[Asia Economy Reporter Ki-min Lee] SK Networks has decided to spin off its Mintit and TirePick businesses through capital contributions as part of building a future-oriented business portfolio by simultaneously fostering capable subsidiaries.
On the 3rd, SK Networks held a board meeting and announced that it decided to transfer the assets and organization of the Mintit business division to its subsidiary Mintit Co., Ltd., and the TirePick business to the newly established Cartini Co., Ltd. The spin-off will be conducted by acquiring new shares of the subsidiaries equivalent to the transfer price. The transfer prices are 36.7 billion KRW for Mintit and 17.9 billion KRW for TirePick.
Mintit is a brand that creates a used phone distribution culture and generates social value through 'Mintit ATM,' Korea's first AI-based used phone purchasing machine. Currently, the assets, contracts, liabilities, and all related matters, which are divided between SK Networks' Mintit business division and the subsidiary Mintit Co., Ltd., will be integrated into the subsidiary.
Going forward, Mintit plans to build a recycling platform through partnerships with various businesses and enhance ESG (Environmental, Social, and Governance) execution capabilities, while also aiming to enter the global market based on technology recognized by Korean customers.
Starting in 2019 with a business model where tires are purchased and paid for online and installed offline, the O2O (Online to Offline) shopping mall 'TirePick,' which has expanded its scope to batteries, has received high customer response by offering services such as tire size and battery specification inquiries based on vehicle license plate data through its data management technology.
Through this spin-off, TirePick plans to accelerate attracting investors and expanding product categories to grow as an online platform operator.
The spin-offs of the two brands will be completed by the end of September. SK Networks is expected to strengthen its role in establishing comprehensive strategies and managing its existing businesses and investment companies while seeking additional growth opportunities.
An SK Networks official said, "This decision is to strengthen business expertise under a swift decision-making system and to foster the subsidiaries as platform operators representing each industry. We will not only help enhance the value of the subsidiaries but also continuously secure new growth momentum to create a competitive business portfolio unique to SK Networks."
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