REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 |
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the fiscal year ended |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Date |
of event requiring this shell company report |
For the transition period from |
KT Corporation |
The | |
(Translation of Registrant’s name into English) |
(Jurisdiction of incorporation or organization) |
Title of each class |
Trading symbol |
Name of each exchange on which registered | ||
one-half of one share of ordinary share |
||||
₩ 5,000 per share* |
* | Not for trading, but only in connection with the registration of the American Depositary Shares. |
Item 16B. | Code of Ethics | 105 | ||||||
Item 16C. | Principal Accountant Fees and Services | 106 | ||||||
Item 16D. | Exemptions from the Listing Standards for Audit Committees | 106 | ||||||
Item 16E. | Purchases of Equity Securities by the Issuer and Affiliated Purchasers | 107 | ||||||
Item 16F. | Change in Registrant’s Certifying Accountant | 107 | ||||||
Item 16G. | Corporate Governance | 107 | ||||||
Item 16H. | Mine Safety Disclosure | 108 | ||||||
Item 16I. | Disclosure regarding Foreign Jurisdictions that Prevent Inspections | 108 | ||||||
Part III | 109 | |||||||
Item 17. | Financial Statements | 109 | ||||||
Item 18. | Financial Statements | 109 | ||||||
Item 19. | Exhibits | 110 |
• | increase in unemployment among our customers who may not be able to meet payment obligations, which in turn may decrease demand for our products and services; |
• | service disruptions, outages and performance problems due to capacity constraints caused by an overwhelming number of people accessing our services simultaneously; |
• | disruptions in supply of mobile handsets or telecommunications equipment from our vendors; |
• | depreciation of the Won against major foreign currencies, which in turn may increase the cost of imported equipment necessary for expansion and enhancement of our telecommunications infrastructure; and |
• | impairments in the fair value of our investments in companies that may be adversely affected by the pandemic. |
• | declines in consumer confidence and a slowdown in consumer spending, including as a result of the ongoing global COVID-19 pandemic; |
• | adverse conditions or developments in the economies of countries and regions that are important export markets for Korea, such as China, the United States, Europe and Japan, or in emerging market economies in Asia or elsewhere, including as a result of the deteriorating economic and trade relations between the United States and China and increased uncertainties resulting from the United Kingdom’s exit from the European Union; |
• | adverse changes or volatility in foreign currency reserve levels, commodity prices (including oil prices), exchange rates (including fluctuation of the U.S. dollar, the Euro or the Japanese Yen exchange rates or revaluation of the Chinese Renminbi), interest rates, inflation rates or stock markets; |
• | the occurrence of severe health epidemics in Korea or other parts of the world, such as the COVID-19 pandemic; |
• | deterioration in economic or diplomatic relations between Korea and its trading partners or allies, including deterioration resulting from territorial or trade disputes or disagreements in foreign policy (such as the ongoing trade disputes with Japan); |
• | increased sovereign default risk in select countries and the resulting adverse effects on the global financial markets; |
• | deterioration in the financial condition or performance of small- and medium-sized enterprises and other companies in Korea due to the Government’s policies to increase minimum wages and limit working hours of employees; |
• | investigations of large Korean business groups and their senior management for possible misconduct; |
• | a continuing rise in the level of household debt and increasing delinquencies and credit defaults by retail and small- and medium-sized enterprise borrowers in Korea; |
• | the economic impact of any pending or future free trade agreements or of any changes to existing free trade agreements; |
• | social and labor unrest; |
• | substantial changes in the market prices of Korean real estate; |
• | a substantial decrease in tax revenues and a substantial increase in the Government’s expenditures for fiscal stimulus measures, unemployment compensation and other economic and social programs, in particular in light of the Government’s ongoing efforts to provide emergency relief payments to households and emergency loans to corporations in need of funding in light of COVID-19, which, together, would likely lead to a national budget deficit as well as an increase in the Government’s debt; |
• | financial problems or lack of progress in the restructuring of Korean business groups, other large troubled companies, their suppliers or the financial sector; |
• | loss of investor confidence arising from corporate accounting irregularities or corporate governance issues concerning certain Korean companies; |
• | increases in social expenditures to support an aging population in Korea or decreases in economic productivity due to the declining population size in Korea; |
• | geopolitical uncertainty and the risk of further attacks by terrorist groups around the world; |
• | political uncertainty or increasing strife among or within political parties in Korea; |
• | hostilities or political or social tensions involving oil producing countries in the Middle East (including a potential escalation of hostilities between the United States and Iran) and Northern Africa and any material disruption in the global supply of oil or sudden increase in the price of oil; |
• | hostilities or political or social tensions involving Russia (including the invasion of Ukraine by Russia and ensuing actions that the United States and other countries may take) and any resulting adverse effects on the global supply of oil or other natural resources or the global financial markets; |
• | natural or man-made disasters that have a significant adverse economic or other impact on Korea or its major trading partners; and |
• | an increase in the level of tensions or an outbreak of hostilities between North Korea and Korea or the United States. |
• | North Korea renounced its obligations under the Nuclear Non-Proliferation Treaty in January 2003 and has conducted several rounds of nuclear tests since October 2006, including claimed detonations of hydrogen bombs, and warheads that can be mounted on ballistic missiles. Over the years, North Korea has also conducted a series of ballistic missile tests, including missiles launched from submarines and intercontinental ballistic missiles that it claims can reach the United States mainland. In response, the Government has repeatedly condemned the provocations and flagrant violations of relevant United Nations Security Council resolutions. Internationally, the United Nations Security Council has passed a series of resolutions condemning North Korea’s actions and significantly expanding the scope of sanctions applicable to North Korea, most recently in December 2017 in response to North Korea’s intercontinental ballistic missile test in November 2017. Over the years, the United States and the European Union have also expanded their sanctions applicable to North Korea. |
• | In March 2010, a Korean naval vessel was destroyed by an underwater explosion, killing many of the crewmen on board. The Government formally accused North Korea of causing the sinking, while North Korea denied responsibility. Moreover, in November 2010, North Korea fired more than one hundred artillery shells that hit Korea’s Yeonpyeong Island near the Northern Limit Line, which acts as the de facto maritime boundary between Korea and North Korea on the west coast of the Korean peninsula, causing casualties and significant property damage. The Government condemned North Korea for the attack and vowed stern retaliation should there be further provocation. |
• | a registration statement filed by us under the Securities Act of 1933, as amended, is in effect with respect to those shares; or |
• | the offering and sale of those shares is exempt from or is not subject to the registration requirements of the Securities Act. |
• | mobile voice and data telecommunications services based on 5G, 4G LTE and 3G W-CDMA technology; |
• | fixed-line services, which include: |
Ø |
(i) fixed-line telephone services, including local, domestic long-distance and international long-distance services, (ii) Voice over Internet Protocol (“VoIP”) telephone services (i.e., provision of communication services over the Internet, and not over the fixed-line PSTN) and (iii) interconnection services to other telecommunications companies; |
Ø |
broadband Internet access services; and |
Ø |
data communication services, including fixed-line and satellite leased line services and dedicated broadband Internet connection service to corporate and other institutional customers; |
• | media and content services, including IPTV, satellite TV, digital music services, e-commerce services, online advertising consulting services and digital comics and novels services; |
• | financial services, including credit card processing and other financial services offered primarily through BC Card; |
• | other business activities, including information technology and network services and rental of real estate by KT Estate Inc. (“KT Estate”); and |
• | sale of goods, primarily sale of handsets related to our mobile services and miscellaneous telecommunications equipment, as well as sale of residential units and commercial real estate developed by KT Estate. |
• | in mobile services, we achieved a market share of 31.3% with approximately 22.8 million subscribers as of December 31, 2021; |
• | in fixed-line and VoIP telephone services, we had approximately 13.0 million subscribers, consisting of 9.9 million PSTN subscribers and 3.2 million VoIP subscribers as of December 31, 2021. As of such date, our market share of the fixed-line local telephone and VoIP services was 56.3%; and |
• | we are Korea’s largest broadband Internet access provider with approximately 9.5 million subscribers |
For the Year Ended December 31, |
||||||||||||||||||||||||
2019 |
2020 |
2021 |
||||||||||||||||||||||
Products and services |
Billions of Won |
% |
Billions of Won |
% |
Billions of Won |
% |
||||||||||||||||||
Mobile services |
₩ |
6,795 | 27.3 | % | ₩ |
6,805 | 27.8 | % | ₩ |
6,936 | 27.5 | % | ||||||||||||
Fixed-line services: |
||||||||||||||||||||||||
Fixed-line and VoIP telephone services |
1,579 | 6.3 | 1,464 | 6.0 | 1,465 | 5.8 | ||||||||||||||||||
Broadband Internet access services |
2,177 | 8.7 | 2,256 | 9.2 | 2,344 | 9.3 | ||||||||||||||||||
Data communication services |
1,111 | 4.5 | 1,107 | 4.5 | 1,152 | 4.6 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Sub-total |
4,867 | 19.5 | 4,827 | 19.7 | 4,960 | 19.7 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Media and content services |
2,516 | 10.1 | 2,638 | 10.8 | 2,801 | 11.1 | ||||||||||||||||||
Financial services |
3,642 | 14.6 | 3,494 | 14.3 | 3,662 | 14.5 | ||||||||||||||||||
Others |
2,885 | 11.6 | 3,084 | 12.6 | 3,313 | 13.1 | ||||||||||||||||||
Sale of goods (1) |
4,194 | 16.8 | 3,593 | 14.7 | 3,533 | 14.0 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total operating revenue |
₩ |
24,899 | 100.0 | % | ₩ |
24,441 | 100.0 | % | ₩ |
25,206 | 100.0 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(1) | Primarily related to sale of handsets for our mobile service and miscellaneous telecommunications equipment, as well as sale of residential units and commercial real estate developed by KT Estate. |
