1. Business Overview
A. Current Status of the Industry
Our company consists of a chemical equipment sector that mainly produces heat exchangers.
(1) Characteristics of the Industry
The chemical equipment manufacturing industry is a type of PLANT (refinery, chemical) equipment industry and is closely related to facility investments in the domestic and international petrochemical industries. In the case of the plant industry, it is led by large EPC (Engineering Procurement Construction) companies, and chemical equipment is generally ordered through leading domestic and international engineering companies, and products are manufactured through a custom design for each project. Therefore, in order to ensure smooth project progress, the ordering party prefers a manufacturer with an existing transaction history, and since the design of equipment for each project is different, there are limited companies that can carry out the business in accordance with customer requirements.
(2) Industry Growth Potential
In the mid- to long-term, demand for energy and petrochemical products is expected to steadily increase due to global GDP growth and population expansion. In particular, oil-producing countries that depend on crude oil exports and have been suffering from growing deficits due to refining and chemically processed finished products are expanding their investments to establish direct processing facilities to secure higher profits and national competitiveness. Accordingly, major countries in the Middle East/Asia/North America are expected to expand investments in new chemical facilities and green hydrogen/green ammonia plants to respond to environmental regulations.
(3) Characteristics of economic fluctuations
The petrochemical industry is closely related to international oil prices, oil consumption/production, and investment plans of major crude oil and gas resource-holding countries, and is also affected by the flow of the petrochemical industry, which has a cyclical nature. In addition, it is closely related to the international situation and the balance of energy demand and supply.
(4) Competitive Factors
Due to the nature of the industry based on steel welding, the industry leadership is shifting similarly to the shipbuilding industry. The industry that started in the United States, then moved to Japan and then to Korea, and recently, competitors from China and India, who are emphasizing low labor costs for basic equipment for general steel grades, are emerging.
However, based on our manufacturing experience through technical partnerships with leading licensors for the production of various products, our company has secured high recognition from domestic and foreign customers based on our own development of special equipment, quality improvement and technological advancement, and unconditional compliance with delivery dates, and we are dedicated to discovering new customers and conducting sales activities for existing customers to secure stable sales.
B. Company Status
(1) Business Overview and Business Division
(a) Business Overview
In the case of our chemical equipment division, due to the impact of COVID-19, which has spread worldwide, the stagnant consumer activity has entered a recovery phase and oil prices have recovered to pre-COVID-19 levels, but the business environment has been limited due to the suspension of petrochemical and LNG projects in the CIS region and the withdrawal of business due to the Ukraine/Russia War.
However, investment in petrochemical plants and oil production facilities led by oil-producing countries and investment in large-scale LNG plants due to the LNG supply imbalance caused by the Ukraine/Russia War are becoming active. In addition, due to the nature of the industry, VENDOR registration for end customers and experience in performing similar construction are important factors in selecting a manufacturer, and our company has an advantage over competitors in these requirements, and based on this, we are actively conducting sales activities to win orders.
In addition to recently winning orders through EPC, we are also gradually expanding sales activities to win orders directly from end users in each country.
(Me) Classification of business sectors subject to disclosure
The company has indicated (1) as the chemical equipment sector that manufactures heat exchangers, etc. as written in the business overview
(2) Market share
In the case of the petrochemical plant sector (chemical equipment sector), it focuses on overseas markets, and the company's market share is a business linked to the overall plant facilities, so the scale is so vast and statistical data is insufficient that it is difficult to express it in arithmetic, making it impossible to make reasonable statistics, but the company estimates that it maintains a top ranking in Korea. In addition, the company has a solid position in the overseas market through approximately 40 years of business experience and external credibility, and is continuously establishing and promoting an order acquisition strategy through dense communication with existing business partners and discovering new business partners, thereby securing stable business partners as well as securing competitiveness and differentiating efforts from other companies to expand orders in overseas markets.
(3) Organizational chart
Image: Organizational chart
Organizational chart
2. Items to be described by purpose of the general shareholders' meeting
? Election of directors
A. Candidate's name, date of birth, recommender, relationship with largest shareholder, whether outside director candidate, etc.
