Shinsung Petrochemical is making strategic global investments to localize the production of next-generation eco-friendly automotive adhesives and sealants.
Hyundai’s global success is undeniable. One of the key reasons is the strong support it has received from technology-providing suppliers and product innovators throughout its growth. This collaboration not only strengthened Hyundai’s portfolio, but also fostered the development of highly competitive domestic suppliers. Today, these same suppliers are leveraging their accumulated expertise to pursue complementary opportunities overseas, within a global environment increasingly shaped by near-shoring and supply-chain stabilization strategies. Do you believe this is the right moment for Korean suppliers to expand internationally? What opportunities do you see emerging?
Yes, I think so. The reason is that we are now in an era where most global companies, including GM and many others, source worldwide. As global sourcing becomes more standard, opportunities naturally appear for companies that can meet global requirements.
And it is not only our company. Many companies are actively aiming for those opportunities. In our case as well, we are pursuing that opportunity, we are already contacting potential partners, and we are working to engage more global companies. I genuinely see this as a window for entering and expanding in global markets.
It also becomes possible, through this environment, to discuss supply agreements with larger global companies. Global companies are investing across different regions, and they are reshaping supply bases. From my point of view, these shifts create real openings for mid-sized company like us. That is why we are actively using this moment and increasing contact.
As global adhesive and sealant companies such as Henkel, 3M, Sika, and Arkema continue to dominate the market through economies of scale, extensive global patent portfolios supported by heavy R&D investment, and well-established international networks, competitive pressure is intensifying. This is pushing mid-sized and specialized companies to diversify in two main ways: first, by developing niche applications, such as sealants for EV or ESS batteries; and second, by expanding their global footprint to reduce reliance on a single region. In an increasingly competitive environment, how do you differentiate your company?
If you look at suppliers today, almost everyone is focusing on EVs and electrification. We are the same. We are developing products that strengthen performance in the areas customers value, while maintaining competitiveness.
Of course, I cannot disclose everything we are developing. But I can share one example, because it helps explain how we think about differentiation.
Take the battery cover. If a problem occurs inside the battery and a thermal event happens, then whether it is the driver or the passengers, they must be given enough time to evacuate safely. In some cases, people are not given enough time, and severe accidents occur.
What we are developing is a coating applied to the battery cover. In many current scenarios, there is a limited time window often around 15 to 20 minutes before the situation escalates to the point where heat transfer and fire spread become critical and begin affecting interior components. By applying our coating, we believe we can extend that window by roughly another 20 minutes. In other words, we are developing a coating designed to delay heat transfer and meaningfully increase evacuation time.
That is one area where we are challenging global markets with differentiated EV-oriented solutions.
Products (EV Gap Filler)
A second area is the product form factor. In our industry, many sealant-type products are still primarily paste-based materials you spread or apply manually. But the direction of the market is moving toward liquid-type solutions, because paste-type products can be difficult to handle and integrate into advanced, automated processes.
So we are developing liquid formulations that can be applied via automated spraying, including robotic spray processes. Using this approach, we are already supplying to global customers. For example, in Vietnam we supply a company such as VinFast. We introduced something competitors did not have, and that helped us expand into supplying additional existing products as well, alongside the new solution.
We are also working to develop and commercialize these liquid spray products further, with the goal of productization and broader market rollout, including expansion into global markets. In parallel, we are also developing insulation-related products.
You mentioned liquid-type products. Are these liquid formulations used broadly across the automotive market?
They currently adopted widely by automakers.
At present, global companies like Henkel or 3M have products being used in the automotive market, and Hyundai-Kia has pursued localization for certain materials. However, the specific battery-cover coating solution I described is not yet widely used in the market. If our development is completed and validated, then we would be in a position to supply that product.
Currently, the domestic market, including Hyundai-Kia’s supply ecosystem, uses products such as those supplied by 3M in many automotive applications. If our product passes development and qualification, we can supply it as an alternative.
When do you expect this kind of coating solution could realistically be adopted?
