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 April 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.

 

ANNUAL REPORT OF KT CORPORATION

(From January 1, 2024 to December 31, 2024)

(Translation of the Annual Report filed in Korean with the Financial Supervisory Service of Korea)

Table of Contents

 

ANNUAL REPORT OF KT CORPORATION			1
I. Corporate Overview			2
II. Details of Businesses			7
III. Financial Information			32
IV. Auditors’ Opinion			37
V. Management			41
VI. Shareholder Information			66
VII. Directors, Senior Management and Employees			67
VIII. Affiliated Companies			84

Independent auditors’ reports on both Consolidated and Separate financial statements (K-IFRS) were filed to the SEC on March 13, 2025 (File Number 001-14926 / Film Number 25733702).

THIS IS A SUMMARY OF THE ANNUAL REPORT ORIGINALLY PREPARED IN KOREAN WHICH IS IN SUCH FORM AS REQUIRED BY THE KOREAN FINANCIAL SERVICES COMMISSION.

IN THE TRANSLATION PROCESS, SOME PARTS OF THE REPORT WERE REFORMATTED, REARRANGED OR SUMMARIZED FOR THE CONVENIENCE OF READERS.

UNLESS EXPRESSLY STATED OTHERWISE, ALL FINANCIAL INFORMATION CONTAINED HEREIN IS PRESENTED ON A CONSOLIDATED BASIS IN ACCORDANCE WITH THE INTERNATIONAL FINANCIAL REPORTING STANDARDS ADOPTED FOR USE IN KOREA (“K-IFRS”) WHICH DIFFER IN CERTAIN RESPECTS FROM GENERALLY ACCEPTED ACCOUNTING PRINCIPLES IN CERTAIN OTHER COUNTRIES, INCLUDING THE UNITED STATES. THE COMPANY HAS MADE NO ATTEMPT TO IDENTIFY OR QUANTIFY THE IMPACT OF THESE DIFFERENCES.

 

1

I. Corporate Overview

1. Overview

A. Name of the Company : KT Corporation

B. Overview of Subsidiaries (As of December 31, 2024) : 83 Companies, excluding KT.

- Increase/Decrease in number of Subsidiaries

(Unit : Companies)

 

Classification		Subsidiaries																The number of consolidated subsidiaries
		year-beginning				Increase				Decrease				year-end
Listed			9				0				0				9				9
Other			75				4				5				74				20
Total			84				4				5				83				29

※ Significant changes in Subsidiaries

 

Classification		Name of Subsidiary		Causes for Changes
Newly included Subsidiaries		BC Strategic Investment Partnership No. 2		Established in Q2 2024
		K-Logistics Hwaseong Co., Ltd.		Established in Q3 2024
		KT Net Core Co., Ltd.		Established in Q4 2024
		KT P&M Co., Ltd.		Established in Q4 2024
Excluded from Subsidiaries		Lolab Co., Ltd.		Disposed in Q2 2024
		Pocheon Jeonggyori Development Co., Ltd.		Liquidated in Q2 2024
		KT Healthcare Vina Company Limited		Disposed in Q2 2024
		Juice Co., Ltd.		Disposed in Q4 2024
		KT NexR Co., Ltd.		Merged with KT Co., Ltd. in Q4 2024

C. Date of Incorporation: December 10, 1981

D. Location of Headquarters: 90 Bulljeong-ro, Bundang-gu, Seongnam-city, Gyeonggi-do 13606, Korea

E. Significant changes in management and auditor

 

2

Date of change		Types of shareholders’ meetings		Appointment				End of term or dismissal
				New appointment		Reappointment
August 30, 2023		Extraordinary Shareholders’ Meeting		(Representative Director) Young Shub Kim (Inside Director) Chang-Seok Seo		—		—
June 30, 2023		Extraordinary Shareholders’ Meeting		(Outside Director) YangHee Choi Woo-Young Kwak Jong Soo Yoon Yeong Kyun Ahn Seung Hoon Lee Seongcheol Kim Seung Ah Theresa Cho		—		—
March 31, 2023		Annual General Shareholders’ Meeting		—		—		(Outside Director) Hyunmyung Pyo Chung-gu Kang Eunjeong Yeo *
March 28, 2023		—		—		—		(Representative Director) Hyeonmo Ku (Outside Director) Huiyeol Yu (resigned) Dae-yu Kim (resigned)
March 27, 2023		—		—		—		(Inside Director) Kyoung-Lim Yun (resigned)
March 06, 2023		—		—		—		(Outside Director) Benjamin Hong (resigned)
January 12, 2023		—		—		—		(Outside Director) Kang-chul Lee (resigned)

 

*

At the general meeting of shareholders held on March 31, 2023, the terms of office for outside directors, Hyeon-myeong Pyo, Chung-gu Kang, and Eunjeong Yeo, expired. However, in accordance with Article 386, Paragraph 1 of the Commercial Act, new outside directors were appointed at the 2023 extraordinary general meeting of shareholders, and the outgoing directors maintained their rights and duties as outside directors until the new directors’ rights and duties commenced.

2. Total Number of Shares and Related Matters

A. Status of Capital Increase/Decrease (As of December 31, 2024) (Unit: KRW million, Shares)

There has been no change in capital stock for the past 5 business years.

