Table of Contents
Exhibit 99.1
ANNUAL FINANCIAL REPORT
OF
KT CORPORATION
(From January 1, 2021 to December 31, 2021)
(Translation of the Annual Report filed in Korean with the Financial Supervisory Service of Korea)
Table of Contents
1
Table of Contents
1. | Corporate Purpose of KT Corporation |
Business Objectives
1. | Information and communications business; |
2. | New media business and internet multimedia broadcasting business |
3. | Development and sale of software and contents; |
4. | Sale and distribution of information communication equipment; |
5. | Testing and inspection of information communication equipment, device or facilities; |
6. | Advertisement business; |
7. | Retail business via telephone, mail order or online; |
8. | IT facility construction business, electrical construction business and fire protection facility business |
9. | Real estate and housing business |
9(1). | Business facilities management and business support service industry |
10. | Electronic banking and finance business; |
11. | Education and learning service business; |
12. | Security service business (Machinery system surveillance service, Facilities security service, etc); |
13. | Research and technical development, education, training and promotion, overseas businesses, and export and import, manufacture and distribution related to activities mentioned in Subparagraphs 1 through 12 |
2
Table of Contents
14. | Frequency-based telecommunications services and other telecommunications services |
15. | Value-added telecommunications business |
16. | Manufacture, provision (screening) and distribution of contents such as musical records, music videos, movies, videos and games |
17. | Issuance and management of pre-paid electronic payment instruments, and businesses related to electronic finance such as payment gateway services |
18. | Sales and leasing of equipment and facilities related to the activities mentioned in Subparagraphs 14 through 17 |
19. | Any overseas business or export and import business related to activities mentioned in Subparagraphs 14 through 18 |
20. | Tourism |
21. | (Deleted) |
22. | New and renewable energy, energy generation business, electrical system design business and electrical safety management agent business |
23. | Health Informatics business |
24. | Manufacture of communication equipment, device or facilities for military purpose |
25. | Energy diagnostics business, professional business relating to energy conservation, and any and all other business in the field of energy use rationalization |
26. | Information securities, any and all other business in the field of identification service |
27. | Activities of management consultancy |
28. | Warehousing and storage |
29. | Total construction business |
30. | Specialized design services |
31. | Freight Transportation Business, Cargo Transportation Intermediation Business |
32. | Manufacturing and sales of medical device |
33. | Any and all other activities or businesses incidental to or necessary for attainment of the foregoing |
34. | Personal information management business and ancillary work |
3
Table of Contents
2. | History |
A. | Changes since Incorporation |
(1) | Date of Incorporation: December 10, 1981 |
(2) | Location of Headquarters: |
90 Bulljeong-ro
Bundang-gu, Seongnam-city
Gyeonggi-do 13606
Korea
(3) | Major Changes in KT Corporation |
• | On March 27, 2009, KT Corporation (“KT”) signed a merger agreement with its mobile subsidiary KTF, in which KT held a 54.25% interest, and on June 1, 2009, the merger was completed. |
• | At the annual general shareholders’ meeting held on March 11, 2011, KT’s shareholders approved the addition of the health bioinformatics business to KT’s business objectives, which is a new emerging industry that integrates IT with genetic data information sequencing, computation, accumulation, and application. The shareholders also approved the addition of military communication equipment, devices and facility manufacturing to its business objectives. |
�� | • | Mr. Suk Chae Lee was reelected as the Chief Executive Officer (“CEO”) and President of KT at the annual general shareholders’ meeting held on March 16, 2012. |
• | At the annual general shareholders’ meeting held on March 15, 2013, KT’s shareholders approved the addition of energy inspection, energy conservation, and the energy use rationalization business to KT’s business objectives. |
• | Mr. Chang-Gyu Hwang was elected as the CEO and President of KT at the extraordinary general shareholders’ meeting held on January 27, 2014. |
• | At the annual general shareholders’ meeting held on March 25, 2016, KT’s shareholders approved the addition of Information securities, any and all other business in the field of identification service. |
• | Mr. Chang-Gyu Hwang was re-elected as the CEO and President of KT at the annual general shareholders’ meeting held on March 24, 2017. KT’s shareholders approved the addition of fire protection facility business, electrical system design business, activities of management consultancy, and warehousing & storage |
• | At the annual general shareholders’ meeting held on March 23, 2018, KT’s shareholders approved the addition of electrical safety management agent business. They also approved the Total construction business for Clarification of Business Purpose and Specialized design services for Business Area Expansion. |
• | Mr. Hyeon-Mo Ku was elected as the Representative Director of KT at the annual general shareholders’ meeting held on March 30, 2020. |
4
Table of Contents
• | At the annual general shareholders’ meeting held on March 31, 2021, KT’s shareholders approved the addition of “My data” business on the Article of Incorporation. They also approved change in notification and diversification of shareholders return method. |
3. | Total Number of Shares and Related Matters |
A. | Status of Capital Increase/Decrease (As of December 31, 2021) (Unit: KRW million, Shares) |
Type of Stock | Category | 40th (The end of 2021) | 39th (The end of 2020) | 38th (The end of 2019) | ||||||||||
Common Stock | Current Number of Issued Shares | 261,111,808 | 261,111,808 | 261,111,808 | ||||||||||
Par value | 0.005 | 0.005 | 0.005 | |||||||||||
Capital Stock | 1,564,499 | 1,564,499 | 1,564,499 | |||||||||||
Preferred Stock | Current Number of Issued Shares | |||||||||||||
Par value | ||||||||||||||
Capital Stock | ||||||||||||||
Others | Current Number of Issued Shares | |||||||||||||
Par value | ||||||||||||||
Capital Stock | ||||||||||||||
Total | Capital Stock | 1,564,499 | 1,564,499 | 1,564,499 |
Date of Shares Issued | Type of Shares Issued (Retired) | Details of Issued (Retired) Shares | ||||||||||
Type | Number of Issued | Par Value per Share | Par Value of | Note | ||||||||
— | — | — | — | — | — | — |
B. | Total Number of Shares (As of December 31, 2021) (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 | 51,787,959 | — | 51,787,959 | |||||||||||
Details of Reduced Shares | 1. Reduction of Capital | — | — | — | ||||||||||
2. Share Retirement | 51,787,959 | — | 51,787,959 | |||||||||||
3. Redemption of Redeemable Shares | — | — | — | |||||||||||
4. Other | — | — | — | |||||||||||
IV. Current Number of Issued Shares (II – III) | 261,111,808 | — | 261,111,808 | |||||||||||
V. Number of Treasury Shares | 25,303,662 | — | 25,303,662 | |||||||||||
VI. Current Number of Issued and Outstanding Shares | 235,808,146 | — | 235,808,146 |
5
Table of Contents
C. Acquisition and Disposal of Treasury Shares (As of December 31, 2021) (Unit: Shares)
Method of Acquisition | Type of Shares | Beginning of Term | Acquisition (+) | Disposition (-) | Retirement (-) | End of Term | ||||||||||||||||||||
Direct Acquisition | | Over-the- Counter |
| Common shares | 14,719,678 | — | 1,566,902 | — | 13,152,776 | |||||||||||||||||
Preferred shares | — | — | — | — | — | |||||||||||||||||||||
| Exchange- Traded | | Common shares | — | — | — | — | — | ||||||||||||||||||
Preferred shares | — | — | — | — | — | |||||||||||||||||||||
Indirect Acquisition (e.g. Trust Contract) | Common shares | 4,550,000 | 7,600,886 | — | — | 12,150,886 | ||||||||||||||||||||
Preferred shares | — | — | — | — | — | |||||||||||||||||||||
Total | Common shares | 19,269,678 | 7,600,886 | 1,566,902 | — | 25,303,662 | ||||||||||||||||||||
Preferred shares | — | — | — | — | — |
• | The above “Beginning of Term” means as of January 1, 2021 and “End of Term” means as of December 31, 2021, which is the most recent date of shareholder registry. |
• | Details of Disposition of treasury shares from January 1, 2021 to December 31, 2021 are as follows. |
- On July 14, 2021, KT disposed 134,570 shares of treasury shares for stock grant to compensation to outside directors and executive directors for FY 2020.
- On December 14, 2021, KT disposed 1,432,332 shares of treasury shares for stock grant to provide stock grant compensation to employees
Overview |
1. | (Manufacturing Service) Business Overview |
A. | ICT : KT |
KT operates wireless communications services for individual and corporate customers such as wireless communications, high-speed Internet, and corporate lines, pay TV services such as IPTV, and platform-based B2B businesses such as IDC, Cloud, and AI/DX. KT declared its change into a digital platform company (DIGICO) in 2020 and is accelerating innovation from various businesses such as media, finance, and B2B to customer-centered platforms. Based on the solid performance growth of Telco business in 2021, we are striving for the growth of B2B+DIGICO business.
6
Table of Contents
B. | Satellite TV : Skylife |
KT Skylife is leading the domestic HD broadcasting service market by commercializing H.264 based multi-channel HD for the first time in Korea. It is launching Korea’s largest UHD multi-channel service and reflecting customer trends that aim for rational consumption with ‘30% discount home combination’ products. In October 2020, it launched ‘SkyLife Mobile’, an affordable phone service, and started selling three types of combined products (TPS) including affordable phones, satellite broadcasting, and the Internet.
C. | Other Businesses (Estate, Commerce, Ad, etc.) |
Genie Music provides high-quality music streaming services and differentiated music services using artificial intelligence (AI) curation technology based on customer music listening history through the music service platform ‘genie’. KT SAT’s satellite service business is a business that receives orbit and frequency from the government and uses them to secure satellites and generate profits by providing services. We provide satellite services using a total of four self-owned satellites and satellite relay services from overseas operators. KT ESTATE provides the best value in each field, such as project financing, construction management, marketing, leasing and management, as well as planning and design of real estate products. KT Alpha (formerly KT HiTel) is expanding its e-commerce business from TV to mobile, and is creating e-commerce capabilities and synergy through a merger with KT mhows which has mobile coupon business capabilities. Nasmedia is mainly engaged in Internet and mobile, IPTV, and digital outdoor advertising media sales centered on display advertising, and launched K-Deal, a text-based CPS advertising product, in 2021. KT Studio Genie was established on January 28, 2021 to lead the group’s media/content business (content production/planning/investment/distribution, etc.).
7
Table of Contents
2. | (Manufacturing Service) Main Products and Services |
A. | ICT : KT |
The price fluctuations of representative rates of mobile, IPTV, broad band, fixed-line phones, and combined products provided by KT are as follows. For more information, please refer to the product service contents on our website(https://product.kt.com). The prices below are the amounts that do not reflect the Additional discount.
• | Mobile |
2020 (Unit : Korean won, VAT included)
Plan | Monthly Rate | |||||
5G Super Plan Choice | Premium Choice | 130,000 | ||||
Special Choice | 110,000 | |||||
Basic Choice | 90,000 | |||||
5G Simple | 69,000 | |||||
5G Slim | 55,000 | |||||
5G Save | 45,000 |
We launched the KT 5G Super Plan Choice on September 25, 2020, and added Netflix contents on them on October 28, 2020. We added the partnership benefit for the Hyundai Card holders on June 2, 2021 and Disney+ contents on October 5, 2021. And we also launched the 5G Simple and the 5G Save on October 5, 2020. |
2019 (Unit : Korean won, VAT included)
Plan | Monthly Rate | |||||
5G Super Plan | Premium | 130,000 | ||||
Special | 100,000 | |||||
Basic | 80,000 | |||||
5G Slim | 55,000 |
We launched the KT 5G Super Plan on April 5, 2019. |
• | IPTV IPT |
2021 (Unit : Korean won, VAT included)
Plan | Monthly Rate | Rate with 1 year term | Rate with 2 year term | Rate with 3 year term | Rate when IPTV and Broadband are combined | |||||||||||||||
Essence Plus | 28,160 | 26,730 | 25,300 | 22,484 | 18,700 | |||||||||||||||
VOD Plus | 29,150 | 27,775 | 26,510 | 23,980 | 20,900 | |||||||||||||||
TV Prime Super | 36,300 | 34,540 | 32,890 | 29,480 | 25,300 | |||||||||||||||
TV Netflix | ||||||||||||||||||||
UHD | 39,600 | 37,325 | 35,840 | 31,680 | 27,500 | |||||||||||||||
TV Prime | ||||||||||||||||||||
Home-school | 108,900 | 103,950 | 99,000 | 89,100 | 82,500 |
2020 (Unit : Korean won, VAT included)
8
Table of Contents
Plan | Monthly Rate | Rate with 1 year term | Rate with 2 year term | Rate with 3 year term | Rate when IPTV and Broadband are combined | |||||||||||||||
TV Basic | 18,150 | 17,270 | 16,390 | 14,740 | 12,100 |
We launched the TV Basic in April 2020. |
2019 – No change
2018 (Unit : Korean won, VAT included)
Plan | Monthly Rate | Rate with 1 year term | Rate with 2 year term | Rate with 3 year term | Rate when IPTV and Broadband are combined | |||||||||||||||
TV Essence | 25,300 | 24,035 | 22,770 | 20,240 | 16,500 | |||||||||||||||
TV Entertainment | 31,020 | 29,469 | 27,918 | 24,816 | 20,900 | |||||||||||||||
TV Prime Kids Land | 31,020 | 29,469 | 27,918 | 24,816 | 20,900 |
• | Broadband |
The below rate is an amount that does not reflect additional expenses such as modem rental fee.
2021 (Unit : Korean won, VAT included)
Plan | Monthly Rate | Rate with 1 year term | Rate with 2 year term | Rate with 3 year term | Rate with 3 year term when IPTV, mobile and Broadband are combined | |||||||||||||||
GiGA Wi Max 2.5G(ax) | 78,100 | 69,300 | 60,500 | 45,650 | 40,150 | |||||||||||||||
GiGA Wi Max 1G(ax) | 72,600 | 63,800 | 55,000 | 40,150 | 34,650 | |||||||||||||||
GiGA Wi Max 500M(ax) | 63,800 | 56,100 | 48,400 | 35,750 | 30,250 | |||||||||||||||
GiGA Wi Max 100M(ax) | 57,200 | 48,950 | 40,700 | 24,750 | 24,750 | |||||||||||||||
Multinet Essence | 60,500 | 53,900 | 48,400 | 44,000 | 38,500 | |||||||||||||||
Multinet Basic | 51,700 | 46,200 | 41,800 | 38,500 | 33,000 | |||||||||||||||
Multinet Slim | 45,100 | 39,600 | 34,100 | 27,500 | 27,500 |
The rates are the amount applied to the GiGA Wi Max 2.5G/1G/500M/100M plans with 3 year term when IPTV, mobile and Broadband are combined. The Multinet Essence/Basic/Slim rates are the amount applied to the 3 years term when multinet(TV) is combined |
2020 (Unit : Korean won, VAT included)
Plan | Monthly Rate | Rate with 1 year term | Rate with 2 year term | Rate with 3 year term | Rate with 3 year term when IPTV, mobile and Broadband are combined | |||||||||||||||
GiGA Wi Max 2.5G(ac) | 78,100 | 69,300 | 60,500 | 45,100 | 39,600 | |||||||||||||||
GiGA Wi Max 1G(ac) | 72,600 | 63,800 | 55,000 | 39,600 | 34,100 | |||||||||||||||
GiGA Wi Max 500M(ac) | 63,800 | 56,100 | 48,400 | 35,200 | 29,700 | |||||||||||||||
GiGA Wi Max 100M(ac) | 57,200 | 48,950 | 40,700 | 24,200 | 24,200 |
9
Table of Contents
The rates are the amount applied to the GiGA Wi Max 2.5G/1G/500M/100M plans with 3 year term when IPTV, mobile and Broadband are combined. |
2019 (Unit : Korean won, VAT included)
Plan | Monthly Rate | Rate with 1 year term | Rate with 2 year term | Rate with 3 year term | Rate with 3 year term when IPTV, mobile and Broadband are combined | |||||||||||||||
10 GiGA Max 10G | 110,000 | 99,000 | 93,500 | 88,000 | 77,000 | |||||||||||||||
the Internet that reassures the family (10 GiGA Max 2.5G) | 63,800 | 57,750 | 51,700 | 45,100 | 39,600 | |||||||||||||||
the Internet that reassures the family (GiGA Max 1G) | 58,300 | 52,250 | 46,200 | 39,600 | 34,100 | |||||||||||||||
the Internet that reassures the family (GiGA Max 500M) | 49,500 | 44,550 | 39,600 | 34,100 | 28,600 | |||||||||||||||
the Internet that reassures the family (Max 100M) | 42,900 | 37,400 | 31,900 | 23,100 | 23,100 | |||||||||||||||
the Internet plus that reassures the family (10 GiGA Max 2.5G) | 72,600 | 64,900 | 57,200 | 45,100 | 39,600 | |||||||||||||||
the Internet plus that reassures the family (GiGA Max 1G) | 67,100 | 59,400 | 51,700 | 39,600 | 34,100 | |||||||||||||||
the Internet plus that reassures the family (GiGA Max 500M) | 58,300 | 51,700 | 45,100 | 35,200 | 29,700 | |||||||||||||||
the Internet plus that reassures the family (Max 100M) | 51,700 | 44,550 | 37,400 | 24,200 | 24,200 |
The rate with 4 year term is 77,000 won. |
The plan names of the internet service changed since September 25, 2021
Classification | AS-IS | TO-BE | ||
Internet only | 10 GiGA MAX 10G | Internet Super Premium | ||
10 GiGA MAX 5G | Internet Premium Plus | |||
10 GiGA MAX 2.5G | Internet Premium | |||
GiGA MAX 1G | Internet Essence | |||
GiGA MAX 500M | Internet Basic | |||
GiGA MAX 200M | Internet Slim Plus | |||
GiGA MAX 100M | Internet Slim | |||
WiFi Package | 10G MAX 2.5G Plus | Internet Premium WiFi | ||
GiGA MAX 1G Plus | Internet Essence WiFi | |||
