"Through IPO preparation, I came to understand the company's capabilities. By identifying the company's strengths and weaknesses, including technological prowess and management practices, and supplementing what was lacking, it became an opportunity to transform into a completely new company."

On the 13th, Kim Yong-gyu, CEO of TOS Inc., a semiconductor inspection equipment manufacturer based in Osan, Gyeonggi Province, made this statement. Through support from a management advisory panel for IPO preparation, the company has developed the capabilities to grow into a global enterprise.

■ SME Growth Requires System Building and Inter-Company Collaboration

The management advisory panel project, which the Korea Business Council for Sustainable Development (hereinafter "KBCSD") is promoting as part of its mutual growth initiative, is expanding its footprint by supporting SMEs in resolving management challenges and strengthening competitiveness.

Huh Chang-soo, Chairman of KBCSD, stated, "As companies grow, system building becomes essential. If SMEs utilize large companies' know-how like a bible, they will be able to build their capabilities," and emphasized, "Mutual growth is ultimately something that 'companies' do. The KBCSD Management Doctor System, where large enterprises, SMEs, and management advisory panels collaborate to support company growth, is a model case of mutual prosperity."

TOS Inc., supported by KBCSD, is a company that develops, manufactures, and supplies semiconductor and display equipment components. Meeting technological exception requirements and enhancing enterprise value, it is targeting a KOSDAQ listing in 2024. TOS Inc. holds patents for original technology in ultra-high-speed multi-channel plasma sensing devices and has achievements such as being the first in the world to develop sensing modules used in semiconductor ALD (Atomic Layer Deposition) processes.

CEO Kim Yong-gyu of TOS observed many technology companies growing into mid-sized enterprises through public offerings in recent years and, with confidence that the company's technological capabilities would enable an IPO, applied for the KBCSD Management Doctor System together with strategic partner SEMES.


Advisory Member Jo Yeon-gu assessed that there would be no obstacles to TOS's listing around 2024 given that it meets the exception requirements. However, he noted that while meeting requirements is fundamental for an IPO, it is more important to establish systems befitting a listed company to have enterprise value properly evaluated, and advised that internal and external indicators need further improvement. This is because while groundwork for an IPO is important, without performance backing it up, it is futile.

Accordingly, TOS has converted its financial statements from general business accounting standards to Korean-choice International Financial Reporting Standards (K-IFRS) and undergone accounting audit by external auditors. The company has been strengthening its foundation by upgrading the previously used ERP program (SAP), implementing daily settlement, and establishing a cost management system.

Revenue has also increased by 50.3% compared to the previous year, and operating profit margins have improved, showcasing both external growth and revenue generation simultaneously and raising expectations for IPO promotion.

CEO Kim Yong-gyu stated, "SMEs have weak human composition, and when CEOs concentrate on resolving current issues, there is insufficient time to contemplate future plans," and added, "Thanks to support from KBCSD and SEMES, we were able to overcome the limitations of SMEs and prepare for the future."

■ SEMES: Mutual Cooperation Keywords—Trust, Opportunity, Success

TOS experienced a quality accident in equipment that went into mass production in 2017, and as a result, faced difficulties with operating profits turning negative in 2019.

Facing crisis, TOS raised funds by selling buildings and invested in recovery using retained earnings. To preemptively prevent human errors occurring from manual processes in each stage, the company developed and introduced test equipment. Additionally, it expanded quality-related personnel and implemented salary increases to prevent existing employees from leaving.

SEMES' support was decisive in overcoming the crisis. Although SEMES could have changed its supplier following the quality accident, it decided to trust them further. SEMES, prioritizing quality management as its primary value, provided education and technical guidance to CEO Kim, who devoted management efforts to quality management, and supported the acquisition of Quality Management System Certification (ISO 9001).

TOS ultimately recovered order volumes in 2020, escaped losses, and succeeded in its turnaround. Reflecting on that time, CEO Kim stated, "I always had confidence in technology, but as a manager, I painfully experienced how important it is to oversee all aspects of management beyond technology, including quality and personnel," and expressed gratitude, saying, "Thanks to SEMES' commitment to mutual cooperation and collaboration, we were able to succeed in our turnaround."

Meanwhile, the KBCSD Management Advisory Panel, which launched in 2004 with the participation of 40 former CEOs and executives from major groups including Samsung, Hyundai Motor, LG, and SK, has provided advisory services to 11,151 companies in 23,462 cases (′04~′21). The KBCSD Management Doctor System has involved 75 large enterprises and 771 partner companies over the past 15 years (′07~′21).

The KBCSD SME Cooperation Center will strengthen the Management Doctor Program from 2022 onward to build a new mutual growth collaboration model. In addition to providing mid- to long-term advisory services, it plans to support education and consulting to promote ESG management among partner companies. Additionally, the center is planning partner company training in collaboration with large enterprises to address current issues such as the Occupational Safety and Health Act and the Serious Accident Punishment Act.