- The infrastructure sector in South Korea is expected to grow at an average CAGR of approximately 6.6% over the forecast period.
- South Korea’s infrastructure quality ranks highly (6 out 140 in 2018 and 8 out 137 in 2017). The Korean government announced new measures to maintain safe and sustainable infrastructure. Social infrastructure spending will average 8 trillion KRW each year between 2020-2023. From 2019 to 2023, the state will spend 490.8 billion KRW on replacing oil and gas pipelines. This is more than four times the budget for the five-year prior.
- To increase R&D, infrastructure, and economic growth, the South Korean government had planned to spend USD 3.9 billion of its 2020 budget on technology such as artificial intelligence (AI). * South Korea plans to launch 17 trillion KRW ($USD 14.7 billion) private-sector infrastructure projects in 2020 to help boost the country’s economic recovery. The new infrastructure projects being reviewed include 13.5 trillion KRW worth significant roads and rails and 3.5 trillion KRW worth environment-related businesses. In addition, 35 infrastructure projects in the private sector will be started by the government beginning in 2020. They are expected to total 16 trillion KRW.
- The government is trying to encourage investments. This year, approximately 100 trillion KRW worth will be invested in large-scale projects by corporations, public sector projects, and private investments in public projects.
Scope of this report
The Infrastructure sector in South Korea includes expanding construction projects in various sectors like Social Infrastructure and Transportation Infrastructure. The report analyzes the competitive landscape and key players in South Korea’s Infrastructure sector.
Key Market Trends
Road infrastructure is in high demand.
- The Seohaean Expressway runs along the peninsula’s west side and connects Seoul with Mokpo in South Jeolla Province. The Gyeongbu Expressway runs between Seoul, Busan and is the oldest route. The Jungbu Expressway connects Hanam, Gyeonggi Province, with Tongyeong in South Gyeongsang Province.
- Highways have been a significant contributor to the country’s industrialization and development of rural areas over the past decade. They also played an essential role in regional tourism growth. The Gyeongbu or Jungbu expressways carry about 25 percent of all expressway collective freight transport.
- The government has high hopes for the expressway linking Seoul metropolitan and Sejong. Construction of the expressway began in 2016. The Seoul-Sejong Expressway (also known as the second Gyeongbu Expressway) will be located between Gyeongbu, Jungbu lines. It has six lanes in each direction. The Seoul-Sejong Expressway’s first construction route (72 km) runs from Guri, east of Seoul, to Anseong in Gyeonggi Province. Construction is expected to be completed by December 2022.
- The second route, which links Anseong to Sejong (58km), will be constructed as soon as possible and should be completed by June 2024. South Korea wants to cut travel time in congested areas by building underground roads and adding high-speed trains by 2030. The government has three goals: reduce travel time to major regional hubs to just 30 minutes, lower travel costs up to 30%, and reduce the time spent transferring between trains or vehicles by 30%.
Hydro-Power: High Demand
South Korea will construct three hydrogen-powered cities in an extended effort to promote hydrogen energy in Asia’s fourth-largest economy. The government intends to build pilot hydrogen-powered towns within the next 2022. This strategy is part of a larger vision to power 10% of the country’s cities, towns, and counties with hydrogen by 2030. It will grow to 30% by 2040. This will lead to dramatic increases in hydrogen-powered vehicles, charging stations, and infrastructure over the next three years. The government has subsidized these vehicles and the charging infrastructure. As nations across the globe look to reduce global warming, hydrogen could be a vital component of the fundamental shift in the energy system.
This report focuses on the leading players in the Infrastructure sector in South Korea. The market is fragmented. The market is expected to grow over the forecast period because of the increased demand for road infrastructure.