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 2023

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, 2023 to September 30, 2023)

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, 2023.

II.	BUSINESS

1. Business Overview

Each company in the consolidated entity is a separate legal entity providing independent services and products. The Company’s business is primarily separated into (1) the wireless business consisting of cellular voice, wireless data and wireless Internet services, (2) the fixed-line business consisting of fixed-line telephone, high-speed Internet, data and network lease services, among others and (3) other businesses consisting of commercial retail data broadcasting channel business, among others.

Set forth below is a summary description of the business of each of the Company’s material consolidated subsidiaries.

Classification	Company name	Description of business
Wireless	SK Telecom Co., Ltd.	Wireless voice and data telecommunications services via digital wireless networks
	PS&Marketing Co., Ltd.	Sale of fixed-line and wireless telecommunications products through wholesale, retail and online distribution channels
	SK O&S Co., Ltd.	Maintenance of switching stations
	Service Ace Co., Ltd.	Management and operation of customer centers
	Service Top Co., Ltd.	Management and operation of customer centers
Fixed-line	SK Broadband Co., Ltd.	High-speed Internet, TV, telephone, commercial data and other fixed-line services and management of the transmission system for online<br>digital contents<br> <br>Various media-related services, such as channel management services including video-on-demand services
	Home & Service Co., Ltd.	System maintenance of high-speed Internet, IPTV and fixed-line services
	SK Telink Co., Ltd.	International wireless direct-dial “00700” services and MVNO business
Other business	SK stoa Co., Ltd.	Operation of commercial retail data broadcasting channel services
	Atlas Investment	Investments
	SK Telecom Innovation Fund, L.P.	Investments
	SK m&service Co., Ltd.	Database and online information services
	SAPEON Inc.	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 3G, 4G and 5G markets on the basis of its technological leadership and network management technology. With the world’s first commercialization of 5G technology in 2019, the Company continues to maintain its position as the top network operator in the 5G era and strives to provide differentiated services to its customers.

In order to strengthen its sales channels, the Company has been offering a variety of fixed-line and wireless telecommunications convergence products through its subsidiary, PS&Marketing Co., Ltd. (“PS&Marketing”). PS&Marketing provides differentiated service to customers through the establishment of new sales channels and product development. Through its subsidiaries Service Ace Co., Ltd. (“Service Ace”) and Service Top Co., Ltd., the Company operates customer service centers and provides telemarketing services. Additionally, SK O&S Co., Ltd. (“SK O&S”), the Company’s subsidiary responsible for the operation of the Company’s networks, provides customers with quality network services and provides the Company with technological know-how in network operations.

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

The Company has been providing its customers with various subscription packages through “T Universe,” the Company’s subscription business, in partnership with domestic and international businesses. In addition, the Company is continually updating key functions and technologies of “A. (Adot),” the world’s first commercialized Korean language GPT-3-based service which the Company officially launched in September 2023. The Company has also been further strengthening the social and community functions of “ifland” with a goal to transform it into a globally leading metaverse service.

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			2022		2021
Number of subscribers	SK Telecom	31,168		30,452		29,696
	Others (KT, LG U+)	35,150		32,676		31,869
	MVNO	15,184		12,829		10,355
	Total	81,502		75,957		71,920
*	Source: Wireless telecommunications service data from the MSIT as of September 30, 2023.<br>
---	---
D.	Domestic and Overseas Market Conditions
---	---

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

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

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

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

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

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

(Unit: in percentages)

Classification	As of September 30,2023
			2022		2021
Mobile communication services		47.0		48.2		48.2
*	Source: Wireless telecommunications service data from the MSIT as of September 30, 2023.<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 (the “Spin-off”) in order to maximize shareholder value. In the same year, the Company also unveiled its “SKT 2.0” vision to pursue the maximization of its overall corporate 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, 2023, the Company recorded Won 4.40 trillion in operating revenue and Won 0.50 trillion in operating profit on a consolidated basis. The increased competitiveness of telecommunications services and the rapid progress in new growth businesses such as B2B have enabled the Company to continue to improve its operating results.

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

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

PS&Marketing, a subsidiary of the Company, provides a sales platform for products of the Company and SK Broadband Co., Ltd. (“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, 2023, SK Broadband recorded Won 3.20 trillion in revenue on a consolidated basis, which represented a 3.1% increase from Won 3.10 trillion for the nine months ended September 30, 2022. Such increase was primarily attributable to the growth of SK Broadband’s media business resulting from an increase in the number of subscribers and the growth of its B2B business resulting from, among other things, the operation of 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 30, 2023, the media business segment recorded Won 1.43 trillion in revenue, which represented a 0.8% increase compared to the nine months ended September 30, 2022. For the nine months ended September 30, 2023, the fixed-line business segment recorded Won 1.77 trillion in revenue, which represented an 5.1% increase compared to the nine months ended September 30, 2022.

B.	Industry Characteristics

The domestic telecommunications service industry displays the typical characteristics of a domestic industry given that its coverage area is limited to Korea. As a result, the size of the industry is greatly affected by the domestic economic factors including the domestic user population and the level of telecommunications service expenditures in light of the domestic income level. Domestic telecommunications companies may expand overseas through 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 transmission to viewers through telecommunications facilities. The broadcasting market can be categorized into terrestrial broadcasting, fixed-line TV broadcasting, satellite broadcasting and programming-providing businesses, in each case pursuant to the Broadcasting Act, as well as Internet multimedia broadcasting business pursuant to the Internet Multimedia Broadcast Services Act. SK Broadband engages in the fixed-line TV broadcasting business, which is defined as the business of managing and operating fixed-line TV broadcasting stations (including their facilities and employees for the purpose of providing multi-channel broadcasting) and providing broadcasts through transmission and line facilities. The Internet multimedia broadcasting refers to the broadcasting of programs through a combination of various contents including data, video, voice, sound and/or e-commerce, including real-time broadcasting, while guaranteeing a consistent service quality through a bidirectional Internet protocol using a broadband integrated information network.

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

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

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

In the paid broadcasting market, competition for content has been intensifying, at the center of which are large over-the-top operators with strength in 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 powered by new technologies including AI and metaverse. The Company is continuing its efforts to generate stable returns by strengthening its competitiveness in the traditional fixed line-based business through expansion of core infrastructure including data centers and leased lines, for which market demand has been continually growing.

C.	Growth Potential

(Unit: in persons)

Classification
	2022		2021
Fixed-line Subscribers	High-speed Internet	23,977,654	23,537,333	22,944,268
	Fixed-line telephone	11,133,208	11,621,413	12,211,954
	IPTV	20,539,547	20,203,451	19,346,812
	Cable TV	12,737,798	12,824,704	12,986,039
*	Source: MSIT website.
---	---
**	High-speed Internet and fixed-line telephone subscribers represent the number of subscribers as of<br>September 30, 2023, while IPTV and cable TV subscribers represent the average number of subscribers in the second half of 2022.
---	---
D.	Cyclical Nature and Seasonality
---	---

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

E.	Domestic and Overseas Market Conditions

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

(Unit: in percentages)

Classification	As of September 30,2023
			2022		2021
High-speed Internet (including resales)		28.7		28.5		28.7
Fixed-line telephone (including Voice over Internet Protocol (“VoIP”)		17.9		17.8		17.5
IPTV		31.2		30.9		30.6
Cable TV		22.2		22.2		22.2
*	Source: MSIT website.
---	---
**	With respect to Internet telephone, the market share was calculated based on market shares among the<br>Company, KT and LG U+ and is based on the number of IP phone subscribers.
---	---
*******	Since April 2021, VoIP subscribers of SK Telink have been included in the total clients of the Company.<br>
---	---
********	Market shares of High-speed Internet and Fixed-line telephone represent the market shares as of<br>September 30, 2023 and market shares of IPTV and Cable TV represent the average market shares in the second half of 2022.
---	---

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

[Other Businesses]

A.	Other businesses

The commercial retail data broadcasting channel business 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.

In order to secure core competencies at an early stage and achieve differentiation, the Company has been actively searching for high-efficiency television channels while increasing the competitiveness of its content production capacity by building the Company’s own media center and adopting a media wall with the objective of transforming it into an eco-friendly digital studio.

In addition to enhancing the convenience of shopping experience by offering various media content on its mobile live platform, the Company was the first in the industry to launch a cloud-based television application service, “Stoa ON,” which provides personalized digital television shopping services. Furthermore, the Company has been establishing itself as a leading shopping channel service provider by securing a diverse product portfolio and engaging in product development in areas ranging from fashion to health food.

2. Key Financial Data by Business Line

A.	Assets
				(Unit: in millions of Won and percentages)
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
Classification	As of September 30,<br>2023						As of December 31,
			2022							2021
	Amount			Ratio			Amount				Ratio			Amount			Ratio
Wireless		25,482,577			77	%		27,078,021				79	%		27,126,972			80	%
Fixed-line		6,659,301			20	%		6,588,076				19	%		6,319,019			19	%
Other		967,794			3	%		762,028				2	%		462,021			1	%
Subtotal		33,109,673			100	%		34,428,124				100	%		33,908,011			100	%
Consolidation Adjustment		(3,230,406	)		—			(3,119,862	)			—			(2,996,734	)		—
Total		29,879,267			—			31,308,262				—			30,911,277			—
B.	Revenue
---	---
				(Unit: in millions of Won and percentages)
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
Classification	For the nine months endedSeptember 30,<br>2023						For the year ended December 31,
			2022						2021
	Amount			Ratio			Amount			Ratio			Amount		Ratio
Wireless		9,733,333			75	%		12,942,316			75	%		12,718,473		76	%
Fixed-line		2,930,678			22	%		3,812,989			22	%		3,677,706		22	%
Other		417,209			3	%		549,668			3	%		352,406		2	%
Total		13,081,220			100	%		17,304,973			100	%		16,748,585		100	%

C.	Operating Profit
				(Unit: in millions of Won and percentages)
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
Classification	For the nine months endedSeptember 30,2023						For the year ended December 31,
			2022							2021
	Amount			Ratio			Amount				Ratio			Amount			Ratio
Wireless		1,216,576			84	%		1,334,306				81	%		1,123,147			78	%
Fixed-line		257,570			18	%		311,083				19	%		294,070			21	%
Other		(19,961	)		(2	)%		(2,102	)			0	%		14,550			1	%
Subtotal		1,454,185			100	%		1,643,287				100	%		1,431,767			100	%
Consolidation Adjustment		1,964			—			(31,216	)			—			(44,605	)		—
Total		1,456,149			—			1,612,070				—			1,387,162			—

3. Updates on Major Products and Services

				(Unit: in millions of Won and percentages)
Business	Major Companies	Items	Major Trademarks	For the nine monthsended September 30,2023						For the year ended December 31,
						2022						2021
				ConsolidatedSalesAmount			Ratio			ConsolidatedSalesAmount			Ratio			ConsolidatedSalesAmount		Ratio
Wireless	SK Telecom Co., Ltd.,<br>PS&Marketing Co., Ltd.,<br><br><br>Service Ace Co., Ltd.<br>SK O&S Co., Ltd.	Mobile communication service,<br>wireless data service,<br>ICT service	T, 5GX, T Plan and others		9,733,333			75	%		12,942,316			75	%		12,718,473		76	%
Fixed-line	SK Broadband Co., Ltd.,<br>SK Telink Co., Ltd.<br><br><br>Home & Service Co., Ltd.	Fixed-line phone,<br>high-speed Internet,<br>data and network lease service	B tv, 00700 international call, 7mobile and others		2,930,678			22	%		3,812,989			22	%		3,677,706		22	%
Other	SK stoa Co., Ltd.	Commercial retail data broadcasting channel services and others	Stoa ON		417,209			3	%		549,668			3	%		352,406		2	%
Total					13,081,220			100	%		17,304,973			100	%		16,748,585		100	%

4. Price Trends for Major Products

[Wireless Business]

As of September 30, 2023, based on the Company’s standard monthly subscription plan, the basic service fee was Won 12,100 (including value-added tax) **** and the usage fee was Won 1.98 per second. Among the 4G-based plans, the “T-Plan Safe 4G” provides 4 GB of data and unlimited voice calls at Won 50,000 per month (including value-added tax). Among the 5G-based plans, the “Basic” plan provides 8 GB of data and unlimited voice calls at Won 49,000 per month (including value-added tax). On June 1, 2023, the Company newly launched the “5G 0 Youth” plan, which actively reflects the data usage patterns and lifestyle trends of the younger demographics. 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]

On May 15, 2023, SK Broadband newly launched the Internet Protocol Cable TV (“IP CATV”) product. Existing cable TV services were allowed to transmit broadcasting contents only through the radio frequency (“RF”) method. However, pursuant to recent amendments to the Broadcasting Act which recognize technology neutrality, cable TV services are now allowed to transmit broadcasting contents through non-RF methods, thereby allowing the Company to introduce the new IP CATV product.

Compared to the RF method, the Internet protocol method provides diverse and high-quality services on a more stable basis. The Company expects these factors will lead to greater customer satisfaction and competitiveness of its cable TV services products through improvement in broadcasting quality.

In order to cater to the diverse needs of the customers, the IP CATV product is offered through three plans. The “B tv pop 100” plan offers basic channels (109 channels), the “B tv pop 180” plan offers channels with high viewer ratings (184 channels) and the “B tv pop 230” plan offers all cable TV channels (231 channels). Based on a three-year contract, the plans cost Won 7,700, Won 11,000, and Won 13,200, respectively. As for the B tv pop 180 and B tv pop 230 plans, customers can receive an additional discount of Won 3,300 if they combine the plans with the broadband Internet service.

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

5. Investment Status

[Wireless Business]

A.	Investment in Progress
(Unit: in billions of Won)
---	---	---	---	---	---	---	---	---	---
Business	Classification	Investmentperiod	Subject ofinvestment	Investment effect	Expectedinvestment amount	Amountalreadyinvested		Futureinvestment
Network/Common	Upgrade/<br>New installation	Year ended December 31, 2023	Network, systems and others	Upgrades to the existing services and expanded provision of network services including 5G	To be determined		896		—
Total					To be determined		896		—
B.	Future Investment Plan
---	---
Business	Expected investment amount		Expected investment for each year			Investment effect
---	---	---	---	---	---	---
	Asset type	Amount	2024	2025	2026
Network/Common	Network, systems and others	To be determined	To be determined	To be determined	To be determined	Upgrades to the existing services<br>and expanded provision of<br>network services including 5G
Total		To be determined	To be determined	To be determined	To be determined

[Fixed-line Business]

A.	Investment in Progress and Future Investment Plan

(Unit: in billions of Won)

Purpose ofinvestment	Subject ofinvestment	Investmentperiod	Amountalreadyinvested		Futureinvestment	Investment effect
Coverage expansion, upgrade of media platform	Network, systems, Internet data center and others	Nine months ended September 30, 2023		590	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	129,099	140,642	143,149
				Domestic	9,604,234	12,801,674	12,575,324
				Subtotal	9,733,333	12,942,316	12,718,473
Fixed-line	Services	Fixed-line, high-speed Internet, data, lease line service		Export	134,942	183,812	139,846
				Domestic	2,795,736	3,629,177	3,537,860
				Subtotal	2,930,678	3,812,989	3,677,706
Other	Services	Commercial retail data broadcasting channel services		Export	—	—	—
				Domestic	417,209	549,668	352,406
				Subtotal	417,209	549,668	352,406
Total				Export	264,041	324,454	251,502
	Domestic		12,817,179		16,980,519	16,497,083
	Total		13,081,220		17,304,973	16,748,585

(Unit: in millions of Won)

For the nine months endedSeptember 30,2023
Total sales	10,855,374	3,813,463	451,014		15,119,851	(2,038,631	)	13,081,220
Internal sales	1,122,041	882,785	33,805		2,038,631	(2,038,631	)	—
External sales	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 profit (loss)							****	(193,446	)
Gain from investments in associates and joint ventures							****	6,437
Other non-operating profit(loss)							****	1,644
Profit before income tax							****	1,270,784

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, 2023 are as follows: ****

[SK Telecom]

Borrowingdate	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
Dec. 19, 2018	Floating rate Korean Won denominated borrowings	Interest rate risk	Interest rate swap	Credit Agricole CIB	Mar. 19, 2019 –<br>Dec. 14, 2023
Mar. 4, 2020	Floating rate foreign currency denominated bonds	Foreign currency and interest rate risks	Cross currency interest rate swap	Citibank	Mar. 4, 2020 –<br>June 4, 2025
June 28, 2023	Fixed rate foreign currency denominated bonds	Foreign currency risk	Cross currency swap	Citibank, Shinhan Bank, KDB, J.P. Morgan	June 28, 2023 –<br>June 28, 2028

[SK Broadband]

Borrowingdate	Hedged item	Hedged risk	Contract type	Financial institution	Duration ofcontract
Dec. 19, 2018	Floating rate Korean Won denominated borrowings	Interest rate risk	Interest rate swap	Credit Agricole CIB	Mar. 19, 2019 –<br>Dec. 14, 2023
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		18		23		48		—
Labor		95,400		113,297		122,445		—
Depreciation		103,163		135,604		147,249		—
Commissioned service		31,551		46,447		55,917		—
Others		37,527		78,989		48,048		—
Total R&D costs		267,659		374,360		373,707		—
Government Subsidies		—		—		—		—
Accounting	Sales and administrative expenses	251,970		340,864		347,711		—
	Development expenses (intangible assets)	15,689		33,495		25,996		—
R&D cost / sales amount ratio (Total R&D costs / Current sales<br>amount×100)		2.05	%	2.16	%	2.23	%	—

10. Market Conditions and Business Overview of New Business Sectors

[Data production, transaction and utilization businesses, such as the MyData business]

1) Business Area and Purpose of Entry

In July 2022, the Company became the first telecommunications service provider in Korea to acquire a “MyData” financial business license. The Company initiated its MyData service in September 2022 by launching it as an open beta service on its personal authentication service (“PASS”) application. Currently, the Company’s MyData service provides financial health diagnosis and coaching services in addition to providing an aggregated review of a customer’s assets.

Through its MyData business, the Company plans to provide differentiated value to its customers by collecting and analyzing vast amounts of personal credit information dispersed in banks, securities, card and insurance companies.

2) Industry Characteristics

The MyData industry first started in the financial sector in 2022. Following the introduction of the right to data portability, approximately 100 companies in the finance, big tech, fintech, distribution and communication sectors have been participating or are planning to participate in the MyData businesses, each pursuing different strategies based on its business purposes. Currently, competition in the MyData industry is accelerating as participants attempt to pre-emptively occupy digital platforms. The key value of the MyData business is its ability to integrate financial information scattered across various corporate services into a single platform. Companies can leverage this ability to provide customized services, ultimately resulting in increased customer loyalty and userbase.

3) Industry Size and Growth Potential

The MyData industry has seen rapid growth in Korea. Since the introduction of MyData financial service under the government’s initiative in January 2022, 66.5 million users (as of December 2022 and including overlapping users) had subscribed to MyData services within 11 months. Approximately 400 million information transmissions occur on a daily basis and this number is expected to continue to increase. As of October 31, 2023, there were 68 companies participating in the MyData industry, which had more than doubled compared to the beginning of 2022. The MyData industry is expected to expand beyond the financial sector and reach broader sectors of the society including, among others, public welfare, medical and distribution sectors.

4) Investment Status

Subject ofInvestment	InvestmentPeriod	Expectedinvestmentamount	Amountalreadyinvested	Source ofInvestment	Expectedinvestment returnperiod	Expected InvestmentEffect
System establishment	Year ended<br>December 31,<br>2021	Won 1.55 billion	Won 1.55 billion	Internal	To be determined	Establish collection system and service system
System establishment	Year ended<br>December 31,<br>2022	Won 1.02 billion	Won 1.02 billion	Internal	To be determined	Establish analysis system and service system
Software improvement	Year ended<br>December 31,<br>2023	To be determined	Won 1.14 billion	Internal	To be determined	Develop API 2.0
Software improvement	Year ended<br>December 31,<br>2024	To be determined	—	Internal	To be determined	Expand into private welfare and medical MyData sectors
Software improvement	Year ended<br>December 31,<br>2025	To be determined	—	Internal	To be determined	Expand into distribution MyData sector
*	Amount already invested has been calculated based on capital expenditures.
---	---

[Medical Device and Veterinary Medical Device Business]

1) Business Area and Purpose of Entry

In September 2022, the Company launched “X Caliber,” an AI-based veterinary image diagnosis assistance service which assists the diagnosis of veterinarians by using AI to analyze X-ray images of pets.

X Caliber is one of many services in which the Company has applied its AI and data technology capabilities. Through X Caliber, the Company expects to improve the X-ray imaging environment of veterinary hospitals and the accuracy of image diagnosis, thereby increasing environmental, social and governance (“ESG”) value in terms of animal welfare.

2) Industry Characteristics

Unlike general industrial products, the medical device industry is a multi-product, small-scale production industry. It is also a regulated industry, closely related to the government’s medical policies and oversight. As technology advances, medical devices are becoming increasingly complex and diversified. The market for high value-added products with advanced technology is led by a small number of large companies, while the market for low-priced products and certain other markets are led by specialized small- and medium-sized companies.

3) Industry Size and Growth Potential

In 2022, the size of the medical device market in Korea amounted to Won 11.878 trillion*, showing an annual growth rate of 13.9%. The medical device market is a promising industry of high added value, and continued growth is expected as product development applying new technologies such as ICT and AI continues to increase.

*	Source: Ministry of Food and Drug Safety, Medical Device Production, Export and Import Performance Report, by<br>year

4) Investment Status

Subject ofInvestment	InvestmentPeriod	Expectedinvestmentamount	Amountalreadyinvested	Source ofInvestment	Expectedinvestment returnperiod	Expected InvestmentEffect
Data acquisition and software improvement	Year ended<br>December 31,<br>2023	To be determined	Won 912 million	Internal	To be determined	Enhance current services and expand diagnosis & automated measurement functions
Software improvement	Year ended<br>December 31,<br>2024	To be determined	—	Internal	To be determined	Enhance current services and expand areas of diagnosis
Software improvement	Year ended<br>December 31,<br>2025	To be determined	—	Internal	To be determined	Enhance current services and expand areas of diagnosis

11. 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, 2023, the Company held 3,271 Korean-registered patents and 1,681 foreign-registered patents. The Company holds 724 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, 2023, SK Broadband held 281 Korean-registered patents and 69 foreign-registered patents (including those held jointly with other companies). It also holds 313 Korean-registered trademarks and owns intellectual property rights to its proprietary graphic design of the alphabet “B” representing its brand. The designed alphabet “B” is registered in all business categories for trademarks (total of 45). The number of registered patents and trademarks is subject to continual change due to the acquisition of new rights, expiration of terms, abandonments and dispositions.

C.	Business-related Pollutants and Environmental Protection

[SK Telecom]

The Company does not directly engage in any manufacturing and therefore does not undertake any industrial processes that emit pollutants into the air or industrial processes in which hazardous materials are used. Nevertheless, the Company clearly recognizes the severity of the climate crisis and has been diligently fulfilling its social obligations by establishing a systematic and practical environmental management strategy system. Under the vision of “realizing a sustainable future based on ICT” and to achieve Net Zero by 2050, the Company is making efforts to (1) preemptively respond to climate change, (2) improve its environmental management system and (3) create an eco-friendly green culture. To this end, the Company was one of the first 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 ICT technology, and recently became the first company in the telecommunications industry to obtain carbon emission rights by reducing greenhouse gas through integration of telecommunications equipment and technology upgrades.

[SK Broadband]

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

In 2021, SK Broadband declared its goal to achieve Net Zero by 2045 in an effort to actively participate in the international community’s response to climate change. Prior to the declaration, SK Broadband had already subscribed to 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 implement RE100 and is considering the installation of additional solar power generation facilities to self-produce and use renewable energy.

III.	FINANCIAL INFORMATION

1. Summary Financial Information (Consolidated and Separate)

A.	Summary Financial Information (Consolidated)

Below is the summary consolidated financial information of the Company as of September 30, 2023, December 31, 2022 and December 31, 2021, and for the nine months ended September 30, 2023 and for the years ended December 31, 2022 and 2021. The Company’s consolidated financial statements as of September 30, 2023 and December 31, 2022, and for the nine months ended September 30, 2023 and 2022, 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, 2023			As of<br>December 31, 2022			As of<br>December 31, 2021
Assets
Current Assets		6,614,589			7,219,196			6,352,665
• Cash and Cash Equivalents		1,164,272			1,882,291			872,731
• Accounts Receivable – Trade, net		2,129,085			1,970,611			1,913,511
• Accounts Receivable – Other, net		399,529			479,781			548,362
• Others		2,921,703			2,886,513			3,018,061
Non-Current Assets		23,264,678			24,089,066			24,558,612
• Long-Term Investment Securities		1,630,093			1,410,736			1,715,078
• Investments in Associates and Joint Ventures		1,975,227			1,889,289			2,197,351
• Property and Equipment, net		12,655,691			13,322,492			12,871,259
• Goodwill		2,075,009			2,075,009			2,072,493
• Intangible Assets, net		2,859,709			3,324,910			3,869,769
• Others		2,068,949			2,066,630			1,832,662
Total Assets		29,879,267			31,308,262			30,911,277
Liabilities
Current Liabilities		6,526,181			8,046,541			6,960,435
Non-Current Liabilities		10,981,536			11,106,525			11,615,704
Total Liabilities		17,507,717			19,153,066			18,576,139
Equity
Equity Attributable to Owners of the Parent Company		11,549,622			11,318,320			11,579,346
Share Capital		30,493			30,493			30,493
Capital Surplus (Deficit) and Other Capital Adjustments		(11,648,587	)		(11,567,117	)		(11,623,726	)
Retained Earnings		22,828,633			22,463,711			22,437,341
Reserves		339,083			391,233			735,238
Non-controlling Interests		821,928			836,876			755,792
Total Equity		12,371,550			12,155,196			12,335,138
Total Liabilities and Equity		29,879,267			31,308,262			30,911,277
(Unit: in millions of Won except per share data and number of consolidated subsidiaries)
	For the nine monthsended September 30,2023			For the year endedDecember 31, 2022			For the year endedDecember 31, 2021
Operating Revenue		13,081,220			17,304,973			16,748,585
Operating Profit		1,456,149			1,612,070			1,387,162
Profit Before Income Tax		1,270,784			1,236,152			1,718,191
Profit from Continued Operations		958,495			947,831			1,271,395
Profit from Discontinued Operations		—			—			1,147,594
Profit for the Period		958,495			947,831			2,418,989
Profit for the Period Attributable to Owners of the Parent Company		917,612			912,400			2,407,523
Profit for the Period Attributable to Non-controlling<br>Interests		40,883			35,431			11,466
Basic Earnings Per Share (Won)		4,150			4,118			7,191
Diluted Earnings Per Share (Won)		4,149			4,116			7,187
Total Number of Consolidated Subsidiaries		27			25			23

B.	Summary Financial Information (Separate)

Below is the summary separate financial information of the Company as of September 30, 2023, December 31, 2022 and December 31, 2021, and for the nine months ended September 30, 2023 and for the years ended December 31, 2022 and 2021. The Company’s separate financial statements as of September 30, 2023 and December 31, 2022, and for the nine months ended September 30, 2023 and 2022, which are prepared in accordance with K-IFRS, are attached hereto.

(Unit: in millions of Won)


Assets
Current Assets	4,737,648		5,498,460		4,681,493
• Cash and Cash Equivalents	350,106		1,217,504		158,823
• Accounts Receivable – Trade, net	1,592,050		1,425,695		1,514,260
• Accounts Receivable – Other, net	370,557		435,096		520,956
• Others	2,424,935		2,420,165		2,487,454
Non-Current Assets	20,121,846		20,933,661		21,707,572
• Long-Term Investment Securities	1,334,312		1,155,188		1,476,361
• Investments in Subsidiaries and Associates	4,700,949		4,621,807		4,841,139
• Property and Equipment, net	8,864,988		9,519,663		9,318,408
• Goodwill	1,306,236		1,306,236		1,306,236
• Intangible Assets, net	2,284,747		2,693,400		3,203,330
• Others	1,630,614		1,637,367		1,562,098
Total Assets	24,859,494		26,432,121		26,389,065
Liabilities
Current Liabilities	5,018,362		6,236,135		5,426,477
Non-Current Liabilities	9,268,663		9,812,604		10,099,732
Total Liabilities	14,287,025		16,048,739		15,526,209
Equity
Share Capital	30,493		30,493		30,493
Capital Surplus and Other Capital Adjustments	(4,586,946	)	(4,506,693	)	(4,576,271	)
Retained Earnings	15,092,059		14,691,461		14,770,618
Reserves	36,863		168,121		638,016
Total Equity	10,572,469		10,383,382		10,862,856
Total Liabilities and Equity	24,859,494		26,432,121		26,389,065

(Unit: in millions of Won)


Operating Revenue	9,384,930	12,414,588	12,102,830
Operating Profit	1,201,882	1,321,131	1,114,323
Profit Before Income Tax	1,191,753	1,146,250	1,369,347
Profit for the Period	945,368	869,490	1,073,823
Basic Earnings Per Share (Won)	4,277	3,921	3,183
Diluted Earnings Per Share (Won)	4,276	3,919	3,181

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, 2022.

3. Use of Direct Financing

A.	Use of Proceeds from Public Offerings

[SK Telecom]

(As of September 30,<br>2023)						(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	80th	January 15, 2021	Repayment of debt		310,000	Repayment of debt		310,000		—
Corporate bond	81st	October 28, 2021	Repayment of debt		200,000	Repayment of debt		200,000		—
Corporate bond	82nd	April 12, 2022	Repayment of debt		350,000	Repayment of debt		350,000		—
Corporate bond	83rd	August 10, 2022	Repayment of debt		395,000	Repayment of debt		395,000		—
Corporate bond	84th	December 14, 2022	Repayment of debt		310,000	Repayment of debt		310,000		—
Corporate bond	85th	February 17, 2023	Repayment of debt		300,000	Repayment of debt		300,000		—
Corporate bond	86th	April 12, 2023	Repayment of debt		350,000	Repayment of debt		350,000		—
Hybrid securities	3rd	June 5, 2023	Repayment of debt		400,000	Repayment of debt		400,000		—

[SK Broadband]

(As of September 30,<br>2023)						(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 51	July 13, 2021	Repayment of debt		100,000	Repayment of debt		100,000		—
Corporate bond	Series 52-1	January 25, 2022	Repayment of debt		100,000	Repayment of debt		100,000		—
Corporate bond (green bond)	Series 52-2	January 25, 2022	Repayment of debt		50,000	Repayment of debt		50,000		—
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		—
*	Series 52-2 issued as of January 25, 2022 is an ESG bond (green<br>bond). Series 52-2 was issued for the purpose of repayment of funds raised to be invested in the conversion of hybrid fiber-coaxial network to fiber-to-the-home network, which has a positive impact on the environment, and the proceeds from the bond offering were used for the intended purpose. See the ESG bond report published in the socially<br>responsible investment bond segment of the Korea Exchange for more information on the use of proceeds from this ESG bond offering.
---	---
B.	Use of Proceeds from Private Offerings
---	---

[SK Telecom]

None.

[SK Broadband]

None.

C.	Operation of Unused Proceeds

[SK Telecom]

None.

[SK Broadband]

None.

