UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

Form 6-K

 

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

FOR THE MONTH OF September 2025

COMMISSION FILE NUMBER: 333-04906

 

 

SK Telecom Co., Ltd.

(Translation of registrant’s name into English)

 

 

65, Eulji-ro, Jung-gu

Seoul 04539, Korea

(Address of principal executive office)

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F ☒     Form 40-F ☐

 

ANNUAL BUSINESS REPORT

(From January 1, 2025 to June 30, 2025)

THIS IS A SUMMARY OF THE SEMI-ANNUAL BUSINESS REPORT ORIGINALLY PREPARED IN KOREAN WHICH IS IN SUCH FORM AS REQUIRED BY THE KOREAN FINANCIAL SERVICES COMMISSION.

IN THE TRANSLATION PROCESS, SOME PARTS OF THE REPORT WERE REFORMATTED, REARRANGED OR SUMMARIZED FOR THE CONVENIENCE OF READERS.

ALL REFERENCES TO THE “COMPANY” SHALL MEAN SK TELECOM CO., LTD. AND, UNLESS THE CONTEXT OTHERWISE REQUIRES, ITS CONSOLIDATED SUBSIDIARIES. REFERENCES TO “SK TELECOM” SHALL MEAN SK TELECOM CO., LTD., BUT SHALL NOT INCLUDE ITS CONSOLIDATED SUBSIDIARIES.

UNLESS EXPRESSLY STATED OTHERWISE, ALL INFORMATION CONTAINED HEREIN IS PRESENTED ON A CONSOLIDATED BASIS IN ACCORDANCE WITH THE INTERNATIONAL FINANCIAL REPORTING STANDARDS ADOPTED FOR USE IN KOREA (“K-IFRS”) WHICH DIFFER IN CERTAIN RESPECTS FROM GENERALLY ACCEPTED ACCOUNTING PRINCIPLES IN CERTAIN OTHER COUNTRIES, INCLUDING THE UNITED STATES. THE COMPANY HAS MADE NO ATTEMPT TO IDENTIFY OR QUANTIFY THE IMPACT OF THESE DIFFERENCES.

I.	COMPANY OVERVIEW

1. Company Overview

The following table sets forth a summary of the Company’s consolidated subsidiaries:

 

		Number of Consolidated Subsidiaries
Classification		Beginning of the Reporting Period				Additions				Subtractions				End of the Reporting Period				Number of Material Subsidiaries*
Listed Companies			0				0				0				0				0
Unlisted Companies			21				0				2				19				12
Total			21				0				2				19				12

 

*	“Material Subsidiary” means a subsidiary with total assets of Won 75 billion or more as of the end of the previous fiscal year.

For a list of the Company’s subsidiaries as of June 30, 2025, see Note 1(2) of the notes to the Company’s interim consolidated financial statements attached hereto.

Changes in the Company’s consolidated subsidiaries during the six months ended June 30, 2025 are set forth below.

 

Change		Name		Remarks
Additions		—		—
Exclusions		NATE Communications Corporation (formerly SK Communications Co., Ltd.)		Lost control during the reporting period
		SK m&service Co., Ltd. (“SK M&Service”)		Lost control during the reporting period

 

A.	Corporate Legal Business Name: SK Telecom Co., Ltd.

 

B.	Date of Incorporation: March 29, 1984

 

C.	Location of Headquarters

 

(1)

Address: 65 Euljiro, Jung-gu, Seoul, Korea

 

(2)

Phone: +82-2-6100-2114

 

(3)

Website: http://www.sktelecom.com

 

D.	Major Businesses

The Company’s businesses consist of (1) the wireless business including cellular voice, wireless data and wireless Internet services, (2) the fixed-line business including fixed-line telephone, high-speed Internet, and data and network lease services, and (3) other businesses including commercial retail data broadcasting channel services, among others.

Set forth below is a summary description of each of the Company’s businesses.

 

Classification		Material entities		Description of business		Proportion of revenue
Wireless business		SK Telecom Co., Ltd.		Mobile telephone, wireless data, information and communications services, etc.			74	%
		PS&Marketing Co., Ltd. (“PS&Marketing”)
		Service Ace Co., Ltd (“Service Ace”)
		SK O&S Co., Ltd. (“SK O&S”)
Fixed-line business		SK Broadband Co., Ltd. (“SK Broadband”)		Telephone, high-speed Internet, data, communications network leasing services, etc.			24	%
		SK Telink Co., Ltd. (“SK Telink”)
		Home & Service Co., Ltd. (“Home&Service”)
Other businesses		SK stoa Co., Ltd. (“SK Stoa”)		Commercial retail data broadcasting channel services, database and online information services, etc.			2	%
		SK M&Service
Total							100	%

 

2

The total number of the Company’s consolidated subsidiaries as of June 30, 2025 was 19, including SK Broadband and PS&Marketing, among others.    

 

E.	Credit Ratings

 

(1)

Corporate bonds and other long-term securities

 

Credit rating date		Subject of rating		Credit rating		Credit rating entity (Credit rating range)		Rating classification
January 4, 2021		Corporate bond		AAA (Stable)		Korea Ratings		Current rating
January 4, 2021		Corporate bond		AAA (Stable)		Korea Investors Service, Inc.		Current rating
June 15, 2021		Corporate bond		AAA (Stable)		NICE Investors Service, Co., Ltd.		Regular rating
June 16, 2021		Corporate bond		AAA (Stable)		Korea Investors Service, Inc.		Regular rating
June 25, 2021		Corporate bond		AAA (Stable)		Korea Ratings		Regular rating
October 14, 2021		Corporate bond		AAA (Stable)		Korea Investors Service, Inc.		Current rating
October 15, 2021		Corporate bond		AAA (Stable)		NICE Investors Service, Co., Ltd.		Current rating
October 15, 2021		Corporate bond		AAA (Stable)		Korea Ratings		Current rating
March 30, 2022		Corporate bond		AAA (Stable)		Korea Ratings		Regular rating
March 30, 2022		Corporate bond		AAA (Stable)		Korea Ratings		Current rating
March 30, 2022		Corporate bond		AAA (Stable)		Korea Investors Service, Inc.		Current rating
March 30, 2022		Corporate bond		AAA (Stable)		NICE Investors Service, Co., Ltd.		Current rating
March 30, 2022		Corporate bond		AAA (Stable)		NICE Investors Service, Co., Ltd.		Regular rating
June 15, 2022		Corporate bond		AAA (Stable)		Korea Investors Service, Inc.		Regular rating
June 15, 2022		Corporate bond		AAA (Stable)		Korea Investors Service, Inc.		Regular rating
July 28, 2022		Corporate bond		AAA (Stable)		Korea Ratings		Current rating
July 28, 2022		Corporate bond		AAA (Stable)		Korea Investors Service, Inc.		Current rating
July 29, 2022		Corporate bond		AAA (Stable)		NICE Investors Service, Co., Ltd.		Current rating
December 1, 2022		Corporate bond		AAA (Stable)		Korea Investors Service, Inc.		Current rating
December 2, 2022		Corporate bond		AAA (Stable)		Korea Ratings		Current rating
December 2, 2022		Corporate bond		AAA (Stable)		NICE Investors Service, Co., Ltd.		Current rating
February 7, 2023		Corporate bond		AAA (Stable)		Korea Ratings		Current rating
February 7, 2023		Corporate bond		AAA (Stable)		Korea Investors Service, Inc.		Current rating
February 7, 2023		Corporate bond		AAA (Stable)		NICE Investors Service, Co., Ltd.		Current rating
March 30, 2023		Corporate bond		AAA (Stable)		Korea Investors Service, Inc.		Current rating
March 30, 2023		Corporate bond		AAA (Stable)		Korea Investors Service, Inc.		Regular rating
March 31, 2023		Corporate bond		AAA (Stable)		Korea Ratings		Regular rating
March 31, 2023		Corporate bond		AAA (Stable)		NICE Investors Service, Co., Ltd.		Regular rating
March 31, 2023		Corporate bond		AAA (Stable)		Korea Ratings		Current rating
March 31, 2023		Corporate bond		AAA (Stable)		NICE Investors Service, Co., Ltd.		Current rating
May 22, 2023		Hybrid securities		AA+ (Stable)		Korea Ratings		Current rating
May 22, 2023		Hybrid securities		AA+ (Stable)		Korea Investors Service, Inc.		Current rating
May 22, 2023		Hybrid securities		AA+ (Stable)		NICE Investors Service, Co., Ltd.		Current rating
May 22, 2023		Hybrid securities		AA+ (Stable)		Korea Ratings		Current rating
May 22, 2023		Hybrid securities		AA+ (Stable)		Korea Investors Service, Inc.		Current rating
May 22, 2023		Hybrid securities		AA+ (Stable)		NICE Investors Service, Co., Ltd.		Current rating
October 4, 2023		Corporate bond		AAA (Stable)		Korea Investors Service, Inc.		Current rating
October 5, 2023		Corporate bond		AAA (Stable)		Korea Ratings		Current rating
October 5, 2023		Corporate bond		AAA (Stable)		NICE Investors Service, Co., Ltd.		Current rating
February 7, 2024		Corporate bond		AAA (Stable)		Korea Ratings		Current rating
February 7, 2024		Corporate bond		AAA (Stable)		Korea Investors Service, Inc.		Current rating
February 7, 2024		Corporate bond		AAA (Stable)		NICE Investors Service, Co., Ltd.		Current rating
June 7, 2024		Hybrid securities		AA+ (Stable)		Korea Ratings		Current rating
June 7, 2024		Corporate bond		AAA (Stable)		Korea Ratings		Current rating
June 11, 2024		Hybrid securities		AA+ (Stable)		Korea Investors Service, Inc.		Current rating
June 11, 2024		Corporate bond		AAA (Stable)		Korea Investors Service, Inc.		Current rating
June 17, 2024		Hybrid securities		AA+ (Stable)		NICE Investors Service, Co., Ltd.		Current rating
June 17, 2024		Corporate bond		AAA (Stable)		NICE Investors Service, Co., Ltd.		Current rating
November 26, 2024		Corporate bond		AAA (Stable)		Korea Investors Service, Inc.		Current rating
November 27, 2024		Corporate bond		AAA (Stable)		NICE Investors Service, Co., Ltd.		Current rating
November 27, 2024		Corporate bond		AAA (Stable)		Korea Ratings		Current rating
February 10, 2025		Corporate bond		AAA (Stable)		Korea Ratings		Current rating

