KUMHO P&B CHEMICALS

COMPANY

Affiliates

The Kumho Petrochemical Group produces world-class petrochemical products
and comprehensive chemical solutions.

Kumho Petrochemical

Date established: December 28, 1970
Areas of business: Petrochemicals (synthetic rubber, synthetic resins, precision chemicals, electronic materials, Nano-carbon, energy materials, building materials, etc.)
Telephone: +82-2-6961-1114
Fax: +82-2-6961-1449
Web site: http://www.kkpc.com
Main location: Floors 10 through 14, Signature Tower (East Wing), 100 Cheonggyecheon-ro, Jung-gu, Seoul

First established in 1970, Kumho Petrochemical has grown into the world’s largest producer of synthetic rubber, and now produces a wide range of petrochemicals, including synthetic resins, precision chemicals, electronic materials, nano carbon, energy materials, and building materials. Having played a leading role over the last four decades in Korea’s industrialization, the company now strives to become a global leader of petrochemicals, capable of developing and producing cutting-edge and innovative materials.

Kumho Petrochemical

Kumho Mitsui Chemical

Date established: September 11, 1989
Areas of business: Chemical products (MDI) manufacturing
Telephone: +82-2-6961-1114
Fax: +82-2-6961-3779
Web site: http://www.kmci.co.kr
Main location: Floor 11, Signature Tower (East Wing), 100 Cheonggyecheon-ro, Jung-gu, Seoul, Korea

Kumho Mitsui Chemicals, a joint venture company established by Kumho Petrochemical and Mitsui Chemicals, manufactures MDI, a core material of polyurethane that is used to manufacture automotive interior components, refrigerators, building materials, and synthetic fibers. To cope with the continuous development of appliances and the automobile industries in Asia, we are always creating innovative technologies and currently expanding our manufacturing facilities. We are the largest domestic supplier with a total of 200,000 tons in 2013.

Kumho Mitsui Chemical

Kumho T&L

Date established: September 22, 2009
Areas of business: Cargo transportation, shipping, warehousing and related services
Telephone: +82-2-6961-1114
Fax: +82-2-6961-3529
Web site: http://www.ktnl.co.kr
Main location: Floor 8, Signature Tower (East Wing), 100 Cheonggyecheon-ro, Jung-gu, Seoul, Korea

Kumho T&L helps Kumho Petrochemical’s Co-Generation Plant and other businesses in the Yeosu National Industrial Cluster minimize the cost of having their goods shipped and handled by specializing in the shipping, handling, transporting, and warehousing of bituminous coals, a major raw material in demand in the cluster. As the first storage house in Korea to have adopted a silo-style system, the company minimizes problems associated with outdoor storage (including dust, water leakages, noises, and proneness to inflammation), while maximizing fuel efficiency. The company plans to expand its business in the future to include forwarding and marine shipping as well.

Kumho T&L

Kumho Polychem

Date established: June 5, 1985
Areas of business: Synthetic rubber (EPDM)
Telephone: +82-2-6961-1114
Fax: +82-2-6961-3811
Web site: http://www.polychem.co.kr
Main location: Floor 9, Signature Tower (East Wing), 100 Cheonggyecheon-ro, Jung-gu, Seoul, Korea

A joint venture company of Kumho Petrochemical and JSR of Japan, Kumho Polychem has revolutionized the automobile manufacturing industry in Korea by localizing the production of EPDM, a synthetic rubber that is a crucial ingredient of automotive parts and other industrial goods, for the first time in Korea. Now, as Asia’s largest and the world’s third-largest producer of EPDM (with a production capacity of 160,000 tons a year), the company continues to thrive thanks to the economic growth of Asian countries, the increasing offshore production of Korean automakers worldwide, and the globalization of automotive manufacturing companies.

Kumho Polychem

Kumho Trading

Date established: September 29, 2009
Areas of business: Overseas trading, road maintenance, asset management, insurance, advertising
Telephone: +82-2-6961-1114
Fax: +82-2-6961-3399
Web site: http://www.kumhotrading.com
Main location: Floor 4, Signature Tower (East Wing), 100 Cheonggyecheon-ro, Jung-gu, Seoul, Korea

Established to steer the group-wide efforts for developing new markets and businesses and also to participate in a wide range of trading and related activities, Kumho Trading provides trade insurances, supports MRO projects, and also conducts road management and maintenance businesses. The company’s widening portfolio today includes: trading foodstuff and grain resources to and from South–Central America and Europe; developing resource recycling businesses; importing raw materials into Korea; and managing the Gyeongsu National Expressway (including the Baegyang Tunnel in Busan) and the Seohaean National Expressway II.

