Construction Orders Rise in Gwangju and South Jeolla in September, Driven by Public Sector Civil Engineering

In September of this year, the construction market in Gwangju and South Jeolla Province showed signs of recovery, mainly driven by public sector civil engineering projects. Construction orders in Gwangju increased by more than 130% compared to the same month last year, while South Jeolla Province saw an increase of over 70%. However, the private sector experienced a decline due to a slowdown in the real estate market.

According to the "September Industrial Activity Trends in Gwangju and South Jeolla Province" released by the Honam Regional Statistics Office on the 31st, construction orders in Gwangju last month amounted to 161.4 billion won, marking a 133.6% increase year-on-year. This accounted for 1.1% of the national total of 14.3714 trillion won in construction orders.

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By client type, public sector orders surged by 675.4% compared to last year, while private sector orders decreased by 3.8%, affected by declines in real estate, finance, insurance, and service industries. By type of construction, civil engineering orders increased by 835.4% due to growth in railway, track, and landscaping projects. The building sector also grew by 39.1%, mainly driven by projects for schools, hospitals, and government offices.

In September, construction orders in South Jeolla Province amounted to 140.7 billion won, a 72.2% increase from the previous year. Public sector orders rose by 280.1%, while private sector orders fell by 69.3% due to sluggishness in real estate and the primary metal industry. Civil engineering orders increased by 208.4% thanks to more road, bridge, power, and communication projects, but the building sector declined by 71.1% as construction of houses, factories, and warehouses decreased.

Production in the mining and manufacturing sector showed mixed results by region. Gwangju's mining and manufacturing production index was 131.5, up 28.2% year-on-year, but down 8.4% from the previous month. Production of automobiles, electrical equipment, and tobacco increased, while rubber and plastics, fabricated metals, and printing and recording media declined.

In contrast, South Jeolla Province's mining and manufacturing production index was 101.6, down 5.4% year-on-year and 0.8% from the previous month. Production increased for food, rubber and plastics, and machinery repair, but decreased for primary metals, other transportation equipment, and chemical products.

The large retail store sales index, which reflects consumption trends, fell by 8.2% year-on-year to 96.8 in Gwangju, and by 21.7% to 75.6 in South Jeolla Province.

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