LCD Optical Film Specialist Shinhwa Intertek
Invests 23.4 Billion KRW Strategically in Metaverse Platform OS Company Epiton
Receives Epiton Film Design Technology Utilizing Optical Technology
Contracts with US Big Tech Firms and Global Automakers
"Aiming for 500 Billion KRW Sales Within 3 Years Through High-Value-Added Business"
[Asia Economy Reporter Kwak Minjae] Shinhwa Intertek is a company that developed the first TV cathode ray tube tape in Korea in 1983. In 2018, it became the world's first to mass-produce optical films for LCD panels. LCD optical films are attached to the backlight unit (BLU), which serves as the light source for LCD panels, providing high color reproduction and wide viewing angle effects, thereby helping to improve TV picture quality. Shinhwa Intertek, listed on the KOSDAQ, is an affiliate of the Hyosung Group. Hyosung Chemical is the largest shareholder with a 20% stake. Major clients include TV manufacturers Samsung Electronics and Sony, as well as display manufacturer Samsung Display. The company mainly produces quantum dot (QD) films used in Samsung Electronics' QLED TVs.
Shinhwa Intertek is transforming from an LCD optical film company into a mass producer of smart films used in metaverse (extended virtual world) devices. Metaverse devices are equipment that vividly build virtual reality platforms within the metaverse. Representative examples include smart glasses and future vehicles, to which Shinhwa Intertek's smart films can be applied. Smart films function by bending and reflecting light at angles set by developers so that graphic information is accurately delivered to the human eye. Since metaverse smart films require the reflected light to be recognized by the human eye, they demand sophisticated technology. Kim Haktae, CEO of Shinhwa Intertek, said, "We are ready to target the metaverse market, a new industry, with smart films utilizing nearly 30 years of accumulated display material technology."
To this end, Shinhwa Intertek became a strategic investor (SI) in November last year in Epitone, a company specializing in metaverse platform operating systems. The total investment amount was 23.4 billion KRW, equally invested by Hyosung and Shinhwa Intertek. Epitone, located in Delaware, USA, is a developer of automotive optical components founded by Hong Seonghoon, who worked as an executive in augmented reality (AR) technology development at Samsung Advanced Institute of Technology. Shinhwa Intertek receives software and optical technology necessary for metaverse extended reality (XR) implementation from Epitone.
CEO Kim said, "Smart films require very precise technology, such as film design technology that controls the dispersion of light and can accurately reflect light at a 55-degree angle." He added, "If Epitone's film design technology, which utilizes software and optical technology, is combined with Shinhwa Intertek's display coating technology, mass production of smart films used in metaverse devices will be possible."
CEO Kim worked for 31 years at Samsung Electronics as a researcher and also served as head of the Canadian branch. He joined Shinhwa Intertek in 2018 and contributed to turning the company profitable. He judged that the company's main product, optical films for LCD TVs, has clear limitations as growth is expected to slow. This is because the optical film market continues to shrink with the emergence of OLED TVs, which emit light by themselves and do not require optical films.
Exterior view of the Shinhwa Intertek factory located in Cheonan, Chungnam. [Photo by Shinhwa Intertek]
Ultimately, his belief that the company must develop high value-added products to continue growing led the company into the metaverse market. Shinhwa Intertek stated, "We have completed basic technology development for smart glasses with a major US big tech company," but kept the company name confidential. The product is scheduled for mass production next year. To this end, an investment of 20 billion KRW is underway at the headquarters’ Cheonan plant in Chungnam Province. The company is also negotiating contracts to supply smart glasses, HUD (Head-Up Display), and integrated platforms to global automakers. CEO Kim stated, "Through high value-added business selling optical modules with attached smart films, we aim to achieve sales of 500 billion KRW within three years."
Cheonan, Chungnam = Reporter Kwak Minjae
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