Debt and Financial Obligations - As of December 31, 2023, 14.8% of the company's total outstanding long-term debt was denominated in foreign currencies, primarily in Dollars, while most revenue and operating expenses were in Won[362]. - The company has repayment obligations of W1,622.5 billion in 2024 and W2,419.1 billion in 2025 for long-term borrowings and bonds[372]. - Total contractual cash obligations as of December 31, 2023, amounted to W13,555.5 billion, with significant payments due in the next five years[381]. Capital Expenditures - The company's capital expenditures for 2023 totaled W2,973.9 billion, with 46.4% allocated to wireless networks, including 5G and LTE[366][367]. - Planned capital expenditures for 2024 are expected to be similar to 2023, focusing on expanding the 5G network, maintaining LTE, and developing AI-related technologies[371]. - The company expects to spend a similar amount on capital expenditures in 2024 as in 2023, with a focus on AI technology integration across various business areas[371]. Investments and Acquisitions - The company acquired a 100% interest in SK M&Service for W72.9 billion in February 2022 to enhance online distribution capabilities[374]. - In June 2023, the company invested US$100 million in Joby Aviation Inc. to develop emissions-free aerial ridesharing services[375]. Dividends and Cash Flow - Total cash outflows for dividends amounted to W773.8 billion in 2023, down from W904.0 billion in 2022[378]. Defined Benefit Obligations - The present value of defined benefit obligations as of December 31, 2023, was W1,121.7 billion, offset by defined benefit plan assets of W1,292.4 billion, resulting in net defined benefit assets of W170.7 billion[377].

[Resolution to Call the Annual General Meeting of Shareholders](index=2&type=section&id=RESOLUTION%20TO%20CALL%20THE%20ANNUAL%20GENERAL%20MEETING%20OF%20SHAREHOLDERS) The Board resolved to convene the annual general meeting on March 26, 2024, to approve financial statements, amend articles, appoint directors, and set remuneration [Meeting Details and Agenda](index=2&type=section&id=3.%20Agenda) The Board resolved to convene the annual general meeting on March 26, 2024, to approve 2023 financial statements, amend articles, appoint directors, and set remuneration Annual General Meeting Details | Item | Details | | :--- | :--- | | **Date / Time** | March 26, 2024 (Tuesday), 10:00 am (Seoul time) | | **Place** | SUPEX Hall, 4th Floor, SK T-Tower, 65, Eulji-ro, Jung—gu, Seoul, Korea | | **Agenda** | 1. Approval of Financial Statements for the 40th Fiscal Year (2023)<br>2. Amendments to the Articles of Incorporation<br>3. Appointment of Directors (Executive, Non-executive, Independent)<br>4. Appointment of a Member of the Audit Committee<br>5. Approval of the Ceiling Amount of Remuneration for Directors<br>6. Amendments to the Remuneration Policy for Executive Officers | [Approval of Financial Statements for the 40th Fiscal Year (2023)](index=3&type=section&id=1.%20Approval%20of%20Financial%20Statements%20for%20the%2040th%20Fiscal%20Year%20%282023%29) Shareholders will vote on approving the 2023 financial statements, prepared under K-IFRS, with the audit report available in early March 2024 - The company seeks shareholder approval for the financial statements of the **40th fiscal year (2023)**[6](index=6&type=chunk) - The audited financial statements will be publicly available on SK Telecom's and the SEC's websites in early March 2024, with consolidated and separate statements provided in Appendices 1 and 2, respectively[6](index=6&type=chunk) [Amendments to the Articles of Incorporation](index=4&type=section&id=2.%20Amendments%20to%20the%20Articles%20of%20Incorporation) Proposed amendments to the Articles of Incorporation aim to align dividend policies and extend the Board meeting notice period - The company proposes to amend its articles to distribute dividends equally for all shares of the same class, regardless of their issuance dates, aligning with the model articles of the Korea Listed Companies Association[7](index=7&type=chunk) - A key proposed change allows the Board of Directors to set the record date for dividends after the resolution to distribute them, which is intended to enhance dividend predictability for shareholders. The record date must be announced two weeks prior[8](index=8&type=chunk) - The notice period for convening a Board of Directors' meeting is proposed to be extended from two days to at least seven days, with an exception for urgent matters where notice can be given one day prior[8](index=8&type=chunk) [Appointment of Directors](index=6&type=section&id=3.%20Appointment%20of%20Directors) The company proposes appointing four directors, including executive, non-executive, and independent non-executive roles Director Candidates | Name of Candidate | Position | Recommended by | | :--- | :--- | :--- | | Ryu, Young Sang | Executive Director | Board | | Kim, Yang Seob | Executive Director | Board | | Lee, Sung Hyung | Non-executive Director | Board | | Noh, Mi Kyung | Independent Non-executive Director | Independent Director Nomination Committee | [Candidate Details and Recommendations](index=8&type=section&id=E.%20Reasons%20for%20Recommendation%20of%20Candidates%20by%20the%20Board) Candidates are recommended for their expertise in financial performance, AI business expansion, and risk management - Ryu, Young Sang is recommended for reappointment due to his role in improving financial performance and establishing the company's AI Pyramid strategy[13](index=13&type=chunk) - Kim, Yang Seob, a finance expert, is recommended for his capabilities in maintaining financial stability and supporting the expansion of global AI-related businesses[13](index=13&type=chunk) - Noh, Mi Kyung is recommended as an independent director for her expertise in global risk management, which is expected to strengthen the company's practices and support its growth as an AI Company[13](index=13&type=chunk) [Appointment of a Member of the Audit Committee](index=9&type=section&id=4.