SK Telecom headquarters in central Seoul (SK Telecom)
SK Telecom headquarters in central Seoul (SK Telecom)

SK Telecom has decided to sell off three subsidiaries and sub-subsidiaries to a midsized Korean firm, Samkoo, in a package deal to focus on its key businesses, including telecommunications and artificial intelligence.

According to industry sources on Friday, the telecom carrier will divest its stakes in SK Communications, F&U Credit Information and SK m&service.

SK Communications operates Nate, the No. 3 Web portal behind Naver and Daum, and NateOn messaging service, while SK m&service is a welfare platform provider.

The details of the stake sizes being sold, including whether the sales involve partial or full ownership, have not been disclosed.

“We have decided to divest three subsidiaries, however, we plan to maintain business collaborations with the companies even after the sale,” an SK Telecom official said.

Total service provider Samkoo Inc. reportedly pursued the acquisition to bolster its market presence and competitiveness.

The decision to sell SK Communications was set in motion as early as October when SK Group began selecting advisers for the transaction.

Once a prominent player with platforms like Cyworld, Nate and Nateon, SK Communications has struggled in the mobile era, posting an operating loss of more than 8.6 billion won ($5.8 million) last year.

A previous attempt to sell the company to entertainment firm iHQ in 2015 was unsuccessful.

Sources said the deal is expected to realign SK Telecom’s priorities while enabling Samkoo to leverage the acquired businesses to strengthen its portfolio in the competitive market.