SK Networks to split off SpeedMate, trade division

South Korea's SK Networks Co. plans to split off its auto management division SpeedMate and its trading unit.

The board of directors approved the plan, the company said in a statement on Monday.

Following an extraordinary general meeting of shareholders in August, SpeedMate will be launched as a new entity in September, with the trading division to follow in December.

"We decided on the split-off to ensure the long-term growth of our subsidiaries in line with our future growth strategy," an SK Networks source said. "Each subsidiary will gain business momentum under an independent decision-making structure.'

The company plans to split off additional business divisions to establish an intermediate holding company structure.

Write to Hyung-Kyu Kim at khk@hankyung.com