MIRA
INFORM REPORT
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Report Date : |
13.04.2007 |
IDENTIFICATION
DETAILS
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Name : |
POONGSAN CORPORATION |
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Registered Office : |
324-6, Hyoseong 2-dong, Gyeyang-gu, Incheon - 407-831 |
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Country : |
Korea |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
10/22/1968 |
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Legal Form : |
Listed Company |
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Line of Business : |
Manufacture of Rolled, Drawn and Folded Products of Copper. |
RATING &
COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
Basic
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Company
Name |
POONGSAN
CORPORATION |
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Registered Address |
324-6,
Hyoseong 2-dong, Gyeyang-gu, INCHEON, KOREA |
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Zip Code |
407-831 |
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Tel |
+82-32-540-7114 |
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Fax |
+82-32-540-7400 |
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E-mail |
jwkang@poongsan.co.kr |
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Website |
www.poongsan.co.kr |
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Trading Address / Seoul Office |
3537,
CPO BOX, Kukdong Bldg., 60-1, Chungmuro 3-ga, Jung-gu, SEOUL, KOREA |
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Tel |
+82-2-3406-5114 |
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Fax |
+82-2-3406-5400 |
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Daegu Sales Office |
184-9, Taepyeongno 3-ga, Jung-gu, DAEGU, KOREA |
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Tel |
+82-53-254-7761 |
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Fax |
+82-53-256-4737 |
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Busan Sales Office |
740, Banyeo 1-dong, Haeundae-gu, BUSAN, KOREA |
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Tel |
+82-51-523-1884~6 |
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Fax |
+82-51-523-1887 |
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Angang Factory |
2222-2, Sandae 3-ri, Angang-eup, Gyeongju-si, GYEONGSANGBUK-DO, KOREA |
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Tel |
+82-54-760-6114 |
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Fax |
+82-54-760-6400 |
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Dongrae Factory |
52, Banyeo 1-dong, Haeundae-gu, BUSAN, KOREA |
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Tel |
+82-51-520-8114 |
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Fax |
+82-51-520-8400 |
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Onsan Factory |
611, Daejeong-ri, Onsan-eup, Ulju-gun, ULSAN, KOREA |
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Tel |
+82-52-231-9114 |
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Fax |
+82-52-231-9400 |
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Bupyung Factory |
324-6, Hyosung-dong, Kyeyang-gu, Incheon, KOREA |
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Tel |
+82-32-540-7114 |
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Fax |
+ 82-32-540-7400 |
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Type |
Export/Import |
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Industry |
Manufacture of Rolled, Drawn and Folded Products of Copper |
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Main Business |
Copper Plate, Copper Pipe, Copper Bar, Ammunition, Coin Blank |
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Established |
10/22/1968 |
The Subject Company owns the premises of
Onsan Factory ( 345,370㎡) and Bupyung Factory( 79,445㎡).
