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TRANSCRIPT
DOOSANDOOSAN2003 Change & Build
Doosan Tower, 18-12, Euljiro 6-ga,Jung-gu, Seoul, KoreaPhone: 82-2-3398-1081~5http://www.doosan.com
DOOSAN
2003 Annual Report
DOOSAN is fast becoming one of the major corporations of the 21st century based on its steady and
commanding growth.
We refuse to settle for less, and are constantly questioning, challenging and creating.
Hope brings change. And change becomes the power to move the world.
DOOSAN's ‘Change & Build’is our future.
C O N T E N T SProfile
Chairman’s Message
2003 DOOSAN Management Strategy - Change & Build
DOOSAN Affiliates & Business Category
Technology Businesses
Consumer Businesses
Service Businesses, Investment Companies, Auxiliary Organizations
Community Relations
Network of Branches in Korea
Overseas Network of Branches
History
Financial Summary
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04
06
08
10
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Third, we will endeavor to train skilled human resources through diverse personal foster program. Doosan will promote CEOs with a keen
business edge and active mental prowess, instead of relying upon the manager-type CEOs of yesteryear. To realize these ends, we will
reorganize our business structure by implementing a new CEO leadership program that improves the responsible management system
based on big compensation payouts. Doosan needs more manpower in the areas of marketing, sales and product planning, and so to develop
our staff capabilities we will initiate personnel development program. These policies are new educational systems that aim to cultivate a
selected number of knowledgeable, technical-minded and passionate people, while giving them a chance to build their experience and
receive top compensation. The capabilities and passion of our core employees are the driving force behind any creation of a new vision, and a
vital element that will direct the future of each and every company in a global era of unlimited competition. By fully recognizing the importance
of qualified manpower, Doosan will drastically increase the level of personnel compensation and match the level of the eight domestic
conglomerates by improving its basis for manpower development, different pay rates based on evaluation and the development of an
evaluation system.
Fourth,we will strengthen individual capabilities based on a passionate and positive mindset. The roles and attitude of each employee must
first be modified in order for us to achieve these corporate goals, and the number-one priority is to recognize the main elements of success
for the mid-term growth of our company. If individual capabilities are developed in tune with a shared understanding of corporate aims, our
company's mid-term capabilities will be naturally developed. Every one of us must make continued efforts for self-development and the
creation of results, and play a leading role in promoting a positive new culture for Doosan. As well, each CEO must not be satisfied with short-
term results but should focus on developing mid to long-term business opportunities and improving core capabilities. We will concentrate on
training manpower while motivating our employees.
Above all, the objectives of 'Change & Build' can be defined as the Doosan family passion, as we lead the implementation of changes and
build our century-old firm into one of the major companies in the world. This mantra encompasses a sense of accomplishment and the joy of
achievement, while cementing the public assurance that we can evolve to meet the modern era.
Global economic stagnation is expected following the US-Iraq War, and it is not an exaggeration to say that domestic economic conditions are
highly unpredictable due to oil price hikes and declining consumption rates. Although there are many obstacles ahead of us, our goals and
directions are clear. With the promotion of 'New Start' and the establishment of 'Change & Build', we will maximize our company value by
realizing continued and stable growth even within fast-changing business environments. Only our firm conviction, confidence, total
participation and decisive action can ensure Doosan's future. We will come together as one and press toward new possibilities for a brighter
tomorrow. Customers and shareholders, thank you for your continued interest and support. This year, we pledge to try even harder to develop
into a better company and win your trust. Please see how we advance forward.
Thank you.
Park Yong-oh, Chairman of Doosan
First of all, I'd like to extend my warmest thanks for your continuing support and encouragement.
This year marks the second anniversary of our bold mid/long-term growth strategy 'New Start', and our quest to introduce a new stage of
development for Doosan while realizing the twin goals of shareholder and customer satisfaction is still in full swing. We are committed to
making this year a continuing journey toward building competitiveness and charting a new path of growth for our firm.
We will lay the ground for new advancement and reestablish a business model with which to ensure long-term growth and profitability. To
achieve these missions, we have designated 'Change & Build' as our key word for this year. If the 'New Start' strategy was to set a transition
goal, 'Change & Build' will serve as a compass of transitions.
In the past seven years, Doosan's financial structure has improved to the level of an advanced company due to drastic internal shifts and a
renewed focus on managerial improvement activities. We have also moved to incorporate Doosan Heavy Industries as our new growth
engine. However, I'm certain that, despite these successes, we can accomplish our ultimate goals only after implementing the 'New Start'
strategies and consolidating those noble aims with a solid belief in 'Change & Build'. To be reborn as a new corporate entity, each member of
the Doosan family must renew our resolve to accomplish the four objectives below.
First,we will increase our core competitiveness and chart a new growth path by making fundamental changes.
We cannot ensure future growth if we blindly follow the old managerial practices. Doosan's tomorrow shall not be guaranteed unless we act
to secure a higher level of competitiveness and core capabilities. We must challenge existing people, organizations and systems based on the
concept of 'Change & Build', and fuel the growth engine by developing core capabilities according to the characteristics of each company. In
terms of the Doosan corporate structure, there are many businesses that have already passed their limit of growth. We must build a strong
foundation of growth on the basis of core capabilities by defining new business models.
Second,we will invest our resources in core capabilities for a dynamic platform of mid to long-term growth. Doosan's old strategies lacked
ultimate performance because they were only temporary measures and could not provide real solutions to fundamental problems. Because
of these intrinsic shortcomings, our managerial environment never really improved even when strategic goals were actually accomplished.
We must therefore bypass all these past trials and errors and set a new course for expansion, while strengthening our growth infrastructure
through improvements in core capabilities and cost restructuring.
22000033 CChhaannggee && BBuuiilldd
0504
Chairman's Message
2003 DOOSAN Management StrategyNew Innovation Change & Build
Enterpreneurship
STIMULATE PROGRESS, Change & Build
Basic strategyNew Start strategy(mid/long-term growth strategy)
(Units : a hundred million of Korean won)
Action strategyGrowth Of People
Action planPersonal Foster Program
●ConceptCapability-oriented and performance driven leader training
●Developing program·Establishment of leader training system
and Development of training program·Organic integration of Management
strategy-HRM-HDM·Self-directed learning system building
●ConceptHigh performance leader security &rearing acceleration program for growthof business
●Developing program·Pipeline building for core personnel security·Value Driver capability examination & Gap
closing ·Total HR on-going process operation for
personnel security & rearing·Core personnel security process system
design·HR integration IT system building·HR Infra building for continuing development
of capability
●Developing program·Development of a business model for
continued growth ·Ensure competitiveness and market
leader position in main business areas·Development of new businesses to
overcome growth limitations ·Shift portfolio to focus on high-value
added products ·Maximize operational efficiency and
enhance business portfolios
Action planPersonnel Security Acceleration Program
Action planGrowth Platform build
Action strategyGrowth Of Business
2003 Key Word
Change & Build
Vision Become one of the top-class groups in EBIT by 2007
Strategy Growth Strategy index
Sales EBIT FCF
'Change & Build' is a detailed action plan that follows closely on the heels of the 'New Start' strategy, Doosan'smid/long-term growth plan implemented at the beginning of last year. The basic concept for this year's improvementscheme is to realize the 'growth of business' through the 'growth of people'. Doosan's business keyword 'Change &Build' takes as its underlying mission the drive to change its people, organization and systems and build a newgrowth platform by developing core capabilities. The main program in place to propel the 'Growth of People' initiativeis the 'Personal Foster Program, Personnel Security Acceleration Program', while a dynamic platform for the'Growth of Business' is being constructed around meticulous action programs.
0706
Pursuit of Growth : The Drive for Growth is deep within us.
year year year
(※ Based on the 6 major companies)
Service
Businesses
Technology
BusinessesDoosan Construction &
Engineering Co., Ltd.
Civil and architecture works
HSD Engine Co., Ltd.
Marine engines, Diesel powerplant facilities
Samhwa Crown & Closure Co., Ltd.
Bottle caps manufacturing
Korea Book Promotion Co., Ltd.
Book gift certificate sales
Dentsu, Young & Rubicom Korea Inc.
Advertising agency
Doosan Corporation Semicontech Corporation
Semiconductor equipmentmanufacturing
Doosan TMS Co., Ltd.
Systems construction andDevelopment of environmentmonitoring systems
Doosan Mecatec Co., Ltd.
Machine tools, chemical processequipment, FA, Plant and Steelbridge manufacturing
Electro-Materials BGCopper-clad laminate
manufacturing
Oricom Inc.
Advertising agency
Doosan Enterprise Co., Ltd.
Doosan Resort ChuncheonCountry Club, Chuncheon
Condominium
Doosan Bears Inc.
Professional baseball team
Wilus Inc.
IT Consulting and solutionsdevelopment
Neoplux Capital Co., Ltd.
Venture capital, corporaterestructuring & Consulting
Novos Inc.
