Signed MOU with the World's Oldest Firearms Manufacturer...
Joint Promotion of Small Arms Business
86.6 Billion KRW Ground Laser Target Designator Project to Be Reflected in Sales This Year
Vice Chairman Byun Seong-jun of Hancom Group (center), CEO Kim Sun-young of Hancom Lifecare (right), and Chairman Carlo Perlito of Beretta (left) are taking a commemorative photo at the exhibition booth. Photo by Hancom Lifecare
Hancom Lifecare, a subsidiary of Hancom and a defense and safety equipment specialist company led by CEO Kim Sun-young, is accelerating its entry into the global defense market by partnering with Beretta, the world's oldest firearms manufacturer.
Hancom Lifecare announced on the 10th that it recently signed a memorandum of understanding (MOU) with Beretta for comprehensive business cooperation. The two companies plan to jointly pursue small arms projects, including submachine guns for special operations and next-generation new rifles. They also agreed to collaborate on future technology partnerships and domestic firearms business cooperation to discover new defense projects. Additionally, they plan to actively enter the Southeast Asian market by using Hancom SPI, a subsidiary located in the Philippines, as a base.
This agreement was made as Hancom Lifecare's global business expansion strategy is showing tangible results. The company recently signed an exclusive supply contract for gas masks K3 and K11 with a U.S. personal protective equipment (PPE) specialist, laying the groundwork for entry into the North American market. In December last year, it accelerated overseas market development by securing a military uniform supply contract worth approximately 10 billion KRW with the Philippine Army.
The global business expansion is also leading to improved performance. Hancom Lifecare recorded provisional consolidated sales of 104.7 billion KRW and operating profit of 7.5 billion KRW last year. Although sales decreased by 7.1% compared to the previous year, operating profit surged by 308%. Net profit reached 6.5 billion KRW, marking a remarkable increase of 647.8% year-on-year.
These achievements are analyzed as the result of expanding defense business and management efficiency strategies. Above all, improving the cost structure in the firefighting personal safety equipment sector and increased sales of electric vehicle fire suppression solutions drove profitability improvements. Hancom Lifecare plans to further strengthen its leading position in the firefighting and safety fields this year while accelerating its entry into overseas defense markets. Considering changes in the security environment and the trend of increasing defense budgets, growth potential in the defense business is expected to expand further. In particular, the 86.6 billion KRW ground laser target designator technology cooperation production project signed with the Defense Acquisition Program Administration two years ago is expected to be reflected in sales starting this year, raising expectations for performance improvement.
Kim Sun-young, CEO of Hancom Lifecare, said, “Through cooperation with Beretta, we will further solidify our position in the global defense market,” adding, “We will leap forward as a global defense company through continuous technology development and global partnerships.” He emphasized, “We will contribute not only to business growth but also to the development of domestic and international safety and defense industries by providing competitive products and total solutions.”
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