[From the Top Engineer]⑨ Sungjin Kim, Executive Director of Korea & Company: "Tire Manufacturing and Feedback Also by AI... Leading DX"

Overcoming the Physical Limits of Manufacturing through DX
"AI in Motion"... Aiming to Automate Repetitive Tasks within the Year
"We Will Grow by Connecting People and AI"

Editor's NoteSouth Korea's industry is facing a comprehensive crisis. The surge in raw material prices, the reorganization of global supply chains, and the US-China trade conflicts have compounded, worsening the business environment. The key to overcoming this crisis ultimately lies in technology. Technology is the lifeline and the value of existence for companies. This is also why companies are placing greater emphasis on the role of Chief Technology Officers (CTOs). CTOs have established themselves not merely as developers of new technologies but as strategists who analyze changing markets and present the future vision of their companies. Asia Economy met with CTOs of major domestic companies to hear about the core technologies and differentiation strategies that each industry is focusing on. Through the technology strategies of leading companies, we seek ways to enhance the competitiveness of our industries and create future value.

"It used to take three months to design a new tire pattern, but by utilizing generative artificial intelligence (AI), that time has been cut in half. Since we have been making tires, we are not an IT tech company, so we are focusing on internalizing external technologies to enhance our technological capabilities."

Kim Seong-jin, Chief Information Officer (CIO) and Chief Digital Officer (CDO) of Hankook & Company Group, recently emphasized in an interview with Asia Economy that digital transformation (DX) is essential to overcome the physical limitations of manufacturing. This is because communication with consumers and cost reduction in the manufacturing process can also be addressed through DX. When he joined Hankook & Company in 2020, the first task he undertook was to gather scattered data into one place to create a unique platform for Hankook & Company. He particularly evaluated generative AI as a catalyst for the digital transformation of manufacturing.

Kim Sung-jin, Executive Director of Korea & Company, is being interviewed by Asia Economy. Photo by Yoon Dong-joo

Manufacturing with AI... Enhancing Productivity through Automation of Repetitive Tasks

Executive Vice President Kim set this year's catchphrase as 'AI in Motion.' The goal is to automate a significant portion of repetitive tasks within the year. The subsidiary, Hankook Tire & Technology (Hankook Tire), is designing tire patterns using generative AI. This is similar to the recently popular ChatGPT's method of creating images in the style of Studio Ghibli animations. Leading companies in the industry such as Michelin and Continental are also showing interest in AI-based tire pattern design. Executive Vice President Kim said, "An environment has been created where, as long as you have an understanding of technology and imagination, you can get ahead of leading companies."

DX is not limited to tire manufacturing. Using 'ChatHK,' developed based on generative AI like 'ChatGPT,' they analyze and respond to tire performance reviews from customers worldwide. For example, if someone posts on an overseas community, "I tried putting Hankook Tires on a Tesla," they bring that post in and database which quality aspects the person mentioned and what score they gave. Executive Vice President Kim said, "Since tires are a business-to-consumer (B2C) transaction, consumer feedback is very important, but it was difficult to see feedback in real time until now." He added, "Now, using AI, we listen to consumer evaluations without filtering and at almost no cost. Data collection that used to take several months now takes just a week."

With the advent of generative AI, traditional industries like manufacturing have also gained competitiveness. He explained, "In the past, to check whether tire labels were properly attached or if there were assembly issues, equipment costing 200 million won was needed, but nowadays it can be done with a 1 million won camera." He added, "The physical constraints of manufacturing are disappearing."

Kim Sung-jin, Executive Director of Korea & Company, is being interviewed by Asia Economy. Photo by Yoon Dong-joo

"Towards a Hankook & Company that Handles AI Well"

Executive Vice President Kim is accelerating DX largely due to the will of Chairman Cho Hyun-bum of Hankook & Company. In his New Year's address this year, Chairman Cho presented strengthening R&D capabilities, accelerating AI- and data-based DX, and Proactive Season 2 as core tasks, saying, "Let's get closer to the goal of becoming a global high-tech group with greater competitiveness." Chairman Cho's recognition that DX through technologies such as generative AI is so important that it will change not only the way of working but also the workforce structure within 2 to 3 years laid the foundation. The executives were even invited to external instructors for training to try generative AI themselves.

Executive Vice President Kim emphasized that Hankook & Company's DX is not technology for technology's sake. Unlike companies that jumped on the bandwagon just because generative AI appeared, they are not chasing technology blindly.

He said, "First, we must be faithful to business objectives." Ultimately, what matters most is how technology can help the business. He continued, "We need to platformize data to make it accessible and adopt the concept of 'connection.'" He explained, "Connection means bringing organizations and organizations, people and AI into contact through AI technology." The intention is to increase productivity and quality through AI while people focus on high-value tasks such as decision-making.

He also predicted, "AI will not replace people; rather, a small number of people who use AI well will replace the rest." It has become important to develop employees' AI utilization capabilities. He said, "People who handle AI well?and extending this concept, companies and countries that utilize AI well?will easily dominate other businesses. The value polarization between talents equipped with experience, insight, and AI technology and those without will widen, and Hankook & Company will grow by connecting AI and people."