SK Telecom Co Ltd (SKM) 2023 Q1 法說會逐字稿

[Interpreted] Good morning, and good evening. First of all, thank you all for joining this conference call. And now we will begin the conference of the Fiscal Year 2023 First Quarter Earnings Results by SK Telecom. (Operator Instructions) Now we shall commence the presentation on the fiscal year 2023 first quarter earnings results by SK Telecom.

[翻譯] 早上好，晚上好。首先，感謝大家參加本次電話會議。現在我們將開始召開 SK 電訊 2023 財年第一季度財報會議。 （操作員說明）現在我們將開始介紹 SK 電訊 2023 財年第一季度的收益結果。

[Interpreted] Good afternoon. I am Hee Jun Chung, Investor Relations Officer at SK Telecom. Thank you for joining SK Telecom's earnings conference call.

[翻譯] 下午好。我是 SK Telecom 的投資者關係官 Hee Jun Chung。感謝您參加 SK Telecom 的收益電話會議。

We are providing consecutive interpretation for the call, which will consist of a presentation on the first quarter 2023 earnings highlights, future business plans and strategic directions as well as the Q&A session. The call is attended by our executives from relevant business divisions, including Jinwon Kim, CFO and Head of Corporate Planning of SK Telecom. .

我們將為電話會議提供交替傳譯，其中包括介紹 2023 年第一季度的收益亮點、未來業務計劃和戰略方向以及問答環節。來自相關業務部門的高管出席了電話會議，其中包括 SK 電訊的首席財務官兼企業規劃主管 Jinwon Kim。 .

Before we begin, I would like to remind you that all forward-looking statements are subject to change depending on market situations. Let me now present our CFO.

在我們開始之前，我想提醒您，所有前瞻性陳述都可能根據市場情況發生變化。現在讓我介紹我們的首席財務官。

[Interpreted] Good afternoon. This is Jinwon Kim, CFO of SK Telecom. SK Telecom participated in MWC 2023 held in Barcelona, Spain in late February, and presented its concrete plans for the AI company vision and recent achievements. It was an opportunity to introduce AI start-ups that we're closely cooperating with and engage in active discussion with overseas telcos and big tech companies to build a global cooperative framework. SK Telecom will strive to lead AI transformation to ensure that all generations, businesses and industries can enjoy the benefits of AI to the fullest.

[翻譯] 下午好。我是 SK Telecom 的首席財務官 Jinwon Kim。 SK Telecom 參加了 2 月下旬在西班牙巴塞羅那舉行的 MWC 2023，並展示了其 AI 公司願景和近期成就的具體計劃。這是一個介紹我們正在密切合作的人工智能初創企業的機會，並與海外電信公司和大型科技公司積極討論以建立全球合作框架。 SK Telecom 將努力引領 AI 轉型，確保所有世代、企業和行業都能充分享受 AI 帶來的好處。

Now let me report on the consolidated financial results of the first quarter 2023. Consolidated revenue reported KRW 4,372.2 billion, up 2.2% year-over-year, thanks to the growth of both the fixed and mobile business and the new businesses. It reported a decline of 0.5% Q-on-Q due to the drop in handset sales of the subsidiary company.

現在讓我報告一下 2023 年第一季度的合併財務業績。由於固定和移動業務以及新業務的增長，合併收入報告為 43,722 億韓元，同比增長 2.2%。由於子公司手機銷量下降，該公司報告環比下降 0.5%。

The operating income posted KRW 494.8 billion, up 14.4% year-over-year and 94.4% Q-on-Q, mainly due to the base effect of one-off labor costs recognized in Q1 of the previous year and seasonal expenses recognized in the previous quarter. Net income grew 37.3% year-over-year and 35.2% Q-on-Q to come in at KRW 302.5 billion on the back of increase in dividend income from the invested companies.

營業收入為 4,948 億韓元，同比增長 14.4%，環比增長 94.4%，主要是由於上年第一季度確認的一次性人工成本和本季度確認的季節性費用的基數效應上一季度。由於被投資公司的股息收入增加，淨利潤同比增長 37.3%，環比增長 35.2%，達到 3025 億韓元。

On a non-consolidated basis, revenue grew 1.3% year-over-year and 0.7% Q-on-Q to KRW 3,117.3 billion operating income and net income reported KRW 415.7 billion and KRW 422.2 billion, respectively.

在非合併基礎上，營業收入同比增長 1.3%，環比增長 0.7%，營業收入為 31,173 億韓元，淨收入分別為 4,157 億韓元和 4,222 億韓元。

Let me now turn to the first quarter business highlights and strategic directions of the company that is pursuing transformation and leap forward into an AI company. SK Telecom is providing differentiated AI services based on its own hyperscale language technology accumulated over the years. In addition to the A. service, we are actively applying our AI technology to the 5 business groups wherever appropriate, to identify and implement concrete ways to maximize growth and profitability of each business.

下面談談這家正在轉型、飛躍為AI公司的公司一季度的業務亮點和戰略方向。 SK Telecom 以自身多年積累的超大規模語言技術為基礎，提供差異化的 AI 服務。除了 A. 服務外，我們還在適當的時候將我們的 AI 技術積極應用於 5 個業務組，以確定並實施具體方法，以最大限度地提高每個業務的增長和盈利能力。

As you're aware, AI is advancing rapidly, and the scope of AI-powered services is getting wider. Against this backdrop, SK Telecom will continue to scale up its AI capabilities and services through partnerships with diverse Korean and foreign AI companies in areas where such partnerships are necessary, including the use of ChatGPT, while further advancing its own AI technology. .

