(South Korea) $2.6 Billion in 5 Key Segments TO BE Invested By SKT

SK Telecom, South Korea's top mobile carrier, plans to invest 3 trillion won (some $2.6 billion) over the next five years in its next "cash-cows."

The company said it plans to funnel the cash into areas such as fixed-line and wireless-based technology, user interface and smart grid technology.

To find breakthroughs in its stalled overseas businesses, the local carrier has also decided to apply smart-related technologies to its key products amid the convergence trend being seen in the global telecom industry, CEO Jung Man-won said Monday.

"We are aiming to invest 3 trillion won in five categorized segments such as e-paper and voice recognizing tech by 2014. Smart technology is the strong necessity to strengthen sustainability in South Korea's telecommunication capability," the executive said.

SK Telecom is near to commercializing its own mobile telemetric technology in China. It aims to develop original technologies for the promising e-paper market, according to company officials.

Jung's comments came on the sidelines of his participation in this year's International Telecommunication Union (ITU) Telecom World Trade Show in Geneva, Switzerland.

In a strategy designed to create appeal to SK Telecom's plans, Jung held a series of meetings with Cisco Systems (CSCO) Chairman John Chambers and China Mobile CEO Wang Jianzhou to discuss the convergence trend in the global telecommunication industry, SK Telecom said.

Industry officials, however, say the meetings were mainly targeted to find "new room" for SK Telecom to revive its stalled growth in overseas businesses.

They say SK Telecom has some edges in next-generation telecom technologies and add the one-time events can be a springboard for the South Korean player to join the international competition again.

Its overseas direct investment as a mobile network operator is likely to be altered after it has announced retrenched business plans in China, Vietnam, and Kazakhstan.

SK Telecom sold all its China Unicom shares, froze the financial investment in its mobile service joint venture in Vietnam and decided not to go to the Kazakhstan mobile market.

Rather, it plans to tap into new revenue streams by implementing the next growth strategy program, dubbed "5nGINE."

"With changed corporate strategy and confidence in smart-related technologies, our CEO is raising our international profile," an official said.