Rising demand lifts mood among Korea’s semiconductor manufacturers

South Korea’s semiconductor industry is looking forward to the third quarter of this year despite the coronavirus crisis and difficult economic environment. According to information from industry representatives, demand is expected to rise, especially for memory chips used in the growing market for contactless electronic devices. Exports of semiconductors from South Korea increased by 22.6 percent in the first ten days of June 2020 compared to the previous year. This is supported by data from Korean customs.

Figures from the Korean Ministry of Industry, Trade and Energy show that in May semiconductor exports rose 6.6 percent, including both memory and non-memory chips. Exports of computer memory (DRAM) increased 17 percent year-on-year. An increase in DRAM prices contributed to the higher value of South Korea’s chip exports. The fixed price for a DDR4 8 GB memory module rose 0.6 percent to $3.31 in May. According to DRAMeXchange market observers, the price has been rising steadily over the past five months.

These confident figures suggest that Korean semiconductor manufacturers Samsung Electronics and SK hynix could report rising profits in the second quarter of 2020 after a negative first quarter result. Analysts expect that the chip industry could largely recover in the second half of the year and return to the level of six months ago. Sales of PCs and mobile devices will also increase in the third quarter as manufacturers try to make up for weak sales in the first six months with special offers and discounts. Another product for which experts predict an upturn is flash memory (NAND). Due to scarce production with higher market demand, the price could rise by about 9 percent, according to a report by NH Investment & Securities.

South Korea is considered one of the most important and innovative industrial nations in the world. To gain market access to this highly technological country, many products imported into South Korea must be tested and certified. The KC-Mark or KC certificate corresponds approximately to the European CE mark and applies to 730 different products, including many electronic products. Since 2005, MPR International has been supporting companies worldwide in the certification of products for the markets of Korea, China, Taiwan and India. MPR International offers you a complete package for certification in which you are excellently supported. We are available to you at any time for questions without obligation.

If you need assistance or have any questions, feel free to contact us any time.

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Tesla leading in electric vehicle sales in South Korea

Tesla is boosting sales of electric vehicles in South Korea and making them more attractive to the general public. Previously, the car manufacturer had difficulties entering the Korean market. Potential buyers of Tesla vehicles were not entitled to the government’s generous bonuses of up to $21,000 for the purchase of electric cars. The reason was a regulation that vehicles eligible for the subsidy must be fully charged within 10 hours at a conventional power outlet.

This gives advantages to vehicles with smaller batteries and a shorter range. Models with larger batteries and range, such as Tesla’s, can be fully charged within 10 hours but require a special charging station with a high-voltage connection. The Korean government recognized this shortcoming and changed the regulation in July 2017, but Tesla’s S and X models remained too expensive. Only last year, when Tesla offered the Model 3 in South Korea, sales figures increased. Deducting the state premiums, the vehicle costs only $26,000. The launch of Tesla’s best-selling model has also significantly increased the acceptance and popularity of electric cars in South Korea.

For the first quarter of 2020, Korean automobile associations reported a 40 percent increase in sales of electric vehicles. Tesla sales rose to 4,075 vehicles from 236 last year, following the introduction of the affordable Model 3 in November. Korean manufacturers delivered 10,161 vehicles in the same period. However, this figure includes light commercial vehicles such as the Hyundai Porter II Electric, which was the most sold. In contrast, Tesla is the market leader for passenger vehicles. Other foreign manufacturers have only a small market share in electric cars. BMW delivered only 53 vehicles, Mercedes-Benz 23 and Jaguar 14. MPR International GmbH will be happy to advise you on Korean certification for automotive components. We have already successfully assisted many large automotive suppliers and also vehicle manufacturers with locations in Korea in their certification projects and have been supporting these companies for several years. Our experts are available to you at any time by phone or e-mail for questions regarding an upcoming Korea certification.

South Korea is considered one of the most important and innovative industrial nations in the world. To gain market access to this highly technological country, many products imported into South Korea must be tested and certified. The KC-Mark or KC certificate corresponds approximately to the European CE mark and applies to 730 different products, including many electronic products. Since 2005, MPR International has been supporting companies worldwide in the certification of products for the markets of Korea, China, Taiwan and India. MPR International offers you a complete package for certification in which you are excellently supported. We are available to you at any time for questions without obligation.

