SK Networks Co. is pushing deeper into artificial intelligence through a new partnership with Malaysian conglomerate Sunway Group, marking the latest pivot by a South Korean trading company toward technology investments.
The unit of SK Group plans to collaborate with Sunway on AI development in both countries, with potential expansion to other markets, according to a Wednesday statement. The companies are also exploring a joint venture between Sunway and SK Networks’ appliance unit SK Magic.
SK Networks is betting on AI to drive growth, targeting an operating profit of 700 billion won ($508.4 million) by 2026 – triple its 2023 figure. The company’s Silicon Valley-based AI unit PhnyX Lab will play a key role in developing systems for Sunway’s diverse operations spanning real estate, healthcare and education across 50 countries.
The partnership reflects a broader trend among South Korean trading houses to reinvent themselves as technology investors amid shifting market dynamics. For Sunway, the deal provides access to SK Networks’ AI capabilities while potentially expanding SK Magic’s presence in Southeast Asia.
Neither company disclosed financial terms of the agreement.