%20Appointment%20of%20a%20Member%20of%20the%20Audit%20Committee%20%28Noh%2C%20Mi%20Kyung%29) Noh, Mi Kyung is recommended for the audit committee to enhance its professionalism, independence, and management transparency - Noh, Mi Kyung is recommended for the audit committee based on her expertise in finance, accounting, and risk management from her career in the global finance industry[14](index=14&type=chunk) - The Board believes her appointment will enhance the professionalism and independence of the audit committee and improve management transparency[14](index=14&type=chunk) [Approval of the Ceiling Amount of Remuneration for Directors](index=10&type=section&id=5.%20Approval%20of%20the%20Ceiling%20Amount%20of%20Remuneration%20for%20Directors) Shareholders will vote on a proposed KRW 10 billion director remuneration ceiling for 2024, a decrease from the prior year Director Remuneration Comparison | | Fiscal year 2024 (Proposed) | Fiscal year 2023 (Actual) | | :--- | :--- | :--- | | **Number of directors** | 9 | 8 | | **Maximum authorized remuneration** | KRW 10,000,000,000 | KRW 12,000,000,000 | | **Total remuneration paid** | — | KRW 4,138,735,160 | [Amendments to the Remuneration Policy for Executive Officers](index=11&type=section&id=6.%20Amendments%20to%20the%20Remuneration%20Policy%20for%20Executive%20Officers) Amendments to the executive remuneration policy clarify severance pay calculations and introduce a non-compete clause - The primary purpose of the amendment is to change the criteria for calculating severance pay for an executive officer promoted from executive vice president to president[18](index=18&type=chunk) - A new clause stipulates that any severance payment exceeding the statutory amount is considered compensation for non-compete obligations. If this obligation is violated, the executive must return the excess amount as a penalty[16](index=16&type=chunk) - The amendments will take effect on April 1, 2024, with transitional provisions for executives promoted before this date[19](index=19&type=chunk) [Appendix 1: Consolidated Financial Statements (FY 2023)](index=13&type=section&id=Appendix%201.%20Consolidated%20Financial%20Statements) This appendix presents the consolidated financial statements for fiscal year 2023, including financial position, profit or loss, cash flows, and detailed notes [Consolidated Statement of Financial Position](index=14&type=section&id=Consolidated%20Statements%20of%20Financial%20Position) Consolidated total assets decreased to **KRW 30,119 billion** in 2023, while liabilities also decreased, and equity slightly increased Consolidated Financial Position (in millions of KRW) | Account | Dec 31, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | **Total Assets** | 30,119,227 | 31,308,262 | | **Total Liabilities** | 17,890,828 | 19,153,066 | | **Total Shareholder's Equity** | 12,228,399 | 12,155,196 | [Consolidated Statement of Profit or Loss](index=16&type=section&id=Consolidated%20Statements%20of%20Profit%20or%20Loss) Operating revenue increased to **KRW 17,609 billion** in 2023, with operating profit and profit attributable to owners also growing significantly Consolidated Profit or Loss (in millions of KRW, except EPS) | Account | 2023 | 2022 | | :--- | :--- | :--- | | **Operating revenue** | 17,608,511 | 17,304,973 | | **Operating profit** | 1,753,204 | 1,612,070 | | **Profit for the year (attributable to owners)** | 1,093,611 | 912,400 | | **Basic earnings per share (in won)** | 4,954 | 4,118 | [Consolidated Statement of Cash Flows](index=19&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities slightly decreased in 2023, with increased cash usage in investing and financing, leading to a net decrease in cash Consolidated Cash Flows (in millions of KRW) | Activity | 2023 | 2022 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | 4,947,205 | 5,159,317 | | **Net cash used in investing activities** | (3,352,905) | (2,807,795) | | **Net cash used in financing activities** | (2,020,990) | (1,349,882) | | **Net increase (decrease) in cash** | (426,690) | 1,001,640 | | **Cash and cash equivalents at end of year** | 1,454,978 | 1,882,291 | [Notes to the Consolidated Financial Statements](index=21&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) This section details the reporting entity, basis of preparation under K-IFRS, material accounting policies, and changes in consolidation scope [Reporting Entity and Subsidiaries](index=21&type=section&id=1.%20Reporting%20Entity) SK Telecom Co., Ltd. is a Korean cellular service provider controlled by SK Inc., with changes in consolidated subsidiaries in 2023 - SK Inc. is the ultimate controlling entity of SK Telecom Co., Ltd[34](index=34&type=chunk) - In 2023, Global AI Platform Corporation and Global AI Platform Corporation Korea were newly included in the consolidation scope[40](index=40&type=chunk) - SK Telecom Japan Inc. and SK Planet Japan, K. K. were excluded from the consolidation scope in 2023 due to a loss of control[39](index=39&type=chunk) [Basis of Preparation and Accounting Policies](index=30&type=section&id=3.%20Material%20Accounting%20Policies) Financial statements are prepared under K-IFRS, involving estimates, with new standards adopted in 2023 having no material impact, and key revenue recognition policies detailed - The consolidated financial statements were prepared in accordance with International Financial Reporting Standards as adopted by the Republic of Korea (K-IFRS)[43](index=43&type=chunk) - The Group has adopted new and amended standards effective January 1, 2023, including amendments to KIFRS 1001, 1008, and 1012, which had no material impact on the financial statements[57](index=57&type=chunk)[59](index=59&type=chunk) - For contracts with customers that include both handset sales and wireless services, the Group allocates the transaction price to each performance obligation based on their relative stand-alone selling prices. Incremental costs of obtaining a contract, such as commissions, are capitalized and amortized over the expected contract period[180](index=180&type=chunk)[181](index=181&type=chunk)[182](index=182&type=chunk) [Appendix 2: Separate Financial Statements (FY 2023)](index=53&type=section&id=Appendix%202.