Operating Segments

12 Months Ended

Dec. 31, 2025

4.	Operating Segments

The Group’s operating segments have been identified to be each business unit, by which the Group provides different services and sells merchandise. The Group’s reportable segments include: cellular services, which mainly include cellular voice service, wireless data service and wireless internet services; fixed-line telecommunication services, which mainly include telephone services, internet services, and leased line services; and all other businesses, which include providing shopping channel and digital platform for selling products and other immaterial operations, each of which does not meet the quantitative threshold to be considered as a reportable segment and are presented collectively as others.

(1)

Segment information for the years ended December 31, 2025, 2024 and 2023 are as follows:



(In millions of won)
	2025
	Cellular services		Fixed-line telecommunication services		Others			Sub-total		Adjustments (*)			Total
Total revenue	₩	14,155,266		5,421,288		390,147			19,966,701		(2,867,488	)		17,099,213
Inter-segment revenue		1,602,723		1,230,175		34,590			2,867,488		(2,867,488	)		—
External revenue		12,552,543		4,191,113		355,557			17,099,213		—			17,099,213
Depreciation and amortization		2,551,737		993,930		18,979			3,564,646		(97,512	)		3,467,134
Operating profit (loss)		817,941		308,372		(30,551	)		1,095,762		(47,261	)		1,048,501
Finance income (costs), net														(262,638	)
Loss relating to investments in subsidiaries, associates and joint ventures, net														(63,602	)
Profit before income tax														722,261

(In millions of won)
	2024
	Cellular services		Fixed-line telecommunication services		Others			Sub-total		Adjustments (*)			Total
Total revenue	₩	14,866,217		5,271,705		614,036			20,751,958		(2,811,349	)		17,940,609
Inter-segment revenue		1,548,004		1,196,293		67,052			2,811,349		(2,811,349	)		—
External revenue		13,318,213		4,075,412		546,984			17,940,609		—			17,940,609
Depreciation and amortization		2,688,764		966,904		25,824			3,681,492		(121,118	)		3,560,374
Operating profit (loss)		1,529,971		366,517		(64,929	)		1,831,559		(140,697	)		1,690,862
Finance income (costs), net														(250,884	)
Gain relating to investments in subsidiaries, associates and joint ventures, net														321,787
Profit before income tax														1,761,765



(In millions of won)
	2023
	Cellular services		Fixed-line telecommunication services		Others			Sub-total		Adjustments (*)			Total
Total revenue	₩	14,664,180		5,095,704		603,493			20,363,377		(2,754,866	)		17,608,511
Inter-segment revenue		1,541,014		1,167,684		46,168			2,754,866		(2,754,866	)		—
External revenue		13,123,166		3,928,020		557,325			17,608,511		—			17,608,511
Depreciation and amortization		2,743,448		971,628		24,390			3,739,466		(124,700	)		3,614,766
Operating profit (loss)		1,463,934		329,072		(42,771	)		1,750,235		6,041			1,756,276
Finance income (costs), net														(279,025	)
Gain relating to investments in subsidiaries, associates and joint ventures, net														10,928
Profit before income tax														1,488,179

(*)

Adjustments for operating profit (loss) are the amount differences from operating profit (loss) included in CODM report which is based on Korean IFRS to operating profit (loss) under IFRS. The reconciliation of these amounts is included in note

4-(2).

Adjustments for depreciation and amortization and operating profit (loss) also included the amount due to the consolidation adjustments, such as internal transactions.

