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The world's first factory powered by direct current (DC) distribution has opened in South Korea. DC distribution factories are known to boost energy efficiency by more than 10% when connected to DC-based power sources such as solar power plants or energy storage systems (ESS). The Ministry of Climate, Energy and Environment and the Korea Electric Power Corporation (KEPCO) have decided to intensively foster the related industry, viewing DC as a potential growth engine for the next-generation power industry.
The ministry and KEPCO held the "K-DC Industry Expansion 2026" event on the 2nd at LS Electric's Cheonan business site in South Chungcheong Province. The event was held alongside the completion ceremony for LS Electric's "Cheonan DC Factory." The Cheonan DC Factory is the world's first DC distribution manufacturing facility to extensively apply LS Electric's DC-only core equipment, including semiconductor transformers, semiconductor circuit breakers, and ESS. It is characterized by maximized energy efficiency, as there is no power loss that occurs during the conversion of alternating current (AC) to DC.
Power authorities plan to actively support the DC industry, seeing it as a next-generation growth driver. This includes establishing DC industry standards together with major countries and actively identifying projects such as industrial complexes, data centers, and manufacturing facilities based on DC distribution networks. The government plans to create demand for the DC industry to accelerate industrial development. Lee Ho-hyun, second vice minister of the Ministry of Climate, Energy and Environment, said, "The DC industry has high growth potential," pledging, "We will actively support early market creation, technology development, and institutional improvements for the efficient operation of the national power grid and the advancement of the power industry."
KEPCO also signed a memorandum of understanding on the same day with Korea Institute of Energy Technology, LG Electronics, LS Electric, LS Cable & System, HD Hyundai Electric, and Hyosung Heavy Industries on "establishing a global DC technology-specialized research complex and technology cooperation." The participating companies will move into a joint research complex within Korea Institute of Energy Technology and pursue research and development (R&D) cooperation. Based on this, the plan is to lay the foundation for the DC industry by connecting R&D, demonstration, standardization, certification, and commercialization in the DC distribution field into a single system.
KEPCO President Kim Dong-cheol said, "DC technology has now moved beyond the research stage and is ready for actual market application," adding, "We will take the lead in creating an ecosystem where industry, technology, and institutions develop together." Chae Dae-seok, CEO of LS Electric, said, "The Cheonan DC Factory is a historic milestone in the transition from the AC-centered power paradigm that has continued for more than 100 years to DC," pledging, "Based on our differentiated technology and experience, we will leap forward as the leading company in the global power market in the AI era."
