SK Telecom Co. announced that One Store, its mobile app store, had successfully secured investments from two industry-leading global companies. In particular, SK Telecom’s One Store had drawn support from Microsoft Corp. and Deutsche Telekom Capital Partners (DTCP), Deutsch Telekom’s investment arm.
One Store attracted a total of 17 billion won ($15 million) in funding from Microsoft and DTCP. According to SK Telecom, the funding move strengthens its strategic partnerships with the two companies. Furthermore, Microsoft and Deutsche Telekom invested in One Store after witnessing its fast growth.
Offering an Alternative to the Google-Led Market
Founded in 2016, One Store is SK Telecom’s homegrown, integrated app market unit. Some of the country’s most well-established companies joined hands to establish the app store, including KT, LG Uplus, Naver, and SK Telecom.
Notably, One Store is South Korea’s second-largest app store, providing a local alternative to the market leader, Google’s Google Play.
One Store also attracted funding due to its developer-friendly and open approach. In February, South Korean app developers prompted Google to lessen its high 30% commission rate on in-app digital purchases. After the issue, One Store offered a 50% discount to small developers and enforced considerably lower commission rates than Google.
Separately, KT and LG Uplus invested 26 billion won ($23 million) in One Store in March. The telecommunications company also said that the One Store partnership would actively promote a win-win growth with content providers.
Expanding the Platform to a Global Scale
Thanks to the accumulated funds, SK Telecom could expand its 5G, artificial intelligence (AI), and cloud-related operations. SK Telecom and One Store would also keep working with Microsoft and Deutsche Telekom for their mid to long-term goals. Moreover, the affiliates would cultivate the domestic gaming industry, develop more advanced cloud solutions, and extend One Store’s platform globally.
One Store also shared its plans to accelerate its business operations in preparation for its initial public offering (IPO). Besides its IPO, the app market aims to continue showing a robust business performance. To this end, One Store would strive to achieve net income surplus, attain revenue growth, and attract more global investments.
Venturing into Other Sectors
SK Telecom and Microsoft would increase their 5G-based cloud gaming developments to offer new opportunities to local game content creators. The two companies would also create a diverse mobile gaming experience by applying Microsoft’s Azure. In particular, Azure would optimize gamers’ mobile devices to provide ultra-fast speed and ultra-low latency.
Meanwhile, Deutsche Telekom would aid One Store’s global expansion, creating opportunities for local game developers to enter the European market. One Store also plans to venture into the content industry, including web novels and webtoons. Recently, One Store obtained Rok Media, a publishing firm, and built a content production studio with Yes24.
