South Korea’s construction sector input reached a record high of 68.4 trillion won last year, marking the largest figure to date. This represents a sharp increase of 7.4 trillion won, or 12.1%, compared to the previous year’s 61 trillion won.
Historical Surge in Construction Spending
The construction input has shown steady growth over the years. It stood at 30 trillion won in 2016, climbed to 40 trillion won in 2020, hit 57.4 trillion won in 2022, and reached 59.1 trillion won in 2023. Early in 2024, it surpassed 60 trillion won, and last year it achieved another peak.
Key Drivers: Workforce Expansion and Wage Growth
The Ministry of Land, Infrastructure and Transport attributes this rise to an expanding workforce and higher wages in the sector. The number of construction workers grew from 16.353 million in 2024 to 16.636 million last year, an addition of 283,000 workers or 1.7%.
Average monthly wages per construction worker also increased significantly, from 4.168 million won in October 2024 to 4.478 million won in October last year—a jump of 310,000 won, or 7.4%.
Outpacing Other Sectors Over a Decade
Construction input has grown faster than other areas. Over the past 10 years from 2015 to 2025, total national input rose by 71.6%, while construction input surged by 152.4%.
Last year’s total national input totaled 373.9 trillion won, with construction accounting for 18.3%—up from 12.4% in 2015, a gain of 5.9 percentage points. The sector continues to expand even as overall growth moderates.
Future Projections and Policy Insights
Industry observers note that strong performances from major firms, including potential bonuses in semiconductors, could drive further increases this year. The National Assembly Budget Office, in its April 2025 report on recent labor income trends, stated, “Tax revenues tend to expand mechanically due to nominal income growth.” It added, “There is a need to enhance tax equity and responsiveness to circumstances and demands.”
