Scrapping FTA to Damage U.S. more than Korea

https://korean-machinery.com///inquiryScrapping the free trade agreement (FTA) between Korea and the United States will damage the U.S. more than Korea as the drop in U.S. exports to Korea will be steeper than the fall in Korea’s exports to the U.S. Instead, the U.S. is likely to demand a partial revision, including reintroduction of a merchandise processing fee (MPF), a think tank said recently.

The Korea Institute for Industrial Economics and Trade prepared the report on how changes in the Korea-U.S. FTA (KORUS FTA) will affect exports and imports. The Ministry of Trade, Industry and Energy requested the report earlier this year following U.S. President Donald Trump’s inauguration.

Trump has been criticizing trade deals, including the one with Korea, as “job killers” since he was campaigning for the election, prompting speculation the U.S. will push for the deal’s renegotiation.

The institute said there are three possible scenarios for the KORUS FTA: the U.S may demand a total scrapping or partial revision or maintain it.

If the bilateral deal is scrapped, the two countries will apply tariffs according to the most favored nation (MFN) treatment of the World Trade Organization (WTO). As a result, Korea will apply tariffs between 4 and 9 percent and the U.S. 1.5 to 4 percent. Both now apply near-zero tariffs under the KORUS FTA.

If tariffs rise because the deal is scrapped, Korea’s exports to the U.S. are expected to decrease by $1.3 billion while U.S. exports to Korea will plunge $1.5 billion. Since it means the U.S. trade deficit with Korea will increase by $200 million, the institute said it is unlikely the bilateral deal will be dropped.

The U.S. may choose to maintain the KORUS FTA and resort to other measures to restrict Korea’s exports. For instance, it may strictly apply a country-of-origin clause in the deal. The institute expected small and medium enterprises to be hit hardest because it is costly for them to meet this clause.

If the U.S. strictly applies the clause, it is likely to decrease Korea’s exports by $400 million. But the report notes that the Trump administration would have no political gain if it leaves the deal as is.

The institute expected the deal’s revision is the most likely scenario. In that case, the U.S. may want to revise the MPF exemption clause. U.S. Customs charges MPF on imports, but the KORUS FTA exempts Korean goods. If the U.S. levies MPF on Korean goods, it will increase their price. Korea’s exports to the U.S. are then expected to decrease by $200 million, according to the institute.

However, some experts doubt the MPF will be the target since the U.S. exempts it in most of the FTAs it has signed. And it hasn’t mentioned the MPF.

The United States Trade Representative (USTR) noted in a report that “Increased access to Korea’s automotive market for U.S. automakers remains a key priority for the United States.”

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The First Appearance of Ultra-compact Electric Car Model in Korea for Road Driving

https://korean-machinery.com///inquiry[INQ. NO. 1705M22] Daechang Motors recently launched an ultra-compact four-wheel-drive electric car, DANIGO, by completing its development and implementing road test driving. This is the first time that an ultra-compact electric car model for road driving has been introduced in Korea.
Thus far, most of them were made in China, electric scooters, or remodeled electric cars. The development of DANIGO was based on accumulated technology related to electric vehicles and expectations of higher demand for ultra-compact electric vehicles through cases such as Europe and Japan.
Oh Chung-gi, the CEO of Daechang Motors, established the company in 2010. This is the second establishment. Mr. Oh, also founded the display manufacturer, ‘Decktron’ and has led the company for more than 10 years to make it become an SME with annual sales exceeding 100 billion won. He sold his entire stake a few years ago and entered into the electric car market. As an engineer, he is confident that he will be able to compete with small and medium-sized enterprises (SMEs) in the field of electric cars.
The recently launched DANIGO, is small but offers sufficient space and minimized inconvenience. It looks very cute when viewed from any side, and its round shape is enough to draw attention of passers-by. ‘DANIGO’ was developed with a focus on overcoming the disadvantages of the Renault Twizy of Samsung. While it is an ultra-compact electric car, it is equipped with an air conditioner inside the vehicle, as well as HAC function to prevent the vehicle from sliding back on hills when the foot is removed from the accelerator.
DANIGO weighs a mere 450 kg, including battery. It has excellent battery and driving performance. As it is equipped with a 7.5 Kw motor, it has a maximum speed of 80 km/h. It is equipped with a cylindrical compact battery, exclusive battery management system (BMS) and battery display indicator (BDI). It is equipped with 560 LG Chemical’s latest 11.8Wh class (3.2Ah) cylindrical batteries (model name: 18650) with a capacity of 6.6kWh. It can be driven up to 100 km with one charge; it takes about one hour with a fast charger, while it takes 3.5 hours using a general 220V electric cord for home use.
It occupies one-third of parking space compared to an ordinary sedan.
It was the first ultra-compact electric car that is equipped with a rear camera to ensure convenience and safety when reversing or parking, and made airbag and ABS brake for options to meet the safety needs of customers.

