6-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 6-K

REPORT OFFOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

FOR THE MONTH OF DECEMBER 2022

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 ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐

Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐

Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submission to furnish a report or other document that the registration foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant’s “home country”), or under the rules of the home country exchange on which the registrant’s securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant’s security holders, and if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.

QUARTERLY BUSINESS REPORT

(From January 1, 2022 to September 30, 2022)

THIS IS A SUMMARY OF THE QUARTERLY 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

Omitted in quarterly reports in accordance with applicable Korean disclosure rules. For more information, please refer to the Company’s semi-annual business report for the six months ended June 30, 2022.

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 switching stations
	Service Ace Co., Ltd.	Management and operation of customer centers
	SK M&Service Co., Ltd.	Database and online information services
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<br>digital contents<br> <br>Various media-related services, such as channel management services including VOD
	Home & Service Co., Ltd.	System maintenance of high-speed Internet, IPTV and fixed-line services
	SK Telink Co., Ltd.	International wireless direct-dial “00700” services and 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

[Wireless Business]

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 3G, 4G and 5G markets 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 telecommunication convergence products through its subsidiary, PS&Marketing Co., Ltd. (“PS&Marketing”). PS&Marketing provides differentiated service to customers through the establishment of new sales channels and product development. Through its subsidiaries Service Ace Co., Ltd. (“Service Ace”) and Service Top Co., Ltd., the Company operates customer service centers in Seoul and provides telemarketing services. Additionally, SK O&S Co., Ltd. (“SK O&S”), the Company’s subsidiary responsible for the operation of the Company’s networks, provides customers with quality network services and provides the Company with technological know-how in network operations.

The Company plans to maintain stable growth in the sales of its wireless business based on a solid expansion in the number of 5G subscribers, while continuously enhancing profitability by pursuing efficient investments in, and operation of, its wireless networks and the stabilization of market competition. ****

The Company’s “T Universe” service, which was launched in the second half of 2021, provides a wide array of subscription products through collaboration with various partnering businesses. T Universe offers a variety of subscription product line-ups including discounts and benefits on products relating to everyday life as well as specialized e-commerce products, and the Company plans to enhance customer value by further strengthening the convenience of the T Universe offerings in the future.

The Company’s newly launched service, “A.” (or “A dot”), is an artificial intelligence service for consumers, which is evolving to become tailored for each customer, and the Company is seeking to make it highly personalized through deep learning. In order for A. to become a service embedded in customers’ daily lives, the Company plans to integrate A. with various other services offered by the Company and third party businesses.

Another new business of the Company, “ifland,” is a metaverse platform service that emphasizes the element of “communication” in the metaverse environment, which market is expected to have a high growth potential as the contactless culture becomes more prevalent and as technological advancements in areas such as 5G, augmented reality and virtual reality are achieved.

A.	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 mobile telecommunication 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 size of population that uses telecommunication services and telecommunications expenditures per capita. While it is possible for Korean telecommunication service providers to provide services abroad through acquisitions or otherwise, foreign telecommunication services markets have their own characteristics depending, among others, on the regulatory environment and demand for telecommunication services.

B.	Growth Potential

The Korean mobile communication 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 IoT-based B2B businesses.

(Unit: in 1,000 persons)


Classification			2021		2020
Number of subscribers	SK Telecom	30,440		29,696		29,089
	Others (KT, LG U+)	32,605		31,869		31,341
	MVNO	12,259		10,355		9,111
	Total	75,304		71,920		69,541
*	Source: Wireless telecommunications service data from the MSIT as of September 30, 2022.<br>
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C.	Domestic and Overseas Market Conditions
---	---

The Korean mobile communication market includes the entire population of Korea with mobile communication 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 to 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;

(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 September 30,<br>2022
			2021		2020
Mobile communication services		48.3		48.2		48.1
*	Source: Wireless telecommunications service data from the MSIT as of September 30, 2022.<br>
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D.	Competitive Strengths
---	---

The Company successfully completed the Spin-off of SK Square Co., Ltd. (“SK Square”) from SK Telecom in 2021 (the “Spin-off”) to maximize shareholder value and launched “SKT 2.0.” Concurrently, the Company reorganized its business to center around five major business areas and is seeking maximization of overall corporate value by establishing and executing strategies optimized for each business segment and pursuing growth in each segment. For the nine months ended September 30, 2022, the Company recorded Won 4,343.4 billion in operating revenue and Won 465.6 billion in operating profit on a consolidated basis and Won 3,122.6 billion in operating revenue and Won 388.7 billion in operating profit for the period on a separate basis. The Company is continuing to increase its revenue and enhance its profitability by leveraging its competitiveness in the 5G market and secured 12.47 million 5G subscribers as of September 30, 2022.

SK Telink Co., Ltd. (“SK Telink”), a consolidated subsidiary of the Company, operates its MVNO service, “SK 7Mobile,” which is offered at reasonable rates and provides excellent quality. SK Telink is increasing its efforts to develop low-cost distribution channels and create niche markets through targeted marketing towards customers including foreign workers, middle-aged adults and students.

SK O&S, a subsidiary of the Company responsible for the operation of the Company’s base stations and related transmission and power facilities, offers quality fixed-line and wireless network services to customers, including mobile office products to business customers. In addition, Service Ace is developing its competence as a marketing company while providing top-quality customer service.

PS&Marketing, a subsidiary of the Company, provides a sales platform for products of the Company and SK Broadband including fixed-line and wireless telecommunication products that address customers’ needs for various convergence products. PS&Marketing provides differentiated service to clients through the establishment of new sales channels and product development.

[Fixed-line Business]

For the nine months ended September 30, 2022, SK Broadband Co., Ltd. (“SK Broadband”) recorded Won 3,103.0 billion in revenue on a consolidated basis, which represented a 3.8% increase from Won 2,988.5 billion for the nine months ended September 30, 2021. The sales growth was primarily attributable to the growth in SK Broadband’s media business in light of the expansion of its subscriber base, and the growth of its B2B business including an increase in the utilization rate of its 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, fix-line telecommunications, dedicated telecommunication lines and data center services. For the nine months ended September 30, 2022, the media business segment recorded Won 1,414.8 billion in revenue, which represented a 3.0% increase compared to the nine months ended September 30, 2021. For the nine months ended September 30, 2022, the fixed-line business segment recorded Won 1,688.2 billion in revenue, which represented an 4.5% increase compared to the nine months ended September 30, 2021.

A.	Industry Characteristics

The domestic telecommunication 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 economic factors including the domestic user population and the level of telecommunication service expenditures in light of the domestic income level. Domestic telecommunication companies may expand overseas through acquisitions or direct expansion, but the overseas telecommunication 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 transmission to viewers through telecommunication facilities. The broadcasting market can 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. SK Broadband 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 overall 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 needs of subscribers by developing new services and penetrating the market. Fixed-line telecommunications services have become universal and essential means of communication 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.

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 communication services is developed.

In the high-speed Internet services market, the demand for faster and more reliable premium Giga Internet services is increasing due to the growth in usage of home mobile networks using Wi-Fi and an increased consumption of high-definition large media content.

With the mergers and acquisitions among IPTV service providers and multiple service operators, the paid broadcasting market has reorganized around IPTV operators, and companies are moving away from competition based on subscriber base expansion to competition based on media platform services. The transition to a contactless service society due to COVID-19 has led to increased consumption of paid content by viewers, accelerating competition through the ability to source unique contents. The Company expects 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 is continuing its efforts to generate stable returns by securing growth drivers in new service areas such as cloud computing, while also strengthening its competitiveness in the traditional fixed line-based business through expansion of core infrastructure including data centers, which have seen an increase in market demand recently.

B.	Growth Potential

(Unit: in persons)

Classification
	2021		2020
Fixed-line Subscribers	High-speed Internet	23,423,443	22,944,268	22,330,182
	Fixed-line telephone	11,763,635	12,211,954	12,859,279
	IPTV	19,689,655	19,346,812	17,872,297
	Cable TV	12,927,463	12,986,039	13,305,796
*	Source: MSIT website.
---	---
*	High-speed Internet and fixed-line telephone subscribers represent the number of subscribers as of<br>September 30, 2022, while IPTV and cable TV subscribers represent the average number of subscribers in the second half of 2021.
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C.	Cyclical Nature and Seasonality
---	---

High-speed Internet and fixed-line telephone services operate in mature markets that are comparatively less sensitive to cyclical economic changes as the services provided by different operators have become less differentiated. TV services have become necessities that provide broadcasting, and the market, which is subject to a subscriber-based business model, has little sensitivity to cyclical economic changes. The telecommunications services market overall is not expected to be particularly affected by economic downturns due to the low income elasticity of demand for telecommunication services.

D.	Domestic and Overseas Market Conditions

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

(Unit: in percentages)

Classification	As of September 30,<br>2022
			2021		2020
High-speed Internet (including resales)		28.5		28.7		29.0
Fixed-line telephone (including Voice over Internet Protocol (“VoIP”)		17.7		17.5		16.8
IPTV		30.7		30.6		30.3
Cable TV		22.2		22.2		22.5
*	Source: MSIT website.
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*	With respect to Internet telephone, the market share was calculated based on market shares among the<br>Company, KT and LG U+ and is based on the number of IP phone subscribers.
---	---
*	Since April 2021, VoIP subscribers of SK Telink have been included in the total clients of the Company.<br>
---	---
*	Market shares of High-speed Internet and Fixed-line telephone represent the market shares as of<br>September 30, 2022 and market shares of IPTV and Cable TV represent the average market shares in the second half of 2021.
---	---

SK Broadband 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, SK Broadband principally 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 SK Broadband, KT and LG U+.

[Other Businesses]

The commercial retail data broadcasting channel business offers an interactive service that integrates television home shopping and data shopping services. Such service allows television viewers to use video-on-demand (“VOD”) services to purchase products sold on television home shopping channels, which were previously only available for purchase in real-time when such relevant programming was being broadcast.

In order to secure core competencies at an early stage and achieve differentiation, the Company has been actively searching for high-efficiency television channels while increasing the competitiveness of its content production capacity by building the Company’s own media center and adopting a media wall with the objective of transforming it into an eco-friendly digital studio. In addition to enhancing the convenience of shopping experience by offering various media content on its mobile live platform, the Company was the first in the industry to launch a cloud-based television application service, “Stoa ON,” which provides personalized digital television shopping services. Furthermore, the Company has been establishing itself as a leading shopping channel service provider by securing a diverse product portfolio and engaging in product development in areas ranging from fashion to health food. Within three years following the spin-off of SK stoa Co., Ltd. (“SK Stoa”) into a separate entity, its commercial retail data broadcasting channel business has attained the leading position in the television commerce (“T-commerce”) market.

2. Key Financial Data by Business Line

A.	Assets
				(Unit: in millions of Won and percentages)
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
Classification	As of September 30,<br>2022						As of December 31,
			2021							2020*
	Amount			Ratio			Amount				Ratio			Amount		Ratio
Wireless		26,306,246			79	%		27,126,972				80	%		32,707,344		73	%
Fixed-line		6,515,579			19	%		6,319,019				19	%		6,091,992		14	%
Other		666,916			2	%		462,021				1	%		6,244,788		14	%
Subtotal		33,488,741			100	%		33,908,011				100	%		45,044,125		100	%
Consolidation Adjustment		(2,958,966	)		—			(2,996,734	)			—			2,862,832		—
Total		30,529,775			—			30,911,277				—			47,906,957		—
*	Includes assets that were spun-off to SK Square in the Spin-off.
---	---

B.	Revenue
				(Unit: in millions of Won and percentages)
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
Classification	For the nine months endedSeptember 30,<br>2022						For the year ended December 31,
			2021						2020*
	Amount			Ratio			Amount			Ratio			Amount		Ratio
Wireless		9,657,711			75	%		12,718,473			76	%		12,295,684		66	%
Fixed-line		2,857,464			22	%		3,677,706			22	%		3,405,677		18	%
Other		395,337			3	%		352,406			2	%		2,923,290		16	%
Total		12,910,512			100	%		16,748,585			100	%		18,624,651		100	%
*	Based on revenue prior to the Spin-off.
---	---
C.	Operating Profit
---	---
				(Unit: in millions of Won and percentages)
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
Classification	For the nine months endedSeptember 30,<br>2022						For the year ended December 31,
			2021							2020*
	Amount			Ratio			Amount				Ratio			Amount			Ratio
Wireless		1,138,569			82	%		1,123,147				78	%		1,031,887			80	%
Fixed-line		261,280			19	%		294,070				21	%		258,973			20	%
Other		(14,429	)		(1	)%		14,550				1	%		645			0	%
Subtotal		1,385,420			100	%		1,431,767				100	%		1,291,505			100	%
Consolidation Adjustment		(27,851	)		—			(44,605	)			—			(42,927	)		—
Total		1,357,569			—			1,387,162				—			1,248,578			—
*	Based on operating profit reflecting the Spin-off.<br>
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3. Updates on Major Products and Services

				(Unit: in millions of Won and percentages)
Business	Major Companies	Items	Major Trademarks	For the nine monthsended September 30,2022						For the year ended December 31,
						2021						2020
				ConsolidatedSalesAmount			Ratio			ConsolidatedSalesAmount			Ratio			ConsolidatedSalesAmount			Ratio
Wireless	SK Telecom Co., Ltd.,<br>PS&Marketing Co., Ltd.,<br><br><br>Service Ace Co., Ltd.<br>SK O&S Co., Ltd.<br> <br>SK M&Service<br>Co., Ltd.	Mobile communication service,<br>wireless data service,<br>ICT service	T, 5GX, T Plan and others		9,657,711			74.8	%		12,718,473			75.9	%		12,295,684			66	%
Fixed-line	SK Broadband Co., Ltd.,<br>SK Telink Co., Ltd.<br><br><br>Home & Service Co., Ltd.	Fixed-line phone,<br>high-speed Internet,<br>data and network lease service	B tv, 00700 international call, 7mobile and others		2,857,464			22.1	%		3,677,706			22.0	%		3,405,677			18	%
Other	SK stoa Co., Ltd.	Commercial retail data broadcasting channel services and others	Stoa ON		395,337			3.1	%		352,406			2.1	%		2,923,290			16	%
Total					12,910,512			100.0	%		16,748,585			100.0	%		18,624,651	%		100	%

4. Price Trends for Major Products

[Wireless Business]

As of September 30, 2022, 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 8 GB of data and unlimited voice calls at Won 49,000 per month (including value-added tax). The Company provides a variety of other subscription plans catered to subscriber demand, which may be reviewed on the Company’s website at www.tworld.co.kr.

[Fixed-line Business]

In July 2022, SK Broadband launched the “Nowadays Home Integration Plan,” which provides discounts for the users subscribing to both Internet and IPTV (including telephone) services. The plan combines and simplifies the existing fixed-line integration plans (including “Home Integration Plan” and “Core Fee Plan”). The amount of discount varies by the Internet plan (at a speed of 100M/500M or higher). As for the Internet plan, the amount of discount ranges from Won 1,100 to Won 5,500, whereas the amount of discount for the IPTV plan is set as Won 2,200. A VOD coupon (Won 3,300/month) is additionally provided for customers who subscribe to premium internet plans and “B tv All” or higher IPTV plans.

In addition, to facilitate customers’ understanding of its service, SK Broadband modified some of the names of its Internet and IPTV products. English in the names were replaced with Korean, and the names were also changed to better reflect the characteristics of the products. For instance, “Wifi” was replaced with the Korean transcription of Wifi, and “Smart internet” was renamed to “Remote Care Internet.” As for IPTV, “B tv New Basic” was renamed to “B tv Economy,” and “B tv Choice” was renamed to “B tv Mini.”

In September 2022, SK Broadband launched the “Nowadays Family Integration” plan, which provides a discount for users from the same family subscribing to the Internet, mobile and IPTV plans. The plan combines the existing fixed mobile integration plans for families (including “Whole Family Plan,” “Whole Family Free,” “TV plus,” etc.) with different terms of usage and provides additional benefits. The plan provides a discount from Won 4,400 and to Won 13,200 depending on the user’s Internet plan (at a speed of 100M/500M/or above 1G). As for mobile, the plan provides a discount from Won 3,500 to Won 24,000 depending on the number of mobile phone lines connected to the plan. If IPTV is added, the plan provides an additional discount of Won 1,100 and a free B tv data pack (worth Won 5,500) for mobile phones.

SK Broadband also provides a variety of other subscription plans.

5. Investment Status

[WirelessBusiness]

A.	Investment in Progress
(Unit: in billions of Won)
---	---	---	---	---	---	---	---	---	---
Business	Classification	Investmentperiod	Subject ofinvestment	Investment effect	Expectedinvestment amount	Amountalreadyinvested		Futureinvestment
Network/Common	Upgrade/<br>New installation	Year ended December 31, 2022	Network, systems and others	Capacity increase and quality improvement; systems improvement	To be determined		1,124		—
Total					To be determined		1,124		—
B.	Future Investment Plan
---	---
Business	Expected investment amount		Expected investment for each year		Investment effect
---	---	---	---	---	---
	Asset type	Amount	2023	2024
Network/Common	Network, systems and others	To be determined	To be determined	To be determined	Upgrades to the existing services<br>and expanded provision of<br>network services including 5G
Total		To be determined	To be determined	To be determined
*	The Company indicated during the earnings conference call held on February 9, 2022 that the level of<br>capital expenditures for 2022 is expected to be similar to that of 2021.
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[Fixed-line Business]

A.	Investment in Progress and Future Investment Plan

(Unit: in billions of Won)

Purpose of<br><br><br>investment	Subject of<br><br><br>investment	Investment<br><br><br>period	Amountalreadyinvested		Future<br>investment	Investment effect
Coverage expansion, upgrade of media platform	Network, systems, Internet data center and others	Nine months ended September 30, 2022		419	To be determined	Securing subscriber network<br>and equipment; quality and<br>system improvement

6. Revenues

(Unit: in millions of Won)

Business	Sales type	Item
Wireless	Services	Mobile communication, wireless data, information communication		Export	104,572	143,149	152,518
				Domestic	9,553,139	12,575,324	12,195,445
				Subtotal	9,657,711	12,718,473	12,347,963
Fixed-line	Services	Fixed-line, high-speed Internet, data, lease line service		Export	127,795	139,846	127,618
				Domestic	2,729,669	3,537,860	3,304,600
				Subtotal	2,857,464	3,677,706	3,432,218
Other	Services	Commercial retail data broadcasting channel services		Export	—	—	—
				Domestic	395,337	352,406	307,566
				Subtotal	395,337	352,406	307,566
Total				Export	232,367	251,502	280,136
	Domestic		12,678,145		16,497,083	15,807,611
	Total		12,910,512		16,748,585	16,087,747

(Unit: in millions of Won)

For the nine months endedSeptember 30,2022
Total sales	10,775,291	3,659,772	419,523	14,854,586	(1,944,074	)	12,910,512
Internal sales	1,117,580	802,308	24,186	1,944,074	(1,944,074	)	—
External sales	9,657,711	2,857,464	395,337	12,910,512	—		12,910,512
Depreciation and amortization	2,055,412	736,489	16,090	2,807,991	(88,585	)	2,719,406
Operating profit (loss)	1,138,569	245,281	1,670	1,385,520	(27,951	)	1,357,569
Finance profit (loss)						****	(191,014	)
Gain from investments in associates and joint ventures						****	(75,909	)
Other non-operating profit(loss)						****	1,488
Profit before income tax						****	1,092,134

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 September 30, 2022 are as follows: ****

[SK Telecom]

(Unit: in millions of Won and thousands of USD)

Borrowing<br><br><br>date	Hedged item	Hedged risk	Contract type	Financial institution	Duration of<br>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 –<br>July 20, 2027
Dec. 21, 2017	Floating rate Korean Won denominated borrowings	Interest rate risk	Interest rate swap	The Korea Development Bank	Dec. 21, 2017 –<br>Dec. 21, 2022
Apr. 16, 2018	Fixed rate foreign currency denominated bonds	Foreign currency risk	Cross currency swap	The Export-Import Bank of Korea and three other banks	Apr. 16, 2018 –<br>Apr. 16, 2023
Aug. 13, 2018	Fixed rate foreign currency denominated bonds	Foreign currency risk	Cross currency swap	Citibank	Aug. 13, 2018 –<br>Aug. 13, 2023
Dec. 19, 2018	Floating rate Korean Won denominated borrowings	Interest rate risk	Interest rate swap	Credit Agricole CIB	Mar. 19, 2019 –<br>Dec. 14, 2023
Mar. 4, 2020	Floating rate foreign currency denominated bonds	Foreign currency and interest rate risks	Cross currency interest rate swap	Citibank	Mar. 4, 2020 –<br>June 4, 2025

[SK Broadband]

Borrowing<br><br><br>date	Hedged item	Hedged risk	Contract type	Financial institution	Duration of<br>contract
Dec. 21, 2017	Floating rate Korean Won denominated borrowings	Interest rate risk	Interest rate swap	The Korea Development Bank	Dec. 21, 2017 –<br>Dec. 21, 2022
Aug. 13, 2018	Non-guaranteed foreign<br><br><br>currency denominated bonds (face value of USD 300,000)	Foreign currency risk	Cross currency swap	Citibank Korea	Aug. 13, 2018 –<br>Aug. 13, 2023
Dec. 19, 2018	Floating rate Korean Won denominated borrowings	Interest rate risk	Interest rate swap	Credit Agricole CIB	Mar. 19, 2019 –<br>Dec. 14, 2023

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
Raw material		11		48		54		—
Labor		84,056		122,445		122,906		—
Depreciation		102,001		147,249		169,872		—
Commissioned service		26,086		55,917		35,939		—
Others		53,140		48,048		35,209		—
Total R&D costs		265,294		373,707		363,980		—
Government Subsidies		—		—		—		—
Accounting	Sales and administrative expenses	251,373		347,711		353,198		—
	Development expenses (Intangible assets)	13,921		25,996		10,782		—
R&D cost / sales amount ratio (Total R&D costs / Current sales<br>amount×100)		2.05	%	2.23	%	2.26	%	—

10. Other information relating to investment decisions

A.	Trademark 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 September 30, 2022, the Company held 3,298 Korean-registered patents and 1,502 foreign-registered patents. The Company holds 740 Korean-registered trademarks and owns intellectual property rights to its proprietary graphic design of the alphabet “T” representing its brand. The designed alphabet “T” is registered in all business categories for trademarks (total of 45). 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 September 30, 2022, SK Broadband held 287 Korean-registered patents and 86 foreign-registered patents (including those held jointly with other companies). It also holds 294 Korean-registered trademarks and 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 ICT” 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 IT 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 ICT 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 RE100 initiative in 2020. Since 2021, SK Broadband has participated in Korea Electrical Power Corporation’s renewable energy power purchase program, “Green Premium,” to implement RE100 and is considering the installation of additional solar power generation facilities to self-produce and use renewable energy.

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 September 30, 2022, December 31, 2021 and December 31, 2020 and for the nine months ended September 30, 2022 and the years ended December 31, 2021 and 2020. The Company’s consolidated financial statements as of September 30, 2022 and December 31, 2021 and for the nine months ended September 30, 2022 and 2021, which are prepared in accordance with K-IFRS, are attached hereto.

(Unit: in millions of Won except number of companies)
	As of<br>September 30, 2022			As of<br>December 31, 2021			As of<br>December 31, 2020
Assets
Current Assets		7,318,651			6,352,665			8,775,086
• Cash and Cash Equivalents		1,191,452			872,731			1,369,653
• Accounts Receivable – Trade, net		2,083,277			1,913,511			2,188,893
• Accounts Receivable – Other, net		569,220			548,362			979,044
• Others		3,474,702			3,018,061			4,237,496
Non-Current Assets		23,211,124			24,558,612			39,131,871
• Long-Term Investment Securities		1,314,148			1,715,078			1,648,837
• Investments in Associates and Joint Ventures		2,049,980			2,197,351			14,354,113
• Property and Equipment, net		12,445,644			12,871,259			13,377,077
• Goodwill		2,075,009			3,869,769			4,436,194
• Intangible Assets, net		3,361,437			2,072,493			3,357,524
• Others		1,964,906			1,832,662			1,958,126
Total Assets		30,529,775			30,911,277			47,906,957
Liabilities
Current Liabilities		7,428,963			6,960,435			8,177,967
Non-Current Liabilities		10,803,706			11,615,704			15,332,747
Total Liabilities		18,232,669			18,576,139			23,510,714
Equity
Equity Attributable to Owners of the Parent Company		11,505,328			11,579,346			23,743,894
Share Capital		30,493			30,493			44,639
Capital Surplus (Deficit) and Other Capital Adjustments		(11,538,160	)		(11,623,726	)		677,203
Retained Earnings		22,456,993			22,437,341			22,981,913
Reserves		556,002			735,238			40,139
Non-controlling Interests		791,778			755,792			652,349
Total Equity		12,297,106			12,335,138			24,396,243
Total Liabilities and Equity		30,529,775			30,911,277			47,906,957
(Unit: in millions of Won except per share data)
	For the nine monthsended September 30,2022			For the year endedDecember 31, 2021			For the year endedDecember 31, 2020
Operating Revenue		12,910,512			16,748,585			16,087,747
Operating Profit		1,357,569			1,387,162			1,248,578
Profit Before Income Tax		1,092,134			1,718,191			905,218
Profit for the Period		724,098			2,418,989			1,500,538
Profit for the Period Attributable to Owners of the Parent Company		699,743			2,407,523			1,504,352
Profit for the Period Attributable to Non-controlling<br>Interests		24,355			11,466			(3,814	)
Basic Earnings Per Share (Won)		3,159			7,191			4,093
Diluted Earnings Per Share (Won)		3,157			7,187			4,092
Total Number of Consolidated Subsidiaries		26			23			49

B.	Summary Financial Information (Separate)

Below is the summary separate financial information of the Company as of September 30, 2022, December 31, 2021 and December 31, 2020 and for the nine months ended September 30, 2022 and the years ended December 31, 2021 and 2020. The Company’s unaudited separate financial statements as of September 30, 2022 and December 31, 2021 and for the nine months ended September 30, 2022 and 2021, which are prepared in accordance with K-IFRS, are attached hereto.

(Unit: in millions of Won)

	As of September 30,2022			As of December 31,2021			As of December 31,2020
Assets
Current Assets		5,189,079			4,681,493			5,047,115
• Cash and Cash Equivalents		224,555			158,823			329,208
• Accounts Receivable – Trade, net		1,556,149			1,514,260			1,503,552
• Accounts Receivable – Other, net		523,024			520,956			434,713
• Others		2,885,351			2,487,454			2,779,642
Non-Current Assets		20,412,042			21,707,572			26,939,336
• Long-Term Investment Securities		1,042,988			1,476,361			983,688
• Investments in Subsidiaries and Associates		4,634,387			4,841,139			11,357,504
• Property and Equipment, net		8,978,508			9,318,408			9,157,548
• Goodwill		1,306,236			1,306,236			1,306,236
• Intangible Assets, net		2,745,288			3,203,330			2,665,083
• Others		1,704,635			1,562,098			1,469,277
Total Assets		25,601,121			26,389,065			31,986,451
Liabilities
Current Liabilities		5,438,125			5,426,477			5,076,404
Non-Current Liabilities		9,647,226			10,099,732			9,560,189
Total Liabilities		15,085,351			15,526,209			14,636,593
Equity
Share Capital		30,493			30,493			44,639
Capital Surplus and Other Capital Adjustments		(4,503,494	)		(4,576,271	)		289,134
Retained Earnings		14,839,615			14,770,618			16,684,640
Reserves		149,156			638,016			331,445
Total Equity		10,515,770			10,862,856			17,349,858
Total Liabilities and Equity		25,601,121			26,389,065			31,986,451
	For the nine monthsended September 30,2022			For the year endedDecember 31, 2021			For the year endedDecember 31, 2020
Operating Revenue		9,318,263			12,102,830			11,746,630
Operating Profit		1,126,516			1,144,323			1,023,067
Profit Before Income Tax		1,099,690			1,369,347			941,455
Profit for the Period		781,623			1,073,823			758,792
Basic Earnings Per Share (Won)		3,535			3,183			2,044
Diluted Earnings Per Share (Won)		3,533			3,181			2,044

2. Dividends and Others

Omitted in quarterly reports in accordance with applicable Korean disclosure rules.

3. Use of Direct Financing

A.	Use of Proceeds from Public Offerings

[SK Telecom]

(As of September 30,<br>2022)						(Unit: in millions of Won)
Category	Bond Series	Payment Date	Planned Use of Proceeds			Actual Use of Proceeds			Reasons forDifference
			Use	Amount		Use	Amount
Corporate bond	78th	January 14, 2020	Repayment of debt		60,000	Repayment of debt		60,000		—
Corporate bond	78th	January 14, 2020	Working capital		360,000	Working capital		360,000		—
Corporate bond	79th	October 19, 2020	Repayment of debt		290,000	Repayment of debt		290,000		—
Corporate bond	80th	January 15, 2021	Repayment of debt		310,000	Repayment of debt		310,000		—
Corporate bond	81st	October 28, 2021	Repayment of debt		200,000	Repayment of debt		200,000		—
Corporate bond	82nd	April 12, 2022	Repayment of debt		350,000	Repayment of debt		350,000		—
Corporate bond	83rd	August 10, 2022	Repayment of debt		395,000	Repayment of debt		395,000		—

[SK Broadband]

(As of September 30,<br>2022)						(Unit: in millions of Won)
Category	Bond Series	Payment Date	Planned Use of Proceeds			Actual Use of Proceeds			Reasons forDifference
			Use	Amount		Use	Amount
Corporate bond	Series 49-1	June 11, 2020	Repayment of debt		100,000	Repayment of debt		100,000		—
Corporate bond	Series 49-2	June 11, 2020	Repayment of debt		59,200	Repayment of debt		59,200		—
Corporate bond	Series 49-2	June 11, 2020	Working capital		40,800	Working capital		40,800		—
Corporate bond	Series 50	September 25, 2020	Repayment of debt		160,000	Repayment of debt		160,000		—
Corporate bond	Series 51	July 13, 2021	Repayment of debt		100,000	Repayment of debt		100,000		—
Corporate bond	Series 52-1	January 25, 2022	Repayment of debt		100,000	Repayment of debt		100,000		—
Corporate bond (green bond)	Series 52-2	January 25, 2022	Repayment of debt		50,000	Repayment of debt		50,000		—
*	Series 52-2 issued as of January 25, 2022 is an ESG bond (green<br>bond). Series 52-2 was issued for the purpose of repayment of funds raised to be invested in the conversion of hybrid fiber-coaxial (“HFC”) network to fiber-to-the-home (“FTTH”) network, which has a positive impact on the environment, and the proceeds from the bond offering were used for the intended<br>purpose. See the ESG bond report published in the socially responsible investment bond segment of the Korea Exchange for more information on the use of proceeds from this ESG bond offering.
---	---
B.	Use of Proceeds from Private Offerings
---	---

[SK Telecom]

None.

[SK Broadband]

None.

C.	Operation of Unused Proceeds

[SK Telecom]

None.

[SK Broadband]

None.

4. Other Matters Related to FinancialInformation

A.	Restatement of the Financial Statements

Pursuant to the resolutions of the Board of Directors and the General Meeting of Shareholders on June 10, 2021 and October 12, 2021, respectively, the Company conducted the Spin-off effective as of November 1, 2021. K-IFRS 1105 (Non-current assets held for sale and discontinued operations) was applied, and, accordingly, the consolidated statement of profit and loss for the three months and nine months ended September 30, 2021 was restated as such.

B.	Loss Allowance
(1)	Loss Allowance of Trade and Other Receivables
---	---
	(Unit: in millions of Won)
---	---	---	---	---	---	---	---
	For the nine months ended September 30, 2022
	Gross amount		Loss Allowance		Percentage
Accounts receivable – trade		2,342,578		247,737		10.6	%
Loans		148,156		45,721		30.9	%
Accounts receivable – other		832,478		46,186		5.5	%
Accrued income		2,066		0		0.0	%
Guarantee deposits		288,338		300		0.1	%
Total		3,613,616		339,944		9.4	%
	(Unit: in millions of Won)
	For the year ended December 31, 2021
	Gross amount		Loss Allowance		Percentage
Accounts receivable – trade		2,160,498		238,881		11.1	%
Loans		138,181		45,385		32.8	%
Accounts receivable – other		870,225		46,625		5.4	%
Accrued income		762		0		0.0	%
Guarantee deposits		278,759		0		0.0	%
Total		3,448,425		330,891		9.6	%
	(Unit: in millions of Won)
	For the year ended December 31, 2020
	Gross amount		Loss Allowance		Percentage
Accounts receivable – trade		2,478,851		264,498		10.7	%
Loans		182,721		45,024		24.6	%
Accounts receivable – other		1,366,922		55,075		4.0	%
Accrued income		3,418		166		4.9	%
Guarantee deposits		285,507		300		0.1	%
Total		4,317,419		365,063		8.5	%
(2)	Movements in Loss Allowance of Trade and Other Receivables
---	---
				(Unit: in millions of Won)
---	---	---	---	---	---	---	---	---	---
	For the nine monthsended September 30,2022			For the year endedDecember 31, 2021			For the year endedDecember 31, 2020
Beginning balance		330,891			365,063			346,399
Effect of change in accounting policy		—			—			—
Increase of loss allowance		25,329			37,547			59,184
Reversal of loss allowance		—			—			—
Write-offs		(16,671	)		(57,215	)		(57,575	)
Other		395			(14,504	)		17,055
Ending balance		339,944			330,891			365,063

(3)	Policies for Loss Allowance

The Company establishes loss allowances based on the likelihood of recoverability of trade and other receivables based on their aging at the end of the period and past customer default experience for the past three years. With respect to trade receivables relating to wireless telecommunications services, the Company considers the likelihood of recovery based on past customer default experience and the length of default in connection with the type of default (e.g., whether the customer’s service has been terminated or is continued). Consistent with customary practice, the Company writes off trade and other receivables for which the prescription period has passed or that are determined to be impossible or economically too costly to collect, including receivables that are less than Won 200,000 and more than six months overdue and receivables that have been determined to be the subject of identity theft.

(4)	Aging of Accounts Receivable
							(Unit: in millions of Won)
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	As of September 30, 2022
	Six months orless			From sixmonths to oneyear			From one yearto three years			More thanthree years			Total
Accounts receivable – general		2,109,633			48,633			137,483			46,828			2,342,578
Percentage		90.06	%		2.08	%		5.87	%		2.00	%		100.0	%
C.	Inventories
---	---
(1)	Detailed Categories of Inventories
---	---
							(Unit: in millions of Won)
---	---	---	---	---	---	---	---	---	---
Account Category	For the nine months<br>ended September 30,2022			For the year endedDecember 31, 2021			For the year endedDecember 31, 2020
Merchandise		187,117			201,126			162,196
Goods in transit		0			—			—
Other inventories		9,413			3,511			9,247
Total		196,530			204,637			171,443
Percentage of inventories to total assets [Inventories / Total assets]		0.64	%		0.66	%		0.36	%
Inventory turnover [Cost of sales / { ( Beginning balance of inventories + Ending balance of<br>inventories ) / 2}]		8.77			6.20			7.60
(2)	Reporting of Inventories
---	---

The Company holds handsets, ICT equipment for offline sales, etc. in inventory. The Company conducts physical due diligence of its inventories with external auditors at the end of each year.

D.	Fair Value Measurement

See notes 2 and 30 of the notes to the Company’s consolidated financial statements as of September 30, 2022 and December 31, 2021 and for the nine months ended September 30, 2022 and 2021 for more information.

E.	Key Terms of Debt Securities

[SK Telecom]

The following are key terms and conditions of bonds issued by the Company. The compliance status is as of the date of the latest financial statements including the audit opinion of the independent auditor applicable to the determination of compliance status, except for the compliance status of the restriction on changes of ownership structure, which is as of the end of the reporting period.

Name	Issue Date	Maturity Date	Principal Amount<br>(millions of Won)		Date of FiscalAgencyAgreement	Fiscal Agent
Unsecured Bond – Series 62-3	Aug. 28, 2012	Aug. 28, 2032		90,000	Aug. 22, 2012	Meritz Securities Co., Ltd.
Maintenance of Financial Ratio	Key Term	Debt ratio no greater than 300%
---	---	---
	Compliance Status	Compliant
Restriction on Liens	Key Term	The total amount of secured debt not to exceed 100% of share capital as of the end of the previous fiscal year
	Compliance Status	Compliant
Restriction on Disposition of Assets	Key Term	Disposal of assets per fiscal year not to exceed Won 2 trillion
	Compliance Status	Compliant
Restriction on Changes of Ownership Structure	Key Term	Not applicable
	Compliance Status	Not applicable
Submission of Compliance Certificate	Compliance Status	Submitted on August 18, 2022
Name	Issue Date	Maturity Date	Principal Amount<br>(millions of Won)		Date of FiscalAgency Agreement	Fiscal Agent
---	---	---	---	---	---	---
Unsecured Bond – Series 63-1	Apr. 23, 2013	Apr. 23, 2023		230,000	Apr. 17, 2013	Korea Securities Finance Corp.
Unsecured Bond – Series 63-2	Apr. 23, 2013	Apr. 23, 2033		130,000	Apr. 17, 2013	Korea Securities Finance Corp.
Unsecured Bond – Series 64-2	May 14, 2014	May 14, 2024		150,000	April 29, 2014	Korea Securities Finance Corp.
Unsecured Bond – Series 65-3	Oct. 28, 2014	Oct. 28, 2024		190,000	Oct. 16, 2014	Korea Securities Finance Corp.
Unsecured Bond – Series 66-2	Feb. 26, 2015	Feb. 26, 2025		150,000	Feb. 11, 2015	Korea Securities Finance Corp.
Unsecured Bond – Series 66-3	Feb. 26, 2015	Feb. 26, 2030		50,000	Feb. 11, 2015	Korea Securities Finance Corp.
Unsecured Bond – Series 67-2	July 17, 2015	July 17, 2025		70,000	July 9, 2015	Korea Securities Finance Corp.
Unsecured Bond – Series 67-3	July 17, 2015	July 17, 2030		90,000	July 9, 2015	Korea Securities Finance Corp.
Unsecured Bond – Series 68-2	Nov. 30, 2015	Nov. 30, 2025		100,000	Nov. 18, 2015	Korea Securities Finance Corp.
Unsecured Bond – Series 68-3	Nov. 30, 2015	Nov. 30, 2035		70,000	Nov. 18, 2015	Korea Securities Finance Corp.
Unsecured Bond – Series 69-3	Mar. 4, 2016	Mar. 4, 2026		90,000	Feb. 22, 2016	Korea Securities Finance Corp.
Unsecured Bond – Series 69-4	Mar. 4, 2016	Mar. 4, 2036		80,000	Feb. 22, 2016	Korea Securities Finance Corp.

Maintenance of Financial Ratio	Key Term	Debt ratio no greater than 300%
	Compliance Status	Compliant
Restriction on Liens	Key Term	The total amount of secured debt not to exceed 100% of share capital as of the end of the previous fiscal year
	Compliance Status	Compliant
Restriction on Disposition of Assets	Key Term	Disposal of assets per fiscal year not to exceed Won 2 trillion
	Compliance Status	Compliant
Restriction on Changes of Ownership Structure	Key Term	Not applicable
	Compliance Status	Not applicable
Submission of Compliance Certificate	Compliance Status	Submitted on August 18, 2022
Name	Issue Date	Maturity Date	Principal Amount<br>(millions of Won)		Date of FiscalAgency<br><br><br>Agreement	Fiscal Agent
---	---	---	---	---	---	---
Unsecured Bond – Series 70-3	June 3, 2016	June 3, 2026		120,000	May 24, 2016	Korea Securities Finance Corp.
Unsecured Bond – Series 70-4	June 3, 2016	June 3, 2031		50,000	May 24, 2016	Korea Securities Finance Corp.
Unsecured Bond – Series 71-3	Apr. 25, 2017	Apr. 25, 2027		100,000	Apr. 13, 2017	Korea Securities Finance Corp.
Unsecured Bond – Series 71-4	Apr. 25, 2017	Apr. 25, 2032		90,000	Apr. 13, 2017	Korea Securities Finance Corp.
Maintenance of Financial Ratio	Key Term	Debt ratio no greater than 300%
---	---	---
	Compliance Status	Compliant
Restriction on Liens	Key Term	The total amount of secured debt not to exceed 150% of share capital as of the end of the previous fiscal year
	Compliance Status	Compliant
Restriction on Disposition of Assets	Key Term	Disposal of assets per fiscal year not to exceed Won 5 trillion
	Compliance Status	Compliant
Restriction on Changes of Ownership Structure	Key Term	Not applicable
	Compliance Status	Not applicable
Submission of Compliance Certificate	Compliance Status	Submitted on August 18, 2022
Name	Issue Date	Maturity Date	Principal Amount<br>(millions of Won)		Date of FiscalAgency Agreement	Fiscal Agent
---	---	---	---	---	---	---
Unsecured Bond – Series 72-2	Nov. 10, 2017	Nov. 10, 2022		80,000	Oct. 31, 2017	Korea Securities Finance Corp.
Unsecured Bond – Series 72-3	Nov. 10, 2017	Nov. 10, 2027		100,000	Oct. 31, 2017	Korea Securities Finance Corp.
Unsecured Bond – Series 73-2	Feb. 20, 2018	Feb. 20, 2023		100,000	Feb. 6. 2018	Korea Securities Finance Corp.
Unsecured Bond – Series 73-3	Feb. 20, 2018	Feb. 20, 2028		200,000	Feb. 6. 2018	Korea Securities Finance Corp.
Unsecured Bond – Series 73-4	Feb. 20, 2018	Feb. 20, 2038		90,000	Feb. 6. 2018	Korea Securities Finance Corp.
Unsecured Bond – Series 74-2	Sept. 17, 2018	Sept. 17, 2023		150,000	Sept. 5, 2018	Korea Securities Finance Corp.
Unsecured Bond – Series 74-3	Sept. 17, 2018	Sept. 17, 2038		50,000	Sept. 5, 2018	Korea Securities Finance Corp.
Unsecured Bond – Series 75-2	Mar. 6, 2019	Mar. 6, 2024		120,000	Feb. 21, 2019	Korea Securities Finance Corp.
Unsecured Bond – Series 75-3	Mar. 6, 2019	Mar. 6, 2029		50,000	Feb. 21, 2019	Korea Securities Finance Corp.
Unsecured Bond – Series 75-4	Mar. 6, 2019	Mar. 6, 2039		50,000	Feb. 21, 2019	Korea Securities Finance Corp.

