The Korea Trade Insurance Corporation announced it will provide $18 million in trade insurance to support LG Electronics' export of its TV platform service.
The TV platform service generates new revenue by advertising OTT brands on the TV platform screen after the sale of the TV. This indicates a shift in the revenue structure of the TV business from a one-time product sale to a model that continuously generates advertising and content revenue based on sold devices.
In response to intensified competition in the TV market, LG Electronics is expanding its business model through the TV platform service. This support marks the first instance of trade insurance aiding the export of the TV platform service, allowing LG to secure protection for its exports of OTT brands and content advertising services in addition to its existing hardware exports.
Jang Young-jin, president of the Korea Trade Insurance Corporation, stated, "Service exports are a future growth engine that creates high added value. We will enhance the competitiveness of our companies through tailored support that responds to the changing global trade environment."
* This article has been translated by AI.
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