News / Korea / yonhap_finance
Construction Stocks Surge 33% on Hopes for Nuclear and Data Center Projects
Industrial Services · Engineering & Construction · yonhap_finance · 2026-08-29
000720, 002990, 006360, 039490, 047040, 375500
Construction stocks led the KOSPI this month, driven by expectations for large-scale non-residential projects like nuclear plants and AI data centers.
What Happened
Construction Sector Surge: The construction sector recorded a 33.11% monthly gain on the KOSPI this month, ranking first among all sectors. Major stocks such as Kumho E&C, Daewoo E&C, and GS E&C showed strong synchronized growth.
Growth in Non-Residential Projects: Investors are increasingly optimistic as construction firms pivot away from traditional housing projects toward new growth areas, including nuclear power plant construction and AI data center (AIDC) development. These projects are viewed as key drivers for earnings improvement.
Major Project Wins: Prospects for increasing order backlogs are rising as projects like Daewoo E&C’s Czech nuclear plant and the data center construction plans by GS E&C and Hyundai E&C materialize. Non-residential projects are particularly noted for their high contribution to earnings and record-breaking scale.
Mid-to-Long Term Outlook: Analysts anticipate an unexpected boom for the construction industry over the next two to three years. The expansion of power facilities and data center demand, driven by rising domestic and international electricity needs, is expected to lead a new order cycle for construction firms.