The Lee Jae-myung administration is pushing 'AI great transition (AX)' as a major policy task, with domestic IT service companies Samsung SDS, LG CNS, and SK AX (formerly SK C&C) showing signs of recovery in performance and stock prices. Expectations for policy benefits are rising in line with the government's public-private joint investment of 100 trillion won, the establishment of a national GPU (graphics processing unit) cluster, and the full-scale launch of the 'Everyone's AI Project.'
According to financial information provider FN Guide, Samsung SDS's consolidated revenue for this year is expected to be 14.3786 trillion won, with an operating profit of 985.8 billion won. This represents an increase of 3.9% and 8.2% respectively from the previous year. Operating profit is projected to rise to 1.0588 trillion won next year and to 1.1225 trillion won by 2027.
Stock prices are also rebounding. Samsung SDS's share price fell to the low 110,000 won range earlier in March but then began to rise, recording a closing price of 136,400 won on the 9th. Kim Ji-hyun, a research analyst at Heungkuk Securities, noted, 'Samsung SDS will significantly expand its generative AI and cloud business in the second half, focusing on the public and financial sectors.' He analyzed that 'the government AI platform and intelligent business management system can be implemented at the company's private cloud center in Daegu.'
LG CNS is also showing a notable recovery in both performance and stock prices. In the first quarter, it recorded consolidated revenue of 1.2114 trillion won and operating profit of 78.9 billion won, marking increases of 13.2% and 144.3%, respectively, compared to the same period last year. Revenue from cloud and AI businesses reached 717.4 billion won, accounting for 59% of the total.
According to FN Guide, LG CNS's revenue for this year is expected to be 6.4913 trillion won, with an operating profit of 567.8 billion won. Next year, revenue is projected to reach 7.1191 trillion won, and operating profit is expected to be 659.7 billion won. By 2027, revenue is anticipated to grow to 7.8693 trillion won, and operating profit to 761.9 billion won. The stock price fell to 46,500 won in March compared to the public offering price of 61,900 won following its listing, but it has since turned around with a rise, reaching 53,500 won as of the 9th. Mirae Asset Securities adjusted LG CNS's target stock price upward to 70,000 won in a report at the end of last month.
The financial soundness of LG CNS is also receiving attention. On the 4th, Korea Ratings raised LG CNS's credit rating to 'AA stable.' Earlier, Korea Credit Rating and NICE Investors Service also upgraded their ratings to the same level. Credit rating agencies cited LG CNS's competitiveness in winning orders, profitability, and improvements in financial structure as the basis for their upgrades.
SK C&C changed its name to 'SK AX' last month and declared a group-wide AI transition strategy. The company stated, 'We will transform into an AX service partner that leads customer innovation with AI technology,' and is redesigning work, organization, and systems around AI. Along with SK Telecom and SK Broadband, they are building an AI data center (AIDC) based on GPU infrastructure, aiming for a 30% increase in overall productivity by 2027. SK AX reported a revenue of 586 billion won and an operating profit of 29 billion won in the first quarter, marking an approximately 41% increase in revenue and a return to profit compared to the same period last year.
An official in the IT service industry stated, 'AX is not just a simple digital transition but a structural transformation that reshapes national infrastructure, services, and governance altogether,' adding that 'major IT service corporations that possess technology, data infrastructure, and customer touchpoints will inevitably play a larger role as partners with the government and industry.'