Park Dong-suk becomes billionaire as Sanil Electric profits from AI boom

In South Korea, Park Dong-suk, the founder and CEO of Sanil Electric, became a billionaire as the demand for electricity surged, driven by the booming artificial intelligence industry. Sanil Electric has experienced a remarkable 110% increase in its share price since the selloff on Liberation Day in April. Park, who owns 55% of the company alongside his wife, has an estimated net worth of $1.2 billion as of the latest stock market close on Friday. This surge is attributed to the company's role in manufacturing electrical transformers, essential for changing voltage and ensuring the safe use of electricity. The company's revenue showed a significant increase of 56% year-over-year, amounting to 334 billion won ($240 million) for 2024. Net income also saw a remarkable rise, more than doubling to 84 billion won. Sanil Electric reported expectations of continued growth in electricity demand, citing the increasing sophistication of information and communication technologies, the rise of electric vehicles, and the proliferation of data centers necessitated by the digitalization of information. Furthermore, Sanil Electric noted that more than 60% of its revenue derived from the U.S. market, underscoring its growing influence in international markets. Major contracts, such as the over $11.4 million order from GE Vernova, exemplify the robust demand for transformers that are critical in modern power grids. Analysts predict sustained order growth for the company as it secures contracts with significant utility companies like PG&E and Duke Energy in the U.S., showcasing its ability to meet various technical requirements of large-scale utilities. The expansion of data centers by major corporations, including Meta and Elon Musk's AI company xAI, has heightened the demand for transformers. These companies are scaling up their capacities to support AI technologies, leading to speculation about future shortages of specific electrical components, including voltage step-down transformers. The rapid growth of artificial intelligence and its reliance on extensive data processing capabilities promise further opportunities for Sanil Electric and the broader electrical manufacturing sector in the coming years.