Introduction ; SK Group, SKC

A powerful company that is creating a happy

society with the backing of people’s trust

1. SK Group

• 2004 Total Sales : US$ 53,745 million ;

- Energy&Chemicals 42%, Telecommunications 27%, Trading&Service 31%

- The 4th biggest Group in Korea

• SKC, SK Corp., SK Chemicals, SK Gas, SK E&S

• SK Telecom, SK C&C, SK Telink, SK Telesys

• SK Networks, SK E&C, SK Shipping, Sheraton Walkerhill

2. Group History

SK Launches the Initiative “From Petroleum to Fibers”

Focusing on Export, SK reaches the $100-million mark

SK aggressively expands its energy and chemicals businesses

SK makes major advances in the telecommunications industry

SK Shifts its core businesses to IT and life science

1953Sunkyong Textiles was founded

1969Sunkyung Fibers was founded, Produce polyester filament yarn

1976Sunkyong Textiles change its name to Sunkyong Ltd. and become a general trading company

1978SKC became the 4th company in the world to develop polyester filmSKEC was founded

1980Yukong Ltd. was acquired. Other related companies were added : Yukong Line, Yukong Gas etc.

1989SKC produced Magneto-Optical disks, the 4th company in the world

1994SK assumed management of Korea Mobile Telecom, which becomes SK Telecom on 1997

1993SKC became the 1st company in Korea to produce laser discs

1996SK Telecom became the first organization in the world to commercialize super-clear CDMA-based digital wireless telephone service

2000SK Telecom was licensed to provide asynchronous (W-CDMA) IMT-2000 service

2001SKC and SK Evertec merged. SK Evertec became SKC Co., Ltd.

2003SK Group celebrated its 50th anniversary

2004SK Telecom launched the world's first satellite for DMB serviceSK Global (former Sunkyong Ltd.) changed its corporate name to SK Networks

3. SKC Co., Ltd.

History1976 SKC founded

1978 Introduction of polyester films for the 1st time in Korea

(With currently 4th market share in the global market)

1980 Development of video tapes for the 1st time in Korea

1986 Manufacturing of CD for the 1st time in Korea. Developed mass

media products with the latest technology such as MOD, MD, DAT, and CD-R

1999 Completion of local plants in China and Georgia

2001 Initiated mobile communication and information technology business.

Merging with SK Evertech, a precision chemistry corporation and

developed TFT LCD and materials and continued to develop the core

displaying products

2002 Manufacturing lithium ion polymer batteries for mobile communication

devices. R&D in IT products such as PDP color filter

2004 Start to produce PI film for the 1st time in Korea.

SKC Co., Ltd. (as of 2004)

Sales ; USD 1,270million

Total Assets ; USD 1,377million

Employees ; 2,496

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MobileDevice

MobileDevice HandsetHandset 20012001 USD

324 million

USD324 million

4. SKC Business Fields

FilmFilm

ChemicalChemical

MobileMaterial

MobileMaterial

DivisionDivision ProductProduct BusinessStart

BusinessStart

2004Sales

2004Sales

CompetitivePower

CompetitivePower

PET FilmPEN FilmPI Film

PET FilmPEN FilmPI Film

PO, PG, SMPO, PG, SM

LIPBLIPB

19781978

2001(Merge)

2001(Merge)

20032003

USD260 million

USD260 million

USD415 million

USD415 million

DisplayMaterial

DisplayMaterial

Films for LCDPDP Filter

Films for LCDPDP Filter 19981998

USD272 million

USD272 million

‘SKY’ Whole Supplyto SK Teletech

‘SKY’ Whole Supplyto SK Teletech

1st in Korea3rd~4th in the world

1st in Korea3rd~4th in the world

PO, PG Sole Supplierof Korea Market

PO, PG Sole Supplierof Korea Market

1st Class in Korea1st Class in Korea

1st in the world1st in the world

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5. SKC Global Network

12

3

45

6

7

Domestic OfficesOverseas Manufacturing Line

Overseas Offices

8

US Georgia Plant : Polyester Film3

Taiwan Taipei Office4

China Guangzhou Office

China Shanghai Office

5

Europe(Germany) Frankfurt Office6

Japan Tokyo Office7

SKC Inc. : US Georgia8

Seoul Head Office : Seoul

Suwon Plant : Polyester Film & R&D Center

Jinchon Plant : PI Film

Chonan Plant : Media, Specialty Film etc.

