Nam Hyun-woo has worked as a staff writer at The Korea Times since 2013, mostly covering business and politics. He currently belongs to the Business Desk where he covers topics such as emerging tech, AI, ICT and Korea's chaebol community. Prior to joining the team, he was the paper's correspondent for the presidential office of Korea during the Yoon Suk Yeol and Moon Jae-in administrations.
Taihan's submarine cable business sails smoothly
Participants pose during the commissioning ceremony of Taihan Cable & Solution's cable laying vessel, the PALOS, in Dangjin, South Chungcheong Province, Wednesday. Courtesy of Taihan Cable & Solution
By Nam Hyun-woo
Cable firm refutes allegations of unfairly obtaining rival’s technology
Taihan Cable & Solution, Korea’s second-largest cable manufacturer, is expecting solid earnings for the second quarter of this year based on the smooth sailing of its submarine cable businesses.
According to market tracker FnGuide, analysts estimate Taihan's operating profit for the second quarter is 35 billion won ($25.26 million), which represents a 45.9 percent increase compared to the previous year. In the first quarter, the company also posted a 63 percent year-on-year level of growth in operating profit by logging 28.8 billion won.
As improvements are expected in the company’s profitability, NICE Investors Service, a domestic ratings agency, awarded an A Stable long-term credit rating last week, noting “the company is focusing on profitable high-voltage cables, particularly expanding the submarine cable business.”
On July 24, Taihan held a commissioning ceremony for its 6,200-ton submarine cable laying vessel (CLV), the PALOS, which is Korea’s only CLV dedicated to offshore wind power and can load up to 4,400 tons of submarine cable at once.
In June, the company completed and commenced operations of the first phase of its submarine cable factory, which has been producing array cables connecting wind turbines for a massive wind farm project in Yeonggwang County, South Jeolla Province.
Taihan said the recent investments helped the company secure construction capabilities and enhance its production competitiveness as a turn-key cable solution provider in submarine cable businesses.
Taihan’s expansion in submarine cables came amid an allegation that a constructor who designed a rival company’s submarine cable plant used the layout of the plant for Taihan’s cable plant.
Taihan said it completed its plant with its technologies and did not steal or utilize any trade secrets from competitors. The company added that if Taihan is found not guilty of the allegations, it will pursue all possible civil and criminal actions.
“We built the factory with our proprietary technology accumulated over decades of cable manufacturing and research into submarine cables,” a Taihan official said.
Taihan noted it has been conducting research and development for submarine cables since 2009 and first established manufacturing facilities at its existing cable plant in 2016. The company also cited its track record of supplying submarine cables for a domestic wind power project in 2017.
“All partner companies were selected fairly through a competitive bidding process, and excessive barrier-setting practices by monopolistic companies should be stopped for the progress of the domestic submarine cable industry,” the official said.
“We will continue investing to gain presence in the expanding submarine cable market, enhance the domestic supply chain and boost Korea’s national competitiveness in the industry.”