Maintenance of Financial Ratio	Key Term	Debt ratio no greater than 300%
	Compliance Status	Compliant
Restriction on Liens	Key Term	The total amount of secured debt not to exceed 150% of share capital as of the end of the previous fiscal year
	Compliance Status	Compliant
Restriction on Disposition of Assets	Key Term	Disposal of assets per fiscal year not to exceed 50% of total assets
	Compliance Status	Compliant
Restriction on Changes of Ownership Structure	Key Term	Restriction of cross-shareholding Exclusion from corporate group
	Compliance Status	Compliant
Submission of Compliance Certificate	Compliance Status	Submitted on August 18, 2022
Name	Issue Date	Maturity Date	Principal Amount<br>(millions of Won)		Date of FiscalAgency Agreement	Fiscal Agent
---	---	---	---	---	---	---
Unsecured Bond – Series 76-2	July 29, 2019	July 29, 2024		60,000	July 17, 2019	Korea Securities Finance Corp.
Unsecured Bond – Series 76-3	July 29, 2019	July 29, 2029		120,000	July 17, 2019	Korea Securities Finance Corp.
Unsecured Bond – Series 76-4	July 29, 2019	July 29, 2039		50,000	July 17, 2019	Korea Securities Finance Corp.
Unsecured Bond – Series 76-5	July 29, 2019	July 29, 2049		50,000	July 17, 2019	Korea Securities Finance Corp.
Maintenance of Financial Ratio	Key Term	Debt ratio no greater than 300%
---	---	---
	Compliance Status	Compliant
Restriction on Liens	Key Term	The total amount of secured debt not to exceed 150% of share capital as of the end of the previous fiscal year
	Compliance Status	Compliant
Restriction on Disposition of Assets	Key Term	Disposal of assets per fiscal year not to exceed 50% of total assets
	Compliance Status	Compliant
Restriction on Changes of Ownership Structure	Key Term	Restriction of cross-shareholding Exclusion from corporate group
	Compliance Status	Compliant
Submission of Compliance Certificate	Compliance Status	Submitted on August 18, 2022

Name	Issue Date	Maturity Date	Principal Amount<br>(millions of Won)		Date of FiscalAgencyAgreement	Fiscal Agent
Unsecured Bond – Series 77-1	Oct. 22, 2019	Oct. 21, 2022		230,000	Oct. 10, 2019	Korea Securities Finance Corp.
Unsecured Bond – Series 77-2	Oct. 22, 2019	Oct. 22, 2024		70,000	Oct. 10, 2019	Korea Securities Finance Corp.
Unsecured Bond – Series 77-3	Oct. 22, 2019	Oct. 22, 2029		40,000	Oct. 10, 2019	Korea Securities Finance Corp.
Unsecured Bond – Series 77-4	Oct. 22, 2019	Oct. 22, 2039		60,000	Oct. 10, 2019	Korea Securities Finance Corp.
Maintenance of Financial Ratio	Key Term	Debt ratio no greater than 300%
---	---	---
	Compliance Status	Compliant
Restriction on Liens	Key Term	The total amount of secured debt not to exceed 150% of share capital as of the end of the previous fiscal year
	Compliance Status	Compliant
Restriction on Disposition of Assets	Key Term	Disposal of assets per fiscal year not to exceed 50% of total assets
	Compliance Status	Compliant
Restriction on Changes of Ownership Structure	Key Term	Restriction of cross-shareholding<br> <br>Exclusion<br>from corporate group
	Compliance Status	Compliant
Submission of Compliance Certificate	Compliance Status	Submitted on August 18, 2022
Name	Issue Date	Maturity Date	Principal Amount<br>(millions of Won)		Date of FiscalAgencyAgreement	Fiscal Agent
---	---	---	---	---	---	---
Unsecured Bond – Series 78-1	Jan. 14, 2020	Jan. 13, 2023		170,000	Dec. 31, 2019	Korea Securities Finance Corp.
Unsecured Bond – Series 78-2	Jan. 14, 2020	Jan. 14, 2025		130,000	Dec. 31, 2019	Korea Securities Finance Corp.
Unsecured Bond – Series 78-3	Jan. 14, 2020	Jan. 14, 2030		50,000	Dec. 31, 2019	Korea Securities Finance Corp.
Unsecured Bond – Series 78-4	Jan. 14, 2020	Jan. 14, 2040		70,000	Dec. 31, 2019	Korea Securities Finance Corp.
Maintenance of Financial Ratio	Key Term	Debt ratio no greater than 300%
---	---	---
	Compliance Status	Compliant
Restriction on Liens	Key Term	The total amount of secured debt not to exceed 150% of share capital as of the end of the previous fiscal year
	Compliance Status	Compliant
Restriction on Disposition of Assets	Key Term	Disposal of assets per fiscal year not to exceed 50% of total assets
	Compliance Status	Compliant
Restriction on Changes of Ownership Structure	Key Term	Restriction of cross-shareholding<br> <br>Exclusion<br>from corporate group
	Compliance Status	Compliant
Submission of Compliance Certificate	Compliance Status	Submitted on August 18, 2022

Name	Issue Date	Maturity Date	Principal Amount(millions of Won)		Date of FiscalAgencyAgreement	Fiscal Agent
Unsecured Bond – Series 79-1	Oct. 19, 2020	Oct. 19, 2025		140,000	Oct. 6, 2020	Korea Securities Finance Corp.
Unsecured Bond – Series 79-2	Oct. 19, 2020	Oct. 19, 2030		40,000	Oct. 6, 2020	Korea Securities Finance Corp.
Unsecured Bond – Series 79-3	Oct. 19, 2020	Oct. 19, 2040		110,000	Oct. 6, 2020	Korea Securities Finance Corp.
Maintenance of Financial Ratio	Key Term	Debt ratio no greater than 300%
---	---	---
	Compliance Status	Compliant
Restriction on Liens	Key Term	The total amount of secured debt not to exceed 150% of share capital as of the end of the previous fiscal year
	Compliance Status	Compliant
Restriction on Disposition of Assets	Key Term	Disposal of assets per fiscal year not to exceed 50% of total assets
	Compliance Status	Compliant
Restriction on Changes of Ownership Structure	Key Term	Restriction of cross-shareholding<br> <br>Exclusion<br>from corporate group
	Compliance Status	Compliant
Submission of Compliance Certificate	Compliance Status	Submitted on August 18, 2022
Name	Issue Date	Maturity Date	Principal Amount(millions of Won)		Date of FiscalAgencyAgreement	Fiscal Agent
---	---	---	---	---	---	---
Unsecured Bond – Series 80-1	Jan. 15, 2021	Jan. 14, 2024		80,000	Jan. 5, 2021	Korea Securities Finance Corp.
Unsecured Bond – Series 80-2	Jan. 15, 2021	Jan. 15, 2026		80,000	Jan. 5, 2021	Korea Securities Finance Corp.
Unsecured Bond – Series 80-3	Jan. 15, 2021	Jan. 15, 2031		50,000	Jan. 5, 2021	Korea Securities Finance Corp.
Unsecured Bond – Series 80-4	Jan. 15, 2021	Jan. 15, 2041		100,000	Jan. 5, 2021	Korea Securities Finance Corp.
Maintenance of Financial Ratio	Key Term	Debt ratio no greater than 300%
---	---	---
	Compliance Status	Compliant
Restriction on Liens	Key Term	The total amount of secured debt not to exceed 150% of share capital as of the end of the previous fiscal year
	Compliance Status	Compliant
Restriction on Disposition of Assets	Key Term	Disposal of assets per fiscal year not to exceed 50% of total assets
	Compliance Status	Compliant
Restriction on Changes of Ownership Structure	Key Term	Restriction of cross-shareholding<br> <br>Exclusion<br>from corporate group
	Compliance Status	Compliant
Submission of Compliance Certificate	Compliance Status	Submitted on August 18, 2022
Name	Issue Date	Maturity Date	Principal Amount(millions of Won)		Date of FiscalAgencyAgreement	Fiscal Agent
---	---	---	---	---	---	---
Unsecured Bond – Series 81-1	Oct. 28, 2021	Oct. 28, 2024		90,000	Oct. 18, 2021	Korea Securities Finance Corp.
Unsecured Bond – Series 81-2	Oct. 28, 2021	Oct. 28, 2026		70,000	Oct. 18, 2021	Korea Securities Finance Corp.
Unsecured Bond – Series 81-3	Oct. 28, 2021	Oct. 28, 2041		40,000	Oct. 18, 2021	Korea Securities Finance Corp.

Maintenance of Financial Ratio	Key Term	Debt ratio no greater than 300%
	Compliance Status	Compliant
Restriction on Liens	Key Term	The total amount of secured debt not to exceed 150% of share capital as of the end of the previous fiscal year
	Compliance Status	Compliant
Restriction on Disposition of Assets	Key Term	Disposal of assets per fiscal year not to exceed 50% of total assets
	Compliance Status	Compliant
Restriction on Changes of Ownership Structure	Key Term	Restriction of cross-shareholding<br> <br>Exclusion<br>from corporate group
	Compliance Status	Compliant
Submission of Compliance Certificate	Compliance Status	Submitted on August 18, 2022
Name	Issue Date	Maturity Date	Principal Amount(millions of Won)		Date of FiscalAgencyAgreement	Fiscal Agent
---	---	---	---	---	---	---
Unsecured Bond – Series 82-1	April 12, 2022	April 12, 2025		240,000	March 31, 2022	Korea Securities Finance Corp.
Unsecured Bond – Series 82-2	April 12, 2022	April 12, 2027		70,000	March 31, 2022	Korea Securities Finance Corp.
Unsecured Bond – Series 82-3	April 12, 2022	April 12, 2042		40,000	March 31, 2022	Korea Securities Finance Corp.
Maintenance of Financial Ratio	Key Term	Debt ratio no greater than 300%
---	---	---
	Compliance Status	Compliant
Restriction on Liens	Key Term	The total amount of secured debt not to exceed 150% of share capital as of the end of the previous fiscal year
	Compliance Status	Compliant
Restriction on Disposition of Assets	Key Term	Disposal of assets per fiscal year not to exceed 50% of total assets
	Compliance Status	Compliant
Restriction on Changes of Ownership Structure	Key Term	Restriction of cross-shareholding<br> <br>Exclusion<br>from corporate group
	Compliance Status	Compliant
Submission of Compliance Certificate	Compliance Status	Submitted on August 18, 2022
Name	Issue Date	Maturity Date	Principal Amount(millions of Won)		Date of FiscalAgencyAgreement	Fiscal Agent
---	---	---	---	---	---	---
Unsecured Bond – Series 83-1	August 10, 2022	August 8, 2025		300,000	July 29, 2022	Korea Securities Finance Corp.
Unsecured Bond – Series 83-2	August10, 2022	August 10, 2027		95,000	July 29, 2022	Korea Securities Finance Corp.
Maintenance of Financial Ratio	Key Term	Debt ratio no greater than 300%
---	---	---
	Compliance Status	Compliant
Restriction on Liens	Key Term	The total amount of secured debt not to exceed 150% of share capital as of the end of the previous fiscal year
	Compliance Status	Compliant
Restriction on Disposition of Assets	Key Term	Disposal of assets per fiscal year not to exceed 50% of total assets
	Compliance Status	Compliant
Restriction on Changes of Ownership Structure	Key Term	Restriction of cross-shareholding<br> <br>Exclusion<br>from corporate group
	Compliance Status	Compliant
Submission of Compliance Certificate	Compliance Status	To be submitted following the filing of the next annual business report

[SK Broadband]

The following are key terms and conditions of bonds issued by SK Broadband.

Name	Issue Date		Maturity Date		Principal Amount(millions of Won)			Fiscal Agent
Unsecured Bond – Series 45-2		Oct. 11, 2017		Oct. 11, 2022		140,000	Sept. 20, 2017	Korea Securities Finance Corp.
Maintenance of Financial Ratio	Key Term	Debt ratio no greater than 400%
---	---	---
	Compliance Status	Compliant
Restriction on Liens	Key Term	The total amount of secured debt not to exceed 200% of share capital as of the end of the previous fiscal year
	Compliance Status	Compliant
Restriction on Disposition of Assets	Key Term	Disposal of assets per fiscal year not to exceed 70% of total assets
	Compliance Status	Compliant
Restriction on Changes of Ownership Structure	Key Term	—
	Compliance Status	—
Submission of Compliance Certificate	Compliance Status	Submitted on September 1, 2022
Name	Issue Date	Maturity Date	Principal Amount(millions of Won)		Date of FiscalAgencyAgreement	Fiscal Agent
---	---	---	---	---	---	---
Unsecured Bond – Series 46-2	Feb. 1, 2018	Feb. 1, 2023		80,000	Jan. 19, 2018	Korea Securities Finance Corp.
Unsecured Bond – Series 47-2	Mar. 26, 2019	Mar. 26, 2024		160,000	Mar. 14, 2019	Korea Securities Finance Corp.
Unsecured Bond – Series 48-2	Sept. 24, 2019	Sept. 24, 2024		100,000	Sept. 10, 2019	Korea Securities Finance Corp.
Unsecured Bond – Series 48-3	Sept. 24, 2019	Sept. 23, 2026		50,000	Sept. 10, 2019	Korea Securities Finance Corp.
Unsecured Bond – Series 49-1	June 11, 2020	June 9, 2023		100,000	June 1, 2020	Korea Securities Finance Corp.
Unsecured Bond – Series 49-2	June 11, 2020	June 11, 2025		100,000	June 1, 2020	Korea Securities Finance Corp.
Unsecured Bond – Series 50	Sept. 25, 2020	Sept. 25, 2025		160,000	Sept. 15, 2020	Korea Securities Finance Corp.
Unsecured Bond – Series 51	July 13, 2021	July 12, 2024		100,000	July 1, 2021	Korea Securities Finance Corp.
Unsecured Bond – Series 52-1	Jan. 25, 2022	Jan. 24, 2025		100,000	Jan. 13, 2022	Korea Securities Finance Corp.
Unsecured Bond – Series 52-2	Jan. 25, 2022	Jan. 25, 2032		50,000	Jan. 13, 2022	Korea Securities Finance Corp.
Total	—	—		1,000,000	—	—

Maintenance of Financial Ratio	Key Term	Debt ratio no greater than 400%
	Compliance Status	Compliant
Restriction on Liens	Key Term	The total amount of secured debt not to exceed 200% of share capital as of the end of the previous fiscal year
	Compliance Status	Compliant
Restriction on Disposition of Assets	Key Term	Disposal of assets per fiscal year not to exceed 70% of total assets
	Compliance Status	Compliant
Restriction on Changes of Ownership Structure	Key Term	Restriction on changes of ownership structure
	Compliance Status	Compliant
Submission of Compliance Certificate	Compliance Status	Submitted on September 1, 2022
*	Beginning with Series 47, the maintenance of financial ratio requirement has changed to a consolidated basis.<br>
---	---
IV.	MANAGEMENT’S DISCUSSION AND ANALYSIS
---	---

Omitted in quarterly reports in accordance with applicable Korean disclosure rules.

V.	AUDITOR’S OPINION

1. Independent Auditors and Audit Opinions

A.	Independent Auditor and Audit Opinion (Separate and Consolidated)
Period	Independent auditor	Audit opinion	Emphasis of Matter	Critical Audit Matters
---	---	---	---	---
Nine months ended<br>September 30,<br>2022	Ernst & Young Han Young	—	Disclosure of discontinued operations in the consolidated financial statements for the nine months ended September 30, 2021 included for comparison purpose	N/A
Year ended<br>December 31, 2021	KPMG Samjong Accounting Corp.	Unqualified	Spin-off and disclosure of discontinued operations in the consolidated financial statements	Revenue recognition; assessment of impairment of cash-generating unit of fixed-line telecommunication services
Year ended<br>December 31, 2020	KPMG Samjong Accounting Corp.	Unqualified	Retroactive application of change in accounting policy related to change to determination of lease period	Revenue recognition; assessment of impairment of cash-generating unit of security services, assessment of fair value of customer relationship

Note: All consolidated subsidiaries of the Company that are subject to audits and whose audits have been completed received unqualified audit opinions.

*	The audit opinion is on the consolidated and separate financial statements.
B.	Audit Services Contracts with Independent Auditors
---	---
(Unit: in millions of Won except number of hours)
---	---	---	---	---	---	---	---	---	---	---
Period	Auditors	Contents	Audit Contract				ActualPerformance
			Fee		Totalnumberof hours		Fee		Totalnumberof<br>hours
Nine months ended September 30, 2022	Ernst & Young Han Young	Quarterly and semi-annual review		2,700		24,100		1,348		12,036
		Separate financial statements audit
		Consolidated financial statements audit
		English financial statements review and other audit task
		Internal accounting system audit
Year ended December 31, 2021	KPMG Samjong Accounting Corp.	Quarterly and semi-annual review		2,450		24,500		2,450		24,500
		Separate financial statements audit
		Consolidated financial statements audit
		English financial statements review and other audit task
		Internal accounting system audit
Year ended December 31, 2020	KPMG Samjong Accounting Corp.	Quarterly and semi-annual review		2,360		23,600		2,360		23,600
		Separate financial statements audit
		Consolidated financial statements audit
		English financial statements review and other audit task
		Internal accounting system audit

C.	Non-Audit Services Contracts with Independent Auditors
(Unit: in millions of Won)
---	---	---	---	---
Period	Contract date	Service provided	Service duration	Fee
Nine months ended September 30, 2022	—	—	—	—
Year ended December 31, 2021	May 17, 2021	Confirmation of financial information in connection with frequency reallocation application	May 17, 2021 – May 24, 2021	2
	May 26, 2021	Audit and review of financial statements of the newly established company and subsidiaries involved in the Spin-off	May 26, 2021 – July 28, 2021	1,143
	August 5, 2021	Review of carve-out financial statements in connection with the Spin-off	August 5, 2021 – August 13, 2021	10
Year ended December 31, 2020	July 23, 2020	Confirmation of financial information	July 23, 2020 – July 30, 2020	30
	December 8, 2020	Confirmation of financial information	December 8, 2020 – December 10,<br>2020	30
	December 30, 2020	Consulting services for new business group model research project	December 31, 2020 – February 12,<br>2021	90
D.	Discussions between Audit Committee and Independent Auditors
---	---
Date	Attendance	Method	Key Matters Discussed
---	---	---	---
February 22, 2022	Audit Committee: 4<br><br><br>Independent Auditor: 1	In-person	Report on 2021 critical audit matters and results of audit of financial statements; report on results of 2021 internal accounting<br>management system audit
April 27, 2022	Audit Committee: 4<br><br><br>Independent Auditor: 1	In-person	Report on 2021 Public Company Accounting Oversight Board audit results; report on 2022<br>audit plan and selection of critical audit matters
July 27, 2022	Audit Committee: 4<br><br><br>Independent Auditor: 1	In-person	Report on results of external auditors’ 2022<br>semi-annual review

VI.	CORPORATE ORGANIZATION INCLUDING BOARD OF DIRECTORS

1. Board of Directors

2. Audit System

3. Shareholders’ Exercise of Voting Rights

VII.	SHAREHOLDERS

1. Shareholdings of the Largest Shareholder and Related Persons

A.	Shareholdings of the Largest Shareholder and Related Persons
(As of September 30, 2022)			(Unit: in shares and percentages)
---	---	---	---	---	---	---	---	---	---	---
Name	Relationship	Type of share	Number of shares owned and ownership ratio
			Beginning of Period				End of Period
			Number ofshares		Ownershipratio		Number ofshares		Ownershipratio
SK Inc.	Largest Shareholder	Common share		65,668,397		30.01		65,668,397		30.01
Tae Won Chey	Officer of the Company	Common share		303		0.00		303		0.00
Dong Hyun Jang	Officer of affiliated company	Common share		762		0.00		762		0.00
Jung Ho Park	Officer of the Company	Common share		10,932		0.00		21,530		0.01
Young Sang Ryu	Officer of the Company	Common share		3,340		0.00		7,340		0.00
Yong-Hak Kim	Officer of the Company	Common share		303		0.00		1,711		0.00
Seok-Dong Kim	Officer of the Company	Common share		303		0.00		1,447		0.00
Youngmin Yoon	Officer of the Company	Common share		303		0.00		1,447		0.00
Jung Ho Ahn	Officer of the Company	Common share		303		0.00		1,447		0.00
Junmo Kim	Officer of the Company	Common share		303		0.00		1,447		0.00
Kyu-nam Choi	Officer of the Company	Common share		455		0.00		455		0.00
Poong Young Yoon	Officer of affiliated company	Common share		2,733		0.00		2,733		0.00
Jong Ryeol Kang	Officer of the Company	Common share		0		0.00		3,484		0.00
Total		Common share		65,688,437		30.02		65,712,503		30.03

B.	Overview of the Largest Shareholder

As of September 30, 2022, the Company’s largest shareholder was SK Inc. SK Inc. was established on April 13, 1991 and was made public on the securities market on November 11, 2009 under the identification code “034730.” SK Inc. is located at 26, Jong-ro, Jongno-gu, Seoul, Korea. SK Inc.’s telephone number is +82-2-2121-5114 and its website is https://www.sk-inc.com/.

VIII.	EMPLOYEES AND DIRECTORS

1. Directors and Officers

A.	Directors
(As of September 30, 2022)
---	---	---	---	---	---	---
Name	Gender	Date of Birth	Position	Professional Background	Duration ofTerm	End ofCurrentTerm
Young Sang Ryu	Male	May 1970	Chief Executive Officer; Representative Director; Inside Director	Former Head, SK Telecom MNO business	4 years and 7 months	Mar. 24, 2024
Jong Ryeol Kang	Male	Oct. 1964	Representative Director; Head of ICT Infrastructure Center (CSPO); Inside Director	Former Head, Corporate Culture Division	7 months	Mar. 24, 2025
Kyu-Nam Choi	Male	Apr. 1964	Non-executive Director	Head of Investment 1 Team; Head of Environment Task Force; Former Head of Future Business Team, SUPEX Council	12 months	Mar. 24, 2024
Yong-Hak Kim	Male	Jan. 1953	Independent Director	Former President (Professor Emeritus), Yonsei University	2 years and 7 months	Mar. 25, 2023
Seok-Dong Kim	Male	May 1953	Independent Director	Former Chairman, Financial Services Commission	3 years and 7 months	Mar. 24, 2025
Jung Ho Ahn	Male	Feb. 1978	Independent Director	Professor, Graduate School of Convergence Science and Technology at Seoul National University	5 years and 7 months	Mar. 25, 2023
Youngmin Yoon	Female	Dec. 1963	Independent Director	Professor, Department of Media and Communication at Korea University	4 years and 7 months	Mar. 24, 2024
Junmo Kim	Male	Sep. 1976	Independent Director	Professor, Department of Electrical Engineering at Korea Advanced Institute of Science and Technology	2 years and 7 months	Mar. 25, 2023

2. Compensation of Directors and Officers

IX.	RELATED PARTY TRANSACTIONS

1. Line of Credit Extended to the Largest Shareholder and Related Parties

None.

2. Transfer of Assets to/from theLargest Shareholder and Related Parties and Other Transactions

Purchase and Dispositions of Investments

(As of September 30, 2022)					(Unit: in millions of Won)
Name (Corporate name)	Relationship	Purchase and Dispositions ofInvestments									Remarks
		Type ofInvestment	Transaction Details
			Beginning		Increase		Decrease		Ending
Atlas Investment	Subsidiary	Shares		155,656		3,744		—		159,400	Capital increase
SAPEON Korea Inc.	Subsidiary	Shares		—		19,108		19,108		—	New acquisition/disposal
SAPEON Inc.	Subsidiary	Shares		—		48,456		—		48,456	New acquisition
SK Square (listed)	Subsidiary	Shares		51,371		—		51,371		—	Disposal

3. Transactions with the Largest Shareholder and Related Parties

(Unit: in millions of Won)
Counterparty	RelationshipwithCounterparty	Type	Transaction Period	Transaction Details	Transaction Amount
PS&Marketing	Affiliate	Purchase	January 1, 2022 – September 30, 2022	Marketing fees, etc.	927,265
X.	OTHER INFORMATION RELATING TO THE PROTECTION OF INVESTORS
---	---

1. Developments in the Items Mentioned in Prior Reports on Important Business Matters

On February 9, 2022, the Company announced its strategic direction and sales target in the “Future Business and Management Plan” fair disclosure report. See “II.1. Business Overview” for more information on business progress and “III. Financial Information” for more information on business performance.

On August 16, 2022, the Company disclosed that the effective date of SK Broadband’s merger with Broadband Nowon Co., Ltd. was changed from November 7, 2022 to October 5, 2022. Such merger has subsequently been completed.

2. Contingent Liabilities

A.	Legal Proceedings

[SK Telecom]

As of September 30, 2022, the Company is involved in various pending legal proceedings and the provisions recognized for these proceedings are not material. The management of the Company has determined that there are currently no present obligations in connection with proceedings for which no provision has been recognized. The management has also determined that the outcome of these proceedings will not have a significant impact on the Company’s financial position and operating performance.

[SK Broadband]

As of September 30, 2022, there were 32 pending lawsuits against SK Broadband (aggregate amount of claims of Won 10,781 million), and provisions in the amount of Won 600 million in connection with such lawsuits were recognized.

B.	Other Contingent Liabilities and Guarantees for Payment

[SK Telecom]

None.

[SK Broadband]

As of September 30, 2022, SK Broadband has entered into revolving credit facilities with a limit of Won 186 billion with three financial institutions including Hana Bank in relation to its loans.

In connection with public offerings of notes, SK Broadband is subject to certain restrictions with respect to its debt ratio, third party payment guarantees and other limitations on liens.

SK Broadband has provided “geun” mortgage amounting to Won 1,513 million on certain of its buildings, including Gyeyang Guksa, in connection with leasing of such buildings.

SK Broadband has entered into a leased line contract and a resale contract for fixed-line telecommunication services with SK Telecom.

As of September 30, 2022, SK Broadband has been provided with the following material payment guarantees by other parties.

(Unit: in millions of Won)
Guarantor	Guarantee Details	Guaranteed Amount
Seoul Guarantee Insurance Company	Contract and defect performance guarantee		34,980
Korea Content Financial Cooperative	Contract performance guarantee		34,760

[SK Stoa]

As of September 30, 2022, SK Stoa has been provided with the following material payment guarantees by other parties.

(Unit: in millions of Won)
Guarantor	Guarantee Details	Guaranteed Amount
Kookmin Bank	Performance guarantee		1,540
Kookmin Bank	Revolving credit		10,000

[SK M&Service]

As of September 30, 2022, SK M&Service has entered into the following credit facilities with financial institutions.

(Unit: billions of Won)
Financial Institution	Credit Limit		Details
KEB Hana Bank		10	Working capital loan
Industrial Bank of Korea		15	Working capital loan
Shinhan Bank		1	Payment guarantee

As of September 30, 2022, SK M&Service has been provided with the following material payment guarantees by other parties.

(Unit: in millions of Won)
Guarantor	Guarantee Details	Guaranteed Amount
41 companies including Korea Tourism Organization	Transaction performance guarantee		1,788
SK Energy	Transaction performance guarantee		700

[SK Telink]

As of September 30, 2022, SK Telink provided the following material payment guarantee to another party.

(Unit: in millions of Won)
Guarantor	Counterparty	Guaranteed Amount		Guarantee Details
SK Telink	STARNET Systems, etc.		440	Contract performance guarantee; provisional seize of bonds, etc.

As of September 30, 2022, SK Telink has been provided with the following material payment guarantees by other parties.

(Unit: in millions of Won)
Guarantor	Guarantee Details	Guaranteed Amount
Seoul Guarantee Insurance Company	Contract performance guarantee		1,372

[SK Communications]

As of September 30, 2022, SK Communications provided the following material payment guarantee to another party.

(Unit: in millions of Won)
Guarantor	Counterparty	Guaranteed Amount		Guarantee Details
SK Communications	E-payment purchaser or right holder		650	Protect funds of users of electronic financial transactions

[PS&Marketing]

As of September 30, 2022, PS&Marketing has been provided with the following material payment guarantees by other parties.

(Unit: in millions of Won)
Guarantor	Guarantee Details	Guaranteed Amount
Seoul Guarantee Insurance Company	Performance guarantee		1,640

[Home&Service]

As of September 30, 2022, Home&Service has been provided with the following material payment guarantees by other parties.

(Unit: in millions of Won)
Guarantor	Guarantee Details	Guaranteed Amount
Seoul Guarantee Insurance Company	Guarantee of specified liabilities		2

[Service Top]

As of September 30, 2022, Service Top has been provided with the following material payment guarantees by other parties.

(Unit: in millions of Won)
Guarantor	Guarantee Details	Guaranteed Amount
Seoul Guarantee Insurance Company	Contract performance guarantee		15

3. Status of Sanctions, etc.

4. Material Events Subsequent to the Reporting Period

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

SK Telecom Co., Ltd.
(Registrant)
By: /s/ Heejun Chung
(Signature)
Name:	Heejun Chung
---	---
Title:	Senior Vice President

Date: DECEMBER 8, 2022

SK TELECOM CO., LTD. AND ITS SUBSIDIARIES

Interim Consolidated Financial Statements

For the Nine-Month Period ended September 30, 2022

(With the Independent Auditor’s Review Report Thereon)

Contents

	Page
Report on review of interim consolidated financialstatements
Interim Consolidated Financial Statements
Interim Consolidated Statements of Financial Position		1
Interim Consolidated Statements of Profit or Loss		3
Interim Consolidated Statements of Comprehensive Income		4
Interim Consolidated Statements of Changes in Equity		5
Interim Consolidated Statements of Cash Flows		6
Notes to the Interim Consolidated Financial Statements		8

Ernst & Young Han Young<br> <br>Taeyoung<br>Building, 111, Yeouigongwon-ro,<br> <br>Yeongdeungpo-gu, Seoul 07241 Korea<br> <br><br><br><br>Tel: +82 2 3787 6600<br> <br>Fax: +82 2 783 5890<br><br><br>ey.com/kr

Report on review of interim consolidated financial statements

(English Translation of a Report Originally Issued in Korean)

The Shareholders and Board of Directors

SK TelecomCo., Ltd.

We have reviewed the accompanying interim consolidated financial statements of SK Telecom Co., Ltd. and its subsidiaries (the “Group”), which comprise the interim consolidated statement of financial position as of September 30, 2022, and the related interim consolidated statements of profit or loss, interim consolidated statements of comprehensive income for the three-month and nine-month periods ended September 30, 2022, interim consolidated statement of changes in equity and interim consolidated statement of cash flows for the nine-month period then ended, and a summary of significant accounting policies and other explanatory information.

Management’s responsibility for the interim consolidated financial statements

Management is responsible for the preparation and fair presentation of these interim consolidated financial statements in accordance with International Financial Reporting Standards as adopted by the Republic of Korea (“KIFRS”) 1034 Interim Financial Reporting, and for such internal controls as management determines is necessary to enable the preparation of interim consolidated financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s responsibility

Our responsibility is to express a conclusion on these interim consolidated financial statements based on our review.

We conducted our review in accordance with the Review Standards for Quarterly and Semiannual Financial Statements established by the Securities and Futures Commission of the Republic of Korea. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Korean Standards on Auditing (“KSAs”) and, consequently, does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim consolidated financial statements are not prepared fairly, in all material respects, in accordance with KIFRS 1034 Interim Financial Reporting.

Emphasis of matter

We draw to attention to Notes 3 and 36, which describes that pursuant to the resolution of shareholders’ meeting held on October 12, 2021, SK Telecom Co., Ltd. completed the spin-off of certain businesses as of November 1, 2021. The businesses spun off are presented as discontinued operations, and the comparative interim consolidated statements of profit or loss for the three-month and nine-month periods ended September 30, 2021 and related notes have been restated to present the discontinued operations separately from continuing operations.

LOGO

Other matters

The interim consolidated statements of profit or loss, interim consolidated statements of comprehensive income for the three-month and nine-month period ended September 30, 2021, interim consolidated statement of changes in equity and interim consolidated statement of cash flows for the nine-month period ended September 30, 2021, prepared in accordance with KIFRS 1034 and presented for comparative purposes, have been reviewed by KPMG Samjong Accounting Corp. whose review report dated November 12, 2021 expressed an unqualified review conclusion. The accompanying interim consolidated statements of profit or loss, interim consolidated statements of comprehensive income for the three-month and nine-month period ended September 30, 2021, interim consolidated statement of changes in equity and interim consolidated statement of cash flows for the nine-month period ended September 30, 2021 presented for comparative purposes, except for the adjustments related to the discontinued operations as described in Notes 3 and 36 to the accompanying interim consolidated financial statements, are not different, in all material respects, from the interim consolidated statements of profit or loss, interim consolidated statements of comprehensive income for the three-month and nine-month period ended September 30, 2021, interim consolidated statement of changes in equity and interim consolidated statement of cash flows for the nine-month period ended September 30, 2021 reviewed by KPMG Samjong Accounting Corp.

Moreover, the consolidated statement of financial position as of December 31, 2021, and the related consolidated statement of profit or loss, consolidated statement of comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the year then ended which have been audited by KPMG Samjong Accounting Corp., in accordance with KSAs (not presented herein), whose report dated March 10, 2022 expressed an unqualified opinion. The accompanying consolidated statement of financial position as of December 31, 2021 presented for comparative purposes, is not different, in all material respects, from the above audited consolidated statement of financial position.

November 11, 2022

This report is effective as of November 11, 2022, the independent auditor’s review report date. Accordingly, certain material subsequent events or<br>circumstances may have occurred during the period from the independent auditor’s review report date to the time this review report is used. Such events and circumstances could significantly affect the accompanying interim consolidated financial<br>statements and may result in modification to this review report.

SK TELECOM CO., LTD. AND ITS SUBSIDIARIES

INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2022 AND DECEMBER 31, 2021 AND

FOR THE THREE-MONTH AND NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2022 AND 2021

The accompanying interim consolidated financial statements, including all footnote disclosures, were prepared by, and are the responsibility of, the Group.

Ryu, Young-Sang

Chief Executive Officer

SK TELECOM CO., LTD.

SK TELECOM CO., LTD. and its Subsidiaries

Interim Consolidated Statements of Financial Position

As of September 30, 2022 and December 31, 2021

(In millions of won)		September 30, 2022<br>(Unaudited)		December 31, 2021
Assets
Current Assets:
Cash and cash equivalents	29,30	~~W~~	1,191,452		872,731
Short-term financial instruments	29,30		647,535		508,677
Short-term investment securities	9,29,30		—		5,010
Accounts receivable – trade, net	5,29,30,31		2,083,277		1,913,511
Short-term loans, net	5,29,30		75,377		70,817
Accounts receivable – other, net	5,29,30,31,32		569,220		548,362
Contract assets	7,30		81,310		76,698
Prepaid expenses	6		1,994,419		1,987,503
Current tax assets	27		51		77
Derivative financial assets	29,30		311,125		30,110
Inventories, net	8		196,530		204,637
Non-current assets held for sale	35		8,734		8,734
Advanced payments and others	5,29,30,31		159,621		125,798
		****	7,318,651	****	6,352,665
Non-Current Assets:
Long-term financial instruments	29,30		107,975		375
Long-term investment securities	9,29,30		1,314,148		1,715,078
Investments in associates and joint ventures	11		2,049,980		2,197,351
Investment property, net	13		26,122		23,034
Property and equipment, net	12,14,31,32		12,445,644		12,871,259
Goodwill	10		2,075,009		2,072,493
Intangible assets, net	15		3,361,437		3,869,769
Long-term contract assets	7,30		48,312		41,580
Long-term loans, net	5,29,30,31		27,058		21,979
Long-term accounts receivable – other, net	5,29,30,31,32		217,072		275,238
Long-term prepaid expenses	6		1,053,784		1,069,148
Guarantee deposits, net	5,29,30,31		176,423		186,713
Long-term derivative<br><br><br>financial assets	29,30		261,794		187,484
Deferred tax assets	27		329		128
Defined benefit assets	19		33,865		18,427
Other non-current assets	5,29,30		12,172		8,556
		****	23,211,124	****	24,558,612
Total Assets		~~W~~	30,529,775	****	30,911,277

(Continued)

SK TELECOM CO., LTD. and its Subsidiaries

Interim Consolidated Statements of Financial Position, Continued

As of September 30, 2022 and December 31, 2021

(In millions of won)		September 30, 2022<br>(Unaudited)			December 31, 2021
Liabilities and Equity
Current Liabilities:
Accounts payable – trade	29,30,31	~~W~~	148,756			190,559
Accounts payable – other	29,30,31		1,371,736			2,071,870
Withholdings	29,30,31		908,962			790,489
Contract liabilities	7		180,958			166,436
Accrued expenses	29,30		1,425,951			1,295,404
Income tax payable	27		83,873			192,221
Derivative financial liabilities	29,30		—			52
Provisions	18,34		75,577			61,656
Short-term borrowings	16,29,30,32		12,998			12,998
Current portion of long-term debt, net	16,29,30		2,453,690			1,430,324
Current portion of long-term payables – other	17,29,30		397,206			398,823
Lease liabilities	29,30,31		369,229			349,568
Other current liabilities			27			35
		****	7,428,963	****	****	6,960,435	****
Non-Current Liabilities:
Debentures, excluding current portion, net	16,29,30		6,330,784			7,037,424
Long-term borrowings, excluding current portion, net	16,29,30		684,367			353,122
Long-term payables – other	17,29,30		1,234,199			1,611,010
Long-term lease liabilities	29,30,31		1,197,937			1,184,714
Long-term contract liabilities	7		49,584			36,531
Defined benefit liabilities	19		24,334			13,157
Long-term derivative financial liabilities	29,30		321,025			321,084
Long-term provisions	18		44,039			65,339
Deferred tax liabilities	27		849,716			941,301
Other non-current liabilities	29,30,31		67,721			52,022
		****	10,803,706	****	****	11,615,704	****
Total Liabilities		****	18,232,669	****	****	18,576,139	****
Equity:
Share capital	1,20		30,493			30,493
Capital surplus and others	20,21		(11,538,160	)		(11,623,726	)
Retained earnings	22		22,456,993			22,437,341
Reserves	23		556,002			735,238
Equity attributable to owners of the Parent Company			11,505,328			11,579,346
Non-controlling interests			791,778			755,792
Total Shareholder’s Equity		****	12,297,106	****	****	12,335,138	****
Total Liabilities and Shareholder’s Equity		~~W~~	30,529,775	****	****	30,911,277	****

The accompanying notes are an integral part of the interim consolidated financial statements.

SK TELECOM CO., LTD. and its Subsidiaries

Interim Consolidated Statements of Profit or Loss

For the three-month and nine-month periods ended September 30, 2022 and 2021

(In millions of won)			2022<br>(Unaudited)							2021<br>(Unaudited/ Restated)
		Three-monthperiod endedSeptember 30				Nine-monthperiod endedSeptember 30			Three-monthperiod endedSeptember 30				Nine-monthperiod endedSeptember 30
Operating revenue:	4,31
Revenue			~~W~~	4,343,447			12,910,512				4,215,032			12,453,275
Operating expenses:	31
Labor				581,511			1,811,775				538,727			1,657,376
Commission	6			1,384,627			4,065,758				1,345,251			3,999,740
Depreciation and amortization	4			901,190			2,719,406				928,086			2,750,217
Network interconnection				180,007			554,652				184,173			561,319
Leased lines				68,943			197,651				77,024			224,178
Advertising				53,582			157,721				61,205			146,985
Rent				34,362			103,484				42,320			128,572
Cost of goods sold	8			304,699			880,015				309,991			836,358
Others	24			368,955			1,062,481				335,235			985,582
				3,877,876			11,552,943				3,822,012			11,290,327
Operating profit	4		****	465,571	****		1,357,569	****		****	393,020	****		1,162,948	****
Finance income	4,26			37,070			93,474				29,344			111,148
Finance costs	4,26			(90,063	)		(284,488	)			(96,529	)		(335,754	)
Gain (loss) relating to investments in associates and joint ventures, net	4,11			(51,040	)		(75,909	)			29,422			436,739
Other non-operating income	4,25			9,147			33,760				17,676			82,281
Other non-operating expenses	4,25			(8,324	)		(32,272	)			(13,840	)		(34,164	)
Profit before income tax	4		****	362,361	****		1,092,134	****		****	359,093	****		1,423,198	****
Income tax expense	27			116,755			368,036				95,604			363,222
Profit from continuing operations			****	245,606	****		724,098	****		****	263,489	****		1,059,976	****
Profit of discontinued operations, net of taxes	36			—			—				473,021			1,044,207
Profit for the period			~~W~~	245,606	****		724,098	****		****	736,510	****		2,104,183	****
Attributable to:
Owners of the Parent Company			~~W~~	234,628			699,743				784,180			2,108,230
Non-controlling interests				10,978			24,355				(47,670	)		(4,047	)
Earnings per share:	28
Basic earnings per share (in won)			~~W~~	1,059			3,159				2,194			5,894
Basic earnings per share - continuing operations (in won)				1,059			3,159				712			2,849
Diluted earnings per share (in won)				1,059			3,157				2,192			5,890
Diluted earnings per share - continuing operations (in won)				1,059			3,157				711			2,847

The accompanying notes are an integral part of the interim consolidated financial statements.

SK TELECOM CO., LTD. and its Subsidiaries

Interim Consolidated Statements of Comprehensive Income

For the three-month and nine-month periods ended September 30, 2022 and 2021

(In millions of won)			2022<br>(Unaudited)						2021<br>(Unaudited)
	Note		Three-month<br>period ended<br>September 30			Nine-monthperiod ended<br>September 30			Three-month<br>period ended<br>September 30			Nine-monthperiod ended<br>September 30
Profit for the period			~~W~~	245,606	****	****	724,098	****	****	736,510	****	****	2,104,183	****
Other comprehensive income (loss):
Items that will never be reclassified to profit or loss in subsequent periods, net oftaxes:
Remeasurement of defined benefit liabilities		19		36,129			59,624			12,815			1,863
Net change in other comprehensive loss of investments in associates and joint ventures		11,23		—			—			(1,454	)		(4,433	)
Valuation gain (loss) on financial assets at fair value through other comprehensive<br>income		23		(115,051	)		(485,893	)		286,438			985,725
Items that are or may be reclassified subsequently to profit or loss, net oftaxes:
Net change in other comprehensive income of investments in associates and joint ventures		11,23		136,290			263,200			138,115			327,035
Net change in unrealized fair value of derivatives		23		(2,831	)		(12,395	)		3,603			13,928
Foreign currency translation differences for foreign operations		23		37,768			56,483			36,515			54,614
Other comprehensive income (loss) for the period, net of taxes			****	92,305	****	****	(118,981	)	****	476,032	****	****	1,378,732	****
Total comprehensive income			~~W~~	337,911	****	****	605,117	****	****	1,212,542	****	****	3,482,915	****
Total comprehensive income attributable to:
Owners of the Parent Company			~~W~~	320,392			574,586			946,480			3,172,042
Non-controlling interests				17,519			30,531			266,062			310,873

The accompanying notes are an integral part of the interim consolidated financial statements.

SK TELECOM CO., LTD. and its Subsidiaries

Interim Consolidated Statements of Changes in Equity

For the nine-month periods ended September 30, 2022 and 2021

(In millions of won)			Attributable to owners of the Parent Company														Non-controllinginterests			Totalequity
	Note		Share capital		Capital surplusand others			Retainedearnings			Reserves			Sub-total
Balance as of January 1, 2021			~~W~~	44,639	****	677,203	****	****	22,981,913	****	****	40,139	****	****	23,743,894	****	****	652,349	****	****	24,396,243	****
Total comprehensive income:
Profit (loss) for the period				—		—			2,108,230			—			2,108,230			(4,047	)		2,104,183
Other comprehensive income		11,19,23		—		—			13,785			1,050,027			1,063,812			314,920			1,378,732
				—		—			2,122,015			1,050,027			3,172,042			310,873			3,482,915
Transactions with owners:
Annual dividends				—		—			(641,944	)		—			(641,944	)		(25,771	)		(667,715	)
Interim dividends				—		—			(177,902	)		—			(177,902	)		—			(177,902	)
Share option		21		—		407			—			—			407			1,441			1,848
Interest on hybrid bonds				—		—			(11,075	)		—			(11,075	)		—			(11,075	)
Acquisition of treasury shares		20		—		(72,982	)		—			—			(72,982	)		—			(72,982	)
Disposal of treasury shares		20		—		29,803			—			—			29,803			—			29,803
Retirement of treasury shares		20		—		1,965,952			(1,965,952	)		—			—			—			—
Changes in ownership in subsidiaries, etc.				—		226,275			—			—			226,275			(23,589	)		202,686
			****	—	****	2,149,455	****	****	(2,796,873	)	****	—	****	****	(647,418	)	****	(47,919	)	****	(695,337	)
Balance as of September 30, 2021 (Unaudited)			~~W~~	44,639	****	2,826,658	****	****	22,307,055	****	****	1,090,166	****	****	26,268,518	****	****	915,303	****	****	27,183,821	****
Balance as of January 1, 2022			~~W~~	30,493	****	(11,623,726	)	****	22,437,341	****	****	735,238	****	****	11,579,346	****	****	755,792	****	****	12,335,138	****
Total comprehensive income:
Profit for the period				—		—			699,743			—			699,743			24,355			724,098
Other comprehensive income (loss)		11,19,23		—		—			54,079			(179,236	)		(125,157	)		6,176			(118,981	)
				—		—			753,822			(179,236	)		574,586			30,531			605,117
Transactions with owners:
Annual dividends				—		—			(361,186	)		—			(361,186	)		—			(361,186	)
Interim dividends				—		—			(361,909	)		—			(361,909	)		—			(361,909	)
Share option		21		—		76,876			—			—			76,876			—			76,876
Interest on hybrid bonds				—		—			(11,075	)		—			(11,075	)		—			(11,075	)
Transactions of treasury shares		20,21		—		(4,099	)		—			—			(4,099	)		—			(4,099	)
Changes in ownership in subsidiaries, etc.				—		12,789			—			—			12,789			5,455			18,244
				—		85,566			(734,170	)		—			(648,604	)		5,455			(643,149	)
Balance as of September 30, 2022 (Unaudited)			~~W~~	30,493	****	(11,538,160	)	****	22,456,993	****	****	556,002	****	****	11,505,328	****	****	791,778	****	****	12,297,106	****

The accompanying notes are an integral part of the interim consolidated financial statements.

