6-K - KT - Equibles

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 6-K

REPORT OFFOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR15d-16 OF

THE SECURITIES EXCHANGE ACT OF 1934

For the month of April 2022

Commission File Number 1-14926

KT Corporation

(Translation of registrant’s name into English)

90, Buljeong-ro,

Bundang-gu,Seongnam-si,

Gyeonggi-do,

Korea

(Address ofprincipal executive offices)

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

Form 20-F ☒ Form 40-F ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐

Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes ☐ No ☒

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- _______________

SIGNATURES

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

Dated: April 26 2022
KT Corporation
By:	/s/ Seunghoon Chi
Name:	Seunghoon Chi
Title:	Vice President
By:	/s/ Sanghyun Cho
Name:	Sanghyun Cho
Title:	Director

EX-99.1

Exhibit 99.1

ANNUAL FINANCIAL REPORT

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

I. Corporate General			2
	1.	Corporate Purpose of KT Corporation	2
	2.	History	4
	3.	Total Number of Shares and Related Matters	5
II. Business Details			6
	1.	(Manufacturing Service) Business Overview	6
	2.	(Manufacturing Service) Main Products and Services	8
	3.	(Manufacturing Service) Sales	18
	4	(Manufacturing Service) Other References	26
	5	(Finance) Business Overview	26
	6	(Finance) Business Status	27
	7.	(Finance) Derivatives Transaction	27
	8.	(Finance) Business Facilities	28
	9.	(Finance) Financial Stability	28
	10.	Research and Development Activities	31
	11.	Other Matters Necessary for Making Investment Decisions	33
III. Financial Information			34
	1.	Summary of Financial Statements (Consolidated)	34
	2.	Summary of Financial Statements (Separate)	35
IV. Auditors’ Opinion			36
	1.	Auditor’s Opinion on the Consolidated Financial Statements	36
	2.	Audit services contract	36
	3.	Non-Audit services contract	37
	4.	The results of the Internal Audit Organization’s discussion with the auditor	37
	5.	Dividends and Related Matters	38
V. Management and Affiliated Companies			39
	1.	Overview of the Board of Directors and Committees	39
	2.	Audit Committee	58
	3.	Matters on Shareholder’s exercise of Voting Rights	66
	4.	Equity Investments	67
VI. Directors, Senior Management and Employees			69
	1.	Directors	69
	2.	Senior Management	69
	3.	Current Status of Employees	71
	4.	Remunerations of Executive Officers	72

I. Corporate Generals

1.	Corporate Purpose of KT Corporation

Business Objectives

1.	Information and communications business;
2.	New media business and internet multimedia broadcasting business
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3.	Development and sale of software and contents;
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4.	Sale and distribution of information communication equipment;
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5.	Testing and inspection of information communication equipment, device or facilities;
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6.	Advertisement business;
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7.	Retail business via telephone, mail order or online;
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8.	IT facility construction business, electrical construction business and fire protection facility business<br>
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9.	Real estate and housing business
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9(1).	Business facilities management and business support service industry
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10.	Electronic banking and finance business;
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11.	Education and learning service business;
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12.	Security service business (Machinery system surveillance service, Facilities security service, etc);<br>
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13.	Research and technical development, education, training and promotion, overseas businesses, and export and<br>import, manufacture and distribution related to activities mentioned in Subparagraphs 1 through 12
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14.	Frequency-based telecommunications services and other telecommunications services
15.	Value-added telecommunications business
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16.	Manufacture, provision (screening) and distribution of contents such as musical records, music videos, movies,<br>videos and games
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17.	Issuance and management of pre-paid electronic payment instruments, and<br>businesses related to electronic finance such as payment gateway services
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18.	Sales and leasing of equipment and facilities related to the activities mentioned in Subparagraphs 14 through<br>17
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19.	Any overseas business or export and import business related to activities mentioned in Subparagraphs 14 through<br>18
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20.	Tourism
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21.	(Deleted)
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22.	New and renewable energy, energy generation business, electrical system design business and electrical safety<br>management agent business
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23.	Health Informatics business
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24.	Manufacture of communication equipment, device or facilities for military purpose
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25.	Energy diagnostics business, professional business relating to energy conservation, and any and all other<br>business in the field of energy use rationalization
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26.	Information securities, any and all other business in the field of identification service<br>
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27.	Activities of management consultancy
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28.	Warehousing and storage
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29.	Total construction business
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30.	Specialized design services
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31.	Freight Transportation Business, Cargo Transportation Intermediation Business
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32.	Manufacturing and sales of medical device
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33.	Any and all other activities or businesses incidental to or necessary for attainment of the foregoing<br>
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34.	Personal information management business and ancillary work
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2.	History
A.	Changes since Incorporation
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(1)	Date of Incorporation: December 10, 1981
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(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,<br>in which KT held a 54.25% interest, and on June 1, 2009, the merger was completed.
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•	At the annual general shareholders’ meeting held on March 11, 2011, KT’s shareholders approved the<br>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<br>the addition of military communication equipment, devices and facility manufacturing to its business objectives.
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•	Mr. Suk Chae Lee was reelected as the Chief Executive Officer (“CEO”) and President of KT at the<br>annual general shareholders’ meeting held on March 16, 2012.
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•	At the annual general shareholders’ meeting held on March 15, 2013, KT’s shareholders approved the<br>addition of energy inspection, energy conservation, and the energy use rationalization business to KT’s business objectives.
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•	Mr. Chang-Gyu Hwang was elected as the CEO and President of KT at the extraordinary general<br>shareholders’ meeting held on January 27, 2014.
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•	At the annual general shareholders’ meeting held on March 25, 2016, KT’s shareholders approved the<br>addition of Information securities, any and all other business in the field of identification service.
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•	Mr. Chang-Gyu Hwang was re-elected as the CEO and President of KT at<br>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<br>warehousing & storage
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•	At the annual general shareholders’ meeting held on March 23, 2018, KT’s shareholders approved the<br>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.
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•	Mr. Hyeon-Mo Ku was elected as the Representative Director of KT at the annual general shareholders’<br>meeting held on March 30, 2020.
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•	At the annual general shareholders’ meeting held on March 31, 2021, KT’s shareholders approved the<br>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
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A.	Status of Capital Increase/Decrease (As of December 31, 2021) (Unit: KRW million, Shares)** **
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Type of Stock	Category	40^th^<br>(The end of 2021)		39^th^<br>(The end of 2020)		38^th^<br>(The end of 2019)
---	---	---	---	---	---	---	---
Common<br><br><br>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<br><br><br>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 (Retired)	Type of<br><br><br>Shares<br> <br>Issued<br><br><br>(Retired)	Details of Issued (Retired)Shares
---	---	---	---	---	---	---
		Type	Number of Issued(Retired) Shares	Par Value<br><br><br>per Share	Par Value ofIssued per Share	Note
—	—	—	—	—	—	—
B.	Total Number of Shares (As of December 31, 2021) (Unit: Shares) ** **
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Category		Type of Shares				Total
---	---	---	---	---	---	---	---
		Common shares		Preferredshares
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<br><br><br>Reduced<br><br><br>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

