SK Telecom to spend $1.1B on startups, develop ICT

South Korean telco's investment aims to help in setting up on information technology startups, and create synergy between ICT and other industry sectors.

SK Telecom to spend $1.1B on startups and ICT development over the next 3 years.

SK Telecom will spend a total of 1.2 trillion won (US$1.1 billion) over the next three years to help South Korea's baby boomers start ICT-based businesses, and help the information technology sectors collaborate with other sectors.

According to Yonhap News on Wednesday, the South Korean telco will invest 750 billion won (US$690 million) in developing software solutions, 300 billion won (US$276 million) in research and development (R&D), and the remaining amount in boosting synergy between information, communications and technology (ICT) sector and other businesses, such as healthcare.

The telco also hopes to create more jobs by capitalizing on its mobile network.

The company's move aligns with South Korea's new administration, headed by president Park Geun-hye, who in February, unveiled plans to foster technology startups and help them secure funds through angel capitalists , to revitalize the economy and create more jobs.

Another local company, Kakao, the developer of chat platform KakaoTalk, also collaborated with the country's Small and Medium Business Administration (SMBA) last month to support startups with a 30 billion won (US$27 million) fund called the "Kakao Young Entrepreneur Fund".