31The Ministry of Knowledge and Economy Selects 325 Excelling Companies 2011-07-28
The Ministry of Knowledge and
Economy Selects 325 Excelling Companies
■ Reported by Joon-ho Park | June 2, 2011
[Seoul=Newsis] Journalist Jooh-ho Park = June 2nd, The Ministry of Knowledge and Economy Selected and announced 325 ‘best places to work at’ companies in order to boost the regional economy and increase employment opportunities.
Opposed to the conventional criteria, the relative size or scale of the company, MKE paid special attention to the company’s stability, outlook, potential, working environment such as benefits and employee satisfaction ratings.
The numbers of companies selected are as follows: Seoul 22, In-cheon 25, gyeong-gi 28, Pusan 26, Daegu 20, Gwang-joo 16, Daejun 23, Wool-san 10, Kang-won 18, Choong-book 22, Choong-nam 16, Jun-book 15, Jun-nam 23, Gyeong-book 30, Gyeong-name 27 and Jae-ju 4, respectively.
Coming up next is each region’s excellent companies.
- omitted -
Free and Magis, ID Information System , Dentice , Samyoung , and T, Mireenet Sola, WinnieTech, Dongbang Plan Tech, Korea OSG, Bo-gook Digital, Myeong-ill Technology Corporation, You Bio Med, GoMoongDang Print, Daesung High Tech, Peace OilSeal Corporation, C Max Wireless, Pyeong-hwa Jung-gong, Pyeong-hwa Balleto, Max Film, Ah-jin X Tech, and JVM Inc.
30JVM signs MOU with Kyungil Univ. 2011-06-15
JVM signs MOU with Kyungil Univ.
■ Reported by Sooman Jegal| June 10, 2011
[By Sooman Jegal @ Seoul = NewSys] = On June 10, a Memorandum of Understanding (MOU) for research collaboration and interactions was signed between JVM and Kyungil University.
This MOU is designed to enable JVM to make most of outstanding resources and equipments at Kyungil University while giving Kyungil University a great opportunity to gain deeper insights on the academic & technical research of the business site.
This MOU will hopefully lead to partnership initatives, including 'establishing a link between the university and business', 'joint use of facility, equipment, and materials', 'research resources & technology information exchange', 'joint participation on the R&D projects', and 'intership programs and on-the-job training' to offer graduates intership and job opportunities.
Kyungil University is planning to expand its partnerships with other leading leaders as well as JVM.
HyunTae Jeong, dean of Kyungil University said, "Continuous support for the industry-university collaboration is essential for both universities and companies to be able to quickly keep up with today's ever-changing business landscape. We will continue to expand our partnerships with othe industry leaders."
<© NewSys All rights reserved>
29Patent Boom in Regional Businesses 2011-05-26
"Patent Boom" in Regional Businesses
■ Article by Kyeongseok Roh | May 19, 2011
JVM, located in Seongseo Industrial Complex, Daegu, is a local gem producing automated pharamcy solutions with high market shares in the USA and Europe as well as in the nation.
The company has been constantly devoted all its energy in accummulating a variety of property rights in order to be at this point. An officiat at JVM said "JVM had suffered from a patent litigation with our competitor for more than three years since 2000" and added, "When we thought we were driven over the edge, we organized a patent task force team to secure our future." Truly, the comany's decision proved to be right; JVM is recognized as an 'Thomas Edison company' with as many as 264 patent certificates so far.
Entire companies in the Daegu region are actively engaging in securing their property rights. More and more businesses are organizing an in-house research lab as an effort for patent applications. Because this is believed to be a effective and efficient shield to prevent the business from the agreesively growing legal battles regarding patents/intellectual property rights or with international competitors.
According to a report by Daegu Chamber of Commerce and Industry (DCCI) on May 18, the pending applications grew by as much as 31.3% in just eight years recording 10,165 patents this year from 7,739 in 2002. The figure increased every year except 2009 when we all suffered from the global financial crisis.