4. Other Matters Related to Financial Information

A.	Restatement of the Financial Statements

Pursuant to the resolutions of the Board of Directors and the General Meeting of Shareholders on June 10, 2021 and October 12, 2021, respectively, the Company conducted the Spin-off effective as of November 1, 2021. As a result of the Spin-off, the Company discontinued certain parts of the security, commerce and other businesses operated by its major subsidiaries, which were transferred to the newly established company. Accordingly, certain of the Company’s material subsidiaries, including One Store Co., Ltd., SK Planet Co., Ltd., Eleven Street Co., Ltd., Dreamus Company, SK shieldus Co., Ltd., Incross, T Map Mobility and SK m&service Co., Ltd. (“SK M&Service”), were excluded from the scope of the Company’s consolidation. The Company classified and separately showed profit (loss) from such discontinued businesses in its consolidated statement of profit and loss for the year ended December 31, 2021 in the Company’s audit report and annual business report as of and for the year ended December 31, 2021 pursuant to the application of K-IFRS 1105. The consolidated statement of profit and loss for the year ended December 31, 2020 was restated accordingly for comparative purposes. Furthermore, the Spin-off caused a change in the Company’s business segments, which led to a restatement of prior years’ segment information, and the business of SK Stoa, which had previously been classified as part of the Company’s commerce segment, was reclassified as part of the Company’s other business segment.

B.	Loss Allowance
(1)	Loss Allowance of Trade and Other Receivables
---	---
	(Unit: in millions of Won, except percentages)
---	---	---	---	---	---	---	---
	For the nine months ended September 30, 2023
	Gross amount		Loss Allowance		Percentage
Accounts receivable – trade		2,390,947		248,667		10.4	%
Loans		158,575		45,864		28.9	%
Accounts receivable – other		781,196		41,432		5.3	%
Accrued income		4,167		—		—
Guarantee deposits		289,566		300		0.1	%
Total		3,624,451		336,263		9.3	%
	(Unit: in millions of Won, except percentages)
	For the year ended December 31, 2022
	Gross amount		Loss Allowance		Percentage
Accounts receivable – trade		2,219,695		234,923		10.6	%
Loans		151,155		45,592		30.2	%
Accounts receivable – other		897,920		44,188		4.9	%
Accrued income		1,732		—		—
Guarantee deposits		280,945		300		0.1	%
Total		3,551,447		325,003		9.2	%
	(Unit: in millions of Won, except percentages)
	For the year ended December 31, 2021
	Gross amount		Loss Allowance		Percentage
Accounts receivable – trade		2,160,498		238,881		11.1	%
Loans		138,181		45,385		32.8	%
Accounts receivable – other		870,225		46,625		5.4	%
Accrued income		762		—		—
Guarantee deposits		278,759		—		—
Total		3,448,425		330,891		9.6	%

(2)	Movements in Loss Allowance of Trade and Other Receivables
	(Unit: in millions of Won)
---	---	---	---	---	---	---	---	---	---
	For the nine monthsended September 30,2023			For the year endedDecember 31, 2022			For the year endedDecember 31, 2021
Beginning balance		325,002			330,891			365,063
Effect of change in accounting policy		—			—			—
Increase of loss allowance		32,753			30,064			37,547
Reversal of loss allowance		—			—			—
Write-offs		(21,492	)		(35,955	)		(57,215	)
Other		—			3			(14,504	)
Ending balance		336,263			325,003			330,891
(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, 2023
	Six months orless			From sixmonths to oneyear			From one yearto three years			More thanthree years			Total
Accounts receivable – general		2,139,666			63,690			140,630			46,962			2,390,947
Percentage		89.5	%		2.7	%		5.9	%		1.9	%		100.0	%
C.	Inventories
---	---
(1)	Detailed Categories of Inventories
---	---
	(Unit: in millions of Won, except percentages)
---	---	---	---	---	---	---	---	---	---
Account Category	For the nine monthsended September 30,2023			For the year endedDecember 31, 2022			For the year endedDecember 31, 2021
Merchandise		159,035			151,303			201,126
Goods in transit		—			—			—
Other inventories		28,286			15,052			3,511
Total		187,321			166,355			204,637
Percentage of inventories to total assets<br><br><br>[Inventories / Total assets]		0.62	%		0.53	%		0.66	%
Inventory turnover<br><br><br>[Cost of sales / { ( Beginning balance of inventories + Ending balance of inventories ) / 2}]		6.74			6.84			6.20

(2)	Reporting of Inventories

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

D.	Fair Value Measurement

See Notes 2 and 30 of the notes to the Company’s 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	Principal Amount(millions of Won)		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	Not applicable
	Compliance Status	Not applicable
Submission of Compliance Certificate	Compliance Status	Submitted on August 17, 2023
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 64-2	May 14, 2014	May 14, 2024		150,000	Apr. 29, 2014	Korea Securities Finance Corp.
Unsecured Bond – Series 65-3	Oct. 28, 2014	Oct. 28, 2024		190,000	Oct. 16, 2014	Korea Securities Finance Corp.
Unsecured Bond – Series 66-2	Feb. 26, 2015	Feb. 26, 2025		150,000	Feb. 11, 2015	Korea Securities Finance Corp.
Unsecured Bond – Series 66-3	Feb. 26, 2015	Feb. 26, 2030		50,000	Feb. 11, 2015	Korea Securities Finance Corp.
Unsecured Bond – Series 67-2	July 17, 2015	July 17, 2025		70,000	July 9, 2015	Korea Securities Finance Corp.
Unsecured Bond – Series 67-3	July 17, 2015	July 17, 2030		90,000	July 9, 2015	Korea Securities Finance Corp.
Unsecured Bond – Series 68-2	Nov. 30, 2015	Nov. 30, 2025		100,000	Nov. 18, 2015	Korea Securities Finance Corp.
Unsecured Bond – Series 68-3	Nov. 30, 2015	Nov. 30, 2035		70,000	Nov. 18, 2015	Korea Securities Finance Corp.
Unsecured Bond – Series 69-3	Mar. 4, 2016	Mar. 4, 2026		90,000	Feb. 22, 2016	Korea Securities Finance Corp.
Unsecured Bond – Series 69-4	Mar. 4, 2016	Mar. 4, 2036		80,000	Feb. 22, 2016	Korea Securities Finance Corp.

Maintenance of Financial Ratio	Key Term	Debt ratio no greater than 300%
	Compliance Status	Compliant
Restriction on Liens	Key Term	The total amount of secured debt not to exceed 100% of share capital as of the end of the previous fiscal year
	Compliance Status	Compliant
Restriction on Disposition of Assets	Key Term	Disposal of assets per fiscal year not to exceed Won 2 trillion
	Compliance Status	Compliant
Restriction on Changes of Ownership Structure	Key Term	Not applicable
	Compliance Status	Not applicable
Submission of Compliance Certificate	Compliance Status	Submitted on August 17, 2023
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	Not applicable
	Compliance Status	Not applicable
Submission of Compliance Certificate	Compliance Status	Submitted on August 17, 2023
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 74-2	Sept. 17, 2018	Sept. 17, 2023		150,000	Sept. 5, 2018	Korea Securities Finance Corp.
Unsecured Bond – Series 74-3	Sept. 17, 2018	Sept. 17, 2038		50,000	Sept. 5, 2018	Korea Securities Finance Corp.
Unsecured Bond – Series 75-2	Mar. 6, 2019	Mar. 6, 2024		120,000	Feb. 21, 2019	Korea Securities Finance Corp.
Unsecured Bond – Series 75-3	Mar. 6, 2019	Mar. 6, 2029		50,000	Feb. 21, 2019	Korea Securities Finance Corp.
Unsecured Bond – Series 75-4	Mar. 6, 2019	Mar. 6, 2039		50,000	Feb. 21, 2019	Korea Securities Finance Corp.

Maintenance of Financial Ratio	Key Term	Debt ratio no greater than 300%
	Compliance Status	Compliant
Restriction on Liens	Key Term	The total amount of secured debt not to exceed 150% of share capital as of the end of the previous fiscal year
	Compliance Status	Compliant
Restriction on Disposition of Assets	Key Term	Disposal of assets per fiscal year not to exceed 50% of total assets
	Compliance Status	Compliant
Restriction on Changes of Ownership Structure	Key Term	Restriction of cross-shareholding<br> <br>Exclusion<br>from corporate group
	Compliance Status	Compliant
Submission of Compliance Certificate	Compliance Status	Submitted on August 17, 2023
Name	Issue Date	Maturity Date	Principal Amount(millions of Won)		Date of FiscalAgency Agreement	Fiscal Agent
---	---	---	---	---	---	---
Unsecured Bond – Series 76-2	July 29, 2019	July 29, 2024		60,000	July 17, 2019	Korea Securities Finance Corp.
Unsecured Bond – Series 76-3	July 29, 2019	July 29, 2029		120,000	July 17, 2019	Korea Securities Finance Corp.
Unsecured Bond – Series 76-4	July 29, 2019	July 29, 2039		50,000	July 17, 2019	Korea Securities Finance Corp.
Unsecured Bond – Series 76-5	July 29, 2019	July 29, 2049		50,000	July 17, 2019	Korea Securities Finance Corp.
Maintenance of Financial Ratio	Key Term	Debt ratio no greater than 300%
---	---	---
	Compliance Status	Compliant
Restriction on Liens	Key Term	The total amount of secured debt not to exceed 150% of share capital as of the end of the previous fiscal year
	Compliance Status	Compliant
Restriction on Disposition of Assets	Key Term	Disposal of assets per fiscal year not to exceed 50% of total assets
	Compliance Status	Compliant
Restriction on Changes of Ownership Structure	Key Term	Restriction of cross-shareholding<br> <br>Exclusion<br>from corporate group
	Compliance Status	Compliant
Submission of Compliance Certificate	Compliance Status	Submitted on August 17, 2023
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 17, 2023

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 17, 2023
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 17, 2023
Name	Issue Date	Maturity Date	Principal Amount(millions of Won)		Date of FiscalAgency Agreement	Fiscal Agent
---	---	---	---	---	---	---
Unsecured Bond – Series 80-1	Jan. 15, 2021	Jan. 14, 2024		80,000	Jan. 5, 2021	Korea Securities Finance Corp.
Unsecured Bond – Series 80-2	Jan. 15, 2021	Jan. 15, 2026		80,000	Jan. 5, 2021	Korea Securities Finance Corp.
Unsecured Bond – Series 80-3	Jan. 15, 2021	Jan. 15, 2031		50,000	Jan. 5, 2021	Korea Securities Finance Corp.
Unsecured Bond – Series 80-4	Jan. 15, 2021	Jan. 15, 2041		100,000	Jan. 5, 2021	Korea Securities Finance Corp.

Maintenance of Financial Ratio	Key Term	Debt ratio no greater than 300%
	Compliance Status	Compliant
Restriction on Liens	Key Term	The total amount of secured debt not to exceed 150% of share capital as of the end of the previous fiscal year
	Compliance Status	Compliant
Restriction on Disposition of Assets	Key Term	Disposal of assets per fiscal year not to exceed 50% of total assets
	Compliance Status	Compliant
Restriction on Changes of Ownership Structure	Key Term	Restriction of cross-shareholding<br> <br>Exclusion<br>from corporate group
	Compliance Status	Compliant
Submission of Compliance Certificate	Compliance Status	Submitted on August 17, 2023
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 17, 2023
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	August10, 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 17, 2023
Name	Issue Date	Maturity Date	Principal Amount<br>(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 17, 2023
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 17, 2023

Name	Issue Date	Maturity Date		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 17, 2023

[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 47-2	Mar. 26, 2019	Mar. 26, 2024	160,000	Mar. 14, 2019	Korea Securities Finance Corp.
Unsecured Bond – Series 48-2	Sept. 24, 2019	Sept. 24, 2024	100,000	Sept. 10, 2019	Korea Securities Finance Corp.
Unsecured Bond – Series 48-3	Sept. 24, 2019	Sept. 23, 2026	50,000	Sept. 10, 2019	Korea Securities Finance Corp.
Unsecured Bond – Series 49-1	June 11, 2020	June 9, 2023	100,000	June 1, 2020	Korea Securities Finance Corp.
Unsecured Bond – Series 49-2	June 11, 2020	June 11, 2025	100,000	June 1, 2020	Korea Securities Finance Corp.
Unsecured Bond – Series 50	Sept. 25, 2020	Sept. 25, 2025	160,000	Sept. 15, 2020	Korea Securities Finance Corp.
Unsecured Bond – Series 51	July 13, 2021	July 12, 2024	100,000	July 1, 2021	Korea Securities Finance Corp.
Unsecured Bond – Series 52-1	Jan. 25, 2022	Jan. 24, 2025	100,000	Jan. 13, 2022	Korea Securities Finance Corp.
Unsecured Bond – Series 52-2	Jan. 25, 2022	Jan. 25, 2032	50,000	Jan. 13, 2022	Korea Securities Finance Corp.
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.
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 11, 2023

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, 2022.

V.	AUDITOR’S OPINION

1. Independent Auditors and Audit Opinions

A.	Independent Auditor and Audit Opinion (Separate and Consolidated)
Period	Independent auditor	Audit opinion	Emphasis of Matter	Critical Audit Matters
---	---	---	---	---
Nine months ended<br>September 30, 2023	Ernst & Young Han Young	—	—	—
Year ended<br>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
Year ended<br>December 31, 2021	KPMG Samjong Accounting Corp.	Unqualified	Spin-off and disclosure of discontinued operations in the consolidated financial statements	Revenue recognition; 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, 2023	Ernst & Young Han Young	Quarterly and semi-annual review		2,780		24,800		1,480		13,203
		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
Year ended December 31, 2021	KPMG Samjong Accounting Corp.	Quarterly and semi-annual review		2,450		24,500		2,450		24,500
		Separate financial statements audit
		Consolidated financial statements audit
		English financial statements review and other audit task
		Internal accounting system audit

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, 2023	—	—	—	—
Year ended December 31, 2022	—	—	—	—
Year ended December 31, 2021	May 17, 2021	Confirmation of financial information in connection with frequency reallocation application	May 17, 2021 – May 24, 2021	2
	May 26, 2021	Audit and review of financial statements of the newly established company and subsidiaries involved in the Spin-off	May 26, 2021 – July 28, 2021	1,143
	August 5, 2021	Review of carve-out financial statements in connection with the Spin-off	August 5, 2021 – August 13,2021	10
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: 2	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: 2	In-person	Report on 2022 results of audit of financial statements; report on results of 2022 internal accounting management system audit
April 19, 2023	Company’s Audit Committee: 4<br><br><br>Accounting Firm’s Independent Auditor: 2	In-person	Report on 2022 PCAOB audit; report on audit plans for 2023

VI.	CORPORATE ORGANIZATION INCLUDING BOARD OF DIRECTORS

1. Board of Directors

2. Audit System

3. Shareholders’ Exercise of Voting Rights

VII.	SHAREHOLDERS

1. Shareholdings of the Largest Shareholder and Related Persons

A.	Shareholdings of the Largest Shareholder and Related Persons
(As of September 30, 2023)			(Unit: in shares and percentages)
---	---	---	---	---	---	---	---	---	---	---
Name	Relationship	Type of share	Number of shares owned and ownership ratio
			Beginning of Period				End of Period
			Number ofshares		Ownershipratio		Number ofshares		Ownershipratio
SK Inc.	Largest Shareholder	Common share		65,668,397		30.01		65,668,397		30.01
Tae Won Chey	Officer of the Company	Common share		303		0.00		303		0.00
Dong Hyun Jang	Officer of affiliated company	Common share		762		0.00		762		0.00
Jung Ho Park	Officer of affiliated Company	Common share		21,530		0.01		21,530		0.01
Young Sang Ryu	Officer of the Company	Common share		7,340		0.00		11,974		0.01
Yong-Hak Kim	Officer of the Company	Common share		1,711		0.00		3,358		0.00
Seok-Dong Kim	Officer of the Company	Common share		1,447		0.00		2,785		0.00
Youngmin Yoon	Officer of the Company	Common share		1,447		0.00		2,785		0.00
Haeyun Oh	Officer of the Company	Common share		0		0.00		1,338		0.00
Junmo Kim	Officer of the Company	Common share		1,447		0.00		2,785		0.00
Kyu-nam Choi	Officer of the Company	Common share		455		0.00		455		0.00
Poong Young Yoon	Officer of affiliated company	Common share		2,733		0.00		2,733		0.00
Jong Ryeol Kang	Officer of the Company	Common share		3,484		0.00		5,758		0.00
Total		Common share		65,712,503		30.03		65,724,963		30.03
*	The number of shares owned and ownership ratio as of the beginning of the period do not account for the shares<br>owned by Haeyun Oh, who was newly appointed in March 2023.
---	---
**	The number of shares owned and ownership ratio as of the beginning of the period account for the shares owned<br>by Jung Ho Ahn, whose term expired in March 2023.
---	---
B.	Overview of the Largest Shareholder
---	---

As of September 30, 2023, 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, 2023)						(Unit: in shares and percentages)
LargestShareholder	Date of the change	Shares Held*		HoldingRatio		Remarks
SK Inc.	February 4, 2021		21,628,971		26.79	Jung Ho Park, representative director of the Company, purchased 1,000 additional shares; Young Sang Ryu, inside director of the Company, acquired 500 additional shares.
	May 6, 2021		21,628,971		30.02	Changes in equity ratio due to cancellation of treasury shares
	June 21, 2021		21,629,471		30.02	Independent directors, Yong-Hak Kim, Seok-Dong Kim, Jung Ho Ahn, Youngmin Yoon and Junmo Kim, each acquired 100 shares (total of 500 shares)
	October 12, 2021		21,629,621		30.02	Kyu-Nam Choi, independent director of the Company, acquired 150 shares.
	October 25, 2021		21,629,821		30.02	Jung Ho Park, representative director of the Company, and Young Sang Ryu, inside director of the Company each acquired 100 additional shares (total of 200 shares).
	October 28, 2021		108,149,105		30.02	Changes in total number of shares due to stock-split
	November 2, 2021		65,688,437		30.02	Changes in total number of shares due to the Spin-off; Poong Young Yoon, inside director of SK Square, acquired 2,733 shares.
	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, inside director of the Company, acquired 3,484 shares.
	May 3, 2022		65,712,503		30.03	Four independent directors of the Company, Youngmin Yoon, Jung Ho Ahn, Junmo Kim, Seok-dong Kim, each acquired 1,144 shares. Yong-Hak Kim, another independent director of the Company, acquired 1,408 shares.
	February 27, 2023		65,719,411		30.03	Young Sang Ryu, representative director of the Company, and Jong Ryeol Kang, inside 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 24, 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.

VIII.	EMPLOYEES AND DIRECTORS

1. Directors and Officers

A.	Registered Directors
(As of September 30, 2023)
---	---	---	---	---	---	---
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	Longer than<br>5 years	Mar. 24, 2024
Jong Ryeol Kang	Male	Oct. 1964	Representative Director; Head of ICT Infrastructure Center (CSPO)	Former Head, Corporate Culture Division	1 year and<br>7 months	Mar. 24, 2025
Kyu-Nam Choi	Male	Apr. 1964	Non-executive Director	Head of Investment 1 Team; Head of Environment Task Force; Former Head of Future Business Team, SUPEX Council	2 years	Mar. 24, 2024
Yong-Hak Kim	Male	Jan. 1953	Independent Director	Former President (Professor Emeritus), Yonsei University	3 years and<br>7 months	Mar. 27, 2026
Seok-Dong Kim	Male	May 1953	Independent Director	Former Chairman, Financial Services Commission	4 years and<br>7 months	Mar. 24, 2025
Youngmin Yoon	Female	Dec. 1963	Independent Director	Professor, Department of Media and Communication at Korea University	Longer than<br>5 years	Mar. 24, 2024
Junmo Kim	Male	Sep. 1976	Independent Director	Professor, Department of Electrical Engineering at Korea Advanced Institute of Science and Technology	3 years and<br>7 months	Mar. 27, 2026
Haeyun Oh	Female	Nov. 1974	Independent Director	President, KAIST AI Research Institute	7 months	March 27, 2026

2. Compensation of Directors and Officers

IX.	RELATED PARTY TRANSACTIONS

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

None.

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

A.	Purchase and Dispositions of Investments
(As of September 30, 2023)					(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		31,203		39,066		—		70,269	New acquisition
Atlas Investment	Subsidiary	Shares		159,632		24,601		—		184,233	New acquisition

3. Transactions with the Largest Shareholder and Related Parties

(As of September 30, 2023)			(Unit: in millions of Won)
Counterparty	RelationshipwithCounterparty	Type	Transaction Period	Transaction Details	Transaction Amount
PS&Marketing	Affiliate	Purchase	January 1, 2023 – September 30, 2023	Marketing fees, etc.	914,395

4. Related Party Transactions

See Note 31 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, 2023)							(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-<br>term loans		70,946		99,913		96,161		74,698		—		—
Daehan Kanggun BCN Inc.	Investee	Long-term loans		22,147		—		—		22,147		—		—
B.	Other transactions
---	---

See Note 32 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, 2023, 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, 2023, there were 21 pending lawsuits against SK Broadband (aggregate amount of claims of Won 10,251 million), and provisions in the amount of Won 218 million in connection with such lawsuits were recognized.

B.	Other Contingent Liabilities and Guarantees for Payment

[SK Telecom]

None.

[SK Broadband]

As of September 30, 2023, SK Broadband has entered into revolving credit facilities with a limit of Won 139 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 1,228 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, 2023, SK Broadband has been provided with the following material payment guarantees by other parties.

(Unit: in millions of Won)
Guarantor	Guarantee Details	Guaranteed Amount
Seoul Guarantee Insurance Company	Contract and defect performance guarantee		34,573
Korea Content Financial Cooperative	Contract performance guarantee		28,068

[SK Stoa]

As of September 30, 2023, SK Stoa has been provided with the following material payment guarantees by other parties.

(Unit: in millions of Won)
Guarantor	Guarantee Details	Guaranteed Amount
Kookmin Bank	Performance guarantee		1,540
Kookmin Bank	Revolving credit		18,000

[SK M&Service]

As of September 30, 2023, SK M&Service has entered into the following credit facilities with financial institutions.

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

As of September 30, 2023, 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 38 other companies	Transaction performance guarantee		2,262
SK Energy	Transaction performance guarantee		700

[SK Telink]

As of September 30, 2023, SK Telink provided the following material payment guarantee to another party.

(Unit: in millions of Won)
Guarantor	Counterparty	Guaranteed Amount		Guarantee Details
SK Telink	Korea Coast Guard		1,670	Contract guarantee

As of September 30, 2023, SK Telink has been provided with the following material payment guarantees by other parties.

(Unit: in millions of Won)
Guarantor	Guarantee Details	Guaranteed Amount
Seoul Guarantee Insurance Company	Contract performance guarantee		759

[SK Communications]

As of September 30, 2023, SK Communications provided the following material payment guarantee to another party.

(Unit: in millions of Won)
Guarantor	Counterparty	Guaranteed Amount		Guarantee Details
SK Communications	E-payment purchaser or right holder		300	Protect funds of users of electronic financial transactions

[PS&Marketing]

As of September 30, 2023, PS&Marketing has entered into the following agreements with financial institutions.

(Unit: billions of Won)
Financial Institution	Credit Limit	Details
KEB Hana Bank	5		Line of credit agreement
Shinhan Bank	5		Line of credit agreement

As of September 30, 2023, 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		1,597

[Home&Service]

As of September 30, 2023, 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		4,089

[Service Top]

As of September 30, 2023, Service Top has been provided with the following material payment guarantees by other parties.

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

3. Status of Sanctions, etc.

4. Material Events Subsequent to the Reporting Period

(1) On October 25, 2023, the Board of Directors approved the quarterly dividend as follows:

Classification	Content
Dividend Amount	Cash dividend of Won 830 per share<br> <br>(Total:<br>Won 179,623 million)
Dividend Return Rate (based on market price)	1.63%
Dividend Record Date	September 30, 2023
Dividend Payment Date	Scheduled to be paid by November 15, 2023, in accordance with Article 165-12(3) of the Financial Investments Services and Capital Markets Act

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 12, 2023

SK TELECOM CO., LTD. AND ITS SUBSIDIARIES

Interim Consolidated Financial Statements

For the Nine-Month Periods ended September 30, 2023 and 2022

(With the Independent Auditor’s Review Report Thereon)

Contents

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

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

Report on review of interim consolidated financial statements

(English Translation of a Report Originally Issued in Korean)

The Shareholders and Board of Directors

SK TelecomCo., Ltd.

We have reviewed the accompanying interim consolidated financial statements of SK Telecom Co., Ltd. and its subsidiaries (collectively referred to as the “Group”), which comprise the interim consolidated statement of financial position as of September 30, 2023, and the related interim consolidated statements of profit or loss, interim consolidated statements of comprehensive income for the three-month and nine-month periods ended September 30, 2023 and 2022, interim consolidated statements of changes in equity and interim consolidated statements of cash flows for the nine-month periods then ended, and a summary of material accounting policy information and other explanatory information.

Management’s responsibility for the interim consolidatedfinancial 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, 2022, and the related consolidated statement of profit or loss, consolidated statement of comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the year then ended (not presented herein) in accordance with KSA, and our report dated March 10, 2023 expressed an unqualified opinion thereon. The accompanying consolidated statement of financial position as of December 31, 2022, presented for comparative purposes, is not different, in all material respects, from the above audited consolidated statement of financial position.

November 10, 2023

This review report is effective as of November 10, 2023, the independent auditor’s review report date. Accordingly, certain material subsequent events<br>or circumstances may have occurred during the period from the independent auditor’s review report date to the time this review report is used. Such events and circumstances could significantly affect the accompanying interim consolidated<br>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, 2023 AND DECEMBER 31, 2022 AND

FOR THE THREE-MONTH AND NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2023 AND 2022

“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, 2023 and December 31, 2022

(In millions of won)		September 30, 2023<br>(Unaudited)		December 31, 2022
Assets
Current Assets:
Cash and cash equivalents	29,30	~~W~~	1,164,272		1,882,291
Short-term financial instruments	29,30		430,919		237,230
Accounts receivable – trade, net	5,29,30,31		2,129,085		1,970,611
Short-term loans, net	5,29,30		82,689		78,590
Accounts receivable – other, net	5,29,30,31,32		399,529		479,781
Contract assets	7,30		89,979		83,058
Prepaid expenses	6		1,972,405		1,974,315
Prepaid income taxes	27		99		415
Derivative financial assets	29,30		14		168,527
Inventories, net	8		187,321		166,355
Non-current assets held for sale	35		5,447		6,377
Advanced payments and others	5,29,30,31		152,830		171,646
		****	6,614,589	****	7,219,196
Non-Current Assets:
Long-term financial instruments	29,30		375		375
Long-term investment securities	9,29,30,32		1,630,093		1,410,736
Investments in associates and joint ventures	11		1,975,227		1,889,289
Investment property, net	13		35,597		25,137
Property and equipment, net	12,14,31,32		12,655,691		13,322,492
Goodwill	10		2,075,009		2,075,009
Intangible assets, net	15		2,859,709		3,324,910
Long-term contract assets	7,30		42,289		49,163
Long-term loans, net	5,29,30,31		30,022		26,973
Long-term accounts receivable – other, net	5,29,30,31,32		340,235		373,951
Long-term prepaid expenses	6		1,091,463		1,073,422
Guarantee deposits, net	5,29,30,31		179,486		167,441
Long-term derivative financial assets	29,30		202,603		152,633
Deferred tax assets	27		4,721		6,860
Defined benefit assets	19		128,070		175,748
Other non-current assets	5,29,30		14,088		14,927
		****	23,264,678	****	24,089,066
Total Assets		~~W~~	29,879,267	****	31,308,262

(Continued)

SK TELECOM CO., LTD. and its Subsidiaries

Interim Consolidated Statements of Financial Position, Continued

As of September 30, 2023 and December 31, 2022

(In millions of won)		September 30, 2023(Unaudited)			December 31, 2022
Liabilities and Equity
Current Liabilities:
Accounts payable – trade	29,30,31	~~W~~	127,581			89,255
Accounts payable – other	29,30,31		1,631,075			2,427,906
Withholdings	29,30,31		926,948			803,555
Contract liabilities	7		156,224			172,348
Accrued expenses	29,30		1,501,034			1,505,549
Income tax payable	27		120,357			112,358
Provisions	18,34		38,100			39,683
Short-term borrowings	16,29,30,32		12,998			142,998
Current portion of long-term debt, net	16,29,30		1,265,203			1,967,586
Current portion of long-term payables – other	17,29,30		366,193			398,874
Lease liabilities	29,30,31		380,468			386,429
		****	6,526,181	****	****	8,046,541	****
Non-Current Liabilities:
Debentures, excluding current portion, net	16,29,30		7,161,478			6,524,095
Long-term borrowings, excluding current portion, net	16,29,30		328,701			668,125
Long-term payables – other	17,29,30		888,129			1,239,467
Long-term lease liabilities	29,30,31		1,290,007			1,395,628
Long-term contract liabilities	7		63,416			61,574
Defined benefit liabilities	19		227			61
Long-term derivative financial liabilities	29,30		302,593			302,593
Long-term provisions	18		83,305			79,415
Deferred tax liabilities	27		794,772			763,766
Other non-current liabilities	29,30,31		68,908			71,801
		****	10,981,536	****	****	11,106,525	****
Total Liabilities		****	17,507,717	****	****	19,153,066	****
Shareholders’ Equity:
Share capital	1,20		30,493			30,493
Capital surplus and others	20,21		(11,648,587	)		(11,567,117	)
Retained earnings	22		22,828,633			22,463,711
Reserves	23		339,083			391,233
Equity attributable to owners of the Parent Company			11,549,622			11,318,320
Non-controlling interests			821,928			836,876
Total Shareholders’ Equity		****	12,371,550	****	****	12,155,196	****
Total Liabilities and Shareholders’ Equity		~~W~~	29,879,267	****	****	31,308,262	****

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

SK TELECOM CO., LTD. and its Subsidiaries

Interim Consolidated Statements of Profit or Loss

For the three-month and nine-month periods ended September 30, 2023 and 2022

(In millions of won)			2023<br>(Unaudited)							2022<br>(Unaudited)
		Three-monthperiod endedSeptember 30				Nine-monthperiod endedSeptember 30			Three-monthperiod endedSeptember 30				Nine-monthperiod endedSeptember 30
Operating revenue:	4,31
Revenue			~~W~~	4,402,610			13,081,220				4,343,447			12,910,512
Operating expenses:	31
Labor				614,249			1,822,663				581,511			1,811,775
Commission	6			1,381,064			4,089,546				1,384,627			4,065,758
Depreciation and amortization	4			894,783			2,708,614				901,190			2,719,406
Network interconnection				160,924			500,631				180,007			554,652
Leased lines				67,358			206,287				68,943			197,651
Advertising				51,544			144,293				53,582			157,721
Rent				37,442			109,500				34,362			103,484
Cost of goods sold	8			302,507			893,964				304,699			880,015
Others	24			394,777			1,149,573				368,955			1,062,481
				3,904,648			11,625,071				3,877,876			11,552,943
Operating profit	4		****	497,962	****		1,456,149	****		****	465,571	****		1,357,569	****
Finance income	4,26			20,019			184,074				37,070			93,474
Finance costs	4,26			(115,920	)		(377,520	)			(90,063	)		(284,488	)
Gain (loss) relating to investments in associates and joint ventures, net	4,11			(3,235	)		6,437				(51,040	)		(75,909	)
Other non-operating income	4,25			8,593			28,922				9,147			33,760
Other non-operating expenses	4,25			(7,374	)		(27,278	)			(8,324	)		(32,272	)
Profit before income tax	4		****	400,045	****		1,270,784	****		****	362,361	****		1,092,134	****
Income tax expense	27			91,808			312,289				116,755			368,036
Profit for the period			~~W~~	308,237	****		958,495	****		****	245,606	****		724,098	****
Attributable to:
Owners of the Parent Company			~~W~~	297,923			917,612				234,628			699,743
Non-controlling interests				10,314			40,883				10,978			24,355
Earnings per share:	28
Basic earnings per share (in won)			~~W~~	1,346			4,150				1,059			3,159
Diluted earnings per share (in won)				1,345			4,149				1,059			3,157

