SK D&D, the real estate arm of South Korean conglomerate SK Group, and Yanolja Cloud, a subsidiary of South Korean online travel and leisure platform Yanolja, have jointly established a proptech business venture. The newly formed company, named Loco Partners, aims to develop smart building solutions and services that enhance convenience and efficiency for building users and operators.
Loco Partners will use SK D&D’s knowledge of real estate development and management, as well as Yanolja Cloud’s expertise in cloud computing and Internet of Things (IoT) technology, to create customized and creative solutions for property owners and tenants. The joint venture will focus on developing services that improve energy efficiency, maintenance management, security, and tenant engagement.
The establishment of Loco Partners comes amid growing demand for proptech solutions in South Korea’s real estate industry, which is undergoing rapid digital transformation. According to a report by real estate consulting firm JLL, proptech investment in Korea reached a record high of USD 800 million in 2019, up from USD 34 million in 2015.
The report highlights that proptech startups in Korean are “optimizing traditional property operations and investing in emerging solutions such as blockchain, virtual reality and artificial intelligence.” In line with this trend, SK D&D and Yanolja Cloud’s joint venture is expected to leverage cutting-edge technologies to create solutions that meet the evolving needs of property owners and occupants.
Loco Partners is also expected to benefit from SK Group’s extensive network of affiliates and subsidiaries, including SK Telecom, South Korea’s leading telecommunications provider. The joint venture may collaborate with SK Telecom to develop smart building solutions that incorporate 5G network technology, which offers increased data speeds and lower latency.
SK D&D and Yanolja Cloud have expressed confidence in the potential of the new venture, citing both companies’ strengths and experience in their respective industries. SK D&D CEO Kang Dae-ho stated: “With Loco Partners, we will develop various smart building products and services to lead the transformation of the real estate industry.”
Yanolja Cloud CEO Lee Jin-gyeom added: “With our experience in operating various IoT services, we will create new value through a differentiated smart building platform for both building users and operators.”
The establishment of Loco Partners is another example of the increasing collaboration between established corporations and startups in the proptech sector. Established players such as SK Group are seeking to leverage the innovative ideas and expertise of startups to stay ahead of the curve in an increasingly competitive real estate market. Meanwhile, startups are seeking the resources and networks of established corporations to scale up and commercialize their ideas.
Overall, the establishment of Loco Partners is expected to contribute to the growth and development of South Korea’s proptech industry, and to improve the quality of real estate services and experiences for both landlords and tenants.