Sk Telecom Co Ltd 6-K, filed Jun 15, 2026
Sk Telecom Co Ltd (SKM)
About this 6-K
Sk Telecom Co Ltd filed this 6-K on June 15, 2026.
Table of Contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
FOR THE MONTH OF June 2026
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 ☐
Table of Contents
QUARTERLY BUSINESS REPORT
(From January 1, 2026 to March 31, 2026)
THIS IS A SUMMARY OF THE QUARTERLY BUSINESS REPORT ORIGINALLY PREPARED IN KOREAN WHICH IS IN SUCH FORM AS REQUIRED BY THE KOREAN FINANCIAL SERVICES COMMISSION.
IN THE TRANSLATION PROCESS, SOME PARTS OF THE REPORT WERE REFORMATTED, REARRANGED OR SUMMARIZED FOR THE CONVENIENCE OF READERS.
ALL REFERENCES TO THE “COMPANY” SHALL MEAN SK TELECOM CO., LTD. AND, UNLESS THE CONTEXT OTHERWISE REQUIRES, ITS CONSOLIDATED SUBSIDIARIES. REFERENCES TO “SK TELECOM” SHALL MEAN SK TELECOM CO., LTD., BUT SHALL NOT INCLUDE ITS CONSOLIDATED SUBSIDIARIES.
UNLESS EXPRESSLY STATED OTHERWISE, ALL INFORMATION CONTAINED HEREIN IS PRESENTED ON A CONSOLIDATED BASIS IN ACCORDANCE WITH THE INTERNATIONAL FINANCIAL REPORTING STANDARDS ADOPTED FOR USE IN KOREA (“K-IFRS”) WHICH DIFFER IN CERTAIN RESPECTS FROM GENERALLY ACCEPTED ACCOUNTING PRINCIPLES IN CERTAIN OTHER COUNTRIES, INCLUDING THE UNITED STATES. THE COMPANY HAS MADE NO ATTEMPT TO IDENTIFY OR QUANTIFY THE IMPACT OF THESE DIFFERENCES.
Table of Contents
| I. | COMPANY OVERVIEW |
Omitted in quarterly reports in accordance with applicable Korean disclosure rules. For more information, please refer to the Company’s annual business report for the year ended December 31, 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. (“PS&Marketing”) | Sale of fixed-line and wireless telecommunications products through wholesale, retail and online distribution channels
| |||
| SK O&S Co., Ltd. (“SK O&S”) | Maintenance of base stations
| |||
| Service Ace Co., Ltd. (“Service Ace”) | Management and operation of customer centers
| |||
| Fixed-line | SK Broadband Co., Ltd. (“SK Broadband”) | High-speed Internet, TV, telephone, commercial data and other fixed-line services and management of the transmission system for online digital contents
Various media-related services, such as channel management services including video-on-demand services
| ||
| Home & Service Co., Ltd. (“Home&Service”) | System maintenance of high-speed Internet, Internet protocol TV (“IPTV”) and fixed-line services
| |||
| SK Telink Co., Ltd. (“SK Telink”) | International wireless direct-dial “00700” services and mobile virtual network operator (“MVNO”) business
| |||
| Other business | SK stoa Co., Ltd. (“SK Stoa”) | Operation of commercial retail data broadcasting channel services
| ||
| Atlas Investment | Investments
| |||
| SK Telecom Innovation Fund, L.P. | Investments
| |||
| SAPEON Inc. | Manufacture of non-memory and other electronic integrated circuits
| |||
| Astra AI Infra LLC | Investments
| |||
| SK Telecom Americas, Inc. | Information collection and consulting services |
[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.
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In order to strengthen its sales channels, the Company has been offering a variety of fixed-line and wireless telecommunications convergence products through its subsidiary, PS&Marketing. PS&Marketing provides differentiated service to customers through the establishment of new sales channels and product development. Additionally, SK O&S, the Company’s subsidiary responsible for the operation of the Company’s networks, including base stations and related transmission and power facilities, provides customers with quality network services and provides the Company with technological know-how in network operations.
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 has reached its maturation stage and continues to maintain a gradual upward trend. The Company recorded 17.80 million subscribers as of March 31, 2026, of which 5G subscribers accounted for 81%. 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 by enhancing its fundamental competitive strengths, including product and channel realignment and the optimization of operations centered on customer lifetime value.
| 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 information and communications technology (“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 artificial intelligence (“AI”) are expected to accelerate the introduction of new services and the growth of Internet-of-Things (“IoT”)-based business-to-business (“B2B”) businesses.
| (Unit: in 1,000 persons) | ||||||||||||||
| Classification |
As of March 31, 2026 |
As of December 31, | ||||||||||||
| 2025 | 2024 | |||||||||||||
| Number of subscribers |
SK Telecom |
30,959 | 30,853 | 31,786 | ||||||||||
| Others (KT, LG U+) |
41,341 | 41,466 | 38,360 | |||||||||||
| MVNO |
20,155 | 19,885 | 17,825 | |||||||||||
| Total |
92,455 | 92,203 | 87,971 | |||||||||||
| * | Source: Wireless telecommunications service data from the Ministry of Science and ICT (“MSIT”) as of February 28, 2026. |
| 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:
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(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 March 31, 2026 |
As of December 31, | ||||||||||
| 2025 | 2024 | |||||||||||
| Mobile communication services |
42.8 | 42.7 | 45.3 | |||||||||
| * | Source: Wireless telecommunications service data from the MSIT as of February 28, 2026. |
[Fixed-line Business]
| A. | Overview |
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 three months ended March 31, 2026, SK Broadband recorded Won 1.15 trillion in revenue on a consolidated basis, which represented a 3.2% increase from Won 1.11 trillion for the three months ended March 31, 2025. Such increase was primarily attributable to the growth of SK Broadband’s high-speed Internet business resulting from an increase in the number of subscribers and the growth of its B2B business primarily focused on new data centers.
For the three months ended March 31, 2026, the media business segment recorded Won 0.47 trillion in revenue, which represented a 1.3% decrease compared to the three months ended March 31, 2025. For the three months ended March 31, 2026, the fixed-line business segment recorded Won 0.68 trillion in revenue, which represented a 6.7% increase compared to the three months ended March 31, 2025.
| 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.
SK Broadband engages in the fixed-line TV broadcasting business, which is defined as the business of managing and operating fixed-line TV broadcasting stations (including their facilities and employees for the purpose of providing multi-channel broadcasting) and providing broadcasts through transmission and line facilities. The Internet multimedia broadcasting refers to the broadcasting of programs through a combination of various contents including data, video, voice, sound and/or e-commerce, including real-time broadcasting, while guaranteeing a consistent service quality through a bidirectional Internet protocol using a broadband integrated information network.
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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, due to the government’s restrictive licensing policies aimed at efficient resource allocation, the Korean fixed-line services industry is marked by a high level of market concentration. In the fixed-line and wireless services markets, an oligopolistic structure has been established, centered around the Company (including SK Broadband), KT and LG U+. However, with the development of faster and more stable telecommunications technologies, integrated convergence products combining fixed-line and wireless communications with broadcasting have become the market standard. Consequently, competition among operators is now centered on providing high-quality services and ensuring customer satisfaction.
The high-speed Internet market continues to grow as mobile data traffic surges due to the expanding use of mobile devices for activities such as AI utilization, video streaming and online gaming. In particular, Wi-Fi services, which provide a stable and fast communication environment without imposing significant additional costs despite increased usage, have become essential communication services. Consequently, demand for Giga Internet, necessary for providing these services, is expanding, and related businesses are growing steadily.
In the pay TV market, competition is shifting from a focus on traditional channels and platforms to a content-centric model due to the expansion of global OTT services. Consequently, the Company is pursuing content differentiation to reflect the rapid changes in viewers’ content consumption preferences and usage patterns, and is seeking new growth opportunities in the home platform sector by providing personalized services utilizing AI technology, smart TVs and set-top boxes.
In the enterprise business market, growth opportunities are expanding, particularly in new areas such as AI data centers. Furthermore, to respond to continually increasing market demand and strengthen business competitiveness, the Company is focusing on securing core infrastructure, such as data centers and dedicated lines, and continues its efforts to establish a stable revenue base.
| C. | Growth Potential |
| (Unit: in persons) | ||||||||||||||
| Classification |
As of March 31, 2026*** |
As of December 31, | ||||||||||||
| 2025 | 2024 | |||||||||||||
| Fixed-line Subscribers* |
High-speed Internet |
25,331,849 | 25,233,811 | 24,721,782 | ||||||||||
| Fixed-line telephone (including Voice over Internet Protocol (“VoIP”))** |
17,416,422 | 17,581,886 | 18,347,951 | |||||||||||
| IPTV |
21,310,250 | 21,310,250 | 21,190,908 | |||||||||||
| Cable TV |
12,273,098 | 12,273,098 | 12,342,797 | |||||||||||
| * | Source: MSIT website. |
| ** | With respect to fixed-line telephone, the number of subscribers was calculated based on the number of fixed-line and VoIP subscribers of the Company, KT and LG U+. |
| *** | High-speed Internet and fixed-line telephone subscribers represent the number of subscribers as of February 28, 2026, while IPTV and cable TV subscribers represent the average number of subscribers in the second half of 2024. |
| D. | Cyclical Nature and Seasonality |
There is little difference among the services provided by operators of high-speed Internet, fixed-line telephone and broadcasting services. Such services, which demonstrate characteristics of essential public utilities, are subject to a subscriber-based business model, and are not sensitive to cyclical economic changes. Due to the low income elasticity of telecommunications services, the overall telecommunications market is not expected to be particularly affected by an economic downturn.
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| E. | Domestic and Overseas Market Conditions |
Set forth below is the historical market share of SK Broadband.
| (Unit: in percentages) | ||||||||||||
| Classification |
As of March 31, 2026*** |
As of December 31, | ||||||||||
| 2025 | 2024 | |||||||||||
| High-speed Internet (including resales)* |
28.8 | 28.7 | 28.9 | |||||||||
| Fixed-line telephone (including VoIP)* |
18.6 | ** | 18.6 | 18.3 | ||||||||
| IPTV* |
31.8 | 31.8 | 31.9 | |||||||||
| Cable TV* |
22.9 | 22.9 | 22.8 | |||||||||
| * | Source: MSIT website. |
| ** | With respect to fixed-line telephone, the market share was calculated based on market shares among SK Broadband, KT and LG U+ and is based on the number of fixed-line and VoIP subscribers. |
| *** | Market shares for the high-speed Internet and fixed-line telephone markets are based on the market shares as of February 28, 2026, and market shares for the IPTV and cable TV markets are based on the average number of subscribers in the second half of 2024. |
SK Broadband is engaged in a number of business areas including high-speed Internet, home telephone, corporate business, IPTV and cable TV pursuant to the relevant communications regulations such as the Telecommunications Business Act, the Internet Multimedia Broadcast Services Act and the Broadcasting Act. In each of its principal business areas, SK Broadband 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. The basic telecommunications business is characterized by high barriers to entry, as it requires authorization from the Minister of the MSIT under the Telecommunications Business Act, and an oligopolistic structure has been established, comprising SK Broadband, KT and LG U+.
[Other Businesses]
| A. | Other businesses |
SK Stoa operates the commercial retail data broadcasting channel business, offering an interactive service that integrates television home shopping and data home shopping services. Such integrated service allows television viewers to organize various product categories on the television screen and select and purchase desired products using a television remote control or mobile device, unlike traditional home shopping services that only allowed for real-time purchase through the relevant broadcast.
2. Key Financial Data by Business Line
| A. | Assets |
| (Unit: in millions of Won and percentages) | ||||||||||||||||||||||||
| Classification |
As of March 31, 2026 |
As of December 31, | ||||||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||||||||
| Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||||
| Wireless |
25,438,212 | 74 | % | 25,731,253 | 75 | % | 25,154,898 | 75 | % | |||||||||||||||
| Fixed-line |
7,398,720 | 22 | % | 7,158,666 | 21 | % | 7,174,920 | 21 | % | |||||||||||||||
| Other |
1,400,517 | 4 | % | 1,392,466 | 4 | % | 1,276,546 | 4 | % | |||||||||||||||
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| Subtotal |
34,237,450 | 100 | % | 34,282,385 | 100 | % | 33,606,364 | 100 | % | |||||||||||||||
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| Consolidation Adjustment |
(4,215,492 | ) | — | (4,174,602 | ) | — | (3,091,111 | ) | — | |||||||||||||||
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| Total |
30,021,958 | — | 30,107,783 | — | 30,515,254 | — | ||||||||||||||||||
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| B. | Revenue |
| (Unit: in millions of Won and percentages) | ||||||||||||||||||||||||
| Classification |
For the three months ended March 31, 2026 |
For the year ended December 31, | ||||||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||||||||
| Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||||
| Wireless |
3,268,788 | 74 | % | 12,552,543 | 73 | % | 13,318,213 | 74 | % | |||||||||||||||
| Fixed-line |
1,049,235 | 24 | % | 4,191,113 | 25 | % | 4,075,412 | 23 | % | |||||||||||||||
| Other |
74,289 | 2 | % | 355,557 | 2 | % | 546,984 | 3 | % | |||||||||||||||
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| Total |
4,392,312 | 100 | % | 17,099,213 | 100 | % | 17,940,609 | 100 | % | |||||||||||||||
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| C. | Operating Profit |
| (Unit: in millions of Won and percentages) | ||||||||||||||||||||||||
| Classification |
For the three months ended March 31, 2026 |
For the year ended December 31, | ||||||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||||||||
| Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||||
| Wireless |
414,888 | 77 | % | 817,941 | 75 | % | 1,529,971 | 84 | % | |||||||||||||||
| Fixed-line |
120,700 | 22 | % | 308,372 | 28 | % | 366,517 | 20 | % | |||||||||||||||
| Other |
2,652 | 1 | % | (30,551 | ) | (3 | )% | (64,929 | ) | (4 | )% | |||||||||||||
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| Subtotal | 538,240 | 100 | % | 1,095,762 | 100 | % | 1,831,559 | 100 | % | |||||||||||||||
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| Consolidation Adjustment |
(649 | ) | — | (22,547 | ) | — | (8,150 | ) | — | |||||||||||||||
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| Total |
537,591 | — | 1,073,215 | — | 1,823,409 | — | ||||||||||||||||||
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3. Updates on Major Products and Services
| (Unit: in millions of Won and percentages) | ||||||||||||||||||||||||||||||
| Business |
Major Companies |
Items |
Major |
For the three months ended March 31, 2026 |
For the year ended December 31, | |||||||||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||||||||||||||
| Consolidated Sales Amount |
Ratio | Consolidated Sales Amount |
Ratio | Consolidated Sales Amount |
Ratio | |||||||||||||||||||||||||
| Wireless |
SK Telecom, Service Ace, SK O&S, etc. |
Mobile communications service, wireless data service, ICT service and others |
T, 5GX, T Plan and others | 3,268,788 | 74 | % | 12,552,543 | 73 | % | 13,318,213 | 74 | % | ||||||||||||||||||
| Fixed-line |
SK Broadband, SK Telink, |
Fixed-line phone, high-speed Internet, data and network lease service and others |
B tv, 00700 international call, 7mobile and others | 1,049,235 | 24 | % | 4,191,113 | 25 | % | 4,075,412 | 23 | % | ||||||||||||||||||
| Other |
SK Stoa, etc. | Commercial retail data broadcasting channel service and others | Stoa ON | 74,289 | 2 | % | 355,557 | 2 | % | 546,984 | 3 | % | ||||||||||||||||||
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| Total |
4,392,312 | 100 | % | 17,099,213 | 100 | % | 17,940,609 | 100 | % | |||||||||||||||||||||
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4. Price Trends for Major Products
[Wireless Business]
As of March 31, 2026, 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 2.5G” provides 2.5 GB of data and unlimited voice calls at Won 43,000 per month (including value-added tax). Among the 5G-based plans, the “Basic” plan provides 11 GB of data and unlimited voice calls at Won 49,000 per month (including value-added tax). In March 2024, the Company launched the “Compact” plan, which provides 5G data at Won 39,000 per month (including value-added tax). In October 2025, the Company launched six types of subscription plans for “air”, our digital communication service available exclusively for unlocked devices. The Company plans to continue to restructure its subscription plans to expand choices for customers and 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]
The monthly subscription fees for the services offered by SK Broadband are as follows:
| - | IPTV (media business segment): from Won 11,000 (B tv Mini) to Won 50,600 (B tv All + Catch On + major networks) under no fixed-term contract |
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| - | Cable TV (based on Suwon broadcasting) direct cable TV: from Won 4,400 or less (B tv Cable 20) to Won 16,500 or less (B tv Cable 90) under no fixed-term contract, and from Won 3,520 or less (B tv Cable 20) to Won 13,200 (B tv Cable 90) under a three-year contract |
| - | Digital cable TV: from Won 13,200 or less (B tv Cable 100) to Won 26,400 (B tv Cable 200) under no fixed-term contract, and from Won 10,560 (B tv Cable 100) to Won 21,120 (B tv Cable 200) under a three-year contract |
| - | Technology-neutral service: from Won 13,200 (B tv Pop 100) to Won 33,990 (B tv Pop 230+) under no fixed-term contract, and from Won 7,700 (B tv Pop 100) to Won 20,900 (B tv Pop 230+) under a three-year contract |
| - | High-speed Internet service (fixed-line business segment): from Won 30,800 (Speed Internet) to Won 104,500 (Giga Premium×10) under no fixed-term contract, and from Won 22,000 (Speed Internet) to Won 82,500 (Giga Premium×10) under a three-year contract |
| - | Bundled products that combine high-speed Internet and IPTV services: from Won 33,000 (Speed Internet + B tv Economy) to Won 111,100 (Giga Premium×10 + B tv All + Catch On + major networks) under a three-year contract |
The above fees may vary depending on the conditions for subscription, including services provided, contract period and bundled products.
SK Broadband is preparing a variety of new rate plans for 2026. In January 2026, SK Broadband launched the “Giga Wi-Fi 7” plan, which utilizes the next-generation wireless standard, and offers a stable wireless Internet environment with transmission speeds up to twice as fast as the existing “Giga Wi-Fi 6” plan and minimizes latency and disconnections through multi-link operation (“MLO”) technology. In addition, a minimalist design was applied to better harmonize with interior spaces, and the plan is offered at a competitive rate of Won 27,500 per month for 1 Gbps Internet when bundled with a wireless plan.
In February 2026, SK Broadband launched the “AI 5 Set-Top Box,” which features on-device AI powered by a neural processing unit (“NPU”). The AI 5 Set-Top Box offers functions that optimize image quality and color tones for each scene and improve voice clarity, while incorporating a minimalist design and an ultra-low-power design with standby power of less than 1W. It is available for Won 7,700 per month based on a three-year contract. Subscribers can also choose the “AI 5 Set-Top Box Care” package, which offers a reduced monthly fee of Won 5,500, as well as waivers on service call fees and compensation charges for damages, thereby enhancing customer convenience and satisfaction.
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 and Future Investment Plan |
| (Unit: in billions of Won) | ||||||||||||
| Purpose of investment |
Subject of |
Investment period |
Expected investment amount |
Amount already invested |
Investment effect | |||||||
| Upgrade/ New installation |
Network, systems and others | Three months ended March 31, 2026 | To be determined | 37 | Upgrades to the existing services and expanded provision of network services including 5G | |||||||
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[Fixed-line Business]
| A. | Investment in Progress and Future Investment Plan |
| (Unit: in billions of Won) | ||||||||||
| Purpose of investment |
Subject of investment |
Investment period |
Amount already |
Future investment |
Investment effect | |||||
| Coverage expansion, upgrade of media platform |
Network, systems, Internet data center and others | Three months ended March 31, 2026 | 99 | To be determined |
Securing subscriber network and equipment; quality and system improvement | |||||
| * | Represents investments by SK Broadband on a separate basis. |
6. Revenues
| (Unit: in millions of Won) | ||||||||||||||||||||
| Business |
Sales type | Item |
For the three months ended March 31, 2026 |
For the year ended December 31, 2025 |
For the year ended December 31, 2024 |
|||||||||||||||
| Wireless |
Services | Mobile communications service, wireless data service, ICT service and others | Export | 46,559 | 196,249 | 212,235 | ||||||||||||||
| Domestic | 3,222,229 | 12,356,294 | 13,105,978 | |||||||||||||||||
| Subtotal | 3,268,788 | 12,552,543 | 13,318,213 | |||||||||||||||||
| Fixed-line |
Services | Fixed-line phone, high-speed Internet, data and network lease line service and others |
Export | 52,760 | 205,494 | 213,815 | ||||||||||||||
| Domestic | 996,475 | 3,985,619 | 3,861,597 | |||||||||||||||||
| Subtotal | 1,049,235 | 4,191,113 | 4,075,412 | |||||||||||||||||
| Other |
Services | Commercial retail data broadcasting channel services and others | Export | — | — | — | ||||||||||||||
| Domestic | 74,289 | 355,557 | 546,984 | |||||||||||||||||
| Subtotal | 74,289 | 355,557 | 546,984 | |||||||||||||||||
| Total |
Export | 99,319 | 401,744 | 426,050 | ||||||||||||||||
| Domestic | 4,292,993 | 16,697,469 | 17,514,559 | |||||||||||||||||
| Total | 4,392,312 | 17,099,213 | 17,940,609 | |||||||||||||||||
| (Unit: in millions of Won) | ||||||||||||||||||||||||
| For the three months ended March 31, 2026 |
Wireless | Fixed-line | Other | Sub total | Consolidation adjustment |
After consolidation |
||||||||||||||||||
| Total sales |
3,640,613 | 1,361,902 | 77,193 | 5,079,708 | (687,396 | ) | 4,392,312 | |||||||||||||||||
| Internal sales |
371,825 | 312,667 | 2,904 | 687,396 | (687,396 | ) | — | |||||||||||||||||
| External sales |
3,268,788 | 1,049,235 | 74,289 | 4,392,312 | — | 4,392,312 | ||||||||||||||||||
| Operating profit (loss) |
414,888 | 120,700 | 2,652 | 538,240 | (649 | ) | 537,591 | |||||||||||||||||
| Finance profit (loss) |
|
(61,831 | ) | |||||||||||||||||||||
| Loss from investments in subsidiaries, associates and joint ventures |
|
(15,131 | ) | |||||||||||||||||||||
| Other non-operating profit (loss) |
|
4,938 | ||||||||||||||||||||||
| Profit before income tax |
|
465,567 | ||||||||||||||||||||||
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 March 31, 2026 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 (face value of US$400,000,000) | Foreign currency risk | Cross currency swap | Morgan Stanley and four other banks | July 20, 2007 – July 20, 2027 | |||||
| June 28, 2023 |
Fixed rate foreign currency denominated bonds (face value of US$300,000,000) | Foreign currency risk | Cross currency swap | Citibank, Shinhan Bank, KDB, J.P. Morgan | June 28, 2023 – June 28, 2028 | |||||
| October 7, 2024 |
Floating rate Won denominated borrowings (face value of Won 200 billion) | Interest rate risk | Interest rate swap | DBS Bank Ltd. | October 10, 2024 – October 8, 2026 | |||||
| May 28, 2025 |
Floating rate foreign currency denominated bonds (face value of US$300,000,000) | Foreign currency risk and interest rate risk | Cross currency interest rate swap | DBS Bank Ltd. | May 28, 2025 – May 26, 2028 |
9
Table of Contents
[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 US$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 three months ended March 31, 2026 |
For the year ended December 31, 2025 |
For the year ended December 31, 2024 |
Remarks | ||||||||||||||
| Raw material |
1 | 27 | 492 | — | ||||||||||||||
| Labor |
26,213 | 116,856 | 134,508 | — | ||||||||||||||
| Depreciation |
32,117 | 123,083 | 134,989 | — | ||||||||||||||
| Commissioned service |
10,376 | 49,033 | 61,588 | — | ||||||||||||||
| Others |
22,177 | 66,773 | 61,267 | — | ||||||||||||||
| Total R&D costs |
90,885 | 355,772 | 392,844 | — | ||||||||||||||
| Government Subsidies |
— | — | — | — | ||||||||||||||
| Accounting |
Sales and administrative expenses |
86,607 | 338,841 | 378,079 | — | |||||||||||||
| Development costs (Intangible assets) |
4,279 | 16,931 | 14,765 | — | ||||||||||||||
| R&D cost / sales amount ratio |
2.07 | % | 2.08 | % | 2.19 | % | — | |||||||||||
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 March 31, 2026, the registered patents and trademarks held by the Company included 2,875 Korean-registered patents, 1,808 foreign-registered patents and 746 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.
10
Table of Contents
[SK Broadband]
As of March 31, 2026, SK Broadband held 193 Korean-registered patents and 38 foreign-registered patents (including those held jointly with other companies). It also holds 245 Korean-registered trademarks. 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.
11
Table of Contents
| 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 March 31, 2026, December 31, 2025 and December 31, 2024 and for the three months ended March 31, 2026 and for the years ended December 31, 2025 and 2024. The Company’s interim consolidated financial statements as of March 31, 2026 and December 31, 2025 and for the three months ended March 31, 2026 and 2025, which are prepared in accordance with K-IFRS, are attached hereto.
| (Unit: in millions of Won except number of companies) |
| |||||||||||
| As of March 31, 2026 |
As of December 31, 2025 |
As of December 31, 2024 |
||||||||||
| Assets |
||||||||||||
| Current Assets |
7,212,945 | 6,727,130 | 7,476,682 | |||||||||
• Cash and Cash Equivalents |
1,474,680 | 1,490,024 | 2,023,721 | |||||||||
• Accounts Receivable – Trade, net |
1,958,799 | 1,918,502 | 1,989,306 | |||||||||
• Accounts Receivable – Other, net |
530,503 | 346,326 | 369,192 | |||||||||
• Others |
3,248,963 | 2,972,278 | 3,094,463 | |||||||||
| Non-Current Assets |
22,809,013 | 23,380,653 | 23,038,573 | |||||||||
• Long-Term Investment Securities |
3,287,690 | 3,188,572 | 1,877,922 | |||||||||
• Investments in Associates and Joint Ventures |
2,271,228 | 2,238,470 | 2,341,827 | |||||||||
• Property and Equipment, net |
11,348,717 | 11,902,173 | 12,617,394 | |||||||||
• Goodwill |
2,072,493 | 2,072,493 | 2,072,493 | |||||||||
• Intangible Assets, net |
1,550,235 | 1,710,620 | 2,194,871 | |||||||||
• Others |
2,278,650 | 2,268,325 | 1,934,066 | |||||||||
|
|
|
|
|
|
|
|||||||
| Total Assets |
30,021,958 | 30,107,783 | 30,515,255 | |||||||||
|
|
|
|
|
|
|
|||||||
| Liabilities |
||||||||||||
| Current Liabilities |
6,088,614 | 6,529,775 | 9,224,278 | |||||||||
| Non-Current Liabilities |
10,585,727 | 10,622,716 | 9,463,343 | |||||||||
|
|
|
|
|
|
|
|||||||
| Total Liabilities |
16,674,341 | 17,152,491 | 18,687,621 | |||||||||
|
|
|
|
|
|
|
|||||||
| Equity |
||||||||||||
| Equity Attributable to Owners of the Parent Company |
13,284,851 | 12,863,103 | 11,698,627 | |||||||||
| Share Capital |
30,493 | 30,493 | 30,493 | |||||||||
| Capital Surplus (Deficit) and Other Capital Adjustments |
(13,850,352 | ) | (12,131,340 | ) | (11,954,936 | ) | ||||||
| Retained Earnings |
24,935,298 | 22,938,268 | 22,976,127 | |||||||||
| Reserves |
2,169,412 | 2,025,682 | 646,943 | |||||||||
| Non-controlling Interests |
62,766 | 92,189 | 129,007 | |||||||||
|
|
|
|
|
|
|
|||||||
| Total Equity |
13,347,617 | 12,955,292 | 11,827,634 | |||||||||
|
|
|
|
|
|
|
|||||||
| Total Liabilities and Equity |
30,021,958 | 30,107,783 | 30,515,255 | |||||||||
|
|
|
|
|
|
|
|||||||
| (Unit: in millions of Won except per share data and number of consolidated subsidiaries) |
| |||||||||||
| For the three months ended March 31, 2026 |
For the year ended December 31, 2025 |
For the year ended December 31, 2024 |
||||||||||
| Operating Revenue |
4,392,312 | 17,099,213 | 17,940,609 | |||||||||
| Operating Profit |
537,591 | 1,073,215 | 1,823,409 | |||||||||
| Profit Before Income Tax |
465,567 | 722,261 | 1,761,765 | |||||||||
| Profit for the Period |
316,415 | 375,084 | 1,387,095 | |||||||||
| Profit for the Period Attributable to Owners of the Parent Company |
322,389 | 408,410 | 1,250,155 | |||||||||
| Profit for the Period Attributable to Non-controlling Interests |
(5,974 | ) | (33,326 | ) | 136,940 | |||||||
| Basic Earnings Per Share (Won) |
1,490 | 1,825 | 5,780 | |||||||||
| Diluted Earnings Per Share (Won) |
1,488 | 1,825 | 5,765 | |||||||||
|
|
|
|
|
|
|
|||||||
| Total Number of Consolidated Subsidiaries |
19 | 19 | 21 | |||||||||
|
|
|
|
|
|
|
|||||||
12
Table of Contents
| B. | Summary Financial Information (Separate) |
Below is the summary separate financial information of the Company as of March 31, 2026, December 31, 2025 and December 31, 2024 and for the three months ended March 31, 2026 and for the years ended December 31, 2025 and 2024. The Company’s interim separate financial statements as of March 31, 2026 and December 31, 2025 and for the three months ended March 31, 2026 and 2025, which are prepared in accordance with K-IFRS, are attached hereto.
| (Unit: in millions of Won) | ||||||||||||
| As of March 31, 2026 | As of December 31, 2025 | As of December 31, 2024 | ||||||||||
| Assets |
||||||||||||
| Current Assets |
5,027,178 | 4,932,557 | 5,242,405 | |||||||||
• Cash and Cash Equivalents |
502,360 | 771,861 | 1,165,158 | |||||||||
• Accounts Receivable – Trade, net |
1,473,774 | 1,469,426 | 1,508,893 | |||||||||
• Accounts Receivable – Other, net |
643,027 | 393,136 | 390,243 | |||||||||
• Others |
2,408,017 | 2,298,134 | 2,178,111 | |||||||||
| Non-Current Assets |
19,713,222 | 20,216,179 | 19,343,221 | |||||||||
• Long-Term Investment Securities |
2,475,763 | 2,396,996 | 1,418,465 | |||||||||
• Investments in Subsidiaries and Associates |
5,888,482 | 5,892,726 | 4,899,558 | |||||||||
• Property and Equipment, net |
7,229,934 | 7,680,504 | 8,515,225 | |||||||||
• Goodwill |
1,306,236 | 1,306,236 | 1,306,236 | |||||||||
• Intangible Assets, net |
1,092,400 | 1,230,202 | 1,683,018 | |||||||||
• Others |
1,720,407 | 1,709,515 | 1,520,719 | |||||||||
|
|
|
|
|
|
|
|||||||
| Total Assets |
24,740,400 | 25,148,736 | 24,585,626 | |||||||||
|
|
|
|
|
|
|
|||||||
| Liabilities |
||||||||||||
| Current Liabilities |
4,509,974 | 5,070,242 | 6,240,886 | |||||||||
| Non-Current Liabilities |
7,861,485 | 8,087,444 | 7,383,886 | |||||||||
|
|
|
|
|
|
|
|||||||
| Total Liabilities |
12,371,459 | 13,157,686 | 13,624,772 | |||||||||
|
|
|
|
|
|
|
|||||||
| Equity |
||||||||||||
| Share Capital |
30,493 | 30,493 | 30,493 | |||||||||
| Capital Surplus (Deficit) and Other Capital Adjustments |
(6,247,105 | ) | (4,547,673 | ) | (4,551,820 | ) | ||||||
| Retained Earnings |
17,211,460 | 15,199,915 | 15,273,451 | |||||||||
| Reserves |
1,374,093 | 1,308,315 | 208,730 | |||||||||
|
|
|
|
|
|
|
|||||||
| Total Equity |
12,368,941 | 11,991,050 | 10,960,854 | |||||||||
|
|
|
|
|
|
|
|||||||
| Total Liabilities and Equity |
24,740,400 | 25,148,736 | 24,585,626 | |||||||||
|
|
|
|
|
|
|
|||||||
| (Unit: in millions of Won) |
| |||||||||||
| For the three months ended March 31, 2026 |
For the year ended December 31, 2025 |
`For the year ended December 31, 2024 |
||||||||||
| Operating Revenue |
3,105,789 | 12,051,068 | 12,774,060 | |||||||||
| Operating Profit |
409,528 | 811,842 | 1,523,175 | |||||||||
| Profit Before Income Tax |
433,942 | 736,498 | 1,477,084 | |||||||||
| Profit for the Period |
332,692 | 410,795 | 1,280,484 | |||||||||
| Basic Earnings Per Share (Won) |
1,539 | 1,836 | 5,923 | |||||||||
| Diluted Earnings Per Share (Won) |
1,537 | 1,836 | 5,907 | |||||||||
13
Table of Contents
2. Dividends and Others
| A. | Dividend Policy |
| (1) | Financial Metrics and Calculation Methods Used to Determine Dividend Targets |
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.
Adjusted consolidated profit is based on profit attributable to controlling interests, excluding one-time non-recurring gains and losses.
| (2) | Outlook for Future Dividend Levels and Future Dividend Policy Direction |
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 37th General Meeting of Shareholders held in March 2021 and has been distributing quarterly dividends since the second quarter of 2021.
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 shares (1.85% of the total number of shares issued at the time).
| (3) | Policy on Restriction of Dividends |
Not Applicable.
| B. | Matters related to Provision of Dividend Predictability |
| (1) | Dividend Improvement Procedures in the Articles of Incorporation |
14
Table of Contents
| Classification |
Annual Dividends |
Quarterly or Interim Dividends | ||
| Authority for deciding dividend amounts | General Meeting of Shareholders | Board of Directors | ||
| Whether it is possible to set the dividend record date after the dividend amount is determined | Yes | Yes | ||
| Plans for implementing dividend improvement procedures | — | — | ||
| * | 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 annual dividend record date to be set after determination of the dividend amount. |
| ** | Following the amendments to the Company’s Articles of Incorporation at the 41st General Meeting of Shareholders on March 26, 2025, the Company’s dividend policy was further improved by allowing the quarterly dividend record date to be set after determination of the dividend amount. |
| (2) | Status of Dividend Amount Determination Date and Dividend Record Date |
| Classification |
Fiscal month | Dividend status | Dividend amount determination date |
Dividend record date | Provision of dividend predictability |
Remarks | ||||||||||||||||||
| Quarterly dividend |
March 2026 | Declared | April 27, 2026 | May 31, 2026 | Provided | — | ||||||||||||||||||
| Annual dividend |
December 2025 | Not Declared | — | — | Provided | — | ||||||||||||||||||
| Quarterly dividend |
September 2025 | Not Declared | — | — | Provided | — | ||||||||||||||||||
| Quarterly dividend |
June 2025 | Declared | July 24, 2025 | August 31, 2025 | Provided | — | ||||||||||||||||||
| Quarterly dividend |
March 2025 | Declared | April 24, 2025 | May 31, 2025 | Provided | — | ||||||||||||||||||
| Annual dividend |
December 2024 | Declared | March 26, 2025 | February 28, 2025 | Provided | — | ||||||||||||||||||
| Quarterly dividend |
September 2024 | Declared | October 24, 2024 | September 30, 2024 | Not Provided | — | ||||||||||||||||||
| Quarterly dividend |
June 2024 | Declared | July 25, 2024 | June 30, 2024 | Not Provided | — | ||||||||||||||||||
| Quarterly dividend |
March 2024 | Declared | April 25, 2024 | March 31, 2024 | Not Provided | — | ||||||||||||||||||
| Annual dividend |
December 2023 | Declared | March 26, 2024 | December 31, 2023 | Not provided | — | ||||||||||||||||||
| Quarterly dividend |
September 2023 | Declared | October 25, 2023 | September 30, 2024 | Not provided | — | ||||||||||||||||||
| Quarterly dividend |
June 2023 | Declared | July 26, 2023 | June 30, 2023 | Not Provided | — | ||||||||||||||||||
| Quarterly dividend |
March 2023 | Declared | April 20, 2023 | March 31, 2023 | Not Provided | — | ||||||||||||||||||
| * | After reporting to the Board of Directors, the Company disclosed through a voluntary disclosure of management matters that it will not pay cash dividends in light of changes to the business environment. The disclosure for the third quarter of 2025 was made on October 30, 2025 and the disclosure for the year ended December 31, 2025 was made on February 5, 2026. |
As there have been no material changes to the key dividend indicators or past distributions of dividends, such information has been omitted in this quarterly report in accordance with applicable Korean disclosure rules. For more information, please refer to the Company’s annual business report for the year ended December 31, 2025.
3. Use of Direct Financing
| A. | Use of Proceeds from Public Offerings |
[SK Telecom]
Not Applicable.
