SK Telecom announced on Wednesday that it will rearrange business divisions in time for the launch of SK Planet on Oct. 1. The company also said that it will carry out an executive reshuffle.

SK Planet will be a new subsidiary created by spinning off SK Telecom’s platform business.

Under the plans, SK Telecom will abolish the company-in-company or CIC system where each “company” is responsible for a different part of the mobile carrier’s operations. The company said that once the platform business is separated, the CIC structure will become redundant.

To replace the current system, SK Telecom will set up a division for overseeing all parts of its network operating business. The company added that the new division will include business-to-consumer, business-to-business, and fixed-line and mobile network to maximize the synergy effect between different areas.

The overseeing division will also be in charge of the IPE division and healthcare departments, which will be newly established. IPE, short for industry productivity enhancement, is a business model the company adopted in 2009 as part of its efforts to diversify and to facilitate the telecom industry’s convergence with other industries.

In addition, the company said that it will establish the “Corporate Center” to carry out functions related to improving the efficiency of the company.

Along with the changes for its business divisions, the company said that all its technological operations will be combined into a single research and development division.

By Choi He-suk (cheesuk@heraldcorp.com)