In the second quarter of this year, construction contracts exceeded 80.9 trillion won, approaching the highest level in the past decade. The significant increase in contracts for industrial facilities, particularly semiconductor production facilities, contributed to this surge, although a performance gap has widened between the top 50 construction companies and those ranked 51 to 100.
On September 28, the Ministry of Land, Infrastructure and Transport announced that the construction contract amount for the second quarter reached 80.9 trillion won, up 27.3% from 63.5 trillion won during the same period last year. The growth was driven by an increase in private semiconductor production facilities and public energy and housing projects.
The second-quarter contract amount is 97.8% of the record high of 82.7 trillion won set in the second quarter of 2022. After peaking in the second quarter of 2022, the construction contract amount fell to 45.5 trillion won in the third quarter of 2023.
Contracts for industrial facilities reached 12.1 trillion won, marking a 128.4% increase compared to the same period last year. Pure civil engineering contracts rose to 12.6 trillion won, a 26.6% increase, while landscaping contracts decreased by 14.9% to 8 trillion won. The total civil engineering contract amount, including industrial facilities, increased by 57.5% to 25.5 trillion won. Building contracts also saw a 17% increase, totaling 55.3 trillion won.
Private contracts amounted to 59.6 trillion won, a 29.1% increase from last year. The expansion of semiconductor production facilities led to a 98.3% increase in private civil engineering contracts, which reached 13.7 trillion won. Private building contracts also rose by 16.9% to 45.9 trillion won, driven by housing and mixed-use projects.
In the public sector, contract amounts reached 21.3 trillion won, up 22.4% from the previous year. The expansion of natural gas facilities and energy power plant projects contributed to a 27.1% increase in civil engineering contracts, which totaled 11.8 trillion won. Building contracts in the public housing sector increased by 17.1% to 9.4 trillion won.
However, while contracts for the top 50 companies increased by 58.0% to 44.7 trillion won, those ranked 51 to 100 saw a decrease of 18% to 4.5 trillion won. The statistics for contracts by company size are recalculated excluding non-construction firms, which may result in some discrepancies with the total construction contract amount.
Regionally, contracts in the metropolitan area reached 43.6 trillion won, a 27.8% increase, while non-metropolitan areas saw a 26.7% increase to 37.2 trillion won. Based on the location of company headquarters, contracts in the metropolitan area totaled 50.1 trillion won, a 25.9% increase, while non-metropolitan areas increased by 30.3% to 30.7 trillion won.
* This article has been translated by AI.
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