[SK Broadband]
| (As of March 31, 2026) |
|
(Unit: in millions of Won) | ||||||||||||||||||||||||||
| Category |
Bond Series | Payment Date | Planned Use of Proceeds | Actual Use of Proceeds | Reasons for Difference | |||||||||||||||||||||||
| Use | Amount | Use | Amount | |||||||||||||||||||||||||
| Corporate bond |
Series 59-1 | February 12, 2026 | Facility fund | 210,000 | — | — | Related investment not yet due | |||||||||||||||||||||
| Corporate bond |
Series 59-2 | February 12, 2026 | Facility fund | 30,000 | — | — | Related investment not yet due | |||||||||||||||||||||
15
Table of Contents
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 three months ended March 31, 2026 | ||||||||||||
| Gross amount | Loss Allowance | Percentage | ||||||||||
| Accounts receivable – trade |
2,245,195 | 277,694 | 12.4 | % | ||||||||
| Loans |
131,320 | 19,956 | 15.2 | % | ||||||||
| Accounts receivable – other |
723,694 | 21,570 | 3.0 | % | ||||||||
| Accrued income |
1,635 | — | — | |||||||||
| Guarantee deposits |
264,450 | — | — | |||||||||
|
|
|
|
|
|
|
|||||||
| Total |
3,366,294 | 319,220 | 9.5 | % | ||||||||
|
|
|
|
|
|
|
|||||||
| (Unit: in millions of Won, except percentages) | ||||||||||||
| For the year ended December 31, 2025 | ||||||||||||
| Gross amount | Loss Allowance | Percentage | ||||||||||
| Accounts receivable – trade |
2,194,385 | 267,482 | 12.2 | % | ||||||||
| Loans |
121,702 | 19,854 | 16.3 | % | ||||||||
| Accounts receivable – other |
531,547 | 20,459 | 3.8 | % | ||||||||
| Accrued income |
1,998 | — | — | |||||||||
| Guarantee deposits |
270,219 | — | — | |||||||||
|
|
|
|
|
|
|
|||||||
| Total |
3,119,851 | 307,795 | 9.9 | % | ||||||||
|
|
|
|
|
|
|
|||||||
| (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 | % | ||||||||
|
|
|
|
|
|
|
|||||||
| (2) | Movements in Loss Allowance of Trade and Other Receivables |
| (Unit: in millions of Won) | ||||||||||||
| For the three months ended March 31, 2026 |
For the year ended December 31, 2025 |
For the year ended December 31, 2024 |
||||||||||
| Beginning balance |
307,795 | 325,615 | 318,401 | |||||||||
| Effect of change in accounting policy |
— | — | — | |||||||||
| Increase of loss allowance |
11,422 | 47,465 | 54,703 | |||||||||
| Reversal of loss allowance |
— | — | — | |||||||||
| Write-offs |
191 | (65,285 | ) | (44,556 | ) | |||||||
| Other |
(188 | ) | — | (2,933 | ) | |||||||
| Ending balance |
319,220 | 307,795 | 325,615 | |||||||||
| (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.
16
Table of Contents
| (4) | Aging of Accounts Receivable |
| (Unit: in millions of Won, except percentages) | ||||||||||||||||||||
| As of March 31, 2026 | ||||||||||||||||||||
| Six months or less |
From six months to one year |
From one year to three years |
More than three years |
Total | ||||||||||||||||
| Accounts receivable – general |
1,971,558 | 61,201 | 161,670 | 50,767 | 2,245,195 | |||||||||||||||
| Percentage |
87.8 | % | 2.7 | % | 7.2 | % | 2.3 | % | 100.0 | % | ||||||||||
| C. | Inventories |
| (1) | Detailed Categories of Inventories |
| (Unit: in millions of Won, except percentages) | ||||||||||||
| Account Category |
For the three months ended March 31, 2026 |
For the year ended December 31, 2025 |
For the year ended December 31, 2024 |
|||||||||
| Merchandise |
185,214 | 154,054 | 183,202 | |||||||||
| Goods in transit |
— | — | — | |||||||||
| Other inventories |
16,857 | 13,586 | 26,581 | |||||||||
|
|
|
|
|
|
|
|||||||
| Total |
202,071 | 167,640 | 209,783 | |||||||||
|
|
|
|
|
|
|
|||||||
| Percentage of inventories to total assets [Inventories / Total assets] |
0.67 | % | 0.56 | % | 0.69 | % | ||||||
| Inventory turnover [Cost of sales / { ( Beginning balance of inventories + Ending balance of inventories ) / 2}] |
7.03 | 6.73 | 6.73 | |||||||||
| (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 Note 29 of the notes to the Company’s interim 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 SK Telecom as of March 31, 2026. The compliance status is as of March 31, 2026, the date of the latest financial statements including the review or 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 Fiscal |
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 April 13, 2026 |
17
Table of Contents
| Name |
Issue Date | Maturity Date | Principal Amount (millions of Won) |
Date of Fiscal Agency 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 66-3 |
Feb. 26, 2015 | Feb. 26, 2030 | 50,000 | Feb. 11, 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 68-3 |
Nov. 30, 2015 | Nov. 30, 2035 | 70,000 | Nov. 18, 2015 | 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 April 13, 2026 |
| Name |
Issue Date | Maturity Date | Principal Amount (millions of Won) |
Date of Fiscal Agency 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 April 13, 2026 |
18
Table of Contents
| Name |
Issue Date | Maturity Date | Principal Amount (millions of Won) |
Date of Fiscal Agency 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 April 13, 2026 |
| Name |
Issue Date | Maturity Date | Principal Amount (millions of Won) |
Date of Fiscal Agency 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 April 13, 2026 |
| Name |
Issue Date | Maturity Date | Principal Amount (millions of Won) |
Date of Fiscal Agency 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 April 13, 2026 |
19
Table of Contents
| Name |
Issue Date | Maturity Date | Principal Amount (millions of Won) |
Date of Fiscal Agency Agreement |
Fiscal Agent | |||||
| 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 April 13, 2026 |
| Name |
Issue Date | Maturity Date | Principal Amount (millions of Won) |
Date of Fiscal Agency Agreement |
Fiscal Agent | |||||
| 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 April 13, 2026 |
| Name |
Issue Date | Maturity Date | Principal Amount (millions of Won) |
Date of Fiscal Agency Agreement |
Fiscal Agent | |||||
| 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 April 13, 2026 |
20
Table of Contents
| Name |
Issue Date | Maturity Date | Principal Amount (millions of Won) |
Date of Fiscal Agency Agreement |
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 82-2 |
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 April 13, 2026 |
| Name |
Issue Date | Maturity Date | Principal Amount (millions of Won) |
Date of Fiscal Agency Agreement |
Fiscal Agent | |||||
| Unsecured Bond – Series 83-2 |
Aug. 10, 2022 | Aug. 10, 2027 | 95,000 | July 29, 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 April 13, 2026 |
| Name |
Issue Date | Maturity Date | Principal Amount (millions of Won) |
Date of Fiscal Agency Agreement |
Fiscal Agent | |||||
| Unsecured Bond – Series 85-2 |
Feb. 17, 2023 | Feb. 17, 2028 | 190,000 | Feb. 7, 2023 | Korea Securities Finance Corp. |
21
Table of Contents
| 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 April 13, 2026 |
| Name |
Issue Date | Maturity Date | Principal Amount (millions of Won) |
Date of Fiscal Agency Agreement |
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 April 13, 2026 |
| Name |
Issue Date | Maturity Date | Principal Amount (millions of Won) |
Date of Fiscal Agency Agreement |
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 April 13, 2026 |
| Name |
Issue Date | Maturity Date | Principal Amount (millions of Won) |
Date of Fiscal Agency Agreement |
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. |
22
Table of Contents
| 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 April 13, 2026 |
| Name |
Issue Date | Maturity Date | Principal Amount (millions of Won) |
Date of Fiscal Agency Agreement |
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 April 13, 2026 |
| Name |
Issue Date | Maturity Date | Principal Amount (millions of Won) |
Date of Fiscal Agency Agreement |
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 | Submitted on April 13, 2026 |
23
Table of Contents
| Name |
Issue Date | Maturity Date | Principal Amount (millions of Won) |
Date of Fiscal Agency Agreement |
Fiscal Agent | |||||
| Unsecured Bond – Series 90-1 |
Feb. 21, 2025 | Feb. 21, 2028 | 190,000 | Feb. 11, 2025 | Korea Securities Finance Corp. | |||||
| Unsecured Bond – Series 90-2 |
Feb. 21, 2025 | Feb. 21, 2030 | 70,000 | Feb. 11, 2025 | Korea Securities Finance Corp. | |||||
| Unsecured Bond – Series 90-3 |
Feb. 21, 2025 | Feb. 21, 2035 | 140,000 | Feb. 11, 2025 | 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 April 13, 2026 |
| Name |
Issue Date | Maturity Date | Principal Amount (millions of Won) |
Date of Fiscal Agency Agreement |
Fiscal Agent | |||||
| Unsecured Bond – Series 91-1 |
Sept. 11, 2025 | Sept. 11, 2028 | 80,000 | Sept. 1, 2025 | Korea Securities Finance Corp. | |||||
| Unsecured Bond – Series 91-2 |
Sept. 11, 2025 | Sept. 10, 2030 | 190,000 | Sept. 1, 2025 | Korea Securities Finance Corp. | |||||
| Unsecured Bond – Series 91-3 |
Sept. 11, 2025 | Sept. 11, 2035 | 40,000 | Sept. 1, 2025 | 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 April 13, 2026 |
[SK Broadband]
The following are key terms and conditions of bonds issued by SK Broadband as of March 31, 2026. The compliance status is as of March 31, 2026, the date of the latest financial statements including the review or 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.
24
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| Name |
Issue Date | Maturity Date | Principal Amount (millions of Won) |
Date of Fiscal Agency Agreement |
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 52-2 |
Jan. 25, 2022 | Jan. 25, 2032 | 50,000 | Jan. 13, 2022 | 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. | |||||
| Unsecured Bond – Series 56—1 |
Dec. 4, 2024 | Dec. 3, 2027 | 130,000 | Nov. 22, 2024 | Korea Securities Finance Corp. | |||||
| Unsecured Bond – Series 56-2 |
Dec. 4, 2024 | Dec. 4, 2029 | 115,000 | Nov. 22, 2024 | Korea Securities Finance Corp. | |||||
| Unsecured Bond – Series 56—3 |
Dec. 4, 2024 | Dec. 4, 2031 | 50,000 | Nov. 22, 2024 | Korea Securities Finance Corp. | |||||
| Unsecured Bond – Series 57—1 |
Apr. 29, 2025 | Apr. 28, 2028 | 50,000 | Apr. 17, 2025 | Korea Securities Finance Corp. | |||||
| Unsecured Bond – Series 57-2 |
Apr. 29, 2025 | Apr. 29, 2030 | 120,000 | Apr. 17, 2025 | Korea Securities Finance Corp. | |||||
| Unsecured Bond – Series 57-3 |
Apr. 29, 2025 | Apr. 29, 2035 | 30,000 | Apr. 17, 2025 | Korea Securities Finance Corp. | |||||
| Unsecured Bond – Series 58-1 |
Jun. 19, 2025 | Jun. 19, 2030 | 480,000 | Jun. 9, 2025 | Korea Securities Finance Corp. | |||||
| Unsecured Bond – Series 58-2 |
Jun. 19, 2025 | Jun. 19, 2035 | 50,000 | Jun. 9, 2025 | Korea Securities Finance Corp. | |||||
| Unsecured Bond – Series 59-1 |
Feb. 12, 2026 | Feb. 12, 2031 | 210,000 | Feb. 2, 2026 | Korea Securities Finance Corp. | |||||
| Unsecured Bond – Series 59-2 |
Feb. 12, 2026 | Feb. 12, 2036 | 30,000 | Feb 2, 2026 | 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 April 20, 2026 |
25
Table of Contents
| IV. | MANAGEMENT’S DISCUSSION AND ANALYSIS |
Omitted in quarterly reports in accordance with applicable Korean disclosure rules. For more information, please refer to the Company’s annual business report for the year ended December 31, 2025.
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| 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 | |||||
| Three months ended March 31, 2026 | Audit report (Separate) |
KPMG Samjong | Unqualified | — | — | |||||
| Audit report (Consolidated) |
KPMG Samjong | Unqualified | — | — | ||||||
| Year ended December 31, 2025 | Audit report (Separate) |
KPMG Samjong | Unqualified | — | Existence and accuracy of the Company’s cellular services revenue | |||||
| Audit report (Consolidated) |
KPMG Samjong | Unqualified | — | Existence and accuracy of the Company’s cellular services revenue; impairment assessment of goodwill for the fixed-line telecommunications services cash generating unit | ||||||
| Year ended 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 assessment of goodwill for the fixed-line telecommunications services cash generating unit |
| B. | Audit Services Contracts with Independent Auditors |
| (Unit: in millions of Won except number of hours) | ||||||||||||||||||||
| Period |
Auditors |
Contents |
Audit Contract | Actual Performance | ||||||||||||||||
| Fee | Total number of hours |
Fee | Total number of hours |
|||||||||||||||||
| Three months ended March 31, 2026 |
KPMG Samjong | Quarterly and semi-annual review | 2,597 | 24,500 | 208 | 1,960 | ||||||||||||||
| Separate financial statements audit | ||||||||||||||||||||
| Consolidated financial statements audit | ||||||||||||||||||||
| English financial statements review and other audit task | ||||||||||||||||||||
| Internal accounting system audit | ||||||||||||||||||||
| Year ended December 31, 2025 |
KPMG Samjong | Quarterly and semi-annual review | 2,597 | 24,500 | 2,597 | 24,500 | ||||||||||||||
| Separate financial statements audit | ||||||||||||||||||||
| Consolidated financial statements audit | ||||||||||||||||||||
| English financial statements review and other audit task | ||||||||||||||||||||
| Internal accounting system audit | ||||||||||||||||||||
| Year ended December 31, 2024 |
Ernst & Young Han 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 | ||||||||||||||||||||
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| C. | Non-Audit Services Contracts with Independent Auditors |
| (Unit: in millions of Won) | ||||||||||
| Period |
Contract date |
Service provided |
Service duration |
Fee | ||||||
| Three months ended March 31, 2026 |
April 24, 2026 | Consulting on enhancement of net zero strategy | April 24, 2026 – July 31, 2026 | 80 | ||||||
| April 7, 2026 | Consulting on international taxation, including transfer pricing and tariffs | April 7, 2026 – March 5, 2027 | 65 | |||||||
| March 31, 2026 | Consulting on enhancement of ESG management | April 2, 2026 – November 28, 2026 | 160 | |||||||
| Year ended December 31, 2025 |
December 11, 2025 | Financial confirmation letter for frequency reallocation application | December 16, 2025 – December 27, 2025 | 3 | ||||||
| July 28, 2025 | Consulting on overseas value-added tax | July 28, 2025 – October 31, 2025 | 21 | |||||||
| March 28, 2025 | Research on international cases of carbon neutrality information disclosures | March 28, 2025 – May 31, 2025 | 100 | |||||||
| March 26, 2025 | Consulting on international taxation | March 26, 2025 – March 31, 2026 | 50 | |||||||
| March 24, 2025 | Interpretation of customs value | March 24, 2025 – June 30, 2026 | 15 | |||||||
| November 25, 2022 | Appeal of overseas value-added tax | December 1, 2022 – April 30, 2025 | 176 | |||||||
| Year ended December 31, 2024 |
— | — | — | — | ||||||
| D. | Non-Audit Service Contracts with Network Accounting Firms of the Independent Auditors |
| (Unit: in millions of Won) | ||||||||||
| Period |
Name of network accounting firm |
Contract date | Service provided |
Service duration |
Fee | |||||
| Three months ended March 31, 2026 | — | — | — | — | — | |||||
| Year ended December 31, 2025 | KPMG LLP | February 26, 2025 | Tax adjustment and advisory services | February 26, 2025 – September 11, 2025 | 62 | |||||
| Year ended December 31, 2024 | — | — | — | — | — | |||||
| E. | Discussions Between Audit Committee and Independent Auditors |
| Date |
Attendance |
Method |
Key Matters Discussed | |||
| February 24, 2026 | Company’s Audit Committee: 4 Auditor: 2 |
In-person | Report on 2025 results of audit of financial statements; report on results of 2025 internal accounting management system audit | |||
| April 22, 2026 | Company’s Audit Committee: 4 Auditor: 2 |
In-person | Report on 2025 results of Public Company Accounting Oversight Board audit | |||
| April 22, 2026 | Company’s Audit Committee: 4 Auditor: 2 |
In-person | Report on audit plans for fiscal year 2026 | |||
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Table of Contents
| VI. | CORPORATE ORGANIZATION INCLUDING BOARD OF DIRECTORS |
1. Board of Directors
Omitted in quarterly reports in accordance with applicable Korean disclosure rules. For more information, please refer to the Company’s annual business report for the year ended December 31, 2025.
2. Audit System
Omitted in quarterly reports in accordance with applicable Korean disclosure rules. For more information, please refer to the Company’s annual business report for the year ended December 31, 2025.
3. Shareholders’ Exercise of Voting Rights
| A. | Voting System |
| (As of March 31, 2026) | ||||||
| Classification of Voting System |
Cumulative voting system |
Written voting system |
Electronic voting system | |||
| Adoption status | Selected | Not adopted | Adopted | |||
| Implementation status | — | — | Conducted during the 42nd General Meeting of Shareholders | |||
The Company implemented a proxy solicitation procedure for the 42nd General Meeting of Shareholders, pursuant to which shareholders were permitted to provide written proxy to exercise their voting rights.
29
Table of Contents
| VII. | SHAREHOLDERS |
1. Shareholdings of the Largest Shareholder and Related Persons
| A. | Shareholdings of the Largest Shareholder and Related Persons |
| (As of March 31, 2026) | (Unit: in shares and percentages) | |||||||||||||||||||
| Name |
Relationship |
Type of share |
Number of shares owned and ownership ratio | |||||||||||||||||
| Beginning of Period | End of Period | |||||||||||||||||||
| Number of shares |
Ownership ratio |
Number of shares |
Ownership ratio |
|||||||||||||||||
| SK Inc. |
Largest shareholder | Common share | 65,668,397 | 30.57 | 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 affiliated company | Common share | 20,309 | 0.01 | 23,774 | 0.01 | ||||||||||||||
| Jaihun Jung |
Officer of the Company | Common share | 0 | 0.00 | 1,518 | 0.00 | ||||||||||||||
| Myung Jin Han |
Officer of the Company | Common share | 0 | 0.00 | 11,379 | 0.01 | ||||||||||||||
| Poong Young Yoon |
Officer of the Company | Common share | 2,733 | 0.00 | 4,639 | 0.00 | ||||||||||||||
| Chang Bo Kim |
Officer of the Company | Common share | 868 | 0.00 | 1,493 | 0.00 | ||||||||||||||
| Mi Kyung Noh |
Officer of the Company | Common share | 1,846 | 0.00 | 1,846 | 0.00 | ||||||||||||||
| Hae Yun Oh |
Officer of the Company | Common share | 3,184 | 0.00 | 3,184 | 0.00 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total |
Common share | 65,709,344 | 30.59 | 65,717,295 | 30.60 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||
| * | At the 42nd General Meeting of Shareholders held on March 26, 2026, Jaihun Jung was newly appointed as Chief Executive Officer and Myung Jin Han was newly appointed as an executive director. As a result of their inclusion as the largest shareholder and related persons, their shareholdings have been reflected in the changes in shareholdings of the largest shareholder and related persons. |
| ** | The number of shares owned and ownership ratio as of the beginning of the period account for the 10,942 shares owned by Yong-Hak Kim (former independent director) and Junmo Kim (former independent director), whose respective terms expired in March 2026. |
| B. | Overview of the Largest Shareholder |
As of March 31, 2026, 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/.
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Table of Contents
| C. | Changes in Shareholdings of the Largest Shareholder and Related Persons |
Changes in shareholdings of the largest shareholder are as follows:
| (As of March 31, 2026) | (Unit: in shares and percentages) | |||||||
| Largest Shareholder |
Date of the change |
Shares Held |
Holding Ratio |
Remarks | ||||
| SK Inc. | 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 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 related party relationship of Jung Ho Park, officer of affiliated company (21,530 shares). | |||||
| March 26, 2025 | 65,704,484 | 30.59 | Retirement of Jong Ryeol Kang, executive director of the Company (8,823 shares) and Seok-Dong Kim, independent director of the Company (3,763 shares). | |||||
| April 28, 2025 | 65,709,344 | 30.59 | Four independent directors of the Company, Junmo Kim, Haeyun Oh, Mi Kyung Noh and Chang Bo Kim, each acquired 868 shares. Yong-Hak Kim, another independent director of the Company, acquired 1,388 shares. | |||||
| March 6, 2026 | 65,709,969 | 30.59 | Independent director Chang Bo Kim acquired 625 shares. | |||||
| March 26, 2026 | 65,699,027 | 30.59 | Retirement of two independent directors of the Company, Yong-Hak Kim (6,311 shares) and Junmo Kim (4,631 shares). | |||||
| March 26, 2026(1) | 65,720,028(1) | 30.60(1) | Young Sang Ryu, officer of affiliated company, Jaihun Jung, Chief Executive Officer of the Company, Myung Jin Han, executive director of the Company, and Poong Young Yoon, non-executive director of the Company, acquired 3,465, 1,518, 11,379 and 1,906 shares, respectively. (1) | |||||
| (1) | At the 42nd General Meeting of Shareholders held on March 26, 2026, Jaihun Jung was newly appointed as Chief Executive Officer and Myung Jin Han was newly appointed as an executive director. As a result of their inclusion as the largest shareholder and related persons, their shareholdings have been reflected in the changes in shareholdings of the largest shareholder and related persons. |
| * | The figures for shares held and holding ratio are based on the shareholding of the largest shareholder and its related persons. |
| ** | The figures for holding ratio are calculated based on the total number of issued common shares. |
| *** | The changes in holding ratio also reflects the cancellation of treasury shares (1.8% of total shares issued) in February 2024. |
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Table of Contents
| VIII. | EMPLOYEES AND DIRECTORS |
1. Officers and Employees
| A. | Registered Directors |
| (As of March 31, 2026) | ||||||||||||
| Name |
Gender |
Date of Birth |
Position |
Professional Background |
Duration of |
End of Current Term | ||||||
| Jaihun Jung | Male | Jun. 1968 | President and Chief Executive Officer; Representative Director | Bachelor of Laws in Public Law, Seoul National University; Chief Growth Officer, SK Telecom; Chairperson, Governance Committee, SUPEX Council (Current) | 1 month | — | ||||||
| Myung Jin Han | Male | Oct. 1973 | Head of MNO CIC | Bachelor of Business Administration, Korea University; President and Chief Executive Officer, SK Square | 1 month | — | ||||||
| Poong Young Yoon | Male | Nov. 1974 | Non-executive Director | MBA, INSEAD; President, SK AX; President in Charge, SUPEX Council (Current) | 1 month | — | ||||||
| Chang Bo Kim | Male | Jul. 1959 | Independent Director | Bachelor of Laws, Seoul National University; Chief Judge, Seoul High Court; Presiding Judge, Seoul Central District Court; Attorney, DR & AJU LLC (Current) |
1 year and 1 month | — | ||||||
| Haeyun Oh | Female | Nov. 1974 | Independent Director | Ph.D. in Electrical Engineering and Computer Science, Massachusetts Institute of Technology; Director, KAIST Center for MARS Artificial Intelligence Research; Professor of Computing, KAIST (Current); Head of Global Cooperation Subcommittee, National AI Strategy Committee (Current) | 3 years and 1 month | — | ||||||
| Mi Kyung Noh | Female | Aug. 1965 | Independent Director | MBA, Sogang University; Regional Head of Credit Risk Review and Asia Pacific Risk, HSBC Hong Kong | 2 years and 1 month | — | ||||||
| Seong Yeob Lee | Male | Aug. 1967 | Independent Director | Ph.D. in Law, Seoul National University; Foreign Attorney (U.S.), Kim & Chang; Professor, Graduate School of Management of Technology, Korea University (Current); President, Korea Information & Communication Technology Law Association (Current) | 1 month | — | ||||||
| Tay Seop Lim | Male | Sep. 1963 | Independent Director | Ph.D. in Business Administration, University of North Carolina; Representative Director, Macquarie Securities Korea Limited; Chief Executive Officer, Goldman Sachs Asset Management Korea; Professor of Graduate School of Business, Sungkyunkwan University (Current) | 1 month | — | ||||||
| * | At the 42nd General Meeting of Shareholders held on March 26, 2026, Jaihun Jung was newly elected as Chief Executive Officer, Myung Jin Han was newly elected as an executive director, and Poong Young Yoon was newly elected as a non-executive director. Haeyun Oh was re-elected as an independent director, and Seong Yeob Lee and Tay Seop Lim were newly elected as independent directors and members of the Audit Committee. |
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Table of Contents
2. Compensation of Directors and Officers
Omitted in quarterly reports in accordance with applicable Korean disclosure rules. For more information, please refer to the Company’s annual business report for the year ended December 31, 2025.
| IX. | RELATED PARTY TRANSACTIONS |
1. Line of Credit Extended to the Largest Shareholder and Related Parties
None.
| 2. | Transfer of Assets to/from the Largest Shareholder and Related Parties and Other Transactions |
None.
See Note 10 of the notes to the Company’s interim consolidated financial statements attached hereto for information relating to acquisitions and dispositions of investments in related parties.
3. Transactions with the Largest Shareholder and Related Parties
None.
4. Related Party Transactions
See Note 30 of the notes to the Company’s interim consolidated financial statements attached hereto for information regarding related party transactions.
5. Share-based Compensation Transactions with the Largest Shareholder and Related Parties
| (As of March 31, 2026) | ||||||||||||||||||
| Program Name |
Grantee | Relationship | Grant Date |
Issuance Date (Cancellation Date) |
Shares Granted | Shares Issued | Unissued | |||||||||||
| New | Cumulative | Current Period |
Cumulative | Unissued at End of Period | ||||||||||||||
| Performance Stock Unit (“PSU”) | Jaihun Jung | Chief Executive Officer |
March 26, 2024 |
Within one month of the Board of Directors’ 2027 resolution on the disposal of treasury shares |
— | 6,449 | — | — | 6,449 | |||||||||
| Myung Jin Han |
Executive Director |
March 28, 2023 |
Within one month of the Board of Directors’ 2026 resolution on the disposal of treasury shares |
— | 2,400 | — | — | 2,400** | ||||||||||
| Young Sang Ryu |
Officer of Affiliated Company |
March 28, 2023 |
Within one month of the Board of Directors’ 2026 resolution on the disposal of treasury shares |
— | 25,380 | — | — | 25,380** | ||||||||||
| March 26, 2024 |
Within one month of the Board of Directors’ 2027 resolution on the disposal of treasury shares |
— | 26,555 | — | — | 26,555 | ||||||||||||
| * | 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 were set when entering into the relevant stock compensation agreement, and the final number of shares to be received by each grantee, which would be settled out of the Company’s treasury shares, were determined based on the achievement levels of such targets subject to approval by the Board of Directors. |
| ** | The PSUs granted in 2023 will be paid following the 42nd General Meeting of Shareholders three years later (in 2026) in accordance with the relevant agreement. Pursuant to the resolution of the Board of Directors on the disposal of treasury shares adopted on April 27, 2026, such PSUs have been definitively converted, on an after-tax basis, into 539 common shares for Myung Jin Han, executive director, and 5,905 common shares for Young Sang Ryu, officer of affiliated company, with payment scheduled for May 2026. |
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Table of Contents
6. 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 March 31, 2026) | (Unit: in millions of Won) | |||||||||||||||||||||||||||
| Name (Corporate name) |
Relationship | Account category | Change details | Accrued interest |
Remarks | |||||||||||||||||||||||
| Beginning | Increase | Decrease | Ending | |||||||||||||||||||||||||
| Baekmajang and others |
Agency | Long-term and short- term loans |
61,096 | 44,867 | 34,691 | 71,272 | — | — | ||||||||||||||||||||
| B. | Other transactions |
See Note 31 of the notes to the Company’s interim consolidated financial statements attached hereto for more information regarding other related party transactions relating to pledges and guarantees, sale and purchase of securities and real properties, transfers of business and assets, and long-term supply agreements.
See Note 30 of the notes to the Company’s interim consolidated financial statements attached hereto for more information regarding other related party transactions relating to the compensation for key management.
| 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 March 31, 2026, 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.
| B. | Other Contingent Liabilities and Guarantees for Payment |
[SK Telecom]
None.
See Note 31 of the notes to the Company’s interim consolidated financial statements attached hereto for more information regarding other contingent liabilities.
[SK Broadband]
See Note 31 of the notes to the Company’s interim consolidated financial statements attached hereto for more information regarding other contingent liabilities.
[PS&Marketing]
As of March 31, 2026, PS&Marketing has been provided with the following material payment guarantees by other parties.
| (Unit: in millions of Won) | ||||||
| Guarantor |
Guaranteed Amount | Guarantee Details | ||||
| Seoul Guarantee Insurance Company |
1,091 | Performance guarantee | ||||
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Table of Contents
[SK Telink]
As of March 31, 2026, SK Telink provided the following material payment guarantees to other parties.
| (Unit: in millions of Won) | ||||||||
| Guarantor |
Counterparty |
Guaranteed Amount | Guarantee Details | |||||
| SK Telink |
Korea Coast Guard and others | 1,741 | Contract guarantee | |||||
As of March 31, 2026, SK Telink has been provided with the following material payment guarantees by other parties.
| (Unit: in millions of Won) | ||||||
| Guarantor |
Guaranteed Amount | Guarantee Details | ||||
| Seoul Guarantee Insurance Company |
1,010 | Contract guarantee | ||||
[Home&Service]
As of March 31, 2026, Home&Service has been provided with the following material payment guarantees by other parties.
| (Unit: in millions of Won) | ||||||
| Guarantor |
Guaranteed Amount | Guarantee Details | ||||
| Seoul Guarantee Insurance Company |
38 | Payment guarantees | ||||
As of March 31, 2026, Home&Service has entered into the following credit facilities with financial institutions.
| (Unit: in millions of Won) | ||||||
| Financial Institution |
Credit Limit | Details | ||||
| Shinhan Bank |
6,000 | Revolving credit | ||||
[SK O&S]
As of March 31, 2026, SK O&S has been provided with the following material payment guarantees by other parties.
| (Unit: in millions of Won) | ||||||
| Guarantor |
Guaranteed Amount | Guarantee Details | ||||
| Seoul Guarantee Insurance Company |
50,000 | Contract performance guarantee | ||||
[SK Stoa]
As of March 31, 2026, SK Stoa has been provided with the following material payment guarantees by other parties.
| (Unit: in millions of Won) | ||||||
| Guarantor |
Guaranteed Amount | Guarantee Details | ||||
| Kookmin Bank |
1,200 | Performance guarantee | ||||
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Table of Contents
[Service Ace]
As of March 31, 2026, Service Ace has been provided with the following material payment guarantees by other parties.
| (Unit: in millions of Won) | ||||||
| Guarantor |
Guaranteed Amount | Guarantee Details | ||||
| Seoul Guarantee Insurance Company |
78 | Contract performance guarantee | ||||
3. Status of Sanctions, etc.
Omitted in quarterly reports in accordance with applicable Korean disclosure rules. For more information, please refer to the Company’s annual business report for the year ended December 31, 2025.
4. Material Events Subsequent to the Reporting Period
Omitted in quarterly reports in accordance with applicable Korean disclosure rules. For more information, please refer to the Company’s annual business report for the year ended December 31, 2025.
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Table of Contents
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/ Taehee Kim | |
| (Signature) | ||
| Name: | Taehee Kim | |
| Title: | Vice President | |
Date: June 15, 2026
Table of Contents
SK TELECOM CO., LTD. AND ITS SUBSIDIARIES
Condensed Consolidated Interim Financial Statements
For the three-month periods ended March 31, 2026 and 2025
(With Independent Auditors’ Review Report)
Table of Contents
Table of Contents
Independent Auditors’ Review Report
Based on a report originally issued in Korean
To the Board of Directors and Shareholders
SK Telecom Co., Ltd.
Reviewed financial statements
We have reviewed the accompanying condensed consolidated interim financial statements of SK Telecom Co., Ltd. and its subsidiaries (the “Group”), which comprise the condensed consolidated interim statement of financial position as of March 31, 2026, the condensed consolidated interim statements of income, comprehensive income, changes in equity and cash flows for the three-month periods ended March 31, 2026 and 2025, and notes, including a summary of material accounting policies and other explanatory information.
Management’s responsibility
Management is responsible for the preparation and fair presentation of these condensed consolidated interim financial statements in accordance with Korean International Financial Reporting Standards (“K-IFRS”) No.1034, Interim Financial Reporting, and for such internal controls as management determines is necessary to enable the preparation of condensed consolidated interim financial statements that are free from material misstatement, whether due to fraud or error.
Auditors’ review responsibility
Our responsibility is to issue a report on these condensed consolidated interim financial statements based on our reviews.
We conducted our reviews in accordance with the Review Standards for Quarterly and Semiannual Financial Statements established by the Securities and Futures Commission of the Republic of Korea. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Korean Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our reviews, nothing has come to our attention that causes us to believe that the accompanying condensed consolidated interim financial statements referred to above do not present fairly, in all material respects, in accordance with K-IFRS No.1034, Interim Financial Reporting.
Table of Contents
Other matters
The consolidated statement of financial position of the Group as of December 31, 2025, and the related consolidated statements of income, comprehensive income, changes in equity and cash flows for the year then ended, which are not accompanying this report, were audited by us in accordance with Korean Standards on Auditing and our report thereon, dated March 10, 2026, expressed an unmodified opinion. The accompanying consolidated statement of financial position of the Group as of December 31, 2025, presented for comparative purposes, is not different from that audited by us from which it was derived in all material respects.
The procedures and practices utilized in the Republic of Korea to review such condensed consolidated interim financial statements may differ from those generally accepted and applied in other countries.
KPMG Samjong Accounting Corp.
Seoul, Korea
May 12, 2026
| This report is effective as of May 12, 2026, the review report date. Certain subsequent events or circumstances, which may occur between the review report date and the time of reading this report, could have a material impact on the accompanying condensed consolidated interim financial statements and notes thereto. Accordingly, the readers of the review report should understand that the above review report has not been updated to reflect the impact of such subsequent events or circumstances, if any. |
Table of Contents
SK TELECOM CO., LTD. AND ITS SUBSIDIARIES
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
AS OF MARCH 31, 2026 AND DECEMBER 31, 2025 AND
FOR THE THREE-MONTH PERIODS ENDED MARCH 31, 2026 AND 2025
The accompanying condensed consolidated interim financial statements, including all footnote disclosures, have been prepared by, and are the responsibility of, the Group.
Jung, Jaihun
Chief Executive Officer
SK TELECOM CO., LTD.
