“Barrier Free” refers to the movement to break down physical and institutional barriers to make society more inclusive for people with disabilities and other marginalized groups. SK Telecom (“SKT”), now transforming itself into a global AI business, is using its top-notch ICT and AI technologies to develop innovative barrier-free AI services with a variety of social enterprises. 1) Sullivan Services – Eyes for the visually impaired Sullivan Plus is an AI-powered visual assistant voice guidance app launched by Tuat in 2018. SKT has been working with Tuat on Sullivan Plus since 2021, to which it has since added voice AI “NUGU” and Vision AI. The addition of voice commands and improved facial recognition have been positively received by users. In 2022, SKT launched “Codename: Sullivan Plus,” which was an engaging digital campaign that invited customers to donate photos to help train its AI. Today, Sullivan Plus has become a must-have app for the visually impaired, with more than 300,000 downloads in over 200 countries. In response to customer demand for text recognition-related features, SKT and Tuat jointly developed an app that is specific to the business environment—Sullivan A helps users work with documents, from summarizing documents and finding words to recognizing business cards. All of Sullivan A’s features can be used conveniently through voice commands to “NUGU,” SKT’s voice AI. Sullivan Finder, the newest app, is designed to help the visually impaired get out and about. It offers three function categories: shopping, restaurants, and walking and safety, and like Sullivan A, can be used with voice interaction. SKT’s A.X Multimodal AI in Sullivan Finder has been trained on a billion images, enabling it to better describe images. SKT plans to double the amount of training to improve Sullivan Finder’s accuracy. 2) AI Developmental Disability Care Service – The warmest AI designed to protect people with developmental disabilities SKT’s AI Developmental Disability Care Service uses behavioral analytics technology to automatically record and analyze challenging behaviors of people with developmental disabilities, helping professionals to intervene when and where needed. As of the first quarter of 2024, SKT Vision AI Care has been used in five care facilities for adults with developmental disabilities in Seoul, Daejeon, and Daegu, with plans for expansion to Gyeonggi-do this year. In addition, a joint project with Seoul National University is in its third year to screen infants and toddlers with autism spectrum disorders. 3) Goyohan M – A means of transport that carries the dreams of people with hearing impairment SKT has been working with Coactus, the operator of Goyohan M since 2018, towards creating jobs for people with hearing impairment and promoting safe driving. SKT has added blinker notifications, dispatch pop-up notifications, and messaging features to its TMAP taxi app for the hearing impaired to make the service easier to use for both drivers and passengers, and has provided hearing-impaired drivers with a T-care smartwatch so that they can easily call 112 or relay their location in an emergency situation. In September 2023, SKT launched the voice AI “NUGU” for greater convenience. With this addition of NUGU, the UI was upgraded to allow passengers to easily access travel information or listen to music on the move. Goyohan M keeps about 180 hearing-impaired drivers employed in total as of the end of 2023, and will continue to improve its services to provide ever-more reliable services to the hearing-impaired and users of the service. Happiness AI Coding School - empowering youth with disabilities with ICT skills As part of its efforts to improve the ICT capabilities of youth with disabilities and bridge the information gap, SKT is running Happy AI Coding School with the National Institute of Special Education, Hana Financial Group, and SW Korea. Happy AI Coding School has a sustainable, age-appropriate coding curriculum consisting of 14 modules designed for youth with intellectual, developmental, visual and hearing disabilities, and special needs. Opened in 2019, Happy AI Coding School has seen the completion of 225 courses and trained 2,929 students so far. This year, the goal is to train about 1,800 students. SKT continually strives to improve quality of life for people with disabilities and bridge the gap between them and the rest of society through a variety of programs and AI technologies.

