[Asia Economy Reporter Park Hyungsoo] Yuil Robotics is showing strong performance. The company continues its rebound trend following Hyundai Motor's announcement to invest $5 billion (approximately 6.3 trillion KRW) in future growth industries such as robotics.
As of 9:52 AM on the 24th, Yuil Robotics is trading at 22,300 KRW, up 14.36% from the previous day.
Earlier, on the 22nd, Hyundai Motor Group Chairman Chung Euisun stated after meeting with U.S. President Joe Biden, "We will invest an additional $5 billion in future growth industries such as robotics, urban air mobility (UAM), autonomous driving software (SW), and artificial intelligence (AI)." Hyundai Motor acquired Boston Dynamics, a leading company in robot control, in 2020 for about 1 trillion KRW. Following the announcement to invest $5.5 billion to build an electric vehicle factory in Georgia, USA, Hyundai is also investing $5 billion in future new businesses. The total investment by Hyundai Motor Group in the U.S. amounts to $10.5 billion (approximately 13.37 trillion KRW).
The robotics industry expects an increase in demand for industrial robots as major Korean conglomerates such as Samsung Electronics and Hyundai Motor decide on large-scale investments in the U.S. With advancements in process automation technology, labor costs have become relatively less important when deciding manufacturing investment locations. By expanding automated processes, production efficiency can be improved even in the U.S., where labor costs are high.
Kim Jisan, a researcher at Kiwoom Securities, explained, "South Korea has presented the vision of becoming one of the world's top four robotics powers," adding, "to establish a systematic and consistent support foundation for the robotics industry, the ‘Intelligent Robot Development and Distribution Promotion Act’ was enacted in 2008."
He continued, "According to the law, a basic plan is established every five years," and "currently, during the third basic plan period (‘19?’23), the main tasks are expanding the distribution of manufacturing robots, fostering four major service robots, and strengthening the ecosystem."
Furthermore, he emphasized, "The key goal is to expand the robotics industry market size to 15 trillion KRW by next year and increase the number of robotics specialized companies with sales exceeding 100 billion KRW to 20," adding, "the plan is to expand the distribution of manufacturing robots to 700,000 units."
He also analyzed, "The Yoon Suk-yeol administration has raised the robotics industry goal to becoming one of the world's top three powers," and "included AI robots along with semiconductors and secondary batteries as strategic technologies for fostering." He explained, "To advance manufacturing, 10,000 manufacturing safety robots will be distributed at industrial sites," and "there are plans to distribute wearable robots and other smart safety devices."
Yuil Robotics, established in 2010, is a manufacturer of plastic injection molding automation equipment and industrial robots. The upstream industries of plastic injection molding automation systems include various manufacturing sectors such as automotive, home appliances, medical devices, and secondary batteries. Major clients are first-tier vendors of Samsung, LG, Hyundai Motor, and Kia Motors. The company developed Cartesian robots in 2018 and currently holds a portfolio of industrial robots ranging from multi-joint robots to collaborative robots. It is in the process of expanding its portfolio by supplying industrial robots to existing injection molding automation system clients.
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