Table of Contents
SK TELECOM CO., LTD. and its Subsidiaries
Condensed Consolidated Interim Statements of Financial Position
As of March 31, 2026 and December 31, 2025
| (In millions of won) | Note | March 31, 2026 | December 31, 2025 |
|||||||||
| Assets |
||||||||||||
| Current Assets: |
||||||||||||
| Cash and cash equivalents |
28,29 | 1,490,024 | ||||||||||
| Short-term investment securities |
9,28,29 | 38,858 | 35,217 | |||||||||
| Short-term financial instruments |
28,29 | 259,230 | 151,426 | |||||||||
| Accounts receivable – trade, net |
5,28,29,30 | 1,958,799 | 1,918,502 | |||||||||
| Short-term loans, net |
5,28,29 | 79,492 | 69,664 | |||||||||
| Accounts receivable – other, net |
5,28,29,30,31 | 530,503 | 346,326 | |||||||||
| Contract assets |
7,29 | 135,219 | 124,831 | |||||||||
| Prepaid expenses |
6 | 2,239,284 | 2,135,763 | |||||||||
| Prepaid income taxes |
26 | 454 | 6,217 | |||||||||
| Derivative financial assets |
28,29 | 7,115 | 6,945 | |||||||||
| Inventories, net |
8 | 202,071 | 167,640 | |||||||||
| Assets held for sale |
34 | 157,790 | 143,489 | |||||||||
| Advanced payments and others |
5,28,29 | 129,450 | 131,086 | |||||||||
|
|
|
|
|
|||||||||
| 7,212,945 | 6,727,130 | |||||||||||
|
|
|
|
|
|||||||||
| Non-Current Assets: |
||||||||||||
| Long-term financial instruments |
28,29 | 386 | 370 | |||||||||
| Long-term investment securities |
9,28,29 | 3,287,690 | 3,188,572 | |||||||||
| Investments in associates and joint ventures |
10 | 2,271,228 | 2,238,470 | |||||||||
| Investment property, net |
12 | 26,572 | 39,841 | |||||||||
| Property and equipment, net |
11,13,30,31 | 11,348,717 | 11,902,173 | |||||||||
| Goodwill |
2,072,493 | 2,072,493 | ||||||||||
| Intangible assets, net |
14 | 1,550,235 | 1,710,620 | |||||||||
| Long-term contract assets |
7,29 | 61,916 | 63,778 | |||||||||
| Long-term loans, net |
5,28,29 | 31,872 | 32,184 | |||||||||
| Long-term accounts receivable – other, net |
5,28,29,30,31 | 171,621 | 164,762 | |||||||||
| Long-term prepaid expenses |
6 | 1,324,162 | 1,280,751 | |||||||||
| Guarantee deposits, net |
5,28,29,30 | 165,440 | 167,823 | |||||||||
| Long-term derivative financial assets |
28,29 | 386,435 | 303,201 | |||||||||
| Defined benefit assets |
18 | 99,554 | 205,477 | |||||||||
| Other non-current assets |
5,28,29 | 10,692 | 10,138 | |||||||||
|
|
|
|
|
|||||||||
| 22,809,013 | 23,380,653 | |||||||||||
|
|
|
|
|
|||||||||
| Total Assets |
30,107,783 | |||||||||||
|
|
|
|
|
|||||||||
(Continued)
1
Table of Contents
SK TELECOM CO., LTD. and its Subsidiaries
Condensed Consolidated Interim Statements of Financial Position, Continued
As of March 31, 2026 and December 31, 2025
| (In millions of won) | Note | March 31, 2026 | December 31, 2025 |
|||||||||
| Liabilities and Shareholders’ Equity |
||||||||||||
| Current Liabilities: |
||||||||||||
| Accounts payable – trade |
28,29,30 | 110,867 | ||||||||||
| Accounts payable – other |
28,29,30 | 1,317,321 | 1,576,870 | |||||||||
| Withholdings |
28,29,30 | 1,146,076 | 1,011,918 | |||||||||
| Contract liabilities |
7 | 193,739 | 207,682 | |||||||||
| Accrued expenses |
28,29 | 1,213,883 | 1,345,998 | |||||||||
| Income tax payable |
26 | 92,236 | 28,482 | |||||||||
| Derivative financial liabilities |
28 | 6,291 | 5,782 | |||||||||
| Short-term borrowings |
15,28,29 | 130,000 | 130,000 | |||||||||
| Provisions |
17,33 | 148,279 | 145,953 | |||||||||
| Current portion of long-term debt, net |
15,28,29 | 1,089,769 | 1,122,584 | |||||||||
| Current portion of long-term payables – other |
16,28,29 | 90,218 | 368,572 | |||||||||
| Lease liabilities |
28,29,30 | 394,936 | 407,959 | |||||||||
| Liabilities held for sale |
34 | 60,297 | 67,108 | |||||||||
|
|
|
|
|
|||||||||
| 6,088,614 | 6,529,775 | |||||||||||
|
|
|
|
|
|||||||||
| Non-Current Liabilities: |
||||||||||||
| Debentures, excluding current portion, net |
15,28,29 | 7,263,684 | 7,294,445 | |||||||||
| Long-term borrowings, excluding current portion, net |
15,28,29 | 300,000 | 300,000 | |||||||||
| Long-term payables – other |
16,28,29 | 89,771 | 179,389 | |||||||||
| Long-term lease liabilities |
28,29,30 | 1,037,335 | 1,117,839 | |||||||||
| Long-term contract liabilities |
7 | 278,495 | 194,261 | |||||||||
| Long-term derivative financial liabilities |
28,29 | — | 621 | |||||||||
| Long-term provisions |
17 | 76,153 | 80,094 | |||||||||
| Deferred tax liabilities |
26 | 1,445,927 | 1,363,191 | |||||||||
| Other non-current liabilities |
28,29,30 | 94,362 | 92,876 | |||||||||
|
|
|
|
|
|||||||||
| 10,585,727 | 10,622,716 | |||||||||||
|
|
|
|
|
|||||||||
| Total Liabilities |
16,674,341 | 17,152,491 | ||||||||||
|
|
|
|
|
|||||||||
| Shareholders’ Equity: |
||||||||||||
| Share capital |
1,19 | 30,493 | 30,493 | |||||||||
| Capital surplus and others |
19,20 | (13,850,352 | ) | (12,131,340 | ) | |||||||
| Retained earnings |
21 | 24,935,298 | 22,938,268 | |||||||||
| Reserves |
22 | 2,169,412 | 2,025,682 | |||||||||
|
|
|
|
|
|||||||||
| Equity attributable to owners of the Parent Company |
13,284,851 | 12,863,103 | ||||||||||
| Non-controlling interests |
62,766 | 92,189 | ||||||||||
|
|
|
|
|
|||||||||
| Total Shareholders’ Equity |
13,347,617 | 12,955,292 | ||||||||||
|
|
|
|
|
|||||||||
| Total Liabilities and Shareholders’ Equity |
30,107,783 | |||||||||||
|
|
|
|
|
|||||||||
The accompanying notes are an integral part of the condensed consolidated interim financial statements.
2
Table of Contents
SK TELECOM CO., LTD. and its Subsidiaries
Condensed Consolidated Interim Statements of Income
For the three-month periods ended March 31, 2026 and 2025
| (In millions of won, except for earnings per share) | Note | 2026 | 2025 | |||||||||
| Operating revenue: |
4,30 | |||||||||||
| Revenue |
4,453,717 | |||||||||||
|
|
|
|
|
|||||||||
| Operating expenses: |
30 | |||||||||||
| Labor |
634,265 | 671,601 | ||||||||||
| Commission |
6 | 1,364,974 | 1,325,088 | |||||||||
| Depreciation and amortization |
846,511 | 867,191 | ||||||||||
| Network interconnection |
154,391 | 163,865 | ||||||||||
| Leased lines |
63,403 | 68,203 | ||||||||||
| Advertising |
27,554 | 33,924 | ||||||||||
| Rent |
34,874 | 35,683 | ||||||||||
| Cost of goods sold |
8 | 325,083 | 327,789 | |||||||||
| Others |
23 | 403,666 | 392,989 | |||||||||
|
|
|
|
|
|||||||||
| 3,854,721 | 3,886,333 | |||||||||||
|
|
|
|
|
|||||||||
| Operating profit |
4 | 537,591 | 567,384 | |||||||||
| Finance income |
4,25 | 45,060 | 43,701 | |||||||||
| Finance costs |
4,25 | (106,891 | ) | (110,700 | ) | |||||||
| Gain (loss) relating to investments in subsidiaries, associates and joint ventures, net |
4,10 | (15,131 | ) | 132 | ||||||||
| Other non-operating income |
4,24 | 12,419 | 14,224 | |||||||||
| Other non-operating expenses |
4,24 | (7,481 | ) | (6,861 | ) | |||||||
|
|
|
|
|
|||||||||
| Profit before income tax |
4 | 465,567 | 507,880 | |||||||||
| Income tax expense |
26 | 149,152 | 146,305 | |||||||||
|
|
|
|
|
|||||||||
| Profit for the period |
361,575 | |||||||||||
| Attributable to: |
||||||||||||
| Owners of the Parent Company |
364,422 | |||||||||||
| Non-controlling interests |
(5,974 | ) | (2,847 | ) | ||||||||
| Earnings per share: |
27 | |||||||||||
| Basic earnings per share (in won) |
1,689 | |||||||||||
| Diluted earnings per share (in won) |
1,488 | 1,684 | ||||||||||
The accompanying notes are an integral part of the condensed consolidated interim financial statements.
3
Table of Contents
SK TELECOM CO., LTD. and its Subsidiaries
Condensed Consolidated Interim Statements of Comprehensive Income
For the three-month periods ended March 31, 2026 and 2025
| (In millions of won) | Note | 2026 | 2025 | |||||||||
| Profit for the period |
361,575 | |||||||||||
| Other comprehensive income (loss): |
||||||||||||
| Items that will not be reclassified subsequently to profit or loss, net of taxes: |
||||||||||||
| Net change in accumulated other comprehensive income (loss) of investments in associates and joint ventures |
10,22 | (35,930 | ) | 28,108 | ||||||||
| Remeasurement of defined benefit plans |
(28,622 | ) | (22,333 | ) | ||||||||
| Valuation gain (loss) on financial assets at fair value through other comprehensive income |
22 | 55,137 | (25,605 | ) | ||||||||
| Items that are or may be reclassified subsequently to profit or loss, net of taxes: |
||||||||||||
| Net change in accumulated other comprehensive income (loss) of investments in associates and joint ventures |
10,22 | 70,939 | (246 | ) | ||||||||
| Net change in unrealized fair value of derivatives |
22 | 5,707 | 4,583 | |||||||||
| Foreign currency translation differences for foreign operations |
22 | 55,607 | (1,294 | ) | ||||||||
|
|
|
|
|
|||||||||
| Other comprehensive income (loss) for the period, net of taxes |
|
122,838 | (16,787 | ) | ||||||||
|
|
|
|
|
|||||||||
| Total comprehensive income |
|
344,788 | ||||||||||
|
|
|
|
|
|||||||||
| Total comprehensive income (loss) attributable to: |
||||||||||||
| Owners of the Parent Company |
347,317 | |||||||||||
| Non-controlling interests |
(6,457 | ) | (2,529 | ) | ||||||||
The accompanying notes are an integral part of the condensed consolidated interim financial statements.
4
Table of Contents
SK TELECOM CO., LTD. and its Subsidiaries
Condensed Consolidated Interim Statements of Changes in Equity
For the three-month periods ended March 31, 2026 and 2025
| (In millions of won) | Attributable to owners of the Parent Company | Non- controlling interests |
Total equity |
|||||||||||||||||||||||||||||
| Note | Share capital | Capital surplus and others |
Retained earnings |
Reserves | Sub-total | |||||||||||||||||||||||||||
| Balance as of January 1, 2025 |
(11,954,936 | ) | 22,976,127 | 646,943 | 11,698,627 | 129,007 | 11,827,634 | |||||||||||||||||||||||||
| Total comprehensive income (loss): |
||||||||||||||||||||||||||||||||
| Profit (loss) for the period |
— | — | 364,422 | — | 364,422 | (2,847 | ) | 361,575 | ||||||||||||||||||||||||
| Other comprehensive income (loss) |
10,22 | — | — | (24,814 | ) | 7,709 | (17,105 | ) | 318 | (16,787 | ) | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| — | — | 339,608 | 7,709 | 347,317 | (2,529 | ) | 344,788 | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Transactions with owners: |
||||||||||||||||||||||||||||||||
| Annual dividends |
— | — | (223,531 | ) | — | (223,531 | ) | (1,533 | ) | (225,064 | ) | |||||||||||||||||||||
| Share option |
20 | — | (107 | ) | — | — | (107 | ) | — | (107 | ) | |||||||||||||||||||||
| Interest on hybrid bonds |
— | — | (4,950 | ) | — | (4,950 | ) | — | (4,950 | ) | ||||||||||||||||||||||
| Changes in ownership in subsidiaries, etc. |
— | 1,990 | — | — | 1,990 | (2,434 | ) | (444 | ) | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| — | 1,883 | (228,481 | ) | — | (226,598 | ) | (3,967 | ) | (230,565 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Balance as of March 31, 2025 |
(11,953,053 | ) | 23,087,254 | 654,652 | 11,819,346 | 122,511 | 11,941,857 | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Balance as of January 1, 2026 |
(12,131,340 | ) | 22,938,268 | 2,025,682 | 12,863,103 | 92,189 | 12,955,292 | |||||||||||||||||||||||||
| Total comprehensive income (loss): |
||||||||||||||||||||||||||||||||
| Profit (loss) for the period |
— | — | 322,389 | — | 322,389 | (5,974 | ) | 316,415 | ||||||||||||||||||||||||
| Other comprehensive income (loss) |
10,22 | — | — | (20,409 | ) | 143,730 | 123,321 | (483 | ) | 122,838 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| — | — | 301,980 | 143,730 | 445,710 | (6,457 | ) | 439,253 | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Transactions with owners: |
||||||||||||||||||||||||||||||||
| Transfer from paid-in surplus to retained earnings |
— | (1,700,000 | ) | 1,700,000 | — | — | — | — | ||||||||||||||||||||||||
| Share option |
20 | — | (623 | ) | — | — | (623 | ) | — | (623 | ) | |||||||||||||||||||||
| Interest on hybrid bonds |
— | — | (4,950 | ) | — | (4,950 | ) | — | (4,950 | ) | ||||||||||||||||||||||
| Disposal of treasury shares |
19 | — | 1,191 | — | — | 1,191 | — | 1,191 | ||||||||||||||||||||||||
| Changes in ownership in subsidiaries, etc. |
— | (19,580 | ) | — | — | (19,580 | ) | (22,966 | ) | (42,546 | ) | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| — | (1,719,012 | ) | 1,695,050 | — | (23,962 | ) | (22,966 | ) | (46,928 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Balance as of March 31, 2026 |
(13,850,352 | ) | 24,935,298 | 2,169,412 | 13,284,851 | 62,766 | 13,347,617 | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
The accompanying notes are an integral part of the condensed consolidated interim financial statements.
5
Table of Contents
SK TELECOM CO., LTD. and its Subsidiaries
Condensed Consolidated Interim Statements of Cash Flows
For the three-month periods ended March 31, 2026 and 2025
| (In millions of won) | Note | 2026 | 2025 | |||||||||
| Cash flows from operating activities: |
||||||||||||
| Cash generated from operating activities: |
||||||||||||
| Profit for the period |
361,575 | |||||||||||
| Adjustments for income and expenses |
32 | 1,139,376 | 1,159,433 | |||||||||
| Changes in assets and liabilities related to operating activities |
32 | (291,760 | ) | (178,924 | ) | |||||||
|
|
|
|
|
|||||||||
| 1,164,031 | 1,342,084 | |||||||||||
| Interest received |
9,947 | 15,266 | ||||||||||
| Dividends received |
6,486 | 7,458 | ||||||||||
| Interest paid |
(94,165 | ) | (110,472 | ) | ||||||||
| Income tax paid |
(22,062 | ) | (2,304 | ) | ||||||||
|
|
|
|
|
|||||||||
| Net cash provided by operating activities |
1,064,237 | 1,252,032 | ||||||||||
|
|
|
|
|
|||||||||
| Cash flows from investing activities: |
||||||||||||
| Cash inflows from investing activities: |
||||||||||||
| Decrease in short-term financial instruments, net |
— | 109,390 | ||||||||||
| Proceeds from disposals of short-term investment securities |
26,624 | — | ||||||||||
| Collection of short-term loans |
37,589 | 28,004 | ||||||||||
| Proceeds from disposals of long-term investment securities |
14,643 | 1,937 | ||||||||||
| Proceeds from disposals of investments in associates and joint ventures |
9,275 | — | ||||||||||
| Proceeds from disposals of property and equipment |
2,455 | 4,134 | ||||||||||
| Proceeds from disposals of intangible assets |
1,222 | 4,468 | ||||||||||
| Proceeds from disposals of assets held for sale |
52 | — | ||||||||||
| Collection of long-term loans |
987 | 694 | ||||||||||
| Decrease in deposits |
1,488 | 2,888 | ||||||||||
| Proceeds from settlement of derivatives |
132 | 447 | ||||||||||
| Proceeds from disposals of subsidiaries |
— | 61,084 | ||||||||||
|
|
|
|
|
|||||||||
| 94,467 | 213,046 | |||||||||||
| Cash outflows for investing activities: |
||||||||||||
| Increase in short-term financial instruments, net |
(102,804 | ) | — | |||||||||
| Increase in long-term financial instruments |
(16 | ) | — | |||||||||
| Increase in short-term loans |
(45,624 | ) | (36,843 | ) | ||||||||
| Increase in long-term loans |
(2,395 | ) | (3,922 | ) | ||||||||
| Acquisitions of short-term investment securities |
(30,000 | ) | (40,000 | ) | ||||||||
| Acquisitions of long-term investment securities |
(2,779 | ) | (13,830 | ) | ||||||||
| Acquisitions of investments in associates and joint ventures |
(4,000 | ) | (1,006 | ) | ||||||||
| Acquisitions of property and equipment |
(361,282 | ) | (542,292 | ) | ||||||||
| Acquisitions of intangible assets |
(21,393 | ) | (11,068 | ) | ||||||||
| Increase in deposits |
(1,173 | ) | (8,466 | ) | ||||||||
| Cash decrease due to changes in consolidation scope |
— | (19,303 | ) | |||||||||
|
|
|
|
|
|||||||||
| (571,466 | ) | (676,730 | ) | |||||||||
|
|
|
|
|
|||||||||
| Net cash used in investing activities |
(463,684 | ) | ||||||||||
|
|
|
|
|
|||||||||
(Continued)
6
Table of Contents
SK TELECOM CO., LTD. and its Subsidiaries
Condensed Consolidated Interim Statements of Cash Flows, Continued
For the three-month periods ended March 31, 2026 and 20254
| (In millions of won) | Note | 2026 | 2025 | |||||||||
| Cash flows from financing activities: |
||||||||||||
| Cash inflows from financing activities: |
||||||||||||
| Proceeds from issuance of debentures |
430,303 | |||||||||||
| Proceeds from short-term borrowings, net |
— | 200,000 | ||||||||||
| Transactions with non-controlling shareholders |
— | 971 | ||||||||||
|
|
|
|
|
|||||||||
| 238,973 | 631,274 | |||||||||||
| Cash outflows for financing activities: |
||||||||||||
| Repayments of long-term payables – other |
(369,150 | ) | (369,150 | ) | ||||||||
| Repayments of debentures |
(380,000 | ) | (487,340 | ) | ||||||||
| Repayments of long-term borrowings |
(3,125 | ) | (203,125 | ) | ||||||||
| Payments of interest on hybrid bonds |
(4,950 | ) | (4,950 | ) | ||||||||
| Repayments of lease liabilities |
(92,066 | ) | (82,358 | ) | ||||||||
|
|
|
|
|
|||||||||
| (849,291 | ) | (1,146,923 | ) | |||||||||
|
|
|
|
|
|||||||||
| Net cash used in financing activities |
(610,318 | ) | (515,649 | ) | ||||||||
|
|
|
|
|
|||||||||
| Net increase (decrease) in cash and cash equivalents |
(23,080 | ) | 272,699 | |||||||||
| Cash and cash equivalents at beginning of the period |
1,490,024 | 2,023,721 | ||||||||||
| Effects of exchange rate changes on cash and cash equivalents |
11,128 | 819 | ||||||||||
| Cash and cash equivalents included in assets held for sale |
(3,392 | ) | — | |||||||||
|
|
|
|
|
|||||||||
| Cash and cash equivalents at end of the period |
2,297,239 | |||||||||||
|
|
|
|
|
|||||||||
The accompanying notes are an integral part of the condensed consolidated interim financial statements.
7
Table of Contents
SK TELECOM CO., LTD. and its Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements
March 31, 2026 and 2025
| 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 March 31, 2026, the Parent Company’s total issued shares are held by the following shareholders:
| Number of shares | Percentage of total shares issued (%) |
|||||||
| SK Inc. |
65,668,397 | 30.57 | ||||||
| National Pension Service |
16,817,486 | 7.83 | ||||||
| Institutional investors and other shareholders |
126,668,526 | 58.98 | ||||||
| Kakao Investment Co., Ltd. |
3,846,487 | 1.79 | ||||||
| Treasury shares |
1,789,157 | 0.83 | ||||||
|
|
|
|
|
|||||
| 214,790,053 | 100.00 | |||||||
|
|
|
|
|
|||||
These condensed consolidated interim financial statements comprise the Parent Company and its subsidiaries (collectively referred to as the “Group”).
8
Table of Contents
SK TELECOM CO., LTD. and its Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements
March 31, 2026 and 2025
| 1. | Reporting Entity, Continued |
| (2) | List of consolidated subsidiaries |
List of consolidated subsidiaries as of March 31, 2026 and December 31, 2025 is as follows:
| Ownership (%)(*1) | ||||||||||||||
| Subsidiary |
Location | Primary business |
Mar. 31, 2026 |
Dec. 31, 2025 |
||||||||||
| Subsidiaries owned by the Parent Company |
SK Telink Co., Ltd. |
Korea | International telecommunication and Mobile Virtual Network Operator service |
100.0 | 100.0 | |||||||||
| SK Broadband Co., Ltd.(*2) |
Korea | Fixed-line telecommunication services |
100.0 | 99.1 | ||||||||||
| 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 | ||||||||||
| Atlas Investment |
Cayman Islands |
Investment |
100.0 | 100.0 | ||||||||||
| SK Telecom Americas, Inc. |
USA | Information gathering and consulting |
100.0 | 100.0 | ||||||||||
| 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 |
USA | Investment |
100.0 | 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 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 Korea |
Korea | Software development and supply business |
100.0 | 100.0 | |||||||||
| Subsidiary owned by Atlas Investment |
Forest AI Investment |
Cayman Islands |
Investment |
100.0 | 100.0 | |||||||||
| Other(*3) |
SK Telecom Innovation Fund, L.P. |
USA | Investment |
100.0 | 100.0 | |||||||||
| (*1) | The ownership interest represents direct ownership interest in subsidiaries either by the Parent Company or subsidiaries of the Parent Company. |
| (*2) | Pursuant to a resolution of the Board of Directors on March 26, 2026, the Parent Company entered into a share swap agreement with SK Broadband Co., Ltd. through a small-scale and simplified share swap. Based on the terms and conditions of the agreement, the Parent Company concluded that, as of the agreement date, it had, in substance, an existing ownership interest in SK Broadband Co., Ltd. Accordingly, the shares were accounted for as the Parent Company’s ownership interest. |
| (*3) | Other is owned by Atlas Investment and another subsidiary of the Parent Company. |
9
Table of Contents
SK TELECOM CO., LTD. and its Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements
March 31, 2026 and 2025
| 1. | Reporting Entity, Continued |
| (3) | Condensed financial information of subsidiaries |
| 1) | Condensed financial information of significant consolidated subsidiaries as of and for the three-month period ended March 31, 2026 is as follows: |
| (In millions of won) | ||||||||||||||||||||
| As of March 31, 2026 | For the three-month period ended March 31, 2026 |
|||||||||||||||||||
| Subsidiary |
Total assets | Total liabilities |
Total equity |
Revenue | Profit (loss) |
|||||||||||||||
| SK Telink Co., Ltd. |
118,128 | 93,576 | 76,440 | 3,554 | ||||||||||||||||
| SK Broadband Co., Ltd. |
7,039,345 | 4,153,291 | 2,886,054 | 1,153,198 | 72,815 | |||||||||||||||
| PS&Marketing Corporation |
536,608 | 287,273 | 249,335 | 380,735 | 5,359 | |||||||||||||||
| SERVICE ACE Co., Ltd. |
86,383 | 63,618 | 22,765 | 44,702 | 187 | |||||||||||||||
| SERVICE TOP Co., Ltd. |
63,506 | 41,465 | 22,041 | 37,159 | 695 | |||||||||||||||
| SK O&S Co., Ltd. |
99,052 | 66,289 | 32,763 | 72,228 | (593 | ) | ||||||||||||||
| Home & Service Co., Ltd. |
137,873 | 99,310 | 38,563 | 128,829 | 1,004 | |||||||||||||||
| SK stoa Co., Ltd. |
133,206 | 61,378 | 71,828 | 73,118 | 4,681 | |||||||||||||||
| 2) | Condensed financial information of significant consolidated subsidiaries as of December 31, 2025 and for the three-month period ended March 31, 2025 is as follows: |
| (In millions of won) | ||||||||||||||||||||
| As of December 31, 2025 | For the three-month period ended March 31, 2025 |
|||||||||||||||||||
| Subsidiary |
Total assets | Total liabilities |
Total equity |
Revenue | Profit (loss) |
|||||||||||||||
| SK Telink Co., Ltd. |
62,038 | 143,934 | 88,090 | 4,306 | ||||||||||||||||
| SK Broadband Co., Ltd. |
6,824,041 | 4,011,668 | 2,812,373 | 1,115,660 | 64,702 | |||||||||||||||
| PS&Marketing Corporation |
454,512 | 210,013 | 244,499 | 350,887 | 4,203 | |||||||||||||||
| SERVICE ACE Co., Ltd. |
97,050 | 68,222 | 28,828 | 48,396 | 593 | |||||||||||||||
| SERVICE TOP Co., Ltd. |
69,385 | 46,453 | 22,932 | 41,970 | 550 | |||||||||||||||
| SK O&S Co., Ltd. |
124,327 | 87,023 | 37,304 | 72,641 | 542 | |||||||||||||||
| Home & Service Co., Ltd. |
148,382 | 110,021 | 38,361 | 129,286 | (66 | ) | ||||||||||||||
| SK stoa Co., Ltd. |
134,596 | 67,405 | 67,191 | 76,515 | 3,530 | |||||||||||||||
| SK m&service Co., Ltd.(*) |
— | — | — | 46,240 | (4,407 | ) | ||||||||||||||
| (*) | The condensed financial information of SK m&service Co., Ltd. represents the financial information up to the date of disposal. |
| (4) | Changes in subsidiaries |
There was no subsidiary newly included or excluded in the condensed consolidated interim financial statements for the three-month period ended March 31, 2026.
10
Table of Contents
SK TELECOM CO., LTD. and its Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements
March 31, 2026 and 2025
| 2. | Basis of Preparation |
| (1) | Statement of compliance |
These condensed consolidated interim financial statements were prepared in accordance with Korean International Financial Reporting Standard (“KIFRS”) 1034 Interim Financial Reporting as part of the period covered by the Group’s KIFRS annual financial statements. These condensed consolidated interim financial statements do not include all of the disclosures required for full annual financial statements. Selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in financial position and performance of the Group since December 31, 2025. The accompanying condensed consolidated interim financial statements have been translated into English from the Korean language financial statements.
| (2) | Use of estimates and judgments |
| 1) | Critical judgments, assumptions and estimation uncertainties |
The preparation of the condensed consolidated interim financial statements in conformity with KIFRS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.
In preparing these condensed consolidated interim financial statements, the significant judgments made by management in applying the Group’s accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements as of and for the year ended December 31, 2025.
11
Table of Contents
SK TELECOM CO., LTD. and its Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements
March 31, 2026 and 2025
| 2. | Basis of Preparation, Continued |
| (2) | Use of estimates and judgments, Continued |
| 2) | 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 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 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, 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). |
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.
The information about assumptions used for fair value measurements is included in note 29.
12
Table of Contents
SK TELECOM CO., LTD. and its Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements
March 31, 2026 and 2025
| 3. | Material Accounting Policies |
The material accounting policies applied by the Group in these condensed consolidated interim 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, 2025, except for the adoption of new and revised KIFRS applied from January 1, 2026, which are summarized below.
| (1) | New and amended standards and interpretations applied by the Group |
The Group has applied the following new and amended standards and interpretations for annual period beginning after January 1, 2026. The following amended KIFRS is effective from January 1, 2026 and it did not have a material impact on the Group’s condensed consolidated interim financial statements.
| • | Classification and measurement of financial instruments (Amendments to KIFRS 1109 ‘Financial Instruments’ and KIFRS 1107 ‘Financial Instruments: Disclosures’) |
| • | Contracts referencing nature-dependent electricity (Amendments to KIFRS 1109 ‘Financial Instruments’ and KIFRS 1107 ‘Financial Instruments: Disclosures’) |
| • | Annual Improvements to KIFRS - Volume 11 |
| (2) | New and amended standards and interpretations that are issued, but not yet applied by the Group |
The new and amended standard and interpretation that is issued, but not yet effective is disclosed below.
| • | KIFRS 1118 ‘Presentation and Disclosure in Financial Statements’ |
KIFRS 1118 ‘Presentation and Disclosure in Financial Statements’ replaces KIFRS 1001 ‘Presentation of Financial Statements’. KIFRS 1118 is expected to enhance comparability of financial performance among similar entities by providing useful information to users in analyzing and comparing an entity’s financial performance, with a focus on the statement of profit or loss.
KIFRS 1118 shall be applied for annual periods beginning on or after January 1, 2027, and earlier application is permitted. An entity shall apply this standard retrospectively in accordance with KIFRS 1008 ‘Accounting Policies, Changes in Accounting Estimates and Errors’. Accordingly, comparative information for the annual period ended December 31, 2026 will be restated in accordance with KIFRS 1118.
The Group is currently analyzing the key accounting policies that are expected to result in significant differences from those applied in the current financial statements upon adoption of KIFRS 1118.
13
Table of Contents
SK TELECOM CO., LTD. and its Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements
March 31, 2026 and 2025
| 4. | Operating Segments |
The Group’s operating segments have been identified to be each business unit, by which the Group provides different services and sells merchandise. The Group’s reportable segments include: cellular services, which mainly include cellular voice service, wireless data service and wireless internet services; fixed-line telecommunication services, which mainly 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 three-month periods ended March 31, 2026 and 2025 are as follows: |
| (In millions of won) | ||||||||||||||||||||||||
| For the three-month period ended March 31, 2026 | ||||||||||||||||||||||||
| Cellular services |
Fixed-line telecommunication services |
Others | Sub-total | Elimination | Total | |||||||||||||||||||
| Total revenue |
1,361,902 | 77,193 | 5,079,708 | (687,396 | ) | 4,392,312 | ||||||||||||||||||
| Inter-segment revenue |
371,825 | 312,667 | 2,904 | 687,396 | (687,396 | ) | — | |||||||||||||||||
| External revenue |
3,268,788 | 1,049,235 | 74,289 | 4,392,312 | — | 4,392,312 | ||||||||||||||||||
| Operating profit |
414,888 | 120,700 | 2,652 | 538,240 | (649 | ) | 537,591 | |||||||||||||||||
| Finance income (costs), net |
(61,831 | ) | ||||||||||||||||||||||
| Loss relating to investments in associates and joint ventures, net |
|
(15,131 | ) | |||||||||||||||||||||
| Other non-operating income (expense), net |
|
4,938 | ||||||||||||||||||||||
| Profit before income tax |
|
465,567 | ||||||||||||||||||||||
| (In millions of won) | ||||||||||||||||||||||||
| For the three-month period ended March 31, 2025 | ||||||||||||||||||||||||
| Cellular services |
Fixed-line telecommunication services |
Others | Sub-total | Elimination | Total | |||||||||||||||||||
| Total revenue |
1,337,053 | 130,617 | 5,149,018 | (695,301 | ) | 4,453,717 | ||||||||||||||||||
| Inter-segment revenue |
377,926 | 302,999 | 14,376 | 695,301 | (695,301 | ) | — | |||||||||||||||||
| External revenue |
3,303,422 | 1,034,054 | 116,241 | 4,453,717 | — | 4,453,717 | ||||||||||||||||||
| Operating profit (loss) |
485,129 | 101,028 | (6,948 | ) | 579,209 | (11,825 | ) | 567,384 | ||||||||||||||||
| Finance income (costs), net |
(66,999 | ) | ||||||||||||||||||||||
| Gain relating to investments in subsidiaries, associates and joint ventures, net |
|
132 | ||||||||||||||||||||||
| Other non-operating income (expense), net |
|
7,363 | ||||||||||||||||||||||
| Profit before income tax |
|
507,880 | ||||||||||||||||||||||
14
Table of Contents
SK TELECOM CO., LTD. and its Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements
March 31, 2026 and 2025
| 4. | Operating Segments, Continued |
| (1) | Segment information for the three-month periods ended March 31, 2026 and 2025 are as follows, Continued: |
The Group principally operates its businesses in Korea, and substantially all of its operations are conducted in Korea, with activities outside Korea being immaterial. Therefore, no entity-wide geographical information is presented.
No single customer contributed 10% or more to the Group’s total revenue for the three-month period ended March 31, 2026 and for the year ended December 31, 2025.
| (2) | Disaggregation of operating revenues considering the economic factors that affect the nature, amounts, timing and uncertainty of the Group’s revenue and future cash flows is as follows: |
| (In millions of won) | For the three-month period ended | |||||||||
| March 31, 2026 | March 31, 2025 | |||||||||
| Goods and Services transferred at a point in time: |
| |||||||||
| Cellular revenue |
Goods and others(*1) |
270,881 | ||||||||
| Fixed-line telecommunication revenue |
Goods and others | 26,997 | 15,753 | |||||||
| Other revenue |
Others(*2) | 73,067 | 88,991 | |||||||
|
|
|
|
|
|||||||
| 392,833 | 375,625 | |||||||||
|
|
|
|
|
|||||||
| Goods and Services transferred over time: |
| |||||||||
| Cellular revenue |
Wireless service(*3) |
2,520,900 | 2,593,267 | |||||||
| Cellular interconnection |
88,823 | 94,999 | ||||||||
| Other(*4) |
366,296 | 344,275 | ||||||||
| Fixed-line telecommunication revenue |
Fixed-line service |
31,162 | 39,345 | |||||||
| Cellular interconnection |
3,244 | 3,452 | ||||||||
| Internet Protocol Television(*5) |
452,691 | 456,284 | ||||||||
| International calls |
40,406 | 50,804 | ||||||||
| Internet service and miscellaneous(*6) |
494,735 | 468,417 | ||||||||
| Other revenue |
Miscellaneous |
1,222 | 27,249 | |||||||
|
|
|
|
|
|||||||
| 3,999,479 | 4,078,092 | |||||||||
|
|
|
|
|
|||||||
| 4,453,717 | ||||||||||
|
|
|
|
|
|||||||
15
Table of Contents
SK TELECOM CO., LTD. and its Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements
March 31, 2026 and 2025
| 4. | Operating Segments, Continued |
| (2) | Disaggregation of operating revenues considering the economic factors that affect the nature, amounts, timing 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. |
| (*2) | Other revenue includes revenue from considerations received for providing data-broadcasting channel and broadcasting services for product sale programs, as well as revenue from the sale of goods through data-broadcasting channel. |
| (*3) | Wireless service revenue includes revenue from wireless voice and data transmission services, which is collected from the wireless subscribers. |
| (*4) | Other revenue includes revenue from billing and collection services, solution services, and other miscellaneous services. |
| (*5) | Internet Protocol Television (“IPTV”) service revenue includes revenue from IPTV services principally derived from usage charges to IPTV subscribers. |
| (*6) | Internet service and miscellaneous revenue includes revenue from high speed broadband internet service principally derived from usage charges to subscribers as well as other miscellaneous services. |
16
Table of Contents
SK TELECOM CO., LTD. and its Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements
March 31, 2026 and 2025
| 5. | Trade and Other Receivables |
| (1) | Details of trade and other receivables as of March 31, 2026 and December 31, 2025 are as follows: |
| (In millions of won) | March 31, 2026 | |||||||||||
| Gross amount |
Loss allowance |
Carrying amount |
||||||||||
| Current assets: |
||||||||||||
| Accounts receivable – trade |
(277,692 | ) | 1,958,799 | |||||||||
| Short-term loans |
80,202 | (710 | ) | 79,492 | ||||||||
| Accounts receivable – other(*) |
552,073 | (21,570 | ) | 530,503 | ||||||||
| Accrued income |
1,635 | — | 1,635 | |||||||||
| Guarantee deposits (Other current assets) |
99,010 | — | 99,010 | |||||||||
|
|
|
|
|
|
|
|||||||
| 2,969,411 | (299,972 | ) | 2,669,439 | |||||||||
| Non-current assets: |
||||||||||||
| Long-term loans |
51,118 | (19,246 | ) | 31,872 | ||||||||
| Long-term accounts receivable – other |
171,621 | — | 171,621 | |||||||||
| Guarantee deposits |
165,440 | — | 165,440 | |||||||||
| Long-term accounts receivable – trade (Other non-current assets) |
8,704 | (2 | ) | 8,702 | ||||||||
|
|
|
|
|
|
|
|||||||
| 396,883 | (19,248 | ) | 377,635 | |||||||||
|
|
|
|
|
|
|
|||||||
| (319,220 | ) | 3,047,074 | ||||||||||
|
|
|
|
|
|
|
|||||||
| (*) | Gross and carrying amounts of accounts receivable – other as of March 31, 2026 include
|
| (In millions of won) | December 31, 2025 | |||||||||||
| Gross amount |
Loss allowance |
Carrying amount |
||||||||||
| Current assets: |
||||||||||||
| Accounts receivable – trade |
(267,481 | ) | 1,918,502 | |||||||||
| Short-term loans |
70,271 | (607 | ) | 69,664 | ||||||||
| Accounts receivable – other(*) |
366,785 | (20,459 | ) | 346,326 | ||||||||
| Accrued income |
1,998 | — | 1,998 | |||||||||
| Guarantee deposits (Other current assets) |
102,396 | — | 102,396 | |||||||||
|
|
|
|
|
|
|
|||||||
| 2,727,433 | (288,547 | ) | 2,438,886 | |||||||||
| Non-current assets: |
||||||||||||
| Long-term loans |
51,431 | (19,247 | ) | 32,184 | ||||||||
| Long-term accounts receivable – other |
164,762 | — | 164,762 | |||||||||
| Guarantee deposits |
167,823 | — | 167,823 | |||||||||
| Long-term accounts receivable – trade (Other non-current assets) |
8,402 | (1 | ) | 8,401 | ||||||||
|
|
|
|
|
|
|
|||||||
| 392,418 | (19,248 | ) | 373,170 | |||||||||
|
|
|
|
|
|
|
|||||||
| (307,795 | ) | 2,812,056 | ||||||||||
|
|
|
|
|
|
|
|||||||
| (*) | Gross and carrying amounts of accounts receivable – other as of December 31, 2025 include
|
17
Table of Contents
SK TELECOM CO., LTD. and its Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements
March 31, 2026 and 2025
| 5. | Trade and Other Receivables, Continued |
| (2) | Changes in the loss allowance on trade and other receivables measured at amortized cost for the three-month periods ended March 31, 2026 and 2025 are as follows: |
| (In millions of won) | ||||||||||||||||||||||||
| For the three-month period ended March 31, 2026 | ||||||||||||||||||||||||
| Beginning balance |
Impairment | Write-offs(*) | Collection of receivables previously written- off |
Transfer | Ending balance |
|||||||||||||||||||
| Accounts receivable – trade |
10,214 | (1,671 | ) | 1,854 | (185 | ) | 277,694 | |||||||||||||||||
| Accounts receivable – other, etc. |
40,313 | 1,208 | (56 | ) | 64 | (3 | ) | 41,526 | ||||||||||||||||
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| 11,422 | (1,727 | ) | 1,918 | (188 | ) | 319,220 | ||||||||||||||||||
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| (In millions of won) | ||||||||||||||||||||
| For the three-month period ended March 31, 2025 | ||||||||||||||||||||
| Beginning balance |
Impairment | Write-offs(*) | Collection of receivables previously written- off |
Ending balance |
||||||||||||||||
| Accounts receivable – trade |
7,502 | (2,372 | ) | 2,178 | 265,338 | |||||||||||||||
| Accounts receivable – other, etc. |
67,586 | 858 | (72 | ) | 190 | 68,562 | ||||||||||||||
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| 8,360 | (2,444 | ) | 2,368 | 333,900 | ||||||||||||||||
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| (*) | The Group writes off the trade and other receivables that are determined to be uncollectable due to reasons 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 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 years and classifies the accounts receivable – trade by their credit risk characteristics and days overdue. |
Due to the nature of its business, which involves both fixed-line and wireless telecommunications, the Group’s accounts receivables from telecommunications revenue primarily consist of receivables from individual customers. As there are no significant differences in credit terms among customers, there is no material concentration of credit risk.
