SK Telecom to Spin Off Broadband Unit, Create Data Center Specialist 'SK Horizon'

SK Telecom is set to significantly restructure its operations by spinning off its subsidiary, SK Broadband. The company announced on August 27th that it will perform an in-kind split, creating a new entity named 'SK Horizon'. This new company will specialize in artificial intelligence data centers (AIDC), a rapidly growing sector.

The strategic move aims to position SK Horizon as a major player in the Asian market. To fuel its expansion, the company plans to secure substantial external investment totaling 3.08 trillion won. This funding is earmarked for developing and expanding data center infrastructure, including facilities currently in operation and those under construction. SK Telecom envisions this initiative as a crucial step towards establishing an 'Asia AI Infrastructure Hub'.

SK Horizon will inherit and manage eight existing data centers across Seoul and Gyeonggi Province, along with AIDC facilities being built in Ulsan and Guro. The company also plans to engage in the phased development of undersea cables, essential for global AI operations. This focus on robust infrastructure is designed to meet the increasing demands of the AI industry.

Meanwhile, the original SK Broadband will continue to operate as the surviving entity. It will maintain its core businesses, which include broadband internet services, media content, and enterprise solutions. This division allows both entities to concentrate on their respective strengths and market opportunities, with SK Telecom retaining full ownership of the new company's shares.