11st to Become SK Planet Subsidiary... "Creating Synergy Between OK Cashback and E-Commerce"

SK Planet Acquires 100% Stake in 11st
"Optimal Solution for Future Growth and Stakeholder Interests"
"Enhancing Corporate Value Through SK Planet-11st Synergy"

11st will become a subsidiary of SK Planet.

On October 29, SK Square held a board meeting and finalized the decision to sell its entire 100% controlling stake in 11st to SK Planet. As a result, the governance structure has changed to SK Square-SK Planet-11st. Previously, SK Square held both SK Planet and 11st as separate subsidiaries, but with this sale, 11st will become a wholly owned subsidiary of SK Planet.

Going forward, SK Planet and 11st plan to focus on generating synergy between their respective core businesses, 'OK Cashback' and 'e-commerce.' SK Planet aims to enhance the competitiveness of OK Cashback by expanding mileage accrual and usage options based on the 11st commerce platform. Additionally, by combining OK Cashback with 11st's 11pay (simple payment), they will establish a 'payment to points accrual' service.

11st has announced its vision to evolve into 'AI-based context commerce.' The goal is to create a commerce platform where AI comprehensively understands customers' purchasing patterns and preferences to recommend personalized products. 11st and SK Planet plan to integrate their AI and data technology capabilities to develop 11st into a differentiated commerce platform.

In the future, the two companies aim to continue improving performance by focusing on sales growth driven by profitability. Currently, the integrated mileage platform 'OK Cashback' app from SK Planet has a monthly average user (MAU) base of 2.5 million, with annual points accrual and usage reaching 400 billion won. 11st's MAU stands at 8.6 million, ranking second among domestic e-commerce companies, and its annual transaction volume is about 5 trillion won.

Meanwhile, SK Planet plans to make a lump-sum payment of 467.3 billion won within this year to 11st's financial investors in exchange for acquiring their shares in 11st. The financial investors in 11st will recover their previous investments by exercising their tag-along rights and selling their entire stake in 11st, including the portion held by SK Square, to SK Planet.

The funds for acquiring 11st's shares for this transaction will be sourced from SK Square's capital increase and SK Planet's own funds. Additionally, SK Square's stakes in Sparkplus (shared office), Haegin (gaming), and Korbit (virtual asset exchange) will be reorganized under SK Planet. Going forward, SK Planet plans to further strengthen the OK Cashback business in connection with these ventures.

Regarding this restructuring, SK Square, SK Planet, and 11st stated, "This is the optimal solution for future growth and for all stakeholders of SK Square, SK Planet, and 11st, including shareholders, investors, sellers, and customers, to achieve a win-win outcome," adding, "With this restructuring, SK Planet and 11st, which both need new growth momentum, will be able to focus on increasing corporate value through mutual synergy."