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En-core

SK Networks closes acquisition of data management leader ‘en-core’∙∙∙ Upgrading to AI-enabled value chain

- Closing acquisition of ‘en-core,’ a full-stack data management solution provider - “We will boost the profitability of SK Networks and strengthen it as an AI-enabled business-oriented investment model” Implementing an investment strategy to link innovation of its business portfolio with future growth drivers in a bid to highlight its identity of a ‘business-oriented investment company,’ SK Networks closes the acquisition of ‘en-core’ to enhance its company-wide foundation for AI businesses. SK Networks (CEO: Ho Jeong Lee) announced on the 6th that the company fully paid 95.1 billion 10 million won to buy 88.47% stake in en-core, a data solution and consulting service provider. The deal was closed in about three months after the Board resolution passed in July. The closing of the deal was celebrated on the day at SK Network’s head office in Samil Building by key management leaders including CEO Ho Jeong Lee of SK Networks, President Sunghwan Choi of SK Networks’ business division and CEO Lee Hwa Sik of en-core. Accommodating en-core, a leading data management solution provider in Korea, as its subsidiary, SK Networks can expect to secure stable revenue stream and firmly establish data-empowered governance platform. Furthermore, the company can put spurs to the deployment of company-wide AI-centric value chain. Accredited with 27-year-long business history, en-core is representative of data management consulting and solution sector, serving over 500 clients in various industries from communications to finance and mobility. Notably, in terms of data management service which is one of its key business domains, en-core has entrenched a business presence differentiated from competitors, offering Korea’s one and only full-stack service platform consisted of nine different solutions for modeling, _data and quality management to name a few. Leveraging such a vantage point, en-core posed 29.5 billion won in sales and 6.5 billion won in operating income last year, which foretells even more positive growth trajectory in line with the increasing demands of corporations for integrated data management amid the explosive growth of AI technology and cloud business. With its footprints across a variety of industries including ICT, home appliance rental, mobility and hotel, SK Networks is expected to harness the technological prowess of en-core in upgrading its data management system to pave way for evolution towards an AI company. Starting off as a subsidiary of SK Networks, en-core will soon announce a corporate vision containing its strategic orientation. SK Networks vows to further enhance the business competitiveness of en-core and advance its business-oriented investment company model on AI technologies. “We will help en-core expand its business model to encompass data analytics and venture overseas into Southeast Asia and Japan beyond Korea,” said CEO Ho Jeong Lee of SK Networks. “SK Networks will use synergy with en-core to better inform its business portfolio of data assets available at subsidiaries to transform itself into an AI company.” [Photo caption 1] SK Networks has completed the payment of 95.11 billion won for the acquisition of an 88.47% stake in en-core, a data solutions and consulting company. On the 6th, a commemorative ceremony was held at the Samil Building. In the photo from the event, there is Ho Jeong Lee, CEO of SK Networks (center), Lee Hwa Sik, CEO of en-core(left), and Shin in soo, CEO of _-M(right). [Photo caption 2] At the SK Networks-en-core stake acquisition contract commemorative event held at the SK Networks Samil Building on the 6th, there were various representatives from both companies, including Ho Jeong Lee , CEO of SK Networks (fourth from the left), Sunghwan Choi, COO of SK Networks (third from the left), and Lee Hwa Sik, CEO of en-core. (fifth from the left).

En-core

SK Networks acquires En-core, a data solutions and consulting firm, in an evolution towards becoming a Data-driven Company!

- Resolved on acquiring a controlling stake of 88.47% in En-core representing the data management solutions industry - Taking note of the target company’s strengths in full-stack data management solutions & growth potential of the industry - Integrating data infrastructure of the parent company and its subsidiaries… expecting growth in the AI sector Continuing to invest in promising industries associated with significant future growth potential, SK Networks has decided to acquire En-core, a company that is spearheading the data management market of Korea. The strategic acquisition is aimed at strengthening data management that underpins customer services, facilitating infrastructure integration across the parent company and its subsidiaries, and creating synergy with cutting-edge technologies such as AI (artificial intelligence). SK Networks (CEO: Ho Jeong Lee) announced that its board met on the 21st to approve the purchase of 88.47% stake (213,304 shares) of En-core Co., Ltd. at 88.47 billion won. Due diligence will be conducted going forward and follow-up steps including the signing of a stock purchase agreement will be wound up within this year. A specialized data company incorporated in 1997, En-core engages in data management consulting and solution business covering a variety of partners. When it comes to data management solutions accounting for its core business, En-core boasts of an unparalleled industry-leading competitive edge with its full-stack service portfolio. It is the only company in Korea offering nine different solutions across the entire spectrum of data management including modeling, _data, and quality management. En-core serves over 500 customers in various industrial domains such as telecommunication, finance, and mobility. SK Networks’ acquisition was driven by the expectation of a high growth potential of the data industry besides the aforementioned strengths of En-core. According to a release by the European Commission last year, the global data industry has posted 12% YoY growth on average from 2018 to 2022, with even higher growth rate (13%) likely to be seen by 2030. The Korea Data Agency (KDA) also expects the domestic data market to grow on annual average of 13% by 2028, another testimony in favor of a bright prospect of the industry. Upscaling its presence as a business-oriented investment company, SK Networks has continued to invest in promising data and AI-related tech firms in Korea and elsewhere since 2020, including hyper-scale datacenter funding to AI-based device startup Humane, unmanned tractor automation solution provider Sabanto, and smart farm startup Source.ag to name a few. SK Networks even discussed possible collaboration initiatives with OpenAI CEO Sam Altman in June. Deciding to acquire En-core in consistency with such moves, SK Networks is expected to access a new revenue stream associated with unrivalled prowess in data management technology which will improve the value of its business portfolio, as well as creating synergy by integrating data infrastructure of the parent company and SK Rent-a-car, SK Magic, SK Electlink, etc. Moreover, access to big data will lead to more success in the AI sector and additional investment opportunities. “As businesses are using data for increasingly more sophisticated applications, data management, though invisible, will be regarded as a key foundational business service, irrespective of industries,” an official at SK Network said. “We will evolve towards becoming a Data-driven Company strong in data management by enhancing services interfacing with AI at enterprise level.”