Why it matters: LG Uplus and Kakao Mobility have formed a strategic alliance to develop a joint venture in the electric vehicle (EV) charging industry.
The move, which is expected to be finalized by the end of the year, comes at a critical time as demand for electric vehicles soars in the country with a vision to achieve carbon neutrality by 2050.
The Key Points:
- LG Uplus and Kakao Mobility will leverage their distinct competencies in the joint venture.
- LG Uplus will contribute its nationwide infrastructure construction and operation capabilities, while Kakao Mobility will contribute its expertise in operating a leading Mobility as a Service (MaaS) platform.
- Under the joint investment agreement signed last Friday, each company will contribute KRW 25 billion (US$19.2 million). LG Uplus will hold a slight majority stake and certain management rights.
- The partnership aims to provide drivers with an efficient EV charging experience while introducing new safety and personalization features.
The Big Picture: The joint venture comes amid growing demand for electric vehicles in South Korea.
By the end of 2022, there will be nearly 400,000 electric vehicles on the road, which is expected to reach 4.2 million by 2030, according to the Ministry of Land, Infrastructure and Transport.
As the EV market expands, the focus shifts to developing the charging infrastructure to keep up with the growing demand.
The joint venture between LG Uplus and Kakao Mobility positions both companies to meet this need, with a focus on the residential market where the need for EV charging infrastructure is urgent.