Following on the news that China is restructuring its telecoms industry and expects to issue 3G licenses after its completion, SK Telecom (NYSE: SKM) said it would invest $1 billion to jointly build a digital content and design center in China after signing a “Memorandum of Understanding (MOU) with the Chinese government. The Korean network operator said the center would meet the “sharp demand” in content that it expected 3G networks to create and would act as a “bridgehead” for Korean companies hoping to enter the Chinese market.

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SK Telecom chief Shin Bae Kim said that he saw the new digital content products—such as games and video—as well as China’s homegrown 3G TD-SCDMA technology being exported to the global market. SK Telecom has made several investments in China’s content market, including recording company TR Music and gaming firm Magicgrids (Release).