2018 January & February CONTENTS 24-25 Global Network 2018 / 01+02 India 26-29 Local Office Achieving Steady Performance with Customer Satisfaction KCC Paint India Pvt Ltd (KCI) 30-31 Interview Standing at the Forefront of Key Industries 32-33 Market Trend In the Limelight Huge Market and the Little India Strategy 34-37 Cultural Walks Rediscovery of Madras and Chennai Proud KCC 04-05 Message from the Chairman 38-41 Hidden Korea Wishing good luck for the New Year Korean New Year's Day “Seollal” 06-09 CEO Interview 42-43 Traditional Goods The culmination of care and artistic 10-11 Intro senses, Bojagi The Power of Global Network 44-45 KCC News 12-13 KCC Campaign 2018 January & Febuary -INDIA- Communication&Connection 46 KCC QUIZ 16-21 Product Research Add Classiness to your Life with KCC KCC Magazine 47 Company Song No.300 Date of issue February 1, 2018 Report Number Seocho La 11683 Report date August 17, 22-23 KCC History 2016 Publusher Mong-Ik Chung Editor Mong-Ik Chung Global KCC : INDIA KEUMKANG SLATE Publicated by KCC (344 Sapyeong-daero, Seocho-gu, Taking the First Step Seoul, Korea) Edited and Designed by Lucksway in the 60-year History of KCC Message from the Chairman Reinforcing global market power and broadening our R&D capabilities it is capable of providing solutions that creating value, such as social contribution and suit customer needs based on inimitable environmental contribution. In recent years, technology and quality competitiveness. our sustainability management activities have Last year, a considerable number of received considerable accolades, including Korean companies experienced difficulties repeatedly winning international awards in conducting business projects in China along with other leading global companies. ear KCC employees, The turn expected to usher in a low-growth due to the THAAD issue. However, KCC’s I find this very inspiring. Going forward, year 2018 has dawned. I phase in the Korean economy, making the waterborne container coatings managed KCC shall continue to pursue the path of wish all KCC employees corporate environment increasingly difficult to achieve the highest growth ever in the coexistence by fulfilling its economic, social in Korea and abroad a in South Korea. Securing international Chinese market. The achievement was made and environmental responsibilities. happy and hope-filled new competitiveness by expanding into global possible because KCC had already acquired D year. Despite optimistic markets which offer unlimited possibilities excellent ecofriendly coating technology. Distinguished KCC employees! economic forecasts that the global economic and opportunities is a goal that any enterprise I would urge you to spur the research and 2018 is a meaningful year in that it is the situation would improve this year, there must achieve for its long-term survival. To development of eco-friendly cutting-edge 60th anniversary of KCC’s foundation. I is continuing concern that South Korea this end, we will establish new production future technology and high-value-added would like to ask all KCC employees to may deviate from the global economic subsidiaries in Tianjin and Chongqing in products so that we can always be prepared commit yourselves to writing a new history recovery. Given these uncertain economic China and accelerate the localization of for the future and take the lead in global of “100-year-old company KCC” through circumstances, we shall take this year as the new regions such as Russia, India and the technology. continuous change and innovation by first year to secure our core competitiveness Middle East, thereby aggressively pioneering fulfilling your respective roles as per our for long-term corporate growth and realize overseas markets and expanding our global Third, let’s pursue sustainable founding philosophy. I look forward to the following management goals. network. management. witnessing KCC’s dynamic challenging spirit, Sustainable management is a type of overcoming its limits and pioneering the First, let’s secure our long-term Second, we need to strengthen our management that aims for sustainable growth future. I once again wish you all good luck corporate competitiveness by R&D capabilities to have an edge over through the enhancement of the company’s and good health for the New Year, and I hope strengthening our global influence. our competition. value and competitiveness by means of all your wishes come true. Thank you. South Korea’s population cliff is expected An enterprise can acquire a level of emphasizing the transparency, integrity, and to trigger a consumption cliff and raft competitiveness sufficient enough to be morality of management. This is in addition Mong-Jin Chung, Chairman of industrial changes, and these are in impervious to external risks only when to the traditional managerial values and New Year’s Day of 2018 04 05 CEO Interview KCC CEO Mong-Ik Chung stressed in his New Year speech that, given the rapid pace of change today, KCC employees