Hankook & Company, the business-type holding company of Hankook Tire & Technology (Hankook Tire), is accelerating the development of lithium-ion batteries to respond to the era of electric vehicles. To that end, it is strengthening its next-generation battery development organization and giving it a boost by creating an executive position to bring in outside talent. Even while in custody, Hankook & Company Chairman Cho Hyun-bum, who was sentenced to a prison term in the first trial on charges of embezzlement and breach of trust, is expanding new businesses.
According to the industry on the 25th, Hankook & Company recently spun off the "next-generation battery development team," which had been under the research and development division, into a separate organization. It also created an executive position and hired an LG Energy Solution battery pack production expert as managing director in charge. Considering that the executive leading the research and development division holds a position one rank lower, as an associate managing director, this is interpreted as a sign of intent to put more weight behind next-generation battery development.
Hankook & Company produces and sells lead-acid batteries as its own business. It is the No. 3 player in Korea after Sebang Global Battery and Clarios Delkor. These lead-acid batteries are mainly used to start internal combustion engine vehicles. While demand, as a consumable, is expected to remain at a certain level going forward, results are deteriorating, with third-quarter operating profit (13.6 billion won) down 24% from a year earlier due to factors such as recent U.S. tariffs, creating a need for a new growth engine.
In response, Hankook & Company is speeding up lithium-ion battery development. As in-vehicle electronic systems advance with the advent of electric vehicles, the lead-acid batteries previously used are being replaced by lithium-ion batteries. In particular, Hankook & Company is focusing on low-voltage lithium-ion batteries, which, unlike main power batteries, play a supplementary role in improving an electric vehicle's efficiency and performance. From the "stop-and-go" function that turns off the engine when stopped during driving and turns it back on just before moving, to electronic equipment such as navigation systems, dash cams, and the semi-autonomous driving feature smart cruise control, they can be used without reducing fuel efficiency.
A Hankook & Company official said, "To respond to the expansion of electric vehicle adoption, lead-acid battery corporations also need to make lithium-ion batteries to respond," adding, "We intend to maintain the business by upgrading existing lead-acid batteries to premium products while also focusing on lithium-ion batteries." Accordingly, Hankook & Company unveiled a prototype of its low-voltage lithium-ion battery at AAPEX 2025, the world's largest auto parts exhibition, held in Las Vegas last month.
Inside and outside the company, these moves are being interpreted as reflecting the chairman's intent to expand into new businesses. The chairman was taken into custody in May after being sentenced to three years in prison in the first trial on charges of embezzlement and breach of trust.
Just before being detained, the chairman encouraged new businesses in a message marking the 84th anniversary of the founding, saying, "Let's overcome internal and external crises through proactive innovation and create a new order." A business community official said, "Matters related to creating executive posts and future growth engines are handled directly by the owner," adding, "It is highly likely that Cho Hyun-bum made the decision himself."
In the first trial, the chairman was found guilty of charges including lending 5 billion won of funds from a Hankook Tire affiliate to the head of Rihan, an auto parts company with whom he had a personal relationship, without reasonable debt recovery; having a chauffeur hired by Hankook Tire exclusively serve his spouse; and having five vehicles for personal use purchased and leased under the company's name. The appellate ruling is scheduled for on the 22nd of next month.