The exterior of 'Floatron,' an Innobiz company that is on a growth trajectory despite the challenging COVID-19 situation. [Photo by Floatron website]
Innobiz Association Introduces Companies Maintaining Growth Despite COVID-19 Situation
[Asia Economy Reporter Kim Jong-hwa] Although the global economy is struggling due to the COVID-19 pandemic, companies that continue to maintain steep growth through continuous technological development and workforce expansion during the COVID-19 situation are gaining attention.
On the 10th, the Innobiz Association introduced several companies that have entered a growth trajectory by hiring new employees even amid the COVID-19 situation, maintaining employment through flexible work systems, innovating technology, and pioneering markets despite difficulties.
A representative company is 'Floatron Co., Ltd. (CEO Jang Guk-jin)'. Floatron is a specialized manufacturer of 'flow meters' and 'flow measurement systems' and was selected last year as one of the 'Top 100 Small and Medium Materials, Parts, and Equipment Companies' by the Ministry of SMEs and Startups, recognized as a company with the best domestic technology.
Despite the difficulties everyone faced during the COVID-19 situation, Floatron aggressively invested by newly hiring three high-level personnel for continuous technological development and separately organizing an external project team.
As a result of these efforts, Floatron’s technological capabilities were recently recognized in the market. Accordingly, the Small and Medium Business Corporation converted existing convertible bonds into equity and provided government support for facility investment costs and working capital necessary for the commercialization of successful R&D projects. Turning crisis into opportunity through aggressive management activities, the company’s export performance has sharply increased by more than 20% compared to the same period last year.
The cosmetics manufacturer 'CKN International (CEO Yeom Jeon-geun)' is a successful case of actively utilizing flexible work systems. As COVID-19 spread, the supply of raw materials imported from China was disrupted, causing setbacks in finished product production.
To resolve this, the company decided to actively implement the flexible work system, which had previously existed only as an internal regulation. Working hours were adjusted by dividing employees into manufacturing, quality control, and sales, and self-imposed shutdowns were conducted. Meanwhile, to boost employee morale, salaries were maintained, and management shared the burden.
Thanks to the united efforts of the employees, existing clients have been managed more solidly, and new export destinations in Japan have been additionally secured, maintaining sales similar to the same period last year.
The press mold and automotive parts manufacturer 'Donggu Enterprise Co., Ltd. (CEO Ryu Byung-hyun)' faced a major crisis due to the suspension and shutdown of operations by domestic major automobile manufacturers. However, the management did not give up. The company focused on maintaining employment by encouraging vacations without adjusting personnel or reducing salaries.
In response, employees stepped up to save the company. They devoted more effort to discovering new markets and continuously worked to respond to existing clients and secure potential customers without shrinking despite the COVID-19 situation. As a result, Donggu Enterprise achieved success with new stock issuance. Not only did it offset decreased sales by securing new clients, but it also recorded sales expected to grow compared to the previous year.
It is a reality that many small and medium enterprises face direct threats to survival due to difficulties in procuring raw materials, production setbacks, and sharp demand contractions causing drastic sales declines amid COVID-19. On the other hand, companies that have overcome the crisis by sharing hardships between labor and management still exist.
Cho Hong-rae, chairman of the Innobiz Association, emphasized, "These Innobiz companies share the commonality of overcoming crises by not yielding to difficult circumstances but rather hiring new high-level personnel, maintaining employment through flexible work systems, and sharing hardships between management and employees," adding, "Corporate technology leads to business performance, creating quality jobs and becoming a strength that supports companies in difficult times."
'Innobiz companies' refer to small and medium enterprises that secure competitiveness through technological innovation or have potential for future growth and receive preferential government support. The term is a combination of 'Innovation' and 'Business.'
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