Metaverse-based virtual offices: New breadwinner for LG CNS

LAS VEGAS – While buzzwords such as avatar and the metaverse are on everyone’s lips these days, waking up in the morning and going to a virtual office created in the metaverse still seems a far-off dream.

Hyun Shin-kyun, chief executive of LG CNS Co., however, thinks otherwise.

“We are preparing a virtual office business where people can go to work in virtual space and as an avatar, do company work such as attend meetings and send emails,” he told The Korea Economic Daily on the sidelines of CES 2023 earlier this month.

“People will buy and sell things created by avatars. The era of manipulating an avatar in a metaverse-based virtual office will come within seven to eight years.”

An expert in high-tech areas such as artificial intelligence, big data and cloud computing, Hyun took the helm of LG CNS, the information technology service arm of LG Group, in an executive reshuffle last November after working for years as its chief technology officer.

He said digital transition (DX) technology is developing day by day, providing “endless” business opportunities for companies like LG.

“Our goal is to sell DX services to all corporate customers we know,” he said.

LG CNS, Korea's largest cloud computing service provider, has set providing virtual working spaces, including virtual factories, as the company’s new revenue source, according to the chief executive.

CREATING VIRTUAL OFFICES: NEW GROWTH DRIVER

Creating a virtual office is a new business that will succeed cloud computing, smart factory and smart logistics as growth drivers for IT companies, he said.

With the advent of Web 3.0, an idea for a new iteration of the World Wide Web which incorporates concepts such as decentralization, blockchain technologies and token-based economics, a world where people work in a virtual office is quickly becoming a reality, he said.

LG CNS recently established a Web 3.0 business team to lead the company’s DX-related businesses, including digital marketing.

“No matter how much it costs, we will actively recruit personnel specialized in new DX technology not only in Korea but also overseas,” said CEO Hyun.

LG CNS, which is 35% owned by Macquarie Group, is working on an initial public offering this year. Proceeds from its share sale will be used to finance new growth businesses, he said.

The planned IPO would allow Macquarie Group's private equity arm to exit from the Korean company.

Macquarie bought a 35% stake in LG CNS from LG’s holding company LG Corp. for 950 billion won ($769 million) in 2020, beating KKR & Co., the other shortlisted bidder.

LG CNS’ enterprise value is now estimated at more than 7 trillion won, industry watchers said.

Write to Ji-Eun Jeong at jeong@hankyung.com
In-Soo Nam edited this article.