“New Businesses - Ready to harvest”

Company Report Vol. 4

Sep. 2013

This material contains forward-looking statements with respect to the financial condition, results of operations and business of

SK Telecom and its subsidiaries (the “Company”) and plans and objectives of the management of the Company. Statements

that are not historical facts, including statements about the Company‟s beliefs and expectations, are forward-looking

statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may

cause the actual results or performance of the Company to be materially different from any future results or performance

expressed or implied by such forward-looking statements.

The Company does not make any representation or warranty, expressed or implied, as to the accuracy or completeness of the

information contained in this management presentation, and nothing contained herein is, or shall be relied upon as, a promise

or representation, whether as to the past or the future. Such forward-looking statements were based on current plans,

estimates and projections of the Company and the political and economic environment in which the Company will operate in

the future, and therefore you should not place undue reliance on them.

Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update

publicly any of them in light of new information or future events. Additional information concerning these and other risk

factors are contained in the Company‟s latest annual report on Form 20-F and in the Company‟s other filings with the U.S.

Securities and Exchange Commission (SEC).

Disclaimer

Table of Contents

Strategic approach to new businesses

Monetization strategy

Collaborate with 3rd parties benefiting from spillover effect

Utilize mobile ad to monetize SKT‟s services

Expand media business opportunities

Increase presence in mCommerce

Seek global market opportunities to expand monetization platform

SKT‟ competitive edge in new growth business area

Growth engines

3

Strategic approach to new businesses

[New Business Strategic Direction]

Monetization strategy

Collaborate with 3rd parties benefiting from

spillover effect to expand market

Utilize mobile ad to monetize SKT‟s services

Expand media business opportunities

Increase presence in mCommerce

Seek global market opportunities to expand

monetization platform

Maximize platform and service synergy

to monetize offerings

Btv, hoppin, Tstore: Collaborate on services

and content sourcing

Bundling Tmap and Pickat services to create

synergy in LBS

SKT‟s new growth businesses are progressing toward the monetization phase. SKT is building

concrete monetization tools suitable for each business‟s characteristics and growth vision

Seeding & Incubating

•Create critical mass of loyal

users

•Focus on service population

Integration & Synergy

•Maximize synergy by

integrating platforms and

services

Monetization

•Formalize differentiated business

models based on

platform/service characteristics

4

Monetization strategy- Collaborate with 3rd parties

Health care solution „Health-on‟: Target companies with

corporate health programs

Smart hospital solution: Improve efficiency in patient care

and hospital mgt. Growing interest from major hospitals

In many cases, industry growth is facilitated by 3rd parties who indirectly receive economic

benefits. SKT seeks to improve profitability prospects by utilizing such spillover effect

Service Provider

Direct

Consumer

Service 3rd Party as a Facilitator

Positive externalities

☞ In the U.S, health insurance companies offer

discounts to employers who provide health

care services to their employees

[SKT‟s Businesses][Concept]

Healthcare

Smart nCare Service: Target car insurance companies to

improve service efficiency and cost reduction

Smart Car Service: Collaborating with Renault Samsung

Motors to embed T-map and melon services

BEMS, FEMS

Strict regulations on power consumption and CO2 emissions

Growing demand for BEMS(Building Energy Management

Service), FEMS (Factory) solutions (10 contracts from Hyundai

Dept. Store, Sampyo, and other companies in 2Q13)

Fee and incentives

Connected Car

5

[Note] SKT‟s connected car business

[Smart nCare Service]

Provides accident and service requirement notifications

by connecting the smartphone to vehicle black box

and OBD(on-Board Diagnostic) systems

Allows insurance companies to provide responsive and

reliable customer services, and reduce insurance

payout and legal expenses

Dongbu Insurance Co. Ltd., a Korean insurance

company, is promoting the Smart nCare Service

[Smart Car Service Platform]

Renault Samsung Motors has been embedding Tmap

and Melon as its navigation and entertainment system

since Sept. „12

Number of customers who chose the navigation service

option increased 2.5~3 folds

An electric car service platform equipped with battery

checking function to be launched in Oct. „13

SKT is supplying Kia Motors with UBO service since

Sept. „12

Basic service fee: 9,000 KRW/month (remote engine

control, emergency services, diagnostics)

