SK Telecom CEO Declares 'AI Native' Overhaul

This transformation is underpinned by a significant capital reallocation, with SK Telecom planning to triple its AI-related investments to 33% of its total capital expenditure over the next five years. The company is targeting 25 trillion won ($18.5 billion) in overall sales by 2028, viewing AI as the primary driver to reshape its market valuation. The strategy's foundation is a massive infrastructure overhaul, including the construction of 1GW-class hyperscale AI data centers across South Korea, with a specific facility planned in collaboration with OpenAI. This initiative aims to establish the nation as Asia's primary AI data center hub, moving beyond traditional telecom assets. Core to the technical execution is the dual approach of using "AI for network" for autonomous optimization and creating a "network for AI" to support new services efficiently. The company is also advancing its proprietary large language model, A.X K1, from 519 billion parameters to over 1 trillion, and implementing a "Zero Trust" security framework across all redesigned IT systems. This shift is not just technological but organizational, with CEO Jung Jai-hun mandating a cultural overhaul to instill an "AI-driven DNA." Internal tools like an "AX Dashboard" will track AI adoption by employee, and a "one-person, one-AI agent" policy is planned to accelerate the transformation. The "AI Native" push aligns directly with South Korea's national strategy to become a top-three global AI leader. It also follows a significant profit drop and a major data breach, positioning the AI transformation as a critical pivot to restore growth and customer trust amid competition from rivals like KT and LG Uplus.