LG insists Huawei equipment not a security risk amid US call for replacement

South Korean telecom giant LG Uplus Corp. insisted that Huawei Technologies Co.'s 5G equipment does not pose security risks in response to US deputy assistant secretary of state Robert Strayer's to replace the Chinese equipment.

LG Uplus is the only South Korean carrier using Huawei's 5G equipment.

The US accuses Huawei of spying and stealing sensitive information, thereby compromising a country's internet communications.

According to an LG Uplus spokesperson, they and Huawei have done all they could in proving security.

Local industry experts say LG Uplus has much to lose in replacing Huawei products due to their years as business partners.

According to Kim Jong-ki, a research fellow at the Korea Institute for Industrial Economics & Trade, LG Uplus will face equipment compatibility issues if it switches to other 5G equipment since it has used Huawei products for its 4G LTE services.

Consequently, an abrupt change would be costly and delay its plans to deploy 5G.

LG Uplus also uses 5G equipment from Samsung Electronics Co., Finland's Nokia Corp., and Norway's Ericsson. Still, the Huawei equipment is the one installed on the broader capital region and Gangwon Province.

LG Uplus had 1.7 million 5G subscriptions in South Korea as of May, trailing SK Telecom Co. with 3.1 million and KT Corp. with 2.1 million.

The three carriers would commit up to 25.7 trillion won to build a nationwide 5G network by 2022 and are all in search of new 5G equipment suppliers by the end of this year to test 5G on the 28-gigahertz (GHz) band, which is faster than the current 3.5 GHz band.

So far, LG Uplus remains tight-lipped on its equipment providers for the 28GHz band.