Boost from Semiconductors and Data Centers... Construction Contract Value Up 23.4% Year-on-Year in Q1

First Quarter Contract Value Reaches 74.1 Trillion Won
Private Sector Up 35.6% Year-on-Year

This year, with a significant increase in private sector construction projects, construction contract value in the first quarter rose by 23.4% compared to the previous year.

According to the Ministry of Land, Infrastructure and Transport on June 26, construction contract value in the first quarter reached 74.1 trillion won. Previously, the highest contract value was recorded in the second quarter of 2022 at 82.7 trillion won, which then dropped to 45.5 trillion won in the third quarter of 2023, but has since been on a recovery trend.

The private sector led the growth, rising by 35.6% year-on-year to 49 trillion won. This was largely driven by the expansion of semiconductor manufacturing facilities and data center projects. The public sector recorded 25.1 trillion won, up 5% from the same period last year, with an increase in projects such as the Pocheon power plant and Busan Port construction leading the trend.

By contract type, civil engineering rose by 35.8% year-on-year to 29 trillion won, bolstered by increased private industrial facility projects. Within civil engineering, pure civil works amounted to 17 trillion won, up 6% year-on-year, and industrial facilities reached 11 trillion won, a 159% surge from the previous year. The building construction sector totaled 45.1 trillion won, an increase of 16.6%, mainly due to the expansion of private sector factories.

By company size, the top 50 companies showed particularly strong growth. Their contract value amounted to 37.7 trillion won, up 40.2% year-on-year. Companies ranked 51st to 100th recorded 4.5 trillion won, a marginal increase of 0.3% from last year. In contrast, companies ranked 301st to 1000th saw a 24.9% increase to 6.5 trillion won, showing notable progress. Other companies recorded 20.1 trillion won, an increase of 8.4% year-on-year.

By region, the Seoul metropolitan area saw contract value increase by 41.8% to 39.2 trillion won compared to the same period last year. Non-metropolitan regions recorded 34.9 trillion won, up 7.8%.

This content was produced with the assistance of AI translation services.