In connection with the spin-off, SKT has entered into a definitive agreement with funds managed by leading global investment firm KKR and the IMM Investment-Stonebridge consortium (IMM Consortium) for a combined KRW 3.08 trillion equity investment in SK Horizon.

“The surviving company will focus on innovation in its fixed-line, media, and enterprise businesses, while the newly established company will aim to expand Korea’s leading AI data center (AIDC) infrastructure. Based on the book value of net assets, the spin-off ratio has been set at 0.8351323 (approximately 0.84) for the surviving company and 0.1648677 (approximately 0.16) for the newly established company,” SK Telecom said.

SK Horizon will be responsible for expanding its infrastructure to a total capacity of 318 MW, encompassing eight data centers already in operation, Seocho, Ilsan (two locations), Bundang, Gasan, Centum, Yangju, and Pangyo, along with the new AIDCs currently under construction, including those in Ulsan and Guro. The new subsidiary will also pursue the phased expansion of its submarine cable infrastructure, essential for global AI businesses.

“SKT plans to strengthen its AIDC operational expertise through SK Horizon and expand into a range of AI infrastructure businesses going forward. In particular, its streamlined decision-making structure is expected to enable the company to more effectively secure funding for key business areas, including through external investment,” the South Korean business noted.

Kim Seong-soo, CEO of the surviving company SK Broadband, is expected to concurrently serve as CEO of the new company, SK Horizon. The appointment will be finalized through a resolution of the Board of Directors following the company’s establishment in early 2027.

“As investors in the newly established company, KKR and the IMM consortium will provide capital to support SK Horizon’s expansion as an AI data center infrastructure platform. Upon completion of all phases of the investment under the transaction, KKR and IMM will hold 29% and 20% stakes in SK Horizon, respectively, while SKT will retain management control as the largest shareholder with a 51% stake,” SK Telecom remarked.

KKR is one of the most active infrastructure investors globally, with over USD 100 billion in infrastructure assets under management and more than USD 70 billion invested in digital and power assets. The investment giant is pumping this capital as part of its Asia-Pacific infrastructure strategy.

The IMM Investment-Stonebridge Consortium, on the other hand, comprises two leading South Korean investment firms, IMM Investment and Stonebridge Capital.

IMM Investment, founded in 1999, is a leading South Korean alternative investment firm with over USD 7.5 billion in assets under management across venture capital, growth equity, and infrastructure.

Stonebridge Capital, founded in 2008, is a South Korean private equity company with approximately KRW 3.6 trillion (USD 2.5 billion) in cumulative assets under management, investing in market-leading ventures in structurally growing sectors.

“With this governance restructuring, SKT has completed the establishment of a full-scale AIDC business structure together with SK Horizon and SK Hyper, a specialized company established last July,” the group noted.

“SKT will oversee the Group’s overall AIDC business, setting business strategies and directions and collaborating with global big tech companies. Building on its expertise and capabilities in data center operations, SK Horizon will be responsible for expanding infrastructure, including existing key AIDCs and submarine cables. SK Hyper will focus on business development for new AIDC projects, with 5 GW of capacity targeted for phased opening in 2029 and expansion toward a total capacity of 15 GW in 2035,” it added further.

The surviving company, SK Broadband, is looking to strengthen the competitiveness of its fixed-line, media, and enterprise businesses through AX-driven innovation in products and services while sustaining solid growth. It also plans to accelerate future growth by actively identifying new business models.

“With the aim of completing the spin-off and establishing the new company in the first quarter of 2027, the necessary procedures, including an extraordinary general meeting of shareholders and government approvals, will be carried out,” said Kim Seong-soo, CEO of SK Broadband.

“This governance restructuring is a proactive measure aimed at strengthening expertise and enabling faster execution in the AIDC business. As an AIDC infrastructure company, we will continue to scale up SK Horizon and grow it into Korea’s leading data center operator,” the senior official stated further.

“We are pleased to support SKT as it establishes SK Horizon and expands its AI data center infrastructure platform in Korea. SK Horizon brings together an established operating platform, capacity under development, and a strong strategic partner. Korea’s advanced digital ecosystem and growing demand for AI capacity provide a strong foundation for SK Horizon’s next phase of growth,” said Keith Kim, Partner at KKR.

“AI data centers and submarine cables will be among the core infrastructure assets shaping Korea’s digital sovereignty and industrial competitiveness going forward. By investing in SK Horizon with long-term funds from Korea’s top institutional investors, the IMM Investment-led group hopes to create a stable growth system that blends the financial power of our global partner with the reliability of local funds,” said Kim Byung-hun, Head of Infrastructure at IMM Investment.

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