Korea Data Systems Co., Ltd. (Korean코리아데이타시스템스, abbreviated KDS), was an international electronics manufacturer based in Seoul, South Korea that manufactured primarily cathode-ray tube (CRT) and liquid-crystal display (LCD) computer monitors. KDS also produced word processors, laptops, and other computer hardware. The company was founded in 1983 and had over 1,200 employees worldwide at its peak.[1] In 1999, it formed an American joint venture with TriGem of Korea and Sotec of Japan, named eMachines, which at its peak in 1999 was the fourth-largest manufacturer of computer systems in the United States.

Korea Data Systems Co., Ltd.
KDS
Native name
코리아데이타시스템스
IndustryComputer
Founded1983; 41 years ago (1983) in Seoul, South Korea
HeadquartersGarden Grove, California, United States (KDS USA)
Number of employees
1,200 (1999, peak)[1]
DivisionseMachines (1998–2004)

History

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Korea Data Systems was founded in 1983 in Seoul.[2] KDS initially manufactured its monitors either unbranded or for computer systems manufacturers to silkscreen their own name on the chassis.[3] At first a manufacturer of basic monochrome cathode-ray tube (CRT) computer monitors, the company diversified in the late 1980s to produce high-end multisync CRT monitors for workstation use, as well as power supply units and word processors.[4][5] While its primary exports outside of South Korea remained monitors throughout its existence, domestically the company also sold modems, fax machines, and even ultrasound machines.[2]

 
KDS-branded X-Flat monitor from c. 2003

Starting in the late 1990s, KDS began a sales effort to market monitors under its own name.[3] In 1996, the company moved its American subsidiary, KDS USA, to an 83,000-square-foot facility in Garden Grove, California, from which the company distributed its monitors as well as conduct worldwide sales and marketing.[6] In March 1997, by which point KDS was shipping 250,000 monitors monthly, the company released its first branded product, the Visual Sensations-21 (VS-21), a CRT monitor with a 21-inch-diagonal picture tube.[3] In June that year, the company signed a deal with its first brick-and-mortal retail partner, CompUSA, to sell its monitors across the United States.[7][8] In August 1998, KDS acquired the monitor business of Radius Inc., allowing KDS to manufacture high-end monitors for Macintosh systems.[9] In 1999, KDS began selling monitors with Trinitron picture tubes manufactured by Sony, under the Avitron trademark.[10]

In September 1998, Korea Data Systems formed an American joint venture, eMachines, with the Korean computer company TriGem and the Japanese computer ODM Sotec. The three companies established eMachines to market sub-$1000 personal computers in the United States.[11][12] and Japanese computer maker Sotec.[11] By early 1999, eMachines was the fourth-largest personal computer manufacturer in the United States.[12] Production of eMachines' computers was largely done at TriGem's factory in Ansan, with concurrent production lines in Taiwan and Japan. Meanwhile, KDS provided the monitors for the eMachines systems.[11] Despite its initial success, eMachines faultered in the early 2000s amid quality control concerns and a botched IPO on the Nasdaq. In 2001, KDS president Lap Shun Hui bought eMachines from his business partners and soon thereafter took it private.[13] He eventually sold it to the American computer maker Gateway, Inc., in 2004 for an estimated $289.5 million ($30 million in cash and 50 million in shares of Gateway stock).[14][15]

In November 1999, KDS USA acquired Mag Portable Technologies, a $10-million marketer of laptops based in Santa Ana, California, for an undisclosed sum. Mag was made a subsidiary of KDS and rechristened KDS Computers.[1] Laptops under the KDS Computers brand were manufactured in East Asia.[16] KDS Computers, as with eMachines, struggled with customer dissatisfaction and high rates of return and went defunct in 2003.[17]

KDS discontinued production of CRT monitors by the mid-2000s, shifting to liquid-crystal displays (LCD), for which they contracted Proview of Hong Kong for manufacturing.[18]: 102 

References

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  1. ^ a b c Hernandez, Greg (November 13, 1999). "KDS USA Acquires Mag Technologies". Los Angeles Times. Times-Mirror Company: 2 – via ProQuest.
  2. ^ a b "Korea Data Systems Displays Colorful Future". Korea Money. 2 (3). Asia-Pacific Inforserv: 28. March 1995 – via Google Books.
  3. ^ a b c Lyster, Michael (March 31, 1997). "KDS wants a brand name for its monitors". Orange County Business Journal: 1 – via ProQuest.
  4. ^ Staff writer (March 8, 1988). "List of Firms That Manufacture Color, Monochrome Monitors". PC Week. 5 (10). Ziff-Davis: 83 et seq. – via Gale.
  5. ^ Staff writer (July 11, 1988). "List of Companies That Design, Market or Manufacture Multiscan Monitors". PC Week. 5 (28). Ziff-Davis: 60 et seq. – via Gale.
  6. ^ Staff writer (September 16, 1996). "Monitor makers set up shop in OC". Orange County Business Journal: 1 – via ProQuest.
  7. ^ McGoldrick, Paul (August 18, 1997). "Mass Distribution For Monitors". Electronic Design. 45 (17). Endeavor Business Media: 135 – via Gale.
  8. ^ Lyster, Michael (June 16, 1997). "KDS USA Gets New Retailer". Orange County Business Journal: 37 – via ProQuest.
  9. ^ Morgenstern, David (August 10, 1998). "Radius hands off monitor business". MacWeek. 12 (30). Ziff-Davis: 22 – via Gale.
  10. ^ Staff writer (May 7, 1999). "Trinitron tube brings quality to 19-inch display". Computer Dealer News. 15 (18). Plesman Publications: 43 – via ProQuest.
  11. ^ a b c Mi-Young, Ahn (January 2000). "From Rags to Riches". Electronic Business Asia. 11 (1). Reed Business Information: 50 – via Gale.
  12. ^ a b Staff writer (March 31, 1999). "eMachines Is Fourth in U.S. Sales of PCs". The New York Times. p. C25. Archived from the original on November 13, 2021.
  13. ^ Hesseldahl, Arik (November 24, 2003). "The McDonald's of Computers". Forbes. 172 (11): 170–172 – via ProQuest.
  14. ^ Fried, Ina (March 11, 2004). "Gateway completes eMachines buy". CNET. CBS Interactive. Archived from the original on August 1, 2021.
  15. ^ Jeong-hoon, Ahn; Lee Gyung-jin (October 29, 2015). "Korea's TG Computer sets example in corporate restructuring". Pulse. Maekyung Media Group. Archived from the original on December 1, 2022.
  16. ^ Simons, Andrew (June 17, 2002). "Hard landing". Orange County Business Journal. 25 (24): 23 – via ProQuest.
  17. ^ Staff writer (October 2003). "KDS KFC?". Maximum PC. Future Publishing: 25 – via Google Books.
  18. ^ Spiwak, Marc (April 26, 2004). "Xerox, KDS Focus on Flat-Panel Displays". CRN (1093). CMP Media: 102–103 – via ProQuest.
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