GiGA MAX 500M Plus | Internet Basic WiFi | |||
GiGA MAX 100M Plus | Internet Slim WiFi |
10
Table of Contents
GiGA Wi internet | GiGA Wi | Internet Wide | ||
the Internet that reassures the family | the Internet plus that reassures the family (10 GiGA Max 2.5G) | Internet Premium WiFi that reassures the family | ||
the Internet plus that reassures the family (10 GiGA Max 1G) | Internet Essence WiFi that reassures the family | |||
the Internet plus that reassures the family (10 GiGA Max 500M) | Internet Basic WiFi that reassures the family | |||
the Internet plus that reassures the family (10 GiGA Max 100M) | Internet Slim WiFi that reassures the family | |||
the Internet that reassures the family (10 GiGA Max 2.5G) | Internet Premium that reassures the family | |||
the Internet that reassures the family (10 GiGA Max 1G) | Internet Essence that reassures the family | |||
the Internet that reassures the family (10 GiGA Max 500M) | Internet Basic that reassures the family | |||
the Internet that reassures the family (10 GiGA Max 100M) | Internet Slim that reassures the family |
• | Fixed-line Telephone Services |
2019, 2020 and 2021 – No change
• | Bundled Rate Plans |
2021 | 2020 | 2019 | ||
<2021.04> ● Mobile bundle promotion ‘between friends’ - Equivalent discount benefit as the ‘Mobile bundle pack for my family’ for foreigners of same nationality
<2021.05> ● Renewal of the CEO Success Pack - Added mobile bundle service - Integrated VAN billing and relaxation of the discount condition
<2021.08> ● Promotion of the Premium Single bundling package - 25% discount of the mobile tariff for the service usage of over 500Mbps internet and 5G mobile plan over 80k Korean won (65,890 Korean won for LTE subscriber)
<2021.10> ● Pre-marriage Bundle Promotion - Lump sum discount of mobile service for soon to be married or newly married couple for maximum 6 months | <2020.04> ● Renewal of the Internet Telephony Home bundle plan - Change of the discount amount from 2,200 won to 1,100 won of the Internet Telephony Home bundle plan if bundled with Home Telephony with 3 year term
<2020.06> ● Renewal of the Home Telephony TPS bundle plan within home bundle - Change of the discount amount from 4,620 won to 1,320 won for grade 8 or higher of the Home Telephony bundle plan if bundled with TPS with 3 year term including IPTV
<2020.07> ● CEO Success Pack launch | <2019.04> ● Change of the bundled discount rate about fixed rate discount of 5G plan - Discount rate 10/15/20/25/30% to bundled mobile 1/2/3/4/5 line
<2019.08> ● 5G Premium Family bundle discount plan promotion (08.09~12.31) - Term : sign up at least two 5G mobile line starting from - benefit : 25% discount to over 80k for 5G mobile line and 66k for LTE mobile line. (Total amount discount plan is applied to below 80k for 5G mobile line or 66k for LTE mobile line.) |
11
Table of Contents
B. | Satellite TV – KT Skylife |
• | TV (Unit : Korean won, VAT Included) |
Service Type | 2021 | 2020 | 2011 | |||||||||||||||||
Satellite only | Android | sky UHD Family A+ | Receiving | 12,100 | 12,100 | — | ||||||||||||||
Bundle | 8,800 | 8,800 | — | |||||||||||||||||
sky UHD Blue A+ | Receiving | 14,300 | 14,300 | 14,300 | ||||||||||||||||
Bundle | 11,000 | 11,000 | 11,000 | |||||||||||||||||
sky UHD Green A+ | Receiving | 12,100 | 12,100 | 12,100 | ||||||||||||||||
Bundle | 8,800 | 8,800 | 8,800 | |||||||||||||||||
UHD | sky Family+ HD + sky UHD pack | Receiving | 12,100 | 12,100 | — | |||||||||||||||
Bundle | 8,800 | 8,800 | — | |||||||||||||||||
HD | Sky On+ HD | Receiving | 8,800 | 8,800 | 8,800 | |||||||||||||||
Bundle | 7,700 | 8,250 | 8,250 | |||||||||||||||||
OTS | — | UHD OTS Prime Kids Land /Entertainment (19) | Receiving | 20,900 | 20,900 | 20,900 | ||||||||||||||
UHD OTS Essence (15) | Receiving | 16,500 | 16,500 | 16,500 | ||||||||||||||||
UHD OTS Light (12) | Receiving | 13,200 | 13,200 | 13,200 | ||||||||||||||||
UHD OTS Slim (10) | Receiving | 11,000 | 11,000 | 11,000 | ||||||||||||||||
OTS Prime Kids Land /Entertainment (19) | Receiving | 20,900 | 20,900 | 20,900 | ||||||||||||||||
OTS Essence (15) | Receiving | 16,500 | 16,500 | 16,500 | ||||||||||||||||
OTS Light (12) | Receiving | 13,200 | 13,200 | 13,200 | ||||||||||||||||
OTS Slim (10) | Receiving | 11,000 | 11,000 | 11,000 | ||||||||||||||||
OTS Basic (11) | Receiving | 12,100 | 12,100 | — |
Receiving : The rate with 3 year term |
Bundle : The rate if bundled between TV and Broadband |
• | Broadband (Unit : Korean won, VAT Included) |
Service Type | 2021 | 2020 | 2019 | |||||||||||||||
Internet | Sky 100M | Service | 28,050 | 28,050 | 28,050 | |||||||||||||
Bundle | 19,800 | 19,800 | 19,800 | |||||||||||||||
Sky GiGA 200M | Service | 30,250 | 30,250 | 30,250 | ||||||||||||||
Bundle | 22,000 | 22,000 | 22,000 | |||||||||||||||
Sky GiGA 500M | Service | 33,000 | 33,000 | 33,000 | ||||||||||||||
Bundle | 27,500 | 27,500 | 27,500 | |||||||||||||||
Sky GiGA 1G | Service | 38,500 | 38,500 | 38,500 | ||||||||||||||
Bundle | 33,000 | 33,000 | 33,000 |
Service : The rate with 3 year term and the rate does not reflect additional fees such as rental, installation, etc. |
12
Table of Contents
Bundle : The rate if bundled between TV and Broadband |
The bundle rate of Sky 100M and Sky GiGA 200M are the amount applied to the AP rental discount promotion, 2,000 won. |
• | Mobile (Unit : Korean won, VAT Included) |
Service Type | 2021 | |||||||||
Mobile | Ultra Slim 500M/60min | Service | 1,900 | |||||||
Slim | Service | 4,400 | ||||||||
Economy | Service | 5,500 | ||||||||
Basic | Service | 9,900 | ||||||||
Special | Service | 19,800 | ||||||||
Phone Call Enough 300MB | Service | 8,800 | ||||||||
Phone Call Enough 5GB | Service | 20,900 | ||||||||
Data Enough 2.2GB+/100min | Service | 11,700 | ||||||||
Data Enough 5GB+/100min | Service | 14,300 | ||||||||
Data Enough 15GB+/300min | Service | 27,500 | ||||||||
Data Enough 15GB+/100min | Service | 25,300 | ||||||||
All Enough 0GB+ | Service | 11,000 | ||||||||
All Enough 1GB+ | Service | 12,650 | ||||||||
All Enough 2.5GB+ | Service | 15,400 | ||||||||
All Enough 7.0GB+ | Service | 16,900 | ||||||||
All Enough 11GB+ | Service | 33,000 | ||||||||
All Enough 11GB+ (Membership point) | Service | 35,200 | ||||||||
All Enough 11GB+ (Gifti-show) | Service | 35,200 | ||||||||
All Enough 11GB+ (Genie music) | Service | 35,200 | ||||||||
All Enough 100GB+ (Seezn OTT) | Service | 39,600 | ||||||||
All Enough 100GB+ (Game Box) | Service | 39,700 | ||||||||
5G All Enough 5GB | Service | 15,300 | ||||||||
5G All Enough 7GB | Service | 18,700 | ||||||||
5G All Enough 10GB | Service | 38,500 | ||||||||
Gold 500MB+ | Service | 4,900 | ||||||||
Gold 2GB+ | Service | 7,400 | ||||||||
Gold 4GB+ | Service | 10,400 | ||||||||
Enough Smart Data 10GB+ | Service | 10,800 | ||||||||
Enough Smart Data 20GB+ | Service | 14,100 | ||||||||
Interpark 10GB/100min | Service | 20,800 | ||||||||
Interpark 15GB/100min | Service | 27,300 | ||||||||
Interpark 11GB | Service | 35,000 |
C. | Others |
• | Others - Genie Music (Unit : Korean won, VAT excluded) |
Service Service Type | Products | 2021 | 2020 | 2019 | ||||||||||||
Music source service | Unlimited Streaming | Data Safe Music Streaming | 10,900 | 10,900 | — | |||||||||||
Music Streaming (PC+Mobile) | 8,400 | 8,400 | 8,400 | |||||||||||||
Smart Music Streaming (Mobile only) | 7,400 | 7,400 | 7,400 | |||||||||||||
Smart streaming + Download (30 songs) | — | 10,800 | 10,800 | |||||||||||||
MP3 Download + Unlimited Streaming | Smart streaming + Download (50 songs) | — | 15,000 | 15,000 | ||||||||||||
Download 5 songs | 3,000 | 3,000 | 3,000 | |||||||||||||
Download 10 songs | 5,500 | 5,500 | 5,500 | |||||||||||||
MP3 Download | Download 30 songs | — | 8,800 | 8,800 | ||||||||||||
Download 50 songs | — | 12,500 | 12,500 | |||||||||||||
Integrated Service | 1,000 times | 16,000 | 16,000 | 16,000 | ||||||||||||
300 times | 4,800 | 4,800 | 4,800 | |||||||||||||
Counted number of music listening | 100 times | 1,600 | 1,600 | 1,600 | ||||||||||||
20 times | 800 | 800 | 800 | |||||||||||||
Unlimited Music + e-book | Smart music streaming+e-book (Genie+ Millie’s library) | 13,000 | — | — |
13
Table of Contents
• | Others—KT CS (Unit : Korean won, VAT excluded) |
Item | 2021 | 2020 | 2018 | |||
114 directory assistance | 170 won (190 won at Night/Holidays) | 120 won (140 won at night/holidays) | ||||
Priority number assistance | 30,000 / month (Dong standard) |
“Dong” is Korea’s address classification system. |
The rate of 114 directory assistance is changed to 170 won at daytime and 190 won at Night/Holidays, respectively, since February 1, 2021. |
• | Others—KT IS (Unit : Korean won, VAT excluded) |
Item | 2021 | 2020 | 2019 | |||||||||||||||
114 directory assistance | 170 won (190 won at Night/Holidays) |
| | 120 won (140 won at Night/Holidays) |
| |||||||||||||
Monthly fixed rate | Group 1 | Group 2 | Group 3 | Group 4 | ||||||||||||||
“City”Unit | 55,000 | 53,000 | 50,000 | 45,000 | ||||||||||||||
“Gu”Unit | 44,000 | 42,000 | 40,000 | 36,000 | ||||||||||||||
Priority number assistance | “Dong”Unit | 33,000 | 31,000 | 30,000 | 27,000 |
“Gu” and “Dong” is Korea’s address classification system. |
Groups are classified by service district and the type of business. |
The rate of 114 directory assistance is changed to 170 won and 190 won of Day time and Night/Holidays, respectively, since February 1, 2021. |
• | Others—KT M mobile (Unit : Korean won, VAT included) |
Mobile (Postpaid)
14
Table of Contents
Products | 2021 | 2020 | 2019 | |||||||||||||||
Mobile (Postpaid) | <2021.02> 500 MB/100min
<2021.11> 5G 2GB/unlimited voice call 5G 4GB/unlimited voice call6 5G 2GB/unlimited voice call
<2021.12> 5G 10GB/unlimited voice call 5G 110GB/unlimited voice call6 5G 220GB/unlimited voice call |
|
18,000
25,500 29,000 33,000
50,000 69,000 74,000 |
| <2020.11> 3G 30MB/180min 3G 30MB (Voice-call) LTE Data 500M/60min LTE Data 500M/100min LTE Data 500M/200min LTE Data 500M/300min LTE Data 1G/60min LTE Data 1G/100min LTE Data 1G/200min LTE Data 1G/300min LTE Data 3G/100min LTE Data 3G/200min LTE Data 3G/300min |
|
26,400 34,100 19,800 20,900 23,100 25,300 22,000 23,100 25,300 27,500 29,700 31,900 34,100 |
| <2019.3> LTE Data 0MB/30min LTE 0MB (Voice-call) Economy Kids basic Economy Kids smart Economy junior study 1.5GB Economy junior study 3GB Economy junior smart 6GB Economy junior smart 10GB
<2019.4> Sky practical 1.2GB Sky practical 4GB Sky practical 6GB Sky practical 10GB+
<2019.8> LTE economy 3GB LTE economy 5GB
<2019.10> LTE reassurance 1.5G LTE reassurance 2.5G |
|
8,800 27,500 12,100 18,700 27,500 29,700 34,100 38,500 |
| ||||||
|
24,800 36,300 39,600 60,000
31,900 40,700
26,400 31,900 |
|
15
Table of Contents
Products | 2021 | 2019 | 2018 | |||||||||||||||
Usim only | <2021.01> | <2020.4> | <2019.4> | |||||||||||||||
(Postpaid) | Google play(15GB+100min) | 47,300 | LTE Basic | 38,500 | Data 15GB+/100min | 47,300 | ||||||||||||
Google play (11GB+call free) | 49,280 | LTE Economy 1GB | 33,000 | Economy universal rate | 19,900 | |||||||||||||
Google play (100GB+100min) | 66,000 | |||||||||||||||||
Unlimited 100GB +Game Box | 66,000 | <2020.5> | <2019.7> | |||||||||||||||
Data free 250M+ | 28,200 | Voice call free 1.5GB | 35,300 | |||||||||||||||
<2021.02> | Data free New 1GB+ | 33,000 | Voice call free 2.5GB | 43,500 | ||||||||||||||
Senior Relief 2GB+ | 28,000 | Data free 10GB+ | 33,800 | Voice call free 4.5GB | 47,500 | |||||||||||||
Senior Relief 4GB+ | 35,000 | |||||||||||||||||
Data Relief 3.5GB +110min | 26,400 | <2020.6> | <2019.8> | |||||||||||||||
Data Relief 5GB +110min | 31,900 | All free 1.4GB+ | 38,300 | Data sharing | — | |||||||||||||
Data free 6GB+/100min | 28,600 | |||||||||||||||||
<2021.03> | All free 100GB+(Seezn) | 66,000 | <2019.10> | |||||||||||||||
M plan 5GB/day+Seezn | 66,000 | Data free 100M+ | 16,500 | |||||||||||||||
<2020.7> | Data free reassurance | 23,650 | ||||||||||||||||
<2021.04> | Data free 15GB+ | 47,300 | 1GB+/100min | 29,150 | ||||||||||||||
Data Relief 15GB+300min | 55,000 | Economy Voice 3GB | 17,200 | Data free 3GB+ | 41,250 | |||||||||||||
Senior Relief 0.5GB+ | 22,000 | Economy Voice 5GB | 21,300 | Data free ON | 31,350 | |||||||||||||
Super saving 500MB/60min | 9,900 | Voice call free 300MB | ||||||||||||||||
Super saving 500MB/100min | 11,000 | <2020.9> | ||||||||||||||||
Super saving 1GB/60min | 13,200 | Voice free 6.5GB | 35,000 | <2019.11> | ||||||||||||||
Super saving 1GB/100min | 15,400 | All free 6GB+ | 42,900 | All free 3GB+ | 46,000 | |||||||||||||
Super saving 1.5GB/100min | 16,500 | All free 100GB+ | 66,000 | |||||||||||||||
Super saving 1.5GB/150min | 17,600 | <2020.10> | ||||||||||||||||
Super saving 2GB/200min | 19,800 | All 1.5GB/100min | 18,590 | <2019.12> | ||||||||||||||
Sharing data 120min | 5,500 | All 2GB/200min | 19,800 | 5G Slim M | 55,000 | |||||||||||||
Sharing data 240min | 7,700 | Data 2.4GB/100min | 17,600 | 5G Slim Special | 77,000 | |||||||||||||
Data 2.4GB/200min | 22,000 | |||||||||||||||||
<2021.06> | Data 3.5GB/100min | 23,100 | ||||||||||||||||
Unlimited data 10GB+180min | 32,500 | Data 3.5GB/200min | 27,500 | |||||||||||||||
Data 5GB/100min | 28,600 | |||||||||||||||||
<2021.07> | Data 5GB/200min | 30,800 | ||||||||||||||||
Unlimited data relief 1GB/300min | 24,000 | All reassurance+ | 20,900 | |||||||||||||||
Unlimited data relief 1GB/300min | 27,500 | All reassurance 1.5GB+ | 26,000 | |||||||||||||||
Unlimited data relief 5GB/300min | 32,500 | All reassurance 2.5GB+ | 27,500 | |||||||||||||||
All reassurance 4.5GB+ | 30,800 |
16
Table of Contents
Products | 2021 | 2019 | 2018 | |||||||||||||||
Usim only | All unlimited 7GB | 35,200 | ||||||||||||||||
(Postpaid) | All unlimited 11GB +Genie music | 51,000 | ||||||||||||||||
All unlimited 11GB +Gifti 5,000p | 51,000 | |||||||||||||||||
All unlimited 11GB +pay coupon 5,000p | 51,000 | |||||||||||||||||
5G unlimited call 5G | 33,000 | |||||||||||||||||
5G unlimited call 7G | 39,000 | |||||||||||||||||
5G simple M | 69,000 | |||||||||||||||||
Teenager unlimited data 1GB/300min | 32,000 | |||||||||||||||||
Teenager unlimited data 1GB | 35,000 | |||||||||||||||||
<2021.08> | ||||||||||||||||||
All and many 2.5GB/250min | 33,000 | |||||||||||||||||
All and many 2.5GB/250min | 33,000 | |||||||||||||||||
Unlimited data 15GB/100min(Genie music) | 56,100 | |||||||||||||||||
Unlimited data 15GB/100min(Giftishow 5,000p) | 56,100 | |||||||||||||||||
Unlimited data 15GB/100min(Pay coupon 5,000p) | 56,100 | |||||||||||||||||
Unlimited data 15GB/300min(Genie music) | 60,500 | |||||||||||||||||
Unlimited data 15GB/300min(Giftishow 5,000p) | 60,500 | |||||||||||||||||
Unlimited data 15GB/300min(Pay coupon 5,000p) | 60,500 | |||||||||||||||||
Data sharing 120min | 5,500 | |||||||||||||||||
Data sharing 240min | 7,700 | |||||||||||||||||
<2021.10> | ||||||||||||||||||
All unlimited 11GB+Blice | 51,000 |
17
Table of Contents
Mobile (Prepaid)
Mobile | <2021> | <2020> | <2019.5> | |||||||
(Prepaid) | No change in 2021 | No change in 2020 | LTE Free | — | ||||||
+ | PPS Data 1GB+ | 19,800 | ||||||||
PPS Data 10GB | 28,800 | |||||||||
PPS Data 15GB+ | 39,000 | |||||||||
<2019.8> | ||||||||||
PPS Data 300MB+ | 36,300 |
The prepaid rate plan is based on 30 days |
KT Studio Genie
A. Performance in Terms of Revenue (Unit: millions of Korean won, %)
Category | 2021 | |||||||
Amount | % | |||||||
Content Production | 10,578 | 89 | ||||||
Distribution Agency | 293 | 2 | ||||||
Other | 952 | 8 | ||||||
Total | 11,824 | 100 |
3. (Manufacturing Service) Sales
A. | ICT—KT |
(1) Performance in Terms of Revenue (Unit: millions of Korean won, %)
Category | 2021 | 2020 | 2019 | |||||||||||||||||||||
Amount | % | Amount | % | Amount | % | |||||||||||||||||||
Service revenue | 15,501,216 | 84.3 | 15,086,246 | 84.4 | 14,937,785 | 82.1 | ||||||||||||||||||
Merchandise sales | 2,886,218 | 15.7 | 2,793,035 | 15.6 | 3,266,966 | 18.0 | ||||||||||||||||||
Total | 18,387,434 | 100.0 | 17,879,281 | 100.0 | 18,204,751 | 100.0 |
(2) Sales Organization and Channels
Sales organization
<B2C>
18
Table of Contents
<B2B>
Sales Channels
<B2C>
19
Table of Contents
<B2B>
(3) 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 corporate customers, we negotiate contractual terms, such as supply conditions and services fees.
(4) 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 super 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. |
• | Differentiated service : The CS system optimized for smartphones, the benefits of reducing telecommunication charge through affiliated cards, and differentiated mobile phone insurance products. |
20
Table of Contents
(b) Broadband Internet Service
• | Solidifying a No.1 market stance with active GiGA investment and wire-wireless bundling competitiveness |
• | Market leading with 10G internet |
• | Suggest the new internet paradigm by introducing ‘GiGA Wi internet’ which comes with new concept of WiFi service, GiGA WiFi Buddy in the era of Post-Covid19 |
• | Strengthen the B2B market with Office IP Net security packages and POSNET products that are specialized for corporate customers. |
• | Increase sales synergies linked to GiGA infrastructure business such as 5G and IPTV |
• | Broaden internet business coverage such as low cost market with skylife internet resale |
• | Satisfying a diverse range of customer needs by providing differentiated value-added services such as GiGA WiFi home ax, GiGA WiFi Premium 2.4, Family Internet Security Package, etc. |
• | Provide a variety of customer convenience by providing customized products through analysis of customer usage patterns. |
Acquire lots of new lines by utilizing B2C/B2C order business such as installment business for expanding for mobile infrastructure.
