SK Telecom Q2 2025 Earnings Call Transcript

Quartr
Provided by Quartr
August 6, 2025

Key Takeaways

  • Neutral Sentiment: SK Telecom issued a formal apology and launched an accountability and commitment program, including free security solutions and a KRW700 billion investment over five years to strengthen its cybersecurity framework.
  • Negative Sentiment: Q2 revenue fell 1.9% to KRW43.8 trillion and operating income plunged 37.1% year-on-year, while net income collapsed 76.2%, impacted by subscriber losses and incident-related costs.
  • Negative Sentiment: The company cut its full-year revenue guidance from KRW17.8 trillion to KRW17 trillion and expects significantly lower operating profit as incident response measures weigh on 2025 earnings.
  • Positive Sentiment: The AI business showed resilience, with AIDC revenue up 13.3% and AIX up 15.3%, and SK Telecom plans to partner with AWS to build Korea’s largest AI data center in Ulsan targeting over 300 MW capacity and KRW1 trillion annual sales by 2030.
  • Neutral Sentiment: The board approved a Q2 dividend per share of KRW831, while future payouts will be decided based on full-year earnings visibility and ongoing shareholder return policy reviews.
AI Generated. May Contain Errors.
Earnings Conference Call
SK Telecom Q2 2025
00:00 / 00:00

There are 7 speakers on the call.

Speaker 2

Good afternoon, I am Hee Jun Jung, IRO of SK Telecom. Let us begin the earnings conference call for the second quarter of 2025. Today, we will first deliver a presentation on the financial and business highlights, followed by a Q&A session. Please note that all forward-looking statements are subject to change depending on various factors such as market and management situations. Let me now present our CFO.

Speaker 5

안녕하십니까, SK Telecom CFO 김양섭입니다.

Speaker 2

Good afternoon, this is Yang-Seob Kim, CFO of SK Telecom.

Speaker 5

our cybersecurity incident were announced in early July. SK Telecom takes the results of the investigation seriously and sincerely apologizes for causing concern to our customers and investors.

Speaker 2

Results of the joint public-private investigation into SK Telecom's cybersecurity incident were announced in early July. SK Telecom takes the findings of the investigation very seriously, and we sincerely apologize to our customers and investors for the concern we have caused.

Speaker 5

Innovation Special Committee. Above all, as a company responsible for the daily lives of customers, we deeply considered how to convey our desire to continue to be with our customers in the future, and through this process, we announced the Accountability and Commitment Program.

Speaker 2

The executives and employees of SK Telecom have taken seriously our customers' voices that we have gathered on the ground after the incident, and carefully considered the advice and recommendations of SK Telecom's Customer Trust Committee and SK Group's Special Committee on Information Protection Innovation. Above all, as a company responsible for our customers' daily lives, we have given careful consideration to convey our desire to continue to be with them, and through this process, we have announced the Accountability and Commitment Program.

Speaker 5

future. We have also prepared the Information Protection Innovation Plan, which includes an investment of ₩700 billion over the next five years to establish a world-class information protection system. In addition, for customers who trusted and waited for the company, we are implementing the Customer Appreciation Package, which includes a 50% discount on August telecom fees, an additional 50GB of data per month until the end of the year, and a team membership relay discount.

Speaker 2

We have strengthened the Customer Assurance Package, which includes the provision of a mobile device security solution free of charge to all subscribers to prevent any secondary damage resulting from the incident and protect against sophisticated cybersecurity threats in the future. We have developed the Information Protection Innovation Plan, where ₩700 billion will be invested over the next five years to build a world-class information protection system. In addition, we have prepared the Customer Appreciation Package to express our appreciation to our customers for their loyalty, including 50% tariff discounts for August, additional 50GB of data every month until the end of the year, and team membership discounts and benefits.

Speaker 5

전 고객 대상 유심 교체, 책임과 약속 프로그램, 그리고 약정 해지 위약금 면제 등으로 올해 일시적인 실적 영향은 불가피할 것으로 보입니다. 하지만 중장기적인 관점에서 볼 때, 이러한 노력을 통해 회사의 근간인 고객의 신뢰를 회복하는 것이 무엇보다 중요하다고 믿고 있으며, 이를 통해 본업의 펀더멘탈을 가지고 궁극적으로 기업 가치를 향상시키도록 하겠습니다.

Speaker 2

Inevitably, our 2025 earnings will be temporarily affected by the measures that we've been taking to respond to the incident, including using replacements for all subscribers, the Accountability and Commitment Program, and M&O contract cancellation fee waivers. However, from the medium to long-term perspective, we believe that our highest priority is to restore the trust of the customers, which is the foundation of our business, through these efforts. We are determined to take this as an opportunity to strengthen our business fundamentals and ultimately enhance corporate value.

Speaker 5

financial results for the second quarter of 2025.

Speaker 2

Let me now report on the consolidated financial results for the second quarter of 2025.

