Shareholders OK SK Telecom's non-telecom spinoff

SK Telecom Co. said Tuesday its shareholders approved the company's plan to launch a non-telecom spinoff in the latest move to make aggressive investments in new tech and semiconductor businesses.

The corporate restructuring -- the first since the company's foundation in 1984 -- is designed to split South Korea's largest wireless carrier into two, spinning off a new investment company as SK Square.

"The main purpose of the company's spinoff is to maximize shareholder value," Park Jung-ho, CEO of SK Telecom, said at an extraordinary shareholders' meeting at the company's headquarters in Seoul, where participants approved the spinoff plan.

Park is expected to be appointed as the CEO of SK Square.

Under the spinoff plan set to take effect on Nov. 1, SK Square will oversee 16 of 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 surviving SK Telecom will focus on its traditional telecom business while advancing new businesses, including metaverse platforms.

SK Square aims to boost the value of its net asset to 75 trillion won ($62.5 billion) by 2025 from the current 26 trillion won on the back of new investments.

Under the spinoff, SK Telecom's shares will be divided approximately 6-for-4 between the remaining telecom-focused entity and the new investment firm.

Trading of SK Telecom will be suspended from Oct. 26 to Nov. 26 before resuming on Nov. 29. SK Square is set to be relisted on Nov. 29. (Yonhap)