PSM/TOP and performanceinnovation consulting service
Techpack BGPackaging materials
manufacturing
Biotech BU
Information &Communication BU
Consumer
Businesses
Food BGKimchi, Burger King, Animal
feed and malt business
Liquor BGSoju, Cheongju, Korean traditional
liquor, wine and whisky manufacturing
Fashion BGPOLO, DKNY, GUESS,
MICKEY CLUB
Kimchi BU, Burger King BUAnimal feed BU, Malt BU POLO BU, GUESS/DK BU
Trading BGTrading DivisionLiquor Export, Import & Export Services, Import &Sales of Home Appliances, Chemical Import &Sales, Food Sales, Distribution and Dining FacilitiesFastfood& restaurant DivisionKFC, DOOTA VITA, Airport Business
Automobile BU
Publishing BGDictionaries, Encyclopedia CD , Diverse
printed products, Printing business
Printing BU
Magazine BU
Doosan Corporation
DOOSAN Affiliates & Business Category
Investment Businesses
Oriental Brewery
Yonkang Foundation
Doosan Credit Union
Doosan Training Center
Doosan Corn Products Korea
Nutrapark
Doosan EcoBizNet
Auxiliary Organizations
Doosan Heavy Industries &Construction Co., Ltd.
Power plant facilities, Industrialplant facilities, Casting andforging, Civil & construction
Tower BU
R&D Center
Doosan announced a new advancement plan to realize its grand vision of becoming one of the major companies of the 21st century, with the help of an EBIT of twotrillion won. While seeking to improve its overall business quality, the Group is currently building an infrastructure for growth through a business portfolio focused thethree areas of Technology Business encompassing the areas of heavy industries and construction, Consumer Business centering on Doosan Corp., and ServicesBusiness. In addition, Doosan has an action strategy for enhancing its technology and management structure to keep pace with the business environment of the 21st
century. As of 2003, Doosan Group has been streamlined down to a lithe consortium of 16 different corporations including seven BGs (Business Groups) and fourindependent BUs (Business Units).Despite an unstable business environment and the stagnant domestic economy, Doosan is striving to create new customer value through continuous managementreforms. Each of Doosan's business groups (units) is preparing a growth platform to ensure continued growth and maintain its position as a market leader.
Doosan is expanding the scope of its value-added businesses
Onward and outward as a comember of the global village
The Possibilities Are Infinite
0908
Doosan Heavy Industries & Construction Co.,Ltd.Doosan Construction & Engineering Co., Ltd.HSD Engine Co., Ltd.Doosan Mecatec co., Ltd.Doosan Corporation Electro-Materials BGTechpack BGBiotech BUInformation & Communication BU
Samhwa Crown & Closure Co., Ltd.Doosan TMS Co., Ltd.Semicontech Corporation
GLOBAL NO.1 technology to create
superior products and services
GLOBAL NO.1 technology to create
superior products and services
INN
OVA
TIO
NTechnology
Businesses
13
A New Start Towards Global Number One
Doosan Heavy Industries & Construction specializes in all aspects of large-scale power and desalination plantsequipped with international competitiveness. Since its privatization two years ago, DOOSAN has beenimplementing transition programs focused on improving its management structure in order to build aperformance-oriented culture and enhance profitability, while strengthening the competitiveness of its mainbusiness sectors. As a result, DOOSAN has already recorded significant achievements in sales and net profit,both of which increased substantially compared to 2001 (sales grew 12.3% to 2 trillion 771.6 billion won, while netprofit skyrocketed by 208% to 77.3 billion won).DOOSAN will be a lean survivor in the new era of global competition, and is undergoing constant changes to bereborn as a global player in the heavy industries market. In this respect, the year 2003 will be a new startingpoint for the Company. DOOSAN took its first step towards becoming 'Global Number One', by announcing anew vision: 'Become a specialist of industrial plants and seek ultimate value based on world-class technologiesand cost competitiveness'. To realize this bold corporate vision, DOOSAN will become the number one providerof EPC (Engineering, Procurement and Construction) solutions for power and desalination plants within the nextfive years. DOOSAN will also develop into a major international nuclear power company and take its place asone of the five largest boiler suppliers in the world. In addition, the Company fully intends to acquire the largestmarket share in the desalination industry with its independent design and manufacturing capabilities for alltypes of desalination plants.DOOSAN will triple its enterprise value by posting 4 trillion won in orders, 4.6 trillion won in sales, 10.7% inoperating profit ratio and an 18.1% return on invested capital (ROIC) within the next five years.Under the vibrant catchphrase "Change and Challenge Towards Number One", DOOSAN is implementing fourmajor strategies to: 1) Maximize management efficiency, 2) Strengthen marketing capabilities, 3) Secureindependent technologies and 4) Advance business portfolios. In particular, with a view to strengtheningmarketing capabilities, the pool for order-taking activities will be expanded, the sales infrastructure both athome and abroad heavily reinforced, overseas business competences constructed in each country, and a firmconcentration applied to the cultivation of professional marketing personnel. As to securing independenttechnologies, DOOSAN will continue to extend investments in future technologies and core technologies suchas RSG and I&C, while building new systems for efficient management and the protection of its existingtechnologies. While advancing its portfolios under a strategy dubbed 'Selection and Concentration', DOOSAN will bolsterstrategic ties with other major international companies to reinforce its core capabilities in power anddesalination, even as it makes inroads into domestic and international power service markets and wins newprojects from foreign countries.DOOSAN is making a fresh start in 2003, with plans to achieve 4 trillion 59.4 billion won in orders, 2 trillion 437.9billion won in sales and 100.1 billion won in net profit. All of these resounding achievements will serve as acornerstone for DOOSAN to become 'Global Number One' by 2007.
12
Doosan Heavy Industries & Construction Co.,Ltd.
1514
A civil and architectural engineering and housing construction business
“Based on its management philosophy of creating value and satisfying customers with first-class spirit”Doosan Construction & Engineering has a new blueprint to create a new construction culture for the 21stcentury. Based on our unrivalled core capabilities, we are committed to becoming a leader in our industrythat secures sound profits and high added value by achieving our ultimate aim - customer satisfactionthrough quality and service innovations.Since beginning operations in the 1960s, Doosan Construction & Engineering has accumulated in wide-rangeexperiences in the architecture, civil engineering and housing construction fields while growing into acomprehensive construction firm. Leading up to the 1980s, Doosan made a name for itself in variousconstruction projects undertaken throughout the Middle East - the main stage for Korean constructioncompanies in the 1980s. In the 1990s, the Company made unprecedented efforts to increase its internationalcompetitiveness by winning ISO 9001 and ISO 14001 certifications.Doosan Construction & Engineering is actively participating in diverse construction projects such asIntelligent Building Systems (IBS), world-class hotels, the Doosan Tower - Doosan's headquarters and a newmecca for Korea's fashion business, in addition to national highways, subways and high-speed railroadprojects.Also, with its project proposal business system, Doosan Construction & Engineering is elevating its trust inbusinesses that require designing and engineering abilities such as civil engineering, Turn-key, housingdevelopment and environmental business. To create and lead a new housing culture in the 21st century, ithas released the unprecedented Apartment 「We've」and is earning rave reviews from the customers.Doosan Construction & Engineering has a vision of a leader to create the ultimate living space to satisfy itscustomers. In the new millennium, supported by its accumulated skills and know-how, it will continue toactively participate in the diverse areas of architectural and civil engineering, housing construction, turn-keyprojects and privately-funded social overhead capital works.
Doosan Construction & Engineering Co., Ltd.
1716
World-class Engine for world-class ships
HSD Engine specializes in both the manufacture of large marine engines and the construction of internal combustion powerplants using diesel engines. The company has served as the driving force behind the Korean shipbuilding industry.HSD Engine's main areas of business include the manufacture of low/medium speed diesel engines ranging from 700hp to100,000hp and the construction, maintenance and repair of diesel power plants. Thanks to production facilities that arecapable of producing over 4 million horsepower annually, HSD Engine currently has the second largest production capacityand market share in the world. As of December 2002, the engine-maker had produced a sum total of 24 million horsepowerand built a total of 14 diesel power plants in Guam, Greece, Eritrea and other parts of the world.Based on the Six Sigma and digital management systems implemented from the very beginning of its establishment, thusensuring the manufacture of top quality engines, HSD Engine has been enhancing business competitiveness throughinnovations in three main areas: quality, productivity and cost. With a concurrent emphasis on aggressive R&D investment,HSD Engine has been concentrating its efforts on the development of an 'Intelligent Engine System', an environmentallyfriendly engine, as well as independent technologies for core areas like combustion, structure, vibration, mecatronics andmaterials. HSD Engine was selected as the 'Korean Representative Manufacturer of Global Products' in 2001. HSD Enginewill realize its vision of becoming the 'World's Best Engine Maker' by pouring its efforts into the construction of powerful andsafe marine engines and top quality diesel power plants.
