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www.poongsan.co.kr

POONGSAN | ANNUAL REPORT 2008 60-1, 3-GA, CHUNGMURO, CHUNG-GU, SEOUL, KOREA TEL: 82-2-3406-5114 FAX: 82-2-3406-5400

POONGSAN ANNUAL REPORT 2008

ChallengePoongsan overcomes allobstacles tosuccess.

CreatePoongsan generates value ineach of our operations.

ChangePoongsan constantly seeksways to improveour company, our industry, our world.

ConfirmPoongsan consistently checksto ensure total quality in our work.

CommunicatePoongsan communicates openly with our customers, employees, partners, and shareholders.

Poongsan Corporation can, and will, contribute to human progress through our

superior products, employment opportunities, and uncompromising service.MISSION

Poongsan will set the global standard for excellence in everything we do.VISION

03 POONGSAN WAY

04 CHAIRMAN’S MESSAGE

06 PRODUCT INFORMATION

38 COMPANY & FINANCIAL INFORMATION

52 ORGANIZATION & BOARD OF DIRECTORS

TABLE OF CONTENTS

CORE VALUES

04

To Our Valued Customers and Shareholders,

Like many other companies all over the world, Poongsan was not immune to the

unprecedented adversity brought by the worldwide economic recession. In response

to the global crisis, Poongsan made every concerted effort to address the challenges

and difficulties of 2008.

Poongsan Group underwent a structural change in its organization. Poongsan

Holdings Corporation was established on July 1, 2008. Poongsan Corporation,

Poongsan Special Metal, Poongsan Valinox, Poongsan Metal Service and Poongsan

Microtec are all held by this newly established Poongsan Holdings Corporation.

Poongsan Holdings Corporation will also explore new business opportunities and

make strategic decisions for the Group. Poongsan Corporation will focus on building

a competitive global network for defense and non-ferrous metals products. This new

organizational structure will help to improve effective and efficient management and

distribution of resources.

In terms of revenues for the fiscal year 2008, Poongsan Group recorded sales of 3.2

trillion KRW or 2.6 billion USD, a 6.7% increase from the previous year. This was

made possible by the performance of our Defense Products Division which posted 150

million USD in sales of export products, a record for the company.

In an effort to maximize profitability in 2009, Poongsan will concentrate on increasing

its global market share of high value-added products and reducing overhead. We will

also restructure our risk management system in order to efficiently and effectively

respond to unanticipated market changes. Finally, Poongsan will continue to strength-

en global competitiveness through greater investment in research and development.

As Poongsan enters its fifth decade as a company, I would like to express my sincere

gratitude for the encouragement and loyalty of our valued customers and sharehold-

ers. All of us at Poongsan thank you for your unwavering support and trust and prom-

ise to do our utmost to serve you to the best of our ability.

Yours truly,

05

Jin Roy RyuChairman & Chief Executive Officer

Poongsan Corporation

Jin Roy RyuChairman and Chief Executive Officer

Poongsan Corporation

CHAIRMAN’S MESSAGE

COIN BLANKS

FABRICATED NON-FERROUS METAL PRODUCTS

Sheets & Strips

Leadframe Alloys

Pipes, Tubes & Fittings

Rods, Bars & Wires

Alloy Tubes

Titanium & Stainless Steel Tubes

Stainless Steel Strips

Precision Forgings

DEFENSE PRODUCTSMilitary Ammunition

Components of Ammunition

COMMERCIAL AMMUNITION

MACHINERY

RESEARCH & DEVELOPMENT

PRODUCTINFORMATION

08

Over the past forty-one years, Poongsan has earned a reputation as a trusted supplier

of coin blanks to the global market. The company was designated as the Republic of

Korea's sole coin blank manufacturer by the Korea Minting and Security Printing

Corporation in 1970. Poongsan first exported coin blanks to Taiwan in 1973, and since

then has supplied its coin blanks to over 60 countries on 6 continents. As a recognized

participant in the production of Euro coins, Poongsan not only continues to supply coin

blanks to the EU market but also has, in collaboration with major European Mints,

expanded to include Slovenian Euro coin blanks in 2006 and Cyprus Euro coin blanks in

2007. Additionally, in 2008, Poongsan continued its global market expansion with sales

to Brunei, Chile and Venezuela. Today, 36 years after its first export, Poongsan is the

world’s largest coin blank manufacturer, accounting for more than half of the world’s

coin blank trade volume.

Poongsan casts over 50 different types of coin blank materials - from brass, nickel sil-

ver, cupronickel, and aluminum bronze to other special copper alloys. In recent years,

Poongsan has concentrated on meeting the global demand for bi-metal, clad metal and

nordic coin blanks. Poongsan has also expanded its coin blank production to include

stainless steel coin blanks.

In addition to the circulating coins, Poongsan also operates special facilities dedicated

to the production of precious metal coin blanks for commemorative coins and medal-

lions. With its expertise of forty-one years, Poongsan is competitive in the global market

for precious metal blanks. Poongsan has supplied precious metal blanks for a variety of

domestic and international events which include the 1988 Olympic Games, the 2002

FIFA World Soccer Game and the Asia-Pacific Economic Cooperation (APEC) in 2005.

Coin Blanks“One Stop Service”from melting old coin scraps toproducing new coin blanks enables Poongsan to be anundisputed world leader in the coin blank industry.

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A large part of Poongsan’s success in supplying its customers with superior products

in a timely manner lies in its integrated production system. A sophisticated automatic

gauge control system precisely manages the thickness of strips used to produce coin

blanks while simultaneously managing the weight and surface of coin blanks to meet

the particular specifications of each of Poongsan's customers. Similar automated pro-

duction systems are used for each process of melting & casting, rolling, blanking,

testing and packing. Poongsan performs quality tests at every stage to ensure that

every product exceeds the expectations of its customer. Poongsan’s commitment to

quality and service is reflected in the latest technological advances, state-of-the-art

facilities, and the most effective processes that are used in its plants worldwide.

To further enhance Poongsan's efficiency and effectiveness of production and delivery,

Poongsan works closely with a global production network that spans the Americas

and Asia. PMX, Poongsan's affiliate in the United States, manufactures materials used

for minting coins in various countries, including coin blank strips for the dollar coins

in the U.S.. With an annual production capacity of 120,000 tons of copper and copper

alloy strips, PMX has emerged both as a trusted supplier of coinage strips and as an

important supplier of industrial-based material. With a production capacity of 15,000

tons of copper alloy products, Siam Poongsan established in October 2000, is strategi-

cally located to improve Poongsan's ability to supply coin blanks to Thailand and to

other countries in Southeast Asia.

With sophisticated technology and uncompromising dedication to excellence,

Poongsan prides itself on consistent and timely delivery of its products at competitive

prices. Uncompromising focus on superior products, reliable performance and cus-

tomer satisfaction has cultivated strong and loyal relationships between Poongsan

and its customers for over forty-one years. The global networking ability and the

effective “one stop service” approach to production position Poongsan not only to fur-

ther strengthen its global presence and expand into new markets but also to safe-

guard its position as the world leader in the coinage industry.

