With the advent of the electric vehicle era, the demand for electromagnetic wave shielding technology is surging, marking a new turning point for the conductive fiber market. The importance of high-functionality materials that prevent electromagnetic interference is growing, especially as electronic devices in automobiles increase.

Ajin Electron Co., Ltd., headquartered in Busan, has proactively identified these industry trends and is accelerating its global market penetration by fully operating a corporate factory that has invested approximately KRW 15 billion.

This company, equipped with the largest conductive fiber production facility in Korea, is expanding its business areas beyond the traditional information technology (IT) material market to advanced industries such as automobiles, sensors, and drones, establishing differentiated competitiveness.

Focusing on the production of materials for special sensors through the corporate factory

The corporate factory, officially launched last year, is currently operating eight roll-to-roll lines at 100% capacity. The core production item of the new factory is conductive fabric for special sensors, which applies electroless metal plating technology and is an essential material for automobiles and advanced electronic devices.

With the rapid growth of the sensor market and the explosive increase in demand for high-precision conductive materials, the company is focusing its production capabilities in this area. It has also successfully established a multi-product production system by stably producing existing conductive cushion and nonwoven products.

Ajin Electron's competitiveness goes beyond mere production scale expansion. The issue of corrosion resistance of equipment due to corrosive gases generated in the electroless plating process was a technical challenge. Although there were limitations to a complete transition to a smart factory, the company focused on practical automation based on its pride in having the largest production scale in Korea. It has gradually introduced two automatic stripping facilities for plating transfer bars, automatic chemical transfer devices, automatic product transfer and packaging systems, and non-contact heat recovery drying facilities.

CEO Choi Cheol-soo explained, “With these investments prioritizing industrial safety laws and worker safety, we achieved visible results, improving quality and productivity by 10%.”

The vertical integration strategy to respond to raw material price volatility is also noteworthy. The company reorganized the corporate factory into an existing plating plant and a head office-branch corporate structure, enhancing operational efficiency. It achieved 100% localization of polyester fabric, a major material, significantly reducing supply chain risks. Although essential raw materials for electroless plating such as palladium, nickel, and copper are directly affected by fluctuations in the London Metal Exchange (LME) prices, the company minimizes cost volatility through strategic purchasing and inventory management.

Particularly noteworthy is the achievement of obtaining eco-friendly certification. The company acquired RCS 2.0 certification in November last year. This international certification, which meets the standards for recycled material content, is a case of proactive response to strengthened global environmental regulations. Currently, it is mass-producing eco-friendly products for 10 items in 5 product groups, which serves as an important competitiveness for entering the European and North American markets.

The fruition of a 10-year challenge… Successful differentiation in the automotive market

The background of Ajin Electron's unique position in the conductive fiber market lies in continuous innovation. The company did not remain confined to the EMI (electromagnetic interference) shielding field but boldly ventured into the automotive sector, which no one had attempted, over 10 years ago. At a time when conductive fibers were limited to components for IT devices, the company predicted the advent of the electric vehicle era and embarked on a long-term project to preempt the future market. As a result of focusing on new product development and commercialization in high-spec special fields, it has now established cooperative relationships with more than 10 global automakers, including Toyota and Tesla.

Entering the automotive industry was by no means smooth. Automotive parts require much higher durability and reliability than IT products and must operate stably for over 10 years under extreme temperatures and vibrations. The company invested substantial research and development costs and time to meet these requirements and passed the supply standards of global automakers after numerous tests and verifications.

Currently, Ajin Electron's products are expanding their reach beyond the US, Europe, and China to South America. It supplies products to global automotive production bases in Slovakia, Luxembourg, and Mexico, and is also expanding partnerships with North American and European OEM companies. The company visits major overseas customers more than once a month to discuss collaboration and participates in the IEEE European and Asian exhibitions every time to keep abreast of the latest trends and promote new products.

Targeting the Chinese market… Securing dominance with high-tech products

The entry into the Chinese market is a case that clearly demonstrates Ajin Electron's technological prowess and strategic thinking. Over the past decade, China's technology in conductive fabrics, foams, and tapes has rapidly advanced. In general specification products, it has grown to the extent of standing shoulder to shoulder with Korean companies and is currently holding market dominance through low prices achieved by mass production. The general view in the industry was that a head-on confrontation with Chinese companies armed with low-cost offensives had no chance of success.

