SK Telecom Co., Ltd. (SKM)

SK Telecom is Korea's largest mobile carrier, with 41.6 percent of mobile phone subscribers at the end of 2025, and it is now reshaping itself around AI data centers 1. On 27 August 2026 its board approved a plan to bring KKR and a Korean consortium in as co-owners of a new data center company, SK Horizon 3.

In the six months to 30 June 2026 revenue was Won 8,751.4 billion and operating profit Won 1,103.6 billion, against Won 905.6 billion a year earlier 2.

Full-year 2025 operating profit had dropped 38.0 percent to Won 1,048.5 billion 1. The company said the cause was lower revenue after a malware attack that leaked subscriber SIM card data, which it learned of on 18 April 2025 1.

The open questions are whether the SK Horizon deal closes on the terms filed, which the filings say remain subject to change 3. The company also plans a call on third-quarter results on 4 November 2026 7.

SK Telecom began as Korea's first wireless carrier, setting up its telephone business in March 1984 as Korea Mobile Telecommunications and took the SK Telecom name in March 1997 1.

Competition came late: the company was the only wireless provider until Shinsegi began cellular service in April 1996, and it merged with Shinsegi in January 2002 1.

It then reached beyond phone service: in February 2012 it acquired a stake in memory-chip maker SK Hynix for Won 3.4 trillion and became its largest shareholder 1. It completed the Tbroad merger in April 2020, which made it the second-largest pay TV provider in Korea 1.

In November 2021 it moved its 20.1 percent of SK Hynix and other non-telecom businesses into a new holding company, SK Square, and divided its common stock 5 to 1 1.

After that, revenue moved little: Won 17,608.5 billion in 2023 and Won 17,940.6 billion in 2024 1. Mobile service was mature, and the company worked to streamline, disposing of the Nate internet portal, SK M&Service and a credit-information affiliate between January and April 2025 1.

Revenue fell 4.7 percent in 2025 to Won 17,099.2 billion 1. Wireless service revenue dropped 6.6 percent, mainly because of discounts on August 2025 monthly fees offered after the cybersecurity incident 1.

Profit for the year fell to Won 375.1 billion from Won 1,387.1 billion 1. On 27 August 2025 the PIPC, a Korean regulator, imposed a fine of Won 134.8 billion over the incident 1.

Cellular services

Cellular services, the core segment, sells mobile voice and data plans, devices and extras such as internet-of-things and AI services, and brought in Won 12,552.5 billion, or 73.4 percent of revenue, in 2025 1.

At the end of 2025, 17,653 thousand of the 24,055 thousand lines on its networks, resellers and internal lines included, used 5G 1.

Its rivals are KT, with 30.8 percent of mobile subscribers, and LG U+, with 27.6 percent 1. Low-cost resellers, called MVNOs, had a combined 18.3 percent, of which 3.1 percent lease SK Telecom's networks 1.

Churn, the share of subscribers who leave each month, averaged 1.1 percent in 2025, up from 0.8 percent in 2024, which the company tied to the cybersecurity incident 1.

Broadband, TV and business networks

The fixed-line segment sells home internet, IPTV and cable TV, phone lines and business network services, including through SK Broadband 1. Its revenue rose 2.8 percent to Won 4,191.1 billion in 2025 1.

Business communications and related infrastructure revenue, including data center services, rose 12.4 percent in 2025 1. SK Telecom is Korea's second-largest broadband provider, with 28.7 percent of subscribers against KT's 40.3 percent, and has 25.9 percent of pay TV 1.

AI and data centers

AI is the stated growth area, and the company launched a GPU-as-a-service business in January 2025 1. In August 2025 it opened the Haein cluster of more than 1,000 NVIDIA B200 chips at SK Broadband's Gasan data center 1.

With Amazon Web Services it began building an AI data center in Ulsan in September 2025 1. In October 2025 it signed a letter of intent with OpenAI on a data center in southwest Korea 1.

People and workforce

Jaihun Jung is president and chief executive officer and a director since 2026 1. The board has eight directors, five of them independent 1. Employees numbered 22,723 at the end of 2025, down from 24,224 a year before 1.

Current problems

In the data leak case the company provisionally paid the Won 134.8 billion fine and filed an administrative lawsuit in January 2026, which is pending before the Seoul Administrative Court 1.

The umbrella, in words

SK Telecom belongs to the SK Group, and SK Inc. owns 30.6 percent of its issued shares and the National Pension Service 6.7 percent, as of 31 December 2025 1. Major shareholders do not have different voting rights 1.

SK Broadband is a consolidated subsidiary 4. The semi-annual report counts 18 consolidated subsidiaries at 30 June 2026, none of them listed 2.

It has invested US$100 million in Anthropic PBC in August 2023 and US$100 million in Joby Aviation in June 2023 1. It invested US$20 million in Lambda in February 2024 and US$200 million in Penguin Solutions in December 2024 1.

It owns 93.25 percent of SK T-Tower, its Seoul headquarters, and SK Square owns the other 6.75 percent 1. In December 2025 it agreed to dispose of SK Stoa and Media S to Rapport Labs, pending regulatory approval 1.

The annual report says the company expects capital spending in 2026 to be slightly higher than in 2025 1.

The Ministry of Science and ICT announced in December 2025 a plan to reallocate 370 MHz of spectrum expiring in 2026, 155 MHz of it to SK Telecom 1. The company said it planned to apply to renew 135 MHz in June 2026 1.

Operations at the Ulsan AI data center are expected to begin in 2027, the annual report says 1.

On 27 August 2026 SK Broadband's board approved a plan to spin off its data center and subsea cable businesses into SK Horizon, scheduled for 1 February 2027 and subject to change 4.

SK Telecom's board approved the disposal of 24,481,427 SK Horizon shares, scheduled for 4 March 2027, to secure investment funding for growth businesses 3. The filing expects SK Telecom, KKR and a Korean consortium to own 51, 29 and 20 percent, with terms subject to change 3.

On 7 August 2026 the company said it continues to review strategic options for its AI data center business and expects to make a further disclosure within three months 6.

After a 13 October 2026 media report, the company restated its plan for phased AI data centers with a mid- to long-term capacity target of 15 gigawatts 5. It said it had no specific plans for an extra 5 gigawatts overseas 5.