%20Separate%20Financial%20Statements) This appendix presents the separate financial statements for fiscal year 2023, including financial position, profit or loss, cash flows, and detailed notes [Separate Statement of Financial Position](index=54&type=section&id=Separate%20Statements%20of%20Financial%20Position) Separate total assets decreased to **KRW 24,996 billion** in 2023, while liabilities also decreased, and equity remained stable Separate Financial Position (in millions of KRW) | Account | Dec 31, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | **Total Assets** | 24,995,932 | 26,432,121 | | **Total Liabilities** | 14,559,839 | 16,048,739 | | **Total Shareholder's Equity** | 10,436,093 | 10,383,382 | [Separate Statement of Profit or Loss](index=56&type=section&id=Separate%20Statements%20of%20Profit%20or%20Loss) Separate operating revenue increased to **KRW 12,589 billion** in 2023, with operating profit and profit for the year also growing significantly Separate Profit or Loss (in millions of KRW, except EPS) | Account | 2023 | 2022 | | :--- | :--- | :--- | | **Operating revenue** | 12,589,220 | 12,414,588 | | **Operating profit** | 1,455,870 | 1,321,131 | | **Profit for the year** | 1,059,750 | 869,490 | | **Basic earnings per share (in won)** | 4,798 | 3,921 | [Separate Statement of Cash Flows](index=59&type=section&id=Separate%20Statements%20of%20Cash%20Flows) Separate net cash from operating activities slightly decreased in 2023, with increased cash usage in investing and financing, leading to a net decrease in cash Separate Cash Flows (in millions of KRW) | Activity | 2023 | 2022 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | 4,008,340 | 4,072,281 | | **Net cash used in investing activities** | (2,371,006) | (1,964,831) | | **Net cash used in financing activities** | (2,223,771) | (1,048,738) | | **Net increase (decrease) in cash** | (586,437) | 1,058,712 | | **Cash and cash equivalents at end of year** | 631,066 | 1,217,504 | [Notes to the Separate Financial Statements](index=61&type=section&id=Notes%20to%20the%20Separate%20Financial%20Statements) This section details the separate financial statements prepared under K-IFRS 1027, outlining corporate information and accounting policies for investments - These financial statements are separate financial statements prepared in accordance with KIFRS 1027, Separate Financial Statements[221](index=221&type=chunk) - The Company applies the cost method to investments in subsidiaries, associates, and joint ventures. Dividends from these entities are recognized in profit or loss when the right to receive the dividends is established[235](index=235&type=chunk) [Other Information](index=86&type=section&id=Other%20Information) This section includes disclaimers regarding the unaudited nature of financial statements and forward-looking statements, along with the report's official signatures [Disclaimers and Forward-Looking Statements](index=86&type=section&id=Disclaimer) The report includes disclaimers for unaudited financial statements and forward-looking statements, highlighting inherent risks and uncertainties - The financial statements included in this report are unaudited and subject to change upon completion of the audit process[356](index=356&type=chunk) - The report contains forward-looking statements based on current plans and estimates, which are subject to known and unknown risks and uncertainties that could cause actual results to differ[357](index=357&type=chunk) [Signatures](index=87&type=section&id=SIGNATURES) The report was officially signed on February 22, 2024, by Hee Jun Chung, Vice President of SK Telecom Co., Ltd - The report was signed on February 22, 2024, by Hee Jun Chung, Vice President of SK Telecom Co., Ltd[358](index=358&type=chunk)

SK Telecom Co Ltd (NYSE:SKM) Q4 2023 Earnings Call Transcript February 4, 2024 8:00 PM ET Company Participants Hee Jun Chung - IR Kim Yang-Seob - CFO Choi Hwan-seok - Head of the AI Strategic Kim Young-joo - Head of Enterprise Business Strategy Office Lee Joon-ho - Head of the Corporate Planning Office Kim Yong-hun - Head of AI Assistant Conference Call Participants Seyon Park - Morgan Stanley Joonsop Kim - KB Securities Soojin Kim - Mirae Asset Daewoo Hee Jun Chung Good morning. I am Hee Jun Chung, IRO of ...

Hee Jun Chung - IRO Jin-won Kim - CFO Choi Hwan-seok - Head of Corporate Strategy Office Kim Ji Hoon - Head of Growth Kim Ji Hyung - Head of Integrated Marketing Strategy Office Operator Today, we will first deliver our presentation on major events, quarterly earnings highlights, and business performances, which will be followed by a Q&A session. The call is attended by our executives from relevant business divisions, including Jin-won Kim, CFO of SK Telecom, and we are providing some consecutive interpreta ...

SK Telecom Co., Ltd. (NYSE:SKM) Q2 2023 Earnings Conference Call August 8, 2023 3:00 AM ET Company Participants Hee Jun Chung - Investor Relations Jin-won Kim - Chief Financial Officer Kim Ji-Hoon - Head, Integrated Marketing Strategy Office Kim Myung-Gook - Head, Cloud Business Office Conference Call Participants Seung Woong Lee - eBest Investment & Securities Hoi Jae Kim - Daishin Securities Joonsop Kim - KB Securities Operator Good morning and good evening. First of all, thank you all for joining this co ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 6-K REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE MONTH OF JUNE 2023 Commission File Number: 333-04906 SK Telecom Co., Ltd. (Translation of registrant's name into English) 65, Euljiro, 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 ...