Editorial by CEO Ryu Young-sang March 29, 2024, marked the celebration of SKT’s 40th anniversary. Throughout the history, SKT has been a pioneering force in the ascent of Korea’s telecommunications industry, leading the country to forefront of the world's ICT powers. Pioneer DNA deeply embedded in SKT’s history From the first car phone service in Korea to the world's first CDMA commercialization in 1996, IMT-2000, 4G LTE-A and 5G services, our history has always been marked by world firsts. The pioneer DNA deeply ingrained within SKT also extends beyond mobile communications. We spearheaded mobile data services and the mobile content market, which includes music, film, and 3D game portals. Furthermore, we brought revolutionary changes to people’s lives by launching services like mobile navigation. Moreover, by acquiring SK Broadband in 2008, we secured leadership in both fixed and mobile technologies, providing a wide range of services tailored to customers' lifestyles. We also acquired SK hynix in 2012 and contributed in shaping the company into a global industry leader. More recently, we have been accelerating commercialization of Urban Air Mobility (UAM) service in Korea through a strategic partnership with Joby Aviation, a world-leading aviation company. SKT's new vision to become a global AI company The world is facing the rise of a new era with the emergence of AI. Companies leading the global economy and technology are scrambling to reorganize their business strategies around AI. Just as electricity transformed the 20th century, AI will change the way people live and work in the 21st century. We announced our vision to become a global AI company and set forth the AI Pyramid Strategy to move fast towards realizing this goal. This year, we aim to achieve tangible results by implementing the AI Pyramid Strategy. Leaping into the world of AI by leveraging AI capabilities and partnerships We continued to research and invest in AI since the early 2000s, launching diverse services that combine AI and mobile telecommunications. “A.,” a personalized AI assistant (PAA) service based on voice recognition technology, was launched in 2022 and has since been enhanced to offer features like call summary and real-time call interpretation. A. will continue to evolve into a personal assistant that utilizes AI to help address customers’ challenges and innovate their daily lives. Moreover, we have been strengthening our partnerships and collaborations with companies across the globe. We are creating a strong AI business momentum with Telco-specific large language models (LLMs) through cooperation with Anthropic and Open AI. Also, together with Deutsche Telekom, e&, Singtel, and Softbank, we launched the Global Telco AI Alliance (GTAA) to develop AI technologies and explore joint business opportunities. Through close collaboration with the GTAA members, we will transform our fixed and mobile networks into AI infrastructure, and launch global PAA services. In response to the explosive demand for AI data centers driven by the growth of AI, we are building powerful AI data center solution packages by combining the capabilities of SK Group companies including SK Hynix, SK Broadband and Sapeon. We are also cooperating with US server manufacturer Supermicro and global GPU cloud company Lambda Labs to secure AI cloud capabilities and develop global market opportunities. We are once again taking a path untraveled to become a global AI company. With our vast expertise, global partnerships, and the deeply-embedded pioneer DNA, we are confident that we will successfully navigate the uncharted waters of AI.

At SKT, we believe that people and culture form the heart of our success.We interviewed Jo, one of our global junior talents, who shared her inspiring journey as to why she chose to be a part of SKT, as well as her insights for aspiring applicants. 1.Can you tell us a bit about yourself? Hi, my name is Jo. I'm from Singapore. I first came to Korea in 2019 to pursue my master's degree in Korean Studies through the Korean Government Scholarship program. My interest in the Korean language and culture brought me to Korea. I would say that I am a rather active person as I enjoy different activities such as exercising, rock climbing in particular, dancing, cooking and more. 2. How would you describe your current team and role? I joined SKT early this year through the Global Junior Talent Recruit Program and I am currently working in the AI strategic Partnership Office. My team is amazing. We explore various business opportunities with communications companies and tech firms, and we work with partners from all over the world like Germany, the UAE, Singapore, etc. SKT is currently transforming into an AI company, and I'm very excited to be part of this journey, learning from my team mates. 3. How has your experience at SKT been so far? Personally, the best thing about working at SKT is definitely the people and culture. I'm given the opportunity to work with many talented and incredible individuals on different projects and learn from them as well. I was also able to easily adjust to the new environment thanks to the different programs our company has provided the new employees with. As a result, there is a very special sense of bond and friendship that was created among the new hires, and I am very thankful for that. We also have flexible working hours, and diverse employee welfare schemes such as Happy Fridays to support work-life balance. 4. How was your interview experience like? My interview experience at SKT was unforgettable. It was a full day long interview at the company's training facility outside of Seoul. We did both individual and group interviews. In order to effectively show my capabilities, I practiced talking about my experiences and skills in Korean, while preparing and rehearsing answers for possible interview questions to build up my confidence as well. Throughout the interview, I was able to freely express my opinion and I believe that this stems from the company’s culture of openness. 5. What advice do you have for aspiring SKT applicants? Since the entire interview process as well as communication in SKT is done in Korean, having good Korean language skills would be advantageous. Read up and learn about the company because it will help you with your application process. Most importantly, have confidence and go for it, because you will never know until you try!

