🔗 LS: Examining Power Grid Technology Cooperation Alongside the LS Cable Strike Variable - 2026.09.15

Hi, it’s Dotori. The key point for LS today is that power grid technology cooperation is moving forward, while labor-management issues have emerged at LS Cable. One side is developing distribution technology in response to the expansion of renewable energy, while the other has entered a strike phase for the first time in 37 years. Even within the same group, the gears appear to be turning at different speeds.

⚙️ Let’s start with the big picture: distribution grid technology cooperation

LS Electric and Korea Electric Power Corporation have agreed to jointly develop distribution-grid-forming technology. It is a technology cooperation initiative linked to stabilizing distribution systems amid the expansion of renewable energy ^[1]. Grid-forming was presented in this material as a next-generation technology for the distribution sector, and it is connected to LS Electric’s power equipment and power infrastructure businesses.

What matters here is that this is cooperation addressing the operational stability of the power grid, rather than simply a product introduction. As the share of renewable energy grows, the role of technologies that can manage the power grid stably may expand. This news shows that LS Electric is participating in development connected to technological competitiveness at the distribution stage. However, news of joint development does not immediately mean business results or financial outcomes. How the technology will actually be applied to power grids and whether it will lead to a business opportunity remain separate variables.

🔗 Which part of the value chain will move first?

From the perspective of the broader industry, the order of differentiated beneficiaries can be summarized as follows. First priority is distribution power equipment and automation, with LS Electric directly involved in this joint development. Second priority is wires and cables connected to power grid expansion, where LS Cable’s wire business fits. Third priority is materials and components, an area connected farther downstream in the value chain as power infrastructure investment broadens.

This order is an interpretation based on the business links mentioned in this news, not a beneficiary outlook presented by the companies. Dotori compares the power grid to a relay race. Generation and distribution, power equipment and cables must connect in sequence for the overall flow to remain active, and it is difficult to determine the final outcome based only on the speed of one segment.

🏭 LS Cable: A phase where the order backlog and strike are visible at the same time

The LS Cable union is reportedly planning a one-hour partial strike on the 16th at major domestic sites including Gumi, Indong, and Donghae, marking its first strike in 37 years since the union was established ^[2]. This is why the potential impact on production and business operations is drawing attention.

At the same time, LS Cable’s order backlog at the end of the first half of this year was presented at a record-high level, while the order backlog of the LS Group, including LS Cable and LS Electric, was also cited as approximately 20,000,000,000,000 KRW ^[3]. The question that follows is quite clear. Can the pace of securing orders and the ability to execute them on-site move in the same direction? The fact that the order backlog is large and whether there will be short-term production disruptions are issues at different levels, so they should not be blended into a single conclusion.

📚 Two axes that remain when looking at LS

Structurally, two axes are present for LS in this development. The first is the expansion of power grid technology demonstrated by LS Electric’s joint development of distribution-grid-forming technology, and the second is the operational variable raised by LS Cable’s strike phase. The former is an indicator for confirming long-term value-chain connectivity, while the latter is an issue requiring confirmation of how much the partial strike on the 16th will actually affect production and business progress.

Ultimately, the key is the process by which technology cooperation leads to actual application and business, as well as the process of how smoothly the large order backlog can be handled on-site. Whether the specific progress of grid-forming development and labor-management discussions at LS Cable remain separate gears or mesh into a single flow will be the next issue to watch.

📰 Reference News (3)

1

LS Electric and KEPCO to Jointly Develop Distribution-Grid-Forming Technology - Energy Economy Newspaper

에너지경제신문 · 2026.09.15

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2

“We Want More Too”… What Semiconductors Set in Motion

네이버뉴스 · 2026.09.15

📰 View original