SBS Biz

■ The Leaders : Koh Young Technology CEO  Koh Kwang-il

 

[KOREA REPORT 는 대한민국 첫번째 글로벌 미디어 채널 SBS CNBC가 한국의 최첨단 기술 소개, 최고의 리더 인터뷰 등 역동적인 대한민국의 참모습을 세계 경제를 움직이는 최고의 경제 채널 CNBC의 글로벌 네트워크를 통해 전달하는 프로그램입니다.]

Welcome back to Korea Report. I'm sure you all know the names Samsung, Hyundai and LG.


They're the Korean heavy weights... leading the global market at the moment. But there are also many SMEs in Korea... whose products are world number one. Today we meet the CEO of one of them. Mr. 고광일... is the head of Koh Young Technology... the current market leader in 3D solder paste inspection equipment. I met him at his office in Seoul to learn about his success.

 

■ Interview

 

Q] Mr. Koh, thank you very much indeed for joining us. I was reading about your company before I came, and was very much surprised by your remarkable performance, how you became the world's number one even though you're not a big-name company. Perhaps we should begin with your brief introduction of Koh Young Technology.

 

A] As you just mentioned, Koh Young Technology is currently the world market leader in the solder paste inspection equipment industry. During the past eight years, our business has expanded at an annual rate of 150 percent. Our clients are mostly world-class IT companies... many of them accounting for the biggest market shares in their respective fields... which enables us to keep our premium pricing strategy.

 

Q] Tell us about that solder paste inspection. Why is it necessary?

 

A] When it comes to producing electronic goods or semiconductors, soldering is a core process. You have to make sure that every chip package is properly connected to attachment points, otherwise you'll end up with serious failures in finished products. The solvent you use here is called solder paste. And how you apply them is said to determine up to 70 percent of product quality. Our solder paste inspection equipment is used to find any flaws in the process.

 

Q] I was very intrigued by your decision in 2002 when you gave up your title as a renowned robotics researcher to this career path. What did you see in this particular sector that you decided to change your life?

 

A] Every engineer has his or her dream to be on top as they strive for the goal. But in reality, we may be successful in R-and-D, while it's hard to see our efforts turning into real products. In 2002, I had a chance to look back on my life. I wanted to leave something for our next generation. I thought, 'I'm doing my best as an engineer but what do I have to give to the world?' Several of my colleagues were thinking the same. So we concluded that we should start a real business, and take not only R-and-D, but also marketing and sales as well as other matters into our own hands. If we fail, no regrets. That's how we began. And as a new startup, we knew it was difficult to enter an existing market. So we looked for a new field, and pretty soon we decided on 3D measurement and inspection system using artificial intelligence, which was fairly new at that time. That was our first step.

 

Q] Now I can see why you were able to become the world's number one in just four years. What was the biggest hurdle? What was the biggest obstacle in reaching that goal?

 

A] Our clients make money from their equipments. One wrong facility investment, the entire business goes down. This is why the market is very conservative. At first, it was very difficult to convince our clients that we had the best technology. They didn't believe us. We were a small company from a small country. That was our biggest hurdle... the stereotype. But I think we were very lucky. There were global leaders who had the eye that saw our potential, and actually made their bets. They didn't care about whether we came from Korea or Japan. As long as we had good technology, they were willing to help us. They even thought they can help us with money. So for us, meeting great people who instantly bought our ideas, was the biggest key to success. I think that's when our fate was determined.

 

Q] Earlier you said your products are 20 to 30 percent more expensive than say, a product made in japan. Do you plan keep that rate... your products with a higher price tag?

 

A] Of course. As long as we can continue to satisfy our clients with customized solutions, I think they will be willing to pay premium prices for our products. Another issue for us right now is whether we can maintain our technological leadership. Currently we have about 180 employees around the world, half of which are R-and-D engineers. So we're spending a lot of money on technological advancement. Currently, I think we are ahead of our rivals by about three years. And considering the pace of our technological innovation, we'll be able to stay in the lead for the next five years, which brings us to the conclusion that we don't have to change our  premium brand strategy for the time being.

 

Q] Mr. Koh, as you know... the word "SMART" is the keyword nowadays in the digital sector. Everything's "smart"... smart phones, smart TV. How does that affect your business?

 

A] Last year, our business grew nearly three fold. About half of our total revenue came from smart phone and tablet PC sectors... while the rest came from automotive electronic industry. This is because the global car industry is also becoming "smart", so to speak. So if the "smart" industry grows, so will our 3D inspection system market.

 

Q] Tell us your next step. Which areas do you think will work as your next growth engine? Do you have plans to expand into other businesses as well?

 

A] Certainly. We take pride in the fact that we grew at an annual rate of 150 percent... with just one item, which is the SPI equipment. We're not stopping here. We're planning to introduce more. Our latest product is called 3D Automatic Optical Inspection system and this one has market potential to grow up to five-fold. So in three to five years, I think this is going to be our main product. Our growth rate will increase accordingly.

 

Q] I'm sure the new product will add to your growing sales. Last year, looking at the figures, your sales jumped by 160 percent. What's your outlook for this year?

 

A] Officially speaking, we tend to be a little bit conservative. Our official goal this year is 100 billion won... about 92 million dollars. But we're striving for a bigger number as we're spending more on R-and-D and boosting our production capacity.

 

Q] Finally, I'm curious about your goal as a CEO. What's definition of a successful business leader?

 

A] My primary goal is to hear from all our clients that by using our products their production process has greatly improved in terms of efficiency. Secondly, I want to make our employees happy both in terms of material sense and as engineers. I want to help them feel the sense of achievement and share a common dream with the company. And lastly, I want to fulfill my social responsibility as a corporate leader. We've been taking part in social activities from last year. And I want to continue helping people in need. In order to do that, the company must be in good shape, which is why we're making every effort to boost our competitiveness.

 

Q] Mr. Koh, thank you very much for your time. Learn a lot. Thank you.