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Photo courtesy of Yonhap News |
[Alpha Biz= Paul Lee] Seoul, October 10 — South Korea’s three largest mobile carriers — SK Telecom, KT, and LG Uplus — are expected to post weak earnings in the third quarter, marking the first time in three quarters that their combined operating profit will fall below ₩1 trillion. Analysts attribute the downturn to one-off costs tied to recent hacking incidents, fines, and customer compensation programs.
According to financial data provider FnGuide, the combined Q3 revenue of the three carriers is projected at ₩14.73 trillion, down 1.7% year-on-year, while their combined operating profit is expected to plunge 31.6% to ₩850.9 billion.
SK Telecom Hit Hardest by Data Breach Fallout
The most severe impact is expected at SK Telecom, whose profits have been heavily dented by compensation payments and regulatory fines related to its April data breach. The company implemented a 50% discount on mobile service fees for affected customers in August, significantly cutting into sales, while also recognizing a ₩134.8 billion fine imposed by the Personal Information Protection Commission (PIPC) as a cost item.
SK Telecom’s Q3 revenue is projected to reach ₩3.95 trillion, down 12.9% year-on-year, with operating profit expected to plummet 90.3% to ₩51.6 billion.
KT Maintains Steady Growth but Faces Image Risks
KT Corp. initially benefited from the SKT hacking incident, gaining subscribers in Q2, but its own unauthorized small-payment scandal in September reversed the trend. Data from the Korea Telecommunications Operators Association (KTOA) showed that KT suffered a net loss of 2,992 mobile subscribers last month.
KT’s Q3 revenue is estimated at ₩6.89 trillion, up 3.5% year-on-year, while operating profit is projected to rise 18.1% to ₩548.3 billion.
LG Uplus Impacted by Workforce Restructuring
LG Uplus is also expected to see muted results due to higher labor costs from voluntary retirement programs. Analysts forecast Q3 revenue of ₩3.89 trillion (+2.4% YoY) and operating profit of ₩251 billion (+2.0% YoY).
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