Speaker 5

매출은 ₩4.3388 trillion을 기록하였습니다. 사이버 침해 사고 및 고객 신규 모집 중단에 따른 가입자 순감으로 이동 전화 매출이 하락했고, 2023년 말 일부 자회사 매각에 따른 영향도 더해져 전년 동기 대비 1.9% 감소했습니다. 참고로 Customer Appreciation Package 시행에 따른 통신 요금 50% 할인, 팀 멤버십 할인 등과 관련된 매출 차감은 실제 제공 시점인 3분기 및 4분기에 걸쳐 반영될 예정입니다.

Speaker 2

Consolidated revenue posted ₩4,338.8 billion. M&O revenue fell due to net subscriber losses on the back of the cybersecurity incident and suspension of new subscriber sign-ups. With the additional impact of sales of certain subsidiaries at the end of last year, the consolidated revenue saw a decline of 1.9% year-on-year. The impact of the Customer Appreciation Package on earnings, including 50% tariff discounts and team membership discounts, will be reflected in Q3 and Q4 when these benefits are provided.

Speaker 5

the case of USIM replacement costs, in accordance with accounting principles, the total theoretical cost was reflected in the second quarter under the conservative assumption that all customers could replace their USIMs. In addition, including compensation for agency losses, approximately ₩250 billion in one-off costs occurred.

Speaker 2

Operating income posted ₩338.3 billion, down 37.1% year-on-year. As for using replacement costs, according to accounting principles, theoretical maximum costs were reflected in the second quarter, based on a conservative assumption that all customers could request using replacements. In addition, one-off costs totaling approximately ₩250 billion incurred in the second quarter, including lost compensation for authorized dealers.

Speaker 5

for the period decreased by 76.2% year-on-year to ₩83.2 billion.

Speaker 2

Net income posted ₩83.2 billion, down 76.2% year-on-year.

Speaker 5

the progress by business segment.

Speaker 2

Next, let me report on business updates.

Speaker 5

over a month. The number of 5G subscribers was 17.02 million, a decrease of approximately 220,000 compared to the previous quarter, and in connection with this, the number of high-speed internet and Pay TV services subscribers also declined.

Speaker 2

Sixth, the mobile business saw a decline in the subscriber base due to the impact of the cybersecurity incident and suspension of new subscriber acquisition for more than a month. The number of 5G subscribers declined by approximately 220,000 quarter on quarter to 17.02 million, accompanied by the loss in the broadband and IPTV subscribers.

Speaker 5

AI 사업은 전년 동기 대비 13.9% 성장하며 통신 매출 하락을 일부 상쇄해 주었습니다. AI DC 사업은 가동률 상승에 따라 전년 동기 대비 13.3% 성장한 ₩108.7 billion의 매출을 달성했고, AIX 사업은 B2B 솔루션 판매 증가로 전년 동기 대비 15.3% 성장한 ₩46.8 billion의 매출을 기록했습니다. 7월 말 누적 가입자 1 million을 돌파한 A-Dot은 A-Dot 노트와 브리핑 베타 서비스를 출시하며 유료화의 기반을 만들어 가고 있습니다.

Speaker 2

The AI business revenue grew 13.9% year-on-year, partially offsetting the drop in telecom revenue. AI DC revenue posted ₩108.7 billion, up 13.3% year-on-year, thanks to the increase in data center utilization rates. AIX revenue grew 15.3% year-on-year to ₩46.8 billion on the back of the increase in B2B solution sales. With the cumulative subscribers surpassing the 10 million mark at the end of July, A-Dot is building a basis for monetization by launching new features such as A-Dot Note and Briefing Beta Service.

Speaker 5

특히 지난 6월 당사는 AWS, SK Group 관계자 등과 함께 하이퍼스케일 급 AI DC 건립 계획을 발표했습니다. SK Group의 풍부한 부지와 전력이 확보된 울산 지역에서 글로벌 1위 클라우드 기업 AWS와 함께 국내 최대 최초의 AI 전용 데이터 센터를 건립함으로써 AI 인프라 슈퍼 하이웨이의 핵심 거점을 확보할 것입니다.

Speaker 2

In June, SK Telecom announced a plan to establish a hyperscale AI data center together with AWS and SK Group affiliates. In the Ulsan region, where SK Group has secured sufficient land and electricity, we will build Korea's first and largest AI data center with the world's largest cloud company, AWS, to secure a hub for AI infrastructure superhighway.

Speaker 5

Seoul Guro data center and others, SK Telecom will secure a total data center capacity of over 300 MW by 2030. Following the increase in utilization rates, it is expected that the data centers alone will generate annual revenue of approximately ₩1 trillion.

Speaker 2

We aim to start the operation of Ulsan AI DC in 2027. Together with the data center in Seoul, we will secure a combined capacity of over 300 MW by 2030. In the future, data centers alone are expected to generate approximately ₩1 trillion of annual sales following the increase in their utilization rates.

