[Conference Call] SKT: 250 Billion KRW One-Time Expense in Q2 Due to USIM Replacement and Retail Store Compensation

"Inevitable Impact on This Year's Performance... Will Restore Customer Trust"
"Costs for Rate Discounts and Additional Data to Be Reflected in Q3 and Q4"

SK Telecom has invested approximately 250 billion KRW to address the USIM hacking incident that occurred in April.

On August 6, during the second quarter earnings conference call, Kim Yangsub, Chief Financial Officer (CFO) of SK Telecom, explained, "In accordance with accounting principles, the cost of USIM replacement was fully recognized in the second quarter based on a conservative assumption that all customers could replace their USIMs." He added, "Including compensation for losses incurred by retail stores, a one-time expense of about 250 billion KRW was recorded in the second quarter."

Yonhap News Agency

Costs related to the 'Customer Appreciation Package,' which includes ongoing rate discounts and additional data for SKT subscribers, as well as penalty waivers, were not reflected in the second quarter. CFO Kim stated, "Expenses from the Customer Appreciation Package will be reflected in the third and fourth quarters."

CFO Kim also said, "Temporary impacts on this year's performance are inevitable due to USIM replacements for all customers, the Responsibility and Promise Program, and the waiver of contract termination penalties." He continued, "We believe that restoring customer trust from a mid- to long-term perspective is of utmost importance, and we will strengthen our core business fundamentals to ultimately enhance corporate value."

This content was produced with the assistance of AI translation services.