"Juergen Koenig, President of Merck Korea, supplicate the gods to protect every part of the Merck Advanced Technology Center's journey in Korea on May 4, 2010," said the captain of Merck-Pae at the inauguration ceremony before burning the paper to proceed a Korean traditional ritual called "gosa". Merck's inauguration was special in a sense that everyone was involved to share happiness together as a family.
Merck showed Korean traditional performances (Sa-mul-nol-ee) and showed a great performance after gosa, or a special ritual often conducted by Korean families who wish for peace and avoidance of disaster. Bernd Reckmann, Executive Board Member of Merck KGaA said, "Merck is culture and value driven corporation with 342 year history. Today's inauguration shows our commitment to Korea and a strong will to further strengthen our bonds."
Merck, the world's leading supplier of liquid crystals and the oldest pharmaceutical and chemical company worldwide, invested KRW 14 billion (EUR 11 million) during the last two years to establish its state of the art Advanced Technology Center at Poseung-Eup, Pyongtaekshi (Gyonggi-Do). Dr. Frank Stangenberg-Haverkamp, Chairman of E. Merck KG, Kim Kyung-sik, Deputy Minister of the Ministry of Trade and Investment, Dr. Hans-Ulrich Seidt, Ambassador of Germany, and many other VIPS attended the inauguration ceremony to share happiness together as a family.
Merck Advanced Technology Center has grown as a tree from a seed that was planted back ten years ago. In 2002, Merck established a production company, Merck Advanced Technologies Ltd. to consolidate its liquid crystals business as well as all operational activities. This initial investment eventually grew tall as the Merck Advanced Technology Center today.
The newly inaugurated five-story Advanced Technology Center with state of the art R&D laboratories as well as fundamental reliability laboratories and will allow Merck to further strengthen its position as the leading supplier for the innovative and dynamic liquid crystal display industry; additionally, the company will be able to diversify its range of products in the field of New Technologies.
Juergen Koenig said at the opening speech, "Merck will continue supporting its partners' success by following its customer centric strategy. We research and develop high technologies according to our customers' needs and expectations and this is the key factor for a successful partnership. We develop today what our customers will apply tomorrow."
The President noted that Merck is investing globally in the fields of display, photovoltaics, and solid state lighting. "In Korea, Merck even invested during the uncertain times of the recent global economical crisis. This reconfirms Merck's commitment and responsibility to contribute with innovative solutions for the future success of the Korean display industry," he said.
Merck is known as an environment leader as well. As a R&D driven company, "Merck, also offers feasible solutions for the appropriate reutilization of liquid crystal displays to create the right balance between innovation and respect," Mr. Koenig added.
What is the significance of this inauguration to Korea
Deputy Minister of the Ministry of Trade and Investment, Kim Kyung-sik, noted the Korean's perspective of the opening of Merck Advanced Technology Center. "I would like to express my appreciation to Merck, a global chemical and pharmaceutical company based in Germany, for choosing to establish this R&D center here in Korea at a time when many companies are scaling back on investment due to the recession. Merck has contributed much to Korea's growth since it first established a presence here in 1989, and I hope the new R&D center will be mutually beneficial for Merck and Korea."
He continued, "As you are well aware, the world has now entered the age of unlimited competition. Only those who identity trends early, and respond quickly, can survive.
We are also in the age of Open Innovation where the previous strategy of 'standing alone' no longer works. One company standing alone cannot carry out excellent research. The securing of technology through R&D and global collaboration in R&D are the strategies that will allow businesses to thrive amid global competition.
With its core research focus on liquid crystals displays and OLED's, the new center will produce excellent technologies which will give Korean companies a platform to produce high-quality finished goods. Merck, for its part, will benefit from steady market demand. Furthermore, the center will be working on photovoltaic energy-an area in which Korea has keen interest as part of our green growth initiative. There is enormous potential for cooperation here, and the Korean government has high expectations."
Korea's R&D status and policy direction
The Korean government is implementing various policies and initiatives to expand investment in R&D.
The proportion of R&D investment against GDP stood at about 3.4 percent in 2008, but the government plans to increase this figure to more than five percent by 2012. The government is also expanding support in the form of tax benefits to vitalize investment. Companies can save on corporate or income taxes if they put money into R&D facilities or buy patents from other companies.
Tax benefits for investment in R&D into growth engines or original areas of technology have been expanded to 20 percent as of this year. Last year the rate was only five percent.
The Ministry of Knowledge Economy has allocated KRW4.4 trillion for R&D this year. Of that amount, 32 percent will support corporate R&D activities. Deputy Minister Kim added, "The Ministry's R&D projects are equally open to domestic and foreign participation. The Korean government hopes the establishment of this new R&D center is the beginning of more intensive investment in Korea on the part of Merck, and that its presence will attract more foreign investors of comparable stature."
New challenge begins with loyal networks
President Juergen Koenig at the press room clued the upcoming challenge for another innovation. "We left the fourth floor empty for new business. Profit is not our immediate interest, our focus is rather on creativity and history," he said. Many friends of Merck shared congratulatory message via on site and or by video clip. Merck's family members and close friends including ambassador of Germany all have shown a sincere effort to respect Korean language by sharing part of messages in Korean.
Jung, In-jae, Executive Vice President of LG Display also took a part to share the moment of joy. "With Merck's strong liquid crystal technologies and resources, we at LG Display successfully developed a host of new technologies and new products, sweeping over the global LCD market. I think the strategic cooperation between Merck and LG Display is far more important from now on. I hope today's inauguration of Merck's ATC will serve as a momentum to further cement our ties in developing a higher level of technologies and products."
Executive Vice President Lee Won-shik of Samsung LCD Development Center further stated, "Throughout Samsung LCD's history, your close and active support was essential for us to develop and manufacture high-quality panels for the IT and TV industries. Thank you very much to all our friends at Merck. In this dynamic and exciting field, continued partnership between Merck and Samsung will be very important and I am very confident that your new Advanced Technology Center will again be instrumental in further enhancing the collaboration between us."