(c) Telephone Service
• | Preemptive care activities to minimize customer churn : |
• | Uncombined customers using the Internet and TV products : Service bundling propulsion |
• | Customer who need home telephony service : Promoting KT telephony 3000 price plan |
• | Customer who did re-contract VoIP service : Promoting KT VoIP 3000 price plan |
• | SOHO, small business customer : 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 |
• | Efforts to secure new customers by providing differentiated services : |
• | VoIP device D2 release(July, 2017) : Provide user convenience, including support for Google Address Book |
(d) IPTV Service
• | Introducing products that reflect customer preferences |
• | Based on AI, organizing personalized content and strengthening the recommendation |
21
Table of Contents
• | Differentiation of technologies such as subminiature and wireless set-top box(UHD4), voice-based user interface. |
B. Satellite Business (KT skylife)
(1) Performance in Terms of Revenue (Unit: millions of Korean won, %)
Category | 2021 | 2020 | 2019 | |||||||||||||||||||||
Amount | % | Amount | % | Amount | % | |||||||||||||||||||
Service revenue | 364,983 | 55.7 | 349,277 | 52.9 | 334,016 | 50.7 | ||||||||||||||||||
Platform revenue | 219,218 | 33.5 | 216,968 | 32.9 | 236,353 | 35.9 | ||||||||||||||||||
Others | 71,153 | 14.3 | 94,159 | 14.3 | 87,928 | 13.4 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total | 655,354 | 100.0 | 660,404 | 100.0 | 658,297 | 100.0 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
The above numbers are written on a separate basis. |
2020 and 2019 was written in accordance with K-IFRS 1116, but 2018 was written in accordance with the previous Standard, K-IFRS 1017. |
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, 213 sales offices which are further organized under 9 branches (three in Seoul, two in Busan and one each in Daejeon, Daegu, Gwangju and etc.) and 2 local office (one each in Jeonju, Daejeon), KT.
Sales offices perform sales and services through consignment contracts with KT Skylife, and 2 customer centers(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.
As of the end of December 2021, sales by route are as follows (Accumulated from January to December 2021)
Category | New Subscribers | % | ||||||
Sales office | 216,473 | 69.2 | ||||||
KT | 8,175 | 2.6 | ||||||
Headquarter, customer center | 87,952 | 28.1 | ||||||
|
|
|
| |||||
Total | 312,600 | 100.0 | ||||||
|
|
|
|
C. Others Business
KT Sat
(1) Performance in Terms of Revenue (Unit: millions of Korean won, %)
22
Table of Contents
Category | 2021 | 2020 | 2019 | |||||||||||||||||||||
Amount | % | Amount | % | Amount | % | |||||||||||||||||||
Gap filler rentals | 102,372 | 58.6 | 96,853 | 55.8 | 90,244 | 53.7 | ||||||||||||||||||
Data transmission | 24,565 | 14.1 | 20,778 | 12.0 | 12,205 | 7.3 | ||||||||||||||||||
Video transmission | 8,161 | 4.7 | 9,467 | 5.5 | 10,326 | 6.2 | ||||||||||||||||||
Mobile satellite service | 22,051 | 12.6 | 20,059 | 11.6 | 16,536 | 9.8 | ||||||||||||||||||
Others | 17,506 | 10.0 | 26,391 | 15.2 | 38,698 | 23.0 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total | 174,655 | 100.0 | 173,548 | 100.0 | 168,009 | 100.0 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
2020 and 2019 were written in accordance with K-IFRS 1116, but 2018 was written in accordance with the previous Standard, K-IFRS 1017. |
(2) Sales Organization and Channels
KT SAT’s sales organization manages and operates customers by region. Due to the nature 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 Estate
(1) Performance in Terms of Revenue (Unit: millions of Korean won, %)
Category | 2021 | 2020 | 2019 | |||||||||||||||||||||
Amount | % | Amount | % | Amount | % | |||||||||||||||||||
PM fee | 99,424 | 29.6 | 7,753 | 2.2 | 23,663 | 4.9 | ||||||||||||||||||
Rental business | 160,212 | 47.8 | 156,784 | 33.4 | 160,283 | 33.4 | ||||||||||||||||||
Real estate commission business | 75,737 | 22.6 | 134,057 | 39.2 | 188,004 | 39.2 | ||||||||||||||||||
Development business | — | — | 61,360 | 22.5 | 107,923 | 22.5 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total | 335,373 | 100.0 | 359,954 | 100.0 | 479,873 | 100.0 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
KT alpha (Former KT Hitel)
(1) Performance in Terms of Revenue (Unit: millions of Korean won, %)
Category | 2021 | 2020 | 2019 | |||||||||||||||||||||
Amount | % | Amount | % | Amount | % | |||||||||||||||||||
T-Commerce(K Shopping) | 307,181 | 65.2 | 228,424 | 65.4 | 182,947 | 56.8 | ||||||||||||||||||
Mobile Gift Commerce | 32,056 | 6.8 | ||||||||||||||||||||||
Content Distribution | 43,769 | 9.3 | 37,486 | 10.7 | 60,803 | 18.9 | ||||||||||||||||||
ICT Platform | 88,471 | 18.8 | 83,404 | 23.9 | 78,571 | 24.4 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total | 471,477 | 100.0 | 349,314 | 100.0 | 322,321 | 100.0 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
The revenue of Mobile Gift Commerce was separated from T- Commerce and disclosed in 2021. |
23
Table of Contents
(2) Sales Organization and Channels
(a) 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.
(c) Content
The content supply and demand representative make copyright agreements with the content creator or distributor. And we provide content VOD or library services to 150 platform companies such as IPTV, OTT, and Internet web hard.
(d) ICT
Most of ICT business is related to installment business (ex. IT Project). For this reason, this report does not disclose its own sales organization and channels.
Genie Music
(1) Performance in Terms of Revenue (Unit: millions of Korean won, %)
2021 | 2020 | 2019 | ||||||||||||||||||||||
Category | Amount | % | Amount | % | Amount | % | ||||||||||||||||||
Music business | 235,257 | 96.4 | 236,652 | 95.8 | 222,165 | 96.4 | ||||||||||||||||||
Others | 8,696 | 3.6 | 10,316 | 4.2 | 8,304 | 3.6 | ||||||||||||||||||
Total | 243,954 | 100.0 | 246,968 | 100.0 | 230,469 | 100.0 |
Music Business: Regular Music services and distribution of content |
Others: Irregular music service development service and Artist-related MD sales |
(2) Sales Organization and Channels
Genie Music serves as a service provider and content distributor within the digital music industry.
(a) Service provider
Genie Music provides streaming and downloading services through our own misic platform Genie. B2B music service is to provide music listening services to wireless customers of KT and LGU+, shareholders. We also provide store music services(Shop & Genie) to offline stores.
(b) Content distributor
Genie Music supplies content distributed by us to other providers’ music platforms.
24
Table of Contents
(c) Music Business (Music Services and 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.
Genie Music has signed a contract with other music services companies to distribute content which is secured by the network with record label and music companies.
(d) Others (IT development service, MD and etc.)
Genie Music generates IT development revenue through the contract by IT projects with private companies. Also, In terms of MD revenue, the company is selling the MD products (which are bought or imported from MD vendor) to the online and offline stores.
KT Telecop
(1) Performance in Terms of Revenue (Unit: millions of Korean won, %)
Category | 2021 | 2020 | 2019 | |||||||||||||||||||||
Amount | % | Amount | % | Amount | % | |||||||||||||||||||
Security service | 502,075 | 98.3 | 380,575 | 97.5 | 319,062 | 96.3 | ||||||||||||||||||
Distribution | 8,318 | 1.6 | 9,098 | 2.3 | 11,482 | 3.5 | ||||||||||||||||||
Others | 608 | 0.1 | 660 | 0.2 | 673 | 0.2 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total | 511,001 | 100.0 | 390,333 | 100.0 | 331,217 | 100.0 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(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: millions of Korean won, %)
Category | 2021 | 2020 | 2019 | |||||||||||||||||||||||
Amount | % | Amount | % | Amount | % | |||||||||||||||||||||
Advertising | Online DA (PC, Mobile) | 51,282 | 59.6 | 43,892 | 53.5 | 41,470 | 52.9 | |||||||||||||||||||
Mobile platform | 26,330 | 29.7 | 20,895 | 25.4 | 24,274 | 31.0 | ||||||||||||||||||||
Digital broadcasting (IPTV) | 6,601 | 7.4 | 7,318 | 8.9 | 1,921 | 2.5 | ||||||||||||||||||||
Digital outdoor | 2,881 | 3.2 | 9,895 | 12.1 | 10,669 | 13.6 | ||||||||||||||||||||
Commerce | 1,561 | 1.8 | — | — | 3 | 0.0 | ||||||||||||||||||||
Financial Lease | 71 | 0.1 | 58 | 0.1 | 36 | 0.0 | ||||||||||||||||||||
Total | 88,726 | 100.0 | 82,058 | 100.0 | 78,373 | 100.0 |
The above numbers are written on a separate basis. |
(2) Sales Organization and Channels
The online advertising industry can be divided into three areas: advertising companies, media reps, and media. Media reps generate revenue by selling media.
25
Table of Contents
Nasmedia and its major subsidiaries generally deal with advertisers, advertising agencies, and media companies.
KT Studio Genie
(1) Performance in Terms of Revenue (Unit: millions of Korean won, %)
Category | 2021 | |||||||
Amount | % | |||||||
Content Production | 10,578 | 89.5 | ||||||
Distribution Agency | 293 | 2.5 | ||||||
Other | 952 | 8.0 | ||||||
Total | 11,824 | 100.0 |
(2) Sales Organization and Channels
KT Studio Genie’s main business are producing and selling media content (drama). For this reason, this report does not disclose the sales organization and channels information.
4. (Manufacturing Service) Other References
Matters related to the discharge of environmental substances or environmental protection
KT was designated as a company subject to the Greenhouse Gas Emissions Trading System, which has been in effect since 2015 under the ‘ Framework Act on Low Carbon Green Growth’ and ‘Act on Allocation and Transaction of Greenhouse Gas Emissions’.
In 2018, KT was allocated a greenhouse gas emission allowance from the government, and we continue to reduce Greenhouse Gas emissions.
KT’s greenhouse gas emissions are mainly due to the heating and cooling energy of office buildings nationwide and the use of electricity in telecommunication facilities, such as base stations, and repeaters. By 2050, we have set a goal to meet carbon neutrality.
5. (Finance) Business Overview
Under Specialized Credit Finance Business Act of Korea, business areas of BC Card are 1) soliciting and managing credit card member merchants, 2) credit card transaction processing, which is settling balances of the credit card payment, and 3) issuing and managing credit cards for credit finance companies. Also, it is a credit finance company providing funding service, insurance, retail business via telephone, mail order or online, and tourism service.
26
Table of Contents
A. Performance in Terms of Revenue (Unit: KRW million, %)
Category | 2021 | 2020 | 2019 | |||||||||||||||||||||
Amount | % | Amount | % | Amount | % | |||||||||||||||||||
Card processing revenue | 3,154,561 | 88.1 | 2,961,791 | 87.4 | 3,077,807 | 87.1 | ||||||||||||||||||
Service fee revenue | 176,610 | 4.9 | 199,934 | 5.9 | 217,014 | 6.1 | ||||||||||||||||||
Additional business fee revenue | 68,972 | 1.9 | 77,032 | 2.3 | 84,217 | 2.4 | ||||||||||||||||||
Member Service Fee revenue | 57,182 | 1.6 | 49,860 | 1.5 | 51,562 | 1.5 | ||||||||||||||||||
Card revenue | 9,051 | 0.3 | 4,591 | 0.1 | 4,506 | 0.1 | ||||||||||||||||||
Financial revenue | 29,935 | 0.9 | 24,186 | 0.7 | 22,831 | 0.6 | ||||||||||||||||||
Foreign currency-related profit | 4,062 | 0.1 | 4,679 | 0.1 | 23,813 | 0.6 | ||||||||||||||||||
Other operating revenue | 79,065 | 2.2 | 67,986 | 2.0 | 55,428 | 1.6 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total | 3,579,438 | 100.0 | 3,390,059 | 100.0 | 3,537,178 | 100.0 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
The above numbers are written on a K-IFRS consolidated basis. |
B. Sales Organization and Channels
BC Card is engaged in the issuance and purchase of credit cards (including check cards) based on the basic contracts with card companies. In addition, we are expanding credit card business by acquiring new customers other than existing member companies.
C. Major Management Contracts
(1) Contracting Party: K Bank
1) Contract contents: Capital increase of K Bank
2) Date: 2021. 7. 9
3) Number of shares acquired: ordinary shares of 65,377,980
4) Acquisition amount: KRW 424,957 million
(2) Contracting Party: INITECH Co., Ltd.
1) Contract contents: Acquisition of shares of SMARTRO
2) Date: 2021. 12. 29
3) Number of shares acquired: 626,736 shares
4) Acquisition amount: KRW 96,842 million
7. (Finance) Derivatives Transaction
For this term, Company gave drag-along rights to financial investors participating in capital raise of K Bank. In case K Bank fails in IPO at an agreed conditions, financial investors can exercise drag-along rights and Company can accept those or exercise a right of claim for sale. In case financial investors exercise drag-along rights, Company should exercise a right of claim for sale or guarantee agreed profit margin.
A. Derivatives at 4Q21 and 3Q21
(Unit: KRW million)
Item | 4Q21 | 3Q21 | ||||||||||||||
Asset | Liability | Asset | Liability | |||||||||||||
Drag-along Right | — | 158,284 | — | — |
27
Table of Contents
B. Profit and Loss related with Derivatives at 4Q21 and 3Q21
(Unit: KRW million)
Item | 4Q21 | 3Q21 | ||||||||||||||
Profit and Loss from valuation | Profit and Loss from Transaction | Profit and Loss from valuation | Profit and Loss from Transaction | |||||||||||||
Drag-along Right | 47,039 | — | — | — |
8. (Finance) Business Facilities
A. Branch offices and other establishments
(Unit: KRW million)
Region | Branch office | Sales office | Office | Sum | ||||||||||||
Seoul | — | — | — | — | ||||||||||||
Gyeonggi-do | — | — | — | — | ||||||||||||
Chungcheong-do | — | — | — | — | ||||||||||||
Gangwon-do | — | — | — | — | ||||||||||||
Gyeongsang-do | 2 | — | 1 | 3 | ||||||||||||
Jeolla-do | 1 | — | 1 | 2 | ||||||||||||
Jeju-do | — | — | 1 | 1 | ||||||||||||
Sum | 3 | — | 3 | 6 |
B. Equipment and other assets
(Unit: KRW million)
Item | Property | Building | Sum | Note | ||||||||||||
Main office | 310,041 | 186,076 | 496,117 | — | ||||||||||||
Branch office | 465 | 2,989 | 3,454 | — | ||||||||||||
Sum | 310,506 | 189,065 | 499,571 | — |
Main office includes real estate for investment (based on acquisition cost) |
9. (Finance) Financial Stability
[Major Management Index]
Items | 2020 | 2019 | 2018 | Formula | ||||||||||||
Capital Adequacy | Adjusted Equity Ratio | 35.80 | 44.19 | 34.40 | Adjusted Equity/ Adjusted Total Assets x 100 | |||||||||||
Tangible Common Equity Ratio | 35.44 | 41.43 | 32.07 | Equity/Total Assets x 100 | ||||||||||||
Asset Quality | Loss Risk Weighted Non-performing Loans Ratio | 0.08 | 0.12 | 0.11 | Weighted Non-performing Loans/ Total Loans x 100 | |||||||||||
Substandard Loans Ratio | 0.11 | 0.15 | 0.13 | Substandard Loans/ Total Loans x 100 | ||||||||||||
Loan Loss Provision Ratio | 171.83 | 158.34 | 131.35 | Loan Loss Provision Balance/ Required Provision Amount x 100 |
28
Table of Contents
Profitability | Return on Asset | 2.47 | 2.15 | 3.06 | Net profit / Total Assets x 100 | |||||||||||
Return on Equity | 7.46 | 6.32 | 9.55 | Net profit/ Equity x 100 | ||||||||||||
Expenses to Total Assets | 5.44 | 6.24 | 4.67 | Total expenses/ Total Assets x 100 | ||||||||||||
Liquidity | Liquidity Ratio | 114.90 | 112.27 | 106.08 | Current Asset/ Current Liability x 100 (Due in 90 days) | |||||||||||
Operating Assets Ratio | 36.31 | 38.25 | 41.22 | Operating Asset/ Equity |
A. Characteristics of the Industry
Credit card business involves issuing and managing credit cards, settling card balances derived from the usage of the card holders, and managing credit card member stores. Credit card business generates revenues through transaction fee, annual fees, financial loans, and others. If a company desires to enter into the credit card business, government licensing is required. Also, government regulations are strict, so this industry has an extremely high barriers to entry.
B. Growth of the Industry
In early 2000, the credit card business grew exponentially with the supportive policies of the Korean government. However, since 2010, the industry is entering into the maturity stage. The growth in number of member stores is slowing down and the average payment amount is decreasing.
C. Characteristics of Economic Cycle and Seasonality
The credit card industry is a typical domestic business which is highly affected by the private consumption trend and overall economic conditions.
D. Market Conditions
(1) Market Stability
(a) Number of Credit Card and Member Merchant Store
Category | Population (in 10K) | Population Available for Economic Activity*1 (in 10K) | Credit Card (in 10K) | Number of Credit Card Per Capital | Number of Member Stores*2 (in 10K) | |||||||||||||||
2015 | 5,101 | 2,715 | 9,314 | 3.4 | 242 | |||||||||||||||
2016 | 5,125 | 2,742 | 9,564 | 3.5 | 250 | |||||||||||||||
2017 | 5,145 | 2,775 | 9,946 | 3.6 | 257 | |||||||||||||||
2018 | 5,164 | 2,758 | 10,506 | 3.8 | 269 | |||||||||||||||
2019 | 5,171 | 2,819 | 11,098 | 3.9 | 281 | |||||||||||||||
2020 | 5,178 | 2,801 | 11,373 | 4.1 | 290 | |||||||||||||||
2021.2Q | 5,182 | 2,860 | 11,546 | 4.0 | — |
Source : Credit Finance Association, Korea |
*1 | Age 15 or order and must be eligible for employment activity |
*2 | At least one sales transaction incurred annually from a member store |
Accumulated number of credit card issuance is 115,460,000 as of 2Q21. Average credit card holdings of economically active population is 4 cards per person and the number of member merchant stores is 2.9 million as of the end of 2020
29
Table of Contents
(b) Credit Card Usage in Korea (Unit : KRW billion)
Credit Card Usage | Credit Card Usage over Private Consumption Expenditure* | |||||||||||||||||||
Category | Total | Lump-Sum Payment | Installment Payment | Card Loan (Short-term) | ||||||||||||||||
2015 | 594,434.5 | 435,612.7 | 99,318.8 | 59,503.0 | 60.9 | % | ||||||||||||||
2016 | 655,361.0 | 489,442.9 | 106,589.2 | 59,328.9 | 66.3 | % | ||||||||||||||
2017 | 686,608.0 | 512,081.2 | 115,260.6 | 59,266.2 | 67.0 | % | ||||||||||||||
2018 | 724,781.5 | 539,284.6 | 124,728.6 | 60,768.3 | 68.4 | % | ||||||||||||||
2019 | 760,075.9 | 572,183.9 | 128,768.1 | 59,123.9 | 71.7 | % | ||||||||||||||
2020 | 705,246.4 | 572,943.2 | 132,303.3 | 54,083.6 | 75.2 | % | ||||||||||||||
2021. 2Q | 402,350.7 | 305,201.0 | 70,015.7 | 27,134.0 | 77.3 | % |
Source: Credit Finance Association, Korea |
Credit card usage is in uptrend and the portion of credit card as a payment method is in very high level as the credit card usage over private consumption expenditure exceeds 70% as of 2Q21.
