SK Telecom Spins Off Subsea Cable Business as SK Horizon

SK Telecom, PR Newswire
August 27, 2026

SK Telecom plans to separate part of its digital infrastructure portfolio into a new company called SK Horizon. The transaction will split wholly owned subsidiary SK Broadband, leaving its fixed-line, media and enterprise operations in the surviving business while moving the data-center platform and submarine cable activities into the new entity.

SK Horizon will oversee eight operating data centers as well as facilities under construction in Ulsan and Guro. SK Telecom said the company will also expand its submarine cable infrastructure in phases to support international AI services. The reorganization is intended to give the infrastructure business more focused management and a streamlined route to outside capital.

Funds managed by KKR and a consortium led by IMM Investment and Stonebridge Capital have agreed to invest a combined KRW 3.08 trillion in SK Horizon. After all investment phases are completed, KKR and the IMM consortium will hold substantial minority positions while SK Telecom remains the largest shareholder and retains management control. The new capital is intended to support expansion of the infrastructure platform.

Kim Seong-soo, chief executive of SK Broadband, is expected to lead SK Horizon after its board completes the appointment. SK Telecom is targeting the first quarter of next year for establishment of the company, subject to an extraordinary shareholder meeting, government approvals and other required procedures. The move links ownership of international subsea connectivity with SK Telecom's broader expansion of AI data-center capacity.

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