(2)

Reconciliation of total segment operating profit to consolidated operating profit for the years ended December 31, 2025, 2024 and 2023 are as follows:


(In millions of won)
	2025			2024			2023
Total segment operating profit (Before adjustments)	₩	1,095,762			1,831,559			1,750,235
Adjustments(*1)		(22,547	)		(8,150	)		2,969

Total segment operating profit		1,073,215			1,823,409			1,753,204

Other operating income:
Gain on disposal of property and equipment and intangible assets		127,058			37,316			21,898
Others		43,376			34,972			28,468

		170,434			72,288			50,366
Other operating expenses:
Impairment loss on property and equipment and intangible assets		(3,140	)		(94,736	)		(10,369	)
Impairment loss on assets held for sale		(12,320	)		—			—
Loss on disposal of property and equipment and intangible assets		(15,296	)		(17,427	)		(9,369	)
Donations		(15,339	)		(15,712	)		(14,766	)
Bad debt for accounts receivable – other		(3,282	)		(4,838	)		(5,256	)
Others(*2)		(145,771	)		(72,122	)		(7,534	)

		(195,148	)		(204,835	)		(47,294	)

Consolidated operating profit	₩	1,048,501			1,690,862			1,756,276

(*1)

Adjustments for operating profit included the amount due to the consolidation adjustments, such as internal transactions.

(*2)

Others for the years ended December 31, 2025 and 2024 include ₩134.8 billion and ₩55.4 billion of penalties, respectively, and various other expenses with inconsequential amounts.

Domestic revenue for the years ended December 31, 2025, 2024 and 2023 amounts to ₩17,096 billion, ₩17,936 billion and ₩17,602 billion, respectively. Domestic

non-current

assets (excluding financial assets, investments in associates and joint ventures and deferred tax assets) as of December 31, 2025, 2024 and 2023 amount to ₩17,281 billion, ₩18,230 billion and ₩19,285 billion, and

non-current

assets outside of Korea amount to ₩5 billion, ₩3 billion and ₩3 billion, respectively.

The Group principally operates its businesses in Korea, and substantially all of its operations are conducted in Korea, with activities outside Korea being immaterial. Therefore, no entity-wide geographical information is presented.

No single customer contributed 10% or more to the Group’s total revenue for the years ended December 31, 2025, 2024 and 2023.

(3)

Disaggregation of operating revenues considering the economic factors that affect the nature, amounts, timing and uncertainty of the Group’s revenue and future cash flows is as follows:


(In millions of won)
		2025		2024		2023
Goods and Services transferred at a point in time:
Cellular revenue	Goods and others(*1)	₩	1,034,695		1,078,673		993,919
Fixed-line telecommunication revenue	Goods and others		86,249		68,836		93,174
Other revenue	Others(*2)		325,417		468,518		459,905

			1,446,361		1,616,027		1,546,998

Goods and Services transferred over time:
Cellular revenue	Wireless service(*3)		9,715,601		10,401,565		10,328,980
	Cellular interconnection		369,870		400,516		432,660
	Other(*4)		1,432,377		1,437,459		1,367,607
Fixed-line telecommunication revenue	Fixed-line service		142,500		156,453		147,669
	Cellular interconnection		12,384		14,014		15,804
	Internet Protocol Television(*5)		1,806,840		1,837,199		1,837,209
	International calls		200,860		213,745		190,872
	Internet service and miscellaneous(*6)		1,942,280		1,785,165		1,643,292
Other revenue	Miscellaneous		30,140		78,466		97,420

			15,652,852		16,324,582		16,061,513

		₩	17,099,213		17,940,609		17,608,511

(*1)

Cellular revenue includes revenue from sales of handsets and other electronic accessories.

(*2)

Other revenue includes revenue from considerations received for providing data-broadcasting channel and broadcasting services for product sale programs, as well as revenue from the sale of goods through data-broadcasting channel.

(*3)

Wireless service revenue includes revenue from wireless voice and data transmission services, which is collected from the wireless subscribers. During the year ended December 31, 2025, the wireless service revenue was reduced by ₩454,143 million

reflecting the impact of Customer Appreciation Package and early cancellation fee waivers provided to customers as part of the measures taken in response to a cybersecurity incident related to cellular services segment.

(*4)

Other revenue includes revenue from billing and collection services, solution services, and other miscellaneous services.

(*5)

Internet Protocol Television (“IPTV”) service revenue includes revenue from IPTV services principally derived from usage charges to IPTV subscribers.

(*6)

Internet service and miscellaneous revenue includes revenue from high speed broadband internet service principally derived from usage charges to subscribers as well as other miscellaneous services.