如您所知，人工智能正在迅速發展，人工智能服務的範圍越來越廣。在此背景下，SK Telecom 將通過在需要此類合作夥伴關係的領域（包括使用 ChatGPT）與各種韓國和外國人工智能公司建立合作夥伴關係，繼續擴大其人工智能能力和服務，同時進一步推進自己的人工智能技術。 .

As part of the strategy, SK Telecom signed a strategic partnership with Scatter Lab in April with an equity investment of KRW 15 billion. Known for its Lee Lu-da chatbot that can hold empathetic conversations. Scatter Lab is an AI start-up that uses deep learning to develop a relationship-oriented AI agent that can have human-like conversations with users.

作為該戰略的一部分，SK 電訊於 4 月以 150 億韓元的股權投資與 Scatter Lab 簽署了戰略合作夥伴關係。以 Lee Lu-da 聊天機器人而聞名，它可以進行感同身受的對話。 Scatter Lab 是一家 AI 初創公司，它使用深度學習開發麵向關係的 AI 代理，可以與用戶進行類似人類的對話。

The partnership with Scatter Lab aims to jointly develop an AI agent service capable of holding empathetic conversation for the A. service, which is optimized for personalization through long-term memory and multimodal technology. The joint development will support the evolution of A. to be more human-like than humans. The 2 companies have also agreed to pursue close cooperation to develop a hyperscale language model that is equipped with emotion and knowledge domains.

與 Scatter Lab 的合作旨在共同開發一種 AI 代理服務，能夠為 A. 服務進行同理心對話，該服務通過長期記憶和多模式技術針對個性化進行了優化。聯合開發將支持 A. 進化為比人類更像人類。兩家公司還同意進行密切合作，以開發配備情感和知識領域的超大規模語言模型。

Like this, SK Telecom is stepping up efforts on all fronts to transform itself into an AI company by strengthening cooperation with leading AI companies in Korea and actively pursuing partnerships with global top-tier AI companies. With global presence secured through its launch in 49 countries last year, ifland has attracted more than 10% of MAU from overseas in the first quarter. It is expanding the scope of global cooperation through MOUs signed with several global companies, including Deutsche Telekom, T-Mobile and Axiata.

像這樣，SK電訊通過加強與韓國領先人工智能公司的合作，並積極尋求與全球頂級人工智能公司的合作夥伴關係，正在全方位加緊努力，將自己轉變為一家人工智能公司。憑藉去年在 49 個國家/地區的推出確保了全球影響力，ifland 在第一季度吸引了超過 10% 的海外 MAU。它正在通過與包括德國電信、T-Mobile 和 Axiata 在內的幾家全球公司簽署諒解備忘錄擴大全球合作範圍。

Furthermore, ifland is evolving into metaverse-type social media platform centered on 3D virtual spaces by launching if home in May, a personalized 3D space. It also plans to strengthen its economic system in order to secure a new monetization structure by introducing a content marketplace based on in-app transactions in the second half of this year.

此外，ifland 在 5 月推出個性化 3D 空間 if home，正在發展成為以 3D 虛擬空間為中心的元宇宙型社交媒體平台。它還計劃通過在今年下半年引入基於應用程序內交易的內容市場來加強其經濟體系，以確保新的貨幣化結構。

T Universe has solidified its position as a leading subscription product in Korea with the average MAU of more than 1.8 million in Q1. Following the introduction of an annual subscription service last year, T Universe continues to launch new service features to enhance customer experience and convenience, including a topping function where users can add extra services to their subscription and a gifting function. It is also reinforcing competitiveness in product differentiation by leveraging partnerships with big players, which resulted in the recent launch of YouTube Premium in addition to Amazon free shipping.

T Universe 鞏固了其作為韓國領先訂閱產品的地位，第一季度的平均 MAU 超過 180 萬。繼去年推出年度訂閱服務後，T Universe 繼續推出新的服務功能，以提升客戶體驗和便利性，包括用戶可以在訂閱中添加額外服務的置頂功能和贈送功能。它還通過利用與大公司的合作夥伴關係來增強產品差異化的競爭力，這導致最近除了亞馬遜免費送貨外還推出了 YouTube Premium。

In the UAM business that aims to launch Korea's first commercial UAM service in 2025, SK Telecom aims to be a total service provider that covers aircraft, telecommunications and services. We have secured differentiated capabilities based on MOS platform, 5G area network and an exclusive partnership with Joby Aviation, global #1 UAM aircraft manufacturer. We're doing our best to gain leadership in the industry by securing a license early through successful demonstration projects.

