SEOUL — As South Korea’s offshore wind market shifts from planning to actual project deployment, the submarine cable construction sector is experiencing a significant expansion. With the government accelerating the rollout of offshore wind power and large-scale projects taking concrete shape, securing specialized construction capabilities and advanced vessels has emerged as a critical competitive edge.

According to industry sources on October 2, LS Marine Solution secured a submarine cable construction contract worth KRW 156.9 billion last month for the Sinan-Uyi offshore wind project in South Jeolla Province. The contract, signed with Hanwha Ocean, marks the largest single submarine cable installation deal in the company's history.

The Sinan-Uyi venture represents one of the initial major offshore wind initiatives in the Sinan maritime area. According to LS Cable & System, an estimated 8.2 GW capacity of offshore wind projects is slated for development in the Sinan region. Consequently, the execution experience gained from the Sinan-Uyi project is expected to strengthen the company’s position in securing subsequent project bids.

Because submarine cable installation requirements fluctuate depending on local water depth, tidal currents, and seabed topography, hands-on construction expertise and dedicated equipment like cable-laying vessels (CLVs) are essential to successful execution. As large-scale offshore wind farms multiply, the role of specialized vessels capable of transporting and deploying long-distance cables at sea becomes increasingly vital.

LS Marine Solution has already embarked on expanding its submarine cable installation capacity. The company upgraded its existing cable-laying vessel, the GL2030, increasing its cable loading capacity from 4,000 to 7,000 tons and retrofitting it to lay continuous submarine cables exceeding 100 kilometers.

The upgraded GL2030 is scheduled to load cables at the LS Cable & System Donghae plant in October before heading to Langkawi, Malaysia, for deployment. Furthermore, the company plans to introduce a new 13,000-ton High-Voltage Direct Current (HVDC) cable-laying vessel by the first half of 2028.

This surge in order intake is directly translating into financial performance. In the first half of this year, LS Marine Solution posted a consolidated revenue of KRW 148.2 billion and an operating profit of KRW 10.3 billion. Compared to the same period last year, revenue surged by 33 percent and operating profit jumped by 61 percent, marking record highs for first-half figures in both categories. Projects involving submarine cable burial for Taiwan's offshore wind farms and submarine communication cable initiatives across the Asia-Pacific region fueled this robust financial growth.

Order backlogs are also vastly outpacing current revenue scales. By the end of the first half of this year, LS Marine Solution secured an order backlog of approximately KRW 660.0 billion. Simply adding the KRW 156.9 billion Sinan-Uyi contract brings the total to roughly KRW 820.0 billion—more than triple last year's annual revenue of KRW 244.2 billion.

Subsequent offshore wind ventures are also lining up. In May, LS Marine Solution was selected as the preferred bidder for submarine cable construction on the 1GW-class Haeseong offshore wind project in the Sinan waters. The structure entails LS Cable & System supplying the cables while LS Marine Solution handles construction.

Additionally, the company is pursuing a submarine cable installation contract for the Taean offshore wind project, with industry insiders pointing to a possible contract window between late 2026 and early 2027. As major developments like Sinan-Uyi, Haeseong, and Taean take shape sequentially, domestic order volumes for offshore wind construction are projected to rise steadily.

The growth potential of South Korea's offshore wind market is unlocking new frontiers for submarine cable contractors. Offshore wind farms require extensive networks of submarine cables to transmit electricity generated by turbines to offshore substations and onshore grids. As wind farm scales expand and distances from the mainland increase, cable lengths and installation complexity grow correspondingly.

Nevertheless, actual market size and construction volumes may vary depending on project-specific variables such as coastal distance, water depth, and the configuration of internal and external grids. The speed at which government rollout plans translate into actual construction and bidding remains a crucial variable to watch.

Industry experts emphasize that execution experience from massive projects like Sinan-Uyi and ongoing fleet expansions will prove pivotal in future bidding wars. If market orders proceed as planned, offshore wind contracts are projected to establish themselves as a major new revenue pillar, complementing the company's traditional focus on submarine communication cables.