Korea’s SK Networks partners with Malaysia’s Sunway on AI

South Korean trading company SK Networks Co. has joined forces with Malaysian conglomerate Sunway Group to work together on future growth sectors such as artificial intelligence to transform into an AI technology investment company.

SK Networks and Sunway signed a memorandum of understanding for cooperation, the unit of South Korea’s second-largest conglomerate SK Group said on Wednesday. SK Networks and Sunway plan to collaborate on AI sectors in South Korea and Malaysia while considering joint entries into other countries.

The two companies also agreed to mull establishing a joint venture between Sunway and SK Magic Co., SK Networks’ wholly owned home appliance and lifestyle solution rental subsidiary in Malaysia and possibly exchange stakes to deepen ties.

TO TRANSFORM INTO AI COMPANY

“We may cooperate on innovative AI products that SK Magic is developing while expecting a business model to develop and build AI systems within Sunway Group based on the technology of SK Networks’ US AI unit PhnyX Lab,” said SK Networks.

PhnyX Lab is SK Networks’ AI technology development unit in Silicon Valley, California.

The company is restructuring its business to focus on AI with an aim to triple its operating profit to 700 billion won ($508.4 million) in 2026 from 2023 by actively incorporating AI technologies into its mainstay businesses – rental, data management and hospitality.

Sunway, founded in 1974, works in the real estate, construction, education, healthcare, retail and hospitality sectors in about 50 countries.

The Malaysian conglomerate has been working with SK Magic’s unit in the Southeast Asian country.

Write to Hyeon-woo Oh at ohw@hankyung.com
 

Jongwoo Cheon edited this article.