SK Telecom Co., Ltd. provides wireless telecommunications service in Korea.
The company continues to pioneer the commercial development and implementation of state-of-the-art wireless and fixed-line technologies and services, as well as other new services and products utilizing the company’s AI and digital infrastructure capabilities, and its telecommunications platforms, including a broad range of IoT solutions, cloud services, smart factory solutions, subscription services, advertising, and c...
SK Telecom Co., Ltd. provides wireless telecommunications service in Korea.
The company continues to pioneer the commercial development and implementation of state-of-the-art wireless and fixed-line technologies and services, as well as other new services and products utilizing the company’s AI and digital infrastructure capabilities, and its telecommunications platforms, including a broad range of IoT solutions, cloud services, smart factory solutions, subscription services, advertising, and curated shopping services, AI B2C services, and AI B2B services.
Segments
The company’s operations are reported in three segments:
Cellular services, which include wireless voice and data transmission services, sales of wireless devices, cellular interconnection services, IoT solutions, cloud services, smart factory solutions, subscription services, advertising, and curated shopping services, AI B2C services, and AI B2B services;
Fixed-line telecommunications services, which include fixed-line telephone services, broadband Internet services, advanced media platform services (including IPTV and cable TV services), and business communications services; and
Other businesses, which include the company’s T-commerce business and certain other miscellaneous businesses.
Business Strategy
The company’s strategies are to maintain its leadership in the wireless services business by offering innovative 5G services and customer-oriented products and services; develop the company’s next-generation growth businesses; enhance its technological capabilities, and new products and services to support its 5G network; and pursue sustainable management to seek mutual growth with the broader society.
Through the AI Pyramid strategy, the company seeks to strengthen its relationship with its customers through advances in AI technology and the creation of AI services, integrating both internal research and development efforts and external partnerships and alliances.
Cellular Services
The company offers wireless voice and data transmission services, sells wireless devices, and provides various other technological solutions and services through its cellular services segment. The company’s wireless voice and data transmission services are offered through its backbone networks that collectively can be accessed by substantially all of the Korean population. As of December 31, 2024, the company had 24.6 million mobile phone subscribers, including MVNO subscribers leasing its networks.
Wireless Services
The company offers wireless voice transmission and data transmission services to its subscribers through its backbone networks. The company’s wireless telecommunications services are available to its subscribers receiving service under the SK Telecom brand. In addition, customers can obtain wireless telecommunications services that operate on its network from MVNOs that lease its wireless networks.
The company provides a voice-over-LTE service, known as the company’s ‘HD Voice’ service, to all of its LTE and 5G subscribers, featuring high-quality voice transmission, fast call connection, voice-to-video call switching, and digital content sharing during calls. The company also offers its subscribers a wide range of wireless data transmission services. The company’s messaging service allows its subscribers to send and receive text, graphic, audio, and video messages. In addition, the company’s subscribers can access a wide variety of digital content and services through mobile applications providing music, video, gaming, news, commerce, and financial services, as well as solutions that enable subscribers to access the Internet and e-mail. The company intends to continue to build its wireless data services as a platform for growth, extending its portfolio of wireless data services, and developing new content for its subscribers.
Through service agreements with various foreign wireless telecommunications service providers, the company offers cellular global roaming services, branded as the company’s ‘T-Roaming’ service. Global roaming services allow subscribers traveling abroad to make and receive calls using their regular mobile phone numbers. In addition, the company provides global roaming service to foreigners traveling to Korea. In such cases, the company generally receives a fee from the traveler’s local wireless telecommunications service provider.
Through the company’s subsidiary SK Telink Co., Ltd. (‘SK Telink’), the company also operates its MVNO business under the brand ‘SK 7Mobile,’ which offers excellent quality at reasonable rates utilizing SK Telecom’s wireless networks. SK Telink is focused on developing low-cost distribution channels and targeting niche customer segments that have a lower average revenue per user than that of SK Telecom’s subscriber base.
In addition, the company provides interconnection service to connect its networks to domestic and international fixed-line and other wireless networks.
