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Press Release
Shinbae Kim, the CEO of SKT, expressed strong confidence in SKT’s future at the press conference held on October 12, 2004. The CEO said that developing new growth engines is crucial to maintain continued growth and that SKT will attain this goal through strategies based on New Value Management. The main focus of SKT’s ’New Value Management’-based growth strategies are:
- Maintaining Leadership in Core Biz area
- Seizing New Business Opportunities
- Actively Enhancing Global Businesses
President Kim revealed his strong intention to maintain market leadership by saying, "As the cellular service market has already entered a mature stage, our core business area is not expected to grow as rapidly as it has in the past. However, we will keep developing and promoting new wireless Internet products that fit the convergence and ubiquitous market environment. This will ensure the steady growth of our core businesses. Our high penetration of the market for cellular handsets with sophisticated functions will help us strengthen our advanced wireless Internet services".
With respect to new business areas, the president stated, "Our subsidiaries will play an important role in implementing new businesses in the short term. In the mid and long-term perspectives, we will place the utmost emphasis on convergence/ubiquitous related businesses that are considered as SKT’s essential future growth drivers. These businesses include convergence of telecommunications and broadcasting, wire-line and wireless convergence businesses such as WiBro and BcN, as well as ubiquitous businesses such as Telematics, digital home, and RFID.
Our growth strategy through subsidiaries includes making sure that SK Teletech’s handset business will be a smart niche market player that focuses on profitability, rather than quantitative growth. SK Telecom will also concentrate on strengthening synergy effects with TU Media, the satellite DMB service provider, and SK Communications which is being rapidly developed through the ’Cyworld’ portal service.
President Kim also talked about the global business field when he said, "It has been pointed out that even though SK Telecom has the world’s best level of CDMA technological expertise and service solutions, the company has laid its business emphasis upon the domestic market rather than overseas markets due to the characteristics of telecom service. SK Telecom has been conducting overseas operations in developing countries such as Mongolia and Vietnam. Through successful business operations in those countries, we have verified our business potential in the global market. With this in mind, we have reinforced our organization and manpower with the aim of growing our global business into a significant future growth driver".
He also commented as follows, "SK Telecom is reviewing the possibility of globalization efforts in a variety of telecom businesses in order to advance into global markets while minimizing potential risk. To this end, we plan to utilize our core capabilities and business experience we have accumulated in the domestic market, and establish a business portfolio that can create synergistic effects between our main telecom businesses. We will also pursue a business portfolio that has a regional balance in advanced countries, as well as developing countries".
- Maintaining Leadership in Core Biz area
- Seizing New Business Opportunities
- Actively Enhancing Global Businesses
President Kim revealed his strong intention to maintain market leadership by saying, "As the cellular service market has already entered a mature stage, our core business area is not expected to grow as rapidly as it has in the past. However, we will keep developing and promoting new wireless Internet products that fit the convergence and ubiquitous market environment. This will ensure the steady growth of our core businesses. Our high penetration of the market for cellular handsets with sophisticated functions will help us strengthen our advanced wireless Internet services".
With respect to new business areas, the president stated, "Our subsidiaries will play an important role in implementing new businesses in the short term. In the mid and long-term perspectives, we will place the utmost emphasis on convergence/ubiquitous related businesses that are considered as SKT’s essential future growth drivers. These businesses include convergence of telecommunications and broadcasting, wire-line and wireless convergence businesses such as WiBro and BcN, as well as ubiquitous businesses such as Telematics, digital home, and RFID.
Our growth strategy through subsidiaries includes making sure that SK Teletech’s handset business will be a smart niche market player that focuses on profitability, rather than quantitative growth. SK Telecom will also concentrate on strengthening synergy effects with TU Media, the satellite DMB service provider, and SK Communications which is being rapidly developed through the ’Cyworld’ portal service.
President Kim also talked about the global business field when he said, "It has been pointed out that even though SK Telecom has the world’s best level of CDMA technological expertise and service solutions, the company has laid its business emphasis upon the domestic market rather than overseas markets due to the characteristics of telecom service. SK Telecom has been conducting overseas operations in developing countries such as Mongolia and Vietnam. Through successful business operations in those countries, we have verified our business potential in the global market. With this in mind, we have reinforced our organization and manpower with the aim of growing our global business into a significant future growth driver".
He also commented as follows, "SK Telecom is reviewing the possibility of globalization efforts in a variety of telecom businesses in order to advance into global markets while minimizing potential risk. To this end, we plan to utilize our core capabilities and business experience we have accumulated in the domestic market, and establish a business portfolio that can create synergistic effects between our main telecom businesses. We will also pursue a business portfolio that has a regional balance in advanced countries, as well as developing countries".