BROCHURE 2017 #22, Seonyudong 1-ro, Yeongdeungpo-gu, Seoul, Korea SM R&D Center : #78 Magokjungang 8-ro, Gangseo-gu, Seoul, Korea Vision A respected company that engages in social responsibility through moving management and win-win management. Creative and challenging of Technology and “Young Enterprises” Innovation of Sm Group’s corporate culture goal is “Changing Enterprises” to create a young, enthusiastic company that challenges our employees with Our goal is to be a changing enterprises that entrepreneurial dreams and motivation. creates the best products and services through continuous research and technology development, and does not fear innovation and change. SM GROUP is bringing about a better future and a higher quality With customer of life for everyone. satisfaction and trust of “Trusted Enterprises” SM Group, which has been acknowledged for its eco-friendly products and the best quality, is aiming at companies that place importance on faith and trust with customers. Affiliated Companies History Chemical materials(chemical fiber), construction & engineering, building materials, With its roots firmly entrenched in the construction business, SM Group has dynamically energy(secondary batteries), automotive parts, electronic toll collection, steel material and shipping business grown its business portfolio into manufacturing and service businesses through several significant mergers and acquisitions over the years. Early Years 1988 ~ 2003 Establishment 2008 ~ 2017 The success of Samra MidasVill laid the 2008.05 Incorporated TK CHEMICAL Manufacture foundation for our growth as a Group 2010.12 Incorporated WOOBANG 1998. 01 Samra Engineering & Construction 2011.04 Initial public offering (IPO) TK CHEMICAL •TK CHEMICAL •SM LIFE SCIENCE •NAMSUN ALUMINUM •NAMSUN ALUMINUM Automotive parts established 2011.06 Incorporated HIPLUS CARD •KNWOOL TEXTILE •BEXEL •SHINKWANG •KNG STEEL •CHOYANG 2011.10 Incorporated SHINCHANG CONSTRUCTION Growth 2004 ~ 2007 •KNWOOL TEXTILE GMB •SEOULIM HIGHPACK •ADM21 •HANDUK IRON MINE 2012.04 Incorporated JEIL GMB 2012.12 Incorporated KT CERAMIC 2012.12 Incorporated SEOULIM HIGHPACK Co., Ltd. Construction 2004. 05 Incorporated JINDUK INDUSTRIAL Co., Ltd 2013.05 Incorporated HAKSAN CONSTRUCTION • WOOBANG • WOOBANG ENGINEERING & CONSTRUCTION • WOOBANG INDUSTRIAL 2005. 05 Incorporated CHOYANG Co., Ltd 2013.10 Incorporated KOREA LINE CORPORATION 2005. 12 Incorporated BEXEL Co., Ltd 2014.08 Incorporated SM LIFE SCIENCE • DONGAH CONSTRUCTION INDUSTRIAL •TAEKIL CORPORATION.LTD • SAMRA 2006. 06 Incorporated NAMSUN ALUMINUM 2015.12 Incorporated ADM21 & SM CREDIT INFORMATION AUTOMOTIVE PARTS Shipping Industry (formerly Daewoo Life) Co., Ltd (Formerly Solomon Credit Information) 2006. 11 Incorporated KNWOOL 2016.08 Incorporated SUNGWOO CONSTRUCTION Co., Ltd TEXTILE GMB Co., Ltd •KOREA LINE CORPORATION •KOREA SHIPPING CORPORATION •SM LINE CORPORATION Incorporated TAEKIL CONSTRUCTION Co., Ltd 2007. 01 Incorporated Acquired 2016.12 Incorporated KOREA SHIPPING CORPORATION NAMSUN ALUMINUM Co., Ltd Service Incorporated SM LINE CORPORATION Incorporated DONG AH CONSTRUCTION INDUSTRIAL •HIPLUS CARD •SM CREDIT INFORMATION •SANBON STATION Shopping Center •SAMRA HOPE FOUNDATION INDUSTRIAL Co., Ltd. Incorporated SHINKWANG Incorporated KNG STEEL Co., Ltd. Incorporated HANDUK IRON MINE Chairman’s Message In good times and in bad, customer value remains the overarching value at SM Group. Our very existence depends on customers, which is why we always try to conduct our business from their point of view. In fact, our prompt response to their needs has been the driving force of our growth over the years. Today, customer value comes before everything else in our business activities. This is how SM Group ensures its continued growth while maintaining the unparalleled trust of customers. Moving forward, this will remain the defining principle when we carry out our business, even as we continue with R&D efforts to introduce better products and services. The trust our customers bestow upon us is the driving engine that propels us forward as we work hard to make life better for individuals, organizations, and society as a whole. At the same time, interdependence and co-existence among all stakeholders is imperative in our sustainable growth. To that end, we are working tirelessly to build a platform for mutual growth with our stakeholders. This also extends to our labor union, subcontractors, customers and investors, all of whom are helping to facilitate the sustainable growth of SM Group. While putting co- prosperity with customers and society first, SM Group will continue with its ethical practices in all business activities and in a highly transparent and fair manner. Additionally, we will faithfully fulfill our