[Edaily Reporter Shin Ha-yeon ] “I believe piston production volumes will only increase through 2035—they certainly won’t decrease. As we take over production volumes from global competitors, we expect revenue from the piston business to increase by at least 70 billion won by 2032 compared to current levels. Revenue from new businesses will also approach 30 billion won this year and grow to 100 billion won by 2030.”

Hong Sun-gyeom, CEO of DONGYANG PISTON(092780)(DY Corporation), made these remarks during a meeting with Edaily at the company’s headquarters in Ansan, Gyeonggi Province, on the 23rd. He emphasized that rather than worrying about the contraction of the internal combustion engine market, one should consider both the competitiveness of existing businesses and the growth potential of new ventures.

Founded in 1967, DY Corporation is a company that has primarily produced pistons for automotive engines. Last year, it recorded consolidated revenue of 459.3 billion won and an operating profit of 16.7 billion won. Based on global automotive original equipment manufacturer (OEM) sales, its global piston market share is approximately 9%, ranking it fourth worldwide.

CEO Hong predicted that the shift to electric vehicles would not immediately lead to a decline in piston demand. This is because, as the growth of pure electric vehicles slows, hybrid vehicles and extended-range electric vehicles (EREVs) are emerging as alternatives. In an EREV, the engine acts as a generator to charge the battery rather than directly propelling the vehicle.

CEO Hong explained, “As the concept of hybrid vehicles evolves, it is highly likely that engines will last longer than expected,” adding, “Since EREVs aim to travel about 1,000 km on a single tank of fuel while utilizing existing gasoline infrastructure, they could become a strong competitor to electric vehicles.”

Restructuring efforts by global competitors are also presenting opportunities. According to the company, one of the world’s top three piston manufacturers plans to close its Mexican plant in April 2027, and part of its existing supply volume will be transferred to DY Corporation. North American automakers such as GM and Ford are also inspecting DY Corporation’s facilities to explore production transfers.

CEO Hong said, “While competitors have halted investments in pistons or sold off their businesses in anticipation of the shift to electric vehicles, demand for internal combustion engines is persisting longer than expected.” He also cited the growing demand for pistons for large engines used in emergency generators for artificial intelligence (AI) data centers as a new opportunity.

Building on its piston business, DY Corporation is expanding its portfolio to include batteries, heat dissipation modules, hydrogen fuel cells, and lightweight chassis components. Revenue from new businesses, which stood at 22 billion won last year, is projected to rise to approximately 29 billion won this year. Their share of total revenue is also expected to increase from about 5% to 6%.

The company has set a consolidated revenue target of approximately 480 billion won for this year. By 2030, it plans to expand revenue from new businesses to 100 billion won, accounting for about 16% of total revenue, and to increase that share to 25–30% by 2035.

The battery components sector is expected to show results first. DY Corporation began supplying cap assemblies for electric vehicles to SAMSUNG SDI CO.,LTD. in July and expects to generate revenue from full-scale mass production starting in the fourth quarter of this year.

The company aims to begin mass production of heat dissipation components for electric vehicles supplied to HyundaiMobis in the fourth quarter of 2027, and of the hollow “hollow knuckle”—currently under development with KIA CORPORATION and HYUNDAI WIA—in the second quarter of 2028. The hollow knuckle is a lightweight aluminum chassis component designed to meet the demand for lighter electric vehicles.

In the first half of this year, DY Corporation recorded consolidated revenue of 247.4 billion won and operating profit of 3.4 billion won. Profitability declined due to rising logistics costs and aluminum prices, as well as the burden of upfront investments in new businesses. Transportation costs for the first half increased to 6.9 billion won from 4.2 billion won in the same period last year.

Investments in shared infrastructure for new businesses—such as measurement and inspection equipment and factories—are expected to be largely completed this year. CEO Hong stated, “We expect to enter a virtuous cycle starting in 2027, and we anticipate that the profitability of the piston business will recover to previous levels beginning in 2028.” He added, “Once revenue from new businesses begins to grow, the improvement in profitability will become even more pronounced starting in 2029.”

The company will also continue its shareholder returns. CEO Hong presented the “3-3-3 Principle”—allocating profits at around 30% each to employees, shareholders, and future investments—as his management philosophy. He said, “Although we have not been able to distribute all 30% of profits as dividends due to investments in new businesses, we have strived to maintain annual dividends,” adding, “Once the new businesses are on track, we will expand dividends and consider canceling treasury shares.”