Kim Jae-ik, CEO of KG Chemical, is establishing new growth avenues in global eco-friendly agriculture and energy infrastructure for a company that has been a staple in the fertilizer and chemical industry for over 70 years.
Founded in 1954, KG Chemical is the first private fertilizer company in South Korea. The company currently produces basic chemical products, including fertilizers, eco-friendly agricultural materials, concrete additives, water treatment agents, and urea for vehicles.
Recognizing that sustained growth is challenging in the mature domestic fertilizer market, Kim is accelerating efforts to explore overseas markets. The company is implementing strategies tailored to the agricultural environments and crop characteristics of various countries, supplying organic fertilizers to Vietnam, microbial fertilizers to Cambodia, and specialized fertilizers for palm farms in Indonesia.
KG Chemical has achieved an average annual growth of 108% in its overseas fertilizer business and aims to increase the share of foreign sales to 50% by 2030. The company plans to go beyond simple exports by engaging in local demonstrations, technical sales, and distribution network establishment, with potential plans to set up local production bases once volumes reach a certain level.
Another new venture being developed by Kim is the eco-friendly fuel tank terminal project utilizing the Ulsan plant. KG Chemical plans to gradually build storage infrastructure with a capacity of up to 200,000㎘ to secure stable rental income, linking it with KG Eco Solutions' bio-ship fuel business.
The company is also pursuing automation of aging production processes and a transition to AI. Starting with AI training for employees, KG Chemical plans to accumulate data by process and use it to enhance production efficiency and safety management.
Kim envisions KG Chemical's future as a company that connects traditional fertilizer production with eco-friendly agriculture, chemical materials, and energy storage and logistics infrastructure. This strategy aims to maintain quality and cost competitiveness in traditional manufacturing while securing new revenue sources in overseas and new business sectors, creating a resilient business structure against economic fluctuations.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.