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Poongsan’s rolled products vary in size ranging from 630mm to9.2mm in width and from 2.4mm to 0.05mm in thickness.

12

Poongsan takes pride in its efficiently and effectively integrated production system that

includes the world's largest shaft furnace, hot mill, cold rolling mill and slitting pro-

cessing station. Housed in Poongsan's Onsan plant, this production system allows for

the manufacture of high quality, competitive products, each of which undergoes rigor-

ous quality inspection using the latest equipments available to ensure accuracy in size

and superior quality both in physical and surface properties. Such detailed attention

from production to quality control results in Poongsan's ability to consistently meet the

specific, individual needs of Poongsan's customers.

Poongsan produces a diverse range of copper and copper alloy sheets and strips for use

across many industries. This includes use in interior and exterior application for both

commercial and residential real estate, as well as use in construction, machinery, auto-

mobile, electrical and electronics, semiconductor, and telecommunications. These

rolled products are available in copper as well as in brass, cupro-nickel, phosphorous

deoxidized copper, phosphor bronze, nickel silver, aluminum bronze, and other high

performance alloys.

In addition to copper and copper alloy products, Poongsan also produces tin-plated

strips, multigauge strips and stainless steel strips. As with rolled products, these strips

are manufactured using state-of-the-art methods to ensure the highest quality prod-

ucts for customers. Poongsan's tin-plated, multigauge, and stainless steel strips boast

uniform plating thickness, superior surface brightness, excellent welding and corro-

sion-resistant property factors and a long-lasting plating layer that resists deteriora-

tion. As a result, they are widely used in switches, connectors, terminals, and various

other electronic parts.

Sheets & Strips

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Using its forty years of experience in fabricated copper, Poongsannow offers new high-tech materials for use in semiconductor leadframes and connectors.

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Having already developed various copper alloys, Poongsan is now offering new copper

alloys - PMC 102 and PMC 102M - that contain nickel, silicon and phosphorus. These alloys

contain the ideal properties required in semiconductor leadframes - superior electrical

and thermal conductivity, high strength and thermal resistance at high temperatures.

Poongsan maintains patents for these alloys in the U.S., Japan and the United Kingdom.

In addition to PMC 102, Poongsan also supplies other copper alloys such as C194, PMC

90, PMC 90 (multi-gauge), C1100 and C1220. The properties of these versatile materials

are also ideally suited for use in leadframes, as well as for transistors, power-transistors

and heat sink components.

In order to ensure the production of high quality leadframe alloys, Poongsan maintains

dedicated production lines equipped with casting furnace, rolling mill, tension leveler,

tension annealer and slitting line at its Onsan plant.

Leadframe Alloys

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With the largest facility in the country, Poongsan is Korea’s leadingcopper tube manufacturer.

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Poongsan produces and supplies to both domestic and international customers various

copper tubes for different purposes ranging from plumbing and housing applications to

ACR tubes for use in air conditioners and refrigerators. Poongsan also produces wrought

copper pressure fittings for plumbing, heating and related mechanical applications.

Poongsan produces copper pipes, tubes and fittings in varying sizes to meet the quality

and precision specified by its customers. Every precaution is taken to deliver products

that exceed the customer's expectations. Such features as a high-performance Tube

Reducer and STD line ensure dimensional accuracy, outstanding physical properties and

surface conditions. At each step of production, technicians also conduct a series of elec-

tromagnetic, pneumatic and other additional tests to guarantee defect-free products.

Copper tubes display several characteristics ideally suited for their multifaceted use.

First, the corrosion resistant property of copper tubes increases the durability of build-

ings. Second, the flexibility of copper tubes better withstands movements of buildings in

general and, in particular, in earthquakes. Third, high thermal conductivity of copper

tubes makes them attractive for water-heating, heating, gas and drainage pipes. Fourth,

unlike most metals, copper does not break easily in low temperatures, making them

ideal for use in temperature related products such as air conditioners and refrigerators.

Finally, the inner-grooved form of certain copper products maximizes energy efficiency,

making them all the more attractive for use in temperature sensitive products.

Poongsan possesses KS, ISO 9001, ANSI/NSF 61, AS 3688 and JIS H3401 certifications

and is committed to manufacturing quality products in accordance with international

standard specifications. At every step, Poongsan emphasizes continuous improvement in

quality and efficiency to satisfy each of its customer’s requirements and deliver the best

products on the market.

Pipes, Tubes & Fittings

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Using a 4,000 ton extruding press, rod blocks and a combined drawing machine, Poongsan produces bars, rods and wires withdiameters that range from 2.0mm to 105mm.

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Poongsan produces a full range of high-quality copper and copper alloy rods, bars, and

wires. In 2006, Poongsan developed and obtained a patent for the production of lead free

brass bars and wires. Bars are widely used in bolts and nuts, valves, various machinery,

electrical parts and accessory components for automobiles and industrial equipments.

Poongsan's free cutting brass bars boast superior welding and cutting capabilities and

are popular for use in nuts and bolts, connectors, and electrical and electronic parts.

Additionally, Poongsan brass wires are used in specialty products such as EDM wires.

Presently, Poongsan is expanding its presence in the high-purity oxygen-free copper

rods market.

Poongsan prides itself in the high quality products that it delivers to its customers. Its

automated production line by product type ensures that the exact specifications

requested by each of its customers is always achieved. Through strict quality control

procedures from casting to chamfering to inspection, Poongsan focuses on quality from

start to finish.

Rods, Bars & Wires

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Poongsan produces a variety of copper alloy tubes well suited for use by both domestic

and international customers in their large-scale industrial facilities. Over the years,

Poongsan has gained international recognition for its technical ability and product quali-

ty. In 1993, Poongsan received ISO 9001 certification for copper alloys, in recognition for

its superior product quality and customer service.

Poongsan supplies copper alloy tubes to large-scale desalination projects around the

world. As a global leader in copper alloy tubes, Poongsan continues to make significant

contributions by supplying superior products to various industries ranging from thermal

and nuclear power stations to seawater desalination, oil refining and shipbuilding.

Alloy Tubes

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Poongsan was a major supplier of copper alloy tubes in Saudi Arabia’s Al-Shoaiba project, the world’s largest desalination plant.

Partnering with Valtimet S.A.S of France, Poongsan supplies defect-free welded titanium and stainless steel tubes to meet the everchanging needs of the most demanding customers throughout the world.

23

Poongsan Valinox, a joint venture established in 2004 with Valtimet S.A.S (France), oper-

ates a tube mill dedicated exclusively to the production of titanium and stainless steel

tubes. Since its inception, Poongsan Valinox has supplied high-quality welded titanium

and stainless steel tubes to domestic and international customers. With state-of-the-art

technology and quality, Poongsan Valinox is an emerging player in the production and

supply of titanium and stainless steel tubes to the global market.