Challenge to the future technology industry
DOOSAN Mecatec manufactures and sells globally recognized machine tools, steel bridges and CPE (Chemical ProcessEquipment), which holds the world's top market share in its sector. The CPE business includes initiatives to produce andsupply high-precision pressure vessels, heat exchangers, towers and reactors for fine chemical, petrochemical and nuclearplants. The quality of these products is internationally recognized, and they are all certified with the ASME STAMP (A, PP, U,U2, S) and ISO 9001. Mecatec's machine tools include CNC lathes, and CNC milling and machining centers all producedunder a system of strict quality control, continued technology development and process innovation. The CE and EMC certificates obtained by the companyverify the quality of these machineries in both domesticand overseas markets, so that Mecatec's products arecurrently being exported all over the world through morethan 50 dealers stationed in the U.S., Europe and Asia.Mecatec's technical competence was demonstratedthrough its manufacture and export of box girders forexpressways and railroads in 1997, while the company'sexpertise in steel bridge assembly was widely recognizedafter the successful completion of the Gwangan Bridge (suspension bridge) in Busan and the Yeonryuk Bridge (double-tieredtruss bridge with railway) that links to Incheon International Airport. Other products include robots, factory automationsystems, and environmental and water plants.
HSD Engine Co., Ltd.
Doosan Mecatec co., Ltd.
1918
The new leader in the laminate industry
Electro-Materials BG, founded in 1974, is a world-leading producer of copper-clad laminate (CCL), a key component ofprinted circuit boards. The company's range of CCLs has been acknowledged throughout the world for high quality, asindicated by its winning the recognition of KS, UL of the U.S., BSI of Britain, CSA of Canada, VDE of Germany, ISO 9002, ISO14001 and QS 9000. The products are not only used by high-profile domestic manufacturers such as Samsung and LG, butare also exported to more than 30 countries for use by world-famous electronic appliance manufacturers such as Sony,Hitachi, Toshiba, IBM, Philips, AT&T, Thompson and Siemens. The Electro-Materials BG is capable of producing a diverse range of products from homeware to high-technology industrymaterials such as Paper Phenolic, Glass Epoxy, Composite, Thin Core, Mass Lam, Bonding Sheets and Resin Coated CopperFoil. This is largely due to its consistent efforts in product development to satisfy changing customer needs. No matter whenand where our customers need our services, we will provide a wide range of quality products through our integrated salesand marketing network and top-notch technical expertise. Under the ultimate flag of customer satisfaction,Electro MaterialsBG is preparing to become a leader in the world's CCL industry through 6 domestic business plants (in Gumi, Jeungpyeong,Iksan, Kimcheon, and Ansan), its 2 corporate centers (in Hongkong, Singapore) and 4 branches (in Japan, USA, China andGermany). Electro-Materials BG is currently endeavoring to expand its business scope to include a range of electronicmaterials. Phenol CCLMade from paper and phenol resin, this CCL for home consumers is used in TVs, VCRs, audio systems, refrigerators, washing machines,and CD-ROMs. This is an outstanding product, and is the only single product to capture the number one market share in the world.Epoxy CCLMade from glass fiber and epoxy resin, it is a Epoxy CCL product that is used in high-tech electronic equipment. Chemical productsWe are manufacturing industry glues, coating chemicals and optic plastics that are classified as precision chemical products.
A manufacturer of general packaging materials and household articles
Techpack BG merged into Doosan Corporation on Desember 31, 2001, and was re-registered under the new name of DoosanTechpack Co., Ltd. The business group is dedicated to the production of glass containers, cans and PET bottles, as well asParka Glass and Parka Crystal tableware. To diversify the company it entered the glassware, crystal and PET industriesduring the 1980s. Then in 1998, the company established itself firmly in the field of general containers and tableware bymerging with Doosan Can Manufacturing, the domestic leader in the metal container industry.Doosan Techpack is the number one market share leader in the domestic bottling/canning industry. Techpack is currentlysupplying its products to such key clients as OB Beer, Coca Cola, Woongjin Foods, Lotte Chilsung and other major Koreanliquor and beverage companies, while simultaneously increasing exports to the U.S., Japan and East Asia. As a result ofcontinued efforts toward 'achieving business value through customer satisfaction', Techpack won the 'Quality ManagementAward of 1987' and obtained ISO 9002 certification in 1994.Also designated as an environmentally friendly company,Techpack has been developing into a trustworthy firmthat consumers can rely on. Doosan Techpack willfurther its efforts to improve the lives of ordinary peopleby working closely with its customers.
Doosan Corporation
Electro-Materials BG
Doosan Corporation
Techpack BG
2120
Telemetering systems constructor
Doosan TMS is an enterprise specializing in the construction of telementering systems (automatedenvironmental monitoring systems), which remotely monitors and supervises the release ofenvironmental-related waste emissions, and the development and supply of environmentalmonitoring equipment, information technology and software. The company is taking part in the 21stcentury’s national policy for developing and building advanced environmental management systems,and thus is playing a role in preserving Korea’s environment. The company also plans to concentrateon the development of information technology equipment for related industries. Doosan TMS isbecoming the sole leader in making the 21st century a clean and pleasant environment to live.
Solution Service, Data Center, ASP
First established as Dongyang Computer Technology in the 1970s, the company survived the soaringwave of informationalization and business environment changes to emerge reborn as DoosanInformation & Communication. In its current incarnation, Doosan Information & Communication is anewly organized total solution provider that assures customer satisfaction by offering a full range ofsoftware consulting and engineering services based on its 20 years of experience and know-how inthe areas of information and communication. With the ultimate goal of realizing 'total customersatisfaction', the Doosan Information & Communication BU promises to always listen to customersin order to establish a 'Positive', 'Passionate' and 'Professional' corporate culture and become aleading total service provider of the 21st century information society that we can all take pride in.
A manufacturer of ultra-precision semi-conductor equipment
Semicontech is the pioneering semiconductor system manufacturer behind Korea's firstdevelopment of CMP (Chemical Mechanical Polisher), a revolutionary pretreatment system forsemiconductors. Semicontech was a premiere participant in the government's scheme to develop auniquely Korean CMP, and the first company in the nation to successfully devise a workable system. CMP is an essential system for semiconductor elements production, and is used for the precisionpolishing of wafer surfaces via chemical and mechanical methods. The demand for CMP is predictedto rise drastically following the induction of minute changes to the circuitry of semiconductors. As anemerging provider of CMPs, Semicontech is concentrating all its efforts on the delivery of totalcustomer satisfaction by developing differentiated methods of polishing semiconductors, post CMPcleaners, in-line metrology, motor currents, optic EPD and other accessory systems. Starting withthe launch of CMP sales to domestic semiconductor manufacturers this year, Semicontech plans toconstruct a mass production system and make its way into overseas markets as well.
Diverse technology for the production of lids
Over the past three decades since 1965, Samhwa Crown & Closure Co., Ltd., a bottle capmanufacturer, has produced plastic caps, ROPP caps as well as crown caps. In addition, it hasdeveloped new technology and facilities such as metal printing and bottle cap machinery that hasturned it into a general bottle cap manufacturer of international scale and reputation. Consistent efforts at technical innovation and research and development have gained the Company atechnological edge and have given it a good reputation in both the international and domesticmarkets. Since 1997 it has exported bottle caps and production facilities to 12 countries includingJapan, China, Russia, South-East Asian countries as well as to the Coca Cola Company. The Companyas also been accorded the status of an environmentally friendly company as a result of efforts toharmonize Company needs with environmental safety. Samhwa Crown & Closure Co., Ltd. continuesefforts to develop innovative technology to meet the sophisticated packaging needs of the 21st Century.
High value-added biotechnology and fine chemicals business
Biotech BU aims to expand its high value-added technology-centered business based on thetechnologies it has accumulated in the areas of biotechnology and fine chemicals. As a result of thesuccessful acquisition of technology in such fields, the BU is the exclusive supplier of sphingolipid, aningredient in cosmetics, to the domestic market. It also holds the world-wide patent for LPE (a type ofphospholipid for agriculture) technology. Biotech BU has taken the recent expansion ofthe Iksan factory, the only LPE factory in the world in 2000, as an opportunity to becomea leader in the lipid related business, after posting a robust 193% year-on-year increasein sales in 2000. In addition, the BU is also engaged in the production of lecithin (used inbaby food) and high purity phospholipid (an ingredient in pharmaceuticals), for whichKorean businesses previously had to rely on imports. Elsewhere, the BU is supplyingfunctional materials,to domestic and overseas cosmetics, agricultural products,pharmaceutical and food manufacturers. All of these products have received highacclaim at international product exhibitions such as In-Cosmetics, Cphl, FIE and PCIA.
Samhwa Crown & Closure Co., Ltd.
Doosan TMS Co., Ltd.