Market Share and Competition - As of December 31, 2022, the collective market share of KT and LG U+ in the wireless subscriber market was approximately 56.8%[27] - The company's market share in the fixed-line telephone and VoIP service market was 15.6% as of December 31, 2022, compared to KT's 55.0% and LG U+'s 18.7%[31] - The market share in the broadband Internet market was 28.5% as of December 31, 2022, compared to KT's 41.3% and LG U+'s 21.0%[31] - The penetration rate for the Korean wireless telecommunications industry was approximately 147.7% as of December 31, 2022, indicating a high saturation level in the market[62] - The company faces increasing competition from MVNOs, which generally offer cheaper rate plans, impacting subscriber activations[28] - The Korean wireless telecommunications market is dominated by three operators: the company, KT, and LG U+, with KT and LG U+ holding market shares of approximately 30.9% and 25.9%, respectively[130] Financial Performance and Investments - Capital expenditures for 2022 amounted to Won 1,837.2 billion, with plans for further investments in 5G network expansion[41] - The company has made significant capital investments in technology upgrades, spending Won 1,850.9 billion in 2021 and Won 1,878.6 billion in 2020[40] - In 2022, the company spent Won 2,908.3 billion on capital expenditures, with similar spending expected in 2023 for projects including 5G network expansion and IoT solutions development[72] - As of December 31, 2022, the company had Won 3,189.3 billion in contractual payment obligations due in 2023, primarily related to debt repayment and lease liabilities[74] - The company is subject to additional regulations as a dominant network service provider, which may adversely affect its competitiveness and profitability[50] Subscriber Growth and Services - As of December 31, 2022, the company had 32.8 million wireless subscribers, representing a market share of 43.2% in the Korean wireless telecommunications sector[122] - The number of wireless subscribers in Korea reached 75.958 million as of December 31, 2022, with a wireless penetration rate of 147.7 subscribers per 100 population[131] - The number of broadband Internet access subscribers increased to approximately 23.5 million by the end of 2022, up from 17.2 million at the end of 2010[135] - The IPTV subscriber base reached approximately 6.5 million as of December 31, 2022, with access to up to 263 high-definition channels[199] - The number of 5G subscribers increased to 13.5 million in 2022, up from 9.9 million in 2021, reflecting a growth rate of approximately 36%[146] Technological Advancements and Innovations - The company aims to provide full nationwide 5G coverage within the next several years, having launched 5G services in April 2019[38] - The company aims to enhance its 5G network and develop new products and services tailored to customer needs, leveraging AI technology and big data analysis[140] - The launch of the AI agent service "A." in May 2022 is expected to fully launch in 2023, enhancing customer interaction and personalization[161] - The company launched its first MEC-based cloud service, "5GX Edge Cloud," in collaboration with Amazon Web Services in December 2020, and has since expanded its cloud services to global telecommunications companies[162] - The company plans to expand its IoT solutions business, having deployed a nationwide high-speed LTE-M network and a low-cost LoRa network to support IoT devices[156] Regulatory and Economic Environment - Regulatory changes may impact the competitive landscape, including potential new entrants into the wireless telecommunications market[31] - The company is subject to significant risks from unfavorable financial and economic developments in Korea, particularly due to the ongoing effects of the COVID-19 pandemic[95] - The Korean economy has shown mixed signs of deterioration and uncertain recovery, influenced by global economic conditions and geopolitical tensions[96] - The MSIT may issue corrective orders if the aggregate foreign shareholding limit is exceeded, impacting the company's ability to operate in new telecommunications businesses[94] Corporate Governance and Shareholding - As of December 31, 2022, SK Inc. owned 30.0% of the total issued common shares of the company[93] - The aggregate foreign shareholding level was approximately 45.6% as of December 31, 2022, which could exceed the 49.0% ceiling if SK Inc. is classified as a foreign shareholder[93][94] - The company is subject to Korean corporate governance standards, which may differ from those in other countries, potentially affecting investor perceptions[121] - The company has not agreed to any restrictions on SK Inc.'s ability to dispose of its shares, which could impact future market conditions[109] Risks and Challenges - Cybersecurity breaches pose risks to the company, potentially leading to legal exposure and damage to its reputation[80] - The company may need to acquire additional bandwidth capacity in the future to meet increasing demand, which could adversely affect its financial condition if not obtained at commercially attractive terms[67] - The company is focused on attracting and retaining qualified technology professionals, as the loss of key personnel could materially impact its operations[68] - The company faces potential litigation risks under the Securities-related Class Action Act of Korea, which allows class action suits for losses incurred from false statements or insider trading[103] Customer Engagement and Retention - The T Membership program aims to enhance subscriber retention by offering various benefits, leveraging the company's large subscriber base[187] - The company operates 907 T Premium Stores as of December 31, 2022, to provide detailed information on subscription services[189] - The company launched a metaverse community platform called "Ifland," which had over 21 million cumulative downloads globally as of December 31, 2022[163] - The "T Universe" subscription service was launched in August 2021, offering various benefits including discounts and access to cloud storage[162]

