1、M FoundationInvestor Presentation|Asia PacificS.Korea Telecom Services/IT Services and Technology:Value-up+AI optionalityMorgan Stanley&Co.International plc,Seoul Branch+Seyon ParkEquity Analyst Seyon.P +82 2 399-4936 S.Korea Telecoms,Media&InternetAsia PacificIndustry ViewIn-Line Morgan Stanley doe

2、s and seeks to do business with companies covered in Morgan Stanley Research.As a result,investors should be aware that the firm may have a conflict of interest that could affect the objectivity of Morgan Stanley Research.Investors should consider Morgan Stanley Research as only a single factor in m

3、aking their investment decision.For analyst certification and other important disclosures,refer to the Disclosure Section,located at the end of this report.+=Analysts employed by non-U.S.affiliates are not registered with FINRA,may not be associated persons of the member and may not be subject to FI

4、NRA restrictions on communications with a subject company,public appearances and trading securities held by a research analyst account.September 22,2025 06:38 AM GMTM Foundation2Telecom ServicesCompetition risk post SKTs network hack is a key reason we shift to a more cautious stance near term We se

5、e risk of SKT coming out more aggressive on handset subsidies to recoup some of its lost wireless subs.Capex on clear downtrend,driving higher free cash flows but at the same time we are seeing emerging demand for AI datacenters.Operators are either investing in AI,raising shareholder returns,or del

6、everaging.Stock picks:KT is our preferred stock KT(OW):We see KT relatively better positioned to withstand higher competition on wireless,given higher share of revenues from fixed line and enterprise.TSR at over 6%,including W1tn buyback over the next four years,also helps.SKT(EW):We see mounting pr