AI infrastructure business restructured; SK Broadband to be split

SK Horizon to handle operations; SK Hyper to develop gigawatt-scale projects

SK Telecom to oversee AI DC business; surviving SKB to focus on wired and media services

SK Telecom's Euljiro headquarters. [SK Telecom]
SK Telecom's Euljiro headquarters. [SK Telecom]

SK Telecom plans to establish SK Horizon, a dedicated AI data center company, through a spinoff of SK Broadband. Global investment firm KKR (Kohlberg Kravis Roberts) and domestic investment consortium IMM — comprising IMM Investment and Stonebridge Capital — will invest about 3 trillion won ($2.17 billion) in SK Horizon.

Under the restructuring, SK Telecom will oversee the group's overall AI data center business, while SK Hyper will focus on developing gigawatt-scale projects, with each entity taking on a distinct role in the AI infrastructure push. The company said it aims to position itself as a hub for AI infrastructure across Asia.

SK Telecom announced Thursday that it will pursue a spinoff of SK Broadband, creating a surviving entity under the SK Broadband name and a newly established company, SK Horizon. The split ratio, based on net asset book value, is approximately 0.84 for the surviving company and 0.16 for the new entity.

The company is targeting completion of the split and formal establishment of SK Horizon in the first quarter of next year, and will proceed with related steps including regulatory approvals and an extraordinary shareholders' meeting. SK Broadband CEO Kim Sung-soo will concurrently serve as CEO of SK Horizon. KKR and the IMM consortium have agreed to invest 3.08 trillion won in the newly established company.

SK Telecom, SK Horizon and SK Hyper are set to divide responsibilities as the group throws its full weight behind AI infrastructure.

SK Horizon will spearhead the expansion of AI data center operations, leveraging its operational expertise and agile decision-making. Specifically, it will take charge of scaling a total of 318 megawatts of infrastructure — encompassing eight existing data centers in Seocho, Ilsan (two sites), Bundang, Gasan, Centum, Yangju and Pangyo, as well as new AI data centers under construction in Ulsan and Guro. The company will also expand its submarine cable network in stages to support global AI operations.

SK Telecom will direct overall strategy and business direction for the group's AI data center operations and handle collaboration with global big-tech companies. SK Hyper, established in July, will concentrate on developing new AI data center projects aimed at a phased rollout — reaching 5 gigawatts by 2029 and 15 gigawatts by 2035.

The surviving SK Broadband will strengthen its competitiveness in wired, media and enterprise services through AI transformation.

SK Telecom also signed agreements with KKR and the IMM consortium Thursday for equity investment in the new company totaling about 3.08 trillion won.

Upon completion of the phased investment, KKR and the IMM consortium will hold 29 percent and 20 percent stakes in SK Horizon, respectively. SK Telecom will remain the largest shareholder with a 51 percent stake and retain management control.

KKR is one of the world's most active infrastructure investors, managing more than $100 billion in infrastructure assets. The investment is part of KKR's Asia-Pacific infrastructure strategy.

IMM Investment is a leading Korean alternative asset manager with more than $7.5 billion under management across venture capital, growth capital and infrastructure. Stonebridge Capital is a domestic private equity fund manager that has invested in leading companies in growth industries, with cumulative assets under management of about $2.5 billion.

The proceeds will be used to further expand SK Horizon's AI data center capacity and build out AI data center infrastructure.

"This governance restructuring is a preemptive move to secure specialized expertise and swift execution in the AI data center business," SK Broadband CEO Kim Sung-soo said. "As an AI data center infrastructure company, we will continue to grow SK Horizon into the top data center operator in Korea."


ko@heraldcorp.com