need to cultivate the strength and flexibility to respond to Building a competitive edge such change and prepare themselves for the future. The keywords CEO Mong-Ik Chung by optimizing network emphasized in the speech were “network activation and asset optimization”. assets and technical information What is your overall assessment of KCC’s high-value-added synergies through company-wide performance in 2017? technology sharing, thereby creating a future growth 2017 was a year of weak growth due to a number of engine for the company. To this end, I’d like to carry out risk factors affecting the Korean and international the following three major management policies together. economy. However, in spite of the economic stagnation, we managed to make steady progress last year in the First, let’s create synergy by optimizing our construction materials sector. This was thanks to the internal and external network assets. way we monitored and promptly responded to market We have a broad range of technologies and product changes. In addition, last year we normalized our groups that encompass both organic and inorganic silicon and materials business as a result of our multi- products, so our sales network is equally far-reaching. year efforts for strengthening our market technology. These wide-ranging technologies and network assets are However, in the coatings sector, we performed relatively our major strengths. The value of a company’s asset is poorly last year, but we nonetheless attempted to realized only when the company uses the asset properly. make a fundamental change based on technical sales. For that, as the company grows bigger, its distribution I would like to express my sincere gratitude to all KCC network and technology management system must also employees for their hard work. become more efficient and systematized. In the future, we will put more varied products into our existing What is your outlook on the domestic and networks and maximize our distribution network by foreign economy for 2018, and what are KCC’s managing them in a manner optimized for their regional management goals for 2018? characteristics. In terms of technology, I want to ask you Although many are optimistic about the global to develop high-value products tailored to fit the needs economy recovering in 2018, led by growth in advanced of a diverse range of customers, including powerful countries, there are also many negative factors such as general-purpose products capable of satisfying various the slowdown in the domestic economy. As such, when customers. Over the past 60 years, our company has the future is unpredictable, it is especially necessary to achieved remarkable growth acquiring a considerable make thorough preparations so that we can promptly number of rock-solid technologies. However, as respond to market changes. We need to not only activate the company has grown bigger in size, our growth our network and technology assets, but also create performance in relatively small-sized businesses has 06 07 become inconspicuous. In response, we reformed our company intends to greatly strengthen our research for manufacturing companies such as ourselves. To Lastly, now that 2018 has kicked off, please give small-sized business-related organizations last year. based on customers’ technical needs in the future. This realize the Smart Factory, a core concept of the 4th KCC employees a New Year message and some This is a strategy aimed at establishing dedicated year, we plan to build a large-scale pilot infrastructure Industrial Revolution, we must first acquire data advice. organizations for growth-focused products whose sales at our CRI in order to assure the production quality through the automation of our production sites. Even amid the low growth trend that has been going have been stagnant for a long time and at managing and reliability of our products from an early stage. In To that end, we will assure the highest quality and on for years, the world is constantly moving forward such products responsibly. Through this strategy, addition, we plan to reinforce our research personnel reliability of our products through Manufacturing and changing ever faster. Assuming that unmanned we will foster specialized personnel and strengthen in all areas and provide in-depth training. Be aware Execution System (MES) based data acquisition and trucks will come into our factory, what should we our expertise, and based on that, we will constantly that the product design and assurance of reliability, automation, and afterwards, we will aim to make prepare now? As the saying goes, “The future belongs cultivate related markets. Executives for each product, the two essential elements for production optimization progress in production, technology, and customer to those who prepare for it today,” if you develop the for each business division, and at each head office must stem from research, and I encourage you to make more service based on the analysis of those data.