SK Telecom will split into two companies: the surviving company (tentatively named “AI & Digital Infra Company”) and the spin-off company (tentatively named “ICT Investment Company”).
The company expects the spin-off to create an opportunity for the telecommunications, semiconductor and New ICT businesses to be properly valued in the market to deliver greater value to shareholders.
SKT, which was established in 1984, has been sustaining its 5G market leadership with a 46.5% market share by attracting 6.35 million 5G subscribers as of February 2021. The surviving company will strengthen its position as the leading telecommunications company with AI technology at its core. It will have subsidiaries including SK Broadband, the second largest broadband service provider in Korea. Based on a stable cash flow, the surviving company will continue to create new revenue streams in 5G, while investing in new and innovative technologies to boost the development of the ICT industry. In particular, it will expand digital business areas such as cloud, data center and sub_scription-based services.
With over KRW 100 trillion of market cap, SKT’s subsidiary SK Hynix is the second largest stock on the KOSPI by market cap (as of April 13, 2021). The spin-off company will actively carry out diverse investment activities. It plans to invest in both domestic and overseas semiconductor companies to accelerate the growth of the semiconductor industry. In the past, SK Hynix has acquired Kioxia Corporation (formerly Toshiba Memory Corporation) and Intel’s NAND business. Through the spin-off, the company’s investment activities will be proceeded in a swifter manner.
