Market Overview

Since the early 2000s, the trend of building with wood in Korea has increased. This is largely due to the country’s rising affluence, as well as new policies supporting the urban decentralization strategy that encourages a more balanced mix of building types (high-, mid- and low-rise). Government efforts to encourage the construction of passive and zero-energy buildings by 2025 present further opportunities for wood within Korea’s construction sector.

In addition, with the Canada-Korea Free Trade Agreement, BC enjoys tariff-free access for our lumber products and will see the gradual elimination of tariffs for other wood products.

Photo: Canada Village, South Korea | Credit: Canada Wood Korea

Key Stats

0

%
of BC wood shipped to Korea is construction-grade lumber

0

x
The value of BC softwood lumber exports to Korea has more than doubled since 2006

0

+
2x4 homes built since the start of the program

Why South Korea?

  • Preference for construction-grade lumber
  • Government policies increasingly favour wood construction
  • Societal preferences increasingly favour wood
  • Canada has the expertise and product to meet the growing demand
Photo: Dong-cheon Urban First Town House, South Jeolla province | Credit: Gwangjang Architects

Market Priorities

  • Expand wood use in residential construction
  • Support and facilitate wood use within industrialized construction (multi-storey/multi-family residential, non-residential and tall wood mass timber) and prefabrication
  • Position Canadian wood products and building systems as solutions to South Korea’s low carbon and sustainability goals
  • Expand the market for BC value-added products in South Korea
Photo: South Korea technical mission to BC | Credit: Canada Wood Korea

Strategic Approach

Supported by FII, the Canada Wood Group leads market development programming in South Korea and continues work to expand opportunities for Canadian forest products, particularly in the construction sector. Efforts are focused on removing barriers to wood use, building capacity through training, expanding and deepening government contacts and providing guidance and technical support to the industry.

Photo: Canada Wood’s Dagagu house demo project, Incheon Metropolitan City | Credit: Canada Wood Korea

Featured Projects

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TORY, not tiny— a new approach to modular homes

Modular homes in South Korea have historically been targeted to the premium end of the marketplace, making the homes a niche market. Namuro Homes sees a much larger mainstream opportunity and is appealing to it with a new home—TORY (meaning small, yet robust)—that offers greater value without sacrificing looks or features.

Developed with input from Canada Wood, the TORY home cuts costs by using a 2×6 framework rather than the heavy timber typically used for modular homes. Cladding is premium B.C. cedar, with high-quality doors, windows and interior finishing rounding out the homes. The result is a product that cuts costs, but not quality.

Photo: Younglim

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Breaking the sound barrier: new rules pave the way for wood in the multi-family sector

Multi-family housing technology has gained attention in Korea as developers seek to improve the efficiency of their existing building portfolios and meet the growing demand for urban housing; however, until recently, barriers to wood use in multi-family housing construction had effectively blocked its uptake.

For the past 30 years, floor impact noise in multi-family wood frame houses in Korea has been evaluated using the “(big) bang machine”. The impact force of this tire drop machine is well above the range of typical impact forces found in residential housing and the testing method had long been criticized by the Korean wood construction industry.

In August 2022, years of technical work and submissions by Canada Wood and industry researchers paid dividends when Korean authorities announced that the impact ball—an alternative acoustic test that allows lighter wood-frame floor assemblies to meet performance requirements for sound mitigation—was replacing the bang machine.

Combined with earlier revisions to the Korea Design Standards that abolished total floor area and height limits for wood buildings, the new sound regulations are a game changer for the use of both light timber and mass timber construction in South Korea’s multi-family housing market.

Performance testing of shear wall at the National Institute of Forest Science  | Photo: Canada Wood Korea

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Dotori— the little acorn that grew

The old saying that “mighty oak trees from tiny acorns grow” is definitely true in the case of the Dotori (acorn) kindergarten. Built as the first-ever Canadian Super E® public building in South Korea, the facility has achieved a number of milestones. First, it shows the market that a high degree of energy efficiency through wood-frame construction is possible; second, that local firms have the expertise to build to the high standards required by energy efficient systems like Super E®; and third, that the pre-fabrication used for much of the structure is an efficient construction approach in South Korea. Framing the building from pre-fabricated components took only five days—an incredibly fast timeline that has caught the attention of developers and builders. The little acorn planted with Dotori may soon flourish into much broader use of Super E®.

Originally developed by Natural Resources Canada, Super E® housing is a high-performance building methodology focusing on how a building must perform, rather than how it is built. This building system responds to Korea’s need for healthy, energy-efficient construction and is now delivered through the Korea Wood Construction Association with support by Canada Wood.

Photo: Professor Tae Woong KANG at Dankook Universitye

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Adding value to marketing efforts in South Korea

Led by BC Wood, efforts to boost sales of B.C. value-added wood products in South Korea are succeeding through targeting niche markets within larger market segments (such as secondary homes within the larger home construction sector). This approach maximizes the value of the marketing effort by reaching out to targeted individual buyers and developers.

Niche sectors now being developed in South Korea include:

  • 2×4 house packages,
  • coastal species and glulam for traditional Korean “Hanok” housing,
  • log and timber frame construction,
  • engineered wood products,
  • and finishing materials and cabinetry for high-end wood-frame construction and resort developments.

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Hammer Sound | Photo: Park YoungChae