SK Telecom (SKT), Korea’s leading mobile operator rapidly expanding its presence as an AI company, has announced a significant investment in Joby Aviation, a California-based firm specializing in electric vertical take-off and landing (eVTOL) aircraft. The investment amounts to USD 100 million, securing SKT approximately a 2 percent stake in Joby Aviation.
SKT and Joby Aviation have been engaged in a strategic collaboration since February 2022. This equity investment will further strengthen and expand their partnership in the Urban Air Mobility (UAM) sector, positioning SKT as a prominent player in the UAM business in Korea.
Joby Aviation possesses unparalleled technological capabilities in the development of eVTOL aircraft for UAM purposes. Their full-scale prototype holds the record for the fastest flight of any eVTOL aircraft to date, covering a distance of 241 km at a speed of 330 km/h. Additionally, Joby Aviation was the first eVTOL company to secure a G-1 (stage 4) certification basis with the FAA. They also collaborate with NASA and have a contract with the United States Air Force to deploy and operate their aircraft.
This investment opens the door for Joby to participate alongside SKT in Korea's "K-UAM Grand Challenge," a phased demonstration program led by the Korean Ministry of Land, Infrastructure and Transport, aimed at promoting the adoption of aerial ridesharing in Korea.
Furthermore, the partnership is expected to foster the development of additional collaborations within Korea's mobility ecosystem, led by SKT. Both companies have expressed interest in exploring broader cooperation opportunities in international markets in the long run.
As SKT rapidly evolves into an AI company, it actively promotes UAM, which leverages cutting-edge ICT technologies such as AI. AI will play a crucial role in various aspects of the UAM business, including aerial network communications and traffic control. SKT plans to harness its extensive array of AI technologies to popularize UAM services and enhance the ecosystem.
SKT has also unveiled its vision of transitioning from a mobile operator to a mobility operator, pushing the boundaries of mobility innovation.
Currently, UAM is gaining prominence as a new mobility service that can address traffic congestion and reduce carbon emissions. Numerous countries, including the US, UK, France, and Japan, are actively working toward launching UAM services.
In Korea, under the guidance of the Ministry of Land, Infrastructure and Transport, the K-UAM Grand Challenge will be implemented in two phases: the first in Goheung, Jeollanam-do, from August 2023 to December 2024, and the second in the Seoul Metropolitan Area from July 2024 to June 2025. Commercialization of UAM is scheduled for 2025.
“Based on cooperation with Joby Aviation, we will do our utmost to promote the UAM demonstration program and achieve UAM commercialization in Korea,” said Ryu Young-sang, CEO of SKT. “We will greatly reduce customers’ travel time with our UAM service and rapidly advance our UAM technologies to help turn Korea into a mobility powerhouse.”
“Our partnership with SKT places Joby in the best possible position to capitalize on the opportunity presented by the Korean market, where we continue to see a strong drive from the government to realize aerial ridesharing in Korea,” said JoeBen Bevirt, founder and CEO of Joby Aviation. “We’re grateful for SKT’s commitment to Joby and look forward to working with them as we develop a transformational air taxi service for Korea.”
