##### Table of Contents



As filed with the Securities and Exchange Commission on
June 30, 2006








UNITED STATES SECURITIES AND EXCHANGE COMMISSION


WASHINGTON, D.C. 20549





FORM 20-F





|           |  |                                                                                                   
|---------- |  | --------------------------------------------------------------------------------------------------
|(Mark One)
|o          |  | REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR
    (g) OF THE SECURITIES EXCHANGE ACT OF 1934
|           |  | OR                                                                                                
|þ          |  | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934          
|           |  | For the fiscal year ended December 31, 2005                                                       
|           |  | OR                                                                                                
|o          |  | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934      
|           |  | OR                                                                                                
|o          |  | SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
    THE SECURITIES EXCHANGE ACT OF 1934   
|           |  | Date of event requiring this shall company report                                                 
|           |  | For the transition period
    from          to                                                    

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, EULJIRO 2-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 |  | New York Stock Exchange, Inc.            
|of Common Stock                                                          |  |                                          
|Common Stock, par value W500 per share                                   |  | New York Stock Exchange, Inc.*           



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


None


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


None







82,276,711 shares of common stock, par value
W500 per share


þ o


o þ


þ o


12b-2


|                           |                      |                         
|-------------------------- | -------------------- | ------------------------
|Large accelerated filer  þ | Accelerated filer  o | Non-accelerated filer  o

o þ


12b-2 o þ


(APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PAST FIVE YEARS)


o o










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##### Table of Contents










TABLE OF CONTENTS


|                                                              |  |                                                         |   |                                                             |    |      |    | 
|------------------------------------------------------------- |  | ------------------------------------------------------- | - | ----------------------------------------------------------- | -- | ---- | -- | 
|                                                              |  |                                                         |   |                                                             |    | Page |   
|                                                              |  |                                                         |   |                                                             |    |      |   
|Certain Defined Terms and Conventions used
    in this Report |  |                                                         | 1 |                                                            
|Forward-Looking Statements                                    |  |                                                         | 2 |                                                            
|Item 1.                                                       |  | Identity of Directors, Senior Managers and
    Advisers |   |                                                             | 3  |     
|                                                              |  | Item 1A.                                                |   | Directors and Senior Management                             |    |      | 3  | 
|                                                              |  | Item 1B.                                                |   | Advisers                                                    |    |      | 3  | 
|                                                              |  | Item 1C.                                                |   | Auditors                                                    |    |      | 3  | 
|Item 2.                                                       |  | Offer Statistics and Expected Timetable                 |   |                                                             | 3  |     
|Item 3.                                                       |  | Key Information                                         |   |                                                             | 3  |     
|                                                              |  | Item 3A.                                                |   | Selected Financial Data                                     |    |      | 3  | 
|                                                              |  | Item 3B.                                                |   | Capitalization and Indebtedness                             |    |      | 8  | 
|                                                              |  | Item 3C.                                                |   | Reasons for the Offer and Use of
    Proceeds               |    |      | 8  | 
|                                                              |  | Item 3D.                                                |   | Risk Factors                                                |    |      | 8  | 
|Item 4.                                                       |  | Information on the Company                              |   |                                                             | 22 |     
|                                                              |  | Item 4A.                                                |   | History and Development of the Company                      |    |      | 22 | 
|                                                              |  | Item 4B.                                                |   | Business Overview                                           |    |      | 27 | 
|                                                              |  | Item 4C.                                                |   | Organizational Structure                                    |    |      | 54 | 
|                                                              |  | Item 4D.                                                |   | Property, Plants and Equipment                              |    |      | 55 | 
|Item 4.A.                                                     |  | Unresolved Staff Comments                               |   |                                                             | 55 |     
|Item 5.                                                       |  | Operating and Financial Review and
    Prospects        |   |                                                             | 56 |     
|                                                              |  | Item 5A.                                                |   | Operating Results                                           |    |      | 56 | 
|                                                              |  | Item 5B.                                                |   | Liquidity and Capital Resources                             |    |      | 65 | 
|                                                              |  | Item 5C.                                                |   | Research and Development                                    |    |      | 78 | 
|                                                              |  | Item 5D.                                                |   | Trend Information                                           |    |      | 80 | 
|                                                              |  | Item 5E.                                                |   | Off-Balance Sheet Arrangements                              |    |      | 80 | 
|                                                              |  | Item 5F.                                                |   | Tabular Disclosure of Contractual
    Obligations           |    |      | 80 | 
|Item 6.                                                       |  | Directors, Senior Management and
    Employees          |   |                                                             | 80 |     
|                                                              |  | Item 6A.                                                |   | Directors and Senior Management                             |    |      | 80 | 
|                                                              |  | Item 6B.                                                |   | Compensation                                                |    |      | 83 | 
|                                                              |  | Item 6C.                                                |   | Board Practices                                             |    |      | 84 | 
|                                                              |  | Item 6D.                                                |   | Employees                                                   |    |      | 87 | 
|                                                              |  | Item 6E.                                                |   | Share Ownership                                             |    |      | 88 | 
|Item 7.                                                       |  | Major Shareholders and Related Party
    Transactions   |   |                                                             | 89 |     
|                                                              |  | Item 7A.                                                |   | Major Shareholders                                          |    |      | 89 | 
|                                                              |  | Item 7B.                                                |   | Related Party Transactions                                  |    |      | 91 | 
|                                                              |  | Item 7C.                                                |   | Interest of Experts and Counsel                             |    |      | 92 | 
|Item 8.                                                       |  | Financial Information                                   |   |                                                             | 93 |     
|                                                              |  | Item 8A.                                                |   | Consolidated Statements and Other Financial
    Information |    |      | 93 | 
|                                                              |  | Item 8B.                                                |   | Significant Changes                                         |    |      | 97 | 

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|                                                              |  |                                                                                  |  |                                                                            |     |      |     | 
|------------------------------------------------------------- |  | -------------------------------------------------------------------------------- |  | -------------------------------------------------------------------------- | --- | ---- | --- | 
|                                                              |  |                                                                                  |  |                                                                            |     | Page |    
|                                                              |  |                                                                                  |  |                                                                            |     |      |    
|Item 9.                                                       |  | The Offer and Listing                                                            |  |                                                                            | 97  |     
|                                                              |  | Item 9A.                                                                         |  | Offering and Listing Details                                               |     |      | 97  | 
|                                                              |  | Item 9B.                                                                         |  | Plan of Distribution                                                       |     |      | 97  | 
|                                                              |  | Item 9C.                                                                         |  | Markets                                                                    |     |      | 97  | 
|                                                              |  | Item 9D.                                                                         |  | Selling Shareholders                                                       |     |      | 105 | 
|                                                              |  | Item 9E.                                                                         |  | Dilution                                                                   |     |      | 105 | 
|                                                              |  | Item 9F.                                                                         |  | Expenses of the Issue                                                      |     |      | 105 | 
|Item 10.                                                      |  | Additional Information                                                           |  |                                                                            | 105 |     
|                                                              |  | Item 10A.                                                                        |  | Share Capital                                                              |     |      | 105 | 
|                                                              |  | Item 10B.                                                                        |  | Memorandum and Articles of Association                                     |     |      | 105 | 
|                                                              |  | Item 10C.                                                                        |  | Material Contracts                                                         |     |      | 118 | 
|                                                              |  | Item 10D.                                                                        |  | Exchange Controls                                                          |     |      | 119 | 
|                                                              |  | Item 10E.                                                                        |  | Taxation                                                                   |     |      | 123 | 
|                                                              |  | Item 10F.                                                                        |  | Dividends and Paying Agents                                                |     |      | 127 | 
|                                                              |  | Item 10G.                                                                        |  | Statements by Experts                                                      |     |      | 127 | 
|                                                              |  | Item 10H.                                                                        |  | Documents on Display                                                       |     |      | 127 | 
|                                                              |  | Item 10I.                                                                        |  | Subsidiary Information                                                     |     |      | 128 | 
|Item 11.                                                      |  | Quantitative and Qualitative Disclosures
    about Market Risk                   |  |                                                                            | 128 |     
|Item 12.                                                      |  | Description of Securities Other than Equity
    Securities                       |  |                                                                            | 129 |     
|Item 13.                                                      |  | Defaults, Dividend Arrearages and
    Delinquencies                              |  |                                                                            | 129 |     
|Item 14.                                                      |  | Material Modifications to the Rights of
    Security Holders and Use of Proceeds |  |                                                                            | 129 |     
|Item 15.                                                      |  | Controls and Procedures                                                          |  |                                                                            | 129 |     
|Item 16.                                                      |  | Reserved                                                                         |  |                                                                            |     |      |     | 
|                                                              |  | Item 16A.                                                                        |  | Audit Committee Financial Expert                                           |     |      | 130 | 
|                                                              |  | Item 16B.                                                                        |  | Code of Ethics                                                             |     |      | 130 | 
|                                                              |  | Item 16C.                                                                        |  | Principal Accountant Fees and Service                                      |     |      | 130 | 
|                                                              |  | Item 16D.                                                                        |  | Exemptions from the Listing Standards for
    Audit Committees             |     |      | 131 | 
|                                                              |  | Item 16E.                                                                        |  | Purchases of Equity Securities by the
    Issuer and Affiliated Purchasers |     |      | 131 | 
|Item 17.                                                      |  | Financial Statements                                                             |  |                                                                            | 132 |     
|Item 18.                                                      |  | Financial Statements                                                             |  |                                                                            | 132 |     
|Item 19.                                                      |  | Exhibits                                                                         |  |                                                                            | 133 |     
|EX-1.1 ARTICLES OF ASSOCIATION                               
|EX-2.1 DEPOSIT AGREEMENT                                     
|EX-4.1 TELECOMMUNICATIONS BASIC LAW OF 1983                  
|EX-4.2 ENFORCEMENT DECREE OF THE TELECOMMUNICATIONS BASIC LAW
|EX-4.3 TELECOMMUNICATIONS BUSINESS LAW OF 1983               
|EX-4.7 KOREAN SECURITIES AND EXCHANGE ACT                    
|EX-8.1 LIST OF SUBSIDIARIES OF SK TELECOM CO., LTD.          
|EX-12.1 CERTIFICATION OF CEO PURSUANT TO SECTION 302         
|EX-12.2 CERTIFICATION OF CFO PURSUANT TO SECTION 302         
|EX-13.1 CERTIFICATION OF CEO PURSUANT TO SECTION 906         
|EX-13.2 CERTIFICATION OF CFO PURSUANT TO SECTION 906         
|EX-99.1 CONSENT OF DELOITTE ANJIN LLC                        



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CERTAIN DEFINED TERMS AND CONVENTIONS USED IN THIS REPORT








W






1



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FORWARD-LOOKING STATEMENTS








| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | our ability to anticipate and respond to various competitive
    factors affecting the wireless telecommunications industry,
    including new services that may be introduced, changes in
    consumer preferences, economic conditions and discount pricing
    strategies by competitors;                                                                                                                                                                  
|
| |  | our implementation of high-speed download packet access, or
    HSDPA, technology and wireless broadband internet, or WiBro,
    technology;                                                                                                                                                                                                                                                                                                                  
|
| |  | our plans to spend approximately Won 1.6 trillion for capital
    expenditures in 2006 for a range of projects, including
    expansion of our upgraded, HSDPA-ready WCDMA network, as well as
    investments in our wireless Internet-related businesses 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 regulations of the Ministry of Information and
    Communication, or the MIC, related to telecommunications
    providers, rules related to our status as a
    market-dominating business entity under the Korean
    Monopoly Regulation and Fair Trade Act, or the Fair Trade Act,
    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 our competitors; regulatory fees; operating
    costs and expenditures; working capital requirements; principal
    repayment obligations with respect to long-term borrowings,
    bonds and obligations under capital leases; and research and
    development expenditures and other financial estimates;                                                           
|
| |  | the success of our various joint ventures and investments in
    other telecommunications service providers; and                                                                                                                                                                                                                                                                                                                                              
|
| |  | the growth of the telecommunications industry in Korea and other
    markets in which we do business and the effect that economic,
    political or social conditions have on our number of
    subscribers, call volumes and results of operations.                                                                                                                                                                                                          



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|        |                                                          
|------- | ---------------------------------------------------------
|Item 1. | IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND
    ADVISERS






|         |                                
|-------- | -------------------------------
|Item 1A. | Directors and Senior Management

Not applicable.







|         |         
|-------- | --------
|Item 1B. | Advisers

Not applicable.







|         |         
|-------- | --------
|Item 1C. | Auditors

Not applicable.







|        |                                        
|------- | ---------------------------------------
|Item 2. | OFFER STATISTICS AND EXPECTED TIMETABLE

Not applicable.







|        |                
|------- | ---------------
|Item 3. | KEY INFORMATION






|         |                        
|-------- | -----------------------
|Item 3A. | Selected Financial Data





|                                                 |                     |                                                                                    |            |         |      |   |            |         |  |   |            |          |  |      |            |          |      |   |            |          |  |     |            |          | 
|------------------------------------------------ | ------------------- | ---------------------------------------------------------------------------------- | ---------- | ------- | ---- | - | ---------- | ------- |  | - | ---------- | -------- |  | ---- | ---------- | -------- | ---- | - | ---------- | -------- |  | --- | ---------- | -------- | 
|                                                 |                     | As of or for the Year Ended December 31,                                           |           
|                                                 |                     |                                                                                    |           
|                                                 |                     | 2001                                                                               |            |         | 2002 |   |            | 2003    |  |   | 2004       |          |  | 2005 |            |          | 2005 |  
|                                                 |                     |                                                                                    |            |         |      |   |            |         |  |   |            |          |  |      |            |          |      |  
|                                                 |                     | (In billions of won and millions of dollars, except per share and percentage data) |           
|INCOME STATEMENT DATA                            |                     |                                                                                    |            |         |      |   |            |         |  |   |            |          |  |      |            |          |      |   |            |          |  |     |            |         
|Korean GAAP:                                     |                     |                                                                                    |            |         |      |   |            |         |  |   |            |          |  |      |            |          |      |   |            |          |  |     |            |         
|Total Operating Revenue(1)                       |                     | W                                                                                  | 8,371.9    |         |      | W | 9,324.0    |         |  | W | 10,272.1   |          |  | W    | 10,570.6   |          |      | W | 10,721.8   |          |  | US$ | 10,615.6   |         
|                                                 | Cellular Service(1) |                                                                                    |            | 8,203.0 |      |   |            | 9,156.8 |  |   |            | 10,091.8 |  |      |            | 10,297.6 |      |   |            | 10,361.9 |  |     |            | 10,259.3 | 
|                                                 | Paging Service(2)   |                                                                                    |            | 8.8     |      |   |            |        |  |   |            |         |  |      |            |         |      |   |            |         |  |     |            |         | 
|                                                 | Other(3)            |                                                                                    |            | 160.1   |      |   |            | 167.2   |  |   |            | 180.3    |  |      |            | 273.0    |      |   |            | 359.9    |  |     |            | 356.3    | 
|Operating Expenses                               |                     |                                                                                    | 6,047.4    |         |      |   | 6,526.4    |         |  |   | 7,167.0    |          |  |      | 8,130.9    |          |      |   | 8,051.2    |          |  |     | 7,971.5    |         
|Operating Income                                 |                     |                                                                                    | 2,324.5    |         |      |   | 2,797.6    |         |  |   | 3,105.1    |          |  |      | 2,439.7    |          |      |   | 2,670.6    |          |  |     | 2,644.2    |         
|Income before Income Taxes and Minority Interest |                     |                                                                                    | 1,976.7    |         |      |   | 2,218.8    |         |  |   | 2,754.3    |          |  |      | 2,123.2    |          |      |   | 2,561.6    |          |  |     | 2,536.2    |         
|Income before Minority Interest                  |                     |                                                                                    | 1,126.4    |         |      |   | 1,520.3    |         |  |   | 1,965.3    |          |  |      | 1,493.4    |          |      |   | 1,868.3    |          |  |     | 1,849.8    |         
|Net Income                                       |                     |                                                                                    | 1,146.0    |         |      |   | 1,487.2    |         |  |   | 1,966.1    |          |  |      | 1,491.5    |          |      |   | 1,873.0    |          |  |     | 1,854.5    |         
|Income per Share of Common Stock(4)              |                     |                                                                                    | 13,242     |         |      |   | 17,647     |         |  |   | 26,187     |          |  |      | 20,261     |          |      |   | 25,443     |          |  |     | 25.19      |         
|Diluted Net Income per Share of Common Stock(4)  |                     |                                                                                    | 13,242     |         |      |   | 17,647     |         |  |   | 26,187     |          |  |      | 20,092     |          |      |   | 25,036     |          |  |     | 24.79      |         
|Dividends Declared per Share of Common Stock(5)  |                     |                                                                                    | 690        |         |      |   | 1,800      |         |  |   | 5,500      |          |  |      | 10,300     |          |      |   | 9,000      |          |  |     | 8.91       |         
|Weighted Average Number of Shares                |                     |                                                                                    | 86,545,041 |         |      |   | 84,270,450 |         |  |   | 75,078,219 |          |  |      | 73,614,297 |          |      |   | 73,614,296 |          |  |     | 73,614,296 |         

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|                                                |  |                                                                                    |          |   |      |   |          |      |  |   |          |   |  |      |          |   |      |   |          |   |  |     |          |  
|----------------------------------------------- |  | ---------------------------------------------------------------------------------- | -------- | - | ---- | - | -------- | ---- |  | - | -------- | - |  | ---- | -------- | - | ---- | - | -------- | - |  | --- | -------- | -
|                                                |  | As of or for the Year Ended December 31,                                           |         
|                                                |  |                                                                                    |         
|                                                |  | 2001                                                                               |          |   | 2002 |   |          | 2003 |  |   | 2004     |   |  | 2005 |          |   | 2005 |  
|                                                |  |                                                                                    |          |   |      |   |          |      |  |   |          |   |  |      |          |   |      |  
|                                                |  | (In billions of won and millions of dollars, except per share and percentage data) |         
|U.S. GAAP:                                      |  |                                                                                    |          |   |      |   |          |      |  |   |          |   |  |      |          |   |      |   |          |   |  |     |          |  
|Total Operating Revenue                         |  | W                                                                                  | 8,307.1  |   |      | W | 9,219.7  |      |  | W | 10,225.1 |   |  | W    | 10,534.6 |   |      | W | 10,701.4 |   |  | US$ | 10,595.5 |  
|Operating Expenses                              |  |                                                                                    | 6,235.0  |   |      |   | 6,643.4  |      |  |   | 7,044.5  |   |  |      | 8,137.6  |   |      |   | 7,847.7  |   |  |     | 7,770.0  |  
|Operating Income                                |  |                                                                                    | 2,072.1  |   |      |   | 2,576.3  |      |  |   | 3,180.6  |   |  |      | 2,397.0  |   |      |   | 2,853.7  |   |  |     | 2,825.5  |  
|Net Income                                      |  |                                                                                    | 1,111.6  |   |      |   | 1,301.1  |      |  |   | 2,062.7  |   |  |      | 1,553.1  |   |      |   | 2,027.6  |   |  |     | 2,007.5  |  
|Income per Share of Common Stock(4)             |  |                                                                                    | 12,844   |   |      |   | 15,440   |      |  |   | 27,475   |   |  |      | 21,097   |   |      |   | 27,543   |   |  |     | 27.27    |  
|Diluted Net Income per Share of Common Stock(4) |  |                                                                                    | 12,844   |   |      |   | 15,439   |      |  |   | 27,475   |   |  |      | 20,918   |   |      |   | 27,089   |   |  |     | 26.82    |  
|BALANCE SHEET DATA                              |  |                                                                                    |          |   |      |   |          |      |  |   |          |   |  |      |          |   |      |   |          |   |  |     |          |  
|Korean GAAP:                                    |  |                                                                                    |          |   |      |   |          |      |  |   |          |   |  |      |          |   |      |   |          |   |  |     |          |  
|Working Capital (Deficiency)(6)                 |  | W                                                                                  | 668.2    |   |      | W | (189.7   | )    |  | W | (461.4   | ) |  | W    | 1,323.8  |   |      | W | 1,735.2  |   |  | US$ | 1,718.0  |  
|Fixed Assets  Net                              |  |                                                                                    | 4,174.7  |   |      |   | 4,569.4  |      |  |   | 4,641.5  |   |  |      | 4,703.9  |   |      |   | 4,663.4  |   |  |     | 4,617.2  |  
|Total Assets                                    |  |                                                                                    | 13,326.3 |   |      |   | 14,228.7 |      |  |   | 13,818.2 |   |  |      | 14,283.4 |   |      |   | 14,704.8 |   |  |     | 14,559.2 |  
|Long-term Liabilities(7)                        |  |                                                                                    | 3,498.4  |   |      |   | 3,693.4  |      |  |   | 3,193.5  |   |  |      | 4,010.7  |   |      |   | 3,513.9  |   |  |     | 3,479.1  |  
|Total Shareholders Equity                      |  |                                                                                    | 6,149.3  |   |      |   | 6,231.9  |      |  |   | 6,093.8  |   |  |      | 7,205.7  |   |      |   | 8,327.5  |   |  |     | 8,245.1  |  
|U.S. GAAP:                                      |  |                                                                                    |          |   |      |   |          |      |  |   |          |   |  |      |          |   |      |   |          |   |  |     |          |  
|Working Capital (Deficiency)                    |  |                                                                                    | 729.6    |   |      |   | (108.2   | )    |  |   | (445.5   | ) |  |      | 1,311.3  |   |      |   | 1,587.2  |   |  |     | 1,571.5  |  
|Total Assets                                    |  |                                                                                    | 13,841.0 |   |      |   | 15,720.7 |      |  |   | 15,586.2 |   |  |      | 15,576.8 |   |      |   | 16,351.2 |   |  |     | 16,189.3 |  
|Total Shareholders Equity                      |  |                                                                                    | 5,820.1  |   |      |   | 6,356.2  |      |  |   | 7,014.7  |   |  |      | 8,237.0  |   |      |   | 9,472.4  |   |  |     | 9,378.6  |  
|OTHER FINANCIAL DATA                            |  |                                                                                    |          |   |      |   |          |      |  |   |          |   |  |      |          |   |      |   |          |   |  |     |          |  
|Korean GAAP:                                    |  |                                                                                    |          |   |      |   |          |      |  |   |          |   |  |      |          |   |      |   |          |   |  |     |          |  
|EBITDA(8)                                       |  | W                                                                                  | 3,932.4  |   |      | W | 3,954.1  |      |  | W | 4,706.4  |   |  | W    | 4,085.8  |   |      | W | 4,434.2  |   |  | US$ | 4,390.3  |  
|Capital Expenditures(9)                         |  |                                                                                    | 1,382.1  |   |      |   | 2,024.7  |      |  |   | 1,647.6  |   |  |      | 1,631.9  |   |      |   | 1,416.6  |   |  |     | 1,402.6  |  
|R&D Expenses(10)                                |  |                                                                                    | 153.7    |   |      |   | 253.3    |      |  |   | 300.7    |   |  |      | 336.1    |   |      |   | 321.1    |   |  |     | 317.9    |  
|Internal R&D                                    |  |                                                                                    | 130.7    |   |      |   | 194.3    |      |  |   | 235.8    |   |  |      | 267.1    |   |      |   | 252.0    |   |  |     | 249.5    |  
|External R&D                                    |  |                                                                                    | 23.0     |   |      |   | 59.0     |      |  |   | 64.9     |   |  |      | 69.0     |   |      |   | 69.1     |   |  |     | 68.4     |  
|Depreciation and Amortization                   |  |                                                                                    | 1,759.6  |   |      |   | 1,543.3  |      |  |   | 1,646.3  |   |  |      | 1,752.5  |   |      |   | 1,675.5  |   |  |     | 1,658.9  |  
|Cash Flow from Operating Activities             |  |                                                                                    | 2,424.5  |   |      |   | 4,268.4  |      |  |   | 3,329.4  |   |  |      | 2,516.8  |   |      |   | 3,404.1  |   |  |     | 3,370.4  |  
|Cash Flow from Investing Activities             |  |                                                                                    | (1,973.4 | ) |      |   | (3,064.0 | )    |  |   | (1,415.1 | ) |  |      | (1,470.3 | ) |      |   | (1,938.2 | ) |  |     | (1,919.0 | )
|Cash Flow from Financing Activities             |  |                                                                                    | 331.2    |   |      |   | (1,418.2 | )    |  |   | (2,261.0 | ) |  |      | (968.6   | ) |      |   | (1,429.0 | ) |  |     | (1,414.9 | )
|Margins (% of total sales):                     |  |                                                                                    |          |   |      |   |          |      |  |   |          |   |  |      |          |   |      |   |          |   |  |     |          |  
|EBITDA Margin(8)                                |  |                                                                                    | 47.0     | % |      |   | 42.4     | %    |  |   | 45.8     | % |  |      | 38.7     | % |      |   | 41.4     | % |  |     | 41.4     | %
|Operating Margin                                |  |                                                                                    | 27.8     |   |      |   | 30.0     |      |  |   | 30.2     |   |  |      | 23.1     |   |      |   | 24.9     |   |  |     | 24.9     |  
|Net Margin                                      |  |                                                                                    | 13.7     |   |      |   | 15.9     |      |  |   | 19.1     |   |  |      | 14.1     |   |      |   | 17.5     |   |  |     | 17.5     |  
|U.S. GAAP:                                      |  |                                                                                    |          |   |      |   |          |      |  |   |          |   |  |      |          |   |      |   |          |   |  |     |          |  
|EBITDA(8)                                       |  |                                                                                    | 3,859.1  |   |      |   | 3,620.7  |      |  |   | 4,679.1  |   |  |      | 3,970.4  |   |      |   | 4,412.2  |   |  |     | 4,368.5  |  
|Capital Expenditures(9)                         |  |                                                                                    | 1,382.1  |   |      |   | 2,024.7  |      |  |   | 1,668.0  |   |  |      | 1,656.9  |   |      |   | 1,429.3  |   |  |     | 1,415.1  |  
|Cash Flow from Operating Activities             |  |                                                                                    | 2,428.3  |   |      |   | 3,606.2  |      |  |   | 3,144.3  |   |  |      | 3,228.9  |   |      |   | 3,293.8  |   |  |     | 3,261.2  |  
|Cash Flow from Investing Activities             |  |                                                                                    | (1,977.3 | ) |      |   | (2,892.5 | )    |  |   | (1,285.5 | ) |  |      | (1,634.1 | ) |      |   | (1,816.5 | ) |  |     | (1,798.5 | )
|Cash Flow from Financing Activities             |  |                                                                                    | 331.2    |   |      |   | (927.5   | )    |  |   | (2,205.5 | ) |  |      | (1,514.8 | ) |      |   | (1,439.3 | ) |  |     | (1,425.1 | )

4



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##### Table of Contents



|                                                          |  |                                          |            |   |      |   |            |      |  |   |            |   |  |      |            |   |  |   |            |  
|--------------------------------------------------------- |  | ---------------------------------------- | ---------- | - | ---- | - | ---------- | ---- |  | - | ---------- | - |  | ---- | ---------- | - |  | - | ---------- | -
|                                                          |  | As of or for the Year Ended December 31, |           
|                                                          |  |                                          |           
|                                                          |  | 2001                                     |            |   | 2002 |   |            | 2003 |  |   | 2004       |   |  | 2005 |           
|                                                          |  |                                          |            |   |      |   |            |      |  |   |            |   |  |      |           
|SELECTED OPERATING DATA                                   |  |                                          |            |   |      |   |            |      |  |   |            |   |  |      |            |   |  |   |            |  
|Population of Korea (millions)(11)                        |  |                                          | 47.4       |   |      |   | 47.6       |      |  |   | 47.9       |   |  |      | 48.2       |   |  |   | 48.3       |  
|Our Wireless Penetration(12)                              |  |                                          | 32.0       |   |      |   | 36.1       |      |  |   | 38.2       |   |  |      | 39.0       |   |  |   | 40.4       |  
|Number of Employees(13)                                   |  |                                          | 5,693      |   |      |   | 6,241      |      |  |   | 6,286      |   |  |      | 7,353      |   |  |   | 6,646      |  
|Total Sales per Employee (millions)                       |  | W                                        | 1,470.6    |   |      | W | 1,494.0    |      |  | W | 1,634.1    |   |  | W    | 1,437.6    |   |  | W | 1,613.3    |  
|Wireless Subscribers(14)                                  |  |                                          | 15,179,163 |   |      |   | 17,219,562 |      |  |   | 18,313,315 |   |  |      | 18,783,338 |   |  |   | 19,530,117 |  
|Average Monthly Outgoing Voice Minutes per Subscriber(15) |  |                                          | 172        |   |      |   | 191        |      |  |   | 197        |   |  |      | 194        |   |  |   | 197        |  
|Average Monthly Revenue per Subscriber(16)                |  | W                                        | 36,400     |   |      | W | 38,383     |      |  | W | 39,739     |   |  | W    | 39,689     |   |  | W | 40,205     |  
|Average Monthly Churn Rate(17)                            |  |                                          | 1.4        | % |      |   | 1.4        | %    |  |   | 1.2        | % |  |      | 1.7        | % |  |   | 1.8        | %
|Digital Cell Sites(18)                                    |  |                                          | 6,056      |   |      |   | 7,384      |      |  |   | 8,309      |   |  |      | 9,458      |   |  |   | 10,142     |  






| |   |                                                                                                                                                         
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------
| | * | The conversion into Dollars was made at the rate of Won 1,010.0
    to US$1.00. See note 2(a) of the notes to our consolidated
    financial statements.



| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (1) | Includes revenues from SK Teletech Co., Ltd. of
    Won 702.4 billion for 2001, Won 534.0 billion for
    2002, Won 612.0 billion for 2003,
    Won 649.8 billion for 2004 and Won 294.6 billion
    for 2005 from the sale of digital handsets and Won
    1,339.9 billion for 2001, Won 1,043.2 billion for
    2002, Won 1,017.1 billion for 2003, Won
    849.4 billion for 2004 and Won 898.6 billion for 2005
    of interconnection revenue. Following our sale of a 60% equity
    interest in SK Teletech to Pantech & Curitel in
    July 2005, our equity interest in the company was reduced to
    29.1% (which subsequently became a 22.7% interest in Pantech
    following the merger of SK Teletech into Pantech in
    December 2005) and SK Teletech ceased to be our
    consolidated subsidiary. See Item 4B. 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.
    Consequently, the results of the paging business are no longer
    included in our revenues after such date.                                                                                                                                                                                                                                                                                                                                                                                                                             
|
| | (3) | For more information about our other revenue, see
    Item 5. Operating and Financial Review and
    Prospects and Item 4B. Business Overview.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|
| | (4) | Income per share of common stock is calculated by dividing net
    income by the weighted average number of shares outstanding
    during the period. Diluted net income per share of common stock
    is calculated by dividing adjusted net income by adjusted
    weighted average number of shares outstanding during the period,
    taking into account the dilutive effect of stock options in 2002
    and issuance of convertible bonds in 2004 and 2005.                                                                                                                                                                                                                                                                                                                                                                                                           
|
| | (5) | On January 1, 2002, we 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, our 2001 financial statements have been
    restated accordingly.                                                                                                                                                                                                                                                                                                                                                                                                                         
|
| | (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 1,326 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, Won 1,044 to US$1.00 as of
    December 31, 2004 and Won 1,013.0 to US$1.00 as of
    December 31, 2005, the rates of exchange permitted under
    Korean GAAP as of those dates. See note 2(w) of the notes
    to our consolidated financial statements.                                                                                                                                                                                                                                                                                                                                                

5



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| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (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.
|
| | (9) | Consists of investments in property, plant and equipment. Under
    U.S. GAAP, interest costs incurred during the period
    required to complete an asset or ready an asset for its intended
    use are capitalized based on the interest rates a company pays
    on its outstanding borrowings. Under Korean GAAP, beginning
    January 1, 2003, such interest costs are expensed as
    incurred. Through the end of 2002, the accounting treatment for
    capitalizing interest costs under Korean GAAP was consistent
    with that under U.S. GAAP.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      



|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(10) | Includes donations to Korean research institutes and educational
    organizations. See Item 5C. Research and Development,
    Patents and Licenses, etc..                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|    
|(11) | Population estimates based on historical data published by the
    National Statistical Office of Korea.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|    
|(12) | Wireless penetration is determined by dividing our subscribers
    by total estimated population, as of the end of the period.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|    
|(13) | Includes regular employees and temporary employees. See
    Item 6D. Employees. Includes 1,332 Shinsegi
    employees as of December 31, 2001.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|    
|(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 3,311,874 Shinsegi subscribers
    as of December 31, 2001.                                                                                                                                                                                                                                                                                                                                
|    
|(15) | 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 2001.                                                                                                                                                                                           
|    
|(16) | 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 45,441 for 2001,
    Won 43,958 for 2002, Won 44,546 for 2003, Won 43,542 for 2004
    and Won 44,167 for 2005. For information about the average
    monthly revenue per subscriber of SK Telecom and Shinsegi
    on a stand-alone basis, see Item 5A. Operating
    Results  Overview.
|    
|(17) | 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                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             

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| |                                                                                                                                                            
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------
| | includes subscribers who upgrade to CDMA lxRTT or CDMA 1xEV/
    DO-capable handsets by terminating their service and opening a
    new subscriber account.



|     |                                                                   
|---- | ------------------------------------------------------------------
|(18) | Includes 1,685 cell sites of Shinsegi as of December 31,
    2001.



|                              |  |                                              |         |   |      |   |         |      |  |   |         |   |  |      |         |   |      |   |         |   |  |     |         |  
|----------------------------- |  | -------------------------------------------- | ------- | - | ---- | - | ------- | ---- |  | - | ------- | - |  | ---- | ------- | - | ---- | - | ------- | - |  | --- | ------- | -
|                              |  | As of or for the Year Ended December 31,     |        
|                              |  |                                              |        
|                              |  | 2001                                         |         |   | 2002 |   |         | 2003 |  |   | 2004    |   |  | 2005 |         |   | 2005 |  
|                              |  |                                              |         |   |      |   |         |      |  |   |         |   |  |      |         |   |      |  
|                              |  | (In billions of won and millions of dollars) |        
|Net Income                    |  | W                                            | 1,111.6 |   |      | W | 1,301.1 |      |  | W | 2,062.7 |   |  | W    | 1,553.1 |   |      | W | 2,027.6 |   |  | US$ | 2,007.5 |  
|ADD: Interest income          |  |                                              | (101.8  | ) |      |   | (90.8   | )    |  |   | (93.9   | ) |  |      | (86.7   | ) |      |   | (62.6   | ) |  |     | (62.0   | )
|Interest expense              |  |                                              | 274.4   |   |      |   | 396.6   |      |  |   | 387.1   |   |  |      | 291.0   |   |      |   | 226.8   |   |  |     | 224.6   |  
|Taxes                         |  |                                              | 791.3   |   |      |   | 585.0   |      |  |   | 811.5   |   |  |      | 611.1   |   |      |   | 667.1   |   |  |     | 660.5   |  
|Depreciation and Amortization |  |                                              | 1,783.6 |   |      |   | 1,428.8 |      |  |   | 1,511.7 |   |  |      | 1,601.9 |   |      |   | 1,553.3 |   |  |     | 1,537.9 |  
|                              |  |                                              |         |   |      |   |         |      |  |   |         |   |  |      |         |   |      |  
|EBITDA                        |  | W                                            | 3,859.1 |   |      | W | 3,620.7 |      |  | W | 4,679.1 |   |  | W    | 3,970.4 |   |      | W | 4,412.2 |   |  | US$ | 4,368.5 |  
|                              |  |                                              |         |   |      |   |         |      |  |   |         |   |  |      |         |   |      |  








|                              |  |                                              |         |   |      |   |         |      |  |   |         |   |  |      |         |   |      |   |         |   |  |     |         |  
|----------------------------- |  | -------------------------------------------- | ------- | - | ---- | - | ------- | ---- |  | - | ------- | - |  | ---- | ------- | - | ---- | - | ------- | - |  | --- | ------- | -
|                              |  | As of or for the Year Ended December 31,     |        
|                              |  |                                              |        
|                              |  | 2001                                         |         |   | 2002 |   |         | 2003 |  |   | 2004    |   |  | 2005 |         |   | 2005 |  
|                              |  |                                              |         |   |      |   |         |      |  |   |         |   |  |      |         |   |      |  
|                              |  | (In billions of won and millions of dollars) |        
|Net Income                    |  | W                                            | 1,146.0 |   |      | W | 1,487.2 |      |  | W | 1,966.1 |   |  | W    | 1,491.5 |   |      | W | 1,873.0 |   |  | US$ | 1,854.5 |  
|ADD: Interest income          |  |                                              | (97.4   | ) |      |   | (86.0   | )    |  |   | (86.5   | ) |  |      | (80.5   | ) |      |   | (61.1   | ) |  |     | (60.5   | )
|Interest expense              |  |                                              | 273.9   |   |      |   | 311.1   |      |  |   | 391.5   |   |  |      | 303.4   |   |      |   | 253.5   |   |  |     | 251.0   |  
|Taxes                         |  |                                              | 850.3   |   |      |   | 698.5   |      |  |   | 789.0   |   |  |      | 629.8   |   |      |   | 693.3   |   |  |     | 686.4   |  
|Depreciation and Amortization |  |                                              | 1,759.6 |   |      |   | 1,543.3 |      |  |   | 1,646.3 |   |  |      | 1,741.6 |   |      |   | 1,675.5 |   |  |     | 1,658.9 |  
|                              |  |                                              |         |   |      |   |         |      |  |   |         |   |  |      |         |   |      |  
|EBITDA                        |  | W                                            | 3,932.4 |   |      | W | 3,954.1 |      |  | W | 4,706.4 |   |  | W    | 4,085.8 |   |      | W | 4,434.2 |   |  | US$ | 4,390.3 |  
|                              |  |                                              |         |   |      |   |         |      |  |   |         |   |  |      |         |   |      |  

Exchange Rates




|                        |  |           |       |         |  |      |       |     |  |  |       |  |  |  |       | 
|----------------------- |  | --------- | ----- | ------- |  | ---- | ----- | --- |  |  | ----- |  |  |  | ----- | 
|                        |  | At End    |       | Average |  |      |       |    
|Year Ended December 31, |  | of Period |       | Rate(1) |  | High |       | Low
|                        |  |           |       |         |  |      |       |    
|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 | 
|2005                    |  |           | 1,010 |         |  |      | 1,023 |     |  |  | 1,060 |  |  |  | 997   | 

7



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|                                  |  |          |       |     |  |  |     | 
|--------------------------------- |  | -------- | ----- | --- |  |  | --- | 
|Past Six Months                   |  | High     |       | Low
|                                  |  |          |       |    
|                                  |  | (Won per
|                                  |  | US$1.00)
|January 2006                      |  |          | 1,003 |     |  |  | 959 | 
|February 2006                     |  |          | 976   |     |  |  | 962 | 
|March 2006                        |  |          | 982   |     |  |  | 967 | 
|April 2006                        |  |          | 970   |     |  |  | 940 | 
|May 2006                          |  |          | 952   |     |  |  | 927 | 
|June 2006 (through June 26, 2006) |  |          | 962   |     |  |  | 943 | 






|    |                                                                                                                                                                                                                                                                                                                                   
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(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).






Item 3B.     Capitalization
and Indebtedness


Not applicable





Item 3C.     Reasons for the
Offer and Use of Proceeds


Not applicable





Item 3D.     Risk
Factors




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







8



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| |                                                                                                                                                                                                                                                                                    
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Inability to successfully implement or adapt our network
    and technology to meet the continuing technological advancements
    affecting the wireless industry will likely have a material
    adverse effect on our financial condition, results of operation
    and business.







9



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| |                                                                                                                                                                                                                            
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | HSDPA technology may require significant capital and other
    expenditures for implementation which we may not recoup and such
    technology may be difficult to integrate with our existing
    technology and business.









10



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##### Table of Contents





| |                                                                                                                                                                   
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Our growth strategy calls for 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, we are unlikely to maintain our subscriber
    growth rate, which could adversely affect our results of
    operations.





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





11



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##### Table of Contents





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







| |                                                                                                                                                                                       
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Termination or impairment of our relationship with a small
    number of key suppliers for network equipment and for lease
    lines 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.



12



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13



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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.





14



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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.







15



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| |                                                                                                                                                                                                          
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Concerns that radio frequency emissions may be linked to
    various health concerns could adversely affect our business and
    we could be subject to litigation relating to these health
    concerns.





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









| |   |                                                                                                                                                                               
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | financial problems or lack of progress in restructuring of
    chaebols, or Korean conglomerates, other large troubled
    companies, their suppliers or the financial sector;
|
| |  | loss of investor confidence arising from corporate accounting
    irregularities and corporate governance issues of certain
    chaebols;                                     
|
| |  | a slowdown in consumer spending;                                                                                                                                              
|
| |  | adverse changes or volatility in foreign currency reserve
    levels, commodity prices, exchange rates, interest rates or
    stock markets;                                  

16



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| |   |                                                                                                                                                                                                                                                                                            
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | adverse developments in the economies of countries that are
    important export markets for Korea, such as the United States,
    Japan and China, or in emerging market economies in Asia or
    elsewhere;                                                                              
|
| |  | the continued emergence of the Chinese economy, 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 manufacturing base from
    Korea to China);
|
| |  | social and labor unrest;                                                                                                                                                                                                                                                                   
|
| |  | substantial decrease in market price of the Korean real estate
    market;                                                                                                                                                                                                                 
|
| |  | a decrease in tax revenues and a substantial increase in the
    Korean governments expenditures for unemployment
    compensation and other social programs that, together, would
    lead to an increased government budget deficit;                                                    
|
| |  | geo-political uncertainty and risk of further attacks by
    terrorist groups around the world;                                                                                                                                                                                            
|
| |  | the recurrence of SARS or avian flu in Asia and other parts of
    the world;                                                                                                                                                                                                              
|
| |  | deterioration in economic or diplomatic relations between Korea
    and its trading partners or allies, including deterioration
    resulting from trade disputes or disagreements in foreign policy;                                                                                      
|
| |  | political uncertainty or increasing strife among or within
    political parties in Korea;                                                                                                                                                                                                 
|
| |  | hostilities involving oil producing countries in the Middle East
    and any material disruption in the supply of oil or increase in
    the price of oil; and                                                                                                                             
|
| |  | an increase in the level of tension or an outbreak of
    hostilities between North Korea and Korea or the United States.                                                                                                                                                                  



| |                                                                                                                                                                                                                           
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 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 9.6% of our total consolidated
    long-term debt, including current portion, as of
    December 31, 2005; 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.                                                                                                                              





| |   |                                                                                                                                                                                                                                        
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | the amounts a registered holder or beneficial owner of ADSs will
    receive from the ADR depositary in respect of 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.



17



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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.





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| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 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 sell common stock in
    order to settle the converting holders conversion rights
    in cash in lieu of delivering common stock to them, and these
    sales might adversely affect the market price of our common
    stock or ADRs.





| |                                                                                                                                                                                  
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 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.



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





| |                                                                                                                                                          
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------
| | 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.



20



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









| |                                                                                              
| | ---------------------------------------------------------------------------------------------
| | A holder of our ADSs may not be able to enforce a judgment
    of a foreign court against us.





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



21



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Item 4.     INFORMATION ON
THE COMPANY





Item 4A.     History and
Development of the Company


















22



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82-2


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, including in
    connection with our development of new and improved wireless
    technologies. We have completed expanding the geographic
    coverage and subscriber capacity of our existing CDMA 1xRTT and
    CDMA 1xEV/ DO networks and are currently upgrading our existing
    WCDMA network to support HSDPA service, as well as expanding an
    HSPDA-ready version of our WCDMA network nationwide. In
    addition, we began to offer WiBro service to limited areas
    of metropolitan Seoul in June 2006, and intend to continue to
    expand our WiBro service coverage area. We believe we are a
    leader in the development and implementation of wireless
    technologies in Korea and that convergence among communications
    technologies, as well as between telecommunications and other
    industries, creates growth opportunities for incumbent
    telecommunications service providers, like us, whose existing
    infrastructure and know-how will provide a competitive
    advantage. We also pursue a research and development program
    designed to allow us to implement new wireless technologies as
    market opportunities arise. As a part of such program, we
    operate a network research and development center which is
    focused on wireless network design, digital cellular
    technologies and wireless telecommunications applications.
|
| |  | Retain and capitalize on our large, high-quality wireless
    subscriber base. With approximately 19.8 million
    subscribers as of April 30, 2006, 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
    Internet-based applications, at higher speeds than previously
    available.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|
| |  | Offer a broad range of new and innovative Wireless Internet
    contents and services. Through our integrated wireless and
    on-line portal, NATE, we plan to continue expanding the range of
    our Wireless Internet contents and services, with a view to
    increasing revenue from these services to complement our core
    cellular revenues. Our strategy includes the introduction of
    sophisticated multimedia services (such as June, a premium
    wireless data service that provides streaming multimedia video
    content through our                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                

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| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |   | CDMA 1xEV/ DO and HSDPA technologies, as well as MelOn, our
    music portal service, GXG, our mobile gaming portal, and Cizle,
    our wireless Internet movie portal); mobile commerce services
    (such as Moneta, a wireless credit and payment system);
    community portal and mobile community portal services (such as
    Mobile Cyworld, which allows subscribers to access Cyworld, our
    on-line community portal service, using their cellular phone);
    and mobile finance services (such as M BANK, M-Stock and Moneta
    Card) that can be accessed using handsets and other devices,
    including personal computers, personal digital assistants and
    vehicle mounted terminals.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|
| |  | Create new opportunities that arise from an increasingly
    convergent and ubiquitous era in mobile communications,
    including by pioneering new businesses. We seek to offer our
    customers a variety of innovative convergent
    services that create value and convenience for our customers.
    For example, we have launched new services, such as Telematics,
    Digital Home and mobile banking, that provide access to content
    and services previously available only through traditional media
    or requiring direct personal interface. In particular, we are
    focusing on new businesses that provide synergies with our
    existing services. For example, in May 2005, TU Media Corp., one
    of our affiliates, successfully launched satellite DMB service,
    which provides broadcasting of multimedia content by satellite
    to various portable and handheld devices.                                                                                                                                                                                                                                                                                                                                                              
|
| |  | Continue to seek opportunities in overseas markets. We
    continue to seek opportunities into various overseas markets,
    particularly to Asia. In March 2005, we established a joint
    venture with EarthLink, Inc., the third largest Internet service
    provider in the United States, and, in May 2006 we launched our
    Mobile Virtual Network Operator, or MVNO, service, under the
    brand name HELIO, to provide wireless voice and data
    services across the United States. We have also been providing
    CDMA cellular service, under the brand name, S-Fone,
    in Vietnam since 2003 and plan to expand our network coverage to
    all of Vietnam. In February 2004, through the launch of a joint
    venture company with China Unicom, we also began extending our
    wireless Internet service to China. In addition, in June 2006,
    our board of directors approved plans to subscribe for up to
    US$1 billion of convertible bonds issued by China Unicom
    convertible into 899,745,075 common shares of China Unicom. We
    expect the subscription to be consummated in July 2006. In the
    event all of such convertible bonds are converted into common
    shares, our equity interest in China Unicom would be 6.67%.

Merger with Shinsegi










| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Decommissioned Shinsegis former network and transferred
    Shinsegis 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 do
    not have to purchase new handsets, are allowed to use the same
    mobile telephone numbers and have 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.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|
| |  | Redeployed a portion of Shinsegis former network equipment
    to SK Telecoms CDMA network or sold it to wireless
    operators outside of Korea. The remainder of Shinsegis
    network equipment was discarded and written off and we recorded
    an impairment loss of Won 185.8 billion in 2002.                                                                                                                                                                                                                                                                                            

24



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Korean Telecommunications Industry














25



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|                                        |  |                                                   |        |  |      |  |        |      |  |  |        |  |  |      |        |  |  |  |        | 
|--------------------------------------- |  | ------------------------------------------------- | ------ |  | ---- |  | ------ | ---- |  |  | ------ |  |  | ---- | ------ |  |  |  | ------ | 
|                                        |  | As of December 31,                                |       
|                                        |  |                                                   |       
|                                        |  | 2001                                              |        |  | 2002 |  |        | 2003 |  |  | 2004   |  |  | 2005 |       
|                                        |  |                                                   |        |  |      |  |        |      |  |  |        |  |  |      |       
|                                        |  | (In thousands, except for per population amounts) |       
|Population of Korea(1)                  |  |                                                   | 47,354 |  |      |  | 47,615 |      |  |  | 47,849 |  |  |      | 48,082 |  |  |  | 48,294 | 
|Wireless Subscribers(2)                 |  |                                                   | 29,046 |  |      |  | 32,342 |      |  |  | 33,592 |  |  |      | 36,586 |  |  |  | 38,342 | 
|Wireless Subscribers per 100 Population |  |                                                   | 61.3   |  |      |  | 67.9   |      |  |  | 70.2   |  |  |      | 76.1   |  |  |  | 79.4   | 
|Telephone Lines in Service(2)           |  |                                                   | 22,725 |  |      |  | 23,490 |      |  |  | 22,877 |  |  |      | 22,871 |  |  |  | 22,920 | 
|Telephone Lines per 100 Population      |  |                                                   | 48.0   |  |      |  | 49.3   |      |  |  | 47.8   |  |  |      | 47.6   |  |  |  | 47.5   | 






|    |                                             
|--- | --------------------------------------------
|(1) | Source: National Statistical Office of Korea
|(2) | Source: MIC                                 

















|    |                                                                                    
|--- | -----------------------------------------------------------------------------------
|(1) | Percentages may differ depending on method selected for
    determining population.



