13m | Alan Burkitt-Gray
SK Telecom is splitting into two companies, with a technology investment unit to be spun off in November.
Telecommunications activities, including digital infrastructure and artificial intelligence (AI), will remain with SK Telecom, while semiconductors and information and communication technologies will be transferred to a new entity, SKT Technologies.
“The horizontal spin-off marks the beginning of a new era for SK Telecom,” said Park Jung-ho (pictured), CEO of SK Telecom, who will keep her name. “We will do our best to contribute to the advancement of the ICT ecosystem by generating new and sustainable growth.”
The split – 60% in SK Telecom and 40% in the new company – must be approved by shareholders at a meeting on October 12th. If they agree, the company will be divided on November 1st. Both companies are listed.
The company said, “The new company will actively pursue mergers and acquisitions in the global semiconductor market. It is planned to build a semiconductor ecosystem with SK Hynix by investing in innovative technologies including future semiconductor technologies. “
As a surviving company, SK Telecom plans to “establish itself as an AI and digital infrastructure company by maintaining its growth in fixed and wireless telecommunications and home media based on its leadership in the 5G market,” it said.
“Building on its AI and digital infrastructure technology assets, the surviving company will increase its investments in data centers and the cloud business for mobile edge computing to generate new revenue streams.”
The SK Telecom side of the split will include Techmaker, a technology joint venture between SK Telecom and Deutsche Telekom. The two companies formed a 5G joint venture last year.