Vivian Signs MOU with Kwanglim... Investment and Support for Offshore Wind Power Project

Youngseop Son, CEO of Vivian (right), and Taeyoung Hwang, CEO of Kwanglim, are posing for a commemorative photo after signing a business agreement at the Vivian headquarters located in Jung-gu, Seoul, on the 7th. Provided by Vivian

Vivian is joining forces with Kwanglim to fully enter the renewable energy business, with a particular focus on offshore wind power. The strategy is to obtain new growth engines by adding environmentally friendly energy initiatives to its traditionally fashion-focused business structure.

Vivian announced on September 10 that it signed a memorandum of understanding (MOU) for cooperation on renewable energy business with Kwanglim on the 7th.

Under this agreement, Vivian will make strategic and financial investments in Kwanglim's eco-friendly energy development projects and collaborate across the entirety of these initiatives. The specific scale, method, and timing of the investment will be finalized following detailed due diligence, the completion of legal procedures, board approval, and the execution of a definitive agreement.

The key project is the ‘Yeonggwang Future Offshore Wind Power Project’ currently being promoted by Kwanglim. This is a plan to build a wind farm with a capacity of 160 megawatts (MW) in the offshore area of Baeksu-eup, Yeonggwang-gun, South Jeolla Province. The site will house 10 wind turbines of 15 MW class and one turbine of 10 MW, for a total of 11 wind turbines. The total project cost is approximately 1 trillion won.

The business feasibility of the project is also improving. In June, Kwanglim received approval to change the grid connection, reducing the length of onshore transmission lines from around 40km to about 500 meters. As a result, the company expects to achieve cost savings of up to 350 billion won. By securing a substation just 500 meters from the project site, the company has also obtained a favorable grid connection location, and is currently proceeding with follow-up approvals including an environmental impact assessment.

According to analysis by the Offshore Wind Power Research Institute at Kunsan National University, the completed power plant will be able to generate between 278,953 and 326,224 megawatt-hours (MWh) of electricity annually, which is expected to result in more than 100 billion won in annual revenue.

Vivian, as a KOSPI-listed company, plans to leverage its access to the capital market to support project funding. Kwanglim will be responsible for securing power generation permits as well as providing equipment and technical support.

The two companies have also established a joint venture (JV) named ‘Honam Renewable Energy Corporation’ in Yeonggwang, South Jeolla Province, in order to expand their business scope beyond the construction of power plants to include development, operation, and logistics. This company will provide services such as development management, project management (PM), equipment procurement, and operation and maintenance (O&M) to power plant operators.

They have already established agreements with Korea Energy Engineering & Construction (KEEC), a domestic wind power operation and maintenance company, and Ocean Ship, a marine infrastructure specialist, thereby forming a value chain spanning from development to maintenance and transportation.

Youngseop Son, CEO of Vivian, said, “This agreement serves as an important opportunity to establish renewable energy as a new pillar of growth for our company. We will combine both companies’ core capabilities to enhance business competitiveness and expand across the entire value chain, including maintenance, logistics, and marine transport, to secure sustainable growth engines.”

This content was produced with the assistance of AI translation services.