LS Electric Acquires KOC Jeongi... Targeting Global Power Infrastructure Market

Investment of 59.2 Billion KRW to Acquire 51% Stake

LS Electric is accelerating its entry into the overseas power infrastructure market by acquiring a strong small and medium-sized enterprise (SME) with advanced technology in the ultra-high voltage transformer sector.

KOC Electric Ulsan Factory View / [Photo by LS Electric]

On the 23rd, LS Electric announced that its board of directors approved an investment of a total of 59.2 billion KRW to acquire a 51% stake in the domestic small and medium transformer manufacturer 'KOC Jeon-gi'. It also explained that to secure financial soundness, it eliminated external borrowing by selling some of its treasury shares to LS Corporation. This move aims to enhance its responsiveness to the growing global power equipment market.

Founded in 1979, KOC Jeon-gi is a comprehensive transformer manufacturer with operations in Busan and Ulsan. It is one of the top five domestic companies supplying ultra-high voltage transformers to Korea Electric Power Corporation (KEPCO). It is also the number one domestic company specializing in ship-specific transformers, a type of special power equipment. It counts the top three domestic shipyards and numerous overseas shipbuilders among its customers. Its annual sales reached 95.3 billion KRW as of last year.

After acquiring KOC Jeon-gi, LS Electric plans to expand ultra-high voltage transformer manufacturing facilities, aiming to more than double production capacity (CAPA) by the end of next year. Once the expansion of KOC Jeon-gi is completed, it will have a total ultra-high voltage transformer CAPA worth 500 billion KRW by 2026.

An LS Electric official said, "By acquiring a strong and solid SME with the highest domestic technological capabilities, we can maximize synergy in the ultra-high voltage transformer business." He added, "Through cooperation with KOC Jeon-gi, we will proactively respond to the rapidly expanding overseas market and enter an accelerated growth trajectory."