 

3

Credit rating date		Subject of rating		Credit rating		Credit rating entity (Credit rating range)		Rating classification
February 10, 2025		Corporate bond		AAA (Stable)		Korea Investors Service, Inc.		Current rating
February 10, 2025		Corporate bond		AAA (Stable)		NICE Investors Service, Co., Ltd.		Current rating

 

*	Rating definition: “AAA” – The certainty of principal and interest payment is at the highest level with extremely low investment risk and is stable such that it will not be influenced by reasonably foreseeable changes in external factors.

**	Rating definition: “AA” – The certainty of principal and interest payment is very high with very low investment risk, but has slightly inferior factors compared to securities that are rated “AAA.”

***	From ratings “AA” to “B,” “+” and “-” signs are attached depending on the relative superiority within the grade.

 

(2)

Commercial paper (“CP”) and short-term bonds

 

Credit rating date		Subject of rating		Credit rating		Credit rating entity (Credit rating range)		Rating classification
June 15, 2021		CP		A1		NICE Investors Service Co., Ltd.		Current rating
June 15, 2021		Short-term bond		A1		NICE Investors Service Co., Ltd.		Current rating
June 16, 2021		CP		A1		Korea Investors Service, Inc.		Current rating
June 16, 2021		Short-term bond		A1		Korea Investors Service, Inc.		Current rating
June 25, 2021		CP		A1		Korea Ratings		Current rating
June 25, 2021		Short-term bond		A1		Korea Ratings		Current rating
October 14, 2021		CP		A1		Korea Investors Service, Inc.		Regular rating
October 14, 2021		Short-term bond		A1		Korea Investors Service, Inc.		Regular rating
October 15, 2021		Short-term bond		A1		NICE Investors Service Co., Ltd.		Regular rating
October 15, 2021		CP		A1		NICE Investors Service Co., Ltd.		Regular rating
October 15, 2021		CP		A1		Korea Ratings		Regular rating
October 15, 2021		Short-term bond		A1		Korea Ratings		Regular rating
November 3, 2021		CP		A1		Korea Investors Service, Inc.		Rating update
November 3, 2021		Short-term bond		A1		Korea Investors Service, Inc.		Rating update
June 15, 2022		CP		A1		Korea Investors Service, Inc.		Current rating
June 15, 2022		Short-term bond		A1		Korea Investors Service, Inc.		Current rating
June 20, 2022		CP		A1		Korea Ratings		Current rating
June 20, 2022		Short-term bond		A1		Korea Ratings		Current rating
June 21, 2022		CP		A1		NICE Investors Service Co., Ltd.		Current rating
June 21, 2022		Short-term bond		A1		NICE Investors Service Co., Ltd.		Current rating
December 2, 2022		CP		A1		Korea Ratings		Regular rating
December 2, 2022		Short-term bond		A1		Korea Ratings		Regular rating
December 2, 2022		CP		A1		Korea Investors Service, Inc.		Regular rating
December 2, 2022		Short-term bond		A1		Korea Investors Service, Inc.		Regular rating
December 2, 2022		CP		A1		NICE Investors Service Co., Ltd.		Regular rating
December 2, 2022		Short-term bond		A1		NICE Investors Service Co., Ltd.		Regular rating
January 2, 2023		Short-term bond		A1		Korea Investors Service, Inc.		Rating update
January 3, 2023		Short-term bond		A1		NICE Investors Service Co., Ltd.		Rating update
May 22, 2023		CP		A1		NICE Investors Service Co., Ltd.		Current rating
May 22, 2023		Short-term bond		A1		NICE Investors Service Co., Ltd.		Current rating
May 22, 2023		Short-term bond		A1		Korea Ratings		Current rating
May 22, 2023		CP		A1		Korea Ratings		Current rating
May 22, 2023		Short-term bond		A1		Korea Investors Service, Inc.		Current rating
May 22, 2023		CP		A1		Korea Investors Service, Inc.		Current rating
September 27, 2023		CP		A1		NICE Investors Service Co., Ltd.		Regular rating
September 27, 2023		Short-term bond		A1		NICE Investors Service Co., Ltd.		Regular rating
October 4, 2023		Short-term bond		A1		Korea Investors Service, Inc.		Regular rating
October 4, 2023		CP		A1		Korea Investors Service, Inc.		Regular rating
October 13, 2023		Short-term bond		A1		Korea Ratings		Regular rating
October 13, 2023		CP		A1		Korea Ratings		Regular rating
June 7, 2024		Short-term bond		A1		Korea Ratings		Current rating
June 7, 2024		CP		A1		Korea Ratings		Current rating
June 11, 2024		Short-term bond		A1		Korea Investors Service, Inc.		Current rating
June 11, 2024		CP		A1		Korea Investors Service, Inc.		Current rating
June 17, 2024		Short-term bond		A1		NICE Investors Service Co., Ltd.		Current rating

 

4

Credit rating date		Subject of rating		Credit rating		Credit rating entity (Credit rating range)		Rating classification
June 17, 2024		CP		A1		NICE Investors Service Co., Ltd.		Current rating
November 26, 2024		Short-term bond		A1		Korea Investors Service, Inc.		Current rating
November 26, 2024		CP		A1		Korea Investors Service, Inc.		Current rating
November 27, 2024		Short-term bond		A1		Korea Ratings		Current rating
November 27, 2024		CP		A1		Korea Ratings		Current rating
November 27, 2024		Short-term bond		A1		NICE Investors Service Co., Ltd.		Current rating
November 27, 2024		CP		A1		NICE Investors Service Co., Ltd.		Current rating

 

*	Rating definition: “A1” – Timely repayment capability is at the highest level with extremely low investment risk and is stable such that it will not be influenced by reasonably foreseeable changes in external factors.