As of or for the Year Ended December 31, |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
Average monthly revenue per subscriber (1) |
₩ |
31,625 | ₩ |
31,683 | ₩ |
32,294 | ||||||
Number of mobile subscribers (in thousands) |
21,922 | 22,305 | 22,799 | |||||||||
LTE subscribers |
17,153 | 16,174 | 14,637 | |||||||||
W-CDMA subscribers |
3,350 | 2,512 | 1,784 | |||||||||
5G subscribers |
1,419 | 3,619 | 6,378 |
(1) | The average monthly revenue per subscriber is computed by dividing total monthly fees, usage charges, interconnection fees and value-added service fees for the period by the weighted average number of subscribers (other than MVNO subscribers) and dividing the quotient by the number of months in the period. |
As of or for the Year Ended December 31, |
||||||||||||||||||||
2017 |
2018 |
2019 |
2020 |
2021 |
||||||||||||||||
Total Korean population (thousands) (1) |
51,799 | 51,826 | 51,850 | 51,829 | 51,639 | |||||||||||||||
PSTN and VoIP lines in service (thousands) |
15,610 | 14,992 | 14,185 | 13,582 | 13,096 | |||||||||||||||
PSTN lines in service |
12,201 | 11,637 | 11,052 | 10,449 | 9,905 | |||||||||||||||
Local lines in service |
11,222 | 10,654 | 10,076 | 9,475 | 8,937 | |||||||||||||||
Group lines in service |
979 | 983 | 976 | 973 | 968 | |||||||||||||||
VoIP lines in service |
3,409 | 3,355 | 3,133 | 3,133 | 3,191 | |||||||||||||||
Fiber optic cable (kilometers) |
764,802 | 784,088 | 847,497 | 867,051 | 896,076 | |||||||||||||||
Domestic long-distance call minutes (millions) (2) |
1,126 | 892 | 744 | 620 | 500 | |||||||||||||||
Local call pulses (millions) (2) |
1,285 | 974 | 804 | 638 | 554 |
(1) | Based on the number of registered residents as published by the Ministry of the Interior and Safety of Korea. |
(2) | Excluding calls placed from public telephones. |
Year Ended December 31, |
||||||||||||||||||||
2017 |
2018 |
2019 |
2020 |
2021 |
||||||||||||||||
(In millions of billed minutes) |
||||||||||||||||||||
Incoming international long-distance calls (1) |
286.4 | 221.1 | 189.6 | 50.8 | 242.4 | |||||||||||||||
Outgoing international long-distance calls |
125.9 | 101.1 | 78.8 | 59.5 | 44.4 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
412.3 | 322.2 | 268.4 | 110.3 | 286.8 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
(1) | Starting in 2021, includes incoming traffic of application-to-person correspondence. |
Plan |
Monthly Rate |
Voice Calls |
Video Calls |
Data Transmission |
Additional Features | |||||||||||
5G Super Plan Premium Choice |
₩ |
130,000 | Unlimited | 300 min. | Unlimited | • Unlimited data roaming at 3 Mbps • Handset insurance using reward points • No service fee for additional smart device • Free contents (subscribers can choose two services among Movie / Music / Netflix / Disney) | ||||||||||
5G Super Plan Special Choice |
₩ |
110,000 | Unlimited | 300 min. | Unlimited | • Unlimited data roaming at 100 kbps • Handset insurance using reward points • No service fee for additional smart device • Free contents (subscribers can choose two services among Movie / Music / Netflix / Disney) | ||||||||||
5G Super Plan Special |
₩ |
100,000 | Unlimited | 300 min. | Unlimited | • Unlimited data roaming at 100 kbps • Handset insurance using reward points • No service fee for additional smart device | ||||||||||
5G Super Plan Basic Choice |
₩ |
90,000 | Unlimited | 300 min. | Unlimited | • Unlimited data roaming at 100 kbps • Free contents (subscribers can choose two services among Movie / Music / Netflix / Disney) | ||||||||||
5G Super Plan Basic |
₩ |
80,000 | Unlimited | 300 min. | Unlimited | • Unlimited data roaming at 100 kbps | ||||||||||
5G Simple |
₩ |
69,000 |
Unlimited |
300 min. |
Unlimited, but decelerate to 5 Mbps after 110 GB |
|||||||||||
5G Slim |
₩ |
55,000 |
Unlimited |
300 min. |
Unlimited, but decelerate to 1 Mbps after 8 GB |
|||||||||||
5G Save |
₩ 45,000 |
Unlimited |
300 min. |
Unlimited, but decelerate to 400 kbps after 5 GB |
Plan |
Monthly Rate |
Voice Calls |
Video Calls |
Data Transmission |
Additional Features | |||||
Data On Premium |
₩ 89,000 |
Unlimited | 300 min. | Unlimited | • Handset insurance using reward points • No service fee for additional smart device • Media package offering music, video, webtoon and movie content. | |||||
Data On Video |
₩ 69,000 |
Unlimited | 300 min. | Unlimited, but decelerate to 5 Mbps after 100 GB | • Mobile TV package offering live broadcast and VOD contents of up to 2 GB per day | |||||
Data On Talk |
₩ 49,000 |
Unlimited | 300 min. | Unlimited, but decelerate to 1 Mbps after 3 GB | • Mobile TV package offering live broadcast and VOD contents of up to 2 GB per day | |||||
LTE Basic |
₩ 33,000 |
Unlimited |
50 min. |
1.4 GB with an option to transfer data from and into the next month’s usage |
Effective Starting |
||||||||||||
January 1, 2019 |
January 1, 2020 |
January 1, 2021 |
||||||||||
KT |
₩ |
11.6 | ₩ |
10.6 | ₩ |
10.3 | ||||||
SK Telecom |
11.6 | 10.6 | 10.3 | |||||||||
LG U+ |
11.6 | 10.6 | 10.3 |
Effective Starting |
||||||||||||
January 1, 2019 |
January 1, 2020 |
January 1, 2021 |
||||||||||
SK Telecom |
₩ |
11.6 | ₩ |
10.6 | ₩ |
10.3 | ||||||
LG U+ |
11.6 | 10.6 | 10.3 |
Effective Starting |
||||||||||||
January 1, 2019 |
January 1, 2020 |
January 1, 2021 |
||||||||||
Local access (1) |
₩ |
7.8 | ₩ |
7.6 | ₩ |
7.0 | ||||||
Single toll access (2) |
9.2 | 8.6 | 8.0 | |||||||||
Double toll access (3) |
12.2 | 11.2 | 10.9 |
(1) | Interconnection between local switching center and local access line. |
(2) | Interconnection involving access to single long-distance switching center. |
(3) | Interconnection involving access to two long-distance switching centers. |
Plan |
Monthly Rate |
Rate with 3 Year Term |
Maximum Speed |
Max Speed Daily Limit (1) |
Additional Features | |||||||||
Internet Super Premium |
₩ |
110,000 | ₩ |
88,000 | 10 Gbps | 1000 GB | 2 WiFi routers included. | |||||||
Internet Premium Plus |
₩ |
82,500 | ₩ |
60,500 | 5 Gbps | 500 GB | 2 WiFi routers included. | |||||||
Internet Premium |
₩ |
60,500 | ₩ |
44,000 | 2.5 Gbps | 250 GB | Discount on 1 WiFi router rental. | |||||||
Internet Essence |
₩ |
55,000 | ₩ |
38,500 | 1.0 Gbps | 150 GB | ||||||||
Internet Slim |
₩ |
39,600 | ₩ |
22,000 | 100 Mbps | None |
(1) | Data transmission speed is reduced to 100 Mbps if data usage exceeds the specified maximum speed daily limit. |
Plan |
Monthly Rate |
Rate with 3 Year Term |
Channels (UHD) |
Additional Features | ||||||
olleh tv live |
||||||||||
tv Movie Plus |
₩ 55,000 |
₩ 44,000 |
266 | (6) | • Prime movie package that provides access to more than 28,000 video-on-demand • Catch-on & Plus channel dedicated to latest popular movies and dramas. | |||||
tv NETFLIX UHD |
₩ 39,800 |
₩ 27,500 |
263 | (6) | • tv Essence plus premium service of NETFLIX. | |||||
tv NETFLIX HD |
₩ 37,300 |
₩ 25,500 |
263 | (6) | • tv Essence plus standard service of NETFLIX. | |||||
tv Essence |
₩ 25,350 |
₩ 16,500 |
263 |
(6) |
||||||
tv Slim |
₩ 16,500 |
₩ 13,200 |
219 | (3) | ||||||
olleh tv skylife |
||||||||||
tv Entertainment |
₩ 31,020 |
₩ 24,816 |
226 | (5) | • Monthly coupon of ₩ 10,000 for video-on-demand. | |||||
tv Slim |
₩ 16,500 |
₩ 13,200 |
216 | (5) |
Market Share (%) (1) |
||||||||||||
KT Corporation |
SK Telecom |
LG U+ |
||||||||||
December 31, 2019 |
31.8 | 46.0 | 22.1 | |||||||||
December 31, 2020 |
31.6 | 44.8 | 23.6 | |||||||||
December 31, 2021 |
31.3 | 44.0 | 24.7 |
(1) | Includes subscribers of MVNOs that lease mobile networks of the respective mobile service provider. |
Market Share (%) |
||||||||||||
KT Corporation |
SK Broadband |
LG U+ |
||||||||||
December 31, 2019 |
64.9 | 14.6 | 12.7 | |||||||||
December 31, 2020 |
64.6 | 14.5 | 12.6 | |||||||||
December 31, 2021 |
64.1 | 14.9 | 12.7 |
Market Share (%) |
||||||||||||||||
KT Corporation |
SK Broadband |
LG U+ |
Others |
|||||||||||||
December 31, 2019 |
40.9 | 25.6 | 19.6 | 13.9 | ||||||||||||
December 31, 2020 |
41.1 | 29.0 | 20.3 | 9.6 | ||||||||||||
December 31, 2021 |
41.2 | 28.7 | 20.7 | 9.4 |
Market Share (%) |
||||||||||||
KT Corporation (1) |
SK Broadband |
LG U+ |
||||||||||
December 31, 2019 |
31.6 | 15.0 | 12.9 | |||||||||
December 31, 2020 |
32.2 | 16.1 | 14.1 | |||||||||
December 31, 2021 |
32.7 | 17.1 | 14.9 |
(1) | Including market share of KT Skylife. |
• | modify its licenses; |
• | discontinue, suspend or spin off all or a part of the business for which it is licensed; |
• | transfer or acquire all or a part of the business of another network service provider; or |
• | enter into a merger with another network service provider. |
• | drafting and implementing plans for developing telecommunications technology; |
• | fostering and providing guidance to institutions and entities that conduct research relating to telecommunications; and |
• | recommending to network service providers that they invest in research and development or that they contribute to telecommunications research institutes in Korea. |
• | cell sites, which are physical locations equipped with radio units of base transceiver stations and other equipment used to communicate through radio channels with subscribers’ mobile telephone handsets within the range of a cell; |
• | centralized centers, which are physical locations with baseband units of base transceiver stations; |
• | core networks, which connect to and control the base transceiver stations and provide the gateway to other networks and services; and |
• | transmission lines, which connect the mobile switching centers, base station controllers, base transceiver stations and the public switched telephone network. |
• | the ICT segment, which consists of KT Corporation on a standalone basis that is primarily engaged in providing various telecommunications and platform services to individual, household and corporate customers as well as selling handsets; |
• | the finance segment, which engages in providing various financial services such as credit card services and value-added network and payment gateway services; |
• | the satellite TV segment, which engages in satellite TV services; and |
• | the others segment, which includes (i) information technology and network services, (ii) contents and commerce services, (iii) security services, (iv) satellite service, (v) global business services that provide global network services to multinational or domestic corporate customers and telecommunications companies and (vi) real property development and leasing services and other services provided by our subsidiaries. |
• | acquisition of new bandwidth licenses and usage fees; |
• | researching and implementing technology upgrades and additional telecommunications services such as 5G technologies; |
• | changes in the rate structure for our telecommunications services; |
• | acquisitions and disposals of interests in subsidiaries and joint ventures; and |
• | marketing activities. |
Spectrum |
Bandwidth |
License Acquisition Date |
Total Payable Amount (in billions of Won) |
Initial Payment Amount (in billions of Won) |
Initial Payment Year |
Annual Usage Fee (in billions of Won) |
Annual Usage Fee Payment Term | |||||||||||||||
900 MHz |
20 MHz | July 1, 2021 | ₩ |
141 | ₩ |
35 | 2021 | ₩ |
21 | 2021 to 2026 | ||||||||||||
1.8 GHz |
35 MHz | July 1, 2021 | ₩ |
548 | ₩ |
137 | 2021 | ₩ |
82 | 2021 to 2026 | ||||||||||||
1.8 GHz |
20 MHz | August 4, 2016 | ₩ |
470 | ₩ |
294 | 2016 | ₩ |
35 | 2016 to 2026 | ||||||||||||
2.1 GHz |
40 MHz | December 6, 2021 | ₩ |