The accompanying notes are an integral part of the interimconsolidated 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, 2023 and 2022

(In millions of won)			2023<br>(Unaudited)						2022<br>(Unaudited)
	Note		Three-month<br>period ended<br>September 30			Nine-monthperiod ended<br>September 30			Three-month<br>period ended<br>September 30			Nine-monthperiod ended<br>September 30
Profit for the period			~~W~~	308,237	****	****	958,495	****	****	245,606	****	****	724,098	****
Other comprehensive income (loss):
Items that will not be reclassified subsequently to profit or loss, net oftaxes:
Remeasurement of defined benefit liabilities (assets)		19		4,940			4,077			36,129			59,624
Valuation loss on financial assets at fair value through other comprehensive income		23		(78,143	)		(122,691	)		(115,051	)		(485,893	)
Items that are or may be reclassified subsequently to profit or loss, net oftaxes:
Net change in other comprehensive income of investments in associates and joint ventures		11,23		31,838			67,391			136,290			263,200
Net change in unrealized fair value of derivatives		23		(8,336	)		(12,115	)		(2,831	)		(12,395	)
Foreign currency translation differences for foreign operations		23		5,713			15,403			37,768			56,483
Other comprehensive income (loss) for the period, net of taxes			****	(43,988	)	****	(47,935	)	****	92,305	****	****	(118,981	)
Total comprehensive income			~~W~~	264,249	****	****	910,560	****	****	337,911	****	****	605,117	****
Total comprehensive income attributable to:
Owners of the Parent Company			~~W~~	253,670			868,732			320,392			574,586
Non-controlling interests				10,579			41,828			17,519			30,531

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, 2023 and 2022

(In millions of won)			Attributable to owners of the Parent Company														Non-controllinginterests			Total<br>equity
	Note		Share capital		Capital surplus<br>and others			Retainedearnings			Reserves			Sub-total
Balance as of January 1, 2022			~~W~~	30,493	****	(11,623,726	)	****	22,437,341	****	****	735,238	****	****	11,579,346	****	****	755,792	****	****	12,335,138	****
Total comprehensive income:
Profit for the period				—		—			699,743			—			699,743			24,355			724,098
Other comprehensive income (loss)		11,19,23		—		—			54,079			(179,236	)		(125,157	)		6,176			(118,981	)
				—		—			753,822			(179,236	)		574,586			30,531			605,117
Transactions with owners:
Annual dividends				—		—			(361,186	)		—			(361,186	)		—			(361,186	)
Interim dividends				—		—			(361,909	)		—			(361,909	)		—			(361,909	)
Share option		21		—		76,876			—			—			76,876			—			76,876
Interest on hybrid bonds				—		—			(11,075	)		—			(11,075	)		—			(11,075	)
Transactions of treasury shares		20,21		—		(4,099	)		—			—			(4,099	)		—			(4,099	)
Changes in ownership in subsidiaries, etc.				—		12,789			—			—			12,789			5,455			18,244
			****	—	****	85,566	****	****	(734,170	)	****	—	****	****	(648,604	)	****	5,455	****	****	(643,149	)
Balance as of September 30, 2022 (Unaudited)			~~W~~	30,493	****	(11,538,160	)	****	22,456,993	****	****	556,002	****	****	11,505,328	****	****	791,778	****	****	12,297,106	****
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)		11,19,23		—		—			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		21		—		(274	)		—			—			(274	)		—			(274	)
Interest on hybrid bonds				—		—			(12,333	)		—			(12,333	)		—			(12,333	)
Repayments of hybrid bonds				—		(400,000	)		—			—			(400,000	)		—			(400,000	)
Issuance of hybrid bonds				—		398,509			—			—			398,509			—			398,509
Transactions of treasury shares		20,21		—		(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	****

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, 2023 and 2022

(In millions of won)		2023<br>(Unaudited)			2022<br>(Unaudited)
Cash flows from operating activities:
Cash generated from operating activities:
Profit for the period		~~W~~	958,495			724,098
Adjustments for income and expenses	33		3,441,826			3,694,741
Changes in assets and liabilities related to operating activities	33		(238,918	)		(37,309	)
			4,161,403			4,381,530
Interest received			40,594			30,502
Dividends received			41,150			15,098
Interest paid			(266,074	)		(192,852	)
Income tax paid			(243,753	)		(444,769	)
Net cash provided by operating activities		****	3,733,320	****	****	3,789,509	****
Cash flows from investing activities:
Cash inflows from investing activities:
Decrease in short-term investment securities, net			—			69,909
Collection of short-term loans			103,455			94,855
Decrease in long-term financial instruments			—			222,432
Proceeds from disposals of long-term investment securities			20,335			100,135
Proceeds from disposals of investments in associates and joint ventures			—			342,645
Proceeds from disposals of property and equipment			9,800			4,526
Proceeds from disposals of intangible assets			688			10,685
Proceeds from disposals of non-current assets held for<br>sale			930			—
Collection of long-term loans			1,175			995
Decrease in deposits			4,609			8,948
Proceeds from settlement of derivatives			1,240			1,277
			142,232			856,407
Cash outflows for investing activities:
Increase in short-term financial instruments, net			(188,001	)		(203,223	)
Increase in short-term loans			(103,809	)		(96,806	)
Increase in long-term loans			(8,936	)		(9,652	)
Increase in long-term financial instruments			—			(330,032	)
Acquisitions of long-term investment securities			(315,153	)		(320,637	)
Acquisitions of investments in associates and joint ventures			(15,590	)		(9,056	)
Acquisitions of property and equipment			(2,056,005	)		(2,125,690	)
Acquisitions of intangible assets			(38,741	)		(48,212	)
Increase in deposits			(5,519	)		(10,936	)
Cash outflow for business combinations, net			—			(62,312	)
			(2,731,754	)		(3,216,556	)
Net cash used in investing activities		~~W~~	(2,589,522	)	****	(2,360,149	)

(Continued)

SK TELECOM CO., LTD. and its Subsidiaries

Interim Consolidated Statements of Cash Flows, Continued

For the nine-month periods ended September 30, 2023 and 2022

(In millions of won)	2023<br>(Unaudited)			2022<br>(Unaudited)
Cash flows from financing activities:			****
Cash inflows from financing activities:
Proceeds from issuance of debentures	~~W~~	1,334,147			891,272
Proceeds from long-term borrowings		49,950			350,000
Cash inflows from settlement of derivatives		183,090			768
Proceeds from issuance of hybrid bonds		398,509			—
Transactions with non-controlling shareholders		256			31,151
		1,965,952			1,273,191
Cash outflows for financing activities:
Repayments of short-term borrowings		(130,000	)		—
Repayments of long-term borrowings		(18,750	)		(32,096	)
Repayments of long-term payables – other		(400,245	)		(400,245	)
Repayments of debentures		(1,884,190	)		(940,000	)
Payments of dividends		(594,158	)		(723,062	)
Repayments of hybrid bonds		(400,000	)		—
Payments of interest on hybrid bonds		(12,333	)		(11,075	)
Repayments of lease liabilities		(294,436	)		(296,622	)
Acquisitions of treasury shares		(98,855	)		—
Transactions with non-controlling shareholders		—			(367	)
		(3,832,967	)		(2,403,467	)
Net cash used in financing activities	****	(1,867,015	)	****	(1,130,276	)
Net increase (decrease) in cash and cash equivalents	****	(723,217	)	****	299,084	****
Cash and cash equivalents at beginning of the period		1,882,291			872,731
Effects of exchange rate changes on cash and cash equivalents		5,198			19,637
Cash and cash equivalents at end of the period	~~W~~	1,164,272	****	****	1,191,452	****

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, 2023 and 2022 (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. Meanwhile, the Board of Directors of the Parent Company resolved to cancel the listing of the Parent Company’s DRs on the London Stock Exchange on June 22, 2023, and the DRs were delisted from the London Stock Exchange as of July 31, 2023. As of September 30, 2023, the Parent Company’s total issued shares are held by the following shareholders:


SK Inc.	65,668,397	30.01
National Pension Service	16,141,446	7.38
Institutional investors and other shareholders	130,756,568	59.74
Kakao Investment Co., Ltd.	3,846,487	1.76
Treasury shares	2,420,246	1.11
	218,833,144	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, 2023 and 2022 (Unaudited)

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

The list of consolidated subsidiaries as of September 30, 2023 and December 31, 2022 is as follows:

				*Ownership (%)(1)**
Subsidiary		Location	Primary business	Sept. 30,<br>2023		Dec. 31,2022
Subsidiaries owned by the Parent Company	SK Telink Co., Ltd.	Korea	International telecommunication and<br>Mobile Virtual Network Operator<br>service		100.00		100.00
	SK Communications Co., Ltd.	Korea	Internet website services		100.00		100.00
	SK Broadband Co., Ltd.	Korea	Fixed-line telecommunication<br>services		74.40		74.40
	PS&Marketing Corporation	Korea	Communications device retail<br>business		100.00		100.00
	SERVICE ACE Co., Ltd.	Korea	Call center management service		100.00		100.00
	SERVICE TOP Co., Ltd.	Korea	Call center management service		100.00		100.00
	SK O&S Co., Ltd.	Korea	Base station maintenance service		100.00		100.00
	SK Telecom China Holdings Co., Ltd.	China	Investment (Holdings company)		100.00		100.00
	SK Global Healthcare Business Group Ltd.	Hong Kong	Investment		100.00		100.00
	YTK Investment Ltd.	Cayman Islands	Investment		100.00		100.00
	Atlas Investment	Cayman Islands	Investment		100.00		100.00
	SK Telecom Americas, Inc.	USA	Information gathering and consulting		100.00		100.00
	Quantum Innovation Fund I	Korea	Investment		59.90		59.90
	SK Telecom Japan Inc.	Japan	Information gathering and consulting		100.00		100.00
	Happy Hanool Co., Ltd.	Korea	Service		100.00		100.00
	SK stoa Co., Ltd.	Korea	Other telecommunication retail<br>business		100.00		100.00
	SAPEON Inc.	USA	Manufacturing non-memory and<br>other electronic integrated circuits		62.50		62.50
Subsidiaries owned by SK Broadband Co., Ltd.	Home & Service Co., Ltd.	Korea	Operation of information and<br>communication facility		100.00		100.00
	Media S Co., Ltd.	Korea	Production and supply services of<br>broadcasting programs		100.00		100.00
Subsidiary owned by PS&Marketing Corporation	SK m&service Co., Ltd.	Korea	Database and Internet website<br>service		100.00		100.00
Subsidiaries owned by SK Telecom Americas, Inc.	Global AI Platform Corporation Korea Co., Ltd.(*2)	Korea	Software development and supply<br>services		100.00		—
	Global AI Platform Corporation (*2)	USA	Software development and supply<br>services		100.00		—
Subsidiary owned by Quantum Innovation Fund I	PanAsia Semiconductor Materials LLC.	Korea	Investment		66.40		66.40
Subsidiary owned by SK Telecom Japan Inc.	SK Planet Japan, K. K.	Japan	Digital contents sourcing service		79.80		79.80
Subsidiary owned by SAPEON Inc.	SAPEON Korea Inc.	Korea	Manufacturing non-memory and<br>other electronic integrated circuits		100.00		100.00
Others(*3)	SK Telecom Innovation Fund, L.P.	USA	Investment		100.00		100.00
	SK Telecom China Fund I L.P.	Cayman Islands	Investment		100.00		100.00
(*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, 2023 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, 2023 and 2022 (Unaudited)

1.	Reporting Entity, Continued
(3)	Condensed financial information of subsidiaries
---	---
1)	Condensed financial information of significant consolidated subsidiaries as of and for the nine-month period<br>ended September 30, 2023 is as follows:
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---	---	---
	As of September 30, 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~~	214,357		66,933		147,424		237,065		15,325
SK Broadband Co., Ltd.		6,274,959		3,197,701		3,077,258		3,201,611		172,773
PS&Marketing Corporation		431,966		206,323		225,643		963,953		374
SERVICE ACE Co., Ltd.		86,246		52,775		33,471		149,325		4,147
SERVICE TOP Co., Ltd.		74,219		45,751		28,468		136,460		4,236
SK O&S Co., Ltd.		120,894		65,933		54,961		220,707		4,710
Home & Service Co., Ltd.		168,280		108,776		59,504		364,042		1,253
SK stoa Co., Ltd.		88,474		28,031		60,443		221,287		1,252
SK m&service Co., Ltd.		159,987		92,003		67,984		190,157		2,987
2)	Condensed financial information of significant consolidated subsidiaries as of and for the year ended<br>December 31, 2022 is as follows:
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---	---	---	---
	As of December 31, 2022						2022
Subsidiary	Total assets		Total liabilities		Total equity		Revenue		Profit (loss)
SK Telink Co., Ltd.	~~W~~	196,281		60,927		135,354		302,595		15,008
SK Broadband Co., Ltd.		6,245,484		3,134,949		3,110,535		4,162,093		212,816
PS&Marketing Corporation		403,030		177,739		225,291		1,376,400		3,856
SERVICE ACE Co., Ltd.		97,597		59,189		38,408		194,798		2,429
SERVICE TOP Co., Ltd.		81,590		53,589		28,001		179,365		1,613
SK O&S Co., Ltd.		121,755		70,280		51,475		331,715		2,059
Home & Service Co., Ltd.		158,248		102,184		56,064		413,259		(1,217	)
SK stoa Co., Ltd.		103,910		44,696		59,214		329,304		9,977
SK m&service Co., Ltd.(*)		160,704		95,263		65,441		211,081		4,157
(*)	The financial information is the condensed financial information after the entity was included in the scope of<br>consolidation.
---	---
(4)	Changes in subsidiaries
---	---

The list of subsidiaries that were newly included in consolidation scope for the nine-month period ended September 30, 2023 is as follows:

Subsidiary	Reason
Global AI Platform Corporation Korea Co., Ltd.	Established by SK Telecom Americas, Inc.
Global AI Platform Corporation	Established by SK Telecom Americas, Inc.

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2023 and 2022 (Unaudited)

1.	Reporting Entity, Continued
(5)	The financial information of significant non-controlling interests of<br>the Group as of and for the nine-month period ended September 30, 2023 and as of and for the year ended December 31, 2022 are as follows:
---	---
(In millions of won)
---	---	---	---
	*SK Broadband Co., Ltd.()**
Ownership of non-controlling interests (%)		25.4
	As of September 30, 2023
Current assets	~~W~~	1,385,435
Non-current assets		5,062,023
Current liabilities		(1,418,975	)
Non-current liabilities		(1,847,536	)
Net assets		3,180,947
Carrying amount of non-controlling interests		805,396
	For the nine-month period 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 provided by 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, 2023 and 2022 (Unaudited)

1.	Reporting Entity, Continued
(5)	The financial information of significant non-controlling interests of<br>the Group as of and for the nine-month period ended September 30, 2023 and as of and for the year ended December 31, 2022 are as follows, Continued:
---	---
(In millions of won)
---	---	---	---
	*SK Broadband Co., Ltd.()**
Ownership of non-controlling interests (%)		25.3
	As of December 31, 2022
Current assets	~~W~~	1,348,305
Non-current assets		5,076,410
Current liabilities		(1,707,805	)
Non-current liabilities		(1,488,834	)
Net assets		3,228,076
Carrying amount of non-controlling interests		816,676
	2022
Revenue	~~W~~	4,156,326
Profit for the year		217,303
Total comprehensive income		237,860
Profit attributable to non-controlling interests		51,528
Net cash provided by operating activities	~~W~~	1,184,794
Net cash used in investing activities		(807,965	)
Net cash used in financing activities		(415,908	)
Effects of exchange rate changes on cash and cash equivalents		(584	)
Net decrease in cash and cash equivalents		(39,663	)
Dividends paid to non-controlling interests for the year<br>ended December 31, 2022	~~W~~	—
(*)	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, 2023 and 2022 (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, 2022. 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, 2022.

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2023 and 2022 (Unaudited)

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

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

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

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

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

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

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

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2023 and 2022 (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, 2022, except for the adoption of new and revised KIFRS applied from January 1, 2023, 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, 2023, initially, but these amended standards are not expected to have a material impact on the Group’s interim consolidated financial statements.

•	Disclosure of Accounting Polices (Amendments to KIFRS 1001)
•	Disclosures of Profit or Loss on Financial Liabilities with Conditions for Adjusting an Exercise Price<br>(Amendments to KIFRS 1001)
---	---
•	Definition of Accounting Estimates (Amendments to KIFRS 1008)
---	---
•	Deferred Tax related to Assets and Liabilities Arising from a Single Transaction (Amendments to KIFRS 1012)<br>
---	---
•	KIFRS 1117 Insurance Contracts and its amendments.
---	---

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2023 and 2022 (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 is presented collectively as others.

(1)	Segment information for the nine-month periods ended September 30, 2023 and 2022 are as follows:<br>
(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
(In millions of won)
	For the nine-month period ended September 30, 2022
	Cellular<br>services		Fixed-line<br>telecommunication<br>services		Others			Sub-total		Adjustments			Total
Total revenue	~~W~~	10,775,291		3,659,772		419,523			14,854,586		(1,944,074	)		12,910,512
Inter-segment revenue		1,117,580		802,308		24,186			1,944,074		(1,944,074	)		—
External revenue		9,657,711		2,857,464		395,337			12,910,512		—			12,910,512
Depreciation and amortization		2,055,412		736,489		16,090			2,807,991		(88,585	)		2,719,406
Operating profit (loss)		1,138,569		245,281		1,347			1,385,197		(27,628	)		1,357,569
Finance income and costs, net														(191,014	)
Loss relating to investments in associates and joint ventures, net														(75,909	)
Other non-operating income and expense,<br>net														1,488
Profit before income tax														1,092,134

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2023 and 2022 (Unaudited)

4.	Operating Segments, Continued
(1)	Segment information for the nine-month periods ended September 30, 2023 and 2022 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 as of September 30, 2023 and December 31, 2022.

(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, 2023		September 30, 2022
Goods and Services transferred at a point in time:
Cellular revenue	Goods and others(*1)	~~W~~	681,626		671,267
Fixed-line telecommunication revenue	Goods and others		73,939		49,770
Other revenue	Others(*2)		342,010		332,831
			1,097,575		1,053,868
Goods and Services transferred over time:
Cellular revenue	Wireless service(*3)		7,733,970		7,673,655
	Cellular interconnection		324,447		375,928
	Other(*4)		993,290		936,861
Fixed-line telecommunication revenue	Fixed-line service		100,963		123,627
	Cellular interconnection		12,099		16,994
	Internet Protocol Television(*5)		1,376,059		1,363,843
	International calls		142,174		136,990
	Internet service and miscellaneous(*6)		1,225,444		1,166,240
Other revenue	Miscellaneous(*2)		75,199		62,506
			11,983,645		11,856,644
		~~W~~	13,081,220		12,910,512

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2022 and 2021 (Unaudited)

4.	Operating Segments, Continued
(2)	Disaggregation of operating revenues considering the economic factors that affect the 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>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, 2023 and 2022 (Unaudited)

5.	Trade and Other Receivables
(1)	Details of trade and other receivables as of September 30, 2023 and December 31, 2022 are as follows:<br>
---	---
(In millions of won)	September 30, 2023
---	---	---	---	---	---	---	---
	Grossamount		Lossallowance			Carrying<br>amount
Current assets:
Accounts receivable – trade	~~W~~	2,377,749		(248,664	)		2,129,085
Short-term loans		83,435		(746	)		82,689
Accounts receivable – other(*)		439,083		(39,554	)		399,529
Accrued income		4,167		—			4,167
Guarantee deposits (Other current assets)		109,780		—			109,780
		3,014,214		(288,964	)		2,725,250
Non-current assets:
Long-term loans		75,140		(45,118	)		30,022
Long-term accounts receivable – other(*)		342,113		(1,878	)		340,235
Guarantee deposits		179,786		(300	)		179,486
Long-term accounts receivable – trade (Other<br>non-current assets)		13,198		(3	)		13,195
		610,237		(47,299	)		562,938
	~~W~~	3,624,451		(336,263	)		3,288,188
(*)	Gross and carrying amounts of accounts receivable – other as of September 30, 2023 include<br>~~W~~264,662 million of financial instruments classified as fair value through profit or loss (“FVTPL”).
---	---
(In millions of won)	December 31, 2022
---	---	---	---	---	---	---	---
	Grossamount		Lossallowance			Carrying<br>amount
Current assets:
Accounts receivable – trade	~~W~~	2,205,530		(234,919	)		1,970,611
Short-term loans		79,298		(708	)		78,590
Accounts receivable – other(*)		522,091		(42,310	)		479,781
Accrued income		1,732		—			1,732
Guarantee deposits (Other current assets)		113,204		—			113,204
		2,921,855		(277,937	)		2,643,918
Non-current assets:
Long-term loans		71,857		(44,884	)		26,973
Long-term accounts receivable – other(*)		375,829		(1,878	)		373,951
Guarantee deposits		167,741		(300	)		167,441
Long-term accounts receivable – trade (Other<br>non-current assets)		14,165		(4	)		14,161
		629,592		(47,066	)		582,526
	~~W~~	3,551,447		(325,003	)		3,226,444
(*)	Gross and carrying amounts of accounts receivable – other as of December 31, 2022 include<br>~~W~~332,669 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, 2023 and 2022 (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, 2023 and 2022 are as follows:
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
			January 1,2023		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
(In millions of won)
	January 1,2022		Impairment		*Write-offs()**			Collection ofreceivablespreviously<br>written-off			Businesscombination		September 30,<br>2022
Accounts receivable – trade	~~W~~	238,881		23,062		(22,957	)		8,748			3		247,737
Accounts receivable – other, etc.		92,010		2,267		(3,687	)		1,225			392		92,207
	~~W~~	330,891		25,329		(26,644	)		9,973			395		339,944
(*)	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, 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 have low 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, 2023 and 2022 (Unaudited)

6.	Prepaid Expenses

The Group pays commissions to its retail stores and authorized dealers, primarily for wireless telecommunication services based on their performance of attracting new customers and renewing contracts with existing customers, and recognizes costs that would not occur in case of not signing contracts with new and existing customers as prepaid expenses among the commissions. These prepaid expenses are amortized on a straight-line basis over the periods that the Group expects to maintain its customers.

(1)	Details of prepaid expenses as of September 30, 2023 and December 31, 2022 are as follows:<br>
(In millions of won)
---	---	---	---	---
	September 30, 2023		December 31, 2022
Current assets:
Incremental costs of obtaining contracts	~~W~~	1,889,538		1,888,182
Others		82,867		86,133
	~~W~~	1,972,405		1,974,315
Non-current assets:
Incremental costs of obtaining contracts	~~W~~	1,027,495		996,180
Others		63,968		77,242
	~~W~~	1,091,463		1,073,422
(2)	Incremental costs of obtaining contracts
---	---

The amortization and impairment losses in connection with incremental costs of obtaining contracts recognized for the three and nine-month periods ended September 30, 2023 and 2022 are as follows:

(In millions of won)	2023				2022
	Three-monthperiod endedSeptember 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~~	620,492		1,868,048		674,485		1,920,211

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2023 and 2022 (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, 2023 and December 31, 2022 are as<br>follows:
(In millions of won)
---	---	---	---	---
	September 30, 2023		December 31, 2022
Contract assets:
Allocation of consideration between performance obligations	~~W~~	132,268		132,221
Contract liabilities:
Wireless service contracts		19,127		18,544
Customer loyalty programs		6,440		7,706
Fixed-line service contracts		146,485		136,880
Others		47,588		70,792
	~~W~~	219,640		233,922
(2)	The amount of revenue recognized for the nine-month periods ended September 30, 2023 and 2022 related to<br>the contract liabilities carried forward from the prior periods are ~~W~~115,026 million and ~~W~~119,051 million, respectively.
---	---
8.	Inventories
---	---
(1)	Details of inventories as of September 30, 2023 and December 31, 2022 are as follows:<br>
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	September 30, 2023							December 31, 2022
	Acquisitioncost		Valuationallowance			Carryingamount		Acquisitioncost		Valuationallowance			Carryingamount
Merchandise	~~W~~	166,441		(7,406	)		159,035		156,919		(5,616	)		151,303
Supplies		27,978		—			27,978		15,052		—			15,052
Raw Materials		308		—			308		—		—			—
	~~W~~	194,727		(7,406	)		187,321		171,971		(5,616	)		166,355
(2)	Inventories recognized as operating expenses for the nine-month periods ended September 30, 2023 and 2022<br>are ~~W~~893,964 million and ~~W~~880,015 million, respectively, which are included in cost of goods sold. In addition, valuation losses on inventories and reversal of valuation losses on inventories which are<br>included in the cost of goods sold and other operating expenses amount to ~~W~~1,790 million and ~~W~~717 million for the nine-month periods ended September 30, 2023 and 2022, respectively. Write-down<br>included in other operating expenses for the nine-month period ended September 30, 2023 is ~~W~~19 million.
---	---

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2023 and 2022 (Unaudited)

9.	Long-term Investment Securities

Details of long-term investment securities as of September 30, 2023 and December 31, 2022 are as follows:

(In millions of won)
	Category	September 30, 2023		December 31, 2022
Equity instruments	FVOCI(*)	~~W~~	1,267,011		1,189,597
	FVTPL		46,746		44,440
			1,313,757		1,234,037
Debt<br><br><br>instruments	FVTPL		316,336		176,699
			316,336		176,699
		~~W~~	1,630,093		1,410,736
(*)	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, 2023 and December 31, 2022 are ~~W~~1,267,011 million and ~~W~~1,189,597 million, respectively.<br>
---	---
10.	Business Combinations
---	---
(1)	2023
---	---

There were no changes in the Group due to the business combinations for the nine-month period ended September 30, 2023.

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2023 and 2022 (Unaudited)

10.	Business Combinations, Continued
(2)	2022
---	---
1)	Acquisition of SK m&service Co., Ltd. by PS&Marketing Corporation:
---	---

PS&Marketing Corporation obtained control over SK m&service Co., Ltd. by acquiring its 3,099,112 shares (100%) for the year ended December 31, 2022. As this transaction is a business combination under common control, the assets acquired and liabilities assumed were recognized at the carrying amounts in the ultimate controlling entity’s consolidated financial statements, and the difference between the consideration transferred and the carrying amounts of net assets was recognized as capital surplus and others.