 

Type of Stock		Category		43rd FY (End of 2024)				42nd FY (End of 2023)				41st FY (End of 2022)
Common Stock		Current Number of Issued Shares			252,021,685				257,860,760				261,111,808
		Par value (KRW)			5,000				5,000				5,000
		Capital Stock			1,564,499				1,564,499				1,564,499

 

3

B. Total Number of Shares (As of December 31, 2024) (Unit: Shares)

 

Category				Type of Shares								Total
				Common shares				Preferred shares
I. Total Number of Authorized Shares					1,000,000,000				—				1,000,000,000
II. Total Number of Issued Shares					312,899,767				—				312,899,767
III. Total Number of Reduced Shares					60,878,082				—				60,878,082
Details of Reduced Shares		1. Reduction of Capital			—				—				—
		2. Share Cancellation			60,878,082				—				60,878,082
		3. Redemption of Redeemable Shares			—				—				—
		4. Other			—				—				—
IV. Current Number of Issued Shares (II – III)					252,021,685				—				257,860,760
V. Number of Treasury Shares					6,188,739				—				6,188,739
VI. Current Number of Issued and Outstanding Shares					245,832,946				—				245,832,946
VII. Treasury Share Ownership (%)					2.46								2.46

C. Acquisition and Disposal of Treasury Shares (As of December 31, 2024) (Unit: Shares)

 

				Type of Shares		Beginning of Term				Change												End of Term
Method of Acquisition										Acquired (-)				Disposed (-)				Cancelled (-)
Direct Acquisition		On the Market		Common Shares			—				695,775				—				695,775				—
		OTC Transaction		Common Shares			11,447,338				—				115,299				5,143,300				6,188,739
Total				Common Shares			11,447,338				695,775				115,299				5,839,075				6,188,739

 

4

3. Articles of Incorporation

 

Date of amendment		The name of Shareholders’ Meeting		Significant Changes		Causes for the Changes
March 28, 2024		The 42nd Annual General Meeting of Shareholders		Introduction of quarterly dividends (Article 49, Article 49-2)   Change of dividend record date (Article 49)   Clarification of terms (Article 34)		Introduction of quarterly dividends and deletion of provisions related to interim dividends due to the introduction of quarterly dividends   Establishment of grounds to change the dividend record date, which is set as the end of the term in the articles of incorporation, to another date (after the dividend amount is confirmed)   Clarification of the Representative Director’s term management plan to the management plan within the term
June 30, 2023		The First Extraordinary Shareholders’ Meeting in 2023		Reduction in the number of internal directors (Articles 24, 29)   Abolition of multiple Representative Directors (Articles 18, 25, 29)   Upward revision of the resolution criteria for the appointment of Representative Directors (Article 25)   Amendments to the provisions relating to the terms of directors (Article 26 (deleted), Article 27, Article 28 (deleted))   Qualifications for Representative Directors (Article 25)   Establishment of a Governance Structure Committee (Article 41-2)   Establishment of a Nomination Committee for director candidates (Articles 25, 32, 33, 41, 42)   Composition of the Nomination Committee for director candidates (Article 42)		Reduction in the number of internal directors to strengthen the independence of the board   Abolition of the multiple Representative Directors system to strengthen the accountability of the Representative Director   Increase in the approval criteria for the appointment of the Representative Director to ensure the selection of the most qualified candidate with the support of majority shareholders   Elimination of staggered terms and related regulations for outside directors and clarification of the basis for differentiated terms for directors   Enhancement of the qualifications criteria for the Representative Director and establishment of guidelines for the selection of Representative Director candidates   Establishment of a Governance Structure Committee comprised of four outside directors to enhance independence (excluding internal directors)   Integration of the Representative Director Candidate Evaluation Committee and Outside Director Candidate Recommendation Committee into the “Director Candidate Recommendation Committee”   Composition of the Director Candidate Recommendation Committee with all outside directors to strengthen independence (excluding internal directors)

 

5

March 31, 2023		The 41st Annual General Meeting of Shareholders		Addition of a new purpose of business (Article 2): 35. Facility rental business Introduction of reporting obligations for treasury stock (Article 48-2)   Introduction of obligation to obtain shareholder approval for acquisition of treasury stock through cross-shareholding (Article 48-3)		Implementation of rental business to expand the customer base for DIGICO B2C   Strengthening communication with shareholders regarding treasury stock   Enhancing communication with shareholders regarding treasury stock

 

※	The latest amendment date of the Articles of Incorporation is March 28, 2024, and the agenda for the 43rd regular shareholders’ meeting (scheduled to be held on March 31, 2025) includes a proposal to amend part of the Articles of Incorporation.

 

6

II. Details of Businesses

1. (Consumer Services) Business Overview

All Consolidated companies of KT ( including KT) can be distinguished by a separate legal entity that provides independent services and products, and the business of each affiliated company is categorized into (1) ICT that provides wireless and wired communication/convergence services, (2) Finance business that provides credit card services, (3) Satellite broadcasting services, (4) Real estate business utilizing KT’s assets, and (5) Other businesses carried out by subsidiaries including content, information technology, global business, and others.

Revenue by division (Unit: KRW million)

 

		FY2024								FY2023								FY2022
Business Division		Revenue				%				Revenue				%				Revenue				%
ICT			18,579,678				58.7				18,371,437				58.3				18,289,243				59.4
Finance			3,557,455				11.2				3,720,859				11.8				3,613,981				11.7
Satellite Broadcasting			706,305				2.2				708,217				2.2				704,928				2.3
Real Estate			595,814				1.9				583,504				1.9				485,056				1.6
Other			8,204,574				25.9				8,118,542				25.8				7,708,737				25
Sum			31,643,826				100				31,502,559				100				30,801,945				100
Cons’ Adjustments			-5,212,622				—				-5,126,286				—				-5,151,934				—
Total			26,431,204				—				26,376,273				—				25,650,011				—

Financial statements for the 43^rd, 42^nd, and 41^st fiscal years are in accordance with K-IFRS No. 1116

A. ICT: KT Corporation

KT Corporation provides wireless communication, high-speed internet, corporate lines, and other fixed-line and wireless communication services for retail and corporate customers, as well as IPTV and other paid broadcasting services, AI/IT business, and B2B services. KT Corporation is integrating AX capabilities into its communication, media, and IT businesses to secure growth momentum.

