SK Telecom and Kakao Corp. have been fiercely competing in the field of information and communication technology (ICT). Yet the two ICT giants have decided to enter all-round cooperation from telecommunications to commerce. To beef up solidarity, they will exchange equities worth 300 billion won.
SK Telecom and Kakao signed a strategic partnership at Kakao Headquarters in Pangyo on Oct. 28. They agreed to pursue cooperation in four areas -- telecommunications, commerce, digital content, and future ICT. The two companies will team up in the business, services and R&D sectors among others.
In particular, they are expected to maintain a close relationship as SK Telecom will own a 2.5 percent stake in Kakao while Kakao will have a 1.6 percent equity in SK Telecom.
However, they agreed to pursue common profits while continuing to compete in good faith in such business areas as navigation, mobility, and music download services.
SK Telecom and Kakao have established the Synergy Council to further promote business cooperation. Yoo Young-sang, head of SK Telecom’s business division and Yeo Min-soo, co-president of Kakao will take the helm of the integrated organization.