💼 LS, DC Power Grid Blueprint Meets a Stock Price That Tells a Different Story - 2026.11.02

Hey, it’s Peanut. Let’s run the numbers together first again today 🥜 The story began when Koo Ja-kyun, chairman of LS ELECTRIC, put forward an intelligent DC-based power grid as a solution to AI-driven electricity demand. The stock closed up 6.42% at ₩215,500, after having slipped as low as ₩198,900 in the previous trading session, so the chart was quite volatile.

A New Blueprint: Direct Current (DC)

In his keynote address on the 2nd at the '2026 International Conference on Electricity Distribution (CIRED) Workshop' held at JW Marriott Dongdaemun Square in Seoul, Chairman Koo proposed a next-generation intelligent DC power grid as a solution to the sharp rise in electricity demand driven by the spread of AI data centers ^[1]. Another outlet also reported on the same idea as a blueprint for the power grid of the future ^[4]. What’s interesting is LS ELECTRIC Strategy CTO Seo Jang-cheol’s explanation that large-scale power grids, traditionally centered on alternating current, need to change as distributed power sources such as solar energy become more common ^[5]. It’s a bit like having a highway designed with lanes running in one direction, then needing to redesign them when cars start entering from every direction 🛣️

North American Expansion and Tariff Risks

Whether this blueprint translates into actual revenue will depend on North America. BizWatch also covered LS ELECTRIC’s accelerated push into the North American market that day ^[3]. But will it really work? A blueprint could end with an announcement, so it needs to be validated by orders and execution together.

There’s another variable. In its transformer anti-dumping review, the U.S. Department of Commerce preliminarily set the margins for HD Hyundai Electric and Iljin Electric at 0%, while LS ELECTRIC and Hyosung Heavy Industries, which were not individually reviewed, were preliminarily set to retain their existing 4.32% dumping margin ^[2]. There was also word that officials considered applying the current rate to the other companies because the individually reviewed companies all had margins of 0% ^[2]. Competitors appear to be moving toward relief from the tariff burden, while LS ELECTRIC is still at the preliminary ruling stage, so we should be cautious in interpreting the outcome.

What to Watch at Holding Company LS

For holding company LS, the key question is how much its subsidiary LS ELECTRIC’s North American orders and margins will translate into value for the parent. The blueprint announcement does not automatically translate into grounds for a share-price rise alongside earnings. I think we first need to distinguish whether the recent rebound reflects a reassessment of value or short-term optimism.

A Bearish Scenario, Too

Even in a bullish mood, it’s worth keeping a bearish case on the table. The stock rebounded immediately after falling 6.18% on October 30, showing high volatility. And if expectations for the subsidiary are already priced in, the possibility of a value trap can’t be ruled out 📉 Whether the preliminary tariff ruling changes when finalized is another point to watch.

Peanut’s view is that any assessment of holding company LS should remain conditional until this blueprint is proven through orders and execution. There’s one question to ask now: will talk of a DC power grid lead to actual contracts and margins? We’ll need to look for the answer in follow-up announcements.

📰 Reference News (5)

1

[CEO Unfiltered] LS ELECTRIC Chairman Koo Ja-kyun: “An Intelligent DC Power Grid Is the Solution to AI Power Demand”

네이버뉴스 · 2026.11.02

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2

HD Hyundai Electric and Iljin Electric Get '0% Margin' in U.S. Transformer Anti-Dumping Review…Tariff Burden Eases

네이버뉴스 · 2026.11.01

📰 View original

4

Chairman Koo: “DC Is the Solution to AI Power Demand”…Blueprint for the Future Power Grid Unveiled

네이버뉴스 · 2026.11.02

📰 View original

5

Energy Is the Battleground in the AI and Robotics Era…Saemangeum as an Innovation Platform for Advanced Industries

네이버뉴스 · 2026.10.31

📰 View original