Hanon Systems has announced a revised capital increase of 600 billion won ($461 million) from Hankook Tire & Technology, up from the initial plan of 365.1 billion won. The deal, approved through a board resolution, involves the issuance of approximately 145 million shares at 4,139 won per share, with funds expected to be received by year-end, pending lender consent and regulatory approvals.
The capital raise comes as Hanon Systems adapts to the evolving automotive landscape, particularly the challenges posed by the prolonged “electric vehicle chasm.” The funds will be used to enhance business structure, improve cost efficiency, and repay debt, bolstering the company’s financial stability.
Hanon Systems plans to redeploy resources from Europe, North America, and China to optimize investments and solidify its profitability. Hankook Tire & Technology, a strategic investor, is playing a key role in facilitating this capital increase, aligning with broader industry trends toward electrification. The capital injection is expected to ease market concerns about Hanon’s financial health and support its long-term growth.