Kumho Trading

Korea Energy Power Plant

Date established: June 1, 2012
Areas of business: Electricity and solar energy generation
Telephone: +82-2-6961-1114
Fax: +82-2-6961-1419
Web site: -
Main location: 8+82-2 Yucheon-ri, Sanam-myeon, Sacheon, Gyeongsangnam-do

Korea Energy Power Plant is a special-purpose corporation established to generate solar energy. Its main concerns are the installation and distribution of rooftop solar energy facilities. The solar energy panels installed on the rooftops of the Korea Aerospace Industries’ factory and warehouse form the largest solar energy facility for a single region (5.32 MWh) in Korea. The plant strives to develop and distribute newer and better models of solar energy distribution.

Korea Energy Power Plant

(company-specific) Approved EXporter

This system has been introduced to provide support for time and cost savings at the time of issuing a certificate of origin as an increasing number of countries have signed free trade agreements.

A system where the customs authorities provide any exporter approved as capable of proving the origin of the goods with such benefits as simplified procedures for the issuance of certificates of origin, omission of the submission of attached documents, etc.

* Korea-EU FTA : In the case of the exportation of any consignment consisting of originating products whose total value exceeds 6,000 euros, only an approved exporter can self-issue a certificate of origin.
* Korea-ASEAN, China, India, Singapore, Vietnam FTA : Submission of attached documents may be omitted when applying for the issuance of a certificate of origin.
* Korea-EFTA FTA : When an exporter self-issues a certificate of origin, such exporter’s signature may be omitted.

Differences between the company-specific AEX and the product-specific AEX.

ㅇThe company-specific approved exporter system is a blanket authorization system where the procedures for issuing a certificate of origin are operated in a simplified way for all the free trade agreements and all the export goods.

ㅇThe product-specific approved exporter system is a system where the procedures for issuing a certificate of origin are operated in a simplified way after granting authorization as an approved exporter for each relevant FTA and the six digits of each relevant HS code.

AEO (Authorized Economic Operator)

An authorized economic operator (AEO) is a “party involved in the international movement of goods in whatever function that has been approved by or on behalf of a national customs administration as complying with the World Customs Organization (WCO) or equivalent supply chain security standards.” Authorized Economic Operators include companies and parties concerned that are related to logistics such as importers, exporters, transporters, transportation brokers, warehouses operators, and customer brokers. The AEO concept was established by the WCO and the international community to ensure the security and smooth movement of goods in response to the U.S. trade security measures, which were reinforced after the September 11 attacks.

The introduction of the AEO program enables customs administrations to reject existing practices that had granted selective benefits of customs clearance procedures, which are based on fragmentary standards by the distributor and instead, evaluate the sincerity all distributors based on integrated standards. Consequently, once recognized as excellent, the company can enjoy comprehensive benefits in customs processes, which range from customs clearance for import and export to tax payment.

Three Features of the Korea AEO System

1. The integrated operation of the Business Evaluation System and the Security0 Management System can avoid the overlapping evaluation of a company.

2. The internal control system of a company is autonomously strengthened to increase the degree of law compliance.

3. The ASC concept is more specified. The Korean AEO system is focused on giving benefits by connecting overseas export networks with domestic import networks. Once an AEO status is given to all relevant companies, such as overseas producers and transporters (exporters), international transportation brokers, domestic cargo handlers, warehouse operators, customs brokers, and importers, they can receive unprecedented benefits.

Responsible Care

Responsible Care (RC) is a global initiative with regard to the environment, safety and health, where most of the developed countries and multinational companies are involved. This is the most comprehensive and long-term program practiced by the chemical industry. RC is a concept that even covers the local residents’ safety and the employees’ health by complementing the existing ISO 1400 (Environment Management), which was mainly engaged in the environment. It is also a voluntary management movement where companies participate with responsibility, which is different from existing regulations-centered environmental policies.

Even though the chemical industry has played a pivotal role in all the industries, it has been recognized as a culprit in the current negative issues because of the emphasis on the risks of chemicals. In this context, the purpose of this initiative is for chemical companies to have more endeavors to ameliorate environmental safety, thus simultaneously recovering its reliability and improving its image.

After adopting RC in 1992, Korea established the Korea Responsible Care Council (www.krcc.or.kr) in December 1999 and became a member of the Responsible Care Leadership Group in September 2000. Factory 1 of Kumho P&B Chemicals has also been actively engaged in the RC initiative after signing a voluntary agreement.