South Korea’s LG CNS signed a business agreement with Japan’s KDDI on 14 October to pursue AI and digital transformation projects across Asia-Pacific, where KDDI has business-to-business operations at 19 locations in 15 countries, Seoul Economic Daily reported.
Key points
- The agreement sets out cooperation on AI, telecommunications, smart cities and systems integration.
- LG CNS and KDDI plan tailored agentic AI services and are considering robot-based business automation.
- Vietnam, Thailand, the Philippines, Indonesia and China are priority markets for a joint working group.
LG CNS and KDDI set out joint scope
LG CNS said the agreement covers efforts to identify business opportunities in AI, smart cities, telecommunications and integrated systems operations and management, Chosunbiz reported. The companies intend to combine LG CNS’s AI and digital transformation capabilities with KDDI’s telecommunications infrastructure. Their plans include services for companies in KDDI’s Asia-Pacific operations.
KDDI offers mobile and internet access services to consumers and sells AI, cloud computing and telecommunications network services to businesses, Seoul Economic Daily reported. Its existing regional operations give the companies locations from which to pursue the proposed work. The agreement also covers a review of cooperation in telecommunications and systems integration and management, alongside the AI and smart city plans.
Park Sang-gyun, an executive vice president and head of LG CNS’s telecommunications, retail and services division, said the combination of the companies’ capabilities was expected to create business opportunities across Asia-Pacific.
AgenticWorks and PhysicalWorks form the AI plan
The partners plan to develop agentic AI services tailored to local corporations for use in KDDI’s Asia-Pacific operations. LG CNS intends to base that work on its agentic AI platform AgenticWorks, Chosunbiz reported. Seoul Economic Daily renders the platform’s name as Agentic Works. The proposed services are one part of the wider agreement, which also extends to telecommunications and management of integrated systems.
LG CNS and KDDI are also considering cooperation on business automation using physical AI. Their proposal would use LG CNS’s robot transformation platform, PhysicalWorks, to provide integrated management services for robots at industrial sites. Manufacturing, logistics and retail businesses that use robots are among the customers the companies intend to address.
The robot proposal remains under consideration, while development of the tailored agentic AI services is part of the partners’ stated plan. Those are distinct steps within the agreement: one centres on services for local companies using LG CNS’s AI platform, and the other on managing robots already deployed at customer sites.
Southeast Asian smart cities join the target markets
For smart city projects in Southeast Asia, the companies plan a business model combining LG CNS’s city integrated control system and intelligent transportation system with KDDI’s telecommunications infrastructure and business capabilities. LG CNS also intends to bring its experience delivering smart city projects internationally to that work. The partners are exploring cooperation on smart city projects in Southeast Asia.
The smart city proposal broadens the planned work beyond services sold directly to corporations. It draws on LG CNS’s urban systems and KDDI’s network capabilities, while the separate AI and robot proposals address corporate operations. The agreement puts all three areas within the same regional effort to identify business opportunities.
LG CNS and KDDI have formed a working-level consultative body to develop joint opportunities, Chosunbiz reported. They designated Vietnam, Thailand, the Philippines, Indonesia and China as priority target markets.
