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SECURITIES AND EXCHANGE COMMISSION


Washington, D.C. 20549





Form 20-F


ANNUAL REPORT PURSUANT TO


SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934





FOR THE FISCAL YEAR ENDED DECEMBER 31, 2004


COMMISSION FILE NUMBER 1-14418


SK Telecom Co., Ltd.


(Exact name of Registrant as specified in its charter)


SK TELECOM CO., LTD.


(Translation of Registrants name into English)


THE REPUBLIC OF KOREA


(Jurisdiction of incorporation or organization)


11, EULJIRO2-GA


JUNG-GU


SEOUL, KOREA


(Address of principal executive offices)


Securities registered or to be registered pursuant to
Section 12(b) of the Act


|                                                                                             |  |                                          
|-------------------------------------------------------------------------------------------- |  | -----------------------------------------
|Title of Each Class                                                                          |  | Name of Each Exchange on Which Registered
|                                                                                             |  |                                          
|AMERICAN DEPOSITARY SHARES,
    EACH REPRESENTING ONE-NINTH OF
    ONE SHARE OF COMMON STOCK |  | NEW YORK STOCK EXCHANGE, INC.            
|COMMON STOCK, PAR VALUE
    WON 500 PER SHARE                                                |  | NEW YORK STOCK EXCHANGE, INC.*           

Securities registered or to be registered pursuant to
Section 12(g) of the Act.


NONE


(Title of Class)


Securities for which there is a reporting obligation pursuant
to Section 15(d) of the Act.


NONE


(Title of Class)




82,276,711 SHARES OF COMMON STOCK, PAR VALUE WON 500 PER
SHARE




|      |  |     
|----- |  | ----
|þ Yes |  | o No



|          |  |          
|--------- |  | ---------
|o Item 17 |  | þ Item 18











---










TABLE OF CONTENTS


|                                                              |  |                                                                                  |     |      |     | 
|------------------------------------------------------------- |  | -------------------------------------------------------------------------------- | --- | ---- | --- | 
|                                                              |  |                                                                                  |     | Page |    
|                                                              |  |                                                                                  |     |      |    
|Item. 1                                                       |  | Identity of Directors, Senior Management
    and Advisers                        |     |      | 5   | 
|Item. 2                                                       |  | Offer Statistics and Expected Timetable                                          |     |      | 5   | 
|Item. 3                                                       |  | Key Information                                                                  |     |      | 5   | 
|Item. 4                                                       |  | Information on the Company                                                       |     |      | 24  | 
|Item. 5                                                       |  | Operating and Financial Review and
    Prospects                                 |     |      | 54  | 
|Item. 6                                                       |  | Directors, Senior Management and
    Employees                                   |     |      | 77  | 
|Item. 7                                                       |  | Major Shareholders and Related Party
    Transactions                            |     |      | 84  | 
|Item. 8                                                       |  | Financial Information                                                            |     |      | 89  | 
|Item. 9                                                       |  | The Offer and Listing                                                            |     |      | 94  | 
|Item. 10                                                      |  | Additional Information                                                           |     |      | 102 | 
|Item. 11                                                      |  | Quantitative and Qualitative Disclosures
    about Market Risk                   |     |      | 128 | 
|Item. 12                                                      |  | Description of Securities other than Equity
    Securities                       |     |      | 130 | 
|Item. 13                                                      |  | Defaults, Dividend Arrearage and
    Delinquencies                               |     |      | 130 | 
|Item. 14                                                      |  | Material Modifications to the Rights of
    Security Holders and Use of Proceeds |     |      | 130 | 
|Item. 15                                                      |  | Controls and Procedures                                                          |     |      | 130 | 
|Item. 16A                                                     |  | Audit Committee Financial Expert                                                 |     |      | 130 | 
|Item. 16B                                                     |  | Code of Ethics                                                                   |     |      | 131 | 
|Item. 16C                                                     |  | Principal Accountant Fees and Services                                           |     |      | 131 | 
|Item. 16D                                                     |  | Exemptions from the Listing Standards for
    Audit Committees                   |     |      | 132 | 
|Item. 16E                                                     |  | Purchases of Equity Securities by the
    Issuer and Affiliated Purchasers       |     |      | 132 | 
|Item. 17                                                      |  | Financial Statements                                                             |     |      | 133 | 
|Item. 18                                                      |  | Financial Statements                                                             |     |      | 133 | 
|INDEX TO FINANCIAL STATEMENTS                                 |  |                                                                                  | F-1 |     
|Item 19                                                       |  | Exhibits                                                                         |     |      | E-1 | 
|EX-1.1 ARTICLES OF INCORPORATION                             
|EX-4.2 ENFORCEMENT DECREE OF THE TELECOMMUNICATIONS BASIC ACT
|EX-4.4 ENFORCEMENT DECREE - TELECOMMUNICATIONS BUSINESS ACT  
|EX-4.8 KOREAN SECURITIES AND EXCHANGE ACT                    
|EX-11.1 CODE OF ETHICS AND INTERPRETATIONS                   
|EX-12.1 CERTIFICATION OF CEO                                 
|EX-12.2 CERTIFICATION OF CFO                                 
|EX-13.1 CERTIFICATION OF CEO AND CFO                         
|EX-13.2 CERTIFICATION OF CEO AND CFO                         
|EX-99.1 CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCT FIRM   



1



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OVERVIEW OF THE COMPANYS WIRELESS NETWORK
















CERTAIN DEFINED TERMS AND CONVENTIONS USED IN THIS REPORT






2



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SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS








| |   |                                                                                                                                                                                                                                                                                                                                                                                                                       
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | our ability to anticipate and respond to various competitive
    factors affecting the industry, including new services that may
    be introduced, changes in consumer preferences, economic
    conditions and discount pricing strategies by competitors;                                                                                                                                                          
|
| |  | our implementation of CDMA 1xEV/ DO technology and other
    technologies such as W-CDMA, which is commonly referred to as
    third generation, or 3G, wireless technology;                                                                                                                                                                                                                                          
|
| |  | our plans to spend approximately Won 1.6 trillion for
    capital expenditures in 2005 for a range of projects, including
    expansion and improvement of our wireless networks, investments
    in our Internet-related businesses and expansion of our W-CDMA
    network and our expected future capital expenditures on various
    initiatives;                                                                 
|
| |  | our efforts to make significant investments to build, develop
    and broaden our businesses, including developing and providing
    wireless data, multimedia, mobile commerce and Internet services;                                                                                                                                                                                                                
|
| |  | our ability to comply with governmental rules and regulations,
    including the MIC regulations related to telecommunications
    providers, rules related to our status as a
    market-dominating business entity under the Fair
    Trade Commission of Koreas Korean Monopoly Regulation and
    Fair Trade Act, or the FTA, and the effectiveness of steps we
    have taken to comply with such regulations;
|
| |  | our ability to manage effectively our bandwidth and to implement
    timely and efficiently new bandwidth-efficient technologies;                                                                                                                                                                                                                                                                                     
|
| |  | our expectations and estimates related to interconnection fees;
    tariffs charged by wireless operators; regulatory fees;
    operating costs and expenditures; working capital requirements;
    principal repayment                                                                                                                                                                                               

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| |   |                                                                                                                                                                                                                                   
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |   | obligations with respect to long-term borrowings, bonds and
    obligations under capital leases; and research and development
    expenditures and other financial estimates;                                                    
|
| |  | the effect of the number portability system that allows wireless
    subscribers to switch wireless service operators while retaining
    the same mobile phone number and the use of the common prefix
    identification system;
|
| |  | the success of our various joint ventures and investments in
    other telecommunication service providers; and                                                                                                                   
|
| |  | the telecommunications industry in Korea and other markets in
    which we do business and the effect economic, political or
    social conditions have on our number of subscribers, call
    volumes and results of operations. 



ENFORCEABILITY OF CIVIL LIABILITIES




4



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##### Table of Contents



PART I





Item. 1     Identity of
Directors, Senior Management and Advisers







Item. 2     Offer Statistics and
Expected Timetable







Item. 3     Key
Information


SELECTED FINANCIAL DATA






|                                                 |                     |                                                                                    |            |         |      |   |            |         |  |   |            |         |  |      |            |          |       |   |            |          |  |     |            |         | 
|------------------------------------------------ | ------------------- | ---------------------------------------------------------------------------------- | ---------- | ------- | ---- | - | ---------- | ------- |  | - | ---------- | ------- |  | ---- | ---------- | -------- | ----- | - | ---------- | -------- |  | --- | ---------- | ------- | 
|                                                 |                     | As of or for the Year Ended December 31,                                           |           
|                                                 |                     |                                                                                    |           
|                                                 |                     | 2000                                                                               |            |         | 2001 |   |            | 2002    |  |   | 2003       |         |  | 2004 |            |          | 2004* |  
|                                                 |                     |                                                                                    |            |         |      |   |            |         |  |   |            |         |  |      |            |          |       |  
|                                                 |                     | (In billions of won and millions of dollars, except per share and percentage data) |           
|INCOME STATEMENT DATA                            |                     |                                                                                    |            |         |      |   |            |         |  |   |            |         |  |      |            |          |       |   |            |          |  |     |            |        
|Korean GAAP:                                     |                     |                                                                                    |            |         |      |   |            |         |  |   |            |         |  |      |            |          |       |   |            |          |  |     |            |        
|Total Operating Revenue(1)                       |                     | W                                                                                  | 7,423.1    |         |      | W | 8,371.9    |         |  | W | 9,324.0    |         |  | W    | 10,272.1   |          |       | W | 10,570.6   |          |  | US$ | 10,212.2   |        
|                                                 | Cellular Service(1) |                                                                                    |            | 7,245.1 |      |   |            | 8.203.0 |  |   |            | 9,156.8 |  |      |            | 10,091.8 |       |   |            | 10,297.6 |  |     |            | 9,948.4 | 
|                                                 | Paging Service(2)   |                                                                                    |            | 57.7    |      |   |            | 8.8     |  |   |            |        |  |      |            |         |       |   |            |         |  |     |            |        | 
|                                                 | Other(3)            |                                                                                    |            | 120.3   |      |   |            | 160.1   |  |   |            | 167.2   |  |      |            | 180.3    |       |   |            | 273.0    |  |     |            | 263.8   | 
|Operating Expenses                               |                     |                                                                                    | 5,927.6    |         |      |   | 6,047.4    |         |  |   | 6,526.4    |         |  |      | 7,167.0    |          |       |   | 8,130.9    |          |  |     | 7,855.2    |        
|Operating Income                                 |                     |                                                                                    | 1,495.5    |         |      |   | 2,324.5    |         |  |   | 2,797.6    |         |  |      | 3,105.1    |          |       |   | 2,439.7    |          |  |     | 2,357.0    |        
|Income before Income Taxes and Minority Interest |                     |                                                                                    | 1,287.8    |         |      |   | 1,976.7    |         |  |   | 2,218.8    |         |  |      | 2,754.3    |          |       |   | 2,123.2    |          |  |     | 2,051.2    |        
|Income before Minority Interest                  |                     |                                                                                    | 920.5      |         |      |   | 1,126.4    |         |  |   | 1,520.3    |         |  |      | 1,965.3    |          |       |   | 1,493.4    |          |  |     | 1,442.8    |        
|Net Income                                       |                     |                                                                                    | 972.3      |         |      |   | 1,146.0    |         |  |   | 1,487.2    |         |  |      | 1,966.1    |          |       |   | 1,491.5    |          |  |     | 1,440.9    |        
|Income per Share of Common Stock(4)              |                     |                                                                                    | 11,146     |         |      |   | 13,242     |         |  |   | 17,647     |         |  |      | 26,187     |          |       |   | 20,261     |          |  |     | 19.57      |        
|Diluted Net Income per Share of Common Stock(4)  |                     |                                                                                    | 11,146     |         |      |   | 13,242     |         |  |   | 17,647     |         |  |      | 26,187     |          |       |   | 20,095     |          |  |     | 19.41      |        
|Dividends per Share of Common Stock(5)           |                     |                                                                                    | 540        |         |      |   | 690        |         |  |   | 1,800      |         |  |      | 5,500      |          |       |   | 10,300     |          |  |     | 9.95       |        
|Weighted Average Number of Shares                |                     |                                                                                    | 87,226,559 |         |      |   | 86,545,041 |         |  |   | 84,270,450 |         |  |      | 75,078,219 |          |       |   | 73,614,297 |          |  |     | 73,614,297 |        
|U.S. GAAP:                                       |                     |                                                                                    |            |         |      |   |            |         |  |   |            |         |  |      |            |          |       |   |            |          |  |     |            |        
|Net Income                                       |                     | W                                                                                  | 895.4      |         |      | W | 1,111.6    |         |  | W | 1,301.1    |         |  | W    | 2,062.7    |          |       | W | 1,553.1    |          |  | US$ | 1,500.4    |        
|Income per Share of Common Stock(4)              |                     |                                                                                    | 10,265     |         |      |   | 12,844     |         |  |   | 15,440     |         |  |      | 27,475     |          |       |   | 21,097     |          |  |     | 20.38      |        
|Diluted Net Income per Share of Common Stock(4)  |                     |                                                                                    | 10,265     |         |      |   | 12,844     |         |  |   | 15,439     |         |  |      | 27,475     |          |       |   | 20,921     |          |  |     | 20.21      |        
|Dividends per Share of Common Stock(5)           |                     |                                                                                    | 540        |         |      |   | 690        |         |  |   | 1,800      |         |  |      | 5,500      |          |       |   | 10,300     |          |  |     | 9.95       |        
|Weighted Average Number of Shares                |                     |                                                                                    | 87,226,559 |         |      |   | 86,545,041 |         |  |   | 84,270,450 |         |  |      | 75,078,219 |          |       |   | 73,614,297 |          |  |     | 73,614,297 |        

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|                                    |                  |                                                                                    |          |      |      |   |          |       |   |   |          |       |   |      |          |       |       |   |          |       |   |     |          |       |  
|----------------------------------- | ---------------- | ---------------------------------------------------------------------------------- | -------- | ---- | ---- | - | -------- | ----- | - | - | -------- | ----- | - | ---- | -------- | ----- | ----- | - | -------- | ----- | - | --- | -------- | ----- | -
|                                    |                  | As of or for the Year Ended December 31,                                           |         
|                                    |                  |                                                                                    |         
|                                    |                  | 2000                                                                               |          |      | 2001 |   |          | 2002  |   |   | 2003     |       |   | 2004 |          |       | 2004* |  
|                                    |                  |                                                                                    |          |      |      |   |          |       |   |   |          |       |   |      |          |       |       |  
|                                    |                  | (In billions of won and millions of dollars, except per share and percentage data) |         
|BALANCE SHEET DATA                  |                  |                                                                                    |          |      |      |   |          |       |   |   |          |       |   |      |          |       |       |   |          |       |   |     |          |      
|Korean GAAP:                        |                  |                                                                                    |          |      |      |   |          |       |   |   |          |       |   |      |          |       |       |   |          |       |   |     |          |      
|Working Capital (Deficiency)(6)     |                  | W                                                                                  | (374.6   | )    |      | W | 668.2    |       |   | W | (189.7   | )     |   | W    | (461.4   | )     |       | W | 1,323.8  |       |   | US$ | 1,278.9  |      
|Fixed Assets  Net                  |                  |                                                                                    | 4,543.2  |      |      |   | 4,174.7  |       |   |   | 4,569.4  |       |   |      | 4,641.5  |       |       |   | 4,703.9  |       |   |     | 4,544.4  |      
|Total Assets                        |                  |                                                                                    | 11,044.2 |      |      |   | 13,326.3 |       |   |   | 14,228.7 |       |   |      | 13,818.2 |       |       |   | 14,283.4 |       |   |     | 13,799.1 |      
|Long-term Liabilities(7)            |                  | W                                                                                  | 1,727.2  |      |      | W | 3,498.4  |       |   | W | 3,693.4  |       |   | W    | 3,193.5  |       |       | W | 4,010.7  |       |   | US$ | 3,874.7  |      
|Total Shareholders Equity          |                  |                                                                                    | 6,142.7  |      |      |   | 6,149.3  |       |   |   | 6,231.9  |       |   |      | 6,093.8  |       |       |   | 7,205.7  |       |   |     | 6,961.4  |      
|U.S. GAAP:                          |                  |                                                                                    |          |      |      |   |          |       |   |   |          |       |   |      |          |       |       |   |          |       |   |     |          |      
|Working Capital (Deficiency)        |                  |                                                                                    | (332.5   | )    |      |   | 729.6    |       |   |   | (108.2   | )     |   |      | (445.5   | )     |       |   | 1,311.3  |       |   |     | 1,266.8  |      
|Total Assets                        |                  |                                                                                    | 11,182.8 |      |      |   | 13,841.0 |       |   |   | 15,720.7 |       |   |      | 15,586.2 |       |       |   | 15,576.8 |       |   |     | 15,048.6 |      
|Total Shareholders Equity          |                  |                                                                                    | 6,117.9  |      |      |   | 5,820.1  |       |   |   | 6,356.2  |       |   |      | 7,014.7  |       |       |   | 8,237.0  |       |   |     | 7,957.7  |      
|OTHER FINANCIAL DATA                |                  |                                                                                    |          |      |      |   |          |       |   |   |          |       |   |      |          |       |       |   |          |       |   |     |          |      
|Korean GAAP:                        |                  |                                                                                    |          |      |      |   |          |       |   |   |          |       |   |      |          |       |       |   |          |       |   |     |          |      
|EBITDA(8)                           |                  | W                                                                                  | 2,941.7  |      |      | W | 3,932.4  |       |   | W | 3,954.1  |       |   | W    | 4,706.4  |       |       | W | 4,085.8  |       |   | US$ | 3,947.3  |      
|Capital Expenditures(9)             |                  |                                                                                    | 2,241.1  |      |      |   | 1,382.1  |       |   |   | 2,024.7  |       |   |      | 1,647.6  |       |       |   | 1,704.3  |       |   |     | 1,646.5  |      
|R&D Expenses(10)                    |                  |                                                                                    | 117.1    |      |      |   | 153.7    |       |   |   | 253.3    |       |   |      | 300.2    |       |       |   | 336.1    |       |   |     | 324.7    |      
|                                    | Internal R&D     |                                                                                    |          | 78.8 |      |   |          | 130.7 |   |   |          | 194.3 |   |      |          | 235.8 |       |   |          | 267.1 |   |     |          | 258.0 |  
|                                    | External R&D     |                                                                                    |          | 38.3 |      |   |          | 23.0  |   |   |          | 59.0  |   |      |          | 64.4  |       |   |          | 69.0  |   |     |          | 66.7  |  
|Depreciation and Amortization       |                  |                                                                                    | 1,456.4  |      |      |   | 1,759.7  |       |   |   | 1,543.3  |       |   |      | 1,646.3  |       |       |   | 1,741.6  |       |   |     | 1,682.5  |      
|Cash Flow from Operating Activities |                  |                                                                                    | 3,043.5  |      |      |   | 2,423.9  |       |   |   | 4,267.8  |       |   |      | 3,328.8  |       |       |   | 2,516.1  |       |   |     | 2,430.8  |      
|Cash Flow from Investing Activities |                  |                                                                                    | (4,667.8 | )    |      |   | (1,972.8 | )     |   |   | (3,063.4 | )     |   |      | (1,414.4 | )     |       |   | (1,469.5 | )     |   |     | (1,419.7 | )    
|Cash Flow from Financing Activities |                  |                                                                                    | 1,629.3  |      |      |   | 331.2    |       |   |   | (1,418.2 | )     |   |      | (2,261.0 | )     |       |   | (968.6   | )     |   |     | (935.8   | )    
|Margins (% of total sales):         |                  |                                                                                    |          |      |      |   |          |       |   |   |          |       |   |      |          |       |       |   |          |       |   |     |          |      
|                                    | EBITDA Margin(8) |                                                                                    |          | 39.6 | %    |   |          | 47.0  | % |   |          | 42.4  | % |      |          | 45.8  | %     |   |          | 38.7  | % |     |          | 38.7  | %
|                                    | Operating Margin |                                                                                    |          | 20.1 |      |   |          | 27.8  |   |   |          | 30.0  |   |      |          | 30.2  |       |   |          | 23.1  |   |     |          | 23.1  |  
|                                    | Net Margin       |                                                                                    |          | 13.1 |      |   |          | 13.7  |   |   |          | 15.9  |   |      |          | 19.1  |       |   |          | 14.1  |   |     |          | 14.1  |  
|U.S. GAAP:                          |                  |                                                                                    |          |      |      |   |          |       |   |   |          |       |   |      |          |       |       |   |          |       |   |     |          |      
|EBITDA(8)                           |                  |                                                                                    | 2,930.5  |      |      |   | 3,859.1  |       |   |   | 3,620.7  |       |   |      | 4,679.1  |       |       |   | 3,970.4  |       |   |     | 3,835.8  |      
|Capital Expenditures(9)             |                  |                                                                                    | 2,241.1  |      |      |   | 1,382.1  |       |   |   | 2,024.7  |       |   |      | 1,647.6  |       |       |   | 1,704.3  |       |   |     | 1,646.5  |      
|Cash Flow from Operating Activities |                  |                                                                                    | 3,043.5  |      |      |   | 2,423.8  |       |   |   | 3,708.9  |       |   |      | 3,281.3  |       |       |   | 2,985.9  |       |   |     | 2,884.7  |      
|Cash Flow from Investing Activities |                  |                                                                                    | (4,667.8 | )    |      |   | (1,972.8 | )     |   |   | (2,995.2 | )     |   |      | (1,422.5 | )     |       |   | (1,393.2 | )     |   |     | (1,346.0 | )    
|Cash Flow from Financing Activities |                  |                                                                                    | 1,629.3  |      |      |   | 331.2    |       |   |   | (927.5   | )     |   |      | (2,205.5 | )     |       |   | (1,514.8 | )     |   |     | (1,463.4 | )    

|                                                          |             |                                          |            |            |      |   |            |            |  |   |            |            |  |      |            |            |  |   |            |            | 
|--------------------------------------------------------- | ----------- | ---------------------------------------- | ---------- | ---------- | ---- | - | ---------- | ---------- |  | - | ---------- | ---------- |  | ---- | ---------- | ---------- |  | - | ---------- | ---------- | 
|                                                          |             | As of or for the Year Ended December 31, |           
|                                                          |             |                                          |           
|                                                          |             | 2000                                     |            |            | 2001 |   |            | 2002       |  |   | 2003       |            |  | 2004 |           
|                                                          |             |                                          |            |            |      |   |            |            |  |   |            |            |  |      |           
|SELECTED OPERATING DATA                                   |             |                                          |            |            |      |   |            |            |  |   |            |            |  |      |            |            |  |   |            |           
|Population of Korea (millions)(11)                        |             |                                          | 47.1       |            |      |   | 47.4       |            |  |   | 47.6       |            |  |      | 47.9       |            |  |   | 48.2       |           
|Our Wireless Penetration(12)                              |             |                                          | 30.7       | %          |      |   | 32.0       | %          |  |   | 36.1       | %          |  |      | 38.2       | %          |  |   | 39.0       | %         
|Number of Employees(13)                                   |             |                                          | 7,279      |            |      |   | 5,693      |            |  |   | 6,241      |            |  |      | 6,286      |            |  |   | 7,353      |           
|Total Sales per Employee (millions)                       |             | W                                        | 1,019.8    |            |      | W | 1,470.6    |            |  | W | 1,494.0    |            |  | W    | 1,634.1    |            |  | W | 1,437.6    |           
|Wireless Subscribers(14)                                  |             |                                          | 14,452,683 |            |      |   | 15,179,163 |            |  |   | 17,219,562 |            |  |      | 18,313,315 |            |  |   | 18,783,338 |           
|                                                          | Digital(14) |                                          |            | 14,452,683 |      |   |            | 15,179,163 |  |   |            | 17,219,562 |  |      |            | 18,313,315 |  |   |            | 18,783,338 | 
|                                                          | Analog(15)  |                                          |            |           |      |   |            |           |  |   |            |           |  |      |            |           |  |   |            |           | 
|Average Monthly Outgoing Voice Minutes per Subscriber(16) |             |                                          | 148        |            |      |   | 172        |            |  |   | 191        |            |  |      | 197        |            |  |   | 194        |           
|Average Monthly Revenue per Subscriber(17)                |             | W                                        | 32,906     |            |      | W | 36,400     |            |  | W | 38,383     |            |  | W    | 39,739     |            |  | W | 39,689     |           
|Average Monthly Churn Rate(18)                            |             |                                          | 2.8        | %          |      |   | 1.4        | %          |  |   | 1.4        | %          |  |      | 1.2        | %          |  |   | 1.7        | %         
|Digital Cell Sites(19)                                    |             |                                          | 7,008      |            |      |   | 6,056      |            |  |   | 7,384      |            |  |      | 8,309      |            |  |   | 9,458      |           






| |   |                                                                                                                                                            
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------
| | * | The conversion into US Dollars was made at the rate of
    Won 1,035.1 to US$1.00. See note 2(a) of the notes to
    our consolidated financial statements.

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| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (1) | Includes Won 494.0 billion for 2000, Won 702.4 billion
    for 2001, Won 534.0 billion for 2002, Won 612.0 billion for
    2003 and Won 649.8 billion for 2004 from the sale of
    digital handsets and Won 1,312.4 billion for 2000,
    Won 1,339.9 billion for 2001, Won 1,043.2 billion for
    2002, Won 1,017.1 billion for 2003 and Won 849.4 billion
    for 2004 of interconnection revenue (including interconnection
    revenue in respect of calls between mobile users starting in
    2000). Shinsegi was merged into us on January 13, 2002. See
    Information on the Company  Business
    overview  Interconnection.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|
| | (2) | In March 2001, we transferred our paging business to Real
    Telecom Co., Ltd. (formerly known as INTEC Telecom Co., Ltd.) in
    exchange for 9.9% of Real Telecoms newly issued shares and
    bonds with a principal amount of Won 9.5 billion that can
    be converted into an additional 7.8% interest in Real Telecom.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|
| | (3) | For more information about our other revenue, see
    Operating and Financial Review and Prospects and
    Information on the Company.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|
| | (4) | Income per share of common stock is calculated by dividing net
    income by the weighted average number of shares outstanding
    during the period, giving effect to the 10-for-1 stock split of
    our common shares which became effective on April 21, 2000
    and resulted in the par value of each share being reduced from
    Won 5,000 to Won 500.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|
| | (5) | Dividend per share has been adjusted to give effect to the
    10-for-1 stock split of our common shares which became effective
    on April 21, 2000. On January 1, 2002, we early
    adopted Statement of Korea Accounting Standards
    (SKAS) No. 6, Events Occurring after
    Balance Sheet Date. This statement requires that proposed
    cash dividends be reflected on the balance sheet when the
    appropriations are approved by shareholders which is similar to
    U.S. GAAP. In order to reflect this accounting change,
    prior years financial statements have been restated. See
    note 2(w) of the notes to our consolidated financial
    statements.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|
| | (6) | Working capital means current assets minus current liabilities.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|
| | (7) | Our monetary assets and liabilities denominated in foreign
    currencies are valued at the exchange rate of Won 1,260 to
    US$1.00 as of December 31, 2000, Won 1,326 to US$1.00
    as of December 31, 2001, Won 1,200 to US$1.00 as of
    December 31, 2002, Won 1,198 to US$1.00 as of
    December 31, 2003 and Won 1,044 to US$1.00 as of
    December 31, 2004, the rates of exchange permitted under
    Korean GAAP as of those dates. See note 2(s) of the notes
    to our consolidated financial statements.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|
| | (8) | EBITDA refers to income before interest income, interest
    expense, taxes, depreciation and amortization. EBITDA is
    commonly used in the telecommunications industry to analyze
    companies on the basis of operating performance, leverage and
    liquidity. Since the telecommunications business is a very
    capital intensive business, capital expenditures and level of
    debt and interest expenses may have a significant impact on net
    income for companies with similar operating results. Therefore,
    for a telecommunications company such as ourselves, we believe
    that EBITDA provides a useful reflection of our operating
    results. We use EBITDA as a measurement of operating performance
    because it assists us in comparing our performance on a
    consistent basis as it removes from our operating results the
    impact of our capital structure, which includes interest expense
    from our outstanding debt, and our asset base, which includes
    depreciation and amortization of our property and equipment.
    However, EBITDA should not be construed as an alternative to
    operating income or any other measure of performance determined
    in accordance with Korean GAAP or U.S. GAAP or as an
    indicator of our operating performance, liquidity or cash flows
    generated by operating, investing and financing activities.
    Other companies may define EBITDA differently than we do. EBITDA
    under U.S. GAAP is computed using interest income, interest
    expense, depreciation, amortization and income taxes under
    U.S. GAAP which may differ from Korean GAAP for these items.



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RECONCILIATION OF NET INCOME TO EBITDA UNDER US GAAP


|                     |                               |                                              |         |         |      |   |         |         |  |   |         |         |  |      |         |         |       |   |         |         |  |     |         |         | 
|-------------------- | ----------------------------- | -------------------------------------------- | ------- | ------- | ---- | - | ------- | ------- |  | - | ------- | ------- |  | ---- | ------- | ------- | ----- | - | ------- | ------- |  | --- | ------- | ------- | 
|                     |                               | As of or For the Year Ended December 31,     |        
|                     |                               |                                              |        
|                     |                               | 2000                                         |         |         | 2001 |   |         | 2002    |  |   | 2003    |         |  | 2004 |         |         | 2004* |  
|                     |                               |                                              |         |         |      |   |         |         |  |   |         |         |  |      |         |         |       |  
|                     |                               | (In billions of won and millions of dollars) |        
|Net Income           |                               | W                                            | 895.4   |         |      | W | 1,111.6 |         |  | W | 1,301.1 |         |  | W    | 2,062.7 |         |       | W | 1,553.1 |         |  | US$ | 1,500.4 |        
|ADD: Interest income |                               |                                              | (67.6   | )       |      |   | (101.8  | )       |  |   | (90.8   | )       |  |      | (93.9   | )       |       |   | (86.7   | )       |  |     | (83.8   | )      
|                     | Interest expense              |                                              |         | 215.1   |      |   |         | 274.4   |  |   |         | 396.6   |  |      |         | 387.1   |       |   |         | 291.0   |  |     |         | 281.2   | 
|                     | Taxes                         |                                              |         | 408.5   |      |   |         | 791.3   |  |   |         | 585.0   |  |      |         | 811.4   |       |   |         | 611.1   |  |     |         | 590.3   | 
|                     | Depreciation and Amortization |                                              |         | 1,479.1 |      |   |         | 1,783.6 |  |   |         | 1,428.8 |  |      |         | 1,511.7 |       |   |         | 1,601.9 |  |     |         | 1,547.6 | 
|                     |                               |                                              |         |         |      |   |         |         |  |   |         |         |  |      |         |         |       |  
|EBITDA               |                               | W                                            | 2,930.5 |         |      | W | 3,859.1 |         |  | W | 3,620.7 |         |  | W    | 4,679.0 |         |       | W | 3,970.4 |         |  | US$ | 3,835.7 |        
|                     |                               |                                              |         |         |      |   |         |         |  |   |         |         |  |      |         |         |       |  



RECONCILIATION OF NET INCOME TO EBITDA UNDER KOREAN GAAP


|                     |                               |                                              |         |         |      |   |         |         |  |   |         |         |  |      |         |         |       |   |         |         |  |     |         |         | 
|-------------------- | ----------------------------- | -------------------------------------------- | ------- | ------- | ---- | - | ------- | ------- |  | - | ------- | ------- |  | ---- | ------- | ------- | ----- | - | ------- | ------- |  | --- | ------- | ------- | 
|                     |                               | As of or For the Year Ended December 31,     |        
|                     |                               |                                              |        
|                     |                               | 2000                                         |         |         | 2001 |   |         | 2002    |  |   | 2003    |         |  | 2004 |         |         | 2004* |  
|                     |                               |                                              |         |         |      |   |         |         |  |   |         |         |  |      |         |         |       |  
|                     |                               | (In billions of won and millions of dollars) |        
|Net Income           |                               | W                                            | 972.3   |         |      | W | 1,146.0 |         |  | W | 1,487.2 |         |  | W    | 1,966.1 |         |       | W | 1,491.5 |         |  | US$ | 1,440.9 |        
|ADD: Interest income |                               |                                              | (67.6   | )       |      |   | (97.4   | )       |  |   | (86.0   | )       |  |      | (86.5   | )       |       |   | (80.5   | )       |  |     | (77.8   | )      
|                     | Interest expense              |                                              |         | 213.3   |      |   |         | 273.9   |  |   |         | 311.1   |  |      |         | 391.5   |       |   |         | 303.4   |  |     |         | 293.1   | 
|                     | Taxes                         |                                              |         | 367.3   |      |   |         | 850.3   |  |   |         | 698.5   |  |      |         | 789.0   |       |   |         | 629.8   |  |     |         | 608.5   | 
|                     | Depreciation and Amortization |                                              |         | 1,456.4 |      |   |         | 1,759.6 |  |   |         | 1,543.3 |  |      |         | 1,646.3 |       |   |         | 1,741.6 |  |     |         | 1,682.5 | 
|                     |                               |                                              |         |         |      |   |         |         |  |   |         |         |  |      |         |         |       |  
|EBITDA               |                               | W                                            | 2,941.7 |         |      | W | 3,932.4 |         |  | W | 3,954.1 |         |  | W    | 4,706.4 |         |       | W | 4,085.8 |         |  | US$ | 3,947.2 |        
|                     |                               |                                              |         |         |      |   |         |         |  |   |         |         |  |      |         |         |       |  

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| |     |                                                          
| | --- | ---------------------------------------------------------
| | (9) | Consists of investments in property, plant and equipment.



|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(10) | Includes donations to Korean research institutes and educational
    organizations. See Information on the Company 
    Research and Development.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|    
|(11) | Population estimates based on historical data published by the
    National Statistical Office of Korea.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|    
|(12) | Wireless penetration is determined by dividing subscribers by
    total estimated population, as of the end of the period.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|    
|(13) | Includes regular employees and temporary employees. See
    Information on the Company  Employees.
    Includes 1,687 and 1,332 Shinsegi employees as of
    December 31, 2000 and 2001, respectively.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|    
|(14) | Wireless subscribers include those subscribers who are
    temporarily deactivated, including (1) subscribers who
    voluntarily deactivate temporarily for a period of up to three
    months no more than twice a year and (2) subscribers with
    delinquent accounts who may be involuntarily deactivated up to
    two months before permanent deactivation, which we determine
    based on various factors, including prior payment history.
    Wireless subscribers also include 3,517,831 Shinsegi subscribers
    as of December 31, 2000 and 3,311,874 as of
    December 31, 2001. Shinsegi was merged into SK Telecom on
    January 13, 2002.                                                                                                                                                                                                                                                                         
|    
|(15) | We discontinued our analog service on December 31, 1999.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|    
|(16) | The average monthly outgoing voice minutes per subscriber is
    computed by dividing the total minutes of outgoing voice usage
    for the period by the monthly weighted average number of
    subscribers for the period and dividing the quotient by the
    number of months in the period. The monthly weighted average
    number of subscribers is the sum of the average number of
    subscribers for the month, calculated by taking the simple
    average number of subscribers at the beginning of the month and
    at the end of the month, divided by the number of months in the
    period. Shinsegis subscribers and outgoing voice minutes
    are included from April 1, 2000.                                                                                                                                                                                                                                  
|    
|(17) | The average monthly revenue per subscriber excludes
    interconnection revenue and is computed by dividing total
    initial connection fees, monthly access fees, usage charges for
    voice and data, international charges, value-added service fees;
    and interest on overdue accounts (net of telephone tax) for the
    period by the monthly weighted average number of subscribers for
    the period and dividing the quotient by the number of months in
    the period. Including interconnection revenue, consolidated
    average monthly revenue per subscriber was Won 43,958 for
    2002, Won 44,546 for 2003 and Won 43,542 for 2004.
    Shinsegis subscribers and revenue are included from
    April 1, 2000. For information about the average monthly
    revenue per subscriber of SK Telecom and Shinsegi on a
    stand-alone basis, see Operating and Financial Review and
    Prospects  Overview.
|    
|(18) | The average monthly churn rate for a period is the number
    calculated by dividing the sum of voluntary and involuntary
    deactivations during the period by the simple average of the
    number of subscribers at the beginning and end of the period and
    dividing the quotient by the number of months in the period.
    Churn includes subscribers who upgrade to CDMA lxRTT or CDMA
    1xEV/ DO-capable handsets by terminating their service and
    opening a new subscriber account.                                                                                                                                                                                                                                                                                                                                                                                                                                 
|    
|(19) | Includes 2,532 cell sites of Shinsegi as of December 31,
    2000 and 1,685 cell sites as of December 31, 2001.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        

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##### Table of Contents



EXCHANGE RATES




|                        |  |                   |       |  |         |  |       |      |  |  |       |  |  |  |       | 
|----------------------- |  | ----------------- | ----- |  | ------- |  | ----- | ---- |  |  | ----- |  |  |  | ----- | 
|                        |  | At End            |       |  | Average |  |       |      |  | 
|Year Ended December 31, |  | Of Period         |       |  | Rate(1) |  |       | High |  |  | Low   | 
|                        |  |                   |       |  |         |  |       |      |  |  |       | 
|                        |  | (Won per US$1.00) |      
|2000                    |  |                   | 1,267 |  |         |  | 1,140 |      |  |  | 1,267 |  |  |  | 1,106 | 
|2001                    |  |                   | 1,314 |  |         |  | 1,293 |      |  |  | 1,369 |  |  |  | 1,234 | 
|2002                    |  |                   | 1,186 |  |         |  | 1,250 |      |  |  | 1,332 |  |  |  | 1,161 | 
|2003                    |  |                   | 1,192 |  |         |  | 1,193 |      |  |  | 1,262 |  |  |  | 1,146 | 
|2004                    |  |                   | 1,035 |  |         |  | 1,145 |      |  |  | 1,195 |  |  |  | 1,035 | 

|                     |  |          |       |  |     |  |       | 
|-------------------- |  | -------- | ----- |  | --- |  | ----- | 
|Past Six Months      |  | High     |       |  | Low | 
|                     |  |          |       |  |     | 
|                     |  | (Won per |      
|                     |  | US$1.00) |      
|November 2004        |  |          | 1,119 |  |     |  | 1,046 | 
|December 2004        |  |          | 1,067 |  |     |  | 1,035 | 
|January 2005         |  |          | 1,058 |  |     |  | 1,024 | 
|February 2005        |  |          | 1,044 |  |     |  | 1,001 | 
|March 2005           |  |          | 1,024 |  |     |  | 998   | 
|April 2005           |  |          | 1,019 |  |     |  | 997   | 
|through May 25, 2005 |  |          | 1,009 |  |     |  | 997   | 






|    |                                                                                                                                                                                                                                                                                                                                   
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | The average rates for the annual periods were calculated based
    on the average noon buying rate on the last day of each month
    (or portion thereof) during the period. The average rate for the
    monthly periods were calculated based on the average noon buying
    rate of each day of the month (or portion thereof).



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RISK FACTORS






| |                                                                                                       
| | ------------------------------------------------------------------------------------------------------
| | Competition may reduce our market share and harm our
    results of operation and financial condition.











| |                                                                                                  
| | -------------------------------------------------------------------------------------------------
| | Significant technological advancements affecting the
    wireless industry may harm our business.



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| |                                                                                                                                                                                             
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | W-CDMA technology may require significant capital and
    other expenditures for implementation which we may not recoup
    and may be difficult to integrate with our other
    businesses.







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| |                                                                                                                                                                                                                                                                    
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Our business environment requires us to continually invest
    in the growth of our business, and as a result, we may make
    significant investments in new businesses and regions, including
    businesses and regions in which we have limited
    experience.





| |                                                                                                                                                                                                                                                                      
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Due to the existing high penetration rate of wireless
    services in Korea and the Korean governments prohibition
    on handset subsidies, we are unlikely to maintain our subscriber
    growth rate, which could adversely affect our results of
    operations.





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| |                                                                                                                                                                                                             
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Our business and results of operations may be adversely
    affected if we fail to acquire adequate spectrum or use
    efficiently our bandwidth to accommodate subscriber growth and
    subscriber usage.









| |                                                                                                                                 
| | --------------------------------------------------------------------------------------------------------------------------------
| | We may have to make further financing arrangements to meet
    our capital requirements and contractual payment
    obligations.





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| |                                                                                                                                             
| | --------------------------------------------------------------------------------------------------------------------------------------------
| | Termination or impairment of our relationship with a small
    number of key suppliers could adversely affect our results of
    operations.





| |                                                                                                                                                                                                                                                     
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Our businesses are subject to extensive government
    regulation and any change in government policy relating to the
    telecommunications industry could have a material adverse effect
    on our results of operations and financial condition.











15



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| |                                                                                                                                         
| | ----------------------------------------------------------------------------------------------------------------------------------------
| | We are subject to additional regulation as a result of our
    market position, which could harm our ability to compete
    effectively.





16



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| |                                                                                                                                                                            
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Financial difficulties and charges of financial statement
    irregularities at our affiliate, SK Networks (formerly
    SK Global), may cause disruptions in our business.



17



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| |                                                                                                                                                                                                                                            
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Concerns that radio frequency emissions may be linked to
    various health concerns could adversely affect the market prices
    of our ADSs and common stock and we could be subject to
    litigation relating to these health concerns.





| |                                                                                           
| | ------------------------------------------------------------------------------------------
| | Our businesses may be adversely affected by developments
    affecting the Korean economy.



18



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| |   |                                                                                                                                                                                                                                                                                  
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | financial problems relating to Korean conglomerates, or
    chaebols, or their suppliers, and their potential adverse impact
    on Koreas financial sector, including as a result of
    recent investigations relating to unlawful political
    contributions by chaebols;   
|
| |  | failure of restructuring of large troubled companies, including
    LG Card and other troubled credit card companies and financial
    institutions;                                                                                                                             
|
| |  | adverse changes or volatility in foreign currency reserve
    levels, commodity prices (including oil prices), exchange rates
    (including depreciation of the Dollar or Yen), interest rates
    and stock markets;                                                           
|
| |  | increased reliance on exports to service foreign currency debts,
    which could cause friction with Koreas trading partners;                                                                                                                                                   
|
| |  | adverse developments in the economies of countries such as the
    United States, China and Japan to which Korea exports, or in
    emerging market economies in Asia or elsewhere that could result
    in a loss of confidence in the Korean economy;                          
|
| |  | the continued emergence of China, to the extent its benefits
    (such as increased exports to China) are outweighed by its costs
    (such as competition in export markets or for foreign investment
    and the relocation of the manufacturing base from Korea to
    China);
|
| |  | social and labor unrest or declining consumer confidence or
    spending resulting from lay-offs, increasing unemployment and
    lower levels of income;                                                                                                                        
|
| |  | another widespread outbreak of severe acute respiratory
    syndrome, or SARS, or any similar contagion, in Asia and other
    parts of the world;                                                                                                                               

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| |   |                                                                                                                                                                                                                                  
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | another occurrence of natural disasters of large scale such as
    the earthquakes and tsunami that hit many parts of Southeast
    Asia and East Africa;                                                                        
|
| |  | a decrease in tax revenues and a substantial increase in the
    Korean governments expenditures for unemployment
    compensation and other social programs that, together, lead to
    an increased government budget deficit;
|
| |  | political uncertainty or increasing strife among or within
    political parties in Korea; and                                                                                                                                   
|
| |  | a deterioration in economic or diplomatic relations between
    Korea and its trading partners or allies, including such
    deterioration resulting from trade disputes or disagreements in
    foreign policy.                 





| |                                                                                                                                                                                                                           
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Depreciation of the value of the won against the dollar
    and other major foreign currencies may have a material adverse
    effect on our results of operations and on the prices of our
    common stock and the ADSs.





| |   |                                                                                                                                                                                                                                                                                            
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | an increase in the amount of Won required by us to make interest
    and principal payments on our foreign currency-denominated debt,
    which accounted for approximately 18.7% of our total
    consolidated long-term debt, including current portion, as of
    December 31, 2004; and
|
| |  | an increase, in Won terms, of the costs of equipment that we
    purchase from overseas sources which we pay for in Dollars or
    other foreign currencies.                                                                                                                               





| |   |                                                                                                                 
| | - | ----------------------------------------------------------------------------------------------------------------
| |  | dividends, which will be paid in Won to the ADR depositary and
    converted by the ADR depositary into Dollars;
|
| |  | the Dollar value of the proceeds that a holder will receive upon
    sale in Korea of the shares; and           
|
| |  | the secondary market price of the ADSs.                                                                         





| |                                                                                                                                
| | -------------------------------------------------------------------------------------------------------------------------------
| | Increased tensions with North Korea could have an adverse
    effect on us and the prices of our common stock and the
    ADSs.



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| |                                                                                                                                                      
| | -----------------------------------------------------------------------------------------------------------------------------------------------------
| | If SK Corporation causes us to breach the foreign
    ownership limitations on shares of our common stock, we may
    experience a change of control.







| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | If our convertible notes are converted by foreign holders
    and the conversion would cause a violation of the foreign
    ownership restrictions of the Telecommunications Business Law,
    or in certain other circumstances, we may have to sell common
    stock in order to settle the converting holders conversion
    rights in cash rather than by issuing common stock to them, and
    these sales might adversely affect the market price of our
    common stock or ADRs.



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| |                                                                                                                                                                                  
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Sales of SK Telecom shares by companies in the SK Group,
    POSCO and/or other large shareholders may adversely affect the
    prices of SK Telecoms common stock and the ADSs.







| |                                                                                                                                            
| | -------------------------------------------------------------------------------------------------------------------------------------------
| | Koreas new legislation allowing class action suits
    related to securities transactions may expose us to additional
    litigation risk.





| |                                                                                                                                                
| | -----------------------------------------------------------------------------------------------------------------------------------------------
| | If an investor surrenders his ADSs to withdraw the
    underlying shares, he may not be allowed to deposit the shares
    again to obtain ADSs.



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| |                                                                                                                                                          
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------
| | An investor in our ADSs may not be able to exercise
    preemptive rights for additional shares and may suffer dilution
    of his equity interest in us.





| |   |                                                                                                                                              
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------
| |  | a registration statement filed by us under the
    U.S. Securities Act of 1933, as amended, is in effect with
    respect to those shares; or
|
| |  | the offering and sale of those shares is exempt from, or is not
    subject to, the registration requirements of the
    U.S. Securities Act.





| |                                                                                                                                                                        
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Short selling of our ADSs by purchasers of securities
    convertible or exchangeable into our ADSs could materially
    adversely affect the market price of our ADSs.





| |                                                                                                                                                                                                                          
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | After the exchange of ADSs into the underlying common
    shares of the company, seller or purchasers of the underlying
    common shares may have to pay securities transaction tax upon
    the transfer of the shares.





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| |                                                                                                                                          
| | -----------------------------------------------------------------------------------------------------------------------------------------
| | We are generally subject to Korean corporate governance
    and disclosure standards, which may differ from those in other
    countries.






Item. 4     Information on the
Company


HISTORY AND DEVELOPMENT OF THE COMPANY


Introduction










24



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Our Business Strategy






| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Enhance the technical capabilities of our wireless networks
    to improve data transmission rates and service quality and to
    enable us to offer an increased range of services. We are
    expanding the geographic coverage and subscriber capacity of our
    existing CDMA 1xRTT network and are progressively upgrading this
    network to employ CDMA 1xEV/DO technology, capable of data
    transmission at speeds of up to 2.4 Mbps.
|
| |  | Offer a broad range of new and innovative wireless data and
    Internet services. Through our integrated wireless and
    on-line portal, NATE, we plan to continue expanding the range of
    our wireless data and Internet services with a view to
    increasing revenue from these services. Our strategy includes
    the introduction of sophisticated multimedia services (such as
    June, a premium wireless data service that        

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| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |   | provides streaming multimedia video content through our CDMA
    1xEV/DO technology), mobile commerce services (such as Moneta
    and Liquid Screen Small Payment Service, wireless credit and
    payment systems which allow subscribers to provide merchants
    with credit card information and payment authorization using
    chips embedded in their wireless handsets), mobile community
    portal services (such as Mobile Cyworld which allows subscribers
    to enjoy Cyworld, the wire-line community portal service,
    through their cellular phone) and mobile finance services (such
    as Nemo, a mobile payment solution which allows subscribers to
    transfer money from their accounts to the accounts of other Nemo
    subscribers by typing in the recipients wireless handset
    number) that can be accessed using handsets and other devices
    such as personal computers, personal digital assistants and
    vehicle mounted terminals.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|
| |  | Retain and capitalize on our large, high-quality wireless
    subscriber base. With approximately 19.1 million
    subscribers as of April 30, 2005, we have the largest
    wireless subscriber base in Korea. We focus on maintaining and
    expanding our high-quality subscriber base through the provision
    of enhanced wireless services, particularly advanced wireless
    data and Internet based applications, at higher speeds than
    previously available. As part of this strategy, we encourage our
    CDMA subscribers to migrate to our CDMA 1xRTT network.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|
| |  | Position ourselves to be a leader in implementing new and
    improved wireless technologies. We pursue a research and
    development program designed to allow us to implement new
    wireless technologies as market opportunities arise. We operate
    a network research and development center which is focused on
    wireless network design, digital cellular technologies and
    wireless telecommunications applications. This center includes a
    research team that is helping to develop fourth generation
    wireless technology, which is expected to enable wireless data
    transmission at speeds of up to 155 Mbps, 70 times
    faster than 3G technology. We have acquired a license to
    develop and operate a W-CDMA network using
    2 × 20 MHz of spectrum in the 2 GHz
    band. We have commenced provision of our IMT-2000 services based
    on our W-CDMA network on a limited basis in Seoul at the end of
    2003. We expect to provide W-CDMA services in the Seoul
    metropolitan area and other local metropolitan areas of Korea by
    the end of 2005. In the first half of 2006, we plan to start
    deploying high speed download packet access (HSDPA),
    also known as 3.5G technology, which enables data to be
    transmitted at speeds of up to two to three times faster than
    1xEV/DO. We have commenced testing of the system that will
    enable such upgrade to HSDPA by simply upgrading applicable
    software and without requiring any new infrastructure.
|
| |  | Take initiative in transition to the convergent and
    ubiquitous era. We are striving to satisfy our
    customers ever-growing needs by launching such new
    services as Telematics, Broadband Convergence Networks and
    Digital Home. In particular, we obtained a 2.3Ghz portable
    Internet (WiBro) service license in January of 2005. This
    service will be deployed in a way that will maximize its
    synergistic effect with conventional mobile phone services. We
    are actively implementing new businesses with an objective of
    achieving significant synergies between our subsidiary and
    affiliate companies. In this regard, TU Media Corp., one of our
    affiliates, successfully launched satellite DMB service in May
    2005.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|
| |  | Continue to reach for overseas markets. We have been
    seeking advancement into various overseas markets. Through the
    launch of a joint venture company with China Unicom in February
    2004, we are rapidly extending our wireless Internet service in
    China. We are also providing a CDMA cellular service in the
    Vietnamese market. In addition, we have been exporting Coloring
    solution, and wireless Internet platforms and solutions, to such
    countries as Taiwan and Thailand. We established a joint venture
    with EarthLink, the third largest Internet service provider in
    the U.S., to launch voice and data services across the
    U.S. as a mobile virtual network operator (MVNO) in 2005.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                

Merger with Shinsegi




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| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Decommissioned Shinsegis former network and transfer
    Shinsegis former subscribers to SK Telecoms
    networks. We have allowed transferred subscribers to continue
    receiving services under their existing rate plans. However,
    after the merger, no new subscribers have been accepted under
    Shinsegis plans and further marketing efforts have been
    limited to the SK Telecom brands. Shinsegis subscribers
    did not have to purchase new handsets, were allowed to use the
    same telephone numbers assigned to them and had access to the
    same services as before the merger.
|
| |  | Re-allocated the spectrum formerly used by Shinsegis
    network to SK Telecoms CDMA and CDMA 1xRTT networks.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|
| |  | A portion of Shinsegis former network equipment was
    re-deployed in SK Telecoms CDMA network or sold for use
    outside Korea. The remainder of Shinsegis former network
    equipment was discarded and written off and an impairment loss
    of Won 185.8 billion was recorded in 2002.                                                                                                                                                                                                                                                                                                                  



BUSINESS OVERVIEW


Cellular Services










27



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Wireless Internet Services




On Line Services and Internet Access










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Global Business




| |                                                                 
| | ----------------------------------------------------------------
| | Exports of wireless Internet Technology and Network
    Solution







| |                    
| | -------------------
| | Overseas Operations



U.S.A.


China.


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Vietnam.


Mongolia.


M-Commerce










Multimedia




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Other Products and Services




| |                      
| | ---------------------
| | Handset Manufacturing





| |                               
| | ------------------------------
| | International calling services



31



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| |           
| | ----------
| | Telematics



W-CDMA Network










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Revenues, Rates and Facility Deposits




|                                          |       |                                           |         |         |      |   |         |          |  |   |         |          | 
|----------------------------------------- | ----- | ----------------------------------------- | ------- | ------- | ---- | - | ------- | -------- |  | - | ------- | -------- | 
|                                          |       | As of and For the Year Ended December 31, |        
|                                          |       |                                           |        
|                                          |       | 2002                                      |         |         | 2003 |   |         | 2004     | 
|                                          |       |                                           |         |         |      |   |         |          | 
|                                          |       | (In billions of Won)                      |        
|Initial Connection Fees                   |       | W                                         | 230.4   |         |      | W | 176.6   |          |  | W | 198.4   |         
|Monthly Access Fees                       |       |                                           | 3,055.4 |         |      |   | 3,132.2 |          |  |   | 3,266.1 |         
|Usage Charges                             |       |                                           | 3,415.6 |         |      |   | 3,615.1 |          |  |   | 5,300.7 |         
|Interconnection Revenue                   |       |                                           | 1,043.2 |         |      |   | 1,017.1 |          |  |   | 849.4   |         
|Revenue from Sales of Digital Handsets(1) |       |                                           | 534.0   |         |      |   | 612.0   |          |  |   | 649.8   |         
|Other Revenue(2)                          |       |                                           | 878.2   |         |      |   | 1,538.8 |          |  |   | 33.2    |         
|                                          |       |                                           |         |         |      |   |         |          | 
|                                          | Total |                                           | W       | 9,156.8 |      |   | W       | 10,091.8 |  |   | W       | 10,297.6 | 
|                                          |       |                                           |         |         |      |   |         |          | 
|Additional Facility Deposits              |       | W                                         | 11.0    |         |      | W | 5.0     |          |  | W | 31.8    |         
|Refunded Facility Deposits                |       |                                           | 20.6    |         |      |   | 7.7     |          |  |   | 44.6    |         
|Facility Deposits at Period End           |       |                                           | 46.9    |         |      |   | 44.2    |          |  |   | 31.4    |         






|    |                                                                                                                                                                     
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Our revenue from handset sales consists of sales by our
    subsidiary, SK Teletech.                                                                                
|   
|(2) | Other revenue includes revenue from value-added services,
    including voice-activated dialing, caller ID, call forwarding,
    call waiting and three-way calling.