SK TELECOM CO., LTD. and its Subsidiaries

Interim Consolidated Statements of Cash Flows

For the nine-month periods ended September 30, 2022 and 2021

(In millions of won)		2022<br>(Unaudited)			2021<br>(Unaudited)
Cash flows from operating activities:
Cash generated from operating activities:
Profit for the period		~~W~~	724,098			2,104,183
Adjustments for income and expenses	33		3,694,741			2,455,662
Changes in assets and liabilities related to operating activities	33		(37,309	)		(512,621	)
			4,381,530			4,047,224
Interest received			30,502			32,163
Dividends received			15,098			186,722
Interest paid			(192,852	)		(233,623	)
Income tax paid			(444,769	)		(349,941	)
Net cash provided by operating activities		****	3,789,509	****	****	3,682,545	****
Cash flows from investing activities:
Cash inflows from investing activities:
Decrease in short-term investment securities, net			69,909			31,674
Collection of short-term loans			94,855			113,170
Decrease in long-term investment securities			222,432			343
Proceeds from disposals of long-term investment securities			100,135			61,184
Proceeds from disposals of investments in associates and joint ventures			342,645			100,334
Proceeds from disposals of property and equipment			4,526			49,025
Proceeds from disposals of intangible assets			10,685			7,289
Collection of long-term loans			995			3,533
Decrease in deposits			8,948			1,169
Proceeds from settlement of derivatives			1,277			1,131
			856,407			368,852
Cash outflows for investing activities:
Increase in short-term financial instruments, net			(203,223	)		(142,192	)
Increase in short-term loans			(96,806	)		(81,546	)
Increase in long-term loans			(9,652	)		(8,913	)
Increase in long-term financial instruments			(330,032	)		(18	)
Acquisitions of long-term investment securities			(320,637	)		(274,589	)
Acquisitions of investments in associates and joint ventures			(9,056	)		(220,500	)
Acquisitions of property and equipment			(2,125,690	)		(2,114,612	)
Acquisitions of intangible assets			(48,212	)		(111,162	)
Increase in deposits			(10,936	)		(22,151	)
Cash outflow for business combinations, net			(62,312	)		(101,667	)
			(3,216,556	)		(3,077,350	)
Net cash used in investing activities		~~W~~	(2,360,149	)	****	(2,708,498	)

(Continued)

SK TELECOM CO., LTD. and its Subsidiaries

Interim Consolidated Statements of Cash Flows, Continued

For the nine-month periods ended September 30, 2022 and 2021

(In millions of won)	2022<br>(Unaudited)			2021<br>(Unaudited)
Cash flows from financing activities:			****
Cash inflows from financing activities:
Proceeds from issuance of debentures	~~W~~	891,272			607,437
Proceeds from long-term borrowings		350,000			350,000
Cash inflows from settlement of derivatives		768			10
Increase in financial liabilities at FVTPL		—			129,123
Transactions with non-controlling shareholders		31,151			444,121
		1,273,191			1,530,691
Cash outflows for financing activities:
Repayments of short-term borrowings, net		—			(51,344	)
Repayments of long-term payables – other		(400,245	)		(426,267	)
Repayments of debentures		(940,000	)		(430,000	)
Repayments of long-term borrowings		(32,096	)		(217,477	)
Payments of dividends		(723,062	)		(850,617	)
Payments of interest on hybrid bonds		(11,075	)		(11,075	)
Repayments of lease liabilities		(296,622	)		(320,968	)
Acquisition of treasury shares		—			(72,982	)
Transactions with non-controlling shareholders		(367	)		(13,564	)
		(2,403,467	)		(2,394,294	)
Net cash used in financing activities	****	(1,130,276	)	****	(863,603	)
Net increase in cash and cash equivalents	****	299,084	****	****	110,444	****
Cash and cash equivalents at beginning of the period		872,731			1,369,653
Effects of exchange rate changes on cash and cash equivalents		19,637			11,454
Cash and cash equivalents at end of the period	~~W~~	1,191,452	****	****	1,491,551	****

The accompanying notes are an integral part of the interim consolidated financial statements.

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2022 and 2021 (Unaudited)

1.	Reporting Entity
(1)	General
---	---

SK Telecom Co., Ltd. (“the Parent Company”) was incorporated in March 1984 under the laws of the Republic of Korea (“Korea”) to provide cellular telephone communication services in Korea. The Parent Company mainly provides wireless telecommunications services in Korea. The head office of the Parent Company is located at 65, Eulji-ro, Jung-gu, Seoul, Korea.

The Parent Company’s common shares and depositary receipts (DRs) are listed on the Stock Market of Korea Exchange, the New York Stock Exchange and the London Stock Exchange. As of September 30, 2022, the Parent Company’s total issued shares are held by the following shareholders:


SK Inc.	65,668,397	30.01
National Pension Service	17,323,760	7.91
Institutional investors and other shareholders	131,193,409	59.95
Kakao Corp.	3,846,487	1.76
Treasury shares	801,091	0.37
	218,833,144	100.00

These interim consolidated financial statements comprise the Parent Company and its subsidiaries (together referred to as the “Group” and individually as “Group entity”). SK Inc. is the ultimate controlling entity of the Parent Company.

On November 1, 2021, the date of spin-off, the Parent Company completed the spin-off of its businesses of managing investments in semiconductor, New Information and Communication Technologies(“ICT”) and other business and making new investments. (See note 36.)

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2022 and 2021 (Unaudited)

1.	Reporting Entity, Continued
(2)	List of consolidated subsidiaries
---	---

The list of consolidated subsidiaries as of September 30, 2022 and December 31, 2021 is as follows:

				*Ownership (%)(1)**
Subsidiary		Location	Primary business	Sept. 30,<br>2022		Dec. 31,2021
Subsidiaries owned by the Parent Company	SK Telink Co., Ltd.	Korea	Telecommunication and<br>Mobile Virtual Network<br>Operator service		100.0		100.0
	SK Communications Co., Ltd.	Korea	Internet website services		100.0		100.0
	SK Broadband Co., Ltd.	Korea	Telecommunication services		74.3		74.3
	PS&Marketing Corporation	Korea	Communications device retail<br>business		100.0		100.0
	SERVICE ACE Co., Ltd.	Korea	Call center management<br>service		100.0		100.0
	SERVICE TOP Co., Ltd.	Korea	Call center management<br>service		100.0		100.0
	SK O&S Co., Ltd.	Korea	Base station maintenance<br>service		100.0		100.0
	SK Telecom China Holdings Co., Ltd.	China	Investment (Holdings<br>company)		100.0		100.0
	SK Global Healthcare Business Group Ltd.	Hong Kong	Investment		100.0		100.0
	YTK Investment Ltd.	Cayman Islands	Investment association		100.0		100.0
	Atlas Investment	Cayman Islands	Investment association		100.0		100.0
	SK Telecom Americas, Inc.	USA	Information gathering and<br>consulting		100.0		100.0
	Quantum Innovation Fund I	Korea	Investment		59.9		59.9
	SK Telecom Japan Inc.	Japan	Information gathering and<br>consulting		100.0		100.0
	Happy Hanool Co., Ltd.	Korea	Service		100.0		100.0
	SK stoa Co., Ltd.	Korea	Other telecommunication retail<br>business		100.0		100.0
	Broadband Nowon Co., Ltd.	Korea	Cable broadcasting services		100.0		100.0
	SAPEON Inc.(*2,3)	USA	Manufacturing non-memory<br>and other electronic<br>integrated circuits		62.5		—
Subsidiaries owned by SK Broadband Co., Ltd.	Home & Service Co., Ltd.	Korea	Operation of information and<br> <br>communication facility		100.0		100.0
	Media S Co., Ltd.	Korea	Production and supply services<br>of broadcasting programs		100.0		100.0
Subsidiary owned by PS&Marketing Corporation	SK m&service Co., Ltd.(*2,4)	Korea	Database and Internet website<br>service		100.0		—
Subsidiary owned by Quantum Innovation Fund I	PanAsia Semiconductor Materials LLC.	Korea	Investment		66.4		66.4
Subsidiary owned by SK Telecom Japan Inc.	SK Planet Japan, K. K.	Japan	Digital contents sourcing<br>service		79.8		79.8
Subsidiary owned by SAPEON Inc.	SAPEON Korea Inc.(*2,5)	Korea	Manufacturing non-memory<br>and other electronic<br>integrated circuits		100.0		—
Others(*6)	SK Telecom Innovation Fund, L.P.	USA	Investment		100.0		100.0
	SK Telecom China Fund I L.P.	Cayman Islands	Investment		100.0		100.0

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2022 and 2021 (Unaudited)

1.	Reporting Entity, Continued
(2)	List of consolidated subsidiaries, Continued
---	---

The list of consolidated subsidiaries as of September 30, 2022 and December 31, 2021 is as follows, Continued:

(*1)	The ownership interest represents direct ownership interest in subsidiaries either by the Parent Company or<br>subsidiaries of the Parent Company.
(*2)	Details of changes in the consolidation scope for the nine-month period ended September 30, 2022 are<br>presented in note 1-(4).
---	---
(*3)	The Parent Company newly established SAPEON Inc. and the ownership interest of the Parent Company in SAPEON<br>Inc. has changed from 100% to 62.5% due to unequal paid-in capital increase of SAPEON Inc. for the nine-month period ended September 30, 2022.
---	---
(*4)	PS&Marketing Corporation acquired 3,099,112 shares (100%) of SK m&service Co., Ltd. at<br>~~W~~72,859 million in cash for the nine-month period ended September 30, 2022 in order to strengthen the distribution competitiveness and improve the synergy within SKT ICT Family.
---	---
(*5)	The Parent Company newly established SAPEON Korea Inc. and disposed the entire shares of SAPEON Korea Inc. to<br>SAPEON Inc. for ~~W~~40,000 million in cash during the nine-month period ended September 30, 2022.
---	---
(*6)	Others are owned by Atlas Investment and another subsidiary of the Parent Company.
---	---
(3)	Condensed financial information of subsidiaries
---	---
1)	Condensed financial information of significant consolidated subsidiaries as of and for the nine-month period<br>ended September 30, 2022 is as follows:
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---	---	---
	As of September 30, 2022						For the nine-month periodended September 30, 2022
Subsidiary	Total assets		Total liabilities		Total equity		Revenue		Profit
SK Telink Co., Ltd.	~~W~~	190,930		56,040		134,890		230,063		16,234
SK Broadband Co., Ltd.		6,081,822		3,040,828		3,040,994		3,107,913		155,588
PS&Marketing Corporation		456,659		238,796		217,863		971,392		2,848
SERVICE ACE Co., Ltd.		84,622		58,138		26,484		143,627		2,117
SERVICE TOP Co., Ltd.		79,772		48,699		31,073		132,418		2,813
SK O&S Co., Ltd.		103,726		69,278		34,448		209,591		2,831
Home & Service Co., Ltd.		148,903		91,148		57,755		307,903		1,257
SK stoa Co., Ltd.		95,312		38,132		57,180		243,000		8,632
SK m&service Co., Ltd.(*)		158,609		95,124		63,485		141,488		3,246
(*)	The financial information is the condensed financial information after the entity was included in the scope of<br>consolidation.
---	---

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2022 and 2021 (Unaudited)

1.	Reporting Entity, Continued
(3)	Condensed financial information of subsidiaries, Continued
---	---
2)	Condensed financial information of significant consolidated subsidiaries as of and for the year ended<br>December 31, 2021 is as follows:
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---	---	---
	As of December 31, 2021						2021
Subsidiary	Total assets		Total liabilities		Total equity		Revenue		Profit
SK Telink Co., Ltd.	~~W~~	174,837		52,821		122,016		313,404		8,846
SK Broadband Co., Ltd.		5,971,505		3,091,837		2,879,668		4,058,997		213,468
PS&Marketing Corporation		478,745		263,457		215,288		1,445,540		3,179
SERVICE ACE Co., Ltd.		99,059		66,496		32,563		197,146		2,519
SERVICE TOP Co., Ltd.		72,026		46,067		25,959		185,452		2,066
SK O&S Co., Ltd.		95,748		58,870		36,878		285,591		69
Home & Service Co., Ltd.		131,947		90,775		41,172		405,255		550
SK stoa Co., Ltd.		107,943		59,931		48,012		316,249		19,163
(4)	Changes in subsidiaries
---	---

The list of subsidiaries that were newly included in consolidation for the nine-month period ended September 30, 2022 is as follows:

Subsidiary	Reason
SAPEON Korea Inc.	Established by the Parent Company
SAPEON Inc.	Established by the Parent Company
SK m&service Co., Ltd.	Acquired by PS&Marketing Corporation

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2022 and 2021 (Unaudited)

1.	Reporting Entity, Continued
(5)	The financial information of significant non-controlling interests of<br>the Group as of and for the nine-month period ended September 30, 2022 and as of and for the year ended December 31, 2021 are as follows:
---	---
(In millions of won)
---	---	---	---
	*SK Broadband Co., Ltd.()**
Ownership of non-controlling interests (%)		25.3
	As of September 30, 2022
Current assets	~~W~~	1,605,070
Non-current assets		4,503,643
Current liabilities		(1,790,785	)
Non-current liabilities		(1,269,938	)
Net assets		3,047,990
Fair value adjustment and others		—
Net assets on the consolidated financial statements		3,047,990
Carrying amount of non-controlling interests		770,235
	For the nine-month period ended September 30, 2022
Revenue	~~W~~	3,103,021
Profit for the period		159,258
Depreciation of the fair value adjustment and others		—
Profit for the period on the consolidated financial statements		159,258
Total comprehensive income		178,096
Profit attributable to non-controlling interests		38,355
Net cash provided by operating activities	~~W~~	919,692
Net cash used in investing activities		(481,949	)
Net cash used in financing activities		(261,838	)
Effects of exchange rate changes on cash and cash equivalents		36
Net increase in cash and cash equivalents		175,941
Dividends paid to non-controlling interests for the<br>nine-month period ended September 30, 2022	~~W~~	—
(*)	The condensed financial information above is the consolidated financial information of subsidiaries.<br>
---	---

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2022 and 2021 (Unaudited)

1.	Reporting Entity, Continued
(5)	The financial information of significant non-controlling interests of<br>the Group as of and for the nine-month period ended September 30, 2022 and as of and for the year ended December 31, 2021 are as follows, Continued:
---	---
(In millions of won)	*SK Broadband Co., Ltd.()**
---	---	---	---
Ownership of non-controlling interests (%)		25.1
	As of December 31, 2021
Current assets	~~W~~	1,252,935
Non-current assets		4,744,905
Current liabilities		(1,433,800	)
Non-current liabilities		(1,696,357	)
Net assets		2,867,683
Fair value adjustment and others		(10,230	)
Net assets on the consolidated financial statements		2,857,453
Carrying amount of non-controlling interests		740,771
	2021
Revenue	~~W~~	4,049,156
Profit for the year		198,268
Depreciation of the fair value adjustment and others		—
Profit for the year on the consolidated financial statements		198,268
Total comprehensive income		214,003
Profit attributable to non-controlling interests		52,935
Net cash provided by operating activities	~~W~~	1,072,307
Net cash used in investing activities		(615,510	)
Net cash used in financing activities		(248,139	)
Effects of exchange rate changes on cash and cash equivalents		(59	)
Net increase in cash and cash equivalents		208,599
Dividends paid to non-controlling interests for the year<br>ended December 31, 2021	~~W~~	—
(*)	The condensed financial information above is the consolidated financial information of subsidiaries.<br>
---	---

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2022 and 2021 (Unaudited)

2.	Basis of Preparation
(1)	Statement of compliance
---	---

These interim condensed consolidated financial statements were prepared in accordance with International Financial Reporting Standard as adopted by the Republic of Korea (“KIFRS”) 1034 Interim Financial Reporting as part of the period covered by the Group’s KIFRS annual financial statements. Selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in financial position and performance of the Group since December 31, 2021. These interim consolidated financial statements do not include all of the disclosures required for full annual financial statements. The accompanying interim consolidated financial statements have been translated into English from the Korean language financial statements. In the event of any differences in interpreting the financial statements or the independent auditor’s review report thereon, the Korean version, which is used for regulatory reporting purposes, shall prevail.

(2)	Use of estimates and judgments
1)	Critical judgments, assumptions and estimation uncertainties
---	---

The preparation of the interim consolidated financial statements in conformity with KIFRS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.

In preparing these interim consolidated financial statements, the significant judgments made by management in applying the Group’s accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements as of and for the year ended December 31, 2021.

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2022 and 2021 (Unaudited)

2.	Basis of Preparation, Continued
(2)	Use of estimates and judgments, Continued
---	---
2)	Fair value measurement
---	---

A number of the Group’s accounting policies and disclosures require the measurement of fair values, for both financial and non-financial assets and liabilities. The Group has established policies and processes with respect to the measurement of fair values, including Level 3 fair values, and the measurement of fair values is reviewed and is directly reported to the finance executives.

The Group regularly reviews significant unobservable inputs and valuation adjustments. If third party information, such as broker quotes or pricing services, is used to measure fair values, then the Group assesses the evidence obtained from the third parties to support the conclusion that such valuations meet the requirements of KIFRS, including the level in the fair value hierarchy in which such valuations should be classified.

When measuring the fair value of an asset or a liability, the Group uses market observable data as far as possible. Fair values are categorized into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows:

•	Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities;<br>
•	Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or<br>liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices); and
---	---
•	Level 3: inputs for the asset or liability that are not based on observable market data (unobservable<br>inputs).
---	---

If the inputs used to measure the fair value of an asset or a liability fall into different levels of the fair value hierarchy, then the fair value measurement is categorized in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement. The Group recognizes transfers between levels of the fair value hierarchy at the end of the reporting period during which the change has occurred.

Information about assumptions used for fair value measurements are included in note 30.

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2022 and 2021 (Unaudited)

3.	Significant Accounting Policies

The significant accounting policies applied by the Group in these interim consolidated financial statements are the same as those applied by the Group in its consolidated financial statements as of and for the year ended December 31, 2021. The Group has not early applied the new and revised KIFRS and interpretations that have been issued but are not yet effective.

The following new and amended KIFRS and interpretations are effective from January 1, 2022, initially, but these amended standards are not expected to have a significant impact on the Group’s interim consolidated financial statements.

•	Onerous Contracts – Cost of Fulfilling a Contract (Amendments to KIFRS 1037).
•	Reference to Conceptual Framework (Amendments to KIFRS 1103).
---	---
•	Property, Plant and Equipment: Proceeds before Intended Use (Amendments to KIFRS 1016).
---	---
•	Annual Improvements to KIFRS 2018-2020.
---	---

As described in note 36, the Parent Company carried out a spin-off of its businesses of managing investments in semiconductor, New Information and Communication Technologies(“ICT”) and other businesses and making new investments pursuant to the resolution of the Board of Directors on June 10, 2021 and approval of shareholders’ meeting on October 12, 2021. The Group has applied KIFRS 1105 Non-current Assets Held for Sale and Discontinued Operations, and accordingly, presented profit or loss of the spin-off business as discontinued operations. The comparative interim consolidated statement of profit or loss for the three and nine-month periods ended September 30, 2021 and related notes have been restated to present the discontinued operations separately from continuing operations.

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2022 and 2021 (Unaudited)

4.	Operating Segments

The Group’s operating segments have been identified to be each business unit, by which the Group provides different services and merchandise. The Group’s reportable segments include: cellular services, which include cellular voice service, wireless data service and wireless internet services; fixed-line telecommunication services, which include telephone services, internet services, and leased line services; and all other businesses, which include providing shopping channel and digital platform for selling products and other immaterial operations, each of which does not meet the quantitative threshold to be considered as a reportable segment and are presented collectively as others.

(1)	Segment information for the nine-month periods ended September 30, 2022 and 2021 are as follows:<br>
(In millions of won)
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	For the nine-month period ended September 30, 2022
	Cellular<br>services		Fixed-line<br>telecommunication<br>services		Others		Sub-total		Adjustments			Total
Total revenue	~~W~~	10,775,291		3,659,772		419,523		14,854,586		(1,944,074	)		12,910,512
Inter-segment revenue		1,117,580		802,308		24,186		1,944,074		(1,944,074	)		—
External revenue		9,657,711		2,857,464		395,337		12,910,512		—			12,910,512
Depreciation and amortization		2,055,412		736,489		16,090		2,807,991		(88,585	)		2,719,406
Operating profit (loss)		1,138,569		245,281		1,347		1,385,197		(27,628	)		1,357,569
Finance income and costs, net													(191,014	)
Loss relating to investments in associates and joint ventures, net													(75,909	)
Other non-operating income and expense,<br>net													1,488
Profit before income tax													1,092,134
(In millions of won)
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	For the nine-month period ended September 30, 2021 (Restated)
	Continuing operations														Discontinued<br>operations
	Cellular<br>services		Fixed-line<br>telecommunication<br>services		Others<br>*()**		Sub-total		Adjustments			Total
Total revenue	~~W~~	10,547,775		3,553,923		268,287		14,369,985		(1,916,710	)		12,453,275			2,519,337
Inter-segment revenue		1,110,938		798,425		7,347		1,916,710		(1,916,710	)		—			406,383
External revenue		9,436,837		2,755,498		260,940		12,453,275		—			12,453,275			2,112,954
Depreciation and amortization		2,114,139		711,118		8,151		2,833,408		(83,191	)		2,750,217			258,433
Operating profit (loss)		964,280		236,664		10,914		1,211,858		(48,910	)		1,162,948			22,399
Finance income and costs, net													(224,606	)		(156,613	)
Gain relating to investments in associates and joint ventures, net													436,739			1,286,886
Other non-operating income and expense,<br>net													48,117			62,495
Profit before income tax													1,423,198			1,215,167

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2022 and 2021 (Unaudited)

4.	Operating Segments, Continued
(1)	Segment information for the nine-month periods ended September 30, 2022 and 2021 are as<br>follows, Continued:
---	---
(*)	The Parent Company carried out spin-off of its businesses of managing<br>investments in semiconductor, New Information and Communication Technologies(“ICT”) and other business and making new investments for the year ended December 31, 2021. Accordingly, the Group reclassified SK stoa Co., Ltd. from<br>Commerce Services segment to Others segment.
---	---

The Group has restated the previously reported segment information for the nine-month period ended September 30, 2021 to reflect reclassification of operating segments due to the spin-off.

Since there are no intersegment sales of inventories or depreciable assets, there is no unrealized intersegment profit to be eliminated on consolidation. The Group principally operates its businesses in Korea, and the revenue amounts earned outside of Korea are immaterial. Therefore, no entity-wide geographical information is presented.

No single customer contributed 10% or more to the Group’s total revenue for the nine-month periods ended September 30, 2022 and for the year ended December 31, 2021.

(2)	Disaggregation of operating revenues considering the economic factors that affect the amounts, timing and<br>uncertainty of the Group’s revenue and future cash flows is as follows:
(In millions of won)		For the nine-month period ended
---	---	---	---	---	---
		September 30, 2022		September 30, 2021(Restated)
Goods and Services transferred at a point in time:
Cellular revenue	Goods and others(*1)	~~W~~	671,267		675,936
Fixed-line telecommunication revenue	Goods and others		49,770		74,306
Other revenue	Others(*2)		332,831		242,232
			1,053,868		992,474
Goods and Services transferred over time:
Cellular revenue	Wireless service(*3)		7,673,655		7,530,028
	Cellular interconnection		375,928		364,593
	Other(*4)		936,861		866,280
Fixed-line telecommunication revenue	Fixed-line service		123,627		168,569
	Cellular interconnection		16,994		61,216
	Internet Protocol Television(*5)		1,363,843		1,330,063
	International calls		136,990		124,682
	Internet service and miscellaneous(*6)		1,166,240		996,662
Other revenue	Miscellaneous(*2)		62,506		18,708
			11,856,644		11,460,801
Discontinued operations			—		2,112,954
		~~W~~	12,910,512		14,566,229

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2022 and 2021 (Unaudited)

4.	Operating Segments, Continued
(2)	Disaggregation of operating revenues considering the economic factors that affect the amounts, timing and<br>uncertainty of the Group’s revenue and future cash flows is as follows, Continued:
---	---
(*1)	Cellular revenue includes revenue from sales of handsets and other electronic accessories.<br>
---	---
(*2)	Miscellaneous other revenue includes revenue from considerations received for the product sales-type data<br>broadcasting channel use and sales of goods through data broadcasting.
---	---
(*3)	Wireless service includes revenue from wireless voice and data transmission services principally derived from<br>usage charges to wireless subscribers.
---	---
(*4)	Other revenue includes revenue from billing and collection services as well as other miscellaneous services.<br>
---	---
(*5)	Internet Protocol Television (“IPTV”) service revenue includes revenue from IPTV services principally<br>derived from usage charges to IPTV subscribers.
---	---
(*6)	Internet service includes revenue from the high speed broadband internet service principally derived from usage<br>charges to subscribers as well as other miscellaneous services.
---	---

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2022 and 2021 (Unaudited)

5.	Trade and Other Receivables
(1)	Details of trade and other receivables as of September 30, 2022 and December 31, 2021 are as follows:<br>
---	---
(In millions of won)	September 30, 2022
---	---	---	---	---	---	---	---
	Gross<br>amount		Lossallowance			Carrying<br>amount
Current assets:
Accounts receivable – trade	~~W~~	2,331,010		(247,733	)		2,083,277
Short-term loans		76,067		(690	)		75,377
Accounts receivable – other(*)		613,528		(44,308	)		569,220
Accrued income		2,066		—			2,066
Guarantee deposits (Other current assets)		111,615		—			111,615
		3,134,286		(292,731	)		2,841,555
Non-current assets:
Long-term loans		72,089		(45,031	)		27,058
Long-term accounts receivable – other(*)		218,950		(1,878	)		217,072
Guarantee deposits		176,723		(300	)		176,423
Long-term accounts receivable – trade (Other<br>non-current assets)		11,568		(4	)		11,564
		479,330		(47,213	)		432,117
	~~W~~	3,613,616		(339,944	)		3,273,672
(*)	Gross and carrying amounts of accounts receivable – other as of September 30, 2022 include<br>~~W~~373,999 million of financial instruments classified as FVTPL.
---	---
(In millions of won)	December 31, 2021
---	---	---	---	---	---	---	---
	Gross<br>amount		Lossallowance			Carrying<br>amount
Current assets:
Accounts receivable – trade	~~W~~	2,152,358		(238,847	)		1,913,511
Short-term loans		71,750		(933	)		70,817
Accounts receivable – other(*)		593,109		(44,747	)		548,362
Accrued income		762		—			762
Guarantee deposits (Other current assets)		92,046		—			92,046
		2,910,025		(284,527	)		2,625,498
Non-current assets:
Long-term loans		66,431		(44,452	)		21,979
Long-term accounts receivable – other(*)		277,116		(1,878	)		275,238
Guarantee deposits		186,713		—			186,713
Accounts receivable – trade (Other non-current<br>assets)		8,140		(34	)		8,106
		538,400		(46,364	)		492,036
	~~W~~	3,448,425		(330,891	)		3,117,534
(*)	Gross and carrying amounts of accounts receivable – other as of December 31, 2021 include<br>~~W~~459,959 million of financial instruments classified as FVTPL.
---	---

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2022 and 2021 (Unaudited)

5.	Trade and Other Receivables, Continued
(2)	Changes in the loss allowance on trade and other receivables measured at amortized cost for the nine-month<br>periods ended September 30, 2022 and 2021 are as follows:
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---	---	---	---	---	---
	January 1,2022		Impairment		*Write-offs()**			Collection ofreceivablespreviouslywritten-off		Businesscombination		September 30,2022
Accounts receivable – trade	~~W~~	238,881		23,062		(22,957	)		8,748		3		247,737
Accounts receivable – other, etc.		92,010		2,267		(3,687	)		1,225		392		92,207
	~~W~~	330,891		25,329		(26,644	)		9,973		395		339,944
(In millions of won)
	January 1,2021		Impairment		*Write-offs()**			Collection ofreceivablespreviouslywritten-off		Businesscombination		September 30,2021
Accounts receivable – trade	~~W~~	264,498		22,837		(33,810	)		11,991		878		266,394
Accounts receivable – other, etc.		100,565		3,142		(9,888	)		6,586		358		100,763
	~~W~~	365,063		25,979		(43,698	)		18,577		1,236		367,157
(*)	The Group writes off trade and other receivables that are determined to be uncollectable due to reasons, such<br>as termination of operations or bankruptcy.
---	---
(3)	The Group applies the practical expedient that allows the Group to estimate the loss allowance for accounts<br>receivable – trade at an amount equal to the lifetime expected credit losses. The expected credit losses include the forward-looking information. To make the assessment, the Group uses its historical credit loss experience over the past three<br>years and classifies accounts receivable – trade by their credit risk characteristics and days overdue.
---	---

As the Group is a wireless and fixed-line telecommunications service provider, the Group’s financial assets measured at amortized cost primarily consist of receivables from numerous individual customers, and, therefore, no significant credit concentration risk arises.

Receivables related to other revenue mainly consist of receivables from corporate customers. The Group transacts only with corporate customers with credit ratings that are considered to be low at credit risk. In addition, the Group is not exposed to significant credit concentration risk as the Group regularly assesses their credit risk by monitoring their credit ratings. While the contract assets are subject to the impairment requirements, no significant expected credit loss has been identified.

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2022 and 2021 (Unaudited)

6.	Prepaid Expenses

The Group pays commissions to its retail stores and authorized dealers, primarily for wireless and fixed-line telecommunication services. The Group capitalized certain costs associated with commissions paid to retail stores and authorized dealers to obtain new and retained customer contracts as prepaid expenses. These prepaid expenses are amortized on a straight-line basis over the periods that the Group expects to maintain its customers.

(1)	Details of prepaid expenses as of September 30, 2022 and December 31, 2021 are as follows:<br>
(In millions of won)
---	---	---	---	---
	September 30, 2022		December 31, 2021
Current assets:
Incremental costs of obtaining contracts	~~W~~	1,893,413		1,886,680
Others		101,006		100,823
	~~W~~	1,994,419		1,987,503
Non-current assets:
Incremental costs of obtaining contracts	~~W~~	981,979		977,236
Others		71,805		91,912
	~~W~~	1,053,784		1,069,148
(2)	Incremental costs of obtaining contracts
---	---

The amortization and impairment losses in connection with incremental costs of obtaining contracts recognized for the nine-month periods ended September 30, 2022 and 2021 are as follows:

(In millions of won)	2022				*2021()**
	Three-monthperiod ended<br>September 30		Nine-month<br>period endedSeptember 30		Three-month<br>period ended<br>September 30		Nine-month<br>period endedSeptember 30
Amortization and impairment losses recognized	~~W~~	674,485		1,920,211		676,467		1,992,631

(*) Includes amounts related to discontinued operations.

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2022 and 2021 (Unaudited)

7.	Contract Assets and Liabilities

In case of providing both wireless telecommunication services and sales of handsets, the Group allocated the consideration based on relative stand-alone selling prices and recognized unbilled receivables from handset sales as contract assets. The Group recognized receipts in advance for prepaid telecommunications services and unearned revenue for customer loyalty programs as contract liabilities.

(1)	Details of contract assets and liabilities as of September 30, 2022 and December 31, 2021 are as<br>follows:
(In millions of won)
---	---	---	---	---
	September 30, 2022		December 31, 2021
Contract assets:
Allocation of consideration between performance obligations	~~W~~	129,622		118,278
Contract liabilities:
Wireless service contracts		19,054		18,397
Customer loyalty programs		8,123		12,699
Fixed-line service contracts		127,977		118,600
Others		75,388		53,271
	~~W~~	230,542		202,967
(2)	The amount of revenue recognized for the nine-month periods ended September 30, 2022 and 2021 related to<br>the contract liabilities carried forward from the previous year are ~~W~~119,051 million and ~~W~~118,969 million, respectively.
---	---
8.	Inventories
---	---
(1)	Details of inventories as of September 30, 2022 and December 31, 2021 are as follows:<br>
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	September 30, 2022							December 31, 2022
	Acquisitioncost		Valuationallowance			Carryingamount		Acquisitioncost		Valuationallowance			Carryingamount
Merchandise	~~W~~	189,719		(2,602	)		187,117		204,545		(3,419	)		201,126
Supplies		9,413		—			9,413		3,511		—			3,511
	~~W~~	199,132		(2,602	)		196,530		208,056		(3,419	)		204,637
(2)	Cost of inventories recognized as operating expenses for the nine-month periods ended September 30, 2022<br>and 2021 are ~~W~~880,015 million and ~~W~~1,061,517 million, respectively, which are included in cost of goods sold. In addition, valuation losses on inventories which are included in cost of goods sold amount to<br>~~W~~717 million and ~~W~~1,484 million for the nine-month periods ended September 30, 2022 and 2021, respectively. Write-downs included in other operating expenses for the nine-month period ended<br>September 30, 2021 are ~~W~~358 million. Those amounts include profit or loss of discontinued operations for the nine-month period ended September 30, 2021.
---	---

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2022 and 2021 (Unaudited)

9.	Investment Securities
(1)	Details of short-term investment securities as of September 30, 2022 and December 31, 2021 are as<br>follows:
---	---
(In millions of won)
---	---	---	---	---	---
	Category	September 30, 2022		December 31, 2021
Beneficiary certificates	FVTPL	~~W~~	—		5,010
(2)	Details of long-term investment securities as of September 30, 2022 and December 31, 2021 are as<br>follows:
---	---
(In millions of won)
---	---	---	---	---	---
	Category	September 30, 2022		December 31, 2021
Equity instruments	FVOCI(*)	~~W~~	1,093,516		1,510,428
	FVTPL		42,603		57,830
			1,136,119		1,568,258
Debt instruments	FVOCI		1,425		1,177
	FVTPL		176,604		145,643
			178,029		146,820
		~~W~~	1,314,148		1,715,078
(*)	The Group designated investments in equity instruments that are not held for trading as financial assets at<br>FVOCI, and the amounts of those equity instruments as of September 30, 2022 and December 31, 2021 are ~~W~~ ~~~~ 1,093,516 million and ~~W~~1,510,428 million, respectively.<br>
---	---

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2022 and 2021 (Unaudited)

10.	Business Combinations
(1)	2022
---	---
1)	Acquisition of SK m&service Co., Ltd. by PS&Marketing Corporation:
---	---

PS&Marketing Corporation obtained control over SK m&service Co., Ltd. by acquiring its 3,099,112 shares (100%) for the nine-month period ended September 30, 2022. As this transaction is a business combination under common control, the assets acquired and liabilities assumed were recognized at the carrying amounts in the ultimate controlling entity’s consolidated financial statements, and the difference between the consideration transferred and the carrying amounts of net assets was recognized as capital surplus and others. Subsequent to the acquisition of control, SK m&service Co., Ltd. recognized revenue of ~~W~~141,488 million and net profit of ~~W~~3,246 million. Meanwhile, assuming that business combination has occurred as of January 1, 2022, the Group would have recognized revenue of ~~W~~180,515 million and net profit of ~~W~~3,784 million.

(i)	Summary of the acquiree
	Information of Acquiree
---	---
Corporate name	SK m&service Co., Ltd.
Location	16^th^ floor, 34, Supyo-ro, Jung-gu, Seoul, Korea
CEO	Park, Jeong-Min
Industry	Database and Internet website service
(ii)	Considerations transferred and identifiable assets acquired and liabilities assumed at the acquisition date are<br>as follows:
---	---
(In millions of won)
---	---	---	---
	Amounts
I. Consideration transferred:
Cash and cash equivalents	~~W~~	72,859
II. Fair value of identifiable assets acquired and liabilities assumed:
Cash and cash equivalents		10,547
Accounts receivable – trade and other, net		76,035
Inventories, net		3,349
Property and equipment, net		27,138
Intangible assets, net		12,462
Goodwill		2,515
Other assets		10,395
Accounts payable – trade and other		(53,894	)
Income tax payable		(399	)
Lease liabilities		(6,503	)
Provisions		(991	)
Defined benefit liabilities		(2,739	)
Other liabilities		(18,337	)
		59,578
III. Capital surplus and others(I - II)	~~W~~	13,281

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2022 and 2021 (Unaudited)

10.	Business Combinations, Continued
(2)	2021
---	---
1)	Merger of ADT CAPS Co., Ltd. by SK Shieldus Co., Ltd. (Formerly, ADT CAPS Co, Ltd., at the time of merger, SK<br>Infosec Co., Ltd.):
---	---

On March 4, 2021, SK Infosec Co., Ltd. merged with ADT CAPS Co., Ltd., a subsidiary of SK Infosec Co., Ltd., to improve management efficiency. As this transaction is a business combination under common control, the assets acquired and liabilities assumed were recognized at the carrying amounts in the ultimate controlling entity’s consolidated financial statements, and there is no effect on the assets and liabilities of the consolidated financial statements. After the date of the merger, SK Infosec Co., Ltd. changed its name to ADT CAPS Co., Ltd. and then again, in October 2021, ADT CAPS Co., Ltd. changed its name to SK Shieldus Co., Ltd.

Identifiable assets acquired and liabilities assumed were transferred to the spin-off company.

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2022 and 2021 (Unaudited)

10.	Business Combinations, Continued
(2)	2021, Continued
---	---
2)	Acquisition of Studio Dolphin Co., Ltd. by Dreamus Company:
---	---

Dreamus Company obtained control over Studio Dolphin Co., Ltd. by acquiring its 10,000 shares (100%) for the year ended December 31, 2021. The consideration transferred was ~~W~~1,500 million in cash, and the difference between the fair value of net assets acquired and the consideration transferred amounting to ~~W~~1,465 million was recognized as goodwill.

Identifiable assets acquired and liabilities assumed and goodwill were transferred to the spin-off company.

(i)	Summary of the acquiree
	Information of Acquiree
---	---
Corporate name	Studio Dolphin Co., Ltd.
Location	3^rd^ floor, 10, Jandari-ro 7an-gil, Mapo-gu,<br>Seoul, Korea
CEO	Kim, Dong-Hee
Industry	Music and sound recording business
(ii)	Considerations transferred and identifiable assets acquired and liabilities assumed at the acquisition date are<br>as follows:
---	---
(In millions of won)
---	---	---	---
	Amounts
I. Consideration transferred:
Cash and cash equivalents	~~W~~	1,500
II. Fair value of identifiable assets acquired and liabilities assumed:
Cash and cash equivalents		20
Accounts receivable – trade and other, net		31
Other assets		7
Accounts payable – trade and other		(4	)
Short-term borrowings		(2	)
Other liabilities		(17	)
		35
III. Goodwill(I - II)	~~W~~	1,465

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2022 and 2021 (Unaudited)

10.	Business Combinations, Continued
(2)	2021, Continued
---	---
3)	Acquisition of YLP Inc. by T map Mobility Co., Ltd.:
---	---

T map Mobility Co., Ltd. obtained control over YLP Inc. by acquiring its 168,012 shares(100%). during the year ended December 31, 2021. The consideration transferred was ~~W~~79,000 million, among which ~~W~~55,598 million was paid in cash to acquire 118,242 shares (70.4%) and on June 29, 2021, T map Mobility Co., Ltd. issued 267,700 of its new common shares (with a fair value of ~~W~~23,402 million) to the shareholders of YLP Inc. in exchange for the remaining 49,770 shares(29.6%) owned by those shareholders. The difference between the fair value of net assets acquired and the consideration transferred amounting to ~~W~~69,516 million was recognized as goodwill.

Identifiable assets acquired and liabilities assumed and goodwill were transferred to the spin-off company.

(i)	Summary of the acquiree
	Information of Acquiree
---	---
Corporate name	YLP Inc.
Location	1740, Cheongwon-ro,<br>Pyeongtaek-si, Gyeonggi-do, Korea
CEO	Lee, Hyeok-Ju
Industry	Freight forwarders and cargo agents
(ii)	Considerations transferred and identifiable assets acquired and liabilities assumed at the acquisition date are<br>as follows:
---	---
(In millions of won)
---	---	---	---
	Amounts
I. Consideration transferred:
Cash and cash equivalents	~~W~~	55,598
Fair value of shares of T map Mobility Co., Ltd.		23,402
II. Fair value of identifiable assets acquired and liabilities assumed:
Cash and cash equivalents		1,897
Financial instruments		4,000
Accounts receivable – trade and other, net		4,480
Property and equipment, net		431
Intangible assets, net		3,595
Other assets		325
Borrowings		(1,000	)
Accounts payable – trade and other		(3,542	)
Lease liabilities		(327	)
Other liabilities		(48	)
Deferred tax liabilities		(327	)
		9,484
III. Goodwill(I - II)	~~W~~	69,516

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2022 and 2021 (Unaudited)

10.	Business Combinations, Continued
(2)	2021, Continued
---	---
4)	Acquisition of Rokmedia Co., Ltd. by One Store Co., Ltd.:
---	---

One Store Co., Ltd. obtained control over Rokmedia Co., Ltd. by acquiring its 60,000 shares (100%) for the year ended December 31, 2021. The consideration transferred was ~~W~~40,000 million in cash, and the difference between the fair value of net assets acquired and the consideration transferred amounting to ~~W~~33,641 million was recognized as goodwill.

Identifiable assets acquired and liabilities assumed and goodwill were transferred to the spin-off company.

(i)	Summary of the acquiree
	Information of Acquiree
---	---
Corporate name	Rokmedia Co., Ltd.
Location	3^rd^ floor, 330, Seongam-ro, Mapo-gu, Seoul, Korea
CEO	Kang, Jun-Gyu / Kim,<br>Jeong-Su
Industry	Publishing and telecommunications retail business
(ii)	Considerations transferred and identifiable assets acquired and liabilities assumed at the acquisition date are<br>as follows:
---	---
(In millions of won)
---	---	---	---
	Amounts
I. Consideration transferred:
Cash and cash equivalents	~~W~~	40,000
II. Fair value of identifiable assets acquired and liabilities assumed:
Cash and cash equivalents		719
Financial instruments		2,170
Accounts receivable – trade and other, net		1,374
Inventories		933
Other assets		3,212
Short-term loans, net		30
Property and equipment, net		792
Intangible assets, net		2,677
Accounts payable – trade and other		(1,885	)
Contract liabilities		(1,401	)
Borrowings		(1,485	)
Provisions		(385	)
Lease liabilities		(56	)
Other liabilities		(111	)
Deferred tax liabilities		(135	)
Income tax payable		(90	)
		6,359
III. Goodwill(I - II)	~~W~~	33,641

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2022 and 2021 (Unaudited)

10.	Business Combinations, Continued
(2)	2021, Continued
---	---
5)	Acquisition of GOOD SERVICE Co., Ltd. by T map Mobility Co., Ltd.:
---	---

T map Mobility Co., Ltd. obtained control by acquiring 2,000 shares (100%) of GOOD SERVICE Co., Ltd. for the year ended December 31, 2021. The consideration transferred was ~~W~~10,000 million in cash and the difference between the fair value of net assets acquired and the consideration transferred amounting to ~~W~~4,844 million was recognized as goodwill.

Identifiable assets acquired, liabilities assumed and goodwill were transferred to spin-off company.

