Q2 2026 LG Uplus Corp Earnings Call

Speaker #1: No.

Speaker #2: 안녕하십니까. LG Uplus 2026년 2분기 실적 발표 컨퍼런스 콜을 시작하겠습니다. 오늘 컨퍼런스 콜은 당사 홈페이지에서 웹캐스팅으로 실시간 청취가 가능합니다. 금일 실적 발표는 약 1시간 동안 진행될 예정이므로, 시간 관계상 투자자별 질문을 2개로 제한드리는 점 미리 양해 부탁드립니다.

Operator: [Foreign language]

Operator: [Foreign language]

Speaker #2: 그럼 LG Uplus의 발표를 시작하겠습니다.

Speaker #3: Good morning and good evening. Thank you all for joining this conference call. Now, we will begin the conference for the fiscal year 2026 second quarter earnings results by LG Uplus.

[Translator]: Good morning and good evening. Thank you all for joining this conference call. Now we will begin the conference of the fiscal year 2026 Q2 earnings results by LG Uplus. This conference will start with a presentation followed by a divisional Q&A session. Our call is being webcasted on our homepage so that you can follow the conference simultaneously. Today's conference call will be presented for one hour. Due to schedule, we would appreciate if questions are limited to two per person. Now we will begin the presentation on LG Uplus' Q2 of fiscal year 2026 earnings results.

[Translator]: Good morning and good evening. Thank you all for joining this conference call. Now we will begin the conference of the fiscal year 2026 Q2 earnings results by LG Uplus. This conference will start with a presentation followed by a divisional Q&A session. Our call is being webcasted on our homepage so that you can follow the conference simultaneously. Today's conference call will be presented for one hour. Due to schedule, we would appreciate if questions are limited to two per person. Now we will begin the presentation on LG Uplus' Q2 of fiscal year 2026 earnings results.

Speaker #3: This conference will start with a presentation followed by a divisional Q&A session. Our call is being webcast on our homepage so that you can follow the conference simultaneously.

Speaker #3: Today's conference call will be presented for 1 hour, and due to scheduling, we would appreciate it if questions are limited to two per person. Now, we will begin the presentation on LG Uplus's second quarter of fiscal year 2026 earnings results.

Speaker #4: 안녕하십니까, LG Uplus IR팀장 성현모입니다. 지금부터 2026년 2분기 LG Uplus 실적 발표를 시작하겠습니다. 금일 회의에 참석해 주신 투자자분들께서는 배포해 드린 2분기 실적 발표 자료를 참조하시기 바라며, 투자자 여러분들의 이해를 돕기 위해 사업별 구분손익과 영업비용 상세는 별도 기준으로 작성되었습니다.

Sung Moo: 안녕하십니까? LG Uplus IR 팀장 성현무입니다. 지금부터 2026년도 2분기 LG Uplus 실적 발표를 시작하겠습니다. 금일 회의에 참석해 주신 투자자분들께서는 배포해 드린 2분기 실적 발표 자료를 참조하시기 바라며, 투자자 여러분들의 이해를 돕기 위해 사업별 구분 수익 및 영업 비용 상세는 별도 기준으로 작성되었습니다. 진행에 앞서서 현재 당사의 모든 향후 전망은 거시경제와 시장 상황 등에 따라 달라질 수 있다는 점을 고려하여 주시기 바라며, 본 회의는 국내외 투자자의 동시 참여로 순차 통역으로 진행됨을 안내드립니다.

Speaker #4: 진행에 앞서서 현재 당사의 모든 향후 전망은 거시경제와 시장 상황 등에 따라 달라질 수 있다는 점을 고려하여 주시기 바라며, 본 회의는 국내외 투자자의 동시 참여로 순차통역으로 진행됨을 안내드립니다.

Sung Hyunmo: [Foreign language]

Speaker #5: Good afternoon. I'm Seonghyeon Mo, head of the IR team at LG Uplus. We would now like to start our second quarter 2026 earnings presentation.

Sung Moo: Good afternoon. I'm Sung Moo, Head of the IR team at LG Uplus. We will now like to start our Q2 2026 earnings presentation. For those of you joining, please refer to the presentation deck and note that for the benefit of ease of comparison, revenue breakdown and operating expense are on a standalone basis. Also, be reminded that all of the projections made today may change, subject to macroeconomic factors and the market backdrop. We will also be providing consecutive interpretation for the benefit of our overseas investors.

[Translator]: Good afternoon. I'm Sung Hyunmo , Head of the IR team at LG Uplus. We will now like to start our Q2 2026 earnings presentation. For those of you joining, please refer to the presentation deck and note that for the benefit of ease of comparison, revenue breakdown and operating expense are on a standalone basis. Also, be reminded that all of the projections made today may change, subject to macroeconomic factors and the market backdrop. We will also be providing consecutive interpretation for the benefit of our overseas investors.

Speaker #5: For those of you joining, please refer to the presentation deck, and note that, for ease of comparison, the revenue breakdown and operating expenses are presented on a standalone basis.

Speaker #5: Also, we remind you that all of the projections made today may change, subject to macroeconomic factors and the market backdrop. We will also be providing consecutive interpretation for the benefit of our overseas investors.

Speaker #4: 금일 실적 발표에는 당사의 CFO이신 여명희 님을 비롯하여 CSO 케빈 존 님, AI R&D 센터장 전병기 님, 모바일 디지털 사업 그룹장 강재녹 님, 미디어 사업 담당 오인호 님, 기업 AI 사업 담당 정영우 님, 대외 협력 담당 박경중 님, 금융 담당 이연규 님, 회계 담당 조현철 님이 참석하였으며, 2분기 성과 발표에 이어 투자자 여러분들의 질의에 대한 Q&A 방식으로 진행될 예정입니다.

Sung Moo: 금일 실적 발표에는 당사의 CFO이신 여명희 님을 비롯하여 CSO 케빈 조 님, AI R&D 센터장 전병기 님, 모바일 디지털 사업 그룹장 강진욱 님, 미디어 사업 담당 오인호 님, 기업 AI 사업 담당 정영훈 님, 대외협력 담당 박경준 님, 금융 담당 이현규 님, 회계 담당 조현철 님이 참석하였으며, 2분기 성과 발표에 이어 투자자 여러분들의 질의에 대한 Q&A 방식으로 진행될 예정입니다.

Sung Hyunmo: [Foreign language]

Speaker #5: Today, I am joined by our CFO, Myunghee Yeo; CSO, Kevin Jo; Head of AI R&D Center, Jeon Byung-gi; Head of Mobile and Digital Group, Jin-wook Kang; Media Business Lead, Oh In-ho; Enterprise AI Business Lead, Jeong Yong-hun; Public Relations Lead, Park Kyung-jung; Head of Finance Department, Lee Hong-gyu; and Head of Accounting Department, Cho Hyun-cha.

Sung Moo: Today I am joined by our CFO, Yeo Myung-hee, CSO, Kevin Cho, Head of AI R&D Center, Jeon Byung-ki, Head of Mobile and Digital Group, Kang Jin-wook, Media Business Lead, Oh In-ho, Enterprise AI Business Lead, Jung Yong-hoon, Public Relations Lead, Park Kyeong-jung, Head of Finance Department, Lee Hyunggyu, and Head of Accounting Department, Cho Hyun-chul. We will begin with the opening presentation of the company's Q2 earnings. We'll move on to Q&A.

[Translator]: Today I am joined by our CFO, Yeo Myung-hee, CSO, Kevin Cho, Head of AI R&D Center, Jeon Byung-ki, Head of Mobile and Digital Group, Kang Jin-wook, Media Business Lead, Oh In-ho, Enterprise AI Business Lead, Jung Yong-hoon, Public Relations Lead, Park Kyeong-jung, Head of Finance Department, Lee Hyunggyu, and Head of Accounting Department, Cho Hyun-chul. We will begin with the opening presentation of the company's Q2 earnings. We'll move on to Q&A.

Speaker #5: We will begin with the opening presentation on the company's second quarter earnings. Then, we'll move on to Q&A.

Sung Moo: First, Yeo Myung-hee, CFO, will present the business and financial performance for the Q2 of 2026.

Speaker #4: 그럼 먼저 당사의 CFO이신 여명희 부사장께서 2026년 2분기 경영 성과와 재무 실적에 대해 발표해 주시겠습니다.

Sung Hyunmo: [Foreign language]

Sung Moo: With that said, I now invite our CFO Yeo Myung-hee, who will present on the business and financial performance for Q2 2026. Good afternoon. This is CFO Yeo Myung-hee. I would like to thank the analysts and investors for joining our Q2 2026 earnings call. During the second quarter, we at LG Uplus took preemptive measures against changing market environment in tandem with AI-driven industrial transformation, focusing our capacity on executing and finding the optimal business direction for future growth. We thus accelerated the timeline for Paju AI DC build-out in order to meet surging data center demand. Although it's not easy to precisely predict demand for GPU-based AI, we already have in place AI DC pipeline, which will scale in phases, and that which can flexibly respond to changing demand.

[Translator]: With that said, I now invite our CFO Yeo Myung-hee, who will present on the business and financial performance for Q2 2026. Good afternoon. This is CFO Yeo Myung-hee. I would like to thank the analysts and investors for joining our Q2 2026 earnings call. During the second quarter, we at LG Uplus took preemptive measures against changing market environment in tandem with AI-driven industrial transformation, focusing our capacity on executing and finding the optimal business direction for future growth. We thus accelerated the timeline for Paju AI DC build-out in order to meet surging data center demand. Although it's not easy to precisely predict demand for GPU-based AI, we already have in place AI DC pipeline, which will scale in phases, and that which can flexibly respond to changing demand.

Speaker #5: With that said, I now invite our CFO, Myunghee Yeo, who will present on the business and financial performance for the second quarter of 2026.

Speaker #6: 안녕하십니까, CFO 여명희입니다. 2026년 2분기 LG Uplus 실적 발표 컨퍼런스 콜에 참석해 주신 애널리스트 및 투자자 여러분께 감사드립니다.

Speaker #5: Good afternoon. This is CFO Myunghee Yeo. I would like to thank the analysts and investors for joining our second quarter 2026 earnings call.

Speaker #6: LG Uplus는 지난 2분기 AI 중심의 산업 변화에 발맞추어, 시장 환경 변화에 선제적으로 대응하고 미래 성장을 위한 최적의 사업 방향을 모색하고 실행하는 데 역량을 집중하였습니다.

Speaker #5: Now, during the second quarter, we at LG Uplus, to preemptive measures against changing market environment, in tandem with AI-driven industrial transformation, focusing our capacity on executing and finding the optimal business direction for future growth.

Speaker #6: 우선, 급증하는 데이터 센터 수요에 대응하기 위해 파주 AIDC 구축 일정을 앞당겼습니다. 현재 GPU 기반의 AI 수요를 정확히 예측하기는 쉽지 않지만, 당사는 수요 변화에 탄력적으로 대응할 수 있는 단계적이고 확장 가능한 AIDC 파이프라인을 확보하고 있습니다.

Speaker #6: 이를 바탕으로 빅테크 중심의 AI 인프라 수요를 선제적으로 확보하고, 투자 효율성과 재무 건전성을 유지하며 중·장기 성장 기반을 제고해 가고 있습니다.

Speaker #5: We accelerated the timeline for the Paju AIDC build-out in order to meet surging data-centered demand. Although it's not easy to precisely predict demand for GPU-based AI, we already have in place an AIDC pipeline, which will scale in phases, and which can flexibly respond to changing demand.

Speaker #5: We will move ahead and tap into AI infrastructure demand from the big tech companies, fortify bases for mid- to longer-term growth, and maintain investment efficiency while attaining financial soundness.

