- Unveiling the Business-oriented Investment Company's Direction and Vision of 'AI Democratization' at Second AGM
- Implementation of AI Models in SK Networks and Investment Companies... Aiming for 700 Billion Won in Operating Profit within 3 Years
- Introducing Interim Dividend Plan After Significant Treasury Stock Cancellation... Pledging Active Profit Distribution to Shareholders

“Drawing from the innovative foundation of our company's business model, we will advocate for the 'Democratization of AI,' ensuring universal access to the benefits of AI technology and fostering a 'Civilization of Humanity' that resonates with the current era. By doing so, we are committed to perpetually enhancing the satisfaction of our diverse stakeholders collaborating with SK Networks. To realize this vision, we will harness the power of AI.Device." - Sunghwan Choi, SK Networks President & COO-

SK Networks, having transitioned from a general trading company to a rental business, now stands at the forefront of innovation across its headquarters and investment firms under the 'business-oriented investment company' model. Throughout this transformation, SK Networks has been driving innovation throughout its headquarters and investment companies, improving portfolios, boosting profitability, and achieving investment objectives. This endeavor has provided further clarity to its philosophy and vision, both rooted in the rapidly expanding realm of artificial intelligence (AI).

On February 16, SK Networks (CEO: Hojeong Lee) convened its 'Annual General Meeting for Institutional Investors (AGM)' at the Conrad Seoul Hotel in Yeouido. The gathering served as a platform to unveil the company's growth strategy as an AI-centered business-oriented investment company and to outline the direction of AI-driven innovation across its major ventures.

This marked the second edition of the event, following its inaugural session held last year. Attended by executives from SK Networks, key investment firms, and approximately 70 industry leaders.

■ SK Networks Takes Lead in 'AI Democratization' as AI-Centric Business-oriented Investment Company

Sunghwan Choi, SK Networks President & COO, opened the floor as the first speaker, emphasizing 'SK Networks, Innovation Accelerates' as the central theme for this year's AGM. Building on last year's pledge to act as a gatekeeper of global innovation, he underscored the company's resolve to expedite business innovation and execution. During his address, Choi shed light on the company's new vision: 'Civilization of Humanity through AI Democratization. By integrating AI into SK Networks' operations, the company aims to provide benefits to various stakeholders by making AI-related advantages more accessible to a broader audience. This commitment highlights SK Networks' ongoing dedication to fostering economic growth and advancing humanity through technology.

To achieve this goal, the company intends to bolster its expertise in AI-related software and hardware while introducing distinctive AI solutions (AI.Device) across diverse businesses, including SK Magic, En-core, and Walkerhill.

AI democratization is a trending topic in the global technology industry, as evidenced by NVIDIA CEO Jensen Huang during the '2024 World Government Summit (WGS)' in Dubai, United Arab Emirates (UAE) on February 12. SK Networks, which initiated its foray into AI-related business sectors by investing in a hyperscale data center fund in 2020, is strategically consolidating its company-wide capabilities with the vision of AI democratization to contribute to the advancement of humanity in an evolving era.

During the AGM, SK Networks also presented a plan aimed at bolstering shareholder value. Alongside the recent decision to raise dividends and cancel 6.1% of treasury stock during a board meeting, the company disclosed its intention to utilize business and investment profits as financial resources to establish a transparent dividend structure and explore the possibility of interim dividends. Furthermore, the company also reaffirmed its dedication to shareholder-friendly management, stating its intention to retire all shares except those associated with investment attraction in the future.

■Introducing AI Integration Strategies for Key Investment Entities like SK Magic, En-core, and Walkerhill

After outlining SK Networks' vision, SK Magic, En-core, and Walkerhill revealed their approach to innovating AI applications.

SK Magic, having recently established an AI division, emphasized its transformation into an "AI wellness platform company." With a focus on fostering innovation and introducing new AI-based offerings in wellness sectors such as pet care, elderly care, and healthcare, it is working to create a collaborative ecosystem for AI development both domestically and abroad. Furthermore, it is eyeing global expansion into markets like the U.S. and India, aiming to launch groundbreaking AI products this year. In line with this, SK Magic has set mid- to long-term financial goals, targeting an operating profit margin of 20% and a company value multiplier of 30 times by 2028.

When it comes to En-core, the company has rebranded itself as an "AI Powerhouse technology company" since its acquisition by SK Networks last year. Dedicated to aiding various partners in adopting AI solutions, En-core, a leading p_ in the data management sector, is set to offer Large Language Model (LLM) services tailored for B2B and B2G clients this year. Its strategy entails consolidating its market standing by exploiting its operational expertise and top-tier data management capabilities across a range of industries, with the goal of achieving sales of 85.8 billion won and an operating profit of 27.6 billion won by 2026.

Walkerhill Hotel & Resort, which achieved a remarkable turnaround in performance last year, is gearing up to shift into an "AI hotel" through pioneering innovations in both "Culture" and "Technology." By merging "K-culture" with AI technology, the aim is to create a culture that provides customers with differentiated experiences and enjoyment. Simultaneously, the company intends to enhance its NFT-based membership (W.XYZ), a first in the Korean hotel industry, and offer tailored services using Web3 technology. It anticipates increasing its current room occupancy, currently at 68%, by over 5% within three years, while also nearly tripling its profits.

Meanwhile, the Global Investment Center (GIC), responsible for managing both domestic and international investments for SK Networks, will serve as an 'AI introduction partner.' It will provide research and investment information services to assist each investment company in integrating AI-based innovation into their current investment endeavors, thereby complementing their existing efforts in this domain.

SK Networks foresees achieving an operating profit of 700 billion won, tripling its current level by the end of 2026, through the incorporation of innovative business models across headquarters and investment companies, along with the exploration of new growth opportunities in AI and robotics. This alignment not only strives to improve performance but also signifies a step closer to realizing SK Networks' vision of "Civilization of Humanity through AI Democratization."

CEO Hojeong Lee conveyed in his concluding speech at the AGM, "Our commitment is to leverage AI, now a dominant force in both individual lives and industries, as a central pillar for motivating innovation across our company's business endeavors," he stated. "We strive to seek and implement growth strategies that prioritize corporate value and sustainability. In doing so, we will enhance the overall integrity and maturity of our corporate _work as a business-oriented investment company," he continued. "Through these efforts, we will secure long-term shareholder retention by establishing a _work conducive to sustained business expansion. We will capitalize on synergies by pooling resources with diverse member companies within the group, in tandem with SK Networks, to articulate our future strategies and uphold transparent dialogue with the market and stakeholders on pivotal company decisions and transformations," he stated.

Photo 1: SK Networks President & COO Sunghwan Choi Commences AGM with an Opening Address

Photo 2: CEO Hojeong Lee of SK Networks Concludes AGM with a Closing Statement

Photo 3: Capturing the Grandeur of SK Networks’ 'Annual General Meeting' at Conrad Seoul Hotel in Yeouido