Candidate's name Date of birth Outside director
Whether a candidate
Audit committee member
Whether directors are elected separately
Relationship with largest shareholder Recommender
Kim Seon-gi 60.07.22 Vice N/A N/A Board of Directors
Elbert Michael Yusley 50.01.20 Vice N/A N/A Board of Directors
Lee Jeong-min 72.04.09 Vice N/A N/A Board of Directors
Yoo Yeong-seon 60.05.20 Female N/A N/A Board of Directors
Total (4)
B. Candidate's main occupation, detailed career, transaction history with the relevant corporation for the past 3 years
Candidate's name Main occupation Detailed career Transaction history with the relevant corporation for the past 3 years
Period Contents
Kim Seon-gi The Coretec Group Inc. Chairman 2024 ~ Present
2023 ~ Present
2020 ~ 2023
2019 ~ 2019 The Coretec Group Inc. Chairman
Zaicell Inc. CEO
President, Feast Global Inc.
Vice Chairman, I-Map Asset Management Co., Ltd. Not applicable
Elbert Michael Usley The Coretec Group Inc. CEO 2024 ~ Present
2009 ~ Present
2010 ~ 2020 The Coretec Group Inc. CEO
Chairman, CalErin Group
International Relations Advisor, San Leon Energy Not applicable
Jeongmin Lee The Coretec Group Inc.
General Manager, Accounting, Human Resources, Organization Management Support 2024 ~ Present
2009 ~ 2024 The Coretec Group Inc. Accounting, Human Resources, Organization Management Support
MI Links Vice President None
Yoo Young-sun CFO Vice President, Hapcheon Food Co., Ltd. 2023 ~ Present
2020 ~ 2023
2018 ~ 2019
2009 ~ 2015 CFO Vice President, Hapcheon Food Co., Ltd.
Samtech Vice President
KH Chemical (now 'Cobon') CEO
Hana Bank General Manager, Finance None
D. Whether the candidate has delinquent taxes, is an executive of an insolvent company, or is disqualified under the law
Candidate Name Whether the candidate has delinquent taxes, is an executive of an insolvent company, or is disqualified under the law
Kim Seon-gi None None None None
Elbert Michael Yusley None None None None
Lee Jeong-min None None None None
Yoo Young-sun None None None None
D. Candidate's Job Performance Plan (Limited to the case of appointment as an outside director)
[Candidate Yoo Young-sun]
1. This candidate is aware of the duties of an outside director under the Commercial Act, such as the duty of care and loyalty, duty of reporting, duty of monitoring, duty of mutual business execution monitoring, duty of non-competition, duty of non-self-dealing, and duty of compliance with corporate secrets, and will strictly comply with them.
2. Based on his diverse experience, he will enhance the diversity of the board of directors and perform his independent duties as an outside director by presenting professional opinions and expressing his opinions in the committees within the board of directors, and while representing the interests of shareholders and society, he will resolve major management issues for the long-term growth of the company and maximizing corporate value.
B. Reasons for the Board of Directors' Recommendation of the Candidate
[Candidate Kim Seon-gi]
The candidate was recommended as a candidate because he is judged to be able to sufficiently perform his duties by enhancing the transparency and soundness of management based on his experience and knowledge.
[Candidate Albert Michael Yousley]
This candidate is expected to perform his role as a director well based on his professionalism, job fairness, and ethical responsibility, and the board of directors has recommended him as a candidate because it is judged that he will continuously contribute to the development of the company.
[Candidate Lee Jeong-min]
The candidate is expected to contribute to the major decision-making necessary for our business and the development of the company based on his professional knowledge, and has been recommended as a candidate.
[Candidate Yoo Yeong-seon]
The candidate is expected to contribute to the improvement of corporate value in the mid- to long-term through his outstanding professionalism and broad insight through his abundant knowledge, and has been recommended as a candidate.
Confirmation
Image: Confirmation Certificate Candidate Kim Seon-gi
Confirmation Certificate Candidate Kim Seon-gi
Image: Confirmation Certificate Albert Michael Yousley Hugo
Confirmation Certificate Albert Michael Yousley Hugo
Image: Confirmation Certificate Candidate Yoo Yeong-seon
Confirmation Certificate Candidate Yoo Yeong-seon
Image: Confirmation Certificate Candidate Lee Jeong-min
Confirmation Certificate Candidate Lee Jeong-min ( 1. Business Overview
A. Current Status of the Industry
Our company consists of a chemical equipment sector that mainly produces heat exchangers.