Sung Moo: We will move ahead and tap into AI infrastructure demand from the big tech companies and fortify bases for mid-to-longer-term growth whilst maintaining investment efficiency and attaining financial soundness. In AI services, we've made enhancements to AI voice call assistant and information security. We are also pushing for global expansion, taking ixi-O equipped with powerful features, and in cooperation with Ericsson, we are beefing up competitiveness of voice-based AI services, combining the network and AI capabilities of the respective companies. We also acquired PAGO Networks, specializing in MDR solutions, in order to enhance internal cybersecurity capacity. As we internalize threat detection and analytical skills, we plan on strengthening our competitiveness in cybersecurity business for our enterprise customers. Lastly, through AX innovation, we are making a shift towards AI-powered workflow.

[Translator]: We will move ahead and tap into AI infrastructure demand from the big tech companies and fortify bases for mid-to-longer-term growth whilst maintaining investment efficiency and attaining financial soundness. In AI services, we've made enhancements to AI voice call assistant and information security. We are also pushing for global expansion, taking ixi-O equipped with powerful features, and in cooperation with Ericsson, we are beefing up competitiveness of voice-based AI services, combining the network and AI capabilities of the respective companies. We also acquired PAGO Networks, specializing in MDR solutions, in order to enhance internal cybersecurity capacity. As we internalize threat detection and analytical skills, we plan on strengthening our competitiveness in cybersecurity business for our enterprise customers. Lastly, through AX innovation, we are making a shift towards AI-powered workflow.

Speaker #6: AI 서비스 분야의 부문에서는 AI 통화 에이전트와 정보 보안 역량을 지속적으로 고도화하고 있습니다. 익시오의 기능 강화와 해외 시장 진출을 추진하고 있으며, 에릭슨과의 협력을 통해 네트워크화된 AI를 결합한 차별화된 보이스 AI 서비스 경쟁력을 확대하고 있습니다.

Speaker #5: In AI services, we've made enhancements to our AI voice call assistant and information security. We are also pushing for global expansion, taking Ixio—equipped with powerful features—and, in cooperation with Ericsson, we are beefing up the competitiveness of voice-based AI services by combining the network and AI capabilities of both companies.

Speaker #6: 또한, 고객 대상 보안 체계를 발전시키고 내부 보안 정보 보안 역량을 높이기 위해 MDR 전문 기업인 파고네트웍스를 인수하였습니다. 위협 탐지, 분석 역량을 내재화하여 전사 보안 시스템을 개선하고, 기업 고객 대상 보안 사업 경쟁력도 강화해 나갈 계획입니다.

Speaker #5: We also acquired Pago Networks, which specializes in MDR solutions, in order to enhance our internal cybersecurity capacity. As we internalize threat detection and analytical skills, we plan to strengthen our competitiveness in the cybersecurity business for our enterprise customers.

Speaker #6: 마지막으로 AX 업무 추진을 통해서 AI 중심의 업무 체계로 전환하고 있습니다. 기존 인력 중심의 업무 방식을 워크플로 기반의 표준화와 AI 에이전트 기반의 자동화로 전환하여 업무 생산성을 높여 나가고 있습니다.

Speaker #6: 엔드 투 엔드 프로세스 통합과 클라우드 중심의 인프라 전환을 통해서 운영 효율화와 보안 대응력을 향상시키고, 전사 AX 실행력도 높여 나갈 계획입니다.

Speaker #5: Lastly, through AX innovation, we are making a shift towards AI-powered workflows. We are seeing productivity gains as we move away from human-centric workflows to automation based on AI agents and workload-based standardization.

Sung Moo: We are seeing productivity gains as we move away from human-centric workflow to automation based on AI agent and workload-based standardization. Through end-to-end process integration and cloud-based infrastructure transformation, we plan to strengthen operational efficiency and security preparedness and enhance executional capacity for enterprise-wide AX transformation. Moving on to Q2 financials. Q2 service revenue on a consolidated basis was KRW 3.1 trillion and KRW 2.9 trillion on a standalone basis, growing 2% and 2.8% year-over-year respectively on momentum from enterprise infrastructure and smart home revenue expansion. Consolidated operating profit was up 13.1% year-on-year, reporting KRW 344.5 billion. This is new quarterly record and even excluding one-time factors, operating profits still exceeded KRW 320 billion, which demonstrate a clear profitability improvement. 연결 기준 당기순이익은 전년 동기 대비 0.3% 증가한 2,177억 원을 기록하였고, EBITDA는 전년 대비 5.9% 성장한 1조 348억 원으로 영업 현금흐름 개선이 이어졌습니다.

[Translator]: We are seeing productivity gains as we move away from human-centric workflow to automation based on AI agent and workload-based standardization. Through end-to-end process integration and cloud-based infrastructure transformation, we plan to strengthen operational efficiency and security preparedness and enhance executional capacity for enterprise-wide AX transformation. Moving on to Q2 financials. Q2 service revenue on a consolidated basis was KRW 3.1 trillion and KRW 2.9 trillion on a standalone basis, growing 2% and 2.8% year-over-year respectively on momentum from enterprise infrastructure and smart home revenue expansion. Consolidated operating profit was up 13.1% year-on-year, reporting KRW 344.5 billion. This is new quarterly record and even excluding one-time factors, operating profits still exceeded KRW 320 billion, which demonstrate a clear profitability improvement.

Speaker #5: Through end-to-end process integration and cloud-based infrastructure transformation, we plan to strengthen operational efficiency and security preparedness, and enhance executional capacity for enterprise-wide AX transformation.

Speaker #6: 그럼 이어서 2026년 2분기 재무 실적에 대해서 말씀드리겠습니다. LG Uplus의 2분기 서비스 수익은 기업 인프라 및 스마트홈 부문의 매출 확대에 기반해, 연결 기준 3.1조 원, 별도 기준 2.9조 원으로 전년 동기 대비 각각 2%, 2.8% 성장하였습니다.

Speaker #5: Moving on to second quarter financials. Q2 service revenue on a consolidated basis was ₩3.1 trillion, and ₩2.9 trillion on a standalone basis, growing 2% and 2.8% year over year, respectively, on momentum from enterprise infrastructure and smart home revenue expansion.

Speaker #6: 연결 영업이익은 전년 대비 13.1% 성장한 3,445억 원을 기록하였습니다. 이는 분기 기준 최대 실적으로, 1회성 요인을 제외하더라도 약 3,200억 원 이상의 영업이익을 달성하며 본질적인 수익성 개선이 뚜렷하게 나타났습니다.

Speaker #5: Consolidated operating profit was up 13.1% year-on-year, reporting 344.5 billion won. This is a new quarterly record, and even excluding one-time factors, operating profit still exceeded 320 billion, which demonstrates a clear profitability improvement.

Speaker #6: 연결 기준 당기 순이익은 전년 동기 대비 0.3% 증가한 2,177억 원을 기록하였고, EBITDA는 전년 대비 5.9% 성장한 1조 348억 원으로 영업 현금 흐름 개선이 이어졌습니다.

Jin-wook Kang: [Foreign language]

Speaker #5: Consolidated net profit was ₩217.7 billion, up 0.3% year on year, while EBITDA grew 5.9% year on year to ₩1.0348 trillion, sustaining an uptrend in operational cash flow.

Sung Moo: Consolidated net profit was KRW 217.7 billion, up 0.3% year-on-year, while EBITDA grew 5.9% year-on-year to KRW 1,034.8 billion, sustaining an uptrend in operational cash flow. 별도 기준 CapEx는 4,778억 원으로 전년 동기 대비 21.5% 증가하였고, 연결 기준 부채 비율은 25년 대비 3% 감소한 114.1%를 기록하며 재무구조가 안정화되었습니다. Standalone CapEx was KRW 477.8 billion, up 21.5% year-on-year, and consolidated debt-to-equity ratio fell 3 percentage points year-to-date, reporting 114.1%, stabilizing the balance sheet.

[Translator]: Consolidated net profit was KRW 217.7 billion, up 0.3% year-on-year, while EBITDA grew 5.9% year-on-year to KRW 1,034.8 billion, sustaining an uptrend in operational cash flow. [Foreign language]. Standalone CapEx was KRW 477.8 billion, up 21.5% year-on-year, and consolidated debt-to-equity ratio fell 3 percentage points year-to-date, reporting 114.1%, stabilizing the balance sheet.

Speaker #6: 별도 기준 Capex는 4,778억 원으로 전년 동기 대비 21.5% 증가하였고, 연결 기준 부채 비율은 '25년 대비 3% 감소한 114.1%를 기록하며 재무 구조가 안정화되었습니다.

Speaker #5: Standalone CAPEX was ₩477.8 billion, up 21.5% year on year, and the consolidated debt-to-equity ratio fell 3 percentage points year to date, reporting at 114.1%, stabilizing the balance sheet.

Speaker #2: 이상으로 경영 성과 및 재무 실적에 대한 보고를 마치고, 다음은 사업 부문별 실적 및 전망에 대한 발표가 있겠습니다.

Sung Moo: 이상으로 경영 성과 및 재무실적에 대한 보고를 마치고 다음은 사업 부문별 실적 및 전망에 대한 발표가 있겠습니다.

Sung Hyunmo: [Foreign language]

Speaker #5: Now, that was the report on our business results and the financial performance. Next, we will hear from each business division on their respective performance and business outlook.

Sung Moo: Now that was the report on our business results and the financial performance. Next, we will hear from each business division on their respective performance and business outlook.

[Translator]: Now that was the report on our business results and the financial performance. Next, we will hear from each business division on their respective performance and business outlook.

Speaker #2: 먼저 모바일 부문입니다. 모바일 디지털사업그룹장 강진욱입니다. 2분기 모바일 서비스 수익은 전년 동기 대비 1.2% 증가한 1조 5,959억 원을 기록하며 안정적인 성장세를 이어갔습니다.

Jin-wook Kang: 먼저 모바일 부문입니다. 모바일 디지털 사업그룹장 강진욱입니다. 2분기 모바일 서비스 수익은 전년 동기 대비 1.2% 증가한 1조 5,959억 원을 기록하며 안정적인 성장세를 이어갔습니다.

Jin-wook Kang: [Foreign language]

Speaker #5: First is on mobile business, and I'm Jin-wook Kang, Head of the Mobile and Digital Business Group. Second quarter's mobile service revenue increased 1.2% year-on-year, reporting 1,595.9 billion won, sustaining a stable growth trajectory.

Sung Moo: First is on mobile business, and I'm Jin-wook Kang, Head of Mobile and Digital Business Group. Q2's mobile service revenue increased 1.2% year on year, reporting KRW 1,595.9 billion, sustaining stable growth trajectory.

[Translator]: First is on mobile business, and I'm Jin-wook Kang, Head of Mobile and Digital Business Group. Q2's mobile service revenue increased 1.2% year on year, reporting KRW 1,595.9 billion, sustaining stable growth trajectory.

Speaker #2: 전체 모바일 가입 회선 수는 전년 동기 대비 5.2% 확대된 3,146만 7천 회선으로 집계되었습니다. 또한, 5G 핸드셋 가입 회선은 지속적으로 확대되며 5G 보급률은 84.9%까지 상승하였습니다.

Jin-wook Kang: 전체 모바일 가입 회선 수는 전년 동기 대비 5.2% 확대된 31,467,000회선으로 집계되었습니다. 또한 5G 핸드셋 가입 회선은 지속적으로 확대되며 5G 보급률은 84.9%까지 상승하였습니다.

Jin-wook Kang: [Foreign language]

Speaker #5: Total mobile subscription count reached 31,467,000, expanding 5.2% year over year. And with the growing number of 5G handset subscribers, 5G penetration went up to 84.9%.

Sung Moo: Total mobile subscription count reached 31,467,000 to expanding 5.2% year over year. With growing number of 5G handset subscribers, 5G penetration went up to 84.9%.

[Translator]: Total mobile subscription count reached 31,467,000 to expanding 5.2% year over year. With growing number of 5G handset subscribers, 5G penetration went up to 84.9%.

Speaker #2: 2분기 마케팅 비용은 5,721억 원을 기록했습니다. 상각비 영향으로 전년 동기 대비 7.6% 증가하였으나, 전 분기 대비 6.9% 감소하면서 서비스 수익 대비 마케팅 비용 비중은 19.9%를 기록하며 비용 지평의 효율성을 회복했습니다.

