To seize the “blue ocean” electric vehicle charging market, LG Uplus has partnered with Kakao Mobility.
LG Uplus has officially entered the electric vehicle charging sector by signing a joint investment contract with Kakao Mobility.
The contract signing ceremony held on the 30th at the Kakao Mobility headquarters in Pangyo, Gyeonggi-do, was attended by key officials, including LG Uplus CEO Hwang Hyun-sik, Vice President Hyun Jun-yong of the EV Charging Business Division, CSO Kwon Yong-hyun, Kakao Mobility CEO Ryu Geun-seon, Senior Vice President Ahn Kyu-jin, and Senior Vice President Lee Chang-min of the Finance Division.
The two companies plan to apply for a corporate merger review with the Fair Trade Commission in July to establish a joint venture. After that, they will finalize the company establishment process by setting a name and brand, establishing business strategies and directions, and securing personnel within the year. LG Uplus will own 50% + 1 share, while Kakao Mobility will hold 50%.
As internal combustion engines rapidly transition to electrification and digitalization, the two companies aim to strengthen the competitiveness of electric vehicle charging services in an era described as the “Warring States Period,” where no clear market leader has emerged.
In recent years, the government’s support policies and advancements in industrial technology have significantly increased the number of electric vehicle users. According to the Ministry of Land, Infrastructure and Transport, 164,000 new electric vehicles were registered in 2022 alone, bringing the total number of registered electric vehicles in the country to approximately 390,000 by the end of the year, projected to exceed 4.2 million by the end of 2030.
Consequently, the electric vehicle charging market has emerged as a “blue ocean” and is growing rapidly. The Ministry of Environment has set a goal of supplying over 1.23 million chargers by 2030. Additionally, major corporations are competitively entering the market, identifying electric vehicle charging as a future revenue stream by acquiring specialized charging companies or implementing their own services.
In contrast, the pace of expanding electric vehicle charging infrastructure is failing to keep up with the growth of the electric vehicle market, becoming a significant barrier to the widespread adoption of electric vehicles. Furthermore, issues with inefficient operations and fragmented charging infrastructure, along with inadequate management of existing charging stations, have been pointed out as major inconveniences for users.
LG Uplus and Kakao Mobility aim to expand the insufficient electric vehicle charging infrastructure by harnessing their combined strengths to provide a “convenient charging experience anytime, anywhere” and deliver new values that didn’t exist before, such as safety and personalization, taking the lead in achieving the government’s 2050 carbon neutrality goal.
Previously, the two companies have been strengthening their human and technical capabilities with the goal of expanding electric vehicle charging services.
Earlier this year, LG Uplus launched the electric vehicle charging service “VoltUp” and acquired the electric vehicle charging service “Hello Plugin” from LG HelloVision, consolidating their services and combining strengths.
Kakao Mobility has been enhancing accessibility and convenience since 2021 by introducing electric vehicle charging services via the Kakao Navi app, continuously expanding smart features such as easy payments, locating charging stations, real-time notifications of charging history, and displaying the status of chargers.
With the establishment of this joint venture, the extensive nationwide infrastructure management and operational capabilities of LG Uplus in providing uninterrupted communication services, along with Kakao Mobility’s expertise in managing leading domestic MaaS (Mobility as a Service) platforms like Kakao T and Kakao Navi, are expected to create significant synergies in managing charging infrastructure and providing convenience services linked to platforms.
LG Uplus CEO Hwang Hyun-sik stated, “We will focus on the multi-family housing market, which is identified as the most urgent area for expanding electric vehicle charging infrastructure, ensuring rapid service coverage and increasing customer loyalty through innovations in customer experience. Through this, we aim to proactively secure the charging service ecosystem and operational platform, evolving into a ‘smart energy platform’ that optimizes supply and demand in the future V2G/V2X market.”
Kakao Mobility CEO Ryu Geun-seon remarked, “Through this joint venture, we aim to solve various issues that have been encountered when using existing chargers through platform technology. In the long term, we wish to uncover new business models based on accumulated user data and evolve into a leading player in the upcoming electric vehicle transition era.”
Lee Sang-jin daedusj@autodiary.kr