#South Korea #Seoul #automotive technology #Hankook Group #Hanon Systems

Hankook & Company Group Completes Acquisition of Hanon Systems

On January 6, 2025, Hankook & Company Group, led by Chairman Cho Hyun-Bum, announced the completion of its acquisition of Hanon Systems, recognized as the world's second-largest provider of thermal management solutions for the automotive sector. This strategic move is a significant step in establishing Hankook as a comprehensive supplier of automotive parts, particularly in the context of growing global demand for electric vehicle (EV) technologies.

A Decade in the Making

The roots of this acquisition stretch back a decade when Hankook first became a shareholder of Hanon Systems in 2014 by acquiring a 19.4% stake. Following this initial investment, the Group increased its holding by purchasing 144,962,552 new shares during a rights offering and subsequently acquiring an additional 122,774,000 shares from Hahn Company in early January 2025. These transactions positioned the Hankook & Company Group as the majority stakeholder with a 54.77% ownership interest.

This acquisition not only allows Hanon Systems to operate as a subsidiary of Hankook under Korean corporate regulations but also enhances the Group's global assets to approximately KRW 27 trillion. This listing places it among South Korea's top 30 corporations by net asset value.

Enhancing Core Portfolios

Hanon Systems, originally established in 1986 as Halla Climate Control, has evolved into a premier supplier of automotive thermal and energy management systems. Over the years, it has undergone several name changes and repositions, ultimately becoming Hanon Systems in 2015, after significant investments from Hankook Tire Technology and Hahn Company.

The acquisition is viewed as a crucial integration of core technology sectors—tires, batteries, and thermal management—under the Hankook banner, helping the Group solidify its status in the automotive market, especially in relation to cutting-edge electric vehicle solutions. Hanon Systems' expertise in thermal management is particularly vital for optimizing battery performance in EVs, making it an essential component of the future automotive landscape.

A Future-Focused Approach

As part of its post-acquisition strategy, Hankook intends to create synergies through enhanced resource and technology integration. The Group plans to leverage its existing global sales network and enhance supply chain management capabilities by consolidating operations under a unified framework. This includes improving operational efficiencies via a streamlined IT infrastructure and promoting a cohesive corporate culture rooted in its established 'Proactive Culture.'

A representative of Hankook stated, "This landmark acquisition completes our core mobility portfolio, positioning us as a global leader in the high-tech automotive sector. We are committed to maximizing the synergetic advantages that come with Hanon Systems' robust capabilities and resources."

Leadership Transition

To ensure a smooth integration process, Hanon Systems convened an extraordinary general meeting on January 3, 2025, appointing Soo Il Lee as its new CEO. Mr. Lee is a seasoned executive with a tenure of 37 years at Hankook, having held key positions such as Head of Marketing and President CEO. His appointment is seen as pivotal in aligning Hanon Systems with Hankook's strategic vision, capitalizing on his profound understanding of the Group's successful modalities.

With this acquisition, Hankook & Company Group is poised to lead in the automotive industry of tomorrow, leveraging decades of expertise and a commitment to innovation within the rapidly changing mobility landscape. The integration of Hanon Systems is anticipated to accelerate growth and position the Group favorably in the competitive automotive market.