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Photo courtesy of Yonhap News |
[Alpha Biz= Paul Lee] Jeju, September 2025 – A growing number of construction firms in Jeju are shutting down operations as unsold housing inventory, rising raw material costs, and increased labor expenses weigh heavily on the industry.
According to the Jeju provincial government, during the first half of this year 12 general construction companies and 24 specialized contractors voluntarily closed their businesses.
Data released by Statistics Korea’s Jeju office further highlighted the severity of the downturn: in the second quarter of this year, construction orders in Jeju dropped by 70% year-on-year, accelerating financial pressures on local builders.
Industry observers warn that without policy support or a rebound in housing demand, the downturn in Jeju’s construction sector could deepen further, potentially affecting employment and regional economic stability.
알파경제 Paul Lee 특파원(hoondork1977@alphabiz.co.kr)
