Korean companies join Ukraine reconstruction

Industry

Published: 17 Jul. 2023, 18:29 Updated: 17 Jul. 2023, 19:38

Korean companies join Ukraine reconstruction

Korea's Minister of Land, Infrastructure and Transport, Won Hee-ryong, center, joins Hyundai E&C CEO Yoon Young-joon, left, and Boryspil International Airport Corporation's Director Oleksiy Dubrevskyy for a photo after signing an MOU on the expansion project of Boryspil International Airport in Kyiv on Friday. [HYUNDAI E&C]

Dozens of major Korean corporations in the construction, tech and financial sectors are looking to participate in reconstruction projects in war-ravaged Ukraine, an urban redevelopment initiative estimated to cost 2,000 trillion won ($1.58 trillion).

Hyundai E&C inked a memorandum of understanding (MOU) in Warsaw, Poland last Friday to rebuild Ukraine's Boryspil International Airport.

Boryspil International Airport is Ukraine's largest airport, handling 62 percent of the nation's passenger traffic and 85 percent of its cargo. Situated approximately 29 kilometers (18 miles) southeast of Kyiv, the airport has plans to revamp its runway and construct new facilities, including cargo terminals.

Building on a wealth of experience in various airport construction projects worldwide, including Incheon International Airport, Singapore Changi Airport and Peru's Chinchero Airport, the construction company will lend its expertise and track record to support airport expansion initiatives.

In addition to the MOU with Boryspil International Airport Corporation, Hyundai E&C also plans to enter fields including high-speed railways, national infrastructure, and energy-related projects.

Hyundai E&C also forged partnerships with Holtec International, a US-based nuclear power company, to jointly build small modular reactors for Ukraine's energy infrastructure reconstruction.

Samsung C&T inked an MOU on Friday to build a smart city in Lviv, western Ukraine's largest city. The MOU also included Onur, a Turkish construction firm that has been involved in Ukrainian projects for nearly two decades. The concept of a smart city integrates urban infrastructure with advanced information and communication technology to enhance the overall quality of life for residents.

Leading tech companies, including Naver and Kakao, will export their technologies to help reconstruct the war-torn countries.

Naver’s Chief Communications Officer Chae Seon-ju was part of an 89-member business delegation on President Yoon Suk-yeol’s visit to Poland and said the company will “contribute to helping businesses by digitally transforming and upgrading the cities' digital infrastructure.”

Naver’s three-dimensional mapping technologies that create a digital twin of the physical world will be used as the blueprint for Ukraine’s plans to build smart cities out of war-ridden cities, including the capital Kyiv.

Naver will also develop Ukrainian-based generative artificial intelligence to help digitally enhance governmental services.

The tech giant is set to reveal its next-generation generative AI tool, HyperClova X, on Aug. 24, whose Korean language model’s capacity is greater than the English model of OpenAI’s ChatGPT 3.5.

Both technologies will be provided via Naver's sovereign cloud service. A sovereign cloud operates in compliance with the local laws in each country regarding data storage requirements, information collection, and data access.

Naver Cloud, which began the service in 2017, has 23 data centers in 10 countries.

Kakao Mobility CEO Ryu Geung-seon speaks at the 2023 Korea-Poland business forum Forum in Warsaw on Friday attended by some 350 businesspeople and officials from both countries. [KAKAO MOBILITY]

Kakao Mobility CEO Ryu Geung-seon said that the company is assessing Ukraine’s platform infrastructure to provide solutions based on the company’s mobility technologies and platform businesses.

In line with the move, there is a concerted push to strengthen ties with Poland, a country that shares a border with Ukraine and is expected to play a vital role in Ukrainian reconstruction efforts.

To bolster and support these efforts among companies, the International Contractors Association of Korea signed separate MOUs for reconstruction with both the Confederation of Builders of Ukraine and the Polish Association of Construction Employers.

The Export-Import Bank of Korea (Korea Eximbank) and Korea Trade Insurance Corporation (K-Sure) signed an MOU with Poland-based Bank Gospodarstwa Krajowego (BGK). Korea Eximbank said Sunday the trio will expand financial and national cooperation in infrastructure, transportation and renewable energy.

BGK is a Polish development bank that supports Poland's sustainable and economic development.

The partnership “will be a good opportunity for Korean companies to find export business opportunities in Poland and neighboring countries,” Korea Eximbank Chairman Yoon Hee-sung said, highlighting opportunities in infrastructure and renewable energy in particular.

K-Sure Chairman Lee In-ho said Poland is a country Korea should maintain close ties with, as it is a “bridgehead” into Europe.

Projects supporting Ukraine’s post-war reconstruction efforts drew the attention of countries such as the United States, China, and the European Union. The Korean government estimates the undertaking to reach a long-term scale of up to 2,000 trillion won, of which Korean private and public institutions are estimated to contribute at least 66 trillion won.

"Ukraine's vision extends beyond ‘rebuilding’ or mere recovery from war damage, but involves enhancing the national system, or 'new building,'” President Yoon’s Senior Economic Secretary Choi Sang-mok told reporters following the signing of the MOU with Poland on Ukraine’s reconstruction cooperation. Developed countries view the Ukrainian reconstruction endeavor as a potential "second Marshall Plan," or the support provided by the United States to 16 European countries after World War II.

According to the presidential office, Ukraine specifically sought direct investments from Korean companies in various fields where Korea possesses expertise. These areas include social infrastructure construction, supply chains, defense industries, secondary battery and electric vehicle production, and metal refining.

BY SEO JI-EUN, LEE JAE-LIM, JIN MIN-JI [seo.jieun1@joongang.co.kr]