This article was displayed on the ChosunBiz MoneyMove (MM) site at 2:22 p.m. on Feb. 2, 2026.
LB PE, a private equity fund (PEF) manager that had expected a blockbuster exit (recovery of investment) through the initial public offering (IPO) of LS Power Solution (formerly KOC Electric), is growing increasingly concerned. Riding the boom in the transformer industry, it had planned to realize hundreds of billions of won in gains via a block deal (after-hours bulk trade) after the listing, but it has been tied down by LS Group's stance of withdrawing listings.
According to the investment banking (IB) industry on the 2nd, LS Group is overhauling its affiliate IPO strategy after President Lee Jae-myung directly pointed out the issue of "duplicate listings." Following LS eX Solutions, LS Eco Advanced Materials recently scrapped its IPO plan as well and chose a method in which the parent company buys back the equity. (Related article☞"A 70 billion won bill" lands on LS Group… Eco Advanced Materials also gives up IPO and repays investment)
LS Power Solution is currently expected to be valued at more than 500 billion won. From the perspective of LB PE, which sold a 37% equity stake to LS Electric for 34.2 billion won in 2024, the sale price at the time did produce a considerable gain, but in hindsight it was an opportunity to significantly boost what now looks like a somewhat disappointing return.
However, with an IPO difficult for now, it is in a position where it must recover its investment by transferring equity to LS Electric. LB PE can sell its LS Power Solution equity to LS Electric starting in May 2027. Analysts say the per-share price in a sale to LS Electric would fall short compared with the "jackpot" return from a listing.
Another regret for LB PE is that there were multiple options when it sold LS Power Solution to LS Electric. Including financial investors (FIs), about six or seven parties expressed interest in acquiring it, and LB PE is said to have negotiated with three of them. It chose to work with LS Electric, which was the most proactive and had the strongest industry understanding, but the choice has proved disappointing.
The case of LB PE and LS Power Solution is not someone else's problem for PEs. Among major affiliates within LS Group that had been awaiting listings—LS Cable & System, LS Mtron, LS E-Link, and LS EV Korea—the momentum for IPOs has fallen sharply. Contrary to the market mood cheering the KOSPI index breaking 5,000, PEF managers blocked on the listing path now have to redraw their investment exit maps from scratch.
Founded in 1974, LS Power Solution is a comprehensive transformer manufacturer that produces ultra-high-voltage transformers and mold, dry, and oil-immersed distribution transformers. It holds the No. 1 domestic market share in special transformers specialized for ships. The parent company LS Electric, which produces everything from power transmission and distribution equipment such as low- and high-voltage devices and switchboards to ultra-high-voltage transformers, acquired LS Power Solution to target overseas markets and expand its transformer lineup.
LB PE bought 100% equity in LS Power Solution from Skylake for 30.5 billion won in 2021 and sold a 37% equity stake to LS Electric for 34.2 billion won in 2024. LS Electric then invested an additional 25 billion won through a paid-in capital increase, raising its LS Power Solution equity stake to 51%.