Section 1 – Conflict Minerals Disclosure
|
Item 1.01
|
Conflict Minerals Disclosure and Report
|
SK Telecom Co., Ltd. is Korea’s leading wireless telecommunications services provider and has continued to pioneer the commercial
development and implementation of
state-of-the-art
wireless and fixed-line technologies and services as well as develop its
next-generation growth businesses in Internet of Things (“IoT”) solutions, media,
e-commerce,
security and other innovative products offered through its platform services, including artificial
intelligence solutions. All references to “we,” “us,” or “our” shall mean SK Telecom Co., Ltd. and unless the context otherwise requires, its consolidated subsidiaries.
Our operations are reported in four segments: cellular services, fixed-line telecommunication services,
e-commerce
services and other businesses. In our cellular services segment, we earn revenue principally from our wireless voice and data transmission services through monthly plan-based fees, usage charges for
outgoing voice calls, usage charges for wireless data services and value-added service fees paid by our wireless subscribers as well as interconnection fees paid to us by other telecommunications operators for use of our wireless network by their
customers and subscribers. In our fixed-line telecommunication services segment, we earn revenue principally from our fixed-line telephone services and broadband Internet services and advanced media platform services (including Internet protocol TV
and mobile
over-the-top
services) through monthly plan-based fees and usage charges as well as interconnection fees paid to us by other telecommunications operators for
use of our fixed-line network by their customers and subscribers. In our
e-commerce
services segment, we derive revenue from our subsidiary Eleven Street Co., Ltd., which was
spun-off
as our new consolidated subsidiary from SK Planet Co., Ltd. in September 2018. Eleven Street Co., Ltd. generates revenue principally through third party seller fees earned (including commissions) for
transactions in which it acts as a selling agent to the “mini malls” on 11st, its online open marketplace platform, as well as advertising revenue and other commerce solutions from 11st. In our others segment, we earn revenue from our
“Nate” portal service operated by our subsidiary, SK Communications Co., Ltd., and miscellaneous other businesses, including the marketing platform business of SK Planet Co., Ltd., our physical and information security businesses operated
through ADT CAPS Co., Ltd. (which we acquired in October 2018 and subsequently merged with our former subsidiary NSOK Co., Ltd.) and SK Infosec Co., Ltd. (which we acquired in December 2018) and certain other businesses.
A company is required to file this Report pursuant to Rule
13p-1
promulgated under the Securities
Exchange Act of 1934, as amended, if it manufactures, or contracts to manufacture, products for which certain specified minerals are necessary to the functionality or production of the products, regardless of the geographic origin of the minerals
and whether or not they fund armed conflict. These minerals are referred to as “conflict minerals” (also referred to as “3TG minerals” in this Report) and consist of columbite-tantalite (coltan), cassiterite and wolframite (and
their derivatives tantalum, tin, and tungsten), and gold.
We manufacture, or contract to manufacture, certain products for which 3TG
minerals are necessary to the functionality or production of those products. Accordingly, we conducted in good faith a reasonable country of origin inquiry (“RCOI”) regarding 3TG minerals contained in our products manufactured in calendar
year 2018. We believe our RCOI was reasonably designed to determine whether any 3TG minerals contained in those products originated in the Democratic Republic of the Congo (DRC) or an adjoining country (together, the “Covered Countries”),
or are from recycled or scrap sources.
We first conducted a detailed review of our purchases of materials necessary to the functionality
or production of our products that we manufactured in 2018 to determine whether we purchase any 3TG minerals. We determined that certain of our products (collectively, the “covered products”) contain some 3TG minerals (namely, tantalum,
tin and gold) that are necessary to the functionality or production of those products. We do not directly purchase 3TG minerals, nor do we have any direct relationship with any mines or smelters that process these minerals. In conducting our RCOI,
we conducted a supply-chain survey with our subsidiaries and suppliers using the Electronic Industry Citizenship Coalition and Global
e-Sustainability
(“EICC-GeSI”) Conflict Minerals Reporting
Template. We required our direct suppliers of materials for covered products to complete certifications concerning their manufacturing practices and the materials they supply to us. All of our suppliers of materials for covered products manufactured
in 2018 certified that the 3TG minerals contained in materials supplied to us were not sourced from Covered Countries.
2