Daedong Corp., South Korea’s largest tractor manufacturer, secured an exclusive partnership with Ukraine’s agriculture ministry Tuesday, positioning itself as the sole Korean machinery company officially involved in the war-torn nation’s agricultural reconstruction efforts.
The memorandum covers technical training programs and equipment donations, including tractors for six Ukrainian universities. The agreement builds on a 30 billion won ($21 million) three-year supply contract Daedong signed with a Ukrainian distributor in November, making it the first Korean agricultural equipment maker to establish significant operations in Ukraine since Russia’s 2022 invasion.
Ukraine’s agricultural sector faces reconstruction costs exceeding $55 billion through 2035, with less than two percent currently funded. The country, once Europe’s breadbasket, has seen its machinery imports rise despite the conflict, with tractor imports reaching $830 million in 2023, up 4.6 percent from the previous year.
For Daedong, known internationally as Kioti, the partnership represents a strategic pivot following its recent split from John Deere after two decades of collaboration. The company posted 1.43 trillion won ($991 million) in sales last year but saw operating profit drop 74.8 percent to 65.4 billion won as it transitions from distributor relationships to independent operations.
The timing coincides with growing expectations that diplomatic efforts might accelerate Ukraine’s reconstruction phase. Operational demand for Ukrainian agricultural machinery is estimated at $20 billion by 2025, creating opportunities in a market where much existing equipment remains outdated.
Daedong CEO Won Yu-hyun framed the initiative as supporting Ukraine’s “post-war reconstruction,” though the conflict continues. The company plans to leverage the partnership for brand recognition and potential government project participation as it expands beyond its traditional North American focus.
