In this episode, we will introduce the Challenge With POSCO brand.

Challenge With POSCO brand was created to revitalize venture ecosystem and foster new growth industries. The department in charge operates a nurturing system that creates a startup infrastructure that enables venture businesses to conduct business and research at the same time and helps startups grow smoothly. Based on these efforts, creating the foundation for POSCO Group’s new growth businesses, creating jobs, and enhancing economic vitality is the future that the Challenge With POSCO brand is going to create.

POSCO is pushing for various projects to realize the vision of the Challenge With POSCO brand. It is also striving to find future growth engines for POSCO Group by investing in venture funds and matching businesses between POSCO Group and POSCO venture companies. Let’s take a closer look at the brand’s core businesses and the newly launched programs in 2021 one by one.

l Venture Business Incubation Center

POSCO supports startup spaces by creating incubation spaces for venture businesses, including the CHANGeUP GROUND SEOUL, a public–private partnership incubation center (Ministry of SMEs and Startups).

▲ CHANGeUP GROUND SEOUL (Yeoksam-dong), a public-private partnership startup space operated by POSCO.

The CHANGeUP GROUND SEOUL made up of seven stories above the ground and one basement floor is different in size from the existing venture startup space launched in Korea. In the meantime, many companies and universities in Korea have operated nurturing and support programs such as venture startup support programs, space provision, and investment but CHANGeUP GROUND is entirely different in scale and research support and investment nurturing programs show a different evolution in scale and systematic aspect.

▲ CHANGeUP GROUND POHANG about to be completed on July 21, 2021.

What makes POSCO’s venture incubation center ‘CHANGeUP GROUND’ special? First of all, venture businesses that have moved in aim to be listed on the global stock market, including the United States. This strategy was established to set a business direction with the goal of targeting the global market from the beginning and decided to have global competitiveness by fiercely challenging businesses and Research & Development. From platform companies to bio ventures, the business situation is getting fiercer. The business model of global companies has changed to an open growth model through venture investment and symbiosis, and it has become difficult to survive with romantic and slow-paced models such as starting a business in a garage. POSCO supports companies to succeed in challenges in these difficult situations and has three systematic support systems for venture companies. Let’s take a closer look at what kind of system POSCO has built.

① Selecting supplier from ESG perspective
The first among them is Research & Development and business space. It enables the utilization of technological infrastructures that are difficult to find in other venture incubation infrastructures. Using the infrastructure of POSTECH, a world-class research-oriented university, including the 3rd and 4th generation of radiation accelerator owned by POSTECH, new materials are developed and big data is processed. It has helped to overcome the reality that existing startup companies like artificial intelligence platforms had the only choice of challenging limited modules.

② Financial links
The reason why existing startups could not dream of challenging the global market was that it was difficult to secure funds. POSCO has established investment-related conditions and raised venture funds with a total of 800 billion won to ensure that venture businesses are not restricted in terms of research size with insufficient energy and funds needed to attract investment. It plans to invest 400 billion won in promising fields and another 400 billion won in new growth domains by utilizing excellent domestic and foreign operators.

③ Business Network support
Including POSCO CHANGeUP GROUND SEOUL which opened in 2020, it is currently forming a CHANGeUP GROUND network regardless of location. It has also formed a business network with startup networks secured through Idea Market Place (IMP) and global companies in Korea and abroad so that there is no problem with global cooperation if only technology and business models are in place. Such infrastructure will be of great help not only to venture businesses but also to open collaboration and global expansion of POSCO Group’s various businesses.

In addition, POSCO has been providing technical support and expanding the business scale by directly participating in various projects promoted by venture companies, as well as a venture business nurturing platform and idea discovery since 2021. The challenge of Challenge With POSCO continues until the day when it succeeds by widening the gap with the startup craze in China and other regions!

l Industry-Academic-Research cooperation eco-friendly energy projects to foster venture business and contribute to carbon neutrality

POSCO, POSCO Chemical, and POSTECH are proceeding with eco-friendly solar energy production projects with Gyeongsangbuk-do Province, an energy platform startup ‘H Energy’, and battery ESS business startup ‘PMGROW’ and it is a project of industry-academic-research cooperation.

