SK Telecom Co Ltd (SKM) 2024 Q3 法說會逐字稿

(spoken in Korean)

（韓文）

Good morning and good evening. Thank you all for joining the conference call for the earnings results of SK Telecom. (Operator Instructions) Now, we will begin the presentation on SK Telecom's third-quarter earnings results of the fiscal year 2024.

早安，晚上好。感謝大家參加有關 SK 電訊獲利結果的電話會議。（操作員說明）現在，我們將開始介紹 SK Telecom 2024 財年第三季獲利結果。

(spoken in Korean)

（韓文）

Good afternoon. I am Hee Jun Chung, IRO of SK Telecom. Thank you for joining SK Telecom's earnings conference call.

午安.我是 SK Telecom 的 IRO，Hee Jun Chung。感謝您參加 SK Telecom 的財報電話會議。

(spoken in Korean)

（韓文）

Today, we will first deliver a presentation on major events, 2024 Q3 earnings highlights, and business performances, which will be followed by the Q&A session.

今天，我們將首先介紹重大事件、2024年第三季獲利亮點和業務表現，然後進行問答環節。

(spoken in Korean)

（韓文）

The call is attended by our executives from relevant business divisions, including Yang Seop Kim, CFO of SK Telecom, and we are providing consecutive interpretation for the call.

我們相關業務部門的高階主管參加了此次電話會議，其中包括 SK Telecom 財務長 Yang Seop Kim，我們為此次電話會議提供交替傳譯。

(spoken in Korean)

（韓文）

I would like to remind you that all forward-looking statements are subject to change, depending on various factors, such as market and macro situations.

我想提醒您的是，所有前瞻性陳述都可能發生變化，具體取決於市場和宏觀情況等多種因素。

(spoken in Korean)

（韓文）

Let me now present our CFO.

現在讓我介紹一下我們的財務長。

(spoken in Korean)

（韓文）

Good afternoon. This is Yang Seop Kim, CFO of SK Telecom.

午安.我是 SK Telecom 財務長 Kim Yang Seop。

(spoken in Korean)

（韓文）

After the spin-off in November 2021, SK Telecom announced a new vision to focus solely on telecommunications and AI. For the past three years, the company has established an AI Pyramid Strategy, mobilized enterprise-wide capabilities to become a global AI company, and pursued a number of partnerships and investments. As the recently announced Corporate Value-Up Plan illustrates, SK Telecom will now show you specific ways to make money using AI.

2021 年 11 月分拆後，SK Telecom 宣布了新願景，將專注於電信和人工智慧。過去三年，該公司製定了人工智慧金字塔策略，調動全企業能力成為全球人工智慧公司，並尋求多項合作和投資。正如最近宣布的企業價值提升計畫所示，SK Telecom 現在將向您展示使用人工智慧賺錢的具體方法。

(spoken in Korean)

（韓文）

There are three main ways to generate profit with AI that SK Telecom is pursuing.

SK Telecom 追求的人工智慧獲利方式主要有三種。

(spoken in Korean)

（韓文）

First is AI data centers. In the DC market, demand triggered by AI continues to exceed supply. We have expensive DC operational experience, AI solutions secured together with domestic and global partners, and nationwide base stations that can be utilized as AI infrastructure. SK Telecom aims to become a leader in the global AI data center market.

首先是人工智慧資料中心。在DC市場，人工智慧引發的需求持續超過供給。我們擁有昂貴的資料中心營運經驗、與國內外合作夥伴共同提供的人工智慧解決方案以及可用作人工智慧基礎設施的全國性基地台。SK Telecom 的目標是成為全球人工智慧資料中心市場的領導者。

(spoken in Korean)

（韓文）

Second is AI B2B. Enterprise business is expected to see rapid market expansion in the AI era. We will actively utilize generative AI foundational models secured through in-house effort and external partnerships, and mobilize B2B capabilities available within the group to identify brand use cases and win contracts.

其次是AI B2B。企業業務可望在人工智慧時代迎來快速市場擴張。我們將積極利用透過內部努力和外部合作夥伴確保的生成式人工智慧基礎模型，並調動集團內部可用的 B2B 能力來識別品牌用例並贏得合約。

(spoken in Korean)

（韓文）

Third is AI B2C. The B2C service market has been led by platform companies based on advertisement business models. However, advertising revenue is not sufficient to cover the cost of building infrastructure needed to provide AI services that are becoming popular recently.

第三是AI B2C。B2C服務市場一直由基於廣告商業模式的平台公司主導。然而，廣告收入不足以涵蓋提供最近流行的人工智慧服務所需的基礎設施建設成本。

As such, subscription business models are gaining attention. Given this trend, new opportunities will be opening up for telcos that already have subscription business models. SK Telecom has already established a strong subscription model with T Universe, and we ask for your support and interest in how we will advance our A. and global personal AI agent services.

