2010 New Year’s Message
Realization of growth engine and creative value for the next generation
   – Start of the next 100 years in the future, 2010 NEW Cheil Industries

My fellow staffs of Cheil Industries, The new year of 2010 has just dawned. 

The morning of the New Year, which is full of new hope and vision, is a gift that allows us to step ahead. I wish all the best for you and your family in this year, which is cherishing with great hopes.
 
Last year, we could not even have the slightest idea of what will happen next as we were in the chaotic situation of economic crisis, however, we overcame the crisis and established frameworks for developments in every business area. All staffs’ will and passion, which made us to resolve difficulties, has become a new potential growth power. 
 
There are lots of hopeful messages that the global economy will be on the normal track this year. Many people predict optimistic forecasts saying that exports will boost as economic growth will be restored and investments of enterprises will be increased. 
 
If we say that we went through a dark and bumpy road with much effort, now we will be on the broad highway and will speed up to reach our ultimate destination.
 
Therefore, every global enterprise will be in more intense competition to pre-occupy the market. To survive and grow in this competitive structure, we need to be in the lead with unique methods.
 
My fellow staffs,
2010 is the start of the New Year and also a start point of Cheil Industries for the next 100 years. Moreover, it is our 56th anniversary as well. Until now, Cheil Industries has continued to grow with new changes for every ten years.
 
Now, as we start the new ten years, we have to conquer the second industry transformation, which is entirely different. By establishing a creative business structure with sensitivities as basis, so we could have a growth power for the next generation.
 
To achieve this, I would like to emphasize the new 2010 business policy of ”Realization of growth engine and creative value for the next generation.” 
 
To build a foundation for growth in the next generation, we need to broaden our business portfolios that we have worked until now, as well as materializing the new area of next generation growth engine, which will lead the new economy. During these processes, the new creative value that will lead the global market trend, should be fully reflected in all of business processes and organization culture.
For 2010, I will undertake following three tasks.

Firstly, we will strengthen competitiveness of existing business and will prepare for uncertainties.
For those businesses and brands that do not have structures for revenue, we should build sustainable foundations by stabilizations.

We have to quickly normalize new businesses including engineered stone, semiconductor process materials and three lines for polarized films and need to work harder to device processes for R&D efficiency improvement again. In addition, we need to focus so that new brands in the fashion area could settle down early.
 
Especially, please look through risks that can be involved in the export-centered business structure in advance. We should be fully prepared for three areas – exchange rate, oil prices and interest rates – that might be increased highly and also need to be reorganized to have a business structure that can make profits even when the exchange rate is around 900 KRW.

The new growth engine does not start from a new place, but should start from stabilized competitiveness of existing businesses and our early responses to overcome uncertainties. 
 
Secondly, we need to develop our global ability to a new level.
Now, we need to upgrade every employee’s mind and business procedures to the global standard, not only for our business area.

For the chemical area, we need to effectively respond to the fierce market competition by building up network for global production and SCM operations. The area of electronic materials should develop differentiated responses for overseas strategic customers and make solid portfolio by focusing on attracting more new customers other than Samsung Electronics. The fashion area should have a year of expanding Chinese market network. In addition, we need to search for a new growth engine by reflecting advanced trends in the global market in real time. 
 
The ability for global market can have synergic effects throughout the whole company when it is used in all areas including R&D, production, marketing, design and human resource development. Not just from one area, but resources from all of Cheil Industries should aim for the global development.
 
By all means, 2010 should be the start year that can exceptionally broaden the global boundary of Cheil Industries. 
 
Lastly, we should develop growth for the next generation with new promising businesses.
Permanent development of an enterprise depends on the kind of new growth engine they will build in the next generation. Following previous achievements and business transformations, Cheil Industries should be developed to a strong global player that can be continued for the next 100 years. 
 
Firstly, we need to expend areas with high values including automotive resins and LED materials, which will add more value to our existing businesses, and for the fashion area, we need to challenge to the new area by launching outdoor brands and more.
 
Most of all, for the new promising projects including energy and environmental friendly area, which is the ones that leading enterprises are promoting now, Cheil Industries’ advanced materials should have the key roles.
 
We need to visualize new businesses like paste and membranes for solar batteries, which is the area we are working on now, so that we could design the future of Cheil Industries with our own hands.
 
These tasks until now, should be performed with the foundation of creative values.
 
We cannot be leaders in this transforming age with our existing methods. As we pursue sensitivities and new things with free communications, and promote debates and new way of thinking, we will generate ideas and voluntary motivations.

