[ TRADE & PRODUCTS > Partners In The Making ]

icasso Info Communication Co., Ltd. has emerged as a dark horse in the specialized DVR market. Following its establishment in 1999 and first product launch in the spring of 2000, the venture enterprise has grown rapidly.

 A DVR (digital video recorder) is a high-quality compact recorder that combines the functions of a recorder and multiplexer into a single unit. Having no tapes to maintain, replace, or rewind means that the recorder can be set to record and virtually forgotten. Use of a DVR also dramatically reduces the downtime for maintenance or repair that is generally associated with VCRs.

  Although Picasso is a late entrant in the field, it won kudos for being the first to develop a device capable of recording 120 frames per second. Now having mastered DVR core technology, it has gained the confidence to become the best in the domestic market. Although initially reluctant to buy a product such as a DVR from Korea, Matsushita Co., Ltd. in Japan eventually contracted to buy 20-billion won ($17-million) worth of Picasso¡¯s DVRs after a six-month test period.

  In 2001, the company accomplished a domestic sales record of $10.3 million and exports of $8.8 million. In 2002, domestic sales amounted to $15.8 million and exports to $14.0 million. Picasso Info Communication exports to over 20 countries worldwide, including the United States and Canada. In 2002, the Ministry of Information cited the company as the Small and Medium IT Enterprise of the Year for its technological developments in the DVR field.

  On the subject of DVRs, their technological capability is more widely acknowledged overseas than in Korea, underlined by the fact that more than 80 percent of the company¡¯s products are exported to the United States.

  On the strength of its technological edge, Picaso has attracted 1.2 billion won ($1 million) from Provis Venture Capital and Unison Venture Investment in 2001.

  The driving force behind Picaso is its CEO, Kim Dongyeon. The road to success has not been easy. After graduating from KooMi Electronics Technology High School, Mr. Kim found it tough to land a job. Like a true entrepreneur, he decided to employ himself and start his own business. From an office in Yongsan Electronics Market, he offered a range of computer-related services such as building and managing computer networks and repair of peripherals. Unfortunately, his company failed, but he was not deterred by this experience. Instead, he flung himself into building another company in the DVR field with his along with his partners who were fellow KooMi graduates, motivated by their strong belief in the growth potential of the DRV market.

  More than 30 percent of Picaso staff specializes in research in digital recording. Their focus is product stability and reliability in consideration of the need for DVR devices to be breakdown-free, 24 hours a day. Although none of the researchers have degrees of master¡¯s level or above, its technical skills are by no means lacking. Rather, the success and position of the company amply demonstrates that technical ability is not proportionate to scholastic achievement and that creativity generated by solving problems in a hands-on fashion can prove superior when it comes to delivering products demanded by the marketplace.

  The possibilities of DVR have become infinite through the development of digital and Internet communication technology. Furthermore, they are serving as basic technologies in developing personal video recorders (PVRs), which could eventually replace VCRs for home use in the future. (A PVR records and plays back television programs like a VCR, but unlike a VCR, it stores the programs in digital rather than analog form.)

  Currently, everyone at Picasso is concentrating on technological development and marketing to penetrate overseas markets. Small yet capable, Picasso Info Communication will strive to push back the envelope in the digital recording fields to live up to the expectations of its clients, shareholders and staff.

What is the outlook for the DVR market?   Because closed circuit television (CCTV) is now being replaced by DVR across the world as a surveillance tool, the market is just huge. There are wider applications in the field of environmental protection since a small DVR with wireless function added can be installed in a forest to monitor fire hazards. This particular market is so strong it is absorbing all my attention so I don¡¯t have the time to concentrate on anything else!   What is the advantage of a Picaso DVR over CCTV?   Since we use digital technology the definition is excellent and our DVRs come with an instant seizure function. Also, because images are saved in a hard drive, a permanent archive can be stored without any deterioration as might happen with CCTV since video tapes can and do wear out. Also, when our DVR is connected to the Internet, it is possible to access archives and real-time surveillance just about anywhere.   How much does Picaso export? Are exports a high proportion of sales?   Currently, Picaso exports over 90 percent of its products. In the particular case of the United States, exports leaped from 3 billion won in 2000 to 12.4 billion won 2001. Picaso products are rated highly by American consumers. We rank no. 1 in the U.S. DVR market despite our late entry.   Conversely, this can be a weak point in marketing strategy. Picaso now depends heavily on exports, especially to the United States. The aim of our company is to diversify our exports by expanding into the Japanese market. To ease our entry, Picaso is now trying to engage a Japanese designer to give our products the design characteristic of Japanese products.   For more information on another top 100 promising medium-sized South Korean companies seeking foreign investment, please contact the Investment Consulting Team of the Korea Investment Service Center (KISC). Tel: 82-2-3460-7550/4