Semisysco Promises 200 Billion KRW Investment to Expand Electric Vehicle Business with Edison Motors

[Asia Economy Reporter Hyunseok Yoo] Semisysco announced on the 21st that it will invest a total of 200 billion KRW in three phases by April 2022 to expand its electric vehicle business with Edison Motors. Through this, it plans to acquire a 33% stake in Edison Motors.

The plan is to invest 80 billion KRW by October 2021 in the first phase, 80 billion KRW by January 2022 in the second phase, and 40 billion KRW by April 2022 in the third phase, totaling 200 billion KRW. The investment funds will utilize capital from convertible bonds and bonds with warrants scheduled for payment.

Semisysco signed a Memorandum of Agreement (MOA) with Edison Motors on the 18th for successful business promotion. Both companies expect that this agreement will strengthen their existing businesses while enhancing research and development (R&D) capabilities for new businesses.

Through the agreement, Edison Motors will sell electric trucks and electric buses through Semisysco's nationwide network. Semisysco plans to apply Edison Motors' technology, including drive motors, battery management systems (BMS), and vehicle lightweighting technology, to its own electric vehicle Smart EV Z. It also plans to expand its product portfolio to include electric passenger cars and sport utility vehicles (SUVs).

A company official said, "This is a plan to lay the foundation for the future expansion of Semisysco's electric vehicle business and to solidify the No. 1 market share," adding, "Semisysco expects direct synergy with Edison Motors through securing shares in Edison Motors."