Daedong Gear to Pursue Paid-in and Bonus Capital Increases to Fund EV and Robotics Parts Business
Daedong Gear to Pursue Paid-in and Bonus Capital Increases to Fund EV and Robotics Parts Business
-. Funding to support Daedong Gear’s shift from internal combustion vehicle parts to electric vehicle and advanced robotics components
-. Proactive investment planned for mass production of parts backed by secured orders worth approximately KRW 1.7 trillion
-. Investment also planned to build the company’s robotics business foundation, including core robot drive component development and a dedicated organization
Daedong Gear (CEO Seo Jong-hwan) announced on April 23, 2026, that it will carry out both a paid-in capital increase and a bonus issue to strengthen its mass-production system and robotics parts development capabilities, supporting its shift toward future mobility and robotics while also enhancing shareholder value.
The paid-in capital increase will be conducted through a rights offering to existing shareholders, followed by a public offering of any unsubscribed shares, with the goal of raising approximately KRW 80 billion. The company will also carry out a bonus issue equivalent to 30% of its common shares. The record dates for share allocation are June 12 for the paid-in capital increase and August 4 for the bonus issue. The new shares are scheduled to be listed on August 11 for the paid-in capital increase and August 24 for the bonus issue. The proceeds will be used to ▲ expand production facilities for future mobility components ▲ stabilize the company’s operating base ▲ build the foundation for its robotics business.
Daedong Gear has grown on the strength of its expertise in precision drive components, including agricultural machinery transmissions and automotive gears. More recently, as electric and hybrid vehicles gain momentum, the company has been positioning core drivetrain components for future mobility as a new growth driver. Since January 2024, Daedong Gear has secured approximately KRW 1.7 trillion in orders for electric and hybrid vehicle components, building a foundation for mid- to long-term growth.
To support these orders, the company plans to invest KRW 50 billion from the paid-in capital increase in production facilities for future mobility components. Some of the orders secured in 2024 and 2025 are expected to begin contributing to sales this year following the first phase of facility investment. The new investment will build on that initial phase and further expand production capacity.
The investment will be made in phases starting in the second half of 2026. It will focus on mass-production equipment for key electrified powertrain components used in electric and hybrid vehicles, including rotor shafts, output shafts, differential gears, carriers, and differential assemblies. The new facilities are expected to begin full-scale operations in 2027, with revenue contributions expected to emerge gradually beginning in the first half of the year.
In the automotive parts industry, securing orders is only the beginning. Companies must also invest upfront in process development, quality validation, and production facilities before mass production can begin, making timely investment critical. Daedong Gear plans to meet these industry demands while accelerating its shift into robotics by developing core components for advanced robots, including reducers and actuators, based on its existing reduction gear and precision machining technologies. At the group level, Daedong is also expanding its agricultural robotics business based on agricultural physical AI technologies. In parallel, Daedong Gear plans to make strategic investments to strengthen its robotics hardware capabilities and establish an early foothold in the robotics market.