For example, a motor part manufacturer in Seongseo Industrial Complex deployed a dedicated patent supervising staff from this year. This is because the company realized the importance of having a specialist in patent management to assist the core engineers to implement innovative technologies. A company's official said, "We are doing our best in securing property rights with a strong support from Daegu Chamber of Commerce and Industry (DCCI), The Korean Intellectual Property Office (KIPO), and The Small & Medium Business Administration (SMBA) and we are also planning to organize a dedicated patent task force team to help realize our initiatives."
"Intellectual property is a gem to business. The more you obtain, the better product you are to produce," commented SeonKyeong Kim, Director of JVM.
Meanwhile, textile industry strongly believes that introduction of a new material along with its patent will make the business stay profitable for more than 10 years.
Also, companies are increasingly showing an interest towards patent applications by the public.
Last October, Hyeonjae Choi (55) acquired a patent from KIPO for a environment-friendly, harmless-to-human semipermanent silicon healthrope. And he is receiving great attention and offers from many companies as his patent is believed to be succesful in Europe. Mr. Choi is still deciding whether to open his own business or accept one of such tempting offers.
An official at the Regional intellectual Property Center, DCCI said, "Daegu has a solid and various research support including institutions like Korea Textile Development Institute, Daegu Gyeongbuk Institute of Science & Technology, and Daegu Machinery Institute of Components & Materials as well as a strong willingness of local businesses for R&D efforts. We will provide more support to assist local businesses in gaining patents."
<© Maeil Daily All rights reserved>
28Samsung and SMBs overlook the importance of "patent" 2011-04-26
Samsung & SMBs overlook the importance of "Patent"
Patent is not only a company’s power, but a solid base for strong stock price.
Article by Taejin Kim | April 21, 2011
Apple sued Samsung over patent infringements. Apple is claiming that Samsung’s line of Galaxy smart phones and tablets are copying the iPad and iPhone. Samsung is not the first company that Apple sued over patent infringements. Apple filed lawsuits against HTC and Motorola for infringing the patents last year, followed by another patent lawsuit against Amazon for using its own name ‘AppStore’ without any consent.
Not all patents are innovative; however, patent ownership gives a company a strong competitive edge as well as a good source of profit. This is why investors are turning to a company with new patent acquisitions. Of course, there is no way a company can do if fake items are massively distributed in the market and this is a weak point of patent acquisition. Nevertheless, most major companies are aggressively investing in R&D business. And sometimes they recruit patent holders to benefit from their patents.
◆ Patent – keeping even the leading companies alert
Ironically, Samsung, who is accused of patent infringements, itself has a portfolio of more than 10,000 domestic and overseas patents. Most of them are related to the company’s key businesses including flash memory, system’s large scale integrated circuit (LSI), and smart phone LCD. But Samsung thinks that it is never enough. For instance, Samsung is dedicated to obtain patents under the goal of “more than one patent per employee”. Also, the company invested about 9,400 billion won towards Research & Development last year alone. This is because the company thinks that there is no future without research and development.
Eastman Kodak, manufacturer of the world-famous Kodak films, is another good example which greatly benefited from patents. Eastman Kodak invented a world’s first digital camera in 1975 and then released a digital camera for consumers in 1994. Unfortunately, its competitor, Sony took the lead in the digital camera market as Eastman Kodak focused more on the film market.
Soon, the digital camera market took over the traditional film industry and Eastman Kodak seemed to die out. But some of the core technologies in digital cameras including CCD image sensor which converts the light to electrical signals, ITO sensor that increases the resolution and color depth, and ERI-JPEG compression that significantly reduces a file size was Eastman Kodak’s “intellectual property rights”. In other worlds, anyone who uses the digital camera has to pay royalty to Eastman Kodak and this was a major contribution in order to save the company.
◆ Patent acquisitions of the listed companies in the Daegu Kyungbuk region
How about patent acquisition status of the listed companies in the Daegu Kyungbuk region? We have analyzed the public announcement records of patent right by the listed companies in Daegu Kyungbuk region for 12 years since 2000 and these companies had been acquiring patents in a habitual manner. Companies with patents were constantly investing in research and development and it led to overall sales increase.
