By Kwanwoo Jun
Uber Technologies Inc. plans to invest more than $150 million in SK Telecom Co.'s mobility business, which could be split off as early as next year.
The U.S. ride-hailing company's planned investment will mark a fresh push after an unsuccessful bid in 2015 to expand its business presence in South Korea, where local rivals dominate.
This time, Uber joins hands with SK Telecom, the second-largest taxi-hailing platform operator in the country after Kakao Corp. SK Telecom said in a statement Friday that it plans to spin off its taxi-hailing and other mobility businesses to create a company called T Map Mobility, which will launch a joint venture with Uber.
Uber will first invest $50 million in T Map Mobility, then inject more than $100 million in the joint venture for a 51% stake, the statement said.
SK Telecom, which will hold a 49% stake in the joint venture, plans to hold a meeting in November for shareholders to vote on the plan.
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(END) Dow Jones Newswires