Road Show

June 19, 2019

Windsor HotelTaichung, Taiwan

KOMMA

by Charles Park

General Manager of KOMMA

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Korea-Taiwan Strategic Alliance

In Machine Tool Arena

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CONTENTS

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General Information

- Information on Korea

- Korean Economy Outlook

Korean Machine Tool Industry

- 2018 MT trend : Production, Trade, Consumption

- Outlook of 2018 Korean MT Industry

Korea-Taiwan Machine Tool Trades

Success Possibility of Taiwanese MT Industry

- Machine Tools & Components Demand in Korea

SIMTOS, Best Market Place

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Korea at a glance

Location: Strategically located at the crossroads of Northeast Asia.

Korea lies between Japan, the Russian Far East and China.

Population: 51.8 million people (2019)

GDP : US$32,046/person (29th, IMF, ‘18)

2018 Trade Performance

- Exports: US$604 bill. / Imports: US$535 bill. (Balance: US $ 63 bill. surplus)

World Leading Korean IndustriesShipbuilding (1st), Mobile (2nd), Automotive (7th), Semiconductor (2nd ), Machine Tools (6th )

Korean Brands: SAMSUNG, LG, Hyundai Motors, KIA Motors, POSCO

Republic of Korea, 大韓民國, 한국Area: 99,720㎢ (South Korea Only)

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91,790

Consumption

48,809

Imports

51,615

Exports

World Standing of MT industry in 2018

① China 23,460

② Germany 14,987

③ Japan 14,794

④ Italy 7,233

⑤ USA 6,220

⑥ KOREA 5,287

⑦ Taiwan 4,700

① Germany 10,369

② Japan 9,229

③ China 4,081

④ Italy 3,873

⑤ Taiwan 3,602

⑥ Switz. 3,364

⑧ KOREA 2,611

94,595

① China 9,460

② USA 6,298

③ Germany 3,496

④ Mexico 2,252

⑤ Italy 1,855

⑯ Taiwan 997

① China 28,839

② USA 9,579

③ Germany 8,113

④ Japan 6,538

⑤ Italy 5,215

⑥ KOREA 3,941

⑨ Taiwan 2,095

Production

⑩ KOREA 1,265

* Source: Gardeners Publication Inc.(2018)

(Values in Millions Of US Dollars)

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Korean Machine Tool Production

0.0

1,000.0

2,000.0

3,000.0

4,000.0

5,000.0

6,000.0

7,000.0

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

5,287 mill USD, Increase (3.4%) in 2017

(Values in Millions Of US Dollars)

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Korean Machine Tool Export

US$2,615 mill., the largest Volume in history (+11.2%)

Europe exports grow 33.6%(Y-O-Y) in 2018 driven by the automobile,ICT sectors, etcUSA exports Grow 35.0%(Y-O-Y) in 2018 driven by the automobile,engergy including oil & gas, etcExports Increase: Germany(38.3%), USA(35.0%), India(181.5%)

INDEX ’12 ‘13 ‘14 ’15 ‘16 ‘17 ‘18

Exports

(USD million) 2,551 2,216 2,236 2,342 2,020 2,352 2,615

Y-O-Y(%) 10.9 -13.1 0.9 4.7 -14.2 16.4 11.2

Major Exported Korean Machine Tool Products [Y-O-Y (%)]

NC lathes (49.8%), Machining Centers (43.9%), Presses (16.4%)

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Korean Machine Tool Export by Country

No. Country 2013 2014 2015 2016 20172018

amount Y-O-Y(%)

1 China 584.9 589.9 567.3 596 582.6 490.8 -15.8

2 USA 455.2 417.1 374.2 253.7 353.7 477.4 +35.0

3 Vietnam 65 99.3 228.9 231.6 355.1 272.5 -23.3

4 Germany 144.3 171.6 152 146.7 176.9 244.6 +38.3

5 India 135.6 95.9 59.2 69.9 86.5 243.6 +181.5

12 Taiwan 14.6 17.4 35.9 22.8 24.0 28.9 +20.4

(Values in Millions Of US Dollars)