This project is a business that installs solar energy modules on the rooftops of private buildings of residents in Gyeongsangbuk-do Province and sells eco-friendly energy produced from the modules.

Once the project is on track, POSCO will be able to reliably purchase solar energy needed to achieve carbon neutrality. POSCO’s Global Quality & Service Management Office supports research on weight lightening of energy modules using Giga steel, high tensile steel, and high corrosion-resistant steel and is also pushing to supply “Posmac.”

Gyeongsangbuk-do Province plans to provide low-priced electricity to vulnerable groups in the region by utilizing a portion of the generated energy revenue. The plan is to contribute to revitalizing the local economy, creating jobs, and welfare for low-income groups and the data generated from power platforms will be processed worthily by POSTECH’s AI analysis and used to build the data ecosystem of Gyeongsangbuk-do Province.

l Development of battery standard model for eco-friendly small and medium-sized electric vehicles

The next business to introduce is cooperation in lightening battery packs for eco-friendly electric buses and automobiles. This business is in partnership with PMGROW, an electric vehicle service platform startup. It is pushing to replace low-priced steel plates or aluminum-based electric vehicle battery cases with high-quality steel materials. In particular, it is planning to propose the shape and steel of optimal battery pack case in line with the battery pack performance enhancement bill that is to be revised from July 2021.

With the technical cooperation between the two companies, PMGROW expects to extend the usage time and lighten the weight by increasing battery capacity and reducing the cost compared to Al. The first goal is to apply in new electric buses that will be released in the first half of 2022. In particular, the completion ceremony of the PMGROW’s mass production plant was held in the next-generation battery regulation-free zone located in Pohang, and it signed an NDA with POSCO for the development of lightweight battery packs under the supervision of the Automotive Materials Marketing Office. It is also planning to develop batteries that will be used for electric vehicles, electric bikes, and small electric vehicles in the long term.

▲ At the signing ceremony of NDA for co-development of lightweight batteries with PMGROW on July 5th.

PMGROW also participated as an angel investor in POSCO Capital and if its corporate value increases by continuously strengthening its competitiveness, it can contribute to POSCO’s profit generation.

We took a look at new programs that POSCO is launching with the goal of Challenge With POSCO. I am so excited that there are a lot of interesting programs and I am looking forward to it. Until the day when the startups fostered and supported by POSCO become decacorn companies beyond unicorn companies, POSCO’s challenge will continue in 2021!

A brand created to revitalize the venture ecosystem and foster new growth industries, Challenge With POSCO! POSCO will continue to carry out activities that create a foundation for new growth businesses, create jobs, and enhance economic vitality.

During the event, 16 startups exhibited their prototype products and presented their business plans – these companies had been shortlisted by POSCO last February. Since February, the companies had been perfecting their products and business plans through 1:1 coaching and mentoring sessions.

Health and Medicine, a self-proclaimed ‘pet tech startup’, took home the ‘Best Idea Award’ amongst the 16 shortlisted contenders. POSCO Newsroom sat down with the CEO of Health and Medicine and discussed the company’s journey through the process.

▲ Hyun-Wook Kim, the CEO of ‘Health and Medicine,’ the ‘Best Idea Award’ winner at POSCO’s 17th IMP

l Veterinarian Surgeon for 20 Years, Now a CEO of ‘Pet Tech’ Startup

Q: Congratulations on receiving the ‘Best Idea Award’ at POSCO’s 17th Idea Market Place. Please tell us a little bit about yourself and your company, Health and Medicine.
A: Thank you. My name is Hyun-Wook Kim – my company, Health and Medicine, is what we call a “Pet Tech (Pet + Technology)” startup. We are all about taking care of companion animals with proper medicine and health regimen. We identified a role technology can play in improving the current animal health care system. We want contribute so that both the animals and their human companions can live healthy and happy lives together.

