LS Corp. Invests 150 Billion Won in LS Cable & System Capital Increase, Raises Stake to 92.52%

Decision to Participate in Rights Offering Instead of Borrowing
"Expected to Help Enhance Shareholder Value"

LS Corp. will invest approximately 150 billion won to participate in a paid-in capital increase for LS Cable & System in order to secure a production base in the United States.

On November 26, LS Corp. announced that its board of directors had approved a proposal to acquire 1,694,915 shares of common stock in LS Cable & System at 85,000 won per share. The total investment amounts to about 150 billion won, bringing LS Corp.'s cumulative investment in LS Cable & System to 772.78 billion won and increasing its ownership stake from 92.31% to 92.52%.

Aerial view of the Virginia submarine cable factory of LS Greenlink, a US subsidiary of LS Cable & System. LS Cable & System

An LS Corp. representative stated, "This decision aims to stabilize the financial structure through participation in the paid-in capital increase, rather than by taking on debt, and to invest in high value-added businesses with significant growth potential. We expect this will not only enhance the future value of the group but also contribute to increasing shareholder value."

This investment follows LS Cable & System's paid-in capital increase plan, which was decided on October 29. The funds raised will be used for the construction of the submarine cable factory in the United States.

Previously, in April this year, LS Cable & System began construction on the largest submarine cable factory in Chesapeake, Virginia. The facility will feature the world’s tallest power cable production tower at 201 meters, a plant for winding cables into finished products, and a dedicated port facility. Completion is scheduled for 2027.

LS Cable & System expects the U.S. submarine cable market to grow at an average annual rate of over 30% over the next ten years and has decided on this proactive investment to secure a leading market position. Additionally, LS Group plans to invest 3 billion dollars (approximately 4 trillion won) in U.S. power infrastructure by 2030 to accelerate its global market expansion.