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Korea’s photovoltaic industry is facing severe restructuring status affected by the ailing European economy
and the lower prices offered by Chinese companies.
Woongjin Group, which made a plan to generate visible business profit with its newly equipped Polysilicon
mass-production system ensuring 5,000 tons on a yearly basis, could not avoid being affected by such
globally widespread factors.
The Group’s photovoltaic affiliate Woongjin Polysilicon has halted the operation of its local factory and
Woongjin Energy has failed to retain its supply contract of ingots and wafers following an net loss of
US$ 7.6 million in the third quarter of last year.
Woongjin Group is thus considering a merger between Woongjin Polysilicon and Woongjin Energy as a
strategic approach to overcome their business difficulties.
Such a merger is expected to speed up the decision-making process over the Polysilicon business within
the group and could cut costs significantly by lowering the doubly invested cost in their management,
while also allowing Woongjin Polysilicon to post visible growth within five years.
Korea Iron $ Steel (KISCO) is considering selling off its photovoltaic energy division. KISCO, which
became the first Koran firm to enter the thin film solar cell market in 2007, currently operates a 65 MW
(megawatt) PV plant in Chungbuk Province for photovoltaic cells and modules. It has thus far invested
US$130.1 million in its PV operations in anticipation of achieving annual sales of US$89 million.
However, last year’s the company’s earnings posted a highly disappointing US$ 8.9 million, which caused
the company to sell off its thin film and rooftop solar divisions.
Smaller PV players are actively advancing into the M&A market. Millinet Solar, a mid-sized PV firm based
in Daegu Province, is currently on the market, while Kyungdong Group’s 100 MW PV module plant in
Eumseong, Chungbuk Province was reportedly sold off to Shinsung Solar Energy in November last year.
Amidst these main stream players, some photovoltaic firms are trying to attract private capital through
strategic investors. Polysilicon maker HanKook Silicon received an injection of US$224million from S-Oil
last year in exchange for joint management.
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