It’s late. You’ve just arrived home from work, there’s nothing in the fridge and your stomach is letting you know it’s beyond hungry. Seeking some culinary inspiration, you turn to a trusted friend for some advice on what to eat… “A., I’m starving. What kind of food should I get?” “I remember you like cheese pizza – how about ordering some in?” “Great idea, A..” A. (pronounced ‘A dot’) is SKT’s AI service, and it can answer questions, handle specific tasks and converse freely about almost any topic you care to name – something that the service’s more than one million users can already attest to. Smarter, More Natural Interactions With the aim of delivering greater convenience to enrich customers’ lives, SKT sought to create something more than just an advanced chatbot. Equally adept at discussing both intellectual subjects and more mundane, everyday topics, A. could be described as an AI companion; one that can learn from interactions and relate to users in a way that feels distinctly human. Users can customize the character of A. to create a companion with a personality that works well with their own. They can also choose how they communicate with A. in any given interaction, as SKT’s service gives them the option to speak aloud, just as they would when hanging out with a friend, or hold a conversation over text message. To enable users to hold natural conversations with A., SKT developed its own Korean large language model (LLM) based on Generative Pre-trained Transformer 3 (GPT-3), which employs deep learning to generate human-like responses to questions and statements. In May 2022, A. became the first-ever GPT-3-based Korean LLM chatbot released in the B2C market.(The service is currently available in Korean.) A True AI Companion One of the major factors that sets A. apart from other AI services is that it genuinely gives users a sense that it understands and cares for them. A. can ask users how they’re feeling and even provide helpful advice to protect their well-being. For example, by checking weather data in real-time, it can recommend appropriate clothing to keep them comfortable, or ensure they leave the house prepared for any inclement weather set to arrive that day. A. has a long-term memory and can recall information from past conversations to offer a more personalized service. Over time, it can memorize important points and facts about the user’s tastes, preferences, hobbies, and occupation. This enables users to feel as if A. is an old friend that understands them better than others. Moreover, communication with A. is further enriched with the application of multimodal technology. When a user talks with A. on a specific topic, A. shows relevant images to make suggestions and enhance the quality of the conversation. SKT trained A. with a large dataset containing one billion images, each paired with Korean text. This is how, in the usage scene at the start of this story, A. was able to understand what it was being asked and respond by suggesting ‘cheese pizza’ while providing a photo for visual reference at the same time. SKT is set to provide even more convenience and value by seamlessly connecting A. to multiple services. In essence, A. will be an intelligent personal assistant as well as a trusted companion, helping users to do everything they need without having to open and navigate their way through a raft of different applications. While integration with third-party apps is on the way, A. already lets users take advantage of SKT’s various services, including music, content-streaming, English learning and navigation, saving them time and effort and streamlining the whole experience. Just the Beginning for A. Leveraging SKT’s in-depth understanding of the Korean market and consumers, A. will continue to grow and mature, accelerating and expanding its usefulness and humanness in a variety of ways. SKT recently made a KRW 15 billion equity investment in Scatter Lab, a Korean start-up known for its Lee Lu-da chatbot, and entered into strategic partnership with the firm to cooperate in diverse AI-related areas. Going forward, the company aims to collaborate with global AI tech companies and telcos to hasten the arrival of A. in overseas markets. With AI at the core of its business, SKT will keep driving innovation to create new value and benefits for its customers.