Indoor and outdoor temperatures and remaining driving distance are also displayed using CAN communication that checks over-voltage, under-voltage, and discharge. The size is 2,300 X 1,190 X 1,485 mm (length x width x height). There are three types of doors to choose from: full door, semi-door and bar-type door, depending on the customer’s circumstances and usage.
It is equipped with an air conditioner that boasts optimum energy-efficiency for heat in summer and to prevent any possible risk due to moisture and it also has a bright headlight audio. A tablet PC is also installed to maximize the convenience of the driver.

Despite the added function that does not exist in Twizy, the price of the vehicle is about 10 million won. When meeting the criteria of subsidy for electric car which is scheduled to be released this year by the Ministry of Environment, it is expected to be able to purchase it for 6 – 7 million won. It has a low fault frequency due to more than 50% simpler structure compared to general sedans. Up to 10,000 won is saved in electricity costs when driving 1, 500 km, which is about 1/15 the cost of driving that distance with a compact car.


He explained “It’s equipped with conveniences such as air conditioner, hill-start assist, rear camera, etc. by supplementing the weaknesses of the European ultra-compact electric car.” and “It will be useful for electric car sharing thanks to its advantages for driving in the city central such as parking at a cheap price.”
This model will also be released on the European market. Mr. Oh continued, “Europe, which has strong pragmatism, already is showing increasing demand for ultra-compact electric cars. We have already started to cooperate with global companies to advance into Europe by taking advantage of its competitiveness to overcome the weaknesses of the European ultra-compact electric car market.” He said, “The technology and experience in manufacturing electric cars such as golf carts and low-speed electric vehicles are strong motives for Daechang Motors to expand various businesses related to electric cars in future.”

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Automotive Parts

https://korean-machinery.com///inquiry[INQ. NO. 1705M21] Duckil Industry manufactures various kinds of automobile plastic parts, and switch parts. Automobile plastic parts are equipped with housing that delivers vehicle’s power and signal from terminal to terminal and TPA (Terminal Position Assurance) which locates the terminal’s position. There are two types in the vehicle assembly: the Wire-to-Wire type that connects the other part’s connector; and the Wire-to-Unit type that delivers power and signal to other devices inside the car.
The company possesses an overall connecting solution that connects automotive electronic systems. This system is developed by engine sensors and connector for power and signal. The automobile switch part by Duckil Industry features high quality and high performance. This helps you to drive very comfortably; for example the driver’s seat is tilting up/down, going back/forth and supporting your lumbar region.
Duckil Industry was honorably selected as a precision part manufacturer by the Korean Ministry of Trade & Industry. Duckil Industry has developed cutting-edge injection molding machines and high-technology testing equipment, and manufactures 500 different kinds of automobile electric power supply parts and communications connectors. Duckil Industry has become a leading automobile parts manufacturer in the Korean market with great support from customers.

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Cold-forged Parts for Automobiles