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

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2023 and 2022 (Unaudited)

11.	Investments in Associates and Joint Ventures
(1)	Investments in associates and joint ventures accounted for using the equity method as of September 30,<br>2023 and December 31, 2022 are as follows:
---	---
(In millions of won)			September 30, 2023				December 31, 2022
---	---	---	---	---	---	---	---	---	---	---
	Country		Ownership<br>(%)		Carryingamount		Ownership(%)		Carryingamount
Investments in associates:
SK China Company Ltd.		China		27.3	~~W~~	922,467		27.3	~~W~~	879,527
Korea IT Fund(*1)		Korea		63.3		327,661		63.3		324,860
UniSK		China		49.0		21,758		49.0		20,839
SK Technology Innovation<br><br><br>Company		Cayman<br>Islands		49.0		74,966		49.0		69,375
SK MENA Investment B.V.		Netherlands		32.1		15,838		32.1		14,296
SK Latin America Investment S.A.		Spain		32.1		13,938		32.1		11,961
SK South East Asia Investment Pte. Ltd.		Singapore		20.0		374,073		20.0		357,537
CITADEL PACIFIC TELECOM HOLDINGS, LLC(*2)		USA		15.0		48,561		15.0		48,542
SM Culture & Contents Co., Ltd.		Korea		23.0		59,979		23.1		59,611
Invites Healthcare Co., Ltd.(*3)		Korea		31.1		—		31.1		—
Nam Incheon Broadcasting Co., Ltd.		Korea		27.3		14,143		27.3		13,575
Home Choice Corp.(*2)		Korea		17.8		3,121		17.8		4,456
Konan Technology Inc.		Korea		20.8		5,978		20.8		8,366
CMES Inc.(*2)		Korea		7.7		900		7.7		900
12CM JAPAN and others(*2,6)		—		—		84,295		—		69,734
						1,967,678				1,883,579
Investments in joint ventures:
UTC Kakao-SK Telecom ESG<br><br><br>Fund(*4,5)		Korea		48.2		7,549		48.2		5,710
						7,549				5,710
					~~W~~	1,975,227			~~W~~	1,889,289

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2023 and 2022 (Unaudited)

11.	Investments in Associates and Joint Ventures, Continued
(1)	Investments in associates and joint ventures accounted for using the equity method as of September 30,<br>2023 and December 31, 2022 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 the carrying amount of investments in Invites Healthcare Co., Ltd. in its entirety as an<br>impairment loss for the year ended December 31, 2022.
---	---
(*4)	The Group additionally contributed ~~W~~2,000 million in cash for the nine-month period ended<br>September 30, 2023, but there is no change in the ownership interest.
---	---
(*5)	These investments were classified as investments in joint ventures as the Group has a joint control pursuant to<br>the agreement with the other shareholders.
---	---
(*6)	The Group contributed ~~W~~6,500 million to Telecom Daean Evaluation Co., Ltd. (tentative)<br>and ~~W~~520 million to Covet Co., Ltd., and obtained significant influence over the investee and the Group additionally contributed ~~W~~6,000 million in cash investment in KB ESG Fund of three telecommunications<br>companies, ~~W~~215 million of investment in KDX Korea Data Exchange, ~~W~~95 million of investment in SK VENTURE CAPITAL, LLC, and ~~W~~260 million of investment in WALDEN SKT VENTURE FUND for<br>the nine-month period ended September 30, 2023.
---	---
(2)	The market value of investments in listed associates as of September 30, 2023 and December 31, 2022<br>are as follows:
---	---
(In millions of won, except for share data)
---	---	---	---	---	---	---	---	---	---	---	---	---
	September 30, 2023						December 31, 2022
	Market priceper share(in won)		Number ofshares		Marketvalue		Market price<br>per share<br>(in won)		Number ofshares		Marketvalue
SM Culture & Contents Co., Ltd.	~~W~~	1,904		22,033,898		41,953		2,960		22,033,898		65,220
Konan Technology Inc.		78,000		1,179,580		92,007		28,250		1,179,580		33,323

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2023 and 2022 (Unaudited)

11.	Investments in Associates and Joint Ventures, Continued, Continued
(3)	The condensed financial information of material associates as of and for the nine-month period ended<br>September 30, 2023 and as of and for the year ended December 31, 2022 are as follows:
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---	---
	September 30, 2023
	Korea ITFund			SK China<br>Company Ltd.			SK South East AsiaInvestment Pte. Ltd.
Current assets	~~W~~	114,932			1,379,969			248,859
Non-current assets		402,439			2,105,819			3,131,584
Current liabilities		—			125,240			541,439
Non-current liabilities		—			281,051			14,886
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	)
(In millions of won)
	December 31, 2022
	Korea ITFund			SK China<br>Company Ltd.			SK South East AsiaInvestment Pte. Ltd.
Current assets	~~W~~	98,132			1,223,426			146,589
Non-current assets		414,804			2,050,001			3,034,335
Current liabilities		—			76,654			488,132
Non-current liabilities		—			276,525			—
Revenue	~~W~~	19,916			62,334			72,658
Profit (loss) for the period		7,505			(11,681	)		(17,504	)
Other comprehensive income (loss)		(11,779	)		58,034			(34,220	)
Total comprehensive income (loss)		(4,274	)		46,353			(51,724	)

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2023 and 2022 (Unaudited)

11.	Investments in Associates and Joint Ventures, Continued
(4)	Reconciliations of financial information of material associates to carrying amounts of investments in<br>associates in the consolidated financial statements as of September 30, 2023 and December 31, 2022 are as follows:
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---	---	---
	September 30, 2023
	Net assets		Ownershipinterests (%)		Net assetsattributable tothe ownershipinterests		Cost-book valuedifferentials		Carrying amount
Korea IT Fund	~~W~~	517,371		63.3		327,661		—		327,661
SK China Company Ltd.(*)		3,079,497		27.3		839,816		82,651		922,467
SK South East Asia<br><br><br>Investment Pte. Ltd.(*)		1,870,365		20.0		374,073		—		374,073
(In millions of won)
	December 31, 2022
	Net assets		Ownershipinterests (%)		Net assetsattributable tothe ownershipinterests		Cost-book valuedifferentials		Carrying amount
Korea IT Fund	~~W~~	512,936		63.3		324,860		—		324,860
SK China Company Ltd.(*)		2,920,248		27.3		796,387		83,140		879,527
SK South East Asia<br><br><br>Investment Pte. Ltd.(*)		1,787,685		20.0		357,537		—		357,537
(*)	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, 2023 and 2022 (Unaudited)

11.	Investments in Associates and Joint Ventures, Continued
(5)	Details of the changes in investments in associates and joint ventures accounted for using the equity method<br>for the nine-month periods ended September 30, 2023 and 2022 are as follows:
---	---
(In millions of won)	For the nine-month period ended September 30, 2023
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	Beginningbalance		Acquisition<br>and disposal			Share of<br>profit<br>(loss)			Other<br>compre-hensive<br>income (loss)			Other<br>decrease			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 Co., Ltd. (tentative), ~~W~~6,000 million of investment in KB ESG Fund of three telecommunications companies, ~~W~~215 million of<br>investment in KDX Korea Data Exchange, ~~W~~95 million of investment in SK VENTURE CAPITAL, LLC, ~~W~~260 million of investment in WALDEN SKT VENTURE FUND and ~~W~~520 million of investment in<br>Covet Co., Ltd.
---	---

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2023 and 2022 (Unaudited)

11.	Investments in Associates and Joint Ventures, Continued
(5)	Details of the changes in investments in associates and joint ventures accounted for using the equity method<br>for the nine-month periods ended September 30, 2023 and 2022 are as follows, Continued:
---	---
(In millions of won)	For the nine-month period ended September 30, 2022
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	Beginningbalance		Acquisitionand disposal			Share ofprofit<br>(loss)			Other<br>compre-hensive<br>income (loss)			Otherincrease<br>(decrease)			Endingbalance
Investments in associates:
SK China Company Ltd.	~~W~~	793,754		—			(16,847	)		169,336			—			946,243
Korea IT Fund (*1)		339,976		—			5,028			(3,047	)		(12,410	)		329,547
HanaCard Co., Ltd.		349,866		(368,389	)		17,749			774			—			—
UniSK		19,156		—			1,804			1,643			—			22,603
SK Technology Innovation Company		86,301		—			(26,630	)		14,509			—			74,180
SK MENA Investment B.V.		15,343		—			(33	)		3,144			—			18,454
SK Latin America Investment S.A.		14,004		—			(2,802	)		527			—			11,729
SK South East Asia Investment Pte. Ltd.		348,782		—			(185	)		67,289			—			415,886
Pacific Telecom Inc.		43,789		—			2,183			6,468			—			52,440
SM Culture & Contents Co., Ltd.		60,261		46			(1,056	)		—			—			59,251
Digital Games International Pte. Ltd.		2,208		(1,118	)		(562	)		111			—			639
Invites Healthcare Co., Ltd.		26,474		—			(11,759	)		(74	)		—			14,641
Nam Incheon Broadcasting Co., Ltd.(*1)		12,525		—			895			—			(136	)		13,284
Home Choice Corp.		3,052		—			(388	)		1			—			2,665
Konan Technology Inc.		3,639		3,738			(442	)		1,636			—			8,571
CMES Inc.(*2)		—		—			—			—			900			900
12CM JAPAN and others(*3)		68,966		(137	)		1,599			2,755			—			73,183
		2,188,096		(365,860	)		(31,446	)		265,072			(11,646	)		2,044,216
Investments in joint ventures:
Finnq Co., Ltd.		7,255		(3,840	)		(3,617	)		202			—			—
UTC Kakao-SK Telecom ESG Fund		2,000		4,000			(236	)		—			—			5,764
		9,255		160			(3,853	)		202			—			5,764
	~~W~~	2,197,351		(365,700	)		(35,299	)		265,274			(11,646	)		2,049,980
(*1)	Dividends received from the associates are deducted from the carrying amount for the nine-month period ended<br>September 30, 2022.
---	---
(*2)	As the Group obtained significant influence over the investee, ~~W~~900 million of financial<br>assets at FVOCI are reclassified to investments in associates for the nine-month period ended September 30, 2022.
---	---
(*3)	The acquisition for the nine-month period ended September 30, 2022 includes<br>~~W~~2,000 million of investment in Smart SKT Infinitum Game Fund, ~~W~~2,000 million of investment in KB ESG Fund of three telecommunications companies and ~~W~~12 million of investment in SK<br>VENTURE CAPITAL, LLC. The disposal for the nine-month period ended September 30, 2022 includes ~~W~~4,850 million relating to disposal of the part of shares of Start-up Win-Win Fund and ~~W~~1,080 million relating to disposal of the part of shares of Daekyo Wipoongdangdang Contents Korea Fund.
---	---

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2023 and 2022 (Unaudited)

11.	Investments in Associates and Joint Ventures, Continued
(6)	The Group discontinued the application of equity method to the following investees due to their carrying<br>amounts being reduced to zero. The details of cumulative unrecognized equity method losses as of September 30, 2023 are as follows:
---	---
(In millions of won)	Unrecognized loss				Unrecognized change in equity
---	---	---	---	---	---	---	---	---	---
	For the nine-monthperiod endedSeptember 30, 2023		Cumulativeloss		For the nine-monthperiod ended<br>September 30, 2023		Cumulativeloss
Wave City Development Co., Ltd.	~~W~~	103		8,799		—		—
Invites Healthcare Co., Ltd.		6,214		6,214		1,176		1,176
Daehan Kanggun BcN Co., Ltd. and others		—		5,780		—		(124	)
	~~W~~	6,317		20,793		1,176		1,052

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2023 and 2022 (Unaudited)

12.	Property and Equipment

Changes in property and equipment for the nine-month periods ended September 30, 2023 and 2022 are as follows:

(In millions of won)
	For the nine-month period ended September 30, 2023
	Beginningbalance		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
(In millions of won)
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	For the nine-month period ended September 30, 2022
	Beginningbalance		Acquisition		Disposal			Transfer			Depreciation			*Businesscombination()**		Endingbalance
Land	~~W~~	972,800		79		(175	)		32,443			—			2,789		1,007,936
Buildings		794,453		902		(554	)		31,582			(41,012	)		8,583		793,954
Structures		291,279		740		(20	)		9,192			(28,679	)		—		272,512
Machinery		7,997,927		281,718		(38,360	)		1,183,005			(1,721,417	)		—		7,702,873
Other		487,716		487,156		(661	)		(484,892	)		(77,839	)		8,554		420,034
Right-of-use<br>assets		1,559,333		374,677		(39,546	)		(21,600	)		(302,720	)		6,331		1,576,475
Construction<br><br><br>in progress		767,751		741,560		(1,709	)		(836,623	)		—			881		671,860
	~~W~~	12,871,259		1,886,832		(81,025	)		(86,893	)		(2,171,667	)		27,138		12,445,644
(*)	Includes assets acquired from SK m&service Co., Ltd. by PS&Marketing Corporation, a subsidiary of the<br>Parent Company for the nine-month period ended September 30, 2022.
---	---

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2023 and 2022 (Unaudited)

13.	Investment Property
(1)	Changes in investment property for the nine-month periods ended September 30, 2023 and 2022 are as<br>follows:
---	---
(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
(In millions of won)
---	---	---	---	---	---	---	---	---	---
	For the nine-month period ended September 30, 2022
	Beginning balance		Transfer		Depreciation			Ending balance
Land	~~W~~	6,071		232		—			6,303
Buildings		7,353		346		(547	)		7,152
Right-of-use<br>assets		9,610		4,314		(1,257	)		12,667
	~~W~~	23,034		4,892		(1,804	)		26,122
(2)	The Group recognized lease income of ~~W~~4,727 million and<br>~~W~~3,815 million for the nine-month periods ended September 30, 2023 and 2022, respectively, from investment property.
---	---

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2023 and 2022 (Unaudited)

14.	Leases
(1)	Details of the right-of-use<br>assets as of September 30, 2023 and December 31, 2022 are as follows:
---	---
(In millions of won)
---	---	---	---	---
	September 30, 2023		December 31, 2022
Right-of-use<br>assets:
Land, buildings and structures	~~W~~	1,435,124		1,546,918
Others		228,654		239,211
	~~W~~	1,663,778		1,786,129
(2)	Details of amounts recognized in the interim consolidated statements of profit or loss for the nine-month<br>periods ended September 30, 2023 and 2022 as a lessee are as follows:
---	---
(In millions of won)
---	---	---	---	---
	For the nine-month period ended
	September 30, 2023		September 30, 2022
Depreciation of<br>right-of-use assets:
Land, buildings and structures	~~W~~	259,949		262,063
Others(*)		47,169		40,657
		307,118		302,720
Interest expense on lease liabilities	~~W~~	34,925		20,867
(*)	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 the Group recognized are immaterial.

(3)	The total cash outflows due to lease payments for the nine-month periods ended September 30, 2023 and 2022<br>amounted to ~~W~~343,541 million and ~~W~~330,953 million, respectively.

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2023 and 2022 (Unaudited)

15.	Intangible Assets
(1)	Changes in intangible assets for the nine-month periods ended September 30, 2023 and 2022 are as follows:<br>
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	For the nine-month period ended September 30, 2023
	Beginningbalance		Acquisition		Disposal			Transfer		Amortization			Impairment			Endingbalance
Frequency usage<br><br><br>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
(In millions of won)
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	For the nine-month period ended September 30, 2022
	Beginningbalance		Acquisition		Disposal			Transfer			Amortization			Impairment			*Businesscombination(3)**		Endingbalance
Frequency usage rights	~~W~~	2,559,689		—		—			—			(357,585	)		—			—		2,202,104
Land usage rights		2,732		—		—			—			(1,201	)		—			—		1,531
Industrial rights		55,954		9,022		(683	)		(103	)		(3,257	)		—			3		60,936
Development costs		200		—		—			—			(426	)		—			657		431
Facility usage rights		17,874		907		(1	)		126			(3,502	)		—			—		15,404
Customer relations		327,257		—		—			—			(20,309	)		—			—		306,948
Club memberships(*1)		88,494		2,669		(6,595	)		—			—			(360	)		1,389		85,597
Other(*2)		817,569		29,658		(382	)		91,967			(260,739	)		—			10,413		688,486
	~~W~~	3,869,769		42,256		(7,661	)		91,990			(647,019	)		(360	)		12,462		3,361,437
(*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.
---	---
(*3)	Includes assets from the acquisition of SK m&service Co., Ltd. by PS&Marketing Corporation, a<br>subsidiary of the Parent Company for the nine-month period ended September 30, 2022.
---	---

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2023 and 2022 (Unaudited)

15.	Intangible Assets, Continued
(2)	Details of frequency usage rights as of September 30, 2023 are as follows:
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---
	Amount		Description		Commencementof amortization		Completion ofamortization
800MHz license	~~W~~	120,768		LTE service		Jul. 2021		Jun. 2026
1.8GHz license		334,980		LTE service		Dec. 2021		Dec. 2026
2.6GHz license		394,605		LTE service		Sept. 2016		Dec. 2026
2.1GHz license		251,754		W-CDMA and LTE service		Dec. 2021		Dec. 2026
3.5GHz license		622,264		5G service		Apr. 2019		Nov. 2028
	~~W~~	1,724,371
16.	Borrowings and Debentures
---	---
(1)	Short-term borrowings as of September 30, 2023 and December 31, 2022 are as follows:<br>
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---	---
	Lender	Annual<br>interest rate (%)		Maturity		September 30,2023		December 31,<br>2022
Short-term borrowings	BNK Securities. Co.,Ltd.		—		—	~~W~~	—		100,000
	KEB Hana Bank		—		—		—		30,000
	Hana Financial Investment Co., Ltd.(*)		6.00		Nov. 27, 2023		4,642		4,642
	DB Financial Investment Co., Ltd.(*)		6.30		Nov. 20, 2023		2,785		2,785
	Shinhan Investment Corp.(*)		6.20		Nov. 27, 2023		5,571		5,571
						~~W~~	12,998		142,998
(*)	PanAsia Semiconductor Materials LLC., a subsidiary of the Parent Company, has pledged its<br>~~W~~22,750 million of equity instruments at FVTPL on ~~W~~12,998 million of short-term borrowings as of September 30, 2023.
---	---

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2022 and 2021 (Unaudited)

16.	Borrowings and Debentures, Continued
(2)	Changes in long-term borrowings for the nine-month period ended September 30, 2023 are as follows:<br>
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---
	Lender	Annual<br>interest rate (%)		Maturity		Book value
Current						~~W~~	124,987
Non-current							668,125
As of January 1, 2023							793,112
New long-term borrowings:
	Mizuho Bank, Ltd.		4.80		Jul. 25, 2025		49,950
							49,950
Repayments of long-term borrowings:
	Korea Development Bank(*1)		1.87		Feb. 10, 2026		(9,375	)
	Credit Agricole CIB(*2,3)		3M CD + 0.82		Dec. 14, 2023		(9,375	)
							(18,750	)
Other changes(*4)							12
Current(*5)							495,623
Non-current(*5)							328,701
As of September 30, 2023						~~W~~	824,324
(*1)	The long-term borrowings are to be repaid by installments on an annual basis from 2022 to 2026.<br>
---	---
(*2)	The long-term borrowings are to be repaid by installments on an annual basis from 2020 to 2023.<br>
---	---
(*3)	3M CD rates are 3.83% as of September 30, 2023.
---	---
(*4)	Other changes include the effects of changes in present value discount for the nine-month period ended<br>September 30, 2023.
---	---
(*5)	~~W~~389,375 million were reclassified from<br>non-current to current for the nine-month period ended September 30, 2023.
---	---

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2023 and 2022 (Unaudited)

16.	Borrowings and Debentures, Continued
(3)	Changes in debentures for the nine-month period ended September 30, 2023 are as follows:<br>
---	---
(In millions of won, thousands of other currencies)
---	---	---	---	---	---	---	---	---	---
	Purpose	Annual interestrate (%)		Maturity		Face value		Book value
Current						~~W~~	1,843,840		1,842,599
Non-current							6,542,110		6,524,095
As of January 1, 2023							8,385,950		8,366,694
Debentures newly issued:
Unsecured corporate bonds	Refinancing fund		3.65		Feb. 17, 2026		110,000		109,506
Unsecured corporate bonds	Refinancing fund		3.83		Feb. 17, 2028		190,000		189,224
Unsecured corporate bonds	Refinancing fund		3.72		Apr. 10, 2026		80,000		79,639
Unsecured corporate bonds	Refinancing fund		3.80		Apr. 12, 2028		200,000		199,226
Unsecured corporate bonds	Refinancing fund		3.96		Apr. 12, 2030		70,000		69,737
Unsecured corporate bonds(*1)	Refinancing fund		4.21		Feb. 28, 2025		50,000		49,760
Unsecured corporate bonds(*1)	Refinancing fund		4.28		Feb. 27, 2026		100,000		99,570
Unsecured corporate bonds(*1)	Refinancing fund		4.37		Mar. 2, 2028		90,000		89,607
Unsecured global bonds(*1)	Refinancing fund		4.88		Jun. 28, 2028		390,930 300,000		385,464 300,000
							1,280,930		1,271,733
Debentures repaid:
Unsecured corporate bonds	Operating fund		3.03		Apr. 23, 2023		(230,000		(230,000
Unsecured corporate bonds	Refinancing fund		2.81		Feb. 20, 2023		(100,000		(100,000
Unsecured corporate bonds	Operating and refinancing fund		2.33		Sep. 17, 2023		(150,000		(150,000
Unsecured corporate bonds	Operating and refinancing fund		1.64		Jan. 13, 2023		(170,000		(170,000
Unsecured corporate bonds(*1)	Refinancing fund		2.93		Feb. 1, 2023		(80,000		(80,000
Unsecured corporate bonds(*1)	Refinancing fund		1.48		Jun. 9, 2023		(100,000		(100,000
Unsecured global<br><br><br>bonds	Operating fund		3.75		Apr. 16, 2023		(659,000 500,000		(659,000 500,000
Unsecured global bonds(*1)	Refinancing fund		3.88		Aug. 13, 2023		(395,190 300,000		(395,190 300,000
							(1,884,190		(1,884,190
Other changes(*2)							171,660		176,821
Current(*3)							770,000		769,580
Non-current(*3)							7,184,350		7,161,478
As of September 30, 2023						~~W~~	7,954,350		7,931,058

All values are in US Dollars.

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2023 and 2022 (Unaudited)

16.	Borrowings and Debentures, Continued
(3)	Changes in debentures for the nine-month period ended September 30, 2023 are as follows, Continued:<br>
---	---
(*1)	Unsecured corporate bonds were issued by SK Broadband Co., Ltd., a subsidiary of the Parent Company.<br>
---	---
(*2)	Other changes include the effects of foreign currency translation of debentures and amortization in discount on<br>issuance of debentures for the nine-month period ended September 30, 2023.
---	---
(*3)	~~W~~769,296 million were reclassified from<br>non-current to current for the nine-month period ended September 30, 2023.
---	---
17.	Long-term Payables – other
---	---
(1)	As of September 30, 2023 and December 31, 2022, details of long-term payables – other which<br>consist of payables related to the acquisition of frequency usage rights are as follows (See note 15):
---	---
(In millions of won)
---	---	---	---	---	---	---
	September 30,<br>2023			December 31,2022
Long-term payables – other	~~W~~	1,289,416			1,690,470
Present value discount on long-term payables – other		(35,094	)		(52,129	)
Current portion of long-term payables – other		(366,193	)		(398,874	)
Carrying amount at period end	~~W~~	888,129			1,239,467
(2)	The sum of portions repaid among the principal of long-term payables – other for the nine-month periods<br>ended September 30, 2023 and 2022 amounts to ~~W~~400,245 million and ~~W~~400,245 million, respectively. The repayment schedule of the principal amount of long-term payables – other as of<br>September 30, 2023 is as follows:
---	---
(In millions of won)
---	---	---
	Amount
Less than 1 year	~~W~~	369,150
1~3 years		737,491
3~5 years		182,775
	~~W~~	1,289,416

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2023 and 2022 (Unaudited)

18.	Provisions

Changes in provisions for the nine-month periods ended September 30, 2023 and 2022 are as follows:

(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
(In millions of won)
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	For the nine-month period ended September 30, 2022																	As of September 30, 2022
	Beginningbalance		Increase		Utilization			Reversal			Other			Business<br>combination		Endingbalance		Current		Non-current
Provision for restoration	~~W~~	114,731		5,040		(4,013	)		(574	)		27			991		116,202		72,763		43,439
Emission allowance		1,885		1,934		—			(1,545	)		—			—		2,274		2,274		—
Other provisions		10,379		3,189		(12,338	)		(72	)		(18	)		—		1,140		540		600
	~~W~~	126,995		10,163		(16,351	)		(2,191	)		9			991		119,616		75,577		44,039

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2023 and 2022 (Unaudited)

19.	Defined Benefit Liabilities (Assets)
(1)	Details of defined benefit liabilities (assets) as of September 30, 2023 and December 31, 2022 are as<br>follows:
---	---
(In millions of won)
---	---	---	---	---	---	---
	September 30, 2023			December 31, 2022
Present value of defined benefit obligations	~~W~~	1,112,352			1,038,320
Fair value of plan assets		(1,240,195	)		(1,214,007	)
Defined benefit assets(*)		(128,070	)		(175,748	)
Defined benefit liabilities		227			61
(*)	Since the Group entities neither have legally enforceable right nor intention to settle the defined benefit<br>obligations of the Group entities with defined benefit assets of other Group entities, defined benefit assets of the Group entities have been separately presented from defined benefit liabilities.
---	---
(2)	Changes in present value of defined benefit obligations for the nine-month periods ended September 30,<br>2023 and 2022 are as follows:
---	---
(In millions of won)	For the nine-month period ended
---	---	---	---	---	---	---
	September 30, 2023			September 30, 2022
Beginning balance	~~W~~	1,038,320			1,035,016
Current service cost		98,891			101,989
Interest cost		40,081			23,054
Remeasurement
- Demographic assumption		1,168			(7,332	)
- Financial assumption		2,392			(85,125	)
- Adjustment based on experience		(8,566	)		449
Business combinations(*)		—			29,357
Benefit paid		(66,839	)		(57,528	)
Others		6,905			2,239
Ending balance	~~W~~	1,112,352			1,042,119
(*)	Includes liabilities acquired from the acquisition of SK m&service Co., Ltd. by PS&Marketing<br>Corporation, a subsidiary of the Parent Company for the nine-month period ended September 30, 2022.
---	---
(3)	Changes in fair value of plan assets for the nine-month periods ended September 30, 2023 and 2022 are as<br>follows:
---	---
(In millions of won)	For the nine-month period ended
---	---	---	---	---	---	---
	September 30, 2023			September 30, 2022
Beginning balance	~~W~~	1,214,007			1,040,286
Interest income		45,993			23,050
Remeasurement		700			(13,117	)
Contributions		53,001			44,678
Benefit paid		(74,347	)		(70,934	)
Business combinations(*)		—			26,618
Others		841			1,069
Ending balance	~~W~~	1,240,195			1,051,650
(*)	Includes assets acquired from the acquisition of SK m&service Co., Ltd. by PS&Marketing Corporation, a<br>subsidiary of the Parent Company for the nine-month period ended September 30, 2022.
---	---

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2023 and 2022 (Unaudited)

19.	Defined Benefit Liabilities (Assets), Continued
(4)	Total cost of defined benefit plan, which is recognized in profit or loss for the nine-month periods ended<br>September 30, 2023 and 2022, are as follows:
---	---
(In millions of won)	For the nine-month period ended
---	---	---	---	---	---
	September 30, 2023			September 30, 2022
Current service cost	~~W~~	98,891			101,989
Net interest cost (income)		(5,912	)		4
	~~W~~	92,979			101,993
20.	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 the details of share capital and capital surplus and others as of September 30, 2023 and December 31, 2022 are as follows:
---	---
(In millions of won, except for share data)
---	---	---	---	---	---	---
	September 30, 2023			December 31, 2022
Number of authorized shares		670,000,000			670,000,000
Number of issued shares		218,833,144			218,833,144
Share capital:
Common share(*1)	~~W~~	30,493			30,493
Capital surplus and others:
Paid-in surplus		1,771,000			1,771,000
Treasury shares		(115,349	)		(36,702	)
Hybrid bonds(*2)		398,509			398,759
Share option(Note 21)		3,096			2,061
Others(*3)		(13,705,843	)		(13,702,235	)
	~~W~~	(11,648,587	)		(11,567,117	)
(*1)	In 2002 and 2003, the Parent Company retired treasury shares with reduction of its retained earnings before<br>appropriation. As a result, the Parent Company’s issued shares have decreased without a change in share capital.
---	---
(*2)	As there is no contractual obligation to deliver financial assets to the holders of hybrid bonds, the Group<br>classified the hybrid bonds as equity. When in liquidation or bankruptcy, these hybrid bonds are senior only to common shares.
---	---
(*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, 2023 and 2022 (Unaudited)

20.	Share Capital and Capital Surplus and Others, Continued
(2)	There were no changes in share capital for the nine-month periods ended September 30, 2023 and 2022, and<br>details of shares outstanding as of September 30, 2023 and 2022 are as follows:
---	---
(In shares)	September 30, 2023						September 30, 2022
---	---	---	---	---	---	---	---	---	---	---	---	---
	Issuedshares		Treasuryshares		Outstandingshares		Issued shares		Treasuryshares		Outstandingshares
Shares outstanding		218,833,144		2,420,246		216,412,898		218,833,144		801,091		218,032,053
(3)	Details of treasury shares as of September 30, 2023 and December 31, 2022 are as follows:<br>
---	---
(In millions of won, except for share data)
---	---	---	---	---
	September 30, 2023		December 31, 2022
Number of shares(*)		2,420,246		801,091
Acquisition cost	~~W~~	115,349		36,702
(*)	The Parent Company distributed 441,087 treasury shares (acquisition cost: ~~W~~20,208 million) as<br>bonus payment to the employees, resulting in gain on disposal of treasury shares of ~~W~~212 million for the nine-month period ended September 30, 2023. Also, the Parent Company acquired 2,060,242 treasury shares (acquisition<br>cost: ~~W~~98,855 million) in an effort to increase shareholder value by stabilizing its stock price for the nine-month period ended September 30, 2023.
---	---

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2023 and 2022 (Unaudited)

21.	Share-based Payment Arrangement
(1)	The terms and conditions related to the grants of the share-based payment arrangement are as follows:<br>
---	---
1)	Share-based payment arrangement with cash alternatives
---	---
	Series
---	---	---	---	---	---
	1-3	3	4	5	6
Grant date	March 24, 2017	February 22, 2019	March 26, 2019	March 26, 2020	March 25, 2021
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)	67,320	8,907	5,266	376,313	87,794
Exercise price (in won)	57,562	53,052	50,862	38,452	50,276
Exercise period	Mar. 25, 2021<br> ~<br>Mar. 24, 2024	Feb. 23, 2021<br> <br>~<br><br><br>Feb. 22, 2024	Mar. 27, 2021<br> ~<br>Mar. 26, 2024	Mar. 27, 2023<br> ~<br>Mar. 26, 2027	Mar. 26, 2023<br> ~<br>Mar. 25, 2026
Vesting conditions	4 years’<br> <br>service from the<br>grant date	2 years’<br> <br>service from the<br>grant date	2 years’<br> <br>service from<br>the grant date	3 years’<br> <br>service from<br><br><br>the grant date	2 years’<br> <br>service from<br><br><br>the grant date
	Series
---	---	---	---
	7-1	7-2	8
Grant date	March 25, 2022	March 25, 2022	March 28, 2023
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)	295,275	109,704	190,000
Exercise price (in won)	56,860	56,860	47,280
Exercise period	Mar. 26, 2025<br> <br>~<br><br><br>Mar. 25, 2029	Mar. 26, 2024<br> <br>~<br><br><br>Mar. 25, 2027	Mar. 29, 2025<br> <br>~<br><br><br>Mar. 28, 2028
Vesting conditions	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
(*)	The remaining parts of 1-2st and 2nd share option were fully forfeited<br>for the nine-month period ended September 30, 2023.
---	---

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2023 and 2022 (Unaudited)

21.	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:
---	---
2)	Cash-settled share-based payment arrangement
---	---
	Granted in 2021		Granted in 2022
---	---	---	---
	Share appreciation rights of<br>SK Telecom Co., Ltd.	Share appreciation rights of<br>SK Square Co., Ltd.	Share appreciation rights of<br>SK Telecom Co., Ltd.
Grant date	January 1, 2021		January 1, 2022
Grant method	Cash settlement
Number of shares (in share)	183,246	118,456	338,525
Exercise price (in won)	50,276		56,860
Exercise period	Jan. 1, 2023 ~<br> <br>Mar. 28, 2024		Jan. 1, 2024 ~<br> <br>Mar. 25, 2025
Vesting conditions	2 years’ service<br>from the grant date		2 years’ service<br>from the grant date
(2)	Share compensation expense for share-based payment arrangements with cash alternatives recognized for the<br>nine-month period ended September 30, 2023 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, 2022	~~W~~	155,579
For the nine-month period ended September 30, 2023		2,380
In subsequent periods		2,053
	~~W~~	160,012

The liabilities recognized by the Parent Company in relation to the share-based payment arrangement with cash alternatives are ~~W~~6,875 million and ~~W~~4,221 million, respectively, which are included in accrued expenses as of September 30, 2023 and December 31, 2022.

As of September 30, 2023 and December 31, 2022, the carrying amounts of liabilities recognized by the Parent Company in relation to the cash-settled share-based payment arrangement are ~~W~~1,353 million and ~~W~~906 million, respectively.