Speaker 5

its core telecommunications business, but also continue to drive growth in the AI sector and pursue profitable AI without wavering.

Speaker 2

SK Telecom will review and strengthen its core telecom business while continuing to grow its AI business and generate profits through AI.

Speaker 5

of Directors, and the record date for the dividend is August 31.

Speaker 2

Finally, the board of directors resolved to set the second quarter DPS at ₩830 with the record date of August 31.

Speaker 5

for the continued interest and warm support of investors and analysts in the changes and leap forward of SK Telecom as we start anew. Thank you.

Speaker 2

SK Telecom is firmly committed to facing the cybersecurity incident with a clear head and unwavering resolve, and making thorough improvements. We ask for your continued interest and warm support of investors and analysts as we embark on a new chapter of growth and transformation with a renewed sense of purpose. Thank you.

Speaker 5

we will now begin the Q&A session.

Speaker 2

We would now like to begin the Q&A session.

Speaker 6

지금부터 질의응답을 시작하겠습니다. 질문을 하실 분은 전화기 버튼의 [1]번을 누르시기 바랍니다. 질문을 취소하시려면 [2]번을 누르시면 됩니다.

Speaker 2

Now the Q&A session will begin. Please press *1, that is *1, if you have any questions. Questions will be taken according to the order you have pressed the number *1. For cancellation, please press *2, that is *2 on your phone.

Speaker 6

be from Hyeje Kim at Daishin Securities.

Speaker 2

The first question will be provided by Hoji Kim from Daishin Securities. Please go ahead with your question.

Speaker 4

안녕하십니까, 대신증권 김혜제입니다. 두 가지 질문 드리겠습니다. 이번 사이버 침해 사고 관련해서 조치 현황하고 향후 재발 방지 대책에 대해서 조금 더 구체적인 설명 부탁드리고요. 또 관련해서 재무적인 임팩트에 대한 세부 내역하고 연간 실적 전망도 한 번 설명 부탁드리겠습니다. 감사합니다.

Speaker 2

I'm Kim Hye-Jae from Daishin Securities. I would like to ask two questions. First of all, I'd like to understand the specific response measures that you have been taking to respond to the cybersecurity incident in more detail, as well as the prevention measures that you will continue to employ. I would also like to understand in more detail the financial impacts of the incident on your earnings. Thank you.

Speaker 4

response to the cybersecurity incident you asked about, as well as measures to prevent recurrence in the future.

Speaker 2

Thank you for your questions. First, I'd like to respond to your question on our response measures and future prevention measures regarding the cybersecurity incident.

Speaker 5

includes the swift implementation of corrective actions, the Customer Assurance Package to fundamentally block customer damage, and the Information Protection Innovation Plan, which will invest a total of ₩700 billion over the next five years. The Head of Infrastructure Strategy will provide further details on this.

Speaker 2

We humbly accept the government's announcement and the investigation results. In addition to quickly implementing the recommended corrective measures, we have also announced the Accountability and Commitment Program, which includes the Customer Assurance Package to thoroughly prevent any damage for customers, and the Information Protection Innovation Plan to invest a total of ₩700 billion for the next five years. The Head of Infrastructure Strategy will provide you with more details.

Speaker 5

네, 안녕하십니까, 인프라 전략 본부장입니다. 사고 조치 및 향후 재발 방지 대책에 대해서 말씀드리겠습니다.

Speaker 2

I'm the Head of Infrastructure Strategy. I'd like to give you more detail in terms of the responses and preventive measures.

Speaker 5

먼저 사이버 침해 사고 이후 Customer Assurance Package를 통해 고객의 피해 가능성을 차단하고 안심하실 수 있도록 조치를 완료하였습니다.

Speaker 2

First of all, after the cybersecurity incident, we introduced the Customer Assurance Package to fundamentally prevent any damage from occurring to our customers so that they can be reassured.

Speaker 5

protection service, which was completed for all customers on May 13 and 14, the highest-level enhanced abnormal authentication blocking system, and SIM replacement for customers who wish to do so.

Speaker 2

The Customer Assurance Package includes the SIM protection service that is provided to all customers as of May 14, the highest level of the operation of the fraud detection system, and the eSIM replacements for those who request them.

Speaker 5

이와 함께 군, 정부 기관 등에 사용 중인 글로벌 최고 수준의 모바일 단말 보안 솔루션인 짐페리움을 1년간 무상 제공하고, 만에 하나 피해가 발생하는 경우 관련 비용을 전액 보상하는 사이버 침해 보상 보증 제도 도입 등을 통해서 더욱 업그레이드하여 고객을 보호할 예정입니다.

Speaker 2

In addition, a world-class mobile device security solution used by militaries and government agencies is provided free of charge for one year, and further customer protection will be provided by introducing a cybersecurity damage compensation assurance program to compensate for all the costs related to the damage if that happens to customers in the future.

