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LG Uplus to acquire subsidiary's EV charging service business division

By Park Sae-jin Posted : January 13, 2023, 13:33 Updated : January 13, 2023, 13:33

[Gettyimages Bank]

SEOUL -- LG Uplus, a major mobile carrier in South Korea, will make a foray into the country's rapidly growing electric vehicle charging service industry by acquiring the EV charging business division of LG HelloVision, the cable television network wing of the mobile carrier.
 
South Korea with more than 25 million registered vehicles has 340,700 EVs registered as of the third quarter of 2022. According to the trade ministry, the domestic sales of EVs are increasing by some 80 percent every year. The government is providing hefty subsidies to promote sales of EVs. Electric-powered commercial vehicles including trucks and buses are widely adopted.
 
Along with the thriving EV market, EV charging service market is also growing at an accelerated speed. There are about 170,000 private and public EV chargers across the country but charging facilities at public car parks, expressway service areas, and multi-purpose facilities are limited. It is common to see EV drivers waiting in line to charge their cars at a charging station in highway service areas.  
 
LG HelloVision said through a conference call on January 12 that "LGU+ has acquired our company's tangible and intangible assets related to EV charging businesses." The business transfer fee is 3.7 billion won ($2.99 million). The cable TV network company currently operates some 13,000 EV chargers across the country. LGU+ is preparing to launch an integrated EV charging platform in the first half of 2023.
 
Currently, major South Korean companies are trying to gain a strong foothold in the EV charging service market. Oil refiner GS Caltex revealed its plan in 2020 to turn its gas stations into a one-stop EV charging and parking environment. Hyundai Motor commercialized E-pit charging stations at selected expressway service areas. Hyundai's EV charging space offers ultra-fast charging service for some vehicles, enabling EVs to fully charge their batteries in just 40 minutes.
 
According to IBK Securities, South Korea's EV charging service market standing at about 300 billion won in 2022 is predicted to reach some 2.5 trillion won in 2030 with more than 1.8 million chargers.
 

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