SEC Form 6-K filed by KT Corporation

 

 

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

Form 6-K

 

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 OF

THE SECURITIES EXCHANGE ACT OF 1934

For the month of March 2025

Commission File Number 1-14926

 

 

KT Corporation

(Translation of registrant’s name into English)

 

 

90, Buljeong-ro,

Bundang-gu, Seongnam-si,

Gyeonggi-do,

Korea

(Address of principal executive offices)

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

Form 20-F ☑    Form 40-F ☐

 

 

 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

Notice of the 43^rd Annual General Meeting of Shareholders

 

 

•

Date and Time: Monday, March 31st, 2025, at 9:00 a.m. (KST)

 

•

Location: KT Corporation R&D Center, 151 Taebong-ro, Seocho-gu, Seoul, Korea

 

•

Record Date: December 31, 2024

 

1

 

CONTENTS

 

Notice of the Annual General Meeting of Shareholders			3
Matters to be Reported			4
•  Report on Audit Results by the Audit Committee			5
•  Business Report for the 43rd Fiscal Year			6
•  Report on Evaluation Results of Management Performance for the 43rd Fiscal Year			7
•  Report on the Criteria and Methods for Director Compensation			8
•  Report on Operating Status of Internal Control over Financial Reporting			10
•  Report on Treasury Share Ownership and Utilization Plan			11
Matters Requiring Resolution			12
•  Agenda No.  1 Approval of Financial Statements for the 43rd Fiscal Year			13
•  Agenda No.  2 Amendment to the Articles of Incorporation			28
Agenda No.  2-1, Change of Record Date for Quarterly Dividends			28
Agenda No.  2-2, Change of Resolution Method for Issuing Corporate Bonds			29
•  Agenda No. 3 Election of Directors			30
Agenda No. 3-1, Woo-Young Kwak (Outside Director Candidate)			32
Agenda No.  3-2, Seongcheol Kim (Outside Director Candidate)			33
Agenda No.  3-3, Seung Hoon Lee (Outside Director Candidate)			34
Agenda No. 3-4, Yong-Hun Kim (Outside Director Candidate)			35
•  Agenda No.  4 Election of Members of Audit Committee			36
Agenda No. 4-1, Seongcheol Kim (Audit Committee Member Candidate)			37
Agenda No. 4-2, Seung Hoon Lee (Audit Committee Member Candidate)			38
Agenda No. 4-3, Yong-Hun Kim (Audit Committee Member Candidate)			39
•  Agenda No.  5 Approval of Ceiling Amount of Remuneration for Directors			40

 

2

 

Notice of the Annual General Meeting of Shareholders

March 10, 2025

To our shareholders,

KT Corporation will be holding the 43^rd Annual General Meeting of Shareholders (“the Meeting”) on March 31^st, 2025.

At the Meeting, KT Corporation will report on its performance and relevant issues from FY2024, as listed in the “Matters to be Reported” section of this document. Shareholders will be requested to vote on agenda items, including Amendments to the Articles of Incorporation.

Shareholders of KT Corporation’s common stock as of December 31, 2024, will be entitled to vote at the Meeting, with each share corresponding to one vote per agenda item.

We extend our gratitude to our shareholders for your continued support. Your careful consideration of the matters outlined in this notice is greatly appreciated, and we hope the information provided will assist you in making an informed decision.

We invite you to attend the upcoming Annual General Meeting on March 31^st, 2025. We look forward to your participation.

Young-Shub Kim

Chief Executive Officer

 

•

Date and Time: Monday, March 31st, 2025, at 9:00 a.m. (KST)

 

•

Place: Lecture Hall (2F) of KT Corporation R&D Center, 151 Taebong-ro, Seocho-gu, Seoul, Korea

 

•

Record Date: December 31, 2024

 

3

Matters to be Reported

 

 

 

 

4

 

Report on Audit Results by the Audit Committee

To be presented at the meeting

 

5

 

Business Report for the 43^rd Fiscal Year

Pursuant to Article 447-2(Preparation of Business Report) and Article 449 of the Commercial Act (Approval and Public Notice of Financial statements, etc.), KT’s 43^rd annual business report is as follows:

In 2024, KT focused on transforming into an AICT company by innovating capabilities, workforce, and businesses. Through a strategic partnership with Microsoft, KT built a strong foundation in technology and infrastructure to grow B2B AX businesses and to drive AI-driven innovations in CT, media, and network sectors. Additionally, KT is also enhancing the management structure and profitability by streamlining underperforming businesses and adjusting the group portfolio. KT will continue growth by enhancing AX capabilities and business innovations.