Voice call: 6,000 KRW/month, Internet and Wi-Fi

Tethering: 10,000 KRW/month

SKT is expanding the breadth of monetization opportunities by widening the concept of

„Connectivity‟ to cars by utilizing its renowned Tmap, multimedia and mobile network

Safety

Accident alert/emergency

services

Car maintenance

Diagnostics/maintenance

Info

Real-time traffic infomation

Assist

Driving guide/record

[UBO Service]

6

Monetization strategy- Utilize mobile ad to monetize SKT‟s services

The market for mobile ad is expected to show rapid growth and play a critical role in the

growth of mobile businesses. Leveraging its services and platforms, and assets in the

advertising value-chain, SKT plans to further expand mobile ad as a source of growing revenue

Traditional

adOnline-ad Mobile-ad

+ Create new demand

(Long-tail economy*)

Advertising media

Ad network

Media rep.

Agency

Search adLocation-based

ad

+ New demand

Service Rank Inst. rate** Note

Tstore 26 54% App. Store

Smart Wallet 30 46% Electronic Wallet

Tmap 32 45% Navigation Map

hoppin 40 41% VOD

Nate 46 38% Portal

* Long-tail economy: Business model providing mass market access to smaller but large number of SMEs (ex. Google search ad)

**Installation Rate: Number of customers with the app installed/Total mobile internet users

[SKT‟s Business]

Domestic App. Installation Ranking(As of ‟13.07)

[Ad Market]

☞ Facebook‟s mobile ad sales contribution increased

from 14% of total revenues in 3Q12 to 41% in 2Q13

Advertise

r

106%

61%49% 40%

30%

0

10

20

30

40

'11 '12 '13E '14E '15E '16E

성장률(USD m)

Global Mobile Ad MarketTmap,

Smart Wallet, 11th Street

Btv, MyShop

T ad

NasMedia, MezzoMedia

etc.

SKP (SK M&C)

Source: Koreanclick(‟13.08)

SKT‟s various businesses and assets in the ad industry

value chain offer advertisers access to an array of

media services

Growth rate

Source: eMarketer (‟13.01)

7

Monetization strategy- Expand media business opportunities

Switch to digital broadcasting

Increase in pay-TV subscribers

Migration from CATV to IPTV

Change in media consumption pattern

One-way Interactive comm.

“Watch what I want”

Increasing m-media consumption

SKP

SKT

SKB

[Media Business Drivers] [SKT‟s Business Portfolio]

7.1

4.0+α

‟15E‟13E‟11

0.9

‟13.2Q

2.2

‟12

1.7

Tstore

hoppin

hoppin‟s VOD service

to be integrated with

Tstore in Dec. ‟13

Btv Subscribers

Media services not only generate monthly fees, home shopping commissions, ad sales, but also

influence service/content distribution. As such, SKT continues to evolve its media platforms to

differentiate and maximize its reach

* Reach: Number of users who used the service that month/Total mobile internet users

Source: Koreanclick,(‟13.08)Source: OVUM (‟13.04)

(m subs)

Seamless platform: Mobile to fixed line,

VOD to Real-time

Core-tech collaboration including new

set top box, encoding, and ad platform

Business collaboration including contents

sourcing (from global major distributors),

and ad services

SKB

SKT

SKP

0

10

20

30

'10 '11 '12 '13.1Q '13.2Q

IPTV 가입자

(m subs) Domestic Pay-TV Subscribers

Source: KCC and Companies (‟13.08)

17% 25% 34% 36% 39%

(USD bn) Market Size

‟11 6.1

‟17E 14.1

CAGR 15.8%

‟12.7 ‟13.1 ‟13.7

Reach 89.3% 92.8% 92.3%

Average Duration(min)

181 322 401

OTT VOD Global Market m-video Domestic Market

IPTV Subs

8

Monetization strategy- Increase presence in mobile commerce

[Global eCommerce Market] [SKT‟s Business]