Poongsan Valinox's titanium tubes are lightweight with superior strength and strong

resistance to heat and corrosion. As a result, they are widely used in nuclear power plant,

desalination, chemical and petrochemical refining plants as well as in the shipbuilding

industry. These titanium and stainless steel tubes are subject to a comprehensive quality

assurance system that was refined through years of experience in the manufacturing of

these products. This system is thorough and extensive, overseeing each production stage

from cold roll forming, tungsten inert gas welding, annealing to product shipment. To

further guarantee the specific mechanical and chemical properties, as well as dimension

specifications, requested by its customers, all of Poongsan Valinox's welded titanium and

stainless steel tubes undergo rigorous testing.

In 2007 & 2008 Poongsan Valinox received ISO 9001 and ISO 14001 certifications respec-

tively. These two certifications were awarded in recognition of Poongsan Valinox's com-

mitment to environmental protection and excellence in the production of titanium and

stainless steel tubes. Poongsan Valinox is committed to satisfy the changing needs of the

most demanding customers of titanium and stainless steel tubes the world over.

Titanium &Stainless Steel Tubes

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A long history in metal rolling technology combined with newcapabilities enables Poongsan to produce superior stainless steelstrips.

24

Poongsan's precision slitters, tension leveler, tension annealing furnace and computer

control systems such as Automatic Gauge Controls and Automatic Flatness Control

System all contribute to ensure the superior processing of stainless steel strips for vari-

ous industrial purposes.

As with all of its other products, Poongsan takes pride in its commitment and ability to

meet the specific needs of its customers. The thin-gauge, narrow-width stainless steel

strips that Poongsan produces can be made as thin as 0.05mm and as narrow as 6mm.

Poongsan's superior rolling and heat-treatment technologies yield a range of desired

properties and consistent quality. These Poongsan products satisfy standard specifica-

tions set by KS, JIS, and AISI. Poongsan's stainless steel strips for spring products are

particularly popular and widely used in lightweight, high-strength components such as

switches, relays and CRT's that require strong spring capability.

Stainless Steel Strips

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Through aggressive investment in equipment and technology,Poongsan continues to expand and supply its line of large-scale andprecision-forging products to many different industries rangingfrom shipbuilding and automobiles to high tech, space and aviation.

27

With the completion of the Angang plant in the early 1970's, Poongsan began operating its

own forging facility. Soon thereafter, the Korean government designated Poongsan as a

national precision technology plant and calibration center. Additionally, Poongsan's

Angang plant is recognized globally as an international certification test center.

Over the past four decades, Poongsan has demonstrated that it is a dedicated and dependable

supplier of parts to its customers in various industries. It has diligently and tirelessly invested

in the acquisition and development of technology in the field of precision forging. Poongsan

acquired certification in ISO/TS 16949 and SQ Mark, enabling it to supply parts to the automo-

bile industry. It has also received similar approval to produce and supply parts to the ship-

building industry. Additionally, Poongsan has supplied small scale body parts for military

weapons to the defense industry. Since the incorporation of two impressive hydraulic presses

- 12,000 tons and 6,000 tons, respectively - into its production line in 2004, Angang plant has

had the capacity to produce larger scale products such as aluminum wheels for tanks, and

body and metal parts for warheads, guided missiles and torpedoes. In addition, Poongsan

produces turbine blades, a component used by manufacturers of aircrafts.

Angang plant is fully equipped with a complete quality assurance system required by

domestic and global automobile and shipbuilding manufacturers. To that end, the Angang

plant is organized to maintain independent production systems for different forging product

categories. The plant is equipped with sophisticated and comprehensive test centers to fur-

ther ensure the superior quality of its products. Furthermore, the DEFORM (Design

Environment for Forming) system for forging process design has enabled Poongsan to pro-

vide superior forging products at reduced costs and shorter delivery times to its customers.

Poongsan is committed to ensure a continued supply of quality as well as competitive

products to its customers. Poongsan's R&D is currently focused on enhancing cold and

hot precision forging and various other processing technologies in an effort to develop

and mass produce essential parts for the transportation industry.

Precision Forgings

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With forty years of experience and expertise in utilizing copper andcopper alloy production technologies in the manufacture of defenseproducts, Poongsan is a leader in the production and supply of high-tech precision ammunition to the military worldwide.

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Poongsan operates two defense product plants, one at Dongrae and the other at Angang.

These two plants develop and supply a wide range of small to large caliber ammunition,

ranging from 5.56mm cartridges to eight inch projectiles for howitzers. Poongsan's

defense products include ammunition used in anti-aircraft guns, mortars, howitzers,

tank guns, recoilless guns and naval guns.

The Dongrae and Angang plants employ a vertically integrated production system that

ensures reliable management of the production process from raw material to finished

product and secures superior quality defense ammunition and components.

Furthermore, Poongsan's defense products undergo ISO9000-2000 certified perform-

ance tests and inspections.

Military Ammunition

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In response to the growing market, ammunition components andsemi-finished defense products have become some of Poongsan’sprincipal export items.

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Poongsan manufactures semi-finished products and components used in the production

of ammunition. They include primers, fuses, bullet jacket cups, case cups, discs, cones,

rotating bands, links, tungsten penetrators and shell bodies. Poongsan FNS produces

and supplies fuses for use in naval ammunition, mortar shells and multiple launch rocket

systems. In addition to these components, Poongsan produces chemicals, such as nitro-

cellulose and nitroglycerine, contained in propellants. Today, Poongsan produces and

supplies both domestic and international customers with single-, double- and multiple-

base propellants.

Components ofAmmunition

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Poongsan develops and exports over 40 different types of sporting ammunition.

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Poongsan's commercial ammunition, PMC (Precision Made Cartridges), is widely used

throughout the world for recreational hunting and shooting and has earned a reputation

for excellence in quality.

Poongsan is committed to providing high performance, competitively priced commercial

ammunition to its customers. Poongsan's commercial ammunition plant has a vertically

integrated manufacturing system that allows for strict and precise management of the

production process from raw material to finished cartridges. To further ensure cus-

tomer satisfaction, commercial ammunition undergo stringent quality inspections and

tests equivalent to those that Poongsan's military ammunition is subjected to.

In addition to providing high quality products at competitive prices to customers,

Poongsan is dedicated to developing environmentally friendly ammunition using frangi-

ble projectiles and non-toxic primers.

Commercial Ammunition

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Poongsan builds metal processing machineries and other customizedequipments for the steel, automobile and defense industries.

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In the early 1970's Poongsan's Machinery Business Unit (BU) began as a maintenance

shop for Poongsan Corporation. Over the years, Machinery BU has transformed into a

supplier of machinery and customized equipments. In addition, Machinery BU specializes

in rolling related products - such as annealing, pickling, degreasing, buffing, tin plating,

slitting machineries, scalping lines and rolling oil coolant systems. Machinery BU is also

renowned throughout the industry as the best provider of quality tools, multi gauge

strips, gauges and fixtures.

