LG Uplus has formed a task force to respond to South Korean government’s so-called “New Deal” economic policy, TheElec has learned.
The task force was been overseen directly by company CEO and vice chairman Ha Hyun-hwoi, people familiar with the matter said. The response was considered slower than rival KT, they said, but LG was making considerable efforts in the force. The team of 30 is led by vice president Choi Taek-jin.
Earlier on July 6, KT announced that it will support the government’s New Deal policy and announced that it was forming a task force to respond. Park Yoon-young, head of the company’s enterprise business group, was heading the task force. KT said at the time that the force will be comprised of over 200 personnel from its business-to-business, artificial intelligence (AI), 5G, cloud, network, new business and research divisions.
SK Telecom, meanwhile, is yet to form a task force. A spokesperson for the carrier said it was preparing to form an organization to react to the government policy.
On July 14, South Korea President Moon Jae-in said the government plans to spend 114 trillion won in public funding up to 2025 for what he called “Digital New Deal” and “Green New Deal.” Total investment up to 2025, when combined with those from the private sector, will be around 160 trillion won, he said.
On July 15, Finance Minister Hong Nam-ki visited KT’s event for the launch of its building safety monitoring service called KT GiGa Safe Social Overhead Capital at Hanam City, Gyeonggi Province.
Hong said that he hoped the service expanded nation wide in light of the government’s New Deal policy. KT’s Park, who was also at the event, said the telco was the only one who could expand such service nationwide as it had over 320 base station operation sites and 780,000 kilometers of optical cable installed in the country. KT would use its “overwhelming” telecom infrastructure, AI and big data technology to support the New Deal, he said.
The Moon Administration said it plans to invest 58.2 trillion won for the Digital New Deal, 73.4 trillion won for the Green New Deal and 28.4 trillion won to increase safety networks. 44.8 trillion won, 42.7 trillion won and 26.6 trillion won of public fund will be spent for each policies, respectively. People familiar with the matter said telcos were keen to find new business opportunities from the policies.