SK Telecom expands its Web3 ecosystem

South Korea's SK Telecom Co. has joined hands with Polygon Labs, a New York-based global blockchain company, to expand its Web3 ecosystem.

Both companies on Thursday signed a memorandum of understanding on forming a strategic partnership at SK Telecom headquarters in Seoul. Web3 refers to an internet environment that uses decentralized technologies such as blockchain.

In Web3, users can own and manage their personal information and data and store then in individual online data storage sites instead of centralized servers.

Polygon Labs is considered a leader in this field, with its network hailed as the "internet of the blockchain sector" for its excellent performance and Ethereum compatibility.

SK Telecom will support Polygon's blockchain network on the non-fungible token (NFT) marketplace TopPort, which was launched last year, and a Web3 wallet slated for release in the second half this year. Thus NFT creators using TopPort can trade on Polygon's network.

SK Telecom will also promote the use of Polygon’s virtual coin Matic on TopPort for NFT transactions. Through its subsidiary Polygon Ventures, Polygon Labs will consider investing in promising Web3 companies recommended by its South Korean partner.

"SK Telecom will combine its blockchain service technology and experience accumulated over the past several years with Polygon Labs' infrastructure technology and ecosystem to build the cornerstone to popularize Web3," said SK Telecom Vice President Oh Se-Hyun, who heads the company's Web3 CO unit.

On the same day, he gave a lecture on “Revolution of the Digital Economy: Synergy between Web3 and Generative AI” at a webinar hosted by the technology management policy division of the National Academy of Engineering of Korea in Seoul.

"Many Web3 services require users to have knowledge and experience in blockchain technology," he said. "Generative AI is expected to improve the user experience in Web3 and raise service convenience."

"Now, the important thing is how fast one creates an ecosystem."

Write to Seung-Woo Lee at leeswoo@hankyung.com