https://korean-machinery.com///inquiry[INQ. NO. 1705M20] Founded in 1954, Taeyang Metal has been professionally engaged to produce and suppy top-quality cold-forged and precision-processed parts for automobiles.
Long years of accumulated business experience makes it possible for the company to cover a wide variety of cold-forged parts for automotive engines such as cylinder-head bolts, bearing-cap bolts, connecting rod-bolts, fly wheel- bolts, crank shaft pulley-bolts, etc. and thus allowing the company to play a leading role in the development of the automobile industry in Korea.
The current flagship local clients include Hyundai Motors, Kia Motors, etc. and international customers include GM, Sankei, Chrysler etc.
The proved global competitiveness originates from its in-house design capabilities for high tensile strength bolt, precision threaded fasteners and components and equipped with accredited fastener testing & calibration laboratory.
After accomplishing the accumulated export performance of $30,000,000 in 2004, the company has started accelerating its drive for expanding its offshore presence while aggressively establishing foreign corporates in India, the U.S.A. and a factory in China. As a recent noteworthy move, the company started expanding its business activities by delivering its high-class products to wind energy enterprises in Korea.
As of 2014, the company has witnessed significantly improved export performance, up 23 percentage points from the year before, thanks to an increase of exports to the U.S.A., etc. backed by the growing pace of the global economy. Taeyang Metal’s active outreach activities in foreign markets propelled its remarkable contribution to the nation’s export drive, as of 2013, recording US$100 million in export performance, following its US$ 30 million in 2004, US$ 50 million in 2006, and US$ 70 million in 2008.

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Making Remanufactured Automobile Products More Reliable

https://korean-machinery.com///inquiry[INQ. NO. 1705M18] Taeil Precision Industry Co., Ltd. is a leading company in the development of the Korean auto industry. The company started its business in the 1980s when remanufactured automobile products were not recognized among many people. Despite a prevailing prejudice against remanufactured automobile products, Taeil has expanded its foundation for producing remanufactured automobile products based on the opinions and satisfaction of real users.
It has thus developed into a representative company that defines the quality management system for remanufactured automobile products. Greenhouse gas emissions and the global warming triggered by them drew TAEIL into the spotlight. The company is being reborn as a social enterprise that loves nature and people together with its value as an eco-friendly carbon-free enterprise. TAEIL is securing quality equivalent to the quality of new products by way of innovative manufacturing processes.
The ALT-98, a representative alternator model is the first automated inspection system that can perform multiple tests on all models. This product automatically scans the specification of a product to be inspected and can input more than 4,000 kinds of data. This model does not have a limit in the quantity of products that can be inspected.
The all new ALT-198 was developed base on 16 years of testing the ALT-98. Available with 11 kW (15 HP), 15 kW (20 HP) or 22 kW (30 HP) variable speed motor options and 300, 450 or 600 Amp Regenerative Load Banks, this tester is great for a variety of alternator testing applications for OEMs and remanufacturers, including end-of-the-line production testing, performance studies, endurance testing, and warranty evaluation.
The ST-16 Start Motor Tester is designed to provide remanufacturers and OEM manufacturers with fast accurate and detailed tests of starters. This model is designed for precise testing for high-volume applications at the touch of a button. Solenoid timing is measured on the unit allowing the machine to detect problems related to specification components or faulty assembling.

 

Mutual Growth with Society

Everything from disassembly to manufacturing products with recyclables involves human labor at TAEIL. The training of skilled workers provides more long-term jobs than other companies. As a company that coexists with society, its value is expanding.
TAEIL is exporting its products as brand Taeil Korea products that have undergone a carefully selected remanufacturing process rather than a simple recycling process. In addition to expanding the domestic market, the company has established itself as a global brand through the exploration of overseas markets by actively advancing into offshore businesses and contributing to the growth of the nation by having its product quality, economic feasibility and environmental efficiency recognized.

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The Future of Construction Equipment & Technology! CONEX KOREA 2017

https://korean-machinery.com///inquiryKorea is actively producing general-purpose complete units of excavators, forklifts and loaders, but it has relied on imports for road equipment such as rollers, compactors and batching plants, lifting equipment like mobile and other type of cranes and RTLT, earth moving equipment like dozers, graders and dumpers and specialized equipment like snowplows, creating a lot of import demand for finished vehicles.
In 2017, Korea’s construction equipment production was 9 billion USD, marking an average annual increase of 10.1% in the last decade. Such remarkable growth has made it one of the nation’s key industries. In Korea, various global giants such as Doosan Infracore, Hyundai, and Volvo are manufacturing a range of vehicles including excavators, loaders, and forklift trucks. Also a number of established companies such as Soosan, Everdigm, and Junjin are developing and manufacturing a variety of vehicles and attachments like concrete pump trucks and cranes.
As a producer of 100,000 vehicles annually, Korea’s construction equipment industry imports quality parts and materials from the US, Europe, Japan and China to strengthen their quality competitiveness. Hence the Korean construction equipment industry is a very attractive market for component manufacturers overseas.