In the wireless sector, by the end of 2024, the number of 5G mobile phone subscribers reached 10.4 million, accounting for about 78% of all MNO subscribers. The growth in MVNO subscribers and roaming revenue also contributed to the continued increase in wireless revenue. In the Broadband and IPTV sectors, the demand for high-quality products led to an increase in the sales proportion of GiGA internet and premium IPTV plans.

In the B2B sector, the demand for corporate broadband increased, and the AI/IT business, centered around the AI Contact Center (AICC), grew. KT also continued to streamline low-profit and non-core businesses such as solar energy and digital logistics businesses. In the financial sector, BC Card strengthened growth foundation based on PLCCs and loans, and Kbank continued to grow in key areas such as deposits, loans, and customer numbers. KT Cloud saw continued revenue growth in cloud and data center services due to increased demand for digital transformation, and KT Estate achieved revenue growth through the strong performance of its hotel business. KT StudioGenie solidified its position as a media company by focusing on qualitative growth through selective and concentrated content production.

In 2024, KT recorded standalone operating revenue of KRW 18.6 trillion, operating profit of KRW 346.5 billion, and net profit of KRW 326.9 billion. Also, KT achieved a record high consolidated revenue through balanced growth in B2C and B2B, and optimization of group portfolio, driving structural innovation and profitability improvement. As of the end of 2024, the status of major services subscribers is as follows:

 

Subscribers (Unit: 10K)		Mobile				Broadband				IPTV				PSTN				VoIP
December 31, 2024			2,613				996				945				826				321
December 31, 2023			2,490				983				941				882				321

 

6

 

Report on Evaluation Results of Management Performance for the 43^rd Fiscal Year

Pursuant to Article 34 (Execution of Employment Contract with the Representative Director), evaluations results for Representative Directors performance shall be reported at the Meeting as described below.

The Evaluation and Compensation Committee has reviewed the performance of management for FY2024. The following table summarizes the annual KPIs and evaluation results of the Representative Director’s short-term performance.

 

Item		Annual KPI		Weight				Score
Quantitative KPI		- Service revenue of KT Corporation - Operating profit of KT Corporation			65	%			64.90	%
Qualitative KPI		- AX competency enhancement - Innovation of business for growth - Innovation of infrastructure for sustainable management			35	%			35.00	%
Total					100	%			99.90	%

 

7

 

Report on the Criteria and Methods for Director Compensation

Pursuant to Article 31 (Remuneration and Severance Allowance for Directors) of the KT’s Articles of Incorporation, the criteria in place to determine the remuneration for executive directors and the method of payment are reported as follows:

 

•

Summary of Director Compensation Program

The Company’s inside director compensation program is designed to reward management for both short-term and long-term performances. The Company believes it is critical to maintain a well-balanced incentive program that encourages the management not only to achieve short-term performance but also to strive for the Company’s long-term value enhancement. The Evaluation and Compensation Committee sets annual goals and conducts evaluations of the management annually. The Committee is composed entirely of outside directors in order to maintain objectivity and fairness of the program.

The compensation program for outside directors consists of cash and annual stock grants which are subject to a one-year lock-up period beginning at the start of the year it is awarded. The stock grant is not subject to any performance criteria and has been introduced to ensure that outside directors have “skin in the game” to align their interests with all shareholders.

 

•

Components of Inside Director Compensation

The remuneration for inside directors consists of annual salary, short-term performance incentives, long-term performance incentives, and severance pay.

The annual salary is further separated into two major factors — base salary and responsibility allowance. Each are paid monthly in 1/12 increments.