26



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|                                     |  |                |        |   |      |  |        |      |  |  |        |   |  |      |        |   |  |  |        |  
|------------------------------------ |  | -------------- | ------ | - | ---- |  | ------ | ---- |  |  | ------ | - |  | ---- | ------ | - |  |  | ------ | -
|                                     |  | 2001           |        |   | 2002 |  |        | 2003 |  |  | 2004   |   |  | 2005 |       
|                                     |  |                |        |   |      |  |        |      |  |  |        |   |  |      |       
|                                     |  | (In thousands) |       
|Wireless Internet Enabled Handsets   |  |                | 23,874 |   |      |  | 29,085 |      |  |  | 31,431 |   |  |      | 35,016 |   |  |  | 37,202 |  
|WAP/ ME Type                         |  |                | 18,190 |   |      |  | 25,981 |      |  |  | 29,804 |   |  |      | 34,220 |   |  |  | 36,713 |  
|I-SMS Type                           |  |                | 5,684  |   |      |  | 3,104  |      |  |  | 1,627  |   |  |      | 797    |   |  |  | 489    |  
|Total Number of Wireless Subscribers |  |                | 29,046 |   |      |  | 32,342 |      |  |  | 33,592 |   |  |      | 36,586 |   |  |  | 38,342 |  
|Penetration of Advanced Handsets     |  |                | 82.2   | % |      |  | 89.9   | %    |  |  | 93.6   | % |  |      | 95.7   | % |  |  | 97.0   | %








|                                   |  |         |        |  |         |  |        |         |  |  |         |  |  |         |        |  |  |  |        | 
|---------------------------------- |  | ------- | ------ |  | ------- |  | ------ | ------- |  |  | ------- |  |  | ------- | ------ |  |  |  | ------ | 
|                                   |  | 2001.12 |        |  | 2002.12 |  |        | 2003.12 |  |  | 2004.12 |  |  | 2005.12 |       
|                                   |  |         |        |  |         |  |        |         |  |  |         |  |  |         |       
|Number of Internet Users(1)        |  |         | 24,380 |  |         |  | 26,270 |         |  |  | 29,220  |  |  |         | 31,580 |  |  |  | 33,010 | 
|Number of Broadband Subscribers(2) |  |         | 7,806  |  |         |  | 10,405 |         |  |  | 11,172  |  |  |         | 11,921 |  |  |  | 12,191 | 






|    |                                                                                                                                               
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Source: Korea Network Information Center (KRNIC).                                                                                             
|   
|(2) | Source: MIC. Broadband service includes xDSL (Digital Subscriber
    Line), Cable Modem, Apartment LAN (Local Area Network) and
    Satellite.






|         |                  
|-------- | -----------------
|Item 4B. | Business Overview

Overview






| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Cellular services  we provide digital cellular
    services to our subscribers using CDMA (code division multiple
    access) technology, with our network covering approximately 99%
    of the Korean population;                                                                                                                                                                                                                                                         
|
| |  | Wireless Internet services  under our
    NATE brand name, we allow our wireless subscribers
    to access various websites designed for cellular use, such as
    access to entertainment-related contents and services and
    on-line financial services; and                                                                                                                                                                                                          
|
| |  | Digital convergence and new businesses  we
    have pioneered new services that reflect the growing convergence
    between the telecommunications sector and other industries,
    including our provision of satellite DMB service, which enables
    satellite broadcasting to mobile devices; telematics service,
    which makes use of GPS technology; and our Digital
    Home service, which brings home maintenance and security
    into the mobile digital era.





27



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##### Table of Contents







Cellular Services














| |   |                                                                                                                                                                                           
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Call Keeper service, which provides a record of missed calls in
    the event a subscribers mobile phone is engaged or
    switched off;                                                 
|
| |  | COLORing service, which plays a ring back melody in
    lieu of a conventional dial tone when callers dial a COLORing
    subscribers mobile phone;                                    
|
| |  | Auto COLORing service, which periodically changes the default
    ring-back melody according to the subscribers music
    category selection; and                                        
|
| |  | Perfect Call service, which combines Call Keeper service with a
    new service that alerts subscribers when a dialed number that
    was engaged when first dialed, is no longer engaged.

28



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Wireless Internet Services




e-mail




| |           
| | ----------
| | Multimedia





| |                     
| | --------------------
| | Music Portal Service





29



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##### Table of Contents







| |                         
| | ------------------------
| | Community Portal Service





| |                                
| | -------------------------------
| | Wireless Entertainment Services







| |           
| | ----------
| | M-Commerce







M-Bank,


30



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e-mail






Digital Convergence and New Businesses






| |              
| | -------------
| | Satellite DMB





| |                   
| | ------------------
| | Telematics Service



31



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##### Table of Contents









| |             
| | ------------
| | Digital Home



Global Business




| |                                                                                                              
| | -------------------------------------------------------------------------------------------------------------
| | Provision of Wireless Internet Platforms and Cellular
    Network Solutions to Foreign CDMA Network Operators





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



United States.


32



---



##### Table of Contents







China.




Vietnam. S-Fone


Mongolia.




Other Products and Services




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



33



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##### Table of Contents







| |                               
| | ------------------------------
| | International Calling Services

Web-to




Revenues, Rates and Facility Deposits




34



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##### Table of Contents





|                                          |  |                                           |          |  |      |   |          |      |  |   |          | 
|----------------------------------------- |  | ----------------------------------------- | -------- |  | ---- | - | -------- | ---- |  | - | -------- | 
|                                          |  | As of and for the Year Ended December 31, |         
|                                          |  |                                           |         
|                                          |  | 2003                                      |          |  | 2004 |   |          | 2005 | 
|                                          |  |                                           |          |  |      |   |          |      | 
|                                          |  | (In billions of won)                      |         
|Initial Connection Fees                   |  | W                                         | 176.6    |  |      | W | 198.4    |      |  | W | 232.3    | 
|Monthly Access Fees                       |  |                                           | 3,132.2  |  |      |   | 3,266.1  |      |  |   | 3,365.1  | 
|Usage Charges                             |  |                                           | 3,615.1  |  |      |   | 5,300.7  |      |  |   | 5,538.8  | 
|Interconnection Revenue                   |  |                                           | 1,017.1  |  |      |   | 849.4    |      |  |   | 898.6    | 
|Revenue from Sales of Digital Handsets(1) |  |                                           | 612.0    |  |      |   | 649.8    |      |  |   | 294.6    | 
|Other Revenue(2)                          |  |                                           | 1,538.8  |  |      |   | 33.2     |      |  |   | 32.5     | 
|                                          |  |                                           |          |  |      |   |          |      | 
|Total                                     |  | W                                         | 10,091.8 |  |      | W | 10,297.6 |      |  | W | 10,361.9 | 
|                                          |  |                                           |          |  |      |   |          |      | 
|Additional Facility Deposits              |  | W                                         | 5.0      |  |      | W | 31.8     |      |  | W | 3.4      | 
|Refunded Facility Deposits                |  |                                           | 7.7      |  |      |   | 44.6     |      |  |   | 11.0     | 
|Facility Deposits at Period End           |  |                                           | 44.2     |  |      |   | 31.4     |      |  |   | 23.8     | 






|    |                                                                                                                                                                     
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Until its sale to Pantech & Curitel in July 2005, our
    revenue from handset sales consisted of sales by our former
    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.













35



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|                                       |  |                    |        |                   |          |            |             |                  |                |         |                     |                  |         |                  |    |  |  |   |    | 
|-------------------------------------- |  | ------------------ | ------ | ----------------- | -------- | ---------- | ----------- | ---------------- | -------------- | ------- | ------------------- | ---------------- | ------- | ---------------- | -- |  |  | - | -- | 
|                                       |  |                    |        |                   |          | Peak Usage |             |                  | Off-Peak Usage |         |                     | Night-Time Usage |        
|                                       |  |                    |        | Included Airtime/ |          |            | Charges     |                  |                | Charges |                     |                  | Charges |                 
|                                       |  | Monthly Access Fee |        |                   | Discount |            |             | (Per 10 Seconds) |                |         | (Per 10 Seconds)(2) |                  |         | (Per 10 Seconds) |   
|                                       |  |                    |        |                   |          |            |             |                  |                |         |                     |                  |         |                  |   
|Standard                               |  |                    |        |                   |          |            |             |                  |                |         |                     |                  |         |                  |    |  |  |   |    | 
|Regular                                |  | W                  | 13,000 |                   |          |            | 10 minutes  |                  |                | W       | 20                  |                  |         | W                | 13 |  |  | W | 10 | 
|Slim                                   |  |                    | 12,500 |                   |          |            |             |                  |                |         | 19                  |                  |         |                  | 19 |  |  |   | 19 | 
|Family                                 |  |                    | 13,000 |                   |          |            | 5 minutes   |                  |                |         | 18                  |                  |         |                  | 12 |  |  |   | 9  | 
|Designated Number Discount             |  |                    | 16,000 |                   |          |            |             |                  |                |         | 20                  |                  |         |                  | 20 |  |  |   | 20 | 
|Three-Three(3)                         |  |                    | 14,500 |                   |          |            |             |                  |                |         |                    |                  |         |                  |   |  |  |   |   | 
|Time                                   |  |                    | 16,000 |                   |          |            | 7 minutes   |                  |                |         | 21                  |                  |         |                  | 17 |  |  |   | 12 | 
|Pink Couple                            |  |                    | 22,000 |                   |          |            | 500 minutes |                  |                |         | 20                  |                  |         |                  | 20 |  |  |   | 20 | 
|Silver(4)                              |  |                    | 11,000 |                   |          |            | 30 minutes  |                  |                |         | 38                  |                  |         |                  | 38 |  |  |   | 38 | 
|i-Kids(5)                              |  |                    | 11,000 |                   |          |            | 70 minutes  |                  |                |         | 20                  |                  |         |                  | 20 |  |  |   | 20 | 
|Welfare 160/220(6)                     |  |                    | 16,000 |                   |          |            | Won 10,000  |                  |                |         | 30                  |                  |         |                  | 30 |  |  |   | 30 | 
|                                       |  |                    | 22,000 |                   |          |            | Won 22,000  |                  |                |         | 30                  |                  |         |                  | 30 |  |  |   | 30 | 
|TTL Plans                              |  |                    |        |                   |          |            |             |                  |                |         |                     |                  |         |                  |    |  |  |   |    | 
|Standard                               |  |                    | 15,000 |                   |          |            |             |                  |                |         | 20                  |                  |         |                  | 20 |  |  |   | 20 | 
|SMS                                    |  |                    | 25,000 |                   |          |            |             |                  |                |         | 19                  |                  |         |                  | 19 |  |  |   | 19 | 
|Regional                               |  |                    | 15,500 |                   |          |            | 7 minutes   |                  |                |         | 21                  |                  |         |                  | 16 |  |  |   | 9  | 
|Designated Number                      |  |                    | 16,000 |                   |          |            |             |                  |                |         | 20                  |                  |         |                  | 20 |  |  |   | 20 | 
|Pink Couple                            |  |                    | 22,000 |                   |          |            |             |                  |                |         | 20                  |                  |         |                  | 20 |  |  |   | 20 | 
|Couple                                 |  |                    | 16,500 |                   |          |            | 150 minutes |                  |                |         | 20                  |                  |         |                  | 20 |  |  |   | 9  | 
|Ting Plans                             |  |                    |        |                   |          |            |             |                  |                |         |                     |                  |         |                  |    |  |  |   |    | 
|Text Premium                           |  |                    | 26,000 |                   |          |            |             |                  |                |         | 30                  |                  |         |                  | 30 |  |  |   | 30 | 
|Buddy                                  |  |                    | 15,000 |                   |          |            | 70 minutes  |                  |                |         |                     |                  |         |                  |    |  |  |   |    | 
|Ting 500                               |  |                    | 15,000 |                   |          |            | 60 minutes  |                  |                |         | 12                  |                  |         |                  | 12 |  |  |   | 12 | 
|Ting 100 (Normal Rate)                 |  |                    | 13,500 |                   |          |            | 60 minutes  |                  |                |         | 35                  |                  |         |                  | 18 |  |  |   | 9  | 
|Ting 100 (Vacation Rate)               |  |                    | 13,500 |                   |          |            | 60 minutes  |                  |                |         | 24                  |                  |         |                  | 24 |  |  |   | 9  | 
|Ting Start                             |  |                    | 18,000 |                   |          |            |             |                  |                |         | 30                  |                  |         |                  | 30 |  |  |   | 30 | 
|Data Free Plan(7)                      |  |                    | 26,000 |                   |          |            |             |                  |                |         |                    |                  |         |                  |   |  |  |   |   | 
|Free Plans                           |  |                    |        |                   |          |            |             |                  |                |         |                     |                  |         |                  |    |  |  |   |    | 
|Free Holiday(8)                        |  |                    |       |                   |          |            |             |                  |                |         |                    |                  |         |                  |   |  |  |   |   | 
|Free Everyday(9)                       |  |                    |       |                   |          |            |             |                  |                |         |                    |                  |         |                  |   |  |  |   |   | 
|Free Plan for Calls Over 3 Minutes(10) |  |                    |       |                   |          |            |             |                  |                |         |                    |                  |         |                  |   |  |  |   |   | 






| |     |                                                                                                                                                                                                                               
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (1) | Discounts may include free text messages, ring tone downloads,
    coloring 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%

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| |     |                                                                                                                                                                                                                   
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     | 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 over 5 years.                              
|
| | (3) | Under this plan, for the first three minutes of airtime we
    charge Won 20 per 10 seconds; we offer the fourth to sixth
    minutes free of charge; and charge Won 15 per 10 seconds
    for airtime thereafter.
|
| | (4) | Subscribers must be 65 years old or older and each
    subscriber is limited to enrolling in one Silver Plan.                                                                                                     
|
| | (5) | Subscribers must be 12 years old or younger and each
    subscriber is limited to enrolling one i-Kid Plan.                                                                                                       
|
| | (6) | This plan is limited to mentally or physically challenged
    subscribers.                                                                                                                                        
|
| | (7) | Includes unlimited use of data service. This plan is offered
    from September 30, 2005 through September 30, 2006.                                                                                              
|
| | (8) | 11 hours of airtime on Sundays and public holidays, for an
    additional Won 10,000 per month.                                                                                                                   
|
| | (9) | 11 hours of airtime in excess of the average number of
    minutes used during the previous two months, for an additional
    Won 15,000 per month.                                                               



|     |                                                                                                                            
|---- | ---------------------------------------------------------------------------------------------------------------------------
|(10) | 11 hours of domestic airtime for any airtime exceeding the
    first three minutes, for an additional Won 15,000 per month.











37



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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;                                                                                                    
|
| |  | an effective marketing strategy;                                                                                                                                                     
|
| |  | our focus on customer service;                                                                                                                                                       
|
| |  | the introduction of new, value-added services, such as voicemail
    services, call-forwarding, caller ID, three-way calling and
    Wireless Internet services provided by NATE; and
|
| |  | our acquisition of Shinsegi.                                                                                                                                                         



|                              |  |                                          |            |      |  |      |            |   |  |  |            |  
|----------------------------- |  | ---------------------------------------- | ---------- | ---- |  | ---- | ---------- | - |  |  | ---------- | -
|                              |  | As of or for the Year Ended December 31,
|                              |  |                                         
|                              |  | 2003                                     |            | 2004 |  | 2005
|                              |  |                                          |            |      |  |     
|Subscribers                   |  |                                          | 18,313,153 |      |  |      | 18,783,338 |   |  |  | 19,530,117 |  
|Subscribers Growth Rate       |  |                                          | 6.4        | %    |  |      | 2.6        | % |  |  | 4.0        | %
|Activations                   |  |                                          | 3,688,312  |      |  |      | 4,407,087  |   |  |  | 5,057,176  |  
|Deactivations                 |  |                                          | 2,594,721  |      |  |      | 3,936,884  |   |  |  | 4,310,397  |  
|Average Monthly Churn Rate(1) |  |                                          | 1.2        | %    |  |      | 1.7        | % |  |  | 1.8        | %






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(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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|       |                |         |  |         |           |  |  |         |           |  |         |         |           |         |  |         |           |  |  |         |         |  |  |         |         |  |  |           |            | 
|------ | -------------- | ------- |  | ------- | --------- |  |  | ------- | --------- |  | ------- | ------- | --------- | ------- |  | ------- | --------- |  |  | ------- | ------- |  |  | ------- | ------- |  |  | --------- | ---------- | 
|Period |                | SKT→KTF |  |         | SKT→LGT   |  |  | KTF→SKT |           |  | KTF→LGT |         |           | LGT→SKT |  |         | LGT→KTF   |  |  | Total   |        
|       |                |         |  |         |           |  |  |         |           |  |         |         |           |         |  |         |           |  |  |         |        
|2004   |                |         |  |         |           |  |  |         |           |  |         |         |           |         |  |         |           |  |  |         |         |  |  |         |         |  |  |          
|       | First Quarter  |         |  | 417,212 |           |  |  | 286,163 |           |  |         |        |           |         |  |        |           |  |  |        |         |  |  |        |         |  |  | 703,375   |           
|       | Second Quarter |         |  | 444,225 |           |  |  | 287,660 |           |  |         |        |           |         |  |        |           |  |  |        |         |  |  |        |         |  |  | 731,885   |           
|       | Third Quarter  |         |  | 173,384 |           |  |  | 133,315 |           |  |         | 351,238 |           |         |  | 109,223 |           |  |  |        |         |  |  |        |         |  |  | 767,160   |           
|       | Fourth Quarter |         |  | 236,251 |           |  |  | 149,939 |           |  |         | 216,175 |           |         |  | 133,276 |           |  |  |        |         |  |  |        |         |  |  | 735,641   |           
|2005   |                |         |  |         |           |  |  |         |           |  |         |         |           |         |  |         |           |  |  |         |         |  |  |         |         |  |  |          
|       | First Quarter  |         |  | 391,386 |           |  |  | 148,486 |           |  |         | 354,672 |           |         |  | 156,394 |           |  |  | 213,179 |         |  |  | 220,322 |         |  |  | 1,484,439 |           
|       | Second Quarter |         |  | 355,300 |           |  |  | 178,550 |           |  |         | 372,621 |           |         |  | 170,378 |           |  |  | 159,662 |         |  |  | 131,246 |         |  |  | 1,367,757 |           
|       | Third Quarter  |         |  | 395,070 |           |  |  | 170,604 |           |  |         | 392,104 |           |         |  | 154,723 |           |  |  | 161,308 |         |  |  | 128,472 |         |  |  | 1,402,281 |           
|       | Fourth Quarter |         |  | 344,941 |           |  |  | 178,560 |           |  |         | 367,998 |           |         |  | 164,114 |           |  |  | 149,887 |         |  |  | 112,711 |         |  |  | 1,318,211 |           
|2006   |                |         |  |         |           |  |  |         |           |  |         |         |           |         |  |         |           |  |  |         |         |  |  |         |         |  |  |          
|       | January        |         |  | 155,588 |           |  |  | 60,465  |           |  |         | 154,166 |           |         |  | 60,741  |           |  |  | 63,112  |         |  |  | 58,552  |         |  |  | 552,624   |           
|       | February       |         |  | 164,413 |           |  |  | 62,672  |           |  |         | 166,271 |           |         |  | 67,880  |           |  |  | 60,338  |         |  |  | 61,534  |         |  |  | 583,108   |           
|       | March          |         |  | 172,963 |           |  |  | 59,056  |           |  |         | 165,979 |           |         |  | 62,168  |           |  |  | 60,016  |         |  |  | 65,694  |         |  |  | 585,876   |           
|       | April          |         |  | 81,071  |           |  |  | 37,869  |           |  |         | 91,112  |           |         |  | 35,164  |           |  |  | 41,186  |         |  |  | 34,884  |         |  |  | 321,286   |           
|       |                |         |  |         |           |  |  |         |           |  |         |         |           |         |  |         |           |  |  |         |        
|       |                | Total   |  |         | 3,331,804 |  |  |         | 1,753,339 |  |         |         | 2,632,336 |         |  |         | 1,114,061 |  |  |         | 908,688 |  |  |         | 813,415 |  |  |           | 10,553,643 | 
|       |                |         |  |         |           |  |  |         |           |  |         |         |           |         |  |         |           |  |  |         |        



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|       |                |                          |  |            |  |             |  |            |   |             |  |            |  |  |  |      |   |  |  |         |  |  |  |      |  
|------ | -------------- | ------------------------ |  | ---------- |  | ----------- |  | ---------- | - | ----------- |  | ---------- |  |  |  | ---- | - |  |  | ------- |  |  |  | ---- | -
|       |                | New Wireless Subscribers
|       |                |                         
|       |                | SK Telecom               |  | KTF        |  | LGT        
|       |                |                          |  |            |  |            
|       |                | Number of                |  | Percentage |  | Number of   |  | Percentage |   | Number of   |  | Percentage
|Period |                | Subscribers              |  | of Total   |  | Subscribers |  | of Total   |   | Subscribers |  | of Total  
|       |                |                          |  |            |  |             |  |            |   |             |  |           
|2004   |                |                          |  |            |  |             |  |            |   |             |  |            |  |  |  |      |   |  |  |         |  |  |  |     
|       | First Quarter  |                          |  | 1,210,435  |  |             |  | 41.5       | % |             |  | 1,060,250  |  |  |  | 36.4 | % |  |  | 644,709 |  |  |  | 22.1 | %
|       | Second Quarter |                          |  | 1,276,659  |  |             |  | 44.3       | % |             |  | 989,318    |  |  |  | 34.4 | % |  |  | 613,341 |  |  |  | 21.3 | %
|       | Third Quarter  |                          |  | 547,146    |  |             |  | 39.4       | % |             |  | 501,154    |  |  |  | 36.1 | % |  |  | 341,810 |  |  |  | 24.6 | %
|       | Fourth Quarter |                          |  | 795,359    |  |             |  | 45.9       | % |             |  | 552,618    |  |  |  | 31.9 | % |  |  | 384,825 |  |  |  | 22.2 | %
|2005   |                |                          |  |            |  |             |  |            |   |             |  |            |  |  |  |      |   |  |  |         |  |  |  |     
|       | First Quarter  |                          |  | 739,056    |  |             |  | 42.3       | % |             |  | 670,187    |  |  |  | 38.3 | % |  |  | 338,911 |  |  |  | 19.4 | %
|       | Second Quarter |                          |  | 713,151    |  |             |  | 46.2       | % |             |  | 516,628    |  |  |  | 33.4 | % |  |  | 314,811 |  |  |  | 20.4 | %
|       | Third Quarter  |                          |  | 707,228    |  |             |  | 43.1       | % |             |  | 607,024    |  |  |  | 37.0 | % |  |  | 328,133 |  |  |  | 20.0 | %
|       | Fourth Quarter |                          |  | 662,731    |  |             |  | 42.1       | % |             |  | 528,244    |  |  |  | 33.6 | % |  |  | 381,800 |  |  |  | 24.3 | %
|2006   |                |                          |  |            |  |             |  |            |   |             |  |            |  |  |  |      |   |  |  |         |  |  |  |     
|       | January        |                          |  | 245,324    |  |             |  | 43.9       | % |             |  | 186,804    |  |  |  | 33.5 | % |  |  | 126,092 |  |  |  | 22.6 | %
|       | February       |                          |  | 262,623    |  |             |  | 45.4       | % |             |  | 191,535    |  |  |  | 33.1 | % |  |  | 124,525 |  |  |  | 21.5 | %
|       | March          |                          |  | 250,407    |  |             |  | 46.0       | % |             |  | 171,461    |  |  |  | 31.5 | % |  |  | 122,587 |  |  |  | 22.5 | %
|       | April          |                          |  | 164,076    |  |             |  | 44.5       | % |             |  | 118,983    |  |  |  | 32.2 | % |  |  | 85,964  |  |  |  | 23.3 | %
|       | May            |                          |  | 196,569    |  |             |  | 43.4       | % |             |  | 140,814    |  |  |  | 31.1 | % |  |  | 115,273 |  |  |  | 25.5 | %

Marketing and Service Distribution






011e-station.co.kr,




40



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Interconnection






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

41



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land-to






| |               
| | --------------
| | Domestic Calls



Wireless-to


Fixed-line-to-Wireless. -line-to




Wireless-to wireless-to


42



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##### Table of Contents





| |                    
| | -------------------
| | International Calls





| |                                   
| | ----------------------------------
| | International Roaming Arrangements



Digital Cellular Network






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







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





43



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##### Table of Contents







| |              
| | -------------
| | WCDMA Network







| |      
| | -----
| | WiBro





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

44



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|                                                      |  |            |       |           |          |  |    | 
|----------------------------------------------------- |  | ---------- | ----- | --------- | -------- |  | -- | 
|                                                      |  |            |       | Switching |         
|                                                      |  | Cell Sites |       |           | Stations | 
|                                                      |  |            |       |           |          | 
|CDMA Network (excluding CDMA lxRTT and CDMA 1xEV/ DO) |  |            | 4.878 |           |          |  | 55 | 
|CDMA 1xRTT Network and CDMA 1xEV/ DO                  |  |            | 3.718 |           |          |  | 60 | 
|WCDMA                                                 |  |            | 1.546 |           |          |  | 6  | 
|WiBro(1)                                              |  |            |      |           |          |  |   | 






|    |                                             
|--- | --------------------------------------------
|(1) | We first launched WiBro service in May 2006.







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 22.4 billion as
    of December 31, 2005. Such companies develop technology and
    content for use in our fixed-line and Wireless Internet
    businesses and help enable us to further develop of our
    multimedia platforms and networks.                                                                                                                                                                                                                                                                                               
|
| |  | Joint Ventures. Pursuant to an agreement entered into on
    March 20, 2003, we established UNISK, a joint venture
    company with China Unicom in December 2003. See
     Global Business  Overseas
    Operations. 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 joint development
    of a Mobile Payment Service by combining our Nemo with
    Alcatels Prepayment Instant Billing System.

45



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| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Mobile Broadcasting Corporation. In September 2003, we
    entered into an agreement with Mobile Broadcasting Corporation,
    or MBCO, a wireless multi-media company in Japan, for the
    purpose 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 has
    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 96.9 billion. As of
    December 31, 2005, we had 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, the MIC assigned us
    a 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. As of April 30, 2006, TU Media had
    over 500,000 subscribers. See  Multimedia.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|
| |  | Mobile Data and Digital Content Market. In order to
    generate new revenue from the growing mobile data and digital
    content market, we plan to increase our investment in the
    entertainment sector, particularly in music and movies. 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 investments in various content providers. In March 2005,
    we acquired 8 million shares, or 21.7% equity interest in
    iHQ Inc., for Won 14.46 billion, with an option to
    purchase 5 million additional shares from
    Mr. Hun-Tak Jeong, a majority shareholder of iHQ Inc. iHQ
    Inc. is an entertainment management firm producing films,
    managing entertainers and operating on-line game services. We
    exercised the option to purchase 5 million shares of
    iHQ on April 26, 2006, which purchase is expected to be
    consummated in July 2006. Following such purchase we will hold a
    34.91% equity interest in iHQ. In August 2005, we also acquired
    a 60% stake in YBM Seoul Records Inc., Koreas largest
    music recording company in terms of records released and
    revenues, for Won 27.9 billion. Through our acquisition of
    YBM, we are able to offer customers of our MelOn service access
    to an expanded digital music contents pool. Also, in July and
    October 2005, we and certain other Korean investment companies
    invested an aggregate Won 40 billion to establish three
    funds to invest in the music industry and seek strategic
    partnerships with recording companies. As of December 31,
    2005, our contribution to the funds amounted to Won
    39.6 billion. Furthermore, in September, October and
    December 2005, we and co-investors invested an aggregate Won
    55.8 billion to establish four movie-production funds to
    strengthen our ability to obtain movie contents. We had invested
    Won 20 billion in the funds as of December 31, 2005.
    Such investments reflect our business strategy of
    diversification into new areas, such as media and entertainment.



| |                  
| | -----------------
| | Other Investments





| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Hanaro Telecom. As of December 31, 2005, 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 had
    increased to 4.8% as of December 31, 2004, up from 1.8% as
    of December 31, 2003. Following Hanaros merger with
    Korea Thrunet in January 2006, we continue to hold a 4.8% equity
    interest in Hanaro.
|
| |  | Powercomm. We currently own a 5.0% interest in Powercomm
    Corporation, with a book value as of December 31, 2005, of
    Won 77.1 billion. For more information, see note 4 of
    the notes to our consolidated financial statements. Powercomm is
    an operator of fixed-line networks that provides                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             

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| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |   | 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,
    2005 of Won 168.2 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
    Item 7B. Related Party Transactions.



Competition












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Law and Regulation




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



48



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









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



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





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





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







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



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







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







51



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









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





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





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| |                         
| | ------------------------
| | Handset Subsidy Payments

provided


53



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Patents and Licensed Technology








Organizational Structure




Significant Subsidiaries









|         |                         
|-------- | ------------------------
|Item 4C. | Organizational Structure



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|         |                               
|-------- | ------------------------------
|Item 4D. | Property, Plants And Equipment



|                          |  |                                           |  |                  |           | 
|------------------------- |  | ----------------------------------------- |  | ---------------- | --------- | 
|                          |  |                                           |  | Approximate Area |          
|Location                  |  | Primary Use                               |  | in Square Feet   |          
|                          |  |                                           |  |                  |          
|Seoul Metropolitan Area   |  | Corporate Headquarters                    |  |                  | 988,455   | 
|                          |  | Regional Headquarters                     |  |                  | 1,095,992 | 
|                          |  | Customer Service Centers                  |  |                  | 384,223   | 
|                          |  | Training Centers                          |  |                  | 397,574   | 
|                          |  | Central Research and Development Center   |  |                  | 482,725   | 
|                          |  | Others                                    |  |                  | 547,061   | 
|Busan                     |  | Regional Headquarters                     |  |                  | 363,272   | 
|                          |  | Others                                    |  |                  | 237,056   | 
|Daegu                     |  | Regional Headquarters                     |  |                  | 153,573   | 
|                          |  | Others                                    |  |                  | 317,440   | 
|Cholla and Jeju Provinces |  | Regional Headquarters                     |  |                  | 265,595   | 
|                          |  | Others                                    |  |                  | 359,784   | 
|Choongchung Province      |  | Regional Headquarters                     |  |                  | 459,240   | 
|                          |  | Others                                    |  |                  | 481,978   | 
|Others                    |  | Seoul National University Research Center |  |                  | 108,530   | 
|                          |  | KAIST SUPEX Management Center             |  |                  | 10,817    | 
|                          |  | Ewha University SK Telecom Center         |  |                  | 7,117     | 












|          |                          
|--------- | -------------------------
|Item 4.A. | UNRESOLVED STAFF COMMENTS



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|        |                                             
|------- | --------------------------------------------
|Item 5. | OPERATING AND FINANCIAL REVIEW AND PROSPECTS








|         |                  
|-------- | -----------------
|Item 5A. | Operating Results

Overview




| |        
| | -------
| | Revenue





|                         |                                  |                                          |          |            |         |  |       |         |            |   |          |          |   |            |       |      |         |   |          |          |   |  |       |      | 
|------------------------ | -------------------------------- | ---------------------------------------- | -------- | ---------- | ------- |  | ----- | ------- | ---------- | - | -------- | -------- | - | ---------- | ----- | ---- | ------- | - | -------- | -------- | - |  | ----- | ---- | 
|                         |                                  | Year Ended December 31,                  |         
|                         |                                  |                                          |         
|                         |                                  | 2003                                     |          |            | 2004    |  |       | 2005    |           
|                         |                                  |                                          |          |            |         |  |       |         |           
|                         |                                  |                                          |          | Percentage |         |  |       |         | Percentage |   |          |          |   | Percentage |      
|                         |                                  |                                          |          | of Total   |         |  |       |         | of Total   |   |          |          |   | of Total   |      
|                         |                                  | Revenue                                  |          |            | Revenue |  |       | Revenue |            |   | Revenue  |          |   | Revenue    |       |      | Revenue |  
|                         |                                  |                                          |          |            |         |  |       |         |            |   |          |          |   |            |       |      |         |  
|                         |                                  | (In billions of won, except percentages) |         
|Cellular Revenue:        |                                  |                                          |          |            |         |  |       |         |            |   |          |          |   |            |       |      |         |   |          |          |   |  |       |     
|                         | Wireless Services(1)             |                                          | W        | 8,462.7    |         |  |       | 82.4    |            |   | W        | 8,798.4  |   |            |       | 83.2 |         |   | W        | 9,168.7  |   |  |       | 85.5 | 
|                         | Interconnection                  |                                          |          | 1,017.1    |         |  |       | 9.9     |            |   |          | 849.4    |   |            |       | 8.0  |         |   |          | 898.6    |   |  |       | 8.4  | 
|                         | Digital Handset Sales(2)         |                                          |          | 612.0      |         |  |       | 5.9     |            |   |          | 649.8    |   |            |       | 6.2  |         |   |          | 294.6    |   |  |       | 2.7  | 
|                         |                                  |                                          |          |            |         |  |       |         |            |   |          |          |   |            |       |      |         |  
|                         | Total Cellular Revenue           |                                          |          | 10,091.8   |         |  |       | 98.2    |            |   |          | 10,297.6 |   |            |       | 97.4 |         |   |          | 10,361.9 |   |  |       | 96.6 | 
|                         |                                  |                                          |          |            |         |  |       |         |            |   |          |          |   |            |       |      |         |  
|Other Revenue:           |                                  |                                          |          |            |         |  |       |         |            |   |          |          |   |            |       |      |         |   |          |          |   |  |       |     
|                         | International Calling Service(3) |                                          |          | 97.4       |         |  |       | 1.0     |            |   |          | 126.3    |   |            |       | 1.2  |         |   |          | 138.7    |   |  |       | 1.3  | 
|                         | Portal Service(4)                |                                          |          | 42.0       |         |  |       | 0.4     |            |   |          | 85.0     |   |            |       | 0.8  |         |   |          | 126.9    |   |  |       | 1.2  | 
|                         | Miscellaneous                    |                                          |          | 40.9       |         |  |       | 0.4     |            |   |          | 61.7     |   |            |       | 0.6  |         |   |          | 94.3     |   |  |       | 0.9  | 
|                         |                                  |                                          |          |            |         |  |       |         |            |   |          |          |   |            |       |      |         |  
|                         | Total Other Revenue:             |                                          |          | 180.3      |         |  |       | 1.8     |            |   |          | 273.0    |   |            |       | 2.6  |         |   |          | 359.9    |   |  |       | 3.4  | 
|                         |                                  |                                          |          |            |         |  |       |         |            |   |          |          |   |            |       |      |         |  
|Total Operating Revenue: |                                  | W                                        | 10,272.1 |            |         |  | 100.0 |         |            | W | 10,570.6 |          |   |            | 100.0 |      |         | W | 10,721.8 |          |   |  | 100.0 |     
|                         |                                  |                                          |          |            |         |  |       |         |            |   |          |          |   |            |       |      |         |  
|                         | Total Operating Revenue Growth   |                                          |          | 10.2       | %       |  |       |         |            |   |          | 2.9      | % |            |       |      |         |   |          | 1.4      | % |  |       |      | 






|    |                                                                                                                                                                                                                                                                
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Wireless services 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) | Until July 2005, we consolidated revenues derived from sales of
    digital handsets made through our former subsidiary, SK
    Teletech. In July 2005, we sold 4,542,000 shares of SK
    Teletech owned by us to Pantech & Curitel, Inc., a
    Korean mobile handset manufacturer, reducing our equity interest
    in SK Teletech from 89.1% to 29.1%, which became a 22.7% equity
    interest in Pantech following the merger of SK Teletech (renamed
    SKY Teletech following our sale of the company to
    Pantech & Curitel) into Pantech in December 2005.
|   
|(3) | Provided by SK Telink Co.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|   
|(4) | Portal service revenue attributable to SK Communications Co.,
    Ltd. and, since 2003, SK Communications and Paxnet Co., Ltd.,
    and since 2005, SK Communications, Paxnet Co., Ltd. and U-Land
    Company Limited.                                                                                                                                                                                                                                                                                                                                                







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land-to




|                                                          |  |                         |            |  |      |   |            |      |  |   |            | 
|--------------------------------------------------------- |  | ----------------------- | ---------- |  | ---- | - | ---------- | ---- |  | - | ---------- | 
|                                                          |  | Year Ended December 31, |           
|                                                          |  |                         |           
|                                                          |  | 2003                    |            |  | 2004 |   |            | 2005 | 
|                                                          |  |                         |            |  |      |   |            |      | 
|Outgoing Voice Minutes (In Thousands):(1)                 |  |                         | 42,175,874 |  |      |   | 43,184,944 |      |  |   | 45,241,348 | 
|Average Monthly Outgoing Voice Minutes Per Subscriber:(2) |  |                         | 197        |  |      |   | 194        |      |  |   | 197        | 
|Average Monthly Revenue Per Subscriber:(3)(4)             |  | W                       | 39,739     |  |      | W | 39,689     |      |  | W | 40,205     | 






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Does not include minutes of incoming calls or minutes of use
    relating the use of short text messaging and data services.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|   
|(2) | 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.
|   
|(3) | 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.                                                                                                             
|   
|(4) | Including interconnection revenue, consolidated average monthly
    revenue per subscriber was Won 44,546 for 2003, Won 43,542 for
    2004 and Won 44,167 for 2005.                                                                                                                                                                                                                                                                                                                                                                                                                                          



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Operating Expenses and Operating Margins.


Industry Consolidation.








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Operating Results




|                                                 |  |                                              |          |  |      |  |        |      |  |   |          |   |  |  |        |   |  |   |          |  |  |  |        |  
|------------------------------------------------ |  | -------------------------------------------- | -------- |  | ---- |  | ------ | ---- |  | - | -------- | - |  |  | ------ | - |  | - | -------- |  |  |  | ------ | -
|                                                 |  | For the Year Ended December 31,              |         
|                                                 |  |                                              |         
|                                                 |  | 2003                                         |          |  | 2004 |  |        | 2005 | 
|                                                 |  |                                              |          |  |      |  |        |      | 
|                                                 |  | (In billions of won, except percentage data) |         
|Operating Revenue                                |  | W                                            | 10,272.1 |  |      |  | 100.00 | %    |  | W | 10,570.6 |   |  |  | 100.00 | % |  | W | 10,721.8 |  |  |  | 100.00 | %
|Operating Expenses                               |  |                                              | 7,167.0  |  |      |  | 69.77  |      |  |   | 8,130.9  |   |  |  | 76.92  |   |  |   | 8,051.2  |  |  |  | 75.09  |  
|                                                 |  |                                              |          |  |      |  |        |      |  |   |          |   |  |  |        |   |  |  
|Operating Income                                 |  |                                              | 3,105.1  |  |      |  | 30.23  |      |  |   | 2,439.7  |   |  |  | 23.08  |   |  |   | 2,670.6  |  |  |  | 24.91  |  
|Other Income                                     |  |                                              | 261.4    |  |      |  | 2.54   |      |  |   | 199.4    |   |  |  | 1.89   |   |  |   | 392.6    |  |  |  | 3.66   |  
|Other Expenses                                   |  |                                              | 612.2    |  |      |  | 5.96   |      |  |   | 516.0    |   |  |  | 4.88   |   |  |   | 501.6    |  |  |  | 4.68   |  
|                                                 |  |                                              |          |  |      |  |        |      |  |   |          |   |  |  |        |   |  |  
|Income Before Income Taxes and Minority Interest |  |                                              | 2,754.3  |  |      |  | 26.81  |      |  |   | 2,123.1  |   |  |  | 20.09  |   |  |   | 2,561.6  |  |  |  | 23.89  |  
|Income Taxes                                     |  |                                              | 789.0    |  |      |  | 7.68   |      |  |   | 629.7    |   |  |  | 5.96   |   |  |   | 693.3    |  |  |  | 6.47   |  
|Minority Interest                                |  |                                              | 0.8      |  |      |  | 0.01   |      |  |   | (1.9     | ) |  |  | (0.02  | ) |  |   | 4.7      |  |  |  | 0.04   |  
|                                                 |  |                                              |          |  |      |  |        |      |  |   |          |   |  |  |        |   |  |  
|Net Income                                       |  | W                                            | 1,966.1  |  |      |  | 19.14  | %    |  | W | 1,491.5  |   |  |  | 14.10  | % |  | W | 1,873.0  |  |  |  | 17.47  | %
|                                                 |  |                                              |          |  |      |  |        |      |  |   |          |   |  |  |        |   |  |  
|Depreciation and Amortization(1)                 |  | W                                            | 1,510.5  |  |      |  | 14.70  | %    |  | W | 1,607.5  |   |  |  | 15.20  | % |  | W | 1,546.3  |  |  |  | 14.42  | %






|    |                                                                                                                                                                                                                                              
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Excludes the depreciation and amortization allocated to internal
    research and development costs of Won 135.8 billion,
    Won 134.1 billion and Won 126.9 billion for the years
    ended December 31, 2003, 2004 and 2005, respectively.



| |                      
| | ---------------------
| | 2005 Compared to 2004

Operating Revenue.


sign-up sign-up


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mobile-to mobile-to




Operating Expenses.










Mobile-to Mobile-to




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Operating Income.


Other Income.


Other Expenses.


Income Tax.


Net Income.




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

Operating Revenue.




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Operating Expenses.




Mobile-to Mobile-to












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Operating Income.


Other Income.


Other Expenses.


Income Tax.


Net Income.







|         |                                
|-------- | -------------------------------
|Item 5B. | Liquidity and Capital Resources

Liquidity










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

|                                                          |  |                                          |          |   |        |   |          |      |  |   |              |   |  |              |         |   |  |  |        |    |  |   |        |   |  |  |       |  
|--------------------------------------------------------- |  | ---------------------------------------- | -------- | - | ------ | - | -------- | ---- |  | - | ------------ | - |  | ------------ | ------- | - |  |  | ------ | -- |  | - | ------ | - |  |  | ----- | -
|                                                          |  | Year Ended December 31,                  |          |   | Change |  
|                                                          |  |                                          |          |   |        |  
|                                                          |  | 2003                                     |          |   | 2004   |   |          | 2005 |  |   | 2003 to 2004 |   |  | 2004 to 2005 |        
|                                                          |  |                                          |          |   |        |   |          |      |  |   |              |   |  |              |        
|                                                          |  | (In billions of won, except percentages) |         
|Net Cash Flow from Operating Activities                   |  | W                                        | 3,329.4  |   |        | W | 2,516.8  |      |  | W | 3,404.1      |   |  | W            | (812.6  | ) |  |  | (24.4  | )% |  | W | 887.3  |   |  |  | 35.3  | %
|Net Cash Used in Investing Activities                     |  |                                          | (1,415.1 | ) |        |   | (1,470.3 | )    |  |   | (1,938.2     | ) |  |              | (55.2   | ) |  |  | (3.9   | )  |  |   | (467.9 | ) |  |  | (31.8 | )
|Net Cash Used in Financing Activities                     |  |                                          | (2,261.0 | ) |        |   | (968.6   | )    |  |   | (1,429.0     | ) |  |              | 1,292.4 |   |  |  | 57.2   |    |  |   | (460.4 | ) |  |  | (47.5 | )
|Net Cash Flow due to Changes in Consolidated Subsidiaries |  |                                          | 0.1      |   |        |   | (24.8    | )    |  |   | (29.1        | ) |  |              | (24.9   | ) |  |  | (249.0 | )  |  |   | (4.3   | ) |  |  | (17.3 | )
|                                                          |  |                                          |          |   |        |   |          |      |  |   |              |   |  |              |         |   |  |  |        |    | 
|Equivalents                                               |  | W                                        | (346.6   | ) |        | W | 53.1     |      |  | W | 7.8          |   |  | W            | 399.7   |   |  |  | 115.3  |    |  | W | (45.3  | ) |  |  | (85.3 | )
|Cash and Cash Equivalents at Beginning of Period          |  |                                          | 664.1    |   |        |   | 317.5    |      |  |   | 370.6        |   |  |              | (346.6  | ) |  |  | (52.2  | )  |  |   | 53.1   |   |  |  | 16.7  |  
|                                                          |  |                                          |          |   |        |   |          |      |  |   |              |   |  |              |         |   |  |  |        |    | 
|Cash and Cash Equivalents at End of Period                |  | W                                        | 317.5    |   |        | W | 370.6    |      |  | W | 378.4        |   |  | W            | 53.1    |   |  |  | 16.7   | %  |  | W | 7.8    |   |  |  | 2.1   | %
|                                                          |  |                                          |          |   |        |   |          |      |  |   |              |   |  |              |         |   |  |  |        |    | 

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, |    
|                                       |          |                                  |    
|                                       |          | 2003                             |     |       | 2004 |   |     | 2005  | 
|                                       |          |                                  |     |       |      |   |     |       | 
|                                       |          | (In billions of won)             |    
|CDMA (95A/B, 1xRTT and EV-DO) Network3 |          | W                                | 737 |       |      | W | 728 |       |  | W | 376 |      
|WCDMA Network                          |          |                                  | 204 |       |      |   | 220 |       |  |   | 575 |      
|WiBro(1)                               |          |                                  |    |       |      |   |    |       |  |   |    |      
|Others(2)                              |          |                                  | 707 |       |      |   | 684 |       |  |   | 466 |      
|                                       |          |                                  |     |       |      |   |     |       | 
|                                       | Total(3) |                                  | W   | 1,648 |      |   | W   | 1,632 |  |   | W   | 1,417 | 
|                                       |          |                                  |     |       |      |   |     |       | 






|    |                                                                                                                               
|--- | ------------------------------------------------------------------------------------------------------------------------------
|(1) | We commenced WiBro service in May 2006.                                                                                       
|   
|(2) | Includes investments in infrastructure consisting of equipment
    necessary for the provision of data services and marketing.
|   
|(3) | Also, see note 7 of the notes to our consolidated financial
    statements.                                                   







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SK-EarthLink








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|                         |  |                      |         | 
|------------------------ |  | -------------------- | ------- | 
|Year Ending December 31, |  | Total                |        
|                         |  |                      |        
|                         |  | (In billions of won) |        
|2006                     |  | W                    | 814.4   | 
|2007                     |  |                      | 708.6   | 
|2008                     |  |                      | 301.7   | 
|After 2008               |  |                      | 1,389.8 | 









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fixed-to


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Contractual Obligations and Commitments




|                                      |           |                           |         |           |        |   |         |           |       |   |           |         |  |         |         |       |  |   |       |       | 
|------------------------------------- | --------- | ------------------------- | ------- | --------- | ------ | - | ------- | --------- | ----- | - | --------- | ------- |  | ------- | ------- | ----- |  | - | ----- | ----- | 
|                                      |           | Payments Due by Period(1) |        
|                                      |           |                           |        
|                                      |           |                           |         | Less Than |        |   |         |           | After |  
|                                      |           | Total                     |         |           | 1 Year |   |         | 1-3 Years |       |   | 4-5 Years |         |  | 5 Years |        
|                                      |           |                           |         |           |        |   |         |           |       |   |           |         |  |         |        
|                                      |           | (In billions of won)      |        
|Bonds                                 |           |                           |         |           |        |   |         |           |       |   |           |         |  |         |         |       |  |   |       |      
|                                      | Principal |                           | W       | 3,189.8   |        |   | W       | 800.0     |       |   | W         | 1,000.0 |  |         | W       | 885.9 |  |   | W     | 503.9 | 
|                                      | Interest  |                           |         | 334.0     |        |   |         | 132.0     |       |   |           | 136.0   |  |         |         | 54.0  |  |   |       | 12.0  | 
|Long-term borrowings                  |           |                           | 0.2     |           |        |   | 0.1     |           |       |   | 0.1       |         |  |         | 0.0     |       |  |   |       |      
|Capital lease obligations             |           |                           | 24.5    |           |        |   | 14.3    |           |       |   | 10.2      |         |  |         |        |       |  |   |      |      
|Operating leases                      |           |                           |        |           |        |   |        |           |       |   |          |         |  |         |        |       |  |   |       |      
|Purchase obligations                  |           |                           | 53.5    |           |        |   | 53.5    |           |       |   |          |         |  |         |        |       |  |   |       |      
|Facility deposits                     |           |                           | 38.7    |           |        |   | 14.9    |           |       |   |          |         |  |         |        |       |  |   | 23.8  |      
|Derivatives                           |           |                           | 73.0    |           |        |   |        |           |       |   |          |         |  |         | 13.0    |       |  |   | 60.0  |      
|Investment commitment to HELIO        |           |                           | 99.3    |           |        |   | 79.5    |           |       |   | 19.8      |         |  |         |        |       |  |   |      |      
|Other long-term payables(2)           |           |                           |         |           |        |   |         |           |       |   |           |         |  |         |         |       |  |   |       |      
|                                      | Principal |                           |         | 650.0     |        |   |         |          |       |   |           | 200.0   |  |         |         | 280.0 |  |   |       | 170.0 | 
|                                      | Interest  |                           |         | 138.4     |        |   |         | 32.0      |       |   |           | 60.0    |  |         |         | 38.0  |  |   |       | 8.4   | 
|                                      |           |                           |         |           |        |   |         |           |       |   |           |         |  |         |        
|Total contractual cash obligations(3) |           | W                         | 4,601.4 |           |        | W | 1,126.3 |           |       | W | 1,426.1   |         |  | W       | 1,270.9 |       |  | W | 778.1 |      
|                                      |           |                           |         |           |        |   |         |           |       |   |           |         |  |         |        






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | We are contractually obligated to make severance payments to
    eligible employees we have employed for more than one year, upon
    termination of their employment, regardless of whether such
    termination is voluntary or involuntary. Accruals for severance
    indemnities are recorded based on the amount we would be
    required to pay in the event the employment of all our employees
    were to terminate at the balance date. However, we have not yet
    estimated cash flows for future periods. Accordingly, payments
    due in connection with severance indemnities have been excluded
    from this table.
|   
|(2) | Related to acquisition of IMT license. See note 2(j) of the
    notes to our consolidated financial statements.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|   
|(3) | This amount does not include our future investments in the CDMA
    market in Vietnam, which we expect to make through our overseas
    subsidiary SLD Telecom PTE. Ltd. under a business cooperation
    contract with Saigon Post & Telecommunication Service
    Corporation. See Item 4B. Business
    Overview  Other Investments and Relationships
    and  Critical Accounting Policies, Estimates
    And Judgments 
    Off-Balance Sheet
    Arrangements.                                                                                                                                                            



Inflation




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U.S. GAAP Reconciliation








New Accounting Pronouncements under U.S. GAAP


03-1, 03-1 03-1 03-1,






73



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03-1.






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Significant Changes in Korean GAAP










| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Through 2004, when our equity interests in the equity method
    investees were diluted as a result of the equity method
    investees direct sales of their unissued shares to third
    parties, the changes in the our proportionate equity of
    investees were accounted for as capital transactions. Effective
    January 1, 2005, such transactions are accounted for as
    income statement treatment, pursuant to adoption of SKAS
    No. 15, Investments: Equity Method. As a result
    of adopting SKAS No. 15, net income for the year ended
    December 31, 2005 increased by Won 6.3 billion (net of
    tax effect of Won 2.4 billion).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|
| |  | Through 2004, tax effects of temporary differences related to
    capital surplus or capital adjustments were excluded in
    determining the deferred tax assets or liabilities. Effective
    January 1, 2005, such tax effects of temporary differences
    are included in determining the deferred tax assets or
    liabilities, pursuant to adoption of SKAS No. 16
    Income Taxes. Accordingly, adjustments made directly
    to capital surplus or capital adjustments, which result in
    temporary differences, are recorded net of related tax effects.
    In addition, effective January 1, 2005, deferred income tax
    assets and liabilities which were presented on the balance sheet
    as a single non-current net number through 2004, are separated
    into current and non-current portions. As a result of adopting
    SKAS No. 16, total assets and total liabilities as of
    December 31, 2005 increased by Won 67.6 billion and
    Won 97.8 billion, respectively, and total
    stockholders equity as of December 31, 2005 decreased
    by Won 30.2 billion, which was directly reflected in
    capital surplus or capital adjustments. See note 18 of the
    notes to our consolidated financial statements.

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| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Through 2004, provisions were recorded at nominal value.
    Effective January 1, 2005, provisions are recorded at the
    present value when the effect of the time value of money is
    material, pursuant to adoption of SKAS No. 17
    Provisions, Contingent Liabilities and Contingent
    Assets. SKAS No. 17 is prospectively applied and as a
    result of adopting such accounting standard, total liabilities
    as of December 31, 2005 decreased by Won 7.4 billion
    and ordinary income and net income for the year ended
    December 31, 2005 increased by Won 5.4 billion. See
    note 25 of the notes to our consolidated financial
    statements.