Over half of the world’s population currently lives in urban areas – a figure that is projected to increase to 68% by 2050. In urban landscapes with increasingly dense populations, issues such as traffic congestion and pollution can cause a myriad of problems for residents. City planners and local governments around the world have responded to this by creating smart cities. Korea has become a global pioneer in using tech solutions to improve urban infrastructure in smart cities. According to the Smart Cities Index Report 2022, an academic project led by Yonsei University and the University of Cambridge, Seoul topped a ranking of 31 cities in the Urban Intelligence category, which evaluates how cities are applying advanced technologies like big data, AI and IoT to solve urban problems. With aggressive efforts being made at a national level to improve city life, forward-thinking tech companies are taking an active role to make cities smarter and more sustainable. Taking Location Analysis to the Next Level with AI SKT is keen to put its advanced telecommunications data and AI solutions to good use in the smart city sector. To this end, SKT has developed the award-winning AI-powered location intelligence platform named 'LITMUS.' LITMUS was designed to resolve urban problems by analyzing via deep learning mobile subscribers’ de-identified location data. Using big data and AI-powered technology, it helps operators gain an understanding of the context of city-dwellers’ movements to analyze and predict their behavior patterns. While conventional location analysis solutions typically probe location and movement data, LITMUS works in a more sophisticated manner: It also analyzes “purposes” and “transportation means.” That allows solution operators to look not just ask “where?” but also examine notions of “how?” and even “why?” The potential of this powerful new form of location data analysis solution to improve city life has already been heralded. Indeed, its competitiveness was recognized by the GLOMO Awards, where it this year scooped the Best Mobile Innovation for Cities award. Putting LITMUS to the Test: Practical Applications SKT and its partners, such as local governments and city planners, have already found a range of practical applications for the technology in real-world settings. To reduce traffic congestion, LITMUS has been put into action to create Intelligent Transportation Systems (ITS), networks that can efficiently and accurately identify traffic volumes in real-time on key routes. A two-month pilot program conducted in conjunction with a local government body has yielded impressive results. It showed a 24% improvement in average traffic congestion during commuting hours. The pilot was conducted on Fridays, typically the day of the week when traffic in this area was the heaviest. Considering that the pilot program was conducted by using average traffic data of the past two months, the effect is expected to be greater when LITMUS operates on real-time data. The solution could also help reduce pollution. Tests show that if the waiting time at a single intersection could be reduced by an average of 5,166 minutes per day, carbon emissions could at the same intersection be slashed by about 78 tons per year. That is equivalent to the amount of carbon dioxide absorbed by 29,000 trees in a 12-month period. In addition, LITMUS helps prevent traffic accidents at intersections by linking city dwellers’ real-time location information to traffic light status data. 2,000 traffic lights and 700 intersections in Seoul are already applied with LITMUS to provide real-time information to drivers. Road maintenance and construction projects could also find powerful uses for LITMUS, with the solution being used in traffic impact assessment systems. By studying LITMUS data, planners can make smarter decisions about road closures, diversions and signaling well in advance of starting work. Public transport operators could use LITMUS to make real-time adjustments to routes or gauge dispatch intervals. Data like this could help them make cost-effective investments in public transport networks, rather than making educated guesses about the need to create new transport links. LITMUS is expected to serve as a vital tool for those creating the transport infrastructure of the future. For instance, Urban Air Mobility (UAM), a solution based on renewable energy-powered airborne vehicles, could provide relief for busy road networks. It can help realize an effective UAM service by estimating demand, and determining optimal routes and vertiport locations. In a recent analysis using LITMUS, SKT was able to analyze potential customers and pinpoint a number of optimal vertiport locations in busy parts of the Korean capital. Key to Sustainable Future of Cities LITMUS was created to serve as a key enabler of AI-powered green and smart city transformation. The fact that it is already finding diverse application scenarios speaks volumes about its future potential. With solutions like these, Korean tech pioneers and city planners will hope to continue demonstrating the transformative power of smart city technology. And that could bring safety, sustainability and improved air quality to the streets of the future.

