2004 Value Driver

DOOSAN 2004 Annual Report
Doosan Tower, 18-12, Euljiro 6-ga,
Jung-gu, Seoul, Korea
Phone: 82-2-3398-1081~5
http://www.doosan.com
DOOSAN 2004 Annual Report
Doosan Tower, 18-12, Euljiro 6-ga,
Jung-gu, Seoul, Korea
Phone: 82-2-3398-1081~5
http://www.doosan.com
Boasting 108 years of history behind it, DOOSAN is the oldest and also certainly one of the most pivotal
members of Korea's corporate world, standing behind the growth of the national economy. No less importantly,
DOOSAN is the first Korean corporation to engage restructuring initiatives. Under a medium to long-term
restructuring plan implemented in three progressive stages, we effected mergers between our affiliates including
closing down of underperforming ones, and liquidated shares and properties. In result, our debt to equity ratio in
2003 was drastically reduced to 185% and our ROIC (Return on Investment Capital) was dramatically improved to
10%. Moreover, our realigned business portfolio now centered on industrial goods, a product category holding
a tremendous growth potential, and on technology-intensive products, is leveraging our global competitiveness.
Contents
02
Profile
04
Chairman
Address
06
DOOSAN
Version of a Competent Employee
08
DOOSAN
Open Management
10
DOOSAN Business Scope
12
DOOSAN Affiliates
36
Social Contributions
38
Network of Branches in Korea
40
Overseas Network of Branches
42
History
44
Financial Summary
As for our consumer goods business, we are stepping up our efforts to further empower our brands and strengthening
core competences in this area. Meanwhile, we are now operating under a new medium to long-term vision, which consists in
shifting focus from the pursuit of quantitative expansion characterizing our past management to a profit-driven management,
which is indeed more conform to the global business standard as well. Accordingly, our goal is securing a place among Korea's
top 10 firms in the size of EBIT (Earnings Before Interest and Taxes) within the next 10 years.
In 2002, DOOSAN drew up a new growth strategy with the emphasis on human growth, making an operative guideline out of
its conviction that growth of business begins with growth of people. As has been well testified by our proactive restructuring
initiatives, DOOSAN is a forward-looking firm, constantly evolving and engaged in a continuous value reform and creation.
DOOSAN, A Global Company Leading Changes and Innovations
DOOSAN
Value Driver
<<< Chairman s Address
Potential of exploring new growth
“
We will maximize our corporate value through global
human resources management and practical
management innovations for fundamental changes and
improved management structure.
”
Dear customers and shareholders,
I sincerely thank you for your continued support and interest in Doosan.
2004 will be an important year for Doosan. We will break away from old business models in order to ensure the
growth, improve the profitability, establish core infrastructures and develop human resources through value drivers,
which are the main objective of mid- to long-term management innovation.
04
05
We have the vision and goal to become one of the top companies in the world in operating profit by the year 2007
based on our management structure that we have been building so hard. In order to achieve the vision and goal, we
have to develop our capacity for future growth with the spirit of‘Change & Build’and secure differentiated
competitive advantages and core capabilities. We must create new growth engines through professional human
resources training, various M&A opportunities and advancement into new growing markets while increasing our
market share dominance and making improvements in our business structure to ensure maximum profits.
To this, I hereby propose three practical goals for us to ensure mid- to long-term growth and profits and achieve our
goal of becoming one of the top companies in the world by 2007.
First, we must ensure growth and profits through a value driver.
It became a very important objective for us to stop making short-term profit and performance improvements that
limit our potential for growth, and develop new businesses and secure core capabilities that can be a focal point for
long-term growth.
Under these circumstances, I felt the need to break away from our old business models and secure mid- to longterm growth and profits by making fundamental changes and structural improvements. And what we are implementing
to put this into practice is management restructuring with value drivers.
The Road to ImprovedPerformance
2004 Value Driver
At the centennial, the Doosan is determined to newly establish the‘Doosan Way’and assure us of a promising future.
We will seek continued progress based on the core values shared by all employees, with a particular focus on selfregulatory innovation. The Doosan Way will be a core factor of our decision-making strategy and behavior. All
Doosan employees are encouraged to be of one mind in their efforts to explore the group’
s new future, and enhance
their individual capabilities under the Doosan Way.
Second, we will develop human resources that can achieve the vision through challenge and innovation.
At Doosan, the most valued employee is the one who faces challenges to bring results with performance ethics. In
other words, we are looking for those with high goals who achieve the goals with a pioneering spirit and global vision.
Based on‘voluntary cooperation’, He or she must also be an open-minded person with innovative leadership,
flexible mind, transparency and the highest level of ethics. An open-minded person who's fair and performance
oriented can adapt to diversity, think freely and absorb new things better than others. Lastly, we need professionals
with global capacity who can bring us to a new level. It’
s because only the ones with the highest professional level in
their field of work can step up to a higher level. We at Doosan will continue to develop human resources with the
spirit of challenge and innovative mind and provide them the opportunities to experience and learn more, as well as
the chance to earn the highest salaries.
Third, we must build an image as a transparent company that meets global standards.
With the progress of globalization, there is now a trend of stressing on businesses' social responsibilities such as
environment protection and accounting transparency. Doosan's ethical management began with the principle that
"good products and healthy companies contribute to consumer benefits and social development", which is a principle
that has been established over a period of more than 100 years. Doosan will promote management activities in which
ethical management takes precedence according to transparency and fairness, and build an image as a transparent
company that meets global standards.
Management conditions are forecasted to be more difficult in 2004. However, if we achieve the three practical goals
of developing human resources, increasing productivity/profit and accomplishing transparent management, I'm certain
that Doosan will become one of the healthiest companies in the world that's loved by customers.
I ask for your continued support in 2004 so that we can serve you better as a global company.
Thank you.
Yong-Oh, Park
Chairman & CEO, Doosan Corporation
2004 DOOSAN AR
Value Driver
In addition, DOOSAN emphasize performance ethics, which is an
attitude to put forth efforts continuously to improve our goals. Our
goals adjust so that they are always higher than the previous one.
DOOSAN’s
Version Of
a Competent Employee
Human resources are the best assets of DOOSAN
“Talented human resources are the backbone of corporate growth.”
Doosan encourages its employees to be team players with an open mindset
and distinctive professionalism, putting the idea into practice that the growth of
a business can only be obtained through the growth of its employees. In the
21st century, knowledge and technology are the most important factors for
corporate competitiveness.
Doosan will continue to train and educate its employees as first-rate experts
in their chosen field, through diverse programs and the highest level of
compensation based on individual performance. The Company will encourage
its staff to make endless challenges and innovations with far-reaching goals.
DOOSAN’
s version of a Competent Employee
PE (Performance Ethics)
. Spontaneity
. Affirmative thought
. Active goal establishment
. Ardent propulsion
. Responsibility
. Risk Taking
Voluntary Cooperation
. Ethics
. Transparency
. Team work
. Fairness
Open Mindset
Specificity
. Diversity
. Flexible thought
. International sense
. Creativity
. Industrial, functional,
technical specificity
2004 DOOSAN AR
Value Driver
What does it take to be a global business leader?
a global scope of vision and a global insight
DOOSAN’s
Open Management
Doosan sets the industry example to follow in transparent and ethical
management.
Ethical management has been, and will continue to be, the guiding light
across Doosan's history of 108 years and well into the future.
The group regards operational transparency as the leading factor in its core
values, and has shouldered great responsibility as a member of the
community on the road to becoming a world-class business. We believe
that a business solidly based on transparent operations can manufacture the
finest and most environmental-friendly products, will continue to meet
success through the trust of shareholders, customers, employees and the
local community.
Doosan's aim is to be the best company in the world, winning the trust of
the market through a realization of healthy values based on an open
corporate culture, ethical management, transparency in finance and
accounting and information-based operations.
