Creative Innovation, Dynamic Korean Machine Tool Industry

2012-2013 Korean Machine Tool Industry

Better Machine Tools, Better World

The Korean machine tool industryﾕs innovation and creativity embraces the human challenge to build a better world as the producer of mother machines, enabling the production of all capital goods like aircraft, automobiles, new energy solutions, etc.

kmti_2013_.indd 1 2013-08-12 6:30:48 kmti_2013_.indd 2 Korea Machine Tool Ind 2013-08-12 6:30:48 Contents

06 Message From The Chairman 08 2012 Scoreboard ·Production · Orders · Imports · Exports 13 2013 Outlook ·Production · Exports ·Imports · Consumption 15 Navigating Major End-User Industries - Automobiles - Shipbuilding - Machinery - Steel - Petrochemicals - IT Industry - Next-Gen Growth Engines 23 About KOMMA 28 Member Companies - Chairman, Vice Chairmen, Auditors, Director Companies - Metal Cutting Machines - Metal Forming Machines - Robots - Parts - Tools 38 Statistics & Beyond

KMTI 2012-2013 (Korean Machine Tool Industry) _ 3

kmti_2013_.indd 3 2013-08-12 6:30:49 Executive Summary

Korea's Machine Tool Orders & Production Korea's Machine Tool Exports & Imports (Unit : ￦Trillion) (Unit : US$ Billion)

1.75 4.33 1.49 3.49 3.50 1.33 1.44 2.71 1.13 1.91

2.55 6.362 6.42 2.30 5.32 1.91 4.83 1.67 3.51 1.21

2008 2009 2010 2011 2012 2008 2009 2010 2011 2012

Orders Imports Production Exports

Message From The Chairman Creative Innovation Blooming New Manufacturing Economy As machine tools are rightly called mother machines, machine tool producers have a significant role to play in helping the global economy escape the current tunnel of hardship, providing the leverage to enhance productivity in every manufacturing sector.

‘12 Korean & Global Machine Tool Industry Korea Joins Big-Four League in Production In 2012, Korea passed Italy to become the world’s fourth largest machine tool producing nation, trailing only China, Japan and Germany.

2012 Scoreboard Registering Record High Exports & Trade Surplus Despite the overall recession at home and abroad, Korea registered record highs in machine tool exports and trade balance, reflecting the success of the nation’s global outreach initiatives. - Production Increases Thin 1.0% to 6.4 Trillion Won - Order Receipts Fall Sharply - Imports Tumble 16.87%, Registering US$1.49 Billion - Exports Surge 10.4% to US$2.55 Billion

2013 Outlook Gradual, Mild Recovery Looms - Production Projected for 5.1% Rise to 6.75 Trillion Won - Near Double-Digit Increase Forecast for Imports at US$1.69 Billion - Exports Expected to Top US$27 Billion with 8.3% Expansion - Consumption Predicted to Rise 5.8% to 5.6 Trillion Won

4 _ KMTI 2012-2013 (Korean Machine Tool Industry)

kmti_2013_.indd 4 2013-08-12 6:30:49 Production Outlook Exports Outlook Imports Outlook Consumption Outlook (Unit : ￦100 Mil) (Unit : US$ Mil.) (Unit : US$ Mil.) (Unit:US$ Mil.)

2,750 67,500 56,063 64,240 2,551 1,690 52,316 1,492

5.1% 8.3% 9.7% 7.2%    

2012 2013 2012 2013 2012 2013 2012 2013

End-User Industries Beyond Constraints, Recovery Picking Up Steam Across the Board - Automobile Exports Expected to Bounce Back with 3.3% Rise - Shipbuilding Creating New Blue-Ocean with Offshore Platforms - Machinery Production Scaled at 454 Trillion Won in 2013 - Steel Sees Demand Increase at Home & Abroad - 2013 Petrochemical Investment Projected at 6.3 Trillion Won - IT Remains Growth Engine for Creative Korea - Convergence Creating New Opportunities in Next-Gen Growth Engines - Highlights of Korean Industrial Policies in 2013

About KOMMA Success Partner for Machine Tool Industry at Home & Abroad Since it was established in 1979, the Korea Machine Tool Manufacturers' Association (KOMMA) has played a pivotal role in the dynamic development of the Korean machine tool industry.

KOMMA Members Your Prospective Business Partners Introducing the more than 182 member companies of KOMMA with a focus on products and contact points to increase your leverage in Korea and at the hub of Asia.

Statistics and More Introducing 17 statistical references and valuable information to fuel your advance into Korea’s manufacturing markets.

SIMTOS 2014 Generator of New Opportunities & SMILE With the goal of being a business angel for exhibitors, buyers and visitors, SIMTOS 2014 organizers are determined to faithfully fulfill the mission of being Your Sales Dept. 2.

KMTI 2012-2013 (Korean Machine Tool Industry) _ 5

kmti_2013_.indd 5 2013-08-12 6:30:49 Message From The Chairman

Creative Innovation Blooming New Manufacturing Economy

It is a pleasure and a privilege for me, as chairman of the Korean Machine Tool Manufacturers’ Association, to have this opportunity to outline the real picture of Korea’s machine tool industry and to present its ever-evolving future direction and vision.

Despite the turn oil created by economic hardships at home and abroad, Korean machine tool exports reached a new record high of US$2.55 billion in 2012 and joined the world’s top-four machine tool producers, trailing only China, Japan and Germany.

At the same time, SIMTOS (Seoul International Manufacturing Technology Show) has been a tremendous success, with the 2012 edition setting milestones such as a 91.7% expansion in exhibition area, 66.2% surge in the number of exhibitors, and 52.7% jump in business contracts and consultations among other records.

En route to these twin achievements, Korean machine tool businesses showcased their deep pool of innovation and technology development expertise along with the can-do spirit that is part of their DNA. Still, with the lingering worldwide recession, the dramatic changes in the global machine tool market structure and environment call for a new approach toward a creative future in response to the emergence of the new manufacturing economy.

As machine tools are rightly called mother machines, machine tool producers have a significant role to play in helping the global economy escape the current tunnel of hardship, providing the leverage to enhance productivity in every manufacturing sector. Furthermore, I would like to underline our efforts, through SIMTOS 2014, to generate new market opportunities with the employment of a very pragmatic program – Matchmaking4U with Buyers (both Korean and foreign) – under the slogan “We are ready to be your Sales Dept. 2.”

Wishing good health and good fortune to all our clients, partners and stakeholders throughout the world, I solicit your continued attention and patronage on our odyssey for creative innovation to realize new dreams and a brighter future in line with the evolution of our industry from the mother of machines to the mother of the manufacturing economy.

Faithfully yours,

Jong-Hyeon Sohn Chairman Korean Machine Tool Manufacturers' Association (KOMMA)

6 _ KMTI 2012-2013 (Korean Machine Tool Industry)

kmti_2013_.indd 6 2013-08-12 6:30:50 ‘12 Korean & Global Machine Tool Industry

Production Exports

6th 4th 5th 5th 5th 5th 5th 7th 7th 7th 7th 7th 7th 7th 6th (US$5.71 billion) 8th 7th 8th (US$2.55 billion) 8th 8th 10th 11th 11th 11th

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

2012 2012 Amount Share Change Amount Rank Country Rank Country Change (%) (Uni t : US$1Mil.) (%) (%) (Unit: US$1Mil.) 1 China 27,540 29.5 -2.6 1 Japan 11,565 0.0 2 Japan 18,253 19.6 -0.4 2 Germany 10,410 10.2 3 Germany 13,623 14.6 1.9 3 Italy 4,434 3.8 4 Korea 5,705 6.1 -0.9 4 Taiwan 4,236 5.9 5 Italy 5,668 6.1 -4.1 5 Switzerland 2,773 -10.0 6 Taiwan 5,430 5.8 5.2 6 China 2,750 13.6 7 U.S.A. 4,983 5.3 6.6 7 Korea 2,551 10.9 8 Switzerland 3,199 3.4 -11.3 8 U.S.A. 2,088 11.0 9 Spain 1,060 1.1 -1.1 9 Spain 983 1.7 10 Austria 1,032 1.1 6.3 10 Belgium 862 -2.1 Others 6,712 7.2 -7.0 Others 5,252 5.5 Total 93,205 100.0 -1.2 Total 47,904 4.6

Imports Consumption

3th 3th 4th 4th 4th (US$1.49 billion) 5th 5th 5th 5th 5th 5th 5th 6th (US$4.65 billion) 6th 6th 6th 6th 6th 6th 7th 7th 10th 8th 8th

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

2012 2012 Amount Amount Change(%) Rank Country Change (%) Rank Country (Unit: US$1Mil.) (Unit: US$1Mil.) (2011/2010) 1 China 13,720 3.6 1 China 38,510 -1.5 2 U.S.A. 5,827 28.7 2 U.S.A. 8,723 19.1 3 Germany 3,187 7.0 3 Japan 7,463 0.6 4 India 1,599 -7.0 4 Germany 6,400 -7.3 5 Korea 1,492 -16.7 5 Korea 4,646 -11.4 6 Brazill 1,436 -12.8 6 India 2,286 -10.6 7 Mexico 1,269 0.0 7 Italy 2,172 -21.4 8 Turkey 1,172 6.5 8 Brazill 1,867 -21.7 9 Russia 1,118 0.0 9 Taiwan 1,844 -7.3 10 France 988 -13.2 10 Mexico 1,361 0.0 Others 8,341 -1.9 Others 10,177 -3.7 Total 40,149 2.8 Total 85,449 -2.5

KMTI 2012-2013 (Korean Machine Tool Industry) _ 7

kmti_2013_.indd 7 2013-08-12 6:30:50 2012 Scoreboard

Record-High Export & Trade Surplus

Despite the overall recession at home and abroad, Korea registered record highs in machine tool exports and trade balance, reflecting the success of the nation’s global outreach initiatives.

Production

Production Increases Thin 1.0% to 6.4 Trillion Won

The Korean production of machine tools in 2012 grew a meager 1.0% year-on-year to about 6.42 trillion won due to the combination of domestic and overseas economic slowdowns, following the European financial crisis and decline in facility investment related to new vehicles.

Production Results of Machine Tools by Year (2000~2012) (Unit: 100 mil. won) 70,000

63,600 64,240

60,000 53,278

50,000 48,310

39,271 40,000

28,267 30,000

19,421 149.612 20,000

10,000

0 2000 2002 2004 2006 2008 2010 2011 2012

8 _ KMTI 2012-2013 (Korean Machine Tool Industry)

kmti_2013_.indd 8 2013-08-12 6:30:50 Regarding domestic demand in 2012, as economic instability factors impacted domestic manufacturing industries and the number of new vehicle model introductions declined significantly compared with the preceding year, facility investment by automotive manufacturers and business sentiment weakened remarkably. In contrast, exports grew in 2012, owing to good performance of manufacturing businesses in the United States and increases in exports to newly emerging countries like India, Turkey and Southeast Asia. The export growth contributed to maintaining the 201l level of domestic machine tool production.

Production Status of Machine Tools by Item (Unit: 100 mil. won, year-on-year changes %) 2010 2011 2012 Category Amount Change Amount Change Amount Change NCLathes 10,840 60.1 14,661 35.3 13,404 -8.6 Machining Centers 7,991 71.7 8,228 3 11,363 38.1 Presses 3,281 37.2 4,361 32.9 3,821 -12.4 * Total (3 Items) 22,112 60.1 27,250 23.2 28,588 4.9 Boring M/C (incl. NC) 915 15.5 2,123 132 1,342 -36.8 Grinding M/C (incl. NC) 341 115.8 429 25.6 465 8.4 Milling M/C (incl. NC) 657 -18.2 535 -18.5 646 20.7 General Lathes 269 25.7 248 -7.6 329 32.7

Source: Korea Machine Tool Manufacturers' Association (KOMMA) (based on member company data)

Status of Demand for Machine Tools by Industry Type

Precision Machinery 2.2% Others Shipbuilding & Aerospace 4.6% 12.5% Automobiles

Electrical, Electronics & IT 7.7% Automobiles GeneralMachinery 38.2% Metal Working

Ferrous & Non-Ferrous Metals

Electrical, Electronics & IT

Shipbuilding & Aerospace Ferrous & Non-Ferrous Metals 8.5% Metal Working Precision Machinery GeneralMachinery 10.3% Others 15.9%

(Unit: 100 mil. won, year-on-year changes %) 2010 2011 2012 Category Amount Ratio (%) Amount Ratio (%) Amount y-o-y Ratio (%) Automobiles 7,413 35.6% 8,504 35.5% 6,989 -17.8% 38.2% General Machinery 3,363 16.2% 3,803 15.9% 2,916 -23.3% 15.9% Metal Products 2,132 10.2% 2,974 12.4% 1,893 -36.3% 10.3% Ferrous& Non-Ferrous Metals 1,342 6.4% 2,052 8.6% 1,547 -24.6% 8.5% Electrical, Electronics & IT 3,641 17.5% 2,215 9.2% 1,409 -36.4% 7.7% Shipbuilding & Aerospace 472 2.3% 1,279 5.3% 844 -34.0% 4.6% Precision Machinery 646 3.1% 831 3.5% 411 -50.4% 2.2% Others 1,803 8.7% 2,289 9.6% 2,287 0.0% 12.5%

Source: Korea Machine Tool Manufacturers' Association (KOMMA) (based on member company data)

KMTI 2012-2013 (Korean Machine Tool Industry) _ 9

kmti_2013_.indd 9 2013-08-12 6:30:51 2012 Scoreboard

Orders Order Receipt Down 19% Order Receipt

Domestic receipt of orders for machine tools by Order Recelpt Total Export Demestic Demand KOMMA member companies recorded about 3.50 6,000 trillion won in 2012, down 19% year-on-year, 5,000 reporting less than 4 trillion won for the first time 4,000 in two years. 3,000 2,700

Domestic demand orders in 2012 fell 27.8% year- 2,400 on-year to about 1.73 trillion won and their ratio in 2,100

total orders also declined to 49.3% from 50% a 1,800

year earlier. 1,500

1,200

Also by month, domestic demand orders fell for 900

the 15th consecutive month since October 2011 600 due to a contraction of domestic manufacturing 300 facility investment and base effects from the 11.11 12 12.1 2 3 4 5 9 7 8 9 10 11 12 previous year's results. (Unit: \100 Mil. %) In particular, domestic orders in December 2012 Division Total m-o-m Share y-o-y Share posted 99.9 billion won, less than the 100 billion- (2012.12) (2012.1~12) won level, the most sluggish performance since Order Receipt 2,099 -24.8 100.0 35,041 -19.0 100.0 August 2009. Domestic 999 -14.2 47.6 17,282 -27.8 49.3 Export 1,100 -32.4 52.4 17,759 -8.1 50.7 Export orders in 2012 decreased 8.1% year-on- Source: KOMMA year to about 1.78 trillion won and their ratio in total orders accounted for 50.7%. Owing to orders from the United States and China and project-type Order Receipt Change by Major Item overseas orders won by some companies, (Unit : \100 Mil.) however, the rate of decline stayed at a single digit 2,400 level. 2,200 NC Lathes Machining Centers 2,000 Preses By item, orders in 2012 decreased year-on-year 1,800 for NC cutting machines (2.85 trillion won, -22.2%) 1,600 and general-purpose cutting machines (169 1,400 1,200 billion. won, -10.9%), but a slight increase was 1,000 witnessed for forming machines (483.5 bilion won, 800 2.5%). 600 400 Among the NC cutting machines, orders fell for 200 0 both NC lathes (1.13 trillion won, -33.2%) and 11.11 12 12.1 2 3 4 5 9 7 8 9 10 11 12 machining centers (1.29 trillion won, -5.3%). Souuce : Korea Customs Service (KCS) Orders for NC lathes, in particular, decreased remarkably due to a slowdown in both overseas orders and domestic demand.

