SK Telecom (NYSE:SKM) announced today that it signed a Memorandum of Understanding (MOU) with China Unicom to cooperate in strengthening their competitiveness in the telecommunications industry and promoting new growth businesses.

The MOU signing ceremony took place at the Belmond Mount Nelson Hotel located in Cape Town, South Africa, where the GSMA Board Meeting is being held, and was attended by Jang Dong-hyun, President and CEO of SK Telecom and Lu Yimin, President and Vice Chairman of China Unicom.

Under the MOU, SK Telecom and China Unicom will work closely in diverse areas such as 5G technology, international roaming, platform, and startup support to enhance customer benefits and lead the development of the overall ICT industry.

With the aim to further strengthen their competitiveness in the telecommunications industry, SK Telecom and China Unicom agreed to cooperate in the development of 5G network technologies. The two companies plan to share information and conduct joint studies to promote standardization and commercialization of 5G. They will also work together to launch competitive roaming services that deliver greater benefits to their subscribers. Given the active tourism exchange between Korea and China*, the cooperation between the two companies will make roaming more convenient and affordable for travelers.

*According to the Korea Tourism Organization, a total of 6.13 million Chinese visited Korea, and 4.18 million Koreans visited China in 2014.

Through the MOU, SK Telecom and China Unicom will also collaborate for the success of new growth businesses. The two companies will share information on their platforms, which includes platform-related products/services and OTT services, and work together to create market opportunities. SK Telecom expects to gain a valuable opportunity to introduce its Next-Generation Platforms to the Chinese market.

Moreover, SK Telecom and China Unicom agreed to cooperate in building a startup ecosystem. While sharing their knowhow in nurturing ventures and startups, the two companies will create a cooperative venture incubator program to jointly conduct the overall process of incubation, from search for venture items to their market introduction.

“China Unicom will collaborate with SK Telecom to generate tangible outcome that will lead to enhanced customer value and future growth of the two companies.” said Lu Yimin, President and Vice Chairman of China Unicom.

“Through the MOU, SK Telecom and China Unicom will be able to offer differentiated and innovative services to customers,” said Jang Dong-hyun, President and CEO of SK Telecom. “We will continue to make efforts to develop new joint business opportunities to not only achieve growth of both companies but also contribute to the economic development of Korea and China.”