SHANGHAI, CHINA - At the Asia Electronics Exhibition in Shanghai (AEES 2012), a stream of international buyers paid a visit to the pavilion of Hoe Sung Coil Parts (hereafter referred to as HSCP,http://hoesung.co.kr), which has participated in the AEES for nine consecutive years in order to take on the Chinese market by grasping trends in China’s domestic market.
This Korean parts maker’s flagship product is RF modules that are inserted into TV, mobile phones, radio sets, etc. Founded in 1975, HSCP is Korea’s first-generation coil parts maker that has consistently strived to upgrade its technological capability. Besides, HSCP is the only Korean company that produces both RF modules and power inductors. As for the production of power inductors, HSCP has continued to revamp its technology, thereby taking rank with well-established Japanese rivals.
Though HSCP is a latecomer in the power inductor sector, it is scheduled to supply the first batch of its power inductors in the second quarter of 2013. The reason why Hyundai Mobis, one of Korea’s leading auto parts purveyors, picked HSCP as its business partner is because HSCP has already been packed with sustainable technologies in the braking and controlling field by successfully developing components slotted into SCC, MED, ETB, etc. HSCP’s winning a contract from Hyundai Mobis has definitely caught the eyes of Mando Corporation and Daesung Electric. CEO Dae-hwan Jeong said, “Once we are registered as a Hyundai Mobis vendor and the shipment of auto parts to Hyundai Mobis is finalized, our business will gain a firm footing in this sector. “The brand image of HSCP is very good in the Asian market and we are the undisputed leader in video noise filters,” Ceo Jeong added.
HSCP was not on a roll from the beginning. When its founder, the father of CEO Jeong, was laid low by illness, leaving KRW 700 million in debt to Jeong, he was only 23 years old. Having struggled to keep his business open, CEO Jeong got his first break by partaking in Samsung Electronics’s technology standardization project, which was implemented part of Small and Medium Business Administration (SMBA)’s technology innovation project. HSCP supplied Samsung Electronics with TV parts which were rated as an improvement on parts manufactured by Japanese companies. Since then, HSCP has been placed on the vendor lists of LG Innotech, Japan’s Hitachi, Alps Electric co. and so on. As a result, word of mouth kicked in, bringing more buyers, both domestic and international, to HSCP. Informed of HSCP’s proven technological prowess, a slew of international buyers from the US, China, Taiwan, Hong Kong, Southeast Asian nations, Israel, etc. have been knocking on the door of HSCP.
Consequently, HSCP has been posting sales growth of over 50% annually. CEO Jeong predicts HSCP’s sales for the next year will double to KRW 5 billion. Almost 30% of HSCP’s business is being done overseas with its main focus on the TV video sector. HSCP’s exports are largely headed for the Chinese and Indonesian markets. HSCP is poised to set its sights on smart grids (one of the Korean government’s policy projects) and the auto business next year. On top of that, as HSCP was chosen as the exclusive supplier of parts in Korea Electric Power Corporation (KEPCO)’s smart grid project, HSCP’s sales is expected to markedly pick up.
Repeaters and inductor transformers inserted into modules inside gaugers are needed in carrying out smart grid projects. CEO Jeong reckons HSCP has the potential for raking in KRW 1 billion in sales in the smart grid market. CEO Jeong said, “Individual happiness will eventually lead to booming business and then to a rise in gross national happiness. I hope to turn HSCP into a company where employees work happily. To that end, salary should go up. Competent, highly-skilled employees can command a high salary and their excellent capabilities combined will translate into smoother communication and faster work speed. As usual, all the members of employee-caring HSCP are now putting their heads together to take their company to new heights.