Sk Telecom Co Ltd 6-K, filed Feb 26, 2021

Sk Telecom Co Ltd (SKM)

6-K 2021-02-26 For: 2021-02-26

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Added on April 04, 2026

About this 6-K

Sk Telecom Co Ltd filed this 6-K on February 26, 2021.

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1. Date / Time	March 25, 2021 (Thursday), 10:00 am (Seoul time)

2. Place	SUPEX Hall, 4th Floor, SK T-Tower, 65, Eulji-ro, Jung-gu, Seoul, Korea

3. Agenda	1. Approval of Financial Statements for the 37th Fiscal Year (2020) 2. Amendments to the Articles of Incorporation 3. Grant of Stock Options 4. Appointment of an Executive Director (Ryu, Young Sang) 5. Appointment of an Independent Non-executive Director to Serve as an Audit Committee Member (Yoon, Young Min) 6. Approval of the Ceiling Amount of Remuneration for Directors

4. Date of the resolution by the Board	February 25, 2021

- Attendance of independent non-executive directors	Present:	5
	Absent:	0

5. Other important matters relating to an investment decision	- The place and time of the annual general meeting of shareholders may be subject to change by a decision of the Company’s representative director in case of an emergency, including due to COVID-19.


Current	Proposed Amendment	Remarks

<Newly established>	1-2. Corporate Governance Charter The Company shall constitute a Corporate Governance Charter encompassing its purpose and plans to develop its continued efforts to establish transparent and sound corporate governance (newly established on March 25, 2021).	To stipulate Company’s purpose and plans to establish transparent and sound corporate governance, and institute a ground for the constitution of the Corporate Governance Charter in the Articles of Incorporation.

Article 17-3. Electronic Registration of Rights Indicated in Bonds and Subscription Warrants Instead of issuing the bond certificates and subscription warrants, the Company electronically registers in the electronic register of the electronic registry the rights that shall be indicated in the bonds and subscription warrants (newly established on March 26, 2019).	17-3. Electronic Registration of Rights Indicated in Bonds and Subscription Warrants Instead of issuing the bond certificates and subscription warrants, the Company electronically registers in the electronic register of the electronic registry the rights that shall be indicated in the bonds and subscription warrants; provided that the Company is not required to electronically register the rights to be indicated on bonds if electronic register of such rights are not mandatory under relevant laws and regulations (newly established on March 26, 2019, amended on March 25, 2021).	To add an exception for bonds that are not required to be electronically registered and prevent confusion over the application of the electronic register system.

Article 33. Term of office of Directors The term of office of the Directors (including Representative Director) shall be until the close of the 3rd Ordinary General Meeting of Shareholders convened after he/she office (amended on March 16, 2001).	Article 33. Term of office of Directors (1) The term of office of the Directors (including Representative Director) shall be until the close of the 3rd Ordinary General Meeting of Shareholders convened after he/she office (amended on March 16, 2001, amended on March 25, 2021). (2) The total term of outside Directors shall not exceed 6 years, and, when including the service at affiliates, 9 years (newly established on March 25, 2021).	To revise this Article in accordance with the amendment of the Enforcement Decree of the Commercial Act regarding the term limit of outside directors.


Article 34. Appointment of Directors in case of Vacancy (1) If a Director falls under one of the following items, his/her position is deemed to be vacant (amended on March 17, 2000): 1. When dead; 2. When adjudicated insolvent; 3. When declared incapacitated person or quasi- incapacitated person; and 4. When sentenced to a punishment heavier than imprisonment without prison labor.	Article 34. Appointment of Directors in case of Vacancy (1) If a Director falls under one of the following items, his/her position is deemed to be vacant (amended on March 17, 2000, amended on March 25, 2021): 1. When dead; 2. When adjudicated insolvent; 3. When adjudicate on the commencement of adult guardianship or limited guardianship; or 4. When sentenced to a punishment heavier than imprisonment without prison labor.	To revise this Article in accordance with the amendment of the Civil Act abolishing the element of (quasi-) incapacitation and implementing a guardianship system.