[Form 6-K Filing Information](index=1&type=section&id=Form%206-K%20Filing%20Information) [Form 6-K Details](index=1&type=section&id=Form%206-K%20Details) This section provides regulatory filing details for the Form 6-K, identifying the registrant and report type - SK Telecom Co, Ltd is filing a Form 6-K report as a foreign private issuer[1](index=1&type=chunk) Form 6-K Details | Detail | Value | | :--- | :--- | | Commission File Number | 333-04906 | | Registrant Name | SK Telecom Co, Ltd | | Address | 65, Euljiro, Jung-gu, Seoul 04539, Korea | | Annual Report Type | Form 20-F | | Filing Month | February 2023 | [Resolution to Call the Annual General Meeting of Shareholders](index=2&type=section&id=RESOLUTION%20TO%20CALL%20THE%20ANNUAL%20GENERAL%20MEETING%20OF%20SHAREHOLDERS) [AGM Details and Agenda Overview](index=2&type=section&id=AGM%20Details%20and%20Agenda%20Overview) The Board of Directors resolved to call the Annual General Meeting of Shareholders for March 28, 2023 AGM Details | Detail | Value | | :--- | :--- | | Date of Board Resolution | February 23, 2023 | | AGM Date / Time | March 28, 2023 (Tuesday), 10:00 am (Seoul time) | | AGM Place | SUPEX Hall, 4th Floor, SK T-Tower, 65, Eulji-ro, Jung-gu, Seoul, Korea | - The AGM agenda includes approval of financial statements, grant of stock options, appointment of directors and audit committee members, and approval of director remuneration[7](index=7&type=chunk) - The place and time of the AGM may change due to emergencies, such as COVID-19[6](index=6&type=chunk) [Approval of Financial Statements for the 39th Fiscal Year (2022)](index=3&type=section&id=1.%20Approval%20of%20Financial%20Statements%20for%20the%2039th%20Fiscal%20Year%20(2022)) Shareholders are requested to approve the 2022 financial statements prepared under Korean IFRS - The financial statements for the 39th fiscal year (2022) were prepared in accordance with **Korean International Financial Reporting Standards**[9](index=9&type=chunk) - The audit report from independent auditors will be uploaded to SK Telecom's website and the U.S. SEC website in **early- to mid-March 2023**[9](index=9&type=chunk) - Consolidated Financial Statements are in Appendix 1 and Separate Financial Statements are in Appendix 2[9](index=9&type=chunk) [Grant of Stock Options](index=4&type=section&id=2.%20Grant%20of%20Stock%20Options) The Company proposes granting 190,000 stock options to align management and shareholder interests - The purpose of the stock option grant is to maximize company value by aligning management and shareholder interests and encouraging long-term value enhancement[10](index=10&type=chunk) Stock Option Grant Details | Detail | Value | | :--- | :--- | | Type and Number of Shares Issuable | 190,000 registered common shares | | Grant Date | March 28, 2023 | | Exercise Period | March 29, 2025 – March 28, 2028 | | Exercise Price | Arithmetic mean of volume weighted average closing prices of two-month, one-month and one-week periods prior to grant date | | Employment Condition | Stock options cancelled if recipient not employed for at least two years from grant date | Previously Granted Stock Options (as of December 31, 2022) | Year | Grant date | Number of recipients | Type of shares | Number of shares issuable | Number of shares issued upon exercise | expired stock options | Remaining number of shares issuable | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | 2020 | March 26 | 10 | Common shares | 387,624 | — | 11,314 | 376,310 | | 2021 | March 25 | 13 | Common shares | 101,060 | — | 13,270 | 87,790 | | 2022 | March 25 | 12 | Common shares | 415,716 | — | 10,737 | 404,979 | | Total | | 35 | Common shares | 904,400 | — | 35,321 | 869,079 | [Appointment of Independent Non-executive Directors](index=6&type=section&id=3.%20Appointment%20of%20Independent%20Non-executive%20Directors) The Board recommends three candidates for appointment as independent non-executive directors Director Candidate Details | Name of Candidate | Date of Birth | Candidate for independent non-executive director | Relationship with largest shareholder | Recommended by | | :--- | :--- | :--- | :--- | :--- | | Kim, Yong-Hak | January 17, 1953 | Yes | Independent non-executive director of affiliate (SK Telecom) | Independent Director Nomination Committee | | Kim, Junmo | September 7, 1976 | Yes | Independent non-executive director of affiliate (SK Telecom) | Independent Director Nomination Committee | | Oh, Haeyun | November 13, 1974 | Yes | None | Independent Director Nomination Committee | - **Kim, Yong-Hak** is expected to contribute expertise in sociology, leadership, and social values, enhancing corporate governance[17](index=17&type=chunk)[18](index=18&type=chunk) - **Kim, Junmo**, an AI expert, is expected to provide professional advice on AI and digital transformation businesses and strategies[17](index=17&type=chunk)[18](index=18&type=chunk) - **Oh, Haeyun**, an AI-based natural language processing expert, will offer insights on AI vision, directions, and ethics issues[18](index=18&type=chunk) [Appointment of Members of the Audit Committee](index=9&type=section&id=4.%20Appointment%20of%20Members%20of%20the%20Audit%20Committee) The Board recommends two candidates for appointment to the Audit Committee to enhance its independence Audit Committee Candidate Details | Name of Candidate | Date of Birth | Candidate for independent non-executive director | Relationship with largest shareholder | Recommended by | | :--- | :--- | :--- | :--- | :--- | | Kim, Yong-Hak | January 17, 1953 | Yes | Independent non-executive director of affiliate (SK Telecom) | Independent Director Nomination Committee | | Oh, Haeyun | November 13, 1974 | Yes | None | Independent Director Nomination Committee | - **Kim, Yong-Hak** is recommended for his experience in institution management and deep understanding of management issues, contributing to audit committee independence and management transparency[21](index=21&type=chunk) - **Oh, Haeyun** is recommended for her AI expertise and background in overseeing AI ethics guidelines, enhancing the Board's independence and professionalism through technology diagnosis[20](index=20&type=chunk)[21](index=21&type=chunk) [Approval of the Ceiling Amount of Remuneration for Directors](index=11&type=section&id=5.%20Approval%20of%20the%20Ceiling%20Amount%20of%20Remuneration%20for%20Directors) Shareholders are asked to approve the maximum authorized remuneration for directors for fiscal year 2023 Director Remuneration Details | Detail | Fiscal year 2023 | Fiscal year 2022 | | :--- | :--- | :--- | | Number of directors | 8 | 8 | | Number of independent non-executive directors | 5 | 5 | | Total amount of remuneration paid to directors | — | Won 3,486,749,320 | | Total amount or maximum authorized amount of remuneration for directors | Won 12,000,000,000 | Won 12,000,000,000 | [Consolidated Financial Statements (Appendix 1)](index=12&type=section&id=Appendix%201.