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Title LG CNS Launches Joint Venture in Uzbekistan Date 2015-09-18
- A joint venture between LG CNS and Uzbekistan government
- Responsible for Informatization in public and private sector settings


LG CNS(www.lgcns.com, CEO: Dae Hoon Kim) launched a joint venture on the 14th of September in Uzbekistan which was at the center of the Silk Road in the past and is known to be a leading power in Central Asia. The company focuses on the Information and Communications Technology (ICT) with the Ministry of Development of Information Technologies and Communications (MDITC) in the Republic of Uzbekistan.

The formal name of the joint venture is LG CNS Uzbekistan LLC (LG CNS Uzbekistan). LG CNS has 51% of the shares for the joint venture and also, Uztelecom and Unicon, which are publicly owned companies under MDITC, have 29% and 20% of the shares respectively.

The launching ceremony of the joint venture was held in the LG CNS Uzbekistan office at the International Business Centre in Tashkent, Uzbekistan. LG CNS CEO (Dae Hoon Kim), managing director (Jin Koog Park), the joint venture president (Jong Gu Choi) attended the ceremony. Also, the minister for MDITC (Khurshid Mirzakhidov), the vice minister for MDITC (Nam-sok Kim) and Unicon CEO (Khislat P. Khasanov).

LG CNS Uzbekistan will carry out ICT businesses requested by Uzbekistan MDITC, which manages ICT businesses in public and private sectors in the country. The company is currently implementing the corporate/individual database system after receiving the order from MDITC and will also plan to work on various projects for e-Government.

Based on the solid cooperation, MDITC and LG CNS both agreed to expand their cooperation in the smart technology fields such as solar power plant and smart green city.
The company is the result of both the Uzbekistan government’s effort to attract advanced ICT companies to foster the local ICT industry and the LG CNS’ effort to produce good results in overseas businesses.

LG CNS has successfully implemented the Korean electronic government, such as the registration system of the Supreme Court, and is equipped with the world-class[1] expertise and technology in the implementation of electronic government. Based on these expertise and technology, LG CNS has actively explored ways to venture into the overseas markets.
LG CNS offered technology transfer and nurturing of ICT experts to the Uzbekistan government. The Uzbekistan government issued a president’s resolution to provide tax and tariff benefits and negotiation rights to the joint venture.

The items of technology transfer include LG CNS’ work processes, methodologies, IT business systems, training programs and solutions.
Also, the Korean government provided direct and indirect support for the establishment of the joint venture.
LG CNS has held training on the electronic government implementation since 2005 for the ICT personnel from different countries including Uzbekistan through the “International Administration Information Management” course co-offered by the Central Officials Training Institute and the Korea International Cooperation Agency (KOICA).
Also, LG CNS accompanied the Korean president Geun-hye Park in June, 2014 when she visited Uzbekistan, and signed an MOU with the Uzbekistan government on the establishment of the joint venture, on which both governments showed keen interest.

In August, 2014, LG CNS invited 16 officials and IT engineers from the State Tax Committee and the affiliated organizations of the State Committee for Communications, Informatization and Telecommunication Technologies (currently, MDITC) of Uzbekistan, holding the consulting and training sessions for them for the establishment of the master plan for electronic government.

Dae Hoon Kim, CEO of LG CNS, said “LG CNS, as one of the leading ICT companies in Korea, will utilize its technology and expertise to help improve the ICT competitiveness of Uzbekistan“.
After the launching ceremony, LG CNS’ CEO and executive officers attended the “Uzbekistan ICT Week,” the largest ICT event held in Uzbekistan, and discussed with Rustam Azimov, the First Deputy Prime Minister and Minister of Finance, on the development of economy based on ICT.

“Uzbekistan ICT Week” is a conference that introduces the latest ICT trends and consists of exhibitions and seminars held by ICT companies, allowing you to check the ICT status of Uzbekistan. LG CNS also exhibited its cases of successful electronic government implementation in the ICT Week.
[1]Source: Data on Electronic Government, Division for Public Administration and Development Management, UN Department of Economic and Social Affairs, and the Korean e-CountryIndex (www.index.go.kr). Korea was listed as the no. 1 country in the UN electronic government ranking in 2010, 2012, and 2014. [back to the article]


photo

[Description] LG CNS and Uzbekistan MDITC attended the launching ceremony of the LG CNS Uzbekistan joint venture. From the second on the left, the Uzbekistan vice minister of MDITC Nam-sok Kim, Unicon CEO Khislat P. Khasanov, LG CNS CEO Dae Hoon Kim, the Uzbekistan minister of MDITC Khurshid Mirzakhidov, Korean ambassador to Uzbekistan Wook hun Lee, LG CNS Uzbekistan president Jong Gu Choi, Uztelecom vice president, LG CNS managing director Jin koog Park.

[References]

Uzbekistan

Uzbekistan has the “state capitalism” led by the government and has grown by an average of 7% based on its rich natural resources.
Uzbekistan’s GDP is USD 63.1 billion and GDP per capita is USD 2,000. The country has led the growth of the economy based on its rich natural resources. The Uzbekistan government reflected on the fact that the local ICT market is rather small and has exerted its effort to develop the country’s ICT, mainly centering on the public sector including the electronic government.
Korea has joined the ICT development plan of the Uzbekistan government. KOICA established a job training center in Tashkent, Uzbekistan, in 2012 and provided training in a variety of fields including information technology. Recently, it announced a plan to establish another job training center in Samarkand, the second largest city in Uzbekistan.

Ministry of Development of Information Technologies and Communications of the Republic of Uzbekistan (MDITC)
MDITC was established in Oct. 16, 2012 according to the president’s resolution. Its name at the time of establishment was “State Committee for Communications, Informatization and Telecommunication Technologies,” but it has been renamed as “Ministry of Development of Information Technologies and Communications” in February, 2015.
Main businesses of MDITC include: ▲ Execution of ICT policies, ▲ Management of ICT standards, ▲ Implementation of efficient national systems based on ICT, and ▲ Management of international cooperation in the ICT field.
MDITC has about 20 public agencies and organizations, including JSC Uzbektelecom, Center for Radio Broadcasting and Television, Centre for Development of Electronic Government, etc.

Uztelecom
Uztelecom is Uzbekistan’s publicly owned telecommunications company established in 1992 and has about 14,000 employees. Its sales volume is USD 3 trillion 12 million (as of 2013). Its main businesses include leasing the telecommunication network, connecting international and long-distance calls, and providing Internet and IPTV services.

Unicon
Unicon is Uzbekistan’s publicly owned ICT consulting company established in 1992 and has about 210 employees. Its sales volume is USD 2.7 million (as of 2013). Its main businesses include introducing new technologies, managing communication network, connecting different networks, managing the traffic of various communication services, providing technology security services, setting the network usage fees, and performing the market survey.
Based on the solid cooperation, MDITC and LG CNS both agreed to expand their cooperation in the smart technology fields such as solar power plant and smart green city.