2004 DOOSAN AR
Value Driver
<<< DOOSAN Business Scope
Branding-The Strongest
Value Driver For New World
Doosan Corporation
Doosan Corporation
Electro-Materials BG
Techpack BG
Biotech BU
Information &
Communication BU
R&D Center
Copper-clad laminate manufacturing
Liquor Export, Import & Export Services, Import & Sales of Home Appliances, Chemical Import & Sales,
Food Sales, Distribution and Dining Facilities, KFC Trading Division Fastfood & Restaurant Division
.
Trading BG
Packaging materials manufacturing
High value-added biotechnology and fine chemicals business
Solution Service, Data Center, ASP
Liquor BG
Soju, Cheongju, Korean traditional liquor, wine and whisky manufacturing
Food BG
Kimchi, Burger King, Animal feed business
Fashion BG
POLO, GUESS, DKNY
10
Doosan DND Co., Ltd.
.POLO BU .GUESS/DK BU
Dictionaries, Encyclopedia CD , Diverse printed products, Printing business
Magazine BU
Magazine publisher (Reader's Digest, Vogue, GQ, Allure, VogueGirl)
Tower BU
Civil and architecture works
.Printing BU
Property lease and service
Food distribution
Marine engines, Diesel power plant facilities
Food Culture BU
Doosan Mecatec Co., Ltd.
.Food Division .Burger King BU .Animal Feed BU
Publishing BG
F&S BU
HSD Engine Co., Ltd.
.
Liquor, Food research and development
Doosan Heavy
Power plant facilities, Industrial plant facilities, Casting and forging, Civil & construction
Industries & Construction Co., Ltd.
Doosan Industrial
Development Co., Ltd.
We will develop new core technologies, concentrate on business that bring in revenue
and put most of our efforts to manage a portfolio consisting of the most suitable businesses.
Doota Vita, Incheon International Airport Food and beverage business, Suboksung, Festina Lente.
Machine tools, chemical process equipment, FA, Plant and Steel bridge manufacturing, PDP Equipment
Organic EL panels manufacturing
Doosan Tower
Corporation
Fashion shopping mall
11
Samhwa Crown & Closure Co., Ltd. Bottle caps manufacturing
Semicontech Corporation
Semiconductor equipment manufacturing
Oricom Inc.
Doosan Enterprise Co., Ltd.
Doosan Bears Inc.
Advertising agency
Doosan Resort Chuncheon Country Club, Chuncheon Condominium
Professional baseball team
Neoplux Capital Co., Ltd. Venture capital, corporate restructuring & Consulting
Novos Inc.
Doosan Motors Corporation
performance innovation consulting service
Importing car Sales
Investment Businesses
Auxiliary Organizations
Oriental Brewery
Yonkang Foundation
Doosan Corn Products Korea
Doosan Credit Union
Nutrapark
Doosan Training Center
Doosan EcoBizNet
2004 DOOSAN AR
Value Driver
We continue to find and develop new business lines
Doosan Corporation
Trading BG
.Trading Division . Fastfood & restaurant Division
Electro-Materials BG
DOOSAN
Affiliates
Overseas Operations
Techpack BG
Liquor BG
Food BG
Fashion BG
Publishing BG
.Food Division . Burger King BU
. Animal feed BU
.POLO BU .GUESS/DK BU
.Printing BU
Magazine BU
Biotech BU
Information & Communication BU
Tower BU
F&S BU
Food Culture BU
R&D Center
Global arena as the home ground for our
technology!
Doosan Heavy Industries & Construction Co., Ltd.
Doosan Industrial Development Co., Ltd.
Doosan achieves goals with global challenges.
HSD Engine Co., Ltd.
Doosan Mecatec Co., Ltd.
Doosan DND Co., Ltd.
Samhwa Crown & Closure Co., Ltd.
Doosan Tower Corporation
Semicontech Corporation
Doosan Motors Corporation
Oricom Inc.
Doosan Enterprise Co., Ltd.
Doosan Bears Inc.
Neoplux Capital Co., Ltd.
Novos Inc.
Oriental Brewery
Doosan Corn Products Korea
Nutrapark
Doosan EcoBizNet
Yonkang Foundation
Doosan Credit Union
Doosan Training Center
2004 DOOSAN AR
Value Driver
Doosan Corporation「Trading BG」
A Global Company that Creates Value
Established in 1896, Doosan Trading BG is the origin of Doosan Group. It was restructured to be a
solid profit-oriented business that concentrates on domestic distribution and international trading.
As a result of the reorganization, Doosan Trading BG is currently involved in various import and
export businesses as well as other trading services. It has been building capabilities on overseas
sourcing, as well as domestic sales and logistics service based on its international networks and
domestic distribution experience. Doosan Trading BG plans to further develop internal capacity
based on its core capabilities and become a global company that creates values by focusing on
developing new growth engines and businesses.
Trading Division
Liquor Export
Doosan 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 40 other countries by utilizing
overseas networks and specialists.
Import & Export Services
Doosan Trading BG provides various services for the import of materials and export of machineries, prints, kimchi,
packing materials as well as raw and auxiliary materials based on its overseas network and specific know-how in trade
finance, customs clearance, transportation and import/export insurance.
Import & Sales of Home Appliances
Doosan Trading BG imports and sells global brands such as Whirlpool appliances and Matsushita's National
System air conditioners by utilizing its overseas sourcing capabilities and nationwide network of after sales service.
Chemical Import & Sales
Doosan Trading BG imports and sells soda ash, silica sand, phenol, TiO2, tung oil, acetone, gum rosin and TEA
utilizing industry-leading know-how on bulk-biz logistics that has been accumulated through many years of
experience, and distribution hubs such as Busan, Ulsan, Gunsan and Incheon as part of its nationwide network.
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15
Food Sales, Distribution and Dining Facilities
Doosan Trading BG has a nationwide distribution network for daily deliveries and an advanced system that enables the
simultaneous delivery of frozen/refrigerated/room temperature products. As a total food service provider, it also
provides imported food stuffs, dining materials and distribution services for fast-food restaurants like KFC, large
restaurants, catering companies, CVS, discount stores and department stores.
Fastfood & restaurant Division
DOOSAN CORPORATION
TRADING BG
KFC has secured its position to be one of the leading brands in the fast food industry by providing better
products and services. By using fresh young chicken, which has been strictly selected from domestic
companies and delivered by a refrigerator van everyday to each stores, KFC offers the unique taste of
Original Recipe based on a blend of 11 herbs and spices that no one could imitate.
In order to control and manage its products and stores, KFC is operating CHAMPS system(Cleanliness,
Hospitality, Accuracy of orders, Maintenance of facilities, Product quality, Speed of Service) in which a
‘Mystery Shopper’points out problems for remedial action. And as part of efforts to meet customer needs,
a number of new products have been developed and a membership card system, which was the first of its
kind in the industry, had been launched. KFC has also adopted the‘STAR Audit’process for tighter
quality control concerning raw materials suppliers.
2004 DOOSAN AR
Value Driver
Doosan Corporation「Electro-Materials BG」
The new leader in the laminate industry
DOOSAN CORPORATION
ELECTRO-MATERIALS BG
TECHPACK BG
16
Electro-Materials BG, founded in 1974, is a world-leading producer of copper-clad laminate(CCL), a
key component of printed circuit boards. The company’
s range of CCLs has been acknowledged
throughout the world for high quality, as indicated by its winning the recognition of KS, UL of the
U.S.,BSI of Britain, CSA of Canada, VDE of Germany, ISO 9001:2000, ISO 14001 , SONY GREEN
PARTNER and QS9000. The products are not only used by high-profile domestic manufactures such as
Samsung and LG, but are 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 home ware to
high-technology industry materials such as Paper Phenolic, Glass Epoxy, Composite, Thin Core, Mass
Lam, Bonding Sheets and Resin Coated Copper Foil. This is largely due to its consistent efforts in
product development to satisfy changing customer needs. No matter when and where our customers
need our services, we will provide a wide range of quality products though our integrated sales and
marketing network and top-notch technical expertise. Under the ultimate flag of customer satisfaction,
Electro-Materials BG 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 3 corporate centers (in Hong
Kong, Singapore, Shanghai) and 3 branches (in USA, China and Germany). Electro-Materials BG is
currently endeavoring to expand its business scope to include a range of electronic materials.