因此，訂閱業務模式正在受到關注。鑑於這一趨勢，已經擁有訂閱業務模式的電信公司將迎來新的機會。SK Telecom 已經與 T Universe 建立了強大的訂閱模式，我們請求您支援並關注我們如何推進我們的 A. 和全球個人人工智慧代理服務。

(spoken in Korean)

（韓文）

Let me now report on the consolidated financial results for Q3 2024.

現在讓我報告 2024 年第三季的合併財務表現。

(spoken in Korean)

（韓文）

Consolidated revenue reported KRW4,532.1 billion, up 2.9% year over year, driven by the stable growth of roaming and B2B solution business. Operating income posted KRW533.3 billion, up 7.1% year over year, thanks to the stabilization of costs such as marketing and depreciation. The positive results show the impact of strengthening business fundamentals through operational improvement and enhancing efficiency with a company-wide adoption of AI. Net income posted KRW280.2 billion.

在漫遊和B2B解決方案業務穩定成長的推動下，綜合收入達到45,321億韓元，年增2.9%。由於行銷和折舊等成本的穩定，營業收入達到 5,333 億韓元，較去年同期成長 7.1%。積極的結果表明，透過在全公司範圍內採用人工智慧來改善營運和提高效率，可以加強業務基礎，從而產生影響。淨利達2,802億韓元。

(spoken in Korean)

（韓文）

On a non-consolidated basis, revenue posted KRW3,203.2 billion, up 1.7% YoY. Operating income and net income reported KRW457 billion and KRW222.4 billion, respectively.

非合併營收為 32,032 億韓元，較去年同期成長 1.7%。營業收入和淨利分別為 4,570 億韓元和 2,224 億韓元。

(spoken in Korean)

（韓文）

Let me now turn to business highlights for Q3 2024 and strategic directions.

現在讓我談談 2024 年第三季的業務亮點和策略方向。

(spoken in Korean)

（韓文）

First, data center revenue grew 14% year over year, thanks to higher utilization of data centers. In terms of AI monetization, AIDC is the business that can expect the most short-term results. We aim to be a leader in both the Korean and global DC market by applying emerging cooling technology of SK Group for energy efficiency, supplying GPU power of Lambda effectively, and employing AI data center solutions of Penguin solutions.

首先，得益於資料中心利用率的提高，資料中心營收年增14%。在AI變現方面，AIDC是最能期待短期成果的業務。我們的目標是透過應用SK集團的新興冷卻技術來提高能源效率，有效地為Lambda提供GPU功率，並採用Penguin解決方案的AI資料中心解決方案，成為韓國和全球DC市場的領導者。

(spoken in Korean)

（韓文）

As we announced at the AI Summit this week, we will establish the AI Infrastructure Superhighway to evolve it as core infrastructure that will accelerate the development of Korea's AI ecosystem. The superhighway will enable nationwide connection through Edge AI based on AI data centers as regional hubs and GPU as a service in the Seoul metropolitan region.

正如我們在本週的人工智慧高峰會上宣布的那樣，我們將建立人工智慧基礎設施高速公路，將其發展為加速韓國人工智慧生態系統發展的核心基礎設施。這條超級高速公路將透過邊緣人工智慧實現全國連接，該邊緣人工智慧以人工智慧資料中心作為區域中心和首爾都會區的GPU即服務為基礎。

(spoken in Korean)

（韓文）

We are currently developing the telco-specific LLM together with the members of the Global Telco AI Alliance. We aim to launch it commercially in the first half of next year, and we're in the process of establishing a global AI joint venture for the LLM service. We plan to first apply the telco-specific LLM to our own customer services through customer contact centers and T World to assess its performance in effect.

我們目前正在與全球電信人工智慧聯盟的成員一起開發電信特定的法學碩士。我們的目標是在明年上半年將其商業化，並且我們正在為法學碩士服務建立全球人工智慧合資企業。我們計劃首先透過客戶聯絡中心和 T World 將電信特定的 LLM 應用到我們自己的客戶服務中，以評估其效果。

(spoken in Korean)

（韓文）

Next, regarding AI services, we implemented major changes to A. in August to provide natural conversational experience and professional services through diverse agents, and strengthen search and other everyday convenience features. Thanks to the overhaul, the cumulative downloads as of the end of September exceeded 5.5 million. In October, we upgraded T Phone to A. phone with AI phone features and launched the PC version of multi LLM agent. We plan to expand the application of A.'s AI features to various services.

