Factory's Post 🇪🇺 #9

Factory's Post is back to deliver the insights you need for your business growth.💡 We've gathered the latest business trends, useful information for market entry, and hot news from the Korea-Europe ecosystem!

South Korea’s Motto Is Acceleration

South Korean startups and SMEs are increasingly eyeing the European market, but regulatory hurdles like the GDPR and the forthcoming AI Act pose significant challenges. A recent survey by the Korea Internet & Security Agency (KISA) revealed that over 70% of Korean firms in the EU struggle with compliance, citing insufficient legal expertise and a lack of local partnerships.

🤝 South Korea Strengthens Support for Startups in Europe Amidst GDPR and AI Act Challenges

In response, the Korean government is enhancing its support through the EU Personal Data Protection Cooperation Center in Belgium. Initiatives include establishing a Data Protection Officer (DPO) Council, offering regulatory updates, conducting tailored seminars, and developing compliance guides. These efforts aim to equip Korean businesses with the tools needed to navigate Europe's stringent digital regulations and foster long-term competitiveness.

As the EU's digital frameworks continue to evolve, Korea's proactive measures are designed to bolster trust and facilitate smoother market entry for its innovators.

Read more here

Accelerating Program

🚗 Korea’s Mobility Startups Accelerate into Europe

123 Factory had the pleasure of having met numerous institutions and companies during the Delegation Trip with Jeonnam Center for Creative Economy & Innovation (CCEI) for its Mobility Overseas PoC Acceleration Program in Germany (September 15–20, 2025). The initiative was designed to help Korean mobility and materials startups validate their technologies, build strategic partnerships, and explore market opportunities in Europe’s advanced automotive ecosystem.

Three companies, ABR, E-Material Lab, and HEMC, participated in the program, engaging directly with leading European industry players including Mercedes-Benz, Porsche, VARTA, and the Fraunhofer Institutes IWKS and IKTS. Through technical meetings and on-site visits, the startups explored cooperation in areas such as battery innovation, thermal management, and circular economy solutions for electric vehicles. Major companies such as Evonik, V4Smart, and Henkel also participated in the meetings, alongside valuable discussions with research institutes HIU and ZSW.

The delegation also took part in policy briefings on key EU regulations, including CBAM, FSR, CRMA, and CSDDD, to better understand compliance requirements for entering the European market. Visits to hte GmbH (BASF Group) and BITC (CATL’s research arm) provided further insights into Europe’s R&D and production infrastructure. We were also delighted to meet our close partners of LEG Thuringia.

The program resulted in more than ten new business and technology leads, several potential PoC projects, and follow-up discussions for investment and export opportunities. By connecting Korean innovation with Europe’s industrial networks, the initiative laid the groundwork for sustained collaboration in the global mobility sector.

Market

Other areas are growing too…

🛰️ ESA and KASA Strengthen Space Cooperation

The European Space Agency (ESA) and the Korea Aerospace Administration (KASA) signed a Memorandum of Understanding at the 76th International Astronautical Congress in Sydney. This agreement focuses on peaceful uses of space, including space weather monitoring and sharing space communications facilities, opening avenues for European companies in the aerospace sector.

Read more here

🚗 European EV Demand Boosts Korean Auto Exports

In August 2025, South Korea's car exports rose by 8.6%, setting a monthly record of $5.5 billion. This surge was driven by strong demand for electric vehicles (EVs) in Europe, highlighting opportunities for European EV manufacturers and related industries in the Korean market.

Read more here

📈 South Korea's Manufacturing PMI Indicates Growth

South Korea's Manufacturing Purchasing Managers' Index (PMI) increased to 50.7 in September 2025, marking the first expansion in eight months. This improvement, supported by increased overseas demand, particularly in major Asia-Pacific markets, signals a recovering manufacturing sector, potentially beneficial for European companies looking to invest or partner in Korea.

Read more here

Meet New Startups!

💬 Interview with Kim Seok-joong, CEO of VTouch

Safety First — Managing Battery Risks in Smart Rings

VTouch is a Seoul-based tech company pioneering touchless interaction technology that lets users control devices with natural gestures and no physical contact needed. Its innovations span AI-driven interfaces for cars, smart homes, and wearables. Recently, Vtouch introduced the WIZPR Ring, a smart ring focused on safety and intuitive digital interaction.

