Hankook Tire & Technology: Leading the Future of Mobility

Quick Facts / Company Snapshot

• Company Name: Hankook Tire & Technology Co., Ltd.
• Holding Company: Hankook & Company Co., Ltd.
• Group Chair & CEO: Hyunbum Cho
• 2024 Consolidated Sales (Hankook Tire): KRW 9,411.9 billion
• 2024 Operating Profit (Hankook Tire): KRW 1,762.3 billion
• 2024 EBITDA (Hankook Tire): KRW 2,277.3 billion
• 2024 Net Income (Hankook Tire): KRW 1,131.1 billion
• Global Sales Breakdown (Europe): 42.1%
• Global Sales Breakdown (Americas): 21.0%
• High-Inch Tire Revenue Share: 50.4% (Net AMT basis)
• Global Network: 8 Production Plants, 5 R&D Centers
• Employees (R&D): 1,054 personnel
• Patents Held (Global): 870 (586 in Korea, 284 Overseas)
• Key EV Brand: iON
• Key Acquisition: Hanon Systems (Incorporated in 2025)
• Headquarters: Technoplex, Pangyo, Korea

Company Overview

Hankook Tire & Technology is a global leader in the tire industry and the core affiliate of the Hankook & Company Group. Since its inception in 1941 as Korea’s first tire company, it has evolved into a high-tech mobility enterprise. The company is dedicated to bringing the “future imagined by customers to life” through a mission defined as “Future Innovated, Innovation Realized”.

Operating under a holding company structure since April 2021, Hankook Tire & Technology focuses on agile decision-making and securing future growth drivers. The company’s philosophy centers on a “First Mover” strategy, which prioritizes proactive investment in research and development (R&D) and premium brand value, even amidst global economic turbulence. This approach has enabled the company to achieve its highest performance since inception in 2024.

The organization is deeply committed to “Sustainable Innovation,” a core value that drives its operations from product development to social responsibility. By integrating data and AI-driven digital transformation into its manufacturing and R&D processes, Hankook aims to lead the future mobility landscape, including electric vehicles (EVs) and autonomous driving sectors. With the recent acquisition of Hanon Systems, the world’s second-largest thermal energy management company, the group has further solidified its status, ascending to the ranks of Korea’s top 30 conglomerates.

Business Segments and Revenue Breakup %

Hankook & Company Group operates a diverse business portfolio anchored by its tire business but extending into energy solutions, precision mechanics, and IT services.

Tire & Technology Segment

This is the primary revenue driver for the group. Hankook Tire & Technology manufactures and sells tires for passenger cars, light trucks, trucks, and buses.

• 2024 Sales: KRW 9,411.9 billion
• Operating Profit: KRW 1,762.3 billion
• Operational Scope: Production of over 100 million tires annually across eight global plants, serving over 160 countries.

Energy Solutions (ES) Business

Managed directly by the holding company, Hankook & Company, this segment focuses on the manufacture and sale of batteries.

• 2024 Sales (ES Business HQ): KRW 983.1 billion
• Operational Scope: Production of high-performance lead-acid batteries and AGM (Absorbent Glass Mat) batteries for automotive and industrial use. The division has a total production capacity of five million units following expansions in Tennessee and Korea.

Precision Works

Operated by Hankook Precision Works, this segment specializes in tire molds and precision manufacturing.

• 2024 Sales: KRW 82.6 billion
• Operational Scope: Manufacturing of tire molds, mold containers, and precision components utilizing advanced 3D printing technology.

Engineering Works

Operated by Hankook Engineering Works, this segment focuses on manufacturing equipment and automated systems.

• 2024 Sales: KRW 86.3 billion
• Operational Scope: Production of tire manufacturing equipment (cutting, molding, curing) and expansion into logistics automation and robotics.

Information Technology & Logistics

Operated by Hankook Networks, this segment provides IT solutions and logistics engineering.

• 2024 Sales: KRW 54.2 billion
• Operational Scope: Supply chain management (SCM) solutions, warehouse management systems (WMS), and logistics automation.

Prototyping & Solutions

Operated by Model Solution, this segment offers hardware platform services.

• 2024 Sales: KRW 68.0 billion
• Operational Scope: High-fidelity prototyping, rapid tooling, and injection molding for product development.

