KOEMA e-NEWSLETTER

Vol.3

COVID-19: We will come through this together

KOEMA News▣ SIEF / PGK 2020 cancelled.In the interest of the health and safety of attendees to The Seoul International Electric Fair 2020, and given the restrictions placed on international travelers, we have taken the decision to cancelled the event. The SIEF 2020 will now be taking place in March 2021 at The COEX, Seoul, Korea.

The largest exhibition in the electricity industry in Korea “Seoul International Electric Fair(SIEF) and Power Generation Korea(PGK)” was scheduled to be held at COEX, Seoul from Oct. 21 to Oct. 23, 2020. We have made all preparation for the SIEF 2020 in order to guarantee a successful event, as in previous years, but due to the Korean Government’s level 2 Emergency Regulations, the social distancing continues. Therefore, we inevitably have no other choice than to postpone the face-to-face exhibition to early next year, to the March.(If finally confirmed, we will notify you through officially notice)Thank you for your understanding and continued support.As just explained, the face-to-face exhibition was postponed to next year, but the side events scheduled during this year's exhibition, will be switched to online platforms and will consequently take place. The plan is to establish and operate an online exhibition platform, specializing in the electrical Industry (Korea Electric Expo). The Seoul International Electric Fair (SIEF) started in 1994, faced the unprecedented situation of canceling the face-to-face event for the first time in 26 years due to the outbreak of an external environment occurrence, called the Covid-19 pandemic. Every year, such well-known companies as LS Electric & Hyosung Heavy Industries and 300 major other companies from Korea and abroad, in the electrical Industry, have been participating. They aim is to introduce Electric power equipment’s and new technologies, reflecting the latest trends, such as eco-friendly and high-efficiency energy products, solution

products that combine ICT and much more. We hope to see you at the SIEF 2021 and ask kindly for your continued support.

If you have any questions regarding the show, please contact the exhibition team of KOEMA.

Contact Person: Ethan Choi / +82-70-4825-1116 / ethan.choi@koema.or.kr

▣ Scheduled Online 1:1 Business Meeting from Oct. 21st to Nov. 6thThe export volume of Korean Electrical Industry showed a steep decline compare to last year same period. To support our member’s export to overseas market, we are holding an online 1:1 Business meeting from Oct. 21 to Nov. 6 between Korean Electrical Manufacturers and Foreign buyers along with KOTRA. Please let us know if you are interested to participate in our online Business meetings. We will guide you how to join the online business meetings and inform you about the agendas and the timing of those upcoming meetings.

Recently, the “electricity industry export information portal” was opened at the NAVER Online platform. The purpose is to provide swiftly various export-related information to member companies and to share information on overseas business activities. We will provide core information for following areas such as for projects biddings and opportunities, new buyers introduction, the latest trade-related news, overseas exhibitions and export promotion activities on our portal.And in addition to that, we have a plan to conduct virtual conferences with major companies or associated organizations to discuss overseas market trends and special trade issues. We are using Zoom for Webinars, etc.

Taking this opportunity, we would like to ask you to participate on such online meetings (Zoom) if you have any requires or need any information in regards to the Korean Electrical Industry.

If you have any questions regarding the Online Business Meeting, please contact the International Trade & affairs Department.Contact Person: Ethan Choi / +82-70-4825-1116 / ethan.choi@koema.or.kr▣ Online Virtual Exhibition - Korea Electric Expo 2020 Due to Korean government's Emergency level 2 of social distancing policy for Covid-19, we cannot hold the SIEF 2020 (Oct. 21-23) at the COEX in this year but we are planning to open the “Korea Electric Expo - SIEF/PGK 2020 by Online virtual Exhibition in order to provide a chance to meet Global buyers and enhance business activities. It will be opened from Oct. 21st to the end of this year. It is expected that approximately 200 companies will take part in this online exhibitions.

Unquestionably you can meet many Korean Electrical Manufacturers through the online exhibition Platform which will present interesting and completive solutions for your projects. Please, join this “tradeKorea” website made by KITA (Korea international Trade Association).If you visit this Online Exhibition, you can receive many benefits as follows;- Priority matching supports for the items you have an interest- Discover your inquiries through B2B online platforms- Communication support such as Interpreter for several foreign language,

writing contracts with Korean Electrical Manufacturers

Please feel free to contact us if you have any question.Contact Person: Ethan Choi / +82-70-4825-1116 / ethan.choi@koema.or.kr