B. Satellite Broadcasting Service Business: KT Skylife Co., Ltd.

KT Skylife Co., Ltd. pioneered the commercialization of multi-channel HD based on H.264 in Korea, leading the domestic HD broadcasting service market. It has launched the largest UHD multi-channel service in Korea and reflects customer trends towards rational consumption with its ‘30% discount home bundle’ product. Since 2020, it has launched the budget phone service ‘Skylife Mobile,’ offering a triple bundle product (TPS) combining MVNO phones, satellite broadcasting, and internet.

C. Real Estate Business: KT Estate Co., Ltd.

KT Group’s real estate business continues stable growth with a business strategy centered on owned assets. Through periodic portfolio strategy updates, it selects products reflecting real estate market fluctuations and maximizes asset value, while creating new spaces incorporating ICT innovative technologies.

 

7

D. Other Businesses: Commerce, Advertising, etc.

Genie Music Co., Ltd. operates a digital music service business, with genie being a leading music service brand in Korea, strengthening its position as a domestic music service provider.

KT Alpha Co., Ltd. is expanding its commerce business base from TV to mobile and is creating synergies through its merger with KT M House Co., Ltd., which has capabilities in the mobile coupon business.

Nasmedia Co., Ltd. operates internet and mobile display advertising, IPTV, and digital outdoor advertising media sales as its main business.

KT Studio Genie Co., Ltd. was established on January 28, 2021, to lead the group’s media/content business (content production/planning/investment/distribution, etc.) and has since strengthened its position as a media operator through the discovery of quality content.

KT Sat Co., Ltd.’s satellite service business generates revenue by securing satellites and providing services using orbit and frequency allocated by the government. It provides satellite services using four self-owned satellites and satellite transponder services from overseas operators.

KT Cloud Co., Ltd. has been expanding its customer base in the DC and Cloud business since its launch on April 1, 2022, solidifying market leadership in Cloud, AI Cloud, DC, and other business areas, and continuing its growth.

 

8

2. (Consumer Services) Major Products and Services

A. ICT : KT

Price fluctuations of KT’s mobile plans, IPTV, broadband, fixed-line phones, and combined products are as follows. For more information, please refer to the product service contents on our website(https://product.kt.com). Prices below do not reflect additional discounts.

 

-	Mobile Services (Unit : KRW, VAT included)

 

Plan						Monthly Rate
5G Choice			Premium Choice				130,000
			Special Choice				110,000
			Basic Choice				90,000
5G Simple 110GB/90GB/70GB/50GB/30GB							69,000/67,000/65,000/63,000/61,000
5G Slim 21GB/14GB/10GB/7GB/4GB							58,000/55,000/50,000/45,000/37,000

 

-	New Rate Plan: Online (KT.com) exclusive ‘Yogo’ rate plan (launched January 2024)

 

-

IPTV

 

•

TV rate plan restructured into a choice format (June 2, 2022), followed by an expansion of choice product lineup.

 

•

New rate plan launch: Genie TV Disney+ Choice Standard/Premium (June 2024).

 

-

Broadband

 

•

Product lineup includes Essence (maximum speed 1Gbps), Basic (maximum speed 500Mbps), Slim Plus (maximum speed 200Mbps).

 

•

New rate plan launch: Online (KT.com) exclusive ‘Affordable Discount’ rate plan (January 2024).

B. Satellite Broadcasting Service Business: KT Skylife Co., Ltd.

KT Skylife’s TV business is categorized into skyTV, GTS (formerly OTS), and UHD products. Internet rate plans are classified by speed (maximum 100Mbps, 200Mbps, 500Mbps, 1Gbps). Mobile rate plans are divided into data plans around 10,000 KRW, selectable plans, and unlimited plans. Detailed rate plan descriptions can be found on the website (skylife.co.kr).

C. Other Businesses

 

-	Genie Music

The price trends of our main service, music service plans, are as follows (unit: KRW)

 

9

Category		Product Type		Product (Pass) Composition		2024				2023				2022
Digital Music Service		Unlimited Music Streaming		Data Safe Music Streaming			10,900				10,900				10,900
				Music Streaming (PC + Mobile)			8,400				8,400				8,400
				Smart Music Streaming (Mobile Device Only)			7,400				7,400				7,400
		MP3 Download		Monthly 5 Songs Download			3,000				3,000				3,000
				Monthly 10 Songs Download			5,500				5,500				5,500
		Music Streaming by Play Count		300 Plays			4,800				4,800				4,800
				100 Plays			1,600				1,600				1,600
				20 Plays			800				800				800
Partnership Service		Music + E-book Unlimited Use (genie X millie)		Music (Mobile) Streaming + E-book/Audiobook			13,000				13,000				13,000

 

-	KT CS, KT IS

Due to the nature of contact centers, it is difficult to derive meaningful figures through average price calculation.

 

-	KT M Mobile Co., Ltd.

KT M Mobile’s mobile rate plans are divided into postpaid phone plans, terminal bundle plans, and USIM-only plans. Detailed rate plan descriptions can be found on the website (ktmmobile.com).

