SK Telecom (SKT) shareholders voted overwhelmingly to split the company into two parts, approving a proposal to spin off its semiconductor and e-commerce operations from its main telecoms business.

At an extraordinary general meeting today (12 October) the move to create a holding company named SK Square was approved by 99.95 per cent of shareholders.

In a translated statement, CEO Park Jung-ho (pictured) explained: “The main purpose of the spin-off is to maximise shareholder value, and after the spin-off, we will write a quick success story with a clear identity of communication and investment.”

The split will happen on 1 November, with the existing company to be re-listed as SKT and SK Square on 29 November after a period of stock trading suspension (26 October to 26 November).

As a semiconductor and ICT investment company, Park said it aims for SK Square to boost its net asset value nearly threefold to KRW75 trillion ($62.5 billion) by 2025.

SKT will focus on AI and digital infrastructure services, with plans to increase annual sales from KRW15 trillion in 2020 to KRW22 trillion by 2025.