Jin-wook Kang: 2분기 마케팅 비용은 5,721억 원을 기록했습니다. 상각비 영향으로 전년 동기 대비 7.6% 증가하였으나 전분기 대비 6.9% 감소하면서 서비스 수익 대비 마케팅 비용 비중은 19.9%를 기록하며 비용 집행의 효율성을 회복했습니다.

Jin-wook Kang: [Foreign language]

Speaker #5: Q2 marketing expense was reported at 572.1 billion won, and because of depreciation, marketing spend increased 7.6% year-over-year but declined 6.9% quarter-over-quarter. As such, we are regaining cost efficiency with marketing spend accounting for 19.9% of total service revenue.

Sung Moo: Q2 Marketing expense reported KRW 572.1 billion. Because of depreciation, marketing spend increased 7.6% but declined 6.9% Q over Q, and as such, regaining cost efficiency with marketing spend accounting for 19.9% of total service revenue.

[Translator]: Q2 Marketing expense reported KRW 572.1 billion. Because of depreciation, marketing spend increased 7.6% but declined 6.9% Q over Q, and as such, regaining cost efficiency with marketing spend accounting for 19.9% of total service revenue.

Speaker #2: LG Uplus는 고객의 요금제 선택 부담을 줄이고 가입 편의를 높이기 위해 심플리 2.0을 선보였습니다. 기존 53종의 5G, LTE 요금제를 18종으로 통합해 상품 구조를 단순화하고, 키즈, 청소년, 청년, 시니어 대상 데이터 추가 제공과 연령 변화에 따른 혜택 자동 전환 등 고객 특성에 맞는 혜택을 별도 신청 없이 적용되도록 개편했습니다.

Jin-wook Kang: LG유플러스는 고객의 요금제 선택 부담을 줄이고 가입 편의를 높이기 위해 Simply 2.0을 선보였습니다. 기존 53종의 5G LTE 요금제를 18종으로 통합해 상품 구조를 단순화하고 키즈, 청소년, 청년, 시니어 대상 데이터 추가 제공과 연령 변화에 따른 혜택 자동 전환 등 고객 특성에 맞는 혜택을 별도 신청 없이 적용되도록 개편했습니다. 이를 통해 고객이 복잡한 요금 조건을 직접 비교하고 혜택을 신청해야 했던 불편을 줄였습니다.

Jin-wook Kang: [Foreign language]

Speaker #2: 이를 통해 고객이 복잡한 요금 조건을 직접 비교하고 혜택을 신청해야 했던 불편을 줄였습니다.

Speaker #5: We also released the Simpli 2.0 rate plan to make it easy for people to choose and subscribe to a plan, and simplified the offering by combining 53 different rate plans for 5G and LTE into 18.

Sung Moo: We also released Simply 2.0 rate plan to make it easy for people to choose and subscribe to the plan, and simplified the offering by combining 53 different rate plans for 5G and LTE into 18. We're also providing additional data capacity to kids, teens, young adults, and seniors, and introduced automatic adjustment in benefits as people grow older, revamping the overall rate scheme so that subscribers can enjoy the benefit without having to apply for different set of benefits. We eliminated inconveniences so that subscribers don't need to compare complex terms and conditions across different plans.

[Translator]: We also released Simply 2.0 rate plan to make it easy for people to choose and subscribe to the plan, and simplified the offering by combining 53 different rate plans for 5G and LTE into 18. We're also providing additional data capacity to kids, teens, young adults, and seniors, and introduced automatic adjustment in benefits as people grow older, revamping the overall rate scheme so that subscribers can enjoy the benefit without having to apply for different set of benefits. We eliminated inconveniences so that subscribers don't need to compare complex terms and conditions across different plans.

Speaker #5: We're also providing additional data capacity to kids, teens, young adults, and seniors, and have introduced automatic adjustment in benefits as people grow older, revamping the overall rate scheme so that subscribers can enjoy the benefits without having to apply for a different set of benefits.

Speaker #5: We eliminated inconveniences so that subscribers don't need to compare complex terms and conditions across different plans.

Speaker #2: 또한, 모바일과 인터넷을 각각 결합한 뒤에 별도로 결합을 신청해야 했던 기존 방식에서 벗어나, 한 번의 신청으로 모바일과 인터넷 가입부터 유무선 결합 할인까지 적용받을 수 있는 올인원 상품을 출시했습니다.

Jin-wook Kang: 또한 모바일과 인터넷을 각각 결합한 뒤에 별도로 결합을 신청해야 했던 기존 방식에서 벗어나 한 번의 신청으로 모바일과 인터넷 가입부터 유무선 결합 할인까지 적용받을 수 있는 All-in-one 상품을 출시했습니다. 가입 절차를 간소화해 복잡한 통신 상품을 보다 쉽고 편리하게 이용할 수 있도록 고객 경험을 개선했습니다.

Jin-wook Kang: [Foreign language]

Speaker #2: 가입 절차를 간소화해, 복잡한 통신 상품을 보다 쉽고 편리하게 이용할 수 있도록 고객 경험을 개선했습니다.

Speaker #5: We also introduced the all-in-one product, enabling a single unified application for mobile internet and bundling discounts, rather than having to apply for bundling after subscribing to mobile and internet separately.

Sung Moo: We also introduced the All-in-one product, enabling single unified application for mobile, internet, and bundling discounts rather than having to apply for bundling after subscribing to mobile and internet separately. By streamlining the subscription process, we improved customer experience for users to help them easily access relatively complex telecom products.

[Translator]: We also introduced the All-in-one product, enabling single unified application for mobile, internet, and bundling discounts rather than having to apply for bundling after subscribing to mobile and internet separately. By streamlining the subscription process, we improved customer experience for users to help them easily access relatively complex telecom products.

Speaker #5: By streamlining the subscription process, we improved the customer experience for users, helping them easily access relatively complex telecom products.

Speaker #2: 휴가철을 앞두고는 AI 통화 서비스 익쇼 로밍 콜을 170개국에서 출시했습니다. 와이파이에 연결하거나 Uplus 로밍 요금제 가입 고객은 별도의 국제 통화 요금 부담 없이 음성 통화를 이용할 수 있으며, 현지 통신사와의 사전 품질 점검을 통해 로밍 환경에서의 통화 안정성도 검증했습니다.

Jin-wook Kang: 휴가철을 앞두고는 AI 통화 서비스 ixi-O 로밍콜을 170개국에서 출시했습니다. 와이파이를 연결하거나 유플러스 로밍 요금제 가입 고객은 별도의 국제 통화 요금 부담 없이 음성 통화를 이용할 수 있으며, 현지 통신사와의 사전 품질 점검을 통해 로밍 환경에서의 통화 안정성도 검증했습니다.

Jin-wook Kang: [Foreign language]

Speaker #5: Also, ahead of the vacation season, we launched the AI voice call service 익쇼 로밍 콜 across 170 countries. Either by connecting to Wi-Fi or, if you are a Uplus roaming subscriber, you can use voice calls without paying international fees.

Sung Moo: Also, ahead of the vacation season, we launched AI voice call service ixi-O Roaming Call across 170 countries. Either by connecting to WiFi or if you are a U+ roaming subscriber, you can use voice calls without paying international fees. We completed validation on roaming call stability through quality inspections with the local telecom operator.

[Translator]: Also, ahead of the vacation season, we launched AI voice call service ixi-O Roaming Call across 170 countries. Either by connecting to WiFi or if you are a U+ roaming subscriber, you can use voice calls without paying international fees. We completed validation on roaming call stability through quality inspections with the local telecom operator.

Speaker #5: We completed validation on roaming call stability through quality inspections with the local telecom operator.

Speaker #2: 한편, LG Uplus는 고객 경험 혁신을 위한 노력의 성과로 2026년 국가 고객 만족도 조사 이동전화 서비스 부문에서 첫 1위를 달성했습니다. 고객 여정 전반에 걸쳐 서비스의 편의성과 안정성을 지속적으로 개선하고, 고객 관점의 상품·서비스 혁신을 추진해 온 점이 높은 평가를 받았습니다.

Jin-wook Kang: 한편 LG Uplus는 고객 경험 혁신을 위한 노력의 성과로 2026년 국가고객만족도(NCSI) 조사, 이동전화 서비스 부문에서 첫 1위를 달성했습니다. 고객 여정 전반에 걸쳐 서비스 이용 편의성과 안정성을 지속적으로 개선하고, 고객 관점의 상품 서비스 혁신을 추진해 온 점이 높은 평가를 받았습니다.

Jin-wook Kang: [Foreign language]

Speaker #5: LG Uplus achieved its first-ever number one ranking in the mobile telecommunications service category of the 2026 NCIS Index, which demonstrates our continued efforts toward scaling up customer experience.

Sung Moo: LG Uplus achieved its first-ever number one ranking in the mobile telecommunication service category of the 2026 NCSI index, which demonstrated our continued effort towards scaling up customer experience. We were recognized for improving convenience and service reliability across the entire customer journey while driving product and service innovation from the perspective of our customers.

[Translator]: LG Uplus achieved its first-ever number one ranking in the mobile telecommunication service category of the 2026 NCSI index, which demonstrated our continued effort towards scaling up customer experience. We were recognized for improving convenience and service reliability across the entire customer journey while driving product and service innovation from the perspective of our customers.

Speaker #5: We were recognized for improving convenience and service reliability across the entire customer journey, while driving product and service innovation from the perspective of our customers.

Speaker #2: 앞으로도 요금제와 가입 구조를 단순화하고, AI 기반 서비스를 확대해 국내 어디서나 쉽고 편리하면서도 안정적인 모바일 이용 경험을 제공하겠습니다.

Jin-wook Kang: 앞으로도 요금제와 가입 구조를 단순화하고 AI 기반 서비스를 확대해 국내 어디서나 쉽고 편리하면서도 안정적인 모바일 이용 경험을 제공하겠습니다.

Jin-wook Kang: [Foreign language]

Speaker #5: We will continue to streamline tariff plans and the subscription process, and scale AI-based services, delivering a mobile experience that is stable and convenient to use from anywhere in Korea or from overseas.

Sung Moo: We will continue to streamline tariff plans and the subscription process and scale AI-based services, delivering mobile experience that is stable and convenient to use from anywhere in Korea or from overseas.

[Translator]: We will continue to streamline tariff plans and the subscription process and scale AI-based services, delivering mobile experience that is stable and convenient to use from anywhere in Korea or from overseas.

Oh In-ho: 다음은 Smart Home입니다. 미디어 사업 담당 오인호입니다.

Oh In-ho: [Foreign language]

Speaker #2: 다음은 스마트홈입니다. 미디어 사업 담당 오인호입니다.

Speaker #5: Next is Smart Home Business, and I am 오인호, in charge of the Media Business.

Sung Moo: Next is Smart Home Business, I am Oh In-ho, in charge of the media business.

[Translator]: Next is Smart Home Business, I am Oh In-ho, in charge of the media business.

Speaker #2: 2분기 스마트홈 수익은 전년 대비 4.3% 성장한 6,638억 원을 기록했습니다. IPTV 수익은 2.1% 성장한 3,377억 원을 기록하였고, 인터넷 수익은 기가인터넷 가입자의 꾸준한 성장에 힘입어 전년 대비 7.6% 성장한 3,251억 원을 기록했습니다.

Oh In-ho: 2분기 Smart Home 수익은 전년 대비 4.3% 성장한 6,638억 원을 기록했습니다. IPTV 수익은 2.1% 성장한 3,377억 원을 기록하였고, 인터넷 수익은 기가 인터넷 가입자의 꾸준한 성장에 힘입어 전년 대비 7.6% 성장한 3,251억 원을 기록했습니다.

