Seoul: South Korea's construction contract volume experienced a 4.8 percent decline in the first quarter compared to the previous year, primarily attributed to a slowdown in private sector building projects, as indicated by government data released on Wednesday.
According to Yonhap News Agency, data from the Ministry of Land, Infrastructure and Transport revealed that the country's construction contracts from January to March amounted to 60.1 trillion won (US$44.1 billion), a decrease from 63.2 trillion won during the same period the previous year.
Public sector contracts saw a 12 percent increase year-on-year, reaching 23.9 trillion won, bolstered by ongoing public housing development projects. In contrast, private sector contracts fell by 13.4 percent to 36.1 trillion won, reflecting a weakening in residential and industrial construction projects.
The data further detailed that civil engineering contracts decreased by 11 percent to 21.3 trillion won, largely due to reduced investment in industrial plants. Building construction contracts saw a marginal decline of 0.9 percent, totaling 38.7 trillion won.
Regionally, the greater Seoul area experienced a 5.2 percent drop in contract volumes, amounting to 28.3 trillion won, while non-capital regions saw a 4.3 percent decline, totaling 31.8 trillion won, as reported by the ministry.