LS Challenges Record High Performance for 2 Consecutive Years... Establishing '3rd Generation Owner Management'

Koo Ja-eun Achieves Record Performance in First Year as Group Chairman
Koo Bon-gyu Leads $3 Trillion Orders in North America and Europe
Koo Dong-hwi Drives Digital Transformation (DX) in Power Business

LS Group, which achieved its highest performance last year, is challenging new records again this year. Both its existing core business (power) and new business (electric vehicles) are performing well.

According to securities industry earnings estimates posted on the financial information company FnGuide on the 12th, LS Corporation's first-quarter sales are expected to be KRW 6.1087 trillion, with an operating profit of KRW 202.5 billion. These figures represent increases of 64.5% and 20.8%, respectively, compared to the same period last year. Last year's first quarter also saw sales rise 27.7% and operating profit 26.8% compared to the first quarter of 2021, but this year's growth is expected to be even greater. LS Group announced plans to disclose its first-quarter report on the afternoon of the 15th.

Although the first-quarter earnings have not yet been announced, interest is growing in the group's overall performance this year and its future momentum (growth drivers). The group is highly regarded for meticulously building the electric vehicle value chain at the group level. Major affiliates are standing out in the 'motor (LS Cable & System) - power control (LS Electric) - battery materials (LS MnM, formerly LS Nikko Copper) - charging (LS Corporation, E1)' businesses.

Koo Ja-eun, Chairman of LS Group, is visiting the L&K factory in Germany and receiving an explanation about the core product, oxygen-free copper wire rod, from a sales staff member.
[Photo by LS]

LS Cable & System established its subsidiary LS EVC in October last year. LS EVC supplies electric vehicle key component stator wires to Hyundai Motor's Ioniq 5 and Kia's EV6. The stator wire is a copper wire wrapped around the electric vehicle motor that converts electrical energy flowing through the motor into mechanical energy.

LS Electric's subsidiary LS Mobility Solutions' EV relay components are used in electric vehicle lines of General Motors (GM), Stellantis, and Ford in the United States. The EV relay is a switch that supplies and cuts off electric current from the electric vehicle battery to various components. Construction of a dedicated EV relay factory in Mexico began in July last year and is scheduled to be completed by the end of this year, aiming to expand North American operations.

LS MnM's investee company Toricom recently completed a production plant for nickel sulfate used in secondary batteries with an annual capacity of 5,000 tons. Chairman Koo Ja-eun attended the plant completion ceremony and said, "LS Group will be able to create synergy across materials, components, and charging solutions in the electric vehicle sector."

LS E-Link, a joint venture established by LS Corporation and E1, is currently promoting a rapid charging station business for large electric vehicles such as electric buses, taxis, and trucks after a KRW 50 billion paid-in capital increase in February.

In the existing cable business, achievements include the completion of Asia's largest dedicated high-voltage direct current (HVDC) submarine cable factory and winning a KRW 2 trillion HVDC cable order in the Netherlands. These results are expected to be reflected in the second-quarter earnings. An LS affiliate official said, "We expect good performance this year by minimizing the impact of external factors such as economic downturns while continuing business."

Koo Bon-gyu, CEO of LS Cable & System. [Photo by LS Cable & System]

Another positive factor for the group is the smooth performance of CEO roles by the third-generation owners, including Chairman Koo Ja-eun. This year, LS Group promoted Koo Bon-gyu, Vice President of LS Cable & System, to President, and Koo Dong-hwi, Executive Director of E1, to Vice President of LS Electric.

Koo Bon-gyu, President of LS Cable & System, is the eldest son of Koo Ja-yeop, Chairman of LS Cable & System. He participates in North American and European order acquisition. Since serving as CEO Vice President last year, he has been recognized within the group for his strong drive. After returning to LS Cable & System last year following stints at LS Electric and LS Mtron, he secured approximately KRW 3 trillion worth of orders in the offshore wind power cable market in North America and Europe. He also has experience working at LS Cable & System's U.S. branch from 2007 to 2010.

Kudonghui, Vice President and CEO of LS Electric (left), and Dominik Wee, Vice President of Microsoft’s Manufacturing and Mobility Division, signed an MOU (Memorandum of Understanding) for "joint development and technology verification of smart factory and energy-based new business" at the Hannover Industrial Fair in Germany on the 19th of last month (local time) and took a commemorative photo.
[Photo by Yonhap News]

Koo Dong-hwi, Vice President, is the eldest son of Koo Ja-yeol, Chairman of LS Group's Board and Chairman of the Korea International Trade Association. He assists his uncle, Koo Ja-gyun, CEO and Chairman of LS Electric. He is involved in digital transformation (DX) of the power automation business and future businesses such as hydrogen. On the 19th of last month (local time), he attended the signing ceremony of a memorandum of understanding (MOU) for 'joint development and technology verification of smart factory and energy-based new businesses' with Microsoft at the Hannover Messe in Germany.

Park Joo-geun, CEO of the corporate analysis research institute Leaders Index, said, "Vice President Koo Dong-hwi will focus on advancing the existing power business rather than striving to secure new business orders such as electric vehicles for the time being."

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