GS Caltex Turns to Creating
"Blue-Ocean"Business Sectors
Focuses on development of new and renewable energy sources

GS Caltex is exerting itself to explore the so-called "Blue Ocean"new growth engine market as domestic oil refineries' competition has been heating up in the domestic oil refinery industry in the wake of the liberalization of the industry in 1997.
The oil refinery company is putting more energy into fostering such new growth engine sectors as exporting technologies related to liquefied natural gas (LNG), city gas and oil refinery operation, oil exploration, new and renewable energy development projects under its "Blue-Ocean"strategy aimed at creating new, uncompetitive markets.
A case in point under the Blue-Ocean strategy is exporting of the technology on factory operation other than oil refining. GS Caltex is making the most use of its acquired experiences and know-how on the operation of oil refineries, cost reduction techniques and management renovation methods to post a higher rate of growth. GS Caltex was commissioned to operate the state-run Sohar Oil Refinery by the Oman government. Under the deal, GS Caltex will reap $50 million plus fringe benefits in return for the transfer of experimental facilities and software.
Forecasting that mounting concern over environmental issues and energy consumption will bring about a surge in LNG demand, GS Caltex sees LNG sector as a Blue-Ocean business arena. The oil refinery is seeking to import LNG for its own consumption and construct LNG terminals.
Oil exploration and development projects are added to the list of Blue-Ocean projects. Starting its initial project to explore an gas filed off the sea west of Cambodia, GS Caltex is making strenuous efforts to acquire the rights to explore oil reserves in such strategic areas as Russia, the Middle East and Central Asia.
Besides, GS Caltex is quick to turn to the development of new and renewable energy sources. The most feasible business arena is considered to be the development of fuel cells. To this end, GS Fuel Cell, established by GS Caltex in 2000, succeeded in developing a 50 watt-class notebook fuel cell for the first time in the world. The oil refinery company is setting its sights on fostering new and renewable energy business sectors after developing 1 kw-class household fuel cell prototype, the first of its kind in Korea.
Meanwhile, GS Caltex Chairman & CEO Hur Dong-Soo has been recently selected as one of Korea's representative CEOs, who have made contributions to the development of the nation, by Seoul National University Business-Campus Foundation.
Chairman Hur, which has been with the petrochemical industry for 32 years, has been credited for having successfully hosted an event held last October 14 after he was elected to the first chairman of the Korea committee of the Korea-China-Japan Business Forum last August. He also earned a reputation for developing a corporate paradigm to co-exist with society by setting up the Korea Business Council for Sustainable Development (KBCSD) in March 2002, which has become a channel for corporate recommendations for improvement of the environment and discussions with the government.
KBCSD, established to facilitate businesses to contribute to sustainable development by doing their social duties to spur economic development and environmental preservation, has been making efforts to cooperate with WBCSD and PCSD to drum up concern for environmental preservation.
Chairman Hur, since his entry into the oil refinery in 1973, is an energy expert who has worked hard to make the energy industry an environment-friendly one. He made a great contribution to the growth of GS Caltex as a backbone of national economic development. He especially steered his company to expand into the petrochemical business, a basis of the national economy and peoples?lives, which is world-class in scale and competitiveness. nw

GS Caltex? Yeosu plant and GS Caltex Chairman & CEO Hur Dong-Soo