-Establishment of the "Sleep Industry Promotion Center" for the creation of a sleep industry ecosystem
-Pursuing new business ventures in "carbon verification," including carbon footprint, CBAM, RE100, and CFE (carbon-free energy)
□ The Korea Testing Certification Institute (KTC, President An Seong-il) has set its core values as "Safe and Reliable Society," its vision as "A globally competitive testing and certification organization leading the digital and green transformation of industries," and its management goal as "Corporate Growth, Regional Innovation, and Trade Power" as of January 2023 (refer to Figure 1 below).
<KTC Gunpo Headquarters Overview>
□ To achieve these management goals, KTC has identified and is implementing a roadmap for 13 strategic areas in three major sectors: "Digital Transformation," including semiconductors, software, 5G, smart appliances, and intelligent robots; "Green Transformation," covering electric vehicles, batteries, renewable energy, hydrogen, and carbon reduction; and "Future Growth Industries and Nationally Important Industries," focusing on biohealth, materials, parts and equipment, defense industry, and aviation (refer to Figure 2 below).
<KTC Management's 13 Strategic Areas>
□ In the "Digital Transformation" sector, KTC has strengthened its testing and certification capabilities in the semiconductor field, conducting R&D on integrated sensors and display semiconductor modules since last year. Collaborating with related organizations such as Gyeonggi Province Semiconductor Innovation Network and Gyeonggi Economic Science Promotion Foundation, KTC has established a cooperative network. This year, with the anticipated increase in demand for system semiconductors and battlefield components due to the transition to future automobiles, KTC is working on the "Establishment of a one-stop evaluation support system for vehicle semiconductors and battlefield components," supporting the performance evaluation, research and development, and reliability improvement of companies related to system semiconductors and battlefield components to foster the domestic system semiconductor industry (refer to Figures 3 and 4 below).
<Evaluation Support System for Vehicle Semiconductors, Modules, and Systems>
<KTC-Gyeonggi Business&Science Accelerator MOU>
In the "Software and 5G" sector, KTC, as the only testing and certification organization operating at the headquarters level in the field of information and communication, leads in areas such as IoT and medical device cybersecurity testing. KTC provides certification services for information protection, including CC (Common Criteria) evaluation of information protection systems, GS certification for software quality, and IoT security certification for information and communication network connection devices. In response to the strengthened CE certification regulations in Europe, KTC has been designated as a testing institution by global certification bodies such as NEMKO and TUV, supporting Korean exports with test performance certificates issued domestically, obtaining the CE mark. This year, KTC will continue to actively support the expansion of overseas exports for Korean companies by registering with KOLAS, an international accredited testing laboratory, for additional cybersecurity labeling for consumer IoT devices in North America. Additionally, KTC will perform various electronic medical device tests and consulting based on the tasks assigned by the Ministry of Food and Drug Safety to establish itself as a specialized testing institution for IoT/medical device cybersecurity in Korea (refer to Figures 5 and 6 below).
<Cybersecurity Testing Scene>
<KTC-NEMKO MOU>
□ Regarding the "Green Transformation" sector, in the "Hydrogen and Carbon Reduction" field, KTC is conducting a safety demonstration project for city gas pipelines with hydrogen blending conditions in collaboration with the Korea Gas Safety Corporation since last year to achieve the national greenhouse gas reduction target. This year, KTC is planning to establish infrastructure for "simultaneous testing and certification of hydrogen vehicle chargers' measurement and safety" at on-site charging stations to secure a fair trading base for hydrogen and ensure safe usage. In addition, KTC has been selected through competition for the "Clean Hydrogen Certification Testing and Evaluation Institution" project initiated by the Ministry of Trade, Industry and Energy. KTC will perform preliminary reviews and pilot certification tests related to clean hydrogen for approximately three years starting this year. In connection with this, KTC will play the role of a "carbon verification institution" in the carbon field, supporting Korean companies preparing for the EU carbon border adjustment system and ESG disclosure scheduled for implementation in 2026, leading the transition to a clean and green energy society (refer to Figures 7 and 8 below).
<Outlook on the Hydrogen Industry Market>
<Carbon Management Consulting Institution - KTC>
□ In the "Future Growth Industries and Nationally Important Industries" sector, in the "Biohealth" field, KTC has become the first in Korea to be designated as a testing institute and MDR auditor through a business agreement with ECM, a certification body for medical devices. With this achievement, KTC aims to actively support Korean companies in obtaining certifications and entering the European medical device market, which is estimated to be worth approximately EUR 150 billion (around KRW 210 trillion) as of 2021. Moreover, with growing global interest in the importance and quality of sleep, KTC has collaborated with local governments, institutions, and hospitals to establish a verification base for the sleep industry. In commemoration of World Sleep Day, KTC plans to open the "Sleep Industry Promotion Center" in Asan, Chungnam on March 15th this year. Through direct operation, the center will support the verification, safety, and performance evaluation, as well as certification of sleep products, contributing to increasing consumer trust in sleep-friendly products and promoting the success of businesses (refer to Figures 9, 10, and 11 below).
<Medical Device Testing Scene>
<Sleep Industry Promotion Center Overview>
<Testing Scene in the Sleep Industry>
□ Lastly, through the "Sherpa" strategy, KTC aims to expand its foundation in the overseas testing and certification market, enhance international cooperation utilizing its global network with 67 institutions in 36 countries. To achieve this, KTC plans to secure additional overseas bases in Germany (Frankfurt), Vietnam (Hanoi), and the United States in addition to its current local subsidiaries and testing facilities in China (Shanghai, Shenzhen), Indonesia (Jakarta), and the UAE (Dubai). Building on its experience as the first testing and certification body to carry out ODA projects since 2015, KTC aims to go beyond consulting roles in technology and institutional transfer to developing countries and provide "ODA package services" by offering testing institution designation, delegated operation, and other services in conjunction with the establishment of local testing facilities, creating a stepping stone for Korean companies to enter foreign markets (refer to Figure 12 below).
<Current Status of KTC's Overseas Business Agreements>
