Hankook Tire & Technology reports increasing its revenue and operating profit in Q2 2023 despite a difficult business environment. Revenues were up 11 per cent year-on-year to KRW 2.2634 trillion (£1.37 billion, US$1.77 million), and operating profit jumped 41.6 per cent to KRW 248.2 billion (£150.41 million, $194.0 million). At 11.0 per cent, operating margin was 2.4 percentage points higher than in Q2 2022.
Further legal issues for Hankook Tire & Technology chairman Cho Hyun-bum, with prosecutors seeking to combine the two charges against him into a single indictment. Cho, who was indicted without detention on 21 July for breach of trust, is already on trial for allegedly embezzling approximately 20 billion won (£12.1 million).
Nexen Tire has joined the United Nations Global Compact (UNGC), an international initiative for sustainable and responsible corporate management. By signing on to the UNGC, the Korean tyre maker commits to aligning its actions with ten sustainability principles and pledges to contribute to the UNGC’s Sustainable Development Goals.
By 25 April, Hankook Tire & Technology had received more than 2,000 complaints from local residents, businesses and farmers related to the fire that broke out at its Daejeon tyre plant on 12 March. In a statement issued today, the company indicates its intention to provide compensation as soon as possible for those complaints that are “closely related to the fire incident and can be proven.” Hankook Tire is also engaged in clean-up activities and repairing public facilities in order to “restore daily life” in the local area.
While tyre retail sales volumes in Russia reportedly declined 16% year-on-year in Q1 2023, to 3.2 million units, sales value dropped 42%. The growing popularity of lower-priced tyres partially explains this larger decrease in turnover, and imports from China and Korea rose significantly. An expert from one association nonetheless still recommends European tyres, even though they’re hard to find and expensive.
Arrested on 6 March 2023, Hankook Tire & Technology chairman Cho Hyun-bum has now been indicted on charges of illicit inter-affiliate trading, embezzlement and breach of trust.
Hankook Tire & Technology has become a KRW 3 billion (£1.9 million) pre-Series A investor in South Korean used car e-commerce platform ‘Carmerce’. The tyre maker and start-up signed an investment contract at Hankook & Company’s headquarters on 28 February.
Hankook Tire is set to reduce costs and wastage in its production facilities thanks to a research collaboration with Korea Atomic Energy Research Institute and HM3DP, a 3D printing start-up. Working with these partners, Hankook has developed ‘Damaged Parts Restoration 3D Printing Technology’, which it will use to restore titanium alloy blades that are damaged while cutting tyre rubber during the production process.
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.
The family ownership of Hankook Tire and Technology must pay a fine of KRW 4.59 billion (£2.9 million) after losing a lawsuit related to foreign assets. Seoul-based publication The Korea Herald writes that the Seoul Administrative Court recently ruled against the lawsuit brought by Cho Yang-rae, honorary chairman of Hankook & Co., and his eldest son Cho Hyun-sik.
First presented at the SEMA show in Las Vegas back in 2014 and subsequently launched in Europe and dozens of other markets, Laufenn is Hankook Tire’s second brand. After introducing Laufenn to the world, Hankook is now bringing the brand home and offering it in South Korea for the first time. By debuting Laufenn locally, the tyre maker aims to “further accelerate” its domestic market penetration with a multi-brand strategy that satisfies “the diverse tastes of consumers.”
A memorandum of understanding (MoU) between Michelin and Hyundai Motor Group will facilitate the development of a new generation of tyres optimised for electric vehicles (EVs). The three-year agreement, a follow-up to the partnership of November 2017 that resulted in an exclusive Michelin tyre for the Hyundai Ioniq 5, covers joint work on tyres containing an increased level of eco-friendly materials, tyres optimised for next-generation EVs as well as a real-time tyre monitoring system for autonomous vehicles.
South Korean tyre makers can once again compete head-to-head on the baseball field, with Kumho Tire resuming its sponsorship of the Kia Tigers after a four-year hiatus. It joins Hankook Tire, sponsor of the Doosan Bears, in the top-level KBO League.
Professors from two South Korean universities have collaborated with Nexen Tire to develop a technology that utilises artificial intelligence (AI) technology to predict tyre performance. The resulting application employs machine learning technology during the tyre concept design stage to more quickly and precisely anticipate real-world properties such as fuel efficiency, noise and handling characteristics.
Hankook Tire & Technology is collaborating with Korean sportswear brand Prospecs to release a series of running shoes with enhanced grip in wet and wintry conditions. Prospecs provides this extra traction by utilising the tread pattern from the Hankook Kinergy 4S2 all-season tyre on the trainers’ soles.
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