SK Telecom (NYSE: SKM) and KaKao, a leading mobile lifestyle platform company in Korea, today signed a strategic partnership and will engage in KRW 300 billion stock swap transaction.

SK Telecom will purchase new shares of Kakao (2.18 million shares) with its treasury sharers (1.27 million shares). After the stock swap transaction, SK Telecom will hold a 2.5% stake in Kakao, and Kakao will have a 1.6% stake in SK Telecom.

Through the partnership, the two companies will closely collaborate to create synergies in mobile network operation, commerce, digital contents and future ICT. To accelerate this, they will establish ‘Synergy Committee’ headed by Ryu Young-sang, Vice President and Head of MNO Business of SK Telecom, and Yeo Min-soo, co-CEO of Kakao.  

In mobile network operation business, the companies aim to maximize customer experience and benefits by combining SK Telecom’s mobile service and benefits with Kakao’s messenger platform. They also plan to cooperate in specialized services for 5G.

In commerce, SK Telecom and Kakao will collaborate to strengthen their services to provide customers with a new shopping experience based on cutting-edge ICT including AI.

In digital contents, the two companies plan to increase their competitiveness by combining SK Telecom’s media platform and Kakao’s digital contents power.

In future ICT, SK Telecom and Kakao will promote mid-to long-term cooperation in areas including AI, IoT and finance.