SK Telecom denies report on selling stake in e-commerce unit to Amazon

SK Telecom Co., a major mobile carrier, denied a news report Monday that it is planning to sell a stake in its e-commerce unit 11Street to US retail giant Amazon.com Inc. in a bid to bolster its online retail business.

Local media had earlier reported that Amazon will exercise its right to acquire a 30 percent stake in 11Street, and that the US retailer could acquire up to a 50 percent stake in the South Korean e-commerce company.

SK Telecom and Amazon strengthened ties in November last year to collaborate in e-commerce and made an agreement whereby the US tech giant has the right to acquire a stake in 11Street.

"We are collaborating to launch a service so that Amazon products can be directly purchased within 11Street," SK Telecom said in a statement. "There is no ongoing matter regarding a stake transfer."

The wireless carrier currently owns an 80 percent stake in 11Street and is planning an initial public offering for the online retailer next year. (Yonhap)