[Asia Economy Reporter Jang Hyowon] KOSPI-listed company Gukbo (CEO Ha Hyun) announced on the 16th that the KF94 masks certified by the Ministry of Food and Drug Safety, produced in collaboration with SkyBio, were approved by the U.S. Food and Drug Administration (FDA) on the 14th (local time).
As a result, the 200 billion KRW mask business signed on July 23 between Gukbo, EDGC Healthcare, and SkyBio is expected to accelerate further, and it is evaluated that a foothold for Gukbo’s mask exports has been established.
On July 16, Gukbo disclosed through an ‘Acquisition of Tangible Assets Decision’ that it would acquire 32 KF-type mask production facilities for 6.864 billion KRW. The down payment has been completed, and the remaining 5 billion KRW will be paid by issuing convertible bonds (CB) on September 23.
Gukbo’s KF-type mask production facilities are ‘3D 4-layer mask manufacturing automatic equipment,’ with a maximum production capacity of up to 70 masks per minute per unit, boasting excellent production capacity and low defect rates.
According to a company official, the testing of the 32 machines is in the final stages. Once all settings are completed, a full-scale mask production system will be established, enabling a minimum monthly production of 20 million masks (based on 10 hours of equipment operation per day). Additionally, by acquiring 68 more mask production facilities, Gukbo expects to build the largest domestic production system.
Among listed companies, only Gukbo and Kukje Pharm have masks certified KF94 by the Ministry of Food and Drug Safety and have obtained FDA approval and export supply contracts. Kukje Pharm received FDA approval and signed a mask supply contract worth 9.8 billion KRW on the 11th.
On the other hand, Welcron received FDA approval in early June but has yet to sign an export contract, and Hancom Healthcare, a subsidiary of Hangul and Computer, has signed an export contract for 4 million masks per month to the U.S. but reportedly did so without FDA approval.
Amid the intensifying global resurgence risk of the novel coronavirus disease (COVID-19), the World Health Organization (WHO) announced on the 14th that the daily new confirmed cases reached a record high of 307,930.
According to WHO, India recorded 94,372 new cases on the 13th, the U.S. 45,523, and Brazil 43,718 on the same day. European countries are also seeing an increase in daily new cases, spreading serious concerns. In this situation, a favorable export environment is being created, and the importance of mask-wearing is being emphasized worldwide.
In particular, overseas trust in KF masks is increasing. Recently, at a business briefing held in the basement level 1 of a building in Daegu, 26 out of 27 residents who attended were confirmed COVID-positive, but the one person who continuously wore a KF94 mask during the 3-hour briefing was the only one not infected, demonstrating the excellence of the KF94 mask.
Ha Hyun, CEO of Gukbo, said, “This FDA approval is significant as it establishes a foothold for mask exports,” adding, “We have entered an era where masks are not a trend but a part of daily life. Gukbo will contribute to overcoming the global COVID-19 crisis beyond Korea by establishing a stable mask production and supply system and widely promoting the excellence of Korean masks and the K-quarantine model overseas.”
Meanwhile, Gukbo has subsidiaries such as Bogner and Buxi, and despite the very challenging situation due to the COVID-19 crisis, it achieved sales of 55.4 billion KRW based on the latest semi-annual consolidated report, showing a high sales growth rate compared to the previous year’s 33 billion KRW. As Gukbo’s mask business gains momentum, continuous sales growth and profitability improvement are expected.
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