 

(3)

International credit ratings

 

Date of credit rating		Subject of rating		Credit rating of securities		Credit rating agency		Rating type
March 4, 2021		Bonds denominated in foreign currency		A- (Stable)		Fitch Ratings		Regular rating
March 30, 2021		Bonds denominated in foreign currency		A- (Stable)		S&P Global Ratings		Regular rating
June 16, 2021		Bonds denominated in foreign currency		A3 (Stable)		Moody’s Investors Service		Regular rating
December 8, 2021		Bonds denominated in foreign currency		A- (Stable)		Fitch Ratings		Regular rating
February 25, 2022		Bonds denominated in foreign currency		A- (Stable)		S&P Global Ratings		Regular rating
December 2, 2022		Bonds denominated in foreign currency		A- (Positive)		Fitch Ratings		Regular rating
February 23, 2023		Bonds denominated in foreign currency		A- (Stable)		S&P Global Ratings		Regular rating
August 28, 2023		Bonds denominated in foreign currency		A3 (Stable)		Moody’s Investors Service		Regular rating
November 28, 2023		Bonds denominated in foreign currency		A- (Stable)		Fitch Ratings		Regular rating
February 25, 2024		Bonds denominated in foreign currency		A- (Stable)		S&P Global Ratings		Regular rating
May 2, 2024		Bonds denominated in foreign currency		A- (Stable)		Fitch Ratings		Regular rating
May 24, 2024		Bonds denominated in foreign currency		A3 (Stable)		Moody’s Investors Service		Regular rating
January 7, 2025		Bonds denominated in foreign currency		A- (Stable)		Fitch Ratings		Regular rating

 

(4)

Listing (registration or designation) of Company’s shares and special listing status

 

Listing (registration or designation) of stock		Date of listing (registration or designation)		Special listing
KOSPI Market of Korea Exchange		November 7, 1989		Not applicable

2. Company History

March 1984: Establishment of Korea Mobile Telecommunications Co., Ltd.

November 1989: Listing on the KOSPI Market of the Korea Exchange

March 1997: Change of name to SK Telecom Co., Ltd.

March 2008: Acquisition of Hanaro Telecom (the predecessor entity of SK Broadband)

May 2018: Acquisition of ADT CAPS Co., Ltd. (“Former ADT CAPS”) through the acquisition of shares of Siren Holdings Korea Co., Ltd.

December 2018: Comprehensive exchange of shares of SK Infosec Co., Ltd. (“SK Infosec”)

April 2020: Merger of SK Broadband and Tbroad (“Tbroad Merger”)

December 2020: Spin-off of T map Mobility Co., Ltd. (“T Map Mobility”)

March 2021: Merger of SK Infosec and Former ADT CAPS

November 2021: Spin-off of SK Square Co., Ltd. (“SK Square”) from SK Telecom (the “Spin-off”)

 

5

A.	Location of Headquarters

 

•

22 Dohwa-dong, Mapo-gu, Seoul (July 11, 1988)

 

•

16-49 Hangang-ro 3-ga, Yongsan-gu, Seoul (November 19, 1991)

 

•

267 Namdaemun-ro 5-ga, Jung-gu, Seoul (June 14, 1995)

 

•

99 Seorin-dong, Jongno-gu, Seoul (December 20, 1999)

 

•

65 Euljiro, Jung-gu, Seoul (December 13, 2004)

 

B.	Significant Changes in Management

 

Date of change		Shareholder meeting classification		Appointment				Term Termination or Dismissal
				Newly appointed		Re-elected
March 25, 2021		General Meeting of Shareholders		—		Young Sang Ryu, Youngmin Yoon		—
August 25, 2021		—		—		—		Dae Sik Cho
October 12, 2021		Extraordinary Meeting of Shareholders		Kyu-Nam Choi		—		—
November 1, 2021		—		Young Sang Ryu		—		Jung Ho Park
March 25, 2022		General Meeting of Shareholders		Jong Ryeol Kang		Seok-Dong Kim		—
March 28, 2023		General Meeting of Shareholders		Haeyun Oh		Yong-Hak Kim, Junmo Kim		Jung Ho Ahn
March 26, 2024		General Meeting of Shareholders		Yang Seob Kim, Sung Hyung Lee, Mi Kyung Noh		Young Sang Ryu		Kyu-Nam Choi, Youngmin Yoon
March 26, 2025		General Meeting of Shareholders		Dong Soo Kang, Chang Bo Kim		—		Jong Ryeol Kang, Sung Hyung Lee, Seok-Dong Kim

 

*	At the 41st General Meeting of Shareholders held on March 26, 2025, Dong Soo Kang and Chang Bo Kim were newly elected as a non-executive director and an independent director/audit committee member, respectively.

 

C.	Change in Company Name

On March 4, 2021, SK Infosec merged Former ADT CAPS with and into itself and changed its name to ADT CAPS Co., Ltd. (“ADT CAPS”) after the date of the merger. As of October 26, 2021, ADT CAPS changed its name to SK shieldus Co., Ltd., which has subsequently been eliminated from the Company’s consolidation scope following the Spin-off.

 

D.	Mergers, Acquisitions and Restructuring

[SK Telecom]

(1) Spin-off of SK Square

The Company engaged in the Spin-off, comprising a horizontal spin-off of its business of managing the equity interests in certain investees engaged in, among other things, semiconductor and new information and communications technology (“ICT”) businesses and making new investments into a newly established company, SK Square. The Spin-off was conducted in order to (i) strengthen the competitiveness of, and concentrate capabilities relating to, the spun-off investments, (ii) increase the transparency of corporate governance and management stability and (iii) efficiently allocate management resources through changes in the corporate governance structure of the Company and SK Square, thereby facilitating appropriate market valuation and ultimately enhancing the corporate and shareholder values of the Company and SK Square. The Spin-off registration date was November 2, 2021.

 

*	See the report on “Decision on Spin-Off” filed by the Company on June 10, 2021, for more information.

 

6

(2) Transfer of artificial intelligence (“AI”) semiconductor business

On December 21, 2021, the Company’s board of directors (the “Board of Directors”) resolved to approve an agreement for the transfer of the Company’s AI semiconductor business to facilitate the commercialization of the Company’s AI semiconductor technology and to improve management efficiency. The transfer was completed on January 4, 2022.

 

*	See the report on “Decision on Business Transfer” filed by the Company on December 22, 2021, for more information.

[SK Broadband]

(1) Acquisition of business

On December 4, 2020, SK Broadband entered into a certain business transfer agreement to acquire the business-to-business (“B2B”) business of SK Telink Co., Ltd. with the purpose of strengthening the market competitiveness of the B2B business through a reorganization of such business within the wider ICT business of the SK Group. The transfer was completed on March 31, 2021.

(2) Establishment of a subsidiary and acquisition of shares

On January 5, 2021, SK Broadband established Media S Co., Ltd., a subsidiary engaged in the production and supply of broadcasting programs, through a capital contribution of Won 23.0 billion (representing a 100% equity interest), and the subsidiary was added as a member of the SK Group as of March 2, 2021. On June 23, 2022, SK Broadband acquired 5,000,000 additional shares of Media S Co., Ltd. for Won 25.0 billion through a capital increase by allocation to shareholders.

(3) Merger

On March 30, 2022, the board of directors of SK Broadband approved the merger contract with Broadband Nowon Broadcasting Co., Ltd., as originally proposed. On October 5, 2022, the merger was completed.

(4) Transfer of business

On December 27, 2023, the board of directors and the shareholders of Home&Service, a subsidiary of SK Broadband, resolved to transfer Home&Service’s electric vehicle standard-charge business. The business was transferred to GS ChargEV on April 15, 2024.

(5) Capital reduction of subsidiary

On July 5, 2024, the board of directors and the shareholders of Home&Service approved the capital reduction with consideration. The capital reduction will be achieved by acquiring 2,770,000 common shares of Home&Service held by SK Broadband (at Won 7,237 per share) and immediately cancelling such shares. In consideration of the capital reduction, Won 20,046 million will be paid to SK Broadband. Such transaction will not result in a change in SK Broadband’s ownership interest in Home&Service (100%) while the number of shares owned will decrease from 9,200,000 shares to 6,430,000 shares.

(6) Acquisition of data center

On May 12, 2025, the board of directors of SK Broadband resolved to acquire SK Inc.’s Pangyo Data Center in order to expand the data center business and generate synergy. The acquisition was completed on July 1, 2025.

[SK Telink]

(1) Transfer of B2B business

On December 2, 2020, SK Telink held an extraordinary general meeting of shareholders, which resolved to transfer its B2B business and related assets to its affiliated company, SK Broadband. The transfer was completed on March 31, 2021, and the value of the transfer was Won 20.3 billion.

 

7

[PS&Marketing]

(1) Acquisition of shares of SK M&Service

PS&Marketing acquired 3,099,112 shares of SK M&Service (representing a 100% equity interest) to strengthen its competitiveness in distribution and promote synergies within the ICT businesses of SK Telecom and its affiliates. The transaction was completed on February 9, 2022.

