SK Telecom to split in two with new company overseeing non-mobile units

SK Telecom will create a new holding company to oversee operations of its non-mobile affiliates and subsidiaries and focus on investments in semiconductor-related companies.

The company's non-mobile affiliates include memory chip giant SK hynix Inc., ride-hailing company T Map Mobility Co., and e-commerce firm 11Street Co.

The parent SK Group wants to tighten its grip on SK hynix and help it aggressively expand investments even after it acquired Intel's NAND memory business in October last year for US$9 billion.

The remaining entity will focus on the traditional telecom business while expanding to new sectors, including artificial intelligence and data centers.

The details of the spinoff would be decided within the first half of this year.

The mobile carrier's non-mobile subsidiaries accounted for 24 percent of the company's total operating profit last year.

The subsidiaries have also formed global partnerships with T Map Mobility collaborating with US-based ride-hailing firm Uber Technologies to form a local taxi-hailing joint venture.

Meanwhile, 11Street joined hands with Amazon.com Inc. with plans to bring the US retail giant's products to South Korean consumers.

Analysts speculated that the corporate revamp would lead to a merger between SK Inc., SK Group's holding company, and SK Telecom's new holding company to elevate the status of SK hynix in the conglomerate.

A merger would also give the SK conglomerate direct control over the memory chip giant.

But SK Telecom denied the claim.

SK Telecom would need to spend around 10 trillion won to raise its stake in SK hynix.