[SKT New Investment Roadmap] 5 Trillion KRW Investment in Semiconductors and ICT Over 3 Years... Net Asset Value Tripled

[Asia Economy Reporter Seulgina Jo] The investment company ‘SKT Sinseol Investment (tentative name)’, which is being spun off from SK Telecom, will invest 5 trillion won in semiconductors and ICT new industries over the next three years. The goal is to increase the net asset value by 2025 to around 75 trillion won, which is three times the current level.

According to related industries on the 15th, Park Jung-ho, CEO of SK Telecom, attended an investor briefing held at the Four Seasons Seoul Hotel the previous afternoon and revealed the vision and strategy following the spin-off into a telecommunications company (SK Telecom) and an investment company (SKT Sinseol Investment).

▶Related article page 3 <[SKT Sinseol Investment Roadmap] Park Jung-ho "Considering M&A domestically and internationally"... Semiconductor investment in full swing>

SKT Sinseol Investment, which will launch this November, will build a portfolio focused on ▲ ‘High-tech’ centered on semiconductors ▲ ‘Big Tech (Life Platform)’ including media, commerce, and mobility ▲ ‘Deep Tech (Global ICT)’ such as digital healthcare.

Park, the CEO who will lead SKT Sinseol Investment, stated, "As a semiconductor and ICT investment specialist company, we aim to play the role of an ‘Investing Producer’," adding, "We target an annual 30% growth in net asset value through active investment and portfolio growth." This forecasts growth from about 26 trillion won in net asset value after the spin-off to the 75 trillion won range by 2025.

The 5 trillion won investment fund will be raised through asset securitization (1 trillion won), dividends from subsidiaries (1 trillion won), bond issuance (1 trillion won), and funds/joint investments (2 trillion won). CEO Park emphasized, "The new corporation’s investment areas will focus on tech and platform sectors," and "We will review and invest in deals regardless of domestic or international locations." Semiconductor investment, considering synergy with subsidiary SK Hynix, is expected to be prioritized. On this day, CEO Park also reaffirmed the existing position that overseas companies, including Amazon, could enter as strategic investors.

Meanwhile, this spin-off will be completed within the year after a shareholders’ meeting on October 12. The spin-off date is November 1, and the scheduled dates for change of listing and re-listing are November 29. The surviving telecommunications company will focus on subscription marketing based on artificial intelligence (AI) and digital infrastructure, metaverse, cloud, and data centers. The goal is to achieve sales of 22 trillion won by 2025.