Electronic Times and Korea Electronics and Telecommunications Research Institute (KETI) to Hold On-Site Discussion at CES

The world's largest consumer electronics and IT exhibition, 'CES 2022,' returned to the offline format after a two-year hiatus. Despite the rapid spread of the Omicron variant, leading global tech companies declared consecutive absences. However, the enthusiasm of participating companies to showcase their honed technological capabilities was hotter than ever. Korean companies, with over 500 participants, proudly took center stage at CES. More than 200 promising startups set up booths, marking the largest presence in history and symbolizing the blossoming of the 'second venture boom.

CES 2022 was an event to observe changes in the technological landscape driven by new issues such as the COVID-19 pandemic, carbon neutrality, and the restructuring of the global supply chain. With the increasing demand for contactless solutions, technologies like the metaverse and robots gained attention, and global companies revealed their advanced visions for achieving carbon neutrality. In light of these technological changes, preparation from domestic companies and the government is essential. The Electronic Times, in collaboration with the Korea Electronics Association (KEA), held a year-end roundtable at CES to assess technology issues and future challenges as envisioned by various experts.

◆Participants (in alphabetical order)

△Kim Young-sam, Director of the Korea Institute of Electronics Technology

△Park Cheong-won, Vice Chairman of the Korea Electronics Association (KEA)

△Lee Dong-heon, CEO of A-Slip

△Lee Rang-hyuk, CEO of Gurumi

△Lee Yong-sung, CEO of AutoL

◇Social Affairs=Park Tae-jun, Team Leader of the CES 2022 Special Coverage Team at Electronic Times

◇Social Affairs (Park Tae-jun, Team Leader at Electronic Times)=While touring CES 2022, what were the most notable aspects for you?

◇Park Cheong-won (KEA Vice Chairman)=Despite challenging conditions such as COVID-19, over 500 Korean companies participated, marking the second-highest number globally after the United States. This was possible due to the passion for global expansion.

While many finished vehicle manufacturers were absent in the technology section, there were numerous technologies reaching commercialization levels in autonomous driving, ranging from L4 to L5. These technologies are rapidly expanding from automobiles to urban air mobility, and the commercialization of flying autonomous vehicles may happen sooner than expected. In the LiDAR field, a core component of autonomous driving, the completeness was so high that distinguishing between images taken by a camera and real scenes became difficult.

In the metaverse sector, there has been significant improvement as it evolved from PC or 2D-based to 3D. Especially, technologies such as Extended Reality (XR) and Non-Fungible Tokens (NFT) recognizing virtual asset ownership are expected to accelerate the spread of the metaverse.

◇Kim Young-sam (Director of the Korea Institute of Electronics Technology)=Metaverse has become a core technology at the world's largest IT show, 20 years after it was first introduced in Neal Stephenson's 1992 novel "Snow Crash." It is not just a matter of attention or popularity but a turning point in the industrialization phase.

Another impressive aspect was carbon neutrality. Major mobility companies discussed electrification, high efficiency, and optimization, emphasizing the importance of carbon neutrality. Seeing these trends, our companies need to pay attention. The active participation of Korean companies, such as Hyundai's 'M.Vision.2Go,' Doosan's hydrogen drone, and Hyundai Heavy Industries' development of eco-friendly ships, in addressing the theme of carbon neutrality was noteworthy.

◇Social Affairs=Many innovative Korean companies participated. As a CEO, how do you view CES 2022?

◇Lee Dong-heon (CEO of A-Slip)=For the first time in CES history, the CEO of a healthcare company (Abbott) delivered the keynote speech, and the main exhibition hall featured a dedicated healthcare zone. According to the organizers, the second-most visited area among CES booths was the healthcare zone.

The healthcare industry has experienced significant technological growth, combining sensing and analysis algorithms to gather diverse data, leading to profound implications. Especially after the COVID-19 pandemic, hospital systems have extended into homes, taking responsibility for health. While the use of artificial intelligence (AI) in diagnosing diseases has been explored, advancements in edge computing, on-device AI, and the ability to collect and analyze biosignals have elevated the level of healthcare technology.

◇Lee Rang-hyuk (CEO of Gurumi)=I paid attention to robotics, metaverse, AI, and other areas. It seems that the point where the boundary between virtual and real life becomes blurred in our daily lives is approaching rapidly. The robot named 'Ameca,' which garnered attention at the exhibition, moves and converses just like a human. The emergence of robots that resemble humans points to the future.

CES 2022 was reported to have been significantly scaled down compared to the past, with about half the size, due to factors such as the COVID-19 pandemic. Despite the reduced scale, it was a scene where new markets were created through the convergence of various businesses.

◇Lee Yong-sung (CEO of AutoL)=Consistently, the focal points were eco-friendliness and autonomous driving. General Motors (GM), a global automaker, had its chairman deliver a keynote speech instead of participating in the booth. However, their presentation only included product introductions related to these two issues. In contrast, Hyundai showcased robots, Mobility of Things (MoT), and other innovative elements. I view this as an effective presentation that skillfully conveyed the realization of the former CEO's vision and philosophy.

With autonomous driving taking the spotlight, many LiDAR companies also participated. However, it was challenging to find premium LiDAR technology or products suitable for application in automobiles. The key factors in this area are resolution and distance, and there seemed to be a lack of serious consideration for how these aspects could endure in the automotive environment. Considering all this, CES 2022 may not have been an opportunity to distinguish the gems in automotive LiDAR technology companies.

◇Social=What were the strengths and areas for improvement for our companies at CES 2022?

◇Kim Young-sam=Personally, I believe that hydrogen cars are the ultimate gateway to achieving carbon neutrality rather than electric cars. In this regard, the Korean government should take the lead in realizing carbon neutrality through hydrogen cars. It implies that the government needs to expand support for hydrogen cars. Currently, the subsidy for hydrogen cars in Korea is approximately in the 30 million won range, while in California alone in the United States, it is around 50 million won.

