OPmobility bets on South Korea as global future-car technology hub

French automotive supplier OPmobility plans to turn South Korea into a global hub for research, development and next-generation vehicle technologies following its acquisition of Hyundai Mobis’ lighting business, according to the head of its Korean operations.

“South Korea is no longer merely a local market. It has become a global market,” Min Sung, 56, chairman of OPmobility Korea, said in a recent interview with Maeil Business.

The French company recently signed a definitive agreement to acquire Hyundai Mobis’ lighting business for 600 billion won ($440 million), a move aimed at expanding its presence in Asia and strengthening its global automotive lighting operations.

The acquired business generated 2.5 trillion won in revenue last year and operates five manufacturing plants across South Korea, China, Mexico and the Czech Republic.

Sung described the transaction as a strategic acquisition designed to reshape OPmobility’s overall business portfolio rather than simply expand an existing division.

Europe currently accounts for roughly half of OPmobility’s revenue, but growth in the region’s automotive market has slowed. Its existing lighting business also lacked the scale needed to compete effectively with major global suppliers.

By acquiring Hyundai Mobis’ lighting operations, OPmobility aims to strengthen its position in Asia, expand its lighting business and secure Hyundai Motor and Kia as major customers.

Sung said the acquisition would add 2.5 trillion won in annual sales associated with Hyundai Motor and Kia, equivalent to roughly 15 percent of OPmobility’s total revenue.

The deal would also reduce the company’s reliance on certain European automakers by adding major Asian customers to its portfolio.

Sung highlighted the complementary strengths of the two businesses as a key advantage of the acquisition.

OPmobility specializes in bumpers, plastic exterior components and vehicle modules, while Hyundai Mobis’ lighting division brings expertise in advanced development, design and styling collaboration.

“Hyundai Mobis’ ability to jointly develop vehicle front-end designs, lighting systems and integrated sensors was highly valued,” Sung said.

He added that the combination would become increasingly valuable as automotive lighting evolves into electronic systems integrated with sensors for autonomous driving.

The acquisition was led by OPmobility’s headquarters in France. The companies signed a memorandum of understanding in January, when Sung joined the acquisition project while working at AlixPartners’ New York office.

Sung previously held positions at Ford and Visteon before serving as chief executive officer of Hanon Systems and chief commercial officer of SK On. He was appointed chairman of OPmobility Korea in June.

Sung identified South Korea’s manufacturing technology and ability to respond quickly to market changes as major strengths of its automotive industry.

He said Korean manufacturers excel at rapidly bringing new technologies into mass production while maintaining product reliability, then transferring those capabilities to factories around the world.

That industrial ecosystem, encompassing components, materials and production technologies, has enabled Hyundai Motor and Kia to incorporate new technologies into their vehicles at a rapid pace, he said.

OPmobility is also expanding its investment in South Korea. The company plans to establish a research and development center in Seongnam, Gyeonggi Province, with operations scheduled to begin next summer.

Sung said the acquisition would increase the scale of OPmobility’s Korean business from approximately 100 billion to 200 billion won annually to around 3 trillion won, significantly raising its importance within the group.

“Within three to five years, our Korean operations will become a core hub leading global development of next-generation vehicle modules and advanced technologies, rather than simply serving as a manufacturing base,” Sung said.