Critical Accounting Policies, Estimates And Judgments






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





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





| |                       
| | ----------------------
| | Estimated Useful Lives



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| |                                                                              
| | -----------------------------------------------------------------------------
| | Impairment of Long-lived Assets Including the WCDMA
    Frequency Usage Right







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

held-to








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



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







| |                               
| | ------------------------------
| | Off-Balance Sheet Arrangements










Item 5C.     Research and
Development


Overview




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|                      |                    |                              |       |       |      |   |       |       |  |   |       |       | 
|--------------------- | ------------------ | ---------------------------- | ----- | ----- | ---- | - | ----- | ----- |  | - | ----- | ----- | 
|                      |                    | As of and for the Year Ended |      
|                      |                    | December 31,                 |      
|                      |                    |                              |      
|                      |                    | 2003                         |       |       | 2004 |   |       | 2005  | 
|                      |                    |                              |       |       |      |   |       |       | 
|                      |                    | (In billions of won)         |      
|Internal R&D Expenses |                    | W                            | 235.8 |       |      | W | 267.1 |       |  | W | 252.0 |      
|External R&D Expenses |                    |                              | 64.9  |       |      |   | 69.0  |       |  |   | 69.1  |      
|                      |                    |                              |       |       |      |   |       |       | 
|                      | Total R&D Expenses |                              | W     | 300.7 |      |   | W     | 336.1 |  |   | W     | 321.1 | 
|                      |                    |                              |       |       |      |   |       |       | 





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



state-of






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



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|         |                  
|-------- | -----------------
|Item 5D. | Trend Information








|         |                               
|-------- | ------------------------------
|Item 5E. | Off-Balance Sheet Arrangements








|         |                                              
|-------- | ---------------------------------------------
|Item 5F. | Tabular Disclosure of Contractual Obligations








|        |                                           
|------- | ------------------------------------------
|Item 6. | DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES






|         |                                
|-------- | -------------------------------
|Item 6A. | Directors and Senior Management









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|               |  |               |  |          |      |  |            |  |      |                 |  |                                                                                    |  |                                         |  |                                                                                                                                                                    
|-------------- |  | ------------- |  | -------- | ---- |  | ---------- |  | ---- | --------------- |  | ---------------------------------------------------------------------------------- |  | --------------------------------------- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------
|               |  |               |  |          |      |  |            |  |      | Other Principal |  |                                                                                   
|               |  |               |  | Director |      |  | Expiration |  |      |                 |  | Directorships and                                                                  |  |                                        
|Name           |  | Date of Birth |  | Since    |      |  | of Term    |  |      | Position        |  | 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, Inc.;
    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

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|                |  |               |               |          |       |  |            |         |  |                 |          |                   |           |                                     |                     |                                                                                                                                |  |                                                                                                                                                                                                                         
|--------------- |  | ------------- | ------------- | -------- | ----- |  | ---------- | ------- |  | --------------- | -------- | ----------------- | --------- | ----------------------------------- | ------------------- | ------------------------------------------------------------------------------------------------------------------------------ |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                |  |               |               |          |       |  |            |         |  | Other Principal |          |                  
|                |  |               |               | Director |       |  | Expiration |         |  |                 |          | Directorships and |           |                                    
|Name            |  | Date of Birth |               |          | Since |  |            | of Term |  |                 | Position |                   | Positions |                                     | Business Experience
|                |  |               |               |          |       |  |            |         |  |                 |          |                   |           |                                     |                    
|Dae Sik Kim     |  |               | Jan. 11, 1955 |          |       |  | 2005       |         |  |                 | 2008     |                   |           | Independent Non- executive Director |                     | Professor, Hanyang University; Committee Member, MOFE Advisory
    Committee on Financial Development                          |  | University of Pennsylvania, MBA (1981), Ph.D. (1987)                                                                                                                                                                    
|Yong Woon Kim   |  |               | Oct. 4, 1943  |          |       |  | 2003       |         |  |                 | 2006     |                   |           | Independent Non- executive 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 Kyu Byun    |  |               | Mar. 8, 1960  |          |       |  | 2005       |         |  |                 | 2008     |                   |           | Independent Non- executive 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     |                   |           | Independent Non- executive Director |                     | President, Tong- Myung University of Information Technology                                                                    |  | Polytechnic Institute of Brooklyn, Ph.D.;
    7th Minister, Ministry of Information and Communication                                                                                                                   
|Jae Seung Yoon  |  |               | Nov. 9, 1962  |          |       |  | 2002       |         |  |                 | 2008     |                   |           | Independent Non- executive 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.                                                                           
|Sang C. Lee     |  |               | Jan. 24, 1941 |          |       |  | 1999       |         |  |                 | 2008     |                   |           | Independent Non- executive 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.
|Hyun Chin Lim   |  |               | Apr. 26, 1949 |          |       |  | 2006       |         |  |                 | 2009     |                   |           | Independent Non- executive Director |                     | Dean, Seoul National University, Professor, Central Officials
    Training Institute; Chairman, Korea Association of Sociology |  | Professor, Seoul National University                                                                                                                                                                                    

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Involvement In Certain Legal Proceedings









|         |             
|-------- | ------------
|Item 6B. | Compensation







83



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|                |       |                                    |  |                 |   |   |           |  |   |      |  |  |           |   |  |  |   |   | 
|--------------- | ----- | ---------------------------------- |  | --------------- | - | - | --------- |  | - | ---- |  |  | --------- | - |  |  | - | - | 
|                |       |                                    |  | Number of       |   |   |          
|                |       |                                    |  | Shares Allotted |   |   | Number of | 
|                |       |                                    |  |                 |   |   | Options   | 
|Name            |       | Position                           |  | 2003            |   |   | 2004      |  |   | 2005 |  |  | Exercised |  
|                |       |                                    |  |                 |   |   |           |  |   |      |  |  |           |  
|Jung Nam Cho    |       | Director                           |  |                 | 0 |   |           |  | 0 |      |  |  | 0         |   |  |  | 0 |  
|Shin Bae Kim    |       | Director                           |  |                 | 0 |   |           |  | 0 |      |  |  | 0         |   |  |  | 0 |  
|Bang Hyung Lee  |       | Director                           |  |                 | 0 |   |           |  | 0 |      |  |  | 0         |   |  |  | 0 |  
|Sung Min Ha     |       | Director                           |  |                 | 0 |   |           |  | 0 |      |  |  | 0         |   |  |  | 0 |  
|Dae Sik Kim     |       | Independent Non-executive Director |  |                 | 0 |   |           |  | 0 |      |  |  | 0         |   |  |  | 0 |  
|Yong Woon Kim   |       | Independent Non-executive Director |  |                 | 0 |   |           |  | 0 |      |  |  | 0         |   |  |  | 0 |  
|Dae Kyu Byun    |       | Independent Non-executive Director |  |                 | 0 |   |           |  | 0 |      |  |  | 0         |   |  |  | 0 |  
|Seung Taik Yang |       | Independent Non-executive Director |  |                 | 0 |   |           |  | 0 |      |  |  | 0         |   |  |  | 0 |  
|Jae Seung Yoon  |       | Independent Non-executive Director |  |                 | 0 |   |           |  | 0 |      |  |  | 0         |   |  |  | 0 |  
|Sang C. Lee     |       | Independent Non-executive Director |  |                 | 0 |   |           |  | 0 |      |  |  | 0         |   |  |  | 0 |  
|Hyun Chin Lim   |       | Independent Non-executive Director |  |                 | 0 |   |           |  | 0 |      |  |  | 0         |   |  |  | 0 |  
|Other Officers  |       |                                    |  |                 | 0 |   |           |  | 0 |      |  |  | 0         |   |  |  | 0 |  
|                |       |                                    |  |                 |   |   |           |  |   |      |  |  |           |  
|                | Total |                                    |  |                 |   | 0 |           |  |   | 0    |  |  |           | 0 |  |  |   | 0 | 
|                |       |                                    |  |                 |   |   |           |  |   |      |  |  |           |  






|         |                
|-------- | ---------------
|Item 6C. | Board Practices

Termination of Directors, Services




Audit Committee






| |   |                                                                                                                                     
| | - | ------------------------------------------------------------------------------------------------------------------------------------
| |  | 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.                                                             





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Independent Non-executive Director Nomination Committee




Capex Review Committee




Compensation Review Committee




Global Committee




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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 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, which is comprised solely of three
    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.         

|                                                                                                                                                                                                                    |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|NYSE Corporate Governance Standards                                                                                                                                                                                 |  | SK Telecom Corporate Governance Practice                                                                                                                                                                                                                                                                                                                                                                                                                                
|                                                                                                                                                                                                                    |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|Audit Committee                                                                                                                                                                                                     |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|Listed companies must have an audit committee that satisfies 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). We manage such
    compensation plans in compliance with the applicable laws and
    our articles of incorporation, provided that, under certain
    limited circumstances, the grant of stock options or matters
    relating to ESOP are not subject to shareholders 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 matters, including the governance of the
    board of directors.                                                                                                                                                                                                                                              
|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.                                                                                                                                                                                                                                                                                    

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|         |          
|-------- | ---------
|Item 6D. | Employees



|                  |  |           |       |  |           |  |       |       |  |  |       | 
|----------------- |  | --------- | ----- |  | --------- |  | ----- | ----- |  |  | ----- | 
|                  |  | Regular   |       |  | Temporary |  |       |      
|                  |  | Employees |       |  | Employees |  |       | Total | 
|                  |  |           |       |  |           |  |       |       | 
|December 31, 2003 |  |           | 5,447 |  |           |  | 1,474 |       |  |  | 6,921 | 
|December 31, 2004 |  |           | 6,421 |  |           |  | 932   |       |  |  | 7,353 | 
|December 31, 2005 |  |           | 5,727 |  |           |  | 919   |       |  |  | 6,646 | 





|                    |       |           |       |       |            |  |       |          |  |     |         |     |  |          |       |       |       |  |     |     |  |  |       |       | 
|------------------- | ----- | --------- | ----- | ----- | ---------- |  | ----- | -------- |  | --- | ------- | --- |  | -------- | ----- | ----- | ----- |  | --- | --- |  |  | ----- | ----- | 
|                    |       |           |       |       |            |  |       |          |  | New |         |     | 
|                    |       | Marketing |       |       | Production |  |       | Research |  |     | Support |     |  | Business |       |       | Total | 
|                    |       |           |       |       |            |  |       |          |  |     |         |     |  |          |       |       |       | 
|Regular Employees   |       |           | 1,613 |       |            |  | 1,880 |          |  |     | 552     |     |  |          | 1,011 |       |       |  | 691 |     |  |  | 5,727 |      
|Temporary Employees |       |           | 669   |       |            |  | 148   |          |  |     | 6       |     |  |          | 80    |       |       |  | 16  |     |  |  | 919   |      
|                    |       |           |       |       |            |  |       |          |  |     |         |     |  |          |       |       |       | 
|                    | Total |           |       | 2,282 |            |  |       | 2,028    |  |     |         | 558 |  |          |       | 1,091 |       |  |     | 687 |  |  |       | 6,646 | 
|                    |       |           |       |       |            |  |       |          |  |     |         |     |  |          |       |       |       | 











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|         |                
|-------- | ---------------
|Item 6E. | Share Ownership



|                        |  |          |                                    |           |       |            |          |             |  |         |        |  |  |         |      |  |  |  |       | 
|----------------------- |  | -------- | ---------------------------------- | --------- | ----- | ---------- | -------- | ----------- |  | ------- | ------ |  |  | ------- | ---- |  |  |  | ----- | 
|                        |  |          |                                    |           |       | Percentage |          |             |  |         |       
|                        |  |          |                                    | Number    |       |            | of Total |             |  | Special |        |  | 
|                        |  |          |                                    | of Shares |       |            | Shares   |             |  | Voting  |        |  | 
|Name                    |  | Position |                                    |           | Owned |            |          | Outstanding |  |         | Rights |  |  | Options |     
|                        |  |          |                                    |           |       |            |          |             |  |         |        |  |  |         |     
|Standing Directors:     |  |          |                                    |           |       |            |          |             |  |         |        |  |  |         |      |  |  |  |       | 
|Jung Nam Cho            |  |          | Vice-Chairman and Representative   |           |       |            | 0        |             |  |         | 0      |  |  |         | None |  |  |  | 6,150 | 
|                        |  |          | Director                           |           |       |            |          |             |  |         |        |  |  |         |      |  |  |  |       | 
|Shin Bae Kim            |  |          | CEO and Representative Director    |           |       |            | 1,270    |             |  |         | *      |  |  |         | None |  |  |  | 1,650 | 
|Bang Hyung Lee          |  |          | Executive Vice-President           |           |       |            | 1,630    |             |  |         | *      |  |  |         | None |  |  |  | 1,620 | 
|Sung Min Ha             |  |          | Chief Financial Officer            |           |       |            | 738      |             |  |         | *      |  |  |         | None |  |  |  | 690   | 
|Non-Standing Directors: |  |          |                                    |           |       |            |          |             |  |         |        |  |  |         |      |  |  |  |       | 
|Dae Sik Kim             |  |          | Independent Non-executive Director |           |       |            | 0        |             |  |         | 0      |  |  |         | None |  |  |  | 1,000 | 
|Yong Woon Kim           |  |          | Independent Non-executive Director |           |       |            | 0        |             |  |         | 0      |  |  |         | None |  |  |  | 0     | 
|Dae Kyu Byun            |  |          | Independent Non-executive Director |           |       |            | 50       |             |  |         | *      |  |  |         | None |  |  |  | 1,000 | 
|Seung Taik Yang         |  |          | Independent Non-executive Director |           |       |            | 0        |             |  |         | 0      |  |  |         | None |  |  |  | 0     | 
|Jae Seung Yoon          |  |          | Independent Non-executive Director |           |       |            | 200      |             |  |         | *      |  |  |         | None |  |  |  | 1,000 | 
|Sang C. Lee             |  |          | Independent Non-executive Director |           |       |            | 0        |             |  |         | 0      |  |  |         | None |  |  |  | 1,000 | 
|Hyun Chin Lim           |  |          | Independent Non-executive Director |           |       |            | 0        |             |  |         | 0      |  |  |         | None |  |  |  | 0     | 






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

88



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|        |                                                  
|------- | -------------------------------------------------
|Item 7. | MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS






|         |                   
|-------- | ------------------
|Item 7A. | Major Shareholders



|                      |                             |           |            |            |        |  |            |             |   |  |       |        |  
|--------------------- | --------------------------- | --------- | ---------- | ---------- | ------ |  | ---------- | ----------- | - |  | ----- | ------ | -
|                      |                             |           |            | Percentage |        |  | Percentage |            
|                      |                             |           |            | Total      |        |  | Total      |            
|                      |                             | Number of |            |            | Shares |  |            | Shares      |  
|Shareholder/Category  |                             | Shares    |            |            | Issued |  |            | Outstanding |  
|                      |                             |           |            |            |        |  |            |             |  
|Domestic Shareholders |                             |           |            |            |        |  |            |             |   |  |       |       
|                      | SK Group(1)                 |           |            | 18,748,459 |        |  |            | 22.79       | % |  |       | 25.47  | %
|                      | POSCO                       |           |            | 2,991,496  |        |  |            | 3.64        |   |  |       | 4.06   |  
|                      | Employees(2)                |           |            | 297,246    |        |  |            | 0.36        |   |  |       | 0.40   |  
|                      | Treasury shares(3)          |           |            | 8,662,415  |        |  |            | 10.53       |   |  |       | N/A    |  
|                      | Officers and Directors      |           |            | 4,688      |        |  |            | 0.01        |   |  |       | 0.01   |  
|                      | Other Domestic Shareholders |           |            | 11,466,681 |        |  |            | 13.93       |   |  |       | 15.58  |  
|Foreign Shareholders  |                             |           | 40,105,726 |            |        |  | 48.74      |             |   |  | 54.48 |       
|                      |                             |           |            |            |        |  |            |             |  
|                      | 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, 2005:

|                        |  |           |            |            |        |  |            |             |  |  |       |  
|----------------------- |  | --------- | ---------- | ---------- | ------ |  | ---------- | ----------- |  |  | ----- | -
|                        |  |           |            | Percentage |        |  | Percentage |            
|                        |  |           |            | Total      |        |  | Total      |            
|                        |  | Number of |            |            | Shares |  |            | Shares      | 
|SK Group Member         |  | Shares    |            |            | Issued |  |            | Outstanding | 
|                        |  |           |            |            |        |  |            |             | 
|SK Corporation          |  |           | 17,663,127 |            |        |  | 21.47      | %           |  |  | 24.00 | %
|SK Securities Co., Ltd. |  |           | 7          |            |        |  | 0.00       |             |  |  | 0.00  |  
|SK Networks             |  |           | 1,085,325  |            |        |  | 1.32       |             |  |  | 1.47  |  
|                        |  |           |            |            |        |  |            |             | 
|                        |  |           | 18,748,459 |            |        |  | 22.79      | %           |  |  | 25.47 | %
|                        |  |           |            |            |        |  |            |             | 



|    |                                                                                                                                                    
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | The SK Group is a group of affiliated entities. As of
    December 31, 2005, the ownership interests among the SK
    Group included, among others:



| |   |                                                                                                                                                                     
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | SK Corporation owned: 21.47% of SK Telecom Co., Ltd., 40.97% of
    SK Networks, 46.22% of SKC and 72.13% of SK Shipping Co., Ltd.                                  
|
| |  | SK Networks owned 1.32% of SK Telecom Co., Ltd., 17.71% of SK
    Shipping, 15% of SK Computer & Communications Co.,
    Ltd., and 22.71% of SK Securities Co., Ltd.
|
| |  | SK Chemicals owned 0.83% of SK Corporation and 39.40% of SK
    Engineering and Construction.                                                                       
|
| |  | SKC owned 6.2% of SK Chemicals, 10.16% of SK Shipping Co., Ltd.
    and 12.41% of SK Securities Co., Ltd.                                                           
|
| |  | SK Shipping Co., Ltd. owned 30.94% of SK Engineering and
    Construction.                                                                                          
|
| |  | SK Computer & Communications Co., Ltd. owned 11.16% of
    SK Corporation.                                                                                          
|
| |  | We owned 30.0% of SK Computer & Communications Co., Ltd.                                                                                                            



|    |                                                                                                   
|--- | --------------------------------------------------------------------------------------------------
|(2) | Represents shares owned by our employee stock ownership
    association. See Item 6D. Employees.

89



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|    |                                                                                                                                                                                                                                                                                                                
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(3) | Treasury shares do not have any voting rights; includes
    1,777,173 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.



|               |  |                           |       |   |      |  |       |      |  |  |       |  
|-------------- |  | ------------------------- | ----- | - | ---- |  | ----- | ---- |  |  | ----- | -
|               |  | As of December 31,        |      
|               |  |                           |      
|Shareholder    |  | 2003                      |       |   | 2004 |  |       | 2005 | 
|               |  |                           |       |   |      |  |       |      | 
|               |  | (As a percentage of total |      
|               |  | issued shares)(1)         |      
|SK Group       |  |                           | 24.60 | % |      |  | 24.03 | %    |  |  | 22.79 | %
|SK Corporation |  |                           | 21.47 |   |      |  | 21.47 |      |  |  | 21.47 |  
|SK Networks(2) |  |                           | 3.06  |   |      |  | 2.55  |      |  |  | 1.32  |  
|POSCO(3)       |  |                           | 4.98  |   |      |  | 4.98  |      |  |  | 3.64  |  






|    |                                                                                                                                  
|--- | ---------------------------------------------------------------------------------------------------------------------------------
|(1) | Includes 8,662,403, 8,662,415 and 8,662,415 shares held in
    treasury as of December 31, 2003, 2004 and 2005,
    respectively.
|   
|(2) | SK Networks sold 418,000 shares in January 2004 and
    currently owns 1,085,325 shares.                                         
|   
|(3) | POSCO acquired these shares in connection with our acquisition
    of a 27.7% equity interest in Shinsegi.                       









90



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|         |                           
|-------- | --------------------------
|Item 7B. | Related Party Transactions

SK Networks










91



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Other Related Parties

























|         |                                
|-------- | -------------------------------
|Item 7C. | Interest of Experts and Counsel

Not applicable


92



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|        |                      
|------- | ---------------------
|Item 8. | FINANCIAL INFORMATION






|         |                                                            
|-------- | -----------------------------------------------------------
|Item 8A. | Consolidated Statements and Other Financial
    Information



Legal Proceedings




| |                
| | ---------------
| | FTC Proceedings











| |                
| | ---------------
| | MIC Proceedings









93



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30-day 30-day 20-day














94



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value-added






| |                    
| | -------------------
| | Multinet Litigation









| |                    
| | -------------------
| | Coloring Litigation





| |                          
| | -------------------------
| | GNI Enterprise Litigation





95



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Dividends








|                        |  |             |        |                      |  |                  |       |  |  |  |            | 
|----------------------- |  | ----------- | ------ | -------------------- |  | ---------------- | ----- |  |  |  | ---------- | 
|                        |  |             |        |                      |  | Number of Shares
|                        |  | Dividend    |        | Total Amount of      |  | Entitled to     
|Year Ended December 31, |  | per Share   |        | Dividends            |  | Dividend        
|                        |  |             |        |                      |  |                 
|                        |  | (In won)(1) |        | (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 | 
|2005                    |  |             | 9,000  |                      |  |                  | 662.5 |  |  |  | 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.







96



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|         |                    
|-------- | -------------------
|Item 8B. | Significant Changes

Not applicable







|        |                      
|------- | ---------------------
|Item 9. | THE OFFER AND LISTING






|         |                             
|-------- | ----------------------------
|Item 9A. | Offering and Listing Details






Item 9B.     Plan of
Distribution


Not applicable





Item 9C.     Markets






97



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Shares of Common Stock




|                       |                                  |                        |         |                 |         |       |         |                    |         |  |         |         |         |  |         |         |         | 
|---------------------- | -------------------------------- | ---------------------- | ------- | --------------- | ------- | ----- | ------- | ------------------ | ------- |  | ------- | ------- | ------- |  | ------- | ------- | ------- | 
|                       |                                  | Prices(1)             
|                       |                                  |                       
|                       |                                  |                        |         | Average Daily  
|                       |                                  |                        |         | Trading Volume 
|Calendar Year          |                                  | High(1)                |         | Low(1)          |         | Close |         | (Number of Shares)
|                       |                                  |                        |         |                 |         |       |         |                   
|                       |                                  |                        |         | (Won per share) |         |       |         |                   
|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                   |                                  |                        | 216,500 |                 |         |       | 163,500 |                    |         |  | 181,000 |         |         |  | 187,053 |        
|                       | First Quarter                    |                        |         | 200,500         |         |       |         | 171,000            |         |  |         | 171,000 |         |  |         | 203,869 |        
|                       | Second Quarter                   |                        |         | 192,500         |         |       |         | 163,500            |         |  |         | 182,000 |         |  |         | 137,021 |        
|                       | Third Quarter                    |                        |         | 216,500         |         |       |         | 178,500            |         |  |         | 202,500 |         |  |         | 156,019 |        
|                       | Fourth Quarter                   |                        |         | 209,500         |         |       |         | 181,000            |         |  |         | 181,000 |         |  |         | 249,550 |        
|2006 (through June 26) |                                  |                        | 237,500 |                 |         |       | 176,000 |                    |         |  | 201,000 |         |         |  | 197,780 |        
|                       | First Quarter                    |                        |         | 204,500         |         |       |         | 176,000            |         |  |         | 192,500 |         |  |         | 177,491 |        
|                       |                                  | January                |         |                 | 192,000 |       |         |                    | 176,000 |  |         |         | 192,000 |  |         |         | 221,563 | 
|                       |                                  | February               |         |                 | 204,500 |       |         |                    | 189,500 |  |         |         | 202,500 |  |         |         | 201,075 | 
|                       |                                  | March                  |         |                 | 203,000 |       |         |                    | 187,500 |  |         |         | 192,500 |  |         |         | 113,984 | 
|                       | Second Quarter (through June 26) |                        |         | 237,500         |         |       |         | 188,500            |         |  |         | 201,000 |         |  |         | 220,204 |        
|                       |                                  | April                  |         |                 | 222,500 |       |         |                    | 188,500 |  |         |         | 221,500 |  |         |         | 262,914 | 
|                       |                                  | May                    |         |                 | 237,000 |       |         |                    | 207,500 |  |         |         | 225,500 |  |         |         | 182,659 | 
|                       |                                  | June (through June 26) |         |                 | 234,000 |       |         |                    | 193,000 |  |         |         | 201,000 |  |         |         | 214,127 | 








|    |                                                                                   
|--- | ----------------------------------------------------------------------------------
|(1) | Both high and low prices are based on the daily closing prices
    for the period.

98



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American Depositary Shares




|                       |                                  |                        |       |                |       |       |       |                    |       |  |       |       |       |  |         |           |           | 
|---------------------- | -------------------------------- | ---------------------- | ----- | -------------- | ----- | ----- | ----- | ------------------ | ----- |  | ----- | ----- | ----- |  | ------- | --------- | --------- | 
|                       |                                  | Prices(1)             
|                       |                                  |                       
|                       |                                  |                        |       | Average Daily 
|                       |                                  |                        |       | Trading Volume
|Calendar Year          |                                  | High(1)                |       | Low(1)         |       | Close |       | (Number of Shares)
|                       |                                  |                        |       |                |       |       |       |                   
|                       |                                  |                        |       | (US$ per ADS)  |       |       |       | (Number of ADSs)  
|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                   |                                  |                        | 23.14 |                |       |       | 18.96 |                    |       |  | 20.29 |       |       |  | 882,342 |          
|                       | First Quarter                    |                        |       | 22.19          |       |       |       | 19.41              |       |  |       | 19.72 |       |  |         | 798,390   |          
|                       | Second Quarter                   |                        |       | 21.84          |       |       |       | 18.96              |       |  |       | 20.40 |       |  |         | 618,870   |          
|                       | Third Quarter                    |                        |       | 23.14          |       |       |       | 20.06              |       |  |       | 21.84 |       |  |         | 1,071,227 |          
|                       | Fourth Quarter                   |                        |       | 21.95          |       |       |       | 19.74              |       |  |       | 20.29 |       |  |         | 1,039,398 |          
|2006 (through June 26) |                                  |                        | 27.70 |                |       |       | 20.62 |                    |       |  | 22.54 |       |       |  | 983,033 |          
|                       | First Quarter                    |                        |       | 24.56          |       |       |       | 20.62              |       |  |       | 23.59 |       |  |         | 952,819   |          
|                       |                                  | January                |       |                | 23.23 |       |       |                    | 20.62 |  |       |       | 23.23 |  |         |           | 1,123,040 | 
|                       |                                  | February               |       |                | 24.51 |       |       |                    | 23.06 |  |       |       | 24.15 |  |         |           | 1,096,226 | 
|                       |                                  | March                  |       |                | 24.56 |       |       |                    | 23.00 |  |       |       | 23.59 |  |         |           | 686,335   | 
|                       | Second Quarter (through June 26) |                        |       | 27.70          |       |       |       | 22.54              |       |  |       | 22.54 |       |  |         | 1,015,329 |          
|                       |                                  | April                  |       |                | 26.70 |       |       |                    | 23.31 |  |       |       | 26.70 |  |         |           | 874,747   | 
|                       |                                  | May                    |       |                | 27.70 |       |       |                    | 24.91 |  |       |       | 26.10 |  |         |           | 1,073,577 | 
|                       |                                  | June (through June 26) |       |                | 26.75 |       |       |                    | 22.54 |  |       |       | 22.54 |  |         |           | 1,097,071 | 








|    |                                                                                   
|--- | ----------------------------------------------------------------------------------
|(1) | Both high and low prices are based on the daily closing prices
    for the period.

99



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The Korean Securities Market




| |                        
| | -----------------------
| | The Korea Exchange Inc.











100



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##### Table of Contents





|                      |  |         |          |      |  |     |          |         |  |                |          |          |  |  |          |  |  |  |      |  |  |  |      | 
|--------------------- |  | ------- | -------- | ---- |  | --- | -------- | ------- |  | -------------- | -------- | -------- |  |  | -------- |  |  |  | ---- |  |  |  | ---- | 
|                      |  |         |          |      |  |     |          |         |  | 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   |  |  |  | 2.1  |  |  |  | 12.9 | 
|2001                  |  |         | 520.95   |      |  |     | 704.50   |         |  |                | 468.76   |          |  |  | 693.70   |  |  |  | 1.7  |  |  |  | 16.4 | 
|2002                  |  |         | 724.95   |      |  |     | 937.61   |         |  |                | 584.04   |          |  |  | 829.44   |  |  |  | 1.6  |  |  |  | 15.2 | 
|2003                  |  |         | 635.17   |      |  |     | 822.16   |         |  |                | 515.24   |          |  |  | 810.71   |  |  |  | 2.0  |  |  |  | 11.8 | 
|2004                  |  |         | 821.26   |      |  |     | 936.06   |         |  |                | 719.59   |          |  |  | 895.92   |  |  |  | 2.0  |  |  |  | 13.8 | 
|2005                  |  |         | 893.71   |      |  |     | 1,379.37 |         |  |                | 870.84   |          |  |  | 1,379.37 |  |  |  | 1.8  |  |  |  | 10.6 | 
|2006 (though June 26) |  |         | 1,383.32 |      |  |     | 1,469.70 |         |  |                | 1,192.09 |          |  |  | 1,238.05 |  |  |  | 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 W |  | to W        
|                               |  |             
|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 Trading Volume & Value
|                       |  |                                |     |                               
|                       |  | Number of                      |     |                                |  |              
|                       |  | Listed                         |     | (Millions of                   |  | (Thousands of |             | Thousands of |  | (Millions of |             | (Thousands of
|Year                   |  | Companies                      |     | Won)                           |  | Dollars)(1)   |             | 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                   |  |                                | 702 |                                |  |               | 655,074,595 |              |  |              | 648,588,707 |               |  |  | 467,629 |  |  |   | 3,157,662 |  |  |      | 3,126,398 | 
|2006 (through June 26) |  |                                | 717 |                                |  |               | 604,501,659 |              |  |              | 598,516,494 |               |  |  | 336,721 |  |  |   | 4,105,713 |  |  |      | 4,065,062 | 








|    |                                                                                                                                                                                    
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(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.



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| |                                                
| | -----------------------------------------------
| | Further Opening of the Korean Securities Market













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











104



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|         |                     
|-------- | --------------------
|Item 9D. | Selling Shareholders

Not applicable







|         |         
|-------- | --------
|Item 9E. | Dilution

Not applicable







|         |                      
|-------- | ---------------------
|Item 9F. | Expenses of the Issue

Not applicable







|         |                       
|-------- | ----------------------
|Item 10. | ADDITIONAL INFORMATION






|          |              
|--------- | -------------
|Item 10A. | Share Capital

Not applicable







|          |                                       
|--------- | --------------------------------------
|Item 10B. | Memorandum and Articles of Association

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;

105



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| |   |                                                                                                          
| | - | ---------------------------------------------------------------------------------------------------------
| |  | tourism; and                                                                                             
|
| |  | any business or undertaking incidental or conducive to the
    attainment of the objectives stated above.



Board of Directors






| |   |                                                                                                                                                                                                                             
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | 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






106



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Distribution of Free Shares




Preemptive Rights and Issuance of Additional Shares






107



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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




108



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









Rights of Dissenting Shareholders


20-day


109



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Registry of Shareholders and Record Dates






Annual Report






Transfer of Shares








Restrictions Applicable to Shares




110



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##### Table of Contents



Acquisition of Shares by Us






Liquidation Rights




Description of American Depositary Shares


F-3 333-91304)


American Depositary Receipts




111



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Deposit and Withdrawal of Shares of Common Stock












112



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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 ADSs 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.                                                                                                                                                                                                                                                                                                                                       





Dividends, Other Distributions and Rights








113



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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.                                               

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



Inspection of Transfer Books




Reports and Notices




115



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Changes Affecting Deposited Shares of Common Stock




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.



116



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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.                                                                                                                                           

General










117



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Governing Law








Information Relating to the ADR Depositary






10-K 10-Q. 10-K 10-Q







Item 10C.     Material
Contracts




118



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##### Table of Contents






Item 10D.     Exchange
Controls


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                                                                                                                
|
| |  | 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






| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Under current Korean laws and regulations, the depositary is
    required to obtain our prior consent for any proposed deposit of
    common shares if the number of shares to be deposited in such
    proposed deposit exceeds the number of common shares initially
    deposited by us 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 the ADSs).                                                  
|
| |  | 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
    Item 10B. Memorandum and Articles of
    Incorporation  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




119



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Restrictions Applicable to ADSs






Restrictions Applicable to Shares




120



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| |   |                                                                                                                                                                                                                                                            
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | 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.                                                                                                                                                                 

over-the


over-the




121



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Item 10E.Taxation


United States Taxation






| |   |                                                                                                                           
| | - | --------------------------------------------------------------------------------------------------------------------------
| |  | a dealer in securities or currencies;                                                                                     
|
| |  | a trader in securities that elects to use a
    mark-to-market method
    of accounting for securities holdings;          
|
| |  | a bank;                                                                                                                   
|
| |  | a life insurance company;                                                                                                 
|
| |  | a tax-exempt organization;                                                                                                
|
| |  | a person that holds common shares or ADSs that are a hedge or
    that are hedged against interest rate or currency risks;
|
| |  | a person that holds common shares or ADSs as part of a straddle
    or conversion transaction for tax purposes;           
|
| |  | a person whose functional currency for tax purposes is not the
    U.S. dollar; or                                        
|
| |  | a person that owns or is deemed to own 10% or more of any class
    of our stock.                                         









| |   |                                                                                                                            
| | - | ---------------------------------------------------------------------------------------------------------------------------
| |  | a citizen or resident of the United States;                                                                                
|
| |  | a U.S. domestic corporation; or                                                                                            
|
| |  | otherwise subject to U.S. federal income tax on a net
    income basis with respect to income from the common share or ADS.



123



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| |          
| | ---------
| | Dividends









| |                          
| | -------------------------
| | Sale or Other Disposition





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

16-day






124



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U.S. Information Reporting and Backup Withholding
Rules


U.S.-related non-U.S. U.S.-related


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


provided that






Taxation of Capital Gains




125



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Inheritance Tax And Gift Tax






Securities Transaction Tax




126



---



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Item 10F.Dividends and
Paying Agents


Not applicable





Item 10G.Statements by
Experts


Not applicable





Item 10H.Documents on
Display


20-F, 1-800-SEC-0330.




127



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Item 10I.Subsidiary
Information


Not applicable







|         |                                                               
|-------- | --------------------------------------------------------------
|Item 11. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET
    RISK

Exchange Rate and Interest Rate Risks






Exchange Rate Risk




Interest Rate Risk




|                         |           |                                                  |       |     |       |   |       |      |       |   |       |   |       |      |       |       |            |   |       |       |       |   |            |       |       |   |         |       |         |   |         |       |         | 
|------------------------ | --------- | ------------------------------------------------ | ----- | --- | ----- | - | ----- | ---- | ----- | - | ----- | - | ----- | ---- | ----- | ----- | ---------- | - | ----- | ----- | ----- | - | ---------- | ----- | ----- | - | ------- | ----- | ------- | - | ------- | ----- | ------- | 
|                         |           | Maturities                                       |      
|                         |           |                                                  |      
|                         |           | 2006                                             |       |     | 2007  |   |       | 2008 |       |   | 2009  |   |       | 2010 |       |       | Thereafter |   |       | Total |       |   | Fair Value |      
|                         |           |                                                  |       |     |       |   |       |      |       |   |       |   |       |      |       |       |            |   |       |       |       |   |            |      
|                         |           | (In billions of won, except for percentage data) |      
|Local currency:          |           |                                                  |       |     |       |   |       |      |       |   |       |   |       |      |       |       |            |   |       |       |       |   |            |       |       |   |         |       |         |   |         |      
|Fixed rate               |           | W                                                | 795.2 |     |       | W | 692.0 |      |       | W | 297.9 |   |       | W    | 297.8 |       |            | W | 194.6 |       |       | W | 189.3      |       |       | W | 2,466.7 |       |         | W | 2,509.5 |      
|Average weighted rate(1) |           |                                                  | 5.53  | %   |       |   | 5.57  | %    |       |   | 5.00  | % |       |      | 5.00  | %     |            |   | 4.00  | %     |       |   | 3.00       | %     |       |   |         |       |         |   |         |      
|Variable rate            |           |                                                  |      |     |       |   |      |      |       |   |      |   |       |      |      |       |            |   |      |       |       |   |           |       |       |   |         |       |         |   |         |      
|Average weighted rate(1) |           |                                                  |      |     |       |   |      |      |       |   |      |   |       |      |      |       |            |   |      |       |       |   |           |       |       |   |        |       |         |   |        |      
|                         |           |                                                  |       |     |       |   |       |      |       |   |       |   |       |      |       |       |            |   |       |       |       |   |            |      
|Sub-total                |           | W                                                | 795.2 |     |       | W | 692.0 |      |       | W | 297.9 |   |       | W    | 297.8 |       |            | W | 194.6 |       |       | W | 189.3      |       |       | W | 2,466.7 |       |         | W | 2,509.5 |      
|                         |           |                                                  |       |     |       |   |       |      |       |   |       |   |       |      |       |       |            |   |       |       |       |   |            |      
|Foreign currency:        |           |                                                  |       |     |       |   |       |      |       |   |       |   |       |      |       |       |            |   |       |       |       |   |            |       |       |   |         |       |         |   |         |      
|Fixed rate               |           |                                                  |      |     |       |   |      |      |       |   |      |   |       |      | 341.7 |       |            |   |      |       |       |   | 301.0      |       |       |   | 642.7   |       |         |   | 647.5   |      
|Average weighted rate(1) |           |                                                  |      |     |       |   |      |      |       |   |      |   |       |      | 0.00  | %     |            |   |      |       |       |   | 4.25       | %     |       |   |         |       |         |   |         |      
|Variable rate            |           |                                                  | 1.1   |     |       |   | 0.1   |      |       |   |      |   |       |      |      |       |            |   |      |       |       |   |           |       |       |   | 1.2     |       |         |   | 1.2     |      
|Average weighted rate(1) |           |                                                  | 3.34  | %   |       |   | 3.39  | %    |       |   | 3.39  | % |       |      | 3.39  | %     |            |   |      |       |       |   |           |       |       |   |         |       |         |   |         |      
|                         |           |                                                  |       |     |       |   |       |      |       |   |       |   |       |      |       |       |            |   |       |       |       |   |            |      
|                         | Sub-total |                                                  | W     | 1.1 |       |   | W     | 0.1  |       |   | W     |  |       |      | W     | 341.7 |            |   | W     |      |       |   | W          | 301.0 |       |   | W       | 643.9 |         |   | W       | 648.7 |        
|                         |           |                                                  |       |     |       |   |       |      |       |   |       |   |       |      |       |       |            |   |       |       |       |   |            |      
|                         |           | Total                                            |       | W   | 796.3 |   |       | W    | 692.1 |   |       | W | 297.9 |      |       | W     | 639.5      |   |       | W     | 194.6 |   |            | W     | 490.3 |   |         | W     | 3,110.6 |   |         | W     | 3,158.2 | 
|                         |           |                                                  |       |     |       |   |       |      |       |   |       |   |       |      |       |       |            |   |       |       |       |   |            |      






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

128



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|         |                                                           
|-------- | ----------------------------------------------------------
|Item 12. | DESCRIPTION OF SECURITIES OTHER THAN EQUITY
    SECURITIES

Not applicable.







|         |                                                
|-------- | -----------------------------------------------
|Item 13. | DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES

None.







|         |                                                                                 
|-------- | --------------------------------------------------------------------------------
|Item 14. | MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS
    AND USE OF PROCEEDS

None.







|         |                        
|-------- | -----------------------
|Item 15. | CONTROLS AND PROCEDURES

.








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Item 16A.Audit
Committee Financial Expert







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,        
|               |       |                     
|               |       | 2005                 |       | 2004   
|               |       |                      |       |        
|               |       | (In millions of won)
|Audit          |       | W                    | 838.9 |         |  | W | 841.3   |        
|Audit Related  |       | W                    | 86.7  |         |  | W | 127.7   |        
|Tax            |       | W                    | 139.4 |         |  | W | 110.1   |        
|All Other Fees |       | W                    | 900.0 |         |  | W | 2,418.0 |        
|               | Total |                      | W     | 1,965.0 |  |   | W       | 3,497.1 | 









Pre-Approval of Audit and Non-Audit Services Provided by
Independent Registered Public Accounting Firm




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de minimis 2-01 S-X





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


Not applicable.





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




10b-18(a)(3)


|          |       |                 |    |            |  |                     |         |                      |  |  |   |   |  |  |   |   | 
|--------- | ----- | --------------- | -- | ---------- |  | ------------------- | ------- | -------------------- |  |  | - | - |  |  | - | - | 
|          |       |                 |    |            |  | Total Number of     |         |                     
|          |       |                 |    |            |  | Shares Purchased    |         | Maximum Number of   
|          |       | Total Number of |    | Average    |  | as Part of Publicly |         | Shares That May yet 
|          |       | Shares          |    | Price Paid |  | Announced Plans or  |         | be Purchased Under  
|Period    |       | Purchased       |    | per Share  |  | Program             |         | the Plans or Program
|          |       |                 |    |            |  |                     |         |                     
|2004      |       |                 |    |            |  |                     |         |                      |  |  |   |   |  |  |   |  
|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       | 173,500              |  |  |   |  |  |  |   |  | 





131



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|         |                     
|-------- | --------------------
|Item 17. | FINANCIAL STATEMENTS

Not applicable.







|         |                     
|-------- | --------------------
|Item 18. | FINANCIAL STATEMENTS

|                                                                                                                    |  |  |  |     
|------------------------------------------------------------------------------------------------------------------- |  |  |  | ----
|Report of Independent Registered Public Accounting Firm                                                             |  |  |  | F-3 
|Consolidated balance sheets as of December 31, 2004 and 2005                                                        |  |  |  | F-4 
|Consolidated statements of income for the years ended
    December 31, 2003, 2004 and 2005                          |  |  |  | F-6 
|Consolidated statements of changes in stockholders equity
    for the years ended December 31, 2003, 2004 and 2005 |  |  |  | F-8 
|Consolidated statements of cash flows for the years ended
    December 31, 2003, 2004 and 2005                      |  |  |  | F-10
|Notes to consolidated financial statements                                                                          |  |  |  | F-14

132



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Item 19.EXHIBITS


|       |    |             |  |                                                                                                                                                                                                                                                                                                                                                                
|------ | -- | ----------- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Number |    | Description
|       |    |            
|       | 1  | .1          |  | Memorandum and Articles of Association                                                                                                                                                                                                                                                                                                                         
|       | 2  | .1          |  | Deposit Agreement dated as of May 31, 1996, as amended by
    Amendment No. 1 dated as of March 15, 1999, Amendment
    No. 2 dated as of April 24, 2000 and Amendment
    No. 3 dated as of July 24, 2002, entered into among SK
    Telecom Co., Ltd., Citibank, N.A., as Depositary, and all
    Holders and Beneficial Owners of American Depositary Shares
|       | 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          |  | Korean Commercial Code (together with English translation)*                                                                                                                                                                                                                                                                                                    
|       | 4  | .6          |  | Amendment to Korean Commercial Code dated December 29, 2001
    (together with English translation)**                                                                                                                                                                                                                                                          
|       | 4  | .7          |  | Korean Securities and Exchange Act, as amended (English
    translation)                                                                                                                                                                                                                                                                                       
|       | 8  | .1          |  | List of Subsidiaries of SK Telecom Co., Ltd.                                                                                                                                                                                                                                                                                                                   
|       | 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 Anjin LLC                                                                                                                                                                                                                                                                                                                                  




|    |  |                                                                          
|--- |  | -------------------------------------------------------------------------
|*   |  | Filed previously as exhibits to our Form 20-F filed on
    June 30, 2000.
|**  |  | Filed previously as exhibits to our Form 20-F filed on
    June 28, 2002.
|*** |  | Filed previously as exhibits to our Form 20-F filed on
    May 31, 2005. 

