Daedong Group’s three listed companies, Daedong, Daedong Gear and Daedong Metal, disclosed a value-up plan on May 7 aimed at reaching combined revenue in the 5 trillion won range by 2030, based on a shift to agricultural physical AI.

In the plan, Daedong presented a strategy to shift from a one-off equipment sales model to an AI-based recurring revenue model. Daedong is the company that first supplied finished agricultural machinery such as tractors, combines and rice transplanters in South Korea. Together with Daedong Gear and Daedong Metal, it has built vertical integration in key powertrain parts including transmissions, gears and engine castings.

At the group level, Daedong is pursuing a “subscription-type AI agriculture service” model that collects and trains agricultural data through AI-based autonomous farming machinery and agricultural robots, and continuously upgrades equipment performance via OTA wireless software updates.

It is also combining an “AI agriculture agent service” that spans open-field precision agriculture and greenhouse smart farming. The plan aims to raise the share of revenue from new businesses to 25.9 percent in 2030 from 11.9 percent in 2025.

It will also expand its global dealer network. It plans to secure at least 1,000 dealers in North America and more than 700 in Europe by 2030. Daedong set a 2030 consolidated revenue target of 35.9 trillion won and also presented targets of price-to-earnings ratio of 10 times, price-to-book ratio of 2 times and return on equity of 20 percent.

Daedong Gear will shift its electric vehicle parts business from a single-item focus to a module and system focus, while newly entering the business of core robot parts such as reducers and actuators. It set a 2030 target of 1 trillion won in revenue and an ROE of 8 percent, while expanding the share of external customers and pursuing strategic investments in parallel.

Daedong Metal will broaden its business scope beyond its existing casting operations for agricultural machinery, automobiles and construction equipment to include key components for vacuum pumps used in semiconductor processes and high-precision casting parts for defense and ship engines. It will also foster an advanced materials business based on heat-dissipating, flame-retardant and eco-friendly composite materials, targeting materials markets for AI data centers, electric vehicles, and electrical and electronic applications. Its 2030 revenue target is 240 billion won.

On shareholder returns, all three listed companies decided to gradually raise their payout ratios to around 20 percent by 2030. The company said it will boost investor trust by clearly presenting a mid- to long-term dividend policy, noting that it has maintained consecutive dividend payments for 32 years at Daedong, 24 years at Daedong Gear and 30 years at Daedong Metal.

It will also overhaul its investor relations system. The company said it will build a C-level-led IR structure, expand investor briefings at home and abroad, and strengthen English-language disclosures.

Youngjoong Na (나영중), vice president of group management at Daedong, said the value-up plan is an execution strategy for the group’s key affiliates to shift to an AI and robot-focused recurring revenue business structure and a profitability-centered system, based on its agricultural physical AI strategy. He said it will continue to raise corporate value through a virtuous cycle that links results created by stronger business competitiveness to shareholder returns.