Daesung focuses on environmentally-friendly alternative energy security Korea's energy giant, Daesung Group, has led the domestic energy industry through massive investment in a variety of new and renewable energy sectors, according to a senior manager of the group. "From the supply of natural gas to community energy supply, SolarWin, landfill gas, and hydrogen fuel cell projects, we are covering almost all fields in the new and renewable energy sector to retain the top position in the country," David Younghoon Kim, Chairman of the group, said. In an interview with the Korea IT Times, Kim said, "Daesung Group has grown hand-in-hand with the development of the Korean energy industry for halfcentury since it was founded in 1947 as a briquette manufacturer. Gearing up for another big stride in the energy field, the group is now pushing for eco-friendly energy businesses and related sectors." Such initiatives are based on Kim's confidence that environment-related businesses will emerge as a new growth engine for the future world economy, following the information technology industry. Kim, a graduate of Seoul National University, earned an MBA at the University of Michigan, a degree in global economics at Harvard University, and then an M.A. in theology at the Harvard Divinity School. "I studied everything from humanism to practical business, and the diverse studies help me greatly with the various aspects of management," he said. It may have also made him become more daring in business. Led by Kim, 53, Daesung Group is involved in multiple businesses, including energy, environment, finance and cultural industry. Daesung Group, focusing on the energy and culture sectors, is now operating 19 subsidiaries, including Daesung Institute for Clean Energy(DICE), Daegu City Gas, Kyongbuk City Gas, and Daegu Energy Environment. In particular, Daesung Group and its affiliate Daegu City Gas have been distinguishing themselves in the advanced energy sector. For instance, Daesung Group, along with the Korean government, concluded a memorandum of understanding (MOU) with the Mongolian government on May 9 this year. Under the MOU, Daesung Group will export a solar home system, which can supply new and renewable energies to Mongolia. It is the first time for a Korean company to export the advanced energy system. Related to this, Daegu City Gas signed an implementing agreement (IA) with PhotoVoltaics Factory (PV Factory) at the Mongolian Energy Department on May 5 this year. It is a follow-up of the MOU conclusion between the Korean Ministry of Commerce, Industry and Energy and the Mongolian Energy Department on Korea's supply of new and renewable energy to Mongolia. Under the financial support of the Ministry of Commerce, Industry and Energy and Korea Energy Management Corp., Daesung Group established a solar home system and a combined solar-windpower- generating system in Mongolia over the past two years and succeeded in receiving high appraisal of its functioning. On the export contract, Kim said, "The new and renewable energy system to be supplied to Mongolia can be used not only for energy generation in Mongolia, but also for new and renewable energy to curb occurrence of greenhouse gas for prevention of global warming." He also said, "Daesung Group's technology power of solar home system never falls behind that of advanced countries, including Germany and Japan." Along with this, Daegu City Gas is also actively pushing ahead with the landfill gas (LFG) project, which allows the company to use waste as energy and reduce air pollution. The LFG business is expected to earn 7.2 billion won each year for the next 20 years from 2006. To improve air quality, Daegu City Gas is helping Daegu City to provide pollutionfree buses run on natural gas, as it set up seven compressed natural gas (CNG) stations, used to fuel such buses. The company is also launching a natural gas cogeneration business at individual buildings in cooperation with the Ministry of Commerce, Industry and Energy. "We expect the natural gas cogeneration business to become a key profit source in the near future, with existing energy sources running out, contributing to raising energy savings and efficiency of energy use," said the chairman. Community Energy Supply System (CES), is also one of the group's core future-oriented projects. In October 2004, Daesung Group was selected as the CES provider for a development region in Dalseong-gun, Daegu City by the Ministry of Commerce, Industry and Energy for the first time in Korea. At present, it is building infrastructure to supply electricity and heating to some 5,000 households, government & public offices, schools and commercial structures in Daegu. The project will be completed at the end of 2006 for the energy supply from 2007 in earnest. As a specialized company in the energy sector, Daesung Group is also striving to become one of the world's top energy companies through specialization and rationalization. "As energy and environmental problems have become hot issues to be settled these days, I am resolved to make Daesung Group one of the world's top companies in terms of energy and environmental sectors," said Kim. Commenting that development of new and renewable energy is the best way to solve both energy and environmental problems simultaneously, Chairman Kim said, "Daesung will continue to develop new and renewable energy and actively advance into overseas markets to become a company responsible for energy security in Korea." Saying that the level of environmental pollution has reached at a serious level, he stressed that Daesung Group will lead a campaign to protect the environment, while exerting best efforts to improve the social environment and develop the cultural industry. On the management goal and mid- and long-term vision of Daesung Group, Kim said, "We have placed the emphasis on specialization, rationalization and globalization of the management. At the same time, we will exert best efforts to make Daesung Group a top-tier company in the world in terms of specialty, public interests and profitability." Noting that energy security is a very important issue for Korea with few energy resources, Kim said, "We will strive to make Daesung Group a specialized company responsible for energy security and protection of environment." "To keep pace with the era of globalization, I will make a strong push for the CEM management, which means creating economy of mobility," he stressed. As for the mid- and long-term vision, he said that Daesung Group will foster the energy, financing and information & communication sectors as the three core businesses under the motto of "focus on the soft," "make it smart," and "globalize swiftly." Daesung Group will also actively foster the environment, distribution and construction sectors as the three main forces of the group, while developing the movie, education and media sectors as the three key strategic businesses. "In a nutshell, we will push ahead with the "Ten-Ten-Ten Plan," under which Daesung Group aims at achieving more than 10 trillion won in total sales, $1 billion in net profits in 2010," he said. "Through the group's subsidiaries, including BiNEXT HITECH Co. and Daesung Dot Com Co., we have been actively engaged in the culture business through investment in movie, drama, publication, event and game," said Kim. In line with this, Daesung Group concluded a memorandum of understanding (MOU) with Park Road Post of New Zealand, a company that produced the movie, "Lord of the Rings," early this year, he said. "Daesung and Park Road Post will establish a joint venture and plan to invest in movies, TV series and games to be manufactured in South Korea and New Zealand," he said.