The ministry of Land, Infrastructure and Transport announced that they launched the pilot project to offer Happy House built with modular construction as part of the major projects of incumbent government in 2013. The market size of modular construction is getting increasingly enlarged together with strong will of government. The major challenges that current modular construction encounters can be summed up as lack of standardization of material on the stage of design and fabrication. The portion of material costs in modular construction marks 16 to 17% higher than the existing other construction method, and account for 60 % of total construction cost, which is why material management is the most important factor. However, the imperfect standardization and specification on design causes high loss of materials on fabrication, which makes the construction wastes and total construction cost increasing in accordance with the increase of material costs. This study has been conducted to verify major modules by developing optimization algorithm on gypsum board material among wall finishing materials. It is expected that this paper contributes not only to eco-friendly construction by minimizing the waste factors of materials through these efforts, but also to removing high cost issues which had been recognized as a setback of current modular construction.