Hyosung R&D Business
Labs Focuses on State-of-the
-Art Materials Development

Leads the industry with C&D Creativity Key to Future Industry

Technology development is the most important task for the nation to ensure its continued development. Development of new technology and new resources has been the key to steady growth of enterprises. Toward that end, the importance of research and development (R&D) has so far been emphasized. But these days, there is one more significant factor in that respect -- connect and development (C&D) -- which means positively utilizing technology and ideas developed by other companies. NewsWorld interviewed Sung Chang-mo, president of Hyosung R&D Business Labs, who is regarded as a renowned expert in the area of high technology materials.
Question: First, would you please tell us about Hyosung's development of new resources?
Answer: Hyosung R&D Business Labs is a research institute set up by a private business. Hyosung founder Cho Hong-je established the institute in 1970, ahead of Samsung, when Korea saw a sort of industrial revolution. Cho stressed the need for investment in research and development.
I entered university in 1975 and majored in metal engineering. At that time, Hyosung ranked fifth among all business groups. Returning from the United States after 23 years, I found Hyosung lagging behind at 30th. (Sung served as professor emeritus at Massachusetts State University where he was in charge of research of state-of-the-art materials and the commercialization of Nanotechnology.)
We plan to raise the rank of Hyosung to the top 10 in the business sector by focusing on research and development centered around Hyosung. The institute has been leading Hyosung's bids to develop technology with 220 researchers in the areas of textiles and chemistry, 150 from Hyosung Heavy and 80 from Nautilus Hyosung. Hyosung Corp. has 6.2 trillion won in turnout including 2.5 trillion won in the area of textiles and chemistry.
Hyosung has been manufacturing the world's No. 1 'tire cord,'which is a specially-made textile beneath the tire rubber. This is one of the most important parts of the tire.
Hyosung now accounts for 32 percent of the global market with the product. Hyosung has also been manufacturing the so-called span tex, with which it takes the world's No. 2 status. The name of 'span'is well known among women, as it has already become popularized for use in undergarments.
Hyosung began business with textiles and is expanding its business scope to tire cord and span tex. Though it has lagged behind other major conglomerates in terms of ranking, the group has been briskly conducting technology integration and networking in specialized areas.
The biggest setback facing Hyosung is that it lacks human resources well versed in global affairs. It has been very difficult to employ high quality people who studied in foreign nations. To cope with the problem, we have been taking various measures, like sending workers to foreign universities, for instance, to provide them with opportunities to become acquainted with advanced technologies and culture.
I believe the problem of human resources will be resolved smoothly when the nation reaches its goal of $40,000 in national per-capita income.
Q: You have been stressing that technology without commercial merits cannot be regarded as technology.
A: It means just studying hard has no special meaning. Commercializing should be the prerequisite of any study. In particular, businesses are supposed to yield profits and make money. They are not meant for research only.
Q: Can you tell us about the importance of C&D, which is the fourth generation of R&D and its future direction and significance?
A: The C&D (Connect & Development) system began in the United States, initiated by Proctor & Gamble, a leading manufacturer of daily necessities. P&G has been operating a new synergy system under which all production lines can generate a consolidated effect.
For instance, P&G's line for the production of diapers has been making a variety of products based on the technology developed both by insiders and outsiders.
The diaper line has been seeing 8 trillion won in sales and has been able to manufacture new goods through the "synergy"program.
As I earlier knew about the synergy program, I have been trying to implement it for the Hyosung lines. In April 2006, I visited P&G to explain about Hyosung's differentiated technologies and basic skills for the manufacturing of high-tech products.
Hyosung has been maintaining close ties with Batel of the United States, which currently has 15,000 researchers and a 2 trillion won annual budget. Our researchers frequently visit the U.S. firm to discuss research and development projects. This is a type of C&D.
In addition, Hyosung has also signed a contract for technology development with leading domestic and foreign institutes like Massachusetts University and North Carolina University in the United States and Tsinghua University in China. We have also been carrying out 15 projects with domestic institutes and professors.
In the past, businesses engaged in research and development at a 100 percent in-house level, but now they need to adopt the fourth generation R&D of connecting in-house and outside technologies. As a matter of fact, major industrial nations have already adopted the trend, prompting the need for us to follow the lead.
Q: Will you talk about future technology development policies and the direction of the commercialization of those technologies?
A: I believe the Ministry of Commerce, Industry and Energy and the Ministry of Science and Technology have set appropriate policies in a desirable direction. But I think we should take different approaches regarding details in the process of carrying out the policies and assessment. The time has passed when we assess professors based on pieces of papers. The key competitive factor in the future is nothing other than creativity. Businesses are destined to fail unless they conduct customer-oriented research and development.
From now on, we must be able to see and manage the global market beyond the mere domestic market. Relatively small countries like Ireland and Finland register some $40,000 in national per-capita income though they have less than 10 million in population. But South Korea's national per capita income is about $20,000 with a population of 50 million. We will be able to break into the $40,000 era with a new cultural paradigm, boosted by epoch-making industrial and scientific policies.
Development of science and technology is the locomotive that enables the nation to enter the $40,000 income era. In fact, Korea lacks basic technologies. Though some institutes boast that they have developed the world's No. 1 technology, we still have a long way to go. In many respects, we lag behind China and India even though we have been chasing the United States and Japan in some areas. The incoming government needs to carry out efficient scientific and industrial policies in consideration of such factors. nw

Sung Chang-mo, president of Hyosung R&D Business Labs

(counterclockwise) Sung Chang-mo, president of Hyosung R&DB Labs, explains his research institute's activities during an interview with NewsWorld President and Publisher Elizabeth M. Oh,; a facade of Hyosung R&DB Labs building,; tire fabrics,; and tire cord.