My fellow staffs,
Do not think the vision of Cheil Industries, which is “The creator of advanced materials and sensitivities,” as something that we should achieve in the future, but let us develop it one by one from now on.
 
We have enough abilities, and have changed a lot. Most of all, you, who are filled with passions, are dreaming a new change in Cheil Industries.
 
Now, our goal is clear. By developing creative values, we will make a growth engine for the new generation and Cheil Industries will be frontiers, who will lead paradigms of new ten years.
 
2010 should be the first year that Cheil Industries should prepare for the next 100 years in the center of transformation. We should not fear new changes and take a powerful step together as we face the clear goal with creative visions.
 
On the new day of 2001, I wish all the best and hope all the wishes of every employee could come true. Thank you.

January 4, 2010
Hwang Baek
CEO of Cheil Industries

The Chemical Division of Cheil Industries launched the European market by value-added eco-friendly material
Attended ‘Germany Fakuma 2009’ plastic exhibition, which is center of Global Chemical Company

■ The largest business consulting with about 1400 companies participated from 40 countries and 50,000 visitors
■ Displayed eco-friendly materials for automotive, LCD TV, and mobile classing
■ Global chemical companies such as BASF, Bayer, and DuPont  attended and showed their technology
■ Aim for US$300 million of sales in Europe in 2013 by value-added eco-friendly material according to the regulations




The Chemicals Division of Cheil Industries is launching the European market by value-added eco-friendly materials. Chemil Industries have added International Plastic Exhibition, ‘Fakuma 2009’, in Friedrichshafen, Germany from 13th to 17th and presented high-functional advanced materials.

‘Fakuma 2009’ is the Europe’s largest plastic industry exhibition, which just had the 20th this year, and with 1400 companies from 40 countries they had business consulting at the site. Global chemical companies, such as BASF, DuPont, and Bayer, have attended this exhibition so it was a battleground which aimed a future trend of advanced material technology.

It was the first exhibition that Cheil Industry has attended after establishing a corporation in Germany since 2006, and Cheil have displayed future eco-friendly material and engineering plastic product such as LCD TV, high-functional resin used as exterior on a mobile phone and exterior products for automotives.



The European customers at the exhibition were very interested on scratching-resistance resin, PET bottle and natural ingredients, which were used on the exterior of Samsung Electronics TV, which is the number one in world’s TV market. Especially, there were many customers seeking for an advice on exterior material for automotive, which is spotlighted to reduce the weight of a car.

In 2007, Cheil Industries have acquired the ‘GM global material approval’, which proves the quality of Engineering Plastic (EP) resin that are used on the exterior of GM car by General Motors in United States, and provide materials to world’s leading automotive companies, such as GM, and Renault Samsung. Cheil Industries can apply exterior material on all GM affiliated brands, including domestic, United States, Europe, China and Australia, without a separate procedure.



The scratching-resistance resin that Cheil Industries have developed in 2005 is the world’s first high functional resin, which provides a luxurious gloss without a separate procedure and do not leave any scratch so it has been used on the exterior of various advanced home appliances such as digital TV.

In addition, Cheil Industries have recreated a polyester plastic aiming the European market, where strict environmental regulation is set, by using natural materials such as PCM (Post Consumer Materials) and corn starch to reduce carbon dioxide, and concentrated to obtain specialized skills compare to its competitors on eco-friendly products, such as bio complex materials, which is used on the cladding material of mobile phone.



Cheil Industries have opened a office in Frankfurt, Germany and entered the European market in 1991, and started an artificial marble business toward Europe and the Middle East since 2001 and established Samsung Chemical Europe GmbH in Frankfurt, Germany in 2006 and equipped systematic organization and business channel for European market.
The current synthetic resin market size in Europe is about US$75 billion annually primarily in Germany, Italy and France and the artificial marble is about US$400 million and is expected to expand the market by eco-friendly materials and automotive exterior materials.

Yong-Tae Jeong, the General Director of Cheil German Corporation said, “This exhibition was a great opportunity increase the awareness of the engineering plastic used on the exterior of the automotive of global manufactures and the high functional material, which is used as core material on electronics and IT equipment.” Also added, “We’re aiming to achieve US$300 million sales in European market in 2013 by developing value-added eco-friendly materials suitable to the uniqueness of European environmental regulation.”

The revenue of the first half of this year for Chemical Division of Cheil Industries was 840.6 billion KRW and the exports accounted more than 80% of this and the Europe is emerging as a key exporting area, as approximately 11% of the exports, after the Asian market, such as China.

The 55th anniversary speech for commemoration



Dear employees and the representatives of our good partners,
The Cheil Industries Inc. is celebrating the 55th anniversary of the establishment.