However, Ajin Electron chose a different path. The company predicted these market changes years ago and judged that it would not be competitive in the Chinese market with general specification products. Instead, it pursued a strategy of focusing its research and development capabilities on special plating, coating, and multi-products that require high-tech technology with high added value. It shifted its business portfolio to high-difficulty technology areas that Chinese companies cannot easily imitate.

This differentiation strategy led to results that exceeded expectations. It secured a competitive edge not only in the Chinese market, tired of low-cost competition, but also in the global market overall. Notably, there are situations where competitors are requesting OEM and ODM production from Ajin Electron. Competitors that cannot surpass Ajin Electron in terms of technology are recognizing its production capabilities and quality and are requesting cooperation. This is evidence that the company is leading the market not just through price competition but through technological competitiveness. Based on its success in the Chinese market, the company is also considering entry into emerging markets such as India and Southeast Asia.

Leading future technology… Expanding into the drone industry

Ajin Electron's challenge does not stop at the present. The company is actively pursuing research and development to apply conductive fiber technology to the drone industry. Drones have serious electromagnetic interference issues as various electronic devices such as communication equipment, sensors, and batteries are integrated into a small space. Ajin Electron's lightweight conductive material technology can be a key solution to these problems, providing effective electromagnetic shielding while minimizing the weight of drones.

The company's research and development efforts are also recognized externally. In March last year, it was selected as a participating company in the ERC of Gyeongsang National University's Leading Research Center for Core Aviation Technology and has been conducting the 7th-year research project. In April of the same year, it was also selected as a company to carry out the export-oriented task of the SME Technology Innovation Development Project. This project will be conducted until March 2027, focusing on securing technological competitiveness for global market entry. The selection of government-supported projects signifies that the company's technology has been verified even in the public domain.

The growth potential is also confirmed by specific figures. Sales in 2025 are expected to increase by more than 20% compared to the previous year, and with the operation of the corporate factory, sales growth of more than 30% is projected from 2026. The company is also pursuing a KOSDAQ listing in the same year. The listing will not only serve as a means of raising funds but also as an opportunity to enhance the company's transparency and credibility and secure an advantageous position in collaboration with global companies.

In particular, the company plans to distribute the treasury shares secured through the listing to its employees. Having more than 50 long-term employees with over 20 years of service is the company's greatest asset. Investments in employee welfare, such as a high level of salary system compared to the industry and dormitories provided for 10 years, have led to a stable organizational culture. Recently, the company has also been hiring foreign workers to address labor shortages, and they are also working diligently, resonating with the company's vision.

The next goal is also clear. It is to launch its own brand within three years to target the global market. While it has grown through the OEM method of global companies, it now aims to be recognized in the market with its own brand, Ajin Electron. The ambition is to leap forward as a true global manufacturing company with its own brand, not just a contract manufacturing company.


CEO Choi Cheol-soo (pictured) calmly explained the process leading to Ajin Electron's current achievements.

He emphasized, “The continuous development of new products and high-spec special fields beyond the EMI (electromagnetic interference) field has led to today's results,” and “The decision to enter the automotive field over 10 years ago required a lot of effort, time, and cost investment, but we have approached it with the attitude of a pioneer of future technology.”

Regarding the full operation of the corporate factory, he acknowledged that there are technical limitations to a complete transition to a smart factory due to the characteristics of the electroless plating process, but stated that various equipment automation and improvements were achieved based on the pride of having the largest production scale in Korea. He explained that by establishing automatic stripping facilities for plating transfer bars and automatic chemical transfer devices, they responded to the strengthening of industrial safety laws and worker safety while improving quality control and productivity by 10%.

Regarding the strategy for the Chinese market, he explained, “We predicted that general specification products would not be competitive in China,” and “We captured market dominance with a differentiation strategy focusing on special plating, coating, and multi-products that require high-tech technology with high added value.” He mentioned that even OEM and ODM are being conducted at the request of competitors, emphasizing technological superiority. He added that these achievements have led to securing an advantage over competitors in the global market, tired of low-cost competition.

CEO Choi also revealed ambitions for global market expansion. He stated that the company is expanding its areas from the electric and electronic fields to the automotive and sensor fields, extending its reach to South America following the US, Europe, and China.

He added, “We participate in the IEEE exhibition every time and visit major overseas customers more than once a month to discuss collaboration and the application of new field products.”

The future steps of Ajin Electron, armed with continuous innovation and a spirit of challenge, are eagerly anticipated.

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