(Seoul, 15 May 2008) - SK Telecom announced that it will aggressively advance into the Chinese online gaming market by participating in the management of Magicgrids Networks, an online game service provider in China. By entering the high growth market, SK Telecom is poised to establish a strong foothold in the Asian online gaming market.

SK Telecom recently signed a strategic agreement with Magic Tech Network, a Hong Kong based company of Magicgrids Networks in Shanghai, China. According to the agreement, SK Telecom will invest USD 7.8 million in Magic Tech Network to acquire 30% of its shares, while actively participating in the development and publishing of online games and taking part in key decision making through board of director meetings.

Established in 2006, Magicgrids Networks has been developing and publishing advanced online games and is known for its high-quality game content and development capacity. Recently, the company successfully built a distribution and marketing network for nationwide publishing service in China. Magicgrids Networks also offers a number of award-winning services including "The Patrix", a shooting game honored by the industry with "The Most Creative Online Game Award", "Excellent Internet Company", and "New Game Leader in China Award".

SK Telecom said that online gaming is crucial in the new convergence industry along with music, citing that the revenue growth of the Chinese online gaming market has reached 82% and that total market volume has reached USD 1.17 billion as of 2007.

In China, online games claim the largest share of the Internet business and provides stable source of revenue for enterprises. SK Telecom expects that its advancement into the online game market will further strengthen its direction to expand its role in China’s Internet market.

SK Telecom aims to deliver sustainable growth to Magicgrid Networks by combining its expertise in game development, publishing, and global service with Magicgrids Network’s strong understanding and experience of the Chinese market and game development capacity. At the same time, SK Telecom expects to create synergy with the Korean game industry through outsourcing game content in China and establishing global distribution channel for Korean games.

Suk Hwan Lee, President of SK Telecom China Holding Company said, "This year marks the first year that SK Telecom entered the Chinese convergence market. Following telematics, music, and entertainment industries, now we are heading toward the Chinese game market. By participating in the management of Magicgrids Network, we aim to enhance our core competitiveness in the Chinese online gaming market and become a hub for the Asian game industry."