The Export-Import Bank of Korea (www.koreaexim.go.kr, Chairman Kim Yong-hwan, “Korea Eximbank”) held a ceremony to officially recognize eight new firms* fitting the bill of Korean Hidden Champion at Korea Eximbank’s Yeouido headquarters on August 29.

* Tovis, Dongjin Semichem, Lumens, Soul Brain, Korea Flange, S-Mac, Sungwoo Hitech, and Hansae Fashion

Korean Hidden Champions are globally competitive upper medium-sized companies that export more than USD 300 million annually and whose global market shares rank within the top five in their respective sectors; or whose sales revenues exceed KRW 1trillion, of which more than 50% consists of exports.

Korea Eximbank’s Hidden Champion Initiative was first launched in 2009 to incubate and certify such upper medium-sized companies with global market dominance.

This year’s eight new Hidden Champions represent the second wave of companies to earn the title after the first seven Hidden Champions were crowned last year.

The eight newly anointed Hidden Champions either boast products that rank within the top five in their respective global markets or annual sales of over KRW 1 trillion, and enjoy sustainable technological and market leadership as evidenced by their average number of patents (129), average net sales (KRW 641.7 billion), and average exports (KRW 491.5 billion).

Last year, they posted an average sales growth rate of 5.9%, higher than both the KOSPI average (4.6%) and the KOSDAQ average (5.2%).

Their average operating income margin (5.7%) also surpassed the KOSPI and KOSDAQ averages (respectively 5.1% and 5.6%).

The eight firms had between them received KRW 920 billion in financing from Korea Eximbank under the Hidden Champion Initiative, resulting in average growths in their net sales and operating income of KRW 210 billion and KRW 8.7 billion, respectively.

Chairman Kim of Korea Eximbank remarked, “For Korea’s trade volume to exceed USD 2 trillion, we need more hidden champions with global dominance, as can be seen in the case of Germany. The new eight Korean Hidden Champions will set a model for the growth of SMEs.”

In the first half of this year, Korea Eximbank had already provided KRW 4.6 trillion out of KRW 5.8 trillion in credit earmarked for the Hidden Champion Initiative in 2013.

The bank is also providing non-financial services to promote SME growth, and is planning to launch a job portal website for Hidden Champions in September to assist in their recruitment of talent.