%20Consolidated%20Financial%20Statements) [Consolidated Statements of Financial Position](index=13&type=section&id=Consolidated%20Statements%20of%20Financial%20Position) The Group's financial position shows slightly increased assets and liabilities but decreased shareholder's equity in 2022 Consolidated Financial Position | Metric | December 31, 2022 (Millions of Won) | December 31, 2021 (Millions of Won) | | :--- | :--- | :--- | | Total Assets | W 31,308,262 | W 30,911,277 | | Total Liabilities | W 19,153,066 | W 18,576,139 | | Total Shareholder's Equity | W 12,155,196 | W 12,335,138 | [Consolidated Statements of Income](index=15&type=section&id=Consolidated%20Statements%20of%20Income) The Group reported increased revenue and operating profit, but a significant decrease in net profit for 2022 Consolidated Income Statement | Metric | 2022 (Millions of Won) | 2021 (Millions of Won) | | :--- | :--- | :--- | | Revenue | W 17,304,973 | W 16,748,585 | | Operating Profit | W 1,612,070 | W 1,387,162 | | Profit from continuing operations | W 947,831 | W 1,271,395 | | Profit from discontinued operations, net of taxes | — | W 1,147,594 | | Profit for the year | W 947,831 | W 2,418,989 | | Basic earnings per share (in won) | W 4,118 | W 7,191 | [Consolidated Statements of Comprehensive Income](index=16&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) The Group's total comprehensive income for 2022 decreased significantly due to valuation losses on financial assets Consolidated Comprehensive Income | Metric | 2022 (Millions of Won) | 2021 (Millions of Won) | | :--- | :--- | :--- | | Profit for the year | W 947,831 | W 2,418,989 | | Other comprehensive income (loss), net of taxes | W (306,226) | W 1,362,192 | | Total comprehensive income | W 641,605 | W 3,781,181 | - A significant valuation loss on financial assets at fair value through other comprehensive income (**W 491,853 million**) contributed to the decrease in total comprehensive income in 2022[28](index=28&type=chunk) [Consolidated Statements of Changes in Equity](index=17&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Equity) The equity statements reflect impacts from profit, dividends, and a significant spin-off transaction in 2021 Consolidated Changes in Equity | Equity Component | Balance, January 1, 2021 (Millions of Won) | Balance, December 31, 2021 (Millions of Won) | Balance, December 31, 2022 (Millions of Won) | | :--- | :--- | :--- | :--- | | Share capital | W 44,639 | W 30,493 | W 30,493 | | Capital surplus and others | W 677,203 | W (11,623,726) | W (11,567,117) | | Retained earnings | W 22,981,913 | W 22,437,341 | W 22,463,711 | | Reserves | W 40,139 | W 735,238 | W 391,233 | | Equity attributable to owners of the Parent Company | W 23,743,894 | W 11,579,346 | W 11,318,320 | | Non-controlling interests | W 652,349 | W 755,792 | W 836,876 | | Total Shareholder's Equity | W 24,396,243 | W 12,335,138 | W 12,155,196 | - The **spin-off in 2021** significantly impacted equity, reducing total shareholder's equity by **W 15,005,397 million**[30](index=30&type=chunk) - Annual dividends paid were **W 361,186 million in 2022** and **W 641,944 million in 2021**[30](index=30&type=chunk) [Consolidated Statements of Cash Flows](index=18&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) The Group's cash and cash equivalents increased in 2022, driven by strong operating cash flow Consolidated Cash Flows | Cash Flow Activity | 2022 (Millions of Won) | 2021 (Millions of Won) | | :--- | :--- | :--- | | Net cash provided by operating activities | W 5,159,317 | W 5,031,279 | | Net cash used in investing activities | W (2,807,795) | W (3,486,189) | | Net cash used in financing activities | W (1,349,882) | W (2,053,611) | | Net increase (decrease) in cash and cash equivalents | W 1,001,640 | W (508,521) | | Cash and cash equivalents at end of the year | W 1,882,291 | W 872,731 | - Cash generated from operating activities increased to **W 5,785,375 million in 2022** from W 5,324,073 million in 2021[32](index=32&type=chunk) - Proceeds from issuance of debentures were **W 1,200,122 million in 2022**, up from W 873,245 million in 2021[33](index=33&type=chunk) [Notes to the Consolidated Financial Statements](index=20&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) This section details the reporting entity, basis of preparation, and significant accounting policies [Reporting Entity and Subsidiaries](index=20&type=section&id=1.%20Reporting%20Entity) The company provides wireless telecommunications services in Korea and underwent a spin-off in 2021 - SK Telecom Co, Ltd is a Korean wireless telecommunications service provider, with **SK Inc** as its ultimate controlling entity[35](index=35&type=chunk)[36](index=36&type=chunk) Shareholder Structure | Shareholder | Number of shares | Percentage of total shares issued (%) | | :--- | :--- | :--- | | SK Inc | 65,668,397 | 30.01 | | National Pension Service | 16,846,066 | 7.69 | | Institutional investors and other shareholders | 131,671,103 | 60.17 | | Kakao Investment Co, Ltd | 3,846,487 | 1.76 | | Treasury shares | 801,091 | 0.37 | | Total | 218,833,144 | 100.00 | - In 2022, **SAPEON Inc** and **SK m&service Co, Ltd** were newly included in consolidation, while Broadband Nowon Co, Ltd was excluded due to merger[38](index=38&type=chunk)[39](index=39&type=chunk)[44](index=44&type=chunk) [Basis of Preparation](index=27&type=section&id=2.%20Basis%20of%20Preparation) The financial statements are prepared under Korean IFRS on a historical cost basis with some exceptions - Consolidated financial statements are prepared in accordance with **Korean International Financial Reporting Standards (KIFRS)**[48](index=48&type=chunk) - Statements are prepared on a historical cost basis, with exceptions for fair value measurements of certain financial instruments and liabilities[50](index=50&type=chunk)[52](index=52&type=chunk) - The preparation requires management to make judgments, estimates, and assumptions, which are reviewed on an ongoing basis[50](index=50&type=chunk)[51](index=51&type=chunk) [Significant Accounting Policies](index=29&type=section&id=3.