Receivables related to other revenue mainly consist of receivables from corporate customers. The Group transacts only with corporate customers whose credit risk is assessed as low. In addition, the Group is not exposed to significant credit concentration risk as the Group monitors the credit ratings of these customers on a regular basis and evaluates their creditworthiness accordingly. Although contract assets are subject to the expected credit loss assessment, no significant credit risk has been identified.
18
Table of Contents
SK TELECOM CO., LTD. and its Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements
March 31, 2026 and 2025
| 6. | Prepaid Expenses |
The Group pays commissions to its retail stores and authorized dealers, primarily for wireless and fixed-line telecommunication services based on their performance of attracting new customers and renewing contracts with existing customers. The Group recognizes costs among the commissions that would not have incurred if a contract had not been entered into with a customer as prepaid expenses. These prepaid expenses are amortized on a straight-line basis over the expected customer retention periods.
| (1) | Details of prepaid expenses as of March 31, 2026 and December 31, 2025 are as follows: |
| (In millions of won) | ||||||||
| March 31, 2026 | December 31, 2025 | |||||||
| Current assets: |
| |||||||
| Incremental costs of obtaining contracts |
2,061,667 | |||||||
| Others |
104,782 | 74,096 | ||||||
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| 2,135,763 | ||||||||
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| Non-current assets: |
| |||||||
| Incremental costs of obtaining contracts |
1,208,600 | |||||||
| Others |
66,503 | 72,151 | ||||||
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| 1,280,751 | ||||||||
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| (2) | Incremental costs of obtaining contracts |
Amortization in connection with incremental costs of obtaining contracts recognized as an asset for the three-month periods ended March 31, 2026 and 2025 are as follows:
| (In millions of won) | For the three-month period ended | |||||||
| March 31, 2026 | March 31, 2025 | |||||||
| Amortization recognized |
626,412 | |||||||
19
Table of Contents
SK TELECOM CO., LTD. and its Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements
March 31, 2026 and 2025
| 7. | Contract Assets and Liabilities |
In case of providing both wireless telecommunication services and sales of handsets, the Group allocated the consideration based on relative stand-alone selling prices and recognized unbilled receivables from handset sales as contract assets. The Group recognized receipts in advance for prepaid telecommunications services and solution services, and unearned revenue for customer loyalty programs as contract liabilities.
| (1) | Details of contract assets and liabilities as of March 31, 2026 and December 31, 2025 are as follows: |
| (In millions of won) | ||||||||
| March 31, 2026 | December 31, 2025 | |||||||
| Contract assets |
188,609 | |||||||
| Contract liabilities: |
||||||||
| Wireless service contracts |
22,539 | 21,807 | ||||||
| Customer loyalty programs |
6,184 | 5,920 | ||||||
| Fixed-line service contracts |
377,116 | 288,421 | ||||||
| Others |
66,395 | 85,795 | ||||||
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| 401,943 | ||||||||
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| (2) | Amounts of revenue recognized for the three-month periods ended March 31, 2026 and 2025 related to the
contract liabilities carried forward from the prior periods are |
| 8. | Inventories |
| (1) | Details of inventories as of March 31, 2026 and December 31, 2025 are as follows: |
| (In millions of won) | ||||||||||||||||||||||||
| March 31, 2026 | December 31, 2025 | |||||||||||||||||||||||
| Acquisition cost |
Valuation allowance |
Carrying amount |
Acquisition cost |
Valuation allowance |
Carrying amount |
|||||||||||||||||||
| Merchandise |
(6,291 | ) | 185,214 | 160,996 | (6,942 | ) | 154,054 | |||||||||||||||||
| Supplies |
16,857 | — | 16,857 | 13,586 | — | 13,586 | ||||||||||||||||||
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| (6,291 | ) | 202,071 | 174,582 | (6,942 | ) | 167,640 | ||||||||||||||||||
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| (2) | Inventories recognized as operating expenses for the three-month periods ended March 31, 2026 and 2025 are
|
20
Table of Contents
SK TELECOM CO., LTD. and its Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements
March 31, 2026 and 2025
| 9. | Investment Securities |
| (1) | Details of short-term investment securities as of March 31, 2026 and December 31, 2025 are as follows: |
| (In millions of won) | ||||||||||||
| Category | March 31, 2026 | December 31, 2025 | ||||||||||
| Beneficiary certificates |
FVTPL | 35,217 | ||||||||||
| (2) | Details of long-term investment securities as of March 31, 2026 and December 31, 2025 are as follows: |
| (In millions of won) | ||||||||||||
| Category | March 31, 2026 | December 31, 2025 | ||||||||||
| Equity instruments |
FVOCI | (*) | 3,025,988 | |||||||||
| Debt instruments |
FVTPL | 158,142 | 162,584 | |||||||||
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| 3,188,572 | ||||||||||||
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| (*) | The Group designated investments in equity instruments that are not held for trading as financial assets at FVOCI. |
21
Table of Contents
SK TELECOM CO., LTD. and its Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements
March 31, 2026 and 2025
| 10. | Investments in Associates and Joint Ventures |
| (1) | Investments in associates and joint ventures accounted for using the equity method as of March 31, 2026 and December 31, 2025 are as follows: |
| (In millions of won) | March 31, 2026 | December 31, 2025 | ||||||||||||||||||
| Country | Ownership (%) |
Carrying amount |
Ownership (%) |
Carrying amount |
||||||||||||||||
| Investments in associates: |
||||||||||||||||||||
| SK China Company Ltd. |
China | 27.3 | 27.3 | |||||||||||||||||
| Korea IT Fund(*1) |
Korea | 63.3 | 370,563 | 63.3 | 370,482 | |||||||||||||||
| UniSK |
China | 49.0 | 29,736 | 49.0 | 26,442 | |||||||||||||||
| SK Technology Innovation Company(*2) |
Cayman Islands | 49.0 | 26,974 | 49.0 | 33,523 | |||||||||||||||
| SK MENA Investment B.V. |
Netherlands | 32.1 | 6,953 | 32.1 | 6,612 | |||||||||||||||
| SK South East Asia Investment Pte. Ltd. |
Singapore | 20.0 | 390,182 | 20.0 | 368,776 | |||||||||||||||
| Citadel Pacific Telecom Holdings, LLC(*3) |
USA | 15.0 | 58,787 | 15.0 | 55,167 | |||||||||||||||
| SM Culture & Contents Co., Ltd. |
Korea | 22.8 | 29,496 | 22.8 | 29,305 | |||||||||||||||
| Home Choice Corp.(*3) |
Korea | 17.8 | 1,282 | 17.8 | 2,773 | |||||||||||||||
| Konan Technology Inc.(*3) |
Korea | 18.9 | 4,479 | 18.9 | 5,070 | |||||||||||||||
| CMES Robotics Inc. (Formerly, CMES Inc.)(*3) |
Korea | 6.5 | 6,692 | 6.5 | 6,999 | |||||||||||||||
| SK Japan Inc. (Formerly, SK telecom Japan Inc.) |
Japan | 24.9 | 3,867 | 24.9 | 3,629 | |||||||||||||||
| Rebellions Inc.(*3) |
Korea | 18.1 | 169,325 | 18.2 | 187,466 | |||||||||||||||
| SK m&service Co., Ltd. |
Korea | 30.0 | 24,434 | 30.0 | 24,551 | |||||||||||||||
| Start-up Win-Win Fund and others(*3,4) |
— | — | 70,890 | — | 65,661 | |||||||||||||||
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| Investments in joint ventures: |
||||||||||||||||||||
| UTC Kakao-SK Telecom ESG Fund(*5) |
Korea | 48.2 | 5,602 | 48.2 | 6,111 | |||||||||||||||
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22
Table of Contents
SK TELECOM CO., LTD. and its Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements
March 31, 2026 and 2025
| 10. | Investments in Associates and Joint Ventures, Continued |
| (1) | Investments in associates and joint ventures accounted for using the equity method as of March 31, 2026 and December 31, 2025 are as follows, Continued: |
| (*1) | Investment in Korea IT Fund was classified as investment in associates as the Group does not have control over the investee under the contractual agreement with other shareholders. |
| (*2) | The Group received |
| (*3) | These investments were classified as investments in associates as the Group can exercise significant influence through its right to appoint the members of the board of directors even though the Group has less than 20% of equity interests. |
| (*4) | The Group newly contributed |
| (*5) | This investment was classified as investment in joint venture as the Group has a joint control pursuant to the agreement with the other shareholders. |
| (2) | Market value of investments in listed associates as of March 31, 2026 and December 31, 2025 are as follows: |
| (In millions of won, except for share data) | ||||||||||||||||||||||||
| March 31, 2026 | December 31, 2025 | |||||||||||||||||||||||
| Market price per share (in won) |
Number of shares |
Market value |
Market price per share (in won) |
Number of shares |
Market value |
|||||||||||||||||||
| SM Culture & Contents Co., Ltd. |
22,033,898 | 24,061 | 1,330 | 22,033,898 | 29,305 | |||||||||||||||||||
| Konan Technology Inc. |
17,610 | 2,359,160 | 41,545 | 19,710 | 2,359,160 | 46,499 | ||||||||||||||||||
| CMES Robotics Inc. (Formerly, CMES Inc.) |
29,200 | 763,968 | 22,308 | 33,100 | 763,968 | 25,287 | ||||||||||||||||||
23
Table of Contents
SK TELECOM CO., LTD. and its Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements
March 31, 2026 and 2025
| 10. | Investments in Associates and Joint Ventures, Continued |
| (3) | Reconciliations of financial information of material associates to carrying amounts of investments in associates in the consolidated financial statements as of March 31, 2026 and December 31, 2025 are as follows: |
| (In millions of won) | ||||||||||||||||||||
| March 31, 2026 | ||||||||||||||||||||
| Net assets | Ownership interests (%) |
Net assets attributable to the ownership interests |
Cost-book value differentials |
Carrying amount |
||||||||||||||||
| Korea IT Fund |
63.3 | 370,563 | — | 370,563 | ||||||||||||||||
| SK China Company Ltd. |
3,537,551 | 27.3 | 964,733 | 107,233 | 1,071,966 | |||||||||||||||
| SK South East Asia Investment Pte. Ltd.(*1) |
1,950,910 | 20.0 | 390,182 | — | 390,182 | |||||||||||||||
| Rebellions Inc.(*2,3) |
(506,451 | ) | 18.1 | (177,903 | ) | 347,228 | 169,325 | |||||||||||||
| (*1) | Net assets of the entity represent net assets excluding those attributable to the non-controlling interests. |
| (*2) | Net assets of the entity exclude the goodwill held by Rebellions Inc. at the time the investment in the associate was recognized. |
| (*3) | The ownership interest is based on the number of shares owned by the Parent Company divided by the total shares issued by the investee, and the effective ownership interest applied for the equity method is 35.1% as of March 31, 2026. |
24
Table of Contents
SK TELECOM CO., LTD. and its Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements
March 31, 2026 and 2025
| 10. | Investments in Associates and Joint Ventures, Continued |
| (3) | Reconciliations of financial information of material associates to carrying amounts of investments in associates in the consolidated financial statements as of March 31, 2026 and December 31, 2025 are as follows, Continued: |
| (In millions of won) | ||||||||||||||||||||
| December 31, 2025 | ||||||||||||||||||||
| Net assets | Ownership interests (%) |
Net assets attributable to the ownership interests |
Cost-book value differentials |
Carrying amount |
||||||||||||||||
| Korea IT Fund |
63.3 | 370,482 | — | 370,482 | ||||||||||||||||
| SK China Company Ltd. |
3,461,533 | 27.3 | 944,111 | 101,792 | 1,045,903 | |||||||||||||||
| SK South East Asia Investment Pte. Ltd.(*1) |
1,843,880 | 20.0 | 368,776 | — | 368,776 | |||||||||||||||
| Rebellions Inc.(*2,3) |
(462,479 | ) | 18.2 | (163,255 | ) | 350,721 | 187,466 | |||||||||||||
| (*1) | Net assets of the entity represent net assets excluding those attributable to the non-controlling interests. |
| (*2) | Net assets of the entity exclude the goodwill held by Rebellions Inc. at the time the investment in the associate was recognized. |
| (*3) | The ownership interest is based on the number of shares owned by the Parent Company divided by the total shares issued by the investee, and the effective ownership interest applied for the equity method is 35.3% as of December 31, 2025. |
25
Table of Contents
SK TELECOM CO., LTD. and its Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements
March 31, 2026 and 2025
| 10. | Investments in Associates and Joint Ventures, Continued |
| (4) | Changes in investments in associates and joint ventures accounted for using the equity method for the three-month periods ended March 31, 2026 and 2025 are as follows: |
| (In millions of won) | For the three-month period ended March 31, 2026 | |||||||||||||||||||
| Beginning balance |
Acquisition and disposal |
Share of profit (loss) |
Other compre- hensive income (loss) |
Ending balance |
||||||||||||||||
| Investments in associates: |
||||||||||||||||||||
| SK China Company Ltd. |
— | 2,658 | 23,405 | 1,071,966 | ||||||||||||||||
| Korea IT Fund |
370,482 | — | 81 | — | 370,563 | |||||||||||||||
| UniSK |
26,442 | — | 1,445 | 1,849 | 29,736 | |||||||||||||||
| SK Technology Innovation Company |
33,523 | (7,754 | ) | (362 | ) | 1,567 | 26,974 | |||||||||||||
| SK MENA Investment B.V. |
6,612 | — | (13 | ) | 354 | 6,953 | ||||||||||||||
| SK South East Asia Investment Pte. Ltd. |
368,776 | — | 1,192 | 20,214 | 390,182 | |||||||||||||||
| Citadel Pacific Telecom Holdings, LLC |
55,167 | — | (896 | ) | 4,516 | 58,787 | ||||||||||||||
| SM Culture & Contents Co., Ltd. |
29,305 | — | 112 | 79 | 29,496 | |||||||||||||||
| Home Choice Corp. |
2,773 | — | (1,415 | ) | (76 | ) | 1,282 | |||||||||||||
| Konan Technology Inc. |
5,070 | — | (591 | ) | — | 4,479 | ||||||||||||||
| CMES Robotics Inc. (Formerly, CMES Inc.) |
6,999 | 16 | (322 | ) | (1 | ) | 6,692 | |||||||||||||
| SK Japan Inc. (Formerly, SK telecom Japan Inc.) |
3,629 | — | 121 | 117 | 3,867 | |||||||||||||||
| Rebellions Inc. |
187,466 | (762 | ) | (16,409 | ) | (970 | ) | 169,325 | ||||||||||||
| SK m&service Co., Ltd |
24,551 | — | 50 | (167 | ) | 24,434 | ||||||||||||||
| Start-up Win-Win Fund and others |
65,661 | 4,000 | 454 | 775 | 70,890 | |||||||||||||||
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| 2,232,359 | (4,500 | ) | (13,895 | ) | 51,662 | 2,265,626 | ||||||||||||||
| Investments in joint ventures: |
||||||||||||||||||||
| UTC Kakao-SK Telecom ESG Fund |
6,111 | — | (509 | ) | — | 5,602 | ||||||||||||||
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| (4,500 | ) | (14,404 | ) | 51,662 | 2,271,228 | |||||||||||||||
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26
Table of Contents
SK TELECOM CO., LTD. and its Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements
March 31, 2026 and 2025
| 10. | Investments in Associates and Joint Ventures, Continued |
| (4) | Changes in investments in associates and joint ventures accounted for using the equity method for the three-month periods ended March 31, 2026 and 2025 are as follows, Continued: |
| (In millions of won) | For the three-month period ended March 31, 2025 | |||||||||||||||||||||||
| Beginning balance |
Acquisition and disposal |
Share of profit (loss) |
Other compre- hensive income (loss) |
Other changes |
Ending balance |
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| Investments in associates: |
||||||||||||||||||||||||
| SK China Company Ltd. |
— | 103 | 26,530 | — | 1,002,076 | |||||||||||||||||||
| Korea IT Fund |
363,138 | — | 185 | — | — | 363,323 | ||||||||||||||||||
| UniSK |
26,031 | — | (10 | ) | 230 | — | 26,251 | |||||||||||||||||
| SK Technology Innovation Company |
34,516 | — | 1,197 | (71 | ) | — | 35,642 | |||||||||||||||||
| SK MENA Investment B.V. |
17,273 | — | 86 | (41 | ) | (11,041 | ) | 6,277 | ||||||||||||||||
| SK Latin America Investment S.A. |
1,357 | — | 445 | 58 | — | 1,860 | ||||||||||||||||||
| SK South East Asia Investment Pte. Ltd. |
391,572 | — | (3,655 | ) | (2,106 | ) | — | 385,811 | ||||||||||||||||
| Citadel Pacific Telecom Holdings, LLC |
51,780 | — | 2,383 | (1,607 | ) | — | 52,556 | |||||||||||||||||
| SM Culture & Contents Co., Ltd. |
39,567 | — | (3,630 | ) | (154 | ) | — | 35,783 | ||||||||||||||||
| Nam Incheon Broadcasting Co., Ltd.(*1) |
15,635 | — | (34 | ) | — | (137 | ) | 15,464 | ||||||||||||||||
| Home Choice Corp. |
3,238 | — | (107 | ) | — | — | 3,131 | |||||||||||||||||
| Konan Technology Inc. |
3,575 | — | (865 | ) | — | — | 2,710 | |||||||||||||||||
| CMES Robotics Inc. (Formerly, CMES Inc.) |
4,772 | 3,418 | (440 | ) | 1 | — | 7,751 | |||||||||||||||||
| SK Japan Inc. (Formerly, SK telecom Japan Inc.) |
3,703 | — | (102 | ) | 175 | — | 3,776 | |||||||||||||||||
| Rebellions Inc. |
298,327 | — | (6,321 | ) | — | — | 292,006 | |||||||||||||||||
| SK m&service Co., Ltd(*2) |
— | — | (138 | ) | (498 | ) | 23,566 | 22,930 | ||||||||||||||||
| Start-up Win-Win Fund and others(*3,4) |
102,702 | 1,006 | (807 | ) | (289 | ) | (36,811 | ) | 65,801 | |||||||||||||||
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| 2,332,629 | 4,424 | (11,710 | ) | 22,228 | (24,423 | ) | 2,323,148 | |||||||||||||||||
| Investments in joint ventures: |
||||||||||||||||||||||||
| UTC Kakao-SK Telecom ESG Fund |
9,198 | — | (530 | ) | — | — | 8,668 | |||||||||||||||||
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| 4,424 | (12,240 | ) | 22,228 | (24,423 | ) | 2,331,816 | ||||||||||||||||||
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| (*1) | Dividends received from the associate are deducted from the carrying amount for the three-month period ended March 31, 2025. |
| (*2) | The Group disposed of a portion of shares in SK m&service Co., Ltd., which was an indirect subsidiary of the Parent Company, for the three-month period ended March 31, 2025, resulting in the reclassification of the remaining shares as an investment in associate as of March 31, 2025. |
| (*3) | The acquisition for the three-month period ended March 31, 2025 includes
|
| (*4) | The Group reclassified the entire shares of id Quantique SA as assets held for sale. |
27
Table of Contents
SK TELECOM CO., LTD. and its Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements
March 31, 2026 and 2025
| 11. | Property and Equipment |
Changes in property and equipment for the three-month periods ended March 31, 2026 and 2025 are as follows:
| (In millions of won) | ||||||||
| For the three-month period ended | ||||||||
| March 31, 2026 | March 31, 2025 | |||||||
| Beginning balance |
12,617,394 | |||||||
| Acquisition |
214,845 | 164,297 | ||||||
| Disposal |
(66,282 | ) | (22,039 | ) | ||||
| Depreciation |
(682,903 | ) | (695,685 | ) | ||||
| Impairment |
— | (359 | ) | |||||
| Transfer(*) |
(19,116 | ) | (81,190 | ) | ||||
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|||||
| Ending balance |
11,982,418 | |||||||
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|||||
| (*) | Transfer includes transfers to intangible assets, transfers to or from investment properties, transfers to assets held for sale, and others. |
| 12. | Investment Property |
Changes in investment property for the three-month periods ended March 31, 2026 and 2025 are as follows:
| (In millions of won) | ||||||||
| For the three-month period ended | ||||||||
| March 31, 2026 | March 31, 2025 | |||||||
| Beginning balance |
26,611 | |||||||
| Depreciation |
(1,511 | ) | (612 | ) | ||||
| Transfer(*) |
(11,758 | ) | 11,593 | |||||
|
|
|
|
|
|||||
| Ending balance |
37,592 | |||||||
|
|
|
|
|
|||||
| (*) | Transfer includes transfers to or from property and equipment, transfers to assets held for sale, and others. |
28
Table of Contents
SK TELECOM CO., LTD. and its Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements
March 31, 2026 and 2025
| 13. | Leases |
| (1) | Details of the right-of-use assets as of March 31, 2026 and December 31, 2025 are as follows: |
| (In millions of won) | ||||||||
| March 31, 2026 | December 31, 2025 | |||||||
| Right-of-use assets: |
||||||||
| Land, buildings and structures |
1,157,029 | |||||||
| Others |
226,423 | 215,496 | ||||||
|
|
|
|
|
|||||
| 1,372,525 | ||||||||
|
|
|
|
|
|||||
| (2) | Details of amounts recognized in the condensed consolidated interim statements of income for the three-month periods ended March 31, 2026 and 2025 as a lessee are as follows: |
| (In millions of won) | ||||||||
| For the three-month period ended | ||||||||
| March 31, 2026 | March 31, 2025 | |||||||
| Depreciation of right-of-use assets: |
||||||||
| Land, buildings and structures |
90,867 | |||||||
| Others(*) |
14,537 | 15,532 | ||||||
|
|
|
|
|
|||||
| 106,399 | ||||||||
|
|
|
|
|
|||||
| Interest expense on lease liabilities |
12,166 | |||||||
| (*) | Others include the amount reclassified as research and development expenses related to the lease contract for research and development facilities. |
Expenses related to short-term leases and leases of low-value assets that the Group recognized are immaterial.
29
Table of Contents
SK TELECOM CO., LTD. and its Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements
March 31, 2026 and 2025
| 14. | Intangible Assets |
| (1) | Changes in intangible assets for the three-month periods ended March 31, 2026 and 2025 are as follows: |
| (In millions of won) | ||||||||
| For the three-month period ended | ||||||||
| March 31, 2026 | March 31, 2025 | |||||||
| Beginning balance |
2,194,871 | |||||||
| Acquisition |
19,812 | 9,869 | ||||||
| Disposal |
(721 | ) | (1,757 | ) | ||||
| Amortization |
(194,216 | ) | (200,665 | ) | ||||
| Transfer(*) |
14,740 | 71,411 | ||||||
|
|
|
|
|
|||||
| Ending balance |
2,073,729 | |||||||
|
|
|
|
|
|||||
| (*) | Transfer includes transfers from property and equipment, and others. |
| (2) | Details of frequency usage rights as of March 31, 2026 are as follows: |
| (In millions of won) | ||||||||||||||||
| Amount | Amortization methods | Commencement of amortization |
Completion of amortization |
|||||||||||||
| 800 MHz license |
Jul. 2021 | Jun. 2026 | ||||||||||||||
| 1.8 GHz license |
70,522 | Dec. 2021 | Dec. 2026 | |||||||||||||
| 2.6 GHz license |
91,055 | Straight-line basis | Sep. 2016 | Dec. 2026 | ||||||||||||
| 2.1 GHz license |
53,001 | Dec. 2021 | Dec. 2026 | |||||||||||||
| 3.5 GHz license |
321,164 | Apr. 2019 | Nov. 2028 | |||||||||||||
|
|
|
|||||||||||||||
|
|
|
|||||||||||||||
30
Table of Contents
SK TELECOM CO., LTD. and its Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements
March 31, 2026 and 2025
| 15. | Borrowings and Debentures |
| (1) | Short-term borrowings as of March 31, 2026 and December 31, 2025 are as follows: |
| (In millions of won) | ||||||||||||||
| Lender |
Annual interest rate (%) |
Maturity | March 31, 2026 |
December 31, 2025 |
||||||||||
| Bank of China Ltd. |
2.83 | Oct. 29, 2026 | 130,000 | |||||||||||
| (2) | Changes in long-term borrowings for the three-month period ended March 31, 2026 are as follows: |
| (In millions of won) | ||||||||||||||||
| Lender | Annual interest rate (%) |
Maturity | Book value | |||||||||||||
| Current |
||||||||||||||||
| Non-current |
300,000 | |||||||||||||||
|
|
|
|||||||||||||||
| As of January 1, 2026 |
|
503,125 | ||||||||||||||
|
|
|
|||||||||||||||
| Repayments of long-term borrowings: |
| |||||||||||||||
| Korea Development Bank(*) | 1.87 | Feb. 10, 2026 | (3,125 | ) | ||||||||||||
| Current |
200,000 | |||||||||||||||
| Non-current |
300,000 | |||||||||||||||
|
|
|
|||||||||||||||
| As of March 31, 2026 |
|
|||||||||||||||
|
|
|
|||||||||||||||
| (*) | The long-term borrowing was repaid by installments on an annual basis from 2022 to 2026 and was fully repaid at maturity during the three-month period ended March 31, 2026. |
31
Table of Contents
SK TELECOM CO., LTD. and its Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements
March 31, 2026 and 2025
| 15. | Borrowings and Debentures, Continued |
| (3) | Changes in debentures for the three-month period ended March 31, 2026 are as follows: |
| (In millions of won) | ||||||||||||||||||
| Purpose |
Annual interest rate (%) |
Maturity | Face value | Book value | ||||||||||||||
| Current |
919,459 | |||||||||||||||||
| Non-current |
7,314,900 | 7,294,445 | ||||||||||||||||
|
|
|
|
|
|||||||||||||||
| As of January 1, 2026 |
8,236,908 | 8,213,904 | ||||||||||||||||
| Debentures newly issued: |
| |||||||||||||||||
| Unsecured corporate bonds(*1) |
Facility fund | 3.94 | Feb. 12, 2031 | 210,000 | 209,154 | |||||||||||||
| Unsecured corporate bonds(*1) |
Facility fund | 4.21 | Feb. 12, 2036 | 30,000 | 29,819 | |||||||||||||
|
|
|
|
|
|||||||||||||||
| 240,000 | 238,973 | |||||||||||||||||
|
|
|
|
|
|||||||||||||||
| Debentures repaid: |
| |||||||||||||||||
| Unsecured corporate bonds |
Operating fund | 2.08 | Mar. 4, 2026 | (90,000 | ) | (90,000 | ) | |||||||||||
| Unsecured corporate bonds |
Refinancing fund | 1.39 | Jan. 15, 2026 | (80,000 | ) | (80,000 | ) | |||||||||||
| Unsecured corporate bonds |
Refinancing fund | 3.65 | Feb. 17, 2026 | (110,000 | ) | (110,000 | ) | |||||||||||
| Unsecured corporate bonds(*1) |
Operating and refinancing fund |
4.28 | Feb. 27, 2026 | (100,000 | ) | (100,000 | ) | |||||||||||
|
|
|
|
|
|||||||||||||||
| (380,000 | ) | (380,000 | ) | |||||||||||||||
|
|
|
|
|
|||||||||||||||
| Other changes(*2) |
|
78,883 | 80,576 | |||||||||||||||
| Current(*3) |
892,391 | 889,769 | ||||||||||||||||
| Non-current(*3) |
7,283,400 | 7,263,684 | ||||||||||||||||
|
|
|
|
|
|||||||||||||||
| As of March 31, 2026 |
8,153,453 | |||||||||||||||||
|
|
|
|
|
|||||||||||||||
| (*1) | Unsecured corporate bonds were issued by SK Broadband Co., Ltd., a subsidiary of the Parent Company. |
| (*2) | Other changes primarily reflect foreign currency translation effect of debentures and amortization of debentures issuance discount for the three-month period ended March 31, 2026. |
| (*3) |
|
32
Table of Contents
SK TELECOM CO., LTD. and its Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements
March 31, 2026 and 2025
| 16. | Long-term Payables – Other |
| (1) | As of March 31, 2026 and December 31, 2025, details of long-term payables – other which consist of payables related to the acquisition of frequency usage rights are as follows (See note 14): |
| (In millions of won) | ||||||||
| March 31, 2026 |
December 31, 2025 |
|||||||
| Long-term payables – other |
551,925 | |||||||
| Present value discount on long-term payables – other |
(2,786 | ) | (3,964 | ) | ||||
| Current portion of long-term payables – other |
(90,218 | ) | (368,572 | ) | ||||
|
|
|
|
|
|||||
| Carrying amount at period end |
179,389 | |||||||
|
|
|
|
|
|||||
| (2) | Repayments of the principal portion of long-term payables – other amounted to
|
| (In millions of won) | ||||
| Amount | ||||
| Less than 1 year |
||||
| 1~3 years |
91,387 | |||
|
|
|
|||
|
|
|
|||
33
Table of Contents
SK TELECOM CO., LTD. and its Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements
March 31, 2026 and 2025
| 17. | Provisions |
Changes in provisions for the three-month periods ended March 31, 2026 and 2025 are as follows:
| (In millions of won) | ||||||||||||||||||||||||
| For the three-month period ended March 31, 2026 | ||||||||||||||||||||||||
| Beginning balance |
Increase | Utilization | Reversal | Other | Ending balance |
|||||||||||||||||||
| Provision for restoration |
1,519 | (1,769 | ) | (157 | ) | 5 | 117,181 | |||||||||||||||||
| Emission allowance |
530 | 1,108 | — | — | — | 1,638 | ||||||||||||||||||
| Other provisions |
107,934 | — | (2,308 | ) | (13 | ) | — | 105,613 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| 2,627 | (4,077 | ) | (170 | ) | 5 | 224,432 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| (In millions of won) | ||||||||||||||||||||
| For the three-month period ended March 31, 2025 | ||||||||||||||||||||
| Beginning balance |
Increase | Utilization | Reversal | Ending balance |
||||||||||||||||
| Provision for restoration |
1,549 | (1,669 | ) | (585 | ) | 118,918 | ||||||||||||||
| Emission allowance |
437 | 535 | — | (1 | ) | 971 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| 2,084 | (1,669 | ) | (586 | ) | 119,889 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| 18. | Defined Benefit Assets |
| (1) | Details of defined benefit assets as of March 31, 2026 and December 31, 2025 are as follows: |
| (In millions of won) | ||||||||
| March 31, 2026 | December 31, 2025 | |||||||
| Present value of defined benefit obligations |
1,051,508 | |||||||
| Fair value of plan assets |
(1,154,243 | ) | (1,256,985 | ) | ||||
|
|
|
|
|
|||||
| (205,477 | ) | |||||||
|
|
|
|
|
|||||
| (2) | Total cost of defined benefit plan, which is recognized in profit or loss for the three-month periods ended March 31, 2026 and 2025 are as follows: |
| (In millions of won) | ||||||||
| For the three-month period ended | ||||||||
| March 31, 2026 | March 31, 2025 | |||||||
| Current service cost |
31,762 | |||||||
| Net interest income |
(1,885 | ) | (1,309 | ) | ||||
|
|
|
|
|
|||||
| 30,453 | ||||||||
|
|
|
|
|
|||||
34
Table of Contents
SK TELECOM CO., LTD. and its Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements
March 31, 2026 and 2025
| 19. | Share Capital and Capital Surplus and Others |
| (1) | The Parent Company’s outstanding share capital consists of shares with a par value of
|
| (In millions of won, except for share data) | ||||||||
| March 31, 2026 | December 31, 2025 | |||||||
| Number of authorized shares |
670,000,000 | 670,000,000 | ||||||
| Number of issued shares |
214,790,053 | 214,790,053 | ||||||
| Share capital: |
||||||||
| Common shares(*1) |
30,493 | |||||||
| Capital surplus and others: |
||||||||
| Paid-in surplus(*2) |
71,000 | 1,771,000 | ||||||
| Treasury shares |
(87,989 | ) | (88,533 | ) | ||||
| Hybrid bonds(*3) |
398,509 | 398,509 | ||||||
| Share option(Note 20) |
14,203 | 14,511 | ||||||
| Others(*4) |
(14,246,075 | ) | (14,226,827 | ) | ||||
|
|
|
|
|
|||||
| (12,131,340 | ) | |||||||
|
|
|
|
|
|||||
| (*1) | In 2002, 2003 and 2024, the Parent Company retired treasury shares with reduction of its retained earnings before appropriation. As a result, the Group’s issued shares have decreased without change in share capital. |
| (*2) |
|
| (*3) | As the Parent Company has no contractual obligation to deliver cash or other financial assets to the holders of its hybrid bonds, the instruments are classified as equity. In the event of liquidation or bankruptcy, the hybrid bonds rank senior only to common shares. |
| (*4) | The amount includes a change in equity amounting to |
35
Table of Contents
SK TELECOM CO., LTD. and its Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements
March 31, 2026 and 2025
| 19. | Share Capital and Capital Surplus and Others, Continued |
| (2) | There were no changes in share capital for the three-month periods ended March 31, 2026 and 2025, and details of shares outstanding as of March 31, 2026 and 2025 are as follows: |
| (In shares) | March 31, 2026 | March 31, 2025 | ||||||||||||||||||||||
| Issued shares |
Treasury shares |
Outstanding shares |
Issued shares |
Treasury shares |
Outstanding shares |
|||||||||||||||||||
| Shares outstanding |
214,790,053 | 1,789,157 | 213,000,896 | 214,790,053 | 1,903,711 | 212,886,342 | ||||||||||||||||||
| (3) | Details of treasury shares as of March 31, 2026 and December 31, 2025 are as follows: |
| (In millions of won, except for share data) | ||||||||
| March 31, 2026 | December 31, 2025 | |||||||
| Number of shares(*) |
1,789,157 | 1,807,778 | ||||||
| Acquisition cost |
88,533 | |||||||
| (*) | The Parent Company granted 18,621 treasury shares (acquisition cost: |
36
Table of Contents
SK TELECOM CO., LTD. and its Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements
March 31, 2025 and 2024
| 20. | Share-based payment arrangement |
The Parent Company operates various share-based payment arrangements to align the interests
of management with shareholders and to link executive compensation to the growth of corporate value. The Parent Company has recognized WW
There were no changes in the number of equity-settled share-based payment arrangements for the three-month periods ended March 31, 2026 and 2025, and the changes in the number of share-based payment arrangements with cash alternatives were as follows:
| (In shares) | For the three-month period ended | |||||||
| March 31, 2026 | March 31, 2025 | |||||||
| Beginning balance |
299,918 | 637,326 | ||||||
| Exercised |
(99,688 | ) | — | |||||
|
|
|
|
|
|||||
| Ending balance |
200,230 | 637,326 | ||||||
|
|
|
|
|
|||||
| 21. | Retained Earnings |
Retained earnings as of March 31, 2026 and December 31, 2025 are as follows:
| (In millions of won) | ||||||||
| March 31, 2026 | December 31, 2025 | |||||||
| Appropriated: |
||||||||
| Legal reserve |
22,320 | |||||||
| Reserve |
15,096,438 | 14,996,438 | ||||||
|
|
|
|
|
|||||
| 15,118,758 | 15,018,758 | |||||||
| Unappropriated |
9,816,540 | 7,919,510 | ||||||
|
|
|
|
|
|||||
| 22,938,268 | ||||||||
|
|
|
|
|
|||||
37
Table of Contents
SK TELECOM CO., LTD. and its Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements
March 31, 2026 and 2025
| 22. | Reserves |
| (1) | Details of reserves, net of taxes, as of March 31, 2026 and December 31, 2025 are as follows: |
| (In millions of won) | ||||||||
| March 31, 2026 | December 31, 2025 | |||||||
| Valuation gain on FVOCI |
1,570,314 | |||||||
| Other comprehensive income of investments in associates and joint ventures |
407,098 | 368,213 | ||||||
| Valuation gain on derivatives |
20,188 | 14,503 | ||||||
| Foreign currency translation differences for foreign operations |
124,873 | 72,652 | ||||||
|
|
|
|
|
|||||
| 2,025,682 | ||||||||
|
|
|
|
|
|||||
| (2) | Changes in reserves for the three-month periods ended March 31, 2026 and 2025 are as follows: |
| (In millions of won) | ||||||||||||||||||||
| Valuation gain (loss) on financial assets at FVOCI |
Other comprehensive income of investments in associates and joint ventures |
Valuation gain (loss) on derivatives |
Foreign currency translation differences for foreign operations |
Total | ||||||||||||||||
| Balance as of January 1, 2025 |
315,283 | (8,044 | ) | 77,047 | 646,943 | |||||||||||||||
| Changes, net of taxes |
(23,115 | ) | 27,862 | 4,542 | (1,580 | ) | 7,709 | |||||||||||||
| Balance as of March 31, 2025 |
343,145 | (3,502 | ) | 75,467 | 654,652 | |||||||||||||||
| Balance as of January 1, 2026 |
368,213 | 14,503 | 72,652 | 2,025,682 | ||||||||||||||||
| Changes, net of taxes |
46,939 | 38,885 | 5,685 | 52,221 | 143,730 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Balance as of March 31, 2026 |
407,098 | 20,188 | 124,873 | 2,169,412 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
38
Table of Contents
SK TELECOM CO., LTD. and its Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements
March 31, 2026 and 2025
| 23. | Other Operating Expenses |
Details of other operating expenses for the three-month periods ended March 31, 2026 and 2025 are as follows:
| (In millions of won) | For the three-month period ended | |||||||
| March 31, 2026 | March 31, 2025 | |||||||
| Communication |
7,787 | |||||||
| Utilities |
146,634 | 134,672 | ||||||
| Taxes and dues |
12,559 | 12,865 | ||||||
| Repair |
100,250 | 100,749 | ||||||
| Research and development |
86,607 | 89,912 | ||||||
| Training |
7,550 | 7,050 | ||||||
| Bad debt for accounts receivable – trade |
10,214 | 7,502 | ||||||
| Travel |
3,651 | 4,490 | ||||||
| Supplies and others |
28,555 | 27,962 | ||||||
|
|
|
|
|
|||||
| 392,989 | ||||||||
|
|
|
|
|
|||||
| 24. | Other Non-Operating Income and Expenses |
Details of other non-operating income and expenses for the three-month periods ended March 31, 2026 and 2025 are as follows:
| (In millions of won) | For the three-month period ended | |||||||
| March 31, 2026 | March 31, 2025 | |||||||
| Other Non-Operating Income: |
||||||||
| Gain on disposal of property and equipment and intangible assets |
7,703 | |||||||
| Others |
4,471 | 6,521 | ||||||
|
|
|
|
|
|||||
| 14,224 | ||||||||
|
|
|
|
|
|||||
| Other Non-Operating Expenses: |
||||||||
| Loss on disposal of property and equipment and intangible assets |
2,159 | |||||||
| Loss on impairment of property and equipment and intangible assets |
— | 359 | ||||||
| Loss on impairment of assets held for sale |
2,094 | — | ||||||
| Donations |
2,520 | 2,357 | ||||||
| Bad debt for accounts receivable – other |
1,208 | 858 | ||||||
| Others |
295 | 1,128 | ||||||
|
|
|
|
|
|||||
| 6,861 | ||||||||
|
|
|
|
|
|||||
39
Table of Contents
SK TELECOM CO., LTD. and its Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements
March 31, 2026 and 2025
| 25. | Finance Income and Costs |
| (1) | Details of finance income and costs for the three-month periods ended March 31, 2026 and 2025 are as follows: |
| (In millions of won) | For the three-month period ended | |||||||
| March 31, 2026 | March 31, 2025 | |||||||
| Finance Income: |
||||||||
| Interest income |
18,572 | |||||||
| Dividends |
18,435 | 19,812 | ||||||
| Gain on foreign currency transactions |
7,278 | 2,709 | ||||||
| Gain on foreign currency translations |
3,818 | 2,464 | ||||||
| Gain relating to financial instruments at FVTPL |
823 | 144 | ||||||
|
|
|
|
|
|||||
| 43,701 | ||||||||
|
|
|
|
|
|||||
| Finance Costs: |
||||||||
| Interest expenses |
97,629 | |||||||
| Loss on sale of accounts receivable – other |
3,777 | 4,943 | ||||||
| Loss on foreign currency transactions |
6,506 | 6,891 | ||||||
| Loss on foreign currency translations |
1,655 | 606 | ||||||
| Loss relating to financial instruments at FVTPL |
5,271 | 153 | ||||||
| Loss on repayment of debentures |
— | 478 | ||||||
|
|
|
|
|
|||||
| 110,700 | ||||||||
|
|
|
|
|
|||||
| (2) | Details of interest income included in finance income for the three-month periods ended March 31, 2026 and 2025 are as follows: |
| (In millions of won) | For the three-month period ended | |||||||
| March 31, 2026 | March 31, 2025 | |||||||
| Interest income on cash equivalents and financial instruments |
12,508 | |||||||
| Interest income on loans and others |
6,699 | 6,064 | ||||||
|
|
|
|
|
|||||
| 18,572 | ||||||||
|
|
|
|
|
|||||
40
Table of Contents
SK TELECOM CO., LTD. and its Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements
March 31, 2026 and 2025
| 25. | Finance Income and Costs, Continued |
| (3) | Details of interest expenses included in finance costs for the three-month periods ended March 31, 2026 and 2025 are as follows: |
| (In millions of won) | For the three-month period ended | |||||||
| March 31, 2026 | March 31, 2025 | |||||||
| Interest expense on borrowings |
8,317 | |||||||
| Interest expense on debentures |
68,126 | 67,735 | ||||||
| Others |
15,708 | 21,577 | ||||||
|
|
|
|
|
|||||
| 97,629 | ||||||||
|
|
|
|
|
|||||
| (4) | Details of impairment losses for financial assets for the three-month periods ended March 31, 2026 and 2025 are as follows: |
| (In millions of won) | For the three-month period ended | |||||||
| March 31, 2026 | March 31, 2025 | |||||||
| Accounts receivable – trade |
7,502 | |||||||
| Other receivables |
1,208 | 858 | ||||||
|
|
|
|
|
|||||
| 8,360 | ||||||||
|
|
|
|
|
|||||
| 26. | Income Tax Expense |
The income tax expense was calculated by considering current tax expense, adjusted for changes in estimates related to prior periods, and deferred tax expense due to origination and reversal of temporary differences and income tax expense that relates to items recognized outside profit or loss.