接下來，在人工智慧服務方面，我們在8月份對A.進行了重大改變，透過多樣化的代理商提供自然的對話體驗和專業服務，並加強搜尋和其他日常便利功能。得益於此次大修，截至9月底累計下載量突破550萬次。10月，我們將T Phone升級為具有AI電話功能的A.phone，並推出多LLM代理PC版。我們計劃將A.的AI功能的應用擴展到各種服務。

(spoken in Korean)

（韓文）

In the MNO business, our 5G subscribers recorded 16.58 million as of the end of September 2024, accounting for 73% of the total subscriber base. SK Broadband secured 9.62 million pay TV subscribers and 7.11 million broadband subscribers as of the end of Q3. Our strategy for the fixed and mobile business aims to improve profitability through a stable market operation while defending the top line by focusing on attracting and retaining high ARPU subscribers.

在MNO業務方面，截至2024年9月底，我們的5G用戶數為1,658萬戶，佔總用戶數的73%。截至第三季末，SK Broadband 擁有 962 萬付費電視用戶和 711 萬寬頻用戶。我們的固定和行動業務策略旨在透過穩定的市場營運提高獲利能力，同時透過專注於吸引和留住高 ARPU 用戶來捍衛營收。

(spoken in Korean)

（韓文）

In Q3, enterprise business sustained a growth trend of 8% year over year. The cloud business also saw a revenue growth of 30% year over year with stable fixed line business performance. Enterprise AI business continues to win meaningful orders, and we will grow the enterprise AI business as a key pillar of B2B business and develop concrete ways to generate profit.

第三季度，企業業務年增8%的成長態勢。雲端業務營收年增30%，固網業務表現穩定。企業人工智慧業務持續贏得有意義的訂單，我們將把企業人工智慧業務發展為B2B業務的關鍵支柱，並制定具體的獲利方式。

(spoken in Korean)

（韓文）

Finally, let me turn to shareholder returns.

最後，讓我談談股東回報。

(spoken in Korean)

（韓文）

The DPS for Q3 was determined at KRW830, the same as Q2. For the remainder of 2024 and beyond, SK Telecom will strive to maximize corporate value as well as shareholder value.

第三季的DPS確定為830韓元，與第二季相同。在 2024 年剩餘時間及以後，SK Telecom 將努力實現企業價值和股東價值最大化。

(spoken in Korean)

（韓文）

We look forward to your continued support and encouragement. Thank you.

我們期待您持續的支持與鼓勵。謝謝。

(spoken in Korean)

（韓文）

We will now begin the Q&A session.

我們現在開始問答環節。

(spoken in Korean) (Operator Instructions) (spoken in Korean) Seung Woong Lee, Yuanta Securities.

（韓語）（操作員指示）（韓語）Seung Woong Lee，元大證券。

(spoken in Korean)

（韓文）

I'm Lee Seung Woong from Yuanta Securities. I would like to ask you a couple of questions. First of all, when we look at the earnings results for the third quarter, we see that there's a larger recognition of non-operating losses, which has led to a smaller net income. I wonder if this will have any substantial impact on your year-end dividend.

我是元大證券的李承雄。我想問你幾個問題。首先，當我們看第三季的獲利結果時，我們發現非經營性虧損的確認較大，這導致淨利較小。我不知道這會對你們的年終股利產生什麼實質影響嗎？

The second question has to do with your Corporate Value-up Plan, which you announced recently. However, SK Telecom is not included in the Value-Up index. So I would like to understand your responses to that situation and the background behind your disclosure of the Corporate Value-Up Plan. Thank you.

第二個問題與您最近宣布的企業價值提升計畫有關。不過，SK Telecom 並未納入 Value-Up 指數。所以我想了解您對這種情況的反應以及您披露企業價值提升計劃的背景。謝謝。

(spoken in Korean)

（韓文）

This is CFO of SK Telecom. Thank you for your questions. I would first like to address your question on adding more color on our year-end dividend.

這是 SK 電訊的財務長。謝謝您的提問。我首先想回答一下您關於為我們的年終股息增添更多色彩的問題。

(spoken in Korean)

（韓文）

As you may already know, SK Telecom announced a new shareholder return policy in April, involving the use of more than 50% of consolidated net income as funds for shareholder return. And for the entire year so far, the DPS per quarter has been determined at KRW830.

大家可能已經知道，SK電訊在4月宣布了新的股東回報政策，涉及將綜合淨利潤的50%以上用作股東回報資金。到目前為止，全年每季的 DPS 已確定為 830 韓元。

(spoken in Korean)

（韓文）

As for total shareholder return for the entire year, it very much depends on the closing of the fourth quarter earnings and the BOD deliberation. So I won't be able to give you a definite answer now, but the company remains committed to the idea that we need to maintain a stable dividend trend as much as possible because dividend is crucial for our corporate valuation.

