Construction Business Survey Index at 106.3 in May... Highest Since 2002

Expectations Rise Over 2·4 Measures and Seoul City's Redevelopment Regulation Easing

Overall CBSI Trend

The Construction Business Survey Index (CBSI) for May recorded 106.3, marking the highest level in 18 years and 11 months.

The CBSI indicates that if the index falls below the baseline of 100, more companies view the current construction market pessimistically than optimistically, whereas a value above 100 means the opposite.

On the 2nd, the Korea Construction Industry Research Institute announced, "The CBSI for May rose by 9.1 points from the previous month to 106.3." This is the highest level since June 2002 (113.4), 18 years and 11 months ago.

Park Cheolhan, a research fellow at the Korea Construction Industry Research Institute, stated, "Based on the overall trend and level of the index, it appears that the construction market is generally in a recovery phase."

Research fellow Park added, "While large construction companies showed favorable new housing order BSI centered on residential construction, the overall progress BSI also increased compared to the previous month. The subscription and sales market conditions in May were good, leading to an overall improvement in performance."

He further noted, "The government's announcement of the fourth public housing candidate sites with a scale of 228,000 units as a follow-up to the 2·4 measures, along with Seoul City's announcement of redevelopment regulation relaxation measures, seem to have positively influenced the index by raising expectations for future housing supply."

However, unlike large and medium-sized companies that recorded above the baseline, small and medium construction companies scored 87.0, below the baseline, with a minimal increase of 0.3 points. It was analyzed that recovery is slow due to recent material shortages, including rebar, and these companies are still facing difficulties.

Meanwhile, the CBSI for June is also expected to be favorable at 107.1, similar to May, indicating a positive outlook for the construction market.