With the construction slump continuing, last year's total construction work value fell 7.9% from a year earlier. It was the biggest drop in 27 years since 1998 during the foreign exchange crisis. After the domestic work value fell 6%, the overseas work value also plunged more than 20%, and it was the first time since 1999 that domestic and overseas construction results declined at the same time.
According to the "2025 construction industry survey results (provisional·construction performance institutional sector)" released by the Ministry of Data and Statistics (MODS) on the 28th, last year's construction work value was 335 trillion won, down 28.8 trillion won (7.9%) from a year earlier. This was the largest decline in 27 years since a 12.9% drop in 1998 during the International Monetary Fund (IMF) foreign exchange crisis.
An official at the Ministry of Data and Statistics (MODS) said, "There is usually a lag of about one year to a year and a half for construction contracts to be reflected in construction work value, and the impact of the 12.1% drop in 2023 contract value has appeared," adding, "Weak domestic construction conditions, including PF, continue."
The domestic construction work value was 297 trillion won, down 6.0% (19 trillion won) from a year earlier. By client, the private-sector work value was 204 trillion won, down 9.5% (22 trillion won) from a year earlier. The public sector was 92 trillion won, up 3% (3 trillion won). It increased at central government agencies and local governments, but the decline was steep in private real estate.
The Seoul metropolitan area work value fell 8.0% to 139 trillion won, and regions outside the metropolitan area fell 4.1% to 158 trillion won. By type of domestic work, building construction fell 8.0% to 212 trillion won, the largest drop. Civil engineering also fell 2.0% to 47 trillion won, while industrial facilities rose 2.3% to 30 trillion won.
The overseas construction institutional sector also saw a large decline. Last year's overseas work value was 38 trillion won, down 20.8% (10 trillion won) from a year earlier. It was the biggest drop in eight years since a 29% decline in 2017. Work value in the Americas fell 45.2%, and in Asia fell 23.5%. An official at the Ministry of Data and Statistics (MODS) said, "Overseas, various variables such as the Middle East war have a big impact, and the end of large projects also plays a role."
Construction contract value, a leading indicator of construction work value, totaled 307 trillion won last year, down 0.4% from a year earlier. Domestic contract value rose 4.0% to 277 trillion won. Metropolitan area contract value rose 8.3% to 142 trillion won, and domestic public institutional sector contract value also increased 11.8% to 98 trillion won. Overseas contract value fell 28.1% to 30 trillion won.