Kwang Myung has framed 40 years of Korea’s automotive seat history

The success of South Korea’s major corporations has created a positive trickle-down effect for domestic SMEs, providing them with the momentum and capabilities needed to grow. Today, we are seeing a significant reshuffling of global supply chains, driven by new regulations and policies that are opening up opportunities for new suppliers. Experts argue that now is the perfect time for Korean SMEs to step out from under the shadow of large domestic firms and take on the global market. Do you agree with this sentiment? What are the challenges and opportunities for Korean suppliers within global supply chains?

I firmly believe that now is the most ideal time for Korean SMEs to expand into overseas markets. To explain why, let me share Kwang Myung’s own experience. In 2007, we entered the Mexican market, encountering countless opportunities and challenges along the way. When we first ventured into the global market, we focused on the area where we had the strongest expertise: manufacturing seat frames for automobiles. Producing seat frames inherently requires expertise in designing and manufacturing molds and jigs, which form the foundation of the production process. We chose to specialize in this field because Kwang Myung was originally established in 1985 as a company specializing in molds and jigs.

For any company producing seat frames, the precision and quality of molds and jigs are absolutely critical. From the beginning, we made it our top priority to develop outstanding capabilities in this area. Over time, this solid foundation allowed us to create our own proprietary technologies, which in turn enabled our seat frames to achieve a quality level unmatched by competitors.

Building on this robust technical foundation, we moved to complete in-house product design. By designing and producing molds and jigs internally, we were able to achieve significant advantages in cost competitiveness and quality. Thanks to these strengths, we can now offer the most cost-effective and high-quality products in the global market.

In the past, Korean SMEs lacked the brand recognition needed to attract the attention of major global automakers. However, the rise of Hyundai and Kia has fundamentally changed the landscape. As these two companies gained a reputation for high-quality manufacturing, global OEMs naturally began to pay attention to their partner companies as well, creating steady opportunities for businesses like ours. Our business with Hyundai and Kia has been instrumental in helping us build trust within the global automotive parts industry and has opened doors to the international market.

Today, we maintain a stable supply chain supporting Hyundai and Kia while actively seeking to expand into new markets. In fact, we are already receiving and reviewing inquiries from leading global automakers.

In conclusion, the key driver of our success lies in the solid technical capabilities we built in molds and jigs. This foundation has allowed us to consistently deliver products that combine excellent quality with competitive pricing, enabling us to steadily expand our global footprint. As Korean SMEs continue to prove their capabilities, I am confident that they will achieve even greater success in the global supply chain moving forward.

Looking back on 2024, the automotive industry experienced a mixed year. Some sectors faced stagnation or minimal growth, while others encountered significant challenges. In particular, the electric vehicle (EV) market struggled considerably, with sales plummeting in Europe but showing modest growth in the U.S. How do you foresee the evolution of the automotive industry in 2025, and where do you see opportunities for your company amid these changes?

We anticipate that the overall trends in the automotive industry in 2025 will not have a major impact on our business. This is because we focus on manufacturing seat frames, which are essential for all types of vehicles, EVs, hybrids, and internal combustion engine vehicles (ICEVs) alike. Regardless of market shifts, our production volume remains stable.

That said, the industry's transition from ICEVs to hybrids, and eventually to EVs, is creating new opportunities for us. As vehicles evolve, the technologies and functionalities required for seat frames are also changing, opening new avenues for innovation. For example, we are actively developing advanced seat frames equipped with features tailored to EVs, hybrids, and autonomous vehicles. We are embracing this rapid pace of innovation, and we are confident that it will bring many growth opportunities.

In conclusion, while there may be uncertainties across the broader automotive market, we are preparing for the future through our robust product portfolio and strong R&D capabilities. By further strengthening our design expertise and adapting to the changing demands of the automotive industry, we are positioning ourselves to seize new growth opportunities.

Automakers often reuse frames and components from previous models to improve cost efficiency. In this environment, how does Kwang Myung plan to expand its in-house design footprint within its customer base?