(2) Competition
(a) Competing Companies:
Samsung Card, Hyundai Card, Lotte Card, Shinhan Card, Woori Card, KB Card and Hana Card etc.
(b) Competition Factors:
The number of member card issuers, card transactions, member stores and card issuance
(3) Market Share
Category | 2021 | 2020 | 2019 | |||||||||
Card transaction M/S | 23.05 | % | 23.5 | % | 24.1 | % |
* | Source: BC Card’s internal data |
E. Competitiveness
In credit card business, solicitation of member merchant stores, development of products and services, customer segment focused marketing services and risk management capabilities for stable asset portfolio are key management factors. With the technological advancement, boundary of financial services has become more abstract, and digital payment market has grown bigger in which competition among financial service providers are increasing. BC Card has lower credit card industry specific risk like deterioration risk of asset soundness while BC card focuses on core business, credit card processing business, and most of its receivables are from high credit institutions like banks and credit card companies. Based on strong foothold in credit card transaction processing market, BC card has built stable revenue stream from middle and small card issuers, which are not available of economy of scale. Moreover, BC Card continues its efforts to provide easy and convenient financial life through simple payment service based on mobile platform ‘paybooc’ and various financial services.
F. Price change of Major services
In credit card business, solicitation of member merchant stores, development of products and services, customer segment focused marketing services and risk management capabilities for stable asset portfolio are key management factors. With the technological advancement, boundary of financial services has become more
30
Table of Contents
abstract, and digital payment market has grown bigger in which competition among financial service providers are increasing. BC Card has lower credit card industry specific risk like deterioration risk of asset soundness while BC card focuses on core business, credit card processing business, and most of its receivables are from high credit institutions like banks and credit card companies. Based on strong foothold in credit card transaction processing market, BC card has built stable revenue stream from middle and small card issuers, which are not available of economy of scale. Moreover, BC Card continues its efforts to provide easy and convenient financial life through simple payment service based on mobile platform ‘paybooc’ and various financial services.
(Unit: %)
Item | 2021 | 2020 | 2019 | |||||||||
Member merchant commission rate | 0.8~2.3 | 0.8~2.3 | 0.8~2.3 | |||||||||
Installment commission rate | 11.0~18.5 | 11.0~18.5 | 11.0~18.5 | |||||||||
Cash advance interest rate | 7.9~23.3 | 7.9~23.3 | 7.9~23.3 |
G. Intellectual Property
As of 31st December 2021, BC card has total 135 patents for core business and most of them are credit card payment methods, transaction authorization and others. Also, BC card has total 797 trademark rights and major trademarks are like below.
Item | Acquisition date | Brand Name | Register Number | Applicable Law | ||||||||||||
Trademark rights | 2010.12.02 | BC card | 0204148 | Trademark act |
10. Research and Development Activities
A. R&D Costs—Consolidated Basis (Unit: millions of Korean won, %)
Category | 2021 | 2020 | 2019 | |||||||||
Raw Materials | — | — | — | |||||||||
Labor Costs | 83,774 | 82,225 | 76,433 | |||||||||
Depreciation | 22,685 | 20,732 | 29,586 | |||||||||
Commissions | — | — | — | |||||||||
Others | 97,673 | 120,477 | 147,502 | |||||||||
Total R&D Costs (( 1) | 213,969 | 230,473 | 253,521 | |||||||||
(Subsidy from Government) | 8 | 211 | 37 | |||||||||
Accounting Research and Ordinary Development Costs | 168,969 | 156,940 | 165,028 | |||||||||
Treatment Development Costs (Intangible Assets) | 44,992 | 73,322 | 88,456 | |||||||||
Percentage of R&D Costs over Revenue ( 2) | 0.68 | % | 0.66 | % | 0.68 | % |
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)
● | Institute of Convergence Technology |
31
Table of Contents
● | Main Mission |
• | Securing core technologies to strengthen future business and business competitiveness |
• | Establishing mid- and long-term technology strategies for leading future technologies |
• | Developing competitive technologies and supporting commercialization to strengthen business competitiveness |
• | Developing and securing core technologies for mid- to long-term future |
• | NW Platformer based on Smart Connectivity and market&customers |
• | Development of network efficiency and optimization technology to strengthen infrastructure competitiveness |
• | Realization of operation excellence based on AI/SDN2.0 and completion of intelligent control operating system |
• | Development of core technology for OSP stable operation/quantum cryptography service |
• | Research and development of 5G Access/Core network and 5G Mobility technology |
• | 5G core/wireless/control intelligence technology and SW-based infrastructure innovation |
• | KT Network Technology Innovation Through R&D of Next Generation Network Technology |
• | Developing next-generation wireless core technologies and solutions to enhance competitiveness in the wireless business |
• | Development of Network Efficiency and Optimization Technology for the Competitiveness of GiGA Infra Research technology for next generation network |
• | Development and Commercialization of Edge-Based IT Architecture + NW Infra Based on SDN |
• | AI service and media service fast delivery and AI voice/language core engine development |
32
Table of Contents
• | Technology development for AICC, GiGA Genie and Fast Delivery of AI service |
• | AI media service/platform technology development for IPTV and Seezn business delivery |
• | Development of language intelligence core engine (conversation/inference/search) |
• | Voice/complex intelligence core engine (voice recognition/synthesis/recommendation/TA) development |
• | Innovate B2X business through customer-centered platform technology differentiation |
• | Develop differentiated Biz solution/platform for enterprise business innovation |
• | Developing DX solutions/platforms differentiated by industry such as factories, buildings, and logistics |
• | Development of industry AI core technologies/services such as digital twin, vision, and sound |
• | Establish an efficient and agile commercialization system of future technologies based on customer self-innovation |
• | Future technology sensing/analysis and commercialization item discovery |
• | Discover new BM/services from the perspective of customer/market value and execute pretotyping/PoC |
• | Securing the basis for promoting the Big Thing business through cooperation/sourcing with key partners |
• | Realization in Fast Delivery from discovery of future growth engines to commercialization through ‘innovation pipeline’ based on AI Core technology |
• | Discovering convergence future growth engines |
• | No. 1 AI Core technology competency |
• | Fast Delivery as a new growth business |
11. Other Matters Necessary for Making Investment Decisions
A. Intellectual Property Rights (as of December 31, 2021)
• | ICT (KT) |
KT holds 4,341 domestic patents, 4,077 overseas patents and 1,706 trademarks.
33
Table of Contents
• | Others |
KT Skylife holds 16 patents.
KT Hitel holds 83 patents.
Genic music holds 5 domestic patents and 69 trademarks.
KT Telecop holds 37 patents, 5 designs and 72 trademarks.
KTCS holds 1 patent.
KT M-mobile holds 3 trademarks.
Nasmedia holds 2 patents and 3 trademarks
PlayD holds 5 domestic patents.
KTDS holds 8 patents, 7 trademarks, 2 service marks and 12 trade/service marks
Initech holds 37 patents and 35 trademarks.
VP holds 22 patents
1. Summary of Financial Statements (Consolidated) (Unit : millions of Korean won)
2021 | 2020 | 2019 | ||||||||||
Current Assets | 11,858,350 | 11,154,180 | 11,897,229 | |||||||||
• Cash and Cash Equivalents | 3,019,592 | 2,634,624 | 2,305,894 | |||||||||
• Trade and Other Receivables | 5,087,490 | 4,902,471 | 5,906,445 | |||||||||
• Inventories | 514,145 | 534,636 | 665,498 | |||||||||
• Other Current Assets | 3,237,123 | 3,082,449 | 3,020,418 | |||||||||
Non-current Assets | 25,300,991 | 22,508,365 | 22,642,869 | |||||||||
• Trade and Other Receivables | 1,091,326 | 1,250,769 | 1,181,797 | |||||||||
• Property, plant and equipment | 14,464,886 | 14,206,119 | 13,785,299 | |||||||||
• Investment Property | 1,720,654 | 1,368,453 | 1,387,430 | |||||||||
• Intangible Assets | 3,447,333 | 2,161,258 | 2,834,037 | |||||||||
• Investments in Joint Ventures and Associates | 1,288,429 | 557,881 | 267,660 | |||||||||
• Other Non-Current Assets | 3,288,363 | 2,963,885 | 3,186,646 | |||||||||
|
|
|
|
|
| |||||||
Total Assets | 37,159,341 | 33,662,545 | 34,540,098 | |||||||||
|
|
|
|
|
| |||||||
Current Liabilities | 10,072,432 | 9,192,472 | 10,148,056 | |||||||||
Non-Current Liabilities | 10,519,748 | 8,918,640 | 9,208,494 | |||||||||
Total Liabilities | 20,592,180 | 18,111,112 | 19,356,550 | |||||||||
Capital Stock | 1,564,499 | 1,564,499 | 1,564,499 | |||||||||
Share Premium | 1,440,258 | 1,440,258 | 1,440,258 | |||||||||
Retained Earnings | 13,287,390 | 12,155,420 | 11,633,780 | |||||||||
Accumulated Other Comprehensive Expense | 117,469 | 86,051 | 194,934 | |||||||||
Other Components of Equity | (1,433,080 | ) | (1,234,784 | ) | (1,170,083 | ) | ||||||
Non-Controlling Interests | 1,590,625 | 1,539,989 | 1,520,160 | |||||||||
|
|
|
|
|
| |||||||
Total Equity | 16,567,161 | 15,551,433 | 15,183,548 | |||||||||
|
|
|
|
|
|
2021 | 2020 | 2019 | ||||||||||
Operating Revenue | 24,898,005 | 23,916,667 | 24,342,064 | |||||||||
Operating Profit | 1,671,824 | 1,184,107 | 1,159,566 | |||||||||
Profit for the Period | 703,392 | 703,392 | 665,942 | |||||||||
Owners of the Controlling Company | 1,356,878 | 658,025 | 615,777 | |||||||||
Non-controlling interest | 102,517 | 45,367 | 50,165 |
34
Table of Contents
Earnings per share attributable to the equity holders of the Controlling Company during the year (in Korean won): | ||||||||||||
Basic earnings per share | 5,759 | 2,684 | 2,512 | |||||||||
Diluted earnings per share | 5,747 | 2,683 | 2,510 | |||||||||
Number of Consolidated Companies | 79 | 64 | 65 |
2. Summary of Financial Statements (Separate) (Unit : millions of Korean won)
2021 | 2020 | 2019 | ||||||||||
Current Assets | 7,167,047 | 7,155,734 | 7,235,243 | |||||||||
• Cash and Cash Equivalents | 1,708,714 | 1,541,210 | 1,328,397 | |||||||||
• Trade and Other Receivables | 3,092,397 | 3,127,040 | 3,231,008 | |||||||||
• Other Financial Assets | 104,062 | 268,046 | 100,830 | |||||||||
• Inventories | 289,345 | 353,310 | 477,138 | |||||||||
• Other Current Assets | 1,972,529 | 1,866,128 | 2,097,870 | |||||||||
Non-Current Assets | 22,195,322 | 20,872,192 | 20,977,417 | |||||||||
• Trade and Other Receivables | 750,820 | 1,080,282 | 1,063,440 | |||||||||
• Other Financial Assets | 591,201 | 180,780 | 179,240 | |||||||||
• Property and equipment | 12,021,117 | 11,999,717 | 11,447,952 | |||||||||
• Right-of-use assets | 1,078,129 | 1,152,153 | 1,194,800 | |||||||||
• Investment Property | 997,344 | 735,563 | 769,019 | |||||||||
• Intangible Assets | 2,236,564 | 1,583,456 | 2,239,882 | |||||||||
• Investments in Subsidiaries, Associates and Joint Ventures | 3,816,915 | 3,505,017 | 3,501,391 | |||||||||
• Other Non-Current Assets | 635,224 | 635,224 | 581,693 |
Total Assets | 29,362,369 | 28,027,926 | 28,212,660 | |||||||||
Current Liabilities | 6,968,720 | 6,607,967 | 6,801,252 | |||||||||
Non-Current Liabilities | 8,528,755 | 8,518,112 | 8,518,112 | |||||||||
|
|
|
|
|
| |||||||
Total Liabilities | 15,497,475 | 14,824,369 | 15,319,364 | |||||||||
|
|
|
|
|
| |||||||
Capital Stock | 1,564,499 | 1,564,499 | 1,564,499 | |||||||||
Share Premium | 1,440,258 | 1,440,258 | 1,440,258 | |||||||||
Retained Earnings | 11,233,714 | 11,233,714 | 10,866,582 | |||||||||
Accumulated Other Comprehensive Income | 125,610 | 42,906 | 23,449 | ) | ||||||||
Other Components of Shareholders’ Equity | (1,077,820 | ) | (1,001,492 | ) | (1,001,492 | ) | ||||||
|
|
|
|
|
| |||||||
Total Equity | 13,203,557 | 12,893,296 | 12,893,296 | |||||||||
|
|
|
|
|
|
2021 | 2020 | 2019 | ||||||||||
Operating Revenue | 18,387,434 | 17,879,281 | 18,204,751 | |||||||||
Operating Profit | 1,068,273 | 878,239 | 747,722 | |||||||||
Profit for the Period | 990,491 | 665,493 | 428,422 | |||||||||
Earnings per share (in Korean won): | ||||||||||||
Basic earnings per share | 4,211 | 2,714 | 1,747 | |||||||||
Diluted earnings per share | 4,203 | 2,713 | 1,747 |
35
Table of Contents
1. Auditors’ opinion on the consolidated/separate financial statements
Fiscal Year | Auditor | Audit | Issues noted | Key Audit Matters | ||||
2021 | Samil PwC | Unqualified | Not applicable. | 1. Cash-Generating Unit Impairment Assessment in Parent 2. Business Combination Accounting-HyundaiHCN(Consoliated) 3. Business Combination Accounting-Epsilon Global Communications(Consoliated) | ||||
2020 | Samil PwC | Unqualified | The financial statements for the fiscal year ending on December 31, 2019 are rewritten, as the retrospectively applying the effect of the change in accounting policy due to the change in the lease term calculation method. | Cash-Generating Unit Impairment Assessment | ||||
2019 | Samil PwC | Unqualified | Not applicable | 1. Impairment of investment in subsidiaries, associates and joint ventures 2. Cash-Generating Unit Impairment Assessment |
2. Audit services contract (Unit : millions of Korean won, hours)
Fiscal Year | Auditor | Contents | Contractual | Actual | ||||||||||||||||
Compensation | Total Time | Compensation | Total Time | |||||||||||||||||
2021 | Samil PwC | Review interim financial statements | 3,200 | 33,000 | 3,200 | 33,028 | ||||||||||||||
Audit of Separate financial statements | ||||||||||||||||||||
Audit of the consolidated financial statements | ||||||||||||||||||||
20-F Filing | ||||||||||||||||||||
2020 | Samil PwC | Review interim financial statements | 3,200 | 33,000 | 3,200 | 33,062 | ||||||||||||||
Audit of Separate financial statements | ||||||||||||||||||||
Audit of the consolidated financial statements | ||||||||||||||||||||
20-F Filing | ||||||||||||||||||||
2019 | Samil PwC | Review interim financial statements | 3,000 | 39,024 | 3,000 | 35,121 | ||||||||||||||
Audit of Separate financial statements | ||||||||||||||||||||
Audit of the consolidated financial statements | ||||||||||||||||||||
20-F Filing |
Financial Statement Review and Audit Period, Internal Accounting Management System Audit (Review) Period |
Category | 2021 | 2020 | 2019 | |||
1st quarter review | From April 1, 2021 to May 15, 2020 | From April 1, 2020 to May 15, 2020 | From April 13, 2019 to May 15, 2019 |
36
Table of Contents
2nd quarter review | From July 12, 2021 to August 17, 2021 | From July 13, 2020 to August 14, 2020 | From July 13, 2019 to August 14, 2019 | |||
3rd quarter review | From October 11, 2021 to November 15, 2021 | From October 15, 2020 to November 16, 2020 | From October 13, 2019 to November 14, 2019 | |||
Audit of systems and automatic internal controls | From May 16, 2021 to June 30, 2021, From August 15, 2021 to September 30, 2021, From November 16, 2020 to December 31, 2021 | From May 18, 2020 to June 30, 2020, From August 18, 2020 to September 29, 2020, From November 17, 2020 to December 31, 2020 | From May 20, 2019 to June 28, 2019, From August 19, 2019 to September 30, 2019, From November 18, 2019 to February 5, 2020 | |||
Early proof audit | From May 9, 2021 to December 30, 2021 | From May 11, 2020 to December 24, 2020 | From May 6, 2019 to December 27, 2019 | |||
Internal Accounting Management System Audit (Review) | From May 9, 2021 to March 10, 2022 | From May 11, 2020 to March 9, 2021 | From May 6, 2019 to March 10, 2020 | |||
Update Early Proof Audit Procedure and Financial Statement Audit | From January 3, 2022 to March 10, 2022 | From January 2, 2021 to March 9, 2021 | From January 2, 2020 to March 10, 2020 |
3. Non-Audit services contract (Unit : millions of Korean won)
Fiscal Year | Contract date | Contents | Service period | Compensation | ||||||
2021 | July 2021 | Comfort letter | July 2021 | 100 | ||||||
2020 | August 2020 | Comfort letter | August 2020 | 100 | ||||||
2019 | July 2019 | Comfort letter | July 2019 | 100 |
4. The results of the Internal Audit Organization’s discussion with the auditor
Date | Attendee | Method | Main Discussion Content | |||
March 4, 2021 | - KT Audit committee, - Audit committee, executive secretary, Compliance officer, etc. - Auditor : 3 people (Director of Business Conductor, etc.) | A face-to-face meeting | - Report on the results of external auditors’ end-of-term audit of 2020 - Results of Key Audit Matters | |||
March 4, 2021 | - Audit committee, executive secretary, Compliance officer, etc. - Auditor : 3 people (Director of Business Conductor, etc.) | A face-to-face meeting | - Key matters related to external audit | |||
April 8, 2021 | - KT Audit committee, - Audit committee, executive secretary, Compliance officer, etc. - Auditor : 3 people (Director of Business Conductor, etc.) | A face-to-face meeting | - Annual audit plan for 2021 - Scope and timing of audit, independence | |||
May 11, 2021 | - KT Audit committee, - Audit committee, executive secretary, Compliance officer, etc. - Auditor : 2 people (Director of Business Conductor, etc.) | A face-to-face meeting | - Results of the first quarter of 2020 review |
37
Table of Contents
May 11, 2020 | - Audit committee, executive secretary, Compliance officer, etc. - Auditor : 2 people (Director of Business Conductor, etc.) | A face-to-face meeting | - Key matters related to external audit | |||
August 10, 2021 | - KT Audit committee, - Audit committee, executive secretary, Compliance officer, etc. - Auditor : 2 people (Director of Business Conductor, etc.) | A face-to-face meeting | - Results of the second quarter of 2020 review | |||
August 10, 2021 | - Audit committee, executive secretary, Compliance officer, etc. - Auditor : 3 people (Director of Business Conductor, etc.) | A face-to-face meeting | - Key matters related to external audit | |||
November 9, 2021 | - KT Audit committee, - Audit committee, executive secretary, Compliance officer, etc. - Auditor : 2 people (Director of Business Conductor, etc.) | A face-to-face meeting | - Results of the third quarter of 2020 review | |||
December 10, 2021 | - KT Audit committee, - Audit committee, executive secretary, Compliance officer, etc. - Auditor : 2 people (Director of Business Conductor, etc.) | A face-to-face meeting | - Important risks identified by the auditor, selection of key audit items, and auditing by item, etc. | |||
December 10, 2021 | - Audit committee, executive secretary, Compliance officer, etc. - Auditor : 2 people (Director of Business Conductor, etc.) | A face-to-face meeting | - Key matters related to external audit |
5. Dividends and Related Matters
Dividend Policy from FY2020 to FY2022
• | Return 50% of normalized separate net income |
• | Maintain equal to or greater than the dividends for FY2019(KRW 1,100 per share) |
Category | FY2021 | FY2020 | FY2019 | |||||||||||
Par Value per Share (Won) | 5,000 | 5,000 | 5,000 | |||||||||||
Net Profit of the Current Term (in Millions of Won) | 1,459,395 | 703,392 | 665,942 | |||||||||||
Net Profit per Share (Won) | 5,759 | 2,684 | 2,512 | |||||||||||
Year-end Cash Dividend (in Millions of Won) | 450,394 | 326,487 | 269,766 | |||||||||||
Year-end Share Dividend (in Millions of Won) | — | — | — | |||||||||||
Cash Dividend Pay Out (%) | 33.2 | 49.6 | 43.8 | |||||||||||
Cash Dividend Yield (%) | Common Shares | 5.9 | 5.3 | 4.0 | ||||||||||
Preferred Shares | — | — | — | |||||||||||
Cash Dividend per Share (Won) | Common Shares | 1,910 | 1,350 | 1,100 | ||||||||||
Preferred Shares | — | — | — |
• | Net Profit, Net profit per share, Cash dividend Pay Out are based on consolidated result. |
• | Cash dividend Pay Out(%) is calculated on a basis of Net Profit contribution to KT. |
38
Table of Contents
• | Cash dividend yield(%) is the percentage of dividends per share against the arithmetic average price of the final price formed in the exchange market for the past week from the date of the two trading days before the closing date of the shareholders ‘list to convene the general shareholders’ meeting. |
V. Management and Affiliated Companies
1. Overview of the Board of Directors and Committees
A. Matters on the Board of Directors
(1) Organization
As of December 31, 2021, the Board of Directors of KT consists of 11 Directors (3 Inside Directors and 8 Outside Directors). Under the Board of Directors, KT has eight different Committees as follows; Representative Director Candidate Examination Committee, Corporate Governance Committee, Outside Director Candidate Recommendation Committee, Audit Committee, Evaluation & Compensation Committee, Executive Committee, Related-Party Transaction Committee and Corporate Sustainability Management Committee. The Board of Directors may establish additional committees if necessary. The Chairman of the Board of Directors is elected separately with CEO and the Board of Directors appoints one of the outside director as a chairman annually. Currently, The Board Chairman is Director Hee-Yol Yu who has enough leadership to coordinate members of the Board.