Phenol CCL
Made 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 CCL
Made from glass fiber and epoxy resin, it is a Epoxy CCL product that is used in high-tech
electronic equipment.
Chemical products
We are manufacturing industry glues, coating and optic plastic that are classified as
precision chemical products.
17
Doosan Corporation「Techpack BG」
A manufacturer of general packaging materials and household articles
Doosan Techpack BG was the first Korean company to supply glass bottles in the 1950's. Selling glass
tableware, crystal and PET bottles since the 1980’
s, the BG acquired Doosan in 1998 to begin supplying
metal cans as well. Doosan Techpack BG is leading the bottling/canning industry as the Korea’s largest
supplier of packing materials and household supplies. The BG also has an e-business called parkalife.com.
With the vision of becoming the‘Number One Supplier of Packing Materials in Asia’, Doosan Techpack
BG strives to be the best in Asia through the three strategic objectives of business growth, maximum profit
and human resources development. Doosan Techpack BG will become a company that increases
corporate value through customer satisfaction and contributes to improving the quality of people’
s lives.
2004 DOOSAN AR
Value Driver
Doosan Corporation「Liquor BG」
Top-class total liquor manufacturer
Doosan Liquor BG is the Korea's largest liquor maker that offers a wide range of liquor brands including soju,
cheongju, maesilju, hard liquor, wine and whiskey to customers who are interested in health and smooth
drinks based on innovative methods and R&D activities. Some of the leading brands include San (Mountain)
Soju with smoother taste and new brand image, clean and smooth Cheongha, Seoljungmae made of plums,
popular Korean wine Majuang and Subok, which is a healthy drink often used as cooking wine. Also the
premium whiskey 'Peers Club 18' with differentiated aging process introduced
in 2002 is now a popular drink sold in classy package. Doosan Liquor BG,
recognized for its R&D capacity and quality, currently exports to more than
30 countries. In particular, over four million boxes of soju are sold every year
in Japan since it was first introduced to the country in 1996. Doosan Liquor
BG will strive to become the number one liquor maker in Korea through
continued product development to satisfy changing demands.
Doosan Corporation「Food BG」
Food Division
Chongga Kimchi, the leader of all kimchi brands, acquired the first KS mark in
the domestic Kimchi industry for the first time and is currently exporting kimchi
all over the world including Japan, USA, China, South East Asia and Europe based on its superior
technology, Chongga has earned several patents including the 'deodorized kimchi'. With Chongga's products
having been designated as officially licensed products for the '92 Barcelona Olympics and the 2002 World
Cup, Korean traditional food Kimchi is recognized throughout the world for its high quality and taste.
Chongga Kimchi has acquired the 'World-class Product' license and the 'Korean traditional food' license in
1995 and 2001. Chongga is currently producing more than 18 different Kimchi products including Poggi
Kimchi and Chong-gak Kimchi, in assorted packagings and volumes, while also responding to customers'
diverse demands by producing special regional products such as Ibuk Kimchi(North Korean style Kimchi),
Bite-Size Kimchi. Doosan Food BG strives to offer healthier foods to Koreans by introducing new product
categories including the assorted side dish 'Chan-Pum' and 'Tofu Chongga' made of thick bean broth.
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Burger King BU
It has been 20 years since the first Burger King franchise was opened in 1984 in Seoul Korea.
Dedicated to serving the 'most delicious hamburger', Burger King BU is focusing its efforts in ensuring
quality and customer service. Burger King BU has been increasing the brand value with the sales point
of 'delicious and non-greasy fire broiled whoppers', and was able to establish a premium image
through strict Q.S.C. (Quality Service Cleanness) management. With continued efforts for quality,
hygiene and promotion aimed at maximizing customer satisfaction, Burger King BU was awarded as
the number one in customer satisfaction for four consecutive years.
Animal feed BU
DOOSAN CORPORATION
LIQUOR BG
FOOD BG
Since opening a feed factory in Samjung-dong, Ojung-gu, Bucheon back in 1987, with the implementation
of EP in 1996, the factory now churns out a wide variety of animal feed(powder,pellet,flake,expanding,etc)
via a fully automated process that handles all aspects of manufacture from materials input to end production.
In 2002, Doosan animal feed BU accomplished average monthly sales of 390,000tons and obtained HACCP
(hazard analysis critical control point) certificate by international SGS certification under the Dutch RvA
standard. The business Unit also established a safety system for livestock products its adoption of a Product
Safety system with the cooperation of KSA in 2003.
2004 DOOSAN AR
Value Driver
Doosan Corporation「Fashion BG」
Polo BU
Began with neckties in 1967, Polo became one of the most successful brands in the world.
First introduced in Korea in 1982, there are 191 Polo stores in Korea selling men's wear, women's wear (Blue
Label), boys & girls and Polo Jeans. Since Autumn 2003, Collection and Purple Label are also sold in Korea.
GUESS / DK BU
With excellent brand recognition, GUESS was a sensation from the moment it was launched in Korea.
Since 1989 when it was first introduce in Korea, GUESS jeans have always been one of the top choices
among trendy shoppers. Other GUESS items include men's, women's and children's wear as well as
handbags. DKNY is Donna Karan's bridge line, which generally features younger, more urban looks
than her collection line. With Kids Line launched in 2004, the America's most successful female
designer continues to extend her brand line.
Doosan Corporation「Publishing BG」
Korea s best general publishing company
20
With history of over half a century, Doosan Publishing BG has been the top publisher in Korea. Its
publications include Dong-A Dictionary, Su-Project, Passing Code and textbook supplements for
grade school, middle school and high school students. Doosan Publication BG is also the publisher of
textbooks for middle school and high school equivalent courses and more than 60 types of dictionaries
including 'Standard Korean Dictionary' and 'Prime'. Doosan Publication BG is opening a new horizon
for the Korean book industry with high value added education services such as e-Learning and system
education based on children education, education institutions an contents database.
21
Printing BU
The Printing BU has been engaged in the printing business for over half a century, serving both
domestic and overseas customers. The Unit's priority is to offer the highest quality and prompt
handling of orders. In the division of commercial printing and book publication, the BU is equipped
with 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.
Doosan Corporation「Magazine BU」
Korea s best magazine publisher
Doosan Magazine BU, as a leading publisher in the Korean magazine industry, has been publishing
many reputable magazines.
Its 'Reader's Digest', fashion bible 'VOGUE', men's lifestyle magazine 'GQ' and young fashion magazine
'Vogue Girl' are maintaining their top positions in their respective areas. Doosan Magazine BU is also
responsible for creating the 'well-being trend' in Korea with the successful launching of the well-being
lifestyle magazine 'Allure'. There are online sites for each of the five magazines, which Doosan
Magazine BU created for an organic integration of online and offline contents.
DOOSAN CORPORATION
FASHION BG
PUBLISHING BG
MAGAZINE BU
2004 DOOSAN AR
Value Driver
Doosan Corporation「Biotech BU」
Technological Company in Life Science
Doosan Biotech BU specializes in technological areas based on R&D activities in the field of life
science. The R&D efforts earned the company proprietary technologies and the world's only
patent in LPE, an advance agricultural material. Doosan Biotech BU was the world's second to
secure the technology for mass producer of Sphingolipid, which is used as a cosmetic material
for skin restoration, skin aging and moisturizing. Doosan Biotech BU is also emerging as a leading manufacturer of
phospholipids. In 2001, it received the Best Kids Award by introducing 'Carenic', a cosmetic product for treating
atopic dermatitis that was selected as the 'Hit Product of Second Half of 2003'. In 2003, Doosan Biotech BU also
won the 'Best Well Being Award 2004' by having successfully commercialized 'Specialty' and 'Planew' for treating
acne. Receiving favorable responses from the media and customers, Doosan Biotech BU continues to develop more
cosmetic products for skin problems. Doosan Biotech BU will renew its efforts to develop new, high-performance
and high value added products. Doosan Biotech BU is now recognized for its potentials to become one of the
global manufacturers of phospholipids. In order to achieve the vision of becoming a "World's Leading Biotech
Company for Health & Beauty", Doosan Biotech BU promises to make best efforts in research and development.