Short-term performance incentives are paid in cash based on business performance of the fiscal year, within the limit approved by the AGM. The specific payment scheme is as follows:

 

•

Representative Director: 0~180% of base salary / inside director: 0~140% of base salary

Long-term performance incentives are paid in stocks with a lock-up period of three years, based on the achievement of long-term performance indicators (TSR + Group EBITDA + Group revenue), within the limit approved by the AGM. The specific payment scheme is as follows:

 

•

Representative Director: 0~140% of base salary / inside director: 0~95% of base salary

Severance payment is calculated using the following formula:

 

•

Representative Director : (Average monthly salary) x (number of years in service) x (5)

 

•

Other Inside Directors : (Average monthly salary) x (number of years in service) x (3)

 

8

•

Criteria for Evaluation

The Company’s performance evaluation process begins with the setting of annual goals by the Evaluation and Compensation Committee. Annual goals are established in alignment with the Company’s overall operational and financial goals with an emphasis on improving shareholder value.

Short-term performance is comprised of quantitative and qualitative factors. Typically, quantitative goals are related to financial and operational performances, whereas qualitative goals are focused on achieving operational and strategic goals to further enhance long-term competitiveness. Please refer to “Report on Evaluation Results of Management Performance for the 43^rd Fiscal Year” for results of the Representative Director’s short-term performance for FY2024.

Long-term performance incentives are provided to reward management’s contribution to long-term financial and operational competitiveness. Incentives are offered in accordance with TSR (Total Shareholder Return), Group EBITDA and Group revenue; each factor has a weight of 20%, 40% and 40% respectively. The following illustrates the formula for TSR calculation:

 

•

TSR : Share Price Return + Shareholders Return (Dividend and Share Retirement)

 

•

TSR Result : 100% + {KT’s TSR – (Domestic Telco’s TSR x 80% + KOSPI TSR x 20%)}

 

•

Summary of Director Compensation

1) Compensation Paid to Directors (KRW millions)

 

Year		Inside Directors								Outside Directors								Total
		Total				Average				Total				Average
2022			2,994				1,497				786				98				3,780
2023			4,209				2,104				675				84				4,884
2024			1,651				826				782				98				2,433

 

*	The amount above represents actual cash payments executed each fiscal year.

 

*	Severance pay for directors is provided separately according to the executive severance pay regulations.

 

*	From FY2022 to FY2024, compensation was given to two inside directors and eight outside directors.

 

2)	Comparison between total compensation paid and ceiling amounts on remuneration approved at the Annual General Meeting of Shareholders (KRW millions)

 

Year		Total Compensation(A)				Ceiling Amount on Remuneration(B)*				Payment Ratio(A/B)
2022			3,780				5,800				65.2	%
2023			4,884				5,800				84.2	%
2024			2,433				5,800				41.9	%

 

*	Maximum amounts of remuneration allowed per accrual basis

*	‘Total Compensation’ of 2024, which includes short-term and long-term performance incentives based on 2023 performance, was lower than usual due to the replacement of directors during 2023.

 

9

 

Report on Operating Status of Internal Control over Financial Reporting

To be presented at the meeting

 

10

 

Report on Treasury Share Ownership and Utilization Plan

Pursuant to Article 48-2(Treasury Stock Report) of KT’s Articles of Incorporation, KT shall report the purpose of treasury share ownership and utilization plan at the annual general shareholder’s meetings.

Treasury Share Ownership

During FY2024, the Company acquired 695,775 treasury shares and disposed or cancelled 5,954,374 treasury shares. As of December 31, 2024, the Company holds 6,188,739 treasury shares.

Treasury Share Utilization Plan

KT plans to utilize treasury shares as employee performance incentives, including long-term incentives for outside directors and executive officers, and as incentives to attract skilled talent. Treasury shares will also be used to enhance corporate and shareholder value through cancellation or strategic partnerships/investments for strengthening AICT capabilities.

Concrete utilization plans will be disclosed after the Board of Directors’ resolution.

 

11

 

Matters Requiring Resolution

General Information for Voting

 

•

Number and Classification of Voting Shares

The record date for exercising voting rights at the AGM is December 31, 2024. As of this date, the total number of KT shares issued was 252,021,685. The number of common shares, excluding treasury shares, entitled to exercise voting rights is 245,832,946 shares.

 

•

Method of Resolution

Pursuant to the provisions of the Commercial Act, Agenda No. 1, 3, 4, 5 shall be passed by the majority of votes cast by shareholders present at the meeting and at least one-fourth of total shares entitled to vote. Agenda No. 2 shall be passed by at least two-thirds of votes cast by shareholders present at the meeting and at least one-third of total shares entitled to vote.