Kosdaq-listed JVM is a good example of such companies. JVM has incomparable figure for patents and therefore the company has also gained reputation as an ‘Edison group’ or ‘patent-rich company’. From 2006 when the company was listed in the stock market until just a few days ago, JVM has been constantly applying and acquiring a variety of patent rights. 90 patents were publicly announced since 2006. A leading manufacturer of medicine packaging automation systems, JVM is holding an unchallenged position in the US and Europe as well as Korea. Such achievement could not be realized without JVM’s extensive patents. The company has set a high entry barrier by registering 253 domestic and international intellectual property rights. In particular, JVM released AccuPharm last year with the strong basis of its patents, which provides an unparalleled inventory control of the medication used in the pharmacy. Even low price cannot beat the unrivaled technology in the market. This is why JVM has been obtaining more than 30% in annual operating profit.
As a result of public announcement analysis of patents, 39 companies registered 1 or more patents for the past 12 years. Only 7 companies registered 20 or more patents for the same period. On average, these companies secured at least two patents a year (see Table 1). But the number of public announcements for patent tends to decrease each year (see table 2). This is because the public announcement does not significantly benefit the stock price influence. Plus the public announcement is not mandatory; therefore it is up to the company’s own will.
Also, both public announcement of patent assignment and the announcement of patent acquisition were changed to voluntary one since April 2006 and February 2009 respectively. But the patent-rich companies do not seem to stop their habit. As many as 11 companies including JVM (15 patents), Taeyang Mechatronics (9 patents), TOP Engineering (6 patents), and LNF (6 patents) continued to announce its patent acquisition since 2010.
27JVM is speeding up to "improve its financial structure" after the end of KIKO contract 2011-03-18
JVM is speeding up to "improve its financial structure"
after the end of KIKO contract
JVM has finally finished its currency option, KIKO, which had been dragging its sales performance, looking to a speedy improvement in its weakened financial structure. The company is determined to secure new market opportunities with aggressive marketing strategies to improve its performance making up for the big loss due to the KIKO contract.
At the end of the day on March 10, JVM (054950) announced the end of the entire KIKO contract with Citibank Korea. The KIKO contract was from April 10 2008 to March 10 2011 and the company's loss during this period was nearly 23 billion won.
One official at JVM said "The KIKO loss is already reflected in the last year performance." "We will see a tangible financial structure improvement as this painful KIKO contract has finally come to an end."
He also commented "In particular, our non-operating loss has been decreasing greatly due to the decreased KIKO loss. Therefore we will see an increased net income." "We are seeking new sales market opportunities with our agressive marketing strategies as well as new product release and cost reduction which will take us back to solid financial track," he added.
JVM's performance by last Q3 was 39.3 billion for sales and 7.1 billion won for operating income.
Reported by Wonik Bak, Edaily
Mar. 11 2011
26JVM is expecting an increase in performance with the closing of KIKO deal in March 2011 2011-01-03
JVM is expecting an increase in performance with the closing of KIKO deal in March 2011
Reported by Jisan Kim, MoneyToday
Dec. 28 2010
JVM, a pharmacy automation solutions provider, is going to close the currency option trading (KIKO) deal by the upcoming
March 2011 and therefore expecting to move forward to secure a more favourable growth.
Today, JVM announced that its KIKO balance as a total of 10.2 million dollars with the assumption of 7.2 million dollars in Jan 2011
and 3 million dollars in March 2011.
Although the merit of the KIKO case raised by the company was rejected in the central district court, JVM expects the performance
volatility due to the fluctuating exchange rate to be greatly decreased as the deal is nearing the end. Meanwhile, the appeal in the
high court is still in progress.
JVM, the leading provider of ATDPS (Automatic Tablet Dispensing and Packaging System) in the many major ATDPS markets
including Europe and North America (except Japan). It stopped the company from gaining the good profits of tradition and resulted
in the 78.8 billion won of loss in 2008.
The company did see black ink of 30.2 billion won in the last year, however, the net profit to the third quarter of 2010 was a mere
8.1 billion won while the sales to the third quarter of 2010 was 39.3 billion won.
Also the debit ratio which was below 30% on average surged to 400.3% as of the third quarter of 2010.
An official at JVM prospects that JVM is expecting a major performance turnaround from the first quarter of 2011 due to some
favorable conditions including the end of the KIKO deal and the business recovery.