◇Healthcare is also an area that our companies and the government need to pay more attention to. Especially in the digital healthcare field, there are many innovative ideas from our companies. In this regard, hospitals, which hold vast medical information, should also actively participate. However, only about 40% of tertiary general hospitals and 20% of general hospitals in Korea are actively utilizing AI and data for business, indicating the need for more opportunities despite the challenges posed by strict privacy and medical laws.

◇Park Cheong-won=It's encouraging to see an increasing number of Korean startups participating in CES. They have not only increased in number but have also become globalized, showcasing creativity. Many promising companies with technological capabilities participated in the healthcare sector as well. While digital healthcare technology for diagnosis and prediction is meaningful, adding digital therapy could potentially increase the value.

It's uncertain how well we are adapting to the changing global value chain. The United States and China are internalizing the value chain due to the competition for technological hegemony. Against this backdrop, I hope Korean conglomerates will take the lead in reorganizing the value chain. In a changing supply chain scenario, the leadership of large companies not only shapes the direction for small and medium-sized enterprises but also has a positive impact.

◇Social=Although Korea has seen an activation of policies supporting venture and startup companies, there are voices calling for regulatory improvements.

◇Lee Dong-heon=Insomnia is now considered a symptom and illness, receiving significant attention at this CES as well. However, cardiovascular diseases such as arrhythmia face market growth limitations due to regulations prohibiting remote medical services. Even though such technologies are globally used, Korea needs government policies that support global market entry when introducing them is difficult due to regulations.

◇Lee Yong-sung=I received government venture certification after starting my company. I expected various benefits with this certification. The most significant benefit is a 50% deduction in corporate tax for three years. However, it's questionable how many startups generate revenue in the three years after starting, and how much that revenue is. It would be more practical to apply this deduction from the point when revenue is generated rather than after three years of founding.

Employee recruitment is also challenging. Startups want to hire people with expertise in their roles, but this is difficult. It would be helpful to have policies that preserve labor costs a bit more. Currently, youth employment is almost the only option. Various support measures, such as raising the youth criteria supported by the government, would be beneficial.

◇Lee Rang-hyuk=I hope to expand support for small and medium-sized ventures when establishing overseas subsidiaries. KOTRA provides support, including office support when establishing overseas subsidiaries. However, the support location is limited, so there are limitations. Policies that provide diverse support without location restrictions are needed. Also, when doing business abroad, local talent recruitment is necessary. I understand the difficulty of supporting the recruitment of local personnel overseas with taxpayer money, but perhaps there could be policies to support it in certain areas or in a different way.

◇Social=Based on the industry trends observed at CES, please explain the major projects and future support directions of the Electronics and Telecommunications Research Institute (ETRI) and the Korea Electronics Association (KEA) for this year.

◇Kim Young-sam=ETRI has provided 19 education programs, including AI and ICT, and has graduated 1,630 students so far. The focus is on educating and connecting promising technologies to business. Additionally, customized support is provided differently for companies at each stage. The innovation awards won by our companies at CES increased from 5 in 2019 to 27 this year. ETRI's role is to support startups with young and innovative ideas.

What's regrettable is that in Korea, there is a tendency to stigmatize companies that have experienced failure. In advanced countries, failed companies share their experiences, and listeners respect that. We need to create an environment that is not afraid of failure.

◇Park Cheong-won=KEA has established a center in Yongsan, Seoul, for manufacturing electronic components for the electronics industry. Startups have nowhere to turn for initial production. To alleviate this difficulty, we provide opportunities for companies to produce initial products without burden and receive feedback for improvement. In the software (SW) sector, where content development such as virtual reality (VR) is active, a center to measure the reliability of such results will also be operated this year. In addition, considering the difficulty of individual companies in building big data platforms, a platform that can be shared jointly will be created and supported.

◇Social=Expectations and wishes for CES next year.

◇Lee Rang-hyuk=If the metaverse spreads, it seems that an era will come where people gather and work in virtual spaces, creating new things. When metaverse workplaces emerge, many changes are expected for our companies. Firstly, it may be possible to hire people living in various places beyond physical spaces. Being able to choose excellent engineers beyond geographical limitations is a positive aspect. However, the sense of unity that offline organizations have may decrease significantly. At this point, what stands out is humanism. Managing company unity and the mental health of employees will become crucial.

◇Park Cheong-won=As the carbon neutrality issue becomes more prominent, trade regulations may become a reality. In other words, each country's carbon-neutral system could restrain imports. This could become an obstacle for Korean companies entering overseas markets. In this regard, the role of the government is crucial. When each country creates and announces carbon-neutral systems, the Korean government should make efforts to change them favorably, reflecting the intentions of companies.

◇Kim Young-sam=I share the same thoughts. Carbon neutrality will likely be a central issue next year as well. Both in business fields and at CES 2023, messages and technologies related to carbon neutrality will continue to attract attention.

◇Lee Yong-sung=CES is an important opportunity not only for consumers but also for companies. Business meetings need to be held for each business area, but, in fact, startups like us don't have many contact points. The government and large companies are likely to have a lot of information on this, and it would be great if there were programs to share this information together.

◇Lee Dong-heon=Traditional topics that appeared in CES keynote speeches have consistently received attention. Healthcare will continue to be highlighted next year as well. Our company was founded not long ago, so we lack the capacity for promotion and marketing. I hope that marketing support will be provided for individual booth companies in jointly organized areas by the government or local governments.

Reporter Jung Yong-chul jungyc@etnews.com

View original article : https://www.etnews.com/20220108000010