Please refer to ‘VIII. Directors, Senior Management and Employees’ to see each director’s major career. |
• The Number of Outside Directors and its change
The Number | The Number of Outside Directors | Change of Outside Directors | ||||||||||||||
Appointment | Dismissal | Interim resignation | ||||||||||||||
11 | 8 | 2 | — | — |
Numbers are results of the 39th AGM 2021. |
39
Table of Contents
(2) Major Activities of the Board of Directors
Order | Date | Subject | Result of | Outside Director | Inside Director | |||||||||||||||||||||||
Dae-You | Gang- | Hee-Yol | Tae-Yoon Sung | Hyun- | Chung-Gu Kang | Chan-Hi Park | Eun-Jung Yeo | Hyeon-Mo Ku | Yoon- | Jong-Ook Park | ||||||||||||||||||
Attendance | Attendance | Attendance | Attendance | Attendance | Attendance | Attendance | Attendance | Attendance | Attendance 0% | Attendance | ||||||||||||||||||
1st | 2021. 1. 21 | Proposal on Corporate Sustainability Management Plan in 2021 | Original proposal approved | For | For | For | For | For | For | For | For | For | Absence | For | ||||||||||||||
Proposal on donation of 2021 CSR fund | Original proposal approved | For | For | For | For | For | For | For | For | For | Absence | For | ||||||||||||||||
Proposal of Project Praha | Original proposal approved | For | For | For | For | For | For | For | For | For | Absence | For | ||||||||||||||||
2nd | 2021.2.9 | Approval of financial statements(separate and consolidated) of the 39th term | Original proposal approved | For | For | For | For | For | For | For | For | For | Absence | For | ||||||||||||||
Approval of Business reports of the 39th term | Original proposal approved | For | For | For | For | For | For | For | For | For | Absence | For | ||||||||||||||||
Report on matters for resolution of executive committee for 2H 2020 | Original proposal accepted | For | For | For | For | For | For | For | For | For | Absence | For | ||||||||||||||||
Proposal on revision of operating rules of the board meeting and the board committee | Original proposal approved | For | For | For | For | For | For | For | For | For | Absence | For |
40
Table of Contents
Order | Date | Subject | Result of | Outside Director | Inside Director | |||||||||||||||||||||||
Dae-You | Gang- | Hee-Yol | Tae-Yoon Sung | Hyun- | Chung-Gu Kang | Chan-Hi Park | Eun-Jung Yeo | Hyeon-Mo Ku | Yoon- | Jong-Ook Park | ||||||||||||||||||
Attendance | Attendance | Attendance | Attendance | Attendance | Attendance | Attendance | Attendance | Attendance | Attendance 0% | Attendance | ||||||||||||||||||
3nd | 2021.3.9 | Approval of financial statements(separate and consolidated) of the 39th term | Original proposal approved | For | For | For | For | For | For | For | For | For | Absence | For | ||||||||||||||
Approval of Business reports of the 39th term | Original proposal approved | for | for | for | for | for | for | for | for | for | Absence | for | ||||||||||||||||
Approval of convening of the 39th regular general meeting of shareholders | Original proposal approved | for | for | for | for | for | for | for | for | for | Absence | for | ||||||||||||||||
Report on inspection results of the internal accounting management system in 2020 by Audit committee | Original proposal accepted | for | for | for | for | for | for | for | for | for | Absence | for | ||||||||||||||||
Report on the results of the audit committee’s evaluation of the operation status of the internal accounting management system in 2020 | Original proposal accepted | for | for | for | for | for | for | for | for | for | Absence | for | ||||||||||||||||
Proposal on Standards and Method of Payment on Remuneration of CEO and Inside Directors | Original proposal approved | for | for | for | for | for | for | for | for | —* | —* | —* | ||||||||||||||||
Proposal on Limit of Remuneration of Directors | Original proposal approved | for | for | for | for | for | for | for | for | for | Absence | for | ||||||||||||||||
Proposal on Limit of Remuneration, distinction and the number of administration executives | Original proposal approved | for | for | for | for | for | for | for | for | for | Absence | for | ||||||||||||||||
Amendment of the articles of incorporation | Original proposal approved | for | for | for | for | for | for | for | for | for | Absence | for | ||||||||||||||||
Recommendation of Audit committee candidate | Recommendation of Audit committee candidate | for | for | for | for | for | for | for | for | for | Absence | for | ||||||||||||||||
Agreement on Recommendation of inside director candidate | Recommendation of Inside Director Candidate agreed | for | for | for | for | for | for | for | for | for | —* | —* |
* | No voting right for Inside directors |
41
Table of Contents
2021. 3. 29 the 39th AGM |
• | Term of Inside director Yoon-Young Park expired, Inside director Kook-Hyun Kang newly appointed, Inside director Jong-Ook Park reappointment |
• | Outside director Gang-Cheol Lee, Dae-You Kim reappointment |
Order | Date | Subject | Result of Discussion | Outside Director | Inside Director | |||||||||||||||||||||||
Dae-You Kim | Gang-Cheol | Hee-Yol Yu | Tae-Yoon Sung | Hyun-Myung Pyo | Chung-Gu Kang | Chan-Hi Park | Eun-Jung Yeo | Hyeon-Mo Ku | Jong-Ook Park | Kook-Hyun Kang | ||||||||||||||||||
Attendance 100% | Attendance 84.6% | Attendance 100% | Attendance 100% | Attendance 100% | Attendance 100% | Attendance 100% | Attendance 100% | Attendance 100% | Attendance 100% | Attendance 90% | ||||||||||||||||||
4th | 2021. 3. 30 | Proposal on election of the BOD chairman and committee organization | Chairman of BOD and members of committees appointed | for | Absence | for | for | for | for | for | for | for | for | for | ||||||||||||||
Approval of investment in kind of KT StudioGenie | Original proposal approved | for | Absence | for | for | for | for | for | for | for | for | for | ||||||||||||||||
Report on ‘Anti-Corruption Code of Conduct’ legislation | Original proposal accepted | for | Absence | for | for | for | for | for | for | for | for | for | ||||||||||||||||
5th | 2021.4.13 | Approval of US filing consolidate financial statements of FY2020 | Original proposal approved | for | for | for | for | for | for | for | for | for | for | for | ||||||||||||||
Approval of Appointment of Compliance Officer | Original proposal approved | for | for | for | for | for | for | for | for | for | for | for | ||||||||||||||||
Approval of securing a base space for media content business | Original proposal modified and accepted | for | for | for | for | for | for | for | for | for | for | for | ||||||||||||||||
Approval of securing work space for customer center | Original proposal modified and accepted | for | for | for | for | for | for | for | for | for | for | for |
42
Table of Contents
6th | 2021. 5.13 | Report on financial statements(separate and consolidated) of 1Q FY2021 | Original proposal accepted | for | for | for | for | for | for | for | for | for | for | for | ||||||||||||||
Approval of incorporation of KT Seezn | Original proposal approved | for | for | for | for | for | for | for | for | for | for | for | ||||||||||||||||
7th | 2021. 6.17 | Proposal on provision of long term incentive and disposition of treasury share for 2020 | Original proposal approved | for | for | for | for | for | for | for | for | —* | —* | —* | ||||||||||||||
Proposal on limit of long term incentive and criteria of stock compensation for 2021 | Original proposal approved | for | for | for | for | for | for | for | for | —* | —* | —* | ||||||||||||||||
Proposal on handling provided long term incentives | Original proposal approved | for | for | for | for | for | for | for | for | for | for | Absence | ||||||||||||||||
Report on inspection results of compliance management | Original proposal accepted | for | for | for | for | for | for | for | for | for | for | Absence | ||||||||||||||||
Approval of sale of some shares of ‘yanolja’ | Original proposal approved | for | for | for | for | for | for | for | for | for | for | Absence | ||||||||||||||||
Report on financial performance of corporates invested less than 15 billion won in 2020 | Original proposal accepted | for | for | for | for | for | for | for | for | for | for | Absence | ||||||||||||||||
Approval of Epsilon Acquisition promotion | Original proposal approved | for | for | for | for | for | for | for | for | for | for | Absence |
43
Table of Contents
8th | 2021.7.20 | Approval of M-BcN Construction project | Original proposal approved | for | for | for | �� | for | for | for | for | for | for | for | for | |||||||||||||
9th | 2021.8.12 | Report of financial statements(separate and consolidated) of the 1H 2021 | Original proposal accepted | for | for | for | for | for | for | for | for | for | for | for | ||||||||||||||
Report on matters for resolution of Executive Committee for 1H 2021 | Original proposal accepted | for | for | for | for | for | for | for | for | for | for | for | ||||||||||||||||
10th | 2021.9.16 | Proposal on donation of corporate partnership investment fund for operating collaboration programs with partners | Original proposal approved | for | for | for | for | for | for | for | for | for | for | for | ||||||||||||||
Approval of safety and health plan of 2021 | Original proposal approved | for | for | for | for | for | for | for | for | for | for | for | ||||||||||||||||
Approval of development project plan (Beom-A Building) | decision pending | for | for | for | for | for | for | for | for | for | for | for | ||||||||||||||||
Approval of capital increase of KT StudioGenei | Original proposal approved | for | for | for | for | for | for | for | for | for | for | for | ||||||||||||||||
Report on matters for occasional reorganization in 2021 | Original proposal accepted | for | for | for | for | for | for | for | for | for | for | for | ||||||||||||||||
Proposal on composition of Outside Director Candidate Recommendation Committee and selection criteria for Outside Director Candidate | Passed resolution organizing committee and confirmed Outside director candidate selection criteria | for | for | for | for | for | for | for | for | for | for | for |
44
Table of Contents
11th | 2021.10.29 | Approval of disability compensation such as Internet service | Original proposal modified and accepted | for | for | for | for | for | for | for | for | for | for | for | ||||||||||||||
12th | 2021.11.9 | Report on financial statements(separate and consolidated) of 3Q FY2021 | Original proposal accepted | for | Absence | for | for | for | for | for | for | for | for | for | ||||||||||||||
Approval of development business plan (Beom-A Building) | Original proposal approved | for | Absence | for | for | for | for | for | for | for | for | for | ||||||||||||||||
Proposal on donation to labor welfare fund in 2021 | Original proposal approved | for | Absence | for | for | for | for | for | for | for | for | for | ||||||||||||||||
Proposal on disposition of treasury shares | Original proposal approved | for | Absence | for | for | for | for | for | for | for | for | for | ||||||||||||||||
Approval of ‘My data’ Business promotion | Original proposal approved | for | Absence | for | for | for | for | for | for | for | for | for | ||||||||||||||||
13th | 2021.12.16 | Proposal on 2022 management plan | Original proposal approved | for | for | for | for | for | for | for | for | for | for | for | ||||||||||||||
Report on matters for reorganization in 2022 | Original proposal accepted | for | for | for | for | for | for | for | for | for | for | for |
(*) No voting right for Inside directors
45
Table of Contents
(3) The Status of Committees under the Board of Directors
(a) Organization of the Committees under the Board of Directors (as of December 31, 2021)
Committee | Composition | Name | Purpose of Establishment and Authority | |||
Representative Director Candidate Examination Committee | All Outside Directors & 1 Inside Director | — | According to Article 32(Representative Director Candidate Examination Committee), examine CEO candidates and make a short list | |||
Corporate Governance Committee | 4 Outside Directors, & 1 Inside Director | Gang-Cheol Lee(Chairperson), Dae-You Kim, Hee-Yol Yu, Hyun-Myung Pyo, Jong-Ook Park | Matters related with corporate governance ø Article 41-2(CG Committee) | |||
Outside Director Candidate Recommendation Committee | All Outside Directors (exclude directors whose term to be expired) & 1 Inside Director | Chung-Gu Kang(Chairperson) Gang-Cheol Lee, Dae-You Kim, Hyun-Myung Pyo, Eun-Jung Yeo, Jong-Ook Park | Recommendation of Outside candidates to the general meeting ø See V. 1.(4) Independence of the Board of Directors for the Outside Director Candidate Recommendation Committee ø Commercial Act §542: 8(appointment of Outside Directors), Article 42(Outside Director Candidates Recommendation Committee) | |||
Audit Committee | 4 Outside Directors | Dae-You Kim(Chairperson), Tae-Yoon Sung, Chung-Gu Kang, Eun-Jung Yeo | Matters related with financial and performance audit ø See V. 2. Audit system ø Commercial Law §542: 11 (Audit Committee) 1st article ø Article 43(Audit Committee) | |||
Evaluation & Compensation Committee | 4 Outside Directors | Tae-Yoon Sung(Chairperson), Hee-Yol Yu, Hyun-Myung Pyo, Chan-Hi Park | Management Agreement with the CEO and Assessment | |||
Executive Committee | 3 Inside Directors | Hyeon-Mo Ku(Chairperson), Jong-Ook Park, Kook-Hyun Kang | Management matters authorized by the Board of Directors | |||
Related-party Transaction Committee | 4 Outside Directors | Chan-Hi Park(Chairperson), Hee-Yol Yu, Chung-Gu Kang, Eun-Jung Yeo | Under the Commercial Act :
Matters about approval of using business opportunities of company, Transaction between directors and company, Transactions which need to be approved by the Board of Directors among transactions with the largest shareholder and specially related persons and Internal trading stipulated by the Monopoly Regulation and Fair Trade Act | |||
Corporate Sustainability Management Committee | 4 Outside Directors, & 1 Inside Director | Hyun-Myung Pyo(Chairperson), Gang-Cheol Lee, Tae-Yoon Sung, Chan-Hi Park, Kook-Hyun Kang | Matters about Corporate Sustainability Management |
46
Table of Contents
(b) Activities of the Committees under the Board of Directors
• | President Candidate Examination Committee : Not applicable |
• | Corporate Governance Committee |
Order | Meeting Date | Agenda | Results of discussion | Outside Director | Inside Director | |||||||||||
Gang-Cheol Lee | Dae-You Kim | Hee-Yol Yu | Hyun-Myung Pyo | Jong-Ook Park | ||||||||||||
Attendance 100% | Attendance 100% | Attendance 100% | Attendance 100% | Attendance 100% | ||||||||||||
1st | 2021.02.09 | Report on revision of operating rules of the board meeting and the board committee | Original proposal modified and accepted | For | For | For | For | For | ||||||||
2nd | 2021.02.25 | Report on amendment of the articles of incorporation | Original proposal accepted | For | For | For | For | For |
• | Outside Director Candidate Recommendation Committee : Refer to “(4) Independence of the Board of Directors” for details |
• | Audit Committee : Refer to “2. Audit System major Activities of the Audit Committee” for details |
• | Evaluation & Compensation Committee |
Order | Meeting Date | Agenda | Results of discussion | Outside Director | Inside Director | |||||||||
Hee-Yol Yu | Gang-Cheol Lee | Hyun-Myung Pyo | Chan-Hi Park | |||||||||||
Attendance 100% | Attendance 100% | Attendance 100% | Attendance 100% | |||||||||||
1st | 2021.03.04 | Evaluation result of CEO’s management goal achievement for 2020 | Evaluation results confirmed | For | For | For | For | |||||||
Proposal on CEO’s management goal for 2021 | Original proposal modified and approved | For | For | For | For | |||||||||
Report on Standards and Method of Payment on Remuneration of CEO and Inside Directors | Original proposal approved | For | For | For | For |
47
Table of Contents
ø | The 4th Board Meeting of 2021 (2021.3.30) : |
• | The Evaluation & Compensation Committee was formed by outside director Tae-Yoon Sung(Chairperson), Hee-Yol Yu, Hyun-Myung Pyo, Chan-Hi Park |
Order | Meeting Date | Agenda | Results of discussion | Outside Director | ||||||||||
Tae-Yoon Sung | Hee-Yol Yu | Hyun-Myung Pyo | Chan-Hi Park | |||||||||||
Attendance 100% | Attendance 66.7% | Attendance 100% | Attendance 100% | |||||||||||
2nd | 2021.06.15 | Report on provision of long term incentive and disposition of treasury share for 2020 | Original proposal accepted | for | for | for | for | |||||||
Report on limit of long term incentive and criteria of stock compensation for 2021 | Original proposal accepted | for | for | for | for |
• | Executive Committee |
Order | Meeting Date | Agenda | Results of discussion | Inside Director | ||||||||
Hyeon-Mo Ku | Yoon-Young Park | Jong-Ook Park | ||||||||||
(Attendance:100%) | (Attendance:0%) | (Attendance: 100%) | ||||||||||
1st | 2021.01.14 | Plan for issuance of 194th KT corporate bonds | Original proposal approved | for | Absence | for | ||||||
Approval of the promotion plan for the new content corporation | Original proposal approved | for | Absence | for |
48
Table of Contents
2nd | 2021.01.27 | Approval of establishment, relocation, and abolition of branches | Original proposal approved | for | Absence | for | ||||||
Approval of investment ‘Future Innovation Fund III’ | Original proposal approved | for | Absence | for | ||||||||
3rd | 2021.02.04 | KT Handset Account Receivable Selling Plan for 2021 | Original proposal approved | for | Absence | for | ||||||
4th | 2021.02.24 | Approval of investment of Project Olaf | Original proposal approved | for | Absence | for |
ø | the 39th AGM on March 29, 2021 |
• | Inside director Yoon-Young Park expired, Kook-Hyun Kang newly appointed, Jong-Ook Park reappointment |
Order | Meeting Date | Agenda | Results of discussion | Inside Director | ||||||||
Hyeon-Mo Ku | Jong-Ook Park | Kook-Hyun Kang | ||||||||||
(Attendance:100%) | (Attendance: 100%) | (Attendance: 100%) | ||||||||||
5th | 2021.04.12 | Approval of investment of Project Alaska | Original proposal approved | for | for | for | ||||||
Approval of investment of Project Stellar | Original proposal approved | for | for | for | ||||||||
6th | 2021.05.26 | Plan for issuance of 195th KT corporate bonds | Original proposal approved | for | for | for | ||||||
7th | 2021.06.16 | Approval of investment of Project Wyoming | Original proposal approved | for | for | for | ||||||
8th | 2021.7.6 | Plan for issuance of 2021 1st KT foreign currency corporate bonds | Original proposal approved | for | for | for | ||||||
9th | 2021.7.20 | Approval of investment in New Industry Advancement Investment Association with KT-IBK | Original proposal approved | for | for | for | ||||||
10th | 2021.8.18 | Approval of BHH acquisition for disposal of Ochang site and relocation of communication facilities on site | Original proposal approved | for | for | for |
49
Table of Contents
11th | 2021.8.25 | Approval of investment in Strategic Investment Association No. 6 | Original proposal approved | for | for | for | ||||||
12th | 2021.11.24 | Approval for acquiring land adjacent to Jeonnong Building | Original proposal approved | for | for | for | ||||||
13th | 2021.12.22 | Approval of blind fund investment for real estate (IDC) business growth | Original proposal approved | for | for | for | ||||||
Approval of establishment and address transfer of branch offices | Original proposal approved | for | for | for |
• | Related-Party Transaction Committee |
Order | Meeting Date | Agenda | Results of discussion | Outside Director | ||||||||||
Chan-Hi Park | Hee-Yol Yu | Chung-Gu Kang | Eun-Jung Yeo | |||||||||||
Attendance 100% | Attendance 100% | Attendance 100% | Attendance 100% | |||||||||||
1st | 2021.09.03 | Proposal on participating in paid-in capital increase for lolab | Original proposal approved | for | for | for | for |
• | Corporate Sustainability Management Committee |
Order | Meeting Date | Agenda | Results of discussion | Outside Director | Inside Director | |||||||||||
Hyun-Myung Pyo | Gang-Cheol Lee | Chan-Hi Park | Tae-Yoon Sung | |||||||||||||
(Attendance: 100%) | (Attendance: 100%) | (Attendance: 100%) | (Attendance: 100%) | (Attendance: 0%) | ||||||||||||
1st | 2021.01.19 | Report on 2021 Corporate Sustainability Management plan | Original proposal accepted | for | for | for | for | Absence |
50
Table of Contents
ø | the 39th AGM on March 29, 2021 |
• | Inside director Yoon-Young Park expired, Kook-Hyun Kang newly appointed, |
Order | Meeting Date | Agenda | Results of discussion | Outside Director | Inside Director | |||||||||||
Hyun-Myung Pyo | Gang-Cheol Lee | Chan-Hi Park | Tae-Yoon Sung | Kook-Hyun Kang | ||||||||||||
(Attendance: 100%) | (Attendance: 100%) | (Attendance: 100%) | (Attendance: 100%) | (Attendance: 100%) | ||||||||||||
2nd | 2021.05.13 | Approval to appear in a win-win cooperation organization to spread a culture of shared growth | Original proposal approved | for | for | for | for | for | ||||||||
3rd | 2021.08.12 | Report on result of Corporate Sustainability Management assessment for the 1H 2021 | Original proposal accepted | for | for | for | for | for | ||||||||
4th | 2021.12.16 | Report on result of Corporate Sustainability Management assessment for 2021 | Original proposal accepted | for | for | for | for | for |
(4) Independence of the Board of Directors
(a) Independence of appointing BOD members
In order to secure independence and transparency, outside director candidate should be recommended to the AGM by Outside director candidate committee and the outside search and advisory service may be conducted if necessary. Inside director, excluding representative director, should be recommended among executives by representative director with consent of the board of directors and selected from the AGM following the articles of incorporation.
