"Chiiik, pook, taktak."
On the 5th of this month, the first factory of PIM KOREA in Gyeongsan, North Gyeongsang Province, was in full operation. Employees were busy moving between the dense machinery inside the factory to check the processing procedures. The first thing that caught the eye was a black mass that looked like clay. As unknown powders and granules were fed into a machine resembling a flour mixer, the black mass poured out below. "This is the first step, the kneading process. We are mixing metal powder and binder to create feedstock for molding," said Kim Se-joong, a director at PIM KOREA.
As I moved to another area of the factory, injection molding, which involves injecting the feedstock into molds to create desired shapes, was in full swing. The black mass transformed into components the size of a finger joint. Robotic arms tirelessly moved the finished products to the shelves. They were parts for turbochargers that recover and compress energy from exhaust gases generated in internal combustion engines to enhance automotive fuel efficiency and output.
The components, which had taken on a plausible shape through kneading and injection, moved on to the final processes of debinding and sintering. Debinding is the process of removing the binder mixed with the metal powder in the first step (kneading). Director Kim stated, "The role of the binder is to help the metal powder easily take the shape of the component. Since the binder has completed its role, it is now being removed." Sintering involves high-temperature heating of the molded body from which the binder has been removed to secure mechanical properties and density.
◇ Supplying turbocharger parts to global corporations with metal dissimilar injection technology
The four-step process that leads from kneading to injection to debinding to sintering is the metal powder injection molding (MIM) method that PIM KOREA prides itself on. Founded in 2001, PIM KOREA is a manufacturer with outstanding technological prowess in the MIM field. MIM is a technology that uses metal powder to inject and sinter metal components instead of traditional methods such as casting or machining. It enables mass production of complex and precise metal components using various materials like titanium and aluminum. Mixing two different new materials in dissimilar injection is also a specialty of this company. Typically, dissimilar injection is done with plastics, but PIM KOREA uniquely possesses metal dissimilar injection technology in the country. The company describes this as hybrid new material technology.
It all started with laptop and mobile phone parts. PIM KOREA succeeded in its first export by developing laptop parts in 2002 and rapidly grew by supplying feature phone hinges to Motorola and Samsung Electronics. However, the ever-changing mobile phone trends hindered the stability of the business. Frequent design change requests from client companies led to fluctuations in sales. Song Jun-ho, CEO of PIM KOREA, noted, "After much deliberation, we attempted to expand into the automotive parts market, which has a longer breathing space than mobile phones."
In 2007, PIM KOREA succeeded in developing turbocharger parts for vehicles that had been traditionally produced using casting methods into the MIM method. Continuous research and development (R&D) investment enabled a quick response to the market. As of 2024, the proportion of R&D investment to PIM KOREA's revenue is at 6%, the highest level in the industry. 35% of management positions are filled by R&D-related personnel. R&D primarily takes place at the headquarters in Daegu. The production base was moved in 2019 to Nam Dinh City, located 80 kilometers south of Hanoi, Vietnam. The Gyeongsan first factory visited that day is a high-value-added automation process base.
PIM KOREA began mass production of vehicle turbocharger parts in 2008 and secured global automotive parts companies such as BorgWarner, iA, and Valeo as clients. Domestically, it supplies metal parts to Hyundai Transys, LG Innotek, and HL Mando. Sales rose to 25.2 billion won in 2021, 36 billion won in 2022, and 38 billion won in 2023. Out of the total revenue of 38 billion won in 2023, 21.4 billion won was earned from exports. During the same period, operating profit improved from -900 million won to 2.8 billion won and then 4.3 billion won.
◇ Expansion into medical, IT, and autonomous driving… Entering KOSDAQ in April
PIM KOREA derives 80% of its total revenue from automotive parts. In addition to turbochargers, the company's other major automotive part, the dual-clutch transmission (DCT), is expected to continue its growth trends for the time being. However, to stabilize its revenue base more reliably, it is expanding the application areas of MIM. Executive Director Jeong Jae-ok remarked, "MIM technology boasts excellent productivity and cost competitiveness, and it can be customized, making it easily applicable across various industries."
PIM KOREA seriously ventured into diversifying its revenue by supplying titanium parts to Ostem Implant, the number one dental implant company in the country, in 2019. Last year, it received a development request from a leading domestic camera module company and is providing parts for autonomous driving. It is also supplying parts for smartwatches to global smartphone manufacturers. Executive Director Jeong stated, "Tests are being conducted by clients for products applicable to smartphones and smart rings," adding, "We will commence mass production within the year."
PIM KOREA, a company listed on KONEX, has recently passed the preliminary examination for KOSDAQ listing by the Korea Exchange. It plans to undergo demand forecasting in March and transfer to the KOSDAQ market on April 4th. The funds secured from the transfer will be used to establish titanium powder manufacturing facilities for MIM and to expand the production lines. CEO Song Jun-ho noted, "Currently, we purchase metal powder from outside, but in the future, we will receive materials from POSCO and produce them in-house," stating, "This will allow for both cost reduction and improved quality of finished products." The company also plans to use the KOSDAQ listing as an opportunity to expand its IT parts-exclusive factory in its Vietnam subsidiary.
IBK Securities, the underwriter for the initial public offering (IPO) of PIM KOREA, signed a representative underwriting contract with PIM KOREA in October 2021. Following the appointment of Seo Jeong-hak as CEO in 2023, IBK Securities established the "SME Solutions Department" and is accelerating support for financing small and medium-sized enterprises. The SME Solutions Department is promoting funding tailored to the lifecycle of small and medium-sized enterprises and customized corporate finance services through corporate finance (IB), IPO, private equity (PE), and new technology investment combinations. An IBK Securities official stated, "We decided to invest and lead the IPO based on the high potential of the excellent processing technology called MIM."
CEO Song stated, "With the KOSDAQ listing as an opportunity, we will aggressively target global markets and enjoy the fruits of the company's growth with our shareholders," adding, "We will actively consider shareholder return policies such as dividend payments and stock buybacks."