SK Telecom Launches Telematics Business in China

(Business News & Technology News, 18 Feb 2008)

SK Telecom is poised to increase its presence in China's telematics market with the recent approval of the Chinese government on the company's acquisition of Shenzhen E-eye High Tech Co. Ltd, a company offering an extensive range of GPS-related services, logistics and controlling software platforms, as well as developing and manufacturing GPS handsets in China. SK Telecom China Holding Co. will incorporate the newly acquired company as a subsidiary.

SK Telecom signed an agreement with E-eye High Tech on November 29, 2007 to purchase a 65.525 percent stake for $15.21 million (over Rmb114 million), endeavoring over the last few months to earn the Chinese government's approval on the deal.

Ahead of upcoming international events like the 2008 Beijing Olympic Games and 2010 Guangzhou Asian Games, per-capita car ownership in China continues to rise. The telematics industry also is experiencing rapid growth thanks to a Chinese government policy that mandates GPS devices on every public and special-purpose vehicle. To tap this fast growing market opportunity, SK Telecom will leverage this acquisition to enhance its competitive position in the China market through sharing its advanced telematics technology with the company.

"The acquisition of E-eye High Tech will pave the way for us to offer SK Telecom's advanced Telematics technology and expertise to the China market. We will also continue to seek more diverse business opportunities centered on Internet, media and content, proactively responding to the fast-changing convergence environment," said Suk Hwan Lee, President of SK Telecom China.

Click here for more information on SK Telecom