Construction Contracts Rise 23% in Q1, Fueled by Semiconductor and Data Center Investments
In the first quarter of 2026, domestic construction contracts in South Korea surged by 23.4% to 74.1 trillion KRW, driven primarily by private sector investments in semiconductor and data center projects. This growth indicates a recovery towards the 2022 construction peak, reaching nearly 90% of its all-time high.
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In Q1 2026, South Korea's construction contracts totaled 74.1 trillion KRW, reflecting a 23.4% increase from 60.1 trillion KRW in Q1 2025. Private sector contracts reached 49 trillion KRW, a rise of 35.6%, boosted by investments in semiconductor facilities and data centers.
Public sector contracts also increased to 25.1 trillion KRW, a 5% growth, supported by projects like the Pocheon Power Plant. Regionally, the capital area led with 39.2 trillion KRW, marking a 41.8% rise, while non-capital regions saw a 7.8% increase.
The industrial facilities sector grew by 159%, contributing to a 35.8% rise in civil engineering contracts. This trend highlights a potential risk of regional disparity in construction growth.
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