 

-

KT Cloud

 

1)

Cloud

 

Public		-  On-demand service that provides Cloud-based IT infrastructure (computing/storage/NW, etc.) tailored to client needs, available whenever and as much as needed -  Offers high performance and stability without concerns for IT procurement, operation, or management
CDN		-  Contents Delivery service that delivers large-scale contents in real-time anywhere in the world -  Supports 100+ countries and 200,000+ Edge services
Private		-  Client-specific Cloud service independently built at client’s location -  Provides tailored services optimized for client business environments with high stability and excellent security
Marketplace		-  Digital catalog service that curates industry-leading 3rd party solutions to clients’ needs -  Provides easy access to solutions that are optimized for clients’ business needs
AI Computing		-  Service providing flexible and scalable AI accelerators for AI learning/inference. -  Allows variable adjustment of the accelerator’s computing performance and memory capacity, offering cost-saving benefits by charging only for usage.

 

10

2)

DC

 

Colocation		-  Provides advanced computing infrastructure by directly accessing KT IDC Internet backbone network to improve internet connectivity speed and by providing power, air conditioning, and security infrastructure.
Managed Service		-  IT outsourcing service managing the customer’s IT systems and various data center infrastructure resources using KT Cloud’s infrastructure (including monitoring tool rental, IT infrastructure operation, maintenance, relocation, consulting, etc.).
DCx (DC Everything)		-  Service that designs, builds, and operates the customer’s own data center tailored to their needs.
Connectivity		-  Service that provides various NW connections with DC/CSP for data center tenants (including XC, HCX, DCI, etc.).

 

11

3. (Consumer Services) Information about property, plant and equipment

A. Status of property, plant and equipment(As of December 31, 2024)

KT

 

- Land				(Unit: KRW million)

 

Book value as of January 1, 2024		Increase				Decrease				Book value as of December 31, 2024				official land price
848,709			13,697				-1,928				860,478				5,655,421

 

- Building				(Unit: KRW million)

 

Book value as of January 1, 2024		Increase				Decrease				Book value as of December 31, 2024				official land price
983,714			64,641				(1,406	)			(70,010	)			976,939

 

- Other property, plant and equipment				(Unit: KRW million)

 

Classification		Book value as of January 1, 2024				Increase				Decrease				Depreciation Cost				Book value as of December 31, 2024
Constructed Structure			43,684				963				—				(3,146	)			41,501
Machinery facilities			5,134,670				1,528,420				(37,768	)			(1,722,260	)			4,903,062
Cable facilities			3,615,847				612,630				(29,495	)			(592,995	)			3,605,987
Financial Leasing			976,625				288,904				(24,476	)			(344,754	)			896,299
Others			70,312				24,357				(1,305	)			(31,430	)			61,934
Sum			9,841,138				2,455,274				(93,044	)			(2,694,585	)			9,508,783

KT Skylife

 

- Operating equipment				(Unit: KRW million)

 

Land(m2)		Building(m2)				Sum(m2)				Book value
396			22,732				23,128				16,440

- Other business equipment

(Unit: KRW million)

 

Classification		Asset value
Broadcast center			25,471
Satellite receiving device			64,564
Sum			90,035

 

12

KT Estate

 

- Investment real estate				(Unit: KRW million)

 

Book value as of January 1, 2024		Acquisition or Subsitution				Depreciation cost				Disposal				Book value as of December 31, 2024
1,139,102			(1,392	)			(38,017	)			(33,976	)			1,065,717

 

- Tangible assets				(Unit: KRW million)

 

Book value as of January 1, 2024		Acquisition or Subsitution				Depreciation cost				Disposal				Book value as of December 31, 2024
79,036			3,286				(7,178	)			(1,696	)			73,448

B. Capital Expenditure

KT, on stand alone basis, invested a total of KRW 2.299 trillion as CAPEX (Capital Expenditure) during 2024. Major subsidiaries’ CAPEX for 2024 was KRW 0.823 trillion for the growing businesses such as finance, media/content, cloud/IDC, and real estate.

 

13

4. (Consumer Services) Revenue from Major Business Areas

 

A.

ICT : KT

(1) Performance in terms of revenue (Unit: KRW millions, %)

 

Category		2024								2023								2022
		Amount				%				Amount				%				Amount				%
Service revenue			16,153,402				86.9				15,932,421				86.7				15,766,188				86.2
Merchandise sales			2,426,276				13.1				2,439,016				13.3				2,523,055				13.8
Total			18,579,678				100.0				18,371,437				100.0				18,289.243				100.0

(2) Methods and Conditions of Sales

KT provides our products and services to customer through the sales organization and channel as above, basically, customers pay the service charges with cash, bank direct debit bill and credit card. In addition to monthly service fee, customers must pay the equipment rental fee and installment fee as well.

For the B2B business, the supply conditions and service fees are determined via a negotiation with enterprise customers.

(3) Sales Strategy

(a) Mobile Service

 

•

Device leadership : Differentiate wireless experience with pre-emptive adoption of differentiated 5G/LTE smartphones and new forms of emerging devices.

 

•

Network quality differentiation : 5G first C-DRX Application and 5G network quality based on edge communication center, tight national network LTE-A Network.

 

•

Innovative rate plans : ‘5G Choice plan’ to offer unlimited data and worldwide data roaming, and LTE data ON providing unlimited data across all plans

 

•

Segment marketing : Introducing products exclusively for young customers such as Y super pan, Y24 and providing premium single bundled rate plan optimized for single-person households

 

•

Loyalty program : A variety of mobile phone replacement programs and installment plans, including industry-leading membership benefits, long-term customer special benefits, and rental services to reduce inconvenience in device replacement.

