LG Uplus Launches 'Non-Communication' Drive... Also Showcases 'Venture Investment' Facets

[Asia Economy Reporter Park So-yeon] LG Uplus, which is driving non-telecommunication businesses, is showcasing its capabilities as a venture investment company by discovering excellent investment cases.

According to the investment banking (IB) industry on the 19th, venture companies that LG Uplus has invested in over the past few years are being recognized for their corporate value in the market.

LG Uplus became an early investor in VentaVR, a 3D VR video production company, in 2018. Founded in 2015, VentaVR is the only 3D VR studio in Korea. It produces 8K high-definition 3D VR content and also provides 3D VR live services.

After partnering with LG Uplus, VentaVR raised investments twice, expanding its corporate scale. The company, valued at 4 billion KRW in 2018, was evaluated at around 9.5 billion KRW in 2019. After two rounds of equity investment, it is currently conducting a Series B investment round.

Autonomous driving technology startup 42dot is also cited as an early successful investment case by Uplus. The company’s corporate value grew from approximately 90 billion KRW at its founding in 2019 to about 500 billion KRW by the end of 2021.

42dot was founded in 2019 by CEO Song Chang-hyun, formerly of Naver, and is a startup in the future mobility sector including autonomous driving. It is a company that Hyundai Motor Group Chairman Chung Eui-sun has identified as a key partner in mobility business. Last year, Chairman Chung appointed CEO Song as head of the Taas division, overseeing Hyundai Motor Group’s mobility services. Since its establishment, the company has received investments totaling 130 billion KRW from large corporations.

The IB industry projects 42dot’s sales to be 3.3 billion KRW this year, 20 billion KRW in 2023, and over 300 billion KRW by 2025. Growth is expected to correspond with the full-scale launch of autonomous driving businesses by Hyundai Motor and others.

Meanwhile, LG Uplus President Hwang Hyun-sik said at the shareholders’ meeting the day before, “We will enhance competitiveness through differentiation in corporate infrastructure business and agilely develop businesses such as smart factories, smart mobility, and AI customer centers to increase growth potential.”

Uplus recorded operating revenue of 13.8511 trillion KRW, operating profit of 979 billion KRW, and net income of 724.2 billion KRW last year.

Additionally, it was decided to pay a year-end cash dividend of 350 KRW per common share. Accordingly, LG Uplus’s total dividend per share last year, including the interim dividend of 200 KRW, was 550 KRW, an increase of 22.2% compared to 450 KRW the previous year.

This content was produced with the assistance of AI translation services.