SK Telecom will spin off SK Broadband through a vertical split to establish “SK Horizon,” a specialist company for artificial intelligence (AI) data center (AIDC) infrastructure. The company also plans to attract an additional KRW 3.08 trillion in external investment, with the aim of growing into an “Asian AI infrastructure hub.”

SK Telecom announced on the 27th that it will carry out a vertical split of its subsidiary SK Broadband into the surviving company SK Broadband and the newly established SK Horizon. SK Telecom also explained that “global investment firm KKR and an IMM Investment–Stonebridge consortium are scheduled to invest a total of KRW 3.08 trillion in the new SK Horizon.”

The new SK Horizon will be responsible for expanding data center infrastructure with a total capacity of 318MW, including eight existing data centers currently in operation in locations such as Seocho in Seoul and Ilsan in Goyang, Gyeonggi Province, as well as the AIDCs under construction in Ulsan and Guro in Seoul. It also plans to gradually move forward with the construction of submarine cables required for global AI business. The surviving company SK Broadband will continue to oversee its existing businesses in fixed-line, media, and enterprise services.

Instead of a physical split, under which the parent company would hold all shares of the newly established company, SK Telecom chose a vertical split that allows existing shareholders to be allocated shares in the new entity. Based on the book value of net assets, the split ratio was set at 0.84 for the surviving company and 0.16 for the new company.

Kim Sung-soo, CEO of SK Broadband, is scheduled to concurrently serve as CEO of SK Horizon. The company name “Horizon” reflects the intention to “open a new horizon” in the AIDC field. SK Telecom plans to proceed with related procedures, including an extraordinary general meeting of shareholders for the vertical split and company establishment, during the first quarter of next year (January–March).

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