Kumho-Asiana Expands
New Business Arenas
Aims to post 800 billion won in ordinary profits on 11 trillion won in sales in 2006

Kumho-Asiana Group has come up with an aggressive business plan for the year 2006: reaping 800 billion won in ordinary profits on sales worth 11 trillion won, and investing 1.8 trillion won, a 50 percent surge over 2005.
Outlining its 2006 business plan and strategies on December 30, the business group said it would aggressively make investments into such areas as R&D, education, IT and social services in a bid to maintain a constant growth, enhance its competitive edge and put into practice "sharing'management policies.
The business group will be engaged in active overseas exploration projects as part of its efforts to beef up the global competitive edge of the group's core industrial growth engines - tire, airline and construction. It plans to expand investments into new business areas centering on logistics and tourism & leisure industries while actively considering M&As to some companies related directly to the group's core capabilities.
Kumho-Asiana Group Chairman Park Sam-koo said in his New Year's message that he summed up the 2006 management topics as "stability and take-off."Describing the year 2006 as the first year of its efforts to develop Kumho-Asiana into the top five business group, Group Chairman Park called on its executives and staff to explore the future in a forward-looking and dynamic manner. He urged them to explore futuristic growth engines, make massive investments into existing business areas, expand overseas projects and enter new markets through M&As. Park's remark is construed by industry analysts as his indication that he is determined to acquire the Korea Express, on the block, in a bid to help the group take a leap in terms of quality and quantity.
Marking the 60th anniversary this year since its inception, the business group attaches priority on strengthening business capabilities in the Chinese market during the year 2006. The business group, which has made investments into China so far, will divert its investment focus to Vietnam other than China. Its investment into China will continue into the year 2006.
In the first half of this year, Kumho Tire will dedicate its plant in Tianjin, China capable of producing 5.25 million tires. The project, which will cost $180 million, started last April. Kumho Tire will hold a ground-breaking ceremony on its third plant in Changchun, China with a capacity of producing 3.25 million tires per annum. Altogether, Kumho Tire's three plants in China, including the existing one in Nanjing will have a capacity of churning out 20 million tires annually from 2008.
Asiana Airlines plans to expand flight routes to China by launching two or three new flight routes.
Kumho Rent-A-Car will raise its rental fleet to 1,000 by 2008 when the Beijing Olympics is slated to be held.
Kumho-Asiana Group plans to foster logistics and tourism-leisure industries as the group's growth engine industries. The group plans to enter door-to-door logistics service and third party logistics markets by acquiring major logistics companies with the goal of developing it into an integrated logistics group. A combination of golf course, resort and entertainment park as well as airline, car rental and expressway bus businesses will bring about synergetic effects, group officials said. nw

Kumho-Asiana Group Chairman Park Sam-koo