133



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INDEX TO FINANCIAL STATEMENTS


|                                                                                                                    |  |     
|------------------------------------------------------------------------------------------------------------------- |  | ----
|REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM                                                             |  | F-3 
|CONSOLIDATED BALANCE SHEETS AS OF DECEMBER 31, 2004 AND 2005                                                        |  | F-4 
|CONSOLIDATED STATEMENTS OF INCOME FOR THE YEARS ENDED
    DECEMBER 31, 2003, 2004 AND 2005                          |  | F-6 
|CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS EQUITY
    FOR THE YEARS ENDED DECEMBER 31, 2003, 2004 AND 2005 |  | F-8 
|CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED
    DECEMBER 31, 2003, 2004 AND 2005                      |  | F-10
|NOTES TO CONSOLIDATED FINANCIAL STATEMENTS                                                                          |  | F-14

F-1



---



##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


CONSOLIDATED FINANCIAL STATEMENTS


FOR THE YEARS ENDED DECEMBER 31, 2003, 2004 AND 2005
AND


REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM


F-2



---



##### Table of Contents



REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM


























F-3



---



##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


CONSOLIDATED BALANCE SHEETS


December 31, 2003, 2004 and 2005


|                    |                                                                                                                                                                                                                |                             |            |              |                  |   |            |           |           |   |            |           |            |   |            |           |            | 
|------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------- | ---------- | ------------ | ---------------- | - | ---------- | --------- | --------- | - | ---------- | --------- | ---------- | - | ---------- | --------- | ---------- | 
|                    |                                                                                                                                                                                                                | 2003                        |            |              | 2004             |   |            | 2005      |           |   | 2005       |          
|                    |                                                                                                                                                                                                                |                             |            |              |                  |   |            |           |           |   |            |          
|                    |                                                                                                                                                                                                                | (In millions of Korean won) |            |              | (In thousands of |  
|                    |                                                                                                                                                                                                                |                             |            | U.S. dollars |                 
|                    |                                                                                                                                                                                                                |                             |            | (Note 2(a))) |                 
|ASSETS             
|CURRENT ASSETS:     |                                                                                                                                                                                                                |                             |            |              |                  |   |            |           |           |   |            |           |            |   |            |          
|                    | Cash and cash equivalents (Notes 2 and 13)                                                                                                                                                                     |                             | W          | 317,488      |                  |   | W          | 370,630   |           |   | W          | 378,426   |            |   | $          | 374,679   |           
|                    | Short-term financial instruments (Notes 13, 21 and 22)                                                                                                                                                         |                             |            | 154,922      |                  |   |            | 12,730    |           |   |            | 106,592   |            |   |            | 105,537   |           
|                    | Trading securities (Notes 2 and 4)                                                                                                                                                                             |                             |            | 893,217      |                  |   |            | 654,779   |           |   |            | 777,472   |            |   |            | 769,774   |           
|                    | Current portion of long-term investment securities (Notes 2
    and 4)                                                                                                                                         |                             |            | 85,861       |                  |   |            | 3,709     |           |   |            | 1         |            |   |            | 1         |           
|                    | Accounts receivable  trade, net of allowance for
    doubtful accounts of W65,327 million,
    W71,090 million and W133,499 million at December 31, 2003, 2004
    and 2005, respectively (Notes 2,13 and 24) |                             |            | 1,579,153    |                  |   |            | 1,720,201 |           |   |            | 1,684,119 |            |   |            | 1,667,445 |           
|                    | Short-term loans, net of allowance for doubtful accounts of
    W516 million, W564 million and W1,350 million at December 31, 2003, 2004 and
    2005, respectively (Notes 2 and 6)                            |                             |            | 48,849       |                  |   |            | 55,355    |           |   |            | 65,539    |            |   |            | 64,890    |           
|                    | Accounts receivable  other, net of allowance for
    doubtful accounts of W16,768 million,
    W15,622 million and W17,526 million at December 31, 2003, 2004
    and 2005, respectively (Notes 2, 13 and 24) |                             |            | 867,120      |                  |   |            | 1,406,553 |           |   |            | 1,369,691 |            |   |            | 1,356,130 |           
|                    | Inventories, net (Notes 2, 3, 23 and 24)                                                                                                                                                                       |                             |            | 31,516       |                  |   |            | 52,321    |           |   |            | 7,784     |            |   |            | 7,707     |           
|                    | Prepaid expenses                                                                                                                                                                                               |                             |            | 68,256       |                  |   |            | 84,933    |           |   |            | 104,124   |            |   |            | 103,093   |           
|                    | Current deferred income tax assets (Notes 2 and 18)                                                                                                                                                            |                             |            |             |                  |   |            |          |           |   |            | 66,117    |            |   |            | 65,462    |           
|                    | Accrued income and other                                                                                                                                                                                       |                             |            | 23,143       |                  |   |            | 29,482    |           |   |            | 38,715    |            |   |            | 38,331    |           
|                    |                                                                                                                                                                                                                |                             |            |              |                  |   |            |           |           |   |            |          
|                    |                                                                                                                                                                                                                | Total Current Assets        |            |              | 4,069,525        |   |            |           | 4,390,693 |   |            |           | 4,598,580  |   |            |           | 4,553,049  | 
|                    |                                                                                                                                                                                                                |                             |            |              |                  |   |            |           |           |   |            |          
|NON-CURRENT ASSETS: |                                                                                                                                                                                                                |                             |            |              |                  |   |            |           |           |   |            |           |            |   |            |          
|                    | Property and equipment, net (Notes 2, 7, 12, 22,
    23 and 24)                                                                                                                                                |                             |            | 4,641,547    |                  |   |            | 4,703,922 |           |   |            | 4,663,369 |            |   |            | 4,617,197 |           
|                    | Intangible assets, net (Notes 2 and 8)                                                                                                                                                                         |                             |            | 3,674,944    |                  |   |            | 3,522,903 |           |   |            | 3,452,889 |            |   |            | 3,418,702 |           
|                    | Long-term investment securities (Notes 2 and 4)                                                                                                                                                                |                             |            | 879,193      |                  |   |            | 948,101   |           |   |            | 1,220,208 |            |   |            | 1,208,127 |           
|                    | Equity securities accounted for using the equity method
    (Notes 2 and 5)                                                                                                                                    |                             |            | 183,709      |                  |   |            | 304,028   |           |   |            | 471,879   |            |   |            | 467,207   |           
|                    | Long-term bank deposits (Note 21)                                                                                                                                                                              |                             |            | 352          |                  |   |            | 10,351    |           |   |            | 1,479     |            |   |            | 1,464     |           
|                    | Long-term loans, net of allowance for doubtful accounts of
    W19,552 million, W19,273 million and W19,130 million at December 31, 2003, 2004
    and 2005, respectively (Notes 2 and 6)                      |                             |            | 40,819       |                  |   |            | 30,442    |           |   |            | 18,430    |            |   |            | 18,248    |           
|                    | Guarantee deposits (Notes 13 and 24)                                                                                                                                                                           |                             |            | 270,255      |                  |   |            | 289,015   |           |   |            | 168,559   |            |   |            | 166,890   |           
|                    | Non-current deferred income tax assets (Notes 2 and 18)                                                                                                                                                        |                             |            |             |                  |   |            |          |           |   |            | 1,495     |            |   |            | 1,480     |           
|                    | Other                                                                                                                                                                                                          |                             |            | 57,873       |                  |   |            | 83,903    |           |   |            | 107,884   |            |   |            | 106,816   |           
|                    |                                                                                                                                                                                                                |                             |            |              |                  |   |            |           |           |   |            |          
|                    |                                                                                                                                                                                                                | Total Non-Current Assets    |            |              | 9,748,692        |   |            |           | 9,892,665 |   |            |           | 10,106,192 |   |            |           | 10,006,131 | 
|                    |                                                                                                                                                                                                                |                             |            |              |                  |   |            |           |           |   |            |          
|TOTAL ASSETS        |                                                                                                                                                                                                                | W                           | 13,818,217 |              |                  | W | 14,283,358 |           |           | W | 14,704,772 |           |            | $ | 14,559,180 |          
|                    |                                                                                                                                                                                                                |                             |            |              |                  |   |            |           |           |   |            |          

F-4



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##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


CONSOLIDATED BALANCE SHEETS  (Continued)


December 31, 2003, 2004 and 2005


|                                           |                                                                                                                                                                                      |                                                                                                   |            |              |                  |   |            |           |            |   |            |           |            |   |            |           |            |  
|------------------------------------------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ------------------------------------------------------------------------------------------------- | ---------- | ------------ | ---------------- | - | ---------- | --------- | ---------- | - | ---------- | --------- | ---------- | - | ---------- | --------- | ---------- | -
|                                           |                                                                                                                                                                                      | 2003                                                                                              |            |              | 2004             |   |            | 2005      |            |   | 2005       |          
|                                           |                                                                                                                                                                                      |                                                                                                   |            |              |                  |   |            |           |            |   |            |          
|                                           |                                                                                                                                                                                      | (In millions of Korean won)                                                                       |            |              | (In thousands of |  
|                                           |                                                                                                                                                                                      |                                                                                                   |            | U.S. dollars |                 
|                                           |                                                                                                                                                                                      |                                                                                                   |            | (Note 2(a))) |                 
|LIABILITIES AND SHAREHOLDERS EQUITY      
|CURRENT LIABILITIES:                       |                                                                                                                                                                                      |                                                                                                   |            |              |                  |   |            |           |            |   |            |           |            |   |            |          
|                                           | Accounts payable (Notes 13, 22 and 24)                                                                                                                                               |                                                                                                   | W          | 1,317,162    |                  |   | W          | 1,205,682 |            |   | W          | 1,047,779 |            |   | $          | 1,037,405 |           
|                                           | Short-term borrowings (Notes 13 and 22)                                                                                                                                              |                                                                                                   |            | 786,096      |                  |   |            | 425,496   |            |   |            | 972       |            |   |            | 962       |           
|                                           | Income taxes payable                                                                                                                                                                 |                                                                                                   |            | 402,559      |                  |   |            | 273,495   |            |   |            | 370,822   |            |   |            | 367,150   |           
|                                           | Accrued expenses (Notes 2, 13 and 25)                                                                                                                                                |                                                                                                   |            | 420,995      |                  |   |            | 394,354   |            |   |            | 364,830   |            |   |            | 361,218   |           
|                                           | Dividend payable                                                                                                                                                                     |                                                                                                   |            | 88           |                  |   |            | 263       |            |   |            | 298       |            |   |            | 295       |           
|                                           | Withholdings                                                                                                                                                                         |                                                                                                   |            | 184,304      |                  |   |            | 196,534   |            |   |            | 216,622   |            |   |            | 214,477   |           
|                                           | Current portion of long-term debt, net (Notes 9, 10 and 12)                                                                                                                          |                                                                                                   |            | 1,364,264    |                  |   |            | 498,278   |            |   |            | 809,573   |            |   |            | 801,557   |           
|                                           | Current portion of subscription deposits (Note 11)                                                                                                                                   |                                                                                                   |            | 12,881       |                  |   |            | 13,405    |            |   |            | 14,875    |            |   |            | 14,728    |           
|                                           | Current deferred income tax liabilities (Notes 2 and 18)                                                                                                                             |                                                                                                   |            |             |                  |   |            |          |            |   |            | 44        |            |   |            | 44        |           
|                                           | Other                                                                                                                                                                                |                                                                                                   |            | 42,561       |                  |   |            | 59,386    |            |   |            | 37,558    |            |   |            | 37,187    |           
|                                           |                                                                                                                                                                                      |                                                                                                   |            |              |                  |   |            |           |            |   |            |          
|                                           |                                                                                                                                                                                      | Total Current Liabilities                                                                         |            |              | 4,530,910        |   |            |           | 3,066,893  |   |            |           | 2,863,373  |   |            |           | 2,835,023  |  
|                                           |                                                                                                                                                                                      |                                                                                                   |            |              |                  |   |            |           |            |   |            |          
|LONG-TERM LIABILITIES:                     |                                                                                                                                                                                      |                                                                                                   |            |              |                  |   |            |           |            |   |            |           |            |   |            |          
|                                           | Bonds payable, net (Notes 2 and 9)                                                                                                                                                   |                                                                                                   |            | 2,261,868    |                  |   |            | 2,891,843 |            |   |            | 2,314,208 |            |   |            | 2,291,295 |           
|                                           | Long-term borrowings (Notes 10 and 22)                                                                                                                                               |                                                                                                   |            | 1,633        |                  |   |            |          |            |   |            | 155       |            |   |            | 153       |           
|                                           | Subscription deposits (Note 11)                                                                                                                                                      |                                                                                                   |            | 44,197       |                  |   |            | 31,440    |            |   |            | 23,770    |            |   |            | 23,535    |           
|                                           | Long-term payables  other, net of present value
    discount of W85,881 million, W72,663 million and W58,413 million at December 31, 2003, 2004
    and 2005, respectively (Note 2) |                                                                                                   |            | 564,119      |                  |   |            | 577,337   |            |   |            | 591,587   |            |   |            | 585,730   |           
|                                           | Obligations under capital leases (Notes 2, 12 and 13)                                                                                                                                |                                                                                                   |            |             |                  |   |            |          |            |   |            | 10,204    |            |   |            | 10,103    |           
|                                           | Accrued severance indemnities, net (Note 2)                                                                                                                                          |                                                                                                   |            | 67,824       |                  |   |            | 80,984    |            |   |            | 71,284    |            |   |            | 70,578    |           
|                                           | Non-current deferred income tax liabilities (Notes 2 and 18)                                                                                                                         |                                                                                                   |            | 226,029      |                  |   |            | 306,052   |            |   |            | 401,156   |            |   |            | 397,184   |           
|                                           | Long-term currency swap (Notes 2 and 26)                                                                                                                                             |                                                                                                   |            |             |                  |   |            | 96,743    |            |   |            | 73,450    |            |   |            | 72,723    |           
|                                           | Guarantee deposits received and other (Notes 22 and 24)                                                                                                                              |                                                                                                   |            | 27,790       |                  |   |            | 26,322    |            |   |            | 28,045    |            |   |            | 27,767    |           
|                                           |                                                                                                                                                                                      |                                                                                                   |            |              |                  |   |            |           |            |   |            |          
|                                           |                                                                                                                                                                                      | Total Long-Term Liabilities                                                                       |            |              | 3,193,460        |   |            |           | 4,010,721  |   |            |           | 3,513,859  |   |            |           | 3,479,068  |  
|                                           |                                                                                                                                                                                      |                                                                                                   |            |              |                  |   |            |           |            |   |            |          
|                                           |                                                                                                                                                                                      | Total Liabilities                                                                                 |            |              | 7,724,370        |   |            |           | 7,077,614  |   |            |           | 6,377,232  |   |            |           | 6,314,091  |  
|                                           |                                                                                                                                                                                      |                                                                                                   |            |              |                  |   |            |           |            |   |            |          
|COMMITMENTS AND CONTINGENCIES (Note 22)    |                                                                                                                                                                                      |                                                                                                   |            |              |                  |   |            |           |            |   |            |           |            |   |            |          
|SHAREHOLDERS EQUITY:                      |                                                                                                                                                                                      |                                                                                                   |            |              |                  |   |            |           |            |   |            |           |            |   |            |          
|                                           | Capital stock (Notes 1 and 14)                                                                                                                                                       |                                                                                                   |            | 44,639       |                  |   |            | 44,639    |            |   |            | 44,639    |            |   |            | 44,197    |           
|                                           | Capital surplus (Note 14)                                                                                                                                                            |                                                                                                   |            | 2,911,556    |                  |   |            | 2,968,301 |            |   |            | 2,954,840 |            |   |            | 2,925,584 |           
|                                           | Retained earnings (Note 15)                                                                                                                                                          |                                                                                                   |            | 5,139,911    |                  |   |            | 6,152,898 |            |   |            | 7,267,649 |            |   |            | 7,195,692 |           
|                                           | Capital adjustments:                                                                                                                                                                 |                                                                                                   |            |              |                  |   |            |           |            |   |            |           |            |   |            |           |           
|                                           |                                                                                                                                                                                      | Treasury stock (Note 16)                                                                          |            |              | (2,047,103       | ) |            |           | (2,047,105 | ) |            |           | (2,047,105 | ) |            |           | (2,026,837 | )
|                                           |                                                                                                                                                                                      | Unrealized profit (loss) on valuation of long-term investment
    securities, net (Notes 2 and 4) |            |              | (160,622         | ) |            |           | (92,975    | ) |            |           | (42,093    | ) |            |           | (41,676    | )
|                                           |                                                                                                                                                                                      | Equity in capital adjustment of affiliates, net (Notes 2
    and 5)                               |            |              | 42,581           |   |            |           | 134,376    |   |            |           | 61,368     |   |            |           | 60,760     |  
|                                           |                                                                                                                                                                                      | Loss on valuation of currency swap, net (Notes 2 and 26)                                          |            |              |                 |   |            |           | (49,452    | ) |            |           | (14,177    | ) |            |           | (14,037    | )
|                                           |                                                                                                                                                                                      | Stock options (Notes 2 and 17)                                                                    |            |              | 3,741            |   |            |           | 4,833      |   |            |           | 3,480      |   |            |           | 3,446      |  
|                                           |                                                                                                                                                                                      | Foreign-based operations translation adjustment
    (Note 2)                                     |            |              | 3,159            |   |            |           | (7,969     | ) |            |           | (9,988     | ) |            |           | (9,889     | )
|                                           | Minority interest in equity of consolidated subsidiaries
    (Note 2)                                                                                                                |                                                                                                   |            | 155,985      |                  |   |            | 98,198    |            |   |            | 108,927   |            |   |            | 107,849   |           
|                                           |                                                                                                                                                                                      |                                                                                                   |            |              |                  |   |            |           |            |   |            |          
|                                           |                                                                                                                                                                                      | Total Shareholders Equity                                                                        |            |              | 6,093,847        |   |            |           | 7,205,744  |   |            |           | 8,327,540  |   |            |           | 8,245,089  |  
|                                           |                                                                                                                                                                                      |                                                                                                   |            |              |                  |   |            |           |            |   |            |          
|TOTAL LIABILITIES AND SHAREHOLDERS EQUITY |                                                                                                                                                                                      | W                                                                                                 | 13,818,217 |              |                  | W | 14,283,358 |           |            | W | 14,704,772 |           |            | $ | 14,559,180 |          
|                                           |                                                                                                                                                                                      |                                                                                                   |            |              |                  |   |            |           |            |   |            |          



F-5



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##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


CONSOLIDATED STATEMENTS OF INCOME


Years Ended December 31, 2003, 2004 AND 2005


|                                        |                                                                                      |                              |            |                      |                      |   |            |                  |   |   |            |            |   |   |            |            |  
|--------------------------------------- | ------------------------------------------------------------------------------------ | ---------------------------- | ---------- | -------------------- | -------------------- | - | ---------- | ---------------- | - | - | ---------- | ---------- | - | - | ---------- | ---------- | -
|                                        |                                                                                      | 2003                         |            |                      | 2004                 |   |            | 2005             |   |   | 2005       |           
|                                        |                                                                                      |                              |            |                      |                      |   |            |                  |   |   |            |           
|                                        |                                                                                      |                              |            |                      |                      |   |            | (In thousands of |  
|                                        |                                                                                      |                              |            | U.S. dollars, except |                     
|                                        |                                                                                      | (In millions of Korean won,  |            |                      | for income per share |  
|                                        |                                                                                      | except for income per share) |            |                      | (Note 2(a)))         |  
|OPERATING REVENUE (Notes 2, 24 and 28)  |                                                                                      | W                            | 10,272,081 |                      |                      | W | 10,570,615 |                  |   | W | 10,721,820 |            |   | $ | 10,615,663 |           
|OPERATING EXPENSES (Notes 2, 22 and 24) |                                                                                      |                              |            |                      |                      |   |            |                  |   |   |            |            |   |   |            |           
|                                        | Labor cost                                                                           |                              |            | (407,243             | )                    |   |            | (464,778         | ) |   |            | (464,764   | ) |   |            | (460,162   | )
|                                        | Commissions paid                                                                     |                              |            | (2,314,558           | )                    |   |            | (2,812,318       | ) |   |            | (2,859,638 | ) |   |            | (2,831,325 | )
|                                        | Depreciation and amortization (Notes 7 and 8)                                        |                              |            | (1,510,545           | )                    |   |            | (1,607,478       | ) |   |            | (1,546,285 | ) |   |            | (1,530,975 | )
|                                        | Network interconnection (Note 28)                                                    |                              |            | (771,553             | )                    |   |            | (913,688         | ) |   |            | (989,417   | ) |   |            | (979,621   | )
|                                        | Leased line                                                                          |                              |            | (306,527             | )                    |   |            | (375,227         | ) |   |            | (407,043   | ) |   |            | (403,013   | )
|                                        | Advertising                                                                          |                              |            | (376,424             | )                    |   |            | (352,877         | ) |   |            | (279,390   | ) |   |            | (276,624   | )
|                                        | Research and development (Note 2)                                                    |                              |            | (235,551             | )                    |   |            | (267,107         | ) |   |            | (252,046   | ) |   |            | (249,550   | )
|                                        | Rent                                                                                 |                              |            | (144,509             | )                    |   |            | (178,310         | ) |   |            | (190,134   | ) |   |            | (188,251   | )
|                                        | Frequency usage                                                                      |                              |            | (129,525             | )                    |   |            | (143,047         | ) |   |            | (156,098   | ) |   |            | (154,552   | )
|                                        | Repair                                                                               |                              |            | (96,464              | )                    |   |            | (112,094         | ) |   |            | (131,719   | ) |   |            | (130,415   | )
|                                        | Provision for bad debts                                                              |                              |            | (22,378              | )                    |   |            | (29,181          | ) |   |            | (112,792   | ) |   |            | (111,675   | )
|                                        | Cost of goods sold                                                                   |                              |            | (560,859             | )                    |   |            | (479,257         | ) |   |            | (240,746   | ) |   |            | (238,362   | )
|                                        | Other                                                                                |                              |            | (290,838             | )                    |   |            | (395,504         | ) |   |            | (421,132   | ) |   |            | (416,964   | )
|                                        |                                                                                      |                              |            |                      |                      |   |            |                  |   |   |            |           
|                                        | Sub-total                                                                            |                              |            | (7,166,974           | )                    |   |            | (8,130,866       | ) |   |            | (8,051,204 | ) |   |            | (7,971,489 | )
|                                        |                                                                                      |                              |            |                      |                      |   |            |                  |   |   |            |           
|OPERATING INCOME                        |                                                                                      |                              | 3,105,107  |                      |                      |   | 2,439,749  |                  |   |   | 2,670,616  |            |   |   | 2,644,174  |           
|                                        |                                                                                      |                              |            |                      |                      |   |            |                  |   |   |            |           
|OTHER INCOME:                           |                                                                                      |                              |            |                      |                      |   |            |                  |   |   |            |            |   |   |            |           
|                                        | Interest income (Note 4)                                                             |                              |            | 86,485               |                      |   |            | 80,459           |   |   |            | 61,143     |   |   |            | 60,538     |  
|                                        | Dividends                                                                            |                              |            | 25,923               |                      |   |            | 23,843           |   |   |            | 26,515     |   |   |            | 26,252     |  
|                                        | Commissions                                                                          |                              |            | 80,180               |                      |   |            | 26,891           |   |   |            | 32,738     |   |   |            | 32,414     |  
|                                        | Equity in earnings of affiliates (Notes 2 and 5)                                     |                              |            |                     |                      |   |            |                 |   |   |            | 20,949     |   |   |            | 20,742     |  
|                                        | Foreign exchange and translation gains (Note 2)                                      |                              |            | 6,131                |                      |   |            | 20,559           |   |   |            | 4,167      |   |   |            | 4,126      |  
|                                        | Reversal of allowance for doubtful accounts                                          |                              |            | 1,555                |                      |   |            | 759              |   |   |            | 450        |   |   |            | 446        |  
|                                        | Gain on disposal and valuation of trading securities
    (Note 2)                    |                              |            | 188                  |                      |   |            | 2,548            |   |   |            | 1          |   |   |            | 1          |  
|                                        | Gain on disposal of investment assets (Notes 4 and 5)                                |                              |            | 1,259                |                      |   |            | 2,004            |   |   |            | 24,613     |   |   |            | 24,369     |  
|                                        | Gain on disposal of consolidated subsidiary (Note 5)                                 |                              |            |                     |                      |   |            |                 |   |   |            | 178,689    |   |   |            | 176,920    |  
|                                        | Gain on disposal of property, equipment and intangible assets                        |                              |            | 2,750                |                      |   |            | 2,067            |   |   |            | 4,693      |   |   |            | 4,647      |  
|                                        | Gain on transactions and valuation of currency forward and swap
    (Notes 2 and 26) |                              |            |                     |                      |   |            | 2,850            |   |   |            | 2,578      |   |   |            | 2,552      |  
|                                        | Other                                                                                |                              |            | 56,973               |                      |   |            | 37,439           |   |   |            | 36,016     |   |   |            | 35,659     |  
|                                        |                                                                                      |                              |            |                      |                      |   |            |                  |   |   |            |           
|                                        | Sub-total                                                                            |                              |            | 261,444              |                      |   |            | 199,419          |   |   |            | 392,552    |   |   |            | 388,666    |  
|                                        |                                                                                      |                              |            |                      |                      |   |            |                  |   |   |            |           

F-6



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##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


CONSOLIDATED STATEMENTS OF
INCOME  (Continued)


Years Ended December 31, 2003, 2004 AND 2005


|                                                                                   |                                                                                           |                              |           |                      |                      |   |           |                  |   |   |           |          |   |   |           |          |  
|---------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------- | ---------------------------- | --------- | -------------------- | -------------------- | - | --------- | ---------------- | - | - | --------- | -------- | - | - | --------- | -------- | -
|                                                                                   |                                                                                           | 2003                         |           |                      | 2004                 |   |           | 2005             |   |   | 2005      |         
|                                                                                   |                                                                                           |                              |           |                      |                      |   |           |                  |   |   |           |         
|                                                                                   |                                                                                           |                              |           |                      |                      |   |           | (In thousands of |  
|                                                                                   |                                                                                           |                              |           | U.S. dollars, except |                     
|                                                                                   |                                                                                           | (In millions of Korean won,  |           |                      | for income per share |  
|                                                                                   |                                                                                           | except for income per share) |           |                      | (Note 2(a)))         |  
|OTHER EXPENSES:                                                                    |                                                                                           |                              |           |                      |                      |   |           |                  |   |   |           |          |   |   |           |         
|                                                                                   | Interest and discounts                                                                    |                              |           | (391,482             | )                    |   |           | (303,410         | ) |   |           | (253,472 | ) |   |           | (250,962 | )
|                                                                                   | Donations                                                                                 |                              |           | (91,487              | )                    |   |           | (89,232          | ) |   |           | (145,325 | ) |   |           | (143,886 | )
|                                                                                   | Equity in losses of affiliates (Notes 2 and 5)                                            |                              |           | (6,975               | )                    |   |           | (11,954          | ) |   |           | (71,825  | ) |   |           | (71,114  | )
|                                                                                   | Foreign exchange and translation losses (Note 2)                                          |                              |           | (10,230              | )                    |   |           | (9,074           | ) |   |           | (4,178   | ) |   |           | (4,137   | )
|                                                                                   | Loss on disposal and valuation of trading securities
    (Note 2)                         |                              |           | (3,974               | )                    |   |           | (232             | ) |   |           | (16      | ) |   |           | (16      | )
|                                                                                   | Loss on disposal of investment assets                                                     |                              |           | (45,403              | )                    |   |           | (1,539           | ) |   |           | (4,017   | ) |   |           | (3,977   | )
|                                                                                   | Loss on disposal and impairment of property, equipment and
    intangible assets (Note 2) |                              |           | (13,784              | )                    |   |           | (19,208          | ) |   |           | (6,783   | ) |   |           | (6,716   | )
|                                                                                   | Loss on impairment of long-term investment securities
    (Notes 2 and 4)                 |                              |           | (5,749               | )                    |   |           | (33,654          | ) |   |           | (3,422   | ) |   |           | (3,388   | )
|                                                                                   | Loss on transactions and valuation of currency forward and swap
    (Notes 2 and 26)      |                              |           |                     |                      |   |           | (15,818          | ) |   |           |         |   |   |           |         |  
|                                                                                   | Other                                                                                     |                              |           | (43,131              | )                    |   |           | (31,872          | ) |   |           | (12,564  | ) |   |           | (12,440  | )
|                                                                                   |                                                                                           |                              |           |                      |                      |   |           |                  |   |   |           |         
|                                                                                   | Sub-total                                                                                 |                              |           | (612,215             | )                    |   |           | (515,993         | ) |   |           | (501,602 | ) |   |           | (496,636 | )
|                                                                                   |                                                                                           |                              |           |                      |                      |   |           |                  |   |   |           |         
|INCOME BEFORE INCOME TAXES AND MINORITY INTEREST                                   |                                                                                           |                              | 2,754,336 |                      |                      |   | 2,123,175 |                  |   |   | 2,561,566 |          |   |   | 2,536,204 |         
|INCOME TAXES (Notes 2 and 18)                                                      |                                                                                           |                              | (789,059  | )                    |                      |   | (629,761  | )                |   |   | (693,259  | )        |   |   | (686,395  | )       
|                                                                                   |                                                                                           |                              |           |                      |                      |   |           |                  |   |   |           |         
|INCOME BEFORE MINORITY INTEREST                                                    |                                                                                           |                              | 1,965,277 |                      |                      |   | 1,493,414 |                  |   |   | 1,868,307 |          |   |   | 1,849,809 |         
|MINORITY INTEREST IN NET LOSS (GAIN) OF CONSOLIDATED SUBSIDIARIES                  |                                                                                           |                              | 823       |                      |                      |   | (1,935    | )                |   |   | 4,671     |          |   |   | 4,625     |         
|                                                                                   |                                                                                           |                              |           |                      |                      |   |           |                  |   |   |           |         
|NET INCOME                                                                         |                                                                                           | W                            | 1,966,100 |                      |                      | W | 1,491,479 |                  |   | W | 1,872,978 |          |   | $ | 1,854,434 |         
|                                                                                   |                                                                                           |                              |           |                      |                      |   |           |                  |   |   |           |         
|NET INCOME PER SHARE (Notes 2 and 19) (In Korean
    won and U.S. dollars)         |                                                                                           | W                            | 26,187    |                      |                      | W | 20,261    |                  |   | W | 25,443    |          |   | $ | 25.19     |         
|                                                                                   |                                                                                           |                              |           |                      |                      |   |           |                  |   |   |           |         
|DILUTED NET INCOME PER SHARE (Notes 2 and 19) (In Korean
    won and U.S. dollars) |                                                                                           | W                            | 26,187    |                      |                      | W | 20,092    |                  |   | W | 25,036    |          |   | $ | 24.79     |         
|                                                                                   |                                                                                           |                              |           |                      |                      |   |           |                  |   |   |           |         



F-7



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##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


CONSOLIDATED STATEMENTS OF SHAREHOLDERS EQUITY


Years Ended December 31, 2003, 2004 AND 2005


|                           |                                                                                     |                             |  |    |           |  |  |          |           |  |             |            |            |          |  |            |               |  |  |          |           |  |  |            |  
|-------------------------- | ----------------------------------------------------------------------------------- | --------------------------- |  | -- | --------- |  |  | -------- | --------- |  | ----------- | ---------- | ---------- | -------- |  | ---------- | ------------- |  |  | -------- | --------- |  |  | ---------- | -
|                           |                                                                                     |                             |  |    |           |  |  |          |           |  |             | Total      |           
|                           |                                                                                     | Common                      |  |    | Capital   |  |  | Retained |           |  | Capital     |            |            | Minority |  |            | Shareholders | 
|                           |                                                                                     | Stock                       |  |    | Surplus   |  |  | Earnings |           |  | Adjustments |            |            | Interest |  |            | Equity        | 
|                           |                                                                                     |                             |  |    |           |  |  |          |           |  |             |            |            |          |  |            |               | 
|                           |                                                                                     | (In millions of Korean won) | 
|Balance, January 1, 2003   |                                                                                     | W44,576                     |  | W  | 2,884,382 |  |  | W        | 4,873,205 |  |             | W          | (2,295,770 | )        |  | W          | 725,507       |  |  | W        | 6,231,900 | 
|                           | Net income                                                                          |                             |  |   |           |  |  |         |           |  |             | 1,966,100  |            |          |  |           |               |  |  | (823     | )         |  |  | 1,965,277  |  
|                           | Acquisition of treasury stock (Note 16)                                             |                             |  |   |           |  |  |         |           |  |             |           |            |          |  | (1,379,337 | )             |  |  |         |           |  |  | (1,379,337 | )
|                           | Retirement of treasury stock (Note 16)                                              |                             |  |   |           |  |  |         |           |  |             | (1,545,281 | )          |          |  | 1,524,683  |               |  |  |         |           |  |  | (20,598    | )
|                           | Cash dividends paid (Note 20)                                                       |                             |  |   |           |  |  |         |           |  |             | (151,739   | )          |          |  |           |               |  |  |         |           |  |  | (151,739   | )
|                           | Excess unallocated purchase price (Note 14)                                         |                             |  |   |           |  |  | (230     | )         |  |             |           |            |          |  |           |               |  |  |         |           |  |  | (230       | )
|                           | Issuance of common stock for the merger with SK IMT Co., Ltd.
    (Note 14)         |                             |  | 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 5)      |                             |  |   |           |  |  |         |           |  |             | (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 4) |                             |  |   |           |  |  |         |           |  |             |           |            |          |  | (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 17)                                           |                             |  |   |           |  |  |         |           |  |             |           |            |          |  | 1,289      |               |  |  |         |           |  |  | 1,289      |  
|                           | Foreign-based operations translation adjustment
    (Note 2)                       |                             |  |   |           |  |  |         |           |  |             |           |            |          |  | (356       | )             |  |  |         |           |  |  | (356       | )
|                           | Decrease in minority interest in equity of consolidated
    subsidiaries            |                             |  |   |           |  |  |         |           |  |             |           |            |          |  |           |               |  |  | (568,184 | )         |  |  | (568,184   | )
|                           |                                                                                     |                             |  |    |           |  |  |          |           |  |             |            |            |          |  |            |               | 
|Balance, December 31, 2003 |                                                                                     | W44,639                     |  | W  | 2,911,556 |  |  | W        | 5,139,911 |  |             | W          | (2,158,244 | )        |  | W          | 155,985       |  |  | W        | 6,093,847 | 
|                           |                                                                                     |                             |  |    |           |  |  |          |           |  |             |            |            |          |  |            |               | 
|                           | Net income                                                                          |                             |  |   |           |  |  |         |           |  |             | 1,491,479  |            |          |  |           |               |  |  | 1,935    |           |  |  | 1,493,414  |  
|                           | Cash dividends paid (Note 20)                                                       |                             |  |   |           |  |  |         |           |  |             | (404,878   | )          |          |  |           |               |  |  |         |           |  |  | (404,878   | )
|                           | Interim cash dividends paid (Note 20)                                               |                             |  |   |           |  |  |         |           |  |             | (73,614    | )          |          |  |           |               |  |  |         |           |  |  | (73,614    | )
|                           | Excess unallocated purchase price (Note 14)                                         |                             |  |   |           |  |  | (77      | )         |  |             |           |            |          |  |           |               |  |  |         |           |  |  | (77        | )
|                           | Consideration for conversion rights (Notes 2 and 14)                                |                             |  |   |           |  |  | 67,279   |           |  |             |           |            |          |  |           |               |  |  |         |           |  |  | 67,279     |  
|                           | Acquisition of treasury stock (Note 16)                                             |                             |  |   |           |  |  |         |           |  |             |           |            |          |  | (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 4) |                             |  |   |           |  |  |         |           |  |             |           |            |          |  | 67,647     |               |  |  |         |           |  |  | 67,647     |  
|                           | Loss on valuation of currency swap (Note 2)                                         |                             |  |   |           |  |  |         |           |  |             |           |            |          |  | (49,452    | )             |  |  |         |           |  |  | (49,452    | )
|                           | Stock compensation plans (Notes 2 and 17)                                           |                             |  |   |           |  |  |         |           |  |             |           |            |          |  | 1,092      |               |  |  |         |           |  |  | 1,092      |  
|                           | Foreign-based operations translation adjustment
    (Note 2)                       |                             |  |   |           |  |  |         |           |  |             |           |            |          |  | (11,128    | )             |  |  |         |           |  |  | (11,128    | )
|                           | Decrease in minority interest in equity of consolidated
    subsidiaries            |                             |  |   |           |  |  |         |           |  |             |           |            |          |  |           |               |  |  | (59,722  | )         |  |  | (59,722    | )
|                           |                                                                                     |                             |  |    |           |  |  |          |           |  |             |            |            |          |  |            |               | 
|Balance, December 31, 2004 |                                                                                     | W44,639                     |  | W  | 2,968,301 |  |  | W        | 6,152,898 |  |             | W          | (2,058,292 | )        |  | W          | 98,198        |  |  | W        | 7,205,744 | 
|                           |                                                                                     |                             |  |    |           |  |  |          |           |  |             |            |            |          |  |            |               | 

F-8



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##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


CONSOLIDATED STATEMENTS OF SHAREHOLDERS
EQUITY  (Continued)


Years Ended December 31, 2003, 2004 AND 2005


|                           |                                                                                            |                                            |        |   |           |  |             |          |           |  |             |           |            |          |              |         |               |  |            |        |           |  |              |           |  
|-------------------------- | ------------------------------------------------------------------------------------------ | ------------------------------------------ | ------ | - | --------- |  | ----------- | -------- | --------- |  | ----------- | --------- | ---------- | -------- | ------------ | ------- | ------------- |  | ---------- | ------ | --------- |  | ------------ | --------- | -
|                           |                                                                                            |                                            |        |   |           |  |             |          |           |  |             | Total     |           
|                           |                                                                                            | Common                                     |        |   | Capital   |  |             | Retained |           |  | Capital     |           |            | Minority |              |         | Shareholders | 
|                           |                                                                                            | Stock                                      |        |   | Surplus   |  |             | Earnings |           |  | Adjustments |           |            | Interest |              |         | Equity        | 
|                           |                                                                                            |                                            |        |   |           |  |             |          |           |  |             |           |            |          |              |         |               | 
|                           |                                                                                            | (In millions of Korean won)                |       
|Balance, January 1, 2005   |                                                                                            | W44,639                                    |        | W | 2,968,301 |  |             | W        | 6,152,898 |  |             | W         | (2,058,292 | )        |              | W       | 98,198        |  |            | W      | 7,205,744 | 
|                           | Net income                                                                                 |                                            |        |  |           |  |             |         |           |  |             | 1,872,978 |            |          |              |        |               |  |            | (4,671 | )         |  |              | 1,868,307 |  
|                           | Cash dividends paid (Note 20)                                                              |                                            |        |  |           |  |             |         |           |  |             | (684,613  | )          |          |              |        |               |  |            |       |           |  |              | (684,613  | )
|                           | Interim cash dividends paid (Note 20)                                                      |                                            |        |  |           |  |             |         |           |  |             | (73,614   | )          |          |              |        |               |  |            |       |           |  |              | (73,614   | )
|                           | Deferred tax effect of temporary differences related to
    conversion rights (Note 14)    |                                            |        |  |           |  |             | (18,502  | )         |  |             |          |            |          |              |        |               |  |            |       |           |  |              | (18,502   | )
|                           | Transfer of stock option from capital adjustments to capital
    surplus (Notes 14 and 17) |                                            |        |  |           |  |             | 1,533    |           |  |             |          |            |          |              | (1,533  | )             |  |            |       |           |  |              |          |  
|                           | Equity in capital surplus and capital adjustment changes of
    affiliates (Notes 2 and 5) |                                            |        |  |           |  |             | 3,508    |           |  |             |          |            |          |              | (73,008 | )             |  |            |       |           |  |              | (69,500   | )
|                           | Unrealized gain on valuation of long-term investment securities
    (Notes 2 and 4)        |                                            |        |  |           |  |             |         |           |  |             |          |            |          |              | 50,882  |               |  |            |       |           |  |              | 50,882    |  
|                           | Gain on valuation of currency swap (Note 2)                                                |                                            |        |  |           |  |             |         |           |  |             |          |            |          |              | 35,276  |               |  |            |       |           |  |              | 35,276    |  
|                           | Stock compensation plans (Notes 2 and 17)                                                  |                                            |        |  |           |  |             |         |           |  |             |          |            |          |              | 180     |               |  |            |       |           |  |              | 180       |  
|                           | Foreign-based operations translation adjustment
    (Note 2)                              |                                            |        |  |           |  |             |         |           |  |             |          |            |          |              | (2,020  | )             |  |            |       |           |  |              | (2,020    | )
|                           | Decrease in minority interest in equity of consolidated
    subsidiaries                   |                                            |        |  |           |  |             |         |           |  |             |          |            |          |              |        |               |  |            | 15,400 |           |  |              | 15,400    |  
|                           |                                                                                            |                                            |        |   |           |  |             |          |           |  |             |           |            |          |              |         |               | 
|Balance, December 31, 2005 |                                                                                            | W44,639                                    |        | W | 2,954,840 |  |             | W        | 7,267,649 |  |             | W         | (2,048,515 | )        |              | W       | 108,927       |  |            | W      | 8,327,540 | 
|                           |                                                                                            |                                            |        |   |           |  |             |          |           |  |             |           |            |          |              |         |               | 
|                           |                                                                                            | (In thousands of U.S. dollars) (Note 2(a))
|Balance, January 1, 2005   |                                                                                            | $                                          | 44,197 |   |           |  | $ 2,938,912 |          |           |  | $ 6,091,978 |           |            |          | $ (2,037,913 | )       |               |  | $   97,226 |        |           |  | $ 7,134,400  |          
|                           | Net income                                                                                 |                                            |        |  |           |  |             |         |           |  |             | 1,854,434 |            |          |              |        |               |  |            | (4,625 | )         |  |              | 1,849,809 |  
|                           | Cash dividends paid                                                                        |                                            |        |  |           |  |             |         |           |  |             | (677,835  | )          |          |              |        |               |  |            |       |           |  |              | (677,835  | )
|                           | Interim cash dividends paid                                                                |                                            |        |  |           |  |             |         |           |  |             | (72,885   | )          |          |              |        |               |  |            |       |           |  |              | (72,885   | )
|                           | Deferred tax effect of temporary differences related to
    conversion rights              |                                            |        |  |           |  |             | (18,319  | )         |  |             |          |            |          |              |        |               |  |            |       |           |  |              | (18,319   | )
|                           | Transfer of stock option from capital adjustments to capital
    surplus                   |                                            |        |  |           |  |             | 1,518    |           |  |             |          |            |          |              | (1,518  | )             |  |            |       |           |  |              |          |  
|                           | Equity in capital surplus and capital adjustment changes of
    affiliates                 |                                            |        |  |           |  |             | 3,473    |           |  |             |          |            |          |              | (72,285 | )             |  |            |       |           |  |              | (68,812   | )
|                           | Unrealized gain on valuation of long-term investment securities                            |                                            |        |  |           |  |             |         |           |  |             |          |            |          |              | 50,378  |               |  |            |       |           |  |              | 50,378    |  
|                           | Gain on valuation of currency swap                                                         |                                            |        |  |           |  |             |         |           |  |             |          |            |          |              | 34,927  |               |  |            |       |           |  |              | 34,927    |  
|                           | Stock compensation plans                                                                   |                                            |        |  |           |  |             |         |           |  |             |          |            |          |              | 178     |               |  |            |       |           |  |              | 178       |  
|                           | Foreign-based operations translation adjustment                                           |                                            |        |  |           |  |             |         |           |  |             |          |            |          |              | (2,000  | )             |  |            |       |           |  |              | (2,000    | )
|                           | Decrease in minority interest in equity of consolidated
    subsidiaries                   |                                            |        |  |           |  |             |         |           |  |             |          |            |          |              |        |               |  |            | 15,248 |           |  |              | 15,248    |  
|                           |                                                                                            |                                            |        |   |           |  |             |          |           |  |             |           |            |          |              |         |               | 
|Balance, December 31, 2005 |                                                                                            | $                                          | 44,197 |   |           |  | $ 2,925,584 |          |           |  | $ 7,195,692 |           |            |          | $ (2,028,233 | )       |               |  | $ 107,849  |        |           |  | $  8,245,089 |          
|                           |                                                                                            |                                            |        |   |           |  |             |          |           |  |             |           |            |          |              |         |               | 



F-9



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##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


CONSOLIDATED STATEMENTS OF CASH FLOWS


Years Ended December 31, 2003, 2004 AND 2005


|                                      |                                       |                                                                                  |   |                 |              |   |   |               |           |   |      |           |           |   |   |           |           |  
|------------------------------------- | ------------------------------------- | -------------------------------------------------------------------------------- | - | --------------- | ------------ | - | - | ------------- | --------- | - | ---- | --------- | --------- | - | - | --------- | --------- | -
|                                      |                                       | 2003                                                                             |   |                 | 2004         |   |   | 2005          |           |   | 2005 |          
|                                      |                                       |                                                                                  |   |                 |              |   |   |               |           |   |      |          
|                                      |                                       |                                                                                  |   |                 |              |   |   | (In thousands |          
|                                      |                                       |                                                                                  |   | of U.S. dollars |             
|                                      |                                       | (In millions of Korean won)                                                      |   |                 | (Note 2(a))) |  
|CASH FLOWS FROM OPERATING ACTIVITIES: |                                       |                                                                                  |   |                 |              |   |   |               |           |   |      |           |           |   |   |          
|                                      | Net income                            |                                                                                  | W | 1,966,100       |              |   | W | 1,491,479     |           |   | W    | 1,872,978 |           |   | $ | 1,854,434 |          
|                                      |                                       |                                                                                  |   |                 |              |   |   |               |           |   |      |          
|                                      | Expenses not involving cash payments: |                                                                                  |   |                 |              |   |   |               |           |   |      |           |           |   |   |           |          
|                                      |                                       | Depreciation and amortization                                                    |   |                 | 1,649,902    |   |   |               | 1,752,530 |   |      |           | 1,675,528 |   |   |           | 1,658,939 |  
|                                      |                                       | Provision for severance indemnities                                              |   |                 | 65,375       |   |   |               | 58,151    |   |      |           | 47,073    |   |   |           | 46,607    |  
|                                      |                                       | Provision for bad debts                                                          |   |                 | 23,304       |   |   |               | 43,144    |   |      |           | 115,731   |   |   |           | 114,585   |  
|                                      |                                       | Foreign currency translation loss                                                |   |                 | 2,546        |   |   |               | 2,179     |   |      |           | 981       |   |   |           | 971       |  
|                                      |                                       | Loss on disposal and valuation of trading securities                             |   |                 | 3,974        |   |   |               | 232       |   |      |           | 16        |   |   |           | 16        |  
|                                      |                                       | Loss on disposal and impairment of property, equipment and
    intangible assets |   |                 | 13,784       |   |   |               | 19,208    |   |      |           | 6,783     |   |   |           | 6,716     |  
|                                      |                                       | Loss on impairment of long-term investment securities                            |   |                 | 5,749        |   |   |               | 33,654    |   |      |           | 3,422     |   |   |           | 3,388     |  
|                                      |                                       | Loss on disposal of investment assets                                            |   |                 | 45,403       |   |   |               | 1,539     |   |      |           | 4,017     |   |   |           | 3,977     |  
|                                      |                                       | Loss on transaction and valuation of currency forward and swap                   |   |                 |             |   |   |               | 15,818    |   |      |           |          |   |   |           |          |  
|                                      |                                       | Equity in losses of affiliates                                                   |   |                 | 6,975        |   |   |               | 11,954    |   |      |           | 71,825    |   |   |           | 71,114    |  
|                                      |                                       | Minority interest in net gain of consolidated subsidiaries                       |   |                 |             |   |   |               | 1,935     |   |      |           |          |   |   |           |          |  
|                                      |                                       | Amortization of discounts on bonds and other                                     |   |                 | 73,655       |   |   |               | 46,274    |   |      |           | 51,846    |   |   |           | 51,333    |  
|                                      |                                       |                                                                                  |   |                 |              |   |   |               |           |   |      |          
|                                      |                                       | Sub-total                                                                        |   |                 | 1,890,667    |   |   |               | 1,986,618 |   |      |           | 1,977,222 |   |   |           | 1,957,646 |  
|                                      |                                       |                                                                                  |   |                 |              |   |   |               |           |   |      |          
|                                      | Income not involving cash receipts:   |                                                                                  |   |                 |              |   |   |               |           |   |      |           |           |   |   |           |          
|                                      |                                       | Reversal of allowance for doubtful accounts                                      |   |                 | (1,555       | ) |   |               | (759      | ) |      |           | (450      | ) |   |           | (446      | )
|                                      |                                       | Foreign currency translation gain                                                |   |                 | (668         | ) |   |               | (3,367    | ) |      |           | (658      | ) |   |           | (651      | )
|                                      |                                       | Gain on disposal and valuation of trading securities                             |   |                 | (188         | ) |   |               | (2,548    | ) |      |           | (1        | ) |   |           | (1        | )
|                                      |                                       | Gain on disposal of investment assets                                            |   |                 | (1,555       | ) |   |               | (2,004    | ) |      |           | (24,613   | ) |   |           | (24,369   | )
|                                      |                                       | Gain on disposal of consolidated subsidiary                                      |   |                 |             |   |   |               |          |   |      |           | (178,689  | ) |   |           | (176,920  | )
|                                      |                                       | Gain on disposal of property, equipment and intangible assets                    |   |                 | (2,750       | ) |   |               | (2,067    | ) |      |           | (4,693    | ) |   |           | (4,647    | )
|                                      |                                       | Gain on transactions and valuation of currency forward and swap                  |   |                 |             |   |   |               | (2,850    | ) |      |           | (2,578    | ) |   |           | (2,552    | )
|                                      |                                       | Equity in earnings of affiliates                                                 |   |                 |             |   |   |               |          |   |      |           | (20,949   | ) |   |           | (20,742   | )
|                                      |                                       | Minority interest in net loss of consolidated subsidiaries                       |   |                 | (823         | ) |   |               |          |   |      |           | (4,671    | ) |   |           | (4,625    | )
|                                      |                                       | Other                                                                            |   |                 | (12,491      | ) |   |               | (12,129   | ) |      |           | (3,769    | ) |   |           | (3,731    | )
|                                      |                                       |                                                                                  |   |                 |              |   |   |               |           |   |      |          
|                                      |                                       | Sub-total                                                                        |   |                 | (20,030      | ) |   |               | (25,724   | ) |      |           | (241,071  | ) |   |           | (238,684  | )
|                                      |                                       |                                                                                  |   |                 |              |   |   |               |           |   |      |          

F-10



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##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


CONSOLIDATED STATEMENTS OF CASH
FLOWS  (Continued)


Years Ended December 31, 2003, 2004 AND 2005


|                                                                       |                                                                                     |                             |           |                 |              |  |           |               |   |  |           |          |   |  |           |          |  
|---------------------------------------------------------------------- | ----------------------------------------------------------------------------------- | --------------------------- | --------- | --------------- | ------------ |  | --------- | ------------- | - |  | --------- | -------- | - |  | --------- | -------- | -
|                                                                       |                                                                                     | 2003                        |           |                 | 2004         |  |           | 2005          |   |  | 2005      |         
|                                                                       |                                                                                     |                             |           |                 |              |  |           |               |   |  |           |         
|                                                                       |                                                                                     |                             |           |                 |              |  |           | (In thousands |  
|                                                                       |                                                                                     |                             |           | of U.S. dollars |             
|                                                                       |                                                                                     | (In millions of Korean won) |           |                 | (Note 2(a))) | 
|Changes in assets and liabilities related to operating
    activities: |                                                                                     |                             |           |                 |              |  |           |               |   |  |           |          |   |  |           |         
|                                                                       | Accounts receivable  trade                                                         |                             |           | (159,160        | )            |  |           | (170,891      | ) |  |           | (210,957 | ) |  |           | (208,868 | )
|                                                                       | Accounts receivable  other                                                         |                             |           | (48,789         | )            |  |           | (552,343      | ) |  |           | 22,284   |   |  |           | 22,063   |  
|                                                                       | Inventories                                                                         |                             |           | (4,056          | )            |  |           | (20,982       | ) |  |           | 8,297    |   |  |           | 8,215    |  
|                                                                       | Other current assets                                                                |                             |           | (30,417         | )            |  |           | (5,549        | ) |  |           | (15,922  | ) |  |           | (15,764  | )
|                                                                       | Accounts payable                                                                    |                             |           | (396,700        | )            |  |           | (90,977       | ) |  |           | (34,441  | ) |  |           | (34,100  | )
|                                                                       | Income taxes payable                                                                |                             |           | (11,597         | )            |  |           | (125,430      | ) |  |           | 88,477   |   |  |           | 87,601   |  
|                                                                       | Accrued expenses                                                                    |                             |           | 24,385          |              |  |           | (26,622       | ) |  |           | (12,944  | ) |  |           | (12,816  | )
|                                                                       | Other current liabilities                                                           |                             |           | 45,776          |              |  |           | 25,188        |   |  |           | (1,009   | ) |  |           | (999     | )
|                                                                       | Deferred income taxes                                                               |                             |           | 120,879         |              |  |           | 78,356        |   |  |           | 7,640    |   |  |           | 7,564    |  
|                                                                       | Severance indemnity payments                                                        |                             |           | (24,516         | )            |  |           | (27,582       | ) |  |           | (24,365  | ) |  |           | (24,124  | )
|                                                                       | Dividends received from affiliates                                                  |                             |           | 621             |              |  |           | 755           |   |  |           | 785      |   |  |           | 777      |  
|                                                                       | Deposits for group severance indemnities and other deposits                         |                             |           | (24,727         | )            |  |           | (19,489       | ) |  |           | (32,869  | ) |  |           | (32,543  | )
|                                                                       | Transfer of accrued severance indemnities from affiliates and
    related companies |                             |           | 955             |              |  |           |              |   |  |           |         |   |  |           |         |  
|                                                                       |                                                                                     |                             |           |                 |              |  |           |               |   |  |           |         
|                                                                       | Sub-total                                                                           |                             |           | (507,346        | )            |  |           | (935,566      | ) |  |           | (205,024 | ) |  |           | (202,994 | )
|                                                                       |                                                                                     |                             |           |                 |              |  |           |               |   |  |           |         
|Net Cash Provided by Operating Activities                              |                                                                                     |                             | 3,329,391 |                 |              |  | 2,516,807 |               |   |  | 3,404,105 |          |   |  | 3,370,402 |         
|                                                                       |                                                                                     |                             |           |                 |              |  |           |               |   |  |           |         

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, 2003, 2004 AND 2005


|                                      |                                                                                   |                             |   |                 |              |  |   |               |   |  |      |            |   |  |   |            |  
|------------------------------------- | --------------------------------------------------------------------------------- | --------------------------- | - | --------------- | ------------ |  | - | ------------- | - |  | ---- | ---------- | - |  | - | ---------- | -
|                                      |                                                                                   | 2003                        |   |                 | 2004         |  |   | 2005          |   |  | 2005 |           
|                                      |                                                                                   |                             |   |                 |              |  |   |               |   |  |      |           
|                                      |                                                                                   |                             |   |                 |              |  |   | (In thousands |  
|                                      |                                                                                   |                             |   | of U.S. dollars |             
|                                      |                                                                                   | (In millions of Korean won) |   |                 | (Note 2(a))) | 
|CASH FLOWS FROM INVESTING ACTIVITIES: |                                                                                   |                             |   |                 |              |  |   |               |   |  |      |            |   |  |   |           
|                                      | Decrease (increase) in short-term financial instruments                           |                             | W | 95,123          |              |  | W | 90,034        |   |  | W    | (75,261    | ) |  | $ | (74,516    | )
|                                      | Decrease (increase) in trading securities                                         |                             |   | (137,618        | )            |  |   | 240,204       |   |  |      | (122,710   | ) |  |   | (121,495   | )
|                                      | Decrease in short-term loans                                                      |                             |   | 51,612          |              |  |   | 89,447        |   |  |      | 60,530     |   |  |   | 59,931     |  
|                                      | Decrease in long-term bank deposits                                               |                             |   |                |              |  |   | 50,006        |   |  |      | 2          |   |  |   | 2          |  
|                                      | Proceeds from sale of current portion of long-term investment
    securities      |                             |   | 70,267          |              |  |   | 85,861        |   |  |      | 53,608     |   |  |   | 53,077     |  
|                                      | Proceeds from sale of long-term investment securities                             |                             |   | 762,896         |              |  |   | 17,658        |   |  |      | 40,889     |   |  |   | 40,484     |  
|                                      | Proceeds from sale of equity securities accounted for using the
    equity method |                             |   | 2,889           |              |  |   | 268           |   |  |      | 7,539      |   |  |   | 7,464      |  
|                                      | Proceeds from sale of consolidated subsidiary                                     |                             |   |                |              |  |   |              |   |  |      | 290,966    |   |  |   | 288,085    |  
|                                      | Decrease in long-term loans                                                       |                             |   | 9,980           |              |  |   | 4,746         |   |  |      | 57         |   |  |   | 56         |  
|                                      | Decrease in guarantee deposits                                                    |                             |   | 67,410          |              |  |   | 22,096        |   |  |      | 142,131    |   |  |   | 140,724    |  
|                                      | Decrease in other non-current assets                                              |                             |   | 50,758          |              |  |   | 36,287        |   |  |      | 36,110     |   |  |   | 35,753     |  
|                                      | Proceeds from disposal of property and equipment                                  |                             |   | 12,828          |              |  |   | 10,116        |   |  |      | 34,179     |   |  |   | 33,841     |  
|                                      | Proceeds from disposal of intangible assets                                       |                             |   | 2,248           |              |  |   | 2,291         |   |  |      | 107        |   |  |   | 106        |  
|                                      | Increase in long-term loans                                                       |                             |   | (60,145         | )            |  |   | (56,428       | ) |  |      | (59,008    | ) |  |   | (58,424    | )
|                                      | Increase in long-term bank deposits                                               |                             |   | (350            | )            |  |   | (60,005       | ) |  |      | (1,140     | ) |  |   | (1,129     | )
|                                      | Acquisition of long-term investment securities                                    |                             |   | (437,076        | )            |  |   | (54,132       | ) |  |      | (319,061   | ) |  |   | (315,902   | )
|                                      | Acquisition of equity securities accounted for using the equity
    method        |                             |   | (7,158          | )            |  |   | (21,086       | ) |  |      | (231,793   | ) |  |   | (229,498   | )
|                                      | Increase in long-term loans                                                       |                             |   | (15,578         | )            |  |   | (35,291       | ) |  |      | (5,766     | ) |  |   | (5,709     | )
|                                      | Increase in guarantee deposits                                                    |                             |   | (88,223         | )            |  |   | (40,957       | ) |  |      | (75,295    | ) |  |   | (74,550    | )
|                                      | Increase in other non-current assets                                              |                             |   | (54,090         | )            |  |   | (82,843       | ) |  |      | (86,803    | ) |  |   | (85,943    | )
|                                      | Acquisition of property and equipment                                             |                             |   | (1,647,639      | )            |  |   | (1,631,941    | ) |  |      | (1,416,622 | ) |  |   | (1,402,596 | )
|                                      | Acquisition of intangible assets                                                  |                             |   | (56,745         | )            |  |   | (72,376       | ) |  |      | (199,494   | ) |  |   | (197,519   | )
|                                      | Acquisition of minority interest                                                  |                             |   | (36,442         | )            |  |   | (64,247       | ) |  |      | (11,352    | ) |  |   | (11,240    | )
|                                      |                                                                                   |                             |   |                 |              |  |   |               |   |  |      |           
|                                      | Net Cash Used in Investing Activities                                             |                             |   | (1,415,053      | )            |  |   | (1,470,292    | ) |  |      | (1,938,187 | ) |  |   | (1,918,998 | )
|                                      |                                                                                   |                             |   |                 |              |  |   |               |   |  |      |           

