Dwelling, a Smart Shelter Specialist Company, Signs MOU with Bayangol District Office in Ulaanbaatar, Mongolia... Plans to Improve Air Quality in Ulaanbaatar City with Smart Bus Shelters and Rest Areas... Aims to Expand Citywide after Pilot Project, Total Project Scale Approximately 350 Billion KRW
[Asia Economy Reporter Jongil Park] Dwelling, the leading smart shelter company in Korea, led by CEO Jeon Jeong-hwan, is expected to transfer Seoul’s advanced bus stop technology to Mongolia.
The industry views this as an opportunity to gauge the overseas export competitiveness of the ‘K-Smart City’ initiative.
On the 16th, Dwelling announced that it signed a tripartite Memorandum of Understanding (MOU) with Bayangol District Office of Ulaanbaatar, Mongolia, and Sarangwa Seonhaeng Co., Ltd., focusing on “mutual cooperation for implementing indoor and outdoor air quality improvement and smart bus shelter projects in Ulaanbaatar city.”
The MOU ceremony took place on the 12th at the Bayangol District Office building in Ulaanbaatar, Mongolia, attended by Somiya Batar, head of Bayangol District Office, CEO Jeon Jeong-hwan (Director Kim Kyung-beom, Daecham), and CEO Lee Kang-min of Sarangwa Seonhaeng.
According to the MOU, ▲ Bayangol District Office will secure and promote the budget for projects such as smart bus stops and air quality improvement in Mongolia ▲ Dwelling will supply and install smart bus stops suitable for the local environment of Ulaanbaatar ▲ The social enterprise Sarangwa Seonhaeng will actively cooperate with both Bayangol District and Dwelling for this project.
Initially, approximately 5.1 billion Mongolian Tugrik (2 billion KRW) will be invested to install four smart shelters at key traffic points in Ulaanbaatar as a pilot project, with plans to expand to 400 bus stops throughout Ulaanbaatar over the next 10 years. The total project scale is estimated at around 900 billion Mongolian Tugrik (350 billion KRW).
Dwelling plans to invest between 30 billion and 50 billion KRW in the production and installation of smart shelters, expecting annual advertising revenue of 20 to 30 billion KRW from this.
Dwelling, which has attracted industry attention with its air care solutions such as ultrafine dust removal, air purification, and sterilization, secured the qualification as a pilot operator for Seoul’s smart shelter project last year. It has installed and manages smart bus stops in major hubs including Sungnyemun, Hongdae, Hapjeong, Konkuk University, Magok, Cheonho, and Gupabal.
Last month, Seoul opened 20 additional ‘Green Smart Zones (Fine Dust Free Zones)’ on Dosan-daero and Hakdong-daero in the Gangnam district, and is conducting smart station projects with leading local governments nationwide. These ‘smart stops’ provide real-time air quality management, heating and cooling, and various advanced technologies along with beneficial content.
The main public transportation mode for 1.6 million Ulaanbaatar citizens is the bus. Although Ulaanbaatar is the capital and political, cultural, and historical center of Mongolia, its public transportation system is widely regarded as stagnant at a 20th-century level.
Ulaanbaatar is classified as a cold semi-arid climate region. With an average annual temperature of -0.4°C and winter temperatures dropping to -30°C, the outdoor environment is harsh relative to its latitude. Traffic congestion during commuting hours is severe, and the need for spaces for public transport users has been consistently raised. It is analyzed that advertising effects using bus stops in Ulaanbaatar’s traffic environment will be significant.
In December last year, the Mongolian government enacted the mid-term task ‘New Renaissance Policy’ for the next 10 years after the pandemic to enhance the efficiency of the long-term development policy ‘Vision 2050,’ which includes projects to replace and develop Ulaanbaatar’s aging public transportation facilities and systems. Accordingly, Ulaanbaatar city reached out to Dwelling, which is leading the smart shelter business in Seoul, known as a public transportation advanced city.
Currently, Dwelling operates and maintains over 1,200 locations including general bus stops, smart shelters, and Green Smart Zones in Seoul. As an outdoor advertising operator, it holds about 4,500 advertising spaces, the largest scale in Korea. The company is preparing for an IPO in the second half of 2023 based on business diversification and revenue growth through transitioning to a Digital Out of Home (DOOH) platform operator and ESG (environmental, social, and governance) management.
Dwelling is also a member of the World Smart Cities Organization (WeGO) through an MOU. Its vision is to internalize and stabilize the smart shelter model domestically before expanding the business to leading cities overseas. This Mongolia project is expected to be a case that reveals Dwelling’s potential for overseas expansion.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