If you need assistance or have any questions, feel free to contact us any time.

Tel.: +49-69-2713769259
Email: info@korea-certification.com

Urgent questions?
Please do not hesitate to contact us via chat. You will find the chat window at the bottom right of each page (if this is not visible, please check your browser settings).

For more information you can download our free brochure “Korea Certification Made Easy – The Booklet“.

Electronics industry prepares for growing demand

The South Korean electronics industry is preparing for increasing demand after an improvement of the coronavirus situation. Managers from the industry expect an increase starting from the second half of 2020. Experts from the semiconductor, display, telecommunications and battery industries met recently at an event organized by the Korean Chamber of Commerce to prepare for the market situation after the coronavirus. The participants agreed that the industry can only benefit from the new opportunities and sales markets if they are well prepared.

 

 

Industry experts expect a change in production towards content, services and new technologies based on video conferencing and remote maintenance without physical contact. As a result, demand for semiconductors and displays will increase dramatically in the second half of 2020. “In a scenario where the spread of the virus in the US and Europe is declining, there will be no negative impact on the semiconductor industry,” said Song Myung-seob, an analyst at Hi Investment & Securities. He also predicted an increase in demand for IT equipment, from which the semiconductor industry can benefit and recover from the setbacks.

Production of LCD displays in China will also return to normal in the second half of the year and eliminate the current bottlenecks, according to analysts. Demand is also expected to rise for lithium batteries and electronic devices from the healthcare sector for use at home. Despite the restrictions imposed by Covid-19, the market for electric vehicles is growing and Korean manufacturers should catch up with their Chinese competitors, said Kim Ji-san, an analyst at Kiwoom Securities. He predicts that the robotics market will also grow in addition to health and hygiene-oriented electronic devices.

South Korea is considered one of the most important and innovative industrial nations in the world. To gain market access to this highly technological country, many products imported into South Korea must be tested and certified. The KC-Mark or KC certificate corresponds approximately to the European CE mark and applies to 730 different products, including many electronic products. Since 2005, MPR International has been supporting companies worldwide in the certification of products for the markets of Korea, China, Taiwan and India. MPR International offers you a complete package for certification in which you are excellently supported. We are available to you at any time for questions without obligation.

If you need assistance or have any questions, feel free to contact us any time.

Tel.: +49-69-2713769259
Email: info@korea-certification.com

Urgent questions?
Please do not hesitate to contact us via chat. You will find the chat window at the bottom right of each page (if this is not visible, please check your browser settings).

For more information you can download our free brochure “Korea Certification Made Easy – The Booklet“.

South Korea’s industry makes headway in electric vehicle batteries

The leading battery manufacturers in South Korea – LG Chem, Samsung SDI and SK Innovation – were able to demonstrate solid success in recent months against the market power of China and technology leader Japan. In the first quarter of 2020, LG Chem, for example, was able to secure market leadership with 27.1 percent despite the difficult circumstances caused by the coronavirus. Nevertheless, experts and industry representatives warn that South Korea’s industry could suffer setbacks relatively quickly if it cannot keep up with the development of the next generation of automotive batteries.

 

 

An important factor is the development of solid-state or dry batteries. These use solid materials as energy storage, unlike liquid or polymer gel batteries such as lithium-ion batteries. Dry batteries may be safer and also offer a higher energy density which means they can store the same amount of energy but are smaller and lighter. Japan’s Fuji Economic Institute predicts that the market for solid state batteries will grow to $22.8 billion by 2035. Japan is currently the leader in solid state battery technology and companies in the US, China and Europe are working hard to catch up.

At a meeting of the boards of directors of Samsung and Hyundai Motors in May of this year, the further course of action regarding research and development of dry batteries was discussed. South Korea currently lags behind Japan, which plans to start serial production of dry batteries in 2022, while South Korean manufacturers have no prototypes yet. Toyota already announced in 2017 the introduction of electric vehicle solid batteries for 2020, the series production is planned for 2022. For this purpose, Toyota has signed a research and development agreement with Panasonic and in April 2020 founded the joint venture Prime Planet Energy & Solutions.