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2022 and 2021 (Unaudited)

21.	Share-based Payment Arrangement, Continued
(3)	The Parent Company used binomial option pricing model in the measurement of the fair value of the share options<br>at grant date, and the inputs used in the model are as follows:
---	---
1)	Share-based payment arrangement with cash alternatives
---	---
(i)	SK Telecom Co., Ltd.
---	---
(In won)	Series
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	1-3			3			4			5			6
Risk-free interest rate		3.64	%		3.63	%		3.64	%		3.89	%		3.85	%
Estimated option’s life		7 years			5 years			5 years			7 years			5 years
Share price on the remeasurement date		52,000			52,000			52,000			52,000			52,000
Expected volatility		16.40	%		16.40	%		16.40	%		16.40	%		16.40	%
Expected dividends yield		6.30	%		6.30	%		6.30	%		6.30	%		6.30	%
Exercise price		57,562			53,052			50,862			38,452			50,276
Per-share fair value of the option		522			1,482			2,635			13,548			4,631
(In won)	Series
	7-1			7-2			8
Risk-free interest rate		3.92	%		3.89	%		3.90	%
Estimated option’s life		7 years			5 years			5 years
Share price on the remeasurement date		52,000			52,000			52,000
Expected volatility		16.40	%		16.40	%		16.40	%
Expected dividends yield		6.30	%		6.30	%		6.30	%
Exercise price		56,860			56,860			47,280
Per-share fair value of the option		3,391			2,827			6,471
(ii)	SK Square Co., Ltd.
---	---
(In won)	Series
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	1-3			3			4			5			6
Risk-free interest rate		2.07	%		1.91	%		1.78	%		1.52	%		1.55	%
Estimated option’s life		7 years			5 years			5 years			7 years			5 years
Share price<br>(Closing price on the preceding day)		52,500			51,800			50,600			34,900			49,800
Expected volatility		13.38	%		8.30	%		7.70	%		8.10	%		25.70	%
Expected dividends yield		3.80	%		3.80	%		3.90	%		5.70	%		4.00	%
Exercise price		57,562			53,052			50,862			38,452			50,276
Per-share fair value of the option		3,096			1,720			1,622			192			8,142

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2022 and 2021 (Unaudited)

21. Share-based Payment Arrangement, Continued

(3)	The Parent Company used binomial option pricing model in the measurement of the fair value of the share options<br>at grant date, and the inputs used in the model are as follows, Continued:
2)	Cash-settled share-based payment arrangement
---	---
(In won)	Granted in 2021						Granted in 2022
---	---	---	---	---	---	---	---	---	---
	Share appreciation rights of<br>SK Telecom Co., Ltd.			Share appreciation rights of<br>SK Square Co., Ltd.			Share appreciation rights of<br>SK Telecom Co., Ltd.
Risk-free interest rate		3.64	%		3.56	%		3.77	%
Estimated option’s life		3.25 years			3.25 years			3.25 years
Share price on the<br><br><br>remeasurement date		52,000			44,250			52,000
Expected volatility		16.40	%		31.60	%		16.40	%
Expected dividends yield		6.30	%		0.00	%		6.30	%
Exercise price		50,276			50,276			56,860
Per-share fair value of<br><br><br>the option		2,849			3,032			1,595

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2022 and 2021 (Unaudited)

22.	Retained Earnings

Retained earnings as of September 30, 2023 and December 31, 2022 are as follows:

(In millions of won)
	September 30, 2023		December 31, 2022
Appropriated:
Legal reserve	~~W~~	22,320		22,320
Reserve for business expansion		9,831,138		9,631,138
Reserve for technology development		4,565,300		4,365,300
		14,396,438		13,996,438
Unappropriated		8,409,875		8,444,953
	~~W~~	22,828,633		22,463,711
23.	Reserves
---	---
(1)	Details of reserves, net of taxes, as of September 30, 2023 and December 31, 2022 are as follows:<br>
---	---
(In millions of won)
---	---	---	---	---
	September 30, 2023		December 31, 2022
Valuation gain on FVOCI	~~W~~	51,485		173,281
Other comprehensive income of investments<br><br><br>in associates and joint ventures		240,868		173,477
Valuation gain on derivatives		3,235		14,463
Foreign currency translation differences for<br><br><br>foreign operations		43,495		30,012
	~~W~~	339,083		391,233
(2)	Changes in reserves for the nine-month periods ended September 30, 2023 and 2022 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 currencytranslationdifferences forforeign operations		Total
Balance as of January 1, 2022	~~W~~	633,240			53,770		33,918			14,310		735,238
Changes, net of taxes		(487,528	)		263,200		(9,971	)		55,063		(179,236	)
Balance as of September 30, 2022	~~W~~	145,712			316,970		23,947			69,373		556,002
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

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2022 and 2021 (Unaudited)

24.	Other Operating Expenses

Details of other operating expenses for the three and nine-month periods ended September 30, 2023 and 2022 are as follows:

(In millions of won)	2023					2022
	Three-monthperiod endedSeptember 30			Nine-monthperiod endedSeptember 30		Three-monthperiod endedSeptember 30		Nine-monthperiod endedSeptember 30
Communication	~~W~~	8,097			24,199		8,276		23,855
Utilities		143,427			374,644		111,308		294,560
Taxes and dues		(5,602	)		25,316		8,620		44,231
Repair		105,938			311,568		108,392		312,520
Research and development		90,489			251,970		84,631		251,373
Training		10,553			27,201		10,750		25,308
Bad debt for accounts receivable – trade		8,307			27,965		7,689		23,062
Travel		4,812			15,764		3,988		10,265
Supplies and others		28,756			90,946		25,301		77,307
	~~W~~	394,777			1,149,573		368,955		1,062,481
25.	Other Non-Operating Income and Expenses
---	---

Details of other non-operating income and expenses for the three and nine-month periods ended September 30, 2023 and 2022 are as follows:

(In millions of won)	2023				2022
	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~~	3,835		15,477		2,905		11,682
Others		4,758		13,445		6,242		22,078
	~~W~~	8,593		28,922		9,147		33,760
Other non-operating Expenses:
Loss on impairment of property and equipment and intangible assets	~~W~~	43		512		360		360
Loss on disposal of property and<br><br><br>equipment and intangible assets		1,860		4,869		2,423		6,279
Donations		1,796		12,462		1,124		11,285
Bad debt for accounts receivable – other		2,127		4,788		824		2,267
Others		1,548		4,647		3,593		12,081
	~~W~~	7,374		27,278		8,324		32,272

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2022 and 2021 (Unaudited)

26.	Finance Income and Costs
(1)	Details of finance income and costs for the three and nine-month periods ended September 30, 2023 and 2022<br>are as follows:
---	---
(In millions of won)	2023					2022
---	---	---	---	---	---	---	---	---	---	---
	Three-monthperiod endedSeptember 30			Nine-monthperiod endedSeptember 30		Three-monthperiod endedSeptember 30			Nine-monthperiod endedSeptember 30
Finance Income:
Interest income	~~W~~	16,411			48,679		14,467			35,739
Gain on sale of accounts receivable – other		—			—		—			1,043
Dividends		5,178			35,440		—			2,552
Gain on foreign currency transactions		3,732			14,436		7,668			15,613
Gain on foreign currency translations		1,702			3,069		(3,018	)		9,921
Gain relating to financial instruments<br><br><br>at FVTPL		(7,004	)		82,450		17,953			28,606
	~~W~~	20,019			184,074		37,070			93,474
(In millions of won)	2023					2022
	Three-monthperiod endedSeptember 30			Nine-monthperiod endedSeptember 30		Three-monthperiod endedSeptember 30			Nine-monthperiod endedSeptember 30
Finance Costs:
Interest expenses	~~W~~	97,600			286,516		75,625			225,426
Loss on sale of accounts receivable – other		14,101			48,595		15,206			23,212
Loss on foreign currency transactions		3,549			16,879		5,161			11,916
Loss on foreign currency translations		667			1,949		(1,866	)		9,463
Loss relating to financial instruments<br><br><br>at FVTPL		3			23,581		(4,063	)		14,471
	~~W~~	115,920			377,520		90,063			284,488
(2)	Details of interest income included in finance income for the three and nine-month periods ended<br>September 30, 2023 and 2022 are as follows:
---	---
(In millions of won)	2023				2022
---	---	---	---	---	---	---	---	---
	Three-monthperiod endedSeptember 30		Nine-monthperiod endedSeptember 30		Three-monthperiod endedSeptember 30		Nine-monthperiod endedSeptember 30
Interest income on cash equivalents and financial instruments	~~W~~	8,883		26,402		8,996		17,606
Interest income on loans and others		7,528		22,277		5,471		18,133
	~~W~~	16,411		48,679		14,467		35,739

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2022 and 2021 (Unaudited)

26.	Finance Income and Costs, Continued
(3)	Details of interest expenses included in finance costs for the three and nine-month periods ended<br>September 30, 2023 and 2022 are as follows:
---	---
(In millions of won)	2023				2022
---	---	---	---	---	---	---	---	---
	Three-monthperiod endedSeptember 30		Nine-monthperiod endedSeptember 30		Three-monthperiod endedSeptember 30		Nine-monthperiod endedSeptember 30
Interest expenses on borrowings	~~W~~	8,483		22,954		6,148		16,088
Interest expenses on debentures		61,514		179,261		55,970		162,406
Others		27,603		84,301		13,507		46,932
	~~W~~	97,600		286,516		75,625		225,426
(4)	Details of impairment losses for financial assets for the three and nine-month periods ended September 30,<br>2023 and 2022 are as follows:
---	---
(In millions of won)	2023				2022
---	---	---	---	---	---	---	---	---
	Three-monthperiod endedSeptember 30		Nine-monthperiod endedSeptember 30		Three-monthperiod endedSeptember 30		Nine-monthperiod endedSeptember 30
Accounts receivable – trade	~~W~~	8,307		27,965		7,689		23,062
Other receivables		2,127		4,788		824		2,267
	~~W~~	10,434		32,753		8,513		25,329
27.	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, 2022 and 2021 (Unaudited)

28.	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, 2023 and 2022 are<br>calculated as follows:
---	---
(In millions of won, except for share data and basic earnings per share)
---	---	---	---	---	---	---	---	---	---	---	---	---
	2023						2022
	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~~	297,923			917,612			234,628			699,743
Interest on hybrid bonds		(4,950	)		(12,333	)		(3,692	)		(11,075	)
Profit attributable to owners of the Parent Company on common shares		292,973			905,279			230,936			688,668
Weighted average number of common shares outstanding		217,694,070			218,138,543			218,032,053			217,981,832
Basic earnings per share (in won)	~~W~~	1,346			4,150			1,059			3,159
2)	The weighted average number of common shares outstanding for the three and nine-month periods ended<br>September 30, 2023 and 2022 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, 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
(In shares)	Number ofcommon shares				Weighted average number of<br>common shares
---	---	---	---	---	---	---	---	---	---	---
				Three-month periodended September 30				Nine-month periodended September 30
Issued shares as of January 1, 2022		218,833,144				218,833,144			218,833,144
Treasury shares as of January 1, 2022		(1,250,992	)			(1,250,992	)		(1,250,992	)
Disposal of treasury shares		449,901				449,901			399,680
		218,032,053				218,032,053			217,981,832

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2022 and 2021 (Unaudited)

28.	Earnings per Share, Continued
(2)	Diluted earnings per share
---	---
1)	Diluted earnings per share for the nine-month periods ended September 30, 2023 and 2022 are calculated as<br>follows:
---	---
(In millions of won, except for share data and diluted earnings per share)
---	---	---	---	---	---	---	---	---
	2023				2022
	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~~	292,973		905,279		230,936		688,668
Adjusted weighted average number of common shares outstanding		217,764,355		218,210,241		218,134,276		218,105,923
Diluted earnings per share (in won)	~~W~~	1,345		4,149		1,059		3,157
2)	The adjusted weighted average number of common shares outstanding for the three and nine-month periods ended<br>September 30, 2023 and 2022 is calculated as follows:
---	---
(In shares)
---	---	---	---	---	---	---	---	---	---
	2023					2022
	Three-monthperiod endedSeptember 30			Nine-monthperiod endedSeptember 30		Three-monthperiod endedSeptember 30		Nine-monthperiod endedSeptember 30
Outstanding shares as of January 1		218,032,053			218,032,053		217,582,152		217,582,152
Effect of treasury shares		(337,983	)		106,490		449,901		399,680
Effect of share option		70,285			71,698		102,223		124,091
Adjusted weighted average number of common shares outstanding		217,764,355			218,210,241		218,134,276		218,105,923

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2022 and 2021 (Unaudited)

29.	Categories of Financial Instruments
(1)	Financial assets by category as of September 30, 2023 and December 31, 2022 are as follows:<br>
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---	---	---
	September 30, 2023
	Financialassets at<br>FVTPL		Equityinstrumentsat FVOCI		Financial assets atamortized cost		Derivativeshedginginstrument		Total
Cash and cash equivalents	~~W~~	377,937		—		786,335		—		1,164,272
Financial instruments		291,215		—		140,079		—		431,294
Long-term investment securities(*)		363,082		1,267,011		—		—		1,630,093
Accounts receivable – trade		—		—		2,142,280		—		2,142,280
Loans and other receivables		264,662		—		880,438		—		1,145,100
Derivative financial assets		31,552		—		—		171,065		202,617
	~~W~~	1,328,448		1,267,011		3,949,132		171,065		6,715,656
(*)	The Group designated ~~W~~1,267,011million of equity instruments that are not held for trading as<br>financial assets at FVOCI.
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---	---	---
	December 31, 2022
	Financialassets at<br>FVTPL		Equityinstrumentsat FVOCI		Financial assets atamortized cost		Derivativeshedginginstrument		Total
Cash and cash equivalents	~~W~~	245,982		—		1,636,309		—		1,882,291
Financial instruments		148,365		—		89,240		—		237,605
Long-term investment securities(*)		221,139		1,189,597		—		—		1,410,736
Accounts receivable – trade		—		—		1,984,772		—		1,984,772
Loans and other receivables		332,669		—		909,003		—		1,241,672
Derivative financial assets		54,009		—		—		267,151		321,160
	~~W~~	1,002,164		1,189,597		4,619,324		267,151		7,078,236
(*)	The Group designated ~~W~~1,189,597 million of equity instruments that are not held for<br>trading as financial assets at FVOCI.
---	---

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2022 and 2021 (Unaudited)

29.	Categories of Financial Instruments, Continued
(2)	Financial liabilities by category as of September 30, 2023 and December 31, 2022 are as follows:<br>
---	---
(In millions of won)	September 30, 2023
---	---	---	---	---	---	---
	Financial liabilitiesat FVTPL		Financial liabilitiesat amortized cost		Total
Accounts payable – trade	~~W~~	—		127,581		127,581
Derivative financial liabilities		302,593		—		302,593
Borrowings		—		837,322		837,322
Debentures		—		7,931,058		7,931,058
Lease liabilities(*)		—		1,670,475		1,670,475
Accounts payable - other and others		—		4,339,650		4,339,650
	~~W~~	302,593		14,906,086		15,208,679
(In millions of won)	December 31, 2022
---	---	---	---	---	---	---
	Financial liabilitiesat FVTPL		Financial liabilitiesat amortized cost		Total
Accounts payable – trade	~~W~~	—		89,255		89,255
Derivative financial liabilities		302,593		—		302,593
Borrowings		—		936,110		936,110
Debentures		—		8,366,694		8,366,694
Lease liabilities(*)		—		1,782,057		1,782,057
Accounts payable - other and others		—		5,505,465		5,505,465
	~~W~~	302,593		16,679,581		16,982,174
(*)	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, 2022 and 2021 (Unaudited)

30.	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 and interest rates. The Group implements a risk management system to monitor and manage these specific risks.

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

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

The Group has currency risk 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 of 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, 2023 are as follows:

(In millions of won, thousands of foreign currencies)
				Liabilities
		Won equivalent		Foreign currencies		Won equivalent
	67,197	~~W~~	90,367		1,016,353	~~W~~	1,366,791
	6,145		8,737		—		—
Others	—		344		—		61
		~~W~~	99,448			~~W~~	1,366,852

All values are in US Dollars.

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

As of September 30, 2023, a hypothetical change in exchange rates by 10% would have increased (decreased) the Group’s profit before income tax as follows:

(In millions of won)
		If decreased by 10%
	5,921		(5,921	)
	874		(874	)
Others	28		(28	)
	6,823		(6,823	)

All values are in Euros.

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2022 and 2021 (Unaudited)

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

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

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

As of September 30, 2023, floating-rate borrowings and debentures amount to ~~W~~43,125 million and ~~W~~403,440 million, respectively, and the Group has entered into interest rate swaps to hedge interest rate risk related to the floating-rate borrowings amounting to ~~W~~3,125 million and debentures. Therefore, profit before income taxes for the nine-month period ended September 30, 2023 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 taxes for the nine-month period ended September 30, 2023 would change by ~~W~~300 million in relation to the floating-rate borrowings which have not entered into interest rate swaps.

As of September 30, 2023, the floating-rate long-term payables – other are ~~W~~1,289,416 million. If the interest rate increases (decreases) 1%p with all other variables held constant, profit before income taxes for the nine-month period ended September 30, 2023, would change by ~~W~~9,671 million in relation to the floating-rate long-term payables – other that are exposed to interest rate risk.

Interest rate benchmark reform and associated risks

A fundamental reform of major interest rate benchmarks is being undertaken globally, including the replacement of some interbank offered rates (“IBOR”) with alternative nearly risk-free rates (referred to as ‘IBOR reform’). The calculation of USD LIBOR which was previously used as the interest rate benchmark was suspended as of June 30, 2023. The alternative interest rate benchmark of USD LIBOR is the Secured Overnight Financing Rate (“SOFR”).

For financial instruments related to the suspended LIBOR calculation, the Group included fallback clauses or replaced LIBOR with alternative interest rates before the calculation is suspended. Meanwhile, in case of Korean CD rate, Korea Overnight Financing Repo Rate (“KOFR”) was selected as alternative interest rate benchmark, and Korea Securities Depository has begun disclosing the rate since November 26, 2021. KOFR is calculated using the overnight RP rate with government bonds and monetary stabilization bonds as collateral. However, unlike LIBOR, calculation of CD rate will not be suspended, thereby making it unclear when and how the transition to KOFR will take place.

Non-derivative financial liabilities

The Parent Company’s non-derivative financial liabilities subject to interest rate benchmark reform as of December 31, 2022 were floating-rate bonds indexed to USD LIBOR. As explained above, the Group completed discussion with the counterparty about including the fallback clauses as of September 30, 2023.

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2022 and 2021 (Unaudited)

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

Derivatives

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

2)	Credit risk

The maximum credit exposure as of September 30, 2023 and December 31, 2022 is as follows:

(In millions of won)
	September 30, 2023		December 31, 2022
Cash and cash equivalents	~~W~~	1,163,980		1,882,093
Financial instruments		431,294		237,605
Long-term investment securities		—		900
Accounts receivable – trade		2,142,280		1,984,772
Contract assets		132,268		132,221
Loans and other receivables		1,145,100		1,241,672
Derivative financial assets		202,617		321,160
	~~W~~	5,217,539		5,800,423

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

The Group establishes a loss allowance in respect of accounts receivable – trade. The main components of this allowance are a specific loss component that relates to individually significant exposures and a collective loss component established for groups of similar assets in respect of losses that are expected to occur. The collective loss allowance is determined based on historical data of collection statistics for similar financial assets. Also, the Group’s credit risk can arise from transactions with financial institutions related to its cash and cash equivalents, financial instruments and derivatives. To minimize such risk, the Group has a policy to deal only with financial institutions with high credit ratings. The amount of maximum exposure to credit risk of the Group is the carrying amount of financial assets as of September 30, 2023.

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2022 and 2021 (Unaudited)

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

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

Contractual maturities of financial liabilities as of September 30, 2023 are as follows:

(In millions of won)
	Carryingamount		Contractualcash flows		Less than1 year		1 - 5 years		More than5 years
Accounts payable – trade	~~W~~	127,581		127,581		127,581		—		—
Borrowings(*)		837,322		863,841		526,595		337,246		—
Debentures(*)		7,931,058		9,101,672		1,029,188		5,913,619		2,158,865
Lease liabilities		1,670,475		1,957,407		394,935		1,068,408		494,064
Accounts payable – other and others(*)		4,339,650		4,455,189		3,482,260		970,217		2,712
	~~W~~	14,906,086		16,505,690		5,560,559		8,289,490		2,655,641
(*)	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, 2023, periods in which cash flows from cash flow hedge derivatives are expected to occur are as follows:

(In millions of won)
	Carryingamount		Contractualcash flows		Less than 1year		1 – 5 years		More than5 years
Assets	~~W~~	171,065		187,062		36,078		150,984		—

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2022 and 2021 (Unaudited)

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

The Group manages its capital to ensure that it will be able to continue as a 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, 2022.

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

Debt-equity ratio as of September 30, 2023 and December 31, 2022 are as follows:

(In millions of won)
	September 30, 2023			December 31, 2022
Total liabilities	~~W~~	17,507,717			19,153,066
Total equity		12,371,550			12,155,196
Debt-equity ratios		141.52	%		157.57	%
(3)	Fair value
---	---

1) Fair value and carrying amount of financial assets and liabilities including fair value hierarchy as of September 30, 2023 are as follows:

(In millions of won)	September 30, 2023
	Carryingamount		Level 1		Level 2		Level 3		Total
Financial assets that are measured at fair value:
FVTPL	~~W~~	1,328,448		46,736		933,813		347,899		1,328,448
Derivative hedging instruments		171,065		—		171,065		—		171,065
FVOCI		1,267,011		1,021,506		—		245,505		1,267,011
	~~W~~	2,766,524		1,068,242		1,104,878		593,404		2,766,524
Financial liabilities that are measured at fair value:
FVTPL	~~W~~	302,593		—		—		302,593		302,593
Financial liabilities that are not measured at fair value:
Borrowings	~~W~~	837,322		—		822,928		—		822,928
Debentures		7,931,058		—		7,528,697		—		7,528,697
Long-term payables – other		1,254,322		—		1,271,404		—		1,271,404
	~~W~~	10,022,702		—		9,623,029		—		9,623,029

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2022 and 2021 (Unaudited)

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

2) Fair value and carrying amount of financial assets and liabilities including fair value hierarchy as of December 31, 2022 are as follows:

(In millions of won)	December 31, 2022
	Carryingamount		Level 1		Level 2		Level 3		Total
Financial assets that are measured at fair value:
FVTPL	~~W~~	1,002,164		44,431		727,014		230,719		1,002,164
Derivative hedging instruments		267,151		—		267,151		—		267,151
FVOCI		1,189,597		993,765		—		195,832		1,189,597
	~~W~~	2,458,912		1,038,196		994,165		426,551		2,458,912
Financial liabilities that are measured at fair value:
FVTPL	~~W~~	302,593		—		—		302,593		302,593
Financial liabilities that are not measured at fair value:
Borrowings	~~W~~	936,110		—		911,597		—		911,597
Debentures		8,366,694		—		7,813,420		—		7,813,420
Long-term payables – other		1,638,341		—		1,614,934		—		1,614,934
	~~W~~	10,941,145		—		10,339,951		—		10,339,951

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

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

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

Interest rates used by the Group for the fair value measurement as of September 30, 2023 are as follows:

	Interest rate
Derivative instruments	4.18% ~ 6.69%
Borrowings and debentures	4.11% ~ 4.65%
Long-term payables – other	4.04% ~ 4.52%

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2023 and 2022 (Unaudited)

30.	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<br>September 30, 2023. The changes of financial assets and liabilities classified as Level 3 for the nine-month period ended September 30, 2023 are as follows:
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	Balance as of<br>January 1, 2023			Loss			OCI		Acquisition		Disposal			Balance as of<br>September 30, 2023
Financial assets																****
FVTPL	~~W~~	230,719			(22,280	)		4,067		157,183		(21,790	)		347,899
FVOCI		195,832			—			6,358		43,315		—			245,505
	~~W~~	426,551			(22,280	)		10,425		200,498		(21,790	)		593,404
Financial liabilities																****
FVTPL	~~W~~	(302,593	)		—			—		—		—			(302,593	)
(4)	Enforceable master netting agreement or similar agreement
---	---

Carrying amounts of financial instruments recognized to which offset agreements are applicable as of September 30, 2023 and December 31, 2022 are as follows:

(In millions of won)	September 30, 2023
	Gross financialinstrumentsrecognized		Amount offset			Net financial instrumentspresented on the interimconsolidated statement offinancial position
Financial assets:
Accounts receivable – trade and others	~~W~~	246,425		(236,037	)		10,388
Financial liabilities:
Accounts payable – other and others	~~W~~	245,228		(236,037	)		9,191
(In millions of won)	December 31, 2022
	Gross financialinstrumentsrecognized		Amount offset			Net financial instrumentspresented on theconsolidated statement offinancial position
Financial assets:
Accounts receivable – trade and others	~~W~~	245,835		(236,921	)		8,914
Financial liabilities:
Accounts payable – other and others	~~W~~	244,509		(236,921	)		7,588

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2022 and 2021 (Unaudited)

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

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 who have substantial role and responsibility in planning, operations, and relevant controls of the business as key management. The compensation given to such key management for the three and nine-month periods ended September 30, 2023 and 2022 are as follows:

(In millions of won)	2023				2022
	Three-monthperiod endedSeptember 30		Nine-monthperiod endedSeptember 30		Three-monthperiod endedSeptember 30		Nine-monthperiod endedSeptember 30
Salaries	~~W~~	602		3,532		569		2,918
Defined benefits plan expenses		158		846		208		613
Share option		933		1,596		508		1,089
	~~W~~	1,693		5,974		1,285		4,620

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

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2022 and 2021 (Unaudited)

31.	Transactions with Related Parties, Continued
(3)	Transactions with related parties for the three and nine-month periods ended September 30, 2023 and 2022<br>are as follows:
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---	---	---	---	---	---
		For the period ended September 30, 2023
		Operating revenue andothers				*Operating expense andothers(1)**				Acquisition of propertyand equipment andothers
Scope	Company	Three-month		Nine-month		Three-month		Nine-month		Three-month		Nine-month
Ultimate Controlling Entity	SK Inc.(*2)	~~W~~	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 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, 2022 and 2021 (Unaudited)

31.	Transactions with Related Parties, Continued
(3)	Transactions with related parties for the three and nine-month periods ended September 30, 2023 and 2022<br>are as follows, Continued:
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---	---	---	---	---	---
		For the period ended September 30, 2022
		Operating revenue andothers				*Operating expense andothers(1)**				Acquisition of propertyand equipment andothers
Scope	Company	Three-month		Nine-month		Three-month		Nine-month		Three-month		Nine-month
Ultimate Controlling Entity	SK Inc.(*2)	~~W~~	5,696		15,695		152,902		499,682		13,139		28,831
Associates	F&U Credit information Co., Ltd.		730		2,220		12,206		36,718		157		157
	HanaCard Co., Ltd.(*3)		—		8,932		—		1,820		—		22
	Daehan Kanggun BcN Co., Ltd.		2,501		7,407		—		—		—		—
	Others(*4)		—		12,505		1,446		3,764		—		—
			3,231		31,064		13,652		42,302		157		179
Others	SK Innovation Co., Ltd.		8,337		17,625		4,879		14,124		—		—
	SK Networks Co., Ltd.(*5)		966		3,650		235,978		631,010		—		—
	SK Networks Service Co., Ltd.		1,178		4,156		18,365		52,192		775		1,634
	SK Energy Co., Ltd.		1,031		3,045		149		607		—		—
	Content Wavve Corp.		1,713		2,148		23,192		67,923		175		175
	SK Shieldus Co., Ltd.		9,022		22,526		38,275		116,332		9,349		15,847
	Eleven Street Co., Ltd.		15,132		30,645		3,892		16,878		—		—
	SK Planet Co., Ltd.		4,656		12,194		23,782		68,848		4,525		7,718
	SK hynix Inc.		16,518		39,422		152		204		—		—
	Dreamus Company		2,654		4,701		20,439		64,208		550		550
	One Store Co., Ltd.		4,359		12,643		9		15		—		—
	Tmap Mobility Co., Ltd.		5,792		16,304		1,186		3,755		548		548
	UNA Engineering Inc.<br><br><br>(Formerly, UbiNS Co., Ltd)		23		69		11,208		33,161		7,622		18,247
	SK Geo Centric Co., Ltd.		218		635		1		1		—		—
	SK Ecoplant Co., Ltd.		960		2,460		—		69		—		—
	SK RENT A CAR Co., Ltd.		5,062		10,785		3,932		11,637		—		—
	SK Magic Co., Ltd.		570		1,916		264		787		—		—
	Happy Narae Co., Ltd.		487		1,194		3,125		15,067		15,799		55,874
	Others		8,305		21,421		6,772		17,577		5,239		8,089
			86,983		207,539		395,600		1,114,395		44,582		108,682
		~~W~~	95,910		254,298		562,154		1,656,379		57,878		137,692
(*1)	Operating expenses and others include lease payments by the Group.
---	---
(*2)	Operating expenses and others include ~~W~~218,019 million of dividends paid by the Parent<br>Company.
---	---
(*3)	HanaCard Co., Ltd. was excluded from the related parties due to the disposal of shares for the nine-month<br>period ended September 30, 2022, and the transactions above occurred before the disposal.
---	---
(*4)	Operating revenue and others include ~~W~~12,410 million of dividends received from Korea IT<br>Fund which was deducted from the investment in associates.
---	---
(*5)	Operating expenses and others include costs for handset purchases amounting to<br>~~W~~589,882 million.
---	---

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2022 and 2021 (Unaudited)

31.	Transactions with Related Parties, Continued
(4)	Account balances with related parties as of September 30, 2023 and December 31, 2022 are as follows:<br>
---	---
(In millions of won)		September 30, 2023
---	---	---	---	---	---	---	---
		Receivables				Payables
Scope	Company	Loans		Accountsreceivable –trade, etc.		Accountspayable – other,etc.
Ultimate Controlling Entity	SK Inc.	~~W~~	—		1,105		42,505
Associates	F&U Credit information Co., Ltd.		—		186		4,813
	Wave City Development Co., Ltd.(*1)		—		901		—
	Daehan Kanggun BcN Co., Ltd.(*2)		22,148		2,718		—
	Others		—		3		1,494
			22,148		3,808		6,307
Others	SK Innovation Co., Ltd.		—		3,990		27,634
	SK Networks Co., Ltd.		—		482		143,894
	Mintit Co., Ltd.		—		6,667		10
	SK hynix Inc.		—		4,557		172
	Happy Narae Co., Ltd.		—		80		961
	SK Shieldus Co., Ltd.		—		12,911		32,420
	Content Wavve Corp.		—		1,570		7,670
	Incross Co., Ltd.		—		2,691		1,812
	Eleven Street Co., Ltd.		—		3,258		9,431
	SK Planet Co., Ltd.		—		11,059		19,483
	SK RENT A CAR Co., Ltd.		—		1,410		27,094
	UNA Engineering Inc. (Formerly, UbiNS Co., Ltd.)		—		—		6,331
	Others(*3)		—		10,390		37,975
			—		59,065		314,887
		~~W~~	22,148		63,978		363,699
(*1)	As of September 30, 2023, the Parent Company recognized loss allowance for the entire balance of accounts<br>receivable – trade.
---	---
(*2)	As of September 30, 2023, the Parent Company recognized loss allowance for the entire balance of loans to<br>Daehan Kanggun BcN Co., Ltd.
---	---
(*3)	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 of USD 13,000,000 with id Quantique SA, classified as other related party. SK Telecom Innovation Fund, L.P. acquired shares of id Quantique SA amounting to USD 26,731,250, including common shares<br>converted from the entire balance of loan for the nine-month period ended September 30, 2023.
---	---

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2022 and 2021 (Unaudited)

31. Transactions with Related Parties, Continued

(4)	Account balances with related parties as of September 30, 2023 and December 31, 2022 are as follows,<br>Continued:
(In millions of won)		December 31, 2022
---	---	---	---	---	---	---	---
		Receivables				Payables
Scope	Company	Loans		Accountsreceivable –trade, etc.		Accountspayable – other,etc.
Ultimate Controlling Entity	SK Inc.	~~W~~	—		2,383		103,141
Associates	F&U Credit information Co., Ltd.		—		64		5,682
	SK USA, Inc.		—		—		1,519
	Wave City Development Co., Ltd.(*1)		—		901		—
	Daehan Kanggun BcN Co., Ltd.(*2)		22,147		3,199		—
	Others		—		—		65
			22,147		4,164		7,266
Others	SK Innovation Co., Ltd.		—		9,726		33,091
	SK Networks Co., Ltd.		—		488		113,943
	Mintit Co., Ltd.		—		35,058		3
	SK hynix Inc.		—		15,494		311
	Happy Narae Co., Ltd.		—		31		31,979
	SK Shieldus Co., Ltd.		—		14,035		17,447
	Content Wavve Corp.		—		349		19,244
	Incross Co., Ltd.		—		3,774		16,152
	Eleven Street Co., Ltd.		—		6,797		13,026
	SK Planet Co., Ltd.		—		8,190		43,238
	SK RENT A CAR Co., Ltd.		—		1,291		22,895
	UNA Engineering Inc. (Formerly, UbiNS Co., Ltd.)		—		—		21,179
	Others(*3)		16,475		13,996		41,890
			16,475		109,229		374,398
		~~W~~	38,622		115,776		484,805
(*1)	As of December 31, 2022, the Parent Company recognized loss allowance amounting to<br>~~W~~379 million for accounts receivable – trade.
---	---
(*2)	As of December 31, 2022, the Parent Company recognized loss allowance for the entire balance of loans to<br>Daehan Kanggun BcN Co., Ltd.
---	---
(*3)	SK Telecom Innovation Fund, L.P., a subsidiary of the Parent Company, entered into a convertible loan agreement<br>for USD 13,000,000 with id Quantique SA, classified as other related party.
---	---
(5)	The Group has granted SK REIT Co., Ltd. the right of first offer regarding the disposal of real estate owned by<br>the Group. Whereby, the negotiation period is within 3 to 5 years from June 30, 2021, date of agreement, and the Group has been granted the right by SK REIT Co., Ltd. to lease the real estate in preference to a third party if SK REIT Co., Ltd.<br>purchases the real estate from the Group.
---	---
(6)	The details of new and disposed investments in associates and joint ventures for the nine-month period ended<br>September 30, 2023 are as presented in Note 11.
---	---

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2022 and 2021 (Unaudited)

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

SK Broadband Co., Ltd., a subsidiary of the Parent Company, has pledged its properties as collateral for leases on buildings in the amount of ~~W~~1,228 million as of September 30, 2023.

