SK Telecom unveils 2025 business reshuffle to boost global AI ambitions

December 05, 2024 10:23 AM

SK Telecom sign at their headquarters in Silicon Valley

SK Telecom announced plans to restructure the company in 2025, with the operator splitting seven business divisions to “create tangible results as a global AI company”.

CEO Yoo Young-sang said SKT will be reshuffled to centre its focus on two core areas: AI and communications.

“We will make 2025 a year of ‘execution’ that will focus on ‘communications’ and ‘AI’ to bring about tangible results in each of our core business areas,” Yoo said.

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SKT’s plan to focus on the convergence of communications and AI will be led by the seven major business divisions.

The new divisions include the MNO Business Division, the BWireline/Media Business Division, and the Enterprise Business Division, which will focus on its core competitiveness for the telecoms business.

The Adot Division, Global Personal AI Agent, or GPAA unit, AIX Business Division, and AI Data Centre Division will focus on increasing the company’s “execution power of AI and create tangible results.”

“In this reorganisation and executive appointments, we focused on reorganising the organisation into an execution-oriented system to achieve our vision, while also concentrating our capabilities on businesses and fields such as ‘communications’ and ‘AI,’” Yoo added.

SK Telecom has touted AI as its next big focus area, unveiling plans in November to build an “AI infrastructure superhighway” that features gigawatt-scale data centres across Asia and the Pacific.

Part of the operator’s 2025 restructure will see it consolidate its technology units, including its AI R&D Centre to support projects like next-gen AI models, digital twins, and vision-based AI systems.

SK Telecom said the reshuffle will “reduce organisational layers for faster, more agile decision making”.

“Through this reorganisation and executive appointments, SKT plans to continuously improve its corporate structure, solidify its telecommunications business, and produce visible results in its AI business to accelerate its goal of becoming a global AI company,” a company statement read.