Wireless Device Sales
The company offers several categories of wireless devices, including smartphones, basic phones, tablets, and other Internet access devices, and wearable devices that are sold through an extensive distribution network, which consists of authorized exclusive dealers, independent retailers, as well as branch offices and stores directly operated by the company through its wholly-owned subsidiary, PS&Marketing. As of December 31, 2024, substantially all of its mobile phone subscribers (including MVNO subscribers leasing its networks) owned smartphones that have direct access to the Internet. The company purchases a substantial majority of its wireless devices from Samsung Electronics and Apple.
Smartphones and Basic Phones: The company offers smartphones that are enabled to utilize its digital wireless networks and run on various operating systems, such as Apple iOS and Google Android. The company also offers basic phones that have the ability to access wireless Internet services.
Tablets and Wearable Devices: The company offers tablets and wearable devices, primarily comprising smart watches, which can access the Internet via its digital wireless networks and a Wi-Fi connection. The tablets and wearable devices run primarily on the Apple iOS and Google Android operating systems, and the company provides targeted rate plans that are specific to such devices.
Other Solutions and Services
In addition to the company’s cellular services and wireless device sales businesses, the company provides a variety of other innovative technological solutions and services by leveraging its capabilities in telecommunications, AI, and ICT technologies, and the company is continuing to invest in these and other emerging new business areas, including the following:
IoT Solutions and Other Enterprise Communication Services
Through the company’s IoT solutions business, the company provides network access and enhanced services to support telemetry-type applications, which are characterized by massive machine-type communication (‘mMTC’) wireless connections, to its enterprise customers. In order to promote the growth of its IoT solutions business, the company deployed networks nationwide that are designed to support IoT devices, namely its high-speed LTE-M network in March 2016 and its low-cost Low-Power Wide-Area network based on LoRa technology (the company’s ‘LoRa network’) in July 2016. In April 2018, the company increased the battery efficiency of its IoT devices by launching its LTE Cat.M1 technology, and it has further enhanced its competitiveness in this business with its 5G network.
The company provides network access and customized IoT solutions to its enterprise customers. The company’s IoT services support devices that are used in a variety of market segments, including retail, utilities, security, automotive, agriculture, and data analytics, as well as public institutions. For example, its Cloud Energy Management Solution (‘Cloud EMS’) business provides a one-stop cloud computing-based energy management platform that collects and analyzes energy usage data from business customers and offers solutions to optimize and reduce their energy consumption. As of December 31, 2024, Cloud EMS had more than 200 customers, mostly from energy-intensive industries, such as the petrochemical industry, as well as the luxury retail industry.
The company also provides a variety of other communication solutions and services to its enterprise customers. The company’s key offerings in this area include security, advertising, and monitoring solutions, business messaging services, and platforms for mobile payment, authentication, and ancillary value-added services.
Cloud Services
The company provides a comprehensive range of managed cloud services that focus on supporting cloud-based AI services in Korea. The company’s managed cloud services are provided in collaboration with its SK Group affiliate SK C&C Inc., which engages in B2B sales and the establishment and operation of the services, while the company provides the necessary AI infrastructure and solutions. The company’s managed cloud services benefit from its leadership in network infrastructure in Korea and its competitive capabilities in AI, big data, data centers, and information security. The company plans to further strengthen its market position by developing and providing tailored AI cloud services that meet the needs of its enterprise customers.
Smart Factory Solutions
The company provides tailored smart factory solutions that leverage its 5G and other wireless technology infrastructure, as well as its capabilities in artificial intelligence-of-things technology and big data analysis, to cater primarily to businesses in high-tech industries. The company’s smart factory solutions cater to the various needs of its customers, including those related to manufacturing processes, quality control, equipment management, industrial safety, and logistics.
Subscription Service
In August 2021, the company launched a subscription-based membership service under its ‘T Universe’ brand name. T Universe currently offers several types of subscription packages, and a subscriber can choose from a variety of available benefits, including free shipping and discount coupons on merchandise purchases made on the Amazon Global Store (which operates on Eleven Street’s 11st e-commerce platform), access to a cloud storage service, and discounts and/or coupons from various participating food and beverage store chains and delivery service providers, online video streaming and music services, including YouTube Premium, Wavve, and Netflix.
Customers can also choose to subscribe to specific products or services. In order to continue expanding the company’s T Universe membership base, the company plans to pursue additional business partnerships with popular consumer brands and service providers to increase the number and appeal of the businesses that participate in the T Universe subscription program. The company also plans to continue to invest in improving its customers’ user experience and strengthen the use of AI and digital technologies in its marketing efforts to continue the growth and transformation of T Universe into an ‘AI-based subscription commerce platform.’
