SK Networks Co., a South Korean trading company under the SK Group, has partnered with Malaysia’s Sunway Group to explore growth opportunities in artificial intelligence and other advanced technology sectors.
The two firms signed a Memorandum of Understanding (MoU) on October 30, outlining a strategic collaboration to boost AI-driven initiatives in both South Korea and Malaysia, with potential plans to expand their partnership to additional markets.
The agreement brings together SK Networks, led by CEO Hojeong Lee, and Sunway Group, a major Southeast Asian conglomerate active in real estate, healthcare, education, and hospitality.
Key executives, including Evan Cheah, Sunway’s CEO of Digital and Strategic Investments, traveled to Seoul for the signing ceremony held at SK Networks’ headquarters. Both companies aim to leverage their strengths to create AI synergy and foster mutual growth across their business portfolios.
Sunway Group, founded in 1974, operates in 50 countries and boasts a market capitalization exceeding RM35 billion (approximately USD 8 billion). The group is well-known for its build-own-operate business model and oversees several divisions, including construction, real estate, and healthcare.
Its flagship development, Sunway City Kuala Lumpur, is Malaysia’s first fully integrated green township, attracting over 42 million visitors annually. SK Networks intends to enhance its presence in the region through this new partnership while contributing to Sunway’s digital transformation efforts.
As part of the agreement, SK Magic, the home appliance and lifestyle solution subsidiary of SK Networks, will collaborate with Sunway to develop innovative AI products. The technology from PhnyX Lab, SK Networks’ AI-focused unit based in Silicon Valley, will be utilized to create and implement AI systems within Sunway’s operations. This initiative has shown SK Networks’ strategic shift towards AI, aiming to triple its operating profit to 700 billion won (USD 508.4 million) by 2026.
Evan Cheah, CEO of Sunway Digital and Strategic Investment, highlighted the synergies it brings to Sunway’s digital transformation journey. Both companies are also considering establishing a joint venture and exploring share exchanges to deepen their collaboration.
An official from SK Networks stated that the company plans to form a working group to develop specific collaboration strategies with Sunway, focusing primarily on AI-related sectors. The goal is to create measurable synergies, including expanding local operations in Malaysia.
SK Networks wants to ensure that this partnership yields tangible results, actively supporting efforts to facilitate the global growth and collaboration of its existing businesses while reinforcing its identity as an AI-driven organization.
Hojeong Lee, President and CEO of SK Networks, emphasized its dedication to fostering seamless operations between its headquarters and subsidiaries. He noted that the partnership with Sunway presents an opportunity to explore innovative business models and cultivate external partnerships that can generate significant value.
Both companies aim to enhance their competitive edge by concentrating on AI technologies and drive digital transformation within their respective industries.
