Hankook Tire & Technology
Hankook makes tires for cars and trucks, plus thermal systems via its Hanon Systems arm.
On the record
Checkpoint: Chairman Cho Hyun-bum's expected prison release and return to active management
The call
The tire business is running at record revenue and strong margins, but a returning convicted chairman and a low-margin acquisition sit next to that strength.
Hankook Tire makes tires and thermal parts for cars, selling to both regular drivers and car manufacturers. The tire business itself is hard to copy because it requires expensive factories, special chemical recipes, and approval from regulators and car companies, but cheap Chinese tire makers like Zhongce are taking over the low-price market. The real question is whether the company's convicted chairman will come back in September 2026 as expected and whether the thermal parts business (which now makes up half the company's revenue but barely makes money) can get better at turning sales into profit.
Why
01
AI pressure: None apparent. Tires are physical rubber products; AI tools help design compounds but nothing digital replaces the tire itself. Could AI do the core job? Unlikely.
02
Bigger players: Chinese tire makers Zhongce and Sailun. Chinese makers undercut Hankook on price in commodity tires, but haven't broken into premium OE fitment yet. Could a giant copy it? No, they are blocked.
03
What protects it. OE contracts locked into 300 vehicle models across 40 brands, plus certification barriers that keep cheap rivals out of premium fitment.
What would change this call
Chairman Cho Hyun-bum's expected September 2026 release and return to active management. Would show whether governance risk resolves cleanly or triggers renewed instability.
Hanon Systems operating margin in next 2-3 quarterly reports versus current 2.5%. Would show whether the low-margin acquisition drags group profitability or improves.
Chinese tire makers' share gains in EU/US premium or OE segments beyond commodity tiers. Would show whether low-cost competitors are breaking into Hankook's protected high-margin business.
Hanon Systems operating margin in next 2-3 quarterly reports versus current 2.5%. Would show whether the low-margin acquisition drags group profitability or improves.
Chinese tire makers' share gains in EU/US premium or OE segments beyond commodity tiers. Would show whether low-cost competitors are breaking into Hankook's protected high-margin business.
Key numbers
- Tire revenue hit KRW 10.3T, up 9.6% year over year
- Tire operating margin: 16.3% vs Hanon's 2.5%
- High-inch tires (18+) reached 47.8% of sales
Named risks
- Chairman Cho Hyun-bum's expected September 2026 prison release and management return creates governance uncertainty.
- Hanon Systems thermal-management segment margin stuck at 2.5% versus 16.3% for tires drags group profitability.
- US 13.03% and evolving EU antidumping duties raise cost and legal exposure in two largest export markets.
- Chinese low-cost tire makers eroding commodity segment share.
- Ongoing family succession dispute and shareholder derivative litigation over chairman compensation.
Rivals, as read in July 2026
| Rival | Direction | Evidence |
|---|---|---|
| Michelin | losing to | Ranked ahead of Hankook among top global tire makers by revenue, per 2026-06 industry rankings |
| Bridgestone | losing to | Larger global tire maker by revenue, industry trade rankings as of 2026 |
| Zhongce and Sailun (Chinese makers) | contesting | Eroding commodity tire segment while Hankook counters via premiumization (47.8% high-inch share, 2026-02) |
| Kumho Tire and Nexen Tire | gaining on | Hankook gets 4.3% EU antidumping duty vs their 24.4%, effective July 2026 |
| Kumho Tire (AI R&D) | contesting | Kumho runs similar AI virtual-tire modeling system since 2024, per 2026-06-23 report |
Questions people ask
- Is Hankook Tire profitable in 2026?
- Yes. Hankook's core tire business posted FY2025 revenue of KRW 10.3186 trillion, up 9.6% year over year, with a 16.3% operating margin, the first time tire sales crossed KRW 10 trillion, per results released 2026-02-04.
- Who owns Hankook Tire & Technology?
- Holding company Hankook & Company Co., Ltd. owns 30.67% of Hankook Tire & Technology directly, with chairman Cho Hyun-bum personally holding a further 7.73% as of December 31, 2025. Foreign investors hold 41.16% of shares.
- Could AI replace Hankook Tire's manufacturing or R&D jobs?
- Not manufacturing itself, physical curing and molding remain capital-intensive and DOT/ECE-certified. Hankook's 'AI Tire Recipe' virtual-testing system, reported 2026-06-23, cuts tire development time by up to 50% but is used to accelerate R&D, not eliminate the physical production process.
- Who is Hankook Tire's biggest competitor?
- Michelin and Bridgestone remain larger by global revenue, while Chinese makers Zhongce and Sailun are eroding the low-cost commodity tire segment. Hankook also now faces new thermal-management rivals via its Hanon Systems acquisition completed 2025-01-07.
- How are US and EU tariffs affecting Hankook Tire?
- The US Commerce Department finalized a 13.03% antidumping duty on Korea-origin Hankook tires on 2026-07-13, while the EU set a comparatively low 4.3% duty on Hankook in July 2026, versus 24.4% for Korean rivals Kumho and Nexen, reflecting Hankook's Hungary manufacturing base.
- Is the Hanon Systems acquisition hurting Hankook's overall margins?
- Yes, in FY2025 Hanon Systems' thermal-management segment generated KRW 10.8837 trillion in revenue but only a 2.5% operating margin, versus 16.3% for the core tire business, despite operating profit rising 184.5% year over year, per 2026-02-04 results.
Timeline
- 2026-07-23EU imposes 4.3% antidumping duty on Hankook, far below 24.4% rate for Kumho and Nexen
- 2026-07-13US Commerce Department finalizes 13.03% antidumping duty on Korea-origin Hankook tires
- 2026-05-08South Korea's top court finalizes chairman Cho Hyun-bum's 2-year prison sentence
- 2026-02-20Cho Hyun-bum resigns as CEO and board director, retains chairman title
- 2026-02-04FY2025 results show tire revenue crossing KRW 10.3 trillion for first time
- 2026-01-29Hankook Tire's US subsidiary sues seeking refund of IEEPA reciprocal tariffs
- 2025-01-07Hankook & Company Group completes acquisition of 54.77% stake in Hanon Systems
- 2023-12-17MBK Partners' hostile tender offer for Hankook & Company fails
Revision history
25 July 2026
First assessed. Defensible for now. The text above is fixed as of this date and is not edited afterwards.
In the same band
Sources
- Hankook Tire Reports 2025 Revenue (2026-02-04)
- 2025 U.S. Original Equipment Tire Customer Satisfaction Study (2026-03-20)
- Hankook & Company Group Completes Acquisition of Hanon Systems (2025-01-07)
- 2025 4Q Financial Results IR deck (2026-02-04)
- Top court upholds two-year prison term for Hankook & Co. chair (2026-05-08)
- Cho Hyun-bum quits Hankook board amid family feud and shareholder pressure (2026-02-20)
- Cho Hyun-bum to exit prison in September (2026-05-08)
- MBK raises bid to acquire Hankook Tire as family feud heats up (2023-12-17)
- Final Results of the Antidumping Duty Administrative Review (2026-07-13)
- EU tariffs accelerate Korean tire makers' China exit (2026-07-23)
- 'AI Tire Recipe' Cuts Development Time by 50% (2026-06-23)
- Hankook Tire & Technology