Doosan Corporation「Information & Communication BU」
First established as Dongyang Computer Technology in the 1970s, the company survived the soaring wave of
informationalization and business environment changes to emerge reborn as Doosan Information &
Communication. In its current incarnation, Doosan Information & Communication is a newly organized total
solution provider that assures customer satisfaction by offering a full range of software consulting and engineering
services based on its 20 years of experience and know-how in the areas of information and communication. With
the ultimate goal of realizing 'total customer satisfaction', the Doosan Information & Communication BU promises
to always listen to customers in order to establish a 'Positive', 'Passionate' and 'Professional' corporate culture and
become a leading total service provider of the 21st century information society that we can all take pride in.
Doosan Corporation「Tower BU」
22
Doosan Tower BU is in charge of leasing offices and retail outlets in the 34-floor Doosan Tower Building (7
basement floors), which was first opened in December 1998. The Business Unit also manages a 2.4 million
pyeong pasture and salt field.
23
Doosan Corporation「Food & Service BU」
Doosan F&S (Food & Service) BU specializes in food distribution that meets customer needs as a new
business leader in the food distribution market with high growth potentials. Along with food items, it also
provides differentiated and high quality customer services such as consulting and headhunting services for
restaurant management. Implementing new methods to underdeveloped food distribution markets, Doosan
F&S BU is becoming a leader in the next-generation distribution market.
Doosan Corporation「R&D Center」
DOOSAN CORPORATION
BIOTECH BU
INFORMATION & COMMUNICATION BU
TOWER BU
F&S BU
R&D CENTER
Established in June 2002, the Doosan R&D Center is an independent research institute that aims to create a
new global food culture 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 shaped into an organization that can make practical
contributions to each business area, rather than simply conducting theoretical research activities. At the same
time, with its continued development of advanced researchers and technologies, the Center is playing the
role of Doosan Group's growth engine by creating innovative new products that can thrive in the market.
2004 DOOSAN AR
Value Driver
DOOSAN
HEAVY INDUSTRIES &
CONSTRUCTION CO., LTD.
Doosan Heavy Industries & Construction Co., Ltd.
Becoming the Global No.1 Heavy Industries Company
Last year, Doosan Heavy Industries & Construction focused on local marketing, entering new markets and
winning new orders despite stagnant domestic and overseas plant markets, and succeeded in winning the 240
million euro MAPNA project in the Middle East and the US$ 90 million Rehab Combined Cycle Power Plant
project in Jordan.
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25
Doosan Heavy Industries & Construction has the largest market share in HRSGs (Heat Recovery Steam
Generators) as well as in desalination plants. Other achievements include winning the Taean Thermal Power
Plant Units 7 & 8 and Dangjin Thermal Power Plant Units 7 & 8 contracts.
Last year, Doosan Heavy Industries & Construction recorded 2 trillion 800 billion won in orders, 2 trillion
67.7 billion won in sales and 27.2 billion won in net profit. Doosan Heavy Industries & Construction's orderson-hand at the end of 2003 amounted to a total of more than 6 trillion 800 billion won. Doosan Heavy
Industries & Construction plans to significantly increase the number of orders through continued management
improvement and the implementation of advanced management solutions such as ERP. In order to achieve
the goal of becoming the 'No.1 Global Company' within this year, Doosan Heavy Industries & Construction
will continue to implement the four core strategies to △maximize operational efficiency △increase sales &
marketing capacity △develop proprietary technologies △optimize business portfolio.
Doosan Heavy Industries & Construction plans to achieve this year's goal of 4 trillion 185.9 billion won in
orders, 2 trillion 560.6 billion won in sales and 162.8 billion won in net profit by participating in the post-war
restoration projects in Iraq and overseas plant markets including the desalination projects in the Middle East.
In particular, this year will be the starting point for Doosan to achieve the mid-term goal of 5 trillion 200
billion won in orders, 4 trillion 600 billion won in sales and 10.6% operating profit by the year 2008.
Since the privatization in 2001, Doosan Heavy Industries & Construction has been implementing pay-forperformance programs and profit-oriented management initiatives. Doosan Heavy Industries & Construction
has been making continuous efforts in management improvement by implementing transition programs and
strengthening its core business areas through 'selection and focus' on power and desalination.
This year, Doosan Heavy Industries & Construction will turn its attention to the development of proprietary
designs for AE such as power and desalination plants, with which to further improve the competitiveness by
gaining global competitiveness in many different areas as in desalination and HRSG.
2004 DOOSAN AR
Value Driver
Fujairah Desalination Plants (62.5 MIGD - MSF / 37.5 MIGD - RO / 660MW , U.A.E)
Doosan Industrial Development Co., Ltd.
DOOSAN INDUSTRIAL
DEVELOPMENT CO., LTD.
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 Industrial Development has a new blueprint to create a new construction culture for the 21st
century. Based on our unrivalled core capabilities, we are committed to becoming a leader in our
industry that secures sound profits and high added value by achieving our ultimate aim - customer
satisfaction through quality and service innovations.
Since beginning operations in the 1960s, Doosan Industrial Development has accumulated in widerange experiences in the architecture, civil engineering and housing construction fields while growing
into a comprehensive construction firm. Leading up to the 1980s, Doosan made a name for itself in
various construction projects undertaken throughout the Middle East - the main stage for Korean
construction companies in the 1980s. In the 1990s, the Company made unprecedented efforts to
increase its international competitiveness by winning ISO 9001 and ISO 14001 certifications.
Doosan Industrial Development is actively participating in diverse construction projects such as
Intelligent Building Systems (IBS), world-class hotels, the Doosan Tower - Doosan's headquarters and
a new mecca for Korea's fashion business, in addition to national highways, subways and high-speed
railroad projects.
26
27
Also, with its project proposal business system, Doosan Industrial Development is elevating its trust in
businesses that require designing and engineering abilities such as civil engineering, Turn-key, housing
development and environmental business. To create and lead a new housing culture in the 21st century,
it has released the unprecedented Apartment「We've」and is earning rave reviews from the customers.
In 2004, Doosan Industrial Development merged with Korea Industrial Development to be reborn as
one of the top ten engineering and construction firms in Korea. The new Company is now advancing
into the ready-mixed concrete, aluminum and petrochemical businesses, and making bold preparations
for another take-off based on the synergistic effects of the merger.
Doosan Industrial Development has a vision of a leader to create the ultimate living space to satisfy its
customers. In the new millennium, supported by its accumulated skills and know-how, it will continue
to actively participate in the diverse areas of architectural and civil engineering, housing construction,
turn-key projects and privately-funded social overhead capital works.
2004 DOOSAN AR
Value Driver
HSD Engine Co., Ltd.
An Engine Maker Striving to Make the World's No.1 Engine
HSD Engine is the world's number one engine maker specializing in marine gensets and diesel engines
for diesel power plants. HSD's line of products includes low- and med-speed 700 to 100,000
horsepower diesel engines for ships. It also has the capacity to build, maintain and repair up to 200MW
diesel power plants. With production lines amounting to an annual capacity of four million
horsepower, HSD Engine is currently the number two in the world in production capacity and market
share. HSD Engine has been building its business value through competitive quality, productivity and
cost based on 6-Sigma strategies and digital management systems for quality engine production.
HSD Engine also invested heavily in R&D to gain technological independence in the areas of
combustion, structure, vibration, Mechatronics and materials. The R&D investment resulted in the
company's producing the world's first environment-friendly electronically controlled marine engines.
HSD Engine is holding its position as a global engine maker based on its 20 years of experience and
know-how as well as high-tech systems and human resources. Now, HSD Engine is dedicated to
become the world's best engine maker that provides the No.1 engines and best services on time.
Doosan Mecatec Co., Ltd.