Detailed Products
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Activity |
Detailed Products (UNSPSC) |
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Sell |
Non ferrous alloy tubing(31231317) |
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Sell |
Bombs and grenades(46111500) |
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Sell |
Powder propellants(12131801) |
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Sell |
Forgings(31130000) |
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Sell |
Bar(30101600) |
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Sell |
Copper strip(30102609) |
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Sell |
Roofing materials(30151500) |
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Sell |
Copper tubing(31231302) |
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Sell |
Ammunition(46101600) |
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Sell |
Electronic manufacturing and processing machinery(23211100) |
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Sell |
Ammunition(46101600) |
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Sell |
Stainless steel bars(30101605) |
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Sell |
Titanium pipe(40142119) |
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Sell |
Currencies or coinage(93151701) |
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Buy |
Zinc |
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Buy |
Tin |
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Buy |
Nickel |
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Buy |
Copper |
CEO’s
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Name |
Ryu Jin |
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Address |
- |
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Date of Birth |
03/05/1958 |
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Title |
Chairman & CEO |
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Sex |
Male |
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Nationality |
Korean |
Profiles
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Capital |
166,000,000,000 KRW |
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Employees |
3,590 |
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Formation |
Listed Company (KSE : 005810 ), A Company
of Poongsan Group |
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Bank Details |
Korea Development Bank Sales 2 Div. |
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Corporate Registered No. |
120111-0018110 |
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Business Registered No. |
122-81-02549 |
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Permit & Licenses |
01/1994 ISO 9002 12/1996 ISO 9001 12/1999 ISO 9002 12/1999 ISO 9001 12/2001 ISO 14001 06/2003 JIS 12/2003 ISO 14001 02/2006 ISO 14001 02/2006 ISO 9001 07/2007 OHSAS 18001 07/2007 ISO14001 07/2007 KOSHA 18001 Int’l Trade No.: 985448 |
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Shareholder Position |
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Company History |
10. 1968 Poongsan Metal Corp. founded 12. 1969 Bupyung Brass Mill completed 04. 1970 Designated as Coin Blank Producer
for the Mint of Korea 03. 1973 Angang Ammunition Plant
completed 07. 1980 Onsan Brass Mill completed 07. 1982 Dongrae Plant opened 01. 1983 Precision Dies Mfg. Shop at
Dongrae Plant completed 08. 1985 Leadframe Mfg. Shop at Dongrae
Plant completed 10. 1988 2nd Onsan Brass Mill
completed 03. 1989 Renamed 'Poongsan
Corporation' 04. 1992 Brass Mill of PMX Industries,
Inc., completed in Iowa, U.S.A 01. 1994 Quality Standard Certificate
ISO9002 on Copper & Copper Alloy Products awarded 12. 1996 Quality Standard Certificate
ISO9002 on Titanium Tube & Stainless Steel Strip awarded 12. 1997 Poongsan Metal Plant in Dongguan,
China completed 12. 1999 Quality Standard Certificate ISO
9001 & ISO 9002 on Defense Industry Products awarded 10. 2000 Siam Poongsan Metal Co., Ltd. in
Thailand established 06. 2001 PNT Corp., a joint venture,
established in Ulsan City, Korea 12. 2001 Poongsan SDN BHD, in Johor,
Malaysia established 01. 2002 Poongsan Shanghai Co., Ltd., in
China established 04. 2002 Poongsan Japan Corp., in Saitama,
Japan established 07. 2002 Poongsan America Corp., in
California, U.S.A. established 12. 2003 Poongsan Perth Mint Joint Venture
established in Australia 12. 2003 Environmental Standard
Certificate ISO14001 awarded on Copper & Copper Alloy Products 03. 2004 Acquisition of fuse and precision
machinery parts maker Hyopchin Industrial Co., Ltd. 05. 2004 Poongsan Valinox Corporation,
joint venture established in Bupyung 06. 2004 Poongsan's Angang plant acquires
international accreditation as certification and inspection body 11. 2004 Honored with Productivity Innovation
Award at National Quality Management Convention 11. 2004 Tech Corporation, joint venture
established in Chungnam 04. 2005 'Hyopjin Industrial Co., Ltd.'
renamed 'Poongsan FNS Cor poration' 07. 2005 Poongsan Industrial Corp.
consolidated Poongsan Machinery Corp.
10. 2005 Declared Poongsan's Mission -
'Poongsan Corporation can, and will, contribute to human progress through our
superior products, employment opportunities, and uncompromising service. 10. 2005 Poongsan's Onsan plant acquires
KOSHA18001(Safety health management system)
11. 2005 Received a Government Award for
attaining US$400 million in export |
The Subject Company is a supplier of non-ferrous metals, defense products and precision
products. It has three business divisions. The Nonferrous Metals Division
offers copper and copper alloy products, including sheets and strips, pipes and
tubes, bars, rods and wires, leadframe alloys and tin-plated strips; non-copper
products, comprised of titanium tubes, stainless steel strips and clad metal,
and processed goods, including coin blanks, precious metal coin blanks, roofing
tiles and other products. The Defense Products Division develops military
ammunition, including small-caliber ammunition, anti-aircraft ammunition, naval
ammunition, mortar ammunition, anti-tank ammunition, recoilless rifle
ammunition and other ammunition and related products. The Precision Products
Division is engaged in the manufacture and sale of leadframe products for
semiconductor, electronic and electrical components, as well as multi-gauge
strips, precision dies, machinery, jigs and tools.
