The proceeds will help expand production of navigation components and develop new products for high-power laser weapons, precision processing and power-grid monitoring, CEO Lee Young-woo said at a pre-IPO press conference Monday.
“Even if an investment carries risks, we will pursue it and learn from the experience,” Lee told AJP. “We will focus our capabilities on narrowly defined areas where we can differentiate ourselves from others.”
Founded in 2004, Optonics makes optical components for gyroscopes, sensors that detect rotation. These are used in inertial navigation systems, which calculate position, speed and orientation from measured movement without relying on Global Positioning System (GPS) signals.
The company supplies Hanwha Aerospace with components for navigation systems used in multiple-launch rockets, surface-to-air missiles and tanks. Such systems can continue providing navigation information when satellite signals are unavailable or disrupted.
Lee said Optonics is South Korea’s only manufacturer to mass-produce core optical components for both ring laser gyroscopes and fiber-optic gyroscopes. Both use light to detect rotation: the former directs laser beams around a closed path, while the latter sends light through coils of optical fiber.
The company says its competitive edge lies in handling key manufacturing processes in-house, from precision polishing and coatings that minimize light loss to machining and optical bonding.
Its place in the defense supply chain also creates a barrier to replacement. Components, materials and manufacturing processes are tied to approved weapon designs, meaning a change of supplier requires further testing and approval, Lee said.
Optonics plans to invest 14.18 billion won of its IPO proceeds in a fiber-coil production line, expanding its range of fiber-optic gyroscope components beyond optical chips and light sources. It aims to complete preparations for mass production in the fourth quarter of 2027 and begin deliveries in 2028.
The line is intended to supply components for South Korean military equipment sold overseas.
Fiber-optic gyroscope components have become a growing source of revenue since mass production began in 2023. Sales rose from 980 million won that year to 4.94 billion won in 2025, then reached 3.31 billion won in the first half of this year — 26.8 percent of consolidated revenue.
Ring laser gyroscope components remain the largest business, accounting for 67.1 percent of revenue last year.
Companywide revenue rose from about 18.9 billion won in 2023 to 24.8 billion won in 2024 and 25.6 billion won in 2025. Operating profit fell from about 3.3 billion won to 1.4 billion won in 2024 before recovering to 3.6 billion won last year, when its operating margin reached 14.1 percent.
First-half revenue this year totaled 12.35 billion won, with operating profit of 1.42 billion won.
Outstanding orders stood at 25.66 billion won at the end of September, roughly equivalent to last year’s revenue, with deliveries scheduled through 2030.
Alongside its established navigation business, Optonics is developing diffraction gratings — optical components that help combine several laser beams into a single, more powerful beam — for high-power laser weapons. It is also developing components for ultrashort-pulse lasers used in precision processing.
For power grids, the company is working on fiber-optic sensors that measure electrical current in high-voltage direct-current transmission systems, which carry large amounts of electricity over long distances. It has signed a technology development services agreement with a domestic power-equipment manufacturer.
Its next-generation navigation work includes participation in the development of smaller gyroscopes. Separately, it supplies atomic vapor cells used in gyroscopes that detect rotation through the properties of atoms.
Lee outlined a long development horizon for the new businesses: about five years for market entry, followed by a growth phase from 2030 to 2035 and a maturity phase from 2035 to 2040.
“We survived the past 20 years, that’s what matters,” he said. “The challenge now is to build on these new technologies and survive the next 20.”
The listing is also intended to help recruit researchers.
“Finding highly skilled researchers is really difficult,” Lee told AJP. “We see the IPO as a way to attract world-class talent.”
He linked the company’s manufacturing capabilities to South Korea’s ability to sustain its own defense supply chain.
“We take pride in developing technology that eventually makes South Korea stronger,” he said.
Asked how he hoped the company would be perceived, Lee pointed to its approach to technology and management’s commitment.
“I hope people will say, ‘This company thinks a little differently,’ and ‘Its management is passionate about what it does,’” he said.
Optonics plans to offer 2.2 million shares at an indicative price of 10,000 won to 12,000 won each, raising between 22 billion won and 26.4 billion won.
Institutional bookbuilding runs through Tuesday, followed by retail subscriptions on Nov. 5–6. The company targets a Nov. 17 KOSDAQ debut, with Korea Investment & Securities as lead underwriter.
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