6-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 6-K

REPORT OFFOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

FOR THE MONTH OF December 2024

COMMISSION FILE NUMBER: 333-04906

SK Telecom Co., Ltd.

(Translation of registrant’s name into English)

65, Eulji-ro, Jung-gu

Seoul 04539, Korea

(Address of principal executive office)

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

Form 20-F ☒ Form 40-F ☐

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

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

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

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

QUARTERLY BUSINESS REPORT

(From January 1, 2024 to September 30, 2024)

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

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

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

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

I.	COMPANY OVERVIEW

Omitted in quarterly reports in accordance with applicable Korean disclosure rules. For more information, please refer to the Company’s semi-annual business report for the six months ended June 30, 2024.

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.<br> <br>(“PS&<br>Marketing”)	Sale of fixed-line and wireless telecommunications products through wholesale, retail and online distribution channels
	SK O&S Co., Ltd.<br> <br>(“SK<br>O&S”)	Maintenance of switching stations
	Service Ace Co., Ltd.<br> <br>(“Service<br>Ace”)	Management and operation of customer centers
Fixed-line	SK Broadband Co., Ltd.<br> <br>(“SK<br>Broadband”)	High-speed Internet, TV, telephone, commercial data and other fixed-line services and management of the transmission system for online<br>digital contents<br> <br>Various media-related services, such as channel management services including video-on-demand services
	Home & Service Co., Ltd.<br><br><br>(“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 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
	SK m&service Co., Ltd. (“SK M&Service”)	Database and online information services
	SAPEON Inc.<br> <br>(“Sapeon”)	Manufacture of non-memory and other electronic integrated circuits
	SAPEON Korea Inc.<br> <br>(“SAPEON<br>Korea”)	Manufacture of non-memory and other electronic integrated circuits

[Wireless Business]

A.	Overview

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

In order to strengthen its sales channels, the Company has been offering a variety of fixed-line and wireless telecommunications convergence products through its subsidiary, PS&Marketing. PS&Marketing provides differentiated service to customers through the establishment of new sales channels and product development.

Through its subsidiary Service Ace, the Company operates customer service centers and provides telemarketing services. Additionally, SK O&S, the Company’s subsidiary responsible for the operation of the Company’s networks, provides customers with quality network services and provides the Company with technological know-how in network operations.

The Company has been maintaining solid profitability based on the stable sales generated from its 5G subscribers, together with efficient investments in, and operation of, its wireless networks and stabilization of market competition. The Company’s 5G wireless services, which recorded 16.58 million subscribers as of September 30, 2024, accounted for more than 70% of the Company’s total number of subscribers. The Company’s strategy is to enhance profitability through stable market operations, while also maintaining revenue by focusing on acquiring and retaining high-ARPU rate plan subscriptions.

In addition, for the nine months ended September 30, 2024, the Company’s enterprise business recorded an increase in revenue of approximately 8% compared to the nine months ended September 30, 2023. Accompanied by stable performance of the Company’s leased line services, for the nine months ended September 30, 2024, the Company’s cloud business recorded a 30% increase in revenue compared to the nine months ended September 30, 2023.

“A. (Adot),” the Company’s Korean language GPT-3 based service, underwent a major update in August 2024. A., which delivers a natural conversational experience and specialized services through various agents with enhanced search and everyday convenience features, recorded a total of over 5.50 million cumulative registered users as of September 30, 2024.

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 mobile telecommunications services). Pursuant to the Telecommunications Business Act, the telecommunications services market can be further classified into basic telecommunications (fixed-line and wireless telecommunications), special category telecommunications (resale of telecommunications equipment, facilities and services) and value-added telecommunications (Internet connection and management, media contents and others).

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

C.	Growth Potential

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

(Unit: in 1,000 persons)


Classification			2023		2022
Number of subscribers	SK Telecom	31,762		31,276		30,452
	Others (KT, LG U+)	37,190		35,643		32,676
	MVNO	17,462		15,851		12,829
	Total	86,413		82,770		75,957
*	Source: Wireless telecommunications service data from the MSIT as of September 30, 2024.<br>
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D.	Domestic and Overseas Market Conditions

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

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

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

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

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

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

(Unit: in percentages)

Classification	As of September 30,2024
			2023		2022
Mobile communication services		46.1		46.7		48.2
*	Source: Wireless telecommunications service data from the MSIT as of September 30, 2024.<br>
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E.	Competitive Strengths
---	---

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

For the nine months ended September 30, 2024, the Company recorded Won 4.53 trillion in operating revenue and Won 0.53 trillion in operating profit on a consolidated basis. The solid performance of wireless and fixed-line telecommunications services and growth in B2B revenue have enabled the Company to continue to improve its operating results compared to the nine months ended September 30, 2023.

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

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

PS&Marketing, a subsidiary of the Company, provides a sales platform for products of the Company and SK Broadband including fixed-line and wireless telecommunications products that address customers’ needs for various

convergence products. PS&Marketing provides differentiated service to clients through the establishment of new sales channels and product development.

[Fixed-line Business]

A.	Overview

For the nine months ended September 30, 2024, SK Broadband recorded Won 3.29 trillion in revenue on a consolidated basis, which represented a 2.9% increase from Won 3.20 trillion for the nine months ended September 30, 2023. Such increase was primarily attributable to the growth of SK Broadband’s media businesses and the growth of its B2B business primarily focused on new data centers.

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

For the nine months ended September, 2024, the media business segment recorded Won 1.44 trillion in revenue, which represented a 0.7% increase compared to the nine months ended September 30, 2023. For the nine months ended September, 2024, the fixed-line business segment recorded Won 1.85 trillion in revenue, which represented a 4.6% increase compared to the nine months ended September 30, 2023.

As of September 30, 2024, SK Broadband recorded 9.62 million pay TV subscribers and 7.11 million high-speed Internet subscribers. In the wireless and fixed-line telecommunications markets, which have entered their maturity phases, SK Broadband has been improving its profitability through high-ARPU rate plans and promotion activities focused on high-tier subscribers.

For the nine months ended September 30, 2024, the data center business recorded a 14% increase in revenue compared to the nine months ended September 30, 2023, primarily due to an increase in SK Broadband’s capacity utilization rate.

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 economic factors including the user population and the level of telecommunications service expenditures in light of the 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 be categorized into terrestrial broadcasting, fixed-line TV broadcasting, satellite broadcasting, programming-providing businesses, and others, in each case pursuant to the Broadcasting Act, as well as Internet multimedia broadcasting business pursuant to the Internet Multimedia Broadcast Services Act.

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

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

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

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

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

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

C.	Growth Potential

(Unit: in persons)

Classification
	2023		2022
Fixed-line Subscribers	High-speed Internet	24,554,199	24,098,164	23,537,333
	Fixed-line telephone	10,519,753	10,973,838	11,621,413
	IPTV	20,925,902	20,870,152	20,384,330
	Cable TV	12,541,500	12,586,391	12,777,073
*	Source: MSIT website.
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**	High-speed Internet and Fixed-line telephone subscribers represent the number of subscribers as of<br>August 31, 2024 while IPTV and Cable TV subscribers represent the average number of subscribers in the second half of 2023.
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D.	Cyclical Nature and Seasonality
---	---

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

E.	Domestic and Overseas Market Conditions

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

(Unit: in percentages)

Classification	As of September 30,2024
			2023		2022
High-speed Internet (including resales)		28.9		28.7		28.5
Fixed-line telephone (including Voice over Internet Protocol (“VoIP”)		18.3		18.0		17.8
IPTV		31.9		31.8		31.1
Cable TV		22.5		22.4		22.2
*	Source: MSIT website.
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**	With respect to Fixed-line telephone, the market share was calculated based on market shares among the<br>Company, KT and LG U+ and is based on the number of landline and IP phone subscribers.
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*******	Market shares of High-speed Internet and Fixed-line telephone represent the market shares as of<br>August 31, 2024 and market shares of IPTV and Cable TV represent the average number of subscribers in the second half of 2023.
---	---

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

[Other Businesses]

A.	Other businesses

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

2. Key Financial Data by Business Line

A.	Assets
				(Unit: in millions of Won and percentages)
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
Classification	As of September 30,<br>2024						As of December 31,
			2023							2022
	Amount			Ratio			Amount				Ratio			Amount			Ratio
Wireless		24,904,271			76	%		25,608,563				77	%		27,078,021			79	%
Fixed-line		6,895,664			21	%		6,825,342				20	%		6,588,076			19	%
Other		967,359			3	%		910,020				3	%		762,028			2	%
Subtotal		32,767,294			100	%		33,343,925				100	%		34,428,124			100	%
Consolidation Adjustment		(3,294,524	)		—			(3,224,698	)			—			(3,119,862	)		—
Total		29,472,770			—			30,119,227				—			31,308,262			—
B.	Revenue
---	---
				(Unit: in millions of Won and percentages)
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
Classification	For the nine months endedSeptember 30,2024						For the year ended December 31,
			2023						2022
	Amount			Ratio			Amount			Ratio			Amount		Ratio
Wireless		9,986,679			74	%		13,123,166			75	%		12,942,316		75	%
Fixed-line		3,041,080			23	%		3,928,020			22	%		3,812,989		22	%
Other		401,329			3	%		557,325			3	%		549,668		3	%
Total		13,429,088			100	%		17,608,511			100	%		17,304,973		100	%
C.	Operating Profit
---	---
				(Unit: in millions of Won and percentages)
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
Classification	For the nine months endedSeptember 30,2024						For the year ended December 31,
			2023							2022
	Amount			Ratio			Amount				Ratio			Amount			Ratio
Wireless		1,355,093			86	%		1,463,934				84	%		1,334,306			81	%
Fixed-line		262,241			17	%		329,072				19	%		311,083			19	%
Other		(39,090	)		(2	)%		(42,771	)			(2	)%		(2,102	)		0	%
Subtotal		1,578,244			100	%		1,750,235				100	%		1,643,287			100	%
Consolidation Adjustment		(8,984	)		—			2,969				—			(31,216	)		—
Total		1,569,260			—			1,753,204				—			1,612,070			—

3. Updates on Major Products and Services

				(Unit: in millions of Won and percentages)
Business	Major Companies	Items	MajorTrademarks	For the nine monthsended September 30,2024						For the year ended December 31,
						2023						2022
				ConsolidatedSalesAmount			Ratio			ConsolidatedSalesAmount			Ratio			ConsolidatedSalesAmount		Ratio
Wireless	SK Telecom Co., Ltd.,<br>PS&Marketing Co., Ltd.,<br><br><br>SK O&S Co., Ltd.,<br> <br>Service Ace Co., Ltd.	Mobile communications service,<br>wireless data service,<br>ICT service	T, 5GX, T Plan and others		9,986,679			74	%		13,123,166			75	%		12,942,316		75	%
Fixed-line	SK Broadband Co., Ltd.,<br><br><br>Home & Service Co., Ltd.,<br> <br>SK Telink Co.,<br>Ltd.	Fixed-line phone,<br>high-speed Internet,<br>data and network lease service	B tv, 00700 international call, 7mobile and others		3,041,080			23	%		3,928,020			22	%		3,812,989		22	%
Other	SK stoa Co., Ltd.,<br> <br>SK M&Service Co., Ltd.,<br>etc.	Commercial retail data broadcasting channel services, database and online information services and others	Stoa ON and others		401,329			3	%		557,325			3	%		549,668		3	%
Total					13,429,088			100	%		17,608,511			100	%		17,304,973		100	%

4. Price Trends for Major Products

[Wireless Business]

As of September 30, 2024, based on the Company’s standard monthly subscription plan, the basic service fee was Won 12,100 (including value-added tax) **** and the usage fee was Won 1.98 per second. Among the 4G-based plans, the “T-Plan Safe 4G” provides 4 GB of data and unlimited voice calls at Won 50,000 per month (including value-added tax). Among the 5G-based plans, the “Basic” plan provides 11 GB of data and unlimited voice calls at Won 49,000 per month (including value-added tax). In June 2023, the Company launched the “5G 0 Youth” plan, which actively reflects the data usage patterns and lifestyle trends of the younger demographics. In March 2024, the Company launched the “Compact” plan, which provides 5G data at Won 39,000 per month (including value-added tax). The Company plans to continue to introduce new services that reach out to different customer segments. The Company provides a variety of other subscription plans catering to subscriber demand, which may be reviewed on the Company’s website at www.tworld.co.kr.

[Fixed-line Business]

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

In April 2024, SK Broadband introduced discounted subscription plans for its direct cable TV service plans. In May 2024, SK Broadband launched a subscription plan that allows users to subscribe to both B tv and Netflix services with a monthly discount of up to Won 2,000. In September 2024, SK Broadband launched a new subscription plan that bundles the B tv and B tv+ monthly subscriptions, allowing users to save up to 61% compared to when subscribing to the plans separately. Additionally, SK Broadband introduced a new set-top box, the “AI 4 Vision,” which is equipped with AI and 4K camera features.

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

5. Investment Status

[Wireless Business]

A.	Investment in Progress
(Unit: in billions of Won)
---	---	---	---	---	---	---
Purpose of<br><br><br>investment	Subject ofinvestment	Investment<br><br><br>period	Expectedinvestment amount	Amount<br>alreadyinvested		Investment effect
Upgrade/ New installation	Network, systems and others	Year ended December 31, 2024	To be determined		728	Upgrades to the existing services and<br>expanded provision of network<br>services including 5G
B.	Future Investment Plan
---	---
Purpose of<br><br><br>investment	Subject of<br><br><br>investment	Expected investment for each year			Investment effect
---	---	---	---	---	---
		2024	2025	2026
Upgrade/ New installation	Network, systems<br> <br>and others	To be determined	To be determined	To be determined	Upgrades to the existing services and<br>expanded provision of network<br>services including 5G

[Fixed-line Business]

A.	Investment in Progress and Future Investment Plan
						(Unit: in billions of Won)
---	---	---	---	---	---	---
Purpose of<br><br><br>investment	Subject of<br><br><br>investment	Investment<br><br><br>period	Amount<br>alreadyinvested		Futureinvestment	Investment effect
Coverage expansion, upgrade of media platform	Network, systems, Internet data center and others	Nine months ended September 30,<br><br><br>2024		438.8	To be determined	Securing subscriber network<br>and equipment; quality and<br>system improvement

6. Revenues

(Unit: in millions of Won)

Business	Sales type	Item
Wireless	Services	Mobile communication, wireless data, information communication		Export	170,244	169,885	140,642
				Domestic	9,816,435	12,953,281	12,801,674
				Subtotal	9,986,679	13,123,166	12,942,316
Fixed-line	Services	Fixed-line, high-speed Internet, data, lease line service		Export	152,627	178,824	183,812
				Domestic	2,888,453	3,749,196	3,629,177
				Subtotal	3,041,080	3,928,020	3,812,989
Other	Services	Commercial retail data broadcasting channel services		Export	—	—	—
				Domestic	401,329	557,325	549,668
				Subtotal	401,329	557,325	549,668
Total				Export	322,871	348,709	324,454
	Domestic		13,106,217		17,259,802	16,980,519
	Total		13,429,088		17,608,511	17,304,973

(Unit: in millions of Won)

For the nine months ended<br><br><br>September 30, 2024
Total sales	11,117,310	3,930,183	448,648		15,496,141	(2,067,053	)	13,429,088
Internal sales	1,130,631	889,103	47,319		2,067,053	(2,067,053	)	—
External sales	9,986,679	3,041,080	401,329		13,429,088	—		13,429,088
Depreciation and amortization	2,015,182	726,338	19,573		2,761,093	(92,845	)	2,668,248
Operating profit (loss)	1,355,093	262,241	(39,090	)	1,578,244	(8,984	)	1,569,260
Finance profit (loss)							****	(319,090	)
Gain from investments in associates and joint ventures							****	24,685
Other non-operating profit(loss)							****	8,781
Profit before income tax							****	1,283,636

7. Derivative Transactions

A.	Current Swap Contract Applying Cash Flow Risk Hedge Accounting

Currency and interest rate swap contracts under cash flow hedge accounting as of September 30, 2024 are as follows: ****

[SK Telecom]

Borrowing<br><br><br>date	Hedged item	Hedged risk	Contract type	Financial institution	Duration ofcontract
July 20, 2007	Fixed rate foreign currency denominated bonds	Foreign currency risk	Cross currency swap	Morgan Stanley and four other banks	July 20, 2007 –<br>July 20, 2027
March 4, 2020	Floating rate foreign currency denominated bonds	Foreign currency and interest rate risks	Cross currency interest rate swap	Citibank	March 4, 2020 –<br>June 4, 2025
June 28, 2023	Fixed rate foreign currency denominated bonds	Foreign currency risk	Cross currency interest rate swap	Citibank, Shinhan Bank, KDB, J.P. Morgan	June 28, 2023 –<br>June 28, 2028

[SK Broadband]

Borrowing<br><br><br>date	Hedged item	Hedged risk	Contract type	Financial institution	Duration ofcontract
June 28, 2023	Non-guaranteed foreign currency denominated bonds (face value of USD 300,000,000)	Foreign currency risk	Cross currency swap	Citibank, Shinhan Bank, KDB, J.P. Morgan	June 28, 2023 –<br>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
Raw material		478		48		23		—
Labor		110,633		140,790		113,297		—
Depreciation		100,097		137,264		135,604		—
Commissioned service		27,571		51,749		46,447		—
Others		54,418		61,992		78,989		—
Total R&D costs		293,197		391,843		374,360		—
Government Subsidies		—		—		—		—
Accounting	Sales and administrative expenses	288,814		369,507		340,864		—
	Development expenses (intangible assets)	4,383		22,334		33,495		—
R&D cost / sales amount ratio (Total R&D costs / Current sales<br>amount×100)		2.18	%	2.23	%	2.16	%	—

10. Other information relating to investment decisions

A.	Brand Management Policies

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

B.	Business-related Intellectual Property

[SK Telecom]

As of September 30, 2024, the registered patents and trademarks held by the Company included 3,249 Korean-registered patents, 1,803 foreign-registered patents and 771 Korean-registered trademarks. The number of registered patents and trademarks is subject to constant change due to the acquisition of new rights, expiration of terms, abandonments and dispositions.

[SK Broadband]

As of September 30, 2024, SK Broadband held 235 Korean-registered patents and 63 foreign-registered patents (including those held jointly with other companies). It also holds 295 Korean-registered trademarks. SK Broadband owns intellectual property rights to its proprietary graphic design of the alphabet “B” representing its brand. The designed alphabet “B” is registered in all business categories for trademarks (total of 45). The number of registered patents and trademarks is subject to continual change due to the acquisition of new rights, expiration of terms, abandonments and dispositions.

C.	Business-related Pollutants and Environmental Protection

[SK Telecom]

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

[SK Broadband]

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

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

III.	FINANCIAL INFORMATION

1. Summary Financial Information (Consolidated and Separate)

A.	Summary Financial Information (Consolidated)

Below is the summary consolidated financial information of the Company as of September 30, 2024, December 31, 2023 and December 31, 2022 and for the nine months ended September 30, 2024 and for the years ended December 31, 2023 and 2022. The Company’s consolidated financial statements as of September 30, 2024 and December 31, 2023 and for the nine months ended September 30, 2024 and 2023, which are prepared in accordance with K-IFRS, are attached hereto.

(Unit: in millions of Won except number of companies)
	As of<br>September 30, 2024			As of<br>December 31, 2023			As of<br>December 31, 2022
Assets
Current Assets		7,371,515			6,585,602			7,219,196
• Cash and Cash Equivalents		1,966,333			1,454,978			1,882,291
• Accounts Receivable – Trade, net		2,132,258			1,978,532			1,970,611
• Accounts Receivable – Other, net		380,592			344,350			479,781
• Others		2,892,332			2,807,742			2,886,513
Non-Current Assets		22,101,255			23,533,625			24,089,066
• Long-Term Investment Securities		1,598,191			1,679,384			1,410,736
• Investments in Associates and Joint Ventures		1,954,143			1,915,012			1,889,289
• Property and Equipment, net		12,116,965			13,006,196			13,322,492
• Goodwill		2,075,009			2,075,009			2,075,009
• Intangible Assets, net		2,347,852			2,861,137			3,324,910
• Others		2,009,095			1,996,887			2,066,630
Total Assets		29,472,770			30,119,227			31,308,262
Liabilities
Current Liabilities		8,127,355			6,993,980			8,046,541
Non-Current Liabilities		8,784,011			10,896,848			11,106,525
Total Liabilities		16,911,366			17,890,828			19,153,066
Equity
Equity Attributable to Owners of the Parent Company		16,911,366			11,389,046			11,318,320
Share Capital		30,493			30,493			30,493
Capital Surplus (Deficit) and Other Capital Adjustments		(11,612,509	)		(11,828,644	)		(11,567,117	)
Retained Earnings		22,920,903			22,799,981			22,463,711
Reserves		403,936			387,216			391,233
Non-controlling Interests		818,581			839,353			836,876
Total Equity		12,561,404			12,228,399			12,155,196
Total Liabilities and Equity		29,472,770			30,119,227			31,308,262
(Unit: in millions of Won except per share data and number of consolidated subsidiaries)
	For the nine monthsended September 30,2024			For the year endedDecember 31, 2023			For the year endedDecember 31, 2022
Operating Revenue		13,429,088			17,608,511			17,304,973
Operating Profit		1,569,260			1,753,204			1,612,070
Profit Before Income Tax		1,283,636			1,488,179			1,236,152
Profit from Continued Operations		992,290			1,145,937			947,831
Profit from Discontinued Operations		—			—			—
Profit for the Period		992,290			1,145,937			947,831
Profit for the Period Attributable to Owners of the Parent Company		959,297			1,093,611			912,400
Profit for the Period Attributable to Non-controlling<br>Interests		32,993			52,326			35,431
Basic Earnings Per Share (Won)		4,437			4,954			4,118
Diluted Earnings Per Share (Won)		4,425			4,950			4,116
Total Number of Consolidated Subsidiaries		24			25			25

B.	Summary Financial Information (Separate)

Below is the summary separate financial information of the Company as of September 30, 2024, December 31, 2023 and December 31, 2022 and for the nine months ended September 30, 2024 and for the years ended December 31, 2023 and 2022. The Company’s separate financial statements as of September 30, 2024 and December 31, 2023 and for the nine months ended September 30, 2024 and 2023, which are prepared in accordance with K-IFRS, are attached hereto.

(Unit: in millions of Won)


Assets
Current Assets	5,317,040		4,703,844		5,498,460
• Cash and Cash Equivalents	1,044,585		631,066		1,217,504
• Accounts Receivable – Trade, net	1,651,107		1,495,617		1,425,695
• Accounts Receivable – Other, net	402,293		343,036		435,096
• Others	2,219,055		2,234,125		2,420,165
Non-Current Assets	18,993,247		20,292,088		20,933,661
• Long-Term Investment Securities	1,305,726		1,426,290		1,155,188
• Investments in Subsidiaries and Associates	4,721,651		4,670,568		4,621,807
• Property and Equipment, net	8,293,241		9,076,459		9,519,663
• Goodwill	1,306,236		1,306,236		1,306,236
• Intangible Assets, net	1,788,870		2,250,829		2,693,400
• Others	1,577,523		1,561,706		1,637,367
Total Assets	24,310,287		24,995,932		26,432,121
Liabilities
Current Liabilities	6,309,990		5,505,470		6,236,135
Non-Current Liabilities	7,202,613		9,054,369		9,812,604
Total Liabilities	13,512,603		14,559,839		16,048,739
Equity
Share Capital	30,493		30,493		30,493
Capital Surplus (Deficit) and Other Capital Adjustments	(4,553,051	)	(4,766,147	)	(4,506,693	)
Retained Earnings	15,208,138		15,032,473		14,691,461
Reserves	112,104		139,274		168,121
Total Equity	10,797,684		10,436,093		10,383,382
Total Liabilities and Equity	24,310,287		24,995,932		26,432,121

(Unit: in millions of Won)


Operating Revenue	9,583,437	12,589,220	12,414,588
Operating Profit	1,343,832	1,455,870	1,321,131
Profit Before Income Tax	1,244,319	1,354,939	1,146,250
Profit for the Period	994,795	1,059,750	869,490
Basic Earnings Per Share (Won)	4,604	4,798	3,921
Diluted Earnings Per Share (Won)	4,592	4,794	3,919

2. Dividends and Others

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, 2023.

3. Use of Direct Financing

A.	Use of Proceeds from Public Offerings

[SK Telecom]

(As of September 30,<br>2024)						(Unit: in millions of Won)
Category	Bond Series	Payment Date	Planned Use of Proceeds			Actual Use of Proceeds			Reasons forDifference
			Use	Amount		Use	Amount
Corporate bond	Series 82-1,2,3	April 12, 2022	Repayment of debt		350,000	Repayment of debt		350,000		—
Corporate bond	Series 83-1	August 10, 2022	Repayment of debt		300,000	Repayment of debt		300,000		—
Corporate bond (ESG bond)	Series 83-2	August 10, 2022	Other (fund investment, etc.)		95,000	Other (investment in funds, etc.)		95,000		—
Corporate bond	Series 84-1,2,3,4	December 14, 2022	Repayment of debt		310,000	Repayment of debt		310,000		—
Corporate bond	Series 85-1,2	February 17, 2023	Repayment of debt		300,000	Repayment of debt		300,000		—
Corporate bond	Series 86-1,2,3	April 12, 2023	Repayment of debt		350,000	Repayment of debt		350,000		—
Hybrid securities	Series 3	June 5, 2023	Repayment of debt		400,000	Repayment of debt		400,000		—
Corporate bond	Series 87-1,2,3,4	October 18, 2023	Repayment of debt		295,000	Repayment of debt		295,000		—
Corporate bond	Series 88-1,2,3,4	February 22, 2024	Repayment of debt		400,000	Repayment of debt		400,000		—
*	Series 83-2 issued as of August 10, 2022 is an ESG bond. Series 83-2 was issued in furtherance of the Company’s ESG goal to achieve Net Zero by 2050, and covers solar energy generation equipment in the environment sector, mutual growth funds in the social sector and the SK<br>Telecom-Kakao ESG Fund. The proceeds from the bond offering were intended to refinance prior investments and new investments, and were used for the intended purpose.
---	---

[SK Broadband]

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

4. Other Matters Related to Financial Information

A.	Restatement of the Financial Statements

Not applicable.

B.	Loss Allowance
(1)	Loss Allowance of Trade and Other Receivables
---	---
	(Unit: in millions of Won, except percentages)
---	---	---	---	---	---	---	---
	As of September 30, 2024
	Gross amount		Loss Allowance		Percentage
Accounts receivable – trade		2,404,921		258,377		10.7	%
Loans		154,887		42,089		27.2	%
Accounts receivable – other		763,967		28,707		3.8	%
Accrued income		2,455		—		—
Guarantee deposits		292,447		300		0.1	%
Total		3,618,677		329,473		9.1	%
	(Unit: in millions of Won, except percentages)
	As of December 31, 2023
	Gross amount		Loss Allowance		Percentage
Accounts receivable – trade		2,233,586		242,737		10.9	%
Loans		150,671		42,087		27.9	%
Accounts receivable – other		690,157		33,276		4.8	%
Accrued income		4,295		—		—
Guarantee deposits		286,520		300		0.1	%
Total		3,365,229		318,400		9.5	%
	(Unit: in millions of Won, except percentages)
	As of December 31, 2022
	Gross amount		Loss Allowance		Percentage
Accounts receivable – trade		2,219,695		234,923		10.6	%
Loans		151,155		45,592		30.2	%
Accounts receivable – other		897,920		44,188		4.9	%
Accrued income		1,732		—		—
Guarantee deposits		280,945		300		0.1	%
Total		3,551,447		325,003		9.2	%
(2)	Movements in Loss Allowance of Trade and Other Receivables
---	---
	(Unit: in millions of Won)
---	---	---	---	---	---	---	---	---	---
	As ofSeptember 30,2024			As ofDecember 31,2023			As ofDecember 31,2022
Beginning balance		318,401			325,003			330,891
Effect of change in accounting policy		—			—			—
Increase of loss allowance		36,571			43,162			30,064
Reversal of loss allowance		—			—			—
Write-offs		(25,499	)		(49,764	)		(35,955	)
Other		—			—			3
Ending balance		329,473			318,400			325,003
(3)	Policies for Loss Allowance
---	---

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

(4)	Aging of Accounts Receivable
							(Unit: in millions of Won, except percentages)
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	As of September 30, 2024
	Six months orless			From sixmonths to oneyear			From one yearto three years			More thanthree years			Total
Accounts receivable – general		2,137,680			65,303			157,497			44,440			2,404,921
Percentage		88.9	%		2.7	%		6.5	%		1.8	%		100.0	%
C.	Inventories
---	---
(1)	Detailed Categories of Inventories
---	---
	(Unit: in millions of Won, except percentages)
---	---	---	---	---	---	---	---	---	---
Account Category	As of or for the ninemonths endedSeptember 30, 2024			As of or for the year endedDecember 31, 2023			As of or for the year endedDecember 31, 2022
Merchandise		182,463			166,614			151,303
Goods in transit		—			—			—
Other inventories		39,871			13,195			15,052
Total		222,334			179,809			166,355
Percentage of inventories to total assets<br><br><br>[Inventories / Total assets]		0.75	%		0.60	%		0.53	%
Inventory turnover<br><br><br>[Cost of sales / { ( Beginning balance of inventories + Ending balance of inventories ) / 2}]		6.52			7.32			6.84
(2)	Reporting of Inventories
---	---

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

D.	Fair Value Measurement

See 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 the Company. The compliance status is as of the date of the latest financial statements including the audit opinion of the independent auditor applicable to the determination of compliance status, except for the compliance status of the restriction on changes of ownership structure, which is as of the end of the reporting period.

Name	Issue Date	Maturity Date		Date of FiscalAgency Agreement	Fiscal Agent
Unsecured Bond – Series 62-3	Aug. 28, 2012	Aug. 28, 2032	90,000	Aug. 22, 2012	Meritz Securities Co., Ltd.
Maintenance of Financial Ratio	Key Term	Debt ratio no greater than 300%
---	---	---
	Compliance Status	Compliant
Restriction on Liens	Key Term	The total amount of secured debt not to exceed 100% of share capital as of the end of the previous fiscal year
	Compliance Status	Compliant
Restriction on Disposition of Assets	Key Term	Disposal of assets per fiscal year not to exceed Won 2 trillion
	Compliance Status	Compliant
Restriction on Changes of Ownership Structure	Key Term	—
	Compliance Status	—
Submission of Compliance Certificate	Compliance Status	Submitted on August 21, 2024

Name	Issue Date	Maturity Date	Principal Amount(millions of Won)		Date of FiscalAgency 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 65-3	Oct. 28, 2014	Oct. 28, 2024		190,000	Oct. 16, 2014	Korea Securities Finance Corp.
Unsecured Bond – Series 66-2	Feb. 26, 2015	Feb. 26, 2025		150,000	Feb. 11, 2015	Korea Securities Finance Corp.
Unsecured Bond – Series 66-3	Feb. 26, 2015	Feb. 26, 2030		50,000	Feb. 11, 2015	Korea Securities Finance Corp.
Unsecured Bond – Series 67-2	July 17, 2015	July 17, 2025		70,000	July 9, 2015	Korea Securities Finance Corp.
Unsecured Bond – Series 67-3	July 17, 2015	July 17, 2030		90,000	July 9, 2015	Korea Securities Finance Corp.
Unsecured Bond – Series 68-2	Nov. 30, 2015	Nov. 30, 2025		100,000	Nov. 18, 2015	Korea Securities Finance Corp.
Unsecured Bond – Series 68-3	Nov. 30, 2015	Nov. 30, 2035		70,000	Nov. 18, 2015	Korea Securities Finance Corp.
Unsecured Bond – Series 69-3	Mar. 4, 2016	Mar. 4, 2026		90,000	Feb. 22, 2016	Korea Securities Finance Corp.
Unsecured Bond – Series 69-4	Mar. 4, 2016	Mar. 4, 2036		80,000	Feb. 22, 2016	Korea Securities Finance Corp.
Maintenance of Financial Ratio	Key Term	Debt ratio no greater than 300%
---	---	---
	Compliance Status	Compliant
Restriction on Liens	Key Term	The total amount of secured debt not to exceed 100% of share capital as of the end of the previous fiscal year
	Compliance Status	Compliant
Restriction on Disposition of Assets	Key Term	Disposal of assets per fiscal year not to exceed Won 2 trillion
	Compliance Status	Compliant
Restriction on Changes of Ownership Structure	Key Term	—
	Compliance Status	—
Submission of Compliance Certificate	Compliance Status	Submitted on August 21, 2024
Name	Issue Date	Maturity Date	Principal Amount(millions of Won)		Date of FiscalAgency Agreement	Fiscal Agent
---	---	---	---	---	---	---
Unsecured Bond – Series 70-3	June 3, 2016	June 3, 2026		120,000	May 24, 2016	Korea Securities Finance Corp.
Unsecured Bond – Series 70-4	June 3, 2016	June 3, 2031		50,000	May 24, 2016	Korea Securities Finance Corp.
Unsecured Bond – Series 71-3	Apr. 25, 2017	Apr. 25, 2027		100,000	Apr. 13, 2017	Korea Securities Finance Corp.
Unsecured Bond – Series 71-4	Apr. 25, 2017	Apr. 25, 2032		90,000	Apr. 13, 2017	Korea Securities Finance Corp.
Maintenance of Financial Ratio	Key Term	Debt ratio no greater than 300%
---	---	---
	Compliance Status	Compliant
Restriction on Liens	Key Term	The total amount of secured debt not to exceed 150% of share capital as of the end of the previous fiscal year
	Compliance Status	Compliant
Restriction on Disposition of Assets	Key Term	Disposal of assets per fiscal year not to exceed Won 5 trillion
	Compliance Status	Compliant
Restriction on Changes of Ownership Structure	Key Term	—
	Compliance Status	—
Submission of Compliance Certificate	Compliance Status	Submitted on August 21, 2024

Name	Issue Date	Maturity Date	Principal Amount(millions of Won)		Date of FiscalAgency 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	Restriction of cross-shareholding<br> <br>Exclusion<br>from corporate group
	Compliance Status	Compliant
Submission of Compliance Certificate	Compliance Status	Submitted on August 21, 2024
Name	Issue Date	Maturity Date	Principal Amount(millions of Won)		Date of FiscalAgency 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	Restriction of cross-shareholding<br> <br>Exclusion<br>from corporate group
	Compliance Status	Compliant
Submission of Compliance Certificate	Compliance Status	Submitted on August 21, 2024
Name	Issue Date	Maturity Date	Principal Amount(millions of Won)		Date of FiscalAgency Agreement	Fiscal Agent
---	---	---	---	---	---	---
Unsecured Bond – Series 77-2	Oct. 22, 2019	Oct. 22, 2024		70,000	Oct. 10, 2019	Korea Securities Finance Corp.
Unsecured Bond – Series 77-3	Oct. 22, 2019	Oct. 22, 2029		40,000	Oct. 10, 2019	Korea Securities Finance Corp.
Unsecured Bond – Series 77-4	Oct. 22, 2019	Oct. 22, 2039		60,000	Oct. 10, 2019	Korea Securities Finance Corp.

