SK Telecom pointed out that AI-related business areas will be grouped into B2C AI, B2B AI, digital platform services, and AI data center operations.
In summary, here’s what you need to know:
Two-line structure of MNO and AI – SK Telecom aims to create a personalized CIC to suit each company’s needs, rebuild trust in communications services, and deliver measurable AI results.
Consolidate functions into MNO CIC – The reorganized marketing, corporate and network structure is aimed at strengthening core competitiveness and stabilizing performance.
AI CIC moves to flexible execution – Project-based teams, expanded AI business units, and enhanced technology development are aimed at supporting short-term results and long-term capability building.
South Korean telecom operator SK Telecom has announced an organizational overhaul centered on two company-in-company (CIC) structures: one for its core mobile network business (MNO) and one for its AI business, the telco said in a release.
Jeong Jae-hong, CEO of SK Telecom, said, “The CIC system is our choice to establish business methods and decision-making systems that are optimized to suit the characteristics of MNO and AI businesses.” The executive added that the new structure should help “restore customer confidence in the MNO business and generate tangible results in the AI business.”
Based on the restructuring plan, MNO CIC will focus on restoring user trust by consolidating essential functions across product, service, and network departments and strengthening its competitiveness. Marketing will be reorganized around product lines and sales, and enterprise services will be focused on more competent technical support. The company said its network team will be reorganized to better automate, execute digital transformation and collaborate with existing operations.
The Korean telco’s mobile business was negatively affected by a data breach that affected all customers in the mobile sector.
Meanwhile, AI CIC, launched in September, will focus on generating short-term business results. It operates as a flexible project-based structure that can be quickly reorganized according to market conditions. AI-related business areas are categorized into B2C AI, B2B AI, digital platform services, and AI data center operations.
The South Korean carrier also said it plans to expand its integrated security center, create a new communication center that combines public relations and external relations, establish a general advisory center, and restructure its corporate center to integrate more strategic functions under the company’s CFO.
According to recent reports, the South Korean carrier will spend 5 trillion won ($3.6 billion) on AI over the next five years, with the aim of generating at least the same amount of annual revenue from AI services by 2030. The company also plans to incorporate AI into its internal systems and infrastructure through what it calls a full-scale AI transformation (AX).
SK Telecom previously announced a strategic partnership with US AI company OpenAI.
The partnership follows the opening of OpenAI’s Korean office in Seoul on September 10 and highlights the Asian country’s growing role in global AI development. As part of the agreement, the partners also plan to expand beyond B2C to collaborate on B2B services and expand the potential for group-wide initiatives across the SK Group.