1

China Suzhou Plant : Specialty Film

China Huizhou Plant : Specialty Film

China Tongling Plant : Polyester Film

2

8

6. SKC Film Division

Suwon Plant : PET Film, PEN Film, PI Film (#0)633 Chongja-dong, Changan-gu, Suwon-si, Kyonggi-do, 440-300, Korea

Jincheon Plant : PI Film (#1~ )766 Nowon-ri, iwol-myeon, Jincheon-gun, Chungcheongbuk-do, 365-822, Korea

Suwon Film R&D Center911 Chongja-dong, Changan-gu, Suwon-si, Kyonggi-do, 440-300, Korea

Georgia Plant : PET FilmSKC Inc. One SKC Drive Covington, GA 30014, U.S.A

Seoul Head OfficeKyobo Tower, 1303-22, Seocho 4-dong, Seocho-gu Seoul 137-070, Korea

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SKC Polyimide Film

10

2001 Start the polyimide film R&D

2002 Participate in the government’s polyimide R&D project withKRICT (Korea Research Institute of Chemical Technology)

2003 Place order of 1st PI production line (#0)

2004 PI film #0 line installed, start operationSucceed in 1st production of SKC PI film

2005 Finish IN, IF type development (1/2mil~1mil)Place an order for #1 mass production line1st commercial sales of SKC PI film

2006 Finish IS type development

1. SKC PI film History

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2. Polyimide Chemistry

PolyimidePolyimide

Standard TypeStandard Type

+O O

OO

O O

PMDA(Pyromellitic Dianhydride)

H2N NH2

O

ODA(Oxy Dianiline)

N N

OO

O O

O

n

Polyimide

※ Alternative Commercial Dianhydride : BPDA (Biphenyltetracarboxylic Dianhydride)

※ Alternative Commercial Dianiline : PPD (p-Phenylene Diamine)

O O

OO

O O

Dianhydride

+ H2N NH2R

Diamine Polyimide

N N

OO

O On

R 2H2O+Ar Ar

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3. Manufacturing Process

Slitting & Packaging

Dianhydride

Diamine

Solvent

Casting

Varnish Storage

Drying CuringWinding

Polymerization

Annealing

Corona

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4. SKC PI Film Type

IN70IN70

IF70IF70

TypeType DescriptionDescription

• Good Flexibiliry• Annealed and both side corona treated

• Good Flexibiliry• Annealed and both side corona treated

• Good Dimensional Stability• Annealed and both side corona treated

• Good Dimensional Stability• Annealed and both side corona treated

IS70IS70 • Much better dimensional stability and modulus• For 2-L FCCL

• Much better dimensional stability and modulus• For 2-L FCCL

ThicknessThickness

1/2 ~ 1 mil(12.5~25 )

1/2 ~ 1 mil(12.5~25 )

1/2 ~ 1 mil(12.5~25 )

1/2 ~ 1 mil(12.5~25 )

1.5 mil(38 )

1.5 mil(38 )

CompetitorsCompetitors

KaptonVN

KaptonVN

ApicalNPI

ApicalNPI

KaptonEN

KaptonEN

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Property UnitDupont

Kapton VN

Kaneka

Apical AH

SKC

IN70

Thickness 25 25 25

Mechanical

Specific Gravity g/ 1.42 1.42 1.42

Tensile Strength kgf/ 24 25 28

Elongation % 72 100 91

Modulus kgf/ 255 330 336

ThermalHS (2hr at 200 ) % 0.03 1)※ 0.08 0.05

CTE (100~200 ) ppm/ 32 32 30

Electrical

Dielectric Strength / 300 320 300

Volume Resistivity Ω· >1017 >1015 >1016

Dielectric Constant - 3.4 3.2 3.4

Chemical Moisture Absorption % 2.8 2.5 2.5

5. Property Comparison (1)

IN70IN70

※1) Measurement Condition : 30min at 150※ Competitor’s Data : From their catalogues and home pages

