Surging Global Offshore Wind Power Drives Rise of Korean Cable Manufacturers

Expansion of Offshore Wind Power in Europe and China:
Average Annual Growth of 27 Percent
LS Cable & System and Taihan Cable & Solution
Accelerate Expansion of Submarine Power Cable Capacity

Recently, the United States, China, and Europe have been accelerating the expansion of all possible power generation sources, driven by surging demand for artificial intelligence (AI) data centers. In South Korea, the "Special Act on Promoting Offshore Wind Power Deployment and Fostering the Industry" will take effect in March next year, which is expected to expedite permitting processes and invigorate offshore wind power projects. As offshore wind power expands, the need to strengthen the power transmission grid has naturally emerged as a key issue.

Rapid Increase in Offshore Wind Power Projects

On September 19, IBK Investment & Securities released a report titled "Offshore Wind Power Means Submarine Cables," forecasting that as offshore wind projects are launched worldwide, demand for submarine power cables will continue to grow, benefiting domestic cable manufacturers.

Driven by projects in China and Europe, the compound annual growth rate (CAGR) of new global offshore wind installations is projected to reach 27.4% between 2024 and 2030. In South Korea, the government plans to expand wind power capacity from 2.3GW as of last year to 18.3GW by 2030 and 40.7GW by 2038.

The global submarine cable market for telecommunications is dominated by three companies: SubCom of the United States, ASN of France, and NEC of Japan. However, as offshore wind power expands, domestic companies are ramping up investment in facilities for submarine power cables. Global business opportunities for Korean companies are expected to increase.

Domestic Cable Manufacturers Accelerate Plant Expansion

LS Cable & System is expanding its Donghae HVDC (High Voltage Direct Current) submarine cable production facilities and is also building the largest HVDC submarine cable manufacturing plant in the United States, aiming for completion in the third quarter of 2027.

Taihan Cable & Solution completed the second phase of construction for its first HVDC submarine cable plant in June this year, and in September began the first phase of construction for its second plant, targeting completion in the second half of 2027. The company has also recently expanded its value chain from manufacturing to installation and maintenance by incorporating a submarine cable installation subsidiary.

LS Marine Solution is strengthening its global installation capabilities by ordering an ultra-large cable-laying vessel with a loading capacity of 13,000 tons and upgrading its equipment. Notably, the timing of the new vessel's operation is expected to coincide with the start of mass production at LS Cable & System's U.S. submarine cable plant in the first half of 2028, significantly enhancing the group's ability to secure global turnkey contracts.

LS Eco Energy, the top cable company in the Vietnamese market, is pursuing the establishment of an HVDC submarine cable plant through a joint venture with a Vietnamese state-owned enterprise. If the project proceeds smoothly, LS Eco Energy is expected to benefit in the medium to long term as Vietnam emerges as a hub for offshore wind power in Southeast Asia.