6-K

UNITED STATES

SECURITIESAND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 6-K

REPORT OF FOREIGN PRIVATE ISSUER

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

UNDER THE SECURITIES EXCHANGE ACT OF 1934

FOR THE MONTH OF APRIL 2025

COMMISSION FILE NUMBER: 333-04906

SK Telecom Co., Ltd.

(Translation of registrant’s name into English)

65, Eulji-ro, Jung-gu

Seoul 04539, Korea

(Address of principal executive office)

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

Form 20-F ☒ Form 40-F ☐

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.

ANNUAL BUSINESS REPORT

(From January 1, 2024 to December 31, 2024)

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

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

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

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

I.	COMPANY OVERVIEW

1. Company Overview

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

	Number of Consolidated Subsidiaries
Classification	Beginning ofthe ReportingPeriod		Additions		Subtractions		End of theReportingPeriod		Number ofMaterialSubsidiaries*
Listed Companies		0		0		0		0		0
Unlisted Companies		25		1		5		21		13
Total		25		1		5		21		13
*	“Material Subsidiary” means a subsidiary with total assets of Won 75 billion or more as of the<br>end of the previous fiscal year.
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**	Global AI Platform Corporation, SK Telecom Americas, Inc. and Astra AI Infra LLC have been newly included in<br>the number of Material Subsidiaries, as the total assets of each of these subsidiaries exceeded Won 75 billion on a separate basis as of December 31, 2024.
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For a list of the Company’s subsidiaries as of December 31, 2024, see Note 1(2) of the notes to the Company’s audited consolidated financial statements attached hereto.

Changes in the Company’s consolidated subsidiaries during the year ended December 31, 2024 are set forth below.

Change	Name	Remarks
Additions	Astra AI Infra LLC	Newly established by parent company
Exclusions	SK Global Healthcare Business Group Ltd.	Liquidated during the reporting period
	Quantum Innovation Fund I	Liquidated during the reporting period
	PanAsia Semiconductor Materials LLC	Liquidated during the reporting period
	Rebellions, Inc. (formerly SAPEON Korea Inc.)	Lost control during the reporting period
	SK Telecom China Fund I L.P.	Liquidated during the reporting period
A.	Corporate Legal Business Name: SK Telecom Co., Ltd.
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B.	Date of Incorporation: March 29, 1984
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C.	Location of Headquarters
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(1)	Address: 65 Euljiro, Jung-gu, Seoul, Korea
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(2)	Phone: +82-2-6100-2114<br>
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(3)	Website: http://www.sktelecom.com
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D.	Major Businesses
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The Company’s businesses consist of (1) the wireless business including cellular voice, wireless data and wireless Internet services, (2) the fixed-line business including fixed-line telephone, high-speed Internet, and data and network lease services, and (3) other businesses including commercial retail data broadcasting channel services, among others.

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

Classification	Material entities	Description of business	Proportion of revenue
Wireless business	SK Telecom Co., Ltd.	Mobile telephone, wireless data, information and communications services, etc.	74%
	PS&Marketing Co., Ltd.
	(“PS&Marketing”)
	SK O&S Co., Ltd. (“SK O&S”)
Fixed-line business	SK Broadband Co., Ltd.	Telephone, high-speed Internet, data, communications network leasing services, etc.	23%
	(“SK Broadband”)
	SK Telink Co., Ltd.
	(“SK Telink”)
	Home & Service Co., Ltd.
	(“Home&Service”)
Other businesses	SK stoa Co., Ltd. (“SK Stoa”)	Operation of commercial retail data broadcasting channel services, etc.	3%
Total			100%

The total number of the Company’s consolidated subsidiaries as of December 31, 2024 was 21, including SK Broadband and PS&Marketing, among others.

E.	Credit Ratings
(1)	Corporate bonds and other long-term securities
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Credit rating date	Subject of rating	Credit rating	Credit rating entity(Credit rating range)	Rating classification
---	---	---	---	---
January 4, 2021	Corporate bond	AAA (Stable)	Korea Ratings	Current rating
January 4, 2021	Corporate bond	AAA (Stable)	Korea Investors Service, Inc.	Current rating
June 15, 2021	Corporate bond	AAA (Stable)	NICE Investors Service, Co., Ltd.	Regular rating
June 16, 2021	Corporate bond	AAA (Stable)	Korea Investors Service, Inc.	Regular rating
June 25, 2021	Corporate bond	AAA (Stable)	Korea Ratings	Regular rating
October 14, 2021	Corporate bond	AAA (Stable)	Korea Investors Service, Inc.	Current rating
October 15, 2021	Corporate bond	AAA (Stable)	NICE Investors Service, Co., Ltd.	Current rating
October 15, 2021	Corporate bond	AAA (Stable)	Korea Ratings	Current rating
March 30, 2022	Corporate bond	AAA (Stable)	Korea Ratings	Regular rating
March 30, 2022	Corporate bond	AAA (Stable)	Korea Ratings	Current rating
March 30, 2022	Corporate bond	AAA (Stable)	Korea Investors Service, Inc.	Current rating
March 30, 2022	Corporate bond	AAA (Stable)	NICE Investors Service, Co., Ltd.	Current rating
March 30, 2022	Corporate bond	AAA (Stable)	NICE Investors Service, Co., Ltd.	Regular rating
June 15, 2022	Corporate bond	AAA (Stable)	Korea Investors Service, Inc.	Regular rating
June 15, 2022	Corporate bond	AAA (Stable)	Korea Investors Service, Inc.	Regular rating
July 28, 2022	Corporate bond	AAA (Stable)	Korea Ratings	Current rating
July 28, 2022	Corporate bond	AAA (Stable)	Korea Investors Service, Inc.	Current rating
July 29, 2022	Corporate bond	AAA (Stable)	NICE Investors Service, Co., Ltd.	Current rating
December 1, 2022	Corporate bond	AAA (Stable)	Korea Investors Service, Inc.	Current rating
December 2, 2022	Corporate bond	AAA (Stable)	Korea Ratings	Current rating
December 2, 2022	Corporate bond	AAA (Stable)	NICE Investors Service, Co., Ltd.	Current rating
February 7, 2023	Corporate bond	AAA (Stable)	Korea Ratings	Current rating
February 7, 2023	Corporate bond	AAA (Stable)	Korea Investors Service, Inc.	Current rating
February 7, 2023	Corporate bond	AAA (Stable)	NICE Investors Service, Co., Ltd.	Current rating
March 30, 2023	Corporate bond	AAA (Stable)	Korea Investors Service, Inc.	Current rating
March 30, 2023	Corporate bond	AAA (Stable)	Korea Investors Service, Inc.	Regular rating
March 31, 2023	Corporate bond	AAA (Stable)	Korea Ratings	Regular rating
March 31, 2023	Corporate bond	AAA (Stable)	NICE Investors Service, Co., Ltd.	Regular rating
March 31, 2023	Corporate bond	AAA (Stable)	Korea Ratings	Current rating
March 31, 2023	Corporate bond	AAA (Stable)	NICE Investors Service, Co., Ltd.	Current rating
May 22, 2023	Hybrid securities	AA+ (Stable)	Korea Ratings	Current rating
May 22, 2023	Hybrid securities	AA+ (Stable)	Korea Investors Service, Inc.	Current rating
May 22, 2023	Hybrid securities	AA+ (Stable)	NICE Investors Service, Co., Ltd.	Current rating
May 22, 2023	Hybrid securities	AA+ (Stable)	Korea Ratings	Current rating
May 22, 2023	Hybrid securities	AA+ (Stable)	Korea Investors Service, Inc.	Current rating
May 22, 2023	Hybrid securities	AA+ (Stable)	NICE Investors Service, Co., Ltd.	Current rating
October 4, 2023	Corporate bond	AAA (Stable)	Korea Investors Service, Inc.	Current rating

Credit rating date	Subject of rating	Credit rating	Credit rating entity(Credit rating range)	Rating classification
October 5, 2023	Corporate bond	AAA (Stable)	Korea Ratings	Current rating
October 5, 2023	Corporate bond	AAA (Stable)	NICE Investors Service, Co., Ltd.	Current rating
February 7, 2024	Corporate bond	AAA (Stable)	Korea Ratings	Current rating
February 7, 2024	Corporate bond	AAA (Stable)	Korea Investors Service, Inc.	Current rating
February 7, 2024	Corporate bond	AAA (Stable)	NICE Investors Service, Co., Ltd.	Current rating
June 7, 2024	Hybrid securities	AA+ (Stable)	Korea Ratings	Current rating
June 7, 2024	Corporate bond	AAA (Stable)	Korea Ratings	Current rating
June 11, 2024	Hybrid securities	AA+ (Stable)	Korea Investors Service, Inc.	Current rating
June 11, 2024	Corporate bond	AAA (Stable)	Korea Investors Service, Inc.	Current rating
June 17, 2024	Hybrid securities	AA+ (Stable)	NICE Investors Service, Co., Ltd.	Current rating
June 17, 2024	Corporate bond	AAA (Stable)	NICE Investors Service, Co., Ltd.	Current rating
November 26, 2024	Corporate bond	AAA (Stable)	Korea Investors Service, Inc.	Current rating
November 27, 2024	Corporate bond	AAA (Stable)	NICE Investors Service, Co., Ltd.	Current rating
November 27, 2024	Corporate bond	AAA (Stable)	Korea Ratings	Current rating
February 10, 2025	Corporate bond	AAA (Stable)	Korea Ratings	Current rating
February 10, 2025	Corporate bond	AAA (Stable)	Korea Investors Service, Inc.	Current rating
February 10, 2025	Corporate bond	AAA (Stable)	NICE Investors Service, Co., Ltd.	Current rating
*	Rating definition: “AAA” – The certainty of principal and interest payment is at the highest<br>level with extremely low investment risk and is stable such that it will not be influenced by reasonably foreseeable changes in external factors.
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**	Rating definition: “AA” – The certainty of principal and interest payment is very high with very<br>low investment risk, but has slightly inferior factors compared to securities that are rated “AAA.”
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***	From ratings “AA” to “B,” “+” and “-” signs are attached depending on<br>the relative superiority within the grade.
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(2)	Commercial paper (“CP”) and short-term bonds
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Credit rating date	Subject of rating	Credit rating	Credit rating entity(Credit ratingrange)	Ratingclassification
---	---	---	---	---
June 15, 2021	CP	A1	NICE Investors Service Co., Ltd.	Current rating
June 15, 2021	Short-term bond	A1	NICE Investors Service Co., Ltd.	Current rating
June 16, 2021	CP	A1	Korea Investors Service, Inc.	Current rating
June 16, 2021	Short-term bond	A1	Korea Investors Service, Inc.	Current rating
June 25, 2021	CP	A1	Korea Ratings	Current rating
June 25, 2021	Short-term bond	A1	Korea Ratings	Current rating
October 14, 2021	CP	A1	Korea Investors Service, Inc.	Regular rating
October 14, 2021	Short-term bond	A1	Korea Investors Service, Inc.	Regular rating
October 15, 2021	Short-term bond	A1	NICE Investors Service Co., Ltd.	Regular rating
October 15, 2021	CP	A1	NICE Investors Service Co., Ltd.	Regular rating
October 15, 2021	CP	A1	Korea Ratings	Regular rating
October 15, 2021	Short-term bond	A1	Korea Ratings	Regular rating
November 3, 2021	CP	A1	Korea Investors Service, Inc.	Rating update
November 3, 2021	Short-term bond	A1	Korea Investors Service, Inc.	Rating update
June 15, 2022	CP	A1	Korea Investors Service, Inc.	Current rating
June 15, 2022	Short-term bond	A1	Korea Investors Service, Inc.	Current rating
June 20, 2022	CP	A1	Korea Ratings	Current rating
June 20, 2022	Short-term bond	A1	Korea Ratings	Current rating
June 21, 2022	CP	A1	NICE Investors Service Co., Ltd.	Current rating
June 21, 2022	Short-term bond	A1	NICE Investors Service Co., Ltd.	Current rating
December 2, 2022	CP	A1	Korea Ratings	Regular rating
December 2, 2022	Short-term bond	A1	Korea Ratings	Regular rating
December 2, 2022	CP	A1	Korea Investors Service, Inc.	Regular rating
December 2, 2022	Short-term bond	A1	Korea Investors Service, Inc.	Regular rating
December 2, 2022	CP	A1	NICE Investors Service Co., Ltd.	Regular rating
December 2, 2022	Short-term bond	A1	NICE Investors Service Co., Ltd.	Regular rating
January 2, 2023	Short-term bond	A1	Korea Investors Service, Inc.	Rating update
January 3, 2023	Short-term bond	A1	NICE Investors Service Co., Ltd.	Rating update
May 22, 2023	CP	A1	NICE Investors Service Co., Ltd.	Current rating

Credit rating date	Subject of rating	Credit rating	Credit rating entity(Credit ratingrange)	Ratingclassification
May 22, 2023	Short-term bond	A1	NICE Investors Service Co., Ltd.	Current rating
May 22, 2023	Short-term bond	A1	Korea Ratings	Current rating
May 22, 2023	CP	A1	Korea Ratings	Current rating
May 22, 2023	Short-term bond	A1	Korea Investors Service, Inc.	Current rating
May 22, 2023	CP	A1	Korea Investors Service, Inc.	Current rating
September 27, 2023	CP	A1	NICE Investors Service Co., Ltd.	Regular rating
September 27, 2023	Short-term bond	A1	NICE Investors Service Co., Ltd.	Regular rating
October 4, 2023	Short-term bond	A1	Korea Investors Service, Inc.	Regular rating
October 4, 2023	CP	A1	Korea Investors Service, Inc.	Regular rating
October 13, 2023	Short-term bond	A1	Korea Ratings	Regular rating
October 13, 2023	CP	A1	Korea Ratings	Regular rating
June 7, 2024	Short-term bond	A1	Korea Ratings	Current rating
June 7, 2024	CP	A1	Korea Ratings	Current rating
June 11, 2024	Short-term bond	A1	Korea Investors Service, Inc.	Current rating
June 11, 2024	CP	A1	Korea Investors Service, Inc.	Current rating
June 17, 2024	Short-term bond	A1	NICE Investors Service Co., Ltd.	Current rating
June 17, 2024	CP	A1	NICE Investors Service Co., Ltd.	Current rating
November 26, 2024	Short-term bond	A1	Korea Investors Service, Inc.	Current rating
November 26, 2024	CP	A1	Korea Investors Service, Inc.	Current rating
November 27, 2024	Short-term bond	A1	Korea Ratings	Current rating
November 27, 2024	CP	A1	Korea Ratings	Current rating
November 27, 2024	Short-term bond	A1	NICE Investors Service Co., Ltd.	Current rating
November 27, 2024	CP	A1	NICE Investors Service Co., Ltd.	Current rating
*	Rating definition: “A1” – Timely repayment capability is at the highest level with<br>extremely low investment risk and is stable such that it will not be influenced by reasonably foreseeable changes in external factors.
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(3)	International credit ratings
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Date of credit rating	Subject of rating	Credit rating ofsecurities	Credit rating agency	Rating type
---	---	---	---	---
March 4, 2021	Bonds denominated in foreign currency	A- (Stable)	Fitch Ratings	Regular rating
March 30, 2021	Bonds denominated in foreign currency	A- (Stable)	S&P Global Ratings	Regular rating
June 16, 2021	Bonds denominated in foreign currency	A3 (Stable)	Moody’s Investors Service	Regular rating
December 8, 2021	Bonds denominated in foreign currency	A- (Stable)	Fitch Ratings	Regular rating
February 25, 2022	Bonds denominated in foreign currency	A- (Stable)	S&P Global Ratings	Regular rating
December 2, 2022	Bonds denominated in foreign currency	A- (Positive)	Fitch Ratings	Regular rating
February 23, 2023	Bonds denominated in foreign currency	A- (Stable)	S&P Global Ratings	Regular rating
August 28, 2023	Bonds denominated in foreign currency	A3 (Stable)	Moody’s Investors Service	Regular rating
November 28, 2023	Bonds denominated in foreign currency	A- (Stable)	Fitch Ratings	Regular rating
February 25, 2024	Bonds denominated in foreign currency	A- (Stable)	S&P Global Ratings	Regular rating
May 2, 2024	Bonds denominated in foreign currency	A- (Stable)	Fitch Ratings	Regular rating
May 24, 2024	Bonds denominated in foreign currency	A3 (Stable)	Moody’s Investors Service	Regular rating
January 7, 2025	Bonds denominated in foreign currency	A- (Stable)	Fitch Ratings	Regular rating
(4)	Listing (registration or designation) of Company’s shares and special listing status<br>
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Listing (registration or designation) ofstock	Date of listing<br><br><br>(registration or designation)	Special listing
KOSPI Market of Korea Exchange	November 7, 1989	Not applicable

2. Company History

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

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

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

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

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

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

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

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

March 2021: Merger of SK Infosec and Former ADT CAPS

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

A.	Location of Headquarters
•	22 Dohwa-dong, Mapo-gu, Seoul (July 11, 1988)
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•	16-49 Hangang-ro 3-ga, Yongsan-gu, Seoul (November 19, 1991)
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•	267 Namdaemun-ro 5-ga, Jung-gu, Seoul (June 14, 1995)
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•	99 Seorin-dong, Jongno-gu, Seoul (December 20, 1999)<br>
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•	65 Euljiro, Jung-gu, Seoul (December 13, 2004)
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B.	Significant Changes in Management
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Date of change	Shareholder meetingclassification	Appointment		Term Termination orDismissal
---	---	---	---	---
		Newly appointed	Re-elected
March 26, 2020	General Meeting of Shareholders	Yong-Hak Kim, Junmo Kim	Jung Ho Park, Dae Sik Cho, Jung Ho Ahn	Jae Hoon Lee, Jae Hyeon Ahn
March 25, 2021	General Meeting of Shareholders	—	Young Sang Ryu, Youngmin Yoon	—
August 25, 2021	—	—	—	Dae Sik Cho
October 12, 2021	Extraordinary Meeting of Shareholders	Kyu-Nam Choi	—	—
November 1, 2021	—	Young Sang Ryu	—	Jung Ho Park
March 25, 2022	General Meeting of Shareholders	Jong Ryeol Kang	Seok-Dong Kim	—
March 28, 2023	General Meeting of Shareholders	Haeyun Oh	Yong-Hak Kim, Junmo Kim	Jung Ho Ahn
March 26, 2024	General Meeting of Shareholders	Yang Seob Kim, Sung Hyung Lee, Mi Kyung Noh	Young Sang Ryu	Kyu-Nam Choi, Youngmin Yoon
*	At the 40th General Meeting of Shareholders held on March 26, 2024, Yang Seob Kim, Sung Hyung Lee and Mi<br>Kyung Noh were newly elected as an inside director, a non-executive director and an independent director/audit committee member, respectively. At the same meeting, Young Sang Ryu was re-elected as an inside director.
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**	The appointments of non-executive director and independent<br>director/audit committee member were decided at the 41st General Meeting of Shareholders, which was held after the date of original submission of this business report.
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C.	Change in Company Name

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

D.	Mergers, Acquisitions and Restructuring

[SK Telecom]

(1) Spin-off of T Map Mobility

In order to strengthen the business expertise and enhance the efficiency of the Company’s mobility business, the Company engaged in a vertical spin-off of such business into T Map Mobility. The spin-off was a simple vertical spin-off, whereby the shareholder ownership composition remained the same, and it had no effect on the Company’s consolidated financial statements. The spin-off registration date was December 30, 2020.

*	See the report on “Decision to Spin Off Mobility Business” filed by the Company on October 16,<br>2020, for more information.

(2) Spin-off of SK Square

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

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

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

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

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

[SK Broadband]

(1) Transfer of business

On July 30, 2020, SK Broadband’s board of directors resolved to approve a certain mobile virtual network operator (“MVNO”) Business Transfer Agreement in connection with the sale of its MVNO business to Korea Cable Telecom Co., Ltd. The sale was a follow-up measure to, and a condition to the Ministry of Science and ICT (“MSIT”)’s approval of, the Tbroad Merger, and was carried out pursuant to the terms of the merger agreement for the Tbroad Merger. The transfer was completed on August 31, 2020.

(2) Acquisition of business

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

(3) Establishment of a subsidiary and acquisition of shares

On January 5, 2021, SK Broadband established Media S Co., Ltd., a subsidiary engaged in the production and supply of broadcasting programs, through a capital contribution of Won 23.0 billion (representing a 100% equity interest), and the subsidiary was added as a member of the SK Group as of March 2, 2021. On June 23, 2022, SK Broadband acquired 5,000,000 additional shares of Media S Co., Ltd. for Won 25 billion through a capital increase by allocation to shareholders.

(4) Merger

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

(5) Transfer of business

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

(6) Capital reduction of subsidiary

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

[SK Telink]

(1) Transfer of access ID business

On May 22, 2020, the board of directors of SK Telink resolved to transfer its access ID business and related assets to Former ADT CAPS, a related party, for Won 0.4 billion, effective as of May 31, 2020.

(2) Transfer of device business

On May 22, 2020, the board of directors of SK Telink resolved to transfer its device business and related assets to SK Networks Co., Ltd., a related party, for Won 4.4 billion, effective as of July 1, 2020. As such transfer qualified as a simplified business transfer, the board resolution served as requisite approval in lieu of approval by the general meeting of shareholders.

(3) Transfer of B2B business

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

[PS&Marketing]

(1) Acquisition of shares of SK m&service Co., Ltd. (“SK M&Service”)

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

3. Total Number of Shares

A.	Total Number of Shares
(As of December 31, 2024)	(Unit: in shares and percentages)
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Classification	Share type						Remarks
	Commonshares		Preferredshares		Total
I. Total number of authorized shares		670,000,000		—		670,000,000		—
II. Total number of shares issued to date		304,927,159		—		304,927,159		—

(As of December 31, 2024)	(Unit: in shares and percentages)
Classification	Share type								Remarks
	Commonshares			Preferredshares		Total
III. Total number of shares cancelled to date		90,137,106			—		90,137,106			—
a. reduction of capital		—			—		—			—
b. cancelled with profit		90,137,106			—		90,137,106			—
c. redemption of redeemable shares		—			—		—			—
d. others		—			—		—			—
IV. Total number of issued shares (II-III)		214,790,053			—		214,790,053			—
V. Number of treasury shares		1,903,711			—		1,903,711			—
VI. Number of outstanding shares (IV-V)		212,886,342			—		212,886,342			—
VII. Percentage of treasury shares held		0.9	%		—		0.9	%		—
*	Following the stock split of October 28, 2021 (the “Stock Split”) and the split-off of November 1, 2021, the total number of issued shares changed from 72,060,143 shares (par value of Won 500 per share) to 218,833,144 shares (par value of Won 100 per share). Additionally, the total<br>number of issued shares changed to 214,790,053 shares following the cancellation of 4,043,091 treasury shares on February 5, 2024.
---	---
**	Number of treasury shares includes 54,032 treasury shares acquired relating to fractional shares from the Spin-off.
---	---
B.	Treasury Shares
---	---
(As of December 31, 2024)				(Unit: in shares)
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
Acquisition methods				Type of shares		At thebeginningof period		Changes					At theend ofperiod
	Acquired(+)						Disposed<br>(-)			Cancelled(-)
Acquisition pursuant to the Financial InvestmentServices and Capital Markets Act of Korea	Directacquisition		Direct acquisitionfrom market		Common shares		—		—		—	—		—
					Preferred shares		—		—		—	—		—
			Directover-the-counteracquisition		Common shares		—		—		—	—		—
					Preferred shares		—		—		—	—		—
			Tender offer		Common shares		—		—		—	—		—
					Preferred shares		—		—		—	—		—
			Sub-total (a)		Common shares		—		—		—	—		—
					Preferred shares		—		—		—	—		—
	Acquisitionthroughtrust andotheragreements		Held by trustee		Common shares		5,773,410		317,000		6,090,410	—		—
					Preferred shares		—		—		—	—		—
			Held in actualstock		Common shares		360,004		6,090,410		503,612	4,043,091		1,903,711
					Preferred shares		—		—		—	—		—
			Sub-total (b)		Common shares		6,133,414		6,407,410		6,594,022	4,043,091		1,903,711
					Preferred shares		—		—		—	—		—
Other acquisition (c)					Common shares		—		—		—	—		—
		Preferred shares			—		—		—		—	—
Total (a+b+c)					Common shares		6,133,414		6,407,410		6,594,022	4,043,091		1,903,711
		Preferred shares			—		—		—		—	—
*	On January 29, 2024, the Company disposed 498,135 treasury shares for bonus payment purposes.<br>
---	---
**	On February 5, 2024, the Company cancelled with profit 4,043,091 treasury shares.
---	---
***	On April 29, 2024, the Company disposed 5,477 treasury shares for bonus payment purposes.<br>
---	---

4. Status of Direct Acquisitions and Disposal of Treasury Shares

(As of December 31, 2024)	(Unit: in shares and percentages)
Classification	Expected Acquisition (Disposal)Period		ExpectedNumber ofShares (A)		ExecutedNumber ofShares (B)		ExecutionRatio (B/A)			Reporting Date
	Start Date	End Date
Direct Disposal	Feb. 3, 2021	Feb. 3, 2021		604,950		604,950		100	%	Feb. 8, 2021
Direct Disposal	Jun. 21, 2021	Jun. 21, 2021		2,500		2,500		100		Jun. 22, 2021
Direct Disposal	Oct. 25, 2021	Dec. 16, 2021		2,526,553		2,526,553		100		Dec. 20, 2021
Direct Disposal	Jan. 24, 2022	Jan. 24, 2022		413,080		413,080		100		Jan. 27, 2022
Direct Disposal	Feb. 25, 2022	Feb. 25, 2022		7,598		7,598		100		Feb. 28, 2022
Direct Disposal	May 2, 2022	May 2, 2022		5,984		5,984		100		May 17, 2022
Direct Disposal	May 13, 2022	May 13, 2022		23,239		23,239		100		May 17, 2022
Direct Disposal	Feb. 9, 2023	Feb. 9, 2023		324,580		324,580		100		Feb. 13, 2023
Direct Disposal	Feb. 27, 2023	Feb. 27, 2023		109,508		109,508		100		Mar. 2, 2023
Direct Disposal	Apr. 21, 2023	Apr. 21, 2023		6,999		6,999		100		Apr. 24, 2023
Direct Disposal	Jan. 29, 2024	Jan. 29, 2024		498,135		498,135		100		Feb. 2, 2024
Direct Disposal	Apr. 29, 2024	Apr. 29, 2024		5,477		5,477		100		Apr. 30, 2024
*	The expected number of shares and executed number of shares reflect the effect of the Stock Split, where<br>applicable.
---	---

5. Status of Trust Agreement on Repurchase of Treasury Shares

(As of December 31, 2024)	(Unit: in Won, percentages and number of instances)
Classification	Agreement Period		Maximum Valueof TreasuryShares to beAcquired underAgreement (A)		Actual Value ofTreasury SharesAcquired underAgreement (B)		ExecutionRatio (B/A)			Change of SalesDirection			Reporting Date
	Start Date	End Date				Number ofInstances					Date
Trust Agreement Execution	Aug. 28,<br>2020	Apr. 30,<br>2021	~~W~~	500,000,000,000	~~W~~	499,646,025,000		99.93	%		—	—	Apr. 30, 2021
Trust Agreement Execution	Jul. 27,<br>2023	Jan. 26,<br>2024	~~W~~	300,000,000,000	~~W~~	301,274,969,250		100.42	%		—	—	Jan. 26, 2024
*	The Company completed the repurchase of treasury shares pursuant to the Trust Agreement and reported the<br>results of the termination of the Trust Agreement on January 26, 2024.
---	---

6. Matters Concerning Articles ofIncorporation

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

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
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><br> <br>Various media-related services, such as channel management services<br>including video-on-demand services
	Home & Service Co., Ltd.	System maintenance of high-speed Internet, Internet protocol TV (“IPTV”) and fixed-line services
	SK Telink Co., Ltd.	International wireless direct-dial “00700” services and 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
	SK m&service Co., Ltd.	Database and online information services
	SAPEON Inc. (“Sapeon”)	Manufacture of non-memory and other electronic integrated circuits
	Astra AI Infra LLC	Investments
	SK Telecom Americas, Inc.	Information collection and consulting services
	Global AI Platform Corporation	Software development and supply business

[Wireless Business]

A.	Overview

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

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

The Company has been maintaining solid profitability based on the stable sales generated from its 5G subscribers, together with efficient investments in, and operation of, its wireless networks and stabilization of market competition. The number of the Company’s 5G subscribers, which has reached its maturation stage and continues to grow gradually, recorded 16.92 million subscribers as of December 31, 2024, and accounted for 74% of the Company’s total number of subscribers. The Company seeks to enhance profitability through stable market operations while striving to further expand customer choices and benefits in order to minimize the slowdown in the growths of wireless services revenue and Average Revenue Per User (“ARPU”). The Company seeks to achieve solid growth in profit from its wireless telecommunications business even in the mature 5G market.

B.	Industry Characteristics

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

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

C.	Growth Potential

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

		(Unit: in 1,000 persons)
Classification		As of December 31,
	2024			2023		2022
Number of subscribers	SK Telecom		31,786		31,276		30,452
	Others (KT, LG U+)		38,360		35,643		32,676
	MVNO		17,825		15,851		12,829
	Total		87,971		82,770		75,957
*	Source: Wireless telecommunications service data from the MSIT as of December 31, 2024.<br>
---	---
D.	Domestic and Overseas Market Conditions
---	---

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

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

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

(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 December 31,
	2024		2023		2022
Mobile communication services		45.3		46.7		48.2
*	Source: Wireless telecommunications service data from the MSIT as of December 31, 2024.<br>
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E.	Competitive Strengths
---	---

In 2021, the Company successfully completed the Spin-off in order to maximize shareholder value. In the same year, the Company also unveiled its “SKT 2.0” vision to pursue the maximization of its overall enterprise value centered around five major business areas. In November 2022, the Company announced its differentiated “AI company” vision to further organize and clarify the direction of SKT 2.0 and combine AI with connectivity technologies based on its main telecommunications business. In September 2023, as part of the Company’s effort to transform into a “global AI company,” the Company announced its new “AI Pyramid” strategy, which aims to bring innovation across various industrial and lifestyle areas centered around three key aspects. The AI Pyramid strategy is in the form of a pyramid and integrates a “self-reinforcement model,” which seeks to strengthen the Company’s relationship with its customers through advances in the Company’s AI technology and the creation of AI services, with a “cooperation model,” which focuses on AI-related alliances. Through these initiatives, the Company is striving to transform into a global AI company.

In 2024, the Company laid the foundation for its transition into an AI company while further solidifying its leadership in 5G. Based on such foundation, the Company achieved sturdy growth across its existing businesses, including wireless and fixed-line telecommunications, media and enterprise, and recorded Won 17.9 trillion in revenue on a consolidated basis.

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 telecommunications 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]

A.	Overview

For the year ended December 31, 2024, SK Broadband recorded Won 4.41 trillion in revenue on a consolidated basis, which represented a 3.1% increase from Won 4.27 trillion for the year ended December 31, 2023. Such increase was primarily attributable to the growth of SK Broadband’s media businesses resulting from an increase in the number of subscribers and the growth of its B2B business primarily focused on new data centers.

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

For the year ended December 31, 2024, the media business segment recorded Won 1.90 trillion in revenue, which represented a 0.8% increase compared to the year ended December 31, 2023. For the year ended December 31, 2024, the fixed-line business segment recorded Won 2.49 trillion in revenue, which represented a 5.0% increase compared to the year ended December 31, 2023.

B.	Industry Characteristics

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

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

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

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

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

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

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

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

C.	Growth Potential
		(Unit: in persons)
---	---	---	---	---	---	---	---
Classification		As of December 31,
	2024			2023		2022
Fixed-line Subscribers	High-speed Internet		24,721,782		24,098,164		23,537,333
	Fixed-line telephone		10,325,245		10,973,838		11,621,413
	IPTV		21,071,566		20,870,152		20,384,330
	Cable TV		12,412,495		12,586,391		12,777,073
*	Source: MSIT website.
---	---
**	High-speed Internet and fixed-line telephone subscribers represent the number of subscribers as of<br>December 31, 2024, while IPTV and cable TV subscribers represent the average number of subscribers in the first half of 2024.
---	---
D.	Cyclical Nature and Seasonality
---	---

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

E.	Domestic and Overseas Market Conditions

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

	(Unit: in percentages)
Classification	As of December 31,
	2024		2023		2022
High-speed Internet (including resales)		28.9		28.7		28.5
Fixed-line telephone (including Voice over Internet Protocol (“VoIP”)		18.3		18.0		17.8
IPTV		32.0		31.8		31.1
Cable TV		22.8		22.4		22.2
*	Source: MSIT website.
---	---
**	With respect to fixed-line telephone, the market share was calculated based on market shares among the Company,<br>KT and LG U+ and is based on the number of landline and IP phone subscribers.
---	---
***	High-speed Internet and fixed-line telephone subscribers represent the number of subscribers as of<br>December 31, 2024, while IPTV and cable TV subscribers represent the average number of subscribers in first half of 2024.
---	---

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

[Other Businesses]

A.	Other businesses

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

2. Key Financial Data by Business Line

A.	Assets
	(Unit: in millions of Won and percentages)
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
Classification	As of December 31,
	2024						2023						2022
	Amount			Ratio			Amount			Ratio			Amount			Ratio
Wireless		25,154,898			75	%		25,608,563			77	%		27,078,021			79	%
Fixed-line		7,174,920			21	%		6,825,342			20	%		6,588,076			19	%
Other		1,276,546			4	%		910,020			3	%		762,028			2	%
Subtotal		33,606,364			100	%		33,343,925			100	%		34,428,124			100	%
Consolidation Adjustment		(3,091,111	)		—			(3,224,698	)		—			(3,119,862	)		—
Total		30,515,254			—			30,119,227			—			31,308,262			—
B.	Revenue
---	---
	(Unit: in millions of Won and percentages)
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
Classification	For the year ended December 31,
	2024					2023					2022
	Amount		Ratio			Amount		Ratio			Amount		Ratio
Wireless		13,318,213		74	%		13,123,166		75	%		12,942,316		75	%
Fixed-line		4,075,412		23	%		3,928,020		22	%		3,812,989		22	%
Other		546,984		3	%		557,325		3	%		549,668		3	%
Total		17,940,609		100	%		17,608,511		100	%		17,304,973		100	%
C.	Operating Profit
---	---
	(Unit: in millions of Won and percentages)
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
Classification	For the year ended December 31,
	2024						2023						2022
	Amount			Ratio			Amount			Ratio			Amount			Ratio
Wireless		1,529,971			84	%		1,463,934			84	%		1,334,306			81	%
Fixed-line		366,517			20	%		329,072			19	%		311,083			19	%
Other		(64,929	)		(4	)%		(42,771	)		(2	)%		(2,102	)		0	%
Subtotal		1,831,559			100	%		1,750,235			100	%		1,643,287			100	%
Consolidation Adjustment		(8,150	)		—			2,969			—			(31,216	)		—
Total		1,823,409			—			1,753,204			—			1,612,070			—

3. Updates on Major Products and Services

	(Unit: in millions of Won and percentages)
Business				For the year ended December 31,
				2024					2023					2022
	Major Companies	Items	MajorTrademarks	ConsolidatedSalesAmount		Ratio			ConsolidatedSalesAmount		Ratio			ConsolidatedSalesAmount		Ratio
Wireless	SK Telecom Co., Ltd.,<br> <br>PS&Marketing Co., Ltd.,<br>SK O&S Co., Ltd.,<br><br><br>Service Ace Co., Ltd.<br> <br>SK m&service Co., Ltd.	Mobile<br>communications<br>service, wireless<br>data service,<br>ICT service and<br>others	T, 5GX, T<br>Plan and<br>others		13,318,213		74	%		13,123,166		75	%		12,942,316		75	%
Fixed-line	SK Broadband Co., Ltd.,<br>Home & Service Co.,<br> Ltd.,<br>SK Telink Co., Ltd.	Fixed-line<br>phone, high-<br>speed Internet,<br>data and<br>network lease<br>service and<br>others	B tv, 00700<br>international<br>call,<br>7mobile and<br>others		4,075,412		23	%		3,928,020		22	%		3,812,989		22	%
Other	SK stoa Co., Ltd.., etc.	Commercial<br>retail data<br>broadcasting<br>channel service<br>and others	Stoa ON		546,984		3	%		557,325		3	%		549,668		3	%
Total					17,940,609		100	%		17,608,511		100	%		17,304,973		100	%

4. Price Trends for Major Products

[Wireless Business]

As of December 31, 2024, based on the Company’s standard monthly subscription plan, the basic service fee was Won 12,100 (including value-added tax) **** and the usage fee was Won 1.98 per second. Among the 4G-based plans, the “T-Plan Safe 4G” provides 4 GB of data and unlimited voice calls at Won 50,000 per month (including value-added tax). Among the 5G-based plans, the “Basic” plan provides 11 GB of data and unlimited voice calls at Won 49,000 per month (including value-added tax). In June 2023, the Company launched the “5G 0 Youth” plan, which actively reflects the data usage patterns and lifestyle trends of the younger demographics. In March 2024, the Company launched the “Compact” plan, which provides 5G data at Won 39,000 per month (including value-added tax). The Company plans to continue to introduce new services that reach out to different customer segments. The Company provides a variety of other subscription plans catering to subscriber demand, which may be reviewed on the Company’s website at www.tworld.co.kr.

[Fixed-line Business]

In 2024, SK Broadband launched various new subscription plans. In March 2024, SK Broadband launched the “2030 Direct” plan for customers in their 20s and 30s, offering affordable Internet services at a rate equivalent to a three-year contract with just a one-year commitment. SK Broadband also launched the “Budget-friendly Combination” plan, which offers a discount when bundled with wireless services of certain MVNOs that lease SK Telecom’s network.

In April 2024, SK Broadband introduced discounted subscription plans for its direct cable TV service plans. In May 2024, SK Broadband launched the “B tv x Netflix” plan, which allows users to subscribe to both B tv and Netflix services. The “B tv x Netflix” plan includes four options (“B tv x Netflix Premium,” “B tv x Netflix,” “B tv x Standard Netflix Premium” and “B tv x Standard Netflix”), which are offered at a monthly discount of up to Won 2,000 compared to when subscribing separately to Netflix. In September 2024, SK Broadband launched a new subscription plan that bundles the B tv and B tv+ monthly subscriptions (“B tv All+” and “B tv Standard+”), allowing users to save up to 61% compared to when subscribing to the plans separately. Additionally, SK Broadband introduced a new set-top box, the “AI 4 Vision,” which is equipped with AI and 4K camera features, allowing users to enjoy a variety of AI-based services. In December 2024, SK Broadband launched the “The Dream Success Package,” a solution plan customized for small business owners, offering discounts when bundling essential communication products (including Internet, telephone and TV) with at least one of 13 solution products (including order and payment systems such as card payments, secure payments, kiosks and cable order systems).

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

5. Investment Status

[Wireless Business]

A.	Investment in Progress
	(Unit: in billions of Won)
---	---	---	---	---	---
Purpose of investment	Subject of investment	Investment<br>period	Expected investmentamount	Amount already invested	Investment effect
Upgrade/ New installation	Network, systems<br>and others	Year ended<br>December 31, 2024	1,544	1,544	Upgrades to the<br>existing services and<br>expanded<br>provision of network<br>services including 5G
B.	Future Investment Plan
---	---
Purpose of investment	Subject of investment	Expected investment for each year		Investment effect
---	---	---	---	---
		2025	2026
Upgrade/ New installation	Network, systems and others	To be determined	To be determined	Upgrades to the existing services and expanded provision of network services including 5G

[Fixed-line Business]

A.	Investment in Progress and Future Investment Plan
	(Unit: in billions of Won)
---	---	---	---	---	---
Purpose of investment	Subject of investment	Investment<br>period	Amount<br>already<br>invested	Future<br>investment	Investment effect
Coverage expansion, upgrade of media platform	Network, systems,<br>Internet data center<br>and others	Year ended<br>December 31,<br>2024	850.2	To be<br>determined	Securing subscriber network and equipment; quality and system improvement

6. Revenues

	(Unit: in millions of Won)
Business	Sales type		Item		For the yearended December 31,2024		For the yearended December 31,2023		For the yearended December 31,2022
Wireless		Services	Mobile communication, wireless data, information communication	Export		212,235		169,885		140,642
				Domestic		13,105,978		12,953,281		12,801,674
				Subtotal		13,318,213		13,123,166		12,942,316
Fixed-line		Services	Fixed-line, high-speed Internet, data, lease line service	Export		213,815		178,824		183,812
				Domestic		3,861,597		3,749,196		3,629,177
				Subtotal		4,075,412		3,928,020		3,812,989
Other		Services	Commercial retail data broadcasting channel services	Export		—		—		—
				Domestic		546,984		557,325		549,668
				Subtotal		546,984		557,325		549,668
Total				Export		426,050		348,709		324,454
				Domestic		17,514,559		17,259,802		16,980,519
				Total		17,940,609		17,608,511		17,304,973

	(Unit: in millions of Won)
For the year ended December 31, 2024	Wireless		Fixed-line		Other			Sub total		Consolidationadjustment			Afterconsolidation
Total sales		14,866,217		5,271,705		614,036			20,751,958		(2,811,349	)		17,940,609
Internal sales		1,548,004		1,196,293		67,052			2,811,349		(2,811,349	)		—
External sales		13,318,213		4,075,412		546,984			17,940,609		—			17,940,609
Depreciation and amortization		2,688,764		966,904		25,824			3,681,492		(121,118	)		3,560,374
Operating profit (loss)		1,529,971		366,517		(64,929	)		1,831,559		(8,150	)		1,823,409
Finance profit (loss)												****		(250,884	)
Gain from investments in subsidiaries, associates and joint ventures												****		321,787
Other non-operating profit(loss)												****		(132,547	)
Profit before income tax												****		1,761,765

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 December 31, 2024 are as follows: ****

[SK Telecom]

Borrowing date	Hedged item	Hedged risk	Contract type	Financial institution	Duration of contract
July 20, 2007	Fixed rate foreign currency denominated bonds<br><br><br>(face value of USD 400,000,000)	Foreign currency risk	Cross currency swap	Morgan Stanley and four other banks	July 20, 2007 – July 20, 2027
March 4, 2020	Floating rate foreign currency denominated bonds<br><br><br>(face value of USD 300,000,000)	Foreign currency and interest rate risks	Cross currency interest rate swap	Citibank	March 4, 2020 – June 4, 2025
June 28, 2023	Fixed rate foreign currency denominated bonds<br><br><br>(face value of USD 300,000,000)	Foreign currency risk	Cross currency interest rate swap	Citibank, Shinhan Bank, KDB, J.P. Morgan	June 28, 2023 – June 28, 2028
October 7, 2024	Floating rate Won denominated borrowings<br><br><br>(face value of Won 200 billion)	Interest rate risk	Interest rate swap	DBS Bank Ltd	October 10, 2024 – October 8, 2026

[SK Broadband]

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

8. Major Contracts

None.

9. R&D Investments

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

		(Unit: in millions of Won except percentages)
Category		For the year endedDecember 31, 2024			For the year endedDecember 31, 2023			For the year endedDecember 31, 2022			Remarks
Raw material			492			48			23			—
Labor			134,508			140,790			113,297			—
Depreciation			134,989			137,264			135,604			—
Commissioned service			61,588			51,749			46,447			—
Others			61,267			61,992			78,989			—
Total R&D costs			392,844			391,843			374,360			—
Government Subsidies			—			—			—			—
Accounting	Sales and administrative expenses		378,079			369,507			340,864			—
	Development costs (Intangible<br>assets)		14,765			22,334			33,495			—
R&D cost / sales amount ratio (Total R&D costs / Current sales<br>amount×100)			2.19	%		2.23	%		2.16	%		—

10. Other information relating to investment decisions

A.	Brand Management Policies

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

B.	Business-related Intellectual Property

[SK Telecom]

As of December 31, 2024, the registered patents and trademarks held by the Company included 3,125 Korean-registered patents, 1,738 foreign-registered patents and 781 Korean-registered trademarks. The number of registered patents and trademarks is subject to constant change due to the acquisition of new rights, expiration of terms, abandonments and dispositions.

[SK Broadband]

As of December 31, 2024, SK Broadband held 227 Korean-registered patents and 47 foreign-registered patents (including those held jointly with other companies). It also holds 278 Korean-registered trademarks. SK Broadband owns intellectual property rights to its proprietary graphic design of the alphabet “B” representing its brand. The designed alphabet “B” is registered in all business categories for trademarks (total of 45). The number of registered patents and trademarks is subject to continual change due to the acquisition of new rights, expiration of terms, abandonments and dispositions.

C.	Business-related Pollutants and Environmental Protection

[SK Telecom]

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

[SK Broadband]

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

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

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 December 31, 2024, 2023 and 2022 and for the years ended December 31, 2024, 2023 and 2022. The Company’s consolidated financial statements as of December 31, 2024 and 2023 and for the years ended December 31, 2024 and 2023, which are prepared in accordance with K-IFRS, are attached hereto.

	(Unit: in millions of Won except number of companies)
	As of<br>December 31, 2024			As of<br>December 31, 2023			As of<br>December 31, 2022
Assets
Current Assets		7,476,682			6,585,602			7,219,196
• Cash and Cash Equivalents		2,023,721			1,454,978			1,882,291
• Accounts Receivable – Trade, net		1,989,306			1,978,532			1,970,611
• Accounts Receivable – Other, net		369,192			344,350			479,781
• Others		3,094,463			2,807,742			2,886,513
Non-Current Assets		23,038,573			23,533,625			24,089,066
• Long-Term Investment Securities		1,877,922			1,679,384			1,410,736
• Investments in Associates and Joint Ventures		2,341,827			1,915,012			1,889,289
• Property and Equipment, net		12,617,394			13,006,196			13,322,492
• Goodwill		2,072,493			2,075,009			2,075,009
• Intangible Assets, net		2,194,871			2,861,137			3,324,910
• Others		1,934,066			1,996,887			2,066,630
Total Assets		30,515,255			30,119,227			31,308,262
Liabilities
Current Liabilities		9,224,278			6,993,980			8,046,541
Non-Current Liabilities		9,463,343			10,896,848			11,106,525
Total Liabilities		18,687,621			17,890,828			19,153,066
Equity
Equity Attributable to Owners of the Parent Company		11,698,627			11,389,046			11,318,320
Share Capital		30,493			30,493			30,493
Capital Surplus (Deficit) and Other Capital Adjustments		(11,954,936	)		(11,828,644	)		(11,567,117	)
Retained Earnings		22,976,127			22,799,981			22,463,711
Reserves		646,943			387,216			391,233
Non-controlling Interests		129,007			839,353			836,876
Total Equity		11,827,634			12,228,399			12,155,196
Total Liabilities and Equity		30,515,255			30,119,227			31,308,262

	(Unit: in millions of Won except per share data and number of<br>consolidated subsidiaries)
	For the year endedDecember 31, 2024		For the year endedDecember 31, 2023		For the year endedDecember 31, 2022
Operating Revenue		17,940,609		17,608,511		17,304,973
Operating Profit		1,823,409		1,753,204		1,612,070
Profit Before Income Tax		1,761,765		1,488,179		1,236,152
Profit for the Period		1,387,095		1,145,937		947,831
Profit for the Period Attributable to Owners of the Parent Company		1,250,155		1,093,611		912,400
Profit for the Period Attributable to Non-controlling<br>Interests		136,940		52,326		35,431
Basic Earnings Per Share (Won)		5,780		4,954		4,118
Diluted Earnings Per Share (Won)		5,765		4,950		4,116
Total Number of Consolidated Subsidiaries		21		25		25
B.	Summary Financial Information (Separate)
---	---

Below is the summary separate financial information of the Company as of December 31, 2024, 2023 and 2022 and for the years ended December 31, 2024, 2023 and 2022. The Company’s separate financial statements as of December 31, 2024 and 2023 and for the years ended December 31, 2024 and 2023 which are prepared in accordance with K-IFRS, are attached hereto.

	(Unit: in millions of Won)
	As of December 31,2024			As of December 31,2023			As of December 31,2022
Assets
Current Assets		5,242,405			4,703,844			5,498,460
• Cash and Cash Equivalents		1,165,158			631,066			1,217,504
• Accounts Receivable – Trade, net		1,508,893			1,495,617			1,425,695
• Accounts Receivable – Other, net		390,243			343,036			435,096
• Others		2,178,111			2,234,125			2,420,165
Non-Current Assets		19,343,221			20,292,088			20,933,661
• Long-Term Investment Securities		1,418,465			1,426,290			1,155,188
• Investments in Subsidiaries and Associates		4,899,558			4,670,568			4,621,807
• Property and Equipment, net		8,515,225			9,076,459			9,519,663
• Goodwill		1,306,236			1,306,236			1,306,236
• Intangible Assets, net		1,683,018			2,250,829			2,693,400
• Others		1,520,719			1,561,706			1,637,367
Total Assets		24,585,626			24,995,932			26,432,121
Liabilities
Current Liabilities		6,240,886			5,505,470			6,236,135
Non-Current Liabilities		7,383,886			9,054,369			9,812,604
Total Liabilities		13,624,772			14,559,839			16,048,739
Equity
Share Capital		30,493			30,493			30,493
Capital Surplus (Deficit) and Other Capital Adjustments		(4,551,820	)		(4,766,147	)		(4,506,693	)
Retained Earnings		15,273,451			15,032,473			14,691,461
Reserves		208,730			139,274			168,121
Total Equity		10,960,854			10,436,093			10,383,382
Total Liabilities and Equity		24,585,626			24,995,932			26,432,121
	(Unit: in millions of Won)
	For the year endedDecember 31, 2024			For the year endedDecember 31, 2023			For the year endedDecember 31, 2022
Operating Revenue		12,774,060			12,589,220			12,414,588
Operating Profit		1,523,175			1,455,870			1,321,131
Profit Before Income Tax		1,477,084			1,354,939			1,146,250
Profit for the Period		1,280,484			1,059,750			869,490
Basic Earnings Per Share (Won)		5,923			4,798			3,921
Diluted Earnings Per Share (Won)		5,907			4,794			3,919

2. Dividends and Others

A.	Dividend Policy

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

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

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

In April 2024, the Company disclosed its shareholder return policy for fiscal years 2024 through 2026, under which the total amount of shareholder return for each year is expected to be at least 50% of the adjusted profit for the year on a consolidated basis. Shareholder returns are expected to be provided in the form of cash dividend distribution and/or through acquisition and cancellation of the Company’s treasury shares. The Board of Directors will make its determinations on dividends in accordance with such policy.

The Company has engaged in repurchases and cancelations of its own shares from time to time to enhance its enterprise value in consideration of the market price of the Company’s shares and its financial resources. From 2020 to 2021, the Company purchased approximately Won 500 billion of treasury shares, and in May 2021, the Company canceled 8,685,568 units of previously acquired treasury shares (10.76% of the total number of shares issued at the time) to enhance shareholder value. In addition, in 2023, the Company purchased approximately Won 300 billion of treasury shares, and in February 2024, the Company canceled 4,043,091 units of treasury share (1.85% of the total number of shares issued at the time).

B.	Matters related to Provision of Dividend Predictability

(1) Dividend Improvement Procedures in the Articles of Incorporation

Classification	Status and plans
Authority for deciding dividend amounts	Under the Company’s Articles of Incorporation, annual dividends are decided at the General Meeting of Shareholders, while quarterly dividends are decided by the Board of Directors.
Whether it is possible to set the dividend record date after the dividend amount is determined	Following the amendments to the Company’s Articles of Incorporation at the 40th General Meeting of Shareholders on March 26, 2024, the Company’s dividend policy was improved by allowing the dividend record date to<br>be set after determination of the dividend amount.
Plans for implementing dividend improvement procedures	The Company plans to further improve its dividend policy by further amending the Articles of Incorporation at the 41st General Meeting of Shareholders, which was held on March 26, 2025.

(2) Status of Dividend Amount Determination Date and Dividend Record Date

Classification	Fiscal month	Dividendstatus	Dividend amountdetermination date	Dividend record date	Provision ofdividendpredictability	Note
Annual dividend for the year ended December 31, 2024	December 2024	Declared	March 26, 2025	February 28, 2025	Provided	Quarterly<br>dividend
Annual dividend for the year ended December 31, 2023	December 2023	Declared	March 26, 2024	December 31, 2023	Not provided	Quarterly<br>dividend
Annual dividend for the year ended December 31, 2022	December 2022	Declared	March 28, 2023	December 31, 2022	Not provided	Quarterly<br>dividend

The Company pays quarterly dividends. The dividend amount determination date and the dividend record date for quarterly dividends are as follows:

Classification	Fiscal month	Dividendstatus	Dividend amountdetermination date	Dividend recorddate	Provision ofdividendpredictability	Note
Quarterly dividend for the year ended December 31, 2024	December 2024	Declared	October 24, 2024	September 30,<br>2024	Not provided	Dividend for the<br>third quarter
Quarterly dividend for the year ended December 31, 2024	December 2024	Declared	July 25, 2024	June 30, 2024	Not provided	Dividend for the<br>second quarter
Quarterly dividend for the year ended December 31, 2024	December 2024	Declared	April 25, 2024	March 31,<br>2024	Not provided	Dividend for the<br>first quarter
Quarterly dividend for the year ended December 31, 2023	December 2023	Declared	October 25, 2023	September 30,<br>2023	Not provided	Dividend for the<br>third quarter
Quarterly dividend for the year ended December 31, 2023	December 2023	Declared	July 26, 2023	June 30, 2023	Not provided	Dividend for the<br>second quarter
Quarterly dividend for the year ended December 31, 2023	December 2023	Declared	April 20, 2023	March 31,<br>2023	Not provided	Dividend for the<br>first quarter
Quarterly dividend for the year ended December 31, 2022	December 2022	Declared	October 27, 2022	September 30,<br>2022	Not provided	Dividend for the<br>third quarter
Quarterly dividend for the year ended December 31, 2022	December 2022	Declared	July 28, 2022	June 30, 2022	Not provided	Dividend for the<br>second quarter
Quarterly dividend for the year ended December 31, 2022	December 2022	Declared	April 28, 2022	March 31,<br>2022	Not provided	Dividend for the<br>first quarter
C.	Dividends for the Past Three Fiscal Years
---	---
		(Unit: in millions of Won, except per share data and percentages)
---	---	---	---	---	---	---	---
Classification		As of and for the year endedDecember 31, 2024		As of and for the year endedDecember 31, 2023		As of and for the year endedDecember 31, 2022
Par value per share (Won)			100		100		100
(Consolidated) Net income			1,250,155		1,093,611		912,400
(Separate) Net income			1,280,484		1,059,750		869,490
Net income per share (Won)			5,780		4,954		4,118
Total cash dividend			753,613		765,618		723,843
Total stock dividends			—		—		—
(Consolidated)<br><br><br>Percentage of cash dividend to available income (%)			60.3		70.0		79.3
Cash dividend yield ratio (%)	Common shares		6.1		7.0		5.7
	Preferred shares		—		—		—
Stock dividend yield ratio (%)	Common shares		—		—		—
	Preferred shares		—		—		—
Cash dividend per share (Won)	Common shares		3,540		3,320		3,295
	Preferred shares		—		—		—
Stock dividend per share (share)	Common shares		—		—		—
	Preferred shares		—		—		—
*	The total amount of cash dividends was calculated by adding the total amount of cash dividends resolved at the<br>general meeting of shareholders for the relevant fiscal year and any quarterly cash dividends paid during such fiscal year in accordance with applicable disclosure requirements.
---	---
**	Consolidated net income is based on equity attributable to owners of the parent company.
---	---
***	Cash dividend for the year ended December 31, 2022 includes quarterly dividends of Won 830 per share<br>declared for the first, second, third and fourth quarters of 2022.
---	---
****	Cash dividend for the year ended December 31, 2023 includes quarterly dividends of Won 830 per share<br>declared for the first, second and third quarters of 2023, and quarterly dividend of Won 1,050 per share declared for the fourth quarter of 2023.
---	---
*****	Cash dividend for the year ended December 31, 2024 includes quarterly dividends of Won 830 per share<br>declared for the first, second and third quarters of 2024, and quarterly dividend of Won 1,050 per share declared for the fourth quarter of 2024.
---	---
******	The cash dividend yield ratio for the year ended December 31, 2024 was calculated based on the annual<br>dividend record date of February 28, 2025.
---	---

(1)	Distribution of cash dividends of Won 9,000 per share (exclusive of an interim dividend of Won 1,000 per share)<br>was approved during the 37th General Meeting of Shareholders held on March 25, 2021.
(2)	Distribution of quarterly dividends of Won 2,500 per share was approved during the 453rd^^Board of Directors’ Meeting on July 22, 2021.
---	---
(3)	Distribution of quarterly dividends of Won 2,500 per share was approved during the 458th^^Board of Directors’ Meeting on November 1, 2021.
---	---
(4)	Distribution of cash dividends of Won 1,660 per share (after reflecting the effects of the Stock Split and the Spin-off and excluding the quarterly dividends distributed in 2021) was approved during the 38th General Meeting of Shareholders on March 25, 2022.
---	---
(5)	Distribution of quarterly dividends of Won 830 per share was approved during the 466th^^Board of Directors’ Meeting on April 28, 2022.
---	---
(6)	Distribution of quarterly dividends of Won 830 per share was approved during the 469th^^Board of Directors’ Meeting on July 28, 2022.
---	---
(7)	Distribution of quarterly dividends of Won 830 per share was approved during the 471st^^Board of Directors’ Meeting on October 27, 2022.
---	---
(8)	Distribution of cash dividends of Won 830 per share was approved during the 39th General Meeting of<br>Shareholders on March 28, 2023.
---	---
(9)	Distribution of quarterly dividends of Won 830 per share was approved during the 477th^^Board of Directors’ Meeting on April 20, 2023.
---	---
(10)	Distribution of quarterly dividends of Won 830 per share was approved during the 479th^^Board of Directors’ Meeting on July 26, 2023.
---	---
(11)	Distribution of quarterly dividends of Won 830 per share was approved during the 481st^^Board of Directors’ Meeting on October 25, 2023.
---	---
(12)	Distribution of cash dividends of Won 1,050 per share was approved during the 40th General Meeting of<br>Shareholders on March 26, 2024.
---	---
(13)	Distribution of quarterly dividends of Won 830 per share was approved during the 491st Board of Directors’<br>Meeting on April 25, 2024.
---	---
(14)	Distribution of quarterly dividends of Won 830 per share was approved during the 495th Board of Directors’<br>Meeting on July 25, 2024.
---	---
(15)	Distribution of quarterly dividends of Won 830 per share was approved during the 498th Board of Directors’<br>Meeting on October 24, 2024.
---	---
(16)	Distribution of cash dividends of Won 1,050 per share was included in the agenda for the 41st General Meeting<br>of Shareholders, which was held on March 26, 2025.
---	---
D.	Past Distributions of Dividends
---	---
Number of consecutive dividends		Average dividend yield (%)
---	---	---	---
Quarterly (or interim) dividends	Annual dividends	Past three years	Past five years
28	31	6.7	6.0

3. Use of Direct Financing

A.	Use of Proceeds from Public Offerings

[SK Telecom]

(As of December 31,<br>2024)	(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 82-1,2,3	April 12, 2022	Repayment of debt	350,000	Repayment of debt	350,000		—
Corporate bond	Series 83-1	August 10, 2022	Repayment of debt	300,000	Repayment of debt	300,000		—
Corporate bond (ESG bond)	Series 83-2	August 10, 2022	Other (fund investment, etc.)	95,000	Other (investment in funds, etc.)	95,000		—
Corporate bond	Series 84-1,2,3,4	December 14, 2022	Repayment of debt	310,000	Repayment of debt	310,000		—
Corporate bond	Series 85-1,2	February 17, 2023	Repayment of debt	300,000	Repayment of debt	300,000		—
Corporate bond	Series 86-1,2,3	April 12, 2023	Repayment of debt	350,000	Repayment of debt	350,000		—
Hybrid securities	Series 3	June 5, 2023	Repayment of debt	400,000	Repayment of debt	400,000		—
Corporate bond	Series 87-1,2,3,4	October 18, 2023	Repayment of debt	295,000	Repayment of debt	295,000		—
Corporate bond	Series 88-1,2,3	February 22, 2024	Repayment of debt	400,000	Repayment of debt	400,000		—
Corporate bond	Series 89-1,2,3	December 11, 2024	Repayment of debt	300,000	Repayment of debt	300,000		—
*	Series 83-2 issued as of August 10, 2022 is an ESG bond. Series 83-2 was issued in furtherance of the Company’s ESG goal to achieve Net Zero by 2050, and covers solar energy generation equipment in the environment sector, mutual growth funds in the social sector and the SK<br>Telecom-Kakao ESG Fund. The proceeds from the bond offering were intended to refinance prior investments and new investments, and were used for the intended purpose.
---	---

[SK Broadband]

(As of December 31, 2024)	(Unit: in millions of Won)
Category	Bond Series	Payment Date	Planned Use of Proceeds		Actual Use of Proceeds		ReasonsforDifference
			Use	Amount	Use	Amount
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		—
Corporate bond	Series 53-1	March 2, 2023	Operation fund	5,000	Operation fund	5,000		—
Corporate bond	Series 53-1	March 2, 2023	Repayment of debt	45,000	Repayment of debt	45,000		—
Corporate bond	Series 53-2	March 2, 2023	Operation fund	55,000	Operation fund	55,000		—
Corporate bond	Series 53-2	March 2, 2023	Repayment of debt	45,000	Repayment of debt	45,000		—
Corporate bond	Series 53-3	March 2, 2023	Operation fund	46,900	Operation fund	46,900		—
Corporate bond	Series 53-3	March 2, 2023	Repayment of debt	43,100	Repayment of debt	43,100		—
Corporate bond	Series 54-1	October 30, 2023	Facility fund	100,000	Facility fund	100,000		—
Corporate bond	Series 54-2	October 30, 2023	Facility fund	60,000	Facility fund	60,000		—
Corporate bond	Series 55-1	January 22, 2024	Repayment of debt	170,000	Repayment of debt	170,000		—
Corporate bond	Series 55-2	January 22, 2024	Repayment of debt	60,000	Repayment of debt	60,000		—
Corporate bond	Series 56-1	December 4, 2024	Repayment of debt<br> <br>Facility fund	100,000<br> <br>30,000	Repayment of debt<br> <br>Facility fund	— <br> <br>30,000		—
Corporate bond	Series 56-2	December 4, 2024	Repayment of debt<br> <br>Facility fund	50,000<br> <br>65,000	Repayment of debt<br> <br>Facility fund	— <br> <br>65,000		—
Corporate bond	Series 56-3	December 4, 2024	Repayment of debt<br> <br>Facility fund	30,000<br> <br>20,000	Repayment of debt<br> <br>Facility fund	30,000<br> <br>20,000		—
*	Series 52-2 issued as of January 25, 2022 is an ESG bond (green<br>bond). Series 52-2 was issued in furtherance of “2050 Net Zero Initiative (Carbon Emissions Reduction),” which is one of the Company’s ESG goals for the purpose of repayment of funds raised to<br>be invested in the conversion of hybrid fiber-coaxial network to fiber-to-the-home network, which has a positive impact on the<br>environment, including the reduction of greenhouse gas emissions. The proceeds from the bond offering were used for the intended purpose.
---	---

4. Other Matters Related to Financial Information

A.	Restatement of the Financial Statements

Not applicable.

