U.S. Grid Security Order Could Benefit Korean Electricity Equipment Makers
U.S. President Donald Trump has declared a national emergency over potential cybersecurity and national security risks to the country’s Bulk-Power System, according to Chosun Daily.
The Aug. 26 executive order allows the U.S. Department of Energy to restrict certain foreign-made grid equipment and calls for federal procurement rules to prioritize U.S.-made power infrastructure.
The policy could benefit Korean manufacturers with U.S. production bases, including Hyosung Heavy Industries, HD Hyundai Electric and LS ELECTRIC.
According to Chosun Daily, Yuanta Securities Korea researcher Son Hyun-jung said, “The U.S. is strengthening its ‘Buy American’ policy for federal energy infrastructure procurement, which could further boost the competitiveness of firms with local production facilities.”
The companies operate or are expanding U.S. production of transformers and switchgear as demand rises due to AI data centers, manufacturing expansion and aging grid infrastructure.
Shares of the three companies rose on Aug. 27 following the announcement.