Oh In-ho: [Foreign language]

Speaker #5: Smart Home revenue in Q2 grew 4.3% year-on-year, reporting 663.8 billion won. IPTV revenue was up 2.1%, reporting 337.7 billion won, while broadband internet revenue was up 7.6% year-over-year, posting 325.1 billion won, driven by sustained growth from GiGA Internet subscribers.

Sung Moo: Smart Home revenue in Q2 grew 4.3% year-on-year, reporting KRW 663.8 billion. IPTV revenue was up 2.1%, reporting KRW 337.7 billion, while broadband internet revenue was up 7.6% year-over-year, posting KRW 325.1 billion, driven by sustained growth from Giga internet subscribers.

[Translator]: Smart Home revenue in Q2 grew 4.3% year-on-year, reporting KRW 663.8 billion. IPTV revenue was up 2.1%, reporting KRW 337.7 billion, while broadband internet revenue was up 7.6% year-over-year, posting KRW 325.1 billion, driven by sustained growth from Giga internet subscribers.

Speaker #2: 2분기 스마트홈 사업 고객 사업은 고객 페인트 포인트 개선에 초점을 맞춰 상품 경쟁력을 강화하였습니다. 인터넷 100메가 고객들의 데이터 사용량 증가 추세를 반영한 200메가 요금제와 모바일 인터넷 동시 가입 절차를 간소화한 올인원 요금제를 출시하여 고객 선택권과 가입 편의성을 증대하였으며, 이를 통해 고객 만족도 제고와 가입자 확대를 추진하고 있습니다.

Oh In-ho: 2분기 Smart Home 사업은 고객 pain point 개선에 초점을 맞춰 상품 경쟁력을 강화하였습니다. 인터넷 100메가 고객들의 데이터 사용량 증가 추세를 반영한 200메가 요금제와 모바일 인터넷 동시 가입 절차를 간소화한 All-in-one 요금제를 출시하여 고객 선택권과 가입 편의성을 증대하였으며, 이를 통해 고객 만족도 제고와 가입자 확대를 추진하고 있습니다.

Oh In-ho: [Foreign language]

Speaker #5: During the second quarter for the Smart Home Business, we focused on product competitiveness, working on solving customers' pain points. We thus introduced a 200-meg rate plan, catering to the higher data usage by internet subscribers of 100-meg plans.

Sung Moo: During Q2 for Smart Home Business, we focused on product competitiveness, working on solving customers' pain point. We thus introduced 200meg rate plan, catering to the higher data usage by internet subscribers of 100meg plans. We also launched simple All-in-one plan, streamlining the subscription process, combining both mobile and internet, which helped improve customers' choice and convenience. We expect these efforts will translate into higher user satisfaction and subscriber expansion.

[Translator]: During Q2 for Smart Home Business, we focused on product competitiveness, working on solving customers' pain point. We thus introduced 200meg rate plan, catering to the higher data usage by internet subscribers of 100meg plans. We also launched simple All-in-one plan, streamlining the subscription process, combining both mobile and internet, which helped improve customers' choice and convenience. We expect these efforts will translate into higher user satisfaction and subscriber expansion.

Speaker #5: We also launched the Simple all-in-one plan, streamlining the subscription process and combining both mobile and internet services, which helped improve customers' choice and convenience. We expect these efforts will translate into higher user satisfaction and subscriber expansion.

Speaker #2: 또한, 세계 최초로 아이패드에서 IPTV를 시청할 수 있는 U+tv 프리 5 for iPad를 출시하며 차별화된 고객 가치를 제공하였습니다. 출시 이후 TV 프리 가입자가 크게 증가하는 등 긍정적인 시장 반응을 얻고 있으며, 이는 상품 기반의 매출 성장에 기여할 것으로 기대됩니다.

Oh In-ho: 또한 세계 최초로 iPad에서 IPTV를 시청할 수 있는 U+tv free 5 for iPad를 출시하며 차별화된 고객 가치를 제공하였습니다. 출시 이후 tv free 가입자가 크게 증가하는 등 긍정적인 시장 반응을 얻고 있으며, 이는 상품 기반의 매출 성장에 기여할 것으로 기대됩니다.

Oh In-ho: [Foreign language]

Speaker #5: We also released Uplus TV Free 5 for iPad, our first offering of IPTV on the iPad device, delivering unique customer value. The release was met with positive market feedback, with TV Free subscribers surging immediately after the launch, and we expect this will lead to product-driven top-line growth.

Sung Moo: We also released U+tv free 5 for iPad, world first offering of IPTV on the iPad device, delivering unique customer value. The release was met with positive market feedback, with TV free subscribers surging immediately after the launch, and we expect it will lead to product-driven top-line growth.

[Translator]: We also released U+tv free 5 for iPad, world first offering of IPTV on the iPad device, delivering unique customer value. The release was met with positive market feedback, with TV free subscribers surging immediately after the launch, and we expect it will lead to product-driven top-line growth.

Speaker #2: 이러한 고객 중심의 서비스 혁신 성과를 바탕으로 국가고객만족도조사 IPTV 부문에서 5년 연속 1위를 달성했으며, 서비스 품질지수에서는 고객센터 부문 전 산업군 1위에 선정되는 성과를 거두었습니다.

Oh In-ho: 이러한 고객 중심의 서비스 혁신 성과를 바탕으로 국가고객만족도 조사 IPTV 부문에서 5년 연속 1위를 달성했으며, 서비스품질지수에서는 고객센터 부문 전 산업군 1위에 선정되는 성과를 거두었습니다. 이는 차별화된 고객 경험 제공과 고객 응대 품질 향상을 위한 지속적인 노력이 대외적으로 인정받은 결과입니다.

Oh In-ho: [Foreign language]

Speaker #2: 이는 차별화된 고객 경험 제공과 고객 응대 품질 향상을 위한 지속적인 노력이 대외적으로 인정받은 결과입니다.

Speaker #5: Thanks to customer-centered service innovation, we achieved the number one ranking for five consecutive years in the NCSI survey for the IPTV category, and were also recognized as the number one company by the KSQI Index in the customer-centered category across all industries.

Sung Moo: Thanks to customer-centered service innovation, we achieved number-one ranking for five consecutive years in the NCSI survey for the IPTV category and was also recognized as number one company by KSQI index in customer center category across all industries. These outcomes are a testament to our unwavering effort to deliver differentiated customer experience and improve customer service quality.

[Translator]: Thanks to customer-centered service innovation, we achieved number-one ranking for five consecutive years in the NCSI survey for the IPTV category and was also recognized as number one company by KSQI index in customer center category across all industries. These outcomes are a testament to our unwavering effort to deliver differentiated customer experience and improve customer service quality.

Speaker #5: These outcomes are a testament to our unwavering effort to deliver a differentiated customer experience and improve customer service quality.

Speaker #2: 앞으로도 LG Uplus는 고객 니즈 변화에 선제적으로 대응하는 상품과 서비스를 지속 발굴하고, 차별화된 고객 경험 제공과 운영 효율성 제고를 통해 스마트홈 사업의 지속 가능한 성장을 추진해 나가겠습니다.

Oh In-ho: 앞으로도 LG Uplus는 고객 니즈 변화에 선제적으로 대응하는 상품과 서비스를 지속 발굴하고, 차별화된 고객 경험 제공과 운영 효율성 제고를 통해 U+ Smart Home 사업의 지속 가능한 성장을 추진해 나가겠습니다.

Oh In-ho: [Foreign language]

Speaker #5: Moving forward, LG Uplus will continue to identify products and services tailored to the changing needs of our customers preemptively. By offering a distinctive customer experience and enhancing operational efficiencies, we will continue to drive sustainable growth of the Smart Home Business.

Sung Moo: Moving forward, LG Uplus will continue to identify products and services tailored to the changing needs of our customers preemptively. By offering distinctive customer experience and enhancing operational efficiencies, we will continue to drive for sustainable growth of smart home business.

[Translator]: Moving forward, LG Uplus will continue to identify products and services tailored to the changing needs of our customers preemptively. By offering distinctive customer experience and enhancing operational efficiencies, we will continue to drive for sustainable growth of smart home business.

Speaker #2: 다음은 기업 인프라입니다. 기업 AI 사업 담당 정용훈입니다.

Jung Yong-hoon: 다음은 기업 인프라입니다. 기업 AI 사업 담당 정영훈입니다.

Jung Yong-hoon: [Foreign language]

Speaker #5: Next is Enterprise Infrastructure, and I'm Jung Yong-hoon, Enterprise AI Business Lead.

Sung Moo: Next is Enterprise Infrastructure, and I'm Jung Yong-hoon, Enterprise AI Business Lead.

[Translator]: Next is Enterprise Infrastructure, and I'm Jung Yong-hoon, Enterprise AI Business Lead.

Speaker #2: 2분기 기업 인프라 수익은 4,644억 원으로 전년 동기 대비 8.6% 성장하였습니다. 특히 AIDC 매출은 코로케이션 매출 확대로 전년 동기 대비 28.9% 증가하며, 기업 인프라 매출 성장을 견인하였습니다.

Jung Yong-hoon: 2분기 기업 인프라 수익은 4,644억 원으로 전년 동기 대비 8.6% 성장하였습니다. 특히 AIDC 매출은 코로케이션 매출 확대로 전년 동기 대비 28.9% 증가하며, 기업 인프라 매출 성장을 견인하였습니다.

Jung Yong-hoon: [Foreign language]

Speaker #5: Q2 Enterprise Infrastructure revenue was 464.4 billion KRW, up 8.6% year over year. Driven by growth in colocation revenue, AIDC revenue was up 28.9% year on year, placing momentum behind the overall top-line growth.

Sung Moo: Q2 enterprise infrastructure revenue was KRW 464.4 billion, up 8.6% year-over-year. Driven by growth in colocation revenue, AIDC revenue was up 28.9% year-on-year, placing momentum behind the overall top-line growth.

[Translator]: Q2 enterprise infrastructure revenue was KRW 464.4 billion, up 8.6% year-over-year. Driven by growth in colocation revenue, AIDC revenue was up 28.9% year-on-year, placing momentum behind the overall top-line growth.

Speaker #2: AIDC 사업은 타주의 수도권 최대 규모인 200메가와트급 AIDC 센터를 구축하고 있으며, 2027년부터 2028년까지 4개 동을 순차적으로 오픈할 예정입니다.

Jung Yong-hoon: AIDC 사업은 파주에 수도권 최대 규모인 200MW급 AIDC 센터를 구축하고 있으며, 27년부터 28년까지 4개 동을 순차적으로 오픈할 예정입니다.

Jung Yong-hoon: [Foreign language]

Speaker #5: For the AIDC business, we are building a 20-megawatt AI data center in 파주, which is by far the biggest in the metropolitan area, and from 2027 to 2028, we will be opening four data halls sequentially.

Sung Moo: For the AIDC business, we are building 20 MW AI data center in Paju, which is by far the biggest in the metropolitan area. From 2027 to 2028, we will be opening four data halls sequentially.

[Translator]: For the AIDC business, we are building 20 MW AI data center in Paju, which is by far the biggest in the metropolitan area. From 2027 to 2028, we will be opening four data halls sequentially.

Speaker #2: AIDC 시장은 수도권 중심의 추론 서비스용 수요와 지방 중심의 학습 비실시간 추론 수요로 구분되고, 이를 위해 당사는 약 2조 원 규모의 투자를 진행하고 있습니다. 또한 DBO 사업을 통한 추가 캐파 확보와 지방 거점 구축 전략도 병행해 나갈 계획입니다.

Jung Yong-hoon: AIDC 시장은 수도권 중심의 추론 서비스용 수요와 지방 중심의 학습 비실시간 추론 수요로 구분되고, 이를 위해 당사는 약 2조 원 규모의 투자를 진행하고 있습니다. 또한 DBO 사업을 통한 추가 Capa 확보와 지방 거점 구축 전략도 병행해 나갈 계획입니다.

Jung Yong-hoon: [Foreign language]

Speaker #5: For the AIDC market, there is inference and service demand from the metropolitan area, and demand for model training and non-real-time inference from the regional cities.

