Bo-eun leads the digital content team. She has covered foreign affairs, North Korea, tech, economy and gender issues at The Korea Times. She did a short stint at the South China Morning Post in Hong Kong, where she obtained a new perspective on news production and life. Small sources of joy for her are lounging in the sun, having a good latte and swimming.
LG has advantage as partner for Disney: CEO
LG Uplus CEO Hwang Hyeon-sik speaks during a press conference held at the telecom firm's headquarters in central Seoul, Wednesday. Courtesy of LG Uplus
By Kim Bo-eun
Company pledges to bring up percentage of non-telecom biz to 30% by 2025
By Kim Bo-eun
LG Uplus CEO Hwang Hyeon-sik is confident that he can strike a content deal with Disney as the Korean mobile carrier has a proven track record of handling a content-driven business with global top-tier providers such as Netlix and YouTube.
“From Disney's standpoint, LG Uplus could be the right fit in terms of providing its content to mass consumers in a more convenient way. Once negotiations are finished, then we may be able to announce good news,” the CEO told reporters in a news conference at the company's head office in downtown Seoul. This was Hwang's first press conference since he took over the position in March.
“What I've learnt from negotiations with Disney is Disney has higher standards both in terms of service, convenience and quality. It seems that LG Uplus' collaboration with Netflix and YouTube is helping us get a better position. Regarding the timing of the availability of Disney Plus, I would say this is Disney's decision,” he said. LG Uplus earlier became the first local network operator to partner with Netflix.
The LG Group's telecom affiliate has been in talks with Disney since last year regarding the launch of Disney Plus here, which is widely expected to be within this year.
"The segment we are targeting is also considerably similar to the segment Disney is targeting for its over-the-top (OTT) media service,” Hwang noted.
The U.S. media giant hasn't laid down a specific timetable for the expansion of its Disney Plus streaming service in Asia, though it earlier indicated that launches in South Korea and Hong Kong could happen sometime in 2021. Disney hasn't renewed its licenses to provide Korean streaming platform Wavve with 100 of its film titles.
The CEO said LG Uplus will expand its portion of non-telecom businesses to 30 percent by 2025, up from the current 20 percent. The shifting of gears toward new business such as media and internet data centers comes at a time when telecom companies are seeking new growth engines amid market saturation for telecom services here.
To achieve this, the company is looking to secure options in six sectors ― artificial intelligence, big data, cloud storage, security, B2B solutions, and media content. Aside from partnerships with relevant firms, the CEO said LG Uplus will eye strategic investment opportunities and M&As, as well as increase its pool of experts in the six sectors to 4,000 by 2025, up from the current 800.
"We project that the shift in the B2B market will accelerate to wireless from wired and to solutions from infrastructure and that this will present greater growth opportunities than B2C businesses," Hwang said.
LG's telecom affiliate is working closely with LG Group's AI Research lab in various relevant sectors. In the mobility sector, LG Uplus plans to focus on infotainment in connected cars, and create synergy with LG Electronics' auto parts business. LG Electronics launched a joint venture with Magna International, Thursday, which will focus on the electric powertrain market.
As for business opportunities in “smart or connected cities,” LG Uplus has begun undertaking projects, earlier wining a 45 billion won intelligent transportation system contract for the city of Gangneung in Gangwon Province and also a smart city project contract for the administrative city of Sejong, with LG CNS, an LG affiliate in IT services.