LIG Group secured a 57.6% controlling stake in telecommunications power equipment manufacturer Dong-A Elecom for 20 billion won ($14.5 million), according to investment banking sources.
The acquisition represents another attempt by the Seoul-based conglomerate to reduce its dependence on defense revenues, which have historically made the group vulnerable to government budget fluctuations. LIG’s primary asset, missile manufacturer LIG Nex1, generates most of the group’s income from South Korean military contracts.
Chairman Lee Geon-soo, who previously held an 83.2% stake in Dong-A Elecom, sold a portion of his shares alongside the company’s issuance of new equity to complete the transaction. The 49-year-old telecommunications supplier has been expanding beyond its traditional power systems business into electric vehicle charging equipment and renewable energy conversion devices.
LIG’s diversification efforts have intensified since the company sold its insurance subsidiary in 2015, leaving it heavily concentrated in defense. The group maintains a 38.09% stake in LIG Nex1, which recently won major contracts for South Korea’s next-generation air defense systems.
Industry analysts note that power electronics technology could complement LIG Nex1’s defense equipment requirements, though the acquisition’s modest size suggests limited near-term impact on the group’s revenue concentration risks.