* Source : Korea Customs Service

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Korean Machine Tool Import

US$1,264 mill., decrease of 5.6% from 2017

Facility investment in Korea continues downward trend

INDEX ’12 ‘13 ‘14 ’15 ‘16 ‘17 ‘18

Exports

(USD million) 1,492 1,492 1,386 1,496 1,214 1,341 1,264

Y-O-Y(%) -16.6 - -7.1 7.9 -18.9 10.5 -5.6

Major Imported Korean Machine Tool Products [Ratio]

NC lathes (7.6%), Machining Centers (16.0%), Bending machines (6.3%),

NC Grinding machines (9.5%), Cutting Tool & Components (45.1%)

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Major Exporting Countries to Korea

* Source: Korea Customs Service

Index Japan Germany China Switzerland Taiwan Total

Value

(US$ Mill.)540.7 173.8 136.0 108.8 81.1 1,264

Ratio (%) 42.8 13.8 10.8 8.6 6.4 100

(2017) (41.5%) (14.5%) (8.1%) (8.9%) (8.1%) 1,341

(2016) (45.7%) (17.0%) (7.7%) (6.8%) (6.3%) 1,214

Y-O-Y -2.9% -10.9% 24.8% -9.3% -25.6% -14.0%

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2019 Outlook of End-User Industries

• Shipbuilding orders that from shipping

companies at 2017 began to be

realized in 2019

• Expect a big recovery in 2019

• Cause of Expansion of electric vehicles and installation of energy storage system . Domestic sales and exports grew rapidly in 2018

• Expansion of secondary battery production line and R & D investment

• Electronic industry is likely to shrink due to

global economic slow down

• Demand is expected to increase due to

the development of new industry related

to the 4th industrial revolution

Shipbuilding

• Increase the production due to

releasing of 5G network, SSD, etc

IT ElectronicIT

Semi-ConductorSecondary battery

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2019 Korean Machine Tool Industry Outlook

Production: $5,340 million, +1.0% from 2018

• Production is expected to increase slightly due to increased exports,

• Reduced investment due to delay in demand industry recovery

• Expansion facility investment by major companies and expansion of government

infrastructure investment

- Samsung($100 billion Facility investment, ~2021), SK Hynix($12 billion, ~2020), etc

• Demand for automobile industry shrinking

• Shipbuilding, semiconductors and displays are expected to invest, but decline

due to the contraction of the automobile industry

Import: $1,240 million, -2.0% from 2018

• Economic growth to slow due to monetary tightening in the US and Europe

• Exports of machine tools to increase in China, India, and China as demand for

automobiles, semiconductors, and rechargeable batteries increase

Export: $2,689 million, +3.0% from 2018

* Source: KOMMA(Korea Machine Tool Manufacturers’ Association)

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Korea-Taiwan Machine Tool Trade

* Source: Gardeners Publication Inc.(2018) / Korea Customs Service(Value: US$ million)

Taiwan export Machine Tools to Korea (2018)

$81.1mil. (-25.6%), Top 5th Exporting Country

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Machine Tool Export from Taiwan to Korea

(Values in Thousands Of US Dollars)

Machine Type 2016 2017 2018

NC Metal Cutting 49,725 71,684 53,805

NC Lathes 696 729 585

NC Machining Center 41,204 63,654 42,724

NC Grinding Machines 2,772 3,137 5,201

NC E.D.M 2,154 1,625 1,454

Non-NC Metal Cutting 15,295 21,359 17,136

Lathes 3,030 4,474 3,977

Grinding Machines 2,688 4,293 3,165

E.D.M 1,868 1,426 861

Sawing Machines 5,817 8,605 7,289

Metal Forming 11,885 15,975 10,179

Presses 1,744 1,455 804

Bending Machine 3,756 3,647 2,929

Total 76,904 109,017 81,120

Y-O-Y (%) -16.4% 41.8% -25.6%

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Machine Tool Demand in Korea