B.	Loss Allowance

(1) Loss Allowance of Trade and Other Receivables

	(Unit: in millions of Won, except percentages)
	For the year ended December 31, 2024
	Gross amount		Loss Allowance		Percentage
Accounts receivable – trade		2,258,412		258,030		11.4	%
Loans		141,609		41,958		29.6	%
Accounts receivable – other		568,072		25,628		4.5	%
Accrued income		4,242		—		—
Guarantee deposits		275,450		—		—
Total		3,247,785		325,616		10.0	%
	(Unit: in millions of Won, except percentages)
---	---	---	---	---	---	---	---
	For the year ended December 31, 2023
	Gross amount		Loss Allowance		Percentage
Accounts receivable – trade		2,233,586		242,737		10.9	%
Loans		150,671		42,087		27.9	%
Accounts receivable – other		690,157		33,276		4.8	%
Accrued income		4,295		—		—
Guarantee deposits		286,520		300		0.1	%
Total		3,365,229		318,400		9.5	%

	(Unit: in millions of Won, except percentages)
	For the year ended December 31, 2022
	Gross amount		Loss Allowance		Percentage
Accounts receivable – trade		2,219,695		234,923		10.6	%
Loans		151,155		45,592		30.2	%
Accounts receivable – other		897,920		44,188		4.9	%
Accrued income		1,732		—		—
Guarantee deposits		280,945		300		0.1	%
Total		3,551,447		325,003		9.2	%

(2) Movements in Loss Allowance of Trade and Other Receivables

	(Unit: in millions of Won)
	For the year ended<br>December 31, 2024			For the year ended<br>December 31, 2023			For the year ended<br>December 31, 2022
Beginning balance		318,401			325,003			330,891
Effect of change in accounting policy		—			—			—
Increase of loss allowance		54,703			43,162			30,064
Reversal of loss allowance		—			—			—
Write-offs		(44,556	)		(49,764	)		(35,955	)
Other		(2,933	)		—			3
Ending balance		325,615			318,400			325,003

(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, except percentages)
	As of December 31, 2024
	Six months orless			From sixmonths to oneyear			From one yearto three years			More thanthree years			Total
Accounts receivable – general		2,007,911			54,621			155,715			40,166			2,258,413
Percentage		88.9	%		2.4	%		6.9	%		1.8	%		100.0	%
C.	Inventories
---	---

(1) Detailed Categories of Inventories

	(Unit: in millions of Won, except percentages)
Account Category	For the year endedDecember 31, 2024		For the year endedDecember 31, 2023		For the year endedDecember 31, 2022
Merchandise		183,202		166,614		151,303
Goods in transit		—		—		—
Other inventories		26,581		13,195		15,052
Total		209,783		179,809		166,355

	(Unit: in millions of Won, except percentages)
Account Category	For the year endedDecember 31, 2024			For the year endedDecember 31, 2023			For the year endedDecember 31, 2022
Percentage of inventories to total assets<br><br><br>[Inventories / Total assets]		0.69	%		0.60	%		0.53	%
Inventory turnover<br><br><br>[Cost of sales / { ( Beginning balance of<br>inventories + Ending balance of<br>inventories ) / 2}]		6.73			7.32			6.84

(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, 21 and 35 of the notes to the Company’s audited consolidated financial statements attached hereto 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(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	—
	Compliance Status	—
Submission of Compliance Certificate	Compliance Status	Submitted on August 21, 2024
Name	Issue Date	Maturity Date	Principal Amount(millions of Won)		Date of Fiscal<br><br><br>Agency<br><br><br>Agreement	Fiscal Agent
---	---	---	---	---	---	---
Unsecured Bond – Series 63-2	Apr. 23, 2013	Apr. 23, 2033		130,000	Apr. 17, 2013	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	—
	Compliance Status	—
Submission of Compliance Certificate	Compliance Status	Submitted on August 21, 2024
Name	Issue Date	Maturity Date	Principal Amount(millions of Won)		Date of Fiscal<br><br><br>Agency<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	—
	Compliance Status	—
Submission of Compliance Certificate	Compliance Status	Submitted on August 21, 2024
Name	Issue Date	Maturity Date	Principal Amount(millions of Won)		Date of Fiscal<br><br><br>Agency<br><br><br>Agreement	Fiscal Agent
---	---	---	---	---	---	---
Unsecured Bond – Series 72-3	Nov. 10, 2017	Nov. 10, 2027		100,000	Oct. 31, 2017	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 74-3	Sept. 17, 2018	Sept. 17, 2038		50,000	Sept. 5, 2018	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	Exclusion from corporate group subject to restriction against cross-shareholding
	Compliance Status	Compliant
Submission of Compliance Certificate	Compliance Status	Submitted on August 21, 2024
Name	Issue Date	Maturity Date	Principal Amount(millions of Won)		Date of Fiscal<br><br><br>Agency<br><br><br>Agreement	Fiscal Agent
---	---	---	---	---	---	---
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	Exclusion from corporate group subject to restriction against cross-shareholding
	Compliance Status	Compliant
Submission of Compliance Certificate	Compliance Status	Submitted on August 21, 2024
Name	Issue Date	Maturity Date	Principal Amount(millions of Won)		Date of Fiscal<br><br><br>Agency<br><br><br>Agreement	Fiscal Agent
---	---	---	---	---	---	---
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	Exclusion from corporate group subject to restriction against cross-shareholding
	Compliance Status	Compliant
Submission of Compliance Certificate	Compliance Status	Submitted on August 21, 2024
Name	Issue Date	Maturity Date	Principal Amount(millions of Won)		Date of Fiscal<br><br><br>Agency<br><br><br>Agreement	Fiscal Agent
---	---	---	---	---	---	---
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	Exclusion from corporate group subject to restriction against cross-shareholding
	Compliance Status	Compliant
Submission of Compliance Certificate	Compliance Status	Submitted on August 21, 2024
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	Exclusion from corporate group subject to restriction against cross-shareholding
	Compliance Status	Compliant
Submission of Compliance Certificate	Compliance Status	Submitted on August 21, 2024
Name	Issue Date	Maturity Date	Principal Amount(millions of Won)		Date of FiscalAgencyAgreement	Fiscal Agent
---	---	---	---	---	---	---
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	Exclusion from corporate group subject to restriction against cross-shareholding
	Compliance Status	Compliant
Submission of Compliance Certificate	Compliance Status	Submitted on August 21, 2024

Name	Issue Date	Maturity Date	Principal Amount(millions of Won)		Date of FiscalAgencyAgreement	Fiscal Agent
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.
Unsecured Bond – Series 82-1	Apr. 12, 2022	Apr. 12, 2025		240,000	Mar. 31, 2022	Korea Securities Finance Corp.
Unsecured Bond – Series 82-2	Apr. 12, 2022	Apr. 12, 2027		70,000	Mar. 31, 2022	Korea Securities Finance Corp.
Unsecured Bond – Series 82-3	Apr. 12, 2022	Apr. 12, 2042		40,000	Mar. 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	Exclusion from corporate group subject to restriction against cross-shareholding
	Compliance Status	Compliant
Submission of Compliance Certificate	Compliance Status	Submitted on August 21, 2024
Name	Issue Date	Maturity Date	Principal Amount(millions of Won)		Date of FiscalAgencyAgreement	Fiscal Agent
---	---	---	---	---	---	---
Unsecured Bond – Series 83-1	Aug. 10, 2022	Aug. 8, 2025		300,000	July 29, 2022	Korea Securities Finance Corp.
Unsecured Bond – Series 83-2	Aug. 10, 2022	Aug. 10, 2027		95,000	July 29, 2022	Korea Securities Finance Corp.
Unsecured Bond – Series 84-2	Dec. 14, 2022	Dec. 12, 2025		110,000	Dec. 2, 2022	Korea Securities Finance Corp.
Unsecured Bond – Series 84-3	Dec. 14, 2022	Dec. 14, 2027		60,000	Dec. 2, 2022	Korea Securities Finance Corp.
Unsecured Bond – Series 84-4	Dec. 14, 2022	Dec. 14, 2032		40,000	Dec. 2, 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	Exclusion from corporate group subject to restriction against cross-shareholding
	Compliance Status	Compliant
Submission of Compliance Certificate	Compliance Status	Submitted on August 21, 2024
Name	Issue Date	Maturity Date	Principal Amount(millions of Won)		Date of FiscalAgencyAgreement	Fiscal Agent
---	---	---	---	---	---	---
Unsecured Bond – Series 85-1	Feb. 17, 2023	Feb. 17, 2026		110,000	Feb. 7, 2023	Korea Securities Finance Corp.
Unsecured Bond – Series 85-2	Feb. 17, 2023	Feb. 17, 2028		190,000	Feb. 7, 2023	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	Exclusion from corporate group subject to restriction against cross-shareholding
	Compliance Status	Compliant
Submission of Compliance Certificate	Compliance Status	Submitted on August 21, 2024
Name	Issue Date	Maturity Date	Principal Amount(millions of Won)		Date of FiscalAgencyAgreement	Fiscal Agent
---	---	---	---	---	---	---
Unsecured Bond – Series 86-1	Apr. 12, 2023	Apr. 10, 2026		80,000	Mar. 31, 2023	Korea Securities Finance Corp.
Unsecured Bond – Series 86-2	Apr. 12, 2023	Apr. 12, 2028		200,000	Mar. 31, 2023	Korea Securities Finance Corp.
Unsecured Bond – Series 86-3	Apr. 12, 2023	Apr. 12, 2030		70,000	Mar. 31, 2023	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	Exclusion from corporate group subject to restriction against cross-shareholding
	Compliance Status	Compliant
Submission of Compliance Certificate	Compliance Status	Submitted on August 21, 2024
Name	Issue Date	Maturity Date	Principal Amount(millions of Won)		Date of FiscalAgencyAgreement	Fiscal Agent
---	---	---	---	---	---	---
Hybrid Securities Series 3	June 5, 2023	June 5, 2083		400,000	May 23, 2023	Eugene Investment & Securities Co., Ltd.
Maintenance of Financial Ratio	Key Term	Not Applicable
---	---	---
	Compliance Status	Compliant
Restriction on Liens	Key Term	Not Applicable
	Compliance Status	Compliant
Restriction on Disposition of Assets	Key Term	Not Applicable
	Compliance Status	Compliant
Restriction on Changes of Ownership Structure	Key Term	Not Applicable
	Compliance Status	Compliant
Submission of Compliance Certificate	Compliance Status	Submitted on August 21, 2024
Name	Issue Date	Maturity Date	Principal Amount(millions of Won)		Date of FiscalAgencyAgreement	Fiscal Agent
---	---	---	---	---	---	---
Unsecured Bond – Series 87-1	Oct. 18, 2023	Oct. 16, 2026		115,000	Oct. 5, 2023	Korea Securities Finance Corp.
Unsecured Bond – Series 87-2	Oct. 18, 2023	Oct. 18, 2028		100,000	Oct. 5, 2023	Korea Securities Finance Corp.
Unsecured Bond – Series 87-3	Oct. 18, 2023	Oct. 18, 2030		50,000	Oct. 5, 2023	Korea Securities Finance Corp.
Unsecured Bond – Series 87-4	Oct. 18, 2023	Oct. 18, 2033		30,000	Oct. 5, 2023	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	Exclusion from corporate group subject to restriction against cross-shareholding
	Compliance Status	Compliant
Submission of Compliance Certificate	Compliance Status	Submitted on August 21, 2024
Name	Issue Date	Maturity Date	Principal Amount(millions of Won)		Date of FiscalAgencyAgreement	Fiscal Agent
---	---	---	---	---	---	---
Unsecured Bond – Series 88-1	Feb. 22, 2024	Feb. 22, 2027		180,000	Feb. 8, 2024	Korea Securities Finance Corp.
Unsecured Bond – Series 88-2	Feb. 22, 2024	Feb. 22, 2029		110,000	Feb. 8, 2024	Korea Securities Finance Corp.
Unsecured Bond – Series 88-3	Feb. 22, 2024	Feb. 22, 2034		110,000	Feb. 8, 2024	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	Exclusion from corporate group subject to restriction against cross-shareholding
	Compliance Status	Compliant
Submission of Compliance Certificate	Compliance Status	Submitted on August 21, 2024
Name	Issue Date	Maturity Date	Principal Amount(millions of Won)		Date of FiscalAgencyAgreement	Fiscal Agent
---	---	---	---	---	---	---
Unsecured Bond – Series 89-1	Dec. 11, 2024	Dec. 10, 2027		170,000	Nov. 29, 2024	Korea Securities Finance Corp.
Unsecured Bond – Series 89-2	Dec. 11, 2024	Dec. 11, 2029		90,000	Nov. 29, 2024	Korea Securities Finance Corp.
Unsecured Bond – Series 89-3	Dec. 11, 2024	Dec. 11, 2034		40,000	Nov. 29, 2024	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	Exclusion from corporate group subject to restriction against cross-shareholding
	Compliance Status	Compliant
Submission of Compliance Certificate	Compliance Status	To be submitted following the filing of this 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)		Date of FiscalAgencyAgreement	Fiscal Agent
Unsecured Bond – Series 48-3	Sept. 24, 2019	Sept. 23, 2026		50,000	Sept. 10, 2019	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 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.
Unsecured Bond – Series 53-1	Mar. 2, 2023	Feb. 28, 2025		50,000	Feb. 17, 2023	Korea Securities Finance Corp.
Unsecured Bond – Series 53-2	Mar. 2, 2023	Feb. 27, 2026		100,000	Feb. 17, 2023	Korea Securities Finance Corp.
Unsecured Bond – Series 53-3	Mar. 2, 2023	Mar. 2, 2028		90,000	Feb. 17, 2023	Korea Securities Finance Corp.
Unsecured Bond – Series 54-1	Oct. 30, 2023	Oct. 30, 2026		100,000	Oct. 18, 2023	Korea Securities Finance Corp.
Unsecured Bond – Series 54-2	Oct. 30, 2023	Oct. 30, 2028		60,000	Oct. 18, 2023	Korea Securities Finance Corp.
Unsecured Bond – Series 55-1	Jan. 22, 2024	Jan. 22, 2027		170,000	Jan. 10, 2024	Korea Securities Finance Corp.
Unsecured Bond – Series 55-2	Jan. 22, 2024	Jan. 22, 2029		60,000	Jan. 10, 2024	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	Restriction on changes of ownership structure
	Compliance Status	Compliant
Submission of Compliance Certificate	Compliance Status	Submitted on September 12, 2024
Name	Issue Date	Maturity Date	Principal Amount(millions of Won)		Date of FiscalAgencyAgreement	Fiscal Agent
---	---	---	---	---	---	---
Unsecured Bond – Series 56-1	Dec. 4, 2024	Dec. 3, 2027		130,000	Sept. 10, 2019	Korea Securities Finance Corp.
Unsecured Bond – Series 56-2	Dec. 4, 2024	Dec. 4, 2029		115,000	June 1, 2020	Korea Securities Finance Corp.
Unsecured Bond – Series 56-2	Dec. 4, 2024	Dec. 4, 2031		50,000	Sept. 15, 2020	Korea Securities Finance Corp.

Maintenance of Financial Ratio	Key Term	Debt ratio no greater than 400%
	Compliance Status	—
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	—
Restriction on Disposition of Assets	Key Term	Disposal of assets per fiscal year not to exceed 70% of total assets
	Compliance Status	—
Restriction on Changes of Ownership Structure	Key Term	Restriction on changes of ownership structure
	Compliance Status	—
Submission of Compliance Certificate	Compliance Status	To be submitted following the filing of this annual business report
IV.	MANAGEMENT’S DISCUSSION AND ANALYSIS
---	---

1. Forward-Looking Statements

This section contains forward-looking statements with respect to the financial condition, results of operations and business of the Company and plans and objectives of the management of the Company. Forward-looking statements are not statements of historical facts and include statements about the Company’s beliefs and expectations. Such forward-looking statements include known and unknown risks, uncertainties and other factors which may cause the actual results or performance of the Company to be materially different from any future results or performance expressed or implied by such forward-looking statements.

The Company does not make any representation or warranty, expressed or implied, as to the accuracy or completeness of the information contained in this section, and nothing contained herein is, or shall be relied upon as, a promise or representation, whether as to the past or the future. Such forward-looking statements were based on current plans, estimates and projections of the Company and the political and economic environment in which the Company will operate in the future, and therefore you should not place undue reliance on them.

Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update publicly any of them in light of new information or future events.

2. Overview

A.	Summary of Business Performance

In 2024, the prevailing high interest and high inflation rates constrained private consumption, leading to a continued challenging business environment for the Company. Under such circumstances, the Company has set forth its vision to transform into an “AI company,” and systemized its businesses into three key aspects of AI infrastructure, AI transformation and AI service. The Company has redefined its core business areas to include AI and has been focusing its capabilities in maximizing enterprise value by enhancing its AI technology and service capabilities.

The Company’s revenue increased by 1.9% from 2023 to Won 17.94 trillion in 2024 by leveraging a solid base of wireless and fixed-line telecommunications subscribers and growth in the B2B business. In addition, as a result of the Company’s efforts to achieve fundamental structural improvements beyond mere cost reductions, the Company’s operating profit increased by 4% from 2023 to Won 1.82 trillion in 2024. The Company’s operating profit margin exceeded 10%.

The Company’s 5G wireless services, which recorded over 16.92 million subscribers as of December 31, 2024, accounted for more than 74% of the Company’s total number of subscribers. The Company also maintained the growth of its paid television subscribers at 9.60 million subscribers and high-speed Internet subscribers at 7.16 million subscribers, in each case as of December 31, 2024.

The Company’s assets as of December 31, 2024 increased compared to the end of the previous year mainly due to an increase in cash and cash equivalents. Liabilities as of December 31, 2024 increased compared to the end of the previous year mainly due to an increase in current liabilities including accounts payable – trade, which was partially offset by a decrease in debentures.

In 2024, the Company strengthened its global AI partnerships through equity investments across various AI-related sectors. The Company made strategic investments in companies with strong capabilities in AI data centers and has been closely collaborating with leading global AI technology companies engaged in the AI agent and large-language model for telecommunications companies businesses.

Although the growth in the size of the Company’s telecommunications business may slow down as the 5G market enters its maturation stage, the Company aims to maintain its competitiveness by providing differentiated products and services to users. In addition, B2B businesses including data centers and cloud services have become the Company’s key sources of revenue. In 2025, the Company plans to demonstrate tangible growth in AI-related revenue through its efforts to advance the commercialization of its AI-related businesses.

B.	Key Indicators of Consolidated Business Performance

[SK Telecom]

	(Unit: in billions of Won, except percentages)
	For the year endedDecember 31, 2024		For the year endedDecember 31, 2023		Percentage Changefrom 2023 to 2024
Operating Revenue		17,940.6		17,608.5		1.9	%
Operating Profit		1,823.4		1,753.2		4.0	%
Operating Profit Margin (%)		10.2		10.0		0.2	%p
EBITDA		5,518.1		5,502.9		0.3	%
EBITDA Margin (%)		30.8		31.3		0.5	%p
C.	Analysis of Change in Key Indicators
---	---

The Company’s revenue increased in 2024 mainly due to stable growths in wireless and fixed-line telecommunications revenues, as well as continued growth of its B2B businesses including data centers, resulting in a 1.9% increase compared to 2023.

The Company’s operating profit increased by 4.0% in 2024 compared to 2023 mainly due to the increase in revenue and stabilization of key expenses through company-wide organizational improvements.

3. Analysis of Consolidated Financial Position

A.	Analysis of Financial Position

(1) Analysis of Consolidated Financial Position

	(Unit: in billions of Won, except percentages)
	As of December 31,2024		As of December 31,2023		As of December 31,2022
Current Assets		7,477		6,586		7,219
Non-Current Assets		23,039		23,534		24,089
Total Assets		30,515		30,119		31,308
Current Liabilities		9,224		6,994		8,047
Non-current Liabilities		9,463		10,897		11,107
Total Liabilities		18,688		17,891		19,153
Total Equity		11,828		12,228		12,155

The Company’s total assets as of December 31, 2024 increased compared to the end of the previous year, primarily as a result of an increase in cash and cash equivalents.

The Company’s total liabilities as of December 31, 2024 increased compared to the end of the previous year, primarily due to an increase in current liabilities including accounts payable – trade, which was partially offset by a decrease in debentures.

B.	Analysis of Results of Operations

(1) Consolidated Results of Operations

	(Unit: in billions of Won, except percentages)
	For the year endedDecember 31, 2024		For the year endedDecember 31, 2023		For the year endedDecember 31, 2022
Operating Revenue		17,941		17,609		17,305
Operating Expense		16,117		15,855		15,693
Operating Profit		1,823		1,753		1,612
Profit for the Year		1,387		1,146		948

The Company’s revenue in 2024 increased by 1.9% compared to 2023 mainly due to increases in wireless and fixed-line telecommunications revenues, as well as growth in B2B businesses including data centers.

The Company’s operating profit in 2024 increased by 4.0% compared to 2023 mainly due to stabilization of key costs through company-wide organizational improvements, as well as an increase in revenue.

(2) Operating performance by business

Each company in the consolidated entity is a separate legal entity providing independent services and products. The Company’s business segments consist of (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 in 2024.

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
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
	SK m&service Co., Ltd.	Database and online information services
	SAPEON Inc.	Non-memory and other electronic integrated circuits
	Astra AI Infra LLC	Investments
	SK Telecom Americas, Inc.	Information collection and consulting services
	Global AI Platform Corporation	Software development and supply business

The Company’s wireless business, fixed-line business and other businesses accounted for 74%, 23% and 3%, respectively, of the Company’s operating revenue in 2024. The following table shows the breakdown of the Company’s operating revenue by business segment:

	(Unit: in millions of Won and percentages)
	For the year ended December 31,
	2024					2023					2022
Classification	Amount		Ratio			Amount		Ratio			Amount		Ratio
Wireless		13,318,213		74	%		13,123,166		75	%		12,942,316		75	%
Fixed-line		4,075,412		23	%		3,928,020		22	%		3,812,989		22	%
Other		546,984		3	%		557,325		3	%		549,668		3	%
Total		17,940,609		100	%		17,608,511		100	%		17,304,973		100	%

(a) Wireless Communications Business

[1] Market Conditions

Wireless communications service has the characteristics of a domestic industry because its business area is limited to Korea. As a result, the size of the industry is greatly affected by domestic market conditions, including the population using domestic telecommunications services and the level of telecommunications expenditures by income level.

[2] Analysis of Changes in Factors Affecting Results of Operations

[Number of Subscribers]

	(Unit: in 1,000 persons, except percentages)
	For the year endedDecember 31, 2024			For the year endedDecember 31, 2023			For the year endedDecember 31, 2022
Wireless Subscribers		31,786			31,276			30,452
Monthly Churn Rate (%)		0.8	%		0.9	%		0.7	%
5G Subscribers		16,917			15,500			13,393

The number of SK Telecom’s wireless subscribers recorded 31.79 million and a market share of 45.3% in 2024 primarily due to the increase in the number of IoT lines and the expansion of 5G network services.

SK Telecom recorded an annual churn rate of 0.8% in 2024, mainly reflecting its innovations in distribution channels and rational market operations.

The number of SK Telecom’s 5G subscribers recorded 16.92 million and a market share of 48.0% in 2024, as the growth in the number of 5G subscribers naturally slowed down as 5G penetration rate surpassed 74%.

•	Average Monthly Revenue per Subscriber

The billing ARPU decreased by 1.7% in 2024 compared to 2023 primarily due to an increase in the number of IoT and second device lines.

	For the year endedDecember 31, 2024		For the year endedDecember 31, 2023		For the year endedDecember 31, 2022
Billing ARPU (Won)		29,355		29,874		30,546
*	The billing ARPU is derived by dividing total revenue of SK Telecom from voice service and data service<br>(excluding revenue from MVNO subscribers) for the period by the average number of subscribers that are not MVNO subscribers for the period.
---	---
	1st Quarter of2024		2nd Quarter of2024		3rd Quarter of2024		4th Quarter of2024
---	---	---	---	---	---	---	---	---
Billing ARPU (Won)		29,239		29,298		29,389		29,495
•	Capital Expenditures (SK Telecom on a separate basis)
---	---
	(Unit: in billions of Won)
---	---	---	---	---	---	---	---
New investments and expansions	For the year endedDecember 31, 2024		For the year endedDecember 31, 2023		For the year endedDecember 31, 2022		Method offinancing
Network investment		1,259		1,381		1,837	Internal<br>Cashflow
Other investment		285		362		378
Total		1,544		1,743		2,215

In 2024, SK Telecom invested Won 1.54 trillion in network facility to primarily expand 5G service coverage, maintain network quality and invest in other new businesses.

(b) Fixed-Line Communications Business

[1] Market Conditions

The domestic telecommunications service industry is a domestic industry whose coverage area is limited to Korea, and the size of the industry is significantly affected by domestic economic factors, including the domestic user population and the level of telecommunications service expenditures by income level.

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. It is a mature market where the impact of general economic fluctuations is relatively low as the level of competition has stabilized due to a reduced degree of differentiation among players.

The price, quality and speed of services are the primary competitive factors, and in the case of IPTV business, advanced services based on new technology and content differentiation are emerging as competitive factors.

[2] Analysis of factors and impact of changes in operating revenue

[Market Share]

	(Unit: in percentages)
Operating revenue	For the year endedDecember 31, 2024		For the year endedDecember 31, 2023		For the year endedDecember 31, 2022
High-speed Internet (including SKT resale)		28.9		28.7		28.5
Local calls (including Internet calls)		18.3		18.0		17.8
IPTV		32.0		31.8		31.1
Cable TV		22.8		22.4		22.2

SK Broadband’s media business consists of paid broadcasting services based on IPTV and cable TV services. The total number of media subscribers surpassed 9.6 million in 2024 and continued to grow steadily. Revenue from IPTV services continued to grow based on an increases in the number of subscribers and the proportion of subscribers to high-priced products from whom the Company derives higher ARPU. Revenue from IPTV services increased by 1.9% from 2023 to Won 1.55 trillion in 2024, while revenue from cable TV services decreased by 3.6% from 2023 to Won 369.6 billion in 2024 due to a slight decrease in the number of subscribers.

SK Broadband’s fixed-line telecommunications business consists of high-speed Internet services, corporate business and residential telephone services. Revenue from high-speed Internet services increased by 5.2% from 2023 to Won 1.55 trillion in 2024 mainly due to an increase in the number of subscribers to premium plans such as Giga Internet. Revenue from the corporate business increased by 4.7% from 2023 to Won 1.37 trillion in 2024 due to various factors including an increase in revenue from corporate lines reflecting an increase in the number of new customers mainly due to SK Broadband’s improved competitiveness as well as increases in the scale and utilization rate of its data centers. Revenue from residential telephone services increased by 12.9% from 2023 to Won 67.2 billion in 2024.

C.	New Businesses

None.

D.	Discontinued Operations During the Reporting Period

None.

E.	Corporate Reorganization

SK Telecom has announced its AI Pyramid strategy, which aims to bring innovation across various industrial and lifestyle areas centered around three key aspects including AI infrastructure, AI transformation and AI service and to promote global expansion, and is seeking to transform into a global AI company through self-reinforcement and cooperation.

In 2024, SK Telecom reorganized its businesses into four units comprising AI Services, Global and AI Technology, T-B Customer and T-B Enterprise, in order to enhance its execution capabilities by clearly assigning responsible organizations to each strategic aspects of the AI Pyramid strategy.

In 2025, SK Telecom further reorganized its businesses into seven units in order to focus its capabilities on two core areas of telecommunications and AI. The telecommunications business comprises mobile network operations, fixed-line and media, and enterprise business units, while the AI business comprises A dot, global personal AI agent, AI transformation and AI data center business units.

F.	Effects of Exchange Rate Fluctuation

The Company has exchange positions due to its income and expenditure from global operations. Foreign currencies in which exchange positions primarily are generated are U.S. dollars and Euros.

See Note 35 of the notes to the Company’s audited consolidated financial statements attached hereto for further information regarding the company’s exchange rate risk.

G.	Asset Impairment and Write-downs

(1) Impairment assessment of goodwill in cash-generating units of fixed-line businesses

As described in Notes 3(10) and 15 of the notes to the Company’s audited consolidated financial statements attached hereto, the Company assesses impairment of goodwill allocated to a cash generating unit (“CGU”) at least annually or when there is an indication of possible impairment by comparing the carrying amount of a CGU to its recoverable amount based on value-in-use (“VIU”). The amount of goodwill allocated to the fixed-line telecommunications services CGU was Won 764.1 billion as of December 31, 2024.

(2) Impairment assessment of non-financial assets

The carrying amounts of the Company’s non-financial assets other than contract assets recognized for revenue arising from contracts with a customer, assets recognized for the costs to obtain or fulfill a contract with a customer, employee benefits, inventories, deferred tax assets and non-current assets held for sale are reviewed at the end of the reporting period to determine whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated. Goodwill and intangible assets that have indefinite useful lives or that are not yet available for use, irrespective of whether there is any indication of impairment, are tested for impairment annually by comparing their recoverable amounts to their carrying amounts.

The Company estimates the recoverable amount of an individual asset, or if it is impossible to measure the individual recoverable amount of an asset, the Company estimates the recoverable amount of a CGU. The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs to sell. The value in use is estimated by applying a discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or CGU for which estimated future cash flows have not been adjusted, to the estimated future cash flows expected to be generated by the asset or CGU.

An impairment loss is recognized in profit or loss to the extent the carrying amount of the asset exceeds its recoverable amount.

Goodwill acquired in a business combination is allocated to each CGU that is expected to benefit from the synergy arising from the business acquired. Any impairment identified at the CGU level will first reduce the carrying amount of goodwill and then be used to reduce the carrying amount of the other assets in the CGU on a pro rata basis. Except for impairment losses in respect of goodwill which are never reversed, an impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if no impairment loss had been recognized.

For more information on asset impairment, see the notes to the Company’s audited consolidated financial statements attached hereto.

H.	Annual Business Plan for 2025

The Company released the following management plan for 2025 through its earnings announcement on February 12, 2025.

(1) Guidance for Fiscal Year 2025

•	Operating revenue (consolidated): Won 17.8 trillion

4. Liquidity, Financing and Expenses

A.	Liquidity

The Company’s cashflow status is as follows:

	(Units: in millions of Won)
	For the year endedDecember 31, 2024			For the year endedDecember 31, 2023			For the year endedDecember 31, 2022
Cash flow from operating activities		5,087,285			4,947,205			5,159,317
Cash flow used by investing activities		(2,711,827	)		(3,352,905	)		(2,807,795	)
Cash flow used by financial activities		(1,809,853	)		(2,020,990	)		(1,349,882	)
Increase (decrease) in cash and cash equivalents		565,605			(426,690	)		1,001,640
Cash and cash equivalents at the beginning of the period		1,454,978			1,882,291			872,731
Effects of exchange rate fluctuations on foreign-currency denominated cash and cash<br>equivalents		26,124			(623	)		7,920
Cash and cash equivalents at the end of the period		2,023,721			1,454,978			1,882,291

The Company classifies cash and cash equivalents to comprise cash balances, call deposits and investment securities with maturities of three months or less from their acquisition dates that are easily convertible to cash and subject to an insignificant risk of changes in their fair value.

As of December 31, 2024, the Company had cash and cash equivalent of Won 2,023.7 billion.

As of December 31, 2024, the Company’s debt-to-equity ratio (as calculated by dividing the interest-bearing financial debt by total equity) was 76.8%, compared to 74.0% as of December 31, 2023 and 76.5% as of December 31, 2022. The net debt-to-equity ratio (as calculated by the interest-bearing financial debt minus cash and marketable securities, divided by total equity) was 57.1%, 59.6% and 59.1% at the end of 2024, 2023 and 2022, respectively. Interest coverage ratio (EBITDA divided by interest expense) was 13.7 times, 14.1 times and 15.9 times at the end of each of 2024, 2023 and 2022, respectively. The Company continues to have sufficient liquidity.

The Company strives to secure sufficient liquidity by maintaining a sufficient level of cash and cash equivalents and securing credit limits from financial institutions. The Company maintains sufficient liquidity within its credit limit through active business activities.

B.	Financing
(1)	Status and conditions of financing
---	---
(a)	Short-term borrowings
---	---

For information on short-term borrowings as of December 31, 2024 and 2023, see Note 17 of the notes to the Company’s audited consolidated financial statements attached hereto.

(b)	Long-term borrowings

For information on long-term borrowings as of December 31, 2024 and 2023, see Note 17 of the notes to the Company’s audited consolidated financial statements attached hereto.

(c)	Debentures

For information on debentures as of December 31, 2024 and 2023, see Note 17 of the notes to the Company’s audited consolidated financial statements attached hereto.

(2)	Maturity of borrowings

The contractual maturity of the Company’s financial liabilities as of December 31, 2024 is as follows:

	(Units: in millions of Won)
Classification	Book value		Cash flow accordingto the contract		Less than one year		One to five years		More than five years
Account payable – trade		126,508		126,508		126,508		—		—
Borrowings*		615,600		635,141		425,815		209,326		—
Debentures*		8,511,280		9,633,481		2,419,328		5,005,966		2,208,187
Lease liabilities		1,637,951		1,905,971		378,533		1,070,473		456,965
Accounts payable – other and other financial liabilities^/^*		5,018,850		5,074,355		4,496,367		572,831		5,157
Total		15,910,189		17,375,456		7,846,551		6,858,596		2,670,309
*	Includes interest payments.
---	---
**	The Company’s accounts payable – other and other financial liabilities includes amounts for payments<br>made using electronic payments under supplier finance arrangements, which payments are made by the Company within the normal operating cycle. No collateral is incurred in connection with such arrangements, and there are no substantive changes in the<br>payment conditions. Therefore, such amount is classified as accounts payable – other and presented as part of operating cash flows in the statements of cash flows. Accounts payable – other and other financial liabilities related to<br>supplier finance arrangements amounted to Won 298,448 million as of December 31, 2024.
---	---

The Company does not expect this cash flow to occur significantly earlier or to be significantly different in amount.

As of December 31, 2024, periods in which cash flows from derivatives are expected to occur are as follows:

	(Units: in millions of Won)
Classification	Book value			Cash flow accordingto the contract			Less than one year		One to five years
Assets		270,797			282,892			105,005		177,887
Liabilities		(748	)		(750	)		—		(750	)
(3)	Fulfillment conditions related to financing
---	---

The debentures issued publicly by the Company between 2012 and 2024 are subject to certain covenants for investor protection, including maintaining specified financial ratios and limitations on liens, disposal of assets and changes in control.

The Company is currently in compliance with all such covenants.

C.	Expenditures
(1)	Capital Expenditures
---	---
	(Unit: in trillions of Won)
---	---	---	---	---	---	---
	For the year endedDecember 31, 2024		For the year endedDecember 31, 2023		For the year endedDecember 31, 2022
Capital Expenditures		2.39		2.74		3.03

In 2024, the Company executed Won 2.39 trillion of capital expenditures to enhance the competitiveness of its wireless and fixed-line network infrastructure as well as to invest in growth businesses, including data center and AI-based services.

In the future, additional capital expenditures will be required to enhance the quality and competitiveness of the Company’s 5G network. However, the expected size, timing and source of funding of such expenditures remain pending subject to market conditions.

5. Commitments and Contingencies

For information on the Company’s commitments and contingencies, see Note 37 of the notes to the Company’s audited consolidated financial statements attached hereto.

V.	AUDITOR’S OPINION

1. Independent Auditors and Audit Opinions

A.	Independent Auditor and Audit Opinion (Separate and Consolidated)
Period	Classification	Independent auditor	Audit opinion	Emphasis of Matter	Critical Audit Matters
---	---	---	---	---	---
Year ended<br><br><br>December 31, 2024	Audit report (Separate)	Ernst & Young Han Young	Unqualified	—	Timing of revenue recognition related to the Company’s cellular services
	Audit report (Consolidated)	Ernst & Young Han Young	Unqualified	—	Timing of revenue recognition related to the Company’s cellular services; impairment<br>assessment of goodwill for the fixed-line telecommunications services cash generating unit
Year ended<br><br><br>December 31, 2023	Audit report (Separate)	Ernst & Young Han Young	Unqualified	—	Timing of revenue recognition related to the Company’s cellular services
	Audit report (Consolidated)	Ernst & Young Han Young	Unqualified	—	Timing of revenue recognition related to the Company’s cellular services; impairment<br>assessment of goodwill for the fixed-line telecommunications services cash generating unit
Year ended December 31, 2022	Audit report (Separate)	Ernst & Young Han Young	Unqualified	—	Timing of revenue recognition related to the Company’s cellular services
	Audit report (Consolidated)	Ernst & Young Han Young	Unqualified	—	Timing of revenue recognition related to the Company’s cellular services; impairment<br>assessment of goodwill for the fixed-line telecommunications services cash generating unit
*	Note: All consolidated subsidiaries of the Company that are subject to audits and whose audits have been<br>completed received unqualified audit opinions.
---	---
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 hours
Year ended December 31, 2024		Ernst &<br>Young Han<br>Young	Quarterly and semi-annual review			2,880		25,000			2,880		25,000
			Separate financial statements audit
			Consolidated financial statements audit
			English financial statements review and other audit task
			Internal accounting system audit
Year ended December 31, 2023		Ernst &<br>Young Han<br>Young	Quarterly and semi-annual review			2,780		24,800			2,780		24,800
			Separate financial statements audit
			Consolidated financial statements audit
			English financial statements review and other audit task
			Internal accounting system audit
Year ended December 31, 2022		Ernst &<br>Young Han<br>Young	Quarterly and semi-annual review			2,700		24,100			2,700		24,100
			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
Year ended December 31, 2024	—	—	—		—
Year ended December 31, 2023	—	—	—		—
Year ended December 31, 2022	—	—	—		—
D.	Discussions between Audit Committee and Independent Auditors
---	---
Date	Attendance	Method	Key Matters Discussed
---	---	---	---
February 20, 2024	Company’s Audit Committee: 4<br><br><br>Auditor: 2	In-person	Report on 2023 results of audit of financial statements; report on results of 2023 internal accounting management system audit
April 22, 2024	Company’s Audit Committee: 3<br><br><br>Auditor: 1	In-person	Report on 2023 Public Company Accounting Oversight Board audit results
May 22, 2024	Company’s Audit Committee: 3<br><br><br>Auditor: 2	In-person	Report on audit plans for 2024
July 24, 2024	Company’s Audit Committee: 4<br><br><br>Auditor: 2	In-person	Report on results of external auditors’ 2024 semi-annual review
December 18, 2024	Company’s Audit Committee: 4<br><br><br>Auditor: 2	In-person	Report on the 2024 financial report internal control test result; report on audit plans at the end of the period
February 25, 2025	Company’s Audit Committee: 4<br><br><br>Auditor: 2	In-person	Report on 2024 results of audit of financial statements; report on results of 2024 internal accounting management system audit

VI.	CORPORATE ORGANIZATION INCLUDING BOARD OF DIRECTORS

1. Board of Directors

A.	Overview of the Composition of the Board of Directors

The Board of Directors is composed of nine members: three inside directors, five independent directors and one non-executive director. The Board of Directors operates the following five committees: Independent Director Nomination Committee, Audit Committee, Future Strategy Committee, Compensation Committee and ESG Committee.

	(As of December 31, 2024)
Total numberof directors	Inside directors	Non-executivedirector	Independent directors
9	Young Sang Ryu, Jong Ryeol Kang, Yang Seob Kim	Sung Hyung Lee	Yong-Hak Kim, Seok-Dong Kim, Junmo Kim, Haeyun Oh, Mi Kyung Noh
*	At the 40th General Meeting of Shareholders held on March 26, 2024, Young Sang Ryu was re-elected as an inside director, Mi Kyung Noh was newly elected as an independent director/audit committee member, Sung Hyung Lee was newly elected as a non-executive<br>director and Yang Seob Kim was newly elected as an inside director.
---	---
**	At the Board Meeting held on March 26, 2024, Young Sang Ryu was re-elected as representative director.
---	---
B.	Significant Activities of the Board of Directors
---	---

(As of December 31, 2024)

Meeting	Date	Agenda	Approval
486th (the 1st meeting of 2024)	January 19, 2024	• KPI evaluation for 2023<br><br><br>• Post-period report on the fourth quarter of 2023	Approved as proposed<br><br><br>—
487th (the 2nd meeting of 2024)	January 25, 2024	• Compensation of representative director<br><br><br>• Compensation of inside director, Jong Ryeol Kang<br><br><br>• Disposal of treasury shares	Approved as proposed<br><br><br>Approved as proposed<br> <br>Approved<br>as proposed
488th (the 3rd meeting of 2024)	February 2, 2024	• Financial statements as of and for the year ended<br>December 31, 2023<br> <br>• Annual business report for the year ended<br>December 31, 2023	Approved as proposed<br> <br><br><br><br>Approved as proposed
489th (the 4th meeting of 2024)	February 21, 2024	• Report of internal accounting management system<br><br><br>• Convocation of the 40th General Meeting of Shareholders<br><br><br>• Determination of KPIs for 2024<br><br><br>• 2024 donations to the Korea Fencing Federation<br><br><br>• Results of evaluation of internal accounting management system	—<br><br><br>Approved as proposed<br> <br>Approved<br>as proposed<br> <br>Approved as proposed<br><br><br>—
490th (the 5th meeting of 2024)	March 26, 2024	• Election of the chairman of the Board of Directors<br><br><br>• Appointment of representative director<br><br><br>• Appointment of committee members<br><br><br>• Appointment of compliance officer<br><br><br>• Amendment to the Board of Directors Regulations<br><br><br>• Transactions with SK Inc. in the second quarter of 2024<br><br><br>• Donations for creation of social value<br><br><br>• Results of personal credit information management and protection status<br>inspection	Approved as proposed<br><br><br>Approved as proposed<br> <br>Approved<br>as proposed<br> <br>Approved as proposed<br><br><br>Approved as proposed<br> <br>Approved<br>as proposed<br> <br>Approved as proposed<br><br><br>—
491st (the 6th meeting of 2024)	April 25, 2024	• Post-period report on the first quarter of 2024<br><br><br>• Payment of operating expenses of SUPEX Council for 2024<br><br><br>• Dividends for the first quarter of 2024<br><br><br>• Compensation of inside director, Yang Seob Kim<br><br><br>• Disposal of treasury shares	—<br><br><br>Approved as proposed<br> <br>Approved<br>as proposed<br> <br>Approved as proposed<br><br><br>Approved as proposed
492nd (the 7th meeting of 2024)	May 23, 2024	• Transactions with SK Inc. for the establishment of the MNO AI<br>Platform<br> <br>• Transactions with SK E&S for AI pilot service for internal<br>knowledge information search	Approved as proposed<br> <br><br><br><br>Approved as proposed
493rd (the 8th meeting of 2024)	June 27, 2024	• Contract with SK E&S for purchase of renewable energy<br>power<br> <br>• Lease agreement with SK Innovation for SK Muui Training Center<br><br><br>• Transactions with SK Inc. in the third quarter of 2024	Approved as proposed<br> <br><br><br><br>Approved as proposed<br> <br><br><br><br>Approved as proposed
494th (the 9th meeting of 2024)	July 8, 2024	• Investment in Company S	Approved as proposed

Meeting	Date	Agenda	Approval
495th (the 10th meeting of 2024)	July 25, 2024	• Report on the first half of 2024<br><br><br>• Dividends for the second quarter of 2024<br><br><br>• Compensation of representative director<br><br><br>• Compensation of inside director, Jong Ryeol Kang<br><br><br>• Compensation of inside director, Yang Seob Kim<br><br><br>• Post-period report on the second quarter of 2024<br><br><br>• Board of Directors operating budget for 2024 and first half of 2024 performance	—<br> <br>Approved as proposed<br><br><br>Approved as proposed<br> <br>Approved as proposed<br><br><br>Approved as proposed<br> <br>—<br><br><br>—
496th (the 11th meeting of 2024)	August 22, 2024	• Additional donations in 2024 to the Korea Fending Federation<br><br><br>• Transactions with SK Siltron for the establishment/operation of Private 5GX	Approved as proposed<br> <br><br><br><br>Approved as proposed
497th (the 12th meeting of 2024)	September 26, 2024	• Extension of maturity of Korea IT Fund<br><br><br>• Transactions with SK Inc. in the fourth quarter of 2024	Approved as proposed<br> <br>Approved as<br>proposed
498th (the 13th meeting of 2024)	October 24, 2024	• Payment of operating expenses of SUPEX Council<br><br><br>• Payment of mySUNI contributions with SK Innovation<br><br><br>• Payment of operating expenses of SK Academy/SK Management and Economic Research Institute<br><br><br>• Dividends for the third quarter of 2024<br><br><br>• Post-period report on the third quarter of 2024<br><br><br>• Corporate value-up plan	Approved as proposed<br> <br>Approved as proposed<br><br><br>Approved as proposed<br> <br><br><br><br>Approved as proposed<br> <br>—<br><br><br>—
499th (the 14th meeting of 2024)	November 13, 2024	• Acquisition of equity interest in SK Broadband	Approved as proposed
500th (the 15th meeting of 2024)	November 28, 2024	• Donation of video equipment to Sejong University<br><br><br>• Re-appointment of representative director<br><br><br>• Results of SK AI Summit 2024	Approved as proposed<br> <br>—<br><br><br>—
501st (the 16th meeting of 2024)	December 4, 2024	• Organizational changes in 2025 and appointment of executive officers	—
502nd (the 17th meeting of 2024)	December 19, 2024	• Issuance and delegation of electronic short-term bonds<br><br><br>• Procurement and delegation of long-term borrowings<br><br><br>• Payment of business aircraft operating expenses in 2025<br><br><br>• Transactions with SK Pinx in 2025<br><br><br>• Payment of mySUNI contributions with SK Innovation in 2025<br><br><br>• Payment of operating expenses of SK Management and Economic Research Institute<br>in 2025<br> <br>• Payment of operating expenses of SK Academy in 2025<br><br><br>• Lease agreement with SK Inc. for Indeung mountain SUPEX center in<br>2025–2027<br> <br>• Transactions with SK Forest for landscaping and facility<br>management service in 2025–2027<br> <br>• Transactions with SK Inc. for AI B2B<br>business in 2025<br> <br>• Transactions with SK Inc. for IT integrated purchase in<br>2025<br> <br>• Transactions with SK Inc. in the first quarter of 2025<br><br><br>• Business plans for 2025<br><br><br>• Determination of KPIs for 2025<br><br><br>• Donation of astronomical equipment following the termination of Starhug<br>service<br> <br>• Health and safety plan for 2025<br><br><br>• Results of compliance activities in 2024 and plans for 2025	Approved as proposed<br><br><br>Approved as proposed<br> <br>Approved<br>as proposed<br> <br>Approved as proposed<br><br><br>Approved as proposed<br> <br><br><br><br>Approved as proposed<br> <br><br><br><br>Approved as proposed<br> <br>Approved<br>as proposed<br> <br><br> <br>Approved as proposed<br><br><br><br> <br>Approved as proposed<br><br><br>Approved as proposed<br> <br>Approved<br>as proposed<br> <br>Approved as proposed<br><br><br>Approved as proposed<br> <br>Approved<br>as proposed<br> <br><br> <br>Approved as proposed<br><br><br>—

Meeting	Date	Agenda	Approval
503rd (the 1st meeting of 2025)	January 20, 2025	• KPI evaluation for 2024<br><br><br>• Report for the period after the fourth quarter of 2024	Approved as proposed<br><br><br>—
504th (the 2nd meeting of 2025)	January 23, 2025	• 2025 donations to the Korea Fencing Federation<br><br><br>• Compensation of representative director<br><br><br>• Compensation of inside director, Jong Ryeol Kang<br><br><br>• Compensation of inside director, Yang Seob Kim<br><br><br>• Operating budget performance of the Board of Directors in 2024 and plans for<br>2025	Approved as proposed<br><br><br>Approved as proposed<br> <br>Approved<br>as proposed<br> <br>Approved as proposed<br><br><br>—
505th (the 3rd meeting of 2025)	February 11, 2025	• Dividends for the fiscal year 2024<br><br><br>• Financial statements as of and for the year ended December 31, 2024<br><br><br>• Annual business report for the year ended December 31, 2024	Approved as proposed<br><br><br>Approved as proposed<br> <br><br><br><br>Approved as proposed
506th (the 4th meeting of 2025)	February 27, 2025	• Report of internal accounting management system<br><br><br>• Convocation of the 41st General Meeting of Shareholders<br><br><br>• Appointment of compliance officer<br><br><br>• Transaction with SK Inc. for maintenance of T ID service<br><br><br>• Results of evaluation of internal accounting management system	—<br><br><br>Approved as proposed<br> <br>Approved<br>as proposed<br> <br>Approved as proposed<br><br><br>—
507th (the 5th meeting of 2025)	March 10, 2025	• Approval of amendments to the financial statements as of and<br>for the year ended December 31, 2024<br><br><br>• Re-approval of annual business report<br>for the year ended December 31, 2024	Approved as proposed<br> <br><br><br><br>Approved as proposed
*	Line items that do not show approval are for reporting purposes only.
---	---
C.	Committees within Board of Directors
---	---
(1)	Committee structure
---	---
(a)	Independent Director Nomination Committee (as of December 31, 2024)
---	---
Total numberof persons	Names of Member Directors	Task
---	---	---
4	Yong-Hak Kim, Junmo Kim, Haeyun Oh, Sung Hyung Lee	Evaluation and management of candidates for independent directors, confirmation of list of candidates; nomination of<br>independent directors to be elected at the General Meeting of Shareholders
*	Under the Korean Commercial Code, a majority of the members of the Independent Director<br>Nomination Committee must be independent directors.
---	---
(b)	Future Strategy Committee (as of December 31, 2024)
---	---
Total numberof persons	Names of Member Directors	Task
---	---	---
9	Yong-Hak Kim, Seok-Dong Kim, Junmo Kim, Haeyun Oh, Mi Kyung Noh, Young Sang Ryu, Sung Hyung Lee, Jong Ryeol Kang, Yang<br>Seob Kim	Deliberation of annual management plan and discussion of mid- to long-term<br>strategy; establishment and evaluation of KPI and material investments; enhancement of enterprise value and establishment of future and direction of the Company
*	The Future Strategy Review Committee is a committee established by the resolution of the<br>Board of Directors.
---	---

(c)	Compensation Committee (as of December 31, 2024)
Total numberof persons	Names of Member Directors	Task
---	---	---
4	Yong-Hak Kim, Seok-Dong Kim, Mi Kyung Noh, Sung Hyung Lee	Management of CEO candidates; deliberation of election and re-election of CEO;<br>review of CEO and inside director remuneration amount appropriateness
*	The Compensation Committee is a committee established by the resolution of the Board of<br>Directors.
---	---
(d)	ESG Committee (as of December 31, 2024)
---	---
Total numberof persons	Names of Member Directors	Task
---	---	---
4	Junmo Kim, Haeyun Oh, Mi Kyung Noh, Jong Ryeol Kang	Deliberation of plans and performance in the major areas of ESG, mandatory ESG disclosure matters and ESG stakeholder<br>communication
*	The ESG Committee is a committee established by the resolution of the Board of Directors.<br>
---	---
(e)	Audit Committee (as of December 31, 2024)
---	---
Total numberof persons	Names of Member Directors	Task
---	---	---
4	Seok-Dong Kim, Yong-Hak Kim, Mi Kyung Noh, Haeyun Oh	Review of financial statements and supervision of independent audit process, etc.
*	The Audit Committee is a committee established under the provisions of the Articles of<br>Incorporation and the Korean Commercial Code.
---	---

2. Audit System

The Company’s Audit Committee consists of four independent directors, Seok-Dong Kim (chairman of the Audit Committee and financial and accounting expert), Yong-Hak Kim, Haeyun Oh and Mi Kyung Noh (financial and accounting expert).

Major activities of the Audit Committee as of March 17, 2025 are set forth below.

Meeting	Date	Agenda	Approval
The 1^st^ meeting of 2024	February 1, 2024	• Collective approval of the services provided by external<br>auditors in 2024<br> <br>• Results of first regular business audit of 2024	Approved as proposed<br><br><br>—
The 2^nd^ meeting of 2024	February 20, 2024	• Operation of internal accounting management system<br><br><br>• Audit results for fiscal year 2023<br><br><br>• Internal accounting management system audit results for fiscal year 2023<br><br><br>• Ethics management performance for fiscal year 2023 and plan for fiscal year<br>2024<br> <br>• Audit committee’s opinion on internal monitoring apparatus<br><br><br>• Evaluation of the operational status of internal accounting management<br>system<br> <br>• Confirmation of agenda of the 40th General Meeting of Shareholders<br>and opinions on document investigation<br> <br>• Audit report for the 40th period<br><br><br>• Contracts related to the distribution of free gifts to fixed-line clients in<br>2024	—<br><br><br>—<br> <br>—<br><br><br>Approved as proposed<br> <br><br><br><br>Approved as proposed<br> <br>Approved<br>as proposed<br> <br>Approved as proposed<br> <br><br><br><br>Approved as proposed<br> <br>Approved<br>as proposed
The 3^rd^ meeting of 2024	March 25, 2024	• Results of 2023 first regular audit compliance evaluation<br><br><br>• Contract for maintenance services of optical cables in 2024<br><br><br>• Contract for maintenance services of transmission equipment in 2024<br><br><br>• Board delegation of contributions to company employee welfare fund for 2024<br><br><br>• Board delegation of real estate sublease transaction with SK Broadband	—<br><br><br>Approved as proposed<br> <br>Approved<br>as proposed<br> <br>Approved as proposed<br><br><br>Approved as proposed
The 4^th^ meeting of 2024	April 22, 2024	• Appointment of committee chairman<br><br><br>• PCAOB audit results for fiscal year 2023	Approved as proposed<br><br><br>—
The 5^th^ meeting of 2024	May 22, 2024	• Evaluation plan for management’s operation of internal<br>accounting management system<br> <br>• Audit plan for fiscal year 2024	—<br> <br><br><br><br>—
The 6^th^ meeting of 2024	June 26, 2024	• Evaluation of services provided by external auditors in<br>fiscal year 2023	—

Meeting	Date	Agenda	Approval
The 7^th^ meeting of 2024	July 24, 2024	• Ethics management performance for the first half of 2024 and<br>plan for the second half of 2024<br> <br>• Review of results of external<br>auditor’s review for the first half of 2024<br> <br>• Plan for selection of<br>external auditor for fiscal years 2025 to 2027	Approved as proposed<br> <br><br><br><br>—<br> <br>—
The 8^th^ meeting of 2024	August 21, 2024	• Special audit results for fiscal year 2024	—
The 9^th^ meeting of 2024	September 25, 2024	• Evaluation of external auditor candidates<br><br><br>• Results of second regular business audit of 2024	—<br><br><br>—
The 10^th^ meeting of 2024	October 23, 2024	• Selection of external auditor<br><br><br>• Ethics management program operating performance for fiscal year 2024<br><br><br>• Compliance plan for 2024 special audit recommendations	Approved as proposed<br><br><br>—<br> <br>—
The 11^th^ meeting of 2024	November 27, 2024	• Approval of internal audit director’s evaluation for<br>2024<br> <br>• Accounting oversight plan of the audit committee<br><br><br>• Status and plans for the Jangchung-dong building	Approved as proposed<br><br><br>—<br> <br>—
The 12^th^ meeting of 2024	December 18, 2024	• Results of the ethics management evaluation system for fiscal<br>year 2024<br> <br>• Results of 2024 financial statement internal control test and end<br>of the period audit plans<br> <br>• Results of regular business audit for the second<br>half of 2024<br> <br>• Approval of external audit contract<br><br><br>• Transaction with PS&Marketing in 2025<br><br><br>• Transaction with SK Broadband in 2025<br><br><br>• Goods and service transaction with SK Hynix in 2025<br><br><br>• Service transaction with One Store in 2025<br><br><br>• Goods and service transaction with SK Planet in 2025<br><br><br>• Goods and service transaction with Wavve in 2025<br><br><br>• Goods and service transaction with Dreamus Company in 2025<br><br><br>• Base station maintenance services in 2025<br><br><br>• Exchange equipment operational support service in 2025<br><br><br>• Delegation of consultations for unpaid amounts and collection of accounts<br>receivable in 2025<br> <br>• Service management of client contact channels in 2025<br><br><br>• Goods transaction with Happy Nare in 2025<br><br><br>• Wireless and fixed-line infrastructure construction service transactions in<br>2025<br> <br>• Distribution network store construction service transaction in 2025<br><br><br>• Office building facility improvement construction service transaction in<br>2025	—<br><br><br>—<br> <br><br><br><br>—<br> <br>Approved as<br>proposed<br> <br>Approved as proposed<br><br><br>Approved as proposed<br> <br>Approved<br>as proposed<br> <br>Approved as proposed<br><br><br>Approved as proposed<br> <br>Approved<br>as proposed<br> <br>Approved as proposed<br><br><br>Approved as proposed<br> <br>Approved<br>as proposed<br> <br>Approved as proposed<br> <br><br><br><br>Approved as proposed<br> <br>Approved<br>as proposed<br> <br>Approved as proposed<br><br><br>Approved as proposed<br> <br>Approved<br>as proposed
The 1^st^ meeting of 2025	February 10, 2025	• Compliance plan for regular business audit results for the<br>second half of 2024<br> <br>• 2024 performance and 2025 plan for the audit office<br><br><br>• Pre-approval of non-audit services by external auditors<br><br><br>• Collective approval of the services provided by external auditors in<br>2025	—<br><br><br>Approved as proposed<br> <br>Approved<br>as proposed<br> <br>Approved as proposed
The 2^nd^ meeting of 2025	February 25, 2025	• Operational status of internal accounting management<br>system<br> <br>• Audit results for fiscal year 2024<br><br><br>• Internal accounting management system audit results for fiscal year 2024<br><br><br>• Enterprise division regular audit improvement implementation review results<br><br><br>• Monitoring activities by the audit committee for fiscal year 2024<br><br><br>• Audit committee’s opinion on internal monitoring apparatus<br><br><br>• Evaluation of the operational status of internal accounting management<br>system<br> <br>• Confirmation of agenda of the 41st General Meeting of Shareholders<br>and opinions on document investigation<br> <br>• Audit report for fiscal year 2024<br><br><br>• Contracts related to the distribution of free gifts to fixed-line<br>clients	—<br><br><br>—<br> <br>—<br><br><br>—<br> <br>—<br><br><br>Approved as proposed<br> <br>Approved<br>as proposed<br> <br>Approved as proposed<br> <br><br><br><br>Approved as proposed<br> <br>Approved<br>as proposed
The 3^rd^ meeting of 2025	March 10, 2025	• Re-approval of audit<br>report for fiscal year 2024	Approved as proposed

3. Shareholders’ Exercise of Voting Rights

A.	Voting System

(As of December 31, 2024)

Classification of Voting System	Cumulative voting system	Written voting system	Electronic voting system
Adoption status	Selected	Not adopted	Adopted
Implementation status	—	—	Conducted during the 40th General Meeting of Shareholders

The Company implemented a proxy solicitation procedure for the 40th General Meeting of Shareholders, pursuant to which shareholders were permitted to provide written proxy to exercise their voting rights.

VII.	SHAREHOLDERS

1. Shareholdings of the Largest Shareholder and Related Persons

A.	Shareholdings of the Largest Shareholder and Related Persons
(As of December 31, 2024)	(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		30.57
Tae Won Chey	Officer of affiliated company	Common share		303		0.00		303		0.00
Dong Hyun Jang	Officer of affiliated company	Common share		762		0.00		762		0.00
Young Sang Ryu	Officer of the Company	Common share		11,974		0.01		20,309		0.01
Yong-Hak Kim	Officer of the Company	Common share		3,358		0.00		4,923		0.00
Seok-Dong Kim	Officer of the Company	Common share		2,785		0.00		3,763		0.00
Junmo Kim	Officer of the Company	Common share		2,785		0.00		3,763		0.00
Haeyun Oh	Officer of the Company	Common share		1,338		0.00		2,316		0.00
Mi Kyung Noh	Officer of the Company	Common share		0		0.00		978		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		5,758		0.00		8,823		0.00
Total		Common share		65,724,963		30.03		65,717,070		30.60
*	The change in ownership ratio reflects the cancellation of treasury shares (1.8% of total shares issued) in<br>February 2024.
---	---
**	The number of shares owned and ownership ratio as of the beginning of the period account for the 24,770 shares<br>owned by Kyu-nam Choi (former non-executive director) and Youngmin Yoon (former independent director), whose respective terms expired in March 2024, and Jung Ho Park<br>(former related person), whose related party status was eliminated in September 2024.
---	---
***	The number of shares owned and ownership ratio as of the beginning of the period do not account for the shares<br>owned by Mi Kyung Noh (independent director), who was newly appointed in March 2024.
---	---
B.	Overview of the Largest Shareholder
---	---

As of December 31, 2024, 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/.

C.	Changes in Shareholdings of the Largest Shareholder and Related Persons

Changes in shareholdings of the largest shareholder are as follows:

(As of December 31, 2024)		(Unit: in shares and percentages)
LargestShareholder	Date of the change	Shares Held*	HoldingRatio	Remarks
SK Inc.	January 24, 2022	65,695,437	30.02	Jung Ho Park, director of the Company’s affiliate, and Young Sang Ryu, representative director of the Company, acquired 3,000 and 4,000 shares, respectively.
	February 25, 2022	65,703,035	30.02	Jung Ho Park, director of the Company’s affiliate, acquired 7,598 shares.

(As of December 31, 2024)		(Unit: in shares and percentages)
LargestShareholder	Date of the change	Shares Held*	HoldingRatio	Remarks
	March 25, 2022	65,706,519	30.03	Jong Ryeol Kang, executive director of the Company, acquired 3,484 shares.
	May 3, 2022	65,712,503	30.03	Four independent directors of the Company, Youngmin Yoon, Jung Ho Ahn, Junmo Kim, Seok-dong Kim, each acquired 1,144 shares. Yong-Hak Kim, another independent director of the Company, acquired 1,408 shares.
	February 27, 2023	65,719,411	30.03	Young Sang Ryu, representative director of the Company, and Jong Ryeol Kang, executive director of the Company, acquired 4,634 and 2,274 shares, respectively.
	March 28, 2023	65,717,964	30.03	Retirement of Jung Ho Ahn, independent director of the Company (1,447 shares)
	April 21, 2023	65,724,963	30.03	Four independent directors, Youngmin Yoon, Haeyun Oh, Junmo Kim and Seok-dong Kim each acquired 1,338 shares. Yong-Hak Kim, independent director of the Company, acquired 1,647 shares.
	January 29, 2024	65,736,363	30.04	Young Sang Ryu, representative director of the Company, and Jong Ryeol Kang, executive director of the Company, acquired 8,335 and 3,065 shares, respectively.
	March 26, 2024	65,733,123	30.60	Retirement of Youngmin Yoon, independent director of the Company (2,785 shares) and Kyu-nam Choi, non-executive director of the company (455<br>shares)
	April 29, 2024	65,738,600	30.61	Four independent directors of the Company, Seok-Dong Kim, Junmo Kim, Mi Kyung Noh, Haeyun Oh, each acquired 978 shares. Yong-Hak Kim, another independent director of the Company, acquired 1,565 shares.
	September 22, 2024	65,717,070	30.60	Elimination of former related person Jung Ho Park’s related party relationship (21,530 shares).
*	The figures for shares held and holding ratio are based on the shareholding of the largest shareholder and its<br>related persons.
---	---

2. Distribution of Shares

A.	Shareholders with Ownership of 5% or Greater
(As of December 31, 2024)	(Unit: in shares and percentages)
---	---	---	---	---	---	---
Name (title)	Common share
	Number of shares		Ownership ratio			Remarks
SK Inc.		65,668,397		30.57	%	—
National Pension Service		18,878,265		8.79	%	—
Citibank ADR		14,663,858		6.83	%	—
Shareholdings under the Employee Stock Ownership Program		—		—		—
B.	Minority Shareholders
---	---
(As of December 31, 2024)	(Unit: in shares and percentages)
---	---	---	---	---	---	---	---	---	---	---	---	---
Classification	Shareholders						Ownership
	Number ofminorityshareholders		Totalnumber ofshareholders		Ratio (%)		Number ofshares owned byminorityshareholders		Total numberof sharesissued		Ratio(%)
Minority shareholders*		195,721		195,727		99.9		113,131,436		212,886,342		53.1
*	Shareholders who hold less than 1% of total voting shares issued.
---	---

3. Share Price and Trading Volume in the Last Six Months

A.	Domestic Securities Market
		(Unit: in Won and shares)
---	---	---	---	---	---	---	---	---	---	---	---	---	---
Types		July 2024		August 2024		September2024		October 2024		November2024		December 2024
Common stock	Highest		54,600		56,100		58,400		57,500		61,500		60,900
	Lowest		51,200		51,800		55,200		54,700		55,300		55,200
	Average		52,770		54,719		57,228		56,395		57,343		57,330
Daily transaction volume	Highest		1,055,163		1,332,415		1,322,629		913,253		1,693,476		1,145,912
	Lowest		214,401		226,614		283,009		283,051		265,563		219,551
Monthly transaction volume			10,816,824		11,567,974		11,604,828		10,440,013		11,441,423		12,110,027
B.	Foreign Securities Market (New York Stock Exchange)
---	---
		(Unit : in US and ADRs)
---	---	---	---	---	---	---	---	---	---	---	---	---
Types		July 2024	August 2024		September2024		October 2024		November2024		December 2024
Depositary receipt	Highest			23.59		24.47		23.63		24.27		23.93
	Lowest			21.22		23.29		22.57		22.16		21.04
	Average			22.65		23.99		22.98		22.71		22.09
Daily transaction volume	Highest			457,750		402,960		399,000		325,600		650,400
	Lowest			110,860		102,240		118,030		135,850		77,700
Monthly transaction volume				5,085,820		4,996,060		5,013,580		4,422,690		5,740,940

All values are in US Dollars.

VIII.	EMPLOYEES AND DIRECTORS

1. Officers and Employees

A.	Employees
(As of December 31, 2024)	(Unit: in persons and millions of Won)
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
Business segment	Gender	Number of employees										Averagelength ofservice(years)		Aggregate wagefor the year of2024		Average wageper person
		Employees without afixed term ofemployment				Employees with afixed term ofemployment				Total
		Total		Part-timeemployees		Total		Part-timeemployees
—	Male		4,099		—		128		—		4,227		14.4		737,862		175
—	Female		1,054		—		212		—		1,266		8.7		148,589		117
Total			5,153		—		340		—		5,493		13.7		886,451		161
B.	Compensation of Unregistered Officers
---	---
(As of December 31, 2024)	(Unit: in persons and millions of Won)
---	---	---	---	---
Number of Unregistered Officers	Aggregate wage for the year of 2024		Average wage per person
113		65,538		579

2. Compensation of Directors

A.	Amount Approved at the Shareholders’ Meeting
(As of December 31, 2024)	(Unit: in millions of Won)
---	---	---	---	---
Classification	Number of Directors		Aggregate Amount Approved
Directors		9		10,000

B.	Amount Paid

(1) Total Amount

(As of December 31, 2024)	(Unit: in millions of Won)
Number of Directors	Aggregate Amount Paid		Average Amount Paid Per Director		Remarks
9		5,781		723		—
*	The number of directors includes one non-executive<br>director who did not receive any compensation.
---	---
**	The average amount paid per director excludes one<br>non-executive director who did not receive any compensation.
---	---
***	The aggregate amount paid excludes severance received by former inside director Jong Ryeol<br>Kang.
---	---

(2) Amount by Classification

(As of December 31, 2024)	(Unit: in millions of Won)
Classification	Number of Directors		Aggregate Amount Paid		Average Amount Paid Per Director		Remarks
Inside Directors		4		4,998		1,666		—
Independent Directors (Excluding Audit Committee Members)		1		150		150		—
Audit Committee Members		4		633		158		—
Auditor		—		—		—		—
*	The number of directors includes one non-executive<br>director who did not receive any compensation.
---	---
**	The average amount paid per director excludes one<br>non-executive director who did not receive any compensation.
---	---

3. Individual Compensation of Directors and Officers

A.	Remuneration for Individual Directors (among those Paid over Won 500 Million per Year)
(As of December 31, 2024)		(Unit: in millions of Won)
---	---	---	---	---
Name	Position	Total remuneration		Payment not includedin total remuneration
Young Sang Ryu	Representative Director		3,083	26,555 PSUs
Jong Ryeol Kang	Inside Director		5,194	5,311 PSUs
*	Young Sang Ryu and Jong Ryeol Kang, two of the registered directors, were granted performance<br>stock units (“PSUs”) pursuant to the Company’s equity compensation plan in consideration of their short- and long-term achievements. See “VIII. Employees and Directors — 4. Stock Options Granted and Exercised — C.<br>Equity Compensation Plans” for additional details on the PSUs.
---	---
B.	Composition of Total Remuneration
---	---
Name	Composition
---	---
Young Sang Ryu	Total remuneration: Won 3,083 million<br><br><br>• Salary: Won 1,400 million<br><br><br>• Bonus: Won 1,640 million<br><br><br>• Gain from stock options exercised: Won 17 million<br><br><br>• Other earned income: Won 26 million
Jong Ryeol Kang	Total remuneration: Won 5,194 million<br><br><br>• Salary: Won 700 million<br><br><br>• Bonus: Won 754 million<br><br><br>• Other earned income: Won 13 million<br><br><br>• Severance: Won 3,727 million
C.	Remuneration for the Five Highest-Paid Officers (among those Paid over Won 500 Million perYear)
---	---
(As of December 31, 2024)				(Unit: in millions of Won)
---	---	---	---	---
Name	Position	Total remuneration		Payment not included intotal remuneration
Jong Ryeol Kang	Inside Director		5,194	5,311 PSUs
Yong Seop Yum	Head of SK Research Institute		4,941	—
Yong Joo Park	Vice President		3,138	2,360 PSUs
Young Sang Ryu	Representative Director		3,083	26,555 PSUs
Yong Chul Yoon	Vice President		2,961	—
*	Jong Ryeol Kang, Yong Joo Park and Young Sang Ryu were granted PSUs pursuant to the<br>Company’s equity compensation plan in consideration of their short- and long-term achievements. See “VIII. Employees and Directors — 4. Stock Options Granted and Exercised — C. Equity Compensation Plans” for additional<br>details on the PSUs.
---	---

D.	Composition of Total Remuneration
Name	Composition
---	---
Jong Ryeol Kang	Total remuneration: Won 5,194 million<br><br><br>• Salary: Won 700 million<br><br><br>• Bonus: Won 754 million<br><br><br>• Other earned income: Won 13 million<br><br><br>• Severance: Won 3,727 million
Yong Seop Yum	Total remuneration: Won 4,941 million<br><br><br>• Salary: Won 825 million<br><br><br>• Bonus: Won 544 million<br><br><br>• Other earned income: Won 5 million<br><br><br>• Severance: Won 3,567 million
Yong Joo Park	Total remuneration: Won 3,138 million<br><br><br>• Salary: Won 455 million<br><br><br>• Bonus: Won 631 million<br><br><br>• Other earned income: Won 7 million<br><br><br>• Severance: Won 2,045 million
Young Sang Ryu	Total remuneration: Won 3,083 million<br><br><br>• Salary: Won 1,400 million<br><br><br>• Bonus: Won 1,640 million<br><br><br>• Gain from stock options exercised: Won 17 million<br><br><br>• Other earned income: Won 26 million
Yong Chul Yoon	Total remuneration: Won 2,961 million<br><br><br>• Salary: Won 570 million<br><br><br>• Bonus: Won 513 million<br><br><br>• Other earned income: Won 5 million<br><br><br>• Severance: Won 1,873 million

4. Stock Options Granted and Exercised

A.	Stock Options Granted to Directors and Auditors
(As of December 31, 2024)
---	---	---	---	---	---	---
Classification	Number of Directors		Fair Value of Stock Options<br>(Won)		Remarks
Inside Directors<br><br><br>(Excluding Independent Directors and Audit Committee Members)		2		105,237,755		—
Independent Directors (Excluding Audit Committee Members)		—		—		—
Audit Committee Members		—		—		—
Executives		15		741,117,509		Includes<br>executive<br>officers of<br>affiliates
Total		17		846,355,264		—
B.	Stock Options Granted and Exercised
---	---
(As of December 31, 2024)				(Unit: in Won and shares)
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
Grantee	Relationshipwith theCompany	Date ofGrant	Method ofGrant	InitiallyGranted			ChangesduringReportingPeriod					Total Changes				Unexercisedas of End ofReportingPeriod		ExercisePeriod	ExercisePrice
						Exercised			Canceled		Exercised			Canceled
Young Sang Ryu	Inside Director	March 26, 2019	Issuance of treasury stock, cash settlement		5,265			5,265		—			5,265		—		—	March 27, 2021 – March 26, 2024		50,862
Young Sang Ryu	Inside Director	March 26, 2020	Issuance of treasury stock, cash settlement		7,145			—		—			—		—		7,145	March 27, 2023 – March 26, 2027		38,452

(As of December 31, 2024)				(Unit: in Won and shares)
Grantee	Relationshipwith theCompany	Date ofGrant	Method ofGrant	InitiallyGranted			ChangesduringReportingPeriod					Total Changes				Unexercisedas of End ofReportingPeriod		ExercisePeriod	ExercisePrice
						Exercised			Canceled		Exercised			Canceled
Young Sang Ryu	Inside Director	March 25, 2021	Issuance of treasury stock, cash settlement		18,190			—		—			—		—		18,190	March 26, 2023 – March 25, 2026		50,276
Young Sang Ryu	Inside Director	March 25, 2022	Issuance of treasury stock, cash settlement		295,275			—		196,850*			—		196,850*		98,425	March 26, 2025 – March 25, 2029		56,860
Jong Ryeol Kang	Inside Director	March 26, 2020	Issuance of treasury stock, cash settlement		6,219			—		—			—		—		6,219	March 27, 2023 – March 26, 2027		38,452
Jong Ryeol Kang	Inside Director	March 25, 2021	Issuance of treasury stock, cash settlement		7,136			—		—			—		—		7,136	March 26, 2023 – March 25, 2026		50,276
Jong Ryeol Kang	Inside Director	March 25, 2022	Issuance of treasury stock, cash settlement		21,743			—		—			—		—		21,743	March 26, 2024 – March 25, 2027		56,860
Dong Hwan Cho	Unregistered Officer	March 26, 2020	Issuance of treasury stock, cash settlement		4,631			—		—			—		—		4,631	March 27, 2023 – March 26, 2027		38,452
Dong Hwan Cho	Unregistered Officer	March 25, 2021	Issuance of treasury stock, cash settlement		5,375			—		—			—		—		5,375	March 26, 2023 – March 25, 2026		50,276
Dong Hwan Cho	Unregistered Officer	March 25, 2022	Issuance of treasury stock, cash settlement		8,697			—		—			—		—		8,697	March 26, 2024 – March 25, 2027		56,860
HyunA Lee	Other**	March 26, 2020	Issuance of treasury stock, cash settlement		4,631			—		—			—		—		4,631	March 27, 2023 – March 26, 2027		38,452
HyunA Lee	Other**	March 25, 2021	Issuance of treasury stock, cash settlement		8,746			—		—			—		—		8,746	March 26, 2023 – March 25, 2026		50,276
HyunA Lee	Other**	March 25, 2022	Issuance of treasury stock, cash settlement		12,884			—		12,884			—		12,884		—	March 26, 2024 – March 25, 2027		56,860
Bong Ho Lim	Unregistered Officer	March 25, 2022	Issuance of treasury stock, cash settlement		8,858			—		—			—		—		8,858	March 26, 2024 – March 25, 2027		56,860

(As of December 31, 2024)				(Unit: in Won and shares)
Grantee	Relationshipwith theCompany	Date ofGrant	Method ofGrant	InitiallyGranted			ChangesduringReportingPeriod					Total Changes				Unexercisedas of End ofReportingPeriod		ExercisePeriod	ExercisePrice
						Exercised			Canceled		Exercised			Canceled
Yong Joo Park	Unregistered Officer	March 25, 2022	Issuance of treasury stock, cash settlement		10,334			—		—			—		—		10,334	March 26, 2024 – March 25, 2027		56,860
Hee Sup Kim	Unregistered Officer	March 25, 2022	Issuance of treasury stock, cash settlement		7,086			—		—			—		—		7,086	March 26, 2024 – March 25, 2027		56,860
Jung Whan Ahn	Unregistered Officer	March 25, 2022	Issuance of treasury stock, cash settlement		8,858			—		—			—		—		8,858	March 26, 2024 – March 25, 2027		56,860
Jung Ho Park	Officer of Affiliate	March 24, 2017	Issuance of treasury stock, cash settlement		67,320			—		67,320			—		67,320		—	March 25, 2021 – March 24, 2024		57,562
Jung Ho Park	Officer of Affiliate	March 26, 2020	Issuance of treasury stock, cash settlement		337,408			—		—			—		—		337,408	March 27, 2023 – March 26, 2027		38,452
Myung Jin Han	Officer of Affiliate	March 25, 2021	Issuance of treasury stock, cash settlement		4,403			—		—			—		—		4,403	March 26, 2023 – March 25, 2027		50,276
Myung Jin Han	Officer of Affiliate	March 25, 2022	Issuance of treasury stock, cash settlement		11,274			—		—			—		—		11,274	March 26, 2023 – March 25, 2027		56,860
Hyoung Il Ha	Officer of Affiliate	February 22, 2019	Issuance of treasury stock, cash settlement		4,749			—		4,749			—		4,749		—	February 23, 2021 – February 22, 2024		53,052
Hyoung Il Ha	Officer of Affiliate	March 26, 2020	Issuance of treasury stock, cash settlement		5,955			5,955		—			5,955		—		—	March 27, 2023 – March 26, 2027		38,452
Hyoung Il Ha	Officer of Affiliate	March 25, 2021	Issuance of treasury stock, cash settlement		11,418			11,418		—			11,418		—		—	March 26, 2023 – March 25, 2026		50,276
Poong Young Yoon	Officer of Affiliate	March 26, 2020	Issuance of treasury stock, cash settlement		5,293			—		—			—		—		5,293	March 27, 2023 – March 26, 2027		38,452
Poong Young Yoon	Officer of Affiliate	March 25, 2021	Issuance of treasury stock, cash settlement		10,203			—		—			—		—		10,203	March 26, 2023 – March 25, 2026		50,276

(As of December 31, 2024)				(Unit: in Won and shares)
Grantee	Relationshipwith theCompany	Date ofGrant	Method ofGrant	InitiallyGranted			ChangesduringReportingPeriod					Total Changes				Unexercisedas of End ofReportingPeriod		ExercisePeriod	ExercisePrice
						Exercised			Canceled		Exercised			Canceled
Seong Ho Ha	Officer of Affiliate	February 22, 2019	Issuance of treasury stock, cash settlement		4,157			4,157		—			4,157		—		—	February 23, 2021 – February 22, 2024		53,052
Seong Ho Ha	Officer of Affiliate	March 26, 2020	Issuance of treasury stock, cash settlement		5,028			—		—			—		—		5,028	March 27, 2023 – March 26, 2027		38,452
Seong Ho Ha	Officer of Affiliate	March 25, 2021	Issuance of treasury stock, cash settlement		5,830			—		—			—		—		5,830	March 26, 2023 – March 25, 2026		50,276
Seong Ho Ha	Officer of Affiliate	March 25, 2022	Issuance of treasury stock, cash settlement		9,341			—		—			—		—		9,341	March 26, 2024 – March 25, 2027		56,860
Jin Won Kim	Officer of Affiliate	March 25, 2022	Issuance of treasury stock, cash settlement		10,629			—		—			—		—		10,629	March 26, 2024 – March 25, 2027		56,860
Sang Kyu Shin	Officer of Affiliate	March 25, 2021	Issuance of treasury stock, cash settlement		4,646			4,646		—			4,646		—		—	March 26, 2023 – March 25, 2026		50,276
Jae Seung Song	Officer of Affiliate	March 25, 2021	Issuance of treasury stock, cash settlement		8,047			—		—			—		—		8,047	March 26, 2023 – March 25, 2026		50,276
Byung Hoon Ryu	Officer of Affiliate	March 25, 2021	Issuance of treasury stock, cash settlement		3,796			—		—			—		—		3,796	March 26, 2023 – March 25, 2026		50,276
*	Two-thirds of the stock options granted to Young Sang Ryu on<br>March 25, 2022 were cancelled and replaced with PSUs.
---	---
**	Other: HyunA Lee, management consultant
---	---
C.	Equity Compensation Plans
---	---

(1) PSUs

Since 2023, the Company has been granting PSUs to certain of its and its subsidiaries’ directors (including the representative director) and executive officers in order to align management and shareholder interests and further align growth in the Company’s enterprise value with management compensation. Future performance targets are set when entering into the relevant stock compensation agreement, and the final number of shares to be received by each grantee, which will be settled out of the Company’s treasury shares, will be determined based on the achievement levels of such targets subject to approval by the Board of Directors.