Maintenance of Financial Ratio	Key Term	Debt ratio no greater than 300%
	Compliance Status	Compliant
Restriction on Liens	Key Term	The total amount of secured debt not to exceed 150% of share capital as of the end of the previous fiscal year
	Compliance Status	Compliant
Restriction on Disposition of Assets	Key Term	Disposal of assets per fiscal year not to exceed 50% of total assets
	Compliance Status	Compliant
Restriction on Changes of Ownership Structure	Key Term	Restriction of cross-shareholding<br> <br>Exclusion<br>from corporate group
	Compliance Status	Compliant
Submission of Compliance Certificate	Compliance Status	Submitted on August 21, 2024
Name	Issue Date	Maturity Date	Principal Amount(millions of Won)		Date of FiscalAgency Agreement	Fiscal Agent
---	---	---	---	---	---	---
Unsecured Bond – Series 78-2	Jan. 14, 2020	Jan. 14, 2025		130,000	Dec. 31, 2019	Korea Securities Finance Corp.
Unsecured Bond – Series 78-3	Jan. 14, 2020	Jan. 14, 2030		50,000	Dec. 31, 2019	Korea Securities Finance Corp.
Unsecured Bond – Series 78-4	Jan. 14, 2020	Jan. 14, 2040		70,000	Dec. 31, 2019	Korea Securities Finance Corp.
Maintenance of Financial Ratio	Key Term	Debt ratio no greater than 300%
---	---	---
	Compliance Status	Compliant
Restriction on Liens	Key Term	The total amount of secured debt not to exceed 150% of share capital as of the end of the previous fiscal year
	Compliance Status	Compliant
Restriction on Disposition of Assets	Key Term	Disposal of assets per fiscal year not to exceed 50% of total assets
	Compliance Status	Compliant
Restriction on Changes of Ownership Structure	Key Term	Restriction of cross-shareholding<br> <br>Exclusion<br>from corporate group
	Compliance Status	Compliant
Submission of Compliance Certificate	Compliance Status	Submitted on August 21, 2024
Name	Issue Date	Maturity Date	Principal Amount(millions of Won)		Date of FiscalAgency Agreement	Fiscal Agent
---	---	---	---	---	---	---
Unsecured Bond – Series 79-1	Oct. 19, 2020	Oct. 19, 2025		140,000	Oct. 6, 2020	Korea Securities Finance Corp.
Unsecured Bond – Series 79-2	Oct. 19, 2020	Oct. 19, 2030		40,000	Oct. 6, 2020	Korea Securities Finance Corp.
Unsecured Bond – Series 79-3	Oct. 19, 2020	Oct. 19, 2040		110,000	Oct. 6, 2020	Korea Securities Finance Corp.
Maintenance of Financial Ratio	Key Term	Debt ratio no greater than 300%
---	---	---
	Compliance Status	Compliant
Restriction on Liens	Key Term	The total amount of secured debt not to exceed 150% of share capital as of the end of the previous fiscal year
	Compliance Status	Compliant
Restriction on Disposition of Assets	Key Term	Disposal of assets per fiscal year not to exceed 50% of total assets
	Compliance Status	Compliant
Restriction on Changes of Ownership Structure	Key Term	Restriction of cross-shareholding<br> <br>Exclusion<br>from corporate group
	Compliance Status	Compliant
Submission of Compliance Certificate	Compliance Status	Submitted on August 21, 2024
Name	Issue Date	Maturity Date	Principal Amount(millions of Won)		Date of FiscalAgency Agreement	Fiscal Agent
---	---	---	---	---	---	---
Unsecured Bond – Series 80-2	Jan. 15, 2021	Jan. 15, 2026		80,000	Jan. 5, 2021	Korea Securities Finance Corp.
Unsecured Bond – Series 80-3	Jan. 15, 2021	Jan. 15, 2031		50,000	Jan. 5, 2021	Korea Securities Finance Corp.
Unsecured Bond – Series 80-4	Jan. 15, 2021	Jan. 15, 2041		100,000	Jan. 5, 2021	Korea Securities Finance Corp.

Maintenance of Financial Ratio	Key Term	Debt ratio no greater than 300%
	Compliance Status	Compliant
Restriction on Liens	Key Term	The total amount of secured debt not to exceed 150% of share capital as of the end of the previous fiscal year
	Compliance Status	Compliant
Restriction on Disposition of Assets	Key Term	Disposal of assets per fiscal year not to exceed 50% of total assets
	Compliance Status	Compliant
Restriction on Changes of Ownership Structure	Key Term	Restriction of cross-shareholding<br> <br>Exclusion<br>from corporate group
	Compliance Status	Compliant
Submission of Compliance Certificate	Compliance Status	Submitted on August 21, 2024
Name	Issue Date	Maturity Date	Principal Amount(millions of Won)		Date of FiscalAgency Agreement	Fiscal Agent
---	---	---	---	---	---	---
Unsecured Bond – Series 81-1	Oct. 28, 2021	Oct. 28, 2024		90,000	Oct. 18, 2021	Korea Securities Finance Corp.
Unsecured Bond – Series 81-2	Oct. 28, 2021	Oct. 28, 2026		70,000	Oct. 18, 2021	Korea Securities Finance Corp.
Unsecured Bond – Series 81-3	Oct. 28, 2021	Oct. 28, 2041		40,000	Oct. 18, 2021	Korea Securities Finance Corp.
Unsecured Bond – Series 82-1	April 12, 2022	April 12, 2025		240,000	March 31, 2022	Korea Securities Finance Corp.
Unsecured Bond – Series 82-2	April 12, 2022	April 12, 2027		70,000	March 31, 2022	Korea Securities Finance Corp.
Unsecured Bond – Series 82-3	April 12, 2022	April 12, 2042		40,000	March 31, 2022	Korea Securities Finance Corp.
Maintenance of Financial Ratio	Key Term	Debt ratio no greater than 300%
---	---	---
	Compliance Status	Compliant
Restriction on Liens	Key Term	The total amount of secured debt not to exceed 150% of share capital as of the end of the previous fiscal year
	Compliance Status	Compliant
Restriction on Disposition of Assets	Key Term	Disposal of assets per fiscal year not to exceed 50% of total assets
	Compliance Status	Compliant
Restriction on Changes of Ownership Structure	Key Term	Restriction of cross-shareholding<br> <br>Exclusion<br>from corporate group
	Compliance Status	Compliant
Submission of Compliance Certificate	Compliance Status	Submitted on August 21, 2024
Name	Issue Date	Maturity Date	Principal Amount(millions of Won)		Date of FiscalAgency Agreement	Fiscal Agent
---	---	---	---	---	---	---
Unsecured Bond – Series 83-1	August 10, 2022	August 8, 2025		300,000	July 29, 2022	Korea Securities Finance Corp.
Unsecured Bond – Series 83-2	August 10, 2022	August 10, 2027		95,000	July 29, 2022	Korea Securities Finance Corp.
Unsecured Bond – Series 84-1	December 14, 2022	December 13, 2024		100,000	December 2, 2022	Korea Securities Finance Corp.
Unsecured Bond – Series 84-2	December 14, 2022	December 12, 2025		110,000	December 2, 2022	Korea Securities Finance Corp.
Unsecured Bond – Series 84-3	December 14, 2022	December 14, 2027		60,000	December 2, 2022	Korea Securities Finance Corp.
Unsecured Bond – Series 84-4	December 14, 2022	December 14, 2032		40,000	December 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	Restriction of cross-shareholding<br> <br>Exclusion<br>from corporate group
	Compliance Status	Compliant
Submission of Compliance Certificate	Compliance Status	Submitted on August 21, 2024
Name	Issue Date	Maturity Date	Principal Amount(millions of Won)		Date of FiscalAgency Agreement	Fiscal Agent
---	---	---	---	---	---	---
Unsecured Bond – Series 85-1	February 17, 2023	February 17, 2026		110,000	February 7, 2023	Korea Securities Finance Corp.
Unsecured Bond – Series 85-2	February 17, 2023	February 17, 2028		190,000	February 7, 2023	Korea Securities Finance Corp.
Maintenance of Financial Ratio	Key Term	Debt ratio no greater than 300%
---	---	---
	Compliance Status	Compliant
Restriction on Liens	Key Term	The total amount of secured debt not to exceed 150% of share capital as of the end of the previous fiscal year
	Compliance Status	Compliant
Restriction on Disposition of Assets	Key Term	Disposal of assets per fiscal year not to exceed 50% of total assets
	Compliance Status	Compliant
Restriction on Changes of Ownership Structure	Key Term	Restriction of cross-shareholding<br> <br>Exclusion<br>from corporate group
	Compliance Status	Compliant
Submission of Compliance Certificate	Compliance Status	Submitted on August 21, 2024
Name	Issue Date	Maturity Date	Principal Amount(millions of Won)		Date of FiscalAgency Agreement	Fiscal Agent
---	---	---	---	---	---	---
Unsecured Bond – Series 86-1	April 12, 2023	April 10, 2026		80,000	March 31, 2023	Korea Securities Finance Corp.
Unsecured Bond – Series 86-2	April 12, 2023	April 12, 2028		200,000	March 31, 2023	Korea Securities Finance Corp.
Unsecured Bond – Series 86-3	April 12, 2023	April 12, 2030		70,000	March 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	Restriction of cross-shareholding<br> <br>Exclusion<br>from corporate group
	Compliance Status	Compliant
Submission of Compliance Certificate	Compliance Status	Submitted on August 21, 2024
Name	Issue Date	Maturity Date	Principal Amount(millions of Won)		Date of FiscalAgency 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 August 21, 2024
Name	Issue Date	Maturity Date	Principal Amount(millions of Won)		Date of FiscalAgency Agreement	Fiscal Agent
---	---	---	---	---	---	---
Unsecured Bond – Series 87-1	October 18, 2023	October 16, 2026		115,000	October 5, 2023	Korea Securities Finance Corp.
Unsecured Bond – Series 87-2	October 18, 2023	October 18, 2028		100,000	October 5, 2023	Korea Securities Finance Corp.
Unsecured Bond – Series 87-3	October 18, 2023	October 18, 2030		50,000	October 5, 2023	Korea Securities Finance Corp.
Unsecured Bond – Series 87-4	October 18, 2023	October 18, 2033		30,000	October 5, 2023	Korea Securities Finance Corp.
Maintenance of Financial Ratio	Key Term	Debt ratio no greater than 300%
---	---	---
	Compliance Status	Compliant
Restriction on Liens	Key Term	The total amount of secured debt not to exceed 150% of share capital as of the end of the previous fiscal year
	Compliance Status	Compliant
Restriction on Disposition of Assets	Key Term	Disposal of assets per fiscal year not to exceed 50% of total assets
	Compliance Status	Compliant
Restriction on Changes of Ownership Structure	Key Term	Restriction of cross-shareholding<br> <br>Exclusion<br>from corporate group
	Compliance Status	Compliant
Submission of Compliance Certificate	Compliance Status	Submitted on August 21, 2024
Name	Issue Date	Maturity Date	Principal Amount(millions of Won)		Date of FiscalAgency Agreement	Fiscal Agent
---	---	---	---	---	---	---
Unsecured Bond – Series 88-1	February 22, 2024	February 22, 2027		180,000	February 8, 2024	Korea Securities Finance Corp.
Unsecured Bond – Series 88-2	February 22, 2024	February 22, 2029		110,000	February 8, 2024	Korea Securities Finance Corp.
Unsecured Bond – Series 88-3	February 22, 2024	February 22, 2034		110,000	February 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	Restriction of cross-shareholding<br> <br>Exclusion<br>from corporate group
	Compliance Status	Compliant
Submission of Compliance Certificate	Compliance Status	Submitted on August 21, 2024

[SK Broadband]

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

Name	Issue Date	Maturity Date		Date of FiscalAgency 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 49-2	June 11, 2020	June 11, 2025	100,000	June 1, 2020	Korea Securities Finance Corp.
Unsecured Bond – Series 50	Sept. 25, 2020	Sept. 25, 2025	160,000	Sept. 15, 2020	Korea Securities Finance Corp.
Unsecured Bond – Series 52-1	Jan. 25, 2022	Jan. 24, 2025	100,000	Jan. 13, 2022	Korea Securities Finance Corp.
Unsecured Bond – Series 52-2	Jan. 25, 2022	Jan. 25, 2032	50,000	Jan. 13, 2022	Korea Securities Finance Corp.
Unsecured Bond – Series 53-1	Mar. 2, 2023	Feb. 28, 2025	50,000	Feb. 17, 2023	Korea Securities Finance Corp.
Unsecured Bond – Series 53-2	Mar. 2, 2023	Feb. 27, 2026	100,000	Feb. 17, 2023	Korea Securities Finance Corp.
Unsecured Bond – Series 53-3	Mar. 2, 2023	Mar. 2, 2028	90,000	Feb. 17, 2023	Korea Securities Finance Corp.
Unsecured Bond – Series 54-1	Oct. 30, 2023	Oct. 30, 2026	100,000	Oct. 18, 2023	Korea Securities Finance Corp.
Unsecured Bond – Series 54-2	Oct. 30, 2023	Oct. 30, 2028	60,000	Oct. 18, 2023	Korea Securities Finance Corp.
Unsecured Bond – Series 55-1	January 22, 2024	January 22, 2027	170,000	January 10, 2024	Korea Securities Finance Corp.
Unsecured Bond – Series 55-2	January 22, 2024	January 22, 2029	60,000	January 10, 2024	Korea Securities Finance Corp.
Maintenance of Financial Ratio	Key Term	Debt ratio no greater than 400%
---	---	---
	Compliance Status	Compliant
Restriction on Liens	Key Term	The total amount of secured debt not to exceed 200% of share capital as of the end of the previous fiscal year
	Compliance Status	Compliant
Restriction on Disposition of Assets	Key Term	Disposal of assets per fiscal year not to exceed 70% of total assets
	Compliance Status	Compliant
Restriction on Changes of Ownership Structure	Key Term	Restriction on changes of ownership structure
	Compliance Status	Compliant
Submission of Compliance Certificate	Compliance Status	Submitted on September 12, 2024

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, 2023.

V.	AUDITOR’S OPINION

1. Independent Auditors and Audit Opinions

A.	Independent Auditor and Audit Opinion (Separate and Consolidated)
Period	Independent auditor	Audit opinion	Emphasis of Matter	Critical Audit Matters
---	---	---	---	---
Nine months ended September 30, 2024	Ernst & Young Han Young	—	—	—
Year ended<br> <br>December 31, 2023	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
Year ended December 31, 2022	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
*	Note: All consolidated subsidiaries of the Company that are subject to audits and whose audits have been<br>completed received unqualified audit opinions.
---	---
**	The audit opinion is on the consolidated and separate financial statements.
---	---
B.	Audit Services Contracts with Independent Auditors
---	---
(Unit: in millions of Won except number of hours)
---	---	---	---	---	---	---	---	---	---	---
Period	Auditors	Contents	Audit Contract				ActualPerformance
			Fee		Totalnumberof hours		Fee		Totalnumberof hours
Nine months ended September 30, 2024	Ernst & Young Han Young	Quarterly and semi-annual review		2,880		25,000		1,200		10,422
		Separate financial statements audit
		Consolidated financial statements audit
		English financial statements review and other audit task
		Internal accounting system audit
Year ended December 31, 2023	Ernst & Young Han Young	Quarterly and semi-annual review		2,780		24,800		2,780		24,800
		Separate financial statements audit
		Consolidated financial statements audit
		English financial statements review and other audit task
		Internal accounting system audit
Year ended December 31, 2022	Ernst & Young Han Young	Quarterly and semi-annual review		2,700		24,100		2,700		24,100
		Separate financial statements audit
		Consolidated financial statements audit
		English financial statements review and other audit task
		Internal accounting system audit
C.	Non-Audit Services Contracts with Independent Auditors
---	---
(Unit: in millions of Won)
---	---	---	---	---
Period	Contract date	Service provided	Service duration	Fee
Nine months ended September 30, 2024	—	—	—	—
Year ended December 31, 2023	—	—	—	—
Year ended December 31, 2022	—	—	—	—

D.	Discussions between Audit Committee and Independent Auditors
Date	Attendance	Method	Key Matters Discussed
---	---	---	---
February 22, 2022	Company’s Audit Committee: 4<br><br><br>Accounting Firm’s Independent Auditor: 1	In-person	Report on 2021 critical audit matters and results of audit of financial statements; report on results of 2021 internal accounting management system audit
April 27, 2022	Company’s Audit Committee: 4<br><br><br>Accounting Firm’s Independent Auditor: 1	In-person	Report on 2021 Public Company Accounting Oversight Board audit results; report on 2022 audit plan and selection of critical audit matters
July 27, 2022	Company’s Audit Committee: 4<br><br><br>Accounting Firm’s Independent Auditor: 1	In-person	Report on results of external auditors’ 2022 semi-annual review
December 19, 2022	Company’s Audit Committee: 4<br><br><br>Accounting Firm’s Independent Auditor: 1	In-person	Report on the 2022 financial report internal control test result; report on audit plans at the end of the period
February 22, 2023	Company’s Audit Committee: 4<br><br><br>Accounting Firm’s Independent Auditor: 1	In-person	Report on 2022 results of audit of financial statements; report on results of 2022 internal accounting management system audit
March 9, 2023	Company’s Audit Committee: 4<br><br><br>Accounting Firm’s Independent Auditor: 1	In-person	Report on 2022 audit of financial statements; report on results of 2022 internal accounting management system audit
February 20, 2024	Company’s Audit Committee: 4<br><br><br>Auditor: 1	In-person	Report on 2023 results of audit of financial statements; report on results of 2023 internal accounting management system audit
April 22, 2024	Company’s Audit Committee: 3<br><br><br>Auditor: 1	In-person	Report on 2023 Public Company Accounting Oversight Board audit results
May 22, 2024	Company’s Audit Committee: 3<br><br><br>Auditor: 1	In-person	Report on audit plans for 2024
July 24, 2024	Company’s Audit Committee: 4<br><br><br>Auditor: 1	In-person	Report on results of external auditors’ 2024 semi-annual review

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 six months ended June 30, 2024.

2. Audit System

3. Shareholders’ Exercise of Voting Rights

VII.	SHAREHOLDERS

1. Shareholdings of the Largest Shareholder and Related Persons

A.	Shareholdings of the Largest Shareholder and Related Persons
(As of September 30, 2024)			(Unit: in shares and percentages)
---	---	---	---	---	---	---	---	---	---	---
Name	Relationship	Type of share	Number of shares owned and ownership ratio
			Beginning of Period				End of Period
			Number ofshares		Ownershipratio		Number ofshares		Ownershipratio
SK Inc.	Largest Shareholder	Common share		65,668,397		30.01		65,668,397		30.57
Tae Won Chey	Related Person	Common share		303		0.00		303		0.00
Dong Hyun Jang	Related Person	Common share		762		0.00		762		0.00
Young Sang Ryu	Related Person	Common share		11,974		0.01		20,309		0.01
Yong-Hak Kim	Related Person	Common share		3,358		0.00		4,923		0.00
Seok-Dong Kim	Related Person	Common share		2,785		0.00		3,763		0.00
Junmo Kim	Related Person	Common share		2,785		0.00		3,763		0.00
Haeyun Oh	Related Person	Common share		1,338		0.00		2,316		0.00
Mi Kyung Noh	Related Person	Common share		0		0.00		978		0.00
Sung Hyung Lee	Related Person	Common share		0		0.00		0		0.00
Poong Young Yoon	Related Person	Common share		2,733		0.00		2,733		0.00
Jong Ryeol Kang	Related Person	Common share		5,758		0.00		8,823		0.00
Yang Seob Kim	Related Person	Common share		0		0.00		0		0.00
Total		Common share		65,724,963		30.03		65,717,070		30.60
*	The change in ownership ratio reflects the cancellation of treasury shares (1.8% of total shares issued) in<br>February 2024.
---	---
**	The number of shares owned and ownership ratio as of the beginning of the period account for the 24,770 shares<br>owned by Kyu-nam Choi (former non-executive director) and Youngmin Yoon (former independent director), whose respective terms expired in March 2024, and Jung Ho Park<br>(former related person), whose related party status was eliminated in September 2024.
---	---
***	The number of shares owned and ownership ratio as of the beginning of the period do not account for the shares<br>owned by Yang Seob Kim (executive director), Sung Hyung Lee (non-executive director) and Mi Kyung Noh (independent director), who were newly appointed in March 2024.
---	---
B.	Overview of the Largest Shareholder
---	---

As of September 30, 2024, the Company’s largest shareholder was SK Inc. SK Inc. was established on April 13, 1991 and was made public on the securities market on November 11, 2009 under the identification code “034730.” SK Inc. is located at 26, Jong-ro, Jongno-gu, Seoul, Korea. SK Inc.’s telephone number is +82-2-2121-5114 and its website is https://www.sk-inc.com/.

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

Changes in shareholdings of the largest shareholder are as follows:

(As of September 30, 2024)						(Unit: in shares and percentages)
LargestShareholder	Date of the change	Shares Held*		HoldingRatio		Remarks
SK Inc.	January 24, 2022		65,695,437		30.02	Jung Ho Park, director of the Company’s affiliate, and Young Sang Ryu, representative director of the Company, acquired 3,000 and 4,000 shares, respectively.
	February 25, 2022		65,703,035		30.02	Jung Ho Park, director of the Company’s affiliate, acquired 7,598 shares.
	March 25, 2022		65,706,519		30.03	Jong Ryeol Kang, executive director of the Company, acquired 3,484 shares.
	May 3, 2022		65,712,503		30.03	Four independent directors of the Company, Youngmin Yoon, Jung Ho Ahn, Junmo Kim, Seok-dong Kim, each acquired 1,144 shares. Yong-Hak Kim, another independent director of the Company, acquired 1,408<br>shares.

(As of September 30, 2024)						(Unit: in shares and percentages)
LargestShareholder	Date of the change	Shares Held*		HoldingRatio		Remarks
	February 27, 2023		65,719,411		30.03	Young Sang Ryu, representative director of the Company, and Jong Ryeol Kang, executive director of the Company, acquired 4,634 and 2,274 shares, respectively.
	March 28, 2023		65,717,964		30.03	Retirement of Jung Ho Ahn, independent director of the Company (1,447 shares)
	April 21, 2023		65,724,963		30.03	Four independent directors, Youngmin Yoon, Haeyun Oh, Junmo Kim and Seok-dong Kim each acquired 1,338 shares. Yong-Hak Kim, independent director of the Company, acquired 1,647 shares.
	January 29, 2024		65,736,363		30.04	Young Sang Ryu, representative director of the Company, and Jong Ryeol Kang, executive director of the Company, acquired 8,335 and 3,065 shares, respectively.
	March 26, 2024		65,733,123		30.60	Retirement of Youngmin Yoon, independent director of the Company (2,785 shares) and Kyu-nam Choi, non-executive director of the company (455<br>shares)
	April 29, 2024		65,738,600		30.61	Four independent directors of the Company, Seok-Dong Kim, Junmo Kim, Mi Kyung Noh, Haeyun Oh, each acquired 978 shares. Yong-Hak Kim, another independent director of the Company, acquired 1,565 shares.
	September 22, 2024		65,717,070		30.60	Elimination of former related person Park Jeong-ho’s related party relationship (21,530 shares).
*	The figures for shares held and holding ratio are based on the shareholding of the largest shareholder and its<br>related persons.
---	---
VIII.	EMPLOYEES AND DIRECTORS
---	---

1. Officers and Employees

A.	Registered Directors
(As of March 31, 2024)
---	---	---	---	---	---	---
Name	Gender	Date of Birth	Position	Professional Background	Duration ofTerm	End ofCurrentTerm
Young Sang Ryu	Male	May 1970	Chief Executive Officer; Representative Director	Former Head, SK Telecom MNO business	6 years and<br><br><br>7 months	—
Jong Ryeol Kang	Male	Oct. 1964	CSPO and Head of ICT Infrastructure Center	Former Head, Corporate Culture Division	2 years and<br><br><br>7 months	—
Yang Seob Kim	Male	Feb. 1966	Head of Corporate<br><br><br>Planning and Chief Financial Officer	Former Head of Finance Division and Chief Financial Officer, SK Innovation	7 months	—
Sung Hyung Lee	Male	Dec. 1965	Non-executive Director	President, Chief Financial Officer and Head of Finance Division, SK Inc.; Former President, Chief Financial Officer and Head of PM Division, SK Inc.	7 months	—
Yong-Hak Kim	Male	Jan. 1953	Independent Director	Former President (Professor Emeritus), Yonsei University	4 years and<br><br><br>7 months	—
Seok-Dong Kim	Male	May 1953	Independent Director	Former Chairman, Financial Services Commission	5 years and<br><br><br>7 months	—
Junmo Kim	Male	Sep. 1976	Independent Director	Professor, Department of Electrical Engineering at Korea Advanced Institute of Science and Technology	4 years and<br><br><br>7 months	—

(As of March 31, 2024)
Name	Gender	Date of Birth	Position	Professional Background	Duration ofTerm	End ofCurrentTerm
Haeyun Oh	Female	Nov. 1974	Independent Director	Former Director of MARS Artificial Intelligence Integrated Research Center, Korea Advanced Institute of Science and Technology; Professor, Department of Computer Science at Korea Advanced Institute of<br>Science and Technology	1 year and<br><br><br>7 months	—
Mi Kyung Noh	Female	Aug. 1965	Independent Director	Regional Head of Credit Risk Review and Asia Pacific Risk, HSBC Hong Kong	7 months	—
*	At the 40th General Meeting of Shareholders held on March 26, 2024, Young Sang Ryu was re-elected as a representative director, Yang Seob Kim was newly elected as an executive director, Sung Hyung Lee was newly appointed as a non-executive director, and Mi Kyung<br>Noh was newly appointed as an independent director and a member of the audit committee.
---	---

2. Compensation of Directorsand Officers

IX.	RELATED PARTY TRANSACTIONS

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

None.

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

A.	Purchase and Dispositions of Investments
(As of September 30, 2024)					(Unit: in millions of Won)
---	---	---	---	---	---	---	---	---	---	---	---	---
Name (Corporate name)	Relationship	Purchase and Dispositions ofInvestments										Remarks
		Type ofInvestment	Transaction Details
			Beginning		Increase		Decrease			Ending
SK Telecom Americas, Inc.	Subsidiary	Shares		5,498		5,878		—			11,376	Additional acquisition
Atlas Investment	Subsidiary	Shares		193,661		40,625		—			234,287	Additional acquisition
Quantum Innovation Fund 1	Subsidiary	Shares		1,297		—		(1,297	)		—	Liquidation

3. Transactions with the Largest Shareholder and Related Parties

(As of September 30, 2024)		(Unit: in millions of Won)
Counterparty	RelationshipwithCounterparty	Type	Transaction Period	Transaction Details	Transaction Amount
PS&Marketing	Subsidiary	Purchase	January 1, 2024 – September 30, 2024	Marketing fees, etc.	950,668

4. Related Party Transactions

See Note 30 of the notes to the Company’s interim consolidated financial statements attached hereto for more information regarding related party transactions.

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

A.	Provisional Payment and Loans (including loans on marketable securities)
(As of September 30, 2024)							(Unit: in millions of Won)
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
Name (Corporate name)	Relationship	Account category	Change details								Accruedinterest		Remarks
			Beginning		Increase		Decrease		Ending
Baekmajang and others	Agency	Long-term and short-term<br>loans		69,621		92,480		92,314		69,787		—		—
Daehan Kanggun BCN Inc.	Investee	Long-term loans		22,147		—		—		22,147		—		—
B.	Other transactions
---	---

See Note 30 of the notes to the Company’s interim consolidated financial statements attached hereto for more information regarding other related party transactions.

X.	OTHER INFORMATION RELATING TO THE PROTECTION OF INVESTORS

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

None.

2. Contingent Liabilities

A.	Legal Proceedings

[SK Telecom]

As of September 30, 2024, the Company is involved in various pending legal proceedings, and the provisions recognized for these proceedings are not material. The management of the Company has determined that there are currently no present obligations in connection with proceedings for which no provision has been recognized. The management has also determined that the outcome of these proceedings will not have a significant impact on the Company’s financial position and operating performance.

[SK Broadband]

As of September 30, 2024, there were 21 pending lawsuits against SK Broadband (aggregate amount of claims of Won 8,559 million).

B.	Other Contingent Liabilities and Guarantees for Payment

[SK Telecom]

None.

[SK Broadband]

As of September 30, 2024, SK Broadband has entered into revolving credit facilities with a limit of Won 170 billion with three financial institutions including Hana Bank in relation to its loans.

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

SK Broadband has provided “geun” mortgage amounting to Won 1,098 million on certain of its buildings, including Gyeyang Guksa, in connection with leasing of such buildings.

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

As of September 30, 2024, SK Broadband has been provided with the following material payment guarantees by other parties.

(Unit: in millions of Won)
Guarantor	Guarantee Details	Guaranteed Amount
Seoul Guarantee Insurance Company	Contract and defect performance guarantee		30,747
Korea Content Financial Cooperative	Contract performance guarantee		44,657

[PS&Marketing]

As of September 30, 2024, PS&Marketing has been provided with the following material payment guarantees by other parties.

(Unit: in millions of Won)
Guarantor	Guarantee Details	Guaranteed Amount
Seoul Guarantee Insurance Company	Performance guarantee		1,605

[SK Telink]

As of September 30, 2024, SK Telink provided the following material payment guarantees to other parties.

(Unit: in millions of Won)
Guarantor	Counterparty	Guaranteed Amount		Guarantee Details
SK Telink	Korea Coast Guard and others		266		Contract guarantee

As of September 30, 2024, SK Telink has been provided with the following material payment guarantees by other parties.

(Unit: in millions of Won)
Guarantor	Guarantee Details	Guaranteed Amount
Seoul Guarantee Insurance Company	Contract guarantee		728

[Home&Service]

As of September 30, 2024, Home&Service has been provided with the following material payment guarantees by other parties.

(Unit: in millions of Won)
Guarantor	Guarantee Details	Guaranteed Amount
Seoul Guarantee Insurance Company	Payment guarantees and warranties		49

As of September 30, 2024, Home&Service has entered into the following credit facilities with financial institutions.

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

[SK M&Service]

As of September 30, 2024, SK M&Service has entered into the following credit facilities with financial institutions.

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

As of September 30, 2024, SK M&Service has been provided with the following material payment guarantees by other parties.

(Unit: in millions of Won)
Guarantor	Guarantee Details		Guaranteed Amount
Korea Tourism Organization and 35 other companies		Transaction performance guarantee		2,744
SK Energy		Transaction performance guarantee		700

[SK O&S]

As of September 30, 2024, SK O&S has been provided with the following material payment guarantees by other parties.

(Unit: in millions of Won)
Guarantor	Guarantee Details	Guaranteed Amount
Seoul Guarantee Insurance Company	Contract performance guarantee		50,000

[SK Stoa]

As of September 30, 2024, SK Stoa has been provided with the following material payment guarantees by other parties.

(Unit: in millions of Won)
Guarantor	Guarantee Details	Guaranteed Amount
Kookmin Bank	Performance guarantee		1,280
Kookmin Bank	Revolving credit		18,000

[SAPEON Korea]

As of September 30, 2024, SAPEON Korea has been provided with the following material payment guarantees by other parties.

(Unit: in millions of Won)
Guarantor	Guarantee Details	Guaranteed Amount
Seoul Guarantee Insurance Company	Payment guarantees, warranties and contract guarantees		917

3. Status of Sanctions, etc.

4. Material Events Subsequent to the Reporting Period

5. Green Management

SIGNATURES

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

SK Telecom Co., Ltd.
(Registrant)
By: /s/ Heejun Chung
(Signature)

Name:	Heejun Chung
Title:	Senior Vice President

Date: December 11, 2024

SK TELECOM CO., LTD. AND ITS SUBSIDIARIES

Interim Consolidated Financial Statements

For each of the nine-month periods ended September 30, 2024 and 2023

(with the independent auditor’s review report)

Contents

Report on Review of Interim Consolidated Financial Statements
	Page
Interim Consolidated Financial Statements
Interim Consolidated Statements of Financial Position		1
Interim Consolidated Statements of Income		3
Interim Consolidated Statements of Comprehensive Income		4
Interim Consolidated Statements of Changes in Equity		5
Interim Consolidated Statements of Cash Flows		6
Notes to the Interim Consolidated Financial Statements		8

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

Report on review of interim consolidated financial statements

(English translation of a report originally issued in Korean)

The Shareholders and Board of Directors

SK TelecomCo., Ltd.

We have reviewed the accompanying interim consolidated financial statements of SK Telecom Co., Ltd. and its subsidiaries (collectively referred to as the “Group”), which comprise the interim consolidated statement of financial position as of September 30, 2024, and the related interim consolidated statements of income, interim consolidated statements of comprehensive income for each of the three-month and nine-month periods ended September 30, 2024 and 2023, interim consolidated statements of changes in equity and interim consolidated statements of cash flows for each of the nine-month periods ended September 30, 2024 and 2023, and a summary of material accounting policy information and other explanatory information.

Management’sresponsibility for the interim consolidated financial statements

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

Auditor’s responsibility

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

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

Conclusion

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

LOGO

Other matter

We have audited the consolidated statement of financial position as of December 31, 2023, and the related consolidated statement of income, consolidated statement of comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the year then ended (not presented herein) in accordance with KSA, and our report dated March 6, 2024 expressed an unqualified opinion thereon. The accompanying consolidated statement of financial position as of December 31, 2023, presented for comparative purposes, is not different, in all material respects, from the above audited consolidated statement of financial position.

November 13, 2024

This review report is effective as of November 13, 2024, the independent auditor’s review report date. Accordingly, certain material subsequent events or circumstances may have occurred during the period from the date of the independent auditor’s review report to the time this review report is used. Such events and circumstances could significantly affect the accompanying interim consolidated financial statements and may result in modification to this review report.

SK TELECOM CO., LTD. AND ITS SUBSIDIARIES

INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2024 AND DECEMBER 31, 2023 AND

FOR THE THREE-MONTH AND NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2024 AND 2023

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

Ryu, Young-Sang
Chief Executive Officer
SK TELECOM CO., LTD.