在旨在於 2025 年推出韓國首個商業 UAM 服務的 UAM 業務中，SK 電訊旨在成為涵蓋飛機、電信和服務的綜合服務提供商。我們已經獲得了基於 MOS 平台、5G 區域網絡的差異化能力，並與全球排名第一的 UAM 飛機製造商 Joby Aviation 建立了獨家合作夥伴關係。我們正在盡最大努力通過成功的示範項目儘早獲得許可，從而在行業中處於領先地位。

In addition, we continue to showcase interactive items such as immersive VR content experience UAM at various exhibitions and events including MWC, Seoul Mobility Show and World IT Show to boost public interest and familiarity, which is essential to secure social acceptance in the early stages of UAM commercialization. The enterprise business is enjoying continued revenue growth centered on data centers and cloud business. In particular, stable increase in the utilization rate of Gasan and Siksa data centers is supporting steady revenue growth.

此外，我們繼續在包括 MWC、首爾移動展和世界 IT 展在內的各種展覽和活動中展示沉浸式 VR 內容體驗 UAM 等互動項目，以提高公眾的興趣和熟悉度，這對於確保早期階段的社會接受度至關重要。 UAM商業化。企業業務以數據中心和雲業務為中心，收入持續增長。特別是Gasan和Siksa數據中心的利用率穩定增長，支撐著收入的穩定增長。

In the first quarter, we have secured the largest order in AICC business, which started last year. Using this as a reference, we plan to expand AI transformation of the call center industry, which has been in the spotlight recently. In addition, we intend to utilize various AI technologies and solutions to support customers' AI transformation and continue to explore further growth opportunities through new customer acquisition.

一季度，我們拿到了去年開始的AICC業務最大訂單。以此為參照，我們計劃擴大最近備受關注的呼叫中心行業的AI轉型。此外，我們打算利用各種人工智能技術和解決方案來支持客戶的人工智能轉型，並通過新客戶的獲取繼續探索進一步的增長機會。

Let me now report on the performance of the fixed and mobile business, which is the basis of our company. As of the end of Q1, the number of 5G subscribers reached 14.15 million, accounting for more than 60% of the total subscribers. We plan to attract high-quality subscribers through continuous digital transformation based on AI to sustain earnings improvement.

現在讓我報告一下固定和移動業務的表現，這是我們公司的基礎。截至一季度末，5G用戶數達到1415萬戶，佔總用戶數的60%以上。我們計劃通過基於人工智能的持續數字化轉型來吸引優質用戶，以維持盈利增長。

As of the end of Q1, the pay-tv subscribers and broadband subscribers reached 9.4 million and 6.76 million, respectively. We continue to grow the subscriber base by achieving #1 net adds market share for IPTV and broadband. Based on our strong subscriber base, we plan to pursue growth centered on efforts to acquire high value-added subscribers such as increasing the share of Giga Internet users.

截至一季度末，付費電視用戶和寬帶用戶分別達到940萬戶和676萬戶。我們通過實現 IPTV 和寬帶淨增市場份額第一，繼續擴大用戶群。基於我們強大的用戶基礎，我們計劃以努力獲得高附加值用戶為中心實現增長，例如增加千兆互聯網用戶的份額。

Finally, for shareholder returns, the board determined the first quarter DPS to be the same as the previous quarter at 831. We will do our best to ensure that transformation into an AI company will lead to maximization of corporate value and shareholder value.

最後，對於股東回報，董事會確定第一季度的DPS與上一季度相同，為831。我們將盡最大努力確保向AI公司轉型將帶來企業價值和股東價值的最大化。

We ask for your continued support and encouragement. Thank you.

我們請求您繼續支持和鼓勵。謝謝。

[Interpreted] We will now begin the question-answer session.

[翻譯]我們現在開始問答環節。

[Interpreted] (Operator Instructions) The first question will be provided by Soojin Kim from Mirae Asset Securities.

[解釋]（操作員說明）第一個問題將由未來資產證券的 Soojin Kim 提供。

[Interpreted] I am Kim Soojin from Mirae Asset. The first question is related to your shareholder return policy for year 2023. At the last conference call, you mentioned that you would consider the possibility of share buyback by utilizing income coming from Hana Financial Group and SK Broadband. But you did not mention about this in your initial presentation. So I'd like to understand what your plans are regarding the shareholder return policy in terms of the timing and the method? The second question is related to the recently launched if home service that you announced last week. And I can see that if Home is very similar to AsaiWorld in a sense that users will have their personalized spaces on the your metaverse platform. I'd like to understand how this will lead to your monetization of the Metaverse business and your business model development.

[翻譯] 我是未來資產的金秀珍。第一個問題與您 2023 年的股東回報政策有關。在上次電話會議上，您提到您將考慮利用 Hana Financial Group 和 SK Broadband 的收入回購股票的可能性。但是您在最初的介紹中沒有提到這一點。那麼我想了解一下您對股東回報政策的時間和方法有什麼計劃？第二個問題與您上周宣布的最近推出的家庭服務有關。而且我可以看到，如果 Home 與 AsaiWorld 在某種意義上非常相似，用戶將在您的元宇宙平台上擁有他們的個性化空間。我想了解這將如何導致您的 Metaverse 業務貨幣化和您的業務模型開發。

[Interpreted] Thank you very much for your question. As per your question on our shareholder return policy, we mentioned, yes, about the potential share buyback at the last conference call. So the market would like to know more about this. Currently, we have the dividend yield of more than 7%, which means that our stock price is rather undervalued. So we still have in mind a potential share buyback program going forward.

