LG CNS to join with Japan’s SBI Group

LG CNS will become the first South Korean firm to forge a cross-border partnership with a Japanese financial company to provide IT services, the Seoul-based company said Tuesday.

With Japan’s SBI Group, LG CNS said it would be forming a joint entity called SBI-LG Systems that would handle all of the IT services related to SBI, a top Japanese financial company with assets worth 13 trillion won ($11.5 billion) and over 100 affiliates, some of which are located outside of Japan.

LG CNS will hold a 51 percent stake, while SBI will hold 49 percent in the joint firm that will be established with initial capital of 6.6 billion won.

“The venture marks an unprecedented step into the Japanese financial markets, which are widely known for being exclusive,” said Chang Hyuk, a spokesman for LG CNS.

He said the partnership would be mutually beneficial as LG CNS would be given a chance to widen its foray into the Japanese and overseas markets, while SBI can hope to reduce IT costs.

SBI also may collect proceeds from the profit SBI-LG Systems raises in the future since the company will be catering to other clients, mostly among financial firms in Japan, Chang said.

By Kim Ji-hyun (jemmie@heraldcorp.com)