Kim Shin-bae President of SK Telecom

Kim Shin-bae, president of SK Telecom (www.sktelecom.com) held a pres conference on Oct. 12 and pointed out the company's strategy to pursue sustainable growth over the next 10 years.

Mr. Kim said, "Creating a new driving force for growth is inevitable to push for sustainable growth for the next 10 years. We will attain sustainable growth through a strategy based on new value management."

At the conference, Mr. Kim also said that the company will build infrastructure to support small and medium-sized companies as a means of expanding their partnership with SK Telecom.

The growth strategy of SK Telecom through new value management revealed by Mr. Kim focuses on securing sustainable leadership in the company's core business, identifying and fostering of new projects, and active development of global business.

Mr. Kim said, "The mobile phone market has already entered the maturity stage. So, it is difficult to expect a high growth in a core business sector of the past. However, through sustainable development of new products suitable for the Convergence/Ubiquitous environment following an expanded supply of high function complex terminals, we can enjoy profit increases continuously in the wireless Internet sector and pursue a sustainable growth in our core business."

On the new projects, he said, "On a short-term period, new projects through our subsidiaries will form an important axis of SK Telecom. In a mid and long-term strategy, however, we will actively develop new growth-oriented projects

related to Convergence/Ubiquitous, which will lead the growth of the future SK Telecom. Among the projects are communication & broadcasting convergence-related project, wire & wireless convergence projects, such as WiBro and BcN, and Ubiquitous-related projects such as Telematics, digital home, and RFID."

Related to growth strategy through its subsidiaries, he said, "The terminal project of SK Teletech will pursue the profitability-focused Smart Niche Player, rather than the external volume-centered growth. We will also place focus on strengthening synergy effects with SK Communications, which is rapidly growing through Cyworld, and TU Media offering the satellite DMB service."

On the Global Biz, he said, "There is an indication that SK Telecom has remained in the domestic consumption market rather than seeking exports owing to the characteristics of its communication service, even though it possesses the world's top-level CDMA technology and service solution. However, we confirmed enough possibility in the global market through the successful business operation in developing countries, including Vietnam and Mongolia. To foster Global Biz as the next-generation driving force for growth, we also reinforced relevant organization and manpower," hinting possibility of expanding Global Biz actively.

He said that the company is considering the possibility of globalization for various projects on the communication value chain to minimize risk and explore the global market. By making the use of existing experience and Core Capability accumulated at home, it plans to build Biz Portfolio, which can create synergy effects between major communication businesses. It also plans to pursue regionally balanced portfolio, including advanced and developing countries.

Related to the construction of infrastructure to support small and medium-sized companies, President Kim said, "The preferential settlement standards we announced last September for small and medium-sized companies are designed to extend financial assistance to smaller companies that trade with our company. The construction of infrastructure to support small and medium-sized companies, meanwhile, is to build actual infrastructure for supports for small ventures under the recognition that competitiveness of our business partners is directly linked with that of SK Telecom. We expect activation of the IT business through the active supports for our business partners."