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|                  |  |            |               |     |                   |  |            |                     |  |   |                     |  |  |                  |       |  |  |   |      | 
|----------------- |  | ---------- | ------------- | --- | ----------------- |  | ---------- | ------------------- |  | - | ------------------- |  |  | ---------------- | ----- |  |  | - | ---- | 
|                  |  |            |               |     |                   |  |            | Off-Peak Usage      |  |   | Night-Time          | 
|                  |  | Monthly    |               |     | Included Airtime/ |  |            | Peak Usage Charges  |  |   | Charges             |  |  | Usage Charges    |      
|                  |  | Access Fee |               |     | Discount(1)(2)    |  |            | (per 10 seconds)(2) |  |   | (per 10 seconds)(2) |  |  | (per 10 seconds) |      
|                  |  |            |               |     |                   |  |            |                     |  |   |                     |  |  |                  |      
|Standard          |  |            |               |     |                   |  |            |                     |  |   |                     |  |  |                  |       |  |  |   |      | 
|Regular           |  |            | W13,000       |     |                   |  | 10 minutes |                     |  | W | 20                  |  |  | W                | 13    |  |  | W | 10   | 
|Slim              |  |            | 12,500        |     |                   |  |            |                     |  |   | 19                  |  |  |                  | 19    |  |  |   | 19   | 
|Family            |  |            | 13,000        |     |                   |  | 5 minutes  |                     |  |   | 18                  |  |  |                  | 12    |  |  |   | 9    | 
|Silver(3)         |  |            | 11,000        |     |                   |  | 30 minutes |                     |  |   | 38                  |  |  |                  | 38    |  |  |   | 38   | 
|TTL Plans         |  |            |               |     |                   |  |            |                     |  |   |                     |  |  |                  |       |  |  |   |      | 
|TTL Discount(4)   |  |            | 15,500-22,000 |     |                   |  | 7 minutes  |                     |  |   | 9-21                |  |  |                  | 9-20  |  |  |   | 9-12 | 
|Ting Plans        |  |            |               |     |                   |  |            |                     |  |   |                     |  |  |                  |       |  |  |   |      | 
|Ting              |  |            | 12,500-15,000 |     |                   |  | 70 minutes |                     |  |   | 12-37               |  |  |                  | 12-24 |  |  |   | 9-18 | 
|Data Free Plan(5) |  |            | 26,000        |     |                   |  |            |                     |  |   |                     |  |  |                  |       |  |  |   |      | 
|Free Plans      |  |            |               |     |                   |  |            |                     |  |   |                     |  |  |                  |       |  |  |   |      | 
|Free Holiday      |  |            |              | (6) |                   |  |            |                     |  |   |                     |  |  |                  |       |  |  |   |      | 
|Free Eleven       |  |            |              | (7) |                   |  |            |                     |  |   |                     |  |  |                  |       |  |  |   |      | 






|    |                                                                                                                                                                                                                                                                                                                                                                                                                             
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Discounts may include free text messages, ring tone downloads,
    colorings and NATE minutes.                                                                                                                                                                                                                                                                                                                              
|   
|(2) | Excludes a 5% discount on domestic calls for customers who have
    subscribed to our cellular services for over 1 year; a 10%
    discount for customers who have subscribed to our cellular
    services over 2 years; a 15% discount for customers who
    have subscribed to our cellular services over 3 years and a
    20%, discount for customers who have subscribed to our cellular
    services for over 5 years.
|   
|(3) | Subscribers must be 65 years old or older and each
    subscriber is limited to one silver Plan.                                                                                                                                                                                                                                                                                                                            
|   
|(4) | Includes TTL plan for designated numbers, designated area and
    TTL plan for couples.                                                                                                                                                                                                                                                                                                                                     
|   
|(5) | Includes unlimited use of data service. Plan will be offered
    until September 30, 2005 and offer is effective until
    June 30, 2005.                                                                                                                                                                                                                                                                                   
|   
|(6) | 11 hours of free weekend airtime for an additional
    Won 10,000 per month.                                                                                                                                                                                                                                                                                                                                                
|   
|(7) | 11 hours of free airtime exceeding the average number of
    minutes used November and December 2003 for an additional
    Won 15,000 per month.                                                                                                                                                                                                                                                                            



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Subscribers






| |   |                                                                                                                                                                                                                                   
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | our expansion and technical enhancement of our digital network,
    including with high-speed data capabilities;                                                                                                                  
|
| |  | increasing consumer awareness of the benefits of wireless
    telecommunications;                                                                                                                                                 
|
| |  | until June 2000, when the MIC prohibited subsidies on handset
    sales, the decline in handset prices in Korea through the
    payment of subsidies to subscribers, which effectively lowered
    the cost of initiating service;
|
| |  | an effective marketing strategy;                                                                                                                                                                                                  
|
| |  | our focus on customer service;                                                                                                                                                                                                    

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| |   |                                                                                                                                                                                               
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | the introduction of new, value-added services, such as voicemail
    services, call-forwarding, caller ID, three-way calling and
    wireless data and Internet services provided by NATE; and
|
| |  | our acquisition of Shinsegi.                                                                                                                                                                  



|                              |  |                                          |            |   |      |  |            |      |  |  |            |  
|----------------------------- |  | ---------------------------------------- | ---------- | - | ---- |  | ---------- | ---- |  |  | ---------- | -
|                              |  | As of or For the Year Ended December 31, |           
|                              |  |                                          |           
|                              |  | 2002                                     |            |   | 2003 |  |            | 2004 | 
|                              |  |                                          |            |   |      |  |            |      | 
|Subscribers                   |  |                                          | 17,219,562 |   |      |  | 18,313,153 |      |  |  | 18,783,338 |  
|Subscribers Growth Rate       |  |                                          | 13.4       | % |      |  | 6.4        | %    |  |  | 2.6        | %
|Activations                   |  |                                          | 4,769,612  |   |      |  | 3,688,312  |      |  |  | 4,407,087  |  
|Deactivations                 |  |                                          | 2,729,113  |   |      |  | 2,594,721  |      |  |  | 3,936,884  |  
|Average Monthly Churn Rate(1) |  |                                          | 1.4        | % |      |  | 1.2        | %    |  |  | 1.7        | %






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Average monthly churn rate for a period is the number calculated
    by dividing the sum of deactivations during the period by the
    simple average of the number of subscribers at the beginning and
    end of the period and dividing the quotient by the number of
    months in the period. Churn includes subscribers who upgrade to
    CDMA 1xRTT or CDMA lxEV/DO-capable handsets by terminating their
    service and opening a new subscriber account.







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|          |       |           |         |           |           |  |         |           |  |  |           |           |  |           |        |         |           |  |         |         |  |  |         |         |  |  |         |           | 
|--------- | ----- | --------- | ------- | --------- | --------- |  | ------- | --------- |  |  | --------- | --------- |  | --------- | ------ | ------- | --------- |  | ------- | ------- |  |  | ------- | ------- |  |  | ------- | --------- | 
|Month     |       | SKT → KTF |         |           | SKT → LGT |  |         | KTF → SKT |  |  | KTF → LGT |           |  | LGT → SKT |        |         | LGT → KTF |  |         | Total   | 
|          |       |           |         |           |           |  |         |           |  |  |           |           |  |           |        |         |           |  |         |         | 
|Jan. 2004 |       |           | 203,853 |           |           |  | 101,414 |           |  |  |          |           |  |           |       |         |           |  |        |         |  |  |        |         |  |  | 305,267 |          
|Feb. 2004 |       |           | 102,282 |           |           |  | 81,594  |           |  |  |          |           |  |           |       |         |           |  |        |         |  |  |        |         |  |  | 183,876 |          
|Mar. 2004 |       |           | 111,077 |           |           |  | 103,155 |           |  |  |          |           |  |           |       |         |           |  |        |         |  |  |        |         |  |  | 214,232 |          
|Apr. 2004 |       |           | 139,508 |           |           |  | 122,146 |           |  |  |          |           |  |           |       |         |           |  |        |         |  |  |        |         |  |  | 261,654 |          
|May 2004  |       |           | 167,228 |           |           |  | 92,414  |           |  |  |          |           |  |           |       |         |           |  |        |         |  |  |        |         |  |  | 259,642 |          
|Jun. 2004 |       |           | 137,489 |           |           |  | 73,100  |           |  |  |          |           |  |           |       |         |           |  |        |         |  |  |        |         |  |  | 210,589 |          
|Jul. 2004 |       |           | 53,611  |           |           |  | 23,116  |           |  |  | 277,751   |           |  |           | 20,504 |         |           |  |        |         |  |  |        |         |  |  | 374,982 |          
|Aug. 2004 |       |           | 29,698  |           |           |  | 60,240  |           |  |  | 67,743    |           |  |           | 45,724 |         |           |  |        |         |  |  |        |         |  |  | 203,405 |          
|Sep. 2004 |       |           | 90,075  |           |           |  | 49,959  |           |  |  | 5,744     |           |  |           | 42,995 |         |           |  |        |         |  |  |        |         |  |  | 188,773 |          
|Oct. 2004 |       |           | 64,563  |           |           |  | 46,169  |           |  |  | 62,131    |           |  |           | 39,701 |         |           |  |        |         |  |  |        |         |  |  | 212,564 |          
|Nov. 2004 |       |           | 74,478  |           |           |  | 56,135  |           |  |  | 59,578    |           |  |           | 51,802 |         |           |  |        |         |  |  |        |         |  |  | 241,993 |          
|Dec. 2004 |       |           | 97,210  |           |           |  | 47,635  |           |  |  | 94,466    |           |  |           | 41,773 |         |           |  |        |         |  |  |        |         |  |  | 281,084 |          
|Jan. 2005 |       |           | 145,295 |           |           |  | 71,142  |           |  |  | 135,862   |           |  |           | 75,069 |         |           |  | 115,197 |         |  |  | 106,024 |         |  |  | 649,589 |          
|Feb. 2005 |       |           | 120,638 |           |           |  | 32,654  |           |  |  | 106,099   |           |  |           | 33,629 |         |           |  | 49,159  |         |  |  | 57,555  |         |  |  | 399,734 |          
|Mar. 2005 |       |           | 125,453 |           |           |  | 43,690  |           |  |  | 112,711   |           |  |           | 47,696 |         |           |  | 48,823  |         |  |  | 56,743  |         |  |  | 435,116 |          
|Apr. 2005 |       |           | 120,781 |           |           |  | 69,318  |           |  |  | 131,266   |           |  |           | 72,072 |         |           |  | 55,483  |         |  |  | 47,863  |         |  |  | 496,783 |          
|          |       |           |         |           |           |  |         |           |  |  |           |           |  |           |        |         |           |  |         |         | 
|          | Total |           |         | 1,783,239 |           |  |         | 1,073,881 |  |  |           | 1,053,351 |  |           |        | 470,965 |           |  |         | 268,662 |  |  |         | 268,185 |  |  |         | 4,919,283 | 
|          |       |           |         |           |           |  |         |           |  |  |           |           |  |           |        |         |           |  |         |         | 



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|               |  |                                                  |               |  |            |  |               |            |  |  |               | 
|-------------- |  | ------------------------------------------------ | ------------- |  | ---------- |  | ------------- | ---------- |  |  | ------------- | 
|               |  | Number of New Wireless Subscribers/Percentage of |              
|               |  | New Wireless Subscribers                         |              
|               |  |                                                  |              
|Month          |  | SK Telecom                                       |               |  | KT Freetel |  |               | LG Telecom | 
|               |  |                                                  |               |  |            |  |               |            | 
|January 2004   |  |                                                  | 382,420/42.1% |  |            |  | 375,181/41.3% |            |  |  | 149,737/16.5% | 
|February 2004  |  |                                                  | 422,816/43.6% |  |            |  | 329,066/33.9% |            |  |  | 218,435/22.5% | 
|March 2004     |  |                                                  | 405,199/39.0% |  |            |  | 356,003/34.3% |            |  |  | 276,537/26.6% | 
|April 2004     |  |                                                  | 448,997/41.2% |  |            |  | 330,441/30.3% |            |  |  | 309,736/28.4% | 
|May 2004       |  |                                                  | 499,799/48.1% |  |            |  | 353,389/34.0% |            |  |  | 186,011/17.9% | 
|June 2004      |  |                                                  | 327,863/43.7% |  |            |  | 305,488/40.7% |            |  |  | 117,594/15.7% | 
|July 2004      |  |                                                  | 332,833/63.5% |  |            |  | 132,141/25.2% |            |  |  | 59,151/11.3%  | 
|August 2004    |  |                                                  | 185,687/42.2% |  |            |  | 112,455/25.5% |            |  |  | 142,308/32.3% | 
|September 2004 |  |                                                  | 28,626/6.7%   |  |            |  | 256,558/60.3% |            |  |  | 140,351/33.0% | 
|October 2004   |  |                                                  | 276,359/48.3% |  |            |  | 169,364/29.6% |            |  |  | 125,994/22.0% | 
|November 2004  |  |                                                  | 278,694,45.7% |  |            |  | 183,200/30.0% |            |  |  | 148,562/24.3% | 
|December 2004  |  |                                                  | 240,306/43.6% |  |            |  | 200,054/36.3% |            |  |  | 110,269/20.0% | 
|January 2005   |  |                                                  | 233,921/40.6% |  |            |  | 209,182.36.3% |            |  |  | 132,639/23.0% | 
|February 2005  |  |                                                  | 248,073/43.1% |  |            |  | 231,803/40.3% |            |  |  | 95,236/16.6%  | 
|March 2005     |  |                                                  | 257,062/43.0% |  |            |  | 229,202/38.4% |            |  |  | 111,036/18.6% | 
|April 2005     |  |                                                  | 214,949/45.5% |  |            |  | 148,820/31.5% |            |  |  | 108,962/23.0% | 



Marketing and Service Distribution










38



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Interconnection




|     |  |              |       |  |            |  |       |            |  |  |       | 
|---- |  | ------------ | ----- |  | ---------- |  | ----- | ---------- |  |  | ----- | 
|Year |  | SK Telecom   |       |  | KT Freetel |  |       | LG Telecom | 
|     |  |              |       |  |            |  |       |            | 
|     |  | (Won/Minute) |      
|2003 |  |              | 41.02 |  |            |  | 47.99 |            |  |  | 52.89 | 
|2004 |  |              | 31.81 |  |            |  | 47.66 |            |  |  | 58.55 | 
|2005 |  |              | 31.19 |  |            |  | 46.70 |            |  |  | 54.98 | 

39



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| |               
| | --------------
| | Domestic calls



Wireless-to-Fixed-line.


Fixed-line-to-Wireless.






Wireless-to-Wireless.


40



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| |                    
| | -------------------
| | International calls





| |                                   
| | ----------------------------------
| | International roaming arrangements





Digital Cellular Network






| |              
| | -------------
| | CDMA Networks







41



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| |                   
| | ------------------
| | CDMA 1xRTT Network







| |               
| | --------------
| | W-CDMA Network





| |                       
| | ----------------------
| | Network infrastructure





| |   |                                                                                                                                                                                                                                         
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | cell sites, which are physical locations equipped with
    transmitters, receivers and other equipment that communicate by
    radio signals with wireless handsets within range of the cell
    (typically a 3 to 40 kilometer radius);
|
| |  | base station transceiver subsystems, which manage the
    radio transmission by the equipment located at one or more cell
    sites, including radio-channel management, message transport and
    hand-off of calls between cell sites;
|
| |  | switching stations, which switch calls to the proper
    destinations; and                                                                                                                                                              

42



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| |   |                                                                                                                                                                                         
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | leased lines, microwave links or other connectionswhich
    link the switching stations, cell sites and the public switched
    telephone networks of KT Corporation and Hanaro Telecom.



|                                                     |  |            |       |           |          |  |    | 
|---------------------------------------------------- |  | ---------- | ----- | --------- | -------- |  | -- | 
|                                                     |  |            |       | Switching |         
|                                                     |  | Cell Sites |       |           | Stations | 
|                                                     |  |            |       |           |          | 
|CDMA Network (excluding CDMA lxRTT and CDMA 1xEV/DO) |  |            | 5,484 |           |          |  | 56 | 
|CDMA 1xRTT Network and CDMA 1xEV/DO                  |  |            | 3,348 |           |          |  | 55 | 
|W-CDMA                                               |  |            | 626   |           |          |  | 3  | 







Other Investments and Relationships




Wireless Application Developers and Content
Providers.




| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Information Technology and Content Providers. We hold
    investments in approximately 40 companies, with an
    aggregate book value of approximately Won 36.0 billion
    as of December 31, 2004, which develop technology and
    content for use in our fixed-line and wireless data and Internet
    businesses and for continuing development of our multimedia
    platforms and networks.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|
| |  | Joint Ventures. We own a 50% interest in a joint venture
    with Hewlett-Packard Company to support development of next
    generation wireless multi-media and mobile commerce services and
    a 50% interest in a joint venture with Qualcomm Incorporated,
    formed for the purpose of funding venture startup companies
    engaged in development and commercialization of new applications
    or services utilizing CDMA technology. We have committed to
    invest US$5 million in each of these ventures. As of
    December 31, 2004, we invested Won 5.1 billion in
    our joint venture with Qualcomm and Won 5.3 billion in
    our joint venture with Hewlett-Packard. In addition, pursuant to
    an agreement entered into on March 20, 2003, we established
    in December 2003, UniSK, a joint venture company with China
    Unicom, Chinas second largest mobile phone operator and
    exclusive CDMA wireless service provider, to develop wireless
    Internet platform and content. We and China Unicom have a 49%
    interest and 51%

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| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |   | interest, respectively, in UniSK. UniSK, which had an initial
    capitalization of US$6 million, commenced offering portal
    services in February 2004. In September 2003, we reached a
    business cooperation agreement with Teliasonera for the purpose
    of jointly developing and commercializing new businesses
    cross-licensing, partnership exchange and joint advancement into
    overseas markets. On September 16, 2003, we signed a
    memorandum of understanding with Alcatel for a joint development
    of a Mobile Payment Service by combining our Nemo with
    Alcatels Prepayment Instant Billing System.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|
| |  | Mobile Broadcasting Corporation. In September 2003, we
    entered into an agreement with Mobile Broadcasting Corporation,
    a wireless multi-media company in Japan, for the purposes of
    co-owning and launching a satellite for the satellite DMB
    business. MBCO is a developer and provider of content and
    technology related to wireless multimedia services and developed
    new services in Satellite DMB. Under the terms of the agreement,
    SK Telecom is committed to fund 34.7% of the cost of launching
    and maintaining the operations of the satellite, which is
    approximately Won 100.8 billion. As of
    December 31, 2004, we have invested a total of
    Won 27.3 billion, and had a 7.3% interest in MBCO. We
    launched the satellite in March 2004. In March 2004, we were
    assigned by the MIC frequency for satellite DMB. In October
    2004, we granted the right to use our satellite, satellite orbit
    and frequency to TU Media Corp., one of our affiliates, which
    received a license from the MIC as a satellite DMB provider
    on December 30, 2004. On May 1, 2005, TU Media
    Corp. began to provide satellite DMB services. See
    Information on the Company  Multimedia.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|
| |  | Mobile Data and Digital Content Market. In order to
    generate new revenue from the ever growing mobile data and
    digital content market, we plan to increase our investment in
    the entertainment sector, particularly in music, movies and
    games. As mobile data and digital content market has become
    increasingly important in the growth of our business, we are
    seeking to secure valuable mobile data and digital contents by
    making equity investment in various content providers. In March
    2005, we acquired 8 million shares, or 21.66% of the issued
    and outstanding shares of iHQ Inc. for
    Won 14.44 billion with an option to
    purchase 5 million additional shares from
    Mr. Hun-Tak Jeong, a majority shareholder of iHQ Inc.,
    during the period starting on March 15, 2006 and ending on
    April 30, 2006. iHQ Inc. is an entertainment management
    firm producing films, managing entertainers and operating
    on-line game services. In addition, our board of directors
    resolved to form a movie fund on May 3, 2005
    and a music fund on May 27, 2005, each with
    local investment companies to expand our business to media and
    entertainment. The size of the fund will be around
    Won 20 billion and Won 29.7 billion,
    respectively. Once each of the fund is formed, we will have a
    26.66% interest in the movie fund and a 99.0% interest in the
    music fund. On May 27, 2005, our board of directors also
    resolved to purchase a 60% interest in YBM Seoul Records, one of
    the leading record companies in Korea whose music sources are
    critical in our advancement into digital music business from the
    offline record label business, for Won 29.2 billion.

Foreign Wireless Telecommunications Operators.




| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Skytel. In July 1999, we acquired a 27.8% equity interest
    in Skytel, Mongolias second-largest cellular service
    provider, by providing approximately Won 1.5 billion
    worth of analog infrastructure. As of December 31, 2004,
    Skytel had approximately 75,607 subscribers. We, together with
    Skytel, have been providing cellular service in Mongolia since
    July 1999, and CDMA service since February 2001. In April 2001,
    we completed installing the equipment necessary to provide WAP
    service. In December 2002, we subscribed to the newly issued
    common shares of Skytel. As a result, as of December 31,
    2004, our equity interest in Skytel is 28.6%.                                     
|
| |  | SLD Telecom. In a series of transactions during 2000, we
    entered the Vietnam CDMA market through the acquisition of a
    53.8% equity interest of SLD Telecom Pte. Ltd. in return for an
    investment of US$1.35 million. SLD Telecom entered into a
    business cooperation contract with Saigon Post &
    Telecommunication Services Corporation to provide CDMA service
    throughout Vietnam. We commenced CDMA service through Saigon
    Post & Telecommunication Service Corporation in July
    2003. Under the business cooperation contract, SLD Telecom will
    contribute no less than $150 million to the investment
    capital for the joint CDMA business in Vietnam through 2016,
    which amount will include

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| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |   | capital expenditures as well as contribution to the working
    capital. Our contribution amount will be determined according to
    our equity interests in SLD Telecom from time to time. We have
    invested US$86.2 million as of December 31, 2004.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|
| |  | SK-EarthLink. On March 24, 2005, EarthLink and we
    completed the formation of SK-EarthLink, a joint venture to
    market wireless voice and data services in the U.S. The
    joint-venture is a non-facilities-based nationwide mobile
    virtual network operator (MVNO) offering cellular
    voice and data services to U.S. consumers. SK-EarthLink
    expects to enter into a previously under-served, but rapidly
    growing wireless data, entertainment, and voice market.
    SK-EarthLink will leverage our expertise in developing and
    implementing 3G technology and other cutting-edge applications
    and EarthLinks established sales channels, Wi-Fi
    experience, network data centers and billing capabilities. Each
    of the Company and EarthLink has a 50 percent voting and
    economic ownership interests in SK- EarthLink.

Other Investments.




| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Hanaro Telecom. As of December 31, 2004, we owned a
    4.8% interest in the outstanding capital stock of Hanaro
    Telecom. On September 2, 2003, we purchased
    Won 120.0 billion of Hanaro Telecom commercial paper
    in order to provide Hanaro Telecom with short-term liquidity
    while it attempted to secure a foreign investor that would
    inject new capital into the company. The decision to provide
    liquidity support to Hanaro Telecom was made to protect the
    value of our stake in Hanaro Telecom. Following an investment in
    Hanaro Telecom by a consortium led by AIG and Newbridge, we
    disposed of the Hanaro Telecom commercial paper in December
    2003. In May 2004, we purchased from Samsung Electronics Co.,
    Ltd. 13,870,000 shares of Hanaro Telecom, representing 3.0%
    of the outstanding shares of Hanaro for Won 39.3 billion as
    part of our strategic efforts in consideration of increasing
    convergence between wireless and fixed-line services. As a
    result of the acquisition, our equity interest in Hanaro
    increased to 4.8% as of December 31, 2004, up from 1.8% as
    of December 31, 2003.
|
| |  | Powercomm. We currently own a 5.0% interest in Powercomm
    Corporation with a book value as of December 31, 2004 of
    Won 71.6 billion. For more information, see
    note 3 of the notes to our consolidated financial
    statements. Powercomm is an operator of fixed-line networks that
    provides wholesale fixed-line network services, such as leased
    lines, to telecommunications, Internet and cable television
    service providers in Korea. We have no current plans to either
    increase or decrease our investment in Powercomm.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|
| |  | SKC&C. We currently own a 30.0% equity interest in
    SKC&C Co., Ltd. with a book value as of December 31,
    2004 of Won 201.4 billion. SKC&C is an information
    technologies services provider. Substantially all of
    SKC&Cs revenue is generated from services provided to
    member companies of the SK group, including us. We are party to
    several service contracts with SKC&C related to development
    and maintenance of our information technologies systems. See
    Major Shareholders and Related Party
    Transactions  Certain Relationships and Related Party
    Transactions.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|
| |  | SK Group Japan Co., Ltd. In December 2001, we invested
    Won 5.3 billion in SK Group Japan Co., Ltd., a trading
    company. We held a 16.5% equity interest in SK Group Japan with
    an acquisition cost of Won 16.4 billion, which was
    written off due to an impairment. SK Group Japan was dissolved
    as of January 17, 2005.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|
| |  | SK Communications. In August 2002, we purchased a 44.5%
    interest from Mirae Corporation in Lycos Korea, one of
    Koreas leading Internet portals, for
    Won 12.3 billion. Subsequently, we subscribed for
    additional shares in Lycos Korea and increased our interest in
    Lycos Korea to 90.3%. Lycos Korea was renamed SK Communications
    after it acquired Netsgo Co., Ltd. and business rights to
    Nate.com service in November 2002. SK Communications
    subsequently consolidated services from Lycos and Nate.com to
    offer portal service on-line.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   



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Competition














46



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Law and Regulation




| |         
| | --------
| | Overview





| |   |                                                                                      
| | - | -------------------------------------------------------------------------------------
| |  | entry into the telecommunications industry;                                          
|
| |  | scope of services provided by telecommunications service
    providers;              
|
| |  | allocation of radio spectrum;                                                        
|
| |  | setting of technical standards and promotion of technical
    standardization;       
|
| |  | rates, terms and practices of telecommunications service
    providers;              
|
| |  | customer complaints;                                                                 
|
| |  | interconnection and revenue-sharing between telecommunications
    service providers;

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| |   |                                                                                                   
| | - | --------------------------------------------------------------------------------------------------
| |  | disputes between telecommunications service providers;                                            
|
| |  | research and development budgeting and objectives of
    telecommunications service providers; and
|
| |  | competition among telecommunications service providers.                                           









| |                
| | ---------------
| | Rate Regulation





| |                
| | ---------------
| | Interconnection





| |                                   
| | ----------------------------------
| | Wireless Internet Network Co-Share



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| |                                                                            
| | ---------------------------------------------------------------------------
| | Contributions to Fund for Development of Information
    Telecommunications







| |                             
| | ----------------------------
| | Universal Service Obligation



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| |                     
| | --------------------
| | Frequency Allocation







| |                       
| | ----------------------
| | Competition Regulation









| |                   
| | ------------------
| | Number Portability



50



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| |                                      
| | -------------------------------------
| | Contribution to 114 Directory Service





| |                                                                   
| | ------------------------------------------------------------------
| | Foreign Ownership and Investment Restrictions and
    Requirements





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| |                                                               
| | --------------------------------------------------------------
| | Restrictions on Investment in Telecommunications
    Companies



Patents and Licensed Technology






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Organizational Structure






| |                         
| | ------------------------
| | Significant subsidiaries



PROPERTY, PLANTS AND EQUIPMENT




|        |  |                  |         |  |             |  |                         |          |  |  |           | 
|------- |  | ---------------- | ------- |  | ----------- |  | ----------------------- | -------- |  |  | --------- | 
|        |  | Approximate Area |         |  |             |  | Nature of               |         
|        |  | in Square Feet   |         |  | Primary Use |  |                         | Interest | 
|        |  |                  |         |  |             |  |                         |          | 
|Seoul   |  |                  | 988,654 |  |             |  | Corporate Headquarters  |          |  |  | Ownership | 
|Seoul   |  |                  | 607,246 |  |             |  | Regional Headquarters   |          |  |  | Ownership | 
|Seoul   |  |                  | 162,406 |  |             |  | Customer Service Center |          |  |  | Ownership | 
|Taegu   |  |                  | 153,623 |  |             |  | Regional Headquarters   |          |  |  | Ownership | 
|Taejon  |  |                  | 565,773 |  |             |  | Regional Headquarters   |          |  |  | Ownership | 
|Kwangju |  |                  | 265,610 |  |             |  | Regional Headquarters   |          |  |  | Ownership | 
|Pusan   |  |                  | 363,422 |  |             |  | Regional Headquarters   |          |  |  | Ownership | 
|Sungnam |  |                  | 482,783 |  |             |  | Central Research and    |          |  |  | Ownership | 
|        |  |                  |         |  |             |  | Development Laboratory  |          |  |  |           | 
|Ichon   |  |                  | 279,550 |  |             |  | Training Center         |          |  |  | Ownership | 
|Wonju   |  |                  | 116,562 |  |             |  | Regional Headquarters   |          |  |  | Ownership | 
|Yongin  |  |                  | 589,625 |  |             |  | Training Center         |          |  |  | Ownership | 





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Item. 5     Operating and
Financial Review and Prospects




Overview


Revenue.




|                  |                                                |                                          |   |         |         |  |   |          |          |  |   |          |          | 
|----------------- | ---------------------------------------------- | ---------------------------------------- | - | ------- | ------- |  | - | -------- | -------- |  | - | -------- | -------- | 
|                  |                                                | Year Ended December 31,                  |  
|                  |                                                |                                          |  
|                  |                                                | 2002                                     |   |         | 2003    |  |   | 2004     |         
|                  |                                                |                                          |   |         |         |  |   |          |         
|                  |                                                | (In billions of Won, except percentages) |  
|Cellular Revenue: |                                                |                                          |   |         |         |  |   |          |          |  |   |         
|                  | Wireless Services(1)                           |                                          | W | 7,579.6 |         |  | W | 8,462.7  |          |  | W | 8,798.4  |         
|                  | Interconnection                                |                                          |   | 1,043.2 |         |  |   | 1,017.1  |          |  |   | 849.4    |         
|                  | Digital Handset Sales                          |                                          |   | 534.0   |         |  |   | 612.0    |          |  |   | 649.8    |         
|                  |                                                |                                          |   |         |         |  |   |          |         
|                  | Total Cellular Revenue                         |                                          |   | 9,156.8 |         |  |   | 10,091.8 |          |  |   | 10,297.6 |         
|Other Revenue:    |                                                |                                          |   |         |         |  |   |          |          |  |   |         
|                  | Paging Revenue(2)                              |                                          |   |        |         |  |   |         |          |  |   |         |         
|                  | International Calling Service(3)               |                                          |   | 101.6   |         |  |   | 97.4     |          |  |   | 126.3    |         
|                  | Portal Service(4)                              |                                          |   | 22.8    |         |  |   | 42.0     |          |  |   | 85.0     |         
|                  | Miscellaneous                                  |                                          |   | 42.8    |         |  |   | 40.9     |          |  |   | 61.7     |         
|                  |                                                |                                          |   |         |         |  |   |          |         
|                  | Total Other Revenue                            |                                          |   | 167.2   |         |  |   | 180.3    |          |  |   | 273.0    |         
|                  |                                                |                                          |   |         |         |  |   |          |         
|                  |                                                | Total Operating Revenue:                 |   | W       | 9,324.0 |  |   | W        | 10,272.1 |  |   | W        | 10,570.6 | 
|                  |                                                |                                          |   |         |         |  |   |          |         
|                  | Cellular Revenue as a percent of Total Revenue |                                          |   | 98.2    | %       |  |   | 98.2     | %        |  |   | 97.4     | %       
|                  | Total Operating Revenue Growth                 |                                          |   | 11.4    | %       |  |   | 10.2     | %        |  |   | 2.9      | %       






|    |                                                                                                                                                                                                                                                               
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Wireless service revenue includes initial connection fees,
    monthly access fees, usage charges, international charges,
    wireless Internet service fees, value-added-service fees and
    interest on overdue subscriber accounts (net of telephone tax).

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|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(2) | Prior to March 2001, we also earned revenue from initial
    connection fees and monthly access fees, usage charges and
    value-added service fees paid by our subscribers for our paging
    services. In March 2001, we sold our entire paging business to
    Real Telecom in exchange for 9.9% of Real Telecoms newly
    issued shares and bonds with a principal amount of Won
    9.5 billion that can be converted into an additional 7.8%
    interest in Real Telecom. Consequently, the results of the
    paging business are no longer included in the revenue from March
    2001. Our paging revenue for the year ended December 31,
    2001 was negligible.
|   
|(3) | Provided by our 90.8%-owned subsidiary, SK Telink Co., Ltd.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|   
|(4) | Portal service revenue attributable to SK Communications Co.,
    Ltd. and since 2003, Paxnet Co., Ltd.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        





55



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57



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|                                                          |                                            |                         |   |            |      |  |   |            |  |  |   |            | 
|--------------------------------------------------------- | ------------------------------------------ | ----------------------- | - | ---------- | ---- |  | - | ---------- |  |  | - | ---------- | 
|                                                          |                                            | Year Ended December 31, |  
|                                                          |                                            |                         |  
|                                                          |                                            | 2002(1)                 |   |            | 2003 |  |   | 2004       | 
|                                                          |                                            |                         |   |            |      |  |   |            | 
|Outgoing Voice Minutes (In Thousands):(2)                 |                                            |                         |   |            |      |  |   |            |  |  |   |           
|                                                          | SK Telecom                                 |                         |   | 37,629,656 |      |  |   | 42,175,874 |  |  |   | 43,184,944 | 
|                                                          | Shinsegi                                   |                         |   |           |      |  |   |           |  |  |   |           | 
|                                                          | Combined SK Telecom and Shinsegi           |                         |   | 37,629,656 |      |  |   | 42,175,874 |  |  |   | 43,184,944 | 
|Average Monthly Outgoing Voice Minutes Per Subscriber:(3) |                                            |                         |   |            |      |  |   |            |  |  |   |           
|                                                          | SK Telecom                                 |                         |   | 191        |      |  |   | 197        |  |  |   | 194        | 
|                                                          | Shinsegi                                   |                         |   |           |      |  |   |           |  |  |   |           | 
|                                                          | Combined SK Telecom and Shinsegi           |                         |   | 191        |      |  |   | 197        |  |  |   | 194        | 
|Average Monthly Revenue Per Subscriber:(4)                |                                            |                         |   |            |      |  |   |            |  |  |   |           
|                                                          | SK Telecom                                 |                         | W | 38,383     |      |  | W | 39,739     |  |  | W | 39,689     | 
|                                                          | Shinsegi                                   |                         |   |           |      |  |   |           |  |  |   |           | 
|                                                          | Consolidated SK Telecom and Shinsegi(4)(5) |                         |   | 38,383     |      |  |   | 39,739     |  |  |   | 39,689     | 






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Excludes information relating to Shinsegi for a period of
    12 days, from January 1, 2002 to January 12,
    2002. Shinsegi merged into SK Telecom on January 13, 2002.                                                                                                                                                                                                                                                                                                                                                                                                                                     
|   
|(2) | Does not include minutes of incoming calls or minutes of use
    relating the use of text messaging and data services.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|   
|(3) | The average monthly outgoing voice minutes per subscriber is
    computed by dividing the total minutes of outgoing voice usage
    for the period by the monthly weighted average number of
    subscribers for the period and dividing the quotient by the
    number of months in the period. The monthly weighted average
    number of subscribers is the sum of the average number of
    subscribers for the months calculated by taking the simple
    average number of subscribers at the beginning of the month and
    at the end of the month, divided by the number of months in the
    period.
|   
|(4) | The average monthly revenue per subscriber excludes
    interconnection revenue and is computed by dividing total
    initial connection fees, monthly access fees, usage charges for
    voice and data, international charges, value-added service fees
    and interest on overdue subscriber accounts (net of telephone
    tax) for the period by the monthly weighted average number of
    subscribers for the period and dividing the quotient by the
    number of months in the period.                                                                                                             
|   
|(5) | Including interconnection revenue, consolidated average monthly
    revenue per subscriber was Won 43,958 for 2002,
    Won 44,546 for 2003 and Won 43,542 for 2004.                                                                                                                                                                                                                                                                                                                                                                                                                                          







| |   |                                                       
| | - | ------------------------------------------------------
| |  | reduction of overall tariff by 3.7% in September 2004;
|
| |  | decrease in minutes of use; and                       

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| |   |                                                                         
| | - | ------------------------------------------------------------------------
| |  | decrease in caller ID rates by 50% that took effect in October
    2003.



Operating Expenses and Operating Margins.


Acquisition of Shinsegi.


Industry Consolidation.








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Results of Operations




|                                                 |  |                                              |         |   |      |  |        |      |  |   |          |  |  |  |        |   |  |   |          |   |  |  |        |  
|------------------------------------------------ |  | -------------------------------------------- | ------- | - | ---- |  | ------ | ---- |  | - | -------- |  |  |  | ------ | - |  | - | -------- | - |  |  | ------ | -
|                                                 |  | For the Year Ended December 31,              |        
|                                                 |  |                                              |        
|                                                 |  | 2002                                         |         |   | 2003 |  |        | 2004 | 
|                                                 |  |                                              |         |   |      |  |        |      | 
|                                                 |  | (In billions of Won, except percentage data) |        
|Operating Revenue                                |  | W                                            | 9,324.0 |   |      |  | 100.00 | %    |  | W | 10,272.1 |  |  |  | 100.00 | % |  | W | 10,570.6 |   |  |  | 100.00 | %
|Operating Expenses                               |  |                                              | 6,526.4 |   |      |  | 70.00  |      |  |   | 7,167.0  |  |  |  | 69.77  |   |  |   | 8,130.9  |   |  |  | 76.92  |  
|Operating Income                                 |  |                                              | 2,797.6 |   |      |  | 30.00  |      |  |   | 3,105.1  |  |  |  | 30.23  |   |  |   | 2,439.7  |   |  |  | 23.08  |  
|Other Income                                     |  |                                              | 259.7   |   |      |  | 2.79   |      |  |   | 261.4    |  |  |  | 2.54   |   |  |   | 199.4    |   |  |  | 1.89   |  
|Other Expenses                                   |  |                                              | 838.5   |   |      |  | 8.99   |      |  |   | 612.2    |  |  |  | 5.96   |   |  |   | 516.0    |   |  |  | 4.88   |  
|                                                 |  |                                              |         |   |      |  |        |      |  |   |          |  |  |  |        |   |  |  
|Income Before Income Taxes and Minority Interest |  |                                              | 2,218.8 |   |      |  | 23.80  |      |  |   | 2,754.3  |  |  |  | 26.81  |   |  |   | 2,123.1  |   |  |  | 20.09  |  
|Income Taxes                                     |  |                                              | 698.5   |   |      |  | 7.49   |      |  |   | 789.0    |  |  |  | 7.68   |   |  |   | 629.7    |   |  |  | 5.96   |  
|Minority Interest                                |  |                                              | (33.1   | ) |      |  | (0.35  | )    |  |   | 0.8      |  |  |  | 0.01   |   |  |   | (1.9     | ) |  |  | (0.02  | )
|                                                 |  |                                              |         |   |      |  |        |      |  |   |          |  |  |  |        |   |  |  
|Net Income                                       |  |                                              | 1,487.2 |   |      |  | 15.96  | %    |  |   | 1,966.1  |  |  |  | 19.14  | % |  |   | 1,491.5  |   |  |  | 14.10  | %
|                                                 |  |                                              |         |   |      |  |        |      |  |   |          |  |  |  |        |   |  |  
|Depreciation and Amortization(2)                 |  | W                                            | 1,435.0 |   |      |  | 15.39  | %    |  | W | 1,510.5  |  |  |  | 14.70  | % |  |   | 1,607.5  |   |  |  | 15.20  | %
|                                                 |  |                                              |         |   |      |  |        |      |  |   |          |  |  |  |        |   |  |  






|    |                                                                                                                                                                                                                                              
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Information for the year ended December 31, 2001 includes
    information for the year ended December 31, 2001 for
    Shinsegi.                                                                                                             
|   
|(2) | Excludes the depreciation and amortization allocated to internal
    research and development costs of Won 108.3 billion,
    Won 135.8 billion and Won 134.1 billion for the years
    ended December 31, 2002, 2003 and 2004, respectively.



| |                      
| | ---------------------
| | 2004 Compared to 2003

Operating Revenue.






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Operating Expenses.
















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Operating Income.


Other Income.


Other Expenses.


Income Tax.


Net Income.




| |                      
| | ---------------------
| | 2003 Compared to 2002

Operating Revenue.










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Operating Expenses.


















Operating Income.


Other Income.


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Other Expenses.


Income Tax.


Net Income.


Liquidity and Capital Resources




| |          
| | ---------
| | Liquidity









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| |                   
| | ------------------
| | Cash Flow Analysis

|                                                          |  |                                      |          |   |        |   |          |      |  |   |              |   |  |              |         |   |  |  |       |    |  |   |         |   |  |  |        |   
|--------------------------------------------------------- |  | ------------------------------------ | -------- | - | ------ | - | -------- | ---- |  | - | ------------ | - |  | ------------ | ------- | - |  |  | ----- | -- |  | - | ------- | - |  |  | ------ | --
|                                                          |  | Year Ended December 31,              |          |   | Change |  
|                                                          |  |                                      |          |   |        |  
|                                                          |  | 2002                                 |          |   | 2003   |   |          | 2004 |  |   | 2002 to 2003 |   |  | 2003 to 2004 |        
|                                                          |  |                                      |          |   |        |   |          |      |  |   |              |   |  |              |        
|                                                          |  | (In billions Won except percentages) |         
|Net Cash Flow from Operating Activities                   |  | W                                    | 4,267.8  |   |        | W | 3,328.8  |      |  | W | 2,516.0      |   |  | W            | (939.0  | ) |  |  | (22.0 | )% |  | W | (812.8  | ) |  |  | (24.4  | )%
|Net Cash Used in Investing Activities                     |  |                                      | (3,063.4 | ) |        |   | (1,414.4 | )    |  |   | (1,469.5     | ) |  |              | 1,649.0 |   |  |  | (53.8 | )% |  |   | (55.1   | ) |  |  | (3.9   | )%
|Net Cash Used in Financing Activities                     |  |                                      | (1,418.2 | ) |        |   | (2,261.0 | )    |  |   | (968.6       | ) |  |              | (842.8  | ) |  |  | 59.4  | %  |  |   | 1,292.4 |   |  |  | 57.2   | % 
|Net Cash Flow due to Changes in Consolidated Subsidiaries |  |                                      | 10.7     |   |        |   | 0.1      |      |  |   | (24.8        | ) |  |              | (10.6   | ) |  |  | (99.1 | )% |  |   | (24.9   | ) |  |  | (249.0 | )%
|                                                          |  |                                      |          |   |        |   |          |      |  |   |              |   |  |              |         |   |  |  |       |    | 
|Increase (Decrease) in Cash and Cash Equivalents          |  | W                                    | (203.2   | ) |        | W | (346.6   | )    |  | W | 53.1         |   |  | W            | 143.4   |   |  |  | 70.6  | %  |  | W | 399.7   |   |  |  | 115.3  | % 
|Cash and Cash Equivalents at Beginning of Period          |  |                                      | 867.3    |   |        |   | 664.1    |      |  |   | 317.5        |   |  |              | (203.2  | ) |  |  | (23.4 | )% |  |   | (346.6  | ) |  |  | (52.2  | )%
|                                                          |  |                                      |          |   |        |   |          |      |  |   |              |   |  |              |         |   |  |  |       |    | 
|Cash and Cash Equivalents at End of Period                |  | W                                    | 664.1    |   |        | W | 317.5    |      |  | W | 370.6        |   |  | W            | (346.6  | ) |  |  | (52.2 | )% |  | W | 53.1    |   |  |  | 16.7   | % 
|                                                          |  |                                      |          |   |        |   |          |      |  |   |              |   |  |              |         |   |  |  |       |    | 

Net Cash Flow from Operating Activities.


Net Cash from Investing Activities.


Net Cash from Financing Activities.






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| |                                   
| | ----------------------------------
| | Capital Requirements and Resources



|                      |       |                                  |       |       |      |   |     |       |  |   |      |       |  |   |     |       | 
|--------------------- | ----- | -------------------------------- | ----- | ----- | ---- | - | --- | ----- |  | - | ---- | ----- |  | - | --- | ----- | 
|                      |       | Year Ended (Ending) December 31, |      
|                      |       |                                  |      
|                      |       | 2002                             |       |       | 2003 |   |     | 2004  |  |   | 2005 |      
|                      |       |                                  |       |       |      |   |     |       |  |   |      |      
|                      |       | (In billions of Won)             |      
|CDMA Network          |       | W                                | 175   |       |      | W | 96  |       |  | W |     |       |  | W |    |      
|CDMA 1xRTT Network(2) |       |                                  | 1,186 |       |      |   | 641 |       |  |   | 728  | (1)   |  |   | 500 | (1)  
|Wireless Data(3)      |       |                                  | 221   |       |      |   | 175 |       |  |   | 92   |       |  |   | 500 |      
|W-CDMA(4)             |       |                                  | 15    |       |      |   | 204 |       |  |   | 220  |       |  |   | 600 |      
|Other(3)(5)           |       |                                  | 428   |       |      |   | 532 |       |  |   | 592  |       |  |   |    |      
|                      |       |                                  |       |       |      |   |     |       |  |   |      |      
|                      | Total |                                  | W     | 2,025 |      |   | W   | 1,648 |  |   | W    | 1,632 |  |   | W   | 1,600 | 
|                      |       |                                  |       |       |      |   |     |       |  |   |      |      






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Our capital expenditures for our CDMA network in 2004 and 2005
    are included in our actual and estimated capital expenditures,
    respectively, for our CDMA 1xRTT network.                                                                                                                                                                                                                                                                                                                              
|   
|(2) | Includes upgrades to CDMA 1xEV/DO Network technology which were
    Won 200 billion for 2002 and Won 36 billion
    for 2003.                                                                                                                                                                                                                                                                                                                                                                                
|   
|(3) | Consists principally of equipment necessary for the provision of
    data services. Our estimated wireless data capital expenditures
    in 2005 include other miscellaneous capital
    expenditures referred to in note (5) below.                                                                                                                                                                                                                                                                       
|   
|(4) | Provision of W-CDMA services commenced on a limited basis in
    Seoul at the end of 2003.                                                                                                                                                                                                                                                                                                                                                                                                                   
|   
|(5) | Other capital expenditure amount includes
    investments in new process and application infrastructure
    consisting of a new customer relationship management system,
    real estate for our headquarters and information technology
    systems. Other capital expenditure amount also
    includes actual capital expenditures of our consolidated
    subsidiaries which were Won 61 billion, Won 37 billion
    and Won 25 billion for 2002, 2003 and 2004, respectively.
    See note (3) above.





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|                         |  |                      |         | 
|------------------------ |  | -------------------- | ------- | 
|Year Ending December 31, |  | Total                |        
|                         |  |                      |        
|                         |  | (In billions of Won) |        
|2005                     |  |                      | 500.0   | 
|2006                     |  |                      | 800.0   | 
|2007                     |  |                      | 700.0   | 
|After 2007               |  |                      | 1,499.0 | 









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Contractual Obligations and Commitments




|                                      |  |                        |         |           |        |   |       |           |       |   |           |  |  |         |         |  |  |   |       | 
|------------------------------------- |  | ---------------------- | ------- | --------- | ------ | - | ----- | --------- | ----- | - | --------- |  |  | ------- | ------- |  |  | - | ----- | 
|                                      |  | Payments Due by Period |        
|                                      |  |                        |        
|                                      |  |                        |         | Less Than |        |   |       |           | After |  
|                                      |  | Total                  |         |           | 1 Year |   |       | 1-3 Years |       |   | 4-5 Years |  |  | 5 Years |        
|                                      |  |                        |         |           |        |   |       |           |       |   |           |  |  |         |        
|                                      |  | (In billions of Won)   |        
|Bonds(1)                              |  | W                      | 3,499.0 |           |        | W | 500.0 |           |       | W | 1,500.0   |  |  | W       | 985.9   |  |  | W | 513.1 | 
|Long-term Borrowings                  |  |                        |        |           |        |   |      |           |       |   |          |  |  |         |        |  |  |   |      | 
|Capital lease Obligations             |  |                        |        |           |        |   |      |           |       |   |          |  |  |         |        |  |  |   |      | 
|Operating Leases                      |  |                        |        |           |        |   |      |           |       |   |          |  |  |         |        |  |  |   |      | 
|Purchase Obligations                  |  |                        |        |           |        |   |      |           |       |   |          |  |  |         |        |  |  |   |      | 
|Other Long-term Payables(2)           |  |                        | 650.0   |           |        |   |      |           |       |   | 90.0      |  |  |         | 240.0   |  |  |   | 320.0 | 
|                                      |  |                        |         |           |        |   |       |           |       |   |           |  |  |         |        
|Total Contractual Cash Obligations(3) |  | W                      | 4,149.0 |           |        | W | 500.0 |           |       | W | 1,590.0   |  |  | W       | 1,225.9 |  |  | W | 833.1 | 
|                                      |  |                        |         |           |        |   |       |           |       |   |           |  |  |         |        

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|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | In March 2004, we issued Won-denominated notes in the principal
    amount of Won 150.0 billion with a maturity of five years
    and an interest rate of 5.0%. In April 2004, we issued notes in
    the principal amount of US$300,000,000 with a maturity of seven
    years and an interest rate of 4.25%. In May 2004, we issued
    Won-denominated notes in the principal amount of Won
    150.0 billion with a maturity of five years and an interest
    rate of 5.0%. The proceeds of the offerings in March and April
    2004 were used to pay maturing debt. The proceeds of the
    offering in May 2004 were used for our operations. In late May
    2004, we sold US$329.5 million in zero coupon convertible
    notes due 2009. We intend to use the proceeds of the zero coupon
    convertible notes for general corporate purposes, including for
    measures to improve shareholders return in their
    investment in our common stock through payment of dividends or
    share repurchase programs.
|   
|(2) | Related to acquisition of IMT license. See note 2(i) of the
    notes to our consolidated financial statements.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|   
|(3) | This amount does not include our future investments in the CDMA
    market in Vietnam through our subsidiary SLD Telecom Pte. Ltd.
    under a business cooperation contract with Saigon
    Post & Telecommunication Service Corporation. See
    Information on the Company  Business
    Overview  Other Investments and Relationships
    and Operating and Financial Review and
    Prospects  Off Balance Sheet Arrangements.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|   
|(4) | See note 2[m] of the notes to our consolidated financial
    statements for the expected payments of severance indemnity
    obligations.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       



Subsequent Note Obligations




| |                                               
| | ----------------------------------------------
| | Unguaranteed Domestic Bonds due March 18, 2010





Inflation




U.S. GAAP Reconciliation






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Significant Changes in Korean GAAP






Critical Accounting Policies, Estimates And Judgments






| |                    
| | -------------------
| | Revenue Recognition







| |                                 
| | --------------------------------
| | Allowances for Doubtful Accounts





| |            
| | -----------
| | Inventories



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| |                                                               
| | --------------------------------------------------------------
| | Estimated Useful Lives and Impairment of Long-lived
    Assets







| |                                    
| | -----------------------------------
| | Impairment of Investment Securities









| |                                        
| | ---------------------------------------
| | Employee Stock Option Compensation Plan





| |             
| | ------------
| | Income Taxes





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Research and development




| |         
| | --------
| | Overview





|                      |  |                              |       |  |      |   |       |      |  |   |       | 
|--------------------- |  | ---------------------------- | ----- |  | ---- | - | ----- | ---- |  | - | ----- | 
|                      |  | As of and For the Year Ended |      
|                      |  | December 31,                 |      
|                      |  |                              |      
|                      |  | 2002                         |       |  | 2003 |   |       | 2004 | 
|                      |  |                              |       |  |      |   |       |      | 
|                      |  | (In billions of Won)         |      
|Internal R&D Expenses |  | W                            | 194.3 |  |      | W | 235.8 |      |  | W | 267.1 | 
|External R&D Expenses |  |                              | 59.0  |  |      |   | 64.4  |      |  |   | 69.0  | 
|                      |  |                              |       |  |      |   |       |      | 
|Total R&D Expenses    |  | W                            | 253.3 |  |      | W | 300.2 |      |  | W | 336.1 | 
|                      |  |                              |       |  |      |   |       |      | 





| |                                  
| | ---------------------------------
| | Internal Research and Development







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| |                                  
| | ---------------------------------
| | External Research and Development



OFF BALANCE SHEET ARRANGEMENTS













Item. 6     Directors, Senior
Management and Employees


DIRECTORS AND SENIOR MANAGEMENT






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|                                        |  |               |  |          |      |  |            |  |      |                 |  |                                                                                    |  |                                         |  |                                                                                                                                                                                                                         
|--------------------------------------- |  | ------------- |  | -------- | ---- |  | ---------- |  | ---- | --------------- |  | ---------------------------------------------------------------------------------- |  | --------------------------------------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                                        |  |               |  |          |      |  |            |  |      | Other Principal |  |                                                                                   
|                                        |  |               |  | Director |      |  | Expiration |  |      |                 |  | Directorships                                                                      |  |                                        
|Name                                    |  | Date of Birth |  | Since    |      |  | of Term    |  |      | Position        |  | and Positions                                                                      |  | Business Experience                    
|                                        |  |               |  |          |      |  |            |  |      |                 |  |                                                                                    |  |                                        
|Jung Nam Cho                            |  | Nov. 20, 1941 |  |          | 1995 |  |            |  | 2007 |                 |  | Vice-Chairman and Representative Director                                          |  |                                         |  | President & COO, SK Telecom                                                                                                                                                                                             
|Shin Bae Kim                            |  | Oct. 15, 1954 |  |          | 2002 |  |            |  | 2008 |                 |  | CEO and Representative Director                                                    |  | Chairman, Korea Association of RFID/USN |  | Head of Strategic Planning Group, Shinsegi Telecomm; Director,
    SK Telecom; Senior Vice President, SK Telecom; Director, KORMS                                                                                       
|Bang Hyung Lee                          |  | Aug. 20, 1955 |  |          | 2005 |  |            |  | 2008 |                 |  | Executive Vice- President, Chief Marketing Officer and Head of
    Business Center |  |                                         |  | Head of Internet Business Group, SK Telecom; Head of Marketing
    Group, SK Telecom; Senior Accountant, Deloitte Haskin &
    Sells, USA                                                                               
|Sung Min Ha                             |  | Mar. 24, 1957 |  |          | 2004 |  |            |  | 2007 |                 |  | Senior Vice President and Chief Financial Officer                                  |  | Representative Director, SK Capital     |  | Head of Strategic Planning Group, SK Telecom; Director, SK
    Telink; Auditor, SK C&C; Chairman and Representative
    Director, SLD Telecom; Auditor, SK Teletech                                                     
|Our current non-standing directors are: |  |               |  |          |      | 
|Sang Koo Nam                            |  | Aug. 20, 1946 |  |          | 1998 |  |            |  | 2007 |                 |  | Outside Director                                                                   |  | Professor, Korea University             |  | University of Pennsylvania, MBA (1975), Ph.D. (1981); President,
    Korean Financial Association                                                                                                                       
|Sang C. Lee                             |  | Jan. 24, 1941 |  |          | 1999 |  |            |  | 2008 |                 |  | Outside Director                                                                   |  | IT Consultant                           |  | Chairman, Communication Network Interface, Inc.; Chairman and
    CEO, Spectron Corp., President, Scovill Fasteners, Inc.;
    Director of Organization, ITT Worldwide Corp.; Vice President,
    ITT Asia Pacific Corp.

