Daewon Kangup Co., Ltd. Business Report up until FY ended Dec. 2013

Business Highlights

Highlights in Recent Years

Financial Overview (Consolidated)

(in million of won)
FY ended
Dec. 31, 2013
FY ended
Dec. 31, 2012
Rate of
change (%)
Sales 1,010,584 1,000,413 1.0 Sales by product (Ratio)

Springs : 817,092 million won (80.9%)
Seats : 120,790 million won (12.0%)
Operating income 63,809 62,683 1.8 -
Net income 37,787 48,819 (22.6) -


-In April 2012, the Company established Jiangsu Daewon Asia Auto Spring Co., Ltd. in Jiangsu Province, China, in order to produce coil springs, stabilizers and other automotive products. The new company, which is Dae Won Kang Up Co., Ltd’s wholly owned subsidiary, is capitalized at 2,754 million won. (From a April 20, 2012 press release)

-The Company held a ceremony to celebrate the completion of Daewon America Inc. in Alabama, U.S.A. The new Alabama facility will manufacture automotive coil springs and stabilizers for GM and the local plant of Hyundai Motor Manufacturing Alabama. (From a press release on Feb. 26, 2008)

-The Company announced that it will establish Daewon America Inc. to manufacture automotive coil springs and stabilizers in the U.S. This is the second time for the company to set up a subsidiary outside Korea, following its Chinese unit created in 2005. (From a press release by the Company on Oct. 30, 2006)

-The Company established Daewon India Autoparts Private Limited in India. Capitalized at 469 million won, the new entity will manufacture and sell automotive coil spring and stabilizers. (From a press release on Dec. 28, 2007)

-The Company held a gala groundbreaking ceremony at its plant site in Chennai, India. The Chennai plant will produce automotive coil springs and stabilizers, and begin supplying them to Hyundai Motor's local facility from August this year. (From a press release on Feb. 26, 2008)

-In October 2013, the Company announced that the company and AvtoVAZagregat, a Russian auto parts supplier, will jointly establish DAEWON-AvtoVAZagregat Seats LLC in Russia. The joint-venture company will be capitalized at RUB 16.1 million, of which 51.0 percent will be invested by Daewon Kangup. DAEWON-AvtoVAZagregat Seats is expected to produce seats for 180,000 vehicles per year, starting in 2015. (From a press release, October 11, 2013)

-The Company established DaeWon SeverStal-Auto Elabuga LLC in Russia. The new company will be headquartered in Elabuga, the Republic of Tatarstan, and manufacture and sell seats and seat components. The new company will be capitalized at 3,454 million won, of which 70.0 percent will be provided by Daewon Kangup. (From a press release on May 9, 2008)

-In January 2013, the Company announced that its Polish subsidiary previously called D&D Springs Poland Co, Ltd. has adopted a new corporate name, Daewon Europe Co., Ltd. Daewon Europe produces leaf springs, coil springs, stabilizer bars and other spring products. (From a press release, January 31, 2013)

-The Company will increase its investment in D&D Spring Poland Co., Ltd. in Poland, raising its shareholding in the Polish company, thus making D&D Spring its subsidiary. D&D Spring Poland was established jointly by Daewon Kangup and Daewoo Motor Polska Sp. zo.o (DMP) in 1997 and manufactures auto parts such as leaf springs, coil springs, and stabilizer bars. (From a press release on Jun. 19, 2008)

-The Company established Daewon Poland Sp. z o.o. in Poland to conduct investment activities in Eastern Europe. The new company is capitalized at 23 million won, which was fully funded by Daewon Kangup. (From a press release on May 15, 2008)


-In May 2012, the Company announced that it has been supplying air springs for KIA Motors' K9. The air springs are being produced at the Juan Factory located in Incheon. The Company developed these springs based on a technical license agreement from Vibracoustic, which is based in Germany. (From a May 25, 2012 press release)


-The Company won a contract from Volkswagen to supply coil springs for 600 thousand vehicles, which will be marketed in Europe, every year. The agreement, which is for a period of 7 years between May 2013 and May 2020, is expected to be worth approximately 84 billion won in sales. (From a press release on February 22, 2011)