(1) Characteristics of the Industry
The chemical equipment manufacturing industry is a type of PLANT (refinery, chemical) equipment industry and is closely related to facility investments in the domestic and international petrochemical industries. In the case of the plant industry, it is led by large EPC (Engineering Procurement Construction) companies, and chemical equipment is generally ordered through leading domestic and international engineering companies, and products are manufactured through a custom design for each project. Therefore, in order to ensure smooth project progress, the ordering party prefers a manufacturer with an existing transaction history, and since the design of equipment for each project is different, there are limited companies that can carry out the business in accordance with customer requirements.
(2) Industry Growth Potential
In the mid- to long-term, demand for energy and petrochemical products is expected to steadily increase due to global GDP growth and population expansion. In particular, oil-producing countries that depend on crude oil exports and have been suffering from growing deficits due to refining and chemically processed finished products are expanding their investments to establish direct processing facilities to secure higher profits and national competitiveness. Accordingly, major countries in the Middle East/Asia/North America are expected to expand investments in new chemical facilities and green hydrogen/green ammonia plants to respond to environmental regulations.
(3) Characteristics of economic fluctuations
The petrochemical industry is closely related to international oil prices, oil consumption/production, and investment plans of major crude oil and gas resource-holding countries, and is also affected by the flow of the petrochemical industry, which has a cyclical nature. In addition, it is closely related to the international situation and the balance of energy demand and supply.
(4) Competitive Factors
Due to the nature of the industry based on steel welding, the industry leadership is shifting similarly to the shipbuilding industry. The industry that started in the United States, then moved to Japan and then to Korea, and recently, competitors from China and India, who are emphasizing low labor costs for basic equipment for general steel grades, are emerging.
However, based on our manufacturing experience through technical partnerships with leading licensors for the production of various products, our company has secured high recognition from domestic and foreign customers based on our own development of special equipment, quality improvement and technological advancement, and unconditional compliance with delivery dates, and we are dedicated to discovering new customers and conducting sales activities for existing customers to secure stable sales.
B. Company Status
(1) Business Overview and Business Division
(a) Business Overview
In the case of our chemical equipment division, due to the impact of COVID-19, which has spread worldwide, the stagnant consumer activity has entered a recovery phase and oil prices have recovered to pre-COVID-19 levels, but the business environment has been limited due to the suspension of petrochemical and LNG projects in the CIS region and the withdrawal of business due to the Ukraine/Russia War.
However, investment in petrochemical plants and oil production facilities led by oil-producing countries and investment in large-scale LNG plants due to the LNG supply imbalance caused by the Ukraine/Russia War are becoming active. In addition, due to the nature of the industry, VENDOR registration for end customers and experience in performing similar construction are important factors in selecting a manufacturer, and our company has an advantage over competitors in these requirements, and based on this, we are actively conducting sales activities to win orders.
In addition to recently winning orders through EPC, we are also gradually expanding sales activities to win orders directly from end users in each country.
(Me) Classification of business sectors subject to disclosure
The company has indicated (1) as the chemical equipment sector that manufactures heat exchangers, etc. as written in the business overview
(2) Market share
In the case of the petrochemical plant sector (chemical equipment sector), it focuses on overseas markets, and the company's market share is a business linked to the overall plant facilities, so the scale is so vast and statistical data is insufficient that it is difficult to express it in arithmetic, making it impossible to make reasonable statistics, but the company estimates that it maintains a top ranking in Korea. In addition, the company has a solid position in the overseas market through approximately 40 years of business experience and external credibility, and is continuously establishing and promoting an order acquisition strategy through dense communication with existing business partners and discovering new business partners, thereby securing stable business partners as well as securing competitiveness and differentiating efforts from other companies to expand orders in overseas markets.
(3) Organizational chart
Image: Organizational chart
Organizational chart
2. Items to be described by purpose of the general shareholders' meeting
? Election of directors
A. Candidate's name, date of birth, recommender, relationship with largest shareholder, whether outside director candidate, etc.
