Kolon and SKC, two archrivals over the last three decades in the chemical and textile markets, are colliding head-on again in devices for next-generation displays such as LCDs (liquid crystal displays), PDPs (plasm display panels) and organic ELs (electronic luminescents).
The late battle of the rivalry was in the late 1990s when the two expanded into the polyester (PET) film and videotape markets. At that time, SKC claimed the victory, accounting for 37% and 22.3% in the markets for PET and videotapes compared to 17% and 13.7% held by Kolon.
The clash of egos that began back in 1977 is heating up again over information communication devices, a key business area in the 21st century.
CEO of SKC Choi Dong-il and CEO of Kolon Cho Jeong-ho, in fact, went to school together to Seoul National University, and are now heading the companies to take a lead in the display device market.
Kolon is all set to win the battle this time. It has developed a dry film photoresist, or DFR, used for LCDs and print circuit boards for the first time in the home market, and replaced Japanese imports to take some 40% of the market. The company has also developed a dry film for PDPs to foray into the PDP device market and has recently rolled out an optical extension board for LCD TVs, making fast steps ahead of its rival SKC.
SKC is also on the move, opening a large IT process film factory in Shuzou, China last month to produce optical, dry and semiconductor films beginning in next year. The company aims to boost sales of communication and IT devices from the present 37% of total revenues to 44%, or 200 billion won (approximately 17.02 million dollars), next year.
The next-generation organic EL market is expected to become a key battleground in the fierce rivalry as the two companies heavily invest in the business. Kolon has unveiled a plan to inject 90 billion won in organic EL over the next few years, and SKC is set to spend 60 billion won for mass production of organic EL by 2005.
Given that Samsung SDI and LG Electronics have already jumped into the organic EL market, the two rivals will also have to compete with the established display makers as well as engaging in the rivalry.