Jeong Jaeheon-Led SK Telecom Shakes Off Hacking Setback, Restores Trust; Q3 Operating Profit Jumps 11-Fold

Moving beyond the impact of the data breach

Operating profit in the KRW 500 billion range for three consecutive quarters

Growth continues in telecommunications and AI... AI infrastructure business ramps up

SK Telecom posted strong results in the third quarter of 2026, driven by its telecommunications and artificial intelligence (AI) businesses. The company is seen as having restored the competitiveness of its core telecommunications business by focusing on strengthening information security and compensating customers after a major SIM-card data breach in 2025.

SK Telecom disclosed on Nov. 4 that its preliminary consolidated operating profit for the third quarter of 2026 was KRW 552.3 billion. This was a 1,040.3% increase from the same period in 2025, with operating profit expanding more than 11-fold. Revenue for the same period rose 13.1% to KRW 4.4973 trillion.

An SK Telecom store in Seoul. 2025.06.24. Photo by Yoon Dongju

Excluding subsidiaries, SK Telecom reported standalone third-quarter revenue of KRW 3.1563 trillion, operating profit of KRW 413.5 billion, and net income of KRW 298.9 billion. The third-quarter dividend was set at KRW 830 per share, unchanged from the first and second quarters.

A breakdown by business shows that telecommunications continued to grow. Revenue in the wireless segment recovered as the company shifted its marketing focus to customer lifetime value (LTV), while revenue from wired telecommunications grew 7.4% year over year, helped by an increase in high-speed internet subscribers.

SK Telecom has now recorded operating profit in the KRW 500 billion range for three consecutive quarters this year, returning to its usual level of performance. Its operating profit in the third quarter of 2025 was just KRW 48.4 billion, affected by the SIM-card data breach. This was due to costs recognized in the third quarter of 2025, including waiving termination fees for customers who left, providing a customer appreciation package to those who stayed, and replacing SIM cards for all customers.

Jeong Jaeheon’s leadership is seen as having played a role in normalizing SK Telecom’s telecommunications business. Since taking office as SK Telecom’s chief executive officer (CEO) in October 2025, Jeong has described himself as the “chief change management officer” and made restoring customer trust and strengthening information security key priorities. To that end, he pledged KRW 700 billion in information security investment over the next five years. In late 2025, the company also established a dedicated customer experience (CX) organization. It also began operating a Customer Trust Committee that includes outside experts and a customer advisory group.

“The company took on the costs first, ensuring that its message of apology came across clearly and helping restore trust,” said Shin Minsu, a professor at Hanyang University. “The company’s operating culture has changed, as oversight by experts, customer participation, and implementation on the ground have all been carried out on multiple levels.”

SK Telecom CEO Jeong Jae-heon delivers a presentation at the SK AI Summit held at COEX in Gangnam-gu, Seoul, on Nov. 3, 2025. Photo by Yoon Dongju

SK Telecom is also moving in earnest into infrastructure businesses, including AI data centers (AIDCs). The AIDC business has been organized around its specialist subsidiaries SK Hyper, which handles business development, and SK Horizon, which operates infrastructure. SK Horizon is building new data centers with a combined capacity of approximately 180 MW in Ulsan and Seoul, while SK Hyper is in discussions with potential customers, primarily in Ulsan, on the terms of its business.

In its AI business, SK Telecom is applying its proprietary AI foundation model, “A.X K2,” to AI services for work, and has also been selected as part of a consortium for the government’s “AI for Everyone” initiative.

“By building on our two pillars of telecommunications and AI, we have achieved both recovery and growth,” said Park Jongseok, chief financial officer (CFO) of SK Telecom. “We will continue to connect our telecommunications and AI businesses through a unified growth strategy and work to amplify the synergies between them.”

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