412 | ₩ |
103 | 2021 | ₩ |
62 | 2021 to 2026 | ||||||||||||
3.5 GHz |
100 MHz | December 1, 2018 | ₩ |
968 | ₩ |
460 | 2018 | ₩ |
73 | 2018 to 2028 | ||||||||||||
28 GHz (1) |
800 MHz | December 1, 2018 | ₩ |
208 | ₩ |
145 | 2018 | ₩ |
31 | 2018 to 2023 |
(1) | In 2020, we recognized an impairment loss of ₩ 191 billion in relation to the 28 GHz spectrum 800 MHz bandwidth license, as the carrying amount of such license exceeded the recoverable amount. |
For the Year Ended December 31, |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
(In millions of Won) |
||||||||||||
Operating profit under IFRS as issued by the IASB |
₩ |
1,026,970 | ₩ |
1,022,333 | ₩ |
1,699,397 | ||||||
Effect of changes in operating profit presentation |
172,253 | 218,323 | (27,573 | ) | ||||||||
Revenue recognition of development, sale of real estate, etc. |
(39,657 | ) | (56,549 | ) | — | |||||||
|
|
|
|
|
|
|||||||
Operating profit under K-IFRS |
₩ |
1,159,566 | ₩ |
1,184,107 | ₩ |
1,671,824 | ||||||
|
|
|
|
|
|
For the Year Ended December 31, |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
(In millions of Won) |
||||||||||||
Net income under IFRS as issued by the IASB |
₩ |
695,868 | ₩ |
746,256 | ₩ |
1,459,395 | ||||||
Profit before income tax |
||||||||||||
Revenue recognition of development, sale of real estate, etc. |
(39,657 | ) | (56,549 | ) | — | |||||||
Income tax |
9,731 | 13,685 | — | |||||||||
|
|
|
|
|
|
|||||||
Profit for the year under K-IFRS |
₩ |
665,942 | ₩ |
703,392 | ₩ |
1,459,395 | ||||||
|
|
|
|
|
|
• | fees related to our mobile services, including monthly fees, usage charges for outgoing calls, usage charges for wireless data transmission, contents download fees, mobile-to-mobile |
• | fees from our fixed-line services, including: |
Ø |
fees from our fixed-line and VoIP telephone services, which include: |
Ø |
monthly basic charges, which are one-time or monthly fixed charges primarily consisting of (i) non-refundable activation fees; and (ii) monthly fixed charges from local telephone services (or monthly fixed charges for discount plans); |
Ø |
monthly usage charges, which are usage fees based on the amount of services used, primarily consisting of (i) monthly usage charges for local telephone and domestic long distance services; (ii) international long-distance service revenue, (primarily (a) amounts we bill to our customers for outgoing calls made to foreign countries, (b) amounts we bill to foreign telecommunications carriers for connection to the domestic telephone network in respect of incoming calls at the applicable settlement rate, and (c) other revenue, including revenue from international leased lines); (iii) land-to-mobile land-to-land |
Ø |
other revenue from (i) value-added services, local telephone directory assistance, call waiting and caller identification services; and (ii) local, domestic long-distance and international calls placed from public telephones; and |
Ø |
broadband Internet access service revenue, primarily consisting of installation fees and basic monthly charges; and |
Ø |
data communication services, primarily consisting of installation fees and basic monthly charges for our fixed-line and satellite leased line services and Kornet Internet connection service; |
• | revenue from media and content services, primarily consisting of installation fees and basic monthly charges of IPTV and satellite TV services, as well as revenue from digital music services, e-commerce services, online advertising consulting services and digital comics and novels services; |
• | financial service revenue, primarily consisting of fees from credit card services provided by BC Card, our consolidated subsidiary in which we held a 69.5% interest as of December 31, 2021; |
• | revenue from our miscellaneous business activities categorized as “others,” including information technology and network services and rental of real estate; and |
• | revenue from sale of goods, primarily handsets related to our mobile services and miscellaneous telecommunications equipment, as well as sale of residential units and commercial real estate developed by KT Estate. |
• | purchase of inventories, primarily consisting of (i) inventories purchased for our sale of mobile handsets and (ii) development costs of KT Estate for real estate units to be sold, and changes of inventories, which reflects increases or decreases of inventories of handsets, phones and for-sale real estate units during the applicable period; |
• | salaries and wages, including post-employment benefits, termination benefits (including severance benefits for voluntary and special early retirements) and share-based payments; |
• | card service costs, primarily consisting of costs in connection with credit and cash card services provided by BC Card, including fees paid to member credit card companies in our network for marketing expenses; |
• | depreciation expenses incurred primarily in connection with our telecommunications network facilities; |
• | sales commissions, primarily consisting of sales commissions to third-party dealers related to procurement of mobile subscribers and mobile handset sales; |
• | service cost, primarily consisting of payments to IPTV and satellite TV content providers; |
• | commissions, primarily consisting of commission-based payments for certain third-party outsourcing services, including commissions to the outsourced call center staff; |
• | amortization expenses incurred primarily in connection with our intangible assets; and |
• | interconnection charges, which are interconnection payments to telecommunication service providers for calls from landline users and our mobile subscribers to our competitors’ subscribers. |
For the Year Ended December 31, |
Changes |
|||||||||||||||
2020 vs. 2021 |
||||||||||||||||
2020 |
2021 |
Amount |
% |
|||||||||||||
(In billions of Won) |
||||||||||||||||
Operating revenue |
₩ |
24,441 | ₩ |
25,206 | ₩ |
765 | 3.1 | % | ||||||||
Operating expenses |
23,418 | 23,506 | 88 | 0.4 | ||||||||||||
|
|
|
|
|
|
|||||||||||
Operating profit |
1,022 | 1,699 | 677 | 66.2 | ||||||||||||
Finance income |
499 | 726 | 228 | 45.7 | ||||||||||||
Finance costs |
507 | 563 | 56 | 11.0 | ||||||||||||
Share of net profits of associates and joint ventures |
18 | 116 | 98 | 543.3 | ||||||||||||
|
|
|
|
|
|
|||||||||||
Profit before income tax |
1,032 | 1,978 | 947 | 91.8 | ||||||||||||
Income tax expense |
285 | 519 | 234 | 81.9 | ||||||||||||
|
|
|
|
|
|
|||||||||||
Profit for the year |
₩ |
746 | ₩ |
1,459 | ₩ |
713 | 95.6 | % | ||||||||
|
|
|
|
|
|
For the Year Ended December 31, |
Changes |
|||||||||||||||
2020 vs. 2021 |
||||||||||||||||
Products and services |
2020 |
2021 |
Amount |
% |
||||||||||||
(In billions of Won) |
||||||||||||||||
Mobile services |
₩ |
6,805 | ₩ |
6,936 | ₩ |
131 | 1.9 | % | ||||||||
Fixed-line services: |
||||||||||||||||
Fixed-line and VoIP telephone services |
1,464 | 1,465 | 2 | 0.1 | ||||||||||||
Broadband Internet access services |
2,256 | 2,344 | 87 | 3.9 | ||||||||||||
Data communication services |
1,107 | 1,152 | 44 | 4.0 | ||||||||||||
|
|
|
|
|
|
|||||||||||
Sub-total |
4,827 | 4,960 | 133 | 2.8 | ||||||||||||
|
|
|
|
|
|
|||||||||||
Media and content services |
2,638 | 2,801 | 163 | 6.2 | ||||||||||||
Financial services |
3,494 | 3,662 | 168 | 4.8 | ||||||||||||
Others |
3,084 | 3,313 | 230 | 7.4 | ||||||||||||
Sale of goods (1) |
3,593 | 3,533 | (60 | ) | (1.7 | ) | ||||||||||
|
|
|
|
|
|
|||||||||||
Total operating revenue |
₩ |
24,441 | ₩ |
25,206 | ₩ |
765 | 3.1 | % | ||||||||
|
|
|
|
|
|
(1) | Primarily related to sale of handsets for our mobile service and miscellaneous telecommunications equipment, as well as sale of residential units and commercial real estate developed by KT Estate. |
For the Year Ended December 31, |
Changes |
|||||||||||||||
2020 vs. 2021 |
||||||||||||||||
2020 |
2021 |
Amount |
% |
|||||||||||||
(In billions of Won) |
||||||||||||||||
Salaries and wages |
₩ |
4,124 | ₩ |
4,216 | ₩ |
92 | 2.2 | % | ||||||||
Depreciation |
2,605 | 2,606 | 0 | 0.0 | ||||||||||||
Depreciation of right-of-use |
404 | 399 | (5 | ) | (1.4 | ) | ||||||||||
Amortization of intangible assets |
625 | 603 | (22 | ) | (3.5 | ) | ||||||||||
Commissions |
965 | 1,126 | 160 | 16.6 | ||||||||||||
Interconnection charges |
500 | 508 | 7 | 1.5 | ||||||||||||
International interconnection fee |
173 | 192 | 19 | 11.3 | ||||||||||||
Purchase of inventories |
3,682 | 3,754 | 72 | 2.0 | ||||||||||||
Changes of inventories |
257 | 20 | (237 | ) | (92.0 | ) | ||||||||||
Sales commissions |
2,337 | 2,343 | 6 | 0.3 | ||||||||||||
Service costs |
2,103 | 2,296 | 193 | 9.2 | ||||||||||||
Utilities |
361 | 364 | 4 | 1.0 | ||||||||||||
Taxes and dues |
283 | 269 | (15 | ) | (5.1 | ) | ||||||||||
Rental expenses |
136 | 123 | (13 | ) | (9.6 | ) | ||||||||||
Insurance premium |
71 | 67 | (4 | ) | (6.1 | ) | ||||||||||
Installation fees |
132 | 154 | 22 | 17.0 | ||||||||||||
Advertising expenses |
132 | 171 | 39 | 29.4 | ||||||||||||
Research and development expenses |
157 | 169 | 12 | 7.7 | ||||||||||||
Card service costs |
2,942 | 3,114 | 172 | 5.9 | ||||||||||||
Impairment loss on property and equipment |
80 | 2 | (78 | ) | (97.3 | ) | ||||||||||
Impairment loss on intangible assets |
212 | 4 | (208 | ) | (98.2 | ) | ||||||||||
Others |
1,137 | 1,006 | (132 | ) | (11.6 | ) | ||||||||||
|
|
|
|
|
|
|||||||||||
Total operating expenses |
₩ |
23,418 | ₩ |
23,506 | ₩ |
88 | 0.4 | % | ||||||||
|
|
|
|
|
|
• | Service costs increased by 9.2%, or ₩ 193 billion, from ₩ 2,103 billion in 2020 to ₩ 2,296 billion in 2021 primarily due to increases in costs relating to procurement of contents and enhancement of B2B businesses, in each case for the expansion of our digital transformation activities. |
• | Card service costs increased by 5.9%, or ₩ 172 billion, from ₩ 2,942 billion in 2020 to ₩ 3,114 billion in 2021 primarily due to an increase in the card service costs of BC Card as a result of an increase in the usage of credit cards. |
• | Commissions increased by 16.6%, or ₩ 160 billion, from ₩ 965 billion in 2020 to ₩ 1,126 billion in 2021 primarily due to an increase in commissions that we paid to call centers. |
• | Our changes of inventories decreased by 92.0%, or ₩ 237 billion, from ₩ 257 billion in 2020 to ₩ 20 billion in 2021 primarily due to more efficient handling of slow-moving inventories. |
• | Impairment loss on intangible assets decreased by 98.2%, or ₩ 208 billion, from ₩ 212 billion in 2020 to ₩ 4 billion in 2021 primarily due to an impairment loss of ₩ 193 billion on frequency usage rights in 2020 compared to no such impairment in 2021. |
For the Year Ended December 31, |
Changes |
|||||||||||||||
2020 vs. 2021 |
||||||||||||||||
2020 |
2021 |
Amount |
% |
|||||||||||||
(In billions of Won) |
||||||||||||||||
Interest income |
₩ |
271 | ₩ |
273 | ₩ |
3 | 1.1 | % | ||||||||
Gain on foreign currency transactions |
17 | 20 | 2 | 14.2 | ||||||||||||
Gain on foreign currency translation |
164 | 33 | (132 | ) | (80.1 | ) | ||||||||||
Gain on settlement of derivatives |
9 | 2 | (7 | ) | (76.4 | ) | ||||||||||
Gain on valuation of derivatives |
0 | 255 | 255 | N.M. | ||||||||||||
Gain on valuation of financial instruments |
34 | 91 | 57 | 167.7 | ||||||||||||
Others |
3 | 52 | 49 | 1,784.9 | ||||||||||||
|
|
|
|
|
|
|||||||||||
Total finance income |
₩ |
499 | ₩ |
727 | ₩ |
228 | 45.7 | |||||||||
|
|
|
|
|
|
|||||||||||
Interest expenses |
₩ |
264 | ₩ |
263 | ₩ |
(0 | ) | (0.1 | )% | |||||||
Loss on foreign currency transactions |
28 | 13 | (14 | ) | (52.9 | ) | ||||||||||
