SKT New Company to Launch as 'SK Square' in November... Focused on Semiconductor and ICT Investments

Jung-ho Park, CEO of SK Telecom

[Asia Economy Reporter Seulgina Cho] SK Group's investment specialist company, ‘SK Square,’ will be launched this November.

SK Telecom announced on the 17th that it has decided to name the newly established investment company, created through a spin-off, ‘SK Square.’ The surviving company will retain the name ‘SK Telecom.’

SK Telecom plans to finalize the spin-off plan at an extraordinary general meeting of shareholders on October 12 and officially launch SK Telecom (the surviving company) and SK Square (the newly established company) on the split date, November 1. The newly formed SK Telecom and SK Square aim to accelerate growth in AI and digital infrastructure businesses based on telecommunications and in semiconductor and ICT investment sectors, respectively.

◆SK Square Accelerates ‘Future Business’... Targets Net Asset Value of 75 Trillion KRW by 2025

The name SK Square for the new company reflects confidence and determination toward the future, aiming to lead investment and innovation in the semiconductor and ICT industries through business restructuring.

‘Square,’ meaning ‘plaza’ or ‘power of two,’ represents a vision to encompass various ICT industries and foster sustainable future value together with society and shareholders through convergence and innovation.

SK Square has set a goal to become a ‘global ICT investment specialist company’ by actively investing and securing technological capabilities across a diverse ICT portfolio ranging from semiconductors to future innovative technologies, while accelerating global super-cooperation.

CEO Jung-ho Park has repeatedly emphasized the importance of bold and swift investment and securing future growth engines to overcome and proactively respond to the accelerating changes and crises following the pandemic, stressing his commitment to advancing the Korean ICT ecosystem.

Based on this strategy in the semiconductor and ICT sectors, SK Square plans to grow its net asset value (NAV) to 75 trillion KRW by 2025, three times the current size, through ▲ aggressive investment and M&A ▲ growth of new ICT portfolios ▲ creation of new future growth engines.

In the semiconductor field, SK Square intends to enhance synergy with SK Hynix through aggressive investments and mergers and acquisitions (M&A), while focusing on strengthening Korea’s status as a semiconductor powerhouse by contributing to the government and private sector’s joint efforts to establish the ‘K-Semiconductor Belt.’

Additionally, in various new ICT areas such as app markets (One Store), commerce (11st), converged security (ADT Caps), and mobility (T map Mobility), SK Square plans to accelerate growth by continuously strengthening its portfolio through proactive investments and super-cooperation with global big tech companies.

Furthermore, SK Square will continue proactive investments in high-growth future innovative technologies such as quantum encryption, digital healthcare, and future media content. The profits generated will be reinvested into research and development (R&D), establishing a virtuous cycle for future technology commercialization.

CEO Park is scheduled to be appointed as the CEO of SK Square, which will officially launch in November following the extraordinary shareholders’ meeting and board meeting in October.

CEO Park stated, “The newly launched SK Square will leap forward as a global ICT investment specialist company, promoting future core industries such as semiconductors and leading ecosystem revitalization,” adding, “Through this, we will contribute to the development of Korea’s economy and industry.”

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