25KOSDAQ JOURNAL June 2010 2010-10-25
24Taegu, 5 additional selection of ‘Star Patent Corporations’ 2010-07-23
Taegu, 5 additional selection of ‘Star Patent Corporations’
Grew in number of 23, JVM, SaeShin Precision, Log, MyungIl Foamtec, EchoWin included
May 14, 2010
5 Star Patent Corporations newly came out in Taegu.
The Intellectual Property Center in Taegu Chamber of Commerce & Industry had
2nd steering committee on April 30th, 2010, and selected additional 5 local SMEs as
the Star Patent Corporations. The winners are JVM, SaeShin Precision, Log,
MyungIl Foamtech and Echowin.
To those selected corporations, various supports would be provided such as the
patent consulting from professional consultants, foreign brands development
which is targeting non-English speaking countries. They would also receive
benefits of supports in prior art search, patent prosecution costs, research of
trends in patents and technologies, formulating trial products and promotion
JVM Co, Ltd (JunHo Kim, CEO) is the manufacturer of the automatic packing
system with refinement and sorting, used in large pharmacy and the like. It goes to
the number 1 ranking in the field, having an 85% domestic market share and a
34% and a 53% market share in Europe and North America market, respectively.
It owns not only 78 patents and 54 utility models in Korea but also 64 foreign
patents and 10 foreign utility models.
Saeshin Preicision Co, Ltd (IkJae Lee, CEO) is producing hand-pieces, using the
micro motor. It is the only one who owns the related technology in the field in
domestic market. Moreover, as the Star Corporation in Taegu, it has been
exporting products with its brand names such as STRONG and FORTE to 120
countries all over the world. In last March, it had a Sales Agreement with Iran to
provide hand-pieces of 1 million dollars amount. A number of intellectual
properties based on independent technology development by SaeShin.
Log Co, Ltd (YongJung Bang, CEO) is developing the software, identifying and
analyzing internet users in automatic way to utilize results in the marketing. It owns
11 patents, 29 patent applications, 5 PCT applications, 4 foreign applications and
3 foreign trademark applications. With the help of its leading technologies and the
IP portfolio, it preoccupied the market and now has a 96% market share in the
internet-user marketing program area. Gross sales in 2009 reached 1.6 billion won
with 200% growth rate in every year which started as 75 million won in
the beginning year 2006.
MyungIl Foamtech (SungYeol Noh, CEO) had been grown to an international SME
now, developing and making foam-extrusion devices since 1980. The sales are
oriented to the areas of foreign countries and there are more than 50 countries
where MyungIl is selling to, including the U.S., South East Asia, Russia, Middle
East countries, Europe and South America.
EchoWin Co, Ltd (KyungBon Koo, HyoHyun Kim, CEO) had developed the
technology for a mass production of the echo-friendly bio-agricultural pesticides,
using the natural enemy. It set up the line for the mass production as well. Based
on the technology and cost competitiveness, it is recognized as a promising
company with the reach of 1.4 billion won sales only in 18 months since it was
Meanwhile, there are 23 Star Patent Corporations in total, which includes; DaeJu
Machinary, Avaco, SNSTech, WiniTech and Capco, selected in 2007, BuHo
Chairwon, BSG, Sambo motos, Samco, IDH and JalMan Oil Seal, all selected in
2008, KyungChang, DaeDong, Buwon, Auto Clover, Korea Cope and KCW, all
selected in 2009, and 5 another corporations in this year.
By SangHyun Ryu, firstname.lastname@example.org
ⓒ kyongbuk.co.kr, All rights are reserved.
