0
IT

LG to sell stake in IT arm LG CNS - report

Wednesday 12 June 2019 | 07:13 CET | News
SmarTone South Korean conglomerate LG Group has announced it is studying a potential sale of its stake in IT unit LG CNS, Yonhap news agency reports, citing an unnamed representative of LG Group. "We plan to sell LG CNS to beef up competitiveness, although nothing in detail has been decided yet", the company representative said. 

According to unnamed industry sources, the LG CNS sale plans follow the Fair Trade Commission's recent decision to strengthen regulations against intra-affiliate trades of family-controlled business groups, such as LG Group. Companies with 20 percent or more of their shares owned by controlling families will now face tougher regulations. The new regulations target affiliates in which more than 50 percent of shares are owned by such firms. As such, LG needs to sell more than 35 percent of its stake in LG CNS to steer clear of the new regulations.

SmarTone

LG Corp.’s mobile operator affiliate LG Uplus recently announced plans to sell its payment gateway business. The decision is due to decreasing operating profit and rising competition in the sector, The Korea Times earlier reported, citing a company statement. "We are studying selling our PG business unit, but nothing has been decided yet", an unnamed LG Uplus representative said. LG Uplus’ payment gateway business is valued at around KRW 400 billion.



Free Headlines in your E-mail

Every day we send out a free e-mail with the most important headlines of the last 24 hours.

Subscribe now

Categories: IT
Companies: LG
Countries: Korea, Republic of
::: add a comment

Add comment

We welcome comments that add value to the discussion. We attempt to block comments that use offensive language or appear to be spam, and our editors frequently review the comments to ensure they are appropriate. If you see a comment that you believe is inappropriate to the discussion, you can bring it to our attention by using the report abuse links. As the comments are written and submitted by visitors of the Telecompaper website, they in no way represent the opinion of Telecompaper.


Related

LG CNS, Microsoft to develop cloud-based services for enterprises

Published 18 Jun 2019 13:22 CET | World
LG CNS, the IT services subsidiary of LG Group, has teamed up with Microsoft on the development of cloud-based enterprise ...

LG Uplus to sell payment gateway business

Published 05 Jun 2019 20:59 CET | Korea, Republic of
South Korean mobile operator LG Uplus has announced plans to sell its payment gateway business. The decision is due to decreasing ...

LG CNS wins e-library system contract from Uzbekistan govt

Published 05 Oct 2016 12:44 CET | Uzbekistan
LG CNS, the system integration subsidiary of LG, will deploy an e-library system in Uzbekistan. The contract is worth around KRW ...

LG growing US mobile share partly thanks to prepay market

Published 11 Aug 2016 16:25 CET | United States
LG had a 14 percent share of the US smartphone market in the second quarter of 2016, up from just 7 percent two years earlier, ...

LG posts Q2 mobile loss as G5 fails to sell

Published 28 Jul 2016 07:42 CET | World
LG Electronics reported profits under pressure in the second quarter, led by losses at its mobile division as its latest flagship ...

LG opens up G5 accessories to third-party developers

Published 12 Apr 2016 16:13 CET | World
LG Electronics has announced that the modular functionality of the LG G5 smartphone has been opened to third-party developers, ...

LG wins smart transportation contract from Malaysia govt

Published 05 Feb 2016 09:06 CET | Malaysia
LG CNS, the system integration subsidiary of LG, has won a contract from the Malaysian government, The Korea Times reports. Under ...

LG CNS picks Entropic's SoC for IP hybrid STB in India

Published 15 Sep 2014 14:04 CET | India
South Korean IT services company LG CNS has selected Entropic's EN7190 HD IP set-top box (STB) system-on-a-chip (SoC) for its new ...

Trident, LG CNS to offer advanced Android STB

Published 13 Sep 2011 08:52 CET | World
TV semiconductor provider Trident Microsystems has collaborated with South Korean LG CNS to offer advanced Android-based hybrid ...

LG CNS, Microsoft team up on IT in Korea

Published 03 Sep 2010 03:49 CET | Korea, Republic of
Korean IT services provider LG CNS has signed a memorandum of understanding with Microsoft for IT services. The partnership is ...