Agricultural machinery corporations Daedong(000490) said on the 14th that it is advancing the distribution of autonomous farmwork equipment and operation management services based on an artificial intelligence (AI) agriculture platform, and strengthening its base for recurring revenue such as parts.
The AI agriculture platform is a system that connects the entire farming process, from data collection to AI-based farming decisions, autonomous farmwork, and equipment operation management. Daedong is expanding a business structure that provides services such as parts replacement, regular inspections, and software updates even after equipment sales.
Parts business revenue rose 24% from about 81 billion won in 2024 to about 100 billion won last year. This year, it is estimated at about 130 billion won. In addition, it is seeking to strengthen service policies, expand domestic and overseas service channels, establish a global supply chain, expand the product lineup, and advance AI-based equipment management.
Daedong offers a 10-year or 3,000-hour free warranty for tractor engines and transmissions and a 50-hour free inspection for agricultural machinery. It also launched a product that allows customers to receive benefits for up to three years after the basic warranty period. Last year, it introduced the "Daedong Service Master Branch," specialized in maintenance and repair, and plans to expand the nationwide service network by opening additional locations in the second half of this year.
It is also strengthening overseas supply chains. It built an integrated logistics warehouse of about 8,900 pyeong in Tacoma, Washington. It plans to expand logistics processing capacity and introduce AI and automation systems by next year. In North America, it expanded the KIOTI dealer network from 570 at the end of last year to 1,100 by 2030. The strategy is to grow demand for parts and after-sales service together.
Daedong plans to expand sales of new equipment such as AI tractors, drones, and delivery robots, while introducing by next year a subscription service that combines regular inspections, consumables replacement, remote diagnostics, and extended warranties to expand the base for recurring revenue. It also set a goal of achieving 300 billion won in parts business revenue in 2030.
Lee Yong-dae, head of the parts and service business division, said, "The parts business growth is the result of strengthening service policies, channels, supply chains, and product lineups in the global market," and added, "We will advance parts demand forecasting and predictive maintenance services by using equipment operation data, and strengthen the base for recurring revenue to achieve 300 billion won in parts business revenue in 2030."