• Making accelerated moves to become an AI company, SKT achieved greater results in social value compared to the previous year thanks to innovative products and services powered by AI and ICT

• In year 2022, SKT created social value worth KRW 2.493 trillion, up 18.4% compared to the previous year, mainly driven by SV growth in ‘Social Performance’

• SKT has been making meaningful changes to its work processes and corporate culture since SV measurements began in 2018.

SK Telecom (NYSE:SKM, hereinafter referred to as “SKT”) announced that that it generated a total of KRW 2.493 trillion worth of social value (SV) in 2022, representing an 18.4% (or KRW 386.5 billion) increase compared to 2021.

SKT’s SV output growth was mainly driven by diverse efforts targeted at tackling social problems and strengthening social safety net, including the provision of AI Care and AI Call, voice phishing prevention system and earthquake detection sensor network.

In year 2022, SKT’s SV output in ‘Indirect Economic Contributions’ edged up 0.3% (or KRW 5.7 billion) year-on-year (YoY) to KRW 1.928 trillion; SV in ‘Environmental Performance’ decreased by 2.7% (or KRW 2.9 billion) to post KRW 111.1 billion worth of losses; and SV in ‘Social Performance’ expanded by 131.3% (or KRW 383.8 billion) to KRW 676.1 billion.

* Indirect Economic Contributions: Employment, dividend, and tax payment
Environmental Performance: Environmental process and product/service
Social Performance: Product/service, labor, win-win growth, and social contribution

SKT’s SV output in ‘Indirect Economic Contributions’ remained similar to that of 2021 when the company achieved high SV performance backed by increased employment and strong business performance.

Even with continuous infrastructure investment such as 5G network expansion, the company’s SV output in ‘Environmental Performance’ managed to minimize negative effects by maintaining a similar level of greenhouse gas (GHG) emissions as the previous year through measures to enhance energy efficiency and the use of renewable energy.

SKT has been making continuous efforts to reduce GHG emissions by integrating network equipment, which accounts for most of greenhouse gas emissions, with Single RAN; developing and adopting high-efficiency telecommunication equipment; and controlling air conditioning and heating in office buildings.

SKT’s SV output in ‘Social Performance’ increased significantly by 131.3% compared to the previous year by delivering positive value to various stakeholders through ground-breaking services powered by AI and ICT.

In partnerships with local governments and senior care centers, SKT is currently providing ‘AI Care,’ a senior care service that utilizes its AI speaker, and ‘AI Call,’ an AI-based automated check-in call service, to over 50,000 people, a 15-fold increase since launching the services in 2019, and is thus contributing to enhancing the work efficiency of caregivers.

*As of May 2023, ‘AI Care’ is being offered to 17,300 seniors living alone and ‘AI Call’ is being used by 33,000 people.

AI Care is being highlighted as a social safety net for seniors living alone as the nation heads rapidly towards becoming a super-aged society. So far, through AI Care’s ‘Emergency SOS’ feature – which enables users to ask for immediate assistance by saying “Aria, help!” – over 500 seniors got help from 119 in emergency situations.

The company is also leading efforts to prevent voice phishing damages by blocking voice spams and voice phishing calls. The voice phishing filtering system blocks scam calls by using the list of the phone numbers reported to the National Police Agency, and SKT is the only mobile operator in Korea currently operating such a system. The system blocked 104,990 outgoing calls suspected of voice phishing over the past year.

Moreover, to improve earthquake forecasting, SKT deployed an earthquake detection sensor network by installing earthquake-detecting sensors at 7,600 locations across the country. It utilized its own infrastructure, including base stations, distribution networks, and office buildings, as well as infrastructure of public institutions like the National Fire Agency and Korea Post. This marks the world’s largest ultra-small earthquake detection sensor network using mobile network infrastructure by the number of sensors installed, and SKT is providing ultra-high-density acceleration observation data used for earthquake detection and early warning research to the Korea Meteorological Administration and university research institutes free of charge.

Five years of SV measurements bring changes to work process and corporate culture

SKT has been measuring SV creation performance for five years since 2018, and meaningful changes are taking place in terms of the company’s work and employee perception.

For instance, performance in SV creation is being reflected in KPI evaluations, and ESG factors have been integrated in the investment process. The company is also providing electronic receipts via MMS messages, and became the first Korean mobile carrier to introduce online dividend inquiry service to strengthen communication with shareholders and eco-friendly management.

SKT’s employees are thinking more about ESG. Recently, a suggestion made by an employee – through the in-house communication channel – to purchase cafeteria’s food products from ESG-conscious companies has been well received by other employees.

“With our experience and capabilities in ESG, we will work closely with diverse stakeholders such as the Korean government, local governments and businesses to create greater social value and bring positive influence to the society,” said Park Yong-joo, Vice President and Head of ESG Office at SKT.