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◇ Shinkwang Head Office in Gyeonggi-do

Although Shinkwang has maintained the No.1 or 2 position in sales volume as a POSCO designated stainless steel coil center, the former parent company Samsun Logics entered court administration twice in 2009 and 2015, and its been suffering from various rumors such as financial instability and sales. However, Shinkwang was incorporated into SM Group as of December 8th when Korea Shipping, the largest shareholder of its parent company Samsun Logics (presently SM Korea Shipping), announced the end of the legal management procedure in November of last year. In addition, the new CEO Kim Ki-ho took office on the 24th, solidifying its position as a traditional stronghold in the stainless steel distribution industry, and pledged a new leap forward.

SM (Samramaidas) Group started from the construction industry centered on Samra, the parent company, and through M&A strategy, it has acquired affiliate companies such as Jindeok Industry and Chaoyang, Bexel, Namsun Aluminum, Kyungnam Wool Textile, TK Chemical, Woobang, Korea Shipping, Samsun Logics, SM Line. SM Group has grown into a mid-sized group by taking over them one after another. Some have made observations that Shinkwang will be sold again because SM Group is a company that has grown through M&A, but Shinkwang dismissed the possibility of sales.

Merger with SM Holdings, a holding company in SM Group, is underway for the end of June 

Shinkwang is planning to merge with SM Holdings, a holding company of SM Group, starting in late June. SM Holdings owns eight subsidiaries, including Hiplus and Backcell. If SM Holdings and Shinkwang are officially merged in June, Shinkwang's financial capability is expected to stabilize considerably. In addition, after the merger, Shinkwang's debt to equity ratio is expected to be around 50-60%. Considering that the steel industry's debt-to-equity ratio is typically over 100%, Shinkwang's financial capacity is expected to double.

The fact that Shinkwang's parent company SM Group is pursuing a merger with SM Holdings can be perceived as their effort to keep Shinkwang from the M&A market, and it is interpreted as an intention to expand SM Group's steel business through Shinkwang in the future.

SM Group plans to expand steel business centered around Shinkwang 

Shinkwang's financial capability is only the beginning of their new leap to future. Shinkwang has continued to invest in core facility as a leader in the industry for 23 years. It was the first in the industry to adopt multi-processing such as laser from simple shearing and slitting, and to realize fast delivery and customer service by implementing RFID and latest intranet to establish small lot sales system.

This year, it is planning supplementary investment for factory facilities. It will focus on increasing productivity by concentrating on factory automation system in the future. In addition, it will focus on establishing an efficient nationwide sales network, and at the same time expand Busan and Jungbu office.

With this new start as an SM Group family and the inauguration of the new CEO, Shinkwang will solidify the brand value of Shinkwang within the stainless steel industry, and commit to supplying its customer with prompt services and reasonable price as they have always done.