Growth of mobile shopping is expanding eCommerce channels and is creating new business

opportunities. SKT‟s strengths in mCommerce and m-ad provide for significant growth

potential on a standalone and through synergy with other services

Source: Bank of America Merrill Lynch Global Research(‟13.01)

mCommerce Characteristics

Location based shopping

Location based mobile ad service connecting off-line

products and services with on-line consumers

Safe and easy payment system

Ability to quickly purchase desired product/service

Personalized shopping

Provide personalized services reflecting individual

customer‟s shopping history and preference

53

‟12.2Q ‟13.2Q

(KRW bn) 153 No. 1 m-shopping destination;

wide product line-up, friendly

payment UI, focused market

In 2Q13, contributed 12% to 11th

St. GMV, up from 5% in 1Q13

Co-marketing with OK Cashbag, T-membership, Hana SK

M-Card and other SKT services

Expect service synergy among 11th Street, Tstore, m-ad and

MyShop

Create exclusive mobile private brand

Develop new products with local business partners

To launch personalized shopping recommendation service

2%5%

9%14%

20%24%

0

500

1,000

1,500

'10 '11 '12 '13E '14E '15E

eCommerce

mCommerce

mCommerce 비중

(USD bn)

m-11th Street GMV

Leader in expanding mCommerce market

Maximize synergy with other services

Develop m-shopping UX

as % of eCommerce.

9

Monetization strategy- Seek global market opportunities

By transplanting SKT‟s proven competitive platforms and services, SKT, along with a strong

local partner, is expanding its reach to the global market

Developing a mobile content

ecosystem focusing on video,

education and games in cooperation

with local partners

Evaluating the market potential for

remote/personal medical equipment

and healthcare service markets

Launched mobile messenger service

targeting business professionals

Constructing a traffic information system

in cooperation with China Mobile and

China Telecom

Preparing an auto-care business platform

In Mar. ‟13, launched 11th Street in

Turkey through a joint venture

established with Dogus Group

Successfully positioned itself as one of

the favored eCommerce destinations

within 2 months of launch

In 1Q14, established a joint venture with

XL Axiata of Indonesia to pursue

eCommerce opportunities

[Global Business Strategy & Progress]

Monetize subscriber-base and build brand power

Localization

&

Partnership

North America

China

Other areas

10

SKT‟ competitive edge in new growth businesses

Subscriber

Base

Brand

Power

Product and service

synergy

Bargaining

Power

Core

Technology

Ranked as the # 1 brand by K-BPI for 13 consecutive years

Ranked #1 in NCSI‟s consumer satisfaction survey for 16

consecutive years

Won MWC‟s “Best of Best” tech prize in ‟13

Only company to pass National Intelligence

Service security standard (Lv.2~4)

“Best brand power in Korea”

T membership and OK Cashbag driving adoption of e-wallet

(Smart Wallet)

Quick and safe payment system for purchases on T store and

11th Street

Enhanced convenience with M-11th Street, Mobile Card

Launched new services based on big-data and cloud tech

“Products/services with significant synergy potential”

Largest fixed/wireless distribution channel

Growing number of partnerships with well-

established domestic and foreign companies (Kia

Motors, CJ, NHN, major Asian and US corporates)

27 millions of wireless subscribers

Korea‟s largest mobile platform user base;

T store - 21m, T map - 16m, Smart Wallet -

9m, 11th Street - 21m, hoppin - 4m

Large B2B customer segment

SKT has the critical resources and the foundation to build a strong business platform for its

growth businesses

[SKT‟s Edge]

“Marketing power”

“Strong, interactive subscriber base”

“State of the art tech in mobile, platform and solutions”

11

Growth engines

Upward momentum of new businesses to lead SKT‟s future growth

Revenue contribution from new businesses(Consolidated)

‟12.1Q ‟12.2Q ‟12.3Q ‟12.4Q ‟13.1Q ‟13.2Q

4.7%

5.7% 5.5%

6.7%

7.6%

9.2%

“SKT‟s Growth Momentum”

SpilloverGlobal

m-ad

Commerce

Media

B2B

Solution IPTV Healthcare Platform

“Transform to a ICT Company”

Build and strengthen non-telco businesses to drive

growth momentum

● ‟15: KRW 1.5tn rev. ● Global platform● ‟15: +7m subs

12

Contact Info.

IR Contacts Tel No. e-mail

Hong Kyu Park 82-2-6100-4509 hongkyupark@sk.com

Jeong Hwan (Jack) Choi 82-2-6100-7203 jack.choi@sk.com

Dong Seop Kim 82-2-6100-1464 sunson@sk.com

Jae Bum Park 82-2-6100-1660 jb.park@sk.com

Jung Hyun Kim 82-2-6100-1582 jane.kim@sk.com