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, 2003, 2004 AND 2005


|                                                                                                     |                                                                          |                             |          |                 |              |   |         |               |   |   |         |            |   |   |         |            |  
|---------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------ | --------------------------- | -------- | --------------- | ------------ | - | ------- | ------------- | - | - | ------- | ---------- | - | - | ------- | ---------- | -
|                                                                                                     |                                                                          | 2003                        |          |                 | 2004         |   |         | 2005          |   |   | 2005    |           
|                                                                                                     |                                                                          |                             |          |                 |              |   |         |               |   |   |         |           
|                                                                                                     |                                                                          |                             |          |                 |              |   |         | (In thousands |  
|                                                                                                     |                                                                          |                             |          | of U.S. dollars |             
|                                                                                                     |                                                                          | (In millions of Korean won) |          |                 | (Note 2(a))) |  
|CASH FLOWS FROM FINANCING ACTIVITIES:                                                                |                                                                          |                             |          |                 |              |   |         |               |   |   |         |            |   |   |         |           
|                                                                                                     | Increase in short-term borrowings                                        |                             | W        | 108,669         |              |   | W       |              |   |   | W       |           |   |   | $       |           |  
|                                                                                                     | Issuance of bonds payable                                                |                             |          | 688,737         |              |   |         | 1,205,727     |   |   |         | 193,683    |   |   |         | 191,765    |  
|                                                                                                     | Increase in long-term borrowings                                         |                             |          | 13,532          |              |   |         |              |   |   |         |           |   |   |         |           |  
|                                                                                                     | Payment of short-term borrowings                                         |                             |          | (12,087         | )            |   |         | (359,133      | ) |   |         | (376,929   | ) |   |         | (373,197   | )
|                                                                                                     | Payment of current portion of long-term debt                             |                             |          | (939,176        | )            |   |         | (1,370,611    | ) |   |         | (500,033   | ) |   |         | (495,082   | )
|                                                                                                     | Repayment of bonds payable                                               |                             |          |                |              |   |         | (5,068        | ) |   |         |           |   |   |         |           |  
|                                                                                                     | Payment of dividends                                                     |                             |          | (151,739        | )            |   |         | (478,318      | ) |   |         | (758,192   | ) |   |         | (750,685   | )
|                                                                                                     | Decrease in facility deposits                                            |                             |          | (2,654          | )            |   |         | (12,757       | ) |   |         | (7,670     | ) |   |         | (7,594     | )
|                                                                                                     | Transaction of currency forward and swap                                 |                             |          |                |              |   |         | 2,821         |   |   |         |           |   |   |         |           |  
|                                                                                                     | Net increase in treasury stock                                           |                             |          | (1,379,337      | )            |   |         | (2            | ) |   |         |           |   |   |         |           |  
|                                                                                                     | Increase in minority interest in equity of consolidated
    subsidiaries |                             |          | 22,278          |              |   |         | 45,065        |   |   |         | 21,243     |   |   |         | 21,033     |  
|                                                                                                     | Other                                                                    |                             |          | (609,262        | )            |   |         | 3,706         |   |   |         | (1,140     | ) |   |         | (1,129     | )
|                                                                                                     |                                                                          |                             |          |                 |              |   |         |               |   |   |         |           
|                                                                                                     | Net Cash Used in Financing Activities                                    |                             |          | (2,261,039      | )            |   |         | (968,570      | ) |   |         | (1,429,038 | ) |   |         | (1,414,889 | )
|                                                                                                     |                                                                          |                             |          |                 |              |   |         |               |   |   |         |           
|NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS DUE TO
    CHANGES IN CONSOLIDATED SUBSIDIARIES |                                                                          |                             | 72       |                 |              |   | (24,803 | )             |   |   | (29,084 | )          |   |   | (28,796 | )         
|                                                                                                     |                                                                          |                             |          |                 |              |   |         |               |   |   |         |           
|NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                                                 |                                                                          |                             | (346,629 | )               |              |   | 53,142  |               |   |   | 7,796   |            |   |   | 7,719   |           
|CASH AND CASH EQUIVALENTS AT BEGINNING OF THE YEAR                                                   |                                                                          |                             | 664,117  |                 |              |   | 317,488 |               |   |   | 370,630 |            |   |   | 366,960 |           
|                                                                                                     |                                                                          |                             |          |                 |              |   |         |               |   |   |         |           
|CASH AND CASH EQUIVALENTS AT END OF THE YEAR                                                         |                                                                          | W                           | 317,488  |                 |              | W | 370,630 |               |   | W | 378,426 |            |   | $ | 374,679 |           
|                                                                                                     |                                                                          |                             |          |                 |              |   |         |               |   |   |         |           
|Cash paid for interest (net of amounts capitalized)                                                  |                                                                          | W                           | 328,890  |                 |              | W | 264,224 |               |   | W | 203,259 |            |   | $ | 201,247 |           
|                                                                                                     |                                                                          |                             |          |                 |              |   |         |               |   |   |         |           
|Cash paid for income taxes                                                                           |                                                                          | W                           | 675,122  |                 |              | W | 679,262 |               |   | W | 588,296 |            |   | $ | 582,471 |           
|                                                                                                     |                                                                          |                             |          |                 |              |   |         |               |   |   |         |           



F-13



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##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


Years Ended December 31, 2003, 2004 AND 2005




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



|                                                        |  |           |            |               |  |  |        | 
|------------------------------------------------------- |  | --------- | ---------- | ------------- |  |  | ------ | 
|                                                        |  |           |            | Percentage of
|                                                        |  | Number of |            | Total Shares 
|                                                        |  | Shares    |            | Issued (%)   
|                                                        |  |           |            |              
|SK Group                                                |  |           | 18,748,459 |               |  |  | 22.79  | 
|POSCO                                                   |  |           | 2,991,496  |               |  |  | 3.64   | 
|Institutional investors and other minority shareholders |  |           | 51,874,341 |               |  |  | 63.04  | 
|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-14



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##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                           |  |               |      |                  |  |                                           |  |      |        |      |  |  |        |  |  |  |        | 
|------------------------------------------ |  | ------------- | ---- | ---------------- |  | ----------------------------------------- |  | ---- | ------ | ---- |  |  | ------ |  |  |  | ------ | 
|                                           |  |               |      |                  |  | Ownership Percentage (%)                 
|                                           |  | Year of       |      |                  |  |                                          
|Subsidiary                                 |  | Establishment |      | Primary Business |  | 2003                                      |  | 2004 |        | 2005
|                                           |  |               |      |                  |  |                                           |  |      |        |     
|SK Teletech Co., Ltd.                      |  |               |      |                  |  |                                           |  |      | 61.66  |      |  |  | 89.13  |  |  |  |       | 
|SK Capital Co., Ltd.                       |  |               | 1995 |                  |  | Finance                                   |  |      | 100.00 |      |  |  | 100.00 |  |  |  | 100.00 | 
|SK Telink Co., Ltd.                        |  |               | 1998 |                  |  | Telecommunication services                |  |      | 90.77  |      |  |  | 90.77  |  |  |  | 90.77  | 
|SK Communications Co., Ltd.                |  |               | 1999 |                  |  | Internet website services                 |  |      | 92.69  |      |  |  | 93.44  |  |  |  | 92.37  | 
|SK Wyverns Baseball Club Co., Ltd.         |  |               | 2000 |                  |  | Business related sports                   |  |      | 99.99  |      |  |  | 99.99  |  |  |  | 99.99  | 
|Centurion IT Investment Association        |  |               | 2001 |                  |  | Investment association                    |  |      | 37.50  |      |  |  | 37.50  |  |  |  | 37.50  | 
|Global Credit & information Corp.          |  |               | 1998 |                  |  | Credit and collection services            |  |      | 50.00  |      |  |  | 50.00  |  |  |  | 50.00  | 
|PAXNet Co., Ltd.                           |  |               | 1999 |                  |  | Internet website services                 |  |      | 67.10  |      |  |  | 67.10  |  |  |  | 67.10  | 
|Seoul Records, Inc.                        |  |               | 1982 |                  |  | Release of music disc                     |  |      |       |      |  |  |       |  |  |  | 60.00  | 
|SK Telecom International Inc.              |  |               | 1995 |                  |  | Internet website services                 |  |      | 100.00 |      |  |  | 100.00 |  |  |  | 100.00 | 
|SLD Telecom PTE Ltd.                       |  |               | 2000 |                  |  | Telecommunication services                |  |      | 53.80  |      |  |  | 55.10  |  |  |  | 55.10  | 
|SK Telecom China Co., Ltd.                 |  |               | 2002 |                  |  | Telecommunication services                |  |      | 100.00 |      |  |  | 100.00 |  |  |  | 100.00 | 
|TU Media Corp.                             |  |               | 2003 |                  |  | Digital multi media  broadcasting service |  |      | 100.00 |      |  |  | 28.50  |  |  |  | 29.60  | 
|U-Land Company Limited                     |  |               | 2004 |                  |  | Telecommunication services                |  |      |       |      |  |  | 100.00 |  |  |  | 100.00 | 
|SK Telecom USA Holdings, Inc.              |  |               | 2005 |                  |  | Telecommunication services                |  |      |       |      |  |  |       |  |  |  | 100.00 | 
|The First Music Investment Fund of SK-PVC  |  |               | 2005 |                  |  | Investment association                    |  |      |       |      |  |  |       |  |  |  | 99.00  | 
|The Second Music Investment Fund of SK-PVC |  |               | 2005 |                  |  | Investment association                    |  |      |       |      |  |  |       |  |  |  | 99.00  | 
|SK-KTB Music Investment Fund               |  |               | 2005 |                  |  | Investment association                    |  |      |       |      |  |  |       |  |  |  | 99.00  | 
|IMM Cinema Fund                            |  |               | 2005 |                  |  | Investment association                    |  |      |       |      |  |  |       |  |  |  | 48.39  | 



W




F-15



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##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




W




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





|   |                          
|-- | -------------------------
|d. | Cash and Cash Equivalents





|   |                                
|-- | -------------------------------
|e. | Allowance for Doubtful Accounts





|                                                   |  |      |         |   |      |   |         |      |  |   |         |  
|-------------------------------------------------- |  | ---- | ------- | - | ---- | - | ------- | ---- |  | - | ------- | -
|                                                   |  | 2003 |         |   | 2004 |   |         | 2005 | 
|                                                   |  |      |         |   |      |   |         |      | 
|Beginning balance                                  |  | W    | 60,542  |   |      | W | 65,327  |      |  | W | 71,090  |  
|Write-offs                                         |  |      | (17,593 | ) |      |   | (23,418 | )    |  |   | (49,181 | )
|                                                   |  |      |         |   |      |   |         |      | 
|                                                   |  |      | 42,949  |   |      |   | 41,909  |      |  |   | 21,909  |  
|Provision for bad debt                             |  |      | 22,378  |   |      |   | 29,181  |      |  |   | 112,792 |  
|Decrease from changes in consolidated subsidiaries |  |      |        |   |      |   |        |      |  |   | (1,202  | )
|                                                   |  |      |         |   |      |   |         |      | 
|End of year                                        |  | W    | 65,327  |   |      | W | 71,090  |      |  | W | 133,499 |  
|                                                   |  |      |         |   |      |   |         |      | 



|   |            
|-- | -----------
|f. | Inventories

W


F-16



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##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




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

held-to






Held-to


held-to




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





|   |                       
|-- | ----------------------
|i. | Property and Equipment









|   |                  
|-- | -----------------
|j. | Intangible Assets



F-17



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##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


W W 3-year W W W W W






|   |                  
|-- | -----------------
|k. | Convertible Bonds





|   |                   
|-- | ------------------
|l. | Discounts on Bonds





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





|   |                                                         
|-- | --------------------------------------------------------
|n. | Provisions, Contingent Liabilities and Contingent Assets







| |   |                                                                                                                                                                                                                                       
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Possible obligations related to past events, for which the
    existence of a liability can only be confirmed upon occurrence
    of uncertain future event or events outside the control of the
    Company and certain subsidiaries.

F-18



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##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




| |   |                                                                                                                                                                                                                                                                                              
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Present obligations arising out of past events or transactions,
    for which i) a disbursement of economic resources to
    fulfill such obligations is not probable or ii) a
    disbursement of economic resources is probable, but the related
    amount cannot be reasonably estimated.





|   |                              
|-- | -----------------------------
|o. | Accrued Severance Indemnities



W W W


W W W




|                                                             |                                       |      |         |          |      |   |         |          |   |   |         |          |  
|------------------------------------------------------------ | ------------------------------------- | ---- | ------- | -------- | ---- | - | ------- | -------- | - | - | ------- | -------- | -
|                                                             |                                       | 2003 |         |          | 2004 |   |         | 2005     |  
|                                                             |                                       |      |         |          |      |   |         |          |  
|Beginning net balance                                        |                                       | W    | 48,519  |          |      | W | 67,824  |          |   | W | 80,984  |         
|Provision                                                    |                                       |      | 65,375  |          |      |   | 58,151  |          |   |   | 47,073  |         
|Payments to employees                                        |                                       |      | (24,516 | )        |      |   | (27,582 | )        |   |   | (24,365 | )       
|Transfer from affiliated and related companies               |                                       |      | 955     |          |      |   |        |          |   |   |        |         
|Net increase due to the changes in consolidated subsidiaries |                                       |      | 2,395   |          |      |   | 2,372   |          |   |   | 594     |         
|Deposits for severance indemnities                           |                                       |      | (24,904 | )        |      |   | (19,781 | )        |   |   | (33,002 | )       
|                                                             |                                       |      |         |          |      |   |         |          |  
|Ending net balance                                           |                                       | W    | 67,824  |          |      | W | 80,984  |          |   | W | 71,284  |         
|                                                             |                                       |      |         |          |      |   |         |          |  
|Ending balance:                                              |                                       |      |         |          |      |   |         |          |   |   |         |         
|                                                             | Accrued severance indemnities         |      | W       | 218,914  |      |   | W       | 251,314  |   |   | W       | 267,855  |  
|                                                             | Deposits with insurance companies     |      |         | (144,861 | )    |   |         | (164,643 | ) |   |         | (191,354 | )
|                                                             | Transfer to the National Pension Fund |      |         | (6,229   | )    |   |         | (5,687   | ) |   |         | (5,217   | )
|                                                             |                                       |      |         |          |      |   |         |          |  
|                                                             | Net balance                           |      | W       | 67,824   |      |   | W       | 80,984   |   |   | W       | 71,284   |  
|                                                             |                                       |      |         |          |      |   |         |          |  

F-19



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##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                         |       |   |         |         | 
|------------------------ | ----- | - | ------- | ------- | 
|Year ending December 31, |       |  
|                         |       |  
|2006                     |       | W | 248,710 | (note) 
|2007                     |       |   | 9       |        
|2008                     |       |   | 629     |        
|2009                     |       |   | 400     |        
|2010                     |       |   | 808     |        
|2011Y2015                |       |   | 10,661  |        
|                         |       |   |         |        
|                         | Total |   | W       | 261,217 | 
|                         |       |   |         |        






|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(note) | The future benefits in 2006 include early settlement of
    retirement benefit of W243,847 million
    which is paid in April 2006, in accordance with a resolution of
    the Companys a joint labor-management conference dated
    March 16, 2006. These amounts do not include additional
    bonuses for early settlement and voluntary early retirement
    amounting to W125,890 million and
    W14,705 million, respectively, which is
    paid in April 2006.





|   |                      
|-- | ---------------------
|p. | Accounting for Leases







|   |                               
|-- | ------------------------------
|q. | Research and Development Costs

W W W W W W




|   |                       
|-- | ----------------------
|r. | Derivative Instruments



F-20



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##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






|   |                    
|-- | -------------------
|s. | Revenue Recognition







|   |             
|-- | ------------
|t. | Income Taxes







|   |                                                       
|-- | ------------------------------------------------------
|u. | Net Income Per Share and Dilutive Net Income Per Share





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





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

W W W


F-21



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##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




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





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







| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Through 2004, when the Companys equity interests in the
    equity method investees were diluted as a result of the equity
    method investees direct sales of their unissued shares to
    third parties, the changes in the Companys proportionate
    equity of investees were accounted for as capital transactions.
    Effective January 1, 2005, such transactions are accounted
    for as income statement treatment, pursuant to adoption of SKAS
    No. 15, Investments: Equity Method. As a result
    of adopting SKAS No. 15, net income for the year ended
    December 31, 2005 increased by
    W6,262 million (net of tax effect of
    W2,375 million).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|
| |  | Through 2004, tax effects of temporary differences related to
    capital surplus or capital adjustments were excluded in
    determining the deferred tax assets or liabilities. Effective
    January 1, 2005, such tax effects of temporary differences
    are included in determining the deferred tax assets or
    liabilities, pursuant to adoption of SKAS No. 16
    Income Taxes. Accordingly, adjustments made directly
    to capital surplus or capital adjustments, which result in
    temporary differences, are recorded net of related tax effects.
    In addition, effective January 1, 2005, deferred income tax
    assets and liabilities which were presented on the balance sheet
    as a single non-current net number through 2004, are separated
    into current and non-current portions. As a result of adopting
    SKAS No. 16, total assets and total liabilities as of
    December 31, 2005 increased by
    W67,612 million and
    W97,768 million, respectively, and total
    stockholders equity as of December 31, 2005 decreased
    by W30,156 million, which was directly
    reflected in capital surplus or capital adjustments
    (see Note 18).
|
| |  | Through 2004, provisions were recorded at nominal value.
    Effective January 1, 2005, provisions are recorded at the
    present value when the effect of the time value of money is
    material, pursuant to adoption of SKAS No. 17
    Provisions, Contingent Liabilities and Contingent
    Assets. SKAS No. 17 is prospectively applied and as a
    result of adopting such accounting standard, total liabilities
    as of December 31, 2005 decreased by
    W7,415 million and ordinary income and net
    income for the year ended December 31, 2005 increased by
    W5,376 million (see Note 25).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  



F-22



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##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






|   |                  
|-- | -----------------
|z. | Reclassifications





|   |            
|-- | -----------
|3. | INVENTORIES



|                                  |  |      |        |  |      |   |        |      |  |   |       |  
|--------------------------------- |  | ---- | ------ |  | ---- | - | ------ | ---- |  | - | ----- | -
|                                  |  | 2003 |        |  | 2004 |   |        | 2005 | 
|                                  |  |      |        |  |      |   |        |      | 
|Merchandise                       |  | W    | 494    |  |      | W | 164    |      |  | W | 863   |  
|Finished goods                    |  |      | 11,319 |  |      |   | 19,286 |      |  |   | 766   |  
|Semi-finished goods               |  |      | 4,216  |  |      |   | 7,019  |      |  |   |      |  
|Raw materials                     |  |      | 7,442  |  |      |   | 14,791 |      |  |   | 493   |  
|Supplies                          |  |      | 8,045  |  |      |   | 11,061 |      |  |   | 6,301 |  
|                                  |  |      |        |  |      |   |        |      | 
|Total                             |  |      | 31,516 |  |      |   | 52,321 |      |  |   | 8,423 |  
|Less allowance for valuation loss |  |      |       |  |      |   |       |      |  |   | (639  | )
|                                  |  |      |        |  |      |   |        |      | 
|Net                               |  | W    | 31,516 |  |      | W | 52,321 |      |  | W | 7,784 |  
|                                  |  |      |        |  |      |   |        |      | 



|   |                      
|-- | ---------------------
|4. | INVESTMENT SECURITIES



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



|                         |  |                  |         |  |               |   |         |                 |  |   |         |  |  |      |         |  |  |   |         | 
|------------------------ |  | ---------------- | ------- |  | ------------- | - | ------- | --------------- |  | - | ------- |  |  | ---- | ------- |  |  | - | ------- | 
|                         |  | Acquisition Cost |         |  | Fair Value at |   |         | Carrying Amount | 
|                         |  | at December 31,  |         |  | December 31,  |   |         |                 | 
|                         |  | 2005             |         |  | 2005          |   |         | 2003            |  |   | 2004    |  |  | 2005 |        
|                         |  |                  |         |  |               |   |         |                 |  |   |         |  |  |      |        
|Stocks                   |  | W                | 11      |  |               | W | 12      |                 |  | W |        |  |  | W    | 368     |  |  | W | 12      | 
|Public bonds             |  |                  |        |  |               |   |        |                 |  |   | 18,499  |  |  |      |        |  |  |   |        | 
|Corporate bonds          |  |                  |        |  |               |   |        |                 |  |   | 4,383   |  |  |      |        |  |  |   |        | 
|Beneficiary certificates |  |                  | 777,460 |  |               |   | 777,460 |                 |  |   | 870,335 |  |  |      | 654,411 |  |  |   | 777,460 | 
|                         |  |                  |         |  |               |   |         |                 |  |   |         |  |  |      |        
|Total                    |  | W                | 777,471 |  |               | W | 777,472 |                 |  | W | 893,217 |  |  | W    | 654,779 |  |  | W | 777,472 | 
|                         |  |                  |         |  |               |   |         |                 |  |   |         |  |  |      |        

F-23



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##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




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



|                                     |  |      |         |   |      |   |         |      |  |   |           |  
|------------------------------------ |  | ---- | ------- | - | ---- | - | ------- | ---- |  | - | --------- | -
|                                     |  | 2003 |         |   | 2004 |   |         | 2005 | 
|                                     |  |      |         |   |      |   |         |      | 
|Available-for-sale equity securities |  | W    | 824,392 |   |      | W | 896,508 |      |  | W | 923,821   |  
|Available-for-sale debt securities   |  |      | 14,315  |   |      |   | 5,158   |      |  |   | 296,273   |  
|Held-to-maturity securities          |  |      | 126,347 |   |      |   | 50,144  |      |  |   | 115       |  
|                                     |  |      |         |   |      |   |         |      | 
|Total                                |  |      | 965,054 |   |      |   | 951,810 |      |  |   | 1,220,209 |  
|Less current portion                 |  |      | (85,861 | ) |      |   | (3,709  | )    |  |   | (1        | )
|                                     |  |      |         |   |      |   |         |      | 
|Long-term portion                    |  | W    | 879,193 |   |      | W | 948,101 |      |  | W | 1,220,208 |  
|                                     |  |      |         |   |      |   |         |      | 

F-24



---



##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


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




|                                                                                |           |           |            |                |             |  |             |          |  |            |             |         |                 |          |                |   |       |   |         |         |       |   |         |         |       |   |         |         | 
|------------------------------------------------------------------------------- | --------- | --------- | ---------- | -------------- | ----------- |  | ----------- | -------- |  | ---------- | ----------- | ------- | --------------- | -------- | -------------- | - | ----- | - | ------- | ------- | ----- | - | ------- | ------- | ----- | - | ------- | ------- | 
|                                                                                |           |           |            | Ownership      |             |  | Acquisition |          |  |            |             |        
|                                                                                |           |           |            | Percentage (%) |             |  | Cost at     |          |  | Fair Value |             |         | Carrying Amount |         
|                                                                                |           | Number of |            |                | at Dec. 31, |  |             | Dec. 31, |  |            | at Dec. 31, |         |                 |          |               
|                                                                                |           | Shares    |            |                | 2005        |  |             | 2005     |  |            | 2005        |         |                 | 2003     |                |   | 2004  |   |         | 2005    |      
|                                                                                |           |           |            |                |             |  |             |          |  |            |             |         |                 |          |                |   |       |   |         |         |      
|(Investments in listed companies)                                               |           |           |            |                |             |  |             |          |  |            |             |         |                 |          |                |   |       |   |         |         |       |   |         |         |       |   |         |        
|Digital Chosunilbo Co., Ltd.                                                    |           |           | 2,890,630  |                |             |  | 7.8         |          |  | W          | 5,781       |         |                 | W  5,796 |                | W | 2,847 |   |         | W       | 2,023 |   |         | W       | 5,796 |  
|hanarotelecom incorporated                                                      |           |           | 22,090,000 |                |             |  | 4.8         |          |  |            | 121,677     |         |                 |          | 56,440         |   |       |   | 26,838  |         |       |   | 71,019  |         |       |   | 56,440  |        
|KRTnet Corporation (formerly Korea Radio Wave Basestation
    Management)       |           |           | 234,150    |                |             |  | 4.4         |          |  |            | 1,171       |         |                 |          | 2,646          |   |       |   | 2,669   |         |       |   | 2,178   |         |       |   | 2,646   |        
|POSCO                                                                           |           |           | 2,481,310  |                |             |  | 2.9         |          |  |            | 332,662     |         |                 |          | 501,225        |   |       |   | 404,454 |         |       |   | 464,005 |         |       |   | 501,225 |        
|INNOTG Co., Ltd.                                                                |           |           | 59,473     |                |             |  | 0.4         |          |  |            | 1,695       |         |                 |          | 83             |   |       |   |        |         |       |   | 152     |         |       |   | 83      |        
|HB Entertainment Co., Ltd.                                                      |           |           | 752,692    |                |             |  | 3.8         |          |  |            | 2,258       |         |                 |          | 2,408          |   |       |   |        |         |       |   |        |         |       |   | 2,408   |        
|SK SECURITIES CO., Ltd.                                                         |           |           |           |                |             |  |            |          |  |            |            |         |                 |          | (note a        | ) |       |   | 1,877   |         |       |   | 2,418   |         |       |   |        |        
|SINJISOFT Corporation                                                           |           |           |           |                |             |  |            |          |  |            |            |         |                 |          | (note a        | ) |       |   |        |         |       |   | 590     |         |       |   |        |        
|Cowon System, Inc.                                                              |           |           |           |                |             |  |            |          |  |            |            |         |                 |          | (note a        | ) |       |   |        |         |       |   | 1,600   |         |       |   |        |        
|                                                                                |           |           |            |                |             |  |             |          |  |            |             |         |                 |          |                |   |       |   |         |         |      
|                                                                                | sub-total |           |            |                |             |  |             |          |  |            |             | 465,244 |                 |          |                |   |       |   |         | 438,685 |       |   |         | 543,985 |       |   |         | 568,598 | 
|                                                                                |           |           |            |                |             |  |             |          |  |            |             |         |                 |          |                |   |       |   |         |         |      
|(Investments in non-listed companies)                                           |           |           |            |                |             |  |             |          |  |            |             |         |                 |          |                |   |       |   |         |         |       |   |         |         |       |   |         |        
|Powercomm Co., Ltd. (note b)                                                    |           |           | 7,500,000  |                |             |  | 5.0         |          |  |            | 240,243     |         |                 |          | 77,130         |   |       |   | 68,407  |         |       |   | 71,565  |         |       |   | 77,130  |        
|Japan MBCO                                                                      |           |           | 54,000     |                |             |  | 7.3         |          |  |            | 27,332      |         |                 |          | (note d        | ) |       |   | 42,517  |         |       |   | 27,332  |         |       |   | 27,332  |        
|Real Telecom Co., Ltd.                                                          |           |           | 398,722    |                |             |  | 8.3         |          |  |            | 5,981       |         |                 |          | (note c        | ) |       |   | 5,981   |         |       |   |        |         |       |   |        |        
|Enterprise Networks Co., Ltd.                                                   |           |           | 423,244    |                |             |  | 4.0         |          |  |            | 14,438      |         |                 |          | (note c        | ) |       |   | 14,438  |         |       |   |        |         |       |   |        |        
|Mirae Asset Life Insurance Co., Ltd. (formerly SK Life Insurance
    Co., Ltd.) |           |           |           |                |             |  |            |          |  |            |            |         |                 |          | (note a        | ) |       |   | 14,890  |         |       |   | 14,890  |         |       |   |        |        
|Eonex Technologies Inc.                                                         |           |           | 144,000    |                |             |  | 14.1        |          |  |            | 3,600       |         |                 |          | (note d        | ) |       |   | 4,593   |         |       |   | 4,593   |         |       |   | 4,593   |        
|WideThan Co., Ltd.                                                              |           |           |           |                |             |  |            |          |  |            |            |         |                 |          | (note e        | ) |       |   | 3,188   |         |       |   | 3,188   |         |       |   |        |        
|The Korea Economic Daily                                                        |           |           | 2,792,759  |                |             |  | 13.8        |          |  |            | 13,964      |         |                 |          | (note d        | ) |       |   | 2,077   |         |       |   | 2,077   |         |       |   | 13,964  |        
|Other                                                                           |           |           |            |                |             |  |             |          |  |            | 121,290     |         |                 |          | (notes d and f | ) |       |   | 33,210  |         |       |   | 32,472  |         |       |   | 32,212  |        
|                                                                                |           |           |            |                |             |  |             |          |  |            |             |         |                 |          |                |   |       |   |         |         |      
|                                                                                | sub-total |           |            |                |             |  |             |          |  |            |             | 426,848 |                 |          |                |   |       |   |         | 189,301 |       |   |         | 156,117 |       |   |         | 155,231 | 
|                                                                                |           |           |            |                |             |  |             |          |  |            |             |         |                 |          |                |   |       |   |         |         |      
|(Investments in funds)                                                          |           |           |            |                |             |  |             |          |  |            |             |         |                 |          |                |   |       |   |         |         |       |   |         |         |       |   |         |        
|Korea IT Fund                                                                   |           |           |            |                |             |  |             |          |  |            |             |         |                 |          | (note d        | ) |       |   | 190,000 |         |       |   | 190,000 |         |       |   | 190,000 |        
|Others                                                                          |           |           |            |                |             |  |             |          |  |            |             |         |                 |          | (notes d and g | ) |       |   | 6,406   |         |       |   | 6,406   |         |       |   | 9,992   |        
|                                                                                |           |           |            |                |             |  |             |          |  |            |             |         |                 |          |                |   |       |   |         |         |      
|                                                                                | sub-total |           |            |                |             |  |             |          |  |            |             |         |                 |          |                |   |       |   |         | 196,406 |       |   |         | 196,406 |       |   |         | 199,992 | 
|                                                                                |           |           |            |                |             |  |             |          |  |            |             |         |                 |          |                |   |       |   |         |         |      
|Total                                                                           |           |           |            |                |             |  |             |          |  |            |             |         |                 |          |                |   |       | W | 824,392 |         |       | W | 896,508 |         |       | W | 923,821 |        
|                                                                                |           |           |            |                |             |  |             |          |  |            |             |         |                 |          |                |   |       |   |         |         |      






|         |                                                                                                                                                                                                                
|-------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(note a) | The investments in common stock of SK Securities Co., Ltd.,
    SINJISOFT Corporation, Cowon Systems, Inc. and Mirae Asset Life
    Insurance Co., Ltd. were all sold for the year ended
    December 31, 2005.



|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|-------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(note b) | The Company recorded its investments in common stock of
    Powercomm Co., Ltd. at its fair value, which was estimated by an
    outside professional valuation company using the present value
    of expected future cash flow, and the unrealized loss on
    valuation of investments amounting to
    W171,836 million,
    W168,678 million and
    W163,113 million as of December 31,
    2003, 2004 and 2005, respectively, were recorded as a capital
    adjustment.

F-25



---



##### 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.



|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|-------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(note d) | 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. was reclassified to
    available-for-sale securities from equity securities accounted
    for using the equity method during 2003, as the Companys
    ownership in such investees decreased to less than 20% and the
    Company lost significant influence. 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 e) | The investment in common stock of WiderThan Co., Ltd. was
    reclassified to equity securities accounted for using the equity
    method during 2005. Although the Companys ownership in
    WiderThan Co., Ltd. is less than 20%, the Company exercises
    significant influence on the selection of directors and the
    investee has significant transactions with the Company.



|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|-------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(note f) | Due to the impairment of their investments in common stock of
    CCK Van, Biznet Tech, Hanse Telecom, Cybird Korea and Venture
    Korea in 2003, Mobilewelcom Co., Ltd., CXP Inc., LoveHunt Inc.
    and others in 2004 and TeleMerc.com, Fibernett Co., Ltd.
    and others in 2005, the Company and certain subsidiaries
    recorded impairment losses of
    W5,749 million,
    W2,580 million and
    W3,057 million for the years ended
    December 31, 2003, 2004 and 2005, respectively.



|         |                                                                                                                                                                                                 
|-------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(note g) | Due to the impairment of their investments in cinema projects,
    the Company and certain subsidiaries recorded impairment losses
    of W235 million for the year ended
    December 31, 2005.

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




|                                                           |  |          |              |              |      |   |                 |      |  |   |        |   |  |      |        |   |  |   |         | 
|---------------------------------------------------------- |  | -------- | ------------ | ------------ | ---- | - | --------------- | ---- |  | - | ------ | - |  | ---- | ------ | - |  | - | ------- | 
|                                                           |  |          |              | Acquisition  |      |   |                
|                                                           |  |          |              | Cost at      |      |   | Carrying Amount |     
|                                                           |  |          |              | December 31, |      |   |                 |     
|                                                           |  | Maturity |              |              | 2005 |   |                 | 2003 |  |   | 2004   |   |  | 2005 |       
|                                                           |  |          |              |              |      |   |                 |      |  |   |        |   |  |      |       
|Public bonds                                               |  |          | (note a      | )            |      | W | 1,599           |      |  | W | 971    |   |  | W    | 1,328  |   |  | W | 1,599   | 
|Currency stabilization bonds                               |  |          | (note b      | )            |      |   | 294,891         |      |  |   |       |   |  |      |       |   |  |   | 294,674 | 
|Convertible bonds of Real Telecom Co., Ltd. (note c)       |  |          | March 2004   |              |      |   | 10,655          |      |  |   | 9,514  |   |  |      |       |   |  |   |        | 
|Convertible bonds of Eonex Technologies, Inc. (note d)     |  |          | January 2005 |              |      |   |                |      |  |   | 3,600  |   |  |      | 3,600  |   |  |   |        | 
|Other                                                      |  |          |              |              |      |   |                |      |  |   | 230    |   |  |      | 230    |   |  |   |        | 
|                                                           |  |          |              |              |      |   |                 |      |  |   |        |   |  |      |       
|Total                                                      |  |          |              |              |      |   |                 |      |  |   | 14,315 |   |  |      | 5,158  |   |  |   | 296,273 | 
|Less current portion of available-for-sale debt securities |  |          |              |              |      |   |                 |      |  |   | (9,514 | ) |  |      | (3,700 | ) |  |   |        | 
|                                                           |  |          |              |              |      |   |                 |      |  |   |        |   |  |      |       
|Long-term available-for-sale debt securities               |  |          |              |              |      |   |                 |      |  | W | 4,801  |   |  | W    | 1,458  |   |  | W | 296,273 | 
|                                                           |  |          |              |              |      |   |                 |      |  |   |        |   |  |      |       

W W W


F-26



---



##### 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, 2003,
    2004 and 2005 are as follows (in millions of Korean won):

|                  |  |      |     |  |      |   |       |      |  |   |       | 
|----------------- |  | ---- | --- |  | ---- | - | ----- | ---- |  | - | ----- | 
|Maturity          |  | 2003 |     |  | 2004 |   |       | 2005 | 
|                  |  |      |     |  |      |   |       |      | 
|Within five years |  | W    | 857 |  |      | W | 904   |      |  | W | 1,238 | 
|Within ten years  |  |      | 114 |  |      |   | 424   |      |  |   | 361   | 
|                  |  |      |     |  |      |   |       |      | 
|                  |  | W    | 971 |  |      | W | 1,328 |      |  | W | 1,599 | 
|                  |  |      |     |  |      |   |       |      | 



|         |                                                                                                                                          
|-------- | -----------------------------------------------------------------------------------------------------------------------------------------
|(note b) | The maturities of currency stabilization bonds as of
    December 31, 2003, 2004 and 2005 are as follows (in
    millions of Korean won):

|                  |  |      |   |  |      |   |   |      |  |   |         | 
|----------------- |  | ---- | - |  | ---- | - | - | ---- |  | - | ------- | 
|Maturity          |  | 2003 |   |  | 2004 |   |   | 2005 | 
|                  |  |      |   |  |      |   |   |      | 
|Within five years |  | W    |  |  |      | W |  |      |  | W | 294,674 | 



|         |                                                                                                                                                                                                                                                                                                                                                                                                                            
|-------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(note c) | The convertible bonds of Real Telecom Co., Ltd. with a principal
    amount of W10,655 million can be converted
    into 371,018 shares of common stock of Real Telecom Co.,
    Ltd. at W28,721 per share over the period
    from September 29, 2004 to March 28, 2007. Due to the
    impairment in such bonds, the Company recorded an impairment
    loss of W10,655 million for the year ended
    December 31, 2004.



|         |                                                                                                                        
|-------- | -----------------------------------------------------------------------------------------------------------------------
|(note d) | The convertible bonds of Eonex Technologies, Inc. were all
    settled in cash during the year ended December 31, 2005.

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


Held-to


|                                                                                                      |  |          |                |              |      |   |                 |      |  |   |         |   |  |      |        |   |  |   |     |  
|----------------------------------------------------------------------------------------------------- |  | -------- | -------------- | ------------ | ---- | - | --------------- | ---- |  | - | ------- | - |  | ---- | ------ | - |  | - | --- | -
|                                                                                                      |  |          |                | Acquisition  |      |   |                
|                                                                                                      |  |          |                | Cost at      |      |   | Carrying Amount |     
|                                                                                                      |  |          |                | December 31, |      |   |                 |     
|                                                                                                      |  | Maturity |                |              | 2005 |   |                 | 2003 |  |   | 2004    |   |  | 2005 |       
|                                                                                                      |  |          |                |              |      |   |                 |      |  |   |         |   |  |      |       
|Public bonds                                                                                          |  |          | (note a        | )            |      | W | 115             |      |  | W |        |   |  | W    | 144    |   |  | W | 115 |  
|Subordinated bonds of Mirae Asset Life Insurance Co., Ltd.
    (formerly SK Life Insurance Co., Ltd.) |  |          | (note b        | )            |      |   |                |      |  |   | 50,000  |   |  |      | 50,000 |   |  |   |    |  
|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                                                                                                 |  |          |                |              |      |   |                 |      |  |   | 126,347 |   |  |      | 50,144 |   |  |   | 115 |  
|Less current portion of held-to-maturity securities                                                   |  |          |                |              |      |   |                 |      |  |   | (76,347 | ) |  |      | (9     | ) |  |   | (1  | )
|                                                                                                      |  |          |                |              |      |   |                 |      |  |   |         |   |  |      |       
|Long-term held-to-maturity securities                                                                 |  |          |                |              |      |   |                 |      |  | W | 50,000  |   |  | W    | 50,135 |   |  | W | 114 |  
|                                                                                                      |  |          |                |              |      |   |                 |      |  |   |         |   |  |      |       

held-to W W W


F-27



---



##### 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, 2005 is
    as follows (in millions of Korean won):

|                  |  |      |     | 
|----------------- |  | ---- | --- | 
|Maturity          |  | 2005 |    
|                  |  |      |    
|Within one year   |  | W    | 1   | 
|Within five years |  |      | 82  | 
|Within ten years  |  |      | 32  | 
|                  |  |      |    
|                  |  | W    | 115 | 
|                  |  |      |    



|         |                                                                                                                                                 
|-------- | ------------------------------------------------------------------------------------------------------------------------------------------------
|(note b) | The Subordinated bonds of Mirae Asset Life Insurance Co., Ltd.
    (formerly SK Life Insurance Co., Ltd.) were all early repaid
    during 2005.

W W W


b-(4). Changes in Unrealized Gains (Losses) on Valuation
on Long-term Investment Securities




|                             |  |                                      |          |   |            |   |          |                      |  |   |         |  |  |   |          |  
|---------------------------- |  | ------------------------------------ | -------- | - | ---------- | - | -------- | -------------------- |  | - | ------- |  |  | - | -------- | -
|                             |  | For the Year Ended December 31, 2003 |         
|                             |  |                                      |         
|                             |  | Beginning                            |          |   | Increase/  |   |          | Transferred to       |  |   | Ending  | 
|                             |  | Balance                              |          |   | (Decrease) |   |          | Realized Gain (Loss) |  |   | Balance | 
|                             |  |                                      |          |   |            |   |          |                      |  |   |         | 
|Digital Chosunilbo Co., Ltd. |  | W                                    | (3,353   | ) |            | W | 419      |                      |  | W |        |  |  | W | (2,934   | )
|hanarotelecom incorporated   |  |                                      | (101,788 | ) |            |   | 46,320   |                      |  |   |        |  |  |   | (55,468  | )
|KRTnet Corporation           |  |                                      | 1,522    |   |            |   | (24      | )                    |  |   |        |  |  |   | 1,498    |  
|POSCO                        |  |                                      |         |   |            |   | 71,792   |                      |  |   |        |  |  |   | 71,792   |  
|Powercomm Co., Ltd.          |  |                                      |         |   |            |   | (171,836 | )                    |  |   |        |  |  |   | (171,836 | )
|SK Securities Co., Ltd.      |  |                                      | (498     | ) |            |   | (3,176   | )                    |  |   |        |  |  |   | (3,674   | )
|                             |  |                                      |          |   |            |   |          |                      |  |   |         | 
|Total                        |  | W                                    | (104,117 | ) |            | W | (56,505  | )                    |  | W |        |  |  | W | (160,622 | )
|                             |  |                                      |          |   |            |   |          |                      |  |   |         | 

F-28



---



##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


|                             |  |                                      |          |   |            |   |        |                      |  |   |         |  |  |   |          |  
|---------------------------- |  | ------------------------------------ | -------- | - | ---------- | - | ------ | -------------------- |  | - | ------- |  |  | - | -------- | -
|                             |  | For the Year Ended December 31, 2004 |         
|                             |  |                                      |         
|                             |  | Beginning                            |          |   | Increase/  |   |        | Transferred to       |  |   | Ending  | 
|                             |  | Balance                              |          |   | (Decrease) |   |        | Realized Gain (Loss) |  |   | Balance | 
|                             |  |                                      |          |   |            |   |        |                      |  |   |         | 
|Digital Chosunilbo Co., Ltd. |  | W                                    | (2,934   | ) |            | W | (824   | )                    |  | W |        |  |  | W | (3,758   | )
|hanarotelecom incorporated   |  |                                      | (55,468  | ) |            |   | 4,811  |                      |  |   |        |  |  |   | (50,657  | )
|KRTnet Corporation           |  |                                      | 1,498    |   |            |   | (491   | )                    |  |   |        |  |  |   | 1,007    |  
|POSCO                        |  |                                      | 71,792   |   |            |   | 59,551 |                      |  |   |        |  |  |   | 131,343  |  
|INNOTG Co., Ltd.             |  |                                      |         |   |            |   | (1,543 | )                    |  |   |        |  |  |   | (1,543   | )
|SINJISOFT Corporation        |  |                                      |         |   |            |   | 460    |                      |  |   |        |  |  |   | 460      |  
|Powercomm Co., Ltd.          |  |                                      | (171,836 | ) |            |   | 3,158  |                      |  |   |        |  |  |   | (168,678 | )
|Eonex Technologies Inc.      |  |                                      |         |   |            |   | 2,011  |                      |  |   |        |  |  |   | 2,011    |  
|WiderThan Co., Ltd.          |  |                                      |         |   |            |   | (27    | )                    |  |   |        |  |  |   | (27      | )
|SK Securities Co., Ltd.      |  |                                      | (3,674   | ) |            |   | 541    |                      |  |   |        |  |  |   | (3,133   | )
|                             |  |                                      |          |   |            |   |        |                      |  |   |         | 
|Total                        |  | W                                    | (160,622 | ) |            | W | 67,647 |                      |  | W |        |  |  | W | (92,975  | )
|                             |  |                                      |          |   |            |   |        |                      |  |   |         | 

|                             |  |                                      |          |             |            |   |                      |             |  |   |                        |   |  |            |     |   |         |   |         |   |  |   |          |  
|---------------------------- |  | ------------------------------------ | -------- | ----------- | ---------- | - | -------------------- | ----------- |  | - | ---------------------- | - |  | ---------- | --- | - | ------- | - | ------- | - |  | - | -------- | -
|                             |  | For the Year Ended December 31, 2005 |         
|                             |  |                                      |         
|                             |  |                                      |          | Transferred |            |   | Minority Interest in |             |  |  
|                             |  | Beginning                            |          |             | Increase/  |   |                      | to Realized |  |   | Equity of Consolidated |   |  | Tax Effect |     |   | Ending  |  
|                             |  | Balance                              |          |             | (Decrease) |   |                      | Gain (Loss) |  |   | Subsidiaries           |   |  | (Note)     |     |   | Balance |  
|                             |  |                                      |          |             |            |   |                      |             |  |   |                        |   |  |            |     |   |         |  
|Digital Chosunilbo Co., Ltd. |  | W                                    | (3,758   | )           |            | W | 3,772                |             |  | W |                       |   |  | W          |    |   |         | W | (4      | ) |  | W | 10       |  
|hanarotelecom incorporated   |  |                                      | (50,657  | )           |            |   | (14,580              | )           |  |   |                       |   |  |            |    |   |         |   | 17,940  |   |  |   | (47,297  | )
|KRTnet Corporation           |  |                                      | 1,007    |             |            |   | 468                  |             |  |   |                       |   |  |            |    |   |         |   | (406    | ) |  |   | 1,069    |  
|POSCO                        |  |                                      | 131,343  |             |            |   | 37,220               |             |  |   |                       |   |  |            |    |   |         |   | (46,355 | ) |  |   | 122,208  |  
|INNOTG Co., Ltd.             |  |                                      | (1,543   | )           |            |   | (68                  | )           |  |   |                       |   |  |            |    |   |         |   | 443     |   |  |   | (1,168   | )
|HB Entertainment Co., Ltd.   |  |                                      |         |             |            |   | 150                  |             |  |   |                       |   |  |            | (94 | ) |         |   | (15     | ) |  |   | 41       |  
|SK Securities Co., Ltd.      |  |                                      | (3,133   | )           |            |   | 3,610                |             |  |   | (477                   | ) |  |            |    |   |         |   |        |   |  |   |         |  
|SINJISOFT Corporation        |  |                                      | 460      |             |            |   |                     |             |  |   | (460                   | ) |  |            |    |   |         |   |        |   |  |   |         |  
|Cowon Systems, Inc.          |  |                                      |         |             |            |   | 585                  |             |  |   | (585                   | ) |  |            |    |   |         |   |        |   |  |   |         |  
|Powercomm Co., Ltd.          |  |                                      | (168,678 | )           |            |   | 5,565                |             |  |   |                       |   |  |            |    |   |         |   | 44,856  |   |  |   | (118,257 | )
|Eonex Technologies Inc.      |  |                                      | 2,011    |             |            |   |                     |             |  |   |                       |   |  |            |    |   |         |   | (553    | ) |  |   | 1,458    |  
|WiderThan Co., Ltd.          |  |                                      | (27      | )           |            |   | 27                   |             |  |   |                       |   |  |            |    |   |         |   |        |   |  |   |         |  
|Currency stabilization bonds |  |                                      |         |             |            |   | (217                 | )           |  |   |                       |   |  |            |    |   |         |   | 60      |   |  |   | (157     | )
|                             |  |                                      |          |             |            |   |                      |             |  |   |                        |   |  |            |     |   |         |  
|Total                        |  | W                                    | (92,975  | )           |            | W | 36,532               |             |  | W | (1,522                 | ) |  | W          | (94 | ) |         | W | 15,966  |   |  | W | (42,093  | )
|                             |  |                                      |          |             |            |   |                      |             |  |   |                        |   |  |            |     |   |         |  






|       |                                                                                                                                                                                                                                                                                                                                
|------ | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(note) | Represents adjustments to reflect the tax effect of temporary
    differences directly charged or credited to unrealized gains
    (losses) on valuation of long-term investment securities, which
    are capital adjustment items, in accordance with SKAS
    No. 16 Income Taxes, which is effective
    January 1, 2005.

