LG Uplus acquires 2.3% stake in KCD to enhance B2B digital solution portfolio

[Source: LG Uplus Corp.]

LG Uplus, smallest among Korea’s three wireless carriers, has acquired a 2.3 percent stake in local fintech startup Korea Credit Data (KCD) in its largest equity investment of 25.2 billion won ($18 million) for an unlisted company to enhance its B2B non-telco business portfolio.

With the equity investment, LG Uplus will cooperate with KCD to develop various financial services including digital ledger solutions for small and medium-sized enterprises (SMEs).

Founded in 2016, KCD operates its bookkeeping app for SMEs called Cashnote. The app, used by over 1.2 million SME owners in Korea, helps track a comprehensive overview of cash flow, including revenues, credit card sales, and expenditures. The app also provides services like SMEs’ sales ledgers, policy information, and point-of-sale (POS) systems.

They will also develop other financial services in POS and transaction network areas and introduce so-called Digital Infra Package that provides paid service to enhance revenue based on free revenue data. With the partnership, the two companies expect to add 30,000 new clients every year by 2027.

With the latest investment, LG Uplus aims to expand its non-telecom B2B digital solutions. The Korean digital solution market for SMEs is currently dominated by KT, the country’s largest telco and internet service provider.

Previously, LG Uplus pledged to double its revenue from non-telecom businesses to up to 40 percent of its total revenue by 2027, to achieve a corporate value of 12 trillion won. It has increased its R&D investment in non-telecom areas to 63.2 billion won in the first half, 68 percent up from the same period last year.

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