Semicontech CorporationDoosan Corporation
Biotech BU
Doosan Corporation
Information & Communication BU
Doosan Corporation Trading BG
Trading DivisionFastfood & restaurant DivisionAutomobile BU
Liquor BGFood BG
Kimchi BUBurger King BUAnimal feed BU
R&D CenterFashion BG
POLO BUGUESS/DK BU
Publishing BGPrinting BU
Magazine BUTower BU
Doosan Tower Corporation
Doosan Corporation Trading BG
Trading DivisionFastfood & restaurant DivisionAutomobile BU
Liquor BGFood BG
Kimchi BUBurger King BUAnimal feed BU
R&D CenterFashion BG
POLO BUGUESS/DK BU
Publishing BGPrinting BU
Magazine BUTower BU
Doosan Tower Corporation
Doosan’s Power Brands to
Impress Customer
LOVE
&CO
MFOR
T
Consumer
Businesses
2524
Worldwide general distribution business enterprise
First established back in 1896 as the Park Seoung-jik Store, today Doosan Trading BG stands as a powerfulentity that has evolved into the mother company of the Group. Over more than a century of operations it hasweathered a countless number of crises, including the Korean War, and yet it continues to grow as thespearhead of Doosan Group's trading businesses.In the wake of drastic business environment changes, in particular the national economic crisis of 1997, theTrading BG had to shift its original focus on imports and exports and transform into an organization with anemphasis on domestic distribution services. As a result of this business restructuring, Doosan Trading BG iscurrently running a variety of import & export businesses such as wine export, import & export agencyservices, import & sales of home appliances, chemical import & sales, food sales, distribution services, supplyof dining facilities and imported car sales. Based on a wide overseas network, Doosan Trading BG is extendingthe reach of its sourcing capabilities to develop foreign relationships and products and enhancing its prowessat marketing and distribution services through the aegis of domestic business activity. Doosan Trading BG isnow strengthening internal resources on the basis of core capabilities accumulated in the past, and focusingon the development of growth engines for future business on the path to a creative global company.
Trading Division
Liquor ExportDoosan Trading BG is exporting various types of high quality soju, cheongju (clear strained rice wine),plum wine and other types of Korean liquor to the U.S., Japan, China, Southeast Asia, Europe and over 40other countries by utilizing overseas networks and specialists.
Import & Export ServicesDoosan Trading BG provides various services for the import of materials and export of machineries, prints,kimchi and packing materials based on its overseas network and know-how in trade finance, customsclearance, transportation and import/export insurance.
Import & Sales of Home AppliancesDoosan Trading BG imports Whirlpool, Panasonic, Fujitsu and other international brands based on itsforeign sourcing capabilities, marketing power in Korea and capacity for after-sales services. It alsoimports Matsushita's National System Air Conditioner while developing its own brand 'DZ' en route toexpanding the product line into air conditioners and heaters.
Chemical Import & SalesDoosan Trading BG imports and sells soda ash, silica, phenol, TiO2, tung oil, acetone, gum rosin and TEAbased on its unsurpassed distribution know-how, experience accumulated through many years of bulk-biz, and a nationwide distribution network that covers all areas of Busan, Ulsan, Gunsan and Incheon.
Food Sales, Distribution and Dining FacilitiesDoosan Trading BG has a nationwide distribution network for daily deliveries and an advanced system thatenables the simultaneous delivery of frozen/refrigerated products. As a total food service provider it alsoprovides imported dining materials and distribution services for fast-food restaurants like KFC, largerestaurants, catering companies, CVS, discount stores and department stores.
Automobile BUDoosan Automobile BU is securing an advantageous position in the swiftly growing imported car market basedon its core capabilities and three years of prodigious experience. By fully utilizing its unmatched serviceinfrastructure, Doosan Automobile BU continues to establish a stable marketing basis while simultaneouslyrealizing a customer-oriented marketing process that handles all aspects of sales and after-sales service. Inkeeping pace with the increasing number of imported car buyers and their demand for premium high qualitybrands, Doosan Automobile BU is strengthening its marketing network with management strategies that focussquarely on profitability.
Doosan Corporation
Trading BG
2726
Fastfood & restaurant Division
KFC
KFC is rapidly becoming a leading brand in the fast-food industry, as based on its top quality products and services. KFCserves only spring chickens that have been carefully selected and delivered daily by a domestic poultry company.Seasoned with KFC's 11 secret ingredients and fried in pressure cookers using 100% vegetable oil, Kentucky Fried Chickenhas a unique flavor that no one else can copy. As a measure of its strict quality control and exacting managerial doctrine,KFC has introduced the CHAMPS (Cleanliness, Hospitality, Accuracy of Orders, Maintenance of Facilities, Product Quality,Speed of Service) system in which professional 'Mystery Shoppers' check 34 different items including food temperature,speed of service and cleanliness. KFC is carrying out advanced marketing activities by continuously developing new menuitems and becoming the first company in the fast-food industry to offer membership services. KFC is also focusing on theestablishment of brand value by implementing a special quality inspection system called 'STAR Audit' for its suppliers, inorder to ensure the use of only top quality materials.
DOOTA Team
Doota Team manages 「doota! Vita!」newly located at Doosan Tower (8th, 9th and 10th floors), and operates cateringoutlets at the Incheon International Airport. 「doota! Vita!」is a zone dedicated to catering to the 'Y' generation'scontinuously changing tastes. The project was carried out with the main concepts of 'escape' and 'release' from normallife in mind. The 8th floor is an entertainment and virtual reality zone, where you can enjoy an indoor shooting gallery andhigh technology simulation arcade. The food court, located at 9th floor, seats 400 people and its menu includesinexpensive eastern, western and fusion menus to suit the palates of young customers. The 10th floor creates a new wavestyle by embodying a futuristic vision of the 2020s. It has a 'Beer Festiva' beer pub, 'Little Italy' Italian restaurant and 'Gigul2' Korean restaurant.The Airport Business Team is currently operating and managing the food and beverage business at the IncheonInternational Airport. The 22 catering outlets include 3 coffee shops, 5 snack bars, 1 bakery, 2 ice-cream stalls, 2 fast foodrestaurants, 6 food courts, 2 cocktail bars and 1 family restaurant It supplies a diverse quality foods and services toforeign passengers at the HUB airport and global gateway of North-East Asia.
One-stop fashion shopping mall
It has been four years since the shopping mall 'Doota' was first opened to great fanfare back in February 1999. Dootaoffers a one-stop shopping system that offers consumers a veritable cornucopia of retail choices, with 11 differentcategories of goods spread enticingly across 12 expansive floors (from the second basement to the 10th story). Every year,more than 30 million Korean and foreign shoppers flock to the 1,800 shops located inside the mall. Doota has beenleading the restructuring push of the domestic shopping industry, and was the first local mega-complex to adopt a fixedprice system and Doota-certified store promotion program while offering a range of value-added services such as an on-line shopping mall 'doota.com', mileage services, gift certificates, Doota Venture Designer Contest, fashion shows andmodel pageants. Other accomplishments include the opening of a new-generation designer mall called Dooche Zone andan information center for foreigners. Doota is also the first shopping center to have implemented advanced managerialsystems, such as the positioning of floor managers on each story of the building. Doota is striving to become aninternational shopping mecca by providing differentiated services and promoting globalization based on its strongmanagement background.
Property lease and service
Doosan Tower BU is in charge of leasing offices and retail outlets in the 34-floor Doosan Tower Building (7 basementfloors), which was first opened in December 1998. The Business Unit also manages a 2.4 million pyeong pasture and salt field.
Doosan Corporation
Tower BU
Doosan Tower Corporation
2928
Top-class total liquor manufacturer
Doosan Liquor BG is the largest brewery company in Korea, and is wholly dedicated to the fulfillment of various customer desiresby offering a full range of liquor brands that includes soju, cheongju (clear strained rice wine), wines, plum wine and whisky.Along with its wildly popular 'SAN (Mountain)' product, a soju mixed with green tea to reduce hangover symptoms, DoosanLiquor BG holds the #1 market share with low-proof liquor brands like 'Cheongha', 'Seonljungmae' and 'Majuang', arepresentative Korean wine. Doosan Liquor BG also boldly introduced the first mushroom wine on the market, known simply as'Natural SAN (Mountain) Mushroom', which is fast becoming one of the most popular wines in Korea. Doosan's smash newwhisky brand 'Peers Club18' has also been satisfying the appetites of whisky lovers since it was first put on the market in 2002.Recognized for its outstanding brewery quality, Doosan Liquor BG's brands are swiftly growing in popularity within overseasmarkets as well. In particular, over three million cases of 'SAN (Mountain)' have been sold in Japan since the product was firstintroduced to Japanese drinkers in 2001. Doosan Liquor BG will strive to become the best multi-brand brewery company in Korea,as it continues to satisfy customer demands by offering only the highest-quality products as a result of unstinting R&D efforts.
Kimchi BU
Chongga Kimchi, the leader of all kimchi brands, acquired the first KS mark in the domestic Kimchi industry for the first time andis currently exporting kimchi all over the world including Japan, USA, China, South East Asia and Europe based on its superiortechnology, Chongga has earned several patents including the 'deodorized kimchi'. With Chongga's products having beendesignated as officially licensed products for the '92 Barcelona Olympics and the 2002 World Cup, Korean traditional food Kimchiis recognized throughout the world for its high quality and taste. Chongga Kimchi has acquired the 'World-class Product' licenseand the 'Korean traditional food' license in 1995 and 2001. Chongga is currently producing more than 13 different Kimchi productsincluding Poggi Kimchi and Chong-gak Kimchi, in assorted packagings and volumes, while also responding to customers' diversedemands by producing special regional products such as Ibuk Kimchi(North Korean style Kimchi).
