Korean machinery, metal SMEs seek to tap wider ASEAN market at Metalex 2025

Korea Herald correspondent

BANGKOK — A group of small and mid-sized South Korean machinery and parts manufacturers participated in Thailand's largest metalworking exhibition, Metalex 2025, as part of the Korea Pavilion organized by the Korea Trade-Investment Promotion Agency, or KOTRA.

Although Thailand is not considered an easy market for Korean suppliers — with Japanese firms dominating most categories and Chinese manufacturers expanding their presence with low-priced steel products — Korean participants said the exhibition remains an important platform for entering the broader ASEAN region, where supply chains extend into Vietnam, Malaysia and Indonesia.

“It’s our third year at Metalex. The Thai market hasn’t been very active recently — last year and the year before were especially slow,” said an official from Sensor System Technology, a maker of pressure gauges and sensors for automation systems.

“But ASEAN business usually starts with exchanging contacts and building rapport over time. Maintaining visibility is important, and we are able to participate thanks to KOTRA’s support.”

According to KOTRA’s Bangkok office, government assistance covers costs related to shipping, booth operation and booth design — worth up to about 5 million won ($3,390).

“More than 45 local buyers have scheduled meetings with the Korean companies during this year’s exhibition,” a KOTRA official said.

Mijin System, a manufacturer of lifting devices used at industrial sites, said Thailand’s machinery market has not been favorable for Korean suppliers due to the strong presence of regional rivals.

“Japanese brands dominate many categories because of their long-standing automotive base here, and Chinese players are strong in electric vehicle-related parts,” a Mijin official said. “Korean companies are at a relative disadvantage, but that doesn’t mean we can simply walk away from the Thai market.”

Airrex, a producer of portable industrial air conditioners, joined the expo at the request of its local distributor.

“Our distributor asked us to participate because Metalex is still one of the most effective channels to showcase products to both Thai and regional buyers,” an Airrex official said.

The company’s flagship units — priced at around 2.2 million won ($1,490) — typically see stronger demand in the US and Europe, but the official said the Thai market remains important for staying connected to Southeast Asian buyers.

“While Thailand isn’t the strongest market for high-end units, the show still attracts buyers from Malaysia and Indonesia,” the official added.

This year, the number of companies participating in the Korean Pavilion fell by half. The decline, however, was not due to waning interest but the result of reduced government support, said Kim Yong-seong, director general of KOTRA’s Bangkok office.

“Until last year, we could support around 20 Korean companies, but this year we sponsored only nine due to budget limitations,” Kim said. “We hope the government will expand funding so more SMEs seeking to broaden their sales channels can continue engaging with Southeast Asia.”

This year’s exhibition, held from Wednesday to Saturday at the Bangkok International Trade and Exhibition Center, drew more than 2,400 companies from 66 countries, according to the organizer. South Korea has taken part in Metalex since 1988, and a separate delegation from Busan also joined this year’s event.