SK Corp. Enters E-Commerce Sector

SK Corp., the flagship company of SK Group which is one of the nation’s top five conglomerates, announced that it concluded a contract with Oracle Systems Korea as solution provider for its entry into e-commerce.

The company is planning to invest 10 billion won (about US$8.3 million)
to build contents as well as purchase hardware and software required for
the cybermall business. SK intends to launch commercial service in January
next year.

It will be a portal-type cybermall consisting of nine different
business
units, including a regional information business, travel service, real
estate
service, education unit and game business, according to company
officials.

The projected e-commerce system is expected to be linked with SK
Telecom,
Korea’s largest cellular phone carrier, SK Corp. and other SK Group
affiliates
to further develop the group’s Internet-based businesses.

“We hope that our projected e-commerce business will reach the
break-even
point in three years after launch of the service scheduled early next
year and
our target is to clinch 10 to 15 percent share in the domestic e-commerce
market,” said
an executive of SK Corp. He added that SK has been preparing for the
e-commerce business since 1996.

“The ultimate goal of our Internet-based business is to provide all
kinds of
information customers might need in their everyday life, so that people
can be
free from time and space limits in accessing information they need.” he
explained.

Through the e-commerce site, the company is determined to build one of
Korea’s
most popular portal sites. As part of such a plan, SK Corp. plans to
offer
various tourist information services, featuring information about major
tourist attractions in Korea as well as overseas destinations.

Also, the company considers offering one-stop information service, which
include reservation of airline tickets, hotel rooms and car rental by
interconnecting with global reservation networks.

Unlike existing local e-commerce operations, the company also planning
financial services such as online banking, insurance services and stock
brokerage as soon as its e-commerce business is fully established. Its
future
plan also include mobile communications system to enable its customer to
access information through cellular phones.

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