F-29



---



##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |                                                        
|-- | -------------------------------------------------------
|5. | EQUITY SECURITIES ACCOUNTED FOR USING THE EQUITY METHOD



|                                                       |  |              |            |  |                 |  |       |              |  |   |              |  |  |                 |         |           |      |   |         |      |  |   |         |  |  |   |         | 
|------------------------------------------------------ |  | ------------ | ---------- |  | --------------- |  | ----- | ------------ |  | - | ------------ |  |  | --------------- | ------- | --------- | ---- | - | ------- | ---- |  | - | ------- |  |  | - | ------- | 
|                                                       |  | Number of    |            |  | Ownership       |  |       | Acquisition  |  |   | Net Asset    |  |  |                
|                                                       |  | Shares at    |            |  | Percentage (%)  |  |       | Cost at      |  |   | Value at     |  |  | Carrying Amount |        
|                                                       |  | December 31, |            |  | at December 31, |  |       | December 31, |  |   | December 31, |  |  |                 |        
|                                                       |  | 2005         |            |  | 2005            |  |       | 2005         |  |   | 2005         |  |  | 2003            |         |           | 2004 |   |         | 2005 | 
|                                                       |  |              |            |  |                 |  |       |              |  |   |              |  |  |                 |         |           |      |   |         |      | 
|Pantech Co., Ltd.
    (formerly SK Teletech Co., Ltd.) |  |              | 25,570,306 |  |                 |  | 22.7  |              |  | W | 26,309       |  |  | W               | 54,939  | (note a)  |      | W |        |      |  | W |        |  |  | W | 55,732  | 
|SK C&C Co., Ltd.                                       |  |              | 300,000    |  |                 |  | 30.0  |              |  |   | 19,071       |  |  |                 | 163,374 |           |      |   | 92,844  |      |  |   | 201,484 |  |  |   | 168,244 | 
|STIC Ventures Co., Ltd.                                |  |              | 1,600,000  |  |                 |  | 21.9  |              |  |   | 8,000        |  |  |                 | 8,379   |           |      |   | 7,086   |      |  |   | 7,477   |  |  |   | 8,379   | 
|TU Media Corp.                                         |  |              | 12,922,266 |  |                 |  | 29.6  |              |  |   | 64,611       |  |  |                 | 31,350  | (note b)  |      |   |        |      |  |   | 34,592  |  |  |   | 32,343  | 
|VCASH Co., Ltd.                                        |  |              |           |  |                 |  |      |              |  |   |             |  |  |                 |        | (note c)  |      |   | 1,048   |      |  |   |        |  |  |   |        | 
|Aircross Co., Ltd.                                     |  |              | 600,000    |  |                 |  | 38.1  |              |  |   | 300          |  |  |                 | 966     | (note  d) |      |   | 300     |      |  |   | 940     |  |  |   | 966     | 
|WiderThan Co., Ltd.                                    |  |              | 2,000,000  |  |                 |  | 10.1  |              |  |   | 1,000        |  |  |                 | 11,503  | (note e)  |      |   | 3,188   |      |  |   |        |  |  |   | 11,503  | 
|IHQ, Inc.                                              |  |              | 8,000,000  |  |                 |  | 21.6  |              |  |   | 14,440       |  |  |                 | 8,488   | (note f)  |      |   |        |      |  |   |        |  |  |   | 14,755  | 
|Harex Info Tech, Inc.                                  |  |              | 225,000    |  |                 |  | 21.2  |              |  |   | 3,375        |  |  |                 | 1,128   | (note g)  |      |   |        |      |  |   | 3,375   |  |  |   | 2,530   | 
|Skytel Co., Ltd.                                       |  |              | 1,756,000  |  |                 |  | 28.6  |              |  |   | 2,159        |  |  |                 | 4,786   |           |      |   | 3,401   |      |  |   | 3,713   |  |  |   | 4,786   | 
|SK China Company Ltd.                                  |  |              | 28,160     |  |                 |  | 20.7  |              |  |   | 3,195        |  |  |                 | 1,571   |           |      |   | 1,683   |      |  |   | 830     |  |  |   | 485     | 
|HELIO, LLC                                             |  |              | 50,000,000 |  |                 |  | 50.0  |              |  |   | 163,600      |  |  |                 | 102,272 | (note h)  |      |   |        |      |  |   |        |  |  |   | 102,272 | 
|SK USA, Inc.                                           |  |              | 49         |  |                 |  | 49.0  |              |  |   | 3,184        |  |  |                 | 3,279   | (note d)  |      |   | 3,184   |      |  |   | 3,056   |  |  |   | 3,279   | 
|SKT-QC Wireless Development Fund                       |  |              |            |  |                 |  |      |              |  |   |             |  |  |                 |        |           |      |   | 5,901   |      |  |   | 5,146   |  |  |   |        | 
|SKT-HP Ventures, LLC                                   |  |              |            |  |                 |  | 50.0  |              |  |   | 6,415        |  |  |                 | 5,290   |           |      |   | 5,960   |      |  |   | 5,281   |  |  |   | 5,290   | 
|CDMA Mobile Phone Center                               |  |              | 40,286,825 |  |                 |  | 50.0  |              |  |   | 75,680       |  |  |                 | 40,810  |           |      |   | 49,444  |      |  |   | 25,117  |  |  |   | 40,810  | 
|SK Mobile                                              |  |              |           |  |                 |  |      |              |  |   |             |  |  |                 |        |           |      |   |        |      |  |   | 1,151   |  |  |   |        | 
|Cyworld Japan Co., Ltd.                                |  |              | 500,000    |  |                 |  | 100.0 |              |  |   | 4,466        |  |  |                 | 3,252   | (note i)  |      |   |        |      |  |   |        |  |  |   | 726     | 
|Etoos Group Inc.                                       |  |              | 3,036,353  |  |                 |  | 20.5  |              |  |   | 3,095        |  |  |                 | 1,005   |           |      |   |        |      |  |   |        |  |  |   | 2,586   | 
|Other investments in affiliates                        |  |              |            |  |                 |  |       |              |  |   | 17,709       |  |  |                 |         | (note j)  |      |   | 9,670   |      |  |   | 11,866  |  |  |   | 17,193  | 
|                                                       |  |              |            |  |                 |  |       |              |  |   |              |  |  |                 |         |           |      |   |         |      | 
|Total                                                  |  |              |            |  |                 |  |       |              |  | W | 416,609      |  |  |                 |         |           |      | W | 183,709 |      |  | W | 304,028 |  |  | W | 471,879 | 
|                                                       |  |              |            |  |                 |  |       |              |  |   |              |  |  |                 |         |           |      |   |         |      | 






|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|-------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(note a) | 60% equity interest in SK Teletech Co., Ltd. were sold to
    Curitel Communications, Inc. and the Company recorded a gain of
    W178,689 million for the year ended
    December 31, 2005. As the Companys ownership in SK
    Teletech Co., Ltd. decreased from 89.1% to 29.1%, SK Teletech
    Co., Ltd. was excluded from the consolidation, effective
    July 1, 2005. And, the investments in common stock of SK
    Teletech Co., Ltd. were accounted for using the equity method of
    accounting for the six months ended December 31, 2005. In
    addition, effective December 1, 2005, SK Teletech Co., Ltd
    was merged into Pantech Co., Ltd. and the Companys
    ownership interest decreased from 29.1% to 22.7%. The difference
    between the Companys portion of the merged companys
    equity and the carrying amount at the date of merger of
    W269 million was recorded as a loss on
    disposal of investment assets.
|        
|(note b) | 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
    investments in common stock of TU Media Corp. are accounted
    for using the equity method of accounting.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|        
|(note c) | The investments in common stock of VCASH Co., Ltd. were
    sold to Korea Railway Transportation Promotion Foundation
    in 2004.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          

F-30



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##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|         |                                                                                                                                                                                                                                                                                                                                                                                                           
|-------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(note d) | Effective January 1, 2004, the Company recorded its
    investments in Aircross Co., Ltd. and SK USA, Inc. using
    the equity method of accounting as changes in the Companys
    portion of such investees equity amounts resulting from
    applying the equity method of accounting is material.                                                                                                   
|        
|(note e) | Effective January 1, 2005, the investment in common stock
    of WiderThan Co., Ltd. was reclassified to equity securities
    accounted for using the equity method. Although the
    Companys ownership in WiderThan Co., Ltd. is less than
    20%, the Company exercises significant influences on the
    selection of directors and the investee has significant
    transactions with the Company.
|        
|(note f) | In February 2005, the Company acquired 8,000,000 shares of
    IHQ, Inc., an entertainment management company, for
    W1,805 per share with an option to
    purchase an additional 5,000,000 shares at the previously
    agreed upon price during the period from March 15, 2006 to
    April 30, 2006, in order to secure high-quality content for
    the Companys wireless internet services.      
|        
|(note g) | Effective January 1, 2005, the Company recorded its
    investments in Harex Info Tech, Inc. using the equity method of
    accounting as changes in the Companys portion of such
    investees equity amounts resulting from applying the
    equity method of accounting is material.                                                                                                                 
|        
|(note h) | In the first quarter of 2005, the Company incorporated
    SK Telecom USA Holdings, Inc. with an initial investment of
    US$83 million in order to invest in and manage
    HELIO, LLC, a joint venture company in the Untied States of
    America, which was established in order to provide wireless
    telecommunication services in the United States of America (see
    Note 29. (b)).          
|        
|(note i) | Even though the Company and its subsidiarys ownership
    interest is 100%, Cyworld Japan Co., Ltd. is excluded from the
    consolidation and accounted for using the equity method as its
    total assets at the beginning of the fiscal year were less than
    W7 billion, in accordance with Korean GAAP.                                                                                          
|        
|(note j) | As allowed under Korean GAAP, investments in equity securities
    of SK Telecom Europe Limited and certain others were not
    accounted for using the equity method of accounting, as changes
    in the Companys portion of shareholders equity of
    such investees were not expected to be material.                                                                                              



|                                |  |          |  |                                      |         |           |             |   |           |          |  |                 |         |   |             |             |     |          |          |   |        |          |  |        |         |   |  |   |        |   |  |   |         | 
|------------------------------- |  | -------- |  | ------------------------------------ | ------- | --------- | ----------- | - | --------- | -------- |  | --------------- | ------- | - | ----------- | ----------- | --- | -------- | -------- | - | ------ | -------- |  | ------ | ------- | - |  | - | ------ | - |  | - | ------- | 
|                                |  |          |  | For the Year Ended December 31, 2003 |        
|                                |  |          |  |                                      |        
|                                |  |          |  |                                      |         | Equity in |             |   |          
|                                |  |          |  |                                      |         | Equity in |             |   | Equity in |          |  | Capital Surplus |         |   |            
|                                |  |          |  | Beginning                            |         |           |             |   | Earnings  |          |  | Retained        |         |   | and Capital |             |     | Dividend |          |   | Other  |          |  | Ending |        
|                                |  |          |  | Balance                              |         |           | Acquisition |   |           | (Losses) |  |                 | Earning |   |             | Adjustments |     |          | Received |   |        | Decrease |  |        | 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.         |  | (note a) |  |                                      | 6,884   |           |             |   |          |          |  |                 | 44      |   |             |             | (3  | )        |          |   | 161    |          |  |        |        |   |  |   |       |   |  |   | 7,086   | 
|Eonex Technologies, Inc.        |  | (note b) |  |                                      | 4,615   |           |             |   |          |          |  |                 | (22     | ) |             |             |    |          |          |   |       |          |  |        |        |   |  |   | (4,593 | ) |  |   |        | 
|VCASH Co., Ltd.                 |  | (note a) |  |                                      | 2,232   |           |             |   |          |          |  |                 | (1,353  | ) |             |             | (30 | )        |          |   | 199    |          |  |        |        |   |  |   |       |   |  |   | 1,048   | 
|WiderThan Co., Ltd.             |  |          |  |                                      | 1,750   |           |             |   |          |          |  |                 | 1,465   |   |             |             |    |          |          |   | (27    | )        |  |        |        |   |  |   |       |   |  |   | 3,188   | 
|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 c) |  |                                      | 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) | 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

F-31



---



##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|         |                                                                                                                                                                                                                                                                                                                                           
|-------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|         | 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 b) | 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 c) | The other 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., an overseas subsidiary of the Company, which
    makes investments in CDMA Mobile Phone Center, into Korean won.

|                                |  |          |  |                                      |         |           |             |   |                 |          |  |             |             |   |          |          |        |       |          |   |        |         |  |   |         |   |  |   |         | 
|------------------------------- |  | -------- |  | ------------------------------------ | ------- | --------- | ----------- | - | --------------- | -------- |  | ----------- | ----------- | - | -------- | -------- | ------ | ----- | -------- | - | ------ | ------- |  | - | ------- | - |  | - | ------- | 
|                                |  |          |  | For the Year Ended December 31, 2004 |        
|                                |  |          |  |                                      |        
|                                |  |          |  |                                      |         | Equity in |             |   |                
|                                |  |          |  |                                      |         | Equity in |             |   | Capital Surplus |          |  |            
|                                |  |          |  | Beginning                            |         |           |             |   | Earnings        |          |  | and Capital |             |   | Dividend |          |        | Other |          |   | Ending |        
|                                |  |          |  | Balance                              |         |           | Acquisition |   |                 | (Losses) |  |             | Adjustments |   |          | Received |        |       | Decrease |   |        | 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   | 
|TU Media Corp.                  |  |          |  |                                      | 38,681  |           |             |   |                |          |  |             | (4,213      | ) |          |          | 124    |       |          |   |       |         |  |   |        |   |  |   | 34,592  | 
|VCASH Co., Ltd.                 |  |          |  |                                      | 1,048   |           |             |   |                |          |  |             | (657        | ) |          |          |       |       |          |   |       |         |  |   | (391    | ) |  |   |        | 
|Aircross Co., Ltd.              |  | (note a) |  |                                      | 300     |           |             |   |                |          |  |             | 659         |   |          |          | (19    | )     |          |   |       |         |  |   |        |   |  |   | 940     | 
|WiderThan Co., Ltd.             |  | (note b) |  |                                      | 3,188   |           |             |   |                |          |  |             |            |   |          |          |       |       |          |   |       |         |  |   | (3,188  | ) |  |   |        | 
|Skytel Co., Ltd.                |  |          |  |                                      | 3,401   |           |             |   |                |          |  |             | 1,070       |   |          |          | (603   | )     |          |   | (155   | )       |  |   |        |   |  |   | 3,713   | 
|SK China Co., Ltd.              |  |          |  |                                      | 1,683   |           |             |   |                |          |  |             | (595        | ) |          |          | (258   | )     |          |   |       |         |  |   |        |   |  |   | 830     | 
|SK USA, Inc.                    |  | (note a) |  |                                      | 3,184   |           |             |   |                |          |  |             | 168         |   |          |          | (296   | )     |          |   |       |         |  |   |        |   |  |   | 3,056   | 
|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        |  | (note c) |  |                                      | 49,444  |           |             |   | 5,979           |          |  |             | (21,651     | ) |          |          |       |       |          |   |       |         |  |   | (8,655  | ) |  |   | 25,117  | 
|                                |  |          |  |                                      |         |           |             |   |                 |          |  |             |             |   |          |          |        |       |          |   |        |         | 
|                                |  |          |  | 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% form 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.

F-32



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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, 2005 |        
|                                 |  |          |  |                                      |        
|                                 |  |          |  |                                      |         | Equity in |             |   |            
|                                 |  |          |  |                                      |         | Capital   |             |   |            
|                                 |  |          |  |                                      |         | Equity in |             |   | Surplus and |          |  |         |             | Other |          |          |        
|                                 |  |          |  | Beginning                            |         |           |             |   | Earnings    |          |  | Capital |             |       | Dividend |          |         | Increase |            |   | Ending |        
|                                 |  |          |  | Balance                              |         |           | Acquisition |   |             | (Losses) |  |         | Adjustments |       |          | Received |         |          | (Decrease) |   |        | Balance | 
|                                 |  |          |  |                                      |         |           |             |   |             |          |  |         |             |       |          |          |         |          |            |   |        |         | 
|Pantech Co., Ltd.                |  | (note a) |  | W                                    |        |           |             | W |            |          |  | W       | 93          |       |          | W        | (183    | )        |            | W |       |         |  | W | 55,822  |   |  | W | 55,732  | 
|SK C&C Co., Ltd.                 |  | (note b) |  |                                      | 201,484 |           |             |   |            |          |  |         | 18,102      |       |          |          | (50,742 | )        |            |   | (600   | )       |  |   |        |   |  |   | 168,244 | 
|STIC Ventures Co., Ltd.          |  | (note c) |  |                                      | 7,477   |           |             |   |            |          |  |         | (779        | )     |          |          | 317     |          |            |   |       |         |  |   | 1,364   |   |  |   | 8,379   | 
|TU Media Corp.                   |  |          |  |                                      | 34,592  |           |             |   | 25,611      |          |  |         | (27,852     | )     |          |          | (8      | )        |            |   |       |         |  |   |        |   |  |   | 32,343  | 
|Aircross Co., Ltd.               |  |          |  |                                      | 940     |           |             |   |            |          |  |         | 26          |       |          |          |        |          |            |   |       |         |  |   |        |   |  |   | 966     | 
|WiderThan Co., Ltd.              |  | (note d) |  |                                      |        |           |             |   |            |          |  |         | 868         |       |          |          | 7       |          |            |   |       |         |  |   | 10,628  |   |  |   | 11,503  | 
|IHQ, Inc.                        |  | (note c) |  |                                      |        |           |             |   | 14,440      |          |  |         | (197        | )     |          |          | 410     |          |            |   |       |         |  |   | 102     |   |  |   | 14,755  | 
|Harex Info Tech, Inc.            |  | (note e) |  |                                      | 3,375   |           |             |   |            |          |  |         | (845        | )     |          |          |        |          |            |   |       |         |  |   |        |   |  |   | 2,530   | 
|Skytel Co., Ltd.                 |  | (note b) |  |                                      | 3,713   |           |             |   |            |          |  |         | 1,377       |       |          |          | (120    | )        |            |   | (184   | )       |  |   |        |   |  |   | 4,786   | 
|SK China Company Ltd.            |  |          |  |                                      | 830     |           |             |   |            |          |  |         | (295        | )     |          |          | (50     | )        |            |   |       |         |  |   |        |   |  |   | 485     | 
|HELIO, LLC                       |  | (note f) |  |                                      |        |           |             |   | 123,586     |          |  |         | (21,550     | )     |          |          |        |          |            |   |       |         |  |   | 236     |   |  |   | 102,272 | 
|SK USA, Inc.                     |  |          |  |                                      | 3,056   |           |             |   |            |          |  |         | 316         |       |          |          | (93     | )        |            |   |       |         |  |   |        |   |  |   | 3,279   | 
|SKT-QC Wireless Development Fund |  | (note g) |  |                                      | 5,146   |           |             |   |            |          |  |         |            |       |          |          |        |          |            |   |       |         |  |   | (5,146  | ) |  |   |        | 
|SKT-HP Ventures, LLC             |  |          |  |                                      | 5,281   |           |             |   |            |          |  |         | 167         |       |          |          | (158    | )        |            |   |       |         |  |   |        |   |  |   | 5,290   | 
|CDMA Mobile Phone Center         |  | (note h) |  |                                      | 25,116  |           |             |   | 33,950      |          |  |         | (13,376     | )     |          |          |        |          |            |   |       |         |  |   | (4,880  | ) |  |   | 40,810  | 
|SK Mobile                        |  | (note i) |  |                                      | 1,151   |           |             |   | 14,213      |          |  |         | (2,566      | )     |          |          | (22     | )        |            |   |       |         |  |   | (12,776 | ) |  |   |        | 
|Cyworld Japan Co., Ltd.          |  |          |  |                                      |        |           |             |   | 4,466       |          |  |         | (3,867      | )     |          |          | 127     |          |            |   |       |         |  |   |        |   |  |   | 726     | 
|Etoos Group Inc.                 |  |          |  |                                      |        |           |             |   | 3,095       |          |  |         | (498        | )     |          |          | (11     | )        |            |   |       |         |  |   |        |   |  |   | 2,586   | 
|                                 |  |          |  |                                      |         |           |             |   |             |          |  |         |             |       |          |          |         |          |            |   |        |         | 
|                                 |  |          |  | W                                    | 292,161 |           |             | W | 219,361     |          |  | W       | (50,876     | )     |          | W        | (50,526 | )        |            | W | (784   | )       |  | W | 45,350  |   |  | W | 454,686 | 
|                                 |  |          |  |                                      |         |           |             |   |             |          |  |         |             |       |          |          |         |          |            |   |        |         | 






|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|-------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(note a) | The other increase in investments in equity securities of
    Pantech Co., Ltd. is net of the carrying amount of the
    investment in equity securities of SK Teletech Co., Ltd.
    amounting to W56,091 million reclassified
    to equity securities accounted for using the equity method as a
    result of the decrease in the Companys ownership in SK
    Teletech Co., Ltd. to less than 50% and the dilution of the
    Companys equity portion of
    W269 million as a result of the merger
    between Pantech Co., Ltd. and SK Teletech Co., Ltd.                      
|        
|(note b) | The Company received dividends from SK C&C Co., Ltd. and
    Skytel Co., Ltd. and the corresponding amount was deducted from
    its equity method securities.                                                                                                                                                                                                                                                                                                                                                                                                                          
|        
|(note c) | The other increases in investments in equity securities of STIC
    Ventures Co., Ltd. and IHQ, Inc. represent gains on disposal of
    investments in equity securities resulting from the dilution of
    the Companys ownership as a result of the fact that
    investees sold its unissued shares to third parties directly.                                                                                                                                                                                                                                                      
|        
|(note d) | The other increase in investments in equity securities of
    WiderThan Co., Ltd. represents the carrying amount of the
    investment in equity securities of WiderThan Co., Ltd. amounting
    to W3,188 million reclassified to equity
    securities accounted for using the equity method from
    available-for-sale securities and gains on disposal of
    investments in equity method investee of
    W7,440 million resulting from the dilution
    of the Companys ownership as a result of the fact that
    investees sold its unissued shares to third parties directly.
|        
|(note e) | Effective January 1, 2005, the Company recorded its
    investments in Harex Info Tech, Inc. using the equity method of
    accounting as changes in the Companys portion of such
    investees equity amounts resulting from applying the
    equity method of accounting is material.                                                                                                                                                                                                                                                                                               

F-33



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##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|-------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(note f) | The increase in investments in equity securities of HELIO, LLC
    represents a translation gain incurred from translating the
    financial statements of SK Telecom USA Holdings, Inc.
    denominated in foreign currency, which makes investments in
    HELIO, LLC, into Korean won.                                                                                                                                                                                                                                                                                                                
|        
|(note g) | Investment was fully liquidated due to dissolution of SKT-QC
    Wireless Development Fund during the year ended
    December 31, 2005.                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|        
|(note h) | During the year ended December 31, 2005, SLD got the
    reimbursement of W3,956 million from CDMA
    Mobile Phone Center and decreased the investment in CDMA Mobile
    Phone Center by the same amount. In addition, translation loss
    of W924 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.                                                                                                                                      
|        
|(note i) | Effective January 1, 2005, SK Mobile became an equity
    method investee of SK Teletech Co., Ltd., a former
    subsidiary of the Company as changes in SK Teletech Co.,
    Ltd.s portion of such investees equity amounts
    resulting from applying the equity method of accounting was
    material. Effective July 1, 2005, the investment in equity
    securities of SK Teletech Co., Ltd. was reclassified to
    equity securities accounted for using the equity method, which
    resulted in the exclusion of SK Mobile from equity
    securities accounted for using the equity method.



|                 |  |                                      |       |  |          |   |        |              |  |   |         |   |  |   |       | 
|---------------- |  | ------------------------------------ | ----- |  | -------- | - | ------ | ------------ |  | - | ------- | - |  | - | ----- | 
|                 |  | For the Year Ended December 31, 2003 |      
|                 |  |                                      |      
|                 |  | Beginning                            |       |  |          |   | Ending |             
|                 |  | Balance                              |       |  | Increase |   |        | Amortization |  |   | Balance |  
|                 |  |                                      |       |  |          |   |        |              |  |   |         |  
|SK C&C Co., Ltd. |  | W                                    | 6,088 |  |          | W |       |              |  | W | (406    | ) |  | W | 5,682 | 
|                 |  |                                      |       |  |          |   |        |              |  |   |         |  

|                 |  |                                      |       |  |          |   |        |              |  |   |         |   |  |   |       | 
|---------------- |  | ------------------------------------ | ----- |  | -------- | - | ------ | ------------ |  | - | ------- | - |  | - | ----- | 
|                 |  | For the Year Ended December 31, 2004 |      
|                 |  |                                      |      
|                 |  | Beginning                            |       |  |          |   | Ending |             
|                 |  | Balance                              |       |  | Increase |   |        | Amortization |  |   | Balance |  
|                 |  |                                      |       |  |          |   |        |              |  |   |         |  
|SK C&C Co., Ltd. |  | W                                    | 5,682 |  |          | W |       |              |  | W | (406    | ) |  | W | 5,276 | 
|                 |  |                                      |       |  |          |   |        |              |  |   |         |  

|                      |  |                                      |       |  |          |   |        |              |  |   |         |   |  |   |        | 
|--------------------- |  | ------------------------------------ | ----- |  | -------- | - | ------ | ------------ |  | - | ------- | - |  | - | ------ | 
|                      |  | For the Year Ended December 31, 2005 |      
|                      |  |                                      |      
|                      |  | Beginning                            |       |  |          |   | Ending |             
|                      |  | Balance                              |       |  | Increase |   |        | Amortization |  |   | Balance |  
|                      |  |                                      |       |  |          |   |        |              |  |   |         |  
|Pantech Co., Ltd.     |  | W                                    |      |  |          | W | 820    |              |  | W | (27     | ) |  | W | 793    | 
|SK C&C Co., Ltd.      |  |                                      | 5,276 |  |          |   |       |              |  |   | (406    | ) |  |   | 4,870  | 
|TU Media Corp.        |  |                                      |      |  |          |   | 1,045  |              |  |   | (52     | ) |  |   | 993    | 
|IHQ, Inc.             |  |                                      |      |  |          |   | 7,377  |              |  |   | (1,110  | ) |  |   | 6,267  | 
|Harex Info Tech, Inc. |  |                                      |      |  |          |   | 1,752  |              |  |   | (350    | ) |  |   | 1,402  | 
|Etoos Group Inc.      |  |                                      |      |  |          |   | 1,914  |              |  |   | (333    | ) |  |   | 1,581  | 
|                      |  |                                      |       |  |          |   |        |              |  |   |         |  
|Total                 |  | W                                    | 5,276 |  |          | W | 12,908 |              |  | W | (2,278  | ) |  | W | 15,906 | 
|                      |  |                                      |       |  |          |   |        |              |  |   |         |  

F-34



---



##### 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                              |   |  | Increase |   |        | Decrease |  |   | Balance | 
|                      |  |                                      |   |  |          |   |        |          |  |   |         | 
|SK China Company Ltd. |  | W                                    |  |  |          | W | 1,086  |          |  | W |        |  |  | W | 1,086 | 
|                      |  |                                      |   |  |          |   |        |          |  |   |         | 

|                        |  |                                      |       |  |          |   |        |          |  |   |         |   |  |   |       | 
|----------------------- |  | ------------------------------------ | ----- |  | -------- | - | ------ | -------- |  | - | ------- | - |  | - | ----- | 
|                        |  | For the Year Ended December 31, 2005 |      
|                        |  |                                      |      
|                        |  | Beginning                            |       |  |          |   | Ending |         
|                        |  | Balance                              |       |  | Increase |   |        | Decrease |  |   | Balance |  
|                        |  |                                      |       |  |          |   |        |          |  |   |         |  
|SK China Company Ltd.   |  | W                                    | 1,086 |  |          | W |       |          |  | W |        |   |  | W | 1,086 | 
|Cyworld Japan Co., Ltd. |  |                                      |      |  |          |   | 2,569  |          |  |   | (43     | ) |  |   | 2,526 | 
|                        |  |                                      |       |  |          |   |        |          |  |   |         |  
|Total                   |  | W                                    | 1,086 |  |          | W | 2,569  |          |  | W | (43     | ) |  | W | 3,612 | 
|                        |  |                                      |       |  |          |   |        |          |  |   |         |  



|                    |  |               |        |                |  |        |            |  |  |   |         | 
|------------------- |  | ------------- | ------ | -------------- |  | ------ | ---------- |  |  | - | ------- | 
|                    |  | Market Price  |        |                |  |       
|                    |  | per Share (in |        | Shares Owned   |  | Market
|                    |  | Korean Won)   |        | by the Company |  | Price 
|                    |  |               |        |                |  |       
|Pantech Co., Ltd.   |  | W             | 5,900  |                |  |        | 25,570,306 |  |  | W | 150,865 | 
|WiderThan Co., Ltd. |  |               | 15,408 |                |  |        | 2,000,000  |  |  |   | 30,816  | 
|IHQ, Inc.           |  |               | 9,220  |                |  |        | 8,000,000  |  |  |   | 73,760  | 



|                         |  |              |           |             |  |         |           |            |  |   |           |  |  |   |         |  
|------------------------ |  | ------------ | --------- | ----------- |  | ------- | --------- | ---------- |  | - | --------- |  |  | - | ------- | -
|                         |  |              |           | Total       |  |         |           | Net Income
|                         |  | Total Assets |           | Liabilities |  | Revenue |           | (Loss)    
|                         |  |              |           |             |  |         |           |           
|Pantech Co., Ltd.        |  | W            | 843,996   |             |  | W       | 604,118   |            |  | W | 655,089   |  |  | W | (21,745 | )
|SK C&C Co., Ltd.         |  |              | 1,544,980 |             |  |         | 1,000,400 |            |  |   | 1,002,668 |  |  |   | 61,693  |  
|STIC Ventures Co., Ltd.  |  |              | 57,040    |             |  |         | 18,755    |            |  |   | 11,845    |  |  |   | (3,347  | )
|TU Media Corp.           |  |              | 393,945   |             |  |         | 287,966   |            |  |   | 21,550    |  |  |   | (96,487 | )
|Aircross Co., Ltd.       |  |              | 12,178    |             |  |         | 9,642     |            |  |   | 15,240    |  |  |   | 69      |  
|WiderThan Co., Ltd.      |  |              | 155,388   |             |  |         | 37,773    |            |  |   | 78,467    |  |  |   | 4,052   |  
|IHQ, Inc.                |  |              | 65,487    |             |  |         | 24,661    |            |  |   | 50,123    |  |  |   | 6,235   |  
|Harex Info Tech, Inc.    |  |              | 5,977     |             |  |         | 648       |            |  |   | 1,173     |  |  |   | (2,337  | )
|Skytel Co., Ltd.         |  |              | 23,812    |             |  |         | 6,387     |            |  |   | 13,580    |  |  |   | 4,824   |  
|SK China Company Ltd.    |  |              | 8,121     |             |  |         | 536       |            |  |   | 1,849     |  |  |   | (1,423  | )
|HELIO, LLC               |  |              | 225,322   |             |  |         | 20,733    |            |  |   | 24,812    |  |  |   | (43,100 | )
|SK USA, Inc.             |  |              | 8,387     |             |  |         | 1,695     |            |  |   | 8,139     |  |  |   | 646     |  
|SKT-HP Ventures, LLC     |  |              | 10,584    |             |  |         | 5         |            |  |   | 342       |  |  |   | 333     |  
|CDMA Mobile Phone Center |  |              | 110,468   |             |  |         | 28,847    |            |  |   | 27,359    |  |  |   | (26,750 | )
|Cyworld Japan Co., Ltd.  |  |              | 4,689     |             |  |         | 1,914     |            |  |   | 9         |  |  |   | (1,594  | )
|Etoos Group Inc.         |  |              | 14,814    |             |  |         | 9,898     |            |  |   | 14,042    |  |  |   | (5,739  | )

F-35



---



##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


6.   LOANS TO EMPLOYEES




|                                                  |  |      |        |  |      |   |        |      |  |   |        | 
|------------------------------------------------- |  | ---- | ------ |  | ---- | - | ------ | ---- |  | - | ------ | 
|                                                  |  | 2003 |        |  | 2004 |   |        | 2005 | 
|                                                  |  |      |        |  |      |   |        |      | 
|Loans to employees stock ownership association   |  | W    | 33,788 |  |      | W | 22,546 |      |  | W | 14,586 | 
|Loans to employees for housing and other (3 - 4%) |  |      | 8,587  |  |      |   | 8,859  |      |  |   | 4,799  | 
|                                                  |  |      |        |  |      |   |        |      | 
|                                                  |  | W    | 42,375 |  |      | W | 31,405 |      |  | W | 19,385 | 
|                                                  |  |      |        |  |      |   |        |      | 

7.   PROPERTY AND EQUIPMENT




|                              |  |         |  |      |            |   |      |   |            |      |  |   |            |  
|----------------------------- |  | ------- |  | ---- | ---------- | - | ---- | - | ---------- | ---- |  | - | ---------- | -
|                              |  | Useful  |  |      |            |   |      |  
|                              |  | Lives   |  |      |            |   |      |  
|                              |  | (Years) |  | 2003 |            |   | 2004 |   |            | 2005 | 
|                              |  |         |  |      |            |   |      |   |            |      | 
|Land                          |  |         |  | W    | 449,377    |   |      | W | 466,459    |      |  | W | 466,562    |  
|Buildings and structures      |  | 15, 30  |  |      | 1,081,134  |   |      |   | 1,445,593  |      |  |   | 1,484,360  |  
|Machinery                     |  | 3-6     |  |      | 8,440,624  |   |      |   | 9,584,526  |      |  |   | 10,510,486 |  
|Vehicles                      |  | 3-4     |  |      | 19,741     |   |      |   | 21,710     |      |  |   | 21,680     |  
|Other                         |  | 3-4     |  |      | 794,495    |   |      |   | 791,829    |      |  |   | 825,133    |  
|Construction in progress      |  |         |  |      | 323,490    |   |      |   | 138,002    |      |  |   | 264,309    |  
|                              |  |         |  |      |            |   |      |   |            |      | 
|Total                         |  |         |  |      | 11,108,861 |   |      |   | 12,448,119 |      |  |   | 13,572,530 |  
|Less accumulated depreciation |  |         |  |      | (6,467,314 | ) |      |   | (7,744,197 | )    |  |   | (8,909,161 | )
|                              |  |         |  |      |            |   |      |   |            |      | 
|Property and equipment, net   |  |         |  | W    | 4,641,547  |   |      | W | 4,703,922  |      |  | W | 4,663,369  |  
|                              |  |         |  |      |            |   |      |   |            |      | 

W W W




|                         |       |                                      |           |           |             |   |         |           |  |   |          |         |   |              |           |          |         |   |            |            |   |   |           |           | 
|------------------------ | ----- | ------------------------------------ | --------- | --------- | ----------- | - | ------- | --------- |  | - | -------- | ------- | - | ------------ | --------- | -------- | ------- | - | ---------- | ---------- | - | - | --------- | --------- | 
|                         |       | 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-36



---



##### 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 | 
|                         |       |                                      |           |           |             |   |         |           |  |   |          |         |   |              |           |          |         |  

|                         |       |                                      |           |           |             |   |         |           |  |   |          |         |   |              |          |         |         |   |            |            |   |   |           |           | 
|------------------------ | ----- | ------------------------------------ | --------- | --------- | ----------- | - | ------- | --------- |  | - | -------- | ------- | - | ------------ | -------- | ------- | ------- | - | ---------- | ---------- | - | - | --------- | --------- | 
|                         |       | For the Year Ended December 31, 2005 |          
|                         |       |                                      |          
|                         |       | Beginning                            |           |           |             |   | Ending  |          
|                         |       | Balance                              |           |           | Acquisition |   |         | Disposal  |  |   | Transfer |         |   | Depreciation |          |         | Balance |  
|                         |       |                                      |           |           |             |   |         |           |  |   |          |         |   |              |          |         |         |  
|Land                     |       | W                                    | 466,460   |           |             | W | 723     |           |  | W | (4,698   | )       |   | W            | 4,077    |         |         | W |           |            |   | W | 466,562   |          
|Buildings and structures |       |                                      | 1,166,542 |           |             |   | 12,581  |           |  |   | (8,095   | )       |   |              | 35,472   |         |         |   | (55,406    | )          |   |   | 1,151,094 |          
|Machinery                |       |                                      | 2,643,107 |           |             |   | 54,681  |           |  |   | (18,990  | )       |   |              | 983,489  |         |         |   | (1,182,664 | )          |   |   | 2,479,623 |          
|Vehicles                 |       |                                      | 4,791     |           |             |   | 1,620   |           |  |   | (250     | )       |   |              | (232     | )       |         |   | (2,530     | )          |   |   | 3,399     |          
|Other                    |       |                                      | 285,020   |           |             |   | 766,708 |           |  |   | (3,741   | )       |   |              | (657,328 | )       |         |   | (92,277    | )          |   |   | 298,382   |          
|Construction in progress |       |                                      | 138,002   |           |             |   | 580,309 |           |  |   |         |         |   |              | (454,002 | )       |         |   |           |            |   |   | 264,309   |          
|                         |       |                                      |           |           |             |   |         |           |  |   |          |         |   |              |          |         |         |  
|                         | Total |                                      | W         | 4,703,922 |             |   | W       | 1,416,622 |  |   | W        | (35,774 | ) |              | W        | (88,524 | )       |   | W          | (1,332,877 | ) |   | W         | 4,663,369 | 
|                         |       |                                      |           |           |             |   |         |           |  |   |          |         |   |              |          |         |         |  



|   |                  
|-- | -----------------
|8. | INTANGIBLE ASSETS



|                           |  |              |           |  |                 |   |            |               |  |   |                  |   |  |      |           |  |      |   |           |  |  |   |           | 
|-------------------------- |  | ------------ | --------- |  | --------------- | - | ---------- | ------------- |  | - | ---------------- | - |  | ---- | --------- |  | ---- | - | --------- |  |  | - | --------- | 
|                           |  | Acquisition  |           |  | Accumulated     |   |            | Accumulated   |  |   |                 
|                           |  | Cost at      |           |  | Amortization at |   |            | Impairment at |  |   | Carrying Amounts |  
|                           |  | December 31, |           |  | December 31,    |   |            | December 31,  |  |   |                  |  
|                           |  | 2005         |           |  | 2005            |   |            | 2005          |  |   | 2003             |   |  | 2004 |           |  | 2005 |  
|                           |  |              |           |  |                 |   |            |               |  |   |                  |   |  |      |           |  |      |  
|Goodwill                   |  | W            | 2,409,303 |  |                 | W | (540,301   | )             |  | W | (70              | ) |  | W    | 2,129,980 |  |      | W | 1,994,339 |  |  | W | 1,868,932 | 
|Frequency use rights       |  |              | 1,384,433 |  |                 |   | (200,141   | )             |  |   |                 |   |  |      | 1,251,278 |  |      |   | 1,163,319 |  |  |   | 1,184,292 | 
|Software development costs |  |              | 230,439   |  |                 |   | (163,947   | )             |  |   | (501             | ) |  |      | 137,810   |  |      |   | 105,955   |  |  |   | 65,991    | 
|Other                      |  |              | 623,545   |  |                 |   | (288,445   | )             |  |   | (1,426           | ) |  |      | 155,876   |  |      |   | 259,290   |  |  |   | 333,674   | 
|                           |  |              |           |  |                 |   |            |               |  |   |                  |   |  |      |           |  |      |  
|                           |  | W            | 4,647,720 |  |                 | W | (1,192,834 | )             |  | W | (1,997           | ) |  | W    | 3,674,944 |  |      | W | 3,522,903 |  |  | W | 3,452,889 | 
|                           |  |              |           |  |                 |   |            |               |  |   |                  |   |  |      |           |  |      |  

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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 |          
|                           |  |                                      |          
|                           |  | 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 | 
|                           |  |                                      |           |  |             |   |        |          |  |   |          |   |  |              |         |  |            |   |          |         | 

|                           |  |                                      |           |  |             |   |         |          |  |   |          |   |  |              |        |  |            |   |          |         |  |   |      |   |  |   |           | 
|-------------------------- |  | ------------------------------------ | --------- |  | ----------- | - | ------- | -------- |  | - | -------- | - |  | ------------ | ------ |  | ---------- | - | -------- | ------- |  | - | ---- | - |  | - | --------- | 
|                           |  | For the Year Ended December 31, 2005 |          
|                           |  |                                      |          
|                           |  | Beginning                            |           |  |             |   | Ending  |         
|                           |  | Balance                              |           |  | Acquisition |   |         | Disposal |  |   | Transfer |   |  | Amortization |        |  | Impairment |   |          | Balance | 
|                           |  |                                      |           |  |             |   |         |          |  |   |          |   |  |              |        |  |            |   |          |         | 
|Goodwill                   |  | W                                    | 1,994,339 |  |             | W |        |          |  | W |         |   |  | W            | 9,223  |  |            | W | (134,630 | )       |  | W |     |   |  | W | 1,868,932 | 
|Frequency use rights       |  |                                      | 1,163,319 |  |             |   | 117,380 |          |  |   |         |   |  |              |       |  |            |   | (96,407  | )       |  |   |     |   |  |   | 1,184,292 | 
|Software development costs |  |                                      | 105,955   |  |             |   | 1,472   |          |  |   |         |   |  |              |       |  |            |   | (41,436  | )       |  |   |     |   |  |   | 65,991    | 
|Other                      |  |                                      | 259,290   |  |             |   | 80,642  |          |  |   | (342     | ) |  |              | 64,522 |  |            |   | (70,178  | )       |  |   | (260 | ) |  |   | 333,674   | 
|                           |  |                                      |           |  |             |   |         |          |  |   |          |   |  |              |        |  |            |   |          |         | 
|                           |  | W                                    | 3,522,903 |  |             | W | 199,494 |          |  | W | (342     | ) |  | W            | 73,745 |  |            | W | (342,651 | )       |  | W | (260 | ) |  | W | 3,452,889 | 
|                           |  |                                      |           |  |             |   |         |          |  |   |          |   |  |              |        |  |            |   |          |         | 



|                           |  |        |           |             |  |                                                            |  |  |                        |  
|-------------------------- |  | ------ | --------- | ----------- |  | ---------------------------------------------------------- |  |  | ---------------------- | -
|                           |  | Amount |           | Description |  | Residual Useful Lives                                     
|                           |  |        |           |             |  |                                                           
|Goodwill                   |  | W      | 1,820,884 |             |  | Goodwill related to acquisition of Shinsegi Telecomm, Inc. |  |  | 14 years and 3  months |  
|IMT license                |  |        | 1,059,871 |             |  | Frequency use rights relating to WCDMA Service             |  |  | (note a                | )
|WiBro license              |  |        | 117,000   |             |  | WiBro Service                                              |  |  | (note b                | )
|DMB license                |  |        | 7,421     |             |  | DMB Service                                                |  |  | 10 years and 6  months |  
|Software development costs |  |        | 65,991    |             |  | Software for business use                                  |  |  | 1-5 years              |  






|         |                                                                                                                                                                                                                                                                                                               
|-------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(note a) | Amortization of the IMT license commenced when the Company
    started its commercial IMT 2000 service in December 2003, using
    the straight-line method over the estimated useful life
    (13 years) of the IMT license which expires in December
    2016.                                              
|        
|(note b) | The Company purchased the WiBro license from MIC on
    March 20, 2005. The license period is seven years from that
    date. Amortization of the WiBro license will be on a straight
    line basis over the remaining useful life from the commencement
    date of the Companys commercial WiBro services.

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##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


9.     BONDS PAYABLE




|                                                  |              |          |      |      |                 |  |              |      |         |   |            |         |         |      |           |         |         |   |           |         |         | 
|------------------------------------------------- | ------------ | -------- | ---- | ---- | --------------- |  | ------------ | ---- | ------- | - | ---------- | ------- | ------- | ---- | --------- | ------- | ------- | - | --------- | ------- | ------- | 
|                                                  |              | Maturity |      |      | Annual Interest |  |              |      |         |   |            |        
|                                                  |              | Year     |      |      | Rate (%)        |  |              | 2003 |         |   | 2004       |         |         | 2005 |          
|                                                  |              |          |      |      |                 |  |              |      |         |   |            |         |         |      |          
|Domestic general bonds                            |              |          | 2004 |      |                 |  | 5.0-7.0      |      |         | W | 1,120,000  |         |         | W    |          |         |         | W |          |        
|                                                  |              |         |      |      | 2005            |  |              |      | 6.0     |   |            |         | 500,000 |      |           |         | 500,000 |   |           |         |        | 
|                                                  |              |         |      |      | 2006            |  |              |      | 5.0-6.0 |   |            |         | 800,000 |      |           |         | 800,000 |   |           |         | 800,000 | 
|                                                  |              |         |      |      | 2007            |  |              |      | 5.0-6.0 |   |            |         | 700,000 |      |           |         | 700,000 |   |           |         | 700,000 | 
|                                                  |              |         |      |      | 2008            |  |              |      | 5.0     |   |            |         | 300,000 |      |           |         | 300,000 |   |           |         | 300,000 | 
|                                                  |              |         |      |      | 2009            |  |              |      | 5.0     |   |            |         |        |      |           |         | 300,000 |   |           |         | 300,000 | 
|                                                  |              |         |      |      | 2010            |  |              |      | 4.0     |   |            |         |        |      |           |         |        |   |           |         | 200,000 | 
|                                                  |              |         |      |      | 2011            |  |              |      | 3.0     |   |            |         |        |      |           |         | 200,000 |   |           |         | 200,000 | 
|Dollar denominated bonds                          |              |          |      |      |                 |  |              |      |         |   |            |         |         |      |           |         |         |   |           |        
|                                                  | (US$200,078) |          |      | 2004 |                 |  |              | 7.75 |         |   |            | 239,653 |         |      |           |        |         |   |           |        |        
|                                                  | (US$300,000) |          |      | 2011 |                 |  |              | 4.25 |         |   |            |        |         |      |           | 313,140 |         |   |           | 303,900 |        
|Convertible bonds (US$329,450)                    |              |          | 2009 |      |                 |  |             |      |         |   |           |         |         |      | 385,885   |         |         |   | 385,885   |        
|Bonds with stock purchase
    warrants (US$4,000) |              |          | 2006 |      |                 |  | 6M Libor-0.3 |      |         |   | 4,791      |         |         |      |          |         |         |   |          |        
|                                                  |              |          |      |      |                 |  |              |      |         |   |            |         |         |      |          
|                                                  |              |          |      |      |                 |  |              |      |         |   | 3,664,444  |         |         |      | 3,499,025 |         |         |   | 3,189,785 |        
|Less discounts on bonds                           |              |          |      |      |                 |  |              |      |         |   | (47,553    | )       |         |      | (51,467   | )       |         |   | (40,016   | )      
|Less conversion right adjustments                 |              |          |      |      |                 |  |              |      |         |   |           |         |         |      | (82,245   | )       |         |   | (65,218   | )      
|Add long-term accrued interest                    |              |          |      |      |                 |  |              |      |         |   | 491        |         |         |      | 24,808    |         |         |   | 24,808    |        
|                                                  |              |          |      |      |                 |  |              |      |         |   |            |         |         |      |          
|Net                                               |              |          |      |      |                 |  |              |      |         |   | 3,617,382  |         |         |      | 3,390,121 |         |         |   | 3,109,359 |        
|Less portion due within one year                  |              |          |      |      |                 |  |              |      |         |   | (1,355,514 | )       |         |      | (498,278  | )       |         |   | (795,151  | )      
|                                                  |              |          |      |      |                 |  |              |      |         |   |            |         |         |      |          
|Long-term portion                                 |              |          |      |      |                 |  |              |      |         | W | 2,261,868  |         |         | W    | 2,891,843 |         |         | W | 2,314,208 |        
|                                                  |              |          |      |      |                 |  |              |      |         |   |            |         |         |      |          



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##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




10.     LONG-TERM BORROWINGS




|                                 |  |          |      |  |                      |  |                     |      |  |   |          |   |  |      |      |  |  |   |         |  
|-------------------------------- |  | -------- | ---- |  | -------------------- |  | ------------------- | ---- |  | - | -------- | - |  | ---- | ---- |  |  | - | ------- | -
|                                 |  | Final    |      |  |                      |  |                     |      |  |   |         
|                                 |  | Maturity |      |  | Annual Interest Rate |  |                     |      |  |   |          |  
|Lender                           |  | Year     |      |  | (%)                  |  |                     | 2003 |  |   | 2004     |   |  | 2005 |     
|                                 |  |          |      |  |                      |  |                     |      |  |   |          |   |  |      |     
|Korea Development Bank           |  |          | 2004 |  |                      |  | 3M Libor + 3.45     |      |  |   | US$4,478 |   |  |      | US$ |  |  |   | US$    |  
|Woori Bank                       |  |          | 2005 |  |                      |  | Floating rate + 0.2 |      |  |   | 4,089    |   |  |      |     |  |  |   |        |  
|Fine Bank                        |  |          | 2008 |  |                      |  | 3.50~3.90           |      |  |   | ¥       |   |  |      | ¥   |  |  |   | ¥14,802 |  
|Fine Bank                        |  |          | 2009 |  |                      |  | 3.11                |      |  |   |         |   |  |      |     |  |  |   | 12,800  |  
|                                 |  |          |      |  |                      |  |                     |      |  |   |          |   |  |      |     
|Total in foreign currency        |  |          |      |  |                      |  |                     |      |  |   | US$8,567 |   |  |      | US$ |  |  |   | US$    |  
|                                 |  |          |      |  |                      |  |                     |      |  |   | ¥       |   |  |      | ¥   |  |  |   | ¥27,602 |  
|                                 |  |          |      |  |                      |  |                     |      |  |   |          |   |  |      |     
|Equivalent in Korean won         |  |          |      |  |                      |  |                     |      |  | W | 10,262   |   |  | W    |     |  |  | W | 237     |  
|Less portion due within one year |  |          |      |  |                      |  |                     |      |  |   | (8,629   | ) |  |      |     |  |  |   | (82     | )
|                                 |  |          |      |  |                      |  |                     |      |  |   |          |   |  |      |     
|Long-term portion                |  |          |      |  |                      |  |                     |      |  | W | 1,633    |   |  | W    |     |  |  | W | 155     |  
|                                 |  |          |      |  |                      |  |                     |      |  |   |          |   |  |      |     



|    |                      
|--- | ---------------------
|11. | SUBSCRIPTION DEPOSITS





|             |  |             |         |      |  |      |        |      |  |   |        |  |  |   |        | 
|------------ |  | ----------- | ------- | ---- |  | ---- | ------ | ---- |  | - | ------ |  |  | - | ------ | 
|             |  | Deposit per |         |      |  |      |        |     
|Service type |  | Subscriber  |         | 2003 |  | 2004 |        | 2005
|             |  |             |         |      |  |      |        |     
|Cellular     |  | W           | 200,000 |      |  | W    | 44,197 |      |  | W | 31,440 |  |  | W | 23,770 | 



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##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|    |       
|--- | ------
|12. | LEASES

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|                                 |  |              |        |  |          |   |       |           |  |   |         |  
|-------------------------------- |  | ------------ | ------ |  | -------- | - | ----- | --------- |  | - | ------- | -
|                                 |  | Annual Lease |        |  |          |   |      
|                                 |  | Payments     |        |  | Interest |   |       | Principal | 
|                                 |  |              |        |  |          |   |       |           | 
|2006                             |  | W            | 15,328 |  |          | W | 989   |           |  | W | 14,339  |  
|2007                             |  |              | 8,846  |  |          |   | 352   |           |  |   | 8,494   |  
|2008                             |  |              | 1,734  |  |          |   | 24    |           |  |   | 1,710   |  
|                                 |  |              |        |  |          |   |       |           | 
|Total                            |  | W            | 25,908 |  |          | W | 1,365 |           |  |   | 24,543  |  
|                                 |  |              |        |  |          |   |       |           | 
|Less portion due within one year |  |              |        |  |          |   |       |           |  |   | (14,339 | )
|                                 |  |              |        |  |          |   |       |           | 
|Capital lease liabilities        |  |              |        |  |          |   |       |           |  | W | 10,204  |  
|                                 |  |              |        |  |          |   |       |           | 

