SEOUL, Nov. 26 (Korea Bizwire) — SK Telecom Co., South Korea’s largest mobile carrier, said Thursday its shareholders approved its move to spin off its mobility business as it seeks to strengthen its focus in the connected mobility sector.
SK Telecom said nearly all participants at a shareholders meeting approved the spinoff plan and that the new entity — T Map Mobility Co. — will be established on Dec. 29.
The move came a month after the carrier announced the spinoff plan as it will partner with U.S. ride-hailing company Uber Technologies Inc. to pursue a new taxi-hailing business in South Korea.
SK Telecom’s mobility business is currently focused around its popular map application T map, which has around 12.5 million monthly active users. Based on the app, SK Telecom also provides navigation, taxi-hailing and parking services.
SK Telecom CEO Park Jung-ho said the new company will pursue new mobility businesses.
“Including a flying car that can connect the wider Seoul region within 30 minutes, we will provide a mobility life platform that encompasses parking services to public transportation,” Park said in a statement.
According to SK Telecom, Uber and T Map Mobility will create a joint venture by the first half of next year.
Uber plans to invest over US$100 million into the joint venture, which will focus on ride-hailing services, and another $50 million into SK Telecom’s new spinoff.
SK Telecom said it expects T Map Mobility, valued currently at around 1 trillion won ($905.1 million), to be valued at 4.5 trillion won by 2025.