SK Telecom (SKT) set 1 November as the date it will complete a spin-off of its semiconductor and e-commerce operations into a new investment company, after its board approved a move proposed in April to fuel growth.

The spin-off plan will involve SKT’s shares being divided 60:40 between its core telecoms business and the investment company, which is tentatively named SKT Investment.

This business will control 16 companies including chipmaker SK Hynix, e-commerce arm 11st, app market One Store, T Map Mobility and security unit ADT Caps. SKT holds a 20 per cent stake in SK Hynix.

The move will be up for shareholder approval on 12 October. SKT explained the two businesses will seek a listing on 29 November, following a month-long suspension in trading running until 26 November.

SKT plans to move ahead with a five-for-one stock split at the same time it completes the spin-off, which will double the number of shares to 72.06 million.

The company explained its telecoms business will focus on accelerating growth with a focus on digital infrastructure and AI initiatives. It also plans to invest in data centres, mobile edge computing and cloud businesses.