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SK Group's logo at it headquarters in central Seoul. (Yonhap) |
SK Telecom’s nontelecom split-off SK Square will officially launch on Monday, with a focus on semiconductor and new tech businesses, SK Telecom, the world’s largest telecommunication company said Sunday.
The split-off will allow the SK Group company to better respond to changing dynamics in the chip sector through strategic investments, which were partly limited under the fair trade law here.
Under the restructuring, the first since SKT Telecom was founded in 1984, SK Square will control nontelecom and tech units, including chipmaking affiliate SK hynix, app market operator ONE Store, e-commerce platform 11Street and T Map Mobility. It will take over about 20 percent stake in SK hynix from SK Telecom.
SK Square aims to triple the combined net asset value to 75 trillion won ($63.9 billion) by 2025.
Park Jung-ho, CEO of SK Telecom, will become CEO of SK Square and is expected to take lead in growing the chip business.
Previously, SK hynix’s status as a sub-subsidiary within SK Group has been a stumbling block in its expansion and strategic partnership plans. Under the conglomerate’s equity layout, the chipmaker was 20 percent owned by SK Telecom, which is then 30 percent controlled by the group’s holding firm SK Inc. Korean rules stipulate a sub-subsidiary like SK hynix can only buy other companies when it acquires their entire shares.
Park in April spoke of the need to make bold moves in the chip sector. Now with SK Square to act as the role of an investment specialist, SK Group is expected to further beef up the chip business.
SK Square currently plans to launch initial public offerings of security systems unit ADT Caps and mobile app market operator ONE Store, through which the company will raise funds for future investments in its chip unit.
Meanwhile, the remaining company will oversee the telecommunication business and other units that operate subscription and platform businesses.
SK Telecom said it plans to increase sales of the remaining firm to 22 trillion won by 2025, from 15 trillion won in 2020.
The telecommunication business will be led by Ryu Young-sang, president of the mobile network operations division at SK Telecom.
(
ws@heraldcorp.com)
