South Korea’s leading office software developer Hancom Group said on Monday that it has acquired SanCheong Co., a manufacturer of personal protective equipment such as self-contained breathing apparatus, mask, and firefighting suits, in a move to expand its presence in the hardware sector. Hancom expects the latest 265 billion won ($230.3 million) worth acquisition will allow it to secure leading-edge competitiveness in the next-generation protective equipment market by adding its software capability to SanCheong’s equipment developing technology.

An unnamed official from Hancom said that applying its Internet of Things (IoT) or fire-sensing technology to the protective equipment sector will bring innovation in the overall production management system and help overcome functional limitations of existing personal protective tools. Also, virtual reality and augmented reality technologies held by Hancom GMD Inc., a producer of customized integrated circuit, will allow the group to create various synergy by establishing improved product test and safety education systems, the official added.

The latest acquisition comes amid Hancom Group’s years of efforts to merge hardware with software technology. In 2013, the group acquired Unimax Information Systems to merge hardware and software technologies in the defense industry sector. Hancom said that its past experience will be an asset to maximizing synergy also with SanCheong.

Globally, it has been a trend for software firms to enhance their hardware capability, and also vice versa, breaking industry barrier. Google Inc., world’s largest software company, has started to make smartphones or virtual reality headsets while software company Facebook Inc. created a hardware research laboratory.

Kim Ga-bi, a Hancom official, said that hardware companies are also getting involved in software - for example, Samsung Electronics Co., a leading hardware company, has acquired software firms VIV Labs Inc. and Joyent.

Hancom’s acquisition of SanCheong, meanwhile, will help double the group’s consolidated sales this year.

In 2016, SanCheong raised 100 billion won in sales, posting an average annual growth rate of more than 20 percent.

Kim Sang-cheol, chairman of Hancom Group, said that the latest acquisition will allow it to not only expand business-wise but also contribute to enhancing national safety and disaster confrontational ability.

By Oh Chan-jong

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