Speaker 5

또한 중장기 Information Protection Innovation Plan을 통해서 SK Telecom은 보안이 강한 기업으로 거듭날 계획입니다.

Speaker 2

Also, through the medium and long-term Information Protection Innovation measures, SK Telecom will become a company with a very strong level of security.

Speaker 5

code by overhauling the security system, installed next-generation security solutions EDR and NDR on major systems to block information leakage and intrusion, and completed encryption of SIM information.

Speaker 2

Right after the incident, we restructured and improved the security system to ensure that there is zero malicious code, and installed next-generation security solutions such as EDR and NDR to our major systems to block any data leak and intrusion. Furthermore, eSIM information encryption has been completed.

Speaker 5

향후 5년간 ₩700 billion 규모의 투자 확대로 정보 보호 수준을 지속 높여 나가는 한편, 보안을 경영의 최우선 과제로 지향하는 보안 거버넌스 체계를 완성하고, 제로 트러스트 기반의 다단계 차세대 정보 보호 체계를 구축하고, 법적 의무 사항 이상의 개인 정보 강화 및 체계적인 내부 검증 체계 운영 등을 통해서 정보 보호 혁신 방안을 꾸준히 실행해 나가도록 하겠습니다.

Speaker 2

Going forward, we will continue to strengthen information security levels with ₩700 billion of investment for the next five years and put priority on IT security in our business management. To this end, we are working on the implementation of the Information Protection Innovation Plan, which includes restructuring of the security governance framework, implementing multi-layered next-generation information protection systems based on the zero trust principle, strengthening personal information security beyond legal obligations, and operating a systematic internal and external verification framework.

Speaker 5

이를 통해서 전 세계적으로 공신력을 인정받고 있는 미국 국립 표준 기술 연구소인 NIST의 사이버 시큐리티 프레임워크 기준, 글로벌 최고 수준의 정보 보호 체계를 만들어 나갈 계획입니다.

Speaker 2

Through all of these measures, we aim to strengthen our IT security and information security to the global top levels based on the cybersecurity framework by the National Institute of Standards and Technology of the U.S.

Speaker 5

네, 그럼 다음으로 이번 사고의 재무적 영향과 연간 실적 전망에 대해 말씀드리도록 하겠습니다.

Speaker 2

Next, let me respond to your question on the financial impact of the cybersecurity incident and our annual earnings guidance.

Speaker 5

the second quarter, and it is expected to appear to a somewhat greater extent in the second half of this year.

Speaker 2

First of all, the financial impact of the incident started to be reflected in the second quarter, and larger financial impact is anticipated in the second half of the year.

Speaker 5

우선 지난 2분기에 나타난 사고 관련 재무 임팩트는 크게 이동 통신 가입자 이탈에 따른 무선 매출의 감소, 그다음에 유심 무상 교체 및 대리점 보상에 따른 비용 증가를 들 수 있습니다.

Speaker 2

The financial impact in the second quarter includes MNO revenue decline due to subscriber turnout and increase in costs due to the free eSIM replacements and compensation for sellers.

Speaker 5

handset subscribers decreased by approximately 750,000 from the end of March to the end of June, which led to a KRW 38.7 billion decrease in mobile service revenue compared to the first quarter.

Speaker 2

With the suspension of new subscriber sign-ups to secure eSIM chips for the existing customers, the handset subscribers as of the end of June fell 750,000 from the end of March, resulting in the drop of ₩38.7 billion quarter over quarter in MNO revenue.

Speaker 5

또 NDNO를 포함한 전 고객 대상으로 유심 무상 교체를 결정한 만큼 2분기에 관련 비용을 모두 반영했고, 사고 여파 및 신규 가입 중단에 따른 유통망의 2분 피해를 보상하고자 대리점에 대한 보상금도 지급하면서 약 ₩250 billion의 일회성 비용이 발생했습니다.

Speaker 2

The cost of replacing eSIM for all customers, including MVNO subscribers free of charge, was fully recognized in the second quarter, and compensation was paid to the dealers to partially cover for damages incurred by the distributors due to the incident and suspension of new contract sign-ups, and as a result, approximately ₩250 billion of one-off expense incurred.

Speaker 5

하반기에는 책임과 약속 프로그램이 본격적으로 시행되는데, 특히 재무적으로 임팩트가 가장 큰 통신 요금 50% 할인이 3분기에 예정돼 있어서 2분기 대비 매출과 영업이익 하락이 불가피할 것으로 예상하고 있습니다.

Speaker 2

The Accountability and Commitment Program will be implemented in full swing in the second half of the year. In particular, 50% tariff discounts are scheduled for the third quarter, which bears the biggest financial impact. We anticipate a decline in revenue and operating profit compared to Q2.

