Overseas Construction Orders Reach $47.3 Billion Last Year, Highest Since 2014

Ministry of Land, Infrastructure and Transport Releases 2025 Overseas Construction Contract Status

The Ministry of Land, Infrastructure and Transport announced on January 9 that the total value of overseas construction contracts secured by South Korean companies last year reached $47.3 billion, the highest level in 11 years since 2014. The second-largest overseas construction contract in history, the Czech nuclear power plant project, was a major driver of this growth.

Overseas construction orders last year increased by more than $10.2 billion (27%) compared to the previous year. After falling to just above $20 billion in 2019, the sector has been on a recovery trend. This marks the fourth consecutive year of growth since 2021 ($30.6 billion). The $40 billion mark was surpassed for the first time in a decade, since $46.1 billion in 2015.

In the 60-year history of Korean overseas construction, there have now been nine years in which annual orders exceeded $40 billion, up from eight times between 2008 and 2015. The Ministry of Land, Infrastructure and Transport stated, "This achievement marks the peak of four consecutive years of growth, proving the strength of Korea’s overseas construction sector."

By region, Europe accounted for $20.2 billion, or 43% of all overseas orders, a fourfold increase from the previous year. The construction of the Dukovany Nuclear Power Plant in the Czech Republic, contracted in June last year, played a significant role. This project involves building four additional nuclear reactors, each with a capacity of up to 1,200 MW, in the Dukovany and Temelin regions by 2040, with a total budget of $18.7 billion for two reactors. Korea Hydro & Nuclear Power is responsible for project management, procurement, and commissioning, while Korea Electric Power Corporation Engineering & Construction is in charge of design. Doosan Enerbility will supply the main equipment, and Daewoo Engineering & Construction will handle construction.

In the Middle East, traditionally a stronghold for Korean construction firms, orders amounted to $11.9 billion, a decrease of about 36% from the previous year. In contrast, orders in North America and the Pacific region rose by 45% to $6.8 billion, while those in Asia fell by 10% to $6.4 billion.

The Ministry explained, "Continued growth in power generation contracts was driven by increased electricity demand due to energy security and economic and industrial development." It added, "Since first entering Australia and South Africa in 2022, energy storage system (ESS) contracts reached $700 million last year, making electrical works the third-largest segment after industrial facilities and building construction."

Exterior view of the Dukovany Nuclear Power Plant in the Czech Republic. Provided by Daewoo Engineering & Construction

The value of contracts awarded to small and medium-sized enterprises, including domestic subcontracted projects, was $1.6 billion, down about 19% from the same period last year. This was attributed to a decline in factory orders from the United States.

It is also notable that Korean companies are achieving results in sectors with high future growth potential. The Ministry highlighted that domestic construction companies are diversifying their portfolios into areas such as ESS, carbon capture, and data centers. In Qatar, a major project to capture, compress, transport, and store carbon dioxide, a byproduct of LNG plants, was secured for $1.37 billion. Data center orders surged from just $400,000 in 2024 to $480 million last year.