SK Telecom announced that it will split its wholly owned subsidiary SK Broadband into a surviving company (SK Broadband) and a newly established company (SK Horizon). In connection with the spin-off, SKT has entered into a definitive agreement with funds managed by KKR, a leading global investment firm, and the IMM Investment-Stonebridge consortium (IMM consortium) for a combined KRW 3.08 trillion equity investment in SK Horizon.
The surviving company will focus on innovation in its fixed-line, media, and enterprise businesses, while the newly established company will aim to expand Korea’s leading AI data center (AIDC) infrastructure. Based on the book value of net assets, the spin-off ratio has been set at 0.8351323 (approximately 0.84) for the surviving company and 0.1648677 (approximately 0.16) for the newly established company.
SK Horizon, whose name reflects its ambition to “open new horizons” in the AIDC sector, will be responsible for expanding its infrastructure to a total capacity of 318 MW, encompassing eight data centers already in operation - Seocho, Ilsan (two locations), Bundang, Gasan, Centum, Yangju, and Pangyo - and new AIDCs currently under construction, including those in Ulsan and Guro. It will also pursue the phased expansion of its submarine cable infrastructure, which is essential for global AI businesses.
SKT plans to strengthen its AIDC operational expertise through SK Horizon and expand into a range of AI infrastructure businesses going forward. In particular, its streamlined decision-making structure is expected to enable the company to more effectively secure funding for key business areas, including through external investment.
Kim Seong-soo, CEO of the surviving company SK Broadband, is expected to concurrently serve as CEO of the new company, SK Horizon. The appointment will be finalized through a resolution of the Board of Directors following the completion of the company’s establishment early next year.
