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Investing.com - Goldman Sachs downgraded SK Telecom (NYSE:SKM) from Neutral to Sell and lowered its price target to KRW42,000.00 from KRW54,000.00 following the company’s recent data breach incident.
The Ministry of Science and ICT (MSIT) concluded its investigation on July 4, finding SK Telecom liable for the data breach that first surfaced in April. The investigation determined that exemption of early termination fees was justified, prompting SK Telecom to announce fee exemptions for cancellations made between April 19 and July 14.
SK Telecom also launched multiple consumer benefits worth approximately W500 billion in response to the incident. The company has revised its 2025 revenue guidance downward by 4.5%, from W17.8 trillion to W17 trillion.
Goldman Sachs expressed concern that the level of countermeasures suggests real risk of brand deterioration, which may create a long-term drag on market share and threaten SK Telecom’s position as the market leader.
The investment bank also noted potential risk to SK Telecom’s 2025 cash dividend, considering the company’s annual dividend payout is approximately W750 billion, while the potential financial impact from the breach could amount to W700 billion or more, including possible government penalties.
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