LS Automotive Co., Ltd. (Formerly Daesung Electric Co., Ltd.) Business Report FY ended Dec. 2016

Financial Overview (Consolidated)

(in millions of won)
FY ended
Dec. 31, 2016
FY ended
Dec. 31, 2015
Rate of
change (%)
Sales 910,979 808,039 12.7% -
Operating income 62,782 36,317 72.9% -
Net income 41,114 21,905 87.7% -

Business Plan

-The Company is aiming to become a global company in the area of on-board electronics business. Having adopted a new corporate name, LS Automotive, the company is expecting marketing synergies with other companies in the Group including LS Cable, which produces high power harnesses for green vehicles, and LS Mtron, which produces automotive hoses. (From a press release on November 3, 2016)

-The Company established LS Automotive Mexico S.A. de C.V. in November 2016. Full-scale production at the new facility is expected to begin in 2018. The Company plans to invest KRW 27.4 billion by 2019 to establish necessary production infrastructure. Currently, the Company has two subsidiaries in China, which generate a total of KRW 180 billion in sales, and one subsidiary in India, which generates KRW 69 billion in sales. With the addition of the Mexican subsidiary, the Company is aiming to boost sales from its all overseas subsidiaries to the level equivalent to 50% of the amount generated by the Korean headquarters by 2021. (From a press release on November 3, 2016)

-The Company announced its Vision DS20151 plan that covers the period through 2020. Under this new plan, the Company aims to win contracts worth KRW 2 trillion, achieve KRW 1.5 trillion in sales, and generate KRW 100 billion in net profit before tax in 2020. In 2013, the Company generated sales of KRW 663.5 billion and posted KRW 12.5 billion in net profit before tax. (From a press release on October 8, 2014)


-In October 2016, the Company announced the change of its corporate name to LS Automotive Co., Ltd. The Company was established in 1973, and joined the LS Group in 2008. (From a press release on November 3, 2016)

Acquisition by LS Mtron

-LS Mtron Ltd. of Korea will acquire an additional 49.5 percent equity share in Daesung Electric Co., Ltd. from Delphi of the U.S., making it its wholly owned subsidiary. The transaction, which is worth 39,600 million won, is expected to close at the end of January 2011. (From a press release on Dec. 14, 2010)

-LS Mtron Ltd., which is based in Korea, announced that it will acquire a 50.5 percent equity share in Daesung Electric, making it its subsidiary. LS Mtron will pay 69,078 million won for the deal. By making Daesun Electric its subsidiary, LS Mtron will be able to gain access to the automotive electric component business. LS Mtron manufactures industrial machinery and electronic components under the umbrella of the Korea LS Group. The remaining 49.5 percent equity in Daesung Electric is owned by Delphi of the U.S. (From a press release on Nov. 5, 2008)

Recent Development Outside Korea

-The Company established a Mexican subsidiary in November 2016. It is considering making further investments to increase the subsidiary's capital, as it aims to address risks related to international trading and commerce. (From the Company's annual report for 2016)

-The Company announced that it will establish a subsidiary in Saltillo, Coahuila, Mexico in November 2016. The new company will construct a plant by 2018 to produce electric devices for the North American facilities of OEMs including Hyundai Motor, General Motors, Chrysler, and Nissan. (From an announcement by the company on November 2, 2016)


-The Company will supply automotive body control units to Iran Khodro Company (IKCO), an Iranian state-run automaker, under a KRW 105 billion contract. The system is an integrated control technology for car electronic accessories like interior lamps, wipers, door locks, and seat adjusters. Over the next 6 years, LS Automotive will supply the systems for 480,000 vehicles. (From a press release on November 30, 2016)

-In December 2013, the Company announced that it is supplying multi-function switches to Daimler. It will also supply relay switches to the automaker, starting in February 2014. (From a press release, December 30, 2013)

-The Company will supply steering switches for medium- and full-size sedans manufactured by Nissan Motor Co., Ltd. The Company expects to generate 47.5 billion won in sales from this program business, which covers a period of five years starting in 2012. In 2008, Daesung Electric was awarded a contract to supply push switches to Nissan. (From a press release on Apr. 15, 2010)

-The Company has won program business from Audi to supply DC-DC converters for idle stop systems. This program, which covers a period of seven years from 2010, is expected to generate an additional 39 million euros in sales. (From a press release on Nov. 18, 2009)


-In August 2010, the Company acquired the interior lighting business from IHL Co., Ltd., a lighting manufacturer in the Hyundai Motor Group.


-In October 2015, Daesung Electric India received the High Efficiency Award at the Tata Motors Annual Supplier Conference 2015.

-In November 2014, Daesung Electric India established a plant in Pune, India.

-In March 2012, Daesung Electric India received the Excellent Supplier Award from Hyundai Motor India.

-In February 2010, Daesung Electric India received the Best Localization Award from Hyundai Motor India.

-In August 2009, Daesung Electric India received the Excellent Supplier Award from Hyundai Mobis.

-In April 2009, Daesung Electric India received the Excellent Supplier Award from Hyundai Motor India.