For instance, when we design and manufacture products for Hyundai and Kia, all rights to those products belong to Hyundai and Kia. In other words, we are not allowed to sell those specific designs to other companies. However, being the exclusive partner for those seat frames within Hyundai and Kia itself creates significant opportunities for us.

By leveraging our proprietary technologies and our expertise in manufacturing and design, we are able to modify these products and tailor them for other partners or ODM companies. This flexibility allows us to pursue new opportunities beyond our existing customers while maintaining our competitiveness.

In addition, some of our new technology items are entirely based on proprietary technologies, meaning we retain full ownership and can sell them independently without needing negotiations with current clients.

Kwang Myung has long emphasized its expertise in seat frames and jigs as a core strength. However, we understand that you are now also seeking to diversify your portfolio into the aerospace sector. Could you elaborate on this initiative?

Yes, we are currently actively diversifying our portfolio. While seat frames and jigs remain our core competencies, we see significant potential in the aerospace industry. In particular, we are focusing on the development of seat frames and other innovative technologies for UAM (Urban Air Mobility) applications.

This diversification strategy aligns with our vision for growth and innovation, allowing us to leverage the technical expertise we have built over the years to expand into new markets and explore untapped opportunities.

KMRCS (KwangMyung Relaxation Comfort Seat)

Kwang Myung was founded in 1985, specializing in automotive seat frames, molds, and jigs. The company started as a local business but quickly expanded, establishing multiple factories across South Korea. Later, you made your global debut with a factory in Mexico in 2006 and another in the U.S. in 2014. How would you define Kwang Myung today, and what is your vision for the company?

Today, Kwang Myung is focused on strengthening three key pillars: technology development, product quality, and cost competitiveness. As I mentioned earlier, the domestic market is limited by a fixed annual production volume of around four million vehicles, which imposes clear growth limitations. By contrast, the global market holds much greater potential, and we are already receiving significant interest and proposals from various overseas companies.

To seize these opportunities, we are taking a phased approach, refining our technologies, enhancing quality, and optimizing costs. This careful, deliberate process is grounded in the lessons learned from past experiences and setbacks, and it has equipped us with the capabilities needed to meet the stringent standards of the global market. Given the products and technologies we have today, we are confident that we can achieve positive results.

Furthermore, we are utilizing the technical expertise accumulated over decades to develop new designs and drive proprietary innovation. Through these efforts, we aim to increase our revenue and accelerate our expansion into the global market. Our long-term vision is to diversify beyond automotive seat frames. With the solid foundation we have built over the past several decades, we are confident that we will achieve both revenue growth and successful entry into new industrial sectors.

You currently operate four factories in South Korea and two overseas. We understand that you have also adopted smart technologies and automation systems, including automated welding processes. What would you say are the two or three key factors that lead new customers to select Kwang Myung as a supplier for their future models?

One of the main reasons customers choose Kwang Myung as a supplier for future models is our outstanding cost efficiency. Before entering the global market, even we did not fully realize how competitive our pricing and technical capabilities were. However, after establishing our factory in Mexico between 2006 and 2007 and working with global companies like GM, we quickly recognized that our products offered the best cost efficiency among small and medium-sized enterprises worldwide. I am confident that Kwang Myung delivers the highest value in terms of cost competitiveness among global SMEs.

Our second strength lies in our expertise in jig and mold technologies. Not only do we have the capability to design and develop these components in-house, but we have also built a highly refined production process. Through process optimization, such as shortening production stages compared to competitors, we have significantly reduced costs and lead times, thereby maximizing productivity.

This level of optimization is not the result of luck. We start working closely with our customers as early as two years before a vehicle’s market launch, setting development budgets and planning streamlined production processes. This early collaboration is one of the core factors that allow us to deliver high-quality products with exceptional cost efficiency.

Finally, the introduction of smart technologies such as robotics, artificial intelligence (AI), and big data analytics plays a vital role in maintaining our quality and efficiency. For example, our automated welding processes not only enhance precision but also ensure consistent quality in mass production. By continuously investing in advanced equipment and smart manufacturing solutions, we stay ahead of competitors and remain agile in meeting the evolving needs of global customers.

