The largest mobile operator in South Korea, SK Telecom (SKT), and the leading messenger provider, Kakao, agreed a share-swap arrangement as part of a strategic alliance to collaborate across a range of sectors.
Under the agreement, SKT will sell KRW300 billion ($256 million) worth of shares to Kakao and acquire newly issued Kakao shares valued at the same amount. The transaction, scheduled for 5 November, will give SKT a 2.5 per cent interest in Kakao, which will take a 1.6 per cent stake in SKT.
The companies agreed to work closely in mobile network operations, e-commerce, digital content and future ICT. They will first establish a synergy committee led by Ryu Young-sang, head of SKT’s MNO division, and Yeo Min-soo, co-CEO of Kakao.
In a statement, SKT said the companies aim to improve customer experience by combining its mobile service with Kakao’s messenger platform. They also plan to cooperate in specialised services for 5G.Subscribe to our daily newsletter Back