SK Telecom (017670) 🔎 In-depth
KOSPI · Price as of 2026-08-06 · Updated 2026-08-09
SK Telecom is Korea's No. 1 mobile carrier, earning a large share of revenue from mobile phone plans (wireless) while also running fixed-line internet and IPTV (SK Broadband) and enterprise data-center, AI and cloud businesses. In 2025 net profit fell 67% year on year to ₩408.4 billion, as compensation and fee reductions from a USIM data-leak incident, subscriber attrition, and one-off year-end costs overlapped; but in the first quarter of 2026 it returned to a normal footing with net profit of ₩316.4 billion and operating profit of ₩537.6 billion, a sharp rebound from the prior quarter. What stands out lately is that once this year's earnings normalize with the incident behind it, last year's spiked P/E falls quickly and the dividend recovers; on the other hand, growth in the core telecom business is gradual, so the strength of the earnings rebound and the pace of dividend normalization are the points to watch.
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30-second brief
Pulled directly from the computed values below — not a separately written opinion.
What do the SourceComputedEstimateReading tags mean?
Source filings and exchange data · Computed calculated from public data · Estimate our own unverified projection · Reading drafted automatically, then rule-checked. See AI & Automation.
Core valuation metric
This stock's effective sub-sector is “Telecommunications” (Telecom & Utilities), a type typically read first through EV/EBITDA.
Telecom pours heavy capital into network infrastructure and uses debt alongside it, so depreciation and capital structure weigh heavily on reported profit. That's why EV/EBITDA — enterprise value, including debt, against operating cash generation — reflects the underlying profitability more fairly than net-income P/E.
Price against earnings alone becomes unstable when earnings swing. Reading it together with price against assets helps gauge the downside.
This note explains how each sector is typically valued and is educational context only, not investment advice.
At-a-glance assessment financial health · growth · profitability · valuation
- Revenue fell 4.7% year over year (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 1.4% lower than a year earlier.
- ROE is 2.7% (controlling-interest basis). It is below the sector average.
- Operating margin is 6.1%.
- A sector-metric and in-depth research verdict — see “Valuation vs peers” below for the basis.
Ownership & governance As of 2025-12-31
Largest shareholder SK 30.57% (corporate)
Controlling bloc incl. related parties 30.58%
With the controlling bloc holding 31%, the ownership structure is stable.
🔎 In-depth analysis Reading
SK Telecom is the No. 1 player by market share in Korea's mobile market. The largest pillar of revenue is mobile wireless charges (voice and data plans). Added to this is the subsidiary SK Broadband, which handles fixed-line high-speed internet and IPTV. Through a share swap in May 2026, SK Broadband became a wholly owned subsidiary at 100%. The third pillar is the enterprise-customer business, which includes data centers, cloud, AI infrastructure and enterprise communication solutions. In recent years it has been growing AI as a new growth engine, with the personal AI assistant 'A.' and AI data centers as leading examples. In short, it is a structure that seeks additional growth in fixed-line and media and in AI and enterprise businesses on a base of stable telecom-charge revenue.
The latest close is ₩91,100 and the market capitalization is ₩19.6 trillion. The price sits above its 20-day moving average (₩87,945) and below its 60-day moving average (₩94,983). Short-term and medium-term trends are diverging, so the direction is best read separately. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 52.2, a neutral level. The one-month change is +6.9%, the three-month change is -4.6%, and the position relative to the 52-week high is -27.2%. Relative strength versus the KOSPI is 62 (on a 1-99 scale, converted from returns against the index over the past year with more weight on recent performance; higher means stronger than the market). It is stronger than roughly 62% of all stocks. Over the past three months it outpaced the index by 16.3%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
On last year's confirmed results the P/E ratio (how many times one year's earnings the price represents) looks high at 44.7x. But this figure is based on 2025, when net profit was depressed by incident compensation and one-off costs, so the distortion is large. ROE (how much is earned in a year on equity) also comes out low at 3.2%, a temporarily depressed value for the same reason. Net profit in the normal year of 2024 was ₩1.2502 trillion. The debt ratio (debt against equity) is 133%, a manageable level for a telecom carrier. Interest coverage is 2.2x, reflecting the industry's heavy telecom-infrastructure investment. The dividend yield is 1.95%, and the company maintains a policy of paying out more than 50% of consolidated adjusted net profit over 2024-2026. EV/EBITDA (debt-adjusted enterprise value divided by pre-depreciation operating profit) is 5.2x, not a heavy burden for a telecom-infrastructure company. The FCF yield (actual cash generated relative to market cap) is 8.5%, showing that its cash-generating power itself held firm even in the incident year.
