We raised the prices of Daedong tractors exported to the North American market by 10% from a year earlier.
Kang Deok-ung, head of Daedong's overseas business division, said this in an interview with ChosunBiz at the Daedong Seoul office in Seocho-gu, Seoul, on the 11th.
Daedong, Korea's leading agricultural machinery company, has moved to take "head-on countermeasures" against the Trump-led U.S. tariff barrage. Daedong entered the North American market, the largest tractor market, in the 1980s and now sells tractors and other agricultural machinery in markets around the world, including Europe. Kang oversees Daedong's overseas business.
Daedong's overseas sales have already surpassed domestic sales. As of last year, Daedong earned 924.9 billion won overseas, or 65.3% of total sales. Among them, North America and Europe are key markets.
Kang said, "The global tractor market is 530,000 units a year, with North America at 200,000 units as the largest market," and added, "To respond to U.S. tariff policy, we raised local North American prices by 10% from the previous year." That is double Daedong's 5% price increase in North America last year. In the North American market, Daedong raised tractor prices by 2.5% in the first half of this year and implemented an additional 7.5% increase in September.
That contrasts with Japan's Kubota, which raised prices by about 3% this year in the North American market. John Deere, the No. 1 player in North America, has kept prices frozen so far.
The backdrop that allowed Daedong to raise prices lies in the brand competitiveness it has built over about 45 years in the North American market. Kang emphasized Daedong's strong local dealer competitiveness in North America, known as "KIOTI."
He said, "We currently have about 550 dealers in the North American market," and added, "We support everything needed to boost sales, from product training to marketing." He also said, "Through annual capability assessments, we share the strategies of top-performing dealers while continuously recruiting capable dealers," and added, "We plan to secure 1,000 North American dealers by 2030, including 100 this year."
To ensure smooth product supply, Daedong last month established a logistics center of about 29,421 square meters (about 8,900 pyeong) in Tacoma, Washington, on the U.S. West Coast. It can store 3,200 tractors and assemble 2,000 pieces of agricultural machinery.
Kang also stressed strengthening sales strategies based on sales data accumulated in the North American market. He said, "In the past, we ran promotions uniformly across the entire North American region, but now, based on the data we've built up, we segment by region and conduct fine-tuned promotions tailored to the needs of each corporation and farm." He called this "microscopic data analysis and sales strategy."
Kang said, "U.S. tariff policy is just beginning," adding, "It is important to respond to additional policy changes." The U.S. administration last month additionally announced 407 items of steel, aluminum, and derivatives subject to a 50% levy. Steel and aluminum are primary materials for manufacturing tractors.
Kang explained, "It varies by Daedong's tractor model exported to North America, but tariffs of 19% to 24% are currently being imposed," adding, "The United States has not yet made clear any additional tariffs on derivative product items."
He emphasized, "For now, the likelihood of tariffs being lowered is slim, and the chance of further increases is high," adding, "We will respond to the U.S. Supreme Court's ruling on the Trump tariff measures in December and subsequent market conditions."
Along with responding to U.S. tariffs, Daedong is also pursuing a strategy to diversify overseas markets. In particular, it is stepping up efforts to penetrate Türkiye, a tractor market of 60,000 units a year, the next largest after the United States and Europe (90,000 units).
Kang said, "We made a full-fledged entry into the Türkiye market this year," adding, "In Europe as well as in Türkiye, we will mobilize all of Daedong's accumulated technological capabilities, microscopic data analysis, and sales strategies to increase market share."