SK Networks to Acquire Electric Vehicle Fast Charging Company 'Estraffic'

Decision to Acquire 50.1% Stake
Challenging No.1 Position in Electric Vehicle Charging Market

[Asia Economy Reporter Kiho Sung] SK Networks is challenging to become the number one in the electric vehicle (EV) charging market by acquiring a leading company in the fast charging industry.

On the 23rd, SK Networks held a board meeting and approved the agenda for 'investment in the electric vehicle charging business.' This involves acquiring existing shares and participating in a paid-in capital increase of a new corporation (tentatively named SS Charger Co., Ltd.) to be established by a physical division of the EV charging business unit of Estraffic. SK Networks will invest a total of 72.8 billion KRW to secure a 50.1% stake. Anchor Equity Partners will also participate in this investment, holding a final 29.0% stake, and Estraffic will continue to participate in management through sustained shareholding.

Estraffic's EV charging business unit currently operates about 1,100 fast chargers for electric vehicles. This is the largest scale among private fast charging operators, excluding public sectors such as the Ministry of Environment and Korea Electric Power Corporation. It holds numerous partnerships with public institutions, automobile manufacturers, large marts, and corporate taxi companies, and especially secures excellent charging locations in the metropolitan area where the number of EVs is high. Based on this, it has differentiated competitiveness, such as launching the industry's first subscription membership, 'Lucky Pass.'

SK Networks decided on this investment to leap forward as the number one player in the rapidly growing EV charging market. Through this, it expects not only to secure new growth engines but also to enhance the achievements of ESG management, which it has continuously pursued. In particular, business expansion linked with 'Everon,' the second-largest slow EV charger company invested in by SK Networks earlier this year, is anticipated. Additionally, synergy is expected with SK Rent-a-Car's plans to convert all of its approximately 200,000 vehicles to electric by 2030 and to establish the largest EV rental complex in Jeju, South Korea. Furthermore, Speedmate, which has a nationwide maintenance network, and SK Networks Service, which has communication network maintenance capabilities, are also expected to explore new opportunities related to the EV charging business. Moreover, various collaborations in terms of members, customers, data, and technology within the group are anticipated.

The new corporation is scheduled to officially launch by the end of this year after going through Estraffic's shareholders' meeting for the division of the EV charging business unit in October and completing all transaction procedures. SK Networks plans to enhance the corporate value of the new corporation through cooperative management that leverages the expertise of its partners.

Lee Hojung, Head of New Growth Promotion at SK Networks, said, "Given the reality of insufficient infrastructure compared to the demand for EV charging, the market potential is high, and the alignment with our capabilities is strong, so we can nurture this as a new growth engine for the company." He added, "We will strengthen organic cooperation with our partners to successfully complete the remaining acquisition procedures and continuously expand economic and social value creation as the No.1 company in the EV charging industry."

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