-In December 2007, the Company established India Electric Private Ltd., a wholly owned subsidiary, in Tamil Nadu, India to manufacture automotive switches. Operations at this facility started in July 2008.

-In April 2011, Wuxi Daesung Electronics signed a strategic partnership agreement with JAC Motors.

-In December 2009, Wuxi Daesung Electronics won the Excellent Quality Award from SAIC-GM-Wuling Automobile (SGMW).

-In April 2009, the Company acquired the remaining 30 percent of the shares in Delphi Daesung Wuxi Electronics Co., Ltd., making it into its wholly owned subsidiary. The Chinese subsidiary thereby changed its name to Wuxi Daesung Electronics Co., Ltd.

-In June 2016, the Company reacquired the ISO 14001 environmental management certification.

-In October 2013, the Company obtained the OHSAS (Occupational Health & Safety Management System) 18001 certification.

-In December 2011, Qingdao Daesung Electronics won the Excellent Supplier Award from JAC Motors for the third consecutive year.

-In November 2008, the Company made Qingdao Daesung Electronics Co., Ltd. its wholly owned subsidiary by acquiring the remaining 51 percent equity stake in the company, which was held by Deltech.


-In September 2013, Daesung Electric won the Above & Beyond Award from Delphi of the U.S. The award is part of Delphi's Pinnacle Awards, which are given to outstanding suppliers that made strong commitment. The Pinnacle Award was established in 2001. (From a press release on December 30, 2013)

-In December 2012, the Company was awarded the Level 2 certification of Automotive SPICE (Software Process Improvement and Capability Determination), becoming the first Korean auto parts company to obtain this standard established by European automakers for in-vehicle equipment software. (From a press release, December 20, 2012)

R&D Structure

-The Company opened its technical center in 1986.
-In July 2012, the Company announced that it will expand its reliability verification center in Korea. After the construction project is completed, it will install more than 20 new pieces of equipment. Furthermore, another 14 pieces of testing and measuring devices will be added by the end of 2012. (From a press release, July 1, 2012)
-The Company moved its R&D center to Anyang, Gyeonggi-do in 2013
-As of Dec. 31, 2014, a total of 311 researchers engage in research and development activities.
-As of December 2016, a total of 348 employees engage in R&D activities conducted at the HMI Division, Production Engineering Division, R&D Division, Electrical Devices Division, China Business Division, Quality Management Division, and International Business Division.

R&D Expenditure

(in millions of won)
FY ended
Dec. 31, 2016
FY ended
Dec. 31, 2015
FY ended
Dec. 31, 2014
Amount 30,917 31,217 28,849
% of sales 4.6% 5.1% 4.9%

R&D Activities (FY ended in December 31, 2016)

Development projects Achievements and results
Body control systems -Development completed
Artificial engine noise (second generation) -Developing for correspondence to law regulation of China
Integrated front console switches -Reduced the number of wires by 16 and reduced product weight by 0.9 kg
Third-generation ballasts -Optimized performances by developing and using ASIC
Next-generation torque & angle sensors -Developing products that comply with ISO 26262
Sensorless switches for Integrated Memory Systems (IMSs) -Reduced cost for mass production
Ambient Light -Developing lamp modules
Integrated BCM -Completed development of a new module that integrates Body Control Module (BCM), Tire Pressure Monitoring System (TPMS), and Passive Entry/Passive Start system (PEPS).
Relays for 48V mild hybrid systems -Developing relays for 48V mild hybrid systems
Virtual Engine Sound System (VESS) -Completed development of standard VESS for the China market
2nd generation Virtual Engine Sound System (VESS) for China market -Developing VESSs for EVs, HEVs, and low-speed vehicles for the China market

Technological Alliance

-In May 2013, four companies in the LS Group, namely LSIS Co., Ltd., LS Cable Ltd., LS Mtron Ltd., and Daesung Electric Co., Ltd. signed a memorandum of understanding to collaborate in developing environmentally friendly vehicle parts and other automotive system components. The areas of collaboration will include powertrain systems, energy storage solutions, power charging systems, and electronic devices. In 2012, Daesung Electric was awarded contracts to supply power window switches and instrument panel switches to Dongfeng Motor. Earlier this year, it has also won body control module (BCM) program from the automaker. (From a press release, May 8, 2013)

Introduction of technologies

-The Company and Delphi Packard Electric Systems of the U.S. agreed on Delphi's providing junction box technology to the Company.
-The Company and Immersion of the U.S. agreed on Immersion's providing haptic technologies to the Company.

Capital Investments

(in KRW 100 million)
Facilities Planned amount of investment in 2017 2016 2015

Purpose of investment

LS Automotive
Production and assembly lines 212 154 273 Capacity expansion and mass-production of new products
LS Automotive
Qingdao Corp.
Production and assembly lines 79 70 76 Capacity expansion and mass-production of new products
LS Automotive
Wuxi Corp.
Production and assembly lines 49 29 125 Capacity expansion and mass-production of new products
Daesung Electric
India Private Ltd.
Production and assembly lines 21 18 11 Capacity expansion and mass-production of new products
Total 361 271 485 -