AI Boom Drives Korea's Power Equipment Supercycle

The combined order backlog of Korea's three major power equipment makers — HD Hyundai Electric, Hyosung Heavy Industries and LS Electric — surged from 5.7 trillion won at the end of 2021 to about 43 trillion won by the end of June 2026. The surge is driven by a US transformer shortage, where lead times grew from 48 weeks in 2022 to 145 weeks in the first half of 2025.

• Order backlog of the three Korean makers rose from 5.7 to 43 trillion won
• US transformer lead times grew from 48 to 145 weeks
• The US imports more than 90% of its large transformers
• Combined operating margin of the three firms hit 15.5% in H1