"Even more Chinese companies are taking up digitalization,” said Siemens Korea Chairman Kim Jong-gap. “Korean companies are seriously mulling over smart factory technology amidst a difficult situation, but they need to pick up speed. The government should no longer separate hardware and software policies in an age of convergence.” 

Chairman Kim’s way of speaking was straight to-the-point. 

Siemens is a leader in the so-called Fourth Industrial Revolution, representing the IoT and big data technologies. 

Chairman Kim expressed worry that Korea may be falling behind in the speed of global technology changes. Kim was apparently alluding to the widening of the technology gap between Germany and Korea compared to five years ago when he was appointed to be the first Korean Siemens CEO. 

Chairman Kim’s 2018 scheme to team up with such Korean companies as Hyundai Wia to build smart factories was based on his hope of playing a part in transferring technology to Korea. 

“Starting next year, Adidas will set up a smart factory, bringing back a production center to Germany from Vietnam. A factory outfitted with IoT and big data will be able to churn out quality products faster since all things can be handled by machines,” he said.   

“The day will come when companies do not relocate their factories to developing countries because of cheap labor, if they are armed with the smart factory regime,” Chairman Kim opined. Chairman Kim noted that China is aggressive in setting up smart factories, and Korea now has to translate smart factories into action.

China has announced a grandiose scheme to raise its manufacturing technology capabilities to the same level of Japanese manufactures by introducing advanced technologies. One of the problems Korea is facing is a shortage of software manpower. In this regard, Chairman Kim made it clear that his company will invest in Korean startups. 

Siemens Global recently inaugurated “Next 47,” a department to exclusively handle investments in global startups. This move is designed to develop startups with innovative ideas by investing 1 billion euro (1 trillion won) over the next five years.

Joint research into Korean startups and investments are under consideration, Chairman Kim said. The areas in which Siemens Korea has keen interest are artificial intelligence, IoT and big data, he added. 

“Short-term, we want to predict what the world will look like 25 years from now,” he said. Siemens Korea is striving to draw up growth strategies through inside development and M&As, he added. 

Kim passed the 17th higher administrative examination and held such public positions as the commissioner of the Korea Intellectual Property Office; the first vice minister of the Ministry of Trade, Industry and Energy; vice chairman of the Korea Semiconductor Association; and president of Hynix Semiconductor before taking office as chairman of Siemens Korea in 2011.