PSUs ranging between 0% and 100% of a grantee’s annual salary is initially granted, and such units are converted into shares ranging between 0% and 200% of the grantee’s annual salary at the time of the PSU grant after a three-year vesting period based on the rates of increase in the Company’s share price and the KOSPI 200 Index. In consideration of the representative director’s role and importance, additional shares of up to 100% of the representative director’s annual salary at the time of the PSU grant may be granted in recognition of his or her outstanding achievements if the share price increases by more than 100% and such increase has outpaced the increase

in the KOSPI 200 Index by more than 50%. The validity of the PSUs is dependent on the grantee meeting a minimum term of incumbency under his or her title until the end of the year in which the PSUs were granted. The number of shares granted is subject to adjustments in cases of certain events including capital increases, stock splits, reverse stock splits and distribution of stock dividends.

(As of December 31, 2024)
Number of grantees	2023	194
	2024	213
Number of PSUs granted	2023	228,708
	2024	243,451
Shares granted in the year ended December 31, 2024		—
Cumulative shares granted as of December 31, 2024		—
Remaining shares to be granted		472,159

(2) Stock Appreciation Rights (“SARs”)

In 2021 and 2022, the Company granted SARs to certain of its executive officers as equity compensation following approval by the Board of Directors.

SARs entitle the grantee to receive in cash the product of (a) the difference between the base share price at the time of grant and the base share price after a three-year vesting period and (b) the number of shares of the Company’s common stock equal to 100% of a grantee’s annual salary.

If the grantee’s employment with the Company is terminated within two years of the grant date, no such payment is made. If a grantee’s employment with the Company is terminated at a date between two and three years after the grant date, settlement is made based on the share price on the termination date. The maximum payout is capped at 100% of the grantee’s annual salary at the time of grant.

(As of December 31, 2024)
Number of grantees	2022	72
Number of SARs granted	2022	338,525
Shares granted in the year ended December 31, 2024		—
Cumulative shares granted as of December 31, 2024		—
Remaining shares to be granted		— (to be paid out in cash)

(3) Shareholder Participation Program

Since 2021, pursuant to Article 342 of the Korean Commercial Code, the Company has been operating the “Shareholder Participation Program” as equity compensation in order to align management and shareholder interests and strengthen commitment to enhance the Company’s enterprise value.

All of the Company’s employees, including the representative director, are eligible to participate in the Shareholder Participation Program, under which the Company grants treasury shares equal to a portion of a participating employee’s bonus, upon individual application. The grant of treasury shares is subject to resolution by the Board of Directors.

The participating employee must be employed with the Company at the time of actual grant and there is no transfer restriction period. The number of treasury shares granted is subject to adjustments in cases of certain events including capital increases, stock splits, reverse stock splits and distribution of stock dividends.

(As of December 31, 2024)
Number of grantees	2022	2,005
	2023	1,863
	2024	1,743
Number of shares granted	2022	413,080
	2023	434,088
	2024	498,135
Shares granted in the year ended December 31, 2024		498,135
Cumulative shares granted as of December 31, 2024		1,345,303
Remaining shares to be granted		—

(4) Stock Grant

Since 2022, the Company has been granting portions of its independent directors’ remuneration in the form of shares in order to align the interests of the Board of Directors and shareholders. The grant of shares is subject to resolution by the Board of Directors.

The number of shares granted, which is in the form of treasury shares, is based on the independent director’s role and responsibility and the Company’s director compensation payment criteria. Transfer of such shares is restricted for three years following initial receipt. The number of treasury shares granted is subject to adjustments in cases of certain events including capital increases, stock splits, reverse stock splits and distribution of stock dividends.

(As of December 31, 2024)
Number of grantees	2022	5
	2023	5
	2024	5
Number of shares granted	2022	5,984
	2023	6,999
	2024	5,477
Shares granted in the year ended December 31, 2024		5,477
Cumulative shares granted as of December 31, 2024		18,460
Remaining shares to be granted		—

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

See Note [11] of the notes to the Company’s audited consolidated financial statements attached hereto for information relating to acquisitions and dispositions of investments in related parties.

3. Transactionswith the Largest Shareholder and Related Parties

(As of December 31, 2024)					(Unit: in millions of Won)
Counterparty	RelationshipwithCounterparty	Type	Transaction Period	Transaction Details	Transaction Amount
PS&Marketing	Subsidiary	Purchase	January 1, 2024 – December 31, 2024	Marketing fees, etc.	1,298,586

4. Related Party Transactions

See Note 36 of the notes to the Company’s audited consolidated financial statements attached hereto for information regarding related party transactions.

5. Other Related Party Transactions (excluding Transactions with the Largest Shareholder and Related Parties listed above)

A.	Provisional Payment and Loans (including loans on marketable securities)
(As of December 31, 2024)			(Unit: in millions of Won)
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
Name (Corporate name)	Relationship	Account category	Change details								Accruedinterest		Remarks
			Beginning		Increase		Decrease		Ending
Baekmajang and others	Agency	Long-term and short-term loans		69,621		108,326		121,314		56,633		—		—
Daehan Kanggun BCN Inc.	Investee	Long-term loans		22,147		—		—		22,147		—		—
B.	Other transactions
---	---

See Note 37 of the notes to the Company’s audited consolidated financial statements attached hereto for information regarding other related party transactions.

X.	OTHER INFORMATION RELATING TO THE PROTECTION OF INVESTORS

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

None.

2. Contingent Liabilities

A.	Legal Proceedings

[SK Telecom]

As of December 31, 2024, 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 December 31, 2024, there were 21 pending lawsuits against SK Broadband (aggregate amount of claims of Won 8,559 million).

B.	Other Contingent Liabilities and Guarantees for Payment

[SK Telecom]

None.

[SK Broadband]

As of December 31, 2024, SK Broadband has entered into revolving credit facilities with a limit of Won 170.1 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 1,098 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 telecommunications services with SK Telecom.

As of December 31, 2024, 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		30,747
Korea Content Financial Cooperative	Contract performance guarantee		44,657

[PS&Marketing]

As of December 31, 2024, 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		1,517

As of December 31, 2024, PS&Marketing has entered into the following credit facilities with financial institutions.

		(Unit: in millions of Won)
Financial Institution	Credit Limit	Details
Hana Bank	5,000	Revolving credit
Shinhan Bank	1,000	Revolving credit

[SK Telink]

As of December 31, 2024, SK Telink provided the following material payment guarantees to other parties.

				(Unit: in millions of Won)
Guarantor	Counterparty	Guaranteed Amount		Guarantee Details
SK Telink	Seoul Regional Public<br>Procurement Service<br>and others		200	Contract guarantee

As of December 31, 2024, 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 guarantee		689

[Home&Service]

As of December 31, 2024, 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	Payment guarantees		35

As of December 31, 2024, Home&Service has entered into the following credit facilities with financial institutions.

			(Unit: in millions of Won)
Financial Institution	Credit Limit		Details
Shinhan Bank		100	Revolving credit

[SK M&Service]

As of December 31, 2024, SK M&Service has entered into the following credit facilities with financial institutions.

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

As of December 31, 2024, 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
Seoul Guarantee Insurance Company	Transaction performance guarantee		4,559
Shinhan Bank	Transaction payment guarantee		700

[SK O&S]

As of December 31, 2024, SK O&S 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		50,000

[SK Stoa]

As of December 31, 2024, 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		1,240
Kookmin Bank	Revolving credit		18,000

3. Status of Sanctions, etc.

[SK Telecom]

A.	Sanctions by Investigative or Juridical Agencies

None.

B.	Sanctions by Administrative Agencies

(1) Sanctions by Financial Supervisory Authorities

None.

(2) Sanctions by the Korea Fair Trade Commission (the “KFTC”)

Date	Authority	Subject ofAction	Sanction	Reason and the Relevant Law	Status ofImplementation	Company’sMeasures
Aug. 2, 2023	KFTC	SK Telecom	Decision of KFTC Meeting (No. 2023-107)<br><br><br>• Correctional order (prohibition order against future actions and public announcement<br>order)<br> <br>• Fine of Won 16,829 million	Inappropriate advertising practice relating to promotion of transmission speed of wireless services that may mislead consumers (Article 3-1 of the Act on Fair Labeling and Advertising)	Filed an administrative appeal seeking cancellation of administrative disposition	Notwithstanding the appeal, strengthen compliance activities related to advertising practices
Jan. 29, 2024	KFTC	SK Telecom	Decision of KFTC Meeting (No. 2024-031)<br><br><br>• Correctional order (prohibition order against future actions)<br><br><br>• Fine of Won 1,428 million	Collusion by four companies including SK Telecom and its subsidiary SK O&S in the bidding price or standard price during negotiations on costs for renting locations that house their base stations (Former Article 19-1(1) of the MRFTA)	Decision confirmed; payment of fine completed	Strengthen compliance activities, including collusion prevention training
*	The KFTC conducted an investigation regarding the alleged collusion by telecommunications companies during the<br>reporting period, and a plenary session was held in March 2025.
---	---

(3) Sanctions by Tax Authorities

None.

(4) Sanctions by Other Administrative or Public Institutions

Date	Authority	Subject of Action	Sanction	Reason and the RelevantLaw	Status ofImplementation	Company’sMeasures
June 15, 2022	KCC	SK Telecom	Decision of 29th KCC Meeting of 2022<br><br><br>• Cessation of violating activities<br><br><br>• Announcement of correctional order	Unreasonably discriminatory practice based on subscription type and rate plan in providing gifts with values that are over or below 15% of the applicable limit in the Company’s sales of Internet-bundled plans (Article 50 of the<br>Telecommunications Business Act, Article 42-1 of Enforcement Decree and Article 4 of Standards for	Decision confirmed; implementation plan submitted and payment of fine completed	Immediately ceased such activities; improved fixed-line and wireless network gift registration system and service

Date	Authority	Subject of Action	Sanction	Reason and the RelevantLaw	Status ofImplementation	Company’sMeasures
			• Improvement of operating procedures including fixed-line and wireless gift<br>management system<br> <br>• Establishment and submission of recurrence prevention plan<br><br><br>• Fine of Won 632 million	Unfair User Discrimination in Providing Economic Benefits)		application process
Dec. 20, 2022	MSIT	SK Telecom	Correctional order (resubmission of the business report for FY2021 to MSIT with mandated revisions); Fine of Won 135 million	Error in the assets/profits/costs categories of the telecommunications business report for FY2021, the submission of which is mandated by the Telecommunication Account Settlement and Reporting Regulations and Telecommunications<br>Business Accounting Separation Criteria (Article 49, Article 53-2, Article 92-1 of the Telecommunications Business Act)	Submitted the revised business report for FY2021 (Jan. 3, 2023); paid the fine (Jan. 10, 2023)	Improve business procedures to prevent errors
Dec. 28, 2023	MSIT	SK Telecom	Correctional order (resubmission of the business report for FY2022 to MSIT with mandated revisions); Fine of Won 134 million	Error in the assets/profits/costs categories of the telecommunications business report for FY2022, the submission of which is mandated by the Telecommunication Account Settlement and Reporting Regulations and Telecommunications<br>Business Accounting Separation Criteria (Article 49, Article 53-2, Article 92-1 of the Telecommunications Business Act)	Submitted the revised business report for FY2022 (Jan. 11, 2024); paid the fine (Jan. 22, 2024)	Improve business procedures to prevent errors
May 22, 2024	KCC	SK Telecom	Decision of 26th KCC Meeting of 2024<br><br><br>• Cessation of violating activities<br><br><br>• Announcement of correctional order<br><br><br>• Improvement of business procedures including strengthening management of broadcasting and<br>telecommunications bundled products, and employee training<br> <br>• Submission of operating<br>procedures plan and report on compliance with correctional order<br> <br>• Fine of Won<br>420 million	False, exaggerated and deceptive advertising during the course of selling Internet and bundled services including advertising products as free and omitting specific conditions of use, which could mislead consumers about important<br>information relating to the bundled products and discounts. (Article 50-1(5) of the Telecommunications Business Act, Article 42-1 of Enforcement Decree and Article 3-1<br>of Standards for Prohibited Bundled Sales Practices)	Decision confirmed; implementation plan submitted and payment of fine completed	Immediately ceased such activities; improved operating procedures through clarifying responsible personnel, self-monitoring, strengthening of penalties for distributors and employee<br>training

Date	Authority	Subject of Action	Sanction	Reason and the RelevantLaw	Status ofImplementation	Company’sMeasures
Dec. 19, 2024	MSIT	SK Telecom	Correctional order (resubmission of the business report for FY2023 to MSIT with mandated revisions); Fine of Won 1,263 million	Error in the assets/profits/costs categories of the telecommunications business report for FY2023, the submission of which is mandated by the Telecommunication Account Settlement and Reporting Regulations and Telecommunications<br>Business Accounting Separation Criteria (Article 49, Article 53-2, Article 92-1 of the Telecommunications Business Act)	Submitted the revised business report for FY2023 (Dec. 30, 2024); paid the fine (Jan. 9, 2025)	Improve business procedures to prevent errors

[SK Broadband]

A.Sanctions by Investigative or Juridical Agencies

None.

B. Sanctions by Administrative Agencies

(1) Sanctions by Financial Supervisory Authorities

None.

(2) Sanctions by the KFTC

None.

(3) Sanctions by Tax Authorities

None.

(4) Sanctions by Other Administrative or Public Institutions

Date	Authority	Subject ofAction	Sanction	Amount ofMonetarySanction	Reason and the RelevantLaw	Status ofImplementation	Company’sMeasures
June 30, 2022	KCC	SK Broadband	Correctional order; Fine of Won 1.093 billion	Won 1.093 billion	Discriminatory practice in providing gifts to the Company’s users as part of its telecommunication bundle products (Article 50-1 of the Telecommunications Business Act and Article 42-1 of Enforcement Decree)	Submitted implementation plan; paid the fine (July 19, 2022)	Improve procedures; public announcement of correctional order

Date	Authority	Subject ofAction	Sanction	Amount ofMonetarySanction	Reason and the RelevantLaw	Status ofImplementation	Company’sMeasures
Dec. 20, 2022	MSIT	SK Broadband	Correctional order (resubmission of the business report for FY2021 to MSIT with mandated revisions); Fine of Won 97 million	Won 97 million	Error in the assets/profits/costs categories of the telecommunications business report for FY2021, the submission of which is mandated by the Telecommunication Account Settlement and Reporting Regulations and Telecommunications<br>Business Accounting Separation Criteria (Article 49 of the Telecommunications Business Act)	Submitted the revised business report for FY2021 (Jan. 3, 2023); paid the fine (Jan. 10, 2023)	Improve business procedures to prevent errors
Jan. 20, 2023	KCC; Communication office of the KCC	SK Broadband	Fine of Won 3.75 million	Won 3.75 million	Violated the Act on the Restriction of Transmission of Advertising Information for Commercial Purposes by transmitting advertising information against the recipient’s express refusal (Article<br>50-2 and 76 of the Act on Promotion of Information and Communications Network Utilization and Information and Article 74 and Attached Table 9 of its Enforcement Decree)	Paid the reduced amount of the fine (Won 3 million)	Improve relevant business procedures
Apr. 21, 2023	MSIT	SK Broadband	Fine of Won 5 million	Won 5 million	Violated the Act on Internet Multimedia Broadcasting Service by providing Internet multimedia broadcasting services without reporting changes to the terms and conditions (Article 15-1 of the<br>Act on Internet Multimedia Broadcasting Service)	Paid the reduced amount of the fine (Won 4 million)	Improve relevant business procedures
Jul. 12, 2023	Personal Information Protection Commission	SK Broadband	Fine of Won 1 million	Won 1 million	Negligence in the delegation and subcontracting of personal information processing tasks while outsourcing tasks related to the SK Competency Test (insufficient details in delegation documentation) (Article 26-1 of the Personal Information Protection Act)	Paid the reduced amount of the fine (Won 0.8 million)	Improve relevant business procedures

Date	Authority	Subject ofAction	Sanction	Amount ofMonetarySanction	Reason and the RelevantLaw	Status ofImplementation	Company’sMeasures
Dec. 28, 2023	MSIT	SK Broadband	Correctional order; Fine of Won 78 million	Won 78 million	Correctional order in connection with the telecommunications business report submitted pursuant to Article 49 of the Telecommunications Business Act	Submitted the revised business report for FY2022 (Jan. 11, 2024); paid the fine (Jan. 22, 2024)	Improve relevant business procedures to prevent errors
Feb. 27, 2024	KCC; Communication office of the KCC	SK Broadband	Fine of Won 7.5 million	Won 7.5 million	Violated the Act on the Restriction of Transmission of Advertising Information for Commercial Purposes by transmitting advertising while omitting required information (Article 50-4 and 76 of the Act on Promotion of Information and<br>Communications Network Utilization and Information and Article 74 and Attached Table 9 of its Enforcement Decree)	Paid the 20% reduced amount of the fine (Won 6 million)	Improve relevant business procedures
May 25, 2024	KCC	SK Broadband	Correctional order; Fine of Won 314 million	Won 314 million	Violated users’ rights through false, exaggerated and deceptive advertising of broadcasting and telecommunications bundled services (Article 50-1(5) of the Telecommunications Business Act<br>)	Submitted implementation plan; paid the fine	Improve procedures; public announcement of correctional order
Oct. 25, 2024	MSIT	SK Broadband	Fine of Won 15 million	Won 15 million	Violated the obligation to verify false display of phone numbers on private telephone exchanges related to prohibition of false display of phone numbers and user protection (Article 84-2 of<br>the Telecommunications Business Act)	Paid the 20% reduced amount of the fine (Won 12 million)	Improve relevant business procedures

Date	Authority	Subject ofAction	Sanction	Amount ofMonetarySanction	Reason and the RelevantLaw	Status ofImplementation	Company’sMeasures
Dec. 19, 2024	MSIT	SK Broadband	Correctional order; Fine of Won 82 million	Won 82 million	Correctional order in connection with the telecommunications business report submitted pursuant to Article 49 of the Telecommunications Business Act	Submitted the revised business report for FY2023 (Dec. 31, 2024); paid the fine (Jan. 8, 2025)	Improve relevant business procedures to prevent errors

4. Material Events Subsequent to the Reporting Period

(1) On February 11, 2025, the Board of Directors approved the annual dividend as follows:

Classification	Content
Dividend Amount	Cash dividend of Won 1,050 per share<br><br><br>(Total: Won 223,531 million)
Dividend Return Rate (based on market price)	1.9%
Dividend Record Date	February 28, 2025
Dividend Payment Date	In accordance with Article 464-2 of the Korean Commercial Code, within one month of the General Meeting of Shareholders

(2) Sale of PS&Marketing’s equity interest in SK M&Service

On February 25, 2025, PS&Marketing transferred its 70% equity interest (2,169,379 shares) in its consolidated subsidiary SK M&Service to Samgu Inc. for Won 58,515 million. Following the transfer, the Company held 30% of SK M&Service, which was excluded from the consolidation scope.

- Important Dates

Classification	Date
Date of Resolution by the Board of Directors	December 18, 2024
Date of Transfer	February 25, 2025

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:	Vice President

Date: April 16, 2025

SK TELECOM CO., LTD. AND SUBSIDIARIES

Consolidated Financial Statements

For each of the years ended December 31, 2024 and 2023

(With the Independent Auditor’s Report Thereon)

Contents

	Page
Independent Auditor’s Report
Consolidated Financial Statements
Consolidated Statements of Financial Position		1
Consolidated Statements of Income		3
Consolidated Statements of Comprehensive Income		4
Consolidated Statements of Changes in Equity		5
Consolidated Statements of Cash Flows		6
Notes to the Consolidated Financial Statements		8
Report on audit of Internal Control over FinancialReporting
Management’s Annual Report on Internal Control over Financial Reporting

Ernst & Young Han Young<br><br><br>Taeyoung Building, 111, Yeouigongwon-ro,<br> <br>Yeongdeungpo-gu, Seoul<br>07241 Korea<br> <br><br> <br>Tel: +82237876600<br><br><br>Fax: +8227835890<br> <br>ey.com/kr

Independent Auditor’s Report

(English Translation of a Report Originally Issued in Korean)

The Shareholders and Board of Directors

SK Telecom Co., Ltd.

Opinion

We have audited the accompanying consolidated financial statements of SK Telecom Co., Ltd. and its subsidiaries (collectively referred to as the “Group”) which comprise the consolidated statements of financial position as of December 31, 2024 and 2023, and the consolidated statements of income, comprehensive income, changes in equity and cash flows for each of the two years in the period ended December 31, 2024, and notes to the consolidated financial statements, including a summary of material accounting policies.

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as of December 31, 2024 and 2023, and its consolidated financial performance and its consolidated cash flows for each of the two years in the period ended December 31, 2024 in accordance with International Financial Reporting Standards as adopted by the Republic of Korea (“KIFRS”).

We also have audited the Group’s internal control over financial reporting as of December 31, 2024, based on the criteria established in Conceptual Framework for Designing and Operating Internal Control over Financial Reporting in accordance with the Korean Standards on Auditing (“KSA”) issued by the Operating Committee of internal control over financial reporting, and our report dated March 10, 2025 expressed an unqualified opinion thereon.

Basis for Opinion

We conducted our audits in accordance with KSA. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the consolidated financial statements in the Republic of Korea, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements of the current period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. For each matter below, our description of how our audit addressed the matter is provided in that context.

1.	Cut-off of revenue from wireless services.

As described in notes 3 (21) and 4 (2) to the consolidated financial statements, the Group’s revenue from the wireless services is recognized based on data from a complex array of information technology systems which process a significant volume of transactions with its customers. Furthermore, the transactions involve a variety of contractual terms from new subscriptions to deactivations or churn, and changes of rate plans during the period. Therefore, we have identified timing of revenue recognition related to the Group’s wireless services as a key audit matter. Related revenue from the wireless services amounted to ~~W~~10,401,565 million in 2024.

LOGO

The primary procedures we performed to address this key audit matter included:

•	Inspecting major contracts with subscribers to assess whether the Group’s revenue recognition policies based<br>on the terms and conditions as set out in the contracts, are consistent with reference to the requirements of KIFRS 1115;
•	Testing internal controls relating to the timing of revenue recognition for the wireless services; and<br>
---	---
•	Evaluating the appropriateness of the timing of revenue recognition by recalculating the prorated revenue based<br>on the subscribed rate plan and comparing it with the billing information.
---	---
2.	Impairment assessment of goodwill for the fixed-line telecommunication services cash generating unit
---	---

As described in notes 3 (10) and 15 to the consolidated financial statements, the Group assesses impairment of goodwill allocated to a cash generating unit (“CGU”), at least, annually or when there is an indication of possible impairment by comparing the carrying amount of the CGU to its recoverable amount based on value-in-use (“VIU”). The amount of goodwill allocated to the fixed-line telecommunication services CGU is ~~W~~764,082 million as of December 31, 2024.

In carrying out the goodwill impairment assessment, the Group compared the carrying amount of the fixed-line telecommunication services CGU and its value in use (“VIU”) based on discounted cash flow forecasts. We have identified the goodwill impairment assessment for the fixed-line telecommunication services CGU as a key audit matter due to the inherent uncertainties and significant judgement involved in management’s estimates around the major assumptions such as estimates of future operating revenue, perpetual growth rate and discount rate, all of which have a significant impact on the determination of the VIU.

The primary audit procedures we have performed for this key audit matter include:

•	Assessing the competence and objectivity of the external specialist utilized by management;<br>
•	Evaluating the appropriateness of the valuation method and assumptions applied by management by involving our<br>internal specialist;
---	---
•	Performing a sensitivity analysis for both the discount rate and the perpetual growth rate applied to the<br>discounted cash flow forecasts to assess the impact of changes in these key assumptions on the conclusion reached by management in its impairment assessment;
---	---
•	Evaluating the reasonableness of management’s future cash flow forecasts by comparison with financial<br>budgets approved by management; and
---	---
•	Performing a retroactive assessment of the prior periods’ cash flow forecasts by comparison with the actual<br>results.
---	---

Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with KIFRS, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, management is responsible for assessing the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Group’s financial reporting process.

LOGO

Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with KSA will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.

As part of an audit in accordance with KSA, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

•	Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to<br>fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is<br>higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
•	Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are<br>appropriate in the circumstances.
---	---
•	Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and<br>related disclosures made by management.
---	---
•	Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on<br>the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are<br>required to draw attention in our auditor’s report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to<br>the date of our auditor’s report. However, future events or conditions may cause the Group to cease to continue as a going concern.
---	---
•	Evaluate the overall presentation, structure and content of the consolidated financial statements, including the<br>disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
---	---
•	Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business<br>activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.<br>
---	---

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

LOGO

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

The engagement partner on the audit resulting in this independent auditor’s report is Yoo, Jung Ho.

March 10, 2025

This report is effective as of March 10, 2025, the independent auditor’s report date. Accordingly, certain material subsequent events or circumstances may have occurred during the period from the date of independent auditor’s report date to the time this report is used. Such events and circumstances could significantly affect the accompanying consolidated financial statements and may result in modifications to this report.

SK TELECOM CO., LTD. AND ITS SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023

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

Ryu,Young-Sang

Chief Executive Officer

SK TELECOMCO., LTD.

SK TELECOM CO., LTD. and its Subsidiaries

Consolidated Statements of Financial Position

As of December 31, 2024 and 2023

(In millions of won)		December 31, 2024		December 31, 2023
Assets
Current Assets:
Cash and cash equivalents	5,34,35	~~W~~	2,023,721		1,454,978
Short-term financial instruments	5,34,35		323,890		294,934
Accounts receivable – trade, net	6,34,35,36		1,989,306		1,978,532
Short-term loans, net	6,34,35,36		65,205		78,129
Accounts receivable – other, net	6,34,35,36,37		369,192		344,350
Contract assets	8,35		90,385		89,934
Prepaid expenses	7		1,945,610		1,953,769
Prepaid income taxes	31		21		161
Derivative financial assets	21,34,35,38		119,500		8,974
Inventories, net	9		209,783		179,809
Assets held for sale	40		174,839		10,515
Advanced payments and others	6,34,35		165,230		191,517
		****	7,476,682	****	6,585,602
Non-Current Assets:
Long-term financial instruments	5,34,35		373		375
Long-term investment securities	10,34,35		1,877,922		1,679,384
Investments in associates and joint ventures	11		2,341,827		1,915,012
Investment property, net	13		26,611		34,812
Property and equipment, net	12,14,36,37		12,617,394		13,006,196
Goodwill	15		2,072,493		2,075,009
Intangible assets, net	16		2,194,871		2,861,137
Long-term contract assets	8,35		46,352		39,837
Long-term loans, net	6,34,35,36		34,446		30,455
Long-term accounts receivable – other, net	6,34,35,36,37		173,252		312,531
Long-term prepaid expenses	7		1,108,406		1,086,107
Guarantee deposits, net	6,34,35,36		155,875		156,863
Long-term derivative financial assets	21,34,35,38		221,608		139,560
Deferred tax assets	31		—		11,609
Defined benefit assets	20		154,329		170,737
Other non-current assets	6,34,35		12,814		14,001
		****	23,038,573	****	23,533,625
Total Assets		~~W~~	30,515,255	****	30,119,227

(Continued)

SK TELECOM CO., LTD. and its Subsidiaries

Consolidated Statements of Financial Position, Continued

As of December 31, 2024 and 2023

(In millions of won)		December 31, 2024			December 31, 2023
Liabilities and Shareholders’ Equity
Current Liabilities:
Accounts payable – trade	34,35,36	~~W~~	126,508			139,876
Accounts payable – other	34,35,36,37		2,798,978			1,913,006
Withholdings	34,35,36		928,679			802,506
Contract liabilities	8		168,194			155,576
Accrued expenses	25,34,35		1,522,750			1,439,786
Income tax payable	31		243,564			142,496
Provisions	19,39		50,016			38,255
Short-term borrowings	17,34,35,38		100,000			—
Current portion of long-term debt, net	17,34,35,38		2,460,109			1,621,844
Current portion of long-term payables – other	18,34,35,38		367,765			367,770
Lease liabilities	34,35,36,38		351,363			372,826
Liabilities held for sale	40		106,352			39
		****	9,224,278	****	****	6,993,980	****
Non-Current Liabilities:
Debentures, excluding current portion, net	17,34,35,38		6,363,646			7,106,299
Long-term borrowings, excluding current portion, net	17,34,35,38		203,125			315,578
Long-term payables – other	18,34,35,38		539,955			892,683
Long-term lease liabilities	34,35,36,38		1,286,588			1,238,607
Long-term contract liabilities	8		61,512			56,917
Defined benefit liabilities	20		2,086			—
Long-term derivative financial liabilities	21,34,35,38		3,437			305,088
Long-term provisions	19		70,044			83,169
Deferred tax liabilities	31		851,200			832,236
Other non-current liabilities	34,35,36		81,750			66,271
		****	9,463,343	****	****	10,896,848	****
Total Liabilities		****	18,687,621	****	****	17,890,828	****
Shareholders’ Equity:
Share capital	1,22		30,493			30,493
Capital surplus and others	22,23,24,25		(11,954,936	)		(11,828,644	)
Retained earnings	26		22,976,127			22,799,981
Reserves	27		646,943			387,216
Equity attributable to owners of the Parent Company			11,698,627			11,389,046
Non-controlling interests			129,007			839,353
Total Shareholder’s Equity		****	11,827,634	****	****	12,228,399	****
Total Liabilities and Shareholder’s Equity		~~W~~	30,515,255	****	****	30,119,227	****

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

SK TELECOM CO., LTD. and its Subsidiaries

Consolidated Statements of Income

For the years ended December 31, 2024 and 2023

(In millions of won, except for earnings per share)		2024			2023
Operating revenue:	4,36
Revenue		~~W~~	17,940,609			17,608,511
Operating expenses:	36
Labor			2,725,765			2,488,245
Commission	7		5,564,289			5,549,899
Depreciation and amortization	4		3,560,374			3,614,766
Network interconnection			692,881			678,459
Leased lines			265,518			275,477
Advertising			186,340			235,769
Rent			136,753			142,356
Cost of goods sold	9		1,326,159			1,266,357
Others	28		1,659,121			1,603,979
			16,117,200			15,855,307
Operating profit:	4	****	1,823,409	****	****	1,753,204	****
Finance income	4,30		355,035			248,376
Finance costs	4,30		(605,919	)		(527,401	)
Gain relating to investments in subsidiaries, associates and joint ventures, net	4,11		321,787			10,928
Other non-operating income	4,29		72,288			50,366
Other non-operating expenses	4,29		(204,835	)		(47,294	)
Profit before income tax	4	****	1,761,765	****	****	1,488,179	****
Income tax expense	31		374,670			342,242
Profit for the year		~~W~~	1,387,095	****	****	1,145,937	****
Attributable to:
Owners of the Parent Company		~~W~~	1,250,155			1,093,611
Non-controlling interests			136,940			52,326
Earnings per share	32
Basic earnings per share (in won)		~~W~~	5,780			4,954
Diluted earnings per share (in won)			5,765			4,950

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

SK TELECOM CO., LTD. and its Subsidiaries

Consolidated Statements of Comprehensive Income

For the years ended December 31, 2024 and 2023

(In millions of won)		2024			2023
Profit for the year		~~W~~	1,387,095	****	****	1,145,937	****
Other comprehensive income (loss):
Items that will not be reclassified subsequently to profit or loss, net of taxes:
Remeasurement of defined benefit liabilities assets (liabilities)	20		(25,905	)		1,853
Valuation gain (loss) on financial assets at fair value through other comprehensive<br>income	27,30		11,253			(18,842	)
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	11,27		132,581			9,225
Net change in unrealized fair value of derivatives	21,27,30		(6,573	)		(17,460	)
Foreign currency translation differences for foreign operations	27		49,420			1,257
Other comprehensive income (loss) for the year, net of taxes		****	160,776	****	****	(23,967	)
Total comprehensive income		~~W~~	1,547,871	****	****	1,121,970	****
Total comprehensive income attributable to:
Owners of the Parent Company		~~W~~	1,409,090			1,072,785
Non-controlling interests			138,781			49,185

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

SK TELECOM CO., LTD. and its Subsidiaries

Consolidated Statements of Changes in Equity

For the years ended December 31, 2024 and 2023

(In millions of won)
			Attributable to owners of the Parent Company
	Note		Share capital		Capital surplus<br>(deficit) andothers			Retainedearnings			Reserves			Sub-total			Non-controlling<br>interests			Total equity
Balance as of January 1, 2023			~~W~~	30,493	****	(11,567,117	)	****	22,463,711	****	****	391,233	****	****	11,318,320	****	****	836,876	****	****	12,155,196	****
Total comprehensive income (loss):
Profit for the year				—		—			1,093,611			—			1,093,611			52,326			1,145,937
Other comprehensive loss:		11,20,21,27,30		—		—			(16,809	)		(4,017	)		(20,826	)		(3,141	)		(23,967	)
				—		—			1,076,802			(4,017	)		1,072,785			49,185			1,121,970
Transactions with owners:
Annual dividends		33		—		—			(180,967	)		—			(180,967	)		(50,557	)		(231,524	)
Interim dividends		33		—		—			(542,282	)		—			(542,282	)		—			(542,282	)
Share option		25		—		7,157			—			—			7,157			10,463			17,620
Interest on hybrid bonds		24		—		—			(17,283	)		—			(17,283	)		—			(17,283	)
Redemption of hybrid bonds		24		—		(400,000	)		—			—			(400,000	)		—			(400,000	)
Issuance of hybrid bonds		24		—		398,509			—			—			398,509			—			398,509
Transactions of treasury shares		23		—		(265,120	)		—			—			(265,120	)		—			(265,120	)
Changes in ownership in subsidiaries, etc.				—		(2,073	)		—			—			(2,073	)		(6,614	)		(8,687	)
				—		(261,527	)		(740,532	)		—			(1,002,059	)		(46,708	)		(1,048,767	)
Balance as of December 31, 2023			~~W~~	30,493	****	(11,828,644	)	****	22,799,981	****	****	387,216	****	****	11,389,046	****	****	839,353	****	****	12,228,399	****
Balance as of January 1, 2024			~~W~~	30,493	****	(11,828,644	)	****	22,799,981	****	****	387,216	****	****	11,389,046	****	****	839,353	****	****	12,228,399	****
Total comprehensive income (loss):
Profit for the year				—		—			1,250,155			—			1,250,155			136,940			1,387,095
Other comprehensive income (loss):		11,20,21,27,30		—		—			(100,792	)		259,727			158,935			1,841			160,776
				—		—			1,149,363			259,727			1,409,090			138,781			1,547,871
Transactions with owners:
Annual dividends		33		—		—			(223,335	)		—			(223,335	)		(50,927	)		(274,262	)
Interim dividends		33		—		—			(530,082	)		—			(530,082	)		—			(530,082	)
Share option		25		—		5,173			—			—			5,173			402			5,575
Interest on hybrid bonds		24		—		—			(19,800	)		—			(19,800	)		—			(19,800	)
Acquisition and disposal of treasury shares		23		—		9,154			—			—			9,154			—			9,154
Retirement of treasury shares		23		—		200,000			(200,000	)		—			—			—			—
Changes in consolidation scope				—		—			—			—			—			(902	)		(902	)
Changes in ownership in subsidiaries, etc.				—		(340,619	)		—			—			(340,619	)		(797,700	)		(1,138,319	)
				—		(126,292	)		(973,217	)		—			(1,099,509	)		(849,127	)		(1,948,636	)
Balance as of December 31, 2024			~~W~~	30,493	****	(11,954,936	)	****	22,976,127	****	****	646,943	****	****	11,698,627	****	****	129,007	****	****	11,827,634	****

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

SK TELECOM CO., LTD. and its Subsidiaries

Consolidated Statements of Cash Flows

For the years ended December 31, 2024 and 2023

(In millions of won)		2024			2023
Cash flows from operating activities:
Cash generated from operating activities:
Profit for the year		~~W~~	1,387,095			1,145,937
Adjustments for income and expenses	38		4,313,213			4,546,338
Changes in assets and liabilities related to operating activities	38		(108,813	)		(274,163	)
			5,591,495			5,418,112
Interest received			74,787			60,134
Dividends received			43,536			50,899
Interest paid			(356,081	)		(341,488	)
Income tax paid			(266,452	)		(240,452	)
Net cash provided by operating activities		****	5,087,285	****	****	4,947,205	****
Cash flows from investing activities:
Cash inflows from investing activities:
Collection of short-term loans			131,823			136,242
Proceeds from disposals of long-term investment securities			51,741			100,817
Proceeds from disposals of investments in associates and joint ventures			77,974			4,950
Proceeds from disposals of assets held for sale			13,031			1,353
Proceeds from disposals of property and equipment			47,078			12,900
Proceeds from disposals of intangible assets			32,685			4,428
Collection of long-term loans			1,680			1,547
Decrease in deposits			5,758			5,922
Proceeds from settlement of derivatives			492			1,452
Government grants received			—			2,967
			362,262			272,578
Cash outflows for investing activities:
Increase in short-term financial instruments, net			(26,581	)		(51,421	)
Increase in short-term loans			(110,810	)		(130,041	)
Increase in long-term loans			(14,118	)		(11,602	)
Acquisitions of long-term investment securities			(222,568	)		(324,997	)
Cash outflows from settlement of derivatives			(112,903	)		—
Acquisitions of investments in associates and joint ventures			(8,014	)		(17,656	)
Acquisitions of property and equipment			(2,487,360	)		(2,973,882	)
Acquisitions of intangible assets			(71,856	)		(106,761	)
Increase in deposits			(15,525	)		(6,848	)
Cash decrease due to changes in<br><br><br>consolidation scope			(4,354	)		(2,275	)
			(3,074,089	)		(3,625,483	)
Net cash used in investing activities		~~W~~	(2,711,827)	****	****	(3,352,905	)

(Continued)

SK TELECOM CO., LTD. and its Subsidiaries

Consolidated Statements of Cash Flows, Continued

For the years ended December 31, 2024 and 2023

(In millions of won)		2024			2023
Cash flows from financing activities:				****
Cash inflows from financing activities:
Proceeds from issuance of debentures			1,236,475			1,785,108
Proceeds from long-term borrowings			200,000			49,950
Proceeds from short-term borrowings, net			100,000			—
Proceeds from issuance of hybrid bonds			—			398,509
Cash inflows from settlement of derivatives			—			183,090
Transactions with non-controlling shareholders			15,717			160
			1,552,192			2,416,817
Cash outflows for financing activities:
Repayments of short-term borrowings, net			—			(142,998	)
Repayments of long-term payables – other			(369,150	)		(400,245	)
Repayments of debentures			(1,235,750	)		(1,869,190	)
Repayments of long-term borrowings			(402,500	)		(125,000	)
Redemption of hybrid bonds			—			(400,000	)
Payments of dividends			(804,317	)		(773,806	)
Payments of interest on hybrid bonds			(19,800	)		(17,283	)
Repayments of lease liabilities			(381,347	)		(402,465	)
Acquisition of treasury shares			(15,788	)		(285,487	)
Transactions with non-controlling shareholders			(133,393	)		(21,333	)
			(3,362,045	)		(4,437,807	)
Net cash used in financing activities	38	****	(1,809,853	)	****	(2,020,990	)
Net increase (decrease) in cash and cash equivalents		****	565,605	****	****	(426,690	)
Cash and cash equivalents at beginning of the year			1,454,978			1,882,291
Effects of exchange rate changes on cash and cash equivalents			26,124			(623	)
Cash and cash equivalents included in assets held for sale			(22,986	)		—
Cash and cash equivalents at end of the year		~~W~~	2,023,721	****	****	1,454,978	****

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

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

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

SK Telecom Co., Ltd. (the “Parent Company”) was incorporated on March 29, 1984, under the laws of the Republic of Korea (“Korea”) to provide cellular telephone communication 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 are listed on the Stock Market of Korea Exchange, and its depositary receipts (DRs) are listed on the New York Stock Exchange. As of December 31, 2024, the Parent Company’s total issued shares are held by the following shareholders:


SK Inc.	65,668,397	30.57
National Pension Service	18,878,265	8.79
Institutional investors and other shareholders	124,493,193	57.96
Kakao Investment Co., Ltd.	3,846,487	1.79
Treasury shares	1,903,711	0.89
	214,790,053	100.00

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

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

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

The list of consolidated subsidiaries as of December 31, 2024 and 2023 is as follows:

				*Ownership (%)(1)**
Subsidiary		Location	Primary business	Dec. 31,<br>2024		Dec. 31,2023
Subsidiaries<br><br><br>owned by the<br><br><br>Parent Company	SK Telink Co., Ltd.	Korea	International telecommunication and Mobile Virtual Network Operator Service		100.0		100.0
	NATE Communications Corporation<br> <br>(Formerly, SK<br>Communications<br> <br>Co., Ltd.)	Korea	Internet website services		100.0		100.0
	SK Broadband Co., Ltd.(*2)	Korea	Fixed-line telecommunication services		99.1		74.4
	PS&Marketing Corporation	Korea	Communications device retail business		100.0		100.0
	SERVICE ACE Co., Ltd.	Korea	Call center management service		100.0		100.0
	SERVICE TOP Co., Ltd.	Korea	Call center management service		100.0		100.0
	SK O&S Co., Ltd.	Korea	Base station maintenance service		100.0		100.0
	SK Telecom China Holdings Co., Ltd.	China	Investment (Holdings company)		100.0		100.0
	SK Global Healthcare<br> <br>Business Group<br>Ltd.(*3)	Hong Kong	Investment		—		100.0
	YTK Investment Ltd.	Cayman Islands	Investment		100.0		100.0
	Atlas Investment	Cayman Islands	Investment		100.0		100.0
	SK Telecom Americas, Inc.	USA	Information gathering and consulting		100.0		100.0
	Quantum Innovation Fund I(*3)	Korea	Investment		—		59.9
	Happy Hanool Co., Ltd.	Korea	Service		100.0		100.0
	SK stoa Co., Ltd.	Korea	Other telecommunication retail business		100.0		100.0
	SAPEON Inc.	USA	Investment (Holdings company)		62.5		62.5
	Astra AI Infra LLC(*3)	USA	Investment		100.0		—
Subsidiaries owned by SK Broadband Co., Ltd.	Home & Service Co., Ltd.	Korea	Operation of information and communication facility		100.0		100.0
	Media S Co., Ltd.	Korea	Production and supply services of broadcasting programs		100.0		100.0
Subsidiary owned by PS&Marketing Corporation	SK m&service Co., Ltd.	Korea	Database and internet website service		100.0		100.0
Subsidiary owned by SK Telecom Americas, Inc.	Global AI Platform Corporation	USA	Software development and supply business		100.0		100.0
Subsidiary owned by Global AI Platform Corporation	Global AI Platform Corporation<br> <br>Korea	Korea	Software development and supply business		100.0		100.0
Subsidiary owned by Quantum Innovation Fund I	PanAsia Semiconductor<br> <br>Materials<br>LLC.(*3)	Korea	Investment		—		66.4
Subsidiary owned by SAPEON Inc.	Rebellions Inc.<br> <br>(Formerly, SAPEON Korea<br>Inc.)(*3)	Korea	Manufacturing non-memory and other electronic integrated circuits		—		100.0
Others(*4)	SK Telecom Innovation Fund,<br><br><br>L.P.	USA	Investment		100.0		100.0
	SK Telecom China Fund I L.P.(*3)	Cayman Islands	Investment		—		100.0

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

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

The list of consolidated subsidiaries as of December 31, 2024 and 2023 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)	In relation to the merger of SK Broadband Co., Ltd. during the year ended December 31, 2020, the Parent<br>Company has entered into a shareholders’ agreement with the shareholders of the acquirees on November 13, 2024. Pursuant to the shareholders’ agreement, the Parent Company entered into a share purchase agreement to purchase 24.76% of<br>the shares of SK Broadband Co., Ltd. for ~~W~~1,145,870 million. The Parent Company has determined that it currently has ownership of the shares of SK Broadband Co., Ltd. for which the above contract was concluded, and accounted for the<br>ownership of the shares in the subsidiary accordingly.
---	---
(*3)	Details of changes in the consolidation scope for the year ended December 31, 2024 are presented in note<br>1-(4).
---	---
(*4)	Others are owned by Atlas Investment and another subsidiary of the Parent Company.
---	---

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

1.	Reporting Entity, Continued
(3)	Condensed financial information of subsidiaries
---	---
1)	Condensed financial information of significant consolidated subsidiaries as of and for the year ended<br>December 31, 2024 is as follows:
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---	---	---
	As of December 31, 2024						2024
Subsidiary	Total assets		Total liabilities		Total equity		Revenue		Profit
SK Telink Co., Ltd.		~~W~~ 210,962		63,558		147,404		341,838		14,323
SK Broadband Co., Ltd.		6,806,280		3,760,426		3,045,854		4,415,270		263,967
PS&Marketing Corporation		448,887		218,885		230,002		1,382,361		63
SERVICE ACE Co., Ltd.		74,676		49,818		24,858		191,376		2,585
SERVICE TOP Co., Ltd.		60,073		42,479		17,594		166,699		969
SK O&S Co., Ltd.		130,618		94,807		35,811		351,721		689
Home & Service Co., Ltd.		139,664		107,379		32,285		495,546		3,947
SK stoa Co., Ltd.		116,785		56,192		60,593		302,332		4,354
SK m&service Co., Ltd.		164,772		100,230		64,542		246,999		220
2)	Condensed financial information of significant consolidated subsidiaries as of and for the year ended<br>December 31, 2023 is as follows:
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---	---	---	---
	As of December 31, 2023						2023
Subsidiary	Total assets		Total liabilities		Total equity		Revenue		Profit (loss)
SK Telink Co., Ltd.		~~W~~ 213,920		65,049		148,871		309,091		17,761
SK Broadband Co., Ltd.		6,442,611		3,323,156		3,119,455		4,281,932		213,905
PS&Marketing Corporation		451,549		224,042		227,507		1,353,321		4,681
SERVICE ACE Co., Ltd.		83,395		54,888		28,507		197,598		2,822
SERVICE TOP Co., Ltd.		71,196		47,641		23,555		178,423		1,738
SK O&S Co., Ltd.		140,942		98,346		42,596		345,617		2,614
Home & Service Co., Ltd.		165,667		112,025		53,642		490,094		1,297
SK stoa Co., Ltd.		94,041		37,253		56,788		301,496		(1,427	)
SK m&service Co., Ltd.		153,660		88,195		65,465		247,479		1,253

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

1.	Reporting Entity, Continued
(4)	Changes in subsidiaries
---	---
1)	Details of subsidiary that was newly included in consolidation scope for the year ended December 31, 2024<br>is as follows:
---	---
Subsidiary	Reason
---	---
Astra AI Infra LLC	Established by the Parent Company
2)	Details of subsidiaries that were excluded from consolidation scope for the year ended December 31, 2024<br>is as follows:
---	---
Subsidiary	Reason
---	---
SK Global Healthcare Business Group Ltd.	Liquidation
Quantum Innovation Fund I	Liquidation
PanAsia Semiconductor Materials LLC.	Liquidation
Rebellions Inc.<br> <br>(Formerly, SAPEON Korea<br>Inc.)	Loss of control
SK Telecom China Fund I L.P.	Liquidation

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

1.	Reporting Entity, Continued
(5)	The financial information of material non-controlling interests of the Group as of and for the years ended<br>December 31, 2024 and 2023 are as follows:
---	---
1)	2024
---	---

As of December 31, 2023 the material non-controlling interest of the Group was attributed to SK Broadband Co., Ltd. The non-controlling interest of SK Broadband Co., Ltd. decreased during the year ended December 31, 2024, therefore, there are no material non-controlling interests of the Group as of December 31, 2024.

2)	2023
(In millions of won)
---	---	---	---
	*SK Broadband Co., Ltd.()**
Ownership of non-controlling interests (%)		25.4
	As of December 31, 2023
Current assets	~~W~~	1,388,965
Non-current assets		5,214,315
Current liabilities		(1,388,317	)
Non-current liabilities		(1,988,989	)
Net assets		3,225,974
Carrying amount of non-controlling interests		819,592
	2023
Revenue	~~W~~	4,274,747
Profit for the year		202,890
Total comprehensive income		183,499
Profit attributable to non-controlling interests		51,448
Net cash provided by operating activities	~~W~~	1,110,847
Net cash used in investing activities		(1,064,434	)
Net cash used in financing activities		(60,254	)
Effects of exchange rate changes on cash and cash equivalents		9
Net decrease in cash and cash equivalents		(13,832	)
Dividends paid to non-controlling interests for the year ended December 31, 2023	~~W~~	50,557
(*)	The above condensed financial information is the consolidated financial information of the subsidiary and<br>reflects fair value adjustments as a result of the business combination.
---	---

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

2.	Basis of Preparation

These consolidated financial statements were prepared in accordance with International Financial Reporting Standards as adopted by the Republic of Korea (“KIFRS”), as prescribed in the Act on External Audits of Stock Companies of Korea. The accompanying consolidated financial statements have been translated into English from Korean financial statements. In the event of any differences in interpreting the financial statements or the independent auditor’s report thereon, Korean version, which is used for regulatory reporting purposes, shall prevail.

The accompanying consolidated financial statements comprise the Group and the Group’s investments in associates and joint ventures.

The consolidated financial statements were authorized for issuance by the Board of Directors on February 11, 2025, which may be subject to final amendments and approval at the shareholder’s meeting to be held on March 26, 2025.

(1)	Basis of measurement

The consolidated financial statements have been prepared on the historical cost basis, except for the following material items in the consolidated statement of financial position:

•	derivative financial instruments measured at fair value;
•	financial instruments measured at fair value through profit or loss (“FVTPL”);
---	---
•	financial instruments measured at fair value through other comprehensive income (“FVOCI”);<br>
---	---
•	liabilities measured at fair value for cash-settled share-based payment arrangement; and
---	---
•	liabilities (assets) for defined benefit plans recognized at the total present value of defined benefit<br>obligations less the fair value of plan assets.
---	---
(2)	Functional and presentation currency
---	---

Financial statements of Group entities within the Group are prepared in functional currency of each group entity, which is the currency of the primary economic environment in which each entity operates. Consolidated financial statements of the Group are presented in Korean won, which is the Parent Company’s functional and presentation currency.

(3)	Use of estimates and judgments

The preparation of the 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.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period prospectively.

1)	Critical judgments

Information about critical judgments in applying accounting policies that have the most significant effects on the amounts recognized in the consolidated financial statements is included in notes for the following areas: consolidation (whether the Group has de facto control over an investee), and determination of stand-alone selling prices.

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

2.	Basis of Preparation, Continued
(3)	Use of estimates and judgments, Continued
---	---
2)	Assumptions and estimation uncertainties
---	---

Information about assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment within the next financial year are included in the following notes: loss allowance (notes 6 and 35), estimated useful lives of costs to obtain a contract (notes 8), property and equipment and intangible assets (notes 3 (7), (8), 12 and 16), impairment of goodwill (notes 3 (10) and 15), recognition of provision (notes 3 (15) and 19), measurement of defined benefit liabilities (assets) (notes 3 (14) and 20), transaction of derivative instruments (notes 3 (6) and 21) and recognition of deferred tax assets (liabilities) (notes 3 (23) and 31).

3)	Fair value measurement

The Group’s accounting policies and disclosures require the measurement of fair values, for both a number of financial and non-financial assets and liabilities. The Group has an 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;
•	Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability,<br>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 inputs).<br>
---	---

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 21 and note 35.

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

3.	Material Accounting Policies

The material accounting policies applied by the Group in the preparation of its consolidated financial statements in accordance with KIFRS are included below. Except for certain standards and amendments which are effective for annual periods beginning on or after January 1, 2024, the material accounting policies applied by the Group in these 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, 2023. The Group has not early adopted any standards, interpretations or amendments that have been issued but are not yet effective.

The new and amended standards and interpretations that are effective for annual periods beginning on or after January 1, 2024 are as follows. These amended standards had no material impact on the Group’s consolidated financial statements.

•	Classification of Liabilities as Current or Non-current, Non-current Liabilities with Covenants (Amendments to<br>KIFRS 1001)
•	Disclosures of Information on Supplier Finance Arrangements (Amendments to KIFRS 1007 and KIFRS 1107)<br>
---	---
•	Lease Liability in a Sale and Leaseback (Amendments to KIFRS 1116)
---	---
•	Disclosures of Virtual Assets (Amendments to KIFRS 1001)
---	---
(1)	Operating segments
---	---

An operating segment is a component of the Group that engages in business activities from which it may earn revenues and incur expenses, including revenues and expenses that relate to transactions with any of the Group’s other components. The Group’s operating segments have been determined to be each business unit, for which the Group generates separately identifiable financial information that is regularly reported to the chief operating decision maker for the purpose of resource allocation and assessment of segment performance. The Group has three reportable segments as described in note 4. Segment results that are reported to the chief operating decision maker include items directly attributable to a segment as well as those that can be allocated on a reasonable basis.

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

3.	Material Accounting Policies, Continued
(2)	Basis of consolidation
---	---
1)	Business combination
---	---

A business combination is accounted for by applying the acquisition method, unless it is a combination involving entities or businesses under common control.

In determining whether a particular set of activities and assets is a business, the Group assesses whether the set of assets and activities acquired includes, at a minimum, an input and substantive process and whether the acquired set has the ability to produce outputs.

The Group has an option to apply a ‘concentration test’ that permits a simplified assessment of whether an acquired set of activities and assets is not a business. The optional concentration test is met if substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or group of similar identifiable assets.

Consideration transferred is generally measured at fair value, identical to the measurement of identifiable net assets acquired at fair value. The difference between the acquired company’s fair value and the consideration transferred is accounted for goodwill. Any goodwill that arises is tested annually for impairment. Any gain on a bargain purchase is recognized in profit or loss immediately. Acquisition-related costs are expensed in the periods in which the costs are incurred and the services are received, except if related to the costs to issue debt or equity securities recognized based on KIFRS 1032 and KIFRS 1109.

Consideration transferred does not include the amount settled in relation to the pre-existing relationship. Such amounts are generally recognized through profit or loss.

Contingent consideration is measured at fair value at the acquisition date. Contingent consideration classified as equity is not remeasured and its subsequent settlement is accounted for within equity. If contingent consideration is not classified as equity, the Group subsequently recognizes changes in fair value of contingent consideration through profit or loss.

2) Non-controlling interests

Non-controlling interests are measured at their proportionate share of the acquiree’s identifiable net assets at the date of acquisition.

Changes in a Controlling Company’s ownership interest in a subsidiary that do not result in the Controlling Company losing control of the subsidiary are accounted for as equity transactions.

3) Subsidiaries

Subsidiaries are entities controlled by the Group. The Group controls an investee when it is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Consolidation of an investee begins from the date the Group obtains control of the investee and cease when the Group loses control of the investee.

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

3.	Material Accounting Policies, Continued
(2)	Basis of consolidation, Continued
---	---
4)	Loss of control
---	---

If the Group loses control of a subsidiary, the Group derecognizes the assets and liabilities of the former subsidiary from the consolidated statement of financial position and recognizes gain or loss associated with the loss of control attributable to the former controlling interest. Any investment retained in the former subsidiary is recognized at its fair value when control is lost.

5)	Interest in investees accounted for using the equity method

Interest in investees accounted for using the equity method composed of interest in associates and joint ventures.

An associate is an entity in which the Group has significant influence, but not control, over the entity’s financial and operating policies. A joint venture is a joint arrangement whereby the Group that has joint control of the arrangement has rights to the net assets of the arrangement.

The investment in an associate and a joint venture is initially recognized at cost including transaction costs and the carrying amount is increased or decreased to recognize the Group’s share of the profit or loss and changes in equity of the associate or the joint venture after the date of acquisition.

6)	Intra-group transactions

Intra-group balances and transactions, and any unrealized income and expenses arising from intra-group transactions, are eliminated in preparing the consolidated financial statements. The Group’s share of unrealized gain incurred from transactions with investees accounted for using the equity method are eliminated and unrealized loss are eliminated using the same basis if there are no evidence of asset impairments.

7)	Business combinations under common control

SK Inc. is the ultimate controlling entity of the Group. The assets and liabilities acquired under business combination under common control are recognized at the carrying amounts in the ultimate controlling shareholder’s consolidated financial statements. The difference between consideration and carrying amount of net assets acquired is added to or subtracted from capital surplus and others.

(3)	Cash and cash equivalents

Cash and cash equivalents comprise cash balances, call deposits and investment securities with maturities of three months or less from the acquisition date that are easily convertible to cash and subject to an insignificant risk of changes in their fair value.

(4)	Inventories

Inventories are initially recognized at the acquisition cost and subsequently measured using the weighted average method. During the period, a perpetual inventory system is used to track inventory quantities, which is adjusted based on the physical inventory counts performed at the period end. When the net realizable value of inventories is less than cost, the carrying amount is reduced to the net realizable value, and any difference is charged to current period as operating expenses.

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

3.	Material Accounting Policies, Continued
(5)	Non-derivative financial assets
---	---
1)	Recognition and initial measurement
---	---

Accounts receivable – trade and debt investments issued are initially recognized when they are originated. All other financial assets and financial liabilities are initially recognized when the Group becomes a party to the contractual provisions of the instrument.

A financial asset (unless an accounts receivable – trade without a significant financing component) or financial liability is initially measured at fair value plus, for an item not at FVTPL, transaction costs that are directly attributable to its acquisition or issue. An accounts receivable – trade without a significant financing component is initially measured at the transaction price.

2)	Classification and subsequent measurement

On initial recognition, a financial asset is classified as measured at:

•	FVTPL
•	FVOCI – equity investment
---	---
•	FVOCI – debt investment
---	---
•	Financial assets at amortized cost
---	---

A financial asset is classified based on the business model in which a financial asset is managed and its contractual cash flow characteristics.

Financial assets are not reclassified subsequent to their initial recognition unless the Group changes its business model for managing financial assets, in which case all affected financial assets are reclassified on the first day of the first reporting period following the change in the business model.

A financial asset is measured at amortized cost if it meets both of the following conditions and is not designated as at FVTPL:

•	it is held within a business model whose objective is to hold assets to collect contractual cash flows; and<br>
•	its contractual terms give rise to cash flows that are solely payments of principal and interest on the principal<br>amount outstanding on specified dates.
---	---

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

3.	Material Accounting Policies, Continued
(5)	Non-derivative financial assets, Continued
---	---
2)	Classification and subsequent measurement, Continued
---	---

A debt investment is measured at FVOCI if it meets both of the following conditions and is not designated as at FVTPL:

•	it is held within a business model whose objective is achieved by both collecting contractual cash flows and<br>selling financial assets; and
•	its contractual terms give rise to cash flows that are solely payments of principal and interest on the principal<br>amount outstanding on specified dates.
---	---

On initial recognition of an equity investment that is not held for trading, the Group may irrevocably elect to present subsequent changes in the investment’s fair value in other comprehensive income (“OCI”). This election is made on an investment-by-investment basis.

All financial assets not classified as measured at amortized cost or FVOCI as described above are measured at FVTPL. This includes all derivative financial assets. On initial recognition, the Group may irrevocably designate a financial asset that otherwise meets the requirements to be measured at amortized cost or at FVOCI as at FVTPL if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise.

The following accounting policies are applied to the subsequent measurement of financial assets.

Financial assets at FVTPL	These assets are subsequently measured at fair value. Net gains and losses, including any interest or dividend income, are recognized in profit or loss.
Financial assets at amortized cost	These assets are subsequently measured at amortized cost using the effective interest method. The amortized cost is reduced by impairment losses. Interest income, foreign exchange gains and losses and impairment are recognized in<br>profit or loss. Any gain or loss on derecognition is recognized in profit or loss.
Debt investments at FVOCI	These assets are subsequently measured at fair value. Interest income calculated using the effective interest method, foreign exchange gains and losses and impairment are recognized in profit or loss. Other net gains and losses are<br>recognized in OCI. On derecognition, gains and losses accumulated in OCI are reclassified to profit or loss.
Equity investments at FVOCI	These assets are subsequently measured at fair value. Dividends are recognized as income in profit or loss unless the dividend clearly represents a recovery of the cost of the investment. Other net gains and losses are recognized in<br>OCI and are never reclassified to profit or loss.

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

3.	Material Accounting Policies, Continued
(5)	Non-derivative financial assets, Continued
---	---
3)	Impairment
---	---

The Group estimates the expected credit losses (“ECL”) for the debt instruments measured at amortized cost and FVOCI based on the Group’s historical experience and informed credit assessment that includes forward-looking information. The impairment approach is decided based on the assessment of whether the credit risk of a financial asset has increased significantly since initial recognition. However, the Group applies a practical expedient and recognizes impairment losses equal to lifetime ECLs for accounts receivable – trade and lease receivables from the initial recognition.

ECL is a probability-weighted estimate of credit losses. Credit losses are measured as the present value of all cash shortfalls (i.e., the difference between the cash flows due to the entity in accordance with the contract and the cash flows that the Group expects to receive).

At each reporting date, the Group assesses whether financial assets measured at amortized cost and debt investments at FVOCI are credit-impaired. A financial asset is ‘credit-impaired’ when one or more events that have a detrimental impact on the estimated future cash flows of the financial asset have occurred.

Loss allowance on financial assets measured at amortized cost is deducted from the carrying amount of the respective assets, while loss allowance on debt instruments at FVOCI is recognized in OCI, instead of reducing the carrying amount of the transferred assets.

4)	Derecognition
Financial	assets
---	---

The Group derecognizes a financial asset when:

•	the contractual rights to the cash flows from the financial asset expire; or
•	it transfers the rights to receive the contractual cash flows in a transaction in which either: substantially all<br>of the risks and rewards of ownership of the financial asset are transferred; or
---	---
•	the Group neither transfers nor retains substantially all of the risks and rewards of ownership and it does not<br>retain control of the financial asset.
---	---

The Group enters into transactions whereby it transfers assets recognized in its consolidated statement of financial position, but retains either all or substantially all of the risks and rewards of the transferred assets. In these cases, the transferred assets are not derecognized.

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

3.	Material Accounting Policies, Continued
(5)	Non-derivative financial assets, Continued
---	---
4)	Derecognition, Continued
---	---

Interest rate benchmark reform

When the basis for determining the contractual cash flows of a financial asset or financial liability measured at amortized cost changed as a result of interest rate benchmark reform, the Group updated the effective interest rate of the financial asset or financial liability to reflect the change that is required by the reform. A change in the basis for determining the contractual cash flows is required by interest rate benchmark reform if the following conditions are met:

•	the change is necessary as a direct consequence of the reform; and
•	the new basis for determining the contractual cash flows is economically equivalent to the previous basis –<br>i.e., the basis immediately before the change.
---	---

When changes were made to a financial asset or financial liability in addition to changes to the basis for determining the contractual cash flows required by interest rate benchmark reform, the Group first updated the effective rate of the financial asset or financial liability to reflect the change that is required by interest rate benchmark reform. After that, the Group applied the policies on accounting for modifications to the additional changes.

5)	Offsetting

Financial assets and financial liabilities are offset, and the net amount is presented in the statement of financial position when the Group currently has a legally enforceable right to offset the recognized amounts and intends either to settle on a net basis or to settle the liability and realize the asset simultaneously.

A financial asset and a financial liability are offset only when the right to set off the amount is not contingent on future event and legally enforceable even on the event of default, insolvency or bankruptcy.

(6)	Derivative financial instruments, including hedge accounting

Derivatives are initially recognized at fair value. Subsequent to initial recognition, derivatives are measured at fair value at the end of each reporting period, and changes therein are accounted for as described below.

1)	Hedge accounting

The Group holds forward exchange contracts, interest rate swaps, currency swaps and other derivative contracts to manage interest rate risk and foreign exchange risk. The Group designates derivatives as hedging instruments to hedge the variability in cash flow associated with highly probable forecasted transactions or firm commitments (a cash flow hedge).

On initial designation of the hedge, the Group formally documents the relationship between the hedging instrument(s) and hedged item(s), including the risk management objectives and strategy in undertaking the hedge transaction, together with the methods that will be used to assess the effectiveness of the hedging relationship.

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

3.	Material Accounting Policies, Continued
(6)	Derivative financial instruments, including hedge accounting, Continued
---	---
1)	Hedge accounting, Continued
---	---

Hedges directly affected by interest rate benchmark reform

When uncertainty arises about the interest rate benchmark designated as a hedged risk and the timing or the amount of the interest rate benchmark-based cash flows of the hedged item or of the hedging instrument as a result of IBOR reform, for the purpose of evaluating whether there is an economic relationship between the hedged items and the hedging instruments, the Group assumes that the interest rate benchmark on which the hedged items and the hedging instruments are based is not altered as a result of interest rate benchmark reform.

