A latest report showed that South Korea's construction sector is losing competitiveness in the global market.

According to a study by the Korea Institute of Civil Engineering and Building Technology released on Tuesday, South Korea's construction industry ranked 12th out of 20 countries in terms of global competitiveness last year.

Last year's ranking is three places lower compared to the ninth place finish from 2017 and marks the first time South Korea ranked below the top ten since the institute began the study in 2011.

The U.S. ranked first, followed by China, Spain, Germany, Britain, while Japan came in seventh. 

Researchers in the study cited significant drops in overseas sales during the past three years, with South Korea being sandwiched between latecomers with price competitiveness and technologically advanced players from developed nations.

The report said local builders should seek ways to differentiate strategies and reinforce their quality, safety and management capabilities to gain the upper hand.