Korean tractor exports hit record high of $1.3 bn in 2022

Exports of South Korean tractors hit a fresh record high for the second consecutive year in 2022, according to Korea Customs Service on Jan. 24. Korea's leading agriculture equipment makers such as Daedong Corp. and TYM Corp. are ramping up their manufacturing capacity to expand sales, targeting North America.

Annual exports of Korean tractors logged $847 million in 2015 and fell to $500 million-$600 million in the years following. Exports soared to $1.1 billion in 2021 as demand for small and mid-sized tractors for “hobby farming” boomed overseas amid the pandemic, particularly in the US and Canada.

Korean agricultural machinery makers have seen their sales grow backed by increased exports.

Daedong, known under the Kioti brand in the US, logged 1.18 trillion won ($956.6 million) in revenue on a consolidated basis in 2021, exceeding annual revenue of 1 trillion won for the first time. The tractor manufacturer will post about 1.3 trillion won in revenue for 2022, according to consensus estimates.

TYM, which posted 922.8 billion won in revenue for the January-September period last year, is forecast to exceed 1 trillion won for its 2022 revenue.

The tractor makers are boosting investment in tractor manufacturing facilities.

Daedong increased the annual production capacity of its Daegu plant from 64,000 to 75,000 units last month, after increasing its yearly farming machine output through original equipment manufacturer (OEM) production from 40,000 to 50,000 units last September. The company is also considering expanding the site to allow for tractor shipment inspection at the plant.

TYM is set to double its annual tractor production in North America from 25,000 to 50,000 units by investing $20 million in facilities in the US state of Georgia. The company is aiming to complete the construction by the second quarter of 2024.

Write to Gyeong-Jin Min at min@hankyung.com
Jihyun Kim edited this article.