For a cash flow hedge of a forecast transaction, the Group assumes that the benchmark interest rate will not be altered as a result of interest rate benchmark reform for the purpose of assessing whether the forecast transaction is highly probable and determining whether a previously designated forecast transaction in a discontinued cash flow hedge is still expected to occur.

The Group will cease applying the specific policy for assessing the economic relationship between the hedged item and the hedging instrument.

•	to a hedged item or hedging instrument when the uncertainty arising from interest rate benchmark reform is no<br>longer present with respect to the timing and the amount of the interest rate benchmark-based cash flows of the respective item or instrument; or
•	when the hedging relationship is discontinued.
---	---

When the basis for determining the contractual cash flows of the hedged item or hedging instrument changes as a result of IBOR reform and therefore there is no longer uncertainty arising about the cash flows of the hedged item or the hedging instrument, the Group amends the hedge documentation of that hedging relationship to reflect the change(s) required by IBOR reform.

The Group amends the formal hedge documentation by the end of the reporting period during which a change required by IBOR reform is made to the hedged risk, hedged item or hedging instrument. These amendments in the formal hedge documentation do not constitute the discontinuation of the hedging relationship or the designation of a new hedging relationship.

If changes are made in addition to those changes required by interest rate benchmark reform to the financial asset or financial liability designated in a hedging relationship or to the designation of the hedging relationship, the Group determines whether those additional changes result in the discontinuation of hedging accounting. If the additional changes do not result in the discontinuation of hedging accounting, the Group amend the formal designation of the hedging relationship.

When the interest rate benchmark on which the hedged future cash flows had been based is changed as required by IBOR reform, for the purpose of determining whether the hedged future cash flows are expected to occur, the Group deems that the hedging reserve recognized in OCI for that hedging relationship is based on the alternative benchmark rate on which the hedged future cash flows will be based.

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

3.	Material Accounting Policies, Continued
(6)	Derivative financial instruments, including hedge accounting, Continued
---	---
1)	Hedge accounting, Continued
---	---

Cash flow hedge

When a derivative is designated to hedge the variability in cash flows attributable to a particular risk associated with a recognized asset or liability or a highly probable forecasted transaction that could affect profit or loss, the effective portion of changes in the fair value of the derivative is recognized in other comprehensive income, net of tax, and presented in the hedging reserve in equity. Any ineffective portion of changes in the fair value of the derivative is recognized immediately in profit or loss. If the hedging instrument no longer meets the criteria for hedge accounting, expires or is sold, terminated, exercised, or the designation is revoked, then hedge accounting is discontinued prospectively. The cumulative gain or loss on the hedging instrument that has been recognized in other comprehensive income is reclassified to profit or loss in the periods during which the forecasted transaction occurs. If the forecasted transaction is no longer expected to occur, then the balance in other comprehensive income is recognized immediately in profit or loss.

2)	Other derivative financial instruments

Other derivative financial instrument not designated as a hedging instrument are measured at fair value, and the changes in fair value of the derivative financial instrument is recognized immediately in profit or loss.

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

3.	Material Accounting Policies, Continued
(7)	Property and equipment
---	---

Property and equipment are initially measured at cost. The cost of property and equipment includes expenditures arising directly from the construction or acquisition of the asset, any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management and the initial estimate of the costs of dismantling and removing the item and restoring the site on which it is located.

Property and equipment, subsequently, are carried at cost less accumulated depreciation and accumulated impairment losses.

Subsequent costs are recognized in the carrying amount of property and equipment at cost or, if appropriate, as a separate item if it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be reliably measured. The carrying amount of the replaced part is derecognized. The costs of the day-to-day servicing are recognized in profit or loss as incurred.

Property and equipment, except for land, are depreciated on a straight-line basis over estimated useful lives that appropriately reflect the pattern in which the asset’s future economic benefits are expected to be consumed. A component that is significant compared to the total cost of property and equipment is depreciated over its separate useful life.

Gains and losses on disposal of an item of property and equipment are determined by comparing the proceeds from disposal with the carrying amount of property and equipment and are recognized as other non-operating income or expenses.

The estimated useful lives of the Group’s property and equipment are as follows:

	Useful lives (years)
Buildings and structures	15 ~ 40
Machinery	3 ~ 15, 30
Other property and equipment	3 ~ 10

The Group reviews estimated residual values, expected useful lives, and depreciation methods annually at the end of each reporting date and adjusts, if appropriate. The change is accounted for as a change in an accounting estimate.

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

3.	Material Accounting Policies, Continued
(8)	Intangible assets
---	---

Intangible assets are measured initially at cost and, subsequently, are carried at cost less accumulated amortization and accumulated impairment losses.

Intangible assets, except for goodwill, are amortized on a straight-line basis over the estimated useful lives of intangible assets from the date that they are available for use. The residual value of intangible assets is zero. However, club memberships and brand are expected to be available for use as there are no foreseeable limits to the periods. These intangible assets are determined as having indefinite useful lives and, therefore, not amortized.

The estimated useful lives of the Group’s intangible assets are as follows:

	Useful lives (years)
Frequency usage rights	5 ~ 10
Land usage rights	5
Industrial rights	5, 10
Development costs	5
Facility usage rights	10, 20
Customer relations	3 ~ 15
Other	3 ~ 20

Amortization periods and the amortization methods for intangible assets with finite useful lives are reviewed at the end of each reporting period. The useful lives of intangible assets that are not being amortized are reviewed at the end of each reporting period to determine whether events and circumstances continue to support indefinite useful life assessments for those assets. Changes, if appropriate, are accounted for as changes in accounting estimates.

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

3.	Material Accounting Policies, Continued
(8)	Intangible assets, Continued
---	---

Expenditures on research activities are recognized in profit or loss as incurred. Development expenditures are capitalized only if development costs can be reliably measured, the product or process is technically and commercially feasible, future economic benefits are probable, and the Group intends to and has sufficient resources to complete development and to use or sell the asset. Other development expenditures are recognized in profit or loss as incurred.

Subsequent expenditures are capitalized only when they increase the future economic benefits embodied in the specific asset to which it relates. All other expenditures, including expenditures on internally generated goodwill and brands, are recognized in profit or loss as incurred.

(9)	Investment properties

Investment properties are properties held to earn rent income and/or for capital appreciation. Investment properties are measured initially at cost, including transaction costs. Subsequent to initial recognition, investment properties are reported at cost less accumulated depreciation and accumulated impairment losses.

Subsequent expenditures are recognized in carrying amount of an asset or as a separate asset if it is probable that future economic benefits associated with the assets will flow into the Group and the cost of an asset can be measured reliably. The carrying amount of those parts that are replaced is derecognized. The costs associated with routine maintenance and repairs are recognized in profit or loss as incurred.

Investment property, except for land, is depreciated on a straight-line basis over estimated useful lives of 30 years. In addition, right-of-use asset classified as investment property is depreciated using the straight-line basis from the commencement date to the end of the lease term.

The depreciation method, estimated useful lives and residual values are reviewed at the end of each reporting date and adjusted, if appropriate. The change is accounted for as a change in an accounting estimate.

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

3.	Material Accounting Policies, Continued
(10)	Impairment of non-financial assets
---	---

The carrying amounts of the Group’s non-financial assets other than contract assets recognized for revenue arising from contracts with a customer, assets recognized for the costs to obtain or fulfill a contract with a customer, employee benefits, inventories, deferred tax assets, and non-current assets held for sale are reviewed at the end of the reporting period to determine whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated. Goodwill and intangible assets that have indefinite useful lives or that are not yet available for use, irrespective of whether there is any indication of impairment, are tested for impairment annually by comparing their recoverable amounts to their carrying amounts.

The Group estimates the recoverable amount of an individual asset, and if it is impossible to measure the individual recoverable amount of an asset, the Group estimates the recoverable amount of cash-generating unit (“CGU”). A CGU is the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets. The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs to sell. The value in use is estimated by applying a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or CGU for which estimated future cash flows have not been adjusted, to the estimated future cash flows expected to be generated by the asset or CGU.

An impairment loss is recognized in profit or loss to the extent the carrying amount of the asset exceeds its recoverable amount.

(11)	Leases

A contract is or contains a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

1)	Group as a lessee

At commencement or on modification of a contract that contains a lease component, the Group allocates the consideration in the contract to each lease component on the basis of its relative stand-alone prices. However, the Group has elected not to separate non-lease components and account for the lease and non-lease components as a single lease component.

The Group recognizes a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received.

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

3.	Material Accounting Policies, Continued
(11)	Leases, Continued
---	---
1)	Group as a lessee, Continued
---	---

The right-of-use asset is subsequently depreciated using the straight-line basis from the commencement date to the end of the lease term, unless the lease transfers ownership of the underlying asset to the Group by the end of the lease term or the cost of the right-of-use asset reflects that the Group will exercise a purchase option. In that case the right-of-use asset will be depreciated over the useful life of the underlying asset, which is determined on the same basis as those of property and equipment. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Group’s incremental borrowing rate. Generally, the Group uses its incremental borrowing rate as the discount rate.

The Group determines its incremental borrowing rate by obtaining interest rates from various external financing sources and makes certain adjustments to reflect the terms of the lease and type of the asset leased.

Lease payments included in the measurement of the lease liability comprise the following:

•	fixed payments, including in-substance fixed payments;
•	variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the<br>commencement date;
---	---
•	amounts expected to be payable under a residual value guarantee; and
---	---
•	the exercise price under a purchase option that the Group is reasonably certain to exercise, lease payments in an<br>optional renewal period if the Group is reasonably certain to exercise an extension option, and penalties for early termination of a lease unless the Group is reasonably certain not to terminate early.
---	---

The lease liability is measured at amortized cost using the effective interest method. It is remeasured when there is a change in future lease payments arising from a change in an index or rate, if there is a change in the Group’s estimate of the amount expected to be payable under a residual value guarantee, if the Group changes its assessment of whether it will exercise a purchase, extension or termination option or if there is a revised in-substance fixed lease payment.

When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.

The Group presents right-of-use assets that do not meet the definition of investment property in ‘property and equipment’ in the statement of financial position.

The Group has elected not to recognize right-of-use assets and lease liabilities for leases of low-value assets and short-term leases. The Group recognizes the lease payments on short-term leases and leases of low value assets as an expense on a straight-line basis over the lease term.

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

3.	Material Accounting Policies, Continued
(11)	Leases, Continued
---	---
2)	Group as a lessor
---	---

At inception or on modification of a contract that contains a lease component, the Group allocates the consideration in the contract to each lease component on the basis of their relative stand-alone prices.

When the Group acts as a lessor, it determines at lease inception whether each lease is a finance lease or an operating lease.

To classify each lease, the Group makes an overall assessment of whether the lease transfers substantially all of the risks and rewards incidental to ownership of the underlying asset. If this is the case, then the lease is a finance lease; if not, then it is an operating lease. As part of this assessment, the Group considers certain indicators such as whether the lease is for the major part of the economic life of the asset.

When the Group is an intermediate lessor, is accounts for its interests in the head lease and the sub-lease separately. It assesses the lease classification of a sub-lease with reference to the right-of-use asset arising from the head lease, not with reference to the underlying asset. If a head lease is a short-term lease to which the Group applies the exemption described above, then it classifies the sub-lease as an operating lease.

If an arrangement contains lease and non-lease components, then the Group applies KIFRS 1115 to allocate the consideration in the contract.

The Group applies derecognition and impairment requirements in KIFRS 1109 to the net investment in the lease. The Group further regularly reviews estimated unguaranteed residual values used in calculating the gross investment in the lease.

The Group recognizes lease payments received under operating leases as income on a straight-line basis over the lease term as part of ‘other revenue’.

(12)	Assets held for sale

Non-current assets, or disposal groups comprising assets and liabilities, that are expected to be recovered primarily through sales rather than through continuing use, are classified as held for sale. In order to be classified as held for sale, the assets (or disposal groups) must be available for immediate sale in their present condition and their sale must be highly probable. The assets or disposal groups that are classified as assets held for sale are measured at the lower of their carrying amounts and fair value less cost to sell. The Group recognizes an impairment loss for any initial or subsequent write-down of assets (or disposal groups) to fair value less costs to sell and a gain for any subsequent increase in fair value less costs to sell up to the cumulative impairment loss previously recognized.

An asset that is classified as held for sale or part of a disposal group classified as held for sale is not depreciated (or amortized).

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

3.	Material Accounting Policies, Continued
(13)	Non-derivative financial liabilities
---	---

The Group classifies non-derivative financial liabilities into financial liabilities at fair value through profit or loss or other financial liabilities in accordance with the substance of the contractual arrangement. The Group recognizes financial liabilities in the consolidated statement of financial position when the Group becomes a party to the contractual provisions of the financial liabilities.

1)	Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities held for trading or designated as such upon initial recognition. Subsequent to initial recognition, these liabilities are measured at fair value. The amount of change in fair value of financial liability that is attributable to changes in the credit risk of that liability shall be presented in other comprehensive income, and the remaining amount of change in the fair value of the liability shall be presented in profit or loss. Upon initial recognition, transaction costs that are directly attributable to the issue of the financial liability are recognized in profit or loss as incurred.

2)	Other financial liabilities

Non-derivative financial liabilities other than financial liabilities at fair value through profit or loss are classified as other financial liabilities. At the date of initial recognition, other financial liabilities are measured at fair value minus transaction costs that are directly attributable to the issue of the financial liabilities. Subsequent to initial recognition, other financial liabilities are measured at amortized cost and the interest expenses are recognized using the effective interest method.

3)	Derecognition of financial liability

The Group extinguishes a financial liability only when the contractual obligation is fulfilled, canceled or expires. The Group recognizes new financial liabilities at fair value based on new contracts and eliminates existing liabilities when the contractual terms of the financial liabilities change and the cash flows change substantially.

When a financial liability is derecognized, the difference between the carrying amount and the consideration paid (including any transferred non-cash assets or liabilities assumed) is recognized in profit or loss.

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

3.	Material Accounting Policies, Continued
(14)	Employee benefits
---	---
1)	Short-term employee benefits
---	---

Short-term employee benefits are employee benefits that are due to be settled within 12 months after the end of the period in which the employees render related services. When an employee has rendered a service to the Group during an accounting period, the Group recognizes the undiscounted amount of short-term employee benefits expected to be paid in exchange for that service.

2)	Other long-term employee benefits

Other long-term employee benefits include employee benefits that are settled beyond 12 months after the end of the period in which the employees render related services. The Group’s net obligation in respect of long-term employee benefits is the amount of future benefit that employees have earned in return for their service in the current and prior periods. That benefit is discounted to determine its present value. Remeasurements are recognized in profit or loss in the period in which they arise.

3)	Retirement benefits: defined contribution plans

When an employee has rendered a service to the Group during a period, the Group recognizes the contribution payable to a defined contribution plan in exchange for that service as a liability (accrued expense), after deducting any contribution already paid. If the contribution already paid exceeds the contribution due for service before the end of the reporting period, the Group recognizes that excess as an asset (prepaid expense) to the extent that the prepayment will lead to a reduction in future payments or a cash refund.

4)	Retirement benefits: defined benefit plans

At the end of reporting period, defined benefit liabilities (assets) relating to defined benefit plans are recognized at present value of defined benefit obligations net of fair value of plan assets.

The calculation is performed annually by an independent actuary using the projected unit credit method. When the fair value of plan assets exceeds the present value of the defined benefit obligation, the Group recognizes an asset, to the extent of the present value of any economic benefits available in the form of refunds from the plan or reduction in the future contributions to the plan.

Remeasurements of the net defined benefit liability (asset), which comprise actuarial gains and losses, the return on plan assets (excluding interest) and the effect of the asset ceiling (if any, excluding interest), are recognized immediately in other comprehensive income. The Group determines net interests on net defined benefit liability (asset) by multiplying discount rate determined at the beginning of the annual reporting period and considers changes in net defined benefit liability (asset) from contributions and benefit payments. Net interest costs and other costs relating to the defined benefit plan are recognized through profit or loss.

When the plan amendment or curtailment occurs, gains or losses on amendment or curtailment in benefits for the past service provided are recognized through profit or loss. The Group recognizes a gain or loss on a settlement when the settlement of defined benefit plan occurs.

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

3.	Material Accounting Policies, Continued
(15)	Provisions
---	---

Provisions are recognized when the Group has a present legal or constructive obligation as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.

The risks and uncertainties that inevitably surround many events and circumstances are taken into account in reaching the best estimate of a provision. If the effect of the time value of money is material, provisions are determined at the present value of the expected future cash flows.

If some or all of the expenditures required to settle a provision are expected to be reimbursed by another party, the reimbursement is recognized when, and only when, it is virtually certain that reimbursement will be received if the entity settles the obligation. The reimbursement is treated as a separate asset.

Provisions are reviewed at the end of each reporting period and adjusted to reflect the current best estimates. If it is no longer probable that an outflow of resources embodying economic benefits will be required to settle the obligation, the provision is reversed.

A provision is used only for expenditures for which the provision was originally recognized.

(16)	Emissions Rights

The Group accounts for greenhouse gases emission right and the relevant liability as below pursuant to the Act on Allocation and Trading of Greenhouse Gas Emission in Korea.

1)	Greenhouse Gases Emission Right

Greenhouse Gases Emission Right consists of emission allowances, which are allocated from the government free of charge or purchased from the market. The cost includes any directly attributable costs incurred during the normal course of business.

The Group derecognizes an emission right asset when the emission allowance is unusable, disposed or submitted to government in which the future economic benefits are no longer expected to be probable.

2)	Emissions liability

Emission liability is a present obligation of submitting emission rights to the government with regard to emission of greenhouse gas. The emission liability is measured based on the expected quantity of emission for the performing period in excess of emission allowance in possession and the unit price for such emission rights in the market at the end of the reporting period. The emissions liabilities are derecognized when they are surrendered to the government.

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

3.	Material Accounting Policies, Continued
(17)	Transactions in foreign currencies
---	---
1)	Foreign currency transactions
---	---

Transactions in foreign currencies are translated to the functional currency of the Group at exchange rates at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies are retranslated to the functional currency using the exchange rate at the reporting date. Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are retranslated to the functional currency at the exchange rate at the date that the fair value was determined.

Exchange differences arising from monetary items except for financial liabilities designated cashflow hedging instruments are recognized in profit or loss. If a gain or loss on a non-monetary item is recognized in other comprehensive income, any foreign exchange differences are also recognized in other comprehensive income. When a gain or loss on a non-monetary item is recognized in profit or loss, any foreign exchange differences are also recognized in profit or loss.

2)	Foreign operations

If the presentation currency of the Group is different from a foreign operation’s functional currency, the financial statements of the foreign operation are translated into the presentation currency using the following methods:

The assets and liabilities of foreign operations, whose functional currency is not the currency of a hyperinflationary economy, are translated to presentation currency at exchange rates at the reporting date. The income and expenses of foreign operations are translated to functional currency at exchange rates at the dates of the transactions. Foreign currency differences are recognized in other comprehensive income.

Any goodwill arising on the acquisition of a foreign operation and any fair value adjustments to the carrying amounts of assets and liabilities arising on the acquisition of that foreign operation is treated as assets and liabilities of the foreign operation. Thus, they are expressed in the functional currency of the foreign operation and translated at the closing rate at the reporting date.

When a foreign operation is disposed, the relevant amount in the translation is transferred to profit or loss as part of the profit or loss on disposal. On the partial disposal of a subsidiary that includes a foreign operation, the relevant proportion of such cumulative amount is reattributed to non-controlling interest. In any other partial disposal of a foreign operation, the relevant proportion is reclassified to profit or loss.

(18)	Share capital

Ordinary shares are classified as equity. Incremental costs directly attributable to the issuance of ordinary shares and share options are recognized as a deduction from equity, net of any tax effects.

When the Parent Company repurchases its own shares, the amount of the consideration paid is recognized as a deduction from equity and classified as treasury shares. The gains or losses from the purchase, disposal, reissue, or retirement of treasury shares are directly recognized in equity being as transaction with owners.

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

3.	Material Accounting Policies, Continued
(19)	Hybrid bond
---	---

The Group recognizes a financial instrument issued by the Group as an equity instrument if it does not include contractual obligation to deliver financial assets including cash to the counter party.

(20)	Share-based payment

For equity-settled share-based payment transaction, if the fair value of the goods or services received cannot be reliably estimated, the Group measures the value indirectly by reference to the fair value of the equity instruments granted. The related expense with a corresponding increase in capital surplus and others is recognized over the vesting period of the awards.

The amount recognized as an expense is adjusted to reflect the number of awards for which the related service and non-market performance conditions are expected to be met, such that the amount ultimately recognized is based on the number of awards that meet the related service and non-market performance conditions at the vesting date.

The fair value of the amount payable to employees in respect of share appreciation rights, which are settled in cash, is recognized as an expense with a corresponding increase in liabilities, over the period in which the employees become unconditionally entitled to payment. The liability is remeasured at each reporting date and at settlement date based on the fair value of the share appreciation rights. Any changes in the fair value of the liability are recognized in profit or loss.

(21)	Revenue
1)	Identification of performance obligations in contracts with customers
---	---

The Group identifies the distinct services or goods as performance obligations in contracts with customers such as (1) providing wireless and fixed-line telecommunications services, (2) sale of handsets and (3) providing other goods and services. In the case of providing both wireless telecommunications service and selling a handset together to one customer, the Group allocates considerations from the customer between the separate performance obligations for handset sale and wireless telecommunications service. The handset sale revenue is recognized when handset is delivered, and the wireless telecommunications service revenue is recognized over the period of the contract term as stated in the subscription contract.

2)	Allocation of the transaction price to each performance obligation

The Group allocates the transaction price of a contract to each performance obligation identified on a relative stand-alone selling price basis. The Group uses “adjusted market assessment approach” for estimating the stand-alone selling price of a good or service.

3)	Incremental costs of obtaining a contract

The Group pays commissions to its retail stores and authorized dealers in connection with acquiring service contracts. The commissions paid to these parties constituted a significant portion of the Group’s operating expenses. These commissions would not have been paid if there have been no binding contracts with subscribers and, therefore, the Group capitalizes certain costs associated with commissions paid to obtain new customer contracts and amortize them over the expected contract periods.

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

3.	Material Accounting Policies, Continued
(21)	Revenue, Continued
---	---
4)	Customer loyalty programs
---	---

The Group provides customer loyalty points to customers based on the usage of the service to which the Group allocates a portion of consideration received as a performance obligation distinct from wireless telecommunications services. The amount to be allocated to the loyalty program is measured according to the relative stand-alone selling price of the customer loyalty points. The amount allocated to the loyalty program is deferred as a contract liability and is recognized as revenue when loyalty points are redeemed.

5)	Consideration payable to a customer

Based on the subscription contract, a customer who uses the Group’s wireless telecommunications services may receive a discount for purchasing goods or services from a designated third party. The Group pays a portion of the price discounts that the customer receives to the third party which is viewed as consideration payable to a customer. The Group accounts for the amounts payable to the third party as a reduction of the wireless telecommunications service revenue.

(22)	Finance income and finance costs

Finance income comprises interest income on funds invested (including financial assets measured at fair value), dividend income, gains on disposal of financial assets at FVTPL, changes in fair value of financial instruments at FVTPL, and gains on hedging instruments that are recognized in profit or loss. Interest income is recognized as it accrues in profit or loss, using the effective interest rate method. Dividend income is recognized in profit or loss when the right to receive the dividend is established.

Finance costs comprise interest expense on borrowings and debentures, changes in fair value of financial instruments at FVTPL, and losses on hedging instruments that are recognized in profit or loss. Interest expense on borrowings and debentures is recognized as it accrues in profit or loss using the effective interest rate method.

(23)	Income taxes

Income tax expense comprises current and deferred tax. Current tax and deferred tax are recognized in profit or loss except to the extent that it relates to a business combination, or items recognized directly in equity or in OCI.

The Group pays income tax in accordance with the tax-consolidation system when the Parent Company and its subsidiaries are economically unified.

1)	Current tax

Current tax is the expected tax payable or receivable on the taxable profit or loss for the year, using tax rates enacted or substantively enacted at the end of the reporting period, and includes interests and fines related to income taxes paid or payable. The taxable profit is different from the accounting profit for the period since the taxable profit is calculated excluding the temporary differences, which will be taxable or deductible in determining taxable profit (tax loss) of future periods, and non-taxable or non-deductible items from the accounting profit.

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

3.	Material Accounting Policies, Continued
(23)	Income taxes, Continued
---	---
2)	Deferred tax
---	---

Deferred tax is recognized by using the asset-liability method in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. The Group recognizes a deferred tax liability for all taxable temporary differences, except for the difference associated with investments in subsidiaries and associates that the Group is able to control the timing of the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. The Group recognizes a deferred tax asset for all deductible temporary differences to the extent that it is probable that the temporary difference will reverse in the foreseeable future and taxable profit will be available against which the temporary difference can be utilized.

A deferred tax asset is recognized for the carryforward of unused tax losses and unused tax credits to the extent that it is probable that future taxable profit will be available against which the unused tax losses and unused tax credits can be utilized. Future taxable profit is dependent on the reversal of taxable temporary differences. If there are insufficient taxable temporary differences to recognize the deferred tax asset, the business plan of the Group and the reversal of existing temporary differences are considered in determining the future taxable profit.

The Group reviews the carrying amount of a deferred tax asset at the end of each reporting period and reduces the carrying amount to the extent that it is no longer probable that sufficient taxable profit will be available to allow the benefit of part or all of that deferred tax asset to be utilized.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset is realized, or the liability is settled based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities and deferred tax assets reflects the tax consequences that would follow from the manner in which the Group expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

Deferred tax assets and liabilities are offset only if the Group has a legally enforceable right to offset the amount recognized and intends to settle the current tax liabilities and assets on a net basis. Income tax expense in relation to dividend payments is recognized when liabilities relating to the dividend payments are recognized.

3)	Uncertainty over income tax treatments

The Group assesses the uncertainty over income tax treatments pursuant to KIFRS 1012. If the Group concludes it is not probable that the taxation authority will accept an uncertain tax treatment, the Group reflects the effect of uncertainty for each uncertain tax treatment by using either of the following methods, depending on which method the entity expects to better predict the resolution of the uncertainty:

•	The most likely amount: the single most likely amount in a range of possible outcomes.
•	The expected value: the sum of the probability-weighted amounts in a<br>range of possible outcomes.
---	---

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

3.	Material Accounting Policies, Continued
(24)	Earnings per share
---	---

The Group presents basic and diluted earnings per share (EPS) data for its ordinary shares. Basic EPS is calculated by dividing the profit or loss attributable to ordinary shareholders of the Parent Company by the weighted average number of ordinary shares outstanding during the period, adjusted for own shares held. Diluted EPS is determined by adjusting the profit or loss attributable to ordinary shareholders and the weighted average number of ordinary shares outstanding, adjusted for own shares held, for the effects of all dilutive potential ordinary shares, which comprise share options granted to employees, if any.

(25)	Discontinued operation

A discontinued operation is a component of the Group’s business, the operations and cash flows of which can be clearly distinguished from the rest of the Group and which:

•	represents a separate major line of business or geographic area of operations;
•	is part of a single co-ordinated plan to dispose of a separate major line of business or geographic area of<br>operations; or
---	---
•	is a subsidiary acquired only for a purpose of resale.
---	---

When an operation is classified as a discontinued operation, the comparative statements of income and comprehensive income are re-presented as if the operation had been discontinued from the start of the comparative year.

(26)	Standards issued but not yet effective

The new and amended standards and interpretations that are issued, but not yet effective for annual period beginning after January 1, 2024 are disclosed below. The following amendments are not expected to have a material impact on the Group’s consolidated financial statements.

•	Lack of Exchangeability (Amendments to KIFRS 1021 and KIFRS 1101)
•	Classification and measurement of financial instruments (Amendments to KIFRS 1109 and KIFRS 1107)<br>
---	---
•	Annual Improvements to KIFRS - Volume 11
---	---

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

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 years ended December 31, 2024 and 2023 are as follows:
(In millions of won)
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	2024
	Cellular<br>services		Fixed-linetelecommunication<br>services		Others			Sub-total		Adjustments			Total
Total revenue	~~W~~	14,866,217		5,271,705		614,036			20,751,958		(2,811,349	)		17,940,609
Inter-segment revenue		1,548,004		1,196,293		67,052			2,811,349		(2,811,349	)		—
External revenue		13,318,213		4,075,412		546,984			17,940,609		—			17,940,609
Depreciation and amortization		2,688,764		966,904		25,824			3,681,492		(121,118	)		3,560,374
Operating profit (loss)		1,529,971		366,517		(64,929	)		1,831,559		(8,150	)		1,823,409
Finance income and costs, net														(250,884	)
Gain relating to investments in subsidiaries, associates and joint ventures,<br>net														321,787
Other non-operating income and expense, net														(132,547	)
Profit before income tax														1,761,765
(In millions of won)
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	2023
	Cellular<br>services		Fixed-linetelecommunication<br>services		Others			Sub-total		Adjustments			Total
Total revenue	~~W~~	14,664,180		5,095,704		603,493			20,363,377		(2,754,866	)		17,608,511
Inter-segment<br><br><br>revenue		1,541,014		1,167,684		46,168			2,754,866		(2,754,866	)		—
External revenue		13,123,166		3,928,020		557,325			17,608,511		—			17,608,511
Depreciation and amortization		2,743,448		971,628		24,390			3,739,466		(124,700	)		3,614,766
Operating profit (loss)		1,463,934		329,072		(42,771	)		1,750,235		2,969			1,753,204
Finance income and costs, net														(279,025	)
Gain relating to investments in associates and joint ventures, net														10,928
Other non-operating income and expense, net														3,072
Profit before income tax														1,488,179

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

4.	Operating Segments, Continued
1)	Segment information for the years ended December 31, 2024 and 2023 are as follows, Continued:<br>
---	---

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 years ended December 31, 2024 and 2023.

2)	Disaggregation of operating revenues considering the economic factors that affect the nature, amounts, timing<br>and uncertainty of the Group’s revenue and future cash flows is as follows:
(In millions of won)
---	---	---	---	---	---
		2024		2023
Goods and Services transferred at a point in time:
Cellular revenue	Goods and others(*1)	~~W~~	1,078,673		993,919
Fixed-line telecommunication revenue	Goods and others		68,836		93,174
Other revenue	Others(*2)		468,518		459,905
			1,616,027		1,546,998
Goods and Services transferred over time:
Cellular revenue	Wireless service(*3)		10,401,565		10,328,980
	Cellular interconnection		400,516		432,660
	Other(*4)		1,437,459		1,367,607
Fixed-line telecommunication revenue	Fixed-line service		156,453		147,669
	Cellular interconnection		14,014		15,804
	Internet Protocol Television(*5)		1,837,199		1,837,209
	International calls		213,745		190,872
	Internet service and miscellaneous(*6)		1,785,165		1,643,292
Other revenue	Miscellaneous(*2)		78,466		97,420
			16,324,582		16,061,513
		~~W~~	17,940,609		17,608,511

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

4.	Operating Segments, Continued
(2)	Disaggregation of operating revenues considering the economic factors that affect the nature, amounts, timing<br>and 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 data broadcasting channel use<br>for product sales-type 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.
---	---
5.	Deposits with Restrictions on Use
---	---

Deposits which are restricted in use as of December 31, 2024 and 2023 are summarized as follows:

(In millions of won)
	December 31, 2024		December 31, 2023
Cash and cash equivalents(*)	~~W~~	—		58
Short-term financial instruments(*)		79,500		79,500
Long-term financial instruments(*)		372		372
	~~W~~	79,872		79,930
(*)	Includes the charitable trust fund established by the Group, profits from which shall be donated to charitable<br>institutions. As of December 31, 2024, such funds cannot be withdrawn before maturity.
---	---

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

6.	Trade and Other Receivables
(1)	Details of trade and other receivables as of December 31, 2024 and 2023 are as follows:<br>
---	---
(In millions of won)	December 31, 2024
---	---	---	---	---	---	---	---
	Gross<br>amount		Loss allowance			Carrying<br>amount
Current assets:
Accounts receivable – trade	~~W~~	2,247,334		(258,028	)		1,989,306
Short-term loans		65,767		(562	)		65,205
Accounts receivable – other(*)		394,820		(25,628	)		369,192
Accrued income		4,242		—			4,242
Guarantee deposits (Other current assets)		119,575		—			119,575
		2,831,738		(284,218	)		2,547,520
Non-current assets:
Long-term loans		75,842		(41,396	)		34,446
Long-term accounts receivable – other(*)		173,252		—			173,252
Guarantee deposits		155,875		—			155,875
Long-term accounts receivable – trade (Other non-current assets)		11,078		(2	)		11,076
		416,047		(41,398	)		374,649
	~~W~~	3,247,785		(325,616	)		2,922,169
(*)	Gross and carrying amounts of accounts receivable – other as of December 31, 2024 include<br>~~W~~223,761 million of financial instruments classified as fair value through profit or loss (“FVTPL”).
---	---
(In millions of won)	December 31, 2023
---	---	---	---	---	---	---	---
	Gross<br>amount		Loss allowance			Carrying<br>amount
Current assets:
Accounts receivable – trade	~~W~~	2,221,266		(242,734	)		1,978,532
Short-term loans		78,824		(695	)		78,129
Accounts receivable – other(*)		375,748		(31,398	)		344,350
Accrued income		4,295		—			4,295
Guarantee deposits<br><br><br>(Other current assets)		129,357		—			129,357
		2,809,490		(274,827	)		2,534,663
Non-current assets:
Long-term loans		71,847		(41,392	)		30,455
Long-term accounts receivable – other(*)		314,409		(1,878	)		312,531
Guarantee deposits		157,163		(300	)		156,863
Long-term accounts receivable – trade<br><br><br>(Other non-current assets)		12,320		(3	)		12,317
		555,739		(43,573	)		512,166
	~~W~~	3,365,229		(318,400	)		3,046,829
(*)	Gross and carrying amounts of accounts receivable – other as of December 31, 2023 include<br>~~W~~273,945 million of financial instruments classified as fair value through profit or loss (“FVTPL”).
---	---

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

6.	Trade and Other Receivables, Continued
(2)	Changes in the loss allowance on accounts receivable – trade measured at amortized costs for the years<br>ended December 31, 2024 and 2023 are as follows:
---	---
	Beginningbalance		Impairment		*Write-offs ()**			Collection ofreceivablespreviouslywritten-off		Ending<br>balance
---	---	---	---	---	---	---	---	---	---	---	---
2024	~~W~~	242,737		49,865		(42,662	)		8,090		258,030
2023	~~W~~	234,923		37,906		(40,236	)		10,144		242,737
(*)	The Group writes off the trade and other receivables that are determined to be uncollectable due to reasons<br>such 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 the accounts receivable - trade by their credit risk characteristics and days overdue. Details of loss allowance on accounts receivable – trade as of December 31, 2024 are as follows:
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---	---	---	---	---	---
		Less than 6months			6 months ~<br>1 year			1 ~ 3<br>years			More than<br>3 years
Telecommunications service revenue	Expected credit loss rate		1.59	%		72.27	%		89.87	%		99.98	%
	Gross amount	~~W~~	1,484,657			50,529			146,442			21,898
	Loss allowance		23,652			36,516			131,613			21,893
Other revenue	Expected credit loss rate		3.69	%		46.00	%		54.77	%		99.04	%
	Gross amount	~~W~~	523,254			4,091			9,272			18,269
	Loss allowance		19,303			1,882			5,078			18,093

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, 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 rating. While the contract assets are under the impairment requirements, no significant credit risk has been identified.

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

7.	Prepaid expenses

The Group pays commissions to its retail stores and authorized dealers, primarily for wireless telecommunication services based on their performance of attracting new customers and renewing contracts with existing customers, and recognizes costs that would not occur in case of not signing contracts with new and existing customers as prepaid expenses among the commissions. 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 December 31, 2024 and 2023 are as follows:
(In millions of won)
---	---	---	---	---
	December 31, 2024		December 31, 2023
Current assets:
Incremental costs of obtaining contracts	~~W~~	1,881,608		1,882,296
Others		64,002		71,473
	~~W~~	1,945,610		1,953,769
Non-current assets:
Incremental costs of obtaining contracts	~~W~~	1,038,170		1,022,813
Others		70,236		63,294
	~~W~~	1,108,406		1,086,107
(2)	Incremental costs of obtaining contracts
---	---

The amortization in connection with incremental costs of obtaining contracts recognized as an asset for the years ended December 31, 2024 and 2023 are as follows:

(In millions of won)
	2024		2023
Amortization recognized	~~W~~	2,493,346		2,505,724

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

8.	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 December 31, 2024 and 2023 are as follows:<br>
(In millions of won)
---	---	---	---	---
	December 31, 2024		December 31, 2023
Contract assets:
Allocation of consideration between performance obligations	~~W~~	136,737		129,771
Contract liabilities:
Wireless service contracts		20,275		19,149
Customer loyalty programs		5,694		7,164
Fixed-line service contracts		151,427		146,106
Others		52,310		40,074
	~~W~~	229,706		212,493
(2)	The amount of revenue recognized for the years ended December 31, 2024 and 2023 related to the contract<br>liabilities carried forward from the prior periods are ~~W~~113,792 million and ~~W~~141,460 million, respectively. Details of revenue expected to be recognized from contract liabilities as of December 31, 2024 are as<br>follows:
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---
	Less than1 year		1 ~ 2 years		More than<br>2 years		Total
Wireless service contracts	~~W~~	20,275		—		—		20,275
Customer loyalty programs		4,166		1,023		505		5,694
Fixed-line service contracts		91,443		11,356		48,628		151,427
Others		52,310		—		—		52,310
	~~W~~	168,194		12,379		49,133		229,706

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

9.	Inventories
(1)	Details of inventories as of December 31, 2024 and 2023 are as follows:
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	December 31, 2024							December 31, 2023
	Acquisitioncost		Valuationallowance			Carryingamount		Acquisitioncost		Valuationallowance			Carryingamount
Merchandise	~~W~~	191,323		(8,121	)		183,202		174,255		(7,641	)		166,614
Supplies		26,581		—			26,581		13,195		—			13,195
	~~W~~	217,904		(8,121	)		209,783		187,450		(7,641	)		179,809
(2)	Inventories recognized as operating expenses for the years ended December 31, 2024 and 2023 are<br>~~W~~1,323,907 million and ~~W~~1,264,302 million, respectively, which are included in the cost of goods sold. In addition, valuation losses on inventories which are included in the cost of goods sold and other operating<br>expenses amount to ~~W~~486 million and ~~W~~2,025 million for the years ended December 31, 2024 and 2023, respectively. Write-offs included in other operating expenses for the years ended December 31, 2024 and<br>2023 are ~~W~~36 million and ~~W~~19 million, respectively.
---	---
10.	Long-term Investment Securities
---	---
(1)	Details of long-term investment securities as of December 31, 2024 and 2023 are as follows:<br>
---	---
(In millions of won)
---	---	---	---	---	---
	Category	December 31, 2024		December 31, 2023
Equity instruments	FVOCI(*)	~~W~~	1,739,133		1,398,734
	FVTPL		—		8
			1,739,133		1,398,742
Debt instruments	FVTPL		138,789		280,642
			138,789		280,642
		~~W~~	1,877,922		1,679,384
(*)	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 December 31, 2024 and 2023 are ~~W~~1,739,133 million and ~~W~~1,398,734 million, respectively.
---	---

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

11.	Investments in Associates and Joint Ventures
(1)	Investments in associates and joint ventures accounted for using the equity method as of December 31, 2024<br>and 2023 are as follows:
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---	---	---
			December 31, 2024				December 31, 2023
	Country		Ownership<br>(%)		Carryingamount		Ownership(%)		Carryingamount
Investments in associates:
SK China Company Ltd.		China		27.3	~~W~~	975,443		27.3	~~W~~	896,990
Korea IT Fund(*1)		Korea		63.3		363,138		63.3		336,404
UniSK		China		49.0		26,031		49.0		22,285
SK Technology Innovation Company(*2)		Cayman Islands		49.0		34,516		49.0		70,409
SK MENA Investment B.V.		Netherlands		32.1		17,273		32.1		14,872
SK Latin America Investment S.A.(*3)		Spain		32.1		1,357		32.1		14,607
SK South East Asia Investment Pte. Ltd.		Singapore		20.0		391,572		20.0		355,282
Citadel Pacific Telecom Holdings, LLC (*4)		USA		15.0		51,780		15.0		45,901
SM Culture & Contents Co., Ltd.(*5)		Korea		22.8		39,567		22.8		41,578
Nam Incheon Broadcasting Co., Ltd.		Korea		27.3		15,635		27.3		14,344
Home Choice Corp.(*4)		Korea		17.8		3,238		17.8		3,215
Konan Technology Inc.		Korea		20.6		3,575		20.7		6,349
CMES Inc. (*4,6)		Korea		6.6		4,772		7.7		900
SK telecom Japan Inc.(*7)		Japan		24.9		3,703		33.0		1,239
Rebellions Inc. (Formerly, SAPEON Korea Inc.)(*8)		Korea		26.1		298,327		—		—
Start-up Win-Win Fund and others(*4,9,10,11,12,13,14,15)		—		—		102,702		—		81,142
					~~W~~	2,332,629			~~W~~	1,905,517
Investments in joint ventures:
UTC Kakao-SK Telecom ESG Fund(*16)		Korea		48.2		9,198		48.2		9,495
						9,198				9,495
					~~W~~	2,341,827			~~W~~	1,915,012

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

11.	Investments in Associates and Joint Ventures, Continued
(1)	Investments in associates and joint ventures accounted for using the equity method as of December 31, 2024<br>and 2023 are as follows, Continued:
---	---
(*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 received ~~W~~48,240 million from the paid-in capital reduction of SK Technology<br>Innovation Company for the year ended December 31, 2024, with no change in ownership interest.
---	---
(*3)	The Group received ~~W~~14,453 million from the paid-in capital reduction of SK Latin America<br>Investment S.A. for the year ended December 31, 2024, with no change in ownership interest.
---	---
(*4)	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.
---	---
(*5)	The Group recognized an impairment loss of ~~W~~18,755 million as the recoverable amount was<br>assessed to be less than the carrying amount for the year ended December 31, 2024.
---	---
(*6)	The Group acquired an additional ~~W~~8,984 million of shares by exercising the conversion rights<br>of the redeemable convertible preference shares and disposed of a portion of the shares for ~~W~~14,872 million in cash, from which it recognized a ~~W~~10,476 million gain on disposal of such investment in associate for<br>the year ended December 31, 2024. Due to the acquisition, disposal of shares and exercise of stock options by other shareholders, the ownership interest of the Group decreased from 7.7% to 6.6%.
---	---
(*7)	The Group contributed an additional ~~W~~1,683 million to SK telecom Japan Inc. for the year ended<br>December 31, 2024, and the ownership interest of the Group has decreased from 33.0% to 24.9% due to the paid-in capital increase through disproportionate allotment of shares.
---	---
(*8)	The Group lost control of SAPEON Korea Inc., which was a subsidiary of the Parent Company, for the year ended<br>December 31, 2024, due to a decreased ownership resulting from the merger between SAPEON Korea Inc. and Rebellions Inc. As a result, the entity was reclassified as an investment in associate for the year ended December 31, 2024. The<br>redeemable convertible preference shares with voting rights of Rebellions Inc. have been issued, and the Group’s ownership interests of voting shares and common shares held by the Group are 26.1%, and 40.5% as of December 31, 2024,<br>respectively.
---	---
(*9)	The Group contributed an additional ~~W~~5,878 million to SK AMERICAS Inc. (formerly, SK USA Inc.)<br>for the year ended December 31, 2024, and the ownership interest of the Group has decreased from 49.0% to 20.0% due to the paid-in capital increase through disproportionate allotment of shares.
---	---
(*10)	The Group disposed of a portion of shares in Start-up Win-Win Fund for ~~W~~200 million in cash,<br>and disposed of the entire shares of Daliworks Inc. and 12CM JAPAN for ~~W~~150 million and ~~W~~1 million in cash, respectively, from which it recognized ~~W~~1,863 million and ~~W~~7,295 million<br>of losses on disposals of such investments in associates, respectively, for the year ended December 31, 2024.
---	---
(*11)	The Group contributed an additional ~~W~~180 million of investment in SK VENTURE CAPITAL, LLC in<br>cash and ~~W~~273 million of investment in WALDEN SKT VENTURE FUND for the year ended December 31, 2024, with no changes in ownership interest.
---	---

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

11.	Investments in Associates and Joint Ventures, Continued
(1)	Investments in associates and joint ventures accounted for using the equity method as of December 31, 2024<br>and 2023 are as follows, Continued:
---	---
(*12)	The Group reclassified the entire shares of F&U Credit information Co., Ltd. as assets held for sale. (See<br>note 40).
---	---
(*13)	The Group received ~~W~~57 million from the liquidation of Wave City Co., Ltd. and recognized a<br>~~W~~57 million gain relating to investments in associates for the year ended December 31, 2024.
---	---
(*14)	The Group newly acquired a portion of shares of ~~W~~1,294 million of AhnLab Blockchain Company by<br>contribution in kind for the year ended December 31, 2024.
---	---
(*15)	The Group granted Performance Share Units (“PSU”) for executives of associates for the year ended<br>December 31, 2024, resulting in a cumulative contribution amount to ~~W~~24 million. There is no change in the ownership interest. (See note 25)
---	---
(*16)	This investment was classified as investment in joint venture as the Group has a joint control pursuant to the<br>agreement with the other shareholders.
---	---
(2)	The market value of investments in listed associates as of December 31, 2024 and 2023 are as follows:<br>
---	---
(In millions of won, except for share data)
---	---	---	---	---	---	---	---	---	---	---	---	---
	December 31, 2024						December 31, 2023
	Market priceper share<br>(in won)		Number ofshares		Marketvalue		Market price<br>per share<br>(in won)		Number ofshares		Marketvalue
SM Culture & Contents Co., Ltd.	~~W~~	1,400		22,033,898		30,847		1,887		22,033,898		41,578
Konan Technology Inc.		19,470		2,359,160		45,933		32,600		2,359,160		76,909
CMES Inc.		24,000		763,968		18,335		—		—		—

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

11.	Investments in Associates and Joint Ventures, Continued
(3)	The condensed financial information of material associates as of and for the years ended December 31, 2024<br>and 2023 are as follows:
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---
	Korea ITFund		SK China<br>Company Ltd.			SK South East AsiaInvestment Pte. Ltd.
	As of December 31, 2024
Current assets	~~W~~	164,128		1,755,237			1,724,220
Non-current assets		409,248		1,898,657			1,328,952
Current liabilities		—		48,662			342,671
Non-current liabilities		—		328,485			18,430
	2024
Revenue	~~W~~	57,110		71,870			119,019
Profit (loss) for the year		37,187		55,448			(54,649	)
Other comprehensive income (loss)		13,006		(156,828	)		(3,972	)
Total comprehensive income (loss)		50,193		(101,380	)		(58,621	)
(In millions of won)
---	---	---	---	---	---	---	---	---
	Korea ITFund		SK China<br>Company Ltd.			SK South East AsiaInvestment Pte. Ltd.
	As of December 31, 2023
Current assets	~~W~~	128,344		1,350,607			213,522
Non-current assets		402,819		1,987,252			3,034,553
Current liabilities		—		99,083			502,728
Non-current liabilities		—		252,100			13,586
	2023
Revenue	~~W~~	33,017		70,126			76,686
Profit (loss) for the year		16,330		87,462			(66,169	)
Other comprehensive income (loss)		5,316		(56,660	)		2,779
Total comprehensive income (loss)		21,646		30,802			(63,390	)

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

11.	Investments in Associates and Joint Ventures, Continued
(4)	Reconciliations of financial information of material associates to carrying amounts of investments in<br>associates in the consolidated financial statements as of December 31, 2024 and 2023 are as follows:
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---	---	---
	December 31, 2024
	Net assets		Ownershipinterests (%)		Net assetsattributable tothe ownershipinterests		Cost-book valuedifferentials		Carrying amount
Korea IT Fund	~~W~~	573,376		63.3		363,138		—		363,138
SK China Company Ltd.		3,276,747		27.3		893,609		81,834		975,443
SK South East Asia Investment Pte. Ltd.(*)		1,957,860		20.0		391,572		—		391,572
(In millions of won)
---	---	---	---	---	---	---	---	---	---	---
	December 31, 2023
	Net assets		Ownershipinterests (%)		Net assetsattributable tothe ownershipinterests		Cost-book valuedifferentials		Carrying amount
Korea IT Fund	~~W~~	531,163		63.3		336,404		—		336,404
SK China Company Ltd.		2,986,676		27.3		814,503		82,487		896,990
SK South East Asia Investment Pte. Ltd.(*)		1,776,411		20.0		355,282		—		355,282
(*)	Net assets of these entities represent net assets excluding those attributable to their non-controlling<br>interest.
---	---

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

11.	Investments in Associates and Joint Ventures, Continued
(5)	Details of the changes in investments in associates and joint ventures accounted for using the equity method<br>for the years ended December 31, 2024 and 2023 are as follows:
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	2024
	Beginningbalance		Acquisitionand disposal			Share of profit<br>(loss)			Other<br>comprehensive<br>income (loss)			Other increase<br>(decrease)			Ending<br>balance
Investments in associates:
SK China Company Ltd.	~~W~~	896,990		—			8,913			69,540			—			975,443
Korea IT Fund(*1)		336,404		—			23,552			8,237			(5,055	)		363,138
UniSK(*1)		22,285		—			1,430			2,815			(499	)		26,031
SK Technology Innovation Company		70,409		—			4,269			8,078			(48,240	)		34,516
SK MENA Investment B.V.		14,872		—			329			2,072			—			17,273
SK Latin America Investment S.A.		14,607		—			(65	)		1,268			(14,453	)		1,357
SK South East Asia Investment Pte. Ltd.		355,282		—			(9,403	)		45,693			—			391,572
Citadel Pacific Telecom Holdings, LLC (*1)		45,901		—			619			6,699			(1,439	)		51,780
SM Culture & Contents Co., Ltd.		41,578		(3	)		(1,880	)		(128	)		—			39,567
Nam Incheon Broadcasting Co., Ltd.(*1)		14,344		—			1,427			—			(136	)		15,635
Home Choice Corp.		3,215		—			23			—			—			3,238
Konan Technology Inc.		6,349		(16	)		(2,861	)		103			—			3,575
CMES Inc.		900		(4,396	)		(767	)		51			8,984			4,772
SK telecom Japan Inc.		1,239		1,560			(983	)		1,887			—			3,703
Rebellions Inc. (Formerly, SAPEON Korea Inc.)(*2)		—		—			—			—			298,327			298,327
Start-up Win-Win Fund and others(*1,3,4)		81,142		(2,953	)		(1,686	)		2,793			23,406			102,702
		1,905,517		(5,808	)		22,917			149,108			260,895			2,332,629
Investments in joint ventures:
UTC Kakao-SK Telecom ESG Fund		9,495		—			(297	)		—			—			9,198
		9,495		—			(297	)		—			—			9,198
	~~W~~	1,915,012		(5,808	)		22,620			149,108			260,895			2,341,827

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

11.	Investments in Associates and Joint Ventures, Continued
(5)	Details of the changes in investments in associates and joint ventures accounted for using the equity method<br>for the years ended December 31, 2024 and 2023 are as follows, Continued:
---	---
(*1)	Dividends received from the associates are deducted from the carrying amount for the year ended<br>December 31, 2024.
---	---
(*2)	The Group lost control of SAPEON Korea Inc., which was a subsidiary of the Parent Company, for the year ended<br>December 31, 2024, due to a decreased ownership resulting from the merger between SAPEON Korea Inc. and Rebellions Inc. As a result, the entity was reclassified as an investment in associate for the year ended December 31, 2024.<br>
---	---
(*3)	The acquisition for the year ended December 31, 2024 includes ~~W~~5,878 million of<br>investment in SK AMERICAS Inc. (formerly, SK USA Inc.), ~~W~~180 million of investment in SK VENTURE CAPITAL, LLC., ~~W~~273 million of investment in WALDEN SKT VENTURE FUND, ~~W~~24 million of investment in<br>F&U Credit information Co., Ltd. and ~~W~~1,294 million of investment in AhnLab Blockchain Company. The disposal for the year ended December 31, 2024 includes a portion of shares of SK AMERICAS Inc. (formerly, SK USA Inc.) for<br>~~W~~167 million, a portion of Start-up Win-Win Fund for ~~W~~200 million, and the entire shares of 12CM JAPAN and Daliworks Inc. for ~~W~~7,296 million and ~~W~~2,013 million, respectively.<br>
---	---
(*4)	The Group reclassified the entire shares of F&U Credit information Co., Ltd. as assets held for sale. (See<br>note 40).
---	---

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

11.	Investments in Associates and Joint Ventures, Continued
(5)	Details of the changes in investments in associates and joint ventures accounted for using the equity method<br>for the years ended December 31, 2024 and 2023 are as follows, Continued:
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	2023
	Beginningbalance		Acquisitionand disposal			Share of profit(loss)			Other<br>comprehensive<br>income (loss)			Other increase<br>(decrease)			Ending<br>balance
Investments in associates:
SK China Company Ltd.	~~W~~	879,527		—			24,054			(6,591	)		—			896,990
Korea IT Fund(*1)		324,860		—			10,343			3,366			(2,165	)		336,404
UniSK(*1)		20,839		—			2,079			102			(735	)		22,285
SK Technology<br><br><br>Innovation Company		69,375		—			(178	)		1,212			—			70,409
SK MENA Investment B.V.		14,296		—			335			241			—			14,872
SK Latin America Investment S.A.		11,961		—			1,974			672			—			14,607
SK South East Asia Investment<br><br><br>Pte. Ltd.		357,537		—			(12,881	)		10,626			—			355,282
Citadel Pacific Telecom Holdings,<br><br><br>LLC (*1)		48,542		—			2,628			637			(5,906	)		45,901
SM Culture & Contents Co.,<br><br><br>Ltd.(*2)		59,611		(679	)		593			808			(18,755	)		41,578
Nam Incheon Broadcasting<br><br><br>Co., Ltd.(*1)		13,575		—			905			—			(136	)		14,344
Home Choice Corp.		4,456		—			(1,241	)		—			—			3,215
Konan Technology Inc.		8,366		(44	)		(2,100	)		127			—			6,349
CMES Inc.		900		—			—			—			—			900
SK telecom Japan Inc.(*3)		—		—			—			—			1,239			1,239
12CM JAPAN and others(*1,4)		69,734		8,706			5,108			(2,264	)		(142	)		81,142
		1,883,579		7,983			31,619			8,936			(26,600	)		1,905,517
Investments in joint ventures:
UTC Kakao-SK Telecom ESG Fund		5,710		4,000			(215	)		—			—			9,495
		5,710		4,000			(215	)		—			—			9,495
	~~W~~	1,889,289		11,983			31,404			8,936			(26,600	)		1,915,012

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

11.	Investments in Associates and Joint Ventures, Continued
(5)	Details of the changes in investments in associates and joint ventures accounted for using the equity method<br>for the years ended December 31, 2024 and 2023 are as follows, Continued:
---	---
(*1)	Dividends received from the associates are deducted from the carrying amount for the year ended<br>December 31, 2023.
---	---
(*2)	The Group recognized ~~W~~18,755 million of impairment loss for the year ended December 31,<br>2023.
---	---
(*3)	The Group disposed of a portion of shares in SK telecom Japan Inc., which was a subsidiary of the Parent<br>Company, resulting in the reclassification of the remaining shares as an investment in associates for the year ended December 2023.
---	---
(*4)	The acquisition for the year ended December 31, 2023 includes ~~W~~6,500 million of<br>investment in Telecom Daean Evaluation Co., Ltd. (formerly, Telecom Daean Evaluation Jun B Corporation Co., Ltd.), ~~W~~6,000 million of investment in KB ESG Fund of the three telecommunications companies, ~~W~~215 million<br>of investment in KDX Korea Data Exchange, ~~W~~132 million of investment in SK Venture Capital, LLC, ~~W~~261 million of investment in Walden SKT Venture Fund, ~~W~~520 million of<br>investment in Covet Co., Ltd., and ~~W~~28 million of investment in F&U Credit information Co., Ltd. The disposal for the year ended December 31, 2023 includes a portion of shares in Start-up Win-Win Fund for<br>~~W~~550 million and a portion of SK-KNET Youth Startup Investment Cooperative for ~~W~~4,400 million for the year ended December 31, 2023.
---	---

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

11.	Investments in Associates and Joint Ventures, Continued
(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 December 31, 2024 are as follows:
---	---
((In millions of won)	Unrecognized loss				Unrecognized change in equity
---	---	---	---	---	---	---	---	---	---
	2024		Cumulativeloss		2024		Cumulativeloss
Invites Genomics Co., Ltd. (Formerly, Invites Healthcare Co., Ltd.)	~~W~~	14,334		22,178		107		1,286
Daehan Kanggun BcN Co., Ltd. and others		—		5,187		—		(124	)
	~~W~~	14,334		27,365		107		1,162
12.	Property and Equipment
---	---
(1)	Property and equipment as of December 31, 2024 and 2023 are as follows:
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---	---	---
	December 31, 2024
	Acquisition cost		Accumulateddepreciation			Accumulatedimpairment loss			Carrying amount
Land	~~W~~	1,260,712		—			—			1,260,712
Buildings		1,822,695		(1,056,427	)		(450	)		765,818
Structures		955,360		(742,772	)		(1,601	)		210,987
Machinery		38,191,687		(30,457,696	)		(11,425	)		7,722,566
Other		1,631,503		(1,262,496	)		—			369,007
Right-of-use assets		2,645,207		(1,036,988	)		—			1,608,219
Construction in progress		681,010		—			(925	)		680,085
	~~W~~	47,188,174		(34,556,379	)		(14,401	)		12,617,394
(In millions of won)
	December 31, 2023
	Acquisition cost		Accumulateddepreciation			Accumulatedimpairment loss			Carrying amount
Land	~~W~~	1,248,200		—			—			1,248,200
Buildings		1,775,563		(1,001,721	)		(450	)		773,392
Structures		941,868		(705,388	)		(1,601	)		234,879
Machinery		37,688,793		(29,796,000	)		(2,139	)		7,890,654
Other		1,757,617		(1,271,597	)		(863	)		485,157
Right-of-use assets		2,549,003		(933,567	)		(3,485	)		1,611,951
Construction in progress		761,963		—			—			761,963
	~~W~~	46,723,007		(33,708,273	)		(8,538	)		13,006,196

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

12.	Property and Equipment, Continued
(2)	Changes in property and equipment for the years ended December 31, 2024 and 2023 are as follows:<br>
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	2024
	Beginningbalance		Acquisition		Disposal			*Transfer()**			Deprecia-tion			Impairment			Changes inconsolidationscope			Endingbalance
Land	~~W~~	1,248,200		101		(2,213	)		14,624			—			—			—			1,260,712
Buildings		773,392		3,785		(1,279	)		46,479			(56,559	)		—			—			765,818
Structures		234,879		1,574		(78	)		13,408			(37,997	)		—			(799	)		210,987
Machinery		7,890,654		517,884		(23,253	)		1,616,265			(2,267,720	)		(11,025	)		(239	)		7,722,566
Other		485,157		390,130		(12,131	)		(408,675	)		(84,179	)		(10	)		(1,285	)		369,007
Right-of-use<br><br><br>assets		1,611,951		523,494		(90,734	)		(26,271	)		(407,338	)		(33	)		(2,850	)		1,608,219
Construction<br><br><br>in progress		761,963		1,441,907		(5,030	)		(1,517,830	)		—			(925	)		—			680,085
	~~W~~	13,006,196		2,878,875		(134,718	)		(262,000	)		(2,853,793	)		(11,993	)		(5,173	)		12,617,394
(In millions of won)
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	2023
	Beginningbalance		Acquisition		Disposal			Transfer			Deprecia-tion			Impairment			Endingbalance
Land	~~W~~	1,005,857		12		(388	)		242,719			—			—			1,248,200
Buildings		785,225		1,083		(294	)		41,516			(54,138	)		—			773,392
Structures		265,656		1,632		(198	)		6,446			(38,657	)		—			234,879
Machinery		7,912,900		553,541		(7,267	)		1,734,474			(2,302,789	)		(205	)		7,890,654
Other		497,394		554,595		(1,205	)		(476,097	)		(89,506	)		(24	)		485,157
Right-of-use<br><br><br>assets		1,786,129		345,761		(86,069	)		(23,436	)		(410,032	)		(402	)		1,611,951
Construction<br><br><br>in progress		1,069,331		1,554,922		(26	)		(1,862,264	)		—			—			761,963
	~~W~~	13,322,492		3,011,546		(95,447	)		(336,642	)		(2,895,122	)		(631	)		13,006,196
(*)	The Group decided to dispose of the shares of NATE Communications Corporation (formerly, SK Communications Co.,<br>Ltd.) and SK m&service Co., Ltd., the consolidated subsidiaries, and reclassified the property and equipment amounting to ~~W~~17,412 million of NATE Communications Corporation (formerly, SK Communications Co., Ltd.) and SK<br>m&service Co., Ltd. as assets held for sale.
---	---

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

13.	Investment Property
(1)	Investment property as of December 31, 2024 and 2023 are as follows:
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	December 31, 2024							December 31, 2023
	Acquisition<br>cost		Accumulateddepreciation			Carrying<br>amount		Acquisition<br>cost		Accumulateddepreciation			Carrying<br>amount
Land	~~W~~	9,787		—			9,787		14,199		—			14,199
Buildings		23,010		(14,981	)		8,029		27,462		(17,220	)		10,242
Right-of-use assets		16,518		(7,723	)		8,795		16,975		(6,604	)		10,371
	~~W~~	49,315		(22,704	)		26,611		58,636		(23,824	)		34,812
(2)	Changes in investment property for the years ended December 31, 2024 and 2023 are as follows:<br>
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---	---	---	---
	2024
	Beginning balance			*Transfer()**			Depreciation			Ending balance
Land		~~W~~	14,199		(4,412	)		—			9,787
Buildings			10,242		(1,143	)		(1,070	)		8,029
Right-of-use assets			10,371		73			(1,649	)		8,795
		~~W~~	34,812		(5,482	)		(2,719	)		26,611
(In millions of won)
---	---	---	---	---	---	---	---	---	---
	2023
	Beginning balance		Transfer		Depreciation			Ending balance
Land	~~W~~	6,115		8,084		—			14,199
Buildings		6,884		5,343		(1,985	)		10,242
Right-of-use assets		12,138		473		(2,240	)		10,371
	~~W~~	25,137		13,900		(4,225	)		34,812
(*)	The Group decided to dispose of the shares of NATE Communications Corporation (formerly, SK Communications Co.,<br>Ltd.) and SK m&service Co., Ltd., the consolidated subsidiaries, and reclassified the investment property amounting to ~~W~~1,719 million of SK m&service Co., Ltd. as assets held for sale.
---	---
(3)	The Group recognized lease income of ~~W~~5,526 million and ~~W~~6,202 million from<br>investment property for the years ended December 31, 2024 and 2023, respectively.
---	---
(4)	The fair value of investment property is ~~W~~58,552 million and ~~W~~70,138 million<br>as of December 31, 2024 and 2023, respectively.
---	---

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

14.	Leases
(1)	Group as a lessee
---	---
1)	Details of the right-of-use assets as of December 31, 2024 and 2023 are as follows:
---	---
(In millions of won)
---	---	---	---	---
	December 31, 2024		December 31, 2023
Right-of-use assets:
Land, buildings and structures	~~W~~	1,379,422		1,376,721
Others		228,797		235,230
	~~W~~	1,608,219		1,611,951
2)	Details of amounts recognized in the consolidated statements of income for the years ended December 31,<br>2024 and 2023 as a lessee are as follows:
---	---
(In millions of won)
---	---	---	---	---
	2024		2023
Depreciation of right-of-use assets:
Land, buildings and structures	~~W~~	343,161		346,931
Others(*)		64,177		63,101
	~~W~~	407,338		410,032
Interest expense on lease liabilities	~~W~~	50,631		46,595
(*)	Others include the amount reclassified as research and development expenses related to the lease contract for<br>research and development facilities.
---	---

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

3)	The total cash outflows due to lease payments for the years ended December 31, 2024 and 2023 amounted to<br>~~W~~465,119 million and ~~W~~474,410 million, respectively.

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

14.	Leases, Continued
(2)	Group as a lessor
---	---
1)	Finance lease
---	---

The Group recognized interest income of ~~W~~2,566 million and ~~W~~800 million on lease receivables for the years ended December 31, 2024 and 2023, respectively.

The following table sets out a maturity analysis for lease receivables, presenting the undiscounted lease payments to be received subsequent to December 31, 2024.

(In millions of won)
	Amount
Less than 1 year	~~W~~	12,695
1 ~ 2 years		4,012
2 ~ 3 years		2,544
3 ~ 4 years		1,411
4 ~ 5 years		391
Undiscounted lease payments	~~W~~	21,053
Unrealized finance income	~~W~~	464
Net investment in the lease		20,589
2)	Operating lease
---	---

The Group recognized lease income of ~~W~~235,519 million and ~~W~~235,988 million for the years ended December 31, 2024 and 2023, respectively, of which variable lease payments received are ~~W~~2,309 million and ~~W~~2,694 million, respectively.

The following table sets out a maturity analysis of lease payments, presenting the undiscounted fixed payments to be received subsequent to December 31, 2024.

(In millions of won)
	Amount
Less than 1 year	~~W~~	102,362
1 ~ 2 years		72,437
2 ~ 3 years		39,704
3 ~ 4 years		118
4 ~ 5 years		113
More than 5 years		2,250
	~~W~~	216,984

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

15.	Goodwill
(1)	Goodwill as of December 31, 2024 and 2023 are as follows:
---	---
(In millions of won)
---	---	---	---	---
	December 31, 2024		December 31, 2023
Goodwill related to merger of Shinsegi Telecom, Inc.	~~W~~	1,306,236		1,306,236
Goodwill related to acquisition of SK Broadband Co., Ltd.		764,082		764,082
Other goodwill		2,175		4,691
	~~W~~	2,072,493		2,075,009
(2)	Details of the impairment testing of Goodwill as of December 31, 2024 is as follows:<br>
---	---

Goodwill is allocated to the following CGUs for the purpose of impairment testing.

•	goodwill related to Shinsegi Telecom, Inc.(*1): Cellular services;
•	goodwill related to SK Broadband Co., Ltd.(*2): Fixed-line telecommunication services; and
---	---
•	other goodwill: Others.
---	---
(*1)	Goodwill related to merger of Shinsegi Telecom, Inc.
---	---

The recoverable amount of the CGU is based on its value in use calculated by applying the post-tax annual discount rate of 5.2% (2023: 5.4%) (pre-tax annual discount rate for 2024 and 2023: 7.0% and 8.4%) to the estimated future post-tax cash flows based on financial budgets for the next five years. An annual growth rate of 0.0% (2023: 0.0%) was applied for the cash flows expected to be incurred after five years and is not expected to exceed the long-term wireless telecommunication industry growth rate.

(*2)	Goodwill related to acquisition of SK Broadband Co., Ltd.

The recoverable amount of the CGU is based on its value in use calculated by applying the post-tax annual discount rate of 6.0% (2023: 6.2%) (pre-tax annual discount rate for 2024 and 2023: 7.6% and 7.9%) to the estimated future post-tax cash flows based on financial budgets for the next five years. An annual growth rate of 1.0% (2023: 1.0%) was applied for the cash flows expected to be incurred after five years and is not expected to exceed the long-term fixed-line telecommunication industry growth rate.

(3)	Details of the changes in goodwill for the years ended December 31, 2024 and 2023 are as follows:<br>
(In millions of won)
---	---	---	---	---	---
	2024			2023
Beginning balance	~~W~~	2,075,009			2,075,009
Reclassified as assets held for sale(*)		(2,516	)		—
Ending balance	~~W~~	2,072,493			2,075,009
(*)	The Group decided to dispose of the shares of NATE Communications Corporation (formerly, SK Communications Co.,<br>Ltd.) and SK m&service Co., Ltd., the consolidated subsidiaries, and reclassified the goodwill amounting to ~~W~~2,516 million of SK m&service Co., Ltd. as assets held for sale.
---	---

As of December 31, 2024 and 2023, accumulated impairment losses are ~~W~~11,300 million and ~~W~~33,441 million respectively.