 

•

New additional service: New additional services (V Coloring, etc.) that will become the driving force for additional sales based on the 5G platform.

 

•

Differentiated service : The CS system optimized for smartphones, the benefits of reducing telecommunication charge through affiliated cards, differentiated mobile phone insurance products, and ‘Dual Number’ service to use 2 phone numbers in 1 phone.

 

14

(b) Broadband Internet Service

 

•

Lead the market with preemptive GiGA infrastructure investment and service quality enhancement

 

•

Expand sales synergy by bundling products between telco (5G, IPTV, etc.) and non-telco (CCTV, IoT, etc.) services

 

•

Broaden internet business coverage such as low cost market with skylife internet resale

 

•

Provide the optimized wireless internet environment through introducing advanced WiFi devices such as ‘GiGA WiFi home ax’, ‘GiGA WiFi Buddy ax’, ‘GiGA WiFi Premium 6E’, etc.

 

•

Offer the customized services for specific segments based on the customer behavior analysis to enhance customer convenience

 

•

Expand the product lineups including bundling, WiFi devices for small business owners

 

•

Acquire a number of broadband lines by winning the B2B/B2G orders e.g. mobile internet infrastructure installment business.

 

•

AP sales expanded and additional sales increased with the launch of the new WiFi model (KT WiFi 6D) (launched on 24.01.02).

 

•

Non-face-to-face channel-only benefits provided with the launch of the direct-only product.

 

(c)	Telephone Service

 

•

Preemptive care activities to minimize customer churn :

 

•

Uncombined customers using the Internet and TV products : Service bundling propulsion

 

•

Customers who need home telephony service : Promoting KT telephony 3000 price plan

 

•

SOHO, small business customers : Pushing to sign up for converged products including Telephone manager, Ringo

 

•

Preventing from decreasing revenue by restructuring price plans :

 

•

Rolling out new VoIP price plan which is charging per second(February, 2020)

(d) IPTV Service

 

•

Improve the product’s marketability take into strategic partnerships considering the changes in the media environment

 

•

Increase IPTV sales by introducing new media devices

 

•

Based on AI, organizing personalized content and strengthening the recommendation

 

15

B. Satellite Business (KT Skylife)

(1) Performance in Terms of Revenue (Unit: KRW millions, %)

 

Category		2024								2023								2022
		Amount				%				Amount				%				Amount				%
Service revenue			444,391				62.92				435,397				61.5				399,555				57.6
Platform revenue			203,977				28.88				209,602				29.6				217,167				31.4
Others			57,936				8.20				63,218				8.9				76,201				11.0
Total			706,305				100.0				708,217				100.0				693,778				100.0

 

※	The above numbers are written on a separate basis.

※	Platform revenue: Advertisement revenue + Home shopping transmission fee + T-commerce transmission fee

※	Service revenue: Broadcasting revenue + Internet revenue + Mobile revenue

(2) Sales Organization and Channels

KT Skylife currently has various sales channels such as skylife head office, customer center, 196 sales offices which are further organized under 10 branches (3 in Seoul, 2 in Busan, and 1 each in Daegu, Wonju, Daejeon, Gwangju, and Jeonju), approximately 203 local business operators, KT, and HCN.

Sales offices perform sales and services through consignment contracts with KT Skylife, and 2 customer centers(one each in Suwon, Gwangju) perform business activities such as customer counseling, as well as defending customer churn and attracting new subscribers.

The combined products are sold through KT’s in-house/outdoor sales channels and group companies, which are nationwide, and we are continuously sold on the headquarters’ website.

In addition, we have been continuously partnering with various on and off-line companies such as companies, government offices, and online markets to secure sales channels.

C. Others Business

KT Estate

(1) Performance in Terms of Revenue (Unit: KRW millions, %)

 

Category		2024								2023								2022
		Amount				%				Amount				%				Amount				%
Rental business			188,788				31.0				184,477				31.2				175,167				35.9
Development business			78,148				12.8				89,073				15.1				11,156				2.3
PM fee			71,472				11.7				63,612				10.7				58,073				11.9
Real estate commission business			228,107				37.4				195,797				33.1				140,098				28.7
Others			43,051				7.1				58,826				9.9				103,257				21.2
Total			609,566				100.0				591,785				100.0				487,751				100.0

 

※	Performances were written in accordance with K-IFRS

 

16

2) Sales Organization and Channels

KT Estate’s main business is real estate leasing service and development. For this reason, this report does not disclose the sales organization and channels information.

KT Sat

(1) Performance in Terms of Revenue (Unit: KRW millions, %)

 

Category		2024								2023								2022
		Amount				%				Amount				%				Amount				%
Gap filler rentals			109,752				58.3				108,661				59.7				105,171				58.4
Data transmission			13,663				7.3				14,019				7.7				17,990				10.0
Video transmission			7,559				4.0				7,979				4.4				8,340				4.6
Mobile satellite service			28,680				15.2				28,243				15.5				24,507				13.6
Others			28,560				15.2				23,246				12.8				24,067				13.4
Total			188,214				100.0				182,149				100.0				180,075				100.0

 

※	Performances were written in accordance with K-IFRS

(2) Sales Organization and Channels

KT SAT’s sales organization manages and operates customers by region. Due to the characteristics of the service, the company has a large number of corporate customers and is attracting new customers through sales of internal sales representatives and external distribution networks (partners).