(2) Disposal of equity interest in SK M&Service

On December 18, 2024, the board of directors of PS&Marketing approved the disposal of certain of its equity interest in SK M&Service, a subsidiary of PS&Marketing, as originally proposed. On February 25, 2025, PS&Marketing transferred 2,169,379 shares of SK M&Service (representing a 70% equity interest) to Samgu Inc. for Won 58,515 million. Following the transfer, PS&Marketing holds a 30% equity interest in SK M&Service, and SK M&Service has become excluded from the scope of the Company’s consolidated subsidiaries.

3. Total Number of Shares

 

A.	Total Number of Shares

 

(As of June 30, 2025)						(Unit: in shares and percentages)
Classification		Share type												Remarks
		Common shares				Preferred shares				Total
I. Total number of authorized shares			670,000,000				—				670,000,000				—
II. Total number of shares issued to date			304,927,159				—				304,927,159				—
III. Total number of shares cancelled to date			90,137,106				—				90,137,106				—
a. reduction of capital			—				—				—				—
b. cancelled with profit			90,137,106				—				90,137,106				—
c. redemption of redeemable shares			—				—				—				—
d. others			—				—				—				—
IV. Total number of issued shares (II-III)			214,790,053				—				214,790,053				—
V. Number of treasury shares			1,807,778				—				1,807,778				—
VI. Number of outstanding shares (IV-V)			212,982,275				—				212,982,275				—
VII. Percentage of treasury shares held			0.8	%			—				0.8	%			—

 

*

Following the stock split of October 28, 2021 (the “Stock Split”) and the split-off of November 1, 2021, the total number of issued shares changed from 72,060,143 shares (par value of Won 500 per share) to 218,833,144 shares (par value of Won 100 per share). Additionally, the total number of issued shares changed to 214,790,053 shares following the cancellation of 4,043,091 treasury shares on February 5, 2024.

**	Number of treasury shares includes 54,032 treasury shares acquired relating to fractional shares from the Spin-off.

 

B.	Treasury Shares

 

(As of June 30, 2025)												(Unit: in shares)
Acquisition methods						Type of shares		At the beginning of period				Changes												At the end of period
												Acquired (+)				Disposed (-)				Cancelled (-)
Acquisition pursuant to the Financial Investment Services and Capital Markets Act of Korea		Direct acquisition		Direct acquisition from market		Common shares			—				—				—				—				—
						Preferred shares			—				—				—				—				—
				Direct over-the- counter acquisition		Common shares			—				—				—				—				—
						Preferred shares			—				—				—				—				—
				Tender offer		Common shares			—				—				—				—				—
						Preferred shares			—				—				—				—				—
				Sub-total (a)		Common shares			—				—				—				—				—
						Preferred shares			—				—				—				—				—
		Acquisition through trust and other agreements		Held by trustee		Common shares			—				—				—				—				—
						Preferred shares			—				—				—				—				—
				Held in actual stock		Common shares			1,903,711				—				95,933				—				1,807,778
						Preferred shares			—				—				—				—				—
				Sub-total (b)		Common shares			1,903,711				—				95,933				—				1,807,778
						Preferred shares			—				—				—				—				—
Other acquisition (c)						Common shares			—				—				—				—				—
						Preferred shares			—				—				—				—				—
Total (a+b+c)						Common shares			1,903,711				—				95,933				—				1,807,778
						Preferred shares			—				—				—				—				—

 

*	On April 28, 2025, the Company disposed 4,860 treasury shares for bonus payment purposes.

**	On May 2, 2025, the Company disposed 91,073 treasury shares due to the exercise of certain outstanding stock options.

 

8

4. Status of Direct Acquisitions and Disposal of Treasury Shares

 

(As of June 30, 2025)										(Unit: in shares and percentages)
Classification		Expected Acquisition (Disposal) Period				Expected Number of Shares (A)				Executed Number of Shares (B)				Execution Ratio (B/A)				Reporting Date
		Start Date		End Date
Direct Disposal		Feb. 3, 2021		Feb. 3, 2021			604,950				604,950				100	%		Feb. 8, 2021
Direct Disposal		Jun. 21, 2021		Jun. 21, 2021			2,500				2,500				100			Jun. 22, 2021
Direct Disposal		Oct. 25, 2021		Dec. 16, 2021			2,526,553				2,526,553				100			Dec. 20, 2021
Direct Disposal		Jan. 24, 2022		Jan. 24, 2022			413,080				413,080				100			Jan. 27, 2022
Direct Disposal		Feb. 25, 2022		Feb. 25, 2022			7,598				7,598				100			Feb. 28, 2022
Direct Disposal		May 2, 2022		May 2, 2022			5,984				5,984				100			May 17, 2022
Direct Disposal		May 13, 2022		May 13, 2022			23,239				23,239				100			May 17, 2022
Direct Disposal		Feb. 9, 2023		Feb. 9, 2023			324,580				324,580				100			Feb. 13, 2023
Direct Disposal		Feb. 27, 2023		Feb. 27, 2023			109,508				109,508				100			Mar. 2, 2023
Direct Disposal		Apr. 21, 2023		Apr. 21, 2023			6,999				6,999				100			Apr. 24, 2023
Direct Disposal		Jan. 29, 2024		Jan. 29, 2024			498,135				498,135				100			Feb. 2, 2024
Direct Disposal		Apr. 29, 2024		Apr. 29, 2024			5,477				5,477				100			Apr. 30, 2024
Direct Disposal		Apr. 28, 2025		Apr. 28, 2025			4,860				4,860				100			Apr. 30, 2025
Direct Disposal		May 2, 2025		May 2, 2025			91,073				91,073				100			—

 

*	The expected number of shares and executed number of shares reflect the effect of the Stock Split, where applicable.

*	As the disposal on May 2, 2025 involved the delivery of treasury shares in connection with the exercise of certain outstanding stock options, the submission of the disposal results was omitted in accordance with Article 5-9(4) of the Regulation on Securities Issuance and Disclosure.

5. Status of Trust Agreement on Repurchase of Treasury Shares

 

(As of June 30, 2025)

(Unit: in Won, percentages and number of instances)

Classification

Agreement Period

Maximum Value of Treasury Shares to be Acquired under Agreement (A)

Actual Value of Treasury Shares Acquired under Agreement (B)

Execution Ratio (B/A)

Change of Sales Direction

Reporting Date

Start Date

End Date

Number of Instances

Date

Trust Agreement Execution

Aug. 28, 2020

Apr. 30, 2021

W

500,000,000,000

W

499,646,025,000

99.93

%

—

—

Apr. 30, 2021

Trust Agreement Execution

Jul. 27, 2023

Jan. 26, 2024

W

300,000,000,000

W

301,274,969,250

100.42

%

—

—

Jan. 26, 2024

 

*	The Company completed the repurchase of treasury shares pursuant to the Trust Agreement on July 27, 2023, and reported the results of the termination of the Trust Agreement on January 26, 2024.

6. Matters Concerning Articles of Incorporation

 

Date of Revision		General Meeting of Shareholders		Key Revisions		Reason for Revisions
March 25, 2021		37th General Meeting of Shareholders		Corporate governance charter, term of office of independent directors, dividends, etc.		To provide basis for adopting a corporate governance charter and quarterly dividends in the Articles of Incorporation and to reflect applicable amendments to the Korean Commercial Code
October 12, 2021		1st Extraordinary General Meeting of Shareholders		Total number of authorized shares, par value per share		Stock Split from par value of Won 500 per share to par value of Won 100 per share
March 25, 2022		38th General Meeting of Shareholders		The Company’s areas of business		To reflect the Company’s pursuit of new businesses including data and medical equipment businesses
March 26, 2024		40th General Meeting of Shareholders		Board meeting notice period, year-end dividend record date		To strengthen the Board’s deliberation function by providing sufficient time for advance review and to enhance shareholders’ ability to estimate future dividends
March 26, 2025		41st General Meeting of Shareholders		Quarterly dividend record date		To enhance shareholders’ ability to estimate future dividends

 

9

II.

BUSINESS

1. Business Overview

Each company in the consolidated entity is a separate legal entity providing independent services and products. The Company’s business is primarily separated into (1) the wireless business consisting of cellular voice, wireless data and wireless Internet services, (2) the fixed-line business consisting of fixed-line telephone, high-speed Internet, data and network lease services, among others and (3) other businesses consisting of commercial retail data broadcasting channel business, among others.

