대동 DAEDONG

-. Secured KRW 1.7 trillion in cumulative orders across 2024 and 2025, with EV and HEV programs accounting for approximately 78 percent, reflecting a successful portfolio transformation

-. EV and HEV production facilities completed, with related revenue projected to grow at an average annual rate of about 35 percent through 2032

-. Expands into robot components based on precision reducers and actuators in alignment with the Group’s robotics initiatives

 

Daedong Gear (CEO Suh Jong-hwan), Daedong Group’s subsidiary specializing in powertrain products, is preparing to begin mass production of core EV and HEV components while expanding into robotics, marking a decisive step in its evolution into a future mobility and robotics company. This year, EV component output will ramp up alongside development of robot components built on precision reducers and actuators, establishing mobility electrification and robotics as the company’s two primary growth drivers.

 

 

Backed by 53 years of precision machining expertise and close collaboration with parent company Daedong, Daedong Gear has built a strong track record supplying high quality powertrain components to agricultural equipment manufacturers and global automotive OEMs. Building on that foundation, the company has expanded from individual parts into higher value modules and put in place a dedicated production system for EV and HEV components. Orders secured in 2024 totaled approximately KRW 1.24 trillion, followed by KRW 460 billion in 2025, covering EV and HEV components, internal combustion engine vehicle parts, and key drive components for industrial equipment. Over the two year period, cumulative orders reached approximately KRW 1.7 trillion. Of that amount, approximately KRW 1.33 trillion, or 78 percent, relates to electric and next generation hybrid vehicle programs, underscoring the company’s accelerating shift toward a future mobility centered portfolio.

 

Growing orders are now feeding directly into revenue. EV components are expected to contribute approximately KRW 10 billion in sales in 2025, rising to around KRW 33 billion in 2026. Full scale deliveries of core EV and HEV components, including input and output gears, will begin this year. Based on programs secured in 2024 and 2025 alone, and assuming additional pre-orders materialize, EV and HEV revenue is projected to grow at an average annual rate of approximately 35 percent through 2032. 

 

To support continued expansion, Daedong Gear has invested approximately KRW 27 billion in EV production facilities and is reviewing plans for a new plant depending on future order momentum. A smart factory driven, zero defect mass production system is being finalized to further strengthen quality performance and enhance competitiveness in securing additional contracts. Investment will also increase in global sales capabilities, in house component design expertise, and manufacturing AX initiatives aimed at raising quality and operational excellence. 

 

The company is making progress in advanced manufacturing as well. A clear example is the EV module program it secured last year from a global automotive OEM. Unlike standalone parts, modules are complex, high precision assemblies that integrate multiple components and “sub-assemblies,” requiring proven capability in advanced manufacturing, quality assurance, and process stability. To support this program, a clean room was completed at the new plant earlier this year, with mass production scheduled to begin within the year.

 

At the same time, Daedong Gear is accelerating development of robot components as a next wave of growth. As Daedong accelerates its transition into an AI and robotics company, Daedong Gear has joined the Group’s robotics projects and built development expertise in reducers, a critical component in robotic systems. A prototype robotic actuator is currently under development, with completion targeted for the first half of the year. The company plans to initiate supply discussions with leading robotics companies in Korea and overseas. Internalizing reducer production is expected to deliver meaningful cost advantages and serve as a key differentiator in the robotics components market.

 

 

Meanwhile, Daedong Gear continues expanding its global footprint in its core agricultural and industrial machinery businesses. The company recently secured a KRW 71 billion long term contract to supply agricultural transmissions to Company A, one of the world’s top three agricultural equipment manufacturers. The agreement marks its first major transaction with an overseas agricultural OEM and provides a platform for expanding its international presence and strengthening global partnerships. New orders are also increasing in industrial mobility segments such as excavators and forklifts, further reinforcing a stable and diversified revenue base.