New overseas market development stories ▣ Thai railroad signaling system marketLS ELECTRIC was chosen as the Northeast Railroad Line modernization company for the Thai railroad signaling system market, and has recently succeeded in winning additional projects and is therefore accelerating local business expansion.‘Thai East Railway Signaling Project' with a total project cost of 667 million baht (approximately 25 billion won) ordered by the Thai Railroad Authority with ITD (Italian Thai Development) which is the number one local railway construction company. LS Electric participated in this project in the form of a consortium with ITD and is in charge of designing, manufacturing, and installing the railway signal communication system, winning an order of about KRW 13 billion out of the total project cost of KRW 25 billion.The project is a railway infrastructure development project in Thailand, which extends a total of 169km between the'Yothaka-Khlong leuk' section and completely replaces the old signal systems of 14 stations in order to develop local areas and expand cargo and passenger transport capabilities.LS Electric has already a well proven track record of successfully implemented railway signal communication system in Thailand.LS Electric entered the local market with an order for the first phase project (ST1) of the Thai railway modernization project in 2001, and then successfully completed phase 4 (ST4) in 2007 and phase 5 (ST5) in 2015.In particular, the construction of nine urban railway lines by 2029 is planned to relieve the traffic congestion in Bangkok, in view of that, LS Electric is expected to expand the market even further. In addition, Thailand is building an underground-substation in the Centre of the Bangkok capital.

In regards of those upcoming infrastructure projects it is expected that the advancement of Korean power equipment will increase significantly due to the vast experience, capabilities competitiveness of Korean Manufactures. Please, contact LS Electric if you need More information.Contact Person: Ethan Choi / +82-70-4825-1116 / ethan.choi@koema.or.kr

▣ A large-capacity high-speed synchronous motorHyundai Electric Co. announced that it has successfully developed a large-capacity high-speed synchronous motor, which is a core apparatus of an industrial plant for the first time in Korea. It was delivered to the POSCO Pohang Works. The product is a 27.5MW, 1800rpm large-capacity high-speed synchronous motor that drives a compressor. It is in commercial operation since April of this year, it has been evaluated as excellent by the customer, in terms of performance and quality, and has been operating stably since then. Large-capacity high-speed synchronous motors are key devices operating in various industrial plants. The barriers to market entry are very high as high quality and reliability are required. For this reason, until now, only foreign products have been applied to the industrial plant market. With this development, Hyundai Electric is able to participate in the market of high-capacity high-speed synchronous motors of 20MW or more, which were dominated by overseas manufacturers. Especially, it is widely operated in the entire domestic industrial plant area. It is expected that it will be able to further enhance industrial competitiveness by providing a foothold in the market to supply domestic products in accordance with the demand for replacement of aging foreign synchronous motors. An official from Hyundai Electric said, “By successfully localizing core facilities that were recognized as the exclusive ground of overseas manufacturers, we are able to respond to increasingly

strengthening export regulations in many countries and provide close and quick technical support, compared to overseas manufacturers in the corona era to local customers” It will be an exemplary case for the localization of major products in the national infrastructure.” Based on this achievement, Hyundai Electric actively participates in new projects at home and abroad as well as the replacement project for old synchronous motors in Korea.

▣ To Build 2 Solar Power Plants in Chile

Korea Hydro & Nuclear Power (KHNP) signed a shareholder agreement with Korea Overseas Infrastructure & Urban Development Corp (KIND),S Energy, and Hanyang Electric at COEX in Seoul on Sept. 25 for joint investment in a solar power project in Chile.The consortium is promoting a 6.6MW solar power plant in Guadalupe and a 6.4MW plant in Maria Pinto, both near Santiago, the capital of Chile. KHNP aims to start construction within this year and complete in 2021. KHNP will operate the two plants for 25 years starting 2021. This will mark the first time KHNP makes inroads into South America.In particular, KHNP can expect additional profits from the project by securing carbon emission rights under the Clean Development Mechanism (CDM).KHNP has been promoting this project to tap into the South American renewable energy market. It plans to expand its overseas renewable energy projects through partnerships with small and medium-sized Korean companies.

▣ To Take Smart Grid NationwideNuri Telecom is expected to book sluggish earnings this year, affected by a decline in exports due to the Covid-19 crisis. Nuri Telecom offers advanced metering infrastructure (AMI) solutions covering the collection of electricity/water/gas meter data to utility rate calculation. Expanding its service offerings, the firm now operates as well in the smart grid and microgrid arenas.

AMIs are mainly divided into high-voltage AMIs for industry applications and low-voltage AMIs for households applications. Nuri Telecom boasts a 90% share of the domestic high-voltage AMI market and a 97% share of the low-voltage wireless AMI market. Nuri Telecom Co is expected to book sales of W83.7bn (-43% y-y), as exports are expected to shrink in line with limited overseas operating activity amid the Covid-19 crisis for this year. But, Nuri Telecom Co believes, that maintenance/repair and capacity accumulation orders for projects the firm has conducted in Norway, Ghana, and Vietnam are likely to be realized in 1H 2021.

Nuri Telecom has embarked on new energy businesses along with local governments, based on microgrid and Virtual Power Plant technologies. Supplying power to a specific region independently from an existing grid, microgrids are anticipated to enable efficient power management based on renewable energy sources. In addition, the firm’s Virtual Power Plant business is expected to become a new growth engine from 2021, as it promises to allow for stable power supply based on the integrated operation of distributed resources in cooperation with local governments and industrial complexes.