Advertising and Curated Shopping Services
The company offers advertising services to businesses by leveraging its wireless and fixed-line telecommunications services platforms. The company’s advertising services primarily consist of display advertising on its proprietary mobile applications for smartphones, including A. Phone and ‘T Membership’ (which manages its customer loyalty program under the same name). In addition, the company offers a text message-based curated shopping service under its ‘T Deal’ brand. The company’s customers, who have consented to the T Deal service, receive a daily text message on their smartphones with a link to a broad range of merchandise with significant discounts that are specially curated to maximize customer interest by utilizing AI technology and big data. In June 2024, in partnership with Moloco Inc., a Silicon Valley-based company that uses machine learning-based AI technology to help companies efficiently carry out advertisements, the company launched ‘ASUM 2.0,’ an AI-based advertising platform, which the company anticipates will enhance its customer targeting precision.
AI B2C Services
Through the company’s AI B2C services business, the company seeks to provide innovative AI-based mobile agent services that meet its customers’ evolving needs in an increasingly connected world. In September 2023, the company officially launched A., which offers the ability to verbally communicate with the user and handle a variety of tasks on the user’s smartphone, including recording and summarizing calls, managing the user’s schedules, providing real-time interpretation service during calls, and recommending and playing personalized music and video contents. In August 2024, A. underwent a major update, allowing it to deliver a natural conversational experience and specialized services through various agents with enhanced search and everyday convenience features. In October 2024, the company rebranded its proprietary voice call application, ‘T Phone,’ as ‘A. Phone,’ embedding certain of A.’s AI-enhanced service features, including the ability to record, summarize, and translate calls, into the A. Phone application. The company plans to continually strengthen the level of personalization offered and expand the portfolio of services handled by A., including through combination with the company’s other service offerings, as well as collaboration with its SK Group affiliates and third parties.
In November 2024, the company unveiled ‘A*’ (or ‘Aster’), an AI-driven personal assistant application targeting global users. A* is designed to go beyond answering simple queries or data searching to also assist users with setting goals, making plans, and completing specific tasks based on the users’ intentions. The company plans to collaborate with global search platform providers, large-language model developers, and third parties to enhance Aster’s functionalities. The company launched a closed beta-test version in November 2024 and an open beta-test version in March 2025, and it plans to officially launch the application in the United States during the second half of 2025.
AI B2B Services
The company’s business customers have been increasingly seeking digital transformation by implementing AI technology, including generative AI, into their operations and business cycle. In order to meet such needs of its business customers, the company has introduced various AI technology services, which it has been developing in order to improve its and its affiliated companies’ competitiveness, which are collectively referred to as ‘AI B2B’ services. The company’s AI B2B services combine AI technology with connectivity and infrastructure technologies of its core telecommunications business, as well as the underlying technologies of its other new growth businesses, and are offered in six categories, including generative AI, AI vision, AI robot, AI contact center, AI marketing, and AI data.
Other New Business Services
The company is also investing in and developing new business areas that actively integrate AI technology, including through strategic investments in, and collaboration with, leading domestic and overseas technology companies. The company has also been making investments to develop and launch GPU-as-a-service (‘GPUaaS’), which would enable the company’s enterprise customers to access GPU cloud services on an as-needed basis to develop or utilize AI services. As part of such initiative, in February 2024, the company made an equity investment of US$20 million in Lambda, Inc., a GPU cloud service provider based in San Francisco, to cooperate on the development and launch of GPUaaS and AI data center solutions and services. In August 2024, the company entered into a strategic partnership with Lambda, Inc. to deploy its AI cloud platform in SK Broadband’s Gasan data center, and launched the company’s GPUaaS in January 2025. Furthermore, the company has been engaged in the research, development, and promotion of AI data center solutions. As part of such initiative, in December 2024, the company made an equity investment of US$200 million in Penguin Solutions Inc., a leading designer and developer of enterprise solutions based in Milpitas, California, in order to cooperate on the development of differentiated global end-to-end AI factory and data center solutions and services.
Digital Wireless Network
The company offers wireless voice and data transmission services throughout Korea using digital wireless networks, primarily consisting of its 5G network, LTE network, WCDMA network, Wi-Fi network, and LoRa network. The company continually upgrades and increases the capacity of its wireless networks to keep pace with advancements in technology, the growth of its subscriber base, and the increased usage of voice and wireless data services by its subscribers.
