SK Group’s headquarters in central Seoul (Yonhap)
SEOUL, Aug. 17 (Korea Bizwire) — SK Telecom Co., South Korea’s largest wireless carrier, said Tuesday its non-telecom spinoff will be launched in November as SK Square with the aim of aggressive investments in new tech and semiconductor businesses.
The mobile carrier is currently preparing to split into two after deciding to spin off its non-telecom businesses in June to focus on new investments. The company will hold a shareholders meeting on Oct. 12 for final approval of the plan.
While SK Telecom had tentatively called the new company SKT Investment, the carrier said it finalized the name as SK Square.
Under the spinoff plan, SK Square will oversee SK Telecom’s existing non-telecom and tech units, including chipmaking affiliate SK hynix Inc., app market operator ONE Store, e-commerce platform 11Street and T Map Mobility.
The new company aims to triple its current net asset value to 75 trillion won (US$63.7 billion) by 2025 on the back of new investments.
Last week, SK Telecom said in a conference call that it plans for the new company’s semiconductor division to be valued at 40 trillion won by that year, followed by other existing businesses at a combined 25 trillion won and new investments at 10 trillion won.
The surviving SK Telecom will focus on its traditional telecom business.
The carrier’s current CEO, Park Jung-ho, is expected to be appointed as the CEO of SK Square.
(Yonhap)
