South Korea-based tier-two LED lighting firms Kumho Electric and Posco LED saw 2012 revenues grow 121% and 184% respectively on year.

The firms' 2013 revenues are forecast to show on-year growth of 42% and 150%, reaching KRW123.3 billion (US$116 million) and KRW100 billion respectively, according to Digitimes Research.

In South Korea, LED lighting firms of different sizes have different overseas strategies due to government policies. Kumho is a medium-size firm, and therefore has less restrictions on selling products in the domestic market. The firm has also been expanding the international business by obtaining certification and patents. Posco LED is a large-size firm and has more restrictions on domestic sales. Hence the firm has been focused on industrial lighting and the international market.

Kumho adopts vertical integration by procuring shares of upstream LED chipmakers and midstream packaging houses. In contrast, Posco LED procures LED lighting component from other firms.