[Good Job SME] ⑤ What We Make Are Bolts, What We Take Responsibility For Is 'Safety'

Sunil Die Pass, Manufacturer of Automotive Bolts
Interview with CEO Kim Ji-hoon
A Sense of Duty for the Safety of Car Drivers

In the early 2010s, an explosion occurred at a water tank in a chemical plant of a major domestic conglomerate. The cause was a defective 'bolt.' This bolt cost only 500 won each, with a manufacturing cost of just 100 won. If a proper bolt had been used, the accident could have been avoided, but trying to save 100 won led to the factory shutting down.

Seonildiepass, a manufacturer of bolts for automobiles, is collecting such external failure cases under the title "Because of a Single Screw." Although it may seem like "just a single screw," this is to remind people that bolts are directly linked to safety. While they make bolts, the sense of responsibility for the safety of the people who drive the cars has been the driving force sustaining Seonildiepass for over 40 years. We met CEO Kim Ji-hoon at Seonildiepass’s factory in Jincheon-gun, Chungcheongbuk-do, where 6 million automotive bolts are quenched daily, to hear more details.

Kim Ji-hoon, CEO of Sunil Diepass, is explaining about bolts for automobiles.

CEO Kim said, "Safety is the essence of this work," and added, "Manufacturing should create value before making money." Typically, about 2,000 bolts go into one car, and there are many types. At Seonildiepass’s factory, they deliver over 500 types daily. Even a single faulty bolt among these numerous ones can compromise the safety of a vehicle. Kim explained, "According to a global automaker’s research, bolts account for only 4% of the cost of a car, but 90% of the assembly time is spent tightening bolts, and 94% of quality issues arise from bolts." Since automotive bolts can be directly linked to human lives, their quality must be managed more strictly than any other product.

Seonildiepass’s quality management is based on technology accumulated over more than 40 years. The company started as Seonkyung Machinery, established by the Seonkyung Group in 1976, and was independently acquired by Kim Young-jo, the first college graduate hired by Seonkyung Group, in 1983, becoming Seonil Machinery. At that time, domestic production of automotive bolts was impossible. Seonildiepass succeeded in domesticating mold manufacturing technology, production technology, and equipment for automotive bolts, growing alongside Korea’s automotive industry. CEO Kim explained, "Bolts are a collection of fundamental technologies such as molds, heat treatment, and plating. We learned and accumulated basic technologies from Japan, Germany, the Netherlands, and Switzerland, and have built know-how by supplying automotive companies for 40 years."

However, the 40-year history was not without challenges. The ups and downs of the automotive industry directly affected the company. CEO Kim, who joined in 1999, witnessed the company’s crisis as automakers collapsed due to the aftermath of the foreign exchange crisis. He took over as CEO in 2007 after his father, Chairman Kim, and in 2008, the global financial crisis sharply reduced orders. The factory operated only three days a week due to decreased orders, but CEO Kim persevered by providing education to employees instead of laying them off. "Even if we receive a little less, let’s all go together" remains his unchanged management philosophy.

Smart Factory of Seonil Diepass located in Jincheon-gun, Chungcheongbuk-do

This philosophy is also evident in the process of converting the Jincheon factory into a smart factory. CEO Kim said, "A smart factory is not about reducing people," adding, "Instead of machines doing the work people used to do, it gives employees more meaningful tasks." Once the smart factory conversion is completed this summer, forklifts driven by people will disappear inside the factory, creating a safer and more efficient working environment. Through this, Seonildiepass has achieved 25% sales growth over the past three years, along with improved price competitiveness and profitability. They share part of the net profit with employees, distributing the results.

Seonildiepass is responsible for safety by supplying bolts not only to the domestic automotive market but also globally. They supply engine fastening bolts, the heart of the car, and hub bolts that fasten wheels to the global market. In the case of hub bolts, one out of every eight new cars worldwide uses Seonildiepass’s products. Their export performance, including local exports, exceeds 80 million dollars. There is still vast potential for growth. CEO Kim said, "We will expand our market share through global market penetration and grow as a core fastening and driving parts company in the era of eco-friendly and autonomous vehicles, providing safe and enjoyable mobility to more people."