至於全年股東總回報，很大程度上取決於第四季財報的結束和董事會的審議。所以我現在無法給你一個明確的答案，但公司仍然致力於我們需要盡可能保持穩定的股息趨勢，因為股息對我們的企業估值至關重要。

(spoken in Korean)

（韓文）

As you pointed out, in the third quarter, consolidated net income fell about 9% year over year due to the recognition of valuation losses from investment assets as non-operating expenses. But I would like to make it very clear that these valuation losses are one-off non-recurring items, so they will not be included when calculating funds for dividend payout.

正如您所指出的，第三季度，由於將投資資產的估值損失確認為營業外支出，合併淨利潤年減約9%。但我想非常明確的是，這些估值損失是一次性的非經常性項目，因此在計算股息支付資金時不會將其納入。

(spoken in Korean)

（韓文）

Now, I'd like to address your question on our company's Value-Up disclosure.

現在，我想回答一下您關於我們公司的 Value-Up 揭露的問題。

(spoken in Korean)

（韓文）

We reported the Corporate Value-Up program to the Board on October '24 and made the disclosure.

我們於 24 年 10 月向董事會報告了企業價值提升計畫並進行了揭露。

(spoken in Korean)

（韓文）

This is the first year when companies are encouraged to disclose their Value-Up programs. In consideration of the purpose of this program, we prepared our Value-Up plan based on a clear analysis of the current status and presentation of the future vision so that the company value can be properly acknowledged by the investors.

今年是鼓勵公司披露其增值計劃的第一年。考慮到該計劃的目的，我們在清晰分析現狀和闡述未來願景的基礎上，制定了價值提升計劃，以便公司價值能夠得到投資者的正確認可。

(spoken in Korean)

（韓文）

We included ROE, shareholder return ratio, and AI Vision 2030 as key indicators. Our ROE is around 9%, already the highest in the industry, but we aim to further improve it through operational improvement and AI transformation.

我們將 ROE、股東回報率和 AI Vision 2030 作為關鍵指標。我們的ROE在9%左右，已經是業界最高的，但我們的目標是透過營運改善和人工智慧轉型進一步提高它。

(spoken in Korean)

（韓文）

And for shareholder return, we will maintain the current shareholder return policy of using more than 50% of adjusted consolidated net income for dividend payout, which is already the top level in the Korean stock market. And also through AI Vision 2030, we aim to demonstrate our commitment to future growth beyond telco that proposing the total revenue target of KRW30 trillion and the AI portion of 35% by 2030.

而在股東回報方面，我們將維持目前的股東回報政策，將調整後合併淨利潤的50%以上用於股利支付，這已經是韓國股市的頂級水準。此外，透過《AI Vision 2030》，我們旨在展示我們對電信以外的未來成長的承諾，提出到 2030 年總收入目標達到 30 兆韓元，人工智慧比例達到 35%。

(spoken in Korean)

（韓文）

By making a report to the BOD, we demonstrated our strong commitment and enhance the plan's credibility. And going forward, we will develop specific action plans and conduct regular monitoring on implementation, and we will actively communicate with the market.

透過向董事會提交報告，我們展示了我們的堅定承諾，並提高了計劃的可信度。下一步，我們將制定具體的行動計畫並定期監測實施情況，並積極與市場溝通。

(spoken in Korean)

（韓文）

As you mentioned, no telcos, including SK Telecom, were included in the core value of index announced by the Korean Exchange on September '24. But we will strive to enhance corporate value and actively communicate with the market so that we can be included in the index in the future. Thank you.

正如您所提到的，韓國交易所於 24 月 9 日公佈的指數核心價值中沒有包括 SK Telecom 在內的任何電信公司。但我們會努力提升企業價值，並積極與市場溝通，以便未來能納入指數。謝謝。

(spoken in Korean) Soojin Kim, Mirae Asset Securities.

（韓文）Soojin Kim，未來資產證券公司。

(spoken in Korean)

（韓文）

Thank you for this opportunity. I would like to ask two questions. As you mentioned already, SK Telecom has been pursuing diverse businesses regarding and using AI. And I'd like to understand AI's contribution to your earnings, and also the directions for your AI service development and business models.

感謝您給我這個機會。我想問兩個問題。正如您已經提到的，SK Telecom 一直在開展有關和使用人工智慧的多元化業務。我想了解人工智慧對你們的收入貢獻，以及你們的人工智慧服務發展和商業模式的方向。

The second question has to do with the Perplexity Pro promotion. And I understand that this promotion has been receiving positive response in the market. So what kind of benefits did you reap from this promotion, maybe in terms of the increase in the number of subscribers to A. or contributions to the earnings overall?

