As the government and corporations unveiled a "three mega projects" plan to make an initial investment of about 1,400 trillion won in semiconductors, physical artificial intelligence (AI), and AI data centers, the construction industry, mired in a slump in the dwellings market, is raising expectations for securing new revenue sources. That is because large-scale projects could follow not only for semiconductor fabrication plants and AI data centers but also for power grids, water supply, roads, and satellite cities. However, some noted that actual orders are likely to pick up in earnest after 2027, and that high-difficulty facility work will likely concentrate on a handful of companies with the relevant technology and track records.
According to the construction industry on the 12th, Han Seung-gu, chair of the Korea Federation of Construction Associations, said at the "2026 Construction Day" ceremony held on the 9th at the Construction Association Hall in Gangnam-gu, Seoul, "The three mega projects are a historic opportunity for the construction industry to take another leap forward," adding, "Through regulatory reform, strategic investment, and institutional support, we must make the construction industry the central pillar of Korea's future growth."
Prime Minister Han Seong-sook, who attended the ceremony as the first official economic event since taking office, also said, "More than anything, this is the time when the greatest future for construction is in sight," adding, "Core infrastructure such as industrial complexes and transportation networks, data centers and energy infrastructure can be realized through the construction industry's leading participation."
The construction industry is focusing on five main areas. They are fabs and clean rooms for semiconductor production, AI data centers, power infrastructure such as transmission networks and power plants, industrial complex infrastructure such as roads and water, and construction of supporting residential areas including corporate-led high-tech cities. The government plans to ensure corporations' investment plans translate into regional growth by creating high-tech cities equipped with housing, culture, education, and medical facilities, and by expanding transportation networks such as access roads and railways to industrial complexes.
Under the government plan, four semiconductor fabs totaling 800 trillion won and an ecosystem of partner companies and talent will be built in the southwest region. A further 81 trillion won will be invested in the Chungcheong region to create high bandwidth memory (HBM) production and packaging hubs centered on Cheonan, Onyang, and Cheongju. However, these investment amounts include production equipment, land, and research and development, so not all of it will translate into construction costs.
In the construction industry, companies affiliated with the groups, such as Samsung C&T, Samsung E&A, and SK ecoplant, which have prior experience, are seen as relatively well positioned for semiconductor clean room projects that require high security and technical complexity. In contrast, other large and mid-sized construction companies are also likely to participate in auxiliary facilities such as office buildings, logistics facilities, and wastewater treatment plants, as well as external infrastructure work, setting the stage for fierce competition for orders.
AI data centers are considered a sector that can be commercialized faster than semiconductor fabs. The government and SK, GS, and Naver will in phase one build 8.4 GW (gigawatts) of AI data centers, and expand the SK data center capacity by an additional 10 GW by 2035 to bring the total to 18.4 GW. The phase-one investment plan is about 550 trillion won.
Builders are also expanding their advanced plant workforces. GS Engineering & Construction recruited talent in the first half of this year for plant architecture, civil engineering, steel structures, instrumentation, and commissioning, and SK ecoplant is hiring for process management, design, and construction in semiconductor plants and high-tech businesses. This is seen as a move to reduce the share of the dwellings business and cultivate non-residential sectors such as semiconductors, data centers, and nuclear power as new growth pillars.
If public works such as roads, water facilities, and industrial complex infrastructure expand, regional builders struggling from declining orders could also see work come their way. That is because local government-ordered projects allow regional firms to join consortia through mandatory regional joint contracting. However, this system does not automatically apply to semiconductor fab and data center projects ordered by private companies, so the actual benefit to regional firms is expected to vary depending on the ordering method.
Some cautioned against rosy outlooks. The investment scale is large, and there are many challenges to resolve, including building power grids, securing water, land compensation, and permits. A construction industry official said, "The key is whether the announced investment plans will be executed as scheduled and lead to timely groundbreakings," adding, "Rather than being elated or dejected by immediate order expectations, we need to preemptively secure advanced plant technologies and specialized personnel."