• Emerging as a Global Hidden Champion in Forging through Smart Factory Transformation

•  Achieving Both Quality and Productivity Improvements via Robotic Process Optimization

Due to a downturn in demand industries, rising minimum wages, and reduced working hours, Korea’s root industry sector has faced increasing challenges. A major breakthrough that is gaining attention is the adoption of smart factories. As the Fourth Industrial Revolution unfolds, traditional manufacturing methods can no longer secure competitiveness, and drastic productivity improvements are essential to overcoming the worsening business environment.

Sewon Metal Co., Ltd., led by CEO Lee Jung-hee, is a specialized hot forging company at the forefront of smart factory implementation within Korea’s forging industry.

The company’s main products include hot forged parts for automotive applications such as drivetrain, engine, hydraulic, and fuel system components, as well as industrial flanges and engine gears for agricultural machinery, and timing chains for ship engines. Among these, forged pistons are a core strategic component, gaining increasing global market share and recognition for their technological excellence.

While many root technology companies rely on the domestic market, Sewon Metal derives over 60% of its total revenue from exports. The remaining 30–40% comes from Hyundai·Kia Motors and other clients. Revenue is roughly split evenly between commercial vehicle and transport machinery parts. The company experienced more than 10% annual growth for five consecutive years, fueled by the world's first patented mold technology for piston skirt production obtained in 2008. Sales reached KRW 46 billion in 2014 and KRW 53 billion in 2015.

However, provisional sales dropped sharply to KRW 41.1 billion last year due to the global market slump in transport machinery and difficulties faced by Korean OEMs in China.

In response to falling sales and the need for future growth, the company joined the Global Hidden Champion Program in 2015. In the first year, it invested KRW 20 million in marketing development, followed by process improvement efforts in the second year.

To strengthen price competitiveness, Sewon Metal initially tried to optimize robotic equipment in which it had already invested billions of won. However, unsatisfactory results led to the “Robot System Process Optimization Project,” launched in September of the previous year with a total budget of KRW 14.5 million. Through consulting, the company analyzed production line issues, set goals for productivity and quality improvements, and standardized the process using checklists and work instructions.

By enhancing mold holders and robot grippers (JIGs), the company succeeded in optimizing its robotic systems. Originally targeting a 20% productivity increase and 10% quality improvement over manual lines, the project exceeded expectations with a 110% productivity increase and 96.8% quality improvement.

Sewon Metal plans to build on this success to further enhance its price competitiveness and fend off growing threats from Chinese and Vietnamese firms by expanding smart factory practices.

CEO Lee stated, “We achieved significant results in the second year of the Global Hidden Champion Program, and it was a valuable opportunity to realize the necessity of smart factory adoption. It’s no longer a matter of choice but of survival. We aim to reach 40% smart factory implementation this year and 70% within a few years.”

With its competitive pricing achieved through smart factory innovation, Sewon Metal is also preparing new revenue streams.

Although the company acquired a patent in 2013 for a mold device to produce pistons for 1-ton vehicles, it had yet to commercialize it. Now, it plans to develop and mass-produce passenger car engine pistons.

In addition, the company is working to expand its production scope from steel to non-ferrous forging products. Sewon Metal invests 3.5–3.8% of its total revenue into R&D for future growth and improved product quality.

CEO Lee emphasized, “Along with smart factory implementation and two new growth items, we’re closely watching how the OEM market for commercial and passenger vehicles responds to the rise of EVs and eco-friendly cars. The auto industry is in transition, and we need to stay agile and alert. Survival depends on speed.”

Founded in November 1995, Sewon Metal relocated its plant to Juchon-myeon, Gimhae in 2002 and established its in-house research center in 2005. The patented piston skirt mold technology obtained in 2008 served as a catalyst for rapid growth.

The company holds numerous certifications including SQ from Hyundai-Kia Motors, venture enterprise status, ISO, classification society approvals, and INNO-BIZ designation. It also holds patents for piston products used in 1-ton vehicles and forged vibration-damping structures. Sewon Metal was designated as a Root Technology Specialist Company and a Regional Hidden Champion in 2005.

With a strong focus on internal stability, quality management, and customer satisfaction, Sewon Metal continues to invest in R&D, aiming to produce high value-added, competitive products that drive future growth.

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