Samsung SDS, LG CNS post Q3 gains and outline AI expansion plans
Samsung SDS reported 3.7725 trillion won in quarterly revenue, while LG CNS posted 1.6643 trillion won, as both firms pointed to AI-related work in finance.
Samsung SDS and LG CNS reported their third-quarter results on October 29 and 30 and set out expectations for new business tied to corporate adoption of AI, according to techm.kr.
Samsung SDS posted revenue of 3.7725 trillion won and operating profit of 241 billion won, up 11.2% and 3.7% year on year respectively. IT services revenue rose 5.3% to 1.681 trillion won, with cloud revenue at 796.1 billion won, up 18%. The company said its ERP orders this year are expected to rise more than 20% year on year and that external orders should more than double. It plans to expand external ERP construction revenue by about 40% next year compared with this year.
LG CNS reported revenue of 1.6643 trillion won and operating profit of 138.2 billion won, up 9.3% and 15.0% respectively. AI and cloud revenue was 961.5 billion won, up 9.3%, while digital business services revenue rose 21.3% to 408.2 billion won. The company expects annual revenue growth close to double digits this year.
AI work in banking and securities
LG CNS is applying generative AI agents to loan and corporate finance support and AI-based document processing in the second phase of KB Kookmin Bank's core banking modernization. It is also using AI for marketing content generation and security work in KB Securities' information systems next-generation project.
The company said AI agent projects in the financial sector are still largely proofs of concept and demonstrations, making scale and profitability hard to compare directly with large SI projects. LG CNS Vice President Kim Hong-geun said AX investment is seen as more complementary to existing SI than as a replacement.
Samsung SDS said it is carrying out related data construction projects in the financial sector and that customers adopting next-generation ERP are increasing demand for AI-centered business process redesign. It expects double-digit IT services revenue growth next year and is targeting annual operating profit of 1 trillion won or more.
Quick answers
What were Samsung SDS's third-quarter results?
Revenue was 3.7725 trillion won and operating profit was 241 billion won, up 11.2% and 3.7% year on year respectively.
What were LG CNS's third-quarter results?
Revenue was 1.6643 trillion won and operating profit was 138.2 billion won, up 9.3% and 15.0% respectively.
What AI projects is LG CNS doing with KB Kookmin Bank?
It is applying generative AI agents to loan and corporate finance support and AI-based document processing in the second phase of the bank's core banking modernization.