First of all, I would like to present my sincere appreciation to the customers and partners whom have built the Cheil Industries together. In addition, I appreciate all of the efforts from the employees who have stood firmly in the growth of foundation during the ongoing crisis of uncertainty global management.

Now I think about it, the 55 years of Cheil Industries have worked on the same paradigm with the domestic industry. We have developed a textile business on the wasteland after the Korean War and have prepared a turning point on the Korea’s economy, and leaded the 80’s fashion business to a real brand age.

And the electronic materials business, which was propelled since the 21st centuries, has become the core materials of display and semiconductor and has contributed to become a digital powerful nation.

Ladies and Gentlemen:

The last 55 years of tradition and potential, which was the primary source of the Global Samsung, should be possessed as an endless self-esteem and should be coming out in the conversion of new paradigm.

After the unstable global financial markets, the business environment is changing rapidly than before. As markets for environment-friendly and energy related are expanding, the experts are expecting a significant change on petrochemical and subject matter industry. To lead the trend of the fashion business market and to get the sensitivity of the customers, the global competitions of the brand is being severe.

Not only for the business concepts but also in competitions and business procedures, it’s a situation of rising wave of the industrial restructuring period, which foretells the fundamental changes. As of now, there are uncertainties and many opportunities together. All employees must share certain goals and open new ways to create the opportunities in reality. 

For this, I would like to suggest a future vision, called a Creator for hi-tech industry material and emotional. The 55th Anniversary of Cheil Industries should remove the fixed way of success and should be the starting point as the first step of the ways that others did not go.

Ladies and Gentlemen:

It reminds me a bamboo when I think about the value which Cheil Industries should pursue. The bamboo knots overcome the storm and rain and lasts consistent growth.

As Cheil Industries has leaded the industrial development by connecting the flow of the era, it should also be a leader of the paradigm shift in the future. As we are passing the 55th anniversary, we should move forward to pursue sustainable growth with willingness to be the cornerstone of ‘100 years old business’.

First of all, we must grow as a ‘Hi-tech industry materials company’

The 100 years old Bamboo does not get thicker by living longer but always orient new growth through knots.

Now is the time to grow Cheil Industries as a hi-tech industry materials company with knots. In the future, a company, which preoccupies the new material, will lead the entire industry. Especially, with our unique technology, we should create something with new materials, which does not exist.

If the passion of the researchers, who do not fear failure and keep working for their dreams to develop a new product with new materials at the laboratory, and the efficient R&D resources harmonize, then a goal of specialized company with high-tech materials will be realized.

Second, we have to aim a “flexible emotion and creative corporate culture”.

Besides the fixed idea of ours in our mind, everything in the world is changing. Now, a design based on technological competitiveness is approaching the sensitivity of the customers and is influencing the success of the market. The emotional design skills and the imagination of material technology development, which is the key of the latest business, should overcome the usual way and challenge a creative way.

Especially, we should resolve the problems through free discussions and easy communication channels. Let’s all make a ‘youthful company, the Cheil Industries’, as a leader of the trends with new ideas.

Finally, we should be a ‘Respectful company with mutual value’
 
The existence value of Cheil Industries should be benefiting the customers and the communities. We must obtain trust from the customer and the partners through a complete products and services and should develop a mutual partnership for development. In addition, should prepare a clear management system and be a respectful company with social responsibility by social contribution activities, which meet the expectation of the community, and open communication.

In addition, should establish a sustainable growth platform by settling down the green business structure to manage the global warming and other environmental issues,

Especially, should conduct an action-oriented environmental management, such as reducing greenhouse gas emissions and enhance a business opportunity by using a recycling process.

Ladies and Gentlemen:

What kind of picture do we have in our mind now?

Even though the vision of Cheil Industries, a “Creator of hi-tech industry material and sensitivity”, is only by imagination but should have a confident that we can achieve this in the reality if we keep dreaming, dreaming, and putting all efforts into it.

Now, let’s picture the dream of Cheil Industries in our mind, ‘a youthful organization after 100 years’. Let’s open our mind and become like it. This dream that we have on our mind as of 55th anniversary will be the great future of Cheil Industries.

Sincerely, 

September 2009
Cheil Industries Inc.
CEO Baek Hwang

New York Shoes Brand : STEVE MADDEN
Grand Opening a Mega Shop at Noon Square in Myeong-Dong.
Temptation from 12.5cm Fatal Kill Heel



■ On June 28th, a New York shoes brand 'Steve Madden' launched by Cheil Industries opened a Mega Shop at Noon Square in MyeongDong. Mega Shop is a large store to maximize and show the overall brand image.

