Export Day Honors SK Energy CEO

Pres. Kim M.K credited with lasting contributions to SK Energy in expanding exports, building gas stations

President Kim Myung-kon of the R&D sector of SK Energy captured the Industrial Merit Iron Tower medal at the Export Day ceremony held at COEX in southern Seoul on Nov. 30 in recognition of his contribution to SK Energy’s competitive strength in leading the global market for refined oil and exploration of oil during his career spanning 32 years in the oil industry, since 1977.
From 2003, as head of the company’s energy and marketing sector, President Kim not only made oil supply stable, but also diversified the oil market for the company by tailoring oil products to the needs of customers around the world. He was responsible for the construction of the largest fuel oil cracking center, called an “oil field on land,” at the company’s Ulsan oil refinery in 2007 to make a huge contribution to boosting exports of light oil around the world.
Since 2008, Kim, as president in charge of the energy and marketing of SK Energy, led an energy saving campaign to overcome the economic crisis and boost exports of oil products by exploring new markets for oil overseas, thus making oil products major Korean export goods.
Kim also had a big hand in expanding the number of service stations in local regions around the country in the early years of his career with the company in the 1970s to make oil supplies to local regions stable, which reduced delivery costs of oil, contributing to customers’ welfare.
He led the company to develop numerous oil refining technologies so that the company can refine any type of crude oil to the extent that it has been able to diversify its oil markets around the world from Asia, the Americas, Europe and Australia and supply oil products tailored to the needs of those markets. The company has been able to supply its consumers at home and abroad on a stable basis as well as diversify imports and exports of oil due to its upgraded oil refining technologies, thus making a great contribution to the national economy.
Kim has also been credited with his extensive role in the company’s support to numerous oil refineries around the world, especially those in emerging countries including the TOR FCC plant in Ghana, Pertamina’s lubrication oil plant in Indonesia, the EPCL ethylene plant in Nigeria and the Wuhan ethylene plant in China. He also played a key role in the exchange of technology with top-class oil refineries in the world including NOC of Japan, considered critical to building overseas oil refining operations to advance into the global oil market in the 21st century.
Kim has also been credited with having been a leading figure in making oil an important export item by taking charge of the project to build a fuel-cracking center at the company’s Ulsan refinery leading to the production of light oil from heavy oil, a very profitable sector for the company. The project cost the company 2 trillion won in investment to build the facility and 1 trillion won worth of light oil extracted from the center is exported annually, making oil and its products an important export good for the country, despite Korea’s lack of natural resources.
The FCC unit produces light oil products such as gasoline, diesel and kerosene by cracking heavy oil and SK Energy also has a desulfurizing facility so that it can produce oil with a low sulfur content and thus helps clean the environment, making it exportable to advanced countries like the U.S. and countries in Europe where environmental regulations are tough, aiding in the growth of national exports.
Through the continuous exploration for natural resources, export markets, management of its global commercial network linking 14 countries and the conclusion of strategic tie-ups with companies overseas in a bid to create synergy in its overseas operations, the company has been pushing its export drive relentlessly.
SK Energy, Korea’s leading energy provider, announced 2009 third quarter earnings results. The third quarter revenue and operating profit decreased by 36 percent and 89 percent year-over-year to stand at 9.120 trillion won and 82.0 billion won respectively, which resulted in a decrease of net income by 46 percent to 252.4 billion won from the same period in 2008.
Despite a relatively healthy performance by the petrochemical, exploration & production (E&P) and lubricants businesses, the total revenue and profits declined, compared to the same period last year, mainly due to the weak performance of the petroleum business. The petroleum business has been directly affected by weak market demand resulting from the continued global economic slowdown and narrowed refining margins. nw

Pres. Kim Myung-gon in charge of the R&D sector of SK Energy who won the Industrial Merit Iron Tower at the 46th Trade Day ceremony on Nov. 30.