SK Telecom (NYSE: SKM, “SKT”) announced on May 28th that it generated a robust KRW 2.795 trillion in social value (SV) for 2023, showcasing a noteworthy increase of 12.1% (equivalent to KRW 302.2 billion) compared to the previous year. 

SKT’s notable growth in SV was largely attributed to various initiatives. These include enhancing services to prevent voice phishing damage, expanding the use of AI-based care services like AI speakers or AI calls for the elderly or isolated households, and a growth in users of the ‘Red Connect’ smart blood donation app. 

Since 2018, SKT has been quantifying the value created by its comprehensive business management activities, encompassing product and service development, fair operation, personnel management, collaboration with business partners, and social contribution activities. 

In 2023, SKT saw a 5.6% (or KRW 108.5 billion) year-on-year (YoY) increase in SV from ‘Indirect Economic Contributions,’ such as employment, dividends and tax contributions, amounting to KRW 2.036 trillion. On the other hand, SV in ‘Environmental Performance,’ including environmental processes, products and services, decreased by 6.2% (or KRW 6.9 billion) to KRW -118.0 billion. Meanwhile, SV in ‘Social Performance,’ covering products and services, labor, win-win growth and social contributions, surged by 29.7% (or KRW 200.6 billion) to KRW 876.7 billion. 

Thanks to solid business performance, the ‘Indirect Economic Contribution’ SV has exceeded KRW 2 trillion for the first time since the company began measuring SV output. 

Even amid continuous infrastructure investments to meet market demand, SKT’s ‘Environmental Performance’ successfully minimized the increase in greenhouse gas (GHS) emissions through energy efficiency measures and the utilization of renewable energy. The company has been making efforts to enhance its environmental process performance through measures including the integration and upgrade of 3G and LTE network equipment via Single Radio Access Network (Single RAN), AI-based network planning, and implementation of energy-efficient cooling and low-power design. 

‘Social Performance’ saw the most significant YoY growth in 2023. This growth was primarily attributable to AI and ICT products and services that contributed to solving social issues by preventing crimes, providing care for the socially vulnerable populations and building a social safety net. 

In terms of crime prevention, the performance of the new feature that blocks fake roaming numbers has been newly reflected in the SV measurement. The feature blocks international roaming calls that are made using a manipulated phone number to make it look like it came from a trusted caller. Along with existing voice spam blocking and call interception blocking, this feature helps prevent customers from falling victim to voice phishing scams. 

In addition, SV performance in the area of care for the socially vulnerable continued to grow. Since April 2019, ‘AI Care,’ a senior care service that utilizes an AI speaker, has been serving approximately 20,000 households in 110 local governments and institutions nationwide. As of April 2024, the ‘Emergency SOS’ feature, launched in cooperation with the National Fire Agency, has rescued more than 906 seniors living alone. 

Furthermore, the AI Call service, an AI-powered automated check-in call service, is currently monitoring the well-being of 150,000 seniors living alone and those at risk of isolation and depression in Korea. This year, through the establishment of an ESG Large Language Model (LLM), SKT plans to offer an AI Call service that allows for more flexible and friendly interactions with users. 

Moreover, the ‘Red Connect’ app, a joint effort by SKT and the Korean Red Cross, provides health management services and a blood donation inquiry feature, significantly contributing to the rise in repeat donations from blood donors. Since its inception in 2019, user numbers have steadily climbed, with over 210,000 blood donors utilizing the Red Connect app to participate in blood donation as of 2023.