AI PRISM Customized Economic Briefing
*Editor's note: AI PRISM (Personalized Report & Insight Summarizing Media) is an AI-powered customized news recommendation and summary service developed with support from the Korea Press Foundation. It selects and delivers six tailored news stories for each reader type.*
[KEY ISSUE BRIEFING]
Transformer Boom: Korean transformer manufacturer IEN Hanchang is pursuing a minority stake sale after posting an operating profit margin of 67.9%. The transformer industry is experiencing an unprecedented boom driven by global AI data center investment expansion and U.S. power grid replacement demand. IEN Hanchang, which generates 99% of its revenue from the United States, is attracting attention for its growth potential.
Intensifying AI Competition: Trillion Labs and Motif Technologies have entered the supplementary call for Korea's national AI foundation model project. The government plans to select one additional elite team this month, providing 768 units of Nvidia's latest B200 GPUs and training infrastructure. Officials will closely evaluate whether the new entrant can meaningfully compete with the three existing teams.
Biotech Advances: Samsung Bioepis secured exclusive preferred drug status on the formulary of America's largest PBM, with even original medications excluded. Meanwhile, SK On achieved a dramatic turnaround by winning more than 50% of the second government ESS tender, fully recovering from its first-round failure by emphasizing domestic material usage commitments and industrial contribution.
[STARTUP FOUNDER INTEREST NEWS]
1. IEN Hanchang Explores Minority Stake Sale Amid Transformer Boom
Korean transformer manufacturer IEN Hanchang is pursuing a minority stake sale at a valuation in the trillions of won, backed by an operating profit margin of 68%.
Founded in 1975, the company began developing the U.S. market in 1998. In 2024, IEN Hanchang recorded revenue of 225.2 billion won and operating profit of 153 billion won, with more than 99% of sales generated in the United States.
The transformer industry is experiencing a boom driven by expanding global AI data center investment and growing U.S. power grid replacement demand. The company plans to sell stakes to global investment banks or private equity funds before pursuing a Nasdaq listing.
Industry observers note the sharply elevated valuation resulting from the recent boom could prove burdensome for potential acquirers.
2. Trillion Labs and Motif Challenge for National AI Foundation Model Project
Trillion Labs and Motif Technologies have applied for the supplementary call for Korea's national AI foundation model project, known as "Dokpamo."
Naver Cloud and NC AI, which were eliminated in the first round, did not participate in this supplementary call. The Ministry of Science and ICT plans to select one additional elite team this month after document review and external expert evaluation.
Trillion Labs, which independently developed a 70-billion-parameter LLM and released it as open source within one year of establishment, is competing against Motif, which has experience developing both high-performance LLMs and LMMs.
The government will provide the selected company with 768 units of Nvidia's latest B200 GPUs, joint data procurement, and training infrastructure. A mid-term review is scheduled for early August, with final evaluation in December to select the ultimate two teams.
3. Samsung Bioepis Gains Exclusive Status on Top U.S. PBM Formulary
Express Scripts, America's largest pharmacy benefit manager, has listed two Samsung Bioepis biosimilars as preferred drugs while excluding both original medications and competing products from its formulary.
ESI controls approximately 30% of the U.S. PBM market, positioning Samsung Bioepis for significant revenue growth in the United States.
Paroxysmal nocturnal hemoglobinuria treatment Epysqli has effectively secured prescription exclusivity after original drug Soliris, follow-on therapy Ultomiris, and competing biosimilar Bekemv were all removed from the formulary.
Plaque psoriasis treatment Pyzchiva Private Label is also expected to become a primary prescription product after original drug Stelara and multiple competitors were excluded.
Samsung Bioepis recorded U.S. revenue of 451.7 billion won last year, an 80.1% increase from the previous year.
[STARTUP FOUNDER REFERENCE NEWS]
4. SK Group and KKR Negotiate Integrated Renewable Energy Platform
SK Group and global private equity firm KKR are negotiating to establish an integrated renewable energy platform.
The venture would consolidate clean energy assets including solar, offshore wind, fuel cells, and ESS held by SK Innovation, SK Ecoplant, and SK Discovery.
KKR plans to deploy substantial capital through its $20 billion global infrastructure fund and $9 billion Asia infrastructure fund.
Investment banking sources estimate the renewable energy assets SK Group will contribute at a minimum of 2.5 trillion won. Including KKR's initial investment, the new entity's enterprise value could reach 5 trillion won.
Significant synergies are expected from potential large-scale power supply to semiconductor and AI infrastructure facilities being developed by SK Hynix and SK Telecom.
5. Medical AI Firm Vuno Raises 10 Billion Won Strategic Investment
Medical AI company Vuno has secured 10 billion won in strategic investment from Pathway Investment.
Vuno is issuing perpetual convertible bonds at a conversion price of 20,095 won. The funds will be used for global business expansion and operating capital.
Pathway Investment CEO Lee Sang-jin, who led this investment as Vuno's former chief financial officer, noted the approaching U.S. market entry for flagship product DeepCARS, an AI-based cardiac arrest prediction medical device, and the revenue growth potential of Hativ.
Lee previously worked at Korea Investment Partners and Dominus Investment, and led Vuno's IPO process. Since founding Pathway, he has invested in biotech companies including Protina, Revsmed, Galux, and GenEdit.
6. SK On Wins 50% of Second Government ESS Tender in Major Turnaround
SK On won 284MW, more than 50% of the second energy storage system central contract market valued at over 1 trillion won, achieving a dramatic turnaround.
After failing to win any contracts in last year's first tender, SK On gained competitive advantage in industrial and economic contribution by emphasizing domestic material usage commitments and LFP battery safety.
The government strengthened non-price factor evaluation weight from 40% to 50% in this round, including domestic equipment usage criteria.
SK On announced it will source cathode materials, electrolytes, and separators for ESS LFP batteries entirely from domestic suppliers and expand Seosan plant production capacity to 6GWh.
Samsung SDI performed solidly by winning 35.7% (202MW), while LG Energy Solution struggled with only 14.0% (79MW).