Management
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Job Description |
Title |
Name |
Nationality |
Date of Birth |
Education |
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Chairman & CEO |
Mr. |
Ryu Jin |
Korean |
58. 3. 5 |
Seoul National University |
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President & CEO |
Mr. |
Lee Moon-Won |
Korean |
47.11.22 |
Seoul National University |
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Chief Vice President |
Mr. |
Seo Byung-Min |
Korean |
47. 5.8 |
Seoul National University |
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Vice President |
Mr. |
Lee Woo-Taeck |
Korean |
50. 6.14 |
Ducksoo Commercial High School |
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Director |
Mr. |
Nam Soo-Yon |
Korean |
56. 2.29 |
Pusan Fishery College |
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Director |
Mr. |
Lee Seung-Hoon |
Korean |
51.10. 2 |
Seoul National University |
Financials
Unit: KRW
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Year |
Sales |
Assets |
Net income |
|
2006 |
1,750,485,206,472 |
1,677,578,073,267 |
144,091,800,887 |
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1,357,608,089,317 |
1,412,834,555,668 |
48,839,798,657 |
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2004 |
1,173,391,985,066 |
1,400,795,927,106 |
91,461,664,888 |
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2003 |
928,230,035,539 |
1,297,753,238,710 |
32,342,824,335 |
Financial Description
Unit: KRW
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Authorized
Capital |
300,000,000,000 |
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Paid-Up
Capital |
166,000,000,000 |
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Total Issues Shares |
33,200,000 |
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Balance Sheet |
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Unit : Korean Won |
As of 12/31/2006 |
As of 12/31/2005 |
As of 12/31/2004 |
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Total Assets |
1,677,578,073,267 |
1,412,834,555,668 |
1,400,795,927,106 |
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Current Assets |
720,577,708,952 |
504,412,714,437 |
474,049,636,811 |
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-Quick Assets |
247,859,839,545 |
203,336,067,006 |
196,394,915,708 |
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-Inventories |
472,717,869,407 |
301,076,647,431 |
277,654,721,103 |
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Fixed Assets |
957,000,364,315 |
908,421,841,231 |
926,746,290,295 |
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-Investment |
252,694,523,486 |
205,827,441,327 |
220,791,580,798 |
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-Tangibles |
694,419,207,989 |
694,582,458,151 |
695,009,923,449 |
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-Intangibles |
9,886,632,840 |
8,011,941,753 |
10,944,786,048 |
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Total Liabilities |
680,830,984,377 |
527,993,639,924 |
546,575,761,487 |
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Current Liabilities |
440,948,798,063 |
320,682,161,875 |
358,304,550,579 |
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Fixed Liabilities |
239,882,186,314 |
207,311,478,049 |
188,271,210,908 |
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Capital Stock |
166,000,000,000 |
166,000,000,000 |
166,000,000,000 |
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Capital Surplus |
502,425,547,597 |
499,032,728,691 |
498,061,135,423 |
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Profit Surplus |
416,197,739,804 |
290,183,589,825 |
259,025,536,377 |
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Capital Adjustment |