Article 54-2. Interim Dividends (1) The Company may pay dividends in cash to the Shareholders registered in the Register of Shareholders as of June 30, by resolution of the Board of Directors, one time during each fiscal year (established on March 12, 2004). (2) All other matters relevant to the Interim Dividends under Paragraph (1), including the limitation amount of the Interim Dividends and/or the payment time of the Interim Dividends, shall comply with the relevant laws and regulations, including the Commercial Act (amended on March 23, 2012). (3) In case of the payment of the Interim Dividends, the rate of the Interim Dividends to common shares shall also apply to the Interim Dividends to preferred shares under Article 8 (established on March 12, 2004). (4) The provisions of Article 10 Paragraph (2) and Article 54 Paragraph (4) shall apply mutatis mutandis to this Article (established on March 12, 2004).	Article 54-2. Interim Dividends (deleted on March 25, 2021)	To substitute the interim dividend system with a quarterly dividend system under Financial Investment Services and Capital Markets Act.


<Newly established>	Article 54-3. Quarterly Dividends (1) Dividends of profits may be paid by the Company in cash on the last day of the third, sixth, and ninth month from the beginning of each fiscal year (the “record date for quarterly dividend”) by a resolution of Board of Directors. (2) Quarterly dividends under Paragraph (1) shall be paid to the shareholders entered in and the pledgees registered with the Register of Shareholders as of the record date for quarterly dividend. (3) All other matters relevant to the quarterly dividends to be paid under Paragraph (1), including the limitation on amount and the time of payment, shall comply with relevant laws and regulations, including Financial Investment Services and Capital Markets Act. (4) The provision of Article 54 Paragraph (4) shall apply mutatis mutandis to the quarterly dividend to be paid under Paragraph (1) (established on March 25, 2021).	To substitute the interim dividend system with a quarterly dividend system under Financial Investment Services and Capital Markets Act.

<Newly established>	Addendum No. 29 (as of March 25, 2021) Article 1. Date of Effectiveness These Articles of Incorporation shall take effect as of March 25, 2021.	—


Name	Position	Number of shares issuable
Name	Position	Type of shares	Number of shares
Ryu, Young Sang	Executive Director and President of Mobile Network Operations Division	Registered common shares		5,990
Kang, Jong Ryeol	Head of ICT Infra Center	Registered common shares		2,350
Yoon, Poong Young	Head of Corporate Center 1	Registered common shares		3,360
Ha, Hyung Il	Head of Corporate Center 2	Registered common shares		3,760
Cho, Dong Hwan	Head of Cloud Transformation Center	Registered common shares		1,770
Kim, Yoon	Head of T3K	Registered common shares		2,110
Lee, HyunA	Head of AI&CO	Registered common shares		2,880
Ha, Seong Ho	Head of Corporate Relations Center	Registered common shares		1,920
Shin, Sang Kyu	Head of Corporate Culture Center	Registered common shares		1,530
Huh, Seok Joon	Head of Private Placement Group	Registered common shares		2,260
Song, Jae Seung	Head of Corp Development Group	Registered common shares		2,650
Han, Myung Jin	Head of Subscription Service CO	Registered common shares		1,450
Ryu, Byung Hoon	Head of Business Strategy Group	Registered common shares		1,250
Total:		Registered common shares		33,280


Year	Grant date	Number of recipients			Type of shares	Number of shares issuable		Number of shares issued upon exercise		Number of expired stock options		Remaining number of shares issuable
2018	February 20		3		Common shares		5,707		—		4,349		1,358
2019	February 22		4		Common shares		5,477		—		1,300		4,177
2019	March 26		1		Common shares		1,734		—		—		1,734
2020	March 26		10		Common shares		127,643		—		—		127,643
	Total		18	*	Common shares		140,561		—		5,649		134,912


Name of Candidate	Date of Birth	Candidate for independent non- executive director	Relationship with largest shareholder	Recommended by
Ryu, Young Sang	May 15, 1970	—	Executive director of affiliate (SK Telecom)	Board
Total: 1 candidate


