Daedong Metal Incorporates Hydrotech... Establishes 'Casting and Hydraulic' Growth Framework

Completion of 9 Billion Won Paid-in Capital Increase and New Share Listing

Daedong Metal announced on the 17th that it has completed the listing of new shares worth approximately 9 billion won through a paid-in capital increase and incorporated Hydrotech, a hydraulic component and system specialist, as a consolidated subsidiary.

On August 12, 2026, Daedong Metal’s board of directors decided on a third-party allocation of paid-in capital exclusively to its largest shareholder, Daedong, as well as the acquisition of Hydrotech shares. On August 26, Daedong Metal received payment of about 9 billion won for the capital increase and completed the acquisition of 94.7% of Hydrotech shares. The 3 million new shares acquired by Daedong were listed on September 17, 2026, and will be under a one-year lock-up period.

An employee of Daedong Metal is performing the pouring operation, pouring molten metal into the mold at the casting factory. Daedong Metal

Reflecting the paid-in capital increase, Daedong Metal’s equity capital rose from approximately 43.5 billion won to about 52.5 billion won. Hydrotech develops and manufactures hydraulic components and systems used in agricultural and industrial equipment, and recorded sales of 21.5 billion won last year. Through this acquisition, Daedong Metal plans to pursue a 'casting and hydraulic' dual-track business by adding hydraulic components and systems as a new growth pillar to its existing casting materials and parts business. By combining Daedong Metal’s casting and mass production capabilities and its industrial equipment customer base with Hydrotech’s abilities in hydraulic component development, production, and system design, the company aims to expand supply items for existing customers as well as identify new customers and products.

Daedong Metal recorded sales of about 51 billion won in the first half of this year. The company plans to surpass its value-up target of 113.4 billion won in annual sales by expanding high-value parts orders in its existing casting business for the semiconductor and shipbuilding sectors, and by incorporating Hydrotech as a consolidated subsidiary. Lee Poongwoo, CEO of Daedong Metal, said, "We will expand the range of products supplied to agricultural and industrial machinery customers of both companies, and in the mid to long term, identify new business opportunities in high-value industries such as robotics and mobility."

This content was produced with the assistance of AI translation services.