C. Acquisition and Disposal of Treasury Shares (As of December 31, 2021) (Unit: Shares)

Method of Acquisition		Type ofShares
Direct Acquisition	Over-the-<br> <br>Counter	Common<br>shares	14,719,678	—	1,566,902	—	13,152,776
		Preferred<br>shares	—	—	—	—	—
	Exchange-<br>Traded	Common<br>shares	—	—	—	—	—
		Preferred<br>shares	—	—	—	—	—
Indirect Acquisition<br><br><br>(e.g. Trust Contract)		Common<br>shares	4,550,000	7,600,886	—	—	12,150,886
		Preferred<br>shares	—	—	—	—	—
Total		Common<br>shares	19,269,678	7,600,886	1,566,902	—	25,303,662
		Preferred<br>shares	—	—	—	—	—
•	The above “Beginning of Term” means as of January 1, 2021 and “End of Term” means as of<br>December 31, 2021, which is the most recent date of shareholder registry.
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•	Details of Disposition of treasury shares from January 1, 2021 to December 31, 2021 are as follows.<br>
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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

II. Business Details

Overview
1.	(Manufacturing Service) Business Overview
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A.	ICT : KT
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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.

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.).

2.	(Manufacturing Service) Main Products and Services
A.	ICT : KT
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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
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<br>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.<br>
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2019 (Unit : Korean won, VAT included)

Plan
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.
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•	IPTV IPT
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2021 (Unit : Korean won, VAT included)

Plan
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) ****

Plan
TV Basic	18,150	17,270	16,390	14,740	12,100
We launched the TV Basic in April 2020.
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2019 – No change

2018 (Unit : Korean won, VAT included)

Plan	Monthly Rate
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
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The below rate is an amount that does not reflect additional expenses such as modem rental fee.

2021 (Unit : Korean won, VAT included)

Plan
GiGA Wi Max 2.5G(ax)	78,100	69,300	60,500	45,650<br><br><br>	40,150<br><br><br>
GiGA Wi Max 1G(ax)	72,600	63,800	55,000	40,150<br><br><br>	34,650<br><br><br>
GiGA Wi Max 500M(ax)	63,800	56,100	48,400	35,750<br><br><br>	30,250<br><br><br>
GiGA Wi Max 100M(ax)	57,200	48,950	40,700	24,750<br><br><br>	24,750<br><br><br>
Multinet Essence	60,500	53,900	48,400	44,000<br><br><br>	38,500<br><br><br>
Multinet Basic	51,700	46,200	41,800	38,500<br><br><br>	33,000<br><br><br>
Multinet Slim	45,100	39,600	34,100	27,500<br><br><br>	27,500<br><br><br>
The rates are the amount applied to the GiGA Wi Max 2.5G/1G/500M/100M plans with 3 year term when IPTV, mobile<br>and Broadband are combined. The Multinet Essence/Basic/Slim rates are the amount applied to the 3 years term when multinet(TV) is combined
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2020 (Unit : Korean won, VAT included)

Plan
GiGA Wi Max 2.5G(ac)	78,100	69,300	60,500	45,100<br><br><br>	39,600<br><br><br>
GiGA Wi Max 1G(ac)	72,600	63,800	55,000	39,600<br><br><br>	34,100<br><br><br>
GiGA Wi Max 500M(ac)	63,800	56,100	48,400	35,200<br><br><br>	29,700<br><br><br>
GiGA Wi Max 100M(ac)	57,200	48,950	40,700	24,200	24,200

The rates are the amount applied to the GiGA Wi Max 2.5G/1G/500M/100M plans with 3 year term when IPTV, mobile<br>and Broadband are combined.

2019 (Unit : Korean won, VAT included)

Plan
10 GiGA Max 10G<br><br><br><br>	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.
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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

GiGA Wi internet	GiGA Wi	Internet Wide
the Internet that reassures the<br><br><br>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
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2019, 2020 and 2021 – No change

•	Bundled Rate Plans
2021	2020	2019
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<2021.04><br> <br>● Mobile bundle<br>promotion ‘between friends’<br> <br>- Equivalent discount benefit as the ‘Mobile bundle pack for my family’ for foreigners of same<br>nationality<br> <br><br> <br><2021.05><br><br><br>● Renewal of the CEO Success Pack<br> <br>- Added mobile bundle<br>service<br> <br>- Integrated VAN billing and relaxation of the discount condition<br> <br><br><br><br><2021.08><br> <br>● Promotion of the Premium Single bundling<br>package<br> <br>- 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<br>LTE subscriber)<br> <br><br> <br><2021.10><br><br><br>● Pre-marriage Bundle Promotion<br><br><br>- Lump sum discount of mobile service for soon to be married or newly married couple for maximum 6 months	<2020.04><br> <br>● Renewal of the Internet<br>Telephony Home bundle plan<br> <br>- Change of the discount amount from 2,200 won to 1,100 won of the Internet Telephony Home bundle plan if bundled with Home<br>Telephony with 3 year term<br> <br><br> <br><2020.06><br><br><br>● Renewal of the Home Telephony TPS bundle plan within home bundle<br><br><br>- 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<br>including IPTV<br> <br><br> <br><2020.07><br><br><br>● CEO Success Pack launch	<2019.04><br> <br>● Change of the bundled<br>discount rate about fixed rate discount of 5G plan<br> <br>- Discount rate 10/15/20/25/30% to bundled mobile 1/2/3/4/5 line<br><br><br><br> <br><2019.08><br><br><br>● 5G Premium Family bundle discount plan promotion (08.09~12.31)<br><br><br>- Term : sign up at least two 5G mobile line starting from ~~W~~80k<br><br><br>- 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<br>66k for LTE mobile line.)