Challenge to the future technology industry
Doosan Mecatec manufactures and sells globally recognized machine tools, steel bridges and CPE
(Chemical Process Equipment), which holds the world's top market share in its sector. The CPE
business includes initiatives to produce and supply high-precision pressure vessels, heat exchangers,
towers and reactors for fine chemical, petrochemical and nuclear plants. 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
produced under a system of strict quality control, continued technology development and process
innovation.
The CE and EMC certificates obtained by the company verify the quality of these machineries in both
domestic and overseas markets, so that Mecatec's products are currently being exported all over the
world through more than 50 dealers stationed in the U.S., Europe and Asia. Mecatec's technical
competence was demonstrated through its manufacture and export of box girders for expressways and
railroads in 1997, while the company's expertise in steel bridge assembly was widely recognized after
the successful completion of the Gwangan Bridge (suspension bridge) in Busan and the Yeonryuk
Bridge (double-tiered truss bridge with railway) that links to Incheon International Airport. Other
products include robots, factory automation systems, environmental and water plants, and PDP
equipment
28
29
Doosan DND Co., Ltd.
HSD ENGINE CO., LTD.
DOOSAN MECATEC CO., LTD.
DOOSAN DND CO., LTD.
Doosan DND specializes in the development and manufacturing of organic EL panels, which are now
in the spotlight as the next-generation flat display panel. The mass production of organic EL panels is
now possible thanks to Doosan DND's development of the all-new glass board holder that can solve
the problem of sagging organic EL panels, which has been hindering the mass production of organic
EL panels. With the proprietary technology for the mass production of large EL panels, Doosan DND
now has an ambitious goal to become a global company in the organic EL panel market by focusing
on product development for mass production.
2004 DOOSAN AR
Value Driver
Samhwa Crown & Closure Co., Ltd.
Production technologies for bottle caps
Over the past three decades since 1965, Samhwa Crown & Closure Co., Ltd., a bottle cap manufacturer, has
produced plastic caps, ROPP caps as well as crown caps. In addition, it has developed new technology and
facilities such as metal printing and bottle cap machinery that has turned 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 a technological edge and have given it a good reputation in both
the international and domestic markets. Since 1997 it has exported bottle caps and production facilities to 12
countries including Japan, China, Russia, South-East Asian countries as well as to the Coca Cola Company.
The Company as also been accorded the status of an environmentally friendly company as a result of efforts
to harmonize Company needs with environmental safety. Samhwa Crown & Closure Co., Ltd. continues
efforts to develop innovative technology to meet the sophisticated packaging needs of the 21st Century.
Doosan Tower Corporation
One-stop fashion shopping mall
It has been five years since the shopping mall 'Doota' was first opened to great fanfare back in February 1999.
Doota offers a one-stop shopping system that offers consumers a veritable cornucopia of retail choices, with
diverse categories 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 1,400 shops located inside the
mall. Doota has been leading the restructuring push of the domestic shopping industry, and was the first local
mega-complex to adopt a fixed price system and Doota-certified store promotion program while offering a range
of value-added services such as an on-line shopping mall 'doota.com', Doota plus card & Doota gift certificates, A
Designer Shop, The 1st Avenue, Doota Venture Designer Contest, fashion shows and model pageants. Other
accomplishments include the opening of a new-generation designer mall called Dooche Zone and an information
center for foreigners. Doota is also the first shopping center to have implemented advanced managerial systems,
such as the positioning of floor managers on each story of the building. In 2004, Doota completed the remodeling
of the whole building as part of its sound management plan. Doota promises to become a global shopping mall
through differentiated services and globalization aimed at providing advanced fashion and more convenience.
30
31
Semicontech Corporation
A manufacturer of ultra-precision semi-conductor equipment
Semicontech is the pioneering semiconductor system manufacturer behind Korea's first development of CMP
(Chemical Mechanical Polisher), a revolutionary pretreatment system for semiconductors. Semicontech was a
premiere participant in the government's scheme to develop a uniquely Korean CMP, and the first company in the
nation to successfully devise a workable system. The demand for CMP is predicted to rise drastically following the
induction of minute changes to the circuitry of semiconductors. As an emerging provider of CMPs, Semicontech is
concentrating all its efforts on the delivery of total customer satisfaction by developing differentiated methods of
polishing semiconductors, post CMP cleaners, in-line metrology, motor currents, optic EPD and other accessory
systems. Starting with the launch of CMP sales to domestic semiconductor manufacturers this year, Semicontech
plans to construct a mass production system and make its way into overseas markets as well.
SAMHWA CROWN & CLOSURE CO., LTD.
DOOSAN TOWER CORPORATION
SEMICONTECH CORPORATION
DOOSAN MOTORS CORPORATION
Doosan Motors Corporation
Doosan Motors gained a competitive edge by becoming a Honda dealer from May 2004.
Together with Honda, an internationally recognized automaker known for its reliable technology and
customer services, Doosan Motors will play a leading role in the import of foreign cars based on its
accumulated know-how and professional human resources.
2004 DOOSAN AR
Value Driver
Oricom Inc.
ORICOM INC.
DOOSAN ENTERPRISE CO., LTD.
DOOSAN BEARS INC.
NEOPLUX CAPITAL CO., LTD.
NOVOS INC.
A Brand Management Leader with the Industry's Best Infrastructure
Since established in 1967, Oricom has been credited for some of the most successful advertising campaigns with
advanced and creative marketing strategies for the past 37 years. Its successful advertising campaigns include those for
Yuhan Kimberly, Ace Bed, Dacom, OB Lager, HansolM.com and Daewoo Securities. Oricom's integrated marketing
communication services with various marketing tools are also a part of the company's core capabilities for making
changes in consumer and media marketing of the 21st century.
Oricom was the first in the industry to build a Macintosh network system, and has the industry's largest archive.
Oricom has been playing a vital role in realizing advertising database and technologies with the development of an
independent brand analysis model O'BREX (Oricom Brand Excellence) and media budgeting system OMEX (Oricom
Media Express). Oricom will continue to hold its position as a customer-friendly brand management leader.
Doosan Enterprise Co., Ltd.
Bringing a Higher Quality of Living and Values
Since its establishment in 1987, Doosan Enterprise has built Doosan Resort Chuncheon Country Club and Doosan
Resort Chuncheon Condominium into the best resorts in Gangwon-do. Doosan Enterprise is dedicated to
providing leisure facilities and activities for your changing leisure needs. Doosan Enterprise provides high quality
services for anyone who comes to its golf courses and condominiums. The company also plays its role in regional
societies by offering training courses for young golfers, holding 'Yeongsanhong Festival', visiting orphans' homes
and inviting homeless elders. Doosan Enterprise always tries its best to meet all your leisure and recreation needs.
Doosan Bears Inc.
32
A professional baseball team
33
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 and 2001. As a
Seoul baseball team it has left a deep impression on the minds of its fans, by achieving the remarkable record
of qualifying for post-season games four years in a row (from 1998 to 2001). The Doosan Bears will continue
to play powerful and confident baseball for the fans. Doosan Bears is trying its best to settle a new culture that
can give more than simple sports entertainment by inspiring vitality in the everyday life of common people.
Neoplux Capital Co., Ltd.
Venture capital and corporate restructuring company
Neoplux capital, an investment firm specialized in venture capital and corporate restructuring offers direct
investment and related services. The venture capital unit concentrates its investment on promising start-up
companies in high-tech industries such as semiconductor, materials & components, mobile communications,
multimedia and biotech. In 2002, It organized the first secondary fund in the indsutry, 'Pre-KOSDAQ
Secondary Investment Partnership' which mainly invests in stocks held by venture capitals. Corporate
restructuring unit invests in distressed companies with turnaround potential. By providing financial and
operational restructuring, it improves fundamental company value and achieves higher investment return. It
also provides M&A advisory and turnaround consulting services. As of December 2003, Neoplux Capital
which has KRW 17 billion in capital and 20 specialists has employed funds that total 180 billion won.
2004 DOOSAN AR
Value Driver
Novos Inc.
Nutrapark Inc.
