Asia | November 13, 2025
Record orders, easing tariffs, and HVDC expansion fuel a long-term industry boom.
Image for illustrative purposes
South Korea, Seoul: South Korea’s power equipment manufacturers are rapidly expanding production and investing in next-generation technologies as demand from the United States surges to record levels. Companies including HD Hyundai Electric, LS ELECTRIC, and Hyosung Heavy Industries have secured contracts stretching up to six years ahead, with some orders already booked through 2031.
The boom comes as US utilities race to replace ageing power infrastructure and meet the growing electricity needs of artificial intelligence (AI) data centres. Korean firms are benefiting from limited local manufacturing capacity in the US and a global shortage of high-voltage power equipment.
“The situation has shifted to a supplier’s market,” said one industry official. “Even with tariffs, clients are willing to pay more because products are in short supply.” Hyundai Electric, for instance, saw its tariff burden halved in the third quarter to $6.8 M (₩10 B), down from $13.6 M (₩20 M) in the previous quarter.
To meet long-term demand, Korean manufacturers are investing heavily in HVDC and UHV technologies. Hyosung Heavy Industries recently began construction of a $225 M (₩330 B) HVDC transformer plant in Changwon, while LS ELECTRIC is expanding its Busan facility to serve the US and European transmission and renewable markets. Hyundai Electric also plans to expand its Alabama plant by 2027 to boost 765 kV transformer production.
Despite concerns about potential oversupply, analysts say the market remains robust. “Strong demand means backlogs will continue to grow,” said Lee Dong-heon of Shinhan Investment & Securities, adding that it may take years before supply catches up.
Source: Chosun Biz
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