Infrastructure, models and services expand at the same time as business transformation accelerates
Active partnerships with Schneider and AWS help drive shares to nearly double from the start of the year
Jung Jai-hun, CEO of SKT, delivers a keynote speech at the AI DC conference held in Barcelona, Spain, on March 2. <SKT>
[Insight Korea = Shin Kwang-ryeol]
SK Telecom is entering a phase of market revaluation not just as a telecom stock, but as an AI company. The view is that market expectations are beginning to materialize around the AI initiatives being pushed by SKT CEO Jung Jai-hun.
According to industry sources, SKT shares rose as high as 100,100 won during intraday trading on the 15th, breaking above the 100,000-won level. It marked the first time since the company’s 2021 corporate split that SKT had crossed into “100,000-won Telecom” territory. Compared with the start of the year, when the stock had been hovering in the upper-50,000-won range, the market’s assessment of the company’s value has risen sharply.
At the center of that change is Jung’s “AI Native” strategy. AI Native is a company-wide strategy that goes beyond simply applying AI to existing telecom networks and instead redesigns networks and services across the board around AI.
At a press briefing held during MWC26 in Barcelona in March, Jung made clear his intention to shift the company to an AI-centered structure, saying, “AI is not just a new business, but an essential strategy for survival.” Analysts say that message resonated with the market and helped fuel expectations for a transformation in SKT’s business structure, which in turn was reflected in the share price.
AI Native strategy moves into full swing with data centers at the forefront
In practice, SKT has been rapidly expanding AI-related investment and business activity under Jung’s leadership. The company is pushing on multiple fronts at once, investing in AI facilities while also upgrading its in-house AI models and expanding service applications.
One of the central pillars of that strategy is its focus on AI data centers. SKT is working with global companies including Schneider Electric to introduce a modular, or prefab, data center model integrating servers, power and cooling into its own facilities, with the aim of improving both construction speed and cost efficiency. The move is seen as more than a simple capacity expansion, but rather as a strategy to secure the upper hand in the competition for AI computing resources.
At the same time, the company is speeding up efforts to raise the real-world utility of its AI technology, including expanding customer service and enterprise solution applications based on its in-house large language model, A.X. By simultaneously pursuing infrastructure investment, model development and service deployment, SKT aims to improve the completeness of its AI business.
In addition, the SKT consortium advanced to the second stage of a national flagship AI project, demonstrating its technological competitiveness. It is also moving ahead with business expansion through projects such as building an AI data center in Ulsan in cooperation with Amazon Web Services. Because the company is going beyond strategic messaging and translating plans into concrete projects and investments, it is also winning positive marks for execution.
In a report released on the 9th, Kim Tae-hyun, an analyst at IBK Investment & Securities, said, “SKT’s B2B businesses, including AI data centers and cloud services, are expected to drive earnings improvement,” adding, “In particular, data center utilization rates are rising, and related revenue is also projected to exceed 160 billion won.”
Jung’s next task is AI monetization, with trust recovery and stronger security also key
The next challenge is to firmly enter the monetization phase, where returns from AI investment are translated into actual revenue and profit. If businesses the company has been building, including data centers, large language models and AI services, begin making a meaningful contribution to earnings, the current upward trend in valuation is expected to gain further momentum. In particular, a key variable will be how quickly the company can build and establish a business model in the B2B market that combines AI infrastructure with services.
Strengthening customer trust and security competitiveness is also seen as a parallel task. Expanding AI-based services broadens the scope of data usage while at the same time increasing the responsibility to protect it. Analysts say that whether the company can secure trust may determine the direction of its long-term growth.
An industry official said, “If the market confirms that AI investment is actually translating into profits, the revaluation of the company could move up another notch,” adding, “Ultimately, the key lies in how quickly SKT can connect its AI capabilities to commercialization.”
-This article was translated by ChatGPT. (이 기사는 챗GPT가 번역했습니다.)
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