(i)	Summary of the acquiree
	Information of Acquiree
---	---
Corporate name	GOOD SERVICE Co., Ltd.
Location	4^th^ floor, 54, Daeheung-ro, Mapo-gu, Seoul, Korea
CEO	Kim, Seung-Wook
Industry	Surrogate driving service business and related business
(ii)	Considerations transferred, identifiable assets acquired and liabilities assumed at the acquisition date are as<br>follows:
---	---
(In millions of won)
---	---	---	---
	Amounts
I. Consideration transferred:
Cash and cash equivalents	~~W~~	10,000
II. Fair value of identifiable assets acquired and liabilities assumed:
Cash and cash equivalents		1,328
Financial instruments		116
Accounts receivable – trade and other, net		1,881
Property and equipment, net		116
Intangible assets, net		3,492
Accounts payable – trade and other		(883	)
Other liabilities		(85	)
Deferred tax liabilities		(696	)
Lease liabilities		(113	)
		5,156
III. Goodwill(I - II)	~~W~~	4,844

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2022 and 2021 (Unaudited)

11.	Investments in Associates and Joint Ventures
(1)	Investments in associates and joint ventures accounted for using the equity method as of September 30,<br>2022 and December 31, 2021 are as follows:
---	---
(In millions of won)			September 30, 2022				December 31, 2021
---	---	---	---	---	---	---	---	---	---	---
	Country		Ownership<br>(%)		Carryingamount		Ownership(%)		Carryingamount
Investments in associates:
SK China Company Ltd.		China		27.3	~~W~~	946,243		27.3	~~W~~	793,754
Korea IT Fund(*1)		Korea		63.3		329,547		63.3		339,976
HanaCard Co., Ltd.(*2)		Korea		—		—		15.0		349,866
UniSK		China		49.0		22,603		49.0		19,156
SK Technology Innovation Company		Cayman Islands		49.0		74,180		49.0		86,301
SK MENA Investment B.V.		Netherlands		32.1		18,454		32.1		15,343
SK Latin America Investment S.A.		Spain		32.1		11,729		32.1		14,004
SK South East Asia Investment Pte. Ltd.		Singapore		20.0		415,886		20.0		348,782
Pacific Telecom Inc.(*3)		USA		15.0		52,440		15.0		43,789
S.M. Culture & Contents Co., Ltd.		Korea		23.1		59,251		23.1		60,261
Digital Games International Pte. Ltd.(*3,4)		Singapore		16.3		639		33.3		2,208
Invites Healthcare Co., Ltd.		Korea		31.1		14,641		27.1		26,474
Nam Incheon Broadcasting Co., Ltd.		Korea		27.3		13,284		27.3		12,525
Home Choice Corp.(*3)		Korea		17.8		2,665		17.8		3,052
Konan Technology Inc		Korea		20.8		8,571		26.5		3,639
CMES Inc.(*3,5)		Korea		7.7		900		—		—
12CM JAPAN and others(*3,6)		—		—		78,183		—		68,966
					~~W~~	2,044,216			~~W~~	2,188,096
Investments in joint ventures:
Finnq Co., Ltd. (*7)		Korea		—		—		49.0		7,255
UTC Kakao-SK Telecom ESG Fund(*8)		Korea		48.2		5,764		48.2		2,000
						5,764				9,255
					~~W~~	2,049,980			~~W~~	2,197,351
(*1)	Investment in Korea IT Fund was classified as investment in associates as the Group does not have control over<br>the investee under the contractual agreement with other shareholders.
---	---
(*2)	The Group disposed the entire shares of HanaCard Co., Ltd. to Hana Financial Group Inc. for<br>~~W~~330,032 million in cash from which it recognized ~~W~~48,693 million of loss relating to investments in associates for the nine-month period ended September 30, 2022.
---	---
(*3)	These investments were classified as investments in associates as the Group can exercise significant influence<br>through its right to appoint the members of the Board of Directors even though the Group has less than 20% of equity interests.
---	---
(*4)	The Group disposed the shares of Digital Games International Pte. Ltd. (~~W~~1,118 million) for<br>the nine-month period ended September 30, 2022.
---	---

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2022 and 2021 (Unaudited)

11.	Investments in Associates and Joint Ventures, Continued
(1)	Investments in associates and joint ventures accounted for using the equity method as of September 30,<br>2022 and December 31, 2021 are as follows, Continued:
---	---
(*5)	As the Group obtained significant influence over the investee, ~~W~~900 million of financial<br>assets at FVOCI are reclassified to investments in associates for the nine-month period ended September 30, 2022.
---	---
(*6)	The Group additionally contributed ~~W~~2,000 million in cash to Smart SKT Infinitum Game<br>Fund for the nine-month period ended September 30, 2022. In addition, the Group disposed the shares of Start-up Win-Win Fund (~~W~~4,850 million) at<br>~~W~~5,800 million in cash from which it recognized ~~W~~950 million of gain relating to investments in associates and disposed the shares of Daekyo Wipoongdangdang Contents Korea Fund (~~W~~1,080<br>million) at ~~W~~1,080 million in cash. Also, the Group newly invested ~~W~~2,000 million in cash to KB ESG Fund of three telecommunications companies the for the nine-month period ended September 30, 2022.<br>
---	---
(*7)	The Group disposed the entire shares of Finnq Co., Ltd. to Hana Financial Group Inc. for<br>~~W~~5,733 million in cash from which it recognized ~~W~~1,043 million of gain relating to investments in joint ventures for the nine-month period ended September 30, 2022.
---	---
(*8)	The Group additionally contributed ~~W~~4,000 million in cash for the nine-month period ended<br>September 30, 2022, but there is no change in the ownership interest. Meanwhile, these investments were classified as investments in joint ventures as the Group has a joint control pursuant to the agreement with the other shareholders.<br>
---	---
(2)	The market value of investments in listed associates as of September 30, 2022 and December 31, 2021<br>are as follows:
---	---
(In millions of won, except for share data)
---	---	---	---	---	---	---	---	---	---	---	---	---
	September 30, 2022						December 31, 2021
	Market priceper share<br>(in won)		Number ofshares		Marketvalue		Market price<br>per share<br>(in won)		Number ofshares		Marketvalue
S.M.Culture & Contents Co.,Ltd.	~~W~~	3,100		22,033,898		68,305		4,485		22,033,898		98,822
Konan Technology Inc.		24,850		1,179,580		29,313		—		—		—

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2022 and 2021 (Unaudited)

11.	Investments in Associates and Joint Ventures, Continued
(3)	The financial information of significant associates as of and for the<br>nine-month period ended September 30, 2022 and as of and for the year ended December 31, 2021 are as follows:
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---	---
	Korea IT<br>Fund			SK China<br>Company Ltd.			SK South East AsiaInvestment Pte. Ltd.
	As of September 30, 2022
Current assets	~~W~~	103,857			1,108,846			161,402
Non-current assets		416,480			2,441,209			3,487,071
Current liabilities		—			50,594			521,576
Non-current liabilities		—			335,176			—
	For the nine-month period ended September 30, 2022
Revenue	~~W~~	15,853			41,578			52,920
Profit (loss) for the period		7,938			(16,929	)		(6,418	)
Other comprehensive loss		(4,811	)		(2,787	)		(26,886	)
Total comprehensive income (loss)		3,127			(19,716	)		(33,304	)
(In millions of won)
---	---	---	---	---	---	---	---	---	---	---
	HanaCard<br>Co., Ltd.		Korea IT<br>Fund			SK China<br>Company Ltd.		SK South East AsiaInvestment Pte. Ltd.
	As of December 31, 2021
Current assets	~~W~~	9,130,044		117,172			1,124,219		133,110
Non-current assets		465,333		419,632			1,849,102		2,853,184
Current liabilities		1,281,783		—			53,199		412,962
Non-current liabilities		6,284,587		—			316,470		—
	2021
Revenue	~~W~~	1,270,568		58,741			80,241		9,945
Profit (loss) for the year		250,484		50,107			933,475		(188,678	)
Other comprehensive income (loss)		909		(6,847	)		326,661		304,700
Total comprehensive income		251,393		43,260			1,260,136		116,022

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2022 and 2021 (Unaudited)

11.	Investments in Associates and Joint Ventures, Continued
(4)	Reconciliations of financial information of significant associates to carrying amounts of investments in<br>associates in the consolidated financial statements as of September 30, 2022 and December 31, 2021 are as follows:
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---	---	---
	September 30, 2022
	Net assets		Ownershipinterests (%)		Net assetsattributable tothe ownershipinterests		Cost-book valuedifferentials		Carrying amount
Korea IT Fund	~~W~~	520,337		63.3		329,547		—		329,547
SK China Company Ltd.		3,164,285		27.3		862,939		83,304		946,243
SK South East Asia Investment Pte. Ltd.(*)		2,079,430		20.0		415,886		—		415,886
(In millions of won)
---	---	---	---	---	---	---	---	---	---	---
	December 31, 2021
	Net assets		Ownershipinterests (%)		Net assetsattributable tothe ownershipinterests		Cost-book valuedifferentials		Carrying amount
HanaCard Co., Ltd.	~~W~~	2,029,007		15.0		304,351		45,515		349,866
Korea IT Fund		536,804		63.3		339,976		—		339,976
SK China Company Ltd.(*)		2,603,336		27.3		709,961		83,793		793,754
SK South East Asia Investment Pte. Ltd.(*)		1,743,908		20.0		348,782		—		348,782
(*)	Net assets of these entities represent net assets excluding those attributable to their non-controlling interests.
---	---

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2022 and 2021 (Unaudited)

11.	Investments in Associates and Joint Ventures, Continued
(5)	Changes in investments in associates and joint ventures accounted for using the equity method for the<br>nine-month periods ended September 30, 2022 and 2021 are as follows:
---	---
(In millions of won)	For the nine-month period ended September 30, 2022
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	Beginningbalance		Acquisitionand Disposal			Share ofprofit<br>(loss)			Other<br>compre-hensive<br>income (loss)			Otherincrease<br>(decrease)			Endingbalance
Investments in associates:
SK China Company Ltd.	~~W~~	793,754		—			(16,847	)		169,336			—			946,243
Korea IT Fund (*1)		339,976		—			5,028			(3,047	)		(12,410	)		329,547
HanaCard Co., Ltd.		349,866		(368,389	)		17,749			774			—			—
UniSK		19,156		—			1,804			1,643			—			22,603
SK Technology Innovation Company		86,301		—			(26,630	)		14,509			—			74,180
SK MENA Investment B.V.		15,343		—			(33	)		3,144			—			18,454
SK Latin America Investment S.A.		14,004		—			(2,802	)		527			—			11,729
SK South East Asia Investment Pte. Ltd.		348,782		—			(185	)		67,289			—			415,886
Pacific Telecom Inc.		43,789		—			2,183			6,468			—			52,440
S.M. Culture & Contents Co., Ltd.		60,261		46			(1,056	)		—			—			59,251
Digital Games International Pte. Ltd.		2,208		(1,118	)		(562	)		111			—			639
Invites Healthcare Co., Ltd.		26,474		—			(11,759	)		(74	)		—			14,641
Nam Incheon Broadcasting Co., Ltd.(*1)		12,525		—			895			—			(136	)		13,284
Home Choice Corp.		3,052		—			(388	)		1			—			2,665
Konan Technology Inc		3,639		3,788			(442	)		1,636						8.571
CMES Inc.(*2)		—		—			—			—			900			900
12CM JAPAN and others(*3)		68,966		(137	)		1,599			2,755			—			73,183
		2,188,096		(365,860	)		(31,446	)		265,072			(11,646	)		2,044,216
Investments in joint ventures:
Finnq Co., Ltd.		7,255		(3,840	)		(3,617	)		202			—			—
UTC Kakao-SK Telecom ESG Fund		2,000		4,000			(236	)		—			—			5,764
		9,255		160			(3,853	)		202			—			5,764
	~~W~~	2,197,351		(365,700	)		(35,299	)		265,274			(11,646	)		2,049,980
(*1)	Dividends received from the associates are deducted from the carrying amount for the nine-month period ended<br>September 30, 2022.
---	---
(*2)	As the Group obtained significant influence over the investee, ~~W~~900 million of financial<br>assets at FVOCI are reclassified to investments in associates for the nine-month period ended September 30, 2022.
---	---
(*3)	The acquisition for the nine-month period ended September 30, 2022 includes<br>~~W~~2,000 million of cash investment in Smart SKT Infinitum Game Fund, ~~W~~2,000 million of cash investment in KB ESG Fund of three telecommunications companies and ~~W~~12 million of cash<br>investment in SK VENTURE CAPITAL, LLC. The disposal for the nine-month period ended September 30, 2022 includes ~~W~~4,850 million relating to disposal of the part of shares of Start-up Win-Win Fund and ~~W~~1,080 million relating to disposal of the part of shares of Daekyo Wipoongdangdang Contents Korea Fund.
---	---

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2022 and 2021 (Unaudited)

11.	Investments in Associates and Joint Ventures, Continued
(5)	Changes in investments in associates and joint ventures accounted for using the equity method for the<br>nine-month periods ended September 30, 2022 and 2021 are as follows, Continued:
---	---
(In millions of won)	For the nine-month period ended September 30, 2021
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	Beginningbalance		Acquisitionand Disposal			Share ofprofit<br>*(loss)(4)**			Other<br>compre-hensive<br>income (loss)			Otherincrease(decrease)			Endingbalance
Investments in associates:
SK China Company Ltd.	~~W~~	555,133		—			282,319			69,354			—			906,806
Korea IT Fund(*1)		323,294		—			12,654			(2,953	)		(10,716	)		322,279
HanaCard Co., Ltd.		314,930		—			27,965			(81	)		—			342,814
SK Telecom CS T1 Co., Ltd.		53,010		4,888			(8,770	)		(575	)		—			48,553
NanoEnTek, Inc.		43,190		—			1,836			(86	)		—			44,940
UniSK		15,700		—			1,078			1,566			—			18,344
SK Technology Innovation Company		41,579		—			21,118			4,748			—			67,445
SK MENA Investment B.V.		14,043		—			(2	)		1,241			—			15,282
SK hynix Inc.(*1)		12,251,861		19,482			1,326,435			193,017			(170,937	)		13,619,858
SK Latin America Investment S.A.		13,930		—			(49	)		373			—			14,254
Grab Geo Holdings PTE. LTD.		30,063		—			—			—			—			30,063
SK South East Asia Investment Pte. Ltd.		311,990		—			7,855			48,106			—			367,951
Pacific Telecom Inc.		39,723		—			1,000			2,344			—			43,067
S.M. Culture & Contents Co., Ltd.		62,248		(195	)		(2,307	)		456			—			60,202
Content Wavve Co., Ltd.		75,803		100,000			(20,716	)		—			—			155,087
Hello Nature Co., Ltd.(*2)		11,969		9,980			(9,847	)		(1	)		(1,730	)		10,371
Digital Games International Pte. Ltd.		6,449		—			(3,436	)		259			—			3,272
Invites Healthcare Co., Ltd.		25,536		7,000			(4,843	)		(36	)		—			27,657
Nam Incheon Broadcasting Co., Ltd.(*1)		10,902		—			1,357			—			(136	)		12,123
NANO-X IMAGING LTD.		28,484		(47	)		(2,049	)		—			2,437			28,825
Home Choice Corp.		3,585		—			(390	)		—			—			3,195
Carrot General Insurance Co., Ltd.		13,469		12,289			(6,666	)		(358	)		—			18,734
Bertis Inc.		—		15,739			(423	)		—			—			15,316
UT LLC		—		86,319			(7,773	)		—			—			78,546
SPARKPLUS		—		34,166			—			—			—			34,166
12CM JAPAN and others(*3)		65,750		5,012			(3,851	)		6,973			(495	)		73,389
		14,312,641		294,633			1,612,495			324,347			(181,577	)		16,362,539
Investments in joint ventures:
Dogus Planet, Inc.		15,071		—			(6,990	)		(1,447	)		—			6,634
Finnq Co., Ltd.		13,342		—			(4,376	)		(118	)		—			8,848
NEXTGEN BROADCAST SERVICES CO., LLC		5,850		9,048			(1,276	)		—			892			14,514
NEXTGEN ORCHESTRATION, LLC		1,600		—			—			—			142			1,742
Techmaker GmbH		5,609		—			(94	)		145			—			5,660
Korea Content Platform, Inc.		—		30,191			—			—			1,439			31,630
UTC Kakao-SK Telecom ESG Fund		—		2,000			—			—			—			2,000
		41,472		41,239			(12,736	)		(1,420	)		2,473			71,028
	~~W~~	14,354,113		335,872			1,599,759			322,927			(179,104	)		16,433,567

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2022 and 2021 (Unaudited)

11.	Investments in Associates and Joint Ventures, Continued
(5)	Changes in investments in associates and joint ventures accounted for using the equity method for the<br>nine-month periods ended September 30, 2022 and 2021 are as follows, Continued:
---	---
(*1)	Dividends received from the associates are deducted from the carrying amount for the nine-month period ended<br>September 30, 2021.
---	---
(*2)	The Group recognized ~~W~~1,730 million of impairment loss for the investments in Hello<br>Nature Co., Ltd. for the nine-month period ended September 30, 2021.
---	---
(*3)	The acquisition for the nine-month period ended September 30, 2021 includes<br>~~W~~1,000 million of cash investment in Studio Yesone Co., Ltd. and ~~W~~1,000 million of cash investment in SONNORI Corp. and ~~W~~679 million relating to contribution of WALDEN SKT VENTURE<br>FUND and ~~W~~1,500 million of new cash investment in Smart SKT Infinitum Game Fund and ~~W~~800 million of cash investment in Laguna Dynamic Game&Contents Fund. The disposal for the nine-month period ended<br>September 30, 2021 includes ~~W~~334 million relating to disposal of the part of shares of KDX Korea Data Exchange.
---	---
(*4)	Includes amounts related to discontinued operations.
---	---
(6)	The Group discontinued the application of equity method to the following investees due to their carrying<br>amounts being reduced to zero. The details of cumulative unrecognized equity method losses as of September 30, 2022 are as follows:
---	---
(In millions of won)	Unrecognized loss				Unrecognized change in equity
---	---	---	---	---	---	---	---	---	---
	For the nine-monthperiod ended<br>September 30, 2022		Cumulativeloss		For the nine-monthperiod ended<br>September 30, 2022		Cumulativeloss
Wave City Development Co., Ltd.	~~W~~	73		8,616		—		—
Daehan Kanggun BcN Co., Ltd. and others		—		5,780		—		(124	)
	~~W~~	73		14,396		—		(124	)

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2022 and 2021 (Unaudited)

12.	Property and Equipment

Changes in property and equipment for the nine-month periods ended September 30, 2022 and 2021 are as follows:

(In millions of won)
	For the nine-month period ended September 30, 2022
	Beginningbalance		Acquisition		Disposal			Transfer			Depreciation			*Businesscombination()**		Endingbalance
Land	~~W~~	972,800		79		(175	)		32,443			—			2,789		1,007,936
Buildings		794,453		902		(554	)		31,582			(41,012	)		8,583		793,954
Structures		291,279		740		(20	)		9,192			(28,679	)		—		272,512
Machinery		7,997,927		281,718		(38,360	)		1,183,005			(1,721,417	)		—		7,702,873
Other		487,716		487,156		(661	)		(484,892	)		(77,839	)		8,554		420,034
Right-of-use<br>assets		1,559,333		374,677		(39,546	)		(21,600	)		(302,720	)		6,331		1,576,475
Construction in progress		767,751		741,560		(1,709	)		(836,623	)		—			881		671,860
	~~W~~	12,871,259		1,886,832		(81,025	)		(86,893	)		(2,171,667	)		27,138		12,445,644
(*)	Includes assets from the acquisition of SK m&service Co., Ltd. by PS&Marketing Corporation, a<br>subsidiary of the Parent Company.
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	For the nine-month period ended September 30, 2021
	Beginningbalance		Acquisition		Disposal			Transfer			*Depreciation()**			Businesscombination		Endingbalance
Land	~~W~~	1,039,323		634		(21,164	)		25,367			—			—		1,044,160
Buildings		858,606		3,275		(9,615	)		40,457			(41,982	)		639		851,380
Structures		317,403		811		(6,115	)		13,085			(28,516	)		—		296,668
Machinery		8,376,212		310,164		(27,343	)		1,243,274			(1,808,782	)		—		8,093,525
Other		653,616		561,531		(1,791	)		(416,748	)		(146,842	)		193		649,959
Right-of-use<br>assets		1,472,035		879,822		(375,700	)		—			(330,762	)		507		1,645,902
Construction in progress		659,882		877,797		(240	)		(978,705	)		—			—		558,734
	~~W~~	13,377,077		2,634,034		(441,968	)		(73,270	)		(2,356,884	)		1,339		13,140,328
(*)	Includes amounts related to discontinued operations.
---	---
13.	Investment Property
---	---
(1)	Changes in investment property for the nine-month period ended September 30, 2022 are as follows:<br>
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---	---
	For the nine-month period ended September 30, 2022
	Beginning balance		Transfer		Depreciation			Ending balance
Land	~~W~~	6,071		232		—			6,303
Buildings		7,353		346		(547	)		7,152
Right-of-use<br>assets		9,610		4,314		(1,257	)		12,667
	~~W~~	23,034		4,892		(1,804	)		26,122
(2)	The Group recognized lease income of ~~W~~3,815 million for the nine-month period ended<br>September 30, 2022 from investment property.
---	---

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2022 and 2021 (Unaudited)

14.	Leases
(1)	Details of the right-of-use<br>assets as of September 30, 2022 and December 31, 2021 are as follows:
---	---
(In millions of won)
---	---	---	---	---
	September 30, 2022		December 31, 2021
Land, buildings and structures	~~W~~	1,397,813		1,392,925
Others		178,662		166,408
	~~W~~	1,576,475		1,559,333
(2)	Details of amounts recognized in the interim consolidated statements of profit or loss for the nine-month<br>periods ended September 30, 2022 and 2021 as a lessee are as follows:
---	---
(In millions of won)
---	---	---	---	---
	For the nine-month period ended
	September 30, 2022		*September 30, 2021()**
Depreciation of<br>right-of-use assets:
Land, buildings and structures	~~W~~	262,063		275,570
Others		40,657		55,192
		302,720		330,762
Interest expense on lease liabilities	~~W~~	20,867		18,070
(*)	Includes amounts related to discontinued operations.
---	---

Expenses related to short-term leases and leases of low-value assets the Group recognized are immaterial.

(3)	The total cash outflows due to lease payments for the nine-month periods ended September 30, 2022 and 2021<br>amounted to ~~W~~330,953 million and ~~W~~361,100 million, respectively. Meanwhile, the amounts for the nine-month period ended September 30, 2021 include cash flows from discontinued operations.<br>

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2022 and 2021 (Unaudited)

15.	Intangible Assets
(1)	Changes in intangible assets for the nine-month periods ended September 30, 2022 and 2021 are as follows:<br>
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	For the nine-month period ended September 30, 2022
	Beginningbalance		Acquisition		Disposal			Transfer			Amortization			Impairment			*Businesscombination()**		Endingbalance
Frequency usage rights	~~W~~	2,559,689		—		—			—			(357,585	)		—			—		2,202,104
Land usage rights		2,732		—		—			—			(1,201	)		—			—		1,531
Industrial rights		55,954		9,022		(683	)		(103	)		(3,257	)		—			3		60,936
Development costs		200		—		—			—			(426	)		—			657		431
Facility usage rights		17,874		907		(1	)		126			(3,502	)		—			—		15,404
Customer relations		327,257		—		—			—			(20,309	)		—			—		306,948
Club memberships(*1)		88,494		2,669		(6,595	)		—			—			(360	)		1,389		85,597
Other(*2)		817,569		29,658		(382	)		91,967			(260,739	)		—			10,413		688,486
	~~W~~	3,869,769		42,256		(7,661	)		91,990			(647,019	)		(360	)		12,462		3,361,437
(*)	Includes assets from the acquisition of SK m&service Co., Ltd. by PS&Marketing Corporation, a<br>subsidiary of the Parent Company.
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	For the nine-month period ended September 30, 2021
	Beginningbalance		Acquisition		Disposal			Transfer		*Amortization(3)**			Businesscombination		Ending<br>balance
Frequency usage rights	~~W~~	1,932,765		219,577		—			—		(386,809	)		—		1,765,533
Land usage rights		4,720		145		(67	)		—		(1,611	)		—		3,187
Industrial rights		71,442		3,220		(8	)		284		(4,546	)		—		70,392
Development costs		9,364		1,100		(150	)		—		(2,869	)		—		7,445
Facility usage rights		21,880		868		(7	)		103		(4,552	)		—		18,292
Customer relations		919,863		5,140		(451	)		—		(43,617	)		636		881,571
Club memberships(*1)		106,865		3,129		(4,819	)		—		—			—		105,175
Brands(*1)		374,096		—		—			—		—			—		374,096
Other(*2)		995,199		36,059		(4,310	)		105,583		(321,241	)		2,903		814,193
	~~W~~	4,436,194		269,238		(9,812	)		105,970		(765,245	)		3,539		4,039,884
(*1)	Club memberships and brands are classified as intangible assets with indefinite useful lives and are not<br>amortized.
---	---
(*2)	Other intangible assets primarily consist of computer software and others.
---	---
(*3)	Includes amounts related to discontinued operations.
---	---

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2022 and 2021 (Unaudited)

15.	Intangible Assets, Continued
(2)	Details of frequency usage rights as of September 30, 2022 are as follows:
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---
	As of September 30, 2022
	Amount		Description		Commencement ofamortization		Completion ofamortization
800MHz license	~~W~~	164,683		LTE service		Jul. 2021		Jun. 2026
1.8GHz license		440,763		LTE service		Dec. 2021		Dec. 2026
2.6GHz license		516,025		LTE service		Sept. 2016		Dec. 2026
2.1GHz license		331,256		W-CDMA and LTE service		Dec. 2021		Dec. 2026
3.5GHz license		742,704		5G service		Apr. 2019		Nov. 2028
28GHz license		6,673		5G service		Jan. 2021		Nov. 2023
	~~W~~	2,202,104
16.	Borrowings and Debentures
---	---
(1)	Short-term borrowings as of September 30, 2022 and December 31, 2021 are as follows:<br>
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---	---
	Lender	Annual<br>interest rate (%)		Maturity		September 30,<br>2022		December 31,<br>2021
Short-term borrowings (*)	Hana Financial Investment Co., Ltd.		4.50		Nov. 28, 2022		4,642		4,642
	DB Financial Investment Co., Ltd.		4.50		Nov. 28, 2022		2,785		2,785
	Shinhan Investment Corp.		4.45		Nov. 28, 2022		5,571		5,571
						~~W~~	12,998		12,998
(*)	PanAsia Semiconductor Materials LLC., a subsidiary of the Parent Company, has pledged its<br>~~W~~21,072 million of equity instruments at FVTPL on ~~W~~12,998 million of short-term loans as of September 30, 2022.
---	---

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2022 and 2021 (Unaudited)

16.	Borrowings and Debentures, Continued
(2)	Changes in long-term borrowings for the nine-month period ended September 30, 2022 are as follows:<br>
---	---
(In millions of won, thousands of other currencies)
---	---	---	---	---	---	---	---	---
	Lender	Annualinterest rate (%)		Maturity		Book value
Current						~~W~~	41,065
Non-current							353,122
As of January 1, 2022							394,187
New long-term borrowings:
	DBS Bank Ltd.		2.68		Mar. 10, 2025		200,000
	Credit Agricole CIB		3.30		Apr. 29, 2024		50,000
	Mizuho Bank, Ltd.		3.29		Nov. 27, 2023		100,000
							350,000
Repayments of long-term borrowings:
	Korea Development Bank(*1)		3M CD + 0.71		Dec. 21, 2022		(9,375	)
	Credit Agricole CIB(*1)		3M CD + 0.82		Dec. 14, 2023		(9,375	)
	Korea Development Bank		1.87		Feb. 10, 2026		(6,250	)
	Export Kreditnamnden		1.70		Apr. 29, 2022		(7,096	)
							(32,096	)
Other changes(*2)							391
Current(*3)							28,115
Non-current(*3)							684,367
As of September 30, 2022						~~W~~	712,482
(*1)	As of September 30, 2022, 3M CD rate is 3.24%.
---	---
(*2)	Other changes include the effects on foreign currency translation of long-term borrowings and changes in<br>present value discount for the nine-month period ended September 30, 2022.
---	---
(*3)	~~W~~18,779 million were reclassified from<br>non-current to current for the nine-month period ended September 30, 2022.
---	---

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2022 and 2021 (Unaudited)

16.	Borrowings and Debentures, Continued
(3)	Changes in debentures for the nine-month period ended September 30, 2022 are as follows:<br>
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---	---	---	---
	Purpose	Annual interestrate (%)		Maturity		Face value			Book value
Current						~~W~~	1,390,000			1,389,259
Non-current							7,058,250			7,037,424
As of January 1, 2022							8,448,250			8,426,683
Debentures newly issued:
Unsecured corporate bonds(*1)	Refinancing fund		2.58		Jan. 24, 2025		100,000			99,545
			2.92		Jan. 25, 2032		50,000			49,757
Unsecured corporate bonds	Debt repaying fund		3.80		Apr. 12, 2025		240,000			238,999
			3.84		Apr. 12, 2027		70,000			69,694
			3.78		Apr. 12, 2042		40,000			39,810
			4.00		Aug. 8, 2025		300,000			298,835
			4.00		Aug. 10, 2027		95,000			94,632
							895,000			891,272
Debentures repaid:
Unsecured corporate bonds	Operating and refinancing fund		2.40		Feb. 26, 2022		(100,000	)		(100,000	)
Unsecured corporate bonds	Operating fund		2.03		Mar. 6, 2022		(180,000	)		(180,000	)
Unsecured corporate bonds(*1)	Operating fund		2.26		Feb. 3, 2022		(150,000	)		(150,000	)
Unsecured corporate bonds(*1)	Refinancing fund		2.00		Mar. 26, 2022		(50,000	)		(50,000	)
Unsecured corporate bonds(*1)	Operating and refinancing fund		1.71		Sept. 23, 2022		(80,000	)		(80,000	)
Unsecured corporate bonds	Refinancing fund		2.17		Apr. 25, 2022		(120,000	)		(120,000	)
Unsecured corporate bonds	Operating and refinancing fund		1.40		Jul. 29, 2022		(120,000	)		(120,000	)
Unsecured corporate bonds	Operating and refinancing fund		3.30		Aug. 28, 2022		(140,000	)		(140,000	)
							(940,000	)		(940,000	)
Other changes(*2)							373,950			378,404
Current(*3)							2,427,840			2,425,575
Non-current(*3)							6,349,360			6,330,784
As of September 30, 2022						~~W~~	8,777,200			8,756,359

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2022 and 2021 (Unaudited)

16.	Borrowings and Debentures, Continued
(3)	Changes in debentures for the nine-month period ended September 30, 2022 are as follows, Continued:<br>
---	---
(*1)	Unsecured corporate bonds were issued by SK Broadband Co., Ltd., a subsidiary of the Parent Company.<br>
---	---
(*2)	Other changes include the effects on foreign currency translation of debentures and changes in discount on<br>issuance of debentures for the nine-month period ended September 30, 2022.
---	---
(*3)	~~W~~1,976,316 million were reclassified from<br>non-current to current for the nine-month period ended September 30, 2022.
---	---
17.	Long-term Payables – other
---	---
(1)	As of September 30, 2022 and December 31, 2021, details of long-term payables – other which<br>consist of payables related to the acquisition of frequency usage rights are as follows (See note 15):
---	---
(In millions of won)
---	---	---	---	---	---	---
	September 30,<br>2022			December 31,2021
Long-term payables – other	~~W~~	1,690,470			2,090,715
Present value discount on long-term payables – other		(59,065	)		(80,882	)
Current installments of long-term payables – other		(397,206	)		(398,823	)
Carrying amount at period end	~~W~~	1,234,199			1,611,010
(2)	The principal amounts of long-term payables – other repaid for the nine-month periods ended<br>September 30, 2022 and 2021 are ~~W~~400,245 and ~~W~~425,349 million, respectively. The repayment schedule of the principal amount of long-term payables – other related to acquisition of frequency usage<br>rights as of September 30, 2022 is as follows:
---	---
(In millions of won)
---	---	---
	Amount
Less than 1 year	~~W~~	400,245
1~3 years		738,300
3~5 years		460,538
More than 5 years		91,387
	~~W~~	1,690,470

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2022 and 2021 (Unaudited)

18.	Provisions

Changes in provisions for the nine-month periods ended September 30, 2022 and 2021 are as follows:

(In millions of won)
	For the nine-month period ended September 30, 2022																	As of September 30, 2022
	Beginningbalance		Increase		Utilization			Reversal			Other			Business<br>combi-nation		Endingbalance		Current		Non-current
Provision for restoration	~~W~~	114,731		5,040		(4,013	)		(574	)		27			991		116,202		72,763		43,439
Emission allowance		1,885		1,934		—			(1,545	)		—			—		2,274		2,274		—
Other provisions		10,379		3,189		(12,338	)		(72	)		(18	)		—		1,140		540		600
	~~W~~	126,995		10,163		(16,351	)		(2,191	)		9			991		119,616		75,577		44,039
(In millions of won)
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	For the nine-month period ended September 30, 2021																As of September 30, 2021
	Beginningbalance		Increase		Utilization			Reversal			Other		Businesscombi-nation		Endingbalance		Current		Non-current
Provision for restoration	~~W~~	113,653		10,665		(4,633	)		(399	)		111		—		119,397		62,651		56,746
Emission allowance		7,424		897		(1,091	)		(5,346	)		—		—		1,884		1,884		—
Other provisions(*)		29,800		2,226		(18,489	)		(546	)		—		385		13,376		1,378		11,998
	~~W~~	150,877		13,788		(24,213	)		(6,291	)		111		385		134,657		65,913		68,744
(*)	~~W~~76 million of current provisions are included in other provisions relating to SK Planet<br>Co., Ltd.’s onerous contracts.
---	---

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2022 and 2021 (Unaudited)

19.	Defined Benefit Liabilities (Assets)
(1)	Details of defined benefit liabilities (assets) as of September 30, 2022 and December 31, 2021 are as<br>follows:
---	---
(In millions of won)
---	---	---	---	---	---	---
	September 30, 2022			December 31, 2021
Present value of defined benefit obligations	~~W~~	1,042,119			1,035,016
Fair value of plan assets		(1,051,650	)		(1,040,286	)
Defined benefit assets(*)		(33,865	)		(18,427	)
Defined benefit liabilities		24,334			13,157
(*)	Since the Group entities neither have legally enforceable right nor intention to settle the defined benefit<br>obligations of the Group entities with defined benefit assets of other Group entities, defined benefit assets of the Group entities have been separately presented from defined benefit liabilities.
---	---
(2)	Changes in present value of defined benefit obligations for the nine-month periods ended September 30,<br>2022 and 2021 are as follows:
---	---
(In millions of won)	For the nine-month period ended
---	---	---	---	---	---	---
	September 30, 2022			September 30, 2021
Beginning balance	~~W~~	1,035,016			1,278,550
Current service cost		101,989			145,461
Interest cost		23,054			21,983
Remeasurement
- Demographic assumption		(7,332	)		—
- Financial assumption		(85,125	)		—
- Adjustment based on experience		449			(2,261	)
Business combinations		29,357			—
Benefit paid		(57,528	)		(84,244	)
Others		2,239			(44	)
Ending balance	~~W~~	1,042,119			1,359,445
(3)	Changes in fair value of plan assets for the nine-month periods ended September 30, 2022 and 2021 are as<br>follows:
---	---
(In millions of won)	For the nine-month period ended
---	---	---	---	---	---	---
	September 30, 2022			September 30, 2021
Beginning balance	~~W~~	1,040,286			1,127,163
Interest income		23,050			18,792
Remeasurement		(13,117	)		(3,231	)
Contributions		44,678			39,439
Benefit paid		(70,934	)		(84,296	)
Business combinations		26,618			—
Others		1,069			(1,701	)
Ending balance	~~W~~	1,051,650			1,096,166

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2022 and 2021 (Unaudited)

19.	Defined Benefit Liabilities (Assets), Continued
(4)	Total cost of defined benefit plan, which is recognized in profit or loss for the nine-month periods ended<br>September 30, 2022 and 2021 are as follows:
---	---
(In millions of won)	For the nine-month period ended
---	---	---	---	---
	September 30, 2022		*September 30, 2021()**
Current service cost	~~W~~	101,989		145,461
Net interest cost		4		3,191
	~~W~~	101,993		148,652
(*)	Includes amounts related to discontinued operations.
---	---
20.	Share Capital and Capital Surplus and Others
---	---
(1)	The Parent Company’s outstanding share capital consists entirely of common shares with a par value of<br>~~W~~100. The number of authorized, issued and outstanding common shares and the details of capital surplus and others as of September 30, 2022 and December 31, 2021 are as follows:
---	---
(In millions of won, except for share data)
---	---	---	---	---	---	---
	September 30, 2022			December 31, 2021
Number of authorized shares		670,000,000			670,000,000
Number of issued shares(*1)		218,833,144			218,833,144
Share capital:
Common shares(*2)	~~W~~	30,493			30,493
Capital surplus and others:
Paid-in surplus		1,771,000			1,771,000
Treasury shares		(36,702	)		(57,314	)
Hybrid securities(*3)		398,759			398,759
Share option(Note 21)		3,413			47,166
Others(*4)		(13,674,630	)		(13,783,337	)
	~~W~~	(11,538,160	)		(11,623,726	)
(*1)	As a result of stock split and spin-off for the year ended<br>December 31, 2021, the number of shares that the Parent Company is allowed to issue under article of incorporation changed from 220,000,000 shares with a par value of ~~W~~500 to 670,000,000 shares with a par value of<br>~~W~~100.
---	---
(*2)	The Parent Company’s share capital decreased by ~~W~~14,146 million as a result of spin-off for the year ended December 31, 2021. In addition, the Parent Company retired 8,685,568 treasury shares with reduction of its retained earnings before appropriation; as a result, the Parent<br>Company’s issued shares have decreased without change in share capital for the year ended December 31, 2021. Meanwhile, in 2002 and 2003, the Parent Company retired treasury shares with reduction of its retained earnings before<br>appropriation. As a result, the Parent Company’s issued shares have decreased without change in share capital.
---	---
(*3)	As there is no contractual obligation to deliver financial assets to the holders of hybrid bonds, the Group<br>classified the hybrid bonds as equity. When in liquidation or bankruptcy, these hybrid bonds are senior only to common shares.
---	---

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2022 and 2021 (Unaudited)

20.	Share Capital and Capital Surplus and Others, Continued
(1)	The Parent Company’s outstanding share capital consists entirely of common shares with a par value of<br>~~W~~100. The number of authorized, issued and outstanding common shares and the details of capital surplus and others as of September 30, 2022 and December 31, 2021 are as follows, Continued:
---	---
(*4)	Others primarily consist of the excess of the consideration paid by the Group over the carrying amount of net<br>assets acquired from entities under common control.
---	---
(2)	There were no changes in share capital for the nine-month periods ended September 30, 2022 and 2021, and<br>details of shares outstanding as of September 30, 2022 and 2021 are as follows:
---	---
(In shares)	September 30, 2022						September 30, 2021
---	---	---	---	---	---	---	---	---	---	---	---	---
	Issued<br>shares		Treasuryshares		Outstandingshares		Issued shares		Treasuryshares		Outstandingshares
Shares outstanding		218,833,144		801,091		218,032,053		72,060,143		899,500		71,160,643
(3)	Details of treasury shares as of September 30, 2022 and December 31, 2021 are as follows:<br>
---	---
(In millions of won, except for share data)
---	---	---	---	---
	September 30, 2022		December 31, 2021
Number of shares(*)		801,091		1,250,992
Acquisition cost	~~W~~	36,702		57,314
(*)	The Parent Company distributed 449,901 treasury shares (acquisition cost: ~~W~~20,612 million) as<br>bonus payment to the employees, resulting in gain on disposal of treasury shares of ~~W~~~~4~~,460 million and loss on disposal of treasury shares of ~~W~~1,065 million for the nine-month period ended<br>September 30, 2022.
---	---

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2022 and 2021 (Unaudited)

21.	Share-based Payment
(1)	The terms and conditions related to the grants of the share-based payment arrangement are as follows:<br>
---	---
1)	Equity-settled share-based payment arrangement
---	---
	Series
---	---	---	---	---	---	---	---
	1-2	1-3	2	3	4	*5(2)**	*6(2)**
Grant date	March 24, 2017		February 20,<br>2018	February 22,<br>2019	March 26,<br> <br>2019	March 26,<br> <br>2020	March 25,<br> <br>2021
Types of shares to be issued	Registered common shares
Grant method	Reissue of treasury shares, Cash settlement
Number of shares(*1) (in share)	67,320	67,320	4,124	8,907	5,266	376,313	87,794
Exercise price(*1) (in won)	53,298	57,562	50,824	53,052	50,862	38,452	50,276
Exercise period	Mar. 25, 2020<br>~<br>Mar. 24, 2023	Mar. 25, 2021<br>~<br>Mar. 24, 2024	Feb. 21, 2020<br>~<br>Feb. 20, 2023	Feb. 23, 2021<br>~<br>Feb. 22, 2024	Mar. 27, 2021<br>~<br>Mar. 26, 2024	Mar. 27, 2023<br>~<br>Mar. 26, 2027	Mar. 26, 2023<br>~<br>Mar. 25, 2026
Vesting conditions	3 years’<br>service from the<br>grant date	4 years’<br> <br>service from the<br>grant date	2 years’<br> <br>service from the<br>grant date	2 years’<br> <br>service from the<br>grant date	2 years’<br> <br>service from the<br>grant date	3 years’<br> <br>service from the<br>grant date	2 years’<br> <br>service from the<br>grant date
	Series
---	---	---
	7-1	*7-2(2)**
Grant date	March 25, 2022
Types of shares to be issued	Registered common shares
Grant method	Reissue of treasury shares,<br> <br>Cash settlement
Number of shares (in share)	295,275	109,704
Exercise price (in won)	56,860	56,860
Exercise period	Mar. 26, 2025<br>~<br>Mar. 25, 2029	Mar. 26, 2024<br>~<br>Mar. 25, 2027
Vesting conditions	3 years’<br>service from the<br>grant date	2 years’<br>service from the<br>grant date

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2022 and 2021 (Unaudited)

21.	Share-based Payment, Continued
(1)	The terms and conditions related to the grants of the share-based payment arrangement are as<br>follows, Continued:
---	---
2)	Cash-settled share-based payment arrangement
---	---
	Share appreciation rights of<br>*SK Telecom Co., Ltd.(3)**		Share appreciation rights of<br>*SK Square Co., Ltd.(3)**
---	---	---	---
Grant date	January 1, 2021	January 1, 2022	January 1, 2021
Grant method	Cash settlement
Number of shares (in shares)(*1)	183,246	338,525	118,456
Exercise price (in won)(*1)	50,276	56,860	50,276
Exercise period	Jan. 1, 2023 ~<br> <br>Mar. 28, 2024	Jan. 1, 2024 ~<br> <br>Mar. 25, 2025	Jan. 1, 2023 ~<br> <br>Mar. 28, 2024
Vesting conditions	2 years’ service<br> <br>from the grant date	2 years’ service<br> <br>from the grant date	2 years’ service<br> <br>from the grant date
(*1)	Number of shares granted and exercise price are adjusted as a result of stock split and spin-off for the year ended December 31, 2021, and the remaining part of 1-1st share option and 3rd share option were fully and partially exercised for the nine-month<br>period ended September 30, 2022.
---	---
(*2)	Parts of the grant that have not met the vesting conditions have been forfeited for the nine-month period ended<br>September 30, 2022 and for the year ended December 31, 2021.
---	---
(*3)	The Parent Company newly established the long-term incentive policy as part of the compensation related to the<br>growth of corporate value on the beginning of the prior year and granted cash settled share appreciation rights to executives. Meanwhile, parts of the grant that have not met the vesting conditions have been forfeited for the nine-month period ended<br>September 30, 2022.
---	---

As a result of spin-off during the year ended December 31, 2021, there are no share options granted by subsidiaries of the Parent Company as of September 30, 2022.