SK TELECOM CO., LTD. and its Subsidiaries

Interim Consolidated Statements of Financial Position

As of September 30, 2024 and December 31, 2023

(In millions of won)		September 30, 2024<br>(Unaudited)		December 31, 2023
Assets
Current Assets:
Cash and cash equivalents	28,29	~~W~~	1,966,333		1,454,978
Short-term financial instruments	28,29		270,684		294,934
Accounts receivable – trade, net	5,28,29,30		2,132,258		1,978,532
Short-term loans, net	5,28,29		78,416		78,129
Accounts receivable – other, net	5,28,29,30,31		380,592		344,350
Contract assets	7,29		90,645		89,934
Prepaid expenses	6		1,977,214		1,953,769
Prepaid income taxes	26		100		161
Derivative financial assets	28,29		39,097		8,974
Inventories, net	8		222,334		179,809
Non-current assets held for sale	34		5,842		10,515
Advanced payments and others	5,28,29,30		208,000		191,517
		****	7,371,515	****	6,585,602
Non-Current Assets:
Long-term financial instruments	28,29		375		375
Long-term investment securities	9,28,29		1,598,191		1,679,384
Investments in associates and joint ventures	10		1,954,143		1,915,012
Investment property, net	12		31,632		34,812
Property and equipment, net	11,13,30,31		12,116,965		13,006,196
Goodwill			2,075,009		2,075,009
Intangible assets, net	14		2,347,852		2,861,137
Long-term contract assets	7,29		47,017		39,837
Long-term loans, net	5,28,29,30		34,382		30,455
Long-term accounts receivable – other, net	5,28,29,30,31		354,668		312,531
Long-term prepaid expenses	6		1,098,582		1,086,107
Guarantee deposits, net	5,28,29,30		158,918		156,863
Long-term derivative financial assets	28,29		124,643		139,560
Deferred tax assets	26		14,970		11,609
Defined benefit assets	18		128,213		170,737
Other non-current assets	5,28,29		15,695		14,001
		****	22,101,255	****	23,533,625
Total Assets		~~W~~	29,472,770	****	30,119,227

(Continued)

SK TELECOM CO., LTD. and its Subsidiaries

Interim Consolidated Statements of Financial Position, Continued

As of September 30, 2024 and December 31, 2023

(In millions of won)		September 30, 2024<br>(Unaudited)			December 31, 2023
Liabilities and Shareholders’ Equity
Current Liabilities:
Accounts payable – trade	28,29,30	~~W~~	165,485			139,876
Accounts payable – other	28,29,30		1,348,573			1,913,006
Withholdings	28,29,30		1,035,064			802,506
Contract liabilities	7		165,646			155,576
Accrued expenses	28,29		1,482,285			1,439,786
Income tax payable	26		178,269			142,496
Derivative financial liabilities	28,29		391,265			—
Provisions	17,33		41,845			38,255
Short-term borrowings	15,28,29		100,000			—
Current portion of long-term debt, net	15,28,29		2,484,667			1,621,844
Current portion of long-term payables – other	16,28,29		366,161			367,770
Lease liabilities	28,29,30		368,095			372,826
Liabilities held for sale			—			39
		****	8,127,355	****	****	6,993,980	****
Non-Current Liabilities:
Debentures, excluding current portion, net	15,28,29		6,014,885			7,106,299
Long-term borrowings, excluding current portion, net	15,28,29		56,250			315,578
Long-term payables – other	16,28,29		537,750			892,683
Long-term lease liabilities	28,29,30		1,139,668			1,238,607
Long-term contract liabilities	7		61,363			56,917
Defined benefit liabilities	18		12,653			—
Long-term derivative financial liabilities	28,29		—			305,088
Long-term provisions	17		79,903			83,169
Deferred tax liabilities	26		810,300			832,236
Other non-current liabilities	28,29,30		71,239			66,271
		****	8,784,011	****	****	10,896,848	****
Total Liabilities		****	16,911,366	****	****	17,890,828	****
Shareholders’ Equity:
Share capital	1,19		30,493			30,493
Capital surplus and others	19,20		(11,612,509	)		(11,828,644	)
Retained earnings	21		22,920,903			22,799,981
Reserves	22		403,936			387,216
Equity attributable to owners of the Parent Company			11,742,823			11,389,046
Non-controlling interests			818,581			839,353
Total Shareholders’ Equity		****	12,561,404	****	****	12,228,399	****
Total Liabilities and Shareholders’ Equity		~~W~~	29,472,770	****	****	30,119,227	****

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

SK TELECOM CO., LTD. and its Subsidiaries

Interim Consolidated Statements of Income

For the three-month and nine-month periods ended September 30, 2024 and 2023

(In millions of won, except for earnings per share)			2024<br>(Unaudited)							2023<br>(Unaudited)
		Three-monthperiod endedSeptember 30				Nine-monthperiod endedSeptember 30			Three-monthperiod endedSeptember 30				Nine-monthperiod endedSeptember 30
Operating revenue:	4,30
Revenue			~~W~~	4,532,118			13,429,088				4,402,610			13,081,220
Operating expenses:	30
Labor				639,370			1,923,989				614,249			1,822,663
Commission	6			1,370,080			4,116,835				1,381,064			4,089,546
Depreciation and amortization	4			887,260			2,668,248				894,783			2,708,614
Network interconnection				175,161			521,511				160,924			500,631
Leased lines				66,056			197,760				67,358			206,287
Advertising				46,685			117,748				51,544			144,293
Rent				36,591			100,626				37,442			109,500
Cost of goods sold	8			363,710			982,524				302,507			893,964
Others	23			413,942			1,230,587				394,777			1,149,573
				3,998,855			11,859,828				3,904,648			11,625,071
Operating profit	4		****	533,263	****		1,569,260	****		****	497,962	****		1,456,149	****
Finance income	4,25			28,876			123,666				20,019			184,074
Finance costs	4,25			(207,275	)		(442,756	)			(115,920	)		(377,520	)
Gain (loss) relating to investments in associates and joint ventures, net	4,10			9,260			24,685				(3,235	)		6,437
Other non-operating income	4,24			8,410			31,982				8,593			28,922
Other non-operating expenses	4,24			(7,805	)		(23,201	)			(7,374	)		(27,278	)
Profit before income tax	4		****	364,729	****		1,283,636	****		****	400,045	****		1,270,784	****
Income tax expense	26			84,553			291,346				91,808			312,289
Profit for the period			~~W~~	280,176	****		992,290	****		****	308,237	****		958,495	****
Attributable to:
Owners of the Parent Company			~~W~~	268,905			959,297				297,923			917,612
Non-controlling interests				11,271			32,993				10,314			40,883
Earnings per share:	27
Basic earnings per share (in won)			~~W~~	1,240			4,437				1,346			4,150
Diluted earnings per share (in won)				1,236			4,425				1,345			4,149

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

SK TELECOM CO., LTD. and its Subsidiaries

Interim Consolidated Statements of Comprehensive Income

For the three-month and nine-month periods ended September 30, 2024 and 2023

(In millions of won)			2024<br>(Unaudited)						2023<br>(Unaudited)
	Note		Three-monthperiod endedSeptember 30			Nine-monthperiod endedSeptember 30			Three-monthperiod endedSeptember 30			Nine-monthperiod endedSeptember 30
Profit for the period			~~W~~	280,176	****	****	992,290	****	****	308,237	****	****	958,495	****
Other comprehensive income (loss):
Items that will not be reclassified subsequently to profit or loss, net of taxes:
Remeasurement of defined benefit liabilities (assets)		18		9,939			11,314			4,940			4,077
Valuation loss on financial assets at fair value through other comprehensive income		22		(59,659	)		(74,812	)		(78,143	)		(122,691	)
Items that are or may be reclassified subsequently to profit or loss, net oftaxes:
Net change in other comprehensive income of investments in associates and joint ventures		10,22		(66,846	)		22,797			31,838			67,391
Net change in unrealized fair value of derivatives		22		(28	)		908			(8,336	)		(12,115	)
Foreign currency translation differences for foreign operations		22		(10,865	)		9,175			5,713			15,403
Other comprehensive loss for the period, net of taxes			****	(127,459	)	****	(30,618	)	****	(43,988	)	****	(47,935	)
Total comprehensive income			~~W~~	152,717	****	****	961,672	****	****	264,249	****	****	910,560	****
Total comprehensive income attributable to:
Owners of the Parent Company			~~W~~	139,604			929,214			253,670			868,732
Non-controlling interests				13,113			32,458			10,579			41,828

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

SK TELECOM CO., LTD. and its Subsidiaries

Interim Consolidated Statements of Changes in Equity

For the nine-month periods ended September 30, 2024 and 2023

(In millions of won)			Attributable to owners of the Parent Company														Non-<br>controlling<br>interests			Total<br>Equity
	Note		Share capital		Capital surplus<br>and others			Retained<br>earnings			Reserves			Sub-total
Balance as of January 1, 2023			~~W~~	30,493	****	(11,567,117	)	****	22,463,711	****	****	391,233	****	****	11,318,320	****	****	836,876	****	****	12,155,196	****
Total comprehensive income:
Profit for the period				—		—			917,612			—			917,612			40,883			958,495
Other comprehensive income (loss)		10,18,22		—		—			3,270			(52,150	)		(48,880	)		945			(47,935	)
				—		—			920,882			(52,150	)		868,732			41,828			910,560
Transactions with owners:
Annual dividends				—		—			(180,967	)		—			(180,967	)		(50,557	)		(231,524	)
Interim dividends				—		—			(362,660	)		—			(362,660	)		—			(362,660	)
Share option		20		—		(274	)		—			—			(274	)		—			(274	)
Interest on hybrid bonds				—		—			(12,333	)		—			(12,333	)		—			(12,333	)
Redemption of hybrid bonds				—		(400,000	)		—			—			(400,000	)		—			(400,000	)
Issuance of hybrid bonds				—		398,509			—			—			398,509			—			398,509
Transactions of treasury shares		19,20		—		(78,488	)		—			—			(78,488	)		—			(78,488	)
Changes in ownership in subsidiaries, etc.				—		(1,217	)		—			—			(1,217	)		(6,219	)		(7,436	)
			****	—	****	(81,470	)	****	(555,960	)	****	—	****	****	(637,430	)	****	(56,776	)	****	(694,206	)
Balance as of September 30, 2023 (Unaudited)			~~W~~	30,493	****	(11,648,587	)	****	22,828,633	****	****	339,083	****	****	11,549,622	****	****	821,928	****	****	12,371,550	****
Balance as of January 1, 2024			~~W~~	30,493	****	(11,828,644	)	****	22,799,981	****	****	387,216	****	****	11,389,046	****	****	839,353	****	****	12,228,399	****
Total comprehensive income:
Profit for the period				—		—			959,297			—			959,297			32,993			992,290
Other comprehensive income (loss)		10,18,22		—		—			(46,803)			16,720			(30,083)			(535)			(30,618)
				—		—			912,494			16,720			929,214			32,458			961,672
Transactions with owners:
Annual dividends				—		—			(223,335	)		—			(223,335	)		(50,927	)		(274,262	)
Interim dividends				—		—			(353,387	)		—			(353,387	)		—			(353,387	)
Share option		20		—		3,942			—			—			3,942			392			4,334
Interest on hybrid bonds				—		—			(14,850	)		—			(14,850	)		—			(14,850	)
Acquisition and disposal of treasury shares		19,20		—		9,154			—			—			9,154			—			9,154
Retirement of treasury shares		19		—		200,000			(200,000	)		—			—			—			—
Changes in ownership in subsidiaries, etc.				—		3,039			—			—			3,039			(2,695	)		344
				—		216,135			(791,572	)		—			(575,437	)		(53,230	)		(628,667	)
Balance as of September 30, 2024 (Unaudited)			~~W~~	30,493	****	(11,612,509	)	****	22,920,903	****	****	403,936	****	****	11,742,823	****	****	818,581	****	****	12,561,404	****

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

SK TELECOM CO., LTD. and its Subsidiaries

Interim Consolidated Statements of Cash Flows

For the nine-month periods ended September 30, 2024 and 2023

(In millions of won)		2024<br>(Unaudited)			2023<br>(Unaudited)
Cash flows from operating activities:
Cash generated from operating activities:
Profit for the period		~~W~~	992,290			958,495
Adjustments for income and expenses	32		3,512,172			3,441,826
Changes in assets and liabilities related to operating activities	32		(219,653	)		(238,918	)
			4,284,809			4,161,403
Interest received			53,241			40,594
Dividends received			33,363			41,150
Interest paid			(286,097	)		(266,074	)
Income tax paid			(268,920	)		(243,753	)
Net cash provided by operating activities			3,816,396			3,733,320
Cash flows from investing activities:
Cash inflows from investing activities:
Decrease in short-term financial instruments, net			26,161			—
Collection of short-term loans			100,058			103,455
Proceeds from disposals of long-term investment securities			48,414			20,335
Proceeds from disposals of investments in associates and joint ventures			15,130			—
Proceeds from disposals of property and equipment			15,130			9,800
Proceeds from disposals of intangible assets			9,135			688
Proceeds from disposals of non-current assets held for<br>sale			13,031			930
Collection of long-term loans			1,375			1,175
Decrease in deposits			4,877			4,609
Proceeds from settlement of derivatives			489			1,240
			233,800			142,232
Cash outflows for investing activities:
Increase in short-term financial instruments, net			—			(188,001	)
Increase in short-term loans			(94,656	)		(103,809	)
Increase in long-term loans			(11,448	)		(8,936	)
Acquisitions of long-term investment securities			(45,834	)		(315,153	)
Acquisitions of investments in associates and joint ventures			(6,311	)		(15,590	)
Acquisitions of property and equipment			(1,587,094	)		(2,056,005	)
Acquisitions of intangible assets			(32,625	)		(38,741	)
Increase in deposits			(15,102	)		(5,519	)
			(1,793,070	)		(2,731,754	)
Net cash used in investing activities		~~W~~	(1,559,270	)	****	(2,589,522	)

(Continued)

SK TELECOM CO., LTD. and its Subsidiaries

Interim Consolidated Statements of Cash Flows, Continued

For the nine-month periods ended September 30, 2024 and 2023

(In millions of won)	2024<br>(Unaudited)			2023<br>(Unaudited)
Cash flows from financing activities:			****
Cash inflows from financing activities:
Proceeds from short-term borrowings	~~W~~	100,000			—
Proceeds from issuance of debentures		627,405			1,334,147
Proceeds from long-term borrowings		—			49,950
Cash inflows from settlement of derivatives		—			183,090
Proceeds from issuance of hybrid bonds		—			398,509
Transactions with non-controlling shareholders		—			256
		727,405			1,965,952
Cash outflows for financing activities:
Repayments of short-term borrowings, net		—			(130,000	)
Repayments of long-term borrowings		(389,375	)		(18,750	)
Repayments of long-term payables – other		(369,150	)		(400,245	)
Repayments of debentures		(770,000	)		(1,884,190	)
Payments of dividends		(627,230	)		(594,158	)
Redemption of hybrid bonds		—			(400,000	)
Payments of interest on hybrid bonds		(14,850	)		(12,333	)
Repayments of lease liabilities		(287,604	)		(294,436	)
Acquisition of treasury shares		(15,788	)		(98,855	)
Cash outflow from transactions with the non-controlling<br>shareholders		(2,271	)		—
		(2,476,268	)		(3,832,967	)
Net cash used in financing activities	****	(1,748,863	)	****	(1,867,015	)
Net increase (decrease) in cash and cash equivalents	****	508,263	****	****	(723,217	)
Cash and cash equivalents at beginning of the period		1,454,978			1,882,291
Effects of exchange rate changes on cash and cash equivalents		3,092			5,198
Cash and cash equivalents at end of the period	~~W~~	1,966,333	****	****	1,164,272	****

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

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2024 and 2023 (Unaudited)

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 September 30, 2024, the Parent Company’s total issued shares are held by the following shareholders:


SK Inc.	65,668,397	30.57
National Pension Service	17,443,260	8.12
Institutional investors and other shareholders	125,928,198	58.63
Kakao Investment Co., Ltd.	3,846,487	1.79
Treasury shares	1,903,711	0.89
	214,790,053	100.00

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

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2024 and 2023 (Unaudited)

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

The list of consolidated subsidiaries as of September 30, 2024 and December 31, 2023 is as follows:

				*Ownership (%)(1)**
Subsidiary		Location	Primary business	Sep. 30,2024		Dec. 31,2023
Subsidiaries owned by the Parent Company	SK Telink Co., Ltd.	Korea	International telecommunication and<br>Mobile Virtual Network Operator<br>Service		100.0		100.0
	SK Communications Co., Ltd.	Korea	Internet website services		100.0		100.0
	SK Broadband Co., Ltd.	Korea	Fixed-line telecommunication<br>services		74.4		74.4
	PS&Marketing Corporation	Korea	Communications device retail<br>business		100.0		100.0
	SERVICE ACE Co., Ltd.	Korea	Call center management service		100.0		100.0
	SERVICE TOP Co., Ltd.	Korea	Call center management service		100.0		100.0
	SK O&S Co., Ltd.	Korea	Base station maintenance service		100.0		100.0
	SK Telecom China Holdings Co., Ltd.	China	Investment (Holdings company)		100.0		100.0
	SK Global Healthcare Business Group Ltd.	Hong Kong	Investment		100.0		100.0
	YTK Investment Ltd.	Cayman Islands	Investment		100.0		100.0
	Atlas Investment	Cayman Islands	Investment		100.0		100.0
	SK Telecom Americas, Inc.	USA	Information gathering and consulting		100.0		100.0
	Quantum Innovation Fund I(*2)	Korea	Investment		—		59.9
	Happy Hanool Co., Ltd.	Korea	Service		100.0		100.0
	SK stoa Co., Ltd.	Korea	Other telecommunication retail<br>business		100.0		100.0
	SAPEON Inc.	USA	Manufacturing non-memory and<br>other electronic integrated circuits		62.5		62.5
Subsidiaries owned by SK Broadband Co., Ltd.	Home & Service Co., Ltd.	Korea	Operation of information and<br>communication facility		100.0		100.0
	Media S Co., Ltd.	Korea	Production and supply services of<br>broadcasting programs		100.0		100.0
Subsidiary owned by PS&Marketing Corporation	SK m&service Co., Ltd.	Korea	Database and Internet website<br>service		100.0		100.0
Subsidiary owned by SK Telecom Americas, Inc.	Global AI Platform Corporation	USA	Software development and supply<br>business		100.0		100.0
Subsidiary owned by Global AI Platform Corporation	Global AI Platform Corporation Korea	Korea	Software development and supply<br>business		100.0		100.0
Subsidiary owned by Quantum Innovation Fund I	PanAsia Semiconductor Materials LLC.(*2)	Korea	Investment		—		66.4
Subsidiary owned by SAPEON Inc.	SAPEON Korea Inc.	Korea	Manufacturing non-memory and<br>other electronic integrated circuits		100.0		100.0
Others(*3)	SK Telecom Innovation Fund, L.P.	USA	Investment		100.0		100.0
	SK Telecom China Fund I L.P.	Cayman Islands	Investment		100.0		100.0
(*1)	The ownership interest represents direct ownership interest in subsidiaries either by the Parent Company or<br>subsidiaries of the Parent Company.
---	---
(*2)	Details of changes in the consolidation scope for the nine-month period ended September 30, 2024 are<br>presented in note 1-(4).
---	---
(*3)	Others are owned by Atlas Investment and another subsidiary of the Parent Company.
---	---

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2024 and 2023 (Unaudited)

1.	Reporting Entity, Continued
(3)	Condensed financial information of subsidiaries
---	---
1)	The condensed financial information of significant consolidated subsidiaries as of and for the nine-month<br>period ended September 30, 2024 is as follows:
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---	---	---
	As of September 30, 2024						For the nine-month period<br>ended September 30, 2024
Subsidiary	Total assets		Total liabilities		Total equity		Revenue		Profit
SK Telink Co., Ltd.	~~W~~	203,311		57,446		145,865		252,928		11,818
SK Broadband Co., Ltd.		6,533,966		3,435,542		3,098,424		3,292,954		176,562
PS&Marketing Corporation		477,817		247,634		230,183		1,039,333		2,367
SERVICE ACE Co., Ltd.		74,045		46,018		28,027		144,509		3,127
SERVICE TOP Co., Ltd.		57,329		40,245		17,084		125,206		1,032
SK O&S Co., Ltd.		110,600		66,590		44,010		224,825		2,067
Home & Service Co., Ltd.		133,224		97,714		35,510		370,425		4,305
SK stoa Co., Ltd.		109,710		47,775		61,935		220,654		5,123
SK m&service Co., Ltd.		170,210		105,031		65,179		181,392		1,945
2)	The condensed financial information of significant consolidated subsidiaries as of December 31, 2023 and<br>for the nine-month period ended September 30, 2023 is as follows:
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---	---	---
	As of December 31, 2023						For the nine-month period<br>ended September 30, 2023
Subsidiary	Total assets		Total liabilities		Total equity		Revenue		Profit
SK Telink Co., Ltd.	~~W~~	213,920		65,049		148,871		237,065		15,325
SK Broadband Co., Ltd.		6,442,611		3,323,156		3,119,455		3,201,611		172,773
PS&Marketing Corporation		451,549		224,042		227,507		963,953		374
SERVICE ACE Co., Ltd.		83,395		54,888		28,507		149,325		4,147
SERVICE TOP Co., Ltd.		71,196		47,641		23,555		136,460		4,236
SK O&S Co., Ltd.		140,942		98,346		42,596		220,707		4,710
Home & Service Co., Ltd.		165,667		112,025		53,642		364,042		1,253
SK stoa Co., Ltd.		94,041		37,253		56,788		221,287		1,252
SK m&service Co., Ltd.		153,660		88,195		65,465		190,157		2,987
(4)	Changes in subsidiaries
---	---

The list of subsidiaries that were excluded from consolidation scope for the nine-month period ended September 30, 2024 is as follows:

Subsidiary	Reason
Quantum Innovation Fund I	Liquidation
PanAsia Semiconductor Materials LLC.	Liquidation

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2024 and 2023 (Unaudited)

1.	Reporting Entity, Continued
(5)	The financial information of material non-controlling interests of the<br>Group as of September 30, 2024 and December 31, 2023 and for the nine-month periods ended September 30, 2024 and 2023 are as follows:
---	---
(In millions of won)
---	---	---	---
	*SK Broadband Co., Ltd.()**
Ownership of non-controlling interests (%)		25.5
	As of September 30, 2024
Current assets	~~W~~	1,577,417
Non-current assets		5,094,093
Current liabilities		(1,620,068	)
Non-current liabilities		(1,872,046	)
Net assets		3,179,396
Carrying amount of non-controlling interests		810,746
	For the nine-month period ended September 30, 2024
Revenue	~~W~~	3,287,838
Profit for the period		170,275
Total comprehensive income		170,752
Profit attributable to non-controlling interests		45,373
Net cash provided by operating activities	~~W~~	984,462
Net cash used in investing activities		(483,981	)
Net cash used in financing activities		(336,390	)
Effects of exchange rate changes on cash and cash equivalents		(707	)
Net increase in cash and cash equivalents		163,384
Dividends paid to non-controlling interests for the<br>nine-month period ended September 30, 2024	~~W~~	50,927
(*)	The above condensed financial information is the consolidated financial information of the subsidiary and<br>reflects fair value adjustments as a result of the business combination.
---	---

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2024 and 2023 (Unaudited)

1.	Reporting Entity, Continued
(5)	The financial information of material non-controlling interests of the<br>Group as of September 30, 2024 and December 31, 2023 and for the nine-month periods ended September 30, 2024 and 2023 are as follows, Continued:
---	---
(In millions of won)
---	---	---	---
	*SK Broadband Co., Ltd.()**
Ownership of non-controlling interests (%)		25.4
	As of December 31, 2023
Current assets	~~W~~	1,388,965
Non-current assets		5,214,315
Current liabilities		(1,388,317	)
Non-current liabilities		(1,988,989	)
Net assets		3,225,974
Carrying amount of non-controlling interests		819,592
	For the nine-month period<br>ended September 30, 2023
Revenue	~~W~~	3,199,000
Profit for the period		166,519
Total comprehensive income		161,383
Profit attributable to non-controlling interests		41,922
Net cash provided by operating activities	~~W~~	855,107
Net cash used in investing activities		(663,455	)
Net cash used in financing activities		(179,286	)
Effects of exchange rate changes on cash and cash equivalents		452
Net increase in cash and cash equivalents		12,818
Dividends paid to non-controlling interests for the<br>nine-month period ended September 30, 2023	~~W~~	50,557
(*)	The above condensed financial information is the consolidated financial information of the subsidiary and<br>reflects fair value adjustments as a result of the business combination.
---	---

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2024 and 2023 (Unaudited)

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

These interim condensed consolidated financial statements were prepared in accordance with International Financial Reporting Standard as adopted by the Republic of Korea (“KIFRS”) 1034 Interim Financial Reporting as part of the period covered by the Group’s KIFRS annual financial statements. These interim consolidated 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, 2023. The accompanying interim consolidated financial statements have been translated into English from the Korean language financial statements. In the event of any differences in interpreting the financial statements or the independent auditor’s review report thereon, the Korean version, which is used for regulatory reporting purposes, shall prevail.

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

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

In preparing these interim consolidated financial statements, the significant judgments made by management in applying the Group’s accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements as of and for the year ended December 31, 2023.

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2024 and 2023 (Unaudited)

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 is directly reported to the finance executives.

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

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

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

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

The information about assumptions used for fair value measurements is included in Note 29.

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2024 and 2023 (Unaudited)

3.	Material Accounting Policies

The material accounting policies applied by the Group in these interim consolidated financial statements are the same as those applied by the Group in its consolidated financial statements as of and for the year ended December 31, 2023, except for the adoption of new and revised KIFRS applied from January 1, 2024, which are summarized below. The Group has not early applied the new and revised KIFRS and interpretations that have been issued but are not yet effective.

The following new and amended KIFRS and interpretations are effective from January 1, 2024, initially, but these amended standards are not expected to have a material impact on the Group’s interim consolidated financial statements.

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

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2024 and 2023 (Unaudited)

4.	Operating Segments

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

(1)	The segment information for the nine-month periods ended September 30, 2024 and 2023 are as follows:<br>
(In millions of won)
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	For the nine-month period ended September 30, 2024
	Cellular<br>services		Fixed-line<br>telecommunication<br>services		Others			Sub-total		Adjustments			Total
Total revenue	~~W~~	11,117,310		3,930,183		448,648			15,496,141		(2,067,053	)		13,429,088
Inter-segment revenue		1,130,631		889,103		47,319			2,067,053		(2,067,053	)		—
External revenue		9,986,679		3,041,080		401,329			13,429,088		—			13,429,088
Depreciation and amortization		2,015,182		726,338		19,573			2,761,093		(92,845	)		2,668,248
Operating profit (loss)		1,355,093		262,241		(40,247	)		1,577,087		(7,827	)		1,569,260
Finance income and costs, net														(319,090	)
Gain relating to investments in associates and joint ventures, net														24,685
Other non-operating income and expense,<br>net														8,781
Profit before income tax														1,283,636
(In millions of won)
	For the nine-month period ended September 30, 2023
	Cellular<br>services		Fixed-line<br>telecommunication<br>services		Others			Sub-total		Adjustments			Total
Total revenue	~~W~~	10,855,374		3,813,463		451,014			15,119,851		(2,038,631	)		13,081,220
Inter-segment revenue		1,122,041		882,785		33,805			2,038,631		(2,038,631	)		—
External revenue		9,733,333		2,930,678		417,209			13,081,220		—			13,081,220
Depreciation and amortization		2,056,161		727,715		18,286			2,802,162		(93,548	)		2,708,614
Operating profit (loss)		1,216,576		257,570		(20,338	)		1,453,808		2,341			1,456,149
Finance income and costs, net														(193,446	)
Gain relating to investments in associates and joint ventures, net														6,437
Other non-operating income and expense,<br>net														1,644
Profit before income tax														1,270,784

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2024 and 2023 (Unaudited)

4.	Operating Segments, Continued
(1)	The segment information for the nine-month periods ended September 30, 2024 and 2023 are as follows,<br>Continued:
---	---

The Group principally operates its businesses in Korea, and the revenue amounts earned outside of Korea are immaterial. Therefore, no entity-wide geographical information is presented.

No single customer contributed 10% or more to the Group’s total revenue for the nine-month periods ended September 30, 2024 and 2023.

(2)	Disaggregation of operating revenues considering the economic factors that affect the nature, amounts, timing<br>and uncertainty of the Group’s revenue and future cash flows is as follows:
(In millions of won)		For the nine-month period ended
---	---	---	---	---	---
		September 30, 2024		September 30, 2023
Goods and Services transferred at a point in time:
Cellular revenue	Goods and others(*1)	~~W~~	806,197		681,626
Fixed-line telecommunication revenue	Goods and others		52,739		73,939
Other revenue	Others(*2)		343,025		342,010
			1,201,961		1,097,575
Goods and Services transferred over time:
Cellular revenue	Wireless service(*3)		7,807,324		7,733,970
	Cellular interconnection		317,299		324,447
	Other(*4)		1,055,859		993,290
Fixed-line telecommunication revenue	Fixed-line service		118,938		100,963
	Cellular interconnection		11,454		12,099
	Internet Protocol Television(*5)		1,372,256		1,376,059
	International calls		159,562		142,174
	Internet service and miscellaneous(*6)		1,326,131		1,225,444
Other revenue	Miscellaneous(*2)		58,304		75,199
			12,227,127		11,983,645
		~~W~~	13,429,088		13,081,220

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2024 and 2023 (Unaudited)

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

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2024 and 2023 (Unaudited)

5.	Trade and Other Receivables
(1)	Details of trade and other receivables as of September 30, 2024 and December 31, 2023 are as follows:<br>
---	---
(In millions of won)	September 30, 2024
---	---	---	---	---	---	---	---
	Gross<br>amount		Loss<br>allowance			Carrying<br>amount
Current assets:
Accounts receivable – trade	~~W~~	2,390,633		(258,375	)		2,132,258
Short-term loans		79,109		(693	)		78,416
Accounts receivable – other(*)		407,421		(26,829	)		380,592
Accrued income		2,455		—			2,455
Guarantee deposits (Other current assets)		133,229		—			133,229
		3,012,847		(285,897	)		2,726,950
Non-current assets:
Long-term loans		75,778		(41,396	)		34,382
Long-term accounts receivable – other(*)		356,546		(1,878	)		354,668
Guarantee deposits		159,218		(300	)		158,918
Long-term accounts receivable – trade (Other<br>non-current assets)		14,287		(2	)		14,285
		605,829		(43,576	)		562,253
	~~W~~	3,618,676		(329,473	)		3,289,203
(*)	Gross and carrying amounts of accounts receivable – other as of September 30, 2024 include<br>~~W~~364,933 million of financial instruments classified as fair value through profit or loss (“FVTPL”).
---	---
(In millions of won)	December 31, 2023
---	---	---	---	---	---	---	---
	Gross<br>amount		Loss<br>allowance			Carrying<br>amount
Current assets:
Accounts receivable – trade	~~W~~	2,221,266		(242,734	)		1,978,532
Short-term loans		78,824		(695	)		78,129
Accounts receivable – other(*)		375,748		(31,398	)		344,350
Accrued income		4,295		—			4,295
Guarantee deposits (Other current assets)		129,357		—			129,357
		2,809,490		(274,827	)		2,534,663
Non-current assets:
Long-term loans		71,847		(41,392	)		30,455
Long-term accounts receivable – other(*)		314,409		(1,878	)		312,531
Guarantee deposits		157,163		(300	)		156,863
Long-term accounts receivable – trade (Other<br>non-current assets)		12,320		(3	)		12,317
		555,739		(43,573	)		512,166
	~~W~~	3,365,229		(318,400	)		3,046,829
(*)	Gross and carrying amounts of accounts receivable – other as of December 31, 2023 include<br>~~W~~273,945 million of financial instruments classified as fair value through profit or loss (“FVTPL”).
---	---

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2024 and 2023 (Unaudited)

5.	Trade and Other Receivables, Continued
(2)	Changes in the loss allowance on trade and other receivables measured at amortized cost for the nine-month<br>periods ended September 30, 2024 and 2023 are as follows:
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---	---	---	---
	January 1,<br>2024		Impairment		*Write-offs()**			Collection ofreceivablespreviouslywritten-off		September 30,<br>2024
Accounts receivable – trade	~~W~~	242,737		33,658		(24,487	)		6,469		258,377
Accounts receivable – other, etc.		75,663		2,913		(8,447	)		967		71,096
	~~W~~	318,400		36,571		(32,934	)		7,436		329,473
(In millions of won)
	January 1,<br>2023		Impairment		*Write-offs()**			Collection ofreceivablespreviouslywritten-off		September 30,<br>2023
Accounts receivable – trade	~~W~~	234,923		27,965		(22,257	)		8,036		248,667
Accounts receivable – other, etc.		90,079		4,788		(13,277	)		6,006		87,596
	~~W~~	325,002		32,753		(35,534	)		14,042		336,263
(*)	The Group writes off trade and other receivables that are determined to be uncollectable due to reasons such as<br>termination of operations or bankruptcy.
---	---
(3)	The Group applies the practical expedient that allows the Group to estimate the loss allowance for accounts<br>receivable – trade at an amount equal to the lifetime expected credit losses. The expected credit losses include the forward-looking information. To make the assessment, the Group uses its historical credit loss experience over the past three<br>years and classifies the accounts receivable – trade by their credit risk characteristics and days overdue.
---	---

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

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

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2024 and 2023 (Unaudited)

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, and recognizes costs that would not occur in case of not signing contracts with new and existing customers as prepaid expenses among the commissions. These prepaid expenses are amortized on a straight-line basis over the periods that the Group expects to maintain its customers.

(1)	Details of prepaid expenses as of September 30, 2024 and December 31, 2023 are as follows:<br>
(In millions of won)
---	---	---	---	---
	September 30, 2024		December 31, 2023
Current assets:
Incremental costs of obtaining contracts	~~W~~	1,896,839		1,882,296
Others		80,375		71,473
	~~W~~	1,977,214		1,953,769
Non-current assets:
Incremental costs of obtaining contracts	~~W~~	1,033,366		1,022,813
Others		65,216		63,294
	~~W~~	1,098,582		1,086,107
(2)	Incremental costs of obtaining contracts
---	---

The amortization and impairment losses in connection with incremental costs of obtaining contracts recognized as an asset for the three and nine-month periods ended September 30, 2024 and 2023 are as follows:

(In millions of won)	2024				2023
	Three-monthperiod ended<br>September 30		Nine-month<br>period endedSeptember 30		Three-month<br>period ended<br>September 30		Nine-month<br>period endedSeptember 30
Amortization and impairment losses recognized	~~W~~	622,333		1,860,285		620,492		1,868,048

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2024 and 2023 (Unaudited)

7.	Contract Assets and Liabilities

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

(1)	Details of contract assets and liabilities as of September 30, 2024 and December 31, 2023 are as follows:<br>
(In millions of won)
---	---	---	---	---
	September 30, 2024		December 31, 2023
Contract assets:
Allocation of consideration between performance obligations	~~W~~	137,662		129,771
Contract liabilities:
Wireless service contracts		20,092		19,149
Customer loyalty programs		5,713		7,164
Fixed-line service contracts		146,264		146,106
Others		54,940		40,074
	~~W~~	227,009		212,493
(2)	The amounts of revenue recognized for the nine-month periods ended<br>September 30, 2024 and 2023 related to the contract liabilities carried forward from the prior periods are ~~W~~94,886 million and ~~W~~115,026 million, respectively.
---	---
8.	Inventories
---	---
(1)	Details of inventories as of September 30, 2024 and December 31, 2023 are as follows:<br>
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	September 30, 2024							December 31, 2023
	Acquisitioncost		Valuationallowance			Carryingamount		Acquisitioncost		Valuationallowance			Carryingamount
Merchandise	~~W~~	189,481		(7,018	)		182,463		174,255		(7,641	)		166,614
Supplies		39,871		—			39,871		13,195		—			13,195
	~~W~~	229,352		(7,018	)		222,334		187,450		(7,641	)		179,809
(2)	Inventories recognized as operating expenses for the nine-month periods ended September 30, 2024 and 2023<br>are ~~W~~980,840 million and ~~W~~893,964 million, respectively, which are included in cost of goods sold. In addition, valuation losses on inventories which are included in the cost of goods sold and other<br>operating expenses amount to ~~W~~163 million and ~~W~~1,790 million for the nine-month periods ended September 30, 2024 and 2023, respectively. Write-offs included in other operating expenses for the<br>nine-month period ended September 30, 2024 and 2023 are ~~W~~34 million and ~~W~~19 million, respectively.
---	---

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2024 and 2023 (Unaudited)

9.	Long-Term Investment Securities

Details of long-term investment securities as of September 30, 2024 and December 31, 2023 are as follows:

(In millions of won)
	Category	September 30, 2024		December 31, 2023
Equity instruments	FVOCI(*)	~~W~~	1,456,323		1,398,734
	FVTPL		8		8
			1,456,331		1,398,742
Debt<br><br><br>instruments	FVTPL		141,860		280,642
			141,860		280,642
		~~W~~	1,598,191		1,679,384
(*)	The Group designated investments in equity instruments that are not held for trading as financial assets at<br>FVOCI, and the amounts of those equity instruments as of September 30, 2024 and December 31, 2023 are ~~W~~1,456,323 million and ~~W~~1,398,734 million, respectively.
---	---

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2024 and 2023 (Unaudited)

10.	Investments in Associates and Joint Ventures
(1)	Investments in associates and joint ventures accounted for using the equity method as of September 30, 2024 and<br>December 31, 2023 are as follows:
---	---
(In millions of won)			September 30, 2024				December 31, 2023
---	---	---	---	---	---	---	---	---	---	---
	Country		Ownership<br>(%)		Carryingamount		Ownership(%)		Carryingamount
Investments in associates:
SK China Company Ltd.		China		27.3	~~W~~	909,274		27.3	~~W~~	896,990
Korea IT Fund(*1)		Korea		63.3		339,443		63.3		336,404
UniSK		China		49.0		23,238		49.0		22,285
SK Technology Innovation<br><br><br>Company		Cayman<br>Islands		49.0		77,858		49.0		70,409
SK MENA Investment B.V.		Netherlands		32.1		16,113		32.1		14,872
SK Latin America Investment S.A.		Spain		32.1		14,877		32.1		14,607
SK South East Asia Investment Pte. Ltd.		Singapore		20.0		360,136		20.0		355,282
Citadel Pacific Telecom Holdings, LLC(*2)		USA		15.0		48,611		15.0		45,901
SM Culture & Contents Co., Ltd.(*3)		Korea		22.8		39,869		22.8		41,578
Nam Incheon Broadcasting Co., Ltd.		Korea		27.3		15,074		27.3		14,344
Home Choice Corp.(*2)		Korea		17.8		3,129		17.8		3,215
Konan Technology Inc.		Korea		20.7		2,992		20.7		6,349
CMES Inc.(*2,4)		Korea		8.4		4,733		7.7		900
SK telecom Japan Inc.		Japan		33.0		1,239		33.0		1,239
12CM JAPAN and others(*2,5,6,7,8,9)		—		—		88,217		—		81,142
					~~W~~	1,944,803			~~W~~	1,905,517
Investments in joint ventures:
UTC Kakao-SK Telecom ESG Fund(*10)		Korea		48.2		9,340		48.2		9,495
						9,340				9,495
					~~W~~	1,954,143			~~W~~	1,915,012

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2024 and 2023 (Unaudited)