[已翻譯]非常感謝您的提問。根據您關於我們股東回報政策的問題，我們在上次電話會議上提到了潛在的股票回購。因此，市場希望對此有更多了解。目前，我們的股息收益率超過7%，這意味著我們的股價被低估了。因此，我們仍然考慮未來的潛在股票回購計劃。

As per specific timing and the size of share buyback, these are subject to Board approval. So I cannot really give you specific details at this point in time. As you mentioned, we have enough pool of financial resources, including the dividend income coming from SK Broadband and Hana Financial Group, and we have improvement in the earnings over the past year. So when it comes to the specific details, we will consider various factors, including the stock market, our stock price trend and the overall business environment and the cash flow to determine the optimal time of the share buyback.

根據具體時間和股份回購規模，這些都需要董事會批准。所以我現在不能給你具體的細節。正如你提到的，我們有足夠的財務資源，包括來自 SK Broadband 和 Hana Financial Group 的股息收入，而且我們在過去一年的收益有所改善。所以在具體細節上，我們會綜合考慮股市、我們的股價走勢以及整體經營環境和現金流等多方面因素，來確定回購股份的最佳時機。

In addition, we introduced a new shareholder return policy at the time of the split off. And this year is the third year since we have been implementing the existing shareholder return policy. Based on our past experiences, we understand that if a share buyback is done on a temporary basis, it may drive up the stock price momentarily, but it has some limitations as to increasing the corporate value in the medium to long term.

此外，我們在拆分時引入了新的股東回報政策。今年是我們實施現有股東回報政策以來的第三年。根據以往的經驗，我們了解到，如果暫時回購股票，可能會暫時推高股價，但從中長期來看，這對提升企業價值有一定的局限性。

So in consideration of our new shareholder return policies, including dividend payout, we are considering how we can create more sustainable shareholder return policy, including share buyback. And after active discussions at the Board, we will come up with a decision. And we will make sure to communicate with the market when we have more details and concrete plans after the Board discussions.

因此，考慮到我們新的股東回報政策，包括股息支付，我們正在考慮如何制定更可持續的股東回報政策，包括股票回購。在董事會進行積極討論後，我們將做出決定。當我們在董事會討論後有更多細節和具體計劃時，我們將確保與市場進行溝通。

And as for shareholder return in this year 2023, as I mentioned in my presentation, we are considering a very stable quarterly dividend, and the first quarter dividend amount is DPS is KRW 831 per share. Therefore, our annual dividend payout size is going to be similar to the previous year, and we continue to discuss various options to maximize shareholder value and shareholder return, including the potential share buyback, and we will continue to do our best to return more to our shareholders.

至於今年 2023 年的股東回報，正如我在演講中提到的，我們正在考慮非常穩定的季度股息，第一季度股息金額為每股 831 韓元的 DPS。因此，我們的年度股息支付規模將與上一年相似，我們將繼續討論各種方案以最大化股東價值和股東回報，包括潛在的股票回購，我們將繼續盡最大努力回報更多我們的股東。

And with your question on our plans for the Metaverse platform, Mr. Yang Maeng-seok, Head of Metaverse Company, will address the question. .

關於您關於我們對元界平台的計劃的問題，元界公司負責人Yang Maeng-seok先生將回答這個問題。 .

[Interpreted] Hello. I am Yang Maeng-seok, Head of Metaverse Company. The if home service that we recently launched is basically a social networking or a social media platform utilized the 3D spaces -- so in if home, users can create their own 3D virtual space, and they can decorate their space using various items, and this is basically creating their own space virtually.

[解釋] 你好。我是元界公司負責人Yang Maeng-seok。我們最近推出的 if home 服務基本上是一個社交網絡或社交媒體平台，利用了 3D 空間——所以在 if home 中，用戶可以創建自己的 3D 虛擬空間，他們可以用各種物品裝飾自己的空間，而這基本上是在無形中創造自己的空間。

There, in this if home space, users can host various writing and they can use 3D frames to share photos. In this way, they can continue to share their everyday experiences and their thoughts and their views, and they can share these feed with others.

在那裡，在這個如果是家的空間裡，用戶可以進行各種寫作，他們可以使用 3D 相框來分享照片。通過這種方式，他們可以繼續分享他們的日常經歷以及他們的想法和觀點，並且他們可以與其他人分享這些提要。

By utilizing these features, users can invite their friends over to their if homes, and they can also visit other homes of their friends. In this way, they are engaged in new types of social activities. Even though this is a very new product, we are receiving various positive feedback because users find a lot of enjoyment in decorating their own spaces and visiting their friends homes and singing together in these spaces.

通過利用這些功能，用戶可以邀請他們的朋友到他們的家中，他們也可以訪問他們朋友的其他家。通過這種方式，他們參與了新型的社會活動。儘管這是一個非常新的產品，但我們收到了各種積極的反饋，因為用戶在裝飾自己的空間、拜訪朋友家和在這些空間裡一起唱歌時發現了很多樂趣。

As users continue to decorate and nurture their virtual spaces and engage in various social activities, they will be motivated to utilize various services and keep coming back to this platform. And in this way, there will be increasing needs to have unique items and differentiated items to express their own personality and such demand and need is expected to bring about benefit in terms of the economic system that we're planning to introduce in the second half of the year.

