[KIDP Ulsan] Hancom Ubi Micro: “Committed to Ensuring Safety in Industrial Sites”

[IT DongA x Ulsan City x Design-driven Manufacturing Innovation Center] The Korea Institute of Design Promotion(KIDP) has set up the 'Ulsan Design-driven Manufacturing Innovation Center' at the University of Ulsan. The center helps promising SMEs and startups in the region strengthen their design competitiveness. IT DongA introduces companies selected for the 'Design-driven Manufacturing Innovation Support Project' and supports their efforts to expand.

Chemical accidents in industrial sites are extremely dangerous as they can be life-threatening. According to the Korean Ministry of Employment and Labor, there have been 476 chemical accidents in industrial workplaces over the past five years from 2015, resulting in 25 fatalities and 319 injuries. Furthermore, accidents involving hazardous chemicals not only cause human casualties but also lead to environmental pollution, which can develop into severe issues. Most chemical safety accidents that result in casualties are caused by 'toxic gas leaks' and 'acute poisoning.' Therefore, proactive prevention efforts and safety measures are crucial.
Hancom Ubi Micro specializes in industrial safety ICT solutions and develops gas detectors capable of detecting and measuring invisible harmful gases. It also develops multi-gas detectors equipped with wireless communication technology tailored for industrial sites, enabling comprehensive monitoring.

Hancom Ubi Micro’s flagship product: wireless communication-based Health, Safety, and Environment (HSE) integrated monitoring solution/ Source: Hancom Ubi Micro


Ensuring Safety through the Detection of Harmful Gases in Industrial Environments

IT DongA: It's a pleasure to meet you. Could you please introduce Hancom Ubi Micro to us?

Minjun Kim, CEO (hereafter referred to as "CEO Kim"): Established in March 2012, Hancom Ubi Micro is an ICT technology company that provides system solutions in safety, environment, and facility fields necessary for industrial sites by integrating Internet of Things (IoT) communication technology and sensor technology. Since early 2015, we have collaborated with the Electronics and Telecommunications Research Institute (ETRI) to develop solutions for industrial sites using 'LoRa (Long Range)' wireless communication technology. Additionally, we are developing wireless communication solutions that can be applied to various environments by integrating commercial networks (such as LTE) as needed.

Minjun Kim, CEO of Hancom Ubi Micro / Source: IT DongA

*LoRa: LoRa (Long Range) is a low-power wide-area (LPWA) communication technology that facilitates communication between devices. Compared to other networks, it allows for long-distance communication with low power consumption, making it ideal for dedicated Internet of Things (IoT) networks.

Industrial sites differ significantly from our everyday environments. They often have harsh conditions, with a complex structure of various facilities, confined spaces, and communication dead zones, making seamless wireless communication challenging. Even when attempting to install wireless communication systems, more repeaters, beacons, and other devices are needed, which requires additional costs and time. Furthermore, even if a wireless communication system is established, the introduction of new equipment or facilities can disrupt communication. In simple terms, communication dead zones where calls cannot be made are inevitable.

Enclosed space examples: manhole, sewer pipe interior, power plant boiler interior (from the left) / Source: Hancom Ubi Micro

IT DongA: So, you mean there are many areas or spaces in industrial sites where phone communication is not possible?

CEO Kim: Let me give you examples. Tasks like working within manholes, navigating sewer pipes underground, or conducting operations inside power plant boilers, as well as constructing large ships with thick steel plates, all involve inherently enclosed spaces. As a result, wireless communication with the outside is cut off. Imagine if a worker enters such a confined area alone and unknowingly becomes exposed to gas and loses consciousness. Even if the gas detector the worker is wearing sounds an alarm, those outside won't be aware of it. This can lead to potentially fatal situations.

IT DongA: It appears that relying solely on conventional equipment that sounds an alarm when gas is detected may not be sufficient to fully prepare for dangerous situations. Is that why you integrated technology that enables communication with the outside?

CEO Kim: Exactly. The factory zone-specific LoRa we developed is different from typical LoRa. Standard LoRa is a centralized network where all device data is gathered in one place for management. In contrast, our factory zone-specific LoRa functions as a mesh network that enables direct communication between devices. Data from each device is relayed by nearby units and then transmitted to a central hub. Each device performs both its primary function and acts as a relay, ensuring seamless communication within the complex factory environment.

LoRa communication networks and gas monitoring systems have been established in Ulsan National Industrial Complex. / Source: Hancom Ubi Micro

LoRa communication networks and gas monitoring systems have been established in Yeosu National Industrial Complex. / Source: Hancom Ubi Micro

Industrial sites may contain flammable gases that can ignite even with a small spark. When electronic devices operate, they generate sparks and heat, posing a risk of explosion accidents if not properly managed. To prevent such disasters, it is essential to obtain certifications for intrinsic safety and explosion protection. The certifications, such as KCs, IECEx, and ATEX, guarantee that any sparks and heat generated during electronic circuit or component operation remain below the ignition threshold, and that the external casing is designed to prevent static electricity buildup. In April 2022, Hancom Ubi Micro introduced a gas detector that received these certifications, assuring safer operations in hazardous industrial environments.