51
Table of Contents
(b) Appointment of new Directors and recommender (as of December 31, 2020)
Title | Name | Tenure | Consecutive term (number of term) | Appointment | Recommendation | Acting area as a | Transactions | |||||||
Representative director | Hyeon-Mo Ku | March of 2020 ~ AGM day of 2023 | — | ICT/Management expert | BOD | Executive committee | None | |||||||
Inside director | Jong-Ook Park | March of 2020 ~ AGM day of 2022 | Consecutive term (1) | ICT/Management expert | Representative director (w/ the consent of BOD) | Executive committee Corporate governance committee Outside director candidate recommendation committee | None | |||||||
Inside director | Kook-Hyun Kang | March of 2021 ~ AGM day of 2022 | — | ICT/Management expert | Representative director (w/ the consent of BOD) | Executive committee Corporate sustainability management committee | None | |||||||
Outside director | Dae-You Kim | March of 2018 ~ AGM day of 2024 | Consecutive term (1) | Corporate relations expert | Outside director candidate recommendation committee | Chairperson of Audit committee Corporate governance committee Outside director candidate recommendation committee | None |
52
Table of Contents
Outside director | Gang-Cheol Lee | March of 2018 ~ AGM day of 2024 | Consecutive term (1) | Corporate relations expert | Outside director candidate recommendation committee | Chairperson of Corporate governance committee, Corporate sustainability management committee Evaluation and compensation committee | None | |||||||
Outside director | Hee-Yol Yu | March of 2019 ~ AGM day of 2022 | — | ICT expert | Outside director candidate recommendation committee | Chairperson of BOD Corporate governance committee Evaluation and compensation committee Related-party transaction committee | None | |||||||
Outside director | Tae-Yoon Sung | March of 2019 ~ AGM day of 2022 | — | Global affairs /Economy expert | Outside director candidate recommendation committee | Chairperson of Evaluation and compensation committee, Audit committee Corporate sustainability management committee | None | |||||||
Outside director | Hyun-Myung Pyo | March of 2020 ~ AGM day of 2023 | — | ICT/Management expert | Outside director candidate recommendation committee | Chairperson of Corporate sustainability management committee, Corporate governance committee, Evaluation and compensation committee Outside director candidate recommendation committee | None |
53
Table of Contents
Outside director | Chung-Gu Kang | March of 2020 ~ AGM day of 2023 | — | Telecommunication ICT expert | Outside director candidate recommendation committee | Audit committee, Related-party transaction committee Outside director candidate recommendation committee | None | |||||||
Outside director | Chan-Hi Park | March of 2020 ~ AGM day of 2022 | — | Management expert | Outside director candidate recommendation committee | Chairperson of Related party transaction committee Evaluation and compensation committee, Corporate sustainability management committee | None | |||||||
Outside director | Eun-Jung Yeo | March of 2020 ~ AGM day of 2023 | Accounting·Finance expert | Outside director candidate recommendation committee | Audit committee, Related-party transaction committee Outside director candidate recommendation committee | None |
54
Table of Contents
Tenure : Tenure as a director
(c) | Establishing separate committee to appoint new directors |
The 10th Board meeting of 2021 (2021.9.16) : Chairperson and members of Outside Director Candidate Recommendation Committee appointed
Name | Whether Outside Director | Note | ||
Chung-Gu Kang (Chairperson) | O | The number of Outside Directors should be more than 50% (fulfilled requirements stipulated in Commercial Act 542(8) 4.) | ||
Gang-Cheol Lee | O | |||
Dae-You Kim | O | |||
Hyun-Myung Pyo | O | |||
Eun-Jung Yeo | O | |||
Jong-Ook Park | X |
Excluded Outside Director Hee-Yol Yu, Tae-Yoon Sung, Chan-Hi Park whose tenure ended by the AGM of 2022 |
• | Outside Director Candidate Recommendation Committee |
Order | Meeting Date | Agenda | Results of discussion | Outside Director | Inside | |||||||||||||||
Hee-Yol | Tae-Yoon | Hyun- | Chung-Gu | Chan-Hi | Eun-Jung | Jong-Ook | ||||||||||||||
(Attendance: | (Attendance: | (Attendance: | (Attendance: | (Attendance: | (Attendance: | (Attendance: | ||||||||||||||
1st | 2021.02.25 | Final decision on Outside Director candidates | Candidates decided | for | for | for | for | for | for | for |
The 10th Board meeting of 2021 (2021.9.16) : Chairperson and members of Outside Director Candidate Recommendation Committee appointed
55
Table of Contents
Order | Meeting Date | Agenda | Results of discussion | Outside Directors | Inside Directors | |||||||||||||
Chung-Gu | Gang- | Dae-You | Hyun- | Eun-Jung | Jong-Ook | |||||||||||||
(Attendance: | (Attendance: 100%) | (Attendance: 100%) | (Attendance: 100%) | (Attendance: 100%) | (Attendance: | |||||||||||||
2nd | 2021.11.04 | Proposal on operating plan of Outside Director Candidate Recommendation Committee | Committee operating plan approved | for | for | for | for | for | for |
(5) Expertise of Outside Directors
KT established a dedicated team(corporate governance team) for outside directors to support the board meeting and committee activities. The corporate governance team provides explanatory meetings in advance, if necessary, to make agendas fully considered and information on business issues.
(a) Supportive team for Outside Directors
Department | Number of Staffs | Job Position(years served) | Activity history | |||
BOD Office of the Management Planning Department | 9 | Office Director 1 (3.9 years of service) Team leader 2 (1.3 years of service on average) Vice director 2 (2.3 years of service on average) Manager 3 (4.7 years of service on average) Assistant manager 1 (0.3 years of service) | - Provides daily news about the company and telecom policies and report on major issues - Reports on preliminary check result for meeting items - Provides other information needed for outside directors’ job and supports for their requests. |
Years served are counted up to date of disclosure
56
Table of Contents
(b) Education for outside directors
Date | Education provider | Attended outside director | Reasons for | Education contents | ||||
2021. 01. 14 | KT | All | — | Cloud/IDC business status and strategy | ||||
2021. 01. 19 | KT | All | — | Major regulation issues and responds in | ||||
2021. 01. 28 | KT | Hee-Yol Yu Hyun-Myung Pyo Chung-Gu Kang | for applicants | Financials | ||||
2021. 02. 25 | KT | All | — | My data business status and strategy KT Group management direction and achievements | ||||
2021. 03. 09 | KT | Hee-Yol Yu Dae-You Kim Tae-Yoon Sung Hyun-Myung Pyo Chung-Gu Kang Chan-Hi Park Eun-Jung Yeo | private schedule (Alternatively provided education materials | Group Media/Contents business management plan | ||||
2021. 04. 13 | KT | All | — | Group Real estate business status and strategy Robot business status and strategy The potential and limitations of AI technology | ||||
2021. 05. 13 | KT | All | — | DX business growth strategy | ||||
2021. 06. 15 | KT | All | — | Notes for Compliance with the Anti-Corruption Code of Conduct | ||||
2021. 06. 17 | KT | All | — | Internet Bank estate business status and strategy Digital Health-care business status and strategy | ||||
2021. 08. 10 | KT | Hee-Yol Yu Gang-Cheol Lee Dae-You Kim Hyun-Myung Pyo Chung-Gu Kang Chan-Hi Park Eun-Jung Yeo | private schedule (Alternatively provided education materials | Business performance in the first half and management direction in the second half | ||||
2021. 08. 12 | KT | All | — | Cloud business market competition and response Global business status and strategy video training of Anti-corruption | ||||
2021. 09. 14 | KT | All | — | Financial business market change and response | ||||
2021. 09. 16 | external auditor | All | — | Internal accounting management system* | ||||
2021.10.19 | external instructor | Hee-Yol Yu Dae-You Kim Hyun-Myung Pyo Chung-Gu Kang Chan-Hi Park Tae-Yoon Sung Eun-Jung Yeo | private schedule (Alternatively provided education materials | A Study on the Role of the KT Board of Directors |
* | CEO Hyeon-Mo Ku, inside director Jong-Ook Park, Kook-Hyun Kang attended |
57
Table of Contents
(1) Personal Information of Members of the Audit Committee (As of December 31, 2020)
Name | Outside Director | Experience | Accounting/ Finance Expert | |||||||
Expert | Expertise | Relevant career | ||||||||
Dae-You Kim | Yes | - Economic Policy Top Secretary, Presidential Secretariat (Vice Minister Level) - Vice Chairman, Wonik Investment Partners - Outside Director, DB Life Insurance Co., Ltd(Present) | — | — | — | |||||
Tae-Yoon Sung | Yes | - Professor at School of Economics, Yonsei University - Dean of Underwood International College, Yonsei University - Director at Korea Money and Finance Association - Editorial Member at Editorial Committee, Korea Economic Association | — | — | — | |||||
Chung-Gu Kang | Yes | - Professor at College of Engineering, Korea University - Member of the National Academy of Engineering of Korea - Honorary President at Korea Institute of Communication and Information Sciences - Chair at Consultative Committee for Radio Policy, Ministry of Science and ICT | — | — | — | |||||
Eun-Jung Yeo | Yes | - Profess at College of Business, Chung-Ang University - Member of Asset Management Committee for Employment Insurance / Industrial Insurance Fund, Ministry of Employment and Labor - Member of Financial subcommittee, Consumer Policy Committee, Fair Trade Commission, Prime Minister’s Office - Vice President at Korea Money and Finance Association | Yes | Ph.D. in Finance and accounting | - Qualification : Ph.D. in Economics, University of Michigan - Work Length : Profess at College of Business, Chung-Ang University (2013-Present) |
58
Table of Contents
(a) Finance and accounting expert
Director Dae-You Kim is reelected as member of Audit Committee at AGM on March 29th, 2021. Amongst Audit committee members, Director Eun-Jung Yeo is a finance/accounting expert. Director Eun-Jung Yeo received Ph,D in Economics and has worked from September, 2013 as a professor of School of Business, Chung-Ang University.
Director Eun-Jung Yeo is an expert in corporate finance (CSR, remuneration, governance, behavioral finance), Fintech (payment, virtual currency), financial brokerage (credit information, credit card, banking industry), financial investment business, and capital market, writing a number of papers related to Corporate Finance. She also has been in charge of evaluation and advisory services in accounting and finance related fields, such as in government agencies. Please refer to the following for specific major career and financial accounting-related activities.
• | Qualification and work experience |
Begin Year | End Year | Experience | Note | |||
1996 | 1998 | Bachelor’s in Chemical Engineering, Seoul National University | — | |||
2000 | 2006 | Ph.D. in Economics, University of Michigan | Qualified : Master’s degree or higher in finance and accounting related field | |||
2013 | Present | Profess at College of Business, Chung-Ang University | Qualified : Worked for a university at least as an assistant professor or higher in accounting or finance for an aggregated period of at least five years |
• | Other major work experience |
• | 2017-present : Member of Financial Developments Council, Financial Services Commission |
• | 2015-present : Member of Evaluation Committee for Public Funds, Ministry of Strategy and Finance |
• | 2016-present : Member of Financing & Planning Council, City government of Seoul |
• | 2018-present : Vice President at Financial Information Society of Korea |
• | 2016 : Vice President, MBA, Chung-Ang University |
• | 2015-2016 : Director, Korea Money and Finance Association |
• | 2015-2016 : Coordinator, Korea Securities Association |
• | 2012-2014 : Public capital redemption fund oversight council, Financial Services Commission |
• | 2012-2014 : Editorial Board of Asian Review of Financial Research |
• | 2006-2009 : Research Fellow, Korea Institute of Finance |
59
Table of Contents
(2) Independence of Audit Committee
The Audit Committee is established within the Board of Directors and members of the audit committee are appointed at the shareholders’ meeting. The Audit Committee is composed of four Outside Directors. Among the members, Eun-Jung Yeo is the financial expert.
The Audit Committee performs its duties and accounting work independently. If necessary, the Audit Committee and its members have the right to report on the company’s business and investigate the company’s financial status.
Outside | Tenure* | Consecutive term (number of term) | Reasons for | Recommender | Roles in the Board | Transaction with | ||||||
Dae-You Kim | March of 2021 ~ AGM of 2024 | Consecutive term (1) | External Cooperation Expert | Board of Directors | Audit Committee (Chairperson) Corporate Governance Committee(Member), Outside director candidate recommendation committee | None | ||||||
Tae-Yoon Sung | March of 2020 ~ AGM of 2022 | — | Global affairs/ Economy Expert | Board of Directors | Evaluation and compensation committee (Chairperson) Audit Committee, Corporate sustainability management committee | None | ||||||
Chung-Gu Kang | March of 2020 ~ AGM of 2023 | — | ICT Expert | Board of Directors | Audit Committee Related-party transaction committee Outside director candidate recommendation committee | None | ||||||
Eun-Jung Yeo | March of 2020 ~ AGM of 2023 | — | Finance/Accounting Expert (Article 37 (2) 2 of the Enforcement Decree of the Commercial Act) | Board of Directors | Audit Committee Related-party transaction committee | None |
60
Table of Contents
(3) Major Activities of the Audit Committee
Order | Date | Agenda | Result of | Outside Director | ||||||||||
Dae-You | Tae-Yoon | Chung-Gu | Eun-Jung | |||||||||||
(Attendance: | (Attendance: | (Attendance: | (Attendance: | |||||||||||
1st | 2021.02.04 | Approval of audit and non-audit services for consolidated company for the Fiscal year 2021 | Original proposal approved | for | for | for | for | |||||||
2021.02.04 | 2021 Compliance Plan Report | Original proposal accepted | for | for | for | for | ||||||||
2nd | 2021.02.25 | Report on operational condition of the internal accounting management system for 2020 | Original proposal accepted | for | for | for | for | |||||||
Report on audit records for 2020 and audit plan for 2021 | Original proposal accepted | for | for | for | for | |||||||||
3rd | 2021.03.04 | Report on final audit for fiscal year 2020 | Original proposal accepted | for | for | for | for | |||||||
Evaluation report on operational status of internal compliance device of the audit committee for 2020 | Original proposal approved | for | for | for | for | |||||||||
4th | 2021.03.18 | Evaluation Opinion on the Operation Status of the Audit Committee’s Internal Monitoring System | Original proposal approved | for | for | for | for | |||||||
Research result report on agenda and documents of the annual general meeting of shareholders for the 39th term | Original proposal approved | for | for | for | for | |||||||||
Audit report of the annual general meeting of shareholders for the 39th term | Original proposal approved | for | for | for | for | |||||||||
Appointment of the Chairman of the Compliance Committee | Appointment of Chairperson | for | for | for | for |
After the 39th General Meeting of Shareholders on March 29, 2020 |
61
Table of Contents
- Outside Director Dae-You Kim reappointed as Audit Committee member
Order | Date | Agenda | Result of Discussion | Outside Director | ||||||||||
Dae-You | Tae-Yoon | Chung-Gu | Eun-Jung | |||||||||||
(Attendance: | (Attendance: | (Attendance: | (Attendance: | |||||||||||
5th | 2021.03.30 | Appointment of the chairman of Audit committee | Chairman appointed | for | for | for | for | |||||||
Delegation of authority for prior approval of non-audit service of external auditor | Original proposal approved | for | for | for | for | |||||||||
6th | 2021.04.08 | Report on US filing consolidated financial statements final audit for the Fiscal year 2020 | Original proposal accepted | for | for | for | for | |||||||
Report on the status of audit performance by external auditors in fiscal year 2020 | Original proposal accepted | for | for | for | for | |||||||||
7th | 2021.05.11 | Report on financial statements(separate and consolidated) of the 1Q 2021 | Original proposal accepted | for | for | for | for | |||||||
8th | 2021.08.10 | Report on financial statements(separate and consolidated) of the 1H 2021 | Original proposal accepted | for | for | for | for | |||||||
Report on final audit for the first half of fiscal year 2021 | Original proposal accepted | for | for | for | for | |||||||||
Report on audit result for the first half of fiscal year 2020 and audit plan for second half of fiscal year 2021 | Original proposal accepted | for | for | for | for | |||||||||
Report on hiring results of management executives in the first half of 2021 | Original proposal accepted | for | for | for | for | |||||||||
9th | 2021.11.09 | Report on financial statements(separate and consolidated) of the 3Q 2021 | Original proposal accepted | for | for | for | for | |||||||
Report on compliance performance in 2021 | Original proposal accepted | for | for | for | for | |||||||||
Report on External auditor selection criteria of FY2022-FY2024 | Original proposal approved | for | for | for | for | |||||||||
Approved audit service for consolidated companies(periodic designation) by external auditors in fiscal year 2021 and limit change of non-audit service of external auditor | Original proposal approved | for | for | for | for | |||||||||
Report on Compliance Officer Evaluation Results in fiscal year 2021 | Evaluation grade determined | for | for | for | for | |||||||||
10th | 2021.11.23 | Report on External auditor selection of FY2022-FY2024 | Original proposal approved | for | for | for | for | |||||||
11th | 2021.12.10 | Approved Final selection of external auditors and approval of remuneration of FY2022-FY2024 | Original proposal approved | for | for | for | for | |||||||
Approved audit service for consolidated companies(periodic designation) by external auditors | Original proposal approved | for | for | for | for |
(4) Education plan
Though auditors already have sufficient experience and knowledge, KT provides auditors with reports and education programs about related issues such as industry which KT belongs to, change in management environment, legal change and etc..
