LG Uplus Invests 25.2 Billion KRW in Korea Credit Data

Equity Investment and Business Partnership Agreement with Korea Credit Data
Collaboration on New Small Business Package Launch and Joint New Business Initiatives

LG Uplus CEO Hwang Hyun-sik (right) and Korea Credit Data CEO Kim Dong-ho (left) are posing for a commemorative photo at the signing ceremony.

[Asia Economy Reporter Lim Hye-seon] LG Uplus announced on the 6th that it has made a 25.2 billion KRW equity investment in Korea Credit Data, the number one company in self-employed business management solutions, to strengthen its SOHO business competitiveness, and signed a business cooperation agreement. This investment is the largest equity investment LG Uplus has made in an unlisted company to date.

The business agreement ceremony held at the LG Uplus Yongsan headquarters was attended by key executives including Hwang Hyun-sik, CEO of LG Uplus, and Kim Dong-ho, CEO of Korea Credit Data.

Korea Credit Data is a company that provides management solutions for small business owners centered around 'Cash Note.' Korea Credit Data offers bookkeeping services that make it easy to understand store status at a glance, such as sales, credit card settlement amounts, and regular customer analysis. It also has subsidiaries including Korea Credit Information, a credit evaluation company for sole proprietors; I'm U, a point-of-sale (POS) manufacturer; Korea F&B Partners, which operates B2B food material services; and 'Persona,' which provides policy support information services. The total number of business locations using services provided by Korea Credit Data and its subsidiaries is 1.7 million. The Cash Note service alone has about 1.2 million business customers.

LG Uplus offers the 'U+ Uri Gage Package,' which combines telecommunications products exclusively for small business owners with tax and sales management solutions like Cash Note. It also provides 'Uri Gage Wireless Internet,' the first wireless internet service exclusively for small business owners by a telecom company, and 'Safe Payment Internet,' a service that establishes a secure payment environment without communication failures.

Through this equity investment and business agreement, LG Uplus plans to expand cooperation areas to various small business sectors provided by Korea Credit Data, including POS and payment networks, beyond just Cash Note. They will launch a new small business exclusive product called the 'Digital Infrastructure Package' that combines each company's products and enhance product competitiveness through mutual service and function sharing.

For customers subscribing to the 'Digital Infrastructure Package,' both companies will provide additional services such as paid membership benefits for Cash Note and sales growth solutions along with telecommunications. They expect to achieve a synergy effect by acquiring more than 30,000 additional small business customers annually until 2027.

Additionally, both companies agreed to enhance services by integrating each other's functions into their apps specialized for small business owners. Specifically, LG Uplus will link key Cash Note features such as community, app push notifications, and alert talk into the U+ Uri Gage Package app, while Korea Credit Data will integrate telecommunications services and commercial district analysis functions from the U+ Uri Gage Package into the Cash Note app to improve app usability.

Both companies are also planning mid- to long-term cooperation strategies that go beyond short-term sales performance by promoting new joint businesses.

Hwang Hyun-sik, CEO of LG Uplus, said, "Through equity investment and business partnership with Korea Credit Data, we can provide more differentiated products and services to SOHO customers," adding, "We will combine the strengths of both companies to create a new standard for store digital infrastructure."