Name of Candidate	Main Profession	Business Experience		Transactions with the Company in the Past Three Years
		Period	Contents

Ryu, Young Sang	Executive Director and President of Mobile Network Operations Division	2019 - Present	Executive Director and President of Mobile Network Operations Division		None
		2017 - 2018	Head of Corporate Center, SK Telecom
		2015 - 2016	Head of Corporate Development Office, SK C&C Co., Ltd.
		2014	Head of Business Development Office, SK Telecom


	Fiscal year 2021	Fiscal year 2020
Number of directors	8	8
Number of independent non-executive directors	5	5
Total amount of remuneration paid to directors	—	Won 10,029,407,125
Total amount or maximum authorized amount of remuneration for directors	Won 12,000,000,000	Won 12,000,000,000


(In millions of won)	*Note*		December 31, 2020		December 31, 2019		January 1, 2019
Assets
Current Assets:
Cash and cash equivalents		36,37	W	1,369,653		1,270,824		1,506,699
Short-term financial instruments		6,36,37,39		1,426,952		830,647		1,045,676
Short-term investment securities		11,36,37		150,392		166,666		195,080
Accounts receivable – trade, net		7,36,37,38		2,188,893		2,230,979		2,008,640
Short-term loans, net		7,36,37,38		97,464		66,123		59,094
Accounts receivable – other, net		3,7,36,37,38,39		982,296		907,320		950,978
Contract assets		9,37		100,606		127,499		90,072
Prepaid expenses		3,8		2,128,349		2,018,690		1,687,271
Prepaid income taxes		33		1,984		63,748		1,216
Derivative financial assets		22,36,37,40		8,704		26,253		13
Inventories, net		10		171,443		162,882		288,053
Advance payments and other		3,7,36,37		148,350		216,876		52,131

				8,775,086		8,088,507		7,884,423

Non-Current Assets:
Long-term financial instruments		6,36,37		893		990		1,221
Long-term investment securities		11,36,37		1,648,837		857,215		664,726
Investments in associates and joint ventures		13		14,354,113		13,385,264		12,811,771
Property and equipment, net		3,14,38,39		13,377,077		12,933,460		11,587,498
Goodwill		12,16		3,357,524		2,949,530		2,938,563
Intangible assets, net		17		4,436,194		4,866,092		5,511,235
Long-term contract assets		9,37		47,675		64,359		43,821
Long-term loans, net		7,36,37,38		40,233		33,760		29,034
Long-term accounts receivable - other		3,7,36,37,38,39		332,803		351,663		288,211
Long-term prepaid expenses		3,8		1,063,711		1,239,865		887,359
Guarantee deposits		7,36,37,38		172,474		164,652		311,342
Long-term derivative financial assets		22,36,37,40		155,991		124,707		55,444
Deferred tax assets		33		105,088		109,057		92,465
Defined benefit assets		21		3,557		1,125		31,926
Other non-current assets		7,36,37		35,701		32,122		26,527

				39,131,871		37,113,861		35,281,143

			W	47,906,957		45,202,368		43,165,566


(In millions of won)	*Note*		2020			2019
Operating revenue:		3,5,38
Revenue			W	18,624,651			17,740,716

Operating expenses:		3,38
Labor				3,006,172			2,822,673
Commissions		8		5,347,086			5,002,066
Depreciation and amortization		5		3,991,083			3,856,662
Network interconnection				770,712			752,334
Leased lines				294,722			263,367
Advertising				431,679			434,561
Rent				173,294			154,843
Cost of goods sold				1,608,470			1,833,362
Others		30		1,652,109			1,512,671

				17,275,327			16,632,539

Operating profit		5		1,349,324			1,108,177
Finance income		3,5,32		241,196			142,155
Finance costs		3,5,32		(497,193	)		(437,955	)
Gain relating to investments in subsidiaries, associates and joint ventures, net		5,13		1,028,403			449,543
Other non-operating income		3,5,31		99,051			102,731
Other non-operating expenses		3,5,31		(343,741	)		(203,650	)