※ SKC’s Data : Measured data

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5. Property Comparison (2)

IF70IF70

Property UnitKaneka

Apical NPI

SKC

IF70

Thickness 25 25

Mechanical

Specific Gravity g/ 1.45 1.45

Tensile Strength kgf/ 31 31

Elongation % 90 85

Modulus kgf/ 420 460

ThermalHS (2hr 200 ) % 0.06 0.03

CTE (100~200 ) ppm/ 16 16

Electrical

Dielectric Strength / 320 300

Volume Resistivity Ω· >1015 >1016

Dielectric Constant - 3.2 3.4

Chemical Moisture Absorption % 2.5 2.5

※ Competitor’s Data : From their catalogues and home pages

※ SKC’s Data : Measured data

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6. SKC PI film Property (1)

Thickness VariationThickness Variation

Thickness Profile R( )

3.0Taimide

0.9Kapton

4.5Wanda

1.0SKC

Property Unit SKC Kapton Taimide

Thickness Variation

(Max.-Min.) 1.0 0.9 3.0

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SKC Kapton Apical

Before Corona Treatment

After Corona Treatment

HN VN NPI

Contact

Angle

Picture

Contact

Angle67 27 68 38 35

Surface

Tension44 dyne/cm

68 dyne/cm ↑ 46 dyne/cm 66 dyne/cm

68 dyne/cm ↑

6. SKC PI film Property (2)

Surface (1)Surface (1)

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40.0

50.0

60.0

70.0

80.0

Time

Sur

face

Ten

sion

Inner

Outer

0.0

20.0

40.0

60.0

Time

Cont

act

Ang

le

Inner

Outer

6. SKC PI film Property (3)

Surface (2)Surface (2)

Change with lapse of time Right after corona treatment 10 weeks after

Contact angle 26 42

Surface Tension

(dyne/ )68 dyne/cm ↑ 64 dyne/cm

Contact AngleContact Angle Surface EnergySurface Energy

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Suwon #0 Jincheon #1 Jincheon #2

Start 2004.10. 2006.06. Early of 2008

Capacity

(Accumulated)

100,000 /M700,000 /M

(800,000 /M)

1,400,000 /M

(2,200,000 /M)

Ton 40 Ton/Y300 Ton/Y

(340 Ton/Y)

600 Ton/Y

(940 Ton/Y)

Product width

520(Max. 580 )

250 ~ 1040(Max. 1,560 )

250 ~ 1040(Max. 2,080 )

※ Standard width is 520 , but available as customer’s demand

※ Providing by “inch” is possible

Available Thickness 12.5~125 12.5~75 12.5~75

7. SKC PI Film Business Plan (1)

ProductionProduction

• SKC will increase the production line to 5 lines until 2010.

• The capacity will be more than 2,000 Ton/Y in 2010.

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7. SKC PI Film Business Plan (2)

R&DR&D

ULUL

Type Application Status & Plan

IN 3-L FCCL, Motors, Generators, PST Completed

IF 3-L FCCL Completed

IS 2-L FCCL, COFWill be completed

in the 1st Qtr of 2006

Type ThicknessUL94 UL746B

Grade Schedule Grade Schedule

In the process IN## 25 V-0 05.12 200 06.02

PlanIN## 12.5~75 V-0 06.02 200 06.06

IF## 12.5~75 V-0 06.02 200 06.06

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OK! SKCOK! SKCOK! SKCOK! SKCCustomerCustomerCustomerCustomer

• 30 year old plastic film expert “SKC” starts to supply Pl film in

the name of “SKC PI film” with its accumulated and advanced

technology

• SKC has invested vastly in the PI film R&D for 5 years, and can

supply fast and proper technical support satisfying customer’s

demands

• SKC will invest continuously in PI film business and will grow

up as a major global player in the near future

• With SKC PI film, you’ve got the best quality of products and

services. Your best choice is SKC

Conclusion