10 _ KMTI 2012-2013 (Korean Machine Tool Industry)

kmti_2013_.indd 10 2013-08-12 6:30:51 Imports Imports Drop 14% to US$1.54 Billion

Machine tool imports in 2012 decreased 14% year-on-year to Korea's Machine Tool Imports by Year US$1.54 billion amid a declining trend in domestic facility (Unit : US$ Billion)

investment and the strength of the Japanese yen currency. 27.4% 17.9% 4.1% 16.7% Due to a domestic automobile-related facility investment -1.3% -15.1% -14.0% slowdown and the effect of poor economic indicators on domestic manufacturers as well as the after-effects of the 1.75 1.49 1.35 1.33 1.44 Lehman Brothers' crisis, imports have converted to a declining 1.29 1.13 trend since 2009. By region, imports from Asia, Europe and North America all declined. Imports from Japan, Korea's largest supplier, declined the most due to the effect of the 2006 2007 2008 2009 2010 2011 2012 strong yen currency. Change Import

By item, imports of all machine tools, including grinding machines (-20.8%), NC lathes and presses, declined year-on-year. The import ratio of major import items like NC lathes, machining centers, presses and NC grinding machines from Japan accounted for over 50%. In addition, imports of boring machines (inclusive of NC) and imports of milling machines (inclusive of NC) and general lathes also fell year-on-year.

Import Status of Machine Tools by Item (Unit : US$1,000) Category 2008 2009 2010 2011 2012 Change(%) NC Lathes 144,627 137,450 160,669 154,707 104,982 -32.1 Machining Centers 256,183 133,485 258,988 327,233 247,578 -24.3 Presses 68,866 75,493 86,893 116,673 108,127 -7.3 * Total (3 Items) 469,676 346,428 506,550 598,613 460,687 -23.0 Boring M/C (incl. NC) 19,873 27,497 17,888 28,615 29,978 4.8 Grinding M/C (incl. NC) 148,497 155,277 190,796 229,110 179,818 -21.5 Milling M/C (incl. NC) 46,012 47,840 48,080 55,008 45,846 -16.7 General Lathes 63,228 37,900 33,877 46,276 31,984 -30.9

Source: Korea Customs Service (KCS)

By region, over double-digit year-on-year declines were witnessed in all the imports from Asia (US$991 million, -17.7%), Europe (US$446 million, -13.7%), North America (US$52 million, -18.1%). In Asia, despite over double-digit declines in the imports from Japan (US$736 million, -23.8%) and Taiwan (US$92.6 million, -11.3%), the nation's imports from China (US$95.7 million, 25.0%). In Europe, imports dropped from Germany (US$195 million, -21.5%) and Switzerland (US$111 million, -6.6%), but increased from Italy (US$84 million, 19.4%).

Import Status of Machine Tools from Major Countries (2012) (Unit : US$ 1 mil.) Category Japan Germany Switzerland China Taiwan Total (incl. others) Total 764 183 117 100 99 1,492 countries (1,263) Ratio (%) 49.6 11.9 7.6 6.5 6.4 100 (2011) (53.9) (13.9%) (6.6%) (4.3%) (5.8%) 1,791 (2010) (51.1%) (16.9%) (6.3%) (3.9%) (6.2%) 1,444 Y-o-Y Change (%) -20.9% -26.5% -1.7% 29.9% -4.8% -14.0%

Source: Korea Customs Service (KCS)

KMTI 2012-2013 (Korean Machine Tool Industry) _ 11

kmti_2013_.indd 11 2013-08-12 6:30:51 2012 Scoreboard

Exports Exports Surge 10.8% to US$2.55 Billion

Exports in 2012 hit a historic high of US$2.55 billion, up 10.8% year-on-year, despite additional unstable factors in the global economy caused by the European financial crisis. Notwithstanding export declines to Europe due to the persistent eurozone financial crisis from beginning of the year, exports set a historic high record for the second consecutive year, thanks to machine tool facility investment growth by U.S. manufacturing businesses and maintenance of the previous year's level for exports of machine tools to China.

By year, exports realized over double-digit growth year-on-year for the third consecutive year since 2009, registering more than US$2 million for two straight years. By quarter, exports continued year-on-year growth for nine quarters until the second quarter of 2012, but declined since the third quarter.

In terms of items, exports in 2012 increased year-on-year for NC cutting machines (US$1.63 billion, 17.1%) and general-purpose cutting machines (US$175 million, 8.6%), but decreased for forming machines (US$742 million, -0.3%). Regarding the export of NC lathes (US$772 million, 11.6%), exports to the United States (US$272 million) accounted for 35.2% of the total and for machining centers (US$662 million, 37.3%), China (US$294 million) posted the highest ratio of 48.5%.

Export Status of Machine Tools by Item (Uni t: US$1,000) Category 2008 2009 2010 2011 2012 Change(%) NC Lathes 692,732 310,022 364,111 691,695 772,010 11.6 Machining Centers 350,581 215,329 339,282 441,653 606,232 37.3 Presses 269,484 172,349 243,583 415,140 373,560 -10.0 * Total (3 Items) 1,312,797 697,700 946,976 1,548,488 1,751,802 13.1 Boring M/C (incl. NC) 64,735 55,657 90,926 99,493 83,847 -15.7 Grinding M/C (incl. NC) 43,724 67,917 67,930 38,882 51,434 32.3 Milling M/C (incl. NC) 37,285 54,520 48,125 30,851 31,214 1.2 General Lathes 18,792 18,167 16,113 24,490 16,128 -34.1

Source: Korea Customs Service (KCS)

By region, over double-digit growth rates were achieved in exports to Asia (US$1.3 billion, 10.8%) and North America (US$494 million, 40.9%). However, exports declined to Europe (US$590 million, -7.0%) and Latin America (US$119 million, -22.4%).

In Asia, exports to China stayed at the previous year's level (US$738 million, 1.1%), but exports to Southeast Asia's newly emerging markets booked comparatively higher growth rates - India (US$204mil., 21,8%), Thailand (US$82.6 million, 43.5%), Vietnam (US$82.4 million, 159.5%) and Indonesia (US$54.8 million, 111.1%).

In Europe, exports fell year-on-year to Germany (US$127 million, -28.5%), Italy (US$72 million, -16.3%) and Russia (US$33.7 million, -8.4%), but comparatively significant growth rates were posted for exports to the U.K. (US$66.5 million, 24.9%) and newly emerging markets in Eastern Europe, including Turkey (US$97.2 million, 82.0%).

12 _ KMTI 2012-2013 (Korean Machine Tool Industry)

kmti_2013_.indd 12 2013-08-12 6:30:51 2013 Outlook

Mild but Steady Recovery Looming

Production.. 5.1% Rise Seen to 6.75 Trillion Won Owing to domestic facility investment expansion and increased exports to major markets, including the United States and China, as well as emerging markets, production in 2013 is projected at 6.75 trillion won, up 5.1% from 2012.

Domestic facility investment expansion, expected to reach 5.3% in 2013, economic stimulus effects following the launch of new governments in China, USA, etc. and growth in emerging markets, including India, Turkey and Brazil, are factors projected to contribute to the growth of Korea's machine tool exports and production.

Facility investment, although external uncertainties are limiting improvement in investment sentiment, is expected to increase 5.3% from 0% growth in 2012, implying a 'low in the 1st half and high in the 2nd half' growth phenomenon at 2.2% and 10.8%, respectively.

By business type, while facility investment continues to expand in non-IT sectors like automobiles and machinery, mobile equipment-related facility investment may increase again, so machine tool demand is expected to pick up in 2013.

In contrast, since a low 3% level of domestic economic growth is projected for 2013, coupled with weaker domestic demand for development of new vehicles, the machine tool industry is expected to register only single-digit growth.

According to a questionnaire survey regarding the 2013 business outlook conducted by KOMMA in December last year on a total 31 member companies, most of the respondents established sales growth targets at about 9.1% (-2.8% in 1st half and 24.8% in 2nd half). Among them, manufacturers of complete machines set sales growth goals at about 8.8% (-0.6% in 1st half and 24.3% in 2nd half).

KMTI 2012-2013 (Korean Machine Tool Industry) _ 13

kmti_2013_.indd 13 2013-08-12 6:30:52 2013 Outlook

Exports.. Seen to top US$2.75 Billion With 8.3% Rise Machine tool exports in 2013 are forecasted to realize US$2.75 billion, up 8.3% year-on-year, owing to continuous growth of exports to the nation's largest export markets, China and the USA, and through reinforcement of marketing strategies for emerging markets, including BRICs and Southeast Asia.

However, fierce competition with major exporters, such as Japan, Germany and Taiwan, and rapid growth of Chinese companies combined with weakening of export competitiveness caused by unfavorable foreign exchange rates and low global economic growth are likely to serve as factors that limit export expansion.

Imports.. Near Double-Digit Increase Expected Machine tool imports in 2013 are expected to increase 9.7% year-on-year to US$1.69 billion due to the base effect of import results in 2012, facility investment growth, foreign exchange rate appreciation and other factors.

Affected by low domestic economic growth and limited demand for development of new vehicles, significant import growth is unlikely. However, imports of Japanese machine tools may increase due to mitigation of the strong yen currency.

Under such conditions, overseas companies in Germany, Switzerland and Italy are expected to utilize the Korea-EU FTA more actively with a focus on comparatively high-end products and process-intensive-type models, including complex and automation-related machine tools.

Consumption.. Projected to Rise 7.2% to 5.6 Trillion Won As production, exports and imports are all projected to post single-digit growth, machine tool consumption in 2013 is expected to increase 7.2% year-on-year to about 5.6 trillion won. Although consumption will grow for the first time in two years, the rate is likely to be in the single digits.

Outlook of 2013 Domestic Machine Tool Market Year Production (100 mil. won) Exports(US$1 mil.) Imports(US$1 mil.) Consumption(100 mil. won) 67,500 (5.1%) 2,750 (5.1%) 1,690 (5.1%) 56,063 (7.2%) 2013 p (6,256) (28,524) (17,294) (5,196) 2012 p 64,240 (0.8%) 2,551 (10.9%) 1,492 (-16.7% ) 52,316 (-9.9%) 2011 63,753 (19.7%) 2,301 (37.2%) 1,791 (24.1%) 58,096 (14.9%)

Source: Korea Machine Tool Manufacturers' Association (KOMMA) Note: Based on the exchange rate 1,079 won/U.S. dollar in 2013.

14 _ KMTI 2012-2013 (Korean Machine Tool Industry)

kmti_2013_.indd 14 2013-08-12 6:30:52 Navigating Major End-User Industries

Powered by Dynamic Growth of End-User Industries Growing Machine Tool Demand in Korean Market

Automobiles : Korea's Automobile Sales Down at Home; Up Abroad in '12

Shipbuilding : Creating Blue Ocean With Offshore Platforms

Machinery : Production Scaled at 454 Trillion Won in 2013

Steel : '12 Exports Up 4.6%; Domestic Demand Seen to Rise in '13

Petrochemicals : Investment Projected at 6.3 Trillion Won in 2013

IT Industry : Engine for Korea's New Economic Take-off

Next-Gen Growth Engines :17 New Growth Engines in 3 Fields

kmti_2013_.indd 15 2013-08-12 6:30:54 Navigating Major End-User Industries

Automobiles

Korea's Automobile Sales Down at Home; Up Abroad in '12

Sale of Korean automakers in 2012 slightly Korea Automobile Production & Exports decreased in the domestic market as a result (Unit : 1,000 Car) 4,656 4,272 4,458 of reduced production due to a shrinkage of 4,086 3,699 3,840 3,827 consumption sentiment and delayed 3,469 3,513 settlement of wage and CBA (Collective 3,152 3,170 2,847 2,772 2,586 2,648 2,684 Bargaining Agreement) negotiations. 2,380 2,149 In contrast, exports increased slightly, recording 3,169,689 units in 2012 compared with 3,51,708 in 2011.

This year, domestic automobile demand is 2004 2005 2006 2007 2008 2009 2010 2011 2012 seen to remain bearish, staying in the (Unit : Cars, % over the preceding year) neighborhood of 1.4 million units, while 2010 2011 2012 exports are expected to rise to 3.3 million Change Change Change units, a 3.1% increase over last year. Production 4,271,741 21.6 4,657,094 9.0 4,558,160 -2.1 Exports 2,772,107 29.0 3,151,708 13.7 3,165,689 0.4 According to the 'Automobile Industry Trends Amount 354.1 39.4 453.1 28.0 471.8 4.1 in 2012' announced on January 10 by the (US$100 Mil.) Ministry of Trade, Industry & Energy (MOTIE), Domestic Demand 1,555,988 6.9 1,579,674 1.5 1,541,715 -2.4 automobile production and domestic demand Domestic 1,465,426 5.1 1,474,637 0.6 1,410,857 -4.3 totaled 4,558,160 units and 1,541,715 units, Imported 90.562 48.5 105.037 16.0 130.858 24.6 respectively, down 2.1% and 2.4% year-on- Source : Korea Automobile Manufacturers Association (KAMA), Korea Automobile Importers & Distributors ociation (KAIDA) year.

The ministry analyzed that domestic demand slowdown and occurrence of partial Korea's Major Automobile Companies strikes caused by unrest in labor-management relationships had affected a delay in Hyundai Motor Company supply and led to the production decrease in 2012. (http://worldwide.hyundai.com) KIA Motors Corporation In fact, production in the 3rd quarter of 2012 fell to 935,520 units, down 13.9% from (www.kiamotors.com) 1,205,440 units in the 2nd quarter, serving as a key factor in the annual total GM Korea Company production contraction. Domestic sales were converted into a declining trend in four (www.gm-korea.co.kr) years since 2008 due to consumption sentiment shrinkage following the high oil Renault Samsung Motors (www.renaultsamsungm.com) prices and household debt increase amid domestic economic depression. Ssangyong Motor Company (www.smotor.com/en) Despite export decreases to certain regions, including the EU, however, however, exports increased 0.4% to 3,165,689 units centering on the United States and emerging countries and maintained the previous year's level. Exports to the U.S. market, notwithstanding the fiscal cliff threat in the country, increased 18.4% owing to a steady recovery of demand for automobiles and enhanced quality competitiveness of Korean cars.

In December last year, meanwhile, production and exports of the Korean automobile industry decreased year-on-year, while domestic sales increased. Exports fell 10.3% to 270,336 units due to a decrease in the supply volume responding to the volume for domestic demand, etc.