Meanwhile, PanAsia Semiconductor Materials LLC., a subsidiary of the Parent Company, has pledged its ~~W~~22,750 million of equity instruments at FVTPL on ~~W~~12,998 million of short-term borrowings as of September 30, 2023.

(2)	Legal claims and litigations

As of September 30, 2023, the Group is involved in various legal claims and litigation. Provision recognized in relation to these claims and litigation is immaterial. In connection with those legal claims and litigation for which no provision was recognized, management does not believe the Group has a present obligation, nor is it expected any of these claims or litigation will have a 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 sales of handsets amounting to ~~W~~282,702 million and ~~W~~357,467 million as of September 30, 2023 and December 31, 2022, 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, 2023 and 2022 (Unaudited)

32.	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. Before March 31, 2025, the Parent Company, HFG, and HanaCard Co., Ltd. may not dispose of shares they have acquired or will acquire under the aforementioned transaction.

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2023 and 2022 (Unaudited)

33.	Statements of Cash Flows
(1)	Adjustments for income and expenses from operating activities for the nine-month periods ended<br>September 30, 2023 and 2022 are as follows:
---	---
(In millions of won)	For the nine-month period ended
---	---	---	---	---	---	---
	September 30, 2023			September 30, 2022
Interest income	~~W~~	(48,679	)		(35,739	)
Dividends		(35,440	)		(2,552	)
Gain on foreign currency translations		(3,069	)		(9,921	)
Gain on sale of accounts receivable – other		—			(1,043	)
Loss (gain) relating to investments in associates<br><br><br>and joint ventures, net		(6,437	)		75,909
Gain on disposal of property and equipment<br><br><br>and intangible assets		(15,477	)		(11,682	)
Gain relating to financial instruments at FVTPL		(82,450	)		(28,606	)
Other income		(3,376	)		(5,191	)
Interest expenses		286,516			225,426
Loss on foreign currency translations		1,949			9,463
Loss on sale of accounts receivable – other		48,595			23,212
Income tax expense		312,289			368,036
Expense related to defined benefit plan		92,979			101,993
Share option		2,828			77,176
Bonus paid by treasury shares		20,420			24,007
Depreciation and amortization		2,810,381			2,820,490
Bad debt for accounts receivable – trade		27,965			23,062
Loss on impairment of property and equipment and intangible assets		512			360
Loss on disposal of property and equipment and intangible assets		4,869			6,279
Bad debt for accounts receivable – other		4,788			2,267
Loss relating to financial instruments at FVTPL		23,581			14,471
Other expenses		(918	)		17,324
	~~W~~	3,441,826			3,694,741

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2023 and 2022 (Unaudited)

33.	Statements of Cash Flows, Continued
(2)	Changes in assets and liabilities from operating activities for the nine-month periods ended September 30,<br>2023 and 2022 are as follows:
---	---
(In millions of won)	For the nine-month period ended
---	---	---	---	---	---	---
	September 30, 2023			September 30, 2022
Accounts receivable – trade	~~W~~	(182,814	)		(151,647	)
Accounts receivable – other		32,272			4,468
Advanced payments		17,040			(12,897	)
Prepaid expenses		(23,999	)		11,505
Inventories		(24,717	)		11,455
Long-term accounts receivable – other		44,933			76,925
Contract assets		(46	)		(15,205	)
Guarantee deposits		(5,385	)		3,117
Accounts payable – trade		37,645			(43,448	)
Accounts payable – other		(199,008	)		(79,083	)
Withholdings		123,890			108,661
Contract liabilities		(11,666	)		15,489
Deposits received		(1,841	)		225
Accrued expenses		3,417			77,167
Provisions		(318	)		(338	)
Long-term provisions		(1,057	)		(9,311	)
Plan assets		21,346			26,256
Retirement benefits payment		(66,839	)		(57,528	)
Others		(1,771	)		(3,120	)
	~~W~~	(238,918	)		(37,309	)
(3)	Significant non-cash transactions for the nine-month periods ended<br>September 30, 2023 and 2022 are as follows:
---	---
(In millions of won)	For the nine-month period ended
---	---	---	---	---	---	---
	September 30, 2023			September 30, 2022
Decrease in accounts payable – other relating to the acquisition of property and equipment<br>and intangible assets	~~W~~	(584,055	)		(654,993	)
Increase of<br>right-of-use assets		267,181			374,677
Transfer from property and equipment to investment property		13,213			4,892

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2023 and 2022 (Unaudited)

34.	Emissions Liabilities
(1)	The quantity of emissions rights allocated free of charge for each implementation year as of September 30,<br>2023 are as follows:
---	---
(In tCO2-eQ)
---	---	---	---	---	---	---	---	---	---	---	---	---
	Quantities<br>allocated<br>in 2021		Quantitiesallocated<br>in 2022		Quantitiesallocated<br>in 2023		Quantitiesallocated<br>In 2024		Quantitiesallocated<br>in 2025		Total
Emissions rights allocated free of charge(*)		1,385,433		1,602,751		1,443,977		1,300,465		1,300,465		7,033,091
(*)	The changes in quantity due to additional allocation, cancellation of allocation and others are considered.<br>
---	---
(2)	Changes in emissions rights quantities the Group held are as follows:
---	---
(In tCO2-eQ)
---	---	---	---	---	---	---	---	---	---	---	---	---
	Quantities<br>allocated in 2021			Quantitiesallocated in 2022			Quantities allocatedin the nine-month<br>period endedSeptember 30, 2023			Total
Beginning		—			—			306,575			306,575
Allocation at no cost		1,385,433			1,602,751			1,443,977			4,432,161
Purchase		—			213,609			—			213,609
Surrender or<br><br><br>shall be surrendered		(1,421,570	)		(1,515,595	)		(1,550,054	)		(4,487,219	)
Borrowed		36,137			5,810			—			41,947
Ending		—			306,575			200,498			507,073
(3)	As of September 30, 2023, the estimated annual greenhouse gas emissions quantities of the Group are<br>1,550,054 tCO2-eQ.
---	---
35.	Non-current Assets Held for Sale
---	---

The Group classified investments in associates and long-term investment securities scheduled to be liquidated as non-current assets held for sale as of September 30, 2023 and December 31, 2022, and the details are as follows:

(In millions of won)
		September 30, 2023		December 31, 2022
Investments in associates	Daekyo Wipoongdangdang<br>Contents Korea Fund	~~W~~	1,062		1,062
Long-term investment securities	Digital Content Korea Fund		3,395		3,645
	InterVest Fund		107		107
	Central Fusion Content Fund		883		1,563
		~~W~~	5,447		6,377

SK TELECOM CO., LTD. and its Subsidiaries

Notes to the Interim Consolidated Financial Statements

September 30, 2023 and 2022 (Unaudited)

36.	Subsequent Events

The Board of Directors of the Parent Company resolved to pay interim dividends at the Board of Directors’ meeting held on October 25, 2023, and the details are as follows:

Classification	Description
Interim dividend amount	~~W~~830 per share (Total amount: ~~W~~179,623 million)
Dividend rate	1.63%
Record date	September 30, 2023
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 15, 2023.

SK TELECOM CO., LTD.

Interim Separate Financial Statements

For the Nine-MonthPeriods ended September 30, 2023 and 2022

(With the Independent Auditor’s Review Report Thereon)

Contents

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

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

Report on review of interim separate financial statements

(English Translation of a Report Originally Issued in Korean)

The Shareholders and Board of Directors

SK TelecomCo., Ltd.

We have reviewed the accompanying interim separate financial statements of SK Telecom Co., Ltd. (the “Company”), which comprise the interim separate statement of financial position as of September 30, 2023, and the related interim separate statements of profit or loss, interim separate statements of comprehensive income for the three-month and nine-month periods ended September 30, 2023, and 2022, interim separate statements of changes in equity and interim separate statements of cash flows for the nine-month periods then ended, 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, 2022, and the related separate statement of profit or loss, separate statement of comprehensive income, separate statement of changes in equity and separate statement of cash flows for the year then ended (not presented herein) in accordance with KSA, and our report dated March 10, 2023 expressed an unqualified opinion thereon. The accompanying separate statement of financial position as of December 31, 2022, presented for comparative purposes, is not different, in all material respects, from the above audited separate statement of financial position.

November 10, 2023

This review report is effective as of November 10, 2023, the independent auditor’s review report date. Accordingly, certain material subsequent events<br>or circumstances may have occurred during the period from the independent auditor’s review report date to the time this review report is used. Such events and circumstances could significantly affect the accompanying interim separate financial<br>statements and may result in modification to this review report.

SK TELECOM CO., LTD.

INTERIM SEPARATE FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2023 AND DECEMBER 31, 2022 AND

FOR THE THREE-MONTH AND NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2023 AND 2022

“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, 2023 and December 31, 2022

(In millions of won)		September 30, 2023(Unaudited)		December 31,2022
Assets
Current Assets:
Cash and cash equivalents	27,28	~~W~~	350,106		1,217,504
Short-term financial instruments	27,28		335,228		169,829
Accounts receivable – trade, net	4,27,28,29		1,592,050		1,425,695
Short-term loans, net	4,27,28		73,832		70,043
Accounts receivable – other, net	4,27,28,29,30		370,557		435,096
Contract assets	6,28		10,525		12,100
Prepaid expenses	5		1,877,824		1,908,987
Guarantee deposits	4,27,28,29		63,583		63,516
Derivative financial assets	27,28		—		123,999
Inventories, net			40,388		23,355
Advanced payments and others	4,27,28		23,555		48,336
		****	4,737,648	****	5,498,460
Non-Current Assets:
Long-term financial instruments	27,28		354		354
Long-term investment securities	7,27,28,30		1,334,312		1,155,188
Investments in subsidiaries, associates and joint ventures	8		4,700,949		4,621,807
Property and equipment, net	9,11,29		8,864,988		9,519,663
Investment property, net	10		47,390		52,023
Goodwill			1,306,236		1,306,236
Intangible assets, net	12		2,284,747		2,693,400
Long-term loans, net	4,27,28,29		119		194
Long-term accounts receivable – other	4,27,28,30		337,686		377,858
Long-term contract assets	6,28		13,785		20,998
Long-term prepaid expenses	5		932,357		935,710
Guarantee deposits, net	4,27,28,29		102,193		92,019
Long-term derivative financial assets	27,28		167,644		126,737
Defined benefit assets	16		28,837		31,225
Other non-current assets			249		249
		****	20,121,846	****	20,933,661
Total Assets		~~W~~	24,859,494	****	26,432,121

(Continued)

SK TELECOM CO., LTD.

Interim Separate Statements of Financial Position, Continued

As of September 30, 2023 and December 31, 2022

(In millions of won)		September 30, 2023(Unaudited)			December 31,2022
Liabilities and Equity
Current Liabilities:
Accounts payable – other	27,28,29	~~W~~	1,593,366			2,334,484
Contract liabilities	6		59,539			80,654
Withholdings	27,28		722,923			604,681
Accrued expenses	27,28		898,727			871,095
Income tax payable	25		109,823			82,554
Provisions	15,32		30,813			31,651
Short-term borrowings	13,27,28		—			100,000
Current portion of long-term debt, net	13,27,28		889,844			1,383,097
Lease liabilities	27,28,29		345,313			337,320
Current portion of long-term payables – other	14,27,28		366,193			398,874
Other current liabilities	27,28		1,821			11,725
		****	5,018,362	****	****	6,236,135	****
Non-Current Liabilities:
Debentures, excluding current portion, net	13,27,28		6,000,660			5,705,873
Long-term borrowings, excluding current portion, net	13,27,28		260,000			640,000
Long-term payables – other	14,27,28		888,938			1,239,467
Long-term contract liabilities	6		9,979			12,745
Long-term derivative financial liabilities	27,28		302,593			302,593
Long-term lease liabilities	27,28,29		938,629			1,041,991
Long-term provisions	15		69,904			65,754
Deferred tax liabilities	25		740,281			754,321
Other non-current liabilities	27,28		57,679			49,860
		****	9,268,663	****	****	9,812,604	****
Total Liabilities		****	14,287,025	****	****	16,048,739	****
Shareholders’ Equity:
Share capital	1,17		30,493			30,493
Capital surplus and others	17,18		(4,586,946	)		(4,506,693	)
Retained earnings	19		15,092,059			14,691,461
Reserves	20		36,863			168,121
Total Shareholders’ Equity		****	10,572,469	****	****	10,383,382	****
Total Liabilities and Shareholders’ Equity		~~W~~	24,859,494	****	****	26,432,121	****

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

SK TELECOM CO., LTD.

Interim Separate Statements of Profit or Loss

For the three-month and nine-month periods ended September 30, 2023 and 2022

(In millions of won, except for earnings per share)			2023<br>(Unaudited)						2022<br>(Unaudited)
	Note		Three-monthperiod ended<br>September 30			Nine-monthperiod endedSeptember 30			Three-monthperiod endedSeptember 30			Nine-monthperiod endedSeptember 30
Operating revenue:		21,29
Revenue			~~W~~	3,148,447			9,384,930			3,122,638			9,318,263
Operating expenses:		29
Labor				229,040			678,471			214,680			744,241
Commission		5		1,191,309			3,568,613			1,193,380			3,525,752
Depreciation and amortization				669,718			2,022,304			672,910			2,021,953
Network interconnection				115,027			358,825			134,187			418,653
Leased lines				45,308			142,228			48,622			141,579
Advertising				35,234			98,135			30,611			82,434
Rent				34,688			98,429			30,945			86,881
Cost of goods sold				135,320			401,066			137,582			396,350
Others		22		285,692			814,977			271,029			773,904
				2,741,336			8,183,048			2,733,946			8,191,747
Operating profit			****	407,111	****	****	1,201,882	****	****	388,692	****	****	1,126,516	****
Finance income		24		16,496			312,339			28,720			97,118
Finance costs		24		(98,703	)		(323,516	)		(85,446	)		(225,012	)
Other non-operating income		23		7,405			21,324			6,824			26,126
Other non-operating expenses		23		(4,793	)		(20,276	)		(3,026	)		(22,921	)
Gain relating to investments in subsidiaries, associates and joint ventures, net		8		—			—			96,913			97,863
Profit before income tax			****	327,516	****	****	1,191,753	****	****	432,677	****	****	1,099,690	****
Income tax expense		25		77,102			246,385			127,534			318,067
Profit for the period			~~W~~	250,414	****	****	945,368	****	****	305,143	****	****	781,623	****
Earnings per share:		26
Basic earnings per share (in won)			~~W~~	1,128			4,277			1,383			3,535
Diluted earnings per share (in won)				1,127			4,276			1,382			3,533

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

SK TELECOM CO., LTD.

Interim Separate Statements of Comprehensive Income (Loss)

For the three-month and nine-month periods ended September 30, 2023 and 2022

(In millions of won) ****			2023<br>(Unaudited)						2022<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~~	250,414	****	****	945,368	****	****	305,143	****	****	781,623	****
Other comprehensive income (loss):
Items that will not be reclassified subsequently to profit or loss, net of taxes:
Remeasurement of defined benefit assets		16		5,313			12,135			4,431			23,639
Valuation loss on financial assets at fair value through other comprehensive income		20		(78,129	)		(123,614	)		(119,388	)		(488,209	)
Items that are or may be reclassified subsequently to profit or loss, net oftaxes:
Net change in unrealized fair value of derivatives		20		(3,976	)		(8,589	)		1,127			(2,746	)
Other comprehensive loss for period, net of taxes			****	(76,792	)	****	(120,068	)	****	(113,830	)	****	(467,316	)
Total comprehensive income			~~W~~	173,622	****	****	825,300	****	****	191,313	****	****	314,307	****

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, 2023 and 2022

(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, 2022			~~W~~	30,493	****	1,771,000	****	(57,314	)	****	398,759	****	****	47,166	****	****	(6,735,882	)	****	(4,576,271	)	****	14,770,618	****	****	638,016	****	****	10,862,856	****
Total comprehensive income:
Profit for the period				—		—		—			—			—			—			—			781,623			—			781,623
Other comprehensive<br><br><br>income (loss)		16,20		—		—		—			—			—			—			—			21,544			(488,860	)		(467,316	)
				—		—		—			—			—			—			—			803,167			(488,860	)		314,307
Transactions with owners:
Annual dividends				—		—		—			—			—			—			—			(361,186	)		—			(361,186	)
Interim dividends				—		—		—			—			—			—			—			(361,909	)		—			(361,909	)
Share option		18		—		—		—			—			48,481			28,395			76,876			—			—			76,876
Interest on hybrid bonds				—		—		—			—			—			—			—			(11,075	)		—			(11,075	)
Transactions of treasury shares		17,18		—		—		20,612			—			(92,234	)		67,523			(4,099	)		—			—			(4,099	)
				—		—		20,612			—			(43,753	)		95,918			72,777			(734,170	)		—			(661,393	)
Balance as of September 30, 2022 (Unaudited)			~~W~~	30,493	****	1,771,000	****	(36,702	)	****	398,759	****	****	3,413	****	****	(6,639,964	)	****	(4,503,494	)	****	14,839,615	****	****	149,156	****	****	10,515,770	****
Balance as of January 1, 2023			~~W~~	30,493	****	1,771,000	****	(36,702	)	****	398,759	****	****	2,061	****	****	(6,641,811	)	****	(4,506,693	)	****	14,691,461	****	****	168,121	****	****	10,383,382	****
Total comprehensive income:
Profit for the period				—		—		—			—			—			—			—			945,368			—			945,368
Other comprehensive<br><br><br>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	)
Repayments 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	****

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, 2023 and 2022

(In millions of won)		2023(Unaudited)			2022(Unaudited)
Cash flows from operating activities:
Cash generated from operating activities:
Profit for the period		~~W~~	945,368			781,623
Adjustments for income and expenses	31		2,451,710			2,632,344
Changes in assets and liabilities related to operating activities	31		(174,806	)		(111,573	)
			3,222,272			3,302,394
Interest received			21,425			18,086
Dividends received			200,406			49,637
Interest paid			(227,511	)		(162,505	)
Income tax paid			(192,685	)		(351,958	)
Net cash provided by operating activities		****	3,023,907	****	****	2,855,654	****
Cash flows from investing activities:
Cash inflows from investing activities:
Decrease in long-term financial instruments			—			222,432
Collection of short-term loans			96,162			88,389
Proceeds from disposals of long-term investment securities			9,720			54,386
Proceeds from disposals of investments in subsidiaries, associates and joint ventures			—			382,114
Proceeds from disposals of property and equipment			7,583			2,147
Proceeds from disposals of intangible assets			1,739			3,680
			115,204			753,148
Cash outflows for investing activities:
Increase in short-term financial instruments, net			(160,955	)		(160,901	)
Increase in long-term financial instruments			—			(330,032	)
Increase in short-term loans			(99,913	)		(93,673	)
Acquisitions of long-term investment securities			(284,145	)		(264,072	)
Acquisitions of investments in subsidiaries, associates and joint ventures			(79,142	)		(68,571	)
Acquisitions of property and equipment			(1,412,405	)		(1,646,867	)
Acquisitions of intangible assets			(19,969	)		(19,096	)
			(2,056,529	)		(2,583,212	)
Net cash used in investing activities		~~W~~	(1,941,325	)	****	(1,830,064	)

(Continued)

SK TELECOM CO., LTD.

Interim Separate Statements of Cash Flows, Continued

For the nine-month periods ended September 30, 2023 and 2022

(In millions of won)	2023(Unaudited)			2022(Unaudited)
Cash flows from financing activities:			****
Cash inflows from financing activities:
Proceeds from long-term borrowings	~~W~~	—			350,000
Proceeds from issuance of debentures		647,332			741,970
Cash inflows from settlement of derivatives		126,000			768
Proceeds from issuance of hybrid bonds		398,509			—
		1,171,841			1,092,738
Cash outflows for financing activities:
Repayments of short-term borrowings		(100,000	)		—
Repayments of long-term borrowings		—			(7,096	)
Repayments of long-term payables – other		(400,245	)		(400,245	)
Repayments of debentures		(1,309,000	)		(660,000	)
Payments of dividends		(543,601	)		(723,062	)
Repayments of hybrid bonds		(400,000	)		—
Payments of interest on hybrid bonds		(12,333	)		(11,075	)
Repayments of lease liabilities		(257,789	)		(251,120	)
Acquisition of treasury shares		(98,855	)		—
		(3,121,823	)		(2,052,598	)
Net cash used in financing activities	****	(1,949,982	)	****	(959,860	)
Net increase (decrease) in cash and cash equivalents	****	(867,400	)	****	65,730	****
Cash and cash equivalents at beginning of the period		1,217,504			158,823
Effects of exchange rate changes on cash and cash equivalents		2			2
Cash and cash equivalents at end of the period	~~W~~	350,106	****	****	224,555	****

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, 2023 and 2022 (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. Meanwhile, the Board of Directors of the Company resolved to cancel the listing of the Company’s DRs on the London Stock Exchange on June 22, 2023, and the DRs were delisted from the London Stock Exchange as of July 31, 2023. As of September 30, 2023, the Company’s total issued shares are held by the following shareholders:

	Number of shares
SK Inc.		65,668,397	30.01
National Pension Service		16,141,446	7.38
Institutional investors and other shareholders		130,756,568	59.74
Kakao Investment Co., Ltd.		3,846,487	1.76
Treasury shares		2,420,246	1.11
		218,833,144	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, 2022. 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, and an investor with joint control of or significant influence over an investee, in which the investments are accounted for at cost.

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2023 and 2022 (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, 2022.

2)	Fair value measurement

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

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

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

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

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

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

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2023 and 2022 (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, 2022, except for the adoption of new and revised KIFRS applied from January 1, 2023, 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.

•	Disclosure of Accounting Polices (Amendments to KIFRS 1001)
•	Disclosures of Profit or Loss on Financial Liabilities with Conditions for Adjusting an Exercise Price<br>(Amendments to KIFRS 1001)
---	---
•	Definition of Accounting Estimates (Amendments to KIFRS 1008)
---	---
•	Deferred Tax related to Assets and Liabilities Arising from a Single Transaction (Amendments to KIFRS 1012)<br>
---	---
•	KIFRS 1117 Insurance Contracts and its amendments
---	---

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2023 and 2022 (Unaudited)

4.	Trade and Other Receivables
(1)	Details of trade and other receivables as of September 30, 2023 and December 31, 2022 are as follows:<br>
---	---
(In millions of won)	September 30, 2023
---	---	---	---	---	---	---	---
	Grossamount		Lossallowance			Carryingamount
Current assets:
Accounts receivable – trade	~~W~~	1,690,724		(98,674	)		1,592,050
Short-term loans		74,578		(746	)		73,832
Accounts receivable – other(*)		400,417		(29,860	)		370,557
Guarantee deposits		63,583		—			63,583
Accrued income		2,801		—			2,801
		2,232,103		(129,280	)		2,102,823
Non-current assets:
Long-term loans		41,155		(41,036	)		119
Long-term accounts receivable – other(*)		337,686		—			337,686
Guarantee deposits		102,193		—			102,193
		481,034		(41,036	)		439,998
	~~W~~	2,713,137		(170,316	)		2,542,821
(*)	Gross and carrying amounts of accounts receivable – other as of September 30, 2023 include<br>~~W~~264,662 million of financial instruments classified as fair value through profit or loss (“FVTPL”).
---	---
(In millions of won)	December 31, 2022
---	---	---	---	---	---	---	---
	Grossamount		Lossallowance			Carryingamount
Current assets:
Accounts receivable – trade	~~W~~	1,511,926		(86,231	)		1,425,695
Short-term loans		70,751		(708	)		70,043
Accounts receivable – other(*)		467,800		(32,704	)		435,096
Guarantee deposits		63,516		—			63,516
Accrued income		1,168		—			1,168
		2,115,161		(119,643	)		1,995,518
Non-current assets:
Long-term loans		41,231		(41,037	)		194
Long-term accounts receivable – other(*)		377,858		—			377,858
Guarantee deposits		92,019		—			92,019
		511,108		(41,037	)		470,071
	~~W~~	2,626,269		(160,680	)		2,465,589
(*)	Gross and carrying amounts of accounts receivable – other as of December 31, 2022 include<br>~~W~~332,669 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, 2023 and 2022 (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, 2023 and 2022 are as follows:
---	---
(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
(In millions of won)
	January 1, 2022		Impairment		*Write-offs()**			Collection ofreceivablespreviouslywritten-off		September 30, 2022
Accounts receivable – trade	~~W~~	92,762		14,387		(17,349	)		7,092		96,892
Accounts receivable – other, etc.		76,856		1,543		(3,278	)		1,201		76,322
	~~W~~	169,618		15,930		(20,627	)		8,293		173,214
(*)	The Company writes off trade and other receivables that are determined to be uncollectable due to reasons such<br>as termination of operations or bankruptcy.
---	---
(3)	The Company applies the practical expedient that allows the Company to estimate the loss allowance for accounts<br>receivable – trade at an amount equal to the lifetime expected credit losses. The expected credit losses include the forward-looking information. To make the assessment, the Company uses its historical credit loss experience over the past three<br>years and classifies accounts receivable – trade by their credit risk characteristics and days overdue.
---	---

As the Company is a wireless telecommunications service provider, the Company’s financial assets measured at amortized cost primarily consist of receivables from numerous individual customers, 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, 2023 and 2022 (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, 2023 and December 31, 2022 are as follows:<br>
(In millions of won)
---	---	---	---	---
	September 30, 2023		December 31, 2022
Current assets:
Incremental costs of obtaining contracts	~~W~~	1,842,340		1,877,900
Others		35,484		31,087
	~~W~~	1,877,824		1,908,987
Non-current assets:
Incremental costs of obtaining contracts	~~W~~	898,645		904,746
Others		33,712		30,964
	~~W~~	932,357		935,710
(2)	Incremental costs of obtaining contracts
---	---

The amortization in connection with incremental costs of obtaining contracts recognized for the three and nine-month periods ended September 30, 2023 and 2022 are as follows:

(In millions of won)	2023				2022
	Three-monthperiod endedSeptember 30		Nine-monthperiod endedSeptember 30		Three-monthperiod endedSeptember 30		Nine-monthperiod endedSeptember 30
Amortization recognized	~~W~~	596,890		1,804,940		608,550		1,813,286

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2023 and 2022 (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, 2023 and December 31, 2022 are as<br>follows:
(In millions of won)
---	---	---	---	---
	September 30, 2023		December 31, 2022
Contract assets:
Allocation of consideration between performance obligations	~~W~~	24,310		33,098
Contract liabilities:
Wireless service contracts		19,127		18,544
Customer loyalty programs		6,440		7,706
Others		43,951		67,149
	~~W~~	69,518		93,399
(2)	The amount of revenue recognized for the nine-month periods ended September 30, 2023 and 2022 related to<br>the contract liabilities carried forward from the prior periods are ~~W~~57,979 million and ~~W~~46,120 million, respectively.
---	---

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2023 and 2022 (Unaudited)

7.	Long-term Investment Securities

Details of long-term investment securities as of September 30, 2023 and December 31, 2022 are as follows:

(In millions of won)
	Category	September 30, 2023		December 31, 2022
Equity instruments	FVOCI(*)	~~W~~	1,098,146		1,066,785
Debt instruments	FVTPL		236,166		88,403
		~~W~~	1,334,312		1,155,188
(*)	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, 2023 and December 31, 2022 are ~~W~~1,098,146 million and ~~W~~1,066,785 million, respectively.
---	---

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2023 and 2022 (Unaudited)

8.	Investments in Subsidiaries, Associates and Joint Ventures
(1)	Investments in subsidiaries, associates and joint ventures as of September 30, 2023 and December 31, 2022<br>are as follows:
---	---
(In millions of won)
---	---	---	---	---
	September 30, 2023		December 31, 2022
Investments in subsidiaries	~~W~~	3,264,770		3,200,863
Investments in associates and joint ventures		1,436,179		1,420,944
	~~W~~	4,700,949		4,621,807
(2)	Details of investments in subsidiaries as of September 30, 2023 and December 31, 2022 are as follows:<br>
---	---
(In millions of won, except for share data)
---	---	---	---	---	---	---	---	---
	September 30, 2023						December 31, 2022
	Number ofshares		Ownership<br>(%)		Carrying<br>amount		Carrying<br>amount
SK Telink Co., Ltd.		1,432,627		100.0	~~W~~	243,988		243,988
SK Broadband Co., Ltd.		299,052,435		74.4		2,215,427		2,215,427
SK Communications Co., Ltd.		43,427,530		100.0		24,927		24,927
PS&Marketing Corporation		66,000,000		100.0		313,934		313,934
SERVICE ACE Co., Ltd.		4,385,400		100.0		21,927		21,927
SK Telecom China Holdings Co., Ltd.		—		100.0		48,096		48,096
SK Telecom Americas, Inc.(*1)		122		100.0		70,269		31,203
Atlas Investment(*2)		—		100.0		184,232		159,631
SK stoa Co., Ltd.		3,631,355		100.0		40,029		40,029
Quantum Innovation Fund I(*3)		—		59.9		11,866		11,626
SAPEON Inc.		400,000		62.5		48,456		48,456
SK O&S Co., Ltd. and others		—		—		41,619		41,619
					~~W~~	3,264,770		3,200,863
(*1)	The Company additionally contributed ~~W~~39,066 million in cash for the nine-month period<br>ended September 30, 2023, but there is no change in the ownership interest.
---	---
(*2)	The Company additionally contributed ~~W~~24,601 million in cash for the nine-month period<br>ended September 30, 2023, but there is no change in the ownership interest.
---	---
(*3)	The Company additionally contributed ~~W~~240 million in cash for the nine-month period ended<br>September 30, 2023, but there is no change in the ownership interest.
---	---

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2023 and 2022 (Unaudited)