Q: Where did you get the idea for your company, Health and Medicine?
A: I am a veterinarian. I opened my practice back in 2000 and have been taking care of animals for almost 20 years. Over the years, I believe the general awareness of animal care has definitely matured. What I’ve become acutely aware during my practice is how technology can help advance animal welfare. I come from a family of veterinarians. There are six vets in my extended family whose work ranges from clinical practice, digital medicine, to startups. This allows us to bounce ideas off of each other. We had many opportunities to collaborate, and this was a major catalyst to start my own company.

Q: What was your expectation coming into the IMP, and what do you think helped ‘Health and Medicine’ become the winner of the ‘Best Idea Award’?
A: The idea we entered for POSCO’s IMP was VACE (Veterinary + ACE). It’s a web-based EMR (Electronic Medical Record) service. The number of companion animals in Korea surpassed 10 million –we used to call them pets in the past, but these days, they are our companion animals, especially cats and dogs. There is an added demand for proper medical care for these new human companions.

Nowadays, most vets are familiar with electronic charts. There is a program to run these electrical charts. To install and run the program, however, we need a computer, which is incredibly inconvenient for the practice. Through VACE, we demonstrated how we could help improve the current electronic chart system. VACE can also help standardize medical information, guarantee open access through the cloud. What really worked for the IMP was our ability to draw a specific picture of how cutting-edge technology can transform the landscape of current veterinary practice

<‘VACE’ Simulation (in Korean)>

l Towards the Environment Where Animals Can Thrive

Q: What sets your company apart from others in the current industry?
A: Exclusively from a technological perspective, our system is capable of standardizing and analyzing animals’ bio-data and medical records. We also have an EMR solution system as well as a medical monitoring system for animals. Health and Medicine provide more convenient EMR system, but ultimately we aspire to establish a holistic solution for a veterinary practice – from distribution, accounting to human resources.

If we can bring innovation to the current labor-intensive veterinary practice where data sharing and analysis are more readily available, we can help alleviate the workload for the medical professionals so that they can solely focus on the job they are called to do.

Q: How would this help improve the daily practice of the veterinarians?
A: The current EMR system requires installing a program in all the computers in the clinic, whereas the web-based electronic chart we provide can be accessed from anywhere – from smartphones, tablet PCs as well as from desktop computers. Such a wider application and accessibility simplifies the tasks for medical professionals as they can access and record medical information from various devices. Free from distraction, they can solely focus on taking care of animals.

Q: And for the owners?
A: Imaging having to change a doctor for your animals, be it emergency or else. Currently, medical records are not shared across animal clinics, making it difficult for vets to make an accurate diagnosis. With our web-based EMR, essential medical records are readily available, and inter-clinic data transfer is made simple. As a result, we can help establish a more convenient and better health care system for our animals.

Q: Quite an improvement from the current system, correct?
A: Oh yes. For animal welfare, regular check-ups and preventative care are crucial. Our EMR system enables just that. We can constantly communicate with the medical professionals on the conditions of our animals. Ultimately, such establishment can create an environment where animals can thrive – with their human companions.

l Animal Health Care, Synergistic Cooperation

Q: Where is Health and Medicine headed to, and how do you plan to achieve that vision?
A: Once we compile sufficient medical records, we want to venture into follow-up services like medical insurance for animals. We also want to help provide preventative care. Rather than competing in the existing market, we want to pioneer a new market. The ultimate goal is to establish a sustainable ecosystem for the mutual benefits of different industries.

Q: To that end, do you have any specific business ideas at the moment?
A: On top of VACE, which is a web-based animal care solution, we are thinking V2-Solution, a smart interactive solution designed exclusively for veterinary clinics. There is also ‘Weedle,’ which is a health and lifestyle service for both the animals and the owners.

What we showcased at the POSCO IMP, the next-generation EMR system, is slated to launch in Korea this October. It’s currently undergoing rigorous testing. We’ve been also preparing for the global launch, especially in Asia – Taiwan, China, and Japan. We have been networking with clinics across Asia for years.

