'Innovation Mecca' Preparing Synergy with Netmarble... Coway Yugu Factory

Malaysia-bound 'Neo' Water Purifier Produced Every 43 Seconds
AI and Big Data Technologies Create Synergy with Parent Company
Expanding Smart Home Subscription Economy Market Targeting

Workers at Coway Yugu Factory are working on the production line of the 'Neo (model CHP-260N)' water purifier exported to Malaysia.

[Gongju (Chungnam) = Asia Economy Reporter Kim Daeseop] Coway's production plant in Yugu-eup, Gongju, Chungnam. Kim Donghwa, General Manager (Executive Director) of Coway Yugu Plant, expressed confidence, saying, "We have been steadily managing production and operations in line with smart home market trends, and we are fully prepared." Although changes are expected to align with the new management environment following Coway's recent acquisition by game company Netmarble, the atmosphere at the Yugu plant was calm.

The employees' expressions were also bright. There was little sign of anxiety about Netmarble, which has no manufacturing experience. Lee Hoseop, Deputy Head of the Production Management Team, explained the factory atmosphere, saying, "I think there will be no changes in production at all. We just need to continue the innovations we have been doing."

The production line was still lively. The 'Neo' water purifier (model CHP-260N), exported to Malaysia, is produced at a rate of one unit every 43 seconds. The Neo water purifier was a popular model, with 190,000 units exported to Malaysia last year. It features a detachable and washable faucet at the water outlet to enhance hygiene, and considering the preference for hot water among Southeast Asian consumers, it is equipped with a separate hot water outlet in addition to the regular cold and room temperature water outlet.

The assembly process of the water purifier and quality inspections through the 'Waterless Test System' continued. Oh Changseop, Deputy Head of the Production Team, said, "It is a system that checks whether water flows properly and if there are any leaks," adding, "Since last year, we have also been operating a system that automatically performs motion sensor tests, nitrogen and vacuum inspections using tablets."

The waterless water purifier test system is one of the innovations at the Yugu plant. In the past, testing a finished water purifier product required filling it with water. However, even after draining the water, residual moisture posed a problem. They explored substances to replace water for testing the purifier and succeeded in developing a system using nitrogen and vacuum. This greatly reduced testing time and water usage, thereby lowering manufacturing costs.

On one side of the factory, production of the 'Multi-Action Air Purifier' (model AP-1519M) was in full swing. This is an upgraded model released just one month ago. The front cover and filter were installed, followed by assembly of the lower parts. This product offers a total of four air purification modes, including multi-circulation and focused circulation. Notably, it displays the level of ultrafine dust pollution in real time on the front of the product, allowing users to easily understand the air quality status at a glance.

Expansion of production for this year's flagship product, the 'Hanppyeom Siru Direct Water Purifier,' is also anticipated. This model is an upgraded version of the existing 'Siru Direct Water Purifier,' which was the first to successfully implement direct water flow using a reverse osmosis (RO) membrane filter with strong contaminant removal performance. It is smaller in size but enhanced in function.

Yugu Factory Exterior / Photo by Coway

Deputy Head Oh Changseop said, "For the Hanppyeom Siru Direct Water Premium Purifier, launched in early December last year, about 3,000 initial units were produced in one month," adding, "We can produce up to 400 units per day and plan to operate in line with increasing volume."

The Yugu plant is known as Coway's innovation hub. Since its completion in April 1994, it has driven Coway's sustainable growth through various production and management innovations. It is equipped with advanced production facilities on a site of about 40,000 square meters, roughly six times the size of a soccer field. The plant produces water purifiers, air purifiers, and filters. It has the capacity to manufacture up to 1.51 million products and 37.35 million parts annually.

It is the largest domestic production facility of Coway. About 280 employees, including management and production staff, work there. Yang Hyunjin, Deputy Head of the Factory Management Team, said, "We are proactively responding to government policies on reduced working hours and increased product volume," adding, "The average tenure of production workers is about 12 years, and we hired about 30 new employees last year."

Netmarble, which acquired Coway, has technological capabilities not only in gaming but also in artificial intelligence (AI), big data, and cloud computing. Coway expects to expand its business into the smart home subscription economy market and globalize through its combination with Netmarble. Factory Manager Kim Donghwa said, "I hope the direction of expanding into the smart home subscription economy market will create significant synergy effects with the Environmental Technology Research Institute and the marketing department."

This content was produced with the assistance of AI translation services.