8.	Investments in Subsidiaries, Associates and Joint Ventures, Continued
(3)	Details of investments in associates and joint ventures as of September 30, 2023 and December 31,<br>2022 are as follows:
---	---
(In millions of won, except for share data)
---	---	---	---	---	---	---	---	---
	September 30, 2023						December 31, 2022
	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.		22,033,898		23.0		65,341		65,341
SK South East Asia Investment Pte. Ltd.		300,000,000		20.0		344,240		344,240
Citadel Pacific Telecom Holdings, LLC(*2)		1,734,109		15.0		36,487		36,487
Invites Healthcare Co., Ltd.(*3)		279,999		31.1		—		—
CMES Inc.(*2)		42,520		7.7		900		900
Konan Technology Inc.		1,179,580		20.8		22,413		22,413
12CM JAPAN and others(*2,4)		—		—		90,785		77,550
						1,428,179		1,414,944
Investments in joint ventures:
UTC Kakao-SK Telecom ESG Fund(*5,6)		—		48.2		8,000		6,000
						8,000		6,000
					~~W~~	1,436,179		1,420,944

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2023 and 2022 (Unaudited)

8.	Investments in Subsidiaries, Associates and Joint Ventures, Continued
(3)	Details of investments in associates and joint ventures as of September 30, 2023 and December 31, 2022 are<br>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)	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.
---	---
(*3)	The Company recognized the carrying amount of investments in Invites Healthcare Co., Ltd. in its entirety as an<br>impairment loss for the year ended December 31, 2022.
---	---
(*4)	The Company additionally contributed ~~W~~6,000 million of investment in KB ESG Fund of three<br>telecommunications companies and ~~W~~215 million of investment in KDX Korea Data Exchange for the nine-month period ended September 30, 2023. Also, the Company newly contributed ~~W~~6,500 million to Telecom<br>Daean Evaluation Co., Ltd. (tentative) and ~~W~~520 million to Covet Co., Ltd. obtained significant influence over the investee for the nine-month period ended September 30, 2023.
---	---
(*5)	The Company additionally contributed ~~W~~2,000 million in cash for the nine-month period<br>ended September 30, 2023, but there is no change in the ownership interest.
---	---
(*6)	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 value of investments in listed associates as of September 30, 2023 and December 31, 2022<br>are as follows:
---	---
(In millions of won, except for share data)
---	---	---	---	---	---	---	---	---	---	---	---	---
	September 30, 2023						December 31, 2022
	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~~	1,904		22,033,898		41,953		2,960		22,033,898		65,220
Konan Technology Inc.		78,000		1,179,580		92,007		28,250		1,179,580		33,323

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2023 and 2022 (Unaudited)

9.	Property and Equipment

Changes in property and equipment for the nine-month periods ended September 30, 2023 and 2022 are as follows:

(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
(In millions of won)
	For the nine-month period ended September 30, 2022
	Beginningbalance		Acquisition		Disposal			Transfer			Depreciation			Ending<br>balance
Land	~~W~~	621,614		—		(89	)		18,791			—			640,316
Buildings		564,976		287		(112	)		32,644			(31,019	)		566,776
Structures		290,813		150		(20	)		9,194			(28,605	)		271,532
Machinery		5,331,485		33,858		(35,860	)		1,066,611			(1,191,728	)		5,204,366
Right-of-use<br>assets		1,370,897		291,538		(28,753	)		(18,332	)		(263,321	)		1,352,029
Other		439,982		474,447		(513	)		(485,257	)		(60,306	)		368,353
Construction in progress		698,641		567,644		(1,709	)		(689,440	)		—			575,136
	~~W~~	9,318,408		1,367,924		(67,056	)		(65,789	)		(1,574,979	)		8,978,508

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2023 and 2022 (Unaudited)

10.	Investment Property
(1)	Changes in investment property for the nine-month periods ended September 30, 2023 and 2022 are as<br>follows:
---	---
(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
(In millions of won)
---	---	---	---	---	---	---	---	---	---	---
	For the nine-month period ended September 30, 2022
	Beginningbalance		Transfer			Depreciation			Endingbalance
Land	~~W~~	17,084		(410	)		—			16,674
Buildings		21,768		(653	)		(1,474	)		19,641
Right-of-use<br>assets		6,248		17,851			(5,649	)		18,450
	~~W~~	45,100		16,788			(7,123	)		54,765
(2)	The Company recognized lease income of ~~W~~17,044 million and<br>~~W~~16,841 million for the nine-month periods ended September 30, 2023 and 2022, respectively, from investment property.
---	---

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2023 and 2022 (Unaudited)

11.	Leases
(1)	Details of the right-of-use<br>assets as of September 30, 2023 and December 31, 2022 are as follows:
---	---
(In millions of won)
---	---	---	---	---
	September 30, 2023		December 31, 2022
Right-of-use<br>assets:
Land, buildings and structures	~~W~~	1,012,234		1,113,958
Others		262,023		258,508
	~~W~~	1,274,257		1,372,466
(2)	Details of amounts recognized in the interim separate statements of profit or loss for the nine-month periods<br>ended September 30, 2023 and 2022 as a lessee are as follows:
---	---
(In millions of won)
---	---	---	---	---
	For the nine-month period ended
	September 30, 2023		September 30, 2022
Depreciation of<br>right-of-use assets:
Land, buildings and structures	~~W~~	210,754		209,083
Others(*)		58,204		54,238
	~~W~~	268,958		263,321
Interest expense on lease liabilities	~~W~~	23,608		17,917
(*)	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 the Company recognized are immaterial.

(3)	The total cash outflows due to lease payments for the nine-month periods ended September 30, 2023 and 2022<br>amounted to ~~W~~281,572 million and ~~W~~269,169 million, respectively.

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2023 and 2022 (Unaudited)

12.	Intangible Assets
(1)	Changes in intangible assets for the nine-month periods ended September 30, 2023 and 2022 are as follows:<br>
---	---
(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
(In millions of won)
	For the nine-month period ended September 30, 2022
	Beginningbalance		Acquisition		Disposal			Transfer			Amortization			Ending<br>balance
Frequency usage rights	~~W~~	2,559,689		—		—			—			(357,585	)		2,202,104
Land usage rights		2,449		—		—			—			(1,053	)		1,396
Industrial rights		10,934		9,022		(683	)		(111	)		(3,251	)		15,911
Facility usage rights		14,355		907		(1	)		130			(2,080	)		13,311
Club memberships(*1)		51,356		832		(572	)		—			—			51,616
Other(*2)		564,547		8,335		(382	)		65,417			(176,967	)		460,950
	~~W~~	3,203,330		19,096		(1,638	)		65,436			(540,936	)		2,745,288
(*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, 2023 are as follows:
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---
	Amount		Description		Commencementof amortization		Completion ofamortization
800 MHz license	~~W~~	120,768		LTE service		Jul. 2021		Jun. 2026
1.8 GHz license		334,980		LTE service		Dec. 2021		Dec. 2026
2.6 GHz license		394,605		LTE service		Sept. 2016		Dec. 2026
2.1 GHz license		251,754		W-CDMA and LTE service		Dec. 2021		Dec. 2026
3.5 GHz license		622,264		5G service		Apr. 2019		Nov. 2028
	~~W~~	1,724,371
13.	Borrowings and Debentures
---	---
(1)	Short-term borrowings as of September 30, 2023 and December 31, 2022 are as follows:<br>
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---
Lender	Annual<br>interest rate (%)		Maturity		September 30, 2023		December 31, 2022
BNK Securities. Co.,Ltd.		—		—	~~W~~	—		100,000
					~~W~~	—		100,000

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2023 and 2022 (Unaudited)

13.	Borrowings and Debentures, Continued
(2)	There were no changes in long-term borrowings for the nine-month period ended September 30, 2023.<br>~~W~~380,000 million were reclassified from non-current to current for the nine-month period ended September 30, 2023.
---	---
(3)	Changes in debentures for the nine-month period ended September 30, 2023 are as follows:<br>
---	---
(In millions of won, thousands of other currencies)
---	---	---	---	---	---	---	---	---	---	---
	Purpose		Annual interestrate (%)		Maturity		Face value		Book value
Current							~~W~~	1,283,650		1,283,097
Non-current								5,722,110		5,705,873
As of January 1, 2023								7,005,760		6,988,970
Debentures newly issued:
Unsecured corporate bonds		Refinancing fund		3.65		Feb. 17, 2026		110,000		109,506
Unsecured corporate bonds		Refinancing fund		3.83		Feb. 17, 2028		190,000		189,224
Unsecured corporate bonds		Refinancing fund		3.72		Apr. 10, 2026		80,000		79,639
Unsecured corporate bonds		Refinancing fund		3.80		Apr. 12, 2028		200,000		199,226
Unsecured corporate bonds		Refinancing fund		3.96		Apr. 12, 2030		70,000		69,737
								650,000		647,332
Debentures repaid:
Unsecured corporate bonds		Operating fund		3.03		Apr. 23, 2023		(230,000		(230,000
Unsecured corporate bonds		Refinancing fund		2.81		Feb. 20, 2023		(100,000		(100,000
Unsecured corporate bonds		Operating and<br>refinancing fund		2.33		Sep. 17, 2023		(150,000		(150,000
Unsecured corporate bonds		Operating and<br>refinancing fund		1.64		Jan. 13, 2023		(170,000		(170,000
Unsecured global bonds								(659,000		(659,000
		Operating fund		3.75		Apr. 16, 2023		500,000		500,000
								(1,309,000		(1,309,000
Other changes(*1)								79,600		83,202
Current(*2)								410,000		409,844
Non-current(*2)								6,016,360		6,000,660
As of September 30, 2023							~~W~~	6,426,360		6,410,504

All values are in US Dollars.

(*1)	Other changes include the effects of foreign currency translation of debentures and amortization in discount on<br>issuance of debentures for the nine-month period ended September 30, 2023.
(*2)	~~W~~409,718 million were reclassified from<br>non-current to current for the nine-month period ended September 30, 2023.
---	---

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2023 and 2022 (Unaudited)

14.	Long-Term Payables – Other
(1)	As of September 30, 2023 and December 31, 2022, details of long-term payables – other related to the<br>acquisition of frequency usage rights are as follows (See note 12):
---	---
(In millions of won)
---	---	---	---	---	---	---
	September 30, 2023			December 31, 2022
Long-term payables – other	~~W~~	1,290,225			1,690,470
Present value discount on long-term payables – other		(35,094	)		(52,129	)
Current portion of long-term payables – other		(366,193	)		(398,874	)
Carrying amount at period end	~~W~~	888,938			1,239,467
(2)	The sum of portions repaid among the principal of long-term payables – other for the nine-month periods<br>ended September 30, 2023 and 2022 amounts to ~~W~~400,245 million and ~~W~~400,245 million, respectively. The repayment schedule of the principal amount of long-term payables – other as of<br>September 30, 2023 is as follows:
---	---
(In millions of won)
---	---	---
	Amount
Less than 1 year	~~W~~	369,150
1 ~ 3 years		738,300
3 ~ 5 years		182,775
	~~W~~	1,290,225
15.	Provisions
---	---
Changes	in provisions for the nine-month periods ended September 30, 2023 and 2022 are as follows:<br>
---	---
(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
(In millions of won)	For the nine-month period ended September 30, 2022												As of September 30, 2022
	Beginningbalance		Increase		Utilization			Reversal			Endingbalance		Current		Non-current
Provision for restoration	~~W~~	94,684		4,383		(3,641	)		(503	)		94,923		65,073		29,850
Emission allowance		1,885		1,934		—			(1,545	)		2,274		2,274		—
	~~W~~	96,569		6,317		(3,641	)		(2,048	)		97,197		67,347		29,850

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2023 and 2022 (Unaudited)

16.	Defined Benefit Assets
(1)	Details of defined benefit assets as of September 30, 2023 and December 31, 2022 are as follows:<br>
---	---
(In millions of won)
---	---	---	---	---	---	---
	September 30, 2023			December 31, 2022
Present value of defined benefit obligations	~~W~~	536,466			508,622
Fair value of plan assets		(565,303	)		(539,847	)
	~~W~~	(28,837	)		(31,225	)
(2)	Changes in present value of defined benefit obligations for the nine-month periods ended September 30,<br>2023 and 2022 are as follows:
---	---
(In millions of won)
---	---	---	---	---	---	---
	For the nine-month period ended
	September 30, 2023			September 30, 2022
Beginning balance	~~W~~	508,622			483,001
Current service cost		42,122			38,511
Interest cost		19,571			10,962
Remeasurement
- Demographic assumption		—			(5,672	)
- Financial assumption		—			(31,830	)
- Adjustment based on experience		(14,504	)		(2,984	)
Benefit paid		(22,480	)		(16,393	)
Others		3,135			1,074
Ending balance	~~W~~	536,466			476,669
(3)	Changes in fair value of plan assets for the nine-month periods ended September 30, 2023 and 2022 are as<br>follows:
---	---
(In millions of won)
---	---	---	---	---	---	---
	For the nine-month period ended
	September 30, 2023			September 30, 2022
Beginning balance	~~W~~	539,847			476,099
Interest income		20,577			11,044
Remeasurement		1,507			(8,063	)
Contribution		35,000			35,000
Benefit paid		(28,743	)		(25,638	)
Others		(2,885	)		52
Ending balance	~~W~~	565,303			488,494

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2023 and 2022 (Unaudited)

16.	Defined Benefit Assets, Continued
(4)	Total cost of defined benefit plan, which is recognized in profit or loss for the nine-month periods ended<br>September 30, 2023 and 2022 are as follows:
---	---
(In millions of won)
---	---	---	---	---	---	---
	For the nine-month period ended
	September 30, 2023			September 30, 2022
Current service cost	~~W~~	42,122			38,511
Net interest income		(1,006	)		(82	)
	~~W~~	41,116			38,429
17.	Share Capital and Capital Surplus and Others
---	---
(1)	The Company’s outstanding share capital consists of shares with a par value of ~~W~~100. The<br>number of authorized, issued and outstanding common shares and the details of share capital and capital surplus and others as of September 30, 2023 and December 31, 2022 are as follows:
---	---
(In millions of won, except for share data)
---	---	---	---	---	---	---
	September 30, 2023			December 31, 2022
Number of authorized shares		670,000,000			670,000,000
Number of issued shares		218,833,144			218,833,144
Share capital:
Common share(*1)	~~W~~	30,493			30,493
Capital surplus and others:
Paid-in surplus		1,771,000			1,771,000
Treasury shares		(115,349	)		(36,702	)
Hybrid bonds(*2)		398,509			398,759
Share option(Note 18)		3,096			2,061
Others		(6,644,202	)		(6,641,811	)
	~~W~~	(4,586,946	)		(4,506,693	)
(*1)	In 2002 and 2003, the Company retired treasury shares with reduction of its retained earnings before<br>appropriation. As a result, the Company’s issued shares have decreased without 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.
---	---

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2023 and 2022 (Unaudited)

17.	Share Capital and Capital Surplus and Others, Continued
(2)	There were no changes in share capital for the nine-month periods ended September 30, 2023 and 2022, and<br>details of shares outstanding as of September 30, 2023 and 2022 are as follows:
---	---
(In shares)
---	---	---	---	---	---	---	---	---	---	---	---	---
	September 30, 2023						September 30, 2022
	Issued shares		Treasuryshares		Outstandingshares		Issued shares		Treasuryshares		Outstandingshares
Shares outstanding		218,833,144		2,420,246		216,412,898		218,833,144		801,091		218,032,053
(3)	Details of treasury shares as of September 30, 2023 and December 31, 2022 are as follows:<br>
---	---
(In millions of won, except for share data)
---	---	---	---	---
	September 30, 2023		December 31, 2022
Number of shares(*)		2,420,246		801,091
Acquisition cost	~~W~~	115,349		36,702
(*)	The Company distributed 441,087 treasury shares (acquisition cost: ~~W~~20,208 million) as bonus<br>payment to the employees, resulting in gain on disposal of treasury shares of ~~W~~212 million for the nine-month period ended September 30, 2023. Also, the Company acquired 2,060,242 treasury shares (acquisition cost:<br>~~W~~98,855 million) in an effort to increase shareholder value by stabilizing its stock price for the nine-month period ended September 30, 2023.
---	---

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2023 and 2022 (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 arrangement with cash alternatives
---	---
	Series
---	---	---	---	---	---
	1-3	3	4	5	6
Grant date	March 24, 2017	February 22, 2019	March 26, 2019	March 26, 2020	March 25, 2021
Types of shares to be issued	Registered common shares
Grant method	Reissue of treasury shares,<br> <br>Cash settlement
Number of shares (in share)	67,320	8,907	5,266	376,313	87,794
Exercise price (in won)	57,562	53,052	50,862	38,452	50,276
Exercise period	Mar. 25, 2021	Feb. 23, 2021	Mar. 27, 2021	Mar. 27, 2023	Mar. 26, 2023
	~	~	~	~	~
	Mar. 24, 2024	Feb. 22, 2024	Mar. 26, 2024	Mar. 26, 2027	Mar. 25, 2026
Vesting conditions	4 years’<br> <br>service from<br>the grant date	2 years’<br> <br>service from<br>the grant date	2 years’<br> <br>service from<br>the grant date	3 years’<br> <br>service from<br><br><br>the grant date	2 years’<br> <br>service from<br><br><br>the grant date
	Series
---	---	---	---
	7-1	7-2	8
Grant date	March 25, 2022	March 25, 2022	March 28, 2023
Types of shares to be issued	Registered common shares
Grant method	Reissue of treasury shares,<br> <br>Cash settlement
Number of Shares (in share)	295,275	109,704	190,000
Exercise price (in won)	56,860	56,860	47,280
Exercise period	Mar. 26, 2025	Mar. 26, 2024	Mar. 29, 2025
	~	~	~
	Mar. 25, 2029	Mar. 25, 2027	Mar. 28, 2028
Vesting conditions	2 years’<br> <br>service from<br>the grant date	2 years’<br> <br>service from<br>the grant date	2 years’<br> <br>service from<br>the grant date
(*)	The remaining parts of 1-2st and 2nd share option were fully forfeited<br>for the nine-month period ended September 30, 2023.
---	---

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2023 and 2022 (Unaudited)

18.	Share-Based Payment Arrangement, Continued
(1)	The terms and conditions related to the grants of the share-based payment arrangement are as<br>follows, Continued:
---	---
2)	Cash-settled share-based payment arrangement
---	---
	Granted in 2021		Granted in 2022
---	---	---	---
	Share appreciation rights of<br>SK Telecom Co., Ltd.	Share appreciation rights of<br>SK Square Co., Ltd.	Share appreciation rights of<br>SK Telecom Co., Ltd.
Grant date	January 1, 2021		January 1, 2022
Grant method	Cash settlement
Number of shares (in share)	183,246	118,456	338,525
Exercise price (in won)	50,276		56,860
Exercise period	Jan. 1, 2023 ~ Mar. 28, 2024		Jan. 1, 2024 ~ Mar. 25, 2025
Vesting conditions	2 years’ service from the grant date		2 years’ service from the grant date
(2)	Share compensation expense for share-based payment arrangements with cash alternatives recognized for the<br>nine-month period ended September 30, 2023 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, 2022	~~W~~	155,579
For the nine-month period ended September 30, 2023		2,380
In subsequent periods		2,053
	~~W~~	160,012

The liabilities recognized by the Company in relation to the share-based payment arrangement with cash alternatives are ~~W~~6,875 million and ~~W~~4,221 million, respectively, which are included in accrued expenses as of September 30, 2023 and December 31, 2022.

As of September 30, 2023 and December 31, 2022, the carrying amount of liabilities recognized by the Company in relation to the cash-settled share-based payment arrangement are ~~W~~1,353 million and ~~W~~906 million, respectively.

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2023 and 2022 (Unaudited)

18.	Share-Based Payment Arrangement, Continued
(3)	The Company used binomial option-pricing model in the measurement of the fair value of share options at the<br>grant date, and the inputs used in the model are as follows:
---	---
1)	Share-based payment arrangement with cash alternatives
---	---
(i)	SK Telecom Co., Ltd.
---	---
(In won)	Series
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	1-3			3			4			5			6
Risk-free interest rate		3.64	%		3.63	%		3.64	%		3.89	%		3.85	%
Estimated option’s life		7 years			5 years			5 years			7 years			5 years
Share price on the remeasurement date		52,000			52,000			52,000			52,000			52,000
Expected volatility		16.40	%		16.40	%		16.40	%		16.40	%		16.40	%
Expected dividends yield		6.30	%		6.30	%		6.30	%		6.30	%		6.30	%
Exercise price		57,562			53,052			50,862			38,452			50,276
Per-share fair value of the option		522			1,482			2,635			13,548			4,631
(In won)	Series
---	---	---	---	---	---	---	---	---	---
	7-1			7-2			8
Risk-free interest rate		3.92	%		3.89	%		3.90	%
Estimated option’s life		7 years			5 years			5 years
Share price on the remeasurement date		52,000			52,000			52,000
Expected volatility		16.40	%		16.40	%		16.40	%
Expected dividends yield		6.30	%		6.30	%		6.30	%
Exercise price		56,860			56,860			47,280
Per-share fair value of the option		3,391			2,827			6,471
(ii)	SK Square Co., Ltd.
---	---
(In won)	Series
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	1-3			3			4			5			6
Risk-free interest rate		2.07	%		1.91	%		1.78	%		1.52	%		1.55	%
Estimated option’s life		7 years			5 years			5 years			7 years			5 years
Share price<br>(Closing price on the preceding day)		52,500			51,800			50,600			34,900			49,800
Expected volatility		13.38	%		8.30	%		7.70	%		8.10	%		25.70	%
Expected dividends yield		3.80	%		3.80	%		3.90	%		5.70	%		4.00	%
Exercise price		57,562			53,052			50,862			38,452			50,276
Per-share fair value of the option		3,096			1,720			1,622			192			8,142

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2023 and 2022 (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>grant date and the inputs used in the model are as follows, Continued:
---	---
2)	Cash-settled share-based payment arrangement
---	---
(In won)	Granted in 2021						Granted in 2022
---	---	---	---	---	---	---	---	---	---
	Share appreciation rights of<br>SK Telecom Co., Ltd.			Share appreciation rights of<br>SK Square Co., Ltd.			Share appreciation rights of<br>SK Telecom Co., Ltd.
Risk-free interest rate		3.64	%		3.56	%		3.77	%
Estimated option’s life		3.25 years			3.25 years			3.25 years
Share price on the remeasurement date		52,000			44,250			52,000
Expected volatility		16.40	%		31.60	%		16.40	%
Expected dividends yield		6.30	%		0.00	%		6.30	%
Exercise price		50,276			50,276			56,860
Per-share fair value of the option		2,849			3,032			1,595
19.	Retained Earnings
---	---

Retained earnings as of September 30, 2023 and December 31, 2022 are as follows:

(In millions of won)
	September 30, 2023		December 31, 2022
Appropriated:
Legal reserve	~~W~~	22,320		22,320
Reserve for business expansion		9,831,138		9,631,138
Reserve for technology development		4,565,300		4,365,300
		14,396,438		13,996,438
Unappropriated		673,301		672,703
	~~W~~	15,092,059		14,691,461

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2023 and 2022 (Unaudited)

20.	Reserves
(1)	Details of reserves, net of taxes, as of September 30, 2023 and December 31, 2022 are as follows:<br>
---	---
(In millions of won)
---	---	---	---	---
	September 30, 2023		December 31, 2022
Valuation gain on FVOCI	~~W~~	34,239		156,907
Valuation gain on derivatives		2,624		11,214
	~~W~~	36,863		168,121
(2)	Changes in reserves for the nine-month periods ended September 30, 2023 and 2022 are as follows:<br>
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---	---
	Valuation gain (loss) onfinancial assets at FVOCI			Valuation gain (loss)<br>on derivatives			Total
Balance at January 1, 2022	~~W~~	613,010			25,006			638,016
Changes, net of taxes		(486,114	)		(2,746	)		(488,860	)
Balance at September 30, 2022		126,896			22,260			149,156
Balance at January 1, 2023		156,907			11,214			168,121
Changes, net of taxes		(122,668	)		(8,590	)		(131,258	)
Balance at September 30, 2023	~~W~~	34,239			2,624			36,863

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2023 and 2022 (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 are as follows:

(In millions of won)	2023				2022
	Three-monthperiod ended<br>September 30		Nine-monthperiod endedSeptember 30		Three-monthperiod ended<br>September 30		Nine-monthperiod endedSeptember 30
Products transferred at a point in time:
Product sales	~~W~~	26,196		75,387		27,956		78,779
Services transferred over time:
Wireless service revenue(*1)		2,654,325		7,899,652		2,625,549		7,828,582
Cellular interconnection revenue		107,029		333,848		125,061		386,766
Other(*2)		360,897		1,076,043		344,072		1,024,136
		3,122,251		9,309,543		3,094,682		9,239,484
	~~W~~	3,148,447		9,384,930		3,122,638		9,318,263
(*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, 2023 and 2022 (Unaudited)

22.	Other Operating Expenses

Details of other operating expenses for the three and nine-month periods ended September 30, 2023 and 2022 are as follows:

(In millions of won)	2023				2022
	Three-monthperiod ended<br>September 30		Nine-monthperiod endedSeptember 30		Three-monthperiod ended<br>September 30		Nine-monthperiod endedSeptember 30
Communication	~~W~~	6,756		20,204		6,766		20,429
Utilities		104,699		274,882		82,348		221,694
Taxes and dues		220		22,374		6,495		32,144
Repair		63,326		182,611		67,155		184,434
Research and development		86,796		240,600		84,631		251,373
Training		8,036		20,040		8,295		18,220
Bad debt for accounts receivable – trade		6,205		20,884		4,868		14,387
Supplies and others		9,654		33,382		10,471		31,223
	~~W~~	285,692		814,977		271,029		773,904

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2023 and 2022 (Unaudited)

23.	Other Non-Operating Income and Expenses

Details of other non-operating income and expenses for the three and nine-month periods ended September 30, 2023 and 2022 are as follows:

(In millions of won)	2023				2022
	Three-monthperiod ended<br>September 30		Nine-monthperiod endedSeptember 30		Three-monthperiod ended<br>September 30			Nine-monthperiod endedSeptember 30
Other Non-operating Income:
Gain on disposal of property and equipment and intangible assets	~~W~~	4,508		15,035		2,728			9,900
Others		2,897		6,289		4,096			16,226
	~~W~~	7,405		21,324		6,824			26,126
Other Non-operating Expenses:
Loss on disposal of property and equipment and intangible assets	~~W~~	1,328		3,064		1,872			4,840
Donations		584		10,916		758			10,135
Bad debt for accounts receivable – other		2,103		3,976		431			1,543
Others		778		2,320		(35	)		6,403
	~~W~~	4,793		20,276		3,026			22,921

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2023 and 2022 (Unaudited)

24.	Finance Income and Costs
(1)	Details of finance income and costs for the three and nine-month periods ended September 30, 2023 and 2022<br>are as follows:
---	---
(In millions of won)	2023					2022
---	---	---	---	---	---	---	---	---	---
	Three-monthperiod ended<br>September 30			Nine-monthperiod endedSeptember 30		Three-monthperiod ended<br>September 30		Nine-monthperiod endedSeptember 30
Finance Income:
Interest income	~~W~~	7,701			25,288		7,716		20,776
Gain on sale of accounts receivable – other		—			—		—		1,043
Dividends		5,178			200,406		—		49,637
Gain on foreign currency transactions		3,073			7,063		3,699		6,337
Gain on foreign currency translations		429			805		199		924
Gain relating to financial instruments at FVTPL		115			78,777		17,106		18,401
	~~W~~	16,496			312,339		28,720		97,118
Finance Costs:
Interest expense	~~W~~	81,763			244,263		65,772		194,864
Loss on sale of accounts receivable – other		14,101			48,595		15,206		23,212
Loss on foreign currency transactions		2,893			6,873		4,036		6,284
Loss on foreign currency translations		(57	)		204		428		488
Loss relating to financial instruments at FVTPL		3			23,581		4		164
	~~W~~	98,703			323,516		85,446		225,012
(2)	Details of interest income included in finance income for the three and nine-month periods ended<br>September 30, 2023 and 2022 are as follows:
---	---
(In millions of won)	2023				2022
---	---	---	---	---	---	---	---	---
	Three-monthperiod ended<br>September 30		Nine-monthperiod endedSeptember 30		Three-monthperiod ended<br>September 30		Nine-monthperiod endedSeptember 30
Interest income on cash equivalents and short-term financial instruments	~~W~~	3,019		11,346		3,897		7,573
Interest income on loans and others		4,682		13,942		3,819		13,203
	~~W~~	7,701		25,288		7,716		20,776
(3)	Details of interest expenses included in finance costs for the three and nine-month periods ended<br>September 30, 2023 and 2022 are as follows:
---	---
(In millions of won)	2023				2022
---	---	---	---	---	---	---	---	---
	Three-monthperiod ended<br>September 30		Nine-monthperiod endedSeptember 30		Three-monthperiod ended<br>September 30		Nine-monthperiod endedSeptember 30
Interest expense on borrowings	~~W~~	7,634		21,088		5,630		14,293
Interest expense on debentures		49,594		150,234		47,396		136,347
Others		24,535		72,941		12,746		44,224
	~~W~~	81,763		244,263		65,772		194,864

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2023 and 2022 (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>2023 and 2022 are as follows:
---	---
(In millions of won)	2023				2022
---	---	---	---	---	---	---	---	---
	Three-monthperiod ended<br>September 30		Nine-monthperiod endedSeptember 30		Three-monthperiod ended<br>September 30		Nine-monthperiod endedSeptember 30
Accounts receivable – trade	~~W~~	6,205		20,884		4,868		14,387
Other receivables		2,103		3,976		431		1,543
	~~W~~	8,308		24,860		5,299		15,930
25.	Income Tax Expense
---	---

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2023 and 2022 (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, 2023 and 2022 are<br>calculated as follows:
---	---
(In millions of won, except for share data and basic earnings per share)
---	---	---	---	---	---	---	---	---	---	---	---	---
	2023						2022
	Three-monthperiod ended<br>September 30			Nine-monthperiod endedSeptember 30			Three-monthperiod ended<br>September 30			Nine-monthperiod endedSeptember 30
Profit for the period	~~W~~	250,414			945,368			305,143			781,623
Interest on hybrid bonds		(4,950	)		(12,333	)		(3,692	)		(11,075	)
Profit for the period on common shares		245,464			933,035			301,451			770,548
Weighted average number of common shares outstanding		217,694,070			218,138,543			218,032,053			217,981,832
Basic earnings per share (in won)	~~W~~	1,128			4,277			1,383			3,535
2)	The weighted average number of common shares outstanding for the three and nine-month periods ended<br>September 30, 2023 and 2022 are calculated as follows:
---	---
(In shares)				Weighted average number ofcommon shares
---	---	---	---	---	---	---	---	---	---
	Number of<br>common shares			Three-monthperiod ended<br>September 30			Nine-monthperiod endedSeptember 30
Issued shares as of January 1, 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
(In shares)				Weighted average number ofcommon shares
---	---	---	---	---	---	---	---	---	---
	Number of<br>common shares			Three-monthperiod ended<br>September 30			Nine-monthperiod endedSeptember 30
Issued shares as of January 1, 2022		218,833,144			218,833,144			218,833,144
Treasury shares as of January 1, 2022		(1,250,992	)		(1,250,992	)		(1,250,992	)
Disposal of treasury shares		449,901			449,901			399,680
		218,032,053			218,032,053			217,981,832