Steam engines, elevators, telephones, light bulbs, automobiles, airplanes, TVs, X-rays, ice cream, electronic calculators, and the Eiffel Tower have one thing in common. All these innovative human inventions were first introduced to the world through World Expos. The World Expo, which was first held in London, England in 1851, has established itself as an exhibition that represents the development of human civilization as well as a global gathering of nations for finding solutions to pressing challenges facing the world. Throughout its 170-year history, it has not only accelerated the growth of host countries and cities, but also acted as a catalyst for industrial development. Held for six months every five years, the World Expo is one of the world's three mega international events along with the World Cup and the Olympics, and its economic effect is much higher than these events. Korea and expos At present, Korea is making all-out efforts to host the World Expo in Busan, its second largest city, in 2030. It began participating in the World Expo in 1893, and have already successfully hosted two Specialized Expos – i.e. smaller exhibitions that occur between two World Expos - in Daejeon and Yeosu in 1993 and 2012, respectively. If Korea wins the bid to host the 2030 World Expo, it will become the seventh country in the world to have hosted all three mega international events joining France, the United States, Canada, Japan, Germany, and Italy. The Busan World Expo is expected to have a huge impact on Korea's economy, society and culture. It is projected to generate economic effects worth KRW 61 trillion – i.e. KRW 43 trillion in production inducement and KRW 18 trillion in added value -and create 500,000 jobs. The 43 trillion won worth of production inducement is four times that generated by the 2002 World Cup and two times that of the 2018 PyeongChang Winter Olympics. Busan’s ambitions Located in the southeastern tip of Korea, Busan is the city that can best show the past, present and future of Korea. It embraced refugees during the Korean War, led industrialization from the ruins of the war, and became the transportation and logistics hub in Northeast Asia, leading Korea's rapid economic growth. With its beautiful beaches, rich cultural heritage, and open and inclusive culture, Busan is now attracting international events and visitors from all across the globe. Under the theme of “Transforming Our World, Navigating Toward a Better Future,” the World Expo in Busan aims to serve as a platform to develop ways to achieve sustainable living, harness advanced technologies for the good of humanity, and address inequality among and within nations. It will showcase future-leading technologies such as AI, 6G, smart airports and ports, and promote cooperation for finding effective solutions to pressing issues facing the world today and putting them to action. Banding together for the cause With the World Expo being promoted as a national project in Korea, the government and the business world are working as one team to win the bid. Korea’s top conglomerates, including SK, Samsung, Hyundai Motor Company, LG and Lotte, are extending full support by leveraging their experience, knowledge, and global networks. SK Group Chairman Chey Tae-won, who doubles as Chairman of the Korea Chamber of Commerce and Industry, is serving as the private sector chair of the World Expo2030BusanBid Committee. The SK Group has launched the 'World Expo Task Force (WE-TF)' to promote Busan's bid to host theWorld Expo2030. The ICT arm of SK Group, SKT, which is leading the future in the field of telecommunications and AI, is contributing to the cause by displaying Korea’s technological prowess and strong drive for innovation. In particular, together with Hanwha Systems, Korea Airports Corporation, and T Map Mobility, SKT will be demonstrating how Korea is realizing the future of mobility with urban air mobility (UAM) at diverse upcoming events and exhibitions - including on-site inspection by the Organization for International Expositions (BIE) and the World Climate Industry EXPO – to be held prior to the announcement of the bid winner in late 2023. By doing so, the companies will highlight Busan’s vision of solving environmental and social problems through the use of advanced technologies. Furthermore, if Busan hosts the 2030 World Expo, they plan to develop and operate special UAM routes connecting major areas of Busan to the World Expo site. Through this new environmentally-friendly means of mobility, Busan will provide visitors with an elevated level of experience and convenience, and lead the path towards a more sustainable future.

