Eager to move past this year’s cybersecurity disaster, South Korea’s SK Telecom (SKT) has announced the establishment of an artificial intelligence (AI) ‘company in company’ (CIC), led by CEO Ryu Young-sang. The new AI CIC aims to reach annual revenues exceeding 5 trillion won (KRW) (approximately US$3. 55 billion) by 2030. SKT has long positioned itself as an AI-driven company and, to align with this identity, has been adapting its corporate strategy while investing heavily in AI infrastructure, applications, and operations. Late last year, SKT overhauled its operations, portfolio, and organizational structure to emphasize its future focus on communications and AI services. The AI CIC, described by CEO Ryu in a recent Korean announcement as “an elite organization that unites the company’s AI capabilities, ” will consolidate these efforts. At a company-wide town hall meeting, Ryu emphasized the need for “internal AI innovation” to seize the “AI golden time, ” a period of rapidly evolving challenges and opportunities. He highlighted the importance of improving internal systems, organizational culture, employee AI skills, and AI business innovation to navigate this dynamic environment. Over the next five years, SKT plans to invest KRW 5 trillion (US$3. 55 billion) in the AI CIC, targeting annual revenues surpassing KRW 5 trillion by 2030. In 2024, SKT reported total revenues of KRW 12. 77 trillion (approximately US$9 billion). The CIC will oversee a wide range of AI-related operations, including SKT’s Adot (A. ) personal assistant service and the A. Biz platform for enterprise clients, the AI data center (DC) business, global AI partner investments, AI research and development, as well as messaging and authentication services.

The internal restructuring to establish this CIC is expected to be completed by October of this year. SKT also highlighted plans to consolidate its scattered AI technology assets to enhance the role of an ‘AI platform’ that supports AI technology and operations across the entire SK Group. Additionally, the company will pursue adaptable ‘AI models’ designed to meet diverse AI demands from government, industry, and private sectors. CEO Ryu declared: “SKT AI CIC will establish itself as Korea’s leading AI business across all domains, including services, platforms, AI data centers, and proprietary foundation models. Through these efforts, we aim to play a pivotal role in building the national AI ecosystem and contribute significantly to the success of Korea’s AI strategy. ” Importantly, Ryu urged SKT’s workforce to help the company “regain customer trust” by prioritizing innovation in AI, security, and operational excellence. This call to rebuild trust follows a severe data breach that compromised information of over 23 million SKT customers, resulting in financial penalties. In response, SKT has already committed $514 million toward upgrading security systems and protocols under its Accountability and Commitment Program, specifically designed to restore customer confidence. Looking ahead, Ryu expressed a desire to focus on SKT’s strong AI foundation: “Over the past three years, SK Telecom has achieved milestones such as acquiring 10 million Adot subscribers, selecting an independent AI foundation model, launching the Ulsan AI DC, and forming global partnerships through its AI transformation. With the AI CIC at the core, we will drive further AI innovation to restore customer and market trust and evolve into a leading global AI company. ”