[Click eStock] "KINX, Benefiting from the Spread of Contactless Culture"

[Asia Economy Reporter Hyungsoo Park] ResearchAlum expected on the 30th that KINX would benefit as the non-face-to-face culture caused by the novel coronavirus infection (COVID-19) takes root.

KINX is the only company in Korea that operates Internet Exchange (IX) and Internet Data Center (IDC) neutrally. Neutral means providing services according to customers' requirements.

Researcher Seonghwan Choi of ResearchAlum explained, "KINX's revenue structure increases as internet traffic increases," adding, "When traffic surges, Internet Service Providers (ISP) or Content Providers (CP) request additional high-capacity ports on the IX switch to secure more traffic capacity."

He continued, "Due to COVID-19, concerns about traffic overload are growing as remote work, online lectures, online shopping, as well as video streaming, gaming, and chatting usage have surged."

Researcher Choi forecasted, "Even after COVID-19 subsides, the expansion of traffic in the 4th industrial sector will continue with the full-scale launch of 5th generation communication (5G) services."

KINX's consolidated sales for this year are estimated to reach 75 billion KRW, a 16.1% increase from the previous year, and operating profit is expected to reach 20 billion KRW, up 21.4%.