5-axis machining centers

Multitasking machines,

High performance grinding Machines

Machining centers, CNC lathes,

Grinding machines, Presses,

Laser processing machines

Special purpose machines

Milling machines, Lathes

Sawing machines, Shearing machines

Polishing machines,

Forging machines

Germany, Japan,

Switzerland, USA

Germany, Italy,

Japan, China, USA,

Taiwan, Spain,

Switzerland

China, India,

Taiwan, Thailand

Russia

Import $430, Consumption $700

Import $920, Consumption $3,300

Import $300, Consumption $700

(Values in Millions Of US Dollars)

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Korean Machine Tool Component Demand

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Manufacture

on their own

Purchase

Products

Outsourcing

Manufacture

Machine Tool

Components

Ratio(%)Import from

Own Korea Foreign

Structures &

Castings33 54 13 China

CNC devices - 12 88 Japan, Germany

Axis 16 18 66 Japan, Germany, Switzerland

Ball screws 6 29 76 Taiwan, Japan, Germany

LM Guide - 19 81 Taiwan, Japan, Germany

Slide covers - 82 18 Taiwan, Japan

ATC 14 50 36 Japan, Taiwan

APC 14 73 13 Japan, Taiwan

Rotary tables 13 27 60 India, Taiwan, USA, Germany

Tables 44 37 19 Taiwan, Japan

Turret tool posts 33 60 7 India, Italy, Taiwan, Japan

Couplings - 33 67 Taiwan, Japan

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Imported Products by Country (2018)

Classification No. 1 No. 2 No. 3 No. 4 No. 5

LathesValue ($1,000)

Japan

(5,882)

Taiwan

(3,977)

China

(2,112)

Germany

(2,034)

Italy

(1,270)

Ratio (%) 35.2 23.8 12.6 12.2 7.6

Machining

Centers

Value ($1,000)Japan

(98,972)

Taiwan

(42,724)

Germany

(42,106)

USA

(9,210)

China

(4,522)

Ratio (%) 49.0 21.2 20.9 4.6 2.2

Sawing

Machines

Value ($1,000)Japan

(12,788)

Taiwan

(7,289)

China

(5,917)

Italy

(2,044)

Germany

(1,408)

Ratio (%) 37.0 21.1 17.1 5.9 4.1

Grinding

Machines

Value ($1,000)Japan

(24,301)

Switzerland

(4,658)

Taiwan

(3,165)

USA

(1,640)

China

(1,614)

Ratio (%) 62.2 11.9 8.1 4.2 4.1

* Source: Korea Customs Service

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the Near-by Market Place, Korea

World’s Top 6th Machine Tool Consumer & 10th Importer

- Korea is well know Machine Tool Manufacturing Country.

However, Machine Tool Consumption reaches US$ 3.9 bill.

Competitiveness of end-user industries is decided by Machine Tool Manufacturing Technologies

- Thriving automotive industry leads demand (Hyundai, KIA Motors)

- Mobile industry: Display, Nanotechnology (Samsung, LG)

- Components for general machinery & automotive

Advantage of Geographical Closeness from Taiwan

SIMTOS is the optimal market place for Taiwanese machine

tool manufacturers as well as end-users held in Korea,

The nearest foreign market place from Taiwan!

All about SIMTOS

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Must See Show : SIMTOS

Global Pavilion : International MT Associations - China, USA, Japan, Taiwan, Turkey, Russia, Swiss, Germany 11 nations 14 associations

World’s Top Machine Tool Show- Foreign Exhibitors: 34 nations, 848 companies (69.4% of total exhibitors)

- National Pavilion: Taiwan, China, Italy, Germany, Japan, Switzerland, Turkey

Meeting Place for Machine Tool End Users & Manufacturers - Returning Exhibitors: 82.7%

- Re-Visiting Buyers: 80.5% Metal Processing

(19.2%)

Industrial Machinery

(13.9%)

General Manufacturing

(12.4%)Automobiles

(11.8%)Electronics/Household

Electrical Appliances

(7.9%)

Aerospace(3.9%)

Medical(2.4%)

Others

(28.5%)

