[Infrastructure, From Construction to Replacement]⑩ "We Will Actively Participate in Replacing Aging SOC"... Companies Line Up for the Smart Infrastructure Market

'Smart Maintenance' Market Driven by AI and Drones
Semiconductor Boom Boosts Tax Revenue, Creating an Opportunity for Infrastructure Upgrades
Korean Builders Eye SOC Projects with Advanced Technologies

The deterioration of national infrastructure such as roads, railways, and power grids is expected to present new business opportunities for the domestic construction industry, which has largely focused on housing projects. There is growing anticipation that a 'smart maintenance' market utilizing artificial intelligence (AI), drones, and other technologies will emerge. Especially given that this year's national tax revenue is likely to surpass initial forecasts thanks to a semiconductor boom, many see this as an opportune moment for a large-scale upgrade of infrastructure. The government is currently pushing forward with multi-trillion won projects to improve aging infrastructure, including expanding the social overhead capital (SOC) budget and launching large-scale national initiatives.

At a construction site, smart construction technology utilizing the quadruped robot 'Spot' is being applied to carry out construction tasks. Hyundai Construction

The reason there is now an opportunity for comprehensive infrastructure maintenance is because this year's government tax revenue is expected to be significantly higher than projected. According to the Ministry of Strategy and Finance on July 16, total revenue by May this year had reached 330 trillion KRW, an increase of 50.2 trillion KRW from a year earlier. Of this, tax revenue amounted to 199 trillion KRW, up 27.5 trillion KRW from the same period last year. A robust semiconductor market led not only to higher corporate taxes but also a 9 trillion KRW increase in income taxes due to rising bonuses.

The government’s SOC budget has stagnated at around 25 trillion KRW for several years. According to the Ministry of Economy and Finance, the domestic SOC budget was 25 trillion KRW in 2023, increased to 26.4 trillion KRW in 2024, but then dropped by about 1 trillion KRW last year. However, this year the budget was increased to 27.7 trillion KRW.

Experts stress the need to systematically examine domestic infrastructure in light of the semiconductor boom. While budgets exceeding 20 trillion KRW are continuously allocated each year, they argue that funding for SOC should be accelerated because it is directly tied to public safety.

Cho Wonchul, Professor Emeritus of Civil and Environmental Engineering at Yonsei University, stated, "Continued investment in maintenance and management is essential to slow down the aging of infrastructure. The current boom in the semiconductor industry is possible because past infrastructure — roads, electricity, water and sewage systems — provided the necessary support. To ensure the semiconductor sector’s sustainability, infrastructure investment must be further increased."

Park Sukjun, Vice President of the Korean Professional Engineers Association (civil construction engineer), remarked, "The budgetary priority for SOC has continuously been pushed back, resulting in insufficient investment in infrastructure. A significant portion of facilities are now over 30 years old. Because this is directly linked to social safety, investment should be directed toward sufficient maintenance, safety diagnoses, and thorough verification." He added, "The costs of reinforcing aging facilities will continue to rise exponentially and strategies must be prepared in advance."

Particularly, with major regional development projects in the pipeline — such as the Yongin National Semiconductor Industrial Complex and related road infrastructure, the Greenbelt National Strategic Project, and underground railway development — there is a call to connect these initiatives with regional revitalization. As regional development projects expand, the local construction market is also expected to recover. An industry representative explained, "The expansion of SOC budgets and the ramp-up of large-scale national projects are expected to improve regional construction volume, bidding structure, and liquidity."

The related industry is already moving behind the scenes, anticipating that the infrastructure maintenance market will expand significantly. A representative from Daebo Engineering & Construction, a company primarily focused on civil engineering, said, "If the government initiates a market for replacing aging infrastructure, we are eager to participate actively."

Major construction firms are also considering participating in SOC-related projects with cutting-edge technologies. GS E&C intends to carry out not only repairs on aging roads and bridges this year, but also on power grid infrastructure. Hyundai E&C and Daewoo E&C plan to form teams and actively compete for new SOC project orders whenever they become available.

Infrastructure reinforcement projects are also expected to stimulate related industries such as AI. For instance, when upgrading aging bridges or tunnels, GS E&C deploys 3D laser scanners, and in areas where human access is difficult or dangerous — such as bridge substructures, bearings, tunnel interiors, and confined spaces — it uses drones and robotics to collect data. The acquired data is then converted into digital twins, and AI analysis is used to detect key defects such as cracks and corrosion.

SK Ecoplant is also positioning itself as an AI infrastructure solutions provider. Leveraging expertise in mechanical, electrical, and plumbing (MEP) fields, the company participates from the business planning stage to evaluate constructability and technical feasibility.

Choi Myung-ki, Professor at the Korean Industry Site Professors Association, stated, "Smart technology is essential for managing aging SOC these days. Where previously workers risked suffocation accidents by directly entering sewers, now such hazards can be eliminated at the source by deploying robots."

The power equipment sector, too, sees the infrastructure replacement process as an opportunity to enhance its AI capabilities. Hyosung Heavy Industries is focusing on hardware technology to improve the stability of power systems. A company representative noted, "Power infrastructure is about more than just replacing equipment. With our AI-based asset management solution, we provide real-time diagnosis of power facility conditions, predict faults in advance, and thereby enhance reliability and extend equipment lifespans." The representative continued, "A 800VDC-based semiconductor transformer (SST) currently under development will maximize energy efficiency in data centers."

Accumulating expertise in infrastructure maintenance is expected to not only unlock opportunities abroad, but also invigorate new businesses such as waste management. Professor Cho commented, "With a decline in new orders, it is inevitable that construction companies pivot toward infrastructure renewal projects for aging facilities. Companies need to gain experience domestically in order to secure new business opportunities overseas."

Professor Choi predicted, "The adoption of smart construction methods opens a huge new market by reducing project timelines and costs. For example, facilities on Seoul's Seosomun-ro that are more than 60 years old will eventually need to be entirely dismantled, which means the market for construction waste related to such projects will also see substantial growth."

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