Machinery BU maintains strong relationships with prominent companies such as Posco

Engineering & Construction, Union Steel, Jindal Stainless, Borgwarner Transmission

Systems, and Samsung Techwin.

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Dedicated to satisfy customer needs, Poongsan remains committed toresearch and development.

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From its inception, Poongsan has aggressively pursued initiatives to enhance technology,

and develop and improve new and existing products. Today, Poongsan continues to

emphasize and invest in research and development of fabricated copper and copper alloy

products used in both the commercial and defense industries. Currently, Poongsan

employs over 150 professionals, 20% of whom hold doctorate degrees, as part of a multi-

disciplinary research staff.

Through its tireless dedication to research and development over the past forty years,

Poongsan now takes pride in its ever expanding intellectual property portfolio. To date,

Poongsan has registered more than 80 patents worldwide that include patents for high

performance alloys such as PMC102M, PMC26 and lead free brass. Poongsan invests and

strategically allocates resources to develop value-added products, optimize manufactur-

ing processes, and invests in products with future growth. To this end, Poongsan actively

recruits and trains core talent, integrates existing technologies with new ones, and

selects and manages projects that meet market and customer demands.

Looking to the future, Poongsan is even more committed to research and development.

While Poongsan has built a result-driven R&D organization that benefits from global net-

working and collaboration among Onsan, Poongsan Special Metal, PMX and Siam

Poongsan research laboratories, it is currently in the process of building the Poongsan

Institute of Industrial Science & Technology Research, Poongsan's corporate global

research center. In the same vein, Poongsan is presently working on developing the next-

generation of high tech materials such as battery terminal products for hybrid electric

vehicles and leadframe materials for LED & semiconductors. As Poongsan's R & D focus-

es on environmentally friendly products, it is equally dedicated to developing environ-

mentally friendly processes for the manufacture of these products.

Research & Development

R &

D

COMPANY INFORMATION

Plants

Overseas Affiliates

Company Highlights

FINANCIAL INFORMATION

ORGANIZATION & BOARD OF DIRECTORS

COMPANY & FINANCIALINFORMATION

40 41

LOCATION : Ulju-gun, Ulsan

PRODUCTS : Copper and copper alloy sheets,

strips, tubes, rods, wires,

raw materials for leadframes,

tin-plated strips and coin blanks

LOCATION : Angang-eup, Gyeongju

PRODUCTS : A complete line of ammunition

for small arms, medium- to

large-caliber arms and sporting

arms

LOCATION : Haeundae-gu, Busan

PRODUCTS : Small arms and sporting

ammunition

⊙ ONSAN PLANT

Poongsan's Onsan Plant began operations in 1980. Since then, Onsan has continually

increased its production output. At present, the plant boasts the world's largest produc-

tion capacity and is unrivaled in product quality. Onsan continues to be dedicated to

efficient production and superior product. To help maximize operational efficiency, the

plant has implemented Poongsan’s ERP system. It has also completed the installation of

a new state-of-the-art shaft furnace to further enhance competitiveness and meet the

rising demand for high-value alloy products. In addition, the plant's casting capacity

for semiconductor leadframe materials has been improved to allow for increased down-

stream production capacity and improved product quality. Furthermore, a tandem mill,

a tension annealing line and a CNC slitter have been installed. In order to meet the spe-

cific demands of its customers with regard to product quality and service, Onsan active-

ly enforces the Six-Sigma Initiative.

⊙ ANGANG PLANT

Poongsan's Angang Plant is a world class general ammunition mill, producing a broad

range of munitions for rifles, pistols, antiaircraft guns, mortars, howitzers, tank guns,

recoilless guns and naval guns. The entire manufacturing process is vertically integrat-

ed beginning with raw materials to finished rounds of ammunition within this single

facility. Poongsan and its Angang Plant have had and continued to have a longstand-

ing, trusted partnership with the Korean military. Recently, the Korean government des-

ignated Angang as an official calibration center in recognition of the plant’s outstand-

ing quality control system.

The Angang Plant also houses a technical research laboratory dedicated to the develop-

ment of advanced technology in ammunition manufacturing. Today, the laboratory is

in the process of developing a powerful series of new tactical and strategic munitions as

part of the Korean government's efforts to boost its national defense.

⊙ DONGRAE PLANT

Poongsan's 340-acre Dongrae Plant is located in the heart of an urban area that is one

of the most popular tourist sites in the summer. For that reason, Poongsan, in coopera-

tion with the local government, manages the plant in a very environmentally conscien-

tious and responsible manner.

Traditionally, the Dongrae Plant has produced a variety of small-caliber, sporting and

hunting ammunition and tracer products. Today, the plant is concentrating on develop-

ing intelligent high-tech ammunition. Dongrae has received its ISO9001, ISO14001 and

OHSAS18001 certifications.

PLANTS

COMPANY INFORMATION

42 43

⊙ PMX INDUSTRIES, INC.

Incorporated in 1989, PMX Industries is a fabricated rolled-copper plant with an annual

production capacity of 120,000 tons of copper and copper alloy strips. PMX Industries

has earned a reputation as an important and reliable supplier of both industrial based

materials and coinage strips.

As PMX looks to broaden its customer base, it continues to focus on producing high-

value materials for electrical and electronic applications. In this effort, PMX works

closely with leading international fabricated copper manufacturers. The ability to man-

ufacture and supply high performance alloys for use in connectors and other circuit

applications to customers in key market segments allows PMX to strategically diversify

its product mix.

PMX is dedicated not only to supplying high quality products but also to delivering

absolute satisfaction and service to our customers. To this end, PMX’s Sales and

Marketing Team works closely with each customer to address specific needs and

requirements. Internally, the Sales and Marketing Team works closely with both the

production and product development departments to address and provide for the

changing needs of our clients.

⊙ POONGSAN (H.K.) LTD.

Recognizing the importance of a distribution base for the Chinese and the Southeast

Asian markets, Poongsan established an affiliate company in Hong Kong. Through this

affiliate, Poongsan continues to explore new markets and increase its export. At pres-

ent, Poongsan Hong Kong also operates its own slitting center in Guangdong, China for

processing rolled copper sheets and strips. This slitting center offers on-site technical

service and prompt delivery to end-users in the region.

⊙ POONGSAN (SHANGHAI) CO., LTD.

Poongsan established an office inside the Shanghai Free Trade Zone in order to gain

access to the Chinese copper market in 2002. Since its inception, Poongsan Shanghai

has steadily grown its sales of high value fabricated copper products to the high-tech

and automotive industries. Poongsan Shanghai also operates its own slitting center to

process rolled products locally. It supplies copper ACR tubes, brass rods and stainless

steel strips to local customers throughout China as well as to U.S. and Japanese compa-

nies with operations in China.

⊙ SIAM POONGSAN METAL CO., LTD.