41
Table of Contents
SK TELECOM CO., LTD. and its Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements
March 31, 2026 and 2025
| 27. | Earnings per Share |
Earnings per share is calculated for profit attributable to owners of the Parent Company per common share and dilutive potential common share, and details are as follows:
| (1) | Basic earnings per share |
Basic earnings per share for the three-month periods ended March 31, 2026 and 2025 are calculated as follows:
| (In millions of won, except for share data and basic earnings per share) | For the three-month period ended | |||||||
| March 31, 2026 | March 31, 2025 | |||||||
| Basic earnings per share attributable to owners of the Parent Company: |
| |||||||
| Profit attributable to owners of the Parent Company |
364,422 | |||||||
| Interest on hybrid bonds |
(4,950 | ) | (4,950 | ) | ||||
|
|
|
|
|
|||||
| Profit attributable to owners of the Parent Company on common shares |
317,439 | 359,472 | ||||||
| Weighted average number of common shares outstanding (in shares)(*) |
212,989,275 | 212,886,342 | ||||||
|
|
|
|
|
|||||
| Basic earnings per share (in won) |
1,689 | |||||||
|
|
|
|
|
|||||
| (*) | Weighted average number of common shares outstanding reflects adjustments for changes in the number of treasury shares for the three-month periods ended March 31, 2026 and 2025. |
| (2) | Diluted earnings per share |
Diluted earnings per share for the three-month periods ended March 31, 2026 and 2025 are calculated as follows:
| (In millions of won, except for share data and diluted earnings per share) | For the three-month period ended | |||||||
| March 31, 2026 | March 31, 2025 | |||||||
| Profit attributable to owners of the Parent Company on common shares |
359,472 | |||||||
| Adjusted weighted average number of common shares outstanding (in shares)(*) |
213,273,001 | 213,455,085 | ||||||
|
|
|
|
|
|||||
| Diluted earnings per share (in won) |
1,684 | |||||||
|
|
|
|
|
|||||
| (*) | Diluted earnings per share is calculated by applying the weighted average number of ordinary shares outstanding, adjusted for the assumed conversion of all dilutive potential ordinary shares into ordinary shares. |
42
Table of Contents
SK TELECOM CO., LTD. and its Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements
March 31, 2026 and 2025
| 28. | Categories of Financial Instruments |
| (1) | Financial assets by category as of March 31, 2026 and December 31, 2025 are as follows: |
| (In millions of won) | March 31, 2026 | |||||||||||||||||||
| Financial assets at FVTPL |
Equity instruments at FVOCI |
Financial assets at amortized cost |
Derivatives hedging instrument |
Total | ||||||||||||||||
| Cash and cash equivalents(*1) |
— | 592,173 | — | 1,474,680 | ||||||||||||||||
| Short-term investment securities |
38,858 | — | — | — | 38,858 | |||||||||||||||
| Financial instruments(*1) |
5,500 | — | 254,116 | — | 259,616 | |||||||||||||||
| Long-term investment securities(*2) |
158,142 | 3,129,548 | — | — | 3,287,690 | |||||||||||||||
| Accounts receivable – trade(*1) |
— | — | 1,967,501 | — | 1,967,501 | |||||||||||||||
| Loans and other receivables(*1) |
335,873 | — | 737,453 | — | 1,073,326 | |||||||||||||||
| Derivative financial assets |
108,737 | — | — | 284,813 | 393,550 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| 3,129,548 | 3,551,243 | 284,813 | 8,495,221 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| (*1) | Financial assets reclassified as assets held for sale as of March 31, 2026 are not included. |
| (*2) | The Group designated |
| (In millions of won) | December 31, 2025 | |||||||||||||||||||
| Financial assets at FVTPL |
Equity instruments at FVOCI |
Financial assets at amortized cost |
Derivatives hedging instrument |
Total | ||||||||||||||||
| Cash and cash equivalents(*1) |
— | 832,119 | — | 1,490,024 | ||||||||||||||||
| Short-term investment securities |
35,217 | — | — | — | 35,217 | |||||||||||||||
| Financial instruments(*1) |
13,000 | — | 138,796 | — | 151,796 | |||||||||||||||
| Long-term investment securities(*2) |
162,584 | 3,025,988 | — | — | 3,188,572 | |||||||||||||||
| Accounts receivable – trade(*1) |
— | — | 1,926,903 | — | 1,926,903 | |||||||||||||||
| Loans and other receivables(*1) |
189,963 | — | 682,449 | — | 872,412 | |||||||||||||||
| Derivative financial assets |
108,884 | — | — | 201,262 | 310,146 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| 3,025,988 | 3,580,267 | 201,262 | 7,975,070 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| (*1) | Financial assets reclassified as assets held for sale as of December 31, 2025 are not included. |
| (*2) | The Group designated |
43
Table of Contents
SK TELECOM CO., LTD. and its Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements
March 31, 2026 and 2025
| 28. | Categories of Financial Instruments, Continued |
| (2) | Financial liabilities by category as of March 31, 2026 and December 31, 2025 are as follows: |
| (In millions of won) | March 31, 2026 | |||||||||||||||
| Financial liabilities at FVTPL |
Financial liabilities at amortized cost |
Derivatives hedging instrument |
Total | |||||||||||||
| Accounts payable – trade |
205,569 | — | 205,569 | |||||||||||||
| Derivative financial liabilities |
6,066 | — | 225 | 6,291 | ||||||||||||
| Borrowings |
— | 630,000 | — | 630,000 | ||||||||||||
| Debentures |
— | 8,153,453 | — | 8,153,453 | ||||||||||||
| Lease liabilities(*1,2) |
— | 1,432,271 | — | 1,432,271 | ||||||||||||
| Accounts payable - other and others(*2) |
— | 2,945,213 | — | 2,945,213 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| 13,366,506 | 225 | 13,372,797 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| (*1) | The categorization of financial liabilities is not applicable to lease liabilities, but they are classified as financial liabilities measured at amortized cost, considering the nature of measuring liabilities. |
| (*2) | Financial liabilities reclassified as liabilities held for sale as of March 31, 2026 are not included. |
| (In millions of won) | December 31, 2025 | |||||||||||||||
| Financial liabilities at FVTPL |
Financial liabilities at amortized cost |
Derivatives hedging instrument |
Total | |||||||||||||
| Accounts payable – trade |
110,867 | — | 110,867 | |||||||||||||
| Derivative financial liabilities |
5,782 | — | 621 | 6,403 | ||||||||||||
| Borrowings |
— | 633,125 | — | 633,125 | ||||||||||||
| Debentures |
— | 8,213,904 | — | 8,213,904 | ||||||||||||
| Lease liabilities(*1,2) |
— | 1,525,798 | — | 1,525,798 | ||||||||||||
| Accounts payable - other and others(*2) |
— | 3,506,048 | — | 3,506,048 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| 13,989,742 | 621 | 13,996,145 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| (*1) | The categorization of financial liabilities is not applicable to lease liabilities, but they are classified as 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, 2025 are not included. |
44
Table of Contents
SK TELECOM CO., LTD. and its Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements
March 31, 2026 and 2025
| 29. | Financial Risk Management |
| (1) | Financial risk management |
The Group is exposed to market risk, credit risk and liquidity risk. Market risk refers to the risk of fluctuations in market variables such as foreign exchange rates, interest rates and the prices of financial instruments. The Group has established a risk management framework to monitor and manage these risks on an ongoing basis.
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 – other and others, borrowings, debentures, lease liabilities and others.
| 1) | Market risk |
| (i) | Currency risk |
The Group is exposed to foreign currency risk arising from revenues and expenses denominated in foreign currencies in the course of its global operations. The primary foreign currencies in which such risk arises are the USD, EUR and others. The Group establishes its currency risk management policy by considering the nature of each business and the availability of hedging or risk-mitigating strategies for each Group entity. The Group regularly monitors, evaluates, and manages its foreign currency exposures through established risk management processes for receivables and payables denominated in foreign currencies. Currency risk arises from both forecasted transactions and recognized assets and liabilities which are denominated in a currency other than the functional currency of each Group entity.
The Group has entered into cross currency swaps to hedge against currency risk related to foreign currency debentures.
As of March 31, 2026, 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) | Profit before income tax | Equity | ||||||||||||||
| If increased by 10% | If decreased by 10% | If increased by 10% | If decreased by 10% | |||||||||||||
| USD |
(7,957 | ) | (5,854 | ) | ||||||||||||
| EUR |
1,075 | (1,075 | ) | 791 | (791 | ) | ||||||||||
| Others |
20 | (20 | ) | 15 | (15 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| (9,052) | (6,660) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
45
Table of Contents
SK TELECOM CO., LTD. and its Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements
March 31, 2026 and 2025
| 29. | Financial Risk Management, Continued |
| (1) | Financial risk management, Continued |
1) Market risk, Continued
(ii) Interest rate risk
The Group is exposed to interest rate risk arising from its borrowings, debentures and long-term payables – other. As the Group’s interest-bearing assets are predominantly fixed-rate instruments, changes in market interest rates do not have a significant impact on the Group’s revenue or operating cash flows.
The Group conducts various analyses to manage interest rate risk and optimize its financing structure. To mitigate the impact of interest rate fluctuations, the Group employs a range of strategies, including refinancing, renewing existing borrowings, alternative financing arrangements and hedging.
As of March 31, 2026, the par values of floating-rate borrowings and debentures amount to
WW
As of March 31, 2026, the par values of floating-rate long-term payables – other amount to
W
| (In millions of won) | Profit before income tax | Equity | ||||||||||||||
| If increased by 1%p | If decreased by 1%p | If increased by 1%p | If decreased by 1%p | |||||||||||||
| 457 | 336 | |||||||||||||||
(iii) Price fluctuations risk
As of March 31, 2026, the Group holds equity instruments that are traded in an active market and is therefore exposed to the risk of fluctuations in market prices. 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 for the three-month period ended March 31, 2026 is as follows.
| (In millions of won) | Profit before income tax | Equity | ||||||||||||||
| If increased by 10% | If decreased by 10% | If increased by 10% | If decreased by 10% | |||||||||||||
| — | (75,527 | ) | ||||||||||||||
46
Table of Contents
SK TELECOM CO., LTD. and its Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements
March 31, 2026 and 2025
| 29. | Financial Risk Management, Continued |
| (1) | Financial risk management, Continued |
| 2) | Credit risk |
Credit risk refers to the risk that the Group will suffer financial losses due to the failure of the customer or counterparty to fulfill their contractual obligations on the financial instrument. 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.
The Group recognizes a loss allowance for accounts receivable – trade. The allowance consists of a specific component for individually significant exposures and a collective component for groups of similar assets where credit losses are expected to occur. The collective loss allowance is determined based on historical data of collection statistics for similar financial assets. Also, the Group’s credit risk can arise from transactions with financial institutions related to its cash and cash equivalents, financial instruments and derivatives. To minimize such risk, the Group has a policy to deal only with financial institutions with high credit ratings.
The Group’s maximum exposure to credit risk is equal to each financial asset’s carrying amount as of March 31, 2026.
47
Table of Contents
SK TELECOM CO., LTD. and its Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements
March 31, 2026 and 2025
| 29. | Financial Risk Management, Continued |
| (1) | Financial risk management, Continued |
| 3) | Liquidity risk |
Liquidity risk is the risk that the Group encounters difficulty in meeting the obligations of the financial liabilities. The Group’s approach to managing liquidity is to ensure that it maintains sufficient cash and cash equivalents and secures adequate liquidity through various committed credit lines at all times. The Group maintains sufficient liquidity based on its cash-generating capacity from operating activities and available credit facilities.
The Group’s accounts payable – other and
others includes amounts settled through supplier finance arrangements. The Group pays the amounts within the normal operating cycle, and no collateral is provided in connection with the agreements. As the payment terms have not been substantially
modified, the related balances are 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 amount to
W
As of March 31, 2026, periods in which cash flows from cash flow hedge derivatives are expected to occur are as follows:
| (In millions of won) | Carrying amount |
Contractual cash flows |
Less than 1 year | 1 -5 years | ||||||||||||
| Assets |
294,791 | 25,273 | 269,518 | |||||||||||||
| Liabilities |
(225 | ) | (225 | ) | (225 | ) | — | |||||||||
48
Table of Contents
SK TELECOM CO., LTD. and its Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements
March 31, 2026 and 2025
| 29. | Financial Risk Management, Continued |
| (2) | Capital management |
The Group manages its capital to ensure its ability to continue as a going concern while seeking to maximize shareholder returns through the optimization of its debt and equity structure. The overall capital management strategy of the Group is the same as that of the Group as of and for the year ended December 31, 2025.
The Group monitors its debt-to-equity ratio as a key indicator of capital management. This ratio is calculated as total liabilities divided by total equity, based on the amounts presented in the consolidated financial statements.
Debt-to-equity ratio as of March 31, 2026 and December 31, 2025 are as follows:
| (In millions of won) | ||||||||
| March 31, 2026 | December 31, 2025 | |||||||
| Total liabilities |
17,152,491 | |||||||
| Total equity |
13,347,617 | 12,955,292 | ||||||
|
|
|
|
|
|||||
| Debt-to-equity ratios |
124.92 | % | 132.40 | % | ||||
|
|
|
|
|
|||||
| (3) | Fair value |
| 1) | Fair value and carrying amount of financial assets and liabilities, including fair value hierarchy as of March 31, 2026 are as follows: |
| (In millions of won) | March 31, 2026 | |||||||||||||||||||
| Carrying amount |
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
| Financial assets that are measured at fair value: |
||||||||||||||||||||
| FVTPL |
— | 1,262,738 | 266,879 | 1,529,617 | ||||||||||||||||
| Derivative hedging instruments |
284,813 | — | 284,813 | — | 284,813 | |||||||||||||||
| FVOCI |
3,129,548 | 1,026,609 | — | 2,102,939 | 3,129,548 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| 1,026,609 | 1,547,551 | 2,369,818 | 4,943,978 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Financial liabilities that are measured at fair value: |
||||||||||||||||||||
| FVTPL |
— | 26 | 6,040 | 6,066 | ||||||||||||||||
| Derivative hedging instruments |
225 | — | 225 | — | 225 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| — | 251 | 6,040 | 6,291 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Financial liabilities that are not measured at fair value: |
||||||||||||||||||||
| Borrowings |
— | 626,706 | — | 626,706 | ||||||||||||||||
| Debentures |
8,153,453 | — | 7,977,108 | — | 7,977,108 | |||||||||||||||
| Long-term payables – other |
179,989 | — | 178,796 | — | 178,796 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| — | 8,782,610 | — | 8,782,610 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
49
Table of Contents
SK TELECOM CO., LTD. and its Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements
March 31, 2026 and 2025
| 29. | Financial Risk Management, Continued |
| (3) | Fair value, Continued |
| 2) | Fair value and carrying amount of financial assets and liabilities, including fair value hierarchy as of December 31, 2025 are as follows: |
| (In millions of won) | December 31, 2025 | |||||||||||||||||||
| Carrying amount |
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
| Financial assets that are measured at fair value: |
||||||||||||||||||||
| FVTPL |
— | 896,085 | 271,468 | 1,167,553 | ||||||||||||||||
| Derivative hedging instruments |
201,262 | — | 201,262 | — | 201,262 | |||||||||||||||
| FVOCI |
3,025,988 | 966,666 | — | 2,059,322 | 3,025,988 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| 966,666 | 1,097,347 | 2,330,790 | 4,394,803 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Financial liabilities that are measured at fair value: |
||||||||||||||||||||
| FVTPL |
— | 26 | 5,756 | 5,782 | ||||||||||||||||
| Derivative hedging instruments |
621 | — | 621 | — | 621 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| — | 647 | 5,756 | 6,403 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Financial liabilities that are not measured at fair value: |
||||||||||||||||||||
| Borrowings |
— | 634,241 | — | 634,241 | ||||||||||||||||
| Debentures |
8,213,904 | — | 8,183,670 | — | 8,183,670 | |||||||||||||||
| Long-term payables – other |
547,961 | — | 553,807 | — | 553,807 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| — | 9,371,718 | — | 9,371,718 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
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, 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 March 31, 2026 are as follows:
| Interest rate | ||
| Derivative instruments |
2.06% ~ 8.10% | |
| Borrowings and debentures |
3.49% ~ 4.00% | |
| Long-term payables – other |
3.43% ~ 3.56% |
50
Table of Contents
SK TELECOM CO., LTD. and its Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements
March 31, 2026 and 2025
| 29. | Financial Risk Management, Continued |
| (3) | Fair value, Continued |
| 3) | There have been no transfers between Level 1 and Level 2 for the three-month period ended March 31, 2026. The changes of financial assets and liabilities classified as Level 3 for the three-month period ended March 31, 2026 are as follows: |
| (In millions of won) | Balance as of January 1, 2026 |
Loss | OCI | Acquisition | Disposal | Transfer(*) | Balance as of March 31, 2026 |
|||||||||||||||||||||
| Financial assets: |
||||||||||||||||||||||||||||
| FVTPL |
(111 | ) | 4,956 | 1,314 | (10,748 | ) | — | 266,879 | ||||||||||||||||||||
| FVOCI |
2,059,322 | — | 50,409 | 1,465 | (8,640 | ) | 383 | 2,102,939 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| (111 | ) | 55,365 | 2,779 | (19,388 | ) | 383 | 2,369,818 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Financial liabilities: |
||||||||||||||||||||||||||||
| FVTPL |
(284 | ) | — | — | — | — | (6,040 | ) | ||||||||||||||||||||
| (*) | Transfer includes amounts transferred between levels in the fair value hierarchy due to changes in the availability of observable market inputs for the financial instruments. |
| (4) | Enforceable master netting agreement or similar agreement |
Carrying amounts of financial instruments recognized to which offset agreements are applicable as of March 31, 2026 and December 31, 2025 are as follows:
| (In millions of won) | March 31, 2026 | |||||||||||
| Gross financial instruments recognized |
Amount offset |
Net financial instruments presented on the condensed consolidated interim statement of financial position |
||||||||||
| Financial assets: |
||||||||||||
| Accounts receivable – trade and others |
(229,752 | ) | 13,780 | |||||||||
| Financial liabilities: |
||||||||||||
| Accounts payable – other and others |
(229,752 | ) | 5,488 | |||||||||
| (In millions of won) | December 31, 2025 | |||||||||||
| Gross financial instruments recognized |
Amount offset |
Net financial instruments presented on the consolidated statement of financial position |
||||||||||
| Financial assets: |
||||||||||||
| Accounts receivable – trade and others |
(209,487 | ) | 12,990 | |||||||||
| Financial liabilities: |
||||||||||||
| Accounts payable – other and others |
(209,487 | ) | 4,394 | |||||||||
51
Table of Contents
SK TELECOM CO., LTD. and its Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements
March 31, 2026 and 2025
| 30. | 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 41 others | |
| Others | The ultimate controlling entity’s subsidiaries and associates and others |
| (*) | Associates include investments that are measured in accordance with KIFRS 1109 in which the Group has significant influence but is determined to have no substantive access to returns associated with its ownership interest. |
As of March 31, 2026, the Group is part of SK Group, a conglomerate as defined in the Monopoly Regulation and Fair Trade Act of the Republic of Korea. All other entities within SK Group are therefore considered related parties of the Group.
| (2) | Compensation for the key management |
The Parent Company considers registered directors who have substantial roles and responsibilities in the planning, operations, and oversight of relevant controls of the business to be key management personnel. The compensation given to such key management for the three-month periods ended March 31, 2026 and 2025 are as follows:
| (In millions of won) | For the three-month period ended | |||||||
| March 31, 2026 | March 31, 2025 | |||||||
| Salaries |
4,046 | |||||||
| Defined benefit plan expenses |
138 | 363 | ||||||
| Share option |
2,325 | 37 | ||||||
|
|
|
|
|
|||||
| 4,446 | ||||||||
|
|
|
|
|
|||||
Compensation for the key management includes salaries, non-monetary benefits, defined benefit relating to the pension plan, and share-based compensation expenses.
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Table of Contents
SK TELECOM CO., LTD. and its Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements
March 31, 2026 and 2025
| 30. | Transactions with Related Parties, Continued |
| (3) | Transactions with the related parties for the three-month periods ended March 31, 2026 and 2025 are as follows: |
| (In millions of won) | For the three-month period ended March 31, 2026 | |||||||||||||
| Scope |
Company |
Operating revenue and others |
Operating expenses and others(*1) |
Acquisition of property and equipment and others |
||||||||||
| Ultimate controlling entity |
SK Inc. | 103,033 | 3,955 | |||||||||||
|
|
|
|
|
|
|
|||||||||
| Associates |
SK m&service Co., Ltd. | 767 | 10,321 | 45 | ||||||||||
| Penguin Solutions, Inc.(*2) | 4,129 | — | — | |||||||||||
| Others | 1,236 | 434 | — | |||||||||||
|
|
|
|
|
|
|
|||||||||
| 6,132 | 10,755 | 45 | ||||||||||||
|
|
|
|
|
|
|
|||||||||
| Others |
SK Innovation Co., Ltd. | 2,244 | 4,167 | — | ||||||||||
| SK Energy Co., Ltd. | 316 | 50 | — | |||||||||||
| SK Geo Centric Co., Ltd. | 111 | 14 | — | |||||||||||
| SK Networks Co., Ltd.(*3) | 493 | 301,886 | — | |||||||||||
| SK Networks Service Co., Ltd. | 188 | 14,685 | — | |||||||||||
| SK Ecoplant Co., Ltd. | 524 | — | 18,400 | |||||||||||
| SK hynix Inc. | 17,967 | 170 | — | |||||||||||
| SK Shieldus Co., Ltd. | 12,630 | 40,096 | 512 | |||||||||||
| Content Wavve Corp. | 63 | 11,592 | — | |||||||||||
| Eleven Street Co., Ltd. | 22,665 | 9,012 | — | |||||||||||
| SK Planet Co., Ltd. | 1,634 | 16,725 | 95 | |||||||||||
| SK intellix Co.,Ltd. (Formerly, SK Magic Co., Ltd.) |
245 | 283 | — | |||||||||||
| Tmap Mobility Co., Ltd. | 1,626 | 1,044 | — | |||||||||||
| One Store Co., Ltd. | 2,847 | 6 | — | |||||||||||
| Dreamus Company | 457 | 11,236 | — | |||||||||||
| UNA Engineering Inc. | 24 | 12,796 | 2,502 | |||||||||||
| Happy Narae Co., Ltd. | 125 | 2,154 | 176 | |||||||||||
| SK REIT Co., Ltd. | 1 | 3,368 | — | |||||||||||
| Others | 7,945 | 4,243 | — | |||||||||||
|
|
|
|
|
|
|
|||||||||
| 72,105 | 433,527 | 21,685 | ||||||||||||
|
|
|
|
|
|
|
|||||||||
| 547,315 | 25,685 | |||||||||||||
|
|
|
|
|
|
|
|||||||||
| (*1) | Operating expenses and others include lease payments by the Group. |
| (*2) | Operating revenue and others include |
| (*3) | Operating expenses and others include costs for handset purchases amounting to
|
53
Table of Contents
SK TELECOM CO., LTD. and its Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements
March 31, 2026 and 2025
| 30. | Transactions with Related Parties, Continued |
| (3) | Transactions with the related parties for the three-month periods ended March 31, 2026 and 2025 are as follows, Continued: |
| (In millions of won) | For the three-month period ended March 31, 2025 | |||||||||||||
| Scope |
Company |
Operating revenue and others |
Operating expenses and others(*1) |
Acquisition of property and equipment and others |
||||||||||
| Ultimate controlling entity |
SK Inc.(*2) | 172,354 | 4,312 | |||||||||||
|
|
|
|
|
|
|
|||||||||
| Associates |
F&U Credit information Co., Ltd. | 761 | 12,113 | — | ||||||||||
| SK m&service Co., Ltd. | 364 | 2,793 | 233 | |||||||||||
| Others | 405 | 1,925 | — | |||||||||||
|
|
|
|
|
|
|
|||||||||
| 1,530 | 16,831 | 233 | ||||||||||||
|
|
|
|
|
|
|
|||||||||
| Others |
SK Innovation Co., Ltd. | 1,011 | 4,281 | 2,050 | ||||||||||
| SK Energy Co., Ltd. | 320 | 46 | — | |||||||||||
| SK Geo Centric Co., Ltd. | 148 | 13 | — | |||||||||||
| SK Networks Co., Ltd.(*3) | 1,196 | 248,192 | — | |||||||||||
| SK Networks Service Co., Ltd. | 1,271 | 15,309 | — | |||||||||||
| SK Ecoplant Co., Ltd. | 583 | — | — | |||||||||||
| SK hynix Inc. | 12,996 | 231 | — | |||||||||||
| SK Shieldus Co., Ltd. | 13,589 | 39,700 | 749 | |||||||||||
| Content Wavve Corp. | 4,399 | 15,823 | — | |||||||||||
| Eleven Street Co., Ltd. | 3,450 | 9,241 | — | |||||||||||
| SK Planet Co., Ltd. | 2,644 | 18,383 | 80 | |||||||||||
| SK intellix Co.,Ltd. (Formerly, SK Magic Co., Ltd.) |
326 | 313 | — | |||||||||||
| Tmap Mobility Co., Ltd. | 4,412 | 1,159 | — | |||||||||||
| One Store Co., Ltd. | 3,306 | 10 | — | |||||||||||
| Dreamus Company | 1,502 | 13,826 | — | |||||||||||
| UNA Engineering Inc. | 22 | 12,420 | 1,855 | |||||||||||
| Happy Narae Co., Ltd. | 241 | 2,906 | 299 | |||||||||||
| Others | 9,431 | 16,501 | — | |||||||||||
|
|
|
|
|
|
|
|||||||||
| 60,847 | 398,354 | 5,033 | ||||||||||||
|
|
|
|
|
|
|
|||||||||
| 587,539 | 9,578 | |||||||||||||
|
|
|
|
|
|
|
|||||||||
| (*1) | Operating expenses and others include lease payments by the Group. |
| (*2) | Operating expenses and others include |
| (*3) | Operating expenses and others include costs for handset purchases amounting to
|
54
Table of Contents
SK TELECOM CO., LTD. and its Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements
March 31, 2026 and 2025
| 30. | Transactions with Related Parties, Continued |
| (4) | Account balances with the related parties as of March 31, 2026 and December 31, 2025 are as follows: |
| (In millions of won) | March 31, 2026 | |||||||||
| Receivables | Payables | |||||||||
| Scope |
Company |
Accounts receivable – trade, etc. |
Accounts payable – other, etc. |
|||||||
| Ultimate controlling entity |
SK Inc. | 70,319 | ||||||||
| Associates |
SK m&service Co., Ltd. | 2,481 | 36,672 | |||||||
| Others | 1,065 | 1,808 | ||||||||
|
|
|
|
|
|||||||
| 3,546 | 38,480 | |||||||||
|
|
|
|
|
|||||||
| Others |
SK Innovation Co., Ltd. | 3,645 | 19,467 | |||||||
| SK Networks Co., Ltd. | 203 | 213,961 | ||||||||
| Mintit Co., Ltd. | 2,565 | — | ||||||||
| SK hynix Inc. | 13,246 | 81 | ||||||||
| Happy Narae Co., Ltd. | — | 845 | ||||||||
| SK Shieldus Co., Ltd. | 11,359 | 18,333 | ||||||||
| Content Wavve Corp. | — | 11,583 | ||||||||
| Incross Co., Ltd. | 1,276 | 4,298 | ||||||||
| Eleven Street Co., Ltd. | 31,643 | 5,333 | ||||||||
| SK Planet Co., Ltd. | 197 | 5,201 | ||||||||
| UNA Engineering Inc. | — | 3,483 | ||||||||
| SK REIT Co., Ltd. | 7,890 | 57,389 | ||||||||
| Others | 6,818 | 22,019 | ||||||||
|
|
|
|
|
|||||||
| 78,842 | 361,993 | |||||||||
|
|
|
|
|
|||||||
| 470,792 | ||||||||||
|
|
|
|
|
|||||||
55
Table of Contents
SK TELECOM CO., LTD. and its Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements
March 31, 2026 and 2025
| 30. | Transactions with Related Parties, Continued |
| (4) | Account balances with the related parties as of March 31, 2026 and December 31, 2025 are as follows, Continued: |
| (In millions of won) | December 31, 2025 | |||||||||
| Receivables | Payables | |||||||||
| Scope |
Company |
Accounts receivable – trade, etc. |
Accounts payable – other, etc. |
|||||||
| Ultimate controlling entity |
SK Inc. | 170,652 | ||||||||
| Associates |
SK m&service Co., Ltd. | 700 | 32,081 | |||||||
| Others | 1,009 | 1,790 | ||||||||
|
|
|
|
|
|||||||
| 1,709 | 33,871 | |||||||||
|
|
|
|
|
|||||||
| Others |
SK Innovation Co., Ltd. | 4,996 | 21,976 | |||||||
| SK Networks Co., Ltd. | 258 | 123,865 | ||||||||
| Mintit Co., Ltd. | 2,553 | 2 | ||||||||
| SK hynix Inc. | 13,232 | 291 | ||||||||
| Happy Narae Co., Ltd. | 37 | 2,851 | ||||||||
| SK Shieldus Co., Ltd. | 15,393 | 18,754 | ||||||||
| Content Wavve Corp. | — | 6 | ||||||||
| Incross Co., Ltd. | 1,820 | 25,570 | ||||||||
| Eleven Street Co., Ltd. | 17,455 | 2,189 | ||||||||
| SK Planet Co., Ltd. | 259 | 5,933 | ||||||||
| UNA Engineering Inc. | — | 9,271 | ||||||||
| SK REIT Co., Ltd. | 7,890 | 61,835 | ||||||||
| Others | 11,895 | 24,816 | ||||||||
|
|
|
|
|
|||||||
| 75,788 | 297,359 | |||||||||
|
|
|
|
|
|||||||
| 501,882 | ||||||||||
|
|
|
|
|
|||||||
| (5) | The Group has granted SK REIT Co., Ltd. the right of first offer regarding the disposal of specified real estates owned by the Group, and the negotiation period is three years from June 30, 2024, the date of agreement. 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) | The details of additional investments and disposal of associates for the three-month period ended March 31, 2026 are as presented in note 10. |
56
Table of Contents
SK TELECOM CO., LTD. and its Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements
March 31, 2026 and 2025
| 31. | 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
| (2) | Legal claims and litigations |
As of March 31, 2026, the Group is involved in various legal claims and litigations. The provision recognized in relation to these claims and litigations is immaterial. For legal claims and litigations for which no provision has been recognized, management does not believe the Group has a present obligation, nor is any such matter expected to have a material effect on the Group’s financial position or operating results in the event an outflow of resources becomes necessary.
| (3) | Accounts receivable from sale of handsets |
Retail stores and authorized dealers of the Parent Company sell handsets to the Parent Company’s subscribers on an installment basis. The Parent Company has entered into comprehensive agreements with these retail stores and authorized dealers to purchase the related accounts receivable from handset sales 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 WW
| (4) | Obligation relating to spin-off |
The Parent Company completed 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. In accordance with Article 530-9 (1) of the Korean Commercial Act, the Parent Company and SK Square Co., Ltd., the spin-off company, are jointly and severally liable for liabilities incurred by the Parent Company prior to the spin-off.