Sung Moo: For the AIDC market, there is inference and service demand from the metropolitan area, demand for model training and non-real-time inference demand from the regional cities. LG Uplus is making investment worth KRW 2 trillion in size to respond to such demand. Through DBO projects, we will secure additional capacity and build regional basis, which will all form part of our dual-track strategy.

[Translator]: For the AIDC market, there is inference and service demand from the metropolitan area, demand for model training and non-real-time inference demand from the regional cities. LG Uplus is making investment worth KRW 2 trillion in size to respond to such demand. Through DBO projects, we will secure additional capacity and build regional basis, which will all form part of our dual-track strategy.

Speaker #5: LG Uplus is making investments worth 2 trillion won to respond to such demand. Also, through DBO projects, we will secure additional capacity and build regional bases, which will all form part of our dual-track strategy.

Speaker #2: 한편, LG Uplus는 4,000명 규모의 자사 고객센터 운영 경험을 바탕으로, 우리가 AICC의 실제 수요자로서 축적한 현장의 페인포인트와 노하우를 상품에 반영하여 고객에게 제공하는 AICC 솔루션을 지속적으로 고도화하고 있습니다.

Jung Yong-hoon: 한편, LG Uplus는 4,000명 규모의 자체 고객센터 운영 경험을 바탕으로 우리가 AICC의 실제 수요자로서 축적한 현장의 pain point와 노하우를 상품에 반영하여 고객에게 제공하는 AICC Solution을 지속적으로 고도화하고 있습니다.

Jung Yong-hoon: [Foreign language]

Speaker #5: Also, leveraging our operational know-how in running our own customer contact center with 4,000 employees, we're continuously enhancing AICC solutions for our customers by incorporating practical know-how and pain points that we experienced as a user of AICC.

Sung Moo: Leveraging our operational knowhow in running our own customer contact center with 4,000 employees, we're continuously enhancing AICC solution for our customers by incorporating practical knowhow and pain points that we experienced as a user of AICC.

[Translator]: Leveraging our operational knowhow in running our own customer contact center with 4,000 employees, we're continuously enhancing AICC solution for our customers by incorporating practical knowhow and pain points that we experienced as a user of AICC.

Speaker #2: 상반기에는 익시 STT, TTS, 상담 어드바이저, 오토 QA 등 자체 내재화한 상품을 금융권 중심의 구축형 사업에 적용하였으며, AICC 도입이 활발한 금융권 고객을 중심으로 레퍼런스를 확보하고 시장 인지도를 확대해 왔습니다.

Jung Yong-hoon: 상반기에는 ixi, STT, TTS, 상담 Advisor, Auto QA 등 자체 내재화한 상품을 금융권 중심의 구축형 사업에 적용하였으며, AICC 도입이 활발한 금융권 고객을 중심으로 레퍼런스를 확보하고 시장 인지도를 확대해 왔습니다.

Jung Yong-hoon: [Foreign language]

Speaker #5: During the first half, we brought internally sourced products such as ICSI STT and TTS, Consult Advisor, and Auto QA to on-prem business, particularly for the financial industry, and have gained reference sites and expanded market awareness, mostly from financial sector customers who are actively adopting AI contact centers.

Sung Moo: During H1, we brought internally sourced products such as ixi, STT, and TTS, Consult Advisor, and Auto QA to on-prem business, particularly for the financial industry, and have gained reference sites and expanded market awareness mostly from financial sector customers who are actively adopting AI contact centers.

[Translator]: During H1, we brought internally sourced products such as ixi, STT, and TTS, Consult Advisor, and Auto QA to on-prem business, particularly for the financial industry, and have gained reference sites and expanded market awareness mostly from financial sector customers who are actively adopting AI contact centers.

Speaker #2: 하반기에는 LLM 기반 콜봇, 챗봇, VOC 인사이트 도출 등으로 상품 라인업을 확대하여 실제 이용자 관점에서 고객의 페인포인트를 해결하는 AICC 사업 경쟁력을 더욱 강화해 나가겠습니다.

Jung Yong-hoon: 하반기에는 LLM 기반 call bot, chatbot, VOC Insight 도출 등으로 상품 라인업을 확대하여 실제 이용자 관점에서 고객의 pain point를 해결하는 AICC 사업 경쟁력을 더욱 강화해 나가겠습니다.

Jung Yong-hoon: [Foreign language]

Speaker #5: In the second half of the year, we plan to expand the product lineup, including LLM-based callbots, chatbots, and a VOC insight generator, so that we can solve customers' pain points, leveraging our advantage as users ourselves, to further build upon our AICC competitiveness.

Sung Moo: In H2 of the year, we plan to expand the product lineup, including LLM-based call bots, chatbots, and VOC Insight generator, so that we can solve customers' pain point, leveraging our advantage as the users ourselves, so as to further build upon our AICC competitiveness.

[Translator]: In H2 of the year, we plan to expand the product lineup, including LLM-based call bots, chatbots, and VOC Insight generator, so that we can solve customers' pain point, leveraging our advantage as the users ourselves, so as to further build upon our AICC competitiveness.

Speaker #2: 앞으로도 기업 인프라 사업은 파주 AIDC를 비롯한 데이터센터 구축 및 고객 확보를 통해 성장 기반을 강화하는 한편, 내재화된 AICC 상품 경쟁력을 바탕으로 AI 기반 신사업의 실질적인 성과 창출을 가속화해 나가겠습니다.

Jung Yong-hoon: 앞으로도 기업 인프라 사업은 파주 AIDC를 비롯한 데이터센터 구축 및 고객 확보를 통해 성장 기반을 강화하는 한편, 내재화된 AICC 상품 경쟁력을 바탕으로 AI 기반 신사업의 실질적인 성과 창출을 가속화해 나가겠습니다.

Jung Yong-hoon: [Foreign language]

Speaker #5: In the B2B infrastructure business, we will continue to solidify growth momentum by building data centers, including 파주 AIDC, and by onboarding customers. Supported by the competitive edge we have in AICC products and solutions, which are fully in-sourced, we will speed up the delivery of tangible results from new AI-driven business endeavors.

Sung Moo: In B2B infrastructure business, we will continue to solidify growth momentum by building data centers, including Paju AIDC, and by onboarding customers. Supported by competitive edge we have in AICC product and solutions, which is fully insourced, we will speed up delivery of tangible results from new AI-driven business endeavors.

[Translator]: In B2B infrastructure business, we will continue to solidify growth momentum by building data centers, including Paju AIDC, and by onboarding customers. Supported by competitive edge we have in AICC product and solutions, which is fully insourced, we will speed up delivery of tangible results from new AI-driven business endeavors.

Speaker #2: 이상으로 사업별 실적 발표를 마치고, 하반기 전망에 대한 CFO 말씀이 있겠습니다.

Sung Moo: 이상으로 사업별 실적 발표를 마치고 하반기 전망에 대한 CFO 말씀이 있겠습니다.

Sung Hyunmo: [Foreign language]

Speaker #5: That completes the business highlights, and I will now invite back our CFO, who will briefly run through our second half outlook.

Sung Moo: That completes the business highlights, and I will now invite back our CFO, who will briefly run through our H2 outlook.

[Translator]: That completes the business highlights, and I will now invite back our CFO, who will briefly run through our H2 outlook.

Speaker #3: 최근 AI 기술과 산업 환경이 급변함에 따라 이에 대한 대응 속도가 기업의 미래 경쟁력을 좌우할 것으로 판단하고 있습니다. LG Uplus는 AI 확산이 가져올 변화를 새로운 성장 기회로 연결하고, 전사적 AX를 통해 운영 효율화와 수익성을 제고함으로써 성장 기반을 더욱 강화하겠습니다.

Yeo Myung-hee: 최근 AI 기술과 산업 환경이 급변함에 따라 이에 대한 대응 속도가 기업의 미래 경쟁력을 좌우할 것으로 판단하고 있습니다. LG Uplus는 AI 확산이 가져올 변화를 새로운 성장 기회로 연결하고, 전사적 AX를 통해서 운영 효율화와 수익성을 제고함으로써 성장 기반을 더욱 강화하겠습니다.

Yeo Myung-hee: [Foreign language]

Speaker #5: With changes happening around AI technology and the industry, we believe the speed of response will determine a company's future competitive edge. We at LG Uplus will connect the changes brought on by the spread of AI to new opportunities for growth, and through AX implementation across the entire enterprise, we will drive operational efficiency and profitability so as to further solidify our basis for growth.

Yeo Myung-hee: With changes happening around AI technology and the industry, we believe the speed of response will determine a company's future competitive edge. We at LG Uplus will connect the changes brought on by the spread of AI to new opportunities for growth, and through AX implementation across the entire enterprise, we will drive operational efficiency and profitability so as to further solidify basis for growth.

[Translator]: With changes happening around AI technology and the industry, we believe the speed of response will determine a company's future competitive edge. We at LG Uplus will connect the changes brought on by the spread of AI to new opportunities for growth, and through AX implementation across the entire enterprise, we will drive operational efficiency and profitability so as to further solidify basis for growth.

Speaker #3: 주주 환원과 관련하여 당사는 7월 말 이사회 결의를 통해 중간 배당과 자기주식 매입을 결정하고, 이를 공시하였습니다. 상반기 실적 개선에 따른 성과를 공유하기 위한 취지에서 중간 배당을 전년 대비 8% 상향한 주당 270원으로 결정하였습니다.

Yeo Myung-hee: 주주환원과 관련하여 당사는 7월 말 이사회의 결의를 통해서 중간배당과 자기 주식 매입을 결정하고 이를 공시하였습니다. 상반기 실적 개선에 따른 성과를 공유하기 위한 취지에서 중간배당을 전년 대비 8% 상향한 주당 270원으로 결정하였습니다.

Yeo Myung-hee: [Foreign language]

Speaker #5: Regarding shareholder return, the BOD approved the resolution on interim dividend and share buyback at the end of July, and made disclosures on this decision. In the spirit of sharing good performance results from the first half earnings improvement, interim dividend has been set at 271 per share, which is an increase of 8% versus last year.

Yeo Myung-hee: Regarding shareholder return, the BOD approved the resolution on interim dividend and share buyback end of July and made disclosures on this decision. In the spirit of sharing good performance results from the H1 earnings improvement, interim dividend has been set at KRW 270 per share, which is an increase of 8% versus last year.

[Translator]: Regarding shareholder return, the BOD approved the resolution on interim dividend and share buyback end of July and made disclosures on this decision. In the spirit of sharing good performance results from the H1 earnings improvement, interim dividend has been set at KRW 270 per share, which is an increase of 8% versus last year.

Speaker #3: 아울러, 개선된 수익성과 현금 창출 결과를 바탕으로 기업 가치 제고 계획에 따른 주주 환원 확대 기조를 이어가고자, 자기주식 매입 규모를 전년 대비 확대한 900억 원으로 결정하였습니다.

Yeo Myung-hee: 아울러 개선된 수익성과 현금 창출 결과를 바탕으로 기업 가치 제고 계획에 따른 주주환원 확대 기조를 이어가고자 자기 주식 매입 규모를 전년 대비 확대한 900억 원으로 결정하였습니다. 매입한 자기 주식은 소각을 전제로 하며, 이를 통해서 주당 가치를 높이고 주주환원의 실효성을 강화하여 주주가치 제고 의지를 지속적으로 실천해 나가고자 합니다.

Yeo Myung-hee: [Foreign language]

Speaker #3: 매입한 자기주식은 소각을 전제로 하며, 이를 통해서 주당 가치를 높이고 주주 환원의 실효성을 강화하여 주주 가치 제고 의지를 지속적으로 실천해 나가고자 합니다.

Speaker #5: Also, based on enhanced profitability and cash generation, and the commitment to progressive shareholder return under our corporate value enhancement plan, there will be a share buyback of KRW 90 billion, which is bigger than last year.