(-)87,876,198,511 |
(-)70,375,402,772 |
(-)68,866,506,181 |
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Total Equity |
996,747,088,890 |
884,840,915,744 |
854,220,165,619 |
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Liab. & Shareholder’s Equity |
1,677,578,073,267 |
1,412,834,555,668 |
1,400,795,927,106 |
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Current Liabilities |
440,948,798,063 |
320,682,161,875 |
358,304,550,579 |
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Trade Payables |
48,369,605,659 |
26,599,958,327 |
27,749,385,254 |
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Short-Term Borrowings |
221,029,551,829 |
199,204,494,777 |
235,976,392,530 |
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Accrued Income Tax |
33,850,167,040 |
15,089,449,364 |
19,221,159,425 |
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Account payables |
10,980,953,469 |
10,107,833,269 |
8,573,352,114 |
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Advance Receipts |
13,410,752,556 |
4,287,588,390 |
15,754,251,623 |
|
Unearned Income |
315,172,598 |
238,540,673 |
- |
|
Withholdings |
5,773,310,461 |
1,771,045,117 |
2,429,805,498 |
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Accrued Expenses |
22,106,557,656 |
15,221,205,622 |
13,927,451,183 |
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Current Portion of Long-Term Debts |
65,292,188,213 |
35,284,258,753 |
25,441,955,168 |
|
Fixed Liabilities |
239,882,186,314 |
207,311,478,049 |
188,271,210,908 |
|
Debentures |
99,652,026,774 |
99,679,137,333 |
69,753,842,597 |
|
Long-Term Borrowings |
65,588,022,866 |
35,056,354,703 |
49,786,897,446 |
|
Provision for Severance & Retirement |
141,156,275,577 |
133,534,736,422 |
127,792,433,982 |
|
Transferred to National Pension Fund |
(-)3,386,943,700 |
(-)3,790,816,400 |
(-)4,268,691,600 |
|
Deposits for Severance Insurance |
(-)63,127,195,203 |
(-)57,167,934,009 |
(-)54,793,271,517 |
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Income Statement |
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Unit : Korean Won |
As of 12/31/2006 |
As of 12/31/2005 |
As of 12/31/2004 |
|
Sales |
1,750,485,206,472 |
1,357,608,089,317 |
1,173,391,985,066 |
|
Cost of Sold Goods |
1,559,095,383,060 |
1,211,349,033,658 |
1,030,897,262,821 |
|
Gross Profit |
191,389,823,412 |
146,259,055,659 |
142,494,722,245 |
|
Selling & Admin. Expenses |
62,994,454,921 |
54,793,961,636 |
53,266,910,562 |
|
Operating Income |
128,395,368,491 |
91,465,094,023 |
89,227,811,683 |
|
Non-Operating Income |
133,264,983,181 |
56,668,558,275 |
74,457,361,690 |
|
Non-Operating expenses |
73,136,257,366 |
69,212,614,708 |
44,777,390,451 |
|
Ordinary Income |
188,524,094,306 |
78,921,037,590 |
118,907,782,922 |
|
Special Income |
- |
- |
- |
|
Income Before Taxes |
188,524,094,306 |
78,921,037,590 |
118,907,782,922 |
|
Income Taxes Expenses |
44,432,293,419 |
30,081,238,933 |
27,446,118,034 |
|
Net Income |
144,091,800,887 |
48,839,798,657 |
91,461,664,888 |
|
Cash Flows |
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Unit : Korean Won |
As of 12/31/2006 |
As of 12/31/2005 |
As of 12/31/2004 |
|
Cash Flows from Operating |
23,014,769,912 |
74,241,848,841 |
48,888,168,356 |
|
-Net Income |
144,091,800,887 |
48,839,798,657 |
91,461,664,888 |
|
-Exp. without Cash Outflow |
97,294,150,170 |
95,345,367,618 |
84,899,675,919 |
|
-Revenue without Cash Inflows |
(-)54,793,354,798 |
(-)20,352,441,828 |
(-)37,496,921,310 |
|
-Changes in Asset/ & Liability |
(-)163,577,826,347 |
(-)49,590,875,606 |
(-)89,976,251,141 |
|
Cash Flows from Investing |
(-)82,291,934,678 |
(-)44,745,172,486 |
- |
|
-Cash Inflow from Investing |
4,959,376,130 |
4,999,588,729 |
- |
|
-Cash Outflows for Investing |