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

16.	Intangible Assets
(1)	Intangible assets as of December 31, 2024 and 2023 are as follows:
---	---
(In millions of won)	December 31, 2024
---	---	---	---	---	---	---	---	---	---	---
	Acquisitioncost		Accumulatedamortization			Accumulatedimpairmentloss			Carryingamount
Frequency usage rights(*1)	~~W~~	3,564,907		(2,429,361	)		—			1,135,546
Land usage rights		54,341		(54,032	)		—			309
Industrial rights		98,265		(33,092	)		(45,000	)		20,173
Development costs		2,960		(2,933	)		—			27
Facility usage rights		161,561		(148,247	)		—			13,314
Customer relations		505,062		(258,943	)		—			246,119
Club memberships(*2)		93,266		—			(14,648	)		78,618
Other(*3)		5,029,153		(4,284,644	)		(43,744	)		700,765
	~~W~~	9,509,515		(7,211,252	)		(103,392	)		2,194,871
(In millions of won)	December 31, 2023
	Acquisitioncost		Accumulatedamortization			Accumulatedimpairmentloss			Carryingamount
Frequency usage rights(*1)	~~W~~	3,564,907		(1,958,301	)		—			1,606,606
Land usage rights		57,106		(56,519	)		—			587
Industrial rights		97,993		(34,141	)		(17,698	)		46,154
Development costs		14,815		(14,766	)		—			49
Facility usage rights		159,891		(145,578	)		—			14,313
Customer relations		505,063		(231,913	)		—			273,150
Club memberships(*2)		121,895		—			(24,709	)		97,186
Other(*3)		4,851,168		(4,020,886	)		(7,190	)		823,092
	~~W~~	9,372,838		(6,462,104	)		(49,597	)		2,861,137
(*1)	The Parent Company was reassigned 800 MHz, 1.8 GHz and 2.1 GHz band of frequency licenses from the Ministry of<br>Science and Information and Communication Technology (“ICT”) in exchange for ~~W~~227,200 million, ~~W~~547,800 million and ~~W~~411,700 million, respectively, for the year ended December 31,<br>2021. The band of frequency was assigned to the Parent Company at the date of initial lump sum payment for the year ended December 31, 2021 and the annual payments in installment for the remaining balances are made in the next five years<br>starting from the date of initial lump sum payment.
---	---
(*2)	Club memberships are classified as intangible assets with indefinite useful lives and are not amortized.<br>
---	---
(*3)	Other intangible assets primarily consist of computer software and others.
---	---

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

16.	Intangible Assets, Continued
(2)	Changes in intangible assets for the years ended December 31, 2024 and 2023 are as follows:<br>
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	2024
	Beginningbalance		Acquisition		Disposal			Transfer<br>*(2)**			Amortization			*Impairment(1)**			Changes in<br>consolidationscope			Endingbalance
Frequency usage rights	~~W~~	1,606,606		—		—			—			(471,060	)		—			—			1,135,546
Land usage rights		587		69		(5	)		—			(342	)		—			—			309
Industrial rights		46,154		6,578		(241	)		(1	)		(4,962	)		(27,340	)		(15	)		20,173
Development costs		49		—		—			—			(22	)		—			—			27
Facility usage rights		14,313		1,477		(3	)		618			(3,091	)		—			—			13,314
Customer relations		273,150		—		—			—			(27,031	)		—			—			246,119
Club memberships		97,186		3,700		(20,065	)		(1,727	)		—			(476	)		—			78,618
Other		823,092		61,598		(1,596	)		209,702			(336,870	)		(54,927	)		(234	)		700,765
	~~W~~	2,861,137		73,422		(21,910	)		208,592			(843,378	)		(82,743	)		(249	)		2,194,871
(*1)	The Group recognized the difference between recoverable amount and the carrying amount of intangible assets<br>amounting to ~~W~~82,743 million as impairment loss for the year ended December 31, 2024.
---	---
(*2)	The Group decided to dispose of the shares of NATE Communications Corporation (formerly, SK Communications Co.,<br>Ltd.) and SK m&service Co., Ltd., the consolidated subsidiaries, and reclassified the intangible assets amounting to ~~W~~5,655 million of NATE Communications Corporation (formerly, SK Communications Co., Ltd.) and SK m&service<br>Co., Ltd. as assets held for sale.
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	2023
	Beginningbalance		Acquisition		Disposal			Transfer		Amortization			Impairment<br>*(1)**			Endingbalance
Frequency usage rights	~~W~~	2,082,432		—		—			—		(475,826	)		—			1,606,606
Land usage rights		1,224		155		(15	)		40		(817	)		—			587
Industrial rights		51,792		4,563		(350	)		—		(4,530	)		(5,321	)		46,154
Development costs		284		—		—			—		(234	)		(1	)		49
Facility usage rights		14,997		1,884		(16	)		981		(3,533	)		—			14,313
Customer relations		300,181		—		—			—		(27,031	)		—			273,150
Club memberships		91,971		7,619		(2,174	)		65		—			(295	)		97,186
Other		782,029		91,848		(1,752	)		294,567		(339,478	)		(4,122	)		823,092
	~~W~~	3,324,910		106,069		(4,307	)		295,653		(851,449	)		(9,739	)		2,861,137
(*1)	The Group recognized the difference between recoverable amount and the carrying amount of intangible assets<br>amounting to ~~W~~9,739 million as impairment loss for the year ended December 31, 2023.
---	---

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

16.	Intangible Assets, Continued
(3)	Research and development expenditures recognized as expense for the years ended December 31, 2024 and 2023<br>are as follows:
---	---
(In millions of won)
---	---	---	---	---
	2024		2023
Research and development costs expensed as incurred	~~W~~	378,079		369,507
(4)	Details of frequency usage rights as of December 31, 2024 are as follows:
---	---
(In millions of won)
---	---	---	---	---	---
	Amount		Description	Commencementof amortization	Completion ofamortization
800MHz license	~~W~~	65,873	LTE service	Jul. 2021	Jun. 2026
1.8GHz license		202,751	LTE service	Dec. 2021	Dec. 2026
2.6GHz license		242,830	LTE service	Sep. 2016	Dec. 2026
2.1GHz license		152,378	W-CDMA and LTE service	Dec. 2021	Dec. 2026
3.5GHz license		471,714	5G service	Apr. 2019	Nov. 2028
	~~W~~	1,135,546
17.	Borrowings and Debentures
---	---
(1)	Short-term borrowings as of December 31, 2024 and 2023 are as follows:
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---
Lender	Annualinterest rate (%)		Maturity		December 31,2024		December 31,<br>2023
SK Securities Co., Ltd.		3.62		Oct. 2, 2025	~~W~~	50,000		—
Shinhan Securities Co., Ltd.		3.62		Oct. 2, 2025		50,000		—
					~~W~~	100,000		—

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

17.	Borrowings and Debentures, Continued
(2)	Long-term borrowings as of December 31, 2024 and 2023 are as follows:
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---
Lender	Annual interestrate (%)	Maturity	December 31,2024			December 31,<br>2023
Korea Development Bank(*1)	1.87	Feb. 10, 2026	~~W~~	15,625			28,125
Mizuho bank, Ltd.	1.35	May. 20, 2024		—			100,000
DBS bank Ltd.	1.32	May. 28, 2024		—			200,000
DBS bank Ltd.	2.63	Mar. 10, 2025		200,000			200,000
Credit Agricole CIB	3.30	Apr. 29, 2024		—			50,000
Credit Agricole CIB	4.89	Nov. 28, 2025		50,000			50,000
Mizuho Bank, Ltd.(*2)	3M CD + 1.05	Jul. 25, 2025		50,000			50,000
Nonghyup Bank(*3)	MOR + 1.36	Nov. 17, 2024		—			40,000
DBS bank Ltd.(*2)	3M CD + 0.075	Oct. 8, 2026		200,000			—
				515,625			718,125
Less: present value discount				(25	)		(47	)
				515,600			718,078
Less: current portions				(312,475	)		(402,500	)
			~~W~~	203,125			315,578
(*1)	The long-term borrowings are to be repaid by installments on an annual basis from 2022 to 2026.<br>
---	---
(*2)	3M CD rates are 3.41% and 3.83% as of December 31, 2024 and 2023, respectively.
---	---
(*3)	6M MOR rates are 3.33% and 3.85% as of December 31, 2024 and 2023, respectively.
---	---

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

17.	Borrowings and Debentures, Continued
(3)	Debentures as of December 31, 2024 and 2023 are as follows:
---	---
(In millions of won and thousands of U.S. dollars)
---	---	---	---	---	---	---	---
	Purpose	Maturity	Annual<br>interest rate<br>(%)	December 31,2024		December 31,2023
Unsecured corporate bonds	Operating fund	2032	3.45	~~W~~	90,000		90,000
Unsecured corporate bonds		2033	3.22		130,000		130,000
Unsecured corporate bonds		2024	3.64		—		150,000
Unsecured corporate bonds	Refinancing fund	2024	2.82		—		190,000
Unsecured corporate bonds	Operating and refinancing fund	2025	2.49		150,000		150,000
Unsecured corporate bonds	Operating fund	2030	2.61		50,000		50,000
Unsecured corporate bonds		2025	2.66		70,000		70,000
Unsecured corporate bonds		2030	2.82		90,000		90,000
Unsecured corporate bonds	Refinancing fund	2025	2.55		100,000		100,000
Unsecured corporate bonds		2035	2.75		70,000		70,000
Unsecured corporate bonds	Operating fund	2026	2.08		90,000		90,000
Unsecured corporate bonds		2036	2.24		80,000		80,000
Unsecured corporate bonds		2026	1.97		120,000		120,000
Unsecured corporate bonds		2031	2.17		50,000		50,000
Unsecured corporate bonds	Refinancing fund	2027	2.55		100,000		100,000
Unsecured corporate bonds	Operating and refinancing fund	2032	2.65		90,000		90,000
Unsecured corporate bonds	Refinancing fund	2027	2.84		100,000		100,000
Unsecured corporate bonds	Operating fund	2028	3.00		200,000		200,000
Unsecured corporate bonds		2038	3.02		90,000		90,000
Unsecured corporate bonds		2038	2.44		50,000		50,000
Unsecured corporate bonds		2024	2.09		—		120,000
Unsecured corporate bonds		2029	2.19		50,000		50,000
Unsecured corporate bonds		2039	2.23		50,000		50,000
Unsecured corporate bonds	Refinancing fund	2024	1.49		—		60,000
Unsecured corporate bonds	Operating and refinancing fund	2029	1.50		120,000		120,000
Unsecured corporate bonds	Refinancing fund	2039	1.52		50,000		50,000
Unsecured corporate bonds		2049	1.56		50,000		50,000
Unsecured corporate bonds	Operating fund	2024	1.76		—		70,000
Unsecured corporate bonds		2029	1.79		40,000		40,000
Unsecured corporate bonds		2039	1.81		60,000		60,000
Unsecured corporate bonds		2025	1.75		130,000		130,000
Unsecured corporate bonds		2030	1.83		50,000		50,000
Unsecured corporate bonds		2040	1.87		70,000		70,000

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

17.	Borrowings and Debentures, Continued
(3)	Debentures as of December 31, 2024 and 2023 are as follows, Continued:
---	---
(In millions of won and thousands of U.S. dollars)
---	---	---	---	---	---	---	---
	Purpose	Maturity	Annualinterest rate<br>(%)	December 31,<br>2024		December 31,2023
Unsecured corporate bonds	Refinancing fund	2025	1.40		140,000		140,000
Unsecured corporate bonds		2030	1.59		40,000		40,000
Unsecured corporate bonds		2040	1.76		110,000		110,000
Unsecured corporate bonds		2024	1.17		—		80,000
Unsecured corporate bonds		2026	1.39		80,000		80,000
Unsecured corporate bonds		2031	1.80		50,000		50,000
Unsecured corporate bonds		2041	1.89		100,000		100,000
Unsecured corporate bonds		2024	2.47		—		90,000
Unsecured corporate bonds		2026	2.69		70,000		70,000
Unsecured corporate bonds		2041	2.68		40,000		40,000
Unsecured corporate bonds		2025	3.80		240,000		240,000
Unsecured corporate bonds		2027	3.84		70,000		70,000
Unsecured corporate bonds		2042	3.78		40,000		40,000
Unsecured corporate bonds		2025	4.00		300,000		300,000
Unsecured corporate bonds		2027	4.00		95,000		95,000
Unsecured corporate bonds		2024	4.79		—		100,000
Unsecured corporate bonds		2025	4.73		110,000		110,000
Unsecured corporate bonds		2027	4.74		60,000		60,000
Unsecured corporate bonds		2032	4.69		40,000		40,000
Unsecured corporate bonds		2026	3.65		110,000		110,000
Unsecured corporate bonds		2028	3.83		190,000		190,000
Unsecured corporate bonds		2026	3.72		80,000		80,000
Unsecured corporate bonds		2028	3.80		200,000		200,000
Unsecured corporate bonds		2030	3.96		70,000		70,000
Unsecured corporate bonds		2026	4.54		115,000		115,000
Unsecured corporate bonds		2028	4.68		100,000		100,000
Unsecured corporate bonds		2030	4.72		50,000		50,000
Unsecured corporate bonds		2033	4.72		30,000		30,000
Unsecured corporate bonds		2027	3.72		180,000		—
Unsecured corporate bonds		2029	3.73		110,000		—
Unsecured corporate bonds		2034	3.92		110,000		—
Unsecured corporate bonds		2027	2.91		170,000		—
Unsecured corporate bonds		2029	2.92		90,000		—
Unsecured corporate bonds		2034	2.96		40,000		—
Unsecured corporate bonds(*1)		2024	2.09		—		160,000
Unsecured corporate bonds(*1)	Operating and refinancing fund	2024	1.71		—		100,000
Unsecured corporate bonds(*1)		2026	1.86		50,000		50,000
Unsecured corporate bonds(*1)		2025	1.64		100,000		100,000
Unsecured corporate bonds(*1)	Refinancing fund	2025	1.41		160,000		160,000
Unsecured corporate bonds(*1)		2024	1.69		—		100,000
Unsecured corporate bonds(*1)		2025	2.58		100,000		100,000
Unsecured corporate bonds(*1)		2032	2.92		50,000		50,000

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

17.	Borrowings and Debentures, Continued
(3)	Debentures as of December 31, 2024 and 2023 are as follows, Continued:
---	---
(In millions of won and thousands of U.S. dollars)
---	---	---	---	---	---	---	---	---	---	---	---
	Purpose	Maturity		Annual<br>interest rate(%)		December 31,<br>2024			December 31,2023
Unsecured corporate bonds(*1)	Operating and refinancing fund		2025		4.21		50,000			50,000
Unsecured corporate bonds(*1)			2026		4.28		100,000			100,000
Unsecured corporate bonds(*1)			2028		4.37		90,000			90,000
Unsecured corporate bonds(*1)	Facility fund		2026		4.87		100,000			100,000
Unsecured corporate bonds(*1)			2028		5.00		60,000			60,000
Unsecured corporate bonds(*1)	Refinancing fund		2027		3.89		170,000			—
Unsecured corporate bonds(*1)			2029		3.93		60,000			—
Unsecured corporate bonds(*1)	Facility and Refinancing fund		2027		3.06		130,000			—
Unsecured corporate bonds(*1)			2029		3.06		115,000			—
Unsecured corporate bonds(*1)			2031		3.11		50,000			—
Unsecured global bonds	Operating fund		2027		6.63		588,000<br> <br>(USD 400,000	)		515,760<br> <br>(USD 400,000	)
Unsecured global bonds(*1)	Refinancing fund		2028		4.88		441,000<br> <br>(USD 300,000	)		386,820<br> <br>(USD 300,000	)
Floating rate notes(*2)	Operating fund		2025		SOFR rate<br> <br>+ 1.17		441,000<br> <br>(USD 300,000	)		386,820<br> <br>(USD 300,000	)
Convertible bonds(*3)			2028		—		4,410<br> <br>(USD 3,000	)		3,868<br> <br>(USD 3,000	)
Convertible bonds(*3)			2028		—		—			3,868<br> <br>(USD 3,000	)
Convertible bonds(*3)			2028		—		—			2,579<br> <br>(USD 2,000	)
Convertible bonds(*3)			2028		—		—			10,444<br> <br>(USD 8,100	)
Convertible bonds(*3)			2028		—		23,741<br> <br>(USD 16,150	)		20,824<br> <br>(USD 16,150	)
Convertible bonds(*3)			2028		—		11,392<br> <br>(USD 7,750	)		9,993<br> <br>(USD 7,750	)
Convertible bonds(*3)			2028		—		11,760<br> <br>(USD 8,000	)		10,315<br> <br>(USD 8,000	)
							8,526,303			8,351,291
Less: discounts on bond							(15,023	)		(25,648	)
							8,511,280			8,325,643
Less: current portions of bonds							(2,147,634	)		(1,219,344	)
						~~W~~	6,363,646			7,106,299

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

17.	Borrowings and Debentures, Continued
(3)	Debentures as of December 31, 2024 and 2023 are as follows, Continued:
---	---
(*1)	Unsecured corporate bonds were issued by SK Broadband Co., Ltd., a subsidiary of the Parent Company.<br>
---	---
(*2)	Applied interest rates are SOFR rate of 4.49% and 5.38% as of December 31, 2024 and 2023, respectively.<br>
---	---
(*3)	Convertible bonds were issued by SAPEON Inc., a subsidiary of the Parent Company, and the conditions for<br>issuing convertible bonds and changes are as follows:
---	---
1)	As of December 31, 2024, the conditions for issuing convertible bonds are as follows:<br>
---	---
(In millions of won and thousands of U.S. dollars)
---	---	---	---	---	---	---	---	---	---	---	---
	Series
	1		5			6			7
Total amount of convertible bonds authorized		4,410 ( 3,000		23,741<br> <br>(USD 16,150	)		11,392<br> <br>(USD 7,750	)		11,760<br> <br>(USD 8,000	)
Coupon rate		0% (However, if not converted, 4% from January 1, 2025, to threeyears from the issue date, and 8% thereafter until the maturity of theconvertible bonds)
Repayment of interest and principal		Lump-sum repayment at maturity with accrued interest added to theissued amount
Convertible period		Until the maturity date or the mandatory conversion date
Type of shares to be issued upon conversion		Registered common stock or securities identical to subsequentinvestments
Conversion ratio		100%
Conversion price (In U.S. dollars)		410.22 per share
Early redemption right		Exercisable from January 1, 2025, in case of non-fulfillment of certainconditions

All values are in US Dollars.

The conversion rights of the aforementioned convertible bonds are classified as equity.

2)	The carrying amount of changes in the liability component (present value of non-convertible bonds) of the<br>convertible bonds for the year ended December 31, 2024 are as follows
(In millions of won and thousands of U.S. dollars)
---	---	---	---
	2024
Beginning balance		59,235<br> <br>(USD 45,939	)
Repayment		18,778<br> <br>(USD 14,230	)
Amortization based on effective interest rate		17,279<br> <br>(USD 7,567	)
Ending balance		57,736
		(USD 39,276	)

The liability component of convertible bonds (present value of non-convertible bonds) is measured at amortized cost using the effective interest rate.

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

18.	Long-term Payables – other
(1)	As of December 31, 2024 and 2023, details of long-term payables – other which consist of payables<br>related to the acquisition of frequency usage rights are as follows (See note 16):
---	---
(In millions of won)
---	---	---	---	---	---	---
	December 31, 2024			December 31, 2023
Long-term payables – other	~~W~~	921,075			1,290,225
Present value discount on long-term payables – other		(13,355	)		(29,772	)
Current portion of long-term payables – other		(367,765	)		(367,770	)
Carrying amount as of December 31	~~W~~	539,955			892,683
(2)	The sum of portions repaid among the principal of long-term payables – other for the years ended<br>December 31, 2024 and 2023 amounts to ~~W~~369,150 million and ~~W~~400,245 million, respectively. The repayment schedule of the principal amount of long-term payables – other as of December 31, 2024 is as<br>follows:
---	---
(In millions of won)
---	---	---
	Amount
Less than 1 year	~~W~~	369,150
1 ~ 3 years		460,538
3 ~ 5 years		91,387
	~~W~~	921,075

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

19.	Provisions

Changes in provisions for the years ended December 31, 2024 and 2023 are as follows:

(In millions of won)
	2024																		As of December 31,2024
	Beginningbalance		Increase		Utilization			Reversal			Changes inconsolidationscope			*Other()**			Endingbalance		Current		Non-current
Provision for restoration	~~W~~	120,024		6,475		(3,555	)		(1,053	)		(351	)		(1,917	)		119,623		49,579		70,044
Emission allowance		1,182		1,410		(130	)		(2,025	)		—			—			437		437		—
Other provisions		218		—		—			(218	)		—			—			—		—		—
	~~W~~	121,424		7,885		(3,685	)		(3,296	)		(351	)		(1,917	)		120,060		50,016		70,044
(*)	Other includes amounts reclassified as liabilities held for sale for the year ended December 31, 2024.<br>
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	2023															As of December 31,2023
	Beginningbalance		Increase		Utilization			Reversal			Other			Endingbalance		Current		Non-<br>current
Provision for restoration	~~W~~	115,089		8,041		(2,397	)		(714	)		5			120,024		37,073		82,951
Emission allowance		2,186		2,404		(635	)		(2,773	)		—			1,182		1,182		—
Other provisions		1,823		—		(1,005	)		(108	)		(492	)		218		—		218
	~~W~~	119,098		10,445		(4,037	)		(3,595	)		(487	)		121,424		38,255		83,169

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

20.	Defined Benefit Liabilities (Assets)
(1)	Details of defined benefit liabilities (assets) as of December 31, 2024 and 2023 are as follows:<br>
---	---
(In millions of won)
---	---	---	---	---	---	---
	December 31, 2024			December 31, 2023
Present value of defined benefit obligations	~~W~~	1,142,324			1,121,679
Fair value of plan assets		(1,294,567	)		(1,292,416	)
Defined benefit assets(*)		(154,329	)		(170,737	)
Defined benefit liabilities		2,086			—
(*)	Since the Group entities neither have legally enforceable right nor intention to settle the defined benefit<br>obligations of Group entities with defined benefit assets of other Group entities, defined benefit assets of Group entities have been separately presented from defined benefit liabilities.
---	---
(2)	Principal actuarial assumptions as of December 31, 2024 and 2023 are as follows:
---	---
	December 31, 2024	December 31, 2023
---	---	---
Discount rate for defined benefit obligations	3.35% ~ 4.24%	3.71% ~ 4.79%
Expected rate of salary increase	2.00% ~ 5.42%	2.00% ~ 5.27%

Discount rate for defined benefit obligation is determined based on market yields of high-quality corporate bonds with similar maturities for estimated payment term of defined benefit obligation. Expected rate of salary increase is determined based on the Group’s historical promotion index, inflation rate and salary increase ratio.

(3)	Changes in present value of defined benefit obligations for the years ended December 31, 2024 and 2023 are<br>as follows:
(In millions of won)
---	---	---	---	---	---	---
	2024			2023
Beginning balance	~~W~~	1,121,679			1,038,320
Current service cost		130,538			132,465
Interest cost		47,463			54,032
Remeasurement<br><br><br>- Demographic assumption		(761	)		810
- Financial assumption		49,788			(24,953	)
- Adjustment based on experience		(15,085	)		18,814
Benefit paid		(157,801	)		(99,396	)
Past service cost		6,795			—
Changes in consolidation scope		(2,458	)		—
Others(*)		(37,834	)		1,587
Ending balance	~~W~~	1,142,324			1,121,679
(*)	Others include changes in liabilities due to employees’ transfers among affiliates and reclassification as<br>liabilities held for sale for the years ended December 31, 2024 and 2023.
---	---

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

20.	Defined Benefit Liabilities (Assets), Continued
(4)	Changes in fair value of plan assets for the years ended December 31, 2024 and 2023 are as follows:<br>
---	---
(In millions of won)
---	---	---	---	---	---	---
	2024			2023
Beginning balance	~~W~~	1,292,416			1,214,007
Interest income		54,215			62,058
Remeasurement		729			(2,140	)
Contributions		124,921			108,224
Benefit paid		(131,031	)		(90,452	)
Changes in consolidation scope		(2,151	)		—
Others(*)		(44,532	)		719
Ending balance	~~W~~	1,294,567			1,292,416
(*)	Others include changes in assets due to employees’ transfers among affiliates and reclassification as<br>assets held for sale for the years ended December 31, 2024 and 2023.
---	---

The Group’s expected contributions to the defined benefit plan for the year ended December 31, 2025, amounts to ~~W~~188,339 million.

(5)	Total cost of defined benefit plan, which is recognized in profit or loss for the years ended December 31,<br>2024 and 2023 are as follows:
(In millions of won)
---	---	---	---	---	---	---
	2024			2023
Current service cost	~~W~~	130,538			132,465
Net interest income		(6,752	)		(8,026	)
Past service cost		6,795			—
	~~W~~	130,581			124,439

Costs related to the defined benefit plan except for the amounts transferred to construction in progress are included in labor expenses and research and development expenses.

(6)	Details of plan assets as of December 31, 2024 and 2023 are as follows:
(In millions of won)
---	---	---	---	---
	December 31, 2024		December 31, 2023
Equity instruments	~~W~~	67,184		72,619
Debt instruments		394,138		162,374
Short-term financial instruments, etc.		833,245		1,057,423
	~~W~~	1,294,567		1,292,416

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

20.	Defined Benefit Liabilities (Assets), Continued
(7)	Sensitivity analysis
---	---

As of December 31, 2024, effects on defined benefit obligations if each of significant actuarial assumptions changes within expectable and reasonable range are as follows:

(In millions of won)
	0.5% Increase		0.5% Decrease
Discount rate	~~W~~	(39,658)		42,443
Expected salary increase rate		42,433		(40,047	)

The sensitivity analysis does not consider dispersion of all cash flows that are expected from the plan but provides approximate values of sensitivity for the assumptions used.

A weighted average duration of defined benefit obligations as of December 31, 2024 and 2023 are 7.46 years and 7.27 years, respectively.

(8)	Defined contribution plan

The amount recognized as an expense for defined contribution plans are ~~W~~29,784 million and ~~W~~20,404 million for the years ended December 31, 2024 and 2023, respectively.

21.	Derivative Instruments
(1)	Currency and interest rate swap contracts under cash flow hedge accounting as of December 31, 2024 are as<br>follows:
---	---
(In millions of won, thousands of foreign currencies)
---	---	---	---	---
Borrowing date	Hedging Instrument (Hedged item)	Hedged risk	Financial institution	Duration of contract
Jul. 20, 2007	Fixed-to-fixed cross currency swap (U.S. dollar denominated bonds face value of USD<br>400,000)	Foreign currency risk	Morgan Stanley and four other banks	Jul. 20, 2007 ~ Jul. 20, 2027
Mar. 4, 2020	Floating-to-fixed cross currency interest rate swap (U.S. dollar denominated bonds face value of<br>USD 300,000)	Foreign currency risk and interest rate risk	Citibank	Mar. 4, 2020 ~ Jun. 4, 2025
Jun. 28, 2023	Fixed-to-fixed cross currency swap (U.S. dollar denominated bonds face value of USD<br>300,000)	Foreign currency risk	Citi bank,<br><br><br>Shinhan Bank,<br> <br>Korea Development<br><br><br>Bank and J.P. Morgan	Jun. 28, 2023 ~ Jun. 28, 2028
Oct. 7, 2024	Floating-to-fixed interest rate swap (Korean won borrowing amounting to KRW 200,000)	Interest rate risk	DBS Bank Ltd	Oct. 10, 2024 ~ Oct. 8, 2026

As of December 31, 2024, the changes in fair value of derivatives designated as hedging instrument, which are all effective in hedging, were recognized in full in other comprehensive income.

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

21.	Derivative Instruments, Continued
(2)	SK Broadband Co., Ltd., a subsidiary of the Parent Company, entered into Total Return Swap(TRS) contract<br>amounting to ~~W~~270,000 million and ~~W~~80,000 million with beneficiary certificates as underlying asset with IGIS Professional Investment Type Private Real Estate Investment Trust No. 156 and Hana Professional<br>Alternative Investment Type Private Real Estate Investment Trust No. 62, respectively. The contracts consist of the settlement of the difference resulting from the change in the value of the real estate on the maturity date of the contract and<br>the settlement of the difference between the dividend and the standard dividend during the contract period. SK Broadband Co., Ltd. has an obligation to guarantee fixed rate of returns to the other party to each contract. SK Broadband Co., Ltd.<br>recognized long-term derivative financial assets of ~~W~~64,926 million and ~~W~~21,027 million for TRS as of December 31, 2024 and 2023, respectively. Long-term derivative financial assets were measured using the<br>discounted present value methods for estimated future cash flows.
---	---
(3)	In relation to the business acquisition by SK Broadband Co., Ltd. during the year ended December 31, 2020,<br>the Parent Company has entered into a shareholders’ agreement with the shareholders of the acquirees on November 13, 2024. Pursuant to the shareholders’ agreement, the Parent Company entered into a share purchase agreement to purchase<br>24.76% of the shares of SK Broadband Co., Ltd. for ~~W~~1,145,870 million. The Parent Company has determined that it currently has ownership of the shares of SK Broadband Co., Ltd. for which the above contract was concluded, and<br>accounted for the ownership of the shares in the subsidiary accordingly.
---	---
(4)	The Parent Company has entered into the agreement with HAEGIN Co., Ltd., whereby the Parent Company has been<br>granted contingent subscription right to acquire HAEGIN Co., Ltd.‘s common stock for the year ended December 31, 2022. The Parent Company is able to exercise the right in accordance with the agreement when certain conditions are met. There<br>is no balance for derivative financial assets as of December 31, 2024.
---	---
(5)	SAPEON Inc., a subsidiary of the Parent Company, disposed of a portion of shares of Rebellions Inc. (formerly,<br>SAPEON Korea Inc.) for the year ended December 31, 2024, and entered into a Price Return Swap (PRS) in which the buyer receives the difference between the amount of sale and the settlement amount when selling the shares. The Parent Company<br>recognized a long-term derivative financial liability of ~~W~~2,689 million for the Price Return Swap (PRS) as of December 31, 2024.
---	---

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

21.	Derivative Instruments, Continued
(6)	The fair value of derivative financial instruments to which the Group applies cash flow hedging is recorded in<br>the consolidated financial statements as derivative financial assets, long-term derivative financial assets, and long-term derivative financial liabilities. As of December 31, 2024, details of fair values of the derivative assets and<br>liabilities are as follows:
---	---
(In millions of won, thousands of foreign currencies)
---	---	---	---	---	---
Hedging instrument (Hedged item)			Fair value
Non-current assets:
Fixed-to-fixed cross currency swap (U.S. dollar denominated bonds face value of <br>400,000)	148,172			148,172
Fixed-to-fixed cross currency swap (U.S. dollar denominated bonds face value of <br>300,000)	41,975			41,975
Current assets:
Floating-to-fixed cross currency interest rate swap (U.S. dollar denominated bonds face value of<br> 300,000)	80,650			80,650
	270,797			270,797
Non-current liabilities:
Floating-to-fixed interest rate swap (Korean won borrowing amounting to KRW 200,000)	(748	)		(748	)
	(748	)		(748	)

All values are in US Dollars.

As of December 31, 2024, the changes in fair value of derivatives designated as hedging instrument, which are all effective in hedging, were recognized in full in other comprehensive income.

(7)	The fair value of derivatives held for trading is recorded in the consolidated financial statements as<br>derivative financial assets, long-term financial assets, and long-term derivative financial liabilities. As of December 31, 2024, details of fair values of the derivative assets and liabilities are as follows:
(In millions of won)
---	---	---	---	---	---	---
	Held for trading			Fair value
Current assets:
Contract for difference settlement	~~W~~	38,850			38,850
Non-current assets:
Contract for difference settlement		31,461			31,461
	~~W~~	70,311			70,311
Non-current liabilities:
Price Return Swap (PRS)	~~W~~	(2,689	)		(2,689	)
	~~W~~	(2,689	)		(2,689	)

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

22.	Share Capital and Capital Surplus and Others
(1)	Details of share capital as of December 31, 2024 and 2023 are as follows:
---	---
(In millions of won, except for share data)
---	---	---	---	---
	December 31, 2024		December 31, 2023
Number of authorized shares		670,000,000		670,000,000
Par value (in won)	~~W~~	100		100
Number of issued shares		214,790,053		218,833,144
Share capital:
Common share(*)	~~W~~	30,493		30,493
(*)	In 2002, 2003 and 2024, the Parent Company retired treasury shares with reduction of its retained earnings<br>before appropriation. As a result, the Group’s issued shares have decreased without change in share capital.
---	---
(2)	Changes in issued shares for the years ended December 31, 2024 and 2023 are as follows:<br>
---	---
(In shares)
---	---	---	---	---	---
	2024			2023
Issued shares as of January 1		218,833,144			218,833,144
Retirement of treasury shares(*)		(4,043,091	)		—
Issued shares as of December 31		214,790,053			218,833,144
(*)	The Parent Company retired 4,043,091 treasury shares with reduction of its retained earnings before<br>appropriation for the year ended December 31, 2024.
---	---
(3)	Details of shares outstanding as of December 31, 2024 and 2023 are as follows:
---	---
(In shares)	December 31, 2024						December 31, 2023
---	---	---	---	---	---	---	---	---	---	---	---	---
	Issued<br>shares		Treasuryshares		Outstandingshares		Issued<br>shares		Treasuryshares		Outstandingshares
Shares outstanding		214,790,053		1,903,711		212,886,342		218,833,144		6,133,414		212,699,730
(4)	Details of capital surplus and others as of December 31, 2024 and 2023 are as follows:<br>
---	---
(In millions of won)
---	---	---	---	---	---	---
	December 31, 2024			December 31, 2023
Paid-in surplus	~~W~~	1,771,000			1,771,000
Treasury shares (Note 23)		(92,962	)		(301,981	)
Hybrid bonds (Note 24)		398,509			398,509
Share option (Note 25)		14,498			9,818
Others(*)		(14,045,981	)		(13,705,990	)
	~~W~~	(11,954,936	)		(11,828,644	)
(*)	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.
---	---

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

23.	Treasury Shares
(1)	Treasury shares as of December 31, 2024 and 2023 are as follows:
---	---
(In millions of won, except for the number of shares)
---	---	---	---	---
	December 31, 2024		December 31, 2023
Number of shares		1,903,711		6,133,414
Acquisition cost	~~W~~	92,962		301,981
(2)	Changes in treasury shares for the years ended December 31, 2024 and 2023 are as follows:<br>
---	---
(In shares)
---	---	---	---	---	---	---
	2024			2023
Treasury shares as of January 1		6,133,414			801,091
Acquisition(*1)		317,000			5,773,410
Disposal(*2)		(503,612	)		(441,087	)
Retirement of treasury shares(*3)		(4,043,091	)		—
Treasury shares as of December 31		1,903,711			6,133,414
(*1)	The Parent Company acquired 317,000 of its treasury shares for ~~W~~15,788 million and 5,773,410<br>of its treasury shares for ~~W~~285,487 million in an effort to increase shareholder value by stabilizing its stock price for the years ended December 31, 2024 and 2023, respectively.
---	---
(*2)	The Parent Company distributed 503,612 treasury shares (acquisition cost: ~~W~~24,807 million) as<br>bonus payment to the employees, resulting in gain on disposal of treasury shares of ~~W~~181 million for the year ended December 31, 2024. Also, the Parent Company distributed 441,087 treasury shares (acquisition cost:<br>~~W~~20,208 million) as bonus payment to the employees, resulting in gain on disposal of treasury shares of ~~W~~212 million for the year ended December 31, 2023.
---	---
(*3)	The Parent Company retired 4,043,091 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 for the year ended December 31, 2024.
---	---

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

24.	Hybrid Bonds

Hybrid bonds classified as equity as of December 31, 2024 and 2023 are as follows:

(In millions of won)
	Type	Issuance date		*Maturity(1)**		*Annualinterestrate(%)(2)**		December 31,2024			December 31,2023
Series 3 hybrid bonds	Unsecured subordinated bearer bond		June 5, 2023		June 5, 2083		4.95	~~W~~	400,000			400,000
Issuance costs									(1,491	)		(1,491	)
								~~W~~	398,509			398,509

The Parent Company redeemed previously issued hybrid bonds and issued new ones for the year ended December 31, 2023. As there is no contractual obligation to deliver financial assets to the holders of hybrid bonds, the Parent Company classified the hybrid bonds as equity.

These are subordinated bonds that rank before common shares in the event of a liquidation or reorganization of the Parent Company.

(*1)	The Parent Company has a right to extend the maturity without any notice or announcement.<br>
(*2)	Annual interest rate is determined as yield rate of 5-year national bond plus premium. According to the step-up<br>clause, additional premium of 0.25% and 0.75%, respectively, after 10 years and 25 years from the issuance date are applied.
---	---

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

25.	Share based payment Arrangement
25.1	Share-based payment arrangement of the Parent Company
---	---
(1)	The terms and conditions related to the grants of the share-based payment arrangement are as follows:<br>
---	---
1)	Share-based payment arrangement with cash alternatives
---	---
	Series
---	---	---	---	---	---	---
	5		6		*7-1()**	*7-2()**
Grant date		March 26, 2020		March 25, 2021	March 25, 2022
Types of shares to be issued		Registered common shares
Grant method		Reissue of treasury shares, Cash settlement
Number of shares (in share)		370,355		71,726	98,425	96,820
Exercise price (in won)		38,452		50,276	56,860	56,860
Exercise period		Mar. 27, 2023<br>~<br> <br>Mar. 26, 2027		Mar. 26, 2023<br>~<br> <br>Mar. 25, 2026	Mar. 26, 2025<br> ~<br>Mar. 25, 2029	Mar. 26, 2024<br> ~<br>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	2 years’<br> <br>service from<br><br><br>the grant date	2 years’<br> <br>service from<br><br><br>the grant date
(*)	For the year ended December 31, 2024, 196,850 shares of stock options granted in the 7^th^ -1 series and 12,884 shares of stock options granted in the 7^th^ -2 series were canceled.
---	---

For the year ended December 31, 2024, the entire amount of remaining stock options granted in the 4^th^ series and some portions of stock options granted in the 3^rd^, 5^th^, and 6^th^ series were exercised, and the entire amount of remaining stock options granted in the 1^st^ -3 and 3^rd^ series was fully forfeited.

2)	Cash-settled share-based payment arrangement
	Granted in 2022
---	---
	Share appreciation rights of<br> <br>SK Telecom Co., Ltd.
Grant date	January 1, 2022
Grant method	Cash settlement
Number of shares (in share)	338,525
Exercise price (in won)	56,860
Exercise period	Jan. 1, 2024 ~ Mar. 25, 2025
Vesting conditions	2 years’ service from the grant date

The entire amount of remaining share appreciation rights for shares of SK Telecom Co., Ltd. and SK Square Co., Ltd. granted in 2021 was fully exercised for the year ended December 31, 2024.

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

25.	Share based payment Arrangement, Continued
25.1	Share-based payment arrangement of the Parent Company, Continued:
---	---
(1)	The terms and conditions related to the grants of the share-based payment arrangement are as follows,<br>Continued:
---	---
3)	Equity-settled share-based payment arrangement
---	---

The Parent Company newly established Performance Share Units (“PSU”) for executives of the Parent Company and major subsidiaries as part of the compensation based on the growth of corporate value for the year ended December 31, 2024, and the details are as follows:

	PSU of SK Telecom Co., Ltd.
Grant date	March 28, 2023	March 26, 2024
Types of shares to be issued	Registered common shares of the Parent Company
Grant method	Reissue of treasury shares
Number of shares(*)	Fluctuates according to the share price on the expiration date and the cumulative increase rate of KOSPI200
Reference share price (in won)	47,280	52,720
Reference index (KOSPI200)	315	362
Maturity (exercise date)	The day in which the annual general meeting of shareholders is held after 3 years from the grant date
Vesting conditions	Full service in the year in which the grant date is included
(*)	The initial amount granted is a total of ~~W~~10,813 million for 2023 and ~~W~~12,835<br>million for 2024, and the amount calculated according to the adjustment rate based on the share price on the expiration date and the cumulative increase rate of KOSPI200 will be paid in shares.
---	---

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

25.	Share based payment Arrangement, Continued
25.1	Share-based payment arrangement of the Parent Company, Continued:
---	---
(2)	Share compensation expense for share-based payment arrangements with cash alternatives recognized for the year<br>ended December 31, 2024 and the remaining share compensation expense to be recognized in subsequent periods are as follows:
---	---
(In millions of won)	Share compensation expense
---	---	---
As of December 31, 2023	~~W~~	157,750
For the year ended December 31, 2024		846
In subsequent periods		—
	~~W~~	158,596

The liabilities recognized by the Parent Company in relation to the share-based payment arrangement with cash alternatives are ~~W~~7,283 million and ~~W~~5,530 million, respectively, which are included in accrued expenses as of December 31, 2024 and 2023.

As of December 31, 2024 and 2023, the carrying amount of liabilities recognized by the Parent Company in relation to the cash-settled share-based payment arrangement are ~~W~~305 million and ~~W~~1,133 million, respectively.

Share compensation expenses recognized for equity-settled share-based payment arrangements are ~~W~~6,286 million and ~~W~~6,267 million for the years ended December 31, 2024 and 2023.

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

25.	Share based payment Arrangement, Continued
25.1	Share-based payment arrangement of the Parent Company, Continued:
---	---
(3)	The Parent Company used option-pricing models, including the binomial model, on the measurement of the fair<br>value of the share options at the remeasurement date and the inputs used in the model are as follows:
---	---
1)	Share-based payment arrangement with cash alternatives
---	---
(i)	SK Telecom Co., Ltd.
---	---
(In won)	Series
---	---	---	---	---	---	---	---	---	---	---	---	---
	5			6			7-1			7-2
Risk-free interest rate		2.74	%		2.73	%		2.81	%		2.74	%
Estimated option’s life		7 years			5 years			7 years			5 years
Share price on the remeasurement date		55,200			55,200			55,200			55,200
Expected volatility		16.50	%		16.50	%		16.50	%		16.50	%
Expected dividends yield		6.41	%		6.41	%		6.41	%		6.41	%
Exercise price		38,452			50,276			56,860			56,860
Per-share fair value of the option		16,748			5,668			3,820			3,080
(ii)	SK Square Co., Ltd.
---	---
(In won)	Series
---	---	---	---	---	---	---
	5			6
Risk-free interest rate		1.52	%		1.55	%
Estimated option’s life		7 years			5 years
Share price (Closing price on the preceding day)		34,900			49,800
Expected volatility		8.10	%		25.70	%
Expected dividends yield		5.70	%		4.00	%
Exercise price		38,452			50,276
Per-share fair value of the option		192			8,142

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

25.	Share based payment Arrangement, Continued
25.1	Share-based payment arrangement of the Parent Company, Continued:
---	---
(3)	The Parent Company used option-pricing models, including the binomial model, on the measurement of the fair<br>value of the share options at the remeasurement date and the inputs used in the model are as follows, Continued:
---	---
2)	Cash-settled share-based payment arrangement
---	---
(In won)	Granted in 2022
---	---	---	---
	Share appreciation rights of<br>SK Telecom Co., Ltd.
Risk-free interest rate		2.87	%
Estimated option’s life		3.25 years
Share price on the<br><br><br>remeasurement date		55,200
Expected volatility		16.50	%
Expected dividends yield		6.41	%
Exercise price		56,860
Per-share fair value of<br><br><br>the option		902
3)	Equity-settled share-based payment arrangement
---	---
(In won)	Granted in 2023			Granted in 2024
---	---	---	---	---	---	---
	PSU of SK Telecom Co., Ltd.			PSU of SK Telecom Co., Ltd.
Risk-free interest rate		3.26	%		3.30	%
Estimated option’s life		3 years			3 years
Share price on the grant date		48,500			54,100
Expected volatility		18.67	%		15.90	%
Expected dividends yield		4.90	%		5.40	%
Per-share fair value of the option		27,525			25,920

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

25.	Share based payment Arrangement, Continued
25.2	Share-based payment arrangement by SAPEON Inc., a subsidiary of the Parent Company
---	---
(1)	The terms and conditions related to the grants of the share-based payment arrangement are as follows:<br>
---	---
	Series
---	---	---	---	---	---	---
	1-1		1-2		2
Grant date		February 28, 2023				November 13, 2023
Types of shares to be issued		Registered common shares of SAPEON Inc.
Grant method		Issuance of shares
Number of shares (in share)		800		21,050		600
Exercise price (in U.S. dollars)		100.0
Exercise period(*)		Jan. 4, 2024<br>~<br> <br>Jan. 4, 2032		Apr. 1, 2024<br>~<br> <br>Apr. 1, 2032		Feb. 1, 2025<br> <br>~<br><br><br>Feb. 1, 2033
Vesting conditions		2 years’ service from the commencement date, 50%<br><br><br>3 years’ service from the commencement date, 25%<br><br><br>4 years’ service from the commencement date, 25%
(*)	The exercise periods vary as vesting periods for each share-based payment arrangement are different. The<br>exercise period was disclosed based on the vesting period with the highest number of grants.
---	---
(2)	Share compensation expense for share-based payment arrangements for the year ended December 31, 2024 and<br>the remaining share compensation expense to be recognized in subsequent periods are as follows:
---	---
(In millions of won)
---	---	---
	Share compensation expense
As of December 31, 2023	~~W~~	2,555
For the year ended December 31, 2024		402
In subsequent periods		—
	~~W~~	2,957
(3)	SAPEON Inc., a subsidiary of the Parent Company, used binomial option pricing model in the measurement of the<br>fair value of the share options at grant date and the inputs used in the model are as follows:
---	---
(In U.S. dollars)
---	---	---	---	---	---	---	---	---	---
	1-1			1-2			2
Risk-free interest rate		4.18	%		4.16	%		4.67	%
Estimated option’s life		5.18 years			5.42 years			5.55 years
Underlying share price		107.8			107.8			118.1
Expected volatility		43.50	%		43.00	%		43.00	%
Expected dividends yield		0.00	%		0.00	%		0.00	%
Exercise price		100.0			100.0			100.0
Per-share fair value of the option		50.7			51.4			61.4

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

26.	Retained Earnings
(1)	Retained earnings as of December 31, 2024 and 2023 are as follows:
---	---
(In millions of won)
---	---	---	---	---
	December 31, 2024		December 31, 2023
Appropriated:
Legal reserve	~~W~~	22,320		22,320
Reserve for business expansion		9,981,138		9,831,138
Reserve for technology development		4,715,300		4,565,300
		14,696,438		14,396,438
Unappropriated		8,257,369		8,381,223
	~~W~~	22,976,127		22,799,981
(2)	Legal reserve
---	---

The Korean Commercial Act requires the Parent Company to appropriate as a legal reserve at least 10% of cash dividends paid for each accounting period until the reserve equals 50% of outstanding share capital. The legal reserve may not be utilized for cash dividends, but may only be used to offset a future deficit, if any, or may be transferred to share capital.

27.	Reserves
(1)	Details of reserves, net of taxes, as of December 31, 2024 and 2023 are as follows:
---	---
(In millions of won)
---	---	---	---	---	---	---
	December 31, 2024			December 31, 2023
Valuation gain on FVOCI	~~W~~	262,657			176,208
Other comprehensive income of investments in associates and joint ventures		315,283			182,702
Valuation loss on derivatives		(8,044	)		(1,488	)
Foreign currency translation differences for foreign operations		77,047			29,794
	~~W~~	646,943			387,216

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

27.	Reserves, Continued
(2)	Changes in reserves for the years ended December 31, 2024 and 2023 are as follows:
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---	---	---	---	---	---
	Valuation gain<br>on financialassets at FVOCI		Othercomprehensiveincome ofinvestments inassociates and<br>joint ventures		Valuation gain(loss) onderivatives			Foreign currencytranslationdifferences forforeign operations			Total
Balance as of January 1, 2023	~~W~~	173,281		173,477		14,463			30,012			391,233
Changes, net of taxes		2,927		9,225		(15,951	)		(218	)		(4,017	)
Balance as of December 31, 2023	~~W~~	176,208		182,702		(1,488	)		29,794			387,216
Balance as of January 1, 2024	~~W~~	176,208		182,702		(1,488	)		29,794			387,216
Changes, net of taxes		86,449		132,581		(6,556	)		47,253			259,727
Balance as of December 31, 2024	~~W~~	262,657		315,283		(8,044	)		77,047			646,943
(3)	Changes in valuation gain (loss) on financial assets at FVOCI for the years ended December 31, 2024 and<br>2023 are as follows:
---	---
(In millions of won)
---	---	---	---	---	---
	2024		2023
Balance as of January 1	~~W~~	176,208		173,281
Amount recognized as other comprehensive income (loss) for the year, net of taxes		11,262		(18,883	)
Amount reclassified to retained earnings, net of taxes		75,187		21,810
Balance as of December 31	~~W~~	262,657		176,208
(4)	Changes in valuation gain (loss) on derivatives for the years ended December 31, 2024 and 2023 are as<br>follows:
---	---
(In millions of won)
---	---	---	---	---	---	---
	2024			2023
Balance as of January 1	~~W~~	(1,488	)		14,463
Amount recognized as other comprehensive income (loss) for the year, net of taxes		(12,636	)		(18,725	)
Amount reclassified to profit, net of taxes		6,080			2,774
Balance as of December 31	~~W~~	(8,044	)		(1,488	)

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

28.	Other Operating Expenses

Details of other operating expenses for the years ended December 31, 2024 and 2023 are as follows:

(In millions of won)
	2024		2023
Communication	~~W~~	34,037		32,238
Utilities		547,204		511,240
Taxes and dues		44,888		29,009
Repair		438,089		431,964
Research and development		378,079		369,507
Training		30,949		39,286
Bad debt for accounts receivable - trade		49,865		37,906
Travel		19,090		22,499
Supplies and other		116,920		130,330
	~~W~~	1,659,121		1,603,979
29.	Other Non-Operating Income and Expenses
---	---

Details of other non-operating income and expenses for the years ended December 31, 2024 and 2023 are as follows:

(In millions of won)
	2024		2023
Other non-operating income:
Gain on disposal of property and equipment and intangible assets	~~W~~	37,316		21,898
Others		34,972		28,468
	~~W~~	72,288		50,366
Other non-operating expenses:
Loss on impairment of property and equipment and intangible assets	~~W~~	94,736		10,369
Loss on disposal of property and equipment and intangible assets		17,427		9,369
Donations		15,712		14,766
Bad debt for accounts receivable – other		4,838		5,256
Others		72,122		7,534
	~~W~~	204,835		47,294

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

30.	Finance Income and Costs
(1)	Details of finance income and costs for the years ended December 31, 2024 and 2023 are as follows:<br>
---	---
(In millions of won)
---	---	---	---	---
	2024		2023
Finance income:
Interest income	~~W~~	87,245		70,055
Dividends		35,818		43,014
Gain on foreign currency transactions		32,260		19,065
Gain on foreign currency translations		9,344		1,199
Gain relating to financial instruments at FVTPL		190,368		115,043
	~~W~~	355,035		248,376
(In millions of won)
---	---	---	---	---
	2024		2023
Finance costs:
Interest expense	~~W~~	403,129		389,813
Loss on sale of accounts receivable – other		35,317		65,027
Loss on foreign currency transactions		30,892		21,693
Loss on foreign currency translations		3,575		1,227
Loss relating to financial instruments at FVTPL		133,006		49,641
	~~W~~	605,919		527,401
(2)	Details of interest income included in finance income for the years ended December 31, 2024 and 2023 are<br>as follows:
---	---
(In millions of won)
---	---	---	---	---
	2024		2023
Interest income on cash equivalents and financial instruments	~~W~~	57,731		44,921
Interest income on loans and others		29,514		25,134
	~~W~~	87,245		70,055
(3)	Details of interest expenses included in finance costs for the years ended December 31, 2024 and 2023 are<br>as follows:
---	---
(In millions of won)
---	---	---	---	---
	2024		2023
Interest expense on borrowings	~~W~~	31,718		29,917
Interest expense on debentures		272,846		247,105
Others		98,565		112,791
	~~W~~	403,129		389,813

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

30.	Finance Income and Costs, Continued
(4)	Finance income and costs by category of financial instruments for the years ended December 31, 2024 and<br>2023 are as follows. Bad debt expense (reversal of loss allowance) for accounts receivable – trade, loans and receivables are presented and explained separately in notes 6 and 35.
---	---
1)	Finance income and costs
---	---
(In millions of won)
---	---	---	---	---
	2024
	Finance income		Finance costs
Financial assets:
Financial assets at FVTPL	~~W~~	95,708		52,731
Financial assets at FVOCI		30,993		—
Financial assets at amortized cost		106,514		13,281
		233,215		66,012
Financial liabilities:
Financial liabilities at FVTPL		121,061		115,592
Financial liabilities at amortized cost		759		424,315
		121,820		539,907
	~~W~~	355,035		605,919
(In millions of won)
---	---	---	---	---
	2023
	Finance income		Finance costs
Financial assets:
Financial assets at FVTPL	~~W~~	127,001		114,668
Financial assets at FVOCI		39,681		—
Financial assets at amortized cost		69,373		22,795
Derivatives designated as hedging instrument		2,480		—
		238,535		137,463
Financial liabilities:
Financial liabilities at FVTPL		6,717		—
Financial liabilities at amortized cost		3,124		389,938
		9,841		389,938
	~~W~~	248,376		527,401

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

30.	Finance Income and Costs, Continued
(4)	Finance income and costs by category of financial instruments for the years ended December 31, 2024 and<br>2023 are as follows. Bad debt expense (reversal of loss allowance) for accounts receivable – trade, loans and receivables are presented and explained separately in notes 6 and 35, Continued:
---	---
2)	Other comprehensive income (loss), net of tax
---	---
(In millions of won)
---	---	---	---	---	---	---
	2024			2023
Financial assets:
Financial assets at FVOCI	~~W~~	11,253			(18,842	)
Derivatives designated as hedging instrument		(12,398	)		(11,520	)
		(1,145	)		(30,362	)
Financial liabilities:
Derivatives designated as hedging instrument		5,825			(5,940	)
	~~W~~	4,680			(36,302	)
(5)	Details of impairment losses for financial assets for the years ended December 31, 2024 and 2023 are as<br>follows:
---	---
(In millions of won)
---	---	---	---	---
	2024		2023
Accounts receivable – trade	~~W~~	49,865		37,906
Other receivables		4,838		5,256
	~~W~~	54,703		43,162

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

31.	Income Tax Expense
(1)	Income tax expenses for the years ended December 31, 2024 and 2023 consist of the following:<br>
---	---
(In millions of won)
---	---	---	---	---	---	---
	2024			2023
Current tax expense:
Current year	~~W~~	392,192			273,936
Current tax of prior years		(22,271	)		(11,590	)
		369,921			262,346
Deferred tax expense:
Changes in net deferred tax assets		4,749			79,896
Income tax expense:	~~W~~	374,670	****	****	342,242	****
(2)	The difference between income taxes computed using the statutory corporate income tax rates and the recorded<br>income taxes for the years ended December 31, 2024 and 2023 is attributable to the following:
---	---
(In millions of won)
---	---	---	---	---	---	---
	2024			2023
Profit before income tax	~~W~~	1,761,765			1,488,179
Income taxes at statutory income tax rate		450,819			382,517
Non-taxable income		(9,843	)		(3,091	)
Non-deductible expenses		15,216			15,725
Tax credit and tax reduction		(26,204	)		(64,829	)
Changes in unrecognized deferred taxes		(37,958	)		14,354
Income tax refund and others		(18,340	)		(5,878	)
Changes in tax rate		980			3,444
Income tax expense	~~W~~	374,670			342,242

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

31.	Income Tax Expense, Continued
(3)	Deferred taxes directly charged to (credited from) equity for the years ended December 31, 2024 and 2023<br>are as follows:
---	---
(In millions of won)
---	---	---	---	---	---	---
	2024			2023
Valuation gain (loss) on financial assets measured at fair value	~~W~~	(4,499	)		12,977
Share of other comprehensive gain (loss) of investment in associates and joint ventures		(15,628	)		292
Valuation gain on derivatives		1,902			5,631
Remeasurement of defined benefit liabilities (assets)		7,266			(2,672	)
Loss on disposal of treasury shares and others		(46	)		(53	)
	~~W~~	(11,005	)		16,175

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

31.	Income Tax Expense, Continued
(4)	Details of the changes in deferred tax assets (liabilities) for the years ended December 31, 2024 and 2023<br>are as follows:
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	2024
	Beginning			Deferred taxexpense(income)			Directly charged to(credited from) equity			Reclassified asliabilities heldfor sale			Changes inconsolidationscope			Ending
Deferred tax assets (liabilities) related to temporary differences:																		****
Loss allowance	~~W~~	75,115			1,475			—			—			—			76,590
Accrued interest income		(6,839	)		(1,395	)		—			7,266			—			(968	)
Financial assets measured at fair value		(2,526	)		(32,508	)		(4,499	)		—			—			(39,533	)
Investments in subsidiaries, associates and joint ventures		22,930			62,447			(15,628	)		—			—			69,749
Property and equipment and intangible assets		(419,413	)		(3,861	)		—			(318	)		—			(423,592	)
Provisions		1,319			12			—			—			—			1,331
Retirement benefit obligation		12,430			18,338			7,266			—			—			38,034
Valuation gain (loss) on derivatives		19,670			(7,094	)		1,902			—			—			14,478
Gain (loss) on foreign currency translation		20,667			(297	)		—			—			—			20,370
Incremental costs to acquire a contract		(718,211	)		(4,741	)		—			—			—			(722,952	)
Contract assets and liabilities		17,565			2,394			—			—			—			19,959
Right-of-use assets		(389,863	)		19,092			—			—			—			(370,771	)
Lease liabilities		388,091			6,115			—			—			—			394,206
Others		4,266			(47,646	)		(46	)		(7,486	)		278			(50,634	)
		(974,799	)		12,331			(11,005	)		(538	)		278			(973,733	)
Deferred tax assets related to unused tax loss carryforwards and tax creditcarryforwards:												****
Tax loss carryforwards		7,150			2,812			—			689			(10,651	)		—
Tax credit		147,022			(19,892	)		—			—			(4,597	)		122,533
		154,172			(17,080	)		—			689			(15,248	)		122,533
	~~W~~	(820,627	)		(4,749	)		(11,005	)		151			(14,970	)		(851,200	)

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

31.	Income Tax Expense, Continued
(4)	Details of the changes in deferred tax assets (liabilities) for the years ended December 31, 2024 and 2023<br>are as follows, Continued:
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---	---	---	---	---
	2023
	Beginning			Deferred taxexpense(income)			Directly charged to<br>(credited from) equity			Ending
Deferred tax assets (liabilities) related to temporary differences:												****
Loss allowance	~~W~~	75,042			73			—			75,115
Accrued interest income		(7,903	)		1,064			—			(6,839	)
Financial assets measured at fair value		(10,171	)		(5,332	)		12,977			(2,526	)
Investments in subsidiaries, associates and joint ventures		16,846			5,792			292			22,930
Property and equipment and intangible assets		(352,605	)		(66,808	)		—			(419,413	)
Provisions		1,629			(310	)		—			1,319
Retirement benefit obligation		30,619			(15,517	)		(2,672	)		12,430
Valuation gain on derivatives		12,768			1,271			5,631			19,670
Gain (loss) on foreign currency translation		20,633			34			—			20,667
Incremental costs to acquire a contract		(722,900	)		4,689			—			(718,211	)
Contract assets and liabilities		4,279			13,286			—			17,565
Right-of-use assets		(431,397	)		41,534			—			(389,863	)
Lease liabilities		428,648			(40,557	)		—			388,091
Others		85,716			(81,397	)		(53	)		4,266
		(848,796	)		(142,178	)		16,175			(974,799	)
Deferred tax assets related to unused tax loss carryforwards and tax creditcarryforwards:												****
Tax loss carryforwards		2,007			5,143			—			7,150
Tax credit		89,883			57,139			—			147,022
		91,890			62,282			—			154,172
	~~W~~	(756,906	)		(79,896	)		16,175			(820,627	)

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

31.	Income Tax Expense, Continued
(5)	Details of temporary differences, unused tax loss carryforwards and unused tax credits carryforwards which are<br>not recognized as deferred tax assets (liabilities), in the consolidated statements of financial position as of December 31, 2024 and 2023 are as follows:
---	---
(In millions of won)
---	---	---	---	---	---	---
	December 31, 2024			December 31, 2023
Loss allowance	~~W~~	77,433			77,837
Investments in subsidiaries, associates and joint ventures		(993,399	)		(480,667	)
Other temporary differences		103,405			64,004
Unused tax loss carryforwards		126,553			174,589

The amount of unused tax loss carryforwards which are not recognized as deferred tax assets as of December 31, 2024 are expiring within the following periods:

(In millions of won)
	Unused tax loss carryforwards
Less than 1 year	~~W~~	—
1 ~ 2 years		—
2 ~ 3 years		—
More than 3 years		126,553
	~~W~~	126,553
(6)	In accordance with the global minimum tax law (Pillar Two) which was applied from 2024, the Group is required<br>to pay additional taxes on the difference between the effective tax rate of each company in the Group in their respective jurisdictions and the minimum tax rate of 15%. The Group has determined that no additional taxes will be incurred under the<br>global minimum tax law (Pillar Two), and therefore, there is no amount recognized as income tax expense for the year ended December 31, 2024.
---	---

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

32.	Earnings per Share

Earnings per share is calculated to profit of the Parent Company per common share and dilutive potential common share, and details are as follows:

(1)	Basic earnings per share
1)	Basic earnings per share for the years ended December 31, 2024 and 2023 are calculated as follows:<br>
---	---
(In millions of won, except for share data and basic earnings per share)
---	---	---	---	---	---	---
	2024			2023
Basic earnings per share attributable to owners of the Parent Company:						****
Profit attributable to owners of the Parent Company	~~W~~	1,250,155			1,093,611
Interest on hybrid bonds		(19,800	)		(17,283	)
Profit attributable to owners of the Parent Company<br><br><br>on common shares		1,230,355			1,076,328
Weighted average number of common shares outstanding		212,848,138			217,264,615
Basic earnings per share (in won)	~~W~~	5,780			4,954

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

32.	Earnings per Share, Continued
(1)	Basic earnings per share, Continued
---	---
2)	The weighted average number of common shares outstanding for the years ended December 31, 2024 and 2023<br>are calculated as follows:
---	---
(In shares)
---	---	---	---	---	---	---
	2024
	Number of common shares			Weighted average number ofcommon shares
Issued shares as of January 1, 2024		218,833,144			218,833,144
Treasury shares as of January 1, 2024		(6,133,414	)		(6,133,414	)
Acquisition of treasury shares		(317,000	)		(315,314	)
Disposal of treasury shares		503,612			463,722
		212,886,342			212,848,138
(In shares)
---	---	---	---	---	---	---
	2023
	Number of common shares			Weighted average number ofcommon shares
Issued shares as of January 1, 2023		218,833,144			218,833,144
Treasury shares as of January 1, 2023		(801,091	)		(801,091	)
Acquisition of treasury shares		(5,773,410	)		(1,154,633	)
Disposal of treasury shares		441,087			387,195
		212,699,730			217,264,615
(2)	Diluted earnings per share
---	---
1)	Diluted earnings per share for the years ended December 31, 2024 and 2023 are calculated as follows:<br>
---	---
(In millions of won, except for share data and diluted earnings per share)
---	---	---	---	---
	2024		2023
Profit attributable to owners of the Parent Company on common shares	~~W~~	1,230,355		1,076,328
Adjusted weighted average number of common shares outstanding		213,428,916		217,452,721
Diluted earnings per share (in won)	~~W~~	5,765		4,950
2)	The adjusted weighted average number of common shares outstanding for the years ended December 31, 2024<br>and 2023 are calculated as follows:
---	---
(In shares)
---	---	---	---	---	---
	2024		2023
Outstanding shares as of January 1		212,699,730		218,032,053
Effect of treasury shares		148,408		(767,438	)
Effect of share option		580,778		188,106
Adjusted weighted average number of common shares outstanding		213,428,916		217,452,721

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

33.	Dividends
(1)	Details of dividends declared
---	---

Details of dividend declared in Parent Company for the years ended December 31, 2024 and 2023 are as follows:

(In millions of won, except for face value and share data)
Year	Dividend type	Number of sharesoutstanding		Face value(in won)		Dividend ratio			Dividends
2024	Cash dividends (Interim)		212,880,865		100		830	%	~~W~~	176,690
	Cash dividends (Interim)		212,886,342		100		830	%		176,696
	Cash dividends (Interim)		212,886,342		100		830	%		176,696
	Cash dividends (Year-end)		212,886,342		100		1,050	%		223,531
									~~W~~	753,613
2023	Cash dividends (Interim)		218,466,141		100		830	%	~~W~~	181,327
	Cash dividends (Interim)		218,473,140		100		830	%		181,333
	Cash dividends (Interim)		216,412,898		100		830	%		179,623
	Cash dividends (Year-end)		212,699,730		100		1,050	%		223,335
									~~W~~	765,618
(2)	Dividends yield ratio
---	---

Dividends yield ratios for the years ended December 31, 2024 and 2023 are as follows:

(In won)
Year	Dividend type	Dividend per share		Closing priceat year-end		Dividend yieldratio
2024	Cash dividends		3,540		55,200		6.41	%
2023	Cash dividends		3,540		50,100		7.07	%

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

34.	Categories of Financial Instruments
(1)	Financial assets by category as of December 31, 2024 and 2023 are as follows:
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---	---	---
	December 31, 2024
	Financialassets atFVTPL		Equityinstruments atFVOCI		Financialassets atamortized cost		Derivativeshedginginstrument		Total
Cash and cash equivalents(*1)	~~W~~	310,721		—		1,713,000		—		2,023,721
Financial instruments(*1)		5,000		—		319,263		—		324,263
Long-term investment securities(*2)		138,789		1,739,133		—		—		1,877,922
Accounts receivable – trade(*1)		—		—		2,000,382		—		2,000,382
Loans and other receivables(*1)		223,761		—		697,216		—		920,977
Derivative financial assets		70,311		—		—		270,797		341,108
	~~W~~	748,582		1,739,133		4,729,861		270,797		7,488,373
(*1)	Financial assets reclassified as assets held for sale as of December 31, 2024 are not included.<br>
---	---
(*2)	The Group designated ~~W~~1,739,133 million of equity instruments that are not held for trading as<br>financial assets at FVOCI.
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---	---	---
	December 31, 2023
	Financialassets atFVTPL		Equityinstrumentsat FVOCI		Financialassets atamortized cost		Derivativeshedginginstrument		Total
Cash and cash equivalents	~~W~~	313,340		—		1,141,638		—		1,454,978
Financial instruments		62,364		—		232,945		—		295,309
Long-term investment securities(*)		280,650		1,398,734		—		—		1,679,384
Accounts receivable – trade		—		—		1,990,849		—		1,990,849
Loans and other receivables		273,945		—		781,157		—		1,055,102
Derivative financial assets		32,324		—		—		116,210		148,534
	~~W~~	962,623		1,398,734		4,146,589		116,210		6,624,156
(*)	The Group designated ~~W~~1,398,734 million of equity instruments that are not held for trading as<br>financial assets at FVOCI.
---	---

100

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

34.	Categories of Financial Instruments, Continued
(2)	Financial liabilities by category as of December 31, 2024 and 2023 are as follows:
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---
	December 31, 2024
	Financial liabilitiesat FVTPL		Financial liabilitiesat amortized cost		Derivativeshedginginstrument		Total
Accounts payable – trade	~~W~~	—		126,508		—		126,508
Derivative financial liabilities		2,689		—		748		3,437
Borrowings		—		615,600		—		615,600
Debentures		—		8,511,280		—		8,511,280
Lease liabilities(*1,2)		—		1,637,951		—		1,637,951
Accounts payable - other and others(*2)		—		5,018,850		—		5,018,850
	~~W~~	2,689		15,910,189		748		15,913,626
(In millions of won)
---	---	---	---	---	---	---	---	---
	December 31, 2023
	Financial liabilitiesat FVTPL		Financial liabilities<br>at amortized cost		Derivativeshedginginstrument		Total
Accounts payable – trade	~~W~~	—		139,876		—		139,876
Derivative financial liabilities		295,876		—		9,212		305,088
Borrowings		—		718,078		—		718,078
Debentures		—		8,325,643		—		8,325,643
Lease liabilities(*1)		—		1,611,433		—		1,611,433
Accounts payable - other and others		—		4,539,838		—		4,539,838
	~~W~~	295,876		15,334,868		9,212		15,639,956
(*1)	The categorization of financial liabilities is not applicable to lease liabilities, but they are classified as<br>financial liabilities measured at amortized cost, considering the nature of measuring liabilities.
---	---

(*2) Financial liabilities reclassified as liabilities held for sale as of December 31, 2024 are not included

101

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

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

The Group 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, interest rates and price fluctuations. 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, long-term investment securities, accounts receivable – trade and other, 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 foreign exchange positions due to revenues and expenses from its global operations. Major foreign currencies where currency risk exists are USD, EUR and others. The Group determines its currency risk management policy after considering the nature of business and the presence of methods that mitigate the currency risk on each Group entity basis. The Group regularly evaluates, manages and reports foreign exchange exposure risk through the management systems to receivables and payables denominated in foreign currencies. 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.

Monetary assets and liabilities denominated in foreign currencies as of December 31, 2024 are as follows:

(In millions of won, thousands of foreign currencies)
				Liabilities
		Wonequivalent		Foreign<br>currencies		Wonequivalent
	116,234	~~W~~	170,865		1,022,374	~~W~~	1,502,890
	10,335		15,799		—		—
Others			508				23
		~~W~~	187,172			~~W~~	1,502,913

All values are in US Dollars.

In addition, the Group has entered into cross currency swaps to hedge against currency risk related to foreign currency debentures. (See note 21)

As of December 31, 2024, a hypothetical change in exchange rates by 10% would have increased (decreased) the Group’s profit before income tax and equity as follows:

(In millions of won)
					Equity
		If decreased by 10%			If increased by 10%		If decreased by 10%
	13,103		(13,103	)		13,103		(13,103	)
	1,580		(1,580	)		1,580		(1,580	)
Others	49		(49	)		49		(49	)
	14,732		(14,732	)		14,732		(14,732	)

All values are in Euros.

102

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

35.	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 December 31, 2024, floating-rate borrowings and debentures amount to ~~W~~250,000 million and ~~W~~441,000 million, respectively, and the Group has entered into interest rate swaps to hedge interest rate risk related to some of floating-rate borrowings and floating-rate debentures. Therefore, profit before income tax for the year ended December 31, 2024 would not have been affected by the changes in interest rates of some of floating-rate borrowings and floating-rate debentures.

