SKT moving to expand in Japanese market
By Jun Ji-hye
SK Telecom (SKT) is moving to expand its influence in the Japanese market, establishing its third overseas corporation in Tokyo, the firm said Friday.
SK Telecom CEO Park Jung-ho speaks during a shareholders' meeting at the firm's head office in Seoul, March 21. / Courtesy of SK Telecom
The new corporation aims to gain a foothold in the Japanese market as SK Group affiliates expand their businesses there.
An SKT official said the firm established SK Telecom Japan Inc. in Tokyo on March 1 after the board of directors approved the plan at a Feb. 2 meeting.
SKT holds a 100 percent stake in the corporation.
The mobile carrier also has corporations in the U.S. and China.
“The corporation in Japan is tasked with researching various business models and offering consulting as our affiliates expand in Japan,” the official said.
SK hynix, the world's second-largest memory chip provider, is one of the U.S.-Korea-Japan consortium members seeking to acquire the computer memory chip business of Japanese electronics company Toshiba.
The Toshiba deal has firmed up following the Chinese government's approval on Thursday.
Toshiba said the sale of the unit has cleared all antitrust regulatory approvals following the Chinese government's decision. It said the deal, estimated at 2 trillion yen ($18 billion), can close by June 1.
In September, the global consortium signed the deal to acquire Toshiba's memory unit. Among the eight countries authorized to deliberate on the deal's impact, only China had not granted its approval.
SM Life Design Company, a subsidiary of iRiver, a maker of music players and electronic dictionaries, also makes goods in Japan for cheering activities such as scarves and gloves.
SKT acquired iRiver in 2014, and earlier this year announced plans to launch a new music platform in cooperation with three entertainment companies _ SM Entertainment, JYP Entertainment and Big Hit Entertainment.
“The corporation in Japan will help SK affiliates better understand the characteristics of the Japanese market and explore better business opportunities,” the official said.
Choi Woo-sung, who headed SKT's Tokyo office, has been named to lead the corporation. SKT has operated the Tokyo office since 2003.
Market observers say turning the Tokyo office over to the corporation means SKT has confirmed the Japanese market's business potential. The corporation can also create synergy with SKT's five subsidiaries in Japan, including SK Planet Japan, they said.