South Korea’s largest battery manufacturer LG Chem, on the other hand, doubts the economic viability of solid state batteries and is sticking with conventional lithium-ion batteries. In the meantime, Hyundai, a manufacturer of electric vehicles, has announced that it may develop its own solid state batteries. In this context, Hyundai Motor has already invested 5 million US dollars in the American company Ionic Materials in May 2018. Three months later, Hyundai Motor made a further investment in Solid Power, another US company in the field of solid state batteries. MPR International GmbH – Korea Certification is represented by its own companies at five locations in South Korea and thus completely covers the demand for certification services for the South Korean market. Our experts are available at any time and without obligation to answer your questions regarding a new upcoming certification or a follow-up audit.

If you need assistance or have any questions, feel free to contact us any time.

Tel.: +49-69-2713769259
Email: info@korea-certification.com

Urgent questions?
Please do not hesitate to contact us via chat. You will find the chat window at the bottom right of each page (if this is not visible, please check your browser settings).

For more information you can download our free brochure “Korea Certification Made Easy – The Booklet“.

Simplified approval process for chemicals to ensure better supply

On 20 May 2020, the Korean Ministry of Environment reported that the simplified approval processes such as registration, evaluation and control of chemicals have led to a 61 percent increase in supply. In particular, the supply of special or difficult-to-obtain substances has improved. According to the ministry, the simplified approval process was applied to 15 types and 37 individual cases at a total of 32 companies.

 

 

The period for granting or amending an operating license of the above-mentioned companies was reduced from 75 to an average of 30 days. As a result, the supply of perishable chemicals such as hydrofluoric acid was increased from 105,000 to 166,000 tons. Accordingly, the registration of such substances was accelerated and the daily available quantity for the domestic chemical industry increased from 1,900 to 122,000 tons.

The simplified regulations were introduced in order to continue to provide companies in the semiconductor and battery manufacturing industries with the necessary raw materials and to avoid production interruptions. In recent months, the global outbreak of Covid-19 and a resulting export ban by Japan has led to shortages of chemicals in Korean industry.

We would be pleased to support you with your Korea certification and are also available to answer your questions at any time. Send us an email or call us at +49-69-2713769259.

KT acquires stake from Hyundai’s robotics division

KT Corp, a leading telecommunications company in South Korea, announced in mid-June that it would acquire a 10 percent stake in the robotics business unit of the shipbuilder Hyundai Heavy Industries Group. KT hopes that the investment will improve its competitiveness in the field of modern manufacturing and robotics for industry. In detail, KT is purchasing company shares from Hyundai Robotics Co., the largest manufacturer of industrial robots in Korea, with a value of the equivalent of 41.4 million US dollars.

 

 

Hyundai Robotics is a wholly owned subsidiary of Hyundai Heavy Industries Holding Co. which in turn is the holding company of South Korea’s largest shipbuilder. At the same time, KT signed a cooperation agreement with Hyundai Heavy Industries for various innovations in their industries. KT is contributing its experience in software development, 5G networking, artificial intelligence (AI), and Big Data to this partnership, while Hyundai Robotics will develop robots for these applications. Together, the two companies plan to build so-called service robots to complement existing industrial robots.

In the area of advanced manufacturing, KT will provide its telecommunications and security services, while Hyundai Robotics will provide the automation and robotics technology to upgrade production to a smart or intelligent factory.

We would be pleased to support you with your Korea certification and are also available to answer your questions at any time. Send us an email or call us at +49-69-2713769259.

Hyosung builds world’s largest liquid hydrogen plant in Korea

The Hyosung Group, under the leadership of its Chairman Cho Hyun-joon, wanted to support the local industry and economy in the application and processing of hydrogen with its plan to build the world’s largest liquid hydrogen plant. To this end, the Group has signed a MoU with the Linde Group and plans to invest the equivalent of 220 million euros in the construction of a complete value chain for the production, transport and distribution of liquid hydrogen by 2023. The memorandum of understanding was signed last Tuesday between Hyosung’s Cho and Linde Korea Executive Board member Sung at the company’s headquarters in Seoul.

The two companies agreed to build a 30,000 square metre facility in Ulsan for the production of 13,000 tonnes of liquid hydrogen per year. This amount can be used to power approximately 100,000 hydrogen vehicles and is currently the world’s largest stand-alone liquid hydrogen production facility according to the company. Construction work is scheduled to begin in the first quarter of 2021 and to be completed during 2022. The liquid hydrogen produced in the plant can be used to power a wide variety of vehicles. By building the plant, the Group hopes to attract and develop related hydrogen industries.