If the interest rate increases (decreases) 1%p with all other variables held constant, profit before income tax and equity for the year ended December 31, 2024 would change by ~~W~~500 million in relation to the floating-rate borrowings which have not entered into interest rate swaps.

As of December 31, 2024, the floating-rate long-term payables – other are ~~W~~921,075 million. If the interest rate increases (decreases) 1%p with all other variables held constant, profit before income tax and equity for the year ended December 31, 2024 would change by ~~W~~9,211 million in relation to the floating-rate long-term payables – other that are exposed to interest rate risk.

(iii) Price fluctuations risk

As of December 31, 2024, the Group holds equity instruments in an active trading market and is exposed to price fluctuation risk accordingly. Assuming all other variables remain constant, the impact of changes in per-share stock price of the equity securities on profit before income tax and equity securities for the year ended December 31, 2024 is as follows.


Profit before income tax				Equity
If increased by 10%		If decreased by 10%		If increased by 10%		If decreased by 10%
~~W~~	—		—	~~W~~	81,371		(81,371	)

103

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

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

The maximum credit exposure as of December 31, 2024 and 2023 are as follows:

(In millions of won)
	December 31, 2024		December 31, 2023
Cash and cash equivalents(*)	~~W~~	2,023,543		1,454,773
Financial instruments(*)		324,263		295,309
Accounts receivable – trade(*)		2,000,382		1,990,849
Contract assets		136,737		129,771
Loans and other receivables(*)		920,977		1,055,102
Derivative financial assets		341,108		148,534
	~~W~~	5,747,010		5,074,338
(*)	Amounts reclassified as assets held for sale as of December 31, 2024 are not included.<br>
---	---

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 by 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.

(i)	Accounts receivable – trade and contract assets

The Group establishes a loss allowance in respect of accounts receivable – trade and contract assets. 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. Details of changes in loss allowance for the year ended December 31, 2024 are included in note 6.

(ii)	Debt investments

The credit risk arises from debt investments included in ~~W~~324,263 million of financial instruments, and ~~W~~920,977 million of loans and other receivables. To limit the exposure to this risk, the Group transacts only with financial institutions with credit ratings that are considered to be low credit risk.

Most of the Group’s debt investments are considered to have a low risk of default and the borrower has a strong capacity to meet its contractual cash flow obligations in the near term. Thus, the Group measured the loss allowance for the debt investments at an amount equal to 12-month expected credit losses.

Meanwhile, the Group monitors changes in credit risk at each reporting date. The Group recognized the loss allowance at an amount equal to lifetime expected credit losses when the credit risk on the debt investments is assumed to have increased significantly if it is more than 30 days past due.

104

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

35.	Financial Risk Management, Continued
(1)	Financial risk management, Continued
---	---
2)	Credit risk, Continued
---	---
(ii)	Debt investments, Continued
---	---

The Group’s maximum exposure to credit risk is equal to each financial asset’s carrying amount. The gross carrying amounts of each financial asset except for the accounts receivable – trade and derivative financial assets as of December 31, 2024 are as follows.

(In millions of won)
	Financial assetsat FVTPL			Financial assets at amortized cost
			12-month ECL				Lifetime ECL –not credit impaired			Lifetime ECL –credit impaired
Gross amount	~~W~~	228,762			1,012,300			9,291			62,472
Loss allowance		—			(3,343	)		(4,004	)		(60,238	)
Carrying amount	~~W~~	228,762			1,008,957			5,287			2,234

Changes in the loss allowance for the debt investments for the year ended December 31, 2024 are as follows:

(In millions of won)
	12-month ECL			Lifetime ECL –not credit impaired			Lifetime ECL –credit impaired			Total
December 31, 2023	~~W~~	3,314			3,095			69,255			75,664
Remeasurement of loss allowance, net		799			3,947			92			4,838
Transfer to lifetime ECL – not credit impaired		(701	)		701			—			—
Transfer to lifetime ECL – credit impaired		—			(3,739	)		3,739			—
Amounts written off		(6	)		—			(11,439	)		(11,445	)
Recovery of amounts written off		—			—			1,461			1,461
Reclassified as assets held for sale		(63	)		—			(2,870	)		(2,933	)
December 31, 2024	~~W~~	3,343			4,004			60,238			67,585
(iii)	Cash and cash equivalents
---	---

The Group deposits ~~W~~2,023,543 million of cash and cash equivalents as of December 31, 2024 (~~W~~1,454,773 million as of December 31, 2023) at banks and financial institutions with credit ratings above the certain level. Impairment on cash and cash equivalents has been measured on a 12-month expected loss basis and reflects the short maturities of the exposures. The Group considered that its cash and cash equivalents have low credit risk based on the credit ratings of the counterparties assigned by external credit rating agencies.

105

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

35.	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 December 31, 2024 are as follows:

(In millions of won)
	Carryingamount		Contractualcash flows		Less than 1year		1 - 5 years		More than 5years
Accounts payable - trade	~~W~~	126,508		126,508		126,508		—		—
Borrowings(*1)		615,600		635,141		425,815		209,326		—
Debentures(*1)		8,511,280		9,633,481		2,419,328		5,005,966		2,208,187
Lease liabilities		1,637,951		1,905,971		378,533		1,070,473		456,965
Accounts payable – other and others(*1,2)		5,018,850		5,074,355		4,496,367		572,831		5,157
	~~W~~	15,910,189		17,375,456		7,846,551		6,858,596		2,670,309
(*1)	The contractual cash flow is amount that includes interest payables.
---	---
(*2)	The Group’s accounts payable – other and others includes amounts for payments made using electronic<br>payments through the supplier finance arrangements. The Group pays the amount within the normal operating cycle, and no collateral is incurred in connection with the agreement and there is no substantial change in the payment conditions, therefore,<br>the amount is classified as accounts payable – other and presented as operating cash flows in the statements of cash flows. Accounts payable – other and others relating to the supplier finance arrangements amounts to<br>~~W~~298,448 million as of December 31, 2024.
---	---

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

As of December 31, 2024, 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 1year		1 - 5 years
Assets	~~W~~	270,797			282,892			105,005		177,887
Liabilities		(748	)		(750	)		—		(750	)

106

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

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

The Group manages its capital to ensure that it will be able to continue as a going concern 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, 2023.

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 December 31, 2024 and 2023 are as follows:

(In millions of won)
	December 31, 2024			December 31, 2023
Total liabilities	~~W~~	18,687,621			17,890,828
Total equity		11,827,634			12,228,399
Debt-equity ratios		158.00	%		146.31	%
(3)	Fair value
---	---
1)	Fair value and carrying amount of financial assets and liabilities including fair value hierarchy as of<br>December 31, 2024 are as follows:
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---	---	---
	December 31, 2024
	Carryingamount		Level 1		Level 2		Level 3		Total
Financial assets that are measured at fair value:
FVTPL	~~W~~	748,582		—		539,481		209,101		748,582
Derivative hedging instruments		270,797		—		270,797		—		270,797
FVOCI		1,739,133		1,088,578		171,967		478,588		1,739,133
	~~W~~	2,758,512		1,088,578		982,245		687,689		2,758,512
Financial liabilities that are measured at fair value:
FVTPL		2,689		—		—		2,689		2,689
Derivative hedging instruments		748		—		748		—		748
	~~W~~	3,437		—		748		2,689		3,437
Financial liabilities that are not measured at fair value:
Borrowings	~~W~~	615,600		—		619,325		—		619,325
Debentures		8,511,280		—		8,582,255		—		8,582,255
Long-term payables – other		907,720		—		930,604		—		930,604
	~~W~~	10,034,600		—		10,132,184		—		10,132,184

107

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

35.	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<br>December 31, 2023 are as follows:
---	---
(In millions of won)	December 31, 2023
---	---	---	---	---	---	---	---	---	---	---
	Carryingamount		Level 1		Level 2		Level 3		Total
Financial assets that are measured at fair value:
FVTPL	~~W~~	962,623		—		649,649		312,974		962,623
Derivative hedging instruments		116,210		—		116,210		—		116,210
FVOCI		1,398,734		1,135,832		—		262,902		1,398,734
	~~W~~	2,477,567		1,135,832		765,859		575,876		2,477,567
Financial liabilities that are measured at fair value:
FVTPL		295,876		—		—		295,876		295,876
Derivative hedging instruments		9,212		—		9,212		—		9,212
	~~W~~	305,088		—		9,212		295,876		305,088
Financial liabilities that are not measured at fair value:
Borrowings	~~W~~	718,078		—		695,320		—		695,320
Debentures		8,325,643		—		8,052,193		—		8,052,193
Long-term payables – other		1,260,453		—		1,294,977		—		1,294,977
	~~W~~	10,304,174		—		10,042,490		—		10,042,490

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 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 in such valuation methods include swap rate, interest rate, and risk premium and the volatility of stock price, 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 December 31, 2024 are as follows:

	Interest rate
Derivative instruments	2.17% ~ 6.80%
Borrowings and debentures	3.16% ~ 18.12%
Long-term payables – other	3.17% ~ 3.23%

108

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

35.	Financial Risk Management, Continued
(3)	Fair value, Continued
---	---
3)	There have been no transfers between Level 1 and Level 2 for the year ended December 31, 2024. The changes<br>of financial instruments classified as Level 3 for the year ended December 31, 2024 are as follows:
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	Balance as ofJanuary 1,2024			Gain		OCI		Acquisition		Disposal			Transfer			Balance as ofDecember 31,<br>2024
Financial assets																		****
FVTPL	~~W~~	312,974			48,758		6,900		4,199		(6,194	)		(157,536	)		209,101
FVOCI		262,902			—		57,334		46,222		(3,812	)		115,942			478,588
	~~W~~	575,876			48,758		64,234		50,421		(10,006	)		(41,594	)		687,689
Financial liabilities																		****
FVTPL	~~W~~	(295,876	)		118,372		—		—		—			174,815			(2,689	)
(4)	Enforceable master netting agreement or similar agreement
---	---

Carrying amounts of financial instruments recognized to which offset agreements are applicable as of December 31, 2024 and 2023 are as follows:

(In millions of won)
	December 31, 2024
	Gross financialinstrumentsrecognized		Amountoffset			Net financial<br>instrumentspresented on theconsolidated statements offinancial position
Financial assets:
Accounts receivable – trade and others	~~W~~	186,284		(174,372	)		11,912
Financial liabilities:
Accounts payable – other and others	~~W~~	180,323		(174,372	)		5,951
(In millions of won)
---	---	---	---	---	---	---	---
	December 31, 2023
	Gross financialinstrumentsrecognized		Amountoffset			Net financial instrumentspresented on theconsolidated statements offinancial position
Financial assets:
Accounts receivable – trade and others	~~W~~	194,374		(183,520	)		10,854
Financial liabilities:
Accounts payable – other and others	~~W~~	190,630		(183,520	)		7,110

109

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

36.	Transactions with Related Parties
(1)	List of related parties
---	---
Relationship	Company
---	---
Ultimate controlling entity	SK Inc.
Joint venture	UTC Kakao-SK Telecom ESG Fund
Associates	SK China Company Ltd. and 44 others
Others	The Ultimate controlling entity’s subsidiaries and associates and others

As of December 31, 2024, the Group belongs to SK Group, a conglomerate as defined in the MonopolyRegulation and Fair Trade Act of the Republic of Korea. All of the other entities included in SK Group are considered related parties of the Group.

(2)	Compensation for the key management

The Parent Company considers registered 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 years ended December 31, 2024 and 2023 are as follows:

(In millions of won)
	2024		2023
Salaries	~~W~~	5,673		4,139
Defined benefits plan expenses		1,362		1,005
Share option		977		2,542
	~~W~~	8,012		7,686

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

110

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

36.	Transactions with Related Parties, Continued
(3)	Transactions with related parties for the years ended December 31, 2024 and 2023 are as follows:<br>
---	---
(In millions of won)
---	---	---	---	---	---	---	---
		2024
Scope	Company	Operating revenueand others		*Operatingexpense andothers (1)**		Acquisition ofproperty andequipmentand others
Ultimate Controlling Entity	SK Inc.(*2)	~~W~~	19,501		660,578		125,691
Associates	F&U Credit information Co., Ltd.		3,227		48,035		266
	SK AMERICAS Inc.(Formerly, SK USA Inc.)		649		5,462		—
	Daehan Kanggun BcN Co., Ltd.		9,551		—		—
	Others(*3)		10,154		13,051		296
			23,581		66,548		562
Others	SK Innovation Co., Ltd.		14,630		16,757		—
	SK Energy Co., Ltd.		3,822		264		—
	SK Geo Centric Co., Ltd.		847		187		—
	SK Networks Co., Ltd.(*4)		5,096		1,011,217		—
	SK Networks Service Co., Ltd.		5,300		67,713		4,352
	SK Ecoplant Co., Ltd.		2,993		—		—
	SK hynix Inc.		50,127		256		—
	SK Shieldus Co., Ltd.		61,040		147,587		18,863
	Content Wavve Corp.		13,432		83,164		—
	Eleven Street Co., Ltd.		69,448		31,277		—
	SK Planet Co., Ltd.		15,580		84,536		14,656
	SK RENT A CAR Co., Ltd.(*5)		8,336		14,462		169
	SK Magic Co., Ltd.		1,522		796		—
	Tmap Mobility Co., Ltd.		24,291		6,452		—
	Onestore Co., Ltd.		14,588		1,604		—
	Dreamus Company		5,526		66,242		265
	UNA Engineering Inc.		88		55,902		50,497
	Happy Narae Co., Ltd.		1,317		15,760		108,074
	Others		47,355		75,040		25,236
			345,338		1,679,216		222,112
		~~W~~	388,420		2,406,342		348,365
(*1)	Operating expenses and others include lease payments by the Group.
---	---
(*2)	Operating expenses and others include ~~W~~232,466 million of dividends paid by the Parent<br>Company.
---	---
(*3)	Operating revenue and others include ~~W~~7,718 million of dividends received which was deducted<br>from the investment in associates.
---	---
(*4)	Operating expenses and others include costs for handset purchases amounting to ~~W~~964,692<br>million.
---	---
(*5)	SK RENT A CAR Co., Ltd. was excluded from the related parties for the year ended December 31, 2024, and<br>the transactions above occurred before the related party relationship terminated.
---	---

111

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

36.	Transactions with Related Parties, Continued
(3)	Transactions with related parties for the years ended December 31, 2024 and 2023 are as follows,<br>Continued:
---	---
(In millions of won)
---	---	---	---	---	---	---	---
		2023
Scope	Company	Operating revenueand others		*Operatingexpense andothers (1)**		Acquisition ofproperty andequipmentand others
Ultimate Controlling Entity	SK Inc.(*2)	~~W~~	21,438		633,265		120,926
Associates	F&U Credit information Co., Ltd.		3,876		49,398		552
	SK AMERICAS Inc.(Formerly, SK USA Inc.)		—		5,384		—
	Daehan Kanggun BcN Co., Ltd.		12,972		—		—
	Others(*3)		8,806		15,962		865
			25,654		70,744		1,417
Others	SK Innovation Co., Ltd.		33,571		18,977		—
	SK Energy Co., Ltd.		4,113		540		—
	SK Geo Centric Co., Ltd.		835		2		—
	SK Networks Co., Ltd.(*4)		5,876		970,662		1
	SK Networks Service Co., Ltd.		5,471		72,274		8,393
	SK Ecoplant Co., Ltd.		2,547		—		—
	SK hynix Inc.		58,725		178		—
	SK Shieldus Co., Ltd.		59,974		147,333		26,021
	Content Wavve Corp.		14,524		87,263		176
	Eleven Street Co., Ltd.		72,683		34,053		—
	SK Planet Co., Ltd.		18,308		88,250		16,338
	SK RENT A CAR Co., Ltd.		14,023		20,231		—
	SK Magic Co., Ltd.		1,632		1,142		—
	Tmap Mobility Co., Ltd.		24,862		10,003		—
	Onestore Co., Ltd.		16,265		166		—
	Dreamus Company		6,202		77,452		284
	UNA Engineering Inc.		172		50,263		52,733
	Happy Narae Co., Ltd.		1,472		35,461		92,375
	Others		52,039		21,884		13,292
			393,294		1,636,134		209,613
		~~W~~	440,386		2,340,143		331,956
(*1)	Operating expenses and others include lease payments by the Group.
---	---
(*2)	Operating expenses and others include ~~W~~218,019 million of dividends paid by the Parent<br>Company.
---	---
(*3)	Operating revenue and others include ~~W~~8,806 million of dividends received which was deducted<br>from the investment in associates.
---	---
(*4)	Operating expenses and others include costs for handset purchases amounting to ~~W~~915,339<br>million.
---	---

112

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

36.	Transactions with Related Parties, Continued
(4)	Account balances with related parties as of December 31, 2024 and 2023 are as follows:<br>
---	---
(In millions of won)
---	---	---	---	---	---	---	---
		December 31, 2024
		Receivables				Payables
Scope	Company	Loans		Accounts receivable –trade, etc.		Accounts payable– other, etc.
Ultimate Controlling Entity	SK Inc.	~~W~~	—		1,668		76,471
Associates	F&U Credit information Co., Ltd.		—		54		4,610
	Daehan Kanggun BcN Co., Ltd.(*)		22,147		—		—
	Others		—		5,158		7,001
			22,147		5,212		11,611
Others	SK Innovation Co., Ltd.		—		6,531		28,326
	SK Networks Co., Ltd.		—		372		140,120
	Mintit Co., Ltd.		—		4		—
	SK hynix Inc.		—		12,680		206
	Happy Narae Co., Ltd.		—		52		17,833
	SK Shieldus Co., Ltd.		—		12,582		20,515
	Content Wavve Corp.		—		1,564		7
	Incross Co., Ltd.		—		1,946		20,353
	Eleven Street Co., Ltd.		—		16,637		4,750
	SK Planet Co., Ltd.		—		980		15,491
	UNA Engineering Inc.		—		—		25,498
	Others		—		12,703		27,981
			—		66,051		301,080
		~~W~~	22,147		72,931		389,162
(*)	As of December 31, 2024, the Parent Company recognized loss allowance for the entire balance of loans to<br>Daehan Kanggun BcN Co., Ltd.
---	---

113

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

36.	Transactions with Related Parties, Continued
(4)	Account balances with related parties as of December 31, 2024 and 2023 are as follows, Continued:<br>
---	---
(In millions of won)
---	---	---	---	---	---	---	---
		December 31, 2023
		Receivables				Payables
Scope	Company	Loans		Accounts receivable– trade, etc.		Accounts payable– other, etc.
Ultimate Controlling Entity	SK Inc.	~~W~~	—		1,535		106,546
Associates	F&U Credit information Co., Ltd.		—		325		4,417
	Daehan Kanggun BcN Co., Ltd.(*1)		22,147		4,701		—
	Others		—		3,910		3,476
			22,147		8,936		7,893
Others	SK Innovation Co., Ltd.		—		8,697		28,646
	SK Networks Co., Ltd.		—		120		156,316
	Mintit Co., Ltd.		—		17,036		—
	SK hynix Inc.		—		8,022		2,251
	Happy Narae Co., Ltd.		—		101		5,686
	SK Shieldus Co., Ltd.		—		12,723		14,784
	Content Wavve Corp.		—		1,476		2
	Incross Co., Ltd.		—		2,239		943
	Eleven Street Co., Ltd.		—		6,138		6,103
	SK Planet Co., Ltd.		—		9,981		18,833
	SK RENT A CAR Co., Ltd.		—		866		33,365
	UNA Engineering Inc.		—		1		10,764
	Others(*2)		—		15,082		30,184
			—		82,482		307,877
		~~W~~	22,147		92,953		422,316
(*1)	As of December 31, 2023, the Parent Company recognized loss allowance for the entire balance of loans to<br>Daehan Kanggun BcN Co., Ltd.
---	---
(*2)	During the year ended December 31, 2022, SK Telecom Innovation Fund, L.P., a subsidiary of the Parent<br>Company, entered into a convertible loan agreement for USD 13,000,000 with id Quantique SA, classified as an other related party. SK Telecom Innovation Fund, L.P. acquired shares of id Quantique SA amounting to USD 26,731,250, including common<br>shares converted from the entire balance of loan for the year ended December 31, 2023.
---	---
(5)	The Group has granted SK REIT Co., Ltd. the right of first offer regarding the disposal of specified real<br>estates owned by the Group. Whereby, the negotiation period is within three to five years from June 30, 2021 when the agreement was signed, and the negotiation period of real estates on maturity was extended for three years as of June 30,<br>2024. In addition, 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. purchases the real estate from the Group.
---	---
(6)	Details of additional investments and disposal of subsidiaries, associates and joint ventures for the year<br>ended December 31, 2024 are as presented in Note 11.
---	---

114

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

37.	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~~1,098 million as of December 31, 2024.

(2)	Legal claims and litigations

As of December 31, 2024, the Group 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 Group has a present obligation, nor is it expected any of these claims or litigations will have a material 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.

The accounts receivable from sale of handsets amounting to ~~W~~241,962 million and ~~W~~291,747 million as of December 31, 2024 and 2023, 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)	Obligation relating to spin-off

The Parent 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 Parent Company has obligation to jointly and severally reimburse the Parent 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.

115

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

37.	Commitments and Contingencies, Continued
(5)	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, and the Parent Company completed the acquisition of the shares for the year ended December 31, 2022. As a part of the aforementioned 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, and completed the acquisition of the shares for the year ended December 31, 2022. The Parent Company, HFG, and HanaCard Co., Ltd. may not dispose of shares they have acquired under the aforementioned transaction until March 31, 2025.

(6)

The acquisition cost of property and equipment and intangible assets to be incurred in subsequent periods under arrangements is ~~W~~28,346 million as of December 31, 2024.

(7)

According to the covenant for bond issuance and borrowings, the Group is required to maintain specific financial ratios, such as the debt ratio, at certain levels. The funds obtained must be used for specified purposes only, and regular reporting to lenders is mandated. Additionally, the contracts include clauses that restrict both provision of additional collateral of assets held by the Group and disposal of certain assets.

---

116

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

38.	Statements of Cash Flows
(1)	Adjustments for income and expenses from operating activities for the years ended December 31, 2024 and<br>2023 are as follows:
---	---
(In millions of won)
---	---	---	---	---	---	---
	2024			2023
Interest income	~~W~~	(87,245	)		(70,055	)
Dividends		(35,818	)		(43,014	)
Gain on foreign currency translations		(9,344	)		(1,199	)
Gain relating to investments in subsidiaries, associates and<br><br><br>joint ventures, net		(321,787	)		(10,928	)
Gain on disposal of property and equipment and intangible assets		(37,316	)		(21,898	)
Gain relating to financial instruments at FVTPL		(190,368	)		(115,043	)
Interest expense		403,129			389,813
Loss on foreign currency translations		3,575			1,227
Loss on sale of accounts receivable – other		35,317			65,027
Income tax expense		374,670			342,242
Expense related to defined benefit plan		130,581			124,439
Share option		6,696			18,889
Bonus paid by treasury shares		24,988			20,420
Depreciation and amortization		3,699,890			3,750,796
Bad debt for accounts receivables – trade		49,865			37,906
Impairment loss on property and equipment and intangible assets		94,736			10,369
Loss on disposal of property and equipment and intangible assets		17,427			9,369
Bad debt for accounts receivable – other		4,838			5,256
Loss relating to financial instruments at FVTPL		133,006			49,641
Other income (expenses)		16,373			(16,919	)
	~~W~~	4,313,213			4,546,338

117

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

38.	Statements of Cash Flows, Continued
(2)	Changes in assets and liabilities from operating activities for the years ended December 31, 2024 and 2023<br>are as follows:
---	---
(In millions of won)
---	---	---	---	---	---	---
	2024			2023
Accounts receivable – trade	~~W~~	(69,043	)		(46,531	)
Accounts receivable – other		(51,028	)		79,223
Advanced payments		4,503			3,986
Prepaid expenses		(11,233	)		(2,262	)
Inventories		(35,661	)		(17,549	)
Long-term accounts receivable – other		135,823			66,036
Contract assets		(6,966	)		3,877
Guarantee deposits		15,552			(2,117	)
Accounts payable – trade		(10,039	)		50,442
Accounts payable – other		(161,778	)		(188,318	)
Withholdings		138,672			(3,714	)
Contract liabilities		17,213			(19,620	)
Deposits received		(1,835	)		(1,744	)
Accrued expenses		81,025			(73,734	)
Provisions		(160	)		(566	)
Long-term provisions		(357	)		(1,061	)
Plan assets		6,110			(17,772	)
Retirement benefits payment		(157,801	)		(99,396	)
Others		(1,810	)		(3,343	)
	~~W~~	(108,813	)		(274,163	)
(3)	Material non-cash transactions for the years ended December 31, 2024 and 2023 are as follows:<br>
---	---
(In millions of won)
---	---	---	---	---	---	---
	2024			2023
Decrease in accounts payable – other relating to the acquisition of property and equipment<br>and intangible assets	~~W~~	(130,413	)		(305,823	)
Increase of right-of-use assets		523,494			345,761
Transfer from property and equipment to investment property		(5,482	)		13,900
Increase in accounts payable – other relating to the acquisition of shares		1,195,642			—

118

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

38.	Statements of Cash Flows, Continued
(4)	Reconciliation of liabilities arising from financing activities for the years ended December 31, 2024 and<br>2023 are as follows:
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	2024
							Non-cash transactions
	January 1,2024			Cash flows			*Exchange ratechanges()**		Fair valuechanges			Otherchanges		December 31,2024
Total liabilities from financing activities:
Short-term borrowings	~~W~~	—			100,000			—		—			—		100,000
Long-term borrowings		718,078			(202,500	)		—		—			22		515,600
Debentures		8,325,643			725			179,773		—			5,139		8,511,280
Lease liabilities		1,611,433			(381,347	)		—		—			407,865		1,637,951
Long-term payables – other		1,260,453			(369,150	)		—		—			16,417		907,720
Derivative financial<br><br><br>liabilities		(9,212	)		—			—		8,464			—		(748	)
Derivative financial<br><br><br>assets		(116,210	)		—			—		(154,587	)		—		(270,797	)
	~~W~~	11,790,185			(852,272	)		179,773		(146,123	)		429,443		11,401,006
Other cash flows from financing activities:
Payments of cash dividends				~~W~~	(804,317	)
Payments of interest on hybrid bonds					(19,800	)
Acquisition of treasury shares					(15,788	)
Cash outflow from transactions with the non-controlling shareholders					(133,393	)
Cash inflow from transactions with the non-controlling shareholders					15,717
					(957,581	)
				~~W~~	(1,809,853	)
(*)	The effect of changes in foreign exchange rates for financial liabilities at amortized cost.<br>
---	---

119

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

38.	Statements of Cash Flows, Continued
(4)	Reconciliation of liabilities arising from financing activities for the years ended December 31, 2024 and<br>2023 are as follows, Continued:
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	2023
							Non-cash transactions
	January 1,2023			Cash flows			*Exchange ratechanges()**		Fair valuechanges			Otherchanges		December 31,2023
Total liabilities from financing activities:
Short-term borrowings	~~W~~	142,998			(142,998	)		—		—			—		—
Long-term borrowings		793,113			(75,050	)		—		—			15		718,078
Debentures		8,366,693			(84,082	)		36,701		—			6,331		8,325,643
Lease liabilities		1,782,057			(402,465	)		—		—			231,841		1,611,433
Long-term payables – other		1,638,341			(400,245	)		—		—			22,357		1,260,453
Derivative financial<br><br><br>liabilities		—			—			—		(9,212	)		—		(9,212	)
Derivative financial<br><br><br>assets		(267,151	)		183,090			—		(32,149	)		—		(116,210	)
	~~W~~	12,456,051			(921,750	)		36,701		(41,361	)		260,544		11,790,185
Other cash flows from financing activities:
Payments of cash dividends				~~W~~	(773,806	)
Payments of interest on hybrid bonds					(17,283	)
Acquisition of treasury shares					(285,487	)
Proceeds of hybrid bonds					398,509
Redemption<br><br><br>of hybrid bonds					(400,000	)
Cash inflow from transactions with the non-controlling shareholders					160
Cash outflow from transactions with the non-controlling shareholders					(21,333	)
					(1,099,240	)
				~~W~~	(2,020,990	)
(*)	The effect of changes in foreign exchange rates for financial liabilities at amortized cost.<br>
---	---

120

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

39.	Emissions Liabilities
(1)	The quantity of emissions rights allocated free of charge for each implementation year as of December 31,<br>2024 are as follows:
---	---
(In tCO2-eQ)
---	---	---	---	---	---	---	---	---	---	---	---	---
	Quantities<br>allocated<br>in 2021		Quantities<br>allocated<br>in 2022		Quantitiesallocated<br>in 2023		Quantitiesallocated<br>in 2024		Quantitiesallocated<br>in 2025		Total
Emissions rights allocated free of charge(*)		1,385,433		1,602,751		1,736,918		1,444,523		1,506,276		7,675,901
(*)	The changes in quantity due to additional allocation, cancellation of allocation and others are considered.<br>
---	---
(2)	Changes in emissions rights quantities the Group held are as follows:
---	---
(In tCO2-eQ)
---	---	---	---	---	---	---	---	---	---	---	---	---
	Quantitiesallocated in 2022			Quantitiesallocated in 2023			Quantitiesallocated in 2024			Total
Beginning		—			306,575			414,356			720,931
Allocation at no cost		1,602,751			1,736,918			1,444,523			4,784,192
Purchase		213,609			(56,266	)		27,288			184,631
Surrender or shall be surrendered		(1,515,595	)		(1,572,871	)		(1,687,118	)		(4,775,584	)
Borrowed		5,810			—			—			5,810
Ending		306,575			414,356			199,049			919,980
(3)	As of December 31, 2024, the estimated annual greenhouse gas emissions quantities of the Group are<br>1,687,118 tCO2-eQ.
---	---

121

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

40.	Assets and Liabilities Held for Sale
Assets	and liabilities held for sale as of December 31, 2024 and 2023 are as follows:
---	---
(In millions of won)
---	---	---	---	---	---
		December 31,2024		December 31,2023
Assets:
Disposal Groups(*)	Cash and cash equivalents	~~W~~	22,986		—
	Accounts receivable – trade and other, net		71,401		—
	Prepaid expenses		1,127		—
	Inventories, net		3,740		—
	Property and equipment, net		17,412		—
	Investment property, net		1,719		—
	Intangible assets, net		5,655		—
	Goodwill		2,516		—
	Financial instrument		10		—
	Defined benefit assets		7,601		—
	Advanced payments and others		17,559		—
Investments in associates	F&U Credit information Co., Ltd.		11,138		—
	Daekyo Wipoongdangdang<br> <br>Contents Korea<br>Fund		746		746
Long-term Investment securities	Digital Content Korea Fund		3,395		3,395
	Central Fusion Content Fund		883		884
	P&I Cultural Innovation Fund		818		1,892
Inventories	—		—		505
Prepaid Expenses	—		—		1,489
Property and Equipment	—		6,133		1,604
		~~W~~	174,839		10,515
Liabilities:
Disposal Groups(*)	Accounts payable – other		82,206		—
	Withholdings		16,161		—
	Lease liabilities		2,745		—
	Contract liabilities		1,261		—
	Provisions		1,924		—
	Other current liabilities		1,904		—
	Deferred tax liabilities		151		—
Other liabilities	-		—		39
		~~W~~	106,352		39
(*)	The Group decided to dispose of the shares of NATE Communications Corporation (formerly, SK Communications Co.,<br>Ltd.) and SK m&service Co., Ltd., the consolidated subsidiaries, and reclassified assets and liabilities of NATE Communications Corporation (formerly, SK Communications Co., Ltd.) and SK m&service Co., Ltd. as assets and liabilities held for<br>sale.
---	---

122

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

41.	Subsequent Events

The Group entered into a stock sale agreement in which the Group disposes of the entire shares of NATE Communications Corporation (formerly, SK Communications Co., Ltd.) and 70.0% shares of SK m&service Co., Ltd. and the entire shares of F&U Credit information Co., Ltd. on December 18, 2024, and completed the disposal of the shares of NATE Communications Corporation (formerly, SK Communications Co., Ltd.) and SK m&service Co., Ltd. on January 23, 2025 and February 25, 2025, respectively.

123

Audit opinion on internal control over financial reporting

The accompanying independent auditor’s report on internal control over financial reporting is attached as a result of auditing the internal control over financial reporting of SK Telecom Co., Ltd. and its subsidiaries (the “Group”) and the consolidated financial statements of the Group for the year ended December 31, 2024 in accordance with the Article 8 of the Act on ExternalAudit of Stock Companies.

Attachments:

1.	Independent auditor’s report on Internal Control over Financial Reporting
2.	Management’s Annual Report on Internal Control over Financial Reporting
---	---

Ernst & Young Han Young<br> <br>Taeyoung Building,<br>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

Independent auditor’s report on Internal Control over FinancialReporting

(Based on a report originally issued in Korean)

SK Telecom Co., Ltd.:

The Shareholders and Board of Directors

Opinion on Internal Control over Financial Reporting

We have audited the internal control over financial reporting (“ICFR”) of SK Telecom Co., Ltd. and its subsidiaries (the “Group”) based on the Conceptual Framework for Designing and Operating ICFR (“ICFR Design and Operation Framework”) established by the Operating Committee of ICFR in Korea (the “ICFR Committee”) as of December 31, 2024.

In our opinion, the Group’s ICFR has been effectively designed and operated, in all material respects, as of December 31, 2024, in accordance with the ICFR Design and Operation Framework.

We also have audited, in accordance with Korean Standards on Auditing (“KSA”), the consolidated statement of financial position as of December 31, 2024, the consolidated statements of income, comprehensive income, changes in equity, and cash flows for the year then ended, and notes to the consolidated financial statements, including a summary of material accounting policies, of the Group, and our report dated March 10, 2025 expressed an unqualified opinion thereon.

Basis forOpinion on ICFR

We conducted our audit in accordance with KSA. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of ICFR section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of ICFR in the Republic of Korea, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Responsibilities of Management and Those Charged with Governance for ICFR

Management is responsible for designing, operating, and maintaining effective ICFR, and for its assessing the effectiveness of ICFR, included in the accompanying Management’s Annual Report on Internal Control over Financial Reporting.

Those charged with governance are responsible for overseeing the Group’s ICFR.

Auditor’s Responsibilities for the Audit of ICFR

Our responsibility is to express an opinion of the Group’s ICFR based on our audit. We conducted our audit in accordance with KSA. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective ICFR was maintained in all material respects.

An audit of the ICFR involves performing procedures to obtain audit evidence as to whether a material weakness exists. The procedures selected depend on the auditor’s judgment, including the assessment of the risks that a material weakness exists. An audit also includes testing and evaluating the design and operation of ICFR based on obtaining an understanding of ICFR and the assessed risk.

LOGO

ICFR definition and Inherent Limitations

A company’s ICFR is implemented by those charged with governance, management, and other employees and is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with International Financial Reporting Standards as adopted by the Republic of Korea (“KIFRS”). A company’s ICFR includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of consolidated financial statements in accordance with KIFRS, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, ICFR may not prevent or detect misstatements of the financial statements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that ICFR may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

The engagement partner on the audit resulting in this independent auditor’s report is Yoo, Jung Ho.

March 10, 2025

This report is effective as of March 10,<br>2025, the independent auditor’s report date. Accordingly, certain material subsequent events or circumstances may have occurred during the period from the auditor’s report date to the time this report is used. Such events and circumstances<br>could significantly affect the Group’s ICFR and may result in modifications to this report.

Management’s Annual Report on Internal Control overFinancial Reporting

English translation of a Report Originally Issued in Korean ****

To Shareholders, the Board of Directors and Audit Committee of

SK Telecom Co., Ltd.

We, as the Chief Executive Officer (“CEO”) and Internal Control over Financial Reporting (“ICFR”) Officer of SK Telecom Co., Ltd. and its subsidiaries (the “Group”), assessed the status of the design and operation of the Group’s ICFR for the year ending December 31, 2024.

The Group’s management including the CEO and ICFR Officer is responsible for designing and operating ICFR. We, as the CEO and ICFR Officer (collectively, “We”, “Our” or “Us”), evaluated whether the ICFR has been appropriately designed and is effectively operating to prevent and detect error or fraud which may cause material misstatement of the financial statements to ensure preparation and disclosure of reliable financial information.

We used the ‘Conceptual Framework for Designing and Operating Internal Control over Financial Reporting’ established by the Operating Committee of Internal Control over Financial Reporting in Korea (the “ICFR Committee”)’ as the criteria for design and operation of the Group’s ICFR. We also conducted an evaluation of ICFR based on the ‘Management Guideline for Evaluating and Reporting Effectiveness of Internal Control over Financial Reporting’ established by the ICFR Committee.

Based on our assessment of ICFR operation, we concluded that the Group’s ICFR has been appropriately designed and is operating effectively in all material respects as of December 31, 2024, in accordance with the ‘Conceptual Framework for Designing and Operating Internal Control over Financial Reporting’.

We certify that this report does not contain any untrue statement of a fact, or omit to state a fact necessary to be presented herein. We also certify that this report does not contain or present any statements which might cause material misunderstandings of the readers, and we have reviewed and verified this report with sufficient care.

February 25, 2025

/s/ Kim, Yang Seob
Internal Control over Financial Reporting Officer
/s/ Ryu, Young Sang
Chief Executive Officer

SK TELECOM CO., LTD.

Separate Financial Statements

For each of the years ended December 31, 2024 and 2023

(With the Independent Auditor’s Report Thereon)

Contents

	Page
Independent Auditor’s Report
Separate Financial Statements
Separate Statements of Financial Position		1
Separate Statements of Income		3
Separate Statements of Comprehensive Income		4
Separate Statements of Changes in Equity		5
Separate Statements of Cash Flows		6
Notes to the Separate Financial Statements		8
Report on audit of Internal Control over FinancialReporting		111
Management’s Annual Report on Internal Control over Financial Reporting		114

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

Independent Auditor’s Report

(English Translation of a Report Originally Issued in Korean)

The Shareholders and Board of Directors

SK TelecomCo., Ltd.

Opinion

We have audited the accompanying separate financial statements of SK Telecom Co., Ltd. (the “Company”) which comprise the separate statements of financial position as of December 31, 2024 and 2023, and the separate statements of income, comprehensive income, changes in equity and cash flows for each of the two years in the period ended December 31, 2024, and notes to the separate financial statements, including a summary of material accounting policies.

In our opinion, the accompanying separate financial statements present fairly, in all material respects, the separate financial position of the Company as of December 31, 2024 and 2023, and its separate financial performance and its separate cash flows for each for each of the two years in the period ended December 31, 2024 in accordance with International Financial Reporting Standards as adopted by the Republic of Korea (“KIFRS”).

We also have audited the Company’s internal control over financial reporting as of December 31, 2024, based on the criteria established in Conceptual Framework for Designing and Operating Internal Control over Financial Reporting in accordance with the Korean Standards on Auditing (“KSA”) issued by the Operating Committee of internal control over financial reporting, and our report dated March 10, 2025 expressed an unqualified opinion thereon.

Basis forOpinion

We conducted our audits in accordance with KSA. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Separate Financial Statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the separate financial statements in the Republic of Korea, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matter

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the separate financial statements of the current period. These matters were addressed in the context of our audit of the separate financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. For each matter below, our description of how our audit addressed the matter is provided in that context.

Cut-off of revenues from the wireless services

As described in notes 3 (21) and 27 to the separate financial statements, the Company’s revenue from the wireless services is recognized based on data from a complex array of information technology systems which process a significant volume of transactions with its customers. Furthermore, the transactions involve a variety of contractual terms from new subscriptions to deactivations or churn, and changes of rate plans during the period. Therefore, we have identified timing of revenue recognition related to the Company’s wireless services as a key audit matter. Related revenue from the wireless services amounted to ~~W~~10,671,222 million in 2024.

LOGO

The primary procedures we performed to address this key audit matter included:

•	Inspecting major contracts with subscribers to assess whether the Company’s revenue recognition policies<br>based on the terms and conditions as set out in the contracts, are consistent with reference to the requirements of KIFRS 1115;
•	Testing internal controls relating to the timing of revenue recognition for the wireless services; and<br>
---	---
•	Evaluating the appropriateness of the timing of revenue recognition by recalculating the prorated revenue based<br>on the subscribed rate plan and comparing it with the billing information.
---	---

Responsibilities of Management and Those Charged withGovernance for the Separate Financial Statements

Management is responsible for the preparation and fair presentation of the separate financial statements in accordance with KIFRS, and for such internal control as management determines is necessary to enable the preparation of separate financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the separate financial statements, management is responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Company’s financial reporting process.

Auditor’s Responsibilities for the Audit of the Separate Financial Statements

Our objectives are to obtain reasonable assurance about whether the separate financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with KSA will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these separate financial statements.

As part of an audit in accordance with KSA, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

•	Identify and assess the risks of material misstatement of the separate financial statements, whether due to fraud<br>or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is<br>higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
•	Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are<br>appropriate in the circumstances.
---	---
•	Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and<br>related disclosures made by management.
---	---

LOGO

•

Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the separate financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern.

•

Evaluate the overall presentation, structure and content of the separate financial statements, including the disclosures, and whether the separate financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

---

From the matters communicated with those charged with governance, we determine this matter that was of most significant in the audit of the separate financial statements of the current period and is therefore the key audit matter. We describe this matter in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

The engagement partner on the audit resulting in this independent auditor’s report is Yoo, Jung Ho.

March 10, 2025

This report is effective as of March 10, 2025, the independent auditor’s report date. Accordingly, certain material subsequent events or circumstances may have occurred during the period from the date of independent auditor’s report date to the time this report is used. Such events and circumstances could significantly affect the accompanying separate financial statements and may result in modifications to this report.

SK TELECOM CO., LTD.

SEPARATE FINANCIAL STATEMENTS

FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023

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

Ryu, Young-Sang

Chief Executive Officer

SK TELECOM CO., LTD.

SK TELECOM CO., LTD.

Separate Statements of Financial Position

As of December 31, 2024 and 2023

(In millions of won)
	Note		December 31, 2024		December 31, 2023
Assets
Current Assets:
Cash and cash equivalents		34,35	~~W~~	1,165,158		631,066
Short-term financial instruments		4,34,35		79,000		186,364
Accounts receivable – trade, net		5,34,35,36		1,508,893		1,495,617
Short-term loans, net		5,34,35,36		55,577		68,806
Accounts receivable – other, net		5,34,35,36,37		390,243		343,036
Contract assets		7,35		5,275		9,228
Prepaid expenses		6		1,802,742		1,828,646
Guarantee deposits		5,34,35,36		67,521		72,479
Derivative financial assets		19,34,35,38		80,650		—
Inventories, net				38,982		28,096
Non-current assets held for sale		40		11,568		—
Advanced payments and others		5,34,35		36,796		40,506
			****	5,242,405	****	4,703,844
Non-Current Assets:
Long-term financial instruments		4,34,35		354		354
Long-term investment securities		8,34,35		1,418,465		1,426,290
Investments in subsidiaries, associates and joint ventures		9		4,899,558		4,670,568
Property and equipment, net		10,12,36		8,515,225		9,076,459
Investment property, net		11		35,462		46,080
Goodwill		13		1,306,236		1,306,236
Intangible assets, net		14		1,683,018		2,250,829
Long-term loans, net		5,34,35,36		490		119
Long-term accounts receivable – other, net		5,34,35,37		239,008		308,868
Long-term contract assets		7,35		13,301		12,385
Long-term prepaid expenses		6		894,226		898,754
Guarantee deposits, net		5,34,35,36		85,939		91,220
Long-term derivative financial assets		19,34,35,38		148,172		118,533
Defined benefit assets		18		103,518		85,144
Other non-current assets				249		249
			****	19,343,221	****	20,292,088
Total Assets			~~W~~	24,585,626	****	24,995,932

(Continued)

SK TELECOM CO., LTD.

Separate Statements of Financial Position, Continued

As of December 31, 2024 and 2023

(In millions of won)
	Note		December 31, 2024			December 31, 2023
Liabilities and Shareholders’ Equity
Current Liabilities:
Accounts payable – other		34,35,36	~~W~~	1,543,989			1,794,997
Contract liabilities		7		76,682			59,814
Withholdings		34,35		717,547			608,352
Accrued expenses		34,35		996,204			911,460
Income tax payable		31		172,008			133,543
Provisions		17,39		40,710			31,313
Current portion of long-term debt, net		15,34,35,38		1,930,070			1,249,516
Lease liabilities		34,35,36,38		308,141			341,075
Current portion of long-term payables – other		16,34,35,38		367,765			367,770
Derivative financial liabilities		19,34,35,38		78,467			—
Other current liabilities		34,35		9,303			7,630
			****	6,240,886	****	****	5,505,470	****
Non-Current Liabilities:
Debentures, excluding current portion, net		15,34,35,38		4,955,124			5,807,423
Long-term borrowings, excluding current portion, net		15,34,35,38		200,000			250,000
Long-term payables – other		16,34,35,38		539,955			892,683
Long-term contract liabilities		7		1,528			4,398
Long-term derivative financial liabilities		19,34,35,38		3,437			295,876
Long-term lease liabilities		34,35,36,38		850,311			885,470
Long-term provisions		17		60,395			69,791
Deferred tax liabilities		31		717,278			801,995
Other non-current liabilities		34,35		55,858			46,733
			****	7,383,886	****	****	9,054,369	****
Total Liabilities			****	13,624,772	****	****	14,559,839	****
Shareholders’ Equity:
Share capital		1,20		30,493			30,493
Capital surplus and others		20,21,22,23		(4,551,820	)		(4,766,147	)
Retained earnings		24,25		15,273,451			15,032,473
Reserves		26		208,730			139,274
Total Shareholder’s Equity			****	10,960,854	****	****	10,436,093	****
Total Liabilities and Shareholder’s Equity			~~W~~	24,585,626	****	****	24,995,932	****

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

SK TELECOM CO., LTD.

Separate Statements of Income

As of December 31, 2024 and 2023

(In millions of won, except for earnings per share)
	Note		2024			2023
Operating revenue:		27,36
Revenue			~~W~~	12,774,060			12,589,220
Operating expenses:		36
Labor				1,139,968			943,924
Commissions		6		4,773,925			4,831,879
Depreciation and amortization				2,645,850			2,698,436
Network interconnection				463,783			490,114
Leased lines				193,896			189,059
Advertising				136,723			174,403
Rent				122,499			127,182
Cost of goods sold				600,190			548,155
Others		28		1,174,051			1,130,198
				11,250,885			11,133,350
Operating profit			****	1,523,175	****	****	1,455,870	****
Finance income		30		513,884			342,646
Finance costs		30		(485,535	)		(441,390	)
Other non-operating income		29		51,855			40,844
Other non-operating expenses		29		(141,478	)		(24,019	)
Gain (loss) relating to investments in subsidiaries, associates and joint ventures, net		9		15,183			(19,012	)
Profit before income tax			****	1,477,084	****	****	1,354,939	****
Income tax expense		31		196,600			295,189
Profit for the year			~~W~~	1,280,484	****	****	1,059,750	****
Earnings per share:	****	32
Basic earnings per share (in won)			~~W~~	5,923			4,798
Diluted earnings per share (in won)				5,907			4,794

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

SK TELECOM CO., LTD.

Separate Statements of Comprehensive Income

For the years ended December 31, 2024 and 2023

(In millions of won)
	Note		2024			2023
Profit for the year			~~W~~	1,280,484	****	****	1,059,750	****
Other comprehensive income (loss):
Items that will not be reclassified subsequently to profit or loss, net of taxes:
Remeasurement of defined benefit assets		18		(5,771	)		43,656
Valuation gain (loss) on financial assets at fair value through other comprehensive<br>income		26,30		13,659			(39,221	)
Items that are or may be reclassified subsequently to profit or loss, net oftaxes:
Net change in unrealized fair value of derivatives		19,26,30		(4,721	)		(11,488	)
Other comprehensive income (loss) for the year, net of taxes			****	3,167	****	****	(7,053	)
Total comprehensive income			~~W~~	1,283,651	****	****	1,052,697	****

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

SK TELECOM CO., LTD.

Separate Statements of Changes in Equity

For the years ended December 31, 2024 and 2023

(In millions of won)					Capital surplus and others
	Note		Sharecapital		Paid-in<br>surplus		Treasury<br>shares			Hybridbonds			Shareoption		Other			Sub-total			Retained<br>earnings			Reserves			Total<br>equity
Balance as of January 1, 2023			~~W~~	30,493	****	1,771,000	****	(36,702	)	****	398,759	****	****	2,061	****	(6,641,811	)	****	(4,506,693	)	****	14,691,461	****	****	168,121	****	****	10,383,382	****
Total comprehensive income:
Profit for the year				—		—		—			—			—		—			—			1,059,750			—			1,059,750
Other comprehensive income (loss)		18,19,26,30		—		—		—			—			—		—			—			21,794			(28,847	)		(7,053	)
				—		—		—			—			—		—			—			1,081,544			(28,847	)		1,052,697
Transactions with owners:
Annual dividends		33		—		—		—			—			—		—			—			(180,967	)		—			(180,967	)
Interim dividends		33		—		—		—			—			—		—			—			(542,282	)		—			(542,282	)
Share option		23		—		—		—			—			7,757		(600	)		7,157			—			—			7,157
Interest on hybrid bonds		22		—		—		—			—			—		—			—			(17,283	)		—			(17,283	)
Redemption of hybrid bonds		22		—		—		—			(398,759	)		—		(1,241	)		(400,000	)		—			—			(400,000	)
Issuance of hybrid bonds		22		—		—		—			398,509			—		—			398,509			—			—			398,509
Transactions of treasury shares		21		—		—		(265,279	)		—			—		159			(265,120	)		—			—			(265,120	)
				—		—		(265,279	)		(250	)		7,757		(1,682	)		(259,454	)		(740,532	)		—			(999,986	)
Balance as of December 31, 2023			~~W~~	30,493	****	1,771,000	****	(301,981	)	****	398,509	****	****	9,818	****	(6,643,493	)	****	(4,766,147	)	****	15,032,473	****	****	139,274	****	****	10,436,093	****
Balance as of January 1, 2024			~~W~~	30,493	****	1,771,000	****	(301,981	)	****	398,509	****	****	9,818	****	(6,643,493	)	****	(4,766,147	)	****	15,032,473	****	****	139,274	****	****	10,436,093	****
Total comprehensive income:
Profit for the year				—		—		—			—			—		—			—			1,280,484			—			1,280,484
Other comprehensive income (loss)		18,19,26,30		—		—		—			—			—		—			—			(66,289	)		69,456			3,167
				—		—		—			—			—		—			—			1,214,195			69,456			1,283,651
Transactions with owners:
Annual dividends		33		—		—		—			—			—		—			—			(223,335	)		—			(223,335	)
Interim dividends		33		—		—		—			—			—		—			—			(530,082	)		—			(530,082	)
Share option		23		—		—		—			—			4,680		493			5,173			—			—			5,173
Interest on hybrid bonds		22		—		—		—			—			—		—			—			(19,800	)		—			(19,800	)
Acquisition and disposal of treasury shares		21		—		—		9,019			—			—		135			9,154			—			—			9,154
Retirement of treasury shares		21		—		—		200,000			—			—		—			200,000			(200,000	)		—
				—		—		209,019			—			4,680		628			214,327			(973,217	)		—			(758,890	)
Balance as of December 31, 2024			~~W~~	30,493	****	1,771,000	****	(92,962	)	****	398,509	****	****	14,498	****	(6,642,865	)	****	(4,551,820	)	****	15,273,451	****	****	208,730	****	****	10,960,854	****

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

SK TELECOM CO., LTD.

Separate Statements of Cash Flows

For the years ended December 31, 2024 and 2023

(In millions of won)		2024			2023
Cash flows from operating activities:
Cash generated from operating activities:
Profit for the year		~~W~~	1,280,484			1,059,750
Adjustments for income and expenses	38		3,093,252			3,334,194
Changes in assets and liabilities related to operating activities	38		99,735			(148,374	)
			4,473,471			4,245,570
Interest received			36,833			32,673
Dividends received			216,886			208,026
Interest paid			(293,944	)		(283,654	)
Income tax paid			(244,313	)		(194,275	)
Net cash provided by operating activities		****	4,188,933	****	****	4,008,340	****
Cash flows from investing activities:
Cash inflows from investing activities:
Decrease in short-term financial instruments, net			109,738			—
Collection of short-term loans			121,314			126,398
Proceeds from disposals of long-term investment securities			36,171			17,939
Proceeds from disposals of investments in subsidiaries, associates and joint ventures			80,691			26,819
Proceeds from disposals of property and equipment			43,052			9,731
Proceeds from disposals of intangible assets			24,793			4,423
			415,759			185,310
Cash outflows for investing activities:
Increase in short-term financial instruments, net			—			(11,115	)
Increase in short-term loans			(108,326	)		(125,072	)
Acquisitions of long-term investment securities			(1,145	)		(284,509	)
Cash outflows from settlement of derivatives			(112,903	)		—
Acquisitions of investments in subsidiaries, associates and joint ventures			(285,604	)		(90,355	)
Acquisitions of property and equipment			(1,676,884	)		(1,977,806	)
Acquisitions of intangible assets			(32,925	)		(67,459	)
			(2,217,787	)		(2,556,316	)
Net cash used in investing activities		~~W~~	(1,802,028	)	****	(2,371,006	)

(Continued)

SK TELECOM CO., LTD.

Separate Statements of Cash Flows, Continued

For the years ended December 31, 2024 and 2023

(In millions of won)	2024			2023
Cash flows from financing activities:
Cash inflows from financing activities:
Proceeds from long-term borrowings	~~W~~	200,000			—
Proceeds from issuance of debentures		697,143			941,185
Cash inflows from settlement of derivatives		—			126,000
Proceeds from issuance of hybrid bonds		—			398,509
		897,143			1,465,694
Cash outflows for financing activities:
Repayments of short-term borrowings		—			(100,000	)
Repayments of long-term borrowings		(390,000	)		(100,000	)
Repayments of long-term payables – other		(369,150	)		(400,245	)
Repayments of debentures		(860,000	)		(1,309,000	)
Payments of dividends		(753,390	)		(723,215	)
Redemption of hybrid bonds		—			(400,000	)
Payments of interest on hybrid bonds		(19,800	)		(17,283	)
Repayments of lease liabilities		(341,989	)		(354,235	)
Acquisition of treasury shares		(15,788	)		(285,487	)
		(2,750,117	)		(3,689,465	)
Net cash used in financing activities	****	(1,852,974	)	****	(2,223,771	)
Net increase (decrease) in cash and cash equivalents	****	533,931	****	****	(586,437	)
Cash and cash equivalents at beginning of the year		631,066			1,217,504
Effects of exchange rate changes on cash and cash equivalents		161			(1	)
Cash and cash equivalents at end of the year	~~W~~	1,165,158			631,066

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

SK TELECOM CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

1.	Reporting Entity

SK Telecom Co., Ltd. (“the Company”) was incorporated on March 29, 1984, under the laws of the Republic of Korea (“Korea”) to provide cellular telephone communication services in Korea. The head office of the Company is located at 65, Eulji-ro, Jung-gu, Seoul, Korea.

The Company’s common shares are listed on the Stock Market of Korea Exchange, and its depositary receipts (DRs) are listed on the New York Stock Exchange. As of December 31, 2024, the Company’s total issued shares are held by the following shareholders:

	Number of shares
SK Inc.		65,668,397	30.57
National Pension Service		18,878,265	8.79
Institutional investors and other shareholders		124,493,193	57.96
Kakao Investment Co., Ltd.		3,846,487	1.79
Treasury shares		1,903,711	0.89
		214,790,053	100.00
2.	Basis of Preparation
---	---

These separate financial statements were prepared in accordance with International Financial Reporting Standards as adopted by the Republic of Korea (“KIFRS”), as prescribed in the Act on External Audits of Stock Companies of Korea. The accompanying separate financial statements have been translated into English from Korean financial statements. In the event of any differences in interpreting the financial statements or the independent auditor’s report thereon, Korean version, which is used for regulatory reporting purposes, shall prevail.

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

The separate financial statements were authorized for issuance by the Board of Directors on February 11, 2025, which may be subject to final amendments and approval at the shareholders’ meeting to be held on March 26, 2025.

(1)	Basis of measurement

The separate financial statements have been prepared on the historical cost basis, except for the following material items in the separate statement of financial position:

•	derivative financial instruments measured at fair value;
•	financial instruments measured at fair value through profit or loss (“FVTPL”);
---	---
•	financial instruments measured at fair value through other comprehensive income (“FVOCI”);<br>
---	---
•	liabilities measured at fair value for cash-settled share-based payment arrangement; and
---	---
•	liabilities (assets) for defined benefit plans recognized at the total present value of defined benefit<br>obligations less the fair value of plan assets.
---	---

SK TELECOM CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

2.	Basis of Preparation, Continued
(2)	Functional and presentation currency
---	---

These separate financial statements are presented in Korean won, which is the currency of the primary economic environment in which the Company operates.

(3)	Use of estimates and judgments

The preparation of the 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.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period prospectively.

1)	Critical judgments

Information about critical judgments in applying accounting policies that have the most significant effects on the amounts recognized in the separate financial statements is included in notes for the following areas: financial risk management.

2)	Assumptions and estimation uncertainties

Information about assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment within the next financial year is included in the following notes: loss allowance (notes 5 and 35), estimated useful lives of costs to obtain a contract (notes 3 (21), and 6), property and equipment and intangible assets (notes 3 (7), (8), 10 and 14), impairment of goodwill (notes 3 (10) and 13), recognition of provision (notes 3 (15) and 17), measurement of defined benefit liabilities (notes 3 (14) and 18), transaction of derivative instruments (notes 3 (6) and 19) and recognition of deferred tax assets (liabilities) (notes 3 (23) and 31).

3)	Fair value measurement

The Company’s accounting policies and disclosures require the measurement of fair values, for both a number of 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.

SK TELECOM CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

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

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 19 and note 35.

SK TELECOM CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

3.	Material Accounting Policies

The material accounting policies applied by the Company in the preparation of its separate financial statements in accordance with KIFRS are included below. Except for certain standards and amendments which are effective for annual periods beginning on or after January 1, 2024, the material accounting policies applied by the Company in these 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, 2023. The Company has not early adopted any standards, and interpretations or amendments that have been issued but are not yet effective.

•	Classification of Liabilities as Current or Non-current, Non-current Liabilities with Covenants (Amendments to KIFRS 1001)
•	Disclosures of Information on Supplier Finance Arrangements (Amendments to KIFRS 1007 and KIFRS 1107)<br>
---	---
•	Lease Liability in a Sale and Leaseback (Amendments to KIFRS 1116)
---	---
•	Disclosures of Virtual Assets (Amendments to KIFRS 1001)
---	---
(1)	Operating segments
---	---

The Company presents disclosures relating to operating segments on its consolidated financial statements in accordance with KIFRS 1108, Operating Segments, and such disclosures are not separately disclosed on these separate financial statements.

(2)	Investments in subsidiaries, associates, and joint ventures

These separate financial statements are prepared and presented in accordance with KIFRS 1027, Separate Financial Statements. The Company applies the cost method to investments in subsidiaries, associates and joint ventures in accordance with KIFRS 1027. Dividends from subsidiaries, associates, and joint ventures are recognized in profit or loss when the right to receive the dividends is established.

The assets and liabilities acquired under business combination under common control are recognized at the carrying amounts in the ultimate controlling shareholder’s consolidated financial statements. The difference between consideration and carrying amount of net assets acquired is added to or subtracted from capital surplus and others.

SK TELECOM CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

3.	Material Accounting Policies, Continued
(3)	Cash and cash equivalents
---	---

Cash and cash equivalents comprise cash balances, call deposits, and investment securities with maturities of three months or less from the acquisition date that are easily convertible to cash and subject to an insignificant risk of changes in their fair value.

(4)	Inventories

Inventories are initially recognized at the acquisition cost and subsequently measured using the average method. During the period, a perpetual inventory system is used to track inventory quantities, which is adjusted based on the physical inventory counts performed at the period end. When the net realizable value of inventories is less than cost, the carrying amount is reduced to the net realizable value, and any difference is charged to current period as operating expenses.

(5)	Non-derivative financial assets
1)	Recognition and initial measurement
---	---

Accounts receivable – trade and debt investments issued are initially recognized when they are originated. All other financial assets and financial liabilities are initially recognized when the Company becomes a party to the contractual provisions of the instrument.

SK TELECOM CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

3.	Material Accounting Policies, Continued
(5)	Non-derivative financial assets, Continued
---	---
2)	Classification and subsequent measurement
---	---

On initial recognition, a financial asset is classified as measured at:

•	FVTPL
•	FVOCI – equity investment
---	---
•	FVOCI – debt investment
---	---
•	Financial assets at amortized cost
---	---

A financial asset is classified based on the business model in which a financial asset is managed and its contractual cash flow characteristics.

Financial assets are not reclassified subsequent to their initial recognition unless the Company changes its business model for managing financial assets, in which case all affected financial assets are reclassified on the first day of the first reporting period following the change in the business model.

A financial asset is measured at amortized cost if it meets both of the following conditions and is not designated as at FVTPL:

•	it is held within a business model whose objective is to hold assets to collect contractual cash flows; and<br>
•	its contractual terms give rise to cash flows that are solely payments of principal and interest on the principal<br>amount outstanding on specified dates.
---	---

A debt investment is measured at FVOCI if it meets both of the following conditions and is not designated as at FVTPL:

•	it is held within a business model whose objective is achieved by both collecting contractual cash flows and<br>selling financial assets; and
•	its contractual terms give rise to cash flows that are solely payments of principal and interest on the principal<br>amount outstanding on specified dates.
---	---

On initial recognition of an equity investment that is not held for trading, the Company may irrevocably elect to present subsequent changes in the investment’s fair value in other comprehensive income (“OCI”). This election is made on an investment-by-investment basis.

All financial assets not classified as measured at amortized cost or FVOCI as described above are measured at FVTPL. This includes all derivative financial assets. On initial recognition, the Company may irrevocably designate a financial asset that otherwise meets the requirements to be measured at amortized cost or at FVOCI as at FVTPL if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise.

SK TELECOM CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

3.	Material Accounting Policies, Continued
(5)	Non-derivative financial assets, Continued
---	---
2)	Classification and subsequent measurement, Continued
---	---

The following accounting policies are applied to the subsequent measurement of financial assets.

Financial assets at FVTPL	These assets are subsequently measured at fair value. Net gains and losses, including any interest or dividend income, are recognized in profit or loss.
Financial assets at amortized cost	These assets are subsequently measured at amortized cost using the effective interest method. The amortized cost is reduced by impairment losses. Interest income, foreign exchange gains and losses and impairment are recognized in<br>profit or loss. Any gain or loss on derecognition is recognized in profit or loss.
Debt investments at FVOCI	These assets are subsequently measured at fair value. Interest income calculated using the effective interest method, foreign exchange gains and losses and impairment are recognized in profit or loss. Other net gains and losses<br>are recognized in OCI. On derecognition, gains and losses accumulated in OCI are reclassified to profit or loss.
Equity investments at FVOCI	These assets are subsequently measured at fair value. Dividends are recognized as income in profit or loss unless the dividend clearly represents a recovery of the cost of the investment. Other net gains and losses are recognized<br>in OCI and are never reclassified to profit or loss.
3)	Impairment
---	---

The Company estimates the expected credit losses (“ECL”) for the debt instruments measured at amortized cost and FVOCI based on the Company’s historical experience and informed credit assessment that includes forward-looking information. The impairment approach is decided based on the assessment of whether the credit risk of a financial asset has increased significantly since initial recognition. However, the Company applies a practical expedient and recognizes impairment losses equal to lifetime ECLs for accounts receivable – trade and lease receivables from the initial recognition.

At each reporting date, the Company assesses whether financial assets measured at amortized cost and debt investments at FVOCI are credit-impaired. A financial asset is ‘credit-impaired’ when one or more events that have a detrimental impact on the estimated future cash flows of the financial asset have occurred.

SK TELECOM CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

3.	Material Accounting Policies, Continued
(5)	Non-derivative financial assets, Continued
---	---
4)	Derecognition
---	---

Financial assets

The Company derecognizes a financial asset when:

•	the contractual rights to the cash flows from the financial asset expire; or
•	it transfers the rights to receive the contractual cash flows in a transaction in which either: substantially all<br>of the risks and rewards of ownership of the financial asset are transferred; or
---	---
•	the Company neither transfers nor retains substantially all of the risks and rewards of ownership and it does not<br>retain control of the financial asset.
---	---

The Company enters into transactions whereby it transfers assets recognized in its statement of financial position, but retains either all or substantially all of the risks and rewards of the transferred assets. In these cases, the transferred assets are not derecognized.

Interest rate benchmark reform

When the basis for determining the contractual cash flows of a financial asset or financial liability measured at amortized cost changed as a result of interest rate benchmark reform, the Company updated the effective interest rate of the financial asset or financial liability to reflect the change that is required by the reform. A change in the basis for determining the contractual cash flows is required by interest rate benchmark reform if the following conditions are met:

•	the change is necessary as a direct consequence of the reform; and
•	the new basis for determining the contractual cash flows is economically equivalent to the previous basis –<br>i.e., the basis immediately before the change.
---	---

When changes were made to a financial asset or financial liability in addition to changes to the basis for determining the contractual cash flows required by interest rate benchmark reform, the Company first updated the effective interest rate of the financial asset or financial liability to reflect the change that is required by interest rate benchmark reform. After that, the Company applied the policies on accounting for modifications to the additional changes.

5)	Offsetting

Financial assets and financial liabilities are offset, and the net amount is presented in the statement of financial position when the Company currently has a legally enforceable right to offset the recognized amounts and intends either to settle on a net basis or to settle the liability and realize the asset simultaneously.

SK TELECOM CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

3.	Material Accounting Policies, Continued
(6)	Derivative financial instruments, including hedge accounting
---	---

1)	Hedge accounting

The Company holds forward exchange contracts, interest rate swaps, currency swaps and other derivative contracts to manage interest rate risk and foreign exchange risk. The Company designates derivatives as hedging instruments to hedge the variability in cash flow associated with highly probable forecasted transactions or firm commitments (a cash flow hedge).

On initial designation of the hedge, the Company formally documents the relationship between the hedging instrument(s) and hedged item(s), including the risk management objectives and strategy in undertaking the hedge transaction, together with the methods that will be used to assess the effectiveness of the hedging relationship.

Hedges directly affected by interest rate benchmark reform

When uncertainty arises about the interest rate benchmark designated as a hedged risk and the timing or the amount of the interest rate benchmark-based cash flows of the hedged item or of the hedging instrument as a result of IBOR reform, for the purpose of evaluating whether there is an economic relationship between the hedged items and the hedging instruments, the Company assumes that the interest rate benchmark on which the hedged items and the hedging instruments are based is not altered as a result of interest rate benchmark reform.

For a cash flow hedge of a forecast transaction, the Company assumes that the benchmark interest rate will not be altered as a result of interest rate benchmark reform for the purpose of assessing whether the forecast transaction is highly probable and determining whether a previously designated forecast transaction in a discontinued cash flow hedge is still expected to occur.

The Company will cease applying the specific policy for assessing the economic relationship between the hedged item and the hedging instrument.

•	to a hedged item or hedging instrument when the uncertainty arising from interest rate benchmark reform is no<br>longer present with respect to the timing and the amount of the interest rate benchmark-based cash flows of the respective item or instrument; or
•	when the hedging relationship is discontinued.
---	---

When the basis for determining the contractual cash flows of the hedged item or hedging instrument changes as a result of IBOR reform and therefore there is no longer uncertainty arising about the cash flows of the hedged item or the hedging instrument, the Company amends the hedge documentation of that hedging relationship to reflect the change(s) required by IBOR reform.

The Company amends the formal hedge documentation by the end of the reporting period during which a change required by IBOR reform is made to the hedged risk, hedged item or hedging instrument. These amendments in the formal hedge documentation do not constitute the discontinuation of the hedging relationship or the designation of a new hedging relationship.

SK TELECOM CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

3.	Material Accounting Policies, Continued
(6)	Derivative financial instruments, including hedge accounting, Continued
---	---
1)	Hedge accounting, Continued
---	---

Hedges directly affected by interest rate benchmark reform, Continued

If changes are made in addition to those changes required by interest rate benchmark reform to the financial asset or financial liability designated in a hedging relationship or to the designation of the hedging relationship, the Company determines whether those additional changes result in the discontinuation of hedging accounting. If the additional changes do not result in the discontinuation of hedging accounting, the Company amend the formal designation of the hedging relationship.

When the interest rate benchmark on which the hedged future cash flows had been based is changed as required by IBOR reform, for the purpose of determining whether the hedged future cash flows are expected to occur, the Company deems that the hedging reserve recognized in OCI for that hedging relationship is based on the alternative benchmark rate on which the hedged future cash flows will be based.

Cash flow hedge

2)	Other derivative financial instruments

SK TELECOM CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

3.	Material Accounting Policies, Continued
(7)	Property and equipment
---	---

Property and equipment are initially measured at cost. The cost of property and equipment includes expenditures arising directly from the construction or acquisition of the asset, any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management, and the initial estimate of the costs of dismantling and removing the item and restoring the site on which it is located.

Property and equipment, subsequently, are carried at cost less accumulated depreciation and accumulated impairment losses.

Subsequent costs are recognized in the carrying amount of property and equipment at cost or, if appropriate, as a separate item if it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be reliably measured. The carrying amount of the replaced part is derecognized. The costs of the day-to-day servicing are recognized in profit or loss as incurred.