Established in October 2000, Siam Poongsan Metal is the only manufacturer of rolled

copper and copper alloy products in Southeast Asia. Products manufactured at Siam

Poongsan range from sheets and strips and coin blanks to other copper and copper alloy

products. Siam Poongsan is a major supplier of coin blanks to the Thai government. With

its completely integrated copper and copper alloy production facilities - from melting and

casting to slitting - Siam Poongsan has contributed significantly to the development of

the Southeast Asian region by providing alternative sources of fabricated materials for

OVERSEAS AFFILIATES

COMPANY INFORMATION

LOCATION : Cedar Rapids, Iowa, USA

PRODUCTS : Copper and copper alloy strips,

and strips for coins

LOCATION : Tsimsatsui, Kowloon, Hong Kong

PRODUCTS : Copper and copper alloy sheets

and strips, copper tubes, brass

rods, and stainless steel strips

LOCATION : Waigaoqiao Free Trade Zone,

Shanghai, China

PRODUCTS : Copper and copper alloy sheets

and strips, copper tubes, brass

rods, and stainless steel strips

LOCATION : Laemchabang, Chonburi, Thailand

PRODUCTS : Copper and copper alloy sheets

and strips, coin blanks

key industries. As a result, it has become a recognized and reliable supplier of copper and

copper alloy products not only to Thailand but also to the other nations in the region.

Siam Poongsan is aggressively working to expand its facilities in order to meet the antici-

pated increase in demand for fabricated copper products in Southeast Asia.

⊙ POONGSAN JAPAN CORPORATION

In April 2002 Poongsan Japan Corporation was established in Kawaguchi City, Japan to

address the demanding product specifications and service required by the Japanese

market, and in July 2003 Poongsan Japan established a slitting service center in Aioi

City, Hyogo Prefecture to expand sales volumes in the west side of Japan. Poongsan

Japan processes and sells phosphor bronze, copper, brass and tin-plated strips and

high-value copper rolling products. Through prompt delivery, consistent and reliable

quality assurance, and effective customer service, Poongsan Japan continues to grow its

domestic market share of not only copper rolling products but also copper tubes and

stainless steel strips.

⊙ POONGSAN (M) SDN BHD

Poongsan (M) SDN BHD, which also operates its own slitting center, was established in

November 2001 to promote Poongsan products throughout Malaysia, Singapore and

other ASEAN countries. It sells copper and copper alloy sheets and strips as well as

stainless steel strips, offering its customers reliable quality, on-time delivery and cus-

tomer service.

⊙ POONGSAN AMERICA CORPORATION

Incorporated in 2002, Poongsan America plays a critical role in supplying Poongsan

Corporation with copper and copper alloy scraps, machinery and spare parts, and chem-

icals and other sub-materials. Poongsan America also sells Poongsan products to cus-

tomers outside of Korea. In particular, Poongsan America has been focused on the

North, Central and South American markets.

44 45

COMPANY HIGHLIGHTS

Oct. 1968 Poongsan Metal Corp. founded

Dec. 1969 Bupyung Plant completed

Apr. 1970 Poongsan designated as coin blank producer for the Mint of Korea

Mar. 1973 Angang Ammunition Plant completed

Jul. 1980 Onsan Plant Phase One completed

Jul. 1982 Dongrae Plant completed

Jan. 1983 Precision Dies Manufacturing Shop at Dongrae Plant completed

Aug. 1985 Leadframe Manufacturing Shop at Dongrae Plant completed

Oct. 1988 Onsan Plant Phase Two completed

Mar. 1989 Poongsan Metal Corp. renamed Poongsan Corporation

Apr. 1992 PMX Industries, Inc. in Cedar Rapids, Iowa, U.S.A. completed

Jan. 1994 Quality Standard Certificate ISO 9002 for copper and copper alloy products awarded

Dec. 1996 Quality Standard Certificate ISO 9002 for titanium tubes and stainless steel strips awarded

Dec. 1997 Poongsan Metal Plant in Dongguan, China completed

Dec. 1999 Quality Standard Certificate ISO 9001 and ISO 9002 for defense industry products awarded

Oct. 2000 Siam Poongsan Metal Co., Ltd. established in Thailand

Jun. 2001 PNT Corporation JV established in Ulsan

Dec. 2001 Poongsan (M) SDN BHD established in Johor, Malaysia

Jan. 2002 Poongsan (Shanghai) Co., Ltd. established in China

Apr. 2002 Poongsan Japan Corp. established in Saitama, Japan

Jul. 2002 Poongsan America Corp. established in Los Angeles, California, U.S.A.

Dec. 2003 Environmental Standard Certificate ISO14001 awarded to Poongsan for its copper and copper alloy products

Mar. 2004 Acquisition of fuse and precision machinery parts maker Hyopchin Industrial Co., Ltd.

May 2004 Poongsan Valinox Corporation JV established in Bupyung

Jun. 2004 Angang plant acquires international accreditation as certification and inspection body

Nov. 2004 Poongsan honored with Productivity Innovation Award at National Quality Management Convention

Apr. 2005 Hyopchin Industrial Co., Ltd. renamed Poongsan FNS Co., Ltd.

Oct. 2005 Onsan plant obtains KOSHA18001 (Occupational Safety and Health Management System)

Apr. 2006 Poongsan designated as the first environmentally friendly company among national nonferrous metals industries

Oct. 2006 Poongsan obtains patent for its Lead Free Brass Bars

Feb. 2007 Poongsan Metal Service Corporation established

May 2007 Poongsan honored with Korean System Management Grand Prix Award at International System Certification

Convention

Nov. 2007 Poongsan received Bronze Tower Order of Industrial Service Merit at National Quality Management Competition

Nov. 2007 "$700 Million Export Tower” awarded on the 44th Annual Trade Day

Jul. 2008 Establishment of Poongsan Holdings Corporation

Dec. 2008 Poongsan honored with Korean Ministry of National Defense Award in recognition of its defense product exports

COMPANY INFORMATION

LOCATION : (Head Office) Tokyo, Japan

(Kawaguchi Office) Kawaguchi,

Saitama, Japan (Aioi Branch) Aioi,

Hyogo, Japan

PRODUCTS : Copper and copper alloy sheets

and strips, copper tubes, brass

rods, and stainless steel strips

LOCATION : Kota Kemuning, Shah Alam,

Selangor, Malaysia

PRODUCTS : Copper and copper alloy sheets

and strips, copper tubes, brass

rods, and stainless steel strips

LOCATION : Los Angeles, California, USA

Operating & Net Income(Unit: Million KRW)

128,3

95

144,0

92

-9,9

00

-132,7

15

89,2

28

48,8

40 7

3,5

989

1,4

65

91,4

62

152,1

28

Operating Income

Net Income

■■

▣ Results of Operations

Production and Sales

An unstable market due to the sub-prime mortgage crisis and the subsequent global economic melt-

down resulted in an historically adverse business environment. Despite concerted efforts to counter

the negative economic conditions through stringent cost cutting measures and sales strategies

focused on high value-added products, Poongsan recorded less than satisfactory results. Domestic

sales of copper products was 91,859 M/T while export was 107,513 M/T, a 6.3% and 13.8% decrease

respectively from the previous year. As a result, total sales was 199,372 M/T for year ending 2008.

