11Street Shopping Mall to get US$449 million investment
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South Korean mobile carrier SK Telecom has announced a US$449 million investment into a subsidiary’s e-commerce platform, 11Street Shopping Mall.
In a decision yet to be approved by shareholders, SK will use the investment, sourced from the H&Q Korea private equity fund, to establish a new business entity. An SK spokesperson said that further reshuffling among its subsidiary firms will be aimed at seeking a new growth engine with a view to expanding its presence in the country’s online retail market.
The move directly follows a joint venture set up earlier this month between an SK subsidiary and the country’s largest convenience store chain, CU.
The improvements to 11Street’s operations will draw on artificial intelligence technologies, among other information and communications developments, to build new services – including improvements to its mobile payment system.
A representative from SK Telecom said that the company’s new business structure is ready to promptly and flexibly respond to the fourth industrial revolution.
Questions & Answers
Q.What is the primary purpose of SK Telecom's US$449 million investment in 11Street Shopping Mall?
What is the primary purpose of SK Telecom's US$449 million investment in 11Street Shopping Mall?
The investment aims to establish a new business entity for 11Street Shopping Mall. It is intended to help SK Telecom seek a new growth engine and expand its presence in the online retail market.
Q.Who is providing the funding for this significant investment into 11Street Shopping Mall?
Who is providing the funding for this significant investment into 11Street Shopping Mall?
The US$449 million investment for 11Street Shopping Mall is being sourced from the private equity fund H&Q Korea. This funding will be used to establish a new business entity.
Q.What technologies will be used to improve 11Street Shopping Mall's operations and services?
What technologies will be used to improve 11Street Shopping Mall's operations and services?
Improvements to 11Street's operations will draw on artificial intelligence technologies, among other information and communications developments. This will be used to build new services, including mobile payment system enhancements.
Q.Has SK Telecom recently made other strategic moves in the retail sector, besides this investment?
Has SK Telecom recently made other strategic moves in the retail sector, besides this investment?
Yes, this investment directly follows a joint venture set up earlier this month. An SK subsidiary partnered with CU, which is the country’s largest convenience store chain.