[K-Industry, Architects of the Future] Boosting R&D While Others Halted: Advancing into the Aerospace Market with AI and Specialty Alloys

(7) Minseok Chae, Head of Technology Research Institute, SeAH Changwon Specialty Steel


Rapid Market Shifts Amid Low-Cost Competition from China and India

Breakthrough with Nickel and Titanium Specialty Alloys

Localization Cuts Delivery Times by More Than Half


"Aerospace and Defense Expansion Is a Matter of Survival"

AI-Based Quality Control... Integration with Production Systems Underway

Aiming for Boeing Qualified Certification in the First Half of Next Year

Editor's NoteThe landscape of Korea's industries is rapidly changing. Amidst turbulence in the global market, next-generation technology researchers and engineers are quietly shaping the future. They are the lifeblood of the Korean economy and the true protagonists who will sustain Korea in the years ahead. The Asia Business Daily is launching an interview series, "K-Industry: Architects of the Future," to spotlight their innovative technologies and visions. The seventh feature is Minseok Chae, Head of the Technology Research Institute and Director of the Aerospace Business Unit at SeAH Changwon Specialty Steel, who is leading a transformation toward aerospace and defense specialty alloys in the face of low-cost competition from China and India.

Korea's steel industry stands at a structural turning point. As the profitability of the general-purpose stainless steel market has rapidly deteriorated due to low-cost competition from China and India, domestic companies have been forced to halt electric furnace operations and reduce the number of operating plants. Amid this trend, the breakthrough for survival that SeAH Changwon Specialty Steel discovered was none other than next-generation technology based on high value-added products. The company boldly expanded R&D investment in nickel- and titanium-based specialty alloys and seized the opportunity for localization by targeting gaps in the global supply chain that emerged after the Russia-Ukraine war. This move is significant not only for the survival of a single company but also for demonstrating new possibilities in aerospace and defense materials, a sector that must become a growth engine for the Korean industry for decades to come.

Minseok Chae, Technical Research Institute Director and Head of Aerospace Business Division at SeAH Changwon Integrated Special Steel. SeAH Changwon Integrated Special Steel

At the center of this transformation is Minseok Chae, Head of the Technology Research Institute and Director of the Aerospace Business Unit at SeAH Changwon Specialty Steel, who designed and executed the changes. He has spearheaded SeAH Group’s digital transformation (DT) vision and master planning, smart factory implementation strategies, and zero-carbon fuel transition strategies. On May 15, at SeAH Tower in Mapo, Seoul, we met with him as he is devoting all efforts to expanding the aerospace specialty alloys business, aiming to obtain Boeing’s Qualified Product List (QPL) certification in the first half of next year.

Chae described SeAH Changwon Specialty Steel’s foray into aerospace and defense specialty alloys as "a matter of survival." He emphasized that competitiveness can only be maintained by shifting to high value-added markets like semiconductors, nuclear power, and aerospace. This is why the company has increased its R&D investment by 77%, from 18.4 billion won to 32.6 billion won over the past two years, focusing on the development of nickel- and titanium-based specialty alloys.

Another reason he judged this to be the right time to enter the market is the global supply chain reorganization. After the Russia-Ukraine war, American and European aerospace and defense companies began seeking new suppliers as they reduced their dependence on Russian specialty alloys. Chae explained, "Aerospace has always been a closed market with almost no supply chain changes, but after the war, cracks appeared and there was a movement to find new suppliers."

SeAH Changwon Specialty Steel

On top of this, delivery competitiveness has been added. Chae noted, "Due to the global shortage of specialty alloys, delivery times are typically 50 to 70 weeks, but as we demonstrated the ability to deliver in about 20 weeks, new opportunities began to open up."

SeAH Changwon Specialty Steel has recently adopted generative artificial intelligence (AI) for quality control as well. The AI system learns aerospace material specifications and customer requirements, providing workers with real-time information needed at each stage of design and production.

Chae explained, "Aviation specifications are structured like a chain, so missing even one can be fatal. We have built a system where AI informs workers in real time about which specifications need to be checked." He added, "In the future, we plan to further develop the system to link it with the manufacturing execution system, enabling real-time guidance on quality issues for each process step."

Cha Minseok, head of the research institute at SeAH Changwon Special Steel, is observing the production process at the continuous rolling line facility of the small rolling mill. SeAH Changwon Special Steel

SeAH Changwon Specialty Steel recently succeeded in supplying a prototype of the engine superalloy "Waspaloy" to Hanwha Aerospace. Waspaloy is a high-temperature nickel superalloy that can withstand temperatures above 900 degrees Celsius and is used in core aircraft engine components. Previously, it took more than 80 weeks to procure this material from the United States.

Chae remarked, "Initially, we supplied a small quantity, but customer feedback was positive, and we are now working on developing additional specifications. We are moving toward securing both delivery and price competitiveness."

The company is also accelerating its entry into the North American market by establishing a production base in Temple, Texas. SeAH Changwon Specialty Steel plans to continue expanding its aerospace and defense materials business, leveraging local production and delivery competitiveness enabled by localization of specialty alloys.

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