[Click eStock] "Daedong, Solution to US Labor Shortage... Expecting Rebound in KIOTI Tractor Demand"

On the 24th, SK Securities forecasted that Daedong's tractors would stand out as a solution to the labor shortage in the United States.

Park Chansol, a researcher at SK Securities, stated in a report on the same day, "About 40% of the agricultural workforce in the U.S. works without proper work authorization, which amounts to approximately one million people," and analyzed, "The labor shortage on U.S. farms will be a very positive business driver for Daedong."

He further emphasized, "In particular, the labor shortage among farm owners is likely to become severe in the U.S. small- and medium-horsepower tractor market, which is Daedong's target market."

The average age of U.S. farm owners reaching their 60s and the fact that less than 10% of farm owners are under 35 years old are also identified as factors that will worsen the problem in the long term. The existing H-2A temporary work visa system has failed to resolve the labor supply imbalance due to seasonal demand fluctuations. Accordingly, there is a forecast that the use of automated machinery and equipment in U.S. agriculture will inevitably expand.

Daedong is a leading domestic agricultural machinery company. Daedong's major markets are estimated at KRW 1.5 trillion domestically, KRW 1 trillion in Ukraine, and KRW 7 trillion in the United States, with the U.S. market accounting for the largest share of sales. Tractor sales account for about 80% of Daedong's total sales, with the North American market making up 70% of that.

Researcher Park said, "Daedong's KIOTI brand tractors compete with Japan's KUBOTA and some Indian companies, but currently, the focus should be on the rebound in demand in the U.S. market rather than competition." He added, "If U.S. immigration policies do not change significantly, there is a high possibility that demand for Daedong equipment will rebound in 2026," and "Now is the time to increase interest in Daedong."