Korea’s largest network operator SK Telecom said Monday it will team up with Samsung Electronics to build the Internet of Things test bed in Daegu, in their efforts to vitalize the local start-up sector and the nation’s sagging economy.

The two partners further plan to transform the whole city into a state-of-the-art IoT hub where they will deploy their up-to-date network systems and connected technology.

“SKT’s plan to build an IoT test bed in Daegu is aimed at growing ventures and start-ups, and the company hopes that the project can jump-start the nation’s economy,” said Lee Hyung-hee, president of SKT’s mobile network operations.

“SKT will also try to create a new business ecosystem by supporting ventures seeking to infiltrate the global market,” he added.

Daegu, well-known for its conventional textile businesses, hopes to gain traction to become a global IoT city through the project led by the nation’s largest telecom operator and electronics giant.

To that end, the city will designate some districts as a regulation-free zone where fledgling venture firms can test and roll out their innovative products and services without restrictions.

SKT will deploy cloud computing and big data technologies as well as network and energy management solutions while Samsung will provide network equipment.

After installing the IoT network in the test bed area, the telecom firm will expand coverage to every nook and corner of the city by May.

A so-called Open Lab, a research and development center open for ventures and start-ups, will run on the IoT network.

Daegu will offer financial support for the two companies while eliminating any administrative hurdles.

Local businesses will be tasked with finding promising start-ups in the Daegu region while the Center for Creative Economy and Innovation in Daegu -- one of 17 start-up incubation centers in the nation -- will run programs to nurture entrepreneurs.

Samsung will make its IoT intellectual property available to start-ups.

Health care solutions utilizing medical big data and cloud computing systems, energy management systems for buildings and factories, and infrastructure for electric autonomous vehicles will be deployed in the test bed.

“Joining hands with the nation’s largest ICT firms, Daegu now has a chance to play a key role in developing the nation’s ICT industry,” Daegu Mayor Kwon Young-jin said.

“The city will spare no efforts for the growth of the IoT test bed,” he added.

Market research firm Gartner forecast that the world’s IoT market will create $1.2 trillion of added value and 26.8 billion IoT devices will be up and running by 2020.

By Kim Young-won (wone0102@heraldcorp.com)