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For your particular use case of a large mesh which is mostly static, take a look at the runtime mesh component plugin (https://github.com/TriAxis-Games/RuntimeMeshComponent) which should make collisions more optimized than with the procedural mesh component plugin.
Afaik, there is currently no way to customize unreal's physics handling. That might come when chaos is fully ruled out, but at the moment (at least in 4.27), unreal is in an awkward state where it works with both PhysX (whose source code is not open), and chaos (whose source code is accessible in unreal's source, see https://github.com/EpicGames/UnrealEngine/tree/release/Engine/Source/Runtime/Experimental/Chaos/Private/Chaos). With a bit of skill you might get away with some simple editing of chaos source code (Setup some delegate when a collision is detected, then run your own collision response). To have a custom response to a collision, the "easiest" way would be to either write your own, or to implement an open-source third-party physics engine like BulletPhysics (see https://www.stevestreeting.com/2020/07/26/using-bullet-for-physics-in-ue4/)