10.	Investments in Associates and Joint Ventures, Continued
(1)	Investments in associates and joint ventures accounted for using the equity method as of September 30,<br>2024 and December 31, 2023 are as follows, Continued:
---	---
(*1)	Investment in Korea IT Fund was classified as investment in associates as the Group does not have control over<br>the investee under the contractual agreement with other shareholders.
---	---
(*2)	These investments were classified as investments in associates as the Group can exercise significant influence<br>through its right to appoint the members of the Board of Directors even though the Group has less than 20% of equity interests.
---	---
(*3)	The Group recognized an impairment loss of ~~W~~18,755 million as the recoverable amount was<br>assessed to be less than the carrying amount for the year ended December 31, 2023.
---	---
(*4)	The Group additionally acquired ~~W~~8,984 million of shares by exercising the conversion<br>right of the redeemable convertible preference shares, and disposed of a portion of shares for ~~W~~14,872 million in cash, from which it recognized ~~W~~10,476 million of gain on disposal of such investments in<br>associates for the nine-month period ended September 30, 2024. The ownership interest of the Group increased from 7.7% to 8.4% due to the acquisition and disposal of shares.
---	---
(*5)	The Group additionally contributed ~~W~~5,878 million to SK AMERICAS Inc. (formerly, SK USA,<br>Inc.) for the nine-month period ended September 30, 2024, and the ownership interest of the Group has decreased from 49.0% to 20.0% due to the paid-in capital increase through disproportionate allotment of<br>shares.
---	---
(*6)	The Group disposed of a portion of shares in Start-up Win-Win Fund for ~~W~~200 million in cash for the nine-month period ended September 30, 2024.
---	---
(*7)	The Group additionally contributed ~~W~~162 million of investment in SK VENTURE CAPITAL, LLC<br>in cash and ~~W~~271 million of investment in WALDEN SKT VENTURE FUND for the nine-month period ended September 30, 2024, but there are no changes in the ownership interest.
---	---
(*8)	The Group additionally contributed ~~W~~20 million of investments in F&U Credit<br>information Co., Ltd. for the nine-month period ended September 30, 2024, but there is no change in the ownership interest.
---	---
(*9)	The Group received ~~W~~58 million from the liquidation of Wave City Co., Ltd. and recognized<br>~~W~~58 million of gain relating to investments in associates for the nine-month period ended September 30, 2024.
---	---
(*10)	These investments were classified as investment in joint ventures as the Group has a joint control pursuant to<br>the agreement with the other shareholders.
---	---

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2024 and 2023 (Unaudited)

10.	Investments in Associates and Joint Ventures, Continued
(2)	The market values of investments in listed associates as of September 30, 2024 and December 31, 2023<br>are as follows:
---	---
(In millions of won, except for share data)
---	---	---	---	---	---	---	---	---	---	---	---	---
	September 30, 2024						December 31, 2023
	Market priceper share<br>(in won)		Number ofshares		Marketvalue		Market price<br>per share<br>(in won)		Number ofshares		Marketvalue
SM Culture & Contents Co., Ltd.	~~W~~	1,726		22,033,898		38,031		1,887		22,033,898		41,578
Konan Technology Inc.		15,190		2,359,160		35,836		32,600		2,359,160		76,909
(3)	The condensed financial information of material associates as of September 30, 2024 and December 31,<br>2023 and for the nine-month periods ended September 30, 2024 and 2023 are as follows:
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---
	As of September 30, 2024
	Korea IT<br>Fund		SK China<br>Company Ltd.			SK South East AsiaInvestment Pte. Ltd.
Current assets	~~W~~	129,368		1,455,630			1,069,265
Non-current assets		406,594		1,946,738			2,036,818
Current liabilities		—		52,662			550,351
Non-current liabilities		—		316,189			13,392
	For the nine-month period ended September 30, 2024
Revenue	~~W~~	14,515		50,024			53,550
Profit (loss) for the period		1,850		35,400			(166	)
Other comprehensive income (loss)		10,930		(30,054	)		5,848
Total comprehensive income		12,780		5,346			5,682
(In millions of won)
	As of December 31, 2023
	Korea IT<br>Fund		SK China<br>Company Ltd.			SK South East AsiaInvestment Pte. Ltd.
Current assets	~~W~~	128,344		1,350,607			213,522
Non-current assets		402,819		1,987,252			3,034,553
Current liabilities		—		99,083			502,728
Non-current liabilities		—		252,100			13,586
	For the nine-month period ended September 30, 2023
Revenue	~~W~~	14,122		53,739			55,767
Profit (loss) for the period		3,523		26,038			(32,477	)
Other comprehensive income		4,318		37,552			715
Total comprehensive income (loss)		7,841		63,590			(31,762	)

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2024 and 2023 (Unaudited)

10.	Investments in Associates and Joint Ventures, Continued
(4)	Reconciliations of the financial information of material associates to carrying amounts of investments in<br>associates in the consolidated financial statements as of September 30, 2024 and December 31, 2023 are as follows:
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---	---	---
	September 30, 2024
	Net assets		Ownershipinterests (%)		Net assetsattributable tothe ownershipinterests		Cost-book valuedifferentials		Carrying amount
Korea IT Fund	~~W~~	535,962		63.3		339,443		—		339,443
SK China Company Ltd.		3,033,517		27.3		827,277		81,997		909,274
SK South East Asia<br><br><br>Investment Pte. Ltd.(*)		1,800,681		20.0		360,136		—		360,136
(In millions of won)
	December 31, 2023
	Net assets		Ownershipinterests (%)		Net assetsattributable tothe ownershipinterests		Cost-book valuedifferentials		Carrying amount
Korea IT Fund	~~W~~	531,163		63.3		336,404		—		336,404
SK China Company Ltd.		2,986,676		27.3		814,503		82,487		896,990
SK South East Asia<br><br><br>Investment Pte. Ltd.(*)		1,776,411		20.0		355,282		—		355,282
(*)	Net assets of these entities represent net assets excluding those attributable to their non-controlling interests.
---	---

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2024 and 2023 (Unaudited)

10.	Investments in Associates and Joint Ventures, Continued
(5)	Details of the changes in investments in associates and joint ventures accounted for using the equity method<br>for the nine-month periods ended September 30, 2024 and 2023 are as follows:
---	---
(In millions of won)	For the nine-month period ended September 30, 2024
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	Beginning<br>balance		Acquisition<br>and disposal			Share of<br>profit<br>(loss)			Other<br>compre-hensive<br>income (loss)			Otherchanges			Endingbalance
Investments in associates:
SK China Company Ltd.	~~W~~	896,990		—			4,812			7,472			—			909,274
Korea IT Fund(*1)		336,404		—			1,172			6,922			(5,055	)		339,443
UniSK		22,285		—			(242	)		1,195			—			23,238
SK Technology Innovation Company		70,409		—			5,945			1,504			—			77,858
SK MENA Investment B.V.		14,872		—			921			320			—			16,113
SK Latin America Investment S.A.		14,607		—			(206	)		476			—			14,877
SK South East Asia Investment Pte. Ltd.		355,282		—			2,146			2,708			—			360,136
Citadel Pacific Telecom Holdings, LLC		45,901		—			(31	)		2,741			—			48,611
SM Culture & Contents Co., Ltd.		41,578		(3	)		(1,577	)		(129	)		—			39,869
Nam Incheon Broadcasting Co., Ltd.(*1)		14,344		—			865			—			(135	)		15,074
Home Choice Corp.		3,215		—			(86	)		—			—			3,129
Konan Technology Inc.		6,349		—			(3,357	)		—			—			2,992
CMES Inc.		900		(4,396	)		(810	)		55			8,984			4,733
SK telecom Japan Inc.		1,239		—			—			—			—			1,239
12CM JAPAN and others(*1,2)		81,142		5,963			1,653			49			(590	)		88,217
		1,905,517		1,564			11,205			23,313			3,204			1,944,803
Investments in joint ventures:
UTC Kakao-SK Telecom ESG Fund		9,495		—			(155	)		—			—			9,340
		9,495		—			(155	)		—			—			9,340
	~~W~~	1,915,012		1,564			11,050			23,313			3,204			1,954,143
(*1)	Dividends received from the associates are deducted from the carrying amount for the nine-month period ended<br>September 30, 2024.
---	---
(*2)	The acquisition for the nine-month period ended September 30, 2024 includes<br>~~W~~5,878 million of investment in SK AMERICAS Inc. (formerly, SK USA, Inc.), ~~W~~162 million of investment in SK VENTURE CAPITAL, LLC., ~~W~~271 million of investment in WALDEN SKT VENTURE<br>FUND and ~~W~~20 million of investment in F&U Credit information Co., Ltd. The disposal for the nine-month period ended September 30, 2024 includes a portion of shares in SK AMERICAS Inc. (formerly, SK USA, Inc.) for<br>~~W~~167 million and a portion of Start-up Win-Win Fund for ~~W~~200 million.
---	---

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2024 and 2023 (Unaudited)

10.	Investments in Associates and Joint Ventures, Continued
(5)	Details of the changes in investments in associates and joint ventures accounted for using the equity method<br>for the nine-month periods ended September 30, 2024 and 2023 are as follows, Continued:
---	---
(In millions of won)	For the nine-month period ended September 30, 2023
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	Beginning<br>balance		Acquisition<br>and disposal			Share of<br>profit<br>(loss)			Other<br>compre-hensive<br>income			Other<br>changes			Ending<br>balance
Investments in associates:
SK China Company Ltd.	~~W~~	879,527		—			3,275			39,665			—			922,467
Korea IT Fund(*1)		324,860		—			2,231			2,735			(2,165	)		327,661
UniSK(*1)		20,839		—			1,131			523			(735	)		21,758
SK Technology Innovation Company		69,375		—			1,304			4,287			—			74,966
SK MENA Investment B.V.		14,296		—			661			881			—			15,838
SK Latin America Investment S.A.		11,961		—			1,355			622			—			13,938
SK South East Asia Investment Pte. Ltd.		357,537		—			(5,094	)		21,630			—			374,073
Citadel Pacific Telecom Holdings, LLC(*1)		48,542		—			1,937			2,047			(3,965	)		48,561
SM Culture & Contents Co., Ltd.		59,611		(653	)		218			803			—			59,979
Nam Incheon Broadcasting Co., Ltd.(*1)		13,575		—			704			—			(136	)		14,143
Home Choice Corp.		4,456		—			(1,335	)		—			—			3,121
Konan Technology Inc.		8,366		—			(2,388	)		—			—			5,978
CMES Inc.		900		—			—			—			—			900
12CM JAPAN and others(*1,2)		69,734		13,590			3,253			(2,171	)		(111	)		84,295
		1,883,579		12,937			7,252			71,022			(7,112	)		1,967,678
Investments in joint ventures:
UTC Kakao-SK Telecom ESG Fund		5,710		2,000			(161	)		—			—			7,549
		5,710		2,000			(161	)		—			—			7,549
	~~W~~	1,889,289		14,937			7,091			71,022			(7,112	)		1,975,227
(*1)	Dividends received from the associates are deducted from the carrying amount for the nine-month period ended<br>September 30, 2023.
---	---
(*2)	The acquisition for the nine-month period ended September 30, 2023 includes<br>~~W~~6,500 million of investment in Telecom Daean Evaluation Jun B Corporation Co., Ltd. (formerly, Telecom Daean Evaluation Co., Ltd. (tentative)), ~~W~~6,000 million of investment in KB ESG Fund of three<br>telecommunications companies, ~~W~~215 million of investment in KDX Korea Data Exchange, ~~W~~95 million of investment in SK VENTURE CAPITAL, LLC, ~~W~~260 million of investment in WALDEN SKT<br>VENTURE FUND and ~~W~~520 million of investment in Covet Co., Ltd.
---	---

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2024 and 2023 (Unaudited)

10.	Investments in Associates and Joint Ventures, Continued
(6)	The Group discontinued the application of equity method to the following investees due to their carrying<br>amounts being reduced to zero. Details of cumulative unrecognized equity method losses as of September 30, 2024 are as follows:
---	---
(In millions of won)	Unrecognized loss				Unrecognized change in equity
---	---	---	---	---	---	---	---	---	---	---
	For the nine-monthperiod ended<br>September 30, 2024		Cumulativeloss		For the nine-monthperiod ended<br>September 30, 2024			Cumulativeloss
Invites Genomics Co., Ltd.	~~W~~	12,111		19,956		(135	)		1,044
Daehan Kanggun BcN Co., Ltd. and others		—		5,187		—			(124	)
	~~W~~	12,111		25,143		(135	)		920

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2024 and 2023 (Unaudited)

11.	Property and Equipment

Changes in property and equipment for the nine-month periods ended September 30, 2024 and 2023 are as follows:

(In millions of won)
	For the nine-month period ended September 30, 2024
	Beginning<br>balance		Acquisition		Disposal			Transfer			Depreciation			Ending<br>balance
Land	~~W~~	1,248,200		11		(322	)		18,714			—			1,266,603
Buildings		773,392		1,045		(272	)		42,122			(42,344	)		773,943
Structures		234,879		1,129		(78	)		5,989			(29,276	)		212,643
Machinery		7,890,654		266,842		(2,958	)		1,026,239			(1,701,797	)		7,478,980
Other		485,157		270,213		(11,277	)		(293,198	)		(63,723	)		387,172
Right-of-use<br>assets		1,611,951		246,155		(45,963	)		(21,702	)		(299,457	)		1,490,984
Construction in progress		761,963		638,608		(1,316	)		(892,615	)		—			506,640
	~~W~~	13,006,196		1,424,003		(62,186	)		(114,451	)		(2,136,597	)		12,116,965
(In millions of won)
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	For the nine-month period ended September 30, 2023
	Beginning<br>balance		Acquisition		Disposal			Transfer			Depreciation			Ending<br>balance
Land	~~W~~	1,005,857		3		(388	)		234,790			—			1,240,262
Buildings		785,225		248		(140	)		35,879			(40,480	)		780,732
Structures		265,656		493		(189	)		4,479			(28,974	)		241,465
Machinery		7,912,900		283,344		(3,123	)		1,224,722			(1,725,669	)		7,692,174
Other		497,394		344,405		(502	)		(346,203	)		(67,654	)		427,440
Right-of-use<br>assets		1,786,129		267,181		(61,014	)		(21,400	)		(307,118	)		1,663,778
Construction in progress		1,069,331		843,177		(27	)		(1,302,641	)		—			609,840
	~~W~~	13,322,492		1,738,851		(65,383	)		(170,374	)		(2,169,895	)		12,655,691

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2024 and 2023 (Unaudited)

12.	Investment Property
(1)	Changes in investment property for the nine-month periods ended September 30, 2024 and 2023 are as follows:<br>
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---	---	---
	For the nine-month period ended September 30, 2024
	Beginning balance		Transfer			Depreciation			Ending balance
Land	~~W~~	14,199		(1,278	)		—			12,921
Buildings		10,242		(194	)		(651	)		9,397
Right-of-use<br>assets		10,371		134			(1,191	)		9,314
	~~W~~	34,812		(1,338	)		(1,842	)		31,632
(In millions of won)
---	---	---	---	---	---	---	---	---	---
	For the nine-month period ended September 30, 2023
	Beginning balance		Transfer		Depreciation			Ending balance
Land	~~W~~	6,115		8,128		—			14,243
Buildings		6,884		4,612		(1,188	)		10,308
Right-of-use<br>assets		12,138		473		(1,565	)		11,046
	~~W~~	25,137		13,213		(2,753	)		35,597
(2)	The Group recognized lease income of ~~W~~4,743 million and<br>~~W~~4,727 million from investment property for the nine-month periods ended September 30, 2024 and 2023, respectively.
---	---

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2024 and 2023 (Unaudited)

13.	Leases
(1)	Details of the right-of-use<br>assets as of September 30, 2024 and December 31, 2023 are as follows:
---	---
(In millions of won)
---	---	---	---	---
	September 30, 2024		December 31, 2023
Right-of-use<br>assets:
Land, buildings and structures	~~W~~	1,258,584		1,376,721
Others		232,400		235,230
	~~W~~	1,490,984		1,611,951
(2)	Details of amounts recognized in the interim consolidated statements of income for the nine-month periods ended<br>September 30, 2024 and 2023 as a lessee are as follows:
---	---
(In millions of won)
---	---	---	---	---
	For the nine-month period ended
	September 30, 2024		September 30, 2023
Depreciation of<br>right-of-use assets:
Land, buildings and structures	~~W~~	250,843		259,949
Others(*)		48,614		47,169
		299,457		307,118
Interest expense on lease liabilities	~~W~~	34,364		34,925
(*)	Others include the amount reclassified as research and development expenses related to the lease contract for<br>research and development facilities.
---	---

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

(3)	The total cash outflows due to lease payments for the nine-month periods ended September 30, 2024 and 2023<br>amounted to ~~W~~344,967 million and ~~W~~343,541 million, respectively.

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2024 and 2023 (Unaudited)

14.	Intangible Assets
(1)	Changes in intangible assets for the nine-month periods ended September 30, 2024 and 2023 are as follows:<br>
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	For the nine-month period ended September 30, 2024
	Beginningbalance		Acquisition		Disposal			Transfer		Amortization			Impairment			Endingbalance
Frequency usage rights	~~W~~	1,606,606		—		—			—		(353,295	)		—			1,253,311
Land usage rights		587		70		(5	)		—		(291	)		—			361
Industrial rights		46,154		4,814		(240	)		—		(3,690	)		—			47,038
Development costs		49		—		—			—		(17	)		—			32
Facility usage rights		14,313		1,050		(1	)		496		(2,330	)		—			13,528
Customer relations		273,150		—		—			—		(20,273	)		—			252,877
Club memberships(*1)		97,186		3,596		(6,735	)		—		—			—			94,047
Other(*2)		823,092		23,899		(1,483	)		94,703		(253,551	)		(2	)		686,658
	~~W~~	2,861,137		33,429		(8,464	)		95,199		(633,447	)		(2	)		2,347,852
(In millions of won)
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	For the nine-month period ended September 30, 2023
	Beginningbalance		Acquisition		Disposal			Transfer		Amortization			Impairment			Endingbalance
Frequency usage rights	~~W~~	2,082,432		—		—			—		(358,061	)		—			1,724,371
Land usage rights		1,224		100		—			—		(678	)		—			646
Industrial rights		51,792		4,397		—			—		(3,396	)		—			52,793
Development costs		284		—		—			—		(222	)		(1	)		61
Facility usage rights		14,997		1,266		(11	)		1,065		(2,710	)		—			14,607
Customer relations		300,181		—		—			—		(20,273	)		—			279,908
Club memberships(*1)		91,971		4,428		(663	)		65		—			—			95,801
Other(*2)		782,029		28,830		(1,286	)		134,853		(252,393	)		(511	)		691,522
	~~W~~	3,324,910		39,021		(1,960	)		135,983		(637,733	)		(512	)		2,859,709
(*1)	Club memberships are classified as intangible assets with indefinite useful lives and are not amortized.<br>
---	---
(*2)	Other intangible assets primarily consist of computer software and others.
---	---

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2024 and 2023 (Unaudited)

14.	Intangible Assets, Continued
(2)	Details of frequency usage rights as of September 30, 2024 are as follows:
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---
	Amount		Description		Commencementof amortization		Completion ofamortization
800 MHz license	~~W~~	76,852		LTE service		Jul. 2021		Jun. 2026
1.8 GHz license		229,197		LTE service		Dec. 2021		Dec. 2026
2.6 GHz license		273,185		LTE service		Sept. 2016		Dec. 2026
2.1 GHz license		172,253		W-CDMA and LTE service		Dec. 2021		Dec. 2026
3.5 GHz license		501,824		5G service		Apr. 2019		Nov. 2028
	~~W~~	1,253,311
15.	Borrowings and Debentures
---	---
(1)	Short-term borrowings as of September 30, 2024 and December 31, 2023 are as follows:
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---
Lender	Annual<br>interest rate (%)		Maturity		September 30,<br>2024		December 31,<br>2023
KB SECURITIES CO.,LTD.		3.64		Oct. 10, 2024	~~W~~	100,000		—
(2)	Changes in long-term borrowings for the nine-month period ended September 30, 2024 are as follows:<br>
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---
	Lender	Annual<br>interest rate (%)		Maturity		Book value
Current						~~W~~	402,500
Non-current							315,578
As of January 1, 2024							718,078
Repayments of long-term borrowings:
	Credit Agricole CIB		3.30		Apr. 29, 2024		(50,000	)
	Mizuho Bank, Ltd.		1.35		May. 20, 2024		(100,000	)
	DBS Bank Ltd.		1.32		May. 28, 2024		(200,000	)
	Nonghyup Bank(*1,2)		MOR + 1.36		Nov. 17, 2024		(30,000	)
	Korea Development Bank(*3)		1.87		Feb. 10, 2026		(9,375	)
							(389,375	)
Other changes(*4)							20
Current(*5)							272,473
Non-current(*5)							56,250
As of September 30, 2024						~~W~~	328,723

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2024 and 2023 (Unaudited)

15.	Borrowings and Debentures, Continued
(2)	Changes in long-term borrowings for the nine-month period ended September 30, 2024 are as follows, Continued:<br>
---	---
(*1)	6M MOR rates are 3.40% and 3.85% as of September 30, 2024 and December 31, 2023, respectively.<br>
---	---
(*2)	The long-term borrowings are to be repaid by installments on quarterly basis during 2024.<br>
---	---
(*3)	The long-term borrowings are to be repaid by installments on an annual basis from 2022 to 2026.<br>
---	---
(*4)	Other changes include the effects on changes in present value discount for the nine-month period ended<br>September 30, 2024.
---	---
(*5)	~~W~~259,375 million were reclassified from<br>non-current to current for the nine-month period ended September 30, 2024.
---	---

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2024 and 2023 (Unaudited)

15.	Borrowings and Debentures, Continued
(3)	Changes in debentures for the nine-month period ended September 30, 2024 are as follows:<br>
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---	---	---	---
	Purpose	Annual interestrate (%)		Maturity		Face value			Book value
Current						~~W~~	1,220,000			1,219,344
Non-current							7,131,291			7,106,299
As of January 1, 2024							8,351,291			8,325,643
Debentures newly issued:
Unsecured corporate bonds	Refinancing fund		3.72		Feb. 22, 2027		180,000			179,233
Unsecured corporate bonds	Refinancing fund		3.73		Feb. 22, 2029		110,000			109,536
Unsecured corporate bonds	Refinancing fund		3.92		Feb. 22, 2034		110,000			109,535
Unsecured corporate bonds(*1)	Refinancing fund		3.89		Jan. 22, 2027		170,000			169,341
Unsecured corporate bonds(*1)	Refinancing fund		3.93		Jan. 22, 2029		60,000			59,760
							630,000			627,405
Debentures repaid:
Unsecured corporate bonds	Operating fund		2.09		Mar. 6, 2024		(120,000	)		(120,000	)
Unsecured corporate bonds	Refinancing fund		1.17		Jan. 15, 2024		(80,000	)		(80,000	)
Unsecured corporate bonds	Operating fund		3.64		May. 14, 2024		(150,000	)		(150,000	)
Unsecured corporate bonds	Operating and refinancing fund		1.49		Jul. 29, 2024		(60,000	)		(60,000	)
Unsecured corporate bonds(*1)	Refinancing fund		2.09		Mar. 26, 2024		(160,000	)		(160,000	)
Unsecured corporate bonds(*1)	Operating and refinancing fund		1.71		Sep. 24, 2024		(100,000	)		(100,000	)
Unsecured corporate bonds(*1)	Refinancing fund		1.69		Jul. 12, 2024		(100,000	)		(100,000	)
							(770,000	)		(770,000	)
Other changes(*2)							32,392			44,031
Current(*3)							2,209,963			2,212,194
Non-current(*3)							6,033,720			6,014,885
As of September 30, 2024						~~W~~	8,243,683			8,227,079
(*1)	Unsecured corporate bonds were issued by SK Broadband Co., Ltd., a subsidiary of the Parent Company.<br>
---	---
(*2)	Other changes include the effects on foreign currency translation of debentures and changes in discount on<br>issuance of debentures for the nine-month period ended September 30, 2024.
---	---
(*3)	~~W~~1,761,792 million was reclassified from<br>non-current to current for the nine-month period ended September 30, 2024.
---	---

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2024 and 2023 (Unaudited)

16.	Long-term Payables – other
(1)	As of September 30, 2024 and December 31, 2023, details of long-term payables – other which<br>consist of payables related to the acquisition of frequency usage rights are as follows (See Note 14):
---	---
(In millions of won)
---	---	---	---	---	---	---
	September 30,<br>2024			December 31,2023
Long-term payables – other	~~W~~	921,075			1,290,225
Present value discount on long-term payables – other		(17,164	)		(29,772	)
Current portion of long-term payables – other		(366,161	)		(367,770	)
Carrying amount at period end	~~W~~	537,750			892,683
(2)	The sum of portions repaid among the principal of long-term payables – other for the nine-month periods<br>ended September 30, 2024 and 2023 amounts to ~~W~~369,150 million and ~~W~~400,245 million, respectively. The repayment schedule of the principal amount of long-term payables – other as of<br>September 30, 2024 is as follows:
---	---
(In millions of won)
---	---	---
	Amount
Less than 1 year	~~W~~	369,150
1~3 years		460,538
3~5 years		91,387
	~~W~~	921,075

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2024 and 2023 (Unaudited)

17.	Provisions

Changes in provisions for the nine-month periods ended September 30, 2024 and 2023 are as follows:

(In millions of won)
	For the nine-month period ended September 30, 2024														As of September 30, 2024
	Beginningbalance		Increase		Utilization			Reversal			Other		Endingbalance		Current		Non-current
Provision for restoration	~~W~~	120,024		4,445		(2,118)			(628	)		3		121,726		41,823		79,903
Emission allowance		1,182		994		(130	)		(2,024	)		—		22		22		—
Other provisions		218		—		—			(218	)		—		—		—		—
	~~W~~	121,424		5,439		(2,248	)		(2,870	)		3		121,748		41,845		79,903
(In millions of won)
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	For the nine-month period ended September 30, 2023															As of September 30, 2023
	Beginningbalance		Increase		Utilization			Reversal			Other			Endingbalance		Current		Non-current
Provision for restoration	~~W~~	115,089		6,899		(1,766	)		(625	)		7			119,604		36,518		83,086
Emission allowance		2,186		2,073		(635	)		(2,508	)		—			1,116		1,116		—
Other provisions		1,823		—		(1,105	)		(7	)		(26	)		685		466		219
	~~W~~	119,098		8,972		(3,506	)		(3,140	)		(19	)		121,405		38,100		83,305
18.	Defined Benefit Liabilities (Assets)
---	---
(1)	Details of defined benefit liabilities (assets) as of September 30, 2024 and December 31, 2023 are as<br>follows:
---	---
(In millions of won)
---	---	---	---	---	---	---
	September 30, 2024			December 31, 2023
Present value of defined benefit obligations	~~W~~	1,161,540			1,121,679
Fair value of plan assets		(1,277,100	)		(1,292,416	)
Defined benefit assets(*)		(128,213	)		(170,737	)
Defined benefit liabilities		12,653			—
(*)	Since the Group entities neither have legally enforceable right nor intention to settle the defined benefit<br>obligations of the Group entities with defined benefit assets of other Group entities, defined benefit assets of the Group entities have been separately presented from defined benefit liabilities.
---	---

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2024 and 2023 (Unaudited)

18.	Defined Benefit Liabilities (Assets), Continued
(2)	Changes in present value of defined benefit obligations for the<br>nine-month periods ended September 30, 2024 and 2023 are as follows:
---	---
(In millions of won)	For the nine-month period ended
---	---	---	---	---	---	---
	September 30, 2024			September 30, 2023
Beginning balance	~~W~~	1,121,679			1,038,320
Current service cost		98,070			98,891
Interest cost		35,456			40,081
Remeasurement
- Demographic assumption		—			1,168
- Financial assumption		3,449			2,392
- Adjustment based on experience		(17,683	)		(8,566	)
Benefit paid		(90,685	)		(66,839	)
Others		11,254			6,905
Ending balance	~~W~~	1,161,540			1,112,352
(3)	Changes in fair value of plan assets for the nine-month periods ended September 30, 2024 and 2023 are as<br>follows:
---	---
(In millions of won)	For the nine-month period ended
---	---	---	---	---	---	---
	September 30, 2024			September 30, 2023
Beginning balance	~~W~~	1,292,416			1,214,007
Interest income		40,660			45,993
Remeasurement		2,583			700
Contributions		41,200			53,001
Benefit paid		(104,016	)		(74,347	)
Others		4,257			841
Ending balance	~~W~~	1,277,100			1,240,195
(4)	The total cost of defined benefit plan, which is recognized in profit or loss for the nine-month periods ended<br>September 30, 2024 and 2023 is as follows:
---	---
(In millions of won)	For the nine-month period ended
---	---	---	---	---	---	---
	September 30, 2024			September 30, 2023
Current service cost	~~W~~	98,070			98,891
Net interest income		(5,204	)		(5,912	)
	~~W~~	92,866			92,979

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2024 and 2023 (Unaudited)

19.	Share Capital and Capital Surplus and Others
(1)	The Parent Company’s outstanding share capital consists of shares with a par value of<br>~~W~~100. The number of authorized, issued and outstanding common shares and details of share capital and capital surplus and others as of September 30, 2024 and December 31, 2023 are as follows:
---	---
(In millions of won, except for share data)
---	---	---	---	---	---	---
	September 30, 2024			December 31, 2023
Number of authorized shares		670,000,000			670,000,000
Number of issued shares		214,790,053			218,833,144
Share capital:
Common shares(*1)	~~W~~	30,493			30,493
Capital surplus and others:
Paid-in surplus		1,771,000			1,771,000
Treasury shares(*1)		(92,962	)		(301,981	)
Hybrid bonds(*2)		398,509			398,509
Share option(Note 20)		13,682			9,818
Others(*3)		(13,702,738	)		(13,705,990	)
	~~W~~	(11,612,509	)		(11,828,644	)
(*1)	The Parent Company retired 4,043,091 treasury shares with reduction of its unappropriated retained earnings,<br>and accordingly, the Parent Company’s shares issued have decreased without a change in share capital for the nine-month period ended September 30, 2024. Also, in 2002 and 2003, the Parent Company retired treasury shares with reduction of<br>its retained earnings before appropriation, and as a result, the Parent Company’s issued shares have decreased without a change in share capital.
---	---
(*2)	As there is no contractual obligation to deliver financial assets to the holders of hybrid bonds, the Parent<br>Company classified the hybrid bonds as equity. When in liquidation or bankruptcy, these hybrid bonds are senior only to common shares.
---	---
(*3)	Others primarily consist of the excess of the consideration paid by the Group over the carrying amount of net<br>assets acquired from entities under common control.
---	---

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2024 and 2023 (Unaudited)

19.	Share Capital and Capital Surplus and Others, Continued
(2)	There were no changes in share capital for the nine-month periods ended September 30, 2024 and 2023, and<br>details of shares outstanding as of September 30, 2024 and 2023 are as follows:
---	---
(In shares)	September 30, 2024						September 30, 2023
---	---	---	---	---	---	---	---	---	---	---	---	---
	Issued<br>shares		Treasuryshares		Outstandingshares		Issued<br>shares		Treasuryshares		Outstandingshares
Shares outstanding		214,790,053		1,903,711		212,886,342		218,833,144		2,420,246		216,412,898
(3)	Details of treasury shares as of September 30, 2024 and December 31, 2023 are as follows:<br>
---	---
(In millions of won, except for share data)
---	---	---	---	---
	September 30, 2024		December 31, 2023
Number of shares(*)		1,903,711		6,133,414
Acquisition cost	~~W~~	92,962		301,981
(*)	The Parent Company distributed 503,612 treasury shares (acquisition cost: ~~W~~24,807 million) as<br>bonus payment to its employees, resulting in a gain on disposal of treasury shares of ~~W~~181 million for the nine-month period ended September 30, 2024. Also, the Parent Company acquired 317,000 of its treasury shares for<br>~~W~~15,788 million for the purpose of increasing shareholders’ value through the stabilization of its stock price for the nine-month period ended September 30, 2024.
---	---

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2024 and 2023 (Unaudited)

20.	Share-based payment arrangement
20.1	Share-based payment arrangement of the Parent Company
---	---
(1)	The terms and conditions related to the grants of the share-based payment arrangement are as follows:<br>
---	---
1)	Share-based payment arrangements with cash alternatives
---	---
	Series
---	---	---	---	---	---	---
	5		6		*7-1()**	7-2
Grant date		March 26, 2020		March 25, 2021	March 25, 2022
Types of shares to be issued		Registered common shares of the Parent Company
Grant method		Reissue of treasury shares, Cash settlement
Number of shares (in share)		376,313		83,148	98,425	109,704
Exercise price (in won)		38,452		50,276	56,860	56,860
Exercise period		Mar. 27, 2023<br>~<br>Mar. 26, 2027		Mar. 26, 2023<br>~<br>Mar. 25, 2026	Mar. 26, 2025<br>~<br>Mar. 25, 2029	Mar. 26, 2024<br>~<br>Mar. 25, 2027
Vesting<br><br><br>conditions		3 years’<br> <br>service from the<br>grant date		2 years’<br> <br>service from the<br>grant date	2 years’<br> <br>service from the<br>grant date	2 years’<br> <br>service from the<br>grant date
(*)	For the nine-month period ended September 30, 2024, 196,850 shares of stock options granted in the 7^th^-1^^series were canceled.
---	---

For the nine-month period ended September 30, 2024, the entire amount of remaining stock options granted in the 4^th^ series and some portions of stock options granted in the 3^rd^ and 6^th^ series were exercised, and the entire amount of remaining stock options granted in the 1^s^^t^-3 and 3^rd^ series was fully forfeited.

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

The entire amount of remaining share appreciation rights for shares of SK Telecom Co., Ltd. and SK Square Co., Ltd. granted in 2021 was fully exercised for the nine-month period ended September 30, 2024.

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2024 and 2023 (Unaudited)

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

The Parent Company newly established Performance Share Units (“PSU”) for executives of the Parent Company and major subsidiaries as part of the compensation based on the growth of corporate value for the nine-month period ended September 30, 2024 and for the year ended December 31, 2023, and the details are as follows:

	PSU of SK Telecom Co., Ltd.
Grant date	March 28, 2023	March 26, 2024
Types of shares to be issued	Registered common shares of the Parent Company
Grant method	Reissue of treasury shares
Number of shares(*)	Fluctuates according to the share price on the expiration date and the cumulative increase rate of KOSPI200
Reference share price (in won)	47,280	52,720
Reference index (KOSPI200)	315	362
Maturity (exercise date)	The day in which the annual general meeting of shareholders is held after 3 years from the grant date
Vesting conditions	Full service in the year in which the grant date is included
(*)	The initial amount granted is a total of ~~W~~10,813 million for 2023 and<br>~~W~~12,835 million for 2024, and the amount calculated according to the adjustment rate based on the share price on the expiration date and the cumulative increase rate of KOSPI200 will be paid in shares.
---	---
(2)	Share compensation expense for share-based payment arrangements with cash alternatives recognized for the nine-month period ended September 30, 2024 and the remaining share compensation expense to be recognized in subsequent periods are as follows:
---	---
(In millions of won)
---	---	---
	Share compensation expense
As of December 31, 2023	~~W~~	157,750
For the nine-month period ended September 30, 2024		953
In subsequent periods		—
	~~W~~	158,703

The liabilities recognized by the Parent Company in relation to the share-based payment arrangement with cash alternatives are ~~W~~7,840 million and ~~W~~5,530 million, respectively, which are included in accrued expenses as of September 30, 2024 and December 31, 2023.

As of September 30, 2024 and December 31, 2023, the carrying amounts of liabilities recognized by the Parent Company in relation to the cash-settled share-based payment arrangement are ~~W~~209 million and ~~W~~1,133 million, respectively.

