There is a term called 'the best of Joseon,' named after the last name of a representative domestic researcher in secondary batteries. The protagonists are Jo Jae-pil, head of SM LAB, Professor Sun Yang-gook from Hanyang University, and Professors Choi Jang-wook and Kang Ki-seok from Seoul National University. They are all world-class researchers selected by global academic institution Clarivate, recognized for having papers cited in the top 0.1%.
Jo Jae-pil, head of SM LAB, is the only one among the best of Joseon who quit being a professor to start a business. He met on the 11th in Ulsan's Ulju County at the headquarters and noted, "I felt regrettable and the school urged me to take a leave, but I thought that to fully commit to business, focusing is the right approach."
Jo founded SM LAB in 2018 while being a professor at Ulsan National Institute of Science and Technology (UNIST). Most professors leave for a while when they start a business to keep their return path open, but he submitted his resignation to focus on the company last June.
SM LAB creates single crystal cathode materials for secondary batteries that Jo has researched since his professor days. A secondary battery is one that allows for free charging and discharging. For instance, in a lithium battery, lithium ions stored at the anode move to the cathode, resulting in electron movement that generates current. When charged, lithium ions from the cathode return and combine with electrons. Therefore, cathode materials are core elements that determine the capacity, output, and lifespan of secondary batteries.
Jo stated, "We have world-class technology in the single crystal cathode material field." SM LAB was also listed as a company with national advanced strategic technology designated by the Ministry of Trade, Industry, and Energy in May 2023. This program is designed to protect and nurture companies with key technologies in the semiconductor, display, secondary battery, and bio fields, and among the nine selected companies, all except SM LAB are large corporations listed on the stock market.
Despite its outstanding technological capabilities, SM LAB is facing difficulties in the 'death valley' of startups. Death valley refers to the period when businesses that have been established for about 3 to 7 years experience challenges in financing or market entry during the commercialization process.
SM LAB has raised a cumulative investment amount exceeding 200 billion won. However, last year, the entire secondary battery industry fell into a slump due to the global electric vehicle chasm (temporary demand stagnation), and difficulties arose, including trading suspension of its affiliated company Kumyang in the stock market, halting SM LAB’s growth. SM LAB attempted a technical special listing last year, but it was unsuccessful as the Korea Exchange did not grant permission. In front of the SM LAB building, there was a construction site that had stopped at a third factory building.
Jo revealed he is negotiating with overseas battery companies to find new customers. He mentioned, "The combined production capacity of factories 1 and 2 is about 10,000 tons, but with this scale, it's difficult to supply domestic battery companies, so we are discussing with small to medium-sized overseas battery companies," adding, "We are sending samples to about ten overseas customers, including Taiwan, for verification, and we plan to pursue relisting in 2027 once sales are secured."
Jo expressed disappointment at the government's technology commercialization strategy and support for deep tech companies. He recounted the story of being eliminated from the '2025 National Advanced Strategic Industry Technology Innovation Loan Program' conducted by the Korea Industrial Technology Promotion Agency and the Ministry of Trade, Industry, and Energy. This program provides low-interest research and development (R&D) funds to companies in related fields, allowing loans of up to 5 billion won for each corporation, which is essential for companies like SM LAB struggling with financing.
However, SM LAB was not selected as a recipient of this support program. Despite being named a national advanced strategic technology holding company and recognized for its world-class technology, the sole issue was 'credit rating.' Jo remarked, "Startups need time to generate actual sales and profits, but if low credit ratings exclude them, it raises the question of where they should receive help." He added, "I complained to the person in charge, but they just repeated that support cannot be given if the credit rating is low."
He questioned whether the designation as a national advanced strategic technology holding company means that technology should not be protected and nurtured for actual use. Jo stated, "They say they will reduce corporate tax, but in reality, most startups are in the red, so there’s no need to pay corporate tax in the first place."
The difficulty of finding research personnel remains a challenge. Jo thought that when he started the company as a professor, he would be able to recruit sufficient personnel from universities. However, reality was different. Jo stated, "Even though it’s a company founded by a professor, it is nearly impossible to bring in students from UNIST," adding, "We have four alumni working at our company, which is a relatively large number compared to other companies."
He pointed out that government support for businesses is overly focused on the moment of startup. He noted that there are no substantial support systems for companies that have entered the death valley before going public. Jo stated, "National support is concentrated at the front end, and proper support can only be received after going public," emphasizing that "Once initial support ends, deep tech companies must fend for themselves, making challenges significant."