However, due in large part to increased sales of high value-added products, total sales in KRW of

2,013,180 million for Poongsan Corporation in 2008 recorded a 6.1% increase from 2007. Sales of

product from the Nonferrous Metal Division comprised 78.4% of total sales while that of the Defense

Product Division accounted for the remaining 21.6%.

Operating Income

In 2008, the company’s operating income was 152,128 million KRW, a 106.7% increase from 2007. The

ratio of operating profit to revenue was 7.6%, up 3.7 percentage points from 3.9% in 2007. In 2009,

Poongsan will continue to focus on increasing profitability through sustained cost cutting efforts and

sales of high value-added products.

Net Income

Net loss for 2008 was 132,715 million KRW. The company paid 16,025 million KRW in corporate taxes,

an increase of 8,447 million KRW from the previous year. Net profit ratio decreased from -0.5% in

2007 to -6.6% in 2008.

Capital Expenditure

In 2008, the company recorded 44,404 million KRW in capital expenditures, a 5.5% decrease from

2007.

46 47

Yearly Sales

FINANCIAL INFORMATION

Unit: Million KRW

2nd half Total

20082007 2006 2005 2004

1st half

380,069

517,354

897,423

78,503

29,421

107,924

1,005,347

Domestic

Export

Sub-Total

Domestic

Export

Sub-Total

239,185

440,976

680,161

189,675

137,997

327,672

1,007,833

619,254

958,330

1,577,584

268,178

167,418

435,596

2,013,180

584,930

966,683

1,551,613

258,997

87,384

346,381

1,897,994

561,326

877,486

1,438,812

257,002

54,671

311,673

1,750,485

416,770

628,842

1,045,612

248,806

63,190

311,996

1,357,608

406,506

532,673

939,179

205,987

28,226

234,213

1,173,392

Nonferrous Metal

Defense Product

Total

Operating & Net Income(for 5 years) Unit: Million KRW

Operating Income

Net Income(Loss)

2007

73,598

(9,900)

2006

128,395

144,092

2005

91,465

48,840

2004

89,228

91,462

152,128

(132,715)

83,744

(183,840)

68,384

51,125

2nd half Total

20081st half

2nd half2008

1st half

Capital Expenditure & Depreciation Expense (for 5 years) Unit: Million KRW

Capital Expenditure

Depreciation Expense

2007

46,970

48,039

2006

56,171

53,140

2005

47,661

50,122

2004

64,062

47,646

44,404

45,174

21,095

21,211

23,309

23,963

▣ Financial Position

Asset

The company’s total asset as of December 31, 2008 was 1,563,825 million KRW, a decrease of 4.2%

from the previous year. Current asset in 2008 was 875,661 million KRW, an increase of 24.3% from

2007. This was due to an increase of short-term borrowings in 2008. Non-current asset was a

decrease of 25.9% from 2007.

Liabilities

Total liabilities as of December 31, 2008 was 848,093 million KRW, an increase of 27.1% or 180,970

million KRW from the previous year. Current liabilities was 642,025 million KRW, while non-current

liabilities was 206,068 million KRW, an increase of 46% and a decrease of 9.4% respectively from

2007.

Short-term borrowings for 2008 comprised 49.1% of total current liabilities for an amount of 315,390

million KRW. This represented an increase of 73,278 million KRW from the previous year. Long-term

borrowings of non-current liabilities also increased in 2008 to record an amount of 63,038 million

KRW. The balance from bond issues decreased by 9,974 million KRW to close at 89,682 million KRW.

The debt to equity ratio was 118.5%, an increase of 49.4 percentage points from the previous year.

Through redemption of existing debts and effective inventory management, Poongsan expects to

lower and maintain this ratio below 90%.

Total

Loans & Interest Rates Unit: Million KRW

Loans

Interest Rates(%)

2007

466,864

5.27

2006

451,562

4.95

2005

369,224

4.55

2004

380,959

4.67

2008

551,603

5.89

Loans & Interest Rates(Unit: Million KRW)

Interest Rates

Loans

■■

2004 2005 2006 2007 20082004 2005 2006 2007 2008

5.27%

5.89%

4.67% 4.55%

380,9

59

369,2

24

451,5

62

466,8

64

551,6

03

4.95%

Balance Sheet

Exchange Rate :￦1,257,50=US$1(End of 2008)Exchange Rate : ￦ 938,20=US$1(End of 2007)

Current Assets

Cash and cash equivalents

Trade accounts receivable, net

Inventories

Other current assets

Total Current Assets

Non-Current Assets

Investments

Tangible and intangible assets

Land

Buildings

Structures

Machinery

Others

Others non-current assets

Total Non-Current Assets

Total Assets

Current Liabilities

Trade payables

Short-term borrowings

Other payables

Current portion of long-term liabilities

Other current liabilities

Total Current Liabilities

Long-Term Liabilities

Bonds payable

Long-term borrowings

Provision for retirement and severance benefits

Total Long-Term Liabilities

Total Liabilities

Shareholders' Equity

Capital stock

Capital surplus

Capital adjustments

Accumulated other comprehensive income

Retained earnings

Accumulated Deficit

Total Shareholders' Equity

Total Liabilities and Shareholders' Equity

2007

15,963

234,646

438,985

14,717

704,311

207,537

699,356

354,353

144,138

25,940

112,654

62,271

21,920

928,813

1,633,124

47,622

242,112

10,732

72,798

66,368

439,632

99,656

52,298

75,537

227,491

667,123

166,000

504,178

(64,139)

(27,057)

387,019

-

966,001

1,633,124

2008

150,175

232,202

457,590

35,694

875,661

47,293

613,564

319,930

134,120

24,583

88,320

46,611

27,307

688,164

1,563,825

97,999

315,390

24,130

83,494

121,012

642,025

89,682

63,038

53,348

206,068

848,093

140,122

727,739

(81)

31,792

-

(183,840)

715,732

1,563,825

2008

119,423

184,654

363,889

28,385

696,351

37,608

487,923

254,418

106,656

19,549

70,235

37,065

21,716

547,247

1,243,598

77,932

250,807

19,189

66,396

96,232

510,556

71,318

50,130

42,423

163,871

674,427

111,429

578,719

(64)

25,282

-

(146,195)

569,171

1,243,598

2007

17,015

250,102

467,901

15,686

750,704

221,208

745,423

377,695

153,632

27,649

120,075

66,372

23,364

989,995

1,740,699

50,759

258,060

11,439

77,593

70,740

468,591

106,220

55,743

80,513

242,476

711,067

176,935

537,389

(68,365)

(28,839)

412,512

-

1,029,632

1,740,699

Conversion into Thousandsof United States Dollars

Millions of Korean Won

▣ Non-consolidated Balance Sheet

(Note) These financial statements are made and reported based on Korean GAAP which is revised in 2008.

