SK Telecom is restructuring its AI infrastructure division by spinning off SK Broadband’s data center and submarine cabl
SK Telecom announced today that it will split its wholly owned subsidiary SK Broadband into a surviving company, which will retain the SK Broadband name, and a newly established company named SK Horizon. In connection with this spinoff, SK Telecom has signed a definitive agreement with funds managed by KKR and the IMM Investment-Stonebridge consortium for a combined KRW 3.08 trillion equity investment in SK Horizon. Based on net asset book value, the spinoff ratio is set at 0.8351323 (approximately 0.84) for the surviving company and 0.1648677 (approximately 0.16) for SK Horizon. The surviving company will focus on innovation across its fixed-line, media, and enterprise segments, while SK Horizon will drive the expansion of Korea’s leading AI data center infrastructure.
SK Horizon will manage the expansion of eight operational data centers located in Seocho, Ilsan (two locations), Bundang, Gasan, Centum, Yangju, and Pangyo, as well as new facilities under construction in Ulsan and Guro, targeting a total capacity of 318 MW. It will also oversee the phased expansion of submarine cable infrastructure critical for global AI operations. SK Telecom will retain oversight of the group’s overall AI data center strategy and global tech partnerships, while a separate specialized entity, SK Hyper, will handle business development for new projects. SK Hyper aims to phase open 5 GW of capacity by 2029 and expand toward 15 GW by 2035. Following the establishment of SK Horizon early next year, Kim Seong-soo is expected to concurrently serve as chief executive officer of both the surviving SK Broadband and SK Horizon, subject to board approval.
The KRW 3.08 trillion investment from KKR and the IMM consortium will provide capital for SK Horizon’s growth as an AI data center platform. Upon completion of all investment phases, KKR and the IMM consortium will hold 29 percent and 20 percent stakes respectively, while SK Telecom will maintain management control with a 51 percent stake. KKR brings over USD 100 billion in infrastructure assets under management and more than USD 70 billion invested in digital and power assets, deploying this capital primarily through its Asia Pacific infrastructure strategy. The IMM Investment-Stonebridge Consortium consists of IMM Investment, founded in 1999 with over USD 7.5 billion in assets under management, and Stonebridge Capital, founded in 2008 with approximately KRW 3.6 trillion (USD 2.5 billion) in cumulative assets under management.
The spinoff and new company establishment are scheduled for completion in the first quarter of next year, pending an extraordinary general meeting of shareholders and necessary government approvals. Regarding the restructuring, Kim Seong-soo, CEO of SK Broadband, said, "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." Keith Kim, Partner at KKR, added, "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." Kim Byung-hun, Head of Infrastructure at IMM Investment, noted, "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 on the back of long-term capital from Korea's leading institutional investors, the IMM Investment-led consortium aims to build a sustainable growth structure that combines the capital strength of our global partner with the stability of domestic capital."