Burger King BU
A top brand in the fast food market, Burger King has adopted a policy that differentiates it from competitors in terms of productrange, outlet management and service. Burger King’s 100%-pure beef burgers are flame-broiled, giving them their famous andunique flavor. The BU has adopted the motto “Quality, Service and Cleanliness” , putting customers first, and always striving toplease them with better products and service.
Animal feedBU
Since opening a feed factory in Samjeong-dong, Ojeong-gu, Bucheon back in 1987, with an initial capacity of just 300,000 tons peryear, Baekdoo Feed has become one of the major domestic feed companies in Korea. With the implementation of EP in 1996, thefactory now churns out a wide variety of animal feed (powder, pellet, flake, expanding, etc.) via a fully automated process thathandles all aspects of manufacture from materials input to end production. Last year, Doosan animal feed BU accomplishedaverage monthly sales of 390,000 tons and obtained international SGS certificates under the Dutch RvA standard by implementingHACCP - a critical control system for hazard analysis. The Business Unit also established a safety system for livestock productsthrough its adoption of a 'Product Safety System' with the cooperation of the KSA (Korean Standards Association). As part of itscontribution to the development of the domestic livestock industry, Doosan animal feed BU produces over 80 different types ofanimal feed for layer (parent stock, quail), broiler, swine, dairy, beef cattle and dogs.
Established in June 2002, the Doosan R&D Center is an independent research institute that aims to create a new global foodculture through the success of its R&BD (Business Oriented R&D) system. It seeks to provide solutions for the health and well-being of ordinary people by combining the virtues of biotech with culture and services. The Doosan R&D Center is being shapedinto an organization that can make practical contributions to each business area, rather than simply conducting theoreticalresearch activities. At the same time, with its continued development of advanced researchers and technologies, the Center isplaying the role of Doosan Group's growth engine by creating innovative new products that can thrive in the market.
Doosan Corporation
Liquor BG
Doosan Corporation
Food BG
Doosan Corporation
R&D Center
3130
POLO BU
Renowned throughout the world for its aristocratic and traditional style, Polo Ralph Lauren has beenoffering high quality garments for more than 30 years. Blending American lifestyle convenience withEnglish tradition in apparel for men, women and children. This essence of nobility continues into itsaccessories, home furnishings and fragrances. Polo presents the perfect balance for a refinedsensibility. Polo Ralph Lauren is operating 180 stores throughout Korea, including its 3 direct retailstores, which are mainly located in prestigious department stores. The stores offer Polo Sport, PoloGolf, Ralph Lauren Sport (apparel for women), Ralph Lauren Black Label (the highest collection linein Polo), Polo Boys & Girls (apparel for children), Polo Jeans Co. (prestige denim) and Ralph LaurenHome (home furnishings) along with its classic Polo line.
GUESS/DK BU
Stylish fashion leaders have long loved Guess, a jean brand that concentrates on sexy silhouettes,since it was launched under a refined concept of silhouettes and mobile functionality. Guess hasshowed its capability as an international brand in Korea for more than 10 years, and continues to setworldwide trends every year. This year promises to be a special one for GUESS, which plans tointroduce its sweeping new vision of fashionable and trendy styles through the brand concept "Young,Sexy, Adventurous". A new line of GUESS handbags was launched in February of this year, and as ofMarch 2003 there are now three GUESS stores operating in the fashion hot spots of Myeongdong,Galleria Apgujeong and Mia Sinsegae. Following on the heels of the central concept "Young, Casual,Trendy", GUESS handbag is enjoying the explosive popularity of fashion leaders thanks to moderndesigns and reasonable price tags. DKNY, a bridge line of top female U.S. designer, Donna Karan,expresses New York's slick and refined feel in a direct and powerful manner. After successfullylaunching wardrobes for both women and men in February and September 2000, she has secured adiverse following with her modern image and refined products. DKNY will further strengthen itsluxury brand image by unfolding Donna Karan's elite fashion brand: the Donna Karan Line.First introduced in Korea in 1994, Mickey Club has been loved by millions for its friendly characterdesigns and outstanding quality. Offering durable action-wear that features a wide range of excitingaccessories, Mickey Club has grown into a total coordination brand for children.
Doosan Corporation
Fashion BG
Doosan Corporation
Publishing BG
Doosan Corporation
Magazine BU
Korea’s best general publishing company
The Publishing BG is Korea’s best general publisher, which has published quality books for infantsto adults over the past 50 years. It publishes a wide range of books from school reference book totextbooks and dictionaries. The company makes an additional contribution to school education bypublishing officially approved textbooks. And as more students attend private institutes it is alsosupporting the world of private education, by successfully operating educational chains such as‘Dong-a School’ and ‘Brainy’. Furthermore, we are doing our best to satisfy fast-changing customerdemands to follow and strengthen IT education in the 21st century, by inputting all oureducational contents into a central database in order.The Publishing BG will forge new ground in the domestic printing industry by supplyingneeded information through diverse channels, and leading the digitalization of education.
Printing BU
The Printing BU has been engaged in the printing business for over half a century, serving bothdomestic and overseas customers. The Unit's priority is to offer the highest quality and prompthandling of orders. In the division of commercial printing and book publication, the BU is equippedwith the nation's best one-stop service system that covers a diverse range of services, from pre-press, sheet-fed & web-fed printing, binding, special processing and dispatch of completed goods.
Korea’s best magazine publisher
Doosan Magazine BU, as a leading publisher in the Korean magazine industry, is the driving forcebehind the domestic distribution of many reputable international magazines. Taking the successfulpublication of Reader's Digest and the fashion bible VOGUE as its starting point, Doosan MagazineBU continues to create and stimulate new avenues into Korean magazine markets. DoosanMagazine BU achieved significant success with its publication of the lifestyle magazine GQ for men intheir twenties ~ thirties in 2001, and went on to offer Vogue Girl for women in their early twenties inMarch of last year. The case of Vogue Girl's strategic development of a niche market changed thewomen's magazine market forever, as countless number of magazine publishers used the innovativepublication as a guiding benchmark. Based on its experience and know-how in editing andpublication as well as consistent market/consumer research, Doosan Magazine BU is taking the leadonce more by publishing Korea's first well-being lifestyle magazine ALLURE in July. The homepagesof these four magazines are again providing an example for others to follow, as they evolve into aunique form of online media with excellent offline material and creative online contents, as well as adigital platform to offer various promotional events to visitors.
Oricom Inc.Doosan Enterprise Co., Ltd.Doosan Bears Inc.Neoplux Capital Co., Ltd.Korea Book Promotion Co., Ltd.Wilus IncNovos Inc.
Oriental Brewery Co., Ltd.Doosan Corn Products Korea, Inc.Nutrapark Inc.Doosan EcoBizNet Inc.
Yonkang FoundationDoosan Credit UnionDoosan Training Center
Where Doosan stands is the
Center of Business
SATI
SFYIN
GService Businesses
Investment Companies
Auxiliary Organizations
3534
Oricom Inc.
Venture capital and corporate restructuring company
Neoplux capital, an investment firm specialized in Venture capital and corporate restructuring offersdirect investment and various services. Neoplux, which has KRW 17 billion in capital and 20 specialists,is concentrating its investment on promising start-up companies in high-tech industries such assemiconductor, materials & components, mobile communications, internet multimedia and biotech.As of March 2003, Neoplux Capital has organized a total of KRW 35 billion in investment funds andsecured four investment partnerships, thus accumulating a total reserve of 82 billion won.
KBPC's Book Gift Certificates, a Leading Gift Certificate
The main business of Korea Book Promotion Co. (KBPC) is the issuance of book gift certificates. Overthe past decade, KBPC-issued book gift certificates have contributed greatly to the distribution ofbooks among the general population and have contributed to the development of a sound andbeneficial gift-giving culture. Needless to say, the dazzling growth in book gift certificate sales has alsocontributed positively to the Korean publishing industry and bookstores, as well as encouraging morepeople to read more books. Customers continue to praise the gift certificates as a pleasant method ofgift giving that entails minimum burden. The Company expects to see an expansion in the market forits book gift certificates with the introduction of e-Commerce and Pre-paid cards.
IT Consulting and solutions development
Wilus provides strategic consulting and solutions with an end-to-end service system for consulting andpackage software. Centering on package e-business solutions and the concept of 'one-stop shopping',Wilus provides all necessary solutions and services for companies engaged in e-business. Through theaegis of an exclusive contract with J.D. Edwards, an international solutions provider, Wilus is offeringvarious solutions to suit the particular needs of domestic companies, and currently boasts thepresence of over 30 major firms on its client roster.
