Should SK Group Prioritize AI for Growth During the Industrial Revolution?
Click to start listening
Synopsis
In a bold move, SK Group's Chairman Chey Tae-won urges the company to embrace AI as a core component of its strategy during the industrial revolution. With significant investments planned for the future, this pivot could redefine the landscape of technology in Korea. How will this shift impact the industry and the job market?
Key Takeaways
- SK Group emphasizes AI as a new growth engine.
- Investment of 82 trillion won planned for AI and semiconductors.
- Partnership with AWS to build a hyperscale data center.
- New facility to create 78,000 jobs by 2027.
- AI integration across multiple sectors is prioritized.
Seoul, June 22 (NationPress) SK Group Chairman Chey Tae-won has emphasized the necessity of enhancing focus on artificial intelligence (AI) as a pivotal growth driver, urging the conglomerate to spearhead the AI-driven industrial revolution, according to a company announcement on Sunday.
"The sustainable survival of companies hinges on their ability to adapt to AI," Chey stated during a recent comprehensive business strategy meeting. "We must expand our perspectives by incorporating AI not just in information technology (IT) but also in sectors like electricity, energy, and biotechnology."
His comments resonate with SK Group's long-term vision to expedite its "fourth quantum leap" by embedding AI into all business sectors, including AI data centers, AI agents, robotics, manufacturing, energy, and bio, as reported by Yonhap news agency.
The group had previously disclosed plans to inject 82 trillion won (approximately US$59.7 billion) into the AI and semiconductor industries by the year 2030.
As an initial measure, last week, SK Group revealed a collaboration with Amazon Web Services (AWS) to construct a hyperscale AI data center in Ulsan, situated about 305 kilometers southeast of Seoul.
The facility is slated to commence operations by 2027 and is anticipated to generate up to 78,000 direct and indirect jobs as it develops.
This initiative showcases the commitment shared by SK Group and AWS to enhance cloud infrastructure to foster AI innovation, the company noted.
The project has united key SK Group subsidiaries, including SK Telecom Co., SK hynix Inc., and SK Gas, leveraging the group’s strengths in ICT, energy, and semiconductors.
The new data center is expected to bolster the group’s capacity to satisfy the surging demand for generative AI through advanced compute, storage, database, and edge computing solutions.
"Hyperscale AI data centers are crucial national assets that can fortify our geopolitical stance amid escalating global tech competition and trade tensions," the group stated.
"Considering that AI data centers generally function for decades, this significant investment by a global tech leader highlights confidence in Korea's political and economic stability and its long-term growth prospects."
Point of View
SK Group's commitment to AI innovation is commendable. As the industrial landscape evolves, embracing cutting-edge technology is crucial for maintaining competitiveness on a global scale. This initiative not only supports local economic growth but positions Korea as a significant player in the international tech arena.
NationPress
22/06/2025
Frequently Asked Questions
What is SK Group's investment plan for AI?
SK Group plans to invest 82 trillion won (approximately US$59.7 billion) in AI and semiconductor sectors by 2030 to enhance its business operations.
When is the new AI data center expected to start operations?
The new hyperscale AI data center in Ulsan is expected to commence operations by 2027.
How many jobs will the new data center create?
The AI data center is anticipated to create up to 78,000 direct and indirect jobs over time.
What are the key sectors where SK Group aims to implement AI?
SK Group aims to implement AI across various sectors, including information technology, electricity, energy, and biotechnology.
What is the significance of hyperscale AI data centers?
Hyperscale AI data centers are considered vital national assets that can enhance a country's geopolitical position amidst global tech competition.