■ Steve Madden, a global shoe brand first launched in New York in 1990, holds approximately 500 stores in 25 countries worldwide and was first introduced to Korea in February 2009.

Steve Madden is famous for its trendy design and reasonable price; therefore, New York women show absolute support.

■ Especially, different types of Kill Heel, high-heeled shoe which is a hot trendy item for this summer, are shown and gaining popularity among young women based on sexy & fancy design and splendid colors.

□ Gallaxy <Share the Cool> campaign aids sales & auction proceeds, and water for life.
□ Self-portrait of Pierce Brosnan and famous artists' collection appear at Charity Auction.



■ Gallaxy, a Menswear Brand of Cheil Industries, opened an event that exhibits not only a self-portrait of Pierce Brosnan but also arts of famous artists and photoworks of celebrities as part of <Share the Cool> campaign driven with GoodNeighbors.

■ Self-portrait of Pierce Brosnan and works of popular artists and celebrities are sold to people by written auction at the exhibition held in Jamsil Lotte Department. Proceeds from the auction will be fully donated to "Water for Life" project installing water tanks in Kenya Meguana region which can provide fresh and clean water for more than 1,500 people.



■ Especially, self-portrait(50*50,oil painting,1990) of a famous Hollywood star Pierce Brosnan drew attention. Pierce Brosnan steadily performing expert level of art works in addition to acting has special bond with Korea being the Gallaxy main model, and happily donated his portrait when he heard about the campaign. Except those being sold by a charity he takes part in, his works are all privately owned; therefore, it will be an extraordinary opportunity for us to meet his art works.

In addition, famous artists, such as Soon Myung Hong, Seoung Jun Hwang, Youn Hee Seo, being commonly assessed to reinterpret human and nature with modern sense, and Min Gee Cho and Byeong Jin Lee who are active as not only a celebrity but also a photographer donated their valuable works and took part  in the good deed. 

MANGO OPENS A NEW STORE IN SEOUL

The Spanish fashion brand 'MANGO' announces a new expansion plan for 2009 with the opening of a new image store in Seoul and plans to open two new stores during the year.



Barcelona, 28 April 2009 – MANGO, Spain’s most international fashion brand, is opening a new image store in the city of Seoul after signing an agreement with the South Korean group SAMSUNG for the joint development of the MANGO chain in South Korea. The Spanish fashion brand is thus reaffirming its commitment towards the South Korean market, considered one of the most important in Asia because of its great potential and the numerous investment opportunities it offers.

This cooperation project is getting underway with the opening of the new image store in Myundong, Seoul’s most exclusive shopping district. The store has a total surface area of 576 m² distributed over three levels. The ground floor and the first floor make up the sales area, with fitting rooms on both levels. The third floor is to be used as a stockroom and has a surface area of 146 m². The store has a glass façade, and overlooks a light well which contains a Japanese garden, which adds elegance and light to the premises. In general, the store décor features fine materials such as oak, which combines with the black and white lacquer and transparent glass of the walls and display furniture. The flooring is oak and black basalt stone, which gives the store a warm atmosphere.



MANGO has declared its intention to open at least two more stores during the initial expansion phase in 2009, all of them in Seoul, while continuing with an ambitious plan to open stores in other major cities of South Korea.

“For SAMSUNG CHEIL Industries it is a pleasure to cooperate with MANGO in the South Korean market”, says Iam Kim, the Marketing Vice-president of said company. “We are convinced it will be a fruitful alliance”.

During 2008, MANGO opened 130 stores throughout the world, 26 in Spain and 104 in foreign markets. What is more, it consolidated its position in various countries in Eastern Europe, the Middle East and Asia, and the chain entered new markets, such as Algeria and Georgia.

MANGO currently has a total of 1,235 stores in 91 countries. In 2009, it entered Belarus, Guatemala, Iraq, Iran, Martinique and New Caledonia for the first time. Throughout 2009, the chain plans to increase its number of stores by 150. The locations for the new stores include Belgrade, Dubai, Kuwait, Johannesburg, Manila, Moscow, New Delhi, New York, Paris, Beijing, Tehran and Tokyo.

Cheil Industries Inc., Won the President’s Award at RFID Industrialization Award



Cheil Industries Inc., won the president’s award at RFID Industrialization Award.

The Korea Chamber of Commerce ＆Industry (Chairman Kyung-shik Sohn) had a ceremony of awarding for ‘RFID Industrialization Award’ at Millennium Seoul Hilton Hotel on the 23rd. Cheil Industries Inc. that received the president’s award emphasized that “it was very effective in managing stocks by shortening delivery time from 15 hours to 3 hours a day through introducing RFID technology by stages from 2006.” In addition, a shop that introduced electronic tags presented the sales increase of 200 million won and reduction of 150 million won cost.