16 _ KMTI 2012-2013 (Korean Machine Tool Industry)

kmti_2013_.indd 16 2013-08-12 6:30:54 Shipbuilding

Creating Blue Ocean With Offshore Platforms

Riding the wave of offshore supremacy, the order volume secured by Korean New Orders in 2012

shipbuilders in 2012 reached about US$30 billion, according to Clarkson's data. Others Europe 8.5% Korean shipyards reconfirmed their global competitiveness particularly in the fields of 9.4% offshore plants and high value-added ships by winning 73% of the world's LNG carrier Japan Korea 13.6% 35.2% orders (24 ships, about US$4.9 billion) and 67% of drillship orders (26 ships, about US$9.3 billion). China 33.3% Among the two units each of LNG-FPSO and FPSO (about US$770 million/unit) ordered throughout the world in 2012, Korean shipbuilders clinched one of each and Completions in 2012 also won all four units of LNG-FSRUs (about US$1.2 billion) ordered last year. Others Europe 5.7% 5.3% The market scale of the global offshore equipment industry exceeded US$150 billion in 2012 and is projected to continue strong annual average growth of 7% for the next Japan Korea 20 years. 17.9% 30.0%

China This year, Korea’s enthusiasm for the offshore sector is expected to heat up even 41.1% further as major shipyards, including Hyundai Heavy Industries (HHI), Samsung Heavy Industries (SHI) and Daewoo Shipbuilding & Marine Engineering (DSME), have established a combined order-securing target of US$58.8 billion in which the offshore Orderbooks in 2012

sector has taken the lion’s share. Others Europe 10.1% 6.4% Under this changing industrial landscape, domestic marine equipment companies are Japan Korea turning increasingly to production of equipment and materials for offshore plants. A 16.52% 31.5% survey conducted by the Leading Industry Development Support Corps for Southeastern Economic Region in June last year on 1,000 marine equipment China companies based in the region found that about 300 companies (30%) were 35.5% manufacturing and supplying single-product-type or module-type offshore plant Source: World Shipyard Monitor, Clarkson equipment and materials, although the scales differed. Note: Based on CGT

Korea's Major Shipbuilding Companies Hyundai Heavy Industries Co., Ltd. (http://english.hhi.co.kr)

Samsung Heavy Industries Co., Ltd. (www.shi.samsung.co.kr/eng)

Daewoo Shipbuilding & Marine Engineering Co., Ltd. (www.dsme.co.kr)

STX Offshore & Shipbuilding Co., Ltd. (www.stxship.co.kr)

SPP Shipbuilding Co., Ltd. (http://eng.sppship.co.kr)

KMTI 2012-2013 (Korean Machine Tool Industry) _ 17

kmti_2013_.indd 17 2013-08-12 6:30:57 Navigating Major End-User Industries

Machinery

Production Scaled at 454 Trillion Won in 2013

Korean production in five major machinery sectors, i.e, General Machinery Production general machinery, precision machinery, electric machinery, (Unit : \ Billion) 106.1 fabricated metalwork and transportation machinery, except 102.5 shipbuilding, is expected to reach 454 trillion won in 2013, up 90.7 77.2 73.8 5.1% year-on-year, according to the Korea Association of 68.4 63.2 54.8 58.2 Machinery Industry (KOAMI). 44.8

KOAMI also projected exports at US$194.6 billion (up 8.9%) and imports at US$104.7 billion (up 9.0%) for 2013, meaning that the nation would achieve a trade surplus of US$89.9 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 billion. Production

In its '2012 Machinery Industry Trends and Prospects for 2013' released on Dec. 28 last year, the association estimated that in 2012, general machinery production, exports, imports and trade surplus would post 112.9 trillion won, US$47.6 billion, US$38.3 billion and US$9.3 billion, respectively.

The association forecast that in 2013, export profitability may worsen due to sharp declines in the won-U.S. dollar exchange rate, etc. and that domestic production would shrink.

In the second half of the year, however, the industry is projected to recover slightly thanks to the Chinese government's economic stimulus policy and recovery of U.S. housing and construction investments.

In 2013, production of machine tools is expected to brisk, while production of construction & mining machinery, molds and heavy electrical machinery are projected to maintain 2012 levels. Exports of machine tools, molds and heavy electrical machinery are likely to post good performances. Meanwhile, business conditions for textile machinery and bearings are feared to worsen in 2013.

Korean Machinery Industry Trends & Outlook 2012 2013 2011 1-6 7-12 whole Yr 1-6 7-12 whole Yr Bil. 415,800 209.556 222,324 431,324 221,570 232,123 453,693 Production Change 7.6 2.4 5.2 3.9 5.7 4.4 5.1 US$ Mil. 164,857 88.061 90,644 178,705 92,498 102,089 194,587 Exports Machinery Change 25.2 12.7 4.5 8.4 5.0 12.6 8.9 Industry US$ Mil. 96,191 48.864 47,178 96,042 50,872 53,857 104,729 Imports Change 9.8 4.8 -4.9 -0.2 4.1 14.2 9.0 US$ Mil. 68,667 39.198 43,465 82,663 41,627 48,232 89,858 Balance Change 24,642 7,659 6,337 13,996 2,429 4,766 7,195 Bil. 102,530 53,185 52,955 106,140 55,311 57,622 112,933 Production Change 11.1 4.8 2.3 3.5 4.0 8.8 6.4 US$ Mil. 43.164 22,375 21,350 43,725 23,464 24,152 47,616 Exports General Change 25.5 4.2 -1.5 1.3 4.9 13.1 8.9 Machinery US$ Mil. 36,049 18,383 16,981 35,064 18.552 419,726 38,278 Imports Change 3.8 4.1 -9.3 -2.7 0.9 18.3 9.2 US$ Mil. 7,115 3,992 4,669 8,661 4,912 4,427 9,339 Balance Change 7,443 17.5 1,371 1,546 920 -242 678

18 _ KMTI 2012-2013 (Korean Machine Tool Industry)

kmti_2013_.indd 18 2013-08-12 6:30:57 Steel

'12 Exports Up 4.6%; Domestic Demand Seen to Rise in '13

In 2012, steel production stayed at the previous year's level due to stagnation of Korea's Major Steel Companies domestic demand following the economic recession. POSCO (www.posco.co.kr) The Korea Iron & Steel Association (KOSA) said that the domestic production of Hyundai Steel Co., Ltd. steel products recorded 72.91 million tons in 2012, a mere 0.9% year-on-year (www.hyundai-steel.com) growth. Crude steel production also stood at 69.40 million tons, up 1.3%. Dongbu Steel Co., Ltd. (www.edongbusteel.com) Exports of steel products in 2012 increased 4.6% year-on-year to 34.30 million tons Dongkuk Steel Co., Ltd. owing to expanded demand in the United States, ASEAN and the Middle East. In (www.dongkuk.co.kr) contrast, imports decreased 10.2% to 20.76 million tons due to a slowdown of domestic demand and excess supply in the domestic market.

KOSA projected crude steel production at 71.21 million tons (up 2.6%) and steel goods production at 74.06 million tons (up 1.6%).

Petrochemicals

Investment Projected at 6.3 Trillion Won in 2013

The Korean petrochemical industry's investment and exports in 2013 are likely to increase slightly from 2012 - investment to 6.5 trillion won from 6.3 trillion won and exports to US$46.6 billion from US$45.8 billion.

Chinese demand for Korean petrochemical products has led the growth of related enterprises. However, the industry may find it hard to sustain quantitative growth, which has depended on the growth of the Chinese market, in the future and market conditions are not stable either due to rapid expansion of facilities for non-petroleum base materials. Therefore, there is a high possibility that long-term and average profitabilities may decline.

China's per-capita consumption of general purpose plastics is 39kgs, exceeding the world's average of 26kgs by 50%. China's per-capita GDP had continued rapid growth until reaching he US$3,000 level, but after crossing US$4,000, the rate of consumption growth of plastics vs. economic growth slowed remarkably, so consumption is expected to slow continuously in the future. Meanwhile, the Korea Petrochemical Industry Association (KPIA) revealed that in 2013, the industry will see investment of 6.5 trillion won, up 200 billion won from 2012, and achieve US$46.6 billion in exports.

KMTI 2012-2013 (Korean Machine Tool Industry) _ 19

kmti_2013_.indd 19 2013-08-12 6:30:57 Navigating Major End-User Industries

IT Industry

Engine for Korea's New Economic Take-off

Korea's Internet economy accounted for 7.3% of the nation's GDP in 2012, Korea's Leading Global Positions in the IT Arena providing a growth engine for the robust Korean economy. During the first two Topped 100% in high-speed Wireless Internet months of 2012, the IT industry registered a US$12.46 billion trade surplus. penetration rate for the first time among 34 The figure represented five times the nation's total trade surplus during the OECD nations as of June, 20 in 2012 same period. As of the end of 2012, Korea ranked first in the UN's e-government appraisal Ranked first in the UN's e-government appraisal list list, dominating global IT markets. Illustratively, Korean companies achieved Global Market Share world-first ranking in mobile and smart phones for the sixth consecutive - Smartphones: 35.3% (as of the end of 2012) quarter (2Q '11 ~ 3Q '12). - All kinds of TVs: 42.92% Korea has a global market share of over 60% in the DRAM sector and also (as of the end of 2012) over a 45% share in NAN flash. - DRAM semiconductors: 65% This year, Korea is moving to accelerate the development of new IT-related (as of April 30, 2012) - Large-size LCD panels: 49.8% sectors with the cultivation of the SW industry, spread of IT convergence, (as of the end of 201) development of 10 core IT technologies, nurturing of creative high-quality manpower and regionally specialized IT industries. Moreover, Korea plans to invest further with a focus on 10 future-leading-type Korea's Major Electronic & IT Companies IT core technology tasks - next-generation devices, big data & artificial Samsung Electronics Co., Ltd. intelligence, hybrid storage, core IT materials, wired & wireless integrated (www.samsung.com/us) network, terahertz & quantum information communication, unmanned LG Electronics Co., Ltd. platform, bio sensor, life-care robot and power semiconductors. (www.lg.com)

The nation also plans to support the cultivation of specialized and KT Corporation differentiated professional manpower and expand support significantly for the (www.kt.com/eng)

IT industry, considering regional characteristics. SK Telecom Co., Ltd Of particular note, the government said it would strengthen IT core capabilities (www.sktelecom.com/eng) further through new projects, such as support for Giga Korea, SW policy SK Hynix Inc. research and establishment of an IT startup forum. (www.skhynix.com/en) The government plans to support 10.3 billion won this year alone for Giga Korea, an R&D project to build giga-class wireless environment by 2020, while investing a total of 550.1 billion won until 2020. It also plans to expand SW policy research functions and strengthen SE monitoring businesses, support the technology commercialization of SMEs and mid-tier enterprises and enhance regional SW industries. In addition, it intends to dedicate budget to the activation of youth start-ups and creation of an IT venture growth ecosystem, designation of new collegiate IT research centers, support for the growth of domestic Wibro-related SMEs and mid-tier enterprises and establishment of e-document distribution centers. To prepare a foothold for Korea's takeoff toward a world-leading IT country, it intends to invest 24.8 billion won in newly promoting R&D in 10 IT core technology fields, including smart equipment, source technologies for IT core materials and big data & artificial-intelligence SW technologies.

2013 2012 March First Three Months March First Three Months All industries $47.5 billion (0.4%) $135.54 billion (0.5%) $47.33 billion (-1.5%) $134.85 billion (2.9%) Exports IT industry $13.76 billion (10.1%) $38.71 billion (9.4%) $12.5 billion (-7.3%) $35.39 billion (-5.5%) All industries $44.14 billion (-2.0%) $129.66 billion (-3.0%) $45.05 billion (-1.1%) $133.67 billion (7.8%) Imports IT industry $6.74 billion (2.0%) $19.24 billion (0.7%) $6.61 billion (-8.5%) $19.09 billion (-4.8%) All industries $3.36 billion $5.88 billion $2.28 Billion $1.18 billion Trade balance IT industry $7.01 billion $19.47 billion $5.89 billion $16.3 billion

- Figures for the year 2013 are tentative. - Year-on-year growth rates shown in parentheses

20 _ KMTI 2012-2013 (Korean Machine Tool Industry)

kmti_2013_.indd 20 2013-08-12 6:30:58 17 New Growth Engines in 3 Fields

Field New Growth Engine Major Content

1. New & Renewable Energy Solar Cell, Fuel Cell, Marine Bio, Marine Energy, Waste Bio, Clean Coal Energy

2. Carbon Reduction Energy CO2 Capture & Storage, Nuclear Power Plant, Small Size Reactors

Smart Drinking Water Network, Eco-Friendly Alternative Water, Sustainable Water 3. Advanced Water Treatment Green Tech Environment Industry 4. LED Application Eco LED, LED Smart Module, LED Emotional Wellbeing Lighting

5. Green Transportation System Green Car, Wise Ship, High-Tech Railroad

6. High-Tech Green City U-City, ITS, GLS, Low-Energy Eco-Frendly Houses

7. Broadcasting & Next-Generation Convergence, Next-Generation Wireless Telecommunications Communications, Real-Feel DTVBroadcasting, Next-Generation IPTV Converged Industry

Intelligent Green Car, Digital Ship, Welfare Converged Platform, Next-Generation Sense 8. IT Convergence System Network, System Semiconductor, Next-Generation Display High-Tech Life-Care Robot, Clean Production-Use High-Tech Manufacturing Robot System, Edutainment Concergence 9. Robot Application Industry Robot, Sustainable Social Safety Robot System, High Value-Added Medical Service Robot

10. New Materials & Nano Ultra Lightweight Magnesium Material, lonic Liquid Material. Nano-Convergence Carbon Convergence Material, Functional Nano Film, Nano-Convergence Bio Machine

11. Bio Paharmaceuticals & Bio Medicine, Bio Resources/New Materials/Organs, Biomass-Derived Bio Chemicals, Medical Medical Equipment Bio Diagnosis System, Diagnostic Imaging Device, Elderly-Friendly Medical Equipment

12. High Value-Added Food Functional Food, Ubiquitous Food System, Eco-Friendly Safety Food, Wellbeing Traditional Food Industry

13. Global Health Care U-Health, Expanded Inducement of Foreign Patients

14. Global Educational Service U-learning, Inducement, of Excellent Foreign Educational Institutions and Students

High Value Added Activation of Carbon Emissions Trading Market, Creation of Green Finance Infrastructures, Service Industry 15. Green Finance Green Fund

Game, Next-Gen New Media, Virual Reality Content, Creation-Perfrmance-Exhibition 16. Content & Software Convergence Content, Open Source Software, Intellient Interface, Embedded Software, Social Safety System, Next-Gen App

Creation of MICE (Meeting, Incentive, Conference, Exhibition) Complex, Eco-System, 17. MICE and Tourism Performance & Shipping Linked Convergence Tourism

KMTI 2012-2013 (Korean Machine Tool Industry) _ 21

kmti_2013_.indd 21 2013-08-12 6:30:58 Navigating Major End-User Industries

Highlights of Korean Industrial Policies in 2013

Nexus of Convergence, Creativity & Connectively

In pursuit of blossoming a Creative Economy, the Ministry of Trade, Industry & Energy (MOTIE) has unveiled an industrial policy package focusing on convergence, creativity & connectively. The package focuses on three major areas - cultivation of leading-type new industries, structural advancement of key industries through convergence, and renovation of labor-intensive traditional industries - each with supporting tasks. Under the ministry's program to cultivate leading-type new industries there are three tasks. The first is to foster new convergence industries for people's happiness - safety, health, convenience, and culture - enhancing quality of life and creating high-quality jobs The plan calls for cultivation of 'Four New Convergence Industries" through organization of an inter-ministerial cooperation & convergence policy committee by September. The first of the four convergence industries is safety. In this sector, the projects include disaster & calamity monitoring and lifesaving robots. The second industry, health, will develop smart medical equipment. Convenience, the third convergence industry, will feature smart electrical home appliances and home control service. The final industry in the program, Culture, will concentrate on 3D holography tech grafting digital performance & fashion, etc. In support of the cultivation of leading-type industries, the ministry will pursue the establishment and promotion of 'Pan-Ministerial Improvement Methods Targeting Hardships & Restrictions Related to Convergence' to identify and improve 'partition-type' restrictions that undermine the creation of new convergence industries. This project will fall under the Industrial Convergence Development Committee to be set up in the first half of this year. The final task under this program is to nurture creative & convergence-type core talents who can take the lead in convergence at industrial sites, including identification and planning of new convergence businesses and market exploration. Under the program to achieve structural advancement of key industries through convergence, MOTIE identified two tasks. The first task is to spread IT convergence through next-generation mainstay products, such as smart cars and offshore plants. This task will seek to develop green ships and build related infrastructures, preoccupy smart car technologies, develop technologies to enhance green car functions, and develop and commercialize core IT-converged offshore plant equipment & parts. The second task is to expand investment in intelligent-type materials & parts and embedded software, the core of convergence competitiveness, and grow related industries. Here the focus will be on preparing 'First- Mover-Type Materials & Parts Development Strategies' by the end of 2013, promote 'Embedded SW-So-HW' linked-type convergence R&DB, and establish a 'Semiconductor 4.0 Strategy.' Under the program to renovate labor-intensive traditional industries, the ministry has laid out two tasks. The initial task is to nurture formerly labor-intensive traditional industries, like footwear, apparel, etc., into urban-type industries and promote convergence of living goods, including hanji (Korean paper), porcelain and jewelry, into famous brands. Under this task, MOTIE will work to identify projects for exchange and cooperation in footwear and textile industries by July, promote R&D of non-sewing footwear manufacturing processes & new materials and build urban-type, high-tech production facilities. The final task under this program is to improve the working environments of root enterprises, upgrade processes through IT convergence, promote automation projects and designate specialized industrial sites for establishment of jointly-utilized infrastructures like sewage & wastewater treatment facilities.