Loss on foreign currency translation |
26 | 214 | 187 | 711.3 | ||||||||||||
Loss on settlement of derivatives |
1 | 6 | 5 | 347.2 | ||||||||||||
Loss on valuation of derivatives |
164 | 16 | (148 | ) | (90.3 | ) | ||||||||||
Loss on disposal of trade receivables |
8 | 22 | 15 | 178.6 | ||||||||||||
Loss on valuation of financial instruments |
16 | 26 | 10 | 66.1 | ||||||||||||
Others |
1 | 2 | 2 | 218.6 | ||||||||||||
|
|
|
|
|
|
|||||||||||
Total finance costs |
₩ |
507 | ₩ |
563 | ₩ |
56 | 11.0 | |||||||||
|
|
|
|
|
|
N.M. |
means not meaningful. |
For the Year Ended December 31, |
Changes |
|||||||||||||||
2019 vs. 2020 |
||||||||||||||||
2019 |
2020 |
Amount |
% |
|||||||||||||
(In billions of Won) |
||||||||||||||||
Operating revenue |
₩ |
24,899 | ₩ |
24,441 | ₩ |
(459 | ) | (1.8 | )% | |||||||
Operating expenses |
23,872 | 23,418 | (454 | ) | (1.9 | ) | ||||||||||
|
|
|
|
|
|
|||||||||||
Operating profit |
1,027 | 1,022 | (5 | ) | (0.5 | ) | ||||||||||
Finance income |
424 | 499 | 74 | 17.5 | ||||||||||||
Finance costs |
432 | 507 | 75 | 17.4 | ||||||||||||
Share of net profits (losses) of associates and joint ventures |
(3 | ) | 18 | 21 | N.A. | |||||||||||
|
|
|
|
|
|
|||||||||||
Profit before income tax |
1,016 | 1,032 | 16 | 1.5 | ||||||||||||
Income tax expense |
320 | 285 | (35 | ) | (10.8 | ) | ||||||||||
|
|
|
|
|
|
|||||||||||
Profit for the year |
₩ |
696 | ₩ |
746 | ₩ |
50 | 7.2 | % | ||||||||
|
|
|
|
|
|
For the Year Ended December 31, |
Changes |
|||||||||||||||
2019 vs. 2020 |
||||||||||||||||
Products and services |
2019 |
2020 |
Amount |
% |
||||||||||||
(In billions of Won) |
||||||||||||||||
Mobile services |
₩ |
6,795 | ₩ |
6,805 | ₩ |
10 | 0.1 | % | ||||||||
Fixed-line services: |
||||||||||||||||
Fixed-line and VoIP telephone services |
1,579 | 1,464 | (115 | ) | (7.3 | ) | ||||||||||
Broadband Internet access services |
2,177 | 2,256 | 79 | 3.6 | ||||||||||||
Data communication services |
1,111 | 1,107 | (3 | ) | (0.3 | ) | ||||||||||
|
|
|
|
|
|
|||||||||||
Sub-total |
4,867 | 4,827 | (40 | ) | (0.8 | ) | ||||||||||
|
|
|
|
|
|
|||||||||||
Media and content services |
2,516 | 2,638 | 121 | 4.8 | ||||||||||||
Financial services |
3,642 | 3,494 | (148 | ) | (4.1 | ) | ||||||||||
Others |
2,885 | 3,084 | 198 | 6.9 | ||||||||||||
Sale of goods (1) |
4,194 | 3,593 | (601 | ) | (14.3 | ) | ||||||||||
|
|
|
|
|
|
|||||||||||
Total operating revenue |
₩ |
24,899 | ₩ |
24,441 | ₩ |
(459 | ) | (1.8 | )% | |||||||
|
|
|
|
|
|
(1) | Primarily related to sale of handsets for our mobile service and miscellaneous telecommunications equipment, as well as sale of residential units and commercial real estate developed by KT Estate. |
For the Year Ended December 31, |
Changes |
|||||||||||||||
2019 vs. 2020 |
||||||||||||||||
2019 |
2020 |
Amount |
% |
|||||||||||||
(In billions of Won) |
||||||||||||||||
Salaries and wages |
₩ |
3,974 | ₩ |
4,124 | ₩ |
149 | 3.8 | % | ||||||||
Depreciation |
2,530 | 2,605 | 75 | 3.0 | ||||||||||||
Depreciation of right-of-use |
443 | 404 | (38 | ) | (8.7 | ) | ||||||||||
Amortization of intangible assets |
657 | 625 | (32 | ) | (4.8 | ) | ||||||||||
Commissions |
1,115 | 965 | (150 | ) | (13.4 | ) | ||||||||||
Interconnection charges |
534 | 500 | (34 | ) | (6.4 | ) | ||||||||||
International interconnection fee |
240 | 173 | (68 | ) | (28.2 | ) | ||||||||||
Purchase of inventories |
4,454 | 3,682 | (772 | ) | (17.3 | ) | ||||||||||
Changes of inventories |
283 | 257 | (26 | ) | (9.2 | ) | ||||||||||
Sales commission |
2,316 | 2,337 | 21 | 0.9 | ||||||||||||
Service cost |
1,610 | 2,103 | 493 | 30.6 | ||||||||||||
Utilities |
333 | 361 | 28 | 8.4 | ||||||||||||
Taxes and dues |
278 | 283 | 5 | 2.0 | ||||||||||||
Rental expenses |
193 | 136 | (57 | ) | (29.5 | ) | ||||||||||
Insurance premium |
82 | 71 | (11 | ) | (13.8 | ) | ||||||||||
Installation fee |
155 | 132 | (23 | ) | (14.9 | ) | ||||||||||
Advertising expenses |
150 | 132 | (18 | ) | (11.8 | ) | ||||||||||
Research and development expenses |
165 | 157 | (8 | ) | (4.9 | ) | ||||||||||
Card service costs |
3,067 | 2,942 | (125 | ) | (4.1 | ) | ||||||||||
Impairment loss on property and equipment |
43 | 80 | 36 | 84.4 | ||||||||||||
Impairment loss on intangible assets |
62 | 212 | 150 | 241.9 | ||||||||||||
Others |
1,187 | 1,137 | (50 | ) | (4.2 | ) | ||||||||||
|
|
|
|
|
|
|||||||||||
Total operating expenses |
₩ |
23,872 | ₩ |
23,418 | ₩ |
(454 | ) | (1.9 | )% | |||||||
|
|
|
|
|
|
• | Our purchase of inventories decreased by 17.3%, or ₩ 772 billion, from ₩ 4,454 billion in 2019 to ₩ 3,682 billion in 2020 primarily due to a decrease in purchases of mobile handsets (consisting of a decrease in the total number of mobile handsets (mostly smartphones) and a decrease in the per-unit price of handsets). |
• | Commissions decreased by 13.4%, or ₩ 150 billion, from ₩ 1,115 billion in 2019 to ₩ 965 billion in 2020 primarily due to a decrease in commissions that we paid to call centers. |
• | Card service costs decreased by 4.1%, or ₩ 125 billion, from ₩ 3,067 billion in 2019 to ₩ 2,942 billion in 2020 primarily due to a decrease in the card service costs of BC Card as a result of a slowdown in the usage of credit cards during the COVID-19 pandemic. |
• | Service costs increased by 30.6%, or ₩ 493 billion, from ₩ 1,610 billion in 2019 to ₩ 2,103 billion in 2020 primarily due to service costs associated with the development of IT services for KTDS Co., Ltd. and the recognition of service costs incurred by KT Engineering Co., Ltd., in which we acquired a controlling interest in 2020. |
• | Impairment loss on intangible assets increased by 241.9%, or ₩ 150 billion, from ₩ 62 billion in 2019 to ₩ 212 billion in 2020 primarily due to an impairment loss of ₩ 193 billion on frequency usage rights in 2020. |
• | Salaries and wages increased by 3.8%, or ₩ 149 billion, from ₩ 3,974 billion in 2019 to ₩ 4,124 billion in 2020 primarily due to an increase in wages as well as the consolidation of salaries and wages of certain subsidiaries, such as KT Engineering Co., Ltd., in which we acquired a controlling interest in 2020. |
For the Year Ended December 31, |
Changes |
|||||||||||||||
2019 vs. 2020 |
||||||||||||||||
2019 |
2020 |
Amount |
% |
|||||||||||||
(In billions of Won) |
||||||||||||||||
Interest income |
₩ |
283 | ₩ |
271 | ₩ |
(12 | ) | (4.3 | )% | |||||||
Gain on foreign currency transactions |
25 | 17 | (7 | ) | (28.9 | ) | ||||||||||
Gain on foreign currency translation |
18 | 164 | 146 | 814.1 | ||||||||||||
Gain on settlement of derivatives |
9 | 9 | 0 | 4.2 | ||||||||||||
Gain on valuation of derivatives |
77 | 0 | (77 | ) | (99.8 | ) | ||||||||||
Others |
13 | 37 | 24 | 187.4 | ||||||||||||
|
|
|
|
|
|
|||||||||||
Total finance income |
₩ |
424 | ₩ |
499 | ₩ |
74 | 17.5 | |||||||||
|
|
|
|
|
|
|||||||||||
Interest expenses |
₩ |
278 | ₩ |
264 | ₩ |
(15 | ) | (5.3 | )% | |||||||
Loss on foreign currency transactions |
30 | 28 | (2 | ) | (8.1 | ) | ||||||||||
Loss on foreign currency translation |
94 | 26 | (68 | ) | (72.0 | ) | ||||||||||
Loss on settlement of derivatives |
0 | 1 | 1 | 6,930.0 | ||||||||||||
Loss on valuation of derivatives |
16 | 164 | 148 | 932.1 | ||||||||||||
Loss on disposal of trade receivables |
11 | 8 | (3 | ) | (27.8 | ) | ||||||||||
Others |
2 | 16 | 14 | 617.5 | ||||||||||||
|
|
|
|
|
|
|||||||||||
Total finance costs |
₩ |
432 | ₩ |
507 | ₩ |
75 | 17.4 | |||||||||
|
|
|
|
|
|
For the Years Ended December 31, |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
(In billions of Won) |
||||||||||||
Net cash inflow from operating activities |
₩ |
3,745 | ₩ |
4,740 | ₩ |
5,562 | ||||||
Net cash outflow from investing activities |
(3,887 | ) | (3,761 | ) | (5,137 | ) | ||||||
Net cash outflow from financing activities |
(250 | ) | (648 | ) | (41 | ) | ||||||
Cash and cash equivalents at beginning of the year |
2,703 | 2,306 | 2,635 | |||||||||
Cash and cash equivalents at end of the year |
2,306 | 2,635 | 3,020 | |||||||||
Net increase (decrease) in cash and cash equivalents |
(398 | ) | 329 | 384 |
As of December 31, |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
(In billions of Won) |
||||||||||||
Cash and cash equivalents |
₩ |
2,306 | ₩ |
2,635 | ₩ |
3,020 | ||||||
Trade and other receivables, net |
5,859 | 4,902 | 5,087 | |||||||||
Inventories, net |
792 | 535 | 514 | |||||||||
Other financial assets |
868 | 1,203 | 1,186 |
As of December 31, |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
(In billions of Won) |
||||||||||||
Trade and other payables |
₩ |
7,597 | ₩ |
6,210 | ₩ |
6,641 | ||||||
Borrowings |
1,186 | 1,418 | 1,731 |
• | the infrastructure digital transformation (“Infra DX”) R&D laboratory; |
• | the artificial intelligence to everything (“AI2XL”) R&D laboratory; and |
• | the convergence R&D laboratory. |
• | up to three inside directors, including the Representative Director; and |
• | up to eight outside directors. |
Name |
Position |
Director Since |
Date of Birth |
Expiration of Term of Office |
||||||||
Inside Directors (1) |
||||||||||||
Hyeon-Mo Ku |
Representative Director and Chief Executive Officer | March 2020 | January 13, 1964 | 2023 | ||||||||
Kyung-Lim Yun |
President, Head of Group Transformation Group | March 2022 | June 14, 1963 | 2023 | ||||||||
Outside Directors (1) |
||||||||||||
Dae-You Kim |
Outside Director, DB Life Insurance Co., Ltd. | March 2018 | July 21, 1951 | 2024 | ||||||||
Gang-Cheol Lee |
Outside Director, Paju Country Club Co., Ltd. | March 2018 | May 6, 1947 | 2024 | ||||||||
Hee-Yol Yu |
Board Chairperson, Korea Carbon Capture and Sequestration R&D Center | March 2019 | January 12, 1947 | 2025 | ||||||||
Hyun-Myung Pyo |
Outside Director, Hankook Tire & Technology Co.,Ltd. | March 2020 | October 21, 1958 | 2023 | ||||||||
Chung-Gu Kang |
Professor, School of Electrical Engineering, Korea University | March 2020 | December 12, 1962 | 2023 | ||||||||
Eun-Jung Yeo |
Professor, School of Business, Chung-Ang University |
March 2020 | February 15, 1973 | 2023 | ||||||||
Yong-Hun Kim |
Partner Lawyer, DR & AJU Law Group | March 2022 | March 29, 1955 | 2025 | ||||||||
Benjamin Hong |
Board Chairperson, LINA Korea Co.,Ltd. | March 2022 | February 20, 1958 | 2025 |
(1) | All of our inside and outside directors beneficially own less than one percent of the issued shares of KT Corporation in the aggregate. |
Name |
Title and Responsibilities |
Year of Birth |
||||
Kook-Hyun Kang |
President, Customer Business Group | 1963 | ||||
Jong-Ook Park |
President, Safety and Health Office (and) Corporate Planning Group | 1962 | ||||
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 | ||||
Jeong-Min Woo |
Senior Executive Vice President, IT Group | 1964 | ||||
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 | ||||
Yi-Han Kim |
Executive Vice President, Institute of Convergence Technology | 1966 | ||||
Chae-Hee Kim |
Executive Vice President, Strategy and Planning Office | 1974 | ||||
Hoon-Bae Kim |
Executive Vice President, Media Business Unit | 1963 | ||||
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 | 1967 | ||||
Kyung-Hwa Ok |
Executive Vice President, IT Strategy Unit | 1968 | ||||
Kong-Hwan Lee |
Executive Vice President, Policy Cooperation Office | 1966 | ||||
Sun-Joo Lee |
Executive Vice President, On External Training | 1969 | ||||
Chang-Ho Yi |
Executive Vice President, CEO Office | 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 Cho |
Executive Vice President, SCM Strategy Office | 1966 | ||||
Jung-Yong Ji |
Executive Vice President, Jeonnam/Jeonbuk Regional Headquarter | 1968 | ||||
Chan-Ki Choi |
