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Korea's construction production dips by most in 26 years in Q1

Published: 05 May. 2025, 18:25

Construction workers work at an apartment building construction site in Seoul on April 30, 2025. [NEWS1]

Korea's production in the construction sector declined by the most in more than 26 years in the first quarter amid industry slumps and political uncertainty caused by former President Yoon Suk Yeol's martial law bid, data showed Monday.

The value of construction completed, a measure of production in the construction sector, fell 20.7 percent on year in the January-March period, compared with a 9.7 percent on-year decline in the fourth quarter of last year, according to Statistics Korea data.

The first quarter figures marked the steepest fall since the third quarter of 1998, when the corresponding data dipped 24.2 percent. It also represented the fourth consecutive quarterly decline.

The value of construction orders received also declined for the first time in one year in the first quarter by falling 7.7 percent on year.

The sluggish construction production stemmed from prolonged industry slumps and heightened political uncertainty following Yoon's short-lived martial law declaration in December, according to experts.

Slumps in the construction industry also dented households' income, according to data.

The income of households whose breadwinners work in the electricity, sewage and construction sectors grew a mere 1.4 percent in the fourth quarter of last year, coming in far below the 3.8 percent by which the average household's income increased.

The Korean economy contracted 0.2 percent in the first quarter from three months earlier, the first on-quarter fall in nine months, amid the domestic political crisis and the Donald Trump administration's sweeping tariff plan, central bank data showed.

Yonhap