5G Network: 5G is the dominant wireless network that enables data to be transmitted at speeds faster than its LTE network, with lower latency. The company began the operation of its 5G network in December 2018 on a limited basis for business customers, beginning with a few major commercial districts in Seoul and other metropolitan areas. The company launched wireless service plans using the 5G network in April 2019 following the commencement of sales of the first 5G-compatible smartphones, and it continues to maintain and enhance its 5G network coverage. The company currently provides full nationwide outdoor terrestrial 5G network coverage and substantially full nationwide 5G network coverage in large buildings and subway lines. The company’s 5G services provided a maximum data transmission speed of 2.75 Gbps, and its 5G penetration, which represents the number of its 5G subscribers as a percentage of its total number of subscribers, in each case including MVNO subscribers leasing its networks, was 50.6% as of December 31, 2024. The company has also deployed its 5G network for mMTC connections relating to its IoT solutions.
In December 2024, the MSIT announced that the company’s 5G network provided the fastest upload and download speeds among the three mobile network operators, KT, LG U+, and the company. The nationwide average download speed of the company’s 5G network was 1,065 Mbps compared to 1,056 Mbps for KT’s 5G network and 956 Mbps for LG U+’s 5G network.
LTE Network: LTE technology has become widely accepted globally as the standard fourth-generation technology and enables data to be transmitted at speeds faster than its WCDMA network. Since first commencing the company’s LTE services in July 2011, the company has developed and launched various upgraded LTE networks and related services providing faster network speeds, enhanced connectivity, and broader coverage areas. The company’s LTE penetration, which represents the number of its LTE subscribers as a percentage of its total number of subscribers, in each case including MVNO subscribers leasing its networks, was 46.8% as of December 31, 2024, as a result of the ongoing customer migration to its 5G network. The company expects that wireless services based on LTE technology will continue to be used by a material portion of its subscriber base in the near future, despite the ongoing migration of wireless service users to its 5G network, and the company plans to continue to deploy improved LTE technology to increase the maximum data transmission speed of its services.
In December 2024, the MSIT announced that the company’s LTE network provided the fastest upload and download speeds among the three mobile network operators, KT, LG U+, and the company. The nationwide average download speed of the company’s LTE network was 238 Mbps compared to 167 Mbps for KT’s LTE network and 129 Mbps for LG U+’s LTE network.
Wi-Fi Network: Wi-Fi technology enables the company’s subscribers with Wi-Fi-capable devices, such as smartphones, laptops, and tablet computers, to access mobile Internet. The company started to build Wi-Fi access points in 2010, and as of December 31, 2024, the company had more than 85,000 Wi-Fi access points in public areas, such as shopping malls, restaurants, coffee shops, subways, and airports, where, generally, the demand for high-speed wireless Internet service is high. While each Wi-Fi access point typically has a radius of approximately 20-30 meters, some of the company’s Wi-Fi hot zones, which have multiple Wi-Fi access points, including those installed at public transportation facilities and amusement parks, have much wider service areas.
LoRa Networks: A Low-Power Wide-Area network based on LoRa technology is a type of telecommunications network designed to support communication among IoT devices. It can transmit data over tens of kilometers while consuming much less power than LTE networks, lowering costs for connectivity, as well as lowering battery power usage. The company completed the nationwide deployment of its LoRa network in July 2016. The company expects that its LoRa network will provide the infrastructure necessary for the growth of not only its own IoT solutions business, but also the IoT industry as a whole.
Network Infrastructure
As of December 31, 2024, the company’s 5G, LTE, and WCDMA networks had an aggregate of 59,469 base stations. As the company continues to enhance its 5G network coverage, the number of its base stations is expected to increase accordingly.
As of December 31, 2024, the company has purchased substantially all of the equipment for its networks from Samsung Electronics, Ericsson-LG, and Nokia. Most of the transmission lines the company uses, including virtually all of the lines linking switching stations, as well as a portion of the lines linking base stations to switching stations, comprise optical fiber lines that the company owns and operates directly. However, the company has not undertaken to install optical fiber lines to link every base station and switching station. In places where the company has not installed its own transmission lines, it has leased lines from KT and LG U+. The company intends to increase the efficiency of its network utilization and provide optimal services by internalizing transmission lines.
