IPO for Hankook subsidiary Model Solution

Last week, a subsidiary of tyre maker Hankook & Company Group (formerly Hankook Tire Group) became the first Korean prototype company to be listed on the KOSDAQ technology index. Model Solution joined the index with a final issue price of KRW 27,000 (£16.71), which was at the upper end of the announced price range. With the IPO, Model Solution raised approximately KRW 27 billion (£16.7 million).

Founded in 1993 and acquired by Hankook & Company in 2018, Model Solution is a total solution provider that serves all product development stages from design to prototyping, precision computer numerical control (CNC) machining, tooling and moulding, and contract manufacturing for various sectors including electronics, medical devices, consumer goods, robotics and the automotive industry. The company already serves more than 500 customers worldwide, including Google, Amazon, Tesla, Samsung and Hyundai Motors.

Through the IPO, Model Solution plans to secure stable long-term growth and make a quantum leap to the forefront of its industry as an innovative manufacturing company. The company initially plans to develop its own hardware brand. This will include pilot testing of the augmented reality head mounted display prototype developed over the past year, to be followed by the start of series production and the market launch.

“In order to stay ahead of industry trends, we will continue to expand our business portfolio by employing new business models and integrating the latest technologies such as augmented reality into our products. We are also preparing to secure customers in new fields such as medical devices, robotics and aerospace,” says Byungil Woo, chief executive officer of Model Solution.

Model Solution has three business locations and one global sales base. These include the two existing operation facilities for prototype production in Seoul, the integrated operation centre for tooling and moulding and contract manufacturing in Bucheon, and the North American sales base in Silicon Valley. In addition, the company is planning to set up new sales bases in the eastern USA and Germany to expand its global market presence.