Yeo Myung-hee: Also, based on enhanced profitability and cash generation and the commitment to progressive shareholder return under our corporate value enhancement plan, there will be a share buyback of KRW 90 billion, which is bigger than last year. Buyback is premised on cancellation of the same shares, which will support higher value per share and ensure effectiveness of our shareholder return policy, in line with the company's commitment towards shareholder value enhancement.

[Translator]: Also, based on enhanced profitability and cash generation and the commitment to progressive shareholder return under our corporate value enhancement plan, there will be a share buyback of KRW 90 billion, which is bigger than last year. Buyback is premised on cancellation of the same shares, which will support higher value per share and ensure effectiveness of our shareholder return policy, in line with the company's commitment towards shareholder value enhancement.

Speaker #5: Buyback is premised on the cancellation of the same shares, which will support higher value per share and ensure the effectiveness of our shareholder return policy, in line with the company's commitment towards shareholder value enhancement.

Speaker #3: LG Uplus는 앞으로도 미래 성장을 위한 투자와 재무 건전성, 그리고 주주 환원과의 균형을 유지하면서 기업 가치 제고에 최선을 다하겠습니다. 또한, 투명한 소통을 통해서 경영 성과를 주주 여러분과 지속적으로 공유하며 신뢰를 더욱 강화해 나가겠습니다.

Yeo Myung-hee: LG Uplus는 앞으로도 미래 성장을 위한 투자와 재무 건전성, 그리고 주주 환원과의 균형을 유지하면서 기업 가치 제고에 최선을 다하겠습니다. 또한 투명한 소통을 통해서 경영 성과를 주주 여러분과 지속적으로 공유하며 신뢰를 더욱 강화해 나가겠습니다. 감사합니다. LG Uplus will continue to maintain a good balance between investment for future growth, financial soundness, and shareholder value. We will also continue to engage with shareholders through transparent communications of our business results so as to gain stronger confidence from the market. Thank you.

Yeo Myung-hee: [Foreign language]

Speaker #3: 감사합니다.

Speaker #5: LG Uplus will continue to maintain a good balance between investment for future growth, financial soundness, and shareholder value. We will also continue to engage with shareholders through transparent communication of our business results, so as to gain stronger confidence from the market.

[Translator]: LG Uplus will continue to maintain a good balance between investment for future growth, financial soundness, and shareholder value. We will also continue to engage with shareholders through transparent communications of our business results so as to gain stronger confidence from the market. Thank you.

Speaker #5: Thank you.

Speaker #2: 이상으로 실적 보고를 마치고, 다음은 투자자 여러분의 질문을 받도록 하겠습니다.

Sung Moo: 이상으로 실적 보고를 마치고 다음은 투자자 여러분의 질문을 받도록 하겠습니다.

Sung Hyunmo: [Foreign language]

Speaker #5: This ends the presentation on the earnings. We will now move on to the Q&A session.

Sung Moo: This ends the presentation on the earnings. We now move on to Q&A.

[Translator]: This ends the presentation on the earnings. We now move on to Q&A.

Speaker #4: 지금부터 질의응답을 시작하겠습니다. 질문을 하실 분은 전화기 버튼에 별표(*)와 1번을 누르시기 바랍니다. 질문을 취소하시려면 별표(*)와 2번을 누르시면 됩니다.

Operator: 지금부터 질의응답을 시작하겠습니다. 질문을 하실 분은 전화기 버튼에 별표와 1번을 누르시기 바랍니다. 질문을 취소하시려면 별표와 2번을 누르시면 됩니다. Now Q&A session will begin. Please press star one, that is star and one, if you have any questions. Questions will be taken according to the order you have pressed the number star one. For cancellation, please press star two, that is star and two on your phone. 처음으로 질문해 주실 분은 한국투자증권의 김정찬 님입니다. The first question will be provided by Jongchan Kim from Korea Investment & Securities. Please go ahead with your question.

Operator: [Foreign language]

Speaker #1: Now the Q&A session will begin. Please press star 1—that is, star and 1—if you have any questions. Questions will be taken in the order you have pressed star 1.

[Translator]: Now Q&A session will begin. Please press star one, that is star and one, if you have any questions. Questions will be taken according to the order you have pressed the number star one. For cancellation, please press star two, that is star and two on your phone. [Foreign language].

Speaker #1: For cancellation, please press star 2—that is, star and 2 on your phone.

Speaker #4: 처음으로 질문해 주실 분은 한국투자증권의 김정찬 님입니다.

Speaker #1: The first question will be provided by Jeonghan Kim from Korea Investment & Securities. Please go ahead with your question.

[Translator]: The first question will be provided by Jongchan Kim from Korea Investment & Securities. Please go ahead with your question.

Speaker #3: 네, 안녕하세요. 한국투자증권 김정찬입니다. 질문 기회 주셔서 감사합니다. 두 가지 질문 드리겠습니다. 우선, AIDC 관련 질문입니다. AIDC 투자 과정에서의 재무 구조 영향과 자금 조달에 대한 별도의 계획이 있으신지 궁금하고요.

Kim Jongchan: 네, 안녕하세요. 한국투자증권 김정찬입니다. 질문 기회 주셔서 감사합니다. 두 가지 질문드리겠습니다. 우선 AIDC 관련 질문입니다. AIDC 투자 과정에서의 재무구조 영향과 자금 조달에 대한 별도의 계획이 있으신지 궁금하고요. 그리고 파주 등 신규 AIDC 운영 시에 저희가 기존에 해오고 있던 DC 대비 수익성 측면에서 차이가 있는지 말씀 부탁드립니다. 그리고 두 번째로는 연간 가이던스 그리고 중장기 주주 환원 방향성에 대해서 업데이트 주시면 감사하겠습니다. Thank you for taking my question. I am Kim Jongchan from KIS. I would like to ask you two questions. First, I would like to gain some insight as to the impact that your AIDC investment will have on your financial position. And do you have plans to further finance for that investment? And also compared to your existing data centers, the new AIDC, including the Paju AIDC, is there any difference in terms of the margin or the profitability? My second question relates to your annual guidance.

Kim Jeong-chan: [Foreign language]

Speaker #3: 그리고 파주 등 신규 AIDC 운영 시에 저희가 기존에 해오고 있던 DC 대비 수익성 측면에서 차이가 있는지 말씀 부탁드립니다. 그리고 두 번째로는 연간 가이던스, 그리고 중장기 주주 환원 방향성에 대해서 업데이트 주시면 감사하겠습니다.

Speaker #5: Thank you for taking my question. I am Kim Jeongchan from KIS. I would like to ask you two questions. First, I would like to gain some insight as to the impact that your AIDC investment will have on your financial position, and do you have plans to further finance that investment?

[Translator]: Thank you for taking my question. I am Kim Jongchan from KIS. I would like to ask you two questions. First, I would like to gain some insight as to the impact that your AIDC investment will have on your financial position. And do you have plans to further finance for that investment? And also compared to your existing data centers, the new AIDC, including the Paju AIDC, is there any difference in terms of the margin or the profitability? My second question relates to your annual guidance.

Speaker #5: And also, compared to your existing data centers, is there any difference in terms of margin or profitability with the new AIDC, including the Paju AIDC?

Speaker #5: My second question relates to your annual guidance. Will there be any changes to the direction in terms of your shareholder return policy going forward?

Kim Jongchan: Will there be any changes to the direction in terms of your shareholder return policy going forward?

[Translator]: Will there be any changes to the direction in terms of your shareholder return policy going forward?

Speaker #3: 네, 질문 감사드립니다. 첫 번째 질문하신 AIDC 투자와 재무 구조 조달 방안에 대해서는 제가 말씀을 드리고, 그리고 연간 가이던스라든지 향후 주주 환원 방향성은 제가 말씀드리겠습니다. 나머지 파주 수익성에 대해서는 사업부서에서 설명드리도록 하겠습니다.

Yeo Myung-hee: 질문 감사드립니다. 첫 번째 질문하신 AIDC 투자와 재무구조 조달 방안에 대해서는 제가 말씀을 드리고, 그리고 연간 가이던스라든지 향후 주주 환원 방향성은 제가 말씀드리고 나머지 파주 수익성에 대해서는 사업부에서 설명드리도록 하겠습니다. 저희가 2026년도에 CapEx는 AIDC 투자 확대를 통해서 전년 대비 증가할 것으로 예상하고 있습니다. 그러나 이는 EBITDA 범위 내에서 기평 기조를 유지하며, free cash flow를 안정적으로 확보하고 있습니다. 그래서 AIDC 사업은 자체 센터 외에도 임차라든지 DBO 등 Asset light한 모델을 병행해 가면서 자본의 효율성을 높이고 현금 흐름 부담을 완화하고 있습니다. 그래서 AIDC는 별도의 외부 자금 조달 없이 저희가 제시한 기업 가치 제고 계획을 통해서 제시한 중장기 목표 범위 내에서 유지하고자 합니다. 다만 향후에 AIDC 시장 상황의 변동에 따라서 당사의 투자라든지 재무구조 변동 목표가 변동될 시에는 즉시 시장과 소통하도록 하겠습니다. Yes, this is the CFO speaking.

Yeo Myung-hee: [Foreign language]

Speaker #3: 저희가 2026년도에 CAPEX는 AIDC 투자 확대를 통해서 전년 대비 좀 증가할 것으로 예상을 하고 있습니다. 그러나 이는 EBITDA 범위 내에서 집행 기조를 유지하며, pre-cash flow를 안정적으로 확보하고 있습니다.

Speaker #3: 그래서 AIDC 사업은 자체 센터 외에도 인차라든지 DBO 등 에셋 라이트한 모델을 병행해 가면서 자본의 효율성을 높이고, 현금 흐름 부담을 완화하고 있습니다. 그래서 AIDC 투자는 별도의 외부 자금 조달 없이, 저희가 제시한 기업 가치 제고 계획을 통해 제시한 중장기 목표 범위 내에서 유지하고자 합니다.

Speaker #3: 다만, 향후에 AIDC 시장 상황을 반영해 변동이 있을 경우, 당사의 투자라든지 재무 구조 변동 목표가 변동될 시에는 즉시 시장과 소통하도록 하겠습니다.

Speaker #5: Yes, this is the CFO speaking. I will respond to your question on the AIDC investment, its impact on our financial position, and whether we have any additional plans to finance that investment.

Yeo Myung-hee: Yes, this is the CFO speaking.

Yeo Myung-hee: I will respond to your question on AIDC investment having impact on our financial position and whether we have any additional plans to finance for that investment. I would also like to then talk about the guidance as well as shareholder return policy. In terms of the specific questions regarding Paju AIDC, I will hand it over to our business lead who will be answering that question. If you look at 2026 CapEx on the back of expanded investment into AIDC, yes, there is going to be an year-over-year increase, but it will still be within the amount of our EBIT scope. We also have in place a quite steady free cash flow position.

[Translator]: I will respond to your question on AIDC investment having impact on our financial position and whether we have any additional plans to finance for that investment. I would also like to then talk about the guidance as well as shareholder return policy. In terms of the specific questions regarding Paju AIDC, I will hand it over to our business lead who will be answering that question. If you look at 2026 CapEx on the back of expanded investment into AIDC, yes, there is going to be an year-over-year increase, but it will still be within the amount of our EBIT scope. We also have in place a quite steady free cash flow position.

Speaker #5: I would also like to then talk about the guidance as well as the shareholder return policy, and, in terms of the specific questions regarding Paju AIDC.

Speaker #5: I will hand it over to our business lead, who will be answering that question. So, if you look at 2026 CAPEX, on the back of expanded investment into AIDC, yes, there is going to be a year-over-year increase, but it will still be within the amount of our EBITDA scope, and we also have in place a quite steady free cash flow position.

Speaker #5: And aside from our AIDC business, we also have the asset-light model, including the leasing model as well as the DBO model, which is alleviating the cash pressures and also helping us leverage capital efficiency.

