South Korea's cement demand dips to 1980s levels

South Korea’s construction industry is stuck in a prolonged slump, with domestic cement demand projected to fall to its lowest levels in decades. Persistent structural issues, including an oversupply of unsold homes in regional areas, show no signs of improvement, fueling growing concerns within the cement sector.

According to the Korea Cement Association on Sunday, domestic cement shipments in the first quarter of 2025 fell by at least 10 percent compared to the same period last year. Shipments totaled 4.45 million tons from January to February, reflecting a 24.8 percent year-on-year decline, and March figures are expected to show a similar drop. Detailed statistics are expected to be released in mid-May.

If this trend continues, annual shipments could fall to the 30-million-ton range, comparable to the 1980s. Last year’s shipment volume reached 44.19 million tons. A drop of more than 10 percent this year would bring the figure below the 40-million-ton threshold. Since shipments jumped from 31.8 million tons in 1990 to 44.19 million tons in 1991, the volume has not dipped below 40 million tons, sustained by steady demand from extensive infrastructure and new city development projects.

“The role of cement as a core pillar of national industrial growth has faded, leaving only a sense of crisis,” a Korea Cement Association official stated. “This severe demand collapse is likely to persist for the foreseeable future.”


이축복 기자 bless@donga.com