(-)87,251,310,808 |
(-)49,744,761,215 |
(-)74,698,776,880 |
|
Cash Flows from Financing |
59,978,068,461 |
(-)24,202,147,689 |
8,874,596,316 |
|
-Cash Inflows from Financing |
3,748,738,749,360 |
3,464,087,309,945 |
2,536,364,447,135 |
|
-Cash Outflows from Financing |
(-)3,688,760,680,899 |
(-)3,488,289,457,634 |
(-)2,527,489,850,819 |
|
Increase/Decrease in Cash |
700,903,695 |
5,294,528,666 |
(-)1,701,073,539 |
|
Cash at the Beginning of Year |
6,332,444,054 |
1,037,915,388 |
2,738,988,927 |
|
Cash at the End of Year |
7,033,347,749 |
6,332,444,054 |
1,037,915,388 |
Products,
Technologies, Services
Description
Main Products & Services
1. FABRICATED NONFERROUS METAL
The fabricated nonferrous metal division
produces a full range of copper products from copper and copper alloy sheets,
strips, tubes, rods, to processed copper products as well as some non-ferrous
products so as to meet domestic demands and most of the export demands. In
addition, it is currently on its way to realize its goal, the globalization of
sales and production, by building an overseas production base in the U.S.,
China, Southeast Asia, and the pan-pacific belt.
Recently, Poongsan developed ultramodern
equipment and increased investment on R&D, thereby increasing the sales of
value-adding copper products such as thin plates, thin tubes, bimetals, and
coin blanks. The Company is forming strategic partnership with prominent
foreign companies with the goal of enhancing the product quality and expanding
export markets. Moreover, in preparation for future industrial environment, it
is making active efforts in developing a wide range of new materials and
creating new demands. Efforts are concentrated in making Poongsan a top-notch
fabricated copper company in the 21st century by proceeding with the 6 Sigma
activities and introducing the ERP system.
- Copper and copper alloy sheets, strips,
tubes, rods
- leadframe materials
- coin blanks, commemorative precious metal
coin blanks
- copper-based roofing material
- titanium tubes
- stainless steel strips
2. DEFENSE PRODUCTS
In early 1970s, Poongsan led the defense
industry in Korea and made significant contributions to the nation's
self-reliance in defense. It also enhanced the national army's power through
mass production and localization of ammunitions. In addition to military
ammunitions, sporting and hunting ammunition were developed and exported, thus
becoming a world-class sporting ammunition manufacturer.
Some of the recent achievements made by the
Company include the development of high-performing and unique Korean-style
ammunition models. With these new ammunitions, the Company transformed its
production system into a technology-intensive, value-adding one and it is
making efforts to further advance the defense industry by expanding the volume
of exports of ammunitions and semi-finished products.
- Military ammunition (ammunition for small
arms, antiaircraft guns, mid-to large-size arms)
- various sporting ammunition
- propellant powder
- ammunition parts
- precision forgery items
3. PRECISION PRODUCTS
Based on years of experience and accumulated
technology in the fabricated nonferrous metal field, Poongsan has been
producing new copper alloy materials for the semiconductor and electronic
parts. The Company began developing PMC 102 in the early 1980s, and continued
to develop numerous semiconductor leadframes including PMC102M, PMC26, and
PMC90, and its own materials for connectors used in electric and electronic
industries. Poongsan went on to produce and supply C194 and C191210, globally
renowned products, to domestic and overseas markets. Poongsan produced
leadframes using its own stamping method in 1985 and an independent entity,
Poongsan Microtec, was founded in 1991.
