Korea’s three tire makers seek new growth engines by investing in startups

[Photo provided by Hankook & Company Group]

South Korea’s three tire companies - Hankook Tire & Technology Co., Nexen Tire Corp. and Kumho Tire Co. - are seeking to foster new growth engines through investments in local and foreign startups as the automobile market is rapidly moving toward electrification and eco-friendly businesses.

According to sources from the tire industry on Monday, Hankook & Company Co., the holding company of Hankook & Company Group, formerly Hankook Tire Group, recently acquired the autonomous driving unit of 3Secondz, a startup specializing in driving data, and began developing tires for future vehicles. Hankook Tire is reportedly conducting self-driving tests at its tire test track by applying 3Secondz’s real-time test vehicle control system and unmanned test solution.

“Applying autonomous driving technology to driving tests can collect more driving data without drivers, which is ultimately beneficial for tire development,” said an official from Hankook Tire. Hankook Tire is also seeking to build an integrated artificial intelligence data platform in collaboration with global cloud service providers Amazon Web Services Inc. and Snowflake Inc.

Nexen Tire recently drew attention by investing in Automotus Inc., a traffic management and analysis startup founded in the U.S. in 2017. Automotus developed automated curbside management solutions to help cities reduce congestion, emissions and safety hazards on their streets. Using Automotus’ camera-based AI technology, cities can automatically collect, analyze and manage all forms of curbside activity, including passenger vehicle parking and ride-hailing pickups and drop-offs.

Automotus is currently operating in major U.S. cities, including Boston and Miami, and is seeking to enter overseas markets such as Europe. Nexen Tire is also expected to seek to expand its global business through this investment.

Kumho Tire is seeking to commercialize a bus monitoring service in collaboration with Suncheon Transportation, a local transportation company. It is a service that uses monitoring and recognition technologies to check the conditions of bus tires and inform drivers. The industry sees this move as an effort by the tire company to launch a new business aimed at increasing vehicle fuel efficiency and reducing tire replacement costs as well as preventing accidents.