B.	Satellite TV – KT Skylife
•	TV (Unit : Korean won, VAT Included)
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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
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Bundle : The rate if bundled between TV and Broadband
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•	Broadband (Unit : Korean won, VAT Included)
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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,<br>etc.
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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<br>won.
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•	Mobile (Unit : Korean won, VAT Included)
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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<br> <br>Streaming (Mobile<br>only)		7,400		7,400		7,400
		Smart streaming +<br> <br>Download (30<br>songs)		—		10,800		10,800
	MP3 Download + Unlimited Streaming	Smart streaming +<br> <br>Download (50<br>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<br> <br>(Genie+<br>Millie’s library)		13,000		—		—

•	Others—KT CS (Unit : Korean won, VAT excluded)
Item	2021	2020	2018
---	---	---	---
114 directory assistance	170 won<br> <br>(190 won at Night/Holidays)	120 won<br> <br>(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,<br>respectively, since February 1, 2021.
---
•	Others—KT IS (Unit : Korean won, VAT excluded)
---	---
Item	2021			2020				2019
---	---	---	---	---	---	---	---	---	---
114 directory assistance	170 won<br><br><br>(190 won at Night/Holidays)				120 won<br> <br>(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,<br>respectively, since February 1, 2021.
---
•	Others—KT M mobile (Unit : Korean won, VAT included)
---	---

Mobile (Postpaid)

Products	2021		2020		2019
Mobile<br> <br>(Postpaid)	<2021.02><br> <br>500 MB/100min<br><br><br><br> <br><2021.11><br><br><br>5G 2GB/unlimited voice call<br> <br>5G 4GB/unlimited voice call6<br><br><br>5G 2GB/unlimited voice call<br> <br><br><br><br><2021.12><br> <br>5G 10GB/unlimited voice call<br><br><br>5G 110GB/unlimited voice call6<br><br><br>5G 220GB/unlimited voice call	18,000<br><br><br><br> <br><br><br><br>25,500<br> <br>29,000<br><br><br>33,000<br> <br><br><br><br><br> <br>50,000<br><br><br>69,000<br> <br>74,000	<2020.11><br> <br>3G 30MB/180min<br><br><br>3G 30MB (Voice-call)<br> <br>LTE Data 500M/60min<br><br><br>LTE Data 500M/100min<br> <br>LTE Data 500M/200min<br><br><br>LTE Data 500M/300min<br> <br>LTE Data 1G/60min<br><br><br>LTE Data 1G/100min<br> <br>LTE Data 1G/200min<br><br><br>LTE Data 1G/300min<br> <br>LTE Data 3G/100min<br><br><br>LTE Data 3G/200min<br> <br>LTE Data 3G/300min	26,400<br><br><br>34,100<br> <br>19,800<br><br><br>20,900<br> <br>23,100<br><br><br>25,300<br> <br>22,000<br><br><br>23,100<br> <br>25,300<br><br><br>27,500<br> <br>29,700<br><br><br>31,900<br> <br>34,100	<2019.3><br> <br>LTE Data<br>0MB/30min<br> <br>LTE 0MB (Voice-call)<br> <br>Economy Kids basic<br><br><br>Economy Kids smart<br> <br>Economy junior study 1.5GB<br><br><br>Economy junior study 3GB<br> <br>Economy junior smart 6GB<br><br><br>Economy junior smart 10GB<br> <br><br><br><br><2019.4><br> <br>Sky practical 1.2GB<br><br><br>Sky practical 4GB<br> <br>Sky practical 6GB<br><br><br>Sky practical 10GB+<br> <br><br><br><br><2019.8><br> <br>LTE economy 3GB<br><br><br>LTE economy 5GB<br> <br><br><br><br><2019.10><br> <br>LTE reassurance 1.5G<br><br><br>LTE reassurance 2.5G	8,800<br><br><br>27,500<br> <br>12,100<br><br><br>18,700<br> <br>27,500<br><br><br>29,700<br> <br>34,100<br><br><br>38,500
						24,800<br><br><br>36,300<br> <br>39,600<br><br><br>60,000<br> <br><br><br><br><br> <br>31,900<br><br><br>40,700<br> <br><br><br><br><br> <br>26,400<br><br><br>31,900

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

Products	2021
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

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 ofRevenue (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>

LOGO

<B2B>

LOGO

Sales Channels

<B2C>

LOGO

<B2B>

LOGO

(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<br>adoption of differentiated 5G/LTE smartphones and new forms of emerging devices.
•	Network quality differentiation : 5G first C-DRX Application and 5G<br>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<br>providing unlimited data across all plans
---	---
•	Segment marketing : Introducing products exclusively for young customers such as Y super pan, Y24 and providing<br>premium single bundled rate plan optimized for single-person households
---	---
•	Loyalty program : A variety of mobile phone replacement programs and installment plans, including<br>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<br>charge through affiliated cards, and differentiated mobile phone insurance products.
---	---

(b) Broadband Internet Service

•	Solidifying a No.1 market stance with active GiGA investment and wire-wireless bundling competitiveness<br>
•	Market leading with 10G internet
---	---
•	Suggest the new internet paradigm by introducing ‘GiGA Wi internet’ which comes with new concept of<br>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<br>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<br>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<br>patterns.
---	---

Acquire lots of new lines by utilizing B2C/B2C order business such as installment business for expanding for mobile infrastructure.

•	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<br>plan
---	---
•	SOHO, small business customer : Pushing to sign up for converged products including Telephone manager, Ringo<br>
---	---
•	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<br>
---	---

(d) IPTV Service

•	Introducing products that reflect customer preferences
•	Based on AI, organizing personalized content and strengthening the recommendation
---	---

•	Differentiation of technologies such as subminiature and wireless set-top<br>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<br>written in accordance with the previous Standard, K-IFRS 1017.
---
Platform revenue: Advertisement revenue + Home shopping transmission fee +<br>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
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, %) ****

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<br>written in accordance with the previous Standard, K-IFRS 1017.
---

(2) Sales Organization andChannels

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<br>disclosed in 2021.
---

(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.

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.

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.

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.

