The Korea Times
The Middle East crisis and prolonged U.S. interest rate hikes are squeezing Korea's construction sector, triggering massive job cuts at major companies and a surge in bankruptcies among smaller contractors. Cost pressures have deepened due to the conflict in the Middle East, which has caused severe supply disruptions of naphtha, a key petrochemical feedstock, heightening the financial strain on builders. The broader economic downturn is driving the industry to downsize rapidly. The top 10 domestic construction firms employed 49,370 workers at the end of last year. That number fell by 2,863 employees, or 5.5 percent, compared to the 52,233 workers employed at the end of 2024, according to data released by Korea's Financial Supervisory Service last Thursday. Nine of the top 10 firms reduced their headcounts. SK Ecoplant was the sole exception, adding 259 employees. DL E&C recorded the largest reduction as 847 employees left the company last year. Hyundai Engineering cut 635 employees, and GS E&C reduced its staff by 487. Firms are actively scaling back their workforces this year. Lotte EC
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