SK-Amazon Big Deal 'Keyman', Park Jung-ho... Writing Financial Story (Comprehensive)

[Image source=Yonhap News]

[Asia Economy Reporter Seulgina Jo] "It must be beneficial to the country and bring convenience to the people."

The 'key man' who made the 'global big deal' between SK Group and Amazon possible was Park Jung-ho, CEO of SK Telecom, known as the right-hand man of SK Chairman Chey Tae-won. It is reported that Park emphasized the 'country and the people' when explaining the significance of this big deal to his close associates.

Having contributed to the acquisition of Hynix during the height of the semiconductor crisis, he has been promoting bold 'super (超) cooperation' that transcends industry barriers since his appointment as CEO of SK Telecom. Notable examples include the AI alliance with Samsung Electronics and Kakao, and mobility investment cooperation with Uber.

Industry insiders evaluate that Park is leading the implementation of Chairman Chey’s management theme, the 'Financial Story.' The Financial Story is a management strategy aimed at enhancing overall value by presenting growth strategies and future visions to customers, investors, and the market. The SK-Amazon big deal, which Park positioned himself as the key man, is an extension of this strategy. ▶See the November 13th editions on pages 1 and 3 ([Exclusive] SK Joins Hands with Amazon) for reference

Park Jung-ho’s Continuous Interest in Amazon’s Moves

According to the business community on the 16th, Park, who has advocated for 탈(脫)telecommunications, has focused on Amazon as a benchmarking model for SK Telecom since shortly after his appointment. An industry official said, "Park has always had a special interest in Amazon’s business model," adding, "He had also predicted that several cooperative outcomes would emerge this year because of this."

SK Telecom has signed a share participation agreement with Amazon to innovate its commerce business, including its subsidiary 11st. Through this, Amazon can be granted rights to subscribe to new shares under certain conditions based on 11st’s business performance in the Korean market, such as its initial public offering (IPO).

Cooperation through equity investment has been the card Park has mainly used in recent years during collaborations or mergers and acquisitions (M&A) with major companies. This includes ▲share swaps with Kakao, ▲the merger between SK Broadband, a media subsidiary, and cable TV company T-Broad, and ▲business cooperation between the soon-to-be spun-off T map Mobility and Uber, all conducted in this manner.

Park plans to grow 11st into a 'global distribution hub platform.' He is known to have emphasized that 11st should be developed into a 'Korean-style Amazon.' An SK Telecom official said, "It will provide customers with a better shopping experience while creating a stepping stone for domestic sellers to expand overseas." The industry expects that super cooperation with Amazon, following Uber, will accelerate the 탈(脫)telecommunications of SK Telecom, the group’s core affiliate.

Writing SK’s New Management Theme: 'Financial Story'

Park’s moves, declaring innovation in various fields through super cooperation, align with the management theme Financial Story recently presented by Chairman Chey to the group’s CEOs. Rather than simply emphasizing financial results such as sales and operating profit, he is leading innovation by presenting concrete and sustainable future visions. This cooperation with Amazon is also evaluated as a stepping stone for SK Group to leap forward as a global leader in the era of the Fourth Industrial Revolution, beyond just e-commerce.

An industry insider said, "If Amazon lands in the domestic market as a 'predator,' it would inevitably deal a direct blow to the industry," adding, "This big deal was a 'masterstroke' that dispelled such concerns at once while enhancing business value for both sides."

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