AD Motors

-The Company was selected by AD Motors, a Korea-based electric vehicle manufacturer, to be the suppler to develop vehicle frames. Development activities are now underway, with Daewon Kangup planning to supply the frames starting sometime after March 2010. AD Motors is headquartered in Hwaseong City, Gyeonggi-do. It will mass produce the Aurora electric vehicle, starting in April 2010. (From a press release on Mar. 10, 2010)

-The Company announced that it has concluded a supply agreement with GM, under which the company will supply approximately 230,000 to 600,000 coil spring stabilizers to the automaker's plants in Korea, North America, and Europe for the period of 2008 over 2013. The 5-year contract is expected to generate sales of some 140 billion won. (Based on a press release by the Company on Dec. 21, 2006)


R&D Structure

-In March 2003, it established a facility research team to conduct R&D of springs.
-In March 1991, it established a seat research center (currently the research is conducted by the design and technology team) to develop new seats
-In November 1986, the Company established a technical center for developing new technologies and products.

R&D Expenditure

(in million of won)
  FY ended
Dec. 31, 2013
FY ended
Dec. 31, 2012
FY ended
Dec. 31, 2011
Amount 24,278 23,211 23,146
% of Sales 3.0% 3.2% 3.2%

R&D Activities

-In October 2013, the Company announced that it has developed a high-strength and lightweight engine valve spring jointly with Hyundai Motor, POSCO, and KISWIRE Ltd. The new valve spring achieves a high tensile strength of 2,300 MPa, offering a significant improvement over existing products with 1,900 MPa. In addition, wire diameter has been reduced to 2.5 mm from the previous products' 2.7 mm. The reduction has led to an approximately 20 percent decrease in weight. The new valve spring is already used on 11 vehicle models, including Hyundai's i30. (From a press release on October 25, 2013)

-The Ministry of Knowledge Economy of Korea announced that it has implemented eight strategic tasks in the area of renewable energy. One strategy is to commercialize polymer electrolyte fuel cells for transportation vehicles. The project will be lead by Hyundai Motor, with several other companies including Daewon Kangup Co., Ltd., Halla Climate Control Corp., and Sejong Industrial Co., Ltd. joining to develop this technology. Over the next three years, the ministry will invest 14.9 billion won and the private sector will invest 13.6 billion won in the project. (From a press release on Dec. 9, 2008)

-Korea's Ministry of Knowledge Economy announced that it will invest over the next year or two approximately 155 billion won in several growth areas. In the area of LED technology, Hyundai Mobis will collaborate with Samsung LED and other companies to develop LED headlamps. Development of green cars will be led by Daesung Electric Co., Ltd.; Hyundai Mobis; Korea Electric Terminal Co., Ltd.; and Daewon Kangup Co., Ltd., which will work on the development and commercialization of major components. Application studies on renewable energy will be carried out by Halla Climate Control Corp.; Inzi Controls Co., Ltd.; Sejong Industrial Co., Ltd.; and the Namyang Research Center of Hyundai Motor. Hyundai Motor, Hyundai Autonet, Samsung Electric will develop semiconductors for next-generation vehicles. These projects are planned to be completed by the middle of 2010. (From a press release on Jul. 8, 2009)

R&D Achievements

R&D Projects Results
Side load coil spring The Company developed coil springs for Hyundai Motor and Kia Motors
Ultra high-precision thin plate springs for EV The Company is developing ultra-lightweight seats using magnesium sheets.
Electronically-controlled air suspensions The Company developed electronically-controlled air suspensions

Agreements on Introduction of Technologies

Contract items Period
NHK Spring
Springs 1 year from May 2013
Aluminum clamps for stabilizer bars 7.5 years from Feb. 2011
Valve cotters 3 years from Dec. 2012
Murata Spring
Engine valve springs 3 years from Dec. 2012
Torque converter springs 3 years from Dec. 2013
Leaf springs 2 years from Mar. 2013
Stabilizer bars From Mar. 2007 through the patent expiry date
Air springs 5 years from Oct. 2009

Licensing Agreements

Contract items Term
Stabilizer bars, Torsion bars 5 years from Jul. 2011
Leaf springs, Coil springs 5 years from Aug. 2006
Leaf springs, Coil springs 5 years from Aug. 2006
Seat and seat components 5 years from Oct. 2007
Toyo Spring
Parabolic springs 8 years from Oct. 2008