Facility investment by Korea's cement industry fell for the second straight year. A drop in sales due to the slump in construction is eroding the industry's capacity to invest. As investments tied to cutting greenhouse gases to achieve carbon neutrality also decline, the industry is asking the government to expand support.
According to the Korea Cement Association's "2025 facility investment results and 2026 plans" released on the 26th, cement companies in Korea plan to invest 429.7 billion won in facilities this year. That is down about 10% from last year's investment of 472.6 billion won and 13.9% lower than the five-year average of 499.2 billion won.
As total facility investment shrank, the industry's spending on environment and safety also decreased. In 2023, investment in rationalization facilities such as environment and safety was in the 500 billion won range, but this year it fell to 384.4 billion won. Investment in environment and safety is essential for the cement industry to achieve carbon neutrality through greenhouse gas reductions and to respond to government environmental regulations, but its capacity to invest is declining.
Still, environment and safety remain a large share of total facility investment. Investment in rationalization facilities such as environment and safety is slated at 384.4 billion won this year. That accounts for 89.5% of total investment.
An association official said, "As cement shipments plunged due to the construction slump, the industry faced a management crisis, and even the expansion of facility investment in the environmental sector—which had been the top management priority regardless of market conditions—was affected."
With revenue deterioration prolonged by the slump in construction, a downstream industry, the cement sector is saying government support is needed to respond to greenhouse gas reductions. To achieve the 2035 nationally determined contribution (NDC) target, about 5 trillion won will be required by 2035, but the industry says it is difficult to secure those funds on its own.
An association official said, "Core technologies needed to cut greenhouse gases are nearing commercialization, but there is no clear, practical way to secure the capital for the facility investments needed to put them to use," adding, "If we also factor in the funds required to install selective catalytic reduction (SCR) systems to cut nitrogen oxide emissions, management conditions will inevitably worsen, so active government attention and support are needed."