Speaker 5

이러한 상황들을 감안해서 올해 매출 가이던스를 ₩17.8 trillion에서 ₩17 trillion으로 하향 조정한 바 있고, 영업이익 역시 전년 수준을 하회할 수밖에 없을 것으로 전망하고 있습니다.

Speaker 2

This is why we have lowered the annual revenue guidance from ₩17.8 trillion to ₩17 trillion, and this year's operating profit is also expected to underperform compared to the prior year.

Speaker 5

올해 예상되는 재무적 임팩트가 적지 않지만 당사의 가장 큰 자산인 고객 기반을 단단히 지키기 위해 책임과 약속 프로그램의 철저한 이행을 통해 고객 신뢰를 회복하고 궁극적으로는 기업 가치를 반드시 실현해 나가도록 하겠습니다. 이상입니다.

Speaker 2

The financial impact of the cybersecurity incident this year will be substantial. However, it is important to protect our customer base, which is the biggest asset of SK Telecom. We will regain the trust of our customers through a full implementation of the Accountability and Commitment Program and further enhance our corporate value. Thank you.

Speaker 5

take the next question.

Speaker 6

The following question will be presented by Wansuk Jung from Shin Young Securities. Please go ahead with your question.

Speaker 1

질문 주셔서 감사드립니다. 저는 두 가지 질문 드리고 싶습니다. 첫 번째는 배당에 관련된 질문입니다. 2분기 배당 발표해 주신 이후에 이제 투자자들의 시선은 4분기 배당으로 향하고 있는 것 같습니다. 연간 배당금 규모가 유지될 수 있을지에 대해서 질문 드리고 싶습니다. 네, 두 번째 질문은 가입자 회복 전략에 대한 질문입니다. 오늘 게시해 주신 자료 봤을 때 MNO 핸드셋 가입자 기준으로 약 75만 명 가입자 감소한 것으로 파악을 했는데요. 가입자 수 회복을 위해 보조금 확대와 같은 전략들 고려하고 있는지 질문 드리고 싶습니다. 감사합니다.

Speaker 2

I'm Chang Wonsuk from Shinhan Investment Corp. I would like to ask two questions. The first question is related to your dividend payout plans. You already made an announcement regarding the second quarter dividend, but investors are interested in learning more about the full-year dividend guidance. If you can provide us with more details, we would appreciate it, and we would like to know if the level of dividend payout for the whole year will be maintained. The second question is related to your strategies to win back customers that you have lost. According to the presentation materials you provided, we can see that there was a decline of 750,000 people of MNO handset subscribers because of the incident. I'd like to understand if you have any specific strategies to win them back, including the payout of subsidies. Thank you.

Speaker 5

네, 질문 감사합니다. 먼저 첫 번째 질문 배당에 관련해서는 제가 먼저 답변드리겠습니다.

Speaker 2

Thank you for your questions. Let me first answer your question on our dividend policy.

Speaker 5

저희 7월 이사회에서 2분기 배당금은 아시는 대로 지난 분기와 동일한 주당 830원으로 결정했고, 사실 향후 배당과 관련해서는 연간 실적이 보다 지금보다 구체화되는 시점에 다시 이사회의 논의를 거쳐 결정될 것입니다.

Speaker 2

As you are already aware, the July board determined the second quarter dividend per share to be the same as the prior quarter at ₩830, but regarding future dividends, the board will have discussions when we have more visibility for the whole year earnings.

Speaker 5

앞서 말씀드린 대로 지난 2023년 7월 4일에 공시했지만, 당사는 금번 사이버 침해 사고와 관련한 실적 영향을 감안해서 올해 2025년도 연결 매출 가이던스를 ₩17.8조에서 ₩17조로 하향 조정했고, 이익 또한 전년 대비 큰 폭으로 감소할 것으로 예상됩니다. 사실 주주 환원에 대한 고민이 있는 것도 사실입니다.

Speaker 2

As we announced on July 4, we adjusted the 2025 annual revenue guidance down from ₩17.8 trillion to ₩17 trillion in consideration of the financial impacts of the cybersecurity incident on our earnings. Also, 2025 profit is expected to decline significantly compared to the prior year, so we are currently giving serious thought to our shareholder return policy.

Speaker 5

향후 회사는 다양한 요소들을 충분히 숙고해서 올해 배당 규모를 결정할 것입니다. 다만 Accountability and Commitment Program을 통해 고객 신뢰를 회복하고자 하는 것과 같이 주요 스테이크홀더인 주주의 신뢰 역시 당사가 무엇보다 중요하게 생각하는 가치라는 점은 분명히 말씀드리고자 합니다. 이상입니다.

Speaker 2

Going forward, we will make decisions on dividends in consideration of various factors, but as we strive to regain customers' trust through the Accountability and Commitment Program, I'd like to reiterate that we consider the trust of our shareholders and shareholder value extremely important because they are valuable stakeholders for the company. Thank you.

