KT Submarine Acquires Korea's Only Submarine Cable Laying Vessel

"Synergy with LS Cable & System and LS Cable & System Asia"

[Asia Economy Reporter Moon Chaeseok] KT Submarine (KTS), a specialist in underwater construction, announced on the 1st that it will purchase the GL2030, the only domestic submarine cable laying vessel, from GL Marine, a subsidiary of LS Cable & System, for approximately 39 billion KRW.

After acquiring the submarine cable vessel, KTS plans to strengthen its construction capabilities and prepare to enter the rapidly growing domestic and international offshore wind power markets.

The GL2030 will be deployed in domestic projects such as the LS Cable & System Jeju 3-connection submarine cable construction project. This project connects about 90 km between Wando County in Jeollanam-do and Jeju Island. The industry estimates the construction cost to be in the range of 100 billion KRW. The company stated, "Participation in the project will significantly increase our performance."

Undersea cable laying ship GL2030. [Photo by KT Submarine]

In cooperation with LS Cable & System, LS Cable & System Asia, and others, KTS plans to utilize the GL2030 for offshore wind farm construction centered in ASEAN and submarine connection projects in island regions.

Last year, LS Cable & System expanded its submarine business by securing submarine cable supply contracts worth about 1.2 trillion KRW in the UK, the US, Taiwan, and other countries. LS Cable & System currently holds a 16.2% stake in KTS, making it the second-largest shareholder. If it exercises its call option between April and July, it will become the largest shareholder.

Lee Seung-yong, CEO of KTS, said, "The acquisition of the GL2030 will be a momentum for growth," adding, "We expect cooperation and synergy with LS Cable & System to expand as well."