Candidate's name Date of birth Outside director
Whether a candidate
Audit committee member
Whether directors are elected separately
Relationship with largest shareholder Recommender
Kim Seon-gi 60.07.22 Vice N/A N/A Board of Directors
Elbert Michael Yusley 50.01.20 Vice N/A N/A Board of Directors
Lee Jeong-min 72.04.09 Vice N/A N/A Board of Directors
Yoo Yeong-seon 60.05.20 Female N/A N/A Board of Directors
Total (4)
B. Candidate's main occupation, detailed career, transaction history with the relevant corporation for the past 3 years
Candidate's name Main occupation Detailed career Transaction history with the relevant corporation for the past 3 years
Period Contents
Kim Seon-gi The Coretec Group Inc. Chairman 2024 ~ Present
2023 ~ Present
2020 ~ 2023
2019 ~ 2019 The Coretec Group Inc. Chairman
Zaicell Inc. CEO
President, Feast Global Inc.
Vice Chairman, I-Map Asset Management Co., Ltd. Not applicable
Elbert Michael Usley The Coretec Group Inc. CEO 2024 ~ Present
2009 ~ Present
2010 ~ 2020 The Coretec Group Inc. CEO
Chairman, CalErin Group
International Relations Advisor, San Leon Energy Not applicable
Jeongmin Lee The Coretec Group Inc.
General Manager, Accounting, Human Resources, Organization Management Support 2024 ~ Present
2009 ~ 2024 The Coretec Group Inc. Accounting, Human Resources, Organization Management Support
MI Links Vice President None
Yoo Young-sun CFO Vice President, Hapcheon Food Co., Ltd. 2023 ~ Present
2020 ~ 2023
2018 ~ 2019
2009 ~ 2015 CFO Vice President, Hapcheon Food Co., Ltd.
Samtech Vice President
KH Chemical (now 'Cobon') CEO
Hana Bank General Manager, Finance None
D. Whether the candidate has delinquent taxes, is an executive of an insolvent company, or is disqualified under the law
Candidate Name Whether the candidate has delinquent taxes, is an executive of an insolvent company, or is disqualified under the law
Kim Seon-gi ( Seon Kee Kim* )None None None None
Elbert Michael Yusley ( Elbert Michael Ussery )None None None None
Lee Jeong-min (Jung Min Lee )None None None None
Yoo Young-sun None None None None
D. Candidate's Job Performance Plan (Limited to the case of appointment as an outside director)
[Candidate Yoo Young-sun]
1. This candidate is aware of the duties of an outside director under the Commercial Act, such as the duty of care and loyalty, duty of reporting, duty of monitoring, duty of mutual business execution monitoring, duty of non-competition, duty of non-self-dealing, and duty of compliance with corporate secrets, and will strictly comply with them.
2. Based on his diverse experience, he will enhance the diversity of the board of directors and perform his independent duties as an outside director by presenting professional opinions and expressing his opinions in the committees within the board of directors, and while representing the interests of shareholders and society, he will resolve major management issues for the long-term growth of the company and maximizing corporate value.
B. Reasons for the Board of Directors' Recommendation of the Candidate
[Candidate Kim Seon-gi]
The candidate was recommended as a candidate because he is judged to be able to sufficiently perform his duties by enhancing the transparency and soundness of management based on his experience and knowledge.
[Candidate Albert Michael Yousley]
This candidate is expected to perform his role as a director well based on his professionalism, job fairness, and ethical responsibility, and the board of directors has recommended him as a candidate because it is judged that he will continuously contribute to the development of the company.
[Candidate Lee Jeong-min]
The candidate is expected to contribute to the major decision-making necessary for our business and the development of the company based on his professional knowledge, and has been recommended as a candidate.
[Candidate Yoo Yeong-seon]
The candidate is expected to contribute to the improvement of corporate value in the mid- to long-term through his outstanding professionalism and broad insight through his abundant knowledge, and has been recommended as a candidate.
Confirmation
Image: Confirmation Certificate Candidate Kim Seon-gi ( Seon Kee Kim)
Confirmation Certificate Candidate Kim Seon-gi
Image: Confirmation Certificate Albert Michael Yousley Hugo( Elbert Michael Ussery )
Confirmation Certificate Albert Michael Yousley Hugo
Image: Confirmation Certificate Candidate Yoo Yeong-seon
Confirmation Certificate Candidate Yoo Yeong-seon
Image: Confirmation Certificate Candidate Lee Jeong-min ( Jung Min Lee
Confirmation Certificate Candidate Lee Jeong-min (Jung Min Lee)
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