(5) According to the covenants associated with the Group’s bond issuances and borrowings, the Group is required to maintain certain financial ratios, including the debt ratio, within specified thresholds. The funds obtained must be used for specified purposes, and regular reporting to lenders is required. Additionally, the contracts include clauses that restrict the provision of additional collateral over the Group’s assets and limit the disposal of certain assets.
(6) The Parent Company entered into a contract with SK Inc. for the use of Amazon Web Services (“AWS”). In accordance with the contract, the Parent Company is entitled to receive AWS services for a ten-year period beginning in July 2025, with a total contract value of USD 800,000,000.
57
Table of Contents
SK TELECOM CO., LTD. and its Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements
March 31, 2026 and 2025
| 32. | Statements of Cash Flows |
| (1) | Adjustments for income and expenses from operating activities for the three-month periods ended March 31, 2026 and 2025 are as follows: |
| (In millions of won) | For the three-month period ended | |||||||
| March 31, 2026 | March 31, 2025 | |||||||
| Interest income |
(18,572 | ) | ||||||
| Dividends |
(18,435 | ) | (19,812 | ) | ||||
| Gain on foreign currency translations |
(3,818 | ) | (2,464 | ) | ||||
| Gain (loss) relating to investments in subsidiaries, associates and joint ventures, net |
15,131 | (132 | ) | |||||
| Gain on disposal of property and equipment and intangible assets |
(7,948 | ) | (7,703 | ) | ||||
| Gain relating to financial instruments at FVTPL |
(823 | ) | (144 | ) | ||||
| Interest expenses |
89,682 | 97,629 | ||||||
| Loss on foreign currency translations |
1,655 | 606 | ||||||
| Loss on sale of accounts receivable – other |
3,777 | 4,943 | ||||||
| Income tax expense |
149,152 | 146,305 | ||||||
| Expense related to defined benefit plan |
25,851 | 30,453 | ||||||
| Share option expenses (reversal) |
5,412 | (248 | ) | |||||
| Depreciation and amortization |
878,630 | 896,962 | ||||||
| Bad debt for accounts receivable – trade |
10,214 | 7,502 | ||||||
| Impairment loss on property and equipment and intangible assets |
— | 359 | ||||||
| Loss on disposal of property and equipment and intangible assets |
1,364 | 2,159 | ||||||
| Impairment loss on assets held for sale |
2,094 | — | ||||||
| Bad debt for accounts receivable – other |
1,208 | 858 | ||||||
| Loss relating to financial instruments at FVTPL |
5,271 | 153 | ||||||
| Loss on repayment of debentures |
— | 478 | ||||||
| Other income (expenses) |
(4,335 | ) | 20,101 | |||||
|
|
|
|
|
|||||
| 1,159,433 | ||||||||
|
|
|
|
|
|||||
58
Table of Contents
SK TELECOM CO., LTD. and its Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements
March 31, 2026 and 2025
| 32. | Statements of Cash Flows, Continued |
| (2) | Changes in assets and liabilities from operating activities for the three-month periods ended March 31, 2026 and 2025 are as follows: |
| (In millions of won) | For the three-month period ended | |||||||
| March 31, 2026 | March 31, 2025 | |||||||
| Accounts receivable – trade |
4,681 | |||||||
| Accounts receivable – other |
(105,693 | ) | (142,339 | ) | ||||
| Advanced payments |
6,660 | (2,885 | ) | |||||
| Prepaid expenses |
(149,906 | ) | (49,067 | ) | ||||
| Inventories |
(34,439 | ) | 4,257 | |||||
| Long-term accounts receivable – other |
(459 | ) | 2,280 | |||||
| Contract assets |
(8,525 | ) | 3,760 | |||||
| Guarantee deposits |
6,846 | 9,170 | ||||||
| Accounts payable – trade |
93,911 | (14,661 | ) | |||||
| Accounts payable – other |
(152,264 | ) | (30,177 | ) | ||||
| Withholdings |
122,849 | 197,649 | ||||||
| Contract liabilities |
69,901 | 34,175 | ||||||
| Deposits received |
293 | 6,883 | ||||||
| Accrued expenses |
(130,398 | ) | (205,632 | ) | ||||
| Provisions |
(4,077 | ) | (600 | ) | ||||
| Plan assets |
115,290 | 56,616 | ||||||
| Retirement benefits payment |
(73,653 | ) | (49,814 | ) | ||||
| Others |
(2,488 | ) | (3,220 | ) | ||||
|
|
|
|
|
|||||
| (178,924 | ) | |||||||
|
|
|
|
|
|||||
| (3) | Material non-cash transactions for the three-month periods ended March 31, 2026 and 2025 are as follows: |
| (In millions of won) | For the three-month period ended | |||||||
| March 31, 2026 | March 31, 2025 | |||||||
| Decrease in accounts payable – other relating to the acquisition of property and equipment and intangible assets |
(437,706 | ) | ||||||
| Increase of right-of-use assets |
89,014 | 58,512 | ||||||
| Transfer from investment property to assets held for sale |
12,713 | — | ||||||
59
Table of Contents
SK TELECOM CO., LTD. and its Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements
March 31, 2026 and 2025
| 33. | Emissions Liabilities |
| (1) | The quantities of emissions rights allocated free of charge for each implementation year as of March 31, 2026 are as follows: |
| (In tCO2-eQ) | ||||||||||||||||||||||||
| Quantities allocated in 2026 |
Quantities allocated in 2027 |
Quantities allocated in 2028 |
Quantities allocated in 2029 |
Quantities allocated in 2030 |
Total | |||||||||||||||||||
| Emissions rights allocated free of charge(*) |
1,399,530 | 1,413,943 | 1,491,719 | 1,552,252 | 1,610,194 | 7,467,638 | ||||||||||||||||||
| (*) | Finalized changes in allocated quantities, including additional allocations, cancellations and other adjustments, have been reflected. |
| (2) | Changes in the quantities of emissions rights held by the Group are as follows: |
| (In tCO2-eQ) | ||||||||||||||||
| Quantities allocated in 2024 |
Quantities allocated in 2025 |
Quantities allocated in the three-month period ended March 31, 2026(*) |
Total | |||||||||||||
| Beginning |
414,356 | 517,280 | — | 931,636 | ||||||||||||
| Allocation at no cost |
1,766,850 | 1,598,389 | 1,399,530 | 4,764,769 | ||||||||||||
| Purchase (sale) |
(41,446 | ) | (241,848 | ) | 184,406 | (98,888 | ) | |||||||||
| Surrender or shall be surrendered |
(1,622,480 | ) | (1,873,821 | ) | (1,941,339 | ) | (5,437,640 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Ending |
517,280 | — | (357,403 | ) | 159,877 | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| (*) | Changes for the three-month period ended March 31, 2026 are estimated quantities, and additionally allocated and surrendered or shall be surrendered quantities will be fixed in the future. |
| (3) | As of March 31, 2026, the estimated annual greenhouse gas emissions quantities of the Group are 1,941,339 tCO2-eQ. |
60
Table of Contents
SK TELECOM CO., LTD. and its Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements
March 31, 2026 and 2025
| 34. | Assets and Liabilities Held for Sale |
| Assets | and liabilities held for sale as of March 31, 2026 and December 31, 2025 are as follows: |
| (In millions of won) | ||||||||||
| March 31, 2026 |
December 31, 2025 |
|||||||||
| Assets: |
||||||||||
| Disposal groups(*) |
Cash and cash equivalents | 27,569 | ||||||||
| Accounts receivable – trade and other, net | 24,333 | 23,591 | ||||||||
| Advanced payments | 98 | 80 | ||||||||
| Prepaid expenses | 2,807 | 1,877 | ||||||||
| Inventories, net | 6,824 | 6,278 | ||||||||
| Property and equipment, net | 9,144 | 10,866 | ||||||||
| Intangible assets, net | 20,575 | 17,795 | ||||||||
| Right of use, net | 2,679 | 2,646 | ||||||||
| Financial instruments | 40,003 | 45,003 | ||||||||
| Deferred tax assets | 4,918 | 4,916 | ||||||||
| Defined benefit assets | 1,473 | 1,981 | ||||||||
| Investment in an associate |
Daekyo Wipoongdangdang Contents Korea Fund | 746 | 746 | |||||||
| Property and equipment and investment properties |
Land, buildings and others | 13,229 | 141 | |||||||
|
|
|
|
|
|||||||
| 143,489 | ||||||||||
| Liabilities: |
||||||||||
| Disposal groups(*) |
Accounts payable – other | 34,723 | 38,637 | |||||||
| Withholdings | 13,838 | 16,863 | ||||||||
| Lease liabilities | 2,588 | 2,910 | ||||||||
| Contract liabilities | 79 | 43 | ||||||||
| Provisions | 275 | 275 | ||||||||
| Other current liabilities | 3,283 | 3,885 | ||||||||
| Current tax liabilities | 5,511 | 4,495 | ||||||||
|
|
|
|
|
|||||||
| 67,108 | ||||||||||
|
|
|
|
|
|||||||
| (*) | For the year ended December 31, 2025, the Group decided to dispose of the shares of SK stoa Co., Ltd. and Media S Co., Ltd., the consolidated subsidiaries. Accordingly, the assets and liabilities of SK stoa Co., Ltd. and Media S Co., Ltd. were reclassified as assets and liabilities held for sale. |
61
Table of Contents
SK TELECOM CO., LTD. and its Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements
March 31, 2026 and 2025
| 35. | Subsequent Events |
The Board of Directors of the Parent Company resolved to pay interim dividends at the Board of Directors’ meeting held on April 27, 2026, and the details are as follows:
| Classification |
Description | |
| Interim dividend amount |
||
| Dividend rate |
0.84% | |
| Record date |
May 31, 2026 | |
| Date of distribution |
Pursuant to Article 165-12 (3) of Capital Market and Financial Investment Business Act, the Parent Company shall distribute dividends no later than June 18, 2026 |
62
Table of Contents
SK TELECOM CO., LTD.
Condensed Separate Interim Financial Statements
For the three-month periods ended March 31, 2026 and 2025
(With Independent Auditors’ Review Report)
Table of Contents
Table of Contents
Independent Auditors’ Review Report
Based on a report originally issued in Korean
To the Board of Directors and Shareholders
SK Telecom Co., Ltd.
Reviewed financial statements
We have reviewed the accompanying condensed separate interim financial statements of SK Telecom Co., Ltd. (the “Company”), which comprise the condensed separate interim statement of financial position as of March 31, 2026, the condensed separate interim statements of income, comprehensive income, changes in equity and cash flows for the three-month periods ended March 31, 2026 and 2025, and notes, including a summary of material accounting policies and other explanatory information.
Management’s responsibility
Management is responsible for the preparation and fair presentation of these condensed separate interim financial statements in accordance with Korean International Financial Reporting Standards (“K-IFRS”) No.1034, Interim Financial Reporting, and for such internal controls as management determines is necessary to enable the preparation of condensed separate interim financial statements that are free from material misstatement, whether due to fraud or error.
Auditors’ review responsibility
Our responsibility is to issue a report on these condensed separate interim financial statements based on our reviews.
We conducted our reviews in accordance with the Review Standards for Quarterly and Semiannual Financial Statements established by the Securities and Futures Commission of the Republic of Korea. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Korean Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our reviews, nothing has come to our attention that causes us to believe that the accompanying condensed separate interim financial statements referred to above do not present fairly, in all material respects, in accordance with K-IFRS No.1034, Interim Financial Reporting.
Table of Contents
Other matters
The separate statement of financial position of the Company as of December 31, 2025, and the related separate statements of income, comprehensive income, changes in equity and cash flows for the year then ended, which are not accompanying this report, were audited by us in accordance with Korean Standards on Auditing and our report thereon, dated March 10, 2026, expressed an unmodified opinion. The accompanying separate statement of financial position of the Company as of December 31, 2025, presented for comparative purposes, is not different from that audited by us from which it was derived in all material respects.
The procedures and practices utilized in the Republic of Korea to review such condensed separate interim financial statements may differ from those generally accepted and applied in other countries.
KPMG Samjong Accounting Corp.
Seoul, Korea
May 12, 2026
| This report is effective as of May 12, 2026, the review report date. Certain subsequent events or circumstances, which may occur between the review report date and the time of reading this report, could have a material impact on the accompanying condensed separate interim financial statements and notes thereto. Accordingly, the readers of the review report should understand that the above review report has not been updated to reflect the impact of such subsequent events or circumstances, if any. |
Table of Contents
SK TELECOM CO., LTD.
CONDENSED SEPARATE INTERIM FINANCIAL STATEMENTS
AS OF MARCH 31, 2026 AND DECEMBER 31, 2025 AND
FOR THE THREE-MONTH PERIODS ENDED MARCH 31, 2026 AND 2025
The accompanying condensed separate interim financial statements, including all footnote disclosures, have been prepared by, and are the responsibility of, the Company.
Jung, Jaihun
Chief Executive Officer
SK TELECOM CO., LTD.
Table of Contents
Condensed Separate Interim Statements of Financial Position
As of March 31, 2026 and December 31, 2025
| (In millions of won) | Note | March 31, 2026 |
December 31, 2025 |
|||||||||
| Assets |
||||||||||||
| Current Assets: |
||||||||||||
| Cash and cash equivalents |
27,28 | 771,861 | ||||||||||
| Short-term financial instruments |
27,28 | 89,155 | 89,155 | |||||||||
| Accounts receivable – trade, net |
4,27,28,29 | 1,473,774 | 1,469,426 | |||||||||
| Short-term loans, net |
4,27,28 | 70,246 | 60,122 | |||||||||
| Accounts receivable – other, net |
4,27,28,29,30 | 643,027 | 393,136 | |||||||||
| Contract assets |
6,28 | 5,869 | 5,958 | |||||||||
| Prepaid expenses |
5 | 2,096,275 | 1,997,049 | |||||||||
| Guarantee deposits, net |
4,27,28,29 | 55,226 | 58,513 | |||||||||
| Prepaid income taxes |
25 | — | 8,827 | |||||||||
| Inventories, net |
23,731 | 16,940 | ||||||||||
| Non-current assets held for sale |
33 | 53,310 | 40,081 | |||||||||
| Advanced payments and others |
4,27,28 | 14,205 | 21,489 | |||||||||
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| 5,027,178 | 4,932,557 | |||||||||||
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| Non-Current Assets: |
||||||||||||
| Long-term financial instruments |
27,28 | 370 | 354 | |||||||||
| Long-term investment securities |
7,27,28 | 2,475,763 | 2,396,996 | |||||||||
| Investments in subsidiaries, associates and joint ventures |
8 | 5,888,482 | 5,892,726 | |||||||||
| Property and equipment, net |
9,11,29 | 7,229,934 | 7,680,504 | |||||||||
| Investment property, net |
10 | 34,273 | 47,287 | |||||||||
| Goodwill |
1,306,236 | 1,306,236 | ||||||||||
| Intangible assets, net |
12 | 1,092,400 | 1,230,202 | |||||||||
| Long-term loans, net |
4,27,28 | 314 | 363 | |||||||||
| Long-term accounts receivable – other, net |
4,27,28,30 | 237,317 | 235,980 | |||||||||
| Long-term contract assets |
6,28 | 10,251 | 11,363 | |||||||||
| Long-term prepaid expenses |
5 | 1,098,501 | 1,065,238 | |||||||||
| Guarantee deposits, net |
4,27,28,29 | 89,439 | 92,213 | |||||||||
| Long-term derivative financial assets |
27,28 | 212,469 | 156,256 | |||||||||
| Defined benefit assets |
16 | 37,224 | 100,212 | |||||||||
| Other non-current assets |
249 | 249 | ||||||||||
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|||||||||
| 19,713,222 | 20,216,179 | |||||||||||
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| Total Assets |
25,148,736 | |||||||||||
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|
|||||||||
(Continued)
1
Table of Contents
SK TELECOM CO., LTD.
Condensed Separate Interim Statements of Financial Position, Continued
As of March 31, 2026 and December 31, 2025
| (In millions of won) | Note | March 31, 2026 | December 31, 2025 |
|||||||||
| Liabilities and Shareholders’ Equity |
||||||||||||
| Current Liabilities: |
||||||||||||
| Short-term borrowings |
13,27,28 | 130,000 | ||||||||||
| Accounts payable – other |
27,28,29 | 1,211,261 | 1,527,175 | |||||||||
| Contract liabilities |
6 | 90,083 | 108,613 | |||||||||
| Withholdings |
27,28 | 884,777 | 773,970 | |||||||||
| Accrued expenses |
27,28 | 769,021 | 792,458 | |||||||||
| Income tax payable |
25 | 70,072 | — | |||||||||
| Provisions |
15,32 | 140,907 | 137,750 | |||||||||
| Current portion of long-term debt, net |
13,27,28 | 764,609 | 864,696 | |||||||||
| Lease liabilities |
27,28,29 | 354,285 | 354,906 | |||||||||
| Current portion of long-term payables – other |
14,27,28 | 90,218 | 368,572 | |||||||||
| Derivative financial liabilities |
27,28 | 806 | 581 | |||||||||
| Other current liabilities |
27,28 | 3,935 | 11,521 | |||||||||
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|||||||||
| 4,509,974 | 5,070,242 | |||||||||||
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| Non-Current Liabilities: |
||||||||||||
| Debentures, excluding current portion, net |
13,27,28 | 5,292,679 | 5,416,644 | |||||||||
| Long-term borrowings, excluding current portion, net |
13,27,28 | 300,000 | 300,000 | |||||||||
| Long-term payables – other |
14,27,28 | 89,771 | 179,389 | |||||||||
| Long-term contract liabilities |
6 | 1,754 | 1,699 | |||||||||
| Long-term derivative financial liabilities |
27,28 | — | 621 | |||||||||
| Long-term lease liabilities |
27,28,29 | 721,444 | 782,702 | |||||||||
| Long-term provisions |
15 | 65,088 | 69,517 | |||||||||
| Deferred tax liabilities |
25 | 1,322,775 | 1,277,326 | |||||||||
| Other non-current liabilities |
27,28 | 67,974 | 59,546 | |||||||||
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| 7,861,485 | 8,087,444 | |||||||||||
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| Total Liabilities |
12,371,459 | 13,157,686 | ||||||||||
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|||||||||
| Shareholders’ Equity: |
||||||||||||
| Share capital |
1,17 | 30,493 | 30,493 | |||||||||
| Capital surplus and others |
17,18 | (6,247,105 | ) | (4,547,673 | ) | |||||||
| Retained earnings |
19 | 17,211,460 | 15,199,915 | |||||||||
| Reserves |
20 | 1,374,093 | 1,308,315 | |||||||||
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| Total Shareholders’ Equity |
12,368,941 | 11,991,050 | ||||||||||
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|||||||||
| Total Liabilities and Shareholders’ Equity |
25,148,736 | |||||||||||
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|||||||||
The accompanying notes are an integral part of the condensed separate interim financial statements.
2
Table of Contents
SK TELECOM CO., LTD.
Condensed Separate Interim Statements of Income
For the three-month periods ended March 31, 2026 and 2025
| (In millions of won, except for earnings per share) | Note | 2026 | 2025 | |||||||||
| Operating revenue: |
21,29 | |||||||||||
| Revenue |
3,167,455 | |||||||||||
| Operating expenses: |
29 | |||||||||||
| Labor |
278,155 | 277,989 | ||||||||||
| Commission |
5 | 1,182,598 | 1,141,675 | |||||||||
| Depreciation and amortization |
616,524 | 630,591 | ||||||||||
| Network interconnection |
103,244 | 108,104 | ||||||||||
| Leased lines |
47,972 | 48,469 | ||||||||||
| Advertising |
19,475 | 20,553 | ||||||||||
| Rent |
31,698 | 32,309 | ||||||||||
| Cost of goods sold |
141,280 | 145,290 | ||||||||||
| Others |
22 | 275,315 | 280,109 | |||||||||
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| 2,696,261 | 2,685,089 | |||||||||||
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| Operating profit |
409,528 | 482,366 | ||||||||||
| Finance income |
24 | 95,670 | 200,370 | |||||||||
| Finance costs |
24 | (79,186 | ) | (84,649 | ) | |||||||
| Other non-operating income |
23 | 8,940 | 6,880 | |||||||||
| Other non-operating expenses |
23 | (4,486 | ) | (5,312 | ) | |||||||
| Gain relating to investments in subsidiaries, associates and joint ventures, net |
8 | 3,476 | 1,359 | |||||||||
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|||||||||
| Profit before income tax |
433,942 | 601,014 | ||||||||||
| Income tax expense |
25 | 101,250 | 126,422 | |||||||||
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| Profit for the period |
474,592 | |||||||||||
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| Earnings per share: |
26 | |||||||||||
| Basic earnings per share (in won) |
2,206 | |||||||||||
| Diluted earnings per share (in won) |
1,537 | 2,200 | ||||||||||
The accompanying notes are an integral part of the condensed separate interim financial statements.
3
Table of Contents
SK TELECOM CO., LTD.
Condensed Separate Interim Statements of Comprehensive Income
For the three-month periods ended March 31, 2026 and 2025
| (In millions of won) | Note | 2026 | 2025 | |||||||||
| Profit for the period |
474,592 | |||||||||||
| Other comprehensive income (loss): |
||||||||||||
| Items that will not be reclassified subsequently to profit or loss, net of taxes: |
||||||||||||
| Remeasurement of defined benefit plans |
(22,222 | ) | (18,783 | ) | ||||||||
| Valuation gain (loss) on financial assets at fair value through other comprehensive income |
20 | 68,985 | (10,157 | ) | ||||||||
| Items that are or may be reclassified subsequently to profit or loss, net of taxes: |
||||||||||||
| Net change in unrealized fair value of derivatives |
20 | 2,818 | (890 | ) | ||||||||
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| Other comprehensive income (loss) for the period, net of taxes |
49,581 | (29,830 | ) | |||||||||
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| Total comprehensive income |
444,762 | |||||||||||
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The accompanying notes are an integral part of the condensed separate interim financial statements.
4
Table of Contents
SK TELECOM CO., LTD.
Condensed Separate Interim Statements of Changes in Equity
For the three-month periods ended March 31, 2026 and 2025
| (In millions of won) | Capital surplus and others | |||||||||||||||||||||||||||||||||||||||||||
| Note | Share capital |
Paid-in surplus |
Treasury shares |
Hybrid bonds |
Share option |
Other | Sub-total | Retained earnings |
Reserves | Total equity | ||||||||||||||||||||||||||||||||||
| Balance as of January 1, 2025 |
1,771,000 | (92,962 | ) | 398,509 | 14,498 | (6,642,865 | ) | (4,551,820 | ) | 15,273,451 | 208,730 | 10,960,854 | ||||||||||||||||||||||||||||||||
| Total comprehensive income (loss): |
||||||||||||||||||||||||||||||||||||||||||||
| Profit for the period |
— | — | — | — | — | — | — | 474,592 | — | 474,592 | ||||||||||||||||||||||||||||||||||
| Other comprehensive loss |
16,20 | — | — | — | — | — | — | — | (21,273 | ) | (8,557 | ) | (29,830 | ) | ||||||||||||||||||||||||||||||
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| — | — | — | — | — | — | — | 453,319 | (8,557 | ) | 444,762 | ||||||||||||||||||||||||||||||||||
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| Transactions with owners: |
||||||||||||||||||||||||||||||||||||||||||||
| Annual dividends |
— | — | — | — | — | — | — | (223,531 | ) | — | (223,531 | ) | ||||||||||||||||||||||||||||||||
| Share option |
18 | — | — | — | — | 13 | (120 | ) | (107 | ) | — | — | (107 | ) | ||||||||||||||||||||||||||||||
| Interest on hybrid bonds |
— | — | — | — | — | — | — | (4,950 | ) | — | (4,950 | ) | ||||||||||||||||||||||||||||||||
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| — | — | — | — | 13 | (120 | ) | (107 | ) | (228,481 | ) | — | (228,588 | ) | |||||||||||||||||||||||||||||||
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| Balance as of March 31, 2025 |
1,771,000 | (92,962 | ) | 398,509 | 14,511 | (6,642,985 | ) | (4,551,927 | ) | 15,498,289 | 200,173 | 11,177,028 | ||||||||||||||||||||||||||||||||
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| Balance as of January 1, 2026 |
1,771,000 | (88,533 | ) | 398,509 | 14,511 | (6,643,160 | ) | (4,547,673 | ) | 15,199,915 | 1,308,315 | 11,991,050 | ||||||||||||||||||||||||||||||||
| Total comprehensive income: |
||||||||||||||||||||||||||||||||||||||||||||
| Profit for the period |
— | — | — | — | — | — | — | 332,692 | — | 332,692 | ||||||||||||||||||||||||||||||||||
| Other comprehensive income (loss) |
16,20 | — | — | — | — | — | — | — | (16,197 | ) | 65,778 | 49,581 | ||||||||||||||||||||||||||||||||
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| — | — | — | — | — | — | — | 316,495 | 65,778 | 382,273 | |||||||||||||||||||||||||||||||||||
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| Transactions with owners: |
||||||||||||||||||||||||||||||||||||||||||||
| Transfer from paid-in surplus to retained earnings |
— | (1,700,000 | ) | — | — | — | — | (1,700,000 | ) | 1,700,000 | — | — | ||||||||||||||||||||||||||||||||
| Share option |
18 | — | — | — | — | (308 | ) | (315 | ) | (623 | ) | — | — | (623 | ) | |||||||||||||||||||||||||||||
| Interest on hybrid bonds |
— | — | — | — | — | — | — | (4,950 | ) | — | (4,950 | ) | ||||||||||||||||||||||||||||||||
| Disposal of treasury shares |
— | — | 544 | — | — | 647 | 1,191 | — | — | 1,191 | ||||||||||||||||||||||||||||||||||
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| — | (1,700,000 | ) | 544 | — | (308 | ) | 332 | (1,699,432 | ) | 1,695,050 | — | (4,382 | ) | |||||||||||||||||||||||||||||||
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| Balance as of March 31, 2026 |
71,000 | (87,989 | ) | 398,509 | 14,203 | (6,642,828 | ) | (6,247,105 | ) | 17,211,460 | 1,374,093 | 12,368,941 | ||||||||||||||||||||||||||||||||
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The accompanying notes are an integral part of the condensed separate interim financial statements.
5
Table of Contents
SK TELECOM CO., LTD.
Condensed Separate Interim Statements of Cash Flows
For the three-month periods ended March 31, 2026 and 2025
| (In millions of won) | Note | 2026 | 2025 | |||||||||
| Cash flows from operating activities: |
||||||||||||
| Cash generated from operating activities: |
||||||||||||
| Profit for the period |
474,592 | |||||||||||
| Adjustments for income and expenses |
31 | 751,348 | 689,228 | |||||||||
| Changes in assets and liabilities related to operating activities |
31 | (320,440 | ) | (197,370 | ) | |||||||
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|||||||||
| 763,600 | 966,450 | |||||||||||
| Interest received |
3,933 | 8,084 | ||||||||||
| Dividends received |
6,036 | 7,304 | ||||||||||
| Interest paid |
(75,650 | ) | (92,983 | ) | ||||||||
| Income tax paid |
(579 | ) | (1,274 | ) | ||||||||
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| Net cash provided by operating activities |
697,340 | 887,581 | ||||||||||
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| Cash flows from investing activities: |
||||||||||||
| Cash inflows from investing activities: |
||||||||||||
| Collection of short-term loans |
34,641 | 25,386 | ||||||||||
| Proceeds from disposals of long-term investment securities |
11,532 | 239 | ||||||||||
| Proceeds from disposals of investments in subsidiaries, associates and joint ventures |
9,275 | — | ||||||||||
| Proceeds from disposals of non-current assets held for sale |
— | 6,096 | ||||||||||
| Proceeds from disposals of property and equipment |
1,542 | 3,168 | ||||||||||
| Proceeds from disposals of intangible assets |
213 | 2,082 | ||||||||||
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| 57,203 | 36,971 | |||||||||||
| Cash outflows for investing activities: |
||||||||||||
| Increase in long-term financial instruments |
(16 | ) | — | |||||||||
| Increase in short-term loans |
(44,817 | ) | (35,268 | ) | ||||||||
| Acquisitions of long-term investment securities |
— | (500 | ) | |||||||||
| Acquisitions of investments in subsidiaries, associates and joint ventures |
(161 | ) | (14,314 | ) | ||||||||
| Acquisitions of property and equipment |
(229,940 | ) | (367,761 | ) | ||||||||
| Acquisitions of intangible assets |
(16,540 | ) | (5,412 | ) | ||||||||
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| (291,474 | ) | (423,255 | ) | |||||||||
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| Net cash used in investing activities |
(386,284 | ) | ||||||||||
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(Continued)
6
Table of Contents
SK TELECOM CO., LTD.
Condensed Separate Interim Statements of Cash Flows, Continued
For the three-month periods ended March 31, 2026 and 2025
| (In millions of won) | Note | 2026 | 2025 | |||||||||
| Cash flows from financing activities: |
||||||||||||
| Cash inflows from financing activities: |
||||||||||||
| Proceeds from short-term borrowings, net |
200,000 | |||||||||||
| Proceeds from issuance of debentures |
— | 398,303 | ||||||||||
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| — | 598,303 | |||||||||||
| Cash outflows for financing activities: |
||||||||||||
| Repayments of long-term borrowings |
— | (200,000 | ) | |||||||||
| Repayments of long-term payables – other |
(369,150 | ) | (369,150 | ) | ||||||||
| Repayments of debentures |
(280,000 | ) | (280,000 | ) | ||||||||
| Payments of interest on hybrid bonds |
(4,950 | ) | (4,950 | ) | ||||||||
| Repayments of lease liabilities |
(79,280 | ) | (71,225 | ) | ||||||||
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| (733,380 | ) | (925,325 | ) | |||||||||
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| Net cash used in financing activities |
(733,380 | ) | (327,022 | ) | ||||||||
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| Net increase (decrease) in cash and cash equivalents |
(270,311 | ) | 174,275 | |||||||||
| Cash and cash equivalents at beginning of the period |
771,861 | 1,165,158 | ||||||||||
| Effects of exchange rate changes on cash and cash equivalents |
810 | 87 | ||||||||||
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|||||||||
| Cash and cash equivalents at end of the period |
1,339,520 | |||||||||||
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The accompanying notes are an integral part of the condensed separate interim financial statements.
7
Table of Contents
SK TELECOM CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
March 31, 2026 and 2025
| 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 March 31, 2026, the Company’s total issued shares are held by the following shareholders:
| Number of shares | Percentage of total shares issued (%) |
|||||||
| SK Inc. |
65,668,397 | 30.57 | ||||||
| National Pension Service |
16,817,486 | 7.83 | ||||||
| Institutional investors and other shareholders |
126,668,526 | 58.98 | ||||||
| Kakao Investment Co., Ltd. |
3,846,487 | 1.79 | ||||||
| Treasury shares |
1,789,157 | 0.83 | ||||||
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| 214,790,053 | 100.00 | |||||||
|
|
|
|
|
|||||
| 2. | Basis of Preparation |
| (1) | Statement of compliance |
These condensed separate interim financial statements were prepared in accordance with Korean International Financial Reporting Standard (“KIFRS”) 1034 Interim Financial Reporting as part of the period covered by the Company’s KIFRS annual financial statements. These condensed separate interim financial statements do not include all of the disclosures required for full annual financial statements. Selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in financial position and performance of the Company since December 31, 2025. The accompanying condensed separate interim financial statements have been translated into English from the Korean language financial statements.
These interim financial statements are condensed separate interim financial statements prepared in accordance with KIFRS 1027, Separate Financial Statements, presented by a parent, an investor with joint control of or significant influence over an investee, in which the investments are accounted for at cost less impairment, if any.
8
Table of Contents
SK TELECOM CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
March 31, 2026 and 2025
| 2. | Basis of Preparation, Continued |
| (2) | Use of estimates and judgments |
1) Critical judgments, assumptions and estimation uncertainties
The preparation of the condensed separate interim financial statements in conformity with KIFRS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.
In preparing these condensed separate interim financial statements, the significant judgments made by management in applying the Company’s accounting policies and the key sources of estimation uncertainty were the same as those that applied to the separate financial statements as of and for the year ended December 31, 2025.
2) 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 directly reported to the finance executives.
The Company regularly reviews significant unobservable inputs and valuation adjustments. If third party information, such as broker quotes or pricing services, is used to measure fair values, then the Company assesses the evidence obtained from the third parties to support the conclusion that such valuations meet the requirements of KIFRS, including the level in the fair value hierarchy in which such valuations should be classified.
When measuring the fair value of an asset or a liability, the Company uses market observable data as far as possible. Fair values are categorized into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows:
• Level 1: |
quoted prices (unadjusted) in active markets for identical assets or liabilities; | |
• Level 2: |
inputs other than quoted prices included in Level 1 that are observable for the asset or 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 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.
The information about assumptions used for fair value measurements is included in note 28.
9
Table of Contents
SK TELECOM CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
March 31, 2026 and 2025
| 3. | Material Accounting Policies |
The material accounting policies applied by the Company in these condensed separate interim 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, 2025, except for the adoption of new and revised KIFRS applied from January 1, 2026, which are summarized below.
| (1) | New and amended standards and interpretations applied by the Company |
The Company has applied the following new and amended standards and interpretations for annual period beginning after January 1, 2026. The following amended KIFRS is effective from January 1, 2026 and it did not have a material impact on the Company’s condensed separate interim financial statements.
| • | Classification and measurement of financial instruments (Amendments to KIFRS 1109 ‘Financial Instruments’ and KIFRS 1107 ‘Financial Instruments: Disclosures’) |
| • | Contracts referencing nature-dependent electricity (Amendments to KIFRS 1109 ‘Financial Instruments’ and KIFRS 1107 ‘Financial Instruments: Disclosures’) |
| • | Annual Improvements to KIFRS - Volume 11 |
| (2) | New and amended standards and interpretations that are issued, but not yet applied by the Company |
The new and amended standard and interpretation that is issued, but not yet effective is disclosed below.
| • | KIFRS 1118 ‘Presentation and Disclosure in Financial Statements’ |
KIFRS 1118 ‘Presentation and Disclosure in Financial Statements’ replaces KIFRS 1001 ‘Presentation of Financial Statements’. KIFRS 1118 is expected to enhance comparability of financial performance among similar entities by providing useful information to users in analyzing and comparing an entity’s financial performance, with a focus on the statement of profit or loss.
KIFRS 1118 shall be applied for annual periods beginning on or after January 1, 2027, and earlier application is permitted. An entity shall apply this standard retrospectively in accordance with KIFRS 1008 ‘Accounting Policies, Changes in Accounting Estimates and Errors’. Accordingly, comparative information for the annual period ended December 31, 2026 will be restated in accordance with KIFRS 1118.
The Company is currently analyzing the key accounting policies that are expected to result in significant differences from those applied in the current financial statements upon adoption of KIFRS 1118.
10
Table of Contents
SK TELECOM CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
March 31, 2026 and 2025
| 4. | Trade and Other Receivables |
| (1) | Details of trade and other receivables as of March 31, 2026 and December 31, 2025 are as follows: |
| (In millions of won) | March 31, 2026 | |||||||||||
| Gross amount | Loss allowance | Carrying amount | ||||||||||
| Current assets: |
||||||||||||
| Accounts receivable – trade |
(125,757 | ) | 1,473,774 | |||||||||
| Short-term loans |
70,956 | (710 | ) | 70,246 | ||||||||
| Accounts receivable – other(*) |
661,640 | (18,613 | ) | 643,027 | ||||||||
| Guarantee deposits |
55,226 | — | 55,226 | |||||||||
| Accrued income |
677 | — | 677 | |||||||||
|
|
|
|
|
|
|
|||||||
| 2,388,030 | (145,080 | ) | 2,242,950 | |||||||||
| Non-current assets: |
||||||||||||
| Long-term loans |
19,204 | (18,890 | ) | 314 | ||||||||
| Long-term accounts receivable – other |
237,317 | — | 237,317 | |||||||||
| Guarantee deposits |
89,439 | — | 89,439 | |||||||||
|
|
|
|
|
|
|
|||||||
| 345,960 | (18,890 | ) | 327,070 | |||||||||
|
|
|
|
|
|
|
|||||||
| (163,970 | ) | 2,570,020 | ||||||||||
|
|
|
|
|
|
|
|||||||
| (*) | Gross and carrying amounts of accounts receivable – other as of March 31, 2026 include
|
| (In millions of won) | December 31, 2025 | |||||||||||
| Gross amount | Loss allowance | Carrying amount | ||||||||||
| Current assets: |
||||||||||||
| Accounts receivable – trade |
(116,705 | ) | 1,469,426 | |||||||||
| Short-term loans |
60,729 | (607 | ) | 60,122 | ||||||||
| Accounts receivable – other(*) |
410,657 | (17,521 | ) | 393,136 | ||||||||
| Guarantee deposits |
58,513 | — | 58,513 | |||||||||
| Accrued income |
1,089 | — | 1,089 | |||||||||
|
|
|
|
|
|
|
|||||||
| 2,117,119 | (134,833 | ) | 1,982,286 | |||||||||
| Non-current assets: |
||||||||||||
| Long-term loans |
19,254 | (18,891 | ) | 363 | ||||||||
| Long-term accounts receivable – other |
235,980 | — | 235,980 | |||||||||
| Guarantee deposits |
92,213 | — | 92,213 | |||||||||
|
|
|
|
|
|
|
|||||||
| 347,447 | (18,891 | ) | 328,556 | |||||||||
|
|
|
|
|
|
|
|||||||
| (153,724 | ) | 2,310,842 | ||||||||||
|
|
|
|
|
|
|
|||||||
| (*) | Gross and carrying amounts of accounts receivable – other as of December 31, 2025 include
|
11
Table of Contents
SK TELECOM CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
March 31, 2026 and 2025
| 4. | Trade and Other Receivables, Continued |
| (2) | Changes in the loss allowance on trade and other receivables measured at amortized cost for the three-month periods ended March 31, 2026 and 2025 are as follows: |
| (In millions of won) | For the three-month period ended March 31, 2026 | |||||||||||||||||||
| Beginning balance |
Impairment | Write-offs(*) | Collection of receivables previously written-off |
Ending balance |
||||||||||||||||
| Accounts receivable – trade |
7,650 | (423 | ) | 1,825 | 125,757 | |||||||||||||||
| Accounts receivable – other, etc. |
37,019 | 1,206 | (56 | ) | 44 | 38,213 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| 8,856 | (479 | ) | 1,869 | 163,970 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| (In millions of won) | For the three-month period ended March 31, 2025 | |||||||||||||||||||
| Beginning balance |
Impairment | Write-offs(*) | Collection of receivables previously written-off |
Ending balance |
||||||||||||||||
| Accounts receivable – trade |
9,305 | (375 | ) | 1,806 | 113,790 | |||||||||||||||
| Accounts receivable – other, etc. |
63,668 | 829 | (71 | ) | 167 | 64,593 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| 10,134 | (446 | ) | 1,973 | 178,383 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| (*) | The Company writes off trade and other receivables that are determined to be uncollectable due to reasons 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 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 years and classifies the accounts receivable – trade by their credit risk characteristics and days overdue. |
Due to the nature of its business, which involves wireless telecommunications, the Company’s accounts receivables from telecommunications revenue primarily consist of receivables from individual customers. As there are no significant differences in credit terms among customers, there is no material concentration of credit risk.