 

 

 

 

12

 

Agenda No. 1

Approval of Financial Statements for the 43^rd Fiscal Year

Pursuant to Article 449 of the Commercial Act (Approval and Public Notice of Financial Statements), approval of the financial statements for the 43^rd fiscal year is hereby requested.

Background Information

The consolidated and separate financial statements included below have not yet been audited and remain subject change following the audit process of independent auditors. The audit report for the 43^rd fiscal year based on K-IFRS standards, including audited financial statements and the respective accompanying notes, will be uploaded on the Company’s website(https://corp.kt.com/eng/html/investors/financial/audit_01.html).

From fiscal years 2021 to 2023, the Company received an unqualified opinion from the Company’s independent auditors.

 

13

KT Corporation and Its Subsidiaries

Consolidated Statements of Financial Position

Years Ended December 31, 2024 and 2023

 

 

(In millions of Korean won)		December 31, 2024				December 31, 2023
Assets
Current assets
Cash and cash equivalents		₩	3,716,680			₩	2,879,554
Trade and other receivables, net			6,147,456				7,170,289
Other financial assets			1,344,248				1,440,200
Current tax assets			1,213				3,299
Inventories, net			940,209				912,262
Other current assets			2,102,131				2,112,553
Total current assets			14,251,937				14,518,157
Non-current assets
Trade and other receivables, net			1,540,727				1,404,168
Other financial assets			2,759,170				2,724,761
Property and equipment, net			14,825,814				14,872,079
Right-of-use assets			1,212,770				1,304,963
Investment properties, net			2,299,616				2,198,135
Intangible assets, net			1,862,740				2,533,861
Investments in associates and joint ventures			1,562,232				1,556,889
Deferred income tax assets			671,609				608,924
Net defined benefit assets			49,351				160,748
Other non-current assets			843,991				827,297
Total non-current assets			27,628,020				28,191,825
Total assets		₩	41,879,957			₩	42,709,982

 

14

KT Corporation and Subsidiaries

Consolidated Statements of Financial Position

Years Ended December 31, 2024 and 2023

 

 

(in millions of Korean won)		December 31, 2024				December 31, 2023
Liabilities
Current liabilities
Trade and other payables		₩	7,394,791			₩	8,054,922
Borrowings			3,904,752				3,058,564
Other financial liabilities			351,632				322,099
Current income tax liabilities			123,145				236,463
Other provisions			112,530				115,209
Deferred income			62,247				51,537
Other current liabilities			1,925,637				1,308,615
Total current liabilities			13,874,734				13,147,409
Non-current liabilities
Trade and other payables			578,409				819,558
Borrowings			6,615,938				7,159,601
Other financial liabilities			722,517				753,739
Net defined benefit liabilities			128,457				63,616
Other provisions			111,877				107,014
Deferred income			148,960				153,563
Deferred income tax liabilities			919,996				994,330
Other non-current liabilities			782,520				950,015
Total non-current liabilities			10,008,674				11,001,436
Total liabilities			23,883,408				24,148,845
Equity attribute to owners of the Controlling Company
Share capital			1,564,499				1,564,499
Share premium			1,440,258				1,440,258
Retained earnings			13,779,776				14,494,430
Accumulated other comprehensive income			63,729				52,407
Other components of equity			(637,560	)			(802,418	)
			16,210,702				16,749,176
Non-controlling interest			1,785,847				1,811,961
Total equity			17,996,549				18,561,137
Total liabilities and equity		₩	41,879,957			₩	42,709,982

 

15

KT Corporation and Its Subsidiaries

Consolidated Statements of Profit or Loss

Years Ended December 31, 2024 and 2023

 

 

(In millions of Korean won, except per share amounts)		2024				2023
Operating Revenue		₩	26,431,204			₩	26,376,273
Operating Expenses			25,621,733				24,726,499
Operating Profit			809,471				1,649,774
Other income			344,829				308,044
Other expenses			501,055				507,904
Finance income			917,650				486,277
Finance costs			994,781				568,682
Share of net profits (losses) of associates and joint ventures			8,587				(43,424	)
Profit before Income Tax			584,701				1,324,085
Income tax expense			167,607				335,367
Profit for the Year		₩	417,094			₩	988,718
Profit for the Year Attributable to:
Owners of the Parent Company		₩	470,286			₩	1,009,861
Non-controlling interests			(53,192	)			(21,143	)
Earnings per share attributable to the equity holders of the Parent Company during the year (in Korean won):
Basic earnings per share		₩	1,908			₩	4,043
Diluted earnings per share			1,906				4,038

