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Construction projects face disruption as Iran war strains material supplies

Published: 23 Apr. 2026, 17:43 Updated: 23 Apr. 2026, 19:06

A construction site of apartment complex in Seoul on April 8 [NEWS1]

Korea is bracing for potential disruptions to apartment construction projects nationwide as the Iran war strains material supplies, with the government adjusting project priority, the Ministry of Land, Infrastructure and Transport said Thursday.

Authorities warn the risk could materialize as early as next month and have begun preparing countermeasures.

Vice Minister for Land and Infrastructure Kim Yi-tak noted a "possibility of a complete shutdown of construction projects in May" during an interministry meeting to oversee public livelihood and living costs led by the Ministry of Finance and Economy on Thursday.

“While no projects have come to a full-scale stop yet, the disruptions could materialize in May,” said Kim. “Although shortages of insulation, waterproofing materials and asphalt have already led to partial suspensions in certain stages of construction, we are addressing those situations by prioritizing other projects in order to minimize the impact."

On the ground, builders are already scrambling to secure supplies.

Although large construction firms appear relatively more resilient, with enough reserves to cover the next two to three months, smaller and mid-sized companies are likely to face shutdowns next month unless they secure materials.

A person gestures toward apartment buildings from a skyscraper in southern Seoul on April 8. [NEWS1]

During the early phase of the Iran war, construction companies competed to secure materials, which later led to temporary shortages, according to the Land Ministry.

Although supply has somewhat stabilized with the release of inventory, prices are continuously climbing.

Prices for concrete chemical admixtures have risen by as much as 30 percent, insulation materials by up to 40 percent and adhesives by 30 to 50 percent, while the cost of asphalt concrete has climbed by 20 to 30 percent and the prices of plastic window frames and similar materials have risen about 10 percent.

The ministry plans to respond by delaying nonurgent construction orders and prioritizing the supply of materials for urgent projects. It will also share weekly updates on supply conditions to ease uncertainty.

“Difficulties in securing construction materials and rising costs could have a significant impact on housing supply and the real estate market,” Kim said. “We will strengthen our pre-emptive management system.”

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY BAEK MIN-JEONG [[email protected]]