LG-Kakao EV charger JV LG Uplus VoltUp sets sail
LG Uplus Corp., South Korea’s third-largest mobile carrier, and the country’s largest taxi-hailing platform Kakao Mobility Corp. officially launched their electric vehicle charging system joint venture on Wednesday, heralding fiercer competition in the country’s fragmented EV charging market in its early stages.
The joint venture, dubbed LG Uplus VoltUp, will be led by Chief Executive Officer Hyun Jun-yong, former vice president of EV Charging Business at LG Uplus.
While LG Uplus will focus on the management and operation of the JV, Kakao Mobility will be in charge of strategy and technology development with its know-how in building and operating a Mobility-as-a-Service platform and related infrastructure, according to Kakao Mobility.
Approved by the Fair Trade Commission (FTC) in April, LG Uplus will hold 50% of the JV plus one share, while Kakao Mobility will control 50%. Each company has pledged to chip in 25 billion won to set up the JV.
The JV will be placed under LG Uplus as a subsidiary and take over LG Uplus’ existing charging service operation, which controled a mere 1.1% share in the Korean EV charging market as of July last year.
A GAME CHANGER
The new player in the Korean EV charging market will continue operating about 10,000 chargers already installed and operated by LG Uplus in apartment buildings in Korea, while seeking to build more EV charging infrastructure for commercial buildings, the company said.
It plans to offer tailored charging prices for different customers to differentiate its service from competitors.
The JV hopes to lead Korea’s EV charging market, which is in its fledgling stages without dominant players, with new services that meet users’ demands, Hyun said in a statement.
The Korean EV charging market was vied by more than 100 companies operating 250,000 charger units together across the country as of September last year, according to Korea’s Ministry of Environment.
Korean major conglomerates GS and SK groups are two notable big players in the country’s EV charging market, while Naver Corp., the country’s largest online portal operator, is also seeking to crack the market.
LG Uplus first entered the EV charging market in 2021 with its expertise in operating nationwide mobile phone base stations and data centers.
In June last year, it decided to team up with Kakao Mobility to expand its business and improve its charging service.
Three months later, it unveiled a ceiling-type multi-charging system jointly developed with the construction arm of Hanwha Corp. and two local startups – EV charger manufacturer GENIS Korea and EV charger designer Zipool Engineering.
LG Uplus aims to join the ranks of the top three Korean EV charger makers by 2026.
Write to Kang-Ho Jang at callme@hankyung.com
Sookyung Seo edited this article.