PSM/TOP and consulting service
A specialist in performance improvement and cost reduction, Novos is a total operation-consultingfirm that provides optimal customized consulting services to cover all the areas of operation process.Novos has thus far carried out various projects for Doosan Enterprise, Maeil Dairy Industry, DPI,Ssamji, Dongkuk Steel, HSD Engine, Borneo, Doosan Construction and Doosan Heavy Industries, whileother major initiatives are still being pursued on an ongoing basis. The Novos program uses verifiedconsulting techniques like PSM (Purchasing & Supply Management) and TOP (Total OperationalPerformance), which bear a successful history of application in over 2,000 companies worldwide and 20domestic companies. In the course of carrying out various projects, Novos was also able to develop the0highly innovative PEV (Performance Enhancing Vehicle) program, which is used to stimulate short-term performance improvement and continuous growth. Novos works with over 20 professionalconsultants from international consulting firms, major foreign companies and domesticconglomerates. Specialists in the areas of purchasing and production, they are pouring their bestefforts into improving the profit structure and competitive edge of domestic companies via theprovision of matchless quality services.
A total brand management company
For the past 36 years, Oricom has been achieving successful results with the leveraging of advancedadvertising campaigns and marketing strategies. As a forerunner in the trade, Oricom has introducedadvanced advertising and marketing theories while playing a major role in the history of the Koreanadvertisement industry. Oricom was one of the premier domestic firms behind the establishment ofnovel research, PR, SP and brand research centers, and also the first to win a series of internationaladvertisement awards. The key factor in the 21st century market is the brand. As a brand managementcompany that provides professional services including creative, media, promotion, Internet marketingand brand consulting, Oricom is dedicated to increasing the brand assets of its clients. Ever since itcame on the scene as the first communication service provider in Korea back in 1967, Oricom has beenceaselessly striving to develop successful brands and companies.
Leisure business
Since its establishment in 1987, Doosan Enterprise has built Doosan Resort Chuncheon Country Cluband Doosan Resort Chuncheon Condominium into the best resorts in Gangwon-do. Doosan Enterprisehas also become a leading player in the Korean leisure industry, as evinced by its thrust to developworld-class golf courses in cooperation with major foreign golf clubs. Not only that, but DoosanEnterprise is playing a compassionate role as a 'human company' that brings hopes and dreams to life,by training young golfers, hosting the Yeongsanhong Festival and supporting disenfranchised orphans.Doosan Enterprise continues to undertake a range of prestige strategies to secure its position in thecompetitive leisure industry of the 21st century, while preserving precious natural resources throughthe best technology and services possible. Doosan Enterprise will continue to play a central role in thedomestic leisure industry.
A professional baseball team
The Doosan Bears have won the Korean Series three times. They became national champions in 1982,the inaugural year of the Korean professional baseball league, and rose again to victory in 1995 and2001. As a Seoul baseball team it has left a deep impression on the minds of its fans, by achieving theremarkable record of qualifying for post-season games four years in a row (from 1998 to 2001). TheDoosan Bears will continue to play powerful and confident baseball for the fans. Doosan Bears is tryingits best to settle a new culture that can give more than simple sports entertainment by inspiring vitalityin the everyday life of common people.
Doosan Enterprise Co., Ltd.
Doosan Bears Inc.
Neoplux Capital Co., Ltd.
Korea Book Promotion Co., Ltd.
Wilus Inc
Novos Inc.
3736
Safe, Effective Solutions to grow your Agribusiness
A U.S.-based agrobiochemical venture business established in 1996 with Doosan as a majorityshareholder, Nutrapark is a firm commercializing the agricultural produce processing technologyusing LPE developed by Dr. Jiwan Palta at Wisconsin University. The technology is used to promotecrop growth and maturity and minimize aging in storage and is expected to drastically change thefuture of the agrochemical industry. Patent rights have been applied for and the firm is building aworldwide distribution network and mass-production system with Doosan's Biotech BU as the mainsupplier of necessary raw materials. Nutrapark has developed a technique to use the chemicalcompound LPE (lysophophatidylethanolamine), in enhancing the storage, chromaticity and growth offruits and vegetables. Nutrapark is currently offering services for its LPE spray schedule, conditionsand effects evaluation while proposing viable methods to increase customer value.
Environmental management
Established in 2000, Doosan EcoBizNet is a spin-off of Doosan Group's Environment Center with aspecific mandate to combine environmental management and technology. The company is currentlyproviding a gamut of environmental consulting services, including business environment analysis,audits, policy, reliability evaluation systems and information systems, as well as environmentaltechnology services utilizing electrostatic water treatment and high frequency treatment systems. Itsactivities also encompass work on the design, diagnosis, operation & maintenance, improvementand consulting on pollution prevention systems. As for the biotech business, Doosan EcoBizNet isconducting continuous R&D activities while producing a 'Photosynthetic Bacteria Culture System'(Patent No. 68352) as well as Aqua-Bacta for fish farms and Eco-Bacta for pig and chicken farms.
The Yonkang Foundation was established on October 4, 1978 by Doosan Group and admirers of ParkDu-byeong (1910~1973), the founder of Doosan Group. It was founded in compliance with the desire ofthe late chairman, who wrote under the pseudonym Yonkang, to stress the corporate responsibility of"Giving Back to Society". By the end of 2002, the Yonkang Foundation had supported various socialprograms by offering total cash donations of 14.4 billion won. The Foundation is also involved in thedevelopment of cultural performance programs and cultural activities supervised by civilians, andhas freely provided the Yonkang Hall for cultural performances since May 1993.
Doosan Credit Union was the first company union to exceed 100 billion won in capital - a remarkablefeat that it carried out back in September 1994. It is also the only company union to enjoy the scale ofa conglomerate, since all subsidiary companies and employees of Doosan Group are its unionmembers. Established for the promotion of employee welfare, the three union branches are locatedin Doosan Tower, Daechi-dong and Nonhyeon-dong.
Ever since it was first opened in 1977, Doosan Training Center has been the heart of manpowertraining for the company via an impressive syllabus of educational programs on new corporateculture and performance improvement. Courses since 1995 have focused on employee training todevelop a strategic mindset and capabilities, thus better enabling workers to secure anadvantageous position in the fast-changing global business environment.
Oriental Brewery has been a leader and major player in the Korean alcoholic beverage industry forthe past 50 years since its establishment in 1952. At present, its 3 factories in Icheon, Gwangju andCheongwon produce OB, Cass, Cafri, Budweiser, etc. In 1998, the Brewery was awarded the AIBAGold Prize. Oriental Brewery was designated the official supplier of beer for the Seoul Asian Gamesin 1986, the Seoul Olympic Games in 1988 and the Muju Winter Universiad Games in 1997. OrientalBrewery is also a sponsor of the 2002 World Cup national soccer team. Beer enthusiasts in 26countries have loved OB since it was first exported in 1983. The Brewery took another leap forwardinto the global market following the signing of a 50:50 joint venture with Interbrew, a Belgian beerbrewer, on September 1, 1998. Interbrew increased its involvement with OB by owning 95% of theBrewer's shares on June 2002. As Interbrew, the worlds 3rd beer brewer, became Oriental Brewery'smajority shareholder, it not only enhanced its competitiveness in domestic and foreign marketsthrough the acquisition of new production know-how, technology and global marketing, but it alsogained a strategic platform to advance into the Asian market and increase exports. By taking over theCass Brewery in December 1999, Oriental Brewery benefited from the synergy effects of these twomajor brands, enabling the Company to increase customer satisfaction and become a leading firm inthe industry. With the completion of the Cass Brewery takeover, Oriental Brewery moved its headoffice from Icheon, Gyeonggi Province to Cheongwon, Chungbuk Province.
Doosan Corn Products Korea was jointly established by Doosan Food BG and CPI (Corn ProductsInternational), the world's third largest corn production company based in Illinois, USA. Since itsestablishment in December 1999, Doosan Corn Products Korea has been successful in securing anadvantageous position in domestic and overseas markets by combining Doosan's managementcapabilities and CPI's advanced corn processing lines. Doosan Corn Products Korea currently has anannual corn grinding capacity of 530,000 tons, and two factories in Icheon and Incheon truck outmassive quantities of starch, molasses and oligosaccharide each day. By supplying starch productsto the domestic populace, the company is contributing to the improvement of public health and thevital development of the food, paper and fiber industries. Doosan Corn Products Korea was the firstdomestic company to obtain the KS Mark for molasses and high fructose, and these products werealso certified by the ISO 9002 standard in 2001. Doosan Corn Products Korea obtained the ISO 14001certification in April 2003 for its superior quality control and environmental friendliness.
Yonkang Foundation
Doosan Credit Union
Doosan Training Center
Investment Companies
Oriental Brewery Co., Ltd.
Doosan Corn Products Korea, Inc.
Nutrapark Inc.
Doosan EcoBizNet Inc.
Auxiliary Organizations
3938
To give support to military and the police, between 1991 and 2002 Doosan has presented atotal of 25 million tea bags to 270 military camps and police stations, and presently makes ita rule to pay yearly visits to military camps.
Doosan supports a program to assist teachers to visit sites and remains of Koreanhistorical significance scattered around China and Japan, helping them feel the spirit oftheir ancestors first-hand and have a chance to compare Korea culture with others’. The program, the largest of its kind in the nation, has sent 1,433 teachers abroad so far on atotal of 14 occasions since 1989.
