slowdown

March 6 (Asia Today) — LG HelloVision is still struggling to revive its mobile virtual network operator business, with subscriber growth and revenue showing little momentum despite broader expansion in South Korea’s budget mobile market.

The company said its budget mobile revenue rose to 156.7 billion won ($118 million) last year from 156.1 billion won ($117 million) a year earlier, an increase of just 0.4%.

The business remains one of LG HelloVision’s key revenue sources, accounting for about 10% of total sales. But its performance has remained largely flat as subscriber growth has slowed.

LG HelloVision said its budget mobile subscriber base, including internet-of-things lines, stood at about 770,000 in the first half of last year, up only about 20,000 from a year earlier.

Industry analysts said the company received limited benefit from increased number-transfer demand that followed last year’s telecommunications hacking incident.

South Korea’s three major wireless carriers responded with aggressive marketing campaigns to attract subscribers, reducing the spillover effect that smaller operators such as LG HelloVision had hoped to capture.

Its parent company, LG Uplus, reported about 21.7 million mobile subscribers last year, up 6.6% from about 20.4 million a year earlier. Mobile service revenue rose to 6.67 trillion won ($5.01 billion) from 6.43 trillion won ($4.83 billion).

One industry official said LG Uplus, which was seen as less affected by the hacking fallout, appeared to absorb a large share of switching demand through aggressive marketing.

Analysts also pointed to LG HelloVision’s cautious approach to new pricing plans and promotions as another reason for the prolonged slump.

The company has faced profitability pressure while growth in its core pay television business has stalled. After posting operating profit in the 40 billion won range in 2023, it has remained in the 10 billion won range over the past two years.

Aside from a new plan introduced late last year that included compensation for financial fraud such as voice phishing, the company has made few notable changes to its budget mobile offerings.

LG HelloVision said it plans to try to revive subscriber growth this year with a new promotion tied to next week’s launch of Samsung Electronics’ Galaxy S26 smartphone series.

Customers who buy a Galaxy S26 device and sign up for one of the company’s plans will receive a 30,000 won ($23) gift certificate. Subscribers to its Coupon Pack plan will also receive additional coupons worth 120,000 won ($90).

The company has also added artificial intelligence features to improve the sign-up process. On its website, users can enter their preferences and receive tailored plan recommendations along with summaries of customer reviews.

Still, analysts say competition with the three major wireless carriers is likely to remain a challenge.

Industry observers expect another round of large smartphone subsidies this year, led in part by KT, which reportedly lost a substantial number of subscribers earlier this year after penalty fees were waived for some customers.

Given the structure of the budget mobile market, analysts said LG HelloVision may need to focus more heavily on low-cost promotional plans and more specialized offerings aimed at specific customer groups.

— Reported by Asia Today; translated by UPI

© Asia Today. Unauthorized reproduction or redistribution prohibited.

Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260306010001749

March 5 (Asia Today) — China has lowered its economic growth target to between 4.5% and 5% for 2026, marking the lowest level in about 35 years as the country grapples with deflation, weak domestic demand and mounting external pressures.

Chinese Premier Li Qiang announced the target Wednesday in a government work report at the opening of the Fourth Session of the 14th National People’s Congress in Beijing.

The new range represents a modest reduction from the government’s previous goal of growth of “around 5%,” which had been maintained for the past three years. The change signals that Chinese leaders acknowledge mounting economic challenges.

One of the biggest concerns is the prolonged downturn in the country’s real estate sector, which analysts estimate accounts for roughly a quarter of China’s gross domestic product. The continued slump has contributed to weakening consumer spending.

Youth unemployment, U.S. tariffs and technology restrictions and broader global uncertainty have also weighed on the outlook, making even the lower end of the target difficult to achieve.

Despite the slowdown, Beijing signaled plans to support the economy through fiscal stimulus. Authorities plan to issue 1.3 trillion yuan in ultra-long-term special government bonds to finance major infrastructure projects and consumption subsidies.

The government also plans to issue an additional 300 billion yuan in special bonds to strengthen the capital base of state-owned commercial banks.

China’s defense budget will rise 7% this year to 1.9096 trillion yuan, slightly lower than the 7.2% increases recorded annually over the past three years.

The continued growth in military spending underscores Beijing’s commitment to modernizing its armed forces ahead of the centennial of the People’s Liberation Army in 2027.

Li also outlined long-term goals tied to the country’s upcoming 15th Five-Year Plan for 2026-2030, saying China aims to maintain steady economic expansion and double per capita GDP by 2035 compared with 2020 levels.

The premier said China will increase research and development spending by more than 7% annually during the plan period.

In foreign policy remarks, Li said China “firmly opposes hegemony and power politics,” a phrase widely interpreted as criticism of the United States.

However, the tone of the criticism was relatively restrained. Observers in Beijing say the cautious language may reflect efforts to ensure a smooth visit later this month by U.S. President Donald Trump for talks with Chinese President Xi Jinping.

— Reported by Asia Today; translated by UPI

© Asia Today. Unauthorized reproduction or redistribution prohibited.

Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260305010001413