the way of Industrial South Korea
The hard metal alloy cutting tools industry is a typical capital intensive industry, which is one of the basic industries for making various machines and processing raw materials for almost all industries, such as automobile, machinery, ship building, power, railway, and aviation.
hard metal alloy cutting tools is an industry with limited access to newcomers or the competitors’ chances to take over are very low. The Japanese hard metal alloy cutting tools dominated most of the South Korean market, and the people thought Tungaloy, which was one of the trademarks of Japanese hard metal alloy cutting tools, to be a name of the general type of metal-grinding tools.
But, the hard metal alloy cutting tools were the basis of the automobile and mechanical industries They were essential for the economy of the country, and someone had to do it. At that time, Korloy walked the unknown road of hard metal alloy cutting tools in South Korea all by itself.
with Sumitomo, Japan
In February 1970, the company entered into an official joint venture and technical affliation agreement with Sumitomo. The equipment that was provided by Sumitomo for the first time was one forming cutter, one vacuum sintering even, one universal/flat grinder, and one high frequency oven. After that, Korloy immediately embarked on the company’s primary purpose, to stabilize the quality.
The venture with the highly renowned sumitomo brand was immediately profitable in the overpriced import market, allowing the company to offer the same products at greatly reduced prices.
Korloy moved its factory to Cheongju, in order to meet the increasing demand, in May 1974. The complex included a tennis court and playground wide enough for volleyballs and soccer, whichwere the pride of the company.
After moving to the Cheongju Factory, President Sung-Han Yim re-invested most of the profits of the company to buy new equipment to imcrease productivity. With newer equipment, the company completed its modern production systems, resulting in the export of SPT to Sumitomo.