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SK Telecom’s Profits Surge on AI Business Expansion

Transition to AI services to bolster growth amid traditional telecom challenges
South Korea
s 017670.KO Mid and Small Cap 2000
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SK Telecom, South Korea’s leading mobile carrier, has announced a nearly 10% increase in operating profit for 2023, reaching 1.75 trillion won ($1.3 billion), driven by robust growth in its artificial intelligence (AI) business sectors. This performance underscores the company’s successful pivot towards becoming a dominant player in AI, complementing its traditional telecom services. The company’s net income and revenue also saw substantial increases, with net income up 20.9% to 1.15 trillion won and revenue growing by 1.8% to 17.61 trillion won.

Despite challenges in the 5G and wireless subscription growth, SK Telecom is not slowing down. It plans to further accelerate its transformation into an AI-driven service company, leveraging AI to enhance customer service quality and operational efficiency. The company’s focus will be on expanding its AI data center, AI enterprise, and AI semiconductor businesses, anticipating strong demand in these areas.

SK Telecom’s AI semiconductor subsidiary, Sapeon, introduced the X330 AI chip, marking a significant milestone in its AI infrastructure development. Additionally, the company aims to expand its global presence by forming partnerships with international telcos and tech firms, emphasizing its ambition to become a global AI service provider.

The company’s cloud business and a new B2B AI platform, Enterprise AI Market, reflect its strategy to innovate and lead in AI applications. With plans to further develop its AI services, including its personal AI assistant “A.,” SK Telecom is set on revolutionizing both its domestic and international market presence through AI-driven solutions and services.

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