The company uses a wireless network surveillance system. This system oversees the operation of base stations and allows the company to monitor its main equipment located throughout the country from one monitoring station. The automatic inspection and testing provided to the base stations lets the system immediately rebalance to the most suitable setting, and the surveillance system provides for automatic dispatch of repair teams and quick recovery in emergency situations.
Marketing, Distribution, and Customer Service
Marketing: The company’s marketing strategy is focused on offering solutions tailored to the needs of its various customer segments, promoting its brand, and leveraging its extensive distribution network. The company’s marketing plan includes a coordinated program of television, print, radio, outdoor signage, Internet, and point-of-sale media promotions designed to relay a consistent message across all of its markets. The company markets its wireless products and services under the ‘T’ brand, which signifies the centrality of ‘Telecommunications’ and ‘Technology’ to the company’s business, and also seeks to emphasize its commitment to providing ‘Top’ quality, ‘Trustworthy’ products and services to its customers.
The company has implemented certain information technology improvements in connection with its marketing strategy, including customer management systems, as well as more effective information security controls. The company currently operates a customer information system designed to provide it with an extensive customer database. The company’s customer information system includes a billing system that provides it with comprehensive account information for internal purposes and enables it to efficiently respond to customer requests. The company’s customers can also change their rate plans, verify the charges accrued on their accounts, receive their bills online, and send text messages to its other subscribers through its website at www.tworld.co.kr and through its ‘T world’ mobile application.
The company strives to improve subscriber retention through its T Membership program, which is a membership service available to its wireless subscribers. The company’s T Membership program provides various membership benefits to its members, such as discounts with its membership partners for dining, shopping, entertainment, and travel, membership points accumulation, access to its online membership shopping mall, and invitations to various promotional events.
Distribution: The company uses a combination of an extensive network, including branch offices and stores, directly operated by it through its subsidiary, PS&Marketing, more than 2,700 authorized exclusive dealers, and an extensive network of independent retailers in order to increase subscriber growth while reducing subscriber acquisition costs.
As part of the company’s initiative to provide a differentiated customer service experience, the company operates T Premium Stores that allow its potential and existing subscribers to receive detailed information on its subscription services. As of December 31, 2024, the company operated approximately 1,100 T Premium Stores.
In addition, the company operates an online distribution channel, ‘T Direct Shop,’ through which subscribers can conveniently purchase wireless devices and subscribe to its services online. The company also operates a dedicated online shop on 11st, the company’s former subsidiary Eleven Street’s e-commerce marketplace. In light of increasing customer preference for online service, the level of distribution of its wireless devices and its services through online channels has significantly increased in recent years. The company intends to continue to develop its online distribution channel to leverage its offline distribution capabilities to provide convenience and additional value to its subscribers. For example, subscribers purchasing wireless devices through T Direct Shop can opt to pick up their devices at one of the company’s offline stores.
Authorized dealers are entitled to an initial commission for each new subscriber registered by the dealer, as well as an average ongoing commission calculated as a percentage of that subscriber’s monthly plan-based rate for the first five years.
Customer Service: The company provides high-quality customer service directly through its two subsidiaries, Service Ace Co., Ltd. and Service Top Co., Ltd., rather than rely on outsourcing. SK O&S Co., Ltd. operates the company’s switching stations and related transmission and power facilities and offers quality customer service primarily to its business customers. The company has held the top position with respect to its telecommunications service in Korea’s leading three customer satisfaction indices, the National Customer Satisfaction Index, the Korean Customer Satisfaction Index, and the Korean Standard-Service Quality Index, for 27 years, 27 years, and 25 years, respectively.
Fixed-line Telecommunications Services
The company offers fixed-line telephone, broadband Internet, and advanced media platform services (including IPTV and cable TV services) and business communications services through its fixed-line telecommunications services segment. The company’s fixed-line telecommunications services are provided by its subsidiary, SK Broadband.
