K-Cable Enters Supercycle: LS Cable & Daehan Wire Combined Backlog Tops ₩10 Trillion

A triple tailwind of AI data centers, subsea cables, and surging copper prices is driving structural growth through 2040.

Daniel Kim·April 28, 2026·6 min read

AI Summary

South Korea's cable industry has entered a supercycle, with LS Cable and Daehan Wire's combined order backlog surpassing ₩10 trillion
Three structural tailwinds are driving momentum: surging AI data center power demand, a 29.5% CAGR subsea cable market in Asia, and a 30% spike in LME copper prices boosting average selling prices
Key risks include copper price volatility, project revenue recognition delays, and intensifying competition from Chinese manufacturers

South Korea's cable and wire industry is widely regarded as having entered a supercycle, powered by three converging structural drivers: AI infrastructure expansion, the renewable energy transition, and aging power grid replacement.

LS Cable & System, the sector's top player, posted record-high revenue of ₩7.5882 trillion and operating profit of ₩279.8 billion in 2025. Its order backlog reached an all-time high of ₩7.63 trillion. Second-ranked Daehan Wire & Cable reported a backlog of ₩3.6633 trillion — 3.5 times its 2020 level. Combined, the two companies' backlogs have surpassed ₩10 trillion, with some forecasts projecting combined revenue of up to ₩12 trillion in 2026.

AI Data Centers Directly Driving Ultra-High-Voltage Cable Demand

The first growth driver is power demand from AI data centers. As electricity consumption at individual AI data center facilities surges, so does demand for extra-high-voltage (EHV) cables — the conduits linking data centers to the grid and grids to substations. These cables represent a core high-margin product category for wire and cable manufacturers.

The global wire and cable market is projected to grow at a CAGR of 5.5%, from $219.2 billion in 2025 to $374.5 billion in 2035. The power grid infrastructure boom, which originated in the Middle East, is now expanding into North America, Europe, and Southeast Asia.

Subsea Cable Market Forecast to Grow 30% Annually Through 2032

The second driver is subsea cable demand tied to offshore wind expansion. The offshore wind cable market in Asia (excluding China) is projected to grow at a CAGR of 29.5%, from approximately ₩700 billion in 2025 to around ₩4.4 trillion by 2032. Korean manufacturers collectively hold approximately 73% of this market.

LS Cable secured a subsea cable contract worth approximately ₩60 billion in Malaysia in early 2026. Daehan Wire & Cable has completed certification for its 525kV HVDC cables and has committed to investing in a second production facility for 640kV-class subsea cables.

30% Copper Price Surge Lifts Average Selling Prices

The third driver is the rise in copper prices, the primary raw material for cable manufacturing. LME copper spot prices have surged more than 30% over the past year, pushing up the average selling prices (ASPs) of cable products. Because cable manufacturers pass copper price fluctuations through to product pricing, rising copper prices translate directly into higher revenue.

However, this dynamic cuts both ways. A sharp drop in copper prices would conversely pressure ASPs and weigh on revenue. The lag between large-scale overseas infrastructure contract wins and actual revenue recognition also poses a risk. Additionally, aggressive low-cost competition from Chinese manufacturers and U.S. tariff policy could complicate efforts to expand into North American export markets.

Some industry observers have expressed optimism that the current structural boom could extend as far as 2040. South Korea's domestic electrical industry output for 2026 is projected at ₩47.1 trillion, representing a 1.5% year-over-year increase.