Yeo Myung-hee: Aside from our AIDC business, we also have the asset-light model, including the leasing model as well as the DBO model, which is alleviating the cash pressures and also helping us leverage capital efficiency. When it comes to AIDC investments, there will not be a need for us to raise capital externally as under our corporate value enhancement plan, it will be well within the mid to longer term financial position targets that we have. Having said that, depending on how the AI market actually plays out going forward, there may be, and if there is, and when and if there is any change to our financial position related targets or investment plans, we will come back immediately to the market to communicate those changes.

[Translator]: Aside from our AIDC business, we also have the asset-light model, including the leasing model as well as the DBO model, which is alleviating the cash pressures and also helping us leverage capital efficiency. When it comes to AIDC investments, there will not be a need for us to raise capital externally as under our corporate value enhancement plan, it will be well within the mid to longer term financial position targets that we have. Having said that, depending on how the AI market actually plays out going forward, there may be, and if there is, and when and if there is any change to our financial position related targets or investment plans, we will come back immediately to the market to communicate those changes.

Speaker #5: So, when it comes to AIDC investments, there will not be a need for us to raise capital externally, as under our corporate value enhancement plan, it will be well within the mid- to longer-term financial position target that we have.

Speaker #5: Having said that, depending on how the AI market actually plays out going forward, there may be and if there is, when and if there is any change to our financial position-related targets or our investment plans, we will come back immediately to the market to communicate those changes.

Speaker #2: 예, 파주를 비롯한 신규 데이터 센터 수익성 관련해서는 AI 사업 담당 정영훈이 말씀드리겠습니다. 파주 AIDC를 비롯한 신규 데이터 센터는 기존 센터 운영 대비해서 수익성 개선이 가능할 것으로 기대하고 있습니다.

Jung Yong-hoon: 네, 파주를 비롯한 신규 데이터센터 수익성 관련해서는 AI 사업 담당 정영훈이 말씀드리겠습니다. 파주 AIDC를 비롯한 신규 데이터센터는 기존 센터 운영 대비해서 수익성 개선이 가능할 것으로 기대를 하고 있습니다. 데이터센터 매출은 크게 보면 상면료와 전기료로 구분이 되는데 상면료는 AI 서버 운영 및 안정적인 운영을 위해서 액체 냉각 또 전력 인프라 등의 투자가 증가한 만큼 판매 단가가 높게 형성될 것으로 예상하고 있습니다. 또한 최근 공급 대비 수요가 매우 높은 상황으로 상면 단가가 지속 높아지고 있는 추세입니다. 전기료는 통상 사용한 만큼 종량제 과금인데 AI 이용 유형에 따라서 가동률 또한 상대적으로 높아져서 전기료 총액도 증가하고 있는 추세라고 말씀드리겠습니다.

Jung Yong-hoon: [Foreign language]

Speaker #2: 데이터 센터 매출은 크게 보면 상면료와 전기료로 구분이 되는데, 상면료는 AI 서버 운영 및 안정적인 운영을 위해 액체냉각, 전력 인프라 등의 투자가 증가한 만큼 판매 단가가 높게 형성될 것으로 예상하고 있습니다.

Speaker #2: 또한 최근 공급 대비 수요가 매우 높은 상황으로, 상면 단가가 지속적으로 높아지고 있는 추세입니다. 전기료는 통상 사용한 만큼 종량제로 과금되는데, AI 이용 유형에 따라서 가동률 또한 상대적으로 높아져서 전기료 총액도 증가하고 있는 추세라고 말씀드리겠습니다.

Speaker #5: Ma'am Jeongyeonghun, and I will respond to your question about Paju AIDC profitability as versus the existing data centers. So yes, you are correct that if you look at our new data center, including Paju AIDC, compared to the current data centers we believe that we will be able to improve on the profitability, because the way the top-line revenue is comprised of when it comes to data center is that there is a racks-based fee plus electricity fee.

Sung Moo: I am JungHyun Woon and I will respond to your question about Paju AIDC profitability as versus the existing data centers. Yes, you are correct that if you look at our new data center, including Paju AIDC, compared to the current data centers, we believe that we will be able to improve on the profitability, because the way the top-line revenue is comprised of when it comes to data center is that there is a rack space fee plus electricity fee. Now, we see that the sales price for rack space is actually being set higher in accordance with higher level of infrastructure investment that is necessary for liquid cooling or for accommodating more number of AI servers. Also considering the fact that the demand actually outpaced supply at this point, the unit price for the server rack is also going up.

[Translator]: I am JungHyun Woon and I will respond to your question about Paju AIDC profitability as versus the existing data centers. Yes, you are correct that if you look at our new data center, including Paju AIDC, compared to the current data centers, we believe that we will be able to improve on the profitability, because the way the top-line revenue is comprised of when it comes to data center is that there is a rack space fee plus electricity fee. Now, we see that the sales price for rack space is actually being set higher in accordance with higher level of infrastructure investment that is necessary for liquid cooling or for accommodating more number of AI servers. Also considering the fact that the demand actually outpaced supply at this point, the unit price for the server rack is also going up.

Speaker #5: Now, we see that the sales price for rack-based is actually being set higher in accordance with the higher level of infrastructure investment that is necessary for liquid cooling or for accommodating a greater number of AI servers.

Speaker #5: And also, considering the fact that the demand the unit price for the server rack is also going up. In terms of the electricity fees, it is typically a pay-as-you-go type of a system, and with a higher or increase in the utilization, because it is used for AI-specific applications, we see that the total amount of electricity used is also relatively growing.

Yeo Myung-hee: In terms of the electricity fees, it is typically a pay-as-you-go type of a system and with a higher or increase in the utilization because it is used for AI-specific applications. We see that the total amount of electricity used is also relatively growing. This is the CFO again, to talk about our annual guidance and any possible changes in our shareholder return policy. Now, if you look at our H1 separate basis service revenue, it posted a growth of 3.4% year-over-year, and we're outperforming the 2% guidance target that we communicated at the beginning of the year. We do expect that as we move into the H2 of the year, mobile revenue growth may moderate, but nevertheless, we still believe that we will, without much difficulty, be able to achieve our annual guidance.

[Translator]: In terms of the electricity fees, it is typically a pay-as-you-go type of a system and with a higher or increase in the utilization because it is used for AI-specific applications. We see that the total amount of electricity used is also relatively growing. This is the CFO again, to talk about our annual guidance and any possible changes in our shareholder return policy. Now, if you look at our H1 separate basis service revenue, it posted a growth of 3.4% year-over-year, and we're outperforming the 2% guidance target that we communicated at the beginning of the year. We do expect that as we move into the H2 of the year, mobile revenue growth may moderate, but nevertheless, we still believe that we will, without much difficulty, be able to achieve our annual guidance.

Speaker #3: 그리고 연간 가이던스 및 향후 주주 환원에 대한 방향성에 대해서 말씀드리겠습니다. 먼저 연간 가이던스에 대해서 말씀드리면, 저희는 상반기 별도 기준 서비스 수익이 전년 대비 3.4% 성장하면서, 연초에 저희가 제시해 드린 가이던스 2% 수준을 상회하고 있습니다.

Speaker #3: 그리고 하반기에 무선 매출 성장이 전년 대비 다소 완화될 것으로 예상되고 있으나, 연간 가이던스는 충분히 달성할 수 있을 것으로 보고 있습니다.

Speaker #5: This is the CFO again, here to talk about our annual guidance and any possible changes in our shareholder return policy. If you look at our first half, on a separate basis, service revenue posted a growth of 3.4% year-over-year, and we're outperforming the 2% guidance target that we communicated at the beginning of the year.

Speaker #5: We do expect that, as we move into the second half of the year, mobile revenue growth may moderate. Nevertheless, we still believe that we will, without much difficulty, be able to achieve our annual guidance.

Speaker #3: 그리고 주주 환원 방향성 면에서도 보면, 이익 성장에 기반한 점진적인 확대 기조에 따라 저희가 2026년 중간 배당과 자기주식 매입 규모를 전년 대비 확대했습니다. 그리고 앞으로도 성장 투자와 재무 건전성 간 균형을 바탕으로 주주 환원을 지속 확대해 나갈 계획입니다.

Speaker #3: 그리고 AI 산업 환경 변화에 따른 투자 기회가 확대될 수 있으나, 기업 가치 제고와 주주 환원 확대라는 방향성은 일관되게 유지될 것이며, 자사주 매입은 회사의 투자 계획과 재무 여건을 종합적으로 판단해서 탄력적으로 운행해 나갈 계획입니다.

Speaker #5: And also supported by our earnings growth and our progressive shareholder return approach, we've increased the size of the share buyback, as well as the size of the interim dividend for 2026.

Yeo Myung-hee: Also supported by our earnings growth and our progressive shareholder return approach. We increased the size of the share buyback, as well as the size of the interim dividend for 2026. Upon the balance between investment for growth as well as attaining financial stability, we are going to, within that scope, continuously expand our shareholder return. Due to the changes in the AI industry, our investment approach may be subject to certain changes, but we will be very consistent towards progressive shareholder return and enhancing corporate value. When we make decisions on share buyback, we will consider multiple factors, which would include investment plan of the company as well as the financial position, and will employ a flexible approach. We will move on to the next question. The following question will be presented by Junseok Kim from KB Securities. Please go ahead with your question.

[Translator]: Also supported by our earnings growth and our progressive shareholder return approach. We increased the size of the share buyback, as well as the size of the interim dividend for 2026. Upon the balance between investment for growth as well as attaining financial stability, we are going to, within that scope, continuously expand our shareholder return. Due to the changes in the AI industry, our investment approach may be subject to certain changes, but we will be very consistent towards progressive shareholder return and enhancing corporate value. When we make decisions on share buyback, we will consider multiple factors, which would include investment plan of the company as well as the financial position, and will employ a flexible approach. We will move on to the next question. The following question will be presented by Junseok Kim from KB Securities. Please go ahead with your question.

Speaker #5: Upon balancing investment for growth as well as attaining financial stability, we are going to, within that scope, continuously expand on shareholder return.

Speaker #5: Due to the changes in the AI industry, our investment approach may be subject to certain changes, but we will remain very consistent toward progressive shareholder return and enhancing corporate value.

Speaker #5: When we make decisions on share buyback, we will consider multiple factors, which include the investment plan of the company as well as the financial position, and we will employ a flexible approach.

Speaker #2: 다음 질문, 대기자 분 질문해 주시기 바랍니다.

Speaker #5: We will move on to the next question.

Speaker #1: 다음으로 질문해 주실 분은 KB증권의 김준성 님입니다. The following question will be presented by Joon Sung Kim from KB Securities. Please go ahead with your question.

Speaker #4: 네, 안녕하십니까. KB증권 김준성입니다. 호실적이라는 좋은 소식 전해 주셔서 감사합니다. 저는 AI 사업 관련해서 두 가지를 여쭤보고 싶은데요. 하나는 AI 전략 방향성입니다. LG 그룹 AI 사업 대표주자이신 LG Uplus 관점에서, LG 그룹의 구체적인 AI 전략 방향성에 대해 공유해 주시면 좋겠습니다.

Speaker #4: 그리고 AI 전략 방향성 내에서 LG Uplus가 담당하는 역할을 말씀해 주시면, 향후 LG Uplus AI 신사업을 가늠하는 데 도움이 될 것 같습니다. 그리고 두 번째는 AI DC입니다.

Speaker #4: AI DC 사업은 관계사인 LG CNS 역시도 AI DC 사업을 운영하고 있다 보니, 겹치는 것이 아니냐고 바라보는 투자자도 있는 것 같습니다. 사업 구조 측면에서 양사의 차이점이라든지, 시너지라든지 관련해서 말씀해 주시면 좋겠습니다.

Speaker #4: 감사합니다.

Speaker #5: Thank you for taking my question. I am Kim Junseok from KB Securities. Thank you for the good results, and I would like to ask you two questions regarding your AI business.

