(Seoul, 27 May 2008) - SK Telecom announced today that it has signed a Memorandum of Understanding (MOU) with the Chinese Government to jointly build an ’International Digital Contents and Industrial Design Complex’ in Beijing, which aims to boost the growth of China’s future digital content and design industries. This world-class complex will be developed by SK Telecom in cooperation with companies such as SK Engineering & Construction and SK C&C.

In line with its goal to promote culture and local industries, the Chinese Government aims to build the new ’Beijing Culture City’ complex in the southeastern part of Beijing, which is designated as the Beijing Development Area (BDA). In collaboration with the Chinese Government, SK Telecom plans to develop the complex using latest technologies in order become the main center to nurture digital content and design industries.

With commercial 3G communication services soon to available in the local market, SK Telecom expects demand in the digital content industry to sharply grow, thus leading to increased global spotlight on the industry. This new partnership with the Chinese Government builds on an earlier cooperation involving TD-SCDMA development. The company said it plans to continue its contribution to the growth of China’s future industries by building an international industrial complex leveraging its expertise on communication infrastructure and content business.

The company also noted that the industrial complex would promote partnership between Korean and Chinese companies, thus facilitating further development of high quality digital content services to customers.

With the signing of the MOU, SK Telecom will establish a consortium with other SK subsidiaries including SK Engineering & Construction and SK C&C and invest USD 1 billion to build the vast 200,000-square meter complex by 2013. SK Telecom expects to attract to this complex various globally renowned companies and Chinese venture companies.

Ultimately, SK Telecom will create a ubiquitous environment with advanced IT network and facilities across the complex and provide content production studios and equipment as well as operate a one-stop service center that will provide customer support. Moreover, the ’Beijing Culture City’ will include a design academy to promote the development of industrial design and adopt a unique exterior style for each building housed in the complex, making itself a new landmark in the city.

Shin Bae Kim, CEO of SK Telecom, said "Recognizing the high growth potential of the Chinese digital content and convergence market, we have been expanding our content business in China by investing in TR Music, a recording company, and Magicgrids, a game service provider. With the establishment of the ’Beijing Culture City’, we look forward to seeing China’s rich cultural assets reinvented into new digital content products, such as games and video and eventually being exported to the global market along with TD-SCDMA technology."

The partnership ceremony, held at the Beijing Hotel, was attended by the local media and leading figures including Deputy Major of Beijing City Gou Zhong Wen (苟仲文), and Director of Beijing Development Zone Zhang Bo Xu (張伯旭).