The number of production processes typically varies depending on the materials used and the desired final shape. Earlier, you mentioned that you have achieved significant productivity improvements. Where does this efficiency stem from? Is it primarily due to your design capabilities, your ability to predict quality through simulations, or your data analysis technologies?

That aspect falls under our company’s trade secrets. However, what I can share is that our approach focuses on doing things that other companies have not tried before. We invest far more resources into research and innovation than most companies in the industry.

To give a specific example, one of the greatest innovations that allowed us to achieve cost savings was a complete reconfiguration of our production processes. For example, in the welding field, while most companies were still using a single robotic arm 10 to 15 years ago, we took the lead by introducing the simultaneous use of two robotic arms. This innovation significantly reduced cycle times and dramatically improved production efficiency.

Moreover, thanks to these innovations, we were able to minimize welding points, which in turn optimized material usage and further enhanced overall efficiency. These advancements all stem from a mindset of constantly asking, “How can we take the existing process and make it even better?”. By rethinking established standards and relentlessly pursuing improvement, we have been able to push our technologies to new heights.

In 2023, Kwang Myung was once again recognized as a leading player in the industry by being selected as a prime supplier for Hyundai Transys and Adient. The company also achieved impressive results, recording KRW 640 billion in sales, a 50% increase compared to the previous year, and received the 100 million USD Export Tower, expanding its influence in the global market. What do you believe were the key drivers behind this growth?

The growth we achieved is rooted in the three core pillars that we have emphasized throughout this interview, cost efficiency, advanced technological capabilities, and uncompromising quality. These three factors are the foundation of everything we do.

In addition to these, another critical factor behind our success has been our sales capabilities.
Beyond simply producing high-quality, competitively priced products, we have actively engaged with global clients, worked to deeply understand their diverse needs, and built strong relationships based on trust and partnership.

Our ability to meet and exceed customer expectations, combined with our innovation in manufacturing processes and strategies to expand globally, has allowed us to grow both our market presence and sales performance simultaneously. Being selected as a prime supplier by our client and receiving the 100 Million USD Export Tower are results that reflect our commitment to establishing Kwang Myung as a global industry leader.

In particular, the U.S. market is an even higher priority for us than the domestic market. The United States is central to our long-term growth strategy and represents an enormous opportunity for Kwang Myung.

In the short term, how do you plan to strengthen Kwang Myung’s presence in the U.S. market?

In the short term, we plan to focus on diversifying our presence within the market by leveraging our existing product portfolio. Our current lineup alone holds significant growth potential, and we are committed to strengthening our footprint in the U.S. based on these products. Of course, our goals may remain flexible depending on market trends, but the current trajectory is very encouraging.

In the long term, we intend to shift our strategy toward proprietary technology development and the launch of innovative new products. We plan to significantly expand our investment in R&D, develop our own technologies, commercialize them, and then expand our business model by selling or licensing those technologies to other companies.

Looking ahead to the next three to five years, how do you envision Kwang Myung’s future in terms of growth, revenue, and business strategy?

Our goal for 2027 is to achieve KRW 750 billion in sales. Based on the volume of confirmed orders we already have, we believe we are well on track to reach this target. In 2024, we recorded total sales of KRW 640 billion, and we are also forecasting the possibility of reaching KRW 1 trillion in sales within the next five years.

Given our established production and delivery cycles, along with a steady pipeline of new orders, we are confident that achieving KRW 750 billion in sales by 2027 is well within reach.

If you could deliver one key message to the readers of this interview, what would it be?

It is truly an honor to participate in an interview with such a prestigious publication, and I am deeply grateful for the opportunity. The message I would like to convey to the readers is that Kwang Myung, as a proud Korean SME, is committed to delivering products of the highest quality. Through these efforts, we are not only elevating Kwang Myung’s global standing but also helping to further strengthen the reputation of Korean manufacturing on the world stage.

For more information please visit: https://www.kmin.co.kr/company?lang=en