6. (Finance) Business Status

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.<br>
---

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		—		—

B. Profit and Loss related with Derivatives at 4Q21 and 3Q21

(Unit: KRW million)

Item	4Q21				3Q21
	Profit and Lossfrom valuation		Profit and Lossfrom Transaction		Profit and Lossfrom valuation		Profit and Lossfrom Transaction
Drag-along Right		47,039		—		—		—

8. (Finance) Business Facilities

A. Branch offices and other establishments

(Unit: KRW million)

Region
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
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					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

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<br><br><br>(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 ofEconomic 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)
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

(b) Credit Card Usage in Korea (Unit : KRW billion)

	Credit Card Usage
Category	Total		Lump-Sum<br>Payment		Installment<br>Payment		Card Loan<br>(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
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

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
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 31^st^ 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
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 ((<br><br><br><br>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 (<br><br><br><br>2)		0.68	%	0.66	%	0.68	%
<br>1:	Total costs before deducted the subsidy from government
---	---
<br>2:	Rate of Total costs before deducted the subsidy from government and Total Revenue
---	---

B. R&D Organization Structure (KT)

●	Institute of Convergence Technology

LOGO

●	Main Mission
•	Securing core technologies to strengthen future business and business competitiveness
---	---
•	Establishing mid- and long-term technology strategies for leading future<br>technologies
---	---
•	Developing competitive technologies and supporting commercialization to strengthen business competitiveness<br>
---	---
•	Developing and securing core technologies for mid- to long-term future<br>
---	---
•	NW Platformer based on Smart Connectivity and market&customers
---	---
•	Development of network efficiency and optimization technology to strengthen infrastructure competitiveness<br>
---	---
•	Realization of operation excellence based on AI/SDN2.0 and completion of intelligent control operating system<br>
---	---
•	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<br>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<br>business
---	---
•	Development of Network Efficiency and Optimization Technology for the Competitiveness of GiGA Infra Research<br>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
---	---

•	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<br>
---	---
•	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<br>
---	---
•	Development of industry AI core technologies/services such as digital twin, vision, and sound<br>
---	---
•	Establish an efficient and agile commercialization system of future technologies based on customer<br>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<br>
---	---
•	Securing the basis for promoting the Big Thing business through cooperation/sourcing with key partners<br>
---	---
•	Realization in Fast Delivery from discovery of future growth engines to commercialization through<br>‘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.

•	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

III. Financial Information

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

Earnings per share attributable to the equity holders of the Controlling Company during the year<br>(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<br>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

IV. Auditors’ Opinion

1. Auditors’ opinion on the consolidated/separate financial statements

Fiscal Year	Auditor	AuditComments	Issues noted	Key Audit Matters
2021	Samil PwC	Unqualified	Not applicable.	1. Cash-Generating Unit Impairment Assessment in Parent<br><br><br>2. Business Combination Accounting-HyundaiHCN(Consoliated)<br> <br>3.<br>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<br>calculation method.	Cash-Generating Unit Impairment Assessment
2019	Samil PwC	Unqualified	Not applicable	1. Impairment of investment in subsidiaries, associates and joint ventures<br><br><br>2. Cash-Generating Unit Impairment Assessment

2. Audit services contract (Unit : millions of Korean won, hours)

Fiscal Year	Auditor	Contents	Contractual				Actual
			Compensation		TotalTime		Compensation		TotalTime
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<br>
---
Category	2021	2020	2019
---	---	---	---
1st quarter review	From April 1, 2021 to May 15, 2020	From April 1, 2020<br> <br>to May 15,<br>2020	From April 13, 2019 to May 15, 2019

2nd quarter review	From July 12, 2021 to August 17, 2021	From July 13, 2020<br> <br>to August 14,<br>2020	From July 13, 2019<br> <br>to August 14,<br>2019
3rd quarter review	From October 11, 2021 to November 15, 2021	From October 15, 2020<br><br><br>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<br><br><br>to September 30, 2021,<br> <br>From<br>November 16, 2020<br> <br>to December 31, 2021	From May 18, 2020<br><br><br>to June 30, 2020,<br> <br>From<br>August 18, 2020<br> <br>to September 29, 2020,<br><br><br>From November 17, 2020<br><br><br>to December 31, 2020	From May 20, 2019 to June 28, 2019, From August 19, 2019<br><br><br>to September 30, 2019,<br> <br>From<br>November 18, 2019<br> <br>to February 5, 2020
Early proof audit	From May 9, 2021<br><br><br>to December 30, 2021	From May 11, 2020<br><br><br>to December 24, 2020	From May 6, 2019<br><br><br>to December 27, 2019
Internal Accounting Management System Audit (Review)	From May 9, 2021<br><br><br>to March 10, 2022	From May 11, 2020<br><br><br>to March 9, 2021	From May 6, 2019<br><br><br>to March 10, 2020
Update Early Proof Audit Procedure and Financial Statement Audit	From January 3, 2022<br><br><br>to March 10, 2022	From January 2, 2021<br><br><br>to March 9, 2021	From January 2, 2020<br><br><br>to March 10, 2020

3. Non-Audit services contract (Unit : millions of Korean won)

Fiscal Year	Contract date	Contents	Service period
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,<br> <br>- Audit committee,<br>executive secretary, Compliance officer, etc.<br> <br>- Auditor : 3 people (Director of Business Conductor, etc.)	A face-to-face meeting	- Report on the results of external auditors’<br>end-of-term audit of 2020<br> <br>- Results of Key Audit Matters
March 4, 2021	- Audit committee, executive secretary, Compliance officer, etc.<br><br><br>- 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,<br> <br>- Audit committee,<br>executive secretary, Compliance officer, etc.<br> <br>- Auditor : 3 people (Director of Business Conductor, etc.)	A face-to-face meeting	- Annual audit plan for 2021<br> <br>- Scope and timing<br>of audit, independence
May 11, 2021	- KT Audit committee,<br> <br>- Audit committee,<br>executive secretary, Compliance officer, etc.<br> <br>- Auditor : 2 people (Director of Business Conductor, etc.)	A face-to-face meeting	- Results of the first quarter of 2020 review

May 11, 2020	- Audit committee, executive secretary, Compliance officer, etc.<br><br><br>- 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,<br> <br>- Audit committee,<br>executive secretary, Compliance officer, etc.<br> <br>- 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.<br><br><br>- 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,<br> <br>- Audit committee,<br>executive secretary, Compliance officer, etc.<br> <br>- 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,<br> <br>- Audit committee,<br>executive secretary, Compliance officer, etc.<br> <br>- 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.<br><br><br>- 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<br>Won)			450,394		326,487		269,766
Year-end Share Dividend (in Millions of<br>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.
---	---

•	Cash dividend yield(%) is the percentage of dividends per share against the arithmetic average price of the final<br>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<br>career.

