[Masked Listed Company] Kukbo Targets Overseas Markets with 'Unique Certification'

Mask factory of EasyN Korea, a partner company of Gukbo.
Photo by Jang Hyowon

[Asia Economy Reporter Jang Hyowon] Comprehensive logistics company Gukbo has entered the mask business. The company started the business in collaboration with a manufacturer equipped with mask production facilities certified by the Ministry of Food and Drug Safety (MFDS). Gukbo is responsible for mask sales and marketing.

Gukbo is focusing its capabilities on obtaining global certifications for mask exports. It has received certification from the American Society for Testing and Materials (ASTM), recognized by the U.S. Food and Drug Administration (FDA), and is currently the first in Korea to proceed with the FDA’s final certification stage, the ‘510k’ program. On the 1st of this month, it also obtained the European CE certification.

Obtaining ‘Global Certification’ for Export

Gukbo officially entered the mask business in June last year, when COVID-19 was still spreading. Since it had no prior experience in the mask business, it partnered with ‘EZN Korea,’ a company with excellent manufacturing capabilities, to start the business.

The business structure is such that Gukbo supplies raw materials to EZN Korea, which manufactures and delivers the products. EZN Korea owns a factory certified by the MFDS, enabling the production of masks with certified quality. Gukbo handles mask orders, overall contracts, marketing, and domestic and international certifications.

Gukbo invested approximately 10 billion KRW to install 47 KF94 mask manufacturing machines at EZN Korea’s factory. The current production facility covers a cleanroom area of 1,200 pyeong and a warehouse of 450 pyeong. The production capacity is about 90 million KF94 masks and 47 million dental masks per month, sufficient for large-scale orders.

KF94 mask manufacturing equipment. /Photo by Jang Hyowon

The strength of the masks produced by Gukbo lies in their overseas certifications. Last month, Gukbo announced that its ‘EZ Guard Mask’ has obtained ASTM Level 3 certification. ASTM is an organization that sets standards for materials and testing, and its certification is also recognized by the U.S. FDA.

Level 3 is the highest grade in ASTM. Currently, only two companies in Korea, including Gukbo, have obtained Level 3 certification for KF94 masks. Gukbo is the only company to have achieved Level 3 certification for dental masks as well.

Gukbo is currently undergoing the FDA’s final certification stage, the ‘510k’ program. The 510k program is a process where a product registered for sale with the FDA is compared to an already certified product to prove that it is safe and effective as a medical device.

While anyone can easily register a product code with the FDA, completing the 510k program means obtaining final FDA certification. Until now, no Korean mask manufacturer has received final FDA certification for surgical mask codes.

A Gukbo official said, “We expect to complete the 510k program by the end of this month and are focusing on marketing through a North American distributor. With the European CE certification for KF94 and dental masks obtained, preparations for exports to North America and Europe are complete.”

In addition to overseas expansion, Gukbo is also striving to increase sales domestically. Recently, Gukbo completed registration to participate in competitive bidding with the Public Procurement Service. The company plans to focus on government agencies and other public institutions to secure stable sales channels.

Sealing the mask after packaging.
Photo by Jang Hyowon

Securing Profitability and Driving Future Growth Engines

Gukbo expects synergy between its mask business and its core container transportation logistics business. It plans to increase cargo volume and improve profitability through the mask business. The container transportation logistics business has been somewhat stagnant amid fierce competition over the past three years, but the mask business is expected to invigorate it.

Once the mask business starts generating profits, it is expected to become one of the two main pillars supporting Gukbo, alongside its subsidiary Vog International. Vog International’s golf apparel brand ‘BOGNER’ showed growth last year as the golf population increased despite COVID-19. Additionally, Vog International will be responsible for exporting masks to Europe in cooperation with its German headquarters, BOGNER.

On a solid foundation stands Gukbo’s future growth engine, ‘Buxi.’ In 2019, Gukbo acquired the mobility company Buxi. Through Buxi, Gukbo is building a platform to apply optimization technology secured in mobility to logistics.

A Gukbo official stated, “The mask market is expected to continue expanding, enhancing corporate value. We will invest in company growth so that Gukbo’s 68-year history can continue beyond 100 years.”