SK Communications: Introduction to company and servicesSeptember 2009

I. Organization Overview

II. Service Overview

III. Strategic Direction

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Internet Company, SK Communications Merged with Empas, a KOSDAQ listed company, as of Nov. 2007 SK Telecom, the Major shareholder holds 64.8% of its shares 1,025 employees as of July, 2009

NateOn, Instant Messenger

• Mail, SMS, MMS• Streaming Music• NateOn Phone (Internet Phone)• Mini Bank (Messenger Banking) • StockOn (Stock information, Stock

trading)• Other Communications (SMS talk,

TalkOn, Gifticon)

Nate, Internet Portal

• Integrated wired &wireless service• Mobile phone decoration (Ring tone, Ring-back tone, Video

lettering)• Search (Multimedia, ‘Nate knowledge’, Semantic)• News, Mail• Pann (Bulletin Board)• Blog (Egloos), Club, Game

Cyworld, SNS

• Mini Homepage• Gift Shop (Digital item shop)• Cyworld Music • Cyworld Blog, Club, Gwangjang• Minilife (3D SNS)• Mobile Cyworld• Global Cyworld

China/Japan/USA/Taiwan/Vietnam

I. Organization Overview

I. Organization Overview

II. Service Overview

III. Strategic Direction

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Nate

Nate, a portal service, efficiently provides various quality entertainment contents with its own search technologies.

II. Service Overview

Innovative search technology Providing innovative ways to search multimedia files

Image searchby color, size, object

Video search by duration, source

Fortune telling

Comics / Novel

E-Commerce

Mobile Contents

• Registered Users: 25 million• Unique Visitors: 24.5 million

* Source: Company (Aug 2009), KoreanClick (July 2009)

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Cyworld

Cyworld, a social networking service, provides users with the value of self-expression, relationship and participation based on the principle of people-focused service.

II. Service Overview

PeopleRelationshipsSocial Networking

ParticipationPersonal Media

Various ways to help the disadvantaged, including donation & volunteer programs

Volunteer Programs in Cyworld

Strengthen your friendships and express yourself with gift items

Gift Shop

Various tools to help build and maintain friendshipsMake Friends

Where you are the main character of a story built around yourself

Minihompy

My Minihompy Friend’s Minihompy

Club

Digital Item Gift

Connectivity

• Registered Users: 24 million• Unique Visitors: 23.4 million• Coverage among 20s: 90%

* Source: Company (Aug 2009), KoreanClick (July 2009)

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NateOn

NateOn has established a firm leading position in IM market of Korea staying well ahead of MSN messenger.

II. Service Overview

Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09

1. Free SMS Service

2. Minihompy Integration

“March 2005”

16.2 million

3.5 million

* Source: KoreanClick (Jan, 2009)

Cyworld Music Player

Stock Information

• Accumulated Number of Users: 28.9 million• Unique Users: 16 million (5x MSN users)• Reach: 49.18%

Minihompy & CyworldIntegration

1. NateOn provides free SMS up to 100 per month for SK Telecom subscribers and 10 per month for others2. Users are instantly notified of updates to their own and NateOn friends’ Minihompies on NateOn

Gifticon

* Source: Company (Aug 2009), KoreanClick (July 2009)

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Other Services

SK Communications operates other leading services in their own categories includingblogging and e-learning.

II. Service Overview

• Egloos has differentiated itself from other blog services as a place that appeals to the most distinctive bloggers who produce higher quality contents with expert-level knowledge.

E-LearningBlog

•Etoos offers innovative e-learning content for university preparation market

• Spicus, a leading player in B2C online English education market, provides a variety of education contents and courses.

I. Organization Overview

II. Service Overview

III. Strategic Direction

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Considering NATE’s brand power as a portal and expansion possibility to be a successful wire/wireless service, SK Communications decided to foster NATE as a competitive portal site by concentrating internal capabilities

Directions of NATE RevampDirections of NATE Revamp

Necessary to offer differentiated service value to basic services such as search, mail, and news

- Create more values on portal’s basic services by maximizing qualities of SK Communications’ service platforms.

Necessary to secure new services that will induce users visits - Open platforms and develop differentiated services in which 3rd party

content providers and technology developers can grow - Utilize SNS assets such as Cyworld’s Inch’ons and NateOn’s Birdies and

develop new values - Introduce innovative new services combining NATE, Cyworld, and

NateOn’s core values

Strengthening

NATE Portal Power

Differentiate Search, Mail, News services1

Introduce NATE Connect & App. Store following open strategy2

III. Strategic DirectionRevamp Nate

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Strategic Actions

Utilizing company's core assets: SK communications will execute 4 strategic actions for differentiations.

III. Strategic Direction

Open PlatformStructure

Open PlatformStructure

Trustworthy & Clean Culture

Trustworthy & Clean Culture

Innovative Search

Innovative Search

Convergence Expansion

Convergence Expansion

Search

4 Strategic Actions

Enhanced Portal1111

2222

3333

4444

SNS

Commuication

NewsOpen

Market

LifeContents

Core Assets

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Open Platform Structure III. Strategic Direction

NATEconnectNATEconnect AppStoreAppStore

Expand application of Nate ID & Billing System

Open APIAttract external contents, notification from external

services

Application (Apps)Applications developed by 3rd party developers

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3NATE ID1

Reposition NATE/CYWORLD with innovative Open Social Platform technologyfor providing new user experiences on NATE/CYWORLD

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Scheduled to launch on September 30, AppStore is an open market application platform on which (1) SK Communications shares Apps API, (2) developers provide Apps, and (3) users selectively add and use Apps

Open Platform Structure III. Strategic Direction

API for Apps

development

Develop & provide Apps

Select & use Apps

Share Apps with 1-chons on Minihompy

Distribution of Apps on NATE AppStore

Developers

SK Comms

Users

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With AppStore, developers will have an access to users of websites adopting OpenSocial and leverage Dotori payment system and distribution platform provided by SK Communications

Open Platform Structure III. Strategic Direction

Dotori payment API

• AppStore is adopting OpenSocial API, a common API

for social applications across multiple websites• Developers can easily adapt their applications for

other major services adopting OpenSocial

• Activity feeds will be distributed through SK Comms’

multiple platform including NateOn IM• Cyworld will provide Dotori payment API to

developers who want to sell digital items in their Apps

Distribution through NateOn

SK Comms. BenefitsOpenSocial Benefits

Thank you !

If you have any questions, please contact• PR related: Sam Myung snmyung2180@skcomms.co.kr • AppStore related: Dyne Lee dynelee@skcomms.co.kr