第二個問題與 Perplexity Pro 促銷有關。據了解，此次促銷活動得到了市場的正面回應。那麼，您從這次促銷活動中獲得了哪些好處，也許是增加了 A. 的訂閱者數量，或者是對整體收入的貢獻？

(spoken in Korean)

（韓文）

Thank you for your questions. Let me first address your question on our monetization plans using AI.

謝謝您的提問。讓我先回答您關於我們使用人工智慧的貨幣化計劃的問題。

(spoken in Korean)

（韓文）

For us, under the AI Pyramid Strategy, SK Telecom is developing concrete monetization plans, focusing on AIDC, AI B2B, and AI B2C as the three main domains to generate profit using AI.

對我們來說，在AI金字塔策略下，SK電訊正在製定具體的貨幣化計劃，重點關注AIDC、AI B2B和AI B2C作為利用AI產生利潤的三個主要領域。

(spoken in Korean)

（韓文）

First of all, AI Data Center is key infrastructure for AI, and it is an area that we can pursue first. Based on the partnership agreement with Lambda that was signed in the second quarter, we began to deploy NVIDIA's GPUs in Gasan Center. And when Lambda AI data center is opened in December, as scheduled, we will be able to provide the GPU as a service, which is an AI cloud service.

首先，人工智慧資料中心是人工智慧的關鍵基礎設施，也是我們可以優先發展的領域。根據第二季與 Lambda 簽署的合作協議，我們開始在加山中心部署 NVIDIA 的 GPU。當Lambda AI資料中心如期在12月開放時，我們將能夠提供GPU as a service，這是AI雲端服務。

(spoken in Korean)

（韓文）

In addition, we will combine energy solutions to GPU as a service through cooperation with the group to secure and validate solutions optimized for AI data centers and pursue global expansion.

此外，我們將透過與該集團的合作，將能源解決方案與GPU即服務結合，以確保和驗證針對AI資料中心最佳化的解決方案，並尋求全球擴張。

(spoken in Korean)

（韓文）

Second, AI B2B market is about selling AI solutions for enterprise customers, which has a very high growth potential. And for this market, in addition to cooperation with big tech companies such as Anthropic and OpenAI that the company has been pursuing, A.X, that we have developed on our own, is also becoming increasingly important in terms of security and cost.

其次，AI B2B市場是為企業客戶銷售AI解決方案，具有非常高的成長潛力。而對於這個市場，除了公司一直追求的Anthropic、OpenAI等科技大公司的合作之外，我們自己開發的A.X在安全性和成本方面也變得越來越重要。

(spoken in Korean)

（韓文）

So for AI enterprise business, we will pursue mutual cooperation at the group level to satisfy AI needs of group affiliate companies as well as corporate clients and further expand globally.

所以對於人工智慧企業業務，我們將尋求集團層面的相互合作，以滿足集團附屬公司以及企業客戶的人工智慧需求，並進一步在全球擴展。

(spoken in Korean)

（韓文）

Finally, for the third domain, AI B2C, SK Telecom is indeed the first company to enter the AI B2C market with A.. The app overhaul in the second quarter and the introduction of Perplexity have received positive responses in the market, and we were able to confirm domestic customers' strong interest in AI.

最後，對於第三個領域，AI B2C，SK Telecom 確實是第一家以 A 進入 AI B2C 市場的公司。客戶對AI的濃厚興趣。

(spoken in Korean)

（韓文）

Starting with the launch of A. phone, we will expand A. agents to more diverse external service domains, and we will be able to offer truly meaningful AI agent experience based on a deeper understanding of customers in diverse context.

從A.phone的推出開始，我們將把A.座席擴展到更多元化的外部服務領域，我們將能夠在更深入地了解不同背景下的客戶的基礎上，提供真正有意義的AI座席體驗。

(spoken in Korean)

（韓文）

And we will test the global marketability of global PAA through a closed beta testing within this year. And based on diverse service offerings both at home and abroad, we plan to explore monetization potentials of AI services going forward. Thank you.

我們將在今年內透過內測來測試全球PAA的全球適銷性。基於國內外多樣化的服務產品，我們計劃未來探索人工智慧服務的變現潛力。謝謝。

(spoken in Korean)

（韓文）

Now on your second question on the promotion with Perplexity, the Head of AI Growth Strategy will respond.

現在，關於您關於 Perplexity 促銷的第二個問題，AI 成長策略負責人將做出回應。

(spoken in Korean)

（韓文）

I am Lee Jae-shin, Head of AI Growth Strategy. We carried out the promotion for two months from September 4 for the Pro model of Perplexity, which was announced at the time of SK Telecom's investment of $10 million in Perplexity in the second quarter. In order to provide global level AI services to our customers, we offer one-year free subscription to Perplexity Pro model, which is worth about $20 per month to SK Telecom customers.

