GS E&C Completes Demonstration of ‘Prefabricated Concrete Apartment’ (Image courtesy of GS E&C)
SEOUL, May 5 (Korea Bizwire) — As modular construction rapidly gains global traction as a sustainable and efficient building method, South Korean construction firms and public agencies are scaling up investments and expanding the scope of projects from single-story homes to high-rise apartments.
Modular construction—where prefabricated components are assembled on-site—offers a range of advantages including shorter construction timelines, consistent quality, and reduced labor demands. South Korean developers are increasingly applying the technique to high-density housing in both domestic and international markets, though challenges remain in regulations and cost competitiveness.
an infographic showing the projected global growth of the modular construction market from 2024 to 2029, alongside the dramatic rise in South Korea’s market size between 2019 and 2023.
High-Rise Push and Government Backing
South Korea’s major builders are racing to develop larger and taller modular housing projects, often employing precast concrete (PC) techniques. Last month, GS Engineering & Construction completed a prototype residential structure with units ranging from 59 to 84 square meters, designed to support buildings of 30 stories or more.
The tallest completed modular project so far is a 13-story residential complex in Yongin, built by Hyundai Engineering. Meanwhile, Hanwha Construction Division is leading in scale, with a target of delivering 100,080 modular units in Iraq by 2030—more than 30,000 of which have already been completed, with over 21,000 occupied as of the end of 2024.
Samsung C&T and Hyundai Engineering are also targeting overseas markets. In 2023, Samsung signed a partnership with Indonesia’s largest property developer to integrate modular and renewable energy technologies into smart city projects, while Hyundai formed a joint development pact with Ukraine’s Dnipro region to promote modular housing.
Domestically, the government is aggressively backing the shift. The Korea Land and Housing Corporation (LH) revealed a roadmap in 2024 to construct 450-unit public rental modular housing in Sejong by 2027—the largest of its kind in the country.
In April 2025, LH also completed South Korea’s tallest modular model home, a 22-story structure in Uiwang. The agency plans to commission 1,000 units this year and scale up to 3,000 units annually between 2026 and 2029.
View of Bismayah New City in Iraq (Image courtesy of Hanwha Construction Division)
Global Market Growth, Local Challenges
According to global market intelligence firm MarketsandMarkets, the global modular construction market is projected to grow from $104.1 billion in 2024 to $140.8 billion (approximately 201 trillion won) by 2029. In South Korea, the modular housing market surged from just 32.4 billion won in 2019 to over 805.9 billion won in 2023, according to the Korea Iron & Steel Association.
Modular homes can reduce construction time by about 30 percent while requiring fewer workers. In LH’s Sejong pilot site, it reportedly took just 30 minutes to position a single modular unit. In a separate case, 18 two-story modular homes were built in only 20 days in fire-stricken Andong this March to house displaced residents.
However, several hurdles remain. South Korean building codes require fire-resistance of at least three hours for structures taller than 13 stories—a benchmark current modular products must still work to meet. Transport constraints and the need for heavy lifting equipment also limit the size and design of modules.
Moreover, modular construction still carries a cost premium of approximately 30 percent over traditional methods, largely due to high upfront investment in factories and logistics, especially in a market that remains relatively small.
Despite these challenges, industry experts see modular as an inevitable future. “The construction industry is highly labor-dependent, and as the skilled workforce shrinks and ages, off-site production methods like modular will need to expand,” said Park Hee-dae, a senior researcher at the Korea Institute of Construction Industry. He emphasized the need for greater investment from both government and industry stakeholders to help modular construction gain broader traction.
Ashley Song (ashley@koreabizwire.com)