This year’s Consumer Electronics Show (CES) took place in Las Vegas, Nevada, on January 5-8. And after several pandemic-disrupted years, the tech industry’s premium event was back in earnest, and returned with a bang. Traditionally, the event has set the stage for the IT world’s year ahead. And CES 2023 was no different in this regard. But instead of focusing heavily on new products and headline-grabbing announcements, it was a single concept that took the limelight: sustainability. In recent months, the idea of reducing the tech world’s impact on the environment to alleviate environmental pressures has become paramount for leading companies. Showcasing sustainability A consensus has emerged between the private sector and the government sphere: Just talking about sustainability won’t cut it anymore. What is needed is concrete action in the form of a shift away from fossil fuels, greenhouse gas production and non-renewable forms of production. Prior to CES 2023, SKT had already made a number of pledges in this regard. The company announced its plans to reach net zero carbon emissions by 2050 and cut greenhouse gas emissions by nearly 50 percent (versus 2020 emissions) by 2030. This year, SKT operated a joint exhibition booth with other SK Group members, including SK Innovation, SK Hynix, SK E&S, SK Ecoplant, SK Biopharmaceuticals and SKC. The companies presented over 40 eco-friendly technologies and products that can bring them closer to attaining their group-wide target of reducing carbon emissions by about 200 million tons by 2030. The only way is up The goal of sustainability cannot be reached without achieving transformational changes in today’s transport and delivery. The old models that made use of fossil fuels and energy-guzzling machines need to be consigned to the past. While the advent of smart vehicles and electric cars is a promising start, the pressure is on firms to think even bigger. One example of a way to slash power usage in transport was on display at the SK booth at CES 2023. Named Urban Air Mobility (UAM), it is a solution that could not only transform the mobility sphere and reduce fossil fuel dependence, but also provide relief for busy road networks. CES 2023 attendees were able to take a sneak peek into the future of UAM vehicles through a VR trip. Next-generation transport will likely require next-generation processors to save energy and enhance efficiency at every step of the operating process. That is why UAM vehicles will be equipped with SAPEON, SKT’s self-developed AI chip. This power-saving AI processor not only has high-speed data computation capacities, but also provides a green boost: It uses 20% less power than GPUs, even while supporting 1.5 timesfaster deep learning computation functionality. And the next piece of the puzzle comes in the form of a new paradigm for power supply and management: SKT’s Virtual Power Plant (VPP). This system allows for integrated management of new and renewable energy generated by individuals and businesses with their own solar panels and wind turbines. The solution provides a platform that lets an operator manage these various sources as though they were in a single power plant – and could be used to help operate UAM on clean energy. Into tomorrow’s world This year’s CES taught tech observers much about the way firms will be approaching the next 12 months. But one key takeaway will surely resound with all attendees and outside observers: Innovative green technology is now our best hope of accelerating toward net zero goals. As the world has recently achieved a success story in recovering the ozone layer through concerted efforts from the global community, our progress towards sustainability goals will be accelerated when more and more businesses join the efforts to develop and offer environmentally-friendly technologies, products and services.