SK TELECOM CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

3.	Material Accounting Policies, Continued
(7)	Property and equipment, Continued
---	---

The estimated useful lives of the Company’s property and equipment are as follows:

	Useful lives (years)
Buildings and structures	15, 30
Machinery	3 ~ 8, 10, 30
Other property and equipment	4 ~10

The Company reviews estimated residual values, expected useful lives, and depreciation methods annually at the end of each reporting date and adjusts, if appropriate. The change is accounted for as a change in an accounting estimate.

(8)	Intangible assets

Intangible assets are measured initially at cost and, subsequently, are carried at cost less accumulated amortization and accumulated impairment losses.

Intangible assets, except for goodwill, are amortized on a straight-line basis over the estimated useful lives of intangible assets from the date that they are available for use. The residual value of intangible assets is zero. However, club memberships are expected to be available for use as there are no foreseeable limits to the periods. These intangible assets are determined as having indefinite useful lives and, therefore, not amortized.

The estimated useful lives of the Company’s intangible assets are as follows:

	Useful lives (years)
Frequency usage rights	5 ~ 10
Land usage rights	5
Industrial rights	5, 10
Facility usage rights	10, 20
Other	3 ~ 20

Expenditures on research activities are recognized in profit or loss as incurred. Development expenditures are capitalized only if development costs can be reliably measured, the product or process is technically and commercially feasible, future economic benefits are probable, and the Company intends to and has sufficient resources to complete development and to use or sell the asset. Other development expenditures are recognized in profit or loss as incurred.

SK TELECOM CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

3.	Material Accounting Policies, Continued
(9)	Investment properties
---	---

Subsequent expenditures are recognized in carrying amount of an asset or as a separate asset if it is probable that future economic benefits associated with the assets will flow into the Company and the cost of an asset can be measured reliably. The carrying amount of those parts that are replaced is derecognized. The costs associated with routine maintenance and repairs are recognized in profit or loss as incurred.

SK TELECOM CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

3.	Material Accounting Policies, Continued
(10)	Impairment of non-financial assets
---	---

The carrying amounts of the Company’s non-financial assets other than contract assets recognized for revenue arising from contracts with a customer, assets recognized for the costs to obtain or fulfill a contract with a customer, employee benefits, inventories, deferred tax assets, and non-current assets held for sale are reviewed at the end of the reporting period to determine whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated. Goodwill and intangible assets that have indefinite useful lives or that are not yet available for use, irrespective of whether there is any indication of impairment, are tested for impairment annually by comparing their recoverable amounts to their carrying amounts.

The Company estimates the recoverable amount of an individual asset, and if it is impossible to measure the individual recoverable amount of an asset, the Company estimates the recoverable amount of cash-generating unit (“CGU”). A CGU is the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets. The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs to sell. The value in use is estimated by applying a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or CGU, for which estimated future cash flows have not been adjusted, to the estimated future cash flows expected to be generated by the asset or CGU.

An impairment loss is recognized in profit or loss to the extent the carrying amount of the asset exceeds its recoverable amount.

SK TELECOM CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

3.	Material Accounting Policies, Continued
(11)	Leases
---	---

A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

1)	Company as a lessee

At commencement or on modification of a contract that contains a lease component, the Company allocates the consideration in the contract to each lease component on the basis of its relative stand-alone prices. However, the Company has elected not to separate non-lease components and account for the lease and non-lease components as a single lease component.

The Company recognizes a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received.

The right-of-use asset is subsequently depreciated using the straight-line basis from the commencement date to the end of the lease term, unless the lease transfers ownership of the underlying asset to the Company by the end of the lease term or the cost of the right-of-use asset reflects that the Company will exercise a purchase option. In that case the right-of-use asset will be depreciated over the useful life of the underlying asset, which is determined on the same basis as those of property and equipment. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Company’s incremental borrowing rate. Generally, the Company uses its incremental borrowing rate as the discount rate.

The Company determines its incremental borrowing rate by obtaining interest rates from various external financing sources and makes certain adjustments to reflect the terms of the lease and type of the asset leased.

Lease payments included in the measurement of the lease liability comprise the following:

•	fixed payments, including in-substance fixed payments;<br>
•	variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the<br>commencement date;
---	---
•	amounts expected to be payable under a residual value guarantee; and
---	---
•	the exercise price under a purchase option that the Company is reasonably certain to exercise, lease payments in<br>an optional renewal period if the Company is reasonably certain to exercise an extension option, and penalties for early termination of a lease unless the Company is reasonably certain not to terminate early.
---	---

SK TELECOM CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

3.	Material Accounting Policies, Continued
(11)	Leases, Continued
---	---
1)	Company as a lessee, Continued
---	---

The lease liability is measured at amortized cost using the effective interest method. It is remeasured when there is a change in future lease payments arising from a change in an index or rate, if there is a change in the Company’s estimate of the amount expected to be payable under a residual value guarantee, if the Company changes its assessment of whether it will exercise a purchase, extension or termination option or if there is a revised in-substance fixed lease payment.

The Company presents right-of-use assets that do not meet the definition of investment property in ‘property and equipment’ in the statement of financial position.

The Company has elected not to recognize right-of-use assets and lease liabilities for leases of low-value assets and short-term leases. The Company recognizes the lease payments on short-term leases and leases of low value assets as an expense on a straight-line basis over the lease term.

2)	Company as a lessor

At inception or on modification of a contract that contains a lease component, the Company allocates the consideration in the contract to each lease component on the basis of their relative stand-alone prices.

When the Company acts as a lessor, it determines at lease inception whether each lease is a finance lease or an operating lease.

To classify each lease, the Company makes an overall assessment of whether the lease transfers substantially all of the risks and rewards incidental to ownership of the underlying asset. If this is the case, then the lease is a finance lease; if not, then it is an operating lease. As part of this assessment, the Company considers certain indicators such as whether the lease is for the major part of the economic life of the asset.

When the Company is an intermediate lessor, it accounts for its interests in the head lease and the sub-lease separately. It assesses the lease classification of a sub-lease with reference to the right-of-use asset arising from the head lease, not with reference to the underlying asset. If a head lease is a short-term lease to which the Company applies the exemption described above, then it classifies the sub-lease as an operating lease.

If an arrangement contains lease and non-lease components, then the Company applies KIFRS 1115 to allocate the consideration in the contract.

The Company applies derecognition and impairment requirements in KIFRS 1109 to the net investment in the lease. The Company further regularly reviews estimated unguaranteed residual values used in calculating the gross investment in the lease.

The Company recognizes lease payments received under operating leases as income on a straight-line basis over the lease term as part of ‘other revenue’.

SK TELECOM CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

3.	Material Accounting Policies, Continued
(12)	Non-current assets held for sale
---	---

Non-current assets, or disposal groups comprising assets and liabilities, that are expected to be recovered primarily through sales rather than through continuing use, are classified as held for sale. In order to be classified as held for sale, the assets (or disposal groups) must be available for immediate sale in their present condition and their sale must be highly probable. The assets or disposal groups that are classified as non-current assets held for sale are measured at the lower of their carrying amounts and fair value less cost to sell. The Company recognizes an impairment loss for any initial or subsequent write-down of assets (or disposal groups) to fair value less costs to sell and a gain for any subsequent increase in fair value less costs to sell up to the cumulative impairment loss previously recognized.

A non-current asset that is classified as held for sale or part of a disposal group classified as held for sale is not depreciated (or amortized).

(13)	Non-derivative financial liabilities

The Company classifies non-derivative financial liabilities into financial liabilities at fair value through profit or loss or other financial liabilities in accordance with the substance of the contractual arrangement. The Company recognizes financial liabilities in the separate statement of financial position when the Company becomes a party to the contractual provisions of the financial liabilities.

1)	Financial liabilities at fair value through profit or loss

2)	Other financial liabilities

3)	Derecognition of financial liability

The Company extinguishes a financial liability only when the contractual obligation is fulfilled, canceled or expires. The Company recognizes new financial liabilities at fair value based on new contracts and eliminates existing liabilities when the contractual terms of the financial liabilities change and the cash flows change substantially.

When a financial liability is derecognized, the difference between the carrying amount and the consideration paid(including any transferred non-cash assets or liabilities assumed) is recognized in profit or loss.

SK TELECOM CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

3.	Material Accounting Policies, Continued
(14)	Employee benefits
---	---
1)	Short-term employee benefits
---	---

Short-term employee benefits are employee benefits that are due to be settled within 12 months after the end of the period in which the employees render related services. When an employee has rendered a service to the Company during an accounting period, the Company recognizes the undiscounted amount of short-term employee benefits expected to be paid in exchange for that service.

2)	Other long-term employee benefits

Other long-term employee benefits include employee benefits that are settled beyond 12 months after the end of the period in which the employees render related services. The Company’s net obligation in respect of long-term employee benefits is the amount of future benefit that employees have earned in return for their service in the current and prior periods. That benefit is discounted to determine its present value. Remeasurements are recognized in profit or loss in the period in which they arise.

3)	Retirement benefits: defined contribution plans

When an employee has rendered a service to the Company during a period, the Company recognizes the contribution payable to a defined contribution plan in exchange for that service as a liability (accrued expense), after deducting any contribution already paid. If the contribution already paid exceeds the contribution due for service before the end of the reporting period, the Company recognizes that excess as an asset (prepaid expense) to the extent that the prepayment will lead to a reduction in future payments or a cash refund.

4)	Retirement benefits: defined benefit plans

At the end of reporting period, defined benefit liabilities (assets) relating to defined benefit plans are recognized at present value of defined benefit obligations net of fair value of plan assets.

The calculation is performed annually by an independent actuary using the projected unit credit method. When the fair value of plan assets exceeds the present value of the defined benefit obligation, the Company recognizes an asset, to the extent of the present value of any economic benefits available in the form of refunds from the plan or reduction in the future contributions to the plan.

Remeasurements of the net defined benefit liability (asset), which comprise actuarial gains and losses, the return on plan assets (excluding interest) and the effect of the asset ceiling (if any, excluding interest), are recognized immediately in other comprehensive income. The Company determines net interests on net defined benefit liability (asset) by multiplying discount rate determined at the beginning of the annual reporting period and considers changes in net defined benefit liability (asset) from contributions and benefit payments. Net interest costs and other costs relating to the defined benefit plan are recognized through profit or loss.

When the plan amendment or curtailment occurs, gains or losses on amendment or curtailment in benefits for the past service provided are recognized through profit or loss. The Company recognizes a gain or loss on a settlement when the settlement of defined benefit plan occurs.

SK TELECOM CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

3.	Material Accounting Policies, Continued
(15)	Provisions
---	---

Provisions are recognized when the Company has a present legal or constructive obligation as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.

A provision is used only for expenditures for which the provision was originally recognized.

SK TELECOM CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

3.	Material Accounting Policies, Continued
(16)	Emissions Rights
---	---

The Company accounts for greenhouse gases emission right and the relevant liability as below pursuant to the Act on Allocation and Trading of Greenhouse Gas Emission in Korea.

1)	Greenhouse Gases Emission Right

The Company derecognizes an emission right asset when the emission allowance is unusable, disposed or submitted to government in which the future economic benefits are no longer expected to be probable.

2)	Emissions liability

SK TELECOM CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

3.	Material Accounting Policies, Continued
(17)	Transactions in foreign currencies
---	---

Transactions in foreign currencies are translated to the functional currency of the Company at exchange rates at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies are retranslated to the functional currency using the exchange rate at the reporting date. Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are retranslated to the functional currency at the exchange rate at the date that the fair value was determined.

(18)	Share capital

When the Company repurchases its own shares, the amount of the consideration paid is recognized as a deduction from equity and classified as treasury shares. The gains or losses from the purchase, disposal, reissue, or retirement of treasury shares are directly recognized in equity being as transaction with owners.

(19)	Hybrid bond

The Company recognizes a financial instrument issued by the Company as an equity instrument if it does not include contractual obligation to deliver financial assets including cash to the counter party.

(20)	Share-based payment

For equity-settled share-based payment transaction, if the fair value of the goods or services received cannot be reliably estimated, the Company measures the value indirectly by reference to the fair value of the equity instruments granted. The related expense with a corresponding increase in capital surplus and others is recognized over the vesting period of the awards.

SK TELECOM CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

3.	Material Accounting Policies, Continued
(21)	Revenue
---	---
1)	Identification of performance obligations in contracts with customers
---	---

The Company identifies the distinct services or goods as performance obligations in contracts with customers such as (1) providing wireless telecommunications services and (2) sale other goods and services. In the case of providing both wireless telecommunications service and selling a handset together to one customer, the Company allocates considerations from the customer between the separate performance obligations for handset sale and wireless telecommunications service. The handset sale revenue is recognized when handset is delivered, and the wireless telecommunications service revenue is recognized over the period of the contract term as stated in the subscription contract.

2)	Allocation of the transaction price to each performance obligation

The Company allocates the transaction price of a contract to each performance obligation identified on a relative stand-alone selling price basis. The Company uses “adjusted market assessment approach” for estimating the stand-alone selling price of a good or service.

3)	Incremental costs of obtaining a contract

The Company pays commissions to its retail stores and authorized dealers in connection with acquiring service contracts. The commissions paid to these parties constituted a significant portion of the Company’s operating expenses. These commissions would not have been paid if there have been no binding contracts with subscribers and, therefore, the Company capitalizes certain costs associated with commissions paid to obtain new customer contracts and amortize them over the expected contract periods.

4)	Customer loyalty programs

The Company provides customer loyalty points to customers based on the usage of the service to which the Company allocates a portion of consideration received as a performance obligation distinct from wireless telecommunications services. The amount to be allocated to the loyalty program is measured according to the relative stand-alone selling price of the customer loyalty points. The amount allocated to the loyalty program is deferred as a contract liability and is recognized as revenue when loyalty points are redeemed.

5)	Consideration payable to a customer

Based on the subscription contract, a customer who uses the Company’s wireless telecommunications services may receive a discount for purchasing goods or services from a designated third party. The Company pays a portion of the price discounts that the customer receives to the third party which is viewed as consideration payable to a customer. The Company accounts for the amounts payable to the third party as a reduction of the wireless telecommunications service revenue.

SK TELECOM CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

3.	Material Accounting Policies, Continued
(22)	Finance income and finance costs
---	---

SK TELECOM CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

3.	Material Accounting Policies, Continued
(23)	Income taxes
---	---

The Company pays income tax in accordance with the tax-consolidation system when the Company and its subsidiaries are economically unified.

1)	Current tax

In accordance with the tax-consolidation system, the Company calculates current taxes on the consolidated taxable income for the Company and its subsidiaries that meet the criteria for the consolidated income tax returns and recognizes the income tax payable as current tax liabilities of the Company.

2)	Deferred tax

Deferred tax is recognized by using the asset-liability method in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. The Company recognizes a deferred tax liability for all taxable temporary differences, except for the difference associated with investments in subsidiaries and associates that the Company is able to control the timing of the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. The Company recognizes a deferred tax asset for all deductible temporary differences, to the extent that it is probable that the temporary difference will reverse in the foreseeable future and taxable profit will be available against which the temporary difference can be utilized.

A deferred tax asset is recognized for the carryforward of unused tax losses and unused tax credits to the extent that it is probable that future taxable profit will be available against which the unused tax losses and unused tax credits can be utilized. Future taxable profit is dependent on the reversal of taxable temporary differences. If there are insufficient taxable temporary differences to recognize the deferred tax asset, the business plan of the Company and the reversal of existing temporary differences are considered in determining the future taxable profit.

The Company reviews the carrying amount of a deferred tax asset at the end of each reporting period and reduces the carrying amount to the extent that it is no longer probable that sufficient taxable profit will be available to allow the benefit of part or all of that deferred tax asset to be utilized.

SK TELECOM CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

3.	Material Accounting Policies, Continued
(23)	Income taxes, Continued
---	---
2)	Deferred tax, Continued
---	---

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities and deferred tax assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

Deferred tax assets and liabilities are offset only if the Company has a legally enforceable right to offset the amount recognized and intends to settle the current tax liabilities and assets on a net basis. Income tax expense in relation to dividend payments is recognized when liabilities relating to the dividend payments are recognized.

3)	Uncertainty over income tax treatments

The Company assesses the uncertainty over income tax treatments pursuant to KIFRS 1012. If the Company concludes it is not probable that the taxation authority will accept an uncertain tax treatment, the Company reflects the effect of uncertainty for each uncertain tax treatment by using either of the following methods, depending on which method the entity expects to better predict the resolution of the uncertainty:

•	The most likely amount – the single most likely amount in a range of possible outcomes.<br>
•	The expected value – the sum of the probability-weighted amounts in a range of possible outcomes.<br>
---	---
(24)	Earnings per share
---	---

The Company presents basic and diluted earnings per share (EPS) data for its ordinary shares. Basic EPS is calculated by dividing the profit or loss attributable to ordinary shareholders of the Company by the weighted average number of ordinary shares outstanding during the period, adjusted for own shares held. Diluted EPS is determined by adjusting the profit or loss attributable to ordinary shareholders and the weighted average number of ordinary shares outstanding, adjusted for own shares held, for the effects of all dilutive potential ordinary shares, which comprise share options granted to employees, if any.

(25)	Standards issued but not yet effective

•	Lack of Exchangeability (Amendments to KIFRS 1021 and KIFRS 1101)
•	Classification and measurement of financial instruments (Amendments to KIFRS 1109 and KIFRS 1107)<br>
---	---
•	Annual Improvements to KIFRS - Volume 11
---	---

SK TELECOM CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

4.	Deposits with Restrictions on Use

Deposits which are restricted in use as of December 31, 2024 and 2023 are summarized as follows:

(In millions of won)
		December 31, 2024		December 31, 2023
Short-term financial instruments	Charitable trust fund(*1)	~~W~~	79,000		79,000
Long-term financial	Collateral deposits for time deposit(*2)		130		130
instruments	Guarantee deposit		12		12
	Collateral deposit(*3)		212		212
		~~W~~	79,354		79,354
(*1)	The charitable trust fund is for shared growth established by SK Group and profits from the charitable trust<br>fund are only used for the purpose of financial support for small and medium-sized enterprises that cooperate with SK Group. As of December 31, 2024, the funds cannot be withdrawn before maturity<br>(~~W~~63,000 million on July 5, 2025 and ~~W~~16,000 million on July 10, 2025).
---	---
(*2)	The deposit is for registration of electrical construction business and specialized energy construction<br>business in accordance with Enforcement Decree of the Electrical Constriction Business Act and Enforcement Decree of the Framework Act on the Construction Industry, respectively. Accordingly, the deposit is restricted in use while the<br>Company operates the businesses.
---	---
(*3)	The deposit is for registration of mechanical facility construction business and general construction business<br>in accordance with Enforcement Decree of the Framework Act on the Construction Industry. Accordingly, the deposit is restricted in use while the Company operates the businesses.
---	---

SK TELECOM CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

5.	Trade and Other Receivables
(1)	Details of trade and other receivables as of December 31, 2024 and 2023 are as follows:<br>
---	---

(In millions of won)

	December 31, 2024
	Gross amount		Lossallowance			Carryingamount
Current assets:
Accounts receivable – trade	~~W~~	1,611,947		(103,054	)		1,508,893
Short-term loans		56,138		(561	)		55,577
Accounts receivable – other(*)		412,310		(22,067	)		390,243
Guarantee deposits		67,521		—			67,521
Accrued income		2,243		—			2,243
		2,150,159		(125,682	)		2,024,477
Non-current assets:
Long-term loans		41,530		(41,040	)		490
Long-term accounts receivable – other(*)		239,008		—			239,008
Guarantee deposits		85,939		—			85,939
		366,477		(41,040	)		325,437
	~~W~~	2,516,636		(166,722	)		2,349,914
(*)	Gross and carrying amounts of accounts receivable – other as of December 31, 2024 include<br>~~W~~223,761 million of financial instruments classified as fair value through profit or loss (“FVTPL”).
---	---
(In millions of won)	December 31, 2023
---	---	---	---	---	---	---	---
	Gross amount		Lossallowance			Carryingamount
Current assets:
Accounts receivable – trade	~~W~~	1,589,862		(94,245	)		1,495,617
Short-term loans		69,501		(695	)		68,806
Accounts receivable – other(*)		370,860		(27,824	)		343,036
Guarantee deposits		72,479		—			72,479
Accrued income		2,643		—			2,643
		2,105,345		(122,764	)		1,982,581
Non-current assets:
Long-term loans		41,155		(41,036	)		119
Long-term accounts receivable – other(*)		308,868		—			308,868
Guarantee deposits		91,220		—			91,220
		441,243		(41,036	)		400,207
	~~W~~	2,546,588		(163,800	)		2,382,788
(*)	Gross and carrying amounts of accounts receivable – other as of December 31, 2023 include<br>~~W~~273,945 million of financial instruments classified as fair value through profit or loss (“FVTPL”).
---	---

SK TELECOM CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

5.	Trade and Other Receivables, Continued
(2)	Changes in the loss allowance on accounts receivable – trade measured at amortized cost for the years<br>ended December 31, 2024 and 2023 are as follows:
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---	---	---	---
	Beginning balance		Impairment		*Write-offs()**			Collection of<br>receivables<br>previously<br>written-off		Ending<br>balance
2024	~~W~~	94,245		33,085		(31,218	)		6,942		103,054
2023	~~W~~	86,231		28,765		(28,442	)		7,691		94,245
(*)	The Company writes off the trade and other receivables that are determined to be uncollectable due to reasons<br>such 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 the accounts receivable – trade by their credit risk characteristics and days overdue. Details of loss allowance on accounts receivable – trade as of December 31, 2024 are as follows:
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---	---	---	---	---	---
		Less than 6<br>months			6 months ~<br>1 year			1 ~ 3<br>years			More than 3<br>years
Telecommunications service revenue	Expected credit loss rate		0.55	%		55.54	%		76.78	%		99.98	%
	Gross amount	~~W~~	1,160,932			19,034			52,916			17,714
	Loss allowance		6,341			10,571			40,629			17,710
Other revenue	Expected credit loss rate		2.35	%		53.97	%		50.20	%		98.66	%
	Gross amount	~~W~~	335,495			3,461			8,355			14,040
	Loss allowance		7,889			1,868			4,194			13,852

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 rating. While the contract assets are under the impairment requirements, no significant credit risk has been identified.

SK TELECOM CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

6.	Prepaid Expenses

The Company pays commissions to its retail stores and authorized dealers for wireless telecommunications services based on their performance of attracting new customers and renewing contracts with existing customers, and recognizes costs that would not occur in case of not signing contracts with new and existing customers as prepaid expenses among the commissions. 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 December 31, 2024 and 2023 are as follows:
(In millions of won)
---	---	---	---	---
	December 31, 2024		December 31, 2023
Current assets:
Incremental costs of obtaining contracts	~~W~~	1,773,253		1,795,410
Others		29,489		33,236
	~~W~~	1,802,742		1,828,646
Non-current assets:
Incremental costs of obtaining contracts	~~W~~	856,138		863,650
Others		38,088		35,104
	~~W~~	894,226		898,754
(2)	Incremental costs of obtaining contracts
---	---

The amortization in connection with incremental costs of obtaining contracts recognized as an asset for the years ended December 31, 2024 and 2023 are as follows:

(In millions of won)	2024		2023
Amortization recognized	~~W~~	2,346,474		2,390,984

SK TELECOM CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

7.	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 December 31, 2024 and 2023 are as follows:<br>
(In millions of won)
---	---	---	---	---
	December 31, 2024		December 31, 2023
Contract assets:
Allocation of consideration between performance obligations	~~W~~	18,576		21,613
Contract liabilities:
Wireless service contracts		20,275		19,149
Customer loyalty programs		5,694		7,164
Others		52,241		37,899
	~~W~~	78,210		64,212
(2)	The amount of revenue recognized for the years ended December 31, 2024 and 2023 related to the contract<br>liabilities carried forward from the prior periods are ~~W~~51,986 million and ~~W~~75,521million, respectively. Details of revenue expected to be recognized from contract liabilities<br>as of December 31, 2024 are as follows:
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---
	Less than1 year		1 ~ 2years		More than<br>2 years		Total
Wireless service contracts	~~W~~	20,275		—		—		20,275
Customer loyalty programs		4,166		1,023		505		5,694
Others		52,241		—		—		52,241
	~~W~~	76,682		1,023		505		78,210

SK TELECOM CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

8.	Long-term Investment Securities

Details of long-term investment securities as of December 31, 2024 and 2023 are as follows:

(In millions of won)
	Category			December 31, 2024		December 31, 2023
Equity instruments		FVOCI	(*)	~~W~~	1,342,902		1,207,605
Debt instruments		FVTPL			75,563		218,685
				~~W~~	1,418,465		1,426,290
(*)	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 December 31, 2024 and 2023 are ~~W~~1,342,902 million and ~~W~~1,207,605 million, respectively.<br>
---	---

SK TELECOM CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

9.	Investments in Subsidiaries, Associates and Joint Ventures
(1)	Investments in subsidiaries, associates and joint ventures as of December 31, 2024 and 2023 are as<br>follows:
---	---
(In millions of won)
---	---	---	---	---
	December 31, 2024		December 31, 2023
Investments in subsidiaries	~~W~~	3,519,072		3,259,021
Investments in associates and joint ventures		1,380,486		1,411,547
	~~W~~	4,899,558		4,670,568
(2)	Details of investments in subsidiaries as of December 31, 2024 and 2023 are as follows:<br>
---	---

(In millions of won, except for share data)

	December 31, 2024						December 31, 2023
	Number ofshares		Ownership<br>(%)		Carryingamount		Carrying<br>amount
SK Telink Co., Ltd.(*1)		1,432,627		100.0	~~W~~	244,040		244,015
SK Broadband Co., Ltd.(*1)		299,052,435		74.4		2,218,450		2,216,865
NATE Communications Corporation (Formerly, SK Communications Co., Ltd.)(*2)		43,427,530		100.0		—		24,927
PS&Marketing Corporation(*1)		66,000,000		100.0		314,038		313,989
SERVICE ACE Co., Ltd. (*1)		4,385,400		100.0		21,963		21,946
SK Telecom China Holdings Co., Ltd.		—		100.0		48,096		48,096
SK Telecom Americas, Inc. (*3)		122		100.0		128,916		70,269
Atlas Investment(*4)		—		100.0		238,675		193,661
SK stoa Co., Ltd. (*1)		3,631,355		100.0		40,081		40,057
Quantum Innovation Fund I(*5)		—		—		—		1,297
SAPEON Inc.		400,000		62.5		48,456		48,456
Astra AI Infra LLC(*6)		—		100.0		182,805		—
SK O&S Co., Ltd. and others(*1,7)		—		—		33,552		35,443
					~~W~~	3,519,072		3,259,021

SK TELECOM CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

9.	Investments in Subsidiaries, Associates and Joint Ventures, Continued
(2)	Details of investments in subsidiaries as of December 31, 2024 and 2023 are as follows, Continued:<br>
---	---
(*1)	The Company granted Performance Share Units (“PSU”) stock options to executives of its subsidiaries,<br>resulting in a cumulative total contribution of ~~W~~1,738 million. There is no change in the ownership interest. (See note 23)
---	---
(*2)	The Company reclassified the entire shares of NATE Communications Corporation (formerly, SK Communications Co.,<br>Ltd.) as non-current assets held for sale and recognized an impairment loss of ~~W~~17,892 million. (See note 40).
---	---
(*3)	The Company additionally contributed ~~W~~58,647 million in cash for the<br>year ended December 31, 2024, but there is no change in the ownership interest.
---	---
(*4)	The Company additionally contributed ~~W~~45,014million in cash for the year<br>ended December 31, 2024, but there is no change in the ownership interest.
---	---
(*5)	The Company received ~~W~~2,093 million from the liquidation of Quantum<br>Innovation Fund I and recognized a ~~W~~796 million gain relating to investments in subsidiaries for the year ended December 31, 2024.
---	---
(*6)	The Company newly contributed ~~W~~182,805 million in cash for the year<br>ended December 31, 2024.
---	---
(*7)	The Company received ~~W~~627 million from the liquidation of SK Global<br>Healthcare Business Group Ltd. and recognized a ~~W~~1,303 million loss relating to investments in subsidiaries for the year ended December 31, 2024.
---	---

SK TELECOM CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

9.	Investments in Subsidiaries, Associates and Joint Ventures, Continued
(3)	Details of investments in associates and joint ventures as of December 31, 2024 and 2023 are as follows:<br>
---	---

(In millions of won, except for share data)

	December 31, 2024						December 31, 2023
	Number ofshares		Ownership(%)		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
SK Technology Innovation Company(*2)		7,840		49.0		24,308		45,864
SM Culture & Contents Co., Ltd.(*3)		22,033,898		22.8		41,578		41,578
SK South East Asia Investment Pte. Ltd.		300,000,000		20.0		344,240		344,240
Citadel Pacific Telecom Holdings, LLC(*4)		1,734,109		15.0		36,487		36,487
CMES Inc.(*4,5)		763,968		6.6		5,488		900
Konan Technology Inc.		2,359,160		20.6		22,413		22,413
12CM JAPAN and others(*4,6,7,8,9,10,11,12,13)		—		—		73,823		87,916
						1,370,486		1,401,547
Investments in joint ventures:
UTC Kakao-SK Telecom ESG Fund(*14)		10,000		48.2		10,000		10,000
					~~W~~	1,380,486		1,411,547
(*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 received ~~W~~48,240 million from the paid-in capital reduction<br>of SK Technology Innovation Company and recognized a ~~W~~26,683 million gain relating to investments in associates for the year ended December 31, 2024, with no change in ownership interest.<br>
---	---
(*3)	The Company recognized an impairment loss of ~~W~~23,763 million as the<br>recoverable amount was assessed to be less than the carrying amount for the year ended December 31, 2023.
---	---
(*4)	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.
---	---
(*5)	The Company acquired an additional ~~W~~8,984 million of shares by<br>exercising the conversion rights of the redeemable convertible preference shares, and disposed of a portion of the shares for ~~W~~14,872 million in cash, from which it recognized a<br>~~W~~10,476 million gain on disposal of such investment in associate for the year ended December 31, 2024. Due to the acquisition, disposal of shares and exercise of stock options by other shareholders, the<br>ownership interest of the Company decreased from 7.7% to 6.6%
---	---

SK TELECOM CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

9.	Investments in Subsidiaries, Associates and Joint Ventures, Continued
(*6)	The Company contributed an additional ~~W~~5,878 million to SK AMERICAS Inc.<br>(formerly, SK USA Inc.) for the year ended December 31, 2024, and the ownership interest of the Company has decreased from 49.0% to 20.0% due to the paid-in capital increase through disproportionate<br>allotment of shares.
---	---
(*7)	The Company contributed an additional ~~W~~1,683 million to SK telecom Japan<br>Inc. for the year ended December 31, 2024, and the ownership interest of the Company has decreased from 33.0% to 24.9% due to the paid-in capital increase through disproportionate allotment of shares.<br>
---	---
(*8)	The Company disposed of a portion of shares in Start-up Win-Win Fund for ~~W~~200 million in cash, and disposed of the entire shares of Daliworks Inc. and 12CM JAPAN for ~~W~~150 million and<br>~~W~~1 million in cash, respectively, from which it recognized ~~W~~1,818 million and ~~W~~2,451 million losses on disposals of such investments in associates,<br>respectively, for the year ended December 31, 2024.
---	---
(*9)	The Company newly acquired a portion of shares of ~~W~~1,294 million of<br>AhnLab Blockchain Company by contribution in kind for the year ended December 31, 2024.
---	---
(*10)	The Company granted Performance Share Units (“PSU”) for executives of associates for the year ended<br>December 31, 2024, resulting in a cumulative contribution amount to ~~W~~24 million. There is no change in the ownership interest. (See note 23).
---	---
(*11)	The Company received ~~W~~57 million from the liquidation of Wave City Co.,<br>Ltd. and recognized a ~~W~~57 million gain relating to investments in associates for the year ended December 31, 2024.
---	---
(*12)	The Company reclassified the entire shares of F&U Credit information Co., Ltd. as non-current assets held for sale. (See note 40).
---	---
(*13)	The Company received ~~W~~14,453 million from the paid-in capital reduction<br>of SK Latin America Investment S.A and recognized a ~~W~~634 million gain relating to investments in associates for the year ended December 31, 2024, with no change in ownership interest.<br>
---	---
(*14)	As the Company has a joint control over the investee pursuant to the agreement with the other shareholders, the<br>investment in the investee was classified as investments in joint ventures.
---	---

SK TELECOM CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

9.	Investments in Subsidiaries, Associates and Joint Ventures, Continued
(4)	The market value of investments in listed associates as of December 31, 2024 and 2023 are as follows:<br>
---	---
(In millions of won, except for share data)
---	---	---	---	---	---	---	---	---	---	---	---	---
	December 31, 2024						December 31, 2023
	Market priceper share<br>(in won)		Number ofshares		Marketvalue		Market price<br>per share<br>(in won)		Number ofshares		Marketvalue
SM Culture & Contents Co., Ltd.	~~W~~	1,400		22,033,898		30,847		1,887		22,033,898		41,578
Konan Technology Inc.		19,470		2,359,160		45,933		32,600		2,359,160		76,909
CMES Inc.		24,000		763,968		18,335		—		—		—

SK TELECOM CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

10.	Property and Equipment
(1)	Property and equipment as of December 31, 2024 and 2023 are as follows:
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---	---	---
	December 31, 2024
	Acquisition cost		Accumulateddepreciation			Accumulated<br>impairment loss			Carrying<br>amount
Land	~~W~~	739,856		—			—			739,856
Buildings		1,365,405		(787,580	)		(450	)		577,375
Structures		954,220		(742,590	)		(1,601	)		210,029
Machinery		27,973,787		(22,832,630	)		(10,969	)		5,130,188
Right-of-use<br>assets		1,940,054		(857,070	)		—			1,082,984
Other		1,385,752		(1,053,658	)		—			332,094
Construction in progress		443,624		—			(925	)		442,699
	~~W~~	34,802,698		(26,273,528	)		(13,945	)		8,515,225
(In millions of won)
	December 31, 2023
	Acquisition cost		Accumulateddepreciation			Accumulated<br>impairment loss			Carrying<br>amount
Land	~~W~~	723,069		—			—			723,069
Buildings		1,313,507		(744,787	)		(450	)		568,270
Structures		939,983		(704,932	)		(1,601	)		233,450
Machinery		27,625,424		(22,394,558	)		—			5,230,866
Right-of-use<br>assets		1,983,163		(756,288	)		—			1,226,875
Other		1,493,783		(1,056,929	)		—			436,854
Construction in progress		657,075		—			—			657,075
	~~W~~	34,736,004		(25,657,494	)		(2,051	)		9,076,459

SK TELECOM CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

10.	Property and Equipment, Continued
(2)	Changes in property and equipment for the years ended December 31, 2024 and 2023 are as follows:<br>
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	2024
	Beginningbalance		Acquisition		Disposal			Transfer			Depreciation			Impairment			Endingbalance
Land	~~W~~	723,069		99		(2,213	)		18,901			—			—			739,856
Buildings		568,270		745		(1,138	)		52,608			(43,110	)		—			577,375
Structures		233,450		991		(76	)		13,409			(37,745	)		—			210,029
Machinery		5,230,866		110,486		(18,147	)		1,395,280			(1,577,328	)		(10,969	)		5,130,188
Right-of-use<br>assets		1,226,875		325,743		(40,192	)		(66,906	)		(362,536	)		—			1,082,984
Other		436,854		374,002		(11,788	)		(404,284	)		(62,690	)		—			332,094
Construction in progress		657,075		1,020,328		(5,030	)		(1,228,749	)		—			(925	)		442,699
	~~W~~	9,076,459		1,832,394		(78,584	)		(219,741	)		(2,083,409	)		(11,894	)		8,515,225
(In millions of won)
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	2023
	Beginningbalance		Acquisition		Disposal			Transfer			Depreciation			Ending<br>balance
Land	~~W~~	646,286		8		(388	)		77,163			—			723,069
Buildings		562,976		372		(152	)		47,161			(42,087	)		568,270
Structures		264,327		1,279		(200	)		6,477			(38,433	)		233,450
Machinery		5,274,612		98,114		(493	)		1,470,364			(1,611,731	)		5,230,866
Right-of-use<br>assets		1,372,466		253,838		(36,160	)		(4,768	)		(358,501	)		1,226,875
Other		444,324		536,726		(874	)		(476,653	)		(66,669	)		436,854
Construction in progress		954,672		1,026,496		(26	)		(1,324,067	)		—			657,075
	~~W~~	9,519,663		1,916,833		(38,293	)		(204,323	)		(2,117,421	)		9,076,459

SK TELECOM CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

11.	Investment Property
(1)	Investment property as of December 31, 2024 and 2023 are as follows:
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	December 31, 2024							December 31, 2023
	Acquisition<br>cost		Accumulateddepreciation			Carrying<br>amount		Acquisition<br>cost		Accumulateddepreciation			Carrying<br>amount
Land	~~W~~	15,069		—			15,069		16,288		—			16,288
Buildings		57,057		(38,723	)		18,334		55,629		(37,345	)		18,284
Right-of-use<br>assets		2,726		(667	)		2,059		21,313		(9,805	)		11,508
	~~W~~	74,852		(39,390	)		35,462		93,230		(47,150	)		46,080
(2)	Changes in investment property for the years ended December 31, 2024 and 2023 are as follows:<br>
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---	---	---
	2024
	Beginning<br>balance		Transfer			Depreciation			Ending<br>balance
Land	~~W~~	16,288		(1,219	)		—			15,069
Buildings		18,284		1,953			(1,903	)		18,334
Right-of-use<br>assets		11,508		(9,169	)		(280	)		2,059
	~~W~~	46,080		(8,435	)		(2,183	)		35,462
(In millions of won)
---	---	---	---	---	---	---	---	---	---	---
	2023
	Beginning<br>balance		Transfer			Depreciation			Ending<br>balance
Land	~~W~~	16,485		(197	)		—			16,288
Buildings		19,066		1,059			(1,841	)		18,284
Right-of-use<br>assets		16,472		5,402			(10,366	)		11,508
	~~W~~	52,023		6,264			(12,207	)		46,080
(3)	The Company recognized lease income of ~~W~~15,127 million and<br>~~W~~22,773 million from investment property for the years ended December 31, 2024 and 2023, respectively.
---	---
(4)	The fair value of investment property is ~~W~~157,975 million and<br>~~W~~157,071 million as of December 31, 2024 and 2023, respectively.
---	---

SK TELECOM CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

12.	Leases
(1)	Company as a lessee
---	---
1)	Details of the right-of-use<br>assets as of December 31, 2024 and 2023 are as follows:
---	---
(In millions of won)
---	---	---	---	---
	December 31, 2024		December 31, 2023
Right-of-use<br>assets:
Land, buildings and structures	~~W~~	853,393		971,929
Others		229,591		254,946
	~~W~~	1,082,984		1,226,875
2)	Details of amounts recognized in the separate statements of income for the years ended December 31, 2024<br>and 2023 as a lessee are as follows:
---	---
(In millions of won)
---	---	---	---	---
	2024		2023
Depreciation of<br>right-of-use assets:
Land, buildings and structures	~~W~~	285,555		281,187
Others(*)		76,981		77,314
	~~W~~	362,536		358,501
Interest expense on lease liabilities	~~W~~	34,754		31,824
(*)	Others include the amount reclassified as research and development expenses related to the lease contract for<br>research and development facilities.
---	---

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

3)	The total cash outflows due to lease payments for the years ended December 31, 2024 and 2023 amounted to<br>~~W~~377,162 million and ~~W~~386,268 million, respectively.

SK TELECOM CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

12.	Lease, Continued
(2)	Company as a lessor
---	---
1)	Finance lease
---	---

The Company recognized interest income of ~~W~~1,929 million and ~~W~~146 million for lease receivables for the years ended December 31, 2024 and 2023, respectively.

The following table sets out a maturity analysis of lease receivables, presenting the undiscounted lease payments to be received subsequent to December 31, 2024.

(In millions of won)
	Amount
Less than 1 year	~~W~~	2,499
1 ~ 2 years		15,327
2 ~ 3 years		17,313
3 ~ 4 years		17,832
4 ~ 5 years		18,367
More than 5 years		13,340
Undiscounted lease payments	~~W~~	84,678
Unrealized finance income		8,669
Net investment in the lease		76,009
2)	Operating lease
---	---

The Company recognized lease income of ~~W~~105,895 million and ~~W~~112,162 million for the years ended December 31, 2024 and 2023, respectively, of which variable lease payments received are ~~W~~5,040 million and ~~W~~6,389 million, respectively.

The following table sets out a maturity analysis of lease payments, presenting the undiscounted fixed payments to be received subsequent to December 31, 2024.

(In millions of won)
	Amount
Less than 1 year	~~W~~	45,669
1 ~ 2 years		3,038
2 ~ 3 years		738
3 ~ 4 years		189
4 ~ 5 years		113
More than 5 years		2,250
	~~W~~	51,997

SK TELECOM CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

13.	Goodwill

Goodwill as of December 31, 2024 and 2023 are as follows:

(In millions of won)
	December 31, 2024		December 31, 2023
Goodwill related to merger of Shinsegi Telecom, Inc.	~~W~~	1,306,236		1,306,236

The recoverable amount of the CGU is based on its value in use calculated by applying the post-tax annual discount rate of 5.2% (2023: 5.4%) (pre-tax annual discount rate for 2024 and 2023 : 7.0% and 8.4%) to the estimated future post-tax cash flows based on financial budgets for the next five years. An annual growth rate of 0.0% (2023: 0.0%) was applied for the cash flows expected to be incurred after five years and is not expected to exceed the Company’s long-term wireless telecommunication industry growth rate.

14.	Intangible Assets
(1)	Intangible assets as of December 31, 2024 and 2023 are as follows:
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---	---	---
	December 31, 2024
	Acquisition<br>cost		Accumulated<br>amortization			Accumulated<br>impairment loss			Carrying<br>amount
Frequency usage rights(*1)	~~W~~	3,564,907		(2,429,361	)		—			1,135,546
Land usage rights		32,979		(32,710	)		—			269
Industrial rights		53,218		(33,049	)		—			20,169
Facility usage rights		63,223		(50,368	)		—			12,855
Club memberships(*2)		58,198		—			(12,996	)		45,202
Other(*3)		3,937,738		(3,431,033	)		(37,728	)		468,977
	~~W~~	7,710,263		(5,976,521	)		(50,724	)		1,683,018
(In millions of won)
	December 31, 2023
	Acquisition<br>cost		Accumulatedamortization			Accumulatedimpairment loss			Carryingamount
Frequency usage rights(*1)	~~W~~	3,564,907		(1,958,301	)		—			1,606,606
Land usage rights		35,144		(34,602	)		—			542
Industrial rights		51,959		(33,169	)		—			18,790
Facility usage rights		61,553		(48,118	)		—			13,435
Club memberships(*2)		80,963		—			(21,962	)		59,001
Other(*3)		3,792,089		(3,239,634	)		—			552,455
	~~W~~	7,586,615		(5,313,824	)		(21,962	)		2,250,829

SK TELECOM CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

14.	Intangible Assets, Continued
(1)	Intangible assets as of December 31, 2024 and 2023 are as follows, Continued:
---	---
(*1)	The Company was reassigned 800 MHz, 1.8 GHz and 2.1 GHz band of frequency licenses from the Ministry of Science<br>and Information and Communication Technology (“ICT”) in exchange for ~~W~~227,200 million, ~~W~~547,800 million and<br>~~W~~411,700 million, respectively, for the year ended December 31, 2021. The band of frequency was assigned to the Company at the date of initial lump sum payment for the year ended December 31, 2021 and<br>the annual payments in installment for the remaining balances are made in the next five years starting from the date of initial lump sum payment.
---	---
(*2)	Club memberships are classified as intangible assets with indefinite useful lives and are not amortized.<br>
---	---
(*3)	Other intangible assets primarily consist of computer software and others.
---	---
(2)	Changes in intangible assets for the years ended December 31, 2024 and 2023 are as follows:<br>
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	2024
	Beginning<br>balance		Acquisition		Disposal			Transfer		Amortization			Impairment			Ending<br>balance
Frequency usage rights	~~W~~	1,606,606		—		—			—		(471,060	)		—			1,135,546
Land usage rights		542		60		(5	)		—		(328	)		—			269
Industrial rights		18,790		6,571		(240	)		—		(4,952	)		—			20,169
Facility usage rights		13,435		1,477		(4	)		619		(2,672	)		—			12,855
Club memberships		59,001		619		(14,418	)		—		—			—			45,202
Other		552,455		24,198		(1,482	)		147,108		(215,574	)		(37,728	)		468,977
	~~W~~	2,250,829		32,925		(16,149	)		147,727		(694,586	)		(37,728	)		1,683,018
(In millions of won)
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	2023
	Beginningbalance		Acquisition		Disposal			Transfer		Amortization			Ending<br>balance
Frequency usage rights	~~W~~	2,082,432		—		—			—		(475,826	)		1,606,606
Land usage rights		1,127		125		(15	)		40		(735	)		542
Industrial rights		19,112		4,549		(350	)		—		(4,521	)		18,790
Facility usage rights		13,245		1,884		(16	)		1,072		(2,750	)		13,435
Club memberships		56,897		3,595		(1,491	)		—		—			59,001
Other		520,587		57,306		(1,501	)		195,930		(219,867	)		552,455
	~~W~~	2,693,400		67,459		(3,373	)		197,042		(703,699	)		2,250,829

SK TELECOM CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

14.	Intangible Assets, Continued
(3)	Research and development expenditures recognized as expense for the years ended December 31, 2024 and 2023<br>are as follows:
---	---
(In millions of won)
---	---	---	---	---
	2024		2023
Research and development costs expensed as incurred	~~W~~	343,074		336,377
(4)	Details of frequency usage rights as of December 31, 2024 are as follows:
---	---
(In millions of won)
---	---	---	---	---	---
	Amount		Description	Commencement ofamortization	Completion ofamortization
800 MHz license	~~W~~	65,873	LTE service	Jul. 2021	Jun. 2026
1.8 GHz license		202,751	LTE service	Dec. 2021	Dec. 2026
2.6 GHz license		242,830	LTE service	Sept. 2016	Dec. 2026
2.1 GHz license		152,378	W-CDMA and LTE service	Dec. 2021	Dec. 2026
3.5 GHz license		471,714	5G service	Apr. 2019	Nov. 2028
	~~W~~	1,135,546

SK TELECOM CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

15.	Borrowings and Debentures
(1)	Long-term borrowings as of December 31, 2024 and 2023 are as follows:
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---	---
Lender	Annual interest<br>rate (%)		Maturity	December 31, 2024			December 31, 2023
Mizuho Bank, Ltd.		1.35	May. 20, 2024	~~W~~	—			100,000
DBS Bank Ltd.		1.32	May. 28, 2024		—			200,000
DBS Bank Ltd.		2.63	Mar. 10, 2025		200,000			200,000
Credit Agricole CIB		3.30	Apr. 29, 2024		—			50,000
Nonghyup Bank(*1)		MOR + 1.36	Nov. 17, 2024		—			40,000
Credit Agricole CIB		4.89	Nov. 28, 2025		50,000			50,000
DBS Bank Ltd.(*2)		3M CD + 0.075	Oct. 8, 2026		200,000			—
					450,000			640,000
Less current portions					(250,000	)		(390,000	)
				~~W~~	200,000			250,000
(*1)	6M MOR rates are 3.33% and 3.85% as of December 31, 2024 and 2023, respectively.
---	---
(*2)	3M CD rate is 3.41% as of December 31, 2024.
---	---

SK TELECOM CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

15.	Borrowings and Debentures, Continued
(2)	Debentures as of December 31, 2024 and 2023 are as follows:
---	---
(In millions of won and thousands of U.S. dollars)
---	---	---	---	---	---	---	---	---	---
	Purpose	Maturity		Annual<br>interest rate (%)		December 31,2024		December 31,2023
Unsecured corporate bonds	Operating fund		2032		3.45	~~W~~	90,000		90,000
Unsecured corporate bonds			2033		3.22		130,000		130,000
Unsecured corporate bonds			2024		3.64		—		150,000
Unsecured corporate bonds	Refinancing fund		2024		2.82		—		190,000
Unsecured corporate bonds	Operating and<br><br><br>Refinancing fund		2025		2.49		150,000		150,000
Unsecured corporate bonds	Operating fund		2030		2.61		50,000		50,000
Unsecured corporate bonds			2025		2.66		70,000		70,000
Unsecured corporate bonds			2030		2.82		90,000		90,000
Unsecured corporate bonds	Refinancing fund		2025		2.55		100,000		100,000
Unsecured corporate bonds			2035		2.75		70,000		70,000
Unsecured corporate bonds	Operating fund		2026		2.08		90,000		90,000
Unsecured corporate bonds			2036		2.24		80,000		80,000
Unsecured corporate bonds			2026		1.97		120,000		120,000
Unsecured corporate bonds			2031		2.17		50,000		50,000
Unsecured corporate bonds	Refinancing fund		2027		2.55		100,000		100,000
Unsecured corporate bonds	Operating and<br><br><br>Refinancing fund		2032		2.65		90,000		90,000
Unsecured corporate bonds	Refinancing fund		2027		2.84		100,000		100,000
Unsecured corporate bonds	Operating fund		2028		3.00		200,000		200,000
Unsecured corporate bonds			2038		3.02		90,000		90,000
Unsecured corporate bonds			2038		2.44		50,000		50,000
Unsecured corporate bonds			2024		2.09		—		120,000
Unsecured corporate bonds			2029		2.19		50,000		50,000
Unsecured corporate bonds			2039		2.23		50,000		50,000
Unsecured corporate bonds	Refinancing fund		2024		1.49		—		60,000
Unsecured corporate bonds	Operating and<br><br><br>Refinancing fund		2029		1.50		120,000		120,000
Unsecured corporate bonds	Refinancing fund		2039		1.52		50,000		50,000
Unsecured corporate bonds			2049		1.56		50,000		50,000
Unsecured corporate bonds	Operating fund		2024		1.76		—		70,000
Unsecured corporate bonds			2029		1.79		40,000		40,000
Unsecured corporate bonds			2039		1.81		60,000		60,000
Unsecured corporate bonds			2025		1.75		130,000		130,000
Unsecured corporate bonds			2030		1.83		50,000		50,000
Unsecured corporate bonds			2040		1.87		70,000		70,000
Unsecured corporate bonds	Refinancing fund		2025		1.40		140,000		140,000
Unsecured corporate bonds			2030		1.59		40,000		40,000
Unsecured corporate bonds			2040		1.76		110,000		110,000
Unsecured corporate bonds			2024		1.17		—		80,000
Unsecured corporate bonds			2026		1.39		80,000		80,000

SK TELECOM CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

15.	Borrowings and Debentures, Continued
(2)	Debentures as of December 31, 2024 and 2023 are as follows, Continued:
---	---
(In millions of won and thousands of U.S. dollars)
---	---	---	---	---	---	---	---	---	---	---	---
	Purpose	Maturity		Annualinterest rate (%)		December 31,<br>2024			December 31,2023
Unsecured corporate bonds	Refinancing fund		2031		1.80		50,000			50,000
Unsecured corporate bonds			2041		1.89		100,000			100,000
Unsecured corporate bonds			2024		2.47		—			90,000
Unsecured corporate bonds			2026		2.69		70,000			70,000
Unsecured corporate bonds			2041		2.68		40,000			40,000
Unsecured corporate bonds			2025		3.80		240,000			240,000
Unsecured corporate bonds			2027		3.84		70,000			70,000
Unsecured corporate bonds			2042		3.78		40,000			40,000
Unsecured corporate bonds			2025		4.00		300,000			300,000
Unsecured corporate bonds			2027		4.00		95,000			95,000
Unsecured corporate bonds			2024		4.79		—			100,000
Unsecured corporate bonds			2025		4.73		110,000			110,000
Unsecured corporate bonds			2027		4.74		60,000			60,000
Unsecured corporate bonds			2032		4.69		40,000			40,000
Unsecured corporate bonds			2026		3.65		110,000			110,000
Unsecured corporate bonds			2028		3.83		190,000			190,000
Unsecured corporate bonds			2026		3.72		80,000			80,000
Unsecured corporate bonds			2028		3.80		200,000			200,000
Unsecured corporate bonds			2030		3.96		70,000			70,000
Unsecured corporate bonds			2026		4.54		115,000			115,000
Unsecured corporate bonds			2028		4.68		100,000			100,000
Unsecured corporate bonds			2030		4.72		50,000			50,000
Unsecured corporate bonds			2033		4.72		30,000			30,000
Unsecured corporate bonds			2027		3.72		180,000			—
Unsecured corporate bonds			2029		3.73		110,000			—
Unsecured corporate bonds			2034		3.92		110,000			—
Unsecured corporate bonds			2027		2.91		170,000			—
Unsecured corporate bonds			2029		2.92		90,000			—
Unsecured corporate bonds			2034		2.96		40,000			—
Unsecured global bonds	Operating fund		2027		6.63		588,000<br> <br>(USD 400,000	)		515,760<br> <br>(USD 400,000	)
Floating rate notes(*)	Operating fund		2025		SOFR rate<br> <br>+1.17		441,000<br> <br>(USD 300,000	)		386,820<br> <br>(USD 300,000	)
							6,649,000			6,682,580
Less discounts on bonds							(13,806	)		(15,641	)
							6,635,194			6,666,939
Less current portions of bonds							(1,680,070	)		(859,516	)
						~~W~~	4,955,124			5,807,423
(*)	Interest rates applied are SOFR rate of 4.49% and 5.38% as of December 31, 2024 and 2023, respectively.<br>
---	---

SK TELECOM CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

16.	Long-Term Payables – Other
(1)	As of December 31, 2024 and 2023, details of long-term payables – other which consist of payables<br>related to the acquisition of frequency usage rights are as follows (See note 14):
---	---
(In millions of won)
---	---	---	---	---	---	---
	December 31, 2024			December 31, 2023
Long-term payables – other	~~W~~	921,075			1,290,225
Present value discount on long-term payables – other		(13,355	)		(29,772	)
Current portion of long-term payables – other		(367,765	)		(367,770	)
Carrying amount at year end	~~W~~	539,955			892,683
(2)	The sum of portions repaid among the principal of long-term payables – other for the years ended<br>December 31, 2024 and 2023 amounts to ~~W~~369,150 million and ~~W~~400,245 million, respectively. The repayment schedule of the principal amount of long-term payables – other as of December 31,<br>2024 is as follows:
---	---
(In millions of won)
---	---	---
	Amount
Less than 1 year	~~W~~	369,150
1 ~ 3 years		460,538
3 ~ 5 years		91,387
	~~W~~	921,075
17.	Provisions
---	---

Changes in provisions for the years ended December 31, 2024 and 2023 are as follows:

(In millions of won)	2024												As of December 31, 2024
	Beginningbalance		Increase		Utilization			Reversal			Endingbalance		Current		Non-current
Provision for restoration	~~W~~	100,282		4,718		(3,113	)		(810	)		101,077		40,682		60,395
Emission allowance		822		1,000		—			(1,794	)		28		28		—
	~~W~~	101,104		5,718		(3,113	)		(2,604	)		101,105		40,710		60,395
(In millions of won)	2023												As of December 31, 2023
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	Beginningbalance		Increase		Utilization			Reversal			Endingbalance		Current		Non-current
Provision for restoration	~~W~~	95,569		6,500		(1,787	)		—			100,282		30,491		69,791
Emission allowance		1,836		2,279		(520	)		(2,773	)		822		822		—
	~~W~~	97,405		8,779		(2,307	)		(2,773	)		101,104		31,313		69,791

SK TELECOM CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

18.	Defined Benefit Assets
(1)	Details of defined benefit assets as of December 31, 2024 and 2023 are as follows:
---	---
(In millions of won)
---	---	---	---	---	---	---
	December 31, 2024			December 31, 2023
Present value of defined benefit obligations	~~W~~	504,857			493,541
Fair value of plan assets		(608,375	)		(578,685	)
	~~W~~	(103,518	)		(85,144	)
(2)	Principal actuarial assumptions as of December 31, 2024 and 2023 are as follows:
---	---
	December 31, 2024			December 31, 2023
---	---	---	---	---	---	---
Discount rate for defined benefit obligations		3.81	%		4.36	%
Expected rate of salary increase		5.42	%		5.21	%

Discount rate for defined benefit obligation is determined based on market yields of high-quality corporate bonds with similar maturities for estimated payment term of defined benefit obligation. Expected rate of salary increase is determined based on the Company’s historical promotion index, inflation rate and salary increase ratio.

(3)	Changes in present value of defined benefit obligations for the years ended December 31, 2024 and 2023 are<br>as follows:
(In millions of won)
---	---	---	---	---	---	---
	2024			2023
Beginning balance	~~W~~	493,541			508,622
Current service cost		50,410			56,564
Interest cost		20,280			26,487
Remeasurement
- Demographic assumption		—			(740	)
- Financial assumption		21,642			(70,134	)
- Adjustment based on experience		(11,773	)		12,836
Benefit paid		(76,849	)		(38,347	)
Past service cost		6,795			—
Others(*)		811			(1,747	)
Ending balance	~~W~~	504,857			493,541
(*)	Others include changes in liabilities due to employees’ transfers among affiliates for the years ended<br>December 31, 2024 and 2023.
---	---

SK TELECOM CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

18.	Defined Benefit Assets, Continued
(4)	Changes in fair value of plan assets for the years ended December 31, 2024 and 2023 are as follows:<br>
---	---
(In millions of won)
---	---	---	---	---	---	---
	2024			2023
Beginning balance	~~W~~	578,685			539,847
Interest income		24,241			27,753
Remeasurement		2,039			94
Contribution		55,000			50,000
Benefit paid		(54,536	)		(36,124	)
Others(*)		2,946			(2,885	)
Ending balance	~~W~~	608,375			578,685
(*)	Others include changes in assets due to the employees’ transfers among affiliates for the years ended<br>December 31, 2024 and 2023.
---	---

The Company’s expected contributions to the defined benefit plan for the year ended December 31, 2025, amounts to ~~W~~122,586 million.

(5)	Total cost of defined benefit plan, which is recognized in profit or loss for the years ended December 31,<br>2024 and 2023 are as follows:
(In millions of won)
---	---	---	---	---	---	---
	2024			2023
Current service cost	~~W~~	50,410			56,564
Net interest income		(3,961	)		(1,266	)
Past service cost		6,795			—
	~~W~~	53,244			55,298

Costs related to the defined benefit plan except for the amounts transferred to construction in progress are included in labor expenses and research and development expenses.

(6)	Details of plan assets as of December 31, 2024 and 2023 are as follows:
(In millions of won)
---	---	---	---	---
	December 31, 2024		December 31, 2023
Equity instruments	~~W~~	43		65
Debt instruments		243,273		101,638
Short-term financial instruments, etc.		365,059		476,982
	~~W~~	608,375		578,685

SK TELECOM CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

18.	Defined Benefit Assets, Continued
(7)	Sensitivity analysis
---	---

As of December 31, 2024, effects on defined benefit obligations if each of significant actuarial assumptions changes within expectable and reasonable range are as follows:

(In millions of won)
	0.5% Increase			0.5% Decrease
Discount rate	~~W~~	(14,719	)		15,570
Expected salary increase rate		15,619			(14,902	)

The sensitivity analysis does not consider dispersion of all cash flows that are expected from the plan but provides approximate values of sensitivity for the assumptions used.

A weighted average duration of defined benefit obligations as of December 31, 2024 and 2023 are 6.22 years and 6.20 years, respectively.

(8)	Defined contribution plan

The amount recognized as an expense for defined contribution plans are ~~W~~12,337 million and ~~W~~8,698 million for the years ended December 31, 2024 and 2023, respectively.

SK TELECOM CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

19.	Derivative Instruments
(1)	Currency and interest rate swap contracts under cash flow hedge accounting as of December 31, 2024 are as<br>follows:
---	---
(In millions of won, thousands of foreign currencies)
---	---	---	---	---
Borrowing<br><br><br>date	Hedging Instrument (Hedged item)	Hedged risk	Financial institution	Duration of contract
Jul. 20, 2007	Fixed-to-fixed cross currency swap (U.S. dollar denominated bonds face value of USD 400,000)	Foreign currency risk	Morgan Stanley and four other banks	Jul. 20, 2007 ~ Jul. 20, 2027
Mar. 4, 2020	Floating-to-fixed cross currency interest rate swap (U.S. dollar denominated bonds face value of USD 300,000)	Foreign currency risk and interest rate risk	Citibank	Mar. 4, 2020 ~ Jun. 4, 2025
Oct. 7, 2024	Floating-to-fixed interest rate swap (Korean won borrowing amounting to KRW 200,000)	Interest rate risk	DBS Bank Ltd	Oct. 10, 2024 ~ Oct. 8, 2026
(2)	In relation to the business acquisition by SK Broadband Co., Ltd. during the year ended December 31, 2020,<br>the Parent Company has entered into a shareholders’ agreement with the shareholders of the acquirees on November 13, 2024. Pursuant to the shareholders’ agreement, the Company entered into a share purchase agreement to purchase 24.76%<br>of the shares of SK Broadband Co., Ltd. for ~~W~~1,145,870 million. The Company recognized a derivative financial liability of ~~W~~78,467 million and ~~W~~295,876 million for equity forward<br>contract as of December 31, 2024 and 2023, respectively.
---	---
(3)	The Company has entered into the agreement with HAEGIN Co., Ltd., whereby the Company has been granted<br>contingent subscription right to acquire HAEGIN Co., Ltd.’s common stock for the year ended December 31, 2022. The Company is able to exercise the right in accordance with the agreement when certain conditions are met. There is no balance<br>for derivative financial assets as of December 31, 2024.
---	---
(4)	SAPEON Inc., a subsidiary of the Company, disposed of a portion of shares of Rebellions Inc. (formerly, SAPEON<br>Korea Inc.) for the year ended December 31, 2024, and entered into a Price Return Swap (PRS) in which the buyer receives the difference between the amount of sale and the settlement amount when selling the shares. The Company recognized a<br>long-term derivative financial liability of ~~W~~2,689 million for the Price Return Swap (PRS) as of December 31, 2024.
---	---

SK TELECOM CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

19.	Derivative Instruments, Continued
(5)	The fair value of derivative financial instruments to which the Company applies cash flow hedging is recorded<br>in the separate financial statements as derivative financial assets, long-term derivative financial assets, and long-term derivative financial liabilities. As of December 31, 2024, details of fair values of the derivatives assets are as<br>follows:
---	---
(In millions of won, thousands of foreign currencies)
---	---	---	---	---	---	---
Hedging instrument (Hedged item)	Cash flow hedge			Fair value
Non-current assets:
Fixed-to-fixed<br>cross currency swap<br>(U.S. dollar denominated bonds face value of USD 400,000)	~~W~~	148,172			148,172
Current assets:
Floating-to-fixed<br>cross currency interest rate swap<br>(U.S. dollar denominated bonds face value of USD 300,000)	~~W~~	80,650			80,650
	~~W~~	228,822			228,822
Non-current liabilities:
Floating-to-fixed<br>interest rate swap<br>(Korean won borrowing amounting to KRW 200,000)	~~W~~	(748	)		(748	)
	~~W~~	(748	)		(748	)

As of December 31, 2024, the changes in fair value of derivatives designated as hedging instrument, which are all effective in hedging, were recognized in full in other comprehensive income.

(6)	The fair value of derivatives held for trading is recorded in the financial statements as derivative financial<br>liabilities and long-term derivative financial liabilities. As of December 31, 2024, details of fair values of the derivative liabilities are as follows:
(In millions of won)
---	---	---	---	---	---	---
	Held for trading			Fair value
Current liabilities:
Equity forward contract	~~W~~	(78,467	)		(78,467	)
Non-current liabilities:
Price Return Swap (PRS)	~~W~~	(2,689	)		(2,689	)
	~~W~~	(81,156	)		(81,156	)

SK TELECOM CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

20.	Share Capital and Capital Surplus and Others
(1)	Details of share capital as of December 31, 2024 and 2023 are as follows:
---	---
(In millions of won, except for share data)
---	---	---	---	---
	December 31, 2024		December 31, 2023
Number of authorized shares		670,000,000		670,000,000
Par value (in won)	~~W~~	100		100
Number of issued shares		214,790,053		218,833,144
Share capital:
Common share(*)	~~W~~	30,493		30,493
(*)	In 2002, 2003 and 2024, the Company retired treasury shares with reduction of its retained earnings before<br>appropriation. As a result, the Company’s issued shares have decreased without change in share capital.
---	---
(2)	Changes in issued shares for the years ended December 31, 2024 and 2023 are as follows:<br>
---	---
(In shares)
---	---	---	---	---	---
	2024			2023
Issued shares as of January 1		218,833,144			218,833,144
Retirement of treasury shares(*)		(4,043,091	)		—
Issued shares as of December 31		214,790,053			218,833,144
(*)	The Company retired 4,043,091 treasury shares with reduction of its retained earnings before appropriation for<br>the year ended December 31, 2024.
---	---
(3)	Details of shares outstanding as of December 31, 2024 and 2023 are as follows:
---	---
(In shares)
---	---	---	---	---	---	---	---	---	---	---	---	---
	December 31, 2024						December 31, 2023
	Issued shares		Treasury<br>shares		Outstanding<br>shares		Issued shares		Treasury<br>shares		Outstanding<br>shares
Shares outstanding		214,790,053		1,903,711		212,886,342		218,833,144		6,133,414		212,699,730
(4)	Details of capital surplus and others as of December 31, 2024 and 2023 are as follows:<br>
---	---
(In millions of won)
---	---	---	---	---	---	---
	December 31, 2024			December 31, 2023
Paid-in surplus	~~W~~	1,771,000			1,771,000
Treasury shares(Note 21)		(92,962	)		(301,981	)
Hybrid bonds(Note 22)		398,509			398,509
Share option(Note 23)		14,498			9,818
Others(*)		(6,642,865	)		(6,643,493	)
	~~W~~	(4,551,820)			(4,766,147	)
(*)	The amount includes a change in equity amounting to ~~W~~5,767,210 million<br>due to the spin-off that was accounted for as a transaction under common control.
---	---

SK TELECOM CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

21.	Treasury Shares
(1)	Treasury shares as of December 31, 2024 and 2023 are as follows:
---	---
(In millions of won, except for the number of shares)
---	---	---	---	---
	December 31, 2024		December 31, 2023
Number of shares		1,903,711		6,133,414
Acquisition cost	~~W~~	92,962		301,981
(2)	Changes in treasury shares for the years ended December 31, 2024 and 2023 are as<br>follows:
---	---
(In shares)
---	---	---	---	---	---	---
	2024			2023
Treasury shares as of January 1		6,133,414			801,091
Acquisition(*1)		317,000			5,773,410
Disposal(*2)		(503,612	)		(441,087	)
Retirement of treasury shares(*3)		(4,043,091	)		—
Treasury shares as of December 31		1,903,711			6,133,414
(*1)	The Company acquired 317,000 of its treasury shares for ~~W~~15,788 million and 5,773,410 of<br>its treasury shares for ~~W~~285,487 million in an effort to increase shareholder value by stabilizing its stock price for the years ended December 31, 2024 and 2023, respectively.
---	---
(*2)	The Company distributed 503,612 treasury shares (acquisition cost: ~~W~~24,807 million) as bonus<br>payment to the employees, resulting in gain on disposal of treasury shares of ~~W~~181 million for the year ended December 31, 2024. Also, the Company distributed 441,087 treasury shares (acquisition cost:<br>~~W~~20,208 million) as bonus payment to the employees, resulting in gain on disposal of treasury shares of ~~W~~212 million for the year ended December 31, 2023.
---	---
(*3)	The Company retired 4,043,091 treasury shares with reduction of its retained earnings before appropriation, as<br>a result, the Company’s issued shares have decreased without change in share capital for the year ended December 31, 2024.
---	---

SK TELECOM CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

22.	Hybrid Bonds

Hybrid bonds classified as equity as of December 31, 2024 and 2023 are as follows:

(In millions of won)
	Type		Issuance date		*Maturity(1)**		Annual interest<br>*rate(%)(2)**		December 31,<br>2024			December 31,<br>2023
Series 3 hybrid bonds		Unsecured<br>subordinated<br> <br>bearer bond		June 5, 2023		June 5, 2083		4.95	~~W~~	400,000			400,000
Issuance costs										(1,491	)		(1,491	)
									~~W~~	398,509			398,509

The Company redeemed previously issued hybrid bonds and issued new hybrids bonds for the year ended December 31, 2023. As there is no contractual obligation to deliver financial assets to the holders of hybrid bonds, the Company classified the hybrid bonds as equity.

These are subordinated bonds that rank before common shares in the event of a liquidation or reorganization of the Company.

(*1)	The Company has a right to extend the maturity without any notice or announcement.
(*2)	Annual interest rate is determined as yield rate of 5-year national<br>bond plus premium. According to the step-up clause, additional premium of 0.25% and 0.75%, respectively, after 10 years and 25 years from the issuance date are applied.
---	---

SK TELECOM CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

23.	Share-Based Payment Arrangement
(1)	The terms and conditions related to the grants of the share-based payment arrangement are as follows:<br>
---	---
1)	Share-based payment arrangement with cash alternatives
---	---
	Series
---	---	---	---	---	---
	5	6		*7-1()**	*7-2()**
Grant date	March 26, 2020		March 25, 2021	March 25, 2022
Types of shares to be issued	Registered common shares
Grant method	Reissue of treasury shares, Cash settlement
Number of shares (in share)	370,355		71,726	98,425	96,820
Exercise price (in won)	38,452		50,276	56,860	56,860
Exercise period	Mar. 27, 2023<br>~<br>Mar. 26, 2027		Mar. 26, 2023<br>~<br>Mar. 25, 2026	Mar. 26, 2025<br>~<br>Mar. 25, 2029	Mar. 26, 2024<br>~<br>Mar. 25, 2027
Vesting conditions	3 years’ service<br>from the grant<br>date		2 years’ service<br>from the grant<br>date	2 years’ service<br>from the grant<br>date	2 years’ service<br>from the grant<br>date
(*)	For the year ended December 31, 2024, 196,850 shares of stock options granted in the 7^th^ -1 series and 12,884 shares of stock options granted in the 7^th^ -2 series were canceled.<br>
---	---

For the year ended December 31, 2024, the entire amount of remaining stock options granted in the 4^th^ series and some portions of stock options granted in the 3^rd^,^^5^th^, and 6^th^ series were exercised, and the entire amount of remaining stock options granted in the 1^st^ -3^^and 3^rd^ series was fully forfeited.

