Daedong Industrial "Break Through Agricultural Machinery Exports"... Responding to COVID-19

Executives to Conduct On-Site Inspections of Domestic Sales Network by Month-End
Also Promoting Overseas Market Expansion Including Southeast Asia Targeting

Major Daedong Industrial Agricultural Machinery Products Exported and Sold in the North American Region

[Asia Economy Reporter Kim Daeseop] The management of Daedong Industrial, a comprehensive agricultural machinery company, has launched on-site inspections of eight regional headquarters nationwide to prevent the spread of the novel coronavirus infection (COVID-19) and has ordered strengthening export competitiveness as part of measures to respond to sluggish agricultural machinery sales.

According to Daedong Industrial on the 19th, Lee Sung-tae, Chief Sales Officer, plans to visit each regional headquarters and dealerships by the end of this month to assess the damage caused by COVID-19.

On the 17th, he held an emergency meeting with regional headquarters sales managers to discuss sales strategies for cost-effective agricultural machinery models. Due to the decline in consumer sentiment caused by COVID-19, agricultural product sales have contracted, inevitably reducing the income of farming households, the demand for agricultural machinery buyers. It is expected that demand for affordable, practical models will increase, and opinions were exchanged accordingly.

Agricultural machinery typically experiences peak season from February to April. This period sees a surge in sales demand ahead of the busy farming season. However, due to anxiety caused by the spread of COVID-19, the number of consumers visiting agricultural machinery dealerships has decreased.

Daedong Industrial was also unable to hold regional customer invitation product exhibitions at dealerships nationwide, which are about 150 in number, during the peak season from February to April this year. With face-to-face sales disrupted, domestic sales slowed down last month.

At a management meeting held earlier this month, newly appointed CEO Won Yoo-hyun and Chief Sales Officer Lee Sung-tae presented "expanding export markets" as a key countermeasure. The plan is to increase sales through overseas local subsidiaries to mitigate the domestic slump caused by COVID-19. The proportion of overseas sales in Daedong Industrial's total sales has maintained around 40-50%, increasing to 60% last year.

Export volumes are usually determined by supply contract sizes at least three months in advance, and the company explains that first-quarter export volumes this year are expected to increase compared to the same period last year. Daedong Industrial's major export regions, North America and Europe, recorded sales of approximately KRW 202.1 billion and KRW 27.6 billion respectively last year, accounting for about 80% of total overseas sales. This year, the company plans to actively target the Southeast Asian market to expand sales.

Daedong Industrial Canada Local Corporation Exterior View

A Daedong Industrial official said, "The future agricultural machinery market is actively seeking to expand through diversification of export markets," adding, "Especially in Southeast Asia, the market size is expected to gradually expand, and competition including new technology development is anticipated to become more intense."

Established in 1947, Daedong Industrial is a specialized agricultural machinery company and the number one domestic market share holder producing tractors, combines, and rice transplanters. The company is led by third-generation founder Kim Junsik, Chairman, along with professional managers CEO Won Yoo-hyun and Lee Sung-tae, who were appointed in January and share leadership roles. Last year, the company recorded sales of KRW 832.9 billion based on consolidated financial statements.

This content was produced with the assistance of AI translation services.