Seoul, Dec 16 (IANS) Sales of South Korean construction companies fell for the first time in four years in 2024 amid a prolonged industrywide slump, government data showed on Tuesday.

The combined sales of local builders totaled 487.7 trillion won ($331.67 billion) last year, down 3.8 per cent from the previous year, according to the data from the Ministry of Data and Statistics, reports Yonhap news agency.

It marked the first decline since 2020, when the country was hit by the COVID-19 pandemic.

The figure contrasts with a 12.3 per cent increase in 2022 and a 9.9 percent rise in 2023.

Domestic sales sank 5.6 per cent on-year to 439.3 trillion won, while overseas sales advanced 17.1 per cent to 48.4 trillion won.

The number of construction firms in the country stood at 89,101 last year, up 1.4 per cent from the previous year.

General construction companies numbered 15,861, down 0.3 per cent from a year earlier, with that of specialised builders rising 1.7 per cent on-year to 73,240.

But their combined workforce decreased 2.8 per cent 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 per cent from the previous year.

The data also showed local builders’ construction costs shed 2.6 per cent 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.

Meanwhile, the South Korean economy is showing gradual recovery in industrial production, led by the growth of domestic consumption, despite the continued weakness of the construction sector, a state-run think tank said.

“Although the construction sector has remained weak for an extended period, consumption continued to improve as the effects of interest rate cuts gradually took hold, supported by government policies,” the Korea Development Institute (KDI) said in its monthly economic assessment report.

–IANS

pk