What Does COVID-19 Say?...Gyeonggi Province Component Localization Support Project Participating Companies Make Strides

[Suwon Ilbo=Park No-hun Reporter] Even amid the unprecedented economic crisis caused by COVID-19, there are companies achieving clear results. The protagonists are companies participating in the "Gyeonggi Province Global Company-Linked Component Localization Support Project," which supports the development of parts and equipment previously dependent on imports using domestic technology and facilitates global market entry.

RF2Digital, based in Yongin, is receiving development support from Gyeonggi Province for its in-vehicle infotainment (In-Vehicle Infotainment) solution aimed at meeting diverse requirements from vehicle manufacturers. Though a small venture company with only eight employees, through Gyeonggi Province's support, the company recently signed a technology development agreement with German Mercedes-Benz and plans to jointly develop an infotainment system to be supplied worldwide. In the first half of this year, it was also recognized for its technological capabilities by being registered as a Samsung Electronics partner company.

There is another case demonstrating the importance of technology development. Three A Logistics Inc., based in Seongnam, is a company manufacturing smart sensor tag ICs using near-field communication (NFC) technology and is conducting research on localizing NFC tag ICs for smart logistics systems through the component localization support project.
Three A Logistics is making remarkable progress, expecting a 150% sales increase compared to the previous year (113 billion won). A Three A Logistics official stated, "Through Gyeonggi Province's component localization development support, we were able to concentrate on technology development necessary for entering new fields, and this appears to be resulting in sales growth." Three A Logistics was selected as an outstanding venture company in 2020 by the Korea Venture Business Association and is preparing for KOSDAQ listing targeting the second half of 2021.

Through participation in the component localization support project, companies can concentrate on technology development, and as a result, gain opportunities to enter global markets and achieve increased sales—this is the consensus among participating companies.

Since 2016, the province has been implementing the "Global Company-Linked Component Localization Support Project," which supports the localization development of small and medium-sized enterprises in materials, parts, and equipment within the province and connects them with purchasing departments of global equipment companies to create overseas market entry opportunities. Selected companies receive support of up to 100 million won per company for costs associated with prototype manufacturing for localizing materials, parts, and equipment.

Next year, in addition to providing support for prototype development for component localization, the province plans to create an opportunity to expand sales channels for small and medium-sized enterprises within the province through pitching day events targeting purchasing managers of large companies and global companies that have entered the domestic market.

The component localization support project is open to applications from small and medium-sized enterprises in the semiconductor/display, automobile, and fourth industrial revolution-related sectors with headquarters or factories in the province. Next year, the biotech and pharmaceutical sectors will also be added. Additionally, companies that prove their linkage with global companies by submitting purchase confirmation documents and recommendation letters from global companies may receive preferential evaluation. Recruitment for next year's participation will be posted around the end of January 2021 on the Gyeonggi Techno Park website (www.gtp.or.kr) and the ezbiz website (www.egbiz.or.kr)