Profit before income tax		5		1,877,040			1,161,001
Income tax expense		3,33		376,502			300,268

Profit for the year				1,500,538			860,733

Attributable to:
Owners of the Parent Company			W	1,504,352			888,698
Non-controlling interests				(3,814	)		(27,965	)
Earnings per share		3,34
Basic earnings per share (in won)			W	20,463			12,127
Diluted earnings per share (in won)				20,459			12,127


(In millions of won)
			Controlling interests														Non-controlling interests			Total equity
	*Note*		Share capital		Capital surplus and others			Retained earnings			Reserves			Sub-total			Non-controlling interests			Total equity
Balance, January 1, 2019(As reported)			W	44,639		655,084			22,120,355			(373,442	)		22,446,636			(122,075	)		22,324,561
Changes in accounting policies		3		—		—			(5,393	)		—			(5,393	)		—			(5,393	)

Balance, January 1, 2019(Restated)				44,639		655,084			22,114,962			(373,442	)		22,441,243			(122,075	)		22,319,168
Total comprehensive income (loss):
Profit (loss) for the period				—		—			888,698			—			888,698			(27,965	)		860,733
Other comprehensive income		13,21,22,28,32		—		—			(41,513	)		43,866			2,353			(1,344	)		1,009

				—		—			847,185			43,866			891,051			(29,309	)		861,742

Transactions with owners:
Annual dividends		35		—		—			(646,828	)		—			(646,828	)		(21,150	)		(667,978	)
Interim dividends		35		—		—			(71,870	)		—			(71,870	)		(8,650	)		(80,520	)
Share option		26		—		295			—			—			295			764			1,059
Interest on hybrid bonds		25		—		—			(14,766	)		—			(14,766	)		—			(14,766	)
Treasury shares sold		24		—		300,000			—			—			300,000			—			300,000
Changes in ownership in subsidiaries		12		—		51,102			—			—			51,102			47,127			98,229

				—		351,397			(733,464	)		—			(382,067	)		18,091			(363,976	)

Balance, December 31, 2019			W	44,639		1,006,481			22,228,683			(329,576	)		22,950,227			(133,293	)		22,816,934

Balance, January 1, 2020			W	44,639		1,006,481			22,228,683			(329,576	)		22,950,227			(133,293	)		22,816,934
Total comprehensive income:
Profit for the period				—		—			1,504,352			—			1,504,352			(3,814	)		1,500,538
Other comprehensive income (loss)		13,21,22,28,32		—		—			(4,992	)		369,715			364,723			97,099			461,822

				—		—			1,499,360			369,715			1,869,075			93,285			1,962,360

Transactions with owners:
Annual dividends		35		—		—			(658,228	)		—			(658,228	)		(5,771	)		(663,999	)
Interim dividends		35		—		—			(73,136	)		—			(73,136	)		—			(73,136	)
Share option		26		—		179			—			—			179			1,256			1,435
Interest on hybrid bonds		25		—		—			(14,766	)		—			(14,766	)		—			(14,766	)
Acquisition of treasury shares		24		—		(426,664	)		—			—			(426,664	)		—			(426,664	)
Changes in ownership in subsidiaries		12		—		97,207			—			—			97,207			696,872			794,079

				—		(329,278	)		(746,130	)		—			(1,075,408	)		692,357			(383,051	)

Balance, December 31, 2020			W	44,639		677,203			22,981,913			40,139			23,743,894			652,349			24,396,243


	Number of shares		Percentage of total shares issued (%)
SK Holdings Co., Ltd.		21,624,120		26.78
National Pension Service		8,853,906		10.97
Institutional investors and other shareholders		39,582,507		49.02
Kakao Co., Ltd.		1,266,620		1.57
Treasury shares		9,418,558		11.66

