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SK Telecom Q2 Net Profit Collapses on Data Breach Costs

Double-digit AI unit sales growth accompanies plans for an AI data center in Ulsan to diversify revenue after the breach

Overview

  • Second-quarter net profit plunged 76.2% year-on-year to 83.2 billion won and operating income fell 37.1% to 338.3 billion won on 4.33 trillion won in sales
  • Management attributed the collapse to one-off costs of over 1 trillion won covering USIM replacements for all 25 million subscribers and retail outlet compensation
  • In June the company rolled out a 1 trillion won compensation and cybersecurity investment package and resumed new customer sign-ups in late June
  • Regulators imposed fines under the Personal Information Protection Act and ordered comprehensive security overhauls following the April breach
  • Sales in the AI data center segment rose 13.3% to 108.7 billion won and the AI transformation division increased 15.3% to 46.8 billion won, and a Ulsan AI data center with AWS is slated to begin operations in 2027