South Korean telecommunications major SK Telecom has announced the launch of SK Horizon, a new artificial intelligence data center company to operate and expand its existing AI DC infrastructure. SKT has also entered into a definitive agreement with funds managed by KKR, a leading global investment firm, and the IMM Investment-Stonebridge consortium for a combined KRW 3.08 trillion (~ US$ 2.2 billion) equity investment in SK Horizon.
In a press release, SK Telecom said that it will split its wholly owned subsidiary SK Broadband into a surviving company (SK Broadband) and a newly established company (SK Horizon). While SK Broadband will focus on innovation in its fixed-line, media, and enterprise businesses, SK Horizon will focus on expanding AIDC infrastructure.
As investors in the newly established company, KKR and the IMM consortium will provide capital to support SK Horizon’s expansion as an AI data center infrastructure platform. Upon completion of all phases of the investment under the transaction, KKR and the IMM consortium will hold 29 percent and 20 percent stakes in SK Horizon, respectively, while SKT will retain management control as the largest shareholder with a 51 percent stake. SK Telecom said that based on the book value of net assets, the spin-off ratio has been set at 0.8351323 (approximately 0.84) for the surviving company and 0.1648677 (approximately 0.16) for the newly established company.
It further said that SK Horizon, whose name reflects its ambition to “open new horizons” in the AIDC sector, will be responsible for expanding its infrastructure to a total capacity of 318 MW, encompassing eight data centers already in operation. These are Seocho, Ilsan (2 locations), Bundang, Gasan, Centum, Yangju and Pangyo. New AIDCs currently under construction, including those in Ulsan and Guro, will also be under its purview. Moreover, SK Horizon will also pursue the phased expansion of its submarine cable infrastructure, which is essential for global AI businesses.
SK Telecom expects its streamlined decision-making structure to enable the company to secure funding more effectively for key business areas, including through external investment. With this governance restructuring, SKT has completed the establishment of a full-scale AIDC business structure together with SK Horizon and SK Hyper, a specialized company established recently. SK Hyper will focus on business development for new AIDC projects, with 5 GW of capacity targeted for phased opening in 2029 and expansion toward a total capacity of 15 GW in 2035.
“This governance restructuring is a proactive measure aimed at strengthening expertise and enabling faster execution in the AIDC business,” said Kim Seong-soo, CEO of SK Broadband. “As an AIDC infrastructure company, we will continue to scale up SK Horizon and grow it into Korea’s leading data center operator.”
Kim Seong-soo, CEO of the surviving company SK Broadband, is expected to concurrently serve as CEO of the new company, SK Horizon. The appointment will be finalized through a resolution of the Board of Directors following the completion of the company’s establishment early next year.
“We are pleased to support SKT as it establishes SK Horizon and expands its AI data center infrastructure platform in Korea,” said Keith Kim, Partner at KKR. “SK Horizon brings together an established operating platform, capacity under development and a strong strategic partner. Korea’s advanced digital ecosystem and growing demand for AI capacity provide a strong foundation for SK Horizon’s next phase of growth.”
KKR is one of the most active infrastructure investors globally, with over USD 100 billion in infrastructure assets under management and more than USD 70 billion invested across digital and power assets. KKR is making this investment primarily from its Asia Pacific infrastructure strategy.
“AI data centers and submarine cables will be among the core infrastructure assets shaping Korea’s digital sovereignty and industrial competitiveness going forward,” said Kim Byung-hun, Head of Infrastructure at IMM Investment. “By investing in SK Horizon on the back of long-term capital from Korea’s leading institutional investors, the IMM Investment-led consortium aims to build a sustainable growth structure that combines the capital strength of our global partner with the stability of domestic capital.”
The IMM Investment-Stonebridge Consortium comprises two leading South Korean investment firms, IMM Investment and Stonebridge Capital. IMM Investment, founded in 1999, is a South Korean alternative investment firm with over US$ 7.5 billion in assets under management across venture capital, growth equity, and infrastructure. Stonebridge Capital, founded in 2008, is a South Korean private equity firm with approximately KRW 3.6 trillion (~US$ 2.5 billion) in cumulative assets under management, investing in market-leading companies in structurally growing sectors.
SKT will oversee the Group’s overall AIDC business, setting business strategies and directions and collaborating with global big tech companies. Meanwhile, the surviving company, SK Broadband, plans to strengthen the competitiveness of its fixed-line, media, and enterprise businesses through AX-driven innovation in products and services, while sustaining solid growth. It also plans to accelerate future growth by actively identifying new business models.