Executive Vice President, Sales Operating Business Unit | 1966 | ||||
Jun Koh |
Senior Vice President, Legal Affairs P-TF |
1971 | ||||
Gang-Bon Koo |
Senior Vice President, Customer Business Unit | 1972 | ||||
Jae-Hyung Koo |
Senior Vice President, Network Research Technology Unit | 1972 | ||||
O-Ryung Kwon |
Senior Vice President, Group Strategic Partnership Office | 1969 | ||||
Hye-Jin Kwon |
Senior Vice President, Network Strategy Unit | 1971 | ||||
Hee-Keun Kwon |
Senior Vice President, Metropolitan Wholesale Unit | 1970 | ||||
Kwang-Dong Kim |
Senior Vice President, Policy Cooperation Department | 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, Convergence Laboratory | 1968 |
Name |
Title and Responsibilities |
Year of Birth |
||||
Sang-Kyoon Kim |
Senior Vice President, Management Support Office | 1970 | ||||
Seong-Il Kim |
Senior Vice President, Chungnam/Chungbuk Network O&M Headquarter | 1966 | ||||
Young-Sool Kim |
Senior Vice President, External Cooperation P-TF |
1967 | ||||
Young-Sik Kim |
Senior Vice President, DX Platform Business Unit | 1972 | ||||
Young-In Kim |
Senior Vice President, Southern Seoul/Western Seoul Network O&M Headquarter | 1968 | ||||
Jae-Kwon Kim |
Senior Vice President, Biz Customer Business Unit | 1968 | ||||
Jun-Ho Kim |
Senior Vice President, Public/Finance Customer Business Unit | 1965 | ||||
Gil-Hyun Ryu |
Senior Vice President, On External Training | 1968 | ||||
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 Office | 1972 | ||||
Young-Il Moon |
Senior Vice President, Information Security Unit | 1966 | ||||
Hye-Byung Min |
Senior Vice President, Enterprise Service DX Unit | 1969 | ||||
Sun-Ha Park |
Senior Vice President, Fieldwork Supporting 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 | ||||
Jung-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 Office | 1970 | ||||
Ki-Hong Seo |
Senior Vice President, Daegu/Gyeongbuk Enterprise Customer Sales Headquarter | 1967 | ||||
Young-Soo Seo |
Senior Vice President, Network O&M Unit | 1968 | ||||
Jeong-Hyun Seo |
Senior Vice President, Legal Affairs Department 3 | 1971 | ||||
Won-Je Sung |
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 | ||||
Yong-Kyu Yoo |
Senior Vice President, Enterprise Business Strategy Unit | 1971 | ||||
Chang-Kyu Yoo |
Senior Vice President, Northern Seoul/Gangwon Enterprise Customer Sales Headquarter | 1966 | ||||
Kyeong-Mo Youn |
Senior Vice President, SCM Strategy Department | 1969 | ||||
Jin-Hyoun Youn |
Senior Vice President, Media Business Unit Media R&D P-TF |
1968 | ||||
Mi-Hee Lee |
Senior Vice President, C-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 Human Resources Office | 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 Yim |
Senior Vice President, Digital & Bio Health Business Unit | 1970 | ||||
Jang-Mi Lim |
Senior Vice President, Convergence Laboratory Industry Biz 2 P-TF |
1966 | ||||
Kil-Sung Jung |
Senior Vice President, Corporate Strategy Department | 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, Artificial Intelligence and Big Data Business Unit | 1974 | ||||
Ja-Kyung Hahn |
Senior Vice President, Convergence Laboratory Industry Biz 1 P-TF |
1971 | ||||
Suk-Zoon Huh |
Senior Vice President, Institute of Economic and Business Research | 1967 | ||||
Tae-Jun Heo |
Senior Vice President, Enterprise Business Consulting and Implementation Unit | 1970 | ||||
Sung-Pil Hong |
Senior Vice President, Group Real Estate Unit | 1965 |
Name |
Position |
Total Compensation in 2021 |
Composition of Total Compensation | |||
(In millions of Won) | ||||||
Yoon-Young Park |
Former President | ₩ 2,020 |
₩ 74 (salary); ₩ 399 (bonus); ₩ 7 (benefits); ₩ 1,540 (severance pay) | |||
Hyeon-Mo Ku |
Chief Executive Officer | ₩ 1,522 |
₩ 556 (salary); ₩ 946 (bonus); ₩ 20 (benefits) | |||
Jong-Ook Park |
President | ₩ 985 |
₩ 454 (salary); ₩ 509 (bonus); ₩ 22 (benefits) | |||
Soo-Jung Shin |
Senior Executive Vice President | ₩ 836 |
₩ 378 (salary); ₩ 448 (bonus); ₩ 10 (benefits) | |||
Hyun-Yok Sheen |
Senior Executive Vice President | ₩ 810 |
₩ 365 (salary); ₩ 429 (bonus); ₩ 16 (benefits) |
• | appointing an independent registered public accounting firm; |
• | approving the appointment and recommending the dismissal of the internal auditor; |
• | evaluating performance of the independent registered public accounting firm; |
• | approving services to be provided by the independent registered public accounting firm; |
• | reviewing annual financial statements; |
• | reviewing audit results and reports; |
• | reviewing and evaluating our system of internal controls and policies |
• | examining improprieties or suspected improprieties; and |
• | on a quarterly basis, reviewing reports on internal controls for legal compliance, including with respect to cybersecurity laws. |
Shareholders |
Number of Ordinary Shares Owned |
|||
Hyeon-Mo Ku |
30,134 | |||
Kyung-Lim Yun |
1,100 | |||
Gang-Cheol Lee |
1,486 | |||
Dae-You Kim |
1,486 | |||
Hee-Yol Yu |
1,015 | |||
Hyun-Myung Pyo |
11,227 | |||
Chung-Gu Kang |
543 | |||
Eun-Jung Yeo |
543 | |||
Kook-Hyun Kang |
11,588 | |||
Jong-Ook Park |
14,197 | |||
Byung-Sam Park |
10,681 | |||
Chang-Seok Seo |
11,977 | |||
Jae-Ho Song |
10,208 | |||
Soo-Jung Shin |
10,124 | |||
Hyun-Yok Sheen |
10,837 | |||
Sang-Don Ahn |
3,165 | |||
Bong-Gyun Kim |
6,346 | |||
Young-Woo Kim |
4,737 | |||
Young-Jin Kim |
7,843 | |||
Yi-Han Kim |
6,286 | |||
Chae-Hee Kim |
4,791 | |||
Hoon-Bae Kim |
4,424 | |||
Chang-Yong Ahn |
5,743 | |||
Chi-Yong Ahn |
9,165 | |||
Yul-Mo Yang |
5,777 | |||
Kyung-Hwa Ok |
5,447 | |||
Kong-Hwan Lee |
1,905 | |||
Sun-Joo Lee |
4,725 | |||
Chang-Ho Yi |
4,797 | |||
Hyeon-Seuk Lee |
8,125 | |||
Jong-Taek Lim |
6,740 | |||
Sang-Kwi Chang |
8,444 | |||
Jung-Soo Jung |
5,589 | |||
Hoon Cho |
2,500 | |||
Jung-Yong Ji |
8,874 | |||
Chan-Ki Choi |
8,397 | |||
Jun Koh |
81 |
Shareholders |
Number of Ordinary Shares Owned |
|||
Gang-Bon Koo |
3,214 | |||
Jae-Hyung Koo |
95 | |||
O-Ryung Kwon |
36 | |||
Hye-Jin Kwon |
1,392 | |||
Hee-Keun Kwon |
127 | |||
Kwang-Dong Kim |
875 | |||
Moo-Seong Kim |
3,194 | |||
Byung-Kyun Kim |
3,467 | |||
Bong-Ki Kim |
3,699 | |||
Sang-Kyoon Kim |
3,134 | |||
Seong-Il Kim |
1,110 | |||
Young-Sool Kim |
81 | |||
Young-Sik Kim |
16 | |||
Young-In Kim |
2,876 | |||
Jae-Kwon Kim |
4,251 | |||
Jun-Ho Kim |
1,657 | |||
Gil-Hyun Ryu |
450 | |||
Pyeong Ryu |
9,803 | |||
Sang-Ryong Moon |
102 | |||
Sung-Uk Moon |
3,872 | |||
Young-Il Moon |
4,322 | |||
Hye-Byung Min |
5,143 | |||
Sun-Ha Park |
46 | |||
Yong-Man Park |
4,925 | |||
Jeong-Jun Park |
3,772 | |||
Jung-Ho Park |
234 | |||
Jong-Ho Park |
2,985 | |||
Hyo-Il Park |
5,155 | |||
Soon-Min Bae |
4,804 | |||
Seung-Yun Paik |
2,079 | |||
Ki-Hong Seo |
81 | |||
Young-Soo Seo |
5,746 | |||
Won-Je Sung |
81 | |||
Hoon-Joo Shin |
1,047 | |||
Jin-Ho Yang |
3,036 | |||
Jae-Min Eom |
2,066 | |||
Hun-Yong Oh |
7,268 | |||
Heung-Jae Won |
4,681 | |||
Yong-Kyu Yoo |
3,951 | |||
Chang-Kyu Yoo |
5,299 | |||
Kyeong-Mo Youn |
46 | |||
Jin-Hyoun Youn |
94 | |||
Mi-Hee Lee |
4,002 | |||
Sang-Il Lee |
1,913 | |||
Young-Jun Lee |
81 | |||
Young-Jin Lee |
81 | |||
Yong-Gyoo Lee |
4,171 | |||
Jong-Sik Lee |
2,754 | |||
Seung-Hyouk Yim |
3,131 | |||
Jang-Mi Lim |
1,151 | |||
Kil-Sung Jung |
91 | |||
Jae-Wook Jeong |
5,482 | |||
Seong-Eun Cho |
2,345 | |||
Young-Sim Jin |
595 | |||
Kang-Rim Choi |
2,952 | |||
Sung-Wook Choi |
2,150 | |||
Si-Hwan Choi |
2,100 | |||
Joon-Ki Choi |
1,101 | |||
Ja-Kyung Hahn |
1,486 | |||
Suk-Zoon Huh |
1,590 | |||
Tae-Jun Heo |
81 | |||
Sung-Pil Hong |
2,208 | |||
|
|
|||
400,824 | ||||
|
|
Shareholders |
Number of Shares |
Percent of Total Shares Issued |
||||||
National Pension Corporation |
33,098,617 | 12.68 | % | |||||
NTT DOCOMO, Inc. (1) |
14,257,813 | 5.46 | % | |||||
Silchester International Investors LLP |
13,588,760 | 5.20 | % | |||||
Employee stock ownership association |
993,785 | 0.38 | % | |||||
Directors as a group |
73,777 | 0.03 | % | |||||
Public |
173,795,394 | 66.56 | % | |||||
KT Corporation (held in the form of treasury stock) |
25,303,662 | 9.69 | % | |||||
|
|
|
|
|||||
Total issued shares |
261,111,808 | 100.00 | % | |||||
|
|
|
|
(1) | In January 2022, NTT DOCOMO, Inc. sold all of its equity interest in us to Shinhan Financial Group Co., Ltd. |
Year |
Annual Dividend per Ordinary Share |
Interim Dividend per Ordinary Share |
Average Total Dividend per Ordinary Share |
|||||||||
(In Won) |
(In Won) |
(In Won) |
||||||||||
2017 |
₩ |
1,000 | — | ₩ |
1,000 | |||||||
2018 |
1,100 | — | 1,100 | |||||||||
2019 |
1,100 | — | 1,100 | |||||||||
2020 |
1,350 | — | 1,350 | |||||||||
2021 |
1,910 | — | 1,910 |
• | publicly offered pursuant to Articles 4 and 119 of the FSCMA; |
• | issued to members of our employee stock ownership association; |
• | represented by depositary receipts; |
• | issued upon exercise of stock options granted to our officers and employees; |
• | issued through an offering to public investors pursuant to Article 165-6 of the FSCMA, the amount of which is no more than 10% of the issued Shares; |
• | issued in order to satisfy specific needs such as strategic alliance, inducement of foreign funds or new technology, improvement of financial structure or other capital raising requirement; or |
• | issued to domestic or foreign financial institutions when necessary for raising funds in emergency cases. |
• | as necessary; |
• | at the request of shareholders of an aggregate of 3.0% or more of our issued Ordinary Shares; |
• | at the request of shareholders holding an aggregate of 1.5% or more of our issued Shares for at least six months; or |
• | at the request of our Audit Committee. |
• | amending our articles of incorporation; |
• | removing a director; |
• | reduction of our share capital; |
• | effecting any dissolution, merger or consolidation of us; |
• | transferring the whole or any significant part of our business; |
• | effecting our acquisition of all of the business of any other company or our acquisition of a part of the business of any other company which will significantly affect our business; or |
• | issuing any new Shares at a price lower than their par value. |
• | odd-lot trading of shares; |
• | acquisition of shares (“Converted Shares”) by exercise of warrant, conversion right under convertible bonds or withdrawal right under depositary receipts issued outside of Korea by a Korean company; |
• | acquisition of shares as a result of inheritance, donation, bequest or exercise of shareholders’ rights, including preemptive rights or rights to participate in free distributions and receive dividends; |
• | over-the-counter |
• | shares acquired by foreign direct investment as defined in the Foreign Investment Promotion Act; |
• | disposal of shares pursuant to the exercise of appraisal rights of dissenting shareholders; |
• | disposal of shares in connection with a tender offer; |
• | acquisition of shares by a foreign depositary in connection with the issuance of depositary receipts; |
• | acquisition and disposal of shares through overseas stock exchange market if such shares are simultaneously listed on the KRX KOSPI Market or the KRX KOSDAQ Market and such overseas stock exchange; |
• | acquisition and disposal of shares through alternative trading systems (ATS); |
• | arm’s length transactions between foreigners, if all of such foreigners belong to an investment group managed by the same person. |
• | a resident of Korea; |
• | a corporation organized under Korean law; or |
• | engaged in a trade or business in Korea through a permanent establishment or a fixed base. |
