[Vitamin SME] K-Quarantine Product Export Agency... Turning the COVID Crisis into Opportunity

<6> Export-Import Agency Royal GLS
Sales Jump 168% Compared to First Half of Last Year
Active in Mask and Briquette Donations and Volunteer Activities

There are small but strong companies overcoming the crisis by uniting labor and management despite facing difficulties in management due to the novel coronavirus infection (COVID-19) situation. The source of strength for these companies to overcome hardships amid numerous environmental changes such as economic downturn caused by COVID-19 is coexistence. They are enhancing competitiveness through various methods such as operating in-house welfare systems that help employees enjoy a happy work life and developing and investing in new technologies for sustainable growth. We introduce 'Vitamin Small Giants' that energize by having employers and workers consider each other and move forward together for a common goal.

Kim Hwanyong, CEO of Royal GLS. Photo by Moon Hyewon, Asia Economy

[Asia Economy Reporter Moon Hyewon] "Thinking back to early this year when export and import volumes sharply declined right after the outbreak of the novel coronavirus infection (COVID-19), it still makes me dizzy. However, the crisis soon turned into an opportunity. As protective equipment became scarce worldwide, inquiries for export agency services of 'K-quarantine products' gradually increased, and sales in the first half of this year (12.6 billion KRW) soared 168% compared to the same period last year (7.5 billion KRW)."

Kim Hwanyong, CEO of Royal GLS, an export-import agency company, was recognized for his contribution as a small but strong company that turned the COVID-19 crisis into an opportunity and was invited to the 'Logistics Day' event next month. Right after the COVID-19 outbreak, CEO Kim relocated executives and employees to the air export department and aggressively responded by expanding space block contracts for cargo planes. He actively conducted cargo acquisition sales through overseas partner companies and put his life on the line for sea-air combined transportation of quarantine products from China. As a result of the combined efforts of him and about 30 executives and employees, air cargo export shipments in the first half of this year increased by 28% compared to the same period last year, and sales also increased significantly.

CEO Kim, known as a veteran in the international logistics forwarding industry with over 30 years of experience since joining DHL Korea (Ilyang Express) in 1983, left a stable job to start his own business 10 years ago. When he acquired Royal GLS, the company was struggling due to severed transactions with large shippers and consecutive resignations of employees. He focused on the Middle East, which was a so-called 'hot' market in 2011. CEO Kim recalled that the demand for Korean cars in Iran was so hot that about 15,000 cars were exported annually from Korea to the Middle East at that time. He concentrated on opening export routes for auto parts. His prediction was correct. The company size grew more than tenfold in four years.

Last month, as transaction volumes increased due to the COVID-19 situation, two more employees were hired. While most small and medium-sized enterprises, including the logistics industry, faced management difficulties due to the COVID-19 situation this year and implemented layoffs or wage cuts, CEO Kim rather boosted morale by raising employee wages by more than 11%. Also, from the early days of the COVID-19 outbreak until now, he purchased 10,000 masks and donated them to small logistics companies, cargo import companies at Incheon Airport, and logistics partners.

In 2012, CEO Kim established the 'Stepping Stone Sharing Association' to encourage social service and sharing activities among executives and employees, and every October to November, donated briquettes to elderly living alone and low-income families. He also makes monthly cash donations to social welfare organizations such as UNICEF, Good Neighbors, Green Umbrella Child Fund, and Save the Children. In 2017, he donated 600 general knowledge books to the Army Military Academy.

CEO Kim said, "I have worked in large companies, but I was disappointed to see that as companies grew, they did less social contribution activities and became lax in fulfilling corporate social responsibility." He added, "Although it is a small effort, I am happier now to fulfill corporate social responsibility through volunteer activities for marginalized groups and local communities and to contribute to spreading a culture of donation."

At the entrance of the Royal GLS office located in Mapo-gu, Seoul, a fish aquarium welcomes visitors. Photo by Moon Hyewon, Asia Economy.

CEO Kim is also called the 'Plant-growing CEO' inside the company. At the office entrance located in Mapo-gu, Seoul, there is an aquarium, and the office is filled with various plants. CEO Kim said, "By chance, I saw that the plants placed in front of a fan grew stronger vascular tissues and survived longer than others, which gave me great insight." He added, "Management also requires crises and trials to grow more solidly in the future."

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