隨著用戶不斷裝飾和培育他們的虛擬空間並參與各種社交活動，他們將有動力使用各種服務並不斷回到這個平台。這樣一來，為了表現自己的個性，對擁有獨特的商品和差異化的商品的需求就會增加，這種需求和需求有望為我們計劃在下半年引入的經濟系統帶來好處的一年。

As for the economic system that we're planning to introduce in the second half of the year, there are 3 main parts. The first part is offering a 3D content marketplace where users can create and sell avatars and spaces and other motion related features. And the second part is where they can purchase premium access and premium privileges such as getting access to singing rooms and other paid spaces. And the third part is about sponsoring influencers and celebrities that they want to support.

至於我們計劃在下半年推出的經濟系統，主要有3個部分。第一部分是提供一個 3D 內容市場，用戶可以在其中創建和銷售化身和空間以及其他與運動相關的功能。第二部分是他們可以購買高級訪問權限和高級特權的地方，例如進入歌唱室和其他付費空間。第三部分是關於贊助他們想要支持的影響者和名人。

In addition, we're planning to apply the NFT technology in terms of content, including avatar costumes and other decorative items, and users can purchase unique content created by creators using NFT. And this is expected to bring about more revenue coming from this platform, and this will also attract a larger number of creators joining this platform, which will lead to creation of a more of a creator centered platform as well. Thank you.

此外，我們計劃在內容方面應用NFT技術，包括頭像服飾和其他裝飾品，用戶可以購買由創作者使用NFT創作的獨特內容。這有望帶來更多來自該平台的收入，這也將吸引更多的創作者加入該平台，這也將導致創建更多以創作者為中心的平台。謝謝。

[Interpreted] The next question will be presented by Joonsop Kim from KB Securities.

[解讀] 下一個問題將由 KB Securities 的 Joonsop Kim 提出。

[Interpreted] I am Kim Joonsop from KB Securities. I have 2 questions. The first question is the impact of the recent price plans that you've introduced. So I'd also like to know if you have any plans to introduce any new additional price plans going forward. The second question has to do with your AI business. Recently, there was a presentation by SK Telecom at the MWC 2023. And since that presentation, I wonder if there have been any major updates.

[解讀]我是KB證券的Kim Joonsop。我有兩個問題。第一個問題是您最近推出的價格計劃的影響。所以我也想知道你們是否有任何計劃在未來推出任何新的額外價格計劃。第二個問題與您的 AI 業務有關。最近，SK 電訊在 MWC 2023 上做了一個演示。自從那個演示之後，我想知道是否有任何重大更新。

[Interpreted] Thank you for the questions. As for the first question regarding new price plans, Kim Ji-hyeong, Head of Integrated Marketing Strategy Office, will address the question. And then the second question will be addressed accordingly.

[已翻譯] 謝謝提問。關於新價格計劃的第一個問題，綜合營銷戰略室長金智亨將回答這個問題。然後將相應地解決第二個問題。

[Interpreted] I am Kim Ji-hyeong, Head of Integrated Marketing Strategy Office.

[翻譯]我是綜合營銷戰略室長金智亨。

The 3 new 5G price plans that we introduced recently are related to broadening the options for price plans so that customers can decide on a price plan according to their own usage patterns. We expect that these new price plans will help lessen the burden on the part of the customers and increasing benefits that they can enjoy. And this will lead to a higher level of satisfaction in terms of the use of 5G services, and it will bring about very positive benefits.

我們最近推出的3個新的5G資費方案，是為了拓寬資費方案的選擇範圍，讓客戶可以根據自己的使用習慣來決定資費方案。我們期望這些新的價格計劃將有助於減輕客戶的負擔並增加他們可以享受的利益。而這會在使用5G服務方面帶來更高的滿意度，會帶來非常積極的收益。

Following the senior -- the price plan for the senior customers, we launched a new 5G customized price plan on May 1. And this is about bringing down the gap between 59 price plan and 69 price plan. And so that 69 price plan users can choose a more reasonable price plan depending on their usage pattern. And the price plan for the youth that will be introduced in June are focused on providing more customized benefits for the needs of the young customers so that this will gain more support and more participation from younger customers of SK Telecom.

繼高級——針對高級客戶的價格計劃之後，我們在5月1日推出了新的5G定制價格計劃。這是為了縮小59價格計劃和69價格計劃之間的差距。並且讓69價格方案的用戶可以根據自己的使用模式選擇更合理的價格方案。而即將在6月推出的青年價格計劃，則著重針對年輕客戶的需求提供更多定制化福利，從而獲得SK電訊年輕客戶更多的支持和參與。

So in short, the diversification of the 5G price plans can lead to higher utilization of 5G services and better customer retention. Therefore, when it comes to the impact of such new price plans on our performance, it is not easy to give you any specific answer in terms of whether it is positive or negative, but we'll have to see the trend in the medium and long term.

因此，簡而言之，5G 價格計劃的多樣化可以提高 5G 服務的利用率和更好的客戶保留率。因此，當涉及到這種新的價格計劃對我們業績的影響時，很難給出具體的正面或負面的答案，但我們必須看到中期和未來的趨勢。長期。

As for your question on our future price plan-related initiative, we announced a new set of price plans in March, and some of them are not yet launched, including the used price plan that is going to be introduced in June. So I believe it is a little too early for us to discuss any further price plan-related ideas, and we have not yet made any internal review about this. But as I mentioned before, the 5G market has become more mature now. So it is only natural that we come up with more variety of price lineups and price plans so that we can attract more subscribers and offer more competitive prices.

