IFEZ Journal

ESSYS, a Leader in Automotive Electric Devices & Parts Based on Endless 

Exploration of Creative Technologies

While the world is stepping up research and development to improve the technologies of self-driving cars, which are at the forefront of the 4th industrial revolution, there is a company that is striving to find new possibilities based on its own proprietary technology. This company is ESSYS, to be featured in this issue in order to showcase how it is leading the automotive electric devices & parts industry through endless research on technologies under the motto “Imagination becomes the future.”

A Company Ranking First in the Domestic Automotive Electric Devices & Parts Market Based on Its Own Original Technologies

The emergence of next-generation automobiles has completely changed the paradigm of the automobile industry. According to the International Energy Agency (IEA), the cumulative number of electric vehicles distributed worldwide as of 2022 exceeded 10 million and is expected to increase to 230 million by 2023. ESSYS, specializing in automotive electric devices & parts, is known as a company that has prepared for the future by noticing changes in the automobile industry. At the beginning of the business, the company focused on a business structure related to electric components, such as Hi-Pass terminals and automotive Bluetooth, eventually occupying about 70% of the domestic Hi-Pass terminal market and ranking first in the industry. However, the company did not want to be complacent about it; ESSYS has been solidifying its position as the No. 1 domestic market share in the electronic communication sector by expanding its business into the 5G-based mobility that will lead the future industry. In particular, the company has the original technology related to V2X (vehicle to everything) that enables wireless communication for vehicles. V2X is a technology that enables communication with vehicles on the road and infrastructure, such as base stations, and it is considered one of the core technologies forming the basis of autonomous driving.

ESSYS looked to the future and boldly invested, eventually obtaining its own original technologies. Currently, the company is investing up to 15% of its sales in R&D to secure original technologies. Based on endless exploration of technologies, ESSYS has participated in the “Smart Connected and Automated Driving Road System Construction Project” with the Ministry of Land, Infrastructure, and Transport and Korea Expressway Corporation since 2014. Since launching a self-driving network pilot project called “C-ITS” (Cooperative-Intelligent Transport System), the company has expanded it into a demonstration project hosted by the Ministry of Land, Infrastructure, and Transport (in 2017), and has been conducting the main project since 2021. This means that ESSYS is the only domestic self-driving vehicle-related company to be recognized for its technologies accumulated over the years by participating in government-led projects. ESSYS has been producing various electronic parts at its factory (including a head office and research center) in Songdo, along with the 2nd and 3rd factories completed in the Saemangeum Industrial Complex. Through it all, ESSYS’ constant challenge for new possibilities remains at the forefront.

ESSYS, a Leading Company Specializing in Electric Devices & Parts by Building a Smart Factory

ESSYS’ major items include Bluetooth/Wi-Fi communication modules for vehicles, ETCS (Electronic Toll-collection System) Hi-Pass terminals, V2X terminals, BDC (Body Domain Control), DCU (Date Communication Units), etc. which are supplied to representative partners like Hyundai, Kia, and Hyundai Mobis in the form of finished products. Transactions with Hyundai Motor Group account for the largest portion of the company’s total sales, and it is currently promoting a project based on autonomous driving systems with Hyundai Motor Group. All of ESSYS products are produced through efficient processes implemented in a smart factory. All processes are designed based on an automated system with minimal human intervention to minimize defects and produce high-quality outcomes. ESSYS is rapidly changing in line with the era of diversification; however, there is one philosophy that has been followed for 18 years: “A good product is eventually made by excellent talents.” The company is making every effort to create jobs while upholding this belief, and it recently hired local talents based on an MOU with Yeonsu District Office, Incheon Metropolitan City.

MINI INTERVIEW

Kim Yong-beom

CEO of ESSYS

Hello, would you please give us a brief introduction of ESSYS?

Established in 2005, ESSYS is a company specializing in IT electric components for automobiles and holds the largest domestic market share in the electronic communication sector. While leading the development and demonstration projects for 5G-based autonomous driving and the next-generation intelligent transportation system (C-ITS), we also produce various components, such as Hi-Pass terminals, Bluetooth/Wi-Fi modules, etc. Now, we have our head office and research center in Songdo International City, along with a factory in Saemangeum Industrial Complex.

Can you please introduce the core source technologies of ESSYS?

ESSYS’ main source technologies include Bluetooth/Wi-Fi, WAVE, and LTE/5G mobile communication technologies. ETCS, V2X, and S2X communication terminals are representative products based on WAVE. Among them, “ETCS” products account for more than 70% of genuine Hi-Pass terminals for Hyundai and Kia Motors. Particularly, “CAN-linked ETCS,” which enables payment without a Hi-Pass card, is a Hi-Pass terminal jointly developed with Hyundai Mobis and is set to win the “IR52 Jang Young-sil Award” in August 2023. V2X products based on WAVE communication are implementing V2X communication services nationwide in cooperation with the Korea Expressway Corporation and local governments. In addition, we succeeded in localizing, mass-producing, and supplying eco-friendly and high-efficiency brushless motors (BLDC) for the first time in Korea, which had been entirely reliant on imports for domestic finished vehicles. 

Is it correct that, in 2021, ESSYS had a good opportunity to enter the overseas market by signing a supply contract with VinFast, a Vietnamese automobile company? What are the prospects for developing inroads into overseas markets?

Global interest in the issue of eco-friendly vehicles is gradually growing, day by day. ESSYS, which developed wireless communication modules, has been striving to find overseas customers based on its competitiveness in delivery and quality. Thanks to such efforts, in 2021, we finally signed a contract to supply vehicle-mounted communication parts worth hundreds of billions of won with VinFast, Vietnam’s first finished car company. In the future, the application of our products will be expanded to the lineup of mid- to large-sized electric vehicles produced by VinFast. Once the 2nd and 3rd factories in Saemangeum are on track, we plan to advance more actively into overseas markets. 

What is the next step for ESSYS in the future?

Keeping pace with the ever-changing world, we will strive to secure more unrivaled source technologies through relentless research and development activities. In addition, we are preparing to be listed by actively attracting investment. ESSYS will always strive to be the best company that quickly grasps customer needs and smartly leads the automobile parts market.