Recently, large construction companies have been expanding their efforts to discover and collaborate with startups. Startups are expecting the benefits of funding support from large construction companies. However, startups participating in collaborative projects with large construction companies have also expressed concerns about the potential leakage of their technologies. The industry has noted the need for protections for startup technologies and related regulations.
On the 12th, according to the construction industry and others, Hyundai E&C selected 12 startups with innovative technologies through the '2025 Hyundai E&C x Seoul Startup Open Innovation' competition held on the 4th. The selected startups will conduct proof projects with Hyundai E&C's operational departments for about four months. Subsequently, they will be provided with opportunities for broader application on construction sites, purchase contracts, and investments. Hyundai E&C plans to operate an 'Open Innovation Joint Pavilion' at the Korea Construction and Safety Expo in September and will publicly unveil the results of their collaborations.
Hyundai E&C has been continuing this project for the past three years. An example of a startup discovered through this initiative is 'JH Global', which was selected in 2023. They demonstrated the effects of temperature reduction, deodorization, and harmful substance removal by applying heat-reducing and insulating rubber chips using photocatalytic technology to playgrounds in apartments. Recognizing the effectiveness of the technology, they signed a business agreement and purchase contract with Hyundai E&C.
DL E&C also held an open innovation competition with the Seoul Business Agency, a small business support agency under the Seoul city government, from last month until the 4th of this month. This year marks the fifth year of hosting the open innovation competition in partnership with the Seoul Business Agency. Selected startups will receive 10 million won in support for technology verification. Following this, various subsequent collaboration opportunities will open up, including joint development, commercialization, and investment. Previously, in April last year, DL E&C collaborated with a small company, 'Tank Tech', to develop the world's first 'electric vehicle fire suppression system for buildings.'
Lotte Engineering & Construction also engaged in open innovation in April with the Busan Creative Economy Innovation Center and the Korea International Trade Association, focusing on securing practical on-site technologies related to environment in apartment complexes, inter-floor noise, safety, and quality control. In this open innovation initiative, two promising startups with less than seven years of experience were selected.
BS Hanyoung started its public recruitment for '2025 Seoul Startup Hub Open Innovation' through the Seoul Business Agency last month, selecting partners in four areas: ▲infrastructure ▲construction technology ▲outsourcing ▲energy.
As competition for new technologies such as artificial intelligence (AI), Internet of Things (IoT), robotics, drones, renewable energy, and eco-friendly construction methods intensifies, there is a growing atmosphere among large construction companies to support startups to quickly secure technologies. Most large construction companies are focused on housing projects, so collaborating with startups is said to save time and expenses compared to investing in new technologies.
A representative from one construction company said, "Collaboration with small and medium-sized enterprises and startups has become one of the essential virtues for large construction companies in terms of mutual growth." Another representative stated, "Although construction companies sometimes set up separate departments for developing certain new technologies, there are limits, so it's very helpful to research and develop some areas through collaboration."
From the perspective of startups, gaining the opportunity to contact large companies is seen as a significant advantage. A representative from a startup that participated in the open innovation with large construction companies said, "Large companies meet the conditions for economies of scale and ISO (International Organization for Standardization) certification, so just having a connection with them is a significant advantage for startups."
However, some argue that the excessive expansion of open innovation should be approached with caution. While it allows startups to receive support and raise awareness of their technologies, there are structural limitations that make it difficult to escape the large construction company systems, and there are few instances where it leads to actual supply contracts.
A startup representative noted, "Collaboration with large companies is more about creating opportunities for transactions rather than directly increasing sales. It's about breaking into business with large companies and obtaining significant references through that. However, since such collaborative projects are often limited to technological parts or preliminary development, there are not many cases where products developed through collaboration are actually supplied to large construction companies. I hope more examples of collaboration lead to products that meet on-site needs."
Another representative from a startup mentioned, "Most of the time, startups have to conform to the established systems of large companies, and trying to fit within their schedules and budgets often makes it difficult to achieve significant results. Concerns about technology leakage are also valid. There appears to be a need for institutional measures to protect startups."
Experts have also explained that while collaborations with startups are increasing, there are limitations to becoming a new source of income. Lee Eun-hyung, a research fellow at the Korea Construction Policy Institute, stated, "It is more convenient for construction companies to outsource rather than develop technologies themselves, but securing funding is necessary for open innovation with startups, which makes it challenging for construction companies without investment capabilities to establish a general trend in the industry."