Heelim, Geokwang to launch joint venture to expand modular construction business

Heelim General Architects and Geokwang Enterprise are moving to establish a new joint company to target the high-quality modular construction market.

The two firms announced Friday they had signed an MOU to jointly pursue modular construction projects and expand their market presence. They plan to combine their respective design and manufacturing capabilities to build an integrated modular construction model linking design, production and quality management.

Under the agreement, Heelim will provide architectural planning, design and quality management expertise, while Geokwang will handle modular manufacturing technology and production infrastructure. The companies aim to create an integrated business framework connecting design and manufacturing from the earliest stages of product planning.

The two companies plan to establish a new joint venture to carry out modular projects together after reviewing specific business terms and completing internal assessments. Details including the equity structure, management approach and division of responsibilities will be determined through further negotiations.

Heelim has been expanding in the modular sector, completing the Villa Mino modular resort in Yangyang, Gangwon Province in February last year and winning a contract to design modular housing in Hawaii. Through this partnership, the firm plans to extend its architectural planning, design and quality management capabilities into the manufacturing stage.

Geokwang was founded in 1984 as a window and door specialist and has since broadened into eco-friendly building products, including building-integrated photovoltaic systems and modular structures. It launched its "G-Modular" brand in 2022 and this year received official certification as an industrialized housing provider, qualifying it to supply residential modular units.

Modular construction involves fabricating major structural components and finishing materials at a factory before assembling them on site. The method has drawn growing attention for its ability to shorten construction timelines by reducing on-site work, while also lowering safety risks, easing skilled-labor shortages and cutting construction waste.

South Korea's modular construction market has grown primarily around public buildings such as schools and military facilities. Heelim and Geokwang are now targeting the private market and plan to jointly develop modular products that integrate design and manufacturing from the initial planning stage, with equal consideration given to aesthetics and buildability.

The government's recently announced Aug. 13 rapid housing supply plan also includes support measures for modular housing. The initiative envisions the public sector leading adoption of modular construction — which has struggled to gain wider traction due to high building costs — to accelerate housing delivery. Key elements include expanding public procurement volumes, launching pilot projects for high-rise modular buildings and enacting special legislation.