South Korea’s LG CNS, an information technology services subsidiary of LG Corp., said Thursday it is set to establish a joint venture specializing in cloud conversion and operations with Megazone Cloud, the largest cloud management company here.

The companies aim to take the lead in the cloud conversion market through their JV.

They have signed a joint investment agreement. After discussing the detailed implementation plan for about three months they hope to finalize the JV’s establishment within this year.

Through the partnership, LG CNS seeks to bag the largest market share in the domestic cloud transformation market.

Last year, the Korean tech firm won the Korean Air’s cloud transformation business, which converts its entire enterprise IT system to Amazon Web Services public cloud.

In March, LG CNS announced plans to raise the cloud conversion rate of group affiliates to 90 percent by 2023.

Korea’s public cloud service market is predicted to grow to 2.29 trillion won ($1.9 billion) by 2020, according to US market research firm Gartner. 

By Shin Ji-hye (shinjh@heraldcorp.com)