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|                |  |               |  |          |      |  |            |  |      |                 |  |                  |  |                                                                                                                    |  |                                                                                                                                                                 
|--------------- |  | ------------- |  | -------- | ---- |  | ---------- |  | ---- | --------------- |  | ---------------- |  | ------------------------------------------------------------------------------------------------------------------ |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------
|                |  |               |  |          |      |  |            |  |      | Other Principal |  |                 
|                |  |               |  | Director |      |  | Expiration |  |      |                 |  | Directorships    |  |                                                                                                                   
|Name            |  | Date of Birth |  | Since    |      |  | of Term    |  |      | Position        |  | and Positions    |  | Business Experience                                                                                               
|                |  |               |  |          |      |  |            |  |      |                 |  |                  |  |                                                                                                                   
|Jae Seung Yoon  |  | Nov. 9, 1962  |  |          | 2002 |  |            |  | 2008 |                 |  | Outside Director |  | CEO & Representative Director; Daewoong Pharmaceutical
    Co., Ltd.; Vice-president, Insung Information Co., Ltd. |  | Public Prosecutor, The Seoul/Busan District Public
    Prosecutors Office; Auditor and Vice President, Daewoong
    Pharmaceutical Co., Ltd.                   
|Yong Woon Kim   |  | Oct. 4, 1943  |  |          | 2003 |  |            |  | 2006 |                 |  | Outside Director |  | Non-Standing Auditor, Pohang University of Science and Technology                                                  |  | Senior Executive Vice President (Legal Department, Seoul Office,
    Investment and Finance) and Director, POSCO; Standing Advisor,
    POSCO Research Institute
|Dae Sik Kim     |  | Jan. 11, 1955 |  |          | 2005 |  |            |  | 2008 |                 |  | Outside Director |  | Professor, Hanyang University; Committee Member, MOFE Advisory
    Committee on Financial Development              |  | University of Pennsylvania, MBA (1981), Ph.D. (1987)                                                                                                            
|Dae Kyu Byun    |  | Mar. 8, 1960  |  |          | 2005 |  |            |  | 2008 |                 |  | Outside Director |  | CEO & Representative Director, Humax Co., Ltd.; Head
    Vice- President, Korea Venture Business Association       |  | Director, the Federation of Korea Information Industries;
    Representative Director, Guin Co.; Co-founder, Venture Leaders
    Club                           
|Seung Taik Yang |  | Oct. 24, 1939 |  |          | 2005 |  |            |  | 2008 |                 |  | Outside Director |  | President, Tong-Myung University of Information Technology                                                         |  | Polytechnic Institute of Brooklyn, Ph.D.; 7th Minister,
    Ministry of Information and Communication                                                           

INVOLVEMENT IN CERTAIN LEGAL PROCEEDINGS




COMPENSATION OF DIRECTORS AND OFFICERS




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|                |       |          |                  |                  |      |  |           |        |  |  |      |   |  |           |   |   |  |  |   |   | 
|--------------- | ----- | -------- | ---------------- | ---------------- | ---- |  | --------- | ------ |  |  | ---- | - |  | --------- | - | - |  |  | - | - | 
|                |       |          |                  | Number of Shares |      |  |          
|                |       |          |                  | Allotted         |      |  | Number of |       
|                |       |          |                  |                  |      |  | Options   |       
|Name            |       | Position |                  |                  | 2002 |  |           | 2003   |  |  | 2004 |   |  | Exercised |  
|                |       |          |                  |                  |      |  |           |        |  |  |      |   |  |           |  
|Jung Nam Cho    |       |          | Director         |                  |      |  | 6,150     |        |  |  | 0    |   |  |           | 0 |   |  |  | 0 |  
|Shin Bae Kim    |       |          | Director         |                  |      |  | 1,650     |        |  |  | 0    |   |  |           | 0 |   |  |  | 0 |  
|Bang Hyung Lee  |       |          | Director         |                  |      |  | 1,620     |        |  |  | 0    |   |  |           | 0 |   |  |  | 0 |  
|Sung Min Ha     |       |          | Director         |                  |      |  | 690       |        |  |  | 0    |   |  |           | 0 |   |  |  | 0 |  
|Sang Koo Nam    |       |          | Outside Director |                  |      |  | 1,000     |        |  |  | 0    |   |  |           | 0 |   |  |  | 0 |  
|Sang C. Lee     |       |          | Outside Director |                  |      |  | 1,000     |        |  |  | 0    |   |  |           | 0 |   |  |  | 0 |  
|Jae Seung Yoon  |       |          | Outside Director |                  |      |  | 1,000     |        |  |  | 0    |   |  |           | 0 |   |  |  | 0 |  
|Dae Kyu Byun    |       |          | Outside Director |                  |      |  | 1,000     |        |  |  | 0    |   |  |           | 0 |   |  |  | 0 |  
|Seung Taik Yang |       |          | Outside Director |                  |      |  | 0         |        |  |  | 0    |   |  |           | 0 |   |  |  | 0 |  
|Dae Sik Kim     |       |          | Outside Director |                  |      |  | 1,000     |        |  |  | 0    |   |  |           | 0 |   |  |  | 0 |  
|Yong Woon Kim   |       |          | Outside Director |                  |      |  | 0         |        |  |  | 0    |   |  |           | 0 |   |  |  | 0 |  
|Other Officers  |       |          |                  |                  |      |  | 49,620    |        |  |  | 0    |   |  |           | 0 |   |  |  | 0 |  
|                |       |          |                  |                  |      |  |           |        |  |  |      |   |  |           |  
|                | Total |          |                  |                  |      |  |           | 65,730 |  |  |      | 0 |  |           |   | 0 |  |  |   | 0 | 
|                |       |          |                  |                  |      |  |           |        |  |  |      |   |  |           |  

BOARD PRACTICES


Termination of Directors, Services




Audit Committee




80



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| |   |                                                                                                                                     
| | - | ------------------------------------------------------------------------------------------------------------------------------------
| |  | examine the agenda for the general meeting of shareholders;                                                                         
|
| |  | examine financial statements and other reports to be submitted
    by the board of directors to the general meeting of shareholders;
|
| |  | review the administration by the board of directors of our
    affairs; and                                                         
|
| |  | examine the operations and asset status of us and our
    subsidiaries.                                                             





Outside Director Nomination Committee






Capex review committee




Compensation review committee




Remuneration




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Differences in Corporate Governance Practices




|                                                                                                                                                                      |  |                                                                                                                                                                                                                                                                                                                                                                                                                                          
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|NYSE Corporate Governance Standards                                                                                                                                   |  | SK Telecom Corporate Governance Practice                                                                                                                                                                                                                                                                                                                                                                                                 
|                                                                                                                                                                      |  |                                                                                                                                                                                                                                                                                                                                                                                                                                          
|                                                                                                                                                                     
|Director Independence                                                                                                                                                 |  |                                                                                                                                                                                                                                                                                                                                                                                                                                          
|                                                                                                                                                                     
|Listed companies must have a majority of independent directors.                                                                                                       |  | Of the 11 members of our board of directors, 7 of them are
    independent directors.                                                                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                     
|Executive Session                                                                                                                                                     |  |                                                                                                                                                                                                                                                                                                                                                                                                                                          
|                                                                                                                                                                     
|Listed companies must hold meetings solely attended by
    non-management directors to more effectively check and balance
    management directors.                   |  | Our Audit Committee comprising solely of three members of our
    independent directors holds meetings whenever there are matters
    related to management directors, and such meetings are generally
    held once every month.                                                                                                                                                                                                        
|                                                                                                                                                                     
|Nomination/ Corporate Governance Committee                                                                                                                            |  |                                                                                                                                                                                                                                                                                                                                                                                                                                          
|                                                                                                                                                                     
|Listed companies must have a nomination/corporate governance
    committee composed entirely of independent directors.                                                |  | Although we do not have a separate nomination/ corporate
    governance committee, we maintain an Independent Director
    Recommendation Committee composed of independent directors and
    management directors.                                                                                                                                                                                                                      
|                                                                                                                                                                     
|Audit Committee                                                                                                                                                       |  |                                                                                                                                                                                                                                                                                                                                                                                                                                          
|                                                                                                                                                                     
|Listed companies must have an audit committee that satisfied the
    requirements of Rule 10A-3 under the Exchange Act.                                               |  | We maintain an Audit Committee comprised solely of three
    independent directors.                                                                                                                                                                                                                                                                                                                                                      
|                                                                                                                                                                     
|Audit committee additional requirements                                                                                                                               |  |                                                                                                                                                                                                                                                                                                                                                                                                                                          
|                                                                                                                                                                     
|Listed companies must have an audit committee that is composed
    of more than three directors.                                                                      |  | Our Audit Committee has three independent directors.                                                                                                                                                                                                                                                                                                                                                                                     
|Shareholder Approval of Equity Compensation Plan                                                                                                                     
|                                                                                                                                                                     
|Listed companies must allow its shareholders to exercise their
    voting rights with respect to any material revision to the
    companys equity compensation plan. |  | We currently have two equity compensation plans. A stock option
    plan for officers and directors and employee stock ownership
    plan for employees (ESOP). Our Articles of
    Incorporation provides for all the relevant matters relating to
    such compensation scheme, amendment of which is subject to
    shareholders approval while the matters relating to ESOP
    are not subject to such approval under Korean law.
|                                                                                                                                                                     
|Corporate Governance Guidelines                                                                                                                                       |  |                                                                                                                                                                                                                                                                                                                                                                                                                                          
|                                                                                                                                                                     
|Listed companies must adopt and disclose corporate governance
    guidelines.                                                                                         |  | Although we do not maintain separate corporate governance
    guidelines, we are in compliance with the Korean Commercial Law
    in connection with such matter, including the governance of the
    board of directors.                                                                                                                                                                                                                

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|                                                                                                                                                                                                                     |  |                                                                                                                                                                                    
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|NYSE Corporate Governance Standards                                                                                                                                                                                  |  | SK Telecom Corporate Governance Practice                                                                                                                                           
|                                                                                                                                                                                                                     |  |                                                                                                                                                                                    
|Code of Business Conduct and Ethics                                                                                                                                                                                  |  |                                                                                                                                                                                    
|                                                                                                                                                                                                                    
|Listed companies must adopt and disclose a code of business
    conduct and ethics for directors, officers and employees, and
    promptly disclose any waivers of the code for directors or
    executive officers. |  | We have adopted a Code of Business Conduct and Ethics for all of
    our directors, officers and employees and such code is also
    available on our website at www.sktelecom.com.

EMPLOYEES




|                     |  |           |       |  |           |  |       |       |  |  |       | 
|-------------------- |  | --------- | ----- |  | --------- |  | ----- | ----- |  |  | ----- | 
|                     |  | Regular   |       |  | Temporary |  |       |      
|                     |  | Employees |       |  | Employees |  |       | Total | 
|                     |  |           |       |  |           |  |       |       | 
|December 31, 2002    |  |           | 4,641 |  |           |  | 1,600 |       |  |  | 6,241 | 
|December 31, 2003    |  |           | 5,447 |  |           |  | 1,474 |       |  |  | 6,921 | 
|December 31, 2004    |  |           | 6,421 |  |           |  | 932   |       |  |  | 7,353 | 
|As of April 30, 2005 |  |           | 7,111 |  |           |  | 951   |       |  |  | 8,062 | 





|                    |  |           |       |  |            |  |       |          |  |  |         |  |  |              |       |  |       |  |     |  |  |  |       | 
|------------------- |  | --------- | ----- |  | ---------- |  | ----- | -------- |  |  | ------- |  |  | ------------ | ----- |  | ----- |  | --- |  |  |  | ----- | 
|                    |  | Marketing |       |  | Production |  |       | Research |  |  | Support |  |  | New Business |       |  | Total | 
|                    |  |           |       |  |            |  |       |          |  |  |         |  |  |              |       |  |       | 
|Regular Employees   |  |           | 2,282 |  |            |  | 1,873 |          |  |  | 1,135   |  |  |              | 1,105 |  |       |  | 716 |  |  |  | 7,111 | 
|Temporary Employees |  |           | 623   |  |            |  | 139   |          |  |  | 29      |  |  |              | 146   |  |       |  | 14  |  |  |  | 951   | 
|                    |  |           |       |  |            |  |       |          |  |  |         |  |  |              |       |  |       | 
|Total               |  |           | 2,905 |  |            |  | 2,012 |          |  |  | 1,164   |  |  |              | 1,251 |  |       |  | 730 |  |  |  | 8,062 | 
|                    |  |           |       |  |            |  |       |          |  |  |         |  |  |              |       |  |       | 







83



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SHARE OWNERSHIP




|                       |  |                                                                             |  |           |       |  |               |  |   |         |  |  |         |  |  |  |        | 
|---------------------- |  | --------------------------------------------------------------------------- |  | --------- | ----- |  | ------------- |  | - | ------- |  |  | ------- |  |  |  | ------ | 
|                       |  |                                                                             |  | Number of |       |  | Percentage of |  |   | Special |  |  |        
|                       |  |                                                                             |  | Shares    |       |  | Total Shares  |  |   | Voting  |  |  |        
|Name                   |  | Position                                                                    |  | Owned     |       |  | Outstanding   |  |   | Rights  |  |  | Options | 
|                       |  |                                                                             |  |           |       |  |               |  |   |         |  |  |         | 
|Standing Directors     |  |                                                                             |  |           |       |  |               |  |   |         |  |  |         |  |  |  |        | 
|Jung Nam Cho           |  | Vice-Chairman and Representative Director                                   |  |           |      |  |               |  |  |         |  |  | None    |  |  |  | 16,500 | 
|Shin Bae Kim           |  | CEO and Representative Director                                             |  |           | 1,270 |  |               |  |  |         |  |  | None    |  |  |  | 1,650  | 
|Bang Hyung Lee         |  | Executive Vice-President                                                    |  |           | 1,630 |  |               |  |  |         |  |  | None    |  |  |  | 3,390  | 
|Sung Min Ha            |  | Chief Financial Officer and Head of Strategic Planning
    Divisional Group |  |           | 738   |  |               |  |  |         |  |  | None    |  |  |  | 690    | 
|Non-Standing Directors |  |                                                                             |  |           |       |  |               |  |   |         |  |  |         |  |  |  |        | 
|Sang Koo Nam           |  | Outside Director                                                            |  |           |      |  |               |  |  |         |  |  | None    |  |  |  | 2,500  | 
|Sang C. Lee            |  | Outside Director                                                            |  |           |      |  |               |  |  |         |  |  | None    |  |  |  | 2,500  | 
|Jae Seung Yoon         |  | Outside Director                                                            |  |           | 200   |  |               |  |  | *       |  |  | None    |  |  |  | 1,000  | 
|Dae Sik Kim            |  | Outside Director                                                            |  |           |      |  |               |  |  |         |  |  | None    |  |  |  | 2,000  | 
|Dae Kyu Byun           |  | Outside Director                                                            |  |           |      |  |               |  |  |         |  |  | None    |  |  |  | 2,000  | 
|Seung Taik Yang        |  | Outside Director                                                            |  |           |      |  |               |  |  |         |  |  | None    |  |  |  |       | 
|Yong Woon Kim          |  | Outside Director                                                            |  |           |      |  |               |  |  |         |  |  | None    |  |  |  | 0      | 






|  |               
|- | --------------
|* | Less than 1.0%




Item. 7     Major Shareholders
and Related Party Transactions


MAJOR SHAREHOLDERS




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|                        |                             |           |            |            |              |  |            |              |   |  |       |        |  
|----------------------- | --------------------------- | --------- | ---------- | ---------- | ------------ |  | ---------- | ------------ | - |  | ----- | ------ | -
|                        |                             |           |            | Percentage |              |  | Percentage |             
|                        |                             | Number of |            |            | Total Shares |  |            | Total Shares |  
|Shareholder/Category    |                             | Shares    |            |            | Issued       |  |            | Outstanding  |  
|                        |                             |           |            |            |              |  |            |              |  
|Domestic Shareholders   |                             |           |            |            |              |  |            |              |   |  |       |       
|                        | SK Group(1)                 |           |            | 19,772,914 |              |  |            | 24.03        | % |  |       | 26,86  | %
|                        | POSCO                       |           |            | 4,098,496  |              |  |            | 4.98         |   |  |       | 5.57   |  
|                        | Employees(2)                |           |            | 480,586    |              |  |            | 0.58         |   |  |       | 0.65   |  
|                        | Treasury shares(3)          |           |            | 8,662,415  |              |  |            | 10.53        |   |  |       | N/A    |  
|                        | Officers and Directors(4)   |           |            | 2,608      |              |  |            |             |   |  |       |       |  
|                        | Other Domestic Shareholders |           |            | 9,467,103  |              |  |            | 11.52        |   |  |       | 13.76  |  
|Foreign Shareholders(5) |                             |           | 39,792,589 |            |              |  | 48.36      | %            |   |  | 54.06 | %     
|                        |                             |           |            |            |              |  |            |              |  
|                        | Total Issued Shares         |           |            | 82,276,711 |              |  |            | 100.00       | % |  |       | 100.00 | %
|                        |                             |           |            |            |              |  |            |              |  






|    |                                                                                         
|--- | ----------------------------------------------------------------------------------------
|(1) | The SK Groups ownership interest consists of the
    following as of December 31, 2004:

|                            |  |           |            |            |              |  |            |              |  |  |       |  
|--------------------------- |  | --------- | ---------- | ---------- | ------------ |  | ---------- | ------------ |  |  | ----- | -
|                            |  |           |            | Percentage |              |  | Percentage |             
|                            |  | Number of |            |            | Total Shares |  |            | Total Shares | 
|SK Group Member             |  | Shares    |            |            | Issued       |  |            | Outstanding  | 
|                            |  |           |            |            |              |  |            |              | 
|SK Corporation              |  |           | 17,663,127 |            |              |  | 21.47      | %            |  |  | 23.99 | %
|SK Securities Co., Ltd.     |  |           | 7          |            |              |  | 0.00       |              |  |  | 0.00  |  
|SK Networks*                |  |           | 2,097,740  |            |              |  | 2.55       |              |  |  | 2.85  |  
|SK Life Insurance Co., Ltd. |  |           | 12,040     |            |              |  | 0.01       |              |  |  | 0.02  |  
|                            |  |           |            |            |              |  |            |              | 
|                            |  |           | 19,772,914 |            |              |  | 24.03      | %            |  |  | 26.86 | %
|                            |  |           |            |            |              |  |            |              | 






| |   |                                                                                         
| | - | ----------------------------------------------------------------------------------------
| | * | SK Networks sold 418,000 shares in January 2004 and
    currently owns 2,097,740 shares.



| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | The SK Group is a group of affiliated entities. As of
    December 31, 2004, the ownership interest among the
    SK Group were, among others: SK Corporation owned
    21.47% of SK Telecom Co., Ltd., 41.32% of SK Networks,
    47.27% of SKC and 72.13% of SK Shipping Co., Ltd.
    SK Networks owned 2.55% of SK Telecom Co., Ltd.,
    17.71% of SK Shipping, 15% of SK Computer &
    Communications Co., Ltd., and 28.95% of SK Securities Co.,
    Ltd. SK Chemicals owned 2.39% of SK Corporation,
    39.40% of SK Engineering and Construction. SKC owns 6.2% of
    SK Chemicals and 10.16% of SK Shipping Co., Ltd.
    SK Shipping Co., Ltd. owns 30.94% of SK Engineering
    and Construction. SK Computer & Communications
    Co., Ltd. owns 11.22% of SK Corporation. We own 30.0% of
    SK Computer & Communications Co., Ltd.



|    |                                                                                                                                                                                                                                                                                                                
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(2) | Represents shares owned by our employee stock ownership
    association. See Information on the Company 
    Employees.                                                                                                                                                                                     
|   
|(3) | Treasury shares do not have any voting rights; Includes
    1,710,750 treasury shares that were deposited with Korea
    Securities Depository to be reserved and used to satisfy the
    conversion rights of the holders of US$329.5 million in
    zero coupon convertible notes that were sold in May 2004.
|   
|(4) | Less than 0.01%.                                                                                                                                                                                                                                                                                               
|   
|(5) | Includes 5,445,282 shares of our common stock or
    approximately 6.62% of our issued common stock, represented by
    American Depositary Shares (ADSs) held by Momenta (Cayman), a
    special purpose vehicle incorporated in the Cayman Islands.                                                          

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|                  |                                |                           |       |       |      |  |       |       |  |  |       |       | 
|----------------- | ------------------------------ | ------------------------- | ----- | ----- | ---- |  | ----- | ----- |  |  | ----- | ----- | 
|                  |                                | As of December 31,        |      
|                  |                                |                           |      
|Shareholder       |                                | 2002                      |       |       | 2003 |  |       | 2004  | 
|                  |                                |                           |       |       |      |  |       |       | 
|                  |                                | (As a percentage of total |      
|                  |                                | issued shares)(1)         |      
|SK Group          |                                |                           | 24.43 | %     |      |  | 24.60 | %     |  |  | 24.03 | %    
|                  | SK Corporation(2)              |                           |       | 19.81 |      |  |       | 21.47 |  |  |       | 21.47 | 
|                  | SK Life Insurance              |                           |       | 0.00  |      |  |       | 0.01  |  |  |       | 0.01  | 
|                  | SK Investment Trust Management |                           |       | 0.07  |      |  |       | 0.06  |  |  |       |      | 
|                  | SK Networks(3)                 |                           |       | 4.53  |      |  |       | 3.06  |  |  |       | 2.55  | 
|KT Corporation(4) |                                |                           | 9.27  |       |      |  | 0.00  |       |  |  | 0.00  |      
|POSCO(5)          |                                |                           | 6.50  |       |      |  | 4.98  |       |  |  | 4.98  |      






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Includes shares held in treasury of 4,852,972, 8,662,403 and
    8,662,415 as of December 31, 2002, 2003 and 2004,
    respectively. The treasury share amount as of December 31,
    2002 excludes 4,465,635 shares of the Companys common
    stock acquired from KT Corporation pursuant to a stock swap on
    December 30, 2002.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|   
|(2) | On July 25, 2002, SK Corporation sold our ADSs representing
    5,117,500 shares of our common stock to Momenta (Cayman),
    which in turn sold bonds exchangeable initially into such ADSs.
    On the same day, SK Corporation sold 1,122,223 shares
    of our common stock represented by ADRs to foreign investors.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|   
|(3) | On January 4, 2002, SK Networks issued bonds exchangeable
    into an aggregate of 1,730,104 shares of our common stock.
    On January 31, 2002, bank trust funds controlled by us
    purchased from SK Networks an aggregate of 1,367,180 shares
    of our common stock, or approximately 1.5% of our outstanding
    common stock. On July 25, 2002, SK Networks sold
    1,100,000 shares of our common stock represented by ADRs to
    foreign investors. SK Networks sold 418,000 shares in
    January 2004 and currently owns 2,097,740 shares.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|   
|(4) | On April 15, 2002, KT Corporation sold an aggregate of
    1,000,000 shares, or approximately 1.1%, of our outstanding
    common stock to investors. On December 30, 2002,
    KT Corporation sold an aggregate of 4,457,635 shares,
    on approximately 5.0%, of our outstanding common stock to us. On
    January 10, 2003, KT Corporation sold its remaining
    stake in us, an aggregate of 3,809,288 shares, or
    approximately 4.3%, of our outstanding common stock to us. On
    May 23, 2002, we acquired a 9.6% equity interest
    (29,808,333 shares of common stock) in KT Corporation for
    Won 1,609 billion. Pursuant to the terms of an
    agreement between us and KT Corporation dated November 14,
    2002, we sold all of our shares of KT Corporation. Under
    the terms of the agreement, we exchanged 29,808,333 shares
    of KT Corporations common stock for 8,266,923 shares
    of our common stock and settled the difference in the price in
    cash on December 30, 2002 and January 10, 2003. The
    exchange was made at Won 50,900 per share of
    KT Corporations common stock and
    Won 224,000 per share of our common stock.
|   
|(5) | POSCO acquired these shares in connection with our acquisition
    of a 27.7% equity interest in Shinsegi.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            







86



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87



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CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS


SK Networks






| |   |                                                                                                                                                                                                                                                                                                     
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | A series of real property sale and purchase contracts in
    November 2000 pursuant to which we purchased from SK Networks
    the building and land where our new corporate headquarters is
    located. The aggregate purchase price was
    Won 114.4 billion; and                               
|
| |  | A series of sale and purchase agreements pursuant to which we
    and our subsidiary, SK Teletech, sell handsets to SK Networks.
    The aggregate sales to SK Networks pursuant to these contracts
    were Won 381.9 billion in 2002, Won 481.2 billion
    in 2003 and Won 581.6 billion in 2004.







Other Related Parties






88



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Item. 8     Financial
Information


CONSOLIDATED STATEMENTS AND OTHER FINANCIAL INFORMATION




LEGAL PROCEEDINGS


FTC Proceedings






89



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MIC Proceedings














90



---



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91



---



##### Table of Contents



Former Shinsegi Shareholders Litigation




GNI Enterprise Litigation




Multinet Litigation






Coloring Litigation




92



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DIVIDENDS








|                        |  |           |        |  |                      |                  |       |             |  |  |            | 
|----------------------- |  | --------- | ------ |  | -------------------- | ---------------- | ----- | ----------- |  |  | ---------- | 
|                        |  |           |        |  |                      | Number of Shares |      
|                        |  | Dividend  |        |  | Total Amount of      |                  |       | Entitled to | 
|Year Ended December 31, |  | Per Share |        |  | Dividends            |                  |       | Dividend    | 
|                        |  |           |        |  |                      |                  |       |             | 
|                        |  | (In Won)  |        |  | (In billions of Won) |                  |       |            
|1997                    |  | W         | 90     |  |                      | W                | 5.6   |             |  |  | 62,169,720 | 
|1998                    |  |           | 118    |  |                      |                  | 7.6   |             |  |  | 64,258,670 | 
|1999                    |  |           | 185    |  |                      |                  | 15.4  |             |  |  | 83,284,110 | 
|2000                    |  |           | 540    |  |                      |                  | 48.1  |             |  |  | 89,079,034 | 
|2001                    |  |           | 690    |  |                      |                  | 57.3  |             |  |  | 82,993,404 | 
|2002                    |  |           | 1,800  |  |                      |                  | 151.7 |             |  |  | 84,299,698 | 
|2003                    |  |           | 5,500  |  |                      |                  | 404.9 |             |  |  | 73,614,308 | 
|2004                    |  |           | 10,300 |  |                      |                  | 758.2 |             |  |  | 73,614,296 | 






|    |                                                                                                                                                                                                  
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Dividend per share and amount of shares entitled to dividend
    have been adjusted to give effect to the 10-for-1 stock split of
    our common shares which became effective on April 21, 2000.







93



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Item. 9     The Offer and
Listing


MARKET PRICE INFORMATION






94



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Shares of Common Stock




|                      |                                 |                      |         |                    |               |  |         |         |         |  |                |         |         |  |         |         |         | 
|--------------------- | ------------------------------- | -------------------- | ------- | ------------------ | ------------- |  | ------- | ------- | ------- |  | -------------- | ------- | ------- |  | ------- | ------- | ------- | 
|                      |                                 | Prices(1)            |         |                    |              
|                      |                                 |                      |         |                    | Average Daily | 
|Calendar Year         |                                 | High(2)              |         |                    | Low(2)        |  |         | Close   |         |  | Trading Volume |        
|                      |                                 |                      |         |                    |               |  |         |         |         |  |                |        
|                      |                                 |                      |         | (Number of shares) |              
|                      |                                 | (Won per share)      |         |                    |              
|2000                  |                                 |                      | 481,000 |                    |               |  | 216,000 |         |         |  | 253,000        |         |         |  | 262,660 |        
|                      | First Quarter                   |                      |         | 481,000            |               |  |         | 323,000 |         |  |                | 360,000 |         |  |         | 238,762 |        
|                      | Second Quarter                  |                      |         | 406,000            |               |  |         | 263,500 |         |  |                | 365,000 |         |  |         | 311,828 |        
|                      | Third Quarter                   |                      |         | 379,000            |               |  |         | 216,000 |         |  |                | 272,000 |         |  |         | 239,913 |        
|                      | Fourth Quarter                  |                      |         | 288,000            |               |  |         | 230,000 |         |  |                | 253,000 |         |  |         | 261,753 |        
|2001                  |                                 |                      | 295,000 |                    |               |  | 165,000 |         |         |  | 268,000        |         |         |  | 242,254 |        
|                      | First Quarter                   |                      |         | 293,500            |               |  |         | 182,000 |         |  |                | 183,000 |         |  |         | 253,393 |        
|                      | Second Quarter                  |                      |         | 235,500            |               |  |         | 165,000 |         |  |                | 191,500 |         |  |         | 312,070 |        
|                      | Third Quarter                   |                      |         | 233,000            |               |  |         | 184,500 |         |  |                | 208,000 |         |  |         | 154,785 |        
|                      | Fourth Quarter                  |                      |         | 295,000            |               |  |         | 220,000 |         |  |                | 268,000 |         |  |         | 250,676 |        
|2002                  |                                 |                      | 299,000 |                    |               |  | 209,500 |         |         |  | 229,000        |         |         |  | 261,482 |        
|                      | First Quarter                   |                      |         | 299,000            |               |  |         | 242,000 |         |  |                | 290,000 |         |  |         | 263,168 |        
|                      | Second Quarter                  |                      |         | 292,000            |               |  |         | 239,000 |         |  |                | 269,500 |         |  |         | 227,115 |        
|                      | Third Quarter                   |                      |         | 279,500            |               |  |         | 209.500 |         |  |                | 237,000 |         |  |         | 241,154 |        
|                      | Fourth Quarter                  |                      |         | 252,500            |               |  |         | 220,000 |         |  |                | 229,000 |         |  |         | 314,019 |        
|2003                  |                                 |                      | 235,000 |                    |               |  | 142,000 |         |         |  | 199,000        |         |         |  | 327,689 |        
|                      | First Quarter                   |                      |         | 235,000            |               |  |         | 142,000 |         |  |                | 153,000 |         |  |         | 497,115 |        
|                      | Second Quarter                  |                      |         | 210,000            |               |  |         | 157,500 |         |  |                | 204,000 |         |  |         | 298,346 |        
|                      | Third Quarter                   |                      |         | 216,000            |               |  |         | 183,000 |         |  |                | 184,000 |         |  |         | 267,821 |        
|                      | Fourth Quarter                  |                      |         | 212,500            |               |  |         | 185,000 |         |  |                | 199,000 |         |  |         | 247,332 |        
|2004                  |                                 |                      | 238,500 |                    |               |  | 154,500 |         |         |  | 197,000        |         |         |  | 179,712 |        
|                      | First Quarter                   |                      |         | 238,500            |               |  |         | 207,500 |         |  |                | 214,500 |         |  |         | 243,681 |        
|                      | Second Quarter                  |                      |         | 213,000            |               |  |         | 179,000 |         |  |                | 190,000 |         |  |         | 188,095 |        
|                      | Third Quarter                   |                      |         | 186,000            |               |  |         | 154,500 |         |  |                | 175,500 |         |  |         | 137,559 |        
|                      | Fourth Quarter                  |                      |         | 205,000            |               |  |         | 174,500 |         |  |                | 197,000 |         |  |         | 151,903 |        
|2005 (through May 24) |                                 |                      | 200,500 |                    |               |  | 163,500 |         |         |  | 176,000        |         |         |  | 173,530 |        
|                      | First Quarter                   |                      |         | 200,500            |               |  |         | 171,000 |         |  |                | 171,000 |         |  |         | 202,857 |        
|                      |                                 | January              |         |                    | 200,500       |  |         |         | 179,000 |  |                |         | 179,000 |  |         |         | 175,817 | 
|                      |                                 | February             |         |                    | 184,000       |  |         |         | 176,500 |  |                |         | 181,000 |  |         |         | 266,888 | 
|                      |                                 | March                |         |                    | 184,500       |  |         |         | 171,000 |  |                |         | 171,000 |  |         |         | 179,188 | 
|                      | Second Quarter (through May 24) |                      |         | 176,500            |               |  |         | 163,500 |         |  |                | 176,000 |         |  |         | 124,651 |        
|                      |                                 | April                |         |                    | 172,000       |  |         |         | 163,500 |  |                |         | 163,500 |  |         |         | 148,913 | 
|                      |                                 | May (through May 24) |         |                    | 176,500       |  |         |         | 168,000 |  |                |         | 176,000 |  |         |         | 94,324  | 








|    |                                                                                                                                                                                                                 
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | The price give effect to the 10-for-1 stock split of our common
    shares which became effective on April 21, 2000 and
    resulted in the par value of each share being reduced from
    Won 5,000 to Won 500.
|   
|(2) | Both high and low prices are based on the daily closing prices
    for the period.                                                                                                                              

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American Depositary Shares




|                      |                                 |                      |       |               |               |  |       |       |                  |  |                |       |       |  |         |           |         | 
|--------------------- | ------------------------------- | -------------------- | ----- | ------------- | ------------- |  | ----- | ----- | ---------------- |  | -------------- | ----- | ----- |  | ------- | --------- | ------- | 
|                      |                                 | Prices(1)            |       |               |              
|                      |                                 |                      |       |               | Average Daily | 
|                      |                                 | High(2)              |       |               | Low(2)        |  |       | Close |                  |  | Trading Volume |      
|                      |                                 |                      |       |               |               |  |       |       |                  |  |                |      
|                      |                                 |                      |       | (US$ per ADS) |               |  |       |       | (Number of ADSs) | 
|2000                  |                                 |                      | 50.69 |               |               |  | 20.56 |       |                  |  | 23.56          |       |       |  | 832,301 |          
|                      | First Quarter                   |                      |       | 50.69         |               |  |       | 33.50 |                  |  |                | 39.00 |       |  |         | 964,229   |        
|                      | Second Quarter                  |                      |       | 43.31         |               |  |       | 28.25 |                  |  |                | 36.31 |       |  |         | 781,578   |        
|                      | Third Quarter                   |                      |       | 43.44         |               |  |       | 20.56 |                  |  |                | 25.63 |       |  |         | 810,021   |        
|                      | Fourth Quarter                  |                      |       | 28.19         |               |  |       | 21.31 |                  |  |                | 23.56 |       |  |         | 773,376   |        
|2001                  |                                 |                      | 28.94 |               |               |  | 13.50 |       |                  |  | 21.62          |       |       |  | 710,410 |          
|                      | First Quarter                   |                      |       | 28.94         |               |  |       | 15.18 |                  |  |                | 15.18 |       |  |         | 743,602   |        
|                      | Second Quarter                  |                      |       | 21.05         |               |  |       | 13.50 |                  |  |                | 16.90 |       |  |         | 817,532   |        
|                      | Third Quarter                   |                      |       | 20.21         |               |  |       | 16.15 |                  |  |                | 18.44 |       |  |         | 655,302   |        
|                      | Fourth Quarter                  |                      |       | 25.29         |               |  |       | 18.26 |                  |  |                | 21.62 |       |  |         | 623,611   |        
|2002                  |                                 |                      | 26.75 |               |               |  | 19.25 |       |                  |  | 21.35          |       |       |  | 684,421 |          
|                      | First Quarter                   |                      |       | 24.70         |               |  |       | 20.30 |                  |  |                | 24.60 |       |  |         | 488,958   |        
|                      | Second Quarter                  |                      |       | 26.75         |               |  |       | 20.20 |                  |  |                | 24.40 |       |  |         | 555,865   |        
|                      | Third Quarter                   |                      |       | 26.36         |               |  |       | 19.25 |                  |  |                | 21.23 |       |  |         | 963,578   |        
|                      | Fourth Quarter                  |                      |       | 22.81         |               |  |       | 19.30 |                  |  |                | 21.35 |       |  |         | 717,859   |        
|2003                  |                                 |                      | 21.85 |               |               |  | 12.83 |       |                  |  | 18.65          |       |       |  | 743,316 |          
|                      | First Quarter                   |                      |       | 21.85         |               |  |       | 12.83 |                  |  |                | 13.62 |       |  |         | 971,259   |        
|                      | Second Quarter                  |                      |       | 19.40         |               |  |       | 14.07 |                  |  |                | 18.86 |       |  |         | 723,959   |        
|                      | Third Quarter                   |                      |       | 20.83         |               |  |       | 17.71 |                  |  |                | 17.84 |       |  |         | 724,406   |        
|                      | Fourth Quarter                  |                      |       | 19.90         |               |  |       | 17.46 |                  |  |                | 18.65 |       |  |         | 564,023   |        
|2004                  |                                 |                      | 25.01 |               |               |  | 17.28 |       |                  |  | 22.25          |       |       |  | 911.823 |          
|                      | First Quarter                   |                      |       | 25.01         |               |  |       | 19.43 |                  |  |                | 21.30 |       |  |         | 1,331,177 |        
|                      | Second Quarter                  |                      |       | 21.83         |               |  |       | 19.15 |                  |  |                | 20.99 |       |  |         | 832,175   |        
|                      | Third Quarter                   |                      |       | 20.76         |               |  |       | 17.28 |                  |  |                | 19.45 |       |  |         | 768,117   |        
|                      | Fourth Quarter                  |                      |       | 23.10         |               |  |       | 19.30 |                  |  |                | 22.25 |       |  |         | 727,683   |        
|2005 (through May 24) |                                 |                      | 22.19 |               |               |  | 18.96 |       |                  |  | 20.11          |       |       |  | 748,222 |          
|                      | First Quarter                   |                      |       | 22.19         |               |  |       | 19.41 |                  |  |                | 19.72 |       |  |         | 798,390   |        
|                      |                                 | January              |       |               | 22.19         |  |       |       | 19.96            |  |                |       | 19.96 |  |         |           | 767,815 | 
|                      |                                 | February             |       |               | 21.30         |  |       |       | 19.74            |  |                |       | 21.30 |  |         |           | 931,705 | 
|                      |                                 | March                |       |               | 21.62         |  |       |       | 19.41            |  |                |       | 19.72 |  |         |           | 711,050 | 
|                      | Second Quarter (through May 24) |                      |       | 20.22         |               |  |       | 18.96 |                  |  |                | 20.11 |       |  |         | 667,689   |        
|                      |                                 | April                |       |               | 19.60         |  |       |       | 18.96            |  |                |       | 19.46 |  |         |           | 699,167 | 
|                      |                                 | May (through May 24) |       |               | 20.22         |  |       |       | 19.42            |  |                |       | 20.11 |  |         |           | 628,806 | 








|    |                                                                                                                                                                                                                 
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | The price give effect to the 10-for-1 stock split of our common
    shares which became effective on April 21, 2000 and
    resulted in the par value of each share being reduced from Won
    5,000 to Won 500.
|   
|(2) | Both high and low prices are based on the daily closing prices
    for the period.                                                                                                                              

96



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THE KOREAN SECURITIES MARKET


The Korea Exchange Inc.












97



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|                      |  |         |          |  |      |  |          |     |  |                |         |       |          |             |          |  |          |  |      |     |  |  |      |    
|--------------------- |  | ------- | -------- |  | ---- |  | -------- | --- |  | -------------- | ------- | ----- | -------- | ----------- | -------- |  | -------- |  | ---- | --- |  |  | ---- | ---
|                      |  |         |          |  |      |  |          |     |  | Period Average |        
|                      |  |         |          |  |      |  |          |     |  |                |        
|                      |  |         |          |  |      |  |          |     |  |                |         | Price |         
|                      |  |         |          |  |      |  |          |     |  | Dividend       |         |       | Earnings |            
|Year                  |  | Opening |          |  | High |  |          | Low |  |                | Closing |       |          | Yield(1)(%) |          |  | Ratio(2) | 
|                      |  |         |          |  |      |  |          |     |  |                |         |       |          |             |          |  |          | 
|1980                  |  |         | 100.00   |  |      |  | 119.36   |     |  |                | 100.00  |       |          |             | 106.87   |  |          |  | 20.9 |     |  |  | 2.6  |    
|1981                  |  |         | 97.95    |  |      |  | 165.95   |     |  |                | 93.14   |       |          |             | 131.37   |  |          |  | 13.2 |     |  |  | 3.1  |    
|1982                  |  |         | 123.60   |  |      |  | 134.49   |     |  |                | 106.00  |       |          |             | 127.31   |  |          |  | 10.5 |     |  |  | 3.4  |    
|1983                  |  |         | 122.52   |  |      |  | 134.46   |     |  |                | 115.59  |       |          |             | 121.21   |  |          |  | 6.9  |     |  |  | 3.8  |    
|1984                  |  |         | 116.73   |  |      |  | 142.46   |     |  |                | 114.37  |       |          |             | 142.46   |  |          |  | 5.1  |     |  |  | 4.5  |    
|1985                  |  |         | 139.53   |  |      |  | 163.37   |     |  |                | 131.40  |       |          |             | 163.37   |  |          |  | 5.3  |     |  |  | 5.2  |    
|1986                  |  |         | 161.40   |  |      |  | 279.67   |     |  |                | 153.85  |       |          |             | 272.61   |  |          |  | 4.3  |     |  |  | 7.6  |    
|1987                  |  |         | 264.82   |  |      |  | 525.11   |     |  |                | 264.82  |       |          |             | 525.11   |  |          |  | 2.6  |     |  |  | 10.9 |    
|1988                  |  |         | 532.04   |  |      |  | 922.56   |     |  |                | 527.89  |       |          |             | 907.20   |  |          |  | 2.4  |     |  |  | 11.2 |    
|1989                  |  |         | 919.61   |  |      |  | 1,007.77 |     |  |                | 844.75  |       |          |             | 909.72   |  |          |  | 2.0  |     |  |  | 13.9 |    
|1990                  |  |         | 908.59   |  |      |  | 928.77   |     |  |                | 566.27  |       |          |             | 696.11   |  |          |  | 2.2  |     |  |  | 12.8 |    
|1991                  |  |         | 679.75   |  |      |  | 763.10   |     |  |                | 586.51  |       |          |             | 610.92   |  |          |  | 2.6  |     |  |  | 11.2 |    
|1992                  |  |         | 624.23   |  |      |  | 691.48   |     |  |                | 459.07  |       |          |             | 678.44   |  |          |  | 2.2  |     |  |  | 10.9 |    
|1993                  |  |         | 697.41   |  |      |  | 874.10   |     |  |                | 605.93  |       |          |             | 866.18   |  |          |  | 1.6  |     |  |  | 12.7 |    
|1994                  |  |         | 879.32   |  |      |  | 1,138.75 |     |  |                | 860.47  |       |          |             | 1,027.37 |  |          |  | 1.2  |     |  |  | 16.2 |    
|1995                  |  |         | 1,013.57 |  |      |  | 1,016.77 |     |  |                | 847.09  |       |          |             | 882.94   |  |          |  | 1.2  |     |  |  | 16.4 |    
|1996                  |  |         | 888.85   |  |      |  | 986.84   |     |  |                | 651.22  |       |          |             | 651.22   |  |          |  | 1.3  |     |  |  | 17.8 |    
|1997                  |  |         | 653.79   |  |      |  | 792.29   |     |  |                | 350.68  |       |          |             | 376.31   |  |          |  | 1.5  |     |  |  | 17.0 |    
|1998                  |  |         | 385.49   |  |      |  | 579.86   |     |  |                | 280.00  |       |          |             | 562.46   |  |          |  | 1.9  |     |  |  | 10.8 |    
|1999                  |  |         | 587.57   |  |      |  | 1,028.07 |     |  |                | 498.42  |       |          |             | 1,028.07 |  |          |  | 1.1  |     |  |  | 13.5 |    
|2000                  |  |         | 1,059.04 |  |      |  | 1,059.04 |     |  |                | 500.60  |       |          |             | 504.62   |  |          |  | 1.6  | (3) |  |  | 18.6 | (3)
|2001                  |  |         | 520.95   |  |      |  | 704.50   |     |  |                | 468.76  |       |          |             | 693.70   |  |          |  | 2.0  | (3) |  |  | 14.2 | (3)
|2002                  |  |         | 724.95   |  |      |  | 937.61   |     |  |                | 584.04  |       |          |             | 829.44   |  |          |  | 1.4  | (3) |  |  | 17.9 | (3)
|2003                  |  |         | 653.17   |  |      |  | 822.16   |     |  |                | 515.24  |       |          |             | 810.71   |  |          |  | 2.1  | (3) |  |  | 11.7 | (3)
|2004                  |  |         | 821.26   |  |      |  | 936.06   |     |  |                | 719.59  |       |          |             | 895.92   |  |          |  | 2.6  | (3) |  |  | 7.1  | (3)
|2005 (through May 20) |  |         | 893.71   |  |      |  | 1,022.79 |     |  |                | 870.84  |       |          |             | 952.19   |  |          |  | N/A  |     |  |  | N/A  |    








|    |                                                                                                                                                                                                                                                                                                                                                               
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Dividend yields are based on daily figures. Before 1983,
    dividend yields were calculated at the end of each month.
    Dividend yields after January 3, 1984 include cash
    dividends only.                                                                                                                                                             
|   
|(2) | The price to earnings ratio is based on figures for companies
    that record a profit in the preceding year.                                                                                                                                                                                                                                                 
|   
|(3) | Starting in April 2000, dividend yield and price earnings ratio
    of KOSPI 200, an index of 200 equity securities listed on the
    KRX Stock Market. Starting in April 2000, excludes classified
    companies, companies which did not submit annual reports to the
    KRX, and companies which received disqualified opinion from
    external auditors.





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|                                   |  |              |       | 
|---------------------------------- |  | ------------ | ----- | 
|                                   |  | Rounded Down |      
|Previous Days Closing Price (Won) |  | to (Won)     |      
|                                   |  |              |      
|Less than 5,000                    |  | W            | 5     | 
|5,000 to less than 10,000          |  |              | 10    | 
|10,000 to less than 50,000         |  |              | 50    | 
|50,000 to less than 100,000        |  |              | 100   | 
|100,000 to less than 500,000       |  |              | 500   | 
|500,000 or more                    |  |              | 1,000 | 





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|                      |  |                                |     |  |                                      |   |             |               |  |     |             |  |  |              |         |  |               |   |           |  |  |     |           | 
|--------------------- |  | ------------------------------ | --- |  | ------------------------------------ | - | ----------- | ------------- |  | --- | ----------- |  |  | ------------ | ------- |  | ------------- | - | --------- |  |  | --- | --------- | 
|                      |  | Market Capitalization          |     |  |                                      |   |             |               | 
|                      |  | on the Last Day of Each Period |     |  |                                     
|                      |  |                                |     |  | Average Daily Trading Volume & Value |  
|                      |  | Number of                      |     |  |                                      |   |             |              
|                      |  | Listed                         |     |  | (Millions of                         |   |             | (Thousands of |  |     | Thousands   |  |  | (Millions of |         |  | (Thousands of |  
|Year                  |  | Companies                      |     |  | Won)                                 |   |             | Dollars)(1)   |  |     | of Shares   |  |  | Won)         |         |  | Dollars)(1)   |  
|                      |  |                                |     |  |                                      |   |             |               |  |     |             |  |  |              |         |  |               |  
|1980                  |  |                                | 352 |  |                                      | W | 2,526,553   |               |  | US$ | 3,828,691   |  |  |              | 5,654   |  |               | W | 3,897     |  |  | US$ | 5,905     | 
|1981                  |  |                                | 343 |  |                                      |   | 2,959,057   |               |  |     | 4,224,207   |  |  |              | 10,565  |  |               |   | 8,708     |  |  |     | 12,433    | 
|1982                  |  |                                | 334 |  |                                      |   | 3,000,494   |               |  |     | 4,407,711   |  |  |              | 9,704   |  |               |   | 6,667     |  |  |     | 8,904     | 
|1983                  |  |                                | 328 |  |                                      |   | 3,489,654   |               |  |     | 4,386,743   |  |  |              | 9,325   |  |               |   | 5,941     |  |  |     | 7,468     | 
|1984                  |  |                                | 336 |  |                                      |   | 5,148,460   |               |  |     | 6,222,456   |  |  |              | 14,847  |  |               |   | 10,642    |  |  |     | 12,862    | 
|1985                  |  |                                | 342 |  |                                      |   | 6,570,404   |               |  |     | 7,380,818   |  |  |              | 18,925  |  |               |   | 12,315    |  |  |     | 13,834    | 
|1986                  |  |                                | 355 |  |                                      |   | 11,994,233  |               |  |     | 13,924,115  |  |  |              | 31,755  |  |               |   | 32,870    |  |  |     | 38,159    | 
|1987                  |  |                                | 389 |  |                                      |   | 26,172,174  |               |  |     | 33,033,162  |  |  |              | 20,353  |  |               |   | 70,185    |  |  |     | 88,584    | 
|1988                  |  |                                | 502 |  |                                      |   | 64,543,685  |               |  |     | 94,348,318  |  |  |              | 10,367  |  |               |   | 198,364   |  |  |     | 289,963   | 
|1989                  |  |                                | 626 |  |                                      |   | 95,476,774  |               |  |     | 140,489,660 |  |  |              | 11,757  |  |               |   | 280,967   |  |  |     | 414,431   | 
|1990                  |  |                                | 669 |  |                                      |   | 79,019,676  |               |  |     | 110,301,055 |  |  |              | 10,866  |  |               |   | 183,692   |  |  |     | 256,500   | 
|1991                  |  |                                | 686 |  |                                      |   | 73,117,833  |               |  |     | 96,182,364  |  |  |              | 14,022  |  |               |   | 214,263   |  |  |     | 281,850   | 
|1992                  |  |                                | 688 |  |                                      |   | 84,711,982  |               |  |     | 107,502,515 |  |  |              | 24,028  |  |               |   | 308,246   |  |  |     | 391,175   | 
|1993                  |  |                                | 693 |  |                                      |   | 112,665,260 |               |  |     | 139,419,948 |  |  |              | 35,130  |  |               |   | 574,048   |  |  |     | 676,954   | 
|1994                  |  |                                | 699 |  |                                      |   | 151,217,231 |               |  |     | 191,729,721 |  |  |              | 36,862  |  |               |   | 776,257   |  |  |     | 984,223   | 
|1995                  |  |                                | 721 |  |                                      |   | 141,151,399 |               |  |     | 182,201,367 |  |  |              | 26,130  |  |               |   | 487,762   |  |  |     | 629,614   | 
|1996                  |  |                                | 760 |  |                                      |   | 117,369,988 |               |  |     | 139,031,021 |  |  |              | 26,571  |  |               |   | 486,834   |  |  |     | 575,733   | 
|1997                  |  |                                | 776 |  |                                      |   | 70,988,897  |               |  |     | 50,161,742  |  |  |              | 41,525  |  |               |   | 555,759   |  |  |     | 392,707   | 
|1998                  |  |                                | 748 |  |                                      |   | 137,798,451 |               |  |     | 114,090,455 |  |  |              | 97,716  |  |               |   | 660,429   |  |  |     | 471,432   | 
|1999                  |  |                                | 725 |  |                                      |   | 349,503,966 |               |  |     | 305,137,040 |  |  |              | 278,551 |  |               |   | 3,481,620 |  |  |     | 3,039,654 | 
|2000                  |  |                                | 704 |  |                                      |   | 188,041,490 |               |  |     | 150,162,898 |  |  |              | 306,163 |  |               |   | 2,602,211 |  |  |     | 2,078,028 | 
|2001                  |  |                                | 689 |  |                                      |   | 225,850,076 |               |  |     | 194,784,979 |  |  |              | 473,241 |  |               |   | 1,997,420 |  |  |     | 1,520,685 | 
|2002                  |  |                                | 683 |  |                                      |   | 258,680,756 |               |  |     | 218,167,122 |  |  |              | 851,242 |  |               |   | 3,041,592 |  |  |     | 2,414,362 | 
|2003                  |  |                                | 684 |  |                                      |   | 355,362,626 |               |  |     | 297,960,530 |  |  |              | 542,010 |  |               |   | 2,216,636 |  |  |     | 1,858,580 | 
|2004                  |  |                                | 683 |  |                                      |   | 412,588,138 |               |  |     | 427,069,982 |  |  |              | 372,894 |  |               |   | 2,232,108 |  |  |     | 2,310,455 | 
|2005 (through May 24) |  |                                | 655 |  |                                      |   | 442,054,261 |               |  |     | 445,148,641 |  |  |              | 458,023 |  |               |   | 2,515,201 |  |  |     | 2,532,808 | 








|    |                                                                                                                                                                                    
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Converted at the noon buying rate in The City of New York for
    cable transfers in Won per US$1.00 as certified for customs
    purposes by the Federal Reserve Bank of New York.



100



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Further Opening of the Korean Securities Market












Protection of Customers Interest in Case of Insolvency
of Securities Companies












101



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Item. 10     Additional
Information


DESCRIPTION OF CAPITAL STOCK




General






| |   |                                                                                                          
| | - | ---------------------------------------------------------------------------------------------------------
| |  | information and communication business;                                                                  
|
| |  | sale and lease of subscriber handsets;                                                                   
|
| |  | new media business;                                                                                      
|
| |  | advertising business;                                                                                    
|
| |  | mail order business;                                                                                     
|
| |  | business of leasing available and real estate property;                                                  
|
| |  | research and technology development relating to the first four
    items above;                          
|
| |  | overseas and import/ export business relating to the first four
    items above;                         
|
| |  | manufacture and distribution business relating to the first four
    items above; and                    
|
| |  | any business or undertaking incidental or conducive to the
    attainment of the objectives stated above.



Board of Directors




102



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| |   |                                                                                                                                                                                                                             
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | investment by us or any of our subsidiaries in a foreign company
    or equity or other overseas assets in an amount equal to 5.0% or
    more of our shareholders equity under our most recent
    balance sheet; and     
|
| |  | contribution of capital, loans or guarantees, acquisition of our
    subsidiaries assets or similar transactions with our
    affiliated companies in excess of Won 10 billion through
    one or a series of transactions.







Dividends










103



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Distribution of Free Shares




Preemptive Rights and Issuance of Additional Shares










104



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General Meeting of Shareholders






| |   |                                                                                                                              
| | - | -----------------------------------------------------------------------------------------------------------------------------
| |  | as necessary;                                                                                                                
|
| |  | at the request of holders of an aggregate of 3.0% or more of our
    outstanding common shares;                              
|
| |  | at the request of shareholders holding an aggregate of 3.0% or
    more of our outstanding shares for at least six months; or
|
| |  | at the request of our audit committee.                                                                                       







Voting Rights








| |   |                                                                                                                                                                       
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | amending our articles of incorporation;                                                                                                                               
|
| |  | removing a director;                                                                                                                                                  
|
| |  | effecting any dissolution, merger or consolidation of us;                                                                                                             
|
| |  | transferring the whole or any significant part of our business;                                                                                                       
|
| |  | effecting our acquisition of all of the business of any other
    company or a part of the business of any other company having a
    material effect on our business;
|
| |  | reducing our capital; or                                                                                                                                              

105



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| |   |                                                              
| | - | -------------------------------------------------------------
| |  | issuing any new shares at a price lower than their par value.