我是人工智慧發展策略主管李在信。我們從9月4日起對Perplexity Pro型號進行了為期兩個月的促銷活動，該促銷活動是在SK Telecom第二季度向Perplexity投資1000萬美元時宣布的。為了向我們的客戶提供全球水準的人工智慧服務，我們向 SK Telecom 客戶提供 Perplexity Pro 模式一年免費訂閱，每月價值約 20 美元。

(spoken in Korean)

（韓文）

Well, in the past, Perplexity carried out similar promotions in other countries such as Japan and Germany. And in Korea, thanks to the marketing capabilities and our channel competitiveness of SK Telecom, this (technical difficulty) was able to garner the largest number of customers in the shortest amount of time.

那麼，過去，Perplexity 在日本、德國等其他國家也曾進行類似的促銷活動。而在韓國，由於SK電訊的營銷能力和通路競爭力，這個（技術難度）能夠在最短的時間內獲得最多的客戶。

(spoken in Korean)

（韓文）

Thanks to this unprecedented level of success, SK Telecom has been able to pursue and forge partnership with Perplexity. And currently, our two companies are collaborating very closely in terms of technology and marketing.

由於這項前所未有的成功，SK Telecom 得以與 Perplexity 尋求並建立合作關係。目前，我們兩家公司在技術和行銷方面合作非常密切。

(spoken in Korean)

（韓文）

The two companies are currently working on developing AI products. And when the promotion is over, we will be able to offer Perplexity Pro model subscription to all customers, not just SK Telecom's customers, to all Korean people at much more favorable terms and conditions.

兩家公司目前正致力於開發人工智慧產品。促銷結束後，我們將能夠以更優惠的條款和條件向所有客戶（而不僅僅是 SK Telecom 的客戶）以及所有韓國人提供 Perplexity Pro 模式訂閱。

(spoken in Korean)

（韓文）

Now, in terms of cooperation on technology, SK Telecom and Perplexity are jointly developing Korean-enhanced AI search model by combining Perplexity's advanced AI search technology and SK Telecom's AI assets as well as technology so that this engine can take into consideration Korean-specific cultural context and provide responses that are tailored to the Korean users.

目前，在技術合作方面，SK Telecom 和 Perplexity 正在聯合開發韓國增強型 AI 搜尋模型，將 Perplexity 的先進 AI 搜尋技術與 SK Telecom 的 AI 資產和技術相結合，使該引擎能夠考慮韓國特有的文化。並提供適合韓國用戶的回應。

(spoken in Korean)

（韓文）

This promotion has demonstrated our capabilities in terms of marketing and SK Telecom's assets and technology as an AI company. We have both data, multimodal data, as well as X -- A.X LLM, AI data centers, and GPU farms. So you can see how we have capabilities across the entire value chain.

此次促銷展示了我們在行銷方面的能力以及SK Telecom作為人工智慧公司的資產和技術。我們既有數據、多模式數據，也有 X -- A.X LLM、AI 數據中心和 GPU 農場。因此，您可以看到我們如何在整個價值鏈上擁有能力。

(spoken in Korean)

（韓文）

In addition to our cooperation with Perplexity, we will continue to cooperate with various global AI companies to offer AI experience and choices to our customers and expand the market.

除了與Perplexity的合作外，我們還將繼續與全球各AI公司合作，為客戶提供AI體驗和選擇，以拓展市場。

Gamsahamnida.

伽姆薩哈姆尼達。

Thank you.

謝謝。

(spoken in Korean) Dong Ryun Lee, Macquarie Securities.

（以韓文發言）Dong Ryun Lee，麥格理證券。

(spoken in Korean)

（韓文）

Thank you for the opportunity to ask your questions. My first question is the impact of the launch of flagship handset series on your 5G subscriber edition as well as marketing costs. And my second question is to ask you for some updates on your cooperation with Penguin Solutions and Lambda for your AIDC business.

感謝您有機會提問。我的第一個問題是旗艦手機系列的推出對5G用戶版本以及行銷成本的影響。我的第二個問題是想請您了解您與 Penguin Solutions 和 Lambda 就 AIDC 業務合作的一些最新情況。

(spoken in Korean)

（韓文）

Thank you for your questions. And regarding your question on marketing expenses, the Head of Integrated Marketing Strategy Office will address.

謝謝您的提問。至於你提到的行銷費用問題，整合行銷策略室負責人會解答。

(spoken in Korean)

（韓文）

I'm [Kim Ji-hyeong], Head of the Integrated Marketing Strategy Office. In the third quarter, on top of Samsung Galaxy Foldables series launched in July, new iPhone series, which typically were released in the fourth quarter, were released early in September. So we had more diverse flagship handset lineups compared to the other quarters.