%20Significant%20Accounting%20Policies) This section details the significant accounting policies applied by the Group for financial reporting - The Group applies the **acquisition method** for business combinations, testing goodwill annually for impairment[66](index=66&type=chunk)[69](index=69&type=chunk) - Financial assets are classified and measured at **FVTPL, FVOCI, or amortized cost** based on business model and contractual cash flow characteristics[82](index=82&type=chunk)[84](index=84&type=chunk) - Property and equipment are depreciated on a **straight-line basis** over estimated useful lives (e.g, 15-40 years for buildings, 3-15 years for machinery)[114](index=114&type=chunk)[115](index=115&type=chunk) - Intangible assets are amortized on a **straight-line basis** over estimated useful lives (e.g, 2.4-10 years for frequency usage rights)[120](index=120&type=chunk)[121](index=121&type=chunk) - The Group recognizes **right-of-use assets and lease liabilities** for leases, depreciating assets over the lease term[137](index=137&type=chunk)[139](index=139&type=chunk)[140](index=140&type=chunk) - Revenue from wireless telecommunications services is recognized over the contract term, while handset sale revenue is recognized upon delivery[184](index=184&type=chunk) [Separate Financial Statements (Appendix 2)](index=53&type=section&id=Appendix%202.%20Separate%20Financial%20Statements) [Separate Statements of Financial Position](index=54&type=section&id=Separate%20Statements%20of%20Financial%20Position) The Company's separate financial position shows slightly increased assets and liabilities but decreased total equity in 2022 Separate Financial Position | Metric | December 31, 2022 (Millions of Won) | December 31, 2021 (Millions of Won) | | :--- | :--- | :--- | | Total Assets | W 26,432,121 | W 26,389,065 | | Total Liabilities | W 16,048,739 | W 15,526,209 | | Total Shareholder's Equity | W 10,383,382 | W 10,862,856 | [Separate Statements of Income](index=56&type=section&id=Separate%20Statements%20of%20Income) The Company reported increased revenue and operating profit, but a decrease in net profit for 2022 Separate Income Statement | Metric | 2022 (Millions of Won) | 2021 (Millions of Won) | | :--- | :--- | :--- | | Revenue | W 12,414,588 | W 12,102,830 | | Operating Profit | W 1,321,131 | W 1,114,323 | | Profit for the year | W 869,490 | W 1,073,823 | | Basic earnings per share (in won) | W 3,921 | W 3,183 | [Separate Statements of Comprehensive Income](index=57&type=section&id=Separate%20Statements%20of%20Comprehensive%20Income) The Company's total comprehensive income for 2022 decreased significantly due to valuation losses on financial assets Separate Comprehensive Income | Metric | 2022 (Millions of Won) | 2021 (Millions of Won) | | :--- | :--- | :--- | | Profit for the year | W 869,490 | W 1,073,823 | | Other comprehensive income (loss), net of taxes | W (499,714) | W 297,192 | | Total comprehensive income | W 369,776 | W 1,371,015 | - A significant valuation loss on financial assets at fair value through other comprehensive income (**W 481,023 million**) contributed to the decrease in total comprehensive income in 2022[211](index=211&type=chunk) [Separate Statements of Changes in Equity](index=58&type=section&id=Separate%20Statements%20of%20Changes%20in%20Equity) The equity statements reflect impacts from profit, dividends, and a significant spin-off transaction in 2021 Separate Changes in Equity | Equity Component | Balance, January 1, 2021 (Millions of Won) | Balance, December 31, 2021 (Millions of Won) | Balance, December 31, 2022 (Millions of Won) | | :--- | :--- | :--- | :--- | | Share capital | W 44,639 | W 30,493 | W 30,493 | | Capital surplus and others | W 289,134 | W (4,576,271) | W (4,506,693) | | Retained earnings | W 16,684,640 | W 14,770,618 | W 14,691,461 | | Reserves | W 331,445 | W 638,016 | W 168,121 | | Total Shareholder's Equity | W 17,349,858 | W 10,862,856 | W 10,383,382 | - The **spin-off in 2021** significantly impacted equity, reducing total shareholder's equity by **W 6,901,907 million**[212](index=212&type=chunk) - Annual dividends paid were **W 361,186 million in 2022** and **W 641,944 million in 2021**[212](index=212&type=chunk) [Separate Statements of Cash Flows](index=59&type=section&id=Separate%20Statements%20of%20Cash%20Flows) The Company's cash and cash equivalents increased in 2022, driven by strong operating cash flow Separate Cash Flows | Cash Flow Activity | 2022 (Millions of Won) | 2021 (Millions of Won) | | :--- | :--- | :--- | | Net cash provided by operating activities | W 4,072,281 | W 3,919,829 | | Net cash used in investing activities | W (1,964,831) | W (2,251,647) | | Net cash used in financing activities | W (1,048,738) | W (1,838,576) | | Net increase (decrease) in cash and cash equivalents | W 1,058,712 | W (170,394) | | Cash and cash equivalents at end of the year | W 1,217,504 | W 158,823 | - Cash generated from operating activities increased to **W 4,554,517 million in 2022** from W 4,021,672 million in 2021[213](index=213&type=chunk) - Proceeds from issuance of debentures were **W 1,050,820 million in 2022**, up from W 507,876 million in 2021[214](index=214&type=chunk) [Notes to the Separate Financial Statements](index=61&type=section&id=Notes%20to%20the%20Separate%20Financial%20Statements) This section details the reporting entity, basis of preparation, and significant accounting policies [Reporting Entity](index=61&type=section&id=1.%20Reporting%20Entity) The company provides wireless telecommunications services in Korea and completed a spin-off in 2021 - SK Telecom Co, Ltd is a Korean wireless telecommunications service provider, incorporated in March 1984[215](index=215&type=chunk) Shareholder Structure | Shareholder | Number of shares | Percentage of total shares issued (%) | | :--- | :--- | :--- | | SK Inc | 65,668,397 | 30.01 | | National Pension Service | 16,846,066 | 7.69 | | Institutional investors and other shareholders | 131,671,103 | 60.17 | | Kakao Investment Co, Ltd | 3,846,487 | 1.76 | | Treasury shares | 801,091 | 0.37 | | Total | 218,833,144 | 100.00 | - The company completed the spin-off of its investment businesses in semiconductor, New ICT, and other areas on **November 1, 2021**[216](index=216&type=chunk) [Basis of Preparation](index=61&type=section&id=2.%20Basis%20of%20Preparation) The separate financial statements are prepared under KIFRS 1027 using the cost method for investments - Separate financial statements are prepared in accordance with **KIFRS 1027, Separate Financial Statements**[218](index=218&type=chunk) - Investments in subsidiaries, associates, and joint ventures are accounted for at **cost less impairment**[218](index=218&type=chunk) - Statements are prepared on a historical cost basis, with exceptions for fair value measurements of certain financial instruments and liabilities[219](index=219&type=chunk) [Significant Accounting Policies](index=64&type=section&id=3.