Rights of Dissenting Shareholders




Registry of Shareholders and Record Dates






Annual Report




106



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Transfer of Shares








Restrictions Applicable to Shares




Acquisition of Shares by Us






107



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Liquidation Rights




DESCRIPTION OF AMERICAN DEPOSITARY SHARES




American Depositary Receipts




Deposit and Withdrawal of Shares of Common Stock






108



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| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | before or at the time of the pre-release, the person to whom the
    pre-release is being made must represent to the ADR depositary
    in writing that it or its customer owns the shares of common
    stock or ADRs to be deposited and show evidence of the ownership
    to the ADR depositarys satisfaction;                                                                                                                                         
|
| |  | before or at the time of such pre-release, the person to whom
    the pre-release is being made must agree in writing that he will
    hold the shares of common stock or ADSs in trust for the ADR
    depositary until their delivery to the ADR depositary or
    custodian, reflect on his records the ADR depositary as owner of
    such shares of common stock or ADSs and deliver such shares of
    common stock upon the ADR depositarys request;
|
| |  | the pre-release must be fully collateralized with cash or
    U.S. government securities;                                                                                                                                                                                                                                                                                                                                                                   
|
| |  | the ADR depositary must be able to terminate the pre-release on
    not more than five business days notice; and                                                                                                                                                                                                                                                                                                                                           
|
| |  | the pre-release is subject to further indemnities and credit
    regulations as the ADR depositary deems appropriate.                                                                                                                                                                                                                                                                                                                                       

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Dividends, Other Distributions and Rights










110



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Record Dates






| |   |                                                                                                                    
| | - | -------------------------------------------------------------------------------------------------------------------
| |  | any cash dividend or other cash distribution becomes payable;                                                      
|
| |  | any distribution other than cash is made;                                                                          
|
| |  | rights are issued with respect to deposited shares of common
    stock;                                            
|
| |  | the ADR depositary causes a change in the number of shares of
    common stock that are represented by each ADS; or
|
| |  | the ADR depositary receives notice of any shareholders
    meeting.                                               



Voting of the Underlying Shares of Common Stock






| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | the information contained in our notice to the ADR depositary
    including an English translation, or, if requested by us, a
    summary of the information provided by us;                                                                                                                                                                                                                                                                                      
|
| |  | a statement that the ADR holders as of the close of business on
    a specified record date will be entitled to instruct the ADR
    depositary as to how to exercise their voting rights for the
    number of shares of deposited shares of common stock, subject to
    the provisions of applicable Korean law and our articles of
    incorporation, which provisions, if any, will be summarized in
    the notice to the extent that they are material; and

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| |   |                                                                                       
| | - | --------------------------------------------------------------------------------------
| |  | a statement as to the manner in which the ADR holders may give
    their instructions.



Inspection of Transfer Books




Reports and Notices








Changes Affecting Deposited Shares of Common Stock




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Amendment and Termination of the Deposit Agreement










| |   |                                                                                                                                                                                                                                                                                                           
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | to collect dividends and other distributions pertaining to the
    deposited shares of common stock;                                                                                                                                                                                                      
|
| |  | to sell property and rights and the conversion of deposited
    shares of common stock into cash as provided in the deposit
    agreement; and                                                                                                                                                            
|
| |  | to deliver deposited shares of common stock, together with any
    dividends or other distributions received with respect to the
    deposited shares of common stock and the net proceeds of the
    sale of any rights or other property represented by those ADSs
    in exchange for surrendered ADRs.



Charges of ADR Depositary






| |   |                                                                                                                                                                                                                                                                                                                                 
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | taxes and other governmental charges;                                                                                                                                                                                                                                                                                           
|
| |  | registration fees applicable to transfers of shares of common
    stock on our shareholders register, or that of any entity
    acting as registrar for the shares, to the name of the ADR
    depositary or its nominee, or the Custodian or its nominee, when
    making deposits or withdrawals under the deposit agreement;
|
| |  | cable, telex and facsimile transmission expenses that are
    expressly provided in the deposit agreement;                                                                                                                                                                                                                      
|
| |  | expenses incurred by the ADR depositary in the conversion of
    foreign currency into Dollars under the deposit agreement;                                                                                                                                                                                                     
|
| |  | a fee of up to US$5.00 per 100 ADSs, or portion thereof,
    for execution and delivery of ADSs and the surrender of ADRs
    under the deposit agreement; and                                                                                                                                                                  
|
| |  | a fee of up to US$0.02 per ADS held for cash distributions,
    a sale or exercise of rights or the taking of any other
    corporate action involving distributions to shareholders.                                                                                                                                           

113



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General










Governing Law






114



---



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Information Relating to the ADR Depositary










MATERIAL CONTRACTS




KOREAN FOREIGN EXCHANGE CONTROLS AND SECURITIES
REGULATIONS


General








| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | if the Government deems it necessary on account of war, armed
    conflict, natural disaster or grave and sudden and significant
    changes in domestic or foreign economic circumstances or similar
    events or circumstances, the MOFE may temporarily suspend
    performance under any or all foreign exchange transactions, in
    whole or in part, to which the Foreign Exchange Transaction Laws
    apply (including suspension of payment and receipt of foreign
    exchange) or impose an obligation to deposit, safe-keep or

115



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| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |   | sell any means of payment to The Bank of Korea or certain other
    governmental agencies or financial institutions; and                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|
| |  | if the Government concludes that the international balance of
    payments and international financial markets are experiencing or
    are likely to experience significant disruption or that the
    movement of capital between Korea and other countries are likely
    to adversely affect the Won, exchange rate or other
    macroeconomic policies, the MOFE may take action to require any
    person who intends to effect or effects a capital transaction to
    deposit all or a portion of the means of payment acquired in
    such transactions with The Bank of Korea or certain other
    governmental agencies or financial institutions.

Government Review of Issuances of ADSs








| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | the aggregate number of common shares deposited by us or with
    our consent for the issuance of ADSs (including deposits in
    connection with the initial and all subsequent offerings of ADSs
    and stock dividends or other distributions related to these
    ADSs); and                                                                                                                                                                                                                                                                                                                                  
|
| |  | the number of common shares on deposit with the ADR depositary
    at the time of such proposed deposit. We can give no assurance
    that we would grant our consent, if our consent is required. In
    addition to such restrictions under Korean laws and regulations,
    there are also restrictions on the deposits of our common shares
    for issuance of ADSs. See Additional
    Information  Description of American Depositary
    Shares. Therefore, a holder of ADRs who surrenders ADRs
    and withdraws shares may not be permitted subsequently to
    deposit those shares and obtain ADRs.

Reporting Requirements for Holders of Substantial
Interests




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Restrictions Applicable to ADSs






Restrictions Applicable to Shares






| |   |                                                                                                                                                                                                                                                            
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | odd-lot trading of shares;                                                                                                                                                                                                                                 
|
| |  | acquisition of shares by a foreign company as a result of a
    merger;                                                                                                                                                                                    
|
| |  | acquisition or disposal of shares in connection with a tender
    offer;                                                                                                                                                                                   
|
| |  | acquisition of shares by exercise of warrant, conversion right
    under convertible bonds, exchange right under exchangeable bonds
    or withdrawal right under depositary receipts issued outside of
    Korea by a Korean company (Converted Shares);
|
| |  | acquisition of shares through exercise of rights under
    securities issued outside of Korea;                                                                                                                                                             
|
| |  | acquisition of shares as a result of inheritance, donation,
    bequest or exercise of shareholders rights, including
    preemptive rights or rights to participate in free distributions
    and receive dividends;                                     
|
| |  | over-the-counter transactions between foreigners of a class of
    shares for which the ceiling on aggregate acquisition by
    foreigners, as explained below, has been reached or
    exceeded; and                                                      
|
| |  | acquisition of shares by direct investment under the Foreign
    Investment Promotion Law.                                                                                                                                                                 



117



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118



---



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Further Opening of the Korean Securities Market






119



---



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Protection of Customers Interest in case of Insolvency
of Securities Companies














120



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TAXATION




U.S. Federal Income Tax Consequences






Scope of This Disclosure




| |            
| | -----------
| | Authorities





| |             
| | ------------
| | U.S. Holders





| |                 
| | ----------------
| | Non-U.S. Holders



121



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| |                                                                                
| | -------------------------------------------------------------------------------
| | U.S. Holders Subject to Special U.S. Federal
    Income Tax Rules Not Addressed







| |                                                                                   
| | ----------------------------------------------------------------------------------
| | Tax Consequences Other than U.S. Federal Income Tax
    Consequences Not Addressed



U.S. Federal Income Tax Consequences of the Acquisition,
Ownership, and Disposition of ADSs or Shares of SK Telecom




| |                  
| | -----------------
| | Treatment of ADSs





| |              
| | -------------
| | Distributions



| |                                  
| | ---------------------------------
| | General Taxation of Distributions



122



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| |                                        
| | ---------------------------------------
| | Reduced Tax Rates for Certain Dividends











| |                                       
| | --------------------------------------
| | Distributions Paid in Foreign Currency



123



---



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| |                             
| | ----------------------------
| | Dividends Received Deduction







| |            
| | -----------
| | Disposition







| |                   
| | ------------------
| | Foreign Tax Credit





124



---



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| |                                              
| | ---------------------------------------------
| | Information Reporting; Backup Withholding Tax



Additional Rules that May Apply to U.S. Holders












125



---



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Korean Taxation






| |   |                                                                                                                                                                                                               
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | a resident of Korea;                                                                                                                                                                                          
|
| |  | a corporation organized under Korean law; or                                                                                                                                                                  
|
| |  | engaged in a trade or business in Korea through a permanent
    establishment or a fixed base to which the relevant income is
    attributable or with which the relevant income is effectively
    connected.

Dividends on the Shares or ADSs








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Taxation Of Capital Gains








Inheritance Tax And Gift Tax






127



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Securities Transaction Tax










Documents On Display









Item. 11     Quantitative and
Qualitative Disclosures about Market Risk


Quantitative and Qualitative Disclosures about Market Risk




| |                                      
| | -------------------------------------
| | Exchange Rate and Interest Rate Risks



128



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| |                   
| | ------------------
| | Exchange Rate Risk





| |                   
| | ------------------
| | Interest Rate Risk



|                  |                          |                                                  |       |       |       |       |   |       |       |       |      |       |       |       |   |       |            |       |   |       |       |       |            |       |       |       |   |         |         |         |   |         |         |         | 
|----------------- | ------------------------ | ------------------------------------------------ | ----- | ----- | ----- | ----- | - | ----- | ----- | ----- | ---- | ----- | ----- | ----- | - | ----- | ---------- | ----- | - | ----- | ----- | ----- | ---------- | ----- | ----- | ----- | - | ------- | ------- | ------- | - | ------- | ------- | ------- | 
|                  |                          | Maturities                                       |      
|                  |                          |                                                  |      
|                  |                          | 2005                                             |       |       | 2006  |       |   | 2007  |       |       | 2008 |       |       | 2009  |   |       | Thereafter |       |   | Total |       |       | Fair Value |      
|                  |                          |                                                  |       |       |       |       |   |       |       |       |      |       |       |       |   |       |            |       |   |       |       |       |            |      
|                  |                          | (In billions of Won, except for percentage data) |      
|Local currency:   |                          |                                                  |       |       |       |       |   |       |       |       |      |       |       |       |   |       |            |       |   |       |       |       |            |       |       |       |   |         |         |         |   |        
|                  | Fixed rate               |                                                  | W     | 898.3 |       |       | W | 788.8 |       |       | W    | 687.7 |       |       | W | 297.0 |            |       | W | 297.2 |       |       | W          | 187.8 |       |       | W | 3,156.8 |         |         | W | 3,277.0 |        
|                  | Average weighted rate(1) |                                                  |       | 4.90  | %     |       |   | 5.50  | %     |       |      | 5.57  | %     |       |   | 5.00  | %          |       |   | 5.00  | %     |       |            | 3.00  | %     |       |   |         |         |         |   |         |        
|                  | Variable rate            |                                                  |       |      |       |       |   |      |       |       |      |      |       |       |   |      |            |       |   |      |       |       |            |      |       |       |   |        |         |         |   |         |        
|                  | Average weighted rate(1) |                                                  |       |       |       |       |   |       |       |       |      |       |       |       |   |       |            |       |   |       |       |       |            |       |       |       |   |         |         |         |   |         |        
|                  |                          |                                                  |       |       |       |       |   |       |       |       |      |       |       |       |   |       |            |       |   |       |       |       |            |      
|                  |                          | Sub-total                                        |       | W     | 898.3 |       |   | W     | 788.8 |       |      | W     | 687.7 |       |   | W     | 297.0      |       |   | W     | 297.2 |       |            |       | 187.8 |       |   | W       | 3,156.8 |         |   | W       | 3,277.0 |        
|                  |                          |                                                  |       |       |       |       |   |       |       |       |      |       |       |       |   |       |            |       |   |       |       |       |            |      
|Foreign currency: |                          |                                                  |       |       |       |       |   |       |       |       |      |       |       |       |   |       |            |       |   |       |       |       |            |       |       |       |   |         |         |         |   |        
|                  | Fixed rate               |                                                  | W     | 25.5  |       |       |   |      |       |       |      |      |       |       |   |      |            |       |   | 323.7 |       |       |            | 309.6 |       |       | W | 658.8   |         |         | W | 696.0   |        
|                  | Average weighted rate(1) |                                                  |       | 2.51  | %     |       |   | 0.00  | %     |       |      | 0.00  | %     |       |   | 0.00  | %          |       |   | 0.00  | %     |       |            | 4.25  | %     |       |   |         |         |         |   |         |        
|                  | Variable rate            |                                                  | W     |      |       |       | W |      |       |       | W    |      |       |       |   |      |            |       |   |      |       |       |            |      |       |       | W |        |         |         | W |        |        
|                  | Average weighted rate(1) |                                                  |       | 0.00  | %     |       |   | 0.00  | %     |       |      | 0.00  | %     |       |   | 0.00  | %          |       |   | 0.00  | %     |       |            | 0.00  | %     |       |   |         |         |         |   |         |        
|                  |                          |                                                  |       |       |       |       |   |       |       |       |      |       |       |       |   |       |            |       |   |       |       |       |            |      
|                  |                          | Sub-total                                        |       | W     | 25.5  |       |   | W     |      |       |      | W     |      |       |   |       |           |       |   | W     | 323.7 |       |            | W     | 309.6 |       |   | W       | 658.8   |         |   | W       | 696.0   |        
|                  |                          |                                                  |       |       |       |       |   |       |       |       |      |       |       |       |   |       |            |       |   |       |       |       |            |      
|                  |                          |                                                  | Total |       | W     | 923.8 |   |       | W     | 788.8 |      |       | W     | 687.7 |   |       | W          | 297.0 |   |       | W     | 620.9 |            |       | W     | 497.4 |   |         | W       | 3,815.6 |   |         | W       | 3,973.0 | 
|                  |                          |                                                  |       |       |       |       |   |       |       |       |      |       |       |       |   |       |            |       |   |       |       |       |            |      






|    |                                                           
|--- | ----------------------------------------------------------
|(1) | Weighted average rates of the portfolio at the period end.



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Item. 12     Description of
Securities other than Equity Securities







Item. 13     Defaults, Dividend
Arrearage and Delinquencies







Item. 14     Material
Modifications to the Rights of Security Holders and Use of
Proceeds







Item. 15     Controls and
Procedures


Disclosure Controls And Procedures








Changes In Internal Controls Over Financial Reporting







Item. 16A     Audit Committee
Financial Expert




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Item. 16B     Code of
Ethics


Code of Ethics for Chief Executive Officer, Chief Financial
Officer and Controller







Item. 16C     Principal
Accountant Fees and Services




|               |  |                          |                  |  |      |   |                   |      |  |   |                   | 
|-------------- |  | ------------------------ | ---------------- |  | ---- | - | ----------------- | ---- |  | - | ----------------- | 
|               |  | Years Ended December 31, |                 
|               |  |                          |                 
|               |  | 2004                     |                  |  | 2003 |   |                   | 2002 | 
|               |  |                          |                  |  |      |   |                   |      | 
|               |  | (In millions of Won)     |                 
|Audit          |  | W                        | 841.3 million    |  |      | W | 727.7 million     |      |  | W | 913.9 million     | 
|Audit Related  |  | W                        | 127.7 million    |  |      | W | 13.7 million      |      |  | W | 122.0 million     | 
|Tax            |  | W                        | 110.1 million    |  |      | W | 143.0 million     |      |  | W | 74.7 million      | 
|All Other Fees |  | W                        | 2,418.0  million |  |      | W | 12,006.2  million |      |  | W | 11,058.4  million | 
|               |  |                          |                  |  |      |   |                   |      | 
|Total          |  | W                        | 3,497.1  million |  |      | W | 12,890.6  million |      |  | W | 12,169.0  million | 
|               |  |                          |                  |  |      |   |                   |      | 









Pre-Approval of Audit and Non-Audit Services Provided by
Independent Auditors




de minimis


131



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Item. 16D     Exemptions from the
Listing Standards for Audit Committees







Item. 16E     Purchases of Equity
Securities by the Issuer and Affiliated Purchasers






|          |       |           |    |    |            |                 |                     |                  |                |                    |                  |   |  |  |   |   | 
|--------- | ----- | --------- | -- | -- | ---------- | --------------- | ------------------- | ---------------- | -------------- | ------------------ | ---------------- | - |  |  | - | - | 
|          |       |           |    |    |            | Total Number of |                     |                  | Maximum Number |                   
|          |       | Total     |    |    |            |                 | Shares Purchased as |                  |                | of Shares that May |                 
|          |       | Number of |    |    | Average    |                 |                     | Part of Publicly |                |                    | Yet be Purchased |  
|          |       | Shares    |    |    | Price Paid |                 |                     | Announced Plans  |                |                    | Under the Plans  |  
|Period    |       | Purchased |    |    | Per Share  |                 |                     | or Programs      |                |                    | or Programs      |  
|          |       |           |    |    |            |                 |                     |                  |                |                    |                  |  
|January   |       |           |   |    |            | W               |                    |                  |                |                    |                 |   |  |  |  |  
|February  |       |           | 12 |    |            | W               | 173,500             |                  |                |                    |                 |   |  |  |  |  
|March     |       |           |   |    |            | W               |                    |                  |                |                    |                 |   |  |  |  |  
|April     |       |           |   |    |            | W               |                    |                  |                |                    |                 |   |  |  |  |  
|May       |       |           |   |    |            | W               |                    |                  |                |                    |                 |   |  |  |  |  
|June      |       |           |   |    |            | W               |                    |                  |                |                    |                 |   |  |  |  |  
|July      |       |           |   |    |            | W               |                    |                  |                |                    |                 |   |  |  |  |  
|August    |       |           |   |    |            | W               |                    |                  |                |                    |                 |   |  |  |  |  
|September |       |           |   |    |            | W               |                    |                  |                |                    |                 |   |  |  |  |  
|October   |       |           |   |    |            | W               |                    |                  |                |                    |                 |   |  |  |  |  
|November  |       |           |   |    |            | W               |                    |                  |                |                    |                 |   |  |  |  |  
|December  |       |           |   |    |            | W               |                    |                  |                |                    |                 |   |  |  |  |  
|          |       |           |    |    |            |                 |                     |                  |                |                    |                  |  
|          | Total |           |    | 12 |            |                 | W                   |                 |                |                    |                  |  |  |  |   |  | 
|          |       |           |    |    |            |                 |                     |                  |                |                    |                  |  





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Item. 17     Financial
Statements





Item. 18     Financial
Statements




133



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INDEX TO FINANCIAL STATEMENTS


|                                                                                                                                               |  |      |      | 
|---------------------------------------------------------------------------------------------------------------------------------------------- |  | ---- | ---- | 
|                                                                                                                                               |  | Page |     
|                                                                                                                                               |  |      |     
|Report of Independent Registered Public Accounting Firm of
    Deloitte HanaAnjin LLC for the years ended December 31,
    2002, 2003 and 2004 |  |      | F-3  | 
|Consolidated Balance Sheets as of December 31, 2002, 2003
    and 2004                                                                         |  |      | F-5  | 
|Consolidated Statements of Income for the Years Ended
    December 31, 2002, 2003 and 2004                                                     |  |      | F-7  | 
|Consolidated Statements of Cash Flows for the Years Ended
    December 31, 2002, 2003 and 2004                                                 |  |      | F-11 | 
|Consolidated Statements of Shareholders Equity for the
    Years Ended December 31, 2002, 2003 and 2004                                       |  |      | F-9  | 
|Notes to Consolidated Financial Statements                                                                                                     |  |      | F-15 | 

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SK TELECOM CO., LTD. AND SUBSIDIARIES


CONSOLIDATED FINANCIAL STATEMENTS


For the Years Ended December 31, 2002, 2003 and 2004
and


Report of Independent Registered Public Accounting Firm


F-2



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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM




















F-3



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##### Table of Contents











F-4



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##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


CONSOLIDATED BALANCE SHEETS


December 31, 2002, 2003 and 2004


|                    |                                                                                                                                                                                                                |                           |            |              |                 |   |            |           |           |   |            |           |           |   |            |           |           | 
|------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------- | ---------- | ------------ | --------------- | - | ---------- | --------- | --------- | - | ---------- | --------- | --------- | - | ---------- | --------- | --------- | 
|                    |                                                                                                                                                                                                                | 2002                      |            |              | 2003            |   |            | 2004      |           |   | 2004       |          
|                    |                                                                                                                                                                                                                |                           |            |              |                 |   |            |           |           |   |            |          
|                    |                                                                                                                                                                                                                | In millions of Korean won |            |              | In thousands of |  
|                    |                                                                                                                                                                                                                |                           |            | U.S. dollars |                
|                    |                                                                                                                                                                                                                |                           |            | (Note 2)     |                
|ASSETS             
|CURRENT ASSETS:     |                                                                                                                                                                                                                |                           |            |              |                 |   |            |           |           |   |            |           |           |   |            |          
|                    | Cash and cash equivalents (Note 12)                                                                                                                                                                            |                           | W          | 664,117      |                 |   | W          | 317,488   |           |   | W          | 370,630   |           |   | $          | 358,062   |          
|                    | Short-term financial instruments (Notes 12 and 20)                                                                                                                                                             |                           |            | 202,905      |                 |   |            | 154,922   |           |   |            | 12,730    |           |   |            | 12,298    |          
|                    | Trading securities (Notes 2 and 3)                                                                                                                                                                             |                           |            | 754,219      |                 |   |            | 893,217   |           |   |            | 654,779   |           |   |            | 632,576   |          
|                    | Current portion of long-term investment securities (Notes 2
    and 3)                                                                                                                                         |                           |            | 70,267       |                 |   |            | 85,861    |           |   |            | 3,709     |           |   |            | 3,583     |          
|                    | Accounts receivable  trade, net of allowance for
    doubtful accounts of W60,542 million, W65,327 million
    and W71,090 million at December 31, 2002, 2003 and
    2004, respectively (Notes 2 ,12 and 22) |                           |            | 1,442,135    |                 |   |            | 1,579,153 |           |   |            | 1,720,201 |           |   |            | 1,661,869 |          
|                    | Accounts receivable  other, net of allowance for
    doubtful accounts of W23,355 million, W16,768 million
    and W15,622 million at December 31, 2002, 2003 and
    2004, respectively (Notes 2, 12 and 22) |                           |            | 852,873      |                 |   |            | 867,120   |           |   |            | 1,406,553 |           |   |            | 1,358,857 |          
|                    | Inventories (Notes 2 and 21)                                                                                                                                                                                   |                           |            | 27,460       |                 |   |            | 31,516    |           |   |            | 52,321    |           |   |            | 50,547    |          
|                    | Short-term loans and other (Note 5)                                                                                                                                                                            |                           |            | 99,748       |                 |   |            | 140,248   |           |   |            | 169,770   |           |   |            | 164,014   |          
|                    |                                                                                                                                                                                                                |                           |            |              |                 |   |            |           |           |   |            |          
|                    |                                                                                                                                                                                                                | Total Current Assets      |            |              | 4,113,724       |   |            |           | 4,069,525 |   |            |           | 4,390,693 |   |            |           | 4,241,806 | 
|                    |                                                                                                                                                                                                                |                           |            |              |                 |   |            |           |           |   |            |          
|NON-CURRENT ASSETS: |                                                                                                                                                                                                                |                           |            |              |                 |   |            |           |           |   |            |           |           |   |            |          
|                    | Property and equipment, net (Notes 2, 6, 11, 20
    and 21)                                                                                                                                                    |                           |            | 4,569,417    |                 |   |            | 4,641,547 |           |   |            | 4,703,922 |           |   |            | 4,544,413 |          
|                    | Intangible assets (Notes 2 and 7)                                                                                                                                                                              |                           |            | 3,721,235    |                 |   |            | 3,674,944 |           |   |            | 3,522,903 |           |   |            | 3,403,442 |          
|                    | Long-term investment securities (Notes 2 and 3)                                                                                                                                                                |                           |            | 1,394,697    |                 |   |            | 879,193   |           |   |            | 948,101   |           |   |            | 915,951   |          
|                    | Equity securities accounted for using the equity method
    (Notes 2 and 4)                                                                                                                                    |                           |            | 81,247       |                 |   |            | 183,709   |           |   |            | 304,028   |           |   |            | 293,718   |          
|                    | Long-term bank deposits (Note 20)                                                                                                                                                                              |                           |            | 177          |                 |   |            | 352       |           |   |            | 10,351    |           |   |            | 10,000    |          
|                    | Long-term loans, net of allowance for doubtful accounts of
    W19,486 million, W19,552 million and
    W19,273 million at December 31, 2002, 2003 and 2004,
    respectively (Notes 2 and 5)                  |                           |            | 52,688       |                 |   |            | 40,819    |           |   |            | 30,442    |           |   |            | 29,410    |          
|                    | Guarantee deposits (Notes 12 and 22)                                                                                                                                                                           |                           |            | 249,331      |                 |   |            | 270,255   |           |   |            | 289,015   |           |   |            | 279,215   |          
|                    | Other                                                                                                                                                                                                          |                           |            | 46,194       |                 |   |            | 57,873    |           |   |            | 83,903    |           |   |            | 81,058    |          
|                    |                                                                                                                                                                                                                |                           |            |              |                 |   |            |           |           |   |            |          
|                    |                                                                                                                                                                                                                | Total Non-Current Assets  |            |              | 10,114,986      |   |            |           | 9,748,692 |   |            |           | 9,892,665 |   |            |           | 9,557,207 | 
|                    |                                                                                                                                                                                                                |                           |            |              |                 |   |            |           |           |   |            |          
|TOTAL ASSETS        |                                                                                                                                                                                                                | W                         | 14,228,710 |              |                 | W | 13,818,217 |           |           | W | 14,283,358 |           |           | $ | 13,799,013 |          
|                    |                                                                                                                                                                                                                |                           |            |              |                 |   |            |           |           |   |            |          

F-5



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##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


CONSOLIDATED BALANCE SHEETS  (Continued)


December 31, 2002, 2003 and 2004


|                                           |                                                                                                                                                                                          |                                                                                     |            |              |                 |   |            |           |            |   |            |           |            |   |            |           |            |  
|------------------------------------------ | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------- | ---------- | ------------ | --------------- | - | ---------- | --------- | ---------- | - | ---------- | --------- | ---------- | - | ---------- | --------- | ---------- | -
|                                           |                                                                                                                                                                                          | 2002                                                                                |            |              | 2003            |   |            | 2004      |            |   | 2004       |          
|                                           |                                                                                                                                                                                          |                                                                                     |            |              |                 |   |            |           |            |   |            |          
|                                           |                                                                                                                                                                                          | In millions of Korean won                                                           |            |              | In thousands of |  
|                                           |                                                                                                                                                                                          |                                                                                     |            | U.S. dollars |                
|                                           |                                                                                                                                                                                          |                                                                                     |            | (Note 2)     |                
|LIABILITIES AND SHAREHOLDERS EQUITY      
|CURRENT LIABILITIES:                       |                                                                                                                                                                                          |                                                                                     |            |              |                 |   |            |           |            |   |            |           |            |   |            |          
|                                           | Accounts payable (Notes 12 and 22)                                                                                                                                                       |                                                                                     | W          | 1,697,502    |                 |   | W          | 1,317,162 |            |   | W          | 1,205,682 |            |   | $          | 1,164,798 |           
|                                           | Short-term borrowings (Note 12)                                                                                                                                                          |                                                                                     |            | 687,296      |                 |   |            | 786,096   |            |   |            | 425,496   |            |   |            | 411,068   |           
|                                           | Income taxes payable                                                                                                                                                                     |                                                                                     |            | 383,900      |                 |   |            | 402,559   |            |   |            | 273,495   |            |   |            | 264,221   |           
|                                           | Accrued expenses (Note 12)                                                                                                                                                               |                                                                                     |            | 408,521      |                 |   |            | 420,995   |            |   |            | 394,354   |            |   |            | 380,982   |           
|                                           | Current portion of long-term debt (Notes 8, 9 and 11)                                                                                                                                    |                                                                                     |            | 922,209      |                 |   |            | 1,364,264 |            |   |            | 498,278   |            |   |            | 481,382   |           
|                                           | Current portion of facility deposits                                                                                                                                                     |                                                                                     |            | 18,415       |                 |   |            | 12,881    |            |   |            | 13,405    |            |   |            | 12,950    |           
|                                           | Other                                                                                                                                                                                    |                                                                                     |            | 185,543      |                 |   |            | 226,953   |            |   |            | 256,183   |            |   |            | 247,495   |           
|                                           |                                                                                                                                                                                          |                                                                                     |            |              |                 |   |            |           |            |   |            |          
|                                           |                                                                                                                                                                                          | Total Current Liabilities                                                           |            |              | 4,303,386       |   |            |           | 4,530,910  |   |            |           | 3,066,893  |   |            |           | 2,962,896  |  
|                                           |                                                                                                                                                                                          |                                                                                     |            |              |                 |   |            |           |            |   |            |          
|LONG-TERM LIABILITIES:                     |                                                                                                                                                                                          |                                                                                     |            |              |                 |   |            |           |            |   |            |           |            |   |            |          
|                                           | Bonds payable, net (Notes 2 and 8)                                                                                                                                                       |                                                                                     |            | 2,908,496    |                 |   |            | 2,261,868 |            |   |            | 2,891,843 |            |   |            | 2,793,781 |           
|                                           | Long-term borrowings (Note 9)                                                                                                                                                            |                                                                                     |            | 10,284       |                 |   |            | 1,633     |            |   |            |          |            |   |            |          |           
|                                           | Facility deposits (Note 10)                                                                                                                                                              |                                                                                     |            | 46,850       |                 |   |            | 44,197    |            |   |            | 31,440    |            |   |            | 30,374    |           
|                                           | Long-term payables  other, net of present value
    discount of W98,017 million, W85,881 million and
    W72,663 million at December 31, 2002, 2003 and 2004,
    respectively (Note 2) |                                                                                     |            | 551,983      |                 |   |            | 564,119   |            |   |            | 577,337   |            |   |            | 557,760   |           
|                                           | Obligations under capital leases (Notes 2, 11 and 12)                                                                                                                                    |                                                                                     |            | 121          |                 |   |            |          |            |   |            |          |            |   |            |          |           
|                                           | Accrued severance indemnities, net (Note 2)                                                                                                                                              |                                                                                     |            | 48,519       |                 |   |            | 67,824    |            |   |            | 80,984    |            |   |            | 78,238    |           
|                                           | Deferred income tax liabilities (Notes 2 and 17)                                                                                                                                         |                                                                                     |            | 104,770      |                 |   |            | 226,029   |            |   |            | 306,052   |            |   |            | 295,674   |           
|                                           | Long-term currency swap (Notes 2 and 23)                                                                                                                                                 |                                                                                     |            |             |                 |   |            |          |            |   |            | 96,743    |            |   |            | 93,462    |           
|                                           | Guarantee deposits received and other (Note 22)                                                                                                                                          |                                                                                     |            | 22,401       |                 |   |            | 27,790    |            |   |            | 26,322    |            |   |            | 25,429    |           
|                                           |                                                                                                                                                                                          |                                                                                     |            |              |                 |   |            |           |            |   |            |          
|                                           |                                                                                                                                                                                          | Total Long-Term Liabilities                                                         |            |              | 3,693,424       |   |            |           | 3,193,460  |   |            |           | 4,010,721  |   |            |           | 3,874,718  |  
|                                           |                                                                                                                                                                                          |                                                                                     |            |              |                 |   |            |           |            |   |            |          
|                                           |                                                                                                                                                                                          | Total Liabilities                                                                   |            |              | 7,996,810       |   |            |           | 7,724,370  |   |            |           | 7,077,614  |   |            |           | 6,837,614  |  
|                                           |                                                                                                                                                                                          |                                                                                     |            |              |                 |   |            |           |            |   |            |          
|COMMITMENTS AND CONTINGENCIES (Note 20)    |                                                                                                                                                                                          |                                                                                     |            |              |                 |   |            |           |            |   |            |           |            |   |            |          
|SHAREHOLDERS EQUITY:                      |                                                                                                                                                                                          |                                                                                     |            |              |                 |   |            |           |            |   |            |           |            |   |            |          
|                                           | Capital stock (Notes 1 and 13)                                                                                                                                                           |                                                                                     |            | 44,576       |                 |   |            | 44,639    |            |   |            | 44,639    |            |   |            | 43,125    |           
|                                           | Capital surplus (Note 13)                                                                                                                                                                |                                                                                     |            | 2,884,382    |                 |   |            | 2,911,556 |            |   |            | 2,968,301 |            |   |            | 2,867,647 |           
|                                           | Retained earnings (Note 14)                                                                                                                                                              |                                                                                     |            | 4,873,205    |                 |   |            | 5,139,911 |            |   |            | 6,152,898 |            |   |            | 5,944,255 |           
|                                           | Capital adjustments:                                                                                                                                                                     |                                                                                     |            |              |                 |   |            |           |            |   |            |           |            |   |            |           |           
|                                           |                                                                                                                                                                                          | Treasury stock (Note 15)                                                            |            |              | (2,192,449      | ) |            |           | (2,047,103 | ) |            |           | (2,047,105 | ) |            |           | (1,977,688 | )
|                                           |                                                                                                                                                                                          | Unrealized loss on valuation of long-term investment securities
    (Notes 2 and 3) |            |              | (104,117        | ) |            |           | (160,622   | ) |            |           | (92,975    | ) |            |           | (89,822    | )
|                                           |                                                                                                                                                                                          | Equity in capital adjustment of affiliates (Notes 2 and 4)                          |            |              | (5,171          | ) |            |           | 42,581     |   |            |           | 134,376    |   |            |           | 129,819    |  
|                                           |                                                                                                                                                                                          | Loss on valuation of currency swap (Notes 2 and 23)                                 |            |              |                |   |            |           |           |   |            |           | (49,452    | ) |            |           | (47,775    | )
|                                           |                                                                                                                                                                                          | Stock options (Notes 2 and 16)                                                      |            |              | 2,452           |   |            |           | 3,741      |   |            |           | 4,833      |   |            |           | 4,669      |  
|                                           |                                                                                                                                                                                          | Foreign-based operations translation adjustment
    (Note 2)                       |            |              | 3,515           |   |            |           | 3,159      |   |            |           | (7,969     | ) |            |           | (7,699     | )
|                                           | Minority interest in equity of consolidated subsidiaries
    (Note 2)                                                                                                                    |                                                                                     |            | 725,507      |                 |   |            | 155,985   |            |   |            | 98,198    |            |   |            | 94,868    |           
|                                           |                                                                                                                                                                                          |                                                                                     |            |              |                 |   |            |           |            |   |            |          
|                                           |                                                                                                                                                                                          | Total Shareholders Equity                                                          |            |              | 6,231,900       |   |            |           | 6,093,847  |   |            |           | 7,205,744  |   |            |           | 6,961,399  |  
|                                           |                                                                                                                                                                                          |                                                                                     |            |              |                 |   |            |           |            |   |            |          
|TOTAL LIABILITIES AND SHAREHOLDERS EQUITY |                                                                                                                                                                                          | W                                                                                   | 14,228,710 |              |                 | W | 13,818,217 |           |            | W | 14,283,358 |           |            | $ | 13,799,013 |          
|                                           |                                                                                                                                                                                          |                                                                                     |            |              |                 |   |            |           |            |   |            |          



F-6



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##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


CONSOLIDATED STATEMENTS OF INCOME


Years Ended December 31, 2002, 2003 and 2004


|                                        |                                                                   |                                       |           |            |                 |   |            |            |   |   |            |            |   |   |            |            |  
|--------------------------------------- | ----------------------------------------------------------------- | ------------------------------------- | --------- | ---------- | --------------- | - | ---------- | ---------- | - | - | ---------- | ---------- | - | - | ---------- | ---------- | -
|                                        |                                                                   | 2002                                  |           |            | 2003            |   |            | 2004       |   |   | 2004       |           
|                                        |                                                                   |                                       |           |            |                 |   |            |            |   |   |            |           
|                                        |                                                                   | In millions of Korean won, except for |           |            | In thousands of |  
|                                        |                                                                   | income per share                      |           |            | U.S. dollars,   |  
|                                        |                                                                   |                                       |           | except for |                
|                                        |                                                                   |                                       |           | income per |                
|                                        |                                                                   |                                       |           | share      |                
|                                        |                                                                   |                                       |           | (Note 2)   |                
|OPERATING REVENUE (Notes 2, 22 and 28)  |                                                                   | W                                     | 9,323,993 |            |                 | W | 10,272,081 |            |   | W | 10,570,615 |            |   | $ | 10,212,168 |           
|OPERATING EXPENSES (Notes 2, 20 and 22) |                                                                   |                                       |           |            |                 |   |            |            |   |   |            |            |   |   |            |           
|                                        | Labor cost                                                        |                                       |           | (318,346   | )               |   |            | (407,243   | ) |   |            | (464,778   | ) |   |            | (449,017   | )
|                                        | Commissions paid (Note 22)                                        |                                       |           | (1,964,797 | )               |   |            | (2,314,558 | ) |   |            | (2,812,318 | ) |   |            | (2,716,953 | )
|                                        | Depreciation and amortization (Notes 6 and 7)                     |                                       |           | (1,435,041 | )               |   |            | (1,510,545 | ) |   |            | (1,607,478 | ) |   |            | (1,552,969 | )
|                                        | Network interconnection (Note 28)                                 |                                       |           | (752,144   | )               |   |            | (771,553   | ) |   |            | (913,688   | ) |   |            | (882,705   | )
|                                        | Leased line                                                       |                                       |           | (280,113   | )               |   |            | (306,527   | ) |   |            | (375,227   | ) |   |            | (362,503   | )
|                                        | Advertising                                                       |                                       |           | (448,784   | )               |   |            | (376,424   | ) |   |            | (352,877   | ) |   |            | (340,911   | )
|                                        | Cost of goods sold                                                |                                       |           | (509,055   | )               |   |            | (560,859   | ) |   |            | (479,257   | ) |   |            | (463,006   | )
|                                        | Other                                                             |                                       |           | (818,070   | )               |   |            | (919,265   | ) |   |            | (1,125,243 | ) |   |            | (1,087,086 | )
|                                        |                                                                   |                                       |           |            |                 |   |            |            |   |   |            |           
|                                        | Sub-total                                                         |                                       |           | (6,526,350 | )               |   |            | (7,166,974 | ) |   |            | (8,130,866 | ) |   |            | (7,855,150 | )
|                                        |                                                                   |                                       |           |            |                 |   |            |            |   |   |            |           
|OPERATING INCOME                        |                                                                   |                                       | 2,797,643 |            |                 |   | 3,105,107  |            |   |   | 2,439,749  |            |   |   | 2,357,018  |           
|                                        |                                                                   |                                       |           |            |                 |   |            |            |   |   |            |           
|OTHER INCOME:                           |                                                                   |                                       |           |            |                 |   |            |            |   |   |            |            |   |   |            |           
|                                        | Interest                                                          |                                       |           | 86,013     |                 |   |            | 86,485     |   |   |            | 80,459     |   |   |            | 77,731     |  
|                                        | Dividends                                                         |                                       |           | 207        |                 |   |            | 25,923     |   |   |            | 23,843     |   |   |            | 23,034     |  
|                                        | Commissions                                                       |                                       |           | 73,515     |                 |   |            | 80,180     |   |   |            | 26,891     |   |   |            | 25,979     |  
|                                        | Foreign exchange and translation gains (Note 2)                   |                                       |           | 41,439     |                 |   |            | 6,131      |   |   |            | 20,559     |   |   |            | 19,862     |  
|                                        | Gain on disposal and valuation of trading securities
    (Note 2) |                                       |           | 11,893     |                 |   |            | 188        |   |   |            | 2,548      |   |   |            | 2,462      |  
|                                        | Gain on disposal of property, equipment and intangible assets     |                                       |           | 1,206      |                 |   |            | 2,750      |   |   |            | 2,067      |   |   |            | 1,997      |  
|                                        | Gain on transaction of currency swap (Notes 2 and 23)             |                                       |           |           |                 |   |            |           |   |   |            | 2,850      |   |   |            | 2,753      |  
|                                        | Equity in earnings of affiliates (Notes 2 and 4)                  |                                       |           | 813        |                 |   |            |           |   |   |            |           |   |   |            |           |  
|                                        | Other                                                             |                                       |           | 44,070     |                 |   |            | 59,787     |   |   |            | 40,202     |   |   |            | 38,839     |  
|                                        |                                                                   |                                       |           |            |                 |   |            |            |   |   |            |           
|                                        |                                                                   |                                       | 259,156   |            |                 |   | 261,444    |            |   |   | 199,419    |            |   |   | 192,657    |           
|                                        |                                                                   |                                       |           |            |                 |   |            |            |   |   |            |           

F-7



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##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


CONSOLIDATED STATEMENTS OF
INCOME  (Continued)


Years Ended December 31, 2002, 2003 and 2004


|                                                                           |                                                                                                  |                                       |           |            |                 |   |           |          |   |   |           |          |   |   |           |          |  
|-------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------ | ------------------------------------- | --------- | ---------- | --------------- | - | --------- | -------- | - | - | --------- | -------- | - | - | --------- | -------- | -
|                                                                           |                                                                                                  | 2002                                  |           |            | 2003            |   |           | 2004     |   |   | 2004      |         
|                                                                           |                                                                                                  |                                       |           |            |                 |   |           |          |   |   |           |         
|                                                                           |                                                                                                  | In millions of Korean won, except for |           |            | In thousands of |  
|                                                                           |                                                                                                  | income per share                      |           |            | U.S. dollars,   |  
|                                                                           |                                                                                                  |                                       |           | except for |                
|                                                                           |                                                                                                  |                                       |           | income per |                
|                                                                           |                                                                                                  |                                       |           | share      |                
|                                                                           |                                                                                                  |                                       |           | (Note 2)   |                
|OTHER EXPENSES:                                                            |                                                                                                  |                                       |           |            |                 |   |           |          |   |   |           |          |   |   |           |         
|                                                                           | Interest and discounts                                                                           |                                       |           | (311,132   | )               |   |           | (391,482 | ) |   |           | (303,410 | ) |   |           | (293,121 | )
|                                                                           | Donations                                                                                        |                                       |           | (127,517   | )               |   |           | (91,487  | ) |   |           | (89,232  | ) |   |           | (86,206  | )
|                                                                           | Foreign exchange and translation losses (Note 2)                                                 |                                       |           | (13,547    | )               |   |           | (10,230  | ) |   |           | (9,074   | ) |   |           | (8,766   | )
|                                                                           | Loss on disposal and valuation of trading securities
    (Note 2)                                |                                       |           |           |                 |   |           | (3,974   | ) |   |           | (232     | ) |   |           | (224     | )
|                                                                           | Loss on disposal and impairment of property, equipment and
    intangible assets (Notes 2 and 3) |                                       |           | (221,681   | )               |   |           | (13,784  | ) |   |           | (19,208  | ) |   |           | (18,557  | )
|                                                                           | Loss on impairment of long-term investment securities
    (Notes 2, 3 and 27)                    |                                       |           | (68,882    | )               |   |           | (5,749   | ) |   |           | (33,654  | ) |   |           | (32,513  | )
|                                                                           | Loss on disposal of investment assets                                                            |                                       |           | (51,618    | )               |   |           | (45,403  | ) |   |           | (1,539   | ) |   |           | (1,487   | )
|                                                                           | Loss on transaction and valuation of currency swap (Notes 2
    and 23)                          |                                       |           |           |                 |   |           |         |   |   |           | (15,818  | ) |   |           | (15,282  | )
|                                                                           | Equity in losses of affiliates (Notes 2 and 4)                                                   |                                       |           |           |                 |   |           | (6,975   | ) |   |           | (11,954  | ) |   |           | (11,549  | )
|                                                                           | Other                                                                                            |                                       |           | (44,158    | )               |   |           | (43,131  | ) |   |           | (31,872  | ) |   |           | (30,792  | )
|                                                                           |                                                                                                  |                                       |           |            |                 |   |           |          |   |   |           |         
|                                                                           |                                                                                                  |                                       | (838,535  | )          |                 |   | (612,215  | )        |   |   | (515,993  | )        |   |   | (498,497  | )       
|                                                                           |                                                                                                  |                                       |           |            |                 |   |           |          |   |   |           |         
|ORDINARY INCOME                                                            |                                                                                                  |                                       | 2,218,264 |            |                 |   | 2,754,336 |          |   |   | 2,123,175 |          |   |   | 2,051,178 |         
|EXTRAORDINARY GAIN                                                         |                                                                                                  |                                       | 504       |            |                 |   |          |          |   |   |          |          |   |   |          |         
|                                                                           |                                                                                                  |                                       |           |            |                 |   |           |          |   |   |           |         
|                                                                           |                                                                                                  |                                       |           |            |                 |   | .         |          |   |   |           |          |   |   |           |         
|INCOME BEFORE INCOME TAXES AND MINORITY INTEREST                           |                                                                                                  |                                       | 2,218,768 |            |                 |   | 2,754,336 |          |   |   | 2,123,175 |          |   |   | 2,051,178 |         
|INCOME TAXES (Notes 2 and 17)                                              |                                                                                                  |                                       | (698,507  | )          |                 |   | (789,059  | )        |   |   | (629,761  | )        |   |   | (608,406  | )       
|                                                                           |                                                                                                  |                                       |           |            |                 |   |           |          |   |   |           |         
|INCOME BEFORE MINORITY INTEREST                                            |                                                                                                  |                                       | 1,520,261 |            |                 |   | 1,965,277 |          |   |   | 1,493,414 |          |   |   | 1,442,772 |         
|MINORITY INTEREST IN NET LOSS (GAIN) OF CONSOLIDATED
    SUBSIDIARIES      |                                                                                                  |                                       | (33,110   | )          |                 |   | 823       |          |   |   | (1,935    | )        |   |   | (1,869    | )       
|                                                                           |                                                                                                  |                                       |           |            |                 |   |           |          |   |   |           |         
|NET INCOME                                                                 |                                                                                                  | W                                     | 1,487,151 |            |                 | W | 1,966,100 |          |   | W | 1,491,479 |          |   | $ | 1,440,903 |         
|                                                                           |                                                                                                  |                                       |           |            |                 |   |           |          |   |   |           |         
|NET INCOME PER SHARE (Notes 2 and 18) (In Korean
    won and U.S. dollars) |                                                                                                  | W                                     | 17,647    |            |                 | W | 26,187    |          |   | W | 20,261    |          |   | $ | 19.57     |         
|                                                                           |                                                                                                  |                                       |           |            |                 |   |           |          |   |   |           |         



F-8



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##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


CONSOLIDATED STATEMENTS OF SHAREHOLDERS EQUITY


Years Ended December 31, 2002, 2003 and 2004


|                           |                                                                                     |                             |        |    |         |   |           |          |   |   |             |            |   |          |            |            |               |   |         |          |   |   |           |            |  
|-------------------------- | ----------------------------------------------------------------------------------- | --------------------------- | ------ | -- | ------- | - | --------- | -------- | - | - | ----------- | ---------- | - | -------- | ---------- | ---------- | ------------- | - | ------- | -------- | - | - | --------- | ---------- | -
|                           |                                                                                     | Common                      |        |    | Capital |   |           | Retained |   |   | Capital     |            |   | Minority |            |            | Shareholders |  
|                           |                                                                                     | Stock                       |        |    | Surplus |   |           | Earnings |   |   | Adjustments |            |   | Interest |            |            | Equity        |  
|                           |                                                                                     |                             |        |    |         |   |           |          |   |   |             |            |   |          |            |            |               |  
|                           |                                                                                     | (In millions of Korean won) |       
|Balance, January 1, 2002   |                                                                                     | W                           | 44,576 |    |         | W | 3,449,698 |          |   | W | 3,443,319   |            |   | W        | (1,492,634 | )          |               | W | 704,345 |          |   | W | 6,149,304 |           
|                           | Net income                                                                          |                             |        |   |         |   |           |         |   |   |             | 1,487,151  |   |          |            |           |               |   |         |         |   |   |           | 1,487,151  |  
|                           | Treasury stock transactions (Notes 13 and 15)                                       |                             |        |   |         |   |           | 81,984   |   |   |             |           |   |          |            | (766,597   | )             |   |         |         |   |   |           | (684,613   | )
|                           | Cash dividends paid (Note 19)                                                       |                             |        |   |         |   |           |         |   |   |             | (57,265    | ) |          |            |           |               |   |         |         |   |   |           | (57,265    | )
|                           | Excess unallocated purchase price (Note 13)                                         |                             |        |   |         |   |           | (647,025 | ) |   |             |           |   |          |            |           |               |   |         |         |   |   |           | (647,025   | )
|                           | Unrealized loss on valuation of long-term investment securities
    (Notes 2 and 3) |                             |        |   |         |   |           |         |   |   |             |           |   |          |            | (28,327    | )             |   |         |         |   |   |           | (28,327    | )
|                           | Equity in capital surplus and capital adjustment changes of
    affiliates (Note 2) |                             |        |   |         |   |           | (275     | ) |   |             |           |   |          |            | (12,513    | )             |   |         |         |   |   |           | (12,788    | )
|                           | Stock compensation plans (Notes 2 and 16)                                           |                             |        |   |         |   |           |         |   |   |             |           |   |          |            | 1,492      |               |   |         |         |   |   |           | 1,492      |  
|                           | Foreign-based operations translation adjustment
    (Note 2)                       |                             |        |   |         |   |           |         |   |   |             |           |   |          |            | 2,809      |               |   |         |         |   |   |           | 2,809      |  
|                           | Increase in minority interest in equity of consolidated
    subsidiaries            |                             |        |   |         |   |           |         |   |   |             |           |   |          |            |           |               |   |         | 21,162   |   |   |           | 21,162     |  
|                           |                                                                                     |                             |        |    |         |   |           |          |   |   |             |            |   |          |            |            |               |  
|Balance, December 31, 2002 |                                                                                     |                             | 44,576 |    |         |   | 2,884,382 |          |   |   | 4,873,205   |            |   |          | (2,295,770 | )          |               |   | 725,507 |          |   |   | 6,231,900 |           
|                           |                                                                                     |                             |        |    |         |   |           |          |   |   |             |            |   |          |            |            |               |  
|                           | Net income                                                                          |                             |        |   |         |   |           |         |   |   |             | 1,966,100  |   |          |            |           |               |   |         |         |   |   |           | 1,966,100  |  
|                           | Acquisition of treasury stock (Note 15)                                             |                             |        |   |         |   |           |         |   |   |             |           |   |          |            | (1,379,337 | )             |   |         |         |   |   |           | (1,379,337 | )
|                           | Retirement of treasury stock (Note 15)                                              |                             |        |   |         |   |           |         |   |   |             | (1,545,281 | ) |          |            | 1,524,683  |               |   |         |         |   |   |           | (20,598    | )
|                           | Cash dividends paid (Note 19)                                                       |                             |        |   |         |   |           |         |   |   |             | (151,739   | ) |          |            |           |               |   |         |         |   |   |           | (151,739   | )
|                           | Excess unallocated purchase price (Note 13)                                         |                             |        |   |         |   |           | (230     | ) |   |             |           |   |          |            |           |               |   |         |         |   |   |           | (230       | )
|                           | Issuance of common stock for the merger with SK IMT Co., Ltd.
    (Note 13)         |                             |        | 63 |         |   |           | 31,809   |   |   |             |           |   |          |            |           |               |   |         |         |   |   |           | 31,872     |  
|                           | Gain on disposal of investments in common stock of subsidiary                       |                             |        |   |         |   |           | 58       |   |   |             |           |   |          |            |           |               |   |         |         |   |   |           | 58         |  
|                           | Equity in beginning retained earnings change of affiliates
    (Notes 2 and 4)      |                             |        |   |         |   |           |         |   |   |             | (33        | ) |          |            |           |               |   |         |         |   |   |           | (33        | )
|                           | Cumulative effect of an accounting change (Note 2)                                  |                             |        |   |         |   |           |         |   |   |             | (2,341     | ) |          |            |           |               |   |         | (515     | ) |   |           | (2,856     | )
|                           | Unrealized loss on valuation of long-term investment securities
    (Notes 2 and 3) |                             |        |   |         |   |           |         |   |   |             |           |   |          |            | (56,505    | )             |   |         |         |   |   |           | (56,505    | )
|                           | Equity in capital surplus and capital adjustment changes of
    affiliates (Note 2) |                             |        |   |         |   |           | (4,463   | ) |   |             |           |   |          |            | 47,752     |               |   |         |         |   |   |           | 43,289     |  
|                           | Stock compensation plans (Notes 2 and 16)                                           |                             |        |   |         |   |           |         |   |   |             |           |   |          |            | 1,289      |               |   |         |         |   |   |           | 1,289      |  
|                           | Foreign-based operations translation adjustment
    (Note 2)                       |                             |        |   |         |   |           |         |   |   |             |           |   |          |            | (356       | )             |   |         |         |   |   |           | (356       | )
|                           | Decrease in minority interest in equity of consolidated
    subsidiaries            |                             |        |   |         |   |           |         |   |   |             |           |   |          |            |           |               |   |         | (569,007 | ) |   |           | (569,007   | )
|                           |                                                                                     |                             |        |    |         |   |           |          |   |   |             |            |   |          |            |            |               |  
|Balance, December 31, 2003 |                                                                                     |                             | 44,639 |    |         |   | 2,911,556 |          |   |   | 5,139,911   |            |   |          | (2,158,244 | )          |               |   | 155,985 |          |   |   | 6,093,847 |           
|                           |                                                                                     |                             |        |    |         |   |           |          |   |   |             |            |   |          |            |            |               |  

F-9



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##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


CONSOLIDATED STATEMENTS OF SHAREHOLDERS
EQUITY  (Continued)


