November 24, 2020
JNC Corporation

Notice of subsidiary establishment, business transfer to subsidiary,& formation of joint venture
JNC Corporation (hereinafter referred to as “JNC”), announces that its Board of Directors passed aresolution at a meeting held on November 24, 2020, concerning the establishment of a subsidiary for thedevelopment and sales of organic electroluminescent ( EL) materials, JNC’s asset transfer to the subsidiary,
and a contract on the formation of a joint venture (hereinafter referred to as “the Joint Venture Contract”)
through investment by JNC and SK Materials Co., Ltd. (based in Gyeongsangbuk -do, South Korea;
hereinafter referred to as “SKM”) for the sales of organic EL materials.
1. Objective of subsidiary establishment & reason for business transfer
JNC is developing blue dopant, on which it has a technological advantage, and its peripheral materials.
In order to meet needs of the rapidly growing organic EL display market, JNC has decided to set up asubsidiary specialized in the organic EL material business for the purpose of accelerating decision -makingand development of such materials, an d expanding the organic EL material business, and to transfer JNC’s
research and development division on organic EL materials to the subsidiary.
The subsidiary will go under the umbrella of a joint venture with SKM, as explained below, tostrengthen response to requests from South Korean panel manufacturers.
2. Overview of subsidiary to be established (scheduled)
1)

Trade nameSK JNC Japan Co., Ltd.

2)

Contents of business

R&D on organic EL materials, their sales to clients in Japan

3)

Head office

5-1 Goikaigan, Ichihara, Chiba Prefecture

4)

Representative

Mitsuyoshi Kyo , Representative Director

5)

Capital500 thousand yen (scheduled)

6)

Date of establishment

December 2020 (scheduled)7)

End of accounting year

December 31

Investment ratio

JNC: 100%*After joint venture procedures are completed, the company
will become the joint venture’s 100% owned subsidiary,
resulting in JNC possessing a 49% equity stake and SKM 51%.

8)

3. Outline of business transfer
Contents of business to be transferred: JNC-owned patents and commercial rights related to organic EL
material business
4. Objective of joint venture formation
All shares in SK JNC Japan Co., Ltd. (hereinafter referred to as “SJJ”) will be transferred to a newcompany to be established by SKM, which is to be known as SK JNC Co., Ltd. (hereinafter referred to as“SK JNC”). JNC and SKM will then combine their respective management resources regarding theorganic EL material business, and launch the combined business as a joint venture for the purpose ofusing the two companies’ respective strengths in the display market and improving adaptability toexpansion of business value and market changes, and response to clients.
JNC is scheduled to acquire 49% of all SK JNC shares in compensat ion for the transfer of SJJ shares.

5. Overview of joint venture to be set up (scheduled)－1－(1) Outline
1)

Trade nameSK JNC Co., Ltd.

2)

Contents of business

R&D, manufacture, sales of organic EL materials

3)

Head office

Hwaseong, Gyeonggi-do, South Korea

4)

Representative

Kim Soohyun, Representative Director

5)

Capital

479 million won

6)

Date of establishment

January 2021 (scheduled)7)

End of accounting year

December 318)

Investment ratio

JNC 49%, SKM 51%(2) Chart of capital relationship over joint venture formation
Joint venture (JNC 49%, SKM 51%) --- SK JNC Japan Co., Ltd. (100% subsidiary of joint venture)

6. Overview of joint venture partner
1)

Trade name2)

Contents of business3)

Head office

4)

Representative

Lee Young Wook, President & CEO

5)

Capital5,274 million won

6)

Date of establishment

November 10, 1982

7)

Listed stock exchange

KOSDAQ (listed in December 1999)

8)

Business results

Sales 772.2 billion won, net profit 143.3 billion won

9)

Relations, etc. with Chisso
Corporation

SK Materials Co., Ltd.
Production & sales of core materials such as semiconductors,displays, photovoltaics
59-33 Gaheunggongdan-ro, Yeongju-si, Gyeongsangbuk-do South
Korea

CapitalNone

Personnel

NoneTransactions

None

7. Schedule1)
2)
3)
4)

Date of Board resolution
Date of new company’s
establishment
Date of conclusion of Joint
Venture Contract
Date of joint venture’s
establishment

November 24, 2020
December 2020 (scheduled)
November 24, 2020
January 2021 (scheduled)

8. Impact on business performance
Effects of the business transfer and joint venture formation on JNC’s consolidated businessperformance in the year to March 2021 will be minor.

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