Poongsan Microtec Corporation, a manufacturer
specializing in leadframes, established a leadframe production plant in the
Philippines in 1996 and this Company continuously strives to become a "comprehensive
electronic part producer" by implementing management strategies such as
reinforcing marketing and R&D activities and actively developing new
businesses. Furthermore, Poongsan continues to expand its areas of business in
precision dies and machinery production.
- Semiconductor Leadframes
- connector parts for electric and electronic
industries
- multi-level copper sheets
- precision dies
- gauges and tools
- metal machinery and facilities
Trade Partners
|
Suppliers |
Codelco LS-NIKKO Korea Zinc Glencore, Norilsk PAC POSCO Shin Young Metal Norilsk |
|
Competitors |
In Leadframe products, The Subject is in
good positioning. |
Related Parties
(Subsidiaries, Joint-
Venture &
Affiliates)
|
Overseas Office |
Taiwan office RM708, 21Century Bldg., No.207 Tun Hwa
North Road, Taipei, Taiwan Phone : 886-2-2545-5311/2 Fax :886-2-2546-0081 |
Domestic Affiliates
Poongsan Microtec Corp.
52, Banyoe 1-dong, Haeundae-gu, Busan
Phone : 82-51-520-8700
Fax : 82-51-529-0061
Poongsan Industrial Corporation
57, Sungju-dong, Changwon, Gyeongnam
Phone : 82-55-239-0700
Fax : 82-55-239-0800
Poongsan FNS Corporation
57-2, Toyang-Ri, Eunjin-Myeon, Nonsan-City,
Chungcheongnam-Do, Korea
Phone : 82-041-740-5500
FAX : 82-041-741-7780
Poongsan Valinox Corporation
324-6, Hyosung-dong, Gyeyang-gu, Incheon
Phone : 82-32-556-4424
FAX : 82-32-556-4429
PNP Tech Corporation
404-8, Nojang-ri, Jeondong-Myeon, Yeongi-gun,
Chungnam
Phone : 82-41-863-9696
FAX : 82-41-863-9626
Overseas Affiliates
PMX Industries, Inc.
5300, Willow Creek Drive S.W., Cedar Rapids,
Iowa 52404, U.S.A
Phone : 1-319-368-7700
Fax : 1-319-368-7701
Poongsan(H.K.) Ltd.
Suite 1120, Ocean Centre 5, Canton Road,
Tsimsatsui, Kowloon, Hong Kong
Phone : 852-2-735-6330
Fax : 852-2-730-7396
Poongsan Metal Plant(Dongguan)
Foreign Trade Development Co., Hi-tec
Industrial Zone, Humen Town, Dongguan City, Guangdong Province, China
Phone : 86-769-8550-9745
Fax : 86-769-8550-9743
Siam Poongsan Metal Co., Ltd.
38/14 Laemchabang Industrial Estate Moo 5, T.
Tungsukla, A. Sriracha, Chonburi 20230 Thailand
Phone : : 66-38-400-056
Fax : 66-38-490-328
Poongsan (M) SDN BHD
PLO 683, Jalan Keluli, Zone , Pasir Gudang
Industrial Estate, 81700 Pasir Gudang, Johor, Malaysia
Phone : 60-7-255-3501/2
Fax : 60-7-255-3500
Poongsan Japan Corporation
Angyo-Kitaya 628, Kawaguchi, Saitama
334-0054, Japan
Phone : 81-48-297-6931
Fax : 81-48-297-6933
Poongsan America Corporation
601 South Figueroa St. Suite No.4600 Los
Angeles, CA 90017
Phone : 1-213-236-0300
Fax : 1-213-236-0308
Poongsan(Shanghai) Co.,Ltd
Jiatai Road No.105, Pudong Waigaoqiao Free
Trade Zone, Shanghai, China
Phone : 86-21-5868-0881
Fax : 86-21-5868-0882
Sales by Region (Activity
& Markets)
|
Sales/ Unit : KRW |
2006 |
2005 |
2004 |
|
Export |
932,157,504,887 |
692,031,601,634 |
560,899,276,754 |
|
Domestic |
818,327,701,585 |
665,576,487,683 |
612,492,708,312 |
|
Total |
1,750,485,206,472 |
1,357,608,089,317 |
1,173,391,985,066 |
The Subject deals with the companies in China Taiwan, Japan, Malaysia,
Thailand and Europe.
