SK Telecom - Saudi Telecom Company Sign MOU for Strategic Cooperation on the Creative Economy Concept as a New Growth Engine

SEOUL, South Korea, March 4, 2015 /PRNewswire/ -- SK Telecom (NYSE: SKM) announced today that it signed a Memorandum of Understanding (MOU) with Saudi Telecom Company (STC) to collaborate on the development of the innovation capabilities in Saudi Arabia by benchmarking Korea's Creative Economy Concept. In addition, both companies agreed to explore development of mutually rewarding business opportunities in Saudi Arabia and potentially the region, especially in areas including digital healthcare, education and Smart Cities.

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The MOU signing ceremony was held on March 4, 2015 at the Four Seasons Hotel Riyadh, where the Korean-Saudi Business Forum took place, and was attended by senior executives from both sides, including Yu Jeong-joon, Chairman of SK Global Growth Committee, as well as high ranking government officials, including Choi Yang-hee, Minister of Science, ICT and Future Planning of Korea. Jang Dong-hyun, President and CEO of SK Telecom, signed the MOU on behalf of SK Telecom with Emad A. Al Aoudah, acting CEO of STC, on behalf of STC.

Under the MOU, SK Telecom and STC will benchmark 'SK Creative Economic Innovation Center*' and collaborate on the development of the innovation capabilities in Saudi Arabia with the aim to promote the creation of diverse mutually-beneficial business models between large companies and small startups in the Kingdom.

* In line with the Korean Government's Creative Economy philosophy, SK Group and the Government have jointly established a Creative Economic Innovation Center in Daejeon, Korea, to support the growth of startups and small-and medium-sized enterprises.

SK Telecom expects the partnership to serve as a vehicle where not only the two companies, but also venture companies of both countries can work together to develop innovative technologies and solutions, thus opening up new opportunities for growth in both markets.

Moreover, SK Telecom and STC have also agreed to share technological expertise and marketing knowhow in diverse areas to strengthen their business presence not only in Saudi Arabia but also in the overseas markets. SK Telecom will share its products and marketing capabilities in areas of smart cities, digital healthcare, smart learning, IoT, Lifeware (life+hardware/software) and BEMS (Building Energy Management System). Through business collaboration on these areas, STC expects to secure new growth engines, extending its reach beyond the telecommunications market.