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| SK Telecom (SKT) CEO Park Jung-ho speaks at a shareholders' meeting held at the company's headquarters in central Seoul, Thursday. Shareholders approved the company's plan to set up a separate unit that will be handling mobility services. / Courtesy of SKT |
By Kim Bo-eun
SK Telecom's platform business in mobility services is set for a huge expansion, given that a new unit will be established to take charge of the business next month. It is on track to become one of the five key pillars that will drive the telecom company's transition into a global firm in information and communications technology (ICT).
The country's top telecom operator said Thursday its decision to separate the mobility business unit by setting up a new corporate body received approval at a shareholders' meeting held the same day.
"Transportation is one of the areas where key expenditures are made, along with food and living costs, and mobility takes up the largest part of our lives after mobile services," SK Telecom CEO Park Jung-ho said at the shareholders' meeting. "The decision was made to launch a firm specializing in mobility services to innovate the way people and objects move based on the ICT of SKT, creating a stir in the ecosystem of mobility services."
T Map Mobility is slated for launch on Dec. 29. T Map is SKT's version of Google Map and the company offers an automotive navigation system based on the map. The new unit will develop SKT's platform that enables hailing cabs and chauffeur services. The company's value is estimated at 1 trillion won.
Last month, SKT stated it has partnered with Uber to set up a joint entity next year. Uber has unveiled plans to invest $50 million in T Map Mobility, in addition to a $100 million won investment in the joint venture.
SKT is aiming to raise T Map Mobility's annual sales to 600 billion won by 2025, and boost the company's worth to 4.5 trillion won by then.
The separation has solidified mobility as one of SKT's five major businesses. As a phone carrier, SKT's business centers on telecommunications services, but the company has been pushing the growth of its affiliates in media, security and e-commerce, which are currently generating over a third of the company's sales. Their annual sales have been growing at an average rate of 13.4 percent.
"The mobility business, as SKT's fifth key line of business, will drive new growth," the CEO said.
SKT has long-term plans to take T Map Mobility public.