Speaker 5

두 번째 질문 고객 임팩트 전략에 대해서는 마케팅 전략 본부장께서 답변드리겠습니다.

Speaker 2

Regarding your second question on strategies to win back customers, the Head of Marketing Strategy will respond.

Speaker 3

I will speak regarding the impact of customer churn.

Speaker 2

I am Jae Woong Yoon, Head of Marketing Strategy. Let me comment on our strategies to win back customers.

Speaker 3

당사의 사이버 침해 사고가 있었던 지난 4월 19일부터 위약금 면제 기간이 종료된 7월 14일까지 약 3개월간에 105만 명이 MMP 아웃 됐고, 33만 명이 MMP 인이 있었습니다.

Speaker 2

For about three months, from April 19 when the incident occurred until July 14 when the cancellation fee waiver period ended, we had 1.05 million MMP out and 330,000 MMP in.

Speaker 3

이 기간 중에 신규 모집 제한과 위약금 면제 등의 상황도 있었지만 당사는 고객 이탈을 최소화하기 위해서 ₩500 billion 규모의 Customer Appreciation Package를 전격적으로 제공하는 한편 기변 중심의 마케팅 비용도 평시보다 높은 수준으로 집행을 했습니다.

Speaker 2

Despite the suspension of new subscriber acquisition and cancellation fee waivers, we also offered ₩500 billion worth of the Customer Appreciation Package to minimize customer turnout, and we executed marketing expenses at levels higher than normal focused on handset replacement.

Speaker 3

이미 이탈한 고객에 대해서는 특정한 정량적 목표를 가지고 임팩트를 추진하기보다는 이번 사고를 계기로 보안이 가장 강한 회사로 거듭남으로써 자연스럽게 고객 신뢰를 회복하는 것이 중요하다고 생각합니다. 앞서 말씀드린 고객 안심 패키지와 정보 보호 혁신안이 모두 다 그러한 맥락에서 이행되고 있는 대책이라고 이해해 주시기 바랍니다.

Speaker 2

For those who have already switched to other operators, rather than trying to win them back with any quantitative targets or measures, we are going to continue to regain their trust naturally by becoming a telecom operator with the strongest level of security. The Customer Assurance Package and the Information Protection Innovation Plan are part of our efforts to regain their trust.

Speaker 3

이왕에 이탈 고객이 부담 없이 다시 돌아올 수 있도록 3년 내에 재가입하셨을 때 가입 연수와 멤버십 등급을 원상복구해 드리고 있으며, 올해 안에 재가입하는 고객에 대해서는 Customer Appreciation Package 중에 멤버십 할인 혜택을 함께 제공해 드릴 예정입니다.

Speaker 2

Also, to help customers return to SK Telecom without any burden, we are restoring their subscription years and membership grades if they come back within three years. Those who come back within this year will also enjoy benefits such as membership discount benefits as part of the Customer Appreciation Package.

Speaker 3

and the naturalness of promotions has also increased. Due to this, one-time costs may occur to secure customers, but since the customer base is the company's most important asset, we plan to proceed with customer impact by providing substantial customer benefits through more sophisticated and personalized marketing.

Speaker 2

In addition, the handset subsidy law was abolished on July 22, so we can give additional subsidies to dealers and have more autonomy in terms of promotions. These may lead to a one-off increase in expenses, but we will operate the market in a way that can offer maximum substantial benefits to our customers through more sophisticated and personalized marketing. Thank you.

Speaker 5

네, 그 다음 질문 받기 전에 현재 질문 대기하고 계신 분이 몇 분 더 계신가요?

Speaker 6

is waiting to ask a question.

Speaker 5

네, 그럼 그분 질문까지 받도록 하겠습니다.

Speaker 6

The following question will be presented by Aram Kim from Shinhan Investment Corp. Please go ahead with your question.

Operator

Investment Corp.의 Aram Kim입니다. 두 가지 신사업 관련한 질문이 있는데요. 첫째로 Ulsan AI data center 말씀 주셨는데, 투자 규모와 예상 실적 규모는 어느 정도 되는지, 관련해 중장기 CAPEX 가이던스 변화가 있을지 궁금합니다. 두 번째로 저희가 며칠 전 국가 AI 모델 개발 사업자로 선정됐는데, SK Telecom이 준비하고 있는 것, 그리고 기대하고 있는 게 무엇인지 궁금합니다.

Speaker 2

I'm Aram Kim from Shinhan Investment Corp. I'd like to ask two questions regarding your new businesses. First of all, you made an announcement to build an AI data center in Ulsan. I'd like to understand the overall annual investment plans and the actual revenue projections that you have for the Ulsan AI DC. I would also like to understand if this project will have an impact on the medium to long-term CAPEX guidance. The second question is related to your AI business. SK Telecom was selected as a company that is responsible for the national AI model development by the government. I'd like to understand what specific plans and preparations you are making regarding Sovereign AI development. Thank you.