Set forth below is a summary description of the business of each of the Company’s material consolidated subsidiaries.

 

Classification		Company name		Description of business
Wireless		SK Telecom Co., Ltd.		Wireless voice and data telecommunications services via digital wireless networks
		PS&Marketing Co., Ltd.		Sale of fixed-line and wireless telecommunications products through wholesale, retail and online distribution channels
		SK O&S Co., Ltd.		Maintenance of base stations
Fixed-line		SK Broadband Co., Ltd.		High-speed Internet, TV, telephone, commercial data and other fixed-line services and management of the transmission system for online digital contents   Various media-related services, such as channel management services including video-on-demand services
		Home & Service Co., Ltd.		System maintenance of high-speed Internet, Internet protocol TV (“IPTV”) and fixed-line services
		SK Telink Co., Ltd.		International wireless direct-dial “00700” services and mobile virtual network operator (“MVNO”) business
Other business		SK stoa Co., Ltd.		Operation of commercial retail data broadcasting channel services
		Atlas Investment		Investments
		SK Telecom Innovation Fund, L.P.		Investments
		SAPEON Inc.		Manufacture of non-memory and other electronic integrated circuits
		Astra AI Infra LLC		Investments
		SK Telecom Americas, Inc.		Information collection and consulting services
		Global AI Platform Corporation		Software development and supply business

[Wireless Business]

 

A.

Overview

Wireless telecommunications companies provide services based on competitive strengths in handheld devices, affordable pricing, network coverage and an extensive contents library. The Company continues to maintain its reputation as the unparalleled premium network operator in the 5G market on the basis of its technological leadership and network management technology. With the world’s first commercialization of 5G technology in 2019, the Company continues to maintain its position as the top network operator in the 5G era and strives to provide differentiated services to its customers.

In order to strengthen its sales channels, the Company has been offering a variety of fixed-line and wireless telecommunications convergence products through its subsidiary, PS&Marketing. PS&Marketing provides differentiated service to customers through the establishment of new sales channels and product development. Additionally, SK O&S, the Company’s subsidiary responsible for the operation of the Company’s networks, including base stations and related transmission and power facilities, provides customers with quality network services and provides the Company with technological know-how in network operations.

 

10

The Company has been maintaining solid profitability based on the stable sales generated from its 5G subscribers, together with efficient investments in, and operation of, its wireless networks and stabilization of market competition. The number of the Company’s 5G subscribers, which has reached its maturation stage, recorded 17.02 million subscribers as of June 30, 2025, and accounted for 77% of the Company’s total number of subscribers. The Company seeks to enhance profitability through stable market operations while striving to further expand customer choices and benefits in order to minimize the slowdown in the growths of wireless services revenue and Average Revenue Per User (“ARPU”). The Company seeks to achieve solid growth in profit from its wireless telecommunications business even in the mature 5G market.

 

B.	Industry Characteristics

The telecommunications services market can be categorized into telecommunications services (such as fixed-line, wireless and leased line services, as well as sales intermediary services relating thereto and value-added services) and broadcasting and telecommunications convergence services (including IPTV and integrated fixed-line and wireless telecommunications services). Pursuant to the Telecommunications Business Act, the telecommunications services market can be further classified into basic telecommunications (fixed-line and wireless telecommunications), special category telecommunications (resale of telecommunications equipment, facilities and services) and value-added telecommunications (Internet connection and management, media contents and others).

The size of the domestic telecommunications services market is determined based on various factors specific to Korea, including the size of the population that uses telecommunications services and telecommunications expenditures per capita. While it is possible for Korean telecommunications service providers to provide services abroad through acquisitions or otherwise, foreign telecommunications services markets have their own characteristics depending, among others, on the regulatory environment and demand for telecommunications services.

 

C.	Growth Potential

The Korean mobile communications market is considered to have reached its maturation stage with more than a 100% penetration rate. However, the Korean mobile communications market continues to improve in the quality of services with the help of advances in network-related technology and the development of highly advanced smartphones which enable the provision of new ICT services for advanced multimedia contents, mobile commerce, mobility and other related services. In addition, the ultra-low latency and high capacity characteristics of 5G networks as well as the advancement of AI are expected to accelerate the introduction of new services and the growth of Internet-of-Things (“IoT”)-based B2B businesses.

 

(Unit: in 1,000 persons)
Classification				As of June 30, 2025				As of December 31,
								2024				2023
Number of subscribers		SK Telecom			31,006				31,786				31,276
		Others (KT, LG U+)			39,804				38,360				35,643
		MVNO			19,039				17,825				15,851
		Total			89,849				87,971				82,770

 

*	Source: Wireless telecommunications service data from the Ministry of Science and ICT (“MSIT”) as of June 30, 2025.

 

D.	Domestic and Overseas Market Conditions

The Korean mobile communications market includes the entire population of Korea with mobile communications service needs, and almost every Korean is considered a potential user. Sales revenue related to data services has been growing due to the increasing popularity of smartphones and high-speed wireless networks. There is also a growing importance of the B2B segment, which creates added value by selling and developing various solutions. The telecommunications industry is a regulated industry requiring license and approval from the MSIT.

In the wireless business, industry players compete on the basis of the following three main competitive elements:

(i) brand competitiveness, which refers to the overall sense of recognition and loyalty experienced by customers with respect to services and values provided by a company, including the images created by a company’s comprehensive activities and communications on top of the actual services rendered;

 

11

(ii) product and service competitiveness, which refers to the fundamental criteria for wireless telecommunications services, including voice quality, service coverage, broad ranges of rate plans, diversified mobile Internet services, price and quality of devices, and customer service quality, as well as the ability to develop new services that meet customer needs in a market environment defined by convergence; and

(iii) sales competitiveness, which refers to novel and diversified marketing methods and the strength of the distribution network.

Set forth below is the historical market share of the Company (excluding MVNO subscribers).

 

						(Unit: in percentages)
Classification		As of June 30, 2025				As of December 31,
						2024				2023
Mobile communication services			43.8				45.3				46.7

 

*	Source: Wireless telecommunications service data from the MSIT as of June 30, 2025.

[Fixed-line Business]

 

A.

Overview

For the six months ended June 30, 2025, SK Broadband recorded Won 2.23 trillion in revenue on a consolidated basis, which represented a 2.3% increase from Won 2.18 trillion for the six months ended June 30, 2024. Such increase was primarily attributable to the growth of SK Broadband’s high-speed Internet business resulting from an increase in the number of subscribers and the growth of its B2B business primarily focused on new data centers.

SK Broadband’s business is divided into the media business segment, which provides IPTV and cable TV services, and the fixed-line business segment, which provides high-speed Internet, telecommunications, leased lines and data center services.

For the six months ended June 30, 2025, the media business segment recorded Won 0.95 trillion in revenue, which represented a 0.03% increase compared to the six months ended June 30, 2024. For the six months ended June 30, 2025, the fixed-line business segment recorded Won 1.28 trillion in revenue, which represented a 4.1% increase compared to the six months ended June 30, 2024.

 

B.	Industry Characteristics

The domestic telecommunications service industry displays the typical characteristics of a domestic industry given that its coverage area is limited to Korea. As a result, the size of the industry is greatly affected by the domestic user population and the level of telecommunications service expenditures in light of the domestic income level. Domestic telecommunications companies may expand overseas through mergers and acquisitions or direct expansion, but the overseas telecommunications service industries are subject to inherently different industry characteristics from the domestic one, depending on the regulatory and demand characteristics of each country.

The broadcasting business involves the planning, programming or production of broadcasting programs and the process of transmitting them to viewers through telecommunications facilities. The broadcasting market can primarily be categorized into terrestrial broadcasting, fixed-line TV broadcasting, satellite broadcasting and programming-providing businesses, in each case pursuant to the Broadcasting Act, as well as Internet multimedia broadcasting business pursuant to the Internet Multimedia Broadcast Services Act.

The Company engages in the fixed-line TV broadcasting business, which is defined as the business of managing and operating fixed-line TV broadcasting stations (including their facilities and employees for the purpose of providing multi-channel broadcasting) and providing broadcasts through transmission and line facilities. The Internet multimedia broadcasting refers to the broadcasting of programs through a combination of various contents including data, video, voice, sound and/or e-commerce, including real-time broadcasting, while guaranteeing a consistent service quality through a bidirectional Internet protocol using a broadband integrated information network.

