Dangjin: Taihan Cable and Solution Co., South Korea's second-largest cable company, has unveiled plans to invest 497.2 billion won (US$358 million) in the construction of a new submarine cable plant. This initiative is in response to the increasing global demand for high-voltage direct current (HVDC) cable systems.

According to Yonhap News Agency, the first stage of construction for the No. 2 submarine cable plant will commence later this year in Dangjin, approximately 80 kilometers south of Seoul. The company anticipates that operations will begin in 2027, as part of a larger plan to establish a 1 trillion-won submarine cable facility in the area.

The investment in HVDC systems is driven by their economic advantage over conventional alternating current systems, particularly in the transmission of large power volumes over long distances due to lower energy losses. This first-stage funding is integral to the expansion of Taihan Cable's capabilities, which currently include the No. 1 submarine cable plant, an underground power cable plant, and a cable solutions plant.

The global market for submarine HVDC cables is projected to grow significantly, reaching 28 trillion won by 2029, compared to 6 trillion won in 2022. This growth underscores the strategic importance of Taihan Cable's investment in expanding its production capacity.