At the end of 2016, the Ministry of Trade, Industry and Energy of South Korea, together with the Korea Trade-Investment Promotion Agency (KOTRA), held the deliberation committee for the development of "World Class Products" (see note). In 2016, 739 products and 824 companies were recognized, an increase of 59 products and 60 companies year-on-year; 93 new products and 106 companies were newly recognized, of which 78 were small and medium-sized enterprises, accounting for 73.6%.

Note:

In order to ensure the diversification, upgrading, and future export momentum of export varieties, South Korea launched the certification of "World Class Products" in 2001, hosted by the Ministry of Trade, Industry and Energy and managed by KOTRA, with relevant evaluation work conducted annually. The certification aims to cultivate world-class enterprises leading the international market and targets enterprises and products with technological innovation capabilities.

"World Class Products" are divided into "Current World Class Products" and "Next-Generation World Class Products". The former must meet the condition of "currently having a global market share of 5% or more and ranking within the top five", while the latter refers to "products expected to achieve a global market share in the top five within the next seven years".

The selection criteria for "World Class Products" are very strict. Specifically, domestic products must rank within the top five in global market share, have a global market export scale of over $50 million, an export scale of over $5 million, and a global market share of over 10% to be recognized as "Current World Class Products", and the enterprises producing the relevant products are recognized as "World Class Product" manufacturers. "Next-Generation World Class Products" refer to products that rank in the top three in export performance among domestic manufacturers of similar products and are expected to achieve a global market share in the top five within the next seven years.

Hyundai Steel

Far ahead in the number of "World Class Products"

In the South Korean steel industry, Hyundai Steel is the leader in "World Class Products". Six of its products have been listed as "World Class Products" for 12 consecutive years, and the company has also been honored with the title of "World Class Product" manufacturer, marking that its technological strength and product quality have received authoritative certification.

In 2001, Hyundai Steel's H-beams and high-speed steel rolls (HSSROLL) for hot rolling were first rated as "World Class Products"; in 2005, four major steel products including tracks, unequal-leg unequal-thickness angles, sheet piles, and stern cast steel parts were rated as "World Class Products". Thus, the company had six "World Class Products". In 2015, Hyundai Steel's stern cast steel parts were dropped from the list, but oil well pipes were included for the first time. As a result, the company still has six "World Class Products".

Tracks are high-strength precision components specially used for heavy equipment such as excavators, ensuring the normal operation of heavy equipment on challenging terrains such as wetlands and gravel. Currently, Hyundai Steel's track products have a global market share of 27%, ranking second worldwide; sheet piles are steel materials used for cut-off walls and road enclosures in large-scale civil engineering sites.

In 2015, Hyundai Steel's sheet pile exports amounted to approximately $89 million, ranking fourth in global market share; high-speed steel rolls are used for rolling semi-finished products such as slabs and billets at high temperatures. Currently, Hyundai Steel's track products rank third in global market share; unequal-leg unequal-thickness angles are used as reinforcement materials for ship hull structures to maintain the shape and strength of the hull, and Hyundai Steel's unequal-leg unequal-thickness angles rank second in global market share.

The newly selected P110 oil well pipe is an ultra-high-strength product used for the extraction of underground crude oil and surface natural gas. Its export value in 2015 was approximately $33 million, and Hyundai Steel's P110 oil well pipes rank fifth in global market share. This product was originally a flagship product of Hyundai Hysco and became a new "World Class Product" after the merger with Hyundai Steel. Over the past five years, Hyundai Steel's exports of "World Class Products" have earned over $1 billion in foreign exchange.

As South Korea's largest electric furnace steelmaker, Hyundai Steel has accumulated more than 60 years of technical experience. It was the first in South Korea to develop H-beams, and through "multi-specification, high-quality" production, Hyundai Steel's H-beams have gained a significant advantage in the global market.

In 2010, Hyundai Steel's H-beams were exported for the first time, totaling $714 million, and have grown steadily since then, with exports reaching $745 million in 2015. Through independent research and development, Hyundai Steel has developed seismic-resistant H-beams (SHN), which can significantly improve the safety performance of buildings and withstand earthquakes of magnitude 6 or above. In addition, by producing new products such as special steels and steel pipes and enriching its product portfolio, Hyundai Steel has further consolidated its position as an integrated steelmaker.

Starting from the second half of 2010, in the context of the global economic downturn, Hyundai Steel expanded exports of H-beams, rebar, and hot-rolled coils, and opened up emerging markets in Southeast Asia, the Middle East, and the Americas. In 2014, Hyundai Steel's export value reached $4 billion. To meet the growing demand for ultra-high-strength automotive sheets, Hyundai Steel has added a new production line at its Dangjin No. 2 Cold Rolling Plant, planning to produce 500,000 tons annually, and has invested 300 billion won in its Incheon plant for the production of high-end products.