 

16

KT Corporation and Its Subsidiaries

Consolidated Statements of Comprehensive Income

Years Ended December 31, 2024 and 2023

 

 

(in millions of Korean won)		2024				2023
Profit for the year		₩	417,094			₩	988,718
Other comprehensive income (loss)
Items that will not be reclassified to profit or loss:
Remeasurements of the net defined benefit liabilities			(117,057	)			(137,465	)
Share of remeasurement of the net defined benefit liabilities of associates and joint ventures			(490	)			(105	)
Valuation gains on equity instruments at fair value through other comprehensive income			(8,600	)			121,271
Items that are or may be subsequently reclassified to profit or loss:
Gain (Loss) on valuation of debt instruments at fair value through other comprehensive income			998				534
Valuation gains (losses) on cash flow hedges			272,802				15,329
Other comprehensive income from cash flow hedges reclassified to profit or loss			(285,954	)			(37,942	)
Share of other comprehensive income of associates and joint ventures			4,011				21,595
Exchange differences on translation of foreign operations			44,095				24,230
Other comprehensive income (loss) for the period, net of tax			(90,195	)			7,447
Total comprehensive income for the year		₩	326,899			₩	996,165
Total comprehensive income for the year attributable to:
Owners of the Parent Company		₩	354,279			₩	1,013,535
Non-controlling interests			(27,380	)			(17,370	)

 

17

KT Corporation and Subsidiaries

Consolidated Statements of Changes in Equity

Years Ended December 31, 2024 and 2023

 

 

		Attributable to owners of the Controlling Company
(In millions of Korean won)		Share capital				Share premium				Retained earnings				Accumulated other comprehensive income				Other components of equity				Total				Non-controlling interest				Total equity
Balance as of January 1, 2023			₩1,564,499				₩1,440,258				₩14,257,343			₩	(77,776	)		₩	(572,152	)			₩16,612,172				₩1,802,551				₩18,414,723
Comprehensive income
Profit for the year			—				—				1,009,861				—				—				1,009,861				(21,143	)			988,718
Remeasurements of net defined benefit liabilities			—				—				(126,613	)			—				—				(126,613	)			(10,852	)			(137,465	)
Share of remeasurement of the net defined benefit liabilities of associates and joint ventures			—				—				(118	)			—				—				(118	)			13				(105	)
Share of other comprehensive income of associates and joint ventures			—				—				—				15,775				—				15,775				5,820				21,595
Valuation gains (losses) on cash flow hedges			—				—				—				(22,252	)			—				(22,252	)			(361	)			(22,613	)
Valuation gains on financial instruments at fair value through other comprehensive income			—				—				222				126,028				—				126,250				(4,445	)			121,805
Exchange differences on translation of foreign operations			—				—				—				10,632				—				10,632				13,598				24,230
Total comprehensive income for the year			—				—				883,352				130,183				—				1,013,535				(17,370	)			996,165
Transactions with owners
Dividends paid by the Parent Company			—				—				(501,844	)			—				—				(501,844	)			—				(501,844	)
Dividends paid to non-controlling interest of subsidiaries			—				—				—				—				—				—				(24,964	)			(24,964	)
Change in Consolidation Scope			—				—				—				—				—				—				(79,134	)			(79,134	)
Change in ownership interests in subsidiaries			—				—				—				—				216,841				216,841				128,526				345,367
Appropriation of retained earnings related to loss on disposal of treasury stock			—				—				(44,421	)			—				44,421				—				—				—
Acquisition of treasury stock			—				—				—				—				(300,243	)			(300,243	)			—				(300,243	)
Disposal of treasury stock			—				—				—				—				4,463				4,463				—				4,463
Retirement of treasury stocks			—				—				(100,000	)			—				100,000				—				—				—
Recognition of obligation to purchase own equity instruments			—				—				—				—				(298,196	)			(298,196	)			—				(298,196	)
Others																			2,448				2,448				2,352				4,800
Subtotal			—				—				(646,265	)			—				(230,266	)			(876,531	)			26,780				(849,751	)
Balance as of December 31, 2023			₩1,564,499				₩1,440,258				₩14,494,430			₩	52,407			₩	(802,418	)			₩16,749,176				₩1,811,961				₩18,561,137

