Construction shrinks in 2008 on slumping housing market

SEOUL, Feb. 9 (Yonhap) -- Construction permits in South Korea declined around 20 percent in terms of floor space last year due to an overall slump in the housing market, a government report showed Monday.

According to the report by the Ministry of Land, Transport and Maritime Affairs,
about 120.6 million square meters of floor space were permitted for housing
construction last year, compared with 159.5 million square meters a year ago.
The decline comes amid a deepening slump in the housing sector sparked by
tightening credit conditions for builders and a worsening economic slowdown.
Permits for new houses and apartments fell last year to their lowest level since
1998, when the nation was still under strain from the Asia-wide financial
meltdown, according to the report.
A total of 38.46 million square meters were authorized for construction of
residential buildings last year, down 41 percent from a year earlier, it showed.
Construction permits for commercial buildings also declined 6.9 percent to 33.26
million square meters from a year ago, but those for factories increased 13.2
percent to 18.5 million square meters over the cited period, according to the
report.
Meanwhile, construction starts stood at 75.19 million square meters last year,
down 22.2 percent from a year earlier, the lowest level since 2001, the report
showed.