2024.11.19. The Fair Economy — Taihan Cable & Solution and KG Steel have established a strategic partnership centered on the subsea cable business.
Taihan Cable & Solution (CEO Song Jong-min) announced on the 19th that it signed a mutual investment agreement with KG Steel (CEO Park Seong-hui) at Hoban Park in Seocho-gu, Seoul.
Taihan Cable & Solution will purchase land from KG Steel to build its second subsea cable plant, while KG Steel will acquire Taihan Cable & Solution's convertible bonds (CBs) as the land payment, acting as a financial investor to jointly promote future value enhancement.
The signing ceremony was attended by the CEOs of both companies, Vice Chairman Song Jong-min and President Park Seong-hui, along with group executives Kim Dae-heon, President of Hoban Group's Planning Division, and Kwak Jeong-hyeon, President of KG Group's Management Strategy Division, adding significance to the event. They assessed that the agreement reflects the two groups' commitment to strengthening business cooperation and building a future-oriented collaboration model.
The site that Taihan Cable & Solution is purchasing for its second submarine cable plant is approximately 215,000 square meters (about 65,000 pyeong) located in the Godae district of the Asan National Industrial Complex in Dangjin, South Chungcheong Province. Adjacent to the currently operating submarine cable Plant 1 and close to key production facilities such as the Dangjin Cable Plant and Solution Plant, the company will establish the largest cable production cluster in the country. Through the concentration of production facilities, Taihan will maximize synergy by producing all cable-related products—underground and submarine, power and communication, materials and finished goods—in one region.
KG Steel will receive 110 billion won as the land price in the form of CBs. This decision reflects its confidence in Taihan Cable & Solution's future value and the growth potential of the subsea cable market, as well as its will to further increase corporate value through mutual cooperation.
Taihan Cable & Solution will proceed with the construction of the second submarine cable plant in stages using funds secured through a capital increase in March and the current CB issuance. To meet expanding global demand for submarine cables, it plans to build state-of-the-art facilities, including vertical continuous extrusion (VCV) towers, capable of producing 620kV-class HVDC submarine cables and external network submarine cables.
Through this agreement, both companies will also seek to create synergy in the North American market. Having built up experience and know-how in North America over several decades, the two companies plan to establish a cooperative framework to expand exports to the United States.
Meanwhile, Taihan Cable & Solution, founded in 1941 as Korea's first wire and cable company, has supplied submarine cables for various domestic and international projects since its first supply to Janggun Island in Yeosu in 2009. To respond to growing global demand for submarine cables, the company decided to build a dedicated submarine cable plant, and in May 2024 completed the first phase of Submarine Cable Plant 1, which is now producing submarine cables. It has also secured Korea's only CLV cable-laying vessel for offshore wind, giving it the capability to handle the entire submarine cable value chain—from design, production, transportation, and installation to maintenance.
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