Receivables related to other revenue mainly consist of receivables from corporate customers. The Company transacts only with corporate customers whose credit risk is assessed as low. In addition, the Company is not exposed to significant credit concentration risk as the Company monitors the credit ratings of these customers on a regular basis and evaluates their creditworthiness accordingly. Although contract assets are subject to the expected credit loss assessment, no significant credit risk has been identified.
12
Table of Contents
SK TELECOM CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
March 31, 2026 and 2025
| 5. | 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. The Company recognizes costs among the commissions that would not have incurred if a contract had not been entered into with a customer as prepaid expenses. These prepaid expenses are amortized on a straight-line basis over the expected customer retention periods.
| (1) | Details of prepaid expenses as of March 31, 2026 and December 31, 2025 are as follows: |
| (In millions of won) | March 31, 2026 | December 31, 2025 | ||||||
| Current assets: |
||||||||
| Incremental costs of obtaining contracts |
1,950,442 | |||||||
| Others |
68,844 | 46,607 | ||||||
|
|
|
|
|
|||||
| 1,997,049 | ||||||||
|
|
|
|
|
|||||
| Non-current assets: |
||||||||
| Incremental costs of obtaining contracts |
1,022,559 | |||||||
| Others |
37,494 | 42,679 | ||||||
|
|
|
|
|
|||||
| 1,065,238 | ||||||||
|
|
|
|
|
|||||
| (2) | Incremental costs of obtaining contracts |
Amortization in connection with incremental costs of obtaining contracts recognized as an asset for the three-month periods ended March 31, 2026 and 2025 are as follows:
| (In millions of won) | For the three-month period ended | |||||||
| March 31, 2026 | March 31, 2025 | |||||||
| Amortization recognized |
578,985 | |||||||
13
Table of Contents
SK TELECOM CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
March 31, 2026 and 2025
| 6. | Contract Assets and Liabilities |
In case of providing both wireless telecommunication services and sales of handsets, the Company allocated the consideration based on relative stand-alone selling prices and recognized unbilled receivables from handset sales as contract assets. The Company recognized receipts in advance for prepaid telecommunications services and solution services, and unearned revenue for customer loyalty programs as contract liabilities.
| (1) | Details of contract assets and liabilities as of March 31, 2026 and December 31, 2025 are as follows: |
| (In millions of won) | March 31, 2026 | December 31, 2025 | ||||||
| Contract assets |
17,321 | |||||||
| Contract liabilities: |
||||||||
| Wireless service contracts |
20,307 | 19,503 | ||||||
| Customer loyalty programs |
6,184 | 5,920 | ||||||
| Others |
65,346 | 84,889 | ||||||
|
|
|
|
|
|||||
| 110,312 | ||||||||
|
|
|
|
|
|||||
| (2) | Amounts of revenue recognized for the three-month periods ended March 31, 2026 and 2025 related to the
contract liabilities carried forward from the prior periods are |
14
Table of Contents
SK TELECOM CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
March 31, 2026 and 2025
| 7. | Long-term Investment Securities |
Details of long-term investment securities as of March 31, 2026 and December 31, 2025 are as follows:
| (In millions of won) | Category | March 31, 2026 | December 31, 2025 | |||||||||
| Equity instruments |
FVOCI | (*) | 2,337,149 | |||||||||
| Debt instruments |
FVTPL | 54,477 | 59,847 | |||||||||
|
|
|
|
|
|||||||||
| 2,396,996 | ||||||||||||
|
|
|
|
|
|||||||||
| (*) | The Company designated investments in equity instruments that are not held for trading as financial assets at FVOCI. |
| 8. | Investments in Subsidiaries, Associates and Joint Ventures |
| (1) | Investments in subsidiaries, associates and joint ventures as of March 31, 2026 and December 31, 2025 are as follows: |
| (In millions of won) | March 31, 2026 | December 31, 2025 | ||||||
| Investments in subsidiaries |
4,538,057 | |||||||
| Investments in associates and joint ventures |
1,350,264 | 1,354,669 | ||||||
|
|
|
|
|
|||||
| 5,892,726 | ||||||||
|
|
|
|
|
|||||
| (2) | Details of investments in subsidiaries as of March 31, 2026 and December 31, 2025 are as follows: |
| (In millions of won, except for share data) | ||||||||||||||||
| March 31, 2026 | December 31, 2025 | |||||||||||||||
| Number of shares |
Ownership (%) |
Carrying amount |
Carrying amount |
|||||||||||||
| SK Telink Co., Ltd. |
1,432,627 | 100.0 | 244,040 | |||||||||||||
| SK Broadband Co., Ltd. |
398,595,779 | 99.1 | 3,285,853 | 3,285,853 | ||||||||||||
| PS&Marketing Corporation |
66,000,000 | 100.0 | 314,038 | 314,038 | ||||||||||||
| SERVICE ACE Co., Ltd. |
4,385,400 | 100.0 | 21,963 | 21,963 | ||||||||||||
| SK Telecom China Holdings Co., Ltd. |
— | 100.0 | 40,365 | 40,365 | ||||||||||||
| SK Telecom Americas, Inc. |
122 | 100.0 | 129,803 | 129,803 | ||||||||||||
| Atlas Investment(*) |
— | 100.0 | 240,801 | 240,640 | ||||||||||||
| SAPEON Inc. |
400,000 | 62.5 | 48,456 | 48,456 | ||||||||||||
| Astra AI Infra LLC |
— | 100.0 | 182,733 | 182,733 | ||||||||||||
| SK O&S Co., Ltd. and others |
— | — | 30,166 | 30,166 | ||||||||||||
|
|
|
|
|
|||||||||||||
| 4,538,057 | ||||||||||||||||
|
|
|
|
|
|||||||||||||
| (*) | The Company contributed an additional |
15
Table of Contents
SK TELECOM CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
March 31, 2026 and 2025
| 8. | Investments in Subsidiaries, Associates and Joint Ventures, Continued |
| (3) | Details of investments in associates and joint ventures as of March 31, 2026 and December 31, 2025 are as follows, Continued: |
| (In millions of won, except for share data) | ||||||||||||||||
| March 31, 2026 | December 31, 2025 | |||||||||||||||
| Number of shares |
Ownership (%) |
Carrying amount |
Carrying amount |
|||||||||||||
| Investments in associates: |
||||||||||||||||
| SK China Company Ltd. |
10,928,921 | 27.3 | 601,192 | |||||||||||||
| Korea IT Fund(*1) |
190 | 63.3 | 220,957 | 220,957 | ||||||||||||
| SK Technology Innovation Company(*2) |
6,586 | 49.0 | 20,417 | 23,699 | ||||||||||||
| SM Culture & Contents Co., Ltd. |
22,033,898 | 22.8 | 29,305 | 29,305 | ||||||||||||
| SK South East Asia Investment Pte. Ltd. |
300,000,000 | 20.0 | 344,240 | 344,240 | ||||||||||||
| Citadel Pacific Telecom Holdings, LLC(*3) |
1,734,109 | 15.0 | 36,487 | 36,487 | ||||||||||||
| CMES Robotics Inc. (Formerly, CMES Inc.)(*3) |
763,968 | 6.5 | 5,488 | 5,488 | ||||||||||||
| Konan Technology Inc.(*3) |
2,359,160 | 18.9 | 22,413 | 22,413 | ||||||||||||
| Start-up Win-Win Fund and others(*3) |
— | — | 61,765 | 62,888 | ||||||||||||
|
|
|
|
|
|||||||||||||
| 1,342,264 | 1,346,669 | |||||||||||||||
|
|
|
|
|
|||||||||||||
| Investments in joint ventures: |
||||||||||||||||
| UTC Kakao-SK Telecom ESG Fund(*4) |
8,000 | 48.2 | 8,000 | 8,000 | ||||||||||||
|
|
|
|
|
|||||||||||||
| 1,354,669 | ||||||||||||||||
|
|
|
|
|
|||||||||||||
| (*1) | Investment in Korea IT Fund was classified as investment in associates as the Company does not have control over the investee under the contractual agreement with other shareholders. |
| (*2) | The Company recognized a |
| (*3) | These investments were classified as investments in associates as the Company can exercise significant influence through its right to appoint the members of the board of directors even though the Company has less than 20% of equity interests. |
| (*4) | This investment was classified as investment in joint venture as the Company has a joint control pursuant to the agreement with the other shareholders. |
16
Table of Contents
SK TELECOM CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
March 31, 2026 and 2025
| 8. | Investments in Subsidiaries, Associates and Joint Ventures, Continued |
| (4) | Market value of investments in listed associates as of March 31, 2026 and December 31, 2025 are as follows: |
| (In millions of won, except for share data) | ||||||||||||||||||||||||
| March 31, 2026 | December 31, 2025 | |||||||||||||||||||||||
| Market price per share (in won) |
Number of shares |
Market value |
Market price per share (in won) |
Number of shares |
Market value |
|||||||||||||||||||
| SM Culture & Contents Co., Ltd. |
22,033,898 | 24,061 | 1,330 | 22,033,898 | 29,305 | |||||||||||||||||||
| Konan Technology Inc. |
17,610 | 2,359,160 | 41,545 | 19,710 | 2,359,160 | 46,499 | ||||||||||||||||||
| CMES Robotics Inc. (Formerly, CMES Inc.) |
29,200 | 763,968 | 22,308 | 33,100 | 763,968 | 25,287 | ||||||||||||||||||
| 9. | Property and Equipment |
Changes in property and equipment for the three-month periods ended March 31, 2026 and 2025 are as follows:
| (In millions of won) | ||||||||
| For the three-month period ended | ||||||||
| March 31, 2026 | March 31, 2025 | |||||||
| Beginning balance |
8,515,225 | |||||||
| Acquisition |
69,440 | 65,549 | ||||||
| Disposal |
(25,248 | ) | (13,682 | ) | ||||
| Depreciation |
(484,067 | ) | (494,611 | ) | ||||
| Impairment |
— | (359 | ) | |||||
| Transfer(*) |
(10,695 | ) | (30,830 | ) | ||||
|
|
|
|
|
|||||
| Ending balance |
8,041,292 | |||||||
|
|
|
|
|
|||||
| (*) | Transfer includes transfers to intangible assets, transfers to or from investment properties, transfers to non-current assets held for sale, and others. |
17
Table of Contents
SK TELECOM CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
March 31, 2026 and 2025
| 10. | Investment Property |
Changes in investment property for the three-month periods ended March 31, 2026 and 2025 are as follows:
| (In millions of won) | ||||||||
| For the three-month period ended | ||||||||
| March 31, 2026 | March 31, 2025 | |||||||
| Beginning balance |
35,462 | |||||||
| Depreciation |
(444 | ) | (546 | ) | ||||
| Transfer(*) |
(12,570 | ) | 29 | |||||
|
|
|
|
|
|||||
| Ending balance |
34,945 | |||||||
|
|
|
|
|
|||||
| (*) | Transfer includes transfers to or from property and equipment, transfers to non-current assets held for sale, and others. |
| 11. | Leases |
| (1) | Details of the right-of-use assets as of March 31, 2026 and December 31, 2025 are as follows: |
| (In millions of won) | ||||||||
| March 31, 2026 | December 31, 2025 | |||||||
| Right-of-use assets: |
||||||||
| Land, buildings and structures |
709,924 | |||||||
| Others |
241,011 | 259,359 | ||||||
|
|
|
|
|
|||||
| 969,283 | ||||||||
|
|
|
|
|
|||||
| (2) | Details of amounts recognized in the condensed separate interim statements of income for the three-month periods ended March 31, 2026 and 2025 as a lessee are as follows: |
| (In millions of won) | ||||||||
| For the three-month period ended | ||||||||
| March 31, 2026 | March 31, 2025 | |||||||
| Depreciation of right-of-use assets: |
||||||||
| Land, buildings and structures |
69,596 | |||||||
| Others(*) |
18,184 | 18,191 | ||||||
|
|
|
|
|
|||||
| 87,787 | ||||||||
|
|
|
|
|
|||||
| Interest expense on lease liabilities |
7,462 | |||||||
| (*) | Others include the amount reclassified as research and development expenses related to the lease contract for research and development facilities. |
Expenses related to short-term leases and leases of low-value assets that the Company recognized are immaterial.
18
Table of Contents
SK TELECOM CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
March 31, 2026 and 2025
| 12. | Intangible Assets |
| (1) | Changes in intangible assets for the three-month periods ended March 31, 2026 and 2025 are as follows: |
| (In millions of won) | ||||||||
| For the three-month period ended | ||||||||
| March 31, 2026 | March 31, 2025 | |||||||
| Beginning balance |
1,683,018 | |||||||
| Acquisition |
16,540 | 5,412 | ||||||
| Disposal |
(107 | ) | (1,026 | ) | ||||
| Amortization |
(164,131 | ) | (165,748 | ) | ||||
| Transfer(*) |
9,896 | 30,576 | ||||||
|
|
|
|
|
|||||
| Ending balance |
1,552,232 | |||||||
|
|
|
|
|
|||||
| (*) | Transfer includes transfers from property and equipment, and others. |
| (2) | Details of frequency usage rights as of March 31, 2026 are as follows: |
| (In millions of won) | Amount | Amortization methods |
Commencement of amortization |
Completion of amortization |
||||||||||||
| 800 MHz license |
Jul. 2021 | Jun. 2026 | ||||||||||||||
| 1.8 GHz license |
70,522 | Dec. 2021 | Dec. 2026 | |||||||||||||
| 2.6 GHz license |
91,055 | Straight-line basis | Sep. 2016 | Dec. 2026 | ||||||||||||
| 2.1 GHz license |
53,001 | Dec. 2021 | Dec. 2026 | |||||||||||||
| 3.5 GHz license |
321,164 | Apr. 2019 | Nov. 2028 | |||||||||||||
|
|
|
|||||||||||||||
|
|
|
|||||||||||||||
19
Table of Contents
SK TELECOM CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
March 31, 2026 and 2025
| 13. | Borrowings and Debentures |
| (1) | Short-term borrowings as of March 31, 2026 and December 31, 2025 are as follows: |
| (In millions of won) | ||||||||||||||
| Lender |
Annual interest rate (%) |
Maturity | March 31, 2026 | December 31, 2025 | ||||||||||
| Bank of China Ltd. |
2.83 | Oct. 29, 2026 | 130,000 | |||||||||||
| (2) | There were no changes in long-term borrowings for the three-month period ended March 31, 2026. |
| (3) | Changes in debentures for the three-month period ended March 31, 2026 are as follows: |
| (In millions of won) | ||||||||||||||||||||
| Purpose | Annual interest rate (%) |
Maturity | Face value | Book value | ||||||||||||||||
| Current |
664,696 | |||||||||||||||||||
| Non-current |
5,429,430 | 5,416,644 | ||||||||||||||||||
|
|
|
|
|
|||||||||||||||||
| As of January 1, 2026 |
6,094,430 | 6,081,340 | ||||||||||||||||||
|
|
|
|
|
|||||||||||||||||
| Debentures repaid: |
||||||||||||||||||||
| Unsecured corporate bonds |
Operating fund | 2.08 | Mar. 4, 2026 | (90,000 | ) | (90,000 | ) | |||||||||||||
| Refinancing fund | 1.39 | Jan. 15, 2026 | (80,000 | ) | (80,000 | ) | ||||||||||||||
| Refinancing fund | 3.65 | Feb. 17, 2026 | (110,000 | ) | (110,000 | ) | ||||||||||||||
|
|
|
|
|
|||||||||||||||||
| (280,000 | ) | (280,000 | ) | |||||||||||||||||
|
|
|
|
|
|||||||||||||||||
| Other changes(*1) |
54,950 | 55,948 | ||||||||||||||||||
| Current(*2) |
565,000 | 564,609 | ||||||||||||||||||
| Non-current(*2) |
5,304,380 | 5,292,679 | ||||||||||||||||||
|
|
|
|
|
|||||||||||||||||
| As of March 31, 2026 |
5,857,288 | |||||||||||||||||||
|
|
|
|
|
|||||||||||||||||
| (*1) | Other changes primarily reflect foreign currency translation effect of debentures and amortization of debentures issuance discount for the three-month period ended March 31, 2026. |
| (*2) |
|
20
Table of Contents
SK TELECOM CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
March 31, 2026 and 2025
| 14. | Long-Term Payables – Other |
| (1) | As of March 31, 2026 and December 31, 2025 details of long-term payables – other which consist of payables related to the acquisition of frequency usage rights are as follows (See note 12): |
| (In millions of won) | March 31, 2026 | December 31, 2025 | ||||||
| Long-term payables – other |
551,925 | |||||||
| Present value discount on long-term payables – other |
(2,786 | ) | (3,964 | ) | ||||
| Current portion of long-term payables – other |
(90,218 | ) | (368,572 | ) | ||||
|
|
|
|
|
|||||
| Carrying amount at period end |
179,389 | |||||||
|
|
|
|
|
|||||
| (2) | Repayment of the principal portion of long-term payables – other amounted to
|
| (In millions of won) | Amount | |||
| Less than 1 year |
||||
| 1 ~ 3 years |
91,387 | |||
|
|
|
|||
|
|
|
|||
21
Table of Contents
SK TELECOM CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
March 31, 2026 and 2025
| 15. | Provisions |
Changes in provisions for the three-month periods ended March 31, 2026 and 2025 are as follows:
| (In millions of won) | For the three-month period ended March 31, 2026 | |||||||||||||||||||
| Beginning balance |
Increase | Utilization | Reversal | Ending balance |
||||||||||||||||
| Provision for restoration |
1,397 | (1,322 | ) | (147 | ) | 99,274 | ||||||||||||||
| Emission allowance |
— | 1,108 | — | — | 1,108 | |||||||||||||||
| Other provisions |
107,921 | — | (2,308 | ) | — | 105,613 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| 2,505 | (3,630 | ) | (147 | ) | 205,995 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| (In millions of won) | For the three-month period ended March 31, 2025 | |||||||||||||||||||
| Beginning balance |
Increase | Utilization | Reversal | Ending balance |
||||||||||||||||
| Provision for restoration |
1,194 | (1,069 | ) | (227 | ) | 100,975 | ||||||||||||||
| Emission allowance |
28 | 534 | — | (1 | ) | 561 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| 1,728 | (1,069 | ) | (228 | ) | 101,536 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| 16. | Defined Benefit Assets |
| (1) | Details of defined benefit assets as of March 31, 2026 and December 31, 2025 are as follows: |
| (In millions of won) | March 31, 2026 | December 31, 2025 | ||||||
| Present value of defined benefit obligations |
442,155 | |||||||
| Fair value of plan assets |
(502,417 | ) | (542,367 | ) | ||||
|
|
|
|
|
|||||
| (100,212 | ) | |||||||
|
|
|
|
|
|||||
| (2) | Total cost of defined benefit plan, which is recognized in profit or loss for the three-month periods ended March 31, 2026 and 2025 are as follows: |
| (In millions of won) | For the three-month period ended | |||||||
| March 31, 2026 | March 31, 2025 | |||||||
| Current service cost |
12,690 | |||||||
| Net interest income |
(824 | ) | (862 | ) | ||||
|
|
|
|
|
|||||
| 11,828 | ||||||||
|
|
|
|
|
|||||
22
Table of Contents
SK TELECOM CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
March 31, 2026 and 2025
| 17. | Share Capital and Capital Surplus and Others |
| (1) | The Company’s outstanding share capital consists entirely of common shares with a par value of
|
| (In millions of won, except for share data) | ||||||||
| March 31, 2026 | December 31, 2025 | |||||||
| Number of authorized shares |
670,000,000 | 670,000,000 | ||||||
| Number of issued shares |
214,790,053 | 214,790,053 | ||||||
| Share capital: |
||||||||
| Common shares(*1) |
30,493 | |||||||
| Capital surplus and others: |
||||||||
| Paid-in surplus(*2) |
71,000 | 1,771,000 | ||||||
| Treasury shares |
(87,989 | ) | (88,533 | ) | ||||
| Hybrid bonds(*3) |
398,509 | 398,509 | ||||||
| Share option(Note 18) |
14,203 | 14,511 | ||||||
| Others |
(6,642,828 | ) | (6,643,160 | ) | ||||
|
|
|
|
|
|||||
| (4,547,673 | ) | |||||||
|
|
|
|
|
|||||
| (*1) | In 2002, 2003 and 2024, the Company retired treasury shares with reduction of its retained earnings before appropriation. As a result, the Company’s issued shares have decreased without a change in share capital. |
| (*2) |
|
| (*3) | As there is no contractual obligation to deliver financial assets to the holders of hybrid bonds, the Company classified the hybrid bonds as equity. When in liquidation or bankruptcy, these hybrid bonds are senior only to common shares. |
| (2) | There were no changes in share capital for the three-month periods ended March 31, 2026 and 2025, and details of shares outstanding as of March 31, 2026 and 2025 are as follows: |
| (In shares) | ||||||||||||||||||||||||
| March 31, 2026 | March 31, 2025 | |||||||||||||||||||||||
| Issued shares |
Treasury shares |
Outstanding shares |
Issued shares |
Treasury shares |
Outstanding shares |
|||||||||||||||||||
| Shares outstanding |
214,790,053 | 1,789,157 | 213,000,896 | 214,790,053 | 1,903,711 | 212,886,342 | ||||||||||||||||||
| (3) | Details of treasury shares as of March 31, 2026 and December 31, 2025 are as follows: |
| (In millions of won, except for share data) | ||||||||
| March 31, 2026 | December 31, 2025 | |||||||
| Number of shares(*) |
1,789,157 | 1,807,778 | ||||||
| Acquisition cost |
88,533 | |||||||
| (*) | The Company granted 18,621 treasury shares (acquisition cost: |
23
Table of Contents
SK TELECOM CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
March 31, 2026 and 2025
| 18. | Share-Based Payment Arrangement |
The Company operates various share-based payment arrangements to align the interests of management with shareholders and to link executive
compensation to the growth of corporate value. The Company has recognized W12,605 million of capital surplus and others related to equity-settled share-based payment arrangements, and W4,717 million of
accrued expenses related to share-based payment arrangements with cash alternatives, as of March 31, 2026.
There were no changes in the number of equity-settled share-based payment arrangements for the three-month periods ended March 31, 2026 and 2025, and the changes in the number of share-based payment arrangements with cash alternatives were as follows:
| (In shares) | ||||||||
| For the three-month period ended | ||||||||
| March 31, 2026 | March 31, 2025 | |||||||
| Beginning balance |
299,918 | 637,326 | ||||||
| Exercised |
(99,688 | ) | — | |||||
|
|
|
|
|
|||||
| Ending balance |
200,230 | 637,326 | ||||||
|
|
|
|
|
|||||
24
Table of Contents
SK TELECOM CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
March 31, 2026 and 2025
| 19. | Retained Earnings |
Retained earnings as of March 31, 2026 and December 31, 2025 are as follows:
| (In millions of won) | ||||||||
| March 31, 2026 | December 31, 2025 | |||||||
| Appropriated: |
||||||||
| Legal reserve |
22,320 | |||||||
| Reserve |
15,096,438 | 14,996,438 | ||||||
|
|
|
|
|
|||||
| 15,118,758 | 15,018,758 | |||||||
| Unappropriated |
2,092,702 | 181,157 | ||||||
|
|
|
|
|
|||||
| 15,199,915 | ||||||||
|
|
|
|
|
|||||
| 20. | Reserves |
| (1) | Details of reserves, net of taxes, as of March 31, 2026 and December 31, 2025 are as follows: |
| (In millions of won) | ||||||||
| March 31, 2026 | December 31, 2025 | |||||||
| Valuation gain on FVOCI |
1,300,865 | |||||||
| Valuation gain on derivatives |
10,268 | 7,450 | ||||||
|
|
|
|
|
|||||
| 1,308,315 | ||||||||
|
|
|
|
|
|||||
| (2) | Changes in reserves for the three-month periods ended March 31, 2026 and 2025 are as follows: |
| (In millions of won) | ||||||||||||
| Valuation gain (loss) on financial assets at FVOCI |
Valuation gain (loss) on derivatives |
Total | ||||||||||
| Balance at January 1, 2025 |
(4,995 | ) | 208,730 | |||||||||
| Changes, net of taxes |
(7,667 | ) | (890 | ) | (8,557 | ) | ||||||
|
|
|
|
|
|
|
|||||||
| Balance at March 31, 2025 |
(5,885 | ) | 200,173 | |||||||||
|
|
|
|
|
|
|
|||||||
| Balance at January 1, 2026 |
7,450 | 1,308,315 | ||||||||||
| Changes, net of taxes |
62,960 | 2,818 | 65,778 | |||||||||
|
|
|
|
|
|
|
|||||||
| Balance at March 31, 2026 |
10,268 | 1,374,093 | ||||||||||
|
|
|
|
|
|
|
|||||||
25
Table of Contents
SK TELECOM CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
March 31, 2026 and 2025
| 21. | 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) | ||||||||
| For the three-month period ended | ||||||||
| March 31, 2026 | March 31, 2025 | |||||||
| Products transferred at a point in time: |
| |||||||
| Product sales |
39,226 | |||||||
| Services transferred over time: |
| |||||||
| Wireless service revenue(*1) |
2,581,328 | 2,661,557 | ||||||
| Cellular interconnection revenue |
91,230 | 97,461 | ||||||
| Others(*2) |
400,030 | 369,211 | ||||||
|
|
|
|
|
|||||
| 3,072,588 | 3,128,229 | |||||||
|
|
|
|
|
|||||
| 3,167,455 | ||||||||
|
|
|
|
|
|||||
| (*1) | Wireless service revenue includes revenue from wireless voice and data transmission services, which is collected from the wireless subscribers. |
| (*2) | Other revenue includes revenue from billing and collection services, solution services, and other miscellaneous services. |
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.
26
Table of Contents
SK TELECOM CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
March 31, 2026 and 2025
| 22. | Other Operating Expenses |
Details of other operating expenses for the three-month periods ended March 31, 2026 and 2025 are as follows:
| (In millions of won) | ||||||||
| For the three-month period ended | ||||||||
| March 31, 2026 | March 31, 2025 | |||||||
| Communication |
6,458 | |||||||
| Utilities |
95,071 | 96,882 | ||||||
| Taxes and dues |
6,305 | 6,756 | ||||||
| Repair |
59,096 | 60,251 | ||||||
| Research and development |
79,090 | 81,948 | ||||||
| Training |
6,129 | 5,365 | ||||||
| Bad debt for accounts receivable – trade |
7,650 | 9,305 | ||||||
| Supplies and others |
15,472 | 13,144 | ||||||
|
|
|
|
|
|||||
| 280,109 | ||||||||
|
|
|
|
|
|||||
| 23. | Other Non-Operating Income and Expenses |
Details of other non-operating income and expenses for the three-month periods ended March 31, 2026 and 2025 are as follows:
| (In millions of won) | ||||||||
| For the three-month period ended | ||||||||
| March 31, 2026 | March 31, 2025 | |||||||
| Other Non-operating Income: |
||||||||
| Gain on disposal of property and equipment and intangible assets |
5,504 | |||||||
| Others |
1,622 | 1,376 | ||||||
|
|
|
|
|
|||||
| 6,880 | ||||||||
|
|
|
|
|
|||||
| Other Non-operating Expenses: |
||||||||
| Loss on disposal of property and equipment and intangible assets |
1,707 | |||||||
| Impairment loss on property and equipment and intangible assets |
— | 359 | ||||||
| Donations |
2,254 | 1,910 | ||||||
| Bad debt for accounts receivable – other |
1,206 | 829 | ||||||
| Others |
237 | 507 | ||||||
|
|
|
|
|
|||||
| 5,312 | ||||||||
|
|
|
|
|
|||||
27
Table of Contents
SK TELECOM CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
March 31, 2026 and 2025
| 24. | Finance Income and Costs |
| (1) | Details of finance income and costs for the three-month periods ended March 31, 2026 and 2025 are as follows: |
| (In millions of won) | ||||||||
| For the three-month period ended | ||||||||
| March 31, 2026 | March 31, 2025 | |||||||
| Finance Income: |
||||||||
| Interest income |
10,863 | |||||||
| Dividends |
80,969 | 187,068 | ||||||
| Gain on foreign currency transactions |
5,061 | 1,815 | ||||||
| Gain on foreign currency translations |
1,641 | 620 | ||||||
| Gain relating to financial instruments at FVTPL |
558 | 4 | ||||||
|
|
|
|
|
|||||
| 200,370 | ||||||||
|
|
|
|
|
|||||
| Finance Costs: |
||||||||
| Interest expenses |
75,804 | |||||||
| Loss on sale of accounts receivable – other |
3,777 | 4,943 | ||||||
| Loss on foreign currency transactions |
5,353 | 3,363 | ||||||
| Loss on foreign currency translations |
403 | 386 | ||||||
| Loss relating to financial instruments at FVTPL |
3,038 | 153 | ||||||
|
|
|
|
|
|||||
| 84,649 | ||||||||
|
|
|
|
|
|||||
| (2) | Details of interest income included in finance income for the three-month periods ended March 31, 2026 and 2025 are as follows: |
| (In millions of won) | ||||||||
| For the three-month period ended | ||||||||
| March 31, 2026 | March 31, 2025 | |||||||
| Interest income on cash equivalents and short-term financial instruments |
5,865 | |||||||
| Interest income on loans and others |
5,088 | 4,998 | ||||||
|
|
|
|
|
|||||
| 10,863 | ||||||||
|
|
|
|
|
|||||
| (3) | Details of interest expenses included in finance costs for the three-month periods ended March 31, 2026 and 2025 are as follows: |
| (In millions of won) | ||||||||
| For the three-month period ended | ||||||||
| March 31, 2026 | March 31, 2025 | |||||||
| Interest expense on borrowings |
4,292 | |||||||
| Interest expense on debentures |
47,933 | 52,589 | ||||||
| Others |
13,181 | 18,923 | ||||||
|
|
|
|
|
|||||
| 75,804 | ||||||||
|
|
|
|
|
|||||
28
Table of Contents
SK TELECOM CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
March 31, 2026 and 2025
| 24. | Finance Income and Costs, Continued |
| (4) | Details of impairment losses for financial assets for the three-month periods ended March 31, 2026 and 2025 are as follows: |
| (In millions of won) | ||||||||
| For the three-month period ended | ||||||||
| March 31, 2026 | March 31, 2025 | |||||||
| Accounts receivable – trade |
9,305 | |||||||
| Other receivables |
1,206 | 829 | ||||||
|
|
|
|
|
|||||
| 10,134 | ||||||||
|
|
|
|
|
|||||
| 25. | Income Tax Expense |
The income tax expense was calculated by considering current tax expense, adjusted for changes in estimates related to prior periods, and deferred tax expense due to origination and reversal of temporary differences and income tax expense that relates to items recognized outside profit or loss.
29
Table of Contents
SK TELECOM CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
March 31, 2026 and 2025
| 26. | 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 |
| Basic | earnings per share for the three-month periods ended March 31, 2026 and 2025 are calculated as follows: |
| (In millions of won, except for share data and basic earnings per share) | ||||||||
| For the three-month period ended | ||||||||
| March 31,2026 | March 31, 2025 | |||||||
| Profit for the period |
474,592 | |||||||
| Interest on hybrid bonds |
(4,950 | ) | (4,950 | ) | ||||
|
|
|
|
|
|||||
| Profit for the period on common shares |
327,742 | 469,642 | ||||||
| Weighted average number of common shares outstanding (in shares)(*) |
212,989,275 | 212,886,342 | ||||||
|
|
|
|
|
|||||
| Basic earnings per share (in won) |
2,206 | |||||||
|
|
|
|
|
|||||
| (*) | Weighted average number of common shares outstanding reflects adjustments for changes in the number of treasury shares for the three-month periods ended March 31, 2026 and 2025. |
| (2) | Diluted earnings per share |
| Diluted | earnings per share for the three-month periods ended March 31, 2026 and 2025 are calculated as follows: |
| (In millions of won, except for share data and diluted earnings per share) | ||||||||
| For the three-month period ended | ||||||||
| March 31, 2026 | March 31, 2025 | |||||||
| Profit for the period on common shares |
469,642 | |||||||
| Adjusted weighted average number of common shares outstanding (in shares)(*) |
213,273,001 | 213,455,085 | ||||||
|
|
|
|
|
|||||
| Diluted earnings per share (in won) |
2,200 | |||||||
|
|
|
|
|
|||||
| (*) | Diluted earnings per share is calculated by applying the weighted average number of ordinary shares outstanding, adjusted for the assumed conversion of all dilutive potential ordinary shares into ordinary shares. |
30
Table of Contents
SK TELECOM CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
March 31, 2026 and 2025
| 27. | Categories of Financial Instruments |
| (1) | Financial assets by category as of March 31, 2026 and December 31, 2025 are as follows: |
| (In millions of won) | March 31, 2026 | |||||||||||||||||||
| Financial assets at FVTPL |
Equity instruments at FVOCI |
Financial assets at amortized cost |
Derivatives hedging instrument |
Total | ||||||||||||||||
| Cash and cash equivalents |
— | 212,360 | — | 502,360 | ||||||||||||||||
| Financial instruments |
— | — | 89,525 | — | 89,525 | |||||||||||||||
| Long-term investment securities(*) |
54,477 | 2,421,286 | — | — | 2,475,763 | |||||||||||||||
| Accounts receivable – trade |
— | — | 1,473,774 | — | 1,473,774 | |||||||||||||||
| Loans and other receivables |
335,873 | — | 746,964 | — | 1,082,837 | |||||||||||||||
| Derivative financial assets |
— | — | — | 212,469 | 212,469 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| 2,421,286 | 2,522,623 | 212,469 | 5,836,728 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| (*) | The Company designated |
| (In millions of won) | December 31, 2025 | |||||||||||||||||||
| Financial assets at FVTPL |
Equity instruments at FVOCI |
Financial assets at amortized cost |
Derivatives hedging instrument |
Total | ||||||||||||||||
| Cash and cash equivalents |
— | 421,861 | — | 771,861 | ||||||||||||||||
| Financial instruments |
— | — | 89,509 | — | 89,509 | |||||||||||||||
| Long-term investment securities(*) |
59,847 | 2,337,149 | — | — | 2,396,996 | |||||||||||||||
| Accounts receivable – trade |
— | — | 1,469,426 | — | 1,469,426 | |||||||||||||||
| Loans and other receivables |
189,963 | — | 638,789 | — | 828,752 | |||||||||||||||
| Derivative financial assets |
— | — | — | 156,256 | 156,256 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| 2,337,149 | 2,619,585 | 156,256 | 5,712,800 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| (*) | The Company designated |
31
Table of Contents
SK TELECOM CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
March 31, 2026 and 2025
| 27. | Categories of Financial Instruments, Continued |
| (2) | Financial liabilities by category as of March 31, 2026 and December 31, 2025 are as follows: |
| (In millions of won) | March 31, 2026 | |||||||||||||||
| Financial liabilities at FVTPL |
Financial liabilities at amortized cost |
Derivatives hedging instrument |
Total | |||||||||||||
| Derivative financial liabilities |
— | 225 | 806 | |||||||||||||
| Borrowings |
— | 630,000 | — | 630,000 | ||||||||||||
| Debentures |
— | 5,857,288 | — | 5,857,288 | ||||||||||||
| Lease liabilities(*) |
— | 1,075,729 | — | 1,075,729 | ||||||||||||
| Accounts payable – other and others |
— | 2,545,378 | — | 2,545,378 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| 10,108,395 | 225 | 10,109,201 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| (In millions of won) | December 31, 2025 | |||||||||||||||
| Financial liabilities at FVTPL |
Financial liabilities at amortized cost |
Derivatives hedging instrument |
Total | |||||||||||||
| Derivative financial liabilities |
— | 621 | 1,202 | |||||||||||||
| Borrowings |
— | 630,000 | — | 630,000 | ||||||||||||
| Debentures |
— | 6,081,340 | — | 6,081,340 | ||||||||||||
| Lease liabilities(*) |
— | 1,137,608 | — | 1,137,608 | ||||||||||||
| Accounts payable – other and others |
— | 3,190,133 | — | 3,190,133 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| 11,039,081 | 621 | 11,040,283 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| (*) | The categorization of financial liabilities is not applicable to lease liabilities, but they are classified as financial liabilities measured at amortized cost, considering the nature of measuring liabilities. |
32
Table of Contents
SK TELECOM CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
March 31, 2026 and 2025
| 28. | Financial Risk Management |
| (1) | Financial risk management |
The Company is exposed to market risk, credit risk and liquidity risk. Market risk refers to the risk of fluctuations in market variables such as foreign exchange rates, interest rates and the prices of financial instruments. The Company has established a risk management framework to monitor and manage these risks on an ongoing basis.