2)	Cash-settled share-based payment arrangement
	Granted in 2022
---	---
	Share appreciation rights of<br>SK Telecom Co., Ltd.
Grant date	January 1, 2022
Grant method	Cash settlement
Number of shares (in share)	338,525
Exercise price (in won)	56,860
Exercise period	Jan. 1, 2024 ~ Mar. 25, 2025
Vesting conditions	2 years’ service from the<br>grant date

The entire amount of remaining share appreciation rights for shares of SK Telecom Co., Ltd. and SK Square Co., Ltd. granted in 2021 was fully exercised for the year ended December 31, 2024.

SK TELECOM CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

23.	Share-Based Payment Arrangement, Continued
(1)	The terms and conditions related to the grants of the share-based payment arrangement are as follows,<br>Continued:
---	---
3)	Equity-settled share-based payment arrangement
---	---

The Company newly established Performance Share Units (“PSU”) for executives of the Company and major subsidiaries as part of the compensation based on the growth of corporate value for the year ended December 31, 2024 and for the year ended December 31, 2023, and the details are as follows:

	PSU of SK Telecom Co., Ltd.
Grant date	March 28, 2023	March 26, 2024
Types of shares to be issued	Registered common shares
Grant method	Reissue of treasury shares
Number of shares(*)	Fluctuates according to the share price on the expiration date and the cumulative increase rate of KOSPI200
Reference share price (in won)	47,280	52,720
Reference index (KOSPI200)	315	362
Maturity (exercise date)	The day in which the annual general meeting of shareholders is held after 3 years from the grant date
Vesting conditions	Full service in the year in which the grant date is included
(*)	The initial amount granted is a total of ~~W~~10,813 million for 2023 and<br>~~W~~12,835 million for 2024, and the amount calculated according to the adjustment rate based on the share price on the expiration date and the cumulative increase rate of KOSPI200 will be paid in shares.
---	---
(2)	Share compensation expense for share-based payment arrangements with cash alternatives recognized for the year<br>ended December 31, 2024 and the remaining share compensation expense to be recognized in subsequent periods are as follows:
---	---
(In millions of won)	Share<br>compensation expense
---	---	---
As of December 31, 2023	~~W~~	157,750
For the year ended December 31, 2024		846
In subsequent periods		—
	~~W~~	158,596

The liabilities recognized by the Company in relation to the share-based payment arrangement with cash alternatives are ~~W~~7,283 million and ~~W~~5,530 million, respectively, which are included in accrued expenses as of December 31, 2024 and 2023, respectively.

As of December 31, 2024 and 2023 the carrying amounts of liabilities recognized by the Company in relation to the cash-settled share-based payment arrangement are ~~W~~305 million and ~~W~~1,133 million, respectively.

Share compensation expenses recognized for equity-settled share-based payment arrangement are ~~W~~4,549 million and 4,653 million for the years ended December 31, 2024 and 2023, respectively.

SK TELECOM CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

23.	Share-Based Payment Arrangement, Continued
(3)	The Company used option-pricing models, including the binomial model, on the measurement of the fair value of<br>share options at the remeasurement date and the inputs used in the model are as follows:
---	---
1)	Share-based payment arrangement with cash alternatives
---	---
(i)	SK Telecom Co., Ltd.
---	---
(In won)	Series
---	---	---	---	---	---	---	---	---	---	---	---	---
	5			6			7-1			7-2
Risk-free interest rate		2.74	%		2.73	%		2.81	%		2.74	%
Estimated option’s life		7 years			5 years			7 years			5 years
Share price on the remeasurement date		55,200			55,200			55,200			55,200
Expected volatility		16.50	%		16.50	%		16.50	%		16.50	%
Expected dividends yield		6.41	%		6.41	%		6.41	%		6.41	%
Exercise price		38,452			50,276			56,860			56,860
Per-share fair value of the option		16,748			5,668			3,820			3,080
(ii)	SK Square Co., Ltd.
---	---
(In won)	Series
---	---	---	---	---	---	---
	5			6
Risk-free interest rate		1.52	%		1.55	%
Estimated option’s life		7 years			5 years
Share price (Closing price on the preceding day)		34,900			49,800
Expected volatility		8.10	%		25.70	%
Expected dividends yield		5.70	%		4.00	%
Exercise price		38,452			50,276
Per-share fair value of the option		192			8,142

SK TELECOM CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

23.	Share-Based Payment Arrangement, Continued
(3)	The Company used option-pricing models, including the binomial model, on the measurement of the fair value of<br>share options at the remeasurement date and the inputs used in the model are as follows, Continued:
---	---
2)	Cash-settled share-based payment arrangement
---	---
(In won)	Granted in 2022
---	---	---	---
	Share appreciation rights of<br>SK Telecom Co., Ltd.
Risk-free interest rate		2.87	%
Estimated option’s life		3.25 years
Share price on the remeasurement date		55,200
Expected volatility		16.50	%
Expected dividends yield		6.41	%
Exercise price		56,860
Per-share fair value of the option		902
3)	Equity-settled share-based payment arrangement
---	---
(In won)	Granted in 2023<br>PSU of SK Telecom Co., Ltd.			Granted in 2024<br>PSU of SK Telecom Co., Ltd.
---	---	---	---	---	---	---
Risk-free interest rate		3.26	%		3.30	%
Estimated option’s life		3 years			3 years
Share price on the grant date		48,500			54,100
Expected volatility		18.67	%		15.90	%
Expected dividends yield		4.90	%		5.40	%
Per-share fair value of the option		27,525			25,920

SK TELECOM CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

24.	Retained Earnings
(1)	Retained earnings as of December 31, 2024 and 2023 are as follows:
---	---
(In millions of won)
---	---	---	---	---
	December 31, 2024		December 31, 2023
Appropriated:
Legal reserve	~~W~~	22,320		22,320
Reserve for business expansion		9,981,138		9,831,138
Reserve for technology development		4,715,300		4,565,300
		14,696,438		14,396,438
Unappropriated		554,693		613,715
	~~W~~	15,273,451		15,032,473
(2)	Legal reserve
---	---

The Korean Commercial Act requires the Company to appropriate as a legal reserve at least 10% of cash dividends paid for each accounting period until the reserve equals 50% of outstanding share capital. The legal reserve may not be utilized for cash dividends, but may only be used to offset a future deficit, if any, or may be transferred to share capital.

SK TELECOM CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

25.	Statements of Appropriation of Retained Earnings

Details of statements of appropriation of retained earnings for the years ended December 31, 2024 and 2023 are as follows:

Date of appropriation for 2024: March 26, 2025

Date of appropriation for 2023: March 26, 2024

(In millions of won)
	2024			2023
Unappropriated retained earnings:
Unappropriated retained earnings	~~W~~	90,380			91,736
Remeasurement of defined benefit assets		(5,771	)		43,656
Reclassification of valuation loss on FVOCI		(60,518	)		(21,862	)
Retirement of treasury shares		(200,000	)		—
Interim dividends:<br><br><br>2024: ~~W~~2,490 per share,<br><br><br>2,490% on par value<br><br><br>2023: ~~W~~2,490 per share,<br><br><br>2,490% on par value		(530,082	)		(542,282	)
Interest on hybrid bonds		(19,800	)		(17,283	)
Profit for the year		1,280,484			1,059,750
		554,693			613,715
Reversal of appropriation of retained earnings:
Reserve for business expansion		(150,000	)		(150,000	)
Reserve for technology development		(150,000	)		(150,000	)
Appropriation of retained earnings:
Cash dividends:<br><br><br>2024: ~~W~~ 1,050 per share,<br><br><br>1,050% on par value<br><br><br>2023: ~~W~~1,050 per share,<br><br><br>1,050% on par value		223,531			223,335
		(523,531	)		(523,335	)
Unappropriated retained earnings to be carried over to subsequent year	~~W~~	31,162			90,380

SK TELECOM CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

26.	Reserves
(1)	Details of reserves, net of taxes, as of December 31, 2024 and 2023 are as follows:
---	---
(In millions of won)
---	---	---	---	---	---	---
	December 31, 2024			December 31, 2023
Valuation gain on FVOCI	~~W~~	213,725			139,548
Valuation loss on derivatives		(4,995	)		(274	)
	~~W~~	208,730			139,274
(2)	Changes in reserves for the years ended December 31, 2024 and 2023 are as follows:
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---	---
	Valuation gain (loss)<br>on financial assets<br>at FVOCI			Valuation gain<br>(loss) on derivatives			Total
Balance as of January 1, 2023	~~W~~	156,907			11,214			168,121
Changes, net of taxes		(17,359	)		(11,488	)		(28,847	)
Balance as of December 31, 2023		139,548			(274	)		139,274
Balance as of January 1, 2024		139,548			(274	)		139,274
Changes, net of taxes		74,177			(4,721	)		69,456
Balance as of December 31, 2024	~~W~~	213,725			(4,995	)		208,730
(3)	Changes in valuation gain (loss) on financial assets at FVOCI for the years ended December 31, 2024 and<br>2023 are as follows:
---	---
(In millions of won)
---	---	---	---	---	---
	2024		2023
Balance as of January 1	~~W~~	139,548		156,907
Amount recognized as other comprehensive income (loss) for the year, net of taxes		13,659		(39,221	)
Amount reclassified to retained earnings, net of taxes		60,518		21,862
Balance as of December 31	~~W~~	213,725		139,548
(4)	Changes in valuation gain (loss) on derivatives for the years ended December 31, 2024 and 2023 are as<br>follows:
---	---
(In millions of won)
---	---	---	---	---	---	---
	2024			2023
Balance as of January 1	~~W~~	(274	)		11,214
Amount recognized as other comprehensive loss for the year, net of taxes		(10,801	)		(14,262	)
Amount reclassified to profit, net of taxes		6,080			2,774
Balance as of December 31	~~W~~	(4,995	)		(274	)

SK TELECOM CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

27.	Operating Revenue

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

(In millions of won)
	2024		2023
Products transferred at a point in time:
Product sales	~~W~~	163,901		115,062
Services transferred over time:
Wireless service revenue(*1)		10,671,222		10,554,390
Cellular interconnection revenue		413,855		445,244
Other(*2)		1,525,082		1,474,524
		12,610,159		12,474,158
	~~W~~	12,774,060		12,589,220
(*1)	Wireless service revenue includes revenue from wireless voice and data transmission services, which is<br>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 receive consideration from a customer in an amount that corresponds directly with the value of telecommunications service provided; thus, the Company applies practical expedient method and 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.

28.	Other Operating Expenses

Details of other operating expenses for the years ended December 31, 2024 and 2023 are as follows:

(In millions of won)
	2024		2023
Communication	~~W~~	26,735		26,827
Utilities		400,612		377,028
Taxes and dues		29,676		23,229
Repair		272,723		257,829
Research and development		343,074		336,377
Training		22,431		28,771
Bad debt for accounts receivable – trade		33,085		28,765
Supplies and others		45,715		51,372
	~~W~~	1,174,051		1,130,198

SK TELECOM CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

29.	Other Non-Operating Income and Expenses

Details of other non-operating income and expenses for the years ended December 31, 2024 and 2023 are as follows:

(In millions of won)
	2024		2023
Other non-operating income:
Gain on disposal of property and equipment and intangible assets	~~W~~	33,438		20,825
Others		18,417		20,019
	~~W~~	51,855		40,844
Other non-operating expenses:
Loss on disposal of property and equipment and intangible assets	~~W~~	14,301		3,929
Impairment loss on property and equipment and intangible assets		49,622		—
Donations		14,740		12,966
Bad debt for accounts receivable – other		4,157		4,349
Others		58,658		2,775
	~~W~~	141,478		24,019

SK TELECOM CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

30.	Finance Income and Costs
(1)	Details of finance income and costs for the years ended December 31, 2024 and 2023 are as follows:<br>
---	---
(In millions of won)	2024		2023
---	---	---	---	---
Finance income:
Interest income	~~W~~	43,168		36,937
Dividends		216,886		209,195
Gain on foreign currency transactions		11,678		9,015
Gain on foreign currency translations		2,536		300
Gain relating to financial instruments at FVTPL		239,616		87,199
	~~W~~	513,884		342,646
(In millions of won)	2024		2023
---	---	---	---	---
Finance costs:
Interest expense	~~W~~	315,794		325,769
Loss on sale of accounts receivable – other		35,317		65,027
Loss on foreign currency transactions		12,992		8,115
Loss on foreign currency translations		1,392		660
Loss relating to financial instruments at FVTPL		120,040		41,819
	~~W~~	485,535		441,390
(2)	Details of interest income included in finance income for the years ended December 31, 2024 and 2023 are<br>as follows:
---	---
(In millions of won)	2024		2023
---	---	---	---	---
Interest income on cash equivalents and short-term financial instruments	~~W~~	23,792		18,484
Interest income on loans and others		19,376		18,453
	~~W~~	43,168		36,937

SK TELECOM CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

30.	Finance Income and Costs, Continued
(3)	Details of interest expenses included in finance costs for the years ended December 31, 2024 and 2023 are<br>as follows:
---	---
(In millions of won)	2024		2023
---	---	---	---	---
Interest expense on borrowings	~~W~~	16,577		27,151
Interest expense on debentures		215,705		200,571
Others		83,512		98,047
	~~W~~	315,794		325,769
(4)	Finance income and costs by category of financial instruments for the years ended December 31, 2024 and<br>2023 are as follows. Bad debt expense for accounts receivable – trade, loans and receivables are presented and explained separately in notes 5 and 35.
---	---
1)	Finance income and costs
---	---
(In millions of won)	2024
---	---	---	---	---
	*Finance income()**		Finance costs
Financial assets:
Financial assets at FVTPL	~~W~~	40,804		39,765
Financial assets at FVOCI		30,993		—
Financial assets at amortized cost		43,593		5,116
		115,390		44,881
Financial liabilities:
Financial liabilities at FVTPL		217,408		115,592
Financial liabilities at amortized cost		4		325,062
		217,412		440,654
	~~W~~	332,802		485,535
(*)	Finance income does not include ~~W~~181,082 million of dividends received from subsidiaries<br>and associates for the year ended December 31, 2024.
---	---

SK TELECOM CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

30.	Finance Income and Costs, Continued
(4)	Finance income and costs by category of financial instruments for the years ended December 31, 2024 and<br>2023 are as follows. Bad debt expense (reversal of loss allowance) for accounts receivable – trade, loans and receivables are presented and explained separately in notes 5 and 35, Continued:
---	---
1)	Finance income and costs, Continued
---	---
(In millions of won)
---	---	---	---	---
	2023
	*Finance income()**		Finance costs
Financial assets:
Financial assets at FVTPL	~~W~~	87,758		106,846
Financial assets at FVOCI		39,681		—
Financial assets at amortized cost		36,299		8,726
Derivatives designated as hedging instrument		2,343		—
		166,081		115,572
Financial liabilities:
Financial liabilities at FVTPL		6,717		—
Financial liabilities at amortized cost		1,503		325,818
		8,220		325,818
	~~W~~	174,301		441,390
(*)	Finance income does not include ~~W~~168,345 million of dividends received from subsidiaries<br>and associates for the year ended December 31, 2023.
---	---
2)	Other comprehensive income (loss)
---	---
(In millions of won)
---	---	---	---	---	---	---
	2024			2023
Financial assets:
Financial assets at FVOCI	~~W~~	13,659			(39,221	)
Derivatives designated as hedging instrument		(4,721	)		(11,488	)
	~~W~~	8,938			(50,709	)
(5)	Details of impairment losses for financial assets for the years ended December 31, 2024 and 2023 are as<br>follows:
---	---
(In millions of won)
---	---	---	---	---
	2024		2023
Accounts receivable – trade	~~W~~	33,085		28,765
Other receivables		4,157		4,349
	~~W~~	37,242		33,114

SK TELECOM CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

31.	Income Tax Expense
(1)	Income tax expenses for the years ended December 31, 2024 and 2023 consist of the following:<br>
---	---
(In millions of won)
---	---	---	---	---	---	---
	2024			2023
Current tax expense:
Current year	~~W~~	304,365			249,527
Current tax of prior years		(21,577	)		(4,247	)
		282,788			245,280
Deferred tax expense:
Changes in net deferred tax assets		(86,188	)		49,909
Income tax expense	~~W~~	196,600			295,189
(2)	The difference between income taxes computed using the statutory corporate income tax rates and the recorded<br>income taxes for the years ended December 31, 2024 and 2023 is attributable to the following:
---	---
(In millions of won)
---	---	---	---	---	---	---
	2024			2023
Profit before income tax	~~W~~	1,477,084			1,354,939
Income taxes at statutory income tax rate		379,588			347,342
Non-taxable income		(46,304	)		(37,230	)
Non-deductible expenses		9,594			13,071
Tax credit and tax reduction		(20,538	)		(51,843	)
Changes in unrecognized deferred taxes		(87,136	)		25,671
Income tax refund		(21,577	)		(4,247	)
Changes in tax rate and other		(17,027	)		2,425
Income tax expense	~~W~~	196,600			295,189
(3)	Deferred taxes directly charged to (credited from) equity for the years ended December 31, 2024 and 2023<br>are as follows:
---	---
(In millions of won)
---	---	---	---	---	---	---
	2024			2023
Valuation gain (loss) on financial assets measured at fair value	~~W~~	(4,828	)		12,922
Valuation gain on derivatives		1,342			3,843
Remeasurement of defined benefit assets		2,061			(14,477	)
Loss on disposal of treasury shares		(46	)		(53	)
	~~W~~	(1,471	)		2,235

SK TELECOM CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

31.	Income Tax Expense, Continued
(4)	Changes in deferred tax assets (liabilities) for the years ended December 31, 2024 and 2023 are as<br>follows:
---	---
(In millions of won)	2024
---	---	---	---	---	---	---	---	---	---	---	---	---
	Beginning			Deferred tax<br>expense<br>(income)			Directly<br>charged to<br>(credited from)<br>equity			Ending
Deferred tax assets (liabilities) related to temporary differences:
Loss allowance	~~W~~	43,576			218			—			43,794
Accrued interest income		(255	)		(312	)		—			(567	)
Financial assets measured at fair value		(5,321	)		(32,179	)		(4,828	)		(42,328	)
Investments in subsidiaries, associates and joint ventures		(15,730	)		54,400			—			38,670
Property and equipment		(398,779	)		(7,313	)		—			(406,092	)
Retirement benefit obligation		(11,851	)		18,590			2,061			8,800
Valuation gain on derivatives		24,099			2,148			1,342			27,589
Gain (loss) on foreign currency **** translation		20,658			(297	)		—			20,361
Incremental costs to acquire a contract		(673,580	)		5,962			—			(667,618	)
Right-of-use<br>assets		(308,716	)		35,278			—			(273,438	)
Lease liabilities		308,633			(16,140	)		—			292,493
Others		73,546			45,025			(46	)		118,525
	~~W~~	(943,720	)		105,380			(1,471	)		(839,811	)
Tax credit		141,725			(19,192	)		—			122,533
	~~W~~	(801,995	)		86,188			(1,471	)		(717,278	)

SK TELECOM CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

31.	Income Tax Expense, Continued
(4)	Changes in deferred tax assets (liabilities) for the years ended December 31, 2024 and 2023 are as<br>follows, Continued:
---	---
(In millions of won)	2023
---	---	---	---	---	---	---	---	---	---	---	---	---
	Beginning			Deferred tax<br>expense<br>(income)			Directly<br>charged to<br>(credited from)<br>equity			Ending
Deferred tax assets (liabilities) related to temporary differences:
Loss allowance	~~W~~	43,512			64			—			43,576
Accrued interest income		(293	)		38			—			(255	)
Financial assets measured at fair value		(12,930	)		(5,313	)		12,922			(5,321	)
Investments in subsidiaries, associates and joint ventures		5,034			(20,764	)		—			(15,730	)
Property and equipment		(345,754	)		(53,025	)		—			(398,779	)
Retirement benefit obligation		2,919			(293	)		(14,477	)		(11,851	)
Valuation gain on derivatives		18,112			2,144			3,843			24,099
Gain (loss) on foreign currency **** translation		20,624			34			—			20,658
Incremental costs to acquire a contract		(707,002	)		33,422			—			(673,580	)
Right-of-use<br>assets		(344,023	)		35,307			—			(308,716	)
Lease liabilities		345,739			(37,106	)		—			308,633
Others		129,858			(56,259	)		(53	)		73,546
	~~W~~	(844,204	)		(101,751	)		2,235			(943,720	)
Tax credit		89,883			51,842			—			141,725
	~~W~~	(754,321	)		(49,909	)		2,235			(801,995	)
(5)	Details of temporary differences not recognized as deferred tax assets in the statements of financial position<br>as of December 31, 2024 and 2023 are as follows:
---	---
(In millions of won)
---	---	---	---	---
	December 31, 2024		December 31, 2023
Loss allowance	~~W~~	77,405		77,405
Investments in subsidiaries, associates and joint ventures		508,873		585,877
Other temporary differences		102,850		372,134
(6)	In accordance with the global minimum tax law (Pillar Two) which was applied from 2024, the Company, as the<br>Parent Company, is required to pay additional taxes on the difference between the effective tax rate of each company in the Group in their respective jurisdictions and the minimum tax rate of 15%. The Company has determined that no additional taxes<br>will be incurred under the global minimum tax law (Pillar Two), and therefore, there is no amount recognized as income tax expense for the year ended December 31, 2024.
---	---

SK TELECOM CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

32.	Earnings per Share

Earnings per share is calculated to profit of the Company per common share and dilutive potential common share, and details are as follows:

(1)	Basic earnings per share
1)	Basic earnings per share for the years ended December 31, 2024 and 2023 are calculated as follows:<br>
---	---
(In millions of won, except for share data and basic earnings per share)
---	---	---	---	---	---	---
	2024			2023
Profit for the year	~~W~~	1,280,484			1,059,750
Interest on hybrid bonds		(19,800	)		(17,283	)
Profit for the year on common shares		1,260,684			1,042,467
Weighted average number of common shares outstanding		212,848,138			217,264,615
Basic earnings per share (in won)	~~W~~	5,923			4,798
2)	The weighted average number of common shares outstanding for the years ended December 31, 2024 and 2023<br>are calculated as follows:
---	---
(In shares)	2024
---	---	---	---	---	---	---
	Number of common shares			Weighted average number of<br>common shares
Issued shares as of January 1, 2024		218,833,144			218,833,144
Treasury shares as of January 1, 2024		(6,133,414	)		(6,133,414	)
Acquisition of treasury shares		(317,000	)		(315,314	)
Disposal of treasury shares		503,612			463,722
		212,886,342			212,848,138
(In shares)	2023
---	---	---	---	---	---	---
	Number of common shares			Weighted average number of<br>common shares
Issued shares as of January 1, 2023		218,833,144			218,833,144
Treasury shares as of January 1, 2023		(801,091	)		(801,091	)
Acquisition of treasury shares		(5,773,410	)		(1,154,633	)
Disposal of treasury shares		441,087			387,195
		212,699,730			217,264,615

SK TELECOM CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

32.	Earnings per Share, Continued
(2)	Diluted earnings per share
---	---
1)	Diluted earnings per share for the years ended December 31, 2024 and 2023 are calculated as follows:<br>
---	---
(In millions of won, except for share data and diluted earnings per share)
---	---	---	---	---
	2024		2023
Profit for the year on common shares	~~W~~	1,260,684		1,042,467
Adjusted weighted average number of common shares outstanding		213,428,916		217,452,721
Diluted earnings per share (in won)	~~W~~	5,907		4,794
2)	The adjusted weighted average number of common shares outstanding for the years ended December 31, 2024<br>and 2023 are calculated as follows:
---	---
(In shares)
---	---	---	---	---	---
	2024		2023
Outstanding shares as of January 1		212,699,730		218,032,053
Effect of treasury shares		148,408		(767,438	)
Effect of share option		580,778		188,106
Adjusted weighted average number of common shares outstanding		213,428,916		217,452,721

SK TELECOM CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

33.	Dividends
(1)	Details of dividends declared
---	---

Details of dividend declared for the years ended December 31, 2024 and 2023 are as follows:

(In millions of won, except for face value and share data)
Year	Dividend type	Number of shares<br>outstanding		Face value<br>(in won)		Dividend ratio			Dividends
2024	Cash dividends (Interim)		212,880,865		100		830	%	~~W~~	176,690
	Cash dividends (Interim)		212,886,342		100		830	%		176,696
	Cash dividends (Interim)		212,886,342		100		830	%		176,696
	Cash dividends (Year-end)		212,886,342		100		1,050	%		223,531
									~~W~~	753,613
2023	Cash dividends (Interim)		218,466,141		100		830	%	~~W~~	181,327
	Cash dividends (Interim)		218,473,140		100		830	%		181,333
	Cash dividends (Interim)		216,412,898		100		830	%		179,623
	Cash dividends (Year-end)		212,699,730		100		1,050	%		223,335
									~~W~~765,618
(2)	Dividends yield ratio
---	---

Dividends yield ratios for the years ended December 31, 2024 and 2023 are as follows:

(In won)
Year	Dividend type	Dividend per share		Closing price<br>at year-end		Dividend yield<br>ratio
2024	Cash dividends		3,540		55,200		6.41	%
2023	Cash dividends		3,540		50,100		7.07	%

SK TELECOM CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

34.	Categories of Financial Instruments
(1)	Financial assets by category as of December 31, 2024 and 2023 are as follows:
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---	---	---
	December 31, 2024
	Financial<br>assets at<br>FVTPL		Equity<br>instruments at<br>FVOCI		Financial assets at<br>amortized cost		Derivatives<br>hedging<br>instrument		Total
Cash and cash equivalents	~~W~~	—		—		1,165,158		—		1,165,158
Financial instruments		—		—		79,354		—		79,354
Long-term investment securities(*)		75,563		1,342,902		—		—		1,418,465
Accounts receivable – trade		—		—		1,508,893		—		1,508,893
Loans and other receivables		223,761		—		616,521		—		840,282
Derivative financial assets		—		—		—		228,822		228,822
	~~W~~	299,324		1,342,902		3,369,926		228,822		5,240,974
(*)	The Company designated ~~W~~1,342,902 million of equity instruments that are not held for<br>trading as financial assets at FVOCI.
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---	---	---
	December 31, 2023
	Financial<br>assets at<br>FVTPL		Equity<br>instruments at<br>FVOCI		Financial assets at<br>amortized cost		Derivatives<br>hedging<br>instrument		Total
Cash and cash equivalents	~~W~~	4,774		—		626,292		—		631,066
Financial instruments		47,364		—		139,354		—		186,718
Long-term investment securities(*)		218,685		1,207,605		—		—		1,426,290
Accounts receivable – trade		—		—		1,495,617		—		1,495,617
Loans and other receivables		273,945		—		612,432		—		886,377
Derivative financial assets		2,323		—		—		116,210		118,533
	~~W~~	547,091		1,207,605		2,873,695		116,210		4,744,601
(*)	The Company designated ~~W~~1,207,605 million of equity instruments that are not held for<br>trading as financial assets at FVOCI.
---	---

SK TELECOM CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

34.	Categories of Financial Instruments, Continued
(2)	Financial liabilities by category as of December 31, 2024 and 2023 are as follows:
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---
	December 31, 2024
	Financial liabilities<br>at FVTPL		Financial liabilities<br>at amortized cost		Derivatives hedginginstrument		Total
Derivative financial liabilities	~~W~~	81,156		—		748		81,904
Borrowings		—		450,000		—		450,000
Debentures		—		6,635,194		—		6,635,194
Lease liabilities(*)		—		1,158,452		—		1,158,452
Accounts payable – other and others		—		3,489,056		—		3,489,056
	~~W~~	81,156		11,732,702		748		11,814,606
(In millions of won)
---	---	---	---	---	---	---
	December 31, 2023
	Financial liabilities<br>at FVTPL		Financial liabilities<br>at amortized cost		Total
Derivative financial liabilities	~~W~~	295,876		—		295,876
Borrowings		—		640,000		640,000
Debentures		—		6,666,939		6,666,939
Lease liabilities(*)		—		1,226,545		1,226,545
Accounts payable – other and others		—		4,146,076		4,146,076
	~~W~~	295,876		12,679,560		12,975,436
(*)	The categorization of financial liabilities is not applicable to lease liabilities, but they are classified as<br>financial liabilities measured at amortized cost, considering the nature of measuring liabilities.
---	---

SK TELECOM CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

35.	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, interest rates and price fluctuations. 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, long-term investment securities, accounts receivable – trade and others, etc. Financial liabilities consist of accounts payable – other and others, borrowings, debentures, lease liabilities and others.

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

The Company’s currency risk is mainly related to changes in recognized assets and liabilities due to exchange rate fluctuations. If the Company determines that it is necessary to hedge currency risk for business purposes, the Company manages currency risk by using currency swaps, etc. Currency risk occurs 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 December 31, 2024 are as follows:

(In millions of won, thousands of foreign currencies)
				Liabilities
		Wonequivalent		Foreign<br>currencies		Won<br>equivalent
	41,348	~~W~~	60,782		710,134	~~W~~	1,043,897
	6,347		9,703		—		—
Others	—		508		—		23
		~~W~~	70,993			~~W~~	1,043,920

All values are in US Dollars.

In addition, the Company has entered into cross currency swaps to hedge against currency risk related to foreign currency debentures. (See Note 19)

As of December 31, 2024, a hypothetical change in exchange rates by 10% would have increased (decreased) the Company’s profit before income tax and equity as follows:

(In millions of won)
					Equity
		If decreased by 10%			If increased by 10%		If decreased by 10%
	4,338		(4,338	)	~~W~~	4,338		(4,338	)
	970		(970	)		970		(970	)
Others	49		(49	)		49		(49	)
	5,357		(5,357	)	~~W~~	5,357		(5,357	)

All values are in Euros.

SK TELECOM CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

35.	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 December 31, 2024, floating-rate borrowings and debentures amount to ~~W~~200,000 million and ~~W~~441,000 million, respectively, and the Company has entered into interest rate swaps to hedge interest rate risk related to the floating-rate borrowings and debentures. Therefore, profit before income tax for the year ended December 31, 2024 would not have been affected by the changes in interest rates of floating-rate debentures.

As of December 31, 2024, the floating-rate long-term payables – other are ~~W~~921,075 million. If the interest rate increases (decreases) by 1%p with all other variables held constant, profit before income tax and equity for the year ended December 31, 2024, would change by ~~W~~9,211 million in relation to the floating-rate long-term payables – other that are exposed to interest rate risk.

SK TELECOM CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

35.	Financial Risk Management, Continued
(1)	Financial risk management, Continued
---	---
1)	Market risk, Continued
---	---
(iii)	Price fluctuations risk
---	---

As of December 31, 2024, the Company holds equity instruments in an active trading market, exposing it to price fluctuation risk. Assuming all other variables remain constant, the impact on the Company’s profit before income tax and equity resulting from a 10% fluctuation in the per-share stock price of the equity securities for the year ended December 31, 2024 is as follows.


Profit before income tax				Equity
If increased by 10%		If decreased by 10%		If increased by 10%		If decreased by 10%
~~W~~	—		—	~~W~~	81,371		(81,371	)

SK TELECOM CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

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

The maximum credit exposure as of December 31, 2024 and 2023 are as follows:

(In millions of won)
	December 31, 2024		December 31, 2023
Cash and cash equivalents	~~W~~	1,165,121		631,021
Financial instruments		79,354		186,718
Accounts receivable – trade		1,508,893		1,495,617
Contract assets		18,576		21,613
Loans and other receivables		840,282		886,377
Derivative financial assets		228,822		118,533
	~~W~~	3,841,048		3,339,879

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 by 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.

SK TELECOM CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

35.	Financial Risk Management, Continued
(1)	Financial risk management, Continued
---	---
2)	Credit risk, Continued
---	---
(i)	Accounts receivable – trade and contract assets
---	---

The Company establishes a loss allowance in respect of accounts receivable – trade and contract assets. 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. Details of changes in loss allowance for the year ended December 31, 2024 are included in note 5.

(ii)	Debt investments

The credit risk arises from debt investments included in ~~W~~79,354 million of financial instruments, and ~~W~~840,281 million of loans and other receivables. To limit the exposure to this risk, the Company transacts only with financial institutions with credit ratings that are considered to be low credit risk.

Most of the Company’s debt investments are considered to have a low risk of default and the borrower has a strong capacity to meet its contractual cash flow obligations in the near term. Thus the Company measured the loss allowance for the debt investments at an amount equal to 12-month expected credit losses.

Meanwhile, the Company monitors changes in credit risk at each reporting date. The Company recognized the loss allowance at an amount equal to lifetime expected credit losses when the credit risk on the debt investments is assumed to have increased significantly if it is more than 30 days past due.

The Company’s maximum exposure to credit risk is equal to each financial asset’s carrying amount. The gross carrying amounts of each financial asset except for the accounts receivable – trade and derivative financial assets as of December 31, 2024 are as follows:

(In millions of won)
	Financial assets<br>at FVTPL			Financial assets at amortized cost
			12-month ECL				Lifetime ECL –<br>not<br>credit impaired			Lifetime ECL –<br>credit impaired
Gross carrying amount	~~W~~	223,761			693,168			6,577			59,798
Loss allowance		—			(2,688	)		(3,317	)		(57,664	)
Carrying amount	~~W~~	223,761			690,480			3,260			2,134

SK TELECOM CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

35.	Financial Risk Management, Continued
(1)	Financial risk management, Continued
---	---
2)	Credit risk, Continued
---	---
(ii)	Debt investments, Continued
---	---

Changes in the loss allowance for the debt investments for the year ended December 31, 2024 are as follows:

(In millions of won)
	12-month ECL			Lifetime ECL –<br>not credit impaired			Lifetime ECL –<br>credit impaired			Total
December 31, 2023	~~W~~	2,590			3,089			63,876			69,555
Remeasurement of loss allowance, net		799			3,265			93			4,157
Transfer to lifetime ECL – not credit impaired		(701	)		701			—			—
Transfer to lifetime ECL – credit impaired		—			(3,738	)		3,738			—
Amounts written off		—			—			(11,188	)		(11,188	)
Recovery of amounts written off		—			—			1,145			1,145
December 31, 2024	~~W~~	2,688			3,317			57,664			63,669
(iii)	Cash and cash equivalents
---	---

The Company deposits ~~W~~1,165,121 million of cash and cash equivalents as of December 31, 2024 (~~W~~631,021 million as of December 31, 2023) at banks and financial institutions with credit ratings above the certain level. The impairment on cash and cash equivalents was measured using a 12-month expected credit loss, taking into account the short-term exposure. The Company assessed the risk of cash and cash equivalents based on the counterparty’s external credit rating, determining it to be low.

SK TELECOM CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

35.	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 December 31, 2024 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(*1)	~~W~~	450,000		467,502		261,316		206,186		—
Debentures(*1)		6,635,194		7,553,454		1,889,902		3,561,759		2,101,793
Lease liabilities		1,158,452		1,271,134		312,285		823,110		135,739
Accounts payable – other and others(*1,2)		3,489,056		3,544,473		2,951,650		587,665		5,158
	~~W~~	11,732,702		12,836,563		5,415,153		5,178,720		2,242,690
(*1)	The contractual cash flow is amount that includes interest payables.
---	---
(*2)	The Company’s accounts payable – other and others includes amounts for payments made using electronic<br>payments through the supplier finance arrangements. The Company pays the amount within the normal operating cycle, and no collateral is incurred in connection with the agreement and there is no substantial change in the payment conditions,<br>therefore, the amount is classified as accounts payable – other and presented as operating cash flows in the statements of cash flows. Accounts payable – other and others relating to the supplier finance arrangements amounts to<br>~~W~~298,448 million as of December 31, 2024.
---	---

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

As of December 31, 2024, 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
Assets	~~W~~	228,822		238,465			99,398		139,067
Liabilities		748		(750	)		—		(750	)

SK TELECOM CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

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

The Company manages its capital to ensure that it will be able to continue as a going concern 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, 2023.

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 December 31, 2024 and 2023 are as follows:

(In millions of won)
	December 31, 2024			December 31, 2023
Total liabilities	~~W~~	13,624,772			14,559,839
Total equity		10,960,854			10,436,093
Debt-equity ratios		124.30	%		139.51	%

SK TELECOM CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

35.	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>December 31, 2024 and 2023 are as follows:
---	---
(In millions of won)	December 31, 2024
---	---	---	---	---	---	---	---	---	---	---
	Carryingamount		Level 1		Level 2		Level 3		Total
Financial assets that are measured at fair value:
FVTPL	~~W~~	299,324		—		223,761		75,563		299,324
Derivative hedging instruments		228,822		—		228,822		—		228,822
FVOCI		1,342,902		1,088,578		—		254,324		1,342,902
	~~W~~	1,871,048		1,088,578		452,583		329,887		1,871,048
Financial liabilities that are measured at fair value:
Derivative financial liabilities	~~W~~	81,904		—		748		81,156		81,904
Financial liabilities that are not measured at fair value:
Borrowings	~~W~~	450,000		—		453,965		—		453,965
Debentures		6,635,194		—		6,637,948		—		6,637,948
Long-term payables – other		907,720		—		930,604		—		930,604
	~~W~~	7,992,914		—		8,022,517		—		8,022,517
(In millions of won)	December 31, 2023
---	---	---	---	---	---	---	---	---	---	---
	Carrying<br>amount		Level 1		Level 2		Level 3		Total
Financial assets that are measured at fair value:
FVTPL	~~W~~	547,091		—		326,083		221,008		547,091
Derivative hedging instruments		116,210		—		116,210		—		116,210
FVOCI		1,207,605		1,131,033		—		76,572		1,207,605
	~~W~~	1,870,906		1,131,033		442,293		297,580		1,870,906
Financial liabilities that are measured at fair value:
Derivative financial liabilities	~~W~~	295,876		—		—		295,876		295,876
Financial liabilities that are not measured at fair value:
Borrowings	~~W~~	640,000		—		638,536		—		638,536
Debentures		6,666,939		—		6,503,016		—		6,503,016
Long-term payables – other		1,260,453		—		1,294,977		—		1,294,977
	~~W~~	8,567,392		—		8,436,529		—		8,436,529

SK TELECOM CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

35.	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>December 31, 2024 and 2023 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 in such valuation methods include swap rate, interest rate, risk premium and the volatility of stock price, 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 December 31, 2024 are as follows:

	Interest rate
Derivative instruments		2.65% ~ 4.67%
Borrowings and debentures		3.16% ~ 3.21%
Long-term payables – other		3.17% ~ 3.23%
2)	There have been no transfers between Level 1 and Level 2 for the year ended December 31, 2024.<br>The changes of financial assets and liabilities classified as Level 3 for the year ended December 31, 2024 are as follows:
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	Balance as of<br>January 1,<br>2024			Gain<br>for the year		OCI		Acquisition		Disposal			Transfer			Balance as of<br>December 31,<br>2024
Financial assets:			****
FVTPL	~~W~~	221,008			16,046		—		—		(3,963	)		(157,528	)		75,563
FVOCI		76,572			—		28,428		1,000		(217	)		148,541			254,324
	~~W~~	297,580			16,046		28,428		1,000		(4,180	)		(8,987	)		329,887
Financial liabilities:			****
FVTPL	~~W~~	(295,876	)		214,720		—		—		—			—			(81,156	)

SK TELECOM CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

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

Carrying amount of financial instruments recognized to which offset agreements are applicable as of December 31, 2024 and 2023 are as follows:

(In millions of won)	December 31, 2024
	Gross financial<br>instruments<br>recognized		Amount<br>offset			Net financial<br>instruments<br>presented on the<br>separate<br>statement of<br>financial position
Financial assets:
Accounts receivable – trade and others	~~W~~	72,747		(72,747	)		—
Financial liabilities:
Accounts payable – other and others	~~W~~	74,658		(72,747	)		1,911
(In millions of won)	December 31, 2023
---	---	---	---	---	---	---	---
	Gross financial<br>instruments<br>recognized		Amount<br>offset			Net financial<br>instruments<br>presented on the<br>separate<br>statement of<br>financial position
Financial assets:
Accounts receivable – trade and others	~~W~~	72,597		(72,597	)		—
Financial liabilities:
Accounts payable – other and others	~~W~~	74,388		(72,597	)		1,791

SK TELECOM CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

36.	Transactions with Related Parties
(1)	List of related parties
---	---
Relationship	Company
---	---
Ultimate controlling entity	SK Inc.
Subsidiaries	SK Broadband Co., Ltd. and 20 others(*)
Joint venture	UTC Kakao-SK Telecom ESG Fund
Associates	SK China Company Ltd. and 44 others
Others	The Ultimate controlling entity’s subsidiaries and associates and others.
(*)	As of December 31, 2024, subsidiaries of the Company are as follows:
---	---
Subsidiary		Ownership<br>percentage<br>*(%)(1)**		Primary business
---	---	---	---	---
Subsidiaries owned by the Company	SK Telink Co., Ltd.		100.0	International telecommunication and<br><br><br>Mobile Virtual Network Operator service
	NATE Communications Corporation<br> <br>(Formerly, SK<br>Communications Co., Ltd.)		100.0	Internet website services
	SK Broadband Co., Ltd.		74.4	Fixed-line 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)
	YTK Investment Ltd.		100.0	Investment
	Atlas Investment		100.0	Investment
	SK Telecom Americas, Inc		100.0	Information gathering and consulting
	Happy Hanool Co., Ltd.		100.0	Service
	SK stoa Co., Ltd.		100.0	Other telecommunication retail business
	SAPEON Inc.		62.5	Manufacturing non-memory and other electronic<br><br><br>integrated circuits
	Astra AI Infra LLC(*2)		100.0	Investment
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.		100.0	Database and internet website service
Subsidiary owned by SK Telecom Americas, Inc.	Global AI Platform Corporation		100.0	Software development and supply services
Subsidiary owned by Global AI Platform Corporation	Global AI Platform Corporation Korea		100.0	Software development and supply services
Other(*3)	SK Telecom Innovation Fund, L.P.		100.0	Investment

SK TELECOM CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

36.	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 Astra AI Infra LLC for the year ended December 31, 2024.<br>
---	---
(*3)	Other is owned by Atlas Investment and another subsidiary of the Company.
---	---

As of December 31, 2024, the Company belongs to SK Group, a conglomerate as defined in the Monopoly Regulation and Fair Trade Act. 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 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 years ended December 31, 2024 and 2023 are as follows:

(In millions of won)
	2024		2023
Salaries	~~W~~	5,673		4,139
Defined benefit plan expenses		1,362		1,005
Share option		977		2,542
	~~W~~	8,012		7,686

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

SK TELECOM CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

36.	Transactions with Related Parties, Continued
(3)	Transactions with related parties for the years ended December 31, 2024 and 2023 are as follows:<br>
---	---
(In millions of won)		2024
---	---	---	---	---	---	---	---
Scope	Company	Operating<br>revenue<br>and others		Operating<br>expense<br>and others<br>*(1)**		Acquisition<br>of property<br>and<br>equipment<br>and others
Ultimate Controlling Entity	SK Inc.(*2)	~~W~~	10,499		568,328		70,384
Subsidiaries	SK Broadband Co., Ltd. (*3)		315,031		609,591		1,657
	PS&Marketing Corporation(*4)		6,122		1,291,206		1,258
	SK O&S Co., Ltd.		3,214		267,636		56,445
	SK Telink Co., Ltd.(*5)		133,063		16,270		27
	SERVICE ACE Co., Ltd.(*6)		14,408		122,356		—
	SERVICE TOP Co., Ltd.(*7)		12,938		118,313		—
	NATE Communications Corporation<br><br><br>(Formerly, SK Communications Co., Ltd.)		1,414		2,658		776
	Others		6,476		45,013		1,013
			492,666		2,473,043		61,176
Associates	F&U Credit information Co., Ltd.		758		43,928		266
	Daehan Kanggun BcN Co., Ltd.		9,552		—		—
	Others(*8)		7,927		13,759		271
			18,237		57,687		537
Others	SK Innovation Co., Ltd.		5,913		12,590		—
	SK Networks Co., Ltd.		1,286		10,883		—
	SK Networks Service Co., Ltd.		507		41,349		2,153
	SK Energy Co., Ltd.		1,669		180		—
	Content Wavve Corp.		13,432		83,119		—
	Happy Narae Co., Ltd.		163		11,341		98,378
	SK Shieldus Co., Ltd.		51,118		91,288		8,408
	Eleven Street Co., Ltd.		7,176		28,157		—
	SK Planet Co., Ltd.		5,166		73,866		2,893
	SK hynix Inc.		39,980		233		—
	Tmap Mobility Co., Ltd.		15,137		5,677		—
	Dreamus Company		4,281		65,599		264
	One Store Co., Ltd.		14,108		65		—
	UNA Engineering Inc.		—		10,266		13,026
	Others(*9)		35,112		77,881		25,236
			195,048		512,494		150,358
		~~W~~	716,450		3,611,552		282,455

SK TELECOM CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

36.	Transactions with Related Parties, Continued
(3)	Transactions with related parties for the years ended December 31, 2024 and 2023 are as follows,<br>Continued:
---	---
(*1)	Operating expense and others include lease payments by the Company.
---	---
(*2)	Operating expense and others include ~~W~~232,466 million of dividends paid by the Company.<br>
---	---
(*3)	Operating revenue and others include ~~W~~149,526 million of dividend income received.<br>
---	---
(*4)	Operating expense and others include ~~W~~707,579 million paid to PS&Marketing<br>Corporation relating to purchase of accounts receivable resulting from sale of handsets.
---	---
(*5)	Operating revenue and others include ~~W~~14,971 million of dividend income received.<br>
---	---
(*6)	Operating revenue and others include ~~W~~3,302 million of dividend income received.<br>
---	---
(*7)	Operating revenue and others include ~~W~~5,700 million of dividend income received.<br>
---	---
(*8)	Operating revenue and others include ~~W~~590 million of dividend received from Start-up Win-Win Fund, ~~W~~5,055 million of dividends received from Korea IT Fund, ~~W~~1,439 million of dividends received from Citadel<br>Pacific Telecom Holdings, LLC and ~~W~~499 million of dividends received from UNISK(Beijing) Information Technology Co., Ltd.
---	---
(*9)	SK RENT A CAR Co., Ltd. was excluded from the related parties for the year ended December 31, 2024, and<br>the transactions above occurred before the related party relationship terminated.
---	---

SK TELECOM CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

36.	Transactions with Related Parties, Continued
(3)	Transactions with related parties for the years ended December 31, 2024 and 2023 are as follows,<br>Continued:
---	---
(In millions of won)		2023
---	---	---	---	---	---	---	---
Scope	Company	Operating revenue and<br>others		Operating expense<br>*and others (1)**		Acquisition of property<br>and equipment and<br>others
Ultimate Controlling Entity	SK Inc.(*2)	~~W~~	12,897		542,435		79,080
Subsidiaries	SK Broadband Co., Ltd. (*3)		312,739		598,966		1,259
	PS&Marketing Corporation(*4)		7,226		1,257,951		1,483
	SK O&S Co., Ltd.		3,309		252,121		73,450
	SK Telink Co., Ltd.(*5)		108,567		12,838		—
	SERVICE ACE Co., Ltd.(*6)		15,058		125,219		—
	SERVICE TOP Co., Ltd.(*7)		10,933		127,703		—
	NATE Communications Corporation<br><br><br>(Formerly, SK Communications Co., Ltd.)		1,440		3,309		1,936
	Others		9,529		26,665		1,008
			468,801		2,404,772		79,136
Associates	F&U Credit information Co., Ltd.		2,151		45,122		552
	SK AMERICAS Inc.<br> <br>(Formerly, SK USA<br>Inc.)		—		5,384		—
	Daehan Kanggun BcN Co., Ltd.		12,972		—		—
	Others(*8)		8,806		15,717		827
			23,929		66,223		1,379
Others	SK Innovation Co., Ltd.		19,164		13,709		—
	SK Networks Co., Ltd.		1,256		12,303		—
	SK Networks Service Co., Ltd.		538		45,101		2,758
	SK Energy Co., Ltd.		1,837		363		—
	Content Wavve Corp.		14,478		87,238		—
	Happy Narae Co., Ltd.		148		30,242		79,776
	SK Shieldus Co., Ltd.		50,997		93,776		14,595
	Eleven Street Co., Ltd.		7,325		32,693		—
	SK Planet Co., Ltd.		5,793		79,926		7,642
	SK hynix Inc.		47,486		178		—
	Tmap Mobility Co., Ltd.		15,397		8,907		—
	Dreamus Company		4,815		76,755		284
	One Store Co., Ltd.		15,696		160		—
	UNA Engineering Inc.		—		5,842		18,177
	Others		33,481		27,223		13,142
			218,411		514,416		136,374
		~~W~~	724,038		3,527,846		295,969

SK TELECOM CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

36.	Transactions with Related Parties, Continued
(3)	Transactions with related parties for the years ended December 31, 2024 and 2023 are as follows,<br>Continued:
---	---
(*1)	Operating expense and others include lease payments by the Company.
---	---
(*2)	Operating expense and others include ~~W~~218,019 million of dividends paid by the Company.<br>
---	---
(*3)	Operating revenue and others include ~~W~~149,526 million of dividend income received.<br>
---	---
(*4)	Operating expense and others include ~~W~~685,233 million paid to PS&Marketing<br>Corporation relating to purchase of accounts receivable resulting from sale of handsets.
---	---
(*5)	Operating revenue and others include ~~W~~3,009 million of dividend income received.<br>
---	---
(*6)	Operating revenue and others include ~~W~~4,004 million of dividend income received.<br>
---	---
(*7)	Operating revenue and others include ~~W~~3,000 million of dividend income received.<br>
---	---
(*8)	Operating revenue and others include ~~W~~2,165 million of dividends received from Korea IT<br>Fund, ~~W~~5,906 million of dividends received from Citadel Pacific Telecom Holdings, LLC and ~~W~~735 million of dividends received from UNISK(Beijing) Information Technology Co., Ltd.
---	---

100

SK TELECOM CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

36.	Transactions with Related Parties, Continued
(4)	Account balances with related parties as of December 31, 2024 and 2023 are as follows:<br>
---	---
(In millions of won)		December 31, 2024
---	---	---	---	---	---	---	---
		Receivables				Payables
Scope	Company	Loans		Accounts receivable –<br>trade, etc.		Accounts payable<br>– other, etc.
Ultimate Controlling Entity	SK Inc.	~~W~~	—		1,166		71,672
Subsidiaries	SK Broadband Co., Ltd.		—		128,050		186,030
	PS&Marketing Corporation		—		1,152		56,531
	SK O&S Co., Ltd.		—		57		63,748
	SK Telink Co., Ltd.		—		23,625		11,705
	SERVICE ACE Co., Ltd.		—		412		25,150
	SERVICE TOP Co., Ltd.		—		24		22,578
	NATE Communications Corporation<br><br><br>(Formerly, SK Communications Co., Ltd.)		—		2		7,489
	SK m&service Co., Ltd.		—		1,219		25,705
	Others		—		361		5,708
			—		154,902		404,644
Associates	F&U Credit information Co., Ltd.		—		—		4,000
	Daehan Kanggun BcN Co., Ltd.(*1)		22,147		—		—
	Konan Technology Inc.		—		—		63
	Others		—		353		2,715
			22,147		353		6,778
Others	SK hynix Inc.		—		11,948		206
	SK Planet Co., Ltd.		—		241		2,386
	Eleven Street Co., Ltd.		—		10,425		1,565
	One Store Co., Ltd.		—		474		9,883
	SK Shieldus Co., Ltd.		—		11,233		11,742
	SK Innovation Co., Ltd.		—		5,259		28,159
	SK Networks Co., Ltd.		—		262		26,319
	SK Networks Services Co., Ltd.		—		—		5,204
	Incross Co., Ltd.		—		1,650		20,215
	UNA Engineering Inc.		—		—		3,320
	Happy Narae Co., Ltd.		—		8		14,781
	Content Wavve Co., Ltd.		—		1,564		2
	Dreamus Company		—		313		2,055
	Others		—		8,106		9,861
			—		51,483		135,698
		~~W~~	22,147		207,904		618,792
(*1)	As of December 31, 2024, the Company recognized loss allowance for the entire balance of loans to Daehan<br>Kanggun BcN Co., Ltd.
---	---

101

SK TELECOM CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

36.	Transactions with Related Parties, Continued
(4)	Account balances with related parties as of December 31, 2024 and 2023 are as follows, Continued:<br>
---	---
(In millions of won)		December 31, 2023
---	---	---	---	---	---	---	---
		Receivables				Payables
Scope	Company	Loans		Accounts receivable –<br>trade, etc.		Accounts payable –<br>other, etc.
Ultimate Controlling Entity	SK Inc.	~~W~~	—		1,411		85,758
Subsidiaries	SK Broadband Co., Ltd.		—		60,464		234,710
	PS&Marketing Corporation		—		1,230		57,560
	SK O&S Co., Ltd.		—		7		68,671
	SK Telink Co., Ltd.		—		22,632		18,154
	SERVICE ACE Co., Ltd.		—		460		26,828
	SERVICE TOP Co., Ltd.		—		—		24,208
	NATE Communications Corporation<br><br><br>(Formerly, SK Communications Co., Ltd.)		—		2		7,033
	Others		—		3,230		15,775
			—		88,025		452,939
Associates	F&U Credit information Co., Ltd.		—		3		4,060
	Daehan Kanggun BcN Co., Ltd.(*1)		22,147		4,702		—
	SK AMERICAS Inc.<br> <br>(Formerly, SK USA<br>Inc.)		—		—		972
	Konan Technology Inc.		—		—		224
	Others		—		—		2,239
			22,147		4,705		7,495
Others	SK hynix Inc.		—		6,806		2,251
	SK Planet Co., Ltd.		—		9,313		5,579
	Eleven Street Co., Ltd.		—		1,957		2,842
	One Store Co., Ltd.		—		509		14,691
	SK Shieldus Co., Ltd.		—		10,972		10,157
	SK Innovation Co., Ltd.		—		3,308		27,806
	SK Networks Co., Ltd.		—		41		32,003
	SK Networks Services Co., Ltd.		—		—		8,314
	SK RENT A CAR Co., Ltd.		—		70		14,101
	Incross Co., Ltd.		—		1,607		659
	UNA Engineering Inc.		—		—		2,558
	Mintit Co., Ltd.		—		17,025		—
	Happy Narae Co., Ltd.		—		8		5,193
	Content Wavve Co., Ltd.		—		1,476		—
	Dreamus Company		—		504		2,315
	Others		—		7,776		2,976
			—		61,372		131,445
		~~W~~	22,147		155,513		677,637
(*1)	As of December 31, 2023, the Company recognized loss allowance for the entire balance of loans to Daehan<br>Kanggun BcN Co., Ltd.
---	---

102

SK TELECOM CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

36.	Transactions with Related Parties, Continued
(5)	The Company has granted SK REIT Co., Ltd. the right of first offer regarding the disposal of specified real<br>estates owned by the Company. Whereby, the negotiation period is within three ~ five years from June 30, 2021, when the agreement was signed, and the negotiation period of real estates on maturity was extended for three years as of<br>June 30, 2024. In addition, 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 Co., Ltd. purchases the real estate from the Company.
---	---
(6)	Details of additional investments and disposal in subsidiaries, associates and joint ventures for the year<br>ended December 31, 2024 are as presented in note 9.
---	---
37.	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.

The accounts receivable from sale of handsets amounting to ~~W~~241,962 million and ~~W~~291,747 million as of December 31, 2024 and 2023, 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 December 31, 2024, 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 material 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.

103

SK TELECOM CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

37.	Commitments and Contingencies, Continued
(4)	Commitment of acquisition and disposal of 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 held on 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, and the Company completed the acquisition of the shares for the year ended December 31, 2022. As a part of the aforementioned 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, 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, and completed the acquisition of the shares for the year ended December 31, 2022., The Company, HFG, and HanaCard Co., Ltd. may not dispose of shares they have acquired under the aforementioned transaction until March 31, 2025.

(5)

The acquisition cost of property and equipment and intangible assets to be incurred in subsequent periods under arrangements is ~~W~~22,034 million as of December 31, 2024.

(6)

According to the covenant for bond issuance and borrowings, the Company is required to maintain specific financial ratios, such as the debt ratio, at certain levels. The funds obtained must be used for specified purposes only, and regular reporting to lenders is mandated. Additionally, the contracts include clauses that restrict both provision of additional collateral of assets held by the Company and disposal of certain assets.

---

104

SK TELECOM CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

38.	Statements of Cash Flows
(1)	Adjustments for income and expenses from operating activities for the years ended December 31, 2024 and<br>2023 are as follows:
---	---
(In millions of won)
---	---	---	---	---	---	---
	2024			2023
Gain on foreign currency translations	~~W~~	(2,536	)		(300	)
Interest income		(43,168	)		(36,937	)
Dividends		(216,886	)		(209,195	)
Gain relating to financial instruments at FVTPL		(239,616	)		(87,199	)
Gain on disposal of property and equipment and intangible assets		(33,438	)		(20,825	)
Loss on foreign currency translations		1,392			660
Bad debt for accounts receivable – trade		33,085			28,765
Bad debt for accounts receivable – other		4,157			4,349
Loss relating to financial instruments at FVTPL		120,040			41,819
Gain (loss) relating to investments in subsidiaries, associates and joint ventures		(15,183	)		19,012
Depreciation and amortization		2,780,178			2,833,327
Loss on disposal of property and equipment and intangible assets		14,301			3,929
Impairment loss on property and equipment and intangible assets		49,622			—
Loss on sale of accounts receivable – other		35,317			65,027
Interest expense		315,794			325,769
Expense related to defined benefit plan		53,244			55,298
Bonus paid by treasury shares		24,988			20,420
Share option		4,567			7,051
Income tax expense		196,600			295,189
Other income (expenses)		10,794			(11,965	)
	~~W~~	3,093,252			3,334,194

105

SK TELECOM CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

38.	Statements of Cash Flows, Continued
(2)	Changes in assets and liabilities from operating activities for the years ended December 31, 2024 and 2023<br>are as follows:
---	---
(In millions of won)
---	---	---	---	---	---	---
	2024			2023
Accounts receivable – trade	~~W~~	(44,625	)		(99,070	)
Accounts receivable – other		(79,650	)		78,157
Advanced payments		3,309			9,089
Prepaid expenses		28,161			66,413
Inventories		(10,887	)		(4,741	)
Long-term accounts receivable – other		140,941			60,799
Guarantee deposits		14,880			(3,781	)
Contract assets		3,037			11,486
Accounts payable – other		(86,893	)		(225,677	)
Withholdings		109,194			4,802
Deposits received		(81	)		4,806
Accrued expenses		88,013			33,086
Plan assets		(464	)		(13,876	)
Retirement benefits payment		(76,849	)		(38,347	)
Contract liabilities		13,998			(29,187	)
Others		(2,349	)		(2,333	)
	~~W~~	99,735			(148,374	)
(3)	Material non-cash transactions for the years ended December 31,<br>2024 and 2023 are as follows:
---	---
(In millions of won)
---	---	---	---	---	---	---
	2024			2023
Decrease in accounts payable – other relating to the acquisition of property and equipment<br>and intangible assets	~~W~~	(170,233	)		(314,811	)
Increase of<br>right-of-use assets		325,743			253,838
Transfer from property and equipment to investment property		(8,435	)		6,264

106

SK TELECOM CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

38.	Statements of Cash Flows, Continued
(4)	Reconciliation of liabilities arising from financing activities for the years ended December 31, 2024 and<br>2023 are as follows:
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	2024
							Non-cash transactions
	January 1,<br>2024			Cash flows			Exchange rate<br>*changes()**		Fair value<br>changes			Other<br>changes		December 31,<br>2024
Total liabilities from financing activities:
Long-term borrowings	~~W~~	640,000			(190,000	)		—		—			—		450,000
Debentures		6,666,939			(162,857	)		126,112		—			5,000		6,635,194
Lease liabilities		1,226,545			(341,989	)		—		—			273,896		1,158,452
Long-term payables – other		1,260,453			(369,150	)		—		—			16,417		907,720
Derivative financial assets		(116,210	)		—			—		(112,612	)		—		(228,822	)
Derivative financial liabilities		—			—			—		748			—		748
	~~W~~	9,677,727			(1,063,996	)		126,112		(111,864	)		295,313		8,923,292
Other cash flows from financing activities:
Payments of cash dividends				~~W~~	(753,390	)
Payments of interest on hybrid bonds					(19,800	)
Acquisition of treasury shares					(15,788	)
					(788,978	)
				~~W~~	(1,852,974	)
(*)	The effect of changes in foreign exchange rates for financial liabilities at amortized cost.<br>
---	---

107

SK TELECOM CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

38.	Statements of Cash Flows, Continued
(4)	Reconciliation of liabilities arising from financing activities for the years ended December 31, 2024 and<br>2023 are as follows, Continued:
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	2023
							Non-cash transactions
	January 1,<br>2023			Cash flows			Exchange rate<br>*changes()**		Fair value<br>changes			Other<br>changes		December 31,<br>2023
Total liabilities from financing activities:
Short-term borrowings	~~W~~	100,000			(100,000	)		—		—			—		—
Long-term borrowings		740,000			(100,000	)		—		—			—		640,000
Debentures		6,988,970			(367,815	)		15,412		—			30,372		6,666,939
Lease liabilities		1,379,311			(354,235	)		—		—			201,469		1,226,545
Long-term payables – other		1,638,341			(400,245	)		—		—			22,357		1,260,453
Derivative financial assets		(222,622	)		126,000			—		(19,588	)		—		(116,210	)
	~~W~~	10,624,000			(1,196,295	)		15,412		(19,588	)		254,198		9,677,727
Other cash flows from financing activities:
Payments of cash dividends				~~W~~	(723,215	)
Payments of interest on hybrid bonds					(17,283	)
Acquisition of treasury shares					(285,487	)
Proceeds of hybrid bonds					398,509
Redemption of hybrid bonds					(400,000	)
					(1,027,476	)
				~~W~~	(2,223,771	)
(*)	The effect of changes in foreign exchange rates for financial liabilities at amortized cost.<br>
---	---

108

SK TELECOM CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

39.	Emissions Liabilities
(1)	The quantity of emissions rights allocated free of charge for each implementation year as of December 31,<br>2024 are as follows:
---	---
(In tCO2-eQ)
---	---	---	---	---	---	---	---	---	---	---	---	---
	Quantities<br>allocated<br>in 2021		Quantities<br>allocated<br>in 2022		Quantitiesallocated<br>in 2023		Quantities<br>allocated<br>in 2024		Quantities<br>allocated<br>in 2025		Total
Emissions rights allocated free of charge(*)		1,031,526		1,223,008		1,327,809		1,020,903		1,020,903		5,624,149
(*)	The changes in quantity due to additional allocation, cancellation of allocation and others are considered.<br>
---	---
(2)	Changes in emissions rights quantities the Company held are as follows:
---	---
(In tCO2-eQ)
---	---	---	---	---	---	---	---	---	---	---	---	---
	Quantities<br>allocated in<br>2022			Quantities<br>allocated in<br>2023			Quantities<br>allocated in<br>2024			Total
Beginning		—			306,575			414,356			720,931
Allocation at no cost		1,223,008			1,327,809			1,020,903			3,571,720
Purchase		204,761			(70,789	)		—			133,972
Surrendered or shall be surrendered		(1,121,194	)		(1,149,239	)		(1,236,210	)		(3,506,643	)
Ending		306,575			414,356			199,049			919,980
(3)	As of December 31, 2024, the estimated annual greenhouse gas emissions quantities of the Company are<br>1,236,210 tCO2-eQ.
---	---
40.	Non-current Assets Held for Sale
---	---

Non-current assets held for sale as of December 31, 2024 and 2023 are as follows:

(In millions of won)
		December 31, 2024		December 31, 2023
Investments in subsidiaries	NATE Communications Corporation<br><br><br>(Formerly, SK Communications Co., Ltd.)	~~W~~	7,035		—
Investments in associates	F&U Credit information Co., Ltd.		4,533		—
		~~W~~	11,568		—

109

SK TELECOM CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2024 and 2023

41.	Subsequent Events

The Company entered into a stock sale agreement in which the Company disposes of the entire shares of NATE Communications Corporation (formerly, SK Communications Co., Ltd.) and F&U Credit information Co., Ltd. on December 18, 2024, and completed the disposal of the shares of NATE Communications Corporation (formerly, SK Communications Co., Ltd.) on January 23, 2025.

110

Audit opinion on internal control over financial reporting

The accompanying independent auditor’s report on internal control over financial reporting is attached as a result of auditing the internal control over financial reporting of SK Telecom Co., Ltd. (the “Company”) and the separate financial statements of the Company for the year ended December 31, 2024 in accordance with the Article 8 of the Act on External Audit ofStock Companies.

Attachments:

1.	Independent auditor’s report on Internal Control over Financial Reporting
2.	Management’s Annual Report on Internal Control over Financial Reporting
---	---

111

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

Independent auditor’s report on Internal Control over Financial Reporting

(Based on a report originally issued in Korean)

SK Telecom Co., Ltd.:

The Shareholders and Board of Directors

Opinion on Internal Control over Financial Reporting

We have audited the internal control over financial reporting (“ICFR”) of SK Telecom Co., Ltd.’s (the “Company”) based on the Conceptual Framework for Designing and Operating ICFR (“ICFR Design and Operation Framework”) established by the Operating Committee of ICFR in Korea (the “ICFR Committee”) as of December 31, 2024.

In our opinion, the Company’s ICFR has been effectively designed and operated, in all material respects, as of December 31, 2024, in accordance with the ICFR Design and Operation Framework.

We also have audited, in accordance with Korean Standards on Auditing (“KSA”), the separate statement of financial position as of December 31, 2024, the separate statements of income, comprehensive income, changes in equity, and cash flows for the year then ended, and notes to the separate financial statements, including a summary of material accounting policies, of the Company, and our report dated March 10, 2025 expressed an unqualified opinion thereon.

Basis for Opinion on ICFR

We conducted our audit in accordance with KSA. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of ICFR section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of ICFR in the Republic of Korea, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Responsibilities of Management and Those Charged with Governance for ICFR

Those charged with governance are responsible for overseeing the Company’s ICFR process.

Auditor’s Responsibilities for the Audit of ICFR

Our responsibility is to express an opinion on the Company’s ICFR based on our audit. We conducted our audit in accordance with KSA. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective ICFR was maintained in all material respects.

An audit of ICFR involves performing procedures to obtain audit evidence as to whether a material weakness exists. The procedures selected depend on the auditor’s judgment, including the assessment of the risks that a material weakness exists An audit also includes testing and evaluating the design and operation of ICFR based on obtaining an understanding of ICFR and the assessed risk.

112

LOGO

ICFR definition and Inherent Limitations

A company’s ICFR is implemented by those charged with governance, management, and other employees and is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with International Financial Reporting Standards as adopted by the Republic of Korea (“KIFRS”). A company’s ICFR includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with KIFRS, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, ICFR may not prevent, or detect misstatements of the financial statements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that ICFR may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

The engagement partner on the audit resulting in this independent auditor’s report is Yoo, Jung Ho.

March 10, 2025

This report is effective as of March 10, 2025,<br>the independent auditor’s report date. Accordingly, certain material subsequent events or circumstances may have occurred during the period from the auditor’s report date to the time this report is used. Such events and circumstances could<br>significantly affect the Company’s ICFR and may result in modifications to this report.

113

Management’s Annual Report on Internal Control overFinancial Reporting

English translation of a Report Originally Issued in Korean

To Shareholders, the Board of Directors and Audit Committee of

SK Telecom Co., Ltd.

We, as the Chief Executive Officer (“CEO”) and Internal Control over Financial Reporting (“ICFR”) Officer of SK Telecom Co., Ltd. (“the Company”), assessed the status of the design and operation of the Company’s ICFR for the year ending December 31, 2024.

The Company’s management including the CEO and ICFR Officer is responsible for designing and operating ICFR. We, as the CEO and ICFR Officer (collectively, “We”, “Our” or “Us”), evaluated whether the ICFR has been appropriately designed and is effectively operating to prevent and detect error or fraud which may cause material misstatement of the financial statements to ensure preparation and disclosure of reliable financial information.

We used the ‘Conceptual Framework for Designing and Operating Internal Control over Financial Reporting’ established by the Operating Committee of Internal Control over Financial Reporting in Korea (the “ICFR Committee”)’ as the criteria for design and operation of the Company’s ICFR. We also conducted an evaluation of ICFR based on the ‘Management Guideline for Evaluating and Reporting Effectiveness of Internal Control over Financial Reporting’ established by the ICFR Committee.

Based on our assessment of ICFR operation, we concluded that the Company’s ICFR has been appropriately designed and is operating effectively in all material respects as of December 31, 2024, in accordance with the ‘Conceptual Framework for Designing and Operating Internal Control over Financial Reporting’.

February 25, 2025

/s/ Kim, Yang Seob
Internal Control over Financial Reporting Officer
/s/ Ryu, Young Sang
Chief Executive Officer

114

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