• | a citizen or resident of the United States; |
• | a United States domestic corporation; or |
• | otherwise is subject to United States federal income taxation on a net income basis in respect of such ADSs or ordinary shares. |
• | a dealer in securities or currencies; |
• | a financial institution; |
• | a regulated investment company; |
• | a real estate investment trust; |
• | an insurance company; |
• | a tax-exempt organization; |
• | a person holding our ADSs or ordinary shares as part of a hedging, integrated or conversion transaction, a constructive sale or a straddle; |
• | a trader in securities that has elected the mark-to-market |
• | a person liable for alternative minimum tax; |
• | a person who owns or is deemed to own 10% or more of our stock (by vote or value); |
• | a partnership or other pass-through entity for United States federal income tax purposes; or |
• | a person whose “functional currency” is not the United States dollar. |
• | at least 75% of our gross income is passive income, or |
• | at least 50% of the value (determined based on a quarterly average) of our assets is attributable to assets that produce or are held for the production of passive income. |
• | the excess distribution or gain will be allocated ratably over your holding period for the ordinary shares, |
• | the amount allocated to the current taxable year, and any taxable year prior to the first taxable year in which we were a PFIC, will be treated as ordinary income, and |
• | the amount allocated to each other year will be subject to tax at the highest tax rate in effect for that year and the interest charge generally applicable to underpayments of tax will be imposed on the resulting tax attributable to each such year. |
As of December 31, |
||||||||||||||||||||||||
2019 |
2020 |
2021 |
||||||||||||||||||||||
(in thousands of foreign currencies) |
Financial assets |
Financial liabilities |
Financial assets |
Financial liabilities |
Financial assets |
Financial liabilities |
||||||||||||||||||
U.S. Dollar |
645,941 | 1,830,764 | 400,046 | 1,937,935 | 245,759 | 2,302,642 | ||||||||||||||||||
Special Drawing Right |
255 | 729 | 255 | 728 | 255 | 722 | ||||||||||||||||||
Japanese Yen |
24,930 | 80,000,000 | 209,376 | 46,000,009 | 29,227 | 30,000,763 | ||||||||||||||||||
British Pound |
— | 56 | — | — | — | 1,005 | ||||||||||||||||||
Euro |
1 | 6 | 316 | 162 | 3,943 | 10,801 | ||||||||||||||||||
Chinese Yuan |
457 | 161 | 458 | 491 | — | — | ||||||||||||||||||
Rwandan Franc |
706 | — | 646 | — | 586 | — | ||||||||||||||||||
Thai Bhat |
— | — | 535 | — | 2,160 | — | ||||||||||||||||||
Myanmar Kyat |
84 | — | — | — | — | — | ||||||||||||||||||
Tanzanian Shilling |
6,919 | — | 1,019 | — | 1,644 | — | ||||||||||||||||||
Botswana Pula |
911 | — | 212 | — | 93 | — | ||||||||||||||||||
Hong Kong Dollar |
— | 268 | — | 198 | — | 105 | ||||||||||||||||||
Bangladeshi Taka |
18,897 | — | — | — | — | — | ||||||||||||||||||
Polish Zloty |
— | — | 26 | — | — | — | ||||||||||||||||||
Vietnamese Dong |
271,563 | — | 242,370 | — | 257,895 | — | ||||||||||||||||||
Central African Franc |
97,411 | — | 16,229 | — | — | — | ||||||||||||||||||
Singapore Dollar |
— | — | 6 | 284,000 | 13 | 284,000 | ||||||||||||||||||
Taiwan Dollar |
— | — | — | — | — | 226 | ||||||||||||||||||
Swiss Franc |
— | — | — | — | — | 161 |
December 31, 2021 |
||||||||||||||||||||||||||||
2022 |
2023 |
2024 |
2025 |
Thereafter |
Total |
Fair Value |
||||||||||||||||||||||
(in millions of Won, except rates) |
||||||||||||||||||||||||||||
Local currency: |
||||||||||||||||||||||||||||
Fixed rate |
888,420 | 765,493 | 1,195,493 | 502,293 | 1,952,619 | 5,304,318 | 5,688,668 | |||||||||||||||||||||
Average weighted rate (1) |
1.70 | % | 2.06 | % | 2.07 | % | 2.22 | % | 2.52 | % | 2.18 | % | ||||||||||||||||
Variable rate |
20,000 | — | — | — | — | 20,000 | 20,000 | |||||||||||||||||||||
Average weighted rate (1) |
3.38 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | 3.38 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Sub-total |
908,420 | 765,493 | 1,195,493 | 502,293 | 1,952,619 | 5,324,318 | 5,708,668 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Foreign currency: |
||||||||||||||||||||||||||||
Fixed rate |
779,151 | — | 17,756 | 474,200 | 972,110 | 2,243,217 | 2,300,135 | |||||||||||||||||||||
Average weighted rate (1) |
1.68 | % | 0.00 | % | 2.16 | % | 1.00 | % | 2.58 | % | 1.93 | % | ||||||||||||||||
Variable rate |
42,310 | 423,271 | 425,261 | — | — | 890,842 | 876,926 | |||||||||||||||||||||
Average weighted rate (1) |
1.54 | % | 1.14 | % | 1.17 | % | 0.00 | % | 0.00 | % | 1.17 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Subtotal |
821,461 | 423,271 | 443,017 | 474,200 | 972,110 | 3,134,059 | 3,177,061 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total |
1,729,881 | 1,188,764 | 1,638,510 | 976,493 | 2,924,729 | 8,458,377 | 8,885,729 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) | Weighted average rates of the portfolio at the period end. |
Services |
Fees | |
Issuance of ADSs upon deposit of shares |
Up to $0.05 per ADS issued | |
Delivery of deposited shares against surrender of ADSs |
Up to $0.05 per ADS surrendered | |
Distribution delivery of ADSs pursuant to sale or exercise of rights |
Up to $0.02 per ADS held | |
Distributions of dividends |
None | |
Distribution of securities other than ADSs |
Up to $0.02 per ADS held | |
Other corporate action involving distributions to shareholders |
Up to $0.02 per ADS held |
• | fees for the transfer and registration of shares charged by the registrar and transfer agent for the shares in Korea ( i.e., |
• | expenses incurred for converting foreign currency into U.S. dollars; |
• | expenses for cable, telex and fax transmissions and for delivery of securities; |
• | taxes and duties upon the transfer of securities ( i.e., |
• | fees and expenses incurred in connection with the delivery or servicing of shares on deposit. |
Reimbursement of NYSE listing fees |
$ | 190,042.00 | ||
Reimbursement of SEC filing fees |
$ | 224,698.08 | ||
Reimbursement of proxy process expenses (printing, postage and distribution) |
$ | 112,190.89 | ||
Reimbursement of legal fees (reimbursement received in 2021 in respect of 2020) |
$ | 236,170.82 | ||
Contributions toward our investor relations efforts (including non-deal roadshows, investor conferences and investor relations agency fees) |
$ | 55,066.81 |
Year Ended December 31, |
||||||||
2020 |
2021 |
|||||||
(In millions) |
||||||||
Audit fees (1) |
₩ |
3,910 | ₩ |
4,255 | ||||
Tax fees (2) |
181 | 219 | ||||||
All other fees |
— | 10 | ||||||
Total fees |
4,091 | 4,484 | ||||||
(1) | Audit fees consist of fees for the annual audit and quarterly review services engagement and the comfort letters. |
(2) | Tax fees consist of fee for tax services which are mainly the preparation of tax returns or non-recurring tax compliance review of original or amended tax returns. |
Period |
Total Number of Shares Purchased |
Average Price Paid per Share (In Won) |
Total Number of Shares Purchased as Part of Publicly Announced Plans |
Approximate Value of Shares that May Yet Be Purchased Under the Plans (In billions of Won) |
||||||||||||
January 1 to January 31 |
2,993,586 | ₩ |
24,067 | 2,993,586 | ₩ |
117.8 | ||||||||||
February 1 to February 29 |
2,700,000 | 25,013 | 2,700,000 | 50.3 | ||||||||||||
March 1 to March 31 |
1,907,300 | 26,490 | 1,907,300 | — | ||||||||||||
April 1 to April 30 |
— | — | — | — | ||||||||||||
May 1 to May 31 |
— | — | — | — | ||||||||||||
June 1 to June 30 |
— | — | — | — | ||||||||||||
July 1 to July 31 |
— | — | — | — | ||||||||||||
August 1 to August 31 |
— | — | — | — | ||||||||||||
September 1 to September 30 |
— | — | — | — | ||||||||||||
October 1 to October 31 |
— | — | — | — | ||||||||||||
November 1 to November 30 |
— | — | — | — | ||||||||||||
December 1 to December 31 |
— | — | — | — | ||||||||||||
Total |
7,600,886 | ₩ |
25,011 | 7,600,886 | — | |||||||||||
NYSE Corporate Governance Standards |
KT Corporation’s Corporate Governance Practice | |
Director Independence |
||
Independent directors must comprise a majority of the board. | The Commercial Code of Korea requires that our board of directors must comprise no less than a majority of outside directors. Our outside directors must meet the criteria for outside directorship set forth under the Commercial Code of Korea. The majority of our board of directors is independent (as defined in accordance with the New York Stock Exchange’s standards), and 8 out of 10 directors are outside directors. | |
Nominating/Corporate Governance Committee |
||
Listed companies must have a nominating/corporate governance committee composed entirely of independent directors. | We have not established a nominating/corporate governance committee composed entirely of independent directors. However, we maintain an Outside Director Candidate Nominating Committee composed of all of our outside directors and one inside director. We also maintain a Corporate Governance Committee comprised of four outside directors and one inside director. |
Compensation Committee |
||
Listed companies must have a compensation committee composed entirely of independent directors. | We maintain an Evaluation and Compensation Committee composed of four outside directors. | |
Executive Session |
||
Non-management directors must meet in regularly scheduled executive sessions without management. |
Our outside directors hold meetings solely attended by outside directors in accordance with the charter of our board of directors. | |
Audit Committee |
||
Listed companies must have an audit committee which has a minimum of three directors and satisfy the requirements of Rule 10A-3 under the Exchange Act. |
We maintain an Audit Committee comprised of four outside directors who meet the applicable independence criteria set forth under Rule 10A-3 under the Exchange Act. | |
Shareholder Approval of Equity Compensation Plan |
||
Listed companies must allow their shareholders to exercise their voting rights with respect to any material revision to the company’s equity compensation plan. | We currently have three equity compensation plans: one providing for stock grants to officers and directors; another providing for performance bonuses to employees that are payable in cash or common shares based on election by the employees; and an employee stock ownership association program. All material matters related to the granting stock options are provided in our articles of incorporation, and any amendments to the articles of incorporation are subject to shareholders’ approval. Matters related to performance bonuses or the employee stock ownership association program are not subject to shareholders’ approval under Korean law. | |
Shareholder Approval of Equity Offerings |
||
Listed companies must allow its shareholders to exercise their voting rights with respect to equity offerings that do not qualify as public offerings for cash, and offerings of equity of related parties. | Voting rights are not separately provided for equity offerings that do not qualify as public offerings for cash, or offerings of equity of related parties. | |
Corporate Governance Guidelines |
||
Listed companies must adopt and disclose corporate governance guidelines. | We have adopted Corporate Governance Guidelines in March 2007 setting forth our practices with respect to corporate governance matters. Our Corporate Governance Guidelines are in compliance with Korean law but do not meet all requirements established by the New York Stock Exchange for U.S. companies listed on the exchange. A copy of our Corporate Governance Guidelines in Korean is available on our website at www.kt.com. | |
