IT service companies all doing well, only POSCO DX growth slows - Korea

According to the Korea Financial Supervisory Service, the operating profits of the three major IT service companies, Samsung SDS, SKC&C and LG CNS, increased in the April-June 2024 period compared to the same period last year.
The strong performance was driven by a sudden increase in demand from customers to convert their in-house systems to the cloud. Another factor was the promotion of conversion to the cloud to improve business efficiency.
Samsung SDI's operating profit increased 7.1% year-on-year to 220.9 billion won (approximately 23.9 billion yen).
The demand for subscription Graphics Processing Unit (GPU) services for high performance computing (HPC) and generative AI (artificial intelligence) applications is growing, and sales are
In addition, SKC&C's operating profit increased 13.8% to 32.2 billion won (about 3.49 billion yen), and LG
CNS's operating profit increased 21% to 137.7 billion won (about 14.93481 billion yen).
Meanwhile, POSCO DX fell 29.1% to 24.3 billion won (approximately 2.6 billion yen). The slowdown in business at its major clients led to the postponement of investments and the associated business launch schedules.
In the second half of the year, the company plans to discover digital transformation (DX) businesses and utilize overseas development centers to reduce labor costs, aiming to recover operating profits.