22 _ KMTI 2012-2013 (Korean Machine Tool Industry)

kmti_2013_.indd 22 2013-08-12 6:30:58 About KOMMA

KOMMA Mission

o Promoting Market Opportunities at Home and Abroad o Umbrella for International Cooperation & Collaboration o Building & Operating Networks for Information Exchange and Policy Development o Generating Opportunities to Upgrade Technical Competitiveness o Publicity & Publications Related to Machine Tool Industry

KOMMA Dedication & Inspiration Since 1979 Success Partner of Machine Tool Ind.

Since it was established in 1979, the Korea Machine Tool prosperity to all the peoples on the planet. Manufacturers′ Association (KOMMA) has played a pivotal role in the dynamic development of the Korean machine tool Armed with a firm dedication and commitment to advance industry, which now ranks fourth in the world with a Korean machine tool enterprises and beyond, KOMMA has production scale exceeding 6.4 trillion won declared Global Vision 2020, aiming to support Korea to become a world top-four machine tool industry nation with Navigating the global economic and industrial paradigm, annual production of US$18 billion, US$5 billion of which to KOMMA consistently, innovatively has been engaged in a full come from overseas production, by 2020. range of support to expand market accessibility at home and abroad, to develop cutting-edge technologies and human resources, to pursue standardization, etc. This broad spectrum of activities more recently has been adapted with a global focus under the principle of bringing common

Organization

Chairman Board of Directors Vice chairman

Director General

Planning Div. Business Div.

Economic Survey & Technical Survey & Cooperation Exhibition Business Public Relations Standards AAdministration

KMTI 2012-2013 (Korean Machine Tool Industry) _ 23

kmti_2013_.indd 23 2013-08-12 6:30:59 About KOMMA

Increase Enhance Upscale Technological Businesses Profitability Power

-Diversify Profit Sources - Develop New Technologies - Diversify Products Basic - Rationalize Parts Sourcing - Introduce Advanced Technologies - Expand Int'l Trade Strategies - Build Infrastructure - Supply Tech Manpower - Revamp Industrial Structure

Global Vision 2020

Global Top 4

- Domestic Production: US$13 Billion - Overseas Production: US$5 Billion

Goals (3.6 Trillion Won in 2005)

- Exports: US$7.2 Billion - Global Market Share: 15%

(US$1.2 Billion in 2005)

Hard-Core Hard-Core Candidate Specialized Global Leader Enterprises Enterprises Enterprises Parts & Others

2 Companies 3 Companies 10 Companies 20 Companies 2 Companies Sales: 5.4 Trillion Won Sales: 1.5 Trillion Won Sales: 2.0 Trillion Won Sales: 2.0 Trillion Won Parts Service Firms (Average: 2.5 Trillion (Average: 500 Billion (Average: 200 Billion (Average: 100 Billion Sales: 2.5 Trillion Won Won) Won) Won) Won)

Overseas Production: 30% Domestic Production: 70%

Short-Term Tasks Medium & Long-Term Tasks

2007 ~ 2010 2011 ~2020

Demand Industry Committee Secure o Organize & operate 'End-User Industry Forum' o Implement publicity programs targeting demanders and Demand-Driving o Set up & expand systems to enhance demand for machine hold product roadshows Engines tools o Establish ways of strengthening competitiveness for respective machine tools

End-User Industry Committee

o Investigate emerging markets abroad o Induce SMEs' joint marketing and establishment of service- Expand o Expand support for participation in overseas exhibitions and marketing specialized companies Int'l Trade o Establish marketing incubation windows o Expand KOICA's materials support for emerging markets o Investigate & analyze overseas market information

KOMMA (Member Companies) Secure o Organize private-government joint competitiveness o Support startup of new machine tool manufacturers Industrial/ enhancement promotion committee o Induce startup of system engineering companies Corporate o Operate expert committees by machine tool type & o Build OEM subcontract transaction rules & regulations Competitiveness industrial specialization o Stage publicity toward the general public and related organizations

Infrastructure Establishment Committee

Establish o Establish machine tool-specialized manpower pool Industrial database Infrastructures o Comparative investigation & research of machine tool o Construct 'Machine Tool Business Cooperation Sites' industries o Build networks with related organizations at home and abroad o Nurture technical manpower for next-generation machine tools Next-Gen. Technical Strategy Committee Secure o Support parts standardization & modularization technologies Technology o Promote common use & joint procurement of parts Development o Identify demand-linked-type joint technology development tasks Capabilities o Establish 'Machine Tool Industry Technology Research o Build foundation for international cooperation programs Center' o Operate regular education programs for corporate CEOs o Hold machine tool-related international symposiums and technical seminars

24 _ KMTI 2012-2013 (Korean Machine Tool Industry)

kmti_2013_.indd 24 2013-08-12 6:30:59 Promoting Market Opportunities at Home and Abroad

Designed to expand market accessibility and sales opportunities, KOMMA designs and executes sales promotion programs embracing exhibitions as well as overseas trade missions.

Organizing SIMTOS Korea, World Top 4 Machine Tool Marketing Platform Since 1986, KOMMA has organized and hosted the biennial SIMTOS Korea, which has now leapfrogged into the ranks of the top four machine tool exhibitions in the world, generating practical marketing opportunities for both domestic and foreign suppliers.

Covering 108,165 square meters, SIMTOS 2012 was almost twice as large as its predecessor in 2010 (53,541 square meters).

The premier event on the 2012 exhibition schedule brought together 762 exhibitors from 32 countries, outshining SIMTOS 2010's 459 exhibitors and 27 participating countries.

The six-day fair at KINTEX generated US$186.6 million in business contracts and consultations, drawing more than 3,256 foreign buyers.

Organizer of Korea Pavilions at Overseas Machine Tool-Related Exhibitions KOMMA is the primary support window for domestic machine tool- related enterprises′ participation in overseas exhibitions, organizing Korea Pavilions and delivering the full range of support across the entire cycle -- pre-show, during the exhibition and post-event.

The international shows where KOMMA has served as a support angel thus far include:

- EMO (Exposition Mondiale de la Machine Outil) - IMTS (International Manufacturing Technology Show) - CIMT (China International Machine Tool Show) - JIMTOF (Japan International Tool Fair) - IMTEX (Indian Machine Tool Exhibition)

Planning and Leading Trade Missions to Tap Overseas Markets Based on the strength of its networks, KOMMA guides Korean small and medium enterprises to collectively take part in trade missions abroad that are designed to develop new markets and business tie-ups with prospective overseas partners.

KMTI 2012-2013 (Korean Machine Tool Industry) _ 25

kmti_2013_.indd 25 2013-08-12 6:31:02 About KOMMA

Umbrella for International Cooperation & Collaboration

KOMMA plays the role of shepherd for engaging in international cooperation activities for common benefit, generating opportunities for exchanges of information related to technology and management strategies, etc. Major ongoing activities in these directions include: - The annual Korean-Japanese Committee for Cooperation of Machine Tool Associations - Korean-Chinese Machine Tool Manufacturers' Associations Meeting - Coordinating Conference between Asian Machine Tool Builders Associations (Korea, Japan, China, Taiwan, India) - International conferences: The annual Executive Board & General Assembly Meeting of International Federation of Robotics, IFR, and International Symposium on Robots, ISR - Regular machine tool statistics exchanges with international associations (CECIMO, GARDNER Publications Inc, AMT, JMTBA, VDW)

Building & Operating Networks for Information Exchange and Policy Development

KOMMA is operating and maintaining networks designed to facilitate information exchanges among member companies and to pool available knowledge and expertise to better machine tool industry environments.

Ad Hoc Committee Management KOMMA hosts eight special committee meetings on a monthly basis to discuss and recommend effective policies to relevant organizations including government ministries and agencies. The eight committees are

- Marketing Committee - Export Committee - Technical Committee - PRESS Committee - Robot Committee -Times New RomanISO Committee for Machine Tools, Industrial Physical Device Control - Human Resource Development Committee - Special Committee for SIMTOS

Meeting Management Among Government, Industry, Academia & Research Institutes - Free discussions with member companies by region - Issue-driven dialog among government officials, relevant business circles, etc.

Value Networking Events - Regular meetings with media representatives - Research-related meetings among industry, academia, research institutes - Annual Machine Tool Professionals’ Day

26 _ KMTI 2012-2013 (Korean Machine Tool Industry)

kmti_2013_.indd 26 2013-08-12 6:31:04 Generating Opportunities to Upgrade Technical Competitiveness KOMMA provides a variety of opportunities for member companies to sharpen their competitive edge with technological innovations and upgrades

- Seminar/forum on technology trends and prospects for machine tools and robots

Spreading the Benefits of Standardization KOMMA acts as the domestic ISO secretariat in the following fields

- TC 39 (Machine tools) - SC 2 (Test conditions for metal cutting machine tools) - SC 4 (Woodworking machines) - SC 6 (Noise of machine tools) - SC 8 (Work holding spindles and chucks) - SC 10 (Safety) - TC 184/SC 1 (Physical device control) - TC 184/SC 2 (Robots and robotic devices) - TC 29 (Small tools)

Operation of Standards Development Cooperation Institute - Harmonization with ISO specifications - Enactment & revision of Korean Standard development specifications

Other Services Supporting Greater Technical Competitiveness - Patent technology surveys - Operation of Trade Relief Center

Publicity & Publications Related to Machine Tool Industry To facilitate creative communication with related individuals and organizations, KOMMA consistently carries out publicity and publication projects related to the machine tool industry at home and abroad. It also surveys and publicizes analyses of trends in machine tool industry orders, production, inventories, and trade (export-Import) by machine type and country.

KOMMA ’s regular publications are - Monthly publication, 'Machine Tools' - Machine Tool Statistics Handbook - Annual publication, Korean Machine Tool Industry - KOMMA's Activity Report and KOMMA Members Directory - English version of publications to aid member companies′ exports

KMTI 2012-2013 (Korean Machine Tool Industry) _ 27

kmti_2013_.indd 27 2013-08-12 6:31:06 Member Companies

KOMMA Members

Chairman

COMPANY WEBSITE PRODUCTS NAMSUN MACHINERY Milling, NC Milling, Machining www.namsuntool.co.kr CORPORATION Center, 5-Face Machining Center

Vice Chairmen

COMPANY WEBSITE PRODUCTS DONG YANG MAGNIX www.magnix.co.kr CNC Tapping Center CO., LTD. CNC Lathe, Machining Center, Line DOOSAN INFRACORE Center, Gantry Loader, Multi-Axis www.doosaninfracore.co.kr CO., LTD. Turning Center, Horizontal CNC Boring & Milling Machine Semi-NC Lathe, CNC Lathe, CNC Roll HANKOOK MACHINE www.hanmachine.com Lathe, CNC Vertical Lathe, Machining TOOLS CO., LTD. Center, Polishing Machine CNC Late, Machining Center, HWACHEON CNC Milling Machine, Radial Drilling MACHINERY www.hwacheon.com Machine, Semi CNC Lathe, CO., LTD. Conventional Lathe CNC Lathe, Machining Center, HYUNDAI WIA Cylindrical Grinding M/C, Industrial www.wia.co.kr CORPORATION Robot, Horizontal Boring M/C, Press Manufacturing Crook, Full Automation Tandem Press SIMPAC INC. www.simpac.co.kr Line, Link Motion Press, Transfer Press, High Speed Press, Hydraulic Press

Auditors

COMPANY WEBSITE PRODUCTS CNC (Computerized Numerical FANUC KOREA Control), Machining Center, www.fkc.co.kr CORPORATION Wire Cutting Electric Discharge Machine, Industrial Robot Precision Surface Grinding M/C, CNC YOUIL MACHINERY www.youilmc.com Grinding M/C, Ceramic Glass Cutting WORKS CO., LTD. & Grinding M/C

28 _ KMTI 2012-2013 (Korean Machine Tool Industry)

kmti_2013_.indd 28 2013-08-12 6:31:07 Directors

COMPANY WEBSITE PRODUCTS Automotive Parts, Total Conveyor System, Hydraulic Power Unit, ACE MECH CO., LTD. www.acemech.co.kr Centralized Coolant System, Filtering System A-RYUNG MACHINERY www.aryung.co.kr Pump IND. CO., LTD.

