South Korean Construction Industry to Resume Its Growth According to Timetric27 Apr 2012 • by Natalie Aster
The South Korean construction industry has been an integral part of the country’s growth due to the expansion of both the infrastructure and residential construction markets. Moreover, South Korean construction companies have been winning foreign construction projects, expanding the profile of domestic companies and earning export revenues. Due to the European dept crisis global business confidence is weak and during the review period (2007–2011), the global financial crisis played a key role in driving down the growth of the South Korean construction industry.
The construction industry recorded a decline in growth and posted a CAGR of 2.07%. In 2008, the industry grew by 8.0% slowing from 9.1% in 2007. In 2009, with the advent of the global financial crisis industry growth decelerated to 4.5%, which was compounded in 2010 and 2011 when it posted respective CAGRs of 1.6% and 2.3%. However, over the forecast period the South Korean construction industry is expected to resume its growth due government infrastructure investments coupled with improving global economic conditions.
According to the report “Construction in South Korea – Key Trends and Opportunities to 2016” by Timetric, the South Korean government is focusing on the improvement of its business complexes while promoting tourism and entertainment. The nation’s rapidly growing IT sector is another key factor expected to drive growth in the commercial construction market. The construction of a film and entertainment complex in Seoul will contribute in achieving a forecast period CAGR of 4.18%.
Construction in South Korea – Key Trends and Opportunities to 2016
Published: March, 2012
Price: US$ 1.950,00
The institutional construction market recorded a CAGR of 3.02% in 2011. Although the market accounted for the smallest share of 7.8%, review period growth was largely supported by the educational and healthcare sectors. Over the forecast period investments in healthcare will be driven by the nation’s aging population and government expenditure on educational infrastructure.
Although the residential construction market’s review period growth only recorded a minimal CAGR of 0.46%, it constituted the largest market share of 33.7%. Over the forecast period, the residential construction market is anticipated to achieve a CAGR of 3.55%, largely due to improvements in economic conditions, a rise in the disposable incomes of the South Korean population and liberalized housing policies.
More information can be found in the report “Construction in South Korea – Key Trends and Opportunities to 2016” by Timetric.
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