我是整合行銷策略室主任[金智亨]。第三季度，除了7月推出的三星Galaxy Foldables系列之外，通常在第四季發布的新iPhone系列也於9月初發布。因此，與其他季度相比，我們擁有更多樣化的旗艦手機產品線。

(spoken in Korean)

（韓文）

In addition to the effective flagship handsets, 5G price plans that add popular benefits such as Netflix's subscription discount are still very popular, which contributed also to sound earnings.

除了有效的旗艦手機外，添加Netflix訂閱折扣等熱門福利的5G價格計劃仍然很受歡迎，這也為穩健的盈利做出了貢獻。

(spoken in Korean)

（韓文）

Thanks to these factors, 5G subscriber net adds in the third quarter were 350,000, up 20% QoQ, and the 5G penetration rate is nearly 73%.

受這些因素的影響，第三季5G用戶淨增加35萬戶，較上季成長20%，5G滲透率接近73%。

(spoken in Korean)

（韓文）

And we believe that these outcomes have resulted from our focused efforts on services and price plans with differentiated benefits that the company has been emphasizing, as well as sophisticated marketing activities based on accurate analysis of customers' needs and preferences.

我們相信，這些成果是我們對公司一直強調的差異化效益的服務和價格計劃的集中努力，以及基於對客戶需求和偏好的準確分析的複雜行銷活動的結果。

(spoken in Korean)

（韓文）

Going forward, we will continue to implement this type of marketing strategy to generate strong revenue and improve profit in MNO business in the mature 5G market. Thank you.

展望未來，我們將繼續實施此類行銷策略，以在成熟的5G市場中產生強勁的收入並提高MNO業務的利潤。謝謝。

(spoken in Korean)

（韓文）

Next, I'd like to invite the Head of Enterprise Business Strategy Office to respond to your question on AI data centers.

以下請企業策略室負責人回答大家關於人工智慧資料中心的問題。

(spoken in Korean)

（韓文）

This is [Bae Jae-joon], Head of the Enterprise Business Strategy Office. Let me answer your question on our AI Data Center business.

我是[Bae Jae-joon]，企業經營策略辦公室主任。讓我回答您關於我們的人工智慧資料中心業務的問題。

(spoken in Korean)

（韓文）

Of the AI Pyramid Strategy in the AI infrastructure domain, with the rise of generative AI, there is a big growth in demand for AI data centers. Against this backdrop, we aim to lead the global AI DC ecosystem through partnerships with Lambda and Penguin solutions.

在AI基礎設施領域的AI金字塔策略中，隨著生成式AI的興起，對AI資料中心的需求大幅增加。在此背景下，我們旨在透過與 Lambda 和 Penguin 解決方案的合作，引領全球 AI DC 生態系統。

(spoken in Korean)

（韓文）

First of all, in December this year, we will open the first AI data center in the Asia-Pacific region together with Lambda. And we plan to deploy thousands of GPUs in the next three years to provide an optimal environment for high-density GPU server operation. And we plan to use the data center to start a subscription-based AI cloud model, which is the GPU-as-a-service business.

首先，今年12月，我們將與Lambda一起開設亞太地區第一個AI資料中心。我們計劃在未來三年內部署數千個GPU，為高密度GPU伺服器運作提供最佳環境。而我們計劃利用資料中心啟動基於訂閱的AI雲模式，也就是GPU即服務業務。

(spoken in Korean)

（韓文）

Our core competitiveness lies in our own technological capabilities as well as partnerships with global AI companies. Through cooperation with Penguin Solutions that has expertise in large-scale AI cluster design, implementation, and operation, we are strengthening AIDC total solution capabilities, which are going to play a key role in securing leadership in the global AI data center market.

我們的核心競爭力在於自身的技術能力以及與全球人工智慧公司的合作關係。透過與擁有大規模AI集群設計、實施和營運經驗的Penguin Solutions合作，我們正在增強AIDC整體解決方案能力，這將為確保全球AI資料中心市場的領先地位發揮關鍵作用。

(spoken in Korean)

（韓文）

Also, in terms of AI revenue generation, among the three domains of AI value chain, we expect the most rapid revenue generation in AI data centers and GPU-as-a-service business will be the first step.

此外，就人工智慧創造收入而言，在人工智慧價值鏈的三個領域中，我們預期人工智慧資料中心和GPU即服務業務將是創造收入最快的第一步。

(spoken in Korean)

（韓文）

In the rapidly changing AI market environment, we also plan to introduce various technology for efficient AI data center operation. In particular, we are considering ways to reduce power consumption and operational costs by utilizing DSIM, an immersion cooling technology. And we're currently conducting a proof of concept in Bundang. These technologies are expected to further improve cost efficiency.