As a result of the government’s direct and indirect control over the fixed-line telecommunications industry, ranging from service licensing to business activities, the industry’s growth potential and degree of competition are greatly affected by the government’s regulatory policies. The fixed-line telecommunications industry is also a technology-intensive industry that evolves rapidly and continuously through the development of communications technology and equipment, which requires proactive responses in meeting the various needs of subscribers by developing new services and penetrating the market. Fixed-line telecommunications services have become essential commodities and act as the foundation for integration and convergence with various other services. The essential nature of such services provides stable demand, resulting in low sensitivity to economic conditions.

 

12

In addition, the Korean fixed-line services industry is marked by a high level of market concentration, as the government is highly selective in granting telecommunications business licenses. While the competitive landscape of the fixed-line and wireless services markets is dominated by its three leading operators, the Company (including SK Broadband), KT and LG U+, the intensity of competition is growing as digitalization of communication technologies and devices leads to the convergence of fixed-line and wireless services, as well as broadcasting and telecommunications, and technology for faster data communications services is developed.

In the high-speed Internet services market, the demand for Giga Internet services has been continuing to increase due to the popularization of mobile and home IoT devices and the expansion of large media services including video streaming services.

In the pay TV market, competition for content has been intensifying, at the center of which are large over-the-top operators with exclusive content. Reflecting a rapid change in content consumption patterns and behaviors of viewers, the Company is preparing for new growth in the home platform domain by providing customized services using ICT convergence technologies such as AI and big data in addition to differentiated contents.

In the corporate business market, the Company expects to see growth in new business areas, following the emergence of new services based on novel technology, including AI data centers. The Company is continuing its efforts to generate stable returns by strengthening its competitiveness in the traditional fixed line-based business through expansion of core infrastructure including data centers and leased lines, for which market demand has been continually growing.

 

C.	Growth Potential

 

				(Unit: in persons)
Classification				As of June 30, 2025				As of December 31,
								2024				2023
Fixed-line Subscribers		High-speed Internet			24,987,492				24,721,782				24,098,164
		Fixed-line telephone			10,006,107				10,325,245				10,973,838
		IPTV			21,310,250				21,190,908				20,870,152
		Cable TV			12,273,098				12,342,797				12,586,391

 

*	Source: MSIT website.

**	High-speed Internet and fixed-line telephone subscribers represent the number of subscribers as of June 30, 2025, while IPTV and cable TV subscribers represent the average number of subscribers in the second half of 2024.

 

D.	Cyclical Nature and Seasonality

There is little difference among the services provided by operators of high-speed Internet, fixed-line telephone and broadcasting services. Such services, which demonstrate characteristics of essential public utilities, are subject to a subscriber-based business model, and are not sensitive to cyclical economic changes. Due to the low income elasticity of telecommunications services, the overall telecommunications market is not expected to be particularly affected by an economic downturn.

 

E.	Domestic and Overseas Market Conditions

Set forth below is the historical market share of the Company.

 

(Unit: in percentages)
Classification		As of June 30, 2025				As of December 31,
						2024				2023
High-speed Internet (including resales)			28.7				28.9				28.7
Fixed-line telephone (including Voice over Internet Protocol (“VoIP”))			18.5				18.3				18.0
IPTV			31.8				32.0				31.8
Cable TV			22.9				22.8				22.4

 

*	Source: MSIT website.

 

13

**	With respect to fixed-line telephone, the market share was calculated based on market shares among the Company, KT and LG U+ and is based on the number of landline and IP phone subscribers.

***	Market shares for the high-speed Internet and fixed-line telephone markets are based on the market shares as of June 30, 2025 and market shares for the IPTV and cable TV markets are based on the average number of subscribers in the second half of 2024.

The Company is engaged in a number of business areas including high-speed Internet, home telephone, corporate business, IPTV and cable TV pursuant to the relevant communications regulations such as the Telecommunications Business Act, the Internet Multimedia Broadcast Services Act and the Broadcasting Act. In each of its principal business areas, the Company competes on the basis of price, service quality and speed. In the IPTV business, the ability to offer complex services and differentiated contents are becoming increasingly important. General telecommunications businesses operate in a licensed industry with a high barrier of entry, which is dominated by the Company, KT and LG U+.

[Other Businesses]

 

A.	Other businesses

SK Stoa operates the television shopping (“T-Commerce”) business, which includes the commercial retail data broadcasting channel business, offering an interactive service that integrates television home shopping and data home shopping services. Such integrated service allows television viewers to organize various product categories on the television screen and select and purchase desired products using a television remote control or mobile device, unlike traditional home shopping services that only allowed for real-time purchase through the relevant broadcast.

2. Key Financial Data by Business Line

 

A.

Assets

 

						(Unit: in millions of Won and percentages)
Classification		As of June 30, 2025								As of December 31,
										2024								2023
		Amount				Ratio				Amount				Ratio				Amount				Ratio
Wireless			25,004,622				74	%			25,154,898				75	%			25,608,563				77	%
Fixed-line			7,526,439				22	%			7,174,920				21	%			6,825,342				20	%
Other			1,159,031				4	%			1,276,546				4	%			910,020				3	%
Subtotal			33,690,092				100	%			33,606,364				100	%			33,343,925				100	%
Consolidation Adjustment			(4,385,782	)			—				(3,091,111	)			—				(3,224,698	)			—
Total			29,304,310				—				30,515,254				—				30,119,227				—

 

B.

Revenue

 

						(Unit: in millions of Won and percentages)
Classification		For the six months ended June 30, 2025								For the year ended December 31,
										2024								2023
		Amount				Ratio				Amount				Ratio				Amount				Ratio
Wireless			6,518,743				74	%			13,318,213				74	%			13,123,166				75	%
Fixed-line			2,076,404				24	%			4,075,412				23	%			3,928,020				22	%
Other			197,330				2	%			546,984				3	%			557,325				3	%
Total			8,792,477				100	%			17,940,609				100	%			17,608,511				100	%

 

C.	Operating Profit

 

						(Unit: in millions of Won and percentages)
Classification		For the six months ended June 30, 2025								For the year ended December 31,
										2024								2023
		Amount				Ratio				Amount				Ratio				Amount				Ratio
Wireless			741,654				80	%			1,529,971				84	%			1,463,934				84	%
Fixed-line			202,059				22	%			366,517				20	%			329,072				19	%
Other			(11,724	)			(2	)%			(64,929	)			(4	)%			(42,771	)			(2	)%
Subtotal			931,989				100	%			1,831,559				100	%			1,750,235				100	%
Consolidation Adjustment			(26,345	)			—				(8,150	)			—				2,969				—
Total			905,644				—				1,823,409				—				1,753,204				—

 

14

3. Updates on Major Products and Services

 

								(Unit: in millions of Won and percentages)
Business		Major Companies		Items		Major Trademarks		For the six months ended June 30,								For the year ended December 31,
								2025								2024								2023
								Consolidated Sales Amount				Ratio				Consolidated Sales Amount				Ratio				Consolidated Sales Amount				Ratio
Wireless		SK Telecom Co., Ltd., PS&Marketing Co., Ltd., Service Ace Co., Ltd. SK O&S Co., Ltd., etc.		Mobile communications service, wireless data service, ICT service and others		T, 5GX, T Plan and others			6,518,743				74	%			13,318,213				74	%			13,123,166				75	%
Fixed-line		SK Broadband Co., Ltd., Home & Service Co., Ltd., SK Telink Co., Ltd., etc.		Fixed-line phone, high-speed Internet, data and network lease service and others		B tv, 00700 international call, 7mobile and others			2,076,404				24	%			4,075,412				23	%			3,928,020				22	%
Other		SK stoa Co., Ltd.., etc.		Commercial retail data broadcasting channel service and others		Stoa ON			197,330				2	%			546,984				3	%			557,325				3	%
Total									8,792,477				100	%			17,940,609				100	%			17,608,511				100	%

4. Price Trends for Major Products

[Wireless Business]

As of June 30, 2025, based on the Company’s standard monthly subscription plan, the basic service fee was Won 12,100 (including value-added tax) and the usage fee was Won 1.98 per second. Among the 4G-based plans, the “T-Plan Safe 4G” provides 4 GB of data and unlimited voice calls at Won 50,000 per month (including value-added tax). Among the 5G-based plans, the “Basic” plan provides 11 GB of data and unlimited voice calls at Won 49,000 per month (including value-added tax). In March 2024, the Company launched the “Compact” plan, which provides 5G data at Won 39,000 per month (including value-added tax). The Company plans to continue to introduce new services that reach out to different customer segments. The Company provides a variety of other subscription plans catering to subscriber demand, which may be reviewed on the Company’s website at www.tworld.co.kr.