Because a battery thermal event can become a major safety issue, the industry cannot move quickly without careful validation. It requires thorough review and extensive testing. After sufficient evaluation and verification, we would need to recommend the product to the automaker and go through their approval process. So the timing depends on rigorous testing and customer qualification, because the stakes are very high.
Global Network
Over the past two to three years, the EV market has not expanded as strongly as many had expected several years ago. At the same time, emerging regions such as Vietnam, China, and Thailand are accelerating EV adoption, while traditional automakers like GM, Volkswagen, and BMW are navigating complex transitions between ICE and EV strategies. From your perspective, what is the outlook for the EV market, and how will these shifts affect Shinsung?
In the immediate term, I would not claim we can define exactly what will happen in the EV market. But in the long term, the market is clearly developing. Environmental issues continue to be emphasized globally, and that supports long-term electrification and broader sustainability shifts.
We are also developing environmentally friendly products. For example, where we previously used solvent-type formulations, we are shifting to water-based systems. Water-based adhesives and related technologies are already being developed.
So while I cannot give a precise short-term forecast, I believe the long-term outlook is positive. And because we see that direction, we are developing eco-friendly products, including water-based alternatives. Over the long term, I see the market direction as favorable.
Korean SMEs have shown some market responsiveness and strong adoption of digital technologies. In manufacturing, automation, software, and MES systems are increasingly important, and even in the chemical sector we see growing digital adoption. From your perspective, is using MES systems, automation technologies, and production software a key factor in strengthening competitiveness?
Yes, it is. That is why we purchased about 8,000 pyeong of land in Gyeongju and are currently working on design and planning. The concept is a smart factory. Within the sealant segment, this would be the first time automation is introduced at this level.
Automation requires stable quality and stable process control. It also significantly improves productivity and efficiency. And as ESG management becomes more important, safety is emphasized more strongly. Korea also has a very strong law, the Serious Accidents Punishment Act, which makes worker safety a critical requirement. Automation strengthens safety, improves supply stability, and builds customer trust.
Finally, we face labor shortages, especially among operators. Automation helps address that problem. For those reasons, our plan in Gyeongju is to implement a smart factory automation system. We do not claim it will be 100% automated immediately because we are still building experience, but we are designing for around 80 to 90% automation.
Are you also introducing automation overseas?
This is our first attempt. We are not yet building overseas plants as full smart factories from the beginning. Instead, we plan to build experience through the Gyeongju facility first, and then apply what we learn overseas.
For example, we have a second plant under construction in Pune, India, and we plan to test and integrate elements of automation there as well. We also plan to explore applying similar approaches in Georgia, around Savannah. At the moment, we are thinking in a balanced way roughly 50–50 in terms of what we can realistically implement overseas.
The overseas factory timelines are tight, and changes can be difficult to introduce quickly. That is why we are using the Gyeongju site where we can directly control the process and ensure strong internal support to build a foundation. After accumulating enough experience, we can make longer-term changes and expand automation more systematically across overseas sites.
Shinsung Petro Korea was established in 1974 and is part of Shinsung Group, which works with major partners including Hyundai and Kia. Furthermore, you recently started to push your brand “Fillamon,” which seems to have become the face of the company in the overseas market. For global stakeholders, how should they understand Shinsung?
Our goal is that when customers who have experienced our products see the Fillamon brand, they associate it with trusted quality, stable supply, and new technology. We want Fillamon and Shinsung to represent reliability and consistency, while also representing innovation.
More specifically, we want customers to think of Shinsung as a partner with whom they can discuss technology an organization capable of technical collaboration and development. We are continuously working to establish ourselves as a trusted technology partner in that way.
I’d like to ask more about Shinsung Group. The group consists of three companies: Shinsung Petrochemical, Shinsung Industrial, and SICO. You have served as Vice President of Shinsung Industrial and are now with Shinsung Petrochemical. Could you explain the synergies created within the group?
Fundamentally, the strengths are connected. In areas like plastics-related technologies and industrial capabilities, the underlying technical foundation and operational excellence are aligned with the group’s broader competitiveness. The companies complement each other with related technologies and strong execution. That combination supports the overall strength of the group.