 

 

In order to deepen the partnership between Hyosung and Linde, it has been agreed that 120 hydrogen fuel pumps will be installed nationwide to ensure a reliable supply for hydrogen-powered vehicles. Hyosung Heavy Industries has operated a network of natural gas (CNG) filling stations since 2000 and entered the hydrogen market in 2008. Currently, Hyosung is the market leader in hydrogen filling stations with a 40 percent market share and 15 filling stations nationwide.

Hyosung CEO Cho said hydrogen is an environmentally friendly energy carrier that can restructure the oil-based economy while creating new innovations. “Therefore, Hyosung will focus on the liquid hydrogen business and increase efficiency and safety in storage and transportation,” Cho added. Cho believes that his company’s investment will play a significant role in revitalizing the local hydrogen industry. In January last year, the South Korean government announced that it would support the hydrogen industry through tax breaks and subsidies. The goal is the production of 6.2 million hydrogen vehicles and the installation of 1,200 gas pumps by 2040.

We would be pleased to support you with your Korea certification and are also available to answer your questions at any time. Send us an email or call us at +49-69-2713769259.

LG Chem and SK Innovation expand their market shares in automotive batteries

Market observers from SNE Research included the two South Korean companies in a list of the ten largest vehicle battery manufacturers in the world. While SK Innovation’s total production, measured in megawatt hours, declined slightly by 2 percent from 193 MWh to 189 MWh, LG Chem increased by 6.9 percent from 924 MWh to 988 MWh.

The growth at LG Chem, South Korea’s number one in the production of automotive batteries, resulted from the good sales figures of the Tesla Model 3. LG Chem was one of only two companies that were able to show positive growth in April 2020 compared to the previous year. Sales of competitor Samsung SDI fell by 41 percent in the same period. Samsung SDI has many customers in Europe, including BMW. Their production facilities suffered greatly from the lockdown due to the corona virus and had to close down temporarily or stop production.

 

 

In a global comparison of market shares for April 2020, Chinese CATL was in first place with around 35 percent, followed by LG Chem with 18 percent and fifth place SK Innovation with 3.5 percent. Calculated for the entire period from January to April 2020, LG has the largest market share with 25.5 percent, SK Innovation is in seventh place with 4.2 percent.

We would be pleased to support you with your Korea certification and are also available to answer your questions at any time. Send us an email or call us at +49-69-2713769259.

Rising sales figures in Korea for imported vehicles

The number of newly registered vehicles in April 2020 was 29,450, an increase of 25.9 percent over the previous year. The 20,000 mark was already exceeded in March. The corresponding figures were published on 7 May by the Korean Association for Vehicle Import and Distribution. In April 2019 Audi and Volkswagen were unable to sell vehicles due to a legitimation problem, but were able to increase their sales figures in April of this year.

BMW also had problems selling its new cars in April 2019, some of which caught fire, but the figures normalized this year. BMW is currently in second place in terms of sales figures, with 5,123 vehicles sold in April 2020, an increase of 58.8 per cent over last year. Audi is in third place with 2,043 vehicles and Volkswagen is fourth with 1,345 vehicles. The front-runner among imported new vehicles is Mercedes-Benz with 6,745 vehicles sold in April, an increase of 3.1 percent compared to the previous year.

 

In contrast, the figures for Japanese imported vehicles fell in April. A total of 1,259 units were sold, a decrease of 64.4 percent compared to the same period in 2019. Sales of Lexus (461 vehicles) and Toyota (309 vehicles) fell by 68 and 63 percent respectively. Sales of Honda, Nissan and Infiniti were also down. Only Lexus increased its sales by 12 percent compared to March.

Looking at the figures for the individual imported vehicle models, Volkswagen’s Tiguan 2.0 TDI is the best-selling import vehicle in April with 1,180 units. The Mercedes CLA 250 4MATIC (706 vehicles), the BMW 520 (687 vehicles) and the Mercedes E 300 4MATIC (673 vehicles) take the other places.

We would be pleased to support you with your Korea certification and are also available to answer your questions at any time. Send us an email or call us at +49-69-2713769259.