대동 DAEDONG

-. The subscription rate among existing shareholders reached 83.13%, with a total of KRW 40.3 billion secured for future businesses through the paid-in capital increase.

-. The funds will be invested in EV/HEV parts production facilities to fulfill cumulative orders worth KRW 1.9 trillion, as well as in the robotics business.

-. Electric vehicle parts revenue is projected to roughly triple from approximately KRW 27 billion in 2026 to at least KRW 75 billion in 2027.

 

Daedong Gear’s public offering of unsubscribed shares attracted subscriptions for more than 95 times the number of shares available.

 

Daedong Gear (CEO Seo Jong-Hwan), Daedong Group’s powertrain specialist, announced on July 29, 2026, that the public offering of unsubscribed shares under its paid-in capital increase, held from July 23 to 24, 2026, recorded a subscription rate of 9,563% and a subscription ratio of 95.63:1.

 

The public offering covered 972,846 unsubscribed shares remaining after the subscription period for existing shareholders on July 20–21, 2026. The subscription rate among existing shareholders reached 83.13%, and the final offering size was set at KRW 40.3 billion based on the finalized issue price. Through this paid-in capital increase, the company will issue 5,767,800 new shares at KRW 6,980 per share. The new shares are scheduled to be listed on August 11, 2026.

 

The proceeds will be used to expand production facilities for the mass production of electric vehicle and hybrid electric vehicle (EV/HEV) parts, develop core robotic drive components such as robot reducers and actuators, and establish the infrastructure for the robotics business. Approximately KRW 33 billion will be allocated to expanding production facilities, with the remainder going toward the core robotic drive components business and strengthening its operating base.

 

 

Daedong Gear has built a cumulative order backlog worth KRW 1.892 trillion since 2024 and is accelerating efforts to establish a mass-production system that will translate these orders into stable revenue and profit. The company is building a total of 20 new production lines for electric vehicle parts to be supplied to Hyundai Transys and other customers, with more than 80% completed as of H1 2026. It plans to complete the production lines by the end of the year and begin full-scale mass production.

 

Electric vehicle parts revenue is therefore projected to roughly triple from approximately KRW 27 billion in 2026 to at least KRW 75 billion in 2027. Through this investment, Daedong Gear aims to accelerate the conversion of its order backlog into revenue while establishing a production system capable of accommodating additional new orders.

 

The company will also expand investment in research and development of core robotic drive components, including robot reducers and actuators, and in establishing the infrastructure for this business, drawing on its existing reducer design and precision machining technologies. Its strategy is to shift its business from a focus on internal combustion engine vehicle parts toward parts for next-generation vehicles and advanced robots.

 

Daedong Gear is also pursuing a bonus issue alongside the paid-in capital increase to protect existing shareholders’ rights and interests and enhance shareholder value. The company plans to allot 0.3 new shares free of charge for every share held by existing shareholders. The bonus shares are scheduled to be listed on August 24, 2026.