 

• ‌CONEX KOREA 2017
Exhibition Period : 24 – 27 May Exhibitors : 250 companies Expected Number of Visitors : 37,000

Exhibit Categories
– Earthmoving Equipment : Excavators, Loaders, Dozers, Scrapers, Graders, etc.
– Transportation / Cargo-handling Equipment : Forklift Trucks, Cranes, Dump Trucks, Trailers, etc.
– Road Construction / Asphalt Equipment : Rollers, Asphalt Mixing Plants, Asphalt Finishers, etc.
– Concrete Equipment : Concrete Pump Trucks, Concrete Batching Plants, Concrete Mixer Trucks, etc.
– Specialized Equipment : Snowplows, Gravel Excavation Equipment, Aerial Work Platforms, Washers, etc.
– Attachments and Parts : Hydraulic Breakers, Crushers, Grapples, Rippers, Compactors, etc.
– Construction Materials : Building and Building Materials Machinery

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INT’L FACTORY AUTOMATION SYSTEM SHOW 2017 to Kick Off

https://korean-machinery.com///inquiryAn opportunity to catch up with the latest development trends in global automation precision equipment

The 13th International Factory Automation System Show 2017 will be held from June 13-16, over a four- period at Changwon Convention Center. Being held in Changwon, one of the largest exhibitions held outside the metropolitan area of Seoul, it has been a symbolic event representing the mecca of the high-tech industry of Korea.

Marking its 13th year, the Fair aims to increase the international competitiveness of the industry by boosting demand for the exportation of smart factories, automation equipment, facilities, and related equipment, exchanging information, and technology development. Every year, it serves as a venue for exchanging information on technology and markets among participants and searching for new business partners.

Organized by KOAMI and held by the Gyeongsangdam-do and Changwon-si, the exhibition is sponsored by some of the most representative companies and organizations in various industries in Korea. Other affiliated events such as seminars and lectures will also be held along with the event.

This year, as many as 165 exhibitors from 13 countries have signed up for the exhibition. Although there were more exhibitors of 184 from 18 countries last year, 380 booths are expected to be installed, remaining almost the same with 387 booths last year.

The event organizer is expecting to achieve last year’s outcome of 20,000 visitors and business meetings worth USD550 million (meetings worth USD500 million and deals worth USD 50 million) during the exhibition this year.

A total of nine themed exhibitions along with a special exhibition will be held displaying FA equipment focusing on innovative process management solutions, sensors and control equipment, network systems, designing and process analysis programs, and measuring instruments for smart factories. The exhibitions will also feature metal processing machinery, molding tools, hydraulic pressure equipment, and part materials to respond to the demands of the global market.

An export consultation session with vendor handlers overseas will also be held to satisfy the event’s aim to increase exports. For Korean companies to find new buyers especially in countries like India and Japan with high demand for nuclear, chemical and plant equipment, vendor handlers and procurement managers from ten well-known international EPC companies have been invited to have one-on-one meetings with 60 Korean companies. Customized consultation sessions with 20 prospective buyers overseas recruited by the exhibitors will be held at individual booths.

“Information and communications technology (ICT) conversion, the key to change in the global manufacturing paradigm, is triggering the fourth industrial revolution,” an official from the KOAMI said. “You’ll be able to see the trends in automation technology that is evolving with new technology such as cloud computing, big data, and Internet of things.”

 

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Representing Korea’s Machinery Industry

https://korean-machinery.com///inquiryThe Korea Association of Machinery Industry (KOAMI) was founded in 1969 in accordance with the Machinery Industry Promotion Act. Since its foundation, KOAMI has been a trusted bridge between the Korean government and machinery industry, contributing to the advancement of the Korean machinery industry. Today it continues to serve as an important organization representing the machinery industry in Korea.

With support from the government and the participation of member companies, KOAMI has brought tremendous achievements to the advancement of the industry; it has been part of the development of core technology, pioneering overseas markets, initiatives to increase the export of Korean machinery, and promoting the sharing of mutual interest among the members. Moreover, KOAMI provides machinery companies with professional services involving support to policymaking and research activities, technology development, and exportation in response to the government’s policies. It also provides them with useful information on the machinery industry and training.

