Summary
– LG Uplus and Kakao Mobility sign an EV charger joint venture agreement in June 2023
– Kakao Mobility Corp. and LG Uplus Corp. invest 25 billion won each in the 50:50 JV
– The joint venture aims to compete in the EV charging station market and spur innovation
– LG Uplus’ existing EV charging service operator, with a 1.1% market share, will be taken over by the JV
– GS and SK groups lead the market of EV charging services as first and fourth player, with other groups expected to enter the market
Article
Kakao Mobility Corp., South Korea’s largest taxi-hailing platform, has entered into the electric vehicle charging market through a joint venture with LG Uplus Corp., a mobile and broadband service provider. The Fair Trade Commission (FTC) approved the 50:50 JV, with each company investing 25 billion won. The venture aims to enhance competition in the EV charging station market and address the needs of electric vehicle users in the country. The JV will take over LG Uplus’ existing EV charging service operator, which held a modest 1.1% market share as of July last year.
South Korea’s EV charging service market is currently dominated by conglomerates GS and SK groups, ranked first and fourth, respectively. With LG Uplus and Kakao Mobility entering the market, competition is expected to intensify. Other major players like Naver Corp., the country’s largest online platform, are also eyeing opportunities in the EV charging sector. The FTC believes that the joint venture will not only increase competition in the market but also lead to innovation in pricing and services. Last October, LG Uplus unveiled prototypes of its first EV chargers, indicating its commitment to advancing in the electric vehicle industry.
The joint venture with LG Uplus marks Kakao Mobility’s strategic move to expand its presence beyond taxi-hailing services and into the growing EV charging market. By leveraging LG Uplus’ existing EV charging infrastructure, the partnership aims to offer a more comprehensive and efficient charging solution for electric vehicle users. With the rising adoption of electric vehicles in South Korea, the demand for reliable and accessible charging stations is on the rise, presenting a significant growth opportunity for companies entering the EV charging sector.
The collaboration between Kakao Mobility and LG Uplus is poised to bring about positive changes in the electric vehicle charging market, benefiting both companies and consumers. As the JV takes over LG Uplus’ EV charging operations, it is expected to enhance the quality and accessibility of charging services, making it more convenient for electric vehicle users to charge their vehicles. With increasing government support for electric vehicle infrastructure development, the timing of this joint venture aligns with the broader national strategy to promote sustainable transportation options.
The approval of the joint venture by the FTC signifies a positive step towards fostering competition and innovation in the EV charging sector in South Korea. By combining the strengths of Kakao Mobility’s expertise in mobility services and LG Uplus’ infrastructure capabilities, the JV is well-positioned to cater to the evolving needs of the electric vehicle market. As more players enter the EV charging space, the market is likely to witness advancements in technology, pricing strategies, and customer experience, ultimately driving further growth and development in the electric vehicle ecosystem. The joint venture marks a significant milestone for both companies and reflects their commitment to sustainability and innovation in the transportation industry.
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