SK Telecom not selling stake in e-commerce unit 11Street to Amazon

SK Telecom, a major mobile carrier, denied a news report on Monday that it is planning to sell a stake in its e-commerce unit 11Street to ecommerce giant Amazon in a bid to bolster its online retail business.

Local media had earlier reported that Amazon will exercise its right to acquire a 30 percent stake in 11Street, and that the US retailer could acquire up to a 50 percent stake in the South Korean e-commerce company.

SK Telecom and Amazon strengthened ties in November last year to collaborate in e-commerce and made an agreement whereby the U.S. tech giant has the right to acquire a stake in 11Street, reports Yonhap news agency.

“We are collaborating to launch a service so that Amazon products can be directly purchased within 11Street,” SK Telecom said in a statement. “There is no ongoing matter regarding a stake transfer.”

The wireless carrier currently owns an 80 percent stake in 11Street and is planning an initial public offering for the online retailer next year.