		80,745,711		100.00


(In millions of won)
	As of December 31, 2020						2020
Subsidiary	Total assets		Total liabilities		Total equity		Revenue		Profit (loss)
SK Telink Co., Ltd.	W	176,872		60,702		116,170		351,334		17,947
Eleven Street Co., Ltd.		999,225		542,534		456,691		545,556		(29,623	)
SK m&service Co., Ltd.		129,738		74,962		54,776		214,949		2,759
SK Broadband Co., Ltd.		5,765,808		3,119,489		2,646,319		3,713,021		150,694
K-net Culture and Contents Venture Fund		377,683		65,896		311,787		—		(44,737	)
PS&Marketing Corporation		470,521		257,809		212,712		1,427,218		(847	)
SERVICE ACE Co., Ltd.		96,258		71,890		24,368		206,612		2,905
SERVICE TOP Co., Ltd.		67,885		49,972		17,913		193,867		2,592
SK O&S Co., Ltd.		88,633		54,021		34,651		278,948		778
SK Planet Co., Ltd.		536,981		214,846		322,135		276,462		1,305
DREAMUS COMPANY(*1)		172,304		75,971		96,333		226,329		(22,176	)
SK Infosec Co., Ltd.(*2)		2,927,396		2,550,936		376,460		1,332,363		14,227
One Store Co., Ltd.		243,442		99,943		143,499		155,218		1,952
Home & Service Co., Ltd.		124,197		88,740		35,457		397,754		(20	)
SK stoa Co., Ltd.		107,982		79,339		28,643		268,693		17,154
FSK L&S Co., Ltd.(*3)		65,932		35,007		30,925		205,623		3,022
Incross Co., Ltd.(*4)		179,308		104,778		74,530		39,440		12,307


(In millions of won)
	As of December 31, 2019						2019
Subsidiary	Total assets		Total liabilities		Total equity		Revenue		Profit (loss)
SK Telink Co., Ltd.(*1)	W	265,725		77,378		188,347		363,627		3,010
Eleven Street Co., Ltd.		923,424		446,432		476,992		530,489		(5,077	)
SK m&service Co., Ltd.		109,699		58,605		51,094		218,848		2,448
SK Broadband Co., Ltd.		4,565,732		2,930,482		1,636,250		3,229,478		47,701
K-net Culture and Contents Venture Fund		151,493		21,163		130,330		—		(294	)
PS&Marketing Corporation		439,947		225,942		214,005		1,684,576		96
SERVICEACE Co., Ltd.		80,844		55,133		25,711		206,080		3,906
SERVICE TOP Co., Ltd.		66,932		50,060		16,872		193,377		2,230
SK O&S Co., Ltd.		96,446		62,086		34,360		281,634		1,724
SK Planet Co., Ltd.		595,838		278,438		317,400		275,544		1,214
DREAMUS COMPANY(*2)		171,586		53,669		117,917		196,961		(48,006	)
Life & Security Holdings Co., Ltd.(*3)		2,639,781		2,330,920		308,861		913,301		12,703
SK Infosec Co., Ltd. (*4)		158,424		61,644		96,780		270,423		18,520
One Store Co., Ltd.		236,329		93,625		142,704		135,116		(5,415	)
Home & Service Co., Ltd.		122,919		86,096		36,823		351,154		(427	)
SK stoa Co., Ltd.		70,754		59,207		11,547		196,063		875
FSK L&S Co., Ltd.(*5)		47,550		19,651		27,899		130,872		306
Incross Co., Ltd.(*6)		144,263		78,519		65,744		19,787		5,756