[Fixed-line Business]

In 2025, SK Broadband has been launching various new subscription plans. On March 4, 2025, SK Broadband launched the “AI Speaker Set-Top Box” for its Internet protocol cable TV service, which meets cable TV customers’ demand for AI services based on voice recognition and offers broader choice of set-top box options. The monthly rental fee for the AI Speaker Set-Top Box is Won 6,600 per month based on a three-year contract. As part of a launch promotion, customers who newly subscribe under a three-year contract by August 31, 2025 receive a rental fee discount of Won 6,600.

On May 9, 2025, SK Broadband launched two new subscription plans, “B tv pop 230+” and “B tv pop 180+”, which allow users to combine IP cable TV products with B tv+ monthly subscription services. Under a three-year contract with the Internet and IPTV bundle, the monthly fee is Won 17,600 for B tv pop 230+ and Won 15,400 for B tv pop 180+. B tv+ is SK Broadband’s multi-genre monthly subscription plan which includes access to popular movies, children’s contents and major networks’ drama series. The regular price is Won 14,190 per month, but when subscribed through B tv pop 230+ or B tv pop 180+, the plan is available for Won 7,700 per month under a three-year contract. Accordingly, users can enjoy the same contents at up to a 46% lower cost compared to subscribing separately.

SK Broadband also provides a variety of other subscription plans based on consumer demand, which may be reviewed on SK Broadband’s website at www.bworld.co.kr.

 

15

5. Investment Status

[Wireless Business]

 

A.	Investment in Progress and Future Investment Plan

 

(Unit: in billions of Won)
Purpose of investment		Subject of investment		Investment period		Expected investment amount		Amount already invested		Investment effect
Upgrade/ New installation		Network, systems and others		Six months ended June 30, 2025		To be determined		450		Upgrades to the existing services and expanded provision of network services including 5G

[Fixed-line Business]

 

A.	Investment in Progress and Future Investment Plan

 

								(Unit: in billions of Won)
Purpose of investment		Subject of investment		Investment period		Amount already invested*		Future investment		Investment effect
Coverage expansion, upgrade of media platform		Network, systems, Internet data center and others		Six months ended June 30, 2025		291		To be determined		Securing subscriber network and equipment; quality and system improvement

 

*	Represents investments by SK Broadband on a separate basis.

6. Revenues

 

				(Unit: in millions of Won)
Business		Sales type		Item				For the six months ended June 30, 2025				For the year ended December 31, 2024				For the year ended December 31, 2023
Wireless		Services		Mobile communication, wireless data, information communication		Export			100,581				212,235				169,885
						Domestic			6,418,162				13,105,978				12,953,281
						Subtotal			6,518,743				13,318,213				13,123,166
Fixed-line		Services		Fixed-line, high-speed Internet, data, lease line service		Export			81,839				213,815				178,824
						Domestic			1,994,565				3,861,597				3,749,196
						Subtotal			2,076,404				4,075,412				3,928,020
Other		Services		Commercial retail data broadcasting channel services		Export			—				—				—
						Domestic			197,330				546,984				557,325
						Subtotal			197,330				546,984				557,325
						Export			182,420				426,050				348,709
Total						Domestic			8,610,057				17,514,559				17,259,802
						Total			8,792,477				17,940,609				17,608,511

 

		(Unit: in millions of Won)
For the six months ended June 30, 2025		Wireless				Fixed-line				Other				Sub total				Consolidation adjustment				After consolidation
Total sales			7,281,393				2,675,810				218,490				10,175,693				(1,383,216	)			8,792,477
Internal sales			762,650				599,406				21,160				1,383,216				(1,383,216	)			—
External sales			6,518,743				2,076,404				197,330				8,792,477				—				8,792,477
Depreciation and amortization			1,275,175				486,113				10,495				1,771,783				(39,348	)			1,732,435
Operating profit (loss)			741,654				202,059				(11,724	)			931,989				(26,345	)			905,644
Finance profit (loss)																							(168,059	)
Loss from investments in associates and joint ventures																							(5,287	)
Other non-operating profit (loss)																							15,973
Profit before income tax																							748,271

 

16

7. Derivative Transactions

 

A.	Current Swap Contract Applying Cash Flow Risk Hedge Accounting

Currency and interest rate swap contracts under cash flow hedge accounting as of June 30, 2025 are as follows:

[SK Telecom]

 

Borrowing date		Hedged item		Hedged risk		Contract type		Financial institution		Duration of contract
July 20, 2007		Fixed rate foreign currency denominated bonds		Foreign currency risk		Cross currency swap		Morgan Stanley and four other banks		July 20, 2007 – July 20, 2027
June 28, 2023		Fixed rate foreign currency denominated bonds		Foreign currency risk		Cross currency swap		Citibank, Shinhan Bank, KDB, J.P. Morgan		June 28, 2023 – June 28, 2028
October 7, 2024		Floating rate Won denominated borrowings		Interest rate risk		Interest rate swap		DBS Bank Ltd		October 10, 2024 – October 8, 2026
May 28, 2025		Floating rate Won denominated bonds		Foreign currency risk and interest rate risk		Cross currency interest rate swap		DBS Bank Ltd		May 28, 2025 – May 26, 2028

[SK Broadband]

 

Borrowing date		Hedged item		Hedged risk		Contract type		Financial institution		Duration of contract
June 28, 2023		Non-guaranteed foreign currency denominated bonds (face value of USD 300,000,000)		Foreign currency risk		Cross currency swap		Citibank, Shinhan Bank, KDB, J.P. Morgan		June 28, 2023 – June 28, 2028

8. Major Contracts

None.

9. R&D Investments

Set forth below are the Company’s R&D expenditures.

 

				(Unit: in millions of Won except percentages)
Category				For the six months ended June 30, 2025				For the year ended December 31, 2024				For the year ended December 31, 2023				Remarks
Raw material					13				492				48				—
Labor					62,742				134,508				140,790				—
Depreciation					59,499				134,989				137,264				—
Commissioned service					27,663				61,588				51,749				—
Others					32,379				61,267				61,992				—
Total R&D costs					182,296				392,844				391,843				—
Government Subsidies					—				—				—				—
Accounting		Sales and administrative expenses			169,957				378,079				369,507				—
		Development costs (Intangible assets)			12,338				14,765				22,334				—
R&D cost / sales amount ratio (Total R&D costs / Current sales amount×100)					2.07	%			2.19	%			2.23	%			—

 

17

10. Other information relating to investment decisions

 

A.	Brand Management Policies

The Company manages its corporate brand and other product brands in a comprehensive way to protect and increase their value. The Company operates an intranet system called “Comm.ON” in order to implement consistent communication with consumers across various areas including branding, design, marketing and public relations, and systematically manages the development, registration and licensing of brands through such system.

 

B.	Business-related Intellectual Property

[SK Telecom]

As of June 30, 2025, the registered patents and trademarks held by the Company included 2,979 Korean-registered patents, 1,746 foreign-registered patents and 772 Korean-registered trademarks. The number of registered patents and trademarks is subject to constant change due to the acquisition of new rights, expiration of terms, abandonments and dispositions.

[SK Broadband]

As of June 30, 2025, SK Broadband held 207 Korean-registered patents and 42 foreign-registered patents (including those held jointly with other companies). It also holds 277 Korean-registered trademarks. SK Broadband owns intellectual property rights to its proprietary graphic design of the alphabet “B” representing its brand. The designed alphabet “B” is registered in all business categories for trademarks (total of 45). The number of registered patents and trademarks is subject to continual change due to the acquisition of new rights, expiration of terms, abandonments and dispositions.

