AI appeared to offer a silver lining to SK Telecom, which otherwise reported weaker earnings for fiscal year 2025. As the South Korean telecom giant continues to recover from the impact of a cybersecurity incident, and softer operating performance, it was its AI infrastructure development business that thrived and showed strong growth.
Company revenue from AI data centers rose by 34.9 percent year on year (YoY) to KRW 519.9 billion (US$ 354 million), supported by higher utilization at facilities in Gasan and Yangju and the acquisition of a data center in Pangyo.
Among its most ambitious projects is the Ulsan data center, a joint project with Amazon Web Services. Construction began in September 2025 and is progressing, with another Seoul site planned for 2026. Additionally, SK Telecom advanced in January 2026 to Phase 2 of South Korea’s Sovereign AI Foundation Model project, positioning it for further government-led AI work.
Park Jong-seok, CFO, SK Telecom, said, “This year, SK Telecom will drive customer value innovation across all areas of our telecommunications and AI businesses, and make every effort to improve our financial performance.”
In a LinkedIn post, SK Telecom stated, “Our AI business continues to accelerate, with artificial intelligence data center (AIDC) revenue growing by approximately 35 percent year-on-year, alongside our advancement into Phase 2 of the Sovereign AI Foundation Model project, further strengthening our role in Korea’s national AI ecosystem.”
However, this growth in its AI endeavours could not save it from overall financial turbulence. According to a press release, the consolidated revenue fell 4.7 percent year on year to KRW 17.10 trillion (US$ 12 billion), while operating income dropped 41.1 percent to KRW 1.07 trillion (US$ 728 million). Net income declined 73.0 percent to KRW 375.1 billion (US$ 255 million). On a non-consolidated basis, revenue was KRW 12.05 trillion (US$ 8.2 million) and operating income KRW 811.8 billion (US$ 553 million).
Subscriber growth showed signs of stabilizing late in the year. As of end-2025, SK Telecom had 17.49 million 5G subscribers, up about 230,000 from the third quarter. Fixed-line subscribers, including broadband, returned to net growth in the fourth quarter, reversing declines seen after the cybersecurity incident.
The company plans to expand the use of AI across network operations, marketing and distribution in 2026 with plans to expand its data center solutions and submarine cable business to improve efficiency and customer experience, while using customer lifetime value models to tailor products and benefits.