至於你問我們未來的價格計劃相關舉措，我們在3月份公佈了一套新的價格計劃，其中一些還沒有推出，包括6月份將推出的二手價格計劃。所以我認為現在討論任何與價格計劃相關的想法還為時過早，我們還沒有對此進行任何內部審查。但正如我之前提到的，5G市場現在已經變得更加成熟。因此，我們很自然地會推出更多種類的價格陣容和價格計劃，以便我們能夠吸引更多的訂戶並提供更具競爭力的價格。

So that is why we have offered new price plans and data plans depending on our refined customer segments, including the direct price plan and price plans for the youth and senior customers. And in our price plan package, we already have price options that are in the ranges of KRW 30,000 to KRW 40,000. But at the same time, we understand that a lot of customers prefer to go for unlimited data plans because they want to enjoy 5G services and variety of 5G-related benefits without having to be concerned about data limit. And we also see that the size of customers' data usage continues to increase. So these are some of the factors that we will consider when we design new price plans in the future.

因此，我們根據細分的客戶群，推出了新的資費套餐和流量套餐，包括直銷套餐和針對年輕和老年客戶的套餐。在我們的價格套餐中，我們已經提供了 30,000 韓元至 40,000 韓元的價格選項。但與此同時，我們了解到很多客戶更願意選擇無限數據計劃，因為他們希望享受 5G 服務和各種 5G 相關的好處，而不必擔心數據限制。而且我們還看到客戶的數據使用量持續增加。所以這些都是我們以後在設計新的價格方案的時候會考慮的一些因素。

And moving on to your question regarding our AI strategy. Last year, yes, SK Telecom announced our new AI vision, and that was also when the ChatGPT became a bit buzz word in the market. And now the market is being led by AI, and AI technology is advancing very rapidly. In retrospect, I would like to say that SK Telecom has rather a long history of being involved in AI development in AI services.

繼續你關於我們的人工智能戰略的問題。去年，是的，SK Telecom 宣布了我們新的 AI 願景，那也是 ChatGPT 在市場上成為一個流行詞的時候。而現在市場正在被人工智能所引領，人工智能技術的進步非常迅速。回顧過去，我想說 SK 電訊在人工智能服務領域參與人工智能開發的歷史相當悠久。

For one, in 2016, we launched an AI speaker, Nugu. And in 2019, we applied KoBERT, which is our own large language model to the customer service chatbot. And so it shows that for the past several years, SK Telecom has been accumulating capabilities by developing its AI services and technology. So based on our own capabilities and technology, we were able to launch A., which is based on a hyperscale language model. And this was a preemptive move that allowed us to quickly ride on the wave of AI, including ChatGPT.

首先，在 2016 年，我們推出了一款人工智能音箱 Nugu。並且在 2019 年，我們將我們自己的大型語言模型 KoBERT 應用於客戶服務聊天機器人。這表明，在過去的幾年裡，SK 電訊一直在通過開發其 AI 服務和技術來積累能力。所以基於我們自己的能力和技術，我們能夠推出基於超大規模語言模型的A.。這是一個先發製人的舉措，讓我們能夠迅速趕上 AI 的浪潮，包括 ChatGPT。

Against this backdrop, we would like to employ a 2-track strategy. On one part, it may be a little too early to talk about this, but we also need to respond to the potential technology dependency issue at the national level. And there are more specific domain related large language models that are being developed. So in response to these developments, we need to continue to advance and develop our own hyperscale language model. .

在此背景下，我們希望採用雙軌策略。一方面，現在談論這個可能有點為時過早，但我們也需要在國家層面應對潛在的技術依賴問題。還有更多特定領域相關的大型語言模型正在開發中。所以為了應對這些發展，我們需要繼續推進和發展我們自己的超大規模語言模型。 .

So that's one track. And the other track is utilizing partnerships and collaboration with big tech companies because AI technology is advancing rapidly and hyperscale language models, including ChatGPT are being introduced in the market.

所以這是一首曲目。另一個軌道是利用與大型科技公司的合作夥伴關係和協作，因為人工智能技術正在迅速發展，並且包括 ChatGPT 在內的超大規模語言模型正在引入市場。

So the recent investment in Scatter Lab is also part of this 2-track strategy. This has brought us a new core technology that we did not have in the past. So likewise, we will continue to ride the waves of technological development by investing in advancing our own hyperscale AI model, and at the same time, we will explore collaborative opportunities with external partners. And in this way, we will be able to accumulate AI capabilities in a more efficient manner so that we can expand service business models based on AI that can be favored and enjoyed by our customers.

所以最近對 Scatter Lab 的投資也是這個 2-track 戰略的一部分。這給我們帶來了過去沒有的新的核心技術。因此，同樣地，我們將繼續通過投資推進我們自己的超大規模人工智能模型來駕馭技術發展的浪潮，同時，我們將探索與外部合作夥伴的合作機會。通過這種方式，我們將能夠更有效地積累人工智能能力，從而擴展基於人工智能的服務商業模式，讓客戶喜歡和享受。

Regarding more technical aspects of our AI business, we haven't had much of an opportunity in the past. So I would like to use this opportunity to introduce (inaudible) and Kim Young-joon , who are in charge of A. strategy and A. technology to give you more details.