Years Ended December 31, 2002, 2003 and 2004


|                           |                                                                                     |                                         |        |   |         |   |           |          |   |   |             |           |   |          |            |         |               |   |         |         |   |   |           |           |  
|-------------------------- | ----------------------------------------------------------------------------------- | --------------------------------------- | ------ | - | ------- | - | --------- | -------- | - | - | ----------- | --------- | - | -------- | ---------- | ------- | ------------- | - | ------- | ------- | - | - | --------- | --------- | -
|                           |                                                                                     | Common                                  |        |   | Capital |   |           | Retained |   |   | Capital     |           |   | Minority |            |         | Shareholders |  
|                           |                                                                                     | Stock                                   |        |   | Surplus |   |           | Earnings |   |   | Adjustments |           |   | Interest |            |         | Equity        |  
|                           |                                                                                     |                                         |        |   |         |   |           |          |   |   |             |           |   |          |            |         |               |  
|                           |                                                                                     | (In millions of Korean won)             |       
|Balance, January 1, 2004   |                                                                                     |                                         | 44,639 |   |         |   | 2,911,556 |          |   |   | 5,139,911   |           |   |          | (2,158,244 | )       |               |   | 155,985 |         |   |   | 6,093,847 |          
|                           | Net income                                                                          |                                         |        |  |         |   |           |          |   |   |             | 1,491,479 |   |          |            |        |               |   |         |        |   |   |           | 1,491,479 |  
|                           | Cash dividends paid (Note 19)                                                       |                                         |        |  |         |   |           |         |   |   |             | (404,878  | ) |          |            |        |               |   |         |        |   |   |           | (404,878  | )
|                           | Cash dividends paid (interim) (Note 19)                                             |                                         |        |  |         |   |           |         |   |   |             | (73,614   | ) |          |            |        |               |   |         |        |   |   |           | (73,614   | )
|                           | Excess unallocated purchase price (Note 13)                                         |                                         |        |  |         |   |           | (77      | ) |   |             |          |   |          |            |        |               |   |         |        |   |   |           | (77       | )
|                           | Consideration for conversion rights (Notes 2 and 13)                                |                                         |        |  |         |   |           | 67,279   |   |   |             |          |   |          |            |        |               |   |         |        |   |   |           | 67,279    |  
|                           | Acquisition of treasury stock (Note 15)                                             |                                         |        |  |         |   |           |         |   |   |             |          |   |          |            | (2      | )             |   |         |        |   |   |           | (2        | )
|                           | Equity in capital surplus and capital adjustment changes of
    affiliates (Note 2) |                                         |        |  |         |   |           | (10,457  | ) |   |             |          |   |          |            | 91,795  |               |   |         |        |   |   |           | 81,338    |  
|                           | Unrealized gain on valuation of long-term investment securities
    (Notes 2 and 3) |                                         |        |  |         |   |           |         |   |   |             |          |   |          |            | 67,647  |               |   |         |        |   |   |           | 67,647    |  
|                           | Loss on valuation of currency swap                                                  |                                         |        |  |         |   |           |         |   |   |             |          |   |          |            | (49,452 | )             |   |         |        |   |   |           | (49,452   | )
|                           | Stock compensation plans (Notes 2 and 16)                                           |                                         |        |  |         |   |           |         |   |   |             |          |   |          |            | 1,092   |               |   |         |        |   |   |           | 1,092     |  
|                           | Foreign-based operations translation adjustment
    (Note 2)                       |                                         |        |  |         |   |           |         |   |   |             |          |   |          |            | (11,128 | )             |   |         |        |   |   |           | (11,128   | )
|                           | Decrease in minority interest in equity of consolidated
    subsidiaries            |                                         |        |  |         |   |           |         |   |   |             |          |   |          |            |        |               |   |         | (57,787 | ) |   |           | (57,787   | )
|                           |                                                                                     |                                         |        |   |         |   |           |          |   |   |             |           |   |          |            |         |               |  
|Balance, December 31, 2004 |                                                                                     | W                                       | 44,639 |   |         | W | 2,968,301 |          |   | W | 6,152,898   |           |   | W        | (2,058,292 | )       |               | W | 98,198  |         |   | W | 7,205,744 |          
|                           |                                                                                     |                                         |        |   |         |   |           |          |   |   |             |           |   |          |            |         |               |  
|                           |                                                                                     | (In thousands of U.S. dollars) (Note 2)
|Balance, January 1, 2004   |                                                                                     | $                                       | 43,125 |   |         | $ | 2,812,826 |          |   | $ | 4,965,618   |           |   | $        | (2,085,058 | )       |               | $ | 150,696 |         |   | $ | 5,887,207 |          
|                           | Net income                                                                          |                                         |        |  |         |   |           |         |   |   |             | 1,440,903 |   |          |            |        |               |   |         |        |   |   |           | 1,440,903 |  
|                           | Cash dividends paid                                                                 |                                         |        |  |         |   |           |         |   |   |             | (391,149  | ) |          |            |        |               |   |         |        |   |   |           | (391,149  | )
|                           | Cash dividends paid (interim)                                                       |                                         |        |  |         |   |           |         |   |   |             | (71,117   | ) |          |            |        |               |   |         |        |   |   |           | (71,117   | )
|                           | Excess unallocated purchase price                                                   |                                         |        |  |         |   |           | (74      | ) |   |             |          |   |          |            |        |               |   |         |        |   |   |           | (74       | )
|                           | Consideration for conversion rights                                                 |                                         |        |  |         |   |           | 64,998   |   |   |             |          |   |          |            |        |               |   |         |        |   |   |           | 64,998    |  
|                           | Acquisition of treasury stock                                                       |                                         |        |  |         |   |           |         |   |   |             |          |   |          |            | (2      | )             |   |         |        |   |   |           | (2        | )
|                           | Equity in capital surplus and capital adjustment changes of
    affiliates          |                                         |        |  |         |   |           | (10,103  | ) |   |             |          |   |          |            | 88,682  |               |   |         |        |   |   |           | 78,579    |  
|                           | Unrealized gain on valuation of long-term investment securities                     |                                         |        |  |         |   |           |         |   |   |             |          |   |          |            | 65,353  |               |   |         |        |   |   |           | 65,353    |  
|                           | Loss on valuation of currency swap                                                  |                                         |        |  |         |   |           |         |   |   |             |          |   |          |            | (47,775 | )             |   |         |        |   |   |           | (47,775   | )
|                           | Stock compensation plans                                                            |                                         |        |  |         |   |           |         |   |   |             |          |   |          |            | 1,055   |               |   |         |        |   |   |           | 1,055     |  
|                           | Foreign-based operations translation adjustment                                    |                                         |        |  |         |   |           |         |   |   |             |          |   |          |            | (10,751 | )             |   |         |        |   |   |           | (10,751   | )
|                           | Decrease in minority interest in equity of consolidated
    subsidiaries            |                                         |        |  |         |   |           |         |   |   |             |          |   |          |            |        |               |   |         | (55,828 | ) |   |           | (55,828   | )
|                           |                                                                                     |                                         |        |   |         |   |           |          |   |   |             |           |   |          |            |         |               |  
|Balance, December 31, 2004 |                                                                                     | $                                       | 43,125 |   |         | $ | 2,867,647 |          |   | $ | 5,944,255   |           |   | $        | (1,988,496 | )       |               | $ | 94,868  |         |   | $ | 6,961,399 |          
|                           |                                                                                     |                                         |        |   |         |   |           |          |   |   |             |           |   |          |            |         |               |  



F-10



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##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


CONSOLIDATED STATEMENTS OF CASH FLOWS


Years Ended December 31, 2002, 2003 AND 2004


|                                      |                                       |                                                                                  |   |                 |              |   |   |           |           |   |      |           |           |   |   |           |           |  
|------------------------------------- | ------------------------------------- | -------------------------------------------------------------------------------- | - | --------------- | ------------ | - | - | --------- | --------- | - | ---- | --------- | --------- | - | - | --------- | --------- | -
|                                      |                                       | 2002                                                                             |   |                 | 2003         |   |   | 2004      |           |   | 2004 |          
|                                      |                                       |                                                                                  |   |                 |              |   |   |           |           |   |      |          
|                                      |                                       | In millions of Korean won                                                        |   |                 | In thousands |  
|                                      |                                       |                                                                                  |   | of U.S. dollars |             
|                                      |                                       |                                                                                  |   | (Note 2)        |             
|CASH FLOWS FROM OPERATING ACTIVITIES: |                                       |                                                                                  |   |                 |              |   |   |           |           |   |      |           |           |   |   |          
|                                      | Net income                            |                                                                                  | W | 1,487,151       |              |   | W | 1,966,100 |           |   | W    | 1,491,479 |           |   | $ | 1,440,903 |          
|                                      |                                       |                                                                                  |   |                 |              |   |   |           |           |   |      |          
|                                      | Expenses not involving cash payments: |                                                                                  |   |                 |              |   |   |           |           |   |      |           |           |   |   |           |          
|                                      |                                       | Depreciation and amortization                                                    |   |                 | 1,543,335    |   |   |           | 1,649,902 |   |      |           | 1,752,530 |   |   |           | 1,693,102 |  
|                                      |                                       | Provision for severance indemnities                                              |   |                 | 45,509       |   |   |           | 65,375    |   |      |           | 58,151    |   |   |           | 56,179    |  
|                                      |                                       | Provision for bad debts                                                          |   |                 | 20,981       |   |   |           | 23,304    |   |      |           | 43,144    |   |   |           | 41,681    |  
|                                      |                                       | Foreign currency translation loss                                                |   |                 | 5,397        |   |   |           | 2,546     |   |      |           | 2,179     |   |   |           | 2,105     |  
|                                      |                                       | Loss on disposal and valuation of trading securities                             |   |                 |             |   |   |           | 3,974     |   |      |           | 232       |   |   |           | 224       |  
|                                      |                                       | Loss on disposal and impairment of property, equipment and
    intangible assets |   |                 | 221,681      |   |   |           | 13,784    |   |      |           | 19,208    |   |   |           | 18,557    |  
|                                      |                                       | Loss on impairment of long-term investment securities                            |   |                 | 68,882       |   |   |           | 5,749     |   |      |           | 33,654    |   |   |           | 32,513    |  
|                                      |                                       | Loss on disposal of investment assets                                            |   |                 | 51,618       |   |   |           | 45,403    |   |      |           | 1,539     |   |   |           | 1,487     |  
|                                      |                                       | Loss on transaction and valuation of currency swap                               |   |                 |             |   |   |           |          |   |      |           | 15,818    |   |   |           | 15,282    |  
|                                      |                                       | Equity in losses of affiliates                                                   |   |                 |             |   |   |           | 6,975     |   |      |           | 11,954    |   |   |           | 11,549    |  
|                                      |                                       | Minority interest in net gain of consolidated subsidiaries                       |   |                 | 33,110       |   |   |           |          |   |      |           | 1,935     |   |   |           | 1,869     |  
|                                      |                                       | Amortization of discounts on bonds and other                                     |   |                 | 51,630       |   |   |           | 73,655    |   |      |           | 46,274    |   |   |           | 44,704    |  
|                                      |                                       |                                                                                  |   |                 |              |   |   |           |           |   |      |          
|                                      |                                       | Sub-total                                                                        |   |                 | 2,042,143    |   |   |           | 1,890,667 |   |      |           | 1,986,618 |   |   |           | 1,919,252 |  
|                                      |                                       |                                                                                  |   |                 |              |   |   |           |           |   |      |          
|                                      | Income not involving cash receipts:   |                                                                                  |   |                 |              |   |   |           |           |   |      |           |           |   |   |           |          
|                                      |                                       | Reversal of allowance for doubtful accounts                                      |   |                 | (6,365       | ) |   |           | (1,555    | ) |      |           | (759      | ) |   |           | (733      | )
|                                      |                                       | Foreign currency translation gain                                                |   |                 | (30,282      | ) |   |           | (668      | ) |      |           | (3,367    | ) |   |           | (3,253    | )
|                                      |                                       | Gain on disposal and valuation of trading securities                             |   |                 | (11,893      | ) |   |           | (188      | ) |      |           | (2,548    | ) |   |           | (2,462    | )
|                                      |                                       | Gain on disposal of property, equipment and intangible assets                    |   |                 | (1,206       | ) |   |           | (2,750    | ) |      |           | (2,067    | ) |   |           | (1,997    | )
|                                      |                                       | Gain on transaction of currency swap                                             |   |                 |             |   |   |           |          |   |      |           | (2,850    | ) |   |           | (2,753    | )
|                                      |                                       | Equity in earnings of affiliates                                                 |   |                 | (813         | ) |   |           |          |   |      |           |          |   |   |           |          |  
|                                      |                                       | Minority interest in net loss of consolidated subsidiaries                       |   |                 |             |   |   |           | (823      | ) |      |           |          |   |   |           |          |  
|                                      |                                       | Other                                                                            |   |                 | (7,812       | ) |   |           | (14,046   | ) |      |           | (14,133   | ) |   |           | (13,654   | )
|                                      |                                       |                                                                                  |   |                 |              |   |   |           |           |   |      |          
|                                      |                                       | Sub-total                                                                        |   |                 | (58,371      | ) |   |           | (20,030   | ) |      |           | (25,724   | ) |   |           | (24,852   | )
|                                      |                                       |                                                                                  |   |                 |              |   |   |           |           |   |      |          

F-11



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##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


CONSOLIDATED STATEMENTS OF CASH
FLOWS  (Continued)


Years Ended December 31, 2002, 2003 AND 2004


|                                                                       |                                                                                     |                           |           |                 |              |  |           |          |   |  |           |          |   |  |           |          |  
|---------------------------------------------------------------------- | ----------------------------------------------------------------------------------- | ------------------------- | --------- | --------------- | ------------ |  | --------- | -------- | - |  | --------- | -------- | - |  | --------- | -------- | -
|                                                                       |                                                                                     | 2002                      |           |                 | 2003         |  |           | 2004     |   |  | 2004      |         
|                                                                       |                                                                                     |                           |           |                 |              |  |           |          |   |  |           |         
|                                                                       |                                                                                     | In millions of Korean won |           |                 | In thousands | 
|                                                                       |                                                                                     |                           |           | of U.S. dollars |             
|                                                                       |                                                                                     |                           |           | (Note 2)        |             
|Changes in assets and liabilities related to operating
    activities: |                                                                                     |                           |           |                 |              |  |           |          |   |  |           |          |   |  |           |         
|                                                                       | Accounts receivable  trade                                                         |                           |           | (277,685        | )            |  |           | (159,160 | ) |  |           | (170,891 | ) |  |           | (165,096 | )
|                                                                       | Accounts receivable  other                                                         |                           |           | 224,640         |              |  |           | (48,789  | ) |  |           | (552,343 | ) |  |           | (533,613 | )
|                                                                       | Inventories                                                                         |                           |           | 39,092          |              |  |           | (4,056   | ) |  |           | (20,982  | ) |  |           | (20,271  | )
|                                                                       | Other current assets                                                                |                           |           | (30,764         | )            |  |           | (30,417  | ) |  |           | (5,549   | ) |  |           | (5,360   | )
|                                                                       | Accounts payable                                                                    |                           |           | 614,005         |              |  |           | (396,700 | ) |  |           | (90,977  | ) |  |           | (87,892  | )
|                                                                       | Income taxes payable                                                                |                           |           | 12,946          |              |  |           | (11,597  | ) |  |           | (125,430 | ) |  |           | (121,177 | )
|                                                                       | Accrued expenses                                                                    |                           |           | 67,026          |              |  |           | 24,385   |   |  |           | (26,622  | ) |  |           | (25,719  | )
|                                                                       | Current portion of facility deposits                                                |                           |           | 3,801           |              |  |           | (3,418   | ) |  |           | 2,580    |   |  |           | 2,493    |  
|                                                                       | Other current liabilities                                                           |                           |           | 125,767         |              |  |           | 49,194   |   |  |           | 22,608   |   |  |           | 21,841   |  
|                                                                       | Deferred income taxes                                                               |                           |           | 81,963          |              |  |           | 120,879  |   |  |           | 78,356   |   |  |           | 75,699   |  
|                                                                       | Severance indemnity payments                                                        |                           |           | (20,378         | )            |  |           | (24,516  | ) |  |           | (27,582  | ) |  |           | (26,647  | )
|                                                                       | Deposits for group severance indemnities and other deposits                         |                           |           | (43,521         | )            |  |           | (24,727  | ) |  |           | (19,489  | ) |  |           | (18,828  | )
|                                                                       | Transfer of accrued severance indemnities from affiliates and
    related companies |                           |           |                |              |  |           | 955      |   |  |           |         |   |  |           |         |  
|                                                                       |                                                                                     |                           |           |                 |              |  |           |          |   |  |           |         
|                                                                       | Sub-total                                                                           |                           |           | 796,892         |              |  |           | (507,967 | ) |  |           | (936,321 | ) |  |           | (904,570 | )
|                                                                       |                                                                                     |                           |           |                 |              |  |           |          |   |  |           |         
|Net Cash Provided by Operating Activities                              |                                                                                     |                           | 4,267,815 |                 |              |  | 3,328,770 |          |   |  | 2,516,052 |          |   |  | 2,430,733 |         
|                                                                       |                                                                                     |                           |           |                 |              |  |           |          |   |  |           |         

F-12



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##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


CONSOLIDATED STATEMENTS OF CASH
FLOWS  (Continued)


Years Ended December 31, 2002, 2003 AND 2004


|                                      |                                                                                   |                           |   |                 |              |  |   |            |   |  |      |            |   |  |   |            |  
|------------------------------------- | --------------------------------------------------------------------------------- | ------------------------- | - | --------------- | ------------ |  | - | ---------- | - |  | ---- | ---------- | - |  | - | ---------- | -
|                                      |                                                                                   | 2002                      |   |                 | 2003         |  |   | 2004       |   |  | 2004 |           
|                                      |                                                                                   |                           |   |                 |              |  |   |            |   |  |      |           
|                                      |                                                                                   | In millions of Korean won |   |                 | In thousands | 
|                                      |                                                                                   |                           |   | of U.S. dollars |             
|                                      |                                                                                   |                           |   | (Note 2)        |             
|CASH FLOWS FROM INVESTING ACTIVITIES: |                                                                                   |                           |   |                 |              |  |   |            |   |  |      |            |   |  |   |           
|                                      | Decrease in short-term financial instruments                                      |                           | W | 231,219         |              |  | W | 95,123     |   |  | W    | 90,034     |   |  | $ | 86,981     |  
|                                      | Decrease (increase) in trading securities                                         |                           |   | (103,256        | )            |  |   | (137,618   | ) |  |      | 240,204    |   |  |   | 232,059    |  
|                                      | Decrease (increase) in short-term loans                                           |                           |   | 24,474          |              |  |   | (8,533     | ) |  |      | 33,019     |   |  |   | 31,899     |  
|                                      | Decrease (increase) in long-term bank deposits                                    |                           |   | 21              |              |  |   | (350       | ) |  |      | (9,999     | ) |  |   | (9,660     | )
|                                      | Proceeds from sale of current portion of long-term investment
    securities      |                           |   |                |              |  |   | 70,267     |   |  |      | 85,861     |   |  |   | 82,949     |  
|                                      | Proceeds from sale of long-term investment securities                             |                           |   | 1,084,945       |              |  |   | 762,896    |   |  |      | 17,658     |   |  |   | 17,059     |  
|                                      | Proceeds from sale of equity securities accounted for using the
    equity method |                           |   | 53,230          |              |  |   | 3,510      |   |  |      | 1,023      |   |  |   | 988        |  
|                                      | Decrease in long-term loans                                                       |                           |   | 19,920          |              |  |   | 9,980      |   |  |      | 4,746      |   |  |   | 4,585      |  
|                                      | Decrease in guarantee deposits                                                    |                           |   | 77,490          |              |  |   | 67,410     |   |  |      | 22,096     |   |  |   | 21,347     |  
|                                      | Proceeds from disposal of property and equipment                                  |                           |   | 23,211          |              |  |   | 12,828     |   |  |      | 10,116     |   |  |   | 9,773      |  
|                                      | Proceeds from disposal of intangible assets                                       |                           |   | 1,198           |              |  |   | 2,248      |   |  |      | 2,291      |   |  |   | 2,213      |  
|                                      | Acquisition of long-term investment securities                                    |                           |   | (2,062,355      | )            |  |   | (437,076   | ) |  |      | (54,132    | ) |  |   | (52,296    | )
|                                      | Acquisition of equity securities accounted for using the equity
    method        |                           |   | (208,913        | )            |  |   | (7,158     | ) |  |      | (21,086    | ) |  |   | (20,371    | )
|                                      | Increase in long-term loans                                                       |                           |   | (24,376         | )            |  |   | (15,578    | ) |  |      | (35,291    | ) |  |   | (34,094    | )
|                                      | Increase in guarantee deposits                                                    |                           |   | (55,986         | )            |  |   | (88,223    | ) |  |      | (40,957    | ) |  |   | (39,568    | )
|                                      | Increase in other non-current assets                                              |                           |   | (22,022         | )            |  |   | (3,332     | ) |  |      | (46,556    | ) |  |   | (44,976    | )
|                                      | Acquisition of property and equipment                                             |                           |   | (2,024,655      | )            |  |   | (1,647,639 | ) |  |      | (1,631,941 | ) |  |   | (1,576,602 | )
|                                      | Acquisition of intangible assets                                                  |                           |   | (77,580         | )            |  |   | (56,745    | ) |  |      | (72,376    | ) |  |   | (69,922    | )
|                                      | Acquisition of minority interest                                                  |                           |   |                |              |  |   | (36,442    | ) |  |      | (64,247    | ) |  |   | (62,068    | )
|                                      |                                                                                   |                           |   |                 |              |  |   |            |   |  |      |           
|                                      | Net Cash Used in Investing Activities                                             |                           |   | (3,063,435      | )            |  |   | (1,414,432 | ) |  |      | (1,469,537 | ) |  |   | (1,419,704 | )
|                                      |                                                                                   |                           |   |                 |              |  |   |            |   |  |      |           

F-13



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##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


CONSOLIDATED STATEMENTS OF CASH
FLOWS  (Continued)


Years Ended December 31, 2002, 2003 AND 2004


|                                                                                                     |                                                                          |                           |          |                 |              |   |          |            |   |   |         |            |   |   |         |            |  
|---------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------ | ------------------------- | -------- | --------------- | ------------ | - | -------- | ---------- | - | - | ------- | ---------- | - | - | ------- | ---------- | -
|                                                                                                     |                                                                          | 2002                      |          |                 | 2003         |   |          | 2004       |   |   | 2004    |           
|                                                                                                     |                                                                          |                           |          |                 |              |   |          |            |   |   |         |           
|                                                                                                     |                                                                          | In millions of Korean won |          |                 | In thousands |  
|                                                                                                     |                                                                          |                           |          | of U.S. dollars |             
|                                                                                                     |                                                                          |                           |          | (Note 2)        |             
|CASH FLOWS FROM FINANCING ACTIVITIES:                                                                |                                                                          |                           |          |                 |              |   |          |            |   |   |         |            |   |   |         |           
|                                                                                                     | Increase in short-term borrowings                                        |                           | W        | 91,942          |              |   | W        | 108,669    |   |   | W       |           |   |   | $       |           |  
|                                                                                                     | Issuance of bonds payable                                                |                           |          | 1,166,451       |              |   |          | 688,737    |   |   |         | 1,205,727  |   |   |         | 1,164,841  |  
|                                                                                                     | Increase in long-term borrowings                                         |                           |          | 24,682          |              |   |          | 13,532     |   |   |         |           |   |   |         |           |  
|                                                                                                     | Payment of short-term borrowings                                         |                           |          | (578,696        | )            |   |          | (12,087    | ) |   |         | (359,133   | ) |   |         | (346,955   | )
|                                                                                                     | Payment of current portion of long-term debt                             |                           |          | (719,779        | )            |   |          | (939,176   | ) |   |         | (1,370,611 | ) |   |         | (1,324,134 | )
|                                                                                                     | Repayment of bonds payable                                               |                           |          |                |              |   |          |           |   |   |         | (5,068     | ) |   |         | (4,896     | )
|                                                                                                     | Payment of dividends                                                     |                           |          | (58,716         | )            |   |          | (151,739   | ) |   |         | (478,318   | ) |   |         | (462,098   | )
|                                                                                                     | Decrease in facility deposits                                            |                           |          | (25,278         | )            |   |          | (2,654     | ) |   |         | (12,757    | ) |   |         | (12,324    | )
|                                                                                                     | Transaction of currency swap and currency forward                        |                           |          |                |              |   |          |           |   |   |         | 2,821      |   |   |         | 2,725      |  
|                                                                                                     | Net increase in treasury stock                                           |                           |          | (1,351,243      | )            |   |          | (1,379,337 | ) |   |         | (2         | ) |   |         | (2         | )
|                                                                                                     | Increase in minority interest in equity of consolidated
    subsidiaries |                           |          | 17,405          |              |   |          | 22,278     |   |   |         | 45,065     |   |   |         | 43,537     |  
|                                                                                                     | Other                                                                    |                           |          | 15,035          |              |   |          | (609,262   | ) |   |         | 3,706      |   |   |         | 3,579      |  
|                                                                                                     |                                                                          |                           |          |                 |              |   |          |            |   |   |         |           
|                                                                                                     | Net Cash Used in Financing Activities                                    |                           |          | (1,418,197      | )            |   |          | (2,261,039 | ) |   |         | (968,570   | ) |   |         | (935,727   | )
|                                                                                                     |                                                                          |                           |          |                 |              |   |          |            |   |   |         |           
|NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS DUE TO
    CHANGES IN CONSOLIDATED SUBSIDIARIES |                                                                          |                           | 10,654   |                 |              |   | 72       |            |   |   | (24,803 | )          |   |   | (23,962 | )         
|                                                                                                     |                                                                          |                           |          |                 |              |   |          |            |   |   |         |           
|NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                                                 |                                                                          |                           | (203,163 | )               |              |   | (346,629 | )          |   |   | 53,142  |            |   |   | 51,340  |           
|CASH AND CASH EQUIVALENTS AT BEGINNING OF THE YEAR                                                   |                                                                          |                           | 867,280  |                 |              |   | 664,117  |            |   |   | 317,488 |            |   |   | 306,722 |           
|                                                                                                     |                                                                          |                           |          |                 |              |   |          |            |   |   |         |           
|CASH AND CASH EQUIVALENTS AT END OF THE YEAR                                                         |                                                                          | W                         | 664,117  |                 |              | W | 317,488  |            |   | W | 370,630 |            |   | $ | 358,062 |           
|                                                                                                     |                                                                          |                           |          |                 |              |   |          |            |   |   |         |           
|Cash paid for interest (net of amounts capitalized)                                                  |                                                                          | W                         | 248,234  |                 |              | W | 328,890  |            |   | W | 264,224 |            |   | $ | 255,264 |           
|                                                                                                     |                                                                          |                           |          |                 |              |   |          |            |   |   |         |           
|Cash paid for income taxes                                                                           |                                                                          | W                         | 693,999  |                 |              | W | 675,122  |            |   | W | 679,262 |            |   | $ | 656,228 |           
|                                                                                                     |                                                                          |                           |          |                 |              |   |          |            |   |   |         |           



F-14



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##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


Years Ended December 31, 2002, 2003 AND 2004




|   |        
|-- | -------
|1. | GENERAL



|                                                        |  |           |            |               |              |  |        | 
|------------------------------------------------------- |  | --------- | ---------- | ------------- | ------------ |  | ------ | 
|                                                        |  |           |            | Percentage of |             
|                                                        |  | Number of |            |               | Total Shares | 
|                                                        |  | Shares    |            |               | Issued (%)   | 
|                                                        |  |           |            |               |              | 
|SK Group                                                |  |           | 19,772,914 |               |              |  | 24.03  | 
|POSCO Corp.                                             |  |           | 4,098,496  |               |              |  | 4.98   | 
|Institutional investors and other minority shareholders |  |           | 49,742,886 |               |              |  | 60.46  | 
|Treasury stock                                          |  |           | 8,662,415  |               |              |  | 10.53  | 
|                                                        |  |           |            |               |              | 
|                                                        |  |           | 82,276,711 |               |              |  | 100.00 | 
|                                                        |  |           |            |               |              | 



|   |                                           
|-- | ------------------------------------------
|2. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES





|   |                      
|-- | ---------------------
|a. | Basis of Presentation





|   |                            
|-- | ---------------------------
|b. | Principles of Consolidation



F-15



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##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                    |  |               |      |  |                  |  |                                |                |  |  |        | 
|----------------------------------- |  | ------------- | ---- |  | ---------------- |  | ------------------------------ | -------------- |  |  | ------ | 
|                                    |  | Year of       |      |  |                  |  | Ownership                      |               
|Subsidiary                          |  | Establishment |      |  | Primary business |  |                                | Percentage (%) | 
|                                    |  |               |      |  |                  |  |                                |                | 
|SK Teletech Co., Ltd.               |  |               | 1995 |  |                  |  | Engineering and maintenance    |                |  |  | 89.13  | 
|SK Capital Co., Ltd.                |  |               | 1995 |  |                  |  | Finance                        |                |  |  | 100.00 | 
|SK Telink Co., Ltd.                 |  |               | 1998 |  |                  |  | Telecommunication services     |                |  |  | 90.77  | 
|SK Communications Co., Ltd.         |  |               | 1999 |  |                  |  | Internet website services      |                |  |  | 93.44  | 
|SK Wyverns Baseball Club Co., Ltd.  |  |               | 2000 |  |                  |  | Business related sports        |                |  |  | 99.99  | 
|Centurion IT Investment Association |  |               | 2001 |  |                  |  | Investment association         |                |  |  | 37.50  | 
|Global Credit & information Corp.   |  |               | 1998 |  |                  |  | Credit and collection services |                |  |  | 50.00  | 
|PAXNet Co., Ltd.                    |  |               | 1999 |  |                  |  | Internet website services      |                |  |  | 67.10  | 
|SK Telecom International Inc.       |  |               | 1995 |  |                  |  | Internet website services      |                |  |  | 100.00 | 
|SLD Telecom PTE Ltd.                |  |               | 2000 |  |                  |  | Telecommunication services     |                |  |  | 55.10  | 
|SK Telecom China Co., Ltd.          |  |               | 2002 |  |                  |  | Telecommunication services     |                |  |  | 100.00 | 









|   |                 
|-- | ----------------
|c. | Use of Estimates





|   |                                
|-- | -------------------------------
|d. | Allowance for Doubtful Accounts



F-16



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##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                                           |  |      |         |   |      |   |         |      |  |   |         |  
|---------------------------------------------------------- |  | ---- | ------- | - | ---- | - | ------- | ---- |  | - | ------- | -
|                                                           |  | 2002 |         |   | 2003 |   |         | 2004 | 
|                                                           |  |      |         |   |      |   |         |      | 
|Beginning balance                                          |  | W    | 81,681  |   |      | W | 60,542  |      |  | W | 65,327  |  
|Increase in allowance from newly consolidated subsidiaries |  |      | 2,056   |   |      |   |        |      |  |   |        |  
|Additions                                                  |  |      | 22,281  |   |      |   | 22,378  |      |  |   | 29,181  |  
|Reductions                                                 |  |      | (45,476 | ) |      |   | (17,593 | )    |  |   | (23,418 | )
|                                                           |  |      |         |   |      |   |         |      | 
|Ending balance                                             |  | W    | 60,542  |   |      | W | 65,327  |      |  | W | 71,090  |  
|                                                           |  |      |         |   |      |   |         |      | 



|   |            
|-- | -----------
|e. | Inventories





|   |                                                                                          
|-- | -----------------------------------------------------------------------------------------
|f. | Securities (excluding securities accounted for using the
    equity method of accounting)













|   |                                                              
|-- | -------------------------------------------------------------
|g. | Investment Securities with 20% or More
    Ownership Interest



F-17



---



##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






|   |                       
|-- | ----------------------
|h. | Property and Equipment









|   |                  
|-- | -----------------
|i. | Intangible Assets







F-18



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##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                  |              |      |           |          |      |   |           |          |   |   |           |          |  
|----------------- | ------------ | ---- | --------- | -------- | ---- | - | --------- | -------- | - | - | --------- | -------- | -
|                  |              | 2002 |           |          | 2003 |   |           | 2004     |  
|                  |              |      |           |          |      |   |           |          |  
|Beginning balance |              | W    | 3,816,373 |          |      | W | 3,721,235 |          |   | W | 3,674,944 |         
|Additions:        |              |      |           |          |      |   |           |          |   |   |           |         
|                  | IMT license  |      |           | (40,393  | )    |   |           |         |   |   |           |         |  
|                  | Other        |      |           | 144,180  |      |   |           | 175,793  |   |   |           | 184,235  |  
|Reductions:       |              |      |           |          |      |   |           |          |   |   |           |         
|                  | Amortization |      |           | (187,218 | )    |   |           | (214,809 | ) |   |           | (332,020 | )
|                  | Write-off    |      |           | (6,669   | )    |   |           |         |   |   |           | (42      | )
|                  | Disposal     |      |           | (5,038   | )    |   |           | (7,275   | ) |   |           | (4,214   | )
|                  |              |      |           |          |      |   |           |          |  
|Ending balance    |              | W    | 3,721,235 |          |      | W | 3,674,944 |          |   | W | 3,522,903 |         
|                  |              |      |           |          |      |   |           |          |  



|   |                  
|-- | -----------------
|j. | Convertible Bonds





|   |                   
|-- | ------------------
|k. | Discounts on Bonds





|   |                                
|-- | -------------------------------
|l. | Valuation of Long-Term Payables





|   |                              
|-- | -----------------------------
|m. | Accrued Severance Indemnities





F-19



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##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                                                                   |  |      |         |   |      |   |         |      |  |   |         |  
|---------------------------------------------------------------------------------- |  | ---- | ------- | - | ---- | - | ------- | ---- |  | - | ------- | -
|                                                                                   |  | 2002 |         |   | 2003 |   |         | 2004 | 
|                                                                                   |  |      |         |   |      |   |         |      | 
|Beginning balance                                                                  |  | W    | 61,620  |   |      | W | 48,519  |      |  | W | 67,824  |  
|Provision                                                                          |  |      | 49,599  |   |      |   | 67,693  |      |  |   | 60,523  |  
|Payments to employees                                                              |  |      | (20,378 | ) |      |   | (24,516 | )    |  |   | (27,582 | )
|Transfer from affiliated and related companies                                     |  |      |        |   |      |   | 955     |      |  |   |        |  
|Increase in accrued severance indemnities from newly
    consolidated subsidiaries |  |      | 1,673   |   |      |   | 77      |      |  |   |        |  
|Deposits for severance indemnities                                                 |  |      | (43,995 | ) |      |   | (24,904 | )    |  |   | (19,781 | )
|                                                                                   |  |      |         |   |      |   |         |      | 
|Ending balance                                                                     |  | W    | 48,519  |   |      | W | 67,824  |      |  | W | 80,984  |  
|                                                                                   |  |      |         |   |      |   |         |      | 



|                         |       |  |        |         | 
|------------------------ | ----- |  | ------ | ------- | 
|Year ending December 31, |       | 
|                         |       | 
|2005                     |       |  | W2,225 |        
|2006                     |       |  |       |        
|2007                     |       |  | 976    |        
|2008                     |       |  | 166    |        
|2009                     |       |  | 951    |        
|2010Y2014                |       |  | 7,612  |        
|                         |       |  |       
|                         | Total |  |        | W11,930 | 
|                         |       |  |       





|   |                      
|-- | ---------------------
|n. | Accounting for Leases







|   |                               
|-- | ------------------------------
|o. | Research and Development Costs



F-20



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##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






|   |                       
|-- | ----------------------
|p. | Derivative Instruments





|   |                    
|-- | -------------------
|q. | Revenue Recognition







|   |             
|-- | ------------
|r. | Income Taxes





|   |                     
|-- | --------------------
|s. | Net Income Per Share





|   |                                                 
|-- | ------------------------------------------------
|t. | Foreign-Based Operations Translation Adjustment





|   |                                                                 
|-- | ----------------------------------------------------------------
|u. | Accounting for Foreign Currency Transactions and
    Translation



F-21



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##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






|   |                                                       
|-- | ------------------------------------------------------
|v. | Accounting for Employee Stock Option Compensation Plan





|   |                                                                      
|-- | ---------------------------------------------------------------------
|w. | Adoption of New Statements of Korea Accounting Standards
    (SKAS)







|   |                      
|-- | ---------------------
|3. | INVESTMENT SECURITIES



|   |                   
|-- | ------------------
|a. | Trading Securities



|                         |  |                  |         |  |               |   |         |                 |  |   |         |  |  |      |         |  |  |   |         | 
|------------------------ |  | ---------------- | ------- |  | ------------- | - | ------- | --------------- |  | - | ------- |  |  | ---- | ------- |  |  | - | ------- | 
|                         |  | Acquisition Cost |         |  | Fair Value at |   |         | Carrying Amount | 
|                         |  | at December 31,  |         |  | December 31,  |   |         |                 | 
|                         |  | 2004             |         |  | 2004          |   |         | 2002            |  |   | 2003    |  |  | 2004 |        
|                         |  |                  |         |  |               |   |         |                 |  |   |         |  |  |      |        
|Stocks                   |  | W                | 450     |  |               | W | 368     |                 |  | W |        |  |  | W    |        |  |  | W | 368     | 
|Public bonds             |  |                  |        |  |               |   |        |                 |  |   | 37      |  |  |      | 18,499  |  |  |   |        | 
|Corporate bonds          |  |                  |        |  |               |   |        |                 |  |   |        |  |  |      | 4,383   |  |  |   |        | 
|Beneficiary certificates |  |                  | 652,372 |  |               |   | 654,411 |                 |  |   | 754,182 |  |  |      | 870,335 |  |  |   | 654,411 | 
|                         |  |                  |         |  |               |   |         |                 |  |   |         |  |  |      |        
|Total                    |  | W                | 652,822 |  |               | W | 654,779 |                 |  | W | 754,219 |  |  | W    | 893,217 |  |  | W | 654,779 | 
|                         |  |                  |         |  |               |   |         |                 |  |   |         |  |  |      |        

F-22



---



##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |                                
|-- | -------------------------------
|b. | Long-term Investment Securities



|                                     |  |      |           |   |      |   |         |      |  |   |         |  
|------------------------------------ |  | ---- | --------- | - | ---- | - | ------- | ---- |  | - | ------- | -
|                                     |  | 2002 |           |   | 2003 |   |         | 2004 | 
|                                     |  |      |           |   |      |   |         |      | 
|Available-for-sale equity securities |  | W    | 1,334,197 |   |      | W | 824,392 |      |  | W | 896,508 |  
|Available-for-sale debt securities   |  |      | 12,500    |   |      |   | 14,315  |      |  |   | 5,158   |  
|Held-to-maturity securities          |  |      | 118,267   |   |      |   | 126,347 |      |  |   | 50,144  |  
|                                     |  |      |           |   |      |   |         |      | 
|Total                                |  |      | 1,464,964 |   |      |   | 965,054 |      |  |   | 951,810 |  
|Less current portion                 |  |      | (70,267   | ) |      |   | (85,861 | )    |  |   | (3,709  | )
|                                     |  |      |           |   |      |   |         |      | 
|Long-term portion                    |  | W    | 1,394,697 |   |      | W | 879,193 |      |  | W | 948,101 |  
|                                     |  |      |           |   |      |   |         |      | 

F-23



---



##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


b-(1). Available-for-sale Equity Securities




|                                        |           |           |            |                |             |  |             |          |  |            |             |            |             |             |                 |                 |      |   |          |          |   |   |           |         |  |   |         |         |  |   |         |         | 
|--------------------------------------- | --------- | --------- | ---------- | -------------- | ----------- |  | ----------- | -------- |  | ---------- | ----------- | ---------- | ----------- | ----------- | --------------- | --------------- | ---- | - | -------- | -------- | - | - | --------- | ------- |  | - | ------- | ------- |  | - | ------- | ------- | 
|                                        |           |           |            | Ownership      |             |  | Acquisition |          |  |            |             | Unrealized |             |             |                
|                                        |           |           |            | Percentage (%) |             |  | Cost at     |          |  | Fair Value |             |            | Gain (Loss) |             |                 | Carrying Amount |     
|                                        |           | Number of |            |                | at Dec. 31, |  |             | Dec. 31, |  |            | at Dec. 31, |            |             | at Dec. 31, |                 |                 |      |  
|                                        |           | Shares    |            |                | 2004        |  |             | 2004     |  |            | 2004        |            |             | 2004        |                 |                 | 2002 |   |          | 2003     |   |   | 2004      |        
|                                        |           |           |            |                |             |  |             |          |  |            |             |            |             |             |                 |                 |      |   |          |          |   |   |           |        
|(Investments in listed companies)       |           |           |            |                |             |  |             |          |  |            |             |            |             |             |                 |                 |      |   |          |          |   |   |           |         |  |   |         |         |  |   |         |        
|Digital Chosunilbo Co., Ltd.            |           |           | 2,890,630  |                |             |  | 7.8         |          |  | W          | 5,781       |            |             |             | W 2,023         |                 |      | W | (3,758   | )        |   | W | 2,428     |         |  | W | 2,847   |         |  |   | 2,023   |        
|Hanaro Telecom Inc.                     |           |           | 22,090,000 |                |             |  | 4.8         |          |  |            | 121,676     |            |             |             | 71,019          |                 |      |   | (50,657  | )        |   |   | 49,586    |         |  |   | 26,838  |         |  |   | 71,019  |        
|Korea Radio Wave Basestation Management |           |           | 234,150    |                |             |  | 4.5         |          |  |            | 1,171       |            |             |             | 2,178           |                 |      |   | 1,007    |          |   |   | 2,693     |         |  |   | 2,669   |         |  |   | 2,178   |        
|POSCO Corporation                       |           |           | 2,481,310  |                |             |  | 2.7         |          |  |            | 332,662     |            |             |             | 464,005         |                 |      |   | 131,343  |          |   |   |          |         |  |   | 404,454 |         |  |   | 464,005 |        
|KT Corporation                          |           |           |           |                |             |  |            |          |  |            |            |            |             |             |                |                 |      |   |         |          |   |   | 730,602   |         |  |   |        |         |  |   |        |        
|INNOTG Co., Ltd.                        |           |           | 594,737    |                |             |  | 3.9         |          |  |            | 1,695       |            |             |             | 152             |                 |      |   | (1,543   | )        |   |   |          |         |  |   |        |         |  |   | 152     |        
|SINJISOFT Corporation                   |           |           | 78,000     |                |             |  | 2.3         |          |  |            | 130         |            |             |             | 590             |                 |      |   | 460      |          |   |   |          |         |  |   |        |         |  |   | 590     |        
|SK Securities Co., Ltd.                 |           |           | 3,608,856  |                |             |  | 1.1         |          |  |            | 5,551       |            |             |             | 2,418           |                 |      |   | (3,133   | )        |   |   | 5,052     |         |  |   | 1,877   |         |  |   | 2,418   |        
|                                        |           |           |            |                |             |  |             |          |  |            |             |            |             |             |                 |                 |      |   |          |          |   |   |           |        
|                                        | sub-total |           |            |                |             |  |             |          |  |            |             | 468,666    |             |             |                 |                 |      |   |          | 73,719   |   |   |           | 790,361 |  |   |         | 438,685 |  |   |         | 542,385 | 
|                                        |           |           |            |                |             |  |             |          |  |            |             |            |             |             |                 |                 |      |   |          |          |   |   |           |        
|(Investments in non-listed companies)   |           |           |            |                |             |  |             |          |  |            |             |            |             |             |                 |                 |      |   |          |          |   |   |           |         |  |   |         |         |  |   |         |        
|Powercomm Co., Ltd.                     |           |           | 7,500,000  |                |             |  | 5.0         |          |  |            | 240,243     |            |             |             | 71,565          |                 |      |   | (168,678 | )        |   |   | 240,243   |         |  |   | 68,407  |         |  |   | 71,565  |        
|Real Telecom Co., Ltd.                  |           |           | 398,722    |                |             |  | 8.3         |          |  |            | 5,981       |            |             |             | (note c         | )               |      |   |         |          |   |   | 5,981     |         |  |   | 5,981   |         |  |   |        |        
|Japan MBCO                              |           |           | 54,000     |                |             |  | 7.3         |          |  |            | 27,332      |            |             |             | (note a         | )               |      |   |         |          |   |   | 27,209    |         |  |   | 42,517  |         |  |   | 27,332  |        
|Enterprise Networks Co., Ltd.           |           |           | 423,244    |                |             |  | 4.0         |          |  |            | 14,438      |            |             |             | (note c         | )               |      |   |         |          |   |   | 14,438    |         |  |   | 14,438  |         |  |   |        |        
|SK Life Insurance Co., Ltd.             |           |           | 4,702,000  |                |             |  | 8.7         |          |  |            | 14,890      |            |             |             | (note a         | )               |      |   |         |          |   |   | 14,890    |         |  |   | 14,890  |         |  |   | 14,890  |        
|Eonex Technologies Inc.                 |           |           | 144,000    |                |             |  | 14.1        |          |  |            | 3,600       |            |             |             | (note a         | )               |      |   | 2,011    |          |   |   | 4,593     |         |  |   | 4,593   |         |  |   | 4,593   |        
|WideThan Co., Ltd.                      |           |           | 2,000,000  |                |             |  | 14.3        |          |  |            | 1,000       |            |             |             | (note a         | )               |      |   | (27      | )        |   |   |          |         |  |   | 3,188   |         |  |   | 3,188   |        
|Other                                   |           |           |            |                |             |  |             |          |  |            | 123,396     |            |             |             | (notes a  and b | )               |      |   |         |          |   |   | 43,971    |         |  |   | 38,475  |         |  |   | 36,149  |        
|                                        |           |           |            |                |             |  |             |          |  |            |             |            |             |             |                 |                 |      |   |          |          |   |   |           |        
|                                        | sub-total |           |            |                |             |  |             |          |  |            |             | 430,879    |             |             |                 |                 |      |   |          | (166,694 | ) |   |           | 346,732 |  |   |         | 189,301 |  |   |         | 157,717 | 
|                                        |           |           |            |                |             |  |             |          |  |            |             |            |             |             |                 |                 |      |   |          |          |   |   |           |        
|(Investments in funds)                  |           |           |            |                |             |  |             |          |  |            |             |            |             |             |                 |                 |      |   |          |          |   |   |           |         |  |   |         |         |  |   |         |        
|Korea IT Fund                           |           |           |            |                |             |  |             |          |  |            |             |            |             |             | (note a         | )               |      |   |         |          |   |   | 190,000   |         |  |   | 190,000 |         |  |   | 190,000 |        
|Others                                  |           |           |            |                |             |  |             |          |  |            |             |            |             |             | (notes a  and b | )               |      |   |         |          |   |   | 7,104     |         |  |   | 6,406   |         |  |   | 6,406   |        
|                                        |           |           |            |                |             |  |             |          |  |            |             |            |             |             |                 |                 |      |   |          |          |   |   |           |        
|                                        | sub-total |           |            |                |             |  |             |          |  |            |             |            |             |             |                 |                 |      |   |          |         |   |   |           | 197,104 |  |   |         | 196,406 |  |   |         | 196,406 | 
|                                        |           |           |            |                |             |  |             |          |  |            |             |            |             |             |                 |                 |      |   |          |          |   |   |           |        
|Total                                   |           |           |            |                |             |  |             |          |  |            |             |            |             |             |                 |                 |      | W | 92,975   |          |   | W | 1,334,197 |         |  | W | 824,392 |         |  | W | 896,508 |        
|                                        |           |           |            |                |             |  |             |          |  |            |             |            |             |             |                 |                 |      |   |          |          |   |   |           |        






|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|-------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(note a) | As a reasonable estimate of fair value could not be made, the
    investment is stated at acquisition cost. The investments in
    common stock of Eonex Technologies Inc. and WiderThan Co., Ltd.
    were reclassified to available-for-sale securities from equity
    securities accounted for using the equity method during 2003 and
    2004, respectively, as the Companys ownership in such
    investees decreased to less than 20%. Such securities were
    transferred to available-for-sale securities at the carrying
    amount valued using the equity method of accounting prior to the
    reclassification.
|        
|(note b) | Due to the impairment of their investments in common stock of
    CCK Van, Biznet Tech, Hanse Telecom, Cybird Korea and Venture
    Korea in 2003 and Mobilewelcom Co., Ltd., CXP Inc., LoveHunt
    Inc. and others in 2004, the Company and certain subsidiaries
    recorded impairment losses of W5,749 million and
    W2,580 million for the years ended December 31, 2003
    and 2004, respectively.                                                                                                                                                                                                                    

F-24



---



##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|         |                                                                                                                                                                                                                                            
|-------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(note c) | Due to the impairment of the Companys investments in
    common stock of Real Telecom Co., Ltd. and Enterprise Networks
    Co., Ltd., the Company recorded impairment losses of
    W20,419 million for the year ended December 31, 2004.







b-(2). Available-for-sale Debt Securities




|                                                           |  |          |              |              |      |   |                 |      |  |   |        |   |  |      |        |   |  |   |        |  
|---------------------------------------------------------- |  | -------- | ------------ | ------------ | ---- | - | --------------- | ---- |  | - | ------ | - |  | ---- | ------ | - |  | - | ------ | -
|                                                           |  |          |              | Acquisition  |      |   |                
|                                                           |  |          |              | Cost at      |      |   | Carrying Amount |     
|                                                           |  |          |              | December 31, |      |   |                 |     
|                                                           |  | Maturity |              |              | 2004 |   |                 | 2002 |  |   | 2003   |   |  | 2004 |       
|                                                           |  |          |              |              |      |   |                 |      |  |   |        |   |  |      |       
|Public bonds                                               |  |          | (note a      | )            |      | W | 1,328           |      |  | W | 586    |   |  | W    | 971    |   |  | W | 1,328  |  
|Convertible bonds of Real Telecom Co., Ltd.                |  |          | March 2004   |              |      |   | 10,655          |      |  |   | 9,514  |   |  |      | 9,514  |   |  |   |       |  
|Convertible bonds of Eonex Technologies, Inc.(1st)         |  |          | May 2003     |              |      |   |                |      |  |   | 2,000  |   |  |      |       |   |  |   |       |  
|Convertible bonds of Eonex Technologies, Inc.(3rd)         |  |          | January 2005 |              |      |   | 3,600           |      |  |   |       |   |  |      | 3,600  |   |  |   | 3,600  |  
|Other                                                      |  |          |              |              |      |   | 230             |      |  |   | 400    |   |  |      | 230    |   |  |   | 230    |  
|                                                           |  |          |              |              |      |   |                 |      |  |   |        |   |  |      |       
|Total                                                      |  |          |              |              |      |   |                 |      |  |   | 12,500 |   |  |      | 14,315 |   |  |   | 5,158  |  
|Less current portion of available-for-sale debt securities |  |          |              |              |      |   |                 |      |  |   | (2,000 | ) |  |      | (9,514 | ) |  |   | (3,700 | )
|                                                           |  |          |              |              |      |   |                 |      |  |   |        |   |  |      |       
|Long-term available-for-sale debt securities               |  |          |              |              |      |   |                 |      |  | W | 10,500 |   |  | W    | 4,801  |   |  | W | 1,458  |  
|                                                           |  |          |              |              |      |   |                 |      |  |   |        |   |  |      |       

F-25



---



##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|         |                                                                                                                      
|-------- | ---------------------------------------------------------------------------------------------------------------------
|(note a) | The maturities of public bonds as of December 31, 2002,
    2003 and 2004 are as follows (in millions of Korean won):

|                  |  |      |     |  |      |   |     |      |  |   |       | 
|----------------- |  | ---- | --- |  | ---- | - | --- | ---- |  | - | ----- | 
|Maturity          |  | 2002 |     |  | 2003 |   |     | 2004 | 
|                  |  |      |     |  |      |   |     |      | 
|Within five years |  | W    | 583 |  |      | W | 857 |      |  | W | 904   | 
|Within ten years  |  |      | 3   |  |      |   | 114 |      |  |   | 424   | 
|                  |  |      |     |  |      |   |     |      | 
|                  |  | W    | 586 |  |      | W | 971 |      |  | W | 1,328 | 
|                  |  |      |     |  |      |   |     |      | 





b-(3). Held-to-maturity Securities




|                                                          |  |          |                |              |      |   |                 |      |  |   |         |   |  |      |         |   |  |   |        |  
|--------------------------------------------------------- |  | -------- | -------------- | ------------ | ---- | - | --------------- | ---- |  | - | ------- | - |  | ---- | ------- | - |  | - | ------ | -
|                                                          |  |          |                | Acquisition  |      |   |                
|                                                          |  |          |                | Cost at      |      |   | Carrying Amount |     
|                                                          |  |          |                | December 31, |      |   |                 |     
|                                                          |  | Maturity |                |              | 2004 |   |                 | 2002 |  |   | 2003    |   |  | 2004 |        
|                                                          |  |          |                |              |      |   |                 |      |  |   |         |   |  |      |        
|Public bonds                                              |  |          | (note a        | )            |      | W | 144             |      |  | W |        |   |  | W    |        |   |  | W | 144    |  
|Subordinated bonds of SK Life Insurance Co., Ltd.         |  |          | April 2006     |              |      |   | 50,000          |      |  |   | 50,000  |   |  |      | 50,000  |   |  |   | 50,000 |  
|Subordinated bonds of Nate First Special Purpose Company  |  |          | June 2003      |              |      |   |                |      |  |   | 40,506  |   |  |      |        |   |  |   |       |  
|Subordinated bonds of Nate Second Special Purpose Company |  |          | December 2003  |              |      |   |                |      |  |   | 27,761  |   |  |      |        |   |  |   |       |  
|Subordinated bonds of Nate Third Special Purpose Company  |  |          | May 2004       |              |      |   |                |      |  |   |        |   |  |      | 27,464  |   |  |   |       |  
|Subordinated bonds of Nate Fourth Special Purpose Company |  |          | September 2004 |              |      |   |                |      |  |   |        |   |  |      | 25,393  |   |  |   |       |  
|Subordinated bonds of Nate Fifth Special Purpose Company  |  |          | December 2004  |              |      |   |                |      |  |   |        |   |  |      | 23,490  |   |  |   |       |  
|                                                          |  |          |                |              |      |   |                 |      |  |   |         |   |  |      |        
|Total                                                     |  |          |                |              |      |   |                 |      |  |   | 118,267 |   |  |      | 126,347 |   |  |   | 50,144 |  
|Less current portion of held-to-maturity securities       |  |          |                |              |      |   |                 |      |  |   | (68,267 | ) |  |      | (76,347 | ) |  |   | (9     | )
|                                                          |  |          |                |              |      |   |                 |      |  |   |         |   |  |      |        
|Long-term held-to-maturity securities                     |  |          |                |              |      |   |                 |      |  | W | 50,000  |   |  | W    | 50,000  |   |  | W | 50,135 |  
|                                                          |  |          |                |              |      |   |                 |      |  |   |         |   |  |      |        

F-26



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##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)







|                  |  |      |     | 
|----------------- |  | ---- | --- | 
|Maturity          |  | 2004 |    
|                  |  |      |    
|Within one year   |  | W    | 9   | 
|Within five years |  |      | 105 | 
|Within ten years  |  |      | 30  | 
|                  |  |      |    
|                  |  | W    | 144 | 
|                  |  |      |    





|   |                                                        
|-- | -------------------------------------------------------
|4. | EQUITY SECURITIES ACCOUNTED FOR USING THE EQUITY METHOD



|                                 |  |              |           |           |              |  |      |              |  |  |              |  |  |  |          |                 |  |  |         |   |  |      |        |  |  |   |         |  |  |   |         | 
|-------------------------------- |  | ------------ | --------- | --------- | ------------ |  | ---- | ------------ |  |  | ------------ |  |  |  | -------- | --------------- |  |  | ------- | - |  | ---- | ------ |  |  | - | ------- |  |  | - | ------- | 
|                                 |  |              |           | Ownership |              |  |      |              |  |  |              |  |  |  |          |                 | 
|                                 |  | Number of    |           |           | Percentage   |  |      | Acquisition  |  |  | Net Asset    |  |  |  |          |                
|                                 |  | Shares at    |           |           | (%) at       |  |      | Cost at      |  |  | Value at     |  |  |  |          | Carrying Amount | 
|                                 |  | December 31, |           |           | December 31, |  |      | December 31, |  |  | December 31, |  |  |  |          |                 | 
|                                 |  | 2004         |           |           | 2004         |  |      | 2004         |  |  | 2004         |  |  |  |          | 2002            |  |  | 2003    |   |  | 2004 |       
|                                 |  |              |           |           |              |  |      |              |  |  |              |  |  |  |          |                 |  |  |         |   |  |      |       
|SK C&C Co., Ltd.                 |  |              | 300,000   |           |              |  | 30.0 |              |  |  | W19,071      |  |  |  | W196,208 |                 |  |  |         |   |  | W    | 39,687 |  |  | W | 92,844  |  |  | W | 201,484 | 
|STIC Ventures Co., Ltd.          |  |              | 1,600,000 |           |              |  | 24.1 |              |  |  | 8,000        |  |  |  | 7,477    |                 |  |  |         |   |  |      | 6,885  |  |  |   | 7,086   |  |  |   | 7,477   | 
|Eonex Technologies, Inc.         |  |              |          |           |              |  |     |              |  |  |             |  |  |  |         |                 |  |  | (note a | ) |  |      | 4,615  |  |  |   |        |  |  |   |        | 
|WiderThan Co., Ltd.              |  |              |          |           |              |  |     |              |  |  |             |  |  |  |         |                 |  |  | (note b | ) |  |      | 1,750  |  |  |   | 3,188   |  |  |   |        | 
|VCASH Co., Ltd.                  |  |              |          |           |              |  |     |              |  |  |             |  |  |  |         |                 |  |  | (note c | ) |  |      | 2,232  |  |  |   | 1,048   |  |  |   |        | 
|Skytel Co., Ltd.                 |  |              | 1,756,000 |           |              |  | 28.6 |              |  |  | 2,159        |  |  |  | 3,713    |                 |  |  |         |   |  |      | 2,576  |  |  |   | 3,401   |  |  |   | 3,713   | 
|SK China Company Ltd.            |  |              | 28,160    |           |              |  | 20.7 |              |  |  | 3,195        |  |  |  | 1,915    |                 |  |  |         |   |  |      | 3,482  |  |  |   | 1,683   |  |  |   | 830     | 
|SKT-QC Wireless Development Fund |  |              |           |           |              |  | 50.0 |              |  |  | 6,540        |  |  |  | 5,146    |                 |  |  |         |   |  |      | 5,993  |  |  |   | 5,901   |  |  |   | 5,146   | 
|SKT-HP Ventures, LLC             |  |              |           |           |              |  | 50.0 |              |  |  | 6,415        |  |  |  | 5,281    |                 |  |  |         |   |  |      | 5,990  |  |  |   | 5,960   |  |  |   | 5,281   | 
|CDMA Mobile Phone Center         |  |              |           |           |              |  | 50.0 |              |  |  | 45,687       |  |  |  | 25,117   |                 |  |  |         |   |  |      |       |  |  |   | 49,444  |  |  |   | 25,117  | 
|TU Media Corp.                   |  |              | 7,800,000 |           |              |  | 28.5 |              |  |  | 39,000       |  |  |  | 34,592   |                 |  |  | (note d | ) |  |      |       |  |  |   |        |  |  |   | 34,592  | 
|SK USA, Inc.                     |  |              | 49        |           |              |  | 49.0 |              |  |  | 3,184        |  |  |  | 3,056    |                 |  |  | (note e | ) |  |      | 3,184  |  |  |   | 3,184   |  |  |   | 3,056   | 
|Aircross Co., Ltd.               |  |              | 600,000   |           |              |  | 38.1 |              |  |  | 300          |  |  |  | 940      |                 |  |  | (note e | ) |  |      | 300    |  |  |   | 300     |  |  |   | 940     | 
|DSS Mobile Communications Ltd.   |  |              |          |           |              |  |     |              |  |  |             |  |  |  |         |                 |  |  | (note f | ) |  |      |       |  |  |   |        |  |  |   |        | 
|Other investments in affiliates  |  |              |           |           |              |  |      |              |  |  | 16,893       |  |  |  |          |                 |  |  | (note g | ) |  |      | 4,553  |  |  |   | 9,670   |  |  |   | 16,392  | 
|                                 |  |              |           |           |              |  |      |              |  |  |              |  |  |  |          |                 |  |  |         |   |  |      |        | 
|Total                            |  |              |           |           |              |  |      |              |  |  |              |  |  |  |          |                 |  |  |         |   |  | W    | 81,247 |  |  | W | 183,709 |  |  | W | 304,028 | 
|                                 |  |              |           |           |              |  |      |              |  |  |              |  |  |  |          |                 |  |  |         |   |  |      |        | 






|         |                                                                                                                                                                                                                                                                                            
|-------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(note a) | As the Companys ownership in Eonex Technologies, Inc.
    decreased to 16.1% from 22.5%, during the first quarter of 2003,
    investments in common stock of Eonex Technologies, Inc. were
    reclassified to available-for-sale securities at the end of the
    first quarter of 2003.

