Construction Contract Value Tops KRW 80.9 Trillion in Q2, Up 27.3% on Semiconductor and Energy Projects

[Financial News] Construction contract value topped KRW 80 trillion in the second quarter of this year, rising 27.3% from a year earlier. Private semiconductor production facilities and public energy and housing projects drove the increase.
The Ministry of Land, Infrastructure and Transport (MOLIT) announced on the 28th that construction contract value totaled KRW 80.9 trillion in the second quarter, up 27.3% from KRW 63.5 trillion during the same period last year.
By sector, public-sector contracts totaled KRW 21.3 trillion, up 22.4% year-on-year, while private-sector contracts rose 29.1% to KRW 59.6 trillion. In the public sector, civil engineering contracts increased 27.1% to KRW 11.8 trillion, driven by industrial facility projects such as natural gas facilities and power plants. Building construction rose 17.1% to KRW 9.4 trillion, supported by public housing projects. In the private sector, civil engineering contracts surged 98.3% to KRW 13.7 trillion on semiconductor production facility projects and other developments. Building construction increased 16.9% to KRW 45.9 trillion, led by housing and mixed-use office projects.
By construction type, civil engineering, including industrial facilities and landscaping, rose 57.5% to KRW 25.5 trillion. Industrial facility contracts alone reached KRW 12.1 trillion, up 128.4%, mainly due to semiconductor production facility projects. Building construction increased 17.0% to KRW 55.3 trillion, bolstered by private housing and commercial construction projects.
By company size, companies ranked 1st to 50th led the increase, with contract value rising 58.0% to KRW 44.7 trillion. Companies ranked 101st to 300th recorded a 3.5% increase to KRW 4.9 trillion, while those ranked 301st to 1,000th rose 4.7% to KRW 5.7 trillion. Other companies posted an 8.2% increase to KRW 21.1 trillion. Contracts among companies ranked 51st to 100th, however, fell 18.0% to KRW 4.5 trillion.
By project-site location, contract value in the Seoul metropolitan area rose 27.8% to KRW 43.6 trillion, while that in non-metropolitan areas increased 26.7% to KRW 37.2 trillion. Based on headquarters location, contract value in the Seoul metropolitan area grew 25.9% to KRW 50.1 trillion, while the figure for non-metropolitan areas rose 30.3% to KRW 30.7 trillion.
Over the past 10 years, construction contract value peaked at KRW 82.7 trillion in the second quarter of 2022, then fell to KRW 45.5 trillion in the third quarter of 2023 before beginning to recover. Contract value in the second quarter reached 97.8% of the highest level recorded over the past decade.
Data on construction contract statistics is available from the MOLIT statistics website starting today.

[email protected] Jung Kyung-soo Reporter