LG CNS CEO Hyun Shin-gyoon speaks during a press conference at the Conrad Seoul hotel, Thursday. Yonhap

LG CNS will focus on driving artificial intelligence (AI) transformation for its clients as part of its mid- to long-term growth strategy following its planned initial public offering (IPO) next month, its CEO said Thursday.

The decision comes as the demand for AI and cloud services grows in Korea and abroad.

The two areas have, in recent years, emerged as major growth areas for the IT service affiliate of LG Group. Their combined sales accounted for 51.6 percent of the firm's total in 2023.

"We will strengthen our technological capability in AI and cloud services to become the first mover in global digital transformation," LG CNS CEO Hyun Shin-gyoon told reporters during a press conference.

The event was arranged to explain its vision after going public on the benchmark KOSPI next month. LG CNS submitted its securities registration statement to a relevant authority in December and is expected to debut on the main bourse on Feb. 4. The firm's market capitalization is forecast to reach some 6 trillion won ($4.1 billion) shortly after listing.

Since January 2024, the company has operated its own AI center and helped its clients in the financial industry carry out their generative AI businesses successfully, the company said.

The LG affiliate is on the path to achieving steady earnings growth with its stable business portfolio, which encompasses not only the two next revenue areas, but also traditional IT service areas and smart logistics.

LG CNS' sales soared to 5.6 trillion won in 2023, up 70.7 percent from 2019. The figure for the first three quarters of last year also came in at 3.95 trillion won, up 7 percent from a year earlier.

However, the company hopes to expand its footing abroad through the upcoming IPO.

"Our IPO bid will serve as a major turning point for us to make a leap forward on the global stage," Hyun said. "We hope our listing will provide positive momentum for the local stock market."

Regarding concerns surrounding the ongoing political turmoil in Korea, Hyun dispelled them, stating that foreign investors were "less worried" than expected about the political uncertainty caused by President Yoon Suk Yeol's martial law in December.

"We were concerned that foreign investors' sentiment in the Korean market will freeze due to a series of negative events here," Hyun said.

"But their concerns about the Korean economy and the local capital market were not serious when we had pre-IPO investor relations abroad."