Since its foundation, KOAMI has never stopped striving to develop the industry and played a significant role for the machinery industry to become the world’s eighth largest exporter. With its expertise accumulated and trust earned over the past 49 years, KOAMI will continue to dedicate itself to the advancement of the machinery industry in Korea. As a companion to the industry, it plans to continue providing the machinery industry with support so that it can drive growth and play its role as the largest exporter of machinery in Korea.

Business Areas

– ‌Business to promote the machinery industry and members’ interests
– ‌Support for the machinery industry to develop technology
– ‌Business to promote machinery exhibitions, machinery, parts, and materials technology, exportation, and international cooperation
– ‌Research and publication on promotion of the machinery industry
– ‌Informatization of the machinery industry and creation of knowledge-based businesses
– ‌Businesses required to nurture talents tailored to the region and industry
– ‌Support related to quality guarantee and warranty of machinery, parts, and materials
– ‌Projects to establish a foundation for nurturing cutting-edge molding businesses
– ‌Advancement of machinery equipment and promotion of its exportation
– ‌Support to issuance of certificates on design, test, and inspection for SMEs
– ‌Collaboration between large enterprises and SMEs
– ‌Projects on advancement of the machinery industry commissioned by the government
– ‌Operation and rental of KOAMI’s properties

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Asia’s Largest Renewable Energy Multi-Complex to be Built in Dangjin

https://korean-machinery.com///inquiryA group of South Korea’s public and private energy suppliers will chip in a total of 257 billion won ($227.4 million) to build Asia’s largest renewable energy multi-complex in Dangjin, South Chungcheong. The 1.12 million square meter complex is expected to consist of various renewable energy-related facilities including a solar energy complex with 80 megawatt (MW) capacity.

Four companies – SK Gas Co., SK D&D Co., Dangjin Eco Power Corp., and state-owned Korea East-West Power Co. recently signed a memorandum of understanding to invest a combined 257 billion won in creating a renewable energy multi-complex on a 1.12 million square meter site in Dangjin. The complex is expected to be Asia’s largest renewable-related facility.

According to the companies, the multi-complex will have an 80MW solar energy complex, a 160 megawatt-hour (MWh) energy storage system complex, and other fuel cell and wind power related facilities. There will also be facilities on a 70,000 square meter site like a theme park devoted to raise public awareness for renewable energy. Part of the investment will also include installing a solar power plant on water and wind power generator at a nearby island to create a self-relying energy space.

The multi-complex will be aimed at providing visitors the opportunity to experience various environmental-friendly energy facilities and eventually turning into a tourist attraction.

Currently, Korea East-West Power, a subsidiary of Korea Electric Power Corp., operates eight coal power plants with total 4,000 MW capacity in Dangjin. SK Gas is also in its final stage of receiving approval by the government to newly build two coal power plants with 1,160MW capacity in the area by 2022 through its subsidiary Dangjin Eco Power.

Korea East-West Power, which also operates eight thermal power plants, has plans to invest 2.5 trillion won in improving environmental facilities with an aim to reduce pollutants by 50 percent by 2020 and 74 percent by 2030. In particular, the power provider plans to invest 470 billion won to move two outdoor coal yards indoors by 2024 to completely get rid of scattering dust.

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Automatic Machine for Checking the Weight of Packaged Commodities

https://korean-machinery.com///inquiry[INQ. NO. 1705M14] Founded in 1989, Fine Mechatronics now owns the largest share in Korea in the measuring and weighing automation field, especially weight automatic check weigher, metal detector, indicator field based on its excellent technology and field experiences and is favored by consumers and dealers for its outstanding after service.
A checkweigher is an automatic machine for checking the weight of packaged commodities. A 10-inch color TFT LCD touch controller is attached. Automatic speed change depending on the size of production can monitor real-time using smartphone application. The current target markets for the company include China, the United States, Turkey, Russia, India, the Middle East, Southeast Asia, Russia, Western Europe, Northern Africa, Canada, etc. For this year’s participation in overseas fairs, Fine Mechatronics sets its goal of attracting customers, maintaining links with customers, and acquiring agents. Annually, the company accomplishes income of US$10 million.

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