- Briefing on major change in management environment and compliance issue
- Seminars related with the Audit Committee
- Educational programs or conference
62
Table of Contents
(5) Audit Committee Education status
Date | Education | Attended audit member | Reasons for absence | Education contents | ||||
2021. 04. 22 | Audit Committee Forum | Dae-You Kim Eun-Jung Yeo Chung-Gu Kang | due to personal schedule (Substitute for provision of educational materials) | - Covid 19 & ESG - ESG-related reporting & Role of the Audit Committe | ||||
2021. 06. 15 | KT | All | — | Notes for Compliance with the Anti-Corruption Code of Conduct | ||||
2021. 07. 15 | Audit Committee Forum | All | — | - Internal accounting management system experience and lessons learned - Changes in the internal accounting management system & Role of the Audit Committe | ||||
2021. 08. 12 | KT | All | — | video training of Anti-corruption | ||||
2021.11.18 | Audit Committee Forum | All | — | - Review of the feasibility of the audit committee’s best practices and improvement plans - The role of investigation and reporting by the audit committee based on cases |
Anti-corruption education(2021.6.15, 2021.8.12) is provided to all outside directors, including audit committee members |
63
Table of Contents
(6) Supportive team for Audit Committee
Department | Number | Job Position(years served) | Activity history | |||
Ethics Management Office | 47 | Offce Head 1 (3 years of service) Director 2 (2.6 years of service on average) Team leader 8 (2.7 years of service on average) Team members 36 (3.7 years of service on average) | • Group/company-wide ethical management promotion and organizational soundness and ethics diagnosis/audit • Company-wide risk management and compliance status diagnosis and inspection • Group/company-wide accounting audit and internal control diagnosis |
(7) Matters on Compliance officer
• | Name : Byung-Sam Park |
• | Qualification : Passed the 35th Korean judicial examination(1993), Lawyer |
• | Education |
• | Graduated School of Law, Korea University (1990) |
• | Studied in Munich University, Germany (2007~2008) |
• | Completed executive course in School of Law, Seoul University (2014) |
• | Professional experience |
• | Completed the 27th training of the Judicial Research and Training Institute (1998) |
• | Judge of Daegu, Incheon, Seoul Central and Seoul Southern District Court (1998~2007) |
• | Judge of Seoul High Court (2009~2010) |
• | Delegated to Constitutional Court (2010~2012) |
• | Judge in charge of warrant at Seoul Central District Court (2012~2013) |
• | Vice president, Legal Affair Department of Legal Affair Center, KT Ethics Management Office / Legal Affair 1 Department, Legal Affairs office (2013~2015) |
• | Head of KT Legal Affair Office, Corporate Planning Group (2017.12.~2018.11) |
• | Head of KT Legal Affair Office (2018.11 ~ Present) |
64
Table of Contents
• | Major Activities and results |
Items | Date/Period | Contents | Result | |||
Compliance education | On occasion | - Conducting compliance training by department by major position - Online education including anti-graft/foreign anti-corruption laws for all employees - Conducting compliance education for group companies and business partners | Nothing significant to report | |||
Compliance Support | On occasion | - Enactment and enforcement of the ‘Code of Conduct for Anti-Corruption’ to comply with the Anti-Graft Act and FCPA (‘21.3~) - Introduction of third-party risk assessment and compliance due diligence process (‘12.12~) - Conducting legal review on the work performed by executives and employees and contracts - Establish a communication channel between compliance officers and employees by building a compliance platform (Regular access to compliance control related materials, support for voluntary compliance activities by department) - Establishment & support of group compliance system (Compliance management consulting for group companies, operation of group compliance management council) | Nothing significant to report | |||
Compliance check | On occasion | - Support for setting major legal risk areas and establishing compliance inspection plans for each department - Report the plan and results of compliance activities to the audit committee - Report to the Board of Directors on the results of the inspection on compliance with the compliance control standards - Operation of the Compliance Committee (the highest decision-making body related to compliance control) and the Compliance Secretariat | Nothing significant to report |
65
Table of Contents
• | Supportive team for the compliance officer |
Department | Number of Staffs | Job Position(years served) | Activity history | |||
Compliance Office | 16 | Team leader 3 (3.4years of service on average) Director 4 (1.7 year of service) Senior Manager 6 (4.4 years of service on average) Manager 1 (0.8 years of service on average) Lawyer 2 (6.1 years of service on average) | - Corporate compliance planning - Compliance trainings for employees - Inspection and evaluation on each compliance area - Facilitating compliance to be culturally embedded - Provides prior report on main issues - Supports compliance decision making entities(Audit committee, Compliance committee and others) |
3. Matters on Shareholder’s Exercise of Voting Rights
A. | Adoption of Cumulative Voting System |
• | Automatic introduction of the cumulative voting system was implemented following the completion of the privatization process in 2002. |
• | Where a general meeting of shareholders of a company is convened to appoint two or more directors, shareholders who hold no less than three percent of the total number of issued and outstanding shares excluding nonvoting shares may request the company to appoint directors based on cumulative voting, except as otherwise provided for by the articles of incorporation. |
• | Each shareholder shall have the same number of voting rights per share as directors to be elected, with respect to the resolutions for election of directors, and the voting rights may be exercised based on cumulative voting for one or several candidates for directors |
• | Where directors are to be elected by a vote, the directors shall be elected in order of candidates who obtain the most votes. |
• | For further information, refer to Commercial Act Article 382-2(Cumulative Voting) and Article 542-7(Special cases concerning Cumulative Voting) |
B. | Adoption of the Written Voting System or Electronic Voting |
• | Adoption of the written voting system in accordance with the changes in the Articles of Incorporation at the 23rd General Meeting of Shareholders (March 11, 2005). The written voting system has been introduced and exercised to protect right of the minority shareholders. To make minor shareholders can exercise voting right on each agenda with the written vote measure, KT sends voting papers with the AGM notice and shareholders can exercise voting rights by marking for/against on voting paper and mailing back to the company before the meeting. |
Article 22-2 (Exercise of Voting Rights by Writing)
(1) The Shareholders may exercise their voting rights by writing without attending the General Meetings of Shareholders in person.
(2) In case of Paragraph (1) above, KT shall send the notice of convening the General Meeting of Shareholders, together with written documents and reference materials necessary for the Shareholders to exercise their voting rights.
(3) The Shareholders desiring to exercise their voting rights by writing shall enter necessary matters in the written documents under paragraph (2) and submit them to KT by the date immediately preceding the date set for the Meeting.
• | To promote attendance for the shareholders’ meeting, KT improved shareholders’ convenience by adopting electronic voting through the BOD resolution on February 6, 2020 in accordance with the Commercial Act Article 368-4(Exercise of Voting Rights by Electronic Means). On the AGM notice, KT will notice that shareholders mayn exercise vote by electronic means. When shareholders exercise an absentee vote, he/she shall choose to do so either in writing or by electronic mean in accordance with the Commercial Act Article 368-4(4). |
66
Table of Contents
[As of December 31, 2021] | (Units: In Share, Won million) | |||||||||||||||||||||||||||||||||||||||||||
Name of Company or Item | Beginning Balance | Increase (Decrease) | Ending Balance | Financial Facts (Latest fiscal year) | ||||||||||||||||||||||||||||||||||||||||
Number of Shares | Equity Ratio | Book Value | Acquisition (Disposal) | Valuation | Number of Shares | Equity Ratio | Book Value | Total Assets | Net Profits | |||||||||||||||||||||||||||||||||||
Shares | Amounts | |||||||||||||||||||||||||||||||||||||||||||
KT Powertel Co., Ltd. | 7,771,418 | 44.8 | % | 37,419 | -7,771,418 | -37,419 | — | 0 | 0 | % | 0 | 119,694 | 3,809 | |||||||||||||||||||||||||||||||
KT Linkus Co., Ltd. | 3,075,232 | 87.3 | % | 6,738 | — | — | — | 3,075,232 | 87.3 | % | 6,738 | 54,219 | -4 ,653 | |||||||||||||||||||||||||||||||
KT Submarine Co., Ltd. (*1) | 8,085,000 | 39.3 | % | 24,370 | — | — | — | 8,085,000 | 39.3 | % | 24,370 | 116,813 | 1,197 | |||||||||||||||||||||||||||||||
KT Sat Co., Ltd. | 10,000,000 | 100.0 | % | 390,530 | — | — | — | 10,000,000 | 100.0 | % | 390,530 | 593,616 | 20,830 | |||||||||||||||||||||||||||||||
KT Telecop Co., Ltd. | 5,765,911 | 86.8 | % | 134,308 | — | — | — | 5,765,911 | 86.8 | % | 134,308 | 363,224 | 3,985 | |||||||||||||||||||||||||||||||
KTCS Corporation (*1) | 3,177,426 | 7.8 | % | 6,427 | — | — | — | 3,177,426 | 7.9 | % | 6,427 | 294,669 | 14,709 | |||||||||||||||||||||||||||||||
KTIS Corporation (*1) | 10,196,190 | 30.8 | % | 30,633 | — | — | — | 10,196,190 | 31.4 | % | 30,633 | 369,672 | 25,253 | |||||||||||||||||||||||||||||||
KT Skylife Co., Ltd. (*1) | 23,908,000 | 50.3 | % | 311,696 | — | — | — | 23,908,000 | 50.3 | % | 311,696 | 1,147,038 | 51,254 | |||||||||||||||||||||||||||||||
SkylifeTV Co., Ltd. | 6,000,000 | 14.8 | % | 3,000 | -6,000,000 | -3,000 | — | 0 | 0 | % | 0 | 75,459 | 9,033 | |||||||||||||||||||||||||||||||
KT Estate Inc. | 15,848,819 | 100.0 | % | 1,084,522 | — | — | — | 15,848,819 | 100.0 | % | 1,084,522 | 2,045,125 | 13,361 | |||||||||||||||||||||||||||||||
Next connect PFV | 73,696,974 | 100.0 | % | 24,250 | — | — | — | 73,696,974 | 100.0 | % | 24,250 | 518,441 | -6,519 | |||||||||||||||||||||||||||||||
GE premier CR-REITs | 600,000 | 54.3 | % | 3,000 | -600,000 | -3,000 | — | 0 | 0 | % | 0 | — | — | |||||||||||||||||||||||||||||||
BC card Co., Ltd. | 3,059,560 | 69.5 | % | 633,004 | — | — | — | 3,059,560 | 69.5 | % | 633,004 | 3,801,579 | 101,578 | |||||||||||||||||||||||||||||||
H&C Network | 8,903 | 1.0 | % | 848 | — | — | — | 8,903 | 1.0 | % | 848 | 90,437 | 5,540 | |||||||||||||||||||||||||||||||
KT Sprorts Co., Ltd. | 2,904,000 | 66.0 | % | 14,520 | — | — | — | 2,904,000 | 66.0 | % | 14,520 | 29,524 | -2,039 | |||||||||||||||||||||||||||||||
Autopion Co., Ltd. | 400,000 | 100.0 | % | 2,000 | -400,000 | -2,000 | — | — | — | — | 4,903 | -2,459 | ||||||||||||||||||||||||||||||||
KT Service Bukbu Co., Ltd. | 476,094 | 67.3 | % | 7,092 | — | — | -3,219 | 476,094 | 67.3 | % | 3,873 | 59,341 | 1,128 |
[As of December 31, 2021] | (Units: In Share, Won million) | |||||||||||||||||||||||||||||||||||||||||||
Name of Company or Item | Beginning Balance | Increase (Decrease) | Ending Balance | Financial Facts (Latest fiscal year) | ||||||||||||||||||||||||||||||||||||||||
Number of Shares | Equity Ratio | Book Value | Acquisition (Disposal) | Valuation | Number of Shares | Equity Ratio | Book Value | Total Assets | Net Profits | |||||||||||||||||||||||||||||||||||
Shares | Amounts | |||||||||||||||||||||||||||||||||||||||||||
KT Service Nambu Co., Ltd. | 531,127 | 76.4 | % | 10,160 | — | — | — | 531,127 | 76.4 | % | 10,160 | 62,513 | 1,430 | |||||||||||||||||||||||||||||||
KT MOS Bukbu Co., Ltd. (*1) | 409,991 | 100.0 | % | 6,334 | — | — | — | 409,991 | 100.0 | % | 6,334 | 32,511 | 1,637 | |||||||||||||||||||||||||||||||
KT MOS Nambu Co., Ltd. (*1) | 248,515 | 98.4 | % | 4,267 | — | — | — | 248,515 | 98.4 | % | 4,267 | 37,226 | 2,016 | |||||||||||||||||||||||||||||||
KT Engineering Co., Ltd. (KT ENGCORE) | 1,000,000 | 59.8 | % | 28,000 | 400,000 | 28,000 | — | 1,400,000 | 59.8 | % | 28,000 | 185,850 | -366 | |||||||||||||||||||||||||||||||
KTDS Co., Ltd. (*1) | 2,400,000 | 95.5 | % | 19,616 | — | — | — | 2,400,000 | 95.5 | % | 19,616 | 244,168 | 18,191 | |||||||||||||||||||||||||||||||
KT GDH Co., Ltd. (KT SB Data service) | 7,400,000 | 100.0 | % | 7,544 | — | — | — | 7,400,000 | 100.0 | % | 7,544 | 11,464 | 553 | |||||||||||||||||||||||||||||||
KT M mobile Co., Ltd. | 40,000,000 | 100.0 | % | 102,237 | — | — | — | 40,000,000 | 100.0 | % | 102,237 | 144,175 | 5,918 | |||||||||||||||||||||||||||||||
KT Alpha Co., Ltd. | 22,750,000 | 63.7 | % | 120,078 | 11,804,525 | 10,846 | — | 34,554,525 | 70.5 | % | 130,924 | 390,671 | -8,692 | |||||||||||||||||||||||||||||||
KT M&S Co., Ltd. | 47,400,000 | 100.0 | % | 26,764 | — | — | — | 47,400,000 | 100.0 | % | 26,764 | 241,377 | 3,496 | |||||||||||||||||||||||||||||||
KT Huimangjieum | 300,000 | 100.0 | % | 1,500 | 300,000 | 1,500 | — | 600,000 | 78.1 | % | 3,000 | 6,399 | 622 | |||||||||||||||||||||||||||||||
KT Commerce, Inc. | 266,000 | 19.0 | % | 1,782 | — | — | — | 266,000 | 19.0 | % | 1,782 | 130,889 | 4,158 | |||||||||||||||||||||||||||||||
KT M hows Co., Ltd. | 760,000 | 76.0 | % | 6,794 | -760,000 | -6,794 | — | 0 | 0 | % | 0 | — | — | |||||||||||||||||||||||||||||||
Genie Music Corporation (*1) | 20,904,514 | 36.2 | % | 37,417 | -20,904,514 | -37,417 | — | 0 | 0 | % 0 | 287,986 | 14,288 | ||||||||||||||||||||||||||||||||
Nasmedia Inc. (*1) | 3,742,406 | 44.0 | % | 23,051 | — | — | — | �� | 3,742,406 | 44.0 | % | 23,051 | 322,623 | 22,452 | ||||||||||||||||||||||||||||||
PlayD Co., Ltd. | 3,008,989 | 23.5 | % | 20,000 | — | — | — | 3,008,989 | 23.5 | % | 20,000 | 141,799 | -73 | |||||||||||||||||||||||||||||||
Storywiz Co., Ltd. | 2,800,000 | 100.0 | % | 14,000 | -2,800,000 | -14,000 | — | 0 | 0 | % | 0 | 18,503 | -4,047 | |||||||||||||||||||||||||||||||
KT Music Contents Investment Fund No.1 | 840,000,000 | 23.3 | % | 840 | -840,000,000 | -840 | — | 0 | 0 | % | 0 | — | — | |||||||||||||||||||||||||||||||
KT Music Contents Investment Fund No.2 | 4,000,000,000 | 26.7 | % | 4,000 | — | — | — | 4,000,000,000 | 26.7 | % | 4,000 | 14,985 | -30 | |||||||||||||||||||||||||||||||
KT-Michigan Global Contents Fund | 9,420 | 53.5 | % | 9,420 | — | -9,420 | — | 9,420 | 53.5 | % | 0 | 3,552 | 10,032 |
67
Table of Contents
[As of December 31, 2021] | (Units: In Share, Won million) | |||||||||||||||||||||||||||||||||||||||||||
Name of Company or Item | Beginning Balance | Increase (Decrease) | Ending Balance | Financial Facts (Latest fiscal year) | ||||||||||||||||||||||||||||||||||||||||
Number of Shares | Equity Ratio | Book Value | Acquisition (Disposal) | Valuation | Number of Shares | Equity Ratio | Book Value | Total Assets | Net Profits | |||||||||||||||||||||||||||||||||||
Shares | Amounts | |||||||||||||||||||||||||||||||||||||||||||
KT Investment Co., Ltd. | 4,000,000 | 100.0 | % | 20,000 | — | — | — | 4,000,000 | 100.0 | % | 20,000 | 21,572 | 2,626 | |||||||||||||||||||||||||||||||
KT Strategic Investment Fund No. 2 | 173 | 90.9 | % | 10,245 | -94 | -7,864 | — | 79 | 90.9 | % | 2,381 | 6,434 | -8,537 | |||||||||||||||||||||||||||||||
KT Strategic Investment Fund No. 3 | 45 | 86.7 | % | 4,507 | -16 | -1,560 | — | 29 | 86.7 | % | 2,947 | 5,989 | 735 | |||||||||||||||||||||||||||||||
KT Strategic Investment Fund No. 4 | 190 | 95.0 | % | 19,000 | — | — | — | 190 | 95.0 | % | 19,000 | 15,785 | -688 | |||||||||||||||||||||||||||||||
KT Strategic Investment Fund No. 5 | 125 | 95.0 | % | 12,540 | 65 | 6,460 | — | 190 | 95.0 | % | 19,000 | 19,250 | -381 | |||||||||||||||||||||||||||||||
Korea Telecom America, Inc. | 4,500 | 100.0 | % | 2,376 | — | — | — | 4,500 | 100.0 | % | 2,376 | 4,498 | 712 | |||||||||||||||||||||||||||||||
Korea Telecom Japan Co., Ltd. | 1,671 | 100.0 | % | — | — | — | — | 1,671 | 100.0 | % | — | 2,694 | 1 | |||||||||||||||||||||||||||||||
Korea Telecom China Co., Ltd. | — | 100.0 | % | 2,160 | — | — | — | 4,500 | 100.0 | % | 2,376 | 4,884 | 201 | |||||||||||||||||||||||||||||||
KT Hong Kong Telecommunications Co., Ltd. | 405,000 | 100.0 | % | 460 | — | — | — | 405,000 | 100.0 | % | 460 | 6,613 | 1,313 | |||||||||||||||||||||||||||||||
KT Dutch B.V. | 222,098 | 100.0 | % | 32,359 | -222,098 | -32,359 | — | 0 | 0 | % | 0 | — | — | |||||||||||||||||||||||||||||||
KT Belgium | 81,049,999 | 99.9 | % | 5,489 | -81,049,999 | -5,489 | — | 0 | 0 | % | 0 | — | — | |||||||||||||||||||||||||||||||
KBTO sp.z o.o. | 546,240 | 97.4 | % | — | -546,240 | — | — | 0 | 0 | % | 0 | — | — | |||||||||||||||||||||||||||||||
AOS Ltd. | 1,530,000 | 51 | % | 1,876 | 0 | 2 | — | 1,530,000 | 51.0 | % | 1,878 | 11,539 | 823 |
(*1) | The number of subsidiaries’ treasury stock is deducted from the total number of shares when calculating the equity ratio. |
68
Table of Contents
VI. DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES
Changes since the preparation date |
Inside and outside directors have been changed through the 31, December 2021 as follows.