Last year's revenue was ₩17.1099 trillion, down 4.7% from the prior year. Operating profit fell 41% to ₩1.0732 trillion, and net profit plunged 67% to ₩408.4 billion. This plunge is not a growth slowdown but, at its core, the fallout from the 2025 USIM data-leak incident. After the incident, waived cancellation penalties increased subscriber attrition, and a 50% fee reduction and a compensation program cut wireless revenue. At year-end, one-off costs such as voluntary retirement were also reflected. Normalization is clear from the first quarter of 2026. Q1 net profit was ₩316.4 billion, up 181% from the prior quarter. Operating profit also surged 351% from the prior quarter to ₩537.6 billion. This is the result of year-end one-off costs disappearing and the core business finding its footing. This year's profit is expected to recover to pre-incident levels. So last year's trailing P/E of 44.7x falls sharply on this year's normalized-earnings basis. Revenue growth in the core telecom business itself is gradual, so the growth engine after recovery hinges on the AI and enterprise businesses.
The biggest event is the 2025 USIM data-leak incident and its compensation phase, which heavily depressed 2025 profit. In May 2026 the company completed a comprehensive share swap to buy SK Broadband's remaining stake in cash and make it a wholly owned subsidiary at 100%. Because it paid cash without issuing new shares, there is no dilution of existing shareholders' stakes. The company stated it has no separate merger plan and that the aim is synergy across the fixed-line, wireless, media and enterprise businesses. On the dividend side, it resumed quarterly dividends in 2026. The Q1 dividend was set at ₩830 per share. It also converted ₩1.7 trillion of capital reserves into retained earnings so that tax-free dividends become possible from the year-end dividend onward.
The core is that last year's depressed profit is normalizing this year. As the incident's fallout clears, Q1 profit has already rebounded sharply. Last year's trailing P/E looks high at 44.7x, but that is a distorted figure reflecting a one-off shock. On this year's normalized-earnings basis the valuation burden falls markedly. It is also a strength that the earnings recovery can lead to dividend normalization; the company maintains a policy of paying out more than 50% of adjusted net profit. On the other hand, revenue growth in the core telecom business is gradual. Additional growth after recovery hinges on results in the AI, data-center and enterprise businesses. The pace at which AI investment translates into profit and the pace of the dividend's return to prior-year levels are the points to watch. In short, it is strong in a phase of earnings normalization and dividend recovery, while upside momentum can be limited in a phase of low core-business growth and delayed AI results.
🔎 Valuation vs peers Fairly valued
Korea's other two mobile carriers (KT, LG Uplus) are used as the substantive peer set.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| KT | 7.79x | 0.74x | 8.54% |
| LG Uplus | 12.15x | 0.72x | 6.07% |
The apparent P/E of 44.7x is far higher than KT (7.6x) and LG Uplus (11.5x). But this figure is a distorted value, with net profit depressed to ₩408.4 billion by 2025 one-off incident costs. On the basis of ₩1.2502 trillion in net profit in the normal year of 2024, the P/E was around 15x. Once this year's earnings normalize, the forward P/E also comes down to around 15x, converging to roughly a slight premium over the telecom-sector average. The P/B is 1.42x, higher than KT and LG Uplus (around 0.7x), but this can be seen as reflecting a relatively smaller capital base and a dividend and AI premium. Taken together, it looks expensive on trailing measures alone, but on a normalized-earnings basis it is judged to be in a fair zone that is not excessive relative to the three telecom carriers.
Price history Close · MA20 · MA60
The latest close is ₩91,100 and the market capitalization is ₩19.6 trillion. The price sits above its 20-day moving average (₩87,945) and below its 60-day moving average (₩94,983). Short-term and medium-term trends are diverging, so the direction is best read separately. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 52.2, a neutral level. The one-month change is +6.9%, the three-month change is -4.6%, and the position relative to the 52-week high is -27.2%. Relative strength versus the KOSPI is 62 (on a 1-99 scale, converted from returns against the index over the past year with more weight on recent performance; higher means stronger than the market). It is stronger than roughly 62% of all stocks. Over the past three months it outpaced the index by 16.3%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
Relative performance stock vs index · start = 100
Excess return vs index · 3M +16.28% / 6M +3.64% / 12M -15.91%
Key metrics Computed vs sector median
Valuation
The P/E of 47.91x is above the sector median (11.13x). The P/B of 1.47x is above the sector median (0.94x).
Enterprise value (EV)
EV = market cap + net debt. It reflects cash and debt, so it captures the real cost of the whole business that market cap alone misses; lower multiples are cheaper relative to earnings or sales.
