[THE INVESTOR] SK Telecom is expanding its online-to-offline business in China in collaboration with a Korean start-up and local firms, the mobile operator said on June 22.

The company signed a letter of intent on June 21 in China with Korean start-up 12CM and three Chinese firms -- Duolabao, BlueFocus, Heima Live -- to establish a joint venture. 



12CM is highly evaluated in the O2O industry in Korea having invented Smart Stamp, which is widely used in coffee shops and restaurants, that has replaced paper coupon system, the company said. 

“As a start-up -- although we have great skills -- we had many roadblocks to expand our business,” said an official from 12CM. “In that sense, this contract is quite meaningful for us.”

The five companies will sign a partnership contract in August for the JV which will be established in November.

SK Telecom will hold majority stake in the venture with 42.71 percent, while 12CM will have a stake of 35.82 percent. The three Chinese companies will together hold 21.48 percent shares.

Based on the 12CM’s skills, SK Telecom will diversify its O2O services including electronic coupons, electronic payment and product advertisements. 

“While seeking to expand our O2O business in China, we found that 12CM has high-end O2O skills,” SK Telecom said in a press release. “After the Chinese market, the next target region will be Southeast Asia.”


By Park Yu-na (yunapark@heraldcorp.com)