[Interview] "Taking the First Step Waiting for the Chinese Market to Revive... Starting Joint Research with Chinese Companies"

One Korean Company Participates in China Supply Chain Expo
Interview with CEO Kang Chan-ho: "Market Too Risky to Invest"
"Expecting Rapid Growth in Electric Vehicles... Business Opportunities Exist"

"Considering the situation where we were directly hit by political issues in the past, it is true that China is a market that feels risky to invest in. However, even if it takes time, it will definitely revive, and I think now is the time to take the first step. Won't there be more opportunities next year or the year after?"

On the 29th, at the 1st Supply Chain Expo (CISCE) held at the China International Exhibition Center Sunyi Hall in Beijing, China, there was only one Korean company participating. It was not a famous large corporation like Samsung or Hyundai Motor, but a small and medium-sized enterprise, Easytronics, which visited China to open a path for commercial electric vehicle parts. One-third of this company's sales come from supplying Hyundai Motor, and recently, to seek new opportunities in the rapidly changing electric vehicle market, they set up a booth of just over two pyeong (about 7 square meters) at an unfamiliar exhibition in an unfamiliar Chinese land.

On the 29th, Kang Chan-ho, CEO of Easytronics, was met at the exhibition hall of the 1st China International Supply Chain Expo (CISCE) held at the China International Exhibition Center in Shunyi, Beijing, China. This company was the only Korean firm to open a booth at the Supply Chain Expo. (Photo by Hyunjung Kim)

Kang Chan-ho, CEO of Easytronics, emphasized, "Business should start with trust, but some countries do not follow that," and added, "It is true that we are concerned about sanctions, such as when Korean companies were directly hit during the THAAD (Terminal High Altitude Area Defense) incident in China." Nevertheless, he stressed, "From China's perspective, they will not block foreign companies to the extent of damaging their national image," and "Most importantly, China, as a latecomer compared to Germany and Japan in the automotive industry, is leading the activation and rapid growth in the electric vehicle sector."

Easytronics currently has no corporation, no liaison office, and no fixed business partners in China. The Korean government has not stepped in to support the Chinese organizers either. Kang said, "We have the intention to enter China, export products, and import low-cost parts," and added, "Although the Chinese market is currently stagnant, it is a rapidly developing market due to carbon neutrality and eco-friendly movements, and China is at a good stage for entry as vehicle parts are standardized through economies of scale."

The company targets special commercial electric vehicle parts such as trucks, buses, and machinery vehicles, rather than passenger car parts for which each automaker has established its own production line. Their main products include 11kW slow chargers, 100kW fast chargers, and 5G 1.5kW and 2.3kW rectifiers. CEO Kang said, "We are also expecting to import cost-competitive Chinese parts, apply our developed technology to existing parts, and then re-export them," and revealed, "Although it is not yet at a stage to disclose, we have a joint development project with a local Chinese company related to electric vehicle parts." He added, "Since China is at the center of electric vehicle activation and rapid growth, there will be business opportunities."

The Ejitronics booth inside the exhibition hall at the 1st Supply Chain Expo (CISCE) held on the 29th at the China International Exhibition Center, Shunyi Hall, Beijing, China. Photo by Hyunjung Kim

Regarding concerns about whether foreign companies might be excluded in China, where the electric vehicle parts ecosystem is already fully established, he responded, "That was not the atmosphere," and said, "They consider various portfolios including dual and third vendors."

On the background of deciding to participate amid the recent cooling of relations with China, he said, "Small and medium private companies are currently struggling to survive," and added, "Even if we cannot receive support, we have independently judged and decided on various regulations, restrictions, and opportunities." He further noted, "Both the industry and government in Korea must be aware that manufacturing companies are finding it difficult to survive due to rapidly changing prices, labor costs, and employment environments."