SKT Strengthens AI Business and Emphasizes ESG Management
KT Announces Transformation into a Digital Platform Company
U+ Expands Business by Securing Content and Technology


The New Year's messages from the heads of the three major mobile carriers contained a common keyword. It is ‘de-communication’.

SK Telecom CEO Park Jung-ho held a non-face-to-face New Year's meeting on the 4th and emphasized, "Let's become a beloved big tech company through AI innovation and ESG (Environment, Social, Governance) management."

CEO Park Jeong-ho said, "AI must become the foundation for innovation in all of the company's operations and customer services," adding, "We must provide AI-based solutions optimized to meet customer needs based on the situation."

Additionally, he emphasized hyper-collaboration and openness between different businesses to drive innovation in the post-COVID era, and hinted at collaboration with domestic and international companies in various fields.

On the 4th, KT held a 'Live LAN New Year's Party' with about 50 employees, attended by CEO Ku Hyeon-mo and union leader Choi Jang-bok, at the KT East Building in Gwanghwamun, Seoul.

CEO Koo Hyun-mo said at the event that the company must strengthen its "ABC" capabilities, including AI, big data, and cloud, to drive future growth.

He said, "KT should transform into a digital platform company, or Digico, and build on its ABC strengths to take on new businesses such as media, content, robotics, and bio-healthcare."

LG Uplus CEO Hwang Hyun-sik told employees on the 4th, A video filmed at the 'Gap between Everyday and Uneveryday Life' complex cultural space in Gangnam, Seoul was delivered as a New Year's message.

In the video, CEO Hwang Hyeon-sik said, “In terms of (service) quality, we must provide a level that exceeds customer expectations,” and “We must focus on improving customer value, which is the essence of the telecommunications business.”

President Hwang, who said that the company must break away from the sales method and structure that prioritized price, and secure future growth engines through new businesses, said that the company must move beyond the sales method and structure that prioritized price.

To achieve this, he ordered the creation of a structure that would “secure quality content and expand advertising and subscription services in the consumer sector, and secure and commercialize competitive solutions in areas such as smart factories and autonomous driving in the B2B sector.”

◇ Platform over infrastructure

In November 2020, the three major mobile carriers saw a slight increase in telecommunications revenue, driven by the acquisition of a significant number of subscribers to expensive 5G plans. However, face-to-face businesses, such as terminals and hotels, saw a decline due to COVID-19. In the B2B sector, accelerated digitalization led to robust performance in areas such as AI solutions and IDC.

The three major carriers' core business is telecommunications. However, they have recently suffered trillions of won in losses due to 5G infrastructure construction and frequency reallocation. Furthermore, the high-capacity data transmission and reception infrastructure requires extensive equipment, which has hindered the return on investment. Furthermore, some analysts say the expanded infrastructure by the three companies has only benefited platform companies like Google and Netflix.

It seems natural that all three companies shared a commitment to new businesses beyond telecommunications in their New Year's addresses. Consequently, the key question will be how well the three companies can build an ecosystem in areas like cloud computing.