Code of Business Conduct and Ethics |
||
Listed companies must adopt and disclose a code of business conduct and ethics for directors, officers and employees, and promptly disclose any waivers of the code for executive officers. | We have adopted a Code of Ethics for all directors, officers and employees. A copy of our Code of Ethics in Korean is available on our website at www.kt.com |
Page |
||||
F-2 |
||||
F-6 |
||||
F-8 |
||||
F-9 |
||||
F-10 |
||||
F-13 |
||||
F-14 |
* | Filed previously. |
(P) | Paper filing. |
Page |
||||
F-2 |
||||
F-6 |
||||
F-8 |
||||
F-9 |
||||
F-10 |
||||
F-13 |
||||
F-14 |
(In millions of Korean won) |
Notes |
December 31, 2020 |
December 31, 2021 |
|||||||||
Assets |
||||||||||||
Current assets |
||||||||||||
Cash and cash equivalents |
4,5 | ₩ |
₩ |
|||||||||
Trade and other receivables, net |
4,6 | |||||||||||
Other financial assets |
4,7 | |||||||||||
Current income tax assets |
||||||||||||
Inventories, net |
8 | |||||||||||
Assets held for sale |
10 | |||||||||||
Other current assets |
9 | |||||||||||
|
|
|
|
|||||||||
Total current assets |
||||||||||||
|
|
|
|
|||||||||
Non-current assets |
||||||||||||
Trade and other receivables, net |
4,6 | |||||||||||
Other financial assets |
4,7 | |||||||||||
Property and equipment, net |
11 | |||||||||||
Right-of-use |
21 | |||||||||||
Investment properties, net |
12 | |||||||||||
Intangible assets, net |
13 | |||||||||||
Investments in associates and joint ventures |
14 | |||||||||||
Deferred income tax assets |
30 | |||||||||||
Other non-current assets |
9 | |||||||||||
|
|
|
|
|||||||||
Total non-current assets |
||||||||||||
|
|
|
|
|||||||||
Total assets |
₩ |
₩ |
||||||||||
|
|
|
|
(In millions of Korean won) |
Notes |
December 31, 2020 |
December 31, 2021 |
|||||||||
Liabilities |
||||||||||||
Current liabilities |
||||||||||||
Trade and other payables |
4,15 | ₩ |
₩ |
|||||||||
Borrowings |
4,16 | |||||||||||
Other financial liabilities |
4,7 | |||||||||||
Current income tax liabilities |
||||||||||||
Provisions |
17 | |||||||||||
Deferred revenue |
||||||||||||
Other current liabilities |
9 | |||||||||||
|
|
|
|
|||||||||
Total current liabilities |
||||||||||||
|
|
|
|
|||||||||
Non-current liabilities |
||||||||||||
Trade and other payables |
4,15 | |||||||||||
Borrowings |
4,16 | |||||||||||
Other financial liabilities |
4,7 | |||||||||||
Defined benefit liabilities, net |
18 | |||||||||||
Provisions |
17 | |||||||||||
Deferred revenue |
||||||||||||
Deferred income tax liabilities |
30 | |||||||||||
Other non-current liabilities |
9 | |||||||||||
|
|
|
|
|||||||||
Total non-current liabilities |
||||||||||||
|
|
|
|
|||||||||
Total liabilities |
||||||||||||
|
|
|
|
|||||||||
Equity |
||||||||||||
Share capital |
22 | |||||||||||
Share premium |
||||||||||||
Retained earnings |
23 | |||||||||||
Accumulated other comprehensive income |
24 | |||||||||||
Other components of equity |
24 | ( |
) | ( |
) | |||||||
|
|
|
|
|||||||||
Equity attributable to owners of the Controlling Company |
||||||||||||
|
|
|
|
|||||||||
Non-controlling interest |
||||||||||||
|
|
|
|
|||||||||
Total equity |
||||||||||||
|
|
|
|
|||||||||
Total liabilities and equity |
₩ |
₩ |
||||||||||
|
|
|
|
(In millions of Korean won) |
Notes |
2019 |
2020 |
2021 |
||||||||||
Operating revenue |
26 |
₩ |
₩ |
₩ |
||||||||||
Revenue |
||||||||||||||
Other income |
27 |
|||||||||||||
Operating expenses |
28 |
|||||||||||||
|
|
|
|
|
|
|||||||||
Operating profit |
||||||||||||||
Finance income |
29 |
|||||||||||||
Finance costs |
29 |
( |
) | ( |
) | ( |
) | |||||||
Share of net profits of associates and joint ventures |
14 |
( |
) | |||||||||||
|
|
|
|
|
|
|||||||||
Profit before income tax |
||||||||||||||
Income tax expense |
30 |
|||||||||||||
|
|
|
|
|
|
|||||||||
Profit for the year |
₩ |
₩ |
₩ |
|||||||||||
|
|
|
|
|
|
|||||||||
Profit for the year attributable to: |
||||||||||||||
Owners of the Controlling Company |
₩ |
₩ |
₩ |
|||||||||||
Non-controlling interest |
₩ |
₩ |
₩ |
|||||||||||
Earnings per share attributable to the equity holders of the Controlling Company during the year (in Korean won): |
||||||||||||||
Basic earnings per share |
31 |
₩ |
₩ |
₩ |
||||||||||
Diluted earnings per share |
31 |
₩ |
₩ |
₩ |
(In millions of Korean won) |
||||||||||||||||
Notes |
2019 |
2020 |
2021 |
|||||||||||||
Profit for the year |
₩ |
₩ |
₩ |
|||||||||||||
Other comprehensive income |
||||||||||||||||
Items that will not be reclassified to profit or loss: |
||||||||||||||||
Remeasurements of the net defined benefit liability |
18 | ( |
) | ( |
) | |||||||||||
Shares of remeasurement gain (loss) of associates and joint ventures |
( |
) | ||||||||||||||
Gain on valuation of equity instruments at fair value through other comprehensive income |
||||||||||||||||
Items that may be subsequently reclassified to profit or loss: |
||||||||||||||||
Gain (loss) on valuation of debt instruments at fair value through other comprehensive income |
( |
) | ( |
) | ||||||||||||
Valuation gain (loss) on cash flow hedge |
( |
) | ||||||||||||||
Other comprehensive income (loss) from cash flow hedges reclassified to profit (loss) |
( |
) | ( |
) | ||||||||||||
Share of other comprehensive income (loss) from associates and joint ventures |
( |
) | ||||||||||||||
Exchange differences on translation of foreign operations |
( |
) | ||||||||||||||
|
|
|
|
|
|
|||||||||||
Total other comprehensive income |
||||||||||||||||
|
|
|
|
|
|
|||||||||||
Total comprehensive income for the year |
₩ |
₩ |
₩ |
|||||||||||||
|
|
|
|
|
|
|||||||||||
Total comprehensive income for the year attributable to: |
||||||||||||||||
Owners of the Controlling Company |
||||||||||||||||
Non-controlling interest |
Attributable to owners of the Controlling Company |
||||||||||||||||||||||||||||||||||||
(In millions of Korean won) |
Notes |
Share capital |
Share premium |
Retained earnings |
Accumulated other comprehensive income |
Other components of equity |
Total |
Non-controlling interest |
Total equity |
|||||||||||||||||||||||||||
Balance as at December 31, 2018 |
₩ |
₩ |
₩ |
₩ |
₩ |
( |
) | ₩ |
₩ |
₩ |
||||||||||||||||||||||||||
Changes in accounting policy |
— | — | ( |
) | — | — | ( |
) | — | ( |
) | |||||||||||||||||||||||||
Adjusted total equity at the beginning of the financial year |
( |
) | ||||||||||||||||||||||||||||||||||
Comprehensive income |
||||||||||||||||||||||||||||||||||||
Profit for the year |
— | — | — | — | ||||||||||||||||||||||||||||||||
Remeasurements of net defined benefit liabilities |
18 | — | — | ( |
) | — | — | ( |
) | ( |
) | ( |
) | |||||||||||||||||||||||
Share of gain on remeasurements of associates and joint ventures |
— | — | — | — | ||||||||||||||||||||||||||||||||
Share of other comprehensive income of associates and joint ventures |
— | — | — | — | ||||||||||||||||||||||||||||||||
Valuation loss on cash flow hedge |
4,7 | — | — | — | — | |||||||||||||||||||||||||||||||
Gain on valuation of financial instruments at fair value through other comprehensive income |
4,7 | — | — | — | — | |||||||||||||||||||||||||||||||
Exchange differences on translation of foreign operations |
— | — | — | — | ||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Total comprehensive income for the year |
— | — | — | |||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Transactions with owners |
||||||||||||||||||||||||||||||||||||
Dividends paid by the Controlling Company |
— | — | ( |
) | — | — | ( |
) | — | ( |
) | |||||||||||||||||||||||||
Dividends paid to non-controlling interest of subsidiaries |
— | — | — | — | — | — | ( |
) | ( |
) | ||||||||||||||||||||||||||
Changes in scope of consolidation |
— | — | — | — | ( |
) | ( |
) | ||||||||||||||||||||||||||||
Changes in ownership interest in subsidiaries |
— | — | — | — | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||
Appropriations of loss on disposal of treasury stock |
— | — | ( |
) | — | — | — | — | ||||||||||||||||||||||||||||
Disposal of treasury stock |
— | — | — | — | — | |||||||||||||||||||||||||||||||
Others |
— | — | — | — | — | |||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Subtotal |
— | — | ( |
) | — | ( |
) | ( |
) | ( |
) | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Balance as at December 31, 2019 |
₩ |
₩ |
₩ |
₩ |
₩ |
( |
) | ₩ |
₩ |
₩ |
||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable to owners of the Controlling Company |
||||||||||||||||||||||||||||||||||||
(In millions of Korean won) |
Notes |
Share capital |
Share premium |
Retained earnings |
Accumulated other comprehensive income |
Other components of equity |
Total |
Non-controlling interest |
Total equity |
|||||||||||||||||||||||||||
Balance as at January 1, 2020 |
₩ |
₩ |
₩ |
₩ |
₩ |
( |
) | ₩ |
₩ |
₩ |
||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Comprehensive income |
||||||||||||||||||||||||||||||||||||
Profit for the year |
— | — | — | — | ||||||||||||||||||||||||||||||||
Remeasurements of net defined benefit liabilities |
18 | — | — | ( |
) | — | — | ( |
) | ( |
) | ( |
) | |||||||||||||||||||||||
Share of gain on remeasurements of associates and joint ventures |
— | — | — | — | ||||||||||||||||||||||||||||||||
Share of other comprehensive income of associates and joint ventures |
— | — | — | — | ||||||||||||||||||||||||||||||||
Valuation loss on cash flow hedge |
4,7 | — | — | — | — | ( |
) | |||||||||||||||||||||||||||||
Gain on valuation of financial instruments at fair value through other comprehensive income |
4,7 | — | — | ( |
) | — | ||||||||||||||||||||||||||||||
Exchange differences on translation of foreign operations |
— | — | — | ( |
) | — | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Total comprehensive income for the year |
— | — | ( |
) | — | |||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Transactions with owners |
||||||||||||||||||||||||||||||||||||
Dividends paid by the Controlling Company |
— | — | ( |
) | — | — | ( |
) | — | ( |
) | |||||||||||||||||||||||||
Dividends paid to non-controlling interest of subsidiaries |
— | — | — | — | — | — | ( |
) | ( |
) | ||||||||||||||||||||||||||
Changes in ownership interest in subsidiaries |
— | — | — | — | ||||||||||||||||||||||||||||||||
Appropriations of loss on disposal of treasury stock |
— | — | ( |
) | — | — | — | — | ||||||||||||||||||||||||||||
Acquisition of treasury stock |
— | — | — | — | ( |
) | ( |
) | — | ( |
) | |||||||||||||||||||||||||
Disposal of treasury stock |
— | — | — | — | — | |||||||||||||||||||||||||||||||
Others |
— | — | — | — | ( |
) | ( |
) | — | ( |
) | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Subtotal |
— | — | ( |
) | — | ( |
) | ( |
) | ( |
) | ( |
) | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Balance as at December 31, 2020 |
₩ |
₩ |
₩ |
₩ |
₩ |
( |
) | ₩ |
₩ |
₩ |
||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable to owners of the Controlling Company |
||||||||||||||||||||||||||||||||||||
(In millions of Korean won) |
Notes |
Share capital |
Share premium |
Retained earnings |
Accumulated other comprehensive income |
Other components of equity |
Total |
Non-controlling interest |
Total equity |
|||||||||||||||||||||||||||
Balance as at January 1, 2021 |
₩ |
₩ |
₩ |
₩ |
₩ |
( |
) | ₩ |
₩ |
₩ |
||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income |
||||||||||||||||||||||||||||||||||||
Profit for the year |
— | — | — | — | ||||||||||||||||||||||||||||||||
Remeasurements of net defined benefit liabilities |