F-27



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##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|         |                                                                                                                                                                                                                                                                                                 
|-------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(note b) | As the Companys ownership in WiderThan Co., Ltd. decreased
    to 14.3% from 20% in 2004, investments in common stock of
    WiderThan Co., Ltd. are reclassified to available-for-sale
    securities in 2004.                                                                                
|        
|(note c) | The investments in common stock of VCASH Co., Ltd. were sold to
    Korea Railway Transportation Promotion Foundation in 2004.                                                                                                                                                                  
|        
|(note d) | As the Companys ownership in TU Media Corp. decreased from
    100% to 28.5% in 2004, TU Media Corp. was excluded from the
    consolidation, effective January 1, 2004. And, the
    investment in common stock of TU Media Corp. are accounted for
    using the equity method of accounting.
|        
|(note e) | As their total assets at the beginning of 2004 were over
    W7 billion, effective January 1, 2004, investments in
    equity securities of SK USA, Inc. and Aircross Co., Ltd. are
    accounted for using the equity method of accounting.                                                    



|         |                                                                                                                                                                                             
|-------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(note f) | DSS Mobile Communication Ltd., an Indian company, has a negative
    capital since March 31, 1998 and the investment in common
    stock of DSS Mobile Communication Ltd. were sold in 2004.



|         |                                                                                                                                                                                                                                                                                                               
|-------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(note g) | As allowed under Korean GAAP, investments in equity securities
    of SK Telecom Europe Limited, UNISK Information Technology Co.,
    Ltd. and certain others were not accounted for using the equity
    method of accounting, as their total assets at the beginning of
    2004 were less than W7 billion.



|                                      |  |                                      |        |           |             |   |           |          |  |                 |          |   |             |             |   |           |          |   |        |          |        |   |         |   |  |   |   |  |  |   |        | 
|------------------------------------- |  | ------------------------------------ | ------ | --------- | ----------- | - | --------- | -------- |  | --------------- | -------- | - | ----------- | ----------- | - | --------- | -------- | - | ------ | -------- | ------ | - | ------- | - |  | - | - |  |  | - | ------ | 
|                                      |  | For the Year Ended December 31, 2002 |       
|                                      |  |                                      |       
|                                      |  |                                      |        | Equity in |             |   |          
|                                      |  |                                      |        | Equity in |             |   | Equity in |          |  | Capital Surplus |          |   |            
|                                      |  | Beginning                            |        |           |             |   | Earnings  |          |  | Retained        |          |   | and Capital |             |   | Dividends |          |   |        |          | Ending |  
|                                      |  | Balance                              |        |           | Acquisition |   |           | (Losses) |  |                 | Earnings |   |             | Adjustments |   |           | Received |   |        | Decrease |        |   | Balance |  
|                                      |  |                                      |        |           |             |   |           |          |  |                 |          |   |             |             |   |           |          |   |        |          |        |   |         |  
|SK C&C Co., Ltd.                      |  | W                                    | 43,475 |           |             | W |          |          |  | W               | 3,401    |   |             | W           |  |           |          | W | (6,589 | )        |        | W | (600    | ) |  | W |  |  |  | W | 39,687 | 
|STIC IT Venture Capital               |  |                                      | 8,038  |           |             |   |          |          |  |                 | (1,137   | ) |             |             |  |           |          |   | (16    | )        |        |   |        |   |  |   |  |  |  |   | 6,885  | 
|Eonex Technologies, Inc. (note a)     |  |                                      | 3,600  |           |             |   |          |          |  |                 | (996     | ) |             |             |  |           |          |   | 2,011  |          |        |   |        |   |  |   |  |  |  |   | 4,615  | 
|WiderThan Co., Ltd. (note a)          |  |                                      | 1,000  |           |             |   |          |          |  |                 | 750      |   |             |             |  |           |          |   |       |          |        |   |        |   |  |   |  |  |  |   | 1,750  | 
|VCASH                                 |  |                                      | 3,417  |           |             |   |          |          |  |                 | (1,192   | ) |             |             |  |           |          |   | 7      |          |        |   |        |   |  |   |  |  |  |   | 2,232  | 
|Skytel Co., Ltd.                      |  |                                      | 2,352  |           |             |   | 675       |          |  |                 | 29       |   |             |             |  |           |          |   | (480   | )        |        |   |        |   |  |   |  |  |  |   | 2,576  | 
|SK China Co., Ltd.                    |  |                                      | 3,869  |           |             |   |          |          |  |                 | (21      | ) |             |             |  |           |          |   | (366   | )        |        |   |        |   |  |   |  |  |  |   | 3,482  | 
|SKT QC Wireless Development Fund, LLC |  |                                      | 6,540  |           |             |   |          |          |  |                 | (9       | ) |             |             |  |           |          |   | (538   | )        |        |   |        |   |  |   |  |  |  |   | 5,993  | 
|SKT-HP Ventures, LLC                  |  |                                      | 6,415  |           |             |   |          |          |  |                 | (12      | ) |             |             |  |           |          |   | (413   | )        |        |   |        |   |  |   |  |  |  |   | 5,990  | 
|                                      |  |                                      |        |           |             |   |           |          |  |                 |          |   |             |             |   |           |          |   |        |          |        |   |         |  
|                                      |  | W                                    | 78,706 |           |             | W | 675       |          |  | W               | 813      |   |             | W           |  |           |          | W | (6,384 | )        |        | W | (600    | ) |  | W |  |  |  | W | 73,210 | 
|                                      |  |                                      |        |           |             |   |           |          |  |                 |          |   |             |             |   |           |          |   |        |          |        |   |         |  






|         |                                                                                                                                                                                                                                                          
|-------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(note a) | As their total assets at the beginning of 2002 were over
    W7 billion, effective January 1, 2002, investments in
    equity securities of Eonex Technologies, Inc. and WiderThan Co.,
    Ltd. are accounted for using the equity method of accounting.

F-28



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##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


|                                  |  |                                      |         |           |             |   |           |          |  |                 |          |   |             |             |          |          |          |   |          |        |  |        |         |   |  |   |        |   |  |   |         | 
|--------------------------------- |  | ------------------------------------ | ------- | --------- | ----------- | - | --------- | -------- |  | --------------- | -------- | - | ----------- | ----------- | -------- | -------- | -------- | - | -------- | ------ |  | ------ | ------- | - |  | - | ------ | - |  | - | ------- | 
|                                  |  | For the Year Ended December 31, 2003 |        
|                                  |  |                                      |        
|                                  |  |                                      |         | Equity in |             |   | Equity in |          |  |                
|                                  |  |                                      |         | Equity in |             |   | Retained  |          |  | Capital Surplus |          |   |             |             | Decrease |          |          |  
|                                  |  | Beginning                            |         |           |             |   | Earnings  |          |  | Earning         |          |   | and Capital |             |          | Dividend |          |   | (Notes c |        |  | Ending |        
|                                  |  | Balance                              |         |           | Acquisition |   |           | (Losses) |  |                 | (Note b) |   |             | Adjustments |          |          | Received |   |          | and d) |  |        | Balance |  
|                                  |  |                                      |         |           |             |   |           |          |  |                 |          |   |             |             |          |          |          |   |          |        |  |        |         |  
|SK C&C Co., Ltd.                  |  | W                                    | 39,687  |           |             | W |          |          |  | W               | 7,962    |   |             | W           |         |          |          | W | 45,795   |        |  | W      | (600    | ) |  | W |       |   |  | W | 92,844  | 
|STIC Ventures Co., Ltd.           |  |                                      | 6,884   |           |             |   |          |          |  |                 | 44       |   |             |             | (3       | )        |          |   | 161      |        |  |        |        |   |  |   |       |   |  |   | 7,086   | 
|Eonex Technologies, Inc.          |  |                                      | 4,615   |           |             |   |          |          |  |                 | (22      | ) |             |             |         |          |          |   |         |        |  |        |        |   |  |   | (4,593 | ) |  |   |        | 
|WiderThan Co., Ltd.               |  |                                      | 1,750   |           |             |   |          |          |  |                 | 1,465    |   |             |             |         |          |          |   | (27      | )      |  |        |        |   |  |   |       |   |  |   | 3,188   | 
|VCASH Co., Ltd.                   |  |                                      | 2,232   |           |             |   |          |          |  |                 | (1,353   | ) |             |             | (30      | )        |          |   | 199      |        |  |        |        |   |  |   |       |   |  |   | 1,048   | 
|Skytel Co., Ltd.                  |  |                                      | 2,576   |           |             |   |          |          |  |                 | 694      |   |             |             |         |          |          |   | 152      |        |  |        | (21     | ) |  |   |       |   |  |   | 3,401   | 
|SK China Co., Ltd.                |  |                                      | 3,482   |           |             |   |          |          |  |                 | (1,864   | ) |             |             |         |          |          |   | 65       |        |  |        |        |   |  |   |       |   |  |   | 1,683   | 
|SK-QC Wireless Development Fund   |  |                                      | 5,993   |           |             |   |          |          |  |                 | (79      | ) |             |             |         |          |          |   | (13      | )      |  |        |        |   |  |   |       |   |  |   | 5,901   | 
|SKT-HP Ventures, LLC              |  |                                      | 5,990   |           |             |   |          |          |  |                 | 17       |   |             |             |         |          |          |   | (47      | )      |  |        |        |   |  |   |       |   |  |   | 5,960   | 
|CDMA Mobile Phone Center (note a) |  |                                      | 63,354  |           |             |   |          |          |  |                 | (13,839  | ) |             |             |         |          |          |   |         |        |  |        |        |   |  |   | (71    | ) |  |   | 49,444  | 
|                                  |  |                                      |         |           |             |   |           |          |  |                 |          |   |             |             |          |          |          |   |          |        |  |        |         |  
|                                  |  | W                                    | 136,563 |           |             | W |          |          |  | W               | (6,975   | ) |             | W           | (33      | )        |          | W | 46,285   |        |  | W      | (621    | ) |  | W | (4,664 | ) |  | W | 170,555 | 
|                                  |  |                                      |         |           |             |   |           |          |  |                 |          |   |             |             |          |          |          |   |          |        |  |        |         |  






|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|-------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(note a) | As its total assets at the beginning of 2003 were over
    W7 billion, effective January 1, 2003, investment in
    equity securities of CDMA Mobile Phone Center held by
    SLD Telecom PTE Ltd., a overseas subsidiary of the
    Company, is accounted for using the (note a) equity method
    of accounting.                                                                                                                                                                                                                                  
|        
|(note b) | Effective January 1, 2003, the Companys investees
    including STIC Ventures Co., Ltd. and VCASH Co., Ltd.,
    adopted SKAS No. 3, Intangible Assets. This
    statement requires that organization cost be charged to expenses
    as incurred and the unamortized organization costs at
    January 1, 2003 be offset against the beginning retained
    earnings. To reflect the Companys portion of the decrease
    in the beginning retained earnings of the investees, the Company
    reduced its beginning retained earnings of 2003.
|        
|(note c) | Investments in common stock of Eonex Technologies, Inc. were
    reclassified to available-for-sale securities as the
    Companys ownership in Eonex Technologies, Inc. decreased
    to 16.1% from 22.5% during the first quarter of 2003.                                                                                                                                                                                                                                                                                                       
|        
|(note d) | The decrease in investments in equity securities of CDMA Mobile
    Phone Center represents a translation loss incurred from
    translating the foreign currency financial statements of SLD
    Telecom PTE Ltd., a overseas subsidiary of the Company, which
    makes investments in CDMA Mobile Phone Center, into Korean won.                                                                                                                                                                                                                 

F-29



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##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


|                                |  |                                      |         |           |             |   |                 |          |  |             |             |          |          |          |        |          |        |    |        |         |  |    |        |   |  |   |         | 
|------------------------------- |  | ------------------------------------ | ------- | --------- | ----------- | - | --------------- | -------- |  | ----------- | ----------- | -------- | -------- | -------- | ------ | -------- | ------ | -- | ------ | ------- |  | -- | ------ | - |  | - | ------- | 
|                                |  | For the Year Ended December 31, 2004 |        
|                                |  |                                      |        
|                                |  |                                      |         | Equity in |             |   |                
|                                |  |                                      |         | Equity in |             |   | Capital Surplus |          |  |             |             | Decrease |          |          |       
|                                |  | Beginning                            |         |           |             |   | Earnings        |          |  | and Capital |             |          | Dividend |          |        | (Notes b |        |    | Ending |        
|                                |  | Balance                              |         |           | Acquisition |   |                 | (Losses) |  |             | Adjustments |          |          | Received |        |          | and c) |    |        | Balance | 
|                                |  |                                      |         |           |             |   |                 |          |  |             |             |          |          |          |        |          |        |    |        |         | 
|SK C&C Co., Ltd.                |  | W                                    | 92,844  |           |             | W | -               |          |  | W           | 13,322      |          |          | W        | 95,918 |          |        | (W | 600    | )       |  | W  | -      |   |  | W | 201,484 | 
|STIC Ventures Co., Ltd.         |  |                                      | 7,086   |           |             |   |                |          |  |             | (123        | )        |          |          | 514    |          |        |    |       |         |  |    |       |   |  |   | 7,477   | 
|WiderThan Co., Ltd.             |  |                                      | 3,188   |           |             |   |                |          |  |             |            |          |          |          |       |          |        |    |       |         |  |    | (3,188 | ) |  |   |        | 
|VCASH Co., Ltd.                 |  |                                      | 1,048   |           |             |   |                |          |  |             | (657        | )        |          |          |       |          |        |    |       |         |  |    | (391   | ) |  |   |        | 
|Skytel Co., Ltd.                |  |                                      | 3,401   |           |             |   |                |          |  |             | 1,070       |          |          |          | (603   | )        |        |    | (155   | )       |  |    |       |   |  |   | 3,713   | 
|SK China Co., Ltd.              |  |                                      | 1,683   |           |             |   |                |          |  |             | (595        | )        |          |          | (258   | )        |        |    |       |         |  |    |       |   |  |   | 830     | 
|SK-QC Wireless Development Fund |  |                                      | 5,901   |           |             |   |                |          |  |             | 4           |          |          |          | (759   | )        |        |    |       |         |  |    |       |   |  |   | 5,146   | 
|SKT-HP Ventures, LLC            |  |                                      | 5,960   |           |             |   |                |          |  |             | 62          |          |          |          | (741   | )        |        |    |       |         |  |    |       |   |  |   | 5,281   | 
|CDMA Mobile Phone Center        |  |                                      | 49,444  |           |             |   | 5,979           |          |  |             | (21,651     | )        |          |          |       |          |        |    |       |         |  |    | (8,655 | ) |  |   | 25,117  | 
|TU Media Corp.                  |  |                                      | 38,681  |           |             |   |                |          |  |             | (4,213      | )        |          |          | 124    |          |        |    |       |         |  |    |       |   |  |   | 34,592  | 
|SK USA, Inc. (note a)           |  |                                      | 3,184   |           |             |   |                |          |  |             | 168         |          |          |          | (296   | )        |        |    |       |         |  |    |       |   |  |   | 3,056   | 
|Aircross Co., Ltd. (note a)     |  |                                      | 300     |           |             |   |                |          |  |             | 659         |          |          |          | (19    | )        |        |    |       |         |  |    |       |   |  |   | 940     | 
|                                |  |                                      |         |           |             |   |                 |          |  |             |             |          |          |          |        |          |        |    |        |         | 
|                                |  | W                                    | 212,720 |           |             | W | 5,979           |          |  | (W          | 11,954      | )        |          | W        | 93,880 |          |        | (W | 755    | )       |  | (W | 12,234 | ) |  | W | 287,636 | 
|                                |  |                                      |         |           |             |   |                 |          |  |             |             |          |          |          |        |          |        |    |        |         | 






|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|-------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(note a) | As their total assets at the beginning of 2004 were over
    W7 billion, effective January 1, 2004, investments in
    equity securities of SK USA, Inc. and Aircross Co., Ltd. are
    accounted for using the equity method of accounting.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|        
|(note b) | As the Companys ownership in WiderThan Co., Ltd. decreased
    to 14.3% from 20% in 2004, investments in common stock of
    WiderThan Co., Ltd. are reclassified to available-for-sale
    securities in 2004.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|        
|(note c) | SLD Telecom PTE Ltd. (SLD), an oversea subsidiary of
    the Company, accounted for the in-kind contribution of network
    equipment to CDMA Mobile Phone Center as an increase in the
    investment securities and the reimbursement in the amount equal
    to depreciation of such network equipment in accordance with the
    Business Co-Operation Contract between SLD and Saigon Post and
    Telecommunication Service Corp., a Vietnamese counterparty, was
    accounted for as a decrease in the investment. During the year
    ended December 31, 2004, SLD got such reimbursement of
    W4,046 million from CDMA Mobile Phone Center and decreased
    the investment in CDMA Mobile Phone Center by the same amount.
    In addition, translation loss of W4,609 million incurred
    from translating the foreign currency financial statement of SLD
    Telecom PTE Ltd. into Korean won was accounted for as a decrease
    in the investment in CDMA Mobile Phone Center.



|   |                   
|-- | ------------------
|5. | LOANS TO EMPLOYEES



|                                                  |  |      |        |  |      |   |        |      |  |   |        | 
|------------------------------------------------- |  | ---- | ------ |  | ---- | - | ------ | ---- |  | - | ------ | 
|                                                  |  | 2002 |        |  | 2003 |   |        | 2004 | 
|                                                  |  |      |        |  |      |   |        |      | 
|Loans to employees stock ownership association   |  | W    | 45,906 |  |      | W | 33,788 |      |  | W | 22,546 | 
|Loans to employees for housing and other (3 - 4%) |  |      | 10,556 |  |      |   | 8,587  |      |  |   | 8,859  | 
|                                                  |  |      |        |  |      |   |        |      | 
|                                                  |  | W    | 56,462 |  |      | W | 42,375 |      |  | W | 31,405 | 
|                                                  |  |      |        |  |      |   |        |      | 

F-30



---



##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |                       
|-- | ----------------------
|6. | PROPERTY AND EQUIPMENT



|                              |  |         |        |  |      |   |            |      |  |   |            |   |  |   |            |  
|----------------------------- |  | ------- | ------ |  | ---- | - | ---------- | ---- |  | - | ---------- | - |  | - | ---------- | -
|                              |  | Useful  |        |  |      |   |            |      | 
|                              |  | Lives   |        |  |      |   |            |      | 
|                              |  | (Years) |        |  | 2002 |   |            | 2003 |  |   | 2004       |  
|                              |  |         |        |  |      |   |            |      |  |   |            |  
|Land                          |  |         |        |  |      | W | 439,915    |      |  | W | 449,377    |   |  | W | 466,459    |  
|Buildings and structures      |  |         | 15, 30 |  |      |   | 977,045    |      |  |   | 1,081,134  |   |  |   | 1,445,593  |  
|Machinery                     |  |         | 3-6    |  |      |   | 6,998,088  |      |  |   | 8,440,624  |   |  |   | 9,584,526  |  
|Vehicles                      |  |         | 3-4    |  |      |   | 19,368     |      |  |   | 19,741     |   |  |   | 21,710     |  
|Other                         |  |         | 3-4    |  |      |   | 878,006    |      |  |   | 794,495    |   |  |   | 791,829    |  
|Construction in progress      |  |         |        |  |      |   | 352,932    |      |  |   | 323,490    |   |  |   | 138,002    |  
|                              |  |         |        |  |      |   |            |      |  |   |            |  
|Total                         |  |         |        |  |      |   | 9,665,354  |      |  |   | 11,108,861 |   |  |   | 12,448,119 |  
|Less accumulated depreciation |  |         |        |  |      |   | (5,095,937 | )    |  |   | (6,467,314 | ) |  |   | (7,744,197 | )
|                              |  |         |        |  |      |   |            |      |  |   |            |  
|Property and equipment, net   |  |         |        |  |      | W | 4,569,417  |      |  | W | 4,641,547  |   |  | W | 4,703,922  |  
|                              |  |         |        |  |      |   |            |      |  |   |            |  





|                         |       |                                      |           |           |             |   |         |           |  |   |          |         |   |              |           |          |         |   |            |            |   |   |           |           | 
|------------------------ | ----- | ------------------------------------ | --------- | --------- | ----------- | - | ------- | --------- |  | - | -------- | ------- | - | ------------ | --------- | -------- | ------- | - | ---------- | ---------- | - | - | --------- | --------- | 
|                         |       | For the Year Ended December 31, 2003 |          
|                         |       |                                      |          
|                         |       | Beginning                            |           |           |             |   | Ending  |          
|                         |       | Balance                              |           |           | Acquisition |   |         | Disposal  |  |   | Transfer |         |   | Depreciation |           |          | Balance |  
|                         |       |                                      |           |           |             |   |         |           |  |   |          |         |   |              |           |          |         |  
|Land                     |       | W                                    | 439,915   |           |             | W | 6,381   |           |  | W | (4,793   | )       |   | W            | 7,874     |          |         | W |           |            |   | W | 449,377   |          
|Buildings and structures |       |                                      | 778,832   |           |             |   | 9,393   |           |  |   | (4,599   | )       |   |              | 100,341   |          |         |   | (40,166    | )          |   |   | 843,801   |          
|Machinery                |       |                                      | 2,475,663 |           |             |   | 125,332 |           |  |   | (4,996   | )       |   |              | 1,360,240 |          |         |   | (1,285,271 | )          |   |   | 2,670,968 |          
|Vehicles                 |       |                                      | 6,353     |           |             |   | 1,012   |           |  |   | (123     | )       |   |              | 63        |          |         |   | (3,137     | )          |   |   | 4,168     |          
|Other                    |       |                                      | 515,722   |           |             |   | 861,333 |           |  |   | (4,329   | )       |   |              | (916,464  | )        |         |   | (106,519   | )          |   |   | 349,743   |          
|Construction in progress |       |                                      | 352,932   |           |             |   | 644,188 |           |  |   |         |         |   |              | (673,630  | )        |         |   |           |            |   |   | 323,490   |          
|                         |       |                                      |           |           |             |   |         |           |  |   |          |         |   |              |           |          |         |  
|                         | Total |                                      | W         | 4,569,417 |             |   | W       | 1,647,639 |  |   | W        | (18,840 | ) |              | W         | (121,576 | )       |   | W          | (1,435,093 | ) |   | W         | 4,641,547 | 
|                         |       |                                      |           |           |             |   |         |           |  |   |          |         |   |              |           |          |         |  

F-31



---



##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


|                         |       |                                      |           |           |             |   |         |           |  |   |          |         |   |              |           |          |         |   |            |            |   |   |           |           | 
|------------------------ | ----- | ------------------------------------ | --------- | --------- | ----------- | - | ------- | --------- |  | - | -------- | ------- | - | ------------ | --------- | -------- | ------- | - | ---------- | ---------- | - | - | --------- | --------- | 
|                         |       | For the Year Ended December 31, 2004 |          
|                         |       |                                      |          
|                         |       | Beginning                            |           |           |             |   | Ending  |          
|                         |       | Balance                              |           |           | Acquisition |   |         | Disposal  |  |   | Transfer |         |   | Depreciation |           |          | Balance |  
|                         |       |                                      |           |           |             |   |         |           |  |   |          |         |   |              |           |          |         |  
|Land                     |       | W                                    | 449,377   |           |             | W | 3,395   |           |  | W | (2,684   | )       |   | W            | 16,372    |          |         | W |           |            |   | W | 466,460   |          
|Buildings and structures |       |                                      | 843,801   |           |             |   | 7,239   |           |  |   | (7,849   | )       |   |              | 366,296   |          |         |   | (42,945    | )          |   |   | 1,166,542 |          
|Machinery                |       |                                      | 2,670,968 |           |             |   | 108,238 |           |  |   | (8,098   | )       |   |              | 1,143,335 |          |         |   | (1,271,336 | )          |   |   | 2,643,107 |          
|Vehicles                 |       |                                      | 4,168     |           |             |   | 3,744   |           |  |   | (425     | )       |   |              | 674       |          |         |   | (3,370     | )          |   |   | 4,791     |          
|Other                    |       |                                      | 349,743   |           |             |   | 740,752 |           |  |   | (5,481   | )       |   |              | (697,135  | )        |         |   | (102,859   | )          |   |   | 285,020   |          
|Construction in progress |       |                                      | 323,490   |           |             |   | 768,573 |           |  |   | (756     | )       |   |              | (953,305  | )        |         |   |           |            |   |   | 138,002   |          
|                         |       |                                      |           |           |             |   |         |           |  |   |          |         |   |              |           |          |         |  
|                         | Total |                                      | W         | 4,641,547 |             |   | W       | 1,631,941 |  |   | W        | (25,293 | ) |              | W         | (123,763 | )       |   | W          | (1,420,510 | ) |   | W         | 4,703,922 | 
|                         |       |                                      |           |           |             |   |         |           |  |   |          |         |   |              |           |          |         |  



|   |                  
|-- | -----------------
|7. | INTANGIBLE ASSETS



|                           |  |              |           |  |                 |   |          |               |  |   |                  |   |  |      |           |  |      |   |           |  |  |   |           | 
|-------------------------- |  | ------------ | --------- |  | --------------- | - | -------- | ------------- |  | - | ---------------- | - |  | ---- | --------- |  | ---- | - | --------- |  |  | - | --------- | 
|                           |  | Acquisition  |           |  | Accumulated     |   |          | Accumulated   |  |   |                 
|                           |  | Cost at      |           |  | Amortization at |   |          | Impairment at |  |   | Carrying Amounts |  
|                           |  | December 31, |           |  | December 31,    |   |          | December 31,  |  |   |                  |  
|                           |  | 2004         |           |  | 2004            |   |          | 2004          |  |   | 2002             |   |  | 2003 |           |  | 2004 |  
|                           |  |              |           |  |                 |   |          |               |  |   |                  |   |  |      |           |  |      |  
|Goodwill                   |  | W            | 2,401,306 |  |                 | W | (406,897 | )             |  | W | (70              | ) |  | W    | 2,255,868 |  |      | W | 2,129,980 |  |  | W | 1,994,339 | 
|Frequency use rights       |  |              | 1,267,053 |  |                 |   | (103,734 | )             |  |   |                 |   |  |      | 1,259,253 |  |      |   | 1,251,278 |  |  |   | 1,163,319 | 
|Software development costs |  |              | 228,757   |  |                 |   | (122,301 | )             |  |   | (501             | ) |  |      | 91,337    |  |      |   | 137,810   |  |  |   | 105,955   | 
|Other                      |  |              | 490,625   |  |                 |   | (229,909 | )             |  |   | (1,426           | ) |  |      | 114,777   |  |      |   | 155,876   |  |  |   | 259,290   | 
|                           |  |              |           |  |                 |   |          |               |  |   |                  |   |  |      |           |  |      |  
|                           |  | W            | 4,387,741 |  |                 | W | (862,841 | )             |  | W | (1,997           | ) |  | W    | 3,721,235 |  |      | W | 3,674,944 |  |  | W | 3,522,903 | 
|                           |  |              |           |  |                 |   |          |               |  |   |                  |   |  |      |           |  |      |  



|                           |  |                                      |           |  |             |   |        |          |  |   |          |   |  |              |         |   |         |   |          |   |  |   |           | 
|-------------------------- |  | ------------------------------------ | --------- |  | ----------- | - | ------ | -------- |  | - | -------- | - |  | ------------ | ------- | - | ------- | - | -------- | - |  | - | --------- | 
|                           |  | For the Year Ended December 31, 2003 |          
|                           |  |                                      |          
|                           |  | Beginning                            |           |  |             |   | Ending |         
|                           |  | Balance                              |           |  | Acquisition |   |        | Disposal |  |   | Transfer |   |  | Amortization |         |   | Balance |  
|                           |  |                                      |           |  |             |   |        |          |  |   |          |   |  |              |         |   |         |  
|Goodwill                   |  | W                                    | 2,255,868 |  |             | W | 9,374  |          |  | W |         |   |  | W            | (111    | ) |         | W | (135,151 | ) |  | W | 2,129,980 | 
|Software development costs |  |                                      | 91,337    |  |             |   | 26,665 |          |  |   |         |   |  |              | 56,512  |   |         |   | (36,704  | ) |  |   | 137,810   | 
|Frequency use rights       |  |                                      | 1,259,253 |  |             |   |       |          |  |   |         |   |  |              |        |   |         |   | (7,975   | ) |  |   | 1,251,278 | 
|Other                      |  |                                      | 114,777   |  |             |   | 28,982 |          |  |   | (7,275   | ) |  |              | 54,371  |   |         |   | (34,979  | ) |  |   | 155,876   | 
|                           |  |                                      |           |  |             |   |        |          |  |   |          |   |  |              |         |   |         |  
|                           |  | W                                    | 3,721,235 |  |             | W | 65,021 |          |  | W | (7,275   | ) |  | W            | 110,772 |   |         | W | (214,809 | ) |  | W | 3,674,944 | 
|                           |  |                                      |           |  |             |   |        |          |  |   |          |   |  |              |         |   |         |  

|                           |  |                                      |           |  |             |   |        |          |  |   |          |   |  |              |         |  |            |   |          |         |  |   |     |   |  |   |           | 
|-------------------------- |  | ------------------------------------ | --------- |  | ----------- | - | ------ | -------- |  | - | -------- | - |  | ------------ | ------- |  | ---------- | - | -------- | ------- |  | - | --- | - |  | - | --------- | 
|                           |  | For the Year Ended December 31, 2004 |          
|                           |  |                                      |          
|                           |  | Beginning                            |           |  |             |   | Ending |         
|                           |  | Balance                              |           |  | Acquisition |   |        | Disposal |  |   | Transfer |   |  | Amortization |         |  | Impairment |   |          | Balance | 
|                           |  |                                      |           |  |             |   |        |          |  |   |          |   |  |              |         |  |            |   |          |         | 
|Goodwill                   |  | W                                    | 2,129,980 |  |             | W | 647    |          |  | W |         |   |  | W            |        |  |            | W | (136,288 | )       |  | W |    |   |  | W | 1,994,339 | 
|Software development costs |  |                                      | 137,810   |  |             |   | 6,235  |          |  |   | (3,349   | ) |  |              | 10,545  |  |            |   | (45,244  | )       |  |   | (42 | ) |  |   | 105,955   | 
|Frequency use rights       |  |                                      | 1,251,278 |  |             |   |       |          |  |   |         |   |  |              | 7,800   |  |            |   | (95,759  | )       |  |   |    |   |  |   | 1,163,319 | 
|Other                      |  |                                      | 155,876   |  |             |   | 65,494 |          |  |   | (865     | ) |  |              | 93,514  |  |            |   | (54,729  | )       |  |   |    |   |  |   | 259,290   | 
|                           |  |                                      |           |  |             |   |        |          |  |   |          |   |  |              |         |  |            |   |          |         | 
|                           |  | W                                    | 3,674,944 |  |             | W | 72,376 |          |  | W | (4,214   | ) |  | W            | 111,859 |  |            | W | (332,020 | )       |  | W | (42 | ) |  | W | 3,522,903 | 
|                           |  |                                      |           |  |             |   |        |          |  |   |          |   |  |              |         |  |            |   |          |         | 

F-32



---



##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                           |  |        |           |  |             |                                                            |              |  |           |  
|-------------------------- |  | ------ | --------- |  | ----------- | ---------------------------------------------------------- | ------------ |  | --------- | -
|                           |  |        |           |  |             | Residual                                                   |             
|                           |  | Amount |           |  | Description |                                                            | Useful Lives | 
|                           |  |        |           |  |             |                                                            |              | 
|Goodwill                   |  | W      | 1,949,546 |  |             | Goodwill related to acquisition of Shinsegi Telecomm, Inc. |              |  | 16 years  |  
|Frequency use rights       |  |        | 1,155,575 |  |             | IMT license received on December 4, 2001                   |              |  | (note     | )
|Software development costs |  |        | 105,955   |  |             | Software for business use                                  |              |  | 1-5 years |  






|       |                                                                                                                                                                                                                                             
|------ | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(note) | Amortization of the IMT license commenced when the Company
    started its commercial IMT service in December 2003, using the
    straight-line method over the estimated useful life of the IMT
    license which expires in December 2016.



|   |              
|-- | -------------
|8. | BONDS PAYABLE



|                                  |                      |                         |      |      |                 |      |         |              |  |         |           |         |         |           |            |         |         |           |           |         |         |         | 
|--------------------------------- | -------------------- | ----------------------- | ---- | ---- | --------------- | ---- | ------- | ------------ |  | ------- | --------- | ------- | ------- | --------- | ---------- | ------- | ------- | --------- | --------- | ------- | ------- | ------- | 
|                                  |                      | Maturity                |      |      | Annual Interest |      |         |              |  |         |           |        
|                                  |                      | Year                    |      |      | Rate (%)        |      |         | 2002         |  |         | 2003      |         |         | 2004      |           
|                                  |                      |                         |      |      |                 |      |         |              |  |         |           |         |         |           |           
|Domestic general bonds            |                      |                         | 2003 |      |                 |      | 5.0-9.9 |              |  | W       | 910,000   |         |         | W         |           |         |         | W         |          |        
|                                  |                      |                         |     |      |                 | 2004 |         |              |  | 5.0-7.0 |           |         |         | 1,120,000 |            |         |         | 1,120,000 |           |         |         |        | 
|                                  |                      |                         |     |      |                 | 2005 |         |              |  | 6.0     |           |         |         | 500,000   |            |         |         | 500,000   |           |         |         | 500,000 | 
|                                  |                      |                         |     |      |                 | 2006 |         |              |  | 5.0-6.0 |           |         |         | 400,000   |            |         |         | 800,000   |           |         |         | 800,000 | 
|                                  |                      |                         |     |      |                 | 2007 |         |              |  | 5.0-6.0 |           |         |         | 700,000   |            |         |         | 700,000   |           |         |         | 700,000 | 
|                                  |                      |                         |     |      |                 | 2008 |         |              |  | 5.0     |           |         |         |          |            |         |         | 300,000   |           |         |         | 300,000 | 
|                                  |                      |                         |     |      |                 | 2009 |         |              |  | 5.0     |           |         |         |          |            |         |         |          |           |         |         | 300,000 | 
|                                  |                      |                         |     |      |                 | 2011 |         |              |  | 3.0     |           |         |         |          |            |         |         |          |           |         |         | 200,000 | 
|Dollar denominated bonds          |                      |                         |      |      |                 |      |         |              |  |         |           |         |         |           |            |         |         |           |           |        
|                                  | (US$200,078)         |                         |      | 2004 |                 |      |         | 7.75         |  |         |           | 240,173 |         |           |            | 239,653 |         |           |           |        |        
|                                  | (US$300,000)         |                         |      | 2011 |                 |      |         | 4.25         |  |         |           |        |         |           |            |        |         |           |           | 313,140 |        
|Convertible bonds (US $329,450)   |                      |                         | 2009 |      |                 |      |        |              |  |         |          |         |         |           |           |         |         |           | 385,885   |        
|Bonds with stock purchase         |                      |                         |      |      |                 |      |         |              |  |         |           |         |         |           |            |         |         |           |           |        
|                                  | warrants (US $4,000) |                         |      | 2006 |                 |      |         | 6M Libor-0.3 |  |         |           | 4,802   |         |           |            | 4,791   |         |           |           |        |        
|                                  |                      |                         |      |      |                 |      |         |              |  |         |           |         |         |           |           
|                                  |                      |                         |      |      |                 |      |         |              |  |         | 3,874,975 |         |         |           | 3,664,444  |         |         |           | 3,499,025 |        
|                                  |                      | Less discounts on bonds |      |      |                 |      |         |              |  |         |           |         | (60,467 | )         |            |         | (47,553 | )         |           |         | (51,467 | )      
|Less conversion right adjustments |                      |                         |      |      |                 |      |         |              |  |         |          |         |         |           |           |         |         |           | (82,245   | )      
|Add long-term accrued interest    |                      |                         |      |      |                 |      |         |              |  |         | 252       |         |         |           | 491        |         |         |           | 24,808    |        
|                                  |                      |                         |      |      |                 |      |         |              |  |         |           |         |         |           |           
|Net                               |                      |                         |      |      |                 |      |         |              |  |         | 3,814,760 |         |         |           | 3,617,382  |         |         |           | 3,390,121 |        
|Less portion due within one year  |                      |                         |      |      |                 |      |         |              |  |         | (906,264  | )       |         |           | (1,355,514 | )       |         |           | (498,278  | )      
|                                  |                      |                         |      |      |                 |      |         |              |  |         |           |         |         |           |           
|Long-term portion                 |                      |                         |      |      |                 |      |         |              |  | W       | 2,908,496 |         |         | W         | 2,261,868  |         |         | W         | 2,891,843 |        
|                                  |                      |                         |      |      |                 |      |         |              |  |         |           |         |         |           |           



F-33



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##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)








|   |                     
|-- | --------------------
|9. | LONG-TERM BORROWINGS



|                                 |  |               |      |  |                 |  |                     |      |  |     |         |   |  |      |        |   |  |     |   | 
|-------------------------------- |  | ------------- | ---- |  | --------------- |  | ------------------- | ---- |  | --- | ------- | - |  | ---- | ------ | - |  | --- | - | 
|                                 |  | Final         |      |  | Annual Interest |  |                     |      |  |     |         |  
|Lender                           |  | Maturity Year |      |  | Rate (%)        |  |                     | 2002 |  |     | 2003    |   |  | 2004 |       
|                                 |  |               |      |  |                 |  |                     |      |  |     |         |   |  |      |       
|Korea Development Bank           |  |               | 2004 |  |                 |  | 3M Libor + 3.45     |      |  | US$ | 13,434  |   |  | US$  | 4,478  |   |  | US$ |  | 
|Woori Bank                       |  |               | 2005 |  |                 |  | Floating rate + 0.2 |      |  |     | 6,815   |   |  |      | 4,089  |   |  |     |  | 
|                                 |  |               |      |  |                 |  |                     |      |  |     |         |   |  |      |       
|Total in foreign currency        |  |               |      |  |                 |  |                     |      |  | US$ | 20,249  |   |  | US$  | 8,567  |   |  | US$ |  | 
|                                 |  |               |      |  |                 |  |                     |      |  |     |         |   |  |      |       
|Equivalent in Korean won         |  |               |      |  |                 |  |                     |      |  | W   | 24,307  |   |  | W    | 10,262 |   |  | W   |  | 
|Less portion due within one year |  |               |      |  |                 |  |                     |      |  |     | (14,023 | ) |  |      | (8,629 | ) |  |     |  | 
|                                 |  |               |      |  |                 |  |                     |      |  |     |         |   |  |      |       
|Long-term portion                |  |               |      |  |                 |  |                     |      |  | W   | 10,284  |   |  | W    | 1,633  |   |  | W   |  | 
|                                 |  |               |      |  |                 |  |                     |      |  |     |         |   |  |      |       



|    |                      
|--- | ---------------------
|10. | SUBSCRIPTION DEPOSITS



F-34



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##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|             |  |             |          |  |      |  |         |      |  |  |         |  |  |  |         | 
|------------ |  | ----------- | -------- |  | ---- |  | ------- | ---- |  |  | ------- |  |  |  | ------- | 
|             |  | Deposit per |          |  |      |  |         |      | 
|Service type |  | Subscriber  |          |  | 2002 |  |         | 2003 |  |  | 2004    | 
|             |  |             |          |  |      |  |         |      |  |  |         | 
|Cellular     |  |             | W200,000 |  |      |  | W46,850 |      |  |  | W44,197 |  |  |  | W31,440 | 





|    |       
|--- | ------
|11. | LEASES







|    |                                                         
|--- | --------------------------------------------------------
|12. | ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES



|                                 |  |                    |           |  |                       |  |           |      |  |  |           |  |  |      |          |  |      |  |         |  |  |  |         | 
|-------------------------------- |  | ------------------ | --------- |  | --------------------- |  | --------- | ---- |  |  | --------- |  |  | ---- | -------- |  | ---- |  | ------- |  |  |  | ------- | 
|                                 |  | Foreign Currencies |           |  | Korean won Equivalent | 
|                                 |  |                    |           |  |                       | 
|                                 |  | 2002               |           |  | 2003                  |  |           | 2004 |  |  | 2002      |  |  | 2003 |          |  | 2004 | 
|                                 |  |                    |           |  |                       |  |           |      |  |  |           |  |  |      |          |  |      | 
|Cash and cash equivalents        |  |                    | US$46,025 |  |                       |  | US$24,407 |      |  |  | US$4,875  |  |  |      | W55,247  |  |      |  | W29,234 |  |  |  | W5,088  | 
|                                 |  |                    | ¥12       |  |                       |  | ¥8        |      |  |  | ¥6        |  |  |      |         |  |      |  |        |  |  |  |        | 
|                                 |  |                    | EUR2      |  |                       |  | EUR17     |      |  |  |          |  |  |      | 3        |  |      |  | 26      |  |  |  |        | 
|                                 |  |                    |          |  |                       |  | GBP5      |      |  |  |          |  |  |      |         |  |      |  | 10      |  |  |  |        | 
|Short-term financial instruments |  |                    | US$35,281 |  |                       |  | US$31,492 |      |  |  |          |  |  |      | 42,351   |  |      |  | 37,721  |  |  |  |        | 
|Accounts receivable  trade      |  |                    | US$19,477 |  |                       |  | US$8,627  |      |  |  | US$19,284 |  |  |      | 23,382   |  |      |  | 10,333  |  |  |  | 20,129  | 
|                                 |  |                    | ¥240      |  |                       |  | SG$743    |      |  |  |          |  |  |      | 2        |  |      |  | 522     |  |  |  |        | 
|Accounts receivable  other      |  |                    | US$9,639  |  |                       |  | US$12,844 |      |  |  | US$2,989  |  |  |      | 11,571   |  |      |  | 15,385  |  |  |  | 3,120   | 
|Guarantee deposits               |  |                    | US$187    |  |                       |  | US$193    |      |  |  | US$142    |  |  |      | 225      |  |      |  | 232     |  |  |  | 149     | 
|                                 |  |                    |          |  |                       |  | ¥16,337   |      |  |  | ¥15,756   |  |  |      |         |  |      |  | 183     |  |  |  | 159     | 
|                                 |  |                    |           |  |                       |  |           |      |  |  |           |  |  |      |          |  |      | 
|Total assets                     |  |                    |           |  |                       |  |           |      |  |  |           |  |  |      | W132,781 |  |      |  | W93,646 |  |  |  | W28,645 | 
|                                 |  |                    |           |  |                       |  |           |      |  |  |           |  |  |      |          |  |      | 

F-35



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##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


|                                                          |  |                    |            |  |                       |  |            |      |  |  |           |  |  |      |          |  |      |  |          |  |  |  |         | 
|--------------------------------------------------------- |  | ------------------ | ---------- |  | --------------------- |  | ---------- | ---- |  |  | --------- |  |  | ---- | -------- |  | ---- |  | -------- |  |  |  | ------- | 
|                                                          |  | Foreign Currencies |            |  | Korean won Equivalent | 
|                                                          |  |                    |            |  |                       | 
|                                                          |  | 2002               |            |  | 2003                  |  |            | 2004 |  |  | 2002      |  |  | 2003 |          |  | 2004 | 
|                                                          |  |                    |            |  |                       |  |            |      |  |  |           |  |  |      |          |  |      | 
|Accounts payable  trade                                  |  |                    | US$23,975  |  |                       |  | US$15,432  |      |  |  | US$17,406 |  |  |      | W28,779  |  |      |  | W18,485  |  |  |  | W18,169 | 
|                                                          |  |                    | ¥1,198,724 |  |                       |  | ¥555,277   |      |  |  | ¥26,240   |  |  |      | 12,141   |  |      |  | 6,217    |  |  |  | 266     | 
|                                                          |  |                    | EUR180     |  |                       |  |           |      |  |  |          |  |  |      | 227      |  |      |  |         |  |  |  |        | 
|Short-term borrowings                                     |  |                    | US$32,928  |  |                       |  | US$26,853  |      |  |  | US$19,392 |  |  |      | 39,526   |  |      |  | 32,164   |  |  |  | 20,241  | 
|                                                          |  |                    | ¥2,603,467 |  |                       |  | ¥2,255,431 |      |  |  | ¥438,499  |  |  |      | 26,370   |  |      |  | 25,252   |  |  |  | 4,438   | 
|                                                          |  |                    |           |  |                       |  | EUR7       |      |  |  | EUR207    |  |  |      |         |  |      |  | 10       |  |  |  | 294     | 
|                                                          |  |                    |           |  |                       |  |           |      |  |  | GBP260    |  |  |      |         |  |      |  |         |  |  |  | 522     | 
|Accounts payable  other                                  |  |                    | US$37,228  |  |                       |  | US$35,759  |      |  |  | US$13,539 |  |  |      | 44,689   |  |      |  | 42,832   |  |  |  | 14,132  | 
|                                                          |  |                    | ¥229,641   |  |                       |  | ¥20,606    |      |  |  | ¥60,678   |  |  |      | 2,326    |  |      |  | 231      |  |  |  | 614     | 
|                                                          |  |                    | HK$825     |  |                       |  | HK$267     |      |  |  | HK$217    |  |  |      | 127      |  |      |  | 41       |  |  |  | 29      | 
|                                                          |  |                    | CNY61      |  |                       |  | CNY140     |      |  |  | CNY1      |  |  |      | 9        |  |      |  | 20       |  |  |  |        | 
|                                                          |  |                    | GBP1       |  |                       |  | GBP304     |      |  |  | GBP118    |  |  |      | 1        |  |      |  | 648      |  |  |  | 237     | 
|                                                          |  |                    | SG$24      |  |                       |  | SG$5       |      |  |  | SG$5      |  |  |      | 17       |  |      |  | 3        |  |  |  | 3       | 
|                                                          |  |                    | EUR8       |  |                       |  | EUR10      |      |  |  | EUR348    |  |  |      | 11       |  |      |  | 15       |  |  |  | 495     | 
|                                                          |  |                    | AU$1       |  |                       |  | AU$1       |      |  |  |          |  |  |      | 1        |  |      |  | 1        |  |  |  |        | 
|                                                          |  |                    |           |  |                       |  | CHF4       |      |  |  |          |  |  |      |         |  |      |  | 4        |  |  |  |        | 
|Accrued expenses                                          |  |                    |           |  |                       |  | US$71      |      |  |  | US$84     |  |  |      |         |  |      |  | 86       |  |  |  | 88      | 
|                                                          |  |                    |           |  |                       |  | ¥1,300     |      |  |  |          |  |  |      |         |  |      |  | 15       |  |  |  |        | 
|                                                          |  |                    |           |  |                       |  | EUR 23     |      |  |  |          |  |  |      |         |  |      |  | 1        |  |  |  |        | 
|Obligation under capital leases including current portion |  |                    | US$482     |  |                       |  | US$101     |      |  |  |          |  |  |      | 578      |  |      |  | 121      |  |  |  |        | 
|                                                          |  |                    |            |  |                       |  |            |      |  |  |           |  |  |      |          |  |      | 
|Total liabilities                                         |  |                    |            |  |                       |  |            |      |  |  |           |  |  |      | W154,802 |  |      |  | W126,146 |  |  |  | W59,528 | 
|                                                          |  |                    |            |  |                       |  |            |      |  |  |           |  |  |      |          |  |      | 



|    |                                  
|--- | ---------------------------------
|13. | CAPITAL STOCK AND CAPITAL SURPLUS



|                                          |  |      |             |  |      |  |             |      |  |  |             | 
|----------------------------------------- |  | ---- | ----------- |  | ---- |  | ----------- | ---- |  |  | ----------- | 
|                                          |  | 2002 |             |  | 2003 |  |             | 2004 | 
|                                          |  |      |             |  |      |  |             |      | 
|Authorized shares                         |  |      | 220,000,000 |  |      |  | 220,000,000 |      |  |  | 220,000,000 | 
|Issued shares                             |  |      | 89,152,670  |  |      |  | 82,276,711  |      |  |  | 82,276,711  | 
|Outstanding shares, net of treasury stock |  |      | 79,842,063  |  |      |  | 73,614,308  |      |  |  | 73,614,296  | 



F-36



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##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                     |                                                                            |               |            |            |              |   |         |         |  |   |           |           |  
|-------------------- | -------------------------------------------------------------------------- | ------------- | ---------- | ---------- | ------------ | - | ------- | ------- |  | - | --------- | --------- | -
|                     |                                                                            | Number of     |            |            |              |   | Capital |        
|                     |                                                                            | Shares Issued |            |            | Common Stock |   |         | Surplus | 
|                     |                                                                            |               |            |            |              |   |         |         | 
|At January 1, 2002   |                                                                            |               | 89,152,670 |            |              | W | 44,576  |         |  | W | 3,449,698 |          
|                     | Excess unallocated purchase price (note a)                                 |               |            |           |              |   |         |        |  |   |           | (647,025  | )
|                     | Gain on disposal of treasury stock (note b)                                |               |            |           |              |   |         |        |  |   |           | 81,984    |  
|                     | Equity in capital surplus changes of affiliates                            |               |            |           |              |   |         |        |  |   |           | (275      | )
|                     |                                                                            |               |            |            |              |   |         |         | 
|At December 31, 2002 |                                                                            |               | 89,152,670 |            |              |   | 44,576  |         |  |   | 2,884,382 |          
|                     | Excess unallocated purchase price (note a)                                 |               |            |           |              |   |         |        |  |   |           | (230      | )
|                     | Retirement of treasury stock (note c)                                      |               |            | (7,002,235 | )            |   |         |        |  |   |           |          |  
|                     | Issuance of common stock for the merger with SK IMT Co.,
    Ltd. (note d) |               |            | 126,276    |              |   |         | 63      |  |   |           | 31,809    |  
|                     | Gain on disposal of investments in common stock of subsidiary              |               |            |           |              |   |         |        |  |   |           | 58        |  
|                     | Equity in capital surplus changes of affiliates                            |               |            |           |              |   |         |        |  |   |           | (4,463    | )
|                     |                                                                            |               |            |            |              |   |         |         | 
|At December 31, 2003 |                                                                            |               | 82,276,711 |            |              |   | 44,639  |         |  |   | 2,911,556 |          
|                     | Excess unallocated purchase price (note a)                                 |               |            |           |              |   |         |        |  |   |           | (77       | )
|                     | Considerations for conversion right (note e)                               |               |            |           |              |   |         |        |  |   |           | 67,279    |  
|                     | Equity in capital surplus changes of affiliates                            |               |            |           |              |   |         |        |  |   |           | (10,457   | )
|                     |                                                                            |               |            |            |              |   |         |         | 
|                     | At December 31, 2004                                                       |               |            | 82,276,711 |              |   | W       | 44,639  |  |   | W         | 2,968,301 |  
|                     |                                                                            |               |            |            |              |   |         |         | 






|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|-------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(note a) | The excess unallocated purchase price of W299,121 million
    for the additional 19.2% equity interest acquired in 2001 and
    W647,025 million for the distribution of
    2,677,653 shares of treasury stock to minority shareholders
    of Shinsegi Telecomm, Inc. upon the merger dated
    January 13, 2002, were deducted from capital surplus, in
    accordance with Korean GAAP. In addition, during the years ended
    December 31, 2003 and 2004, the Company paid
    W230 million and W77 million, respectively, to certain
    former shareholders of Shinsegi Telecomm, Inc. in accordance
    with the ruling of the court and deducted it from capital
    surplus in accordance with Korean GAAP.
|        
|(note b) | The gain on disposal of treasury stock of W81,984 million
    resulting from the distribution of treasury stock to minority
    shareholders of Shinsegi Telecomm, Inc. upon the merger dated
    January 13, 2002 was recorded as an increase in other
    capital surplus.                                                                                                                                                                                                                                                                                                                                                                                                                                          
|        
|(note c) | The Company retired 4,457,635 shares and
    2,544,600 shares of treasury stock on January 3, 2003
    and August 20, 2003, respectively, and reduced
    unappropriated retained earnings in accordance with the Korean
    Commercial Laws.                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|        
|(note d) | The excess of acquired net assets over the par value of
    W63 million for the issuance of 126,276 shares of new
    common stock to minority shareholders of SK IMT Co., Ltd.
    upon the merger dated May 1, 2003, was added to capital
    surplus in accordance with Korean GAAP.                                                                                                                                                                                                                                                                                                                                                                                                                               
|        
|(note e) | The Company issued zero coupon convertible bonds in the
    principal amount of US$329,450,000 at US$324,923,469 with an
    initial conversion price of W235,625 per share of the
    Companys common stock on May 27, 2004 and the
    considerations for conversion right of W67,279 million was
    added to capital surplus in accordance with Korean GAAP (See
    Note 2(j)).                                                                                                                                                                                                                                                                                                                                 

