[Concall] LG Uplus "Investing 320 Billion KRW in IDC Construction, Strength of 'Economies of Scale'"

[Asia Economy Reporter Cha Min-young] "LG Uplus has strengths in 'economies of scale,' operating the largest internet data center (IDC) in Asia, Pyeongchon IDC."

On the 12th, Lim Jeong-hyeok, head of LG Uplus's Infrastructure Business Group, stated during the Q1 2021 earnings conference call in response to a question about the new Anyang IDC construction, "We also have a business advantage in being able to simultaneously provide the essential lines that accompany IDCs." Economies of scale is an economic term referring to cost reduction and increased profits resulting from increased production volume.

Earlier, LG Uplus announced through a disclosure that it will invest 318.1 billion KRW to build a new IDC in Anyang, Gyeonggi Province. The facility investment accounts for 4.16% of its equity capital, with a target completion date by the end of 2023.

Lim Jeong-hyeok added, "The domestic cloud market is rapidly growing, and as non-face-to-face activities become routine, online traffic is increasing, steadily expanding the related market. We also believe we have strengths in operational know-how accumulated through attracting and cooperating with leading operators such as the world's largest Cloud Service Broker (CSB) and online companies."