South Korea Infrastructure Market

South Korea Infrastructure Market Overview:

The South Korea infrastructure market size reached USD 58.70 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 82.90 Billion by 2033, exhibiting a growth rate (CAGR) of 3.55% during 2025-2033. The South Korea infrastructure market share is increasing because of the advancing regional connectivity through cross-border infrastructure initiatives that enhance trade, tourism, and economic cooperation. These projects focus on streamlining logistics, fostering international partnerships, and ensuring the country’s infrastructure remains competitive, while also strengthening diplomatic ties and long-term economic resilience.

South Korea Infrastructure Market Trends:

Evolving Energy Infrastructure and Smart Grids

South Korea's shift towards a more varied energy portfolio is fueling investments in energy infrastructure, with a growing focus on smart grids and renewable energy technologies. The Government's dedication to decreasing reliance on fossil fuels and reaching carbon neutrality is driving swift expansion in renewable energy sectors, such as solar, wind, and hydrogen energy. Intelligent grids, providing real-time energy management and distribution, are essential for improving energy efficiency and facilitating the integration of fluctuating renewable energy sources. Funds are also allocated to energy storage technologies, infrastructure for electric vehicle (EV) charging, and energy-efficient construction solutions. These enhancements are fostering a more robust and sustainable energy environment that aids South Korea's larger green shift. In accordance with this trend, in 2024, GE Vernova obtained an important HVDC contract with Korea Electric Power Corp. (KEPCO) to deliver advanced high-voltage direct-current technology for South Korea's largest power grid initiative. The initiative, which is a segment of a 4-GW HVDC transmission line, will link the power production on the east coast to the Seoul metropolitan region. This partnership aided South Korea's energy shift and seeks to improve grid stability and the incorporation of renewable energy.

Technological Advancements and Artificial Intelligence (AI) Infrastructure Integration

The country’s push for digital transformation across industries is accelerating the development of advanced infrastructure solutions to support high-performance computing needs. South Korea is investing in the infrastructure necessary for AI workloads, such as data centers and high-speed internet. The growing demand for scalable, cost-effective AI solutions from enterprises, research institutions, and startups is reshaping the landscape, driving both public and private sector investments. As AI and machine learning (ML) applications continue to expand across industries, South Korea is modernizing its infrastructure to provide the necessary technological backbone. This focus on AI infrastructure development ensures South Korea remains competitive in the international tech landscape while fostering innovation in both the public and private sectors. In 2025, SkyLab announced a strategic partnership with Esnet Systems to expand its XR Cloud into South Korea. This collaboration aims to accelerate AI innovation by providing on-demand, cost-effective GPU computing for enterprises, research institutions, and startups. The XR Cloud will address AI infrastructure challenges, offering seamless scalability and optimized management of AI workloads.

Regional Connectivity and Cross-Border Infrastructure Projects

South Korea is enhancing its regional connectivity through collaborative infrastructure projects that span across borders. These cross-border infrastructure projects aim to streamline the movement of goods and people, contributing to the growth of trade and tourism. Additionally, South Korea’s participation in the Belt and Road Initiative (BRI) is driving infrastructural cooperation with countries in Southeast Asia and Central Asia. These international partnerships are expanding South Korea’s influence while ensuring that the nation’s infrastructure remains globally competitive. The Government's emphasis on fostering regional collaboration enhances both economic resilience and diplomatic relations, ensuring long-term market growth. In 2025, India and South Korea signed an agreement to enhance cooperation in logistics and infrastructure. The partnership, between Department for Promotion of Industry and Internal Trade (DPIIT) and the Korea Transport Institute (KoTI), aimed to improve logistics efficiency and infrastructure planning under India's PM GatiShakti National Master Plan. It will focus on knowledge exchange, technology adoption, and addressing logistics challenges through joint efforts.

South Korea Infrastructure Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the regional level for 2025-2033. Our report has categorized the market based on infrastructure segment.

Infrastructure Segment Insights:

• Social Infrastructure
  • Schools
  • Hospitals
  • Defense
  • Others
• Transportation Infrastructure
  • Railways
  • Roadways
  • Airports
  • Waterways
• Extraction Infrastructure
  • Power Generation
  • Electricity Transmission and Distribution
  • Water
  • Gas
  • Telecoms
• Manufacturing Infrastructure
  • Metal and Ore Production
  • Petroleum Refining
  • Chemical Manufacturing
  • Industrial Parks and Clusters
  • Other
• Others

The report has provided a detailed breakup and analysis of the market based on the infrastructure segment. This includes social infrastructure (schools, hospitals, defense, and others); transportation infrastructure (railways, roadways, airports, and waterways); extraction infrastructure (power generation, electricity transmission and distribution, water, gas, and telecoms); manufacturing infrastructure (metal and ore production, petroleum refining, chemical manufacturing, industrial parks and clusters, and other); and others.

Regional Insights:

• Seoul Capital Area
• Yeongnam (Southeastern Region)
• Honam (Southwestern Region)
• Hoseo (Central Region)
• Others

The report has also provided a comprehensive analysis of all the major regional markets, which include Seoul Capital Area, Yeongnam (Southeastern Region), Honam (Southwestern Region), Hoseo (Central Region), and others.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

South Korea Infrastructure Market News:

• In February 2025, South Korea's National Assembly passed three key energy-related bills: the High-Level Radioactive Waste Disposal Act, the National Infrastructure Power Grid Expansion Special Act, and the Offshore Wind Power Special Act. These bills address crucial energy infrastructure challenges, including nuclear waste storage, power grid expansion, and offshore wind power development. The passage is seen as a major step in tackling power shortages and supporting the transition to renewable energy.
• In January 2025, South Korea announced the launch of a $680 million green marine fuel infrastructure fund. The fund aims to develop eco-friendly fuel storage facilities and bunkering vessels by 2030, with key projects in Ulsan and Yeosu. The initiative is designed to meet growing green fuel demand for domestic and international vessels, boosting port competitiveness.

South Korea Infrastructure Market Report Coverage:

Key Questions Answered in This Report:

• How has the South Korea infrastructure market performed so far and how will it perform in the coming years?
• What is the breakup of the South Korea infrastructure market on the basis of infrastructure segment?
• What is the breakup of the South Korea infrastructure market on the basis of region?
• What are the various stages in the value chain of the South Korea infrastructure market? 
• What are the key driving factors and challenges in the South Korea infrastructure market?
• What is the structure of the South Korea infrastructure market and who are the key players?
• What is the degree of competition in the South Korea infrastructure market? 

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the South Korea infrastructure market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the South Korea infrastructure market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the South Korea infrastructure industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.