Dongkuk Steel

Luxteel color-coated sheets enter the ranks of "World Class Products"

In 2016, Dongkuk Steel's Luxteel color-coated sheets for construction materials officially joined the ranks of "World Class Products". Luxteel uses PCM pre-coated metal steel or coated sheets (galvanized/galvalume) as the substrate, and can be designed according to customers' required colors, textures, performance, and patterns. It has good corrosion resistance and weather resistance and is suitable for interior and exterior decoration materials of buildings, elevator, and fire door materials.

In 2011, Dongkuk Steel was the first in South Korea to launch the high-end construction color-coated sheet brand Luxteel. The name "Luxteel" is a combination of the English words "luxury" and "steel". Since then, it has successively created a series of world-first products such as UNIGLASS, UNITEX, PATTERNGLASS, IMPRINTING, P-TEX, N-TEX, and GLASTEE, and has established strict product standards, which help replace imported products and enhance the competitiveness of Korean products.

Color-coated sheets for construction materials are produced by continuously coating steel sheets and then applying various processes such as printing and embossing. It is worth mentioning that Dongkuk Steel's Luxteel has achieved high-speed and uniform coloring coating, thereby reducing coating loss and improving product quality. Moreover, through close cooperation with customer companies, Dongkuk Steel continuously develops products that meet market needs. Up to now, the company can produce high-end "3Coating" products and has a super-large construction product group.

Since 2016, Dongkuk Steel has broken away from the traditional steel business model and adopted proactive and differentiated marketing strategies. The product has been used in the manufacturing of some ThyssenKrupp elevators in Germany. Dongkuk Steel recently completed the development of products dedicated to Otis elevators and is expected to officially use them in the manufacturing of Otis elevators in the United States in 2017. Dongkuk Steel is also actively seeking new orders from Hyundai Elevator. In South Korea, the Genesis, the premium car brand of Hyundai Motor Group, made its debut at the Starfield Hanam shopping mall in Gyeonggi Province, and its studio's exterior and interior decoration materials all used Luxteel. Dongkuk Steel's Luxteel management team, through design companies, monitors the entire process from design to construction, providing a one-stop service of "construction-product technical support-consulting", seamlessly integrating Luxteel with Genesis, thereby providing customers with overall solutions.

Previously, Luxteel was also used for the interior and exterior materials of Mercedes-Benz exhibition stands in Germany. To enhance the brand image of Luxteel, Dongkuk Steel will continue to strengthen cooperation with these well-known automobile manufacturers. At the same time, Dongkuk Steel actively conducts local market research by learning about the culture and characteristics of different countries from local experts, while expanding sales to overseas markets such as Russia, Europe, Australia, and the United States. In 2013, Luxteel's total sales volume was 47,000 tons; in 2014, it was 70,000 tons, a sharp increase of nearly 50% year-on-year; in 2015, sales volume reached over 80,000 tons, and in 2016 total sales reached 120,000 to 130,000 tons. Benefiting from steady sales growth, Dongkuk Steel's operating performance continued to improve.

Other Steel Companies

Focusing on Featured Products and Technologies

In 2015, Dongbu Metal's medium- and low-carbon ferromanganese alloy products entered the ranks of "World Class Products" for the first time. Ferromanganese alloys are used as deoxidizers and desulfurizers in the steelmaking process and are important auxiliary materials for improving steel strength and formability and achieving lightweight products. According to carbon content, ferromanganese alloys can be divided into high-carbon, medium-carbon, and low-carbon types.

High-carbon ferromanganese has a high carbon content and is mostly used for manufacturing ordinary plates. Medium- and low-carbon ferromanganese is produced by refining high-carbon ferromanganese to reduce carbon content and is used for the production of special plates for automobiles, ships, etc. It is a high-quality product with high added value.

Currently, Dongbu Metal's medium- and low-carbon ferromanganese production scale ranks second in the world, after France's Eramet Group, and its export value in 2015 accounted for more than 80% of South Korea's medium- and low-carbon ferromanganese exports. The company was founded in 1964 and is South Korea's earliest ferroalloy producer. It currently ranks first in South Korea in the ferroalloy field and second in the world in the refined ferroalloy field. Among them, Dongbu Metal's Donghae plant, as a single plant, has the world's largest production scale. In addition to medium- and low-carbon ferromanganese technology, Dongbu Metal is also the second company in the world to develop high-purity ultra-low-carbon ferromanganese technology, with strong technical strength reaching the world's leading level.