F-37



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##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|    |                  
|--- | -----------------
|14. | RETAINED EARNINGS



|               |  |      |           |  |      |   |           |      |  |   |           | 
|-------------- |  | ---- | --------- |  | ---- | - | --------- | ---- |  | - | --------- | 
|               |  | 2002 |           |  | 2003 |   |           | 2004 | 
|               |  |      |           |  |      |   |           |      | 
|Appropriated   |  | W    | 3,379,922 |  |      | W | 4,743,822 |      |  | W | 4,733,936 | 
|Unappropriated |  |      | 1,493,283 |  |      |   | 396,089   |      |  |   | 1,418,962 | 
|               |  |      |           |  |      |   |           |      | 
|               |  | W    | 4,873,205 |  |      | W | 5,139,911 |      |  | W | 6,152,898 | 
|               |  |      |           |  |      |   |           |      | 



|                                               |  |      |           |  |      |   |           |      |  |   |           | 
|---------------------------------------------- |  | ---- | --------- |  | ---- | - | --------- | ---- |  | - | --------- | 
|                                               |  | 2002 |           |  | 2003 |   |           | 2004 | 
|                                               |  |      |           |  |      |   |           |      | 
|Legal reserve                                  |  | W    | 17,200    |  |      | W | 22,288    |      |  | W | 22,320    | 
|Reserve for improvement of financial structure |  |      | 33,000    |  |      |   | 33,000    |      |  |   | 33,000    | 
|Reserve for business rationalization           |  |      | 169,493   |  |      |   |          |      |  |   |          | 
|Reserve for loss on foreign investment         |  |      | 29,192    |  |      |   |          |      |  |   |          | 
|Reserve for loss on disposal of treasury stock |  |      | 240,000   |  |      |   | 221,197   |      |  |   | 477,182   | 
|Reserve for research and manpower development  |  |      | 365,300   |  |      |   | 559,198   |      |  |   | 776,296   | 
|Reserve for business expansion                 |  |      | 2,525,737 |  |      |   | 3,908,139 |      |  |   | 3,425,138 | 
|                                               |  |      |           |  |      |   |           |      | 
|                                               |  | W    | 3,379,922 |  |      | W | 4,743,822 |      |  | W | 4,733,936 | 
|                                               |  |      |           |  |      |   |           |      | 



|   |              
|-- | -------------
|a. | Legal Reserve





|   |                                               
|-- | ----------------------------------------------
|b. | Reserve for Improvement of Financial Structure





|   |                                     
|-- | ------------------------------------
|c. | Reserve for Business Rationalization



F-38



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##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |                                                                                                                      
|-- | ---------------------------------------------------------------------------------------------------------------------
|d. | Reserves for Loss on Foreign Investment, Loss on Disposal of
    Treasury Stock and Research and Manpower Development





|   |                               
|-- | ------------------------------
|e. | Reserve for Business Expansion





|    |               
|--- | --------------
|15. | TREASURY STOCK















|    |              
|--- | -------------
|16. | STOCK OPTIONS



F-39



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##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






|               |  |              |       |            |                   |   |       |              |                         |   |            |  |  |            |       |  |      |   |     |      |  |   |       |  |  |   |       |  |  |   |       | 
|-------------- |  | ------------ | ----- | ---------- | ----------------- | - | ----- | ------------ | ----------------------- | - | ---------- |  |  | ---------- | ----- |  | ---- | - | --- | ---- |  | - | ----- |  |  | - | ----- |  |  | - | ----- | 
|               |  |              |       | Recognized |                   |   |       |              | Stock Option in Capital |  
|               |  | Total        |       |            | Compensation Cost |   |       | Compensation |                         |   | Adjustment | 
|               |  | Compensation |       |            |                   |   |       | Cost to be   |                         |   |            | 
|Grant Date     |  | Cost         |       |            | 2002              |   |       | 2003         |                         |   | 2004       |  |  | Recognized |       |  | 2002 |   |     | 2003 |  |   | 2004  | 
|               |  |              |       |            |                   |   |       |              |                         |   |            |  |  |            |       |  |      |   |     |      |  |   |       | 
|March 17, 2000 |  | W            | 1,533 |            |                   | W | 511   |              |                         | W | 128        |  |  | W          |      |  |      | W |    |      |  | W | 1,405 |  |  | W | 1,533 |  |  | W | 1,533 | 
|March 16, 2001 |  |              | 234   |            |                   |   | 79    |              |                         |   | 79         |  |  |            | 10    |  |      |   |    |      |  |   | 145   |  |  |   | 224   |  |  |   | 234   | 
|March 8, 2002  |  |              | 3,246 |            |                   |   | 902   |              |                         |   | 1,082      |  |  |            | 1,082 |  |      |   | 180 |      |  |   | 902   |  |  |   | 1,984 |  |  |   | 3,066 | 
|               |  |              |       |            |                   |   |       |              |                         |   |            |  |  |            |       |  |      |   |     |      |  |   |       | 
|               |  | W            | 5,013 |            |                   | W | 1,492 |              |                         | W | 1,289      |  |  | W          | 1,092 |  |      | W | 180 |      |  | W | 2,452 |  |  | W | 3,741 |  |  | W | 4,833 | 
|               |  |              |       |            |                   |   |       |              |                         |   |            |  |  |            |       |  |      |   |     |      |  |   |       | 



|                                                     |  |      |           |  |      |   |           |      |  |   |           | 
|---------------------------------------------------- |  | ---- | --------- |  | ---- | - | --------- | ---- |  | - | --------- | 
|                                                     |  | 2002 |           |  | 2003 |   |           | 2004 | 
|                                                     |  |      |           |  |      |   |           |      | 
|Pro forma ordinary income (in millions of Koran won) |  | W    | 2,215,401 |  |      | W | 2,751,221 |      |  | W | 2,121,238 | 
|Pro forma ordinary income per common shares          |  |      | 17,603    |  |      |   | 26,145    |      |  |   | 20,234    | 
|Pro forma net income (in millions of Korean won)     |  |      | 1,483,784 |  |      |   | 1,962,986 |      |  |   | 1,489,542 | 
|Pro forma net income per common shares               |  |      | 17,607    |  |      |   | 26,145    |      |  |   | 20,234    | 



|    |             
|--- | ------------
|17. | INCOME TAXES



|                      |  |      |         |  |      |   |         |      |  |   |         | 
|--------------------- |  | ---- | ------- |  | ---- | - | ------- | ---- |  | - | ------- | 
|                      |  | 2002 |         |  | 2003 |   |         | 2004 | 
|                      |  |      |         |  |      |   |         |      | 
|Currently payable     |  | W    | 616,544 |  |      | W | 668,180 |      |  | W | 551,405 | 
|Deferred              |  |      | 81,963  |  |      |   | 120,879 |      |  |   | 78,356  | 
|                      |  |      |         |  |      |   |         |      | 
|Recorded income taxes |  | W    | 698,507 |  |      | W | 789,059 |      |  | W | 629,761 | 
|                      |  |      |         |  |      |   |         |      | 

F-40



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##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                                                                     |                                                             |      |           |          |      |   |           |          |   |   |           |          |  
|------------------------------------------------------------------------------------ | ----------------------------------------------------------- | ---- | --------- | -------- | ---- | - | --------- | -------- | - | - | --------- | -------- | -
|                                                                                     |                                                             | 2002 |           |          | 2003 |   |           | 2004     |  
|                                                                                     |                                                             |      |           |          |      |   |           |          |  
|Income before income taxes                                                           |                                                             | W    | 2,218,768 |          |      | W | 2,754,336 |          |   | W | 2,123,175 |         
|Additions (deductions):                                                              |                                                             |      |           |          |      |   |           |          |   |   |           |         
|                                                                                     | Allowance for bad debts                                     |      |           | (66,940  | )    |   |           | 2,081    |   |   |           | (3,406   | )
|                                                                                     | Loss on impairment of investment securities                 |      |           | 68,882   |      |   |           | (53,161  | ) |   |           | 7,866    |  
|                                                                                     | Accrued interest income                                     |      |           | (2,107   | )    |   |           | (3,096   | ) |   |           | (2,133   | )
|                                                                                     | Foreign exchange loss                                       |      |           | (8,211   | )    |   |           | (8,449   | ) |   |           | (2,815   | )
|                                                                                     | Depreciation                                                |      |           | (3,803   | )    |   |           | (34,070  | ) |   |           | (162,670 | )
|                                                                                     | Equity in losses (earnings) of affiliates                   |      |           | (813     | )    |   |           | 6,975    |   |   |           | 11,954   |  
|                                                                                     | Amortization of goodwill                                    |      |           | 128,662  |      |   |           | 128,662  |   |   |           | 128,662  |  
|                                                                                     | Loss on impairment of tangible assets and intangible assets |      |           | 8,212    |      |   |           | 22,459   |   |   |           |         |  
|                                                                                     | Tax-free reserves                                           |      |           | (175,096 | )    |   |           | (468,775 | ) |   |           | (45,765  | )
|                                                                                     | Net operating loss carryforwards                            |      |           | (7,060   | )    |   |           |         |   |   |           | (14,750  | )
|                                                                                     | Other                                                       |      |           | 101,950  |      |   |           | 135,324  |   |   |           | 54,373   |  
|                                                                                     |                                                             |      |           |          |      |   |           |          |  
|Net taxable income                                                                   |                                                             | W    | 2,262,444 |          |      | W | 2,482,286 |          |   | W | 2,094,493 |         
|                                                                                     |                                                             |      |           |          |      |   |           |          |  
|Corporate income taxes at statutory Korean corporate income tax
    rates of 27%     |                                                             | W    | 612,890   |          |      | W | 670,144   |          |   | W | 566,280   |         
|Tax credit for investments, technology and human resource
    development and others |                                                             |      | (62,974   | )        |      |   | (75,149   | )        |   |   | (77,490   | )       
|                                                                                     |                                                             |      |           |          |      |   |           |          |  
|Corporate income taxes payable                                                       |                                                             |      | 549,916   |          |      |   | 594,995   |          |   |   | 488,790   |         
|Resident surtax payable                                                              |                                                             |      | 54,992    |          |      |   | 59,500    |          |   |   | 48,879    |         
|Special surtax for agriculture and fishery industries and other                      |                                                             |      | 11,636    |          |      |   | 13,685    |          |   |   | 13,736    |         
|                                                                                     |                                                             |      |           |          |      |   |           |          |  
|Total income taxes currently payable                                                 |                                                             | W    | 616,544   |          |      | W | 668,180   |          |   | W | 551,405   |         
|                                                                                     |                                                             |      |           |          |      |   |           |          |  

F-41



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##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                                                                     |  |      |         |   |      |   |         |      |  |   |         |  
|------------------------------------------------------------------------------------ |  | ---- | ------- | - | ---- | - | ------- | ---- |  | - | ------- | -
|                                                                                     |  | 2002 |         |   | 2003 |   |         | 2004 | 
|                                                                                     |  |      |         |   |      |   |         |      | 
|Income taxes at statutory income tax rate of 27%                                     |  | W    | 599,067 |   |      | W | 743,671 |      |  | W | 573,257 |  
|Resident surtax payable                                                              |  |      | 59,907  |   |      |   | 74,367  |      |  |   | 57,326  |  
|Tax credit for investments, technology and human resource
    development and others |  |      | (37,309 | ) |      |   | (83,826 | )    |  |   | (89,080 | )
|Special surtax for agriculture and fishery industries and other                      |  |      | 11,636  |   |      |   | 13,685  |      |  |   | 13,736  |  
|Goodwill amortization not deductible for tax purpose                                 |  |      | 38,213  |   |      |   | 38,213  |      |  |   | 35,382  |  
|Undistributed earnings (unrecognized deficit) of subsidiaries                        |  |      | 12,295  |   |      |   | (5,909  | )    |  |   | 11,011  |  
|Effect of the change in income tax rate (note a)                                     |  |      |        |   |      |   | (20,204 | )    |  |   |        |  
|Other permanent differences                                                          |  |      | 1,520   |   |      |   | 15,327  |      |  |   | 28,581  |  
|Increase (decrease) in valuation allowance                                           |  |      | 13,178  |   |      |   | 13,735  |      |  |   | (452    | )
|                                                                                     |  |      |         |   |      |   |         |      | 
|Recorded income taxes                                                                |  | W    | 698,507 |   |      | W | 789,059 |      |  | W | 629,761 |  
|                                                                                     |  |      |         |   |      |   |         |      | 
|Effective tax rate                                                                   |  |      | 31.48   | % |      |   | 28.65   | %    |  |   | 29.66   | %
|                                                                                     |  |      |         |   |      |   |         |      | 






|         |                                                                                                                                                                                                                                                                                                                                                                          
|-------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(note a) | Pursuant to a revision in the Korean Corporate Income Tax Law
    during 2003, statutory corporate income tax rate including
    resident surtax is changed from 29.5% to 27.5%, effective
    January 1, 2005. Such change in statutory corporate income
    tax rate resulted in a decrease in deferred tax liabilities as
    of December 31, 2003 by W20,204 million.

F-42



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##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                                              |                                  |      |          |         |      |   |          |         |   |   |          |         |  
|------------------------------------------------------------- | -------------------------------- | ---- | -------- | ------- | ---- | - | -------- | ------- | - | - | -------- | ------- | -
|                                                              |                                  | 2002 |          |         | 2003 |   |          | 2004    |  
|                                                              |                                  |      |          |         |      |   |          |         |  
|Allowance for doubtful accounts                               |                                  | W    | 23,251   |         |      | W | 22,039   |         |   | W | 19,649   |        
|Write-off of doubtful accounts                                |                                  |      | 9,715    |         |      |   | 9,587    |         |   |   | 9,764    |        
|Trading securities                                            |                                  |      |         |         |      |   | 1        |         |   |   | (561     | )      
|Accrued interest income                                       |                                  |      | (2,902   | )       |      |   | (2,026   | )       |   |   | (2,463   | )      
|Depreciation                                                  |                                  |      | 12,609   |         |      |   | 3,712    |         |   |   | (40,220  | )      
|Loss on disposition of properties                             |                                  |      |         |         |      |   |          |         |   |   | 11,480   |        
|Loss on impairment of investment securities                   |                                  |      | 48,588   |         |      |   | 30,757   |         |   |   | 32,851   |        
|Foreign currency translation loss                             |                                  |      | 3,345    |         |      |   | 774      |         |   |   |         |        
|Equity in losses of affiliates                                |                                  |      | (5,090   | )       |      |   | (6,593   | )       |   |   | (12,671  | )      
|Unrecognized deficit (undistributed earnings) of subsidiaries |                                  |      | (9,012   | )       |      |   | (3,364   | )       |   |   | (9,434   | )      
|Tax free reserve for research and manpower development        |                                  |      | (133,920 | )       |      |   | (182,518 | )       |   |   | (195,103 | )      
|Tax free reserve for loss on disposal of treasury stock       |                                  |      | (64,775  | )       |      |   | (130,373 | )       |   |   | (130,372 | )      
|Tax credit carryforwards                                      |                                  |      |         |         |      |   | 1,162    |         |   |   | 5,003    |        
|Net operating loss carryforwards                              |                                  |      | 17,290   |         |      |   | 29,575   |         |   |   | 25,371   |        
|Other                                                         |                                  |      | 20,851   |         |      |   | 39,693   |         |   |   | 18,510   |        
|                                                              |                                  |      |          |         |      |   |          |         |  
|Total deferred tax assets (liabilities)                       |                                  |      | (80,050  | )       |      |   | (187,574 | )       |   |   | (268,196 | )      
|Valuation allowance for:                                      |                                  |      |          |         |      |   |          |         |   |   |          |        
|                                                              | Depreciation                     |      |          | (1,081  | )    |   |          |        |   |   |          | (5,321  | )
|                                                              | Net operating loss carryforwards |      |          | (17,290 | )    |   |          | (29,575 | ) |   |          | (24,980 | )
|                                                              | Other                            |      |          | (6,349  | )    |   |          | (8,880  | ) |   |          | (7,555  | )
|                                                              |                                  |      |          |         |      |   |          |         |  
|Net deferred tax assets (liabilities)                         |                                  | W    | (104,770 | )       |      | W | (226,029 | )       |   | W | (306,052 | )      
|                                                              |                                  |      |          |         |      |   |          |         |  



|                         |  |                    |        |  |               |   |       | 
|------------------------ |  | ------------------ | ------ |  | ------------- | - | ----- | 
|                         |  | Net Operating Loss |        |  | Tax Credit    |  
|Year Ending December 31, |  | Carryforwards      |        |  | Carryforwards |  
|                         |  |                    |        |  |               |  
|2005                     |  | W                  | 753    |  |               | W |      | 
|2006                     |  |                    | 18,567 |  |               |   |      | 
|2007                     |  |                    | 24,611 |  |               |   |      | 
|2008                     |  |                    | 45,373 |  |               |   |      | 
|2009                     |  |                    | 2,953  |  |               |   | 5,003 | 
|                         |  |                    |        |  |               |  
|Total                    |  | W                  | 92,257 |  |               | W | 5,003 | 
|                         |  |                    |        |  |               |  

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##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|    |                 
|--- | ----------------
|18. | INCOME PER SHARE



Net income per share


|                                                     |  |      |            |  |      |   |            |      |  |   |            | 
|---------------------------------------------------- |  | ---- | ---------- |  | ---- | - | ---------- | ---- |  | - | ---------- | 
|                                                     |  | 2002 |            |  | 2003 |   |            | 2004 | 
|                                                     |  |      |            |  |      |   |            |      | 
|Net income                                           |  | W    | 1,487,151  |  |      | W | 1,966,100  |      |  | W | 1,491,479  | 
|Weighted average number of common shares outstanding |  |      | 84,270,450 |  |      |   | 75,078,219 |      |  |   | 73,614,297 | 
|                                                     |  |      |            |  |      |   |            |      | 
|Net income per share                                 |  | W    | 17,647     |  |      | W | 26,187     |      |  | W | 20,261     | 
|                                                     |  |      |            |  |      |   |            |      | 

Ordinary income per share


|                                                     |  |      |            |   |      |   |            |      |  |   |            | 
|---------------------------------------------------- |  | ---- | ---------- | - | ---- | - | ---------- | ---- |  | - | ---------- | 
|                                                     |  | 2002 |            |   | 2003 |   |            | 2004 | 
|                                                     |  |      |            |   |      |   |            |      | 
|Net income                                           |  | W    | 1,487,151  |   |      | W | 1,966,100  |      |  | W | 1,491,479  | 
|Extraordinary gain                                   |  |      | (504       | ) |      |   |           |      |  |   |           | 
|Income tax effect of extraordinary gain              |  |      | 149        |   |      |   |           |      |  |   |           | 
|                                                     |  |      |            |   |      |   |            |      | 
|Ordinary income                                      |  |      | 1,486,796  |   |      |   | 1,966,100  |      |  |   | 1,491,479  | 
|Weighted average number of common shares outstanding |  |      | 84,270,450 |   |      |   | 75,078,219 |      |  |   | 73,614,297 | 
|                                                     |  |      |            |   |      |   |            |      | 
|Ordinary income per share                            |  | W    | 17,643     |   |      | W | 26,187     |      |  | W | 20,261     | 
|                                                     |  |      |            |   |      |   |            |      | 



|          |                                                         |      |  |           |        |          |           |            |          |           |        |          |  |  |  |            |  
|--------- | ------------------------------------------------------- | ---- |  | --------- | ------ | -------- | --------- | ---------- | -------- | --------- | ------ | -------- |  |  |  | ---------- | -
|          |                                                         |      |  |           |        | Weighted |           |            | Weighted |          
|          |                                                         |      |  | Number of |        |          | Number of |            |          | Number of |       
|          |                                                         | Date |  |           | Shares |          |           | Days       |          |           | Shares |         
|          |                                                         |      |  |           |        |          |           |            |          |           |        |         
|For 2002: |                                                         |      |  |           |        |          |           |            |          |           |        |          |  |  |  |           
|          | At January 1, 2002                                      |      |  |          |        |          |           | 89,152,670 |          |           |        | 365/ 365 |  |  |  | 89,152,670 |  
|          | Treasury stock, at the beginning                        |      |  |          |        |          |           | (6,159,266 | )        |           |        | 365/ 365 |  |  |  | (6,159,266 | )
|          | Distribution of treasury stock for merger with Shinsegi |      |  | Jan. 13   |        |          |           | 2,673,474  |          |           |        | 349/ 365 |  |  |  | 2,556,280  |  
|          | Treasury stock                                          |      |  | (note a)  |        |          |           | (5,824,815 | )        |           |        |         |  |  |  | (1,279,234 | )
|          |                                                         |      |  |           |        |          |           |            |          |           |        |         
|          | Total                                                   |      |  |           |        |          |           | 79,842,063 |          |           |        |          |  |  |  | 84,270,450 |  
|          |                                                         |      |  |           |        |          |           |            |          |           |        |         

F-44



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##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


|          |                                  |       |  |           |        |          |            |            |            |           |        |         |  |  |            |            |            | 
|--------- | -------------------------------- | ----- |  | --------- | ------ | -------- | ---------- | ---------- | ---------- | --------- | ------ | ------- |  |  | ---------- | ---------- | ---------- | 
|          |                                  |       |  |           |        | Weighted |            |            | Weighted   |          
|          |                                  |       |  | Number of |        |          | Number of  |            |            | Number of |       
|          |                                  | Date  |  |           | Shares |          |            | Days       |            |           | Shares |        
|          |                                  |       |  |           |        |          |            |            |            |           |        |        
|For 2003: |                                  |       |  |           |        |          |            |            |            |           |        |         |  |  |            |           
|          | At January 1, 2003               |       |  |          |        |          |            | 89,152,670 |            |           |        | 365/365 |  |  |            | 89,152,670 |           
|          | Treasury stock, at the beginning |       |  |          |        |          |            | (9,310,607 | )          |           |        | 365/365 |  |  |            | (9,310,607 | )         
|          | Purchase of treasury stock       |       |  | Jan. 10   |        |          |            | (3,809,288 | )          |           |        | 356/365 |  |  |            | (3,715,360 | )         
|          | Purchase of fractional shares    |       |  | Feb. 3    |        |          |            | (52        | )          |           |        | 332/365 |  |  |            | (47        | )         
|          | Purchase of fractional shares    |       |  | May 1     |        |          |            | (91        | )          |           |        | 233/365 |  |  |            | (58        | )         
|          | Issuance of common stock         |       |  | May 1     |        |          |            | 126,276    |            |           |        | 233/365 |  |  |            | 80,609     |           
|          | Treasury stock                   |       |  | (note a   | )      |          |            | (2,544,600 | )          |           |        |        |  |  |            | (1,128,988 | )         
|          |                                  |       |  |           |        |          |            |            |            |           |        |        
|          |                                  | Total |  |           |        |          |            |            | 73,614,308 |           |        |         |  |  |            |            | 75,078,219 | 
|          |                                  |       |  |           |        |          |            |            |            |           |        |        
|For 2004: |                                  |       |  |           |        |          |            |            |            |           |        |         |  |  |            |           
|          | At January 1, 2004               |       |  |          |        |          |            | 82,276,711 |            |           |        | 366/366 |  |  |            | 82,276,711 |           
|          | Treasury stock, at the beginning |       |  |          |        |          |            | (8,662,403 | )          |           |        | 366/366 |  |  |            | (8,662,403 | )         
|          | Purchase of fractional shares    |       |  | Feb. 20   |        |          |            | (12        | )          |           |        | 316/366 |  |  |            | (11        | )         
|          |                                  |       |  |           |        |          |            |            |            |           |        |        
|Total     |                                  |       |  |           |        |          | 73,614,296 |            |            |           |        |         |  |  | 73,614,297 |           
|          |                                  |       |  |           |        |          |            |            |            |           |        |        






|         |                                                                                                                                                                                          
|-------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(note a) | Such treasury stock was acquired or disposed of on several
    different dates in 2002 and 2003, and the weighted number of
    shares was calculated according to each transaction date.



Diluted net income per share


|                                                                           |  |      |            |  |      |   |            |      |  |   |            | 
|-------------------------------------------------------------------------- |  | ---- | ---------- |  | ---- | - | ---------- | ---- |  | - | ---------- | 
|                                                                           |  | 2002 |            |  | 2003 |   |            | 2004 | 
|                                                                           |  |      |            |  |      |   |            |      | 
|Adjusted net income                                                        |  | W    | 1,487,230  |  |      | W | 1,966,100  |      |  | W | 1,499,026  | 
|Adjusted weighted average number of common shares outstanding
    (note b) |  |      | 84,277,598 |  |      |   | 75,078,219 |      |  |   | 74,596,777 | 
|                                                                           |  |      |            |  |      |   |            |      | 
|Diluted net income per share                                               |  | W    | 17,647     |  |      | W | 26,187     |      |  | W | 20,095     | 
|                                                                           |  |      |            |  |      |   |            |      | 

Diluted ordinary income per share


|                                                                           |  |      |            |  |      |   |            |      |  |   |            | 
|-------------------------------------------------------------------------- |  | ---- | ---------- |  | ---- | - | ---------- | ---- |  | - | ---------- | 
|                                                                           |  | 2002 |            |  | 2003 |   |            | 2004 | 
|                                                                           |  |      |            |  |      |   |            |      | 
|Adjusted ordinary income                                                   |  | W    | 1,486,875  |  |      | W | 1,966,100  |      |  | W | 1,499,026  | 
|Adjusted weighted average number of common shares outstanding
    (note b) |  |      | 84,277,598 |  |      |   | 75,078,219 |      |  |   | 74,596,777 | 
|                                                                           |  |      |            |  |      |   |            |      | 
|Diluted ordinary income per share                                          |  | W    | 17,643     |  |      | W | 26,187     |      |  | W | 20,095     | 
|                                                                           |  |      |            |  |      |   |            |      | 






|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|-------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(note b) | In 2002 and 2004, for the calculation of diluted income per
    share, the weighted average number of common shares outstanding
    is adjusted for dilutive effects of assuming the exercise of
    stock options on January 1, 2002 and the conversion of and
    convertible bonds on May 27, 2004 (see Note 8),
    respectively. The weighted average number of common shares
    outstanding for basic and diluted earnings per share
    calculations are the same for the year ended December 31,
    2003 as there is no item that dilutes the earnings per share for
    that year.

F-45



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##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




Diluted net income per share


|         |                                   |                 |  |                  |                  |  |                 |                  |  |  |  |         | 
|-------- | --------------------------------- | --------------- |  | ---------------- | ---------------- |  | --------------- | ---------------- |  |  |  | ------- | 
|         |                                   |                 |  | Average Weighted |                  |  |                
|         |                                   | Net Income      |  |                  | Number of Shares |  |                 | Per-share Amount | 
|         |                                   |                 |  |                  |                  |  |                 |                  | 
|         |                                   | (In Millions of |  |                  |                  |  | (In Korean Won) |                 
|         |                                   | Korean Won)     |  |                  |                  |  |                
|For 2002 |                                   |                 |  |                  |                  |  |                 |                  |  |  |  |        
|         | Basic net income per share        |                 |  | W1,487,151       |                  |  |                 | 84,270,450       |  |  |  | W17,647 | 
|         |                                   |                 |  |                  |                  |  |                 |                  | 
|         | Effect of stock option            |                 |  | 79               |                  |  |                 | 7,148            |  |  |  |         | 
|         |                                   |                 |  |                  |                  |  |                 |                  | 
|         | Diluted net income per share      |                 |  | W1,487,230       |                  |  |                 | 84,277,598       |  |  |  | W17,647 | 
|         |                                   |                 |  |                  |                  |  |                 |                  | 
|For 2004 |                                   |                 |  |                  |                  |  |                 |                  |  |  |  |        
|         | Basic net income per share        |                 |  | W1,491,479       |                  |  |                 | 73,614,297       |  |  |  | W20,261 | 
|         |                                   |                 |  |                  |                  |  |                 |                  | 
|         | Effect of convertible bonds       |                 |  | 7,547            |                  |  |                 | 982,480          |  |  |  |         | 
|         |                                   |                 |  |                  |                  |  |                 |                  | 
|         | Diluted net income per share      |                 |  | W1,499,026       |                  |  |                 | 74,596,777       |  |  |  | W20,095 | 
|         |                                   |                 |  |                  |                  |  |                 |                  | 
|         | Diluted ordinary income per share |                 |  |                  |                  |  |                 |                  |  |  |  |         | 

|         |                                   |                 |   |                  |                  |  |                 |                  |  |  |   |        | 
|-------- | --------------------------------- | --------------- | - | ---------------- | ---------------- |  | --------------- | ---------------- |  |  | - | ------ | 
|         |                                   |                 |   | Average Weighted |                  |  |                
|         |                                   | Net Income      |   |                  | Number of Shares |  |                 | Per-share Amount | 
|         |                                   |                 |   |                  |                  |  |                 |                  | 
|         |                                   | (In Millions of |   |                  |                  |  | (In Korean Won) |                 
|         |                                   | Korean Won)     |   |                  |                  |  |                
|For 2002 |                                   |                 |   |                  |                  |  |                 |                  |  |  |   |       
|         | Basic ordinary income per share   |                 | W | 1,486,796        |                  |  |                 | 84,270,450       |  |  | W | 17,643 | 
|         |                                   |                 |   |                  |                  |  |                 |                  | 
|         | Effect of stock option            |                 |   | 79               |                  |  |                 | 7,148            |  |  |   |        | 
|         |                                   |                 |   |                  |                  |  |                 |                  | 
|         | Diluted ordinary income per share |                 | W | 1,486,875        |                  |  |                 | 84,277,598       |  |  | W | 17,643 | 
|         |                                   |                 |   |                  |                  |  |                 |                  | 
|For 2004 |                                   |                 |   |                  |                  |  |                 |                  |  |  |   |       
|         | Basic ordinary income per share   |                 | W | 1,491,479        |                  |  |                 | 73,614,297       |  |  | W | 20,261 | 
|         |                                   |                 |   |                  |                  |  |                 |                  | 
|         | Effect of convertible bonds       |                 |   | 7,547            |                  |  |                 | 982,480          |  |  |   |        | 
|         |                                   |                 |   |                  |                  |  |                 |                  | 
|         | Diluted ordinary income per share |                 | W | 1,499,026        |                  |  |                 | 74,596,777       |  |  | W | 20,095 | 
|         |                                   |                 |   |                  |                  |  |                 |                  | 

F-46



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##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|    |                    
|--- | -------------------
|19. | DIVIDEND DISCLOSURE



|       |  |                           |  |                    |            |        |       |   |     |          |  |  |           |  |  |   |         | 
|------ |  | ------------------------- |  | ------------------ | ---------- | ------ | ----- | - | --- | -------- |  |  | --------- |  |  | - | ------- | 
|Fiscal |  |                           |  | Number of          |            |        | Face  |   |     | Dividend |  |  |          
|Year   |  | Dividend Type             |  | Shares Outstanding |            |        | Value |   |     | Ratio    |  |  | Dividends | 
|       |  |                           |  |                    |            |        |       |   |     |          |  |  |           | 
|2002   |  | Cash dividends            |  |                    | 84,299,698 | (note) |       | W | 500 |          |  |  | 360%      |  |  | W | 151,739 | 
|       |  |                           |  |                    |            |        |       |   |     |          |  |  |           | 
|2003   |  | Cash dividends            |  |                    | 73,614,308 |        |       | W | 500 |          |  |  | 1,100%    |  |  | W | 404,878 | 
|       |  |                           |  |                    |            |        |       |   |     |          |  |  |           | 
|2004   |  | Cash dividends (interim)  |  |                    | 73,614,308 |        |       | W | 500 |          |  |  | 200%      |  |  | W | 73,614  | 
|       |  | Cash dividends (year-end) |  |                    | 73,614,296 |        |       | W | 500 |          |  |  | 1,860%    |  |  | W | 684,613 | 
|       |  |                           |  |                    |            |        |       |   |     |          |  |  |           | 
|       |  | Total                     |  |                    |            |        |       |   |     |          |  |  |           |  |  | W | 758,227 | 
|       |  |                           |  |                    |            |        |       |   |     |          |  |  |           | 






|       |                                                                                                                                                                                                                                                 
|------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(note) | 4,457,635 shares of the Companys common stock
    acquired through the stock exchange with KT Corporation on
    December 30, 2002 were included in the number of shares
    outstanding, as the dividend right date was December 27,
    2002.



|                       |  |      |           |   |      |   |           |      |  |   |           |  
|---------------------- |  | ---- | --------- | - | ---- | - | --------- | ---- |  | - | --------- | -
|                       |  | 2002 |           |   | 2003 |   |           | 2004 | 
|                       |  |      |           |   |      |   |           |      | 
|Dividends              |  | W    | 151,739   |   |      | W | 404,878   |      |  | W | 758,227   |  
|Net income             |  |      | 1,487,151 |   |      |   | 1,966,100 |      |  |   | 1,491,479 |  
|                       |  |      |           |   |      |   |           |      | 
|Dividends payout ratio |  |      | 10.20     | % |      |   | 20.59     | %    |  |   | 50.84     | %
|                       |  |      |           |   |      |   |           |      | 



|                            |  |      |         |   |      |   |         |      |  |   |         |  
|--------------------------- |  | ---- | ------- | - | ---- | - | ------- | ---- |  | - | ------- | -
|                            |  | 2002 |         |   | 2003 |   |         | 2004 | 
|                            |  |      |         |   |      |   |         |      | 
|Dividend per share          |  | W    | 1,800   |   |      | W | 5,500   |      |  | W | 10,300  |  
|Stock price at the year-end |  |      | 229,000 |   |      |   | 199,000 |      |  |   | 197,000 |  
|                            |  |      |         |   |      |   |         |      | 
|Dividends yield ratio       |  |      | 0.79    | % |      |   | 2.76    | %    |  |   | 5.23    | %
|                            |  |      |         |   |      |   |         |      | 



|    |                              
|--- | -----------------------------
|20. | COMMITMENTS AND CONTINGENCIES









F-47



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##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)












|    |          
|--- | ---------
|21. | INSURANCE



|                             |           |      |  |                                  |            |  |   |           |  |  |           |            | 
|---------------------------- | --------- | ---- |  | -------------------------------- | ---------- |  | - | --------- |  |  | --------- | ---------- | 
|Asset                        |           | Risk |  |                                  | Book Value |  |   | Coverage  | 
|                             |           |      |  |                                  |            |  |   |           | 
|Inventories and property and |           |      |  |                                  |            |  |   |           |  |  | US$74,815 |           
|                             | equipment |      |  | Fire and comprehensive liability |            |  | W | 6,606,428 |  |  | W         | 12,425,032 | 
|                             |           |      |  |                                  |            |  |   |           | 

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##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|    |                                       
|--- | --------------------------------------
|22. | TRANSACTIONS WITH AFFILIATED COMPANIES



|                                           |                                                           |      |  |         |      |  |  |         |  |  |  |           | 
|------------------------------------------ | --------------------------------------------------------- | ---- |  | ------- | ---- |  |  | ------- |  |  |  | --------- | 
|Description                                |                                                           | 2002 |  |         | 2003 |  |  | 2004    | 
|                                           |                                                           |      |  |         |      |  |  |         | 
|Transactions                               |                                                           |      |  |         |      |  |  |         |  |  |  |          
|SK Engineering & Construction Co., Ltd.:   |                                                           |      |  |         |      |  |  |         |  |  |  |          
|                                           | Construction (note a)                                     |      |  | 289,311 |      |  |  | 324,260 |  |  |  | 419,871   | 
|                                           | Commissions paid and other expense                        |      |  | 23,981  |      |  |  | 7,662   |  |  |  | 6,148     | 
|                                           | Commission income and other income                        |      |  | 678     |      |  |  | 776     |  |  |  | 1,348     | 
|SK Networks (formerly known as SK Global): |                                                           |      |  |         |      |  |  |         |  |  |  |          
|                                           | Purchases of property and equipment                       |      |  | 11,055  |      |  |  | 3,853   |  |  |  | 3,144     | 
|                                           | Commissions paid, leased line and other expense           |      |  | 83,234  |      |  |  | 214,101 |  |  |  | 411,053   | 
|                                           | Sales of handsets and other income                        |      |  | 383,138 |      |  |  | 491,978 |  |  |  | 1,177,249 | 
|SK Corporation:                            |                                                           |      |  |         |      |  |  |         |  |  |  |          
|                                           | Purchases of property and equipment                       |      |  | 52      |      |  |  | 3,831   |  |  |  | 4,071     | 
|                                           | Commissions paid and other expense                        |      |  | 37,249  |      |  |  | 35,612  |  |  |  | 55,921    | 
|                                           | Commission income and other income                        |      |  | 3,201   |      |  |  | 5,370   |  |  |  | 8,826     | 
|SK Life Insurance Co., Ltd.:               |                                                           |      |  |         |      |  |  |         |  |  |  |          
|                                           | Purchases of property and equipment                       |      |  |        |      |  |  | 1,570   |  |  |  | 29,959    | 
|                                           | Commissions paid and other expenses                       |      |  |        |      |  |  | 1,637   |  |  |  | 1,630     | 
|                                           | Commission income and other income                        |      |  |        |      |  |  | 761     |  |  |  | 8,833     | 
|Kyocera Corp.:                             |                                                           |      |  |         |      |  |  |         |  |  |  |          
|                                           | Purchase of raw materials and other                       |      |  | 2,807   |      |  |  | 7,143   |  |  |  | 344       | 
|                                           | Commissions paid and other expenses                       |      |  |        |      |  |  | 59      |  |  |  |          | 
|                                           | Commission income and other income                        |      |  | 66,088  |      |  |  | 14,075  |  |  |  |          | 
|SK Group Japan:                            |                                                           |      |  |         |      |  |  |         |  |  |  |          
|                                           | Purchase of raw materials for handsets and other expenses |      |  | 9,784   |      |  |  | 5,292   |  |  |  |          | 
|SK Telesys:                                |                                                           |      |  |         |      |  |  |         |  |  |  |          
|                                           | Purchases of property and equipment                       |      |  | 187,205 |      |  |  | 188,111 |  |  |  | 188,822   | 
|                                           | Commissions paid and other expenses                       |      |  | 1,519   |      |  |  | 1,717   |  |  |  | 3,102     | 
|                                           | Commission income and other income                        |      |  | 290     |      |  |  | 385     |  |  |  | 879       | 
|SKC:                                       |                                                           |      |  |         |      |  |  |         |  |  |  |          
|                                           | Purchases of inventories                                  |      |  | 17,260  |      |  |  | 204,694 |  |  |  | 899,260   | 
|                                           | Disposal of inventories and other                         |      |  | 50,341  |      |  |  | 18      |  |  |  |          | 
|                                           | Commissions paid and other expenses                       |      |  |        |      |  |  | 3,120   |  |  |  | 2,192     | 
|                                           | Commission income and other income                        |      |  |        |      |  |  | 747     |  |  |  | 584       | 
|Innoace:                                   |                                                           |      |  |         |      |  |  |         |  |  |  |          
|                                           | Purchases of property and equipment                       |      |  | 40,884  |      |  |  | 35,225  |  |  |  | 23,776    | 
|                                           | Commissions paid and other expenses                       |      |  | 9,454   |      |  |  | 314     |  |  |  | 4,337     | 
|                                           | Commission income and other income                        |      |  | 217     |      |  |  | 8,969   |  |  |  | 296       | 

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##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


|                     |                                              |      |  |         |      |  |  |         |  |  |  |         | 
|-------------------- | -------------------------------------------- | ---- |  | ------- | ---- |  |  | ------- |  |  |  | ------- | 
|Description          |                                              | 2002 |  |         | 2003 |  |  | 2004    | 
|                     |                                              |      |  |         |      |  |  |         | 
|WiderThan Co., Ltd.: |                                              |      |  |         |      |  |  |         |  |  |  |        
|                     | Purchases of property and equipment          |      |  | 9,124   |      |  |  | 22,643  |  |  |  | 3,780   | 
|                     | Commissions paid and other expenses          |      |  | 24,218  |      |  |  | 49,939  |  |  |  | 82,380  | 
|                     | Commission income and other income           |      |  |        |      |  |  | 665     |  |  |  | 2,216   | 
|SK C&C Co., Ltd.:    |                                              |      |  |         |      |  |  |         |  |  |  |        
|                     | Purchases of property and equipment          |      |  | 197,250 |      |  |  | 182,774 |  |  |  | 130,243 | 
|                     | Commissions paid and other expenses (note b) |      |  | 231,472 |      |  |  | 284,319 |  |  |  | 295,562 | 
|                     | Commission income and other income           |      |  | 6,691   |      |  |  | 8,200   |  |  |  | 7,918   | 

F-50



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##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


|                                           |                                    |      |  |        |      |  |  |         |  |  |  |         | 
|------------------------------------------ | ---------------------------------- | ---- |  | ------ | ---- |  |  | ------- |  |  |  | ------- | 
|Description                                |                                    | 2002 |  |        | 2003 |  |  | 2004    | 
|                                           |                                    |      |  |        |      |  |  |         | 
|Balances                                   |                                    |      |  |        |      |  |  |         |  |  |  |        
|SK Engineering & Construction Co., Ltd.:   |                                    |      |  |        |      |  |  |         |  |  |  |        
|                                           | Accounts receivable                |      |  | 241    |      |  |  | 92      |  |  |  | 76      | 
|                                           | Accounts payable                   |      |  | 65,773 |      |  |  | 63,442  |  |  |  | 135,213 | 
|                                           | Guarantee deposits received        |      |  | 130    |      |  |  | 90      |  |  |  | 408     | 
|SK Networks (formerly known as SK Global): |                                    |      |  |        |      |  |  |         |  |  |  |        
|                                           | Accounts receivable                |      |  | 84,970 |      |  |  | 107,782 |  |  |  | 216,412 | 
|                                           | Guarantee deposits                 |      |  | 113    |      |  |  | 113     |  |  |  | 113     | 
|                                           | Accounts payable                   |      |  | 14,792 |      |  |  | 63,641  |  |  |  | 20,047  | 
|                                           | Guarantee deposits received        |      |  | 255    |      |  |  | 719     |  |  |  | 955     | 
|SK Corporation:                            |                                    |      |  |        |      |  |  |         |  |  |  |        
|                                           | Accounts receivable                |      |  | 985    |      |  |  | 1,571   |  |  |  | 4,843   | 
|                                           | Guarantee deposits (note c)        |      |  | 79,611 |      |  |  | 103,720 |  |  |  | 103,720 | 
|                                           | Accounts payable                   |      |  | 11,654 |      |  |  | 2,911   |  |  |  | 20,165  | 
|                                           | Guarantee deposits received        |      |  | 9,885  |      |  |  | 10,194  |  |  |  | 10,194  | 
|SK Life Insurance Co., Ltd.:               |                                    |      |  |        |      |  |  |         |  |  |  |        
|                                           | Deposits for severance indemnities |      |  | 58,057 |      |  |  | 63,992  |  |  |  | 73,558  | 
|                                           | Accounts receivable                |      |  | 117    |      |  |  | 1,119   |  |  |  | 1,100   | 
|                                           | Guarantee deposits                 |      |  | 60     |      |  |  | 60      |  |  |  | 60      | 
|                                           | Guarantee deposits received        |      |  | 767    |      |  |  | 338     |  |  |  | 821     | 
|Kyocera Corp.:                             |                                    |      |  |        |      |  |  |         |  |  |  |        
|                                           | Accounts receivable                |      |  | 12,094 |      |  |  |        |  |  |  |        | 
|                                           | Accounts payable                   |      |  | 63     |      |  |  |        |  |  |  |        | 
|SK Group Japan:                            |                                    |      |  |        |      |  |  |         |  |  |  |        
|                                           | Accounts payable                   |      |  | 1,557  |      |  |  |        |  |  |  |        | 
|SK Telesys:                                |                                    |      |  |        |      |  |  |         |  |  |  |        
|                                           | Accounts receivable                |      |  | 5      |      |  |  | 50      |  |  |  | 53      | 
|                                           | Accounts payable                   |      |  | 60,834 |      |  |  | 33,904  |  |  |  | 51,954  | 
|SKC:                                       |                                    |      |  |        |      |  |  |         |  |  |  |        
|                                           | Accounts receivable                |      |  | 70,464 |      |  |  | 53,680  |  |  |  | 15,549  | 
|                                           | Guarantee deposits                 |      |  |       |      |  |  |        |  |  |  | 10,266  | 
|                                           | Accounts payable                   |      |  | 2,928  |      |  |  | 93,383  |  |  |  | 115,839 | 
|Innoace:                                   |                                    |      |  |        |      |  |  |         |  |  |  |        
|                                           | Accounts payable                   |      |  | 26,806 |      |  |  | 25,640  |  |  |  | 15,199  | 
|                                           | Guarantee deposits received        |      |  | 2,138  |      |  |  | 1,069   |  |  |  | 2,138   | 
|WiderThan Co., Ltd.                        |                                    |      |  |        |      |  |  |         |  |  |  |        
|                                           | Accounts receivable                |      |  |       |      |  |  | 30      |  |  |  | 102     | 
|                                           | Accounts payable                   |      |  | 8,296  |      |  |  | 9,762   |  |  |  | 9,847   | 

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##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


|                  |                             |      |  |         |      |  |  |        |  |  |  |        | 
|----------------- | --------------------------- | ---- |  | ------- | ---- |  |  | ------ |  |  |  | ------ | 
|Description       |                             | 2002 |  |         | 2003 |  |  | 2004   | 
|                  |                             |      |  |         |      |  |  |        | 
|SK C&C Co., Ltd.: |                             |      |  |         |      |  |  |        |  |  |  |       
|                  | Accounts receivable         |      |  | 287     |      |  |  | 245    |  |  |  | 480    | 
|                  | Accounts payable            |      |  | 116,235 |      |  |  | 72,715 |  |  |  | 77,871 | 
|                  | Guarantee deposits received |      |  | 284     |      |  |  | 346    |  |  |  | 346    | 






|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|-------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(note a) | The Company is a party to several contracts with SK Engineering
    and Construction Co., Ltd. related to the construction of its
    new corporate headquarters in Ulchiro 2-ga, Chongro-gu, Seoul.
    Construction of its new headquarters was completed at the end of
    2004. The total payment to SK Engineering &
    Construction Co., Ltd. for the demolition of existing buildings
    on the site and construction of the new building was
    W209 billion.                                                                                                                                                                                                                                                                                                                                                                                      
|        
|(note b) | The Company and certain subsidiaries are party to an agreement
    with SK C&C Co., Ltd., pursuant to which
    SK C&C Co., Ltd. provides them with information
    technology services, dated as of December 28, 1998 and
    amended as of November 1, 1999. This agreement will expire
    on December 31, 2009, but may be terminated by the Company
    and certain subsidiaries without cause on a six months notice.
    The agreement provides that the parties will agree annually on
    the specific services to be provided and the monthly fees to be
    paid by the Company and certain subsidiaries. The Company and
    certain subsidiaries also enter into agreements with
    SK C&C Co., Ltd. from time to time for specific
    information technology-related projects.                                                                
|        
|(note c) | On December 19, 2000, the Company entered into an agreement
    with SK Corporation for the sale and leaseback of the
    Companys head office with the lease period from
    December 19, 2000 to March 31, 2004. Under the lease
    agreement, in January 2001 the Company deposited refundable
    leasehold key money of W80,113 million and, as a result
    there will be no rent payment for the remaining lease period. On
    January 30, 2003, the Company prolonged the lease term to
    February 28, 2005 and deposited additional refundable
    leasehold key money of W20,027 million. In addition, in
    December 2003, the Company deposited additional refundable
    leasehold key money of W3,580 million. As a result, the
    refundable leasehold key money to SK Corporation as of
    December 31, 2004 totaled W103,720 million.



|    |                       
|--- | ----------------------
|23. | DERIVATIVE INSTRUMENTS







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##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                            |      |                               |                        |             |     |             |          |               |                 |  |     |            |  |  |   |        | 
|--------------------------- | ---- | ----------------------------- | ---------------------- | ----------- | --- | ----------- | -------- | ------------- | --------------- |  | --- | ---------- |  |  | - | ------ | 
|                            |      |                               |                        |             |     |             |          | Fair Value    |                
|                            |      |                               |                        |             |     |             |          |               |                
|                            |      |                               |                        |             |     |             |          | Designated    |                 |  |    
|                            |      |                               |                        |             |     | Duration of |          | as Cash       |                 |  | Not |           
|Type                        |      | Hedged Item                   |                        | Face Amount |     |             | Contract |               | Flow Hedge      |  |     | Designated | 
|                            |      |                               |                        |             |     |             |          |               |                 |  |     |            | 
|Fix-to-fixed cross currency |      |                               |                        |             |     |             |          |               |                 |  |     |            |  |  |   |       
|                            | swap |                               | Unguaranteed US dollar |             | US$ | 300,000     |          |               | March 23, 2004- |  | W   | 80,953     |  |  | W |       | 
|                            |      | denominated bonds             |                        |             |     |             |          | April 1, 2011 |                 |  |     |            |  |  |   |       
|Fix-to-fixed cross currency |      |                               |                        |             |     |             |          |               |                 |  |     |            |  |  |   |       
|                            | swap |                               | Unguaranteed US dollar |             | US$ | 100,000     |          |               | May 27, 2004-   |  |     |           |  |  |   | 15,790 | 
|                            |      | denominated convertible bonds |                        |             |     |             |          | May 27, 2009  |                 |  |     |            |  |  |   |       





|    |                             
|--- | ----------------------------
|24. | MERGER WITH SK IMT CO., LTD.





|    |                              
|--- | -----------------------------
|25. | MERGER WITH CYWORLD CO., LTD.



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SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                           |                                            |              |   |        |               |  |   |        |  
|-------------------------- | ------------------------------------------ | ------------ | - | ------ | ------------- |  | - | ------ | -
|                           |                                            | Aug. 1, 2003 |   |        | Dec. 31, 2002 | 
|                           |                                            |              |   |        |               | 
|(Condensed balance sheets) |                                            |              |   |        |               |  |   |       
|                           | Current assets                             |              | W | 1,200  |               |  | W | 129    |  
|                           | Non-current assets                         |              |   | 615    |               |  |   | 1,175  |  
|                           |                                            |              |   |        |               | 
|                           | Total assets                               |              | W | 1,815  |               |  | W | 1,304  |  
|                           |                                            |              |   |        |               | 
|                           | Current liabilities                        |              | W | 1,586  |               |  | W | 850    |  
|                           | Long-term liabilities                      |              |   | 77     |               |  |   | 432    |  
|                           |                                            |              |   |        |               | 
|                           | Total liabilities                          |              |   | 1,663  |               |  |   | 1,282  |  
|                           |                                            |              |   |        |               | 
|                           | Common stock                               |              |   | 1,160  |               |  |   | 1,160  |  
|                           | Capital surplus                            |              |   | 4,208  |               |  |   | 4,208  |  
|                           | Deficit                                    |              |   | (5,216 | )             |  |   | (5,346 | )
|                           |                                            |              |   |        |               | 
|                           | Total equity                               |              |   | 152    |               |  |   | 22     |  
|                           |                                            |              |   |        |               | 
|                           | Total liabilities and stockholders equity |              | W | 1,815  |               |  | W | 1,304  |  
|                           |                                            |              |   |        |               | 

|                                     |                    |                 |   |        |               |  |   |        |  
|------------------------------------ | ------------------ | --------------- | - | ------ | ------------- |  | - | ------ | -
|                                     |                    | Period from     |   |        |              
|                                     |                    | Jan. 1, 2003 to |   |        | Year ended    | 
|                                     |                    | Jul. 31, 2003   |   |        | Dec. 31, 2002 | 
|                                     |                    |                 |   |        |               | 
|(Condensed statements of operations) |                    |                 |   |        |               |  |   |       
|                                     | Operating revenue  |                 | W | 1,930  |               |  | W | 1,823  |  
|                                     | Operating expenses |                 |   | (2,244 | )             |  |   | (2,694 | )
|                                     |                    |                 |   |        |               | 
|                                     | Operating loss     |                 |   | (314   | )             |  |   | (871   | )
|                                     | Other income       |                 |   | 606    |               |  |   | 37     |  
|                                     | Other expenses     |                 |   | (163   | )             |  |   | (721   | )
|                                     |                    |                 |   |        |               | 
|                                     | Net income (loss)  |                 | W | 129    |               |  | W | (1,555 | )
|                                     |                    |                 |   |        |               | 



|                                |                                           |  |   |       |  |   |       |       | 
|------------------------------- | ----------------------------------------- |  | - | ----- |  | - | ----- | ----- | 
|Fair value of net assets merged |                                           |  |   |       |  | W | 152   |      
|Merger cost                     |                                           |  |   |       |  |   |       |      
|                                | Fair value of common stock issued         |  | W | 8,429 |  |   |       |       | 
|                                | Direct costs related to the merger (note) |  |   | 1,097 |  |   |       | 9,526 | 
|                                |                                           |  |   |       |  |  
|Goodwill                        |                                           |  |   |       |  | W | 9,374 |      
|                                |                                           |  |   |       |  |  






|       |                                                                                                                                                                                   
|------ | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(note) | The direct costs related to the merger are the liquidation
    income tax of W1,067 million paid for Cyworld Co., Ltd.,
    and service fees of W30 million related to the merger.



F-54



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##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|    |                                                       
|--- | ------------------------------------------------------
|26. | ACQUISITION OF AND MERGER WITH SHINSEGI TELECOMM, INC.







|                                                                     |  |                |            |  
|-------------------------------------------------------------------- |  | -------------- | ---------- | -
|                                                                     |  | In Millions of |           
|                                                                     |  | Korean Won     |           
|                                                                     |  |                |           
|Fair value of assets acquired                                        |  | W              | 1,183,633  |  
|Goodwill                                                             |  |                | 2,560,690  |  
|Elimination of investment in unconsolidated affiliate                |  |                | (1,067,180 | )
|Assumed liabilities                                                  |  |                | (1,018,710 | )
|                                                                     |  |                |           
|Acquisition cost after adding incidental costs of
    W1,085 million |  | W              | 1,658,433  |  
|                                                                     |  |                |           







|    |                                                                            
|--- | ---------------------------------------------------------------------------
|27. | LOSS ON IMPAIRMENT OF IDLE NETWORK EQUIPMENT OF SHINSEGI
    TELECOMM, INC.



