(image: Kobiz Media / Korea Bizwire)
SEOUL, Jun. 19 (Korea Bizwire) — SK Telecom Co., South Korea’s No. 1 mobile carrier, on Tuesday said an online shopping mall operated by its subsidiary has attracted 500 billion won (US$449 million) in investment amid fierce competition in the e-commerce sector.
SK Telecom said it will establish a new corporation hived off from SK Planet Co. to run 11st based on the investment from private equity fund H&Q Korea.
The decision was made during SK Planet’s boardroom meeting earlier in the day, with the launch of the new firm expected for September. The decision needs approval from its shareholders during their meeting slated for the end of July.
SK TechX Co., a business-to-business data technology affiliate wholly owned by SK Telecom, will be merged with SK Planet, which provides data-based marketing solutions, according to the mobile carrier.
SK Telecom said the reorganization scheme is aimed at seeking a new growth engine through the affiliates’ respective specialization.
11st will focus on developing new services based on artificial intelligence (AI) and other information and communications technologies, including the expansion of its mobile payment system, 11pay, it said.
The latest decision is part of SK Group’s broader efforts to expand its foothold in the country’s online retail market.
Earlier this month, SK joined hands with BGF Co., the investment unit of South Korea’s largest convenience store chain CU, to run Hello Nature Co., a subsidiary of SK Planet, as a joint venture to better tap into the fast growing online grocery sector.
According to government data, sales of 13 major online stores and marketplaces soared 15.9 percent on-year in April.
“We now have a business structure that can promptly and flexibly respond to the fourth industrial revolution,” a SK Telecom representative said.
The fourth industrial revolution refers to a new innovative digital economy backed up by progress in the Internet of Things (IoT), AI, autonomous machines and big data.
(Yonhap)
