SK Telecom aims to reclaim approximately 40% of the market share by the end of the year, according to CEO Jung Jai-hun. This goal follows a market share dip last year attributed to a hacking incident. The strategy hinges on achieving net subscriber growth and enhancing shareholder returns.
“We are aiming to turn subscriber numbers into net growth this year,” stated Jung Jai-hun after the company’s annual shareholders meeting held at its Seoul headquarters. “The results from January and February have largely aligned with our expectations.”
While refraining from providing a concrete, definitive target, he suggested a potential rebound is within reach.
“If we continue making efforts, we may be able to reach that level,” he commented, referring to the targeted 40% market share.
The South Korean telecommunications giant is focused on recovering lost ground after a significant hacking breach negatively impacted subscriber confidence last year.
Regarding artificial intelligence (AI), CEO Jung mentioned that SK Telecom is actively evaluating various options, especially given the substantial returns from prior investments. The company’s stake in Anthropic, for example, has reportedly increased tenfold in value since the initial investment in 2023.
“There is no concrete plan yet,” he explained. “We are reviewing various opportunities across the AI business.”
“We plan to move forward through collaboration with leading players,” he added, emphasizing strategic partnerships.
During the annual meeting on Thursday, shareholders approved key agenda items, including the 2025 financial statements, board member appointments, and revisions to the company’s articles of incorporation.
SK Telecom reported consolidated revenue of 17.1 trillion won ($11.4 billion) and an operating profit of 1.07 trillion won for the past year, and confirmed a dividend of 1,660 won per share.
Shareholders also approved a plan enabling tax-free dividends, demonstrating the company’s commitment to boosting shareholder value.
SK Telecom announced it will convert 1.7 trillion won in capital reserves into retained earnings for dividend distribution, allowing shareholders to receive dividends without incurring dividend income tax. These funds could be utilized as early as the year-end dividend, pending board approval after the finalization of this year’s financial statements.
Jung, who assumed his role in October of the previous year, was appointed as an inside director, and five new board members received approval.
The company also amended its bylaws to accommodate hybrid electronic shareholder meetings and to formally designate outside directors as independent directors.
In a separate announcement, SK Telecom outlined its plans for its treasury shares.
Of the 1,797,787 shares held – representing 0.84% of the total outstanding shares – 196,475 shares will be allocated for employee compensation, while the remaining shares will be canceled following a future decision by the board of directors.
yeeun
