Hyosung Breaks Ground on HVDC Transformer Plant
Hyosung Heavy Industries has initiated construction of South Korea’s largest HVDC transformer manufacturing plant in Changwon, investing 330 billion won (about $239 million) over the next two years, with project completion targeted for July 2027.
The Changwon factory, spanning 29,600m², marks the largest domestic base for voltage-source converter (VSC) HVDC transformers. Hyosung’s investment plan allocates 254 billion won for the physical facility and the remainder for scaling up production of large-capacity voltage-source converters and R&D. The new plant is designed to deliver a minimum 20% expansion in transformer production capacity by 2028, helping Hyosung meet burgeoning global demand for both AC and DC transmission systems.
Hyosung began HVDC system development in 2017, committing over 100 billion won to R&D, and achieved Korea’s first successful demonstration of a 200MW-class VSC-HVDC technology in 2023 via in-house innovation. The company’s ambitions now center on launching 2 GW-class HVDC transformers, aligning with major domestic programs such as the “West Coast Energy Highway”—a flagship government initiative connecting southwestern renewable hubs with Seoul. This infrastructure is also pivotal to South Korea’s broader carbon-neutrality and RE100 (100% renewable) commitments.
The significance of this project transcends production capacity alone. By reducing dependence on foreign HVDC components, Hyosung’s expansion into 2GW-class solutions positions Korea as a credible disruptor in a sector where supply chains, security, and reliability are increasingly critical. Its technology is already considered essential for next-generation power systems supporting the rapid scaling of AI, high-performance computing, and renewable energy projects, both in Korea and abroad.
Observers note that Hyosung’s strategic persistence in HVDC—driven in part by Chairman Cho Hyun-joon’s vision, even during periods when the global electrical equipment market faced contraction—is now paying off. Despite international skepticism in the 2010s, Hyosung Heavy Industries has not only completed the localization of core HVDC technology, but it is now advancing Korea’s emergence as both a regional and global player in high-capacity power transmission. With the global HVDC market projected to grow at over 8% annually through 2034, reaching around $26.4 billion in value, Hyosung’s completion of the Changwon plant could serve as a bellwether for further shifts in industry leadership and technological self-sufficiency for Korea’s power sector.