• The Number of Outside Directors and its change

The Numberof Directors
		Appointment		Dismissal		Interim resignation
11	8		2		—		—
Numbers are results of the 39^th^ AGM 2021.<br>
---

(2) Major Activities of the Board of Directors

Order	Date	Subject	Result ofDiscussion	Outside Director								Inside Director
				Dae-You<br>Kim	Gang-<br>Cheol Lee	Hee-Yol<br>Yu	Tae-Yoon<br><br><br>Sung	Hyun-<br>Myung<br>Pyo	Chung-Gu<br><br><br>Kang	Chan-Hi<br><br><br>Park	Eun-Jung<br><br><br>Yeo	Hyeon-Mo<br><br><br>Ku	Yoon-<br>Young<br>Park	Jong-Ook<br><br><br>Park
				Attendance<br>100%	Attendance<br>84.6%	Attendance<br>100%	Attendance<br>100%	Attendance<br>92.3%	Attendance<br>92.3%	Attendance<br>100%	Attendance<br>100%	Attendance<br>50%	Attendance<br><br><br>0%	Attendance<br>100%
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

Order	Date	Subject	Result ofDiscussion	Outside Director								Inside Director
				Dae-You<br>Kim	Gang-<br>Cheol Lee	Hee-Yol<br>Yu	Tae-Yoon<br><br><br>Sung	Hyun-<br>Myung<br>Pyo	Chung-Gu<br><br><br>Kang	Chan-Hi<br><br><br>Park	Eun-Jung<br><br><br>Yeo	Hyeon-Mo<br><br><br>Ku	Yoon-<br>Young<br>Park	Jong-Ook<br><br><br>Park
				Attendance<br>100%	Attendance<br>84.6%	Attendance<br>100%	Attendance<br>100%	Attendance<br>92.3%	Attendance<br>92.3%	Attendance<br>100%	Attendance<br>100%	Attendance<br>50%	Attendance<br><br><br>0%	Attendance<br>100%
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
---	---

2021. 3. 29 the 39^th^ 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<br>
---	---
Order	Date	Subject	Result of Discussion	Outside Director								Inside Director
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
				Dae-You Kim	Gang-Cheol<br>Lee	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<br><br><br>84.6%	Attendance 100%	Attendance 100%	Attendance 100%	Attendance 100%	Attendance 100%	Attendance 100%	Attendance<br><br><br>100%	Attendance<br><br><br>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

6th	2021.<br> <br>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.<br> <br>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

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

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

(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<br><br><br>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<br><br><br>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<br><br><br>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<br><br><br>ø See V. 1.(4)<br>Independence of the Board of Directors for the Outside Director Candidate Recommendation Committee<br> <br>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<br>Yeo	Matters related with financial and performance audit<br><br><br>ø See V. 2. Audit<br>system<br> <br>ø Commercial<br>Law §542: 11 (Audit Committee) 1st article<br><br><br>ø Article 43(Audit<br>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 :<br> <br><br><br><br>Matters about approval of using business opportunities of company, Transaction between directors and company, Transactions which need to be approved by the<br>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

(b) Activities of the Committees under the Board of Directors

•	President Candidate Examination Committee : Not applicable
•	Corporate Governance Committee
---	---
Order	Meeting<br><br><br>Date	Agenda	Results<br><br><br>of discussion	Outside Director				Inside Director
---	---	---	---	---	---	---	---	---
				Gang-Cheol Lee	Dae-You Kim	Hee-Yol Yu	Hyun-Myung Pyo	Jong-Ook<br>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 ofDirectors” for details
---	---
•	Audit Committee : Refer to “2. Audit System major Activities of the Audit Committee” for details
---	---
•	Evaluation & Compensation Committee
---	---
Order	Meeting<br><br><br>Date	Agenda	Results<br><br><br>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

ø	The 4th Board Meeting of 2021 (2021.3.30) :
•	The Evaluation & Compensation Committee was formed by outside director<br>Tae-Yoon Sung(Chairperson), Hee-Yol Yu, Hyun-Myung Pyo, Chan-Hi Park
---	---
Order	Meeting<br><br><br>Date	Agenda	Results<br><br><br>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<br><br><br>Date	Agenda	Results<br><br><br>of discussion	Inside Director
---	---	---	---	---	---	---
				Hyeon-Mo Ku	Yoon-Young Park	Jong-Ook<br>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

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 39^th^ AGM on March 29, 2021
---	---
•	Inside director Yoon-Young Park expired, Kook-Hyun Kang newly appointed,<br>Jong-Ook Park reappointment
---	---
Order	Meeting<br><br><br>Date	Agenda	Results<br><br><br>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

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<br><br><br>Date	Agenda	Results<br><br><br>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<br><br><br>Date	Agenda	Results<br><br><br>of discussion	Outside Director				Inside Director
---	---	---	---	---	---	---	---	---
				Hyun-Myung Pyo	Gang-Cheol Lee	Chan-Hi Park	Tae-Yoon Sung	<br><br><br><br>
				(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

ø	the 39^th^ AGM on March 29, 2021
•	Inside director Yoon-Young Park expired, Kook-Hyun Kang newly appointed,
---	---
Order	Meeting<br><br><br>Date	Agenda	Results<br><br><br>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.

(b) Appointment of new Directors and recommender (as of December 31, 2020)

Title	Name	Tenure	Consecutiveterm<br>(number ofterm)	Appointmentbackground	Recommendation	Acting area as adirector	Transactionswiththecompany,relationship withmajorshareholders
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<br>term (1)	ICT/Management expert	Representative director<br> <br>(w/ the consent of<br>BOD)	Executive committee<br> <br>Corporate governance<br>committee<br> <br>Outside director candidate recommendation committee	None
Inside director	Kook-Hyun Kang	March of 2021 ~ AGM day of 2022	—	ICT/Management expert	Representative director<br> <br>(w/ the consent of<br>BOD)	Executive committee<br> <br>Corporate sustainability<br>management committee	None
Outside director	Dae-You Kim	March of 2018 ~ AGM day of 2024	Consecutive<br>term (1)	Corporate relations expert	Outside director candidate recommendation committee	Chairperson of Audit committee<br> <br>Corporate<br>governance committee<br> <br>Outside director candidate recommendation committee	None

Outside director	Gang-Cheol Lee	March of 2018 ~ AGM day of 2024	Consecutive<br>term (1)	Corporate relations expert	Outside director candidate recommendation committee	Chairperson of Corporate governance committee,<br><br><br>Corporate sustainability management committee<br> <br>Evaluation and<br>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<br> <br>Corporate governance<br>committee<br> <br>Evaluation and compensation committee<br> <br>Related-party<br>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,<br><br><br>Audit committee<br> <br>Corporate sustainability management<br>committee	None
Outside director	Hyun-Myung Pyo	March of 2020 ~<br><br><br>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

