Korea Technology Group Merges with Korea AtlasBX... Cho Hyun-sik and Cho Hyun-beom to Lead as Co-CEOs

[Asia Economy Reporter Kiho Sung] Korea Technology Group is merging with Korea AtlasBX to transform into a 'business-type holding company.' Additionally, Cho Hyun-beom, president of Korea Technology (formerly Hankook Tire), has been appointed as the CEO of Korea Technology Group. Accordingly, Korea Technology Group will change to a dual CEO system with Cho Hyun-sik and Cho Hyun-beom as co-CEOs.

Korea Technology Group and Korea AtlasBX announced on the 26th that they held board meetings respectively and resolved the merger plan with these details.

The two companies plan to complete the merger by April 1st next year after going through procedures such as board meetings or general shareholders' meetings in January. The merger ratio is 1 to 3.39, where for each share of the dissolving company Korea AtlasBX (53,599 KRW), 3.39 shares of the surviving company Korea Technology Group (15,801 KRW) will be allocated.

The company stated that this merger aims to seek growth opportunities by maximizing synergies between the two companies. A Korea Technology Group official explained, "We considered the current situation where the automotive industry's paradigm is rapidly changing due to the slowdown in the automotive market, which is the group's upstream industry, and the replacement of internal combustion engine vehicles with eco-friendly vehicles."

In particular, Korea AtlasBX's lead-acid battery business faces an environment where it is being replaced by lithium batteries due to the growth of eco-friendly vehicles, limitations in lead-acid battery technology development, and lead regulation policies in various countries. To overcome this, Korea Technology Group plans to actively utilize its brand, networking, and mergers and acquisitions (M&A) capabilities to secure next-generation battery technology, personnel, and demand sources, and continue bold investments. The goal is to transform from a lead-acid battery manufacturer and seller into a smart energy solutions specialized company.

Through this merger, Korea Technology Group will be able to secure stable investment resources as a business-type holding company, actively leading investments to strengthen core business competitiveness and discover new businesses. The group plans to continue quality investments to enhance the global competitiveness of its core tire business and diversify its investment portfolio into mobility and future technology-based industrial sectors.