在快速變化的AI市場環境下，我們也計劃引進各種技術來實現AI資料中心的高效運作。特別是，我們正在考慮透過利用 DSIM（一種浸入式冷卻技術）來降低功耗和營運成本的方法。我們目前正在盆唐進行概念驗證。這些技術可望進一步提高成本效率。

(spoken in Korean) Hoi Jae Kim, Daishin Securities.

（韓文）Hoi Jae Kim，大信證券。

(spoken in Korean)

（韓文）

I'm Kim Hoi Jae from Daishin Securities. My question has a little bit of overlap with the previous question. In your Value-Up plan, you presented the 2030 targets, so revenue of KRW30 trillion and the AI portion of 35%. So I'd like to understand the portion of AI in your total revenue as of today, and what is your expectation going forward?

我是大信證券的 Kim Hoi Jae。我的問題與上一個問題有一點重疊。在您的 Value-Up 計畫中，您提出了 2030 年的目標，收入為 30 兆韓元，人工智慧部分為 35%。所以我想了解截至目前人工智慧在你們總收入中所佔的比例，以及你們對未來的期望是什麼？

(spoken in Korean)

（韓文）

Thank you for your question. I'd like to comment on our 2030 targets.

謝謝你的提問。我想談談我們的 2030 年目標。

(spoken in Korean)

（韓文）

For the past three years, SK Telecom has been actively pursuing the AI Pyramid Strategy. And when it comes to areas for AI monetization, we've concluded that AIDC, AI B2B, and AI B2C will be the three main areas, and we've decided to focus on these areas.

過去三年來，SK電訊一直積極推行AI金字塔戰略。在人工智慧變現領域，我們得出的結論是AIDC、AI B2B、AI B2C將是三個主要領域，我們決定專注於這些領域。

(spoken in Korean)

（韓文）

Now, as for AIDC and infrastructure, AI B2B and AI B2C, in all of these markets, there is a rapid growth in demand. And so SK Telecom aims to develop services as quickly as possible so that we can gain leadership in these rapidly growing markets and continue to become an AI company.

現在，對於AIDC和基礎設施、AI B2B和AI B2C，這些市場的需求正在快速成長。因此，SK Telecom 的目標是盡快開發服務，以便我們能夠在這些快速成長的市場中獲得領導地位，並繼續成為一家人工智慧公司。

(spoken in Korean)

（韓文）

First of all, in the AI DC market, there is already demand exceeding supply so we believe that we will be able to generate revenue in the short period -- in the near future, and there is much more visibility in monetization in the AI DC market. And moving on to the AI B2B market, with the development of generative AI, we expect very big growth potential of this particular market. And the B2C market has been led by platform companies, but we are seeing a paradigm shift in this B2C market. This will bring new opportunities for SK Telecom.

首先，在AI DC市場上，已經出現了供不應求的情況，所以我們相信我們將能夠在短期內——在不久的將來——產生收入，並且AI DC的貨幣化有更多的可見性市場。再看看人工智慧B2B市場，隨著生成式人工智慧的發展，我們預期這個特定市場會有很大的成長潛力。B2C 市場一直由平台公司主導，但我們正在看到這個 B2C 市場的典範轉移。這將為SK電訊帶來新的機會。

(spoken in Korean)

（韓文）

So our 2030 targets of total revenue of KRW30 trillion and the AI portion of 35% are indeed ambitious targets. But please consider that our Value-Up plan demonstrates our strong to increasing the portion of AI to the level of the current telecommunications business so that we can transform into a global AI company. And as for the breakdown of revenue between telecommunications and AI, we are working on this, and we will soon be able to communicate with the market when details are ready.

因此，我們2030年總營收達到30兆韓元、人工智慧佔比達到35%的目標確實是個雄心勃勃的目標。但請考慮一下，我們的Value-Up計劃表明我們有能力將人工智慧的比例提高到當前電信業務的水平，以便我們能夠轉型為全球人工智慧公司。至於電信和人工智慧之間的收入細分，我們正在研究這個問題，等細節準備好後我們很快就能與市場溝通。

(spoken in Korean)

（韓文）

With this, we would like to conclude the earnings conference call for the third quarter of 2024 for SK Telecom. If you need further information or have additional inquiries, please feel free to contact the IR team. Thank you.

至此，我們結束 SK Telecom 2024 年第三季財報電話會議。如果您需要更多資訊或有其他疑問，請隨時聯繫 IR 團隊。謝謝。

Statements in English on this transcript were spoken by an interpreter present on the live call. The interpreter was provided by the company sponsoring this event.

本筆錄中的英語陳述是由現場通話中的口譯員說出的。口譯員由贊助本次活動的公司提供。