Welcron shifts focus from bedding to ballistic plates, targets 50 billion won in defense sales

[Financial News]  Welcron, known as a microfiber bedding maker, is restructuring its business around body armor and protective materials for armored vehicles. Building on its share of the domestic ballistic plate market, the company is expanding its supply portfolio to include add-on armor for military vehicles and naval vessels, making defense a new growth engine.
On the 19th, Jeon Young-dae, a researcher at Stunning Value Research, said Welcron was “a protective-materials specialist with a 70% share of the domestic ballistic plate market, expected to benefit from expanding K-defense exports.” No investment recommendation or target price was provided.
Welcron’s defense revenue rose 132%, from 11.1 billion won in 2024 to 25.8 billion won last year.
The company is targeting defense revenue of 50 billion won in 2029. If achieved, that would be about 4.5 times its 2024 figure.
Growth is being driven by demand to replace protective equipment and by the diversification of products supplied.
With replacement demand expected for next-generation body armor and personal protective equipment for the armed forces, which number about 300,000 personnel, Welcron is expanding its business beyond lightweight ballistic plates to add-on armor for armored vehicles, tactical vehicles and naval vessels.
The company has also expanded production capacity. It strengthened its mass-production capabilities for ballistic composite materials by expanding its defense plant in Gimhae and investing in additional autoclaves. Its in-house production process, from raw-material processing through molding and inspection, is also considered a competitive advantage.
Stunning Value also pointed to Welcron’s links to the supply chains of overseas defense companies. Welcron has supplied add-on armor for Hyundai Rotem Company’s K808 wheeled armored vehicle and Hanwha Aerospace’s Tigon wheeled armored vehicle platform, among others. The analysis said opportunities to supply related protective materials could also increase if South Korean defense companies expand their overseas exports.
Researcher Jeon said, “The product lineup is expanding from personal protective equipment into high-value-added protective materials for military vehicles,” and assessed that “higher defense revenue and increased utilization of production facilities could lead to improved profitability.”
However, the scale and timing of any new orders for Welcron resulting from expanded overseas defense exports remain to be seen. Whether growth in the defense division translates into improved company-wide results is expected to be key to a re-rating of the company’s valuation.
[email protected] Kim Gyeong-a Reporter