[SKT New Investment Roadmap] Park Jung-ho "Considering M&A Domestically and Abroad"... Semiconductor Investment Kicks Off

Roadmap Unveiled After Personnel Split Between Telecom Company and Investment Firm

[Asia Economy Reporter Seulgina Cho] "We will review deals and invest regardless of domestic or international markets, focusing on tech and platforms."

The newly established company 'SKT New Investment (tentative name)', which will be spun off from SK Telecom in November, has taken on the role of intensifying semiconductor investments, growing as a core cash cow of the group in place of its subsidiary SK Hynix. From media and mobility to blockchain and other future new technologies, it will cover all potential growth opportunities in the semiconductor and ICT sectors as an "Investing Producer."

◆ "Role as Investing Producer" Announces 5 Trillion KRW Investment Over 3 Years

At the investor briefing held on the afternoon of the 14th, SK Telecom CEO Jung-ho Park presented SKT New Investment's portfolio, which includes ▲ 'High-tech' centered on semiconductors ▲ 'Big Tech' (life platform) such as media, commerce, and mobility ▲ 'Deep Tech' (global ICT) including digital healthcare. CEO Park defined SKT New Investment's role as an "Investing Producer" and emphasized that "investment areas will focus on tech and platform sectors." A total investment of 5 trillion KRW is planned over the next three years.

The highest priority is semiconductor investment. As a core revenue source of the group and under the new company, SK Hynix, the focus is on creating synergy. SKT New Investment has set a strategy to secure future semiconductor technologies by discovering early investment opportunities on behalf of SK Hynix, which faced many restrictions on business expansion due to governance structure. It will also invest in businesses complementary to SK Hynix to build a semiconductor ecosystem. CEO Park, who also serves as Vice Chairman of SK Hynix, stated, "SK Hynix will expand its existing memory business while discovering new businesses," and predicted, "We will evolve into a total semiconductor solution provider."

In the Big Tech sector, the goal is to build a "life platform" centered on media, commerce, mobility, and security, led by new ICT subsidiaries such as Wavve, 11st, and T map Mobility. They plan to expand areas connected to customers' daily lives from sleep to work and leisure every hour.

Park, known as an "M&A strategist" who led the acquisition of Hynix during the semiconductor crisis, will pursue a "bolt-on" strategy to maximize synergy by acquiring related or similar industry companies. Subsidiaries in the Big Tech sector are also scheduled for IPOs starting with One Store in the second half of this year.

Finally, the Deep Tech sector refers to investments in high-growth future innovative technologies such as digital healthcare, quantum cryptography security, and blockchain, based on a high understanding of technology. Before the corporate split, SK Telecom continued investments in quantum cryptography security (IDQ), digital healthcare (Nanox), and future media (Krafton). The new company is exploring new investment opportunities not only in these businesses but also in other deep tech areas such as blockchain.

◆ Targeting 75 Trillion KRW Net Asset Value by 2025

CEO Park highlighted SKT New Investment's investment strategy and competitiveness as ▲ flexible investment execution without being constrained by management rights ▲ building next-generation ecosystems based on relevant industry experience ▲ management team with over 20 years of expertise in each industry. The goal is to raise the company's net asset value to around 75 trillion KRW, three times the current level, by 2025 through active investment.

He explained, "We will execute flexible investments that cover even areas without synergy," and "We will pursue a return-focused 'portfolio in and out' without being constrained by management rights." He also set a policy to build a structurally successful ecosystem from the investment review stage.

The new company will include CEO Park along with Yoon Poong-young, SK Telecom CFO involved in the Hynix acquisition, and Noh Jong-won, SK Hynix CFO. Heo Seok-jun, head of SK Telecom's Private Placement Group with extensive private equity experience, and Song Jae-seung, head of SK Telecom's Corporate Development Group from a major investment bank background, were also appointed as professional executives. The leadership of major subsidiaries such as ADT Caps and 11st will remain unchanged. All are individuals with over 20 years of expertise in their respective industries.

The personnel split, which divides the company into a telecommunications company and a new company after 37 years since its founding, will be finalized within this year following a shareholders' meeting on October 12. The split date is November 1, and the date for change of listing and re-listing is scheduled for November 29. The surviving telecommunications company will focus on subscription marketing, metaverse, cloud, and data centers based on artificial intelligence (AI) and digital infrastructure. The sales target for 2025 is 22 trillion KRW.