Automobile parts corporation SAMHYUN has acquired AI robotics corporation CaseLab. Last year, SAMHYUN recorded sales of 100.4 billion won and plans to expand its territory beyond its existing automobile and defense parts business into advanced robotics.
Domestic small and medium-sized corporations have embarked on securing new growth engines amid crisis. They are either acquiring corporations or venturing into new businesses based on research and development. They are also expanding their territory by exploring new overseas markets.
◇ Corporate acquisitions and new business ventures through R&D
M&A is considered a key strategy for corporate growth. Corporations can enter targeted markets instantly by acquiring other corporations. A notable example is Samsung Electronics, which acquired FläktGroup to target the AI infrastructure market. Recently, Hanwha Group also entered the meal service market by acquiring OURHOME, the second-largest company in the domestic meal service industry.
This is also true for medium-sized corporations. Woongjin, with sales of 1.08 trillion won, signed a stock purchase agreement with private equity fund operator VIG Partners to acquire Fried Life, the number one company in the domestic bereavement service sector, on the 6th. Woongjin aims to enter the bereavement service market to regain the glory it had in the 2010s when it ranked 30th in terms of sales.
There are also medium-sized corporations that have grown into 'large corporate groups' through M&A. DN AUTOMOTIVE, recognized as one of the top three in the global automotive vibration damping parts market, acquired Doosan Machine Tools (currently DN Solutions) in 2022, officially entering the Fair Trade Commission's list of large corporate groups (with total assets exceeding 5 trillion won). It currently ranks 74th in terms of revenue.
Entering new businesses through research and development is also a growth strategy for medium-sized corporations. This focuses on strengthening the company's own technology and capabilities rather than acquiring external corporations through M&A.
MCNEX, a medium-sized manufacturer of camera modules, has recently sought to strengthen its vehicle semiconductor module packaging business. It aims to lead the domestic and global markets for mobile phone and automotive camera modules through the SIP (System in Package) business that integrates system semiconductors, memory semiconductors, and power semiconductors into one package.
Since 2022, MCNEX has initiated research and development related to vehicle semiconductor module packaging, including surface mount technology (SMT), and has established a production line at its Vietnam factory. Last year, MCNEX recorded sales of 1.057 trillion won, targeting 200 billion won in its vehicle semiconductor module packaging business.
S&I Corporation, a comprehensive real estate management medium-sized corporation, has embarked on strengthening its new business through AI technology development. Last year, it also collaborated with Amazon Web Services (AWS) to enhance its technology, including SaaS (Software as a Service).
This company, which was spun off from LG Group in 2022, focuses on facility management (FM) services and recorded sales of 851.2 billion won last year. It is actively targeting the real estate asset management (PM) and leasing management (LM) markets through AI-based optimal rent analysis, real-time vacancy rates, and market price information.
◇ Exploring overseas markets... responding to U.S. tariff impacts
Daedong, a manufacturer of agricultural machinery, started a market survey in the U.S. earlier this year. This is to analyze the market conditions, including price increases of competing brands like John Deere and Kubota due to the basic 10% tariff and additional tariffs on specific items.
A Daedong representative noted, "We plan to strengthen our business in the North American and European markets while observing competitors' price increases and tariff responses." Daedong recorded sales of 1.4155 trillion won last year, with 65.3% of its sales coming from overseas markets, including the U.S. and Europe.
Like large corporations such as Hyundai Motor, which is expanding production at its electric vehicle factory in the U.S., and SK On, which is promoting the expansion of battery production facilities in North America, medium-sized corporations are also considering building production facilities in the U.S.
KD Navien, a mid-sized boiler manufacturer, is considering building a boiler and water heater factory on land acquired in Virginia, covering an area of 82,644 square meters (about 25,000 pyeong), during the first term of the Trump administration. This site is currently used as KD Navien's logistics warehouse.
Out of last year's sales of 1.35 trillion won, KD Navien generated about 70% from overseas. The main markets are the U.S., China, and Russia, and it currently has production facilities in both Korea and China.
A KD Navien representative stated, "This was reviewed under the premise that the impact from U.S. tariffs has been significant," and noted, "We are currently keeping a close eye on the tariff policies of the Trump administration."