%20Significant%20Accounting%20Policies) This section details the significant accounting policies applied for the separate financial statements - The Company applies the **cost method** to investments in subsidiaries, associates, and joint ventures[231](index=231&type=chunk) - Financial assets are classified and measured at **FVTPL, FVOCI, or amortized cost** based on business model and contractual cash flow characteristics[238](index=238&type=chunk)[241](index=241&type=chunk) - Property and equipment are depreciated on a **straight-line basis** over estimated useful lives (e.g, 15-30 years for buildings, 3-8 years for machinery)[268](index=268&type=chunk)[270](index=270&type=chunk) - Intangible assets are amortized on a **straight-line basis** over estimated useful lives (e.g, 2.4-10 years for frequency usage rights)[274](index=274&type=chunk)[275](index=275&type=chunk) - The Company recognizes **right-of-use assets and lease liabilities** for leases, depreciating assets over the lease term[289](index=289&type=chunk)[290](index=290&type=chunk)[291](index=291&type=chunk) - Revenue from wireless telecommunications services is recognized over the contract term, while handset sale revenue is recognized upon delivery[330](index=330&type=chunk) [Disclaimers and Signatures](index=88&type=section&id=Disclaimer) [Financial Statement Disclaimer](index=88&type=section&id=Financial%20Statement%20Disclaimer) The included financial statements are unaudited and subject to the independent audit process - The consolidated and separate financial statements are **unaudited** and subject to the audit process[348](index=348&type=chunk) - Audited financial statements will be available in future filings with the U.S. Securities and Exchange Commission[348](index=348&type=chunk) [Forward-Looking Statement Disclaimer](index=88&type=section&id=Forward-Looking%20Statement%20Disclaimer) The report contains forward-looking statements that involve risks and uncertainties - The material contains forward-looking statements based on current plans, estimates, and projections[349](index=349&type=chunk) - These statements involve known and unknown risks, uncertainties, and other factors that may cause actual results to differ materially[349](index=349&type=chunk) - The Company undertakes no obligation to update publicly any forward-looking statements in light of new information or future events[349](index=349&type=chunk) [Signatures](index=89&type=section&id=SIGNATURES) This section confirms the official signing and submission of the Form 6-K report - The report was duly signed on behalf of SK Telecom Co, Ltd by **Hee Jun Chung, Vice President**[350](index=350&type=chunk) - The signing date for the Form 6-K report was **February 24, 2023**[350](index=350&type=chunk)

Financial Data and Key Metrics Changes - Consolidated revenue for fiscal year 2022 was KRW 17,305 billion, an increase of 3.3% year-on-year, while operating income rose to KRW 1,612.1 billion, up 16.2% year-on-year [7] - Net income recorded at KRW 947.8 billion, impacted by a decrease in equity method gains following the spinoff in 2021 [8] - Non-consolidated revenue grew 2.6% year-on-year to KRW 12,414.6 billion, with operating income and net income reported at KRW 1,321.1 billion and KRW 869.5 billion respectively [8] Business Line Data and Key Metrics Changes - The number of 5G subscribers reached 13.39 million, accounting for over 50% of total subscribers, with expectations to reach 80% by 2025 [20] - Pay TV subscribers totaled 9.32 million, supported by synergies between SK Telecom and SK Broadband [21] - The data center business saw over 30% revenue growth year-on-year due to increased utilization rates [17] - The cloud business experienced twofold revenue growth year-on-year, driven by demand for cloud migration [18] Market Data and Key Metrics Changes - Cumulative downloads for ifland reached 21.27 million by the end of 2022, with over 10% of total MAU in December coming from overseas [15] - T Universe became Korea's leading subscription service with an average MAU of over 1 million and annual GMV of approximately KRW 570 billion in 2022 [16] Company Strategy and Development Direction - The company aims to transform into a differentiated AI company, focusing on AI technology and innovative services [6][10] - Plans to launch A., an AI service based on GPT-3 technology, officially within the year, enhancing its functionalities [11][12] - The UAM business is targeted for commercialization in 2025, with efforts to secure competitiveness through partnerships [14] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential for growth in the MNO business despite concerns over revenue slowdown, citing ongoing migration from LTE to 5G [38] - The company plans to maintain a stable dividend payout and is considering share buybacks as part of its shareholder return policy [33][36] - Management acknowledged macroeconomic uncertainties but emphasized the importance of maintaining growth in new business areas [25] Other Important Information - The total dividend for 2022 was set at KRW 3,320, with KRW 2,490 already paid out and KRW 830 for Q4 pending approval [23] - The company projects consolidated revenue for 2023 to be KRW 17,800 billion, an increase of approximately 3% year-on-year [24] Q&A Session Summary Question: Outlook for MNO revenue and marketing expenses - Management indicated that while 5G subscribers have reached over 50%, there is still potential for growth in the MNO business due to price options and migration trends [38] Question: Shareholder return policy and dividend outlook - Management stated that the 2023 dividend payout is subject to quarterly performance and emphasized a commitment to maintaining shareholder returns [31][33] Question: Response to MVNO market growth - Management noted that the increase in MVNO market share includes IoT lines and emphasized the importance of customer service differentiation to retain MNO subscribers [42] Question: Demand outlook for data centers - Management acknowledged that increased utilization of AI engines like ChatGPT will likely lead to higher demand for data centers in the long term [62] Question: Business models for UAM - Management indicated that specific business models for UAM services are still under development, with ongoing consultations with partners [78]

AIVERSE Business Highlights | --- | --- | --- | --- | --- | --- | --- | --- | |----------------------|-----------|-------|----------------|-------|---------------------------------------------|-------|-------------------| | Subscription \n120 | GMV \n140 | 150 | (KRW bn) \n155 | 1.0 | Subscription subscribers (T universe) \n1.2 | 1.4 | (million) \n+ 1.6 | | 1Q22 | 2Q22 | 3Q22 | 4Q22 | 1Q22 | 2Q22 | 3Q22 | 4Q22 | | | | | | | | | | | ifland MAU | | | (million) | | ifland cumulative downloads | | (million) | | ...