KT Submarine Signs 9.2 Billion KRW Cable Laying Contract with Japan's NEC

Project Connecting Singapore and Indonesia
Current Orders Amount to About 90% of Last Year's Sales

KT Submarine (KTS) announced on the 27th that it has signed a submarine optical cable laying contract worth approximately 9.2 billion KRW with Japan's NEC.

The project connects Singapore and Indonesia over approximately 360 km, with construction scheduled from June to September. This is part of a larger project where a consortium (ECHO), formed by US companies Meta and Google to meet internet and cloud demand, is installing submarine optical cables over about 20,000 km from the US to Singapore.

KT Submarine's submarine cable laying ship 'Segyero'.
[Photo by KT Submarine]

With big tech companies such as MS, Google, Amazon, and Meta expected to own more than 30 long-distance submarine optical cables by 2024, the related market is rapidly growing.

Lee Seung-yong, CEO of KTS, said, "Business opportunities are increasing due to aggressive investments by big tech companies and LS Cable & System's participation in large-scale projects," adding, "We are also considering securing additional cables."

Meanwhile, KTS recorded an operating profit of 1.5 billion KRW in the first quarter of this year, turning profitable. Orders totaled 38.4 billion KRW, reaching about 90% of last year's sales as of April. The company expects operating profit to turn positive this year through asset efficiency improvements and business expansion.

This content was produced with the assistance of AI translation services.