Automotive Services & Others

• Hankook Car & Life: Sales of KRW 9.6 billion in 2024. Focuses on imported vehicle maintenance and sales.
• Hankook Donggeurami Partners: Sales of KRW 7.6 billion in 2024. A standard workplace for employing persons with disabilities, providing laundry and bakery services.

History and Evolution

Hankook Tire & Technology’s history is a timeline of continuous expansion and technological advancement.

• 1941: Established as Korea’s first tire company.
• 1979: Completed the Daejeon Plant, a cornerstone of its manufacturing capabilities.
• 1982: Established the Central Research Center in Daejeon.
• 1999: Completed manufacturing plants in Jiangsu and Jiaxing, China, marking a significant entry into the Chinese market.
• 2008: Completed the Hungary Plant to serve the European market.
• 2016: Completed the Hankook Technodome, the company’s main R&D center designed to lead global technological innovation.
• 2017: Completed the Tennessee Plant in the US, expanding its footprint in North America.
• 2021: Transitioned to an operating holding company structure, launching Hankook & Company.
• 2022: Launched “iON,” the world’s first full lineup of tires exclusively for electric vehicles, and became the official partner for Formula E.
• 2024: Secured the exclusive tire supply contract for the FIA World Rally Championship (WRC) for 2025-2027 and achieved record financial performance.
• 2025: Acquired Hanon Systems, integrating it into the Hankook & Company Group to bolster future mobility capabilities.

Products and Services with Revenue Breakup %

Hankook Tire & Technology’s product portfolio is engineered to meet diverse market demands, with a strong emphasis on high-value segments.

Tire Products

The company provides a comprehensive range of tires for various vehicle types:

• Passenger Car (PCR) & Light Truck (LTR) Tires: This is the dominant category. High-inch tires (18 inches and above) are a critical revenue stream, accounting for 39% of total sales volume and 50.4% of sales revenue in 2024.
• Truck & Bus (TBR) Tires: Regional sales shares for TBR tires are distributed as follows: Americas (38%), Europe (29%), Korea (19%), Asia Pacific & Middle East-Africa (8%), and China (6%).
• Electric Vehicle (EV) Tires: Anchored by the iON brand, this segment saw a 134% year-over-year sales growth in 2024.

Service Solutions

• T’Station: A retail channel providing “All My T Service,” which includes digital maintenance records and O2O (Online-to-Offline) services.
• TBX: A membership service for commercial vehicle drivers, offering points and benefits for truck and bus tire purchases.

Battery Products (Hankook & Company)

• AGM Batteries: Premium batteries featuring X-Frame Plus technology for high performance and fast charging, catering to vehicles with Idle Stop & Go (ISG) systems.

Brand Portfolio with Revenue %

The group manages a strategic portfolio of brands to target different market segments effectively.

• Hankook: The flagship global premium brand. It encompasses sub-brands like Ventus (Ultra-high performance), Dynapro (SUV/Off-road), Kinergy (Eco-friendly/Standard), and Winter i*cept (Winter performance).
• iON: A dedicated brand for electric vehicles, featuring technologies like “i Sound Absorber” for low noise and specialized compounds for high torque. It is a key driver of the company’s “First Mover” strategy in the EV market.
• Laufenn: A global strategic brand launched in 2014, targeting smart and sensible drivers with a focus on simplicity and performance. It covers Passenger, SUV, and Light Truck segments.
• Kingstar: A regionally tailored brand offering optimized products like the “Road Fit” line.
• AtlasBX: A heritage battery brand under the ES Business Headquarters, known for its long-standing history in the Korean battery industry.

Geographical Presence and Region-wise Revenue %

Hankook Tire & Technology maintains a balanced global portfolio, reducing dependency on any single market.

Revenue Breakdown by Region (2024)

• Europe: 42.1%. The largest market for the company, supported by strong sales of high-inch and winter tires.
• Americas: 21.0%. A key market driven by the Tennessee plant’s operation and high demand for SUV/Light Truck tires.
• China: 16.0%. A strategic market with a high penetration of EV tires and 18-inch+ products (32% sales share).
• Korea: 11.3%. The domestic base, focusing on premium OE supply and replacement market leadership.
• Asia Pacific & Middle East-Africa: 9.7%. An emerging growth region showing strong year-over-year sales increases.

