[Interview] Jung Young-sik, CEO of Beomhan Fuel Cell, "Expanding Business to Mobility and Ship Markets After Listing"

Possessing Military-Grade Hydrogen Fuel Cell Technology
Competitive Landscape with Germany's Siemens
Expanding Overseas Sales Share in Asia and Beyond
Accelerating Business Expansion into Mobility and Ship Sectors Post-IPO

[Asia Economy Reporter Minji Lee] "A company that started at age 30, painstakingly manufacturing and selling ship compressors by hand, has now become a global enterprise with hydrogen fuel cell technology comparable to Siemens. We aim to become one of the leading experts in the global hydrogen fuel cell market by expanding from military hydrogen fuel cell business to mobility and ship sectors."

On the 31st, Jung Young-sik, CEO of Beomhan Fuel Cell, who met with Asia Economy, expressed his intention to strengthen competitiveness in the hydrogen fuel cell business through a KOSDAQ listing. Despite the cooling interest in the IPO market due to stock market instability, CEO Jung said, "At this stage, it is more important to utilize the funds raised to increase the company's value than to raise more capital," adding, "We see this as a good timing where the expansion into mobility and ship markets aligns with the government's intention to expand hydrogen projects."

Beomhan Fuel Cell is a subsidiary spun off from its parent company Beomhan Industry at the end of 2019. Beomhan Industry handles compressors and ship equipment businesses, while Beomhan Fuel Cell is responsible for hydrogen fuel cells and hydrogen charging businesses. The majority of Beomhan Fuel Cell's sales come from the military fuel cell business.

Only two companies have entered this market: the German company Siemens and Beomhan Fuel Cell, dividing the market roughly 80:20. Beomhan Fuel Cell's main sales are in the domestic market. Starting with the 'Dosan Ahn Changho' submarine in 2019, domestic shipbuilders have been able to independently design submarines, and Beomhan Fuel Cell succeeded in commercializing military fuel cells by supplying fuel cells for these submarines.

CEO Jung's goal is "to raise the market share in the submarine market to the 50% range." His strategy is to increase export volume in overseas markets excluding Europe, where Siemens almost monopolizes. Replacement demand will also grow from 2024 due to the lifespan of fuel cell modules (7-8 years).

He said, "Recently, the world is shifting to a strategy of increasing military capabilities, so in about five years, the market size could grow 2.5 to 3 times compared to now," emphasizing, "Since the military fuel cell business is a national strategic project, technology, intergovernmental relations, and mutual trust are more important than product price. We plan to export products to allied Asian countries and distant nations."

They are also targeting the general ship market and mobility fuel cell market. He analyzed, "Since the fuel cell technology has been verified in maritime environments, it is easy to expand market share in each sector." The government's policy to build a carbon-zero society by 2050 is a major factor supporting CEO Jung's goals. He explained, "After 2030, there will be many zero-carbon ships using eco-friendly fuels such as ammonia and hydrogen instead of fossil fuel ships," adding, "We will also equip hydrogen fuel cells in large buses and major mobility."

Beomhan Fuel Cell Hydrogen Charging Station

The hydrogen charging station business is expected to gain momentum from new government policies. CEO Jung said, "We are increasing both profit scale and market share through domestic production of hydrogen compressors," and added, "We will also seek overseas expansion to major cities such as those in the Middle East, which have announced plans to expand hydrogen charging stations."

Beomhan Fuel Cell aims to achieve sales of 400 billion KRW by 2030. Last year, total sales were 46 billion KRW, meaning they plan to achieve tenfold growth within about ten years. CEO Jung Young-sik said, "If the explosive growth of the fuel cell business and the solid backing of the hydrogen charging business continue, we can easily exceed the target sales," adding, "Recently, the Yoon Suk-yeol administration has shown a strong will to actively foster the hydrogen industry by producing cheap hydrogen through nuclear power, which firmly supports the growth of the hydrogen industry."

Meanwhile, Beomhan Fuel Cell will enter demand forecasting for institutional investors over two days, from the 2nd to the 3rd of next month. The expected IPO price band is 32,200 to 40,000 KRW, with a maximum public offering amount of 85.4 billion KRW. The total number of shares offered is 2,136,000, all newly issued shares. The expected market capitalization after listing is between 282.3 billion and 350.7 billion KRW. The lead underwriter is NH Investment & Securities, and the joint underwriter is Korea Investment & Securities.

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