SK Networks presents AI-driven future growth strategy

SK Networks President and Chief Operating Officer (COO) Choi Sung-hwan speaks during the company's annual meeting for institutional investors in Seoul, Friday. Courtesy of SK Networks

SK Networks has pledged to transform its overall business structure by introducing innovative profit models powered by artificial intelligence (AI) so that it can achieve triple earnings growth by 2026, the company said Sunday.

According to the ICT arm of SK Group, it recently held a general meeting for institutional investors, presenting a set of its next growth strategies — driven by AI and robotics. The company said the AI-focused strategy will help it generate an annual operating profit of 700 billion won ($524.6 million) in less than three years.

Specifically, SK magic, a home appliance rental business subsidiary of SK Networks, will launch new AI-converged IT devices and solutions this year in lucrative growth areas such as pet care and health care. The company also plans to expand its overseas presence by launching its services in markets including the United States and India.

Walkerhill Hotels & Resorts — operated by SK Networks — is also poised to reshape its brand image as an AI hotel. It will become a venue for customers to enjoy special content with a combination of K-culture and AI technologies. The hotel is also set to develop its non-fungible token (NFT)-based membership and offer more customized services for visitors. Under the drive, the hotel aims to attain triple growth of its revenue over the next three years.

SK Networks CEO Lee Ho-jeong speaks during the firm's annual meeting for institutional investors in Seoul, Friday. Courtesy of SK Networks

“SK Networks will be able to attain the target operating profit by the end of 2026, which is almost triple growth from 2023,” an official from the company said. “Coupled with the revenue growth, we will also be able to enhance our corporate value and do good to interested parties.”

SK Networks CEO & President Lee Ho-jeong also promised to deepen transparent communication with shareholders and investors here and abroad.

“We will continue to pursue sustainable growth by introducing AI as the key theme for our businesses,” Lee told investors during a meeting for institutional shareholders last Friday. “The strategy will keep developing our businesses and help shareholders hold our shares for a longer period of time.”

The company will also create more synergy with our partners and affiliates, so as for both sides to map out more concrete visions, he added.

“In the process, we will transparently communicate with interested parties when making crucial decisions and changing our strategies.”