Sluggish construction industry

[Anchor]

Last year's economic growth rate was only 2%, which is lower than originally expected.

Consumption and exports are both on a downward trend, and the construction industry is particularly serious, further dragging down the growth rate.

Reporter Choi In-young reports.

[Report]

This is Sihwa Lake, which is twenty times the size of Yeouido.

At the far end of the vast lake, the Sihwa Lake Multi-Techno Valley is under development.

Although it aimed to create a large marine leisure complex through project financing (PF), even the most prime land has not found a buyer for three years.

[Nearby Merchant/Voice Altered: "(Doesn't it feel like there are that many people?) That's right. As you can see, the vacancy rate is quite high."]

In an effort to dispose of these PF properties, an unprecedented joint sale was conducted, but signs of hesitation are evident.

[Seo Min-sik/Project Company Employee: "I don't have high expectations for land acquisition, but I came to take a look just in case."]

[Park Chung-soon/Construction Company CEO: "(Real estate) consumer investment sentiment has significantly weakened."]

In the fourth quarter of last year, construction investment decreased by 3.2% compared to the previous quarter, and the third and second quarters were also in the negative.

This is the first time in 13 years that there has been a decline for three consecutive quarters since 2010.

If the total GDP is 100, construction investment accounts for about 15.

Severe construction sluggishness can pull down the GDP.

Last year's growth rate was recorded at 2.0%, lower than the Bank of Korea's forecast.

[Shin Seung-cheol/Director of Economic Statistics at the Bank of Korea: "The recovery of private consumption has weakened, and the sluggishness in construction investment has continued."]

Even though the first half was tough, the so-called 'lower half recovery' in the second half seems increasingly difficult to expect.

[Kim Beom-seok/First Vice Minister of the Ministry of Economy and Finance/Dec. 27: "Given the current situation, I think the second half (of this year) will be a bit more difficult than the first half..."]

The growth rate in the second half being better than the first half has only occurred in 2023 over the past four years.

KBS News, Choi In-young.