Name | Date of Birth | Position | Years with the Company | Expiration of Term of Office | ||||||||||
Inside Directors (1) | ||||||||||||||
Hyeon-Mo Ku | | January 13, 1964 | | Representative Director and Chief Executive Officer | 12 | 2023 AGM | ||||||||
Jong-Ook Park | | January 24, 1962 | | President, Head of Corporate Planning Group | 7 | 2022 AGM | ||||||||
Kook-Hyun Kang | | September 8, 1963 | President, Head of Customer Business Group | 11 | 2022 AGM | |||||||||
Outside Directors (1) | ||||||||||||||
Gang-Cheol Lee | | May 6, 1947 | Outside Director, Paju Country Club Co., Ltd. Outside Director Candidate Recommendation Committee | 3 | 2024 AGM | |||||||||
Dae-You Kim | | July 21, 1951 | Outside Director, DB Life Insurance Co., Ltd. Outside Director Candidate Recommendation Committee | 3 | 2024 AGM | |||||||||
Hee-Yol Yu | | January 12, 1947 | | Board Chairperson, Korea Carbon Capture & Sequestration R&D Center | 2 | 2022 AGM | ||||||||
Tae-Yoon Sung | | February 13, 1970 | | Professor, School of Economics, Yonsei University | 2 | 2022 AGM | ||||||||
Hyun-Myung Pyo | | October 21, 1958 | | Outside Director, Hankook Tire & Technology Co., Ltd. | 1 | 2023 AGM | ||||||||
Chung-Gu Kang | | December 12, 1962 | | Professor, School of Electrical Engineering, Korea University | 1 | 2023 AGM | ||||||||
Chan-Hi Park | | December 2, 1964 | | Professor, School of Business, Chung-Ang University | 1 | 2022 AGM | ||||||||
Eun-Jung Yeo | | February 15, 1973 | | Professor, School of Business, Chung-Ang University Outside Director Candidate Recommendation Committee | 1 | 2023 AGM |
2. Senior Management (As of December 31, 2021)
Name | Title and Responsibilities | Year of Birth | ||
Kyunglim Yoon | Head of Group Transformation Division | 1963 | ||
Byung-Sam Park | Senior Executive Vice President, Ethics Office | 1966 | ||
Chang-seok Seo | Senior Executive Vice President, Network Group | 1967 | ||
Jae-Ho Song | Senior Executive Vice President, AI/DX Convergence Business Group | 1966 | ||
Soo-Jung Shin | Senior Executive Vice President, Enterprise Business Group | 1965 | ||
Hyun-Yok Sheen | Senior Executive Vice President, Corporate Management Group | 1968 | ||
Sang-Don Ahn | Senior Executive Vice President, Legal Affairs Office | 1962 | ||
Jung-min Woo | Executive Vice President, IT Planning Office | 1964 | ||
Dong-Sik Yun | Executive Vice President, Cloud/IDC Business Office | 1963 | ||
Bong-Gyun Kim | Executive Vice President, Busan/Gyeongnam Regional Headquarter | 1972 |
69
Table of Contents
Young-woo Kim | Executive Vice President, Group Management Office | 1967 | ||
Young-Jin Kim | Executive Vice President, Financial Management Office | 1967 | ||
Lee-han Kim | Executive Vice President, Institute of Convergence Technology | 1966 | ||
Chae-hee Kim | Executive Vice President, Strategic Planning Office | 1974 | ||
Hoon-bae Kim | Executive Vice President, Media Business Unit | 1963 | ||
Chi-Yong Ahn | Executive Vice President, Northern Seoul/Gangwon Regional Headquarter | 1966 | ||
Chang-yong Ahn | Executive Vice President, Daegu-Gyeongbuk Regional Headquarter | 1966 | ||
Chi-yong Ahn | Executive Vice President, Northern Seoul/Gangwon Regional Headquarter | 1966 | ||
Yul-Mo Yang | Executive Vice President, Public Relations Office, Public Relations Office | 1967 | ||
Kyung-Hwa Ok | Executive Vice President, IT Strategy Unit | 1968 | ||
Gong-hwan Lee | Executive Vice President, Director of Policy Cooperation | 1966 | ||
Seon-joo Lee | Executive Vice President, Group HR Devlopment Office Training Course | 1969 | ||
Changho Lee | Executive Vice President, CEO Support Unit | 1972 | ||
Hyeon-Seuk Lee | Executive Vice President, Chungnam/Chungbuk Regional Headquarter | 1966 | ||
Jong-Taek Lim | Executive Vice President, External Cooperation Office | 1964 | ||
Sang-Kwi Chang | Executive Vice President, Legal Affairs Department 1 | 1968 | ||
Jung-Soo Jung | Executive Vice President, Southern Seoul/Western Seoul Regional Headquarter | 1966 | ||
Hoon Jo | Executive Vice President, SCM Strategy Office | 1966 | ||
Jung-Yong Ji | Executive Vice President, Jeonnam/Jeonbuk Regional Headquarter | 1968 | ||
Chanki Choi | Executive Vice President, Sales Operating Business Unit | 1966 | ||
Jun Go | Senior Vice President, Head of Legal Office Legal P-TF | 1971 | ||
Gang-Bon Koo | Senior Vice President, Customer Business Unit | 1972 | ||
Jaehyung Koo | Senior Vice President, Network Research Technology Support Unit | 1972 | ||
Oh-ryung Kwon | Senior Vice President, Group Affiliate Manager | 1969 | ||
Hye-Jin Kwon | Senior Vice President, Network Strategy Department | 1971 | ||
Hee-geun Kwon | Head of Seoul Metropolitan Area Wholesale Sales Department | 1970 | ||
Kwang-dong Kim | Senior Vice President, Policy Cooperation Office | 1970 | ||
Moo-Seong Kim | Senior Vice President, ESG Management & Implementation office | 1972 | ||
Byung-Kyun Kim | Senior Vice President, Device Business Unit | 1968 | ||
Bong-Ki Kim | Senior Vice President, Director of Convergence Laboratory | 1968 | ||
Sang-Kyoon Kim | Senior Vice President, Management Support Office | 1970 | ||
Seong-ll Kim | Senior Vice President, Chungnam/Chungbuk Network O&M Headquarter | 1966 | ||
Seung-Woon Kim | Senior Vice President, Infra Service Unit | 1968 | ||
Young-sul Kim | Senior Vice President, External Cooperation P-TF | 1967 | ||
Young-sik Kim | Senior Vice President, Head of DX Platform Business Unit | 1972 | ||
Young-In Kim | Senior Vice President, Network Strategy Unit | 1968 | ||
Jae-Kwon Kim | Senior Vice President, Biz Customer Business Unit | 1968 | ||
Jun-Ho Kim | Senior Vice President, Public/Finance Customer Business Unit | 1965 | ||
Pyeong Ryu | Senior Vice President, Jeonnam/Jeonbuk Enterprise Customer Sales Headquarter | 1966 | ||
Sang-ryong Moon | Senior Vice President, IT Consulting Unit | 1967 | ||
Sung-Uk Moon | Senior Vice President, Global Business Unit | 1972 | ||
Young-Il Moon | Senior Vice President, Data & Information Security Unit | 1966 | ||
Hye-Byung Min | Senior Vice President, Enterprise Service DX Unit | 1969 | ||
Soon-ha Park | Senior Vice President, Head of Business Support Unit | 1965 | ||
Yong-Man Park | Senior Vice President, Jeonnam/Jeonbuk Customer Sales Headquarter | 1965 | ||
Jeong-Jun Park | Senior Vice President, Enterprise Customer Business Unit | 1967 | ||
Jeong-Ho Park | Senior Vice President, Customer DX Business Unit | 1970 | ||
Jong-Ho Park | Senior Vice President, Network Control Unit | 1964 | ||
Hyo-Il Park | Senior Vice President, Customer Experience Innovation Unit | 1970 | ||
Soon-min Bae | Senior Vice President, AI2XL Laboratory | 1980 | ||
Seung-Yun Paik | Senior Vice President, Strategic Investment P-TF | 1970 | ||
Ki-Hong Seo | Senior Vice President, Daegu/Gyeongbuk Enterprise Customer Sales Headquarter | 1967 | ||
Young-Soo Seo | Senior Vice President, Network Research Technology Support Unit | 1968 |
70
Table of Contents
Jeong-Hyun Seo | Senior Vice President, Legal Affairs Department 3 | 1971 | ||
Won-je Seong | Senior Vice President, Southern Seoul/Western Seoul Enterprise Customer Sales Headquarter | 1972 | ||
Hoon-Joo Shin | Senior Vice President, Corporate Image Strategy P-TF | 1971 | ||
Jin-Ho Yang | Senior Vice President, Legal Affairs Department 2 | 1973 | ||
Jae-Min Eom | Senior Vice President, Busan/Gyeongnam Customer Sales Headquarter | 1965 | ||
Hun-Yong Oh | Senior Vice President, Enterprise Business Consulting & Implementation Unit 2 | 1966 | ||
Heung-Jae Won | Senior Vice President, Western Seoul Customer Sales Headquarter | 1967 | ||
Young-Kyu Yoo | Senior Vice President, Enterprise Strategic Planning Headquarter | 1971 | ||
Chang-Kyu Yoo | Senior Vice President, Northern Seoul/Gangwon Enterprise Customer Sales Headquarter | 1966 | ||
Kyung Mo Yoon | Senior Vice President, SCM Strategy Unit | 1969 | ||
Jinheon Yoon | Senior Vice President, Media R&D P-TF | 1968 | ||
Mi-Hee Lee | Senior Vice President, CEO Level Consulting Unit | 1970 | ||
Sang-Il Lee | Senior Vice President, Northern Seoul/Gangwon Network O&M Headquarter | 1964 | ||
Sang-ho Lee | Senior Vice President, AI Robot Business Unit | 1975 | ||
Young-Jun Lee | Senior Vice President, Chungnam/Chungbuk Enterprise Customer Sales Headquarter | 1968 | ||
Young-Jin Lee | Senior Vice President, Group HR Unit | 1972 | ||
Yong-Gyoo Lee | Senior Vice President, Busan/Gyeongnam Network O&M Headquarter | 1965 | ||
Jong-Sik Lee | Senior Vice President, Infra DX Laboratory | 1972 | ||
Seung-Hyouk Lim | Senior Vice President, Digital Bio Health Business Unit | 1970 | ||
Jang-Mi Lim | Senior Vice President, Industry Biz 2 P-TF | 1966 | ||
Gil-Sung Jeong | Senior Vice President, Management Strategic Unit | 1974 | ||
Jae-Wook Jeong | Senior Vice President, CEO Office team 1 | 1972 | ||
Seong-Eun Cho | Senior Vice President, S/W Development Unit | 1971 | ||
Young-Sim Jin | Senior Vice President, Group HR Development Academy | 1972 | ||
Kang-Rim Choi | Senior Vice President, AI Mobility Business Unit | 1974 | ||
Sung-Wook Choi | Senior Vice President, Daegu/Gyeongbuk Customer Sales Headquarter | 1965 | ||
Si-Hwan Choi | Senior Vice President, Eastern Seoul Customer Sales Headquarter | 1967 | ||
Joon-Ki Choi | Senior Vice President, AI/BigData Business Unit | 1974 | ||
Ja-Kyung Hahn | Senior Vice President, Industry Biz 1 P-TF | 1971 | ||
Suk-Zoon Huh | Senior Vice President, Institute of Economic & Business Research | 1967 | ||
Tae-Zoon Huh | Senior Vice President, Enterprise Business Consulting & Implementation Unit 1 | 1970 | ||
Sung-Pil Hong | Senior Vice President, Group Real Estate Department | 1965 | ||
Tae-Hyun Hwang | Senior Vice President, Cloud/DX Strategy Department | 1971 |
3. Current Status of Employees
(Unit: Persons, Years, Won million) | ||||||||||||||||||||||||||||
Type | Number of Employees | Average Years in Continuous Service | Total Payroll | Average Payroll per Person | Non-affiliated workers | |||||||||||||||||||||||
General | Other | Total | ||||||||||||||||||||||||||
Total | 21,087 | 672 | 21,759 | 21.7 | 1,991,370 | 95 | 165 |
• | Number of employees as of December 31, 2021. |
• | Average years in continuous services was calculated based on workers excluding fixed-term workers. |
• | Total Payroll and Average payroll per person are the amount of earned income under the income tax law of regular and unregistered executives. |
71
Table of Contents
4. Remuneration to Executive Officers
A. | Total Remuneration paid to Directors (including Outside Directors) and Members of the Audit Committee (Auditors) |
(Unit: Won million) | ||||||||||||
Category | Total Amount Paid | Amount Approved by the General Meeting of Shareholders | Average Amount Paid per Person | |||||||||
3 Inside Directors | 4,979 | 5,800 | 1,660 | |||||||||
8 Outside Directors | 826 | 104 |
• | The total amount paid and the average amount paid per person includes severance pay for former CEO and former inside directors following the Severance Pay Regulation for Executives. |
B. Standards for payment of remuneration for directors and auditors
(1) Standards for payment of remuneration for CEO and Inside Directors
(a) Earned income
Earned income consists of salary(base and position pay), bonus(short-term and long-term bonus), and other income.
• | Base pay : The amount determined by the board of directors’ resolution and the contract for delegation of management officers shall be paid 1/12 per month on the date of remuneration payment by the company. |
• | Position pay : The amount determined by the board’s resolution and the contract for delegation of executive officers according to the importance of the position he performs shall be paid 1/12 per month on the date of remuneration payment by the company. |
• | Short-term bonus : Short-term bonuses are paid after the resolution of the board of directors, reflecting the results of the evaluation of the annual target. The measurement index consisting of sales, operating profit, etc. and the non-measuring index for the major matters of the year are collected and paid within the range of 0-180% of the base salary. |
• | Long-term bonus : It can be paid up to 0-180% of the base salary according to the management contract and the delegated contract, and it is paid in shares with limited transfer. (Payment based on TSR and Group EBITDA achievement) |
• | The long-term performance bonus in 2020 has been changed to be paid within the range of 0~140% of the base salary. |
• | Other income : Payment of medical examination expenses, medical expenses, etc. in accordance with the standards for executive benefits. |
(b) Retirement income
Retirement income is determined by the average monthly wage and number of years of service. The CEO shall pay five times the average monthly wage multiplied by the number of years of service, and the Inside director shall pay three times the amount.
72
Table of Contents
(2). Standards for payment of remuneration for Outside Directors
• | The monthly fixed amount : It shall be paid on the company’s remuneration payment date at the same level every month as determined by the board of directors. |
• | Attendance expenses : Attendance expenses are calculated based on the amount determined by the board of directors’ resolution. This will be settled according to the number of meetings of the board of directors and committees and paid on the next month’s remuneration payment date. |
• | Stock compensation : In accordance with the resolution of the board of directors, stock compensation shall be paid in the following year with a transfer restriction shares of 20 million won per person. |
• | Other income : Payment of medical examination expenses, etc. in accordance with the standards for supporting outside directors |
C. Executives and employees with a remuneration of 500 million won or more
(Unit: Won million) | ||||||
Name | Position | Total Amount Paid | ||||
Yoon Yong Park | Former President | 2,020 | ||||
Hyeon-Mo Ku | Chief Executive Officer | 1,522 | ||||
Jong-wook Park | President | 985 | ||||
Kook-hyun Kang | President | 806 |
• | The total amount paid includes severance pay for former CEO and former inside directors following the Severance Pay Regulation for Executives. |
Name | Type | Total (KRW | Note | |||||
Yoon Yong Park | Earned income | Salary | 74 | Based on the resolution of the board of directors, the total base pay was 294 million won | ||||
Incentives | 399 | The incentives has been decided by evaluating revenue and operating profits of the previous year as the quantitative indicators and considering the business competitiveness and the status as the qualitative indicators comprehensively. The short-term incentives can be 0~140% of the base pay and Long-term performance pay is a comprehensive evaluation of total shareholder return, group EBITDA achievement, and group sales achievement can be paid within the range of 0~95% of the base pay. In accordance with the resolution of the board of directors, the performance bonus of the previous year was comprehensively evaluated and bonus of KRW 399 million was paid. * Executive Director at the time of 2020 | ||||||
Stock option | — | — | ||||||
Fringe benefits | 7 | Including medical expenses, health checkup costs | ||||||
Retirement income | 1,540 | In accordance with the executive retirement payment, 3 months prior to the date on which the reason for resignation occurred regulations approved at the general meeting of shareholders It was calculated by reflecting the length of service (13.3 years) in the base salary (the sum of the base pay and the position pay, 115.8 million won). | ||||||
Others | — | — |
73
Table of Contents
Name | Type | Total (KRW | Note | |||||
Hyeon-Mo Ku | Earned income | Salary | 556 | Based on the resolution of the board of directors, the total base pay was 356 million won and the total position pay was 200 million won. | ||||
Incentives | 946 | Based on the resolution of the board of directors, the incentives has been
- In accordance with the resolution of the board of directors, the performance
* KRW 946 million paid as a performance bonus includes the amount | ||||||
Stock option | — | — | ||||||
Fringe benefits | 20 | Including medical expenses, health checkup costs | ||||||
Retirement income | — | — | ||||||
Others | — | — | ||||||
Name | Type | Total | Note | |||||
Jong-wook Park | Earned income | Salary | 454 | Based on the resolution of the board of directors, the total base pay was 294 million won and the total position pay was 160 million won. | ||||
Incentives | 509 | Based on the resolution of the board of directors, the incentives has been
* KRW 509 million paid as a performance bonus includes the amount | ||||||
Stock option | — | — | ||||||
Fringe benefits | 22 | Including medical expenses, health checkup costs | ||||||
Retirement income | — | — | ||||||
Others | — | — |
74
Table of Contents
Name | Type | Total (KRW | Note | |||||
Kook-hyun Kang | Earned income | Salary | 451 | Based on the resolution of the board of directors, the total base pay was 294 million won and the total position pay was 160 million won. | ||||
Incentives | 345 | Based on the resolution of the board of directors, the incentives has been decided by evaluating the management results comprehensively. The short-term incentives can be 0~140% of the base pay and the long-term incentives can be 0~95% of the base pay. - In accordance with the resolution of the board of directors, the performance of the previous year was comprehensively evaluated and a performance bonus of KRW 345 million was paid. * Executives at the time of 2020 * KRW 345 million paid as a performance bonus includes the amount calculated by the stock price at the time of the number of shares paid to an individual as a long-term performance bonus | ||||||
Stock option | — | — | ||||||
Fringe benefits | 10 | Including medical expenses, health checkup costs | ||||||
Retirement income | — | — | ||||||
Others | — | — |
D. Grant and Exercise of Stock Option
* Not applicable as of December 31, 2021.
75