Current Professor and Founder of SNU, Global No.1 LCD Measuring Equipment

Director of R&D Strategy Planning Committee, 'CTO of the State', Chairman of the Young Hope Foundation, Korea Industrial Technology Protection Association
Medium-term job creation 90%, "Mid-career global innovation capability support"

Heui Jae Pahk, Professor at the Seoul National University's School of Mechanical and Aerospace Engineering, emphasized that creating youth jobs by nurturing and growing SMEs through the support of SMEs' global and innovation capacities can be done naturally. (Photo by Shin Tae-hyun)

[Journalist Kang Kyung Rae from EDaily] "We need to hurry up with SMEs' global capabilities and innovation capabilities in preparation for the 4th industry era. To do this, we need innovative activities that link SMEs, universities and government-funded research institutions. The government should play a role of  'one-stop' in supporting the necessary personnel, policy, finance, research and development (R&D) and deregulation.

Heui Jae Pahk (56), a professor at the department of mechanical and aerospace engineering at Seoul National University, said, "The government should actively support the small and medium-sized enterprises to create products differentiated and advance into the global market. "When we implement a policy to support SMEs who are responsible for their jobs, they will be poured out like jobs."

Professor Pahk has been working as an entrepreneur for nearly 20 years, establishing Precision, a venture company of Seoul National University Laboratory, SNU (080000)     (4,695원 105 +2.29%). From 2013 to the beginning of this year, he also served as deputy chief of the R&D Strategic Planning Department of the Ministry of Industry and Commerce, called the chief technology officer (CTO) for four years. He has also been involved in a variety of activities outside the university, including the president of the Young Hope Foundation and the president of the Korea Industrial Technology Association.

In addition to professors, I also met with Pahk Professor Pahk, who worked as an entrepreneur, government head, chief, and group leader, at Seoul National University on October 10, to listen to various opinions on policies to foster SMEs and the creation of jobs.

◇SNU No.1 Venture company SNUYU, global leader in LCD measuring equipment

"At the time of the 1998 financial crisis, I felt shame as a professor and an elite engineer. The financial crisis was caused by a situation in which imports were higher than exports. As a professor, it is important to nurture my college degree, but I thought it would be a matter of earning a dollar for a dollar as an elite engineer when the country was in the position of a financial crisis.”

SNU, founded in 1998 by Professor Pahk and college students, made his first achievement the following year by exporting precision measurement sensors to Volvo affiliates in Sweden. He picked up one dollar out of the $ 10,000 he earned at the time, which is now in his room.

 

Since then, he has been in the business of liquid crystal display (LCD) measurement equipment, and SNU is currently the number one global player in this field. SNU was listed on the KOSDAQ in 2005 and won a succession of prizes of $ 1 million, $ 5 million, $ 30 million, and $ 70 million. The company has grown to become globally recognized with around 300 employees and sales of around 100 billion won.
 

Professor Pahk was not satisfied with LCD measurement equipment 1 and challenged the field of Organic Light Emitting Diode (OLED) Organic Deposition Equipment (EVP). The organic deposition equipment functions to precisely coat the fluorescent material so that the OLED can emit self-luminous light. Organic deposition equipment, which has generated around 2 trillion won per year, was dominated by Japanese makers such as Tokiwa and Albak

"Business is like living life. Yesterday's success does not guarantee today's success. It is the fate of the entrepreneur to constantly discover and challenge the growth engine. While the LCD has already reached maturity after the growth phase, the OLED market is still growing. Therefore, we decided to challenge the field of deposition equipment that depends on 100% of OLED equipment. "

Professor Pahk poured billions of dollars in LCD measuring equipment into OLED organic deposition equipment R&D. As a result, SNU signed a contract in April 2013 to supply organic deposition equipment to BOE, the largest display maker in China, for a total of 60.3 billion won. It was the first time that the oligopoly of Japanese companies was broken. In the same year, SNU signed a contract with Visionox in China to supply the same equipment for a total of 48.7 billion won. Professor Pahk has also built a monument with the name of more than 300 employees at the entrance to the main office of ASNE in Chungnam, commemorating the day of shipment of organic deposition equipment to BOE.

He made a big decision at the end of last year when he was winning the OLED organic deposition equipment following LCD measuring equipment. He sold 34,432 thousand shares (13.77%) out of 512,7807 shares (20.51%) owned by his company, along with management rights to SFA. In particular, the stake in SNU was sold at 3815 won, 10% lower than the previous closing price of 4240 won. There was not even a management right premium, which is 20 ~ 30% of the amount of the sale.

"As we compete with OLED organic deposition equipment in the global market, we are facing economies of scale in many areas such as cost competitiveness, purchasing power, and financing ability compared with Japanese competitors. We have experience in source technology and delivery, so we decided that if we meet a good partner, we can draw bigger picture. In order to realize this, the company sold its stake to SFA, the largest equipment company in Korea. I did not consider the premium of management rights at all because it was not the purpose of the individual. "

Pahk, who has completed one cycle as an entrepreneur from start-ups to IPO and merger and acquisition, said, "I would like to be a model that domestic companies can refer to." While overseas companies such as the US, Europe, and Japan are increasing their grip on the global market through M&A, there is still a negative perception of M&A in Korea, and entrepreneurs are also not active in M ​&As. "M&A must be included in the roadmap for companies to gain greater competitiveness and sustain growth in larger markets. Entrepreneurs should also look at M&A with a macro growth strategy and financial support, deregulation and tax benefits to stimulate M&A at the national level. "

He also did not forget to advise the Ministry of Small and Medium-sized Venture Businesses, "After the current government was launched, we have decided to create a first job committee and then a small venture company, which is a very desirable direction. The biggest issue in our society is youth employment, and 90% of jobs come from small and medium enterprises. In order for SMEs to accept young people, it is necessary to grow in overseas markets with global and innovative capabilities. If the government concentrates on securing the global and innovation capabilities of SMEs, the problem of jobs will be solved naturally. "

◇Heui Jae Pahk, a professor of mechanical and aerospace engineering at Seoul National University

△Born in Gimpo, Gyeonggi Province △ Woo Shin High School· Dept. of Mechanical Design, Seoul National University △ Doctor of Mechanical Engineering, University of Manchester, UK

△Professor of Industrial Engineering at POSTECH △ Professor of Mechanical and Aerospace Engineering at Seoul National University △ Representative Director at SNU Precision △ Director of R&D Strategic Planning Department at the Ministry of Commerce, Industry and Energy △ Director of the Young Hope Foundation △ President of Korea Industrial Technology Protection Association

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