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2024 and 2023 (Unaudited)

20.	Share-based payment arrangement, Continued
20.1	Share-based payment arrangement of the Parent Company, Continued:
---	---
(3)	The Parent Company used binomial option pricing model in the measurement of the fair value of the share options<br>at remeasurement date, and the inputs used in the model are as follows:
---	---
1)	Share-based payment arrangement with cash alternatives
---	---
(i)	SK Telecom Co., Ltd.
---	---
(In won)	Series
---	---	---	---	---	---	---	---	---	---	---	---	---
	5			6			7-1			7-2
Risk-free interest rate		2.83	%		2.87	%		2.91	%		2.83	%
Estimated option’s life		7 years			5 years			7 years			5 years
Share price on the remeasurement date		55,900			55,900			55,900			55,900
Expected volatility		15.80	%		15.80	%		15.80	%		15.80	%
Expected dividends yield		6.33	%		6.33	%		6.33	%		6.33	%
Exercise price		38,452			50,276			56,860			56,860
Per-share fair value of the option		17,448			6,219			3,980			3,330
(ii)	SK Square Co., Ltd.
---	---
(In won)	Series
---	---	---	---	---	---	---
	5			6
Risk-free interest rate		1.52	%		1.55	%
Estimated option’s life		7 years			5 years
Share price<br>(Closing price on the preceding day)		34,900			49,800
Expected volatility		8.10	%		25.70	%
Expected dividends yield		5.70	%		4.00	%
Exercise price		38,452			50,276
Per-share fair value of the option		192			8,142

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2024 and 2023 (Unaudited)

20.	Share-based payment arrangement, Continued
20.1	Share-based payment arrangement of the Parent Company, Continued:
---	---
(3)	The Parent Company used binomial option pricing model in the measurement of the fair value of the share options<br>at remeasurement date, and the inputs used in the model are as follows:
---	---
2)	Cash-settled share-based payment arrangement
---	---
(In won)	Granted in 2022
---	---	---	---
	Share appreciation rights of<br>SK Telecom Co., Ltd.
Risk-free interest rate		2.95	%
Estimated option’s life		3.25 years
Share price on the remeasurement date		55,900
Expected volatility		15.80	%
Expected dividends yield		6.33	%
Exercise price		56,860
Per-share fair value of the option		1,599
3)	Equity-settled share-based payment arrangement
---	---
(In won)	Granted in 2023<br>PSU of SK Telecom Co., Ltd.			Granted in 2024<br>PSU of SK Telecom Co., Ltd.
---	---	---	---	---	---	---
Risk-free interest rate		3.26	%		3.30	%
Estimated option’s life		3 years			3 years
Share price on the grant date		48,500			54,100
Expected volatility		18.67	%		15.95	%
Expected dividends yield		4.90	%		5.40	%
Per-share fair value of the option		27,525			29,200

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2024 and 2023 (Unaudited)

20.	Share-based payment arrangement, Continued
20.2	Share-based payment arrangement by SAPEON Inc., a subsidiary of the Parent Company
---	---
(1)	The terms and conditions related to the grants of the share-based payment arrangement are as follows:<br>
---	---
	Series
---	---	---	---
	1-1	1-2	2
Grant date	February 28, 2023		November 13, 2023
Types of shares to be issued	Registered common shares of SAPEON Inc.
Grant method	Issuance of shares
Number of shares (in share)	1,500	24,700	6,150
Exercise price (in U.S. dollars)		100.0
Exercise period(*)	Jan. 4, 2024<br> ~<br>Jan. 4, 2032	Apr. 1, 2024<br> ~<br>Apr. 1, 2032	Feb. 1, 2025<br> <br>~<br><br><br>Feb. 1, 2033
Vesting<br><br><br>conditions	2 years’ service from the commencement date, 50%<br><br><br>3 years’ service from the commencement date, 25%<br><br><br>4 years’ service from the commencement date, 25%
(*)	The exercise periods vary as vesting periods for each share-based payment arrangement are different. The<br>exercise period was disclosed based on the vesting period with the highest number of grants.
---	---
(2)	Share compensation expenses for share-based payment arrangements for the nine-month period ended<br>September 30, 2024 and the remaining share compensation expenses to be recognized in subsequent periods are as follows:
---	---
(In millions of won)
---	---	---
	Share compensation expense
As of December 31, 2023	~~W~~	2,555
For the nine-month period ended September 30, 2024		392
In subsequent periods		—
	~~W~~	2,947
(3)	SAPEON Inc., a subsidiary of the Parent Company, used binomial option pricing model in the measurement of the<br>fair value of the share options at grant date and the inputs used in the model are as follows:
---	---
(In U.S. dollars)	Series
---	---	---	---	---	---	---	---	---	---
	1-1			1-2			2
Risk-free interest rate		4.18	%		4.16	%		4.67	%
Estimated option’s life		5.18 years			5.42 years			5.55 years
Underlying share price		107.8			107.8			118.1
Expected volatility		43.50	%		43.00	%		43.00	%
Expected dividends yield		0.00	%		0.00	%		0.00	%
Exercise price		100.0			100.0			100.0
Per-share fair value of the option		50.7			51.4			61.4

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2024 and 2023 (Unaudited)

21.	Retained Earnings

Retained earnings as of September 30, 2024 and December 31, 2023 are as follows:

(In millions of won)
	September 30, 2024		December 31, 2023
Appropriated:
Legal reserve	~~W~~	22,320		22,320
Reserve for business expansion		9,981,138		9,831,138
Reserve for technology development		4,715,300		4,565,300
		14,696,438		14,396,438
Unappropriated		8,202,145		8,381,223
	~~W~~	22,920,903		22,799,981
22.	Reserves
---	---
(1)	Details of reserves, net of taxes, as of September 30, 2024 and December 31, 2023 are as follows:<br>
---	---
(In millions of won)
---	---	---	---	---	---	---
	September 30, 2024			December 31, 2023
Valuation gain on FVOCI	~~W~~	160,588			176,208
Other comprehensive income of investments in associates and joint ventures		205,499			182,702
Valuation loss on derivatives		(1,777	)		(1,488	)
Foreign currency translation differences for foreign operations		39,626			29,794
	~~W~~	403,936			387,216
(2)	Changes in reserves for the nine-month periods ended September 30, 2024 and 2023 are as follows:<br>
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---	---	---	---	---	---
	Valuation gain(loss) on financialassets at FVOCI			Othercomprehensiveincome ofinvestments inassociates and<br>joint ventures		Valuation gain(loss) onderivatives			Foreign currency<br>translationdifferences forforeign operations		Total
Balance as of January 1, 2023	~~W~~	173,281			173,477		14,463			30,012		391,233
Changes, net of taxes		(121,796	)		67,391		(11,228	)		13,483		(52,150	)
Balance as of September 30, 2023	~~W~~	51,485			240,868		3,235			43,495		339,083
Balance as of January 1, 2024	~~W~~	176,208			182,702		(1,488	)		29,794		387,216
Changes, net of taxes		(15,620	)		22,797		(289	)		9,832		16,720
Balance as of September 30, 2024	~~W~~	160,588			205,499		(1,777	)		39,626		403,936

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2024 and 2023 (Unaudited)

23.	Other Operating Expenses

Details of other operating expenses for the three and nine-month periods ended September 30, 2024 and 2023 are as follows:

(In millions of won)	2024				2023
	Three-monthperiod endedSeptember 30		Nine-monthperiod endedSeptember 30		Three-monthperiod endedSeptember 30			Nine-monthperiod endedSeptember 30
Communication	~~W~~	8,428		25,135		8,097			24,199
Utilities		147,357		407,858		143,427			374,644
Taxes and dues		4,419		37,357		(5,602	)		25,316
Repair		103,512		320,805		105,938			311,568
Research and development		102,404		288,814		90,489			251,970
Training		7,715		21,233		10,553			27,201
Bad debt for accounts receivable – trade		9,130		33,658		8,307			27,965
Travel		3,925		14,566		4,812			15,764
Supplies and others		27,052		81,161		28,756			90,946
	~~W~~	413,942		1,230,587		394,777			1,149,573
24.	Other Non-Operating Income and Expenses
---	---

Details of other non-operating income and expenses for the three and nine-month periods ended September 30, 2024 and 2023 are as follows:

(In millions of won)	2024				2023
	Three-monthperiod endedSeptember 30		Nine-monthperiod endedSeptember 30		Three-monthperiod endedSeptember 30		Nine-monthperiod endedSeptember 30
Other Non-operating Income:
Gain on disposal of property and<br><br><br>equipment and intangible assets	~~W~~	3,065		11,245		3,835		15,477
Others		5,345		20,737		4,758		13,445
	~~W~~	8,410		31,982		8,593		28,922
Other Non-operating Expenses:
Loss on impairment of property and equipment and intangible assets	~~W~~	—		2		43		512
Loss on disposal of property and<br><br><br>equipment and intangible assets		4,497		8,721		1,860		4,869
Donations		1,594		9,898		1,796		12,462
Bad debt for accounts receivable – other		583		2,913		2,127		4,788
Others		1,131		1,667		1,548		4,647
	~~W~~	7,805		23,201		7,374		27,278

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2024 and 2023 (Unaudited)

25.	Finance Income and Costs
(1)	Details of finance income and costs for the three and nine-month periods ended September 30, 2024 and 2023<br>are as follows:
---	---
(In millions of won)	2024					2023
---	---	---	---	---	---	---	---	---	---	---
	Three-monthperiod endedSeptember 30			Nine-monthperiod endedSeptember 30		Three-monthperiod endedSeptember 30			Nine-monthperiod endedSeptember 30
Finance Income:
Interest income	~~W~~	20,382			59,835		16,411			48,679
Dividends		5,294			27,982		5,178			35,440
Gain on foreign currency transactions		4,525			14,822		3,732			14,436
Gain on foreign currency translations		(2,316	)		1,791		1,702			3,069
Gain relating to financial instruments<br><br><br>at FVTPL		991			19,236		(7,004	)		82,450
	~~W~~	28,876			123,666		20,019			184,074
(In millions of won)	2024					2023
	Three-monthperiod endedSeptember 30			Nine-monthperiod endedSeptember 30		Three-monthperiod endedSeptember 30			Nine-monthperiod endedSeptember 30
Finance Costs:
Interest expenses	~~W~~	97,470			301,584		97,600			286,516
Loss on sale of accounts receivable – other		7,382			28,426		14,101			48,595
Loss on foreign currency transactions		7,110			14,467		3,549			16,879
Loss on foreign currency translations		(40	)		2,860		667			1,949
Loss relating to financial instruments<br><br><br>at FVTPL		95,353			95,419		3			23,581
	~~W~~	207,275			442,756		115,920			377,520
(2)	Details of interest income included in finance income for the three and nine-month periods ended<br>September 30, 2024 and 2023 are as follows:
---	---
(In millions of won)	2024				2023
---	---	---	---	---	---	---	---	---
	Three-monthperiod endedSeptember 30		Nine-monthperiod endedSeptember 30		Three-monthperiod endedSeptember 30		Nine-monthperiod endedSeptember 30
Interest income on cash equivalents and financial instruments	~~W~~	13,602		39,878		8,883		26,402
Interest income on loans and others		6,780		19,957		7,528		22,277
	~~W~~	20,382		59,835		16,411		48,679

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2024 and 2023 (Unaudited)

25.	Finance Income and Costs, Continued
(3)	Details of interest expenses included in finance costs for the three and nine-month periods ended<br>September 30, 2024 and 2023 are as follows:
---	---
(In millions of won)	2024				2023
---	---	---	---	---	---	---	---	---
	Three-monthperiod endedSeptember 30		Nine-monthperiod endedSeptember 30		Three-monthperiod endedSeptember 30		Nine-monthperiod endedSeptember 30
Interest expense on borrowings	~~W~~	7,072		24,029		8,483		22,954
Interest expense on debentures		67,848		206,077		61,514		179,261
Others		22,550		71,478		27,603		84,301
	~~W~~	97,470		301,584		97,600		286,516
(4)	Details of impairment losses for financial assets for the three and nine-month periods ended September 30, 2024<br>and 2023 are as follows:
---	---
(In millions of won)	2024				2023
---	---	---	---	---	---	---	---	---
	Three-monthperiod endedSeptember 30		Nine-monthperiod endedSeptember 30		Three-monthperiod endedSeptember 30		Nine-monthperiod endedSeptember 30
Accounts receivable – trade	~~W~~	9,130		33,658		8,307		27,965
Other receivables		583		2,913		2127		4,788
	~~W~~	9,713		36,571		10,434		32,753
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.

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2024 and 2023 (Unaudited)

27.	Earnings per Share

Earnings per share is calculated to 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
1)	Basic earnings per share for the three and nine-month periods ended September 30, 2024 and 2023 are<br>calculated as follows:
---	---
(In millions of won, except for share data and basic earnings per share)
---	---	---	---	---	---	---	---	---	---	---	---	---
	2024						2023
	Three-monthperiod endedSeptember 30			Nine-monthperiod endedSeptember 30			Three-monthperiod endedSeptember 30			Nine-monthperiod endedSeptember 30
Basic earnings per share attributable to owners of the ParentCompany:												****
Profit attributable to owners of the Parent Company	~~W~~	268,905			959,297			297,923			917,612
Interest on hybrid bonds		(4,950	)		(14,850	)		(4,950	)		(12,333	)
Profit attributable to owners of the Parent Company on common shares		263,955			944,447			292,973			905,279
Weighted average number of common shares outstanding		212,886,342			212,835,311			217,694,070			218,138,543
Basic earnings per share (in won)	~~W~~	1,240			4,437			1,346			4,150
2)	The weighted average number of common shares outstanding for the three and nine-month periods ended September<br>30, 2024 and 2023 are calculated as follows:
---	---
(In shares)	Number ofcommon shares				Weighted average number of<br>common shares
---	---	---	---	---	---	---	---	---	---	---
				Three-month periodended September 30				Nine-month periodended September 30
Issued shares as of January 1, 2024		218,833,144				218,833,144			218,833,144
Treasury shares as of January 1, 2024		(6,133,414	)			(6,133,414	)		(6,133,414	)
Acquisition of treasury shares		(317,000	)			(317,000	)		(314,748	)
Disposal of treasury shares		503,612				503,612			450,329
		212,886,342				212,886,342			212,835,311
(In shares)	Number ofcommon shares				Weighted average number of<br>common shares
---	---	---	---	---	---	---	---	---	---	---
				Three-month periodended September 30				Nine-month periodended September 30
Issued shares as of January 1, 2023		218,833,144				218,833,144			218,833,144
Treasury shares as of January 1, 2023		(801,091	)			(801,091	)		(801,091	)
Acquisition of treasury shares		(2,060,242	)			(779,070	)		(262,544	)
Disposal of treasury shares		441,087				441,087			369,034
		216,412,898				217,694,070			218,138,543

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2024 and 2023 (Unaudited)

27.	Earnings per Share, Continued
(2)	Diluted earnings per share
---	---
1)	Diluted earnings per share for the three and nine-month periods ended September 30, 2024 and 2023 are<br>calculated as follows:
---	---
(In millions of won, except for share data and diluted earnings per share)
---	---	---	---	---	---	---	---	---
	2024				2023
	Three-monthperiod endedSeptember 30		Nine-monthperiod endedSeptember 30		Three-monthperiod endedSeptember 30		Nine-monthperiod endedSeptember 30
Profit attributable to owners of the Parent Company on common shares	~~W~~	263,955		944,447		292,973		905,279
Adjusted weighted average number of common shares outstanding		213,479,404		213,414,191		217,764,355		218,210,241
Diluted earnings per share (in won)	~~W~~	1,236		4,425		1,345		4,149
2)	The adjusted weighted average number of common shares outstanding for the three and nine-month periods ended<br>September 30, 2024 and 2023 are calculated as follows:
---	---
(In shares)
---	---	---	---	---	---	---	---	---	---
	2024				2023
	Three-monthperiod endedSeptember 30		Nine-monthperiod endedSeptember 30		Three-monthperiod endedSeptember 30			Nine-monthperiod endedSeptember 30
Outstanding shares as of January 1		212,699,730		212,699,730		218,032,053			218,032,053
Effect of treasury shares		186,612		135,581		(337,983	)		106,490
Effect of share option		593,062		578,880		70,285			71,698
Adjusted weighted average number of common shares outstanding		213,479,404		213,414,191		217,764,355			218,210,241

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2024 and 2023 (Unaudited)

28.	Categories of Financial Instruments
(1)	Financial assets by category as of September 30, 2024 and December 31, 2023 are as follows:<br>
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---	---	---
	September 30, 2024
	Financialassets at<br>FVTPL		Equityinstruments<br>at FVOCI		Financial assets atamortized cost		Derivativeshedginginstrument		Total
Cash and cash equivalents	~~W~~	506,089		—		1,460,244		—		1,966,333
Financial instruments		35,988		—		235,071		—		271,059
Long-term investment securities(*)		141,868		1,456,323		—		—		1,598,191
Accounts receivable – trade		—		—		2,146,543		—		2,146,543
Loans and other receivables		364,933		—		776,996		—		1,141,929
Derivative financial assets		31,835		—		—		131,905		163,740
	~~W~~	1,080,713		1,456,323		4,618,854		131,905		7,287,795
(*)	The Group designated ~~W~~1,456,323 million of equity instruments that are not held for<br>trading as financial assets at FVOCI.
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---	---	---
	December 31, 2023
	Financial assetsat<br>FVTPL		Equityinstrumentsat FVOCI		Financial assets atamortized cost		Derivativeshedginginstrument		Total
Cash and cash equivalents	~~W~~	313,340		—		1,141,638		—		1,454,978
Financial instruments		62,364		—		232,945		—		295,309
Long-term investment securities(*)		280,650		1,398,734		—		—		1,679,384
Accounts receivable – trade		—		—		1,990,849		—		1,990,849
Loans and other receivables		273,945		—		781,157		—		1,055,102
Derivative financial assets		32,324		—		—		116,210		148,534
	~~W~~	962,623		1,398,734		4,146,589		116,210		6,624,156
(*)	The Group designated ~~W~~1,398,734 million of equity instruments that are not held for<br>trading as financial assets at FVOCI.
---	---

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2024 and 2023 (Unaudited)

28.	Categories of Financial Instruments, Continued
(2)	Financial liabilities by category as of September 30, 2024 and December 31, 2023 are as follows:<br>
---	---
(In millions of won)	September 30, 2024
---	---	---	---	---	---	---
	Financial liabilitiesat FVTPL		Financial liabilities<br>at amortizedcost		Total
Accounts payable – trade	~~W~~	—		165,485		165,485
Derivative financial liabilities		391,265		—		391,265
Borrowings		—		428,723		428,723
Debentures		—		8,227,079		8,227,079
Lease liabilities(*)		—		1,507,763		1,507,763
Accounts payable - other and others		—		3,715,187		3,715,187
	~~W~~	391,265		14,044,237		14,435,502
(In millions of won)	December 31, 2023
---	---	---	---	---	---	---	---	---
	Financial liabilitiesat FVTPL		Financial liabilities<br>at amortized cost		Derivatives hedginginstrument		Total
Accounts payable – trade	~~W~~	—		139,876		—		139,876
Derivative financial liabilities		295,876		—		9,212		305,088
Borrowings		—		718,078		—		718,078
Debentures		—		8,325,643		—		8,325,643
Lease liabilities(*)		—		1,611,433		—		1,611,433
Accounts payable - other and others		—		4,539,838		—		4,539,838
	~~W~~	295,876		15,334,868		9,212		15,639,956
(*)	The categorization of financial liabilities is not applicable to lease liabilities, but they are classified as<br>financial liabilities measured at amortized cost, considering the nature of measuring liabilities.
---	---

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2024 and 2023 (Unaudited)

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

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

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

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

The Group incurs exchange position due to revenues and expenses from its global operations. Major foreign currencies where currency risk exists are USD, EUR and others. The Group determines its currency risk management policy after considering the nature of business and the presence of methods that mitigate the currency risk on each Group entity basis. The Group regularly evaluates, manages and reports foreign exchange exposure risk through the management systems to receivables and payables denominated in foreign currencies. Currency risk occurs on forecasted transactions and recognized assets and liabilities which are denominated in a currency other than the functional currency of each group entity.

Monetary assets and liabilities denominated in foreign currencies as of September 30, 2024 are as follows:

(In millions of won, thousands of foreign currencies)
				Liabilities
		Won equivalent		Foreign currencies		Won equivalent
	98,015	~~W~~	129,341		1,032,246	~~W~~	1,362,152
	11,716		17,271		58		85
Others	—		188		—		1
		~~W~~	146,800			~~W~~	1,362,238

All values are in US Dollars.

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

As of September 30, 2024, a hypothetical change in exchange rates by 10% would have increased (decreased) the Group’s profit before income tax and equity as follows:

(In millions of won)
					Equity
		If decreased by 10%			If increased by 10%		If decreased by 10%
	7,997		(7,997	)	~~W~~	7,997		(7,997	)
	1,718		(1,718	)		1,718		(1,718	)
Others	19		(19	)		19		(19	)
	9,734		(9,734	)	~~W~~	9,734		(9,734	)

All values are in Euros.

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2024 and 2023 (Unaudited)

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

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

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

As of September 30, 2024, floating-rate borrowings and debentures amount to ~~W~~60,000 million and ~~W~~395,880 million, respectively, and the Group has entered into interest rate swaps to hedge interest rate risk related to the floating-rate debentures. Therefore, profit before income tax for the nine-month period ended September 30, 2024 would not have been affected by the changes in interest rates of floating-rate debentures.

If the interest rate increases (decreases) 1%p with all other variables held constant, profit before income tax and equity for the nine-month period ended September 30, 2024 would change by ~~W~~450 million in relation to the floating-rate borrowings which have not entered into interest rate swaps.

As of September 30, 2024, the floating-rate long-term payables – other are ~~W~~921,075 million. If the interest rate increases (decreases) 1%p with all other variables held constant, profit before income tax and equity for the nine-month period ended September 30, 2024, would change by ~~W~~6,908 million in relation to the floating-rate long-term payables – other that are exposed to interest rate risk.

(iii)	Price fluctuations risk

As of September 30, 2024, the Group holds equity instruments in an active trading market and is exposed to price fluctuation risk accordingly. Assuming all other variables remain constant, the impact of changes in per-share stock price of the equity securities on profit before income tax and equity for the nine-month period ended September 30, 2024 is as follows.


Profit before income tax				Equity
If increased by 10%		If decreased by 10%		If increased by 10%		If decreased by 10%
~~W~~	—		—	~~W~~	75,035		(75,035	)

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2024 and 2023 (Unaudited)

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

The maximum credit exposure as of September 30, 2024 and December 31, 2023 is as follows:

(In millions of won)
	September 30, 2024		December 31, 2023
Cash and cash equivalents	~~W~~	1,966,093		1,454,773
Financial instruments		271,059		295,309
Accounts receivable – trade		2,146,543		1,990,849
Contract assets		137,662		129,771
Loans and other receivables		1,141,929		1,055,102
Derivative financial assets		163,740		148,534
	~~W~~	5,827,026		5,074,338

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 establishes a loss allowance in respect of accounts receivable – trade. The main components of this allowance are a specific loss component that relates to individually significant exposures and a collective loss component established for groups of similar assets in respect of losses that are expected to occur. The collective loss allowance is determined based on historical data of collection statistics for similar financial assets. Also, the Group’s credit risk can arise from transactions with financial institutions related to its cash and cash equivalents, financial instruments and derivatives. To minimize such risk, the Group has a policy to deal only with financial institutions with high credit ratings. The amount of maximum exposure to credit risk of the Group is the carrying amount of financial assets as of September 30, 2024.

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2024 and 2023 (Unaudited)

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

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

Contractual maturities of financial liabilities as of September 30, 2024 are as follows:

(In millions of won)
	Carryingamount		Contractualcash flows		Less than<br>1 year		1 - 5 years		More than<br>5 years
Accounts payable – trade	~~W~~	165,485		165,485		165,485		—		—
Borrowings(*)		428,723		437,246		380,343		56,903		—
Debentures(*)		8,227,079		9,317,953		2,480,276		4,675,754		2,161,923
Lease liabilities		1,507,763		1,766,953		396,166		940,027		430,760
Accounts payable – other and others(*)		3,715,187		3,776,730		3,196,029		580,651		50
	~~W~~	14,044,237		15,464,367		6,618,299		6,253,335		2,592,733
(*)	The contractual cash flow is amount that includes interest payables.
---	---

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

As of September 30, 2024, periods in which cash flows from cash flow hedge derivatives are expected to occur are as follows:

(In millions of won)
	Carrying<br>amount		Contractual<br>cash flows		Less than1 year		1 - 5 years
Assets	~~W~~	131,905		138,120		54,329		83,791

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2024 and 2023 (Unaudited)

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

The Group manages its capital to ensure that it will be able to continue as a going concern while maximizing the return to shareholders through the optimization of its debt and equity structure. The overall strategy of the Group is the same as that of the Group as of and for the year ended December 31, 2023.

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

The Group’s debt-equity ratios as of September 30, 2024 and December 31, 2023 are as follows:

(In millions of won)
	September 30, 2024			December 31, 2023
Total liabilities	~~W~~	16,911,366			17,890,828
Total equity		12,561,404			12,228,399
Debt-equity ratios		134.63	%		146.31	%
(3)	Fair value
---	---

1) The fair value and carrying amount of financial assets and liabilities including fair value hierarchy as of September 30, 2024 are as follows:

(In millions of won)	September 30, 2024
	Carryingamount		Level 1		Level 2		Level 3		Total
Financial assets that are measured at fair value:
FVTPL	~~W~~	1,080,713		—		907,010		173,703		1,080,713
Derivative hedging instruments		131,905		—		131,905		—		131,905
FVOCI		1,456,323		1,003,799		—		452,524		1,456,323
	~~W~~	2,668,941		1,003,799		1,038,915		626,227		2,668,941
Financial liabilities that are measured at fair value:
FVTPL	~~W~~	391,265		—		95,389		295,876		391,265
Financial liabilities that are not measured at fair value:
Borrowings	~~W~~	428,723		—		429,277		—		429,277
Debentures		8,227,079		—		8,277,008		—		8,277,008
Long-term payables – other		903,911		—		924,199		—		924,199
	~~W~~	9,559,713		—		9,630,484		—		9,630,484

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2024 and 2023 (Unaudited)

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

2) The fair value and carrying amount of financial assets and liabilities including fair value hierarchy as of December 31, 2023 are as follows:

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

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

The 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 to 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 September 30, 2024 are as follows:

	Interest rate
Derivative instruments	2.21% ~ 6.25%
Borrowings and debentures	3.32% ~ 18.12%
Long-term payables – other	3.27% ~ 3.33%

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2024 and 2023 (Unaudited)

29.	Financial Risk Management, Continued
(3)	Fair value, Continued
---	---
3)	There have been no transfers between Level 1 and Level 2 for the nine-month period ended September<br>30, 2024. The changes in financial assets and liabilities classified as Level 3 for the nine-month period ended September 30, 2024 are as follows:
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	Balance as of<br>January 1, 2024			Gain		OCI		Acquisition		Disposal			Transfer			Balance as of<br>September 30, 2024
Financial assets																		****
FVTPL	~~W~~	312,974			16,546		1,058		3,895		(3,242	)		(157,528	)		173,703
FVOCI		262,902			—		2,839		41,794		(3,565	)		148,554			452,524
	~~W~~	575,876			16,546		3,897		45,689		(6,807	)		(8,974	)		626,227
Financial liabilities
FVTPL	~~W~~	(295,876	)		—		—		—		—			—			(295,876	)
(4)	Enforceable master netting agreement or similar agreement
---	---

The carrying amounts of financial instruments recognized of which offset agreements are applicable as of September 30, 2024 and December 31, 2023 are as follows:

(In millions of won)	September 30, 2024
	Gross financialinstrumentsrecognized		Amount offset			Net financial instrumentspresented on the interimconsolidated statement offinancial position
Financial assets:
Accounts receivable – trade and others	~~W~~	207,214		(189,332	)		17,882
Financial liabilities:
Accounts payable – other and others	~~W~~	193,334		(189,332	)		4,002
(In millions of won)	December 31, 2023
	Gross financialinstrumentsrecognized		Amount offset			Net financial instrumentspresented on theconsolidated statement offinancial position
Financial assets:
Accounts receivable – trade and others	~~W~~	194,374		(183,520	)		10,854
Financial liabilities:
Accounts payable – other and others	~~W~~	190,630		(183,520	)		7,110

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2024 and 2023 (Unaudited)

30.	Transactions with Related Parties
(1)	List of the Group’s related parties
---	---
Relationship	Company
---	---
Ultimate controlling entity	SK Inc.
Joint venture	UTC Kakao-SK Telecom ESG Fund
Associates	SK China Company Ltd. and 43 others
Others	The Ultimate controlling entity’s subsidiaries and associates and others

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

(2)	Compensation for the key management

The Parent Company considers registered directors of the Parent Company who have substantial role and responsibility in planning, operations, and relevant controls of the business as key management. The compensations given to such key management for the three and nine-month periods ended September 30, 2024 and 2023 are as follows:

(In millions of won)	2024				2023
	Three-monthperiod endedSeptember 30		Nine-monthperiod endedSeptember 30		Three-monthperiod endedSeptember 30		Nine-monthperiod endedSeptember 30
Salaries	~~W~~	768		4,906		602		3,532
Defined benefits plan expenses		204		1,159		158		846
Share option		1,169		882		933		1,596
	~~W~~	2,141		6,947		1,693		5,974

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

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2024 and 2023 (Unaudited)

30.	Transactions with Related Parties, Continued
(3)	Transactions with the related parties for the three and nine-month periods ended September 30, 2024 and 2023<br>are as follows:
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
		For the period ended September 30, 2024
		Operating revenue andothers				*Operating expenses andothers(1)**					Acquisition of propertyand equipment andothers
Scope	Company	Three-month		Nine-month		Three-month			Nine-month		Three-month		Nine-month
Ultimate controlling entity	SK Inc.(*2)	~~W~~	4,714		13,908		157,323			486,441		28,759		44,034
Associates	F&U Credit information Co., Ltd.		863		2,427		12,131			36,774		—		203
	Daehan Kanggun BcN Co., Ltd.		3,565		9,227		—			—		—		—
	Others(*3)		1,270		8,033		2,406			9,742		—		—
			5,698		19,687		14,537			46,516		—		203
Others	SK Innovation Co., Ltd.		4,520		12,170		4,988			12,656		—		—
	SK Energy Co., Ltd.		713		2,401		(20	)		166		—		—
	SK Geo Centric Co., Ltd.		177		584		1			2		—		—
	SK Networks Co., Ltd.(*4)		1,216		4,106		293,767			740,061		—		—
	SK Networks Service Co., Ltd.		1,281		3,884		17,457			49,296		1,205		1,983
	SK Ecoplant Co., Ltd.		775		1,863		—			—		—		—
	SK hynix Inc.		13,926		36,465		39			189		—		—
	SK Shieldus Co., Ltd.		16,583		45,950		37,026			112,787		2,327		5,388
	Content Wavve Corp.		3,992		9,151		22,903			63,245		—		—
	Eleven Street Co., Ltd.		17,065		51,403		8,198			22,565		—		—
	SK Planet Co., Ltd.		4,818		12,039		21,996			62,296		719		9,355
	SK RENT A CAR Co., Ltd.(*5)		2,069		8,336		3,607			14,462		—		169
	SK Magic Co., Ltd.		358		1,162		144			484		—		—
	Tmap Mobility Co., Ltd.		5,802		18,419		1,525			4,748		—		—
	One Store Co., Ltd.		3,357		11,629		428			1,175		—		—
	Dreamus Company		1,389		4,175		16,620			49,980		265		265
	UNA Engineering Inc.<br><br><br>(Formerly, UbiNS Co., Ltd.)		21		67		13,807			39,741		9,275		17,583
	Happy Narae Co., Ltd.		361		975		3,630			9,977		20,777		44,899
	Others		11,399		35,146		4,491			14,175		678		17,400
			89,822		259,925		450,607			1,198,005		35,246		97,042
		~~W~~	100,234		293,520		622,467			1,730,962		64,005		141,279
(*1)	Operating expenses and others include lease payments by the Group.
---	---
(*2)	Operating expenses and others include ~~W~~177,961 million of dividends paid by the Parent<br>Company.
---	---
(*3)	Operating revenue and others include ~~W~~5,780 million of dividends received which was<br>deducted from the investment in associates.
---	---
(*4)	Operating expenses and others include costs for handset purchases amounting to<br>~~W~~702,398 million.
---	---
(*5)	SK RENT A CAR Co., Ltd. was excluded from the related parties for the nine-month period ended<br>September 30, 2024, and the transactions above occurred before the related party relationship terminated.
---	---

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2024 and 2023 (Unaudited)

30.	Transactions with Related Parties, Continued
(3)	Transactions with the related parties for the three and nine-month periods ended September 30, 2024 and 2023<br>are as follows, Continued:
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---	---	---	---	---	---
		For the period ended September 30, 2023
		Operating revenue andothers				*Operating expenses andothers(1)**				Acquisition of propertyand equipment andothers
Scope	Company	Three-month		Nine-month		Three-month		Nine-month		Three-month		Nine-month
Ultimate controlling entity	SK Inc.(*2)	~~W~~	4,967		15,746		156,689		468,074		13,509		29,067
Associates	F&U Credit information Co., Ltd.		757		2,274		10,945		37,583		352		352
	SK AMERICAS Inc.<br><br><br>(Formerly, SK USA, Inc.)		—		—		2,916		6,580		—		—
	Daehan Kanggun BcN Co., Ltd.		2,649		7,770		—		—		—		—
	Others(*3)		—		6,865		5,726		5,801		—		750
			3,406		16,909		19,587		49,964		352		1,102
Others	SK Innovation Co., Ltd.		9,831		23,933		4,737		13,679		—		—
	SK Energy Co., Ltd.		850		2,670		16		266		—		—
	SK Geo Centric Co., Ltd.		142		511		1		1		—		—
	SK Networks Co., Ltd.(*4)		1,620		3,477		228,466		668,352		1		1
	SK Networks Service Co., Ltd.		1,305		4,053		16,988		51,361		1,136		4,947
	SK Ecoplant Co., Ltd.		584		1,811		—		—		—		—
	SK hynix Inc.		13,811		41,489		35		88		—		—
	SK Shieldus Co., Ltd.		16,520		45,777		33,845		117,490		7,221		11,157
	Content Wavve Corp.		3,523		10,934		21,937		62,971		—		176
	Eleven Street Co., Ltd.		13,385		42,922		9,847		22,594		—		—
	SK Planet Co., Ltd.		4,315		13,904		20,868		65,200		1,538		5,673
	SK RENT A CAR Co., Ltd.		3,267		10,654		5,174		15,061		—		—
	SK Magic Co., Ltd.		386		1,169		281		857		—		—
	Tmap Mobility Co., Ltd.		5,661		17,029		2,396		7,605		—		—
	One Store Co., Ltd.		3,985		12,152		1		7		—		—
	Dreamus Company		1,486		4,842		18,487		59,333		—		—
	UNA Engineering Inc.<br><br><br>(Formerly, UbiNS Co., Ltd.)		64		143		13,370		36,014		9,427		20,041
	Happy Narae Co., Ltd.		308		1,099		2,313		7,831		22,487		49,512
	Others		10,908		36,384		5,779		16,048		4,926		6,401
			91,951		274,953		384,541		1,144,758		46,736		97,908
		~~W~~	100,324		307,608		560,817		1,662,796		60,597		128,077
(*1)	Operating expenses and others include lease payments by the Group.
---	---
(*2)	Operating expenses and others include ~~W~~163,514 million of dividends paid by the Parent<br>Company.
---	---
(*3)	Operating revenue and others include ~~W~~2,165 million of dividends received from Korea IT<br>Fund, ~~W~~3,965 million of dividends received from Citadel Pacific Telecom Holdings, LLC and ~~W~~735 million of dividends received from UNISK(Beijing) Information Technology Co., Ltd.
---	---
(*4)	Operating expenses and others include costs for handset purchases amounting to<br>~~W~~627,598 million.
---	---

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2024 and 2023 (Unaudited)

30.	Transactions with Related Parties, Continued
(4)	Account balances with the related parties as of September 30, 2024 and December 31, 2023 are as follows:<br>
---	---
(In millions of won)		September 30, 2024
---	---	---	---	---	---	---	---
		Receivables				Payables
Scope	Company	Loans		Accountsreceivable –trade, etc.		Accountspayable – other,etc.
Ultimate controlling entity	SK Inc.	~~W~~	—		1,117		62,961
Associates	F&U Credit information Co., Ltd.		—		15		5,039
	Daehan Kanggun BcN Co., Ltd.(*1)		22,147		6,742		—
	Others		—		4,702		914
			22,147		11,459		5,953
Others	SK Innovation Co., Ltd.		—		4,508		27,551
	SK Networks Co., Ltd.		—		1,345		183,502
	Mintit Co., Ltd.		—		5,274		—
	SK hynix Inc.		—		10,914		145
	Happy Narae Co., Ltd.		—		31		2,671
	SK Shieldus Co., Ltd.		—		13,041		21,852
	Content Wavve Corp.		—		1,618		4
	Incross Co., Ltd.		—		1,863		5,136
	Eleven Street Co., Ltd.		—		17,892		8,181
	SK Planet Co., Ltd.		—		2,389		13,766
	UNA Engineering Inc. (Formerly, UbiNS Co., Ltd.)		—		—		6,615
	Others		—		13,249		17,368
			—		72,124		286,791
		~~W~~	22,147		84,700		355,705
(*1)	As of September 30, 2024, the Parent Company recognized loss allowance for the entire balance of loans to<br>Daehan Kanggun BcN Co., Ltd.
---	---

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2024 and 2023 (Unaudited)

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

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2024 and 2023 (Unaudited)

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~~1,098 million as of September 30, 2024.

