SK Telecom Spins Off Mobility Unit... Seeking Independent Survival Path for 'T map' (Comprehensive)

[Asia Economy Reporter Seulgina Jo] As SK Telecom spins off its mobility business, 'T map,' the nation's number one navigation service with 18.5 million subscribers, is set to embark on a path of independent survival. It is tasked with expanding its ecosystem into a 'comprehensive mobility platform' encompassing not only simple navigation services but also artificial intelligence (AI) and autonomous driving. This move by SK Telecom, the leading telecommunications operator, is expected to bring significant changes to the entire domestic mobility market, which has been largely dominated by Kakao.

Transforming T map into a Comprehensive Mobility Platform

On the afternoon of the 15th, SK Telecom held a board meeting to discuss the establishment of a mobility subsidiary centered around T map. In a telecommunications market that has essentially reached saturation, the company is targeting mobility as a core future business to become a cash cow. It is reported that the newly established corporation will receive an investment of approximately 100 billion KRW from the global ride-sharing company Uber, making Uber the second-largest shareholder in the mobility subsidiary.

SK Telecom's decision to spin off its mobility business aims to accelerate the nurturing of new businesses in response to rapidly changing market conditions. At the heart of this is T map. With a 70% market share domestically, T map is the largest mobile navigation service in Korea, boasting 18.5 million subscribers and nearly 12.5 million monthly active users.

Park Jung-ho, CEO of SK Telecom, who has focused on the vast data accumulated by T map, has issued a special directive to "consolidate all imaginable mobility services into T map and grow it into a unicorn valued at over 1 trillion KRW." An SK Telecom official emphasized, "T map encompasses mobility, AI, big data, and 5G telecommunications, all of which are future growth engines." This is interpreted as a strong belief that the platform's scalability will increase further in the 5G era, characterized by ultra-high speed and low latency.

SK Telecom has already conducted experiments by integrating its core technologies into T map, including AI algorithms, ultra-precise location measurement solutions, and the AI voice assistant 'NUGU.' Following the launch of T map Taxi, T map Shopping, T map Gourmet Road, T map Public Transit, and in-vehicle integrated infotainment (IVI), the company plans to evolve T map into a 'super platform' capable of supporting personal mobility such as electric kickboards and comprehensive automotive services.

Through this, SK Telecom aims not only to maximize market influence as a comprehensive mobility platform but also to boost T map's revenue, which has been minimal despite its high market share. It is also expected to launch linked services that can create synergy with SK Telecom's existing businesses such as shopping (11st), online video services (OTT - Wavve), and music (Flo).

'AI Alliance' to Surpass Kakao? Mobility Becomes a Battleground

As SK Telecom fully enters the mobility market, significant changes are anticipated in the domestic mobility business, which has been largely dominated by Kakao Mobility. Kakao spun off its mobility business early on as Kakao Mobility, securing the market and successfully monetizing services centered around taxis. Apart from Kakao, most players in the market are startups.

Last year, SK Telecom and Kakao formed a strategic partnership by exchanging shares worth 300 billion KRW, but they have maintained a subtle competitive relationship in the mobility sector for some time.

Kakao Mobility, spun off from Kakao, is a strong competitor overlapping with most services provided by T map, including Kakao Navi, Kakao Taxi, and parking services. In navigation, T map has outpaced Kakao Navi with a powerful monthly user base, but in the taxi sector, except for a temporary increase in market share during conflicts between Kakao Mobility and the taxi industry, it has lagged behind. Attention is also focused on what kind of business will be pursued in the future as Uber, which faced government regulations after entering Korea, partners with SK Telecom.

However, industry insiders predict that SK Telecom and Kakao will initially cooperate to expand the ecosystem rather than engage in a destructive leadership competition in the mobility market. The earlier formation of an AI alliance is also seen as part of this effort.

This content was produced with the assistance of AI translation services.