RFID(Radio Frequency IDentification) technology refers to a technique that can store information in an electronic chip and identify the information in a non-contact mode using radio frequency.

It was presented that the future shop of Cheil Industries Inc. applying electronic tags contributed to enhancement of customer satisfaction. Customers can see where the clothes in the shop were produced, sizes and colors of the design, an outer garment and accessories which match the clothes well, etc. with a tag containing a lot of information.

About 100 guests attended the awarding ceremony including CEOs of distribution, logistics, manufacturing and RFID companies such as Paeng Jeong-guk, president of Hyundai Motor Company, Hwang Baek, president of Cheil Industries Inc., Choi Jong-won, CEO of LG Hidachi, etc.



Hwang Baek, president of Cheil Industries Inc. is receiving the president’s award at ‘RFID/USN Industrialization Award’ at Millennium Seoul Hilton Hotel on the 23rd.

Cheil Industries Inc. Completed High-Class Construction Material「Engineered Stone」 Factory
High Value-added Product with Twice Price of the Existing Acrylic Artificial Marble

■ A ceremony to celebrate the completion of the factory was held at Yeosu Business Site on the 9th(Thursday) in the presence of CEO Hwang Baek
■ Expected to prepare a foundation to preoccupy the high value-added environmentally-friendly construction material market using high-purity natural silica
■ Annual productivity of 650,000㎡ or 160,000 sheets equivalent to 100 soccer fields
■ Expanding market share by establishing bulk supplying system following to acrylic products and natural stone



Cheil Industries Inc. began the next-generation environmentally-friendly Engineered Stone business using natural stone as an ingredient in earnest. It had a ceremony to celebrate the completion of Engineered Stone factory at Yeosu Business Site on the 9th in the presence of about 300 concerned persons including CEO Hwang Baek, presidents of associated companies and staffs.



Engineered Stone, an environmentally-friendly construction material using high-purity natural silica, is resistant to scratch and heat and has low water absorption rate while possessing natural texture. So the demand of the product is increasing as high-quality construction finishing materials including the upper panel for a sink in a kitchen or a counter and interior design. Particularly, the high value-added product with over twice price of the existing acrylic artificial marble is being sold in American, European and Asian markets more and more.



The construction of the Engineered Stone factory started August last year with a total of 27 billion won in 17,000㎡ of total floor area. Its production capacity is 650,000㎡ or 160,000 sheets, which is over 100 soccer fields (average width 1.4m × length 3m).

With the completion of the Engineered Stone factory, Cheil Industries Inc. prepared a foundation to expand its construction material market by having products with various prices and characteristics following to acrylic products and natural stone. 

Cheil Industries Inc. has decided ‘Radianz’ as a brand name for Engineered Stone products and began expanding global sales networks and marketing activity in earnest. Cheil Industries Inc. that has done the artificial marble business from 1993 ranks second to DUPONT in the market share of the world market with its original technology such as development of the world’s first artificial marble with high-transparent chips in it. Particularly, it has explored professional distribution networks of the global market including entering a sales contract with HOME DEPOT, the world’s largest distribution company having about 2,000 shops in the U.S.



“We made difference from the existing products by diversifying sizes and developing unique colors in order to respond to the expanding high-class construction finishing material market. We will preoccupy the high-value added market by establishing bulk supplying system from acrylic artificial marbles to natural stone and engineered stone” said Yoon Seong-ho, manager of Industrial Material Business Department of Chemical Division in Cheil Industries Inc.

Home Page : http://www.staron.com

The `09/10 Fall/Winter Fashion Week runs through April 2 at the Seoul Trade Exhibition & Convention in Daechi-dong, southern Seoul.
More than 39 acclaimed designers will show their collections.
Around 70 fashion companies will participate in the Seoul Fashion Fair.

------------------------------------------------------------------------------------------
Fashion week kicks off with men's wear collections by Mvio's Han Sung-hyuk, March 26.
Han Sung-hyuk, creative director for Cheil Industries' Mvio brand, presented a collection inspired by the fictional British detective Sherlock Holmes.



Camel-colored jackets and coats were accented with herringbone and argyle prints, while pants were cropped at the ankle.

KUHO '09 S/S COLLECTION

JANUARY 6th 2009
3:00 / 7:00 PM
HYATT GRAND BALLROOM & REGENCY








▷ homepage : http://www.kuho.co.kr