SK Telecom spinoff to carve out holding company for non-mobile affiliates

SK Telecom, South Korea‘s largest mobile carrier, said Wednesday it will set up a new holding company for its non-mobile subsidiaries to boost shareholder value and accelerate growth in its businesses.

The telecom operator said in a regulatory filing that it will conduct a spinoff to form the holding company, which will oversee operations of its tech affiliates and subsidiaries, such as memory chip giant SK hynix, e-commerce firm 11Street and ride-hailing company T Map Mobility, among others.

The remaining entity will focus on the mobile carrier’s traditional telecom business and expand to new sectors, such as artificial intelligence and data centers.

“The purpose of the restructuring is to give the assets that we have built (in chip and ICT businesses) a chance to receive fairer market valuations and by doing so, to take a step forward to a better future,” SKT CEO Park Jung-ho explained during an online meeting with employees.

The spinoff would allow the firm to get more aggressive in the chip and ICT fields, SKT added.

The company, however, ruled out a rumored plan to merge SK Inc., the group’s current holdings company, and the newly envisioned entity.

“There is no such plan,” an official said. 

By Korea Herald (khnews@heraldcorp.com)