$SKM

SK TELECOM CO LTD

CIK:0001015650|SEC Filings

Consolidated Statements of Income - KRW (₩) ₩ in Millions	12 Months Ended
Consolidated Statements of Income - KRW (₩) ₩ in Millions	Dec. 31, 2025	Dec. 31, 2024	Dec. 31, 2023
Operating revenue and other income:
Revenue	₩ 17,099,213	₩ 17,940,609	₩ 17,608,511
Other income	170,434	72,288	50,366
Operating revenue and other income	17,269,647	18,012,897	17,658,877
Operating expenses:
Labor	2,711,262	2,725,765	2,488,245
Commission	5,494,689	5,564,289	5,549,899
Depreciation and amortization	3,467,134	3,560,374	3,614,766
Network interconnection	635,085	692,881	678,459
Leased lines	267,348	265,518	275,477
Advertising	182,669	186,340	235,769
Rent	134,075	136,753	142,356
Cost of goods sold	1,269,541	1,326,159	1,266,357
Others	2,059,343	1,863,956	1,651,273
Operating expenses	16,221,146	16,322,035	15,902,601
Operating profit	1,048,501	1,690,862	1,756,276
Finance income	219,358	355,035	248,376
Finance costs	(481,996)	(605,919)	(527,401)
Gain (loss) relating to investments in subsidiaries, associates and joint ventures, net	(63,602)	321,787	10,928
Profit before income tax	722,261	1,761,765	1,488,179
Income tax expense	347,177	374,670	342,242
Profit for the year	375,084	1,387,095	1,145,937
Attributable to:
Owners of the Parent Company	408,410	1,250,155	1,093,611
Non-controlling interests	₩ (33,326)	₩ 136,940	₩ 52,326
Earnings per share
Basic earnings per share (in won)	₩ 1,825	₩ 5,780	₩ 4,954
Diluted earnings per share (in won)	₩ 1,825	₩ 5,765	₩ 4,950

Consolidated Statements of Cash Flows - KRW (₩) ₩ in Millions	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024	Dec. 31, 2023
Cash generated from operating activities:
Profit for the year	₩ 375,084	₩ 1,387,095	₩ 1,145,937
Adjustments for income and expenses	4,436,619	4,313,213	4,546,338
Changes in assets and liabilities related to operating activities	(144,208)	(108,813)	(274,163)
Sub-total	4,667,495	5,591,495	5,418,112
Interest received	52,646	74,787	60,134
Dividends received	75,537	43,536	50,899
Interest paid	(371,502)	(356,081)	(341,488)
Income tax paid	(500,329)	(266,452)	(240,452)
Net cash provided by operating activities	3,923,847	5,087,285	4,947,205
Cash inflows from investing activities:
Decrease in short-term financial instruments, net	127,141
Collection of short-term loans	100,801	131,823	136,242
Proceeds from disposals of long-term investment securities	702,184	51,741	100,817
Proceeds from disposals of investments in associates and joint ventures	31,540	77,974	4,950
Proceeds from disposals of assets held for sale	25,944	13,031	1,353
Proceeds from disposals of property and equipment	240,487	47,078	12,900
Proceeds from disposals of intangible assets	10,137	32,685	4,428
Collection of long-term loans	2,915	1,680	1,547
Decrease in deposits	11,317	5,758	5,922
Proceeds from settlement of derivatives	5,047	492	1,452
Proceeds from disposals of subsidiaries, net of cash transferred	51,086
Proceeds from disposals of short term investment securities	75,664
Government grants received			2,967
Sub-total	1,384,263	362,262	272,578
Cash outflows for investing activities:
Increase in short-term financial instruments, net		(26,581)	(51,421)
Increase in short-term loans	(98,284)	(110,810)	(130,041)
Increase in long-term loans	(13,264)	(14,118)	(11,602)
Acquisitions of long-term investment securities	(39,538)	(222,568)	(324,997)
Cash outflows from settlement of derivatives		(112,903)
Acquisitions of investments in associates and joint ventures	(11,672)	(8,014)	(17,656)
Acquisitions of property and equipment	(2,206,567)	(2,487,360)	(2,973,882)
Acquisitions of intangible assets	(116,685)	(71,856)	(106,761)
Increase in deposits	(18,518)	(15,525)	(6,848)
Cash decrease due to changes in consolidation scope		(4,354)	(2,275)
Cash outflow from acquisitions of business	(506,844)
Acquisitions of short-term investment securities	(110,000)
Sub-total	(3,121,372)	(3,074,089)	(3,625,483)
Net cash used in investing activities	(1,737,109)	(2,711,827)	(3,352,905)
Cash inflows from financing activities:
Proceeds from short-term borrowings, net	30,000	100,000
Proceeds from issuance of debentures	1,875,300	1,236,475	1,785,108
Proceeds from long-term borrowings	300,000	200,000	49,950
Proceeds from issuance of hybrid bonds			398,509
Cash inflows from settlement of derivatives	52,859		183,090
Transactions with non-controlling shareholders	92	15,717	160
Sub-total	2,258,251	1,552,192	2,416,817
Cash outflows for financing activities:
Repayments of short-term borrowings, net			(142,998)
Repayments of long-term payables – other	(369,150)	(369,150)	(400,245)
Repayments of debentures	(2,121,501)	(1,235,750)	(1,869,190)
Repayments of long-term borrowings	(312,500)	(402,500)	(125,000)
Redemption of hybrid bonds			(400,000)
Payments of dividends	(628,359)	(804,317)	(773,806)
Payments of interest on hybrid bonds	(19,800)	(19,800)	(17,283)
Repayments of lease liabilities	(372,834)	(381,347)	(402,465)
Acquisition of treasury shares		(15,788)	(285,487)
Transactions with non-controlling shareholders		(133,393)	(21,333)
Cash outflow from transactions with the non- controlling shareholders	(1,145,870)	(133,393)
Sub-total	(4,970,014)	(3,362,045)	(4,437,807)
Net cash used in financing activities	(2,711,763)	(1,809,853)	(2,020,990)
Net increase (decrease) in cash and cash equivalents	(525,025)	565,605	(426,690)
Cash and cash equivalents at beginning of the year	2,023,721	1,454,978	1,882,291
Effects of exchange rate changes on cash and cash equivalents	(4,088)	26,124	(623)
Cash and cash equivalents included in assets held for sale	(4,584)	(22,986)
Cash and cash equivalents at end of the year	₩ 1,490,024	₩ 2,023,721	₩ 1,454,978

