SK Telecom secures 3.08 trillion won for new SK Horizon data center entity

SK Telecom is attracting approximately 3.08 trillion won in investment for SK Horizon, a newly established entity formed by spinning off the data center and undersea cable businesses from SK Broadband. The investment includes 1.2 trillion won in new shares for SK Horizon to expand AI data center infrastructure and 1.88 trillion won from the sale of existing shares. Key investors include KKR, which will hold a 29% stake, and a consortium consisting of IMM Investment and Stonebridge Capital, which will hold 20%.

Following the spin-off, the SK Broadband labor union has raised concerns regarding the future growth resources of the remaining company. The union is demanding that a portion of the 1.88 trillion won generated from the sale of existing shares be reinvested into SK Broadband to ensure its competitiveness in AI transformation and media services. While SK Broadband management maintains that the spin-off will improve the company's financial health by transferring data center-related debt to the new entity, the union is calling for specific investment plans and compensation for employees affected by the restructuring.