Ever since the dawn of the IT era, innovators have been trying to create truly immersive virtual worlds. In previous years, these worlds have been incomplete. They’ve lacked depth. But advances in 5G, blockchain, internet and virtual reality technology have changed all that. Science fiction writers’ dreams of the metaverse are starting to come true. Forward-looking firms and tech pioneers in Korea and elsewhere have already launched metaverse experiences. These are allowing individuals to enter rich digital universes. Corporations use the metaverse to cut costs, reduce carbon footprints and boost efficiency. The metaverse has let them cut down on business trips and in-person forums. According to GlobalData estimates, the metaverse industry will grow from USD 22.79 billion in 2021 to USD 996.42 billion in 2030. The metaverse is only getting started – but already has so much to offer everyone. Introducing ifland In June last year, SKT launched its metaverse platform, ifland. The platform has since evolved into a virtual space tailored to meet the virtual demands of all sorts of sectors: from academia to the music industry. Universities have used it to create virtual campuses to offer special events and lectures for their students, while musicians have used it to hold virtual concerts. Movie production firms have even used it to host film screenings. In the corporate world, companies have been using ifland to do everything from conducting media conferences to hosting job fairs and making virtual product launches. By October 2022, cumulative app downloads had almost reached the 13 million mark. With all this domestic experience under its belt, it was time for ifland to go global. ifland’s International Journey Begins In November, ifland launched in 49 countries and regions, with iOS and Android versions in English, Traditional Chinese, Simplified Chinese and Japanese. This sparked a flurry of activity – and exciting partnerships. SKT has already signed MOU agreements with NTT DOCOMO, the largest mobile operator in Japan, as well as the Middle Eastern telecoms heavyweight e& and the Singaporean giant Singtel. These deals will help SKT deepen its understanding of overseas markets and better meet the various needs and preferences of customers in a range of regions. Partnership discussions with other major telecoms providers are also underway. SKT has met the rising demand for metaverse fashion by teaming up with Birger Christensen, a Copenhagen-based fashion firm with over 150 years of history. Together, the companies have launched a series of digital skins for ifland avatars. ifland-based explorers will soon be able to explore traditional Middle Eastern costumes, thanks to the e& partnership. They will also be able to gather around and marvel at the iconic landmarks of countries like the UAE and Singapore, with virtual building now in progress. SKT is also leveraging the global popularity of K-pop to attract more users. It will provide a wide range of K-pop inspired content in ifland, which includes exciting weekly K-pop-themed events and auditions for would-be K-pop trainees. Students and teachers will benefit from a deal between Thailand’s Bansomdejchaopraya Rajabhat University and Korea’s Dong-ah Institute of Media and Arts. The two colleges are now co-creating an ifland-based “global metaverse campus.” This campus will bridge vast physical distances with seamless, IT-powered solutions. The Metaverse’s Ever-expanding Horizons Big businesses and IT visionaries are in agreement: The metaverse is here to stay. And while we are still in the very early days of this exciting new digital paradigm, the metaverse is no longer a buzzword. It is a bona fide tool of business and a platform for learning, entertainment, culture and social activity. SKT’s vision of the metaverse is as expansive as ifland itself. ifland has already proved a success in Korea. But the company now wants the rest of the world to enjoy the same variety of experiences. For the first time in human history, what was once an artistic pipe dream is set to become a life-enriching digital reality.

Artificial intelligence has emerged as a foundational technology that is profoundly transforming every aspect of our lives. It is not only enhancing human capacities and producing new efficiencies, but also helping resolve humanitarian and environmental challenges. As one of the first companies in Korea to jump into the world of AI, we have secured key technologies and capabilities in this field, trying out new and innovative ideas that can bring benefits to both our customers and the overall society. In collaboration with brilliant social startups, we are now focusing on developing and offering AI-powered services that can enhance the accessibility of people with disabilities. ■ Promoting social inclusion of people with visual impairment In Korea, 254,000 are registered as vision impaired and 92.4% of them are suffering from severe sight impairment resulting from diseases and accidents. In addition, 26.4% of the vision impaired are living alone, and only 46.6% are participating in economic activities. Sight impairment is acting as a big obstacle for people to become financially independent. By working together with a Korean social venture Tuat, we applied our voice AI technology to‘Sullivan Plus’ to further upgrade the visual assistance service/app for blind and low vision people. Sullivan Plus is the most popular AI-based visual assistance service in Korea. When a person with visual impairment takes a picture of an object, person, or landscape with a smartphone camera, AI recognizes the image on the screen and describes it via voice. It gives detailed descriptions such as “a 33-year-old man is smiling” or “a white puppy is sitting”, and also recognizes and reads the text marked on objects or documents. Sullivan Plus is empowering blind and low vision people to do much more by themselves in their daily lives. Since Sullivan Plus is based on deep learning, massive amounts of image data are required to improve the accuracy of the service. To accelerate the process of data acquisition, we recently launched a campaign, inviting people to upload their daily photos on social media with a designated hashtag. We are already witnessing an enthusiastic response from the public, and through their participation, Sullivan Plus will evolve into even a better, smarter service that enhances the quality of life for those living with visual impairment. ■ Assisting blind and low vision people at workplaces With Tuat, we also developed ‘Sullivan A’ to enhance the work efficiency of people with visual impairments. With Sullivan A, users no longer have to spend time reading the whole document as the app will instantly understand and summarize the document. They can also search for specific parts of the documents based on keywords, and even send emails and make phone calls by scanning business cards with their smartphones. By enhancing work productivity, Sullivan A is expected to help blind and low vision people to actively participate in economic activities. Kim Hyun-joo, a blind teacher at Daegu Kwangmyung School, said, “I’m delighted that Sullivan A is helping the visually impaired to work with greater convenience. Currently, there are not many visually impaired people working in office jobs, but I believe that Sullivan A will create more opportunities for them.” Recognized for improving the accessibility of blind and low vision people, Sullivan A received CES 2023 Innovation Awards.

