IL (CEO Song Seong-geun), a new technology materials company, announced in a public disclosure on the 4th that it has decided to merge with its subsidiary Itronics. This merger is more than just a simple equity consolidation; it marks a strategic turning point for IL's expansion into future mobility and smart infrastructure businesses. It is expected to have positive effects in various areas, including improving its financial structure, strengthening its technological competitiveness, and maximizing profits.
IL entered the automotive electronics market by successfully developing and commercializing a silicon-based LED lens. Itronics, a company with ITS technology related to Hi-Pass lane control systems and autonomous driving, has installed systems in 162 of the 437 highway tollgates nationwide, securing a market share of approximately 37%.
Through this merger, IL will directly reflect Itronics' performance in its corporate financial statements, achieving two goals: improving financial soundness and profitability while accelerating external growth. Notably, IL plans to secure cash flow through the sale of assets, including Itronics' Yongin headquarters, and accelerate the reduction of its convertible bond burden. This is expected to not only improve short-term liquidity but also strengthen the overall stability of its financial structure, including a reduction in its debt ratio. Furthermore, the merger will allay market concerns about the dilution of the parent company's value due to duplicate listings and significantly enhance shareholder value by simplifying its corporate structure.
On the technology front, the combination of Itronics' C-ITS and V2X technologies with IL's silicon lens-based optical solutions will enable the internalization of core technologies required for building smart city and autonomous driving infrastructure. Through this merger, IL plans to establish a bridgehead for expanding its road traffic infrastructure business and further diversify its business portfolio, maximizing profits and strengthening its technological competitiveness in the global market.
IL is currently targeting the global automotive lighting market based on its silicon lens technology, while also targeting the global ITS and autonomous driving infrastructure market, which market research firm Grand View Research projects will grow to approximately KRW 100 trillion by 2032. Furthermore, the company is accelerating the development of cathode metal sheet material technology for all-solid-state batteries, thereby completing the value chain for key components of future vehicles.
An IL official stated, “This merger is a strategic decision to maximize technological and business synergies and strengthen competitiveness in the global mobility and ITS markets.” They added, “By improving our financial structure and stabilizing our cash flow, we will resolve financial burdens such as convertible bonds. At the same time, we will actively pursue expanding global partnerships and new orders based on our silicon lens and solid-state battery material technologies.”
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