Sungmoon Co., Ltd is a Korean company established in 2009 specializing in ship engine parts and marine environmental systems. They joined the KICOX industrial cluster project to diversify from ship blocks into higher value products like LNG engine components. The project provided over KRW400 million in subsidies for R&D and prototyping, supporting revenue growth of 3660% from 2009-2014 and employment growth of 1675%. Sungmoon now holds patents related to double-pipe technologies and aims to reach KRW30 billion in revenue by 2020 by expanding partnerships and into new business areas like offshore systems.

1. Sungmoon Co., Ltd
Kwang Woo Park
Parallel Session 1.1 : Performance of Outstanding Enterprise Participating in the Cluster Program

3. 01 Company Overview
02 Why we decided
to be in the project
03 Supports
04 Outcomes
05 Vision
Contents

4. Company Overview Company Overview > Introduction
Company
name
CEO
Date of
Establishment
Headcount
Address
Homepage
Contact
SUNGMOON CO., LTD.
Yoon Kyung Soon
Feb 25th 2009
65
105 Sodeung-ro Samho-eup
Youngam-gun Jeollanamdo Korea
Tel : 061) 464 - 9696
Fax: 061) 464 - 9697
http://www.sungmoon.co.kr

5. Company Overview Company Overview > History
May Applied for trademark of FIRE FREE SYSTEM
Exhibited FIRE FREE SYSTEM at Daegu International Fire
Expo 2012
Jun Obtained permits for R&D center Designated as a
promising SME in technology innovation of Jeollanamdo
province
Jul Registered as an WFI supplier (Wartsila / Finland)
Oct Completed Plant No.2
Nov Received the 7th Corporate Sustainable Management
Award (top prize in labor-management relationship category)
Won OHSAS 18001 accreditation
Feb Founded Sungmoon Co., Ltd
May Registered as a partner of Wartsila-
Hyundai Engine
Nov Won ISO 9001 accreditation
Registered as a partner of HAMWORTHY
COMBUSTION (UK)
Jun Moved to larger office building
Oct Opened company R&D center
Dec Won ISO 14001 accreditation
Mar Certified as clean workplace (KOSHA)
Nov Signed an exclusive agency agreement
with KONUTHERM BV (Netherlands)

6. Company Overview Company Overview > History
Apr Complete new office building
Registered as a family company of
Industrial Bank of Korea
Oct Received MOTIE Ministerial Award
on Offshore & Shipbuilding Day
Registered as a supplier of Wartsila Korea
Feb Registered as a partner of STX Engine
Aug Designated as IP star company of
Jeollanamdo province
Jul Completed training center
Nov Signed an exclusive agency agreement with
PROSPERO OY (Finland) Certified by INNOBIZ
Dec Certified by MAINBIZ Registered as a partner of
Engine & Machinery Division of Hyundai Heavy
Industries

7. Company Overview Company Overview > Organization Chart
Corporate
Administrative
Dept.
Purchasing
HR
General
Affairs
Quality & Safety
Dept.
Quality
Safety
Health
Production
Operation Team
Design
Production
Management
Material
Management
Product Dept.
Double Pipe
Manufacturing Team
Piping Manufacturing
Team
R&D Center
Sale Environment
Delivery
Management
Insulation
Manufacturing Team
Painting Team
Processing Team

8. Company Overview Company Overview > Product
Special pipes Registered pipes
Ship engine parts Module Assemblies
Next-generation fire prevention
and control system
Environment system
Special pipes for ME-GI and DF engine KR certified pipe
Engine insulation etc Special pipes for ME-GI and DF engine
Oil control valve, gas supply, oil supply, heating equipment Crush apparatus for vessel, waste sterilization treatment equipment

9. Why we decided to be in the project Why > Context
Year
Daebul National Industrial Complex Relative Importance of Shipbuilding Industry
Output
(KRW100M)
Export
(USD1M)
Employee
(Person)
Output
(KRW100M)
Export
(USD1M)
Employee
(Person)
2010 23,626 896 13,826 10,844 / 72% 343 / 84% 9,063 / 91%
2011 27,006 1,081 14,172 12,787 / 75% 409 / 86% 9,721 / 91%
2012 31,069 1,220 14,270 15,839 / 78% 600 / 86% 9,842 / 89%
2013 29,624 968 12,943 12,406 / 41.9% 360 / 37% 9,059 / 70%
2014 30,166 1,190 12,972 14,308 / 47.4% 272 / 22.9% 8,871 / 68.4%
Focus on the production of block and fittings
Status in Daebul
Industrial Complex
Needed to stop depending on
ship block plant and produce
high-valued products
Funding, facility and technology
were required
Decided to participate
in KICOX project

10. Why we decided to be in the project Why > Context
Stronger control
on marine
environmental
pollution
Forecasted growth of
LNG engine market and chose
to focus on related products
1. Anticipated the compulsory use of double wall pursuant to IGC Code
2. Stricter IMO regulations -> Gradually curb the use of diesel engine
3. Increase of offshore gas production
(28% (2004) → 42%(2030) in total gas production)
4. Forecasted growing demand in LNG market
(Issue in the use of nuclear energy)

11. Support
No. Project Area Descriptions
Total
Expenses
(KRW1000)
Subsidies
(KRW1000)
Year
1
Industrial Cluster
Competitiveness
Enhancement Project
Patent/
Certification
Total marketing
(ABS standards/Fuel Pipe)
2,000 1,000 2010
2
Industrial Cluster
Competitiveness
Enhancement Project
Patent/
Certification
Total marketing
(ABS standards/Fuel Pipe)
1,000 0 2010
3
Industrial Cluster
Competitiveness
Enhancement Project
Prototype
Product manufacturing support project
(Hybrid crush apparatus for vessel)
57,580 40,300 2014
No. Project Area Sub-project Name
Total
Expenses
(KRW1000)
Subsidies
(KRW1000)
Year
1
Industrial Cluster
Competitiveness
Enhancement Project
R&D
Development of double-wall gas pipe for
dual fuel engine
230,000 172,000 2010
2
Industrial Cluster
Competitiveness
Enhancement Project
R&D
Development of double-walled high-
pressure fuel injection pipe
without joint for ship engine
160,000 120,000 2011
 R&D
 Non R&D

12. Outcomes Outcomes > Increased revenue/employment
 Revenue/employment growth
Annual Growth
Category 2010 2011 2012 2013 2014 2009 → 2014 Remark
Revenue 300% 150% 348% 24% -32.4% 3660% Growth in
revenue and
employmentEmployment 150% 150% 68% 55% 9.2% 1675%
Revenue (KRW10M) Employment (person)
Company
R&D center
KICOX
project
HHI partner
Wartsila
partner

13. Outcomes Outcomes > Intellectual property rights
Holds DFDE engine double-pipe related technologies.
Developed high-pressure double pipes, propelling us to be predominant
in Korean market
Two patents on intellectual property
Fuel supply pipe
for vessel engine
Double-pipe for gas supply
and its manufacturing method

14. Vision Vision > Growth strategy
Profit model
Future value
Pair trawler
strategy
Vision 2020
KRW30 billion
in revenues
 Hyundai Heavy
Industries, STX
Engine, Doosan
Engine
 MDT Mitsubishi
Diversification of
partners
 LNG Regas Unit
 Offshore
environment system
 LNG vessel engine
component
Diversification of
businesses

15. SUNGMOON Co., Ltd.