[Report] Cheongwadae, Samsung, and Coupang Also Use This SME's Automatic Doors

Automatic Door Installation Company COAD
Handling All Automatic Door Items Including Speed Doors
Operating Four Days a Week... Pursuing IPO

Lee Dae-hoon, CEO of COAD, is introducing the company's products at the 'InnoBiz PR Day' held on the 23rd at COAD headquarters in Hwaseong-si, Gyeonggi-do.
[Photo by COAD]

Koad, a company specializing in automatic doors located in Hwaseong-si, Gyeonggi Province. Koad is a small and medium-sized enterprise that manufactures almost all types of automatic doors, from commonly seen glass automatic doors to parking lot, logistics warehouse, and factory automatic doors. On the 23rd, we met CEO Lee Dae-hoon at Koad’s headquarters, who said, "There are about 1,000 automatic door companies in Korea, but Koad is the only one that handles the entire range of automatic door models," introducing it as "the reason why we can custom-make optimized automatic doors for any space."

Established in September 2014 and now in its 10th year, Koad offers total solutions for automatic doors. Their products are broadly divided into five categories: speed doors, overhead doors, garage automatic doors, shutters, and glass automatic doors. Speed doors are Koad’s flagship product, first introduced by the company. They allow quick opening and closing of doors when vehicles or people enter and exit industrial sites. CEO Lee said, "Coupang installed our speed door products in their logistics centers, greatly improving the working environment," adding, "Quick door operation increases the efficiency of heating and cooling systems."

Koad has supplied products to major corporations such as Samsung, LG, Coupang, and Hyundai Motor Company, as well as to institutions like the Blue House, Supreme Court, National Police Agency, and local education offices. In the case of the Blue House, during the Park Geun-hye administration, the security office custom-ordered Koad products in preparation for national emergencies. Additionally, Koad supplies products to consumers and small business owners who want personal garages at home, operating in the B2C (business-to-consumer) market.

At the 'Inno-Biz PR Day' event hosted by the Inno-Biz Association, CEO Lee personally demonstrated the durability and functionality of his company’s products. His pride is the 'self-repairing speed door,' made from double-woven protect fabric used in military rubber boats. Vertical zippers are attached to the lower sides of the door to prevent potential damage from external impacts. CEO Lee showed the process where, after lowering the door, a foot impact opens the zipper, absorbing the shock and preventing breakage. He said, "Even if a forklift fork collides, the door does not tear; the zipper opens to prevent accidents," adding, "Since the enforcement of the Serious Accident Punishment Act, many industrial sites have sought our products."

Speed door constructed by Koad. [Photo by Koad]

Overhead door by Koad. [Photo by Koad]

Koad operates branches in eight locations nationwide, including Daejeon, Daegu, and Jeonnam. It also has branches in five overseas countries: Thailand, Japan, Vietnam, Malaysia, and Indonesia. About 30% of last year’s 17.1 billion KRW sales came from overseas. This year, the sales target is 20 billion KRW.

In 2020, Koad established an online platform specializing in automatic doors called 'Jadongmun-ui Gosu' (Master of Automatic Doors). This service connects customers who want to install automatic doors with installation companies nationwide. Typically, when a general consumer wants to install an automatic door, the process involves multiple intermediaries such as interior companies, window companies, and installation companies, which increases costs and lacks price transparency. Koad solves these issues by guaranteeing responsible contracts and after-sales service. About 300 small and medium automatic door installation companies have registered on the platform so far. CEO Lee explained, "We carefully check the construction capabilities of companies and do not accept just anyone," adding, "Through our platform, automatic doors can be installed at one-third the usual price."

Since last year, Koad has been operating a four-day workweek, the first among manufacturing companies based in construction. The five-day workweek is only in effect during the peak demand months from November to February. CEO Lee said, "After operating the four-day workweek for a year, sales doubled and operating profit margin exceeded 20%," adding, "Manufacturing can also adopt a four-day workweek if smart factories are built and management efficiency is achieved." The company also runs a 'family livelihood allowance' system, where if an employee dies, their spouse receives the deceased’s salary until the age of 65. This reflects CEO Lee’s management philosophy that 'salary is a reward for contribution, not just labor.'

Koad is also pursuing an initial public offering (IPO). In 2020, it selected Kiwoom Securities as its lead underwriter and is proceeding with steps to list on KOSDAQ. When the company was founded, CEO Lee gave 53% of the shares to employees free of charge and retained only 47% himself. He said, "I distributed shares so that if I mismanage the company, employees can remove me at any time," adding, "But if things go well, we all share the rewards through IPO and other means."