Technology and Communications

SK Group is undergoing a sweeping reorganization and an expedited year-end executive reshuffle, with SK Telecom implementing significant workforce reductions primarily targeting executive positions and its AI operations. This restructuring is driven by the company's strategic pivot to become an 'AI-first' company, aiming for ₩5 trillion (~$3.5B) in annual AI revenue by 2030. This led to the consolidation and streamlining of its AI operations, particularly within the AI CIC (Company-in-Company) unit, where all approximately 1,000 employees were offered voluntary retirement packages, and about 40% of executives have already lost their positions. Additionally, a high-profile hacking incident in April 2025 severely impacted SK Telecom's earnings, resulting in its first-ever quarterly net loss in the third quarter of 2025. This incident incurred a 134.8 billion won ($99.3 million) regulatory fine and a 500 billion won ($349 million) customer compensation package, serving as a decisive factor for the cuts. The reorganization also addresses overlapping tasks from the integration of multiple AI organizations and aims to improve functional efficiency across the conglomerate. The SUPEX Council, SK Group's top consultative body, is also undergoing significant staff reductions of 40-50%, as SK shifts executional roles back to its subsidiaries while maintaining the council's strategic oversight functions. These changes are part of a broader SK Group initiative to reduce its numerous affiliates to a more manageable range and focus on 'qualitative growth' and a 'back to basics' approach.