SK Telecom will split its wholly owned subsidiary SK Broadband through a corporate spin-off to separate the AI data centre (DC) business into a standalone company. It will concentrate AI infrastructure operations in the new company, SK Horizon, and attract 3.08 trillion won in external investment.

SKT said on Aug. 27 it will split SKB into the surviving company SKB and the new company SK Horizon through a corporate spin-off.

The split ratio, based on net asset book value, is SKB 0.8351323 and SK Horizon 0.1648677. The surviving company, SKB, will handle wireline, media and enterprise businesses, while SK Horizon will take full charge of AI DC infrastructure.

SK Horizon will incorporate 8 data centres currently in operation and AI DCs under construction in areas including Ulsan and Guro. It will also be responsible for expanding data centre infrastructure totaling 318MW and building subsea cables needed for global AI business.

SKT explained the decision to operate the AI DC business as a separate corporation is aimed at improving operational expertise and speeding up decision-making. It plans to create a structure that makes it easier to attract large-scale investment.

SK Horizon has attracted investment totaling 3.08 trillion won from global investment firm KKR and an IMM Investment-Stonebridge consortium.

Once phased investment is completed, KKR and the IMM consortium will each hold 29 percent and 20 percent of SK Horizon. SKT will retain 51 percent, maintaining its position as the largest shareholder and management control. The funds will be used for further AI DC expansion and infrastructure development.

The split will also reshape SKT's AI DC business structure. SKT will oversee the group's AI DC business strategy and cooperation with global big tech companies. SK Horizon will handle existing data centre operations and expansion of AI DC and subsea cable infrastructure. SK Hyper, established in July, will focus on new AI DC development.

SK Hyper aims to secure AI DC infrastructure of 5GW by 2029 and 15GW by 2035 in stages. The surviving company SKB will focus on strengthening competitiveness in wireline, media and enterprise businesses based on AI transformation (AX).

SKT plans to complete the final split and establish SK Horizon in the first quarter of next year after government approvals and permits and an extraordinary shareholders' meeting. The head of the new company is expected to be Kim Sung-soo (김성수), SKB's chief executive officer, in a concurrent role, and will be finalised after the split through the board of directors.

Kim said, "This governance reshuffle is a measure to secure expertise and fast business execution capability in the AI DC business," and added, "We will continuously scale up SK Horizon and grow it into the top DC business operator in South Korea."