Construction companies' sales fall for first time in 4 years in 2024
This June 19 file photo shows an apartment construction site in Seoul. Yonhap
Sales of Korean construction companies fell for the first time in four years in 2024 amid a prolonged industrywide slump, government data showed Tuesday.
The combined sales of local builders totaled 487.7 trillion won ($331.67 billion) last year, down 3.8 percent from the previous year, according to the data from the Ministry of Data and Statistics.
It marked the first decline since 2020, when the country was hit by the COVID-19 pandemic.
The figure contrasts with a 12.3 percent increase in 2022 and a 9.9 percent rise in 2023.
Domestic sales sank 5.6 percent year-on-year to 439.3 trillion won, while overseas sales advanced 17.1 percent to 48.4 trillion won.
The number of construction firms in the country stood at 89,101 last year, up 1.4 percent from the previous year.
General construction companies numbered 15,861, down 0.3 percent from a year earlier, with that of specialized builders rising 1.7 percent year-on-year to 73,240.
But their combined workforce decreased 2.8 percent year-on-year to 1.76 million in 2024.
The construction industry's added value stood at 143.2 trillion won last year, down 5.2 percent from the previous year.
The data also showed local builders' construction costs shed 2.6 percent to 477.7 trillion won last year.
The downturn in the construction sector came as financing and construction costs rose amid inflation, while risks related to project financing and unsold homes increased, particularly in sluggish non-metropolitan property markets.