You emphasized that Shinsung wants to be seen as a partner capable of developing new products and technologies. Over the past decade, we’ve seen major innovations focused on lightweighting and improving vehicle performance. For example, SikaPower-550 G enabled Ford to significantly reduce aluminum body panel thickness on the F-150 by using two-part epoxy bonding, while Tesla’s 4680 battery cells utilize silicone adhesives as gap fillers to evenly dissipate heat. With growing demand for innovative solutions, where is Shinsung Petrochemical focusing its R&D investments?
As I mentioned earlier, our strategic focus is heavily weighted toward EVs and electrification. That is also part of why we are investing in facilities and preparation because EV-oriented competition requires a strong technical foundation.
In our R&D organization, roughly 30 to 40% of our personnel are dedicating their efforts to EV-related development. However, it is difficult to share specific details of what we are developing right now, because these areas are sensitive.
What I can say is that we are investing seriously in EV technology development. If there is a chance to share more in a future discussion or interview, then we may be able to open up more about specific outcomes at that time.
Let me ask in a more practical way about your next steps. You mentioned two major development directions: liquid-type solutions and EV-focused technologies. Since requirements differ by customer and region, companies often need to tailor products to local specifications. How do you design and deliver products so they can meet customer needs, including region-specific requirements?
Automotive requirements differ by OEM. GM, Chrysler, and VinFast each have slightly different specifications. Among them, Hyundai’s specifications are the strictest. In that sense, if we can develop a product that meets Hyundai’s standards and receive Hyundai approval, we can generally respond to requirements anywhere, because that establishes a strong baseline.
So I do not think there is much we cannot do in terms of meeting customer requirements. And we also have items through the various developments we are pursuing that we believe can appeal strongly to global customers. Often, the challenge is not capability; it is that the opportunity is not yet given.
Products (LASD)
You mentioned that your portfolio is being applied or considered across multiple regions, and that different markets may require different concepts or systems. Are there any product groups with particularly high demand, or certain categories you see as most attractive across regions?
Demand is important, and the product must be able to enter. But even beyond existing demand, we also need to create adoption by engaging customers and demonstrating value.
If we think about the manufacturing process, there is the body shop, the paint shop, and assembly. In the body shop, there are areas where welding is difficult. In those areas, to compensate for potential welding limitations and reinforce the body structure, we have developed structural reinforcement adhesives.
This has become even more important with EVs. In the past, certain metallic snap or vibration noises were masked by engine sound. In EVs, those sounds can be heard more directly. To address that, in difficult welding areas we apply structural adhesives to reinforce the body and improve perceived quality and noise performance.
For this application, we provide a spray-type solution. Instead of laying asphalt sheets on the floor and applying them manually, these sheets can be eliminated and replaced with a spray application that can be executed by robots. This makes the process easier to apply, enhances automation, and reduces manpower requirements.
It also eliminates the need to manage numerous molded pad parts, which vary by vehicle model due to differences in body structure. In addition, asphalt materials are relatively heavy and add weight, whereas spray-applied materials can be formulated at much lower density, supporting vehicle lightweighting.
Overall, spray-applied solutions reduce process complexity, improve automation, lower labor requirements, and contribute to weight reduction.
In the paint-related sealing area, as the industry moves toward eco-friendly and lightweight solutions, we developed an ultra-low-density body sealer lower density than water. We supply that product, and it supports lightweighting.
In assembly, material diversity is increasing, and ESG requirements are expanding. We developed water-based adhesives as a more environmentally friendly solution.
And in electrification, we are placing significant emphasis on battery-related products. We are developing differentiated thermal adhesives, structural adhesives, and other specialized solutions that support battery safety and performance.
You have emphasized eco-friendliness several times. Are there specific products or technologies you are developing to maintain or strengthen eco-friendliness?