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2023 and 2022 (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, 2023 and 2022 are<br>calculated as follows:
---	---
(In millions of won, except for share data and diluted earnings per share)
---	---	---	---	---	---	---	---	---
	2023				2022
	Three-monthperiod ended<br>September 30		Nine-monthperiod endedSeptember 30		Three-monthperiod ended<br>September 30		Nine-monthperiod endedSeptember 30
Profit for the period on common shares	~~W~~	245,464		933,035		301,451		770,548
Adjusted weighted average number of common shares outstanding		217,764,355		218,210,241		218,134,276		218,105,923
Diluted earnings per share (in won)	~~W~~	1,127		4,276		1,382		3,533
2)	The adjusted weighted average number of common shares outstanding for the three and nine-month periods ended<br>September 30, 2023 and 2022 is calculated as follows:
---	---
(In shares)	2023
---	---	---	---	---	---
	Three-month period<br>ended 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
(In shares)	2022
---	---	---	---	---
	Three-month period<br>ended September 30		Nine-month periodended September 30
Outstanding shares as of January 1, 2022		217,582,152		217,582,152
Effect of treasury shares		449,901		399,680
Effect of share option		102,223		124,091
Adjusted weighted average number of common shares outstanding		218,134,276		218,105,923

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2023 and 2022 (Unaudited)

27.	Categories of Financial Instruments
(1)	Financial assets by category as of September 30, 2023 and December 31, 2022 are as follows:<br>
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---	---	---
	September 30, 2023
	Financialassets atFVTPL		Equityinstruments atFVOCI		Financial<br>assets atamortized cost		Derivativeshedginginstrument		Total
Cash and cash equivalents	~~W~~	1,579		—		348,527		—		350,106
Financial instruments		256,214		—		79,368		—		335,582
Long-term investment securities(*)		236,166		1,098,146		—		—		1,334,312
Accounts receivable – trade		—		—		1,592,050		—		1,592,050
Loans and other receivables		264,662		—		685,396		—		950,058
Derivative financial assets		6,896		—		—		160,748		167,644
	~~W~~	765,517		1,098,146		2,705,341		160,748		4,729,752
(*)	The Company designated ~~W~~1,098,146 million of equity instruments that are not held for<br>trading as financial assets at FVOCI.
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---	---	---
	December 31, 2022
	Financialassets atFVTPL		Equityinstruments atFVOCI		Financial<br>assets atamortized cost		Derivativeshedginginstrument		Total
Cash and cash equivalents	~~W~~	1,390		—		1,216,114		—		1,217,504
Financial instruments		90,815		—		79,368		—		170,183
Long-term investment securities(*)		88,403		1,066,785		—		—		1,155,188
Accounts receivable – trade		—		—		1,425,695		—		1,425,695
Loans and other receivables		332,669		—		707,225		—		1,039,894
Derivative financial assets		28,114		—		—		222,622		250,736
	~~W~~	541,391		1,066,785		3,428,402		222,622		5,259,200
(*)	The Company designated ~~W~~1,066,785 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, 2023 and 2022 (Unaudited)

27.	Categories of Financial Instruments, Continued
(2)	Financial liabilities by category as of September 30, 2023 and December 31, 2022 are as follows:<br>
---	---
(In millions of won)
---	---	---	---	---	---	---
	September 30, 2023
	Financial liabilities atFVTPL		Financial liabilities atamortized cost		Total
Derivative financial liabilities	~~W~~	302,593		—		302,593
Borrowings		—		740,000		740,000
Debentures		—		6,410,504		6,410,504
Lease liabilities(*)		—		1,283,942		1,283,942
Accounts payable – other and others		—		3,923,444		3,923,444
	~~W~~	302,593		12,357,890		12,660,483
(In millions of won)
---	---	---	---	---	---	---
	December 31, 2022
	Financial liabilities atFVTPL		Financial liabilities atamortized cost		Total
Derivative financial liabilities	~~W~~	302,593		—		302,593
Borrowings		—		840,000		840,000
Debentures		—		6,988,970		6,988,970
Lease liabilities(*)		—		1,379,311		1,379,311
Accounts payable – other and others		—		5,009,512		5,009,512
	~~W~~	302,593		14,217,793		14,520,386
(*)	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, 2023 and 2022 (Unaudited)

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

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

The Company’s financial assets consist of cash and cash equivalents, financial instruments, 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, 2023 are as follows:

(In millions of won, thousands of foreign currencies)
				Liabilities
		Won equivalent		Foreign currencies		Won equivalent
	21,353	~~W~~	28,716		699,435	~~W~~	940,600
	1,408		2,002		—		—
Others	—		344		—		—
		~~W~~	31,062			~~W~~	940,600

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, 2023, a hypothetical change in exchange rates by 10% would have increased (decreased) the Company’s profit before income tax as follows:

(In millions of won)
		If decreased by 10%
	2,567		(2,567	)
	200		(200	)
Others	34		(34	)
	2,801		(2,801	)

All values are in Euros.

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2023 and 2022 (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, 2023, floating-rate borrowings and debentures amount to ~~W~~40,000 million and ~~W~~403,440 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 taxes for the nine-month period ended September 30, 2023 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 taxes for the nine-month period ended September 30, 2023, would change by ~~W~~300 million in relation to the floating-rate borrowings which have not entered into interest rate swaps.

As of September 30, 2023, the floating-rate long-term payables – other are ~~W~~1,290,225 million. If the interest rate increases (decreases) 1%p with all other variables held constant, profit before income taxes for the nine-month period ended September 30, 2023, would change by ~~W~~9,677 million in relation to the floating-rate long-term payables – other that are exposed to interest rate risk.

Interest rate benchmark reform and associated risks

A fundamental reform of major interest rate benchmarks is being undertaken globally, including the replacement of some interbank offered rates (“IBOR”) with alternative nearly risk-free rates (referred to as ‘IBOR reform’). The calculation of USD LIBOR which was previously used as the interest rate benchmark was suspended as of June 30, 2023. The alternative interest rate of USD LIBOR is the Secured Overnight Financing Rate (“SOFR”).

The Company included fallback clauses into financial instruments relating to LIBOR to which calculation had not been suspended yet or changed their LIBOR directly to alternative interest rates before the calculation is suspended.

Non-derivative financial liabilities

The Company’s non-derivative financial liabilities subject to interest rate benchmark reform as of December 31, 2022 were floating-rate bonds indexed to USD LIBOR. As explained above, the Company completed discussion with the counterparty about including the fallback clauses as of September 30, 2023.

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2023 and 2022 (Unaudited)

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

Derivatives

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

2)	Credit risk

The maximum credit exposure as of September 30, 2023 and December 31, 2022 is as follows:

(In millions of won)
	September 30, 2023		December 31, 2022
Cash and cash equivalents	~~W~~	350,032		1,217,467
Financial instruments		335,582		170,183
Long-term investment securities		—		900
Accounts receivable – trade		1,592,050		1,425,695
Contract assets		24,310		33,098
Loans and other receivables		950,058		1,039,894
Derivative financial assets		167,644		250,736
	~~W~~	3,419,676		4,137,973

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 financial asset’s carrying amounts as of September 30, 2023.

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2023 and 2022 (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, 2023 are as follows:

(In millions of won)
	Carryingamount		Contractualcash flows		Less than<br>1 year		1 - 5<br>years		More than<br>5 years
Borrowings(*)	~~W~~	740,000		760,836		495,045		265,791		—
Debentures(*)		6,410,504		7,412,336		625,276		4,683,307		2,103,753
Lease liabilities		1,283,942		1,401,166		349,304		876,381		175,481
Accounts payable – other and others(*)		3,923,444		4,038,877		3,043,141		995,736		—
	~~W~~	12,357,890		13,613,215		4,512,766		6,821,215		2,279,234
(*)	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, 2023, periods in which cash flows from cash flow hedge derivatives are expected to occur are as follows:

(In millions of won)
	Carryingamount		Contractualcash flows		Less than<br>1 year		1 - 5<br>years		More than<br>5 years
Assets	~~W~~	160,748		176,745		36,064		140,681		—
(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, 2022.

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

Debt-equity ratio as of September 30, 2023 and December 31, 2022 are as follows:

(In millions of won)
	September 30, 2023			December 31, 2022
Total liabilities	~~W~~	14,287,025			16,048,739
Total equity		10,572,469			10,383,382
Debt-equity ratios		135.13	%		154.56	%

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2023 and 2022 (Unaudited)

28.	Financial Risk Management, Continued
(3)	Fair value
---	---
1)	Fair value and carrying amount of financial assets and liabilities including fair value hierarchy as of<br>September 30, 2023 and December 31, 2022 are as follows:
---	---
(In millions of won)	September 30, 2023
---	---	---	---	---	---	---	---	---	---	---
	Carryingamount		Level 1		Level 2		Level 3		Total
Financial assets that are measured at fair value:
FVTPL	~~W~~	765,517		—		522,456		243,061		765,517
Derivative hedging instruments		160,748		—		160,748		—		160,748
FVOCI		1,098,146		1,018,426		—		79,720		1,098,146
	~~W~~	2,024,411		1,018,426		683,204		322,781		2,024,411
Financial liabilities that are measured at fair value:
Derivative financial liabilities	~~W~~	302,593		—		—		302,593		302,593
Financial liabilities that are not measured at fair value:
Borrowings	~~W~~	740,000		—		732,723		—		732,723
Debentures		6,410,504		—		6,037,071		—		6,037,071
Long-term payables – other		1,255,131		—		1,271,404		—		1,271,404
	~~W~~	8,405,635		—		8,041,198		—		8,041,198
(In millions of won)	December 31, 2022
	Carryingamount		Level 1		Level 2		Level 3		Total
Financial assets that are measured at fair value:
FVTPL	~~W~~	541,391		—		424,876		116,515		541,391
Derivative hedging instruments		222,622		—		222,622		—		222,622
FVOCI		1,066,785		987,065		—		79,720		1,066,785
	~~W~~	1,830,798		987,065		647,498		196,235		1,830,798
Financial liabilities that are measured at fair value:
Derivative financial liabilities	~~W~~	302,593		—		—		302,593		302,593
Financial liabilities that are not measured at fair value:
Borrowings	~~W~~	840,000		—		817,771		—		817,771
Debentures		6,988,970		—		6,488,453		—		6,488,453
Long-term payables – other		1,638,341		—		1,614,934		—		1,614,934
	~~W~~	9,467,311		—		8,921,158		—		8,921,158

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2023 and 2022 (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, 2023 and December 31, 2022 are as follows, Continued:
---	---

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

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

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

Interest rates used by the Company for the fair value measurement as of September 30, 2023 are as follows:

	Interest rate
Derivative instruments		4.18% ~ 5.68%
Borrowings and debentures		4.11% ~ 4.60%
Long-term payables – other		4.04% ~ 4.52%
2)	There have been no transfers between Level 1 and Level 2 for the<br>nine-month period ended September 30, 2023. The changes of financial assets and liabilities classified as Level 3 for the nine-month period ended September 30, 2023 are as follows:
---	---
(In millions of won)
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	Balance as of<br>January 1, 2023			Loss			Acquisition		Disposal			Balance as of<br>September 30, 2023
Financial assets:														****
FVTPL	~~W~~	116,515			(23,065	)		152,110		(2,499	)		243,061
FVOCI		79,720			—			—		—			79,720
	~~W~~	196,235			(23,065	)		152,110		(2,499	)		322,781
Financial liabilities:														****
FVTPL	~~W~~	(302,593	)		—			—		—			(302,593	)

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

Carrying amount of financial instruments recognized to which offset agreements are applicable as of September 30, 2023 and December 31, 2022 are as follows:

(In millions of won)
	September 30, 2023
	Gross financialinstruments recognized		Amount offset			Net financial instrumentspresented on the interimseparate statement offinancial position
Financial assets:
Accounts receivable – trade and others	~~W~~	70,079		(70,079	)		—
Financial liabilities:
Accounts payable – other and others	~~W~~	71,722		(70,079	)		1,643
(In millions of won)
	December 31, 2022
	Gross financialinstruments recognized		Amount offset			Net financial instrumentspresented on theseparate statement offinancial position
Financial assets:
Accounts receivable – trade and others	~~W~~	82,987		(82,987	)		—
Financial liabilities:
Accounts payable – other and others	~~W~~	85,955		(82,987	)		2,968

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2023 and 2022 (Unaudited)

29.	Transactions with Related Parties
(1)	List of related parties
---	---
Relationship	Company
---	---
Ultimate Controlling Entity	SK Inc.
Subsidiaries	SK Broadband Co., Ltd. and 26 others(*)
Joint venture	UTC Kakao-SK Telecom ESG Fund
Associates	SK China Company Ltd. and 44 others
Others	The Ultimate Controlling Entity’s subsidiaries and associates and others
(*)	As of September 30, 2023, subsidiaries of the Company are as follows:
---	---
Subsidiary		*Ownershippercentage(%)(1)**		Primary business
---	---	---	---	---
Subsidiaries owned by the Company	SK Telink Co., Ltd.		100.0	International telecommunication and Mobile 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
	Quantum Innovation Fund I		59.9	Investment
	SK Telecom Japan Inc.		100.0	Information gathering and consulting
	Happy Hanool Co., Ltd.		100.0	Service
	SK stoa Co., Ltd.		100.0	Other telecommunication retail business
	SAPEON Inc.		62.5	Manufacturing non-memory and other electronic integrated circuits
Subsidiaries owned by SK Broadband Co., Ltd.	Home & Service Co., Ltd.		100.0	Operation of information and communication facility
	Media S Co., Ltd.		100.0	Production and supply services of broadcasting programs
Subsidiary owned by PS&Marketing Corporation	SK m&service Co., Ltd.		100.0	Database and Internet website service
Subsidiary owned by Quantum Innovation Fund I	PanAsia Semiconductor Materials LLC.		66.4	Investment
Subsidiary owned by SK Telecom Japan Inc.	SK Planet Japan, K. K.		79.8	Digital contents sourcing service
Subsidiary owned by SAPEON Inc.	SAPEON Korea Inc.		100.0	Manufacturing non-memory and other electronic integrated circuits
Subsidiaries owned by SK Telecom Americas, Inc.(*2)	Global AI Platform Corporation<br> <br>Korea<br>Co., Ltd.		100.0	Software development and supply services
	Global AI Platform Corporation		100.0	Software development and supply services
Others(*3)	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, 2023 and 2022 (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)	SK Telecom Americas, Inc., a subsidiary of the Company, newly established Global AI Platform Corporation Korea<br>Co., Ltd. and Global AI Platform Corporation for the nine-month period ended September 30, 2023.
---	---
(*3)	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 compensation given to such key management for the three and nine-month periods ended September 30, 2023 and 2022 are as follows:

(In millions of won)
	2023				2022
	Three-monthperiod endedSeptember 30		Nine-month<br>period endedSeptember 30		Three-monthperiod endedSeptember 30		Nine-month<br>period endedSeptember 30
Salaries	~~W~~	602		3,532		569		2,918
Defined benefit plan expense		158		846		208		613
Share option		933		1,596		508		1,089
	~~W~~	1,693		5,974		1,285		4,620

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

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2023 and 2022 (Unaudited)

29.	Transactions with Related Parties, Continued
(3)	Transactions with related parties for the three and nine-month periods ended September 30, 2023 and 2022 are as<br>follows:
---	---
(In millions of won)		For the period ended September 30, 2023
---	---	---	---	---	---	---	---	---	---	---	---	---	---
		Operating revenue<br>and others				Operating expenses<br>*and others (1)**				Acquisition ofproperty<br>and equipment andothers
Scope	Company	Three-month		Nine-<br>month		Three-month		Nine-<br>month		Three-month		Nine-<br>month
Ultimate Controlling Entity	SK Inc.(*2)	~~W~~	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 USA, 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, 2023 and 2022 (Unaudited)

29.	Transactions with Related Parties, Continued
(3)	Transactions with related parties for the three and nine-month periods ended September 30, 2023 and 2022 are as<br>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, 2023 and 2022 (Unaudited)

29.	Transactions with Related Parties, Continued
(3)	Transactions with related parties for the three and nine-month periods ended September 30, 2023 and 2022<br>are as follows, Continued:
---	---
(In millions of won)		For the period ended September 30, 2022
---	---	---	---	---	---	---	---	---	---	---	---	---	---
		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~~	3,438		9,163		131,986		438,514		7,246		17,026
Subsidiaries	SK Broadband Co., Ltd.		32,821		90,957		143,789		425,066		1,304		2,206
	PS&Marketing Corporation(*3)		2,771		7,537		304,874		919,162		326		566
	SK O&S Co., Ltd.(*4)		725		5,293		73,220		189,607		13,899		30,297
	SK Telink Co., Ltd.(*5)		25,951		79,269		3,891		12,593		—		—
	SERVICE ACE Co., Ltd.(*6)		2,435		16,416		28,976		90,465		—		—
	SERVICE TOP Co., Ltd.(*7)		2,108		14,333		30,514		93,668		—		—
	SK Communications Co., Ltd.		340		1,014		1,089		2,608		142		1,175
	Broadband Nowon Co., Ltd.(*8)		—		13,725		—		—		—		—
	Others		1,056		2,952		5,656		16,265		82		331
			68,207		231,496		592,009		1,749,434		15,753		34,575
Associates	F&U Credit information Co., Ltd.		193		574		10,599		32,032		157		157
	SK USA, Inc.		—		—		1,297		3,495		—		—
	HanaCard Co., Ltd.(*9)		—		2,629		—		1,133		—		22
	Daehan Kanggun BcN Co., Ltd.		2,500		7,406		—		—		—		—
	Others(*10)		—		12,411		170		170		—		—
			2,693		23,020		12,066		36,830		157		179
Others	SK Innovation Co., Ltd.		3,480		8,710		3,437		9,960		—		—
	SK Networks Co., Ltd.		289		922		2,807		9,151		—		—
	SK Networks Service Co., Ltd.		264		609		11,231		31,511		697		1,470
	SK Energy Co., Ltd.		475		1,548		12		197		—		—
	Content Wavve Corp.		1,712		2,136		23,186		67,917		175		175
	Happy Narae Co., Ltd.		33		103		2,468		7,456		12,300		50,711
	SK Shieldus Co., Ltd.		7,266		17,182		27,243		77,195		1,604		5,136
	Eleven Street Co., Ltd.		2,181		6,809		3,174		15,086		—		—
	SK Planet Co., Ltd.		2,144		5,748		20,800		60,993		3,015		4,891
	SK hynix Inc.		13,434		32,122		10		62		—		—
	Tmap Mobility Co., Ltd.		3,551		10,259		1,174		3,723		548		548
	Dreamus Company		2,602		4,557		20,397		63,998		550		550
	One Store Co., Ltd.		4,216		12,224		1		1		—		—
	UNA Engineering Inc. (Formerly, UbiNS Co., Ltd.)		—		—		888		1,457		2,347		6,418
	Others		7,763		19,912		6,959		18,421		5,239		8,089
			49,410		122,841		123,787		367,128		26,475		77,988
		~~W~~	123,748		386,520		859,848		2,591,906		49,631		129,768

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2023 and 2022 (Unaudited)

29.	Transactions with Related Parties, Continued
(3)	Transactions with related parties for the three and nine-month periods ended September 30, 2023 and 2022<br>are as follows, Continued:
---	---
(*1)	Operating expenses and others include lease payments by the Company.
---	---
(*2)	Operating expenses and others include ~~W~~218,019 million of dividends paid by the Company.<br>
---	---
(*3)	Operating expenses and others include ~~W~~468,190 million paid to PS&Marketing<br>Corporation relating to purchase of accounts receivable resulting from sale of handsets.
---	---
(*4)	Operating revenue and others include ~~W~~3,000 million of dividend income received.<br>
---	---
(*5)	Operating revenue and others include ~~W~~3,009 million of dividend income received.<br>
---	---
(*6)	Operating revenue and others include ~~W~~8,003 million of dividend income received.<br>
---	---
(*7)	Operating revenue and others include ~~W~~8,000 million of dividend income received.<br>
---	---
(*8)	Operating revenue and others include ~~W~~13,721 million of dividend income received.<br>
---	---
(*9)	HanaCard Co., Ltd. was excluded from the related parties due to the disposal of shares for the nine-month<br>period ended September 30, 2022, and the transactions above occurred before the disposal.
---	---
(*10)	Operating revenue and others include ~~W~~12,410 million of dividend income received from<br>Korea IT Fund.
---	---

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2023 and 2022 (Unaudited)

29.	Transactions with Related Parties, Continued
(4)	Account balances with related parties as of September 30, 2023 and December 31, 2022 are as follows:<br>
---	---
(In millions of won)		September 30, 2023
---	---	---	---	---	---	---	---
		Receivables				Payables
Scope	Company	Loans		Accounts receivable –trade, etc.		Accounts payable –other, etc.
Ultimate Controlling Entity	SK Inc.	~~W~~	—		1,018		34,942
Subsidiaries	SK Broadband Co., Ltd.		—		57,442		248,251
	PS&Marketing Corporation		—		1,331		54,664
	SK O&S Co., Ltd.		—		20		39,569
	SK Telink Co., Ltd.		—		21,487		18,177
	SERVICE ACE Co., Ltd.		—		293		23,046
	SERVICE TOP Co., Ltd.		—		—		21,620
	SK Communications Co., Ltd.		—		2		8,351
	Others		—		1,283		23,451
			—		81,858		437,129
Associates	F&U Credit information Co., Ltd.		—		186		4,139
	Wave City Development Co., Ltd.(*1)		—		901		—
	Daehan Kanggun BcN Co., Ltd.(*2)		22,148		2,718		—
	SK USA, Inc.		—		—		1,446
			22,148		3,805		5,585
Others	SK hynix Inc.		—		4,481		172
	SK Planet Co., Ltd.		—		10,277		8,262
	Eleven Street Co., Ltd.		—		511		6,047
	One Store Co., Ltd.		—		590		14,073
	SK Shieldus Co., Ltd.		—		12,343		22,130
	SK Innovation Co., Ltd.		—		1,094		27,477
	SK Networks Co., Ltd.		—		189		32,928
	SK Networks Services Co., Ltd.		—		—		7,104
	SK RENT A CAR Co., Ltd.		—		98		14,387
	Incross Co., Ltd.		—		2,043		1,507
	UNA Engineering Inc.<br>(Formerly, UbiNS Co., Ltd.)		—		—		346
	Mintit Co., Ltd.		—		6,164		—
	Happy Narae Co., Ltd.		—		—		460
	Content Wavve Corp.		—		1,570		7,670
	Dreamus Company		—		349		8,938
	Others		—		3,860		4,654
			—		43,569		156,155
		~~W~~	22,148		130,250		633,811
(*1)	As of September 30, 2023, the Company recognized loss allowance for the entire balance of accounts<br>receivable – trade.
---	---
(*2)	As of September 30, 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, 2023 and 2022 (Unaudited)

29.	Transactions with Related Parties, Continued
(4)	Account balances with related parties as of September 30, 2023 and December 31, 2022 are as<br>follows, Continued:
---	---
(In millions of won)		December 31, 2022
---	---	---	---	---	---	---	---
		Receivables				Payables
Scope	Company	Loans		Accounts receivable –trade, etc.		Accounts payable –other, etc.
Ultimate Controlling Entity	SK Inc.	~~W~~	—		2,247		78,030
Subsidiaries	SK Broadband Co., Ltd.		—		37,790		204,562
	PS&Marketing Corporation		—		1,393		64,880
	SK O&S Co., Ltd.		—		3		50,213
	SK Telink Co., Ltd.		—		17,921		18,684
	SERVICE ACE Co., Ltd.		—		379		26,720
	SERVICE TOP Co., Ltd.		—		2		26,536
	SK Communications Co., Ltd.		—		5		7,671
	Others		—		1,085		20,529
			—		58,578		419,795
Associates	F&U Credit information Co., Ltd.		—		5		4,775
	Wave City Development Co., Ltd.(*1)		—		901		—
	Daehan Kanggun BcN Co., Ltd.(*2)		22,147		3,199		—
	SK USA, Inc.		—		—		1,519
			22,147		4,105		6,294
Others	SK hynix Inc.		—		13,705		311
	SK Planet Co., Ltd.		—		6,648		28,097
	Eleven Street Co., Ltd.		—		454		8,018
	One Store Co., Ltd.		—		1,648		13,823
	SK Shieldus Co., Ltd.		—		13,324		12,473
	SK Innovation Co., Ltd.		—		5,592		32,305
	SK Networks Co., Ltd.		—		426		36,903
	SK Networks Services Co., Ltd.		—		—		9,241
	SK RENT A CAR Co., Ltd.		—		89		9,920
	Incross Co., Ltd.		—		2,335		15,527
	UNA Engineering Inc.<br>(Formerly, UbiNS Co., Ltd.)		—		—		12,008
	Mintit Co., Ltd.		—		34,853		—
	Happy Narae Co., Ltd.		—		—		30,467
	Content Wavve Co., Ltd.		—		349		19,239
	Dreamus Company		—		146		3,659
	Others		—		8,184		11,683
			—		87,753		243,674
		~~W~~	22,147		152,683		747,793
(*1)	As of December 31, 2022, the Company recognized loss allowance amounting to<br>~~W~~379 million for accounts receivable – trade.
---	---
(*2)	As of December 31, 2022, 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, 2023 and 2022 (Unaudited)

29.	Transactions with Related Parties, Continued
(5)	The Company has granted SK REIT Co., Ltd. the right of first offer regarding the disposal of real estate owned<br>by the Company. Whereby, the negotiation period is within 3 to 5 years from June 30, 2021, date of agreement, and the Company has been granted the right by SK REIT Co., Ltd. to lease the real estate in preference to a third party if SK REIT<br>Co., Ltd. purchases the real estate from the Company.
---	---
(6)	The details of new and disposed investments in subsidiaries, associates and joint ventures for the nine-month<br>period ended September 30, 2023 are as presented in Note 8.
---	---

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2023 and 2022 (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~~282,702 million and ~~W~~357,467 million as of September 30, 2023 and December 31, 2022, 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, 2023, 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 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. Before March 31, 2025, the Company, HFG, and HanaCard Co., Ltd. may not dispose of shares they have acquired or will acquire under the aforementioned transaction.

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2023 and 2022 (Unaudited)

31.	Statements of Cash Flows
(1)	Adjustments for income and expenses from operating activities the nine-month periods ended September 30, 2023<br>and 2022 are as follows:
---	---
(In millions of won)
---	---	---	---	---	---	---
	For the nine-month period ended
	September 30, 2023			September 30, 2022
Gain on foreign currency translations	~~W~~	(805	)		(924	)
Interest income		(25,288	)		(20,776	)
Dividends		(200,406	)		(49,637	)
Gain relating to investments in subsidiaries, associates and joint ventures, net		—			(97,863	)
Gain relating to financial instruments at FVTPL		(78,777	)		(18,401	)
Gain on disposal of property and equipment<br><br><br>and intangible assets		(15,035	)		(9,900	)
Gain on sale of accounts receivable – other		—			(1,043	)
Other income		(1,422	)		(4,715	)
Loss on foreign currency translations		204			488
Bad debt for accounts receivable – trade		20,884			14,387
Bad debt for accounts receivable – other		3,976			1,543
Loss relating to financial instruments at FVTPL		23,581			164
Depreciation and amortization		2,123,516			2,123,038
Loss on disposal of property and equipment and intangible assets		3,064			4,840
Loss on sale of accounts receivable – other		48,595			23,212
Interest expense		244,263			194,864
Expense related to defined benefit plan		41,116			38,429
Bonus paid by treasury shares		20,420			24,007
Share option		2,828			77,176
Income tax expense		246,385			318,067
Other expenses		(5,389	)		15,388
	~~W~~	2,451,710			2,632,344

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2023 and 2022 (Unaudited)

31.	Statements of Cash Flows, Continued
(2)	Changes in assets and liabilities from operating activities for the nine-month periods ended September 30, 2023<br>and 2022 are as follows:
---	---
(In millions of won)
---	---	---	---	---	---	---
	For the nine-month period ended
	September 30, 2023			September 30, 2022
Accounts receivable – trade	~~W~~	(186,749	)		(55,549	)
Accounts receivable – other		17,364			(12,925	)
Advanced payments		26,411			(6,452	)
Prepaid expenses		31,874			(14,304	)
Inventories		(17,034	)		(9,683	)
Long-term accounts receivable – other		33,919			57,666
Long-term prepaid expenses		—			18,909
Guarantee deposits		(6,968	)		2,374
Contract assets		8,789			(3,050	)
Accounts payable – other		(190,889	)		(165,477	)
Withholdings		118,242			92,794
Deposits received		4,680			(4,277	)
Accrued expenses		40,315			20,866
Plan assets		(6,257	)		(9,362	)
Retirement benefits payment		(22,480	)		(16,393	)
Contract liabilities		(23,881	)		(4,319	)
Others		(2,142	)		(2,391	)
	~~W~~	(174,806	)		(111,573	)
(3)	Significant non-cash transactions for the nine-month periods ended<br>September 30, 2023 and 2022 are as follows:
---	---
(In millions of won)
---	---	---	---	---	---	---
	For the nine-month period ended
	September 30, 2023			September 30, 2022
Decrease in accounts payable – other relating to the acquisition of property and equipment<br>and intangible assets	~~W~~	(548,910	)		(605,983	)
Increase of<br>right-of-use assets		205,869			291,538
Transfer from property and equipment to investment property		4,437			16,788

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2023 and 2022 (Unaudited)

32.	Emissions Liabilities
(1)	The quantity of emissions rights allocated free of charge for each implementation year as of September 30, 2023<br>are as follows:
---	---
(In tCO2-eQ)
---	---	---	---	---	---	---	---	---	---	---	---	---
	Quantities<br>allocated in 2021		Quantities<br>allocated in 2022		Quantitiesallocated in 2023		Quantitiesallocated in 2024		Quantitiesallocated in 2025		Total
Emissions rights allocated free of charge(*)		1,031,526		1,223,008		1,031,526		1,021,864		1,021,864		5,329,788
(*)	The changes in quantity due to additional allocation, cancellation of allocation and others are considered.<br>
---	---
(2)	Changes in emissions rights quantities the Company held are as follows:
---	---
(In tCO2-eQ)
---	---	---	---	---	---	---	---	---	---	---	---	---
	Quantities<br>allocated in 2021			Quantities<br>allocated in 2022			Quantitiesallocated in the nine-month period endedSeptember 30, 2023			Total
Beginning		—			—			306,575			306,575
Allocation at no cost		1,031,526			1,223,008			1,031,526			3,286,060
Purchase		—			204,761			—			204,761
Surrendered or shall be surrendered		(1,051,380	)		(1,121,194	)		(1,227,222	)		(3,399,796	)
Borrowed		19,854			—			—			19,854
Ending		—			306,575			110,879			417,454
(3)	As of September 30, 2023, the estimated annual greenhouse gas emissions quantities of the Company are 1,227,222<br>tCO2-eQ.
---	---

SK TELECOM CO., LTD.

Notes to the Interim Separate Financial Statements

September 30, 2023 and 2022 (Unaudited)

33.	Subsequent Events

The Board of Directors of the Company resolved to pay interim dividends at the Board of Directors’ meeting held on October 25, 2023, and the details are as follows:

Classification	Description
Interim dividend amount	~~W~~830 per share (Total amount: ~~W~~179,623 million)
Dividend rate	1.63%
Record date	September 30, 2023
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 15, 2023.

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