 

C.	Business-related Pollutants and Environmental Protection

[SK Telecom]

The Company does not directly engage in any manufacturing and therefore does not undertake any industrial processes that emit pollutants into the air or industrial processes in which hazardous materials are used. Nevertheless, the Company clearly recognizes the severity of the climate crisis and has been diligently fulfilling its social obligations by establishing a systematic and practical environmental management strategy system. Under the vision of “realizing a sustainable future based on AI” and to achieve Net Zero by 2050, the Company is making efforts to (1) preemptively respond to climate change, (2) improve its environmental management system and (3) create an eco-friendly green culture. To this end, the Company was one of the first information technology companies in Korea to join the RE100 (Renewable Electricity 100%) initiative and signed a green premium contract with Korea Electric Power Corporation. The Company has been implementing company-wide adoption of renewable energy through efforts such as installing solar power generation equipment in its office buildings and base stations. In addition, the Company leads in energy savings and environmental protections based on AI technology, and recently became the first company in the telecommunications industry to obtain carbon emission rights by reducing greenhouse gas through integration of telecommunications equipment and technology upgrades.

[SK Broadband]

SK Broadband does not directly engage in any manufacturing processes that emit environmental pollutants, and more than 99% of its greenhouse gas emissions is indirect emissions from its use of external electricity. SK Broadband was selected as a business subject to allocation of emission permits as part of Korea’s greenhouse gas emissions trading scheme that commenced in 2015, and it actively fulfills its obligations and consistently achieves the targets set by the government.

In 2021, SK Broadband declared its goal to achieve Net Zero by 2045 in an effort to actively participate in the international community’s response to climate change. Prior to the declaration, SK Broadband had already subscribed to the RE100 initiative in 2020. Since 2021, SK Broadband has participated in Korea Electrical Power Corporation’s renewable energy power purchase program, “Green Premium,” to purchase renewable energy and has installed additional solar power generation facilities to increase the self-production and use of renewable energy.

 

18

III.	FINANCIAL INFORMATION

1. Summary Financial Information (Consolidated and Separate)

 

A.	Summary Financial Information (Consolidated)

Below is the summary consolidated financial information of the Company as of June 30, 2025, December 31, 2024 and December 31, 2023 and for the six months ended June 30, 2025 and for the years ended December 31, 2024 and 2023. The Company’s interim consolidated financial statements as of June 30, 2025 and December 31, 2024 and for the six months ended June 30, 2025 and 2024, which are prepared in accordance with K-IFRS, are attached hereto.

 

(Unit: in millions of Won except number of companies)
		As of June 30, 2025				As of December 31, 2024				As of December 31, 2023
Assets
Current Assets			7,536,918				7,476,682				6,585,602
•  Cash and Cash Equivalents			2,353,159				2,023,721				1,454,978
•  Accounts Receivable – Trade, net			2,038,049				1,989,306				1,978,532
•  Accounts Receivable – Other, net			416,144				369,192				344,350
•  Others			2,729,566				3,094,463				2,807,742
Non-Current Assets			21,767,392				23,038,573				23,533,625
•  Long-Term Investment Securities			1,777,448				1,877,922				1,679,384
•  Investments in Associates and Joint Ventures			2,203,227				2,341,827				1,915,012
•  Property and Equipment, net			11,920,739				12,617,394				13,006,196
•  Goodwill			2,072,493				2,072,493				2,075,009
•  Intangible Assets, net			1,916,080				2,194,871				2,861,137
•  Others			1,877,405				1,934,066				1,996,887
Total Assets			29,304,310				30,515,255				30,119,227
Liabilities
Current Liabilities			7,284,859				9,224,278				6,993,980
Non-Current Liabilities			10,048,053				9,463,343				10,896,848
Total Liabilities			17,332,912				18,687,621				17,890,828
Equity
Equity Attributable to Owners of the Parent Company			11,851,898				11,698,627				11,389,046
Share Capital			30,493				30,493				30,493
Capital Surplus (Deficit) and Other Capital Adjustments			(11,947,328	)			(11,954,936	)			(11,828,644	)
Retained Earnings			23,054,296				22,976,127				22,799,981
Reserves			714,437				646,943				387,216
Non-controlling Interests			119,500				129,007				839,353
Total Equity			11,971,398				11,827,634				12,228,399
Total Liabilities and Equity			29,304,310				30,515,255				30,119,227

 

(Unit: in millions of Won except per share data and number of consolidated subsidiaries)
		For the six months ended June 30, 2025				For the year ended December 31, 2024				For the year ended December 31, 2023
Operating Revenue			8,792,477				17,940,609				17,608,511
Operating Profit			905,644				1,823,409				1,753,204
Profit Before Income Tax			748,271				1,761,765				1,488,179
Profit for the Period			444,822				1,387,095				1,145,937
Profit for the Period Attributable to Owners of the Parent Company			454,060				1,250,155				1,093,611
Profit for the Period Attributable to Non-controlling Interests			(9,238	)			136,940				52,326
Basic Earnings Per Share (Won)			2,086				5,780				4,954
Diluted Earnings Per Share (Won)			2,083				5,765				4,950
Total Number of Consolidated Subsidiaries			19				21				25

 

B.	Summary Financial Information (Separate)

Below is the summary separate financial information of the Company as of June 30, 2025, December 31, 2024 and December 31, 2023 and for the six months ended June 30, 2025 and for the years ended December 31, 2024 and 2023. The Company’s interim separate financial statements as of June 30, 2025 and December 31, 2024 and for the six months ended June 30, 2025 and 2024, which are prepared in accordance with K-IFRS, are attached hereto.

 

19

			(Unit: in millions of Won)
		As of June 30, 2025				As of December 31, 2024				As of December 31, 2023
Assets
Current Assets			4,997,448				5,242,405				4,703,844
•  Cash and Cash Equivalents			796,381				1,165,158				631,066
•  Accounts Receivable – Trade, net			1,602,683				1,508,893				1,495,617
•  Accounts Receivable – Other, net			462,071				390,243				343,036
•  Others			2,136,313				2,178,111				2,234,125
Non-Current Assets			19,376,218				19,343,221				20,292,088
•  Long-Term Investment Securities			1,291,984				1,418,465				1,426,290
•  Investments in Subsidiaries and Associates			5,957,488				4,899,558				4,670,568
•  Property and Equipment, net			7,950,994				8,515,225				9,076,459
•  Goodwill			1,306,236				1,306,236				1,306,236
•  Intangible Assets, net			1,410,567				1,683,018				2,250,829
•  Others			1,458,949				1,520,719				1,561,706
Total Assets			24,373,666				24,585,626				24,995,932
Liabilities
Current Liabilities			5,780,911				6,240,886				5,505,470
Non-Current Liabilities			7,329,768				7,383,886				9,054,369
Total Liabilities			13,110,679				13,624,772				14,559,839
Equity
Share Capital			30,493				30,493				30,493
Capital Surplus (Deficit) and Other Capital Adjustments			(4,547,750	)			(4,551,820	)			(4,766,147	)
Retained Earnings			15,411,719				15,273,451				15,032,473
Reserves			368,525				208,730				139,274
Total Equity			24,373,666				10,960,854				10,436,093
Total Liabilities and Equity			24,396,820				24,585,626				24,995,932
(Unit: in millions of Won)
		For the six months ended June 30, 2025				For the year ended December 31, 2024				For the year ended December 31, 2023
Operating Revenue			6,302,575				12,774,060				12,589,220
Operating Profit			733,264				1,523,175				1,455,870
Profit Before Income Tax			796,047				1,477,084				1,354,939
Profit for the Period			511,475				1,280,484				1,059,750
Basic Earnings Per Share (Won)			2,356				5,923				4,798
Diluted Earnings Per Share (Won)			2,352				5,907				4,794

2. Dividends and Others

 

A.	Dividend Policy

The Company seeks to enhance its enterprise value through distribution of cash dividends based on stable business performance and by increasing long-term shareholder returns based on sustainable growth. The Company has established and is implementing a capital allocation strategy that balances the use of additional free cash flow generated from enhancement in performance and operational improvement across shareholder returns, investments for growth and enhancement in financial structure.

The Company determines the amount of its shareholder return in consideration of a comprehensive set of factors including its business performance, investment plans, financial status and prospects, and the Company may make shareholder return in the form of cash or shares in accordance with its Articles of Incorporation. Cash dividends are determined based on the Company’s consideration of investment needs for its continued future growth as well as its annual business performance and overall cash flow status. In the case of share dividends, the type of the shares to be distributed may be determined pursuant to the resolution of the Company’s general meeting of shareholders.

In accordance with the global trend towards stable dividend distribution, the Company adopted a quarterly dividend distribution policy through the approval of certain amendments to the Company’s Articles of Incorporation at the 37^th General Meeting of Shareholders held in March 2021 and has been distributing quarterly dividends since the second quarter of 2021.

 

20