As an adhesive-focused company, a core eco-friendly direction is water-based adhesives. In addition, we are developing formulations that incorporate more eco-friendly raw materials. For example, there is a chemical plasticizer called DOTP. We are developing products that replace a portion of such inputs with plant-based plasticizers derived from sources like corn, making part of the raw material system more environmentally friendly.
The liquid spray formulations I mentioned are also water-based, which supports eco-friendliness and aligns with ESG expectations.
Ultimately, ESG’s main focus is carbon reduction. That changes manufacturing. For example, automotive paint ovens that used to operate at 150-180°C are being lowered to 140°C or even 120°C to reduce energy use.
This matters for us because the most durable adhesives are traditionally thermosetting types, cured by heat. Now the industry is moving toward low-temperature curing types and even room-temperature curing types. We are adapting by developing lower-temperature and ambient-cure systems to respond to carbon reduction regulations and requirements.
Now I’d like to close with two future-oriented questions. First, I understand that Shinsung Petrochemical achieved strong growth, recording revenue above KRW 200 billion in 2024. If the growth trajectory continues, how do you see the next one to three years, and more broadly the next three to five years?
Three years is not far away. In our case, our leadership pursues continuous investment and a very proactive management approach. We invest continuously and focus strongly on developing talent.
The reason talent development matters is that we must build competitiveness against global companies. We need to develop products that global customers can adopt, and in some cases products that can replace what global suppliers provide.
Companies like Henkel, Sika, and others are ahead of us in many areas. That is true. So to enter and expand in those markets, we must match their level, and in some areas surpass them. Otherwise, we cannot break into the market.
That is why we are emphasizing this effort. For example, we moved our R&D function. We used to have R&D at a regional factory, but we relocated R&D to Suwon in the Seoul Capital Area. The reason is straightforward : attracting high-level talent is difficult in provincial locations, because many strong candidates do not want to relocate there. So we moved to Suwon to recruit and retain stronger talent and operate R&D more effectively.
We are investing proactively now. This is not a distant future plan. It is how we are operating today.
Secondly, Shinsung Petrochemical has established factory in five countries, covering North America, South America, Asia, and Southeast Asia. Which regions do you see as key growth drivers for Shinsung, and what international strategy are you setting to support those regions?
We are looking at the United States as a primary region, and also India, Vietnam, and Mexico.
Mexico is complex because there are ongoing issues, especially related to tariffs. If you produce in Mexico and ship into the United States, tariff issues can become a persistent risk and uncertainty. So Mexico is a potential region, but it requires careful judgment.
At this moment, the U.S., India, and Vietnam are the main priorities. Personally, when I look at Vietnam, I see very high motorcycle usage, and I believe that over time those motorcycles can transition into car ownership. That suggests meaningful long-term automotive growth potential.
Local investment is extremely important, and securing technical capability is extremely important. In a difficult environment, we reinvest the money we have earned into investment and capacity-building. We are building factories across Korea, the U.S., and India. For the U.S. in particular, we aim for strong operational execution, and that requires investing capital into facilities and production capability.
Thank you. If we meet again and do another interview five years from now, what dreams and goals would you want to have achieved by then?
My dream is that five years from now we will be doing business with major global companies. We are not yet fully transacting with them today, but we are already in contact for example, with GM in Brazil. Five years from now, I hope we will be doing business with GM, and also with companies like Chrysler and Tesla. If that happens, then in five years we will be able to share real stories of those transactions and partnerships.
So, to tell you my dream, by 5 years and after, we will be able to secure the transactions with the global companies like GM, Chrysler, or Tesla. But in fact, GM in Brazil, we are already contacting with each other, so by then maybe, I hope we can share this kind of story with you.
Furthermore, we have conversation with AvtoVAZ, in Russia. Five years from now, I would like to secure a position in that market too. That company has around 70 to 80% market share in the Moscow market. When we explained our products, at first there was some distance because it was unfamiliar, but after detailed explanations they showed strong interest. I believe that in five years, if the market opens further, there may be opportunities there, and I would like us to be in a position to supply and secure market presence with AvtoVAZ.
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