HANKWANG CO., LTD. www.hankwang.co.kr Laser Cutting Machine

HANWHA TECHM CNC Swiss-type Turning Machines, www.hanwhatechm.co.kr CO., LTD. Centerless Grinding Machines CNC Lathes, CNC Milling Machines, HWACHEON MACHINE www.hwacheon.com Machining Centers, Automated TOOL CO., LTD. Systems Hydraulic Power Unit, Hydraulic. IL RIM NANOTECH www.ilrim.co.kr Valve Assembly, Panel Air Conditioner, CO., LTD. Nano Cooler, Coolant Cooler Electric Discharge M/C, Precision Mold JIN YOUNG PRECISION www.kojin.co.kr & Die, Forming Grinding M/C, Wire MACHINE CO., LTD. Electric Discharge M/C KIHEUNG MACHINERY Milling Machine, CNC Milling M/C, www.kiheung.com CO., LTD. Machining Center

KOREA NIKKEN LTD. www.nikken-kosakusho.co.jp Milling Chuck & NC Tool Holders

NEXTURN CO., LTD. www.nexturn.co.kr CNC Automatic Lathe

OSG KOREA www.osg.co.kr Tap, Endmills, Rolling Dies, Drill, Gauge CORPORATION Machining Center, CNC Lathe, S&T DYNAMICS CNC Boring Machine, Gear Cutting www.hisntd.com CO., LTD. Machine, Cylindrical Grinding Machine, Conventional Lathe SAMCHULLY Power Chuck, Rotary Cylinder, Drilling www.samchully.com MACHINERY CO., LTD. & Tapping Machine

Endmills, Taps, Drills, Spade Drills, YG-1 CO., LTD. www.yg1.co.kr Rotary Burrs

KMTI 2012-2013 (Korean Machine Tool Industry) _ 29

kmti_2013_.indd 29 2013-08-12 6:31:07 Member Companies

METAL CUTTING MACHINES

COMPANY WEBSITE PRODUCTS Double and Single Side Fine Lapping/ AM TECHNOLOGY www.amtechnology.co.kr Polishing Machine, Slot Grinding Machine, CO., LTD. Wafer Back Grinding Machine Camshaft Inspection Gage, Crankshaft CESCO CO., LTD. www.mycesco.com Inspection Gage

CHEIL E&M CO., LTD. www.cheilenm.co.kr Roll Grinding Machine, Cylinder Block

CSCAM www.cscam.co.kr CAD/CAM Lathe, 5-Axis Machine

DAE SAN MACHINERY www.grindmachine.com Surface Grinding Machine IND. CO., LTD. Centerless Grinding Machines, Lapping DAEYOUNG Machines, Super Finishing Machines, www.dymach.com MACHINERY CO., LTD. Soot Blowing EQPT, Special Purpose Machines DELTA MACHINERY Circular Saw Machine (DT-65, DT-100, www.deltasaw.com CO., LTD. DT-1300), Band Saw Machine (MFA-450) CNC Turning Center, Machining DMC CO., LTD. www.idmc.kr Center, Tapping Center DONG JIN MACHINERY Circular Sawing M/C, Air Press, www.djmc.co.kr CO., LTD. Hydraulic Press, Riveting Machine

EASTARSR CO., LTD. www.hyundai-inm.com CNC LATHE, MACHINING CENTER

H.S. Machinery Co. www.myQuest.co.kr NC Engraving Machine

CNC Double Disc Grinding Machine, HANBEE MACHINERY Internal Grinding Machine, External www.hanbeemachine.com CO., LTD. Grinding Machine, Super Finishing Machine Router Machine, Window Glass Grinding HANS MACHINE CO., LTD. www.hansmachine.com Machine HANTO CUTTING www.cnccut.com CNC PLASAMA/GAS CUTTING M/C SYSTEM CO., LTD.

Harim Machinery CO., LTD www.harimco.com CNC HIGH-SPEED MACHINE

CNC Horizontal Boring Machine, CNC HNK MACHINE TOOL www.hnkkorea.com Vertical Boring & Turning Machine, CNC CO., LTD. Planomilling Machines, CNC Roll Lathe HYUNDAI MOTOR www.hyundai.com Machining Center, Machine Tool COMPANY

K2LASER SYSTEM INC. www.k2laser.com CW Fiber Laser Cutting Machine

KDM CO., LTD. www.kdm-korea.co.kr CNC Horizontal Lathe

KEUM DONG TURNING CENTER, BORING MACHINE www.keumdong.co.kr MACHINERY CO., LTD. CENTER Tapping Center Machine, Machining KOMATEC CO., LTD. www.komatec.co.kr Center KOREA GUN DRILL www.gundrill.co.kr Deep Hole Drilling Machines CO., LTD.

30 _ KMTI 2012-2013 (Korean Machine Tool Industry)

kmti_2013_.indd 30 2013-08-12 6:31:08 METAL CUTTING MACHINES

COMPANY WEBSITE PRODUCTS

KTC CO., LTD. www.ktc-edm.co.kr Small Hole Electrical Discharge Machine

KUKJAE ENGINEERING Lettering / Engraving Machine, CNC Plano www.kukjaeeng.co.kr CO,. LTD. Miller, Type Drilling, Rotary Tilting Table Broaching M/C, Honing M/C, Heavy Duty KUKJE DIAMOND IND www.kukjedia.com Large CNC Lathe, Portable Milling M/C, CO., LTD. Deep Hole Boring M/C

MTM (NISSAN TANAKA) www.mtm4.com PLASMA, Laser

Machining Center, Dril·Tap Center, Milling NAMBUK CO., LTD. www.nambuk-machine.co.kr Machine, Radial Drilling Machine, Automatic Tapping Machine PROTECH INNOTION www.probe.co.kr Milling Machine CO., LTD. SAMSUNG MACHINERY High-Speed Machining Center, Cutting www.i-sm.co.kr CO., LTD. Tools, Oil Skimmer, Tool Grinder CNC Router, CNC Laser Cutting Machine, SHINHWA TECH. www.shtcnc.com CNC Plasma Cutting Machine, CNC Wooden Model Processing Machine, etc. CNC Deep Hole Drilling Machine, CNC Drill SHIN-IL MACHINERY shinil.thesome.com Center,CNC Drilling Machine For Structural CO., LTD. Steel, CNC Notch Cutting Machine CNC Angular Grinding Machine, CNC SKEM CO., LTD. www.skem.co.kr Universal Cylindrical Grinding Machine, CNC Lathe Machiner (KIT 450, KIT 60G)

SMEC CO., LTD. www.esmec.com CNC Lathe, Machining Center Robot

5-axis High-Speed Mold Center, High- SONGBOW TMS www.songbow.com Speed Mold/Die Center VITRIFIED DIAMOND & CBN WHEEL, SOON YANG D&M www.soonyang.com SYD-630 DIAMOND/CBN DOUBLE-SIDE CO., LTD. LAPPING MACHINE

SpaceONE Co., Ltd. www.spaceone.kr CNC PLASMA MACHINE

CYLINDRICAL GRINDER, SPECIAL SUNG HOON., LTD. www.sunghoon.co.kr EXTERNAL GRINDER, SPECIAL INTERNAL GRINDER SUNWOO SHIPPING CNC Milling M/C, Milling M/C, Slotting www.bongshin.co.kr/ TECHNOLOGY CO., LTD. M/C, Radial Drilling M/C Grinding M/C, CNC Lathe Ball Screw, Tongil Industries Co., LTD. www.Ticg.co.kr Automobile Parts

TOPS CO., LTD. www.tops21.com CNC WATERJET CUTTING SYSTEM

Ureatac.co., LTD. www.ureatac.co.kr Refrigerator Production Line, Machine Tools

WONGONG MACHINERY Band Sawing M/C, Hack Sawing M/C, www.wongong.co.kr CO., LTD. Cutting WONIL PRECISION www.avg.co.kr Wire Cut E.D.M MACHINE CO., LTD. http://home.moatv.com/ WOOJIN G.M.C CO., LTD. Universal Grinder imwjjung111111

WOOYOUNG INDUSTRY www.wymaxs.com Band Saw Machine, Band Saw Blade CO., LTD.

KMTI 2012-2013 (Korean Machine Tool Industry) _ 31

kmti_2013_.indd 31 2013-08-12 6:31:08 Member Companies

METAL FORMING MACHINES

COMPANY WEBSITE PRODUCTS DAE IN MACHINERY Hydraulic Shearing www.daeinmc.com CO., LTD. Machine, Hydraulic Press Brake Machine CNC Hyd. Press Brake, CNC Hyd. Shearing GOOK DO MACHINERY www.gookdo.com Machine, Hydraulic Press Hyd. Roller CO., LTD. Bending Machine C-type Single Crank Press (CSKJ-80), HANOUL TECHNICAL D-Type www.hanoul-tec.com Frame Straight Side Double Knuckle Press CO., LTD. (HDKJ-250) Die Spotting Press & Try-0ut Press, H-Type HWAIL PRESS CO., LTD. www.hwailpress.co.kr Forming/Trimming Press, Hydraulic Press HYUNDAE MECHANIC & Bench Type Hydraulic Press, Pneumatic www.hdpress.com ELECTRIC CO., LTD. Riveting

KUKDON . www.kukdongeng.co.kr HYDRAULIC PRESS M/C

Semi H-Type Double Crank Press, H-Type KUKIL PRECISION CO., LTD. www.kukilpress.co.kr/ Single Crank Press, Straight Side Double Crank Press

MESOTEC Co., Ltd. www.mesotec.kr CNC Gas Cutting Machine

NAM YANG MACHINERY Die Spotting Press & Try-Out Press, H-Type www.nyhyd.co.kr MFG CO., LTD. Forming/Trimming Press, Hydraulic Press

ROBOTS

COMPANY WEBSITE PRODUCTS Robotics, Motors and Drives, Measurement ABB LTD. www.abb.co.kr and Actuation Fuses and Switch Gear, Transformers, Switch Gears HYUNDAI HEAVY Industrial Robot, Press (500˜2,500 tons) www.hhi.co.kr INDUSTRIES CO., LTD. Conveyer System KAWASAKI MACHINE www.kawasakirobot.co.kr Industrial Robot SYSTEMS KOREA, LTD.

MYKEY CO., LTD. www.mykey21.com Industrial Robot

NT Research Inc. www.ntresearch.net NTT Vision-NS, RAMeX RoMAN

ROBOSTAR CO., LTD. www.robostar.co.kr Industrial Robot, Equipment

Medium Duty Liner Guidance, Heavy Duty S.P SYSTEMS CO., LTD www.spsystems.co.kr Liner Guidance, Multi Axis Liner SAMSUNG MECHATRONICS & www.sec.co.kr Industrial Robot, Equipment MANUFACTURING TECHNOLOGY CENTER

32 _ KMTI 2012-2013 (Korean Machine Tool Industry)

kmti_2013_.indd 32 2013-08-12 6:31:08 PARTS

COMPANY WEBSITE PRODUCTS PANEL AIRCON, FAN COOLER, AIRMAJOR www.airmajor.co.kr DEHUMDIFIER Hydraulic Components & Systems, BOSCH REXROTH www.boschrexroth.co.kr Pneumatic Components & Systems, LM KOREA LTD. Guides & Modules

CAP HI-TECH www.capco.co.kr Industrial Machine, Parts DUST Collector, FUME DUST Collector, OIL www.chca.co.kr CHUNGHO C.A CO., LTD. MIST Collector, ODOR Eliminator Cable Chain, CPSFLEX, CPSFIX, Robo-kit, CP SYSTEM CO., LTD. www.cpsystem.co.kr Sabin Chain

CURIOUS www.sentrol.net CNC CONTROLLER

DAE KWANG PYEONG CO., LTD. www.dkp1.co.kr Curvic Coupling, Twdes Table, ATC

DAESUNG HI-TECH SLIDER FEED UNIT, PRECISION PARTS CO. LTD. www.topdsht.com PROCESSING

DAEYANG www.dymecha.com FAN COOLER, HI COOLER, AIR-CON MECHATRONICS CO, LTD.

DAEYANG TECH. CO., LTD. www.daeyangtech.co.kr NC ROLL FEEDER DAEYOUNG TECH www.daeyoung-tech.com CNC Index Rotary Table, Nozzle, ATC CO., LTD.

DLC CO., LTD. www.dlckorea.com Curvic Couplings

DONGSEO Die Casting, Industrial Heater, Special www.dongseomecha.co.kr MECHATRONICS CO., LTD. Machine, Factory Automation

DS SolidWorks Corp. www.solidworks.com 3D CAD Software

POWER-LOCK, LOCK-NUT, COUPLING, DURIMITEC CO., LTD. www.durimitec.com BEARING CNC Machine Tool, Defense and Aerospace, EM KOREA Co., LTD. www.yesemk.com Power Generation, Robot Machine CUTTING TOOL, VISE, SOFTWARE, High- ESHIM TECH CO., LTD. www.eshimtech.com Speed Cutting Machine, Machining Center, Grinding Machine

Tool Holder, Mill Turret, Clamp Wedge, EWS KOREA CO., LTD. www.ewskorea.co.kr Turret, Disk GS Gear www.gsgear.co.kr Gear, Reducer, Bearing

Oil Cooler, Oil Skimmer, Dp Switch, Foot

HAN KOOK JEONJAE www.kem.co. Switch, Rotary Switch, LED Signal Lamp, CO., LTD . Spark Killer, Interface Cover

HAN SUNG www.hansungs.com TOOL SEAL, COVER, M/C PARTS

INVESTMENT CASTINGS (EXCAVATOR HANIL INVESTMENT PARTS, AUTO PARTS, BAKERY MACHINE CASTING CO., LTD. www.hanil83.co.kr PARTS)

KMTI 2012-2013 (Korean Machine Tool Industry) _ 33

kmti_2013_.indd 33 2013-08-12 6:31:09 Member Companies

PARTS

COMPANY WEBSITE PRODUCTS

Hankook Delcam Ltd. www.delcam.co.kr FeatureCAM, PowerMILL, PartMaker

HANSUNG PRECISION Coolant Pump, Oil Pump, Rotor Pump, www.halslube.com CO., LTD. Grease Pump

HIGEN MOTORS CO., LTD www.higenmotor.com Servo Motor, Servo Drive, Induction Motor

CNC-Turning Center, Vertical Machine IENTECO., LTD. www.ienteco.com Center, Conveyor, Fltering System

KAE SUNG C.F.S. CO., LTD. www.kscfs.co.kr COOLANT TANK CLEANER

KAESUNG MAGNET Magnetic Lifter, Magnetic Drill Press, www.ksmag.co.kr MACHINERY CO., LTD. Coolant Cleaner, Magnetic Tool

KASWIN www.kaswin.com SPINDLE UNIT, ATC UNIT, TABLE UNIT

Chiller, High Pressure Equipment, KEMTECH CO., LTD. www.kemtech.co.kr FILTER (Automatic, Semi-Automatic), OIL Separator KHAN WORKHOLDING www.khanchuck.com/ Special Chuck, Collet Chuck, Index Chuck CO, LTD. 3D Coordinate Measuring Machine, KIMEAS www.kimeas.co.kr Contour Measuring Machine, Height Measuring Instrument

KOMOTEK CO., LTD. www.komotek.com SERVO MOTOR

Korea Research Center for Oscilloscope, Digital Multimeter, Puncture www.krcmi.co.kr Measuring Instruments Tester, Frequency Counter, Meter Calibrator Built-In Spindles, High Frequency Spindles, KOSPIN CO., LTD. www.kospin.com Milling & Boring Spindles, Air Cooling Type Spindles

KTICC kticc.com Measuring Instrument

IN & POST PROCESS GAUGES, MANUAL Marposs T & E Company Limited www.marposs.com GAUGES, TOOL & PART CHECK SYSTEM, METROLOGY & GAUGES OIL COOLER, PANEL AIRCON, SPOT MASTER TECH CO., LTD. www.mastertech.co. kr COOLER Servo Motor, Servo Drive, Motion METRONIX CO., LTD. www.metronix.co.kr Controller, Encoder

MODERN ENGINEERING www.moderne.co.kr Gantry Robot

N-SolutionBank www.ncass.net NCASS, NCBrain, MS, VISI

OTRA CO., LTD. www.otra.co.kr High Precision Mold Components

SAMICK MECHATRONICS samickmc.com Enclosure Cooling System CO., LTD.

