Lake Materials "Growth to Accelerate Centered on Semiconductor and Petrochemical Catalysts"

Organic Metal Material Developer Merges with Dongbu SPAC 5 for KOSDAQ Listing
Secures Korea's Only TMA Manufacturing Technology... Stable Growth Based on Technical Expertise

[Asia Economy Reporter Hyungsoo Park] Kim Jin-dong, CEO of Lake Materials, held a press conference on the 17th in Yeouido, Seoul, stating, "We were established to develop materials for light-emitting diodes (LEDs) that previously relied on overseas companies," and added, "We are leading the localization of materials by developing semiconductor and solar materials, as well as petrochemical catalysts, with our own technology."

CEO Kim continued, "After merging with Dongbu SPAC No.5 and listing on the KOSDAQ market, we will continue to grow based on our material technology," emphasizing, "We will contribute to the development of domestic advanced industries through the localization of high value-added materials."

Founded in 2010, Lake Materials is a developer of organometallic materials. Based on core technologies such as organometallic compound design and TMA (Trimethyl Aluminium) manufacturing technology, the company produces electronic materials for semiconductors, LEDs, and solar applications, as well as petrochemical catalysts. It supplies organometallic materials to Samsung Electronics, TSMC, KIOXIA (formerly Toshiba), EPISTAR, Hanwha Q CELLS, and LG Chem.

In 2018, the company recorded sales of 35.2 billion KRW, operating profit of 3.5 billion KRW, and net profit of 2.1 billion KRW. The average annual sales growth rate from 2011 to 2018 reached 43%.

CEO Kim introduced, "Lake Materials is the only company in Korea to have secured TMA manufacturing technology," adding, "It is a technology possessed by only four companies worldwide."

Additionally, he said, "In our core LED business division, we produce LED precursors, which are key materials for the Epi layer that generates light in LED lighting," and added, "We have achieved the number one global market share."

The solar business division supplies materials that prevent the conversion efficiency of solar panels from dropping. This is a rapidly growing field due to increasing demand for high-efficiency solar cells. In the semiconductor sector, the company supplies CVD/ALD deposition precursors used for high-k dielectric thin films and diffusion barriers, as well as specialty gases for semiconductors. Although sales were only around 600 million KRW in 2016, the business began to grow significantly from 2017, achieving sales exceeding 10 billion KRW. They expect sales to increase further this year by supplying new items.

The catalyst division supports a full package from metallocene compounds to MAO co-catalysts and supported catalysts. Only three companies worldwide, including Lake Materials, provide full-package next-generation catalyst products necessary for petrochemical production. The company recorded its first overseas sales last year. Major customers in Korea, Saudi Arabia, the United States, China, and India are conducting certification evaluations. As refining and petrochemical companies increase production of high value-added polymer products, the growth potential of Lake Materials' catalyst division has also expanded.

The lead underwriter for the listing is DB Financial Investment. The extraordinary general meeting for merger approval will be held on the 30th. The scheduled listing date for the merger new shares is March 23.