(In millions of won)
	As of January 1, 2019
Subsidiary	Total assets		Total liabilities		Total equity
SK Telink Co., Ltd.(*1)	W	493,972		107,565		386,407
Eleven Street Co., Ltd.		1,045,946		495,907		550,039
SK m&service Co., Ltd.		97,924		48,182		49,742
SK Broadband Co., Ltd.		4,657,113		3,072,891		1,584,222
K-net Culture and Contents Venture Fund		147,691		20,873		126,818
PS&Marketing Corporation		432,699		216,624		216,075
SERVICEACE Co., Ltd.		76,770		45,229		31,541
SERVICE TOP Co., Ltd.		74,452		49,400		25,052
SK O&S Co., Ltd.		81,773		42,257		39,516
SK Planet Co., Ltd.		753,630		436,501		317,129
DREAMUS COMPANY(*2)		204,479		44,620		159,859
Life & Security Holdings Co., Ltd.(*3)		2,611,838		2,261,456		350,382
SK Infosec Co., Ltd. (*4)		183,896		54,301		129,595
One Store Co., Ltd.		116,716		65,890		50,826
Home & Service Co., Ltd.		112,937		71,119		41,818
SK stoa Co., Ltd.		41,305		37,560		3,745


Subsidiary		Reason
Broadband Nowon Co., Ltd.		Acquired by the Parent Company
FSK L&S VIETNAM COMPANY LIMITED		Established by FSK L&S Co., Ltd.
Pan Asia Semiconductor Materials LLC		Established by Quantum Innovation Fund I
TMAP MOBILITY Co., Ltd.		Spin-off from the Parent Company


Subsidiary		Reason
ADT SECURITY Co., Ltd.		Merged into ADT CAPS Co., Ltd.
SK TELINK VIETNAM Co., Ltd.		Disposed
Life & Security Holdings Co., Ltd.		Merged into SK Infosec., Ltd.


(In millions of won)
	DREAMUS COMPANY			One Store Co., Ltd.			Eleven Street Co., Ltd.			SK Infosec *Co., Ltd.()**			Incross Co., Ltd.			SK Broadband Co., Ltd.
Ownership of non-controlling interests (%)		48.6			47.4			18.2			37.4			55.2			24.9

	As of December 31, 2020
Current assets	W	146,138			215,672			896,828			306,520			165,668			1,180,149
Non-current assets		26,166			27,770			102,397			2,620,876			13,640			4,585,659
Current liabilities		(72,091	)		(96,139	)		(508,427	)		(417,194	)		(101,065	)		(1,279,132	)
Non-current liabilities		(3,880	)		(3,804	)		(34,107	)		(2,133,742	)		(3,713	)		(1,840,357	)
Net assets		96,333			143,499			456,691			376,460			74,530			2,646,319
Fair value adjustment and others		—			—			(14,297	)		(1,227,442	)		—			—
Net assets on the consolidated financial statements		96,333			143,499			442,394			(850,982	)		74,530			2,646,319
Carrying amount of non-controlling interests		47,452			68,573			81,754			(318,267	)		46,010			665,020

	2020
Revenue	W	226,329			155,218			545,556			1,332,363			39,440			3,713,021
Profit (loss) for the period		(22,176	)		1,952			(29,623	)		14,227			12,307			150,694
Depreciation of the fair value adjustment and others		—			—			(492	)		(19,229	)		—			—
Profit (loss) for the period on the consolidated financial statements		(22,176	)		1,952			(30,115	)		(5,002	)		12,307			150,694
Total comprehensive income (loss)		(21,848	)		2,278			(23,037	)		(3,758	)		12,091			151,417
Profit (loss) attributable to non-controlling interests		(4,218	)		1,118			(5,565	)		(12,432	)		7,568			27,240
Net cash provided by operating activities	W	15,223			38,006			65,499			248,524			24,629			1,035,474
Net cash provided by (used in) investing activities		(2,471	)		(62,816	)		(71,644	)		(229,130	)		(2,284	)		(844,454	)
Net cash provided by (used in) financing activities		(2,329	)		(2,499	)		(18,059	)		11,134			(4,278	)		(93,259	)
Effects of exchange rate changes on cash and cash equivalents		(2,053	)		—			(385	)		(554	)		—			—
Net increase (decrease) in cash and cash equivalents		8,370			(27,309	)		(24,589	)		29,974			18,067			97,761
Dividends paid to non-controlling interests	W	—			—			5,000			20,028			—			—