34 _ KMTI 2012-2013 (Korean Machine Tool Industry)

kmti_2013_.indd 34 2013-08-12 6:31:10 PARTS

COMPANY WEBSITE PRODUCTS

SAMICK TECH CO., LTD. www.samicktech.co.kr A.T.C/AP.C/INDEX TABLE

SAMICK THK CO, LTD. www.samickthk.co.kr LM System, Mechatro System, Files & Rasps SAMWHA ELECTRIC SAMWHAFLEX, SAMWHA FLEX www.samwhaflex.co.kr CO., LTD. CONNECTOR, SAMWHA CONTROL UNIT LM GUIDE, Ball Screw, Support Unit, Ball SBC LINEAR CO., LTD. www.sbclinear.co.kr Bushing

SEO JIN F.A www.seojinfa.co.kr CNC LATHE AUTO LOADER

SEOAM MACHINERY GEAR, CHUCK, CYLINDER, www.seoam.kr

IND. CO., LTD. CURVIC COUPLING www.siemens.co.kr SIEMENS LTD. CNC SYSTEM Special Power Chucks, SBL Chucks, Pin SINKANG ENGINEERING Arbor Chucks, Finger Chucks, Indexing www.sinkang.co.kr CO., LTD. Chucks, Gear Chucks, Compensating Chucks

SM KOREA CORP. www.sugino.co.kr SMART JET, SELFEEDER, NC ROTARY TABLE

STA Inc. www.stasta.com High Frequency Motor Spindle

Hydraulic System, Coolant System, Coolant STAUFF KOREA LTD. www.stauff.co.kr V/V, Hydraulic Component, Coolant Filter SUNG WON TECH INDEX, ATC (Automatic Tool Changer), www.sungwontech.com CO., LTD. APC (Automatic Pallet Changer)

SUNG WOO www.sungwoo7.co.kr Chip Conveyor, ATC, APC, AAC

Portable Air Conditioner, Panel Air WELTEM CO., LTD. www.weltem.com Conditioner, Oil Cooler, Infrared Heater YHB CO., LTD. www.yhb.co.kr Damoa Mist, Purdao Mist, Power Nut, Power Link Machine Tool Operating Panel, Portable YOUNG CHANG CO., LTD. www.ycent.com MPG YOUNGRIM ENGINEERING. www.youngrim.co.kr Air Feeder, NC Leveller Feeder, Uncoiler CO., LTD. YUDO-ROBOT1CS www.yudorobotics.com Gantry Loader, Bar Feeder CO., LTD. Aircraft Engine Parts, Airframe Parts, CAM YUNAM TECH., LTD. www.yunamtech.co.kr Machne, Turbo Impeller

KMTI 2012-2013 (Korean Machine Tool Industry) _ 35

kmti_2013_.indd 35 2013-08-12 6:31:10 Member Companies

TOOLS

COMPANY WEBSITE PRODUCTS ACE DIAMOND TOOL www.acediatool.com PCD Reamer, PCD Endmill, PCD Drill CO., LTD. Indexable Milling Cutter, Indexable Drill, BPK Inc. www.bp-korea.com Turning Tool, Arbor CEimiRY PRECISION www.cty.co.kr Standard Gear Hob CO., LTD Machine Screw for Cutting Tool, Machine CMT CO., LTD. www.cometmt.co.kr Lever for Cutting Tool, Screwdriver DAEDUCK TCOJNG www.dtool.co.kr Throw-away Holders SYSTEM Co., Ltd. Angular Head, Collet Chuck, FBH Boring, Head Turn Mill Balance Cut, Oil Holder, DINE Inc. www.dine.co.kr Micro Unit, CBN/PCD Cutting Tool Boring Unit DRAGON PRECISION GEAR HOB CUTTER, MILLING CUTTER, HSS www.dragon.co.kr TOOLS CO., LTD. TOOLS MILLING CHUCK, HIGH SPEED COLLET DSP TOOLING CO., LTD. www.dsptool.co.kr CHUCK, HYDRAULIC CHUCK

DYC CO., LTD. www.dyctool.co.kr Reamers, Countersinks, Cutters

GUHRING KOREA CO., LTD. www.guhring.cakr Drill, Milling Cutter, Tap, PCD Tools

HAEDONG SPECIAL Diamond Cutting Tools, Cemented Carbide www.hamcotool.co.kr MANUFACTURING CO., LTD. Tools, High Speed Steel Tools

HANSONG M&T www.hsmnt.com Carbide End Mill

HYUNJIN PRECISION www.h-j.co.kr Hole Saw, Broach Cutter, Stap Drill CO., LTD. INKOK INDUSTRIAL COUPLING, POWER-LOCK, BREAK, www.inkoKco.kr CO., LTD. MECHANICAL PART

Jang Jin Tools www.jjtools.co.kr/ PCBN End Mills

JE-IL SOLUTION CO., LTD. www.jeil-tool.com Machine Tool Holder (ARBOR)

Milling Machine Tools (Milling Chuck, JINYOUNG CO. www.jycollet.co.kr Collet, Milling Tool Holder)

JUNGSAN DIAMOND www.jsdia.com PCD, PCBN TOOLS

KENNAMETAL INC. www.kennametal.com Cutting Tools

KOREA TECHNICS LTD. www.koreatechnics.com Cutting Tools

Carbide Insert, Endmill & Drill, Indexable KORLOY INC. www.korloy.com Endmill, Cutter Body Boring Bar, Lathe Holder, Aluminum Cutter, KJ&C CO., LTD. Endmill Cutter

36 _ KMTI 2012-2013 (Korean Machine Tool Industry)

kmti_2013_.indd 36 2013-08-12 6:31:11 TOOLS

COMPANY WEBSITE PRODUCTS Fine Boring Tool, PCD Cutting Tool, Spindle MAPAL HTT CO., LTD. www.mapalhiteco.com Unit, Tool Presetter Tungsten Carbide Endmill, Solid Drill, Tip MEGA PLUS DONGJIN www.djmegaplus.com Coolant Drill, Broach Reamer, Solid Center Drill

MOTOOL CARBIDE CO. www.motool.co.kr Power Feed Contact

Balinit Coated Tools, Balinit Coated OERLIKON BALZERS www.oerlikon.com Components, Balinit Coated Automotive COATING KOREA CO., LTD. Parts SAM YOUNG CUTTING www.sytool.co.kr CBN END MILL, EXCEL END MILL TOOLS. INC Tools & Inserts for Turning, Milling & SANDVIK KOREA LTD. www.coromant.sandvik.com/kr Drilling Boring Tools, Holding Tools, Tooling Systems

SECO TOOLS KOREA LTD. www.secotools.com/kr Holder for Inserts, etc.

SHIN SAE KEE TOOL Twin Boring Bar, Tapping ER Chuck, Milling www.ssktool.co.kr CO., LTD. Chuck, Arbor Cutting Tools, Ceramic, Cermet Cutting SSANGYONG MATERIAL www.ssym.com Tools (Inserts & Cutters, Holders), PCD & CORPORATION PCBN, Endmill & Drill, Tooling Systems Shaving Cutter, Hob, Chamfer & Deburring SU-KOREA CO., LTD. www.su-korea.com Tools Tungsten Carbide Cutting Tools (Insert & TAEGLTTEC LTD. www.taegutec.co.kr Holder), M/C Tool, PCD Tools Tungsten Carbide Rod, Tungsten Carbide Powders

TnC SHARK Co., Ltd. www.tncsharKcom Annular Cutter, Shark Cut, 0-Ring Cutter

Carbide Cutting Tools (Endmills, Drills, WIDIN CO., LTD. www.iwidin.com Reamers) Kruz Drill, Indexable Drill, Indexalble Eco YESTOOL CO., LTD. www.yestool.co.kr Cutter, Solid Carbide Drill/Reamer/Endmill

KMTI 2012-2013 (Korean Machine Tool Industry) _ 37

kmti_2013_.indd 37 2013-08-12 6:31:11 Korea Machine Tool Industry Statistics & Beyond

Korean Machine Tool Industry Supply and Demand Overview

Machine Tool Orders by Year

Machine Tool Orders by Product

Machine Tool Orders by User Industry

Production by Product and Year

Exports by Product and Year

Imports by Product and Year

Top-Three Imported Products by Major Country

Top-Three Importing Countries by Major Product

Production by Industry

KMTI 2012-2013 (Korean Machine Tool Industry) _ 38

kmti_2013_.indd 38 2013-08-12 6:31:11 Korean Machine Tool Industry Supply and Demand Overview

(Unit : ￦Million) supply Demand Import Export Ratio Year Dependence Production Imports Domestic Export (%)  ￦ $ ￦ $ (%) 1981 67,444 91,190 137,199 21,435 31.8 66.5 1982 91,233 64,944 130,022 26,155 28.7 28.7 1983 130,269 111,102 224,334 17,037 13.1 49.5 1984 173,273 111,673 267,108 17,838 10.3 41.8 1985 183,988 203,492 366,624 20,856 11.3 55.5 1986 320,446 277,024 573,597 23,873 7.4 48.3 1987 481,058 384,993 836,376 29,675 6.2 46.0 1988 719,247 416,734 1,097,014 38,967 5.4 38.0 1989 829,674 528,250 1,303,248 54,676 6.6 40.5 1990 1,039,745 609,703 1,587,184 62,264 6.0 38.4 1991 958,598 715,869 1,674,467 72,543 7.6 44.7 1992 756,538 762,003 1,431,350 87,191 11.5 53.2 1993 945,171 572,698 1,428,550 89,319 9.5 40.1 1994 1,352,202 781,217 1,984,858 148,561 11.0 39.4 1995 1,462,968 1,105,847 2,311,055 257,760 17.6 47.9 1996 1,533,533 1,042,810 2,191,552 384,791 25.1 47.6 1997 1,379,546 983,647 2,036,652 326,540 23.7 48.3 1998 1,232,764 606,082 1,114,708 724,138 58.7 54.4 1999 1,347,929 732,977 1,622,500 458,406 34.0 45.2 2000 1,942,057 1,332,015 2,755,984 518,088 26.7 48.3 2001 1,759,160 1,202,120 2,430,890 530,390 30.2 49.5 2002 1,961,238 976,203 2,415,990 521,451 26.6 40.4 2003 2,415,148 1,667,362 3,279,989 802,521 33.2 50.8 2004 2,826,654 1,897,305 3,623,110 1,100,849 38.9 52.4 2005 3,595,934 2,119,998 4,530,876 1,185,056 33.0 46.8 2006 3,927,084 2,464,560 4,860,884 1,530,760 39.0 50.7 2007 4,473,781 1,255,079 4,041,796 1,687,064 37.7 31.1 2008 4,831,000 1,474,070 4,194,520 2,110,550 43.7 35.1 2009 3,519,696 1,445,788 3,418,417 1,547,067 44.0 42.3 2010 5,327,795 1,668,861 5,056,865 1,939,791 36.4 33.0 2011 6,375,265 1,790,863 5,864,693 2,301,435 40.0 34.2 2012(p) 6,424,000 1,492,452 5,641,707 2,550,745 44.7 32.1

Source: Stastistics Korea, Korea Customs Service (p): preliminary

KMTI 2012-2013 (Korean Machine Tool Industry) _ 39

kmti_2013_.indd 39 2013-08-12 6:31:12 Statistics & Beyond

Machine Tool Orders by Year

(Unit : ￦Million) Orders Domestic Orders Export Orders

Year Cutting Forming Machine Machine Total Chang(%) Chang(%) Chang(%) Tools Tools 1992 336,867 40,696 377,563 -23.6 343,655 -26.4 33,908 24.3 1993 469,663 54,730 524,393 38.9 495,246 44.1 29,147 -14.0 1994 642,196 52,317 694,513 32.4 638,053 28.8 56,460 93.7 1995 784,071 73,102 857,173 23.4 742,498 16.4 114,675 103.1 1996 942,067 107,069 1,049,136 22.4 769,826 3.7 279,310 143.6 1997 782,315 114,272 896,587 -14.5 703,397 -8.6 193,190 -30.8 1998 730,657 34,366 765,023 -14.7 280,242 -60.2 484,781 150.9 1999 946,561 126,388 1,072,949 40.3 649,033 131.6 423,916 -12.6 2000 1,091,015 153,610 1,244,625 16.0 846,527 30.4 398,098 -6.1 2001 994,332 121,588 1,115,920 -10.3 707,377 -16.4 408,543 2.6 2002 1,120,002 201,529 1,321,531 18.4 931,478 31.7 390,053 -4.5 2003 1,252,907 222,791 1,475,698 11.7 1,025,923 10.1 449,775 15.3 2004 1,478,694 223,809 1,702,503 15.4 1,121,304 9.3 581,199 29.2 2005 1,822,004 273,091 2,095,095 23.1 1,365,857 21.8 729,238 25.5 2006 2,091,195 249,572 2,340,767 11.7 1,356,599 -0.7 984,168 42.0 2007 2,165,968 283,251 2,449,219 4.6 1,281,182 -5.6 1,168,037 18.7 2008 2,378,819 332,252 2,711,071 10.7 1,268,800 -1.0 1,442,271 23.5 2009 1,665,406 246,911 1,912,317 -29.5 1,107,832 -12.7 804,485 -44.2 2010 3,055,354 436,161 3,491,515 82.6 2,086,326 88.3 1,405,189 74.7 2011 3,855,032 471,594 4,326,626 23.9 2,394,781 14.8 1,931,845 37.5 2012 3,020,552 483,505 3,504,507 -19.0 1,728,133 -27.8 1,775,924 -8.1 1 246,824 35,556 282,380 -24.1 169,512 -14.7 112,868 -34.8 2 282,834 58,892 341,726 -12.6 161,144 -15.2 180,582 -10.2 3 312,331 56,187 368,518 -29.9 180,043 -38.3 188,475 -19.4 4 288,276 42,246 330,522 -29.4 172,349 -41.9 158,173 -8.0 5 285,206 64,561 349,767 -16.8 154,826 -39.0 194,941 17.1 6 287,366 53,314 340,680 -10.6 170,556 -22.4 170,124 5.4 7 238,513 32,012 270,525 -16.9 130,463 -26.6 140,062 -5.1 8 200,223 37,058 237,281 -15.7 117,869 -30.9 119,412 7.8 9 216,596 33,609 250,205 -19.0 122,796 -16.9 127,409 -20.9 10 222,487 20,868 243,355 -16.2 132,204 -9.5 111,151 -22.9 11 247,931 31,220 279,151 0.4 116,450 -23.3 162,701 28.9 12 191,965 17,982 209,947 -26.1 99,921 -33.3 110,026 -18.0