(2)	Legal claims and litigations

As of September 30, 2024, the Group is involved in various legal claims and litigations. Provision recognized in relation to these claims and litigations is immaterial. In connection with those legal claims and litigations for which no provision was recognized, management does not believe the Group has a present obligation, nor is it expected any of these claims or litigations will have a material impact on the Group’s financial position or operating results in the event an outflow of resources is ultimately necessary.

(3)	Accounts receivable from sale of handsets

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

The accounts receivable from sale of handsets amounting to ~~W~~388,986 million and ~~W~~291,747 million as of September 30, 2024 and December 31, 2023, respectively, which the Parent Company purchased according to the relevant comprehensive agreement are recognized as accounts receivable – other and long-term accounts receivable – other.

(4)	Obligation relating to spin-off

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

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2024 and 2023 (Unaudited)

31.	Commitments and Contingencies, Continued
(5)	Commitment of the acquisition and disposal of shares
---	---

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

(6)

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

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2024 and 2023 (Unaudited)

32.	Statements of Cash Flows
(1)	Adjustments for income and expenses from operating activities for the nine-month periods ended<br>September 30, 2024 and 2023 are as follows:
---	---
(In millions of won)	For the nine-month period ended
---	---	---	---	---	---	---
	September 30, 2024			September 30, 2023
Interest income	~~W~~	(59,835	)		(48,679	)
Dividends		(27,982	)		(35,440	)
Gain on foreign currency translations		(1,791	)		(3,069	)
Gain relating to investments in associates and joint ventures, net		(24,685	)		(6,437	)
Gain on disposal of property and equipment and intangible assets		(11,245	)		(15,477	)
Gain relating to financial instruments at FVTPL		(19,236	)		(82,450	)
Interest expenses		301,584			286,516
Loss on foreign currency translations		2,860			1,949
Loss on sale of accounts receivable – other		28,426			48,595
Income tax expense		291,346			312,289
Expense related to defined benefit plan		92,866			92,979
Share option		5,460			2,828
Bonus paid by treasury shares		24,988			20,420
Depreciation and amortization		2,771,886			2,810,381
Bad debt for accounts receivable – trade		33,658			27,965
Loss on impairment of property and equipment and intangible assets		2			512
Loss on disposal of property and equipment and intangible assets		8,721			4,869
Bad debt for accounts receivable – other		2,913			4,788
Loss relating to financial instruments at FVTPL		95,419			23,581
Other income (expenses)		(3,183	)		(4,294	)
	~~W~~	3,512,172			3,441,826

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2024 and 2023 (Unaudited)

32.	Statements of Cash Flows, Continued
(2)	Changes in assets and liabilities from operating activities for the nine-month periods ended September 30,<br>2024 and 2023 are as follows:
---	---
(In millions of won)	For the nine-month period ended
---	---	---	---	---	---	---
	September 30, 2024			September 30, 2023
Accounts receivable – trade	~~W~~	(189,225	)		(182,814	)
Accounts receivable – other		(40,419	)		32,272
Advanced payments		(17,757	)		17,040
Prepaid expenses		(35,026	)		(23,999	)
Inventories		(43,607	)		(24,717	)
Long-term accounts receivable – other		(43,303	)		44,933
Contract assets		(7,891	)		(46	)
Guarantee deposits		2,780			(5,385	)
Accounts payable – trade		25,357			37,645
Accounts payable – other		(160,901	)		(199,008	)
Withholdings		235,215			123,890
Contract liabilities		14,494			(11,666	)
Deposits received		438			(1,841	)
Accrued expenses		71,138			3,417
Provisions		(23	)		(318	)
Long-term provisions		(246	)		(1,057	)
Plan assets		62,816			21,346
Retirement benefits payment		(90,685	)		(66,839	)
Others		(2,808	)		(1,771	)
	~~W~~	(219,653	)		(238,918	)
(3)	Material non-cash transactions for the nine-month periods ended<br>September 30, 2024 and 2023 are as follows:
---	---
(In millions of won)	For the nine-month period ended
---	---	---	---	---	---	---
	September 30, 2024			September 30, 2023
Decrease in accounts payable – other relating to the acquisition of property and equipment<br>and intangible assets	~~W~~	(408,442	)		(584,055	)
Increase of<br>right-of-use assets		246,155			267,181
Transfer from property and equipment to investment property		(1,338	)		13,213

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2024 and 2023 (Unaudited)

33. Emissions Liabilities

(1)	The quantity of emissions rights allocated free of charge for each implementation year as of September 30,<br>2024 are as follows:
(In tCO2-eQ)
---	---	---	---	---	---	---	---	---	---	---	---	---
	Quantities<br>allocated<br>in 2021		Quantities<br>allocated<br>in 2022		Quantities<br>allocated<br>in 2023		Quantities<br>allocated<br>in 2024		Quantities<br>allocated<br>in 2025		Total
Emissions rights allocated free of charge(*)		1,385,433		1,602,751		1,740,261		1,463,875		1,503,983		7,696,303
(*)	Changes in quantity, due to additional allocation, cancellation of allocation and others, are considered.<br>
---	---
(2)	Changes in emissions rights quantities the Group held are as follows:
---	---
(In tCO2-eQ)
---	---	---	---	---	---	---	---	---	---	---	---	---
	Quantities<br>allocated in 2022			Quantities<br>allocated in 2023			Quantities allocatedin the nine-month<br>period ended<br>September 30, 2024			Total
Beginning		—			306,575			414,356			720,931
Allocation at no cost		1,602,751			1,736,917			1,463,875			4,803,543
Purchase		213,609			(56,265	)		28,053			185,397
Surrender or<br><br><br>shall be surrendered		(1,515,595	)		(1,572,871	)		(1,707,235	)		(4,795,701	)
Borrowed		5,810			—			—			5,810
Ending		306,575			414,356			199,049			919,980
(3)	As of September 30, 2024, the estimated annual greenhouse gas emissions quantities of the Group are<br>1,707,235 tCO2-eQ.
---	---
34.	Non-current Assets Held for Sale
---	---

Non-current assets held for sale as of September 30, 2024 and December 31, 2023 are as follows:

(In millions of won)
		September 30, 2024		December 31, 2023
Investments in associates	Daekyo Wipoongdangdang Contents Korea Fund	~~W~~	746		746
Long-term investment securities	Digital Content Korea Fund		3,395		3,395
	Central Fusion Content Fund		884		884
	P&I Cultural Innovation Fund		817		1,892
Inventories	—		—		505
Prepaid expenses	—		—		1,489
Property and equipment	—		—		1,604
		~~W~~	5,842		10,515

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2024 and 2023 (Unaudited)

35.	Subsequent Events
(1)	The Board of Directors of the Parent Company resolved to pay interim dividends at the Board of Directors’<br>meeting held on October 24, 2024, and the details are as follows:
---	---
Classification	Description
---	---
Interim dividend amount	~~W~~830 per share (Total amount: ~~W~~176,696 million)
Dividend rate	1.44%
Record date	September 30, 2024
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 November 13,<br>2024.
(2)	The Board of Directors of the Parent Company resolved the acquisition of certain shares of SK Broadband Co.,<br>Ltd. (24.76%) for ~~W~~1,145,870 million based on existing agreement with the other shareholders at the Board of Directors’ meeting held on November 13, 2024, and entered into a share acquisition contract as of<br>November 13, 2024.
---	---

SK TELECOM CO., LTD.

Interim Separate Financial Statements

For each of the nine-month periods ended September 30, 2024 and 2023

(with the independent auditor’s review report)

Contents

	Page
Report on Review of Interim Separate FinancialStatements
Interim Separate Financial Statements
Interim Separate Statements of Financial Position		1
Interim Separate Statements of Income		3
Interim Separate Statements of Comprehensive Income		4
Interim Separate Statements of Changes in Equity		5
Interim Separate Statements of Cash Flows		6
Notes to the Interim Separate Financial Statements		8

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

Report on review of interim separate financial statements

(English translation of a report originally issued in Korean)

The Shareholders and Board of Directors

SK TelecomCo., Ltd.

We have reviewed the accompanying interim separate financial statements of SK Telecom Co., Ltd. (the “Company”), which comprise the interim separate statement of financial position as of September 30, 2024, and the related interim separate statements of income, interim separate statements of comprehensive income for each of the three-month and nine-month periods ended September 30, 2024 and 2023, interim separate statements of changes in equity and interim separate statements of cash flows for each of the nine-month periods ended September 30, 2024 and 2023, and a summary of material accounting policy information and other explanatory information.

Management’s responsibility for the interim separate financial statements

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

Auditor’s responsibility

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

Conclusion

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

LOGO

Other matter

We have audited the separate statement of financial position as of December 31, 2023, and the related separate statement of income, separate statement of comprehensive income, separate statement of changes in equity and separate statement of cash flows for the year then ended (not presented herein) in accordance with KSA, and our report dated March 6, 2024 expressed an unqualified opinion thereon. The accompanying separate statement of financial position as of December 31, 2023, presented for comparative purposes, is not different, in all material respects, from the above audited separate statement of financial position.

November 13, 2024

This review report is effective as of November 13, 2024, the independent auditor’s review report date. Accordingly, certain material subsequent events or circumstances may have occurred during the period from the date of the independent auditor’s review report to the time this review report is used. Such events and circumstances could significantly affect the accompanying interim separate financial statements and may result in modification to this review report.

SK TELECOM CO., LTD. (the “Company”)

INTERIM SEPARATE FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2024 AND DECEMBER 31, 2023 AND

FOR THE THREE-MONTH AND NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2024 AND 2023

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

Ryu, Young-Sang
Chief Executive Officer
SK TELECOM CO., LTD.

SK TELECOM CO., LTD.

Interim Separate Statements of Financial Position

As of September 30, 2024 and December 31, 2023

(In millions of won)		September 30, 2024(Unaudited)		December 31,2023
Assets
Current Assets:
Cash and cash equivalents	27,28	~~W~~	1,044,585		631,066
Short-term financial instruments	27,28		107,988		186,364
Accounts receivable – trade, net	4,27,28,29		1,651,107		1,495,617
Short-term loans, net	4,27,28		68,585		68,806
Accounts receivable – other, net	4,27,28,29,30		402,293		343,036
Contract assets	6,28		5,828		9,228
Prepaid expenses	5		1,833,260		1,828,646
Guarantee deposits	4,27,28,29		75,660		72,479
Derivative financial assets	27,28		38,813		—
Inventories, net			51,579		28,096
Advanced payments and others	4,27,28		37,342		40,506
		****	5,317,040	****	4,703,844
Non-Current Assets:
Long-term financial instruments	27,28		354		354
Long-term investment securities	7,27,28		1,305,726		1,426,290
Investments in subsidiaries, associates and joint ventures	8		4,721,651		4,670,568
Property and equipment, net	9,11,29		8,293,241		9,076,459
Investment property, net	10		40,149		46,080
Goodwill			1,306,236		1,306,236
Intangible assets, net	12		1,788,870		2,250,829
Long-term loans, net	4,27,28,29		505		119
Long-term accounts receivable – other	4,27,28,30		347,241		308,868
Long-term contract assets	6,28		14,298		12,385
Long-term prepaid expenses	5		896,947		898,754
Guarantee deposits, net	4,27,28,29		89,389		91,220
Long-term derivative financial assets	27,28		89,622		118,533
Defined benefit assets	16		98,769		85,144
Other non-current assets			249		249
		****	18,993,247	****	20,292,088
Total Assets		~~W~~	24,310,287	****	24,995,932

(Continued)

SK TELECOM CO., LTD.

Interim Separate Statements of Financial Position, Continued

As of September 30, 2024 and December 31, 2023

(In millions of won)		September 30, 2024(Unaudited)			December 31,2023
Liabilities and Shareholders’ Equity
Current Liabilities:
Accounts payable – other	27,28,29	~~W~~	1,297,643			1,794,997
Contract liabilities	6		77,908			59,814
Withholdings	27,28		787,696			608,352
Accrued expenses	27,28		938,542			911,460
Income tax payable	25		130,790			133,543
Provisions	15,32		31,738			31,313
Current portion of long-term debt, net	13,27,28		1,944,840			1,249,516
Lease liabilities	27,28,29		328,970			341,075
Current portion of long-term payables – other	14,27,28		366,161			367,770
Derivative financial liabilities	27,28		391,265			—
Other current liabilities	27,28		14,437			7,630
		****	6,309,990	****	****	5,505,470	****
Non-Current Liabilities:
Debentures, excluding current portion, net	13,27,28		4,945,244			5,807,423
Long-term borrowings, excluding current portion, net	13,27,28		50,000			250,000
Long-term payables – other	14,27,28		537,750			892,683
Long-term contract liabilities	6		1,493			4,398
Long-term derivative financial liabilities	27,28		—			295,876
Long-term lease liabilities	27,28,29		764,148			885,470
Long-term provisions	15		69,440			69,791
Deferred tax liabilities	25		793,436			801,995
Other non-current liabilities	27,28		41,102			46,733
		****	7,202,613	****	****	9,054,369	****
Total Liabilities		****	13,512,603	****	****	14,559,839	****
Shareholders’ Equity:
Share capital	1,17		30,493			30,493
Capital surplus and others	17,18		(4,553,051	)		(4,766,147	)
Retained earnings	19		15,208,138			15,032,473
Reserves	20		112,104			139,274
Total Shareholders’ Equity		****	10,797,684	****	****	10,436,093	****
Total Liabilities and Shareholders’ Equity		~~W~~	24,310,287	****	****	24,995,932	****

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

SK TELECOM CO., LTD.

Interim Separate Statements of Income

For the three-month and nine-month periods ended September 30, 2024 and 2023

(In millions of won, except for earnings per share)			2024<br>(Unaudited)						2023<br>(Unaudited)
	Note		Three-monthperiod endedSeptember 30			Nine-monthperiod endedSeptember 30			Three-monthperiod endedSeptember 30			Nine-monthperiod endedSeptember 30
Operating revenue:		21,29
Revenue			~~W~~	3,203,229			9,583,437			3,148,447			9,384,930
Operating expenses:		29
Labor				243,367			747,366			229,040			678,471
Commission		5		1,169,848			3,521,480			1,191,309			3,568,613
Depreciation and amortization				659,441			1,983,120			669,718			2,022,304
Network interconnection				116,303			357,350			115,027			358,825
Leased lines				48,925			144,124			45,308			142,228
Advertising				36,333			82,499			35,234			98,135
Rent				31,158			88,563			34,688			98,429
Cost of goods sold				148,467			447,549			135,320			401,066
Others		22		292,397			867,554			285,692			814,977
				2,746,239			8,239,605			2,741,336			8,183,048
Operating profit			****	456,990	****	****	1,343,832	****	****	407,111	****	****	1,201,882	****
Finance income		24		16,136			258,753			16,496			312,339
Finance costs		24		(180,314	)		(366,323	)		(98,703	)		(323,516	)
Other non-operating income		23		5,644			17,943			7,405			21,324
Other non-operating expenses		23		(6,499	)		(21,215	)		(4,793	)		(20,276	)
Gain (loss) relating to investments in subsidiaries, associates and joint ventures, net		8		(150	)		11,329			—			—
Profit before income tax			****	291,807	****	****	1,244,319	****	****	327,516	****	****	1,191,753	****
Income tax expense		25		69,450			249,524			77,102			246,385
Profit for the period			~~W~~	222,357	****	****	994,795	****	****	250,414	****	****	945,368	****
Earnings per share:		26
Basic earnings per share (in won)			~~W~~	1,021			4,604			1,128			4,277
Diluted earnings per share (in won)				1,018			4,592			1,127			4,276

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

SK TELECOM CO., LTD.

Interim Separate Statements of Comprehensive Income

For the three-month and nine-month periods ended September 30, 2024 and 2023

(In millions of won) ****			2024<br>(Unaudited)						2023<br>(Unaudited)
	Note		Three-monthperiod endedSeptember 30			Nine-month<br>period endedSeptember 30			Three-monthperiod endedSeptember 30			Nine-monthperiod endedSeptember 30
Profit for the period			~~W~~	222,357	****	****	994,795	****	****	250,414	****	****	945,368	****
Other comprehensive income (loss):
Items that will not be reclassified subsequently to profit or loss, net of taxes:
Remeasurement of defined benefit assets		16		12,718			20,262			5,313			12,135
Valuation loss on financial assets at fair value through other comprehensive income		20		(54,412	)		(71,221	)		(78,129	)		(123,614	)
Items that are or may be reclassified subsequently to profit or loss, net oftaxes:
Net change in unrealized fair value of derivatives		20		(5,606	)		(3,769	)		(3,976	)		(8,589	)
Other comprehensive loss for period, net of taxes			****	(47,300	)	****	(54,728	)	****	(76,792	)	****	(120,068	)
Total comprehensive income			~~W~~	175,057	****	****	940,067	****	****	173,622	****	****	825,300	****

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

SK TELECOM CO., LTD.

Interim Separate Statements of Changes in Equity

For the nine-month periods ended September 30, 2024 and 2023

(In millions of won)					Capital surplus and others																Retainedearnings			Reserves			Total equity
	Note		Sharecapital		Paid-in surplus		Treasury shares			Hybrid bonds			Share option		Other			Sub-total
Balance as of January 1, 2023			~~W~~	30,493	****	1,771,000	****	(36,702	)	****	398,759	****	****	2,061	****	(6,641,811	)	****	(4,506,693	)	****	14,691,461	****	****	168,121	****	****	10,383,382	****
Total comprehensive income (loss):
Profit for the period				—		—		—			—			—		—			—			945,368			—			945,368
Other comprehensive income (loss)		16,20		—		—		—			—			—		—			—			11,190			(131,258	)		(120,068	)
				—		—		—			—			—		—			—			956,558			(131,258	)		825,300
Transactions with owners:
Annual dividends				—		—		—			—			—		—			—			(180,967	)		—			(180,967	)
Interim dividends				—		—		—			—			—		—			—			(362,660	)		—			(362,660	)
Share option		18		—		—		—			—			1,035		(1,309	)		(274	)		—			—			(274	)
Interest on hybrid bonds				—		—		—			—			—		—			—			(12,333	)		—			(12,333	)
Redemption of hybrid bonds				—		—		—			(398,759	)		—		(1,241	)		(400,000	)		—			—			(400,000	)
Issuance of hybrid bonds				—		—		—			398,509			—		—			398,509			—			—			398,509
Transactions of treasury shares		17,18		—		—		(78,647	)		—			—		159			(78,488	)		—			—			(78,488	)
				—		—		(78,647	)		(250	)		1,035		(2,391	)		(80,253	)		(555,960	)		—			(636,213	)
Balance as of September 30, 2023 (Unaudited)			~~W~~	30,493	****	1,771,000	****	(115,349	)	****	398,509	****	****	3,096	****	(6,644,202	)	****	(4,586,946	)	****	15,092,059	****	****	36,863	****	****	10,572,469	****
Balance as of January 1, 2024			~~W~~	30,493	****	1,771,000	****	(301,981	)	****	398,509	****	****	9,818	****	(6,643,493	)	****	(4,766,147	)	****	15,032,473	****	****	139,274	****	****	10,436,093	****
Total comprehensive income (loss):
Profit for the period				—		—		—			—			—		—			—			994,795			—			994,795
Other comprehensive income (loss)		16,20		—		—		—			—			—		—			—			(27,558	)		(27,170	)		(54,728	)
				—		—		—			—			—		—			—			967,237			(27,170	)		940,067
Transactions with owners:
Annual dividends				—		—		—			—			—		—			—			(223,335	)		—			(223,335	)
Interim dividends				—		—		—			—			—		—			—			(353,387	)		—			(353,387	)
Share option		18		—		—		—			—			3,864		78			3,942			—			—			3,942
Interest on hybrid bonds				—		—		—			—			—		—			—			(14,850	)		—			(14,850	)
Acquisition and disposal of treasury shares		17,18		—		—		9,019			—			—		135			9,154			—			—			9,154
Retirement of treasury shares		17,18		—		—		200,000			—			—		—			200,000			(200,000	)		—			—
				—		—		209,019			—			3,864		213			213,096			(791,572	)		—			(578,476	)
Balance as of September 30, 2024 (Unaudited)			~~W~~	30,493	****	1,771,000	****	(92,962	)	****	398,509	****	****	13,682	****	(6,643,280	)	****	(4,553,051	)	****	15,208,138	****	****	112,104	****	****	10,797,684	****

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

SK TELECOM CO., LTD.

Interim Separate Statements of Cash Flows

For the nine-month periods ended September 30, 2024 and 2023

(In millions of won)		2024(Unaudited)			2023(Unaudited)
Cash flows from operating activities:
Cash generated from operating activities:
Profit for the period		~~W~~	994,795			945,368
Adjustments for income and expenses	31		2,514,620			2,451,710
Changes in assets and liabilities related to operating activities	31		(225,790	)		(174,806	)
			3,283,625			3,222,272
Interest received			26,153			21,425
Dividends received			207,112			200,406
Interest paid			(236,091	)		(227,511	)
Income tax paid			(247,792	)		(192,685	)
Net cash provided by operating activities		****	3,033,007	****	****	3,023,907	****
Cash flows from investing activities:
Cash inflows from investing activities:
Decrease in short-term financial instruments, net			80,024			—
Collection of short-term loans			92,314			96,162
Proceeds from disposals of long-term investment securities			34,089			9,720
Proceeds from disposals of investments in subsidiaries, associates and joint ventures			17,222			—
Proceeds from disposals of property and equipment			11,993			7,583
Proceeds from disposals of intangible assets			4,176			1,739
			239,818			115,204
Cash outflows for investing activities:
Increase in short-term financial instruments, net			—			(160,955	)
Increase in short-term loans			(92,481	)		(99,913	)
Acquisitions of long-term investment securities			(1,145	)		(284,145	)
Acquisitions of investments in subsidiaries, associates and joint ventures			(48,883	)		(79,142	)
Acquisitions of property and equipment			(1,089,631	)		(1,412,405	)
Acquisitions of intangible assets			(9,147	)		(19,969	)
			(1,241,287	)		(2,056,529	)
Net cash used in investing activities		~~W~~	(1,001,469	)	****	(1,941,325	)

(Continued)

SK TELECOM CO., LTD.

Interim Separate Statements of Cash Flows, Continued

For the nine-month periods ended September 30, 2024 and 2023

(In millions of won)	2024(Unaudited)			2023(Unaudited)
Cash flows from financing activities:			****
Cash inflows from financing activities:
Proceeds from issuance of debentures	~~W~~	398,306			647,332
Cash inflows from settlement of derivatives		—			126,000
Proceeds from issuance of hybrid bonds		—			398,509
		398,306			1,171,841
Cash outflows for financing activities:
Repayments of short-term borrowings, net		—			(100,000	)
Repayments of long-term borrowings		(380,000	)		—
Repayments of long-term payables – other		(369,150	)		(400,245	)
Repayments of debentures		(410,000	)		(1,309,000	)
Payments of dividends		(576,703	)		(543,601	)
Redemption of hybrid bonds		—			(400,000	)
Acquisition of treasury shares		(15,788	)		(98,855	)
Payments of interest on hybrid bonds		(14,850	)		(12,333	)
Repayments of lease liabilities		(249,981	)		(257,789	)
		(2,016,472	)		(3,121,823	)
Net cash used in financing activities	****	(1,618,166	)	****	(1,949,982	)
Net increase (decrease) in cash and cash equivalents	****	413,372	****	****	(867,400	)
Cash and cash equivalents at beginning of the period		631,066			1,217,504
Effects of exchange rate changes on cash and cash equivalents		147			2
Cash and cash equivalents at end of the period	~~W~~	1,044,585	****	****	350,106	****

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

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2024 and 2023 (Unaudited)

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 September 30, 2024, the Company’s total issued shares are held by the following shareholders:

	Number of shares
SK Inc.		65,668,397	30.57
National Pension Service		17,443,260	8.12
Institutional investors and other shareholders		125,928,198	58.63
Kakao Investment Co., Ltd.		3,846,487	1.79
Treasury shares		1,903,711	0.89
		214,790,053	100.00
2.	Basis of Preparation
---	---
(1)	Statement of compliance
---	---

These interim condensed separate financial statements were prepared in accordance with International Financial Reporting Standard as adopted by the Republic of Korea (“KIFRS”) 1034 Interim Financial Reporting as part of the period covered by the Company’s KIFRS annual financial statements. These interim separate 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, 2023. The accompanying interim separate financial statements have been translated into English from the Korean language financial statements. In the event of any differences in interpreting the financial statements or the independent auditor’s review report thereon, the Korean version, which is used for regulatory reporting purposes, shall prevail.

These interim financial statements are interim separate financial statements prepared in accordance with KIFRS 1027, Separate FinancialStatements, 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.

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2024 and 2023 (Unaudited)

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

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

In preparing these interim separate financial statements, the significant judgments made by management in applying the Company’s accounting policies and the key sources of estimation uncertainty were the same as those that applied to the separate financial statements as of and for the year ended December 31, 2023.

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 is directly reported to the finance executives.

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

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

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

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

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

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2024 and 2023 (Unaudited)

3.	Material Accounting Policies

The material accounting policies applied by the Company in these interim separate financial statements are the same as those applied by the Company in its separate financial statements as of and for the year ended December 31, 2023, except for the adoption of new and revised KIFRS applied from January 1, 2024, which are summarized below. The Company has not early applied the new and revised KIFRS and interpretations that have been issued but are not yet effective.The following new and amended KIFRS and interpretations are effective from January 1, 2024, initially, but these amended standards are not expected to have a material impact on the Company’s interim separate financial statements.

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

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2024 and 2023 (Unaudited)

4.	Trade and Other Receivables
(1)	Details of trade and other receivables as of September 30, 2024 and December 31, 2023 are as follows:<br>
---	---
(In millions of won)	September 30, 2024
---	---	---	---	---	---	---	---
	Grossamount		Lossallowance			Carryingamount
Current assets:
Accounts receivable – trade	~~W~~	1,756,976		(105,869	)		1,651,107
Short-term loans		69,277		(692	)		68,585
Accounts receivable – other(*)		425,652		(23,359	)		402,293
Guarantee deposits		75,660		—			75,660
Accrued income		731		—			731
		2,328,296		(129,920	)		2,198,376
Non-current assets:
Long-term loans		41,546		(41,041	)		505
Long-term accounts receivable – other(*)		347,241		—			347,241
Guarantee deposits		89,389		—			89,389
		478,176		(41,041	)		437,135
	~~W~~	2,806,472		(170,961	)		2,635,511
(*)	Gross and carrying amounts of accounts receivable – other as of September 30, 2024 include<br>~~W~~364,933 million of financial instruments classified as fair value through profit or loss (“FVTPL”).
---	---
(In millions of won)	December 31, 2023
---	---	---	---	---	---	---	---
	Gross amount		Lossallowance			Carryingamount
Current assets:
Accounts receivable – trade	~~W~~	1,589,862		(94,245	)		1,495,617
Short-term loans		69,501		(695	)		68,806
Accounts receivable – other(*)		370,860		(27,824	)		343,036
Guarantee deposits		72,479		—			72,479
Accrued income		2,643		—			2,643
		2,105,345		(122,764	)		1,982,581
Non-current assets:
Long-term loans		41,155		(41,036	)		119
Long-term accounts receivable – other(*)		308,868		—			308,868
Guarantee deposits		91,220		—			91,220
		441,243		(41,036	)		400,207
	~~W~~	2,546,588		(163,800	)		2,382,788
(*)	Gross and carrying amounts of accounts receivable – other as of December 31, 2023 include<br>~~W~~273,945 million of financial instruments classified as fair value through profit or loss (“FVTPL”).
---	---

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2024 and 2023 (Unaudited)

4.	Trade and Other Receivables, Continued
(2)	Changes in the loss allowance on trade and other receivables measured at amortized cost for the nine-month<br>periods ended September 30, 2024 and 2023 are as follows:
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---	---	---	---
	January 1, 2024		Impairment		*Write-offs()**			Collection ofreceivablespreviouslywritten-off		September 30, 2024
Accounts receivable – trade	~~W~~	94,245		21,890		(15,758	)		5,492		105,869
Accounts receivable – other, etc.		69,555		3,108		(8,447	)		876		65,092
	~~W~~	163,800		24,998		(24,205	)		6,368		170,961
(In millions of won)
	January 1, 2023		Impairment		*Write-offs()**			Collection ofreceivablespreviouslywritten-off		September 30, 2023
Accounts receivable – trade	~~W~~	86,231		20,884		(14,486	)		6,045		98,674
Accounts receivable – other, etc.		74,449		3,976		(13,279	)		6,496		71,642
	~~W~~	160,680		24,860		(27,765	)		12,541		170,316
(*)	The Company writes off trade and other receivables that are determined to be uncollectable due to reasons such<br>as termination of operations or bankruptcy.
---	---
(3)	The Company applies the practical expedient that allows the Company to estimate the loss allowance for accounts<br>receivable – trade at an amount equal to the lifetime expected credit losses. The expected credit losses include the forward-looking information. To make the assessment, the Company uses its historical credit loss experience over the past three<br>years and classifies the accounts receivable – trade by their credit risk characteristics and days overdue.
---	---

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

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

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2024 and 2023 (Unaudited)

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, and recognizes costs that would not occur in case of not signing contracts with new and existing customers as prepaid expenses among the commissions. These prepaid expenses are amortized on a straight-line basis over the periods that the Company expects to maintain its customers.

(1)	Details of prepaid expenses as of September 30, 2024 and December 31, 2023 are as follows:<br>
(In millions of won)
---	---	---	---	---
	September 30, 2024		December 31, 2023
Current assets:
Incremental costs of obtaining contracts	~~W~~	1,792,567		1,795,410
Others		40,693		33,236
	~~W~~	1,833,260		1,828,646
Non-current assets:
Incremental costs of obtaining contracts	~~W~~	862,555		863,650
Others		34,392		35,104
	~~W~~	896,947		898,754
(2)	Incremental costs of obtaining contracts
---	---

The amortization in connection with incremental costs of obtaining contracts recognized as an asset for the three and nine-month periods ended September 30, 2024 and 2023 are as follows:

(In millions of won)	2024				2023
	Three-monthperiod endedSeptember 30		Nine-monthperiod endedSeptember 30		Three-monthperiod endedSeptember 30		Nine-monthperiod endedSeptember 30
Amortization recognized	~~W~~	584,358		1,755,659		596,890		1,804,940

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2024 and 2023 (Unaudited)

6.	Contract Assets and Liabilities

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

(1)	Details of contract assets and liabilities as of September 30, 2024 and December 31, 2023 are as<br>follows:
(In millions of won)
---	---	---	---	---
	September 30, 2024		December 31, 2023
Contract assets:
Allocation of consideration between performance obligations	~~W~~	20,126		21,613
Contract liabilities:
Wireless service contracts		20,092		19,149
Customer loyalty programs		5,713		7,164
Others		53,596		37,899
	~~W~~	79,401		64,212
(2)	The amounts of revenue recognized for the nine-month periods ended September 30, 2024 and 2023 related to<br>the contract liabilities carried forward from the prior periods are ~~W~~37,526 million and ~~W~~57,979 million, respectively.
---	---

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2024 and 2023 (Unaudited)

7.	Long-term Investment Securities

Details of long-term investment securities as of September 30, 2024 and December 31, 2023 are as follows:

(In millions of won)
	Category	September 30, 2024		December 31, 2023
Equity instruments	FVOCI(*)	~~W~~	1,229,574		1,207,605
Debt instruments	FVTPL		76,152		218,685
		~~W~~	1,305,726		1,426,290
(*)	The Company designated investments in equity instruments that are not held for trading as financial assets at<br>FVOCI, and the amounts of those equity instruments as of September 30, 2024 and December 31, 2023 are ~~W~~1,229,574 million and ~~W~~1,207,605 million, respectively.
---	---

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2024 and 2023 (Unaudited)

8.	Investments in Subsidiaries, Associates and Joint Ventures
(1)	Investments in subsidiaries, associates and joint ventures as of September 30, 2024 and December 31,<br>2023 are as follows:
---	---
(In millions of won)
---	---	---	---	---
	September 30, 2024		December 31, 2023
Investments in subsidiaries	~~W~~	3,299,818		3,259,021
Investments in associates and joint ventures		1,421,833		1,411,547
	~~W~~	4,721,651		4,670,568
(2)	Details of investments in subsidiaries as of September 30, 2024 and December 31, 2023 are as follows:<br>
---	---
(In millions of won, except for share data)
---	---	---	---	---	---	---	---	---
	September 30, 2024						December 31, 2023
	Number ofshares		Ownership<br>(%)		Carrying<br>amount		Carrying<br>amount
SK Telink Co., Ltd.(*1)		1,432,627		100.0	~~W~~	244,036		244,015
SK Broadband Co., Ltd.(*1)		299,052,435		74.4		2,218,204		2,216,865
SK Communications Co., Ltd.		43,427,530		100.0		24,927		24,927
PS&Marketing Corporation(*1)		66,000,000		100.0		314,030		313,989
SERVICE ACE Co., Ltd.(*1)		4,385,400		100.0		21,960		21,946
SK Telecom China Holdings Co., Ltd.		—		100.0		48,096		48,096
SK Telecom Americas, Inc.		122		100.0		70,269		70,269
Atlas Investment(*2)		—		100.0		234,287		193,661
SK stoa Co., Ltd.(*1)		3,631,355		100.0		40,077		40,057
Quantum Innovation Fund I(*3)		—		—		—		1,297
SAPEON Inc.		400,000		62.5		48,456		48,456
SK O&S Co., Ltd. and others(*1)		—		—		35,476		35,443
					~~W~~	3,299,818		3,259,021
(*1)	The Company granted Performance Share Units (“PSU”) for executives of subsidiaries for the nine-month<br>period ended September 30, 2024, resulting in a cumulative contribution amount to ~~W~~1,468 million. There is no change in the ownership interest. (See note 18)
---	---
(*2)	The Company additionally contributed ~~W~~40,626 million in cash for the nine-month period<br>ended September 30, 2024, but there is no change in the ownership interest.
---	---
(*3)	The Company received ~~W~~2,093 million in accordance with the liquidation of Quantum<br>Innovation Fund I and recognized ~~W~~796 million of gain relating to investments in subsidiaries for the nine-month period ended September 30, 2024.
---	---

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2024 and 2023 (Unaudited)

8.	Investments in Subsidiaries, Associates and Joint Ventures, Continued
(3)	Details of investments in associates and joint ventures as of September 30, 2024 and December 31,<br>2023 are as follows:
---	---
(In millions of won, except for share data)
---	---	---	---	---	---	---	---	---
	September 30, 2024						December 31, 2023
	Number ofshares		Ownership<br>(%)		Carrying<br>amount		Carrying<br>amount
Investments in associates:
SK China Company Ltd.		10,928,921		27.3	~~W~~	601,192		601,192
Korea IT Fund(*1)		190		63.3		220,957		220,957
SK Technology Innovation Company		14,700		49.0		45,864		45,864
SM Culture & Contents Co., Ltd.(*2)		22,033,898		22.8		41,578		41,578
SK South East Asia Investment Pte. Ltd.		300,000,000		20.0		344,240		344,240
Citadel Pacific Telecom Holdings, LLC (*3)		1,734,109		15.0		36,487		36,487
CMES Inc.(*3,4)		763,968		8.4		5,488		900
Konan Technology Inc.		2,359,160		20.7		22,413		22,413
12CM JAPAN and others(*3,5,6,7,8)		—		—		93,614		87,916
						1,411,833		1,401,547
Investments in joint ventures:
UTC Kakao-SK Telecom ESG Fund(*9)		10,000		48.2		10,000		10,000
						10,000		10,000
					~~W~~	1,421,833		1,411,547

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2024 and 2023 (Unaudited)

