SK Networks President and Chief Operating Officer Choi Sung-hwan (right) and Sunway Group CEO of digital and strategic investments Evan Cheah pose for a photo after signing a memorandum of understanding in Seoul on Oct. 22. (SK Networks)

SK Networks said Wednesday it has joined forces with Malaysia’s Sunway Group, a leading conglomerate in Southeast Asia with key interests in real estate and construction, to drive artificial intelligence innovation.

Founded in 1974, Sunway is one of Malaysia’s top 20 conglomerates, operating in 13 sectors across 50 countries with a market capitalization exceeding 10 trillion won ($7.2 billion).

Under the partnership, the two companies plan to collaborate in the AI sector across Korea and Malaysia while considering joint expansion into third countries.

“We look forward to cooperating on AI innovation projects led by SK Magic, a subsidiary of SK Networks, and utilizing the technology of PhnyX Lab, a US-based AI specialist, to establish and develop AI systems within Sunway Group,” an SK Networks official said.

Additionally, the two companies are exploring various collaborative models, including setting up a joint venture between SK Magic and Sunway in Malaysia and conducting a share swap between SK Networks and Sunway.

“Our partnership with an AI-driven organization like SK Networks represents a natural synergy for Sunway’s own digital transformation journey,” said Evan Cheah, CEO of digital and strategic investments at Sunway Group.

“We aim to create a working group focused on specific AI-related collaborations with Sunway and generate visible synergies, including the expansion of local business in Malaysia,” an SK Networks official said.

By Jie Ye-eun (yeeun@heraldcorp.com)