Daedong posts 377.7 billion won in first-quarter sales…breaking through head-on with ‘Agricultural AX’ amid a global chill

[Korea Agricultural Technology Newspaper = Reporter Lee Hyun-woo] Even amid a chill in the global agricultural machinery market caused by high interest rates and an economic slowdown, Daedong is accelerating its transformation into an AI-based future agriculture platform company.

Daedong (co-CEOs Kim Jun-sik and Won Yoo-hyun) announced on May 18 that it recorded consolidated first-quarter sales of 377.7 billion won and operating profit of 6 billion won this year. Compared with the same period last year, sales fell slightly by 2.4%, and operating profit also declined due to shrinking global demand for agricultural machinery, the burden of U.S. tariffs, and expanded investment in future businesses (AI and robotics).

In particular, in North America, Daedong’s main overseas market, weakened purchasing sentiment among farmers due to the high-interest-rate trend and a drop in financing approval rates overlapped, delaying the recovery in sales. The European market also saw slower growth due to the economic downturn, which is analyzed to have exerted downward pressure on performance.

Daedong’s plan is to overcome this global market slump with a head-on breakthrough strategy that puts ‘agricultural physical AI’ technology at the forefront. Breaking away from the traditional business structure centered on agricultural machinery manufacturing, it is accelerating a company-wide transition into an ‘AI agricultural operation platform’ company that organically connects AI tractors, agricultural robots, precision agriculture, and smart farming.

Achievements in actual agricultural fields are also becoming visible. In the first quarter of this year, Daedong successfully completed the nation’s first nationwide demonstration tour of a vision AI-based autonomous work tractor, laying the groundwork for field sales. It also achieved the feat of winning the 254.6 billion won ‘National Agricultural AX Platform Project,’ a key initiative in agricultural digital transformation.

In overseas markets, it is pursuing a qualitative growth strategy centered not on simple volume expansion but on ‘high-quality dealers’ with strong sales capabilities.

Daedong, which set a goal of securing 100 new dealers in the North American market this year, already achieved that target in the first quarter. Considering local market trends, it is expected to secure at least 50 additional excellent dealers in the first half of the year. At the same time, it plans to increase its dominance in the European premium agricultural machinery market by simultaneously opening new channels in Northern Europe and strengthening capabilities in its direct sales business in Germany.

Daedong’s policy is to achieve a full-fledged rebound in performance from the second quarter, when the peak season for agricultural machinery begins in earnest, by expanding the distribution of AI tractors and carrying out high-intensity cost innovation activities. In particular, under the goal of selling up to 300 AI tractors this year, it plans to actively expand ‘agricultural package sales’ linking precision agriculture technology and transport robots. Based on this, Daedong announced its ambition to achieve annual sales of 1.65 trillion won this year, up about 11% from the previous year, and to expand and build local dealer networks in North America and Europe to at least 600 each.

Won Yoo-hyun, CEO of Daedong, emphasized, “This year is an extremely important period for Daedong’s transition into a future agriculture platform company based on agricultural physical AI. We will firmly establish the competitiveness of future businesses centered on autonomous work AI tractors, precision agriculture, and smart farming in domestic and overseas fields, and secure a foundation for sustainable agricultural growth through global channel expansion.”