The South Korean telecommunications industry is witnessing a notable divergence in financial performance for the second quarter of 2026, largely driven by the lingering impacts of major hacking incidents that plagued the sector last year. As the trio—SK Telecom (SKT), KT, and LG Uplus—navigate the shifting landscape, the market is bracing for a mixed bag of results.
According to market tracker FnGuide, the combined revenue for the three major telcos in Q2 is projected to reach 15.21 trillion KRW, a 2.6% decline compared to the same period last year. Combined operating profit is expected to contract by 12.7% to 1.45 trillion KRW.
SK Telecom: A Robust Rebound
SK Telecom is poised to report a significant recovery. Analysts estimate its Q2 operating profit at 527.1 billion KRW, a sharp 55.8% increase from the previous year. This performance is largely attributed to a "base effect." In Q2 2025, SKT faced severe setbacks, including a regulatory sales suspension following a SIM-swapping hacking incident and nearly 200 billion KRW in costs to replace user SIM cards and bolster retention marketing. With those extraordinary costs now largely behind them, coupled with the growing AI Data Center (AIDC) business under its subsidiary, SK Broadband, the company is successfully normalizing its profitability.
KT: Facing the Headwinds of Hacking Costs
In contrast, KT is anticipated to face a difficult quarter, with operating profit projected to plummet by 39.5% year-on-year to 613.5 billion KRW. KT’s challenge is twofold: the absence of last year’s one-off gains from a large-scale real estate development project in Northern Seoul, and the ongoing costs associated with its post-hacking compensation programs. Since February 2026, KT has been offering free data (100GB per month) and OTT service passes to all customers as a remedial measure. These expenses, combined with a trend of subscribers downgrading their service plans, are weighing heavily on the company's wireless service revenue.
LG Uplus: Steady Growth Through Efficiency
LG Uplus is projected to maintain a stable growth trajectory, with revenue and operating profit estimated at 3.91 trillion KRW and 306.7 billion KRW, respectively—marking modest increases of 1.6% and 0.7%. Industry analysis suggests that LG Uplus has benefited from subscribers shifting from its competitors in the wake of their security crises. Furthermore, the company’s focus on cost efficiency and the expansion of its B2B sector, particularly the AIDC business, have served as key pillars for its steady performance.
Industry Challenges: Structural Stagnation and Future Hurdles
Beyond the specific hacking-related issues, the telecommunications industry is grappling with a more structural problem: the plateauing growth of wireless subscribers. As the mobile market reaches saturation, the growth in service revenue remains severely restricted. While all three companies are aggressively expanding into AIDC and B2B sectors to find new growth engines, these segments currently account for only a small portion of their total revenue.
Looking toward the second half of the year, the industry faces additional risks. Expected marketing costs related to the launch of new flagship smartphones and continued infrastructure investment for the transition to 5G Standalone (SA) networks are likely to exert further pressure on overall profitability.
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