Outside director	Chung-Gu Kang	March of 2020 ~<br><br><br>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 ~<br><br><br>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 ~<br><br><br>AGM day of 2023		Accounting·Finance expert	Outside director candidate recommendation committee	Audit committee, Related-party transaction committee Outside director candidate recommendation committee	None

LOGO 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%<br><br><br>(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,<br>Tae-Yoon Sung, Chan-Hi Park whose tenure ended by the AGM of 2022
---
•	Outside Director Candidate Recommendation Committee
---	---
Order	Meeting<br><br><br>Date	Agenda	Results of<br><br><br>discussion	Outside Director						InsideDirector
---	---	---	---	---	---	---	---	---	---	---
				Hee-Yol<br>Yu	Tae-Yoon<br>Sung	Hyun-<br>Myung<br>Pyo	Chung-Gu<br>Kang	Chan-Hi<br>Park	Eun-Jung<br>Yeo	Jong-Ook<br>Park
				(Attendance:<br>100%)	(Attendance:<br>100%)	(Attendance:<br>100%)	(Attendance:<br>100%)	(Attendance:<br>100%)	(Attendance:<br>100%)	(Attendance:<br>100%)
1st	2021.02.25	Final decision on Outside Director candidates	Candidates decided	for	for	for	for	for	for	for

LOGO The 10^th^ Board meeting of 2021 (2021.9.16) : Chairperson and members of Outside Director Candidate Recommendation Committee appointed

Order	Meeting<br><br><br>Date	Agenda	Results of<br><br><br>discussion	Outside Directors					Inside<br><br><br>Directors
				Chung-Gu<br>Kang	Gang-<br>Cheol Lee	Dae-You<br>Kim	Hyun-<br>Myung<br>Pyo	Eun-Jung<br>Yeo	Jong-Ook<br>Park
				(Attendance:<br>100%)	(Attendance:<br><br><br>100%)	(Attendance:<br><br><br>100%)	(Attendance:<br><br><br>100%)	(Attendance:<br><br><br>100%)	(Attendance:<br>100%)
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<br><br><br>of the Management Planning Department	9	Office Director 1 (3.9 years of service)<br> <br>Team<br>leader 2 (1.3 years of service on average)<br> <br>Vice director 2 (2.3 years of service on average)<br><br><br>Manager 3 (4.7 years of service on average)<br> <br>Assistant manager 1<br>(0.3 years of service)	- Provides daily news about the company and telecom policies and report on major issues<br><br><br>- Reports on preliminary check result for meeting items<br> <br>-<br>Provides other information needed for outside directors’ job and supports for their requests.

LOGO Years served are counted up to date of disclosure

(b) Education for outside directors

Date	Education provider	Attended outside director	Reasons forabsence	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<br><br><br>Hyun-Myung Pyo<br> <br>Chung-Gu<br>Kang	for applicants	Financials
2021. 02. 25	KT	All	—	My data business status and strategy<br> <br>KT Group<br>management direction and achievements
2021. 03. 09	KT	Hee-Yol Yu<br><br><br>Dae-You Kim<br> <br>Tae-Yoon Sung<br> <br>Hyun-Myung Pyo<br><br><br>Chung-Gu Kang<br> <br>Chan-Hi Park<br> <br>Eun-Jung Yeo	private schedule<br><br><br>(Alternatively provided education materials	Group Media/Contents business management plan
2021. 04. 13	KT	All	—	Group Real estate business status and strategy<br><br><br>Robot business status and strategy<br> <br>The potential and limitations<br>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<br>Digital Health-care business status and strategy
2021. 08. 10	KT	Hee-Yol Yu<br><br><br>Gang-Cheol Lee<br> <br>Dae-You<br>Kim<br> <br>Hyun-Myung Pyo<br><br><br>Chung-Gu Kang<br> <br>Chan-Hi Park<br> <br>Eun-Jung Yeo	private schedule<br><br><br>(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<br><br><br>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<br><br><br>Dae-You Kim<br> <br>Hyun-Myung<br>Pyo<br> <br>Chung-Gu Kang<br> <br>Chan-Hi Park<br> <br>Tae-Yoon Sung<br><br><br>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 directorJong-Ook Park, Kook-Hyun Kang attended
---	---

2. Audit Committee

(1) Personal Information of Members of the Audit Committee (As of December 31, 2020)

Name	OutsideDirector	Experience	Accounting/ Finance Expert
			Expert	Expertise	Relevant career
Dae-You Kim	Yes	- Economic Policy Top Secretary, Presidential Secretariat (Vice Minister Level)<br><br><br>- Vice Chairman, Wonik Investment Partners<br> <br>- Outside Director, DB<br>Life Insurance Co., Ltd(Present)	—	—	—
Tae-Yoon Sung	Yes	- Professor at School of Economics, Yonsei University<br><br><br>- Dean of Underwood International College, Yonsei University<br> <br>-<br>Director at Korea Money and Finance Association<br> <br>- Editorial Member at Editorial Committee, Korea Economic Association	—	—	—
Chung-Gu Kang	Yes	- Professor at College of Engineering, Korea University<br><br><br>- Member of the National Academy of Engineering of Korea<br> <br>-<br>Honorary President at Korea Institute of Communication and Information Sciences<br> <br>- Chair at Consultative Committee for Radio Policy, Ministry of Science and<br>ICT	—	—	—
Eun-Jung Yeo	Yes	- Profess at College of Business, Chung-Ang University<br><br><br>- Member of Asset Management Committee for Employment Insurance / Industrial Insurance Fund, Ministry of Employment and Labor<br><br><br>- Member of Financial subcommittee, Consumer Policy Committee, Fair Trade Commission, Prime Minister’s Office<br><br><br>- Vice President at Korea Money and Finance Association	Yes	Ph.D. in Finance and accounting	- Qualification : Ph.D. in Economics, University of Michigan<br><br><br>- Work Length : Profess at College of Business, Chung-Ang University (2013-Present)

(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<br>
---	---
•	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<br>
---	---
•	2012-2014 : Editorial Board of Asian Review of Financial Research
---	---
•	2006-2009 : Research Fellow, Korea Institute of Finance
---	---

(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.

