KD, Enters Indonesian Coal Energy Business

Establishment of Local Energy Business Corporation in the First Half of the Year

Comprehensive construction company specializing in real estate development, KD Co., Ltd., announced on the 4th that it is entering the overseas resource development and sales business.

KD's holding company, KD Technology Investment, invested a 5% stake in the holding company of the coal mine developer located in South Kalimantan, Indonesia, ‘PT.ABH (PT. ANUGERAH, BARA HAMPANG)’ in 2021, and commercial production began in January this year.

Going forward, KD plans to strengthen cooperation with PT.ABH and expand its business. The mine currently being developed by PT.ABH is estimated to contain about 11 million tons of high-calorie coal with over 7000 kcal, and it is valued at more than 2 trillion KRW.

KD is negotiating a subcontract for one mining section being developed by PT.ABH, and based on the experience gained here, plans to actively enter Indonesia's coal energy business by expanding investment in mining resources.

To this end, KD plans to first invest 1 million USD in Kalimantan in the first half of the year to establish a local energy business corporation, and aims to start coal trading business as early as September.

A KD official stated, “We plan to secure new growth engines through coal trading business and expanding mining equity investment in Kalimantan, Indonesia,” and added, “We will also continue to strengthen the capabilities of our domestic business sector to achieve stable diversification of our business portfolio.”

KD is a KOSDAQ-listed company with two main pillars: real estate development business and electronics business (manufacturing of electronic communication components).

In particular, in its core field of real estate development, KD has achieved continuous growth by supplying various buildings ranging from commercial facilities to office buildings, officetels, and housing projects since 2013. Last year, despite the recent real estate market downturn, it achieved a 421% increase in sales (consolidated basis).

At the shareholders' meeting held on the 31st of last month, KD decided to add new business objectives due to entry into new businesses and to establish an energy business division. It also began recruiting experienced personnel for overseas resource development and sales.

At the shareholders' meeting, KD Chairman Ahn Tae-il said, “By adding overseas resource development to our business structure that had focused on housing projects, we can now compose a diverse portfolio,” and added, “We will actively pursue ways to secure continuous growth engines for KD in the future.”