The Export-Import Bank of Korea (www.koreaexim.go.kr, Chairman Yong Hwan Kim, “ Korea Eximbank”) announced on June 20 the names of seven Korean Hidden Champions.*
* MK Electron Co. Ltd., Simone Ltd., Hwaseung R&A Co. Ltd., Kukdo Chemical Co. Ltd., Dongyang Mechatronics Corporation, Moneual Inc., and E-Litecom Co. Ltd.
The Hidden Champion Program, initiated in 2009 to develop global exporting SMEs with global market power, finally yielded seven firms fitting the bill of Korean Hidden Champions.
Korea Eximbank held a ceremony to officially recognize these firms at Bank headquarters in Seoul.
Korean Hidden Champions refer to medium-sized enterprises ranking among the top five in terms of global market share and exports of over USD 300 million, or medium-sized enterprises with more than KRW 1 trillion in sales with exports comprising over 50% of sales.
The seven recognized Korean Hidden Champions not only produce goods or services that rank within the top five in terms of global market share, but they also boast superior technology and sustainable market power with an average of 42 patents, KRW 553 billion in sales, and KRW 434.1 billion in exports.
Korea Eximbank selected a total 230 candidates for its Hidden Champion Program and committed KRW 6.5 trillion in financial support.
Average sales growth of candidate firms was 14.9%, or 7.0% higher than the KOSPI average (11.7%).
In addition, the companies had average operating profits* of 6.6%, higher than the KOSDAQ average of 5.9%.
* Based on IFRS financial statements.
The seven Korean Hidden Champions were provided with KRW 440.7 billion in financing and yields an average of KRW 68 billion in sales and KRW 5.8 billion in net income.
Chairman Yong Hwan Kim of Korea Eximbank commented, “Korea will need many more Hidden Champions with global market power similar to those of Germany to reach our goal of USD 2 trillion in trade. The new Hidden Champions will serve as exemplary models of growth for Korean SMEs.”
During the first half of this year, the Bank had already provided KRW 2.6 trillion (72%) of its KRW 3.5 trillion target for this year through the Hidden Champion Program.
The Bank plans to provide an additional KRW 500 billion in support if needed to total KRW 4 trillion for exporting SMEs this year.
