LS Cable & System unveiled bold plans to significantly expand its global presence and revenue, aiming to reach 10 trillion won ($7.5 billion) by 2030 through strategic investments in subsea cables and AI-driven data center solutions while also considering a future IPO. CEO Koo Bon-kyu shared these ambitions during the company’s “Value-Up Day” event on Sept. 5 in Yeouido, Seoul.
This marked the first time since Koo took the helm in 2022 that he has publicly announced the company’s business strategies. Industry insiders suggest that LS Cable & System’s strong performance, driven by the ongoing supercycle in the power grid sector, has emboldened the CEO to outline his ambitious plans.
LS Cable & System, the top wire and cable manufacturer in South Korea and the third-largest globally, focuses on two core businesses: subsea cables and power solutions for data centers. With these two sectors, the company aims to capitalize on the soaring demand for power infrastructure and make a significant leap in growth. Last year, LS Cable & System recorded over $4.5 billion in revenue, with a target to expand this to $7.5 billion by 2030.
The company’s flagship product is subsea cables. In 2007, LS Cable & System became the fourth company in the world to successfully develop high-voltage direct current (HVDC) cables, marking the beginning of its venture into this sector. HVDC technology is more efficient over long distances compared to alternating current (AC), which results in less transmission loss.
With the increasing construction of offshore wind farms worldwide, the demand for subsea cables, essential for transmitting electricity generated offshore to the mainland, has surged. However, only six companies globally, including LS Cable & System, are capable of supplying these cables.
At the event, Ko Eui-gon, an executive at LS Cable & System, explained that by 2040, the U.S. is projected to experience an annual shortage of approximately 2,000 kilometers of subsea cables. He added that the company intends to address this demand by making the U.S. its second domestic market through global localization efforts.
The company’s localization efforts are already well underway. LS Cable & System, which already operates the largest cable factory in S. Korea, has finalized plans to build the largest subsea cable facility in the U.S., located in Virginia. With an investment of approximately $750.1 million, the plant will feature a world-leading 200-meter-tall production tower and is slated for completion by 2027. The company is also exploring similar strategies in the UK and Vietnam to expand its presence in European and Asian markets.
Koo Bon-kyu emphasized, “We will differentiate ourselves with turnkey solutions that cover everything from cable supply to installation and maintenance, in collaboration with our subsidiary, LS Marine Solutions.” LS Marine Solutions will handle the installation and maintenance of cables produced by LS Cable & System. Koo is set to become the CEO of LS Marine Solutions following shareholder and board approval in October.
As for future ventures, the company is focusing on AI data center solutions in response to the growing power consumption challenges driven by the increasing demand for data centers from major global tech companies like Google, Amazon, and Microsoft.
Recently, LS Cable & System launched the world’s first superconducting solution for data centers, which completely eliminates power loss. Shin Young-sik, Vice President of LS Cable & System, noted, “Superconducting cables can transmit large currents far more efficiently and stably than traditional methods, and they have the added advantage of not generating electromagnetic waves.”
During the event, Koo also addressed the possibility of an initial public offering (IPO) for LS Cable & System. He said, “I believe the current power market is in a long-term trend that will last around 15 years, so the growth outlook is bright. However, showing investors that we are already making significant profits is our priority. We will consider an IPO after that. It’s not something in the distant future.”
