SEOUL, Oct 29 (Reuters) - SK Telecom, South Korea's top mobile carrier, will focus providing networking and other telecom-based support services to the industrial and public sectors for growth, its chief executive said on Thursday.
SK and other Korean telecom firms have been struggling to find new revenue sources as the domestic market is fully saturated and attempts to expand overseas have proved challenging.
Heavy costs to attract and retain users are squeezing margins while pressure to lower tariffs has clouded the mobile sector's outlook.
CEO Jung Man-won said in a statement SK Telecom would make services enhancing the productivity of other industries its future growth engine, aiming to generate 20 trillion won ($16.9 billion) in revenue from such services in 2020.
Jung said the company would break away from excessive reliance on individual mobile users and would work with companies in the retail, financial, education, construction and healthcare industries.
After shelving plans to directly enter foreign mobile markets, the service-oriented new business model is also seen helping SK increase sales overseas. Jung said the company aimed to boost overseas sales to more than half of total revenue in 2020.
SK Telecom exited the U.S. market last year, selling its struggling mobile unit Helio to Virgin Mobile USA. Last month it also sold back its stake in China Unicom for $1.3 billion.
SK Telecom is set to announce its third-quarter results later in the day.

($1=1184.6 Won)

(Reporting by Rhee So-eui; Editing by Jonathan Hopfner)

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