Taihan Cable & Solution Co. said Thursday it will raise 526 billion won ($406 million) in a rights issue to expand its production facilities amid rising demand for submarine cable products.

Taihan Cable plans to issue 62 million common shares at 8,480 won per share, and the shares will be sold to its existing shareholders, the company said in a regulatory filing.

The South Korean cable company said it will use 470 billion won out of the proceeds to build its second domestic submarine cable plant by 2026.

And it will spend about 50 billion won to build an underground cable plant or acquire a local underground cable plant in the United States, Europe and the Middle East, the statement said.

The company has yet to decide on the location for the No. 2 subsea cable plant scheduled to begin operations in the first half of 2027, it said.

Taihan Cable is building the No. 1 submarine cable plant near a port in Dangjin, 78 kilometers south of Seoul, for competition in the first half of 2025, a company spokesperson said.

Taihan Cable, the country's second-biggest power cable company by sales after LS Cable & System Ltd., currently operates an underground cable plant in Dangjin. (Yonhap)