SK Networks to spin off its automotive services, chemical trading divisions

Industry

SK Networks to spin off its automotive services, chemical trading divisions

Published: 07 Aug. 2024, 16:41

LEE JAE-LIM
lee.jaelim@joongang.co.kr

SK Networks' office building in Jung District, central Seoul [SK NETWORKS]

SK Networks will spin off two of its key business divisions in automotive services and trading to improve operational efficiency and focus on transitioning to AI technologies.

The board held an extraordinary shareholder meeting and approved the spinoffs on Wednesday. Tentatively named SK Speedmate and SK Trading, both will be fully-owned subsidiaries under SK Networks, a rental business and investment unit 43.9 percent owned by SK.

SK Speedmate is scheduled to be established on Sept. 1, and SK Trading on Dec. 1.

SK Speedmate will be an automotive maintenance brand that offers roadside assistance services, tire distribution and auto parts exporting. The company plans to develop AI-integrated business models based on its accumulated customer service data.

SK Trading, which focuses on chemical products, aims to enhance competitiveness by implementing systems that use AI to respond to the volatile economic environment.

The move is part of SK Network’s push to transition to an AI-centric business model, as well as to help facilitate each division’s growth under independent and efficient management systems.

In April, SK Networks set up an AI lab in Silicon Valley dedicated to advancing AI business models and fostering new talent. It has also made a series of investments in the AI device startup Humane that was co-founded by ex-Apple employees, as well as unmanned tractor automation solution provider Sabanto, smart farm startup Source.ag and Korean AI startup Upstage.

SK Networks President Choi Sung-hwan also heads the business unit of En-core, a local data solutions company, aiming to find new AI business opportunities utilizing En-core’s database.

BY LEE JAE-LIM [lee.jaelim@joongang.co.kr]