 

18

KT Corporation and Subsidiaries

Consolidated Statements of Changes in Equity

Years Ended December 31, 2024 and 2023

 

 

		Attributable to owners of the Controlling Company
(In millions of Korean won)		Share capital				Share premium				Retained earnings				Accumulated other comprehensive income				Other components of equity				Total				Non-controlling interest				Total equity
Balance as of January 1, 2024			₩1,564,499				₩1,440,258				₩14,494,430			₩	52,407			₩	(802,418	)			₩16,749,176				₩1,811,961				₩18,561,137
Comprehensive income
Profit for the year			—				—				470,286				—				—				470,286				(53,192	)			417,094
Remeasurements of net defined benefit liabilities			—				—				(113,423	)			—				—				(113,423	)			(3,634	)			(117,057	)
Share of remeasurement of the net defined benefit liabilities of associates and joint ventures			—				—				(482	)			—				—				(482	)			(8	)			(490	)
Share of other comprehensive income of associates and joint ventures			—				—				—				3,723				—				3,723				288				4,011
Valuation gains (losses) on cash flow hedges			—				—				—				(12,817	)			—				(12,817	)			(335	)			(13,152	)
Valuation gains on financial instruments at fair value through other comprehensive income			—				—				(13,424	)			6,917				—				(6,507	)			(1,095	)			(7,602	)
Exchange differences on translation of foreign operations			—				—				—				13,499				—				13,499				30,596				44,095
Total comprehensive income for the year			—				—				342,957				11,322				—				354,279				(27,380	)			326,899
Transactions with owners
Dividends paid by the Parent Company			—				—				(482,970	)			—				—				(482,970	)			—				(482,970	)
Interim Dividends paid by the Parent Company			—				—				(368,685	)			—				—				(368,685	)			—				(368,685	)
Dividends paid to non-controlling interest of subsidiaries			—				—				—				—				—				—				(20,578	)			(20,578	)
Change in Consolidation Scope			—				—				—				—				—				—				20				20
Change in ownership interests in subsidiaries			—				—				—				—				(20,367	)			(20,367	)			22,181				1,814
Acquisition of treasury stock			—				—				—				—				(27,100	)			(27,100	)			—				(27,100	)
Disposal of treasury stock			—				—				—				—				4,009				4,009				—				4,009
Retirement of treasury stocks			—				—				(205,956	)			—				205,956				—				—				—
Others																			2,360				2,360				(357	)			2,003
Subtotal			—				—				(1,057,611	)			—				164,858				(892,753	)			1,266				(891,487	)
Balance as of December 31, 2024			₩1,564,499				₩1,440,258				₩13,779,776			₩	63,729			₩	(637,560	)			₩16,210,702				₩1,785,847				₩17,996,549

 

19

KT Corporation and Subsidiaries

Consolidated Statements of Cash Flows

Years Ended December 31, 2024 and 2023

 

 

(In millions of Korean won)		2024				2023
Cash flows from operating activities
Cash generated from operations		₩	5,349,248			₩	5,747,195
Interest paid			(394,162	)			(361,741	)
Interest received			385,672				360,614
Dividends received			75,613				60,987
Income tax paid			(350,575	)			(303,766	)
Net cash inflow from operating activities			5,065,796				5,503,289
Cash flows from investing activities
Collection of loans			34,510				53,885
Disposals of financial assets at fair value through profit or loss			122,497				90,487
Disposal of financial assets at amortized cost			1,633,074				1,543,663
Disposals of financial assets at fair value through other comprehensive income			37,134				306
Disposals of investments in associates and joint ventures			21,981				6,890
Disposals of property, equipment and investment properties			103,295				178,063
Disposals of intangible assets			6,955				20,088
Disposals of right-of-use assets			186				97
Disposals of derivatives			—				—
Increase in cash due to consolidation scope change			9,847				46,642
Loans granted			(30,099	)			(37,771	)
Acquisitions of financial assets at fair value through profit or loss			(172,476	)			(220,989	)
Acquisitions of financial assets at amortized cost			(1,187,651	)			(1,875,525	)
Acquisitions of financial assets at fair value through other comprehensive income			(400	)			(10,267	)
Acquisitions of investments in associates and joint ventures			(49,399	)			(106,389	)
Acquisitions of property and equipment and investment properties			(2,909,481	)			(3,692,972	)
Acquisitions of intangible assets			(438,653	)			(478,685	)
Acquisitions of right-of-use assets			(16,447	)			(1,065	)
Decrease in cash due to consolidation scope change			(10,310	)			(51,561	)
Net cash outflow from investing activities			(2,845,437	)			(4,535,103	)