23Eximbank to select 34 SMEs for Korean hidden champions 2010-07-23
Eximbank to select 34 SMEs for Korean hidden championsSmall- and mid- sized enterprises (SMEs) with ‘hidden champion DNA’ to be nurtured into competitive global players.· By Jeong Jin-woo at Money Today· Input : 2010.03.2834 Korean hidden champions fostered by Eximbank.Company nameCEOCompany nameCEODAEYANG ELECTRICCO., LTD.Seo, yeong-wooINNOXCORPORATIONChang, K.HChang, C.GMN TECHCO., LTD.Kim, chul-youngEO TECHNICSCO., LTDSung, kyu-dongDONGHWA ENTEC.CO., LTD.Kim, kang-heeEHWA DIAMOND INDUSTRIAL CO., LTDSong, yeong-taeBHICO., LTD.Woo, jong-inCho, won-raeJVM CO., LTDKim, jun-hoSANGSIN BRAKECO., LTD.Kim, hyo-ilCKD BIO CORP.Kim, young-eunSECO SEOJINCAMCO., LTD.Ha, byeong-joKEBTecholologyCho, chung-ilCELLTRION INC.Seo, jung-jinKC COTTRELL CO., LTDLee, tae-yeongSTEEL FLOWER CO., LTD.Kim, byeong-kwonCOWON SYSTEMS. INCPark, nam-kyuSHINHAN DIAMOND IND. CO., LTDKim, shin-kyeongCRUCIALTEC. CO., LTDAhn, kwon-jun (Charles)SUN TECH CO., LTDKim, kyung-teaTOP ENGINEERING CO., LTDKim, won-namSR i-TECH CO., LTDJu, dong-geunTOVIS CO., LTDKim, yong-beom,Ha, hui-joSPG CO., LTDLee, jun-hoHY-LOCK CORPORATIONMoon, young-hoonOD-TECH CO., LTDPark, byeong-keunHANNONG CHEMICALS INC.Kim, eung-sangAURORA WOLD INC.Hong, ki-seonHANTECH CO., LTDPark, heung-yeolOPTIS CO., LTD.Lee, ju-hyungHYUNJIN MATERIAL CO., LTDLee, chang-kyuYUDO CO., LTD.Yu, seong-jinHJCAhn, jung-ku,Hong, seok-jungINNOCHIPS TECHNOLOGYCO., LTD.Park, IGDSR CORP.Hong, ha-jong↑ Data: The Export-Import Bank of Korea
The Export-Import Bank of Korea announced 34 small companies such as Sun tech Electronics, Crucialtec Co., Ltd and ODTech Co., Ltd etc (See above table.) were selected as fostering companies to be "Korean hidden champions" on March 28.The Export-Import Bank of Korea offered for public subscription for hidden champion fostering target companies and selected candidates through audits and field inspections that technological capabilities, quality of management and financial soundness are the primary criterion.The Export-Import Bank of Korea will provide one trillion won ($8.8 billion) in total by selecting a total of 100 companies as Korean hidden champion fostering target companies. Following the first selection at this time, the other fostering target companies will be selected by public subscription from coming April.The targeted "hidden champions" the bank selected have ‘hidden champion DNA’ which is focus and globalization mentioned by Hermann Simon's book "Hidden Champions.”Laying stress on their flagship products and conquering niches, each company exports its products into 25 countries in average. Even though the companies are small- and mid-sized companies, their R&D investment portion is 3.65% which is much superior than total small- and mid-sized companies, 2.06% and their patents are up to 38 secured per companies.Average exports are 69.2 billion won and average export ratio to sales amount is 61%. Key businesses are machinery and metal (18 companies), electrical and electronics (11 companies), chemistry and others (2 companies). 7 companies between them belong to new growth engine industry such as green technology etc.When being selected as hidden champion fostering target companies, the Export-Import Bank of Korea provides comprehensive financial support such as a prime rate on loans, discounts on banking transaction fees, increased credit lines and other financial support etc so that the companies can secure global competitiveness in all processes of ‘product development-manufacture-overseas sales.’ Experts assist them from the long-term strategy setup stage of an enterprise. And various information and consulting service required for overseas market pioneering and overseas network setup are offered, the bank said.
“We will foster our small and medium sized enterprises as world-class export enterprises which is envious of cosmopolitan people in next 10 years through Korean hidden champion fostering business” and also “Korean hidden champions create jobs and function as a “bridge” of our economy by heightening the people’s economy contribution with exports" the chairman of Eximbank, Kim dongsoo said.The Export-Import Bank of Korea, providing 20 trillion won ($16.9 billion), launched ‘Korean hidden champion fostering business last year which fostered 300 Korean hidden champions having the amount of exports over 100 million dollars and having a hold on continuous worldwide market. At that time, the bank, as an example, selected 12 enterprises as Korean hidden champion fostering target companies.
