SK Networks and Sunway Group Join Forces for AI-Powered Growth

South Korean trading company SK Networks Co. has partnered with Malaysian conglomerate Sunway Group to drive growth in future sectors, including artificial intelligence, and transform into an AI technology investment company.

SK Networks and Sunway signed a memorandum of understanding for cooperation, marking a significant step towards collaboration in AI sectors in South Korea and Malaysia, with potential joint entry into other countries.

The two companies have also agreed to establish a joint venture between Sunway and SK Magic Co., a wholly-owned home appliance rental and lifestyle solution subsidiary of SK Networks, in Malaysia, and exchange stakes to deepen their partnership.

Transforming into an AI Company

SK Networks and Sunway plan to cooperate on innovative AI products, leveraging SK Magic’s developments and Sunway Group’s technology, to build AI systems within the Malaysian conglomerate.

PhnyX Lab, SK Networks’ AI technology development unit in Silicon Valley, California, will play a crucial role in this collaboration.

SK Networks is restructuring its business to focus on AI, aiming to triple its operating profit to 700 billion won ($508.4 million) in 2026 by incorporating AI technologies into its core businesses – rental, data management, and hospitality.

Sunway, founded in 1974, operates in various sectors, including real estate, construction, education, healthcare, retail, and hospitality, across around 50 countries.

The Malaysian conglomerate has been working with SK Magic’s unit in Southeast Asia, laying the groundwork for this partnership.