Speaker 5

네, 질문 감사합니다. 질문 주실 거 관련해서는 AI DC 추진 본부장이 답변드리겠습니다.

Speaker 2

Thank you for your questions. I'd like to hand it over to Hyunwoo Lee, Head of AI DC Development, for his responses.

Speaker 3

네, AI DC 추진 본부장 이현우입니다. 답변드리겠습니다. 우선 울산 AI DC의 연도별 투자 규모와 매출 계획, 기존 이런 거를 말씀 주셨는데, 일단 계획을 먼저 말씀드리면 SK Broadband, 저희 자회사가 울산 AI 데이터 센터의 설계 및 구축을 위한 투자를 진행하게 되고, 데이터 센터 내부에 들어가는 GPU 등의 AI 컴퓨팅 설비는 AWS가 투자할 예정입니다.

Speaker 2

I'm the head of the AI DC development. Thank you for your question on our AI DC investment plans and revenue projections. First of all, SK Broadband, our subsidiary, will carry out investments to design and build Ulsan AI data center, and AWS will invest in AI computing facilities such as the GPUs that go into the data center.

Speaker 3

most of the investments from 2025 to 2028. Please understand that we cannot disclose the specific annual execution plan due to the confidentiality agreement with AWS.

Speaker 2

Most of the investments by SK Broadband will be made from the second half of 2025 until 2028. Please understand that we cannot disclose any specific annual investment plans due to the agreement with AWS for confidentiality.

Speaker 3

울산 AI 데이터 센터 예상 매출 또한 구체적인 숫자를 말씀드리기가 어렵지만, 당사의 AI 데이터 센터 사업 계획 전체의 관점에서 본다면 저희가 2030년까지 누적 300MW 이상의 용량을 확보할 계획이고, 그 가동률 상승에 따라서 2030년까지 연간 ₩1 trillion 수준의 매출을 예상하고 있습니다.

Speaker 2

Also, please understand that we cannot share with you any specific revenue projection numbers for Ulsan AI data center alone, but given the overall AI data center business plans of SK Telecom, we aim to secure a total of more than 300 megawatts capacity by 2030 and expect an annual revenue of around ₩1 trillion with increasing utilization rates.

Speaker 3

conventional data centers, as it implements ultra-high-density racks to achieve high computing power. Advanced structural design and cooling systems will be applied to support this, so we expect it will be more advantageous in terms of profitability compared to previous data centers.

Speaker 2

The Ulsan AI data center features ultra-high rack density to support strong computing power for AI and advanced solutions to support the operation, including structural design and cooling systems. Therefore, this AI DC is expected to bear higher profitability compared to conventional data centers.

Speaker 3

또한 그 구역 전기 사업자인 SK 멀티 유틸리티로부터 대규모 전력을 안정적으로 공급받을 수 있고, 울산 지역의 넓은 지상 부지를 활용해서 공사 기간을 단축할 수 있다는 장점도 있기 때문에 이것이 울산 AI DC의 수익성을 높이는 데 긍정적으로 작용할 것으로 예상합니다.

Speaker 2

We also will secure a stable supply of massive amounts of electricity from SK Multi Utility, which is a district electricity business operator, and we can shorten the construction period by utilizing a large ground area that we have secured in Ulsan. These factors are expected to increase the profitability of the Ulsan AI data center.

Speaker 5

셰프입니다. 두 번째 질문 답변드리기 전에 Ulsan AI DC와 관련해서 중장기 CAPEX 가이던스 변화와 관련해서는 제가 추가 답변 드리겠습니다.

Speaker 2

Before I hand it over back to the Head of AI DC Development, I'd like to comment on the impact of this particular project on our CAPEX guidance.

Speaker 5

최근에 울산 AI DC 투자나 정보 보호 투자 증액 같은 것 때문에 CapEx 증가 요인이 있는 것은 맞습니다.

Speaker 2

It is true that the recent decision to invest in the Ulsan AI data center and also investment in information protection will drive up the total CAPEX amount.

Speaker 5

울산 AI DC는 계약에 따라 세부 수치를 공개하기는 어렵지만 올 하반기 착공에 들어가는 만큼 올해 SK Broadband의 CAPEX가 전년 대비 한 10% 가까이 증가할 것으로 예상하고 있습니다.

Speaker 2

Due to the contract on Ulsan AI DC, we cannot disclose any specific figures, but the groundbreaking is scheduled for the second half of the year. As a result, SK Broadband's CAPEX is expected to be up nearly 10% year over year.

Speaker 5

하지만 5G 전국망 구축 완료 등 구조적 요인에 힘입어서 SK Telecom과 SK Broadband 합산해서 본 전체 연결 CAPEX는 아마 향후에도 안정화 기조를 지속할 수 있을 것으로 저희 생각합니다. 이상입니다.