Total Operation Consulting
Safe, Effective Solutions to grow your Agribusiness
NOVOS is a total operation consulting firm specializing in performance improvement and cost reduction.
Through the customized consulting services, NOVOS produces the optimal results for customers by
eliminating the inefficiencies in the whole operation process. NOVOS has so far carried out various projects
for Doosan Group, Dongkuk Steel, Union Steel, Kumho Petrochemical, Borneo and many other major
domestic companies. In the process, NOVOS accumulated know-how in the areas of purchasing and
production and now has the tools best for domestic companies. NOVOS is becoming a reliable business
partner that can strengthen your internal capacity and maximize your value by providing innovative services
based on its unique professional know-how and certified consulting tools such as PSM, TOP and DTC.
A U.S.-based agrobiochemical venture business established in 1996 with Doosan as a majority shareholder,
Nutrapark is a firm commercializing the agricultural produce processing technology using LPE developed by
Dr. Jiwan Palta at Wisconsin University. The technology is used to promote crop growth and maturity and
minimize aging in storage and is expected to drastically change the future of the agrochemical industry. Patent
rights have been applied for and the firm is building a worldwide distribution network and mass-production
system with Doosan's Biotech BU as the main supplier of necessary raw materials. Nutrapark has developed a
technique to use the chemical compound LPE (lysophophatidylethanolamine), in enhancing the storage,
chromaticity and growth of fruits and vegetables. Nutrapark is currently offering services for its LPE spray
schedule, conditions and effects evaluation while proposing viable methods to increase customer value.
... Investment Companies
Doosan EcoBizNet Inc.
Environmental management
Oriental Brewery Co., Ltd.
Pride of Korean Beer
34
35
Oriental Brewery has been a leader and major player in the Korean beer industry for the past 50 years since
its establishment in 1952. At present, its three breweries in Icheon, Kwangju and Cheongwon produce OB,
Cass, Cafri, Budweiser, etc. After Interbrew's acquisition of 95% share in 2001, Oriental Brewery became a
member of global leading breweries. Thanks to Interbrew that recently became the world's largest beer
company by combination with AmBev of Brazil, Oriental Brewery was able to
improve its competitiveness in the Korean and overseas markets by
implementing new and advanced production technologies and marketing and
secure the strategic basis for global business. Oriental Brewery created synergy
effects of having two strong brands after taking over Cass in 1999, and went on
to introduce 'New OB' in April 2003 and received good responses from the
market through innovative products, marketing and promotional campaigns. In
November of the same year, Oriental Brewery became the center of attention
by introducing the Korea's first large volume plastic bottled beer, OB Q-Pack..
Doosan Corn Products Korea, Inc.
Doosan Corn Products Korea was jointly established by Doosan Food BG and CPI (Corn Products
International), the world's third largest corn production company based in Illinois, USA. Since its
establishment in December 1999, Doosan Corn Products Korea has been successful in securing an
advantageous position in domestic and overseas markets by combining Doosan's management capabilities
and CPI's advanced corn processing lines. Doosan Corn Products Korea currently has an annual corn
grinding capacity of 530,000 tons, and two factories in Icheon and Incheon truck out massive quantities of
starch, molasses and oligosaccharide each day. By supplying starch products to the domestic populace, the
company is contributing to the improvement of public health and the vital development of the food, paper
and fiber industries. Doosan Corn Products Korea was the first domestic company to obtain the KS Mark for
molasses and high fructose, and these products were also certified by the ISO 9002 standard in 2001.
Doosan Corn Products Korea obtained the ISO 14001 certification in April 2003 for its superior quality
control and environmental friendliness.
Established in 2000, Doosan EcoBizNet is a spin-off of Doosan Group's Environment Center with a specific
mandate to combine environmental management and technology. The company is currently providing a gamut of
environmental consulting services, including business environment analysis, audits, policy, reliability evaluation
systems and information systems, as well as environmental technology services utilizing electrostatic water treatment
and high frequency treatment systems. Its activities also encompass work on the design, diagnosis, operation &
maintenance, improvement and consulting on pollution prevention systems. As for the biotech business, Doosan
EcoBizNet is conducting 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.
... Auxiliary Organizations
Yonkang Foundation
The Yonkang Foundation was established on October 4, 1978 by Doosan Group and admirers of Park Du-byeong
(1910~1973), the founder of Doosan Group. It was founded in compliance with the desire of the 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 social programs by offering total cash donations of 14.4 billion
won. The Foundation is also involved in the development of cultural performance programs and cultural activities
supervised by civilians, and has freely provided the Yonkang Hall for cultural performances since May 1993.
Doosan Credit Union
Doosan Credit Union was the first company union to exceed 100 billion won in capital - a remarkable feat
that it carried out back in September 1994. It is also the only company union to enjoy the scale of a
conglomerate, since all subsidiary companies and employees of Doosan Group are its union members.
Established for the promotion of employee welfare, the union is located in Doosan Tower subbasement.
Doosan Training Center
Ever since it was first opened in 1977, Doosan Training Center has been the heart of manpower training for
the company via an impressive syllabus of educational programs on new corporate culture and performance
improvement. Courses since 1995 have focused on employee training to develop a strategic mindset and
capabilities, thus better enabling workers to secure an advantageous position in the fast-changing global
business environment.
2004 DOOSAN AR
Value Driver
<<< Social Contributions
As a member of the society, Doosan is fulfilling its social responsibilities through various social activities including
social welfare, culture & art, academic support and environmental protection activities.
The Heart
to share and care
36
37
Teachers Academic Travel Overseas
Build Houses of Love
Doosan supports a program to assist teachers to visit sites and remains of Korean historical significance
scattered around China and Japan, helping them feel the spirit of their 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 a total of 14 occasions since 1989.
Doosan participates in the 'Build Houses of Love' campaign sponsored by 'Habitat for Humanity
Korea'. Last year, Doosan built houses and donated them to the flood victims and homeless people in
Gangneung, Gangwon-do and donated money to the 'Former U.S. President Jimmy Carter
Construction Project 2001'.
The Tea of Love Campaign
Doosan Donates EnCyber CD-ROMs and Standard Korean
To give support to military and the police, between 1991 and 2003 Doosan has presented a total of 26
million tea bags to 275 military camps and police stations, and presently makes it a rule to pay yearly
visits to military camps.
Doosan plays a leading role in making contributions to education as it donated 13,100 sets of 'Doosan
EnCyber (Encyclopedia) CD-ROMs worth about 2.8 billion won to the Ministry of Education and
Ministry of National Defense in 1999 and 2000, and Standard Korean Dictionaries worth about 3
billion won to over 10,000 grade, middle and high schools all over Korea.
Research Assistance
Assistance for Neighbors in Need
Doosan provides funding to professors undertaking environmental research. Each year it selects
environment-related research subjects from 10 universities nation-wide, covering such issues as the
atmosphere, waste, and wastewater. Grants up to KRW 10 million per project are provided. So far
Doosan has extended a total of KRW 872 million to 90 professors.
This year, Doosan donated one 5-ton truck and one 3.5-ton truck to 'Beautiful Store' that sells recycled
items to help neighbors in need. Doosan has been an active participant in helping needy families as it has
been raising funds for hungry children and donating the money to the 'Society for Sharing Crumbs of
Love' since 1999.
2004 DOOSAN AR
Value Driver
<<< Network of Branches in Korea
DOOSAN
Doosan Corporation Doosan Tower 18-12, Euljiro 6-ga, Jung-gu, Seoul
Url www.doosan.com
Doosan Heavy Industries &
Construction Co., Ltd.
555, Gwigok-dong, Changwon-City, Gyeongsangnam-do
Tel 055-278-6114
Trading BG
www.whirlpool.co.kr
www.kfckorea.com
Doosan Industrial
Development Co.,Ltd.
105-7, Nonhyeon-dong, Gangnam-gu, Seoul
Tel 02-510-3114
HSD Engine Co., Ltd.
