Burbank, California and Seoul, Korea; May 12, 2010
SK Telecom (NYSE:SKM), a leading telecommunications service provider in Korea, and The Walt Disney Company (NYSE:DIS), through one of its subsidiaries - Disney Channel International (DCI), today announced the intent to form a joint venture to launch Korean-language Disney-branded channels in South Korea. This will be the first ever joint venture by The Walt Disney Company to launch Disney channels anywhere in the world.

As a part of the proposed agreement, the joint venture company plans to launch Korean-language versions of Disney Channel and Playhouse Disney Channel targeted at kids and family in South Korea. These two channels will be available in HD multiplex as well as SD format over cable, direct-to-home and IPTV platforms and related on-demand digital media services in South Korea. Anchored by Disney’s much-loved characters and content for kids and families, the channels will air a significant proportion of locally produced, Korean-language programming. The launch of the channels is slated spring 2011 pending regulatory approval from the Korea Communications Commission.

SK Telecom will be the majority (51 per cent) shareholder in the joint venture company and will bring to the partnership its expertise in mobile, IPTV and digital media platforms; operational experience and business expertise as one of the largest conglomerates in South Korea. In return for its 49 per cent stake in the joint venture company, The Walt Disney Company will provide its globally reputed portfolio of kids and family’s targeted content, marketing expertise and local-content production and acquisition support.

SK Telecom’s President and CEO Man-won Jung said, "The joint venture with Disney carries significant meaning, especially considering the business environment of nowadays where customers consume content not only through television, but through an array of devices including mobile handsets, laptop computers, and tablet PCs. In the future, by forging a close strategic alliance with Disney, we hope to create more opportunities between the two parties."

"South Korea is one of the most exciting digital media markets in the world. Disney’s creativity and innovative content, combined with SK Telecom’s leading global expertise in digital media and telecommunications, present a unique offering that meets the growing consumer appetite for quality family entertainment where and when they want it," said Andy Bird, Chairman, Walt Disney International.

Based on the establishment of the joint venture, SK Telecom will deepen its strategic alliance with The Walt Disney Company. The combination of SK Telecom’s reach and expertise in the local Korean market and Disney’s award winning family content will enable the building of a robust portfolio of quality family entertainment to be enjoyed by South Korean viewers.