 

20

KT Corporation and Subsidiaries

Consolidated Statements of Cash Flows

Years Ended December 31, 2024 and 2023

 

 

(In millions of Korean won)		2024				2023
Cash flows from financing activities
Proceeds from borrowings			4,597,704				5,381,231
Cash inflow under derivatives contracts			81,443				48,183
Cash inflow from transactions with non-controlling shareholders			812				632,776
Cash inflow from other financing activities			10,442				2,082
Repayments of borrowings			(4,732,931	)			(5,275,113	)
Dividends paid			(872,350	)			(526,826	)
Decrease in lease liabilities			(414,172	)			(407,051	)
Cash outflow under derivatives contracts			(855	)			—
Acquisition of treasury stock			(27,100	)			(300,086	)
Cash outflow from transactions with non-controlling shareholders			(32,124	)			(7,988	)
Cash outflow from other financing activities			(922	)			—
Net cash inflow (outflow) from financing activities			(1,390,053	)			(452,792	)
Effect of exchange rate change on cash and cash equivalents			6,820				503
Net increase (decrease) in cash and cash equivalents			837,126				515,897
Cash and cash equivalents
Beginning of the year			2,879,554				2,449,062
End of the year		₩	3,716,680			₩	2,964,959

 

21

KT CORPORATION

Separate Statements of Financial Position

December 31, 2024 and 2023

 

 

(in millions of Korean won)		December 31, 2024				December 31, 2023
Assets
Current assets
Cash and cash equivalents		₩	1,540,570			₩	1,242,005
Trade and other receivables, net			2,904,846				3,190,269
Other financial assets			262,547				279,451
Inventories, net			224,678				368,117
Other current assets			1,959,960				2,008,723
Total current assets			6,892,601				7,088,565
Non-current assets
Trade and other receivables, net			309,106				370,717
Other financial assets			2,175,177				2,134,324
Property and equipment, net			11,477,680				11,492,776
Right-of-use assets			896,299				976,625
Investment properties, net			1,114,379				1,191,592
Intangible assets, net			1,104,680				1,487,848
Investments in subsidiaries, associates and joint ventures			4,831,186				4,796,606
Net defined benefit assets			—				60,590
Other non-current assets			727,772				709,276
Total non-current assets			22,636,279				23,220,354
Total assets		₩	29,528,880			₩	30,308,919

 

22

KT Corporation

Separate Statements of Financial Position

December 31, 2024 and 2023

 

 

(in millions of Korean won)		December 31, 2024				December 31, 2023
Liabilities
Current liabilities
Trade and other payables		₩	4,326,079			₩	4,232,377
Borrowings			2,434,204				1,725,234
Other financial liabilities			—				660
Current income tax liabilities			32,057				148,136
Provisions			90,413				91,861
Deferred income			52,257				39,618
Other current liabilities			698,209				719,605
Total current liabilities			7,633,219				6,957,491
Non-current liabilities
Trade and other payables			479,416				739,766
Borrowings			5,437,715				5,834,699
Other financial liabilities			28				23,819
Net defined benefit liabilities			51,082				—
Provisions			96,059				90,493
Deferred income			136,382				145,334
Deferred income tax liabilities			728,863				796,087
Other non-current liabilities			545,976				677,691
Total non-current liabilities			7,475,521				8,307,889
Total liabilities			15,108,740				15,265,380
Equity
Share capital			1,564,499				1,564,499
Share premium			1,440,258				1,440,258
Retained earnings			11,717,929				12,544,425
Accumulated other comprehensive income			86,478				64,229
Other components of equity			(389,024	)			(569,872	)
Total equity			14,420,140				15,043,539
Total liabilities and equity		₩	29,528,880			₩	30,308,919

 

23

KT CORPORATION

Separate Statements of Profit or Loss

Years Ended December 31, 2024 and 2023

 

 