Food BG
Fashion BG
www.wine.co.kr
38
39
Magazine BU
Fax 02-3398-1227
Url www.chongga.com
www.doosanfeed.com
Tel 02-3398-3830
Fax 02-3398-1769
www.guess.com
Tel 02-3398-8800
Fax 02-3398-2670
Url www.dong-a.com
www.encyber.com
www.gqkorea.co.kr
Tel 02-3398-2194
Tel 02-3398-2313
Tel 031-377-7600
Oricom Inc.
Tel 02-3398-0672
Url www.doosan.com
Url www.oricom.com
Fax 02-542-3966
Tel 033-260-1114
10,Jamsil 1 -dong, Songpa-gu, Seoul
Tel 02-2240-1777
Tel 02-3398-1070
Fax 02-3398-2299
Novos Inc.
Fax 02-3398-2299
Tel 02-545-0119
Url www.neoplux.com
Fax 02-3398-1071
Url www.novos.co.kr
Fax 02-738-0999
Doosan Motors Corporation 72, Cheongdam-dong Gangnam-gu, Seoul
Fax 031-260-1170
Url www.doosanbears.com
Fax 02-2240-1788
16th Floor, Korea First Bank B/D, 100, Gongpyeong-dong, Jongno-gu, Seoul
Tel 02-2003-0900
Url www.doosanresort.co.kr
Fax 033-263-6060
Neoplux Capital Co., Ltd. 15th Floor, Doosan Tower, 18-12, Euljiro 6-ga, Jung-gu, Seoul
Gyeonggi-do Yongin-si Seongbok-dong 39-3
Tel 031-260-1417
Url www.semicontech.co.kr
Fax 031-377-7611
105-7, Nonhyeon-dong, Gangnam-gu, Seoul
Tel 02-510-4244
Url www.doota.com
Fax 02-3398-3028
Semicontech Corporation 587-6, Joong-ri, Dongtan-myeon, Hwaseong-City, Gyeonggi-do
Fax 02-3398-2300
Url www.doosan.com
R&D Center
Tel 02-3398-2386
Url www.samhwa.co.kr
Fax 02-2268-2130
Doosan Tower Corporation Doosan Tower 18-12, Euljiro 6-ga, Jung-gu,Seoul
Doosan Bears Inc.
Url www.doosan.com
Food Culture BU
Doosan Tower 18-12, Euljiro 6-ga, Jung-gu, Seoul
Tel 02-3398-2827
Fax 02-3398-2060
Url www.doota.com
Tel 02-3398-2277
Fax 031-491-2212
Doosan Enterprise Co., Ltd. 1007-1, Jeongjok-ri, Sindong-myeon, Chuncheon, Gangwon-do
Url www.doosanic.co.kr
F&S BU
Samhwa Crown & Closure Co., Ltd.
Url www.doosandnd.com
Fax 031-260-1381
Url blotech.doosan.com
Tower BU
Tel 031-599-2400
Url www.mecatec.com
Fax 02-3398-2795
Doosan DND Co.,Ltd. 397-2, Moknae-Dong, Danwon-Gu, Ansan-City, Kyunggi-do
Gyeonggi-do Yongin-si Seongbok-dong 39-3
Tel 031-260-1114
Information&Communication BU
Tel 02-3398-2799
Url www.bestengine.co.kr
Fax 055-283-7820
Doosan Mecatec Co., Ltd. 17th Floor, Doosan Tower 18-12, Euljiro 6-ga, Jung-gu, Seoul
Fax 02-3398-2667~8
Tel 02-3398-2612
Url www.vogue.co.kr
Biotech BU
www.chungha.com
Tel 02-3398-1217
Url www.polo.com
Publishing BG
www.parkalife.com
Fax 02-3398-1690
Tel 02-3398-1616
Url www.soju.co.kr
Fax 02-540-5221
69-3, Sinchon-dong, Changwon-City, Gyeongsangnam-do
Tel 055-260-6000
Fax 02-2268-2130
Tel 02-3398-2826
Url www.doosantechpack.com
Liquor BG
Url www.dsland.co.kr www.weveapt.co.kr
Fax 02-3398-1979
Tel 02-3398-1970
Url www.dse.co.kr
Techpack BG
Fax 055-264-5551~2
Fax 02-3398-1521
Tel 02-3398-1599
Url www.doosancorp.com
Electro-Materials BG
Url www.doosanheavy.com
Url www.hondacarsdoosan.co.kr
Fax 02-511-3632
2004 DOOSAN AR
Value Driver
<<< Overseas Network of Branches
DOOSAN
Doosan Heavy Industries &
Construction Co.,Ltd.
Doosan Corporation
Overseas Branches
Trading Business Group
▶ Los Angeles
Doosan America Corp.
Wilshire Financial Tower 3600 Wilshire Blvd.
Suite 836 Los Angeles, CA 90010, U.S.A
Phone:1-213-738-7900 Fax:1-213-738-7916
▶ Tokyo
Doosan Japan Co., Ltd.
Room 2411, Mita Kokusai Bldg, 1-4-28,
Mita, Minato-Ku, Tokyo 108-0073, Japan
Phone:81-3-5484-1234 Fax:81-3-5484-1845
▶Los Angeles Liaison Office
▶Doosan Heavy Industries Japan Corp.
Room 2410, Mita Kokusai BLD., 1-4-28,
Mita, Minata-ku, Tokyo , Japan 108-0073
Phone: 81-3-3452-5451~3 Fax: 81-3-3452-5624
Electro-Materials Business Group
(Kuala Lumpur Office)
Letter Box No. 86, 22nd Floor, UBN Tower,
10, Jalan P. Ramlee, 50250 Kuala Lumpur.Malaysia
Phone: 60-3-2026-8890 , 60-10-513-3708
Fax: 60-3-2026-8891
▶ Frankfurt
41
▶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
Los Angeles Liason Office
Wilshire Financial Tower 3600 Wilshire Blvd.
Suite 836 Los Angeles, CA 90010, U.S.A
Phone:1-213-738-7900 Fax:1-213-738-7916
Europe Branch Office
Arabella Center 9th Floor, Lyoner Strasse 44-48,
60528 Frankfurt am Main, Germany
Phone:49-6966-122923 Fax :49-6966-123816
40
▶ Shanghai
Doosan Corp. Shanghai Office
Room 1009, New Town Center, No.83
LoushanGuan Road, Shanghai, China
Phone:86-21-6236-8685
Fax:86-21-6236-8687
▶ San Diego
U.S.A Branch Office
6480 Weathers Place Suite 105,
San Diego, CA 92121, U.S.A
Phone:1-858-554-0533
Fax:1-858-554-0566
▶ Doosan Malaysia Sdn. Bhd.
▶ Shanghai
Shanghai Branch Office
Rm 401 New Town Mansion
55 Loushanguan Road, Shanghai, China
Phone:86-21-6275-4429 Fax :86-21-6275-9974
▶ Singapore
Doosan Electro - Materials Singapore Pte Ltd.
No. 10. Toh Guan Road # 04 - 01B
T T International Tradepark Singapore 608838
Phone:65-6862-6327 Fax :65-6862-6329
▶ Hong Kong
Doosan (H.K.) Ltd.
Suite 3001, Tower 2 , Gaterway Tower 25
Canton Road , Tsimshatsui, Kowloon, Hong Kong
Phone: 852-2317-0163 Fax:852-2317-0231
▶ Shen Zhen
Doosan (H.K.) Ltd.
Room 906, International Culture Building,
Shennan Zhong Road #3039, Shen Zhen
Phone: 86-755-8329-7559
Fax: 86-755-8329-7522
▶ U.S.A
Doosan Machinery America, Inc,
36740 Metro Court Sterling Heights, MI 48312,
U.S.A
Phone : 1-586-268-7120
Fax : 1-586-268-7127
20 International Drive
Windsor, CT 06095, U.S.A.
