From bullets to coins, it’s more bang for the buck
Since its founding in 1968, Poongsan has become the largest provider of coin blanks in the world, and provides most of the ammunition to the Korean military. Poongsan products are pervasive; coins originating from Poongsan have passed through the hands of citizens all over the world, and most Korean males have no doubt used bullets manufactured by Poongsan during their military service.
Copper applications have been Poongsan’s main expertise, with the company mass-producing copper and copper alloy sheets and strips, tubes, rods and wires for use across many industries.
Poongsan also participates in the nation’s booming semiconductor business by creating semiconductor leadframes.
Moreover, Poongsan is the largest supplier of coin blanks in the world. Coin blanks, or flat metal disks ready for stamping as a coin, needs to be made to the specific measurement and weight of each nation’s standards. But Poongsan has long experience in this area. It was made Korea’s sole coin black manufacturer in 1970 and first exported coin blanks to Taiwan in 1973. Now with a 60 percent market share of the global coin blank sector, it has supplied coin blanks to more than 60 countries.
Poongsan also makes ammunition of all shapes and sizes, from small bullets to Howitzer-sized projectiles. Along with supplying the Korean military, the firm produces commercial ammo for sporting uses. Poongsan currently operates two defense plants, one in Angang, Gyeongju set up in 1973 and another in Dongrae, Busan, acquired from the Korean army in 1982.
The group established units in the U.S. and Thailand for overseas production. PMX Industries Inc. in Cedar Rapids, Iowa has an annual capacity of 120,000 tons of copper and various alloys, while Siam Poongsan Metal Co. in Thailand is the only fabricated copper plant in Southeast Asia.
Following the establishment of Poongsan Holdings Corporation in 2008, the group is focusing on new metal alloys, coin blanks made from bi-metal and other new materials, investing in copper-related research and development, and creating high-tech precision ammunition. Poongsan reported record operating profits of 108.7 billion won ($90.66 million) in 2009.
Besides its subsidiaries in the U.S. and Thailand, it also has operations in China, Japan and Malaysia.
Poongsan’s family owners have a distinguished heritage. Poongsan founder and former chairman Ryu Chan-u was the twelfth direct descendant of noted Joseon Dynasty premier and scholar Ryu Seong-ryong, best remembered for selecting the famed military commander General Yi Sun-sin to lead Korean naval forces against the Japanese during the turbulent Imjin War (1592-1598).
The Ryu clan is from Andong, North Gyeongsang, a well-known center of Confucian scholarship. Poongsan takes its name from an area of Andong, reflecting the family’s close connections to their home region. The group works to preserve Andong’s cultural assets and supports the Poongsan Middle and High schools.
The founder’s son, Ryu Jin, became chairman of the Poongsan Group in 2000.
Ryu has announced a goal of achieving 12 trillion won in revenue and 1 trillion won in profits by 2018, the 50th anniversary of the group.
Group vice chairman Ryu Mok-ki is not related to the family owners, instead having come to Poongsan after serving as the head of Hansol Savings Bank (now HK Mutual Savings Bank) after graduating from the College of Education at Seoul National University.
Choi Sang-young is an executive vice president of Poongsan Group and serves as the chief officer of the fabricated nonferrous metal business. He has graduated from Korea University after majoring in political science and international relations.
Park Woo-dong is the group’s executive vice president in charge of the defense products division. He assumed his current role in December 2008, having received a bachelor’s degree in chemical engineering from Yeungnam University and then rising through the management ranks of Poongsan’s ammunition operations. Ryu Si-kyoung is the executive vice president in charge of management.
“Poongsan should benefit from a rise in global prices for refined copper and increased sales in the defense product division,” said Moon Jeong-up, an analyst at Daishin Securities, who also believes that a weak won will boost exports.
By Lee Jung-yoon [joyce@joongang.co.kr]
with the Korea JoongAng Daily
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