(2)	Share compensation expense recognized for the nine-month period ended September 30, 2022 and the remaining<br>share compensation expense to be recognized in subsequent periods are as follows:
(In millions of won)
---	---	---
	Share compensation expense
As of December 31, 2021	~~W~~	76,979
For the nine-month period ended September 30, 2022		77,576
In subsequent periods		3,967
	~~W~~	158,522

As of September 30, 2022, the carrying amount of liabilities recognized by the Parent Company in relation to the cash-settled share-based payment arrangement is ~~W~~1,374 million.

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2022 and 2021 (Unaudited)

21.	Share-based Payment, Continued
(3)	The Parent Company used binomial option pricing model in the measurement of the fair value of the share options<br>at grant date, and the inputs used in the model are as follows:
---	---
1)	Equity-settled share-based payment arrangement
---	---
(In won)	Parent Company
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	1-2			1-3			2			3			4			5			6			7-1			7-2
Risk-free interest rate		1.95	%		2.07	%		2.63	%		1.91	%		1.78	%		1.52	%		1.55	%		2.80	%		2.68	%
Estimated option’s life		6 years			7 years			5 years			5 years			5 years			7 years			5 years			7 years			5 years
Share price<br>(Closing price on the preceding day)(*)		52,500			52,500			48,700			51,800			50,600			34,900			49,800			57,300			57,300
Expected volatility		13.38	%		13.38	%		16.45	%		8.30	%		7.70	%		8.10	%		25.70	%		24.20	%		24.20	%
Expected dividends		3.80	%		3.80	%		3.70	%		3.80	%		3.90	%		5.70	%		4.00	%		3.40	%		3.40	%
Exercise price(*)		53,298			57,562			50,824			53,052			50,862			38,452			50,276			56,860			56,860
Per-share fair value of the option(*)		4,048			3,096			4,798			1,720			1,622			192			8,142			11,772			10,435
2)	Cash-settled share-based payment arrangement
---	---
(In won)	Share appreciation rights of<br>SK Telecom Co., Ltd.						Share appreciation rights of<br>SK Square Co., Ltd.
---	---	---	---	---	---	---	---	---	---
	Granted in 2021			Granted in 2022
Risk-free interest rate		3.87	%		4.17	%		3.87	%
Estimated option’s life		3.25 years			3.25 years			3.25 years
Share price on the remeasurement date		50,800			50,800			36,150
Expected volatility		23.60	%		23.60	%		23.60	%
Expected dividends		6.40	%		6.40	%		—
Exercise price(*)		50,276			56,860			50,276
Per-share fair value of the option		4,669			3,614			1,081
(*)	Share price (closing price on the preceding day), exercise price and<br>per-share fair value of the option are adjusted as a result of stock split and spin-off during the year ended December 31, 2021.
---	---

Meanwhile, the Board of Directors of the Parent Company resolved to dispose its treasury shares for the purpose of allotment of shares as bonus payment on October 12, 2021. The transaction is equity-settled share-based payment transactions in accordance with KIFRS 1102, and 505,350 shares (before stock split) were granted on October 12, 2021(grant date). 7,700 shares (before stock split) out of 505,350 shares (before stock split) were transferred to the spin-off company on November 1, 2021. Vesting conditions are 6 months from the grant date, and per-share fair value on the grant date are measured at ~~W~~300,500 that is closing price of common shares on the grant date before stock split and spin-off. The fair value of these share-based payment on the grant date is ~~W~~151,858 million, among which the awards with a fair value of ~~W~~9,935 million were transferred to the spin-off company.

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2022 and 2021 (Unaudited)

22.	Retained Earnings

Retained earnings as of September 30, 2022 and December 31, 2021 are as follows:

(In millions of won)
	September 30, 2022		December 31, 2021
Appropriated:
Legal reserve	~~W~~	22,320		22,320
Reserve for business expansion		9,631,138		11,631,138
Reserve for technology development		4,365,300		4,365,300
		13,996,438		15,996,438
Unappropriated		8,438,235		6,418,583
	~~W~~	22,456,993		22,437,341
23.	Reserves
---	---
(1)	Details of reserves, net of taxes, as of September 30, 2022 and December 31, 2021 are as follows:<br>
---	---
(In millions of won)
---	---	---	---	---
	September 30, 2022		December 31, 2021
Valuation gain on FVOCI	~~W~~	145,712		633,240
Other comprehensive income of investments in associates and joint ventures		316,970		53,770
Valuation gain on derivatives		23,947		33,918
Foreign currency translation differences for foreign operations		69,373		14,310
	~~W~~	556,002		735,238
(2)	Changes in reserves for the nine-month periods ended September 30, 2022 and 2021 are as follows:<br>
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	Valuation gain(loss) on financialassets at FVOCI			Othercomprehensiveincome (loss) ofinvestments inassociates and<br>joint ventures			Valuation gain(loss) onderivatives			Foreign currencytranslationdifferences forforeign operations			Total
Balance as of January 1, 2021	~~W~~	438,979			(392,333	)		17,615			(24,122	)		40,139
Changes, net of taxes		660,356			322,602			13,976			53,093			1,050,027
Balance as of September 30, 2021	~~W~~	1,099,335			(69,731	)		31,591			28,971			1,090,166
Balance as of January 1, 2022	~~W~~	633,240			53,770			33,918			14,310			735,238
Changes, net of taxes		(487,528	)		263,200			(9,971	)		55,063			(179,236	)
Balance as of September 30, 2022	~~W~~	145,712			316,970			23,947			69,373			556,002

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2022 and 2021 (Unaudited)

24.	Other Operating Expenses

Details of other operating expenses for the nine-month periods ended September 30, 2022 and 2021 are as follows:

(In millions of won)	2022				2021 (Restated)
	Three-monthperiod endedSeptember 30		Nine-monthperiod endedSeptember 30		Three-monthperiod endedSeptember 30		Nine-monthperiod endedSeptember 30
Communication	~~W~~	8,276		23,855		7,713		24,247
Utilities		111,308		294,560		98,483		263,506
Taxes and dues		8,620		44,231		3,138		29,195
Repair		108,392		312,520		106,639		307,095
Research and development		84,631		251,373		80,449		246,597
Training		10,750		25,308		7,605		21,026
Bad debt for accounts receivable – trade		7,689		23,062		7,317		20,770
Travel		3,988		10,265		1,640		4,806
Supplies and others		25,301		77,307		22,251		68,340
	~~W~~	368,955		1,062,481		335,235		985,582
25.	Other Non-Operating Income and Expenses
---	---

Details of other non-operating income and expenses for the nine-month periods ended September 30, 2022 and 2021 are as follows:

(In millions of won)	2022				2021 (Restated)
	Three-monthperiod endedSeptember 30		Nine-monthperiod endedSeptember 30		Three-monthperiod endedSeptember 30		Nine-monthperiod endedSeptember 30
Other non-operating Income:
Gain on disposal of property and equipment and intangible assets	~~W~~	2,905		11,682		9,334		15,911
Others		6,242		22,078		8,342		66,370
	~~W~~	9,147		33,760		17,676		82,281
Other non-operating Expenses:
Loss on disposal of property and equipment and intangible assets	~~W~~	2,423		6,279		10,655		16,881
Impairment loss on property and equipment and intangible assets		360		360		—		—
Donations		1,124		11,285		1,343		11,110
Bad debt for accounts receivable – other		824		2,267		918		1,316
Others		3,593		12,081		924		4,857
	~~W~~	8,324		32,272		13,840		34,164

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2022 and 2021 (Unaudited)

26.	Finance Income and Costs
(1)	Details of finance income and costs for the nine-month periods ended September 30, 2022 and 2021 are as<br>follows:
---	---
(In millions of won)	2022					2021 (Restated)
---	---	---	---	---	---	---	---	---	---
	Three-monthperiod endedSeptember 30			Nine-monthperiod endedSeptember 30		Three-monthperiod endedSeptember 30		Nine-monthperiod endedSeptember 30
Finance Income:
Interest income	~~W~~	14,467			35,739		8,602		25,818
Gain on sale of accounts receivable – other		—			1,043		7,528		21,794
Dividends		—			2,552		462		2,439
Gain on foreign currency transactions		7,668			15,613		1,916		3,670
Gain on foreign currency translations		(3,018	)		9,921		8,141		13,324
Gain relating to financial instruments at FVTPL		17,953			28,606		2,695		44,103
	~~W~~	37,070			93,474		29,344		111,148
(In millions of won)	2022					2021 (Restated)
	Three-monthperiod endedSeptember 30			Nine-monthperiod endedSeptember 30		Three-monthperiod endedSeptember 30		Nine-monthperiod endedSeptember 30
Finance Costs:
Interest expenses	~~W~~	75,625			225,426		71,035		208,244
Loss on sale of accounts receivable – trade		15,206			23,212		—		—
Loss on foreign currency transactions		5,161			11,916		1,246		4,354
Loss on foreign currency translations		(1,866	)		9,463		7,647		12,578
Loss relating to financial instruments at FVTPL		(4,063	)		14,471		16,601		110,578
	~~W~~	90,063			284,488		96,529		335,754
(2)	Details of interest income included in finance income for the nine-month periods ended September 30, 2022<br>and 2021 are as follows:
---	---
(In millions of won)	2022				*2021()**
---	---	---	---	---	---	---	---	---
	Three-monthperiod endedSeptember 30		Nine-monthperiod endedSeptember 30		Three-monthperiod endedSeptember 30		Nine-monthperiod endedSeptember 30
Interest income on cash equivalents and financial instruments	~~W~~	8,996		17,606		4,666		15,397
Interest income on loans and others		5,471		18,133		6,278		20,531
	~~W~~	14,467		35,739		10,944		35,928
(*)	Includes amounts related to discontinued operations.
---	---

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2022 and 2021 (Unaudited)

26.	Finance Income and Costs, Continued
(3)	Details of interest expenses included in finance costs for the nine-month periods ended September 30, 2022<br>and 2021 are as follows:
---	---
(In millions of won)	2022				*2021()**
---	---	---	---	---	---	---	---	---
	Three-monthperiod endedSeptember 30		Nine-monthperiod endedSeptember 30		Three-monthperiod endedSeptember 30		Nine-monthperiod endedSeptember 30
Interest expenses on borrowings	~~W~~	6,148		16,088		19,458		57,383
Interest expenses on debentures		55,970		162,406		56,881		168,653
Others		13,507		46,932		14,322		38,424
	~~W~~	75,625		225,426		90,661		264,460
(*)	Includes amounts related to discontinued operations.
---	---
(4)	Details of impairment losses for financial assets for the nine-month periods ended September 30, 2022 and<br>2021 are as follows:
---	---
(In millions of won)	2022				*2021()**
---	---	---	---	---	---	---	---	---
	Three-monthperiod endedSeptember 30		Nine-monthperiod endedSeptember 30		Three-monthperiod endedSeptember 30		Nine-monthperiod endedSeptember 30
Accounts receivable – trade	~~W~~	7,689		23,062		7,974		22,837
Other receivables		824		2,267		2,933		3,142
	~~W~~	8,513		25,329		10,907		25,979
(*)	Includes amounts related to discontinued operations.
---	---
27.	Income Tax Expense
---	---

Income tax expense was calculated by considering current tax expense, adjusted to changes in estimates related to prior periods, and deferred tax expense due to origination and reversal of temporary differences.

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2022 and 2021 (Unaudited)

28.	Earnings per Share

The Parent Company carried out stock split on October 28, 2021. Basic and diluted earnings per share for the nine-month period ended September 30, 2021 has been retroactively adjusted to reflect the effect of the stock split.

(1)	Basic earnings per share
1)	Basic earnings per share for the nine-month periods ended September 30, 2022 and 2021 are calculated as<br>follows:
---	---
(In millions of won, except for share data and basic earnings per share)
---	---	---	---	---	---	---	---	---	---	---	---	---
	2022						2021(Restated)
	Three-monthperiod endedSeptember 30			Nine-monthperiod endedSeptember 30			Three-monthperiod endedSeptember 30			Nine-monthperiod endedSeptember 30
Basic earnings per share attributable to owners of the ParentCompany:												****
Profit from continuing operations attributable to owners of the Parent Company	~~W~~	234,628			699,743			256,915			1,024,844
Interest on hybrid bonds		(3,692	)		(11,075	)		(3,692	)		(11,075	)
Profit from continuing operation attributable to owners of the Parent Company on common<br>shares		230,936			688,668			253,223			1,013,769
Profit of discontinued operations attributable to owners of the Parent Company on common<br>shares		—			—			527,265			1,083,386
Weighted average number of common shares outstanding		218,032,053			217,981,832			355,803,215			355,810,945
Basic earnings per share (in won)
Continuing operations	~~W~~	1,059			3,159			712			2,849
Discontinued operations		—			—			1,482			3,045

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2022 and 2021 (Unaudited)

28.	Earnings per Share, Continued
(1)	Basic earnings per share, Continued
---	---
2)	The weighted average number of common shares outstanding for the nine-month periods ended September 30,<br>2022 and 2021 are calculated as follows:
---	---
(In shares)	Number ofcommon shares				Weighted average number of<br>common shares
---	---	---	---	---	---	---	---	---	---	---
				Three-month periodended September 30				Nine-month periodended September 30
Issued shares as of January 1, 2022		218,833,144				218,833,144			218,833,144
Treasury shares as of January 1, 2022		(1,250,992	)			(1,250,992	)		(1,250,992	)
Disposal of treasury shares		449,901				449,901			399,680
Weighted average number of common shares outstanding as of September 30, 2022		218,032,053				218,032,053			217,981,832
(In shares)	Number ofcommon shares				Weighted average number of<br>common shares
---	---	---	---	---	---	---	---	---	---	---
				Three-month periodended September 30				Nine-month periodended September 30
Issued shares as of January 1, 2021		403,728,555				403,728,555			403,728,555
Treasury shares as of January 1, 2021		(47,092,790	)			(47,092,790	)		(47,092,790	)
Acquisition of treasury shares		(1,440,000	)			(1,440,000	)		(1,357,580	)
Disposal of treasury shares		607,450				607,450			532,760
Weighted average number of common shares outstanding as of September 30, 2021		355,803,215				355,803,215			355,810,945
(2)	Diluted earnings per share
---	---
1)	Diluted earnings per share for the nine-month periods ended September 30, 2022 and 2021 are calculated as<br>follows:
---	---
(In millions of won, except for share data and diluted earnings per share)
---	---	---	---	---	---	---	---	---
	2022				2021
	Three-monthperiod endedSeptember 30		Nine-monthperiod endedSeptember 30		Three-monthperiod endedSeptember 30		Nine-monthperiod endedSeptember 30
Profit from continuing operations attributable to owners of the Parent Company on common<br>shares	~~W~~	230,936		688,668		253,223		1,013,769
Profit of discontinued operations attributable to owners of the Parent Company on common<br>shares		—		—		527,265		1,083,386
Adjusted weighted average number of common shares outstanding		218,134,276		218,105,923		356,104,385		356,061,820
Diluted earnings per share (in won)
Continuing operations	~~W~~	1,059		3,157		711		2,847
Discontinued operations		—		—		1,481		3,043

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2022 and 2021 (Unaudited)

28.	Earnings per Share, Continued
(2)	Diluted earnings per share, Continued
---	---
2)	The adjusted weighted average number of common shares outstanding for the nine-month periods ended<br>September 30, 2022 and 2021 are calculated as follows:
---	---
(In shares)	2022				2021
---	---	---	---	---	---	---	---	---	---	---
	Three-monthperiod endedSeptember 30		Nine-monthperiod endedSeptember 30		Three-monthperiod endedSeptember 30			Nine-monthperiod endedSeptember 30
Outstanding shares as of January 1		217,582,152		217,582,152		356,635,765			356,635,765
Effect of treasury shares		449,901		399,680		(832,550	)		(824,820	)
Effect of share option		102,223		124,091		301,170			250,875
Adjusted weighted average number of common shares outstanding		218,134,276		218,105,923		356,104,385			356,061,820
29.	Categories of Financial Instruments
---	---
(1)	Financial assets by category as of September 30, 2022 and December 31, 2021 are as follows:<br>
---	---
(In millions of won)	September 30, 2022
---	---	---	---	---	---	---	---	---	---	---	---	---
	Financialassets at<br>FVTPL		Equityinstrumentsat FVOCI		Debtinstrumentsat FVOCI		Financial assets atamortized cost		Derivativeshedginginstrument		Total
Cash and cash equivalents	~~W~~	842,884		—		—		348,568		—		1,191,452
Financial instruments		667,236		—		—		88,274		—		755,510
Long-term investment securities(*)		219,207		1,093,516		1,425		—		—		1,314,148
Accounts receivable – trade		—		—		—		2,094,841		—		2,094,841
Loans and other receivables		373,999		—		—		804,832		—		1,178,831
Derivative financial assets		40,942		—		—		—		531,977		572,919
	~~W~~	2,144,268		1,093,516		1,425		3,336,515		531,977		7,107,701
(*)	The Group designated ~~W~~1,093,516 million of equity instruments that are not held for<br>trading as financial assets at FVOCI.
---	---
(In millions of won)	December 31, 2021
---	---	---	---	---	---	---	---	---	---	---	---	---
	Financialassets at<br>FVTPL		Equityinstrumentsat FVOCI		Debtinstrumentsat FVOCI		Financial assets atamortized cost		Derivativeshedginginstrument		Total
Cash and cash equivalents	~~W~~	505,578		—		—		367,153		—		872,731
Financial instruments		389,368		—		—		119,684		—		509,052
Short-term investment securities		5,010		—		—		—		—		5,010
Long-term investment securities(*)		203,473		1,510,428		1,177		—		—		1,715,078
Accounts receivable – trade		—		—		—		1,921,617		—		1,921,617
Loans and other receivables		459,959		—		—		735,958		—		1,195,917
Derivative financial assets		34,933		—		—		—		182,661		217,594
	~~W~~	1,598,321		1,510,428		1,177		3,144,412		182,661		6,436,999
(*)	The Group designated ~~W~~1,510,428 million of equity instruments that are not held for<br>trading as financial assets at FVOCI.
---	---

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2022 and 2021 (Unaudited)

29.	Categories of Financial Instruments, Continued
(2)	Financial liabilities by category as of September 30, 2022 and December 31, 2021 are as follows:<br>
---	---
(In millions of won)	September 30, 2022
---	---	---	---	---	---	---
	Financial liabilities<br>at FVTPL		Financial liabilities<br>at amortized cost		Total
Accounts payable – trade	~~W~~	—		148,756		148,756
Derivative financial liabilities		321,025		—		321,025
Borrowings		—		725,480		725,480
Debentures		—		8,756,359		8,756,359
Lease liabilities(*)		—		1,567,166		1,567,166
Accounts payable - other and others		—		4,431,884		4,431,884
	~~W~~	321,025		15,629,645		15,950,670
(In millions of won)	December 31, 2021
---	---	---	---	---	---	---	---	---
	Financial liabilitiesat FVTPL		Financial liabilitiesat amortized cost		Derivativeshedginginstrument		Total
Accounts payable – trade	~~W~~	—		190,559		—		190,559
Derivative financial liabilities		321,025		—		111		321,136
Borrowings		—		407,185		—		407,185
Debentures		—		8,426,683		—		8,426,683
Lease liabilities(*)		—		1,534,282		—		1,534,282
Accounts payable - other and others		—		5,524,692		—		5,524,692
	~~W~~	321,025		16,083,401		111		16,404,537
(*)	Lease liabilities are not applicable on category of financial liabilities but are classified as financial<br>liabilities measured at amortized cost on consideration of nature for measurement of liabilities.
---	---

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2022 and 2021 (Unaudited)

30.	Financial Risk Management
(1)	Financial risk management
---	---

The Group is exposed to credit risk, liquidity risk and market risk. Market risk is the risk related to the changes in market prices, such as foreign exchange rates and interest rates. The Group implements a risk management system to monitor and manage these specific risks.

The Group’s financial assets consist of cash and cash equivalents, financial instruments, investment securities and accounts receivable – trade and other receivables, etc. Financial liabilities consist of accounts payable – trade and other, borrowings, debentures, lease liabilities and others.

1)	Market risk
(i)	Currency risk
---	---

The Group incurs exchange position due to revenue and expenses from its global operations. Major foreign currencies where the currency risk occur are USD, EUR and JPY. The Group determines the currency risk management policy after considering the nature of business and the presence of methods that mitigate the currency risk for each Group entities. Currency risk occurs on forecasted transactions and recognized assets and liabilities which are denominated in a currency other than the functional currency of each Group entity. The Group manages currency risk arising from business transactions by using currency forwards, etc.

Monetary assets and liabilities denominated in foreign currencies as of September 30, 2022 are as follows:

(In millions of won, thousands of foreign currencies)
				Liabilities
		Won equivalent		Foreign currencies		Won equivalent
	60,590	~~W~~	86,935		1,523,879	~~W~~	2,186,463
	5,493		7,739		12		17
Others	—		208		—		1,273
		~~W~~	94,882			~~W~~	2,187,753

All values are in US Dollars.

In addition, the Group has entered into currency swaps to hedge against currency risk related to foreign currency borrowings and debentures.

As of September 30, 2022, a hypothetical change in exchange rates by 10% would have increased (decreased) the Group’s profit before income tax as follows:

(In millions of won)
			If decreased by 10%
	4,556			(4,556	)
	772			(772	)
Others	(107	)		107
	5,221			(5,221	)

All values are in Euros.

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2022 and 2021 (Unaudited)

30.	Financial Risk Management, Continued
(1)	Financial risk management, Continued
---	---
1)	Market risk, continued
---	---
(ii)	Interest rate risk
---	---

The interest rate risk of the Group arises from borrowings, debentures and long-term payables – other. Since the Group’s interest bearing assets are mostly fixed-interest bearing assets, the Group’s revenue and operating cash flows from the interest-bearing assets are not influenced by the changes in market interest rates.

The Group performs various analysis to reduce interest rate risk and to optimize its financing. To minimize risks arising from changes in interest rates, the Group takes various measures such as refinancing, renewal, alternative financing and hedging.

As of September 30, 2022, floating-rate borrowings and debentures amount to ~~W~~18,750 million and ~~W~~430,440 million, respectively, and the Group has entered into interest rate swaps to hedge interest rate risk related to the floating-rate borrowings and debentures. Therefore, profit before income taxes for the nine-month period ended September 30, 2022 would not have been affected by the changes in interest rates of floating-rate borrowings and debentures.

As of September 30, 2022, the floating-rate long-term payables – other are ~~W~~1,690,470 million. If the interest rate increases (decreases) 1%p with all other variables held constant, profit before income taxes for the nine-month period ended September 30, 2022, would change by ~~W~~12,679 million in relation to the floating-rate long-term payables – other that are exposed to interest rate risk.

Interest rate benchmark reform and associated risks

A fundamental reform of major interest rate benchmarks is being undertaken globally, including the replacement of some interbank offered rates (IBORs) with alternative nearly risk-free rates (referred to as ‘IBOR reform’). Especially, in the case of LIBOR, all of the calculations were suspended as of December 31, 2021, except for the overnight, one month, three months, six months, and 12 months of USD LIBOR, and the aforementioned five USD LIBORs will also be suspended as of June 30, 2023. The alternative interest rate benchmark of USD LIBOR is the Secured Overnight Financing Rate(“SOFR”). Meanwhile, in case of Korean CD rate, the alternative interest rate benchmark has selected as Korea Overnight Financing Repo Rate(“KOFR”), and as part of interest rate benchmark reform, the interest rate has been disclosed through Korea Securities Depository since November 26, 2021. KOFR is calculated using the overnight RP rate as collateral for government bonds and monetary stabilization bonds. However, unlike LIBOR, calculation of CD rate will not be suspended, and it is unclear when and how the transition to KOFR will take place, accordingly.

The Group plans to include fallback clauses into financial instruments relating to LIBOR to which calculation has not been suspended yet or change their LIBOR directly to alternative interest rates before the calculation is suspended. Moreover, the Group is closely monitoring market trends for CD interest rate-related financial products for which the calculation of interest rate indicators is not scheduled to be suspended.

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2022 and 2021 (Unaudited)

30.	Financial Risk Management, Continued
(1)	Financial risk management, Continued
---	---
1)	Market risk, continued
---	---
(ii)	Interest rate risk, continued
---	---

The Group’s financial instruments exposed to the risk arising from interest rate benchmark reform as of September 30, 2022 are indexed to the USD LIBOR. The Group is exposed to legal risk to amend the terms of contracts on the financial instruments subject to interest rate benchmark reform as well as process and operation risks to manage such amendments. In addition, the Group is exposed to the risk of monitoring the market trend regarding the alternative interest rate and establishing the corresponding risk management strategy. If the IBOR is designated as the hedged item, the Group is required to replace it to an alternative benchmark interest and review the effects on the hedging relationship. In addition, the Group is exposed to the risk of minimizing hedge ineffectiveness by aligning the method and timing of the transition to the alternative benchmark interest applied to the hedged item and the hedging instrument.

In order to manage and monitor such risk factors, the Group evaluates the extent to which contracts refer to IBOR cash flows, whether such contracts will need to be amended as a result of IBOR reform and how to manage communication about IBOR reform with counterparties.

Non-derivative financial liabilities

The Parent Company’s non-derivative financial liabilities subject to interest rate benchmark reform as of December 31, 2021 were floating-rate bonds indexed to USD LIBOR. As explained above, the Group is discussing with the counterparty about including the fallback clauses as of September 30, 2022.

Derivatives

The Group’s most derivative instruments designated as cash flow hedge are governed by contracts based on the International Swaps and Derivatives Association (ISDA)’s master agreements. As part of interest rate benchmark reform, ISDA has included a new fallback clause regarding which alterative benchmark interest rate to be applied when the calculation of major IBOR is suspended in the master agreement. The master agreement is applied to derivative contracts after January 25, 2021, and the transaction parties is required to adhere to ISDA protocol to include the same fallback clause to derivative contracts before January 25, 2021. The Group has adhered to ISDA protocol for transition to the alternative benchmark interest rate, and the fallback clause will be included when counterparties adhere to the protocol to include. The Group’s counterparties have adhered to ISDA protocol and agreed to include the fallback clause.

Hedge accounting

The Group’s hedged items and hedging instruments as of September 30, 2022 are indexed to USD LIBOR. These benchmark rates are quoted each day, and the IBOR cash flows are exchanged with counterparties as usual.

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2022 and 2021 (Unaudited)

30.	Financial Risk Management, Continued
(1)	Financial risk management, Continued
---	---
2)	Credit risk
---	---

The maximum credit exposure as of September 30, 2022 and December 31, 2021 are as follows:

(In millions of won)
	September 30, 2022		December 31, 2021
Cash and cash equivalents	~~W~~	1,191,225		872,550
Financial instruments		755,510		509,052
Long-term investment securities		2,325		2,077
Accounts receivable – trade		2,094,841		1,921,617
Contract assets		129,622		118,278
Loans and other receivables		1,178,831		1,195,917
Derivative financial assets		572,919		217,594
	~~W~~	5,925,273		4,837,085

Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its contractual obligations. To manage credit risk, the Group evaluates the credit worthiness of each customer or counterparty considering the party’s financial information, its own trading records and other factors. Based on such information, the Group establishes credit limits for each customer or counterparty.

The Group establishes a loss allowance in respect of accounts receivable – trade. The main components of this allowance are a specific loss component that relates to individually significant exposures and a collective loss component established for groups of similar assets in respect of losses that are expected to occur. The collective loss allowance is determined based on historical data of collection statistics for similar financial assets. Also, the Group’s credit risk can arise from transactions with financial institutions related to its cash and cash equivalents, financial instruments and derivatives. To minimize such risk, the Group has a policy to deal only with financial institutions with high credit ratings. The amount of maximum exposure to credit risk of the Group is the carrying amount of financial assets as of September 30, 2022.

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2022 and 2021 (Unaudited)

30.	Financial Risk Management, Continued
(1)	Financial risk management, Continued
---	---
3)	Liquidity risk
---	---

The Group’s approach to managing liquidity is to ensure that it will always maintain sufficient cash and cash equivalents balances and have enough liquidity through various committed credit lines. The Group maintains enough liquidity within credit lines through active operating activities.

Contractual maturities of financial liabilities as of September 30, 2022 are as follows:

(In millions of won)
	Carryingamount		Contractualcash flows		Less than 1year		1 - 5 years		More than5 years
Accounts payable – trade	~~W~~	148,756		148,756		148,756		—		—
Borrowings(*)		725,480		755,375		56,416		698,959		—
Debentures(*)		8,756,359		9,881,659		2,669,291		4,831,381		2,380,987
Lease liabilities		1,567,166		1,699,052		379,431		1,040,294		279,327
Accounts payable – other and others(*)		4,431,884		4,574,632		3,225,608		1,255,967		93,057
	~~W~~	15,629,645		17,059,474		6,479,502		7,826,601		2,753,371
(*)	Includes interest payables.
---	---

The Group does not expect that the cash flows included in the maturity analysis could occur significantly earlier or at different amounts.

As of September 30, 2022, periods in which cash flows from cash flow hedge derivatives are expected to occur are as follows:

(In millions of won)
	Carryingamount		Contractualcash flows		Less than1 year		1 - 5<br>years		More than5 years
Assets	~~W~~	531,977		576,678		319,344		257,334		—

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2022 and 2021 (Unaudited)

30.	Financial Risk Management, Continued
(2)	Capital management
---	---

The Group manages its capital to ensure that it will be able to continue as a business while maximizing the return to shareholders through the optimization of its debt and equity structure. The overall strategy of the Group is the same as that of the Group as of and for the year ended December 31, 2021.

The Group monitors its debt-equity ratio as a capital management indicator. This ratio is calculated as total liabilities divided by total equity from the consolidated financial statements.

Debt-equity ratio as of September 30, 2022 and December 31, 2021 are as follows:

(In millions of won)
	September 30, 2022			December 31, 2021
Total liabilities	~~W~~	18,232,669			18,576,139
Total equity		12,297,106			12,335,138
Debt-equity ratios		148.27	%		150.60	%
(3)	Fair value
---	---

1) Fair value and carrying amount of financial assets and liabilities including fair value hierarchy as of September 30, 2022 are as follows:

(In millions of won)	September 30, 2022
	Carryingamount		Level 1		Level 2		Level 3		Total
Financial assets that are measured at fair value:
FVTPL	~~W~~	2,144,268		42,593		1,884,119		217,556		2,144,268
Derivative hedging instruments		531,977		—		531,977		—		531,977
FVOCI		1,094,941		882,424		—		212,517		1,094,941
	~~W~~	3,771,186		925,017		2,416,096		430,073		3,771,186
Financial liabilities that are measured at fair value:
FVTPL	~~W~~	321,025		—		—		321,025		321,025
Financial liabilities that are not measured at fair value:
Borrowings	~~W~~	725,480		—		691,046		—		691,046
Debentures		8,756,359		—		8,194,546		—		8,194,546
Long-term payables – other		1,631,405		—		1,596,468		—		1,596,468
	~~W~~	11,113,244		—		10,482,060		—		10,482,060

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2022 and 2021 (Unaudited)

30.	Financial Risk Management, Continued
(3)	Fair value, Continued
---	---

2) Fair value and carrying amount of financial assets and liabilities including fair value hierarchy as of December 31, 2021 are as follows:

(In millions of won)	December 31, 2021
	Carryingamount		Level 1		Level 2		Level 3		Total
Financial assets that are measured at fair value:
FVTPL	~~W~~	1,598,321		55,455		1,359,915		182,951		1,598,321
Derivative hedging instruments		182,661		—		182,661		—		182,661
FVOCI		1,511,605		1,344,434		—		167,171		1,511,605
	~~W~~	3,292,587		1,399,889		1,542,576		350,122		3,292,587
Financial liabilities that are measured at fair value:
FVTPL	~~W~~	321,025		—		—		321,025		321,025
Derivative hedging instruments		111		—		111		—		111
	~~W~~	321,136		—		111		321,025		321,136
Financial liabilities that are not measured at fair value:
Borrowings	~~W~~	407,185		—		392,237		—		392,237
Debentures		8,426,683		—		8,679,472		—		8,679,472
Long-term payables – other		2,009,833		—		2,010,852		—		2,010,852
	~~W~~	10,843,701		—		11,082,561		—		11,082,561

The above information does not include fair values of financial assets and liabilities of which fair values have not been measured as carrying amounts are reasonable approximation of fair values.

Fair value of the financial instruments that are traded in an active market (financial assets at FVOCI and financial assets at FVTPL) is measured based on the bid price at the end of the reporting date.

The Group uses various valuation methods for determination of fair value of financial instruments that are not traded in an active market. Derivative financial contracts and long-term liabilities are measured using the discounted present value methods. Other financial assets are determined using the methods, such as discounted cash flow and market approach. Inputs used to such valuation methods include swap rate, interest rate, and risk premium, and the Group performs valuation using the inputs which are consistent with natures of assets and liabilities measured.

Interest rates used by the Group for the fair value measurement as of September 30, 2022 are as follows:

	Interest rate
Derivative instruments	0.32% ~ 5.47%
Borrowings and debentures	4.96% ~ 5.08%
Long-term payables – other	3.83% ~ 5.04%

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2022 and 2021 (Unaudited)

30.	Financial Risk Management, Continued
(3)	Fair value, Continued
---	---
3)	There have been no transfers between Level 2 and Level 1 for the nine-month period ended<br>September 30, 2022. The changes of financial assets classified as Level 3 for the nine-month period ended September 30, 2022 are as follows:
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	Balance as of<br>January 1, 2022			Profit or loss		OCI		Acquisition		Disposal			Transfer			Balance as of<br>September 30, 2022
Financial assets																		****
FVTPL	~~W~~	182,951			26,584		9,121		46,919		(48,019	)		—			217,556
FVOCI		167,171			—		19,245		48,539		(21,538	)		(900	)		212,517
	~~W~~	350,122			26,584		28,366		95,458		(69,557	)		(900	)		430,073
Financial liabilities																		****
FVTPL	~~W~~	(321,025	)		—		—		—		—			—			(321,025	)
(4)	Enforceable master netting agreement or similar agreement
---	---

Carrying amounts of financial instruments recognized of which offset agreements are applicable as of September 30, 2022 and December 31, 2021 are as follows:

(In millions of won)	September 30, 2022
	Gross financialinstrumentsrecognized		Amount offset			Net financial instrumentspresented on the interimconsolidated statement offinancial position
Financial assets:
Accounts receivable – trade and others	~~W~~	249,524		(237,943	)		11,581
Financial liabilities:
Accounts payable – other and others	~~W~~	241,091		(237,943	)		3,148
(In millions of won)	December 31, 2021
	Gross financialinstrumentsrecognized		Amount offset			Net financial instrumentspresented on theconsolidated statement offinancial position
Financial assets:
Accounts receivable – trade and others	~~W~~	197,828		(189,424	)		8,404
Financial liabilities:
Accounts payable – other and others	~~W~~	200,849		(189,424	)		11,425

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2022 and 2021 (Unaudited)

31.	Transactions with Related Parties
(1)	List of related parties
---	---
Relationship	Company
---	---
Ultimate Controlling Entity	SK Inc.
Joint ventures	UTC Kakao-SK Telecom ESG Fund
Associates	SK China Company Ltd. and 44 others
Others	The Ultimate Controlling Entity’s subsidiaries and associates, etc.

As of September 30, 2022, the Group belongs to SK Group, a conglomerate in accordance with the Monopoly Regulation and Fair Trade Act of the Republic of Korea. In this regard, all of the other entities included in SK Group other than aforementioned ones are considered related parties of the Group.

(2)	Compensation for the key management

The Parent Company considers registered directors (3 executive and 5 non-executive directors) who have substantial role and responsibility in planning, operations, and relevant controls of the business as key management. The compensation given to such key management for the nine-month periods ended September 30, 2022 and 2021 are as follows:

(In millions of won)	2022				2021
	Three-monthperiod endedSeptember 30		Nine-monthperiod endedSeptember 30		Three-monthperiod endedSeptember 30		Nine-monthperiod endedSeptember 30
Salaries	~~W~~	569		2,918		990		5,422
Defined benefits plan expenses		208		613		210		2,234
Share option		508		1,089		40		112
	~~W~~	1,285		4,620		1,240		7,768

Compensation for the key management includes salaries, non-monetary salaries, and retirement benefits made in relation to the pension plan and compensation expenses related to share options granted.

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2022 and 2021 (Unaudited)

31.	Transactions with Related Parties, Continued
(3)	Transactions with related parties for the nine-month periods ended September 30, 2022 and 2021 are as<br>follows:
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---	---	---	---	---	---
		For the period ended September 30, 2022
		Operating revenue andothers				*Operating expense andothers(1)**				Acquisition of propertyand equipment andothers
Scope	Company	Three-month		Nine-month		Three-month		Nine-month		Three-month		Nine-month
Ultimate Controlling Entity	SK Inc.(*2)	~~W~~	5,696		15,695		152,902		499,682		13,139		28,831
Associates	F&U Credit information Co., Ltd.		730		2,220		12,206		36,718		157		157
	HanaCard Co., Ltd.(*3)		—		8,932		—		1,820		—		22
	Daehan Kanggun BcN Co., Ltd.		2,501		7,407		—		—		—		—
	Others(*4)		—		12,505		1,446		3,764		—		—
			3,231		31,064		13,652		42,302		157		179
	SK Innovation Co., Ltd.		8,337		17,625		4,879		14,124		—		—
	SK Networks Co., Ltd.(*5)		966		3,650		235,978		631,010		—		—
	SK Networks Service Co., Ltd.		1,178		4,156		18,365		52,192		775		1,634
	SK Energy Co., Ltd.		1,031		3,045		149		607		—		—
	Content Wavve Corp.		1,713		2,148		23,192		67,923		175		175
	SK Shieldus Co., Ltd.		9,022		22,526		38,275		116,332		9,349		15,847
	Eleven Street Co., Ltd.		15,132		30,645		3,892		16,878		—		—
	SK Planet Co., Ltd.		4,656		12,194		23,782		68,848		4,525		7,718
	SK hynix Inc.		16,518		39,422		152		204		—		—
	Dreamus Company		2,654		4,701		20,439		64,208		550		550
	One Store Co., Ltd.		4,359		12,643		9		15		—		—
	T map Mobility Co., Ltd.		5,792		16,304		1,186		3,755		548		548
	UbiNS Co., Ltd.		23		69		11,208		33,161		7,622		18,247
	SK Geo Centric Co., Ltd.		218		635		1		1		—		—
	SK Ecoplant Co., Ltd.		960		2,460		—		69		—		—
	SK RENT A CAR Co., Ltd.		5,062		10,785		3,932		11,637		—		—
	SK Magic Co., Ltd.		570		1,916		264		787		—		—
	Happy Narae Co., Ltd.		487		1,194		3,125		15,067		15,799		55,874
	Others		8,305		21,421		6,772		17,577		5,239		8,089
			86,983		207,539		395,600		1,114,395		44,582		108,682
		~~W~~	95,910		254,298		562,154		1,656,379		57,878		137,692
(*1)	Operating expenses and others include lease payments by the Group.
---	---
(*2)	Operating expenses and others include ~~W~~218,019 million of dividends declared to be paid<br>by the Parent Company.
---	---
(*3)	HanaCard Co., Ltd. was excluded from the related parties due to the disposal of shares for the nine-month<br>period ended September 30, 2022, and the transactions above occurred before the disposal.
---	---
(*4)	Operating revenue and others include ~~W~~12,410 million of dividends received from Korea IT<br>Fund which was deducted from the investment in associates.
---	---
(*5)	Operating expenses and others include costs for handset purchases amounting to<br>~~W~~589,882 million.
---	---

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2022 and 2021 (Unaudited)

31.	Transactions with Related Parties, Continued
(3)	Transactions with related parties for the nine-month periods ended September 30, 2022 and 2021 are as<br>follows, Continued:
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---	---	---	---	---	---
		For the period ended September 30, 2021
		Operating revenue andothers				*Operating expense andothers(1)**				Acquisition of<br>property andequipment and others
Scope	Company	Three-month		Nine-month		Three-month		Nine-month		Three-month		Nine-month
Ultimate Controlling Entity	SK Inc.(*2)	~~W~~	7,683		25,823		153,577		535,848		7,826		34,735
Associates	F&U Credit information Co., Ltd.		771		2,316		12,987		38,191		—		—
	SK hynix Inc.(*3)		34,735		264,716		19		192		—		—
	HanaCard Co., Ltd.		101		1,784		699		2,210		—		—
	SK Wyverns Corp.(*4)		—		202		—		8,203		—		—
	Content Wavve Co., Ltd.		59		143		18,245		51,914		—		—
	Others(*5)		12,005		41,151		1,974		6,352		—		—
			47,671		310,312		33,924		107,062		—		—
Others	SK Ecoplant Co., Ltd. (Formerly, SK Engineering & Construction Co., Ltd.)		3,713		9,991		—		—		—		—
	SK Innovation Co., Ltd.		16,852		47,781		4,660		13,582		—		—
	SK Networks Co., Ltd.(*6)		3,916		11,187		224,409		725,921		—		24
	SK Networks Service Co., Ltd.		1,629		5,216		17,312		54,484		1,469		1,956
	SK Telesys Co., Ltd.		90		237		1,421		5,506		5,165		15,869
	SK TNS Co., Ltd.(*4)		—		75		—		6,868		—		57,903
	SK Energy Co., Ltd.		9,265		19,007		441		1,160		—		—
	SK hynix Semiconductor (China) Ltd.		14,049		40,420		—		—		—		—
	SK Battery Hungary Kft.		10,531		30,434		—		—		—		—
	SK Geo Centric Co., Ltd. (Formerly, SK Global Chemical Co., Ltd.)		13,249		26,017		1		9		—		—
	SK Global Chemical International Trading (Shanghai) Co., Ltd.		4,672		12,441		—		—		—		—
	Happy Narae Co., Ltd.		1,729		6,271		5,099		16,079		15,618		59,178
	SK hynix system ic (Wuxi) Co., Ltd.		9,537		20,206		—		—		—		—
	Others		52,328		98,854		16,243		92,792		12,620		40,338
			141,560		328,137		269,586		916,401		34,872		175,268
		~~W~~	196,914		664,272		457,087		1,559,311		42,698		210,003
(*1)	Operating expense and others include lease payments by the Group.
---	---
(*2)	Operating expense and others include ~~W~~248,677 million of dividends paid by the Parent<br>Company.
---	---
(*3)	Operating revenue and others include ~~W~~170,937 million of dividends received from SK hynix<br>Inc. which was deducted from the investment in associates.
---	---
(*4)	Transactions occurred before the related party relationship terminated.
---	---
(*5)	Operating revenue and others include ~~W~~10,716 million of dividends received from Korea IT<br>Fund which was deducted from the investment in associates.
---	---
(*6)	Operating expenses and others include costs for handset purchases amounting to<br>~~W~~684,978 million.
---	---

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2022 and 2021 (Unaudited)

31.	Transactions with Related Parties, Continued
(4)	Account balances with related parties as of September 30, 2022 and December 31, 2021 are as follows:<br>
---	---
(In millions of won)		September 30, 2022
---	---	---	---	---	---	---	---
		Receivables				Payables
Scope	Company	Loans		Accounts<br>receivable –trade, etc.		Accounts<br>payable – other,etc.
Ultimate Controlling Entity	SK Inc.	~~W~~	—		1,071		46,361
Associates	F&U Credit information Co., Ltd.		—		—		4,038
	Wave City Development Co., Ltd.(*1)		—		901		—
	Daehan Kanggun BcN Co., Ltd.(*2)		22,148		2,647		—
	SK USA, Inc.		—		—		2,870
			22,148		3,548		6,908
	SK hynix Inc.		—		13,015		105
	SK Planet Co., Ltd.		—		2,512		33,885
	Eleven Street Co., Ltd.		—		6,280		7,185
	SK Shieldus Co., Ltd.		—		3,464		32,757
	SK Innovation Co., Ltd.		—		3,284		31,979
	SK Networks Co., Ltd.		—		301		178,808
	SK RENT A CAR Co., Ltd.		—		1,715		20,564
	Incross Co., Ltd.		—		4,145		13,589
	Mintit Co., Ltd.		—		42,653		36
	Happy Narae Co., Ltd.		—		142		2,284
	Content Wavve Corp.		—		948		—
	UbiNS Co., Ltd.		—		—		6,142
	Others		—		8,030		28,894
			—		86,489		356,228
		~~W~~	22,148		91,108		409,497
(*1)	As of September 30, 2022, the Parent Company recognized loss allowance amounting to<br>~~W~~379 million on accounts receivable – trade.
---	---
(*2)	As of September 30, 2022, the Parent Company recognized full loss allowance for the balance of loans to<br>Daehan Kanggun BcN Co., Ltd.
---	---

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2022 and 2021 (Unaudited)

31.	Transactions with Related Parties, Continued
(4)	Account balances with related parties as of September 30, 2022 and December 31, 2021 are as<br>follows, Continued:
---	---
(In millions of won)		December 31, 2021
---	---	---	---	---	---	---	---
		Receivables				Payables
Scope	Company	Loans		Accountsreceivable –trade, etc.		Accountspayable – other,etc.
Ultimate Controlling Entity	SK Inc.	~~W~~	—		2,092		69,652
Associates	F&U Credit information Co., Ltd.		—		4		5,265
	Wave City Development Co., Ltd.(*1)		—		2,623		—
	Daehan Kanggun BcN Co., Ltd.(*2)		22,147		3,857		—
	HanaCard Co., Ltd.		—		529		48,020
	Others		—		84		1,197
			22,147		7,097		54,482
Others	SK Innovation Co., Ltd.		—		3,022		38,022
	SK Networks Co., Ltd.		—		241		198,631
	Mintit Co., Ltd.		—		17,929		131
	SK hynix Inc.		—		11,526		166
	Happy Narae Co., Ltd.		—		6		49,349
	SK m&service Co., Ltd.		—		1,453		18,921
	SK Shieldus Co., Ltd.		—		2,649		24,593
	Content Wavve Corp.		—		183		9,873
	Incross Co., Ltd.		—		3,610		11,829
	Eleven Street Co., Ltd.		—		2,851		7,782
	SK Planet Co., Ltd.		—		668		31,652
	SK RENT A CAR Co., Ltd.		—		116		16,715
	UbiNS Co., Ltd.		—		24		14,932
	Others		—		8,307		29,106
			—		52,585		451,702
		~~W~~	22,147		61,774		575,836
(*1)	As of December 31, 2021, the Parent Company recognized loss allowance amounting to<br>~~W~~1,102 million on accounts receivable – trade.
---	---
(*2)	As of December 31, 2021, the Parent Company recognized full loss allowance for the balance of loans to<br>Daehan Kanggun BcN Co., Ltd.
---	---
(5)	The Group has granted SK REIT Co., Ltd. the right of first offer regarding the disposal of real estate owned by<br>the Group. Whereby, the negotiation period is within 3 to 5 years from June 30, 2021, date of agreement, and the Group has been granted the right by SK REIT Co., Ltd. to lease the real estate in preference to a third party if SK REIT Co., Ltd.<br>purchases the real estate from the Group.
---	---
(6)	The details of additional investments and disposal of associates and joint ventures for the nine-month period<br>ended September 30, 2022 are as presented in note 11.
---	---

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2022 and 2021 (Unaudited)

32.	Commitments and Contingencies
(1)	Collateral assets and commitments
---	---

SK Broadband Co., Ltd., a subsidiary of the Parent Company, has pledged its properties as collateral for leases on buildings in the amount of ~~W~~1,513 million as of September 30, 2022.