The Company’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 – 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 arises from forecasted transactions and recognized assets and liabilities which are denominated in a currency other than the functional currency of the Company.
The Company has entered into cross currency swaps to hedge against currency risk related to foreign currency debentures.
As of March 31, 2026, 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) | Profit before income tax | Equity | ||||||||||||||
| If increased by 10% | If decreased by 10% | If increased by 10% | If decreased by 10% | |||||||||||||
| USD |
(4,680 | ) | (3,443 | ) | ||||||||||||
| EUR |
509 | (509 | ) | 374 | (374 | ) | ||||||||||
| Others |
27 | (27 | ) | 20 | (20 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| (5,216 | ) | (3,837 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
33
Table of Contents
SK TELECOM CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
March 31, 2026 and 2025
| 28. | Financial Risk Management, Continued |
| (1) | Financial risk management, Continued |
| 1) | Market risk, Continued |
| (ii) | Interest rate risk |
The Company is exposed to interest rate risk arising from its borrowings, debentures and long-term payables – other. As the Company’s interest-bearing assets are predominantly fixed-rate instruments, changes in market interest rates do not have a significant impact on the Company’s revenue or operating cash flows.
The Company conducts various analyses to manage interest rate risk and optimize its financing structure. To mitigate the impact of interest rate fluctuations, the Company employs a range of strategies, including refinancing, renewing existing borrowings, alternative financing arrangements and hedging.
As of March 31, 2026, the par values of floating-rate borrowings and debentures amount to W200,000 million and
W454,020 million, respectively. The Company has entered into interest rate swaps to hedge interest rate risk related to the floating-rate borrowings and debentures. Therefore, changes in interest rates on the underlying
floating-rate borrowings and debentures would not have affected profit before income tax for the three-month period ended March 31, 2026.
As of March 31, 2026, the par values of floating-rate long-term payables – other amount to W182,775 million.
Assuming all other variables remain constant, the impact of changes in the interest rate of long-term payables – other by 1%p on profit before income tax and equity for the three-month period ended March 31, 2026 is as follows:
| (In millions of won) | Profit before income tax | Equity | ||||||||||||||
| If increased by 1%p | If decreased by 1%p | If increased by 1%p | If decreased by 1%p | |||||||||||||
| 457 | 336 | |||||||||||||||
| (iii) | Price fluctuations risk |
As of March 31, 2026, the Company holds equity instruments that are traded in an active market and is therefore exposed to the risk of fluctuations in market prices. Assuming all other variables remain constant, the impact of changes in the per-share stock price of the equity securities on profit before income tax and equity for the three-month period ended March 31, 2026 is as follows:
| (In millions of won) | Profit before income tax | Equity | ||||||||||||||
| If increased by 10%p | If decreased by 10%p | If increased by 10%p | If decreased by 10%p | |||||||||||||
| — | (72,862 | ) | ||||||||||||||
34
Table of Contents
SK TELECOM CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
March 31, 2026 and 2025
| 28. | Financial Risk Management, Continued |
| (1) | Financial risk management, Continued |
| 2) | Credit risk |
Credit risk refers to the risk that the Company will suffer financial losses due to the failure of the customer or counterparty to fulfill their contractual obligations on the financial instrument. 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.
The Company recognizes a loss allowance for accounts receivable – trade. The allowance consists of a specific component for individually significant exposures and a collective component for groups of similar assets where credit losses are expected to occur. The collective loss allowance is determined based on historical data of collection statistics for similar financial assets. Also, the Company’s credit risk can arise from transactions with financial institutions related to its cash and cash equivalents, financial instruments and derivatives. To minimize such risk, the Company has a policy to deal only with financial institutions with high credit ratings.
The Company’s maximum exposure to credit risk is equal to each financial asset’s carrying amount as of March 31, 2026.
35
Table of Contents
SK TELECOM CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
March 31, 2026 and 2025
| 28. | Financial Risk Management, Continued |
| (1) | Financial risk management, Continued |
| 3) | Liquidity risk |
Liquidity risk is the risk that the Company encounters difficulty in meeting the obligations of the financial liabilities. 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.
The Company’s accounts payable – other and others includes amounts settled through
supplier finance arrangements. The Company pays the amounts within the normal operating cycle, and no collateral is provided in connection with the agreements. As the payment terms have not been substantially modified, the related balances are
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 amount to
W306,772 million as of March 31, 2026, which equals to the amounts already received by the suppliers from the finance provider.
As of March 31, 2026, periods in which cash flows from cash flow hedge derivatives are expected to occur are as follows:
| (In millions of won) | Carrying amount |
Contractual cash flows |
Less than 1 year |
1 – 5 years |
||||||||||||
| Assets |
222,447 | 18,961 | 203,486 | |||||||||||||
| Liabilities |
(225 | ) | (225 | ) | (225 | ) | — | |||||||||
| (2) | Capital management |
The Company manages its capital to ensure its ability to continue as a going concern while seeking to maximize shareholder returns through the optimization of its debt and equity structure. The overall capital management strategy of the Company is the same as that for the year ended December 31, 2025.
The Company monitors its debt-to-equity ratio as a key indicator of capital management. This ratio is calculated as total liabilities divided by total equity, based on the amounts presented in the separate financial statements.
Debt-to-equity ratio as of March 31, 2026 and December 31, 2025 are as follows:
| (In millions of won) | March 31, 2026 | December 31, 2025 | ||||||
| Total liabilities |
13,157,686 | |||||||
| Total equity |
12,368,941 | 11,991,050 | ||||||
|
|
|
|
|
|||||
| Debt-to-equity ratios |
100.02 | % | 109.73 | % | ||||
|
|
|
|
|
|||||
36
Table of Contents
SK TELECOM CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
March 31, 2026 and 2025
| 28. | Financial Risk Management, Continued |
| (3) | Fair value |
| 1) | Fair value and carrying amount of financial assets and liabilities, including fair value hierarchy as of March 31, 2026 and December 31, 2025 are as follows: |
| (In millions of won) | March 31, 2026 | |||||||||||||||||||
| Carrying amount |
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
| Financial assets that are measured at fair value: |
||||||||||||||||||||
| FVTPL |
— | 625,873 | 54,477 | 680,350 | ||||||||||||||||
| Derivative hedging instruments |
212,469 | — | 212,469 | — | 212,469 | |||||||||||||||
| FVOCI |
2,421,286 | 989,970 | — | 1,431,316 | 2,421,286 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| 989,970 | 838,342 | 1,485,793 | 3,314,105 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Financial liabilities that are measured at fair value: |
||||||||||||||||||||
| FVTPL |
— | 26 | 555 | 581 | ||||||||||||||||
| Derivative hedging instruments |
225 | — | 225 | — | 225 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| — | 251 | 555 | 806 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Financial liabilities that are not measured at fair value: |
||||||||||||||||||||
| Borrowings |
— | 626,706 | — | 626,706 | ||||||||||||||||
| Debentures |
5,857,288 | — | 5,662,658 | — | 5,662,658 | |||||||||||||||
| Long-term payables – other |
179,989 | — | 178,796 | — | 178,796 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| — | 6,468,160 | — | 6,468,160 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| (In millions of won) | December 31, 2025 | |||||||||||||||||||
| Carrying amount |
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
| Financial assets that are measured at fair value: |
||||||||||||||||||||
| FVTPL |
— | 539,963 | 59,847 | 599,810 | ||||||||||||||||
| Derivative hedging instruments |
156,256 | — | 156,256 | — | 156,256 | |||||||||||||||
| FVOCI |
2,337,149 | 912,600 | — | 1,424,549 | 2,337,149 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| 912,600 | 696,219 | 1,484,396 | 3,093,215 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Financial liabilities that are measured at fair value: |
||||||||||||||||||||
| FVTPL |
— | 26 | 555 | 581 | ||||||||||||||||
| Derivative hedging instruments |
621 | — | 621 | — | 621 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| — | 647 | 555 | 1,202 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Financial liabilities that are not measured at fair value: |
||||||||||||||||||||
| Borrowings |
— | 631,116 | — | 631,116 | ||||||||||||||||
| Debentures |
6,081,340 | — | 6,013,856 | — | 6,013,856 | |||||||||||||||
| Long-term payables – other |
547,961 | — | 553,807 | — | 553,807 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| — | 7,198,779 | — | 7,198,779 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
37
Table of Contents
SK TELECOM CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
March 31, 2026 and 2025
| 28. | Financial Risk Management, Continued |
| (3) | Fair value, Continued |
1) Fair value and carrying amount of financial assets and liabilities, including fair value hierarchy as of March 31, 2026 and December 31, 2025 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 valuation methods such as 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 March 31, 2026 are as follows:
| Interest rate | ||
| Derivative instruments |
2.06% ~ 4.20% | |
| Borrowings and debentures |
3.49% ~ 3.97% | |
| Long-term payables – other |
3.43% ~ 3.56% |
| 2) | There have been no transfers between Level 1 and Level 2 for the three-month period ended March 31, 2026. The changes in financial assets and liabilities classified as Level 3 for the three-month period ended March 31, 2026 are as follows: |
| (In millions of won) | ||||||||||||||||||||||||
| Balance as of January 1, 2026 |
Loss | OCI | Disposal | Transfer(*) | Balance as of March 31, 2026 |
|||||||||||||||||||
| Financial assets: |
| |||||||||||||||||||||||
| FVTPL |
(111 | ) | — | (5,259 | ) | — | 54,477 | |||||||||||||||||
| FVOCI |
1,424,549 | — | 15,024 | (8,640 | ) | 383 | 1,431,316 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| (111 | ) | 15,024 | (13,899 | ) | 383 | 1,485,793 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Financial liabilities: |
||||||||||||||||||||||||
| FVTPL |
— | — | — | — | (555 | ) | ||||||||||||||||||
| (*) | Transfer includes amounts transferred between levels in the fair value hierarchy due to changes in the availability of observable market inputs for the financial instruments. |
38
Table of Contents
SK TELECOM CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
March 31, 2026 and 2025
| 28. | Financial Risk Management, Continued |
| (4) | Enforceable master netting agreement or similar agreement |
Carrying amounts of financial instruments recognized to which offset agreements are applicable as of March 31, 2026 and December 31, 2025 are as follows:
| (In millions of won) | March 31, 2026 | |||||||||||
| Gross financial instruments recognized |
Amount offset | Net financial instruments presented on the condensed separate interim statement of financial position |
||||||||||
| Financial assets: |
||||||||||||
| Accounts receivable – trade and others |
(60,042 | ) | — | |||||||||
| Financial liabilities: |
||||||||||||
| Accounts payable – other and others |
(60,042 | ) | 2,395 | |||||||||
| (In millions of won) | December 31, 2025 | |||||||||||
| Gross financial instruments recognized |
Amount offset | Net financial instruments presented on the separate statement of financial position |
||||||||||
| Financial assets: |
||||||||||||
| Accounts receivable – trade and others |
(63,777 | ) | — | |||||||||
| Financial liabilities: |
||||||||||||
| Accounts payable – other and others |
(63,777 | ) | 2,242 | |||||||||
39
Table of Contents
SK TELECOM CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
March 31, 2026 and 2025
| 29. | Transactions with Related Parties |
| (1) | List of related parties |
| Relationship |
Company | |
| Ultimate controlling entity | SK Inc. | |
| Subsidiaries | SK Broadband Co., Ltd. and 18 others | |
| Joint venture | UTC Kakao-SK Telecom ESG Fund | |
| Associates(*) | SK China Company Ltd. and 41 others | |
| Others | The ultimate controlling entity’s subsidiaries, associates and others |
| (*) | Associates include investments that are measured in accordance with KIFRS 1109 in which the Company has significant influence but is determined to have no substantive access to returns associated with its ownership interest. |
As of March 31, 2026, the Company is part of SK Group, a conglomerate as defined in the Monopoly Regulation and Fair Trade Act of the Republic of Korea. All other entities within SK Group are therefore considered related parties of the Company.
40
Table of Contents
SK TELECOM CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
March 31, 2026 and 2025
| 29. | Transactions with Related Parties, Continued |
| (2) | As of March 31, 2026, subsidiaries of the Company are as follows: |
| Subsidiary |
Ownership percentage(%)(*1) |
Primary business | ||||||
| Subsidiaries owned by the Company |
SK Telink Co., Ltd. |
100.0 | International telecommunication and Mobile Virtual Network Operator service | |||||
| SK Broadband Co., Ltd. |
99.1 | 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) | ||||||
| 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 | Investment (Holdings company) | ||||||
| Astra AI Infra LLC |
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 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 | |||||
| Subsidiary owned by Atlas Investment |
Forest AI Investment |
100.0 | Investment | |||||
| Other(*2) |
SK Telecom Innovation Fund, L.P. |
100.0 | Investment | |||||
| (*1) | The ownership interest represents direct ownership interest in subsidiaries either by the Company or subsidiaries of the Company. |
| (*2) | Other is owned by Atlas Investment and another subsidiary of the Company. |
41
Table of Contents
SK TELECOM CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
March 31, 2026 and 2025
| 29. | Transactions with Related Parties, Continued |
| (3) | Compensation for the key management |
The Company considers registered directors who have substantial roles and responsibilities in the planning, operations and oversight of relevant controls of the business to be key management personnel. The compensations given to such key management for the three-month periods ended March 31, 2026 and 2025 are as follows:
| (In millions of won) | ||||||||
| For the three-month period ended | ||||||||
| March 31, 2026 | March 31, 2025 | |||||||
| Salaries |
4,046 | |||||||
| Defined benefit plan expenses |
138 | 363 | ||||||
| Share option |
2,325 | 37 | ||||||
|
|
|
|
|
|||||
| 4,446 | ||||||||
|
|
|
|
|
|||||
Compensations for the key management include salaries, non-monetary benefits, defined benefit relating to the pension plan, and share-based compensation expenses.
42
Table of Contents
SK TELECOM CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
March 31, 2026 and 2025
| 29. | Transactions with Related Parties, Continued |
| (4) | Transactions with the related parties for the three-month periods ended March 31, 2026 and 2025 are as follows: |
| (In millions of won) | For the three-month period ended March 31, 2026 | |||||||||||||
| Scope |
Company |
Operating revenue and others |
Operating expenses and others(*1) |
Acquisition of property and equipment and others |
||||||||||
| Ultimate controlling entity |
SK Inc. | 78,131 | 3,197 | |||||||||||
|
|
|
|
|
|
|
|||||||||
| Subsidiaries |
SK Broadband Co., Ltd. |
46,154 | 159,715 | — | ||||||||||
| PS&Marketing Corporation(*2) |
1,433 | 329,002 | 12 | |||||||||||
| SK O&S Co., Ltd.(*3) |
4,179 | 67,725 | 1,395 | |||||||||||
| SK Telink Co., Ltd.(*4) |
78,739 | 4,653 | — | |||||||||||
| SERVICE ACE Co., Ltd.(*5) |
3,968 | 27,802 | — | |||||||||||
| SERVICE TOP Co., Ltd.(*6) |
3,561 | 26,296 | — | |||||||||||
| Others(*7) |
4,941 | 2,823 | — | |||||||||||
|
|
|
|
|
|
|
|||||||||
| 142,975 | 618,016 | 1,407 | ||||||||||||
|
|
|
|
|
|
|
|||||||||
| Associates |
SK m&service Co., Ltd. |
160 | 6,634 | 45 | ||||||||||
| Others |
— | 422 | — | |||||||||||
|
|
|
|
|
|
|
|||||||||
| 160 | 7,056 | 45 | ||||||||||||
|
|
|
|
|
|
|
|||||||||
| Others |
SK Innovation Co., Ltd. |
2,226 | 3,282 | — | ||||||||||
| SK Networks Co., Ltd. |
219 | 2,511 | — | |||||||||||
| SK Networks Service Co., Ltd. |
133 | 8,020 | — | |||||||||||
| SK Energy Co., Ltd. |
310 | 50 | — | |||||||||||
| Content Wavve Corp. |
63 | 11,582 | — | |||||||||||
| Happy Narae Co., Ltd. |
— | 1,245 | 47 | |||||||||||
| SK Shieldus Co., Ltd. |
11,366 | 24,775 | 60 | |||||||||||
| Eleven Street Co., Ltd. |
410 | 7,976 | — | |||||||||||
| SK Planet Co., Ltd. |
614 | 16,003 | 95 | |||||||||||
| SK hynix Inc. |
15,389 | 170 | — | |||||||||||
| Tmap Mobility Co., Ltd. |
1,546 | 1,032 | — | |||||||||||
| Dreamus Company |
198 | 11,232 | — | |||||||||||
| One Store Co., Ltd. |
2,782 | 6 | — | |||||||||||
| UNA Engineering Inc. |
— | 1,387 | 185 | |||||||||||
| SK REIT Co., Ltd. |
— | 3,368 | — | |||||||||||
| Others |
5,977 | 3,391 | — | |||||||||||
|
|
|
|
|
|
|
|||||||||
| 41,233 | 96,030 | 387 | ||||||||||||
|
|
|
|
|
|
|
|||||||||
| 799,233 | 5,036 | |||||||||||||
|
|
|
|
|
|
|
|||||||||
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Table of Contents
SK TELECOM CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
March 31, 2026 and 2025
| 29. | Transactions with Related Parties, Continued |
| (4) | Transactions with the related parties for the three-month periods ended March 31, 2026 and 2025 are as follows, Continued: |
| (*1) | Operating expenses and others include lease payments by the Company. |
| (*2) | Operating expenses and others include |
| (*3) | Operating revenue and others include |
| (*4) | Operating revenue and others include |
| (*5) | Operating revenue and others include |
| (*6) | Operating revenue and others include |
| (*7) | Operating revenue and others include |
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Table of Contents
SK TELECOM CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
March 31, 2026 and 2025
| 29. | Transactions with Related Parties, Continued |
| (4) | Transactions with the related parties for the three-month periods ended March 31, 2026 and 2025 are as follows, Continued: |
| (In millions of won) | For the three-month period ended March 31, 2025 | |||||||||||||
| Scope |
Company |
Operating revenue and others |
Operating expenses and others(*1) |
Acquisition of property and equipment and others |
||||||||||
| Ultimate controlling entity |
SK Inc.(*2) | 151,623 | 3,016 | |||||||||||
|
|
|
|
|
|
|
|||||||||
| Subsidiaries |
SK Broadband Co., Ltd.(*3) | 193,465 | 152,060 | — | ||||||||||
| PS&Marketing Corporation(*4) | 1,613 | 323,337 | — | |||||||||||
| SK O&S Co., Ltd.(*5) | 4,833 | 66,830 | 1,428 | |||||||||||
| SK Telink Co., Ltd.(*6) | 50,729 | 4,190 | — | |||||||||||
| SERVICE ACE Co., Ltd. | 3,159 | 31,232 | — | |||||||||||
| SERVICE TOP Co., Ltd. | 1,531 | 30,021 | — | |||||||||||
| Others(*7) | 4,607 | 9,408 | — | |||||||||||
|
|
|
|
|
|
|
|||||||||
| 259,937 | 617,078 | 1,428 | ||||||||||||
|
|
|
|
|
|
|
|||||||||
| Associates |
F&U Credit information Co., Ltd. | 191 | 11,104 | — | ||||||||||
| Others | 401 | 3,624 | 233 | |||||||||||
|
|
|
|
|
|
|
|||||||||
| 592 | 14,728 | 233 | ||||||||||||
|
|
|
|
|
|
|
|||||||||
| Others |
SK Innovation Co., Ltd. | 991 | 3,233 | — | ||||||||||
| SK Networks Co., Ltd. | 235 | 2,667 | — | |||||||||||
| SK Networks Service Co., Ltd. | 135 | 8,844 | — | |||||||||||
| SK Energy Co., Ltd. | 314 | 46 | — | |||||||||||
| Content Wavve Corp. | 4,399 | 15,810 | — | |||||||||||
| Happy Narae Co., Ltd. | 37 | 900 | 90 | |||||||||||
| SK Shieldus Co., Ltd. | 11,585 | 25,511 | 139 | |||||||||||
| Eleven Street Co., Ltd. | 1,731 | 8,399 | — | |||||||||||
| SK Planet Co., Ltd. | 1,445 | 17,376 | 80 | |||||||||||
| SK hynix Inc. | 10,720 | 224 | — | |||||||||||
| Tmap Mobility Co., Ltd. | 4,293 | 1,055 | — | |||||||||||
| Dreamus Company | 1,151 | 13,818 | — | |||||||||||
| One Store Co., Ltd. | 3,230 | 10 | — | |||||||||||
| UNA Engineering Inc. |
— | 968 | 158 | |||||||||||
| Others | 5,675 | 15,978 | — | |||||||||||
|
|
|
|
|
|
|
|||||||||
| 45,941 | 114,839 | 467 | ||||||||||||
|
|
|
|
|
|
|
|||||||||
| 898,268 | 5,144 | |||||||||||||
|
|
|
|
|
|
|
|||||||||
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Table of Contents
SK TELECOM CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
March 31, 2026 and 2025
| 29. | Transactions with Related Parties, Continued |
| (4) | Transactions with the related parties for the three-month periods ended March 31, 2026 and 2025 are as follows, Continued: |
| (*1) | Operating expenses and others include lease payments by the Company. |
| (*2) | Operating expenses and others include |
| (*3) | Operating revenue and others include |
| (*4) | Operating expenses and others include |
| (*5) | Operating revenue and others include |
| (*6) | Operating revenue and others include |
| (*7) | Operating revenue and others include |
46
Table of Contents
SK TELECOM CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
March 31, 2026 and 2025
| 29. | Transactions with Related Parties, Continued |
| (5) | Account balances with the related parties as of March 31, 2026 and December 31, 2025 are as follows: |
| (In millions of won) | March 31, 2026 | |||||||||
| Receivables | Payables | |||||||||
| Scope |
Company |
Accounts receivable – trade, etc. |
Accounts payable – other, etc. |
|||||||
| Ultimate controlling entity |
SK Inc. | 64,944 | ||||||||
|
|
|
|
|
|||||||
| Subsidiaries |
SK Broadband Co., Ltd. | 120,301 | 196,490 | |||||||
| PS&Marketing Corporation | 838 | 55,897 | ||||||||
| SK O&S Co., Ltd. | 3,545 | 27,463 | ||||||||
| SK Telink Co., Ltd. | 74,634 | 6,656 | ||||||||
| SERVICE ACE Co., Ltd. | 4,078 | 13,094 | ||||||||
| SERVICE TOP Co., Ltd. | 3,743 | 14,480 | ||||||||
| Others | 147 | 2,733 | ||||||||
|
|
|
|
|
|||||||
| 207,286 | 316,813 | |||||||||
|
|
|
|
|
|||||||
| Associates |
SK m&service Co., Ltd. | 1,775 | 32,358 | |||||||
| Others | — | 1,806 | ||||||||
|
|
|
|
|
|||||||
| 1,775 | 34,164 | |||||||||
|
|
|
|
|
|||||||
| Others |
SK hynix Inc. | 13,246 | 81 | |||||||
| SK Planet Co., Ltd. | 156 | 890 | ||||||||
| Eleven Street Co., Ltd. | 15,679 | 5,038 | ||||||||
| One Store Co., Ltd. | 545 | 10,328 | ||||||||
| SK Shieldus Co., Ltd. | 11,266 | 12,203 | ||||||||
| SK Innovation Co., Ltd. | 3,559 | 19,052 | ||||||||
| SK Networks Co., Ltd. | 163 | 24,996 | ||||||||
| SK Networks Service Co., Ltd. | 2,065 | 5,644 | ||||||||
| Incross Co., Ltd. |
1,006 | 3,811 | ||||||||
| UNA Engineering Inc. | — | 79 | ||||||||
| Happy Narae Co., Ltd. | — | 845 | ||||||||
| Content Wavve Corp. | — | 11,579 | ||||||||
| SK REIT Co., Ltd. | 7,890 | 57,389 | ||||||||
| Others | 5,746 | 3,257 | ||||||||
|
|
|
|
|
|||||||
| 61,321 | 155,192 | |||||||||
|
|
|
|
|
|||||||
| 571,113 | ||||||||||
|
|
|
|
|
|||||||
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Table of Contents
SK TELECOM CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
March 31, 2026 and 2025
| 29. | Transactions with Related Parties, Continued |
| (5) | Account balances with the related parties as of March 31, 2026 and December 31, 2025 are as follows, Continued: |
| (In millions of won) | Company |
December 31, 2025 | ||||||||
| Receivables | Payables | |||||||||
| Scope |
Accounts receivable – trade, etc. |
Accounts payable – other, etc. |
||||||||
| Ultimate controlling entity |
SK Inc. | 163,338 | ||||||||
|
|
|
|
|
|||||||
| Subsidiaries |
SK Broadband Co., Ltd. | 159,296 | 235,104 | |||||||
| PS&Marketing Corporation | 873 | 57,114 | ||||||||
| SK O&S Co., Ltd. | 7 | 40,377 | ||||||||
| SK Telink Co., Ltd. | 19,531 | 6,291 | ||||||||
| SERVICE ACE Co., Ltd. | 341 | 19,545 | ||||||||
| SERVICE TOP Co., Ltd. | 1,053 | 21,034 | ||||||||
| Others | 206 | 4,668 | ||||||||
|
|
|
|
|
|||||||
| 181,307 | 384,133 | |||||||||
|
|
|
|
|
|||||||
| Associates |
SK m&service Co., Ltd. | 448 | 28,430 | |||||||
| Others | — | 1,788 | ||||||||
|
|
|
|
|
|||||||
| 448 | 30,218 | |||||||||
|
|
|
|
|
|||||||
| Others |
SK hynix Inc. | 13,232 | 291 | |||||||
| SK Planet Co., Ltd. | 154 | 1,285 | ||||||||
| Eleven Street Co., Ltd. | 14,115 | 1,709 | ||||||||
| One Store Co., Ltd. | 537 | 10,403 | ||||||||
| SK Shieldus Co., Ltd. | 14,256 | 15,146 | ||||||||
| SK Innovation Co., Ltd. | 4,987 | 21,419 | ||||||||
| SK Networks Co., Ltd. | 199 | 27,698 | ||||||||
| SK Networks Service Co., Ltd. | 2,159 | 5,726 | ||||||||
| Incross Co., Ltd. |
1,557 | 25,416 | ||||||||
| UNA Engineering Inc. | — | 3,611 | ||||||||
| Happy Narae Co., Ltd. | 8 | 653 | ||||||||
| Content Wavve Corp. | — | 2 | ||||||||
| Dreamus Company | 7 | 1,810 | ||||||||
| SK REIT Co., Ltd. | 7,890 | 61,835 | ||||||||
| Others | 10,995 | 4,307 | ||||||||
|
|
|
|
|
|||||||
| 70,096 | 181,311 | |||||||||
|
|
|
|
|
|||||||
| 759,000 | ||||||||||
|
|
|
|
|
|||||||
48
Table of Contents
SK TELECOM CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
March 31, 2026 and 2025
| 29. | Transactions with Related Parties, Continued |
| (6) | The Company has granted SK REIT Co., Ltd. the right of first offer regarding the disposal of specified real estates owned by the Company, and the negotiation period is three years from June 30, 2024, the date of agreement. 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. |
| (7) | The details of additional investments and disposal of subsidiaries and associates for the three-month period ended March 31, 2026 are as presented in note 8. |
49
Table of Contents
SK TELECOM CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
March 31, 2026 and 2025
| 30. | Commitments and Contingencies |
| (1) | Accounts receivable from sale of handsets |
Retail stores and authorized dealers of the Company sell handsets to the Company’s subscribers on an installment basis. The Company has entered into comprehensive agreements with these retail stores and authorized dealers to purchase the related accounts receivable from handset sales 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
WW
| (2) | Legal claims and litigations |
As of March 31, 2026, the Company is involved in various legal claims and litigations. The provision recognized in relation to these claims and litigations is immaterial. For legal claims and litigations for which no provision has been recognized, management does not believe the Company has a present obligation, nor is any such matter expected to have a material effect on the Company’s financial position or operating results in the event an outflow of resources becomes necessary.
| (3) | Obligation relating to spin-off |
The Company completed 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. In accordance with Article 530-9 (1) of the Korean Commercial Act, the Company and SK Square Co., Ltd., the spin-off company, are jointly and severally liable for liabilities incurred by the Company prior to the spin-off.
| (4) | According to the covenants associated with the Company’s bond issuances and borrowings, the Company is required to maintain certain financial ratios, including the debt ratio, within specified threshold. The funds obtained must be used for specified purposes, and regular reporting to lenders is required. Additionally, the contracts include clauses that restrict the provision of additional collateral over the Company’s assets and limit disposal of certain assets. |
| (5) | The Company entered into a contract with SK Inc. for the use of Amazon Web Services (“AWS”). In accordance with the contract, the Company is entitled to receive AWS services for a ten-year period beginning in July 2025, with a total contract value of USD 800,000,000. |
| (6) | Pursuant to a resolution of the Board of Directors on March 26, 2026, the Company entered into a share
swap agreement with SK Broadband Co., Ltd. through a small-scale and simplified share swap on March 27, 2026. In accordance with the agreement, on the share swap date scheduled for May 29, 2026, the Company will acquire the common shares
of SK Broadband Co., Ltd. held by shareholders other than the Company and will pay cash consideration of |
50
Table of Contents
SK TELECOM CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
March 31, 2026 and 2025
| 31. | Statements of Cash Flows |
| (1) | Adjustments for income and expenses from operating activities for the three-month periods ended March 31, 2026 and 2025 are as follows: |
| (In millions of won) | For the three-month period ended | |||||||
| March 31, 2026 | March 31, 2025 | |||||||
| Gain on foreign currency translations |
(620 | ) | ||||||
| Interest income |
(7,441 | ) | (10,863 | ) | ||||
| Dividends |
(80,969 | ) | (187,068 | ) | ||||
| Gain relating to investments in subsidiaries, associates and joint ventures, net |
(4,600 | ) | (2,298 | ) | ||||
| Gain relating to financial instruments at FVTPL |
(558 | ) | (4 | ) | ||||
| Gain on disposal of property and equipment and intangible assets |
(7,318 | ) | (5,504 | ) | ||||
| Other income |
— | (1,072 | ) | |||||
| Loss on foreign currency translations |
403 | 386 | ||||||
| Bad debt for accounts receivable – trade |
7,650 | 9,305 | ||||||
| Bad debt for accounts receivable – other |
1,206 | 829 | ||||||
| Loss relating to investments in subsidiaries, associates and joint ventures, net |
1,124 | 939 | ||||||
| Loss relating to financial instruments at FVTPL |
3,038 | 153 | ||||||
| Depreciation and amortization |
648,642 | 660,905 | ||||||
| Loss on disposal of property and equipment and intangible assets |
789 | 1,707 | ||||||
| Impairment loss on property and equipment and intangible assets |
— | 359 | ||||||
| Loss on sale of accounts receivable – other |
3,777 | 4,943 | ||||||
| Interest expenses |
66,615 | 75,804 | ||||||
| Expense related to defined benefit plan |
10,210 | 11,828 | ||||||
| Share option expenses (reversal) |
5,412 | (248 | ) | |||||
| Income tax expense |
101,250 | 126,422 | ||||||
| Other expenses |
3,759 | 3,325 | ||||||
|
|
|
|
|
|||||
| 689,228 | ||||||||
|
|
|
|
|
|||||
51
Table of Contents
SK TELECOM CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
March 31, 2026 and 2025
| 31. | Statements of Cash Flows, Continued |
| (2) | Changes in assets and liabilities from operating activities for the three-month periods ended March 31, 2026 and 2025 are as follows: |
| (In millions of won) | For the three-month period ended | |||||||
| March 31, 2026 | March 31, 2025 | |||||||
| Accounts receivable – trade |
(35,508 | ) | ||||||
| Accounts receivable – other |
(167,023 | ) | (65,576 | ) | ||||
| Advanced payments |
6,871 | 357 | ||||||
| Prepaid expenses |
(132,609 | ) | (19,561 | ) | ||||
| Inventories |
(6,792 | ) | 1,083 | |||||
| Long-term accounts receivable – other |
(6,669 | ) | (3,496 | ) | ||||
| Guarantee deposits |
7,072 | 9,343 | ||||||
| Contract assets |
1,201 | 562 | ||||||
| Accounts payable – other |
(106,551 | ) | (67,774 | ) | ||||
| Withholdings |
110,807 | 135,737 | ||||||
| Deposits received |
524 | 435 | ||||||
| Accrued expenses |
(13,993 | ) | (166,455 | ) | ||||
| Provisions |
(3,630 | ) | — | |||||
| Plan assets |
46,153 | 25,370 | ||||||
| Retirement benefits payment |
(25,009 | ) | (24,185 | ) | ||||
| Contract liabilities |
(18,474 | ) | 14,272 | |||||
| Others |
(2,410 | ) | (1,974 | ) | ||||
|
|
|
|
|
|||||
| (197,370 | ) | |||||||
|
|
|
|
|
|||||
| (3) | Material non-cash transactions for the three-month periods ended March 31, 2026 and 2025 are as follows: |
| (In millions of won) | For the three-month period ended | |||||||
| March 31, 2026 | March 31, 2025 | |||||||
| Decrease in accounts payable – other relating to the acquisition of property and equipment and intangible assets |
(343,176 | ) | ||||||
| Increase of right-of-use assets |
48,811 | 40,964 | ||||||
| Transfer from investment property to non-current assets held for sale |
12,713 | — | ||||||
52
Table of Contents
SK TELECOM CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
March 31, 2026 and 2025
| 32. | Emissions Liabilities |
| (1) | The quantities of emissions rights allocated free of charge for each implementation year as of March 31, 2026 are as follows: |
| (In tCO2-eQ) | Quantities allocated in 2026 |
Quantities allocated in 2027 |
Quantities allocated in 2028 |
Quantities allocated in 2029 |
Quantities allocated in 2030 |
Total | ||||||||||||||||||
| Emissions rights allocated free of charge(*) |
918,993 | 909,994 | 899,086 | 888,166 | 877,264 | 4,493,503 | ||||||||||||||||||
| (*) | Finalized changes in allocated quantities, including additional allocations, cancellations and other adjustments, have been reflected. |
| (2) | Changes in quantities of emissions rights held by the Company are as follows: |
| (In tCO2-eQ) | Quantities allocated in 2024 |
Quantities allocated in 2025 |
Quantities allocated in the three- month period ended March 31, 2026(*) |
Total | ||||||||||||
| Beginning |
414,356 | 517,280 | — | 931,636 | ||||||||||||
| Allocation at no cost |
1,332,500 | 1,021,864 | 918,993 | 3,273,357 | ||||||||||||
| Sale |
(63,058 | ) | (293,002 | ) | — | (356,060 | ) | |||||||||
| Surrender or shall be surrendered |
(1,166,518 | ) | (1,246,142 | ) | (1,276,396 | ) | (3,689,056 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Ending |
517,280 | — | (357,403 | ) | 159,877 | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| (*) | Changes for the three-month period ended March 31, 2026 are estimated quantities, and additionally allocated and surrendered or shall be surrendered quantities will be fixed in the future. |
| (3) | As of March 31, 2026, the estimated annual greenhouse gas emissions quantities of the Company are 1,276,396 tCO2-eQ. |
53
Table of Contents
SK TELECOM CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
March 31, 2026 and 2025
| 33. | Non-current Assets Held for Sale |
Non-current assets held for sale as of March 31, 2026 and December 31, 2025 are as follows:
| (In millions of won) | March 31, 2026 |
December 31, 2025 |
||||||||
| Investment in a subsidiary |
SK stoa Co., Ltd. |
40,081 | ||||||||
| Property and equipment and investment property |
Land, buildings and others |
13,229 | — | |||||||
|
|
|
|
|
|||||||
| 40,081 | ||||||||||
|
|
|
|
|
|||||||
34. Subsequent Events
The Board of Directors of the Company resolved to pay interim dividends at the Board of Directors’ meeting held on April 27, 2026, and the details are as follows:
| Classification |
Description | |
| Interim dividend amount | ||
| Dividend rate | 0.84% | |
| Record date | May 31, 2026 | |
| Date of distribution | Pursuant to Article 165-12 (3) of Capital Market and Financial Investment Business Act, the Company shall distribute dividends no later than June 18, 2026 |
54