[BizLeader] Yeoyounggil, CEO of SPG, "At the Forefront of Domestic Robot Reducer Production"

Selected as a Leading ‘SoBuJang’ Company with Precision Reducers
The Only Company Capable of Mass-Producing Yuseong, SH, and SR Reducers

Recently, leading domestic groups such as Samsung, LG, and Hyundai Motor have identified robots as a new growth engine. Until now, the domestic robot industry developed excellent robot technologies but relied on imports for core components. The three main components of robots are reducers, controllers, and sub motors. Among them, the reducer is a key component, accounting for 30-40% of the robot product cost. Robot reducers are classified into planetary, SH, and SR reducers based on precision and reduction ratio. SH reducers are ultra-compact precision reducers mainly applied to collaborative robots, while SR reducers are medium-to-large precision reducers mainly used in industrial robots. Planetary reducers, compared to SH and SR, have relatively lower precision but are mainly used in areas requiring high torque.

About 75% of the Global Robot Reducer Market Dominated by Japanese Companies

The Ministry of Trade, Industry and Energy has newly selected 23 'Sobujang' (materials, parts, and equipment) top companies possessing core strategic technologies. SPG, the number one domestic company in precision geared motors, has been recognized for its core strategic technology in Sobujang by successfully mass-producing all three major robot reducers: planetary, SH, and SR reducers. Robot reducers have been virtually monopolized by Japanese products in the global market, including Korea. Japan's Harmonic Drive Systems (SH reducer sector) and Nabtesco (SR reducer sector) account for about 75% of the global robot reducer market.

The government plans to focus on nurturing domestic robot reducer technology capable of competing with Japanese products as a core strategic technology. SPG will receive up to 10 billion KRW in research and development (R&D) funding over the next five years to invest in upgrading existing products and developing high-precision reducers. SPG plans to further strengthen its unique competitiveness by supplying precision reducers required for everything from industrial robots to collaborative robots in an integrated manner.

Yeoyounggil, CEO of SPG (right), is attending the designation ceremony for the '3rd SoBuJang Top Companies' and posing for a commemorative photo with Jang Youngjin, 1st Vice Minister of the Ministry of Trade, Industry and Energy.

Japanese Companies Lower Prices After SPG's Development

At SPG's headquarters in Namdong Industrial Complex, Incheon, CEO Yeo Young-gil said, "As SPG developed precision reducers, Japanese companies that had monopolized the market began lowering their prices," adding, "Even if domestic companies do not use SPG products, foreign currency savings are already occurring."

Precision reducers, which act as joints in industrial robots, connect gears to motors that perform rotational motion to produce the desired force and speed. The energy transmitted from the motor must be designed to avoid deformation and damage at the micrometer level. High precision and durability are required. Robot reducers, which require advanced technology and precise production capabilities, are a supplier-driven market dominated by Japanese companies.

CEO Yeo explained, "Producing precision reducers requires production, design, and analysis technologies," and "The most important is production technology; only companies with at least 30 years of accumulated know-how can mass-produce precision reducers at the level needed for collaborative robots."

Founded in 1991, SPG has devoted 32 years to domestic production of reducers and motor control technologies. Global companies such as Amazon and Coca-Cola also use SPG products. The driving force behind SPG's ability to develop precision reducers and establish mass production within a few years is the craftsmanship derived from its long history. Initially, Japanese products monopolized the domestic geared motor market, but now SPG exports to the Japanese market as well. Last year, SPG achieved sales of 440.5 billion KRW and operating profit of 25.5 billion KRW. Based on its long experience, SPG has improved production efficiency to secure price competitiveness compared to competitors while maintaining a high operating profit margin.

CEO Yeo confidently stated, "We can compete with any company worldwide in all fields except aerospace and precision surgical robots." He said, "SH reducers are supplied to Rainbow Robotics as a leader, wafer transfer equipment (OHT), and semiconductor equipment companies," and "SR reducers have started to be supplied to semiconductor equipment companies and precision equipment companies in the Americas." He added, "As domestic conglomerates enter the collaborative robot market, SPG's business opportunities will increase," emphasizing, "Customer satisfaction is high based on price competitiveness and fast delivery." The company also developed materials that maximize reducer performance in collaboration with domestic steel companies.

Supplying Reducers to Global Collaborative Robot Companies... Overseas Expansion to Accelerate

With the rapid growth of the collaborative robot market recently, demand for SH reducers is expected to increase. The difference between collaborative robots and conventional industrial robots lies in collaboration with humans. Industrial robots require safety fences to block human access according to usage regulations. Collaborative robots with built-in safety features can be used in the same space as workers. Unlike industrial robots, sensors prevent collisions. The application fields are expanding beyond traditional manufacturing to service sectors. Rainbow Robotics, invested in by Samsung Electronics, has secured global competitiveness in the collaborative robot field.

SPG, which has been approved by globally competitive collaborative robot companies, will participate in various overseas exhibitions from next month to secure new customers. CEO Yeo, who has encouraged internal development until now, will personally meet potential customers in the United States, Europe, and other regions. To grow into a global precision reducer company, SPG will participate in six domestic exhibitions and nine overseas exhibitions in the US, Germany, China, India, and others this year alone. SPG earned 76% of its sales overseas last year. It is well known in overseas markets through a sales network of 75 dealerships in 25 countries over the past 20 years. Based on its long-established overseas network, SPG's overseas expansion of precision reducers is expected to accelerate.

Tests for applying SPG precision reducers are underway at overseas companies in the US, China, Israel, Turkey, and others. SPG will additionally supply precision reducers related to defense and security projects in the first half of the year. From the second half of this year, it is preparing to supply precision reducers for logistics robots, wearable robots, and quadruped robots.

Investment in capacity expansion is also accelerating. Within this year, SPG plans to establish facilities capable of producing 150,000 SH reducers and aims to have the capacity to produce 80,000 SR reducers annually by 2025.

SPG also cited the emergence of domestic demand for precision reducer replacement as a factor for performance improvement. When industrial robots were first introduced in domestic manufacturing sites, all precision reducers were Japanese products. After using robots for a certain period, errors occur in reducers, similar to joint problems in athletes. CEO Yeo explained, "Japanese reducer companies try to supply reducers only through robot manufacturers," adding, "Manufacturers had no choice but to buy replacement reducers at high prices." He continued, "As trust in SPG products grows, the market share for replacement parts will increase," proudly stating, "We are replacing tens of thousands of industrial robot precision reducers annually with domestic products."

SPG's SH Reducer for Collaborative Robots in Mass Production