[Insights from the CTO](16) "Unmatched R&D Speed... Focusing on Ultra-High Voltage Submarine Cables"

"A Different Development Speed"...
'One Engineer, a Hundred Roles'
"HPFF Replacement Solution Proven in New York, USA"
"AI Industry: Ultimately, the Key Is Power"...
Exploring Future Growth Engines

Editor's NoteKorea's industry is facing a comprehensive crisis. The business environment is deteriorating due to soaring raw material prices, the restructuring of global supply chains, and the ongoing US-China trade conflict. Ultimately, technology is the key to overcoming this crisis. Technology is the lifeline and the very reason for a company's existence. This is why companies are placing greater emphasis on the role of the Chief Technology Officer (CTO). The CTO is no longer just responsible for developing new technologies; they have become strategists who analyze changing markets and present a vision for the future of their companies. Asia Economy met with CTOs of major domestic companies to discuss the core technologies and differentiation strategies that each industry is focusing on. Through an exploration of the technology strategies of leading companies, we seek ways to strengthen the competitiveness of Korean industry and create future value.

Hyunju Kim, Chief Technology Officer (CTO, Executive Director) of Korea Electric Wire, is being interviewed by Asia Economy at the office in Seocho-gu, Seoul. Photo by Yongjun Cho

Hyunju Kim, Chief Technology Officer (CTO, Executive Director) of DaeHan Electric Wire, stated, "Underground cables have reached a certain limit," and added, "Since all energy sources such as wind and solar require direct current, we see high-voltage direct current (HVDC) as the driving force for the future." DaeHan Electric Wire, Korea's first comprehensive electric wire company, is positioning HVDC submarine cables as a core growth engine for the future. Once the second submarine cable plant currently under construction in Dangjin, Chungcheongnam-do, comes into full operation, the company expects to achieve world-class production and installation capabilities, ranking among the global top five.

In an interview with Asia Economy at the DaeHan Electric Wire headquarters in Seocho-gu, Seoul, CTO Kim said, "We are currently focused on HVDC submarine cables," and explained, "Once the second plant is completed, we will have the capacity to produce 640kV cables, and we are proceeding as planned to complete certification by then." The current Dangjin plant (with an area of 350,000 square meters) has an annual production capacity (CAPA) of 29,220 tons for ultra-high voltage cables. The first submarine cable plant, which will be fully completed this month, produces internal network (154kV) and external network (345kV) cables, while the second submarine cable plant, which will begin construction in the second half of this year with the goal of starting operations in 2027, will produce external network (400kV) and HVDC (640kV) cables.

DaeHan Electric Wire is aiming to gain global leadership through the expansion of its production bases. CTO Kim said, "The global submarine cable market is expected to see a sharp increase in demand starting in 2027," and added, "We aim to enter the global top five or six with our turnkey competitiveness, from production to installation." He also noted, "Through preliminary sales activities, we have already established partnerships with National Grid in the UK, Ocean Winds in Spain, and MEO in Singapore."

When asked about DaeHan Electric Wire's unique strengths, CTO Kim emphasized, "If you invest in equipment, you can catch up in cable production, but it is difficult to enter the market for cable accessories. DaeHan Electric Wire has a clear competitive edge because we develop cable accessories in-house." He continued, "We were the first to develop 500kV-class cable accessories, and once the HVDC-dedicated test facility at the submarine cable production base is completed, the speed of technology internalization will accelerate even further."

"A Different Development Speed"…'One Engineer, a Hundred Roles'

Kim Hyunju, Chief Technology Officer (CTO) and Executive Director of Korea Electric Wire, is explaining about cables in an interview with Asia Economy at the office in Seocho-gu, Seoul. Photo by Jo Yongjun

DaeHan Electric Wire, which once struggled with financial difficulties, rapidly improved its financial structure after being incorporated into Hoban Group in May 2021, thanks to the group's solid financial resources and active support. The large-scale investment totaling 940 billion won in the first and second Dangjin submarine cable plants was made possible by this financial recovery.

In particular, in December 2023, the company invested 50 billion won to acquire Palos, Korea's only cable laying vessel (CLV) for submarine cables (6,200-ton class), and is also considering securing an additional 10,000-ton class CLV to further strengthen its submarine cable installation capabilities.

Such bold investments are possible thanks to the engineers' "exceptional speed." CTO Kim highlighted, "Our engineers are so capable and united that they can complete in five years what would normally take ten," and added, "We proved our technological competitiveness in the US by winning and executing every 500kV project there." DaeHan Electric Wire entered the 500kV ultra-high voltage alternating current (HVAC) cable market relatively late in 2008, but succeeded in developing the product and supplying it to the US market within just five years.

CTO Kim, who leads technology development, always emphasizes the "field." Having been with DaeHan Electric Wire for 34 years since 1991, he has accumulated experience both domestically and at overseas sites such as Singapore and Northern Ireland, and has served as head of the development team. CTO Kim explained, "By delivering cable accessories and overseeing installation on-site, I was able to gain experience in the entire process from development to installation," and added, "Even now, I teach engineers to always be involved on-site, and I minimize interference so that they can focus solely on development."

"HPFF Replacement Solution Proved in New York, USA"

Ultra-high voltage XLPE cable by DaeHan Electric Wire. DaeHan Electric Wire

The global power market is seeing significant demand not only for new data centers driven by the development of the artificial intelligence (AI) industry, but also for the replacement of aging power grids. DaeHan Electric Wire is enhancing its competitiveness by developing a "high-pressure fluid-filled (HPFF) power grid replacement solution." CTO Kim proudly stated, "DaeHan Electric Wire is the only company in Korea that can both develop and install such a solution."

The HPFF solution, developed by DaeHan Electric Wire, uses specialized cables and a directional laying method, enabling rapid work even in complex urban areas or regions with dense traffic and crowds. The new cables, designed with a twisted structure to reduce their outer diameter, can be installed in the narrow conduits of older infrastructure, making it a true "total solution." The directional laying device has already been patented in the US and Australia.

CTO Kim explained, "The HPFF solution combines three single-core XLPE (cross-linked polyethylene) cables into one to reduce the outer diameter, allowing it to be applied to old conduits," and added, "Even in complex city centers, we can complete installation and withdrawal quickly with just one lane secured." DaeHan Electric Wire demonstrated its technological competitiveness last year by successfully replacing the aging power grid in downtown New York, USA.

"AI Industry: Ultimately, the Key Is Power"...Exploring Future Growth Engines

Kim Hyunju, Chief Technology Officer (CTO, Executive Director) of Korea Electric Wire, is being interviewed by Asia Economy at the office in Seocho-gu, Seoul. Photo by Jo Yongjun

In addition to power transmission, DaeHan Electric Wire is expanding its business portfolio to include cables for robots, wireless power transmission and communication solutions, and the aviation and space industries. The company has established a new research planning team within its R&D center to explore new business opportunities. In particular, superconducting cables, which are considered the "power grid of the future," are expected to become a future growth driver, as they can transmit large currents at low voltage with almost no power loss during transmission.

In May last year, the company tripled the size of its dedicated bus duct plant within the Dangjin cable factory and introduced new core equipment. This investment aims to enhance both production efficiency and technological competitiveness. The company also expanded its existing polyethylene terephthalate (PET) insulation facilities.

Especially, DaeHan Electric Wire is focusing on meeting the power demand resulting from the expansion of the AI industry. CTO Kim said, "The AI industry consumes a lot of power, so ultimately, the power grid is the key," and added, "DaeHan Electric Wire plans to apply the cooling technology developed for superconducting cables to AI server cooling and other related fields."