Model Solution, a subsidiary of Korea & Company Group, has made its debut on the KOSDAQ market as the first prototype company in South Korea on the 7th. With steady growth, the company aims to leverage its KOSDAQ listing to propel itself forward as an innovative force in the manufacturing sector.

Established in 1993, Model Solution provides a total range of solutions—including design, prototyping, precision machining, mold making, injection, and contract manufacturing—in various high-value industries such as IT, communications, mobility, aerospace, robotics, and medical devices.

Beginning with a preliminary review in July, the company proceeded with the submission of the securities registration statement, demand forecasting for institutional investors, and subscriptions for general investors, following the formal process for its KOSDAQ listing. The demand forecasting held on September 19 and 20 saw a remarkable competition rate of 1,725.78 to 1. Following this, ordinary investor subscriptions on September 26 and 27 also recorded a competition rate of 1,514.8 to 1, leading to a substantial subscription amount of 5.1124 trillion won, swiftly earning the label of a ‘blue chip’ in the securities market. The final public offering price was set at 27,000 won per share, aiming for a market-friendly public offering, raising approximately 27 billion won through the IPO.

Model Solution possesses a one-stop production platform and system related to prototyping, implementing clients’ diverse ideas into high-quality and complete products. By adhering to its unique ‘7-day principle,’ where clients receive their final products just seven days after placing an order, along with its outstanding CMF (Color, Material, Finish) capabilities, the company has secured over 500 global partners, including Google, Amazon, Tesla, Samsung, and Hyundai.

After acquiring a 75% stake in Model Solution in 2018, Korea Tire & Technology (Korean Tire) has driven consistent growth, achieving an average operating profit margin of approximately 14% through last year. Last year, the company’s revenue and operating profit reached 61.1 billion won and 8.9 billion won, respectively, reflecting increases of 9.8% and 32.1% compared to 2020. The revenue for the first half of this year totaled 32.2 billion won.

With the KOSDAQ listing, Model Solution plans to secure future growth engines to make a ‘quantum leap’ as an innovative company in manufacturing. First, it will embark on developing its own hardware brand. An augmented reality display prototype developed last year is expected to go through pilot testing this year, with mass production and commercialization planned for next year.

Additionally, if Model Solution identifies innovative companies, Korea & Company will invest funds through an accelerating program to continuously secure future growth potential.

To expand into new business areas in line with these trends, Model Solution will establish operations in the Ojeong Industrial Complex in Bucheon, Gyeonggi Province. Aiming for an expansion in business areas, including the establishment of a ‘CM division’ to contract-manufacture various small-batch finished products, this initiative responds to the growing demand for mass production molds and injection from the expanding global partners.

Existing facilities in the Doksan-dong area of Geumcheon-gu, Seoul, will serve as prototype production hubs, while the integrated facility in Bucheon’s Ojeong Industrial Complex will be the center for QDM (molds and injection) and CM (contract manufacturing) operations, along with a US Silicon Valley sales corporation. The company is also moving forward with plans to open sales hubs in the Midwest of the US and Germany to expand its global market reach.

The newly expanded integrated plant in Bucheon has commenced operations for the new ‘CM Division’ since March, and the ‘Mold and Injection Division’ was relocated and is operational from July. By the first quarter of 2023, the company intends to complete the relocation of the ‘Precision Machining Division,’ which requires various materials and ultra-precision tolerances, with the expectation of creating organic synergies across different business units.

To stay ahead of industry trends, Model Solution will accelerate its business portfolio expansion through new business models like CMF design solutions and CM, while also developing innovative products such as industrial augmented reality (AR), and securing clients in new fields like medical devices, robotics, and aerospace.

Lee Sang-jin daedusj@autodiary.kr