대동 DAEDONG

-. Orders equal 119% of last year’s revenue, with KRW 138.5 billion in EV parts contracts from Hyundai Transys driving momentum in electrification

-. Customer base expands with KRW 71.8 billion in orders from Company A, the world’s third-largest agricultural machinery maker, and KRW 52.5 billion in excavator parts orders from construction equipment maker Company D

-. Order backlog since 2024 reaches KRW 1.8644 trillion, as Daedong Gear targets at least KRW 500 billion in orders this year

 

Daedong Gear (CEO Seo Jong-hwan), Daedong Group’s subsidiary specializing in powertrain products, announced on June 14 that it secured KRW 262.8 billion in core component orders in the first half of the year from major customers including Hyundai Transys, Company A, the world’s third-largest agricultural machinery manufacturer, and Company D, a leading Korean supplier of key construction equipment components. The orders amount to about 119% of the company’s 2025 annual revenue of approximately KRW 220.9 billion. Revenue will be recognized sequentially as individual purchase orders (POs) are issued.

 

 The orders are particularly meaningful as they were secured across a balanced mix of industries, including agricultural machinery, electric vehicles (EVs) and construction equipment. Daedong Gear is working to diversify its global customer base through a business portfolio that is not concentrated in any single industry, while accelerating its shift toward electrification. Backed by its technological competitiveness and steady order momentum, Daedong Gear recorded a cumulative order backlog of KRW 1.8644 trillion from January 2024 to May 2026.

 

 

Daedong Gear first secured a contract from Hyundai Transys to supply Output Shaft Ass’y components for electric vehicle (EV) reducers. The contract is valued at approximately KRW 138.5 billion, with supply scheduled to run for eight years from 2027. The components are expected to be used in a total of 3.24 million vehicles. Daedong Gear plans to carry out pilot production in November this year and begin full-scale mass production in April 2027.

 

 The company will also supply three types of tractor gearboxes to Company A, the world’s third-largest agricultural machinery manufacturer. The products will be applied to Company A’s tractors and are expected to generate approximately KRW 71.8 billion in revenue over seven years. Sample orders are currently underway, with mass production supply targeted for the second half of 2027. Full-scale revenue is expected to begin in the same period.

 

 The order from Company A is especially meaningful because it marks Daedong Gear’s first supply contract with an overseas agricultural machinery manufacturer. Since CEO Seo Jong-hwan, a global sales and marketing expert, took office last year, Daedong Gear has been stepping up its overseas business activities and expanding its customer base to top-tier global agricultural machinery companies.

 

 The order is also expected to help improve profitability, as mass production can be handled using existing production facilities without new capital investment. According to Daedong Gear, the contract will allow the company to demonstrate its development capabilities, quality and price competitiveness in the global market.

 

 Daedong Gear secured a contract from Company D, a leading Korean construction equipment parts company, to supply reducers for compact excavators. The contract will run for six years from 2026 and is expected to generate approximately KRW 52.5 billion in revenue. With this order, Daedong Gear is further expanding its supply track record beyond agricultural machinery and electric vehicle parts into the construction equipment sector.

 

 In the second half of the year, Daedong Gear is in discussions for additional supply projects worth approximately KRW 300 billion in the electric vehicle and agricultural machinery sectors. Based on these projects, the company aims to secure at least KRW 500 billion in new orders this year. If they proceed as planned, annual cumulative orders are expected to reach around KRW 570 billion.

 

Meanwhile, Daedong Gear is also pursuing entry into core robot components, including reducers and actuators, in connection with the Group’s robotics business. Building on its existing expertise in powertrains and precision gear machining, the company plans to expand into core robot drive components and strengthen its foundation for mid- to long-term growth.