LH Rallies for Mutual Growth by Using SME Products and Supporting Overseas Market Entry

Purchased SME Products Worth 6.7 Trillion Won
Hosted "Public Procurement Win-Win Matching Day"
Support Goes Beyond Purchasing to Improving Quality

Korea Land and Housing Corporation (LH) is attracting attention for its multifaceted efforts to achieve mutual growth with small and medium-sized enterprises (SMEs). In addition to purchasing products, LH supports technology development and helps expand access to overseas markets. These initiatives are aimed at establishing a virtuous cycle based on win-win cooperation within the construction market.

According to LH on November 14, the company purchased SME products worth 6.7 trillion won last year. The total amount of SME product purchases by all public enterprises and quasi-governmental institutions was 34.2623 trillion won, with LH accounting for 20% of this figure-the highest among all public institutions. From 2022 to last year, LH purchased a total of 24 trillion won worth of SME products over three years. Given that LH’s total procurement volume is about 30 trillion won, the share of SME products reaches 80%. This year, LH estimates total procurement at around 8.3 trillion won, and plans to maintain the same 80% level, with approximately 6.7 trillion won allocated to SME products.

To this end, on October 15, LH’s Southern Gyeonggi Regional Headquarters hosted the "2025 Public Procurement Win-Win Matching Day (Procurement Consultation Session)." Around 20 companies participated, representing product categories such as New Excellent Product (NEP) certified items, products from workplaces for the severely disabled and standard workplaces, innovative products, and products from social enterprises. One-on-one matching consultations were also held for each company. LH plans to continuously monitor procurement performance by region and sector throughout the year, and to conduct on-site procurement consulting, in order to achieve its SME procurement targets.

The K-Tech Exhibition Hall at the Korea Industrial Exhibition held in New Delhi, India, last November. Provided by Korea Land and Housing Corporation

LH’s efforts go beyond simple purchasing, as the company is directly involved in improving product quality. In April, the SME Technology Market Platform hosted the LH SME Growth New Technology Contest. LH selects outstanding technologies from SMEs that possess government-certified or other innovative technologies, and helps them enter the market by applying them at LH sites. Since 2014, LH has selected 311 new technologies, and the value of SME technologies and products applied at LH sites has reached 190 billion won.

In the first half of this year, 40 entries were submitted, with 27 ultimately selected after review. The selected innovations included smart construction technologies and eco-friendly construction methods. One of the chosen technologies, a heat-shielding coating material utilizing a solar heat absorption blocking principle to prevent heat waves, can be used in places where vulnerable groups stay within public housing complexes, such as security offices and senior centers, to suppress indoor temperature rises during summer. After a pilot application, LH will consider expanding its use based on satisfaction and effectiveness. A solar power generation device selected in 2020, which optimizes energy use through a power compensation system, has been applied to 23 sites including LH’s Daegu Jukjeon Happy Housing. Starting from the second half of this year, LH will also broadly consider ways to apply artificial intelligence (AI) technology-a key government policy priority-to construction sites.

To support overseas market entry, LH operates exhibition halls at major international events, enabling domestic SMEs to participate. In June 2023, LH ran the K-Tech Exhibition Hall at the Korean Wave Expo in Frankfurt, Germany, and in November last year, at the Korea Industrial Exhibition in New Delhi, India. Among SMEs with LH-certified new technologies, KOTRA and other agencies select participants based on local market demand and buyer matching potential. LH covers all participation costs and ensures smooth consultations with local buyers. At the New Delhi event, more than 500 buyers visited, resulting in 13 memorandums of understanding (MOUs), one contract, and total orders amounting to 31.9 billion won.

Lee Sangjo, Head of the LH Smart Construction Safety Division, stated, "Given the difficult conditions in the construction market, we will spare no effort to support all processes necessary for the growth of SMEs-our key partners in the industry-from expanding product purchases to developing new technologies, commercialization, and opening up new markets."

This content was produced with the assistance of AI translation services.