Building agreements in South Korea fell to a record low in the previous quarter, as the real estate market cooled, as rising interest rates weakened demand and inflation-induced cost increases.

The Ministry of Land, Infrastructure and Transport said in a statement. <According to Bloomberg News, the Ministry of Land, Infrastructure and Transportation said in a statement that the value of contracts nationwide fell 181.4TP3T from the same period a year ago to 66.7 trillion won ($51 billion), with most contracts awarded in the private sector. <This was the largest year-on-year decline for comparable data since 2015. <Weak construction activity adds to factors weighing on the economy's prospects. GDP contracted over the past quarter, as exports and construction investment fell, while inflation increased expenses for both businesses and consumers. According to Bloomberg, the situation is unlikely to improve significantly this year, as real estate prices are falling and the country's trade deficit continues to widen.

The <The Bank of Korea cut its growth forecast last month, reflecting an expected decline in construction investment this year.