Phone: 1-860-731-6482/ 6479
Fax: 1-860-731-6478
Doosan Machinery Europe
Albertistrasse, 16, 78056, VS-Schwenningen,
Germany
Phone :49-7720-9954-710 ~ 3
Fax : 49-7720-9954-700
▶ China
Shanghai Technical Center
Shanghai Dynasty Business Center
Room 512, No 457, Wulumuqi Road (N)
Jingan district Shanghai, P.R, China
Phone : 86-21-6249-3901
Fax : 86-21-6249-1908
Al Ghaith Tower 5th Floor, Room 508, Hamdan
Street, P.O. Box 27767, Abu Dhabi, U.A.E
Phone: 971-2-627-6273
Fax: 971-2-627-6274
▶ Schenectady Office
Room 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
▶ Frankfurt Office
Arabella Center 4th Floor, Lyoner Strasse 44-48,
60528 Frankfurt am Main, Germany
Phone: 49-69-69-50040
Fax: 49-69-69-5004-10
▶ Riyadh Office
P.O. Box 9656, Riyadh 11423, SaudiArabia
Phone: 966-1-419-1920/0397 , 966-1-215-0283
Fax: 966-1-419-1995
Major Subsidiaries
▶CHICO (Ceylon Heavy Industries
& Construction Co., Ltd.)
▶HANVICO(Han-VietHeavyIndustry
&ConstructionCorp.)
▶ Germany
▶ Abu Dhabi Office
▶ Taipei Office
704, No. 51, Keelung Road Sec. 2, Taipei,
Taiwan, Republic of China
Phone: 886-2-2739-2255 (ARS)
Fax: 886-2-2739-2266
▶Windsor Office
Oruwala Athurugiriya, Sri Lanka
Phone: 94-114-440031~2 Fax: 94-114-440030
Doosan Mecatec co., Ltd.
▶ Beijing Office
RM 1904, Landmark Bldg.,
8 North Dongsanhuan Road,
Chaoyang District, Beijing 100004, China
Phone: 86-10-6590-0924/0109
Fax: 86-10-6590-0991
933 Ton Duc Thang Street, Hai Phong,
Vietnam
Phone: 84-31-712708~711
Fax: 84-31-712714~5
▶ HFControls Corporation
16650, Westgrove Drive, #500 Addsion,
Texas 75001, USA
Phone: 1-972-367-4657, 4626
Fax: 1-972-367-4689 / 4699
▶ HPL (Hanjung Power Ltd.)
P.O. Box 2803, Boroko, NCD Papua New
Guinea Randy 675-321-1532
Phone: 675-320-0529
Fax: 675-321-2984
▶PHS(Perak-HanjoongSimenSdn.Bhd.)
Batu 14, 33700 Padang Rengas
in the State of Perak, Malaysia
Phone: 60-5-759-6000/ 60-5-758-4409
Fax: 60-5-758-4313
▶PT. Doosan Indonesia
Jl. Raya Soekarno-Hatta Km.11, 5 Srengsem,
Panjang, Bandar, Lampung, Sumatera,
Indonesia
Phone: 62-721-32288
Jakarta: 62-21-837-93066
Fax: 62-721-33216
Jakarta: 62-21-837-93061
2004 DOOSAN AR
Value Driver
<<< Doosan s 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 must be 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 major companies of the 21st century. These carefully modulated changes in business structure and the challenging
spirit of the Doosan family will work to overcome present difficulties just as they have in the past, making Doosan the vibrant entity it is today.
Boasting 108 years of
historybehindit,DOOSANis...
42
43
1896~1946
1950~1969
1970~1979
1980~1995
1996~
Era of new businesses
Time to establish a modern
management system
Time for expansion and
development
Time for the harmony of
preservation and
Continued
advancement
Doosan's history started in 1896 as a tiny
store in Baeogae, Seoul, owned by Park
Seung-jik.
The opening of Doosan Store in 1946 by
Park Doo-byung, the successor to Park
Seung-jik, was the inception of
Doosan's modern history. Doosan began
with the goal of creating a new Korea
and writing a new corporate history.
Doosan established OB Beer in 1952 and
moved into foreign trade, thus forming a firm
basis for expansion. In the 1960s, the Group
joined the ranks of leading business groups
with the establishment of Doosan
Construction & Engineering, Doosan Food
& Beverage and Doosan Machinery
Industry.
Park Doo-Byung led the Group's efforts to
create the strong foundations of a
competitive enterprise through modernized
management and diversification of
business, bringing in capable CEOs when
necessary. He showed immense zeal for
developing businesses related to mass
media and culture as well as public service.
Doosan has overcome shocks in the
global oil market, and has made technical
progress by furthering multilateral
cooperation with other international
companies. Recent months have proved
to be a period of strengthening for the
Group's internal structure, as it expanded
and sold off businesses through
extensive M&A activities.
Doosan bolstered its position as an
industry leader focused on consumer
products. Its construction, machinery and
electronics sectors also grew rapidly.
Based on capabilities accumulated since
the 1970s, Doosan Group has succeeded
in making superlative vertical/horizontal
advancement.
Applying more effort to making inroads
into overseas markets, Doosan also
expanded into publishing and advertising
at home in preparation for the 21st
Century.
In the 1990s, Doosan divided its business
sectors into three: information and
distribution, consumer products and
materials-based technology. Its aims in
that era were globalization and to become
a first-rate, hi-tech enterprise. A hundred
years ago, when the nation was just
beginning to open its doors to the outside
world, Doosan started from a corner shop
in Baeogae, Seoul. In the present day, not
content to rest on past success, it
continues to build on its strong position.
With its successful restructuring, Doosan
has turned itself into a specialist in its core
businesses. It is maximizing corporate
value through improvements to its financial
structure and by attracting large-scale
foreign direct investment. Doosan is strong
and flexible and is ready to face future
challenges, supported by the preparations
for the future we have consistently made
over the past 100 years.
......Doosan has been focusing on
professionalization by implementing
positive restructuring plans, while making
drastic improvements to its financial
structure by the securing of a large amount
of foreign funds. The Group also prepared
a growth engine by purchasing Hanjung
(renamed Doosan Heavy Industries &
Construction), and is currently endeavoring
to enhance the level of its technology and
managerial system by promoting the 'New
Start' and 'Change & Build' strategies.
2004 DOOSAN AR
Value Driver
<<< Financial Summary
DOOSAN
2003 Financial Statement
2004 Financial Statement
(Provisional)
(Units : millions of Korean won)
Division
Listed
Company
Company name
45
Total stock holder’s equity
Sales
Operating Income
Company name
2,896,032
632,968
1,923,141
131,398
Doosan Heavy Industries & Construction Co., Ltd.
3,036,927
1,581,944
2,067,673
67,835
Doosan Construction & Engineering Co., Ltd.
1,409,322
195,623
1,153,100
74,340
Korea Industrial Development Co., Ltd.
681,918
503,839
466,916
45,559
Samhwa Crown & Closure Co., Ltd.
104,343
86,353
68,322
8,440
Oricom Inc.
82,126
29,044
45,209
5,782
HSD Engine Co., Ltd.
Total stock holder’s equity
Sales
Operating Income
Doosan Corporation
2,804,036
644,643
2,038,720
150,247
Doosan Heavy Industries & Construction Co., Ltd.
3,143,752
1,753,252
2,560,577
179,109
Doosan Industrial Development Co., Ltd.
1,995,034
603,195
1,348,799
96,281
113,812
93,720
72,123
11,271
94,614
34,567
55,037
6,566
859,742
270,352
925,407
19,296
9,010,990
3,399,729
7,000,663
462,770
Samhwa Crown & Closure Co., Ltd.
Unlisted
Company
Doosan Mecatec Co., Ltd.
Doosan Enterprise Co., Ltd.
Listed
Company
Total Assets
Doosan Mecatec Co., Ltd.
HSD Engine Co., Ltd.
Unlisted
Company
Division
Doosan Corporation
Oricom Inc.
44
Total Assets
(Units : millions of Korean won)
979,521
186,506
890,168
27,944
Doosan Bears Inc.
Doosan Enterprise Co., Ltd.
Doosan Bears Inc.
Total
The others
Total
9, 190,189
3,216,277
6,614,529
361,298
2004 DOOSAN AR
Value Driver