Precision processing company Daesung Hi-Tech Co., Ltd., which entered the stock market in 2022, is at a turning point. The company is significantly expanding its business portfolio with the aim of becoming a centennial company. Based on advanced processing technology acquired through transactions with Japan, it is expanding beyond its existing focus on 'ultra-precision parts and Swiss-type automatic lathes' to include medical and defense industry components.

CEO Choi Ho-hyeong of Daesung Hi-Tech stated, "We are expanding the range of precision parts usage into high-value-added areas such as medical and defense sectors, based on our unrivaled ultra-precision parts manufacturing technology in Korea." Although the new fields appear different from existing businesses, he explained that it is a natural evolution in terms of technology and market expansion.

Currently, the business structure shows annual sales of approximately KRW 35 billion for the ultra-precision parts business and about KRW 65 billion for the finished machine business. The management predicts that ultra-precision parts will emerge as the primary core business in the future.

The most noticeable change is in the defense sector. The company completed the development of over 100 types of parts for European defense companies in 2023 and 2024 and is currently awaiting mass production orders. With the acquisition of GVC 30 certification, it secured up to KRW 5 billion in government and institutional funds over the next two years, which will be invested in developing products for export to Europe. It is also developing AI and robot-related parts for domestic global defense companies and has entered the mass production setup stage.

The medical parts sector is also moving quickly. The main targets are the blood dialysis filter and catheter markets. The domestic related medical device market is worth KRW 600 billion to KRW 700 billion annually, with high demand for localization. Through government projects, it secured support of KRW 12 billion for dialysis filter membranes and KRW 12 billion for AI autonomous manufacturing related to catheters. The expansion of the AI autonomous manufacturing medical center within the factory is also scheduled for the first half of 2026.

This business expansion is a strategy to create a structure less affected by external economic fluctuations. CEO Choi explained, "In the past, there were performance fluctuations due to the characteristics of economically sensitive industries in the structure of manufacturing precision parts and finished machines," adding, "If annual sales in the defense and medical sectors increase 2 to 3 times compared to the current level, it will be possible to achieve steady growth as a high-value-added industry regardless of economic trends."

He was candid about the stock price performance falling short of expectations since listing. CEO Choi emphasized, "We have secured sample success and mass production waiting quantities from global companies, and large-scale orders are expected to begin in earnest from the second half of 2025." He projected that the finished machine business could also enter a recovery phase if the tariff war eases and the global economy recovers.

Daesung Hi-Tech highlights its strength as a rare smart machine manufacturer that produces both precision parts and finished machines. The company calculates that the ultra-precision processing technology accumulated through technology exchanges with Japan could present new opportunities in the medical and defense fields.

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