LG Uplus and Kakao Mobility have officially launched their electric vehicle charging joint venture, ‘VoltUp’.
Recognizing the potential for competitiveness and growth in the EV charging business based on its nationwide infrastructure operation expertise with base stations and data centers, LG Uplus ventured into new businesses in 2021. Subsequently, to enhance service expansion and customer convenience, it finalized the establishment of a joint venture with platform operator Kakao Mobility.
Kakao Mobility has developed and operated a comprehensive MaaS (Mobility as a Service) platform that encompasses all aspects of transportation, including taxis, ride-hailing, navigation, parking, and EV charging. Leveraging this capability, it is expected that user convenience in EV charging services will be enhanced, and innovative services can be proposed by linking EV charging infrastructure with various mobility services.
In June of last year, LG Uplus and Kakao Mobility signed a founding contract to combine their strengths and create synergy. In April of this year, they received final approval for the corporate merger from the Fair Trade Commission.
With the final approval of the merger, both companies will contribute 25 billion KRW each to establish a total capital of 50 billion KRW. LG Uplus will hold 50% + 1 share, while Kakao Mobility will own 50% of the shares. As a result, VoltUp will be included as a subsidiary of LG Uplus.
Executives will be appointed from both companies, with LG Uplus appointing the CEO, CFO, and COO, while Kakao Mobility will appoint the CSO and CTO.
The existing EV charging division of LG Uplus will be transferred to the newly established company following administrative procedures such as notifications to relevant agencies. The 10,000 charging stations operated by LG Uplus and the services provided to customers will continue unchanged.
Hyun Joon-yong, who has led the EV charging business division at LG Uplus, has been appointed as the CEO of VoltUp. Since joining the LG Group in 1995 and after working at LG Electronics and LG Telecom, he has been at the forefront of leading the EV charging business since 2023.
In his launch speech alongside employees, CEO Hyun expressed, “We will strive to engrave the successful DNA that both companies have built in their respective fields into the new joint venture and maximize synergy through cooperation,” adding, “We will innovate the user experience as the leading company that best resolves the inconveniences faced by existing EV users.”
He further stated, “It is very meaningful to establish an eco-friendly business, an EV charging company, on World Environment Day,” and emphasized, “We will take the lead in resolving the issue of insufficient EV charging infrastructure so that consumers can confidently purchase electric vehicles.”
VoltUp plans to swiftly secure competitiveness through three differentiated customer values. First, it aims to expand coverage to allow customers to charge instantly at desired locations. In addition to the approximately 10,000 chargers currently operated mainly in apartments, they plan to expand infrastructure into office buildings and commercial facilities. Furthermore, data collected from the expanded coverage will be utilized to provide various customized services.
Second, the joint venture intends to enhance the convenience of platforms and chargers, creating the most user-friendly charging service environment in the country. The application’s UI/UX will be continuously revamped for intuitive understanding, and improvements will be made to ensure that customers do not experience any inconvenience at any stage of the charging process through the development and investment in next-generation chargers.
Finally, beyond the existing charging business, efforts will be made to provide new value, enhance consumer convenience, and save energy, introducing new business models to the market. This includes launching personalized rate plans or offering products where customers’ energy-saving efforts lead to price reductions, thereby securing a differentiated competitive edge that current services do not offer.
Meanwhile, VoltUp was selected as a subsidy charging operator by the Ministry of Environment last March, and as of the end of May, it operates over 10,000 chargers at around 2,000 charging stations nationwide.
Contact: Lee Sang-jin daedusj@autodiary.kr