Speaker 2

However, thanks to the structural factors such as the completion of nationwide 5G network, this year's combined CAPEX of SK Telecom and SK Broadband is expected to continue to maintain a stable trend this year and onward. Thank you.

Speaker 5

이어서 정부가 추진하는 Sovereign AI 관련해서 우리 회사의 참여 계획과 그 기회에 대해서 말씀을 드리겠습니다.

Speaker 2

Moving on to the question on SK Telecom's plans and opportunities regarding the Sovereign AI initiative by the government.

Speaker 3

우리 회사는 정부가 추진하는 주권형 AI 프로젝트에 적극 참여하고 있으며, 관련 레퍼런스를 꾸준히 축적을 하고 있고, 일부 프로젝트에 대해서는 이미 성과를 낸 바가 있습니다.

Speaker 2

We have been actively participating in the government-led Sovereign AI projects, and we have been accumulating relevant references, and indeed some projects have already produced meaningful outcomes.

Speaker 3

구체적으로 말씀드리면 지난 5월 정부가 추진하는 AI 인프라 사업 확보 사업 중에 하나인 GPU 임차 지원 사업에 공모를 해서 엔비디아의 최신 GPU로 구성된 AI 데이터 센터를 공급하는 사업자로 선정된 바 있습니다.

Speaker 2

To give you more details, in May, we applied to the GPU Lease Support Project to secure national AI infrastructure, and we were chosen as a supplier of AI data center featuring NVIDIA's advanced GPUs.

Speaker 3

project for the development and advancement of an independent AI foundation model, and we were selected as one of the final five elite teams.

Speaker 2

In July, we led the creation of a consortium which submitted a proposal to participate in a government project to develop and advance Sovereign AI Foundation models, and we were chosen as one of the five finalists.

Speaker 3

addition to participating in national AI business, we are also making multifaceted efforts to secure new business opportunities and policy support in line with government-level AI industry development.

Speaker 2

In addition to participating in these national AI projects, we're also making efforts to capture new business opportunities and secure policy support in line with the government's initiatives to promote the AI industry.

Speaker 3

대표적으로 지난 6월에 발표한 울산 AI DC 구축은 정부의 AI 고속도로 구축 및 국가 혁신 거점 육성 목표에 선제적으로 기여함으로써 향후 우리 회사가 정부의 AI 정책 추진에 있어 중요한 파트너로 포지셔닝하는 기반이 되어줄 것으로 기대를 하고 있습니다.

Speaker 2

For instance, in June, we announced a plan to build an AI data center in Ulsan, which is expected to contribute proactively to the government's initiative to build an AI highway and create a national AI innovation hub, thereby positioning SK Telecom as an important partner for the government in terms of AI policy implementation.

Speaker 3

그 외에도 당사 독자적으로 구축한 한국형 LLM인 A.X-3.1을 오픈소스로 공개해서 국내외 다양한 기업 환경에서 AI 기술의 도입을 지원하고, A-Dot 전화 통화 요약 등 당사의 AI 서비스에 리벨리온의 AI 반도체인 아톰을 테스트하는 등 그간 해외 의존적이었던 AI 기술에 대한 자립도를 높이고자 독자 기술을 기반으로 한 AI 생태계 구축에도 노력을 기울이고 있습니다.

Speaker 2

Furthermore, we've released A.X-3.1, our own Korean-specific LLM as open source to support AI adoption in diverse domestic and foreign business sectors, and we tested Rebellion's AI chip ADAM for our AI services, including A.Call. These represent our efforts to boost AI technology independence and establish an AI ecosystem based on proprietary technologies.

Speaker 3

우리 회사는 이미 작년 SK AI 서밋에서 한국형 소버린 AI 구축을 통해서 국내 AI 생태계의 자립을 실현하고, 그 안에서 핵심 플레이어로서 다양한 사업 기회를 만들어내겠다는 비전을 밝힌 바 있고요. 위와 같이 준비된 역량을 바탕으로 국가를 대표하는 AI 기업으로서의 위상을 만들어갈 것을 계획으로 갖고 있습니다.

Speaker 2

We already declared a vision at last year's SK AI Summit that we would realize independence of the domestic AI ecosystem through Korean Sovereign AI development and create new business opportunities in this ecosystem as a key player. Based on our prepared capabilities, we will establish ourselves as a leading AI company representing Korea.

Speaker 3

네, 고맙습니다. 이것으로 오늘 컨퍼런스 콜을 마치도록 하고요, 혹시 오늘 답변이 좀 부족했거나 추가적으로 궁금한 사항이 있으시면 언제든지 저희 IR 조직으로 문의해 주시기 바랍니다. 네, 감사합니다.

Speaker 2

With that, we would like to conclude the second quarter earnings conference call for SK Telecom. If you have additional inquiries, please contact us. Thank you.

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