[Shareholders Meeting] SKT Park Jung-ho "Heard a lot about selling 11st... Predicting a 'Commerce Revolution' in the second half"

[Asia Economy Reporter Seolgina Cho] "In the second half of this year, we will present a 'commerce revolution' through cooperation with Amazon."

Following ultra-cooperation with Amazon, Park Jung-ho, CEO of SK Telecom, who has entered the bidding war to acquire eBay Korea, declared a 'commerce revolution' centered on its subsidiary 11st.

On the morning of the 25th, at the SK Telecom regular shareholders' meeting held at T Tower in Euljiro, Seoul, CEO Park stated, "Due to COVID-19, non-face-to-face interactions have become routine, and online-centered consumer economic activities are accelerating." He predicted, "Online shopping has surpassed 30% of total shopping and will exceed half." The commerce sector is considered a core part of SK Telecom's non-telecom strategy along with media, security, and mobility.

In particular, CEO Park recently mentioned Coupang's listing on the New York Stock Exchange. He evaluated, "Coupang's 100 trillion won listing is a positive signal for the commerce business and also signifies the emergence of a strong competitor domestically." He added, "SK Telecom has been steadily preparing cooperation with Amazon since last year," and declared, "In the second half of this year, we will offer a new experience of global products that Korean citizens have never had and bring about a commerce revolution."

CEO Park emphasized the importance of countermeasures for alliances and mergers, saying, "The most frequently asked question after Coupang's listing was whether to sell 11st." 11st, which holds about a 6% share of the domestic e-commerce market, has long been considered a sore spot for SK Telecom and has been constantly surrounded by sale rumors. However, CEO Park, who has advocated for non-telecom, has consistently drawn a line against selling 11st, focusing on the growth trend in commerce and the potential for platform expansion linked to AI and other ICT competitiveness.

CEO Park expressed concern, saying, "Coupang is a competitor not only in commerce but also in media," and added, "(For SK Telecom as well) an integrated strategy is necessary." Currently, the market is also keenly watching whether SK Telecom will acquire eBay Korea. If SK Telecom acquires eBay Korea following ultra-cooperation with Amazon, 11st will instantly rise to become one of the big three. When asked about the intention to acquire eBay Korea, he replied, "We need to participate in a portfolio with influence and a structure that is not binding to flexibly execute the strategy," and added, "Since it is a matter of strategy, it is difficult to speak specifically."

Lee Sang-ho, head of SK Telecom's commerce division overseeing 11st, explained, "We will pursue a successful initial public offering (IPO)" and "differentiate by linking with SK Telecom and subscription services."

On this day, CEO Park repeatedly emphasized that since his appointment, the growth of new business sectors such as commerce, media, and security has become clear, evaluating, "We are growing healthily as a new ICT portfolio company, not just a simple mobile communication infrastructure company." He added, "The new business sector turned profitable in 2019 and recorded an operating profit of 320 billion won in 2020, accounting for 24% of the total consolidated operating profit, which is a significant change."

He also reaffirmed the plan to grow into an artificial intelligence (AI) platform company based on the powerful mobile network operator (MNO) infrastructure. CEO Park predicted, "SK Telecom will transform from the existing MNO to an AI company," and said, "Following the mobile era, the AI era will open for 10 to 20 years."

Regarding the group’s governance restructuring, he confirmed, "It can be executed this year." He stated, "It is an important duty to provide greater value to shareholders," and mentioned, "It will soon be materialized." He continued, "I do not think the market value is sufficiently reflected in the stock price compared to the portfolio," and emphasized, "This year, we will definitely implement measures to fully capture the portfolio value." SK Telecom faces the task of completing the transition to an intermediate holding company within the year due to the enforcement of the Fair Trade Act next year. Enhancing corporate value is essential for this.

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