[Game Changer] KTR to be 'bridgehead' for Korean companies eager to bolster exports

Industry

Published: 28 Nov. 2023, 16:59 Updated: 28 Nov. 2023, 18:58

[Game Changer] KTR to be 'bridgehead' for Korean companies eager to bolster exports

Korea Testing & Research Institute President Kim Hyun-cheol [KTR]

No matter how well Korean chips, EVs and batteries are made, a major hurdle still hinders their overseas expansion — obtaining an export certification.

Getting a Communaute Europeenne (CE) mark is a must to export goods to European countries. But the process is complicated and costs an arm and leg. This is where the Korea Testing & Research Institute (KTR) hopes to help.

“KTR recently opened a Global Certification Body [GCB] in Warsaw, Poland, to help Korean companies earn the mark easier and quicker to export their products to European countries,” said KTR President Kim Hyun-cheol during a recent interview with the Korea JoongAng Daily.

The GCB is just the latest effort by KTR to support companies' export expansion. Established in 1969, KTR is an internationally recognized testing and evaluation institution that has been designated and accredited by overseas governments and organizations.

It completes over 470,000 tests and certification requests per year for more than 30,000 businesses. It has formed strategic partnerships with 216 institutions from 45 countries.

“KTR aims to serve as a bridgehead for Korean companies to help them surmount barriers and reduce trial and error to better export their goods overseas,” Kim said.

Below are edited excerpts from the interview.

Korea Testing & Research Institute President Kim Hyun-cheol [KTR]

Q. What exactly is the GCB and what is its role?

A. KTR established GCB, an agency that directly grants Europe’s CE mark, in Warsaw, Poland.

To sell products in European countries, getting a CE mark is mandatory to represent a manufacturer’s declaration that products comply with the EU’s regulations. And under the rule, that body must be located in Europe.

Until now, Korean testing agencies have been granting CE marks in cooperation with agencies in Europe, which requires more time and additional costs for Korean companies.

This is why KTR formed GCB in Poland. If KTR could directly offer CE marks, we expect companies requiring CE marks can shorten their process time by an average of one or two months and cut costs by 20 percent.

Upon its establishment, GCB aims to earn its right to offer a CE mark to equipment in less than six months and expand its scope to various sectors including electronics, batteries, semiconductors and automobiles.

GCB hopes to work as a bridgehead for Korean companies that are struggling with complicated approval regulations. KTR will help them reduce trial and error and export their goods in easier and quicker ways. GCB, now starts as an agency to help Korean companies, but aims to grow to be a global certification agency.

It's been a year since you were appointed as the president. What was your major focus?

KTR went through big changes over the past year such as a reorganization and reshuffle. We formed a new planning division and a task force for future businesses such as batteries. KTR has been leading a 40 billion won ($31 million) BaaS (Battery as a Service) business and has been selected by the government to build a demonstration center in Gumi, North Gyeongsang, a first of its kind in Korea. We're also preparing more businesses in hydrogen, EVs and biopharmaceuticals.

The past year was an important period for us to expand our partnerships with foreign agencies. KTR inked agreements with a total of 29 agencies from 17 countries including Japan, China, Poland, Turkey, Indonesia, Vietnam, Belgium and the United Arab Emirates over the past year.

Building the GCB in Poland was one of them.

KTR headquarters in Gwacheon, Gyeonggi [KTR]

Poland is where many Korean battery makers have manufacturing plants. Do you have any specific aids for them?

Many local companies have their plants in Poland including battery makers like LG Energy Solution and materials firms like SK IE Technology. GCB will expand support for them to acquire approvals related to safety and function evaluation from the very beginning to the end, and offer related know-how in order to help them expand business in Europe.

Also, the EU passed a new battery law in June, which takes effect in phases starting in 2024. KTR’s GCB will offer various battery services like evaluating battery life expectancy and data about recycled batteries.

The battery is one of Korea’s major growth engines, but has so many issues to tackle such as high fire risk. Responses to such crises like the U.S. Inflation Reduction Act and Europe’s Criminal Raw Materials Act are essential as well. KTR also focuses on systematic responses. We are currently leading the revision of global standards including the International Electrotechnical Commission’s TC120 and SC 21A.

Countries like the United States and China are imposing stricter rules to protect their own companies. What other help can Korean companies expect from the KTR?

KTR is in partnership with 216 institutions from 45 countries across the world including global names like the United Nations and International Committee for Electrical and Electrotechnical Equipment. KTR’s examination results are 100 percent recognized in those countries.

KTR also offers certification for the Japanese Industrial Standard, COSmetic Organic Standard and China National Accreditation Service for Conformity Assessment. Europe’s MDR is also a specialized service for KTR.

We can directly help companies through our six overseas offices in Germany, Mexico, Vietnam and China.

KTR is also working hard to expand the Korean certification system. We built the system in Paraguay in August and agreed to deliver our technology to the government. We are in talks with some Southeast Asian countries and African countries for further expansion. With the global network, KTR will be a companion of Korean companies to help their business expand and solve economic uncertainties.

What is your future vision and goal?

AI and big data are the two key factors in any industry scene and KTR is no exception. KTR endeavors to apply those technologies to our certification service. We are building a system that more thoroughly selects and analyzes clients’ demands and builds infrastructure more effectively.

In terms of business, we are codeveloping a new way of analyzing test certification using AI and big data with the Incheon-based Bioinformatics and Molecular Design Research Center.

KTR is exerting all efforts to offer customized test and certification services and help companies strengthen their technological competitiveness.

BY SARAH CHEA [chea.sarah@joongang.co.kr]