(Seoul, 17 December 2007) - SK Telecom (NYSE:SKM) announced today that the company has applied for an approval from the Ministry of Information and Communication (MIC) on acquiring majority ownership of Hanaro Telecom. As Hanaro Telecom is a common carrier which serves the general public, a government approval is required for business.

Under the Telecommunications Business Act, any organization which takes over more than 15% stake of a common carrier, or becomes the largest shareholder of a common carrier, should receive approval from the Ministry of Information and Communication (MIC). On December 1, SK Telecom signed a conditional agreement to purchase 38.89% of Hanaro Telecom stake (equivalent of 91,406,249 shares) at KRW 11,900 per share.

Along with the application, the company also filed with the Korean Broadcasting Commission to change its status to become the majority investor of Hanaro’s data broadcasting channel business (T-commerce). SK Telecom sent an application to the commission to approve the change, which will make SK Telecom the largest investor.

Shin Bae Kim, CEO of SK Telecom said, "The acquisition will promote competition through a wider range of new services and revitalize the currently sluggish telecommunications market, ultimately delivering greater customer convenience and benefits. We expect the government approval process to be completed smoothly."