LG Uplus Sees Profitability Recover in Q3, but Faces Challenges Including Hacking Cover-Up

AIDC revenue up 27.7%; mobile revenue down 0.9%
Operating profit rises on base effect from last year's voluntary retirement costs
Responding to hacking cover-up allegations and restoring customer trust remain key challenges

LG Uplus posted improved profitability in the third quarter of this year by boosting its artificial intelligence (AI) data center (DC) business, despite slow growth in its telecommunications business.

LG Uplus headquarters. Photo courtesy of LG Uplus.

LG Uplus said on November 4 that its consolidated operating profit for the third quarter of this year rose 84.1% year on year to 297.6 billion won. The increase reflected a base effect from one-off personnel expenses incurred last year. LG Uplus incurred 150 billion won in expenses when it implemented a voluntary retirement program for about 600 employees in the third quarter of last year.

Operating revenue (sales) fell 0.7% to 3.9813 trillion won, while service revenue excluding device revenue declined 0.5% to 3.1021 trillion won, due to weak performance at subsidiaries. However, consolidated service revenue for the first three quarters totaled 9.2156 trillion won, up 1.6% from a year earlier, demonstrating a continued growth trend.

Mobile revenue declined 0.9% year on year to 1.6867 trillion won. However, revenue from the enterprise infrastructure segment, which includes AIDC, solutions and enterprise connectivity, rose 10.4% to 472.2 billion won, offsetting the slowdown in the telecommunications business. In particular, AIDC revenue increased 27.7% over the same period to 131.7 billion won, driven by growth in colocation and design, build and operate (DBO) businesses.

Solutions revenue rose 3.4% to 124.4 billion won, supported by the expansion of its artificial intelligence contact center (AICC) business. Enterprise connectivity revenue also increased 5.7% to 216.1 billion won, driven by growth in project-based revenue. On a separate basis, capital expenditures (CAPEX) rose 30.1% from the same period last year to 569.8 billion won, reflecting increased investment in AIDC. CAPEX was up 17.2% on a cumulative basis through the third quarter.

LG Uplus is building a DC in Paju, Gyeonggi Province, with a power capacity of 200 megawatts (MW). It plans to bring all four buildings into operation in stages by 2028. The first building, for which customers have already been secured, will have a capacity of 50 MW and is scheduled for completion and the start of operations in June 2027.

LG Uplus CEO Hong Beomsik answers questions from reporters after delivering a presentation on the company’s AI business strategy at a press conference at the InterContinental Barcelona in Spain on March 4, 2026 (local time). Photo by Kang Jinhyeong

CEO Hong Beomsik faces the challenge of strengthening LG Uplus's core telecommunications business while turning its AI services business into a meaningful source of profit. In the telecommunications sector, a key priority is responding to allegations that the company concealed a hacking incident and restoring customer trust. LG Uplus is under police investigation over allegations that it hindered authorities' inquiry by discarding servers suspected of being involved in a security breach or reinstalling their operating systems. The possibility of customer protection measures, including waivers of early termination fees, remains open depending on the investigation's findings and is expected to be a factor affecting the company's future performance.

This content was produced with the assistance of AI translation services.