SK Telecom eyes return to 40% market share after hack setback

SK Telecom CEO Jung Jai-hun (SK Telecom)

SK Telecom CEO Jung Jai-hun said Thursday the company is aiming to bring its market share back to around 40 percent by year-end after last year’s slide that followed a hacking incident, backed by a return to net subscriber growth and stronger shareholder returns.

“We are aiming to turn subscriber numbers into net growth this year,” he said after the annual shareholders meeting at the company’s headquarters in Seoul. “In January and February, the results were in line with expectations to some extent.”

He stopped short of offering a firm target, but left open the possibility of a rebound.

“If we continue making efforts, we may be able to reach that level,” he said, referring to the 40 percent mark.

The company is trying to regain ground after last year’s massive hacking breach weighed on subscriber sentiment.

On artificial intelligence, Jung said SK Telecom is still reviewing its options, even as one of its earlier investments has delivered strong gains. The value of its stake in Anthropic has risen roughly tenfold since the investment in 2023.

“There is no concrete plan yet,” he said. “We are reviewing various opportunities across the AI business.”

“We plan to move forward through collaboration with leading players,” he added.

Attendees, including board members and shareholders of SK Telecom, take part in the company’s 42nd annual general meeting in Seoul, Thursday. (SK Telecom)

At the Thursday meeting, shareholders approved key agenda items including 2025 financial statements, board appointments and amendments to the company’s articles.

SK Telecom reported consolidated revenue of 17.1 trillion won ($11.4 billion) and operating profit of 1.07 trillion won for last year, and confirmed a dividend of 1,660 won per share.

Shareholders also approved a plan to enable tax-free dividends, part of the company’s push to strengthen shareholder returns.

SK Telecom said it will convert 1.7 trillion won of capital reserves into retained earnings to be used as dividend resources, allowing shareholders to receive payouts without dividend income tax. The funds could be used as early as the year-end dividend, pending board approval after this year’s financial statements are finalized.

Jung, who took office in October last year, was appointed as an inside director, while five new board members were approved.

The company also revised its bylaws to allow hybrid electronic shareholder meetings and to rename outside directors as independent directors.

Separately, SK Telecom outlined plans for its treasury shares.

Of the 1,797,787 shares it holds — equivalent to 0.84 percent of total outstanding shares — 196,475 shares will be retained for employee compensation, while the remainder will be canceled following a future board decision.