ILJIN Global Group, a South Korean automotive parts conglomerate, was designated as a disclosure-required corporate group by the Korea Fair Trade Commission in May 2024 after its domestic assets reached 5.06 trillion won. The designation came three years after Lee Dong-seop (55), eldest son of founder Lee Sang-il (1938-2023), assumed leadership in June 2023 following his father's death and was promoted to chairman in June 2024. The group's elevation to quasi-conglomerate status was driven by sustained profitability across four core subsidiaries — ILJIN Global Co., ILJIN Co., ILJIN Bearing, and Bearing Art — which recorded combined revenue of 3.79 trillion won and operating profit of 390.6 billion won in 2023, achieving a 10.3% operating margin. ILJIN Global Co., specializing in third-generation wheel bearings with the world's top market share since 2003, led the group's growth with 1.91 trillion won in revenue and 290.3 billion won in operating profit in 2023. The succession occurred within a cash-rich structure, with five domestic affiliates holding 1.028 trillion won in cash and cash-equivalent assets as of end-2023, enabling Lee Dong-seop to secure a controlling 70% stake through direct and indirect holdings without significant debt burden.
Five Affiliates Hold 1 Trillion Won in Cash Reserves
ILJIN Global Group traces its origins to ILJIN Mulsan, a garment factory established in July 1973 by founder Lee Sang-il, who graduated from Korea University's College of Commerce and worked at Korea Electric Power Corporation before entering business at age 35. The establishment of ILJIN Forging (now ILJIN Bearing) in December 1978 marked a turning point, as the company began supplying transmission gears and strut bars for Hyundai Motor's first domestic car, the Pony. The group expanded into container parts in August 1982 (Korea Block Switch) and chassis parts in January 1986 (Donga Industry, now ILJIN Co.). Entry into the wheel bearing market in 1994 proved decisive, with ILJIN Global Co.'s proprietary third-generation wheel bearing — developed in March 2003 — achieving the world's top market share. The company established Bearing Art in May 2011 to produce industrial bearings for railway vehicles, electric vehicles, and robots.
As of end-2023, the four core operating subsidiaries maintained minimal debt except for Bearing Art. Cash and cash-equivalent assets (including short-term investments) totaled 1.028 trillion won: ILJIN Global Holdings held 393 billion won, ILJIN Global Co. held 337 billion won, ILJIN Bearing held 148 billion won, ILJIN Co. held 95.4 billion won, and Bearing Art held 55.1 billion won. The group operates 12 domestic factories in Gyeongju, Yeongju (North Gyeongsang Province), Jecheon (North Chungcheong Province), and Yeongwol (Gangwon Province), plus 11 production and sales subsidiaries in 10 countries including China, the United States, India, and Germany. Additional affiliates include ILJIN Global Holdings (owner of the group headquarters building in Samseong-dong, Gangnam-gu, Seoul) and four family-related companies — Urban Next, Lacent Holdings, DNK (real estate leasing), and Bearing Plus (auto parts sales). All nine domestic affiliates remain unlisted.
Lee Dong-seop Secures 70% Controlling Stake After 2023 Succession
ILJIN Global Co. overtook ILJIN Co. as the group's flagship in 2013 when its revenue (865 billion won) surpassed ILJIN Co.'s 828 billion won. Revenue exceeded 1 trillion won in 2015 and approached 2 trillion won in 2023. Operating profit crossed 100 billion won in 2010 and 200 billion won in 2017, averaging 244 billion won annually from 2021 to 2025 with margins consistently between 13.2% and 15.2%. The company's 2023 revenue of 1.91 trillion won exceeded the combined revenue of ILJIN Co. (974 billion won), Bearing Art (566 billion won), and ILJIN Bearing (339 billion won), while its operating profit of 290.3 billion won was nearly triple the three companies' combined operating profit of 100.3 billion won.
Lee Dong-seop, the eldest of founder Lee Sang-il's one son and three daughters, graduated from Korea University's College of Business Administration and earned an MBA from the University of Illinois at Urbana-Champaign. After working as an analyst at Samsung Securities, he joined the family business in February 2003 at age 32. He served as head of the U.S. subsidiary, director of planning and coordination, and director of strategic planning before being promoted to vice chairman in 2022. He assumed leadership in June 2023 when founder Lee Sang-il passed away at age 85 after 50 years since the company's founding, and was promoted to chairman in June 2024. Lee Dong-seop currently holds a 70% controlling stake in the ownership structure that flows from himself through ILJIN Co. (100% ownership, 60% stake) to ILJIN Global Holdings and ILJIN Global Co. He directly owns 80% of ILJIN Bearing. Only Bearing Art remains outside his control sphere.
FAQ
What triggered ILJIN Global Group's designation as a disclosure-required corporate group in May 2024?
The Korea Fair Trade Commission designated ILJIN Global as a disclosure-required corporate group in May 2024 after the group's domestic assets reached 5.06 trillion won as of end-2023, marking 53 years since its founding in 1973.
How did Lee Dong-seop secure control of ILJIN Global Group after his father's death in 2023?
Lee Dong-seop assumed leadership in June 2023 following founder Lee Sang-il's death and was promoted to chairman in June 2024. He secured a 70% controlling stake through direct and indirect holdings flowing through ILJIN Co. (100% ownership, 60% stake) to ILJIN Global Holdings and ILJIN Global Co., while directly owning 80% of ILJIN Bearing.
What financial performance did ILJIN Global's core subsidiaries achieve in 2023?
ILJIN Global's four core operating subsidiaries — ILJIN Global Co., ILJIN Co., ILJIN Bearing, and Bearing Art — recorded combined revenue of 3.79 trillion won and operating profit of 390.6 billion won in 2023, achieving a 10.3% operating margin. ILJIN Global Co. alone generated 1.91 trillion won in revenue and 290.3 billion won in operating profit.
