[MZ Successor] ④ Park Jun-kyung Leading Management, Accelerating New Businesses like CNT

Rare 'Sales Expert' Successor in Business Circles
Led NB Latex Business During COVID-19 Period
Proved Management Ability Through Performance
Expanding New Businesses Such as CNT and EPDM

Editor's NoteAlthough the new year has begun, the business environment faced by companies remains challenging. With the arrival of the '3 highs and 1 low' complex crisis?high inflation, high exchange rates, high interest rates, and low growth?companies are struggling to find solutions to overcome the crisis. A place where one can closely observe the efforts to turn this crisis into an opportunity is in management leadership. It is no exaggeration to say that the rise and fall of groups depend on the choices made by the third and fourth generation successors of the MZ generation in the business world, who have stepped up to the forefront of management to inherit family businesses. We take an early look at the activities of those leading corporate change by devising new businesses, pioneering markets, or improving company management systems in line with changing times.

[Asia Economy Reporter Jeong Dong-hoon] Park Jun-kyung, President of Kumho Petrochemical, has taken the lead in management this year. Unlike other successors in the business world who mainly oversee group-wide business through strategy, planning, and finance, Park has over ten years of experience working in sales, gaining solid expertise. Based on his field sales experience, he is said to be focusing on new business specifics such as carbon nanotubes (CNT) and functional synthetic rubber (EPDM).

◆Who is Park Jun-kyung, the third-generation leader at Kumho Petrochemical leading the group?=Born in 1978, Park is the son of Park Chan-gu, Chairman of Kumho Petrochemical Group. After graduating from Korea University with a degree in Environmental Ecology Engineering, he joined Kumho Tire as an accounting team deputy manager in 2007 and moved to Kumho Petrochemical in 2010. Since then, he has served as an executive in overseas and synthetic resin sales divisions and was promoted to Vice President and Head of Sales Division in 2021, overseeing both domestic and international sales.

In December last year, he was promoted to President of Kumho Petrochemical, just a year and a half after becoming Vice President. In the business community, this promotion is seen as a signal that Kumho Petrochemical Group is officially starting third-generation management. Park is already involved in overall management as a member of Kumho Petrochemical's board of directors. He is expected to expand his influence within the group by taking on more responsibilities.

Park Jun-kyung is a 'sales expert' who has built domestic and international networks in the sales division. It is widely acknowledged that his role was significant in Kumho Petrochemical's excellent overseas business performance over the years.

Park also demonstrated outstanding management acumen by leading the expansion of NB latex production, which recently drove Kumho Petrochemical's performance. NB latex, a raw material for sanitary gloves, saw a surge in sales after COVID-19. During his tenure as Head of Sales Division, Park pushed for a production facility expansion worth 256 billion KRW, allowing Kumho Petrochemical to benefit from the NB latex boom.

In 2021, Kumho Petrochemical recorded sales of 8.4618 trillion KRW. Operating profit increased by 224.3% year-on-year to 2.4068 trillion KRW, marking the best performance in ten years.

◆Betting on the carbon nanotube business as future growth engines in 'battery and eco-friendly materials'=Ongoing sluggishness in the petrochemical industry since last year presents a new challenge for President Park. The core businesses of synthetic rubber and synthetic resin are struggling due to a global demand contraction.

Therefore, Kumho Petrochemical eagerly anticipates quick results from its materials business, which prepares for the eco-friendly mobility era. The CNT sector, which Park is focusing on, is a representative future growth engine for Kumho Petrochemical Group. CNT is a next-generation material with electrical and thermal conductivity comparable to copper and diamond, and strength 100 times that of steel. Its applications are vast, including electric vehicle batteries, conductive coatings, automotive electrostatic painting exterior materials, and planar heaters.

Kumho Petrochemical currently produces 120 tons of CNT annually at its Asan plant. CNT is used as a key conductive material in batteries, facilitating the flow of electricity and electrons. When applied to batteries, it can achieve conductivity over 10% higher than existing materials and increase battery capacity and lifespan.

In line with the growth of the electric vehicle battery market, Kumho Petrochemical is also considering expanding CNT production facilities. By next year, it plans to complete the Yulchon plant to increase CNT production capacity to 360 tons per year. The company aims to triple annual production to quickly catch up with leading players like LG Chem. This trend is also reflected in recent performance. The share of other business divisions, including future materials like CNT, is growing within total sales.

Sales from this division, which were below 10% (394.4 billion KRW, 8.30%) in 2020-2021, have now exceeded 10%. As of the third quarter last year, sales from other business divisions reached 498.2 billion KRW, accounting for 12.4% of total sales. With the upcoming completion of the Yulchon plant next year, the company plans to establish new revenue sources alongside existing businesses. By the end of this year, it will also complete an expansion to double the production capacity of solution styrene-butadiene rubber (SSBR), a high-performance synthetic rubber used in tire materials, from 63,000 tons to approximately 123,000 tons.