”The foot of the candles is dark.”- Manufacturers in SIMTOS exhibitors: 42.3%

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SIMTOS Standing

Upgrade to World Leading Machine Tool Show

Index SIMTOS’18 Korea Machinery Fair ’17 Busan Machinery Fair ’17

Venue KINTEX KINTEX BEXCO

Space (g) 102,431㎡ 44,370㎡ 33,228㎡

No. of

Exhibitors1,222 574 417

No. of Visitors 103,726 57,277명 27,520

Index EMO’17 IMTS(‘18) CIMT(‘19) SIMTOS(’18) JIMTOF(’18) TIMTOS(‘19)

Space (g) 286,000㎡ 250,000㎡ 131,000㎡ 102,431㎡ 99,000㎡ 100,000㎡

No. of

Exhibitors2,226 2,563 1,700 1,222 969 1,230

No. of

Visitors128,966 129,415 139,079 103,726 147,602 53,777

* source :AKEI

Korean Brand Show: The Largest and Most Satisfying show

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SIMTOS Standing

35 Nations Join World – Class Machine Tool Show in Korea

- No. of Foreign Exhibitors : 848 (‘18)〉800(‘16)〉553(‘14)〉308(‘12)〉275(‘10)

CountryNo. of

Exhibitors Major Companies

STIMTOS

Partner

Korea 374 Hwacheon, Doosan Machine Tools, Hyundai-Wia, SMEC

Germany 211 Trumpf, Dmg Mori, Siemens, Cal Zeiss, Excron ○

Japan 151 Fanuc, Amada, Mazak, Mitsubishi, Mitutoyo, Okuma, Makino

China 96 Monos, Hans laser, Dne, Leiming, Penta, Vertex, GSK ○

Taiwan 83Kao Fong, HIWIN, Buffalo, Hartford, PMI, Vision Wide,

APEC○

U.S.A. 65 Hass, Hexagon Metrology, 3D Systems, Stratasys, Omax

Italy 52 Marposs, Salvagnini, FPT, BLM ADIGE, FICEP ○

Switzerland 65 Bystronic, Tornos, Erowa, Ibag, Blaser Swisslube ○

SIMTOS 2018 attracted a large number of package visitors

- From major Korean firms, including Hyundai Motor and Samsung Electronics.

Find All Korean Buyers Here, SIMTOS

28,918

2004

54,434

2006

64,513

2008

70,508

2010

111,273

2012

100,351

2014

98,587

2016 2018

103,726

SIMTOS Membership

Consisting of 149,865 members working in Machine Tool End User industries.

Membership DB is updated in regular to deliver Information timely

It enable to send Preview as well as Admission Badges in advance to visitors

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Title SIMTOS 2020(The 19th 2020 Seoul International Manufacturing Technology Show)

Date March. 31(Tue) ~ Apr. 4(Sat), 2020 [5days]

Venue KINTEX 1, 2(102,431㎡)

Exhibitors 35 nations, 1,300 companies 6,000 booths

Visitors 100,000(Foreign Buyers 5,000)

SIMTOS 2020 Fact Sheet

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SIMTOS covers KINTEX only in Korea

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『SIMTOS 2020 Master plan』 approved by KOMMA Board Meeting

SIMTOS 2020 Contract with SIMTOS Partners

SIMTOS 2020 Official Website & Information Center Opened

SIMTOS 2020 Application Started

* As of June 14, ’19 : 599 companies 5,863 booths* Exhibitors : Hwacheon, Doosan, Hyundai-Wia, DMG MORI,

Trump, Siemens, Bystronics, Marposs etc.

Mar., 2019

Dec., 2019

SIMTOS 2020, Now

Seoul(April, 4),

Southern Area (Apr, 11),

Seoul (Apr,16),

Seoul (May 29)

Taiwan(Taichung, June),

China(Jinan & Wuxi, July)

India(Chennai, August)Korea Overseas

SIMTOS 2020 Promotion Road Show

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SIMTOS 2020, Now

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SIMTOS 2020, Now

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SIMTOS 2020, Now

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SIMTOS 2020, Now

SIMTOS 2020 Booth Allocation : End of Aug., 2019- Booth Allocation will be on air live on SIMTOS website -

The No. of Applications Hit Record High 97.7% With 5,863 Booths

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From Attracting exhibitors

Switching to Attracting visitors and stable operation!