8.	Investments in Subsidiaries, Associates and Joint Ventures, Continued
(3)	Details of investments in associates and joint ventures as of September 30, 2024 and December 31,<br>2023 are as follows, Continued:
---	---
(*1)	Investments in Korea IT Fund was classified as investment in associates as the Company does not have control<br>over the investee under the contractual agreement with other shareholders.
---	---
(*2)	The Company recognized an impairment loss of ~~W~~23,763 million as the recoverable amount<br>was assessed to be less than the carrying amount for the year ended December 31, 2023.
---	---
(*3)	These investments were classified as investments in associates as the Company can exercise significant<br>influence through its right to appoint the members of the Board of Directors even though the Company has less than 20% of equity interests.
---	---
(*4)	The Company additionally acquired ~~W~~8,984 million of shares by exercising the conversion<br>right of the redeemable convertible preference shares, and disposed of a portion of shares for ~~W~~14,872 million in cash, from which it recognized ~~W~~10,476 million of gain on disposal of such investments in<br>associates for the nine-month period ended September 30, 2024. The ownership interest of the Company increased from 7.7% to 8.4% due to the acquisition and disposal of shares.
---	---
(*5)	The Company additionally contributed ~~W~~5,878 million to SK AMERICAS Inc. (formerly, SK<br>USA, Inc.) for the nine-month period ended September 30, 2024, and the ownership interest of the Company has decreased from 49.0% to 20.0% due to the paid-in capital increase through disproportionate<br>allotment of shares.
---	---
(*6)	The Company disposed of a portion of shares in Start-up Win-Win Fund for ~~W~~200 million in cash for the nine-month period ended September 30, 2024.
---	---
(*7)	The Company additionally contributed ~~W~~20 million of investments in F&U Credit<br>information Co., Ltd. for the nine-month period ended September 30, 2024, but there is no change in the ownership interest.
---	---
(*8)	The Company received ~~W~~58 million from the liquidation of ~~W~~ave City Co.,<br>Ltd. and recognized ~~W~~58 million of gain relating to investments in associates for the nine-month period ended September 30, 2024.
---	---
(*9)	As the Company has a joint control over the investee pursuant to the agreement with the other shareholders, the<br>investment in the investee was classified as investments in joint ventures.
---	---
(4)	The market values of investments in listed associates as of September 30, 2024 and December 31, 2023<br>are as follows:
---	---
(In millions of won, except for share data)
---	---	---	---	---	---	---	---	---	---	---	---	---
	September 30, 2024						December 31, 2023
	Market price<br>per share(in won)		Number ofshares		Marketvalue		Market price<br>per share(in won)		Number ofshares		Marketvalue
SM Culture & Contents Co., Ltd.	~~W~~	1,726		22,033,898		38,031		1,887		22,033,898		41,578
Konan Technology Inc.		15,190		2,359,160		35,836		32,600		2,359,160		76,909

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2024 and 2023 (Unaudited)

9.	Property and Equipment

Changes in property and equipment for the nine-month periods ended September 30, 2024 and 2023 are as follows:

(In millions of won)
	For the nine-month period ended September 30, 2024
	Beginningbalance		Acquisition		Disposal			Transfer			Depreciation			Ending<br>balance
Land	~~W~~	723,069		11		(322	)		18,002			—			740,760
Buildings		568,270		515		(252	)		39,770			(32,279	)		576,024
Structures		233,450		546		(75	)		5,989			(29,077	)		210,833
Machinery		5,230,866		46,592		(169	)		919,022			(1,182,863	)		5,013,448
Right-of-use<br>assets		1,226,875		153,800		(29,619	)		3,371			(265,779	)		1,088,648
Other		436,854		261,232		(11,048	)		(295,130	)		(47,628	)		344,280
Construction in progress		657,075		406,897		(1,316	)		(743,408	)		—			319,248
	~~W~~	9,076,459		869,593		(42,801	)		(52,384	)		(1,557,626	)		8,293,241
(In millions of won)
	For the nine-month period ended September 30, 2023
	Beginningbalance		Acquisition		Disposal			Transfer			Depreciation			Ending<br>balance
Land	~~W~~	646,286		3		(388	)		69,302			—			715,203
Buildings		562,976		248		(140	)		41,545			(31,467	)		573,162
Structures		264,327		147		(189	)		4,483			(28,811	)		239,957
Machinery		5,274,612		35,495		(339	)		1,082,805			(1,207,763	)		5,184,810
Right-of-use<br>assets		1,372,466		205,869		(30,427	)		(4,693	)		(268,958	)		1,274,257
Other		444,324		331,169		(634	)		(346,306	)		(50,198	)		378,355
Construction in progress		954,672		496,434		(26	)		(951,836	)		—			499,244
	~~W~~	9,519,663		1,069,365		(32,143	)		(104,700	)		(1,587,197	)		8,864,988

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2024 and 2023 (Unaudited)

10.	Investment Property
(1)	Changes in investment property for the nine-month periods ended September 30, 2024 and 2023 are as<br>follows:
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---	---	---
	For the nine-month period ended September 30, 2024
	Beginningbalance		Transfer			Depreciation			Endingbalance
Land	~~W~~	16,288		(564	)		—			15,724
Buildings		18,284		2,159			(1,451	)		18,992
Right-of-use<br>assets		11,508		(3,074	)		(3,001	)		5,433
	~~W~~	46,080		(1,479	)		(4,452	)		40,149
(In millions of won)
---	---	---	---	---	---	---	---	---	---	---
	For the nine-month period ended September 30, 2023
	Beginningbalance		Transfer			Depreciation			Endingbalance
Land	~~W~~	16,485		(220	)		—			16,265
Buildings		19,066		(744	)		(1,359	)		16,963
Right-of-use<br>assets		16,472		5,401			(7,711	)		14,162
	~~W~~	52,023		4,437			(9,070	)		47,390
(2)	The Company recognized lease income of ~~W~~14,404 million and<br>~~W~~17,044 million from investment property for the nine-month periods ended September 30, 2024 and 2023, respectively.
---	---

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2024 and 2023 (Unaudited)

11.	Leases
(1)	Details of the right-of-use<br>assets as of September 30, 2024 and December 31, 2023 are as follows:
---	---
(In millions of won)
---	---	---	---	---
	September 30, 2024		December 31, 2023
Right-of-use<br>assets:
Land, buildings and structures	~~W~~	839,450		971,929
Others		249,198		254,946
	~~W~~	1,088,648		1,226,875
(2)	Details of amounts recognized in the interim separate statements of income for the nine-month periods ended<br>September 30, 2024 and 2023 as a lessee are as follows:
---	---
(In millions of won)
---	---	---	---	---
	For the nine-month period ended
	September 30, 2024		September 30, 2023
Depreciation of<br>right-of-use assets:
Land, buildings and structures	~~W~~	207,660		210,754
Others(*)		58,119		58,204
	~~W~~	265,779		268,958
Interest expense on lease liabilities	~~W~~	23,390		23,608
(*)	Others include the amount reclassified as research and development expenses related to the lease contract for<br>research and development facilities.
---	---

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

(3)	The total cash outflows due to lease payments for the nine-month periods ended September 30, 2024 and 2023<br>amounted to ~~W~~273,610 million and ~~W~~281,572 million, respectively.

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2024 and 2023 (Unaudited)

12.	Intangible Assets
(1)	Changes in intangible assets for the nine-month periods ended September 30, 2024 and 2023 are as follows:<br>
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	For the nine-month period ended September 30, 2024
	Beginningbalance		Acquisition		Disposal			Transfer		Amortization			Ending<br>balance
Frequency usage rights	~~W~~	1,606,606		—		—			—		(353,295	)		1,253,311
Land usage rights		542		60		(5	)		—		(280	)		317
Industrial rights		18,790		4,810		(240	)		—		(3,682	)		19,678
Facility usage rights		13,435		1,050		(1	)		497		(2,010	)		12,971
Club memberships(*1)		59,001		617		(2,111	)		—		—			57,507
Other(*2)		552,455		2,610		(1,482	)		52,715		(161,212	)		445,086
	~~W~~	2,250,829		9,147		(3,839	)		53,212		(520,479	)		1,788,870
(In millions of won)
	For the nine-month period ended September 30, 2023
	Beginningbalance		Acquisition		Disposal			Transfer		Amortization			Ending<br>balance
Frequency usage rights	~~W~~	2,082,432		—		—			—		(358,061	)		1,724,371
Land usage rights		1,127		70		—			—		(599	)		598
Industrial rights		19,112		4,397		—			—		(3,390	)		20,119
Facility usage rights		13,245		1,266		(11	)		1,071		(2,071	)		13,500
Club memberships(*1)		56,897		3,390		(776	)		—		—			59,511
Other(*2)		520,587		10,845		(1,037	)		99,381		(163,128	)		466,648
	~~W~~	2,693,400		19,968		(1,824	)		100,452		(527,249	)		2,284,747
(*1)	Club memberships are classified as intangible assets with indefinite useful lives and are not amortized.<br>
---	---
(*2)	Other intangible assets primarily consist of computer software and others.
---	---
(2)	Details of frequency usage rights as of September 30, 2024 are as follows:
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---
	Amount		Description		Commencementof amortization		Completion ofamortization
800 MHz license	~~W~~	76,852		LTE service		Jul. 2021		Jun. 2026
1.8 GHz license		229,197		LTE service		Dec. 2021		Dec. 2026
2.6 GHz license		273,185		LTE service		Sept. 2016		Dec. 2026
2.1 GHz license		172,253		W-CDMA and LTE service		Dec. 2021		Dec. 2026
3.5 GHz license		501,824		5G service		Apr. 2019		Nov. 2028
	~~W~~	1,253,311

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2024 and 2023 (Unaudited)

13.	Borrowings and Debentures
(1)	Changes in long-term borrowings for the nine-month period ended September 30, 2024 are as follows:<br>
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---
	Lender	Annual<br>interest rate (%)		Maturity		Book value
Current						~~W~~	390,000
Non-current							250,000
As of January 1, 2024							640,000
Repayments of long-term borrowings:
	Credit Agricole CIB		3.30		Apr. 29, 2024		(50,000	)
	Mizuho Bank, Ltd.		1.35		May. 20, 2024		(100,000	)
	DBS Bank Ltd.		1.32		May. 28, 2024		(200,000	)
	Nonghyup Bank(*1,2)		MOR + 1.36		Nov. 17, 2024		(30,000	)
							(380,000	)
Current(*3)							210,000
Non-current(*3)							50,000
As of September 30, 2024						~~W~~	260,000
(*1)	6M MOR rates are 3.40% and 3.85% as of September 30, 2024 and December 31, 2023, respectively.<br>
---	---
(*2)	The long-term borrowings are to be repaid by installments on quarterly basis during 2024.<br>
---	---
(*3)	~~W~~200,000 million was reclassified from<br>non-current to current for the nine-month period ended September 30, 2024.
---	---

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2024 and 2023 (Unaudited)

13.	Borrowings and Debentures, Continued
(2)	Changes in debentures for the nine-month period ended September 30, 2024 are as follows:<br>
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---	---	---	---	---
	Purpose		Annual interestrate (%)		Maturity		Face value			Book value
Current							~~W~~	860,000			859,516
Non-current								5,822,580			5,807,423
As of January 1, 2024								6,682,580			6,666,939
Debentures newly issued:
Unsecured corporate bonds		Refinancing fund		3.72		Feb. 22, 2027		180,000			179,233
		Refinancing fund		3.73		Feb. 22, 2029		110,000			109,537
		Refinancing fund		3.92		Feb. 22, 2034		110,000			109,536
								400,000			398,306
Debentures repaid:
Unsecured corporate bonds		Operating fund		2.09		Mar. 6, 2024		(120,000	)		(120,000	)
		Refinancing fund		1.17		Jan. 15, 2024		(80,000	)		(80,000	)
		Operating fund		3.64		May.14, 2024		(150,000	)		(150,000	)
		Operating and<br>refinancing fund		1.49		Jul. 29, 2024		(60,000	)		(60,000	)
								(410,000	)		(410,000	)
Other changes(*1)								21,140			24,839
Current(*2)								1,735,880			1,734,840
Non-current(*2)								4,957,840			4,945,244
As of September 30, 2024							~~W~~	6,693,720			6,680,084
(*1)	Other changes include the effects on foreign currency translation of debentures and changes in discount on<br>issuance of debentures for the nine-month period ended September 30, 2024.
---	---
(*2)	~~W~~1,284,598 million was reclassified from<br>non-current to current for the nine-month period ended September 30, 2024.
---	---

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2024 and 2023 (Unaudited)

14.	Long-Term Payables – Other
(1)	As of September 30, 2024 and December 31, 2023, details of long-term payables – other which<br>consist of payables related to the acquisition of frequency usage rights are as follows (See note 12):
---	---
(In millions of won)
---	---	---	---	---	---	---
	September 30, 2024			December 31, 2023
Long-term payables – other	~~W~~	921,075			1,290,225
Present value discount on long-term payables – other		(17,164	)		(29,772	)
Current portion of long-term payables – other		(366,161	)		(367,770	)
Carrying amount at period end	~~W~~	537,750			892,683
(2)	The sum of portions repaid among the principal of long-term payables – other for the nine-month periods<br>ended September 30, 2024 and 2023 amounts to ~~W~~369,150 million and ~~W~~400,245 million, respectively. The repayment schedule of the principal amount of long-term payables – other as of<br>September 30, 2024 is as follows:
---	---
(In millions of won)
---	---	---
	Amount
Less than 1 year	~~W~~	369,150
1 ~ 3 years		460,538
3 ~ 5 years		91,387
	~~W~~	921,075
15.	Provisions
---	---

Changes in provisions for the nine-month periods ended September 30, 2024 and 2023 are as follows:

(In millions of won)	For the nine-month period ended September 30, 2024												As of September 30, 2024
	Beginningbalance		Increase		Utilization			Reversal			Endingbalance		Current		Non-current
Provision for restoration	~~W~~	100,282		3,416		(1,922	)		(620	)		101,156		31,716		69,440
Emission allowance		822		994		—			(1,794	)		22		22		—
	~~W~~	101,104		4,410		(1,922	)		(2,414	)		101,178		31,738		69,440
(In millions of won)	For the nine-month period ended September 30, 2023												As of September 30, 2023
	Beginningbalance		Increase		Utilization			Reversal			Endingbalance		Current		Non-current
Provision for restoration	~~W~~	95,569		5,675		(1,408	)		—			99,836		29,932		69,904
Emission allowance		1,836		2,073		(519	)		(2,509	)		881		881		—
	~~W~~	97,405		7,748		(1,927	)		(2,509	)		100,717		30,813		69,904

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2024 and 2023 (Unaudited)

16.	Defined Benefit Assets
(1)	Details of defined benefit assets as of September 30, 2024 and December 31, 2023 are as follows:<br>
---	---
(In millions of won)
---	---	---	---	---	---	---
	September 30, 2024			December 31, 2023
Present value of defined benefit obligations	~~W~~	502,311			493,541
Fair value of plan assets		(601,080	)		(578,685	)
	~~W~~	(98,769	)		(85,144	)
(2)	Changes in present value of defined benefit obligations for the nine-month periods ended September 30,<br>2024 and 2023 are as follows:
---	---
(In millions of won)
---	---	---	---	---	---	---
	For the nine-month period ended
	September 30, 2024			September 30, 2023
Beginning balance	~~W~~	493,541			508,622
Current service cost		37,671			42,122
Interest cost		15,110			19,571
Remeasurement
- Adjustment based on experience		(24,240	)		(14,504	)
Benefit paid		(28,930	)		(22,480	)
Others		9,159			3,135
Ending balance	~~W~~	502,311			536,466
(3)	Changes in fair value of plan assets for the nine-month periods ended September 30, 2024 and 2023 are as<br>follows:
---	---
(In millions of won)
---	---	---	---	---	---	---
	For the nine-month period ended
	September 30, 2024			September 30, 2023
Beginning balance	~~W~~	578,685			539,847
Interest income		18,073			20,577
Remeasurement		2,753			1,507
Contribution		35,000			35,000
Benefit paid		(36,368	)		(28,743	)
Others		2,937			(2,885	)
Ending balance	~~W~~	601,080			565,303
(4)	The total cost of defined benefit plan, which is recognized in profit or loss for the nine-month periods ended<br>September 30, 2024 and 2023 are as follows:
---	---
(In millions of won)
---	---	---	---	---	---	---
	For the nine-month period ended
	September 30, 2024			September 30, 2023
Current service cost	~~W~~	37,671			42,122
Net interest income		(2,963	)		(1,006	)
	~~W~~	34,708			41,116

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2024 and 2023 (Unaudited)

17.	Share Capital and Capital Surplus and Others
(1)	The Company’s outstanding share capital consists entirely of common shares with a par value of<br>~~W~~100. The number of authorized, issued and outstanding common shares and details of share capital and capital surplus and others as of September 30, 2024 and December 31, 2023 are as follows:
---	---
(In millions of won, except for share data)
---	---	---	---	---	---	---
	September 30, 2024			December 31, 2023
Number of authorized shares		670,000,000			670,000,000
Number of issued shares		214,790,053			218,833,144
Share capital:
Common shares(*1)	~~W~~	30,493			30,493
Capital surplus and others:
Paid-in surplus		1,771,000			1,771,000
Treasury shares		(92,962	)		(301,981	)
Hybrid bonds(*2)		398,509			398,509
Share option(Note 18)		13,682			9,818
Others		(6,643,280	)		(6,643,493	)
	~~W~~	(4,553,051	)		(4,766,147	)
(*1)	The Company retired 4,043,091 treasury shares with reduction of its unappropriated retained earnings, and<br>accordingly, the Company’s shares issued have decreased without a change in share capital for the nine-month period ended September 30, 2024. Also, in 2002 and 2003, the Company retired treasury shares with reduction of its retained<br>earnings before appropriation, and as a result, the Company’s issued shares have decreased without a change in share capital.
---	---
(*2)	As there is no contractual obligation to deliver financial assets to the holders of hybrid bonds, the Company<br>classified the hybrid bonds as equity. When in liquidation or bankruptcy, these hybrid bonds are senior only to common shares.
---	---
(2)	There were no changes in share capital for the nine-month periods ended September 30, 2024 and 2023, and<br>details of shares outstanding as of September 30, 2024 and 2023 are as follows:
---	---
(In shares)
---	---	---	---	---	---	---	---	---	---	---	---	---
	September 30, 2024						September 30, 2023
	Issuedshares		Treasuryshares		Outstandingshares		Issued shares		Treasuryshares		Outstandingshares
Shares outstanding		214,790,053		1,903,711		212,886,342		218,833,144		2,420,246		216,412,898
(3)	Details of treasury shares as of September 30, 2024 and December 31, 2023 are as follows:<br>
---	---
(In millions of won, except for share data)
---	---	---	---	---
	September 30, 2024		December 31, 2023
Number of shares(*)		1,903,711		6,133,414
Acquisition cost	~~W~~	92,962		301,981
(*)	The Company distributed 503,612 treasury shares (~~W~~24,807 million for acquisition costs)<br>as bonus payment to its employees, resulting in a gain on disposal of treasury shares of ~~W~~181 million for the nine-month period ended September 30, 2024. Also, the Company acquired 317,000 of its treasury shares for<br>~~W~~15,788 million for the purpose of increasing shareholders’ value through the stabilization of its stock price for the nine-month period ended September 30, 2024.
---	---

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2024 and 2023 (Unaudited)

18.	Share-Based Payment Arrangement
(1)	The terms and conditions related to the grants of the share-based payment arrangement are as follows:<br>
---	---
1)	Share-based payment arrangements with cash alternatives
---	---
	Series
---	---	---	---	---
	5	6	*7-1()**	7-2
Grant date	March 26, 2020	March 25, 2021	March 25, 2022
Types of shares to be issued	Registered common shares
Grant method	Reissue of treasury shares,<br> <br>Cash settlement
Number of shares (in share)	376,313	83,148	98,425	109,704
Exercise price (in won)	38,452	50,276	56,860	56,860
Exercise period	Mar. 27, 2023	Mar. 26, 2023	Mar. 26, 2025	Mar. 26, 2024
	~	~	~	~
	Mar. 26, 2027	Mar. 25, 2026	Mar. 25, 2029	Mar. 25, 2027
Vesting conditions	3 years’<br> <br>service from<br><br><br>the grant date	2 years’<br> <br>service from<br><br><br>the grant date	2 years’<br> <br>service from<br><br><br>the grant date	2 years’<br> <br>service from<br><br><br>the grant date
(*)	For the nine-month period ended September 30, 2024, 196,850 shares of stock options granted in the 7^th^ -1 series were canceled.
---	---

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

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2024 and 2023 (Unaudited)

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

The Company newly established Performance Share Units (“PSU”) for executives of the Company and major subsidiaries as part of the compensation based on the growth of corporate value for the nine-month period ended September 30, 2024 and for the year ended December 31, 2023, and the details are as follows:

	PSU of SK Telecom Co., Ltd.
Grant date	March 28, 2023	March 26, 2024
Types of shares to be issued	Registered common shares
Grant method	Reissue of treasury shares
Number of shares(*)	Fluctuates according to the share price on the expiration date and<br>the cumulative increase<br>rate of KOSPI200
Reference share price (in won)	47,280	52,720
Reference index (KOSPI200)	315	362
Maturity (exercise date)	The day in which the annual general meeting of shareholders is held after 3 years from the grant date
Vesting conditions	Full service in the year in which the grant date is included
(*)	The initial amount granted is a total of ~~W~~10,813 million for 2023 and<br>~~W~~12,835 million for 2024, and the amount calculated according to the adjustment rate based on the share price on the expiration date and the cumulative increase rate of KOSPI200 will be paid in shares.
---	---
(2)	Share compensation expense for share-based payment arrangements with cash alternatives recognized for the<br>nine-month period ended September 30, 2024 and the remaining share compensation expense to be recognized in subsequent periods are as follows:
---	---
(In millions of won)
---	---	---
	Share compensation expense
As of December 31, 2023	~~W~~	157,750
For the nine-month period ended September 30, 2024		953
In subsequent periods		—
	~~W~~	158,703

The liabilities recognized by the Company in relation to the share-based payment arrangement with cash alternatives are ~~W~~7,840 million and ~~W~~5,530 million, respectively, which are included in accrued expenses as of September 30, 2024 and December 31, 2023.

As of September 30, 2024 and December 31, 2023, the carrying amounts of liabilities recognized by the Company in relation to the cash-settled share-based payment arrangement are ~~W~~209 million and ~~W~~1,133 million, respectively.

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2024 and 2023 (Unaudited)

18.	Share-Based Payment Arrangement, Continued
(3)	The Company used binomial option-pricing model in the measurement of the fair value of the share options at the<br>remeasurement date and the inputs used in the model are as follows:
---	---
1)	Share-based payment arrangement with cash alternatives
---	---
(i)	SK Telecom Co., Ltd.
---	---
(In won)	Series
---	---	---	---	---	---	---	---	---	---	---	---	---
	5			6			7-1			7-2
Risk-free interest rate		2.83	%		2.87	%		2.91	%		2.83	%
Estimated option’s life		7 years			5 years			7 years			5 years
Share price on the remeasurement date		55,900			55,900			55,900			55,900
Expected volatility		15.80	%		15.80	%		15.80	%		15.80	%
Expected dividends yield		6.33	%		6.33	%		6.33	%		6.33	%
Exercise price		38,452			50,276			56,860			56,860
Per-share fair value of the option		17,448			6,219			3,980			3,330
(ii)	SK Square Co., Ltd.
---	---
(In won)	Series
---	---	---	---	---	---	---
	5			6
Risk-free interest rate		1.52	%		1.55	%
Estimated option’s life		7 years			5 years
Share price<br>(Closing price on the preceding day)		34,900			49,800
Expected volatility		8.10	%		25.70	%
Expected dividends yield		5.70	%		4.00	%
Exercise price		38,452			50,276
Per-share fair value of the option		192			8,142

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2024 and 2023 (Unaudited)

18. Share-Based Payment Arrangement, Continued

(3)	The Company used binomial option-pricing model in the measurement of the fair value of the share options at the<br>remeasurement date and the inputs used in the model are as follows, Continued:
2)	Cash-settled share-based payment arrangement
---	---
(In won)	Granted in 2022
---	---	---	---
	Share appreciation rights of<br>SK Telecom Co., Ltd.
Risk-free interest rate		2.95	%
Estimated option’s life		3.25 years
Share price on the remeasurement date		55,900
Expected volatility		15.80	%
Expected dividends yield		6.33	%
Exercise price		56,860
Per-share fair value of the option		1,599
3)	Equity-settled share-based payment arrangement
---	---
(In won)	Granted in 2023PSU of SK Telecom Co., Ltd.			Granted in 2024PSU of SK Telecom Co., Ltd.
---	---	---	---	---	---	---
Risk-free interest rate		3.26	%		3.30	%
Estimated option’s life		3 years			3 years
Share price on the grant date		48,500			54,100
Expected volatility		18.67	%		15.95	%
Expected dividends yield		4.90	%		5.40	%
Per-share fair value of the option		27,525			29,200

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2024 and 2023 (Unaudited)

19.	Retained Earnings

Retained earnings as of September 30, 2024 and December 31, 2023 are as follows:

(In millions of won)
	September 30, 2024		December 31, 2023
Appropriated:
Legal reserve	~~W~~	22,320		22,320
Reserve for business expansion		9,981,138		9,831,138
Reserve for technology development		4,715,300		4,565,300
		14,696,438		14,396,438
Unappropriated		489,380		613,715
	~~W~~	15,208,138		15,032,473
20.	Reserves
---	---
(1)	Details of reserves, net of taxes, as of September 30, 2024 and December 31, 2023 are as follows:<br>
---	---
(In millions of won)
---	---	---	---	---	---	---
	September 30, 2024			December 31, 2023
Valuation gain on FVOCI	~~W~~	116,147			139,548
Valuation loss on derivatives		(4,043	)		(274	)
	~~W~~	112,104			139,274
(2)	Changes in reserves for the nine-month periods ended September 30, 2024 and 2023 are as follows:<br>
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---	---
	Valuation gain (loss) onfinancial assets at FVOCI			Valuation gain (loss)on derivatives			Total
Balance at January 1, 2023	~~W~~	156,907			11,214			168,121
Changes, net of taxes		(122,668	)		(8,590	)		(131,258	)
Balance at September 30, 2023		34,239			2,624			36,863
Balance at January 1, 2024		139,548			(274	)		139,274
Changes, net of taxes		(23,401	)		(3,769	)		(27,170	)
Balance at September 30, 2024	~~W~~	116,147			(4,043	)		112,104

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2024 and 2023 (Unaudited)

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)	2024				2023
	Three-monthperiod ended<br>September 30		Nine-monthperiod endedSeptember 30		Three-monthperiod ended<br>September 30		Nine-month<br>period ended<br>September 30
Products transferred at a point in time:
Product sales	~~W~~	41,780		123,471		26,196		75,387
Services transferred over time:
Wireless service revenue(*1)		2,672,066		8,010,165		2,654,325		7,899,652
Cellular interconnection revenue		106,202		327,488		107,029		333,848
Others(*2)		383,181		1,122,313		360,897		1,076,043
		3,161,449		9,459,966		3,122,251		9,309,543
	~~W~~	3,203,229		9,583,437		3,148,447		9,384,930
(*1)	Wireless service revenue includes revenue from wireless voice and data transmission services, which is<br>collected from the wireless subscribers.
---	---
(*2)	Other revenue includes revenue from billing and collection services as well as other miscellaneous services.<br>
---	---

The Company has a right to receive consideration from a customer in an amount that corresponds directly with the value of telecommunications service provided; thus, the Company applies practical expedient method and recognizes revenue in the amount to which the Company has a right to invoice.

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

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2024 and 2023 (Unaudited)

22.	Other Operating Expenses

Details of other operating expenses for the three and nine-month periods ended September 30, 2024 and 2023 are as follows:

(In millions of won)	2024				2023
	Three-monthperiod endedSeptember 30		Nine-month<br>period endedSeptember 30		Three-monthperiod endedSeptember 30		Nine-month<br>period endedSeptember 30
Communication	~~W~~	6,611		20,153		6,756		20,204
Utilities		106,953		297,385		104,699		274,882
Taxes and dues		2,128		24,182		220		22,374
Repair		61,907		191,239		63,326		182,611
Research and development		96,066		266,334		86,796		240,600
Training		5,395		15,116		8,036		20,040
Bad debt for accounts receivable – trade		6,547		21,890		6,205		20,884
Supplies and others		6,790		31,255		9,654		33,382
	~~W~~	292,397		867,554		285,692		814,977
23.	Other Non-Operating Income and Expenses
---	---

Details of other non-operating income and expenses for the three and nine-month periods ended September 30, 2024 and 2023 are as follows:

(In millions of won)	2024				2023
	Three-monthperiod ended<br>September 30		Nine-month<br>period endedSeptember 30		Three-monthperiod ended<br>September 30		Nine-month<br>period ended<br>September 30
Other Non-operating Income:
Gain on disposal of property and equipment and intangible assets	~~W~~	2,697		9,845		4,508		15,035
Others		2,947		8,098		2,897		6,289
	~~W~~	5,644		17,943		7,405		21,324
Other Non-operating Expenses:
Loss on disposal of property and equipment and intangible assets	~~W~~	3,997		7,637		1,328		3,064
Donations		1,296		9,224		584		10,916
Bad debt for accounts receivable – other		588		3,108		2,103		3,976
Others		618		1,246		778		2,320
	~~W~~	6,499		21,215		4,793		20,276

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2024 and 2023 (Unaudited)

24.	Finance Income and Costs
(1)	Details of finance income and costs for the three and nine-month periods ended September 30, 2024 and 2023<br>are as follows:
---	---
(In millions of won)	2024					2023
---	---	---	---	---	---	---	---	---	---	---
	Three-monthperiod endedSeptember 30			Nine-monthperiod endedSeptember 30		Three-monthperiod endedSeptember 30			Nine-monthperiod endedSeptember 30
Finance Income:
Interest income	~~W~~	9,252			27,947		7,701			25,288
Dividends		5,483			207,112		5,178			200,406
Gain on foreign currency transactions		1,697			4,920		3,073			7,063
Gain on foreign currency translations		(816	)		671		429			805
Gain relating to financial instruments at FVTPL		520			18,103		115			78,777
	~~W~~	16,136			258,753		16,496			312,339
Finance Costs:
Interest expenses	~~W~~	75,687			237,062		81,763			244,263
Loss on sale of accounts receivable – other		7,382			28,426		14,101			48,595
Loss on foreign currency transactions		1,820			4,674		2,893			6,873
Loss on foreign currency translations		72			742		(57	)		204
Loss relating to financial instruments at FVTPL		95,353			95,419		3			23,581
	~~W~~	180,314			366,323		98,703			323,516
(2)	Details of interest income included in finance income for the three and nine-month periods ended<br>September 30, 2024 and 2023 are as follows:
---	---
(In millions of won)	2024				2023
---	---	---	---	---	---	---	---	---
	Three-monthperiod ended<br>September 30		Nine-month<br>period endedSeptember 30		Three-monthperiod endedSeptember 30		Nine-monthperiod endedSeptember 30
Interest income on cash equivalents and short-term financial instruments	~~W~~	4,748		15,035		3,019		11,346
Interest income on loans and others		4,504		12,912		4,682		13,942
	~~W~~	9,252		27,947		7,701		25,288
(3)	Details of interest expenses included in finance costs for the three and nine-month periods ended<br>September 30, 2024 and 2023 are as follows:
---	---
(In millions of won)	2024				2023
---	---	---	---	---	---	---	---	---
	Three-monthperiod endedSeptember 30		Nine-monthperiod endedSeptember 30		Three-monthperiod endedSeptember 30		Nine-month<br>period endedSeptember 30
Interest expense on borrowings	~~W~~	2,716		12,817		7,634		21,088
Interest expense on debentures		53,912		163,120		49,594		150,234
Others		19,059		61,125		24,535		72,941
	~~W~~	75,687		237,062		81,763		244,263

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2024 and 2023 (Unaudited)

24.	Finance Income and Costs, Continued
(4)	Details of impairment losses for financial assets for the three and nine-month periods ended September 30,<br>2024 and 2023 are as follows:
---	---
(In millions of won)	2024				2023
---	---	---	---	---	---	---	---	---
	Three-monthperiod endedSeptember 30		Nine-month<br>period endedSeptember 30		Three-monthperiod endedSeptember 30		Nine-month<br>period endedSeptember 30
Accounts receivable – trade	~~W~~	6,547		21,890		6,205		20,884
Other receivables		588		3,108		2,103		3,976
	~~W~~	7,135		24,998		8,308		24,860
25.	Income Tax Expense
---	---

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2024 and 2023 (Unaudited)

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
1)	Basic earnings per share for the three and nine-month periods ended September 30, 2024 and 2023 are<br>calculated as follows:
---	---
(In millions of won, except for share data and basic earnings per share)
---	---	---	---	---	---	---	---	---	---	---	---	---
	2024						2023
	Three-monthperiod endedSeptember 30			Nine-month<br>period endedSeptember 30			Three-monthperiod endedSeptember 30			Nine-monthperiod endedSeptember 30
Profit for the period	~~W~~	222,357			994,795			250,414			945,368
Interest on hybrid bonds		(4,950	)		(14,850	)		(4,950	)		(12,333	)
Profit for the period on common shares		217,407			979,945			245,464			933,035
Weighted average number of common shares outstanding		212,886,342			212,835,311			217,694,070			218,138,543
Basic earnings per share (in won)	~~W~~	1,021			4,604			1,128			4,277
2)	The weighted average number of common shares outstanding for the three and nine-month periods ended<br>September 30, 2024 and 2023 are calculated as follows:
---	---
(In shares)				Weighted average number ofcommon shares
---	---	---	---	---	---	---	---	---	---
	Number of<br>common shares			Three-monthperiod endedSeptember 30			Nine-monthperiod endedSeptember 30
Issued shares as of January 1, 2024		218,833,144			218,833,144			218,833,144
Treasury shares as of January 1, 2024		(6,133,414	)		(6,133,414	)		(6,133,414	)
Acquisition of treasury shares		(317,000	)		(317,000	)		(314,748	)
Disposal of treasury shares		503,612			503,612			450,329
		212,886,342			212,886,342			212,835,311
(In shares)				Weighted average number ofcommon shares
---	---	---	---	---	---	---	---	---	---
	Number of<br>common shares			Three-monthperiod ended<br>September 30			Nine-monthperiod endedSeptember 30
Issued shares as of January 1, 2023		218,833,144			218,833,144			218,833,144
Treasury shares as of January 1, 2023		(801,091	)		(801,091	)		(801,091	)
Acquisition of treasury shares		(2,060,242	)		(779,070	)		(262,544	)
Disposal of treasury shares		441,087			441,087			369,034
		216,412,898			217,694,070			218,138,543

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2024 and 2023 (Unaudited)

26.	Earnings per Share, Continued
(2)	Diluted earnings per share
---	---
1)	Diluted earnings per share for the three and nine-month periods ended September 30, 2024 and 2023 are<br>calculated as follows:
---	---
(In millions of won, except for share data and diluted earnings per share)
---	---	---	---	---	---	---	---	---
	2024				2023
	Three-monthperiod endedSeptember 30		Nine-month<br>period endedSeptember 30		Three-monthperiod endedSeptember 30		Nine-monthperiod endedSeptember 30
Profit for the period on common shares	~~W~~	217,407		979,945		245,464		933,035
Adjusted weighted average number of common shares outstanding		213,479,404		213,414,191		217,764,355		218,210,241
Diluted earnings per share (in won)	~~W~~	1,018		4,592		1,127		4,276
2)	The adjusted weighted average number of common shares outstanding for the three and nine-month periods ended<br>September 30, 2024 and 2023 are calculated as follows:
---	---
(In shares)	2024
---	---	---	---	---
	Three-month periodended September 30		Nine-month periodended September 30
Outstanding shares as of January 1, 2024		212,699,730		212,699,730
Effect of treasury shares		186,612		135,581
Effect of share option		593,062		578,880
Adjusted weighted average number of common shares outstanding		213,479,404		213,414,191
(In shares)	2023
---	---	---	---	---	---
	Three-month periodended September 30			Nine-month periodended September 30
Outstanding shares as of January 1, 2023		218,032,053			218,032,053
Effect of treasury shares		(337,983	)		106,490
Effect of share option		70,285			71,698
Adjusted weighted average number of common shares outstanding		217,764,355			218,210,241

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2024 and 2023 (Unaudited)

27.	Categories of Financial Instruments
(1)	Financial assets by category as of September 30, 2024 and December 31, 2023 are as follows:<br>
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---	---	---
	September 30, 2024
	Financialassets atFVTPL		Equityinstruments atFVOCI		Financial<br>assets atamortized cost		Derivativeshedginginstrument		Total
Cash and cash equivalents	~~W~~	10,285		—		1,034,300		—		1,044,585
Financial instruments		28,988		—		79,354		—		108,342
Long-term investment securities(*)		76,152		1,229,574		—		—		1,305,726
Accounts receivable – trade		—		—		1,651,107		—		1,651,107
Loans and other receivables		364,933		—		618,839		—		983,772
Derivative financial assets		2,323		—		—		126,112		128,435
	~~W~~	482,681		1,229,574		3,383,600		126,112		5,221,967
(*)	The Company designated ~~W~~1,229,574 million of equity instruments that are not held for<br>trading as financial assets at FVOCI.
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---	---	---
	December 31, 2023
	Financialassets atFVTPL		Equityinstrumentsat FVOCI		Financial<br>assets atamortized cost		Derivativeshedginginstrument		Total
Cash and cash equivalents	~~W~~	4,774		—		626,292		—		631,066
Financial instruments		47,364		—		139,354		—		186,718
Long-term investment securities(*)		218,685		1,207,605		—		—		1,426,290
Accounts receivable – trade		—		—		1,495,617		—		1,495,617
Loans and other receivables		273,945		—		612,432		—		886,377
Derivative financial assets		2,323		—		—		116,210		118,533
	~~W~~	547,091		1,207,605		2,873,695		116,210		4,744,601
(*)	The Company designated ~~W~~1,207,605 million of equity instruments that are not held for<br>trading as financial assets at FVOCI.
---	---

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2024 and 2023 (Unaudited)

27.	Categories of Financial Instruments, Continued
(2)	Financial liabilities by category as of September 30, 2024 and December 31, 2023 are as follows:<br>
---	---
(In millions of won)
---	---	---	---	---	---	---
	September 30, 2024
	Financial liabilities atFVTPL		Financial liabilities atamortized cost		Total
Derivative financial liabilities	~~W~~	391,265		—		391,265
Borrowings		—		260,000		260,000
Debentures		—		6,680,084		6,680,084
Lease liabilities(*)		—		1,093,118		1,093,118
Accounts payable – other and others		—		3,341,257		3,341,257
	~~W~~	391,265		11,374,459		11,765,724
(In millions of won)
---	---	---	---	---	---	---
	December 31, 2023
	Financial liabilities atFVTPL		Financial liabilities atamortized cost		Total
Derivative financial liabilities	~~W~~	295,876		—		295,876
Borrowings		—		640,000		640,000
Debentures		—		6,666,939		6,666,939
Lease liabilities(*)		—		1,226,545		1,226,545
Accounts payable – other and others		—		4,146,076		4,146,076
	~~W~~	295,876		12,679,560		12,975,436
(*)	The categorization of financial liabilities is not applicable to lease liabilities, but they are classified as<br>financial liabilities measured at amortized cost, considering the nature of measuring liabilities.
---	---

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2024 and 2023 (Unaudited)

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

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

The Company’s financial assets consist of cash and cash equivalents, financial instruments, long-term investment securities, accounts receivable – trade and 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 occurs on forecasted transactions and recognized assets and liabilities which are denominated in a currency other than the functional currency of the Company.

