SK Telecom moves to quantify social value created by AI

Partners with SoftBank, social value institute to develop measurement standard

SK Telecom's headquarters in Euljiro, Seoul. [SK Telecom]

SK Telecom is teaming up with Japan's SoftBank and the Social Value Institute to develop a standardized framework for measuring the social benefits generated by AI and information and communications technology. As AI services expand beyond productivity gains into areas such as safety-net reinforcement and digital inclusion, the three organizations aim to build a methodology that can objectively quantify the social value companies create through their business activities.

SK Telecom announced Thursday that it had signed an MOU with SoftBank and the Social Value Institute to strengthen cooperation on social value measurement.

Under the agreement, the three parties plan to jointly develop a standardized measurement methodology applicable to global markets, assessing the social value each organization generates through its AI and ICT products and services.

They will also work to broaden adoption of the social value measurement framework, with plans to conduct case studies, publish joint reports and hold forums in South Korea, Japan and other global markets.

The new MOU builds on a partnership the three organizations launched in April 2024, when they signed their first agreement and began holding social value measurement workshops and case presentations. They also measured and disclosed the social value SoftBank had created, then compared and analyzed the results against SK Telecom's own indicators.

Drawing on those collaborative results, the three parties intend to refine their measurement models further. They plan to draw on each organization's project experience, data and measurement expertise to develop concrete social value indicators for AI- and ICT-based services and build a measurement framework applicable across multiple industries.

Eom Jong-hwan, head of SK Telecom's sustainability management division. [SK Telecom]

"We need a framework that can objectively measure and explain both the social benefits AI creates and the challenges it poses," said Eom Jong-hwan, head of SK Telecom's sustainability management division. "Through this MOU, we will push to develop a standard methodology for measuring social value that is fit for the AI era."

Meanwhile, the Social Value Institute is a nonprofit foundation established by SK Group. It developed SK Group's Double Bottom Line social value measurement framework and supports research and academic activities related to social value.

SK Telecom has measured the social value generated across its business operations since 2018, focusing on AI and ICT services that contribute to strengthening social safety nets — including care for vulnerable groups, disaster response and crime prevention. Since 2021, the company has raised its level of disclosure, publishing the measurement formulas behind individual indicators.

In addition, SK Telecom has formally enshrined social value creation as a core management principle. At its 2020 annual shareholder meeting, the company amended its articles of incorporation to include "social value creation" and "stakeholder happiness," embedding its social responsibilities as an ICT company into its management policy.

rim@heraldcorp.com