SK Telecom (017670.KS), hit hard by a personal data breach last year, is restructuring its artificial intelligence business this year to transform its fundamentals. The strategy aims to expand AI data center capacity and grow enterprise clients to strengthen its revenue base.
SK Telecom reported consolidated revenue of 17.0992 trillion won and operating profit of 1.0732 trillion won for 2025 in a regulatory filing Wednesday. These figures represent decreases of 4.7% and 41.1% year-on-year, respectively. Net profit for the same period fell 73% to 375.1 billion won. The decline appears to reflect the impact of a 500 billion won compensation package following last year's data breach, along with subscriber losses and regulatory fines. Due to the weak performance, SK Telecom decided not to pay year-end dividends, following its decision to skip third-quarter dividends last year.
However, the company plans to improve investment efficiency this year through a "selection and concentration" strategy in the AI sector. It will first secure mid-to-long-term growth drivers by expanding infrastructure to the Seoul metropolitan area, South Gyeongsang Province, and the southwestern region, in addition to the Ulsan AI data center being developed with Amazon Web Services (AWS). Last year, SK Telecom's AI data center revenue rose 34.9% year-on-year to 519.9 billion won, driven by higher utilization rates at its Seoul, Gasan, and Yangju centers and the acquisition of the Pangyo center. This year, the company will break ground on a new center in Seoul and expand its submarine cable business to strengthen synergies with data centers. Cost structure improvements will proceed in parallel. The plan is to accelerate revenue generation by completing the Ulsan center ahead of schedule while identifying new business opportunities in Seoul to secure additional revenue.
SK Telecom is also accelerating its efforts to secure technological competitiveness after being selected as a second-phase operator for the government-led "Independent AI Foundation Model" project. The company plans to expand its user base by deploying A.dot, which has 10 million users, to consortium partner companies, while using the enterprise service "A.dot Biz" to enhance competitiveness of SK Group's manufacturing affiliates.
Subscriber numbers, which declined following the data breach, are gradually recovering. As of the end of last year, 5G subscribers reached 17.49 million, up 230,000 from the third quarter, and the fixed-line segment including high-speed internet also recovered to pre-incident net addition levels in the fourth quarter. "Revenue in 2026 will not reach 2024 levels due to non-core subsidiary divestments and subscriber decline," SK Telecom said during its earnings conference call Wednesday. "However, we will raise overall productivity through AI-centered business restructuring."