SKT Growing 'T Universe'... CEO Yoo Young-sang "External Collaboration and Membership Expansion"

Revealed in Meeting with Reporters Immediately After the General Meeting of Shareholders on the 25th

Yu Young-sang, CEO of SK Telecom, is explaining last year's business performance and management vision at the 38th General Meeting of Shareholders held on the 25th at SK-T Tower in Euljiro, Seoul. Photo by Cha Min-young

[Asia Economy Reporter Cha Min-young] Yoo Sang-young, CEO (President) of SK Telecom, announced plans to expand external collaborations and diversify memberships this year with the goal of increasing sales and transaction volume of the subscription service 'T Wooju'.

After the shareholders' meeting held on the 25th at SK-T Tower in Euljiro, Seoul, CEO Yoo told reporters, "T Wooju recorded total transaction volume (GMV) sales of 350 billion KRW last year," adding, "If we strengthen product competitiveness and marketing this year, GMV will grow significantly more than last year."

Launched around September last year by SK Telecom, T Wooju is a comprehensive subscription package service centered on e-commerce services such as 11th Street and Amazon overseas direct purchase services. It boasts differentiated infrastructure including an advanced billing system and customer touchpoints (POC) covering both online and offline channels. The first-year GMV of 350 billion KRW slightly exceeded the initial target of 300 billion KRW. The company has set a GMV target of 8 trillion KRW by around 2025.

Regarding the breakeven point (BEP), CEO Yoo said, "This is not a business that generates immediate profits, but we expect profits to come naturally as the scale grows," adding, "The current focus is on transaction volume and sales."

He also left open the possibility of external collaborations with large overseas operators like existing partner Amazon. He stated, "This year, we are considering various directions including strengthening product competitiveness through external collaborations, enhancing convenience for customers, and launching diverse memberships."

He expressed regret over the stock price decline following the SK Square-SK Telecom spin-off at the end of last year. Currently, SK Telecom's stock price is 57,300 KRW as of the closing price on the 24th, falling short of 60,000 KRW. CEO Yoo said, "Dividends remain the same, but shareholder value originally around 20 trillion KRW has dropped to 12 or 13 trillion KRW despite the split, which is regrettable," but emphasized, "I believe this is a factor that can normalize."

He added, "In the mid-to-long term, as growth in media, enterprise sectors, and AI services becomes visible, the stock price will rise significantly," and "It will happen over time."

When asked about the biggest achievement at the 'Mobile World Congress 2022' held in Spain last March, he replied, "Our 'Ifland' service attracted a lot of interest from telecom operators who expressed strong desire to collaborate," adding, "Going forward, if a telecom operator develops this well, it could be grown together with major global telecom operators, which seems to be the greatest achievement."

Meanwhile, at the shareholders' meeting, CEO Yoo explained the management vision of "evolving into an AI-based service company in the SKT 2.0 era" along with strengthening environmental, social, and governance (ESG) management policies, reflecting 2021 performance.

The shareholders' meeting approved agenda items including ▲finalization of 2021 financial statements ▲appointment of internal and external directors and audit committee members ▲partial amendments to the articles of incorporation. The cash dividend was finalized at 3,295 KRW per share, including quarterly dividends paid since the second quarter of last year. Jang Jong-ryeol, CSPO (Chief Safety and Health Officer), was appointed as an internal director, and Kim Seok-dong was reappointed as an outside director and audit committee member. The business purposes were expanded to include MyData business, medical devices, and veterinary medical devices, and the agenda for granting stock options was also approved.

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