SK Telecom, the nation's top mobile carrier, said the venture will be established within the year and focus initially on developing 5G-powered ultra-low-latency media transmission technologies and 5G repeaters, Korea Times reported.
The two companies will also work together in mobile edge computing, the application market and blockchain, with the aim of targeting the cloud game, augmented reality and virtual reality markets, cited as "killer services" for 5G networks.
SK Telecom CEO Park Jung-ho and Deutsche Telekom CEO Timotheus Hottges, plus key executives of the two companies, held a meeting in Seoul the previous day to discuss their 5G global business strategies, according to the Korean company.
"We will be transformed into a comprehensive ICT company beyond a mobile carrier through cooperation with global partners in the 5G era," Park said.
SK Telecom also said it will invest $30 million in a fund operated by Deutsche Telekom's investment arm, Deutsche Telekom Capital Partners (DTCP), to back promising information and communication technologies (ICT) companies and secure future growth engines.
DTCP will set up its Asian branch in Seoul and nurture 5G startups in cooperation with SK Telecom, according to the Korean firm.