Thursday, July 30, 2015

SIMTOS Newletter July - Amazing Korea

1. Machine Tool Market Trend in June

(Orders) ‘15. June Machine Tool Order 2,635B(MoM +6.0%, YoY -6.0%)

o (Domestic Orders) 1,721B(MoM +33.5%, YoY +19.2%),

   (Export Orders) 914B(MoM -23.6%, YoY -32.8%)

o (By product)

NC Metal Cutting(2,148B, MOM -3.2%)

Metal Cutting (80B, MOM +8.4%),

Metal Forming( 407B, MOM +112.8%)

o (By industry)
Automobile(818B, MoM +95.3%),
SteelNonferrous Metal(115B, MoM +39.5%),
Machinery(279B, -14.2%), ElectricElectronicsIT(157B, MoM -10.8%)
*Metal products(75B, +1.4%), ShipbuildingAviation(87B, +33.1%),
Precision Machinery(31B, +10.1%)

o Machine Tool Orders(January ~ June) 19,573B(YoY +1.8%)

(Domestic Orders) 9,006B, -5.6%,

(Export Orders)
1,567B, +9.0%

□ (Production)
‘15, June Machine Tool Production 3,015B(MoM -4.3%, YoY -2.4%),
Shipment 2,935B(MoM +6.0%, YoY -3.0%)

o Machine Tool Production(January~June, 2015) 18,254B(YoY +8.1%)

(Exports, May, '15) $176M(MoM -39.2%, YoY -6.8%)

o Sub total of Exports (Jan.~May, '15) $954M(YoY +11.2%)
- By Region
Asia($417M, +9.3%), North America($158M, -9.2%), Europe($200M, -14.2%)
Central and South America($152M, +269.0%)
*ratio of Exports(‘15.Jan.~May) by region : Asia(43.7%), Europe(21.0%),
North America(16.6%), Central and South America(15.9%)

(Imports, May, '15)$126M(MoM +3.5%, YoY -34.8%)

o Sub total of Imports (Jan.~May, '15) $592M(YoY -3.9%)
- Asia($417M, +9.3%), North America($158M, -9.2%), Europe($200M, -14.2%)
Central and South America($152M, +269.0%)

2. Korea-EU to Cooperate on 90 Billion Won Projects in Nano, Bio, Energy, ICT

 South Korea and the E.U. will conduct a joint research project worth 90 billion won
(US$80 million). Korea is aiming to expand cooperation for the “creative economy” using the E.U.'s capabilities in science technology and research infrastructure. The Ministry of Science, ICT and Future Planning (MSIP) announced that it held a fifth meeting of the EU-Korea joint committee on science technology at the Plaza Hotel in Seoul on June 15, together with the E.U.'s Directorate General of Research and Innovation (DG R&I). The DG R&I is in charge of the European Commission's research and innovation policies and the E.U.’s new research and innovation program called “Horizon 2020.” Lee Suk-joon, the first vice minister at the MSIP, and Robert-Jan Smits, Director-General of DG R&I, attended the event as the head of each delegation. The details of the joint research program, including the budget, was fully fleshed out at the meeting, and is expected to start this or next year. By area, 65.5 billion won (US$58.6 million) will be invested in nanotech, 5 billion won (US$4.5 million) in biotech, 4 billion won (US$3.6 million) in energy, and 15 billion won (US$13.4 million) in the ICT sectors.



 3. Korean Gov't to Invest 100 Billion Won in IoT Testbed Projects

25 June 2015 - 1:15pm
Jung Suk-yee

 The Ministry of Science, ICT and Future Planning (MSIP) has decided to pursue testbed projects in the category of the Internet of Things (IoT) with a more than 100 billion won (US$90 million) investment. The MSIP announced that it held a meeting to report the initiation of IoT testbed projects at its global R&D center near Seoul on June 24. The projects are aimed to create results in the “creative economy,” as part of the three year plan for K-ICT strategy and economic innovation. IoT testbed projects are large-scale projects designed to lead the growth of the convergence market by fusing IoT infrastructure and technology in such core areas as autos, health care, energy, urban life, and factories, and to facilitate the development and earlier commercialization of new products and services. The government agency is going to start seven IoT testbed projects – two projects to build 2 testbed research complexes and five convergence testbed projects – with an investment of 108.5 billion won (US$97 million) over the next three years, including 33.7 billion won (US$30.4 million) in 2015. 

 4. Korean Tech Firms Bet Big on Smart Heath Care


Wednesday, June 10th, 2015

 Korean tech firms including Samsung Electronics are ramping up efforts to take the lead in digital health care market by joining hands with medical centers.
However, the growth is still slow due to burdensome regulations and lack of infrastructure.
The Korea Health Industry Development Institute estimated that around 12 million people in their 20s to 60s used smart health care service last year in Korea, and the local market reached 3 trillion won. The global digital healthcare-related market is expected to surge to $26 billion by 2017, up from $2.5 billion in 2013, according to the latest report by the state-run Korea Institute for Industrial Economics & Trade.

