NSV

Yoon Eun-joong, CEO of NSV, shakes his head as he complains about the difficulties caused by Japan's export restrictions at the company's Seoul office in Seocho-dong, Seoul, on Monday. /Simwoo Daily

"My biggest concern with this trade dispute is that it could lead to a cooling-off period between our companies and Japanese companies. I don't think we'll cut off business with Japan altogether, but I'm concerned that there will be a significant disruption in our ability to do business."

Yoon Eun-joong (64), CEO of NSV, met with the Seoul Economic Daily at the company's Seoul office in Seocho-dong, Seocho-gu, Seoul, on Aug. 8 to express his deep concern. NSV is a small company that produces anti-vibration springs, anti-vibration pads, and silencers for buildings and factories.

Last year, NSV signed an exclusive distribution agreement for polyurethane mat (PO-MAT) with a Japanese company. It was a valuable achievement for the company, which has been striving for technology development for the past 20 years. Based on this contract, the company has been conducting sales to supply polyurethane mats to local construction companies in Japan. Last year, the company also signed a technology exchange agreement with Kurashiki Gakko, a small Japanese company specialized in dustproof and vibration isolation materials. The company manufactures dustproof materials based on drawings provided by Kurashiki Gakko. The dustproof materials will be delivered to Samsung Electronics' semiconductor fab.

However, the Japanese government's decision to impose export restrictions on core semiconductor and display materials on April 4 has sparked a firestorm. The attitude of Japanese companies that do business with the company has changed significantly from before. "After the Japanese government announced the export restrictions, we received a reply from a Japanese customer who was negotiating with us for polyurethane mats, saying, 'Let's wait and see,'" said Yang Seok-geun, head of the overseas business division. "It can be interpreted as an 'indefinite postponement.

I'm close to signing an export contract for dust mats.

Negotiating 'Let's wait' reply

Local attitudes have changed after the Japanese ban

A major setback for a business you've worked hard to build

Will the political logic get the better of me?

◇"It took 20 years to break through the Japanese market"=NSV was founded by Mr. Yoon in 1986. Since its establishment, it has been steadily developing dustproof and vibration isolation materials, and is known to be the No. 1 producer of anti-vibration pads among domestic companies. He has been knocking on the doors of Japanese companies since 2000. Japan is very important in the dustproof and vibration isolation industry. Japan is prone to earthquakes, so earthquake-resistant designs are in high demand. As a result, there are many companies looking for anti-vibration and anti-seismic materials to prevent buildings from shaking. There are many Japanese companies with excellent technology in the field of anti-vibration and vibration isolation materials. However, it has taken nearly 20 years for the industry to achieve real results in Japan. This is because Japanese companies repeatedly demanded the original equipment manufacturer (OEM) method. However, Yoon wanted to break into the Japanese market under the name of NNSV. "Japanese companies don't like Korean products because their brand value is relatively low. That's why many companies suggested that we become an OEM," Yoon recalls. "It was inevitable that we would be slow to enter the market, but we thought we should sell it under our own brand."

Yoon's persistence finally paid off. Last year, he signed a technology agreement with Kurashiki Gakko, a Japanese automotive anti-vibration rubber company. Kurashiki Gakko receives drawings of damping materials, and NSV makes products based on them. Based on a tour of Kurashiki Gakko's factory, Yoon expanded the production facility in Namdong Industrial Complex last year. Last year, the company also signed a sales contract with a Japanese company. "We first established a relationship with the company in 2000," says Mr. Yoon, "and the current CEO of the company is the son of the CEO in 2000. That means a long time has passed," he said.

Japanese companies enter the market at a 'slow tempo'-Based on these results, NSV has accelerated its efforts to sell polyurethane mats in the Japanese market. The Austrian company Getzner accounts for 70% of the total market for polyurethane mats. However, domestically, Nsb is the leader. Recently, however, feedback from Japanese companies has been slow, raising anxiety. "The Japanese companies we used to deal with have definitely turned to a 'slower tempo,'" Yoon said, "and Japanese construction companies are saying, 'Let's wait for a little more time,' which is ostensibly a way to wait until the relationship between Japan and South Korea stabilizes, but in reality, they are postponing delivery contracts or orders indefinitely."

Throughout the interview, Mr. Yoon repeatedly emphasized that Korean and Japanese companies are "close partners". The partnership between the two countries' companies is inevitable, he said, and a protracted trade dispute will naturally have a negative impact on both sides. "Japanese companies are also affected by this," he said, "so there is a cautious hope (among Japanese companies) that this trade dispute will not last long."

He hopes that the political parties in both countries will not be swayed by their own "political logic" and will instead focus on the practicalities of economic issues. "After all, the Japanese government did this for the sake of votes," Yoon said, adding, "Businessmen can't say anything about politics, but they should create an environment where they can do business regardless of the political logic."

/simwu diary vita@sedaily.com

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