SEOUL, South Korea, August 27 — SK Telecom (NYSE: SKM, hereinafter “SKT”) today announced that it will split its wholly owned subsidiary SK Broadband into a surviving company (SK Broadband) and a newly established company (SK Horizon). In connection with the spin-off, SKT has entered into a definitive agreement with funds managed by KKR, a leading global investment firm, and the IMM Investment-Stonebridge consortium (the “IMM consortium”) for a combined KRW 3.08 trillion equity investment in SK Horizon.
The surviving company will focus on innovation in its fixed-line, media, and enterprise businesses, while the newly established company will aim to expand Korea’s leading AI data center (AIDC) infrastructure. Based on the book value of net assets, the spin-off ratio has been set at 0.8351323 (approximately 0.84) for the surviving company and 0.1648677 (approximately 0.16) for the newly established company.
SK Horizon, whose name reflects its ambition to “open new horizons” in the AIDC sector, will be responsible for expanding its infrastructure to a total capacity of 318 MW, encompassing eight data centers already in operation – Seocho, Ilsan (two locations), Bundang, Gasan, Centum, Yangju, and Pangyo – and new AIDCs currently under construction, including those in Ulsan and Guro. It will also pursue the phased expansion of its submarine cable infrastructure, which is essential for global AI businesses.
SKT plans to strengthen its AIDC operational expertise through SK Horizon and expand into a range of AI infrastructure businesses going forward. In particular, its streamlined decision-making structure is expected to enable the company to more effectively secure funding for key business areas, including through external investment.
Kim Seong-soo, CEO of the surviving company SK Broadband, is expected to concurrently serve as CEO of the new company, SK Horizon. The appointment will be finalized through a resolution of the Board of Directors following the completion of the company’s establishment early next year.
Securing trillion-won-scale investment from KKR and the IMM consortium demonstrates the strength and future potential of the AIDC business
Alongside the spin-off, SKT announced that it has entered into a definitive agreement with funds managed by KKR and the IMM consortium for a combined KRW 3.08 trillion equity investment in SK Horizon. As investors in the newly established company, KKR and the IMM consortium will provide capital to support SK Horizon’s expansion as an AI data center infrastructure platform. Upon completion of all phases of the investment under the transaction, KKR and IMM will hold 29% and 20% stakes in SK Horizon, respectively, while SKT will retain management control as the largest shareholder with a 51% stake.
KKR is one of the most active infrastructure investors globally, with over $100 billion in infrastructure assets under management and more than $70 billion invested across digital and power assets. KKR is making this investment primarily from its Asia Pacific infrastructure strategy.
The IMM Investment-Stonebridge Consortium comprises two leading South Korean investment firms, IMM Investment and Stonebridge Capital. IMM Investment, founded in 1999, is a leading South Korean alternative investment firm with over USD 7.5 billion in assets under management across venture capital, growth equity, and infrastructure. Stonebridge Capital, founded in 2008, is a leading South Korean private equity firm with approximately KRW 3.6 trillion (USD 2.5 billion) in cumulative assets under management, investing in market-leading companies in structurally growing sectors.
SKT fully set for AIDC expansion with SK Horizon and SK Hyper
With this governance restructuring, SKT has completed the establishment of a full-scale AIDC business structure together with SK Horizon and SK Hyper, a specialized company established last July.
SKT will oversee the Group’s overall AIDC business, setting business strategies and directions and collaborating with global big tech companies. Building on its expertise and capabilities in data center operations, SK Horizon will be responsible for expanding infrastructure, including existing key AIDCs and submarine cables.
SK Hyper will focus on business development for new AIDC projects, with 5 GW of capacity targeted for phased opening in 2029 and expansion toward a total capacity of 15 GW in 2035.
Meanwhile, the surviving company, SK Broadband, plans to strengthen the competitiveness of its fixed-line, media, and enterprise businesses through AX-driven innovation in products and services, while sustaining solid growth. It also plans to accelerate future growth by actively identifying new business models.
With the aim of completing the spin-off and establishing the new company in the first quarter of next year, the necessary procedures, including an extraordinary general meeting of shareholders and government approvals will be carried out.
“This governance restructuring is a proactive measure aimed at strengthening expertise and enabling faster execution in the AIDC business,” said Kim Seong-soo, CEO of SK Broadband. “As an AIDC infrastructure company, we will continue to scale up SK Horizon and grow it into Korea’s leading data center operator.”
“We are pleased to support SKT as it establishes SK Horizon and expands its AI data center infrastructure platform in Korea,” said Keith Kim, Partner at KKR. “SK Horizon brings together an established operating platform, capacity under development and a strong strategic partner. Korea’s advanced digital ecosystem and growing demand for AI capacity provide a strong foundation for SK Horizon’s next phase of growth.”
“AI data centers and submarine cables will be among the core infrastructure assets shaping Korea’s digital sovereignty and industrial competitiveness going forward,” said Kim Byung-hun, Head of Infrastructure at IMM Investment. “By investing in SK Horizon on the back of long-term capital from Korea’s leading institutional investors, the IMM Investment-led consortium aims to build a sustainable growth structure that combines the capital strength of our global partner with the stability of domestic capital.”