Diostech Completes Advanced Automation Facility Setup "No Involvement of Former Executives in Embezzlement... Strengthening Core Business"

[Asia Economy Reporter Hyunseok Yoo] Dios Tech, a smartphone lens company, has embarked on cost reduction and maximization of production efficiency through process automation. Regardless of the embezzlement issue involving former management, the company aims to strengthen its core business and become a leading domestic lens company, supported by a favorable business environment.

A Dios Tech official stated on the 20th, “We have completed automation of the three major automation facilities: resolution inspection device, light diffusion processor, and air blowing equipment,” adding, “This has resulted in about a 25% reduction in labor costs, which is expected to be reflected in our performance.”

The company plans to further automate three devices, including external inspection equipment, to build a system that increases productivity by more than 15% compared to the current level by the first half of next year. It aims to raise the process automation rate to 90% within the next three years.

Currently, Dios Tech’s process automation rate reaches 70%, the highest level in the industry. Amid the global smartphone market downturn caused by the novel coronavirus (COVID-19), the company’s strategy is to enhance quality competitiveness and production efficiency by increasing the automation rate.

Regarding the embezzlement issue involving former management last week, the company stated, “The embezzlement issue involving approximately 4 billion KRW by former management is completely unrelated to current business,” and clarified, “These matters occurred before the 2016 merger of Dios Tech (formerly Tellus, surviving corporation) and Dios Tech (extinct corporation) and have no connection with the current Dios Tech or its management.”

It added, “From an accounting perspective, all losses have already been recognized, so there is no impact on the current financial statements,” and apologized to shareholders, saying, “We regret to deliver unfortunate news while striving to secure technological leadership and competitiveness.”

The official emphasized, “We will actively respond to the Korea Exchange’s requirements and do our best to resume trading after a positive evaluation of the delisting suitability review,” and stressed, “We will devote all our efforts to minimizing the impact on shareholders.”.