SK Square Becomes the Name of the New Spin-off Company2021.08.17 Print
SK Telecom (NYSE:SKM) announced that the name of the new company to be established through a horizontal spin-off has been decided as “SK Square.” The surviving company will keep its current name SK Telecom.
After finalizing the spin-off plan through the General Shareholders’ Meeting to be held on October 12, 2021, SK Telecom is expected to officially split into SK Telecom (surviving company) and SK Square (new company) on November 1, 2021.
SK Telecom will focus on the AI and digital infrastructure businesses, while SK Square accelerates growth through investments in semiconductor and information and communication technologies (ICT).
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.
Through these investments, SK Square aims to reach a net asset value of KRW 75 trillion by 2025, increasing 3-fold from that of today.
In the area of semiconductor, it will focus on aggressive investments and M&As that can result in synergies with SK Hynix, while strengthening public-private sector cooperation to create the “K-Semiconductor Belt” to solidify Korea’s leadership in the semiconductor market.
The company will also accelerate growth in the areas of New ICT businesses including app market (One Store), commerce (11st), converged security (ADT Caps), and mobility (T Map Mobility) through investments as well as partnerships with diverse companies around the globe.
Moreover, SK Square plans to invest in promising future technologies such as quantum cryptography, digital healthcare and future media content.
SK Telecom CEO Park Jung-ho has been emphasizing the importance of bold and timely investments as well as constant development of growth drivers to proactively respond to the changes and challenges propelled by the COVID-19 pandemic.
CEO Park will be appointed as the CEO of SK Square through the General Shareholders’ Meeting and Board of Directors’ Meeting in October.
Park Jung-ho, CEO of SK Telecom, said, “SK Square will lead the growth of the future key industries such as semiconductor and ICT, and create an enriched ecosystem. Through these efforts, we will contribute to the advancement of the Korean economy.”