LGU+ Launches New Freight Brokerage Business

Building a Freight Transportation Brokerage Platform... Trademark Application and Hiring

LG Uplus is toying with a new logistics business card. It appears to be entering the market by building a freight transportation brokerage platform.

According to the Patent Information Search Service of the Korean Intellectual Property Office on the 20th, LG Uplus filed a trademark application for 'Hwamul Itgo' on May 24. The company classified the trademark under transportation services.

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It has also started securing personnel. Frontend and backend developers for building the freight transportation brokerage platform were recruited until the 19th.

LG Uplus is considering building a freight transportation brokerage platform to enter the logistics market. It is preparing to create a Logistics as a Service (LaaS) platform that connects logistics to provide convenient delivery services. Within the platform, shippers and carriers are connected, and tasks necessary for freight transportation such as dispatching, route guidance, and settlement can be handled at once. Dispatch algorithms and data analysis are used to improve transportation efficiency. LG Uplus has already entered the mobility business with connected cars and electric vehicle charging services.

It may sound unfamiliar that mobile carriers are entering the freight brokerage market at first glance. However, many major domestic and international carriers are engaged in logistics businesses. SK Telecom currently does not operate logistics business directly, but its SK Square subsidiary T map Mobility operates a freight transportation brokerage solution. T map Mobility was spun off from SK Telecom’s mobility business unit. KT established the digital logistics specialist company 'Rollap' in 2021 and launched the AI freight transportation platform 'Brocarry.' Also, the US leading carrier Verizon is attempting drone delivery, and Germany’s Deutsche Telekom supplies digital logistics solutions.

An industry insider said, "The most important factor in the logistics brokerage business is control, and carriers have network control know-how, so they are well-positioned to demonstrate their capabilities," adding, "Since they also have platform business experience, they are competitive in the digital logistics business." In the long term, logistics brokerage solutions can create synergy by combining with carriers’ core new businesses such as autonomous driving, Intelligent Transportation Systems (ITS), and Urban Air Mobility (UAM).

Meanwhile, regarding this, LG Uplus stated, "The CTO organization is conducting research and development (R&D) and testing on various new technologies," and added, "The freight transportation brokerage platform is one of them, and it is currently at the business review stage."