SKT Launches Independent In-House AI Company Aiming for 5 Trillion Won in Annual Sales by 2030

AI Divisions Consolidated into CIC
Yoo Youngsang, CEO of SK Telecom, to Lead CIC
Over 5 Trillion Won to Be Invested Over the Next Five Years
"Aiming to Become the Core Driver of AI Across the Entire SK Group"

SK Telecom is consolidating its artificial intelligence (AI) operations into a single in-house company, known as a Company in Company (CIC), to operate independently. The company plans to invest over 5 trillion won in the independent AI CIC over the next five years, aiming to develop it into the core driver of SK Group’s overall AI business.

On September 25, SK Telecom announced the launch of the AI CIC, stating that it aims to accelerate AI innovation by bringing together the company’s AI capabilities. The news was shared by CEO Yoo Youngsang during a company-wide town hall meeting held that day.

During the town hall meeting, CEO Yoo explained, “Given the rapidly changing AI landscape, both risks and opportunities coexist in this golden age of AI. To seize this moment, we need internal AI innovation from the perspective of users and AI business innovation from the perspective of providers. That’s why we are launching the AI CIC, a streamlined organization that unites our company-wide AI capabilities.”

With the launch of the CIC, functions and organizations such as the A. service, A. Biz service for enterprises, AI data center (AI DC) business, global AI alliances and investments, AI research and development (R&D), and messaging and authentication businesses will be reorganized under the AI CIC system. The proprietary AI foundation model project, for which SK Telecom was selected as one of five final consortiums, will also be managed by the CIC.

CEO Yoo Youngsang will concurrently serve as the head of the AI CIC, with detailed organizational restructuring planned for the end of October. The newly established AI CIC will adopt a lean organizational structure to enable agile responses.

Over the next five years, the AI CIC plans to invest approximately 5 trillion won in AI, with the goal of achieving annual revenue of over 5 trillion won by 2030. To this end, the company aims to establish a virtuous cycle system encompassing AI B2C (business-to-consumer), AI B2B (business-to-business), and AI infrastructure, corresponding to both demand and supply in the AI sector.

For AI B2C, the company will focus on expanding the domestic and international subscriber base for the A. service to secure a sustainable revenue structure. In AI B2B, the focus will be on boosting productivity and establishing references in manufacturing AI through agentic AI services such as A. Biz. The AI DC business will target global big tech companies, seeking to attract AI DC projects and take the lead in government initiatives.

Additionally, the CIC will strengthen its role as an AI platform supporting the AI technology and operations of both SK Telecom and the wider SK Group. Plans include integrating dispersed AI technology assets and developing flexible AI model strategies to respond to diverse AI demands from government, industry, and the private sector. The CIC will also pursue research and development in future growth areas such as digital twins and robotics, and expand domestic and global partnerships based on full-stack AI capabilities.

CEO Yoo emphasized, “SK Telecom’s AI CIC will establish itself as Korea’s leading AI company across all areas, including services, platforms, AI DC, and proprietary foundation models. Through this, we will play a central role in building the domestic AI ecosystem and contribute to the success of the national AI strategy.”

SK Telecom also announced its internal AI innovation plans, aiming to enhance competitiveness by incorporating AI into systems, organizational culture, and employee capabilities. First, employees with AI expertise will be deployed throughout the organization to strengthen AI capabilities. At the same time, the company will accelerate the AI transformation (AX) of all systems and infrastructure.

The mobile network operator (MNO) business will focus on optimizing and automating key work processes, while the network (infrastructure) business will pursue operational automation and enhance service stability based on intelligent networks.

SK Telecom will also introduce AI-driven work methods to improve productivity. The company plans to expand the internal application of A. Biz, operate internal systems such as AI Frontier and AI Board, and foster an AI-centric corporate culture.

Alongside the AI innovation announced that day, CEO Yoo called on employees to join efforts in three key innovation areas: AI innovation, security innovation, and fundamental competitiveness innovation, to help SK Telecom regain customer trust and achieve a new leap forward.

In the area of security, the company will strengthen security governance and establish a zero-trust information protection system, centered on the information protection innovation plan announced in July. Strategies include expanding the information protection organization and workforce, introducing advisory processes with domestic and international security experts and institutions, and prioritizing security above all else.

CEO Yoo stated, “Over the past three years, SK Telecom has laid the groundwork for future growth by transforming into an AI company, securing 10 million A. subscribers, being selected for a proprietary AI foundation model, launching the Ulsan AI DC, and building global partnerships. Centered on the AI CIC, we will achieve another wave of AI innovation, regain the trust of customers and the market, and advance as a global AI company.”

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