Koo Ja-kyun, the chairman of LS ELECTRIC, noted that he is considering mergers and acquisitions (M&A) from a strategic perspective. He also stated that consistent government support is necessary to activate the energy storage system (ESS) market.
Chairman Koo said at “InterBattery 2025” held on the 5th at COEX in Gangnam, Seoul, that “strengthening the capabilities of KOC, which was acquired last year, and expanding production is a priority,” adding, “I am paying a lot of attention to distribution transformers following ultra-high voltage transformers. We are considering M&A from a strategic perspective.” LS ELECTRIC invested a total of 59.2 billion won last May to acquire a 51% equity stake in KOC Electric, a domestic small and medium-sized transformer manufacturer.
Chairman Koo said, “After acquiring a transformer company called SYMPHOS in Indonesia, it grew almost three times in a year, and there is great potential for export growth to Japan and the United States,” and added, “The key is how to expand transformer production facilities, and we will consider M&A if necessary.” LS ELECTRIC invested a total of 100.8 billion won to expand its ultra-high voltage transformer plant at its business sites in Busan. In 2026, the plan is to scale up ultra-high voltage transformer production capacity to 700 billion won annually.
He emphasized that consistent government support is necessary for the ESS industry. Chairman Koo remarked, “China has raised the industry with tremendous subsidies. To activate ESS, policies must not change each time a new administration takes over, and consistent government support for 10 to 20 years is needed.
He also expressed optimism about the global market, stating, “As word-of-mouth spreads that delivery times, quality, and prices are acceptable in the United States, our recognition is increasing and volumes are growing. I cautiously expect a major deal to materialize within this year.” He added, “Even if it is the same product, the certification process in the U.S. is stringent, and the only place that meets the distribution specifications, aside from underperforming Chinese products, is our country. I see it as a great opportunity.”