Monetary assets and liabilities denominated in foreign currencies as of September 30, 2024 are as follows:

(In millions of won, thousands of foreign currencies)
				Liabilities
		Won equivalent		Foreign currencies		Won equivalent
	26,800	~~W~~	35,366		716,460	~~W~~	945,441
	7,743		11,414		48		71
Others	—		188		—		1
		~~W~~	46,968			~~W~~	945,513

All values are in US Dollars.

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

As of September 30, 2024, a hypothetical change in exchange rates by 10% would have increased (decreased) the Company’s profit before income tax and equity as follows:

(In millions of won)
					Equity
		If decreased by 10%			If increased by 10%		If decreased by 10%
	1,109		(1,109	)	~~W~~	1,109		(1,109	)
	1,134		(1,134	)		1,134		(1,134	)
Others	19		(19	)		19		(19	)
	2,262		(2,262	)	~~W~~	2,262		(2,262	)

All values are in Euros.

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2024 and 2023 (Unaudited)

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

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

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

As of September 30, 2024, floating-rate borrowings and debentures amount to ~~W~~10,000 million and ~~W~~395,880 million, respectively, and the Company has entered into interest rate swaps to hedge interest rate risk related to the floating-rate debentures. Therefore, profit before income tax for the nine-month period ended September 30, 2024 would not have been affected by the changes in interest rates of floating-rate debentures. If the interest rate increases (decreases) 1%p with all other variables held constant, profit before income tax and equity for the nine-month period ended September 30, 2024, would change by ~~W~~75 million in relation to the floating-rate borrowings which have not entered into interest rate swaps.

(iii)	Price fluctuations risk

As of September 30, 2024, the Company holds equity instruments in an active trading market and is exposed to price fluctuation risk accordingly. Assuming all other variables remain constant, the impact of changes in per-share stock price of the equity securities on profit before income tax and equity for the nine-month period ended September 30, 2024 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%
~~W~~—	—	~~W~~75,035	(75,035)

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2024 and 2023 (Unaudited)

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

The maximum credit exposure as of September 30, 2024 and December 31, 2023 are as follows:

(In millions of won)
	September 30, 2024		December 31, 2023
Cash and cash equivalents	~~W~~	1,044,545		631,021
Financial instruments		108,342		186,718
Accounts receivable – trade		1,651,107		1,495,617
Contract assets		20,126		21,613
Loans and other receivables		983,772		886,377
Derivative financial assets		128,435		118,533
	~~W~~	3,936,327		3,339,879

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

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

The Company’s maximum exposure to credit risk is equal to each financial asset’s carrying amount as of September 30, 2024.

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2024 and 2023 (Unaudited)

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

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

Contractual maturities of financial liabilities as of September 30, 2024 are as follows:

(In millions of won)
	Carrying<br>amount		Contractualcash flows		Less than<br>1 year		1 - 5<br>years		More than<br>5 years
Borrowings(*)	~~W~~	260,000		265,792		215,181		50,611		—
Debentures(*)		6,680,084		7,595,387		1,947,843		3,539,272		2,108,272
Lease liabilities		1,093,118		1,191,086		332,840		736,649		121,597
Accounts payable -other and others(*)		3,341,257		3,402,683		2,813,688		588,995		—
	~~W~~	11,374,459		12,454,948		5,309,552		4,915,527		2,229,869

(*) The contractual cash flow is amount that includes interest payables.

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

As of September 30, 2024, periods in which cash flows from cash flow hedge derivatives are expected to occur are as follows:

(In millions of won)
	Carryingamount		Contractualcash flows		Less than<br>1 year		1 - 5<br>years
Assets	~~W~~	126,112		132,327		50,842		81,485
(2)	Capital management
---	---

The Company manages its capital to ensure that it will be able to continue as a going concern while maximizing the return to shareholders through the optimization of its debt and equity structure. The overall strategy of the Company is the same as that for the year ended December 31, 2023.

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

The Company’s debt-equity ratios as of September 30, 2024 and December 31, 2023 are as follows:

(In millions of won)
	September 30, 2024			December 31, 2023
Total liabilities	~~W~~	13,512,603			14,559,839
Total equity		10,797,684			10,436,093
Debt-equity ratios		125.14	%		139.51	%

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2024 and 2023 (Unaudited)

28.	Financial Risk Management, Continued
(3)	Fair value
---	---
1)	The fair value and carrying amount of financial assets and liabilities including fair value hierarchy as of<br>September 30, 2024 and December 31, 2023 are as follows:
---	---
(In millions of won)	September 30, 2024
---	---	---	---	---	---	---	---	---	---	---
	Carryingamount		Level 1		Level 2		Level 3		Total
Financial assets that are measured at fair value:
FVTPL	~~W~~	482,681		—		404,206		78,475		482,681
Derivative hedging instruments		126,112		—		126,112		—		126,112
FVOCI		1,229,574		1,003,799		—		225,775		1,229,574
	~~W~~	1,838,367		1,003,799		530,318		304,250		1,838,367
Financial liabilities that are measured at fair value:
Derivative financial liabilities	~~W~~	391,265		—		95,389		295,876		391,265
Financial liabilities that are not measured at fair value:
Borrowings	~~W~~	260,000		—		261,059		—		261,059
Debentures		6,680,084		—		6,649,808		—		6,649,808
Long-term payables – other		903,911		—		924,199		—		924,199
	~~W~~	7,843,995		—		7,835,066		—		7,835,066
(In millions of won)	December 31, 2023
---	---	---	---	---	---	---	---	---	---	---
	Carryingamount		Level 1		Level 2		Level 3		Total
Financial assets that are measured at fair value:
FVTPL	~~W~~	547,091		—		326,083		221,008		547,091
Derivative hedging instruments		116,210		—		116,210		—		116,210
FVOCI		1,207,605		1,131,033		—		76,572		1,207,605
	~~W~~	1,870,906		1,131,033		442,293		297,580		1,870,906
Financial liabilities that are measured at fair value:
Derivative financial liabilities	~~W~~	295,876		—		—		295,876		295,876
Financial liabilities that are not measured at fair value:
Borrowings	~~W~~	640,000		—		638,536		—		638,536
Debentures		6,666,939		—		6,503,016		—		6,503,016
Long-term payables – other		1,260,453		—		1,294,977		—		1,294,977
	~~W~~	8,567,392		—		8,436,529		—		8,436,529

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2024 and 2023 (Unaudited)

28.	Financial Risk Management, Continued
(3)	Fair value, Continued
---	---
1)	Fair value and carrying amount of financial assets and liabilities including fair value hierarchy as of<br>September 30, 2024 and December 31, 2023 are as follows, Continued:
---	---

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

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

The Company uses various valuation methods for determination of fair value of financial instruments that are not traded in an active market. Derivative financial contracts and long-term liabilities are measured using the discounted present value methods. Other financial assets are determined using the methods, such as discounted cash flow and market approach. Inputs used to such valuation methods include swap rate, interest rate, 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 September 30, 2024 are as follows:

	Interest rate
Derivative instruments		3.75% ~ 4.00%
Borrowings and debentures		3.32% ~ 3.39%
Long-term payables – other		3.27% ~ 3.33%
2)	There have been no transfers between Level 1 and Level 2 for the nine-month period ended<br>September 30, 2024. The changes in financial assets and liabilities classified as Level 3 for the nine -month period ended September 30, 2024 are as follows:
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	Balance as of<br>January 1, 2024			Gain		OCI			Acquisition		Disposal			Transfer			Balance as of<br>September 30, 2024
Financial assets:																			****
FVTPL	~~W~~	221,008			16,424		—			—		(1,429	)		(157,528	)		78,475
FVOCI		76,572			—		(173	)		1,000		(177	)		148,553			225,775
	~~W~~	297,580			16,424		(173	)		1,000		(1,606	)		(8,975	)		304,250
Financial liabilities:																			****
FVTPL	~~W~~	(295,876	)		—		—			—		—			—			(295,876	)

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2024 and 2023 (Unaudited)

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

The carrying amounts of financial instruments recognized of which offset agreements are applicable as of September 30, 2024 and December 31, 2023 are as follows:

(In millions of won)
	September 30, 2024
	Gross financialinstruments recognized		Amount offset			Net financial instrumentspresented on the interimseparate statement offinancial position
Financial assets:
Accounts receivable – trade and others	~~W~~	69,699		(69,699	)		—
Financial liabilities:
Accounts payable –<br><br><br>other and others	~~W~~	71,483		(69,699	)		1,784
(In millions of won)
	December 31, 2023
	Gross financialinstruments recognized		Amount offset			Net financial instrumentspresented on the<br>separate statement offinancial position
Financial assets:
Accounts receivable – trade and others	~~W~~	72,597		(72,597	)		—
Financial liabilities:
Accounts payable –<br><br><br>other and others	~~W~~	74,388		(72,597	)		1,791

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2024 and 2023 (Unaudited)

29.	Transactions with Related Parties
(1)	List of the Company’s related parties
---	---
Relationship	Company
---	---
Ultimate controlling entity	SK Inc.
Subsidiaries	SK Broadband Co., Ltd. and 22 others(*)
Joint venture	UTC Kakao-SK Telecom ESG Fund
Associates	SK China Company Ltd. and 43 others
Others	The Ultimate controlling entity’s subsidiaries and associates and others
(*)	As of September 30, 2024, subsidiaries of the Company are as follows:
---	---
Subsidiary		*Ownershippercentage(%)(1)**		Primary business
---	---	---	---	---
Subsidiaries owned by<br><br><br>the Company	SK Telink Co., Ltd.		100.0	International telecommunication and<br> <br>Mobile<br>Virtual Network Operator service
	SK Communications Co., Ltd.		100.0	Internet website services
	SK Broadband Co., Ltd.		74.4	Fixed-line telecommunication services
	PS&Marketing Corporation		100.0	Communications device retail business
	SERVICE ACE Co., Ltd.		100.0	Call center management service
	SERVICE TOP Co., Ltd.		100.0	Call center management service
	SK O&S Co., Ltd.		100.0	Base station maintenance service
	SK Telecom China Holdings Co., Ltd.		100.0	Investment (Holdings company)
	SK Global Healthcare Business Group Ltd.		100.0	Investment
	YTK Investment Ltd.		100.0	Investment
	Atlas Investment		100.0	Investment
	SK Telecom Americas, Inc.		100.0	Information gathering and consulting
	Happy Hanool Co., Ltd.		100.0	Service
	SK stoa Co., Ltd.		100.0	Other telecommunication retail business
	SAPEON Inc.		62.5	Manufacturing non-memory and other electronic integrated circuits
Subsidiaries owned by SK Broadband Co., Ltd.	Home & Service Co., Ltd.<br> <br>Media<br>S Co., Ltd.		100.0<br> <br>100.0	Operation of information and communication facility<br><br><br>Production and supply services of broadcasting programs
Subsidiary owned by PS&Marketing Corporation	SK m&service Co., Ltd.		100.0	Database and internet website service
Subsidiary owned by SAPEON Inc.	SAPEON Korea Inc.		100.0	Manufacturing non-memory and other electronic integrated circuits
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
Others(*2)	SK Telecom Innovation Fund, L.P.		100.0	Investment
	SK Telecom China Fund I L.P.		100.0	Investment

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2024 and 2023 (Unaudited)

29.	Transactions with Related Parties, Continued
(1)	List of related parties, Continued:
---	---
(*1)	The ownership interest represents direct ownership interest in subsidiaries either by the Company or<br>subsidiaries of the Company.
---	---
(*2)	Others are owned by Atlas Investment and another subsidiary of the Company.
---	---

For the periods presented, the Company belongs to SK Group, a conglomerate as defined in the Monopoly Regulation and Fair Trade Act of theRepublic of Korea. All of the other entities included in SK Group are considered related parties of the Company.

(2)	Compensation for the key management

The Company considers registered directors who have substantial role and responsibility in planning, operations and relevant controls of the business as key management. The compensations given to such key management for the three and nine-month periods ended September 30, 2024 and 2023 are as follows:

(In millions of won)
	2024				2023
	Three-monthperiod endedSeptember 30		Nine-monthperiod endedSeptember 30		Three-monthperiod endedSeptember 30		Nine-monthperiod endedSeptember 30
Salaries	~~W~~	768		4,906		602		3,532
Defined benefit plan expenses		204		1,159		158		846
Share option		1,169		882		933		1,596
	~~W~~	2,141		6,947		1,693		5,974

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

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2024 and 2023 (Unaudited)

29.	Transactions with Related Parties, Continued
(3)	Transactions with the related parties for the three and nine-month periods ended September 30, 2024 and<br>2023 are as follows:
---	---
(In millions of won)		For the period ended September 30, 2024
---	---	---	---	---	---	---	---	---	---	---	---	---	---
		Operating revenue<br>and others				Operating expenses<br>*and others (1)**				Acquisition ofpropertyand equipment andothers
Scope	Company	Three-month		Nine-<br>month		Three-month		Nine-<br>month		Three-month		Nine-<br>month
Ultimate controlling entity	SK Inc.(*2)	~~W~~	2,575		7,575		136,671		423,154		18,465		25,318
Subsidiaries	SK Broadband Co., Ltd.(*3)		37,890		265,806		151,017		451,550		759		840
	PS&Marketing Corporation(*4)		1,458		4,481		343,452		945,663		300		524
	SK O&S Co., Ltd.		733		2,382		64,449		194,018		8,416		14,814
	SK Telink Co., Ltd.(*5)		28,398		102,762		4,202		11,950		—		—
	SERVICE ACE Co., Ltd.(*6)		2,653		11,755		30,039		92,231		—		—
	SERVICE TOP Co., Ltd.(*7)		1,817		11,200		28,577		88,339		—		—
	SK Communications Co., Ltd.		383		1,087		1,021		1,848		179		636
	Others		2,229		7,261		11,155		29,600		187		197
			75,561		406,734		633,912		1,815,199		9,841		17,011
Associates	F&U Credit information Co., Ltd.		190		568		11,076		33,668		—		203
	Daehan Kanggun BcN Co., Ltd.		3,565		9,227		—		—		—		—
	Others(*8)		191		5,645		2,319		9,619		—		—
			3,946		15,440		13,395		43,287		—		203
Others	SK Innovation Co., Ltd.		1,108		4,588		3,669		9,431		—		—
	SK Networks Co., Ltd.		265		835		2,892		8,293		—		—
	SK Networks Service Co., Ltd.		117		367		11,055		29,867		551		1,285
	SK Energy Co., Ltd.		346		1,147		13		158		—		—
	Content Wavve Corp.		3,992		9,151		22,890		63,214		—		—
	Happy Narae Co., Ltd.		38		117		2,268		7,194		19,215		41,406
	SK Shieldus Co., Ltd.		14,087		38,230		20,370		67,593		1,677		2,707
	Eleven Street Co., Ltd.		1,498		5,499		7,313		20,545		—		—
	SK Planet Co., Ltd.		1,284		3,866		19,190		54,286		546		1,158
	SK hynix Inc.		11,484		29,066		31		175		—		—
	Tmap Mobility Co., Ltd.		3,402		11,817		1,351		4,221		—		—
	Dreamus Company		1,073		3,272		16,447		49,488		265		265
	One Store Co., Ltd.		3,246		11,251		14		52		—		—
	UNA Engineering Inc.<br> <br>(Formerly, UbiNS<br>Co., Ltd.)		—		—		2,603		5,748		1,772		5,080
	Others(*9)		8,586		26,562		4,908		17,443		677		17,400
			50,526		145,768		115,014		337,708		24,703		69,301
		~~W~~	132,608		575,517		898,992		2,619,348		53,009		111,833

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2024 and 2023 (Unaudited)

29.	Transactions with Related Parties, Continued
(3)	Transactions with the related parties for the three and nine-month periods ended September 30, 2024 and<br>2023 are as follows, Continued:
---	---
(*1)	Operating expenses and others include lease payments by the Company.
---	---
(*2)	Operating expenses and others include ~~W~~177,961 million of dividends paid by the Company.<br>
---	---
(*3)	Operating revenue and others include ~~W~~149,526 million of dividend income received.<br>
---	---
(*4)	Operating expenses and others include ~~W~~500,475 million paid to PS&Marketing<br>Corporation relating to purchase of accounts receivable resulting from sale of handsets.
---	---
(*5)	Operating revenue and others include ~~W~~14,971 million of dividend income received.<br>
---	---
(*6)	Operating revenue and others include ~~W~~3,302 million of dividend income received.<br>
---	---
(*7)	Operating revenue and others include ~~W~~5,700 million of dividend income received.<br>
---	---
(*8)	Operating revenue and others include ~~W~~590 million of dividend received from Start-up Win-Win Fund and ~~W~~5,054 million of dividend received from Korea IT Fund.
---	---
(*9)	SK RENT A CAR Co., Ltd. was excluded from the related parties for the nine-month period ended<br>September 30, 2024, and the transactions above occurred before the related party relationship terminated.
---	---

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2024 and 2023 (Unaudited)

29.	Transactions with Related Parties, Continued
(3)	Transactions with the related parties for the three and nine-month periods ended September 30, 2024 and<br>2023 are as follows, Continued:
---	---
(In millions of won)		For the period ended September 30, 2023
---	---	---	---	---	---	---	---	---	---	---	---	---	---
		Operating revenue<br>and others				Operating expenses<br>*and others (1)**				Acquisition ofproperty andequipment and others
Scope	Company	Three-month		Nine-<br>month		Three-month		Nine-<br>month		Three-month		Nine-<br>month
Ultimate Controlling Entity	SK Inc.(*2)	~~W~~	2,890		9,352		135,331		403,543		7,717		16,952
Subsidiaries	SK Broadband Co., Ltd.(*3)		39,564		263,523		147,885		452,465		763		958
	PS&Marketing Corporation(*4)		1,455		5,594		317,822		908,173		318		628
	SK O&S Co., Ltd.		780		2,423		63,107		183,610		14,411		27,895
	SK Telink Co., Ltd.(*5)		20,729		79,040		2,309		9,264		—		—
	SERVICE ACE Co., Ltd.(*6)		2,636		12,419		30,303		94,526		—		—
	SERVICE TOP Co., Ltd.(*7)		1,987		8,950		30,720		97,567		—		—
	SK Communications Co., Ltd.		382		1,038		1,266		2,346		476		1,527
	Others		1,612		3,940		7,783		22,519		199		236
			69,145		376,927		601,195		1,770,470		16,167		31,244
Associates	F&U Credit information Co., Ltd.		187		566		10,009		34,307		352		352
	SK AMERICAS Inc.<br> <br>(Formerly, SK USA,<br>Inc.)		—		—		2,916		6,580		—		—
	Daehan Kanggun BcN Co., Ltd.		2,649		7,770		—		—		—		—
	Others(*8)		—		6,865		5,625		5,625		—		750
			2,836		15,201		18,550		46,512		352		1,102
Others	SK Innovation Co., Ltd.		3,859		12,599		3,421		9,852		—		—
	SK Networks Co., Ltd.		257		837		2,730		8,887		—		—
	SK Networks Service Co., Ltd.		127		397		10,591		30,861		377		1,217
	SK Energy Co., Ltd.		346		1,202		17		254		—		—
	Content Wavve Corp.		3,514		10,898		21,932		62,954		—		—
	Happy Narae Co., Ltd.		33		106		1,252		4,493		18,338		44,278
	SK Shieldus Co., Ltd.		13,116		39,198		23,537		78,985		1,621		3,414
	Eleven Street Co., Ltd.		1,891		5,389		9,478		21,604		—		—
	SK Planet Co., Ltd.		1,343		4,508		18,988		58,826		756		3,654
	SK hynix Inc.		10,874		33,776		35		88		—		—
	Tmap Mobility Co., Ltd.		3,136		9,445		1,983		6,785		—		—
	Dreamus Company		1,134		3,823		18,381		58,754		—		—
	One Store Co., Ltd.		3,837		11,727		—		—		—		—
	UNA Engineering Inc.<br> <br>(Formerly, UbiNS<br>Co., Ltd.)		—		—		2,163		3,213		3,057		7,002
	Others		6,384		22,241		7,498		20,049		4,882		6,347
			49,851		156,146		122,006		365,605		29,031		65,912
		~~W~~	124,722		557,626		877,082		2,586,130		53,267		115,210

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2024 and 2023 (Unaudited)

29.	Transactions with Related Parties, Continued
(3)	Transactions with the related parties for the three and nine-month periods ended September 30, 2024 and<br>2023 are as follows, Continued:
---	---
(*1)	Operating expenses and others include lease payments by the Company.
---	---
(*2)	Operating expenses and others include ~~W~~163,514 million of dividends paid by the Company.<br>
---	---
(*3)	Operating revenue and others include ~~W~~149,526 million of dividend income received.<br>
---	---
(*4)	Operating expenses and others include ~~W~~473,957 million paid to PS&Marketing<br>Corporation relating to purchase of accounts receivable resulting from sale of handsets.
---	---
(*5)	Operating revenue and others include ~~W~~3,009 million of dividend income received.<br>
---	---
(*6)	Operating revenue and others include ~~W~~4,004 million of dividend income received.<br>
---	---
(*7)	Operating revenue and others include ~~W~~3,000 million of dividend income received.<br>
---	---
(*8)	Operating revenue and others include ~~W~~2,165 million of dividends received from Korea IT<br>Fund, ~~W~~3,965 million of dividends received from Citadel Pacific Telecom Holdings, LLC and ~~W~~735 million of dividends received from UNISK(Beijing) Information Technology Co., Ltd.
---	---

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2024 and 2023 (Unaudited)

29.	Transactions with Related Parties, Continued
(4)	Account balances with the related parties as of September 30, 2024 and December 31, 2023 are as<br>follows:
---	---
(In millions of won)		September 30, 2024
---	---	---	---	---	---	---	---
		Receivables				Payables
Scope	Company	Loans		Accounts receivable– trade, etc.		Accounts payable– other, etc.
Ultimate controlling entity	SK Inc.	~~W~~	—		1,071		50,126
Subsidiaries	SK Broadband Co., Ltd.		—		81,762		192,750
	PS&Marketing Corporation		—		1,041		69,907
	SK O&S Co., Ltd.		—		14		31,382
	SK Telink Co., Ltd.		—		24,360		9,672
	SERVICE ACE Co., Ltd.		—		531		23,334
	SERVICE TOP Co., Ltd.		—		7		19,838
	SK Communications Co., Ltd.		—		2		7,701
	SK m&service Co., Ltd.		—		7,669		30,117
	Others		—		67		3,022
			—		115,453		387,723
Associates	F&U Credit information Co., Ltd.		—		6		4,398
	Daehan Kanggun BcN Co., Ltd.(*1)		22,147		6,742		—
	Others		—		—		662
			22,147		6,748		5,060
Others	SK hynix Inc.		—		10,395		145
	SK Planet Co., Ltd.		—		294		4,001
	Eleven Street Co., Ltd.		—		8,746		3,937
	One Store Co., Ltd.		—		471		4,509
	SK Shieldus Co., Ltd.		—		12,036		13,940
	SK Innovation Co., Ltd.		—		3,434		27,027
	SK Networks Co., Ltd.		—		566		28,648
	SK Networks Services Co., Ltd.		—		—		5,665
	Incross Co., Ltd.		—		1,443		4,349
	UNA Engineering Inc.<br>(Formerly, UbiNS Co., Ltd.)		—		—		536
	Mintit Co., Ltd.		—		4,977		—
	Happy Narae Co., Ltd.		—		—		2,384
	Content Wavve Corp.		—		1,618		—
	Dreamus Company		—		357		2,332
	Others		—		7,650		1,936
			—		51,987		99,409
		~~W~~	22,147		175,259		542,318
(*1)	As of September 30, 2024, the Company recognized loss allowance for the entire balance of loans to Daehan<br>Kanggun BcN Co., Ltd.
---	---

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2024 and 2023 (Unaudited)

29.	Transactions with Related Parties, Continued
(4)	Account balances with the related parties as of September 30, 2024 and December 31, 2023 are as<br>follows, Continued:
---	---
(In millions of won)		December 31, 2023
---	---	---	---	---	---	---	---
		Receivables				Payables
Scope	Company	Loans		Accounts receivable– trade, etc.		Accounts payable– other, etc.
Ultimate controlling entity	SK Inc.	~~W~~	—		1,411		85,758
Subsidiaries	SK Broadband Co., Ltd.		—		60,464		234,710
	PS&Marketing Corporation		—		1,230		57,560
	SK O&S Co., Ltd.		—		7		68,671
	SK Telink Co., Ltd.		—		22,632		18,154
	SERVICE ACE Co., Ltd.		—		460		26,828
	SERVICE TOP Co., Ltd.		—		—		24,208
	SK Communications Co., Ltd.		—		2		7,033
	Others		—		3,230		15,775
			—		88,025		452,939
Associates	F&U Credit information Co., Ltd.		—		3		4,060
	Daehan Kanggun BcN Co., Ltd.(*1)		22,147		4,702		—
	SK AMERICAS Inc.<br>(Formerly, SK USA, Inc.)		—		—		972
	Konan Technology Inc.		—		—		224
	Others		—		—		2,239
			22,147		4,705		7,495
Others	SK hynix Inc.		—		6,806		2,251
	SK Planet Co., Ltd.		—		9,313		5,579
	Eleven Street Co., Ltd.		—		1,957		2,842
	One Store Co., Ltd.		—		509		14,691
	SK Shieldus Co., Ltd.		—		10,972		10,157
	SK Innovation Co., Ltd.		—		3,308		27,806
	SK Networks Co., Ltd.		—		41		32,003
	SK Networks Services Co., Ltd.		—		—		8,314
	SK RENT A CAR Co., Ltd.		—		70		14,101
	Incross Co., Ltd.		—		1,607		659
	UNA Engineering Inc.<br>(Formerly, UbiNS Co., Ltd.)		—		—		2,558
	Mintit Co., Ltd.		—		17,025		—
	Happy Narae Co., Ltd.		—		8		5,193
	Content Wavve Co., Ltd.		—		1,476		—
	Dreamus Company		—		504		2,315
	Others		—		7,776		2,976
			—		61,372		131,445
		~~W~~	22,147		155,513		677,637
(*1)	As of December 31, 2023, the Company recognized loss allowance for the entire balance of loans to Daehan<br>Kanggun BcN Co., Ltd.
---	---

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2024 and 2023 (Unaudited)

29.	Transactions with Related Parties, Continued
(5)	The Company has granted SK REIT Co., Ltd. the right of first offer regarding the disposal of specified real<br>estates owned by the Company. Whereby, the negotiation period is within three ~ five years from June 30, 2021, when the agreement was signed, and the negotiation period of real estates on maturity was extended for three years as of June 30,<br>2024. In addition, the Company has been granted the right by SK REIT Co., Ltd. to lease the real estate in preference to a third party if SK REIT Co., Ltd. purchases the real estate from the Company.
---	---
(6)	Details of additional investments and disposal in subsidiaries, associates and joint ventures for the<br>nine-month period ended September 30, 2024 are as presented in note 8.
---	---

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2024 and 2023 (Unaudited)

30.	Commitments and Contingencies
(1)	Accounts receivable from sale of handsets
---	---

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

The accounts receivable from sale of handsets amounting to ~~W~~388,986 million and ~~W~~291,747 million as of September 30, 2024 and December 31, 2023, respectively, which the Company purchased according to the relevant comprehensive agreement, are recognized as accounts receivable – other and long-term accounts receivable – other.

(2)	Legal claims and litigations

As of September 30, 2024, the Company is involved in various legal claims and litigations. Provision recognized in relation to these claims and litigations is immaterial. In connection with those legal claims and litigations for which no provision was recognized, management does not believe the Company has a present obligation, nor is it expected that any of these claims or litigations will have a material impact on the Company’s financial position or operating results in the event an outflow of resources is ultimately necessary.

(3)	Obligation relating to spin-off

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

(4)	Commitment of the acquisition and disposal of shares

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

(5)

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

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2024 and 2023 (Unaudited)

31.	Statements of Cash Flows
(1)	Adjustments for income and expenses from operating activities for the nine-month periods ended<br>September 30, 2024 and 2023 are as follows:
---	---
(In millions of won)
---	---	---	---	---	---	---
	For the nine-month period ended
	September 30, 2024			September 30, 2023
Gain on foreign currency translations	~~W~~	(671	)		(805	)
Interest income		(27,947	)		(25,288	)
Dividends		(207,112	)		(200,406	)
Gain relating to investments in subsidiaries, associates and joint ventures, net		(11,329	)		—
Gain relating to financial instruments at FVTPL		(18,103	)		(78,777	)
Gain on disposal of property and equipment and intangible assets		(9,845	)		(15,035	)
Other income		(1,934	)		(1,422	)
Loss on foreign currency translations		742			204
Bad debt for accounts receivable – trade		21,890			20,884
Bad debt for accounts receivable – other		3,108			3,976
Loss relating to financial instruments at FVTPL		95,419			23,581
Depreciation and amortization		2,082,557			2,123,516
Loss on disposal of property and equipment and intangible assets		7,637			3,064
Loss on sale of accounts receivable – other		28,426			48,595
Interest expense		237,062			244,263
Expense related to defined benefit plan		34,708			41,116
Bonus paid by treasury shares		24,988			20,420
Share option		3,872			2,828
Income tax expense		249,524			246,385
Other income (expenses)		1,628			(5,389	)
	~~W~~	2,514,620			2,451,710

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2024 and 2023 (Unaudited)

31.	Statements of Cash Flows, Continued
(2)	Changes in assets and liabilities from operating activities for the nine-month periods ended September 30,<br>2024 and 2023 are as follows:
---	---
(In millions of won)
---	---	---	---	---	---	---
	For the nine-month period ended
	September 30, 2024			September 30, 2023
Accounts receivable – trade	~~W~~	(177,893	)		(186,749	)
Accounts receivable – other		(82,822	)		17,364
Advanced payments		1,251			26,411
Prepaid expenses		(4,763	)		31,874
Inventories		(23,483	)		(17,034	)
Long-term accounts receivable – other		(40,835	)		33,919
Guarantee deposits		2,100			(6,968	)
Contract assets		1,487			8,789
Accounts payable – other		(119,501	)		(190,889	)
Withholdings		179,344			118,242
Deposits received		184			4,680
Accrued expenses		53,659			40,315
Plan assets		1,368			(6,257	)
Retirement benefits payment		(28,930	)		(22,480	)
Contract liabilities		15,189			(23,881	)
Others		(2,145	)		(2,142	)
	~~W~~	(225,790	)		(174,806	)
(3)	Material non-cash transactions for the nine-month periods ended<br>September 30, 2024 and 2023 are as follows:
---	---
(In millions of won)
---	---	---	---	---	---	---
	For the nine-month period ended
	September 30, 2024			September 30, 2023
Decrease in accounts payable – other relating to the acquisition of property and equipment<br>and intangible assets	~~W~~	(373,825	)		(548,910	)
Increase of<br>right-of-use assets		153,800			205,869
Transfer from property and equipment to investment property		(1,479	)		4,437

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2024 and 2023 (Unaudited)

32.	Emissions Liabilities
(1)	The quantity of emissions rights allocated free of charge for each implementation year as of September 30,<br>2024 are as follows:
---	---
(In tCO2-eQ)
---	---	---	---	---	---	---	---	---	---	---	---	---
	Quantities<br>allocated<br>in 2021		Quantities<br>allocated<br>in 2022		Quantitiesallocated<br>in 2023		Quantitiesallocated<br>in 2024		Quantitiesallocated<br>in 2025		Total
Emissions rights allocated free of charge(*)		1,031,526		1,223,008		1,327,809		1,020,903		1,020,903		5,624,149
(*)	Changes in quantity due to additional allocation, cancellation of allocation and others are considered.<br>
---	---
(2)	Changes in emissions rights quantities the Company held are as follows:
---	---
(In tCO2-eQ)
---	---	---	---	---	---	---	---	---	---	---	---	---
	Quantities<br>allocated in 2022			Quantities<br>allocated in 2023			Quantities<br>allocated in the<br>nine-month period endedSeptember 30,2024			Total
Beginning		—			306,575			414,356			720,931
Allocation at no cost		1,223,008			1,327,809			1,020,903			3,571,720
Purchase		204,761			(70,789	)		—			133,972
Surrender or shall be surrendered		(1,121,194	)		(1,149,239	)		(1,236,210	)		(3,506,643	)
Ending		306,575			414,356			199,049			919,980
(3)	As of September 30, 2024, the estimated annual greenhouse gas emissions quantities of the Company are<br>1,236,210 tCO2-eQ.
---	---

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2024 and 2023 (Unaudited)

33.	Subsequent Events
(1)	The Board of Directors of the Company resolved to pay interim dividends at the Board of Directors’ meeting<br>held on October 24, 2024, and the details are as follows:
---	---
Classification	Description
---	---
Interim dividend amount	~~W~~830 per share (Total amount: ~~W~~176,696 million)
Dividend rate	1.44%
Record date	September 30, 2024
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 November 13, 2024.
(2)	The Board of Directors of the Company resolved the acquisition of certain shares of SK Broadband Co., Ltd.<br>(24.76%) for ~~W~~1,145,870 million based on existing agreement with the other shareholders at the Board of Directors’ meeting held on November 13, 2024, and entered into a share acquisition contract as of<br>November 13, 2024.
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