OutsideDirector	Tenure*	Consecutive term<br><br><br>(number of term)	Reasons forappointment	Recommender	Roles in the Board	Transaction withthe Company,Relationshipwith the largestshareholder andmajorshareholders
Dae-You Kim	March of 2021 ~ AGM of 2024	Consecutive term<br><br><br>(1)	External Cooperation Expert	Board of Directors	Audit Committee<br> <br>(Chairperson)<br><br><br>Corporate Governance Committee(Member),<br> <br>Outside director<br>candidate recommendation committee	None
Tae-Yoon Sung	March of 2020 ~ AGM of 2022	—	Global affairs/<br><br><br>Economy Expert	Board of Directors	Evaluation and compensation committee (Chairperson)<br><br><br>Audit Committee,<br> <br>Corporate sustainability management<br>committee	None
Chung-Gu Kang	March of 2020 ~ AGM of 2023	—	ICT Expert	Board of Directors	Audit Committee<br> <br>Related-party transaction<br>committee<br> <br>Outside director candidate recommendation committee	None
Eun-Jung Yeo	March of 2020 ~ AGM of 2023	—	Finance/Accounting Expert<br> <br>(Article 37 (2) 2<br>of the Enforcement Decree of the Commercial Act)	Board of Directors	Audit Committee<br> <br>Related-party transaction<br>committee<br>Outside director candidate recommendation committee	None

(3) Major Activities of the Audit Committee

Order	Date	Agenda	Result ofDiscussion	Outside Director
				Dae-You<br>Kim	Tae-Yoon<br>Sung	Chung-Gu<br>Kang	Eun-Jung<br>Yeo
				(Attendance:<br>100%)	(Attendance:<br>100%)	(Attendance:<br>100%)	(Attendance:<br>100%)
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<br>device of the audit committee for 2020	Original proposal<br>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<br>general meeting of shareholders for the 39th term	Original proposal<br>approved	for	for	for	for
		Audit report of the annual general meeting of shareholders for<br>the 39th term	Original proposal<br>approved	for	for	for	for
		Appointment of the Chairman of the Compliance Committee	Appointment of<br>Chairperson	for	for	for	for
After the 39^th^ General Meeting of Shareholders on<br>March 29, 2020
---

Outside Director Dae-You Kim reappointed as Audit Committee member

Order	Date	Agenda	Result of Discussion	Outside Director
				Dae-You<br>Kim	Tae-Yoon<br>Sung	Chung-Gu<br>Kang	Eun-Jung<br>Yeo
				(Attendance:<br>100%)	(Attendance:<br>100%)	(Attendance:<br>100%)	(Attendance:<br>100%)
5th	2021.03.30	Appointment of the chairman of Audit committee	Chairman appointed	for	for	for	for
		Delegation of authority for prior<br>approval of non-audit service of external<br>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<br>performance by external auditors in<br>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

(5) Audit Committee Education status

Date	Educationprovider	Attended audit member	Reasons for absence	Education contents
2021. 04. 22	Audit Committee Forum	Dae-You Kim<br><br><br>Eun-Jung Yeo<br><br><br>Chung-Gu Kang	due to personal schedule<br><br><br>(Substitute for provision of educational materials)	- Covid 19 & ESG<br> <br>- 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<br><br><br>- 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<br><br><br>- 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<br>members
---

(6) Supportive team for Audit Committee

Department	NumberofStaffs	Job Position(years served)	Activity history
Ethics Management Office	47	Offce Head 1 (3 years of service)<br> <br>Director 2<br>(2.6 years of service on average)<br> <br>Team leader 8 (2.7 years of service on average)<br><br><br>Team members 36 (3.7 years of service on average)	• Group/company-wide ethical management promotion and organizational soundness<br>and ethics diagnosis/audit<br> <br>• Company-wide risk management and compliance status diagnosis and<br>inspection<br> <br>• Group/company-wide accounting audit and internal control diagnosis

(7) Matters on Compliance officer

•	Name : Byung-Sam Park
•	Qualification : Passed the 35^th^ Korean judicial<br>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 27^th^ training of the Judicial Research and<br>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<br>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)
---	---

•	Major Activities and results
Items	Date/Period	Contents	Result
---	---	---	---
Compliance education	On occasion	- Conducting compliance training by department by major position<br><br><br>- Online education including anti-graft/foreign anti-corruption laws for all employees<br><br><br>- 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<br>(‘21.3~)<br> <br>- Introduction of third-party risk assessment and compliance due diligence process (‘12.12~)<br><br><br>- Conducting legal review on the work performed by executives and employees and contracts<br><br><br>- Establish a communication channel between compliance officers and employees by building a compliance platform<br><br><br>(Regular access to compliance control related materials, support for voluntary compliance activities by department)<br><br><br>- Establishment & support of group compliance system<br><br><br>(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<br><br><br>- Report the plan and results of compliance activities to the audit committee<br><br><br>- Report to the Board of Directors on the results of the inspection on compliance with the compliance control standards<br><br><br>- Operation of the Compliance Committee (the highest decision-making body related to compliance control) and the Compliance Secretariat	Nothing significant to report

•	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)<br><br><br>Director 4 (1.7 year of service)<br> <br>Senior Manager 6 (4.4 years of<br>service on average)<br> <br>Manager 1 (0.8 years of service on average)<br><br><br>Lawyer 2 (6.1 years of service on average)	- Corporate compliance planning<br> <br>- Compliance<br>trainings for employees<br> <br>- Inspection and evaluation on each compliance area<br><br><br>- Facilitating compliance to be culturally embedded<br> <br>- Provides<br>prior report on main issues<br> <br>- 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<br>privatization process in 2002.
---	---
•	Where a general meeting of shareholders of a company is convened to appoint two or more directors, shareholders<br>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<br>incorporation.
---	---
•	Each shareholder shall have the same number of voting rights per share as directors to be elected, with respect<br>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<br>most votes.
---	---
•	For further information, refer to Commercial Act Article 382-2(Cumulative<br>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<br>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<br>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.
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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<br>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<br>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<br>368-4(4).

