Approval of EV Relay Business Spin-off at LS Electric Shareholders Meeting

Chairman & CEO Gu Ja-gyun: "No Plans for New Corporation Listing"

[Asia Economy Reporter Park Sun-mi] LS Electric approved the physical division plan, which mainly involves separating the EV relay business, a component for electric vehicles, as originally proposed at the shareholders' meeting on the 28th.

On the 28th, LS Electric announced that at the 48th regular shareholders' meeting held at LS Tower in Anyang City in the morning, the physical division plan for the EV relay business was passed as originally proposed. The EV relay is a key electric vehicle component that supplies and cuts off electric energy to the powertrain driving electric and hydrogen vehicles. Thanks to the expanding electric vehicle market, the business is expected to have promising future growth potential.

LS Electric plans to spin off the EV relay business segment from its existing operations to establish a new company, proceeding with a simple physical division method in which LS Electric will acquire all issued shares of the new company. The newly established company will be a non-listed corporation. Accordingly, the new company LS e-Mobility Solutions, which will handle the EV relay business, will launch on April 1.

At the shareholders' meeting, some shareholders opposed the physical division plan of the EV relay business, expressing concerns about dilution of LS Electric's shareholder value. Koo Ja-kyun, CEO and Chairman of LS Electric, stated, "The LS Group will focus on digital transformation as the core driving force for the next 10 years," adding, "LS Electric, leading the digital industry, will be the key affiliate spearheading the group's growth." He reassured shareholders by saying, "The main businesses of LS Electric, power and automotive, and the EV relay business are fundamentally different. The newly established company focusing on the EV relay business will be listed, but this will not cause a decline in the shareholder value of the existing LS Electric."

Meanwhile, LS Electric also passed a proposal to amend its articles of incorporation to add business purposes related to electric vehicle charging and discharging services, infrastructure construction for electric vehicle charging and discharging, manufacturing and sales of electric vehicle chargers, and charging and discharging equipment, after separating the EV relay business. Additionally, the approval of financial statements and consolidated financial statements, the appointment of directors, the appointment of audit committee members, and the approval of director remuneration limits were all passed as originally proposed.