SK Telecom Creates Social Value of KRW 1.9457 Trillion Last Year... 3 Consecutive Years of Growth

[Asia Economy Reporter Koo Eun-mo] SK Telecom announced on the 16th that it created social value worth 1.9457 trillion KRW last year. This represents a 4% increase compared to 1.8709 trillion KRW in 2019, continuing a growth trend for three consecutive years since 2018.

SK Telecom explained that this was due to efforts to create social value in various areas such as greenhouse gas reduction and building social safety nets, as well as strengthening ESG (Environmental, Social, and Governance) management.

As a result, last year, 'Business Social Performance' increased by 60.2% year-on-year to 236.2 billion KRW, and 'Social Contribution Social Performance' rose by 33.9% to 51.3 billion KRW. However, 'Economic Indirect Contribution Performance' recorded 1.6582 trillion KRW, a 1.6% decrease due to factors such as treasury stock purchases.

By sector, the 'Business Social Performance,' which covers quality of life, labor, mutual growth, and environmental areas, was influenced by factors such as the traffic accident prevention effect of T map driving habits, increased users of AI care services, and contributions to improving domestic re-donation rates through blood donor health management services. The company’s pioneering implementation of full remote work among large corporations and efforts for mutual growth with small and medium enterprises were also reflected in the results.

The 'Social Contribution Social Performance' was highly evaluated for participating in building a social safety net during the COVID-19 era based on ICT capabilities. Representative cases include monitoring COVID-19 symptom onset using AI NUGU calls, providing free online lecture data for youth, and establishing disaster mobile communication roaming networks.

The 'Economic Indirect Contribution Performance,' linked to financial value, saw an increase in employment but a decrease in dividend performance due to treasury stock purchases. Employment indicators rose by 0.6%, and the mandatory employment rate target for persons with disabilities was achieved.

On the other hand, dividends decreased by 2.1% year-on-year as the number of shares eligible for dividend payments declined due to treasury stock purchases last year. SKT completed the cancellation of treasury stocks worth a total of 2.6 trillion KRW, equivalent to 10.76% of the total issued shares this year, to enhance shareholder value.

To ensure board independence and transparent management, SK Telecom reorganized its board committees into four in March, expanding their roles and authority. The committees consist of ▲Future Strategy Committee (mid- to long-term direction) ▲Personnel and Compensation Committee (future management development) ▲Audit Committee (fair and transparent corporate operation) ▲ESG Committee (enhancement of ESG management activities), supporting board-centered management.

Park Jung-ho, CEO of SK Telecom, stated, "SKT will continue to write a new ESG story together with various stakeholders through developing eco-friendly ICT technologies, contributing to strengthening social safety nets, and establishing a global advanced governance system."

Since 2019, SK has been announcing the results of measuring the social value created by major affiliates in the previous year and converting it into monetary terms.