Meanwhile, PanAsia Semiconductor Materials LLC., a subsidiary of the Parent Company, has pledged its ~~W~~21,072 million of equity instruments at FVTPL on ~~W~~12,998 million of short-term loans as of September 30, 2022.

(2)	Legal claims and litigations

As of September 30, 2022, the Group is involved in various legal claims and litigation. Provision recognized in relation to these claims and litigation is immaterial. In connection with those legal claims and litigation for which no provision was recognized, management does not believe the Group has a present obligation, nor is it expected any of these claims or litigation will have a significant impact on the Group’s financial position or operating results in the event an outflow of resources is ultimately necessary.

(3)	Accounts receivable from sale of handsets

The sales agents of the Parent Company sell handsets to the Parent Company’s subscribers on an installment basis. The Parent Company entered into comprehensive agreements to purchase accounts receivable from handset sales with retail stores and authorized dealers and to transfer the accounts receivable from handset sales to special purpose companies which were established with the purpose of liquidating receivables, respectively.

Accounts receivable from sales of handsets amounting to ~~W~~401,940 million and ~~W~~493,277 million as of September 30, 2022 and December 31, 2021, respectively, which the Parent Company purchased according to the relevant comprehensive agreement are recognized as accounts receivable – other and long-term accounts receivable – other.

(4)	Commitment of the acquisition and disposal of shares

The Board of Directors of the Parent Company resolved the acquisition and disposal of certain shares in order to strengthen the strategic alliance with Hana Financial Group Inc. (“HFG”) at the Board of Directors’ meeting held on July 22, 2022. In accordance with the resolution, as of July 27, 2022, the Parent Company disposed of its entire common shares of HanaCard Co., Ltd. (39,902,323 shares) and entire common shares of Finnq Co., Ltd. (6,370,000 shares) to HFG for ~~W~~330,032 million and ~~W~~5,733 million, respectively. Through the agreement with HFG, the Parent Company is obligated to acquire HFG’s common shares from July 27, 2022 to January 31, 2024, after depositing ~~W~~330,032 million in a specific money trust. For a part of the above transaction, as of July 27, 2022, the Parent Company disposed of its entire common shares of SK Square Co., Ltd. (767,011 shares) to HanaCard Co., Ltd. for ~~W~~31,563 million, and HanaCard Co., Ltd. is obligated to acquire the Parent Company’s common shares from July 27, 2022 to January 31, 2024, after depositing ~~W~~68,437 million in a specific money trust. The Parent Company, HFG, and HanaCard Co., Ltd. may not dispose of shares they have acquired or will acquire under the above transaction until March 31, 2025.

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2022 and 2021 (Unaudited)

33.	Statements of Cash Flows
(1)	Adjustments for income and expenses from operating activities for the<br>nine-month periods ended September 30, 2022 and 2021 are as follows:
---	---
(In millions of won)	For the nine-month period ended
---	---	---	---	---	---	---
	September 30, 2022			September 30, 2021
Interest income	~~W~~	(35,739	)		(35,928	)
Dividend income		(2,552	)		(4,932	)
Gain on foreign currency translations		(9,921	)		(16,971	)
Gain on sale of accounts receivable – other		(1,043	)		(21,794	)
Loss (gain) relating to investments in associates and joint ventures, net		75,909			(1,723,625	)
Gain on disposal of property and equipment and intangible assets		(11,682	)		(16,838	)
Gain on business transfer		—			(82,248	)
Gain relating to financial instruments at FVTPL		(28,606	)		(70,470	)
Other income		(5,191	)		(4,847	)
Interest expenses		225,426			264,460
Loss on foreign currency translations		9,463			13,623
Loss on sale of accounts receivable – other		23,212			—
Income tax expense		368,036			534,182
Expense related to defined benefit plan		101,993			148,652
Share compensation expense		77,176			4,156
Bonus paid by treasury shares		24,007			29,642
Depreciation and amortization		2,820,490			3,122,129
Bad debt expenses		23,062			22,837
Loss on disposal of property and equipment and intangible assets		360			—
Impairment loss on property and equipment and intangible assets		6,279			34,217
Other bad debt expenses		2,267			3,142
Loss relating to financial instruments at FVTPL		14,471			118,791
Other financial fees		—			132,815
Other expenses		17,324			4,669
	~~W~~	3,694,741			2,455,662

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2022 and 2021 (Unaudited)

33.	Statements of Cash Flows, Continued
(2)	Changes in assets and liabilities from operating activities for the nine-month periods ended September 30,<br>2022 and 2021 are as follows:
---	---
(In millions of won)	For the nine-month period ended
---	---	---	---	---	---	---
	September 30, 2022			September 30, 2021
Accounts receivable – trade	~~W~~	(151,647	)		(136,592	)
Accounts receivable – other		4,468			(151,709	)
Advanced payments		(12,897	)		(42,781	)
Prepaid expenses		11,505			75,868
Inventories		11,455			(27,262	)
Long-term accounts receivable – other		76,925			27,494
Contract assets		(15,205	)		(35,759	)
Guarantee deposits		3,117			9,867
Accounts payable – trade		(43,448	)		(33,410	)
Accounts payable – other		(79,083	)		(133,822	)
Withholdings		108,661			13,338
Contract liabilities		15,489			13,009
Deposits received		225			(3,499	)
Accrued expenses		77,167			(29,952	)
Provisions		(338	)		(19,013	)
Long-term provisions		(9,311	)		(225	)
Plan assets		26,256			44,857
Retirement benefits paid		(57,528	)		(84,244	)
Others		(3,120	)		1,214
	~~W~~	(37,309	)		(512,621	)
(3)	Significant non-cash transactions for the nine-month periods ended<br>September 30, 2022 and 2021 are as follows:
---	---
(In millions of won)	For the nine-month period ended
---	---	---	---	---	---	---
	September 30, 2022			September 30, 2021
Decrease in accounts payable – other relating to the acquisition of property and equipment<br>and intangible assets	~~W~~	(654,993	)		(202,324	)
Increase of<br>right-of-use assets		374,677			879,822
Contribution in kind for investments		—			11,070
Retirement of treasury shares		—			1,965,952

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2022 and 2021 (Unaudited)

34.	Emissions Liabilities
(1)	The quantity of emissions rights allocated free of charge for each implementation year as of September 30,<br>2022 are as follows:
---	---
(In tCO2-eQ)
---	---	---	---	---	---	---	---	---
	Quantities<br>allocated in 2020		Quantitiesallocated in 2021		Quantitiesallocated in 2022		Total
Emissions rights allocated free of charge		814,842		1,033,764		1,033,764		2,882,370
(2)	Changes in emissions rights quantities the Parent Company held are as follows:
---	---
(In tCO2-eQ)
---	---	---	---	---	---	---	---	---	---	---	---	---
	Quantities<br>allocated in2020			Quantitiesallocated in2021			Quantitiesallocated in thenine-monthperiod endedSeptember 30,2022			Total
Beginning		(60,977	)		—			(19,854	)		(80,831	)
Allocation at no cost		814,842			1,033,764			1,033,764			2,882,370
Additional allocation		217,643			—			—			217,643
Other changes		—			(2,238	)		(2,238	)		(4,476	)
Purchase		68,471			—			—			68,471
Surrender or shall be surrendered		(1,039,979	)		(1,051,380	)		(1,140,316	)		(3,231,675	)
Borrowed		—			19,854			—			19,854
Ending		—			—			(128,644	)		(128,644	)
(3)	As of September 30, 2022, the estimated annual greenhouse gas emissions quantities of the Parent Company<br>are 1,140,316 tCO2-eQ.
---	---
35.	Non-current Assets Held for Sale
---	---

On February 25, 2021, the Parent Company has decided to dispose of the investments in an associate engaged in mobility business to T map Mobility Co., Ltd. pursuant to the approval of the Board of Directors and reclassified entire shares of the investments in associates as non-current assets held for sale. The disposal of the investment in the associate was completed in 2022 after the Financial Services Commission approved the transaction.

(In millions of won)
		September 30, 2022
Investments in associates	Carrot General Insurance Co., Ltd.	~~W~~	8,734

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2022 and 2021 (Unaudited)

36.	Spin-off
(1)	In accordance with the resolution of the Board of Directors held on June 10, 2021 and approval from<br>shareholders’ meeting held on October 12, 2021, the Parent Company completed the spin-off of its businesses of managing investments in semiconductor, New Information and Communication Technologies<br>(“ICT”) and other business and making new investments on November 1, 2021, and the registration of the spin-off was completed as of November 2, 2021. The details of the spin-off are as follows:
---	---
Method of<br>spin-off	Horizontal<br>spin-off
---	---
Company	SK Telecom Co., Ltd. (Surviving Company)
	SK Square Co., Ltd. (Spin-off Company)
Effective date of spin-off	November 1, 2021
(2)	The details of financial information due to the spin-off of its<br>businesses of managing investments in semiconductor, New ICT and other business and making new investments are as follows:
---	---
1)	Statements of Profit or Loss
---	---

The details of profit or loss of discontinued operations for the nine-month period ended September 30, 2021 are as follows:

(In millions of won)
	For the nine-month period ended<br>September 30, 2021
Operating revenue	~~W~~	2,112,954
Operating expenses:		2,090,555
Labor		737,644
Commission		288,997
Depreciation and amortization		258,433
Network interconnection		755
Advertising		141,192
Rent		2,260
Cost of goods sold		383,015
Others		278,259
Operating profit	****	22,399
Finance income		45,454
Finance costs		202,067
Gain relating to investments in associates and joint ventures		1,286,886
Other non-operating income		85,557
Other non-operating expenses		23,062
Profit before income tax	****	1,215,167
Income tax benefit		170,960
Profit for the period	~~W~~	1,044,207

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2022 and 2021 (Unaudited)

36.	Spin-off, Continued
(2)	The details of financial information due to the spin-off of its<br>businesses of managing investments in semiconductor, New ICT and other business and making new investments are as follows, Continued:
---	---
2)	Statements of Cash Flows
---	---

The details of cash flows from discontinued operations for the nine-month period ended September 30, 2021 are as follows:

(In millions of won)
	For the nine-month period ended<br>September 30, 2021
Cash flows from operating activities	~~W~~	124,860
Cash flows from investing activities		(935,243	)
Cash flows from financing activities		520,402
(3)	Subsequent to the spin-off, the Parent Company lost control over the<br>related businesses. The spin-off was accounted for by derecognizing all related assets and liabilities. The net assets of the spin-off business as of the spin-off date was recognized in capital surplus and others. The details of assets and liabilities derecognized from the consolidated financial statements due to the spin-off<br>of its businesses of managing investments in semiconductor, New ICT and other business and making new investments are as follows:
---	---
(In millions of won)
---	---	---
	December 31, 2021
Current assets	~~W~~	2,608,601
Non-current assets		19,269,615
Total assets	~~W~~	21,878,216
Current liabilities	~~W~~	2,161,458
Non-current liabilities		4,676,324
Total liabilities	~~W~~	6,837,782
Net assets	~~W~~	15,040,434
(4)	As of November 1, 2021, the Parent Company has split the business division for the purpose of new<br>investments and management of shares in related investee companies belong to semiconductors and New ICT sector. The Parent Company has the obligation to jointly and severally reimburse the liabilities incurred by the company prior to the spin-off with SK Square Co., Ltd., the spin-off company, in accordance with Article 530-9 (1) of Korean Commercial Act.<br>
---	---
37.	Subsequent Events
---	---
(1)	The Board of Directors of the Parent Company resolved to pay interim dividends at the Board of Directors’<br>meeting held on October 27, 2022, and the details are as follows:
---	---
Classification	Description
---	---
Interim dividend amount	~~W~~830 per share (Total amount: ~~W~~180,967 million)
Dividend rate	1.59%
Record date	September 30, 2022
Date of distribution	Pursuant to Article 165 of Capital Market and Financial Investment Business Act 12-3, the Parent Company shall distribute dividends no later than November 16, 2022.

SK TELECOM CO., LTD.

Interim Separate Financial Statements

For the Nine-MonthPeriod ended September 30, 2022

(With the Independent Auditor’s Review Report Thereon)

Contents

	Page
Report on review of interim separate financialstatements
Interim Separate Financial Statements
Interim Separate Statements of Financial Position		1
Interim Separate Statements of Profit or Loss		3
Interim Separate Statements of Comprehensive Income (Loss)		4
Interim Separate Statements of Changes in Equity		5
Interim Separate Statements of Cash Flows		6
Notes to the Interim Separate Financial Statements		8

Ernst & Young Han Young<br> <br>Taeyoung<br>Building, 111, Yeouigongwon-ro,<br> <br>Yeongdeungpo-gu, Seoul 07241 Korea<br> <br><br><br><br>Tel: +82 2 3787 6600<br> <br>Fax: +82 2 783 5890<br><br><br>ey.com/kr

Report on review of interim separate financial statements

(English Translation of a Report Originally Issued in Korean)

The Shareholders and Board of Directors

SK TelecomCo., Ltd.

We have reviewed the accompanying interim separate financial statements of SK Telecom Co., Ltd. (the “Company”), which comprise the interim separate statement of financial position as of September 30, 2022 , and the related interim separate statements of profit or loss and interim separate statements of comprehensive income (loss) for the three-month and nine-month periods ended September 30, 2022, interim separate statement of changes in equity and interim separate statement of cash flows for the nine-month period then ended, and a summary of significant accounting policies and other explanatory information.

Management’s responsibility for the interim separate financial statements

Management is responsible for the preparation and fair presentation of these interim separate financial statements in accordance with International Financial Reporting Standards as adopted by the Republic of Korea (“KIFRS”) 1034 Interim Financial Reporting, and for such internal controls as management determines is necessary to enable the preparation of interim separate financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s responsibility

Our responsibility is to express a conclusion on these interim separate financial statements based on our review.

We conducted our review in accordance with the Review Standards for Quarterly and Semiannual Financial Statements established by the Securities and Futures Commission of Republic of Korea. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Korean Standards on Auditing (“KSAs”) and, consequently, does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim separate financial statements are not prepared fairly, in all material respects, in accordance with KIFRS 1034 Interim Financial Reporting.

LOGO

Other matters

The interim separate statements of profit or loss and interim separate statements of comprehensive income (loss) for the three-month and nine-month periods ended September 30, 2021, interim separate statement of changes in equity and interim separate statement of cash flows for the nine-month period ended September 30, 2021, prepared in accordance with KIFRS 1034 and presented for comparative purposes, have been reviewed by KPMG Samjong Accounting Corp. whose review report dated November 12, 2021 expressed an unqualified review conclusion.

Moreover, the separate statement of financial position as of December 31, 2021, and the related separate statement of profit or loss, separate statement of comprehensive income, separate statement of changes in equity and separate statement of cash flows for the year then ended which have been audited by KPMG Samjong Accounting Corp., in accordance with KSAs (not presented herein), whose report dated March 10, 2022 expressed an unqualified opinion. The accompanying separate statement of financial position as of December 31, 2021 presented for comparative purposes is not different, in all material respects, from the above audited separate statement of financial position.

November 11, 2022

This report is effective as of November 11, 2022, the independent auditor’s review report date. Accordingly, certain material subsequent events or circumstances may have occurred during the period from the independent auditor’s review report date to the time this review report is used. Such events and circumstances could significantly affect the accompanying interim separate financial statements and may result in modification to this review report.

SK TELECOM CO., LTD.

INTERIM SEPARATE FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2022 AND DECEMBER 31, 2021 AND

FOR THE THREE-MONTH AND NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2022 AND 2021

The accompanying interim separate financial statements, including all footnote disclosures, were prepared by, and are the responsibility of, the Company.

Ryu, Young-Sang

Chief Executive Officer

SK TELECOM CO., LTD.

SK TELECOM CO., LTD.

Interim Separate Statements of Financial Position

As of September 30, 2022 and December 31, 2021

(In millions of won)		September 30, 2022(Unaudited)		December 31,2021
Assets
Current Assets:
Cash and cash equivalents	27,28	~~W~~	224,555		158,823
Short-term financial instruments	27,28		539,901		379,000
Accounts receivable – trade, net	4,27,28,29		1,556,149		1,514,260
Short-term loans, net	4,27,28		67,887		62,724
Accounts receivable – other, net	4,27,28,29,30		523,024		520,956
Contract assets	6,28		11,646		10,078
Prepaid expenses	5		1,927,723		1,913,419
Guarantee deposits	4,27,28,29		60,291		51,739
Derivative financial assets	27,28		215,443		25,428
Inventories, net			18,646		8,962
Non-current assets held for sale	33		20,000		20,000
Advanced payments and others	4,27,28		23,814		16,104
		****	5,189,079	****	4,681,493
Non-Current Assets:
Long-term financial instruments	27,28		107,954		354
Long-term investment securities	7,27,28		1,042,988		1,476,361
Investments in subsidiaries, associates and joint ventures	8,33		4,634,387		4,841,139
Property and equipment, net	9,11,29		8,978,508		9,318,408
Investment property, net	10		54,765		45,100
Goodwill			1,306,236		1,306,236
Intangible assets, net	12		2,745,288		3,203,330
Long-term loans, net	4,27,28,29		266		201
Long-term accounts receivable – other	4,27,28,30		223,450		287,179
Long-term contract assets	6,28		20,882		19,399
Long-term prepaid expenses	5		930,327		951,441
Guarantee deposits	4,27,28,29		98,041		106,091
Long-term derivative financial assets	27,28		256,876		152,084
Defined benefit assets	16		11,825		—
Other non-current assets			249		249
		****	20,412,042	****	21,707,572
Total Assets		~~W~~	25,601,121	****	26,389,065

(Continued)

SK TELECOM CO., LTD.

Interim Separate Statements of Financial Position, Continued

As of September 30, 2022 and December 31, 2021

(In millions of won)		September 30, 2022(Unaudited)			December 31,2021
Liabilities and Equity
Current Liabilities:
Accounts payable – other	27,28,29	~~W~~	1,301,901			2,072,195
Contract liabilities	6		70,892			72,624
Withholdings	27,28		700,863			608,069
Accrued expenses	27,28		810,081			764,863
Income tax payable	25		65,618			158,837
Provisions	15,32		67,347			54,137
Current portion of long-term debt, net	13,27,28		1,676,231			976,195
Lease liabilities	27,28,29		335,030			316,169
Current portion of long-term payables – other	14,27,28		397,206			398,823
Other current liabilities	27,28		12,956			4,565
		****	5,438,125	****	****	5,426,477	****
Non-Current Liabilities:
Debentures, excluding current portion, net	13,27,28		5,512,757			5,835,400
Long-term borrowings, excluding current portion, net	13,27,28		650,000			300,000
Long-term payables – other	14,27,28		1,234,199			1,611,010
Long-term contract liabilities	6		13,848			9,149
Long-term derivative financial liabilities	27,28		321,025			321,025
Long-term lease liabilities	27,28,29		1,029,190			1,045,926
Long-term provisions	15		29,850			42,432
Deferred tax liabilities	25		811,576			883,311
Defined benefit liabilities	16		—			6,902
Other non-current liabilities	27,28		44,781			44,577
		****	9,647,226	****	****	10,099,732	****
Total Liabilities		****	15,085,351	****	****	15,526,209	****
Equity:
Share capital	1,17		30,493			30,493
Capital surplus and others	17,18		(4,503,494	)		(4,576,271	)
Retained earnings	19		14,839,615			14,770,618
Reserves	20		149,156			638,016
Total Shareholder’s Equity		****	10,515,770	****	****	10,862,856	****
Total Liabilities and Shareholder’s Equity		~~W~~	25,601,121	****	****	26,389,065	****

The accompanying notes are an integral part of the interim separate financial statements.

SK TELECOM CO., LTD.

Interim Separate Statements of Profit or Loss

For the three-month and nine-month periods ended September 30, 2022 and 2021

(In millions of won, except for earnings per share)			2022<br>(Unaudited)						2021<br>(Unaudited)
	Note		Three-monthperiod endedSeptember 30			Nine-monthperiod endedSeptember 30			Three-monthperiod endedSeptember 30			Nine-monthperiod endedSeptember 30
Operating revenue:		21,29
Revenue			~~W~~	3,122,638			9,318,263			3,027,403			9,029,726
Operating expenses:		29
Labor				214,680			744,241			209,322			665,473
Commission		5		1,193,380			3,525,752			1,210,858			3,586,076
Depreciation and amortization				672,910			2,021,953			698,379			2,079,685
Network interconnection				134,187			418,653			137,265			415,857
Leased lines				48,622			141,579			50,754			160,474
Advertising				30,611			82,434			24,170			58,413
Rent				30,945			86,881			28,458			85,000
Cost of goods sold				137,582			396,350			107,386			323,409
Others		22		271,029			773,904			241,259			700,125
				2,733,946			8,191,747			2,707,851			8,074,512
Operating profit			****	388,692	****	****	1,126,516	****	****	319,552	****	****	955,214	****
Finance income		24		28,720			97,118			20,725			280,443
Finance costs		24		(85,446	)		(225,012	)		(69,348	)		(277,813	)
Other non-operating income		23		6,824			26,126			11,423			42,682
Other non-operating expenses		23		(3,026	)		(22,921	)		(10,057	)		(26,065	)
Gain (loss) relating to investments in subsidiaries, associates and joint ventures, net		8		96,913			97,863			(42,407	)		56,931
Profit before income tax			****	432,677	****	****	1,099,690	****	****	229,888	****	****	1,031,392	****
Income tax expense		25		127,534			318,067			71,495			222,975
Profit for the period			~~W~~	305,143	****	****	781,623	****	****	158,393	****	****	808,417	****
Earnings per share:		26
Basic earnings per share (in won)			~~W~~	1,383			3,535			435			2,241
Diluted earnings per share (in won)				1,382			3,533			434			2,239

The accompanying notes are an integral part of the interim separate financial statements.

SK TELECOM CO., LTD.

Interim Separate Statements of Comprehensive Income (Loss)

For the three-month and nine-month periods ended September 30, 2022 and 2021

(In millions of won) ****			2022<br>(Unaudited)						2021<br>(Unaudited)
	Note		Three-monthperiod endedSeptember 30			Nine-monthperiod endedSeptember 30			Three-monthperiod endedSeptember 30			Nine-monthperiod endedSeptember 30
Profit for the period			~~W~~	305,143	****	****	781,623	****	****	158,393	****	****	808,417	****
Other comprehensive income (loss):
Items that will never be reclassified to profit or loss, net of taxes:
Remeasurement of defined benefit liabilities		16		4,431			23,639			3,871			(7,860	)
Valuation gain (loss) on financial assets at fair value through other comprehensive<br>income		20		(119,388	)		(488,209	)		(378,088	)		321,438
Items that are or may be reclassified subsequently to profit or loss, net oftaxes:
Net change in unrealized fair value of derivatives		20		1,127			(2,746	)		4,558			14,118
Other comprehensive income (loss) for the period, net of taxes			****	(113,830	)	****	(467,316	)	****	(369,659	)	****	327,696	****
Total comprehensive income (loss)			~~W~~	191,313	****	****	314,307	****	****	(211,266	)	****	1,136,113	****

The accompanying notes are an integral part of the interim separate financial statements.

SK TELECOM CO., LTD.

Interim Separate Statements of Changes in Equity

For the nine-month periods ended September 30, 2022 and 2021

(In millions of won)					Capital surplus and others																Retainedearnings			Reserves			Total equity
	Note		Sharecapital		Paid-in surplus		Treasury shares			Hybrid bonds		Share option			Other			Sub-total
Balance as of January 1, 2021			~~W~~	44,639	****	2,915,887	****	(2,123,661	)	****	398,759	****	1,481	****	****	(903,332	)	****	289,134	****	****	16,684,640	****	****	331,445	****	****	17,349,858	****
Total comprehensive income:
Profit for the period				—		—		—			—		—			—			—			808,417			—			808,417
Other comprehensive<br><br><br>income (loss)		16,20		—		—		—			—		—			—			—			(7,860	)		335,556			327,696
				—		—		—			—		—			—			—			800,557			335,556			1,136,113
Transactions with owners:
Annual dividends				—		—		—			—		—			—			—			(641,944	)		—			(641,944	)
Interim dividends				—		—		—			—		—			—			—			(177,902	)		—			(177,902	)
Share option		18		—		—		—			—		407			—			407			—			—			407
Interest on hybrid bonds				—		—		—			—		—			—			—			(11,075	)		—			(11,075	)
Acquisition of treasury shares		17		—		—		(72,982	)		—		—			—			(72,982	)		—			—			(72,982	)
Disposal of treasury shares		17		—		—		27,096			—		—			2,707			29,803			—			—			29,803
Retirement of treasury shares		17		—		—		1,965,952			—		—			—			1,965,952			(1,965,952	)		—			—
				—		—		1,920,066			—		407			2,707			1,923,180			(2,796,873	)		—			(873,693	)
Balance as of September 30, 2021 (Unaudited)			~~W~~	44,639	****	2,915,887	****	(203,595	)	****	398,759	****	1,888	****	****	(900,625	)	****	2,212,314	****	****	14,688,324	****	****	667,001	****	****	17,612,278	****
Balance as of January 1, 2022			~~W~~	30,493	****	1,771,000	****	(57,314	)	****	398,759	****	47,166	****	****	(6,735,882	)	****	(4,576,271	)	****	14,770,618	****	****	638,016	****	****	10,862,856	****
Total comprehensive income (loss):
Profit for the period				—		—		—			—		—			—			—			781,623			—			781,623
Other comprehensive<br><br><br>income (loss)		16,20		—		—		—			—		—			—			—			21,544			(488,860	)		(467,316	)
				—		—		—			—		—			—			—			803,167			(488,860	)		314,307
Transactions with owners:
Annual dividends				—		—		—			—		—			—			—			(361,186	)		—			(361,186	)
Interim dividends				—		—		—			—		—			—			—			(361,909	)		—			(361,909	)
Share option		18		—		—		—			—		48,481			28,395			76,876			—			—			76,876
Interest on hybrid bonds				—		—		—			—		—			—			—			(11,075	)		—			(11,075	)
Transactions of treasury shares		17,18		—		—		20,612			—		(92,234	)		67,523			(4,099	)		—			—			(4,099	)
				—		—		20,612			—		(43,753	)		95,918			72,777			(734,170	)		—			(661,393	)
Balance as of September 30, 2022 (Unaudited)			~~W~~	30,493	****	1,771,000	****	(36,702	)	****	398,759	****	3,413	****	****	(6,639,964	)	****	(4,503,494	)	****	14,839,615	****	****	149,156	****	****	10,515,770	****

The accompanying notes are an integral part of the interim separate financial statements.

SK TELECOM CO., LTD.

Interim Separate Statements of Cash Flows

For the nine-month periods ended September 30, 2022 and 2021

(In millions of won)		2022(Unaudited)			2021(Unaudited)
Cash flows from operating activities:
Cash generated from operating activities:
Profit for the period		~~W~~	781,623			808,417
Adjustments for income and expenses	31		2,632,344			2,426,844
Changes in assets and liabilities related to operating activities	31		(111,573	)		(291,231	)
			3,302,394			2,944,030
Interest received			18,086			17,005
Dividends received			49,637			195,618
Interest paid			(162,505	)		(154,051	)
Income tax paid			(351,958	)		(248,832	)
Net cash provided by operating activities			2,855,654			2,753,770
Cash flows from investing activities:
Cash inflows from investing activities:
Decrease in short-term financial instruments, net			—			167,000
Decrease in long-term financial instruments			222,432			—
Collection of short-term loans			88,389			108,021
Proceeds from disposals of long-term investment securities			54,386			15,501
Proceeds from disposals of investments in subsidiaries, associates and joint ventures			382,114			130,626
Proceeds from disposals of property and equipment			2,147			43,853
Proceeds from disposals of intangible assets			3,680			668
			753,148			465,669
Cash outflows for investing activities:
Increase in short-term financial instruments, net			(160,901	)		—
Increase in long-term financial instruments			(330,032	)		—
Increase in short-term loans			(93,673	)		(79,115	)
Acquisitions of long-term investment securities			(264,072	)		(24,912	)
Acquisitions of investments in subsidiaries, associates and joint ventures			(68,571	)		(411,885	)
Acquisitions of property and equipment			(1,646,867	)		(1,403,264	)
Acquisitions of intangible assets			(19,096	)		(67,573	)
			(2,583,212	)		(1,986,749	)
Net cash used in investing activities		~~W~~	(1,830,064	)	****	(1,521,080	)

(Continued)

SK TELECOM CO., LTD.

Interim Separate Statements of Cash Flows, Continued

For the nine-month periods ended September 30, 2022 and 2021

(In millions of won)	2022<br>(Unaudited)			2021<br>(Unaudited)
Cash flows from financing activities:			****
Cash inflows from financing activities:
Proceeds from long-term borrowings	~~W~~	350,000			300,000
Proceeds from issuance of debentures		741,970			308,757
Cash inflows from settlement of derivatives		768			10
		1,092,738			608,767
Cash outflows for financing activities:
Repayments of long-term borrowings		(7,096	)		(6,417	)
Repayments of long-term payables – other		(400,245	)		(425,349	)
Repayments of debentures		(660,000	)		(360,000	)
Payments of dividends		(723,062	)		(819,846	)
Payments of interest on hybrid bonds		(11,075	)		(11,075	)
Repayments of lease liabilities		(251,120	)		(248,175	)
Acquisition of treasury shares		—			(72,982	)
		(2,052,598	)		(1,943,844	)
Net cash used in financing activities	****	(959,860	)	****	(1,335,077	)
Net increase (decrease) in cash and cash equivalents	****	65,730	****	****	(102,387	)
Cash and cash equivalents at beginning of the period		158,823			329,208
Effects of exchange rate changes on cash and cash equivalents		2			24
Cash and cash equivalents at end of the period	~~W~~	224,555	****	****	226,845	****

The accompanying notes are an integral part of the interim separate financial statements.

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2022 and 2021 (Unaudited)

1.	Reporting Entity

SK Telecom Co., Ltd. (the “Company”) was incorporated in March 1984 under the laws of the Republic of Korea (“Korea”) to provide cellular telephone communication services in Korea. The Company mainly provides wireless telecommunications services in Korea. The head office of the Company is located at 65, Eulji-ro, Jung-gu, Seoul, Korea.

The Company’s common shares and depositary receipts (“DRs”) are listed on the Stock Market of Korea Exchange, the New York Stock Exchange and the London Stock Exchange. As of September 30, 2022, the Company’s total issued shares are held by the following shareholders:


SK Inc.	65,668,397	30.01
National Pension Service	17,323,760	7.91
Institutional investors and other shareholders	131,193,409	59.95
Kakao Corp.	3,846,487	1.76
Treasury shares	801,091	0.37
	218,833,144	100.00

On November 1, 2021, the date of spin-off, the Company completed the spin-off of its businesses of managing investments in semiconductor, New Information and Communication Technologies (“ICT”) and other businesses and making new investments.

2.	Basis of Preparation
(1)	Statement of compliance
---	---

These interim condensed separate financial statements were prepared in accordance with Korean International Financial Reporting Standard (“KIFRS”) 1034 Interim Financial Reporting as part of the period covered by the Company’s KIFRS annual financial statements. Selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in financial position and performance of the Company since December 31, 2021. These interim separate financial statements do not include all of the disclosures required for full annual financial statements. The accompanying interim separate financial statements have been translated into English from the Korean language financial statements. In the event of any differences in interpreting the financial statements or the independent auditor’s review report thereon, the Korean version, which is used for regulatory reporting purposes, shall prevail.

These interim financial statements are interim separate financial statements prepared in accordance with KIFRS 1027 Separate Financial Statements presented by a parent, an investor with joint control of or significant influence over an investee, in which the investments are accounted for at cost.

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2022 and 2021 (Unaudited)

2.	Basis of Preparation, Continued
(2)	Use of estimates and judgments
---	---
1)	Critical judgments, assumptions and estimation uncertainties
---	---

The preparation of the interim separate financial statements in conformity with KIFRS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.

In preparing these interim separate financial statements, the significant judgments made by management in applying the Company’s accounting policies and the key sources of estimation uncertainty were the same as those that applied to the separate financial statements as of and for the year ended December 31, 2021.

2)	Fair value measurement

A number of the Company’s accounting policies and disclosures require the measurement of fair values, for both financial and non-financial assets and liabilities. The Company has established policies and processes with respect to the measurement of fair values, including Level 3 fair values, and the measurement of fair values is reviewed and is directly reported to the finance executives.

The Company regularly reviews significant unobservable inputs and valuation adjustments. If third party information, such as broker quotes or pricing services, is used to measure fair values, then the Company assesses the evidence obtained from the third parties to support the conclusion that such valuations meet the requirements of KIFRS, including the level in the fair value hierarchy in which such valuations should be classified.

When measuring the fair value of an asset or a liability, the Company uses market observable data as far as possible. Fair values are categorized into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows:

•	Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities;<br>
•	Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or<br>liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and
---	---
•	Level 3: inputs for the asset or liability that are not based on observable market data (unobservable<br>inputs).
---	---

If the inputs used to measure the fair value of an asset or a liability fall into different levels of the fair value hierarchy, then the fair value measurement is categorized in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement. The Company recognizes transfers between levels of the fair value hierarchy at the end of the reporting period during which the change has occurred.

Information about assumptions used for fair value measurements is included in note 28.

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2022 and 2021 (Unaudited)

3.	Significant Accounting Policies

The significant accounting policies applied by the Company in these interim separate financial statements are the same as those applied by the Company in its separate financial statements as of and for the year ended December 31, 2021, except for the adoption of new and revised KIFRS applied from January 1, 2022, which are summarized below. The Company has not early applied the new and revised KIFRS and interpretations that have been issued but are not yet effective.

•	Onerous Contracts – Cost of Fulfilling a Contract (Amendments to KIFRS 1037).
•	Reference to Conceptual Framework (Amendments to KIFRS 1103).
---	---
•	Property, Plant and Equipment: Proceeds before Intended Use (Amendments to KIFRS 1016).
---	---
•	Annual Improvements to KIFRS 2018-2020.
---	---

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2022 and 2021 (Unaudited)

4.	Trade and Other Receivables
(1)	Details of trade and other receivables as of September 30, 2022 and December 31, 2021 are as follows:<br>
---	---
(In millions of won)	September 30, 2022
---	---	---	---	---	---	---	---
	Gross amount		Lossallowance			Carrying amount
Current assets:
Accounts receivable – trade	~~W~~	1,653,041		(96,892	)		1,556,149
Short-term loans		68,577		(690	)		67,887
Accounts receivable – other(*)		557,618		(34,594	)		523,024
Guarantee deposits		60,291		—			60,291
Accrued income		1,589		—			1,589
		2,341,116		(132,176	)		2,208,940
Non-current assets:
Long-term loans		41,304		(41,038	)		266
Long-term accounts receivable – other(*)		223,450		—			223,450
Guarantee deposits		98,041		—			98,041
		362,795		(41,038	)		321,757
	~~W~~	2,703,911		(173,214	)		2,530,697
(*)	Gross and carrying amounts of accounts receivable – other as of September 30, 2022 include<br>~~W~~373,999 million of financial instruments classified as fair value through profit or loss (“FVTPL”).
---	---
(In millions of won)	December 31, 2021
---	---	---	---	---	---	---	---
	Gross amount		Lossallowance			Carrying amount
Current assets:
Accounts receivable – trade	~~W~~	1,607,022		(92,762	)		1,514,260
Short-term loans		63,358		(634	)		62,724
Accounts receivable – other(*)		556,141		(35,185	)		520,956
Guarantee deposits		51,739		—			51,739
Accrued income		331		—			331
		2,278,591		(128,581	)		2,150,010
Non-current assets:
Long-term loans		41,238		(41,037	)		201
Long-term accounts receivable – other(*)		287,179		—			287,179
Guarantee deposits		106,091		—			106,091
		434,508		(41,037	)		393,471
	~~W~~	2,713,099		(169,618	)		2,543,481
(*)	Gross and carrying amounts of accounts receivable – other as of December 31, 2021 include<br>~~W~~459,959 million of financial instruments classified as fair value through profit or loss (“FVTPL”).
---	---

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2022 and 2021 (Unaudited)

4.	Trade and Other Receivables, Continued
(2)	Changes in the loss allowance on trade and other receivables measured at amortized cost for the nine-month<br>periods ended September 30, 2022 and 2021 are as follows:
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---	---	---	---
	January 1, 2022		Impairment		*Write-offs()**			Collection ofreceivablespreviouslywritten-off		September 30,2022
Accounts receivable – trade	~~W~~	92,762		14,387		(17,349	)		7,092		96,892
Accounts receivable – other, etc.		76,856		1,543		(3,278	)		1,201		76,322
	~~W~~	169,618		15,930		(20,627	)		8,293		173,214
(In millions of won)
---	---	---	---	---	---	---	---	---	---	---	---
	January 1, 2021		Impairment		*Write-offs()**			Collection ofreceivablespreviouslywritten-off		September 30,2021
Accounts receivable – trade	~~W~~	102,308		6,994		(16,998	)		7,692		99,996
Accounts receivable – other, etc.		76,170		1,680		(2,750	)		1,325		76,425
	~~W~~	178,478		8,674		(19,748	)		9,017		176,421
(*)	The Company writes off trade and other receivables that are determined to be uncollectable due to reasons such<br>as termination of operations or bankruptcy.
---	---
(3)	The Company applies the practical expedient that allows the Company to estimate the loss allowance for accounts<br>receivable – trade at an amount equal to the lifetime expected credit losses. The expected credit losses include the forward-looking information. To make the assessment, the Company uses its historical credit loss experience over the past three<br>years and classifies accounts receivable – trade by their credit risk characteristics and days overdue.
---	---

As the Company is a wireless telecommunications service provider, the Company’s financial assets measured at amortized cost primarily consist of receivables from numerous individual customers, and, therefore, no significant credit concentration risk arises.

Receivables related to other revenue mainly consist of receivables from corporate customers. The Company transacts only with corporate customers with credit ratings that are considered to be low at credit risk. In addition, the Company is not exposed to significant credit concentration risk as the Company regularly assesses their credit risk by monitoring their credit ratings. While the contract assets are subject to the impairment requirements, no significant expected credit loss has been identified.

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2022 and 2021 (Unaudited)

5.	Prepaid Expenses

The Company pays commissions to its retail stores and authorized dealers for wireless telecommunications services. The Company capitalized certain costs associated with commissions paid to retail stores and authorized dealers to obtain new and retained customer contracts as prepaid expenses. These prepaid expenses are amortized on a straight-line basis over the periods that the Company expects to maintain its customers.

(1)	Details of prepaid expenses as of September 30, 2022 and December 31, 2021 are as follows:<br>
(In millions of won)
---	---	---	---	---
	September 30, 2022		December 31, 2021
Current assets:
Incremental costs of obtaining contracts	~~W~~	1,888,517		1,878,149
Others		39,206		35,270
	~~W~~	1,927,723		1,913,419
Non-current assets:
Incremental costs of obtaining contracts	~~W~~	909,229		931,655
Others		21,098		19,786
	~~W~~	930,327		951,441
(2)	Incremental costs of obtaining contracts
---	---

The amortization in connection with incremental costs of obtaining contracts recognized for the three and nine-month periods ended September 30, 2022 and 2021 are as follows:

(In millions of won)	2022				2021
	Three-monthperiod endedSeptember 30		Nine-monthperiod endedSeptember 30		Three-monthperiod endedSeptember 30		Nine-monthperiod endedSeptember 30
Amortization recognized	~~W~~	608,550		1,813,286		665,834		1,962,333

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2022 and 2021 (Unaudited)

6.	Contract Assets and Liabilities

In case of providing both wireless telecommunication services and sales of handsets, the Company allocated the consideration based on relative stand-alone selling prices and recognized unbilled receivables from handset sales as contract assets. The Company recognized receipts in advance for prepaid telecommunications services and unearned revenue for customer loyalty programs as contract liabilities.