關於我們人工智能業務的更多技術方面，我們過去沒有太多機會。所以我想藉此機會介紹一下（聽不清）和負責A. 戰略和A. 技術的Kim Young-joon 來給大家介紹更多細節。

[Interpreted] I am (inaudible) , Head of Project Management Office and in charge of A. advancement, I'd like to give you some more details in terms of service, global expansion and technology.

[翻譯] 我是（聽不清），項目管理辦公室負責人，負責 A. 推進，我想在服務、全球擴張和技術方面為您提供更多細節。

First of all, regarding our service, we made a preemptive move of launching and operating A. this year. And we have been utilizing A. and using advanced AI technology. So we are preparing for a major update consecutively starting from June this year.

首先，在我們的服務方面，今年我們先發製人地推出並運營了A.。我們一直在利用 A. 並使用先進的人工智能技術。因此，我們正在準備從今年 6 月開始連續進行重大更新。

First of all, we are going to have an overhaul of UX based on customer behaviors. This includes a more personalized home screen and a more user-friendly UX transformation as well as allowing younger users under the age of 14 to join the platform as well as providing social ID feature. So this will help bring down the entry barriers.

首先，我們將根據客戶行為對用戶體驗進行全面改革。這包括更加個性化的主屏幕和更加人性化的用戶體驗轉換，以及允許 14 歲以下的年輕用戶加入該平台以及提供社交 ID 功能。因此，這將有助於降低進入壁壘。

Secondly, we will continue to launch AI tech-related based services that only a telco operator can provide. So in the first quarter, we already launched various services, including English language learning and professional baseball, multiplay game and collaborative character. And in the second half of the year, we are going to offer new services, including AI telephone where you can get briefed on the content of the conversation by utilizing the unique assets that only telcos have.

其次，我們將繼續推出只有電信運營商才能提供的基於人工智能技術的服務。所以在第一季度，我們已經推出了各種服務，包括英語學習和職業棒球、多人遊戲和協作角色。在今年下半年，我們將提供新服務，包括 AI 電話，您可以利用只有電信公司才有的獨特資產來了解對話內容。

Third, we would like to offer more natural smart conversations using an AI agent. So we have this strategic partnership with Scatter Lab. And through this partnership, we are planning to launch a new agent or AI agent that is able to hold empathetic conversation in June. So this will offer conversations not only in terms of knowledge, but also emotion and entity. And at the same time, we are going to have a major update of the large language model that SK Telecom based on the accumulated experiences and it is going to be presented in June.

第三，我們希望使用 AI 代理提供更自然的智能對話。因此，我們與 Scatter Lab 建立了戰略合作夥伴關係。通過這種合作關係，我們計劃在 6 月推出能夠進行同理心對話的新代理或 AI 代理。因此，這不僅會提供知識方面的對話，還會提供情感和實體方面的對話。同時，我們將根據積累的經驗對 SK Telecom 的大型語言模型進行重大更新，並將於 6 月推出。

The next topic is global. We are going to pursue global expansion by expanding the AI ecosystem and global presence expansion through collaboration with global telco companies and big tech companies.

下一個主題是全球性的。我們將通過與全球電信公司和大型科技公司的合作，通過擴大人工智能生態系統和全球影響力擴張來追求全球擴張。

First of all, we would like to establish a global telco alliance. At the MWC in February, we had meetings with various overseas telecom operators, and we made a proposal to create an alliance to build -- jointly build differentiated AI services by utilizing their own services and technology capabilities. We were received by very positively from these telco -- potential telco partners, and we're going to soon announce this alliance officially.

首先，我們想建立一個全球電信聯盟。在2月份的MWC上，我們和海外的各個電信運營商進行了會談，我們提出了建立一個聯盟來構建——利用各自的服務和技術能力，共同構建差異化的AI服務。這些電信公司——潛在的電信合作夥伴非常積極地接待了我們，我們將很快正式宣布這一聯盟。

Secondly, we're going to continue to pursue collaboration with big tech companies. We are currently pursuing partnerships and collaboration with not only the telecom operators, but also big tech companies, including those specialized in large language models and AI. And in doing so, we can further advance our technology, and we will be able to accelerate global expansion at a scale by pulling off our capabilities of our partners.

其次，我們將繼續尋求與大型科技公司的合作。我們目前正在尋求與電信運營商以及大型科技公司建立夥伴關係和協作，包括那些專門從事大型語言模型和人工智能的公司。通過這樣做，我們可以進一步推進我們的技術，並且我們將能夠通過利用我們合作夥伴的能力來大規模加速全球擴張。

[Interpreted] I am Kim Young-joon Head of A. technology. As was mentioned previously, for A., we will employ a 2-track strategy in which on one part, we will continue to advance our own technology and at the same time, pursue technology partnership with external partners. When it comes to the generative language model, you may see that the amount of innovation that we used to have in 1 year is taking place in just 1 week. So the speed of development is very rapid. In order to catch up to this rate of development, we will continue to evolve our own technology and accumulate data while at the same time, actively pursuing collaboration with external partners.

