South Korea Promotes Next-Generation DC Power Grid to Support AI and Renewable Energy

South Korea has officially begun to foster the direct current (DC) industry as part of its strategy to respond to the growing demand for artificial intelligence (AI) data centers and renewable energy. The government aims to transition from pilot projects to real-world applications of DC technology, establishing standards and certification systems to secure a foothold in the global market.

On July 2, the Ministry of Environment and Energy and Korea Electric Power Corporation (KEPCO) held the 'K-DC Industry Expansion 2026' event at LS Electric's facility in Cheonan, South Chungcheong Province, where they unveiled strategies for expanding the DC industry. The government plans to collaborate with the private sector to create an initial market for DC power grids and establish an industrial ecosystem that connects research and development (R&D), demonstration, and commercialization.

DC power grids generate, store, and supply electricity in direct current rather than alternating current (AC). Since solar power, energy storage systems (ESS), batteries, and electric vehicle chargers inherently use direct current, this method reduces energy loss that occurs during the conversion between AC and DC. The rapid increase in AI data centers and renewable energy facilities has heightened the need for DC-based power grids.

The government intends to expand projects that apply DC grids to actual power systems and identify business models that reflect industry demand. Additionally, it will establish standards and certification systems while improving related regulations to support domestic companies in entering overseas markets. This initiative is part of a broader strategy to secure leadership in the global DC market.

The DC industry is still in the early stages of commercialization worldwide. As the demand for AI data centers and renewable energy facilities grows, countries are accelerating their competition in technology development and standard-setting. The South Korean government aims to leverage its competitive edge in power equipment manufacturing and power grid operation experience to capture the initial market and develop it into an export industry.

During the event, a memorandum of understanding (MOU) was signed for the establishment of a 'Global DC Technology Specialized Research Complex and Joint Technology Research Cooperation,' involving KEPCO, Korea University of Energy and Technology, LS Electric, LS Cable, Hyosung Heavy Industries, HD Hyundai Electric, and LG Electronics.

The participating organizations agreed to collaboratively pursue research, demonstration, standardization, certification, and commercialization of DC distribution technology based on a joint research complex within Korea University of Energy and Technology.

A groundbreaking ceremony for LS Electric's DC-based factory, known as the 'DC Factory,' was also held. This facility is the first in South Korea to connect solar power, ESS, and production and heating/cooling systems into a single DC power grid.

The government plans to expand the application of DC power grids to RE100 industrial complexes, AI data centers, and commercial buildings based on this case.

Lee Ho-hyun, the Second Vice Minister of the Ministry of Environment, stated, "The DC industry has significant growth potential due to the expansion of AI data centers and renewable energy. We will nurture it as a next-generation growth engine through initial market creation, technology development, and regulatory improvements."