KT alpha

(1) Performance in Terms of Revenue (Unit: KRW millions, %)

 

Category		2024								2023								2022
		Amount				%				Amount				%				Amount				%
T-Commerce(K Shopping)			275,328				70.9				288,605				73.5				320,109				74.7
T-Commerce(K Shopping)			112,842				29.1				104,177				26.5				108,140				25.3
Total			388,170				100.0				392,782				100.0				428,249				100.0

 

※	Performances were written in accordance with K-IFRS.

※	Sales figures for 2022 and 2023 have been restated to reflect the discontinuation of operations due to the transfer of the content distribution business.

 

17

(2) Sales Organization and Channels

(a) T-Commerce

After the MD has signed a contract with the vendor to supply the product, the product information is provided directly to the general customer through platforms such as VOD, TV, Internet, and mobile. After receiving the customer’s order through TV remote control, internet, and mobile, if payment is made, we will ship the product through the delivery company.

(b) Mobile Gift Commerce

KT alpha divides its customers to B2B and B2C depending on the purchasing entities and provides its service. For the B2B customers, the company carries out the sales activities directly to enterprise customers who want to purchase in bulk. Also, the company provides the mobile gift certificate purchase online service (“Giftishow biz”) optimized for business purchase process indirectly such as promotion planning and managing the budget, etc. For B2C customers, the company service through its own web/app and also a variety of affiliate channel such as mobile commerce channel and online open market, etc.

Genie Music

(1) Performance in Terms of Revenue (Unit: KRW millions, %)

 

		2024								2023								2022
Category		Amount				%				Amount				%				Amount				%
Music business			187,489				82.0				200,410				80.0				222,660				92.7
Others			41,847				18.0				50,192				20.0				17,610				7.3
Total			229,336				100.0				250,602				100.0				240,270				100.0

 

※	The numbers are on a separate basis and were written in accordance with K-IFRS.

(2) Sales Organization and Channels

(a) Music Business (Music Services, Content Distributor)

Genie Music provides music services directly to the domestic customers through its own music platform Genie such as website, mobile app and etc. Also, the company is providing music services through the value-added services which telecom companies roll out.

As a content distributor, Genie Music distributes a variety of content including music sources to the domestic and overseas business players.

(b) Others (Performance, MD and etc.)

Genie Music generates others revenue through performance business, MD products, etc.. For the performance business, it shares ticket sales from performances with production/planning companies. For the MD business, the company is selling the MD products (which are bought or imported from MD vendor) to the online and offline stores.

 

18

KT Telecop

 

(1)	Performance in Terms of Revenue (Unit: KRW millions, %)

 

		2024								2023								2022
Category		Amount				%				Amount				%				Amount				%
Security service			527,472				99.2				521,519				99.2				510,384				98.8
Distribution			3,674				0.7				3,781				0.7				5,403				1.1
Others			524				0.1				646				0.1				647				0.1
Total			531,670				100.0				525,946				100.0				516,434				100.0

※ The above numbers are written on a separate basis.

 

(2)	Sales Organization and Channels

KT Telecop operates the business department, regional headquarters strategic sales team, branch offices. And we provide dispatch security service and integrated security service.

Nasmedia

 

(1)	Performance in Terms of Revenue (Unit: KRW millions, %)

 

		2024								2023								2022
Category		Amount				%				Amount				%				Amount				%
Digital Advertising			60,846				58.6				60,160				55.0				66,184				61.3
Platform			42,979				41.4				49,170				45.0				41,794				38.7
Total			103,825				100.0				109,329				100.0				107,977				100.0

※ The above numbers are written on a separate basis.

 

(2)	Sales Organization and Channels

The online advertising industry can be divided into four areas: advertisers, advertising companies, media reps, and media. Media reps sells media time or space to advertisers and advertising for media owners and generate revenue based on commission from media owners.

KT Studio Genie

 

(1)	Performance in Terms of Revenue (Unit: KRW millions, %)

 

		2024								2023								2022
Category		Amount				%				Amount				%				Amount				%
Content Production			125,502.1				91.5				206,574				93.3				95,083				93.7
Distribution Agency			5,253.8				3.8				8,063				3.6				3,096				3.0
PR Agency			3,209.6				2.3				5,409				2.4				2,442				2.4-
Others			511.1				0.4				1,315				0.7				833				0.9
Total			137,112.9				100.0				221,360				100.0				101,454				100.0

 

19

2)	Sales Organization and Channels

KT Studio Genie sells its content and televising rights through the captive channels (KT and KT’s subsidiaries), the domestic non-captive channels and global partners.

KT Cloud

 

(1)	Performance in Terms of Revenue (Unit: KRW millions, %)

 

		2024								2023								2022
Category		Amount				%				Amount				%				Amount				%
Total			779,213				100.0				670,917				100.0				430,437				100.0

※ Revenues are disclosed after its establishment on 1^st April in 2022.

 

2)	Sales Organization and Channels

KT Cloud operates 2 kinds of businesses(cloud and data center services).

For the cloud business, it is selling the service directly and indirectly. In case of the direct sale, KT Cloud makes a contract and provides the service in partnership with the sales organization of KT Enterprise Business Group. In case of the indirect sale, KT Cloud has around 150 external partner companies which are in charge of reselling. The partners resell and deliver the cloud service to the final customers.

For the data center business, there are domestic sales for the corporate/public/finance/Biz customers and global sales for the international corporate customers. KT Cloud are selling the data center service by using its own direct sales organization and KT’s sales channels as a consignment sale.