123 Factory:

There’s been recent buzz around battery issues in smart rings — especially involving major brands like Samsung. What’s your perspective on this situation?

Kim Seok-joong (VTouch):

Yes, the issue with Samsung batteries drew significant attention. When we first inquired, the manufacturer said there was no problem, but it turned out otherwise.

The truth is, all battery-powered devices carry some level of risk, though the lithium-polymer batteries used in smart rings are relatively safer — with minimal risk of overheating or fire.

123 Factory:

Does this mean that other smart rings could face similar challenges?

Kim:

Exactly. The structure of smart rings makes battery swelling a potential concern for all brands — it just happened to become news because Samsung was involved. Fortunately, in this case there were no injuries or fires.

For our product, WIZPR Ring, we designed it as an open-type ring, so users can immediately remove it if anything unusual occurs. We also proactively informed our crowdfunding customers about possible swelling risks — transparency matters to us.

123 Factory:

How is Vtouch addressing these safety challenges moving forward?

Kim:

For future models, we’re exploring ways to further reduce potential risks. Even for current shipments, we’re taking extra precautions to minimize any issues. Smart rings inevitably face swelling risks — what matters is how well those risks are managed and mitigated.

Interestingly, I suspect that’s why Oura Ring moved from an epoxy-filled interior to a full titanium body in its latest version.

123 Factory:

So, is this challenge unique to VTouch?

Kim:

Not at all — it’s reassuring, in a way, to know that we’re not alone in facing these engineering challenges. Of course, if there had been any fires or burns, the story would have been much worse in the media. Still, even minor incidents can heighten consumer concern about smart ring safety, which could impact overall market confidence.

✨ VTouch remains committed to prioritizing user safety above all else — continuously improving design, transparency, and reliability for the next generation of wearable technology.

123 Factory, Now

🌏 Join the AsiaBerlin Summit 2025 – Where Innovation Meets Global Connection!

5 Days. 2,500+ Changemakers. Endless Opportunities. Berlin’s most anticipated international startup event is back - AsiaBerlin Summit 2025, where Asia’s innovation meets Berlin’s boldest ideas.

We are joining this year’s ABS with four startups from Korea: RightRoute, Xolution, VTouch and Nine to Six, who are excited to meet you!

💡 Shape the Conversation: HealthTech | FinTech | GreenTech | Mobility | Creative Economy
🤝 Connect with Key Players: Founders, investors, policymakers & ecosystem builders across Asia and Berlin
✨ Get Involved: Apply to speak, showcase your startup, partner to create meaningful experiences, and leverage curated networking tools to meet the right people

📅 November 24–28, 2025
📍 Rotes Rathaus, Berlin
👉 Register Now!

Upcoming Events

• Seoul ADEX 2025
  17 - 24 October | Ilsan, Korea | Aerospace & Defense
  Seoul International Aerospace & Defense Exhibition supported by Ministry of National Defense

• Korea Auto Industry & Global TransporTech Show
  22 - 24 October | Ilsan, Korea | Mobility
  The comprehensive exhibition of passenger, commercial, special-purpose vehicles, and future mobility

• Korea Metal Week 2025
  29 - 31 October | Ilsan, Korea | Metal Industry
  This leading tradeshow for the metal industry offers a broad range of solutions and innovative ideas for critical industrial applications.

• Solar Asia 2025
  5 - 7 November | Ilsan, Korea | Battery & Energy
  Solar Asia 2025 offers a one-stop shop for solar products and equipment, solar power plant investments, and energy trading platforms.

• AsiaBerlin Summit 2025
  24-28 November | Berlin, Germany | Startups
  Don’t miss your chance to be part of AsiaBerlin’s flagship innovation summit!

• AIoT Korea Exhibition & International Conference 2025
  26-28 November | Seoul, Korea | AI & IoT
  A venue for sharing AIoT technologies & services, such as digital transformation of all industries.

• COMEUP 2025
  10-12 December | Seoul, Korea | Startups
  COMEUP 2025 is South Korea's flagship global startup festival, aiming to become a "Global Nexus" for innovation by connecting startups, investors, and corporations from around the world.

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