Kepco targets South Korean inverter competitiveness with new tech subsidiary

Korea Electric Power Corp. (Kepco) has launched a wholly owned technology-commercialization subsidiary, Kepco Technology Holdings, according to the South Korean Ministry of Climate, Energy and Environment said.

Kepco contributed an initial KRW 20 billion ($14.4 million) in capital and plans to increase cumulative funding to KRW 100 billion over five years through annual KRW 20 billion contributions.

The subsidiary is intended to connect more than 8,000 Kepco patents and other public-sector energy research, including from the Korea Institute of Energy Technology (KENTECH), with startups and energy-technology companies. Its planned activities include technology transfer, direct equity investment, joint-venture formation, and the use of Kepco’s infrastructure and operational data for demonstration projects, followed by a scale-up fund for companies as they mature.

Kim Sung-hwan, minister of climate, energy and environment, said the company should serve as a growth platform connecting publicly accumulated technologies with the market and turning corporate ideas into new industries. He added that it could help foster Korean energy “unicorns” and strengthen the country’s position in global energy and green industries.

Three cooperation agreements were signed at the launch. One agreement involved seven domestic solar-inverter manufacturers identified by the ministry as OCI Power, Dass Tech, Dongyang E&P, Ecos, DIK, Geumbi Electronics, and INO ELECTRIC, aimed at strengthening South Korea’s domestic inverter manufacturing base as renewable-energy deployment expands. The agreement centers on cooperation, technology access, and demonstration opportunities rather than confirmed export subsidies, local-content requirements, or a quantified market-share target.

A second agreement, with equipment manufacturers LS Electric, Hyosung Heavy Industries, and HD Hyundai Electric, aims to establish a direct-current (DC) industrial hub in Naju, where Kepco is headquartered, covering research and development, investment, demonstration, and commercialization. The agreement remains an early-stage cooperation framework; public reporting does not yet specify project capacity, investment amounts, or construction timelines.

A third agreement established an investment alliance among Kepco, Kepco Technology Holdings, and 10 investment institutions, including the Korea Development Bank and IBK Industrial Bank of Korea, intended to jointly identify promising energy technologies and companies for private investment.

The deals follow a broader push to strengthen South Korea’s domestic energy-technology capacity. Inverter manufacturers formed an industry association in late 2025 to coordinate production and address cybersecurity concerns over imported equipment, while Kepco has separately backed large-scale battery storage and grid projects, including a 978 MW/889 MWh grid-stabilization system completed in 2024 involving several of the same manufacturers now part of the DC-hub agreement.