Nonferrous metals conglomerate Poongsan to invest $236 mn

South Korean nonferrous metals conglomerate Poongsan Corp. announced it will invest 313 billion won ($238 million) in facilities to manufacture rechargeable batteries and develop drones. 

Poongsan hosted an investor relations event on July 14 at its Seoul headquarters to reveal its investment plan for this and next year. 

Poongsan said it will invest 312.7 billion won in the defense and copper sectors beginning in 2023.

In the defense sector, the company will invest 168.6 billion won for the development of K9 self-propelled howitzers and drones. 

Among militaries globally, there is growing interest in personal combat drones (PCD), which soldiers can carry in their bags and control with smartphones. 

And amid expectations that sales of materials needed to make electric vehicles will increase, the company has decided to inject 144.1 billion won into expanding facilities for rolled sheets of copper, among others.

Jin Roy Ryu, who has served as Poongsan’s chairman and CEO since 1999, is regarded as one of the most sociable figures in Korea’s business circles. 

Ryu is also active among Washington D.C.'s think tanks: He serves as a trustee for the Center for Strategic and International Studies (CSIS).

Despite Ryu’s active engagement in the corporate sector, the company earned the nickname “The Secluded Corporate” for not engaging enough with the market. 

Analysts say a dearth of information on its profit and investments is the reason behind its lackluster share price, as evidenced by the price-to-earnings (P/E) ratio of 2.98.

At the recent investor relations event, Poongsan announced it will adjust this year’s pre-tax profit goal upward, from the current 160 billion won to 210 billion won. The company explained its profits have risen recently on the back of rising prices of copper products.

Write to Ik-Hwan Kim at lovepen@hankyung.com
Jee Abbey Lee edited this article.