Seoul, Korea, 14 December 2009 – SK Telecom (NYSE:SKM) announced today that its board decided to take over a 49% stake (or 57,647,058 shares) in Hana Card Co. for some KRW 400 billion. The deal will make SK Telecom the second largest shareholder of Hana Card after Hana Financial Group Inc with 51% stake.

With the deal, the company expects to bring its services to a new level by adding ICT-based advanced services to its current mobile settlement business including T Cash, thereby securing an edge in tomorrow’s commerce market.

SK Telecom’s CEO Man-Won Jung said, "The partnership is aimed at introducing and expanding the use of mobile credit cards while promoting next-generation payment and settlement services. With this deal, the two companies will maximize business synergies so as to create a new telecommunications and finance convergence market."

Mobile credit card is a next-generation smart card that allows customers to use their mobile phones as credit cards and receive real-time information provided by card companies such as event notices and discount offers simply after inserting credit card information into their mobile phones.

It allows users to check credit card settlement information including details of credit card usage, remaining credit card limit and reward points as well as other real-time information like bank accounts and membership. At the same time, it provides optimal decision-making information based on user’s past purchasing record and location information while offering an integrated service that includes discount coupons, ads, membership and mileage points during credit card purchases.

All the stakeholders are expected to benefit from the widespread use of mobile credit cards: Customers will be able to receive information and benefits including coupons on their mobile phones; credit card merchants will be able to boost sales and attract more customers by using information such as consumer purchasing patterns; and card companies will generate greater sales with increases in micropayment transactions and number of merchants, reduce time for plastic credit card issuance and save costs of plastic credit card production, delivery and replacement.

SK Telecom plans to introduce mobile credit card and smart payment service in the second half of next year and deliver greater customer benefits by linking them with SK Telecom’s membership programs and SK Group’s OK Cashbag service.

Meanwhile, SK Telecom said it will later determine and finalize the number of its staffs to be dispatched to Hana Card by taking into consideration the number of employees requested by Hana Card and the result of its internal staff selection process.