Hyundai Motor Group merges construction R&D units into HMG Construction Technology Institute

Hyundai E&C and Hyundai Engineering are merging their research and development organizations to accelerate the development of next-generation construction technology.

The two companies launched the HMG Construction Technology Institute on Monday, combining Hyundai E&C's Technology Research Institute and Hyundai Engineering's Future Technology Promotion Division.

The consolidation aims to get ahead of the energy transition and the spread of smart construction. The two companies plan to pool their research personnel, technology assets and project experience to strengthen their competitive edge in future construction technology.

The institute will operate as a direct arm of the CEOs of both Hyundai E&C and Hyundai Engineering. With more than 200 staff assigned, it has been expanded into the largest R&D unit among domestic construction companies. Kim Jae-young, a former vice president for research at Seoul National University who joined Hyundai E&C's Technology Research Institute as its director last year, will serve as the institute's inaugural head.

The institute is organized around four core research areas: energy, future residential, smart construction and infrastructure. Specific focus areas include next-generation energy technologies such as small modular reactors, hydrogen and sustainable aviation fuel; new residential products and construction methods; residential data utilization; AI- and robotics-based smart construction; and future infrastructure covering underground space and mobility.

Particular emphasis will be placed on securing foundational technologies and expanding demonstrations in next-generation energy fields, including SMRs, hydrogen, sustainable aviation fuel, offshore wind and biogas. The institute aims to establish a leading position across the energy value chain and deliver results in building sustainable future infrastructure.

Hyundai E&C and Hyundai Engineering are also pursuing joint projects to expand Hyundai Motor Group's hydrogen ecosystem. The two companies are jointly developing and conducting a large-scale demonstration of a 5-megawatt plant-type proton exchange membrane water electrolysis system on Jeju Island.

Hyundai E&C completed South Korea's first water electrolysis-based hydrogen production facility in Buan, North Jeolla Province, last year. Hyundai Engineering has also broken ground on a hydrogen production facility of the same scale in Boryeong. Combining the two companies' technologies and demonstration experience is expected to accelerate Hyundai Motor Group's efforts to build out its hydrogen value chain.

The institute will also work to make greater use of proprietary technologies held by each company, including inter-floor noise reduction and precast concrete systems. The two firms plan to jointly invest in construction automation research, including robotics, to improve the efficiency of R&D spending and use of shared research assets.

"The top priority of this merger is to consolidate the R&D capabilities of Hyundai Motor Group's construction division and generate synergies," an institute official said. "The creation of a large-scale research organization makes it possible to develop and demonstrate technologies that would have been difficult to pursue at the individual company level. We will work to build on each other's strengths and provide the strategic infrastructure support needed to enhance Hyundai Motor Group's future competitiveness."

Through the merger of their research organizations, Hyundai E&C and Hyundai Engineering plan to lead next-generation construction technology and deliver differentiated construction quality, contributing to the development of safe and convenient living infrastructure.

Meanwhile, Hyundai E&C secured the construction contract for the Apgujeong Zone 5 reconstruction project in Gangnam-gu, Seoul on May 30, a development valued at approximately 1.5 trillion won ($998 million). For the complex's name, Hyundai E&C proposed "Apgujeong Hyundai Galleria" in place of its existing premium residential brand "The H." With this win, Hyundai E&C has secured construction rights to zones 2, 3 and 5 among the six Apgujeong reconstruction zones, claiming half of the district's redevelopment work.