 

20

5. (Consumer Services) Research and Development Activities

A. R&D Costs—Consolidated Basis (Unit: KRW millions, %)

 

Category		2024				2023				2022
Raw Materials			—				—				—
Labor Costs			103,655				98,894				91,785
Depreciation			30,102				29,716				28,541
Commissions			—				—				—
Others			77,959				96,712				110,295
Total R&D Costs ( ※ 1)			211,716				225,322				230,621
(Subsidy from Government)			234				332				8
Accounting costs Research and Ordinary Development Costs			192,569				183,527				174,936
treatment Development Costs (Intangible Assets)			18,913				41,463				55,677
Percentage of R&D Costs over Revenue ( ※ 2)			0.80	%			0.85	%			0.90	%

※ 1: Total costs before deducted the subsidy from government

※ 2: Rate of Total costs before deducted the subsidy from government and Total Revenue

B. R&D Organization Structure (KT)

 

•

Research Institute under the Network Department and Technology Innovation Department

 

 

•

Main Mission

 

•

Network Department

 

•

Preemptive acquisition of future network evolution technology

 

-

Verification of core technology for preemptive response to 6G service

 

-

Securing core technology for future communication business such as quantum cryptography, UAM, and ORAN

 

21

•

Securing AI and cloud-based NW operation optimization technology

 

-

AI-based IP/wireless core for preemptive recognition of large-scale failures, wired platform pre-detection technology

 

-

Automation of communication pole safety inspection to respond to continuous decrease in personnel on the line

 

-

Development of operation server virtualization conversion and CPU control technology for energy saving

 

•

Strengthening business competitiveness and supporting commercialization with customer-centered AI differentiation technology

 

-

Strengthening AI-based customer protection (spam filter, phishing call blocking)

 

-

Lightweight private 5G and mobile corporate calls considering operating costs of B2B customers

 

•

Technology Innovation Department

 

•

Securing core technology for future business and strengthening business competitiveness

 

-

Establishing mid- to long-term technology strategy to lead future technology

 

-

Supporting core technology development and commercialization to strengthen business competitiveness

 

-

Mid- to long-term future core technology Development and Acquisition

 

•

Customer-centered technology differentiation, performance creation through organic linkage of business and technology

 

-

Development of differentiated Biz solutions/platforms for B2B business innovation

 

-

Development of Industry AI core technologies/platforms/services for Industry Biz innovation

 

•

Realization of Fast Delivery from discovery of future growth engines to commercialization through ‘Innovation Pipeline’ based on AI Core technology

 

-

Development of Korean AI models and application services

 

-

Establishment of No. 1 AI Core technology capabilities

 

-

Fast Delivery as a new growth business

 

22

6. (Finance) Business Overview

BC Card’s main business is issuing and managing credit cards, transaction processing of credit card and recruiting and managing of credit card merchants. Also, BC Card provides credit services such as short-term and long-term card loans to cardholders, while conducting supplementary businesses such as retail business via telephone, mail order or online, insurance, tourism service and loans.

The credit card industry is a typical domestic-based sector, and it is highly sensitive to changes in private consumption and the overall economic conditions of the country. Entry into the market requires authorization from the Financial Services Commission, and a high level of credit risk management capability is essential for stable business operations, resulting in significant barriers to entry.

BC Card is mainly engaged in credit card processing business, and has secured a stable revenue base for card issuers based on its position in the credit card processing market. Additionally, BC Card strives to provide customers with easy and convenient financial services through mobile platform ‘Paybook’ for simplified payments and various financial services.

Credit sales amounted to KRW 131.5316 trillion, long and short-term credit card loans to KRW 7.8766 trillion, financial lease to KRW 118.5 billion, factoring to KRW 40.7 billion, and other loans receivables to KRW 794.5 billion, resulting in operating revenue of KRW 3.8058 trillion related to those.

BC Card raises funds through the issuance of corporate bonds and CP, and the average balance of financing for the current year was KRW 1.6083 trillion, with an average funding rate of 3.67%.

The adjusted capital adequacy ratio at the end of the current term was 29.92%, significantly exceeding the limit of 8% under the Regulation on Supervision of Credit-Specialized Financial Business. The delinquency ratio was 2.55%, and the KRW Liquidity Ratio was 115.62%.

 

23

7. (Finance) Business Status

A. Performance in Terms of Revenue (Unit: KRW million, %)

 

Category		2024								2023								2022
		Amount				%				Amount				%				Amount				%
Card processing revenue			3,033,416				79.7				3,236,100				80.4				3,188,689				81.8
Service fee revenue			168,218				4.4				173,209				4.3				169,694				4.4
Additional business fee revenue			72,319				1.9				64,301				1.6				57,480				1.5
Member Service Fee revenue			51,553				1.4				55,274				1.4				55,560				1.4
Private Label Credit Card revenue			37,865				1.0				24,069				0.6				22,971				0.6
Financial revenue			104,388				2.8				109,625				2.7				70,427				1.8
Foreign currency-related profit			17,962				5.6				12,805				0.3				7,426				0.2
Other operating revenue			320,049				8.4				351,528				8.7				324,038				8.3
Total			3,805,770				100.0				4,026,911				100.0				3,896,285				100.0

 

※	The above numbers are written on a K-IFRS consolidated basis.