As part of the company’s efforts to enhance its capabilities and increase its market share in the fixed-line business, the company completed the Tbroad Merger in April 2020. In November 2024, in order to enhance management efficiency and strengthen the company’s control over SK Broadband, the company entered into an agreement to acquire an additional 24.8% equity interest in SK Broadband from minority shareholders. Such transaction is expected to be completed in May 2025, subject to the satisfaction of customary closing conditions. The company’s ownership of such additional equity interest had already been recognized in its consolidated financial statements as of and for the year ended December 31, 2024, and the company currently owns approximately 99.1% of SK Broadband’s total outstanding shares.
Fixed-line Telephone Services
The company’s fixed-line telephone services comprise local, domestic long distance, international long distance, and VoIP services. VoIP is a technology that transmits voice data through an Internet Protocol network. As of December 31, 2024, the company had approximately 3.4 million fixed-line telephone subscribers (including subscribers to VoIP services of SK Broadband). The company’s fixed-line telephone services are primarily offered under the ‘B phone’ brand name. A portion of the company’s fixed-line telephone services were previously provided through the VoIP services of its subsidiary SK Telink that targeted corporate customers, which business was acquired by SK Broadband in April 2021.
Broadband Internet Access Services
The company’s broadband Internet access network covered a substantial majority of households in Korea as of December 31, 2024. As of December 31, 2024, the company had approximately 7.2 million broadband Internet access subscribers. The company offers broadband Internet access products with various throughput speeds, ranging from optical LAN service, which provides maximum data transmission speeds of up to 100 Mbps, to ‘Giga Premium’ and ‘Giga Premium×10,’ which provide maximum data transmission speeds of up to 1 Gbps and 10 Gbps, respectively.
Advanced Media Platform (including IPTV and Cable TV Services)
As part of the company’s initiative to be the leading next-generation platform provider, the company provides an advanced media platform with various media content and service offerings.
The company has offered video-on-demand services since 2006 and launched real-time IPTV services in 2009. The company offered IPTV services under the brand name ‘B tv’ with access to as many as 272 high definition channels depending on the subscription service as of December 31, 2024, as well as pay-per-view and subscription-based video-on-demand services providing a wide range of media content, including recent box office movie releases, popular U.S. and other foreign TV shows, and various children’s TV programs. The company also offers ‘B tv UHD,’ which is an ultra-high definition IPTV service and has a resolution that is four times as high as the standard high definition broadcasting service in the IPTV industry. As of December 31, 2024, the company had approximately 6.8 million IPTV subscribers. Since 2018, the company has unveiled a number of smart set-up boxes that incorporate voice recognition and command capabilities, as well as AI-based services.
In December 2023, the company introduced ‘AI B tv,’ Korea’s first AI-powered personalized IPTV service. Once a set-top box is turned on, AI B tv automatically recognizes the user and provides a hyper-personalized content experience, including recommending video-on-demand and other content based on the user’s viewing history analyzed through AI technology. The company plans to integrate T-commerce capabilities into AI B tv and allow users to concurrently search for and purchase the apparel and accessories that appear in the video-on-demand content, which are recognized through AI technology. The company also plans to further develop and improve its AI B tv service by integrating A. and generative AI technology. In September 2024, the company introduced ‘B tv A. Service,’ a new AI voice command service that utilizes A.’s large-language model and allows customers to explore content and receive recommendations.
Following the Tbroad Merger, the company has been offering cable TV services under the ‘B tv Cable’ brand with access to as many as 226 channels. As of December 31, 2024, the company had approximately 2.8 million cable TV subscribers.
In January 2021, in order to strengthen the company’s content generation capabilities, the company established a new subsidiary, Media S Co., Ltd. (‘Media S’), which currently operates two TV channels, ‘Channel S,’ which primarily broadcasts entertainment content, and ‘Channel S Plus,’ which specializes in variety shows and entertainment programs. Some of the content broadcasted on these two channels are original content co-produced by Media S and leading entertainment production companies. The company plans to further invest in developing and procuring additional original video content to increase the attractiveness of the channels operated by Media S.
The company also offers advertising services on its advanced media platform, primarily consisting of advertisements on video-on-demand and streaming content and its TV channels. In addition, in May 2024, the company began to offer access to the over-the-top content offerings of Netflix through its IPTV set-top boxes at a bundled discount with its IPTV subscriptions.
The company continues to expand the scope of its media services and content offerings to provide its subscribers with a vast library of high-quality content that can be accessed through its wireless networks and its fixed-line network, which will also increase the appeal of its advanced media platform to businesses as an advertising platform.