	2019
	As reported		Adjustments			Restated
Operating revenue:	W	17,743,702		(2,986	)		17,740,716
Operating expenses:		16,633,722		(1,183	)		16,632,539
Operating profit		1,109,980		(1,803	)		1,108,177
Finance income		141,977		178			142,155
Finance costs		429,758		8,197			437,955
Other non-operating income		103,140		(409	)		102,731
Other non-operating expenses		212,227		(8,577	)		203,650
Gain relating to investments in subsidiaries, associates and joint ventures, net		449,543		—			449,543
Profit(loss) before income tax		1,162,655		(1,654	)		1,161,001
Income tax expense		300,713		(445	)		300,268
Profit (loss) for the year		861,942		(1,209	)		860,733
Basic earnings per share (in won)		12,144		(17	)		12,127
Diluted earnings per share (in won)		12,144		(17	)		12,127


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 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 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 OCI and are never reclassified to profit or loss.


		Useful lives (years)
Buildings and structures		15 ~ 40
Machinery		3 ~ 15
Other property and equipment		2 ~ 10


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


(In millions of won)
	Note		December 31, 2020		December 31, 2019		January 1, 2019
Assets
Current Assets:
Cash and cash equivalents		34,35	W	329,208		497,282		877,823
Short-term financial instruments		5,34,35		516,000		234,000		99,000
Short-term investment securities		9,34,35		31,854		31,920		47,849
Accounts receivable - trade, net		6,34,35,36		1,503,552		1,479,971		1,354,260
Short-term loans, net		6,34,35,36		89,280		57,751		54,336
Accounts receivable - other, net		3,6,34,35,36,37		434,713		506,642		524,236
Contract assets		8,35		8,388		7,173		1,689
Prepaid expenses		3,7		2,052,515		1,959,122		1,607,162
Guarantee deposits		6,34,35,36		51,069		73,345		—
Inventories, net				—		70,528		—
Prepaid income taxes		31		8,704		26,253		—
Derivative financial assets		19,34,35,38		5,181		11,125		22,079
Advanced payments and others		6,34,35		16,651		43,353		15,657

				5,047,115		4,998,465		4,604,091

Non-Current Assets:
Long-term financial instruments		5,34,35		354		382		382
Long-term investment securities		9,34,35		983,688		510,633		410,672
Investments in subsidiaries, associates and joint ventures		10,39		11,357,504		10,578,158		10,188,914
Property and equipment, net		3,11,12,36		9,157,548		9,052,709		7,705,308
Goodwill		13		1,306,236		1,306,236		1,306,236
Intangible assets, net		14		2,665,083		3,461,152		4,008,590
Long-term loans, net		6,34,35,36		6,518		7,474		7,236
Long-term accounts receivable - other		3,6,34,35,37		348,335		335,574		284,324
Long-term contract assets		8,35		22,844		23,724		5,842
Long-term prepaid expenses		3,7		903,961		1,134,737		745,268
Guarantee deposits		6,34,35,36		110,555		108,141		184,887
Long-term derivative financial assets		19,34,35,38		76,461		99,998		50,805
Defined benefit assets		18		—		—		31,834
Other non-current assets				249		249		249

				26,939,336		26,619,167		24,930,547

			W	31,986,451		31,617,632		29,534,638


(In millions of won)					Capital surplus and others															Retained earnings			Reserves
	Note		Share capital		Paid-in surplus		Treasury shares			Hybrid bonds		Share option		Other			Sub-total			Retained earnings			Reserves			Total equity
Balance, Januray 1, 2019 (As reported)			W	44,639		2,915,887		(1,979,475	)		398,759		1,007		(920,854	)		415,324			16,442,560			(40,265	)		16,862,258
Changes in Accounting Policies		3		—		—		—			—		—		—			—			(5,393	)		—			(5,393	)

Balance, Januray 1, 2019 (Restated)			W	44,639		2,915,887		(1,979,475	)		398,759		1,007		(920,854	)		415,324			16,437,167			(40,265	)		16,856,865
Total comprehensive Income (loss):
Profit for the period				—		—		—			—		—		—			—			979,891			—			979,891
Other comprehensive income (loss)		18,19,26,30		—		—		—			—		—		—			—			(10,647	)		(9,041	)		(19,688	)