FINANCIAL INFORMATION

Shareholders' Equity

The ratio of stockholders’ equity to total asset was 45.8% by end of year 2008, a decline of 13.4 per-

centage points from 2007. Total stockholders’ equity was posted at 715,732 million KRW, a decrease

of 250,269 million KRW or 25.9% from the previous year.

* Numbers prior to June 30, 2008 are based on the business performance of Poongsan Corporation before the establish-

ment of Poongsan Holdings Corporation.

48 49

Key Performance Indicators

Stability

Profitability

Activity

Growth

Productivity

Debt Ratio(%)

Net Profit to Sales(%)

Receivables Turnover(%)

Increase in Recurring Profit Over Last Year(%)

Value-Added per Person (Million KRW)

2008

118.5

(0.1)

8.6

(4,925.4)

54

2007

69.1

(0.5)

8.1

(101.2)

114

2006

68.3

8.2

8.4

138.9

133

2005

59.7

3.6

7.8

(33.6)

109

2004

64.0

7.8

7.1

113.7

104

Stock Value Analysis

EPS (Earnings per Share)

EBITDA

Net Assets per Share

2007

(358)

121.6

30,188

Unit

KRW

Billion KRW

KRW

2006

5,152

181.5

31,148

1,865

92.3

30,765

(6,562)

104.0

25,540

2005

1,753

141.6

27,480

2004

3,208

136.9

26,529

2nd half1st half

2008

2004 2005 2006 2007 2008

Debt Ratio

Net Profit to Sales

Receivables Turnover

2004 2005 2006 2007 2008

2004 2005 2006 2007 2008

8.2

%

-0.5

%

-0.1

%

7.8

%

3.6

%

8.4

%

8.1

% 8.6

%

7.1

% 7.8

%

68.3

%

69.1

%

118.5

%

59.7

%

64.0

%

2004 2005 2006 2007 2008

Value-Added per Person (Million KRW)

133

114

54

104

109

Key Performance Indicators

Stock Price Performance

Won Share

FINANCIAL INFORMATION

50 51

Statement of Cash FlowsExchange Rate :￦1,257,50=US$1(End of 2008)Exchange Rate : ￦ 938,20=US$1(End of 2007)

I. Cash Flows from Operating Activities

1.Net income(loss)

2.Addition of expenses of non-cash transactions

3.Deduction of revenues non-cash transactions

4.Changes in assets and liabilities from

operating activities

II. Cash Flows from Investing Activities

1.Cash inflows from investing activities

2.Cash outflows for investing activities

III. Cash Flows from Financing Activities

1.Cash inflows from financing activities

2.Cash outflows for financing activities

IV. Increase(decrease) in Cash equivalents( I+II+III )

V. Cash and Cash equivalents at Beginning

VI. Cash and Cash equivalents at End

2008

215,396

(183,840)

225,668

(24,981)

198,549

(27,754)

132

(27,886)

(54,886)

915,117

(970,003)

132,756

17,419

150,175

2007

64,692

(9,900)

122,289

(14,055)

(33,642)

(45,312)

6,741

(52,053)

(10,450)

4,671,366

(4,681,816)

8,930

7,033

15,963

2008

171,288

(146,195)

179,457

(19,866)

157,892

(22,070)

105

(22,175)

(43,647)

727,727

(771,374)

105,571

13,852

119,423

2007

68,953

(10,552)

130,344

(14,981)

(35,858)

(48,297)

7,185

(55,482)

(11,138)

4,979,073

(4,990,211)

9,518

7,496

17,014

Conversion into Thousandsof United States Dollars

Millions of Korean Won

▣ Non-consolidated Statement of Cash Flows

(Note) These financial statements are made and reported based on Korean GAAP which is revised in 2008.

Income StatementExchange Rate :￦1,257,50=US$1(End of 2008)Exchange Rate : ￦ 938,20=US$1(End of 2007)

Sales

Cost of Goods sold

Gross Profit

Selling and Administrative Expenses

Operating Income

Non-Operating Revenues

Interest income

Gains on foreign currency transaction & translation

Gains on valuations of equity method securities

Gains on derivative transactions

Gains on valuations of derivatives

Others

Non-Operating Expenses

Interest expenses

Losses on foreign currency transaction & translation

Losses on valuation of equity method securities

Losses on derivative transactions

Losses on valuation of derivatives

Others

Income(Loss) Before Income Tax Expenses

Income Tax Expenses

Net Income(Loss)

799,481

719,755

79,726

25,345

54,381

61,327

1,713

14,896

17,586

16,330

6,395

4,407

59,909

11,939

18,446

1,862

11,552

15,311

799

55,799

15,143

40,656

1,007,833

886,550

121,283

37,539

83,744

119,123

2,757

71,484

939

28,889

9,315

5,739

389,724

17,577

92,999

138,049

73,670

59,288

8,141

(186,857)

(3,017)

(183,840)

1,005,347

905,092

100,255

31,871

68,384

77,119

2,154

18,732

22,115

20,535

8,042

5,541

75,336

15,014

23,195

2,342

14,527

19,253

1,005

70,167

19,042

51,125

Total

1,600,939

1,424,765

176,174

55,197

120,977

156,057

3,905

71,743

18,333

39,303

13,802

8,971

369,829

25,917

92,401

111,643

70,136

62,459

7,273

(92,795)

12,744

(105,539)

1st half

20082007 2007

2008

2nd half 1st half 2nd halfTotal

2,013,180

1,791,642

221,538

69,410

152,128

196,242

4,911

90,216

23,054

49,424

17,357

11,280

465,060

32,591

116,194

140,391

88,197

78,541

9,146

(116,690)

16,025

(132,715)

801,458

705,010

96,448

29,852

66,596

94,730

2,192

56,847

747

22,973

7,407

4,564

309,920

13,978

73,955

109,781

58,584

47,148

6,474

(148,594)

(2,399)

(146,195)

1,897,994

1,765,293

132,701

59,103

73,598

64,068

4,058

13,369

8,715

24,016

2,070

11,840

139,988

29,832

12,199

38,794

45,919

10,647

2,597

(2,322)

7,578

(9,900)

2,023,016

1,881,574

141,442

62,996

78,446

68,288

4,325

14,250

9,289

25,598

2,206

12,620

149,209

31,797

13,003

41,349

48,944

11,348

2,768

(2,475)

8,077

(10,552)

Conversion into Thousandsof United States Dollars

Millions of Korean Won

▣ Non-consolidated Income Statement

(Note1) These financial statements are made and reported based on Korean GAAP which is revised in 2008.

(Note2) Numbers prior to June 30, 2008 are based on the business performance of Poongsan Corporation before the establishment of Poongsan Holdings Corporation.

