Lead Engineering develops next-generation SiC equipment; preparations underway for mass production of lithium-metal anode sheets.
Merger with Polynique Care aims to streamline operations, improve cash flow, and support new business investments.
IL Corp (307180) has announced plans to position robotics and physical artificial intelligence (AI) as its core growth pillars, while simultaneously fostering its semiconductor equipment and battery materials businesses. The company intends to reinvest profits generated from its existing automotive electronics and Intelligent Transport Systems (ITS) divisions into these new ventures, tailoring commercialization and customer acquisition strategies to each business stage.
In September, IL Corp acquired an 80% stake in Lead Engineering for 12.8 billion won, consisting of 5 billion won in cash and 7.8 billion won in convertible bonds (CB). In a written interview with Market Times, the company stated it aims to commercialize next-generation silicon carbide (SiC) power semiconductor equipment and expand its client base. In the solid-state battery materials sector, the company is preparing for the mass production of lithium-metal anode sheets at its third plant in Cheonan.
Q. What is the background of the Lead Engineering acquisition and your growth strategy?
A. Established in 2006, Lead Engineering is a semiconductor heat treatment equipment firm with nearly 20 years of expertise in furnace and rapid thermal processing (RTP) technologies. It has supplied SiC equipment to ON Semiconductor since 2021 and has maintained a business relationship with SK hynix since 2007.
We are currently developing second-generation SiC RTP and 1350℃-grade SiC oxidator equipment. SiC power semiconductors are seeing expanded applications in AI data center power supplies, energy storage systems (ESS), renewable energy, and power grids.
While the SiC equipment market has been dominated by a few foreign firms like Germany's Centrotherm, Japan's TEL and Kokusai, and the Netherlands' ASM, Lead Engineering is strengthening its position through localization. We are also considering expansion into next-generation power semiconductor equipment, such as gallium nitride (GaN).
Lead Engineering maintains a stable financial structure with approximately 10.3 billion won in recent annual revenue, 1 billion won in net profit, and a debt-to-equity ratio of about 27%. Our internal goal is to reach 88.8 billion won in revenue by 2030.
Q. What is the status of the solid-state battery materials business?
A. IL Corp has secured process technology that induces uniform lithium electrodeposition and forms a protective layer during charging and discharging, effectively suppressing dendrite growth—the greatest challenge in solid-state batteries. We have completed practical verification of a US patent (US 10,177,388 B2) transferred from Gachon University.
Regarding production infrastructure, we secured a 4,423㎡ site for our third plant near the Cheonan Smart Factory in September 2025. We have completed a three-stage roadmap: technology verification, site acquisition, and production infrastructure approval. The third plant will house both the lithium-metal anode sheet line and a mobility lamp production line.
We are currently collaborating with domestic and international automakers and robotics companies to install mass production lines and ship prototypes. We are also exploring the potential for integration with humanoids, as lithium-metal anodes offer higher energy density than traditional graphite anodes, making them ideal for weight-sensitive devices.
Q. What is the purpose and financial impact of the merger with Polynique Care?
A. On October 29, IL Corp decided to absorb its wholly-owned subsidiary, Polynique Care. The merger is a non-dilutive, zero-share issuance transaction. The primary goal is to integrate operational systems to ensure the stable fulfillment of a 10,000-unit scalp care device supply contract with Atomy, while reducing redundant management costs.
The merger does not involve new cash outflows, as the company's receivables from Polynique Care will be extinguished upon consolidation. Post-merger, the revenue from the scalp care device business will accrue directly to IL Corp, and we expect a reduction in costs associated with operating a separate entity.
Q. How are you managing cash flow and convertible bond (CB) obligations?
A. While the operating cash flow for the first half of the year was approximately -15.9 billion won, the cumulative figure through September improved to -16.4 billion won, indicating a significant reduction in net outflow during the third quarter. We are focusing on improving operating cash flow through inventory conversion and accounts receivable management.
As of November, the outstanding balance of the 6th to 9th series CBs totals 29.9 billion won. We exercised a call option on 50% of the 7th series CBs to acquire them as treasury bonds, with plans to either resell or retire them. The conversion of the remaining 50% of the 7th series CBs is helping to resolve the overhang issue associated with low conversion prices.
Q. What are your investment priorities and core growth pillars?
A. IL Corp follows a two-track strategy: maintaining the automotive electronics and ITS businesses as stable cash generators, and reinvesting those profits into future growth areas like humanoids and physical AI. As a 'Physical AI Data Platform' company, our core growth pillars are robotics and physical AI. We aim to create a virtuous cycle involving humanoid supply, field operations, data acquisition, AI advancement, and Robot-as-a-Service (RaaS) models, while increasing data subscription revenue through 'P-Datum'.
