LG Uplus to spur generative AI service for new growth: CEO

LG Uplus Corp., a leading mobile carrier in South Korea, is accelerating its generative artificial intelligence business as a new growth driver amid a slowdown in the traditional telecommunications industry.   

“We will launch a generative AI ixi-Gen in the first half of next year. As a chatbot service for our telecom and internet protocol TV (IPTV) businesses, its major role will be customer support and personalized product recommendations,” said LG Uplus Chief Executive Hwang Hyeon Sik in an interview with The Korea Economic Daily on Monday.

With the launch of the generative AI, the company will step up its digital transformation.

“We are planning to secure future growth engines in AI-powered contact centers, freight brokerage platforms and electric vehicle charging businesses,” the CEO added.

He highlighted that the mobile carrier will speed up the expansion of its non-telecom services as new revenue sources in the saturated telecom market.

The telecom industry stagnation is worse and faster than expected, and the industry slowdown will continue for quite some time, said the CEO.

The mobile carrier will step up the monetization of its platform businesses next year. Sporki, its live streaming and video-on-demand services for global sports events, will place ads on such content. The company aims to increase Sporki’s monthly active users by 60% next year.

In the telecom business, it will strengthen customized mobile plans like Nerget. Launched last month, Nerget offers 16 plans that combine data, voice call and text message services at a wide range of prices.

LG Uplus will step up the customization of Nerget services for specific users, such as consumers in their 20s, school teachers and military personnel.

Hwang has laid new groundwork in his three-year term, leading to 1 trillion won in operating profit and boosting revenue from non-telecom businesses in the period, an LG Uplus official said.

The CEO, whose first three-year term will end in March 2024, is highly likely to serve another three-year term following LG Group’s reshuffle last week. His tenure extension will be confirmed at LG Uplus' shareholders meeting in March next year.

LG Uplus accounted for 22.1% of Korea's total wireless subscription base as of the end of September, beating KT Corp.'s 21.5%, according to science ministry data. The country's top mobile carrier SK Telecom Co. made up 38%.

Write to Ji-Eun Jeong at jeong@hankyung.com

Jihyun Kim edited this article.