Business Communications Services
Through SK Broadband, the company offers other business communications services to its business customers, including corporations and government entities. The company’s business communications services offered by SK Broadband include leased line solutions, Internet data center solutions, and network solution services.
The company’s leased line solutions are exclusive lines that allow point-to-point connection for voice and data traffic between two or more geographically separate points. The company holds a license to operate leased line services on a nationwide basis in Korea and also uses international transmission lines to provide leased line services to other countries. The company’s leased line services enable high volumes of data to be transmitted swiftly and reliably. The company also provides back-up storage for transmitted data. Through the company’s Internet data centers, the company provides its business subscribers with server-based support, including co-location, dedicated server hosting, and cloud computing services. The company’s network solution service utilizes its network infrastructure and voice platform to provide 24-hour monitoring and control of its customers’ networks. Through this service, the company conducts remote monitoring of its customers’ data and voice communications infrastructure and network and traffic conditions, and carries out preventive examinations and on-site visits.
Marketing, Distribution, and Customer Service
The company focuses on bringing its fixed-line telephone, broadband Internet, and advanced media platform services (including IPTV and cable TV services) to residential users, and various business communications services to corporate users. The company markets its fixed-line telecommunications products and services under the ‘B’ brand. The company’s ‘B’ brand signifies its pursuit of creating a ‘Borderless’ media ecosystem with ‘Beloved’ content offerings to transform its business to go ‘Beyond’ simply offering connectivity to customers. It also seeks to emphasize its commitment to stand ‘Beside’ its customers to ‘Bridge’ their worlds, leading to ‘Bravo’ and ‘Blissful’ customer experience. The company’s ‘B’ brand also strengthens its shared identity with its wireless service’s ‘T’ brand.
The company operates an extensive distribution network, including regional marketing branch offices and numerous customer centers, large retail stores, and authorized dealers across Korea, in order to increase subscriber growth while reducing subscriber acquisition costs. In addition, SK Telecom’s direct retail stores and authorized dealers for wireless telecommunications services also market its fixed-line telephone, broadband Internet, and advanced media platform services (including IPTV and cable TV services), which has contributed to the increase in the number of subscribers to such services. The company has contracts with its customer centers to sell its services exclusively. These centers receive a commission for each service contract and installation contract secured.
In addition, the company operates an online distribution channel, ‘B Direct Shop,’ through which subscribers can conveniently subscribe online to the company’s pay TV, broadband Internet, and residential fixed-line telephone services. In light of increasing customer preference for online service, the level of distribution of its services through the B Direct Shop has consistently increased in recent years. The company intends to continue to develop its online distribution channel to leverage its offline distribution capabilities to provide convenience and additional value to its subscribers.
Sales to business subscribers are handled through the company’s in-house sales group, as well as a small-scale distribution network. The company’s in-house sales group focuses on large business clients, such as major corporations, public institutions, and governmental agencies. The company’s small-scale distribution network, on the other hand, targets smaller business clients, such as small businesses and sole proprietorship businesses.
Other Businesses
The company strives to continually diversify its products and services and develop new businesses that are complementary to its existing products and services, which the company includes in its other businesses segment.
The company operates a T-commerce network, ‘SK stoa,’ through its consolidated subsidiary SK Stoa, which offers a broad assortment of goods and services through pre-recorded television programming. The goods and services promoted on SK stoa’s T-commerce programming can be purchased through telephone orders, SK stoa’s mobile application, or online open marketplace, or a virtual application appearing on the television screen using the viewer’s remote controller. Since 2019, SK Stoa has offered searchable shopping programming that is available to viewers at their convenience by utilizing video-on-demand capabilities, and it is continually enhancing the level of personalized product and service recommendations offered by such platform by leveraging the company’s AI technology and wealth of customer data. SK Stoa also operates several private fashion and health supplement brands, and it is planning to further strengthen its portfolio of exclusively distributed high-margin products in fashion, health, and beauty. SK Stoa also acts as the exclusive T-commerce distributor for certain products and services of SK Group companies, such as food, electronics, home appliances, and car rentals.
