LG CNS to drive AI transformation for clients

LG CNS CEO Hyun Shin-gyoon speaks throughout a press convention on the Conrad Seoul lodge, Thursday. Yonhap

LG CNS will deal with driving synthetic intelligence (AI) transformation for its purchasers as a part of its mid- to long-term progress technique following its deliberate preliminary public providing (IPO) subsequent month, its CEO stated Thursday.

The choice comes because the demand for AI and cloud companies grows in Korea and overseas.

The 2 areas have, in recent times, emerged as main progress areas for the IT service affiliate of LG Group. Their mixed gross sales accounted for 51.6 p.c of the agency’s whole in 2023.

“We’ll strengthen our technological functionality in AI and cloud companies to turn out to be the primary mover in international digital transformation,” LG CNS CEO Hyun Shin-gyoon informed reporters throughout a press convention.

The occasion was organized to elucidate its imaginative and prescient after going public on the benchmark KOSPI subsequent month. LG CNS submitted its securities registration assertion to a related authority in December and is predicted to debut on the primary bourse on Feb. 4. The agency’s market capitalization is forecast to succeed in some 6 trillion received ($4.1 billion) shortly after itemizing.

Since January 2024, the corporate has operated its personal AI heart and helped its purchasers within the monetary business perform their generative AI companies efficiently, the corporate stated.

The LG affiliate is on the trail to reaching regular earnings progress with its steady enterprise portfolio, which encompasses not solely the 2 subsequent income areas, but in addition conventional IT service areas and good logistics.

LG CNS’ gross sales soared to five.6 trillion received in 2023, up 70.7 p.c from 2019. The determine for the primary three quarters of final yr additionally got here in at 3.95 trillion received, up 7 p.c from a yr earlier.

Nonetheless, the corporate hopes to develop its footing overseas by means of the upcoming IPO.

“Our IPO bid will function a serious turning level for us to make a leap ahead on the worldwide stage,” Hyun stated. “We hope our itemizing will present constructive momentum for the native inventory market.”

Concerning considerations surrounding the continued political turmoil in Korea, Hyun dispelled them, stating that overseas buyers had been „much less apprehensive“ than anticipated concerning the political uncertainty attributable to President Yoon Suk Yeol’s martial regulation in December.

“We had been involved that overseas buyers’ sentiment within the Korean market will freeze because of a collection of unfavourable occasions right here,” Hyun stated.

“However their considerations concerning the Korean financial system and the native capital market weren’t severe after we had pre-IPO investor relations overseas.”