Consolidated Statements of Financial Position - KRW (₩)
₩ in Millions

Dec. 31, 2025

Dec. 31, 2024

Current Assets:

Cash and cash equivalents

₩ 1,490,024

₩ 2,023,721

Short-term financial instruments

151,426

323,890

Short-term investment securities

35,217

Accounts receivable – trade, net

1,918,502

1,989,306

Short-term loans, net

69,664

65,205

Accounts receivable – other, net

346,326

^[1]

369,192

^[2]

Contract assets

124,831

90,385

Prepaid expenses

2,135,763

1,945,610

Prepaid income taxes

6,217

Derivative financial assets

6,945

119,500

Inventories, net

167,640

209,783

Assets held for sale

143,489

174,839

Advanced payments and others

131,086

165,230

Total Current Assets

6,727,130

7,476,682

Non-Current Assets:

Long-term financial instruments

370

373

Long-term investment securities

3,188,572

1,877,922

Investments in associates and joint ventures

2,238,470

2,341,827

Investment property, net

39,841

26,611

Property and equipment, net

11,902,173

12,617,394

Goodwill

2,072,493

Intangible assets, net

1,710,620

2,194,871

Long-term contract assets

63,778

46,352

Long-term loans, net

32,184

34,446

Long-term accounts receivable – other, net

164,762

173,252

Long-term prepaid expenses

1,280,751

1,108,406

Guarantee deposits, net

167,823

155,875

Long-term derivative financial assets

303,201

221,608

Defined benefit assets

205,477

154,329

Other non-current assets

10,138

12,814

Total Non-Current Assets

23,380,653

23,038,573

Total Assets

30,107,783

30,515,255

Current Liabilities:

Accounts payable – trade

110,867

126,508

Accounts payable – other

1,576,870

2,798,978

Withholdings

1,011,918

928,679

Contract liabilities

207,682

168,194

Accrued expenses

1,345,998

1,522,750

Income tax payable

28,482

243,564

Derivative financial liabilities

5,782

Provisions

145,953

50,016

Short-term borrowings

130,000

100,000

Current portion of long-term debt, net

1,122,584

2,460,109

Current portion of long-term payables – other

368,572

367,765

Lease liabilities

407,959

351,363

Liabilities held for sale

67,108

106,352

Total Current Liabilities

6,529,775

9,224,278

Non-Current Liabilities:

Debentures, excluding current portion, net

7,294,445

6,363,646

Long-term borrowings, excluding current portion, net

300,000

203,125

Long-term payables – other

179,389

539,955

Long-term lease liabilities

1,117,839

1,286,588

Long-term contract liabilities

194,261

61,512

Defined benefit liabilities

2,086

Long-term derivative financial liabilities

621

3,437

Long-term provisions

80,094

70,044

Deferred tax liabilities

1,363,191

851,200

Other non-current liabilities

92,876

81,750

Total Non-Current Liabilities

10,622,716

9,463,343

Total Liabilities

17,152,491

18,687,621

Shareholders' Equity:

Share capital

30,493

Capital surplus and others

(12,529,849)

(12,353,445)

Hybrid bonds

398,509

Retained earnings

22,938,268

22,976,127

Reserves

2,025,682

646,943

Equity attributable to owners of the Parent Company

12,863,103

11,698,627

Non-controlling interests

92,189

129,007

Total Shareholders' Equity

12,955,292

11,827,634

Total Liabilities and Shareholders' Equity

₩ 30,107,783

₩ 30,515,255

[1]	Gross and carrying amounts of accounts receivable – other as of December 31, 2025 include ₩189,963 million of financial instruments classified as fair value through profit or loss (“FVTPL”).
[2]	Gross and carrying amounts of accounts receivable – other as of December 31, 2024 include ₩223,761 million of financial instruments classified as fair value through profit or loss (“FVTPL”).