Source: KOMMA

40 _ KMTI 2012-2013 (Korean Machine Tool Industry)

kmti_2013_.indd 40 2013-08-12 6:31:12 Machine Tool Orders by Product

(Unit : ￦Million) NC NC Machining Non-NC Non-NC Non-NC Grinding Year Press Others Total Lathe Milling Center Lathe Milling Drilling Machine 1991 106,607 17,261 63,351 64,209 50,210 12,247 19,081 84,985 76,134 494,085 1992 91,204 13,764 66,886 39,987 34,007 6,382 10,071 40,696 74,566 377,563 1993 154,558 21,913 111,930 46,863 53,815 7,813 14,831 54,730 57,940 524,393 1994 224,693 30,145 138,316 66,847 86,701 10,237 16,400 52,317 68,857 694,513 1995 297,202 26,272 180,628 63,264 99,438 10,897 15,935 73,102 90,435 857,173 1996 409,003 26,634 218,751 55,073 84,823 15,328 14,477 106,169 118,878 1,049,136 1997 309,881 26,545 197,449 33,421 53,258 18,043 11,335 114,272 132,383 896,587 1998 405,890 28,973 167,439 15,758 15,654 3,068 6,498 34,522 85,221 763,023 1999 972,065 35,246 276,276 30,179 51,912 10,249 11,302 126,388 159,332 1,672,949 2000 417,635 34,833 314,139 32,319 71,653 11,101 14,044 153,610 194,291 1,243,625 2001 426,339 27,464 289,076 28,087 45,884 7,752 9,926 121,588 159,804 1,115,920 2002 413,126 19,960 343,166 33,988 56,752 9,957 13,544 200,306 230,732 1,321,531 2003 457,383 31,201 439,466 31,875 51,033 9,574 12,620 222,791 219,755 1,475,698 2004 602,757 26,213 516,289 32,987 60,962 9,725 28,606 223,809 201,155 1,702,503 2005 820,055 44,751 657,447 20,875 64,721 12,494 24,621 273,091 177,040 2,095,095 2006 901,535 17,174 635,796 25,328 48,222 14,440 27,636 249,572 421,064 2,340,767 2007 1,028,089 34,458 656,995 44,344 40,043 14,254 38,077 283,251 309,708 2,449,219 2008 1,131,993 62,510 734,522 39,772 35,043 11,579 39,247 332,252 324,153 2,711,071 2009 736,125 17,234 544,745 20,254 28,556 6,482 34,650 248,789 275,482 1,912,317 2010 1,321,876 15,061 1,089,841 34,049 48,670 10,166 81,397 432,314 458,141 3,491,515 2011 1,684,719 35,182 1,366,407 33,238 49,938 6,123 81,295 460,761 608,963 4,326,626 2012 1,126,171 14,935 1,294,275 32,447 44,034 2,521 50,265 474,114 465,745 3,504,507

Source: KOMMA

KMTI 2012-2013 (Korean Machine Tool Industry) _ 41

kmti_2013_.indd 41 2013-08-12 6:31:12 Statistics & Beyond

Machine Tool Orders by User Industry

(Unit : ￦Million) Steel/ Total Metal General Electric& Auto- Ship- Precision Other Year Other Manufa Others (Domestic Goods Machinery Electronics mobile building Machinery Metal -cturing orders) 1991 13,295 38,149 87,055 19,820 143,062 4,138 24,514 26,881 109,885 466,799 1992 4,721 29,634 46,988 10,586 147,702 3,444 21,412 19,096 60,072 343,655 1993 8,937 28,561 75,141 20,999 167,388 2,768 29,541 76,270 85,641 495,246 1994 13,973 45,006 116,355 26,693 180,196 5,853 38,691 43,742 167,544 638,053 1995 16,634 50,402 125,024 29,419 223,387 16,876 40,789 52,259 187,708 742,498 1996 15,099 50,996 100,766 44,356 279,805 26,714 47,881 48,267 155,942 769,826 1997 11,079 54,740 78,483 83,238 253,734 27,658 46,636 54,955 92,874 703,397 1998 1,824 27,312 43,233 28,414 91,778 15,770 19,040 17,047 35,824 280,242 1999 7,782 97,243 99,661 41,286 237,607 14,915 45,419 31,728 73,392 649,033 2000 10,982 104,258 85,629 84,632 334,969 20,730 69,502 44,711 91,247 846,660 2001 18,982 122,000 96,473 58,544 235,237 23,413 72,467 30,385 49,876 707,377 2002 18,755 157,877 127,870 101,936 312,803 30,966 66,032 49,485 64,531 930,255 2003 18,479 134,801 128,212 86,440 425,594 33,733 67,310 64,143 67,211 1,025,923 2004 15,583 174,359 146,667 78,530 405,016 45,586 93,931 95,193 66,439 1,121,304 2005 33,089 198,499 198,469 132,501 470,121 44,864 131,509 92,009 64,796 1,365,857 2006 56,856 178,832 229,325 84,252 520,637 75,955 115,470 55,649 39,623 1,356,599 2007 53,977 150,651 223,240 101,726 448,717 149,228 87,167 41,816 24,660 1,281,182 2008 44,268 135,937 264,907 97,555 352,992 198,478 89,175 48,744 36,744 1,268,800 2009 69,689 109,331 201,297 127,984 308,116 148,331 59,536 54,463 29,085 1,107,832 2010 134,479 214,224 334,500 364,947 760,508 33,421 64,442 91,178 88,627 2,086,326 2011 205,238 297,366 380,304 221,535 850,358 127,889 83,138 127,836 101,117 2,394,781 2012 153,895 182,915 287,037 140,876 623,613 81,860 39,674 132,684 85,579 1,728,133

Source: KOMMA

42 _ KMTI 2012-2013 (Korean Machine Tool Industry)

kmti_2013_.indd 42 2013-08-12 6:31:13 Production by Product and Year

(Unit : ￦Million) Product 2007 2008 2009 2010 2011 Laser Processing M/C 89,579 103,741 95,757 188,717 230,047 Electronics Discharge Processing M/C 44,907 45,824 52,496 54,954 54,081 Applied Other Electronics Applied Machines 50,401 66,344 43,810 131,231 77,017 M/C Sub Total 184,887 215,909 192,063 374,902 361,145 Machining Center 864,277 969,719 695,064 1,077,734 1,373,313 Special Purpose M/C 103,313 294,374 302,847 353,011 494,608 NC Lathe 1,124,701 1,205,680 739,809 1,327,773 1,466,095 General Purpose Lathe 54,836 42,611 42,691 86,846 112,561 Drilling M/C 37,390 33,168 28,791 24,674 39,193 Boring M/C 212,808 89,816 87,668 40,337 212,265 Cutting Machines NC Milling M/C NA NA NA NA NA General Purpose Milling M/C 77,033 99,514 116,651 127,583 87,661 Tapping M/C 14,009 16,461 16,829 49,852 59,513 Grinding M/C 53,117 59,703 71,331 85,222 126,017 Gear Grinding M/C 0 0 6,275 15,008 21,025 Saw M/C 34,687 36,595 38,309 37,913 41,536 Other Cutting M/C 85,765 44,812 89,275 218,779 206,611 Sub Total 2,761,391 2,892,453 2,235,540 3,444,732 4,240,398 Hydraulic Press 47,913 61,572 38,064 47,052 55,316 Mechanical Press 966,033 626,502 567,876 817,300 952,174 Bending M/C 106,683 126,703 151,988 181,688 208,089 Shearing M/C 127,074 141,560 82,898 97,333 133,807 Forming Punching/Notching M/C 16,865 23,021 13,176 11,860 18,977 Machines Forging M/C 27,935 81,336 7,433 21,925 18,023 Drawing M/C 0 0 0 0 0 Thread Rolling M/C 45,671 56,513 36,185 63,157 73,126 M/C for Working Wire 59,644 98,673 94,488 150,474 199,481 Other Forming M/C 129,685 506,758 99,985 117,372 114,729 Sub Total 1,527,503 1,722,638 1,092,093 1,508,161 1,773,722 Total 4,473,781 4,831,000 3,519,696 5,327,795 6,375,265

Source: Statistics Korea Note: NC Milling M/C & General Purpose Milling M/C are combined in tally from 2004 (p): preliminary

KMTI 2012-2013 (Korean Machine Tool Industry) _ 43

kmti_2013_.indd 43 2013-08-12 6:31:13 Statistics & Beyond

Exports by Product and Year

(Unit : US$1,000) Product 2003 2004 2005 2006 2007 Cutting Machines 515,997 719,895 864,936 1,229,923 1,374,961 NC Lathe 185,677 279,623 405,045 530,866 699,594 NC Milling M/C 4,945 9,127 3,399 4,253 20,527 Machining Center 157,748 212,048 206,627 265,870 332,516 NC Drilling M/C 1,711 6,154 5,418 5,908 6,492 NC Boring M/C 10,866 6,835 10,763 10,512 16,762 NC Gear Cutting M/C 9 5,075 4,779 1,486 6,354 NC Grinding M/C 2,611 4,393 9,177 7,686 15,652 Lathe 44,605 12,498 16,411 20,318 13,497 Milling M/C 9,622 13,220 13,022 17,288 22,068 Boring M/C 5,472 9,861 9,572 18,541 30,695 Grinding M/C 7,535 18,889 27,217 33,551 30,540 Gear Cutting M/C 573 3,509 2,621 3,597 4,311 EDM 5,681 11,721 11,473 14,754 679 Saw M/C 7,076 8,709 18,853 17,442 25,986 Drilling M/C 8,153 8,087 6,268 12,230 9,355 Other Cutting M/C 63,713 110,146 114,291 265,621 1,344,422 Forming Machines 157,344 242,621 292,074 371,961 441,368 Press 81,843 120,136 155,748 204,585 225,832 Drawing M/C 9,038 15,147 16,910 20,803 21,777 Punching/Notching M/C 3,015 5,341 3,953 4,083 5,643 Shearing M/C 10,656 12,264 39,209 54,809 101,594 Bending M/C 25,171 45,693 36,637 24,751 42,856 Forging M/C 15,520 17,657 26,357 20,706 26,609 Thread Rolling M/C 4,331 2,111 2,140 3,540 2,718 Other Forming M/C 7,770 24,272 11,120 38,684 375,799 Total 673,341 962,516 1,157,010 1,601,884 1,816,329

Source: Korea Customs Service Note: NC Milling M/C & General Purpose Milling M/C are combined in tally from 2004

44 _ KMTI 2012-2013 (Korean Machine Tool Industry)

kmti_2013_.indd 44 2013-08-12 6:31:13 Exports by Product and Year

(Unit : US$1,000) Product 2008 2009 2010 2011 2012 Cutting Machines 1,404,182 862,980 1,178,446 1,556,781 1,808,598 NC Lathe 692,732 310,022 364,111 691,695 772,010 NC Milling M/C 11,107 19,957 7,380 13,083 16,959 Machining Center 350,581 215,329 339,282 441,653 606,232 NC Drilling M/C 13,028 16,089 7,313 7,942 13,815 NC Boring M/C 24,560 25,222 46,524 99,052 82,884 NC Gear Cutting M/C 3,728 1,304 1,676 7,881 5,226 NC Grinding M/C 13,185 9,034 9,383 13,655 17,721 Lathe 18,792 18,167 16,113 24,490 16,128 Milling M/C 26,178 34,563 40,817 17,768 14,256 Boring M/C 40,175 30,435 44,402 441 963 Grinding M/C 30,539 58,883 58,547 25,227 33,713 Gear Cutting M/C 782 1,208 2,913 10,709 3,493 EDM 1,211 2,165 2,496 18,931 13,817 Saw M/C 19,460 16,771 21,497 18,493 27,362 Drilling M/C 10,391 6,518 8,488 8,926 11,060 Other Cutting M/C 147,733 97,313 207,504 156,835 172,959 Forming Machines 505,665 349,455 499,574 744,654 742,147 Press 269,484 172,349 243,583 415,140 373,560 Drawing M/C 27,926 22,429 44,139 53,440 22,252 Punching/Notching M/C 6,539 4,044 9,495 6,419 9,133 Shearing M/C 65,569 61,919 83,834 52,815 22,238 Bending M/C 65,475 39,456 47,208 76,485 68,545 Forging M/C 39,764 37,260 38,563 65,572 128,973 Thread Rolling M/C 2,326 1,615 1,204 2,014 1,628 Other Forming M/C 28,582 10,383 31,548 72,769 115,818 Total 1,909,847 1,212,435 1,678,020 2,301,435 2,550,745

Source : Korea Customs Service Note : NC Milling M/C & General Purpose Milling M/C are combined in tally from 2004

KMTI 2012-2013 (Korean Machine Tool Industry) _ 45

kmti_2013_.indd 45 2013-08-12 6:31:13 Statistics & Beyond

Imports by Product and Year

(Unit : US$1,000) Product 2003 2004 2005 2006 2007 Cutting Machines 1,241,008 1,467,274 1,835,688 2,333,716 1,037,811 NC Lathe 46,014 62,104 94,660 74,972 104,711 NC Milling M/C 36,284 17,597 19,070 28,368 34,609 Machining Center 219,417 151,919 198,663 332,397 270,381 NC Drilling M/C 7,407 7,275 11,203 12,201 9,540 NC Boring M/C 5,627 3,320 6,312 7,074 9,253 NC Gear Cutting M/C 22,744 21,485 21,886 26,689 21,090 NC Grinding M/C 94,613 66,368 97,314 120,839 93,409 Laser Processing M/C 97,768 108,014 112,890 155,551 72,859 Lathe 19,998 14,437 20,908 24,231 38,455 Milling M/C 13,590 11,685 9,509 13,967 17,311 Boring M/C 13,569 6,397 13,196 21,934 26,657 Grinding M/C 35,754 43,958 34,634 63,067 85,471 Gear Cutting M/C 24,898 24,153 20,760 32,969 18,878 EDM 27,617 38,183 14,231 16,007 10,053 Saw M/C 18,092 20,986 25,042 33,883 37,845 Drilling M/C 17,032 19,831 7,106 9,920 9,823 Special Processing M/C 440,431 733,314 966,780 1,221,440 0 (semiconductor facility) Other Cutting M/C 100,153 116,248 161,524 138,207 177,466 Forming Machines 184,349 191,615 234,137 245,355 312,836 Press 54,933 59,436 70,101 61,567 82,092 Drawing M/C 9,378 5,683 9,347 5,900 6,990 Punching/Notching M/C 24,210 23,914 32,375 32,165 44,778 Shearing M/C 6,718 15,854 13,970 17,326 17,511 Bending M/C 34,612 40,344 50,045 63,951 23,469 Forging M/C 22,516 25,739 33,521 40,364 58,115 Other Forming M/C 31,982 20,645 24,778 24,082 79,881 Total 1,425,357 1,658,889 2,069,825 2,579,071 1,350,647

Source : Korea Customs Service Note : The amount in machines for semiconductors is excluded from 2007

46 _ KMTI 2012-2013 (Korean Machine Tool Industry)

kmti_2013_.indd 46 2013-08-12 6:31:13 Imports by Product and Year

(Unit : US$1,000) Product 2008 2009 2010 2011 2012 Cutting Machines 1,041,594 808,419 1,145,853 1,459,491 1,185,480 NC Lathe 144,627 137,450 160,669 154,707 104,981 NC Milling M/C 26,059 38,898 35,814 39,144 28,866 Machining Center 256,183 133,485 258,988 327,233 247,578 NC Drilling M/C 13,020 5,333 5,548 4,138 12,916 NC Boring M/C 19,117 14,363 2,181 26,026 26,403 NC Gear Cutting M/C 22,288 35,691 26,025 80,733 56,659 NC Grinding M/C 91,798 95,754 124,801 181,382 142,125 Laser Processing M/C 146,484 77,838 145,047 262,668 266,189 Lathe 63,228 37,900 33,877 46,276 31,984 Milling M/C 19,953 8,942 12,266 15,864 16,981 Boring M/C 20,756 13,134 15,707 2,589 3,576 Grinding M/C 56,699 59,523 105,557 47,728 37,693 Gear Cutting M/C 31,776 36,238 41,912 17,817 6,522 EDM 7,193 7,698 7,438 6,511 6,669 Saw M/C 37,830 23,145 35,672 42,335 35,773 Drilling M/C 15,213 10,063 14,445 7,972 11,982 Special Processing M/C 0 0 0 0 0 (semiconductor facility) Other Cutting M/C 69,370 72,964 119,906 196,368 148,583 Forming Machines 292,889 324,644 297,798 331,372 306,973 Press 68,866 75,493 86,893 116,673 108,128 Drawing M/C 10,787 7,685 11,740 33,956 35,676 Punching/Notching M/C 6,743 10,789 24,385 20,126 18,261 Shearing M/C 23,490 51,405 22,739 29,146 13.964 Bending M/C 42,440 88,529 80,635 62,007 71,090 Forging M/C 37,141 56,267 37,983 35,231 28,470 Other Forming M/C 103,422 45,265 33,423 34,233 31,384 Total 1,334,483 1,133,063 1,443,651 1,790,863 1,492,452