Among Korean tech firms, Samsung Electronics is the most passionate in the digital health care market. Since the smartphone giant announced its “Vision 2020” in 2009, it has continued to concentrate on developing U-health care and medical devices. Last May, it announced “Samsung Digital Health Initiative” in San Francisco and unveiled SAMI (Samsung Architecture for Multimodal Interactions), an open data platform gathering and analyzing bio information and also launched Simband, a health tracking gadget.

Samsung said it would ramp up efforts on the research and development on analyzing health care data linked to SAMI and Simband in partnership with medical centers.
Samsung’s rival LG Electronics also unveiled its wearable heath care device LG Lifeband Touch, which is currently selling in the U.S. market. The new fitness band is a battery-powered smartwatch-type device that users wear around their wrist to monitor the number of calories they’re burning each day. It also rolled-out earphones measuring users’ heart rate while working out.

Korea’s telecom operators SKT, KT and LG Uplus are also boosting efforts to create revenue from the medical market by capitalizing on their ICT technical know-how. The nation’s two largest carriers SKT and KT already teamed up with Korea’s top hospitals, and created joint ventures Health Connect and Hooh Health Care respectively.
Health Connect is targeting business-to-consumer market based on its Health-On, a mobile-based health management service while Hooh Health is focusing on business-to-business such as integrated medical information system solution and e-MarketPlace.
Two companies haven’t shown any tangible performance last year but they plan to continue the research and development this year.

Korea’s third largest mobile carrier LG Uplus teamed up with Jaseng Hospital of Korean Medicine, the first time for the hospital of Korean medicine to partner with a telecom company. Two organizations are expected to unveil smart health care IoT solution for spine health this year.

Apart from tech firms, Korea’s large hospitals also joined the digital health care services. Some hospitals already unveiled mobile apps which let users make reservation and check results. Konkuk University Medical Center has run its smart U-health care system since 2010 and Seoul Paik Hospital made Health Avatar Beans, an app to manage blood dialysis, allowing patients to more efficiently manage their medical information.

However, some analysts say more relaxed regulations are necessary for the development of smart health care development. For the technologies and services centering on smart health care, there are too many rules and regulations, according to the Korea Health Industry Development Institute.

In South Korea, telemedicine is still illegal. The revision bill allowing telemedicine was sent to the National Assembly but never passed due to the strong opposition from doctors. One tech company developed telemedicine service for chronic diabetes patients for a decade, but it was disappeared on the market due to the lack of relevant laws and infrastructure.
The prohibition to make investment in hospitals is another factor, which drags the industry behind. “Though smart healthcare services such as telemedicine require a long-term investment and clinical demonstration, the development is not active due to the prohibition of investment,” a market observer said.


SIMTOS Newletter July - Monthly SIMTOS

1. About Manufacturing Market in South Korea

According to Gardner Business Media, a survey and statistics agency in US, Korea was the 4th largest machine tool manufacturer in the world with the total production volume of USD 5.6 billion in 2014. The country is the world’s 6th importer and 7th exporter of machine tools as well. Korea’s total consumption was ranked in 5th place but consumption per person was ranked in 2nd place after Switzerland.

Korea has a large economic territory. According to a survey conducted by a Japanese media agency, Korea has eight no. 1 items in the world, ranked in 4th place after US, Europe, and Japan. Those no. 1 items were semiconductors, automobile parts, smartphones, and display devices, proving the country’s competitiveness in the IT, electronics, and automobile industries. In addition, Korea’s manufacturing industry for shipbuilding, motor vehicles, and steel products has been highly acknowledged in the world, which should be backed up by the machine tool industry. Based on the proven competitiveness in automobiles, electronics, and semiconductors, the country is increasing its economic territory and the demand for machine tools. More recently, Korean manufactures look for equipment optimized for their manufacturing processes rather than focus on famous brand names, and overseas makers are trying to seize this opportunity.
2. The HEART of the Smart Factory, 'Automation'

- Automation, the media liaised between mankind, machine, and I.T. and SIMTOS
- New arrival "Engineering Software for Manufacturing Zone" in exhibition hall 7&8 SIMTOS2016

