SKT Appoints Group's Strategic Expert, Marking Pinnacle in 'AI Company' Transformation

[Korea Financial Times, Kim JaeHun] SK Telecom (CEO Ryu Young-sang, hereinafter SKT) has restructured its board of directors this year, including the appointment of Kang Dong-soo, head of SK Group's Portfolio Management (PM) division, as a non-executive director. This move signals a shift in business strategy, considering that last year the company focused on group-level financial management by adding two financial experts to the board.

This decision is interpreted as SK Group's intention to bolster SKT, which has been showing prominence in AI business, while the group has been pursuing AI-centered rebalancing since last year. SKT CEO Ryu Young-sang also plans to complete the transformation into a "profitable AI provider" this year, backed by the group's full support.

On March 26, SKT held its 41st Annual General Meeting of Shareholders at T-Tower in Euljiro, Seoul, where it approved business reports, 2024 financial statements, and director appointments.
Through the director appointment agenda, SKT nominated Kang Dong-soo, head of SK PM division, as a new non-executive director. Typically, non-executive directors from parent or holding companies oversee business strategies and management of affiliates. Thus, the appointee can indicate the company's business direction and tone for the year.

Division Head Kang Dong-soo has managed new business portfolios and investments for SK Group companies, having served as ▲SK Energy's Head of Management Planning ▲SK SUPEX Council's Social Value (SV) Promotion Team Executive ▲SK Energy's Head of Solution & Platform Promotion ▲SK Innovation's Portfolio Division Head. He is currently leading SK Group's rebalancing efforts.

An SKT official stated, "Division Head Kang Dong-soo is a strategy and finance expert overseeing the group's portfolio management. He will help establish a foundation for continuous growth in telecommunications and AI business areas amid ongoing uncertain external conditions."

Kang's appointment as a non-executive director is seen as SK Group's determination to accelerate SKT's AI business expansion this year.

Last year, SKT appointed Kim Yang-sub, CFO from SK Innovation, and Lee Sung-hyung, SK CFO, as internal and non-executive directors respectively. Both are considered traditional financial experts in SK Group. This move was intended to strengthen financial management for SKT's AI company transformation strategy, as SKT is the only affiliate recording stable profits while SK Group pursues AI-centered rebalancing.

In fact, SKT focused on cost management and AI-centric business reorganization last year, resulting in a 4% year-on-year increase in operating profit to KRW 1.8234 trillion on a consolidated basis. Revenue also grew by 1.9% to KRW 17.9406 trillion compared to the previous year. SKT was the only company to maintain growth in performance compared to competitors, as the telecommunications industry faced a slowdown. Notably, AI-related revenue from AIX and AI DC business divisions grew by 19% year-on-year.

This year, SKT plans to invest in AI and challenge full-scale AI monetization based on KRW 2.3 trillion in cash and cash equivalents. This is where the synergy of Kang Dong-soo, Head of PM, who is skilled in new business and investment strategy, is needed. Additionally, he is expected to serve as a bridge between group companies such as SK hynix and SK C&C in promoting the AI infrastructure strategy business emphasized by CEO Ryu Young-sang.

On March 24, SKT made a strategic investment in "Together.ai," a global AI optimization startup, continuing its investments for AI business advancement. At MWC in Barcelona earlier this month, SKT signed an MOU with Elice Group for cooperation in AI data center modular fields and declared collaboration with Schneider Electric in AI data center systems.

The AI agent business, key to AI monetization, will begin full-scale revenue realization through "A dot Biz," an AI B2B agent set to launch this year. Recently, SKT announced the enhancement of A dot through collaboration with Google, and plans to launch "Aster (A*)," targeting the North American market, within the year.

CEO Ryu Young-sang also expressed his willingness to invest in and develop businesses with various companies for future AI service advancement.

At the shareholders' meeting, Yoo emphasized, "This year, we will become an 'AI provider' that generates revenue, focusing on three core areas: AI data centers, AI B2B, and AI agent A dot. It's time to prove AI performance to the market. We will show actual results and gain market recognition through AI investments and business collaborations."

He added, "It's difficult and impossible for SKT to secure all capabilities independently in the AI era. We will cooperate with various companies to build a Korean-style AI ecosystem, just as we are achieving tangible results through partnerships with Perplexity, Anthropic, and others."

Kim JaeHun (rlqm93@fntimes.com)