[Vitamin SME] "A Bowl That Made Cosmetics Shine, Employees That Made the Company Shine"

<3> Miyeong Co., Ltd., Manufacturer of Cosmetic Containers and Display Film Direct Supply Containers

Jeon Gyeong-guk, CEO of Miyeong Co., Ltd., explaining the cosmetic containers produced by the company

[Asia Economy Reporter Kim Jong-hwa]There are small but strong companies overcoming the crisis by uniting labor and management despite difficulties in management caused by the novel coronavirus disease (COVID-19) pandemic. The source of strength for these companies to overcome hardships amid numerous environmental changes such as economic downturn due to COVID-19 is coexistence. They are enhancing competitiveness through various methods such as operating in-house welfare systems that help employees enjoy happy work lives and developing and investing in new technologies for sustainable growth. We introduce 'Vitamin Small Giants' that energize by caring for each other and moving forward together with a shared goal between management and workers.

"What makes cosmetics shine is the container, but what made our company shine is the employees."

Jeon Gyeong-guk, CEO of Miyeong Co., Ltd., said, "I am grateful that they trusted and followed me even in difficult times. Because of them, I was able to endure without giving up until today." Located in Namdong Industrial Complex, Incheon, Miyeong Co., Ltd. was established in October 2003 and produces cosmetic containers and display film direct supply containers in various shapes, colors, and sizes.

Confident in sales recovery through employees’ support, technology, excellent quality, and design

Currently, the company can produce up to 300,000 containers per day and up to 9 million containers per month, equipped with facilities that enable one-stop production from mold manufacturing to raw material injection and printing. They supply containers to most major domestic cosmetic manufacturers such as Amorepacific, LG Household & Health Care, Missha, and The Face Shop.

Sales were 20.7 billion KRW in 2018 but dropped to 12.4 billion KRW last year due to the impact of THAAD (Terminal High Altitude Area Defense) and other factors. CEO Jeon said, "This year has become more difficult due to COVID-19, but sales are expected to remain similar to last year as containers for hand sanitizers are selling well," adding, "We are always ready to produce large quantities of high-quality products whenever orders come in, so I am not too worried."

The biggest reason CEO Jeon is confident despite difficulties is the support of the employees. He said, "When the situation worsened due to COVID-19, the management staff first suggested reducing their salaries, and housewife employees said they would work without special overtime pay, which moved me deeply," adding, "Employees’ loyalty is strong enough that some came to work the day after appendectomy surgery. As a manager, I always feel sorry for the employees."

Jeon Gyeong-guk, CEO, with employees at the factory

Despite not having large sales, the company takes care of employee welfare. They help employees accumulate lump sums using the Tomorrow Filling Deduction system and provide 2 million KRW in tuition support when children of employees who have worked for more than five years enter university.

Another source of CEO Jeon’s confidence lies in 'technology,' excellent product quality, and outstanding design. They possess various technologies such as the production technology for 'display film direct supply containers' and the patent for 'airtight shadow containers.'

The display film direct supply container is a device that stores and transports expensive films used in display devices and must have essential functions such as anti-static, contamination prevention, and product damage prevention. It is designed so that the film can be directly fed into the production line without intermediate steps, saving logistics and quality control costs. It is a special container.

The 'airtight shadow container' is a patented technology unique to Miyeong. Shadow contents containing moisture must always maintain a sealed state, but soft contents can be damaged if impacted and detached from the container. This special cosmetic container has a circular ring installed inside that holds the contents firmly in place, helping the contents settle well in the container.

"I will grow the company to stand shoulder to shoulder with the industry’s number one company together with the employees"

When the design development team designs trend-leading designs, technology supports producing these designs in containers of various colors and shapes. They can promptly manufacture any shape of container requested by clients.

CEO Jeon recalled the difficult early days, saying, "I took over an old, messy, debt-ridden factory with only one cream container mold left," adding, "With no money, I did all kinds of work such as electrical work and welding myself, and because I lacked food expenses, I endured by eating different kinds of ramen for lunch and dinner every day."

Jeon Gyeong-guk, CEO of Miyeong Co., Ltd., explaining various cosmetic containers produced by the company.

He said, "I took over Miyeong Industry, which had about 800 million KRW in debt due to investment fraud, instead of investment funds, and it took seven years just to repay the debt," adding, "I grew a company with only 50 million KRW in sales on a mountain of debt into a 20 billion KRW company in 15 years."

Using the only remaining cream container mold as an asset, he devoted himself to technology development, and now the company supplies about 180 places with over 1,200 items. CEO Jeon expressed continuous gratitude to the executives and employees who have been with him for a long time. He said, "Director Jang Mu-cheong was a family head who asked how he could receive a salary when the company was struggling in the early days of the startup, and Manager Lim Ji-woon quit his previous job and willingly joined despite knowing the difficulties with funds and employees."

He also did not forget his gratitude to the employees who stayed with the company when the management changed to him from Miyeong Industry and could have moved to better conditions elsewhere. "We kept the company name from Miyeong Industry to Miyeong Co., Ltd. to not forget our gratitude to them," he said, expressing his ambition, "Sales have only temporarily decreased. I will grow the company to stand shoulder to shoulder with Yeonwoo, the industry’s number one company, together with the employees."

- Established: October 2003

- Company name: Miyeong Co., Ltd.

- Main products: Cosmetic containers, display film direct supply containers

- Sales: 12.4 billion KRW (2019), 20.7 billion KRW (2018)