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LS forms electricity infrastructure joint venture with Bhutan's GIDC

Published: 09 May. 2025, 17:05 Updated: 11 May. 2025, 17:30

KIM JU-YEON
[email protected]

LS Vice Chairman Myung Roe-hyun, third from left, and Gelephu Investment and Development Corporation CEO Ujjwal Deep Dahal, fourth from left, pose for a photo after signing an agreement to establish a joint venture that will supply infrastructure for a new city in Gelephu, Bhutan, at LS Yongsan Tower in central Seoul on May 9. [LS]

LS will develop electricity infrastructure for a developing city in Gelephu, Bhutan, through a joint venture created with the South Asian nation's state-owned Gelephu Investment and Development Corporation (GIDC), the Korean manufacturer said Friday.

GIDC, established by Bhutan’s royal charter, is leading the development of the Gelephu Special Administrative Region that spans 2,500 square kilometers (618,000 acres) in Gelephu, a region in southern Bhutan on the border with India.

LS and GIDC signed the agreement to create the joint venture, LS GIDC Pte., at the LS Yongsan Tower in central Seoul on Friday, following three days of discussions on potential collaborations between GIDC and LS Cable & System Electric employees.

Under the agreement, the LS will open a local office in Bhutan and supply essential infrastructure for a sustainable power supply network — such as transformers, energy storage systems and power and communication cables — needed in the early stages of the city’s development.

LS also plans to use Geluphu as a test bed for research and development in smart city technologies. With global IT firms eyeing the region, where electricity costs are relatively low, as a potential site for data center construction, the company said it aims to position itself as a key player in future power supply networks for data centers to create new business opportunities.

The development of the new economic hub was announced in 2023. The city is set to finish construction of an international airport by 2029, in addition to rail lines and a digital reserve bank. Its planning authorities aim to use renewable energy sources such as hydroelectricity to power the city.

“The joint venture with GIDC will serve as an important foundation for establishing a forward-looking partnership between LS and Bhutan,” LS Vice Chairman Myung Roe-hyun said.

“By participating in the early development stages of constructing power grids and urban infrastructure, LS will be well-positioned to pursue various new business opportunities in Bhutan,” Myung added.

BY KIM JU-YEON [[email protected]]