Huawei launches 5G lab in S.Korea, but keeps event low-key after US ban

LG Uplus

30/05/2019 04:23

By Ju-min Park
    SEOUL, May 30 (Reuters) - Huawei Technologies  HWT.UL 
unveiled an open lab for next-generation 5G wireless network in
South Korea on Thursday, but kept the launch low-key given its
recent blacklisting by the United States, a key security ally of
the Asian nation.
    The Chinese tech giant, the world's top producer of telecoms
equipment, said it planned to invest about $5 million in the lab
in the Junggu district of Seoul. It did not provide any more
details on the location and did not invite media to the launch.
    "Based on the philosophy of "In Korea and for Korea" and the
strength of its own 5G network, Huawei will build a 5G ecosystem
through cooperation with a number of South Korean ICT companies
and especially small-and-medium enterprises," Huawei's Korea
office said in a statement.
    The event was, however, overshadowed by the U.S. decision
earlier this month to ban American tech and telecom firms from
doing business with Huawei. Washington has also been urging its
allies to bar the Chinese company from their 5G networks.
    Huawei had initially considered inviting the press to the
launch in South Korea, but after the U.S. ban it decided to keep
the event low-key, a person with knowledge of the matter said.
    "Huawei wanted to promote the launch to as many Korean
small-and-medium enterprises as possible, but it decided to keep
the press out after the ban to avoid any damage to its Korean
partners in case they are shown in media," the person said,
declining to be named due to the sensitivity of the matter.
    Huawei said the heads of South Korean enterprises attended
the event, but did not disclose any names. 
    The move underlines Huawei's commitment to South Korea from
where it purchases components such as chips and screens.
    The U.S. campaign against Huawei, and the broader U.S.-China
trade war, have landed export-driven South Korea in a familiar
bind, caught between its crucial security ally and biggest
trading partner.  urn:newsml:reuters.com:*:nL4N2320A4
    The lab in South Korea is Huawei's first open 5G services
development centre in the world that will allow other companies
to test their platforms, according to the company.
    South Korea rolled out 5G services in April https://www.reuters.com/article/us-southkorea-5g/south-korean-u-s-telcos-roll-out-5g-services-early-as-race-heats-up-idUSKCN1RF0MF,
 hoping the next-generation wireless technology will spur
breakthrough in fields such as autonomous cars. 
    Currently, Huawei provides its 5G network equipment for a
small South Korean carrier LG Uplus  032640.KS . LG Uplus has
said it does not plan to remove Huawei gear, but promised to
step up security checks.
    The two bigger carriers, SK Telecom  017670.KS  and KT
 030200.KS , do not use Huawei gear.

 (Reporting by Ju-min Park; Editing by Himani Sarkar)
 ((ju-min.park@thomsonreuters.com; +82 2 3704 5650; Reuters
Messaging: ju-min.park.thomsonreuters.com@reuters.net))