corporate social responsibilities, while maintaining a high level of trust with customers, stockholders and investors. Chairman of SM Group Oh-Heun Woo MANUFACTURE Constant research and development for a prosperous future SM Group leads the development of eco-friendly products ahead of the future. TK CHEMICAL SHINKWANG SM LIFE SCIENCE1KNG STEEL NAMSUN Aluminum CHOYANG NAMSUN Aluminum Automotive parts SEOULIM HIGHPACK KNWOOL TEXTILE GMB Department ADM21 KNWOOL TEXTILE KTCeramic Department HANDUK Iron Mine BEXEL SM Group Brochure 2017 _ 11 TK CHEMICAL By drawing upon its advanced technology and the R&D know-how it has accumulated In the fiber industry over the years, CHEMICAL SECTOR / TK CHEMICAL has established itself as Korea’s leading chemical materials manufacturer with its original and impeccably Polyester Filament Yarns made quality products in the polyester, spandex and PET-resin business. The company has set up house construction PRODUCTS to enlarge synergy with SM group and as apart of diversifying business fields, and make development on external figure and substantial value. While ensuring industry-leading competitiveness, the company also strives to become one which is The company produces goods at the world’s highest level of quality and maintains cost competitiveness on the strength of its state-of-the-art continuous polymerization & direct highly respected by its customers for its enterprising spirit and its commitment to enriching people’s lives. spinning technology, which was patented by the U.K.’s Imperial Chemical Industries (ICI), as well as its fully automated production and logistics processes. Other than Jurasil which is antibacterial and environment-friendly yarn, TK Chemical launched new BI for various functionality emphasized yarns and concentrated a high value-added products sales and Overview promotion. Company Name TK CHEMICAL CEO Hae-kyu Kim *Neofresh Series: Brand name for functional and specialty fancy Polyester Filament Yarns Establishment November 2007 Capital KRW 45.4 Bil. NEOFRESH Series(Cool touch, CD, FD, CD+FD, quick absorbing & drying and etc.), Total Assets KRW 642.8 Bil. Sales KRW 612.4 Bil. Type CDD(Color Dope Dyed Yarn) JURASIL REBEX(Flame Retardant Yarn) Ceres(Wool- Seoul Office 11F, #78, Magokjungang 8-ro, Gangseo-gu, Seoul, Korea like) FD Seires(Full Dull), HSY(High Shrinkage Yarn) HOY(Low Shrinkage Yarn) Main Businesses Manufacturing & trading, polyester, spandex, PET-CHIP, - Sport Wear, Inner Wear, Various Apparel Material construction industry Usage - Women’s suits, blouses, children garments, sleep apparel - Interior textiles (curtains, sofa covers, bed sheets) industrial fiber interior materials History 2015.03 Division and combination construction business sector of Spandex Bare Yarn WOOBANG CONSTRUCTION Co., Ltd. TK Chemical makes high-quality spandex bare yarns that feature superb elasticity for customers 2014.02 Registered for house construction business provider around the world through in-house developed technologies and cutting-edge high-speed production 2012.12 Awarded US $700 million Exporting Tower on the Trade Day facilities. 2012.04 2012 Organized as the super company part in KOSDAQ Exchange 15DE CLEAR, 20DE CLEAR/SEMIDULL, 30DE CLEAR/SEMIDULL, 2011.07 Headquarter Transfer (Seoul → Daegu) Type 40De CLEAR, SEMIDULL, 55De CLEAR, 70De CLEAR 2011.04 Opening of the company (Listed for KOSDAQ Exchange) 2010.06 Grand prize in Textile/Fashion Field in the 17th Samwoodang Usage - Pantyhose, swimsuits, outdoor wear, tights, lingerie, jeans 2008.05 Affiliated to the family companies of SM Group 2008.02 Transferred the business from Dongkuk Trade Co., Ltd. PET-Resin (Polyester, spandex and PET-resin) Boasting the nation’s second largest production capacity, TK Chemical produces PET- 2007.11 Establishment of TK Chemical Co., Ltd. resin chips for bottles through its continuous polymerization process for customers in 70 countries around the world. Made from non-toxic materials that are totally inert and not PRODUCTION harmful to the human body, the product has won quality certification recognition from Coca-Cola Co. and the USFDA for use in food and beverage containers. INFRASTRUCTURE Product Plant Size Facility Capacity - Production : 11,000 tons/month Type - Beverage containers (bottled water, medicines, cosmetics, juice) - Small quantity batch production (differentiated) Polyester 106,782m2 Quality - Continuous polymerization & direct spinning process certifications - Fully automated production system Product Plant Size Facility Capacity - Production : 2,500 tons/month Spandex 60,800m2 - Continuous polymerization & direct spinning process CONSTRUCTION BUSINESS SECTOR Construction Ordered by Construction Period Product Plant Size Facility Capacity Woobang IUSell in