Source: Korea Customs Service Note: The amount in machines for semiconductors is excluded from 2007

KMTI 2012-2013 (Korean Machine Tool Industry) _ 47

kmti_2013_.indd 47 2013-08-12 6:31:13 Statistics & Beyond

Top-Three Imported Products by Major Country

(Unit : US$1,000) 2009 2010 Country Product Value Ratio Product Value Ratio Machining Center 71,839 16.5% Machining Center 143,565 19.4% Japan NC Lathe 51,785 11.9% NC Grinding M/C 85,040 11.5% NC Grinding M/C 51,188 11.7% NC Lathe 79,585 10.8% Shearing M/C 43,875 16.6% NC Lathe 62,096 25.4% Germany NC Lathe 36,953 14.0% Machining Center 45,345 18.5% Bending M/C 27,961 10.6% Gear Cutting M/C 20,375 8.3% Bending M/C 14,761 16.0% Forging M/C 8,932 9.7% Switzerland Forging M/C 13,338 14.5% NC Grinding M/C 8,548 9.3% Press 12,989 14.1% Gear Cutting M/C 8,303 9.1% Grinding M/C 18,629 26.6% Bending M/C 18,847 36.8% Italy Machining Center 15,161 21.7% Lathe 7,119 13.9% Bending M/C 6,222 8.9% Grinding M/C 3,305 6.5% NC Lathe 16,598 24.0% Grinding M/C 5,638 10.1% China Lathe 7,258 10.5% Press 5,532 9.9% Machining Center 6,478 9.4% NC Lathe 5,460 9.8% NC Lathe 21,631 51.3% NC Milling M/C 7,586 43.5% Austria NC Milling M/C 14,609 34.7% NC Lathe 5,034 28.9% NC Bending M/C 3,085 7.3% NC Bending M/C 4,607 26.4% Machining Center 3,307 9.1% Bending M/C 18,056 25.2% U.S.A. Grinding M/C 3,151 8.7% Machining Center 10,157 14.1% Bending M/C 2,700 7.4% Grinding M/C 7,838 10.9% Machining Center 12,985 39.6% Machining Center 43,490 48.6% Taiwan Lathe 2,520 7.7% Saw M/C 4,670 5.2% Forging M/C 2,110 6.4% NC EDM 3,985 4.5% Forging M/C 16152 89.7% Machining Center 2,022 46.0% Czech NC Grinding M/C 1327 7.4% NC Grinding M/C 1,165 26.5% Republic Lathe 526 2.9% Lathe 426 9.7% Laser Processing M/C 8,937 70.7% Laser Processing M/C 13,187 62.6% Singapore NC EDM 2,628 20.8% NC EDM 4,644 22.0% Machining Center 477 3.8% Machining Center 2,548 12.1%

Source: Korea Customs Service Note: The amount in machines for semiconductors is excluded from 2007

48 _ KMTI 2012-2013 (Korean Machine Tool Industry)

kmti_2013_.indd 48 2013-08-12 6:31:14 Top-Three Imported Products by Major Country

(Unit : US$1,000) 2011 2012 Country Product Value Ratio Product Value Ratio Machining Center 200,313 20.7% Machining Center 141,967 19.3% Japan NC Grinding M/C 122,603 12.7% NC Grinding M/C 86,342 11.7% NC Lathe 116,065 12.0% NC Lathe 79,020 10.7% NC Gear Cutting M/C 48,648 19.5% NC Gear Cutting M/C 38,588 19.7% Germany Machining Center 45,892 18.4% Machining Center 26,033 13.3% NC Grinding M/C 20,051 8.1% NC Grinding M/C 22,741 11.6% Machining Center 16,478 13.9% Machining Center 12,791 11.5% Switzerland NC EDM 13,712 11.5% NC Grinding M/C 11,636 10.5% NC Grinding M/C 13,141 11.1% NC EDM 9,475 8.5% Drawing M/C 21,626 30.7% Bending M/C 23,143 27.5% Italy Bending M/C 8,104 11.5% Machining Center 17,854 21.2% Non-NC Lathe 7,713 11.0% Drawing M/C 9,134 10.9% NC Lathe 12,923 16.9% Drawing M/C 19,558 20.4% China Drawing M/C 5,164 6.7% Press 8,068 8.4% Non-NC Lathe 5,103 6.7% NC EDM 7,066 7.4% Bending M/C 6,301 56.5% Bending M/C 4,874 37.8% Austria Forging M/C 1,744 15.6% Saw M/C 4,200 32.5% Saw M/C 1,391 12.5% NC Milling M/C 2,553 19.8% Machining Center 9,181 15.9% Machining Center 12,217 23.9% U.S.A. Forging M/C 3,948 6.8% Press 8,980 17.6% NC Lathe 3,811 6.6% NC Lathe 4,928 9.7% Machining Center 47,025 45.0% Machining Center 29,804 32.2% Taiwan Saw M/C 7,706 7.4% NC Drilling M/C 8,118 8.8% Forging M/C 7,293 7.0% Saw M/C 7,302 7.9% NC Grinding M/C 7,209 54.2% NC Grinding M/C 5,484 93.1% Czech NC Boring M/C 4,941 37.1% Non-NC Lathe 179 3.0% Republic NC Lathe 1,153 8.7% NC Lathe 138 2.3% Machining Center 6,072 17.1% NC EDM 5,048 10.6% Singapore NC EDM 3,185 9.0% Machining Center 3,434 7.2% Saw M/C 567 1.6% Non-NC Drilling M/C 453 0.9%

Source: Korea Customs Service Note: The amount in machines for semiconductors is excluded from 2007

KMTI 2012-2013 (Korean Machine Tool Industry) _ 49

kmti_2013_.indd 49 2013-08-12 6:31:14 Statistics & Beyond

Top-Three Importing Countries by Major Product

(Unit : US$1,000) 2009 2010 Product Country Value Ratio Country Value Ratio Japan 71,839 53.8% Japan 143,565 55.4% Machining Center Italy 15,161 11.4% Germany 45,345 17.5% Germany 12,985 9.7% Taiwan 40,473 15.6% Switzerland 20,616 26.5% Japan 72,762 39.9% Laser Processing M/C Japan 15,062 19.4% Switzerland 37,572 20.6% Germany 14,101 18.1% Germany 27,401 15.0% Japan 51,188 53.5% Japan 85,040 68.1% NC Grinding M/C Germany 25,717 26.9% Germany 16,839 13.5% Italy 6,147 6.4% Italy 8,548 6.8% Japan 51,785 37.7% Japan 79,585 49.5% NC Lathe Germany 36,953 26.9% Germany 62,096 38.6% Austria 21,631 15.7% China 5,460 3.4% Italy 18,629 31.3% Japan 74,311 70.4% Grinding M/C Japan 15,719 26.4% U.S.A. 7,838 7.4% Germany 1943 3.3% China 5638 5.3% Japan 43,983 58.3% Japan 60,687 69.8% Press Switzerland 14,987 19.9% Germany 7,746 8.9% Germany 8702 11.5% Switzerland 5,586 6.4% Germany 22,255 25.1% Japan 18,902 23.4% Bending M/C Japan 16,711 18.9% Japan 18,847 23.4% Switzerland 14761 16.7% Switzerland 18,056 22.4% Japan 21605 38.4% Japan 22807 60.0% Forging M/C Czech Republic 16152 28.7% Switzerland 8932 23.5% Switzerland 13338 23.7% Taiwan 2864 7.5% Switzerland 4,280 19.8% Japan 16,685 68.4% Punching/Notching M/C Japan 3,457 16.0% Italy 3,537 14.5% Germany 1,008 4.7% Germany 1,871 7.7% Germany 5,259 68.3% Japan 4,809 47.6% Special Processing M/C Japan 1,317 17.1% U.S.A. 666 6.6% Taiwan 835 10.8% Taiwan 588 5.8%

Source: Korea Customs Service Note: The amount in machines for semiconductors is excluded from 2007

50 _ KMTI 2012-2013 (Korean Machine Tool Industry)

kmti_2013_.indd 50 2013-08-12 6:31:14 Top-Three Importing Countries by Major Product

(Unit : US$1,000) 2011 2012 Product Country Value Ratio Country Value Ratio Japan 200,313 61.2% Japan 141,967 57.3% Machining Center Taiwan 47,025 14.4% Taiwan 29,804 12.0% Germany 45,892 14.0% Germany 26,033 10.5% Japan 14,365 25.7% Japan 12,905 23.8% NC EDM Thailand 13,761 24.6% Thailand 10,197 18.8% Switzerland 13,712 24.5% Switzerland 9,175 17.5% Japan 122,603 67.6% Japan 86,342 60.8% NC Grinding Germany 20,051 11.1% Germany 22,741 16.0% Switzerland 13,141 7.2% Switzerland 11,636 8.2% Japan 116,065 75.0% Japan 79,020 75.3% NC Lathe China 12,923 8.4% China 6,379 6.1% Germany 10,682 6.9% Taiwan 5,612 5.3% Japan 28,933 60.6% Japan 26,326 69.8% Grinding Switzerland 4,820 10.1% China 3,196 8.5% China 4,363 9.1% Taiwan 2,334 6.2% Japan 68,492 58.7% Japan 65,429 60.5% Press Germany 15,870 13.6% Germany 15,581 14.4% Netherlands 6,338 5.4% U.S.A. 8,980 8.3% Japan 25,356 40.9% Japan 23,544 33.1% Bending M/C Italy 8,104 13.1% Italy 23,143 32.6% Germany 7,948 12.8% Germany 7,979 11.2% Japan 9,676 27.5% Japan 8,625 30.3% Forging M/C Italy 3,997 11.3% Switzerland 6,205 21.8% U.S.A. 3,948 11.2% Italy 2,659 9.3% Japan 32,155 65.3% Japan 18,352 56.9% Punching/Notching M/C Germany 4,926 10.0% China 3,144 9.8% China 4,134 8.4% Italy 1,453 4.5% Germany 48,648 60.3% Germany 38,588 68.1% NC Gear Cutting M/C Japan 21,448 26.6% Switzerland 8,929 15.8% Switzerland 3,308 4.1% Japan 6,072 10.7%

Source: Korea Customs Service Note: The amount in machines for semiconductors is excluded from 2007

KMTI 2012-2013 (Korean Machine Tool Industry) _ 51

kmti_2013_.indd 51 2013-08-12 6:31:14 Statistics & Beyond

Production by Industry

(Unit : ￦100 Million) (Machinery Industry)

Year Manufacturing Machinery Industry General Machinery Metal Goods Total Total Machine Tool 1986 919,496 170,116 35,518 43,615 3,204 1987 1,139,052 232,825 45,030 56,324 4,811 1988 1,343,314 285,103 46,869 73,770 7,192 1989 1,484,773 350,189 70,613 88,348 8,297 1990 1,764,397 458,243 62,861 139,066 10,397 1991 2,056,990 538,067 85,743 176,892 9,586 1992 2,268,166 585,638 92,063 178,663 7,565 1993 2,559,261 670,575 108,017 200,785 9,452 1994 2,992,462 828,451 140,080 245,821 13,522 1995 3,648,213 1,011,674 169,577 309,243 14,630 1996 4,019,521 1,248,184 201,745 310,760 15,335 1997 4,349,084 1,329,799 201,802 308,891 13,795 1998 4,250,083 1,094,517 161,346 237,086 12,328 1999 4,541,586 1,329,912 180,048 253,175 13,479 2000 5,344,503 1,561,755 205,143 328,493 19,421 2001 5,486,671 1,710,810 208,335 328,863 17,592 2002 5,940,397 1,910,288 236,961 369,327 19,612 2003 6,345,419 2,058,727 260,815 420,490 24,151 2004 7,490,754 2,457,981 340,286 516,619 28,239 2005 8,016,876 2,694,495 363,304 561,626 35,959 2006 8,596,731 3,001,213 393,463 614,357 39,271 2007 9,486,435 3,375,791 469,782 678,992 44,738 2008 10,847,950 3,840,929 548,975 790,246 48,310 2009 11,219,731 3,835,231 538,341 727,090 35,197 2010 13,348,333 4,596,246 627,297 922,823 53,278

Source: Statistics Korea, Korea Association of Machinery Industry

52 _ KMTI 2012-2013 (Korean Machine Tool Industry)

kmti_2013_.indd 52 2013-08-12 6:31:15 Production by Industry

(Unit : ￦100 Million) (Machinery Industry) Machine Tool Ratio Year Transportation Electric machinery Precision Machinery Machinery Industry General Machinery Equipment 1986 33,460 48,960 8,563 1.9% 7.3% 1987 44,712 75,091 11,668 2.1% 8.5% 1988 55,038 94,089 15,337 2.5% 9.7% 1989 60,791 113,678 16,759 2.4% 9.4% 1990 57,091 180,792 18,433 2.3% 7.5% 1991 65,844 189,040 20,548 1.8% 5.4% 1992 78,669 214,656 21,587 1.3% 4.2% 1993 85,464 250,201 26,108 1.4% 4.7% 1994 98,806 311,543 32,201 1.6% 5.5% 1995 125,546 369,232 38,076 1.4% 4.7% 1996 160,062 541,493 34,125 1.2% 4.9% 1997 156,079 619,867 43,161 1.0% 4.5% 1998 142,869 513,797 39,420 1.1% 5.2% 1999 210,497 642,461 43,730 1.0% 5.3% 2000 251,071 726,661 50,386 1.2% 5.9% 2001 268,439 853,518 51,654 1.0% 5.3% 2002 288,036 957,806 58,158 1.0% 5.3% 2003 301,461 1,022,485 53,476 1.2% 5.7% 2004 337,912 1,184,853 78,312 1.1% 5.5% 2005 342,379 1,336,970 90,216 1.3% 6.4% 2006 375,294 1,514,816 103,283 1.3% 6.4% 2007 404,352 1,706,180 116,486 1.3% 6.6% 2008 471,765 1,913,085 116,858 1.3% 6.1% 2009 500,658 1,952,225 117,017 0.9% 4.8% 2010 614,881 2,283,256 147,990 1.2% 5.8%

Source: Statistics Korea, Korea Association of Machinery Industry

KMTI 2012-2013 (Korean Machine Tool Industry) _ 53

kmti_2013_.indd 53 2013-08-12 6:31:15 kmti_2013_.indd 54 2013-08-12 6:31:15