[CEONEWS = Reporter Park Soo-nam] Year 2025. Kumho Polychem is celebrating its 40th anniversary. At a time when most chemical companies were struggling in what was considered a declining industry, Kumho stayed the course with steadfast determination. This is a meaningful result born of the company’s conviction in the idea that “chemistry is not dead.”
However, long-standing beliefs can sometimes become dangerous shackles. The market has changed, and so have customers. Survival could no longer depend on unit price competition—it required redesigning the market itself. At the center of this transformation was CEO Sun-Kyu Kim. He aimed to turn the company from one that sold products to one that sold technology.
This column takes a closer look at CEO Kim’s leadership and Kumho Polychem’s past decade, offering a sober forecast for where the company is headed over the next five years. It’s not just about being a “successful company,” but about how it endured and transformed.
1. Second in EPDM Global Market? The Numbers Are Right, But the Story Runs Deeper
Kumho Polychem is the world’s second-largest producer of EPDM (Ethylene Propylene Diene Monomer) by volume. Its annual output is around 230,000 tons, with an estimated 14% global market share. It’s considered to be on par with Japan’s JSR and Germany’s Lanxess in terms of technology.
But behind the numbers lie serious concerns. Global demand is rising, but oversupply from China is a significant threat. Chinese players like BlueStar and CNPC have launched aggressive low-price strategies, pushing Kumho Polychem’s EBITDA margin down from 19.8% in 2021 to 13.4% in 2024.
[Source: Korea Chemical Industry Statistics Association, Kumho Polychem IR data]
EPDM production volume: 230,000 tons/year
EPDM share of total revenue: ~68%
EBITDA margin (2024): 13.4%
Export ratio (2024): 58% (Key markets: Europe 32%, Asia 26%)
2. “Unit Price Competition is Death” — How CEO Kim Changed the Game
CEO Kim comes from a research background. He joined the Kumho Group in 1988 and has worked in technology, production planning, and strategy departments, making him intimately familiar with the company. He is the quintessential engineer-turned-CEO.
When he took office in 2018, the company was gripped by a sense of crisis: growth stagnation, rising costs, and organizational rigidity. Kim opted for structural reform over superficial expansion.
He said:
“Now it’s quality over quantity. We need to become a company that sells solutions, not just products.”
His core strategy involves a three-phase transformation:
Reducing dependency on EPDM
Expanding high-performance product segments like TPR and NBR
Building a product portfolio centered on new materials (EVs, hydrogen vehicles, ESG)
This strategy is still working. Sales of the TPR product line have increased 2.3 times since 2020. Recently, prototype special rubber for EV batteries was also delivered to a European OEM.
3. “A Quiet Rebellion” Inside — Employee Sentiment
Internal feedback on CEO Kim’s leadership has been more positive than expected. In a 2024 internal satisfaction survey, 72% of respondents said, “The decision-making structure has become more flexible.” Real-time collaboration systems between R&D and production have also received strong internal praise.
But concerns remain:
“Innovation is good, but it’s happening too fast.”
“Performance-based culture has increased interdepartmental friction.”
“It’s still hard to attract talent to regional manufacturing sites.”
Indeed, the company’s main plant in North Chungcheong Province has seen a 17% employee turnover rate over the past three years.
4. Dreaming of Becoming “Asia’s Dow Chemical” — A Deep Dive Into the Global Strategy
Kumho Polychem is betting big on global localization strategies.
Established a technical support office in Mumbai, India (2023)
Launched joint R&D customization projects in three European countries (Germany, Czech Republic, France)
Signed TPR supply contracts with OEMs in Vietnam
[Strategic Data]
India & ASEAN revenue share: 9.1% → 18.2% in 2024
New European OEM contracts: €19 million (to be delivered within 3 years)
ESG-based export revenue: Up 76% YoY
CEO Kim commented,
“It’s no longer about exporting materials—this is an era of exporting technology and trust.”
OEM-focused tech alliance strategies lie at the heart of this shift.
5. Three Key Risks Kumho Polychem Must Overcome in the Next 5 Years
EPDM Dependency Risk
Two-thirds of the company’s core revenue still comes from EPDM. Profitability remains vulnerable to auto industry cycles.
Carbon Neutrality and ESG Regulations
If commercialization of bio-based rubber materials is delayed, European exports could face roadblocks.
Lack of Skilled Talent
As a regional manufacturer, attracting young, high-level talent remains challenging. For a technology-intensive business model, talent is everything.
6. Should You Invest in This Company Now?
Kumho Polychem is undoubtedly a growth-oriented company—but it's also in a period of transformation. Investing based solely on past success may lead to regret.
Positive Scenario
High-value product sales exceed 50% by 2027
ESG compliance secured and technology-based exports expanded in Europe
Stable growth partnerships formed with global OEMs
Negative Scenario
Transformation stalls → Revenue remains EPDM-centric
New product commercialization fails → Margin decline
Talent pipeline fails → R&D capacity exposed
Kumho Polychem is not necessarily a "must-buy" stock. However, it's undeniably a portfolio worth watching—no, one that must be watched. The data supports its promise, and the past 40 years have proven the potential for meaningful transformation. Analysts’ dazzling predictions often require post-adjustment; in the meantime, investors risk losing real value. The ultimate judgment on Kumho Polychem’s 40-year voyage is best left to the investors themselves.
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