LS Vice Chairman Myung Nohyun: "Sufficient Investment Capacity Without Dual Listings... Will Comply with Government Guidelines"

"1.5 Trillion Won in Cash Generated Last Year"
IPO Halted Early This Year, Listing Plan Withdrawn
"Cash to Be Used for New Business Investments and Shareholder Dividends"

Myung Nohyun, Vice Chairman and CEO of LS Corp., stated, "We have sufficient investment capacity even without dual listings," and expressed the company's commitment to fully comply with the government’s guidelines regarding the recent issue of dual listings among affiliates.

After the 57th annual general shareholders’ meeting held on March 26 at LS Yongsan Tower in Yongsan-gu, Seoul, Vice Chairman Myung met with reporters and said, "Even if we are unable to proceed with dual listings, we do not foresee any major problems in terms of investment capital or management. Last year alone, we generated about 1.5 trillion won in cash, so there should be no significant obstacles."

He added, "If the government issues guidelines regarding dual listings, we will faithfully follow them," and emphasized, "For the time being, we have no plans for any initial public offerings (IPOs) of our affiliates."

Myung Nohyun, Vice Chairman of LS, is answering questions from reporters after the shareholders' meeting held on the 26th at LS Yongsan Tower in Yongsan-gu, Seoul. Photo by Yonhap News.

On a consolidated basis, LS Corp. generated approximately 1.5 trillion won in cash last year through earnings before interest, taxes, and amortization (EBITA). Previously, LS halted the IPO of its group affiliate Essex Solutions earlier this year amid controversy over dual listings. The company had originally planned to raise about 500 billion won through the listing to invest in facilities in the United States to respond to the power supercycle. However, the plan was withdrawn following concerns from minority shareholders and the political sector about potential damage to shareholder value. In relation to this, financial authorities are expected to soon prepare a draft of the dual listing guidelines, gather feedback, and revise relevant regulations after consultations.

Vice Chairman Myung said, "LS operates in the capital-intensive equipment industry, requiring large-scale resource inputs, and it takes about 10 years to recoup investments as business operations normalize. Since value is reflected sequentially, the future value is relatively high."

He further noted, "Large-scale investments such as LS Cable's submarine cable plant and LS MnM's battery material business are expected to be completed in about three years. This year, we expect cash generation to exceed 1.5 trillion won, and once the investments are complete, there should be no significant issues financially or in terms of cash flow." He added, "The cash generated thereafter will be used for internal reserves, investments in new businesses, or shareholder dividends."

Regarding the timing and method of listing LS MnM, a subsidiary, he explained, "We will communicate and coordinate closely with JKL Partners in accordance with the investment contract terms, and since the concrete direction will be determined only after the government guidelines are finalized, we will discuss closely with JKL. JKL is also not considering a short-term exit at this time." Currently, JKL Partners, a financial investor, owns a 25% stake in LS MnM.

He also stated that discussions with local governments regarding LS Cable's submarine cable plant investment in Virginia, USA, are proceeding smoothly. He explained that, given the shortage of submarine cable production facilities in the United States, the company is communicating closely with not only the Trump administration but also federal and state governments. In addition, he mentioned that they have secured support totaling about 100 billion won.

In his remarks at the shareholders' meeting, Vice Chairman Myung said, "Based on strong business performance, LS has received high recognition in the stock market in recent years. This year as well, we will continue to improve our business results, and all employees will do their utmost to ensure that our stock value is recognized even higher in the market."

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