Court Action
No.
News Clipping
Korean firm makes the world’s coin blanks
JoongangIlbo & Joins.com: 02/20/2007
The office space of Poongsan Corp. doesn’t befit a company of its size
and status.
Chairman Ryu Jin and his 200 employees rent out two floors of a building
to run the world leader in manufacturing copper coin blanks. Poongsan’s
management doesn’t lack capital ― they’re simply following the wishes of the
late founder, Ryu Chan-u, who founded the company in 1968.
Mr. Ryu would say, “If we have money to build a new office, we might as
well spend it on new machines.” Ryu Jin, his second son, operates the same way.
On that foundation, Poongsan became one of the world’s top makers of copper
products, turning out 300,000 tons annually and jostling with Italy’s KM Europa
Metal and Finland’s Outokumpu on the international stage. Poongsan also
supplies some 60 nations, including the United States and European Union
members, with coin blanks, which were turned into coins used by 3 billon people
worldwide.
Poongsan’s competitiveness comes from its one-stop production process
― the firm centralizes all the necessary steps to make coin blanks in a
single factory.
The senior Mr. Ryu was known for his patriotism.
A descendant of Ryu Seong-ryong, an instrumental figure in the Joseon
Dynasty’s battle against Japan in 1592, Ryu Chan-u’s business philosophy was
never to do anything to harm or embarrass the nation.
That philosophy was hardly more apparent than in 1968, when he jumped
into the trading business in Japan’s copper industry, with no experience.
He founded Poongsan in the belief that, for the nation’s industry to
thrive, the material sector must flourish.
By 1969, Poongsan was operating a factory in Incheon, producing brass
and nickel by blending copper with zinc.
Fledgling local electronics companies could count on home-made
materials, which helped them cut costs and grow competitive.
In the 1970s, Poongsan began supplying Korea Minting and Security
Printing Corp. with coin blanks, and in 1973, its new factory in North
Gyeongsang province began producing military ammunition.
The company also started exporting coin blanks, its signature item.
The Taiwanese government was the first to buy them in 1973, followed by
Thailand, Singapore, Australia, Egypt, Israel and the Republic of South Africa.
Poongsan then expanded its export network to the United States, Japan,
Sweden and the European Union.
The company says that if one lined up all the coin blanks produced by
Poongsan, it would circle the globe 40 times.
Its factory in South Chungcheong province propelled Poongsan to global
leadership in copper, churning out 110,000 tons a year.
In addition to coin blanks, copper alloy sheets and pipes are also
shipped out.
In 2005, Poongsan’s exports amounted to $700 million.
In 1989, to facilitate Poongsan’s U.S. marketing, the company
established an affiliate in Iowa.
Mr. Ryu then forged a relationship with the American presidential
family.
When then U.S. President George Bush was visiting Korea in 1992, chief
executives at five Korean companies that invested in the United States were
invited to a dinner with him.
Mr. Ryu was among them, and he asked Mr. Bush if the president could
attend the tape-cutting ceremony for Poongsan’s new U.S. factory.
The president said he would try.
On the day of the ceremony, the president had a schedule conflict, so
First Lady Barbara Bush attended instead.
Since then, the Ryus and the Bushes have exchanged Christmas cards, and
have met whenever one family visits the other’s country. In November 2005, Mr.
Bush took a tour of the hometown of Ryu Seong-ryong, the Joseon dynasty figure,
in Andong, North Gyeongsang province.
With its new management, Poongsan has been trying to move past its
conservative corporate culture.
