SK Telecom and Telecom New Zealand have agreed to work together to tap into the Internet of Things (IoT) sector.

The operators on Tuesday signed a memorandum of understanding (MoU) that will see them jointly develop business models and technologies in the areas of connected cars, smart cities and telematics. They also plan to explore opportunities in smart agriculture further down the line.

"To develop the Korean IoT industry and pioneer the global market, SK Telecom is actively contributing to the creation of a global IoT ecosystem," said SK Telecom senior vice president Cho Seung-won, in a statement. "By cooperating with Telecom New Zealand, in particular, the company is committed to expanding Korea's successful IoT business model to the global market."

South Korea ranks second in the world behind the U.S. in terms of IoT readiness, according to research firm IDC.

For its part, SK Telecom has been contributing to IoT development as a member of Korea's IoT Association and through its participation in the IEEE's IoT Forum in Seoul earlier this year. It is also a founding member of the Bridge M2M Alliance, an Asia-Pacific-focused industry association tasked with simplifying the delivery of machine-to-machine services across the region.

Tuesday's announcement comes a day after SK Telecom signed an MoU with Ericsson that will see the pair collaborate on 5G research.