▲ KC Industry / Chairman Lee Hong-jae

Business diversification to strengthen the competitiveness of the PC industry

Maximizing synergy between PC culvert business and civil engineering PC business

KC Industry is the No. 1 producer of PC (Pre-cast Concrete) in Korea and is a leading company in the smart construction industry, which is the key to sustainable development of the construction industry. 

The company has the largest market share among about 60 member companies of the PC Culvert Association, and holds over 90 intellectual property rights, including 55 patents. In recognition of its product quality, the company was also registered as an excellent product in the Nara Marketplace of the Public Procurement Service. KC Industry has all the conditions to meet the national demand for government-supplied materials, and is recording stable sales and profitability through this. Since 2014, the company has pursued business diversification in earnest and developed the DSM method (Divided Shield Method) and the Shield Tunnel Segment. After 2019, the company has been strengthening its sales activities for special PCs to maximize synergy between the PC culvert business division and the civil PC business division. 

Sandalwood is fragrant even in seed leaf

Turn trials into opportunities

This success was due to the firm management philosophy and sacrifice spirit of KC Industry Chairman Lee Hong-jae, who has been sweating with the workers in the field to pursue change and innovation without a stop. Since its establishment on March 31, 1995, KC Industry has been growing explosively. Since Chairman Lee Hong-jae took over the business in September 2007, sales have more than tripled, leading the company’s growth. Existing sales were only 22.3 billion won in 2005 and 29 billion won in 2006. However, starting with 42.3 billion won in 2007, when Chairman Lee Hong-jae took over the management, the company achieved continuous sales growth, including 59.2 billion won in 2009, 62 billion won in 2010, and 74.6 billion won in 2021. The expansion of the Yeoju plant, which is scheduled to be completed in 2023, plans to increase sales by more than 120 billion won. 

Business grows by eating trust

‘Precast concrete’, the core of the OSC smart construction era

This success was possible not only because of the achievements of all KC Industry executives and employees, but also because of the trust management of Chairman Lee Hong-jae, who said, “Business grows by eating trust.” As a result, in 2019, in recognition of corporate trust, financial support for factory smart innovation automation was realized with the support of the first financial institutions and other asset management companies. Through continuous investment, the company acquired the second plant in Icheon of about 33,057 square meters, and is building a PC building and PC modular plant with an area of about 66,115 square meters near the main plant in Yeoju. Precast concrete is the main product of KC Industry, which is advantageous for shortening the construction period and has eco-friendly characteristics. PC is highly evaluated for its future growth potential in line with low-carbon, sustainable growth and OSC construction transition policies. The PC method can reduce the construction period by half compared to using the traditional cast-in-place reinforced concrete method, and a significant number of related work is done in advance in the factory, thereby reducing on-site manpower. It is also recognized as a safe construction method that generates less noise, dust, and various wastes, and can alleviate risk factors related to the Severe Accident Punishment Act, which has been implemented at construction sites since the beginning of this year.

Precast concrete industry and the future of KC industry

Expected to grow into a leading company in the global construction industry beyond Korea

Chairman Lee said “Recently, the construction environment is getting difficult due to the aging of the manpower, the five-day work week, and the implementation of the 5/8 ready-mixed concrete system, and increased labor cost. Environmental and safety issues and civil complaints such as extension of construction period due to lack of manpower are also occurring. Good news is that the precast concrete we operate is received as an alternative to solve these problems.” In fact, KC Industry is accelerating the activation of OSC smart construction based on ESG-oriented corporate structure improvement. The company is continuously investing and conducting new businesses in various fields such as designing through BIM, surveying using drones, and sales of B2C/B2B modular using internships in the Drone Department of Myongji College. The company has been producing and installing structures from the customer’s point of view, driven by ‘faith, hope and love’, the management philosophy of Chairman Lee. Attention is paid to whether KC Industry will be able to stand tall as a leading company in the global construction industry beyond Korea.