Profitability & financials
Return on equity (ROE) is 2.7%, below the sector average (7.0%). The operating margin is 6.1%. The debt ratio is 125.5%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $12.4B | $12.6B | $12.0B | -4.69% ↓ slower |
| Operating profit | $1.2B | $1.3B | $753.9M | -41.14% ↓ slower |
| Net profit | $768.3M | $878.2M | $286.9M | -67.33% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $11.8B | $12.2B | $12.4B | $12.6B | $12.0B |
| Operating profit | $974.5M | $1.1B | $1.2B | $1.3B | $753.9M |
| Net profit | $1.7B | $641.0M | $768.3M | $878.2M | $286.9M |
| Revenue CAGR | 4-yr avg 0.52% | ||||
Revenue fell 4.7% year over year (2023 ₩17.6 trillion → 2024 ₩17.9 trillion → 2025 ₩17.1 trillion), and the three-year trend is 'mixed'. The rate of decline widened from the prior year. Operating profit fell 41.1% year over year. The decline widened. Over the 5 years on record, revenue compound annual growth (CAGR) is 0.5%. The two-year revenue CAGR is -1.5%. In the most recent quarter (Q1 2026), revenue was 1.4% lower than the same period a year earlier.
Latest quarterly results Source Q1 2026 · vs year-ago
Technical indicators Computed
What stands out
- —
Points to watch
- Revenue fell 4.7% year over year (3-year trend: mixed).
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-05-29FilingCompleted a comprehensive share swap to acquire SK Broadband's remaining stake in cash, folding it in as a wholly owned subsidiary at 100%. Conducted by paying cash without issuing new shares.Medium term: expected integration synergy across the fixed-line, wireless, media and enterprise businesses. No dilution of shareholders' stakes as no new shares were issued. Source
- 2026-06-08FilingClarification disclosure regarding rumors or media reports.Short term: a channel for confirming the company's official position on matters of market interest. Source
- 2026-05-29FilingQ1 large business group status disclosure and corporate governance report, periodically reporting governance and group status.Medium term: routine information related to governance transparency. Source
- 2026-04-27DividendResumed quarterly dividends in 2026. The Q1 cash dividend was set at ₩830 per common share (record date May 31).Medium term: a signal of dividend normalization after the incident. The company maintains a policy of paying out more than 50% of adjusted net profit. Source
Figure cross-check computed ↔ external
Recent filings Source
- 2026-06-08Disclosure
- 2026-05-29Merger decision
- 2026-05-29Large-business-group status disclosure
- 2026-05-29Corporate governance report
- 2026-05-18OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-18OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-18OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-18OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-18OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-18OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-18OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-18OwnershipOfficers'/major-shareholders' holdings report
📖 Plain-language glossary — expand if you are new to this
- P/E
- How many times a year's net profit the price is worth (lower is cheaper relative to earnings). The P/E here is on trailing (last full-year) results; for companies whose earnings swing fast (memory chips and other cyclicals/high-growth), a forward P/E on this year's expected earnings is more accurate.
- P/B
- Price relative to net assets (equity). Around 1x means it trades near book value; below 1x means below book.
- P/S
- Price relative to a year's revenue — useful for growth companies with thin earnings.
- Net debt / EV
- Net debt = interest-bearing debt − cash. Negative means more cash than debt (net cash). EV (enterprise value) = market cap + net debt, closer to what it would cost to buy the whole business.
- EV/EBIT · EV/EBITDA · EV/Sales
- Enterprise value against operating profit (EBIT), EBITDA, or revenue. Unlike P/E these reflect debt and cash; lower is cheaper relative to earnings power or sales.
- FCF / FCF yield
- Free cash flow = operating cash − capex, the cash actually left over. FCF yield = FCF ÷ market cap; higher means more cash generated per unit of market value.
- Intrinsic value (DCF)
- Future free cash flow (or, for some capex-heavy but profitable names, forecast earnings) discounted to today to estimate per-share value. Because it shifts a lot with the discount-rate and growth assumptions, it is shown as a bear/base/bull range, and the basis and assumptions are disclosed in one line beneath it.
- ROE
- How much profit the company earns in a year on its equity (%). Higher means better returns on capital.
- EPS / BPS
- Earnings per share / net assets (book value) per share.
- Operating / net margin
- Profit left from the core business / final profit after tax and interest, per unit of revenue.
- Debt ratio
- Debt relative to equity (%). Higher means more reliance on borrowing (norms vary by sector).
- Current ratio
- Assets convertible to cash within a year against debt due within a year. Above 100% leaves some short-term headroom.
- Interest coverage
- How many times operating profit covers the interest owed. Below 1x means operating profit alone struggles to cover interest.
- Dividend yield / payout ratio
- The year's dividend as a % of today's price / the share of earnings paid out as dividends.
- Revenue CAGR
- Multi-year growth expressed as a single yearly average (compound annual growth rate).
- RSI (short-term signal)
- Whether recent price action is overheated or beaten down. Above 70 is overbought, below 30 oversold.
- MA20 / MA60 (moving averages)
- The 20- and 60-day average price. Price above them signals a firmer short-term trend.
- vs 52-week high
- How far below the past year's peak the price sits now (%).
All figures are for reference only; how they read varies by sector and over time.
Sources: Korea FSC market-price API (data.go.kr), OpenDART, KRX/KIND — public data only.
Bong Stocks presents public-data-based information for reference only. It is not investment advice and contains no target prices, ratings, or buy/sell recommendations. Verify independently before making any decision.