 In the reference to Korea Government's 'Manufacturing Innovation 3.0 Policy', Korea expect 10,000 smart factories like one of the renowned smart factory of SIEMENS located Amberg, Germany. Hence, there is secured budget of $240 billion, and scheduled to gradual investigation till 2017. If the policy being succeeds, one third of manufacturing factories in Korea would equip IT base production system.
There is no doubt that I.T.(information technology) and necessities for realizing automation such as soft wares, sensor, control and handling technology is key to establish the Smart Factories. In order to notify significance of ‘Automation’, the media liaised with mankind, machine, and I.T., SIMTOS2016 plans to build Smart Factory in KINTEX, Apr. 2015.
Production Automation for Smart Production System
We may consider that the trend of automation in the past as a clue for mass production era. However, recent automation that actively spread among manufacture businesses is not only simple factory automation but also automation of whole production system. So to speak, it would be a factory that liaised between mankind and machine.
Our government spurs 'Manufacturing Innovation 3.0 Policy' to be more competitive in global manufacture environment and to accumulate foundation of a creative economy. As many people acknowledged, creative economy refers to build something out of originals. In this context, cooperation and cooperation of experts, info-communication technology, and fusion techniques lead to qualified and low-cost production, and it has more competitiveness over a creative economy. Korea’s new strategy makes it possible from high quality mass production until customized production. Thus, automated production system is a key to trigger Smart Factory environment.
SIMTOS, the Compilation of Automation and Front Back Manufacturing Process
To take advantages over global market and to appeal demand industries the better quality and technologies, more active advertisement and marketing for automation companies is required. Particularly, companies ought to introduce potential and innovative products for raising their brand image and value. Therefore, renowned public relations meet the necessity.
Exhibitions related automation take great parts for advertisement gradually and there are numerous exhibitions and events in Korea. Nevertheless, ability to figure out the event that performs simultaneous technical cooperation with advertisement and that companies and consumers could blend in is needed. SIMTOS, the largest exhibition fair in Korea that contains compilation of automation and front back manufacture process would be an effective option.
SIMTOS has exhibitors that categorized from planning stages to complete productions such as machine tools, parts, forming machines, welding, laser-cutting, cutting tools and etc. Furthermore, this fair exhibits every automation items: CAD/CAM, CAE, PLM, measuring equipment, solution, sensor, measurement controller, network parts, motors and software; and industrial robots designed for handling and controlling production system throughout specialized hall. In addition, participating companies are in need of automation system.
For these reasons, entry of automation items such as software, measuring equipment, robotics, and etc. remarkably increased since 2012.170 exhibitors of 21 different countries participated at the last show but about 20 companies were not able to attend because of late-apply. Accordingly, SIMTOS 2016 enlarges fairground half as much as 2014 and arranges a themed pavilion of CAD/CAM, Measuring Systems, Automation and Robotics at hall 7 and 8 that was before hall 9.
Engineering Software for Manufacturing Zone in hall 7and 8 at KINTEX 2
In order to dedicate for Smart Factory project, SIMTOS 2016 office creates “Engineering Software for Manufacturing Zone” in hall 7and 8 at KINTEX 2 and recruits automation and software technology items that are core for Smart Factory.
The very first concept, “Engineering Software for Manufacturing Zone l”, created as Station Type which any other Korean exhibitions didn’t try yet. This type of booth designed for specifically efficient software presentation. This fresh and innovative attempt would lead for sure SIMTOS2016 to Festival with Manufacture Engineering and Software.
SIMTOS 2016 will be held during Apr. 13, 2016 ~ Apr. 17, 2016 in KINTEX, Korea. Online application of SIMTOS 2016 is recommended. For further information and details, go to (,+82-2-3453-2721).

SIMTOS Newsletter July - SIMTOS Story

What is SIMTOS?
▶ SIMTOS is a leading exhibition fair that contains compilation of every manufacturing technology and product trends.
SIMTOS has exhibitors categorized from planning stages to complete productions such as machine tools, parts, forming machines, welding, laser-cutting, cutting-tools, and etc. Furthermore, this fair exhibits every automation items: CAD/CAM, CAE, PLM, measuring equipments, solution, sensor, measurement controller, network parts, motors and software; and industrial robots designed for handling and controlling production system throughout specialized hall.
During SIMTOS 2014, 853 exhibitors from 33 different countries participated and displayed 7,050 products and technology.
Moreover, 100,351 visitors; average of 20,000 per day had been to SIMTOS. Further, 5‚400 multi-national buyers from emerging markets like Brazil and India were counted.


 There is research that corporations participating exhibitions like SIMTOS have better outcome of export. Many of Korean machine tool manufacturers utilize SIMTOS as marketing and research. Especially, corporations with rapid growth and exports have relative tendency to focus on SIMTOS.
From thesis ‘Trade fairs as an export marketing and research strategy: results from a study of Korean advanced machinery firms(2012)’ by Dr. Ronald V. Kalasfky, University of Tennessee.
“SIMTOS contributes a lot for apprehending world technology trend and cooperative firms.”
-Department of Product Design, Hyundai-Wia-
A large number of participation from oversea companies and buyers proves that SIMTOS has been devoting to internationalize Exhibition Industry.
-Department of Public Relations, KINTEX-
There is no doubt that SIMTOS is the representing exhibition in Korea. Effective Booth lay-out makes visitors and exhibitors easier to move around, find specific booth, secure insights.
-Tokyo Big Site, Satoshi Kimura-