COMPANY
Leader in the localization of parts, YEONHAB PRECISION
Performance of development for localization
Performance of Yeonhab Precision’s localization
With the goal of localizing the parts for defense equipment, Yeonhap Precision Yeonhap Precision has successfully completed the localization of 3,153 core parts for 40 years.
These passions and endless effort in localizing core parts by Yeonhap Precision are realized with the fantastic performances.
- Localization of core parts by Yeonhab Precision
- ① Contribution to the national defense through the development of
core parts for Korea’s weapon system - ② Saving of 99.2 billion Won in national defense budget through
localization of parts - ③ Creation of jobs for 450 people
- ④ Export of products worth at least 12% of the total sales
Saving of defense budget amounting to 99,217 million Won through the 37localization
| Items for localization | After localizationNumber of total items for delivery | Amount after development (in million Won) | Saving in national defense budget | ||
|---|---|---|---|---|---|
| Revenues | Amount of deliveries | Saved amount | |||
| Localization of inventory no.37(Cable assembly)) | certificate of development1,157items | 359,942 | 260,725 | 99,217 | Compared to the conventional unit priceSaving of foreign currency amounting to 99,217 million Won through localization |
- ○ For the self-defense and operation of weapons system, the localization of parts is required.
- ○ For the export of weapons system, the localization of parts shall be first established.
- ○ The localization of parts is the best alternative for the creation of job in Korea.
Certificates of localization and R&D
| By development | No. of R&D certificates issued by year | |||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1984 | 1985 | 1987 | 1989 | 1990 | 1991 | 1992 | 1993 | 1994 | 1996 | 1997 | 1998 | 1999 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2012 | 2014 | 2017 | 2020 | Total | |
| 37Development | 113 | 98 | 37 | 38 | 227 | 126 | 25 | 174 | 150 | 32 | 14 | 123 | 1,157 | |||||||||||||||
| Localization of parts | 2 | 5 | 2 | 12 | 1 | 8 | 1 | 1 | 5 | 1 | 2 | 1,478 | 11 | 228 | 5 | 38 | 2 | 31 | 2 | 9 | 10 | 5 | 1 | 15 | 1,875 | |||
| Development for localization | 10 | 10 | ||||||||||||||||||||||||||
| EPD CABLE | 93 | 93 | ||||||||||||||||||||||||||
| Development led by suppliers | 16 | 1 | 17 | |||||||||||||||||||||||||
| Development of maintenance capability | 1 | 1 | ||||||||||||||||||||||||||
| Total by year | 2 | 5 | 2 | 12 | 1 | 18 | 1 | 1 | 5 | 1 | 2 | 1,478 | 11 | 341 | 119 | 75 | 133 | 258 | 128 | 35 | 184 | 155 | 33 | 14 | 123 | 1 | 15 | 3,153 |
Effect of expanded localization and development (common in defense industry)
Localization formula which contributes to the activation of localization
- ○ Parts localization rate formula satisfies the parts localization rate of 70% rather the localization in name only as almost all processes shall be localized ranging from parts design to the production and supply
- ○ Period when the parts localization was active the most
Starting point of parts localization
- ○ Mr. Yoon Gwang-Woong, former minister of national defense (Chosun Hotel)
- - Worsened profit due to the use of imported parts
- - Government’s implementation of policy for strong localization of parts
- ○ Development for localization of 120,000 parts (items for localization)
- ○ Expansion of Yeonhab Precision’s facilities and full efforts for localization of parts