(1)	Details of contract assets and liabilities as of September 30, 2022 and December 31, 2021 are as<br>follows:
(In millions of won)
---	---	---	---	---
	September 30, 2022		December 31, 2021
Contract assets:
Allocation of consideration between performance obligations	~~W~~	32,528		29,477
Contract liabilities:
Wireless service contracts		19,054		18,397
Customer loyalty programs		8,123		12,699
Others		57,563		50,677
	~~W~~	84,740		81,773
(2)	The amount of revenue recognized for the nine-month periods ended September 30, 2022 and 2021 related to<br>the contract liabilities carried forward from the previous year are ~~W~~46,120 million and ~~W~~54,282 million, respectively.
---	---

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2022 and 2021 (Unaudited)

7.	Investment Securities
(1)	There were no short-term investment securities as of September 30, 2022 and December 31, 2021.<br>
---	---
(2)	Details of long-term investment securities as of September 30, 2022 and December 31, 2021 are as<br>follows:
---	---
(In millions of won)
---	---	---	---	---	---
	Category	September 30, 2022		December 31, 2021
Equity instruments	FVOCI(*)	~~W~~	943,786		1,383,223
Debt instruments	FVTPL		99,202		93,138
		~~W~~	1,042,988		1,476,361
(*)	The Company designated investments in equity instruments that are not held for trading as financial assets at<br>FVOCI, and the amounts of those equity instruments as of September 30, 2022 and December 31, 2021 are ~~W~~943,786 million and ~~W~~1,383,223 million, respectively.
---	---

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2022 and 2021 (Unaudited)

8.	Investments in Subsidiaries, Associates and Joint Ventures
(1)	Investments in subsidiaries, associates and joint ventures as of September 30, 2022 and December 31,<br>2021 are as follows:
---	---
(In millions of won)
---	---	---	---	---
	September 30, 2022		December 31, 2021
Investments in subsidiaries	~~W~~	3,200,632		3,148,741
Investments in associates and joint ventures		1,433,755		1,692,398
	~~W~~	4,634,387		4,841,139
(2)	Details of investments in subsidiaries as of September 30, 2022 and December 31, 2021 are as follows:<br>
---	---
(In millions of won, except for share data)
---	---	---	---	---	---	---	---	---
	September 30, 2022						December 31, 2021
	Number ofshares		Ownership<br>(%)		Carryingamount		Carrying<br>amount
SK Telink Co., Ltd.		1,432,627		100.0	~~W~~	243,988		243,988
SK Broadband Co., Ltd.		298,460,212		74.3		2,195,452		2,195,452
SK Communications Co., Ltd.		43,427,530		100.0		24,927		24,927
PS&Marketing Corporation		66,000,000		100.0		313,934		313,934
SERVICE ACE Co., Ltd.		4,385,400		100.0		21,927		21,927
SK Telecom China Holdings Co., Ltd.		—		100.0		48,096		48,096
SK Telecom Americas, Inc.		122		100.0		31,203		31,203
Atlas Investment(*1)		—		100.0		159,400		155,656
SK stoa Co., Ltd.		3,631,355		100.0		40,029		40,029
Broadband Nowon Co., Ltd.		1,140,000		100.0		19,975		19,975
Quantum Innovation Fund I(*2)		—		59.9		11,626		11,935
SAPEON Korea Inc.(*3)		—		—		—		—
SAPEON Inc.(*4)		4,000		62.5		48,456		—
SK O&S Co., Ltd. and others		—		—		41,619		41,619
					~~W~~	3,200,632		3,148,741
(*1)	The Company additionally acquired shares for the nine-month period<br>ended September 30, 2022, but there is no change in the ownership interest.
---	---
(*2)	The Company additionally contributed ~~W~~240 million in cash for the nine-month period ended<br>September 30, 2022, and ~~W~~549 million of investment was returned to the Company after the additional contribution, but there is no change in the ownership interest.
---	---
(*3)	The Company newly established SAPEON Korea Inc., and disposed the entire shares of SAPEON Korea Inc. to SAPEON<br>Inc. at ~~W~~40,000 million from which it recognized ~~W~~22,062 million of gain relating to investments in subsidiaries for the nine-month period ended September 30, 2022.
---	---
(*4)	The Company newly established SAPEON Inc., and the ownership interest of the Company has changed from 100% to<br>62.5% due to unequal paid-in capital increase for the nine-month period ended September 30, 2022.
---	---

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2022 and 2021 (Unaudited)

8.	Investments in Subsidiaries, Associates and Joint Ventures, Continued
(3)	Details of investments in associates and joint ventures as of September 30, 2022 and December 31,<br>2021 are as follows:
---	---
(In millions of won, except for share data)
---	---	---	---	---	---	---	---	---
	September 30, 2022						December 31, 2021
	Number ofshares		Ownership<br>(%)		Carryingamount		Carrying<br>amount
Investments in associates:
SK China Company Ltd.		10,928,921		27.3	~~W~~	601,192		601,192
Korea IT Fund(*1)		190		63.3		220,957		220,957
HanaCard Co., Ltd.(*2)		—		—		—		253,739
SK Technology Innovation Company		14,700		49.0		45,864		45,864
S.M. Culture & Contents Co., Ltd.		22,033,898		23.1		65,341		65,341
SK South East Asia Investment Pte. Ltd.		300,000,000		20.0		344,240		344,240
Pacific Telecom Inc.(*3)		1,734,109		15.0		36,487		36,487
Digital Games International Pte. Ltd.(*3,4)		4,900,000		16.3		2,224		4,539
Invites Healthcare Co., Ltd.		489,999		31.1		35,000		35,000
CMES Inc.(*3,5)		42,520		7.7		900		—
12CM JAPAN and others(*3,6)		—		—		75,550		75,864
						1,427,755		1,683,223
Investments in joint ventures:
Finnq Co., Ltd.(*7)		—		—		—		7,175
UTC Kakao-SK Telecom ESG Fund(*8)		—		48.2		6,000		2,000
						6,000		9,175
					~~W~~	1,433,755		1,692,398

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2022 and 2021 (Unaudited)

8.	Investments in Subsidiaries, Associates and Joint Ventures, Continued
(3)	Details of investments in associates and joint ventures as of September 30, 2022 and December 31,<br>2021 are as follows, Continued:
---	---
(*1)	Investments in Korea IT Fund was classified as investment in associates as the Company does not have control<br>over the investee under the contractual agreement with other shareholders.
---	---
(*2)	The Company disposed the entire shares of HanaCard Co., Ltd. to Hana Financial Group Inc. at<br>~~W~~330,032 million in cash from which it recognized ~~W~~76,293 million of gain relating to investments in associates for the nine-month period ended September 30, 2022.
---	---
(*3)	These investments were classified as investments in associates as the Company can exercise significant<br>influence through its right to appoint the members of the Board of Directors even though the Company has less than 20% of equity interests.
---	---
(*4)	The Company disposed the shares of Digital Games International Pte. Ltd. (~~W~~2,315 million) for<br>the nine-month period ended September 30, 2022.
---	---
(*5)	As the Company obtained significant influence over the investee, ~~W~~900 million of<br>financial assets at FVOCI are reclassified to investments in associates for the nine-month period ended September 30, 2022.
---	---
(*6)	The Company additionally contributed ~~W~~2,000 million in cash to Smart SKT-Infinitum Game Fund for the nine-month period ended September 30, 2022. The Company disposed the shares of Start-up Win-Win<br>Fund (~~W~~4,850 million) for ~~W~~5,800 million in cash from which it recognized ~~W~~950 million of gain relating to investments in associates for the nine-month period ended September 30,<br>2022. In addition, the Company newly contributed ~~W~~2,000 million in cash to KB ESG Fund of the three telecommunications companies for the nine-month period ended September 30, 2022.
---	---
(*7)	The Company disposed the entire shares of Finnq Co., Ltd. to Hana Financial Group Inc. for<br>~~W~~5,733 in cash from which it recognized ~~W~~1,441 million of loss relating to investments in joint ventures for the nine-month period ended September 30, 2022.
---	---
(*8)	The Company additionally contributed ~~W~~4,000 million in cash for the nine-month period<br>ended September 30, 2022, but there is no change in the ownership interest. These investments were classified as investments in joint ventures, considering that the Company has a joint control pursuant to the agreement with the other<br>shareholders.
---	---
(4)	The market value of investments in listed associates as of September 30, 2022 and December 31, 2021<br>are as follows:
---	---
(In millions of won, except for share data)
---	---	---	---	---	---	---	---	---	---	---	---	---
	September 30, 2022						December 31, 2021
	Market priceper share(in won)		Number ofshares		Marketvalue		Market price<br>per share (inwon)		Number ofshares		Marketvalue
S.M.Culture & Contents Co., Ltd.	~~W~~	3,100		22,033,898		68,305		4,485		22,033,898		98,822

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2022 and 2021 (Unaudited)

9.	Property and Equipment
Changes	in property and equipment for the nine-month periods ended September 30, 2022 and 2021 are as<br>
---	---
follows:
---
(In millions of won)
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	For the nine-month period ended September 30, 2022
	Beginningbalance		Acquisition		Disposal			Transfer			Depreciation			Ending<br>balance
Land	~~W~~	621,614		—		(89	)		18,791			—			640,316
Buildings		564,976		287		(112	)		32,644			(31,019	)		566,776
Structures		290,813		150		(20	)		9,194			(28,605	)		271,532
Machinery		5,331,485		33,858		(35,860	)		1,066,611			(1,191,728	)		5,204,366
Right-of-use<br>assets		1,370,897		291,538		(28,753	)		(18,332	)		(263,321	)		1,352,029
Other		439,982		474,447		(513	)		(485,257	)		(60,306	)		368,353
Construction in progress		698,641		567,644		(1,709	)		(689,440	)		—			575,136
	~~W~~	9,318,408		1,367,924		(67,056	)		(65,789	)		(1,574,979	)		8,978,508
(In millions of won)
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	For the nine -month period ended September 30, 2021
	Beginningbalance		Acquisition		Disposal			Transfer			Depreciation			Ending<br>balance
Land	~~W~~	638,371		192		(20,570	)		25,367			—			643,360
Buildings		587,958		1,676		(8,973	)		40,601			(31,691	)		589,571
Structures		316,895		270		(6,115	)		13,064			(28,465	)		295,649
Machinery		5,354,992		61,748		(4,152	)		991,450			(1,185,678	)		5,218,360
Right-of-use<br>assets		1,323,111		367,499		(43,855	)		—			(273,100	)		1,373,655
Other		405,140		475,203		(647	)		(421,247	)		(60,452	)		397,997
Construction in progress		531,081		573,868		—			(662,828	)		—			442,121
	~~W~~	9,157,548		1,480,456		(84,312	)		(13,593	)		(1,579,386	)		8,960,713

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2022 and 2021 (Unaudited)

10.	Investment Property
(1)	Changes in investment property for the nine-month period ended September 30, 2022 are as follows:<br>
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---	---	---
	For the nine-month period ended September 30, 2022
	Beginningbalance		Transfer			Depreciation			Endingbalance
Land	~~W~~	17,084		(410	)		—			16,674
Buildings		21,768		(653	)		(1,474	)		19,641
Right-of-use<br>assets		6,248		17,851			(5,649	)		18,450
	~~W~~	45,100		16,788			(7,123	)		54,765
(2)	The Company recognized lease income of ~~W~~16,841 million for the nine-month period ended<br>September 30, 2022 from investment property.
---	---
11.	Leases
---	---
(1)	Details of the right-of-use<br>assets as of September 30, 2022 and December 31, 2021 are as follows:
---	---
(In millions of won)
---	---	---	---	---
	September 30, 2022		December 31, 2021
Land, buildings and structures	~~W~~	1,137,807		1,139,024
Others		214,222		231,873
	~~W~~	1,352,029		1,370,897
(2)	Details of amounts recognized in the interim separate statements of profit or loss for the nine-month periods<br>ended September 30, 2022 and 2021 as a lessee are as follows:
---	---
(In millions of won)
---	---	---	---	---
	For the nine-month period ended
	September 30, 2022		September 30, 2021
Depreciation of<br>right-of-use assets:
Land, buildings and structures	~~W~~	209,083		218,196
Others		54,238		54,904
	~~W~~	263,321		273,100
Interest expense on lease liabilities	~~W~~	17,917		13,723

Expenses related to short-term leases and leases of low-value assets the Company recognized are immaterial.

(3)	The total cash outflows due to lease payments for the nine-month periods ended September 30, 2022 and 2021<br>amounted to ~~W~~269,169 million and ~~W~~261,954 million, respectively.

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2022 and 2021 (Unaudited)

12.	Intangible Assets
(1)	Changes in intangible assets for the nine-month periods ended September 30, 2022 and 2021 are as follows:<br>
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	For the nine-month period ended September 30, 2022
	Beginningbalance		Acquisition		Disposal			Transfer			Amortization			Ending<br>balance
Frequency usage rights	~~W~~	2,559,689		—		—			—			(357,585	)		2,202,104
Land usage rights		2,449		—		—			—			(1,053	)		1,396
Industrial rights		10,934		9,022		(683	)		(111	)		(3,251	)		15,911
Facility usage rights		14,355		907		(1	)		130			(2,080	)		13,311
Club memberships(*1)		51,356		832		(572	)		—			—			51,616
Other(*2)		564,547		8,335		(382	)		65,417			(176,967	)		460,950
	~~W~~	3,203,330		19,096		(1,638	)		65,436			(540,936	)		2,745,288
(In millions of won)
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	For the nine-month period ended September 30, 2021
	Beginningbalance		Acquisition		Disposal			Transfer		Amortization			Ending<br>balance
Frequency usage rights	~~W~~	1,932,765		219,577		—			—		(386,809	)		1,765,533
Land usage rights		4,103		110		(33	)		—		(1,333	)		2,847
Industrial rights		9,659		2,846		—			—		(1,967	)		10,538
Facility usage rights		15,061		869		(7	)		102		(2,012	)		14,013
Club memberships(*1)		50,698		73		(120	)		—		—			50,651
Other(*2)		652,797		6,876		(62	)		39,260		(215,153	)		483,718
	~~W~~	2,665,083		230,351		(222	)		39,362		(607,274	)		2,327,300
(*1)	Club memberships are classified as intangible assets with indefinite useful lives and are not amortized.<br>
---	---
(*2)	Other intangible assets primarily consist of computer software and others.
---	---
(2)	Details of frequency usage rights as of September 30, 2022 are as follows:
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---
	Amount		Description		Commencementof amortization		Completion ofamortization
800 MHz license	~~W~~	164,683		LTE service		Jul. 2021		Jun. 2026
1.8 GHz license		440,763		LTE service		Dec. 2021		Dec. 2026
2.6 GHz license		516,025		LTE service		Sept. 2016		Dec. 2026
2.1 GHz license		331,256		W-CDMA and LTE service		Dec. 2021		Dec. 2026
3.5 GHz license		742,704		5G service		Apr. 2019		Nov. 2028
28 GHz license		6,673		5G service		Jan. 2021		Nov. 2023
	~~W~~	2,202,104

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2022 and 2021 (Unaudited)

13.	Borrowings and Debentures
(1)	Changes in long-term borrowings for the nine-month period ended September 30, 2022 are as follows:<br>
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---	---
	Lender		Annual interest<br>rate (%)		Maturity		Book value
Current							~~W~~	6,728
Non-current								300,000
As of January 1, 2022								306,728
New long-term borrowings:		DBS Bank Ltd.		2.68		Mar. 10, 2025		200,000
		Credit Agricole CIB		3.30		Apr. 29, 2024		50,000
		Mizuho Bank, Ltd.		3.29		Nov. 27, 2023		100,000
								350,000
Repayments of long-term borrowings:		Export Kreditnamnden		1.70		Apr. 29, 2022		(7,096	)
Other changes(*)								368
Non-current								650,000
As of September 30, 2022							~~W~~	650,000
(*)	Other changes include the effects on foreign currency translation of long-term borrowings and changes in<br>present value discount on long-term borrowings for the nine-month period ended September 30, 2022.
---	---

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2022 and 2021 (Unaudited)

13.	Borrowings and Debentures, Continued
(2)	Changes in debentures for the nine-month period ended September 30, 2022 are as follows:<br>
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---	---	---	---	---
	Purpose		Annual interestrate (%)		Maturity		Face value			Book value
Current							~~W~~	970,000			969,467
Non-current								5,852,600			5,835,400
As of January 1, 2022								6,822,600			6,804,867
Debentures newly issued:
Unsecured corporate bonds		Refinancing fund		3.80		Apr. 12, 2025		240,000			238,999
				3.84		Apr. 12, 2027		70,000			69,694
				3.78		Apr. 12, 2042		40,000			39,810
				4.00		Aug. 8, 2025		300,000			298,835
				4.00		Aug. 10, 2027		95,000			94,632
								745,000			741,970
Debentures repaid:
Unsecured corporate bonds		Operating and<br>refinancing fund		2.40		Feb. 26, 2022		(100,000	)		(100,000	)
		Operating fund		2.03		Mar. 6, 2022		(180,000	)		(180,000	)
		Refinancing fund		2.17		Apr. 25, 2022		(120,000	)		(120,000	)
		Operating and<br>refinancing fund		1.40		Jul. 29, 2022		(120,000	)		(120,000	)
				3.30		Aug. 28, 2022		(140,000	)		(140,000	)
								(660,000	)		(660,000	)
Other changes(*1)								299,160			302,151
Current(*2)								1,677,400			1,676,231
Non-current(*2)								5,529,360			5,512,757
As of September 30, 2022							~~W~~	7,206,760			7,188,988
(*1)	Other changes include the effects on foreign currency translation of debentures and changes in discount on<br>issuance of debentures for the nine-month period ended September 30, 2022.
---	---
(*2)	~~W~~1,366,764 million were reclassified from<br>non-current to current for the nine-month period ended September 30, 2022.
---	---

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2022 and 2021 (Unaudited)

14.	Long-Term Payables – Other
(1)	As of September 30, 2022 and December 31, 2021, details of long-term payables – other related to<br>the acquisition of frequency usage rights are as follows (See note 12):
---	---
(In millions of won)
---	---	---	---	---	---	---
	September 30, 2022			December 31, 2021
Long-term payables – other	~~W~~	1,690,470			2,090,715
Present value discount on long-term payables – other		(59,065	)		(80,882	)
Current installments of long-term payables – other		(397,206	)		(398,823	)
Carrying amount at period end	~~W~~	1,234,199			1,611,010
(2)	The principal amount of long-term payables – other repaid for the nine-month periods ended<br>September 30, 2022 and 2021 are ~~W~~400,245 million and ~~W~~425,349 million, respectively. The repayment schedule of the principal amount of long-term payables – other as of September 30, 2022 is<br>as follows:
---	---
(In millions of won)
---	---	---
	Amount
Less than 1 year	~~W~~	400,245
1 ~ 3 years		738,300
3 ~ 5 years		460,538
More than 5 years		91,387
	~~W~~	1,690,470
15.	Provisions
---	---

Changes in provisions for the nine-month periods ended September 30, 2022 and 2021 are as follows:

(In millions of won)	For the nine-month period ended September 30, 2022												As of September 30, 2022
	Beginningbalance		Increase		Utilization			Reversal			Endingbalance		Current		Non-current
Provision for restoration	~~W~~	94,684		4,383		(3,641	)		(503	)		94,923		65,073		29,850
Emission<br><br><br>allowance		1,885		1,934		—			(1,545	)		2,274		2,274		—
	~~W~~	96,569		6,317		(3,641	)		(2,048	)		97,197		67,347		29,850
(In millions of won)	For the nine-month period ended September 30, 2021												As of September 30, 2021
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	Beginningbalance		Increase		Utilization			Reversal			Endingbalance		Current		Non-current
Provision for restoration	~~W~~	91,966		6,790		(4,093	)		—			94,663		55,356		39,307
Emission<br><br><br>allowance		7,424		897		(1,091	)		(5,346	)		1,884		1,884		—
	~~W~~	99,390		7,687		(5,184	)		(5,346	)		96,547		57,240		39,307

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2022 and 2021 (Unaudited)

16.	Defined Benefit Liabilities (Assets)
(1)	Details of defined benefit liabilities (assets) as of September 30, 2022 and December 31, 2021 are as<br>follows:
---	---
(In millions of won)
---	---	---	---	---	---	---
	September 30, 2022			December 31, 2021
Present value of defined benefit obligations	~~W~~	476,669			483,001
Fair value of plan assets		(488,494	)		(476,099	)
	~~W~~	(11,825	)		6,902
(2)	Changes in present value of defined benefit obligations for the nine-month periods ended September 30,<br>2022 and 2021 are as follows:
---	---
(In millions of won)
---	---	---	---	---	---	---
	For the nine-month period ended
	September 30, 2022			September 30, 2021
Beginning balance	~~W~~	483,001			464,846
Current service cost		38,511			42,564
Interest cost		10,962			8,388
Remeasurement
- Demographic assumption		(5,672	)		—
- Financial assumption		(31,830	)		—
- Adjustment based on experience		(2,984	)		9,715
Benefit paid		(16,393	)		(25,226	)
Others		1,074			2,642
Ending balance	~~W~~	476,669			502,929
(3)	Changes in fair value of plan assets for the nine-month periods ended September 30, 2022 and 2021 are as<br>follows:
---	---
(In millions of won)
---	---	---	---	---	---	---
	For the nine-month period ended
	September 30, 2022			September 30, 2021
Beginning balance	~~W~~	476,099			457,425
Interest income		11,044			8,089
Remeasurement		(8,063	)		(235	)
Contribution		35,000			26,500
Benefit paid		(25,638	)		(30,837	)
Others		52			1,482
Ending balance	~~W~~	488,494			462,424

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2022 and 2021 (Unaudited)

16.	Defined Benefit Liabilities (Assets), Continued
(4)	Total cost of defined benefit plan, which is recognized in profit or loss for the nine-month periods ended<br>September 30, 2022 and 2021 are as follows:
---	---
(In millions of won)
---	---	---	---	---	---
	For the nine-month period ended
	September 30, 2022			September 30, 2021
Current service cost	~~W~~	38,511			42,564
Net interest cost		(82	)		299
	~~W~~	38,429			42,863
17.	Share Capital and Capital Surplus and Others
---	---
(1)	The Company’s outstanding share capital consists entirely of common shares with a par value of<br>~~W~~100. The number of authorized, issued and outstanding common shares and the details of capital surplus and others as of September 30, 2022 and December 31, 2021 are as follows:
---	---
(In millions of won, except for share data)
---	---	---	---	---	---	---
	September 30, 2022			December 31, 2021
Number of authorized shares		670,000,000			670,000,000
Number of issued shares(*1)		218,833,144			218,833,144
Share capital:
Common share(*2)	~~W~~	30,493			30,493
Capital surplus and others:
Paid-in surplus		1,771,000			1,771,000
Treasury shares		(36,702	)		(57,314	)
Hybrid bonds(*3)		398,759			398,759
Share option(Note 18)		3,413			47,166
Others		(6,639,964	)		(6,735,882	)
	~~W~~	(4,503,494	)		(4,576,271	)
(*1)	As a result of stock split and the spin-off for the year ended<br>December 31, 2021, the number of shares that the Company is allowed to issue under its article of incorporation has changed from 220,000,000 shares with a par value of ~~W~~500 to 670,000,000 shares with a par value of<br>~~W~~100.
---	---
(*2)	The Company’s share capital decreased by ~~W~~14,146 million as a result of the spin-off for the year ended December 31, 2021. In addition, the Company retired 8,685,568 treasury shares with reduction of its retained earnings before appropriation, as a result, the Company’s issued<br>shares have decreased without change in share capital for the year ended December 31, 2021. Meanwhile, in 2002 and 2003, the Company retired treasury shares with reduction of its retained earnings before appropriation. As a result, the<br>Company’s issued shares have decreased without change in share capital.
---	---
(*3)	As there is no contractual obligation to deliver financial assets to the holders of hybrid bonds, the Company<br>classified the hybrid bonds as equity. When in liquidation or bankruptcy, these hybrid bonds are senior only to common shares.
---	---

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2022 and 2021 (Unaudited)

17.	Share Capital and Capital Surplus and Others, Continued
(2)	There were no changes in share capital for the nine-month periods ended September 30, 2022 and 2021, and<br>details of shares outstanding as of September 30, 2022 and 2021 are as follows:
---	---
(In shares)
---	---	---	---	---	---	---	---	---	---	---	---	---
	September 30, 2022						September 30, 2021
	Issued shares		Treasuryshares		Outstandingshares		Issuedshares		Treasuryshares		Outstandingshares
Shares outstanding		218,833,144		801,091		218,032,053		72,060,143		899,500		71,160,643
(3)	Treasury shares as of September 30, 2022 and December 31, 2021 are as follows:
---	---
(In millions of won, except for share data)
---	---	---	---	---
	September 30, 2022		December 31, 2021
Number of shares(*)		801,091		1,250,992
Acquisition cost	~~W~~	36,702		57,314
(*)	The Company distributed 449,901 treasury shares (acquisition cost: ~~W~~20,612 million) as bonus<br>payment to the employee, resulting in gain and loss on disposal of treasury shares of ~~W~~4,460 million and ~~W~~1,065 million, respectively, for the nine-month period ended September 30, 2022.<br>
---	---

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2022 and 2021 (Unaudited)

18.	Share-based Payment
(1)	The terms and conditions related to the grants of the share-based payment arrangement are as follows:<br>
---	---
1)	Equity-settled share-based payment arrangement
---	---
	Series
---	---	---	---	---	---	---	---
	1-2	1-3	2	3	4	*5(2)**	*6(2)**
Grant date	March 24, 2017		February 20,<br>2018	February 22,<br>2019	March 26,<br> <br>2019	March 26,<br> <br>2020	March 25,<br> <br>2021
Types of shares to be issued	Registered common shares
Grant method	Reissue of treasury shares,<br> <br>Cash settlement
Number of shares(*1) (in share)	67,320	67,320	4,124	8,907	5,266	376,313	87,794
Exercise price(*1) (in won)	53,298	57,562	50,824	53,052	50,862	38,452	50,276
Exercise period	Mar. 25, 2020	Mar. 25, 2021	Feb. 21, 2020	Feb. 23, 2021	Mar. 27, 2021	Mar. 27, 2023	Mar. 26, 2023
	~	~	~	~	~	~	~
	Mar. 24, 2023	Mar. 24, 2024	Feb. 20, 2023	Feb. 22, 2024	Mar. 26, 2024	Mar. 26, 2027	Mar. 25, 2026
Vesting conditions	3 years’<br>service from<br>the grant date	4 years’<br> <br>service from<br>the grant date	2 years’<br> <br>service from<br>the grant date	2 years’<br> <br>service from<br>the grant date	2 years’<br> <br>service from<br>the grant date	3 years’<br> <br>service from<br><br><br>the grant date	2 years’<br> <br>service from<br><br><br>the grant date
	Series
---	---	---
	7-1	*7-2(2)**
Grant date	March 25, 2022
Types of shares to be issued	Registered common shares
Grant method	Reissue of treasury shares,<br> <br>Cash settlement
Number of shares (in share)	295,275	109,704
Exercise price (in won)	56,860	56,860
Exercise period	Mar. 26, 2025	Mar. 26, 2024
	~	~
	Mar. 25, 2029	Mar. 25, 2027
Vesting conditions	3 years’<br> <br>service from<br><br><br>the grant date	2 years’<br> <br>service from<br><br><br>the grant date

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2022 and 2021 (Unaudited)

18.	Share-based Payment, Continued
(1)	The terms and conditions related to the grants of the share-based payment arrangement are as<br>follows, Continued:
---	---
2)	Cash-settled share-based payment arrangement
---	---
	2021		2022
---	---	---	---
	Share appreciation rights of<br>*SK Telecom Co., Ltd.(3)**	Share appreciation rights of<br>*SK Square Co., Ltd.(3)**	Share appreciation rights of<br>*SK Telecom Co., Ltd.(3)**
Grant date	January 1, 2021		January 1, 2022
Grant method	Cash settlement
Number of shares(*1) (in share)	183,246	118,456	338,525
Exercise price(*1) (in won)	50,276		56,860
Exercise period	Jan. 1, 2023 ~ Mar. 28, 2024		Jan. 1, 2024 ~ Mar. 25, 2025
Vesting conditions	2 years’ service from the grant date		2 years’ service from the grant date
(*1)	Number of shares granted and exercise price are adjusted as a result of stock split and the spin-off for the year ended December 31, 2021, and the remaining part of 1-1st share option and 3rd share option were fully and partially exercised for the nine-month<br>period ended September 30, 2022, respectively.
---	---
(*2)	Parts of the grant that have not met the vesting conditions have been forfeited for the nine-month period ended<br>September 30, 2022 and for the year ended December 31, 2021.
---	---
(*3)	The Company newly established the long-term incentive policy as part of the compensation related to the growth<br>of corporate value on the beginning of the prior year and granted cash settled share appreciation rights to executives. Meanwhile, parts of the grant that have not met the vesting conditions have been forfeited for the nine-month period ended<br>September 30, 2022.
---	---
(2)	Share compensation expense recognized for the nine-month period ended September 30, 2022 and the remaining<br>share compensation expense to be recognized in subsequent periods are as follows:
---	---
(In millions of won)
---	---	---
	Share compensation expense
As of December 31, 2021	~~W~~	76,979
For the nine-month period ended September 30, 2022		77,576
In subsequent periods		3,967
	~~W~~	158,522

As of September 30, 2022, the carrying amount of liabilities recognized by the Company in relation to the cash-settled share-based payment arrangement is ~~W~~1,374 million.

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2022 and 2021 (Unaudited)

18.	Share-based Payment, Continued
(3)	The Company used binomial option-pricing model in the measurement of the fair value of share options at the<br>grant date, and the inputs used in the model are as follows:
---	---
1)	Equity-settled share-based payment arrangement
---	---
(In won)	Series
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	1-2			1-3			2			3			4			5			6
Risk-free interest rate		1.95	%		2.07	%		2.63	%		1.91	%		1.78	%		1.52	%		1.55	%
Estimated option’s life		6 years			7 years			5 years			5 years			5 years			7 years			5 years
Share price<br>(Closing price on the preceding day)(*)		52,500			52,500			48,700			51,800			50,600			34,900			49,800
Expected volatility		13.38	%		13.38	%		16.45	%		8.30	%		7.70	%		8.10	%		25.70	%
Expected dividends		3.80	%		3.80	%		3.70	%		3.80	%		3.90	%		5.70	%		4.00	%
Exercise price(*)		53,298			57,562			50,824			53,052			50,862			38,452			50,276
Per-share fair value of the option(*)		4,048			3,096			4,798			1,720			1,622			192			8,142
(In won)	Series
---	---	---	---	---	---	---
	7-1			7-2
Risk-free interest rate		2.80	%		2.68	%
Estimated option’s life		7 years			5 years
Share price<br>(Closing price on the preceding day)		57,300			57,300
Expected volatility		24.20	%		24.20	%
Expected dividends		3.40	%		3.40	%
Exercise price		56,860			56,860
Per-share fair value of the option		11,772			10,435
2)	Cash-settled share-based payment arrangement
---	---
(In won)	2021						2022
---	---	---	---	---	---	---	---	---	---
	Share appreciation rights of<br>SK Telecom Co., Ltd.			Share appreciation rights of<br>SK Square Co., Ltd.			Share appreciation rights of<br>SK Telecom Co., Ltd.
Risk-free interest rate		3.87	%		3.87	%		4.17	%
Estimated option’s life		3.25 years			3.25 years			3.25 years
Share price on the remeasurement date		50,800			36,150			50,800
Expected volatility		23.60	%		23.60	%		23.60	%
Expected dividends		6.40	%		0.00	%		6.40	%
Exercise price(*)		50,276			50,276			56,860
Per-share fair value of the option		4,669			1,081			3,614
(*)	Share price (closing price on the preceding day), exercise price and<br>per-share fair value of the option are adjusted as a result of stock split and spin-off for the year ended December 31, 2021.
---	---

Meanwhile, the Board of Directors of the Company resolved to dispose its treasury shares for the purpose of allotment of shares as bonus payment on October 12, 2021. The transaction is equity-settled share-based payment transactions in accordance with KIFRS 1102, and 505,350 shares (before stock split) were granted on October 12, 2021(grant date). 7,700 shares (before stock split) out of 505,350 shares (before stock split) were transferred to the spin-off company on November 1, 2021. Vesting conditions are six months from the grant date and per-share fair value on the grant date are measured at ~~W~~300,500 that is closing price of common shares on the grant date before stock split and spin-off. The fair value of these share-based payment on the grant date is ~~W~~151,858 million, among which the awards with a fair value of ~~W~~9,935 million were transferred to the spin-off company.

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2022 and 2021 (Unaudited)

19.	Retained Earnings
Retained	earnings as of September 30, 2022 and December 31, 2021 are as follows:
---	---
(In millions of won)
---	---	---	---	---	---
	September 30, 2022		December 31, 2021
Appropriated:
Legal reserve	~~W~~	22,320		22,320
Reserve for business expansion		9,631,138		11,631,138
Reserve for technology development		4,365,300		4,365,300
		13,996,438		15,996,438
Unappropriated		820,857		(1,248,140	)
	~~W~~	14,839,615		14,770,618
20.	Reserves
---	---
(1)	Details of reserves, net of taxes, as of September 30, 2022 and December 31, 2021 are as follows:<br>
---	---
(In millions of won)
---	---	---	---	---
	September 30, 2022		December 31, 2021
Valuation gain on FVOCI	~~W~~	126,896		613,010
Valuation gain on derivatives		22,260		25,006
	~~W~~	149,156		638,016
(2)	Changes in reserves for the nine-month periods ended September 30, 2022 and 2021 as follows:<br>
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---	---
	Valuation gain(loss) onfinancial assets at FVOCI			Valuation gain(loss)on derivatives			Total
Balance at January 1, 2021	~~W~~	323,246			8,199			331,445
Changes, net of taxes		321,438			14,118			335,556
Balance at September 30, 2021		644,684			22,317			667,001
Balance at January 1, 2022		613,010			25,006			638,016
Changes, net of taxes		(486,114	)		(2,746	)		(488,860	)
Balance at September 30, 2022	~~W~~	126,896			22,260			149,156

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2022 and 2021 (Unaudited)

21.	Operating Revenue

Disaggregation of operating revenues considering the economic factors that affect the amounts, timing and uncertainty of the Company’s revenue and future cash flows is as follows:

(In millions of won)	2022				2021
	Three-monthperiod endedSeptember 30		Nine-monthperiod endedSeptember 30		Three-monthperiod ended<br>September 30		Nine-monthperiod endedSeptember 30
Products transferred at a point in time:
Product sales	~~W~~	27,956		78,779		10,782		42,577
Services transferred over time:
Wireless service revenue(*1)		2,625,549		7,828,582		2,574,999		7,667,436
Cellular interconnection revenue		125,061		386,766		125,683		379,398
Other(*2)		344,072		1,024,136		315,939		940,315
		3,094,682		9,239,484		3,016,621		8,987,149
	~~W~~	3,122,638		9,318,263		3,027,403		9,029,726
(*1)	Wireless service revenue includes revenue from wireless voice and data transmission services principally<br>derived through usage charges collected from the wireless subscribers.
---	---
(*2)	Other revenue includes revenue from billing and collection services as well as other miscellaneous services.<br>
---	---

The Company has a right to consideration from a customer in an amount that corresponds directly with the value to the subscriber of the Company’s performance completed; thus, as a practical expedient, the Company recognizes revenue in the amount to which the Company has a right to invoice.

Most of the Company’s transactions are occurring in Korea as it principally operates its businesses in Korea.

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2022 and 2021 (Unaudited)

22.	Other Operating Expenses

Details of other operating expenses for the three and nine-month periods ended September 30, 2022 and 2021 are as follows:

(In millions of won)	2022				2021
	Three-monthperiod endedSeptember 30		Nine-monthperiod endedSeptember 30		Three-monthperiod ended<br>September 30		Nine-monthperiod endedSeptember 30
Communication	~~W~~	6,766		20,429		6,939		21,086
Utilities		82,348		221,694		73,746		198,003
Taxes and dues		6,495		32,144		1,201		20,152
Repair		67,155		184,434		62,735		172,764
Research and development		84,631		251,373		80,448		246,591
Training		8,295		18,220		5,353		14,934
Bad debt for accounts receivable – trade		4,868		14,387		2,893		6,994
Others		10,471		31,223		7,944		19,601
	~~W~~	271,029		773,904		241,259		700,125

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2022 and 2021 (Unaudited)

23.	Other Non-Operating Income and Expenses

Details of other non-operating income and expenses for the three and nine-month periods ended September 30, 2022 and 2021 are as follows:

(In millions of won)	2022					2021
	Three-monthperiod endedSeptember 30			Nine-monthperiod endedSeptember 30		Three-monthperiod ended<br>September 30		Nine-monthperiod endedSeptember 30
Other non-operating Income:
Gain on disposal of property and equipment and intangible assets	~~W~~	2,728			9,900		8,289		11,784
Others		4,096			16,226		3,134		30,898
	~~W~~	6,824			26,126		11,423		42,682
Other non-operating Expenses:
Loss on disposal of property and equipment and intangible assets	~~W~~	1,872			4,840		7,773		11,460
Donations		758			10,135		797		9,829
Bad debt for accounts receivable – other		431			1,543		857		1,680
Others		(35	)		6,403		630		3,096
	~~W~~	3,026			22,921		10,057		26,065

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2022 and 2021 (Unaudited)

24.	Finance Income and Costs
(1)	Details of finance income and costs for the three and nine-month periods ended September 30, 2022 and 2021<br>are as follows:
---	---
(In millions of won)	2022				2021
---	---	---	---	---	---	---	---	---
	Three-monthperiod endedSeptember 30		Nine-monthperiod endedSeptember 30		Three-monthperiod ended<br>September 30		Nine-monthperiod endedSeptember 30
Finance Income:
Interest income	~~W~~	7,716		20,776		6,287		19,615
Gain on sale of accounts receivable – other		—		1,043		7,528		21,794
Dividends		—		49,637		303		195,618
Gain on foreign currency transactions		3,699		6,337		936		2,002
Gain on foreign currency translations		199		924		301		426
Gain relating to financial instruments at FVTPL		17,106		18,401		5,370		40,988
	~~W~~	28,720		97,118		20,725		280,443
Finance Costs:
Interest expense	~~W~~	65,772		194,864		60,456		177,309
Loss on sale of accounts receivable – other		15,206		23,212		—		—
Loss on foreign currency transactions		4,036		6,284		731		3,278
Loss on foreign currency translations		428		488		225		344
Loss relating to financial instruments at FVTPL		4		164		7,936		96,882
	~~W~~	85,446		225,012		69,348		277,813
(2)	Details of interest income included in finance income for the three and nine-month periods ended<br>September 30, 2022 and 2021 are as follows:
---	---
(In millions of won)	2022				2021
---	---	---	---	---	---	---	---	---
	Three-monthperiod endedSeptember 30		Nine-monthperiod endedSeptember 30		Three-monthperiod ended<br>September 30		Nine-monthperiod endedSeptember 30
Interest income on cash equivalents and financial instruments	~~W~~	3,897		7,573		1,462		3,490
Interest income on loans and others		3,819		13,203		4,825		16,125
	~~W~~	7,716		20,776		6,287		19,615
(3)	Details of interest expenses included in finance costs income for the three and nine-month periods ended<br>September 30, 2022 and 2021 are as follows:
---	---
(In millions of won)	2022				2021
---	---	---	---	---	---	---	---	---
	Three-monthperiod endedSeptember 30		Nine-monthperiod endedSeptember 30		Three-monthperiod ended<br>September 30		Nine-monthperiod endedSeptember 30
Interest expense on borrowings	~~W~~	5,630		14,293		2,190		4,742
Interest expense on debentures		47,396		136,347		46,727		140,542
Others		12,746		44,224		11,539		32,025
	~~W~~	65,772		194,864		60,456		177,309

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2022 and 2021 (Unaudited)

24.	Finance Income and Costs, Continued
(4)	Details of impairment losses for financial assets for the three and nine-month periods ended September 30,<br>2022 and 2021 are as follows:
---	---
(In millions of won)	2022				2021
---	---	---	---	---	---	---	---	---
	Three-monthperiod endedSeptember 30		Nine-monthperiod endedSeptember 30		Three-monthperiod ended<br>September 30		Nine-monthperiod endedSeptember 30
Accounts receivable – trade	~~W~~	4,868		14,387		2,893		6,994
Other receivables		431		1,543		857		1,680
	~~W~~	5,299		15,930		3,750		8,674
25.	Income Tax Expense
---	---

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2022 and 2021 (Unaudited)

26.	Earnings per Share

The Company carried out stock split on October 28, 2021. Basic and diluted earnings per share for the three and nine-month period ended September 30, 2021 has been retroactively adjusted to reflect the effect of the stock split.

(1)	Basic earnings per share
1)	Basic earnings per share for the three and nine-month periods ended September 30, 2022 and 2021 are<br>calculated as follows:
---	---
(In millions of won, except for share data and basic earnings per share)
---	---	---	---	---	---	---	---	---	---	---	---	---
	2022						2021
	Three-monthperiod ended<br>September 30			Nine-monthperiod endedSeptember 30			Three-monthperiod ended<br>September 30			Nine-monthperiod endedSeptember 30
Profit for the period	~~W~~	305,143			781,623			158,393			808,417
Interest on hybrid bonds		(3,692	)		(11,075	)		(3,692	)		(11,075	)
Profit for the period on common shares		301,451			770,548			154,701			797,342
Weighted average number of common shares outstanding		218,032,053			217,981,832			355,803,215			355,810,945
Basic earnings per share (in won)	~~W~~	1,383			3,535			435			2,241
2)	The weighted average number of common shares outstanding for the three and nine-month periods ended<br>September 30, 2022 and 2021 are calculated as follows:
---	---
(In shares)				Weighted average number ofcommon shares
---	---	---	---	---	---	---	---	---	---
	Number of<br>common shares			Three-monthperiod ended<br>September 30			Nine-monthperiod endedSeptember 30
Issued shares as of January 1, 2022		218,833,144			218,833,144			218,833,144
Treasury shares as of January 1, 2022		(1,250,992	)		(1,250,992	)		(1,250,992	)
Disposal of treasury shares		449,901			449,901			399,680
		218,032,053			218,032,053			217,981,832
(In shares)				Weighted average number ofcommon shares
---	---	---	---	---	---	---	---	---	---
	Number of<br>common shares			Three-monthperiod ended<br>September 30			Nine-monthperiod endedSeptember 30
Issued shares as of January 1, 2021		403,728,555			403,728,555			403,728,555
Treasury shares as of January 1, 2021		(47,092,790	)		(47,092,790	)		(47,092,790	)
Acquisition of treasury shares		(1,440,000	)		(1,440,000	)		(1,357,580	)
Disposal of treasury shares		607,450			607,450			532,760
		355,803,215			355,803,215			355,810,945

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2022 and 2021 (Unaudited)

26.	Earnings per Share, Continued
(2)	Diluted earnings per share
---	---
1)	Diluted earnings per share for the three and nine-month periods ended September 30, 2022 and 2021 are<br>calculated as follows:
---	---
(In millions of won, except for share data and basic earnings per share)
---	---	---	---	---	---	---	---	---
	2022				2021
	Three-monthperiod ended<br>September 30		Nine-monthperiod endedSeptember 30		Three-monthperiod ended<br>September 30		Nine-monthperiod endedSeptember 30
Profit for the period on common shares	~~W~~	301,451		770,548		154,701		797,342
Adjusted weighted average number of common shares outstanding		218,134,276		218,105,923		356,104,385		356,061,820
Diluted earnings per share (in won)	~~W~~	1,382		3,533		434		2,239
2)	The adjusted weighted average number of common shares outstanding for the three and nine-month periods ended<br>September 30, 2022 and 2021 are calculated as follows:
---	---
(In shares)	2022
---	---	---	---	---
	Three-month periodended September 30		Nine-month periodended September 30
Outstanding shares as of January 1, 2022		217,582,152		217,582,152
Effect of treasury shares		449,901		399,680
Effect of share option		102,223		124,091
Adjusted weighted average number of common shares outstanding		218,134,276		218,105,923
(In shares)	2021
---	---	---	---	---	---	---
	Three-month periodended September 30			Nine-month periodended September 30
Outstanding shares as of January 1, 2021		356,635,765			356,635,765
Effect of treasury shares		(832,550	)		(824,820	)
Effect of share option		301,170			250,875
Adjusted weighted average number of common shares outstanding		356,104,385			356,061,820

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2022 and 2021 (Unaudited)

27.	Categories of Financial Instruments
(1)	Financial assets by category as of September 30, 2022 and December 31, 2021 are as follows:<br>
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---	---	---
	September 30, 2022
	Financialassets atFVTPL		Equityinstruments atFVOCI		Financial<br>assets atamortized cost		Derivativeshedginginstrument		Total
Cash and cash equivalents	~~W~~	139,099		—		85,456		—		224,555
Financial instruments		568,501		—		79,354		—		647,855
Long-term investment securities(*)		99,202		943,786		—		—		1,042,988
Accounts receivable – trade		—		—		1,556,149		—		1,556,149
Loans and other receivables		373,999		—		600,549		—		974,548
Derivative financial assets		32,286		—		—		440,033		472,319
	~~W~~	1,213,087		943,786		2,321,508		440,033		4,918,414
(*)	The Company designated ~~W~~943,786 million of equity instruments that are not held for<br>trading as financial assets at FVOCI.
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---	---	---
	December 31, 2021
	Financialassets atFVTPL		Equityinstruments atFVOCI		Financial<br>assets atamortized cost		Derivativeshedginginstrument		Total
Cash and cash equivalents	~~W~~	25,000		—		133,823		—		158,823
Financial instruments		290,000		—		89,354		—		379,354
Long-term investment securities(*)		93,138		1,383,223		—		—		1,476,361
Accounts receivable – trade		—		—		1,514,260		—		1,514,260
Loans and other receivables		459,959		—		569,262		—		1,029,221
Derivative financial assets		25,001		—		—		152,511		177,512
	~~W~~	893,098		1,383,223		2,306,699		152,511		4,735,531
(*)	The Company designated ~~W~~1,383,223 million of equity instruments that are not held for<br>trading as financial assets at FVOCI.
---	---

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2022 and 2021 (Unaudited)

27.	Categories of Financial Instruments, Continued
(2)	Financial liabilities by category as of September 30, 2022 and December 31, 2021 are as follows:<br>
---	---
(In millions of won)
---	---	---	---	---	---	---
	September 30, 2022
	Financial liabilities atFVTPL		Financial liabilities atamortized cost		Total
Derivative financial liabilities	~~W~~	321,025		—		321,025
Borrowings		—		650,000		650,000
Debentures		—		7,188,988		7,188,988
Lease liabilities(*)		—		1,364,220		1,364,220
Accounts payable – other and others		—		3,931,901		3,931,901
	~~W~~	321,025		13,135,109		13,456,134
(In millions of won)
---	---	---	---	---	---	---
	December 31, 2021
	Financial liabilities atFVTPL		Financial liabilities atamortized cost		Total
Derivative financial liabilities	~~W~~	321,025		—		321,025
Borrowings		—		306,728		306,728
Debentures		—		6,804,867		6,804,867
Lease liabilities(*)		—		1,362,095		1,362,095
Accounts payable – other and others		—		5,070,674		5,070,674
	~~W~~	321,025		13,544,364		13,865,389
(*)	Lease liabilities are not applicable on category of financial liabilities, but are classified as financial<br>liabilities measured at amortized cost on consideration of nature for measurement of liabilities.
---	---

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2022 and 2021 (Unaudited)

28.	Financial Risk Management
(1)	Financial risk management
---	---

The Company is exposed to market risk, credit risk and liquidity risk. Market risk is the risk related to the changes in market prices, such as foreign exchange rates and interest rates. The Company implements a risk management system to monitor and manage these specific risks.

