LG Uplus, the third-largest mobile carrier in South Korea, has partnered with Kakao Mobility, a subsidiary of tech giant Kakao Corp., to establish a joint venture and enter the electric vehicle (EV) charging station business.
The agreement, signed on Friday, involves a joint investment of 25 billion won ($19 million) from each company, with LG Uplus acquiring the managerial rights for the joint venture. LG Uplus will hold a majority stake of 50% + 1 share, while Kakao Mobility retains the remaining shares.
The joint venture is expected to undergo a corporate merger review with the Korea Fair Trade Commission in mid-month. The companies aim to complete the formation process of the joint venture by the end of the year, including establishing the company’s name, corporate identity, strategic direction, and human resources.
LG Uplus brings its extensive experience and capabilities in nationwide infrastructure construction and operation to the partnership, while Kakao Mobility contributes its expertise in operating the leading Mobility as a Service (MaaS) platform.
As LG Uplus expands its business portfolio, it launched the VoltUp EV charging service earlier this year and subsequently acquired HelloPlugin, an electric vehicle charging service from LG HelloVision, to streamline its services. The new venture with Kakao Mobility further aligns with LG Uplus’ strategy to capitalize on the growing EV charging market and enhance its presence in the evolving business landscape.
LG Uplus and Kakao Mobility have expressed confidence in the joint venture’s potential to establish a dominant position in the domestic electric vehicle (EV) charging market.
As of the end of 2022, there were approximately 400,000 electric vehicles on the road in South Korea, and this number is projected to surge to 4.2 million by 2030, according to data from the Ministry of Land, Infrastructure and Transport. The partnership aims to contribute to expanding the country’s EV charging infrastructure, aligning with the government’s ambitious goal of achieving carbon neutrality by 2050.
Hwang Hyun-sik, the CEO of LG U+, stated, “Our initial priority will be to concentrate on the apartment market, which is regarded as the most crucial sector for expanding the EV charging infrastructure. We aim to swiftly establish service coverage and enhance customer loyalty through innovative customer experiences.”
He further added, “By accomplishing this, we will establish ourselves as a leading charging service ecosystem and operating platform, ultimately evolving into a ‘smart energy platform’ that optimizes supply and demand in the future V2G and V2X markets.”
