[Edaily Marketin Kwon so hyun Reporter] Motorcycle manufacturer and distributor KR MOTORS(000040)is accelerating its transformation into a specialized mobility parts company by merging with its automotive parts subsidiary, Dynamac. The strategy aims to reorganize its business portfolio around automotive parts while simplifying its corporate structure to enhance management efficiency and transparency.

KR MOTORS announced on the 27th that it has decided to merge with Dynamac, its wholly-owned subsidiary specializing in automotive parts, and has begun the relevant procedures.

KR MOTORS acquired 100% of Dynamac’s shares on March 20, and this merger will proceed as a small-scale merger without a capital increase, with KR MOTORS remaining the surviving company and no new shares being issued.

Dynamac is an automotive parts manufacturer that operates the largest cold forging facilities in South Korea. It produces brake system caliper pistons and electric drive components, among other products, with annual sales of approximately 80 billion won. Cold forging technology is regarded as a core technology applicable not only to the automotive industry but also to high-value-added sectors such as aircraft, robotics, and high-speed rail.

This merger goes beyond a simple consolidation of subsidiaries; it signifies a restructuring of KR MOTORS’ business model to focus on automotive parts. Following the divestiture of its existing motorcycle manufacturing business and a shift toward a distribution-centered model, KR MOTORS plans to position Dynamac as a core business pillar and actively cultivate the high-growth parts business.

Dynamac, too, has gained external credibility by being incorporated into KR MOTORS, a KOSPI-listed company. KR MOTORS explained that even after the merger, it intends to maintain the Dynamac division’s independent profit-and-loss management and its systems for managing production, quality, development, and delivery schedules, thereby upholding existing contracts and quality standards with customers.

Improvements in management efficiency are also expected. The company explained that unifying the structure—which was previously divided into a parent company and a subsidiary—will reduce duplicate costs and accelerate decision-making. KR MOTORS is currently proceeding with the integration process while concurrently conducting post-merger integration (PMI) and consulting in the areas of labor and safety.

KR MOTORS is also pursuing plans to expand the application of its cold forging technology beyond the automotive parts business to include aircraft, robots, and high-speed rail. To this end, the company is operating a dedicated task force (TF) for production infrastructure integration and plans to proceed with a phased relocation of facilities and operational streamlining.

The company is also accelerating efforts to improve its financial structure. KR MOTORS is working to strengthen its fundamentals through voluntary retirement programs for production workers, the utilization of idle assets, and the reduction of debt, and expects to improve profitability by negotiating lower unit prices with its global two-wheeler partners.

Jeong Jae-kyung, CEO of KR MOTORS, stated, “We will build a business portfolio that secures both profitability and growth potential,” adding, “We will transform the company into a specialized mobility parts manufacturer centered on Dynamac.”