Doosan provides funding to professors undertaking environmental research. Each year itselects environment-related research subjects from 10 universities nation-wide, coveringsuch issues as the atmosphere, waste, and wastewater. Grants up to KRW 10 million perproject are provided. So far Doosan has extended a total of KRW 824 million to 84professors.
The Tea of Love Campaign
Teachers’ Academic Travel Overseas
Research Assistance
SocialWelfare
Culture &Art
Industrial-educationalcooperation
The protectionof Environment
AcademicSupport
the society, customer
Community Relations
With
Liquor BG
Tel : 82-2-3398-1616Fax : 82-2-3398-1690www.wine.co.krwww.soju.co.kr
Electro-Materials BG
Tel : 82-2-3398-1970Fax : 82-2-3398-1979www.dse.co.kr
Fashion BG
Tel : 82-2-3398-1796Fax : 82-2-3398-1796www.doosan.com
Trading BG
Tel : 82-2-3398-1599Fax : 82-2-3398-1521www.whirlpool.co.krwww.volvocars.co.kr
Publishing BG
Tel : 82-2-3398-8800Fax : 82-2-3398-2660www.dong-a.comwww.encyber.com
Techpack BG
Tel : 82-2-3398-2828Fax : 82-2-3398-2130www.doosantechpack.comwww.parkalife.com
Food BG
Tel : 82-2-3398-1217Fax : 82-2-3398-2132www.chongga.comwww.doosanfeed.com
Biotech BU
Tel : 82-31-260-1114Fax : 82-31-260-1381biotech.doosan.com
Information&Communication BU
Tel : 82-2-3398-2041Fax : 82-2-3398-2060www.doosanic.co.kr
Magazine BU
Tel : 82-2-3398-2612Fax : 82-2-3398-2667~8www.vogue.co.krwww.gqkorea.co.kr
Tower BU
Tel : 82-2-3398-2313Fax : 82-2-3398-2300www.doota.com
R&D Center
Tel : 82-31-260-1417Fax : 82-31-260-1170www.doosan.com
Doosan Construction & Engineering Co., Ltd.
105-7, Nonhyeon-dong, Gangnam-gu, SeoulTel : 82-2-510-3114Fax : 82-2-540-5221www.dsland.co.kr
HSD Engine Co., Ltd.69-3, Sinchon-dong, Changwon-City,Gyeongsangnam-doTel : 82-55-260-6000Fax : 82-55-283-7820www.bestengine.co.kr
Doosan Mecatec Co., Ltd.17th Floor, Doosan Tower 18-12, Euljiro 6-ga, Jung-gu, SeoulTel : 82-2-3398-2799Fax : 82-2-3398-2795www.machinet.com
Samhwa Crown & Closure Co., Ltd.Doosan Tower 18-12, Euljiro 6-ga, Jung-gu, Seoul Tel : 82-2-3398-2816Fax : 82-2-3398-2130www.samhwa.co.kr
Semicontech Corporation587-6, Joong-ri, Dongtan-myeon,Hwaseong-City, Gyeonggi-doTel : 82-31-377-7600Fax : 82-31-377-7611www.semicontech.co.kr
Doosan TMS Co., Ltd.6th Floor, Doosan B/D, 39-3, Seongbok-ri,Suji-eup, Yongin-City, Gyeonggi-doTel : 82-31-260-1949Fax : 82-31-260-1955www.doosantms.com
Doosan Enterprise Co., Ltd.1007-1, Jeongjok-ri, Sindong-myeon,Chuncheon, Gangwon-doTel : 82-33-260-1114Fax : 82-33-263-6060www.doosanresort.co.kr
Doosan Heavy Industries &Construction Co., Ltd.
555, Gwigok-dong, Changwon-City, Gyeongsangnam-do
Tel : 82-55-278-6114Fax : 82-55-264-5551~2www.doosanheavy.com
Neoplux Capital Co., Ltd.15th Floor, Doosan Tower, 18-12, Euljiro6-ga, Jung-gu, SeoulTel : 82-2-3398-1070Fax : 82-2-3398-1071www.neoplux.com
Novos Inc.16th Floor, Korea First Bank B/D, 100,Gongpyeong-dong, Jongno-gu, SeoulTel : 82-2-2003-0900Fax : 82-2-738-0999www.novos.co.kr
Wilus Inc.16th Floor, Korea First Bank B/D, 100,Gongpyeong-dong, Jongno-gu, SeoulTel : 82-2-2003-0990Fax : 82-2-738-0999www.wilus.com
Doosan Bears Inc.10,Jamsil 1 -dong, Songpa-gu, SeoulTel : 82-2-2240-1777Fax : 82-2-2240-1788www.doosanbears.com
Korea Book Promotion Co., Ltd.289-14, Doosan dong-a B/D, Doksan-dong, Geumcheon-gu, SeoulTel : 82-2-784-4769 Fax : 82-2-784-4768www.booknlife.com
Doosan CorporationDoosan Tower 18-12, Euljiro 6-ga, Jung-gu,SeoulTel : 82-2-3398-1081Fax : 82-2-2285-5188www.doosan.com
Oricom Inc.105-7, Nonhyeon-dong, Gangnam-gu,SeoulTel : 82-2-510-4017Fax : 82-2-542-3966www.oricom.com
Network of Branches in Korea
4140
Doosan CorporationTrading Business Group
Los Angeles Doosan America Corp.Wilshire Financial Tower ,3600Wilshire BLVD, Suite 836,Los Angeles, CA 90010, U.S.APhone:1-213-738-7900Fax:1-213-738-7916
Los Angeles Liason OfficeWilshire Financial Tower ,3600Wilshire BLVD, Suite 836,Los Angeles, CA 90010, U.S.APhone:1-213-738-7900Fax:1-213-738-7916
TokyoDoosan Japan Co., Ltd.Room 2411, Mita Kokusai BLVD,1-4-28, Mita, Minato-Ku,Tokyo 108-0073, JapanPhone:81-3-5484-1234Fax:81-3-5484-1845
Hong KongDoosan Hong Kong Ltd.Suite 3001, Tower 2, Gateway Tower,25 Canton Road, Tsimshatsui, Kowloon,Hong Kong, ChinaPhone:852-2815-2238Fax:852-2815-0016
ShanghaiDoosan Corp. Shanghai OfficeRoom 1009, New Town Center, No.83 LoushanGuan Road, Shanghai, China Phone : 86-21-6236-8685Fax : 86-21-6236-8687
BeijingDoosan Baekwha Food & Beverage Co., Ltd.B1/F, Tower A, Cofco Plaza No.8,Jianguomennei Dajie,Beijing, China 10005Phone : 86-10-6526-0599Fax : 86-10-6526-0577
Electro-Materials Business Group
TokyoTokyo Branch Office No. 2411, Mitakokusai bld. 1-4-28, MitaMinatoku, Tokyo, 108-0073, Japan Phone: 81-3-5484-1829Fax : 81-3-5484-1845
FrankfurtEurope Branch OfficeMergenthaler Allee23 D-65760 Eschborn, GermanyPhone : 49 - 6196 - 481576 Fax : 49 - 6196 - 481830
New JerseyU.S.A Branch Office 140 Sylvan Ave Suite 3B Englewood Cliffs, New Jersey 07632, U.S.A Phone : 1-201-944-9913/9914Fax : 1-201-944-9915
ShanghaiShanghai Branch Office Rm 401 New Town Mansion 55 Loushanguan Road, Shanghai, China Phone : 86-21-6275-4429Fax : 86-21-6275-9974
SingaporeDoosan Electro - Materials Singapore Pte Ltd.No. 10. Toh Guan Road # 04 - 01BT T International Tradepark, Singapore, 608838 Phone : 65-6862-6327 Fax : 65-6862-6329
Hong KongDoosan (Hong Kong) Ltd. Suite 3001, Tower 2, Gateway Tower,25 Canton Road, Tsimshatsui, Kowloon,Hong Kong, ChinaPhone : 852-2317-0163Fax : 852-2317-0231
Doosan Mecatec co., Ltd.U.S.ADoosan Machinery America, Inc,36740 Metro Court Sterling Heights, MI 48312, U.S.APhone : 1-586-268-7120 Fax : 1-586-268-7127
GermanyDoosan Machinery EuropeAlbertistrasse, 16, 78056 VS-Schwenningen, GermanyPhone :49-7720-9954-710 ~ 3 Fax : 49-7720-9954-700
ChinaShanghai Technical CenterShanghai Dynasty Business CenterRoom 512, No 457, Wulumuqi Road (N)Jingan district Shanghai, P.R, ChinaPhone : 86-21-6249-3901 Fax : 86-21-6249-1908
Doosan Construction & Engineering Co., Ltd.
