[Public Notice+] Kukbo, Full-Scale Entry into KF-Type Mask Business... Acquisition of 32 Production Facilities

[Asia Economy Reporter Jang Hyowon] KOSPI-listed company Gukbo (CEO Ha Hyun) is officially starting a mask business with SkyBio (CEO Lim Jaechang), which has obtained permits for cleanroom facilities and the manufacturing and sales (export) of pharmaceutical-grade KF protective masks.

On the 16th, Gukbo announced that it acquired 32 KF-type mask production facilities for 6.8 billion KRW. The counterparty is Hyogwang, with a contract deposit of 1.8 billion KRW paid in cash on the contract date, and the remaining 5 billion KRW to be paid through convertible bonds (CB). From Gukbo’s perspective, acquiring tangible assets without a large cash outlay minimizes liquidity risk while achieving the dual goals of entering a profitable new business.

Additionally, Gukbo announced through a convertible bond issuance decision disclosure that it will issue the 4th series of 5 billion KRW unnamed, unsecured private convertible bonds for facility funds. The conversion price is set at 2,140 KRW, with the conversion request period from September 3, 2021, to August 2, 2023, and the payment date scheduled for September 3.

The KF-type mask production facilities acquired from Hyogwang are “3D 4-layer mask manufacturing automatic equipment,” capable of producing both KF94 and KF80 masks. Compared to other companies’ mask equipment, each unit is equipped with seven ultrasonic welding machines, resulting in very high mask production capacity, and the main lathe uses milling, which reduces defect rates. Each unit can produce 60 masks per minute, and Gukbo plans to continue expanding the number of production facilities starting with these 32 units.

Gukbo and SkyBio are currently building new production facilities separate from their Suwon factory, with cleanroom facilities of class 1000 or higher nearing completion. The new factory is expected to be completed soon. Once production begins in earnest, the entire production line staff will wear protective suits, and the fully automated manufacturing line will operate 24/7 year-round, enabling broad supply of KF masks domestically and internationally.

Notably, since the 18th of last month, the government has relaxed regulations to allow up to 30% of daily mask production to be exported. Amid the ongoing global increase in COVID-19 cases, overseas buyers seeking quality-verified KF protective masks are actively placing orders, creating a favorable export environment. In this context, Gukbo aims to further promote the excellence of K-quarantine worldwide through superior KF mask exports, following the Korean Wave and K-POP craze.

In fact, on the 29th of last month, a milestone was achieved with Korean masks being exported to a U.S. government agency. When the container carrying Korean KF protective masks arrives at the Port of Seattle on the 17th, the masks will be delivered to the city of Seattle. The U.S. government agency’s decision to import Korean KF94 masks, which have not yet received FDA approval, is highly significant.

Ha Hyun, CEO of Gukbo, stated, “Currently, other companies are investing in disposable masks convenient for summer or masks without proper safety verification, but Gukbo is looking ahead and investing in safe and reliable KF protective masks at this time. We expect demand for KF94 and KF80 masks to explode again starting in September when production fully begins and the weather cools down.” He added, “Gukbo and SkyBio will greatly contribute to the safe supply of KF protective masks to prevent COVID-19 both domestically and overseas.”

Meanwhile, SkyBio is a company that owns manufacturing lines for all types of protective and safety masks including KF94, KF80, GN, and dental masks. Gukbo will fully handle distribution, sales, and logistics for SkyBio’s recently launched “skycare” brand masks, while SkyBio will focus on developing newly engineered masks capable of virus inactivation based on its outstanding technology. The company is also known to be expanding its business scope from B2B and B2C markets to the B2G (government) market.

This content was produced with the assistance of AI translation services.