22[Come-from-behind CEOs]  Overcoming three Trials with 220 Technology Patents 2010-07-23
[Come-from-behind CEOs] Overcoming three Trials with 220 Technology Patents
Kim Jun-ho, head of 'JVM', an automatic medicine packaging machine company;Struggling against cancer in the mountain for 8 years;Beating a Japanese company in patent dispute;Surmounting the global financial crisis with new technology.
Published on Jan 01, 2010 03:12
Revised on Jan 01, 2010 07:42The sweeping global financial crisis of 2008, emerging a decade after the foreign-exchange crisis of 1997, collapsed even some of the most celebrated international corporations. Yet there are companies which overcame crises on the brink of going bankrupt, turning the game around successfully. We are, in this section, to introduce the stories of the CEOs of listed companies, which are small but solid enough to triumph over adversities.“Cancer, the checks of Japanese rival companies, and the global financial crisis”The above three were among the biggest hardships for Kim Jun-ho (63),Chief Executive Officer (Vice President) of JVM, in his 32-year business life. JVM is an automatic medicine packaging machine company, which is listed on KOSDAQ. As is indicated above, Kim has fought against cancer, the mortal illness. He has also confronted fierce checks of a Japanese rival company. However, a man of mighty sinews, he broke through the ordeals each time with his hallmark perseverance and challenging spirit. Last year, the global economic downturn drove him again to the dead end: with a substantial foreign-exchange loss and a reduced account, he had to seriously think about whether to close down his business or not. By investing aggressively in R & D, however, he is rising again like a roly poly.On the 29th December, the day when we interviewed Kim, the JVM factory, located at the Seong-seo Industrial Complex, Dalseo-gu, Daegu, was in full operation as usual, due to the end-of-the year flood of orders. There had been bulk orders, which means that its staff members had to work overtime far into the night, often until 10:00 PM, throughout the month. “The order, normally coming to 40 to 50 per month, virtually doubled towards the end of the year,” said a worker. Kim expected that this year’s turnover would increase by more than 10 %, amounting to some 60 billion. His new year’s aim is to consolidate JVM’s status as the world’s number 1 company in the field of hospital-pharmacy automation.◆ Once medicine delivery boy established a firm.
Back in 1963, Kim was a first-year student of Sung-kwang High School, Daegu (he enrolled at its evening sessions). Two years before, he had been bereaved his father and now the 16-year-old boy should take charge of earning a living for his family. He burned the candle at both ends. At night he went to school; during the day he worked, delivering medicine by bicycle from wholesalers to pharmacies. There were few pharmacies that were willing to hire a fragile-looking little student on broken bicycle. Yet he was determined to prove himself, hoping that they would, some day, find him reliable and trustworthy. He thus volunteered to open, on behalf of the owners, drugstores early in the morning and even cleaned up. While helping them to wrap up medicine with paper for delivery, he would think “if this packaging job could be done more quickly, more work would be assigned me.” Eventually in 1978, he managed to invent the first automatic medicine packaging machine and at the age of 31, he founded his own firm.▲ There is the “Wall of Patents” inside the main office of JVM, the company for pharmacy automation system. Once released, JVM’s numerous patents were hung here one by one, until the wall came to be completely covered with them in 10 years time. This clearly attests to the power of their technology which excels that of their overseas competitions. On the 31st December, Kim Jun-ho (far left) and his executives and staff made New Year’s resolution, holding their patents. Daegu=Lee Jea Woo email@example.com◆ Defying the call from DeathLuckily enough, opening JVM coincided with the introduction of Medical Insurance System of South Korea. This meant an increase in demand for medical services, which accordingly had a beneficial effect on JVM’s turnover. The road ahead looked bright and promising. Yet in 1988, the 10th anniversary of the company, Kim was, out of the blue, diagnosed with terminal lung cancer, which understandably came as a horrible shock. Doctors shook heir heads, saying that he is in a “hopeless” condition. It looked like a call from Death and there followed many occasions when Kim was sustained by a respirator. He thus left the company with a professional manager and went for a change of air to a remote mountain village, Uljin, Kyungpook province, where he struggled against the illness for 8 years. In the end Kim was completely cured of cancer. He saw it as a miracle.He returned to his work in 1996 only to find out that his once trusted executives had already left JVM to establish their own firm by means of the technology handed down from JVM. With JVM nearly broken, Kim invested his entire asset available (almost 2 billion) to revive his firm. Then the executives, who had left JVM to found their own concern, readily offered a merger proposal and Kim, trying to forget the by-gones, accepted the offer.◆ Surmounting the checks of Japanese competitions