Manufacturing and Office Footprint

• Global Headquarters: Technoplex in Pangyo, Korea.
• Production Plants (8 Total):
  • Korea: Daejeon Plant, Geumsan Plant.
  • China: Jiangsu Plant, Jiaxing Plant, Chongqing Plant.
  • Europe: Hungary Plant (Rácalmás).
  • Americas: Tennessee Plant (Clarksville, USA).
  • Asia: Indonesia Plant (Bekasi).
• Technical Centers (5 Total): Hankook Technodome (Korea), China Technical Center, Europe Technical Center (Germany), America Technical Center (USA), and Hankook Engineering Lab (Korea).

Financial Performance Analysis

The 2024 fiscal year marked a historic high for Hankook Tire & Technology, demonstrating resilience and growth.

Consolidated Performance (Hankook Tire & Technology)

• Sales: KRW 9,411.9 billion (up from KRW 8,939.6 billion in 2023).
• Operating Profit: KRW 1,762.3 billion (up from KRW 1,327.9 billion in 2023).
• EBITDA: KRW 2,277.3 billion.
• Net Income: KRW 1,131.1 billion (up from KRW 728.8 billion in 2023).

Holding Company Performance (Hankook & Company)

• Sales: KRW 1,391.0 billion.
• Operating Profit: KRW 418.3 billion.
• Net Income: KRW 350.7 billion.

The company’s financial health is underpinned by the successful execution of its high-value product strategy, specifically the sales of tires 18 inches and larger, and the rapid expansion of its EV tire lineup.

Profit and Loss Analysis

Revenue

Revenue growth was driven by a mix of price optimization and volume growth in premium segments. The consolidated revenue of KRW 9.4 trillion represents the highest performance since the company’s inception.

Operating Profit

The operating profit margin improved significantly, reaching approximately 18.7% (calculated: 1,762.3 / 9,411.9). This profitability is attributed to the “First Mover” strategy, high brand value, and cost efficiencies.

Expenses

• Cost of Sales: KRW 5,943.9 billion.
• Selling and Administrative Expenses: KRW 1,705.7 billion.
• R&D Investment: The company maintains steady investment in R&D to support its “First Mover” capabilities, although specific expense line items for R&D are embedded within the broader expense categories in the summary tables.

Net Profit

Net profit for the year stood at KRW 1,131.1 billion, showing a robust increase from the previous year, driven by strong operating results and favorable non-operating income adjustments.

Balance Sheet Analysis

Assets

• Total Assets: KRW 15,849.7 billion.
• Current Assets: KRW 7,274.8 billion, including KRW 1,882.3 billion in cash and cash equivalents.
• Non-Current Assets: KRW 8,575.0 billion, reflecting substantial investments in property, plant, and equipment (KRW 4,692.7 billion).

Liabilities

• Total Liabilities: KRW 4,654.9 billion.
• Current Liabilities: KRW 3,687.1 billion, including trade payables and short-term borrowings.
• Non-Current Liabilities: KRW 967.8 billion.

Equity

• Total Equity: KRW 11,194.9 billion.
• Retained Earnings: KRW 7,354.4 billion, indicating a strong accumulation of profits over time.

Cash Flow Analysis

Operating Activities

• Net Cash Provided by Operating Activities: KRW 1,886.1 billion.
• This strong cash generation capability supports the company’s aggressive investment strategies and dividend payouts.

Investing Activities

• Net Cash Used in Investing Activities: KRW (2,610.4) billion.
• Major outflows included the acquisition of property, plant, and equipment (KRW 1,033.1 billion) and acquisition of investments in associates (KRW 602.5 billion), reflecting capacity expansion and strategic acquisitions.

Financing Activities

• Net Cash Provided by Financing Activities: KRW 182.1 billion.
• This includes net increases in borrowings to fund growth initiatives, partially offset by dividend payments of KRW 158.6 billion.

Management Discussion & Analysis (MD&A)

Operational Results & Market Environment

Management highlights that 2024 performance was achieved despite a “turbulent business landscape” marked by global economic headwinds. The success is attributed to the “First Mover” strategy and a relentless focus on premium brand value.

Future Outlook & Strategy

• 2025 Challenges: Management anticipates major shifts in the global economy, including protectionist trade policies in the US and stagnant EV demand, which may lead to a prolonged slowdown in the mobility industry.
• Strategic Response: The company plans to avoid complacency and stay “laser-focused” on becoming a global high-tech company. The acquisition of Hanon Systems is a key part of this strategy to strengthen the business portfolio.
• Market Focus: There is a strong emphasis on the Chinese market, with plans to expand supply to leading Chinese EV brands like BYD, Geely, and Leapmotor.

