1. DAELIM INDUSTRIAL CO., LTD. Petrochemical Division
OVERVIEW
DAELIM INDUSTRIAL CO., LTD.
Petrochemical Division

2. CORPORATE STRUCTURE (DAELIM GROUP)
Daelim Industrial Co., Ltd.
(Parent Company of Daelim Group)
Affiliated Companies
Construction Division
- E & C Operation
 Petrochemical Division
- HDPE, Polybutene, Plastic Products
Daelim Corporation
Seoul Securities
Daelim Information & Service
Daelim Motors
Daelim Concrete Products
Korea Development Corporation
Samho International
Ora Resort
Daelim Education Institution
Web-Tech Venture Capital
Daelim Foundation of Culture

3. COMPANY HISTORY 1939 1975 1979 1987 1989 1992 1999 2000 • Established
• Established Honam Ethylene
• Participated to Petrochemical industry(Honam Ethylene)
• Operated Naphtha Cracking Center NO. 1
1979
• Merged with Honam Ethylene (Petrochemical Division)
• Started Pipe processing business
1987
1989
• Operated Naphtha Cracking Center NO. 2 & HDPE plant
1992
• Established R & D Center at Daeduk
1999
• Established Yeochon NCC(with Hanwha)and transfered LDPE & L-LDPE
plant to Hanwha in exchange for Hanwha’s PP plant
2000
• Established KR Copolymer(with Phillips) & Polymirae(with Basell)

4. PETROCHEMICAL DIVISION BEFORE RESTRUCTURING
ETHYLENE
730,000 MTA
HDPE
220,000 MTA
PHILLIPS
PROPYLENE
420,000 MTA
LDPE
120,000 MTA
ICI
RAYTHEON
STYRENE
MONOMER
140,000 MTA
MIXED-C4
290,000 MTA
LLDPE
260,000 MTA
Basell
(MONTELL)
NAPHTHA
CRACKING
CENTER
BUTADIENE
100,000 MTA PP
330,000 MTA
Basell
(MONTELL)
NIPPON
ZEON
LUMMUS
MTBE
130,000 MTA
BENZENE
180,000 MTA
K-RESEIN
40,000 MTA
PHILLIPS
UOP
IFP
ARCO
APCI
ISO-BUTENE
60,000 MTA
TOLUENE
110,000 MTA
POLYBUTENE
25,000 MTA
BUTENE-1
30,000 MTA
DAELIM
XYLENE
60,000 MTA
SNAMPROGETTI

5. RESTRUCTURING PETROCHEMICAL DIVISION
Daelim industrial Co., Ltd.
(Petrochemical Division)
YEOCHON NCC
(With Hanwha)
HDPE
380,000 MTA
ETHYLENE
1,300,000 MTA
POLYBUTENE
25,000 MTA
Daelim’s
Petrochemical Plant
PROPYLENE
705,000 MTA
Plastic Products
130,000 MTA
BTX
550,000 MTA
STYRENE MONOMER
140,000 MTA
KR COPOLYMER
(With Phillips)
POLYMIRAE
(With Basell)
MTBE
150,000 MTA
K-RESIN
40,000 MTA
BUTADIENE
120,000 MTA
POLYPROPYLENE
540,000 MTA

6. FINANCIAL HIGHLIGHTS Description 1,131,581 615,637 450,956 428,791
(UNIT : Million won)
Description
1999
2000
2001
2002(e)
Total Sales
1,131,581
615,637
450,956
428,791
Total Assets
1,432,283
986,978
847,160
829,371

7. A Specialized Leading Chemical Company Global Standardization
VISION
Vision
A Specialized Leading Chemical Company
- Ranking 1 or 2 in Asia -
Global Standardization
Specialization
High-Advanced
Business Structure
Strategy
Choice and Focus
Reinforce Global Partnership through Strategic Alliance
Develop Value – Added Chemical Business

8. ORGANIZATION DAELIM Construction Division Petrochemical Division Head
office
Yeochon
plant
Yongsung
plant
Junghung
plant
Plastic
Products
Division
Daeduk
R & D
Center
Chochiwon
Plant
Chonju
plant
Wolha
plant
Sunchon
plant
YNCC
KRCC
Polymirae
Daelim
Corporation
Sales Agent
Monomer
Production co.
K-Resin
Production co. PP
Production co.

9. Seoul Chochiwon Daeduk Chonju Sunchon Yeochon Daelim Corporation
Head office
Plastic product division(Seoul office)
Sales agent
Chochiwon
Daeduk
Chochiwon plant
Daeduk R & D center
Chonju
Chonju plant
Sunchon
Sunchon plant
Yeochon
Yeochon plant
Yongsung plant
Junghung plant
Wotha plant

10. Petrochemical Business Plastic Products Business
MANPOWER STATUS
Total : 652
( )
Petrochemical Business
Plastic Products Business
Head office
Head office
Yeochon plant
Chochiwon plant
R & D Center
Chonju plant
Sum
Wolha plant
Sunchon plant
Sum

11. PRODUCTION CAPACITY Product Location Application Capacity(MTA) HDPE
380,000
Yeochon
Film, Injection Molding,
Blow Molding, Stretched,
Pipe, Rotational Molding
Polybutene
Yeochon
Lubricants, Adhesives,
Electrical Insulation,
Fuel/Lube Additive
Water pipe, Gas pipe,
Sewage pipe, Geo sheet
PIPE
37,000
Chochiwon
OPP
23,000
Chonju
Base Film, Co-extrusion film,
Metalized Film, Matte Film
Pearl Film, While Opaque Film
Compound
71,000
Yeochon/
Sunchon
HDPE Compound,
PP Compound

12. SALES PLAN (Y2002) Quantity : 445,000 MTA Amount : U$ 342 Million HDPE
327,000
Amount : U$ 342 Million
US 1$ = \1,250
Polybutene
OPP
23,000
PE 332,000
Shared service 19
Compound 34
PIPE
24,000
PE 196
O4P 33
PIPE 37 PB 23
OPP
26,000
Compound
42,000

13. R & D ACTIVITIES AND SUCCESSES
◃ Process development
◃ Polymer research
◃ Plastic technology
◃ Analysis research
◃ Polybutene Production Technology
- Awards : KT mark, IR52 Jang young shil
◃ Automotive Compound
◃ Wire & Cable Compound
◃ Flame Retardant Compound
- Awards : KT mark, UL Flame
Retardancy Certificate
◃ Light Decomposing Master Batch
- Awards : Q mark, GP mark,
DSET(TEST Lab in USA)
Certificate
◃ Finecell Composite
: a Master Batch of inorganic blowing agent
◃ Pipe & Geo – sheet Compound