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##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|    |                                
|--- | -------------------------------
|28. | NETWORK INTERCONNECTION CHARGES







|    |                 
|--- | ----------------
|29. | SUBSEQUENT EVENT



|   |                             
|-- | ----------------------------
|a. | Acquisition of WiBro License





|   |                                                                                 
|-- | --------------------------------------------------------------------------------
|b. | Agreement for Establishing SK-EarthLink, a Joint Venture
    Company in the U.S.





|   |                                        
|-- | ---------------------------------------
|c. | Issuance of unguaranteed domestic bonds





|   |                                                                                
|-- | -------------------------------------------------------------------------------
|d. | Resolution to dispose of the Companys investments in SK
    Teletech Co., Ltd.



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##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |                                     
|-- | ------------------------------------
|e. | Fine for Providing Handset subsidies





|    |                                                                             
|--- | ----------------------------------------------------------------------------
|30. | RECONCILIATION TO UNITED STATES GENERALLY ACCEPTED ACCOUNTING
    PRINCIPLES





|   |                                   
|-- | ----------------------------------
|a. | Deferred Income Taxes (see Note 2)







|   |                              
|-- | -----------------------------
|b. | Deferred Charges (see Note 2)





|   |       
|-- | ------
|c. | Leases





|   |                                                                  
|-- | -----------------------------------------------------------------
|d. | Marketable Securities and Investments Securities (see
    Note 2)



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##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






| |   |                                                                                                                                                                                                                                                                                                    
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Debt securities that the Company has the positive intent and
    ability to hold to maturity are classified as held-to-maturity
    securities and reported at amortized cost.                                                                                                                     
|
| |  | Debt and equity securities that are bought and held principally
    for the purpose of selling them in the near term are classified
    as trading securities and reported at fair value, with
    unrealized gains and losses included in income.                                                 
|
| |  | Debt and equity securities not classified as either
    held-to-maturity securities or trading securities are classified
    as available-for-sale securities and reported at fair value,
    with unrealized gains and losses excluded from income and
    reported in other comprehensive income.





|                      |                   |                  |   |         |            |  |       |            |  |  |            |       |  |  |   |         | 
|--------------------- | ----------------- | ---------------- | - | ------- | ---------- |  | ----- | ---------- |  |  | ---------- | ----- |  |  | - | ------- | 
|                      |                   |                  |   | Gross   |            |  | Gross |            |  | 
|                      |                   | Cost             |   |         | Unrealized |  |       | Unrealized |  |  |           
|                      |                   | (Amortized Cost) |   |         | Gains      |  |       | Losses     |  |  | Fair Value |      
|                      |                   |                  |   |         |            |  |       |            |  |  |            |      
|At December 31, 2002: |                   |                  |   |         |            |  |       |            |  |  |            |       |  |  |   |        
|                      | Debt securities   |                  | W | 754,219 |            |  | W     |           |  |  | W          |      |  |  | W | 754,219 | 
|                      |                   |                  |   |         |            |  |       |            |  |  |            |      
|At December 31, 2003: |                   |                  |   |         |            |  |       |            |  |  |            |       |  |  |   |        
|                      | Debt securities   |                  | W | 895,401 |            |  | W     |           |  |  | W          | 2,184 |  |  | W | 893,217 | 
|                      |                   |                  |   |         |            |  |       |            |  |  |            |      
|At December 31, 2004: |                   |                  |   |         |            |  |       |            |  |  |            |       |  |  |   |        
|                      | Equity securities |                  | W | 450     |            |  | W     |           |  |  | W          | 82    |  |  | W | 368     | 
|                      | Debt securities   |                  |   | 652,372 |            |  |       | 2,039      |  |  |            |      |  |  |   | 654,411 | 
|                      |                   |                  |   |         |            |  |       |            |  |  |            |      
|                      | Total             |                  | W | 652,822 |            |  | W     | 2,039      |  |  | W          | 82    |  |  | W | 654,779 | 
|                      |                   |                  |   |         |            |  |       |            |  |  |            |      

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##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                      |                   |                  |           |         |            |   |         |            |  |   |            |       |  |            |         |         |  |   |         |         | 
|--------------------- | ----------------- | ---------------- | --------- | ------- | ---------- | - | ------- | ---------- |  | - | ---------- | ----- |  | ---------- | ------- | ------- |  | - | ------- | ------- | 
|                      |                   |                  |           | Gross   |            |   | Gross   |            |  |   |            |      
|                      |                   | Cost             |           |         | Unrealized |   |         | Unrealized |  |   | Impairment |       |  |           
|                      |                   | (Amortized Cost) |           |         | Gains      |   |         | Losses     |  |   | Losses     |       |  | Fair Value |        
|                      |                   |                  |           |         |            |   |         |            |  |   |            |       |  |            |        
|At December 31, 2002: |                   |                  |           |         |            |   |         |            |  |   |            |       |  |            |         |         |  |   |         |        
|                      | Equity securities |                  | W         | 938,975 |            |   | W       | 1,522      |  |   | W          | 3,852 |  |            | W       | 146,284 |  |   | W       | 790,361 | 
|                      | Debt securities   |                  |           | 62,500  |            |   |         |           |  |   |            |      |  |            |         |        |  |   |         | 62,500  | 
|                      |                   |                  |           |         |            |   |         |            |  |   |            |       |  |            |        
|                      |                   | W                | 1,001,475 |         |            | W | 1,522   |            |  | W | 3,852      |       |  | W          | 146,284 |         |  | W | 852,861 |        
|                      |                   |                  |           |         |            |   |         |            |  |   |            |       |  |            |        
|At December 31, 2003: |                   |                  |           |         |            |   |         |            |  |   |            |       |  |            |         |         |  |   |         |        
|                      | Equity securities |                  | W         | 427,472 |            |   | W       | 73,290     |  |   | W          | 6,608 |  |            | W       | 55,469  |  |   | W       | 438,685 | 
|                      | Debt securities   |                  |           | 64,315  |            |   |         |           |  |   |            |      |  |            |         |        |  |   |         | 64,315  | 
|                      |                   |                  |           |         |            |   |         |            |  |   |            |       |  |            |        
|                      |                   | W                | 491,787   |         |            | W | 73,290  |            |  | W | 6,608      |       |  | W          | 55,469  |         |  | W | 503,000 |        
|                      |                   |                  |           |         |            |   |         |            |  |   |            |       |  |            |        
|At December 31, 2004: |                   |                  |           |         |            |   |         |            |  |   |            |       |  |            |         |         |  |   |         |        
|                      | Equity securities |                  | W         | 468,666 |            |   | W       | 137,621    |  |   | W          |      |  |            | W       | 63,902  |  |   | W       | 542,385 | 
|                      | Debt securities   |                  |           | 65,957  |            |   |         |           |  |   |            |      |  |            |         | 10,655  |  |   |         | 55,302  | 
|                      |                   |                  |           |         |            |   |         |            |  |   |            |       |  |            |        
|                      |                   | W                | 534,623   |         |            | W | 137,621 |            |  | W |           |       |  | W          | 74,557  |         |  | W | 597,687 |        
|                      |                   |                  |           |         |            |   |         |            |  |   |            |       |  |            |        







|   |                                                   
|-- | --------------------------------------------------
|e. | Impairment of Investment Securities and Recoveries





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##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






|   |                     
|-- | --------------------
|f. | Comprehensive Income





|   |                                            
|-- | -------------------------------------------
|g. | Business Combinations and Intangible Assets











|   |                                                                       
|-- | ----------------------------------------------------------------------
|h. | Determination of Acquisition Cost of Equity Interest in
    Subsidiary



F-60



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##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |                                             
|-- | --------------------------------------------
|i. | Additional Equity Investment in Subsidiaries





|   |                                                                               
|-- | ------------------------------------------------------------------------------
|j. | Capitalization of Foreign Exchange Losses (or Gains) and
    Interest Expenses







|   |                              
|-- | -----------------------------
|k. | Nonrefundable Activation Fees







|   |                                               
|-- | ----------------------------------------------
|l. | Gain or Loss on Disposal of Subsidiarys Stock





|   |                                        
|-- | ---------------------------------------
|m. | Employee Stock Option Compensation Plan





F-61



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##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |                                              
|-- | ---------------------------------------------
|n. | Loans Receivable for Stock Issued to Employee





|   |                               
|-- | ------------------------------
|o. | Discount on Leasehold Deposits





|   |                                  
|-- | ---------------------------------
|p. | Asset Securitization Transactions





| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                    
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | The transferred assets have been isolated from the transferor
    and put beyond the reach of the transferor, or any consolidated
    affiliated of the transferor, and their creditors even in the
    event of bankruptcy or receivership of the transferor or any
    consolidated affiliate.                                                                                                                                   
|
| |  | The transferee is a qualifying special-purpose entity
    (QSPE) and each holder of its beneficial interests
    (including both debt and equity securities) has the right to
    pledge, or the right to exchange its interests. If the issuing
    vehicle is not a QSPE, then sale accounting is only permitted if
    the issuing vehicle itself has the right to pledge or the right
    to exchange the transferred assets.
|
| |  | The transferor does not effectively maintain control over the
    transferred assets either through;                                                                                                                                                                                                                                                                                                                               



| |                                                                                                                                                                                             
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (a) an agreement that calls for the transferor to
    repurchase the transferred assets (or to buy back securities of
    a QSPE held by third-party investors) before their
    maturity or
|
| | (b) the ability to unilaterally cause the SPE or QSPE to
    return specific assets; other than through a cleanup call.                                                                     







|   |                                    
|-- | -----------------------------------
|q. | Considerations for conversion right



F-62



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##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |              
|-- | -------------
|r. | Currency Swap





|   |                             
|-- | ----------------------------
|s. | Foreign Currency Translation





|   |                                                                             
|-- | ----------------------------------------------------------------------------
|t. | Presentation of Minority Interest as a Component of
    Shareholders Equity





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##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                                     |                                                                                                |                         |            |          |      |   |            |         |   |   |            |         |  
|---------------------------------------------------- | ---------------------------------------------------------------------------------------------- | ----------------------- | ---------- | -------- | ---- | - | ---------- | ------- | - | - | ---------- | ------- | -
|                                                     |                                                                                                | Year Ended December 31, |           
|                                                     |                                                                                                |                         |           
|                                                     |                                                                                                | 2002                    |            |          | 2003 |   |            | 2004    |  
|                                                     |                                                                                                |                         |            |          |      |   |            |         |  
|Net income based on Korean GAAP                      |                                                                                                | W                       | 1,487,151  |          |      | W | 1,966,100  |         |   | W | 1,491,479  |        
|Adjustments:                                         |                                                                                                |                         |            |          |      |   |            |         |   |   |            |        
|                                                     | Deferred income tax adjustments due to difference in accounting
    principles                 |                         |            | (8,481   | )    |   |            | (7,342  | ) |   |            | (3,827  | )
|                                                     | Tax effect of the reconciling items                                                            |                         |            | 121,976  |      |   |            | (15,036 | ) |   |            | 22,515  |  
|                                                     | Deferred charges                                                                               |                         |            | 1,318    |      |   |            | 2,660   |   |   |            | (60     | )
|                                                     | Capital leases                                                                                 |                         |            | 454      |      |   |            | (906    | ) |   |            | 1,534   |  
|                                                     | Intangible assets                                                                              |                         |            | (23,507  | )    |   |            | (22,303 | ) |   |            | (18,546 | )
|                                                     | Reversal of amortization of goodwill                                                           |                         |            | 138,041  |      |   |            | 135,557 |   |   |            | 136,694 |  
|                                                     | Capitalization of foreign exchange losses and interest expenses
    related to tangible assets |                         |            | 6,213    |      |   |            | 21,617  |   |   |            | 24,454  |  
|                                                     | Capitalization of interest expenses related to purchases of
    intangible assets              |                         |            | (69,372  | )    |   |            | 427     |   |   |            | 5,285   |  
|                                                     | Nonrefundable activation fees                                                                  |                         |            | (104,263 | )    |   |            | (46,962 | ) |   |            | (36,048 | )
|                                                     | Loss (gain) on disposal of subsidiary shares                                                   |                         |            |         |      |   |            | 58      |   |   |            |        |  
|                                                     | Stock option compensation plan                                                                 |                         |            | (3,367   | )    |   |            | (3,114  | ) |   |            | (1,938  | )
|                                                     | Loss on sale of accounts receivable and other in asset
    securitization                      |                         |            | 7,039    |      |   |            | 7,437   |   |   |            | (14,476 | )
|                                                     | Loss on impairment of investment securities                                                    |                         |            | (252,031 | )    |   |            | 24,727  |   |   |            | (8,434  | )
|                                                     | Loss on valuation of currency swap                                                             |                         |            |         |      |   |            |        |   |   |            | (49,452 | )
|                                                     | Discount on leasehold deposits                                                                 |                         |            | (45      | )    |   |            | (286    | ) |   |            | 422     |  
|                                                     | Considerations for conversion right                                                            |                         |            |         |      |   |            |        |   |   |            | 1,016   |  
|                                                     | Foreign currency translation                                                                   |                         |            |         |      |   |            |        |   |   |            | 2,458   |  
|                                                     | Recovery of impaired investment securities                                                     |                         |            |         |      |   |            | 115     |   |   |            |        |  
|                                                     |                                                                                                |                         |            |          |      |   |            |         |  
|Net income based on U.S. GAAP                        |                                                                                                | W                       | 1,301,126  |          |      | W | 2,062,749  |         |   | W | 1,553,076  |        
|                                                     |                                                                                                |                         |            |          |      |   |            |         |  
|Weighted average number of common shares outstanding |                                                                                                |                         | 84,270,450 |          |      |   | 75,078,219 |         |   |   | 73,614,297 |        
|                                                     |                                                                                                |                         |            |          |      |   |            |         |  
|Earnings per share based on U.S.GAAP:                |                                                                                                |                         |            |          |      |   |            |         |   |   |            |        
|                                                     | Basic earnings per share                                                                       |                         | W          | 15,440   |      |   | W          | 27,475  |   |   | W          | 21,097  |  
|                                                     |                                                                                                |                         |            |          |      |   |            |         |  
|                                                     | Diluted earnings per share                                                                     |                         | W          | 15,439   |      |   | W          | 27,475  |   |   | W          | 20,921  |  
|                                                     |                                                                                                |                         |            |          |      |   |            |         |  

F-64



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##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


|                                          |                                                                                                |              |           |           |      |   |           |           |   |   |           |           |  
|----------------------------------------- | ---------------------------------------------------------------------------------------------- | ------------ | --------- | --------- | ---- | - | --------- | --------- | - | - | --------- | --------- | -
|                                          |                                                                                                | December 31, |          
|                                          |                                                                                                |              |          
|                                          |                                                                                                | 2002         |           |           | 2003 |   |           | 2004      |  
|                                          |                                                                                                |              |           |           |      |   |           |           |  
|Shareholders equity based on Korean GAAP |                                                                                                | W            | 6,231,900 |           |      | W | 6,093,847 |           |   | W | 7,205,744 |          
|Adjustments:                              |                                                                                                |              |           |           |      |   |           |           |   |   |           |          
|                                          | Deferred income tax adjustments due to difference in accounting
    principles                 |              |           | (18,997   | )    |   |           | (45,317   | ) |   |           | (70,067   | )
|                                          | Tax effect of the reconciling items                                                            |              |           | 151,554   |      |   |           | 136,517   |   |   |           | 159,032   |  
|                                          | Deferred charges                                                                               |              |           | (2,600    | )    |   |           | 60        |   |   |           |          |  
|                                          | Capital leases                                                                                 |              |           | 1,144     |      |   |           | 239       |   |   |           | 1,773     |  
|                                          | Intangible assets                                                                              |              |           | 1,033,558 |      |   |           | 1,019,917 |   |   |           | 1,009,557 |  
|                                          | Reversal of amortization of goodwill                                                           |              |           | 138,041   |      |   |           | 273,598   |   |   |           | 410,292   |  
|                                          | Capitalization of foreign exchange losses and interest expenses
    related to tangible assets |              |           | (1,775    | )    |   |           | 19,842    |   |   |           | 44,294    |  
|                                          | Capitalization of interest expenses related to purchase of
    intangible assets               |              |           | (69,372   | )    |   |           | (68,945   | ) |   |           | (63,660   | )
|                                          | Nonrefundable activation fees                                                                  |              |           | (192,212  | )    |   |           | (239,174  | ) |   |           | (275,222  | )
|                                          | Loans receivable for stock issued to employees investor
    association                       |              |           | (45,906   | )    |   |           | (33,788   | ) |   |           | (22,546   | )
|                                          | Minority interest in equity of consolidated affiliates                                         |              |           | (725,507  | )    |   |           | (155,985  | ) |   |           | (98,198   | )
|                                          | Loss on sale of accounts receivable and other in asset
    securitization                      |              |           | 7,039     |      |   |           | 14,476    |   |   |           |          |  
|                                          | Loss on impairment of investment securities                                                    |              |           | (150,243  | )    |   |           |          |   |   |           |          |  
|                                          | Discount on leasehold deposits                                                                 |              |           | (367      | )    |   |           | (653      | ) |   |           | (231      | )
|                                          | Considerations for conversion right                                                            |              |           |          |      |   |           |          |   |   |           | (66,263   | )
|                                          | Foreign currency translation                                                                   |              |           |          |      |   |           |          |   |   |           | 2,458     |  
|                                          | Recovery of impaired investment securities                                                     |              |           | (81       | )    |   |           | 34        |   |   |           | 34        |  
|                                          |                                                                                                |              |           |           |      |   |           |           |  
|Shareholders equity based on U.S. GAAP   |                                                                                                | W            | 6,356,176 |           |      | W | 7,014,668 |           |   | W | 8,236,997 |          
|                                          |                                                                                                |              |           |           |      |   |           |           |  

F-65



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SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                               |                                                                                                 |                         |           |           |      |   |           |            |   |   |           |           |  
|------------------------------ | ----------------------------------------------------------------------------------------------- | ----------------------- | --------- | --------- | ---- | - | --------- | ---------- | - | - | --------- | --------- | -
|                               |                                                                                                 | Year Ended December 31, |          
|                               |                                                                                                 |                         |          
|                               |                                                                                                 | 2002                    |           |           | 2003 |   |           | 2004       |  
|                               |                                                                                                 |                         |           |           |      |   |           |            |  
|Balance, beginning of the year |                                                                                                 | W                       | 5,820,051 |           |      | W | 6,356,176 |            |   | W | 7,014,668 |          
|                               | Net income for the year                                                                         |                         |           | 1,301,126 |      |   |           | 2,062,749  |   |   |           | 1,553,076 |  
|                               | Dividends                                                                                       |                         |           | (57,265   | )    |   |           | (151,739   | ) |   |           | (478,492  | )
|                               | Issuance of common stock                                                                        |                         |           |          |      |   |           | 31,053     |   |   |           |          |  
|                               | Unrealized gains on valuation of securities, net of tax                                         |                         |           | 51,644    |      |   |           | 50,033     |   |   |           | 55,156    |  
|                               | Equity in capital surplus, retained earnings and capital
    adjustments of affiliates (note a) |                         |           | (12,789   | )    |   |           | 50,166     |   |   |           | 89,448    |  
|                               | Retirement of treasury stock                                                                    |                         |           |          |      |   |           | (20,598    | ) |   |           |          |  
|                               | Treasury stock transactions                                                                     |                         |           | (779,290  | )    |   |           | (1,379,337 | ) |   |           | (2        | )
|                               | Foreign-based operations translation adjustments                                               |                         |           | 2,809     |      |   |           | (356       | ) |   |           | (11,128   | )
|                               | Stock compensation plan                                                                         |                         |           | 4,859     |      |   |           | 4,403      |   |   |           | 3,030     |  
|                               | Decrease in loans receivable for stock issued to employees
    investor association            |                         |           | 25,031    |      |   |           | 12,118     |   |   |           | 11,241    |  
|                               |                                                                                                 |                         |           |           |      |   |           |            |  
|Balance, end of the year       |                                                                                                 | W                       | 6,356,176 |           |      | W | 7,014,668 |            |   | W | 8,236,997 |          
|                               |                                                                                                 |                         |           |           |      |   |           |            |  






|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|-------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(note a) | This line item consists of the adjustments to the carrying
    amount of equity method investments based on the Companys
    proportionate pickup in affiliates using the equity method of
    accounting, which are directly adjusted to stockholders
    equity of affiliates, such as unrealized gains or losses on
    valuation of available-for-sale securities, foreign-based
    operations translation adjustments in affiliates and stock
    transactions by affiliates.

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##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                |                                       |                                                                                                 |            |            |           |   |            |            |           |   |            |            |           |  
|------------------------------- | ------------------------------------- | ----------------------------------------------------------------------------------------------- | ---------- | ---------- | --------- | - | ---------- | ---------- | --------- | - | ---------- | ---------- | --------- | -
|                                |                                       | December 31,                                                                                    |           
|                                |                                       |                                                                                                 |           
|                                |                                       | 2002                                                                                            |            |            | 2003      |   |            | 2004       |          
|                                |                                       |                                                                                                 |            |            |           |   |            |            |          
|Current assets:                 |                                       |                                                                                                 |            |            |           |   |            |            |           |   |            |           
|                                | As reported                           |                                                                                                 | W          | 4,113,724  |           |   | W          | 4,069,525  |           |   | W          | 4,390,693  |          
|                                | U.S. GAAP adjustments:                |                                                                                                 |            |            |           |   |            |            |           |   |            |            |          
|                                |                                       |  loans receivable for stock issued to employees investor
    association                       |            |            |          |   |            |            |          |   |            |            | (4,123    | )
|                                |                                       |  deferred tax adjustments due to difference in accounting
    principles                       |            |            | 60,619    |   |            |            | 73,500    |   |            |            | 51,344    |  
|                                |                                       |  tax effect of the reconciling items                                                           |            |            | (9,927    | ) |            |            | (8,297    | ) |            |            | 25,234    |  
|                                |                                       |  discount on leasehold deposits                                                                |            |            | 4,843     |   |            |            | 5,777     |   |            |            | 1,119     |  
|                                |                                       |  asset securitization transactions                                                             |            |            | 582,742   |   |            |            | 478,298   |   |            |            |          |  
|                                |                                       |                                                                                                 |            |            |           |   |            |            |          
|                                | Current assets based on U.S. GAAP     |                                                                                                 |            | 4,752,001  |           |   |            | 4,618,823  |           |   |            | 4,464,267  |          
|                                |                                       |                                                                                                 |            |            |           |   |            |            |          
|Non-current assets:             |                                       |                                                                                                 |            |            |           |   |            |            |           |   |            |           
|                                | As reported                           |                                                                                                 |            | 10,114,986 |           |   |            | 9,748,692  |           |   |            | 9,892,665  |          
|                                | U.S. GAAP adjustments:                |                                                                                                 |            |            |           |   |            |            |           |   |            |            |          
|                                |                                       |  loans receivable for stock issued to employees
    investor association                      |            |            | (45,906   | ) |            |            | (33,788   | ) |            |            | (18,423   | )
|                                |                                       |  intangible assets                                                                             |            |            | 1,034,972 |   |            |            | 1,015,801 |   |            |            | 1,004,774 |  
|                                |                                       |  cancellation of amortization of goodwill                                                      |            |            | 138,041   |   |            |            | 273,598   |   |            |            | 410,292   |  
|                                |                                       |  discount on leasehold deposits                                                                |            |            | (5,210    | ) |            |            | (6,430    | ) |            |            | (1,349    | )
|                                |                                       |  loss on sale of accounts receivable and other in asset
    securitization                     |            |            | (68,267   | ) |            |            |          |   |            |            |          |  
|                                |                                       |  recovery of impaired investment securities                                                    |            |            | (81       | ) |            |            | 34        |   |            |            | 34        |  
|                                |                                       |  loss on impairment of investment securities                                                   |            |            | (150,243  | ) |            |            |          |   |            |            |          |  
|                                |                                       |  nonrefundable activation fees                                                                 |            |            | 9,129     |   |            |            | 9,129     |   |            |            | 9,129     |  
|                                |                                       |  capital lease                                                                                 |            |            | 5,820     |   |            |            | 3,301     |   |            |            | 1,773     |  
|                                |                                       |  capitalization of foreign exchange losses and interest
    expense related to tangible assets |            |            | (1,775    | ) |            |            | 19,842    |   |            |            | 44,294    |  
|                                |                                       |  capitalization of interest expenses related to purchase
    of intangible assets              |            |            | (69,372   | ) |            |            | (68,945   | ) |            |            | (63,660   | )
|                                |                                       |  deferred charges                                                                              |            |            | 6,564     |   |            |            | 6,154     |   |            |            | 12,969    |  
|                                |                                       |                                                                                                 |            |            |           |   |            |            |          
|                                | Non-current assets based on U.S. GAAP |                                                                                                 |            | 10,968,658 |           |   |            | 10,967,388 |           |   |            | 11,292,498 |          
|                                |                                       |                                                                                                 |            |            |           |   |            |            |          
|Total assets based on U.S. GAAP |                                       | W                                                                                               | 15,720,659 |            |           | W | 15,586,211 |            |           | W | 15,756,765 |           
|                                |                                       |                                                                                                 |            |            |           |   |            |            |          

F-67



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##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


|                                            |                                          |                                                                           |           |           |          |   |           |           |          |   |           |           |          |  
|------------------------------------------- | ---------------------------------------- | ------------------------------------------------------------------------- | --------- | --------- | -------- | - | --------- | --------- | -------- | - | --------- | --------- | -------- | -
|                                            |                                          | December, 31                                                              |          
|                                            |                                          |                                                                           |          
|                                            |                                          | 2002                                                                      |           |           | 2003     |   |           | 2004      |         
|                                            |                                          |                                                                           |           |           |          |   |           |           |         
|Current liabilities:                        |                                          |                                                                           |           |           |          |   |           |           |          |   |           |          
|                                            | As reported                              |                                                                           | W         | 4,303,386 |          |   | W         | 4,530,910 |          |   | W         | 3,066,893 |         
|                                            | U.S. GAAP adjustments:                   |                                                                           |           |           |          |   |           |           |          |   |           |           |         
|                                            |                                          |  deferred charges                                                        |           |           | 222      |   |           |           | 31       |   |           |           |         |  
|                                            |                                          |  nonrefundable activation fees                                           |           |           | 46,723   |   |           |           | 68,665   |   |           |           | 86,082   |  
|                                            |                                          |  asset securitization transactions                                       |           |           | 507,436  |   |           |           | 463,822  |   |           |           |         |  
|                                            |                                          |  acquisition cost of equity interest in subsidiary                       |           |           | 2,449    |   |           |           | 886      |   |           |           |         |  
|                                            |                                          |  foreign currency translation                                            |           |           |         |   |           |           |         |   |           |           | (26      | )
|                                            |                                          |                                                                           |           |           |          |   |           |           |         
|                                            | Current liabilities based on U.S. GAAP   |                                                                           |           | 4,860,216 |          |   |           | 5,064,314 |          |   |           | 3,152,949 |         
|                                            |                                          |                                                                           |           |           |          |   |           |           |         
|Long-term liabilities:                      |                                          |                                                                           |           |           |          |   |           |           |          |   |           |          
|                                            | As reported                              |                                                                           |           | 3,693,424 |          |   |           | 3,193,460 |          |   |           | 4,010,721 |         
|                                            | U.S. GAAP adjustments:                   |                                                                           |           |           |          |   |           |           |          |   |           |           |         
|                                            |                                          |  deferred charges                                                        |           |           | 8,942    |   |           |           | 5,844    |   |           |           | 12,969   |  
|                                            |                                          |  Intangible assets                                                       |           |           | 3,748    |   |           |           |         |   |           |           |         |  
|                                            |                                          |  nonrefundable activation fees                                           |           |           | 154,618  |   |           |           | 179,638  |   |           |           | 198,269  |  
|                                            |                                          |  capital leases                                                          |           |           | 4,676    |   |           |           | 3,062    |   |           |           |         |  
|                                            |                                          |  deferred tax adjustments due to difference in accounting
    principles |           |           | 79,616   |   |           |           | 118,837  |   |           |           | 123,911  |  
|                                            |                                          |  tax effect of the reconciling items                                     |           |           | (166,264 | ) |           |           | (149,597 | ) |           |           | (141,080 | )
|                                            |                                          |  considerations for conversion right                                     |           |           |         |   |           |           |         |   |           |           | 66,263   |  
|                                            |                                          |  foreign currency translation                                            |           |           |         |   |           |           |         |   |           |           | (2,432   | )
|                                            |                                          |                                                                           |           |           |          |   |           |           |         
|                                            | Long-term liabilities based on U.S. GAAP |                                                                           |           | 3,778,760 |          |   |           | 3,351,244 |          |   |           | 4,268,621 |         
|                                            |                                          |                                                                           |           |           |          |   |           |           |         
|Total liabilities based on U.S. GAAP        |                                          | W                                                                         | 8,638,976 |           |          | W | 8,415,558 |           |          | W | 7,421,570 |          
|                                            |                                          |                                                                           |           |           |          |   |           |           |         
|Minority interests:                         |                                          |                                                                           |           |           |          |   |           |           |          |   |           |          
|                                            | As reported                              |                                                                           | W         | 725,507   |          |   | W         | 155,985   |          |   | W         | 98,198    |         
|                                            | U.S. GAAP adjustments:                   |                                                                           |           |          |          |   |           |          |          |   |           |          |         
|                                            |                                          |                                                                           |           |           |          |   |           |           |         
|Total minority interests based on U.S. GAAP |                                          | W                                                                         | 725,507   |           |          | W | 155,985   |           |          | W | 98,198    |          
|                                            |                                          |                                                                           |           |           |          |   |           |           |         



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##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                                          |                                   |      |            |          |      |   |            |         |   |   |            |          |  
|--------------------------------------------------------- | --------------------------------- | ---- | ---------- | -------- | ---- | - | ---------- | ------- | - | - | ---------- | -------- | -
|                                                          |                                   | 2002 |            |          | 2003 |   |            | 2004    |  
|                                                          |                                   |      |            |          |      |   |            |         |  
|Cash flows from operating activities based on Korean GAAP |                                   | W    | 4,267,815  |          |      | W | 3,328,770  |         |   | W | 2,516,052  |         
|Adjustments:                                              |                                   |      |            |          |      |   |            |         |   |   |            |         
|                                                          | Asset securitization transactions |      |            | (558,921 | )    |   |            | (47,496 | ) |   |            | 469,883  |  
|                                                          |                                   |      |            |          |      |   |            |         |  
|Cash flows from operating activities based on US GAAP     |                                   | W    | 3,708,894  |          |      | W | 3,281,274  |         |   | W | 2,985,935  |         
|                                                          |                                   |      |            |          |      |   |            |         |  
|Cash flows from investing activities based on Korean GAAP |                                   | W    | (3,063,435 | )        |      | W | (1,414,432 | )       |   | W | (1,469,537 | )       
|Adjustments:                                              |                                   |      |            |          |      |   |            |         |   |   |            |         
|                                                          | Asset securitization transactions |      |            | 68,267   |      |   |            | (8,080  | ) |   |            | 76,347   |  
|                                                          |                                   |      |            |          |      |   |            |         |  
|Cash flows from investing activities based on US GAAP     |                                   | W    | (2,995,168 | )        |      | W | (1,422,512 | )       |   | W | (1,393,190 | )       
|                                                          |                                   |      |            |          |      |   |            |         |  
|Cash flows from financing activities based on Korean GAAP |                                   | W    | (1,418,197 | )        |      | W | (2,261,039 | )       |   | W | (968,570   | )       
|                                                          | Adjustments:                      |      |            |          |      |   |            |         |   |   |            |          |  
|                                                          | Asset securitization transactions |      |            | 490,654  |      |   |            | 55,576  |   |   |            | (546,230 | )
|                                                          |                                   |      |            |          |      |   |            |         |  
|Cash flows from financing activities based on US GAAP     |                                   | W    | (927,543   | )        |      | W | (2,205,463 | )       |   | W | (1,514,800 | )       
|                                                          |                                   |      |            |          |      |   |            |         |  

31. ADDITIONAL DISCLOSURES REQUIRED BY U.S. GAAP




|   |             
|-- | ------------
|a. | Income Taxes



|                  |  |                         |         |   |      |   |         |      |  |   |         | 
|----------------- |  | ----------------------- | ------- | - | ---- | - | ------- | ---- |  | - | ------- | 
|                  |  | Year Ended December 31, |        
|                  |  |                         |        
|                  |  | 2002                    |         |   | 2003 |   |         | 2004 | 
|                  |  |                         |         |   |      |   |         |      | 
|Currently payable |  | W                       | 616,544 |   |      | W | 668,180 |      |  | W | 551,405 | 
|Deferred          |  |                         | (31,532 | ) |      |   | 143,257 |      |  |   | 59,669  | 
|                  |  |                         |         |   |      |   |         |      | 
|                  |  | W                       | 585,012 |   |      | W | 811,437 |      |  | W | 611,074 | 
|                  |  |                         |         |   |      |   |         |      | 

F-69



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##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                                                                  |  |                         |         |   |      |   |         |      |  |   |         |  
|--------------------------------------------------------------------------------- |  | ----------------------- | ------- | - | ---- | - | ------- | ---- |  | - | ------- | -
|                                                                                  |  | Year Ended December 31, |        
|                                                                                  |  |                         |        
|                                                                                  |  | 2002                    |         |   | 2003 |   |         | 2004 | 
|                                                                                  |  |                         |         |   |      |   |         |      | 
|Income taxes at statutory income tax rate of 27%                                  |  | W                       | 518,197 |   |      | W | 776,030 |      |  | W | 584,843 |  
|Resident surtax payable                                                           |  |                         | 51,820  |   |      |   | 77,603  |      |  |   | 58,484  |  
|Tax credit for investments, technology, human resource
    development and others |  |                         | (37,309 | ) |      |   | (83,826 | )    |  |   | (89,080 | )
|Special surtax for agriculture and fishery industries and other                   |  |                         | 11,636  |   |      |   | 13,685  |      |  |   | 13,736  |  
|Undistributed earnings of subsidiaries                                            |  |                         | 12,295  |   |      |   | (5,909  | )    |  |   | 11,011  |  
|Effect of change in income tax rate                                               |  |                         |        |   |      |   | (7,943  | )    |  |   |        |  
|Other permanent differences                                                       |  |                         | 6,714   |   |      |   | 20,719  |      |  |   | 28,705  |  
|Change in valuation allowance                                                     |  |                         | 21,659  |   |      |   | 21,078  |      |  |   | 3,375   |  
|                                                                                  |  |                         |         |   |      |   |         |      | 
|Recorded income taxes                                                             |  | W                       | 585,012 |   |      | W | 808,892 |      |  | W | 611,074 |  
|                                                                                  |  |                         |         |   |      |   |         |      | 
|Effective tax rate                                                                |  |                         | 30.48   | % |      |   | 28.23   | %    |  |   | 28.21   | %
|                                                                                  |  |                         |         |   |      |   |         |      | 

F-70



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##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                        |                                                                  |              |         |          |      |   |          |          |   |   |          |          |  
|--------------------------------------- | ---------------------------------------------------------------- | ------------ | ------- | -------- | ---- | - | -------- | -------- | - | - | -------- | -------- | -
|                                        |                                                                  | December 31, |        
|                                        |                                                                  |              |        
|                                        |                                                                  | 2002         |         |          | 2003 |   |          | 2004     |  
|                                        |                                                                  |              |         |          |      |   |          |          |  
|Current:                                |                                                                  |              |         |          |      |   |          |          |   |   |          |         
|                                        | Allowance for doubtful accounts                                  |              | W       | 21,885   |      |   | W        | 22,039   |   |   | W        | 19,649   |  
|                                        | Write-off of doubtful accounts                                   |              |         | 9,715    |      |   |          | 9,587    |   |   |          | 9,764    |  
|                                        | Marketable trading securities                                    |              |         |         |      |   |          | 1        |   |   |          | (561     | )
|                                        | Accrued income                                                   |              |         | (2,844   | )    |   |          | (2,026   | ) |   |          | (2,463   | )
|                                        | Accrued expenses and other                                       |              |         | 21,936   |      |   |          | 35,622   |   |   |          | 50,189   |  
|                                        |                                                                  |              |         |          |      |   |          |          |  
|                                        |                                                                  |              | 50,692  |          |      |   | 65,223   |          |   |   | 76,578   |         
|                                        |                                                                  |              |         |          |      |   |          |          |  
|Non-current:                            |                                                                  |              |         |          |      |   |          |          |   |   |          |         
|                                        | Depreciation                                                     |              |         | 11,732   |      |   |          | 3,935    |   |   |          | (34,371  | )
|                                        | Loss on disposition of properties                                |              |         |         |      |   |          |         |   |   |          | 11,480   |  
|                                        | Loss on impairment and valuation of investment securities (note) |              |         | 119,940  |      |   |          | 74,928   |   |   |          | 58,419   |  
|                                        | Foreign exchange losses                                          |              |         | 3,345    |      |   |          | 774      |   |   |          |         |  
|                                        | Equity in losses (earnings) of affiliates                        |              |         | (5,090   | )    |   |          | (6,593   | ) |   |          | (12,671  | )
|                                        | Undistributed earnings of subsidiaries                           |              |         | (28,700  | )    |   |          | (3,364   | ) |   |          | (9,434   | )
|                                        | Tax free reserve for technology development                      |              |         | (133,920 | )    |   |          | (182,518 | ) |   |          | (195,103 | )
|                                        | Tax free reserve for loss on disposal of treasury stock          |              |         | (64,775  | )    |   |          | (130,373 | ) |   |          | (130,372 | )
|                                        | Tax credit carryforwards                                         |              |         |         |      |   |          | 1,162    |   |   |          | 5,003    |  
|                                        | Net operating loss carryforwards                                 |              |         |         |      |   |          |         |   |   |          | 25,371   |  
|                                        | Deferred charges and other                                       |              |         | 79,346   |      |   |          | 46,780   |   |   |          | (7,205   | )
|                                        |                                                                  |              |         |          |      |   |          |          |  
|                                        |                                                                  |              | (18,122 | )        |      |   | (195,269 | )        |   |   | (288,883 | )       
|                                        |                                                                  |              |         |          |      |   |          |          |  
|Total deferred tax assets (liabilities) |                                                                  | W            | 32,570  |          |      | W | (130,046 | )        |   | W | (212,305 | )       
|                                        |                                                                  |              |         |          |      |   |          |          |  






|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|------ | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(note) | As of December 31, 2002, unrealized loss on valuation of
    investment securities has been recorded as a separate component
    of shareholders equity, net of tax effect of
    W691 million, and unrealized gain on valuation of
    investment securities as of December 31, 2003 and 2004 was
    recorded as a separate component of shareholders equity,
    net of tax effect of W18,287 million and
    W39,210 million, respectively.

b.     Fair Value of Financial
Instruments




Cash and Cash Equivalents, Accounts Receivable (trade and
other), Short-Term Loans, Accounts Payable and Short-term
Borrowings




F-71



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##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


Trading Securities and Long-term Investment Securities




Long-Term Bank Deposits




Long-Term Loans




Bonds Payable, Bonds with Stock Warrant, Convertible Bonds,
Long-Term Borrowings, Long-Term Payable  Other and
Obligation under Capital Leases






|                       |                                                                                                                                                           |                                  |           |           |            |  |          |           |         |   |            |           |         |          |   |           |            |   |           |           |         |  |   |           |         | 
|---------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------- | --------- | --------- | ---------- |  | -------- | --------- | ------- | - | ---------- | --------- | ------- | -------- | - | --------- | ---------- | - | --------- | --------- | ------- |  | - | --------- | ------- | 
|                       |                                                                                                                                                           | 2002                             |           |           | 2003       |  |          | 2004      |        
|                       |                                                                                                                                                           |                                  |           |           |            |  |          |           |        
|                       |                                                                                                                                                           | Carrying                         |           |           |            |  | Carrying |           |         |   |            | Carrying  |         |          |  
|                       |                                                                                                                                                           | Amount                           |           |           |            |  | Amount   |           |         |   |            | Amount    |         |          |  
|                       |                                                                                                                                                           | (Note a)                         |           |           | Fair Value |  |          | (Note a)  |         |   | Fair Value |           |         | (Note a) |   |           | Fair Value |  
|                       |                                                                                                                                                           |                                  |           |           |            |  |          |           |         |   |            |           |         |          |   |           |            |  
|Financial assets:      |                                                                                                                                                           |                                  |           |           |            |  |          |           |         |   |            |           |         |          |   |           |            |   |           |           |         |  |   |          
|                       | Cash and cash equivalents and short-term financial instruments                                                                                            |                                  | W         | 867,022   |            |  | W        | 867,022   |         |   | W          | 472,410   |         |          | W | 472,410   |            |   | W         | 383,360   |         |  | W | 383,360   |        
|                       | Trading securities                                                                                                                                        |                                  |           | 754,219   |            |  |          | 754,219   |         |   |            | 893,217   |         |          |   | 893,217   |            |   |           | 654,779   |         |  |   | 654,779   |        
|                       | Accounts receivable (trade and other)                                                                                                                     |                                  |           | 2,877,750 |            |  |          | 2,877,750 |         |   |            | 3,000,918 |         |          |   | 3,000,918 |            |   |           | 3,126,754 |         |  |   | 3,126,754 |        
|                       | Short-term loans                                                                                                                                          |                                  |           | 18,296    |            |  |          | 18,296    |         |   |            | 41,933    |         |          |   | 41,933    |            |   |           | 51,232    |         |  |   | 51,232    |        
|                       | Investment securities:                                                                                                                                    |                                  |           |           |            |  |          |           |         |   |            |           |         |          |   |           |            |   |           |           |         |  |   |           |        
|                       |                                                                                                                                                           | Listed equity and debts (note b) |           |           | 852,861    |  |          |           | 852,861 |   |            |           | 503,000 |          |   |           | 503,000    |   |           |           | 597,687 |  |   |           | 597,687 | 
|                       |                                                                                                                                                           | Non- listed equity               |           |           | 543,836    |  |          |           | N/A     |   |            |           | 385,707 |          |   |           | N/A        |   |           |           | 354,123 |  |   |           | N/A     | 
|                       | Long-term bank deposits                                                                                                                                   |                                  |           | 177       |            |  |          | 177       |         |   |            | 352       |         |          |   | 352       |            |   |           | 10,351    |         |  |   | 10,351    |        
|                       | Long-term loans                                                                                                                                           |                                  |           | 12,905    |            |  |          | 9,679     |         |   |            | 13,947    |         |          |   | 10,460    |            |   |           | 12,019    |         |  |   | 9,014     |        
|                       |                                                                                                                                                           |                                  |           |           |            |  |          |           |         |   |            |           |         |          |   |           |            |  
|                       |                                                                                                                                                           | W                                | 5,927,066 |           |            |  |          |           |         | W | 5,311,484  |           |         |          |   |           |            | W | 5,190,305 |           |         |  |   |          
|                       |                                                                                                                                                           |                                  |           |           |            |  |          |           |         |   |            |           |         |          |   |           |            |  
|Financial liabilities: |                                                                                                                                                           |                                  |           |           |            |  |          |           |         |   |            |           |         |          |   |           |            |   |           |           |         |  |   |          
|                       | Accounts payable                                                                                                                                          |                                  | W         | 1,697,502 |            |  | W        | 1,697,502 |         |   | W          | 1,317,162 |         |          | W | 1,317,162 |            |   | W         | 1,205,682 |         |  | W | 1,205,682 |        
|                       | Short-term borrowings                                                                                                                                     |                                  |           | 1,177,950 |            |  |          | 1,177,950 |         |   |            | 1,236,197 |         |          |   | 1,236,197 |            |   |           | 425,496   |         |  |   | 425,496   |        
|                       | Bonds payable, long-term borrowings, convertible bonds,
    long-term payables  other and obligation under
    capital leases, including current portion |                                  |           | 4,413,130 |            |  |          | 4,704,752 |         |   |            | 4,201,707 |         |          |   | 4,283,402 |            |   |           | 4,044,258 |         |  |   | 4,211,926 |        
|                       |                                                                                                                                                           |                                  |           |           |            |  |          |           |         |   |            |           |         |          |   |           |            |  
|                       |                                                                                                                                                           | W                                | 7,288,582 |           |            |  |          |           |         | W | 6,755,066  |           |         |          |   |           |            | W | 9,234,563 |           |         |  |   |          
|                       |                                                                                                                                                           |                                  |           |           |            |  |          |           |         |   |            |           |         |          |   |           |            |  

F-72



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##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)









|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|-------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(note b) | Investments in non  listed equity include the
    investments in the common stock of Powercomm Co., Ltd.
    (Powercomm). Korea Electric Power Corp.
    (KEPCO), the parent company of Powercomm, sold to
    Dacom Corporation 45.5% interest in Powercomm at
    W12,000 per share in 2002. Based on this transaction, the
    fair value of the Companys investments in the common stock
    of Powercomm was determinable and the impairment loss on the
    investment of W150,243 million was recognized in 2002. The
    fair value of common stock of Powercomm as of December 31,
    2003 and 2004 was estimated by an outside professional valuation
    company using the present value of expected future cash flows;
    and the additional impairment loss of W21,593 million was
    recognized in 2003. As of December 31, 2004, unrealized
    gain on valuation of investment in Powercomm of
    W3,158 million has been recorded as other comprehensive
    income.



|   |                     
|-- | --------------------
|c. | Comprehensive Income



|                                 |                                                  |                                               |           |       |          |   |           |      |         |   |           |         |         |  
|-------------------------------- | ------------------------------------------------ | --------------------------------------------- | --------- | ----- | -------- | - | --------- | ---- | ------- | - | --------- | ------- | ------- | -
|                                 |                                                  | 2002                                          |           |       | 2003     |   |           | 2004 |        
|                                 |                                                  |                                               |           |       |          |   |           |      |        
|Net income                       |                                                  | W                                             | 1,301,126 |       |          | W | 2,062,749 |      |         | W | 1,553,076 |        
|                                 |                                                  |                                               |           |       |          |   |           |      |        
|Other comprehensive income:      |                                                  |                                               |           |       |          |   |           |      |         |   |           |        
|                                 | Available-for-sale securities                    |                                               |           |       |          |   |           |      |         |   |           |         |        
|                                 |                                                  | Unrealized gain on investment securities      |           |       | 325,494  |   |           |      | 90,727  |   |           |         | 84,513  |  
|                                 |                                                  | Less impact of realized losses                |           |       | (252,031 | ) |           |      | (21,716 | ) |           |         | (8,434  | )
|                                 |                                                  | Tax effect                                    |           |       | (21,819  | ) |           |      | (18,978 | ) |           |         | (20,923 | )
|                                 |                                                  |                                               |           |       |          |   |           |      |        
|                                 |                                                  | Net change from available-for-sale securities |           |       | 51,644   |   |           |      | 50,033  |   |           |         | 55,156  |  
|                                 |                                                  |                                               |           |       |          |   |           |      |        
|                                 | Foreign-based operations translation adjustments |                                               |           | 2,809 |          |   |           | (356 | )       |   |           | (11,128 | )      
|                                 |                                                  |                                               |           |       |          |   |           |      |        
|Total other comprehensive income |                                                  |                                               | 54,453    |       |          |   | 49,677    |      |         |   | 44,028    |        
|                                 |                                                  |                                               |           |       |          |   |           |      |        
|Comprehensive income             |                                                  | W                                             | 1,355,579 |       |          | W | 2,112,426 |      |         | W | 1,597,104 |        
|                                 |                                                  |                                               |           |       |          |   |           |      |        



|   |                                     
|-- | ------------------------------------
|d. | Goodwill and other intangible assets



F-73



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##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




Goodwill




|                    |                                                        |      |           |         |      |   |           |         |   |   |           |       | 
|------------------- | ------------------------------------------------------ | ---- | --------- | ------- | ---- | - | --------- | ------- | - | - | --------- | ----- | 
|                    |                                                        | 2002 |           |         | 2003 |   |           | 2004    |  
|                    |                                                        |      |           |         |      |   |           |         |  
|Beginning of period |                                                        | W    | 2,833,752 |         |      | W | 3,400,110 |         |   | W | 3,400,155 |      
|                    | Goodwill reclassifications to other intangibles assets |      |           |        |      |   |           | (16,437 | ) |   |           |      | 
|                    | Goodwill acquired during the period                    |      |           | 566,358 |      |   |           | 16,482  |   |   |           | 8,834 | 
|                    | Goodwill impairment losses                             |      |           |        |      |   |           |        |   |   |           |      | 
|                    |                                                        |      |           |         |      |   |           |         |  
|Ending of period    |                                                        | W    | 3,400,110 |         |      | W | 3,400,155 |         |   | W | 3,408,989 |      
|                    |                                                        |      |           |         |      |   |           |         |  

Other Intangible Assets




|                             |                          |                   |           |           |                   |   |          |                   |   |   |              |           |  |          |          |          |              |   |           |           |  |   |          |          |  
|---------------------------- | ------------------------ | ----------------- | --------- | --------- | ----------------- | - | -------- | ----------------- | - | - | ------------ | --------- |  | -------- | -------- | -------- | ------------ | - | --------- | --------- |  | - | -------- | -------- | -
|                             |                          | December 31, 2002 |           |           | December 31, 2003 |   |          | December 31, 2004 |  
|                             |                          |                   |           |           |                   |   |          |                   |  
|                             |                          | Gross             |           |           |                   |   | Gross    |                   |   |   |              | Gross     |  |          |         
|                             |                          | Carrying          |           |           | Accumulated       |   |          | Carrying          |   |   | Accumulated  |           |  | Carrying |          |          | Accumulated  |  
|                             |                          | Amount            |           |           | Amortization      |   |          | Amount            |   |   | Amortization |           |  | Amount   |          |          | Amortization |  
|                             |                          |                   |           |           |                   |   |          |                   |   |   |              |           |  |          |          |          |              |  
|Amortized intangible assets: |                          |                   |           |           |                   |   |          |                   |   |   |              |           |  |          |          |          |              |   |           |           |  |   |          |         
|                             | IMT license (13 years)   |                   | W         | 1,189,881 |                   |   | W        |                  |   |   | W            | 1,188,547 |  |          | W        | (7,548   | )            |   | W         | 1,188,547 |  |   | W        | (98,183  | )
|                             | Customer lists (4 years) |                   |           | 99,783    |                   |   |          | (39,142           | ) |   |              | 99,783    |  |          |          | (64,088  | )            |   |           | 99,783    |  |   |          | (83,686  | )
|                             | Other (5 to 20 years)    |                   |           | 344,708   |                   |   |          | (158,248          | ) |   |              | 552,279   |  |          |          | (258,802 | )            |   |           | 718,291   |  |   |          | (354,021 | )
|                             |                          |                   |           |           |                   |   |          |                   |   |   |              |           |  |          |          |          |              |  
|Total                        |                          | W                 | 1,634,372 |           |                   | W | (197,390 | )                 |   | W | 1,840,609    |           |  | W        | (330,438 | )        |              | W | 2,066,621 |           |  | W | (535,890 | )       
|                             |                          |                   |           |           |                   |   |          |                   |   |   |              |           |  |          |          |          |              |  





|   |                         
|-- | ------------------------
|e. | Other SK Group Companies



F-74



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##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






|   |                  
|-- | -----------------
|f. | Operating Revenue



|                        |  |      |           |  |      |   |            |      |  |   |            | 
|----------------------- |  | ---- | --------- |  | ---- | - | ---------- | ---- |  | - | ---------- | 
|                        |  | 2002 |           |  | 2003 |   |            | 2004 | 
|                        |  |      |           |  |      |   |            |      | 
|Wireless services       |  | W    | 7,475,371 |  |      | W | 8,401,021  |      |  | W | 8,762,376  | 
|Interconnection         |  |      | 1,043,174 |  |      |   | 1,017,056  |      |  |   | 849,407    | 
|Digital handset sales   |  |      | 534,038   |  |      |   | 611,981    |      |  |   | 649,809    | 
|Other                   |  |      | 167,147   |  |      |   | 180,306    |      |  |   | 272,974    | 
|                        |  |      |           |  |      |   |            |      | 
|Total operating revenue |  | W    | 9,219,730 |  |      | W | 10,210,364 |      |  | W | 10,534,566 | 
|                        |  |      |           |  |      |   |            |      | 



|   |        
|-- | -------
|g. | Segment





|   |                              
|-- | -----------------------------
|h. | New Accounting Pronouncements







F-75



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##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






F-76



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##### Table of Contents








|         |         
|-------- | --------
|Item. 19 | Exhibits

|        |    |    |             |                                                                                                                                                                                     
|------- | -- | -- | ----------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |    |    | Description
|        |    |    |            
|        | 1  | .1 |             | Articles of Incorporation, as amended and restated (English
    translation)*                                                                                                       
|        | 4  | .1 |             | Telecommunications Basic Law of 1983, as amended (English
    translation)**                                                                                                        
|        | 4  | .2 |             | Enforcement Decree of the Telecommunications Basic Law, as
    amended (English translation)*                                                                                       
|        | 4  | .3 |             | Telecommunications Business Law of 1983, as amended (English
    translation)**                                                                                                     
|        | 4  | .4 |             | Enforcement Decree of the Telecommunications Business Law
    (English translation)*                                                                                                
|        | 4  | .5 |             | Amendment to Telecommunications Business Law of 1983 dated
    February 9, 2004 (English translation)*                                                                              
|        | 4  | .6 |             | Korean Commercial Code (together with English translation)
    (Incorporated by reference herein from our Form 20-F filed
    on June 30, 2000)                                     
|        | 4  | .7 |             | Amendment to Korean Commercial Code dated December 29, 2001
    (together with English translation) (Incorporated by reference
    herein from our Form 20-F filed on June 28, 2002)
|        | 4  | .8 |             | Korean Securities and Exchange Act, as amended (English
    translation)*                                                                                                           
|        | 11 | .1 |             | Code of Ethics of SK Telecom Co., Ltd.*                                                                                                                                             
|        | 12 | .1 |             | Certification of Principal Executive Officer Pursuant to
    Section 302 of the Sarbanes-Oxley Act of 2002*                                                                         
|        | 12 | .2 |             | Certification of Principal Financial Officer Pursuant to
    Section 302 of the Sarbanes-Oxley Act of 2002*                                                                         
|        | 13 | .1 |             | Certification of Principal Executive Officer Pursuant to
    18 U.S.C. Section 1350, As Adopted Pursuant to
    Section 906 of the Sarbanes-Oxley Act of 2002*                      
|        | 13 | .2 |             | Certification of Principal Financial Officer Pursuant to
    18 U.S.C. Section 1350, As Adopted Pursuant to
    Section 906 of the Sarbanes-Oxley Act of 2002*                      
|        | 99 | .1 |             | Consent of Deloitte HanaAnjin LLC*                                                                                                                                                  






|  |                
|- | ---------------
|* | Filed herewith.



|   |                                                                         
|-- | ------------------------------------------------------------------------
|** | Filed previously as exhibits to our Form 20-F filed on
    June 3, 2003.

E-1



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##### Table of Contents



SIGNATURES






| |                     
| | --------------------
| | SK Telecom Co., Ltd.



| |     |                 
| | --- | ----------------
| | By: | /s/ Shin Bae Kim

| |                                 
| | --------------------------------
| |                                 
| | Name:  Shin Bae Kim             
| | Title:   Chief Executive Officer