Board of Directors and Leadership Team

The company operates with a transparent governance structure comprising Executive Directors and Independent Directors.

Top Management

• Hyunbum Cho: Chairman & CEO, Hankook & Company; Chairman, Hankook Tire & Technology.
• Jongho Park: President & CEO, Hankook & Company.
• Sanghoon Lee: President & CEO, Hankook Tire & Technology (Head of Marketing HQ).
• Jongseon Ahn: President & CEO, Hankook Tire & Technology (Head of Management Innovation HQ).

Board Committees

The Board includes several specialized committees to ensure oversight:

• Audit Committee
• Non-Executive Director Nomination Committee
• Management Committee
• Internal Transactions Committee
• Sustainability Committee / ESG Committee.

Independent Directors

Notable independent directors include experts from academia and finance, such as Jaewan Bahk (Former Minister of Strategy and Finance), Sejin Min (Professor of Economics), and Yeongjae Kang (Partner at ENSL Partners).

Subsidiaries, Associates, Joint Ventures and Revenue %

The Hankook & Company Group comprises several key affiliates that contribute to its vertical integration and diversification.

• Hankook Tire & Technology: The core affiliate. 2024 Revenue: KRW 9,411.9 billion.
• Hankook Precision Works: Molds and machinery. 2024 Revenue: KRW 82.6 billion.
• Hankook Engineering Works: Automated equipment. 2024 Revenue: KRW 86.3 billion.
• Hankook Networks: IT and logistics. 2024 Revenue: KRW 54.2 billion.
• Hankook Car & Life: Automotive maintenance. 2024 Revenue: KRW 9.6 billion.
• Model Solution: Prototyping. 2024 Revenue: KRW 68.0 billion.
• Hankook Donggeurami Partners: Standard workplace for the disabled. 2024 Revenue: KRW 7.6 billion.
• Preciseley Microtechnology Corporation (PMC): An optical MEMS technology company acquired to boost tech capabilities.
• Hanon Systems: Acquired in 2025, adding thermal energy management capabilities to the group.

Physical Properties (Offices, Plants, Factories, etc.)

Hankook Tire & Technology operates a vast physical infrastructure to support its global operations.

Headquarters

• Technoplex: Located in Pangyo, Korea, serving as the global innovation hub.

Manufacturing Plants

• Korea: Daejeon Plant, Geumsan Plant.
• China: Jiangsu Plant, Jiaxing Plant, Chongqing Plant.
• Europe: Hungary Plant (Rácalmás).
• Americas: Tennessee Plant (Clarksville, USA).
• Asia: Indonesia Plant (Bekasi).

R&D Facilities

• Hankook Technodome: The main R&D center in Daejeon, Korea.
• Hankook Technoring: The largest tire proving ground in Asia, located in Taean, Korea.
• Regional Technical Centers: Located in Hannover (Germany), Uniontown (USA), and Jiaxing (China).

Segment-wise Performance

High-Value Tire Segment

The strategy to focus on high-inch tires is yielding significant results.

• Performance: High-inch tires (18 inches+) grew by 108% year-on-year in volume.
• Revenue Contribution: This segment now accounts for 50.4% of total revenue.

Electric Vehicle Tire Segment

The “iON” brand has driven explosive growth in this niche.

• Performance: EV-exclusive tire sales increased by 134% in 2024.
• Regional Highlights: EV tire sales doubled in the Middle East and Africa region compared to the previous year.

Founders

While the current leadership is headed by Chairman Hyunbum Cho, the company was originally founded in 1941 as Korea’s first tire company. The report highlights the current executive leadership rather than providing a biography of the original founders.

Shareholding Pattern

• Total Equity Attributable to Owners of the Parent: KRW 11,100.4 billion.
• Share Capital: KRW 61.9 billion.
• Dividend Payout: The company paid dividends amounting to KRW 158.6 billion in 2024.
• Shareholding Structure: Specific percentage breakdowns for promoters and institutions are not detailed in the snippets, but the equity structure shows a dominant parent ownership.

Parent

Hankook & Company Co., Ltd. is the parent holding company. It transitioned to an operating holding company in 2021 to streamline management and facilitate future investments. It directly manages the ES (Energy Solution) Business Headquarters and oversees the strategic direction of the entire group.

Investments and Capital Expenditure Plans

R&D Investment

Hankook Tire & Technology maintains steady investment in R&D to secure technological leadership.

