KT Submarine Co. (KTS), a South Korean undersea cable construction company, said on Tuesday that it signed a contract with LS Cable & System Ltd. to join a project to build an undersea cable linking Jeju Island and Wando County.
The project, which spans about 90 kilometers (56 miles), is the largest of its kind in South Korea. KT Submarine will lay cables undersea as part of the project.
The company said the agreement will help it expand its undersea communications cable business to more profitable power cables. It also acquired the only power cable-laying ship in South Korea earlier this month to boost its business capacity.
KT Submarine expects to benefit from synergies with LS Cable, which owns 16.2% of its shares and can become its largest shareholder if it exercises call options between April and July of this year.
“We will actively participate in offshore wind farm construction and undersea connection projects for island areas through cooperation with LS Cable,” said Lee Seung-yong, the president and CEO of KT Submarine.
Write to Han-Gyeol Seon at always@hankyung.com
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