KINTEX Reaches Break-Even Point
Createdd 2011-02-28 Hit 1176
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According to Yonhap News,
Korea International Exhibition Center (KINTEX), the largest exhibition and convention center in Korea, reached the break-even point in just five years, posting its first surplus.
The first surplus in five years of opening is very encouraging, in that most exhibition centers around the world reach the point in ten years.
KINTEX said on February 24th that it recorded the sales of KRW 24 billion, the ordinary income of KRW 6.07 billion, the depreciation cost of KRW 6 billion, and the net income of KRW 7 million, resulting in its first surplus after it started the operation.
KINTEX was opened in April 2005, and its sales has risen every year from KRW 15,716 million in 2006, KRW 18,477 million in 2007, KRW 21,136 million in 2008, KRW 23,503 million in 2009, to KRW 24,01 million in 2010.
Also, its net income was generated after its net loss has gradually decreased from KRW 7,195 million in 2006, KRW 6,771 million in 2007, KRW 5,885 million in 2008, to KRW 1,161 million in 2009 despite the annual depreciation cost of KRW 6 to 7 billion.
KINTEX has attributed its early surplus to its aggressive efforts to attract exhibitions and conventions and profitable businesses such as long-term cultural exhibitions and international events.
Especially, KINTEX has cut costs by integrating exhibitions while generating synergy effects. Large and medium international events have contributed to increasing global competitiveness of KINTEX.
KINTEX held 62 exhibitions, 41 events, and 43 conventions with the operating rate of 58%, the best performance ever.
The Center plans to achieve the sales of KRW 60 billion in 2015 by opening up its second exhibition hall this September and maintaining the current momentum, and make itself established as ‘a surplus exhibition center’ with the operating rate of 60%.
KINTEX CEO Han Jun-u said, “We have focused on core businesses to increase sales and reduce costs, successfully achieving surplus faster than other exhibition centers.” He added, “This year, we will open the second exhibition center and maximize the operating rate to raise the added value of the exhibition and convention industry.”
