SK Telecom announced the name SK Square for the new company created through the planned spin-off of its non-telecom activities. The company will keep its current name SK Telecom for the remaining business. SK Square is expected to start work officially from 01 November, pending approval at the shareholders meeting planned for 12 October.
The spin-off is expected to help accelerate growth in semiconductors and ICT services at SK Square, while SK Telecom focuses on digital infrastructure and AI applications.
According to the group, the name SK Square "embodies the company’s vision to become a global investment company specialized in ICT by making aggressive investments in areas ranging from semiconductor to future technology". It will aim to triple its net asset value by 2025, to KRW 75 trillion.
This will include "aggressive investments and M&A" at the semiconductor business to grow SK Hynix in complementary markets. The company is also expected to play a role in strengthening the local industry in Korea, via public-private sector cooperations to create the 'K-Semiconductor Belt'.
Other growth areas for SK Square include the One Store for apps, e-commerce through 11st, converged security following the acquisitions of ADT Caps and Infosec, and mobility through the T Map Mobility services. SK Square will invest in the businesses and pursue partnerships with diverse companies around the globe, the company said. Moreover, SK Square plans to invest in promising future technologies such as quantum cryptography, digital healthcare and future media content.
Park Jung-ho, CEO of SK Telecom, will be appointed the CEO of SK Square at the AGM in October.