Q: Please share memorable moments from the 17th Idea Market Place.
A: When I first workshopped the business idea, I realized I had to go back to the drawing board and start all over. It was three nights of non-stop research and analysis – feedback after feedback. This painful yet rewarding process gave me an opportunity to deliberate on the business model. It also clarified the vision of our company. I would like to use this opportunity to thank all my mentors, especially Do-Young Chang. I also want to thank everyone at the POSCO Venture Valley for their utmost support and encouragement.

Hyun-Wook Kim had been dedicating all his professional life to improve animal health care. Just three months after starting his company, Health and Medicine, his 20 years of dedication was rewarded at POSCO’s 17th Idea Market Place. POSCO applauds Kim’s persistence and endeavors to create a system that can help deepen animal-human companionship.

During the event, 16 startups exhibited their prototype products and presented their business plans – these companies had been shortlisted by POSCO last February. Since February, the companies had been perfecting their products and business plans through 1:1 coaching and mentoring sessions.

TENELEVEN, a software development company, came in the top amongst the 16 shortlisted contenders. POSCO Newsroom sat down with the CEO of TENELEVEN and discussed the company’s journey through the process.

▲ Ho-Young Lee, the CEO of TENELEVEN – the Best Startup of the 17th Idea Market Place

l “We Failed Twice, but Giving up Was Not an Option.”

Q: Congratulations for coming in the top at the 17th Idea Market Place. Please tell us a little bit about yourself, and your company, TENELEVEN.
A: Thank you. My name is Ho-Young Lee – at TENELEVEN, we are currently developing “BUILDIT” an artificial intelligence (AI) design service for architecture. I started the company with two colleagues in 2014 when mobile games were booming. We were determined to succeed and created a mobile game using the hydrodynamics theory. We built a physics engine to create the game, but it wasn’t very well received. After the initial failure, we managed to hold on by taking on various consulting projects. It was during this period I came up with a business idea on creating an automated building space distribution with optimal floor space and good amount of sunlight. That’s how the BUILDIT came about.

Q: What prompted you to participate in this year’s IMP?
A: Actually, this is our third try. TENELEVEN didn’t even make the initial cut for the first two tries. This time, when we made it through the initial process, that in itself was quite an achievement. After that, I was delighted to receive positive feedback at the presentation right before the IMP event, and even more when we were declared the final winner. I spent months fine-tuning the program, and going over the business models over and over with my mentor – the mentoring session was immensely helpful in processing how the technology can be applied. Giving up was not an option and I am extremely happy to finally see some results.

Q: What does TENELEVEN specialize in?
A: A good place to start would be ‘BUILDIT CLOUD’ and ‘BUILDIT PRO’. BUILDIT CLOUD is an architectural AI that helps to produce layouts with maximum floor space, number of households, and amount of sunlight. The cloud service allows the users to access it anytime anywhere with an internet connection. The calculated results can be printed in various report forms and data – be it CAD drawings, amount of sunlight per household, estimated construction costs, floor space ratio, etc. BUILDIT allows users to review business feasibility and help them make effective decisions in a timely manner.

Q: What about BUILDIT PRO? What does it do?
A: BUILDIT PRO is a tool that edits the results derived from BUILDIT CLOUD. With BUILDIT PRO, you can modify and switch the locations of a building, floors in three-dimension. Rotating function is also built in. It even takes legal details like building codes into consideration. It also visualizes actual building and terrains, allowing users to see the potential views and the scopes of sunlight and shadow coming from the neighboring buildings.