SIMTOS 2020, Targeting your optimal customers

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Reorganization to expand Korea and overseas buyers: 2 →3 team

Budget ManagementInvite buyer

Attracting exhibitorsManaging exhibitors

On-site operationNext year project studies

(7 Peoples)

ConferenceExhibition promotion

Computer development Computer operationManage promotion

(5 Peoples)

Building SIMTOS Membership(To attract more visitor)

Customer Center OperationsNiche business management

(8 Peoples)

MEMBERSHIP(New)

BUYER(Exhibition Management)

CONFERENCE(Exhibition Promotion)

SIMTOS Secretariat

SIMTOS 2020, Targeting your optimal customers

Extra Budget

of U$1.3Mill.

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SIMTOS 2020, Targeting your optimal customers

SIMTOS Customer Center Operations (July, ’19.~): Expansion of visit to buyers and enhancement of customer service

- After surveying manufacturing companies, inducing new subscription to SIMTOS membership

▸ Maintain existing membership and attract new membership to expand

domestic visitors

* Automobile, general machinery, aviation, IT and semiconductor, steel and nonferrous metal, mold, shipbuilding etc.

149,865

Existing

11,000+a

New

MEMBERSHIP

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SIMTOS 2020, Targeting your optimal customers

TM Center

Call Center (1599-2721)

CRM Center

Opens in Mar., ‘20 All the information for visiting

are provided : transportation, shuttle bus,

services for visitors

Opens in Jul., ‘19 Membership/Pre-registrant Management

Package Visitor

Computation program development

Opens in Aug., ‘19 Update type of business, interest

products, and the person in charge

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SIMTOS 2020, Targeting your optimal customers

365 days Real-time Matchmaking4U(On-site meeting via On/Off line matching)

“SIMTOS as Your Business Partner”

Preparing a full-cycle marketing support program

Operating on-line matching program (http://b2b.simtos.org)

Holding advance investigation about marketing information of exhibitors and

buyers for improving matching success rate

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SIMTOS 2020, Targeting your optimal customers

Marketing

Information

Registration

Recommend

Automatically

Optimal Buyers

Pre-Matching

Online

(b2b.simtos.org)

On-site

Meeting

Marketing Information?

Company profile, Industry fields, Major customers, Exhibit products(505 product categories)

How to Join Matchmaking4U

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Provide specific issue to production and manufacturingOnly SIMTOS can provide

▸ Hold Various conference programs by topic(60 sessions)

- Digital Machine Tools, Smart Manufacturing, Automation, Robots, Digital Twin, Engineering Software

▸ Convergence conference

- Production Manufacturing Technology + Demand Industry Trend + Business

▸ Invitation of global leaders and experts (Keynote Speaker etc.)

▸ Provide Networking opportunities

▸ Exhibitor opportunities: Announcement or Visit

- 3D Printing, Mold, Laser, Welding, Cutting Tool, Measuring Equipment, Smart Sensor etc.

Hold Int’l Production Manufacturing Innovation Conference

SIMTOS 2020, Targeting your optimal customers

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SIMTOS 2020 Apply for Space

ClassificationGeneral Application Late

ApplicationA B

Period ~ June 30 2019 ~ Oct. 30 2019 Nov. 1. ’19 ~

Core Exhibits US$2,322 US$3,069 US$3,528

Strategic Exhibits US$1,962 US$2,538 US$2,916

Discount 34.2% 13.0% 0%

(Unit: 1booth, 3m× 3m=9㎡)

Core Items : Metal cutting machines, Cutting tools, Measuring Instrument, Parts,

Cutting-off machines(Laser/Water jet), CAD/CAM

Strategic Items : Welding machines, Cutting-off machines(Plasma), Metal forming machines,

Sawing machines, Robotics＆Automation, Electric Power tools, Diamond grinding tools,

Finishing-related facilities, Diamond tools, Materials, Software

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SEE YOU IN KOREA!www.simtos.org