• R&D Personnel: 1,054 employees dedicated to research.
• Focus Areas: Virtual design, digital twins, AI-driven tire pattern creation, and sustainable materials.

Capital Expenditure (Capex)

• Tennessee Plant Expansion: The company is expanding its US plant to add an annual capacity of one million TBR (Truck & Bus Radial) units. Production is targeted to start in the second half of 2025.
• Acquisition: The acquisition of Hanon Systems represents a major strategic investment to diversify into thermal energy management for EVs.

Future Strategy

The company’s future strategy is anchored in “S.T.R.E.A.M”—a portfolio direction for future growth.

• EV Leadership: To become the top OE brand for electric vehicles, supplying brands like BYD, Geely, and Tesla.
• Digital Transformation: Centering operations on Data and AI to improve manufacturing efficiency and product development speed.
• Sustainability: Achieving Net Zero by 2050 through the use of sustainable materials (aiming for 100% renewable/recycled materials) and reducing greenhouse gas emissions.
• Market Expansion: Active targeting of the Chinese EV market and emerging markets in the ASEAN region.

Competitive Landscape

Hankook Tire & Technology competes on a global stage with top-tier tire manufacturers.

• Peers: The report mentions competing alongside top global tire brands in motorsports and OE supply. It specifically notes partnerships with premium automakers like BMW, Mercedes-Benz, Audi, and Porsche, positioning itself in the same premium tier as traditional western competitors.
• Emerging Threats: The report explicitly mentions the “rapid ascent of Chinese automakers” reshaping the competitive landscape.

Key Strengths

• Technological Prowess: Possession of proprietary technologies like iON INNOVATIVE TECHNOLOGY for EVs and Hankook Innovative Performance (HIP).
• Premium Brand Equity: Exclusive supplier status for Formula E and WRC, and OE supplier to high-end brands like Porsche and Lamborghini.
• Global Diversification: A balanced revenue stream where no single region dominates excessively, with strong footholds in Europe, Americas, and Asia.
• Financial Health: Record revenue and operating profit in 2024, with a strong balance sheet.

Key Challenges and Risks

• Geopolitical & Economic Uncertainty: Risks include protectionist trade policies in the US and global economic slowdowns.
• Market Dynamics: Stagnant EV demand and the rapid rise of Chinese competitors are cited as potential headwinds.
• Financial Risks: The company manages risks related to foreign exchange volatility and liquidity through a global cash pooling system and strategic hedging.
• Environmental Risks: Biodiversity risks and climate change impacts are actively monitored under the TNFD framework.

Conclusion and Strategic Outlook

Hankook Tire & Technology has firmly established itself as a “First Mover” in the global mobility industry. By achieving record financial results in 2024 and securing pivotal partnerships in the EV and motorsport sectors, the company has demonstrated the efficacy of its premium brand strategy. Looking ahead, the integration of Hanon Systems and the continued expansion of the iON brand position Hankook to not only navigate the challenges of the evolving automotive landscape but to lead it. The company’s commitment to sustainable innovation, digital transformation, and aggressive global expansion ensures it remains a formidable force in shaping the future of driving.

Official Site: www.hankooktire.com

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FAQ Section:

1. What was Hankook Tire & Technology’s revenue in 2024? In 2024, Hankook Tire & Technology achieved a record consolidated revenue of KRW 9,411.9 billion.
2. What is Hankook’s primary strategy for the electric vehicle market? Hankook employs a “First Mover” strategy with its “iON” brand, the world’s first full lineup of tires exclusively designed for electric vehicles, which saw 134% sales growth in 2024.
3. Which major motorsports does Hankook sponsor? Hankook is the exclusive tire supplier and official partner for the ABB FIA Formula E World Championship and will be the exclusive supplier for the FIA World Rally Championship (WRC) starting in 2025.
4. Where are Hankook Tire’s main production facilities located? Hankook operates eight production plants globally, located in South Korea (Daejeon, Geumsan), China (Jiangsu, Jiaxing, Chongqing), Hungary, the United States (Tennessee), and Indonesia.
5. What is the “First Mover” strategy mentioned in Hankook’s report? The “First Mover” strategy is Hankook’s proactive approach to securing future growth drivers through sustained R&D investment and a focus on premium brand value, particularly in the EV and high-tech sectors.

Content is based on publicly available corporate filings, regulatory disclosures, annual reports, 10-K filings, Investor Relations materials, and direct mail communication with the company.