Prior to the completion of the disposal transactions, the company also offered online portal services under its ‘Nate’ brand name through its former subsidiary NATE Communications Corporation, and online corporate employment benefits management and training services for Korean businesses and public institutions through its former indirect subsidiary SK M&Service. In December 2024, as part of the company’s efforts to increase its operational efficiency and rebalance its business areas, the company entered into agreements with Samgu Inc. and its affiliates to dispose of its 100% equity interest in NATE Communications Corporation and a 70% equity interest in SK M&Service, as well as its interest in a former non-consolidated associate.
Interconnection
The company’s wireless and fixed-line networks interconnect with the public switched telephone networks operated by KT and SK Broadband and, through their networks, with the international gateways of KT and LG U+, as well as the networks of the other wireless telecommunications service providers in Korea. These connections enable the company’s subscribers to make and receive calls from telephones outside its networks. Under Korean law, certain service providers, including the company, are required to permit other service providers to interconnect to their networks.
Domestic Calls
Wireless-to-Fixed-line: According to the company’s interconnection arrangement with KT, for a call from its wireless network to KT’s fixed-line network, the company collects the usage rate from its wireless subscriber and in turn pays KT the interconnection charges. Similarly, KT pays interconnection charges to SK Broadband for a call from KT’s wireless network to SK Broadband’s fixed-line network. The interconnection rate applicable to both KT and SK Broadband was Won 6.89 per minute for 2024.
Fixed-line-to-Wireless: The MSIT determines interconnection arrangements for calls from a fixed-line network to a wireless network. For a call initiated by a fixed-line user to one of the company’s wireless subscribers, the fixed-line network operator collects its usage fee from the fixed-line user and remits to the company an interconnection charge. Interconnection with KT accounts for substantially all of the company’s fixed-line-to-wireless interconnection revenue and expenses. The interconnection rate paid by fixed-line network service providers to each wireless network service provider was Won 8.55 per minute for 2024.
Wireless-to-Wireless: Interconnection charges also apply to calls between wireless telephone networks in Korea. Under these arrangements, the operator originating the call pays an interconnection charge to the operator terminating the call.
International Calls and International Roaming Arrangements
With respect to international calls, if a call is initiated by the company’s wireless subscribers, the company bills the wireless subscriber for the international charges of KT, LG U+, or SK Broadband, and the company receives interconnection charges from such operators. If an international call is received by its subscriber, KT, LG U+, or SK Broadband pays interconnection charges to the company based on its imputed costs.
To complement the services provided to its subscribers in Korea, the company offers international voice and data roaming services. The company charges its subscribers usage fees for global roaming service and, in turn, pays foreign wireless network operators fees for the corresponding usage of their network.
Competition
Cellular Services
The company’s competitors for subscriber activations include MVNOs, including MVNOs that lease its networks. MVNOs generally provide rate plans that are relatively cheaper than similar rate plans of the wireless network providers from which they lease their networks, including the company.
The company faces competition from KT and LG U+, as well as other platform service providers in its other cellular service businesses. For example, the company’s Smart Home service competes with KT’s Giga IoT Home service and LG U+’s IoT@Home service.
Fixed-Line Telecommunications Services
The company’s fixed-line telephone service competes with KT and LG U+, as well as other providers of VoIP services.
The company’s IPTV and cable TV services compete with other providers of pay TV services, including KT, LG U+, and cable companies.
Furthermore, the company’s IPTV and cable TV services are facing an increasing level of competition from global operators of online video streaming platforms, such as YouTube, Netflix, Disney Plus, and Apple TV, leading domestic video streaming platforms, such as TVING, Wavve (which is seeking to merge with TVING pursuant to a memorandum of understanding entered into in December 2023), Coupang Play, and Watcha, and the video services offered by leading domestic online and mobile search and communications platforms, including NAVER and Kakao, as such services continue to become increasingly popular to serve as a substitute for traditional television programming.
Law and Regulation
The company qualifies as a ‘market-dominating business entity’ under the Fair Trade Act. The company’s licenses permit it to provide cellular services, third generation wireless telecommunications services using wideband code division multiple access (‘WCDMA’) technology, fourth generation wireless telecommunications services using LTE technology, and fifth generation wireless telecommunications services using 5G technology.
The company is required under the Foreign Exchange Transaction Act to file a report with a designated foreign exchange bank or with the Ministry of Economy and Finance (the ‘MOEF’), in connection with any issue of foreign currency denominated securities by it in foreign countries.
History
SK Telecom Co., Ltd. was founded in 1984. The company was incorporated in 1984.
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