POONGSAN CORPORATION

HEAD OFFICE

60-1, 3-ga, Chungmuro, Chung-gu, SeoulPhone : 82-2-3406-5114Fax : 82-2-3406-5400http://www.poongsan.co.kr

DOMESTIC PLANTS

Onsan Plant611, Daejung-ri, Onsan-eup, Ulju-gun, UlsanPhone : 82-52-231-9114Fax : 82-52-231-9400

Angang Plant2222-2, Sandae-ri, Angang-eup, Gyeongju,GyeongbukPhone : 82-54-760-6114Fax : 82-54-760-6400

Dongrae Plant52, Banyeo 1-dong, Haeundae-gu, BusanPhone : 82-51-520-8114Fax : 82-51-520-8400

OVERSEAS OFFICE

Taiwan officeRM708, 21Century Bldg., No.207 Tun HwaNorth Road, Taipei, TaiwanPhone : 886-2-2545-5311/2Fax : 886-2-2546-0081

DOMESTIC AFFILIATES

Poongsan FNS Corporation57-2, Toyang-ri, Eunjin-myeon, Nonsan,ChungnamPhone : 82-41-740-5500Fax : 82-41-741-7780

PNT Corporation611, Daejung-ri, Onsan-eup, Ulju-gun, UlsanPhone : 82-52-231-9981Fax : 82-52-239-9940

OVERSEAS AFFILIATES

PMX Industries, Inc.5300, Willow Creek Drive S.W., CedarRapids, Iowa 52404, U.S.APhone : 1-319-368-7700Fax : 1-319-368-7701

Poongsan (H.K.) Ltd.Suite 1120, Ocean Centre 5, Canton Road,Tsimsatsui, Kowloon, Hong KongPhone : 852-2-735-6330Fax : 852-2-730-7396

Poongsan Metal Plant(Dongguan)Foreign Trade Development Co., Hi-tecIndustrial Zone, Humen Town, DongguanCity, Guangdong Province, ChinaPhone : 86-769-8550-9747Fax : 86-769-8550-9743

Poongsan (Shanghai) Co., Ltd.Jiatai Road No.105, Pudong WaigaoqiaoFree Trade Zone, Shanghai, ChinaPhone : 86-21-5868-0881Fax : 86-21-5868-0882

Poongsan (Shenzhen) Co., Ltd.Room 801, Tower A, Jixinyayuan, Songgang,Baoanqu, Shenzhen, ChinaPhone : 86-775-2962-7098Fax : 86-755-2771-0470

Siam Poongsan Metal Co., Ltd.38/14 Moo 5, Laemchabang Industrial Estate,T. Tungsukhla, A. Sriracha, Chonburi 20230,ThailandPhone : 66-38-400-056Fax : 66-38-490-328

Poongsan Japan CorporationRune Yotsuya Building 3rd floor2-4-1, Yotsuya, Shinjuku-ku, Tokyo, 160-0004, JapanPhone : 81-3-5269-6570Fax : 81-3-5269-6571(Kawaguchi Office)Angyo-Kitaya 628, Kawaguchi, Saitama334-0054, JapanPhone : 81-48-297-6931Fax : 81-48-297-6933(Aioi Branch)10-16, Aza-Higashi Shiomizuka, Kuga, Aioi,Hyogo 678-0003, JapanPhone : 81-7912-3-5971Fax : 81-7912-3-5976

Poongsan (M) SDN BHDNo. 16, Jalan Anggerik Mokara, 31/59, KotaKemuning, Seksyen 31, 40460 Shah Alam,Selangor, MalaysiaPhone : 60-3-5122-0001Fax : 60-3-5122-0002

Poongsan America Corporation601 South Figueroa St. Suite No.4600, LosAngeles, CA 90017, U.S.APhone : 1-213-236-0300Fax : 1-213-236-0308

POONGSAN HOLDINGS CORPORATION

HEAD OFFICE

60-1, 3-ga, Chungmuro, Chung-gu, SeoulPhone : 82-2-2278-6700Fax : 82-2-2278-6790

DOMESTIC PLANTS

Changwon Plant57, Sungju-dong, Changwon, GyeongnamPhone : 82-55-239-0700Fax : 82-55-239-0800

Dongrae Plant52, Banyeo 1-dong, Haeundae-gu, BusanPhone : 82-51-520-8900Fax : 82-51-522-0117

AFFILIATES

Poongsan Special Metal Corporation324-6, Hyosung-dong, Gyeyang-gu, IncheonPhone : 82-32-540-7114Fax : 82-32-540-7400

Poongsan Valinox Corporation324-6, Hyosung-dong, Gyeyang-gu, IncheonPhone : 82-32-556-4424Fax : 82-32-556-4429

Poongsan Metal Service Corporation680-1, Naegi-ri, Poseung- Oup, Pyeongtaek,GyeonggiPhone : 82-31-650-7500Fax : 82-31-650-7511

Poongsan Microtec Corporation52, Banyeo 1-dong, Haeundae-gu, BusanPhone : 82-51-520-8700Fax : 82-51-529-0061

Poongsan Microtec Philippines, Inc.E. Quirino Avenue, Near Sapangbato Gate,Clark Special Economic Zone, Clarkfield,Pampanga, PhilippinesPhone : 63-45-599-2773/4Fax : 63-45-599-2817

Tongling Poongsan Sanjia Microtec Co.,Ltd. Electronic Zone, Shicheng Rd., Tongling city,Anhui province, ChinaPhone: 86-562-262-7760/2Fax: 86-562-262-7775

OVERSEAS & DOMESTIC NETWORK

52

PLANNING &MANAGEMENT DIV.

AUDITOR

AUDIT DIV.

ENTERPRISE RISK MAN-AGEMENT SUPPORT DIV.

CHIEF OFFICER OF MANAGEMENT

MANAGEMENT DIV.

FINANCE DIV.

INTEGRATED PROCUREMENT DIV.

ONSAN PLANT

NON-FERROUS METALPRODUCTS SALES DIV.

ANGANG PLANT

DONGRAE PLANT

DEFENSE PRODUCTS SALES DIV.

CHIEF OFFICER OF FABRICATEDNON-FERROUS METAL BUSINESS

CHIEF OFFICER OF DEFENSE PRODUCTS BUSINESS

ORGANIZATION & BOARD OF DIRECTORS

GENERAL SHAREHOLDERS’ MEETING

BOARD OF DIRECTORS

CHAIRMAN & CEO

VICE CHAIRMAN

Ryu, JinChairman & Chief Executive Officer

Choi, Sang YoungVice President

Park, Woo DongVice President

Yu, Byung DukAuditor

Lee, Bong SooOutside Director Dean, ProfessorGraduate School of Journalism,Semyung University

Hyun, Seung SooOutside DirectorResearch ProfessorThe Institute of Central Asian Studies,Hankuk University of Foreign Studies

Ryu, Mok KiVice Chairman