4. Equity Investments

[As of December 31, 2021]													(Units: In Share, Won million)
Name of Company or Item	Beginning Balance							Increase (Decrease)					Ending Balance							Financial Facts<br>(Latest fiscal year)
	Numberof Shares		EquityRatio			BookValue		Acquisition(Disposal)			Valuation		Numberof Shares		EquityRatio			BookValue		TotalAssets		NetProfits
				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)
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Name of Company or Item	Beginning Balance							Increase (Decrease)					Ending Balance							Financial Facts<br>(Latest fiscal year)
	Number ofShares		EquityRatio			BookValue		Acquisition (Disposal)			Valuation		Number ofShares		EquityRatio			BookValue		TotalAssets		NetProfits
				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

[As of December 31, 2021]													(Units: In Share, Won million)
Name of Company or Item	Beginning Balance							Increase (Decrease)					Ending Balance							Financial Facts<br>(Latest fiscal year)
	Numberof Shares		EquityRatio			BookValue		Acquisition (Disposal)			Valuation		Numberof Shares		EquityRatio			BookValue		TotalAssets		NetProfits
				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<br>the equity ratio.
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VI. DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES

1. Directors

Changes since the preparation date

Inside and outside directors have been changed through the 31, December 2021 as follows.

Name		Position
Inside Directors ^(1)^
Hyeon-Mo Ku	January 13,<br>1964	Representative Director and Chief Executive Officer	12	2023 AGM
Jong-Ook Park	January 24,<br>1962	President, Head of Corporate Planning Group	7	2022 AGM
Kook-Hyun Kang	September 8,<br>1963	President, Head of Customer Business Group	11	2022 AGM
Outside Directors ^(1)^
Gang-Cheol Lee	May 6,<br>1947	Outside Director, Paju Country Club Co., Ltd. Outside Director Candidate Recommendation Committee	3	2024 AGM
Dae-You Kim	July 21,<br>1951	Outside Director, DB Life Insurance Co., Ltd. Outside Director Candidate Recommendation Committee	3	2024 AGM
Hee-Yol Yu	January 12,<br>1947	Board Chairperson, Korea Carbon Capture & Sequestration R&D Center	2	2022 AGM
Tae-Yoon Sung	February 13,<br>1970	Professor, School of Economics, Yonsei University	2	2022 AGM
Hyun-Myung Pyo	October 21,<br>1958	Outside Director, Hankook Tire & Technology Co., Ltd.	1	2023 AGM
Chung-Gu Kang	December 12,<br>1962	Professor, School of Electrical Engineering, Korea University	1	2023 AGM
Chan-Hi Park	December 2,<br>1964	Professor, School of Business, Chung-Ang University	1	2022 AGM
Eun-Jung Yeo	February 15,<br>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<br> <br>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

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

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 Yearsin ContinuousService		Total<br>Payroll		Average Payrollper Person		Non-affiliatedworkers
	General		Other		Total
Total		21,087		672		21,759		21.7		1,991,370		95		165
•	Number of employees as of December 31, 2021.
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•	Average years in continuous services was calculated based on workers excluding fixed-term workers.<br>
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•	Total Payroll and Average payroll per person are the amount of earned income under the income tax law of regular<br>and unregistered executives.
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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 theGeneral Meeting ofShareholders		Average Amount Paidper 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<br>inside directors following the Severance Pay Regulation for Executives.
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B. Standards for payment of remuneration for directors andauditors

(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<br>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<br>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.
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•	Short-term bonus : Short-term bonuses are paid after the resolution of the board of directors, reflecting the<br>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<br>range of 0-180% of the base salary.
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•	Long-term bonus : It can be paid up to 0-180% of the base salary<br>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)
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•	The long-term performance bonus in 2020 has been changed to be paid within the range of 0~140% of the base<br>salary.
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•	Other income : Payment of medical examination expenses, medical expenses, etc. in accordance with the standards<br>for executive benefits.
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(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.

(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<br>every month as determined by the board of directors.
•	Attendance expenses : Attendance expenses are calculated based on the amount determined by the board of<br>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.
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•	Stock compensation : In accordance with the resolution of the board of directors, stock compensation shall be<br>paid in the following year with a transfer restriction shares of 20 million won per person.
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•	Other income : Payment of medical examination expenses, etc. in accordance with the standards for supporting<br>outside directors
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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<br>Pay Regulation for Executives.
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Name	Type		TotalAmountPaid<br><br><br>(KRW<br>million)	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<br>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<br>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<br>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<br>service (13.3 years) in the base salary (the sum of the base pay and the position pay, 115.8 million won).
	Others		—	—

Name	Type		TotalAmountPaid<br><br><br>(KRW<br>million)	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<br>decided by evaluating the management results comprehensively.<br>The short-<br>term incentives can be 0~180% of the base pay and long-term performance<br>pay is a comprehensive evaluation of total shareholder return, group EBITDA<br>achievement, and group sales achievement can be paid within the range<br>of<br>0~140% of the base pay.<br> <br><br> <br>- In accordance with the resolution of the board of<br>directors, the performance<br>of the previous year was comprehensively evaluated and a performance bonus<br>of KRW 946 million was paid.<br> <br><br><br><br>* KRW 946 million paid as a performance bonus includes the amount<br>calculated by the stock price at the time of the number of stocks paid<br>to<br>individuals as long-term incentives
		Stock option	—	—
		Fringe benefits	20	Including medical expenses, health checkup costs
	Retirement income		—	—
	Others		—	—
Name	Type		Total<br>Amount Paid<br>(KRW<br>million)	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<br>decided by evaluating the management results comprehensively.<br>The short-<br>term incentives can be 0~140% of the base pay and the long-term incentives<br>can be 0~95% of the base pay. - In accordance with the resolution of the<br>board of directors, the performance of the previous year was<br>comprehensively<br>evaluated and a performance bonus of KRW 509 million was paid.<br> <br><br><br><br>* KRW 509 million paid as a performance bonus includes the amount<br>calculated by the stock price at the time of the number of shares paid to<br>an<br>individual as a long-term performance bonus
		Stock option	—	—
		Fringe benefits	22	Including medical expenses, health checkup costs
	Retirement income		—	—
	Others		—	—

Name	Type		TotalAmountPaid<br><br><br>(KRW<br>million)	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<br>evaluating the management results comprehensively. The short-term incentives can be<br>0~140% of the base pay and the long-term incentives can<br>be 0~95% of the base pay. -<br>In accordance with the resolution of the board of directors, the performance of the<br>previous year was comprehensively evaluated and a performance bonus of KRW<br>345 million was paid. * Executives at the time<br>of 2020 * KRW 345 million paid as a<br>performance bonus includes the amount calculated by the stock price at the time of the<br>number of shares paid to an individual as a long-term performance bonus
		Stock<br>option	—	—
		Fringe<br>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.