W W




|    |                                                         
|--- | --------------------------------------------------------
|13. | ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES



|                                 |  |                    |           |  |                       |  |           |      |  |  |            |  |  |      |        |  |      |   |        |  |  |   |        | 
|-------------------------------- |  | ------------------ | --------- |  | --------------------- |  | --------- | ---- |  |  | ---------- |  |  | ---- | ------ |  | ---- | - | ------ |  |  | - | ------ | 
|                                 |  | Foreign Currencies |           |  | Korean Won Equivalent | 
|                                 |  |                    |           |  |                       | 
|                                 |  | 2003               |           |  | 2004                  |  |           | 2005 |  |  | 2003       |  |  | 2004 |        |  | 2005 |  
|                                 |  |                    |           |  |                       |  |           |      |  |  |            |  |  |      |        |  |      |  
|Cash and cash equivalents        |  |                    | US$24,407 |  |                       |  | US$4,875  |      |  |  | US$11,826  |  |  | W    | 29,234 |  |      | W | 5,088  |  |  | W | 11,980 | 
|                                 |  |                    | ¥8        |  |                       |  | ¥6        |      |  |  |           |  |  |      |       |  |      |   |       |  |  |   |       | 
|                                 |  |                    | EUR17     |  |                       |  |          |      |  |  | EUR3       |  |  |      | 26     |  |      |   |       |  |  |   | 3      | 
|                                 |  |                    | GBP5      |  |                       |  |          |      |  |  |           |  |  |      | 10     |  |      |   |       |  |  |   |       | 
|                                 |  |                    |          |  |                       |  |          |      |  |  | VND902,819 |  |  |      |       |  |      |   |       |  |  |   | 58     | 
|                                 |  |                    |          |  |                       |  |          |      |  |  | SG$30      |  |  |      |       |  |      |   |       |  |  |   | 18     | 
|Short-term financial instruments |  |                    | US$31,492 |  |                       |  |          |      |  |  |           |  |  |      | 37,721 |  |      |   |       |  |  |   |       | 
|Accounts receivable  trade      |  |                    | US$8,627  |  |                       |  | US$19,284 |      |  |  | US$31,334  |  |  |      | 10,333 |  |      |   | 20,129 |  |  |   | 31,741 | 
|                                 |  |                    | SG$743    |  |                       |  |          |      |  |  |           |  |  |      | 522    |  |      |   |       |  |  |   |       | 
|                                 |  |                    |          |  |                       |  |          |      |  |  | EUR248     |  |  |      |       |  |      |   |       |  |  |   | 298    | 

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##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


|                                                          |  |                    |            |  |                       |  |           |      |  |  |               |  |  |      |         |  |      |   |        |  |  |   |        | 
|--------------------------------------------------------- |  | ------------------ | ---------- |  | --------------------- |  | --------- | ---- |  |  | ------------- |  |  | ---- | ------- |  | ---- | - | ------ |  |  | - | ------ | 
|                                                          |  | Foreign Currencies |            |  | Korean Won Equivalent | 
|                                                          |  |                    |            |  |                       | 
|                                                          |  | 2003               |            |  | 2004                  |  |           | 2005 |  |  | 2003          |  |  | 2004 |         |  | 2005 |  
|                                                          |  |                    |            |  |                       |  |           |      |  |  |               |  |  |      |         |  |      |  
|Accounts receivable  other                               |  |                    | US$12,844  |  |                       |  | US$2,989  |      |  |  | US$3,364      |  |  |      | 15,385  |  |      |   | 3,120  |  |  |   | 3,408  | 
|                                                          |  |                    |           |  |                       |  |          |      |  |  | VND6,173,479  |  |  |      |        |  |      |   |       |  |  |   | 394    | 
|Guarantee deposits                                        |  |                    | US$193     |  |                       |  | US$142    |      |  |  |              |  |  |      | 232     |  |      |   | 149    |  |  |   |       | 
|                                                          |  |                    | ¥16,337    |  |                       |  | ¥15,756   |      |  |  | ¥16,156       |  |  |      | 183     |  |      |   | 159    |  |  |   | 139    | 
|                                                          |  |                    |            |  |                       |  |           |      |  |  |               |  |  |      |         |  |      |  
|Total assets                                              |  |                    |            |  |                       |  |           |      |  |  |               |  |  | W    | 93,646  |  |      | W | 28,645 |  |  | W | 48,039 | 
|                                                          |  |                    |            |  |                       |  |           |      |  |  |               |  |  |      |         |  |      |  
|Accounts payable  trade                                  |  |                    | S$15,432   |  |                       |  | US$17,406 |      |  |  | US$28,360     |  |  | W    | 18,485  |  |      | W | 18,169 |  |  | W | 28,728 | 
|                                                          |  |                    | ¥555,277   |  |                       |  | ¥26,240   |      |  |  |              |  |  |      | 6,217   |  |      |   | 266    |  |  |   |       | 
|Short-term borrowings                                     |  |                    | US$26,853  |  |                       |  | US$19,392 |      |  |  |              |  |  |      | 32,164  |  |      |   | 20,241 |  |  |   |       | 
|                                                          |  |                    | ¥2,255,431 |  |                       |  | ¥438,499  |      |  |  |              |  |  |      | 25,252  |  |      |   | 4,438  |  |  |   |       | 
|                                                          |  |                    | EUR 7      |  |                       |  | EUR 207   |      |  |  |              |  |  |      | 10      |  |      |   | 294    |  |  |   |       | 
|                                                          |  |                    |           |  |                       |  | GBP260    |      |  |  |              |  |  |      |        |  |      |   | 522    |  |  |   |       | 
|Accounts payable  other                                  |  |                    | US$35,759  |  |                       |  | US$13,539 |      |  |  | US$15,737     |  |  |      | 42,832  |  |      |   | 14,132 |  |  |   | 15,942 | 
|                                                          |  |                    | ¥20,606    |  |                       |  | ¥60,678   |      |  |  | ¥8,498        |  |  |      | 231     |  |      |   | 614    |  |  |   | 73     | 
|                                                          |  |                    | HK$267     |  |                       |  | HK$217    |      |  |  | HK$254        |  |  |      | 41      |  |      |   | 29     |  |  |   | 33     | 
|                                                          |  |                    | CNY140     |  |                       |  | CNY1      |      |  |  |              |  |  |      | 20      |  |      |   |       |  |  |   |       | 
|                                                          |  |                    | GBP304     |  |                       |  | GBP 118   |      |  |  | GBP453        |  |  |      | 648     |  |      |   | 237    |  |  |   | 791    | 
|                                                          |  |                    | SG$5       |  |                       |  | SG$5      |      |  |  | SG$22         |  |  |      | 3       |  |      |   | 3      |  |  |   | 13     | 
|                                                          |  |                    | EUR10      |  |                       |  | EUR348    |      |  |  | EUR504        |  |  |      | 15      |  |      |   | 495    |  |  |   | 604    | 
|                                                          |  |                    | AU$1       |  |                       |  |          |      |  |  |              |  |  |      | 1       |  |      |   |       |  |  |   |       | 
|                                                          |  |                    | CHF4       |  |                       |  |          |      |  |  | CHF19         |  |  |      | 4       |  |      |   |       |  |  |   | 15     | 
|                                                          |  |                    |           |  |                       |  |          |      |  |  | CAD2          |  |  |      |        |  |      |   |       |  |  |   | 2      | 
|                                                          |  |                    |           |  |                       |  |          |      |  |  | VND11,823,640 |  |  |      |        |  |      |   |       |  |  |   | 755    | 
|Accrued expenses                                          |  |                    | US$71      |  |                       |  | US$84     |      |  |  |              |  |  |      | 86      |  |      |   | 88     |  |  |   |       | 
|                                                          |  |                    | ¥1,300     |  |                       |  |          |      |  |  |              |  |  |      | 15      |  |      |   |       |  |  |   |       | 
|                                                          |  |                    | EUR 23     |  |                       |  |          |      |  |  |              |  |  |      | 1       |  |      |   |       |  |  |   |       | 
|Obligation under capital leases including current portion |  |                    | US$101     |  |                       |  |          |      |  |  |              |  |  |      | 121     |  |      |   |       |  |  |   |       | 
|                                                          |  |                    |            |  |                       |  |           |      |  |  |               |  |  |      |         |  |      |  
|Total liabilities                                         |  |                    |            |  |                       |  |           |      |  |  |               |  |  | W    | 126,146 |  |      | W | 59,528 |  |  | W | 46,956 | 
|                                                          |  |                    |            |  |                       |  |           |      |  |  |               |  |  |      |         |  |      |  



|    |                                  
|--- | ---------------------------------
|14. | CAPITAL STOCK AND CAPITAL SURPLUS

W


|                                          |  |      |             |      |  |      |             |  |  |  |             | 
|----------------------------------------- |  | ---- | ----------- | ---- |  | ---- | ----------- |  |  |  | ----------- | 
|                                          |  | 2003 |             | 2004 |  | 2005
|                                          |  |      |             |      |  |     
|Authorized shares                         |  |      | 220,000,000 |      |  |      | 220,000,000 |  |  |  | 220,000,000 | 
|Issued shares                             |  |      | 82,276,711  |      |  |      | 82,276,711  |  |  |  | 82,276,711  | 
|Outstanding shares, net of treasury stock |  |      | 73,614,308  |      |  |      | 73,614,296  |  |  |  | 73,614,296  | 



F-42



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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, 2003   |                                                                                       |               | 89,152,670 |            |              | W | 44,576  |         |  | W | 2,884,382 |        
|                     | Excess unallocated purchase price (note a)                                            |               |            |           |              |   |         |        |  |   |           | (230    | )
|                     | Retirement of treasury stock (note b)                                                 |               |            | (7,002,235 | )            |   |         |        |  |   |           |        |  
|                     | Issuance of common stock for the merger with SK IMT Co., Ltd.
    (note c)            |               |            | 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 d)                                          |               |            |           |              |   |         |        |  |   |           | 67,279  |  
|                     | Equity in capital surplus changes of affiliates                                       |               |            |           |              |   |         |        |  |   |           | (10,457 | )
|                     |                                                                                       |               |            |            |              |   |         |         | 
|At December 31, 2004 |                                                                                       |               | 82,276,711 |            |              |   | 44,639  |         |  |   | 2,968,301 |        
|                     | Deferred tax effect of temporary difference related to
    conversion rights (note e) |               |            |           |              |   |         |        |  |   |           | (18,502 | )
|                     | Transfer of stock option from capital adjustment (note f)                             |               |            |           |              |   |         |        |  |   |           | 1,533   |  
|                     | Equity in capital surplus changes of affiliates                                       |               |            |           |              |   |         |        |  |   |           | 3,508   |  
|                     |                                                                                       |               |            |            |              |   |         |         | 
|At December 31, 2005 |                                                                                       |               | 82,276,711 |            |              | W | 44,639  |         |  | W | 2,954,840 |        
|                     |                                                                                       |               |            |            |              |   |         |         | 






|         |                                                                                                                                                                                                                                                                                                                                                                                      
|-------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(note a) | 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 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 c) | 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 d) | 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)).
|        
|(note e) | The tax effect of temporary difference related to consideration
    for conversion rights was deducted directly from related
    components of stockholders equity, pursuant to adoption of
    SKAS No. 16 for the year ended December 31, 2005 (see
    Note 2(x)).                                                                                                               
|        
|(note f) | During the year ended December 31, 2005, the exercisable
    period for the stock options representing 17,800 shares, of
    which recognized compensation costs was
    W1,533 million, expired and the related
    stock options of W1,533 million in capital
    adjustments were transferred to capital surplus in accordance
    with Korean GAAP.                              

F-43



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##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|    |                  
|--- | -----------------
|15. | RETAINED EARNINGS



|               |  |      |           |  |      |   |           |      |  |   |           | 
|-------------- |  | ---- | --------- |  | ---- | - | --------- | ---- |  | - | --------- | 
|               |  | 2003 |           |  | 2004 |   |           | 2005 | 
|               |  |      |           |  |      |   |           |      | 
|Appropriated   |  | W    | 4,743,822 |  |      | W | 4,733,936 |      |  | W | 5,470,701 | 
|Unappropriated |  |      | 396,089   |  |      |   | 1,418,962 |      |  |   | 1,796,948 | 
|               |  |      |           |  |      |   |           |      | 
|               |  | W    | 5,139,911 |  |      | W | 6,152,898 |      |  | W | 7,267,649 | 
|               |  |      |           |  |      |   |           |      | 



|                                               |  |      |           |  |      |   |           |      |  |   |           | 
|---------------------------------------------- |  | ---- | --------- |  | ---- | - | --------- | ---- |  | - | --------- | 
|                                               |  | 2003 |           |  | 2004 |   |           | 2005 | 
|                                               |  |      |           |  |      |   |           |      | 
|Legal reserve                                  |  | W    | 22,288    |  |      | W | 22,320    |      |  | W | 22,320    | 
|Reserve for improvement of financial structure |  |      | 33,000    |  |      |   | 33,000    |      |  |   | 33,000    | 
|Reserve for loss on disposal of treasury stock |  |      | 221,197   |  |      |   | 477,182   |      |  |   | 477,182   | 
|Reserve for research and manpower development  |  |      | 559,198   |  |      |   | 776,296   |      |  |   | 822,061   | 
|Reserve for business expansion                 |  |      | 3,908,139 |  |      |   | 3,425,138 |      |  |   | 4,116,138 | 
|                                               |  |      |           |  |      |   |           |      | 
|                                               |  | W    | 4,743,822 |  |      | W | 4,733,936 |      |  | W | 5,470,701 | 
|                                               |  |      |           |  |      |   |           |      | 



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





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





|   |                                                                                          
|-- | -----------------------------------------------------------------------------------------
|c. | Reserves for Loss on Disposal of Treasury Stock and Research
    and Manpower Development





|   |                               
|-- | ------------------------------
|d. | Reserve for Business Expansion



F-44



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##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|    |               
|--- | --------------
|16. | TREASURY STOCK

W W


W


W


W W


W W W


W




|    |              
|--- | -------------
|17. | STOCK OPTIONS

W W W W


W


F-45



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##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                        |  |              |       |            |                   |   |       |              |  |   |                                    |  |  |            |     |  |      |   |   |      |  |   |       |  |  |   |       |  |  |   |       | 
|----------------------- |  | ------------ | ----- | ---------- | ----------------- | - | ----- | ------------ |  | - | ---------------------------------- |  |  | ---------- | --- |  | ---- | - | - | ---- |  | - | ----- |  |  | - | ----- |  |  | - | ----- | 
|                        |  |              |       | Recognized |                   |   |       |              | 
|                        |  | Total        |       |            | Compensation Cost |   |       | Compensation |  |   | Stock Option in Capital Adjustment | 
|                        |  | Compensation |       |            |                   |   |       | Cost to be   |  |   |                                    | 
|Grant Date              |  | Cost         |       |            | 2003              |   |       | 2004         |  |   | 2005                               |  |  | Recognized |     |  | 2003 |   |   | 2004 |  |   | 2005  | 
|                        |  |              |       |            |                   |   |       |              |  |   |                                    |  |  |            |     |  |      |   |   |      |  |   |       | 
|March 17, 2000 (note a) |  | W            | 1,533 |            |                   | W | 128   |              |  | W |                                   |  |  | W          |    |  |      | W |  |      |  | W | 1,533 |  |  | W | 1,533 |  |  | W |      | 
|March 16, 2001          |  |              | 234   |            |                   |   | 79    |              |  |   | 10                                 |  |  |            |    |  |      |   |  |      |  |   | 224   |  |  |   | 234   |  |  |   | 234   | 
|March 8, 2002           |  |              | 3,246 |            |                   |   | 1,082 |              |  |   | 1,082                              |  |  |            | 180 |  |      |   |  |      |  |   | 1,984 |  |  |   | 3,066 |  |  |   | 3,246 | 
|                        |  |              |       |            |                   |   |       |              |  |   |                                    |  |  |            |     |  |      |   |   |      |  |   |       | 
|                        |  | W            | 5,013 |            |                   | W | 1,289 |              |  | W | 1,092                              |  |  | W          | 180 |  |      | W |  |      |  | W | 3,741 |  |  | W | 4,833 |  |  | W | 3,480 | 
|                        |  |              |       |            |                   |   |       |              |  |   |                                    |  |  |            |     |  |      |   |   |      |  |   |       | 






|         |                                                                                                                                                                                                                                                                                                                                
|-------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(note a) | During the year ended December 31, 2005, the exercisable
    period for stock options representing 17,800 shares, for
    which the Company had recognized compensation cost of
    W1,533 million, expired and the related
    stock options of W1,533 million in capital
    adjustments were transferred to capital surplus.



|                                                      |  |      |           |      |  |      |           |  |  |   |           | 
|----------------------------------------------------- |  | ---- | --------- | ---- |  | ---- | --------- |  |  | - | --------- | 
|                                                      |  | 2003 |           | 2004 |  | 2005
|                                                      |  |      |           |      |  |     
|Pro forma ordinary income (in millions of Korean won) |  | W    | 2,751,221 |      |  | W    | 2,121,238 |  |  | W | 2,561,268 | 
|Pro forma ordinary income per common shares           |  |      | 26,145    |      |  |      | 20,234    |  |  |   | 25,439    | 
|Pro forma net income (in millions of Korean won)      |  |      | 1,962,986 |      |  |      | 1,489,542 |  |  |   | 1,872,680 | 
|Pro forma net income per common shares                |  |      | 26,145    |      |  |      | 20,234    |  |  |   | 25,439    | 



|    |             
|--- | ------------
|18. | INCOME TAXES



|                                        |  |      |         |  |      |   |         |      |  |   |         | 
|--------------------------------------- |  | ---- | ------- |  | ---- | - | ------- | ---- |  | - | ------- | 
|                                        |  | 2003 |         |  | 2004 |   |         | 2005 | 
|                                        |  |      |         |  |      |   |         |      | 
|Currently                               |  | W    | 668,180 |  |      | W | 551,405 |      |  | W | 685,541 | 
|Changes in net deferred tax liabilities |  |      | 120,879 |  |      |   | 78,356  |      |  |   | 7,718   | 
|                                        |  |      |         |  |      |   |         |      | 
|Income tax expenses                     |  | W    | 789,059 |  |      | W | 629,761 |      |  | W | 693,259 | 
|                                        |  |      |         |  |      |   |         |      | 

F-46



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##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                                                                      |  |      |         |   |      |   |         |      |  |   |          |  
|------------------------------------------------------------------------------------- |  | ---- | ------- | - | ---- | - | ------- | ---- |  | - | -------- | -
|                                                                                      |  | 2003 |         |   | 2004 |   |         | 2005 | 
|                                                                                      |  |      |         |   |      |   |         |      | 
|Income taxes at statutory income tax rate of 27% in 2003 and
    2004 and 25% in 2005 |  | W    | 743,671 |   |      | W | 573,257 |      |  | W | 640,391  |  
|Resident surtax payable                                                               |  |      | 74,367  |   |      |   | 57,326  |      |  |   | 64,039   |  
|Tax credit for investments, technology and human resource
    development and others  |  |      | (83,826 | ) |      |   | (89,080 | )    |  |   | (100,160 | )
|Special surtax for agriculture and fishery industries and other                       |  |      | 13,685  |   |      |   | 13,736  |      |  |   | 18,838   |  
|Goodwill amortization not deductible for tax purpose                                  |  |      | 38,213  |   |      |   | 35,382  |      |  |   | 35,382   |  
|Undistributed earnings (unrecognized deficit) of subsidiaries                         |  |      | (5,909  | ) |      |   | 11,011  |      |  |   | 4,846    |  
|Effect of the change in income tax rate (note a)                                      |  |      | (20,204 | ) |      |   |        |      |  |   |         |  
|Other permanent differences                                                           |  |      | 15,327  |   |      |   | 28,581  |      |  |   | 12,973   |  
|Increase (decrease) in valuation allowance                                            |  |      | 13,735  |   |      |   | (452    | )    |  |   | 16,950   |  
|                                                                                      |  |      |         |   |      |   |         |      | 
|Recorded income taxes                                                                 |  | W    | 789,059 |   |      | W | 629,761 |      |  | W | 693,259  |  
|                                                                                      |  |      |         |   |      |   |         |      | 
|Effective tax rate                                                                    |  |      | 28.65   | % |      |   | 29.66   | %    |  |   | 27.06    | %
|                                                                                      |  |      |         |   |      |   |         |      | 






|         |                                                                                                                                                                                                                                                                                                                                                                              
|-------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(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-47



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##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                                              |                                  |      |          |         |      |   |          |         |   |   |          |         |  
|------------------------------------------------------------- | -------------------------------- | ---- | -------- | ------- | ---- | - | -------- | ------- | - | - | -------- | ------- | -
|                                                              |                                  | 2003 |          |         | 2004 |   |          | 2005    |  
|                                                              |                                  |      |          |         |      |   |          |         |  
|Current (note a):                                             |                                  |      |          |         |      |   |          |         |   |   |          |        
|Allowance for doubtful accounts                               |                                  | W    |         |         |      | W |         |         |   | W | 39,334   |        
|Write-off of doubtful accounts                                |                                  |      |         |         |      |   |         |         |   |   | 9,239    |        
|Accrued interest income                                       |                                  |      |         |         |      |   |         |         |   |   | (1,229   | )      
|Net operating loss carryforwards                              |                                  |      |         |         |      |   |         |         |   |   | 17       |        
|Tax credit carryforwards                                      |                                  |      |         |         |      |   |         |         |   |   | 89       |        
|Other                                                         |                                  |      |         |         |      |   |         |         |   |   | 18,623   |        
|                                                              |                                  |      |          |         |      |   |          |         |  
|Net deferred tax assets  current                             |                                  |      |         |         |      |   |         |         |   |   | 66,073   |        
|                                                              |                                  |      |          |         |      |   |          |         |  
|Non-Current (note a):                                         |                                  |      |          |         |      |   |          |         |   |   |          |        
|Allowance for doubtful accounts                               |                                  |      | 22,039   |         |      |   | 19,649   |         |   |   |         |        
|Write-off doubtful accounts                                   |                                  |      | 9,587    |         |      |   | 9,764    |         |   |   |         |        
|Accrued interest income                                       |                                  |      | (2,026   | )       |      |   | (2,463   | )       |   |   |         |        
|Trading securities                                            |                                  |      | 1        |         |      |   | (561     | )       |   |   |         |        
|Depreciation                                                  |                                  |      | 3,712    |         |      |   | (40,220  | )       |   |   | (47,472  | )      
|Loss on impairment of investment securities                   |                                  |      | 30,757   |         |      |   | 32,851   |         |   |   | 32,959   |        
|Loss on disposition of properties                             |                                  |      |         |         |      |   | 11,480   |         |   |   |         |        
|Foreign currency translation loss                             |                                  |      | 774      |         |      |   |         |         |   |   |         |        
|Equity in losses of affiliates                                |                                  |      | (6,593   | )       |      |   | (12,671  | )       |   |   | (10,244  | )      
|Unrecognized deficit (undistributed earnings) of subsidiaries |                                  |      | (3,364   | )       |      |   | (9,434   | )       |   |   | 13,732   |        
|Tax free reserve for research and manpower development        |                                  |      | (182,518 | )       |      |   | (195,103 | )       |   |   | (211,208 | )      
|Tax free reserve for loss on disposal of treasury stock       |                                  |      | (130,373 | )       |      |   | (130,372 | )       |   |   | (130,372 | )      
|Loss on valuation of foreign currency swap                    |                                  |      |         |         |      |   |         |         |   |   | 3,642    |        
|Loss on valuation of derivatives (capital adjustment)         |                                  |      |         |         |      |   |         |         |   |   | 5,377    |        
|Considerations for conversion right                           |                                  |      |         |         |      |   |         |         |   |   | (18,502  | )      
|Equity in Capital Adjustments of Affiliates                   |                                  |      |         |         |      |   |         |         |   |   | (21,967  | )      
|Net operating loss carryforwards                              |                                  |      | 29,575   |         |      |   | 25,371   |         |   |   | 24,108   |        
|Tax credit carryforwards                                      |                                  |      | 1,162    |         |      |   | 5,003    |         |   |   |         |        
|Other                                                         |                                  |      | 39,693   |         |      |   | 18,510   |         |   |   | 15,091   |        
|                                                              |                                  |      |          |         |      |   |          |         |  
|Total deferred tax liabilities                                |                                  |      | (187,574 | )       |      |   | (268,196 | )       |   |   | (344,856 | )      
|Valuation allowance for:                                      |                                  |      |          |         |      |   |          |         |   |   |          |        
|                                                              | Depreciation                     |      |          |        |      |   |          | (5,321  | ) |   |          | (6,022  | )
|                                                              | Net operating loss carryforwards |      |          | (29,575 | )    |   |          | (24,980 | ) |   |          | (23,523 | )
|                                                              | Other                            |      |          | (8,880  | )    |   |          | (7,555  | ) |   |          | (25,260 | )
|                                                              |                                  |      |          |         |      |   |          |         |  
|Net deferred tax assets liabilities  non-current             |                                  | W    | (226,029 | )       |      | W | (306,052 | )       |   | W | (399,661 | )      
|                                                              |                                  |      |          |         |      |   |          |         |  






|         |                                                                                                                                                                                                                                                                                                                            
|-------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(note a) | Effective January 1, 2005, deferred income tax assets and
    liabilities which were presented on the balance sheet as a
    single non-current net number through 2004, are separated into
    current and non-current portions, pursuant to adoption of SKAS
    No. 16 Income Taxes. Such newly adopted
    accounting

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##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




| |                                                                                                                                                                                                                                                                                  
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | standards are prospectively applied as allowed by SKAS
    No. 16. As a result, the deferred income tax liabilities at
    December 31, 2003 and 2004 were not separated into current
    and non-current portions to reflect the effect of such new
    adoption of SKAS No. 16.



|                         |  |                    |        |  |               |   |    | 
|------------------------ |  | ------------------ | ------ |  | ------------- | - | -- | 
|                         |  | Net Operating Loss |        |  | Tax Credit    |  
|Year Ending December 31, |  | Carryforwards      |        |  | Carryforwards |  
|                         |  |                    |        |  |               |  
|2006                     |  | W                  | 62     |  |               | W | 89 | 
|2007                     |  |                    | 2,302  |  |               |   |   | 
|2008                     |  |                    | 14,520 |  |               |   |   | 
|2009                     |  |                    | 52,892 |  |               |   |   | 
|2010                     |  |                    | 19,542 |  |               |   |   | 
|                         |  |                    |        |  |               |  
|Total                    |  | W                  | 89,318 |  |               | W | 89 | 
|                         |  |                    |        |  |               |  



|                                                                |       |   |         |         |  
|--------------------------------------------------------------- | ----- | - | ------- | ------- | -
|Considerations for conversion right                             |       | W | (18,502 | )      
|Unrealized loss on valuation of long-term investment securities |       |   | 15,966  |        
|Equity in capital adjustment of affiliates, net                 |       |   | (24,119 | )      
|Loss on valuation of currency swap                              |       |   | 5,377   |        
|Foreign-based operations translation adjustment                |       |   | 2       |        
|                                                                |       |   |        
|                                                                | Total |   | W       | (21,276 | )
|                                                                |       |   |        



|    |                 
|--- | ----------------
|19. | INCOME PER SHARE



Net income and ordinary income per share


|                                                     |  |      |            |  |      |   |            |      |  |   |            | 
|---------------------------------------------------- |  | ---- | ---------- |  | ---- | - | ---------- | ---- |  | - | ---------- | 
|                                                     |  | 2003 |            |  | 2004 |   |            | 2005 | 
|                                                     |  |      |            |  |      |   |            |      | 
|Net income                                           |  | W    | 1,966,100  |  |      | W | 1,491,479  |      |  | W | 1,872,978  | 
|Weighted average number of common shares outstanding |  |      | 75,078,219 |  |      |   | 73,614,297 |      |  |   | 73,614,296 | 
|                                                     |  |      |            |  |      |   |            |      | 
|Net income per share                                 |  | W    | 26,187     |  |      | W | 20,261     |      |  | W | 25,443     | 
|                                                     |  |      |            |  |      |   |            |      | 

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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 |  
|          |                                  |      |          |           |  |            |           |  |          |           | 
|For 2005: |                                  |      |          |           |  |            |           |  |          |           |  |  |  |           
|          | At January 1, 2005               |      |         |           |  | 82,276,711 |           |  |          | 365/365   |  |  |  | 82,276,711 |  
|          | Treasury stock, at the beginning |      |         |           |  | (8,662,415 | )         |  |          | 365/365   |  |  |  | (8,662,415 | )
|          |                                  |      |          |           |  |            |           |  |          |           | 
|          | Total                            |      |          |           |  | 73,614,296 |           |  |          |           |  |  |  | 73,614,296 |  
|          |                                  |      |          |           |  |            |           |  |          |           | 






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



Diluted net income and ordinary income per share


|                                                              |  |      |            |  |      |   |            |      |  |   |            | 
|------------------------------------------------------------- |  | ---- | ---------- |  | ---- | - | ---------- | ---- |  | - | ---------- | 
|                                                              |  | 2003 |            |  | 2004 |   |            | 2005 | 
|                                                              |  |      |            |  |      |   |            |      | 
|Adjusted net income                                           |  | W    | 1,966,100  |  |      | W | 1,498,797  |      |  | W | 1,886,033  | 
|Adjusted weighted average number of common shares outstanding |  |      | 75,078,219 |  |      |   | 74,596,777 |      |  |   | 75,332,996 | 
|                                                              |  |      |            |  |      |   |            |      | 
|Diluted net income per share                                  |  | W    | 26,187     |  |      | W | 20,092     |      |  | W | 25,036     | 
|                                                              |  |      |            |  |      |   |            |      | 

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##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




Diluted net income and ordinary income per share


|         |                                      |                 |   |                  |                  |  |                 |            |  |  |   |        | 
|-------- | ------------------------------------ | --------------- | - | ---------------- | ---------------- |  | --------------- | ---------- |  |  | - | ------ | 
|         |                                      |                 |   | Average Weighted |                  |  | Per-share       |           
|         |                                      | Net Income      |   |                  | Number of Shares |  |                 | Amount     | 
|         |                                      |                 |   |                  |                  |  |                 |            | 
|         |                                      | (In millions of |   |                  |                  |  | (In Korean Won) |           
|         |                                      | Korean Won)     |   |                  |                  |  |                
|For 2003 |                                      |                 |   |                  |                  |  |                 |            |  |  |   |       
|         | Basic net income per share           |                 | W | 1,966,100        |                  |  |                 | 75,078,219 |  |  | W | 26,187 | 
|         | Effect of stock option (note a)      |                 |   |                 |                  |  |                 |           |  |  |   |        | 
|         |                                      |                 |   |                  |                  |  |                 |            | 
|         | Diluted net income per share         |                 | W | 1,966,100        |                  |  |                 | 75,078,219 |  |  | W | 26,187 | 
|         |                                      |                 |   |                  |                  |  |                 |            | 
|For 2004 |                                      |                 |   |                  |                  |  |                 |            |  |  |   |       
|         | Basic net income per share           |                 | W | 1,491,479        |                  |  |                 | 73,614,297 |  |  | W | 20,261 | 
|         |                                      |                 |   |                  |                  |  |                 |            | 
|         | Effect of stock option (note a)      |                 |   |                 |                  |  |                 |           |  |  |   |        | 
|         | Effect of convertible bonds (note b) |                 |   | 7,318            |                  |  |                 | 982,480    |  |  |   |        | 
|         |                                      |                 |   |                  |                  |  |                 |            | 
|         | Diluted net income per share         |                 | W | 1,498,797        |                  |  |                 | 74,596,777 |  |  | W | 20,092 | 
|         |                                      |                 |   |                  |                  |  |                 |            | 
|For 2005 |                                      |                 |   |                  |                  |  |                 |            |  |  |   |       
|         | Basic net income per share           |                 | W | 1,872,978        |                  |  |                 | 73,614,296 |  |  | W | 25,443 | 
|         |                                      |                 |   |                  |                  |  |                 |            | 
|         | Effect of stock option (note a)      |                 |   |                 |                  |  |                 |           |  |  |   |        | 
|         | Effect of convertible bonds (note b) |                 |   | 13,055           |                  |  |                 | 1,718,700  |  |  |   |        | 
|         |                                      |                 |   |                  |                  |  |                 |            | 
|         | Diluted net income per share         |                 | W | 1,886,033        |                  |  |                 | 75,332,996 |  |  | W | 25,036 | 
|         |                                      |                 |   |                  |                  |  |                 |            | 






|         |                                                                                                                                                                                                                                                                                                                                                          
|-------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(note a) | In the years ended December 31, 2003, 2004 and 2005, the
    assumed exercise of stock options was not reflected in diluted
    earnings per share because the exercise of stock options would
    not dilute the earnings per share.                                                                                                                    
|        
|(note b) | The effect of convertible bonds are increase in net income
    related to interest expense that would not have incurred, and
    increase in the weighted average number of common shares
    outstanding related to common shares that would have been
    issued, assuming the conversion of convertible bonds issued on
    May 27, 2004 (see Note 9).

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##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


20.     DIVIDEND DISCLOSURE




|       |  |                           |  |                    |            |  |       |   |     |          |  |  |           |  |  |   |         | 
|------ |  | ------------------------- |  | ------------------ | ---------- |  | ----- | - | --- | -------- |  |  | --------- |  |  | - | ------- | 
|Fiscal |  |                           |  | Number of          |            |  | Face  |   |     | Dividend |  |  |          
|Year   |  | Dividend Type             |  | Shares Outstanding |            |  | Value |   |     | Ratio    |  |  | Dividends | 
|       |  |                           |  |                    |            |  |       |   |     |          |  |  |           | 
|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 | 
|       |  |                           |  |                    |            |  |       |   |     |          |  |  |           | 
|2005   |  | Cash dividends (interim)  |  |                    | 73,614,296 |  |       | W | 500 |          |  |  | 200%      |  |  | W | 73,614  | 
|       |  | Cash dividends (year-end) |  |                    | 73,614,296 |  |       | W | 500 |          |  |  | 1,600%    |  |  | W | 588,915 | 
|       |  |                           |  |                    |            |  |       |   |     |          |  |  |           | 
|       |  | Total                     |  |                    |            |  |       |   |     |          |  |  |           |  |  | W | 662,529 | 
|       |  |                           |  |                    |            |  |       |   |     |          |  |  |           | 



|                       |  |      |           |   |      |   |           |      |  |   |           |  
|---------------------- |  | ---- | --------- | - | ---- | - | --------- | ---- |  | - | --------- | -
|                       |  | 2003 |           |   | 2004 |   |           | 2005 | 
|                       |  |      |           |   |      |   |           |      | 
|Dividends              |  | W    | 404,878   |   |      | W | 758,227   |      |  | W | 662,529   |  
|Net income             |  |      | 1,966,100 |   |      |   | 1,491,479 |      |  |   | 1,872,978 |  
|                       |  |      |           |   |      |   |           |      | 
|Dividends payout ratio |  |      | 20.59     | % |      |   | 50.84     | %    |  |   | 35.37     | %
|                       |  |      |           |   |      |   |           |      | 



|                            |  |      |         |   |      |   |         |      |  |   |         |  
|--------------------------- |  | ---- | ------- | - | ---- | - | ------- | ---- |  | - | ------- | -
|                            |  | 2003 |         |   | 2004 |   |         | 2005 | 
|                            |  |      |         |   |      |   |         |      | 
|Dividend per share          |  | W    | 5,500   |   |      | W | 10,300  |      |  | W | 9,000   |  
|Stock price at the year-end |  |      | 199,000 |   |      |   | 197,000 |      |  |   | 181,000 |  
|                            |  |      |         |   |      |   |         |      | 
|Dividends yield ratio       |  |      | 2.76    | % |      |   | 5.23    | %    |  |   | 4.97    | %
|                            |  |      |         |   |      |   |         |      | 

21.     RESTRICTED DEPOSITS


W W


W


22.     COMMITMENTS AND
CONTINGENCIES


W W


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##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


W


W


W W


e-mail e-mail e-mail e-mail


W






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##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




23.     INSURANCE




|                             |  |      |                                  |  |            |   |           |          |  |   |           | 
|---------------------------- |  | ---- | -------------------------------- |  | ---------- | - | --------- | -------- |  | - | --------- | 
|Asset                        |  | Risk |                                  |  | Book Value |   |           | Coverage | 
|                             |  |      |                                  |  |            |   |           |          | 
|Inventories and property and |  |      |                                  |  |            |   |           |          |  |   | US$68,000 | 
|equipment                    |  |      | Fire and comprehensive liability |  |            | W | 3,754,241 |          |  | W | 7,395,950 | 
|                             |  |      |                                  |  |            |   |           |          | 

24.     TRANSACTIONS WITH AFFILIATED
COMPANIES




|                                           |                                                 |      |  |         |  |      |  |           |  |  |  |         | 
|------------------------------------------ | ----------------------------------------------- | ---- |  | ------- |  | ---- |  | --------- |  |  |  | ------- | 
|Description                                |                                                 | 2003 |  | 2004    |  | 2005
|                                           |                                                 |      |  |         |  |     
|Transactions                               |                                                 |      |  |         |  |      |  |           |  |  |  |        
|SK Engineering & Construction Co., Ltd.:   |                                                 |      |  |         |  |      |  |           |  |  |  |        
|                                           | Construction (note a)                           |      |  | 324,260 |  |      |  | 419,871   |  |  |  | 257,823 | 
|                                           | Commissions paid and other expense              |      |  | 7,662   |  |      |  | 6,148     |  |  |  | 6,593   | 
|                                           | Commission income and other income              |      |  | 776     |  |      |  | 1,348     |  |  |  | 2,580   | 
|SK Networks (formerly known as SK Global): |                                                 |      |  |         |  |      |  |           |  |  |  |        
|                                           | Purchases of property and equipment             |      |  | 3,853   |  |      |  | 3,144     |  |  |  | 7,220   | 
|                                           | Purchases of inventory                          |      |  |        |  |      |  |          |  |  |  | 2,800   | 
|                                           | Commissions paid, leased line and other expense |      |  | 214,101 |  |      |  | 411,053   |  |  |  | 432,967 | 
|                                           | Sales of handsets and other income              |      |  | 491,978 |  |      |  | 1,177,249 |  |  |  | 279,197 | 
|SK Corporation:                            |                                                 |      |  |         |  |      |  |           |  |  |  |        
|                                           | Purchases of property and equipment             |      |  | 3,831   |  |      |  | 4,071     |  |  |  | 1,302   | 
|                                           | Commissions paid and other expense              |      |  | 35,612  |  |      |  | 55,921    |  |  |  | 48,266  | 
|                                           | Commission income and other income              |      |  | 5,370   |  |      |  | 8,826     |  |  |  | 9,243   | 
|SK Telesys:                                |                                                 |      |  |         |  |      |  |           |  |  |  |        
|                                           | Purchases of property and equipment             |      |  | 188,111 |  |      |  | 188,822   |  |  |  | 294,829 | 
|                                           | Commissions paid and other expenses             |      |  | 1,717   |  |      |  | 3,102     |  |  |  | 7,410   | 
|                                           | Commission income and other income              |      |  | 385     |  |      |  | 879       |  |  |  | 575     | 
|SKC:                                       |                                                 |      |  |         |  |      |  |           |  |  |  |        
|                                           | Purchases of inventories                        |      |  | 204,694 |  |      |  | 899,260   |  |  |  | 219,767 | 
|                                           | Disposal of inventories and other               |      |  | 18      |  |      |  |          |  |  |  |        | 
|                                           | Commissions paid and other expenses             |      |  | 3,120   |  |      |  | 2,192     |  |  |  | 13,316  | 
|                                           | Commission income and other income              |      |  | 747     |  |      |  | 584       |  |  |  | 32      | 
|Innoace:                                   |                                                 |      |  |         |  |      |  |           |  |  |  |        
|                                           | Purchases of property and equipment             |      |  | 35,225  |  |      |  | 23,776    |  |  |  | 13,652  | 
|                                           | Commissions paid and other expenses             |      |  | 314     |  |      |  | 4,337     |  |  |  | 2,109   | 
|                                           | Commission income and other income              |      |  | 8,969   |  |      |  | 296       |  |  |  | 218     | 

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##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


|                                           |                                              |      |  |         |  |      |  |         |  |  |  |         | 
|------------------------------------------ | -------------------------------------------- | ---- |  | ------- |  | ---- |  | ------- |  |  |  | ------- | 
|Description                                |                                              | 2003 |  | 2004    |  | 2005
|                                           |                                              |      |  |         |  |     
|WiderThan Co., Ltd.:                       |                                              |      |  |         |  |      |  |         |  |  |  |        
|                                           | Purchases of property and equipment          |      |  | 22,643  |  |      |  | 3,780   |  |  |  | 13,248  | 
|                                           | Commissions paid and other expenses          |      |  | 49,939  |  |      |  | 82,380  |  |  |  | 98,211  | 
|                                           | Commission income and other income           |      |  | 665     |  |      |  | 2,216   |  |  |  | 2,277   | 
|SK C&C Co., Ltd.:                          |                                              |      |  |         |  |      |  |         |  |  |  |        
|                                           | Purchases of property and equipment          |      |  | 182,774 |  |      |  | 130,243 |  |  |  | 249,633 | 
|                                           | Commissions paid and other expenses (note b) |      |  | 284,319 |  |      |  | 295,562 |  |  |  | 322,856 | 
|                                           | Commission income and other income           |      |  | 8,200   |  |      |  | 7,918   |  |  |  | 7,853   | 
|Balances                                   |                                              |      |  |         |  |      |  |         |  |  |  |        
|SK Engineering & Construction Co., Ltd.:   |                                              |      |  |         |  |      |  |         |  |  |  |        
|                                           | Accounts receivable                          |      |  | 92      |  |      |  | 76      |  |  |  | 97      | 
|                                           | Accounts payable                             |      |  | 63,442  |  |      |  | 135,213 |  |  |  | 21,326  | 
|                                           | Guarantee deposits received                  |      |  | 90      |  |      |  | 408     |  |  |  | 942     | 
|SK Networks (formerly known as SK Global): |                                              |      |  |         |  |      |  |         |  |  |  |        
|                                           | Accounts receivable                          |      |  | 107,782 |  |      |  | 216,412 |  |  |  | 1,787   | 
|                                           | Guarantee deposits                           |      |  | 113     |  |      |  | 113     |  |  |  | 113     | 
|                                           | Accounts payable                             |      |  | 63,641  |  |      |  | 20,047  |  |  |  | 22,237  | 
|                                           | Guarantee deposits received                  |      |  | 719     |  |      |  | 955     |  |  |  | 2,700   | 
|SK Corporation:                            |                                              |      |  |         |  |      |  |         |  |  |  |        
|                                           | Accounts receivable                          |      |  | 1,571   |  |      |  | 4,843   |  |  |  | 1,643   | 
|                                           | Guarantee deposits (note c)                  |      |  | 103,720 |  |      |  | 103,720 |  |  |  | 37,703  | 
|                                           | Accounts payable                             |      |  | 2,911   |  |      |  | 20,165  |  |  |  | 6,914   | 
|                                           | Guarantee deposits received                  |      |  | 10,194  |  |      |  | 10,194  |  |  |  | 6,174   | 
|SK Telesys:                                |                                              |      |  |         |  |      |  |         |  |  |  |        
|                                           | Accounts receivable                          |      |  | 50      |  |      |  | 53      |  |  |  | 3       | 
|                                           | Accounts payable                             |      |  | 33,904  |  |      |  | 51,954  |  |  |  | 65,819  | 
|SKC:                                       |                                              |      |  |         |  |      |  |         |  |  |  |        
|                                           | Accounts receivable                          |      |  | 53,680  |  |      |  | 15,549  |  |  |  |        | 
|                                           | Guarantee deposits                           |      |  |        |  |      |  | 10,266  |  |  |  |        | 
|                                           | Accounts payable                             |      |  | 93,383  |  |      |  | 115,839 |  |  |  |        | 
|Innoace:                                   |                                              |      |  |         |  |      |  |         |  |  |  |        
|                                           | Accounts payable                             |      |  | 25,640  |  |      |  | 15,199  |  |  |  | 6,100   | 
|                                           | Guarantee deposits received                  |      |  | 1,069   |  |      |  | 2,138   |  |  |  | 2,138   | 
|Widerthan Co., Ltd.:                       |                                              |      |  |         |  |      |  |         |  |  |  |        
|                                           | Accounts receivable                          |      |  | 30      |  |      |  | 102     |  |  |  | 61      | 
|                                           | Accounts payable                             |      |  | 9,762   |  |      |  | 9,847   |  |  |  | 17,398  | 
|SK C&C Co., Ltd.:                          |                                              |      |  |         |  |      |  |         |  |  |  |        
|                                           | Accounts receivable                          |      |  | 245     |  |      |  | 480     |  |  |  | 91      | 
|                                           | Accounts payable                             |      |  | 72,715  |  |      |  | 77,871  |  |  |  | 174,884 | 
|                                           | Guarantee deposits received                  |      |  | 346     |  |      |  | 346     |  |  |  | 346     | 

F-55



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##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)







|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|-------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(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. When such lease
    agreement was terminated in February 2005, the Company collected
    all leasehold key money of
    W103,720 million. Under another lease
    agreement with SK Corporation, the Company deposited refundable
    leasehold key money of W768 million in
    2005. And SK Communications Co., Ltd., a subsidiary of the
    Company, has entered into an agreement with SK Corporation Co.,
    Ltd. for the lease of its head office with the lease period from
    January 13, 2005 to January 31, 2007 and deposited
    refundable leasehold key money of
    W36,935 million. As a result, the
    refundable leasehold key money to SK Corporation as of
    December 31, 2005 totaled
    W37,703 million.

25.     PROVISION FOR MILEAGE
POINTS


W W W




|                                |  |      |         |   |      |   |         |      |  |   |        |  
|------------------------------- |  | ---- | ------- | - | ---- | - | ------- | ---- |  | - | ------ | -
|                                |  | 2003 |         |   | 2004 |   |         | 2005 | 
|                                |  |      |         |   |      |   |         |      | 
|Beginning balance               |  | W    | 86,139  |   |      | W | 103,679 |      |  | W | 61,596 |  
|Present value discount (note a) |  |      |        |   |      |   |        |      |  |   | (7,415 | )
|Increase                        |  |      | 32,145  |   |      |   | 34,283  |      |  |   | 7,265  |  
|Decrease                        |  |      | (14,605 | ) |      |   | (76,366 | )    |  |   | (9,274 | )
|                                |  |      |         |   |      |   |         |      | 
|Ending Balance                  |  | W    | 103,679 |   |      | W | 61,596  |      |  | W | 52,172 |  
|                                |  |      |         |   |      |   |         |      | 






|         |                                                                                                                                                                                                         
|-------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(note a) | Effective January 1, 2005, pursuant to adoption of SKAS
    No. 17 (see Note 2(m)), Rainbow Points provision is
    recorded at the present value, which was recorded at nominal
    value through 2004.

F-56



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##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


26.     DERIVATIVE INSTRUMENTS


fixed-to W W W


fixed-to fixed-to W W W




|                                 |  |                                        |  |             |         |             |          |                               |            |   |        |            |  |   |        |  |  |   |        | 
|-------------------------------- |  | -------------------------------------- |  | ----------- | ------- | ----------- | -------- | ----------------------------- | ---------- | - | ------ | ---------- |  | - | ------ |  |  | - | ------ | 
|                                 |  |                                        |  |             |         |             |          | Fair Value                    |           
|                                 |  |                                        |  |             |         |             |          |                               |           
|                                 |  |                                        |  |             |         |             |          | Designated                    |            |   |       
|                                 |  |                                        |  |             |         | Duration of |          | as Cash                       |            |   | Not    |            |  |  
|Type                             |  | Hedged Item                            |  | Face Amount |         |             | Contract |                               | Flow Hedge |   |        | Designated |  |   | Total  | 
|                                 |  |                                        |  |             |         |             |          |                               |            |   |        |            |  |   |        | 
|Fix-to-fixed cross currency swap |  | US dollar denominated bonds            |  | US$         | 300,000 |             |          | March 23, 2004- April 1, 2011 |            | W | 60,206 |            |  | W |       |  |  | W | 60,206 | 
|Fix-to-fixed cross currency swap |  | US dollar denominated convertible bond |  | US$         | 100,000 |             |          | May 27, 2004- May 27, 2009    |            |   |       |            |  |   | 13,244 |  |  |   | 13,244 | 
|                                 |  |                                        |  |             |         |             |          |                               |            |   |        |            |  |   |        | 
|                                 |  |                                        |  |             |         |             |          |                               |            | W | 60,206 |            |  | W | 13,244 |  |  | W | 73,450 | 
|                                 |  |                                        |  |             |         |             |          |                               |            |   |        |            |  |   |        | 

W




|    |                         
|--- | ------------------------
|27. | MERGERS AND ACQUISITIONS



|   |                             
|-- | ----------------------------
|a. | Merger with SK IMT Co., Ltd.

W W W W


F-57



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SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


W W




|   |                              
|-- | -----------------------------
|b. | Merger with Cyworld Co., Ltd.

W W


W


|                                |                                           |  |   |       |  |   |       |       | 
|------------------------------- | ----------------------------------------- |  | - | ----- |  | - | ----- | ----- | 
|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.

W W W




|                           |                                            |              |   |        |               |  |   |        |  
|-------------------------- | ------------------------------------------ | ------------ | - | ------ | ------------- |  | - | ------ | -
|                           |                                            | 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  |  
|                           |                                            |              |   |        |               | 

F-58



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##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


|                                     |                    |                 |   |        |               |  |   |        |  
|------------------------------------ | ------------------ | --------------- | - | ------ | ------------- |  | - | ------ | -
|                                     |                    | 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 | )
|                                     |                    |                 |   |        |               | 



|   |                                   
|-- | ----------------------------------
|c. | Acquisition of Seoul Records, Inc.





|                                  |  |                |        | 
|--------------------------------- |  | -------------- | ------ | 
|                                  |  | In Millions of |       
|                                  |  | Korean Won     |       
|                                  |  |                |       
|Fair value of net assets acquired |  | W              | 23,796 | 
|Goodwill                          |  |                | 4,078  | 
|                                  |  |                |       
|Acquisition cost                  |  | W              | 27,874 | 
|                                  |  |                |       

W




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



W W W W W W




|    |                                                                          
|--- | -------------------------------------------------------------------------
|29. | SUBSTANTIAL CHANGES IN THE BUSINESS ENVIRONMENT AND
    SUBSEQUENT EVENTS



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



F-59



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##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


W




|   |                                                                      
|-- | ---------------------------------------------------------------------
|b. | Establishment of HELIO, LLC., a Joint Venture Company in the
    U.S.







|   |                                                
|-- | -----------------------------------------------
|c. | Acquisition of and Merger with Etoos Group Inc.







|   |                                               
|-- | ----------------------------------------------
|d. | Additional Acquisition of SLD Telecom PTE Ltd.





|   |                                                  
|-- | -------------------------------------------------
|e. | Handset Subsidies to Long-term Mobile Subscribers





|   |                                                                                              
|-- | ---------------------------------------------------------------------------------------------
|f. | Request for the conversion of the convertible bond and the
    delivery of the treasury stock

W W


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SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |                                                   
|-- | --------------------------------------------------
|g. | Resolution to acquire equity interest in IHQ, Inc.

