Major construction firms speed up downsizing workforce

An apartment complex is under construction in Seoul, Jan. 28. Newsis

Major construction firms in Korea are cutting staff as the housing downturn persists.

Lotte E&C has become the latest example of the trend, launching a voluntary redundancy program.

Earlier this week, the company informed employees that those who have worked for more than 15 years or are aged 45 and older are eligible to apply. The program offers compensation worth up to 30 months of base pay, a special bonus of 30 million won ($20,000) and up to 10 million won in tuition support per child.

“This program is not just about reducing headcount but about structural reform,” a company official said.

“It is a preemptive move to make our organization younger and stronger.”

Lotte E&C added that it plans to keep hiring this year, noting that it brought on 39 new employees in the first quarter.

Even so, Lotte and other major construction firms continue to scale back their workforces.

Last December, Hyundai Engineering introduced a “career rebuilding” program for employees aged 45 to 60, providing financial support for career changes and tuition assistance for their children.

POSCO E&C also merged divisions late last year, reducing the number of teams reporting directly to executives by 20 percent.

Daewoo E&C conducted its own voluntary redundancy program in 2024.

According to regulatory filings from Korea’s 10 largest construction firms, their combined workforce in 2025 dropped by 2,863 from the previous year.

DL E&C reported the sharpest decline, with headcount falling from 5,589 to 4,742.

Among the 10 companies, SK Ecoplant was the only firm to increase staff, rising from 3,449 to 3,708.

However, the uptick stemmed mainly from transfers within the group. Its housing and infrastructure headcount still fell by 617.

Along with DL E&C, Hyundai Engineering and POSCO E&C, SK Ecoplant was also among the firms that did not hire entry-level employees last year.

“As a quick recovery seems unlikely, construction firms are expected to stay cautious about hiring and taking on low-margin projects,” said Lee Eun-hyung, a researcher at the Korea Research Institute for Construction Policy.