[Shareholders Meeting] SKT Park Jung-ho "Governance Restructuring Will Definitely Be Implemented This Year... Details Soon"

[Asia Economy Reporter Joeslgina] SK Telecom has officially confirmed that it will soon concretize and execute within this year the transition to an intermediate holding company, which is effectively a 'deadline' this year.

Park Jung-ho, CEO of SK Telecom, stated at the SK Telecom regular shareholders' meeting held on the morning of the 25th at T Tower in Euljiro, Seoul, "We will definitely implement the governance restructuring this year to ensure that shareholders receive the greatest benefits."

He said, "I have thought that restructuring is necessary because the current portfolio, including subsidiaries, is not sufficiently covered," adding, "I have been considering this for a long time and believe it is feasible to execute this year." He continued, "Not in the first half, but I will explain separately as soon as it is concretized."

Park CEO emphasized, "I do not think the market value is sufficiently reflected in the stock price compared to the portfolio," and added, "We will definitely implement a plan this year to fully capture the portfolio value." SK Telecom faces the task of completing the transition to an intermediate holding company within this year due to the enforcement of the Fair Trade Act next year. Enhancing corporate value is essential for this.

Industry insiders believe that if SK Telecom transitions to an intermediate holding company, a spin-off separating the investment company and the business company specializing in telecommunications is the most likely plan. The investment company would have subsidiaries such as SK Hynix and 11st, accelerating growth in new businesses.

Currently, SK Group's governance structure flows from the owner family → SK Inc. → SK Telecom → SK Hynix. SK Hynix is a grandchild company of SK Inc. However, if SK Telecom becomes an intermediate holding company, SK Hynix's status will change to a subsidiary, and the shackles that have hindered aggressive group-level investments and mergers and acquisitions (M&A) will be lifted.

On this day, SK Telecom resolved to amend part of its articles of incorporation to delete interim dividends and introduce quarterly dividends. Park CEO said, "Quarterly dividends have been evaluated as more aligned with shareholders' global standards," adding, "It is expected to increase predictability and further enhance shareholder value." Regarding questions about the total dividend amount, he responded, "There is no need to worry that dividends will be reduced compared to now."

Additionally, Park CEO directly mentioned Coupang's recent listing on the New York Stock Exchange, evaluating it as "Coupang's 100 trillion won listing is a positive signal for the commerce business and signifies the emergence of a strong competitor domestically." He continued, "SK Telecom has been steadily preparing cooperation with Amazon since last year," declaring, "In the second half of this year, we will present a new experience of global products that Korean citizens have not had before and bring about a commerce revolution."

The market is also closely watching whether SK Telecom will acquire eBay Korea. If SK Telecom acquires eBay Korea following the super cooperation with Amazon, 11st, which had relatively lagged in domestic e-commerce market share, will instantly rise to the big three. When asked about the intention to acquire eBay Korea, he said, "We need to participate in a portfolio with influence and a structure that is not binding to flexibly execute strategy," adding, "Since it is a matter of strategy, it is difficult to speak specifically."

Park CEO repeatedly emphasized that since his inauguration, the growth of new business sectors such as commerce, media, and security has become clear, evaluating that "We are growing healthily as a new ICT portfolio company, not just a simple mobile telecommunications infrastructure company."

This content was produced with the assistance of AI translation services.