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    Blue Tech Wave Media
    Home » SK Telecom sees Q1 AI growth
    SK Telecom
    SK Telecom
    IT Infrastructure

    SK Telecom sees Q1 AI growth

    By Rita HuMay 13, 2025No Comments2 Mins Read
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    • AI revenue rose, but mobile outlook weak
    • Data breach caused major subscriber loss

    What happened: SK Telecom reports mixed Q1 2025 performance

    SK Telecom posted steady revenue for Q1 2025, with strong growth in artificial intelligence-related businesses. AI Data Centre (AIDC) revenue increased 11.1% to KRW102 billion ($71.8 million). The AI Transformation (AIX) unit, which offers cloud and AI services, grew 27.2% to KRW45.2 billion. Its AI assistant, AI-Dot, reached 9 million users.

    However, telecom operations still make up most of the company’s business. Total revenue remained flat at KRW4.5 trillion. Its pay TV and fixed-line businesses brought in KRW478 billion and KRW289 billion, respectively. The mobile segment generated KRW2.7 trillion, accounting for nearly 60% of total revenue, with 34.5 million subscribers overall. Of these, 5G users rose 8.2% to 17.2 million.

    Yet, SK Telecom’s recent cyberattack has triggered customer loss. CEO Ryu Young-sang confirmed a loss of 250,000 mobile subscribers since the breach. He expects this number could rise to 2.5 million.

    Also read: SK apologises for data breach at SK Telecom
    Also read: SK Telecom offers free SIM replacements after data breach

    Why it’s important

    The report shows a clear divide between SKT’s promising AI development and the troubled mobile division. While AI revenue surpassed KRW147 billion in Q1, it only made up around 3% of total revenue. Mobile services, still central to SKT, face pressure due to the cyberattack. Nearly 250,000 users have already left, and losses may rise further.

    To manage this, SKT is offering SIM replacement and a new “SIM Reset” solution. It updates authentication data without removing stored content. But SKT paused onboarding of new users during this recovery. This action means there will be no new mobile subscribers until SIM services stabilise.

    The breach also threatens SKT’s public trust. It is considered the largest data breach in Korean telecom history. CFO Kim Yang-seob said SKT will reassess operations to improve customer protection. The impact of the breach will likely affect future results, particularly in Q2 2025.

    AI cyberattack mobile subscribers Q1 results SIM Reset SK Telecom SKT South Korea
    Rita Hu

    Rita is an community engagement specialist at BTW Media, having studied Global Fashion Management at University of Leeds. Contact her at r.hu@btw.media.

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