Ryu Jin, who assumed the chairmanship after his father’s passing in
1999, has frequented regional factories to familiarize himself with all facets
of the company. He hosts birthdays for employees and holds periodical
“hamburger meetings” with them.
He also hands out tickets to concerts and shows.
Thus Mr. Ryu is acting on the words spoken at his inauguration ―
that he’s not a chairman, but an employee who represents everyone else.
By Rah Hyun-cheol JoongAng Ilbo
FKI Faces Bumpy Road in Picking New Head
KOREA TIMES: 02-27-2007
By Park Hyong-ki/Staff Reporter
The Federation of Korean Industries (FKI) is facing a bumpy road in electing
its new chairman.
``After a careful discussion among the executive members of a selection
committee, we have unfortunately failed to reach a conclusion and decided to
delay our election of a new chairman,’’ Kim Jun-sung, an advisor to the federation,
said at a general assembly held at the FKI headquarters in Yoido, Seoul,
yesterday. ``We will try to find a potential figure by holding executive
meetings and an extraordinary session in the coming days.’’
Kim, who is also the interim head of the committee and the honorary
chairman of Isu Chemical, added that incumbent Chairman Kang Shin-ho whose term
expired yesterday will tentatively lead the nation’s biggest business lobby
group until the election is finalized.
FKI’s Vice Chairman Cho Kun-ho assured that the federation will do all
it can to pick a new chairman by next month.
``I believe that there are a couple of candidates wishing to run for the
top post,’’ said Cho in a press conference after the assembly, not revealing
who they are. ``The reason we couldn’t elect a new chairman was because we
needed to be more discreet and executive members failed to reach a consensus,’’
allegedly indicating that Cho Suck-rai, the chairman of Hyosung Group, was
facing some challenges in his bid for the post.
All were betting on the Hyosung chairman to take the helm of the FKI,
following Kang, as he is the most senior and has the longest experience in
leadership and management.
However, the FKI vice chairman said Cho is still included among those
eyeing the FKI chairmanship to be considered by the federation.
But Lee Joon-yong, honorary chairman of Daelim Group, hoped that the
next chairman would be young in his 50s or 60s.
``We should not even think about electing a new chairman who is over 70
years old,’’ said Lee during the assembly session. ``I, too, had been
approached by Chairman Kang for the top post, but I refused because I am too
old.’’
He expressed his dissatisfaction with the prolonged process and decided
to leave the selection committee, which included Kang, Cho, Cho Kun-ho, Park
Young-ju, chairman of Eagon Industrial and Ryu Jin, chairman of the Poongsan
Group.
The vice chairman said that the members of the selection committee are
likely to change following an executive meeting.
This is the first time in 46 years since its foundation that the chaebol
lobby group has failed to elect a new chairman.
Cho said that the top four industrial groups, including Samsung and
Hyundai Automotive, expressed their willingness to follow a decision that comes
out of the executive meeting.
Poongsan to Supply Materials for US Coins
KOREA TIMES: 12-27-2005
SEOUL (Yonhap) -- Poongsan Industries, a South Korean fabricated copper
and copper alloy products manufacturer, said Tuesday its U.S subsidiary will
supply materials for casting new $1 coins to the United States Mint.
The announcement came after U.S. President George W. Bush signed a bill
Thursday passed by Congress to mint the gold-colored coins featuring the faces
of 37 former U.S. presidents.
Poongsan's wholly owned subsidiary PMX Industries Inc. will provide the
materials for the new dollar coins, which will be issued over the next 10 years
starting in 2007, the company said..
The U.S. Mint is part of the Department of Treasury and is in charge of
producing currency.
The new $1 coin is called the "golden dollar" because of its
composition, which is 88.5 percent copper, 6 percent zinc, 3.5 percent
manganese and 2 percent nickel, the company added.
PMX Industries has been supplying materials for nickels, dimes, quarters
and dollar coins for about 10 years, according to the company.
RATING
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average/normal. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)