SK Telecom to Spend $2.25 Billion on New Technology

SK Telecom said it will spend 3 trillion won ($2.25 billion) on the development of next-generation technologies and services by 2014 in a bid to revitalize Korea's stagnating ICT service and software industries.

SK Telecom CEO Man-Won Jung said the company will focus on technologies and services which have the potential to become a global standard and promote cross-industry convergence.

These include wired and wireless technologies including LTE, smart technologies such as smart grid, as well as ICT services including cloud computing.

Speaking at a press conference, Jung said he returned to SK Telecom after six years absence to find a dire situation. "[The] Korean mobile telecommunications market is experiencing stagnant growth and the situation is much more serious than what I thought from the outside," he said.

While Korean handsets hold 25% of the global market share, the software industry's revenue accounts for just 2% of the world's total, he added.

SK Telecom's four-pronged strategy will aim to secure technological leadership; develop new markets; promote globalization; and expand the use of ICT infrastructure among consumers, industries, business and government.

Before it's here, it's on the Bloomberg Terminal.