The wireless multi-gas detector ‘UEPL100Exi’ obtained intrinsic safety and explosion-proof certifications including KCs, IECEx, and ATEX. / Source: Hancom Ubi Micro

Aiming to Create Something Beneficial for Society

IT DongA: Your company is now in its 11th year since its establishment. You must have gone through a lot during this time.

CEO Kim: I always had this one wish - to create something beneficial for society. While it’s important to work on projects that companies want, I hoped to develop something that society actually needed. However, I soon realized that achieving this alone was impossible. No matter how skilled you are, there's a limit to what you can handle. Working tirelessly alone has its limits.
That realization pushed me to start my own business. At first, it was a one-person company, but over time, it began to expand. We faced numerous challenges along the way. The issues were different from those faced when working alone. There were concerns I hadn't previously considered, such as organizational management, operations, and talent acquisition. Additionally, our funds were starting to run low, and looking back, it was indeed a tough time.
I began to seek breakthroughs to keep moving forward. We thought about what tasks we could undertake and what hurdles we could tackle. We reached out to Ulsan City, Ulsan Technopark, Ulsan ICT Promotion Agency, and the Electronics and Telecommunications Research Institute (ETRI) to find research and development projects. Through these projects, we slowly but surely found our direction, and in 2015, our collaboration with ETRI marked the growth of Hancom Ubi Micro into what it is today.
IT DongA: Could you give us a bit more detail on that?

CEO Kim: At that time, ETRI and Ulsan City were researching and developing an industrial environmental safety system. Ulsan is home to large factories that produce chemicals, ships, and automobiles, which pose numerous hazards such as suffocation, gas leaks, explosions, and fires. The goal of the research project was to figure out ways to detect and respond to these industrial hazards in advance.

CEO Kim presents his company’s products and services. / Source: IT DongA

Communication proves impossible within the confines of large ships under construction. In these environments, regular patrols must be conducted at set intervals to ensure worker safety. Safety checks, including gas inspections, are mandatory. However, patrol personnel are also exposed to the same dangerous spaces. Thus, communication becomes crucial. Recognizing this need, we embarked on developing LoRa technology tailored for industrial sites. Our initial research item was a sensor for data collection. We explored ways to connect sensors capable of detecting various gases to LoRa, allowing data to be received externally.
This was not an easy task. When we approached existing gas detector manufacturers with our requirements, they told us that developing such a feature would be difficult. So, we decided to do it ourselves. Finally, we found a way to incorporate communication capabilities into gas detectors.

The monitoring system displays the data of gas concentrations measured and wirelessly transmitted by the gas detector installed on-site/ Source: IT DongA

IT DongA: Developing a product that wasn't available in the market must have attracted a lot of interest.

CEO Kim: Not exactly. It was a different challenge. We believed we had developed a much-needed and safer product, but convincing the field of its necessity was a different issue. Initially, most reactions were along the lines of "We don't need it." The field preferred the familiar equipment they were already using. Changing this perception was not easy.
Then, a major corporation showed interest in our product. They requested to test it on-site. We took a prototype to them. After testing, they expressed their intention to purchase the product and acknowledged its necessity.

Hancom Ubi Micro's battery-extended wireless multi-gas detector installed in an industrial site, 'UEPL-BT100' / Source: Hancom Ubi Micro

IT DongA: This sounds like good news. Recognition of Hancom Ubi Micro's technological capabilities and signing sales contracts.

CEO Kim: Well, it's not exactly like that. We've just finished developing the prototype, you see. That means we're not yet at the mass production stage. At the time, the purchasing condition from Company H was as follows: they would start using the prototype immediately but would consider switching to the product after mass production. Of course, it's quite an achievement for a startup that's just been established to receive such an offer from a major corporation. However, we had to make a choice. Mass production entails investing more in terms of both cost and time. Developing a prototype and establishing mass production are significantly different. It was a crossroads of choice. The initial response from the field wasn't as favorable as expected... Should we stake everything on this? We deliberated intensely and finally decided, "Let's go this way."

Hancom Ubi Micro's mountable suction-type multi-gas detector installed at shipbuilding sites, 'UFMA 200' / Source: Hancom Ubi Micro

Seizing Opportunities Alongside Increased Industrial Safety Awareness

IT DongA: Indeed... I can relate. Unlike software companies, hardware manufacturing companies inevitably face greater burdens. Considering the costs, time, and manpower involved, it's an area that requires substantial initial investment. How did things unfold afterward? It's unlikely that it was all smooth sailing like in a drama, right?

