The First M&A Case of a Product Design Company Emerges... "A Signal for the Birth of a Long-Lasting Enterprise"

Majority of Solo Entrepreneurs in Difficult Conditions
Acquisition Process Completed Among Leading Design Firms
Expectations Rise for Expansion Beyond Small-Scale Structures

The first merger and acquisition (M&A) case between domestic product design specialist companies has emerged. There is not a single design specialist company in Korea with a history of over 50 years. The industry believes that this acquisition has laid the foundation for the birth of a long-established domestic design company.

On the 11th, the product design specialist company 'J Design Works' finalized the acquisition process of 'Iilicom Company.'

Founded in 2010, J Design Works is a young company with promising prospects, having been the first product design company to receive the Presidential Citation at the Korea Design Awards. It has won numerous domestic and international awards, including the world's top three design awards: Red Dot, iF, and IDEA, and has extensive experience in various design developments. The eco-friendly energy generation system 'Water Station' by K-Watercraft, designed by J Design Works, and the modular robotic arm 'Hunit' by Supernova also received Innovation Awards at CES 2023.

Iilicom Company, established in 1989, is a product design specialist company with a long history of 35 years. It is also the first industrial design specialist company certified by the Korea Institute of Design Promotion. An industrial design specialist company is one that specializes in the development, research, analysis, and consulting of industrial design, with about 13,000 companies currently registered. Iilicom Company has accumulated experience and know-how by designing a wide range of products, from cosmetic containers to excavators. Through this acquisition, Iilicom Company will continue its legacy, while CEO Kim Seon-kyung of Iilicom Company will hand over management rights to Jin Cheol, CEO of J Design Works.

The modular robotic arm 'Hunit' of Supernova, designed by J Design Works.

Domestic design specialist companies have a very short lifespan. The average number of employees in design specialist companies is 2.25, and companies with 15 or more employees account for only 1.2% of the total. In particular, the number of one-person companies, which make up 58.5% of design specialist companies, has recently been increasing, making it difficult for founders to pass the company on to the next generation. There is not a single long-established domestic design specialist company with a history of over 50 years.

Through this M&A case between leading product design companies, the industry expects that a design specialist company with a history of over 100 years could be born. It is anticipated that M&A among design specialist companies will expand as a way to establish a foundation for sustainable operation and to break away from the small-scale structure.

Lee In-gi, chairman of the Korea Design Industry Federation, said, "It is quite unusual for a design specialist company to acquire and merge with another company in the same specialized field." He added, "A large design specialist company has been born by combining the youthful ambition of J Design Works with the long-accumulated know-how of Iilicom Company."

The chairman stated, "Maintaining the legacy of long-established domestic companies and continuing their corporate history will have a positive impact on the design industry," and added, "We will spare no support to activate such cases and to expand historically significant large design specialist companies."

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