The Company’s financial assets consist of cash and cash equivalents, financial instruments, investment securities, accounts receivable – trade and other receivables, etc. Financial liabilities consist of accounts payable – other, borrowings, debentures, lease liabilities and others.

1)	Market risk
(i)	Currency risk
---	---

The Company is exposed to currency risk mainly on exchange rate fluctuations on forecasted transactions and recognized assets and liabilities which are denominated in a currency other than the functional currency of the Company.

Monetary assets and liabilities denominated in foreign currencies as of September 30, 2022 are as follows:

(In millions of won, thousands of foreign currencies)
				Liabilities
		Won equivalent		Foreign currencies		Won equivalent
	17,861	~~W~~	25,627		1,200,191	~~W~~	1,722,035
	183		258		12		17
Others	—		208		—		1,199
		~~W~~	26,093			~~W~~	1,723,251

All values are in US Dollars.

In addition, the Company has entered into currency swaps to hedge against currency risk related to foreign currency debentures.

As of September 30, 2022, a hypothetical change in exchange rates by 10% would have increased (decreased) the Company’s profit before income tax as follows:

(In millions of won)
			If decreased by 10%
	1,920			(1,920	)
	24			(24	)
Others	(99	)		99
	1,845			(1,845	)

All values are in Euros.

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2022 and 2021 (Unaudited)

28.	Financial Risk Management, Continued
(1)	Financial risk management, Continued
---	---
1)	Market risk, Continued
---	---

(ii) Interest rate risk

The interest rate risk of the Company arises from borrowings, debentures and long-term payables – other. Since the Company’s interest-bearing assets are mostly fixed-interest bearing assets, the Company’s revenue and operating cash flows from the interest-bearing assets are not influenced by the changes in market interest rates.

The Company performs various analysis to reduce interest rate risk and to optimize its financing. To minimize risks arising from changes in interest rates, the Company takes various measures, such as refinancing, renewal, alternative financing and hedging.

As of September 30, 2022, floating-rate debentures amount to ~~W~~430,440 million, and the Company has entered into interest rate swaps to hedge interest rate risk related to the floating-rate debentures. Therefore, profit before income taxes for the nine-month period ended September 30, 2022 would not have been affected by the changes in interest rates of floating-rate debentures.

Interest rate benchmark reform and associated risks

The Company plans to include fallback clauses into financial instruments relating to LIBOR to which calculation has not been suspended yet or change their LIBOR directly to alternative interest rates before the calculation is suspended.

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2022 and 2021 (Unaudited)

28.	Financial Risk Management, Continued
(1)	Financial risk management, Continued
---	---
1)	Market risk, Continued
---	---

(ii) Interest rate risk, Continued

The Company’s financial instruments exposed to the risk arising from interest rate benchmark reform as of September 30, 2022 are indexed to the USD LIBOR. The Company is exposed to legal risk to amend the terms of contracts on the financial instruments subject to interest rate benchmark reform as well as process and operation risks to manage such amendments. In addition, the Company is exposed to the risk of monitoring the market trend regarding the alternative interest rate and establishing the corresponding risk management strategy. If the IBOR is designated as the hedged item, the Company is required to replace it to an alternative benchmark interest and review the effects on the hedging relationship. In addition, the Company is exposed to the risk of minimizing hedge ineffectiveness by aligning the method and timing of the transition to the alternative benchmark interest applied to the hedged item and the hedging instrument.

In order to manage and monitor such risk factors, the Company evaluates the extent to which contracts refer to IBOR cash flows, whether such contracts will need to be amended as a result of IBOR reform and how to manage communication about IBOR reform with counterparties.

Non-derivative financial liabilities

The Company’s non-derivative financial liabilities subject to interest rate benchmark reform as of December 31, 2021 were floating-rate bonds indexed to USD LIBOR. As explained above, the Company is discussing with the counterparty about including the fallback clauses as of September 30, 2022.

Derivatives

The Company’s derivative instruments designated as cash flow hedge are governed by contracts based on the International Swaps and Derivatives Association (ISDA)’s master agreements. As part of interest rate benchmark reform, ISDA has included a new fallback clause regarding which alterative benchmark interest rate to be applied when the calculation of major IBOR is suspended in the master agreement. The master agreement is applied to derivative contracts after January 25, 2021, and the transaction parties is required to adhere to ISDA protocol to include the same fallback clause to derivative contracts before January 25, 2021. The Company has adhered to ISDA protocol for transition to the alternative benchmark interest rate, and the fallback clause will be included when counterparties adhere to the protocol to include. The Company’s counterparties have adhered to ISDA protocol and agreed to include the fallback clause.

Hedge accounting

The Company’s hedged items and hedging instruments as of September 30, 2022 are indexed to USD LIBOR. These benchmark rates are quoted each day, and the IBOR cash flows are exchanged with counterparties as usual.

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2022 and 2021 (Unaudited)

28.	Financial Risk Management, Continued
(1)	Financial risk management, Continued
---	---
2)	Credit risk
---	---

The maximum credit exposure as of September 30, 2022 and December 31, 2021 are as follows:

(In millions of won)
	September 30, 2022		December 31, 2021
Cash and cash equivalents	~~W~~	224,504		158,791
Financial instruments		647,855		379,354
Investment securities		900		900
Accounts receivable – trade		1,556,149		1,514,260
Contract assets		32,528		29,477
Loans and other receivables		974,548		1,029,221
Derivative financial assets		472,319		177,512
	~~W~~	3,908,803		3,289,515

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations. To manage credit risk, the Company evaluates the credit worthiness of each customer or counterparty considering the party’s financial information, its own trading records and other factors. Based on such information, the Company establishes credit limits for each customer or counterparty.

The Company establishes a loss allowance in respect of accounts receivable – trade. The main components of this allowance are a specific loss component that relates to individually significant exposures and a collective loss component established for groups of similar assets in respect of losses that are expected to occur. The collective loss allowance is determined based on historical data of collection statistics for similar financial assets. Also, the Company’s credit risk can arise from transactions with financial institutions related to its cash and cash equivalents, financial instruments and derivatives. To minimize such risk, the Company has a policy to deal only with financial institutions with high credit ratings.

The Company’s maximum exposure to credit risk is equal to each financial asset’s carrying amount as of September 30, 2022.

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2022 and 2021 (Unaudited)

28.	Financial Risk Management, Continued
(1)	Financial risk management, Continued
---	---
3)	Liquidity risk
---	---

The Company’s approach to managing liquidity is to ensure that it will always maintain sufficient cash and cash equivalents balances and have enough liquidity through various committed credit lines. The Company maintains enough liquidity within credit lines through active operating activities.

Contractual maturities of financial liabilities as of September 30, 2022 are as follows:

(In millions of won)
	Carryingamount		Contractualcash flows		Less than<br>1 year		1 – 5<br>years		More than<br>5 years
Borrowings(*)	~~W~~	650,000		678,008		14,249		663,759		—
Debentures(*)		7,188,988		8,253,226		1,892,368		4,036,444		2,324,414
Lease liabilities		1,364,220		1,459,496		337,791		928,576		193,129
Accounts payable – other and others(*)		3,931,901		4,074,274		2,717,782		1,263,487		93,005
	~~W~~	13,135,109		14,465,004		4,962,190		6,892,266		2,610,548
(*)	Includes interest payables.
---	---

The Company does not expect that the cash flows included in the maturity analysis could occur significantly earlier or at different amounts.

As of September 30, 2022, periods in which cash flows from cash flow hedge derivatives are expected to occur are as follows:

(In millions of won)
	Carryingamount		Contractualcash flows		Less than<br>1 year		1 – 5<br>years		More than<br>5 years
Assets	~~W~~	440,033		481,805		224,699		257,106		—
(2)	Capital management
---	---

The Company manages its capital to ensure that it will be able to continue as a business while maximizing the return to shareholders through the optimization of its debt and equity structure. The overall strategy of the Company is the same as that for the year ended December 31, 2021.

The Company monitors its debt-equity ratio as a capital management indicator. This ratio is calculated as total liabilities divided by total equity from the separate financial statements.

Debt-equity ratio as of September 30, 2022 and December 31, 2021 are as follows:

(In millions of won)
	September 30, 2022			December 31, 2021
Total liabilities	~~W~~	15,085,351			15,526,209
Total equity		10,515,770			10,862,856
Debt-equity ratios		143.45	%		142.93	%

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2022 and 2021 (Unaudited)

28.	Financial Risk Management, Continued
(3)	Fair value
---	---
1)	Fair value and carrying amount of financial assets and liabilities including fair value hierarchy as of<br>September 30, 2022 and December 31, 2021 are as follows:
---	---
(In millions of won)	September 30, 2022
---	---	---	---	---	---	---	---	---	---	---
	Carryingamount		Level 1		Level 2		Level 3		Total
Financial assets that are measured at fair value:
FVTPL	~~W~~	1,213,087		—		1,081,600		131,487		1,213,087
Derivative hedging instruments		440,033		—		440,033		—		440,033
FVOCI		943,786		872,396		—		71,390		943,786
	~~W~~	2,596,906		872,396		1,521,633		202,877		2,596,906
Financial liabilities that are measured at fair value:
Derivative financial liabilities	~~W~~	321,025		—		—		321,025		321,025
Financial liabilities that are not measured at fair value:
Borrowings	~~W~~	650,000		—		621,136		—		621,136
Debentures		7,188,988		—		6,675,256		—		6,675,256
Long-term payables – other		1,631,405		—		1,596,468		—		1,596,468
	~~W~~	9,470,393		—		8,892,860		—		8,892,860
(In millions of won)	December 31, 2021
---	---	---	---	---	---	---	---	---	---	---
	Carryingamount		Level 1		Level 2		Level 3		Total
Financial assets that are measured at fair value:
FVTPL	~~W~~	893,098		—		774,960		118,138		893,098
Derivative hedging instruments		152,511		—		152,511		—		152,511
FVOCI		1,383,223		1,340,791		—		42,432		1,383,223
	~~W~~	2,428,832		1,340,791		927,471		160,570		2,428,832
Financial liabilities that are measured at fair value:
Derivative financial liabilities	~~W~~	321,025		—		—		321,025		321,025
Financial liabilities that are not measured at fair value:
Borrowings	~~W~~	306,728		—		301,232		—		301,232
Debentures		6,804,867		—		7,058,585		—		7,058,585
Long-term payables – other		2,009,833		—		2,010,852		—		2,010,852
	~~W~~	9,121,428		—		9,370,669		—		9,370,669

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2022 and 2021 (Unaudited)

28.	Financial Risk Management, Continued
(3)	Fair value, Continued
---	---
1)	Fair value and carrying amount of financial assets and liabilities including fair value hierarchy as of<br>September 30, 2022 and December 31, 2021 are as follows, Continued:
---	---

The above information does not include fair values of financial assets and liabilities of which fair values have not been measured as carrying amounts are reasonable approximation of fair values.

Fair value of the financial instruments that are traded in an active market (financial assets at FVOCI) is measured based on the bid price at the end of the reporting date.

The Company uses various valuation methods for determination of fair value of financial instruments that are not traded in an active market. Derivative financial contracts and long-term liabilities are measured using the discounted present value methods. Other financial assets are determined using the methods, such as discounted cash flow and market approach. Inputs used to such valuation methods include swap rate, interest rate and risk premium, and the Company performs valuation using the inputs which are consistent with natures of assets and liabilities measured.

Interest rates used by the Company for the fair value measurement as of September 30, 2022 are as follows:

	Interest rate
Derivative instruments		0.32% ~ 5.47%
Borrowings and debentures		4.96% ~ 5.03%
Long-term payables – other		3.83% ~ 5.04%
2)	There have been no transfers between Level 2 and Level 1 for the nine-month period ended<br>September 30, 2022. The changes of financial assets and liabilities classified as Level 3 for the nine-month period ended September 30, 2022 are as follows:
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	Balance as of<br>January 1, 2022			Profit or loss		OCI		Acquisition		Disposal			Transfer			Balance as of<br>September 30, 2022
Financial assets:																		****
FVTPL	~~W~~	118,138			18,383		—		18,784		(23,818	)		—			131,487
FVOCI		42,432			—		356		30,140		(638	)		(900	)		71,390
	~~W~~	160,570			18,383		356		48,924		(24,456	)		(900	)		202,877
Financial liabilities:																		****
FVTPL	~~W~~	(321,025	)		—		—		—		—			—			(321,025	)

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2022 and 2021 (Unaudited)

28.	Financial Risk Management, Continued
(4)	Enforceable master netting agreement or similar agreement
---	---

Carrying amount of financial instruments recognized of which offset agreements are applicable as of September 30, 2022 and December 31, 2021 are as follows:

(In millions of won)
	September 30, 2022
	Gross financialinstruments recognized		Amount offset			Net financial instrumentspresented on the interimseparate statement offinancial position
Financial assets:
Accounts receivable – trade and others	~~W~~	82,119		(82,119	)		—
Financial liabilities:
Accounts payable – other and others	~~W~~	85,431		(82,119	)		3,312
(In millions of won)
	December 31, 2021
	Gross financialinstruments recognized		Amount offset			Net financial instrumentspresented on the separatestatement of financial position
Financial assets:
Accounts receivable – trade and others	~~W~~	86,838		(86,838	)		—
Financial liabilities:
Accounts payable – other and others	~~W~~	91,522		(86,838	)		4,684

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2022 and 2021 (Unaudited)

29.	Transactions with Related Parties
(1)	List of related parties
---	---
Relationship	Company
---	---
Ultimate Controlling Entity	SK Inc.
Subsidiaries	SK Broadband Co., Ltd. and 25 others(*)
Joint ventures	UTC Kakao-SK Telecom ESG Fund
Associates	SK China Company Ltd. and 44 others
Others	The Ultimate Controlling Entity’s subsidiaries and associates, etc.
(*)	As of September 30, 2022, subsidiaries of the Company are as follows:
---	---
Subsidiary		Ownership<br>*percentage(%)(1)**		Primary business
---	---	---	---	---
Subsidiaries owned by the Company	SK Telink Co., Ltd.		100.0	Telecommunication and Mobile Virtual Network<br><br><br>Operator service
	SK Communications Co., Ltd.		100.0	Internet website services
	SK Broadband Co., Ltd.		74.3	Telecommunication services
	PS&Marketing Corporation		100.0	Communications device retail business
	SERVICE ACE Co., Ltd.		100.0	Call center management service
	SERVICE TOP Co., Ltd.		100.0	Call center management service
	SK O&S Co., Ltd.		100.0	Base station maintenance service
	SK Telecom China Holdings Co., Ltd.		100.0	Investment (Holdings company)
	SK Global Healthcare Business Group., Ltd.		100.0	Investment
	YTK Investment Ltd.		100.0	Investment association
	Atlas Investment		100.0	Investment association
	SK Telecom Americas, Inc		100.0	Information gathering and consulting
	Quantum Innovation Fund I		59.9	Investment
	SK Telecom Japan Inc.		100.0	Information gathering and consulting
	Happy Hanool Co., Ltd.		100.0	Service
	SK stoa Co., Ltd.		100.0	Other telecommunication retail business
	Broadband Nowon Co., Ltd.		100.0	Cable broadcasting services
	SAPEON Inc.(*2)		62.5	Manufacturing non-memory and other electronic integrated circuits
Subsidiaries owned by SK Broadband Co., Ltd.	Home & Service Co., Ltd.		100.0	Operation of information and communication facility
	Media S Co., Ltd.		100.0	Production and supply services of broadcasting programs
Subsidiary owned by PS&Marketing Corporation	SK m&service Co., Ltd.(*3)		100.0	Database and internet website service
Subsidiary owned by Quantum Innovation Fund I	PanAsia Semiconductor Materials LLC.		66.4	Investment
Subsidiary owned by SK Telecom Japan Inc.	SK Planet Japan, K. K.		79.8	Digital Contents sourcing service
Subsidiary owned by SAPEON Inc.	SAPEON Korea Inc.(*4)		100.0	Manufacturing non-memory and other electronic integrated circuits
Others(*5)	SK Telecom Innovation Fund, L.P.		100.0	Investment
	SK Telecom China Fund I L.P.		100.0	Investment

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2022 and 2021 (Unaudited)

29.	Transactions with Related Parties, Continued
(1)	List of related parties, Continued:
---	---
(*1)	The ownership interest represents direct ownership interest in subsidiaries either by the Company or<br>subsidiaries of the Company.
---	---
(*2)	The Company newly established SAPEON Inc. for the nine-month period ended September 30, 2022.<br>
---	---
(*3)	PS&Marketing Corporation acquired shares (100%) of SK m&service Co., Ltd. for the nine-month period<br>ended September 30, 2022.
---	---
(*4)	The Company newly established SAPEON Korea Inc., and disposed the entire shares of SAPEON Korea Inc. to SAPEON<br>Inc. for the nine-month period ended September 30, 2022.
---	---
(*5)	Others are owned by Atlas Investment and another subsidiary of the Company.
---	---

As of September 30, 2022, the Company is included in SK Group, a conglomerate as defined in the Monopoly Regulation and Fair TradeAct. All of the other entities included in SK Group are considered related parties of the Company.

(2)	Compensation for the key management

The Company considers registered directors (3 executive and 5 non-executive directors) who have substantial role and responsibility in planning, operations and relevant controls of the business as key management. The compensation given to such key management for the three and nine-month periods ended September 30, 2022 and 2021 are as follows:

(In millions of won)
	2022				2021
	Three-monthperiod endedSeptember 30		Nine-month<br>period endedSeptember 30		Three-monthperiod endedSeptember 30		Nine-month<br>period endedSeptember 30
Salaries	~~W~~	569		2,918		990		5,422
Retirement benefits		208		613		210		2,234
Share compensation expense		508		1,089		40		112
	~~W~~	1,285		4,620		1,240		7,768

Compensation for the key management includes salaries, non-monetary salaries and retirement benefits made in relation to the pension plan and compensation expenses related to share options granted.

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2022 and 2021 (Unaudited)

29.	Transactions with Related Parties, Continued
(3)	Transactions with related parties for the three and nine-month periods ended September 30, 2022 and 2021<br>are as follows:
---	---
(In millions of won)	For the period ended September 30,2022
---	---	---	---	---	---	---	---	---	---	---	---	---	---
		Operating revenue<br>and others				Operating expenses<br>*and others (1)**				Acquisition ofproperty<br>and equipment andothers
Scope	Company	Three-month		Nine-<br>month		Three-month		Nine-<br>month		Three-month		Nine-<br>month
Ultimate Controlling Entity	SK Inc.(*2)	~~W~~	3,438		9,163		131,986		438,514		7,246		17,026
Subsidiaries	SK Broadband Co., Ltd.		32,821		90,957		143,789		425,066		1,304		2,206
	PS&Marketing Corporation(*3)		2,771		7,537		304,874		919,162		326		566
	SK O&S Co., Ltd.(*4)		725		5,293		73,220		189,607		13,899		30,297
	SK Telink Co., Ltd.(*5)		25,951		79,269		3,891		12,593		—		—
	SERVICE ACE Co., Ltd.(*6)		2,435		16,416		28,976		90,465		—		—
	SERVICE TOP Co., Ltd.(*7)		2,108		14,333		30,514		93,668		—		—
	SK Communications Co., Ltd.		340		1,014		1,089		2,608		142		1,175
	Broadband Nowon Co., Ltd.(*8)		—		13,725		—		—		—		—
	Others		1,056		2,952		5,656		16,265		82		331
			68,207		231,496		592,009		1,749,434		15,753		34,575
Associates	F&U Credit information Co., Ltd.		193		574		10,599		32,032		157		157
	SK USA, Inc.		—		—		1,297		3,495		—		—
	HanaCard Co., Ltd.(*9)		—		2,629		—		1,133		—		22
	Daehan Kanggun BcN Co., Ltd.		2,500		7,406		—		—		—		—
	Others(*10)		—		12,411		170		170		—		—
			2,693		23,020		12,066		36,830		157		179
Others	SK Innovation Co., Ltd.		3,480		8,710		3,437		9,960		—		—
	SK Networks Co., Ltd.		289		922		2,807		9,151		—		—
	SK Networks Service Co., Ltd.		264		609		11,231		31,511		697		1,470
	SK Energy Co., Ltd.		475		1,548		12		197		—		—
	Content Wavve Corp.		1,712		2,136		23,186		67,917		175		175
	Happy Narae Co., Ltd.		33		103		2,468		7,456		12,300		50,711
	SK Shieldus Co., Ltd.		7,266		17,182		27,243		77,195		1,604		5,136
	Eleven Street Co., Ltd.		2,181		6,809		3,174		15,086		—		—
	SK Planet Co., Ltd.		2,144		5,748		20,800		60,993		3,015		4,891
	SK hynix Inc.		13,434		32,122		10		62		—		—
	T Map Mobility Co., Ltd.		3,551		10,259		1,174		3,723		548		548
	Dreamus Company		2,602		4,557		20,397		63,998		550		550
	One Store Co., Ltd.		4,216		12,224		1		1		—		—
	UbiNS Co., Ltd.		—		—		888		1,457		2,347		6,418
	Others		7,763		19,912		6,959		18,421		5,239		8,089
			49,410		122,841		123,787		367,128		26,475		77,988
	~~W~~	~~W~~	123,748		386,520		859,848		2,591,906		49,631		129,768

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2022 and 2021 (Unaudited)

29.	Transactions with Related Parties, Continued
(3)	Transactions with related parties for the three and nine-month periods ended September 30, 2022 and 2021<br>are as follows, Continued:
---	---
(*1)	Operating expenses and others include lease payments by the Company.
---	---
(*2)	Operating expenses and others include ~~W~~218,019 million of dividends paid by the Company.<br>
---	---
(*3)	Operating expenses and others include ~~W~~468,190 million paid to PS&Marketing<br>Corporation relating to purchase of accounts receivable resulting from sale of handsets.
---	---
(*4)	Operating revenue and others include ~~W~~3,000 million of dividend income received.<br>
---	---
(*5)	Operating revenue and others include ~~W~~3,009 million of dividend income received.<br>
---	---
(*6)	Operating revenue and others include ~~W~~8,003 million of dividend income received.<br>
---	---
(*7)	Operating revenue and others include ~~W~~8,000 million of dividend income received.<br>
---	---
(*8)	Operating revenue and others include ~~W~~13,721 million of dividend income received.<br>
---	---
(*9)	HanaCard Co., Ltd. was excluded from the related parties due to the disposal of shares for the nine-month<br>period ended September 30, 2022, and the transactions above occurred before the disposal.
---	---
(*10)	Operating revenue and others include ~~W~~12,410 million of dividend income received from<br>Korea IT Fund.
---	---

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2022 and 2021 (Unaudited)

29.	Transactions with Related Parties, Continued
(3)	Transactions with related parties for the three and nine-month periods ended September 30, 2022 and 2021<br>are as follows, Continued:
---	---
(In millions of won)		For the period ended September 30, 2021
---	---	---	---	---	---	---	---	---	---	---	---	---	---
		Operating revenue<br>and others				Operating expenses<br>*and others (1)**				Acquisition of property<br>and equipment andothers
Scope	Company	Three-month		Nine-<br>month		Three-month		Nine-<br>month		Three-month		Nine-<br>month
Ultimate Controlling Entity	SK Inc.(*2)	~~W~~	3,127		9,575		125,307		459,823		3,432		15,974
Subsidiaries	SK Broadband Co., Ltd.		25,511		73,742		134,598		405,567		2,065		2,835
	PS&Marketing Corporation(*3)		1,991		7,526		356,924		995,403		243		539
	SK O&S Co., Ltd.		856		2,626		57,211		169,658		11,708		22,472
	SK Planet Co., Ltd.		1,321		3,565		20,260		61,858		2,262		4,932
	SK Telink Co., Ltd.(*4)		18,994		55,951		13,941		33,311		—		—
	SERVICE ACE Co., Ltd.		2,429		7,845		31,050		93,740		—		—
	SERVICE TOP Co., Ltd.		2,053		6,330		31,932		100,084		—		—
	Eleven Street Co., Ltd.		1,292		3,116		5,133		11,984		—		—
	One Store Co., Ltd.		3,949		11,611		—		—		—		—
	SK Shieldus Co., Ltd. (Formerly, ADT CAPS<br><br><br>Co., Ltd.)(*5)		4,474		23,361		21,955		59,993		1,910		4,461
	Dreamus Company		641		2,094		24,088		71,644		—		—
	Others		3,598		8,885		9,265		25,569		1,371		2,125
			67,109		206,652		706,357		2,028,811		19,559		37,364
Associates	F&U Credit information Co., Ltd.		191		573		11,161		32,488		—		—
	SK hynix Inc.(*6)		8,372		195,009		19		72		—		—
	HanaCard Co., Ltd.		101		1,784		699		2,210		—		—
	SK Wyverns Co., Ltd.(*7)		—		199		—		8,203		—		—
	Content Wavve Corp.		2		42		18,245		51,914		—		—
	Others(*8)		9,473		34,781		1,360		5,222		—		—
			18,139		232,388		31,484		100,109		—		—
Others	SK Ecoplant Co., Ltd. (Formerly, SK Engineering<br><br><br>& Construction Co., Ltd.)		536		1,573		—		—		—		—
	SK Innovation Co., Ltd.		2,860		8,337		3,305		10,118		—		—
	SK Networks Co., Ltd.		344		1,172		3,073		7,354		—		24
	SK Networks Service Co., Ltd.		166		507		9,594		28,287		431		834
	SK Telesys Co., Ltd.		45		118		20		118		1,898		11,581
	SK TNS Co., Ltd.(*7)		—		52		—		5,856		—		38,169
	SK Energy Co., Ltd.		426		1,339		15		178		—		—
	SKC Infra Service Co., Ltd.(*7)		6		17		994		5,739		7		98
	SK ENS Co., Ltd.		482		1,399		—		—		—		—
	UbiNS Co., Ltd.		—		—		748		1,476		1,485		11,860
	Happy Narae Co., Ltd.		30		94		3,591		10,279		12,015		52,809
	Others		4,054		10,158		2,958		8,707		966		5,132
			8,949		24,766		24,298		78,112		16,802		120,507
		~~W~~	97,324		473,381		887,446		2,666,855		39,793		173,845

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2022 and 2021 (Unaudited)

29.	Transactions with Related Parties, Continued
(3)	Transactions with related parties for the three and nine-month periods ended September 30, 2022 and 2021<br>are as follows, Continued:
---	---
(*1)	Operating expenses and others include lease payments by the Company.
---	---
(*2)	Operating expenses and others include ~~W~~248,677 million of dividends paid by the Company.<br>
---	---
(*3)	Operating expenses and others include ~~W~~517,897 million paid to PS&Marketing<br>Corporation relating to purchase of accounts receivable resulting from sale of handsets.
---	---
(*4)	Operating revenue and others include ~~W~~3,009 million of dividend income received.<br>
---	---
(*5)	Operating revenue and others include ~~W~~9,637 million of dividend income received.<br>
---	---
(*6)	Operating revenue and others include ~~W~~170,937 million of dividend income received.<br>
---	---
(*7)	Transactions that occurred before the disposal.
---	---
(*8)	Operating revenue and others include ~~W~~10,716 million of dividend income received from<br>Korea IT Fund.
---	---

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2022 and 2021 (Unaudited)

29.	Transactions with Related Parties, Continued
(4)	Account balances with related parties as of September 30, 2022 and December 31, 2021 are as follows:<br>
---	---
(In millions of won)		September 30, 2022
---	---	---	---	---	---	---	---
		Receivables				Payables
Scope	Company	Loans		Accounts receivable –trade, etc.		Accounts payable –other, etc.
Ultimate Controlling Entity	SK Inc.	~~W~~	—		1,023		37,403
Subsidiaries	SK Broadband Co., Ltd.		—		7,006		227,336
	PS&Marketing Corporation		—		1,700		57,082
	SK O&S Co., Ltd.		—		45		28,544
	SK Telink Co., Ltd.		—		17,373		19,115
	SERVICE ACE Co., Ltd.		—		427		21,756
	SERVICE TOP Co., Ltd.		—		2		21,274
	SK Communications Co., Ltd.		—		3		8,206
	Others		—		1,484		20,161
			—		28,040		403,474
Associates	F&U Credit information Co., Ltd.		—		—		3,780
	Wave City Development Co., Ltd.(*1)		—		901		—
	Daehan Kanggun BcN Co., Ltd.(*2)		22,148		2,647		—
	SK USA, Inc.		—		—		2,870
			22,148		3,548		6,650
Others	SK hynix Inc.		—		11,931		105
	SK Planet Co., Ltd.		—		1,745		21,249
	Eleven Street Co., Ltd.		—		1,070		1,745
	One Store Co., Ltd.		—		505		13,729
	SK Shieldus Co., Ltd.		—		3,314		22,994
	SK Innovation Co., Ltd.		—		1,661		31,386
	SK Networks Co., Ltd.		—		230		43,124
	SK Networks Services Co., Ltd.		—		—		6,019
	SK RENT A CAR Co., Ltd.		—		16		10,251
	Incross Co., Ltd.		—		2,222		12,825
	UbiNS Co., Ltd.		—		—		716
	Mintit Co., Ltd.		—		42,257		—
	Happy Narae Co., Ltd.		—		—		866
	Content Wavve Corp.		—		948		—
	Dreamus Company		—		528		3,711
	Others		—		5,081		2,777
			—		71,508		171,497
		~~W~~	22,148		104,119		619,024
(*1)	As of September 30, 2022, the Company recognized loss allowance amounting to<br>~~W~~379 million on accounts receivable – trade.
---	---
(*2)	As of September 30, 2022, the Company recognized full loss allowance for the balance of loans to Daehan<br>Kanggun BcN Co., Ltd.
---	---

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2022 and 2021 (Unaudited)

29.	Transactions with Related Parties, Continued
(4)	Account balances with related parties as of September 30, 2022 and December 31, 2021 are as<br>follows, Continued:
---	---
(In millions of won)		December 31, 2021
---	---	---	---	---	---	---	---
		Receivables				Payables
Scope	Company	Loans		Accounts receivable –trade, etc.		Accounts payable –other, etc.
Ultimate Controlling Entity	SK Inc.	~~W~~	—		2,059		50,054
Subsidiaries	SK Broadband Co., Ltd.		—		7,374		273,875
	PS&Marketing Corporation		—		1,247		66,097
	SK O&S Co., Ltd.		—		59		52,609
	SK Telink Co., Ltd.		—		15,765		20,826
	SERVICE ACE Co., Ltd.		—		466		24,791
	SERVICE TOP Co., Ltd.		—		2		24,859
	SK Communications Co., Ltd.		—		28		12,113
	Others		—		39		2,324
			—		24,980		477,494
Associates	F&U Credit information Co., Ltd.		—		3		4,394
	Wave City Development Co., Ltd.(*1)		—		2,623		—
	Daehan Kanggun BcN Co., Ltd.(*2)		22,147		3,857		—
	HanaCard Co., Ltd.		—		433		42,110
	Others		—		71		1,104
			22,147		6,987		47,608
Others	SK hynix Inc.		—		11,526		166
	SK Planet Co., Ltd.		—		661		25,337
	Eleven Street Co., Ltd.		—		486		7,555
	One Store Co., Ltd.		—		8		13,325
	SK m&service Co., Ltd.		—		1,363		17,754
	SK Shieldus Co., Ltd.		—		1,068		16,172
	SK Innovation Co., Ltd.		—		3,020		37,136
	SK Networks Co., Ltd.		—		108		33,613
	SK Networks Services Co., Ltd.		—		—		7,374
	SK RENT A CAR Co., Ltd.		—		116		11,069
	Incross Co., Ltd.		—		1,687		10,904
	UbiNS Co., Ltd.		—		1		9,886
	Mintit Co., Ltd.		—		17,868		131
	Happy Narae Co., Ltd.		—		—		48,484
	Content Wavve Corp.		—		183		9,865
	Others		—		7,529		7,198
			—		45,624		255,969
		~~W~~	22,147		79,650		831,125
(*1)	As of December 31, 2021, the Company recognized loss allowance amounting to<br>~~W~~1,102 million on accounts receivable – trade.
---	---
(*2)	As of December 31, 2021, the Company recognized full loss allowance for the balance of loans to Daehan<br>Kanggun BcN Co., Ltd.
---	---

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2022 and 2021 (Unaudited)

29.	Transactions with Related Parties, Continued
(5)	The Company has granted SK REIT Co., Ltd. the right of first offer regarding the disposal of real estate owned<br>by the Company. Whereby, the negotiation period is within 3 to 5 years from June 30, 2021, date of agreement, and the Company has been granted the right by SK REIT Co., Ltd. to lease the real estate in preference to a third party if SK REIT<br>Co., Ltd. purchases the real estate from the Company.
---	---
(6)	There were additional investments and disposal transactions in subsidiaries, associates and joint ventures for<br>the nine-month period ended September 30, 2022 are as presented in note 8.
---	---
30.	Commitments and Contingencies
---	---
(1)	Accounts receivable from sale of handsets
---	---

The sales agents of the Company sell handsets to the Company’s subscribers on an installment basis. The Company entered into comprehensive agreements to purchase accounts receivable from handset sales with retail stores and authorized dealers and to transfer the accounts receivable from handset sales to special-purpose companies which were established with the purpose of liquidating receivables, respectively.

Accounts receivable from sales of handsets amounting to ~~W~~401,940 million and ~~W~~493,277 million as of September 30, 2022 and December 31, 2021, respectively, which the Company purchased according to the relevant comprehensive agreement, are recognized as accounts receivable – other and long-term accounts receivable – other.

(2)	Legal claims and litigations

As of September 30, 2022, the Company is involved in various legal claims and litigations. Provision recognized in relation to these claims and litigations is immaterial. In connection with those legal claims and litigations for which no provision was recognized, management does not believe the Company has a present obligation, nor is it expected that any of these claims or litigations will have a significant impact on the Company’s financial position or operating results in the event an outflow of resources is ultimately necessary.

(3)	Obligation relating to spin-off

The Company carried out the spin-off of its business of managing investments in semiconductor, New Information and Communication Technologies(“ICT”) and other businesses and making new investments on November 1, 2021. The Company has obligation to jointly and severally reimburse the Company’s liabilities incurred prior to the spin-off with SK Square Co., Ltd., the spin-off company, in accordance with Article 530-9 (1) of Korean Commercial Act.

(4)	Commitment of acquisition and disposal of certain shares

The Board of Directors of the Company resolved the acquisition and disposal of certain shares in order to strengthen the strategic alliance with Hana Financial Group Inc.(“HFG”) at the Board of Directors’ meeting on held July 22, 2022. In accordance with the resolution, as of July 27, 2022, the Company disposed of its entire common shares of HanaCard Co., Ltd. (39,902,323 shares) and entire common shares of Finnq Co., Ltd. (6,370,000 shares) to HFG for ~~W~~330,032 million and ~~W~~5,733 million, respectively. Through the agreement with HFG, the Company is obligated to acquire HFG’s common shares from July 27, 2022 to January 31, 2024, after depositing ~~W~~330,032 million in a specific money trust. For a part of the above transaction, as of July 27, 2022, the Company disposed of its entire common shares of SK Square Co., Ltd. (767,011 shares) to HanaCard Co., Ltd. for ~~W~~31,563 million as well, and HanaCard Co., Ltd. is obligated to acquire the Company’s common shares from July 27, 2022 to January 31, 2024, after depositing ~~W~~68,437 million in a specific money trust. The Company, HFG, and HanaCard Co., Ltd. may not dispose of shares they have acquired or will acquire under the above transaction until March 31, 2025.

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2022 and 2021 (Unaudited)

31.	Statements of Cash Flows
(1)	Adjustments for income and expenses from operating activities for the nine-month periods ended<br>September 30, 2022 and 2021 are as follows:
---	---
(In millions of won)
---	---	---	---	---	---	---
	For the nine-month period ended
	September 30, 2022			September 30, 2021
Gain on foreign currency translations	~~W~~	(924	)		(426	)
Interest income		(20,776	)		(19,615	)
Dividend income		(49,637	)		(195,618	)
Gain relating to investments in subsidiaries, associates and joint ventures		(97,863	)		(56,931	)
Gain relating to financial instruments at FVTPL		(18,401	)		(40,988	)
Gain on disposal of property and equipment and intangible assets		(9,900	)		(11,784	)
Gain on sale of accounts receivable – other		(1,043	)		(21,794	)
Other income		(4,715	)		(4,599	)
Loss on foreign currency translations		488			344
Bad debt expenses		14,387			6,994
Other Bad debt expenses		1,543			1,680
Loss relating to financial instruments at FVTPL		164			96,882
Depreciation and amortization		2,123,038			2,186,660
Loss on disposal of property and equipment and intangible assets		4,840			11,460
Loss on sale of accounts receivable – other		23,212			—
Interest expense		194,864			177,309
Expense related to defined benefit plan		38,429			42,863
Bonus paid by treasury shares		24,007			29,642
Share compensation expense		77,176			407
Income tax expense		318,067			222,975
Other expenses		15,388			1,383
	~~W~~	2,632,344			2,426,844

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2022 and 2021 (Unaudited)

31.	Statements of Cash Flows, Continued
(2)	Changes in assets and liabilities from operating activities for the nine-month periods ended September 30,<br>2022 and 2021 are as follows:
---	---
(In millions of won)
---	---	---	---	---	---	---
	For the nine-month period ended
	September 30, 2022			September 30, 2021
Accounts receivable – trade	~~W~~	(55,549	)		(73,198	)
Accounts receivable – other		(12,925	)		(97,399	)
Advanced payments		(6,452	)		(2,843	)
Prepaid expenses		(14,304	)		120,786
Inventories		(9,683	)		(12,405	)
Long-term accounts receivable – other		57,666			9,791
Long-term prepaid expenses		18,909			(36,605	)
Guarantee deposits		2,374			4,770
Contract assets		(3,050	)		190
Accounts payable – other		(165,477	)		(143,503	)
Withholdings		92,794			(29,174	)
Deposits received		(4,277	)		(3,738	)
Accrued expenses		20,866			5,231
Plan assets		(9,362	)		4,337
Retirement benefits payment		(16,393	)		(25,226	)
Contract liabilities		(4,319	)		(7,910	)
Others		(2,391	)		(4,335	)
	~~W~~	(111,573	)		(291,231	)
(3)	Significant non-cash transactions for the nine-month periods ended<br>September 30, 2022 and 2021 are as follows:
---	---
(In millions of won)
---	---	---	---	---	---	---
	For the nine-month period ended
	September 30, 2022			September 30, 2021
Decrease in accounts payable – other relating to the acquisition of property and equipment<br>and intangible assets	~~W~~	(605,983	)		(127,529	)
Increase of<br>right-of-use assets		291,538			367,499
Retirement of treasury shares		—			1,965,952
Transfer from property and equipment to investment property		16,788			—

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2022 and 2021 (Unaudited)

32.	Emissions Liabilities
(1)	The quantity of emissions rights allocated free of charge for each implementation year as of September 30,<br>2022 are as follows:
---	---
(In tCO2-eQ)
---	---	---	---	---	---	---	---	---
	Quantities<br>allocated in 2020		Quantities<br>allocated in 2021		Quantities<br>allocated in 2022		Total
Emissions rights allocated free of charge		814,842		1,033,764		1,033,764		2,882,370
(2)	Changes in emissions rights quantities the Company held are as follows:
---	---
(In tCO2-eQ)
---	---	---	---	---	---	---	---	---	---	---	---	---
	Quantities<br>allocated in 2020			Quantities<br>allocated in 2021			Quantities<br>allocated in the nine-month period ended<br>September 30, 2022			Total
Beginning		(60,977	)		—			(19,854	)		(80,831	)
Allocation at no cost		814,842			1,033,764			1,033,764			2,882,370
Additional allocation		217,643			—			—			217,643
Other changes		—			(2,238	)		(2,238	)		(4,476	)
Purchase		68,471			—			—			68,471
Surrendered or shall be surrendered		(1,039,979	)		(1,051,380	)		(1,140,316	)		(3,231,675	)
Borrowed		—			19,854			—			19,854
Ending		—			—			(128,644	)		(128,644	)
(3)	As of September 30, 2022, the estimated annual greenhouse gas emissions quantities of the Company are<br>1,140,316 tCO2-eQ.
---	---

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2022 and 2021 (Unaudited)

33.	Non-current Assets Held for Sale

On February 25, 2021, the Company has decided to dispose of the investments in an associate engaged in mobility business to T map Mobility Co., Ltd. pursuant to the approval of the Board of Directors and reclassified entire shares of the investments in associates as non-current assets held for sale. The disposal of the investments in associates was completed in 2022 after the Financial Services Commission approved the transaction.

(In millions of won)
		September 30, 2022
Investments in associates	Carrot General Insurance Co., Ltd.	~~W~~	20,000
34.	Subsequent Events
---	---

The Board of Directors of the Company resolved to pay interim dividends at the Board of Directors’ meeting held on October 27, 2022, and the details are as follows:

Classification	Description
Interim dividend amount	~~W~~830 per share (Total amount: ~~W~~180,967 million)
Dividend rate	1.59%
Record date	September 30, 2022
Date of distribution	Pursuant to Article 165 of Capital Market and Financial Investment Business Act 12-3, the Company shall distribute dividends no later than November 16, 2022.

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