Cairo4Ebn Kathir St. Giza, Suez Tower Flt 51,Cairo EgyptPhone : 20-2-761-0574Fax : 20-2-761-0452
Overseas Branches
Doosan Heavy Industries America Corp.140 Sylvan Avenue, Suite 3B, Englewood Cliffs, NJ 07632, U.S.A. Phone: 1-201-944-4554 Fax: 1-201-944-5022/ 5053
Doosan Heavy Industries Japan Corp.Room 2410, Mita Kokusai Bldg., 1-4-28, Mita, Minata-ku, Tokyo 108-0073, JapanPhone: 81-3-3452-5451~3 Fax: 81-3-3452-5624
Doosan Malaysia Sdn. Bhd.(Kuala Lumpur Office)Letter Box No. 86, 22nd Floor, UBN Tower, 10, Jalan P. Ramlee, 50250 Kuala Lumpur, Malaysia Phone: 60-3-2026-8890Fax: 60-3-2026-8891
Inkor Engineering Private Ltd.1508, Maker Chambers 5, Nariman Point, Mumbai 400 021, IndiaPhone: 91-22-202-6504/6515Fax: 91-22-202-6557
Beijing OfficeRoom 1904, Landmark Bldg., 8 North Dongsanhuan Road, Chaoyang Dist., eijing 100004, ChinaPhone: 86-10-6590-0924/ 0109 Fax: 86-10-6590-0991
Dubai OfficeOffice #1002, Al Moosa Tower II, Sheikh Zayed Road, P.O. Box 11859, Dubai, U.A.E.Phone: 971-4-332-2703 Fax: 971-4-332-2714
Frankfurt Office4th Floor, Arabella Center, Lyoner Strasse 44-48, 60528 Frankfurt am Main, GermanyPhone: 49-69-69-50040 Fax: 49-69-69-500410
Riyadh OfficeP.O. Box 9656, Riyadh 11423, Saudi ArabiaPhone: 966-1-419-1920/ 1696/ 0397 Fax: 966-1-419-1995
Taipei Office704, No. 51, Keelung Road Sec. 2, Taipei, Taiwan, Republic of ChinaPhone: 886-2-2739-2255 (ARS) Fax: 886-2-2739-2266
Schenectady OfficeRoom 33-202A, General Electric Bldg., 1 River Road, Schenectady, NY 12345, U.S.A.Phone: 1-518-385-5218/ 2629 Fax: 1-518-385-4984
Windsor Office2000 Day Hill Road, P.O. Box 500, Windsor, CT 06095, U.S.A.Phone: 1-860-731-6482/ 6479 Fax: 1-860-731-6478
Major Subsidiaries
CHICO (Ceylon Heavy Industries & Construction Co., Ltd.)Oruwala Athurugiriya, Sri LankaPhone: 94-1-561310/ 561448 Fax: 94-74-440030
HANVICO (Han-Viet Heavy Industry & Construction Corp.)933 Ton Duc Thang Street, Hong Bang Dist., Hai Phong, VietnamPhone: 84-31-712-708~711 Fax: 84-31-712-714/ 715
HF Controls Corporation16650, Westgrove Drive, #500 Addsion, Texas 75001, USAPhone: 1-972-367-4600 Fax: 1-972-367-4689
HPL (Hanjung Power Ltd.)P.O. Box 2803, Boroko, NCD Port Moresby, Papua New GuineaPhone: 675-320-0529/ 321-2932 Fax: 675-321-2984
PHS (Perak-Hanjoong Simen Sdn. Bhd.)Batu 14, 33700 Padang Rengas in the State of Perak, MalaysiaPhone: 605-758-5648/ 758-4002-202 Fax: 605-758-4052
PT. Doosan IndonesiaJl. Raya Soekarno-Hatta Km.11, 5 Srengsem, Panjang, Bandar, Lampung, IndonesiaPhone: 62-721-32288/ 32292 Fax: 62-721-33216
Shada Industrial Construction Services Co., Ltd.P.O. Box 9656, Riyadh 11423, Saudi ArabiaPhone: 966-1-460-0665~7 Fax: 966-1-460-0682
Overseas Network of Branches
4342
Doosan Heavy Industries & Construction Co.,Ltd.
DOOSAN’s 107-year long History Doosan has resolutely been keeping to a path of corporate growth in pace with industrial expansion, while aptly recognizing the principle that demand and supply mustbe in balance. However, in this age of internationalization - where only the best can survive - Doosan is picking up the pace to transform itself into one of the majorcompanies of the 21st century. These carefully modulated changes in business structure and the challenging spirit of the Doosan family will work to overcome presentdifficulties just as they have in the past, making Doosan the vibrant entity it is today.
1896~1949
Era of new businessesDoosan's history started in 1896as a tiny store in Baeogae, Seoul,owned by Park Seung-jik. The opening of Doosan Store in1946 by Park Doo-byung, thesuccessor to Park Seung-jik, wasthe inception of Doosan's modernhistory. Doosan began with thegoal of creating a new Korea andwriting a new corporate history.
1950~1969
Time to establish amodern managementsystemDoosan established OB Beer in1952 and moved into foreign trade,thus forming a firm basis forexpansion. In the 1960s, the Groupjoined the ranks of leading businessgroups with the establishment ofDoosan Construction & Engineering,Doosan Food & Beverage andDoosan Machinery Industry.Park Doo-Byung led the Group'sefforts to create the strongfoundations of a competitiveenterprise through modernizedmanagement and diversification ofbusiness, bringing in capableCEOs when necessary. He showedimmense zeal for developingbusinesses related to mass mediaand culture as well as public service.
1970~1979
Time for expansionand developmentDoosan has overcome shocks inthe global oil market, and hasmade technical progress byfurthering multilateral cooperationwith other international companies.Recent months have proved to be aperiod of strengthening for theGroup's internal structure, as itexpanded and sold off businessesthrough extensive M&A activities.Doosan bolstered its position as anindustry leader focused on consumerproducts. Its construction, machineryand electronics sectors also grewrapidly. Based on capabilities accumulatedsince the 1970s, Doosan Group hassucceeded in making superlativevertical/horizontal advancement.
1980~1995
Time for the harmonyof preservation andexpansionApplying more effort to makinginroads into overseas markets,Doosan also expanded intopublishing and advertising athome in preparation for the 21stCentury.In the 1990s, Doosan divided itsbusiness sectors into three:information and distribution,consumer products and materials-based technology. Its aims in thatera were globalization and tobecome a first-rate, hi-techenterprise. A hundred years ago,when the nation was just beginningto open its doors to the outsideworld, Doosan started from acorner shop in Baeogae, Seoul. Inthe present day, not content torest on past success, it continuesto build on its strong position.
1996 and onward
Continued advancementWith its successful restructuring, Doosan has turned itself into a specialist in itscore businesses. It is maximizing corporate value through improvements to itsfinancial structure and by attracting large-scale foreign direct investment. Doosanis strong and flexible and is ready to face future challenges, supported by thepreparations for the future we have consistently made over the past 100 years.Doosan has been focusing on professionalization by implementing positiverestructuring plans, while making drastic improvements to its financial structureby the securing of a large amount of foreign funds. The Group also prepared agrowth engine by purchasing Hanjung (renamed Doosan Heavy Industries &Construction), and is currently endeavoring to enhance the level of its technologyand managerial system by promoting the 'New Start' and 'Change & Build'strategies.
4544
Company name Total Assets Total stock holders’equity Net Sales Operating Income
Doosan Corporation 2,998,075 728,841 2,059,812 51,305
Doosan Heavy Industries & Construction Co., Ltd. 3,094,314 1,660,150 2,771,630 150,056
Doosan Construction & Engineering Co., Ltd. 1,264,093 214,987 1,035,674 31,897
Samhwa Crown & Closure Co., Ltd. 110,729 82,571 72,159 12.698
Oricom Inc. 60,848 23,893 36,741 -1,223
Doosan Mecatec Co., Ltd. 390,502 93,191 273,648 -5,519
HSD Engine Co., Ltd. 264,568 91,274 570,763 23,910
Doosan Enterprise Co., Ltd. 148,046 57,158 16,063 1,088
Doosan Bears Inc. 1,975 -4,867 10,777 -2,914
Company name Total Assets Total stock holders’equity Net Sales Operating Income
Doosan Corporation
Doosan Heavy Industries & Construction Co., Ltd.
Doosan Construction & Engineering Co., Ltd.
Samhwa Crown & Closure Co., Ltd.
Oricom Inc.
Doosan Mecatec Co., Ltd.
HSD Engine Co., Ltd.
Doosan Enterprise Co., Ltd.
Doosan Bears Inc.
Total
(Units : millions of Korean won) (Units : millions of Korean won)
2002 Financial Statement 2003 Financial Statement (Provisional)
4746
Financial Summary
2,940,300 729,800 2,103,600 217,100
3,054,400 1,692,300 2,437,900 76,800
1,260,800 237,800 1,156,700 111,600
111,400 88,100 75,000 12,500
90,300 27,800 51,700 5,900
390,900 99,200 315,000 23,000
267,100 97,100 455,000 4,000
127,400 60,900 14,600 800
2,115 -5,767 10,297 -3,185
8,244,715 3,027,233 6,619,797 448,515The others 159,606 -31,950 50,540 -5,470
Total 8,492,756 2,915,248 6,897,807 255,828