"We are currently raising KRW 20 billion in Series B funding for EV-related mergers and acquisitions (M&A). As the charging market is becoming increasingly concentrated, our goal is to quickly achieve a 3rd place market share through M&A. Despite being in operation for only two and a half years, we aim to bridge the seven-year gap with leading competitors."

CEO Kang In-cheol of PLUGLINK(Photo)Recently, CEO Kang In-cheol of PLUGLINK met with The Bell at the company's headquarters in Gangnam, Seoul, to discuss these goals. PLUGLINK, a startup in its third year, has demonstrated its capabilities by ranking 5th in the domestic market for Level 2 chargers. Since its establishment in 2021, the company achieved a nationwide distribution of 12,000 chargers by the end of last year, marking the fastest deployment rate among domestic EV charging operators (CPOs). The company aims to surpass 20,000 chargers and advance to the 3rd place position.



◇Annual KRW 20 Billion Funding Confidence Rooted in 'Integrated Data Management'

PLUGLINK's exceptional growth is attributed to the financial expertise of its founder, CEO Kang. Starting his career at Samil Accounting Corporation, Kang has served as a lead researcher in the PF division at Korea Ratings (assessing the economic and operational feasibility of power plants) and as a fund manager at Energy Infrastructure Asset Management (managing the KEPCO fund). Last January, he led a KRW 16.8 billion asset investment from KDB Infrastructure Asset Management and regional gas companies, which expanded the distribution of chargers.

He plans to continue pursuing structured finance in the future. He explained, 'Capital is a prerequisite for participating in the EV charging market,' and added, 'The ability to install chargers on a large scale with infrastructure finance capital has been the key to competing with large corporations.' He continued, 'Increasing the number of chargers is an ongoing challenge, and we plan to conduct infrastructure funding at a level of KRW 20 billion to 30 billion annually going forward.'

국내 CPO 중 이 방식으로 충전기 보급량을 늘린 곳은 플러그링크가 유일하다. 사업 제반 자료를 깔끔하게 정리해 금융기관에 제공할 수 있었던 게 큰 도움이 됐다. 플러그링크는 충전기 통합관리 플랫폼 '플링커넥터'를 운영 중이다. 플링커넥터 서버에는 플러그링크가 아파트 등에 충전기를 보급할 때 체결한 계약서와 시공도면, 한전 승인서, 충전소 이력 등 모든 자료가 탑재돼 있다.

PLUGLINK's nationwide charger status can also be monitored, allowing for prompt maintenance and support. CEO Kang explained, 'PLINK Connector is a collaboration tool designed for our partners, maintenance companies, and customer service call centers across the country, totaling around 800 partners.' He added, 'The advantage of the tool is that it consolidates fragmented data in one place, automating and streamlining operations. It has also been very helpful in our collaboration with financial institutions.'



◇Addressing Power Shortage Issues with 'Energy Tech'

PLUGLINK's business motto is 'Revolutionizing the EV Charging Experience.' This reflects their aim to provide a convenient charging experience to users through IT technology. CEO Kang In-cheol and the C-level members who joined him in founding PLUGLINK all agreed that the charging business should be elevated to the level of service excellence. Those who have used EVs since 2018 were dissatisfied with the inconvenient charging infrastructure in Korea, and this experience served as a motivation for their startup.

PLUGLINK's fees are more than 5% lower compared to competitors. Due to varying electricity rates by time of day, while other CPOs stick to time-based pricing, PLUGLINK has adopted a 'single subscription fee' model, which has faced some criticism. CEO Kang stated, 'If capital is a prerequisite for market participation, the reasons we are chosen in the market are our convenient charging experience and lower fees.' He added, 'We promised to maintain fees below the average of the top 10 companies from the beginning, and we have upheld that commitment.'

Being a latecomer in the domestic CPO industry has actually been advantageous in many ways. PLUGLINK's chargers differ from the legacy chargers provided by hardware-based companies. They have developed and incorporated their own 'smart charging' technology, which allows for selective charging in various scenarios. This technology enables users to distribute charging during peak times or focus on charging during periods of relatively lower electricity rates. As a result, cost savings can be achieved without the consumer being aware.

This approach reflects CEO Kang's deep concern about energy. He emphasized, 'In Korea, the power infrastructure is particularly insufficient, and if EV adoption reaches around 10%, aging apartment complexes will face serious power issues.' He added, 'Since the beginning of our company, I’ve been focused on this problem, which is why we’ve developed IT solutions to allocate power efficiently, avoiding the need for unnecessary transmission and distribution network expansions. It’s a kind of 'Energy Tech,'' he explained.

PLUGLINK is also developing various programs to increase EV demand. CEO Kang stated, 'We are planning and developing a program with KEPCO to provide carbon credits to EV owners.' He explained, 'By charging their EVs, owners will reduce carbon emissions and receive profits in the form of carbon credits.' He added, 'We are considering options for monetizing these credits through PLUGLINK or supporting fee reductions.'

◇Anticipated Solution Exports and Numerous M&A 'Love Calls'

PLUGLINK is also considering the export of its smart charging solutions in the future. Recently, the company has commercialized its B2B business model, 'PLINK Biz,' which provides customized chargers for commercial buildings and vacant land owners free of charge, sharing the revenue generated from charging. They plan to separately receive success fees for the smart charging technology from building owners and foresee the possibility of supplying this model internationally.

This model involves exporting a system that shares a portion of the profits saved from reduced costs due to in-house technology. CEO Kang stated, 'The need to deploy chargers in situations of power shortage is a global issue, and the power deficit in aging apartment complexes will become increasingly severe.' He added, 'Our charging solutions, developed to adapt to specific environments, are likely to be exportable and could become a significant source of revenue.'

He took a cautious stance on the prospect of an initial public offering (IPO), stating that expanding market share and achieving profitability are the primary goals. He said, 'Our top priority is to become a top 3 player in the market.' He added, 'The market environment has changed from last year, with a preference for profitable companies.' He also mentioned, 'We are receiving many M&A proposals from domestic and international companies,' and noted, 'Given the nature of our business, pursuing both IPO and M&A is possible, so an IPO is not necessarily our only goal.'

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