Kim Jun-seop: Thank you for taking my question. I am Kim Jun-seop from KB Securities. Thank you for good results. I would like to ask you two questions regarding your AI business. I would like to gain some more color on what the AI strategy direction is for greater LG Group and what role that LG Uplus will play within that greater scope. That information will help us understand as to how the AIDC business will play out going forward. Second question, would like to understand because LG CNS, your affiliate, is also doing the business, the AIDC business. Some people are thinking that there may be some of an overlap. Would like to know what difference there is between the two companies and/or whether there's any synergies that we can expect.

[Translator]: Thank you for taking my question. I am Kim Jun-seop from KB Securities. Thank you for good results. I would like to ask you two questions regarding your AI business. I would like to gain some more color on what the AI strategy direction is for greater LG Group and what role that LG Uplus will play within that greater scope. That information will help us understand as to how the AIDC business will play out going forward. Second question, would like to understand because LG CNS, your affiliate, is also doing the business, the AIDC business. Some people are thinking that there may be some of an overlap. Would like to know what difference there is between the two companies and/or whether there's any synergies that we can expect.

Speaker #5: I would like to gain some more color on what the AI strategy direction is for the greater LG Group, and what role LG Uplus will play within the greater scope.

Speaker #5: That information will help us understand as to, you know, your how the AI DC business will play out going forward. Second question, I would like to understand, because LG CNS, your affiliate, is also in doing the business, the AI DC business, so there are some people are thinking that there may be some of an overlap, would like to know what difference there is between the two companies and/or whether there is any synergies that we can expect.

Speaker #3: 안녕하십니까. CSO 케빈 존입니다. 첫 번째 질문에 대한 답은 제가 드리도록 하겠습니다. LG그룹은 'One LG' 전략을 바탕으로 AI 인프라를 고도화하고, 이를 통해 새로운 가치를 창출하고자 합니다.

Speaker #3: 이는 그룹 계열사들이 보유한 냉각, 전력, 운영, 네트워크 역량을 결집해 AI 인프라 사업의 경쟁력을 강화하고, 저희 AI 연구원의 엑사원 등 AI 기술과의 연계를 통해 밸류체인을 고도화하여 보다 높은 가치를 창출하고자 하는 전략입니다.

Kevin Cho: value chain을 고도화하여 보다 높은 가치를 창출하고자 하는 전략입니다.

Kevin Cho: value chain [Foreign language]

Speaker #5: I am Kevin Joe, the CSO, and I will respond to your first question. At LG Group of Companies, we work under the One LG strategy, and we wish to further enhance our AI infrastructure and be able to generate new value as we go forward.

Sung Moo: I am Kevin Cho, the CSO. I will respond to your first question. LG group of companies, we work under One LG strategy. We wish to further enhance our AI infrastructure and be able to generate new value as we go forward. By bringing together the capabilities of each of our affiliates in the areas of cooling, power, operation, and network capabilities, we want to further strengthen our competitiveness of our AI infrastructure business. By connecting that with our AI technology represented through XR One of our AI R&D center, we wish to further scale up the overall value chain so that we may be able to generate a higher value.

[Translator]: I am Kevin Cho, the CSO. I will respond to your first question. LG group of companies, we work under One LG strategy. We wish to further enhance our AI infrastructure and be able to generate new value as we go forward. By bringing together the capabilities of each of our affiliates in the areas of cooling, power, operation, and network capabilities, we want to further strengthen our competitiveness of our AI infrastructure business. By connecting that with our AI technology represented through XR One of our AI R&D center, we wish to further scale up the overall value chain so that we may be able to generate a higher value.

Speaker #5: By bringing together the capabilities of each of our affiliates in the areas of cooling, power, operation, and network capabilities, we want to further strengthen the competitiveness of our AI infrastructure business.

Speaker #5: And by connecting that with our AI technology, represented through XL1 of our AI R&D center, we wish to further scale up the overall value chain so that we may be able to generate higher value.

Speaker #3: 이런 데 LG Uplus는 AI 인프라 운영을 담당하는 핵심 축으로서 역할을 수행하고 있습니다. 당사는 수도권 핵심 입지의 AI DC 인프라와 네트워크 연계 역량, 데이터센터 운영 노하우를 기반으로, 증강하는 AI 수요에 대응해 AI 인프라를 확대해 나갈 계획입니다.

Kevin Cho: 이 가운데 LG Uplus는 AI 인프라 운영을 담당하는 핵심축으로서 역할을 수행하고 있습니다. 당사는 수도권 핵심 입지의 AIDC 인프라와 네트워크 연계 역량, 데이터센터 운영 노하우를 기반으로 증가하는 AI 수요에 대응해 AI 인프라를 확대해 나갈 계획입니다. 이를 통해 그룹 차원의 시너지를 극대화하는 동시에 수요 기반의 투자 집행으로 운영 리스크를 관리하고, 효율적인 자본 운영을 통해 투자 효율을 높여 가고자 합니다.

Kevin Cho: [Foreign language]

Speaker #3: 이를 통해 그룹 차원의 시너지를 극대화하는 동시에, 수요 기반의 투자 집행으로 운영 리스크를 관리하고, 효율적인 자본 운용을 통해 투자 효율을 높여 가고자 합니다.

Speaker #5: And LG Uplus is serving as a key pillar in terms of AI infrastructure management and operations. We actually have AI data center infrastructure in key metropolitan locations, and, supported by our network connectivity capacity and our data center operational know-how, we will be able to respond to growing AI demand. Our plan is to further expand our AI infrastructure.

Sung Moo: LG Uplus is serving as a key pillar in terms of AI infrastructure management and operations. We actually have AIDC infrastructure in key metropolitan locations and supported by our network connectivity capacity, our data center operational know-how, we will be able to respond to growing AI demand. Our plan is to further expand our AI infrastructure. Through such efforts, we will be able to maximize synergies across the group of companies. We will be effectively managing the operational risk through investment that is supported by a solid demand and through efficient capital management. We also are seeking to further enhance investment efficiency.

[Translator]: LG Uplus is serving as a key pillar in terms of AI infrastructure management and operations. We actually have AIDC infrastructure in key metropolitan locations and supported by our network connectivity capacity, our data center operational know-how, we will be able to respond to growing AI demand. Our plan is to further expand our AI infrastructure. Through such efforts, we will be able to maximize synergies across the group of companies. We will be effectively managing the operational risk through investment that is supported by a solid demand and through efficient capital management. We also are seeking to further enhance investment efficiency.

Speaker #5: Through such efforts, we will be able to maximize synergies across the group of companies, and we will be effectively managing the operational risk through investment that is supported by solid demand and through efficient capital management.

Speaker #5: We are also seeking to further enhance investment efficiency.

Speaker #2: 예, 두 번째 질문에는 기업 AI 사업 담당 정영훈이 말씀드리겠습니다. LG Uplus와 LG CNS 모두 AI DC의 설계, 구축,

Jung Yong-hoon: 두 번째 질문에는 기업 AI 사업 담당 정영훈이 말씀드리겠습니다. LG Uplus와 LG CNS 모두 AIDC의 설계, 구축, 운영 역량을 보유하고 있고, 각사의 역량과 고객 기반에 따라 사업 모델에는 다소 차이가 있는 것으로 보입니다. LG CNS 모델을 저희가 설명드리는 것은 적절하지 않은 것 같고, 다만 LG Uplus는 데이터센터와 통신 네트워크를 통합적으로 제공하는 사업자로서 직접 투자하고 운영하는 자체 센터뿐만이 아니라 작년부터 시작한 외부 DBO 사업을 병행해 최대 규모의 데이터센터 capa를 확보해 나가고 있습니다.

Jung Yong-hoon: [Foreign language]

Speaker #1: Pyongyang, Pyongyang LG Uplus Corp. Data center. Network Pyongyang. Data center.

Speaker #2: I am Pyongyang , and from Enterprise . I would like to respond to the question on IDC between LG , and LG . CNS .

Sung Moo: I am Jung Yong-hoon, and from enterprise AI, would like to respond to the question on AIDC. Between LG Uplus and LG CNS, we both have capabilities in designing, building, and operating the AIDC center. Depending on the capabilities of each of the entities and the customer base that they have, there is a bit of a difference when it comes to the business model. It would not be appropriate for me to talk about the CNS model, but what I can tell you is that LG Uplus provides integrated package of data centers plus telecom network. We have our own center, to which we've invested and which we operate, but we also have a DBO project, which we commenced starting last year. Through these efforts, we are securing the biggest data center capacity.

[Translator]: I am Jung Yong-hoon, and from enterprise AI, would like to respond to the question on AIDC. Between LG Uplus and LG CNS, we both have capabilities in designing, building, and operating the AIDC center. Depending on the capabilities of each of the entities and the customer base that they have, there is a bit of a difference when it comes to the business model. It would not be appropriate for me to talk about the CNS model, but what I can tell you is that LG Uplus provides integrated package of data centers plus telecom network. We have our own center, to which we've invested and which we operate, but we also have a DBO project, which we commenced starting last year. Through these efforts, we are securing the biggest data center capacity.

Speaker #2: We both have capabilities in designing, building, and operating the IDC center. But depending on the capabilities of each of the entities and the customer base that they have, there is a bit of a difference when it comes to the business model.

Speaker #2: It would not be appropriate for me to talk about the CNS model, but what I can tell you is that LG Uplus provides an integrated package of data centers plus telecom network.

Speaker #2: So, we have our own center, in which we've invested and which we operate, but we also have a DBO project, which we commenced starting last year.

Speaker #2: Through these efforts, we are securing the biggest data center capacity.

Jung Yong-hoon: AI 시장이 빠르게 성장하고 있는 만큼 양사가 경쟁하기보다는 LG 그룹의 시장 규모를 함께 키우고, One LG Solution을 중심으로 고객 가치를 확대하며 각사의 역량을 강화해 나가고 있는 상황으로 이해해 주시면 감사하겠습니다.

Jung Yong-hoon: [Foreign language]

Speaker #1: In LG Group One, LG Solutions, I...

Speaker #2: Because the AI market is growing at such a fast rate, rather than two companies competing against one another, we are working together to grow the market for the greater LG Group and are supported by our One LG solution.

Sung Moo: Because AI market is growing at such a fast rate, rather than two companies competing against one another, we are working together to grow the market for the greater LG Group and supported by our One LG Solution, we are focusing on expanding the customer value and strengthening the capabilities of respective companies.

[Translator]: Because AI market is growing at such a fast rate, rather than two companies competing against one another, we are working together to grow the market for the greater LG Group and supported by our One LG Solution, we are focusing on expanding the customer value and strengthening the capabilities of respective companies.

Speaker #2: We are focusing on expanding customer value and strengthening the capabilities of our respective companies.

Sung Moo: 진행자님, 현재 질문 대기 중인 분이 계신가요?

Sung Hyunmo: [Foreign language]

Operator: 현재 대기 중인 분은 없습니다. There are no questions in the queue right now.

Operator: [Foreign language]

Speaker #3: There are no questions in the queue right now.

Operator: There are no questions in the queue right now.

Sung Moo: 더 이상 질문이 없으시면 이것으로 LG Uplus의 2026년 2분기 실적 발표 컨퍼런스 콜을 마치도록 하겠습니다. 미흡했던 답변에 대해서는 추후 IR 팀에서 성실히 답변드리도록 하겠습니다. 다시 한번 금일 참석해 주신 모든 분께 감사드립니다.

Sung Hyunmo: [Foreign language]

Speaker #1: LG Uplus You LTE

Speaker #2: Since there are no more questions in the queue, we would like to now close the second quarter 2020 earnings conference call of LG Uplus Corp.

Sung Moo: Since there are no more questions in the queue, we would like to now close the Q2 2026 earnings conference call of LG Uplus. If there are any unanswered questions, please do not hesitate to contact us at the IR team, and thank you very much everyone for joining us.

[Translator]: Since there are no more questions in the queue, we would like to now close the Q2 2026 earnings conference call of LG Uplus. If there are any unanswered questions, please do not hesitate to contact us at the IR team, and thank you very much everyone for joining us.

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