B. Financing and Operation

 

(1)

Financing

(Unit: KRW million, %)

 

						2024																2023																2022
Category						Average Balance				amount of payments				Interest rate				%				Average Balance				amount of payments				Interest rate				%				Average Balance				amount of payments				Interest rate				%
Short-term debt			CP				36,704				1,384				3.77				2.28				115,424				6,191				5.36				7.20				65,076				2,723				4.18				6.24
			General debt				—				—				—				—				29,068				1,766				6.07				1.82				39,274				1,445				3.68				3.77
			Other debt				2,531				116				4.58				0.16				4,877				229				4.70				0.30				3,287				123				3.74				0.32
Lomg-term debt			CP				183,350				6,029				3.29				11.40				184,772				5,880				3.18				11.52				150,237				4,501				3.00				14.41
Corporate Bonds							1,385,720				51,524				3.72				86.16				1,269,428				43,034				3.39				79.16				784,488				18,327				2.34				75.26
Total							1,608,305				59,053				3.67				100.00				1,603,569				57,100				3.56				100.00				1,042,362				27,119				2.60				100.00

 

※	Financial Supervisory Service’s business report standard

※	The other debt of short-term debt refer to borrowings under the credit line agreement

※	% represents the proportion to the Average Balance

 

24

(2)

Operation

(Unit: KRW million, %)

 

		2024																2023																2022
Category		Average Balance				Profit amount				ROI				%				Average Balance				Profit amount				ROI				%				Average Balance				Profit amount				ROI				%
Credit Card assets			569,702				83,752				14.70				34.06				287,274				46,063				16.03				21.07				110,064				20,582				18.70				13.13
Lease assets			58,352				3,080				5.28				3.49				25,349				1,434				5.66				1.86				14,634				525				3.59				1.75
Factoring			61,105				4,012				6.57				3.65				61,072				3,835				6.28				4.48				70,358				4,241				6.03				8.39
General loan			983,734				82,349				8.37				58.80				989,412				86,752				8.77				72.59				643,147				51,623				8.03				76.73
Total			1,672,893				173,193				10.35				100.00				1,363,107				138,084				10.13				100.00				838,203				76,971				9.18				100.00

 

※	Financial Supervisory Service’s business report standard

※	Lease assets are comprised of Financial lease bonds

C. Status by Business areas

 

(1)	Business performance by department

(Unit: KRW billion, %)

 

						2024								2023								2022
Category						Amount				%				Amount				%				Amount				%
Card		Credit sales		Lump sum payment			1,125,254				80.17				1,171,936				79.67				1,120,765				79.89
				Installment			190,062				13.54				210,115				14.28				187,203				13.35
		Cash loan		Short-term card loan (cash advance)			78,238				5.57				81,132				5.52				83,874				5.99
				Long-term card loan (card loan)			528				0.04				445				0.03				57				0.00
Lease							1,185				0.08				478				0.03				176				0.01
Factoring							407				0.03				138				0.01				197				0.01
Loan							7,945				0.57				6,735				0.46				10,582				0.75
Total							1,403,619				100.00				1,470,979				100.00				1,402,854				100.00

 

※	Financial Supervisory Service’s business report standard

※	The amount of credit sales(Lump sum payment and Installment) and short-term card loans(cash advance) is the total performance of BC Card and its member companies

 

(2)	Member status

 

25

(Unit: thousand, thousand, %)

 

				2024				2023				2022				YoY
Category																Change				% of Change
Individual member		Number of cards			39,176				39,426				39,904				-250				-0.63
		Number of members			32,801				36,671				33,963				-625				-1.87
Corporate member		Number of cards			5,085				5,214				5,229				-129				-2.47
		Number of members			3,086				3,245				3,353				-159				-4.90
Total		Number of cards			44,261				44,640				45,134				-379				-0.85
		Number of members			35,887				36,671				37,316				-784				-2.14

 

※	Financial Supervisory Service’s business report standard

 

(3)	The number of affiliated merchants

(Unit : thousand, %)

 

Category		2023				2022				2021				YoY
														Change				% of Change
Affiliated merchants			3,481				3,427				3,455				54				1.58

 

※	Financial Supervisory Service’s business report standard

 

26

8. (Finance) Derivatives Transaction

A. The breakdown of derivatives currently held by BC Card for trading purposes or hedging purposes is as follows :

(1) Drag-along Right

BC card gave drag-along rights to financial investors participating in capital raise of K Bank. In case K Bank fails in IPO at an agreed terms, financial investors may exercise their drag-along rights. In such a case, BC card may either comply with the drag-along request or exercise its own put option. If the drag-along rights are exercised by the financial investors, BC card must either exercise its put option or guarantee the investors a return in accordance with the agreed terms.

 

(2)	Interest rate Swap

This contract is aimed at avoiding cash flow fluctuation risks caused by changes in interest rates for BC Card’s held floating-rate KRW denominated bonds, and the major details are as follows

(Unit: KRW million)

 

Item		Counter Party				Contract Signing date				Contract expiration date				Contract amount				Interest rate
																		Contract interest rate								Swap rate
Interest rate swap			Shinhan Bank				2022-03-25				2025-03-25				60,000				CMS				(5Y	)			2.70	%
							2022-03-25				2032-03-25				40,000				CMS				(10Y	)			2.64	%

B. Derivative assets and liabilities as of the reference date are as follows :

(1) 2024

(Unit: KRW million)

 

Item		Trading purpose								Risk management purpose
		Asset				Liability				Asset				Liability
Drag-along Right			—				131,630				—				—
Interest rate Swap			—				—				295				—
Total			—				131,630				295				—

(2) 2023

(Unit: KRW million)

 

Item		Trading purpose								Risk management purpose
		Asset				Liability				Asset				Liability
Drag-along Right			—				133,293				—				—
Interest rate Swap			—				—				1,214				—
Total			—				133,293				1,214				—

 

27