				—		—		—			—		—		—			—			969,244			(9,041	)		960,203

Transactions with owners:
Annual dividends		33		—		—		—			—		—		—			—			(646,828	)		—			(646,828	)
Interim dividends		33		—		—		—			—		—		—			—			(71,870	)		—			(71,870	)
Share option		23		—		—		—			—		295		—			295			—			—			295
Interest on hybrid bonds		22		—		—		—			—		—		—			—			(14,766	)		—			(14,766	)
Treasury shares sold		21		—		—		282,478			—		—		17,522			300,000			—			—			300,000

				—		—		282,478			—		295		17,522			300,295			(733,464	)		—			(433,169	)

Balance, December 31, 2019			W	44,639		2,915,887		(1,696,997	)		398,759		1,302		(903,332	)		715,619			16,672,947			(49,306	)		17,383,899

Balance, January 1, 2020			W	44,639		2,915,887		(1,696,997	)		398,759		1,302		(903,332	)		715,619			16,672,947			(49,306	)		17,383,899
Total comprehensive Income (loss):
Profit for the period				—		—		—			—		—		—			—			758,792			—			758,792
Other comprehensive income (loss)		18,19,26,30		—		—		—			—		—		—			—			(969	)		380,751			379,782

				—		—		—			—		—		—			—			757,823			380,751			1,138,574

Transactions with owners:
Annual dividends		33		—		—		—			—		—		—			—			(658,228	)		—			(658,228	)
Interim dividends		33		—		—		—			—		—		—			—			(73,136	)		—			(73,136	)
Share option		23		—		—		—			—		179		—			179			—			—			179
Interest on hybrid bonds		22		—		—		—			—		—		—			—			(14,766	)		—			(14,766	)
Acquisition of treasury shares		21		—		—		(426,664	)		—		—		—			(426,664	)		—			—			(426,664	)

				—		—		(426,664	)		—		179		—			(426,485	)		(746,130	)		—			(1,172,615	)

Balance, December 31, 2020			W	44,639		2,915,887		(2,123,661	)		398,759		1,481		(903,332	)		289,134			16,684,640			331,445			17,349,858


(In millions of won)	2019
	As reported		Adjustments			Restated
Operating revenue	W	11,416,215		5,127			11,421,342
Operating expenses		10,466,106		3,433			10,469,539

Operating profit		950,109		1,694			951,803
Finance income		615,589		(18	)		615,571
Finance costs		270,795		9,452			280,247
Other non-operating income		78,212		(1,284	)		76,928
Other non-operating expenses		119,075		(8,448	)		110,627
Loss on investments in subsidiaries, associates and joint ventures, net		68,550		—			68,550

Profit before income tax	W	1,185,490		(612	)		1,184,878
Income tax expense		205,152		(165	)		204,987

Profit for the year	W	980,338		(447	)		979,891
Earnings per share:
Basic earnings per share (in won)	W	13,399		(6	)		13,393
Diluted earnings per share (in won)		13,399		(6	)		13,393


(In millions of won)	2019
	As reported			Adjustments			Restated
Cash flows from operating activities	W	3,115,408			75,333			3,190,741
Cash flows from investing activities		(2,984,059	)		(8,614	)		(2,992,673	)
Cash flows from financing activities		(511,890	)		(66,719	)		(578,609	)


		Useful lives (years)
Buildings and structures		15, 30
Machinery		3 ~ 8
Other property and equipment		4 ~10


		Useful lives (years)
Frequency usage rights		5 ~ 13
Land usage rights		5
Industrial rights		5, 10
Facility usage rights		10, 20
Other		3 ~ 20


SK TELECOM CO., LTD.
(Registrant)

By:		/s/ Joong Suk Oh
(Signature)
Name:		Joong Suk Oh
Title:		Senior Vice President