# South Korean construction industry instability > Live situation record from CLSTR: https://clstr.news/situations/south-korean-construction-industry-instability > Updated: 2026-09-06T04:56:49.000Z. Sources: 4. Developments: 2. The South Korean construction industry is navigating a complex landscape of financial instability and divergent performance metrics. Major firms in prime urban areas, such as Seoul’s Gangnam district, are offering aggressive terms like ‘zero-down’ payment structures and multi-year payment deferrals to secure redevelopment bids amid rising costs and strict lending regulations. While large-scale players attempt to secure high-value projects, the broader sector faces significant insolvency risks. Business closures have increased by 24% over the last three years, driven by high interest rates, rising raw material costs, and instabilities in real estate project financing. Recent data shows a disconnect between order backlogs and revenue recognition. Some companies, such as Umi Construction, have seen significant growth in new orders, while others, like Daewoo E&C, report massive order backlogs alongside declining revenues due to the time lag between securing projects and their conversion into active construction and sales. ## Timeline ### 2026-09-06: South Korean construction firms see divergent backlog and revenue trends South Korean construction companies show mixed results: Umi Construction has secured new orders exceeding its 2023 revenue, while Daewoo E&C faces declining revenue despite a massive 53 trillion won backlog. 2 sources. https://clstr.news/cluster/south-korean-construction-firms-see-divergent-backlog-and-revenue-trends ### 2026-08-28: South Korean construction firms offer payment deferrals amid rising insolvency risks South Korean construction firms are offering long-term payment deferrals to win Seoul redevelopment bids, even as rising interest rates and costs drive a 24% increase in industry closures. 2 sources. https://clstr.news/cluster/south-korean-construction-firms-offer-payment-deferrals-amid-rising-insolvency-risks --- Cite as: South Korean construction industry instability. CLSTR, https://clstr.news/situations/south-korean-construction-industry-instability