SKT divided after 37 years… Becoming a telecommunications and investment company

SK Telecom CEO Park Jung-ho (left) and SK Telecom MNO business CEO Yoo Young-sang attend an extraordinary general meeting of shareholders held at SK Telecom T Tower in Jung-gu, Seoul on the 12th. yunhap news

After 37 years of establishment, SK Telecom is divided into a telecommunication company and a semiconductor and information technology investment company. SKT held an extraordinary general meeting of shareholders at SKT T Tower in Jung-gu, Seoul on the 12th and confirmed the division of SK Telecom and SK Square. SKT will transform itself into an artificial intelligence (AI) and digital infrastructure service company with a focus on the telecommunication sector, and SK Square, with SK hynix as a subsidiary, will be reborn as a company specializing in investment in semiconductors and information and communication technology (ICT).

Based on the number of stocks present on that day, the approval rate for the spin-off was 99.95%, and the approval rate for the stock split was 99.96%. The quorum at the general shareholders’ meeting for corporate spin-off is at least one-third of all issued shares and more than two-thirds of the shareholders attending the general meeting.

With this approval, the two companies will be newly launched on the 1st of next month. SKT Telecom, the surviving company, will focus on wired and wireless communications, AI-based services, and digital infrastructure services. In the AI-based service, the subscription service ‘T Universe’, introduced in the second half of this year, will evolve into an online and offline subscription platform. Metaverse platform ‘Ifland’ is also growing in size. In the case of digital infrastructure services, the data center and cloud businesses will be expanded in earnest.

Through this, the company plans to increase its annual sales from 15 trillion won last year to 22 trillion won by 2025. Under SK Telecom, seven companies including SK Broadband, SK Telink, and PS&Marketing belonged.

The new company, SK Square, specializes in semiconductor and ICT investment. In the semiconductor field, the company plans to pursue synergy with SK Hynix by pursuing aggressive investment and mergers and acquisitions (M&A). It also preemptively invests in the ICT sector and seeks cooperation with global big tech companies. Through this, it aims to become a ‘global ICT investment company’ and increase its net asset value from 26 trillion won to 75 trillion won by 2025.

Under SK Square, 16 companies including SK Hynix, ADT Caps, 11st, Tmap Mobility, and One Store were included.

The split ratio of the two companies is 0.607 for the surviving company SK Telecom and 0.392 for the new company SK Square. The current SKT will be re-listed and re-listed as SK Telecom and SK Square on November 29, respectively, after a period of suspension of stock trading from October 26 to November 26 prior to the November 1, the split-off date.

A stock split will also be made in which the value of one common share, which is currently 500 won, is divided into 100 won. The total number of shares issued by SKT will increase from 7,206,143, to 360,307,15. It is divided into a surviving company and a new company in a 6 to 4 split ratio.

SKT CEO Park Jung-ho said, “The main purpose of the spin-off is to maximize shareholder value. If the telecommunication business and semiconductor ICT investment are aligned with appropriate tools, we will be able to return this value to our shareholders.” When asked about the possibility of participating in foreign investors such as Amazon right after the shareholders’ meeting, CEO Park said, “Amazon is considering attending as a shareholder together, and we are looking for strategic investors.”

SKT formalized the spin-off for the first time in April of this year, and at the board meeting in June, decided about a 6 to 4 spinoff and a 5 to 1 stock split.

At the extraordinary general meeting of shareholders on the same day, the agenda of appointing SK Telecom’s non-executive director as SK Telecom’s other non-executive director was also passed.

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Source: 경제 by

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