Construction Contract Amounts Increased by 10.7% in Q2... Impact of Growth in Industrial Equipment Projects

Construction contract amounts in the second quarter (April to June) of this year increased by 10.7% compared to the same period last year.

The Ministry of Land, Infrastructure and Transport announced on the 26th that the construction contract amount for the second quarter was recorded at 60.6 trillion won. Contract amounts increased in both the public and private sectors.

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The quarterly construction contract amounts had decreased year-on-year for four consecutive quarters starting from the fourth quarter of 2022, but rebounded to the 70 trillion won level in the fourth quarter of last year. It then decreased by 7.9% year-on-year in the first quarter of this year but turned to an upward trend in the second quarter.

By sector, the increase in private construction contract amounts was larger than that of public construction. This was influenced by the growth in industrial facility projects such as semiconductors. Construction contract amounts in the public sector, ordered by the national government, local governments, and public institutions, increased by 9.5% to 16.2 trillion won, while private sector contract amounts rose by 11.2% to 44.4 trillion won.

By type of work, civil engineering contract amounts increased by 29.1% compared to the same period last year, reaching 20.1 trillion won. The increase in large industrial facility projects such as semiconductors and power plants had an impact. Building contract amounts were at a scale of 40.5 trillion won, up 3.4%.

By company size, contract amounts of the top 1 to 50 companies increased by 24.3% year-on-year to 27.6 trillion won. The 51st to 100th ranked companies saw an increase of 21.7% to 2.8 trillion won. On the other hand, companies ranked 101st to 300th decreased by 11.0% to 4.6 trillion won, and those ranked 301st to 1000th also decreased by 12.1% to 4.5 trillion won.

By location of the construction site, contract amounts in the Seoul metropolitan area increased by 16.0% to 29.6 trillion won, while non-metropolitan areas increased by 6.1% to 31 trillion won.

Data on construction contract statistics will be available on the Land, Infrastructure and Transport Statistics website starting from the 27th.