South Korea’s SK Telecom said on August 27 that it plans to spin-off the data center and submarine cable businesses of its wholly owned subsidiary SK Broadband into a new company, SK Horizon.

It also signed an agreement for a combined 3.08 trillion won (US$2.23 billion) equity investment from funds managed by KKR and the IMM Investment-Stonebridge consortium to support expansion.

After all investment phases are completed, SK Telecom will retain a 51% stake in SK Horizon, while KKR and the IMM consortium will hold 29% and 20%, respectively.

SK Horizon will include eight operating data centers, as well as AI data centers under construction in Ulsan and Guro.

The remaining company, SK Broadband, will focus on fixed-line, media, and enterprise businesses.

SK Telecom said it aims to complete the spinoff and establish the new company in the first quarter of 2027, pending shareholder approval at an extraordinary general meeting and government approvals.

The move is part of the telecom firm’s AI infrastructure plan, which includes building up to 15 gigawatts of AI data center capacity in Korea.

🔗 Source: SK Telecom

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