[翻譯] 我是金永俊 A. 技術負責人。如前所述，對於 A.，我們將採用雙軌戰略，一方面，我們將繼續推進自身技術，同時尋求與外部合作夥伴的技術合作。說到生成語言模型，你可能會看到過去 1 年的創新量現在只用了 1 週。所以發展速度非常快。為了趕上這個發展速度，我們將繼續發展自己的技術和積累數據，同時積極尋求與外部合作夥伴的合作。

So first of all, how we will advance our own technology. As for our own technology, we're applying data and learning models used by big tech companies to expand domain-related expertise. Specifically, we used to have our own large language model that was 18 billion. We're going to upgrade that 39 billion in the first half of this year, and we will continue to evolve for our language model by utilizing the reinforcement learning method based on human feedback, which is critical for advancing language models.

所以首先，我們將如何推進我們自己的技術。至於我們自己的技術，我們正在應用大型科技公司使用的數據和學習模型來擴展與領域相關的專業知識。具體來說，我們曾經有自己的大型語言模型，有 180 億。我們將在今年上半年升級這 390 億，我們將繼續通過基於人類反饋的強化學習方法來改進我們的語言模型，這對於推進語言模型至關重要。

We're also planning to develop an integrated rank within this year so that we can connect customers with very specific tasks that they need and also can provide an integration with -- and lead customers to the right language model because we expect that there will be multiple language -- large language models in the future.

我們還計劃在今年內開發一個集成排名，以便我們可以將客戶與他們需要的非常具體的任務聯繫起來，還可以提供集成 - 並引導客戶使用正確的語言模型，因為我們預計會有多語言——未來的大型語言模型。

Next, I'd like to comment on our plans for external partnerships. We're currently in the process of having conversations with various domestic and overseas companies so that we can pursue cooperation with generative AI leading companies.

接下來，我想談談我們的對外合作計劃。我們目前正在與國內外多家公司進行對話，以便我們可以尋求與生成人工智能領先公司的合作。

We will continue -- we will jointly develop a language model that has strong social features and is able to provide conversation in the knowledge domain by working together with Scatter Lab. Thank you.

我們將繼續——我們將與 Scatter Lab 合作，共同開發一種具有強大社交功能並能夠提供知識領域對話的語言模型。謝謝。

[Interpreted] The last question will be presented by Jae-min Ahn from NH Investment & Securities.

[解讀] 最後一個問題將由 NH Investment & Securities 的 Jae-min Ahn 提出。

[Interpreted] I'm Ahn Jae-min from NH Securities. Recently, there have been some talks on the potential the fourth telco in Korea. So I'd like to ask you to give us some update on the current situation, your take on the government's position and your response strategy.

[翻譯] 我是 NH Securities 的 Ahn Jae-min。最近，有一些關於韓國第四家電信公司的討論。因此，我想請您介紹一下當前情況的最新情況、您對政府立場的看法以及您的應對策略。

[Interpreted] Yes, there have been some media reports about the introduction of a potential #4 telco in Korea. So I can see that there is some interest in the market. And regarding that, [Ryu Young-sang] Head of CR Strategy Office, will address the question.

[解讀] 是的，有一些媒體報導稱在韓國引入了一家潛在的第四大電信公司。所以我可以看到市場有一些興趣。關於這一點，[Ryu Young-sang] CR 戰略辦公室主任將解決這個問題。

[Interpreted] I'm [Ryu Young-sang], Head of CR Strategy Office. In January this year, the government mentioned that they're considering the potential license to another -- a new telco in Korea in order to facilitate competition in the market and utilize 28 gigahertz of bandwidth. However, this is something that the government is pursuing at the policy level. So I hope that you will understand that it is not our position as a telco to express any explicit view.

[翻譯] 我是[Ryu Young-sang]，CR戰略辦公室主任。今年 1 月，政府提到他們正在考慮向另一家公司——韓國的一家新電信公司授予許可，以促進市場競爭並利用 28 GHz 的帶寬。但是，這是政府在政策層面追求的東西。因此，我希望您能理解，作為一家電信公司，我們無權表達任何明確的觀點。

So in January, the government announced a plan to invite a new player for the telecom market, and they're planning to announce and announced that the frequency allocation plan in June. So some -- we understand that some businesses are considering this, but we will have to wait and see until June when the specific announcement is made by the government.

所以在 1 月份，政府宣布了一項為電信市場邀請新參與者的計劃，他們計劃在 6 月份宣布並宣布頻率分配計劃。所以一些 - 我們知道一些企業正在考慮這一點，但我們必須等到 6 月政府發布具體公告時再看。

[Interpreted] This concludes the earnings conference call for the first quarter of 2023 of SK Telecom. I'm sure you may have some additional inquiries and questions. Please contact the Investor Relations team at SK Telecom. We'll do our best to address your questions. Thank you very much.

[解讀] SK 電訊 2023 年第一季度財報電話會議到此結束。我相信您可能還有一些其他的詢問和問題。請聯繫 SK Telecom 的投資者關係團隊。我們會盡力解答您的問題。非常感謝。

[Portions of this transcript that are marked Interpreted were spoken by an interpreter present on the live call.]

[此抄本中標記為已翻譯的部分是由現場通話中在場的口譯員說的。]