Editorial by CEO Ryu Young-sang Creating a solid path for growth When I became CEO of SKT, my first priority was to create a more solid path for the company following the horizontal spin-off of SK Square. To this end, we redefined our business centered around five business groups - i.e. Fixed and Mobile Telecommunications, Media, Enterprise, AIVERSE (AI + Universe), and Connected Intelligence - to accelerate our growth and innovations. And our strong commitment began generating tangible results despite the uncertainties in the global economy. We are maintaining solid growth and profitability in our Fixed and Mobile Telecommunications Business with the number of 5G subscribers exceeding 50% of our total mobile subscriber base. We are also aggressively expanding the Enterprise Business, which posted a two-digit growth for two straight quarters. Launched last year, our subscription service ‘T Universe’ and metaverse service ‘Ifland’ are gaining popularity in the market. At present, ‘T Universe’ has around 1.3 million monthly active users and Ifland reached 8.7 million cumulative downloads. Our Media Business is showing remarkable growth, posting revenue of KRW 382.1 billion in the second quarter of this year. We are also developing future-leading technologies that can benefit the society. We are focusing on the Connected Intelligence Business, which includes advanced AI robotics and urban air mobility, to take customer experience and convenience to the next level. Reinforcing efforts to increase corporate value A year has passed since I became CEO of SKT and now I have another mission to accomplish. As I believe that our solid business performance is not yet fully reflected in our stock prices, we will be making redoubled efforts to enhance our corporate value. We will further solidify our market leadership by expanding our Fixed and Mobile Telecommunications Business and developing new business models. Also, with our strong foundation in the telecommunications business, we are well positioned to reap fruitful results in subscription services in the near future. Constant efforts will also be made to keep our Media and Enterprise Business on the growth track to double their revenues through aggressive investment and creative ideas. To date, we have implemented a series of actions aimed at increasing shareholder value. For instance, we have canceled treasury stocks worth around KRW 2 trillion, set a stable quarterly dividend policy, conducted a five-to-one stock split, and held online shareholder meetings. We will continue to strengthen shareholder-friendly management and respond proactively to the demands of our customers and the market. Redefining businesses with AI Over the past five years, we have diversified our business by venturing into new areas. Now we are preparing for the next decade by creating a new wave of innovations through AI transformation. It has been years since we began concentrating our efforts on developing and securing AI competencies and we are moving closer to generating tangible results. We are actively applying AI to our core businesses including Fixed and Mobile Telecommunications and Media Business, while developing diverse business models that can drive new growth. In May, we opened the beta version of ‘A.,’ a character-based virtual assistant service built on a massive AI language model (GPT-3). We expect ‘A.’ to constantly evolve and become our key service over time. At the same time, we will actively promote investments and acquisitions to create synergies in AI and secure growth momentum. By redefining all our businesses with AI, we will be writing a whole new chapter in our history, creating greater value for all stakeholders.