72% Localization Ratio in Materials, Parts, and Equipment Structural Improvement
"Security Risks Must Be Addressed When Exporting"
The Korea Display Industry Association held a security seminar for export companies in materials, parts, and equipment (MPE). Although the localization rate has exceeded 70%, the seminar provided practical guidelines to companies suffering from security-related risks overseas.
The association announced on the 23rd that it held the "Display Industry Security Council Export and Security Competitiveness Enhancement Seminar" at EL Tower in Seocho-gu, Seoul. The seminar was organized to establish security strategies led by domestic companies and to strengthen competitiveness in responding to technology leakage. About 60 participants from MPE companies, panel and set companies, and related organizations attended.
The seminar covered topics such as trends in the Chinese display market, actual cases of overseas technology leakage, and an introduction to the display export security guide.
The localization rate of display MPE reached 71.5% last year, indicating strengthened competitiveness in the MPE industry.
Overseas export and expansion companies face potential security risks such as legal disputes and leakage of production process information with relatively limited resources.
After contracts, companies may suffer from legal disputes due to excessive demands for technical data. There is also a constant possibility of knowledge exposure during the production process. When withdrawing from overseas operations, companies may face difficulties in managing technology and the movement of locally hired personnel.
Seminar attendees diagnosed that MPE companies should establish step-by-step security management plans for "contract-expansion-withdrawal" phases when entering overseas markets to prevent technology leakage.
Professor Jang Hang-bae of Chung-Ang University presented response measures for the MPE industry focusing on the detailed contents of the "Display Industry Export Security Guide," which includes categorized cases of security risks that may occur at overseas sites. The guide will be produced in booklet and electronic file formats and distributed later through the association’s website.
Lee Dong-wook, vice chairman of the association, stated, "We will strengthen the security system in cooperation with the government so that MPE companies can thoroughly prepare for the counterpart countries even before expanding overseas."
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