CEO Kim: You're right. The situation didn't suddenly change like in a drama. While Company H's interest persisted, not every other company showed interest. It was a moment of realization that developing a product and selling the developed product are two different things. From 2018 to 2021, it was a series of ups and downs.
Fortunately, our product's necessity was recognized. In 2019, we received seed investment from Rotech Engineering after our product's potential was acknowledged. Through collaborations with Ulsan City, ETRI, and others, we upgraded our product. We enhanced our product reliability by obtaining ISO 9001:2015 Quality Management System certification, international explosion-proof certification (IECEx), and European explosion-proof certification (ATEX). We also gained experience by implementing gas monitoring systems for SK Specialty (formerly SK Materials), Korea Midland Power Co., Ltd., and Korea South-East Power Co., Ltd. at their nationwide facilities.

CEO Kim presents at the Yeosu Petrochemical Safety Committee / Source: Hancom Ubi Micro

IT DongA: Selling products is indeed a new challenge.

CEO Kim: Amidst that, we heard a few positive signals. There has been growing interest in strengthening safety management at industrial sites, thanks to the amendment to the Industrial Safety and Health Act in 2018 and the enforcement of the Serious Accident Punishment Act starting in 2021. The amendment allowing the monitoring of industrial sites using ICT technology served as a catalyst. Though somewhat slow, this change in perception had a positive impact on us as well.

*Revised Article 619-2 of the Industrial Safety and Health Standards enacted on May 28, 2021 (Measurement of Oxygen and Hazardous Gas Concentrations): Before allowing workers to work in a confined space, the employer must evaluate whether the oxygen and hazardous gas concentrations in the confined space are maintained at appropriate levels by measuring them (including remote measurement using wireless facilities or wireless communication as defined in Article 2, paragraph 1, subparagraphs 5 and 5-2 of the Radio Waves Act; the same applies to Articles 629, 638, and 641).

Our business network has also expanded. We've established a foundation for sales by collaborating with distributors of industrial safety equipment in large industrial complexes across various regions. Demonstrations comparing the performance of our gas detectors with those of competing products have become more frequent. We have conducted tests that directly compare the features and performance of our products with those of competitors commonly used at industrial sites, highlighting the superior capabilities of our products.

CEO Kim presents at the Ulsan Fire Department. / Source: Hancom Ubi Micro

Our collaboration with telecommunications companies has also progressed. Our gas detectors and communication equipment, which utilize wireless communication technologies such as LoRa and LTE, have found mutually beneficial opportunities with these companies. In February 2021, we signed a significant contract with HD Hyundai Mipo Dockyard to build a gas monitoring system. This was followed by consecutive contracts with other Hyundai affiliates, including Hyundai Samho Heavy Industries and Hyundai Heavy Industries, to implement monitoring systems. In September 2021, our key product was also designated as a venture startup innovation procurement product by Venture Nara, an e-procurement platform run by Korea’s Public Procurement Service.

LoRa Multi-Link Gateway is tested at company L's chemical plant. / Source: Hancom Ubi Micro

Starting as a one-person enterprise and growing into a group subsidiary

IT DongA: In July 2022, you joined the Hancom Lifecare subsidiary and became part of the Hancom Group. You also changed your name to Hancom Ubi Micro.

CEO Kim: In 2017, we learned belatedly about Hancom Group's acquisition of Sancheong, a company established in 1971, renowned for its competitiveness in the personal safety equipment market, including respiratory devices, masks and protective clothing. It was intriguing to see a leading software company like Hancom acquiring Sancheong. However, I felt a bit disappointed because among the various safety products, from respiratory devices, masks to protective clothing, there were no gas detectors. I was thinking, "Wouldn't it be better if we added our developed gas detectors?"
Meanwhile, during a meeting with ETRI, I casually mentioned my thoughts, expressing regret about the absence of gas detectors in the product line of Hancom Lifecare. This unintended remark caught ETRI's attention, prompting them to immediately introduce us to Hancom. That's how it all started.

IT DongA: It’s somewhat different from the story I was expecting.

CEO Kim: We were surprised too. In late 2021, we met Hancom for the first time. We introduced our gas detectors and communication equipment. Subsequently, we received invitations for further meetings. The second time, over ten people awaited us, and the third time, in early 2022, there were over thirty attendees, including representatives from Hancom Lifecare's research center, sales team, and various production departments. It felt like a congressional hearing. We were bombarded with numerous questions, from the backstory of developing LoRa-integrated gas detectors to our sales strategies, annual revenue and to technological advantages.
When asked about our unique technological capabilities, I replied, "While we have unique technology from joint research with ETRI, I can't claim that only we possess it. However, our experience and skills in developing, manufacturing and selling products are unparalleled."

By Kwon Myoung-kwan (tornadosn@itdonga.com)