Suh Jung-min, CEO of KR Motors, unveiled his vision of reinvigorating Korea's motorcycle industry by increasing R&D investment and improving the efficiency of its sales network on the back of the company's latest acquisition of a unit of Daelim Motor Company.
KR Motors, the nation's second-largest motorbike maker, signed a deal on July 11 to acquire the motorbike manufacturing unit of Daelim Motor Company, the nation's largest company in the industry, for 33.4 billion won.
The acquisition is set to be completed by October 2017. Under the terms of the deal, KR Motors can use Daelim's trademarks for free for one year.
Suh said, "To create maximum synergy effects, the two companies will eventually be merged into one in the long run."
The size of the nation's motorcycle market stood at about 300,000 units in the 1990s. The market, however, has contracted sharply to about 150,000 units after the Asian financial crisis and then plunged to less than 100,000 units in and after the global financial crisis in 2009.
Suh said, "Given that the sales of high end bikes from Japanese and German makers and low end models from Chinese companies are growing steadily, there should be a chance for local companies to revive in this market."