W




|   |                                                
|-- | -----------------------------------------------
|h. | Fine for improper payment of handset subsidies.

W W




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





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



W W




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





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



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##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




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

held-to






| |   |                                                                                                                                                                                                                                                                                                        
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | 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.

W W W W W W W W W




|                      |                   |                  |   |         |            |  |       |            |  |  |            |        |   |  |   |         | 
|--------------------- | ----------------- | ---------------- | - | ------- | ---------- |  | ----- | ---------- |  |  | ---------- | ------ | - |  | - | ------- | 
|                      |                   |                  |   | Gross   |            |  | Gross |            |  | 
|                      |                   | Cost             |   |         | Unrealized |  |       | Unrealized |  |  |           
|                      |                   | (Amortized Cost) |   |         | Gains      |  |       | Losses     |  |  | Fair Value |       
|                      |                   |                  |   |         |            |  |       |            |  |  |            |       
|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 | 
|                      |                   |                  |   |         |            |  |       |            |  |  |            |       
|At December 31, 2005: |                   |                  |   |         |            |  |       |            |  |  |            |        |   |  |   |        
|                      | Equity securities |                  | W | 11      |            |  | W     | 1          |  |  | W          |       |   |  | W | 12      | 
|                      | Debt securities   |                  |   | 777,460 |            |  |       |           |  |  |            |       |   |  |   | 777,460 | 
|                      |                   |                  |   |         |            |  |       |            |  |  |            |       
|                      | Total             |                  | W | 777,471 |            |  | W     | 1          |  |  | W          |       |   |  | W | 777,472 | 
|                      |                   |                  |   |         |            |  |       |            |  |  |            |       

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SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                      |                   |                 |         |         |            |   |         |            |  |   |            |        |   |            |         |         |   |   |         |         | 
|--------------------- | ----------------- | --------------- | ------- | ------- | ---------- | - | ------- | ---------- |  | - | ---------- | ------ | - | ---------- | ------- | ------- | - | - | ------- | ------- | 
|                      |                   |                 |         | Gross   |            |   | Gross   |            |  |   |            |       
|                      |                   | Cost (amortized |         |         | unrealized |   |         | unrealized |  |   | Impairment |        |   |           
|                      |                   | cost)           |         |         | gains      |   |         | losses     |  |   | losses     |        |   | Fair value |        
|                      |                   |                 |         |         |            |   |         |            |  |   |            |        |   |            |        
|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       | 470,266 |            |   | W       | 137,621    |  |   | W          |       |   |            | W       | (63,902 | ) |   | W       | 543,985 | 
|                      | Debt securities   |                 |         | 65,957  |            |   |         |           |  |   |            |       |   |            |         | (10,655 | ) |   |         | 55,302  | 
|                      |                   |                 |         |         |            |   |         |            |  |   |            |        |   |            |        
|                      |                   | W               | 536,223 |         |            | W | 137,621 |            |  | W |           |        |   | W          | (74,557 | )       |   | W | 599,287 |        
|                      |                   |                 |         |         |            |   |         |            |  |   |            |        |   |            |        
|At December 31, 2005: |                   |                 |         |         |            |   |         |            |  |   |            |        |   |            |         |         |   |   |         |        
|                      | Equity securities |                 | W       | 465,244 |            |   | W       | 173,960    |  |   | W          | (9,768 | ) |            | W       | (60,838 | ) |   | W       | 568,598 | 
|                      | Debt securities   |                 |         | 307,490 |            |   |         |           |  |   |            | (217   | ) |            |         | (10,885 | ) |   |         | 296,388 | 
|                      |                   |                 |         |         |            |   |         |            |  |   |            |        |   |            |        
|                      |                   | W               | 772,734 |         |            | W | 173,960 |            |  | W | (9,985     | )      |   | W          | (71,723 | )       |   | W | 864,986 |        
|                      |                   |                 |         |         |            |   |         |            |  |   |            |        |   |            |        

W W


W W W




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

W W W


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##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


W W


held-to held-to




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





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











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



F-64



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SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


W W W




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

W W W




|   |                                                                               
|-- | ------------------------------------------------------------------------------
|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

majority-owned




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



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SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




W W W




|   |                                              
|-- | ---------------------------------------------
|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



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##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


W W




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





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





|   |                                        
|-- | ---------------------------------------
|t. | Sale of Stock by Equity Method Investee





|   |                     
|-- | --------------------
|u. | Subscription Payable

W


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##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |                                                                            
|-- | ---------------------------------------------------------------------------
|v. | Equity Instrument to Be Received in Conjunction with
    Providing Services

W




|   |                                            
|-- | -------------------------------------------
|w. | Consolidation of Variable Interest Entities







|   |                              
|-- | -----------------------------
|x. | Remeasurement of Stock Option





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





|   |                        
|-- | -----------------------
|z. | Consolidated Subsidiary

W


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##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                                     |                                                                                                |                         |            |         |      |   |            |         |   |   |            |         |  
|---------------------------------------------------- | ---------------------------------------------------------------------------------------------- | ----------------------- | ---------- | ------- | ---- | - | ---------- | ------- | - | - | ---------- | ------- | -
|                                                     |                                                                                                | Year Ended December 31, |           
|                                                     |                                                                                                |                         |           
|                                                     |                                                                                                | 2003                    |            |         | 2004 |   |            | 2005    |  
|                                                     |                                                                                                |                         |            |         |      |   |            |         |  
|Net income based on Korean GAAP                      |                                                                                                | W                       | 1,966,100  |         |      | W | 1,491,479  |         |   | W | 1,872,978  |        
|Adjustments:                                         |                                                                                                |                         |            |         |      |   |            |         |   |   |            |        
|                                                     | Deferred income tax adjustments due to difference in accounting
    principles                 |                         |            | (7,342  | )    |   |            | (3,827  | ) |   |            | 30,857  |  
|                                                     | Tax effect of the reconciling items                                                            |                         |            | (15,036 | )    |   |            | 22,515  |   |   |            | (4,717  | )
|                                                     | Deferred charges                                                                               |                         |            | 2,660   |      |   |            | (60     | ) |   |            | (2,037  | )
|                                                     | Capital leases                                                                                 |                         |            | (906    | )    |   |            | 1,534   |   |   |            | (925    | )
|                                                     | Intangible assets                                                                              |                         |            | (22,303 | )    |   |            | (18,546 | ) |   |            | (16,046 | )
|                                                     | Reversal of amortization of goodwill                                                           |                         |            | 135,557 |      |   |            | 136,694 |   |   |            | 137,389 |  
|                                                     | Capitalization of foreign exchange losses and interest expenses
    related to tangible assets |                         |            | 21,617  |      |   |            | 24,454  |   |   |            | 3,231   |  
|                                                     | Capitalization of interest expenses related to purchases of
    intangible assets              |                         |            | 427     |      |   |            | 5,285   |   |   |            | 5,272   |  
|                                                     | Nonrefundable activation fees                                                                  |                         |            | (46,962 | )    |   |            | (36,048 | ) |   |            | (34,681 | )
|                                                     | Loss (gain) on disposal of subsidiary shares                                                   |                         |            | 58      |      |   |            |        |   |   |            |        |  
|                                                     | Stock option compensation plan                                                                 |                         |            | (3,114  | )    |   |            | (1,938  | ) |   |            | 49      |  
|                                                     | Loss on sale of accounts receivable and other in asset
    securitization                      |                         |            | 7,437   |      |   |            | (14,476 | ) |   |            |        |  
|                                                     | Loss on impairment of investment securities                                                    |                         |            | 24,727  |      |   |            | (8,434  | ) |   |            | 3,065   |  
|                                                     | Loss on valuation of currency swap                                                             |                         |            |        |      |   |            | (49,452 | ) |   |            | 29,898  |  
|                                                     | Discount on leasehold deposits                                                                 |                         |            | (286    | )    |   |            | 422     |   |   |            | 230     |  
|                                                     | Considerations for conversion right                                                            |                         |            |        |      |   |            | 1,016   |   |   |            | 14,044  |  
|                                                     | Foreign currency translation                                                                   |                         |            |        |      |   |            | 2,458   |   |   |            | (2,458  | )
|                                                     | Recovery of impaired investment securities                                                     |                         |            | 115     |      |   |            |        |   |   |            |        |  
|                                                     | Sales of stock by the equity method investee                                                   |                         |            |        |      |   |            |        |   |   |            | (8,637  | )
|                                                     | Consolidation of variable interest entity                                                      |                         |            |        |      |   |            |        |   |   |            | 38      |  
|                                                     |                                                                                                |                         |            |         |      |   |            |         |  
|Net income based on U.S. GAAP                        |                                                                                                | W                       | 2,062,749  |         |      | W | 1,553,076  |         |   | W | 2,027,550  |        
|                                                     |                                                                                                |                         |            |         |      |   |            |         |  
|Weighted average number of common shares outstanding |                                                                                                |                         | 75,078,219 |         |      |   | 73,614,297 |         |   |   | 73,614,296 |        
|                                                     |                                                                                                |                         |            |         |      |   |            |         |  
|Earnings per share based on U.S. GAAP:               |                                                                                                |                         |            |         |      |   |            |         |   |   |            |        
|                                                     | Basic earnings per share                                                                       |                         | W          | 27,475  |      |   | W          | 21,097  |   |   | W          | 27,543  |  
|                                                     |                                                                                                |                         |            |         |      |   |            |         |  
|                                                     | Diluted earnings per share                                                                     |                         | W          | 27,475  |      |   | W          | 20,918  |   |   | W          | 27,089  |  
|                                                     |                                                                                                |                         |            |         |      |   |            |         |  

F-69



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##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


|                                                       |                                                                                                |              |           |           |      |   |           |           |   |   |           |          |  
|------------------------------------------------------ | ---------------------------------------------------------------------------------------------- | ------------ | --------- | --------- | ---- | - | --------- | --------- | - | - | --------- | -------- | -
|                                                       |                                                                                                | December 31, |          
|                                                       |                                                                                                |              |          
|                                                       |                                                                                                | 2003         |           |           | 2004 |   |           | 2005      |  
|                                                       |                                                                                                |              |           |           |      |   |           |           |  
|Shareholders equity based on Korean GAAP Adjustments: |                                                                                                | W            | 6,093,847 |           |      | W | 7,205,744 |           |   | W | 8,327,540 |         
|                                                       | Deferred income tax adjustments due to difference In accounting
    principles                 |              |           | (45,317   | )    |   |           | (70,067   | ) |   |           |         |  
|                                                       | Tax effect of the reconciling items                                                            |              |           | 136,517   |      |   |           | 159,032   |   |   |           | 101,130  |  
|                                                       | Deferred charges                                                                               |              |           | 60        |      |   |           |          |   |   |           | (2,037   | )
|                                                       | Capital leases                                                                                 |              |           | 239       |      |   |           | 1,773     |   |   |           | 847      |  
|                                                       | Intangible assets                                                                              |              |           | 1,019,951 |      |   |           | 1,009,591 |   |   |           | 993,547  |  
|                                                       | Reversal of amortization of goodwill                                                           |              |           | 273,598   |      |   |           | 410,292   |   |   |           | 547,681  |  
|                                                       | Capitalization of foreign exchange losses and interest expenses
    related to tangible assets |              |           | 19,842    |      |   |           | 44,294    |   |   |           | 47,522   |  
|                                                       | Capitalization of interest expenses related to purchase of
    intangible assets               |              |           | (68,945   | )    |   |           | (63,660   | ) |   |           | (58,388  | )
|                                                       | Nonrefundable activation fees                                                                  |              |           | (239,174  | )    |   |           | (275,222  | ) |   |           | (309,903 | )
|                                                       | Loans receivable for stock issued to employees investor
    association                       |              |           | (33,788   | )    |   |           | (22,546   | ) |   |           | (14,586  | )
|                                                       | Minority interest in equity of consolidated affiliates                                         |              |           | (155,985  | )    |   |           | (98,198   | ) |   |           | (108,927 | )
|                                                       | Loss on sale of accounts receivable and other in asset
    securitization                      |              |           | 14,476    |      |   |           |          |   |   |           |         |  
|                                                       | Discount on leasehold deposits                                                                 |              |           | (653      | )    |   |           | (231      | ) |   |           |         |  
|                                                       | Considerations for conversion right                                                            |              |           |          |      |   |           | (66,263   | ) |   |           | (52,220  | )
|                                                       | Foreign currency translation                                                                   |              |           |          |      |   |           | 2,458     |   |   |           |         |  
|                                                       | Consolidation of variable interest entity                                                      |              |           |          |      |   |           |          |   |   |           | 228      |  
|                                                       |                                                                                                |              |           |           |      |   |           |           |  
|Shareholders equity based on U.S. GAAP                |                                                                                                | W            | 7,014,668 |           |      | W | 8,236,997 |           |   | W | 9,472,434 |         
|                                                       |                                                                                                |              |           |           |      |   |           |           |  

F-70



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##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                               |                                                                                                 |                         |           |            |      |   |           |           |   |   |           |           |  
|------------------------------ | ----------------------------------------------------------------------------------------------- | ----------------------- | --------- | ---------- | ---- | - | --------- | --------- | - | - | --------- | --------- | -
|                               |                                                                                                 | Year Ended December 31, |          
|                               |                                                                                                 |                         |          
|                               |                                                                                                 | 2003                    |           |            | 2004 |   |           | 2005      |  
|                               |                                                                                                 |                         |           |            |      |   |           |           |  
|Balance, beginning of the year |                                                                                                 | W                       | 6,356,176 |            |      | W | 7,014,668 |           |   | W | 8,236,997 |          
|                               | Net income for the year                                                                         |                         |           | 2,062,749  |      |   |           | 1,553,076 |   |   |           | 2,027,550 |  
|                               | Dividends                                                                                       |                         |           | (151,739   | )    |   |           | (478,492  | ) |   |           | (758,227  | )
|                               | Issuance of common stock                                                                        |                         |           | 31,053     |      |   |           |          |   |   |           |          |  
|                               | Unrealized gains on valuation of securities, net of tax                                         |                         |           | 50,033     |      |   |           | 55,156    |   |   |           | 23,042    |  
|                               | Equity in capital surplus, retained earnings and capital
    adjustments of affiliates (note a) |                         |           | 50,166     |      |   |           | 89,448    |   |   |           | (63,370   | )
|                               | Retirement of treasury stock                                                                    |                         |           | (20,598    | )    |   |           |          |   |   |           |          |  
|                               | Treasury stock transactions                                                                     |                         |           | (1,379,337 | )    |   |           | (2        | ) |   |           |          |  
|                               | Foreign-based operations translation adjustments                                               |                         |           | (356       | )    |   |           | (11,128   | ) |   |           | (1,792    | )
|                               | Stock compensation plan                                                                         |                         |           | 4,403      |      |   |           | 3,030     |   |   |           | 274       |  
|                               | Decrease in loans receivable for stock issued to employees
    investor association            |                         |           | 12,118     |      |   |           | 11,241    |   |   |           | 7,960     |  
|                               |                                                                                                 |                         |           |            |      |   |           |           |  
|Balance, end of the year       |                                                                                                 | W                       | 7,014,668 |            |      | W | 8,236,997 |           |   | W | 9,472,434 |          
|                               |                                                                                                 |                         |           |            |      |   |           |           |  






|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|-------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(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,                                                                                    |           
|                                |                                       |                                                                                                 |           
|                                |                                       | 2003                                                                                            |            |            | 2004      |   |            | 2005       |          
|                                |                                       |                                                                                                 |            |            |           |   |            |            |          
|Current assets:                 |                                       |                                                                                                 |            |            |           |   |            |            |           |   |            |           
|                                | As reported                           |                                                                                                 | W          | 4,069,525  |           |   | W          | 4,390,693  |           |   | W          | 4,598,580  |        
|                                | U.S. GAAP adjustments:                |                                                                                                 |            |            |           |   |            |            |           |   |            |            |        
|                                |                                       |  loans receivable for stock issued to employees investor
    association                       |            |            |          |   |            |            | (4,123    | ) |            |            | (3,249  | )
|                                |                                       |  deferred tax adjustments due to difference in accounting
    principles                       |            |            | 73,500    |   |            |            | 51,344    |   |            |            |        |  
|                                |                                       |  tax effect of the reconciling items                                                           |            |            | (8,297    | ) |            |            | 25,234    |   |            |            | 31,381  |  
|                                |                                       |  discount on leasehold deposits                                                                |            |            | 5,777     |   |            |            | 1,119     |   |            |            |        |  
|                                |                                       |  asset securitization transactions                                                             |            |            | 478,298   |   |            |            |          |   |            |            |        |  
|                                |                                       |  consolidation of variable interest entity                                                     |            |            |          |   |            |            |          |   |            |            | (4,889  | )
|                                |                                       |                                                                                                 |            |            |           |   |            |            |          
|                                | Current assets based on U.S. GAAP     |                                                                                                 |            | 4,618,823  |           |   |            | 4,464,267  |           |   |            | 4,621,823  |        
|                                |                                       |                                                                                                 |            |            |           |   |            |            |          
|Non-current assets:             |                                       |                                                                                                 |            |            |           |   |            |            |           |   |            |           
|                                | As reported                           |                                                                                                 |            | 9,748,692  |           |   |            | 9,892,665  |           |   |            | 10,106,192 |        
|                                | U.S. GAAP adjustments:                |                                                                                                 |            |            |           |   |            |            |           |   |            |            |        
|                                |                                       |  loans receivable for stock issued to employees
    investor association                      |            |            | (33,788   | ) |            |            | (18,423   | ) |            |            | (11,337 | )
|                                |                                       |  intangible assets                                                                             |            |            | 1,015,801 |   |            |            | 1,004,774 |   |            |            | 988,729 |  
|                                |                                       |  reverse of amortization of goodwill                                                           |            |            | 273,598   |   |            |            | 410,292   |   |            |            | 547,681 |  
|                                |                                       |  discount on leasehold deposits                                                                |            |            | (6,430    | ) |            |            | (1,349    | ) |            |            |        |  
|                                |                                       |  recovery of impaired investment securities                                                    |            |            | 34        |   |            |            | 34        |   |            |            | 34      |  
|                                |                                       |  nonrefundable activation fees                                                                 |            |            | 9,129     |   |            |            | 9,129     |   |            |            | 8,571   |  
|                                |                                       |  capital lease                                                                                 |            |            | 3,301     |   |            |            | 1,773     |   |            |            | 847     |  
|                                |                                       |  capitalization of foreign exchange losses and interest
    expense related to tangible assets |            |            | 19,842    |   |            |            | 44,294    |   |            |            | 47,522  |  
|                                |                                       |  capitalization of interest expenses related to purchase
    of intangible assets              |            |            | (68,945   | ) |            |            | (63,660   | ) |            |            | (58,388 | )
|                                |                                       |  deferred charges                                                                              |            |            | 6,154     |   |            |            | 12,969    |   |            |            | 7,933   |  
|                                |                                       |  subscription payable                                                                          |            |            |          |   |            |            |          |   |            |            | 40,014  |  
|                                |                                       |  equity instrument to be received in conjunction with
    providing services                   |            |            |          |   |            |            |          |   |            |            | (2,055  | )
|                                |                                       |  consolidation of variable interest entity                                                     |            |            |          |   |            |            |          |   |            |            | 53,626  |  
|                                | Non-current assets based on U.S. GAAP |                                                                                                 |            | 10,967,388 |           |   |            | 11,292,498 |           |   |            | 11,729,369 |        
|                                |                                       |                                                                                                 |            |            |           |   |            |            |          
|Total assets based on U.S. GAAP |                                       | W                                                                                               | 15,586,211 |            |           | W | 15,756,765 |            |           | W | 16,351,192 |           
|                                |                                       |                                                                                                 |            |            |           |   |            |            |          

F-72



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##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


|                                            |                                          |                                                                               |           |           |          |   |           |           |          |   |           |           |         |  
|------------------------------------------- | ---------------------------------------- | ----------------------------------------------------------------------------- | --------- | --------- | -------- | - | --------- | --------- | -------- | - | --------- | --------- | ------- | -
|                                            |                                          | December, 31                                                                  |          
|                                            |                                          |                                                                               |          
|                                            |                                          | 2003                                                                          |           |           | 2004     |   |           | 2005      |         
|                                            |                                          |                                                                               |           |           |          |   |           |           |         
|Current liabilities:                        |                                          |                                                                               |           |           |          |   |           |           |          |   |           |          
|                                            | As reported                              |                                                                               | W         | 4,530,910 |          |   | W         | 3,066,893 |          |   | W         | 2,863,373 |        
|                                            | U.S. GAAP adjustments:                   |                                                                               |           |           |          |   |           |           |          |   |           |           |        
|                                            |                                          |  deferred charges                                                            |           |           | 31       |   |           |           |         |   |           |           |        |  
|                                            |                                          |  nonrefundable activation fees                                               |           |           | 68,665   |   |           |           | 86,082   |   |           |           | 114,111 |  
|                                            |                                          |  asset securitization transactions                                           |           |           | 463,822  |   |           |           |         |   |           |           |        |  
|                                            |                                          |  acquisition cost of equity interest in subsidiary                           |           |           | 886      |   |           |           |         |   |           |           |        |  
|                                            |                                          |  foreign currency translation                                                |           |           |         |   |           |           | (26      | ) |           |           |        |  
|                                            |                                          |  subscription payable                                                        |           |           |         |   |           |           |         |   |           |           | 40,014  |  
|                                            |                                          |  equity instrument to be received in conjunction with
    providing services |           |           |         |   |           |           |         |   |           |           | (525    | )
|                                            |                                          |  consolidation of variable interest entity                                   |           |           |         |   |           |           |         |   |           |           | 17,671  |  
|                                            |                                          |                                                                               |           |           |          |   |           |           |         
|                                            | Current liabilities based on U.S. GAAP   |                                                                               |           | 5,064,314 |          |   |           | 3,152,949 |          |   |           | 3,034,644 |        
|                                            |                                          |                                                                               |           |           |          |   |           |           |         
|Long-term liabilities:                      |                                          |                                                                               |           |           |          |   |           |           |          |   |           |          
|                                            | As reported                              |                                                                               |           | 3,193,460 |          |   |           | 4,010,721 |          |   |           | 3,513,859 |        
|                                            | U.S. GAAP adjustments:                   |                                                                               |           |           |          |   |           |           |          |   |           |           |        
|                                            |                                          |  deferred charges                                                            |           |           | 5,844    |   |           |           | 12,969   |   |           |           | 9,970   |  
|                                            |                                          |  nonrefundable activation fees                                               |           |           | 179,638  |   |           |           | 198,269  |   |           |           | 204,363 |  
|                                            |                                          |  capital leases                                                              |           |           | 3,062    |   |           |           |         |   |           |           |        |  
|                                            |                                          |  deferred tax adjustments due to difference in accounting
    principles     |           |           | 118,837  |   |           |           | 123,911  |   |           |           |        |  
|                                            |                                          |  tax effect of the reconciling items                                         |           |           | (149,597 | ) |           |           | (141,080 | ) |           |           | (74,532 | )
|                                            |                                          |  considerations for conversion right                                         |           |           |         |   |           |           | 66,263   |   |           |           | 52,220  |  
|                                            |                                          |  foreign currency translation                                                |           |           |         |   |           |           | (2,432   | ) |           |           |        |  
|                                            |                                          |  equity instrument to be received in conjunction with
    providing services |           |           |         |   |           |           |         |   |           |           | (1,530  | )
|                                            |                                          |  consolidation of variable interest entity                                   |           |           |         |   |           |           |         |   |           |           | 631     |  
|                                            |                                          |                                                                               |           |           |          |   |           |           |         
|                                            | Long-term liabilities based on U.S. GAAP |                                                                               |           | 3,351,244 |          |   |           | 4,268,621 |          |   |           | 3,704,981 |        
|                                            |                                          |                                                                               |           |           |          |   |           |           |         
|Total liabilities based on U.S. GAAP        |                                          | W                                                                             | 8,415,558 |           |          | W | 7,421,570 |           |          | W | 6,739,625 |          
|                                            |                                          |                                                                               |           |           |          |   |           |           |         
|Minority interests:                         |                                          |                                                                               |           |           |          |   |           |           |          |   |           |          
|                                            | As reported                              |                                                                               | W         | 155,985   |          |   | W         | 98,198    |          |   | W         | 108,927   |        
|                                            | U.S. GAAP adjustments:                   |                                                                               |           |           |          |   |           |           |          |   |           |           |        
|                                            |                                          |  consolidation of variable interest entity                                   |           |           |         |   |           |           |         |   |           |           | 30,206  |  
|                                            |                                          |                                                                               |           |           |          |   |           |           |         
|Total minority interests based on U.S. GAAP |                                          | W                                                                             | 155,985   |           |          | W | 98,198    |           |          | W | 139,133   |          
|                                            |                                          |                                                                               |           |           |          |   |           |           |         

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##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                                                  |                                           |      |            |          |      |   |            |          |   |   |            |          |  
|----------------------------------------------------------------- | ----------------------------------------- | ---- | ---------- | -------- | ---- | - | ---------- | -------- | - | - | ---------- | -------- | -
|                                                                  |                                           | 2003 |            |          | 2004 |   |            | 2005     |  
|                                                                  |                                           |      |            |          |      |   |            |          |  
|Cash flows from operating activities based on Korean GAAP         |                                           | W    | 3,329,391  |          |      | W | 2,516,807  |          |   | W | 3,404,105  |         
|Adjustments:                                                      |                                           |      |            |          |      |   |            |          |   |   |            |         
|                                                                  | Asset securitization transactions         |      |            | (47,496  | )    |   |            | 469,883  |   |   |            |         |  
|                                                                  | Trading security cash flows               |      |            | (137,618 | )    |   |            | 240,204  |   |   |            | (122,710 | )
|                                                                  | Consolidation of variable interest entity |      |            |         |      |   |            |         |   |   |            | 12,444   |  
|                                                                  |                                           |      |            |          |      |   |            |          |  
|Cash flows from operating activities based on US GAAP             |                                           | W    | 3,144,277  |          |      | W | 3,226,894  |          |   | W | 3,293,839  |         
|                                                                  |                                           |      |            |          |      |   |            |          |  
|Cash flows from investing activities based on Korean GAAP         |                                           | W    | (1,415,053 | )        |      | W | (1,470,292 | )        |   | W | (1,938,187 | )       
|Adjustments:                                                      |                                           |      |            |          |      |   |            |          |   |   |            |         
|                                                                  | Asset securitization transactions         |      |            | (8,080   | )    |   |            | 76,347   |   |   |            |         |  
|                                                                  | Trading security cash flows               |      |            | 137,618  |      |   |            | (240,204 | ) |   |            | 122,710  |  
|                                                                  | Consolidation of variable interest entity |      |            |         |      |   |            |         |   |   |            | (1,004   | )
|                                                                  |                                           |      |            |          |      |   |            |          |  
|Cash flows from investing activities based on US GAAP             |                                           | W    | (1,285,515 | )        |      | W | (1,634,149 | )        |   | W | (1,816,481 | )       
|                                                                  |                                           |      |            |          |      |   |            |          |  
|Cash flows from financing activities based on Korean GAAP         |                                           | W    | (2,261,039 | )        |      | W | (968,570   | )        |   | W | (1,429,038 | )       
|Adjustments:                                                      |                                           |      |            |          |      |   |            |          |   |   |            |         
|                                                                  | Asset securitization transactions         |      |            | 55,576   |      |   |            | (546,230 | ) |   |            |         |  
|                                                                  | Consolidation of variable interest entity |      |            |         |      |   |            |         |   |   |            | (10,243  | )
|                                                                  |                                           |      |            |          |      |   |            |          |  
|Cash flows from financing activities based on US GAAP             |                                           | W    | (2,205,463 | )        |      | W | (1,514,800 | )        |   | W | (1,439,281 | )       
|                                                                  |                                           |      |            |          |      |   |            |          |  
|Cash and cash equivalents at end of the year based on Korean GAAP |                                           | W    | 317,488    |          |      | W | 370,630    |          |   | W | 378,426    |         
|Adjustments:                                                      |                                           |      |            |          |      |   |            |          |   |   |            |         
|                                                                  | Consolidation of variable interest entity |      |            |         |      |   |            |         |   |   |            | 1,197    |  
|                                                                  |                                           |      |            |          |      |   |            |          |  
|Cash and cash equivalents at end of the year based on US GAAP     |                                           | W    | 317,488    |          |      | W | 370,630    |          |   | W | 379,623    |         
|                                                                  |                                           |      |            |          |      |   |            |          |  



F-74



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##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                                                                  |  |      |            |   |      |   |            |  
|--------------------------------------------------------------------------------- |  | ---- | ---------- | - | ---- | - | ---------- | -
|                                                                                  |  | 2003 |            |   | 2004 |  
|                                                                                  |  |      |            |   |      |  
|Cash flows from operating activities based on US GAAP, as
    previously reported |  | W    | 3,281,274  |   |      | W | 2,985,935  |  
|Revision related to returns on equity securities-dividends                        |  |      | 621        |   |      |   | 755        |  
|Revision related to trading security cash flows                                   |  |      | (137,618   | ) |      |   | 240,204    |  
|                                                                                  |  |      |            |   |      |  
|Cash flows from operating activities based on US GAAP, as
    revised             |  | W    | 3,144,277  |   |      | W | 3,226,894  |  
|                                                                                  |  |      |            |   |      |  
|Cash flows from investing activities based on US GAAP, as
    previously reported |  | W    | (1,422,512 | ) |      | W | (1,393,190 | )
|Revision related to returns on equity securities-dividends                        |  |      | (621       | ) |      |   | (755       | )
|Revision related to trading security cash flows                                   |  |      | 137,618    |   |      |   | (240,204   | )
|                                                                                  |  |      |            |   |      |  
|Cash flows from investing activities based on US GAAP, as
    revised             |  | W    | (1,285,515 | ) |      | W | (1,634,149 | )
|                                                                                  |  |      |            |   |      |  



|    |                                             
|--- | --------------------------------------------
|31. | ADDITIONAL DISCLOSURES REQUIRED BY U.S. GAAP



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



|                  |  |                         |         |  |      |   |         |      |  |   |         |  
|----------------- |  | ----------------------- | ------- |  | ---- | - | ------- | ---- |  | - | ------- | -
|                  |  | Year Ended December 31, |        
|                  |  |                         |        
|                  |  | 2003                    |         |  | 2004 |   |         | 2005 | 
|                  |  |                         |         |  |      |   |         |      | 
|Currently payable |  | W                       | 668,180 |  |      | W | 551,405 |      |  | W | 685,541 |  
|Deferred          |  |                         | 143,257 |  |      |   | 59,669  |      |  |   | (18,422 | )
|                  |  |                         |         |  |      |   |         |      | 
|                  |  | W                       | 811,437 |  |      | W | 611,074 |      |  | W | 667,119 |  
|                  |  |                         |         |  |      |   |         |      | 



|                                                                                      |  |                         |         |   |      |   |         |      |  |   |          |  
|------------------------------------------------------------------------------------- |  | ----------------------- | ------- | - | ---- | - | ------- | ---- |  | - | -------- | -
|                                                                                      |  | Year Ended December 31, |        
|                                                                                      |  |                         |        
|                                                                                      |  | 2003                    |         |   | 2004 |   |         | 2005 | 
|                                                                                      |  |                         |         |   |      |   |         |      | 
|Income taxes at statutory income tax rate of 27% in 2003 and
    2004 and 25% in 2005 |  | W                       | 776,030 |   |      | W | 584,843 |      |  | W | 670,776  |  
|Resident surtax payable                                                               |  |                         | 77,603  |   |      |   | 58,484  |      |  |   | 67,078   |  
|Tax credit for investments, technology, human resource
    development and others     |  |                         | (83,826 | ) |      |   | (89,080 | )    |  |   | (100,160 | )
|Special surtax for agriculture and fishery industries and other                       |  |                         | 13,685  |   |      |   | 13,736  |      |  |   | 18,850   |  
|Undistributed earnings of subsidiaries                                                |  |                         | (5,909  | ) |      |   | 11,011  |      |  |   | 4,846    |  
|Effect of change in income tax rate                                                   |  |                         | (7,943  | ) |      |   |        |      |  |   |         |  
|Other permanent differences                                                           |  |                         | 20,719  |   |      |   | 28,705  |      |  |   | 19,637   |  
|Change in valuation allowance                                                         |  |                         | 21,078  |   |      |   | 3,375   |      |  |   | (13,908  | )
|                                                                                      |  |                         |         |   |      |   |         |      | 
|Recorded income taxes                                                                 |  | W                       | 808,892 |   |      | W | 611,074 |      |  | W | 667,119  |  
|                                                                                      |  |                         |         |   |      |   |         |      | 
|Effective tax rate                                                                    |  |                         | 28.23   | % |      |   | 28.21   | %    |  |   | 24.86    | %
|                                                                                      |  |                         |         |   |      |   |         |      | 

F-75



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##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                        |                                                                  |              |          |          |      |   |          |          |   |   |          |          |  
|--------------------------------------- | ---------------------------------------------------------------- | ------------ | -------- | -------- | ---- | - | -------- | -------- | - | - | -------- | -------- | -
|                                        |                                                                  | December 31, |         
|                                        |                                                                  |              |         
|                                        |                                                                  | 2003         |          |          | 2004 |   |          | 2005     |  
|                                        |                                                                  |              |          |          |      |   |          |          |  
|Current:                                |                                                                  |              |          |          |      |   |          |          |   |   |          |         
|                                        | Allowance for doubtful accounts                                  |              | W        | 22,039   |      |   | W        | 19,649   |   |   | W        | 39,334   |  
|                                        | Write-off of doubtful accounts                                   |              |          | 9,587    |      |   |          | 9,764    |   |   |          | 9,239    |  
|                                        | Marketable trading securities                                    |              |          | 1        |      |   |          | (561     | ) |   |          |         |  
|                                        | Accrued income                                                   |              |          | (2,026   | )    |   |          | (2,463   | ) |   |          | (1,229   | )
|                                        | Net operating loss carryforwards                                 |              |          |         |      |   |          |         |   |   |          | 17       |  
|                                        | Tax credit carryforwards                                         |              |          |         |      |   |          |         |   |   |          | 89       |  
|                                        | Accrued expenses and other                                       |              |          | 35,622   |      |   |          | 50,189   |   |   |          | 50,004   |  
|                                        |                                                                  |              |          |          |      |   |          |          |  
|                                        |                                                                  |              | 65,223   |          |      |   | 76,578   |          |   |   | 97,454   |         
|                                        |                                                                  |              |          |          |      |   |          |          |  
|Non-current:                            |                                                                  |              |          |          |      |   |          |          |   |   |          |         
|                                        | Depreciation                                                     |              |          | 3,935    |      |   |          | (34,371  | ) |   |          | (58,745  | )
|                                        | Loss on disposition of properties                                |              |          |         |      |   |          | 11,480   |   |   |          |         |  
|                                        | Loss on impairment and valuation of investment securities (note) |              |          | 74,928   |      |   |          | 58,419   |   |   |          | 32,959   |  
|                                        | Foreign exchange losses                                          |              |          | 774      |      |   |          |         |   |   |          |         |  
|                                        | Equity in losses (earnings) of affiliates                        |              |          | (6,593   | )    |   |          | (12,671  | ) |   |          | (7,471   | )
|                                        | Undistributed earnings of subsidiaries                           |              |          | (3,364   | )    |   |          | (9,434   | ) |   |          | 13,732   |  
|                                        | Tax free reserve for technology development                      |              |          | (182,518 | )    |   |          | (195,103 | ) |   |          | (211,208 | )
|                                        | Tax free reserve for loss on disposal of treasury stock          |              |          | (130,373 | )    |   |          | (130,372 | ) |   |          | (130,372 | )
|                                        | Tax credit carryforwards                                         |              |          | 1,162    |      |   |          | 5,003    |   |   |          |         |  
|                                        | Net operating loss carryforwards                                 |              |          |         |      |   |          | 25,371   |   |   |          | 24,108   |  
|                                        | Deferred charges and other                                       |              |          | 46,780   |      |   |          | (7,205   | ) |   |          | 11,867   |  
|                                        |                                                                  |              |          |          |      |   |          |          |  
|                                        |                                                                  |              | (195,269 | )        |      |   | (288,883 | )        |   |   | (325,130 | )       
|                                        |                                                                  |              |          |          |      |   |          |          |  
|Total deferred tax assets (liabilities) |                                                                  | W            | (130,046 | )        |      | W | (212,305 | )        |   | W | (227,676 | )       
|                                        |                                                                  |              |          |          |      |   |          |          |  






|       |                                                                                                                                                                                                                                                                         
|------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(note) | Unrealized gain on valuation of investment securities as of
    December 31, 2003, 2004 and 2005 were recorded as a
    separate component of shareholders equity, net of tax
    effect of W18,287 million,
    W39,210 million and
    W48,019 million, respectively.

F-76



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##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


b.     Fair Value of Financial
Instruments




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




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




F-77



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##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                       |                                                                                                                                                           |                             |           |           |            |  |          |           |         |   |            |           |         |          |   |           |            |   |           |           |         |  |   |           |         | 
|---------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------- | --------- | --------- | ---------- |  | -------- | --------- | ------- | - | ---------- | --------- | ------- | -------- | - | --------- | ---------- | - | --------- | --------- | ------- |  | - | --------- | ------- | 
|                       |                                                                                                                                                           | 2003                        |           |           | 2004       |  |          | 2005      |        
|                       |                                                                                                                                                           |                             |           |           |            |  |          |           |        
|                       |                                                                                                                                                           | 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         | 472,410   |            |  | W        | 472,410   |         |   | W          | 383,360   |         |          | W | 383,360   |            |   | W         | 486,215   |         |  | W | 486,215   |        
|                       | Trading securities                                                                                                                                        |                             |           | 893,217   |            |  |          | 893,217   |         |   |            | 654,779   |         |          |   | 654,779   |            |   |           | 777,472   |         |  |   | 777,472   |        
|                       | Accounts receivable (trade and other)                                                                                                                     |                             |           | 3,000,918 |            |  |          | 3,000,918 |         |   |            | 3,126,754 |         |          |   | 3,126,754 |            |   |           | 3,038,936 |         |  |   | 3,038,936 |        
|                       | Short-term loans                                                                                                                                          |                             |           | 41,933    |            |  |          | 41,933    |         |   |            | 51,232    |         |          |   | 51,232    |            |   |           | 62,290    |         |  |   | 62,290    |        
|                       | Investment securities:                                                                                                                                    |                             |           |           |            |  |          |           |         |   |            |           |         |          |   |           |            |   |           |           |         |  |   |           |        
|                       |                                                                                                                                                           | Listed equity and debts     |           |           | 503,000    |  |          |           | 503,000 |   |            |           | 599,287 |          |   |           | 599,287    |   |           |           | 864,986 |  |   |           | 864,986 | 
|                       |                                                                                                                                                           | Non- listed equity (note b) |           |           | 385,707    |  |          |           | N/A     |   |            |           | 352,523 |          |   |           | N/A        |   |           |           | 353,168 |  |   |           | N/A     | 
|                       | Long-term bank deposits                                                                                                                                   |                             |           | 352       |            |  |          | 352       |         |   |            | 10,351    |         |          |   | 10,351    |            |   |           | 1,479     |         |  |   | 1,479     |        
|                       | Long-term loans                                                                                                                                           |                             |           | 13,947    |            |  |          | 10,460    |         |   |            | 12,019    |         |          |   | 9,014     |            |   |           | 7,093     |         |  |   | 5,320     |        
|                       |                                                                                                                                                           |                             |           |           |            |  |          |           |         |   |            |           |         |          |   |           |            |  
|                       |                                                                                                                                                           | W                           | 5,311,484 |           |            |  |          |           |         | W | 5,190,305  |           |         |          |   |           |            | W | 5,591,639 |           |         |  |   |          
|                       |                                                                                                                                                           |                             |           |           |            |  |          |           |         |   |            |           |         |          |   |           |            |  
|Financial liabilities: |                                                                                                                                                           |                             |           |           |            |  |          |           |         |   |            |           |         |          |   |           |            |   |           |           |         |  |   |          
|                       | Accounts payable                                                                                                                                          |                             | W         | 1,317,162 |            |  | W        | 1,317,162 |         |   | W          | 1,205,682 |         |          | W | 1,205,682 |            |   | W         | 1,094,855 |         |  | W | 1,094,855 |        
|                       | Short-term borrowings                                                                                                                                     |                             |           | 1,236,197 |            |  |          | 1,236,197 |         |   |            | 425,496   |         |          |   | 425,496   |            |   |           | 4,614     |         |  |   | 4,614     |        
|                       | Bonds payable, long-term borrowings, convertible bonds,
    long-term payables  other and obligation under
    capital leases, including current portion |                             |           | 4,201,707 |            |  |          | 4,283,402 |         |   |            | 4,044,258 |         |          |   | 4,211,926 |            |   |           | 3,763,135 |         |  |   | 3,825,813 |        
|                       |                                                                                                                                                           |                             |           |           |            |  |          |           |         |   |            |           |         |          |   |           |            |  
|                       |                                                                                                                                                           | W                           | 6,755,066 |           |            |  |          |           |         | W | 9,234,563  |           |         |          |   |           |            | W | 4,862,604 |           |         |  |   |          
|                       |                                                                                                                                                           |                             |           |           |            |  |          |           |         |   |            |           |         |          |   |           |            |  








|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|-------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(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, 2004 and 2005 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 and 2005, unrealized gain on
    valuation of investment in Powercomm of
    W3,158 million and
    W8,723 million have been recorded as other
    comprehensive income, respectively.

F-78



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##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


c.     Comprehensive Income




|                                 |                                                  |                                          |           |        |         |   |           |         |         |   |           |        |        |  
|-------------------------------- | ------------------------------------------------ | ---------------------------------------- | --------- | ------ | ------- | - | --------- | ------- | ------- | - | --------- | ------ | ------ | -
|                                 |                                                  | 2003                                     |           |        | 2004    |   |           | 2005    |        
|                                 |                                                  |                                          |           |        |         |   |           |         |        
|Net income                       |                                                  | W                                        | 2,062,749 |        |         | W | 1,553,076 |         |         | W | 2,027,550 |       
|                                 |                                                  |                                          |           |        |         |   |           |         |        
|Other comprehensive income:      |                                                  |                                          |           |        |         |   |           |         |         |   |           |       
|                                 | Available-for-sale securities                    |                                          |           |        |         |   |           |         |         |   |           |        |       
|                                 |                                                  | Unrealized gain on investment securities |           |        | 93,738  |   |           |         | 67,645  |   |           |        | 34,915 |  
|                                 |                                                  | Less impact of realized losses(gains)    |           |        | (24,727 | ) |           |         | 8,434   |   |           |        | (3,065 | )
|                                 |                                                  | Tax effect                               |           |        | (18,978 | ) |           |         | (20,923 | ) |           |        | (8,808 | )
|                                 |                                                  |                                          |           |        |         |   |           |         |        
|                                 | Net change from available-for-sale securities    |                                          |           | 50,033 |         |   |           | 55,156  |         |   |           | 23,042 |       
|                                 | Foreign-based operations translation adjustments |                                          |           | (356   | )       |   |           | (11,128 | )       |   |           | (1,792 | )     
|                                 |                                                  |                                          |           |        |         |   |           |         |        
|Total other comprehensive income |                                                  |                                          | 49,677    |        |         |   | 44,028    |         |         |   | 21,250    |       
|                                 |                                                  |                                          |           |        |         |   |           |         |        
|Comprehensive income             |                                                  | W                                        | 2,112,426 |        |         | W | 1,597,104 |         |         | W | 2,048,800 |       
|                                 |                                                  |                                          |           |        |         |   |           |         |        

d.     Goodwill and other intangible
assets




Goodwill




|                    |                                                        |      |           |         |      |   |           |       |  |   |           |       | 
|------------------- | ------------------------------------------------------ | ---- | --------- | ------- | ---- | - | --------- | ----- |  | - | --------- | ----- | 
|                    |                                                        | 2003 |           |         | 2004 |   |           | 2005  | 
|                    |                                                        |      |           |         |      |   |           |       | 
|Beginning of period |                                                        | W    | 3,400,110 |         |      | W | 3,400,155 |       |  | W | 3,408,989 |      
|                    | Goodwill reclassifications to other intangibles assets |      |           | (16,437 | )    |   |           |      |  |   |           |      | 
|                    | Goodwill acquired during the period                    |      |           | 16,482  |      |   |           | 8,834 |  |   |           | 9,223 | 
|                    | Goodwill impairment losses                             |      |           |        |      |   |           |      |  |   |           |      | 
|                    |                                                        |      |           |         |      |   |           |       | 
|Ending of period    |                                                        | W    | 3,400,155 |         |      | W | 3,408,989 |       |  | W | 3,418,212 |      
|                    |                                                        |      |           |         |      |   |           |       | 

F-79



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##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


Other Intangible Assets




|                             |                          |                   |           |           |                   |   |          |                   |   |   |              |           |  |          |              |          |            |   |           |           |  |   |          |          |  
|---------------------------- | ------------------------ | ----------------- | --------- | --------- | ----------------- | - | -------- | ----------------- | - | - | ------------ | --------- |  | -------- | ------------ | -------- | ---------- | - | --------- | --------- |  | - | -------- | -------- | -
|                             |                          | December 31, 2003 |           |           | December 31, 2004 |   |          | December 31, 2005 |  
|                             |                          |                   |           |           |                   |   |          |                   |  
|                             |                          |                   |           |           |                   |   |          | Accumulated       |  
|                             |                          | Gross             |           |           |                   |   | Gross    |                   |   |   |              | Gross     |  |          | Amortization |         
|                             |                          | Carrying          |           |           | Accumulated       |   |          | Carrying          |   |   | Accumulated  |           |  | Carrying |              |          | and        |  
|                             |                          | Amount            |           |           | Amortization      |   |          | Amount            |   |   | Amortization |           |  | Amount   |              |          | Impairment |  
|                             |                          |                   |           |           |                   |   |          |                   |   |   |              |           |  |          |              |          |            |  
|Amortized intangible assets: |                          |                   |           |           |                   |   |          |                   |   |   |              |           |  |          |              |          |            |   |           |           |  |   |          |         
|                             | IMT license (13 years)   |                   | W         | 1,188,547 |                   |   | W        | (7,548            | ) |   | W            | 1,188,547 |  |          | W            | (98,183  | )          |   | W         | 1,188,547 |  |   | W        | (188,193 | )
|                             | Customer lists (4 years) |                   |           | 99,783    |                   |   |          | (64,088           | ) |   |              | 99,783    |  |          |              | (83,686  | )          |   |           | 99,783    |  |   |          | (99,783  | )
|                             | Other (2 to 20 years)    |                   |           | 552,279   |                   |   |          | (258,802          | ) |   |              | 718,291   |  |          |              | (354,021 | )          |   |           | 1,036,165 |  |   |          | (455,505 | )
|                             |                          |                   |           |           |                   |   |          |                   |   |   |              |           |  |          |              |          |            |  
|Total                        |                          | W                 | 1,840,609 |           |                   | W | (330,438 | )                 |   | W | 2,066,621    |           |  | W        | (535,890     | )        |            | W | 2,324,495 |           |  | W | (743,481 | )       
|                             |                          |                   |           |           |                   |   |          |                   |   |   |              |           |  |          |              |          |            |  

W W W W W W W W


e.     Other SK Group Companies






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



|                        |  |      |            |  |      |   |            |      |  |   |            | 
|----------------------- |  | ---- | ---------- |  | ---- | - | ---------- | ---- |  | - | ---------- | 
|                        |  | 2003 |            |  | 2004 |   |            | 2005 | 
|                        |  |      |            |  |      |   |            |      | 
|Wireless services       |  | W    | 8,401,021  |  |      | W | 8,762,376  |      |  | W | 9,148,363  | 
|Interconnection         |  |      | 1,017,056  |  |      |   | 849,407    |      |  |   | 898,621    | 
|Digital handset sales   |  |      | 611,981    |  |      |   | 649,809    |      |  |   | 294,557    | 
|Other                   |  |      | 180,306    |  |      |   | 272,974    |      |  |   | 359,911    | 
|                        |  |      |            |  |      |   |            |      | 
|Total operating revenue |  | W    | 10,210,364 |  |      | W | 10,534,566 |      |  | W | 10,701,452 | 
|                        |  |      |            |  |      |   |            |      | 

F-80



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##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




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





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











F-81



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##### Table of Contents



SK TELECOM CO., LTD. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




03-1, 03-1 03-1 03-1,


03-1.






F-82



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##### Table of Contents



SIGNATURES


20-F




| |                            
| | ---------------------------
| | SK TELECOM CO., LTD.       
| | (Registrant)               
|
| | /s/ Shin Bae Kim           
| |                            
| | (Signature)                
|
| | Shin Bae Kim               
| | Chief Executive Officer and
| | Representative Director    
| | (Name/ Title)              





---



##### Table of Contents



Exhibit Index


|       |    |             |  |                                                                                                                                                                                                                                                                                                                                                                
|------ | -- | ----------- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Number |    | Description
|       |    |            
|       | 1  | .1          |  | Memorandum and Articles of Association                                                                                                                                                                                                                                                                                                                         
|       | 2  | .1          |  | Deposit Agreement dated as of May 31, 1996, as amended by
    Amendment No. 1 dated as of March 15, 1999, Amendment
    No. 2 dated as of April 24, 2000 and Amendment
    No. 3 dated as of July 24, 2002, entered into among SK
    Telecom Co., Ltd., Citibank, N.A., as Depositary, and all
    Holders and Beneficial Owners of American Depositary Shares
|       | 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          |  | Korean Commercial Code (together with English translation)*                                                                                                                                                                                                                                                                                                    
|       | 4  | .6          |  | Amendment to Korean Commercial Code dated December 29, 2001
    (together with English translation)**                                                                                                                                                                                                                                                          
|       | 4  | .7          |  | Korean Securities and Exchange Act, as amended (English
    translation)                                                                                                                                                                                                                                                                                       
|       | 8  | .1          |  | List of Subsidiaries of SK Telecom Co., Ltd.                                                                                                                                                                                                                                                                                                                   
|       | 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 Anjin LLC                                                                                                                                                                                                                                                                                                                                  




|    |  |                                                                          
|--- |  | -------------------------------------------------------------------------
|*   |  | Filed previously as exhibits to our Form 20-F filed on
    June 30, 2000.
|**  |  | Filed previously as exhibits to our Form 20-F filed on
    June 28, 2002.
|*** |  | Filed previously as exhibits to our Form 20-F filed on
    May 31, 2005.