SEOUL, Aug. 12 (Yonhap) -- SK Telecom Co., South Korea's largest wireless carrier, said Thursday it will form a 20 billion won (US$17.29 million) investment fund with mobile messaging giant Kakao Corp. to nurture promising companies in environmental, social and governance (ESG) sectors.

The two companies will each pitch in 10 billion won to create the fund, with plans to draw additional funding from other investors to increase the total amount to over 25 billion won, according to a joint statement.

The fund seeks to invest in tech companies and startups in converging industries with a strong ESG focus.

The move comes after the two signed a memorandum of understanding in March this year for cooperation in artificial intelligence technologies and ESG efforts.

The two companies formed a strategic partnership back in 2019 when they reached a share swap deal worth 300 billion won.

Source: https://en.yna.co.kr/view/AEN20210812002600320