March 18, 2025 – Leading Korean paint and building materials company KCC has announced its impressive financial results for the year 2024. According to the report, the company achieved sales of KRW 6.658 trillion, equivalent to approximately USD 45.95 billion, marking a 5.9% increase from the previous year. This growth is primarily attributed to the continuous surge in sales performance of its overseas subsidiaries, particularly in China and other countries.
KCC also excelled in profitability. The company’s operating profit reached KRW 471.1 billion, or roughly USD 3.25 billion, representing a significant 50.7% year-on-year increase. Even more astonishing was the net profit, which saw an incredible growth rate of 217.1%, reaching KRW 293.3 billion, or approximately USD 2.02 billion. Since its establishment in 1958, KCC has specialized in providing comprehensive fine chemical products such as materials, paints, silicones, and advanced materials to the construction industry. Its business scope spans various sectors, including building materials, paints, and silicones.
Among KCC’s various business segments, silicones undoubtedly stand out as the core. In the 2024 fiscal year, the silicone business generated consolidated sales of KRW 2.9953 trillion, equivalent to USD 20.67 billion, accounting for 44.98% of the total sales and serving as the main driver of the company’s overall growth. Following closely is the paint business, which serves as KCC’s second-largest source of revenue. In FY2024, it recorded consolidated sales of KRW 1.9358 trillion, or about USD 13.36 billion, accounting for 29.07% of the total sales. Notably, KCC ranked 17th on the “2024 Global Top 100 Coatings Companies” list with sales of KRW 1.657 trillion (approximately USD 12.28 billion), and its ranking is expected to climb further this year.
Despite a slight decline in the building materials business due to the downturn in the construction industry, KCC’s overall sales still achieved steady growth thanks to the strong performance of its paint and silicone businesses. Furthermore, KCC demonstrated exceptional financial management prowess. At the end of last year, the company not only repaid part of the expenses related to its acquisition of Momentive but also refinanced approximately KRW 400 billion in debt through the issuance of public bonds, significantly reducing its financial burden.
Industry insiders revealed that KCC’s recent demand forecast for the issuance of KRW 250 billion in public bonds was very encouraging. The KRW 250 billion bond received purchase orders totaling KRW 1.58 trillion (approximately USD 1.5 trillion), with an oversubscription rate exceeding six times. Based on this robust market demand, KCC decided to increase the bond issuance to KRW 400 billion, with all funds being used to repay upcoming debts. This initiative further optimized the company’s debt structure and significantly reduced its interest expenses.
KCC’s successful diversification into various businesses, including paints and coatings, has undoubtedly won it widespread investor favor in the bond market. Even in the context of deteriorating sentiment towards construction bonds, KCC has successfully resisted the impact of the economic downturn due to its good credit rating and profitability. As an official from KCC stated, “We have achieved stable performance with a robust investment portfolio. We plan to continue pursuing cash flow-driven business activities to cope with potential difficulties.”