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| KOMSCO CEO Cho Yong-man |
CEO Cho places top priority on innovation
By Lee Kyung-min
The state-run Korea Minting, Security Printing & ID Card Operating Corp. (KOMSCO) reported a record-high performance in 2019, a notable feat backed by a diversified business portfolio amid digitization whereby printing banknotes can no longer be its primary source of profit.
The organization said Monday that it recorded sales of 524.6 billion won ($452.1 million) in 2019, up 40 billion won or 9.1 percent from a year earlier.
Its operating profit also topped 10 billion won for the first time in history, up 9.5 billion won in 2018 and 8.8 billion won in 2017. Its revenue from overseas business came to a record high of 65 billion won.
The outstanding performance illustrated by figures that broke records seven years in a row followed corporate initiative to identify new sources of growth engine, a task undertaken by the firm's CEO Cho Yong-man.
"The record performance in 2019 was attributed to our efforts to innovate management. We will continue to ramp up efforts to create social value as a public company," Cho said during a press conference in the government complex in Sejong City, Monday.
Under his leadership, the organization expanded the existing businesses into new areas, such as bullion medal minting, issuing mobile vouchers and a certification business including anti-forgery technology development.
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The new businesses logged a combined 295.5 billion won in sales in 2019, accounting for over half the firm's total sales.
Without the expansion of business, it would have suffered a heavy blow due to plunging sales of banknote issuance over the past few years.
The firm had 110.1 billion won in sales in what used to be a traditional, stable source of profit, a sharper drop from 2016 when the figure was 169.7 billion won.
In 2007, the banknote business reported a sales of 207.5 billion won, accounting for 62 percent of the sales total.
However, it accounted for slightly over a third, or 36.6 percent in 2016, further shrinking to 21 percent in 2019.
Chief among the new profit-generating businesses is bullion medal minting, which logged 91.9 billion won in sales in 2019.
The Korean Tiger Bullion Series Medal, a series of gold bullion medals first introduced in 2016, is drawing continued popularity among collectors from both Korea and around the world.
Certification is another business with significant growth potential amid a steady increase in the number of counterfeits in the market and the subsequent need to crack down on them.
The business which logged 11.7 billion won in sales in 2019 helps manufacturers of certain original products stay competitive and retain consumer trust.
The makers of high-end cosmetics and Cheong Kwan Jang Korean Red Ginseng extract products, for example, can benefit from using labels and packaging made of KOMSCO-developed special materials that can have their authenticity verified with counterfeit tests.
The firm launched KOMSCO platform, the provider of a blockchain-based settlement and payment service provider, with targeted use for residents in remote provincial areas in what could become a way for the flagging economy there to pick up.
Cho, in recognition of excellent management, won a prize in 2019 for innovative corporate management awarded jointly by the Ministry of Trade, Industry and Energy (MOTIE) and Korea Chamber of Commerce and Industry (KCCI).
He was nominated for the 'CEO with a sustainable business model' award in 2019 in an event hosted by the Institute for Industrial Policy Studies and sponsored by the Ministry of SMEs and Startups.
"We plan to make 528.3 billion won in sales in 2020, a much-attainable goal given our new vision of zero tolerance for industrial accidents, faulty manufacturing and corruption," Cho said.
