SK Telecom Spins Off SK Broadband to Launch AIDC Specialist ‘SK Horizon’… Secures ₩3.08 Trillion — BigGo Finance

SK Telecom has carved out its artificial intelligence data center business into a separate entity and secured over ₩3 trillion (approximately $2.2 billion) in funding from domestic and international investors. The company spun off SK Broadband’s data center and submarine cable businesses to establish “SK Horizon,” attracting approximately ₩3.08 trillion (approximately $2.2 billion) in equity investment from KKR and an IMM Investment-Stonebridge Capital consortium.

SK Telecom announced on the 27th that it will split its wholly owned subsidiary SK Broadband into a surviving company and a newly established entity, SK Horizon. The split ratio was determined based on net asset book value at 0.8351323 (approximately 0.84) for the surviving company versus 0.1648677 (approximately 0.16) for the new entity.

The surviving company, SK Broadband, will drive innovation in wireline, media, and enterprise businesses, while the newly established SK Horizon will focus exclusively on expanding South Korea’s AIDC infrastructure. SK Horizon will take over a total of 318 megawatts (MW) of infrastructure, including eight operating data centers in Seocho, two in Ilsan, Bundang, Gasan, Centum, Yangju, and Pangyo, as well as AIDCs under construction in Ulsan and Guro. The company also plans to expand submarine cable construction in phases, which is essential for global AI operations.

KKR and IMM Consortium Invest ₩3.08 Trillion, SK Telecom Retains Management Control

Alongside the corporate split, SK Telecom signed definitive agreements with KKR and the IMM Investment-Stonebridge Capital consortium for equity investment in the new entity. The total transaction size is approximately ₩3.08 trillion (approximately $2.2 billion).

Upon completion of the phased investment, SK Telecom will hold a 51% stake in SK Horizon, maintaining its position as the largest shareholder with management control. KKR will secure 29%, and the IMM consortium will hold 20%. The funds raised will be used for SK Horizon’s future investments, including additional AIDC expansion and related infrastructure development.

KKR is a global investment firm managing over $100 billion (approximately ₩138 trillion) in infrastructure assets. This investment was made as part of KKR’s Asia-Pacific infrastructure investment strategy. IMM Investment manages over $7.5 billion (approximately ₩10.4 trillion) across venture capital, growth equity, and infrastructure, while Stonebridge Capital is a South Korean private equity firm with approximately $2.5 billion (about ₩3.5 trillion) in cumulative assets under management.

Note: Based on completion of phased investment

Kim Yang-han, KKR’s Head of Infrastructure for Northeast Asia, said, “SK Horizon has a stable operating platform, a new pipeline, and strong strategic partners. We expect the growing demand for South Korea’s digital ecosystem and AI capacity to serve as a solid foundation for SK Horizon’s future growth.”

Kim Byung-hun, Head of Infrastructure at IMM Investment, stated, “AI data centers and submarine cables are core infrastructure that will determine South Korea’s digital sovereignty and industrial competitiveness going forward. We will build a sustainable growth structure based on long-term capital from leading domestic institutional investors.”

SK Telecom, SK Horizon, and SK Hyper Complete Three-Pronged Structure

With this governance restructuring, SK Telecom has completed its AIDC execution framework centered on SK Horizon and SK Hyper, a specialized company established in July.

SK Telecom will oversee the group’s overall AIDC business, providing strategic direction and collaborating with global big tech companies. SK Horizon will be responsible for expanding infrastructure including existing core AIDCs and submarine cables, leveraging its data center operational expertise and capabilities. SK Hyper will focus on developing new AIDC projects, targeting a phased opening of 5 gigawatts (GW) by 2029 and expansion to 15GW by 2035.

Note: Based on SK Telecom announcement

With the AIDC business separated, SK Broadband plans to strengthen the competitiveness of its wireline, media, and enterprise businesses through AX-based product and service innovation, while exploring new business models.

SK Horizon will be led by Kim Sung-soo, CEO of SK Broadband, who will serve concurrently, with final confirmation subject to board approval of the new entity upon completion of the split. He emphasized, “This governance restructuring is a proactive measure to secure expertise and rapid execution capability in the AI DC business. As an AI DC infrastructure company, we will continuously scale up SK Horizon to grow it into South Korea’s leading DC operator.”

SK Telecom plans to complete the final split and establishment of SK Horizon in the first quarter of next year, following government approvals and an extraordinary shareholders’ meeting. SK Telecom’s AIDC revenue in the second quarter of this year reached ₩136.2 billion (approximately $98.7 million), up 92.5% year-over-year. The spin-off is seen as clarifying the execution entity responsible for investment, construction, and operation of the hyperscale AI infrastructure business.