[Vitamin SME] "The Harder It Gets, Investing in Employees Is the Key to Overcoming COVID-19"

<1> Korea Tooling, a Cutting Tool Manufacturing and Distribution Company
Continues Welfare Support Despite Sales Decline
Replaces Book Purchases and Online Education Expenses
Air Circulation with Automatic Plant Cultivator
Completed Automated Logistics Warehouse in 2022

There are small but strong companies overcoming the crisis by uniting labor and management despite facing difficulties in management due to the novel coronavirus infection (COVID-19) situation. The source of strength that enables these companies to overcome hardships amid numerous environmental changes such as economic downturn caused by COVID-19 is coexistence. They are enhancing competitiveness through various methods such as operating in-house welfare systems that help employees enjoy a happy work life and developing and investing in new technologies for sustainable growth. We introduce 'Vitamin Small Giants' that invigorate by having managers and workers consider each other and move forward together toward common goals.

Lee Jae-geon, CEO of Korea Tooling, is posing with a tool product at the headquarters in Geumcheon-gu, Seoul.

[Asia Economy Reporter Kim Daeseop] Korea Tooling, a company specializing in manufacturing and distributing cutting tools, supports employees by covering the costs of online courses related to 'digital marketing.' This is to help improve knowledge and competitiveness to respond to the untact trend and the post-COVID-19 era. Employees present and discuss what they have learned online at the weekly meetings held every Tuesday.

Lee Jaegun, CEO of Korea Tooling, said, "Due to the impact of COVID-19, rapid changes are occurring in the business environment and market, such as the expansion of untact consumption and the growing importance of digital marketing," adding, "Employees' efforts for self-development and competitiveness improvement are connected to the company's growth."

Despite experiencing a decline in sales due to the COVID-19 situation, Korea Tooling maintained its in-house welfare system for employee education. Although cash flow management is challenging when sales decrease, support for employee education expenses continues. The company replaced the annual book purchase support with online education expenses in line with the transition to a digital economy.

Lee Jae-geon, CEO of Korea Tooling, is smiling brightly next to the large automatic plant cultivators installed throughout the workplace for employees' health and a comfortable working environment.

CEO Lee emphasized, "Employees are also making great efforts to overcome the company's difficulties caused by the sales decline together," and added, "Through consideration and communication between management and employees, the company will open the future."

Korea Tooling, located in Gasan Digital Industrial Complex, Geumcheon-gu, Seoul, started as a distribution business in 1996 and later expanded into manufacturing, exporting cutting tools to 19 countries overseas. Although it is a small company with about 20 employees, it recorded sales of 16.5 billion KRW last year.

Throughout the office and factory, 10 large automatic plant cultivators are installed to help with air circulation. Each is an air purification device costing 1.5 million KRW. The company is also equipped with expensive temperature, humidity, and antibacterial control devices, as well as a break room and fitness equipment. CEO Lee said, "Employees' health and working environment are very important," adding, "We invest in these and cooperate with employees to achieve common goals."

Lee Jae-geon, CEO of Korea Tooling, is discussing management activities to overcome the COVID-19 crisis at the headquarters in Geumcheon-gu, Seoul.

Korea Tooling is exploring various measures such as distribution structure innovation and expanding overseas sales channels to overcome COVID-19 damage. The company plans to complete an 'automated logistics warehouse' in Anseong, Gyeonggi Province, in 2022 and has already secured a site of 4,628 square meters. The automated logistics warehouse will require an investment of 6 billion KRW. They have also newly hired personnel dedicated to tasks related to the warehouse's completion.

CEO Lee explained, "To ensure the company's sustainable growth, we must innovate the distribution structure, and to respond to the transition to a digital economy, an automated logistics warehouse is essential for fast delivery and efficient inventory management."

Korea Tooling serves as the chair company of the G-Valley Industrial Association. CEO Lee was inaugurated as the chairman of the G-Valley Industrial Association in April. The G-Valley Industrial Association is a gathering of representatives from the Seoul Digital Industrial Complex (2nd and 3rd complexes) knowledge industry center operation committees. It works to improve difficulties faced by about 4,000 tenant companies within each knowledge industry center and also protects their rights and interests.

Lee Jae-geon, CEO of Korea Tooling, is posing next to the G Valley Industrial Association plaque attached at the entrance of the headquarters in Geumcheon-gu, Seoul.

CEO Lee pointed out traffic issues as a major difficulty for tenant companies in the industrial complexes around Gasan-dong and Doksan-dong. He said, "Traffic congestion is severe, hindering smooth logistics movement, and there is significant inconvenience for tenant companies and workers during commuting hours," adding, "We have been continuously proposing solutions to Geumcheon-gu Office, such as early opening of the underpass near the industrial complex and requesting express train stops at Doksan Station to resolve traffic problems."