The year 2000 witnessed the fierce attacks from three Japanese rival companies which had been, by and large, dominating the Korean market. As JVM was gradually increasing its share in the domestic market, one of the Japanese companies, Yuyama, feeling threatened, filed a patent lawsuit against its new Korean rival. Thereafter, for 3 years, Kim had to be tried, presenting himself at the court as many as 13 times. The three Japanese companies set out to assail JVM in alliance. It was at once tenacious and ruthless. They spread the rumor that JVM would go through a bankruptcy process at any minute, which caused American buyers to turn away from JVM. In despair, Kim would make himself a promise, “in a situation like this, the only way out will lie in R & D, which I will go for”, and was even more committed to technology development than ever before. After all, he won the legal case and also retrieved the market that was once occupied by the Japanese concerns.As of 2008, JVM accounts for 70~80% of North American and European markets and 93% of the domestic market as well. The above-mentioned lawsuit served as a momentum, through which Kim realized the importance of technology development. It is worth mentioning that JVM has got 220 patents thus far, overseas or domestic, and currently it is an applicant for approximately 150 more patents. Since 2004, the company had annually 20~30% of profit out of the total turnover. In 2006 it was listed on KOSDAQ.◆ Getting over the waves of the financial crisis
Although the hardships such as illness or intense rivalry of the Japanese companies could not beat Kim, the global financial crisis of 2008 was rather different. The sales from the American market, which usually takes up half of the total sales of JVM, markedly decreased by 40 %. What was worse, there happened an enormous exchange rate loss on account of the currency option (swaption) products that JVM purchased. In the year before, its debt rate was 5700 % and its capital was eaten away. It can be said that JVM went completely bankrupt according to its account book. Besides, qualified researchers were reluctant to apply for the company, which caused the proposed R & D schemes, essential for the company’s growth, to be thwarted. “I felt there was nothing that I could do in the midst of the financial crisis and I felt as if standing on the edge of a precipice”,
Kim recalled those days. With the loss increasing rapidly, he was under extreme pressure, passing out twice in his office early last year. Thus, last March saw an employment of a managing specialist, Mr. Lee Yong-hee.JVM, however, made every effort to get over the tribulations; and last year, in spite of the large foreign exchange loss, the company made a profit in the area of sales. Once more Kim attempted to seek a breakthrough in the investment for new technology. Amidst the unprecedented crisis, he began to make an investment more aggressively. Last year JVM raised its R & D expenses from 3-4 % to 14 % of the annual sales. Kim added, “we are currently banking on our R & D investment, the largest ever in our company’s history”. These efforts came to fruition: the development of automation of pharmacy process, which has been delayed more than a year on account of the financial crisis, is due to be completed in coming March. “Until now we have focused on selling one main product but things will be changed from now on. In other words, with the advent of all-out automation of pharmacy, we are supposed to sell as many as 14 products and consequently sales will be on the rapid increase,” said Kim. “There comes already a flood of calls from overseas to buy our new products.” In sum, now JVM is getting out of the aftermath of the economic recession.Kim expects that this year’s turnover will account to 80 billion (last year it was 60 billion). Moreover, he also plans to increase the staff, currently 250, up to 350.Kim noted, “in doing business, you are bound to face trials and tribulations. I think you can get over any difficulties as long as you have the firm belief that even a crisis, if well-managed, turns to be bliss.”
By Choi Hyung Seok reporterCopyright ⓒ Chosun Ilbo & Chosun.com]