| Share-based payment Arrangement |
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Share-based payment Arrangement |
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25.1 |
Share-based payment arrangement of the Parent Company |
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(1) |
Terms and conditions related to the grants of the share-based payment arrangement are as follows: |
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1) |
Share-based payment arrangement with cash alternatives |
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| Grant date |
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March 26, 2020 |
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March 25, 2021 |
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March 25, 2022 |
| Types of shares to be issued |
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Registered common shares of the Parent Company |
| Grant method |
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Reissue of treasury shares, Cash settlement |
| Number of shares (in share) |
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32,947 |
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71,726 |
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98,425 |
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96,820 |
| Exercise price (in won) |
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38,452 |
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50,276 |
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56,860 |
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56,860 |
| Exercise period |
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Mar. 27, 2023 ~ Mar. 26, 2027 |
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Mar. 26, 2023 ~ Mar. 25, 2026 |
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Mar. 26, 2025 ~ Mar. 25, 2029 |
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Mar. 26, 2024 ~ Mar. 25, 2027 |
| Vesting conditions |
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3 years’ service from the grant date |
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2 years’ service from the grant date |
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2 years’ service from the grant date |
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2 years’ service from the grant date |
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(*) |
For the year ended December 31, 2025, some portions of stock options granted in the 5 th series were exercised. |
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2) |
Cash-settled share-based payment arrangement | The entire amount of remaining share appreciation rights for shares of SK Telecom Co., Ltd. granted in 2022 was not exercised and was fully forfeited during the year ended December 31, 2025.
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3) |
Equity-settled share-based payment arrangement | The Parent Company established Performance Share Units (”PSU”) for executives of the Parent Company and major subsidiaries as part of the compensation based on the growth of corporate value during the year ended December 31, 2023, and the details are as follows:
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PSU of SK Telecom Co., Ltd. |
| Grant date |
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March 28, 2023 |
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March 26, 2024 |
| Types of shares to be issued |
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Registered common shares of the Parent Company |
| Grant method |
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Reissue of treasury shares |
| Number of shares(*) |
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Fluctuates according to the share price on the expiration date and the cumulative increase rate of KOSPI200 |
| Reference share price (in won) |
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47,280 |
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52,720 |
| Reference index (KOSPI200) |
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315 |
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362 |
| Maturity (exercise date) |
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The day in which the annual general meeting of shareholders is held after 3 years from the grant date |
| Vesting conditions |
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Full service in the year in which the grant date is included |
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(*) |
The initial grant amounted to ₩10,813 million in 2023 and ₩12,835 million in 2024. The number of shares to be delivered is determined based on the adjustment rate calculated using the share price on the expiration date and the cumulative increase rate of KOSPI200. |
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(2) |
Share compensation expense for share-based payment arrangements with cash alternatives recognized for the year ended December 31, 2025 is as follows, and there is no remaining share compensation expense to be recognized in subsequent periods. |
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Share compensation
expense |
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| Cumulative amount through December 31, 2024 |
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₩ |
158,596 |
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| For the year ended December 31, 2025 |
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(439 |
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₩ |
158,157 |
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| The liabilities recognized by the Parent Company in relation to the share-based payment arrangement with cash alternatives are ₩1,134 million and ₩7,283 million, respectively, which are included in accrued expenses as of December 31, 2025 and 2024. As of December 31, 2024, the carrying amount of liabilities recognized by the Parent Company in relation to the cash-settled share-based payment arrangement are ₩305 million and no liability was recognized as of December 31, 2025. Share compensation expenses recognized for the Parent Company’s equity-settled share-based payment arrangements ₩6,286 million for the year ended December 31, 2024, and no expense was recognized for the year ended December 31, 2025.
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(3) |
The Parent Company used option-pricing models, including the binomial model, on the measurement of the fair value of the share options and the inputs used in the model are as follows: |
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1) |
Share-based payment arrangement with cash alternatives | (i) SK Telecom Co., Ltd.
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| Risk-free interest rate |
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2.65 |
% |
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2.43 |
% |
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3.02 |
% |
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2.64 |
% |
| Estimated option’s life |
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7 years |
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5 years |
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7 years |
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5 years |
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| Share price on the remeasurement date |
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53,500 |
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53,500 |
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53,500 |
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53,500 |
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| Expected volatility |
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15.30 |
% |
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15.30 |
% |
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15.30 |
% |
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15.30 |
% |
| Expected dividends yield |
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6.62 |
% |
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6.62 |
% |
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6.62 |
% |
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6.62 |
% |
| Exercise price |
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38,452 |
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50,276 |
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56,860 |
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56,860 |
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Per-share fair value of the option |
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15,048 |
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3,394 |
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2,520 |
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1,518 |
| (ii) SK Square Co., Ltd.
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| Risk-free interest rate |
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1.52 |
% |
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1.55 |
% |
| Estimated option’s life |
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7 years |
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5 years |
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| Share price (Closing price on the preceding day) |
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34,900 |
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49,800 |
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| Expected volatility |
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8.10 |
% |
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25.70 |
% |
| Expected dividends yield |
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5.70 |
% |
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4.00 |
% |
| Exercise price |
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38,452 |
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50,276 |
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Per-share fair value of the option |
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192 |
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8,142 |
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2) |
Equity-settled share-based payment arrangement |
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PSU of SK Telecom Co., Ltd. |
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PSU of SK Telecom Co., Ltd. |
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| Risk-free interest rate |
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3.26 |
% |
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3.30 |
% |
| Estimated option’s life |
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3 years |
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3 years |
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| Share price on the grant date |
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48,500 |
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54,100 |
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| Expected volatility |
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18.67 |
% |
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15.90 |
% |
| Expected dividends yield |
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4.90 |
% |
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5.40 |
% |
Per-share fair value of the option |
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27,525 |
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25,920 |
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25.2 |
Share-based payment arrangement by SAPEON Inc., a subsidiary of the Parent Company | The entire amount of remaining share-based payment arrangement granted by SAPEON Inc. to its employees was not exercised and was fully forfeited during the year ended December 31, 2025.
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