While developing BUILDIT, I needed expert background knowledge in architecture, geography, computer science as well as urban planning. I think the technical barriers might be quiet high for those getting introduced to the BUILDIT because it utilizes the Big Data, artificial intelligence and AR/VR on top of architectural design. The IT experts at TENELEVEN come from diverse backgrounds, and I think that’s one of our strengths.

l BUILDIT Creates Economic Values of 30 Billion KRW

Q: What projects have you worked on using BUILDIT?
A: We participated in an urban redevelopment project in Seoul’s Bulgwang area. Using BUILDIT, we came up with 700 design plans, finally settling on a plan with optimal floor space and sunlight. The clients’ biggest concern was to come up with the best number of households for the buildings. We were able to offer the best number for them – 100 more households compared to other contenders, and that’s how we got selected. The sale price for each housing unit is roughly 300 million, which means we ended up creating economic values of 30 billion KRW by coming up with that number 100.

Q: What is the industry reaction, especially in the architecture communities?
A: Architectural communities seem to regard it as an effective solution. We are hoping BUILDIT will help alleviate the tedious and repetitive tasks involved in the architecture design process. A HongIk University professor expressed his amazement at how someone with no architectural background, like me, created BUILDIT. He said it was the type of program professional architects were eager to build. I actually come from a computer science background, but at least in architectural communities, I am considered somewhat of an architectural AI expert.

Q: Finally, a word on where the TENELEVEN is headed to next.
A: I’m imagining a future like Katerra, a US-based design and technology construction startup. They are bringing innovations to improve and rid of inefficient processes in architecture. Eventually, I would like to branch out beyond architectural design – we want to grow to become a construction tech company optimizing not just the design but the entire processes involved in design and construction. We think the pre-fab construction is especially compatible with AI technology, so we are planning to build modular buildings using pre-fabs.

Since the foundation of TENELEVEN in 2014, the company has been tirelessly running towards their goal. With the IMP, CEO Ho-Young Lee for whom giving-up was simply not an option even in the face of many failures, produced a valuable result. With Lee’s dedication and persistence, TENELEVEN’s technology is likely to create positive impacts for POSCO and for Korea.

The Idea Marketplace (IMP) is POSCO’s representative venture start-up support program which connects venture companies with investors, or attracts direct investments by helping prospective venture businesses and investors build a network and compare with other compelling venture ideas.

POSCO CEO Ohjoon Kwon gives a speech at the 12th Idea Marketplace, addressing economic improvements through partnerships with local industries and fostering the growth of promising venture companies.

In a welcoming speech, POSCO CEO Ohjoon Kwon said, “The most obvious way to drive future growth in our slowing economic environment is to discover innovative ideas and commercialize them. I will actively support the creation of jobs that are combined with the local economy of Gwangyang city.”

POSCO selected and nurtured ten venture companies in their support program this year. Their fields ranged from medical, the internet of things (IoT), music to big data. They were verified by outside experts for their business feasibility and received mentoring in company briefing sessions for ten weeks.

During the IMP, an IR event was held for investors, and a prototype exhibition hall took place alongside. The event involved representatives of venture companies engaging in one-on-one Q&A sessions with members from the judging committee.

POSCO CEO Ohjoon Kwon, center, talks to guests at the Idea Marketplace venue. From right, Weonpyo Sun (president of the Yeosu and Gwangyang Port Authority), Hyunbok Jeong (mayor of Gwangyang) and Seongho Park (director of the POSCO Creative Economy Promotion Team).

In this Idea Marketplace event, the Excellence Prize went to Futures Bio Works (CEO Woosoon Chang), for its development of a shape memory polymer microneedle vascular anastomosis device. The company Algorigo (CEO Gilhwan Cha) took home the Excellent Start-up Prize for building a smart posture tracker platform that helps people to develop healthy sitting habits.

Since 2011, POSCO has selected and fostered 132 companies, 59 of which have received direct investments of approximately KRW 9.2 billion from POSCO. The amount of foreign investments the growing companies has attracted reached 59.4 billion won, which contributed to the creation of jobs for 572 people.

Prospective business founders or venture companies that want to take part in the POSCO Idea Marketplace can apply for the program at any time via its website: http://www.poscoventure.co.kr.

Nurturing and Supporting 14 Startups This Year Through Idea Marketplace

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