(in millions of Korean won, except per share amounts)		2024				2023
Operating revenue		₩	18,579,678			₩	18,371,437
Operating expenses			18,233,189				17,186,045
Operating profit			346,489				1,185,392
Other income			349,026				327,527
Other expenses			262,705				319,586
Finance income			757,321				381,151
Finance costs			786,334				419,210
Profit before income tax			403,797				1,155,274
Income tax expense			76,881				221,937
Profit for the year		₩	326,916			₩	933,337
Earnings per share
Basic earnings per share		₩	1,329			₩	3,741
Diluted earnings per share			1,329				3,739

 

24

KT CORPORATION

Separate Statements of Comprehensive Income

Years Ended December 31, 2024 and 2023

 

 

(in millions of Korean won)		2024				2023
Profit for the year		₩	326,916			₩	933,337
Other comprehensive income (loss)
Items that will not be reclassified to profit or loss:
Remeasurements of net defined benefit liabilities			(82,380	)			(90,272	)
Gain on valuation of equity instruments at fair value through other comprehensive income			19,611				158,245
Items that may be subsequently reclassified to profit or loss:
Gain (loss) on valuation of debt instruments at fair value through other comprehensive income			869				(26	)
Valuation gain on cash flow hedges			266,775				16,030
Other comprehensive loss from cash flow hedges reclassified to profit or loss			(278,427	)			(37,126	)
Total other comprehensive income (loss)		₩	(73,552	)		₩	46,851
Total comprehensive income for the year		₩	253,364			₩	980,188

 

25

KT CORPORATION

Separate Statements of Changes in Equity

Years Ended December 31, 2024 and 2023

 

 

(in millions of Korean won)		Share capital				Share premium				Retained earnings				Accumulated other comprehensive income				Other components of equity				Total
Balance at January 1, 2023		₩	1,564,499			₩	1,440,258			₩	12,347,403			₩	(72,672	)		₩	(421,408	)		₩	14,858,080
Comprehensive income
Profit for the year			—				—				933,337				—				—				933,337
Loss on valuation of financial assets at fair value through other comprehensive income			—				—				222				157,997				—				158,219
Remeasurements of net defined benefit liabilities			—				—				(90,272	)			—				—				(90,272)
Valuation gain on cash flow hedge			—				—				—				(21,096	)			—				(21,096)
Total comprehensive income for the year			—				—				843,287				136,901				—				980,188
Transactions with equity holders																			—				—
Dividends paid			—				—				(501,844	)			—				—				(501,844)
Appropriation of retained earnings related to loss on disposal of treasury stock			—				—				(44,421	)			—				44,421				—
Acquisition of treasury stock			—				—				—				—				(300,243	)			(300,243	)
Disposal of treasury stock			—				—				—				—				4,463				4,463
Retirement of treasury stock			—				—				(100,000	)			—				100,000				—
Others			—				—				—				—				2,895				2,895
Balance at December 31, 2023		₩	1,564,499			₩	1,440,258			₩	12,544,425			₩	64,229			₩	(569,872	)		₩	15,043,539
Balance at January 1, 2024		₩	1,564,499			₩	1,440,258			₩	12,544,425			₩	64,229			₩	(569,872	)		₩	15,043,539
Comprehensive income
Profit for the year			—				—				326,916				—				—				326,916
Gain on valuation of financial assets at fair value through other comprehensive income			—				—				(13,421	)			33,901				—				20,480
Remeasurements of net defined benefit liabilities			—				—				(82,380	)			—				—				(82,380	)
Valuation loss on cash flow hedge			—				—				—				(11,652	)			—				(11,652	)
Total comprehensive income for the year			—				—				231,115				22,249				—				253,364
Transactions with equity holders																			—
Dividends paid			—				—				(482,970	)			—				—				(482,970	)
Interim Dividends paid			—				—				(368,685	)			—				—				(368,685	)
Acquisition of treasury stock			—				—				—				—				(27,100	)			(27,100	)
Disposal of treasury stock			—				—				—				—				4,009				4,009
Retirement of treasury stock			—				—				(205,956	)			—				205,956				—
Others			—				—				—				—				(2,017	)			(2,017	)
Balance at December 31, 2024		₩	1,564,499			₩	1,440,258			₩	11,717,929			₩	86,478			₩	(389,024	)		₩	14,420,140

 

26