18 | — | — | — | — | |||||||||||||||||||||||||||||||
Share of gain on remeasurements of associates and joint ventures |
— | — | ( |
) | — | — | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||
Share of other comprehensive income of associates and joint ventures |
— | — | — | ( |
) | — | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||
Valuation loss on cash flow hedge |
4,7 | — | — | — | — | |||||||||||||||||||||||||||||||
Gain on valuation of financial instruments at fair value through other comprehensive income |
4,7 | — | — | — | ||||||||||||||||||||||||||||||||
Exchange differences on translation of foreign operations |
— | — | — | ( |
) | — | ( |
) | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Total comprehensive income for the year |
— | — | — | |||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Transactions with owners |
||||||||||||||||||||||||||||||||||||
Dividends paid by the Controlling Company |
— | — | ( |
) | — | — | ( |
) | — | ( |
) | |||||||||||||||||||||||||
Dividends paid to non-controlling interest of subsidiaries |
— | — | — | — | — | — | ( |
) | ( |
) | ||||||||||||||||||||||||||
Changes in scope of consolidation |
— | — | — | — | — | — | ( |
) | ( |
) | ||||||||||||||||||||||||||
Changes in ownership interest in subsidiaries |
— | — | — | — | ( |
) | ( |
) | ||||||||||||||||||||||||||||
Appropriations of loss on disposal of treasury stock |
— | — | ( |
) | — | — | — | — | ||||||||||||||||||||||||||||
Acquisition of treasury stock |
— | — | — | — | ( |
) | ( |
) | — | ( |
) | |||||||||||||||||||||||||
Disposal of treasury stock |
— | — | — | — | — | |||||||||||||||||||||||||||||||
Recognition of the obligation to purchase its own equity |
— | — | — | — | ( |
) | ( |
) | — | ( |
) | |||||||||||||||||||||||||
Others |
— | — | — | — | ( |
) | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Subtotal |
— | — | ( |
) | — | ( |
) | ( |
) | ( |
) | ( |
) | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Balance as at December 31, 2021 |
₩ |
₩ |
₩ |
₩ |
₩ |
( |
) | ₩ |
₩ |
₩ |
||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of Korean won) |
||||||||||||||||
Notes |
2019 |
2020 |
2021 |
|||||||||||||
Cash flows from operating activities |
||||||||||||||||
Cash generated from operations |
33 | ₩ |
₩ |
₩ |
||||||||||||
Interest paid |
( |
) | ( |
) | ( |
) | ||||||||||
Interest received |
||||||||||||||||
Dividends received |
||||||||||||||||
Income tax paid |
( |
) | ( |
) | ( |
) | ||||||||||
|
|
|
|
|
|
|||||||||||
Net cash inflow from operating activities |
||||||||||||||||
|
|
|
|
|
|
|||||||||||
Cash flows from investing activities |
||||||||||||||||
Collection of loans |
||||||||||||||||
Loans granted |
( |
) | ( |
) | ( |
) | ||||||||||
Disposal of financial assets at fair value through profit or loss |
||||||||||||||||
Disposal of financial assets at amortized cost |
||||||||||||||||
Disposal of financial assets at fair value through other comprehensive income |
— | |||||||||||||||
Disposal of assets held-for-sale |
— | |||||||||||||||
Disposal of investments in associates and joint ventures |
||||||||||||||||
Acquisition of investments in associates and joint ventures |
( |
) | ( |
) | ( |
) | ||||||||||
Disposal of property and equipment, and investment properties |
||||||||||||||||
Acquisition of property and equipment, and investment properties |
( |
) | ( |
) | ( |
) | ||||||||||
Acquisition of financial assets at fair value through profit or loss |
( |
) | ( |
) | ( |
) | ||||||||||
Acquisition of financial assets at amortized cost |
( |
) | ( |
) | ( |
) | ||||||||||
Acquisition of financial assets at fair value through other comprehensive income |
( |
) | ( |
) | ( |
) | ||||||||||
Disposal of intangible assets |
||||||||||||||||
Disposal of right-of-use |
||||||||||||||||
Discontinued operations |
— | |||||||||||||||
Acquisition of intangible assets |
( |
) | ( |
) | ( |
) | ||||||||||
Acquisition of right-of-use |
( |
) | ( |
) | ( |
) | ||||||||||
Decrease in cash due to changes in scope of consolidation |
— | ( |
) | ( |
) | |||||||||||
Increase in cash due to changes in scope of consolidation |
— | — | ||||||||||||||
|
|
|
|
|
|
|||||||||||
Net cash outflow from investing activities |
( |
) | ( |
) | ( |
) | ||||||||||
|
|
|
|
|
|
|||||||||||
Cash flows from financing activities |
33 | |||||||||||||||
Proceeds from borrowings and debentures |
||||||||||||||||
Repayments of borrowings and debentures |
( |
) | ( |
) | ( |
) | ||||||||||
Settlement of derivative assets and liabilities, net |
( |
) | ||||||||||||||
Cash inflow from consolidated capital transactions |
— | — | ||||||||||||||
Cash outflow from consolidated capital transactions |
( |
) | ( |
) | ( |
) | ||||||||||
Cash inflow from other financing activities |
||||||||||||||||
Dividends paid to shareholders |
( |
) | ( |
) | ( |
) | ||||||||||
Acquisition of treasury stock |
— | ( |
) | ( |
) | |||||||||||
Cash outflow from other financing activities |
— | — | ( |
) | ||||||||||||
Decrease in finance leases liabilities |
( |
) | ( |
) | ( |
) | ||||||||||
Decrease in other liabilities |
— | ( |
) | — | ||||||||||||
|
|
|
|
|
|
|||||||||||
Net cash outflow from financing activities |
( |
) | ( |
) | ( |
) | ||||||||||
|
|
|
|
|
|
|||||||||||
Effect of exchange rate change on cash and cash equivalents |
( |
) | ( |
) | ||||||||||||
|
|
|
|
|
|
|||||||||||
Net increase (decrease) in cash and cash equivalents |
( |
) | ||||||||||||||
Cash and cash equivalents |
||||||||||||||||
Beginning of the year |
5 | |||||||||||||||
|
|
|
|
|
|
|||||||||||
End of the year |
5 | ₩ |
₩ |
₩ |
||||||||||||
|
|
|
|
|
|
1. |
General Information |
1.1 |
The Controlling Company |
1.2 |
Consolidated Subsidiaries |
Controlling percentage ownership 1 (%) |
||||||||||
Subsidiary |
Type of business |
Location |
December 31, 2020 |
December 31, 2021 |
Closing month | |||||
|
||||||||||
2,4 |
||||||||||
|
||||||||||
KT Alpha Co., Ltd. (KT Hitel Co., Ltd.) |
||||||||||
|
||||||||||
|
||||||||||
|
||||||||||
|
||||||||||
|
||||||||||
|
||||||||||
|
||||||||||
BC-VP Strategic Investment Fund No.1 |
Controlling percentage ownership 1 (%) |
||||||||||
Subsidiary |
Type of business |
Location |
December 31, 2020 |
December 31, 2021 |
Closing month | |||||
|
||||||||||
|
||||||||||
|
||||||||||
|
||||||||||
4 |
||||||||||
|
||||||||||
4 |
||||||||||
|
||||||||||
2,4 |
||||||||||
4 |
||||||||||
4 |
||||||||||
4 |
||||||||||
|
||||||||||
|
||||||||||
|
||||||||||
|
||||||||||
|
||||||||||
|
||||||||||
3,4 |
||||||||||
|
||||||||||
|
||||||||||
d |
||||||||||
2,4 |
||||||||||
2,4 |
||||||||||
|
||||||||||
|
||||||||||
|
||||||||||
|
||||||||||
|
||||||||||
|
Controlling percentage ownership 1 (%) |
||||||||||
Subsidiary |
Type of business |
Location |
December 31, 2020 |
December 31, 2021 |
Closing month | |||||
s Co., Ltd. |
||||||||||
K-REALTY RENTAL HOUSING REIT 3 |
||||||||||
., Ltd. (KT ENGCORE Co., Ltd.) |
construction and maintenance |
|||||||||
— | ||||||||||
— | ||||||||||
— | ||||||||||
— | ||||||||||
— | ||||||||||
— | ||||||||||
3 |
— | |||||||||
— | ||||||||||
munications Pte. Ltd. |
— | |||||||||
cations (SP) Pte. Ltd. |
— | |||||||||
cations (US) Pte. Ltd. |
— | |||||||||
— | ||||||||||
— | ||||||||||
ons (HK) Limited |
— | |||||||||
— | ||||||||||
ions (BG) EOOD |
— | |||||||||
3 |
— | |||||||||
Nasmedia-KT Alpha Future Growth Strategic Investment Fund |
— | |||||||||
— | ||||||||||
— |
Controlling percentage ownership 1 (%) |
||||||||||||
Subsidiary |
Type of business |
Location |
December 31, 2020 |
December 31, 2021 |
Closing month | |||||||
— | ||||||||||||
— | ||||||||||||
— | ||||||||||||
1 | Sum of the ownership interests owned by the Controlling Company and subsidiaries. |
2 | Although the Controlling Company owns less than 50% ownership in this entity, this entity is consolidated as the Controlling Company can exercise the majority voting rights in its decision-making process at all times considering the historical voting pattern at the shareholders’ meetings. |
3 | Although the Controlling Company owns less than 50% ownership in this entity, this entity is consolidated as the Controlling Company holds the majority of voting right based on an agreement with other investors. |
4 | The number of subsidiaries’ treasury stock is deducted from the total number of shares when calculating the controlling percentage ownership. |
1.3 |
Changes in Scope of Consolidation |
Changes |
Location |
Name of Subsidiary |
Reason | |||
Included |
Korea | KT Studio Genie Co., Ltd. | Newly established | |||
Included |
Korea | Lolab Co., Ltd. | Newly established | |||
Included |
Korea | KHS Corporation | Transferred | |||
Included |
Korea | HCN Co., Ltd. | Transferred | |||
Included |
Korea | MEDIA GENIE Co., Ltd. | Transferred | |||
Included |
Korea | KT Seezn Co., Ltd. | Transferred | |||
Included |
Korea | BOOK CLUB MILLIE | Transferred | |||
Included |
Singapore | KT ES Pte. Ltd. | Newly established | |||
Included |
Singapore | Epsilon Global Communications Pte. Ltd. |
Transferred | |||
Included |
Singapore | Epsilon Telecommunications (SP) Pte. Ltd. |
Transferred | |||
Included |
Singapore | Epsilon Telecommunications (US) Pte. Ltd. |
Transferred | |||
Included |
UK | Epsilon Telecommunications Limited | Transferred | |||
Included |
UK | 7D Digital Limited | Transferred | |||
Included |
Hong kong | Epsilon Telecommunications (HK) Limited |
Transferred | |||
Included |
USA | Epsilon US Inc. | Transferred |
Changes |
Location |
Name of Subsidiary |
Reason | |||
Included |
Bulgaria | Epsilon Telecommunications (BG) EOOD | Transferred | |||
Included |
Dubai | Epsilon M E A General Trading L.L.C | Transferred | |||
Included |
Korea | K-REALTY RENTAL HOUSINGREIT V |
Newly established | |||
Included |
Korea | Nasmedia-KT Alpha Future Growth Strategic Investment Fund |
Newly established | |||
Included |
Korea | KT Strategic Investment Fund 6 | Newly established | |||
Included |
Korea | Altimedia Corporation | Transferred | |||
Included |
Netherlands | Alticast B.V. | Transferred | |||
Included |
Vietnam | Alticast Company Limited | Transferred | |||
Included |
Vietnam | Wirecard (Vietnam) Company Limited | Transferred | |||
Included |
Philippines | KT Philippines | Transferred | |||
Excluded |
Belgium | KT Belgium | Liquidated | |||
Excluded |
Korea | KT Powertel Co., Ltd. | Shares disposed | |||
Excluded |
China | Korea Telecom China Co., Ltd. | Liquidated | |||
Excluded |
Poland | KBTO Sp.z o. o. | Liquidated | |||
Excluded |
Korea | GE Premier 1st Corporate Restructuring Real Estate Investment Trust Co. | Liquidated | |||
Excluded |
Korea | KT M Hows Co., Ltd. | Merged | |||
Excluded |
Netherlands | KT Dutch B.V. | Liquidated | |||
Excluded |
Korea | KT Music Contents Fund No.1 | Liquidated | |||
Excluded |
Korea | Autopion Co., Ltd. | Shares disposed | |||
Excluded |
Korea | K-REALTY RENTAL HOUSING REIT V |
Excluded from consolidation |
(In millions of Korean won) |
December 31, 2019 |
|||||||||||||||
Total assets |
Total liabilities |
Operating revenue |
Profit (loss) for the year |
|||||||||||||
₩ |
₩ |
₩ |
₩ |
|||||||||||||
( |
) | |||||||||||||||
( |
) | |||||||||||||||
( |
) | |||||||||||||||
1 |
||||||||||||||||
1 |
( |
) | ||||||||||||||
1 |
(In millions of Korean won) |
2019 |
|||||||||||||||
Total assets |
Total liabilities |
Operating revenue |
Profit (loss) for the year |
|||||||||||||
1 |
||||||||||||||||
1 |
||||||||||||||||
1 |
||||||||||||||||
( |
) | |||||||||||||||
( |
) | |||||||||||||||
( |
) | |||||||||||||||
( |
) | |||||||||||||||
1 |
||||||||||||||||
1 |
||||||||||||||||
( |
) | |||||||||||||||
1 |
||||||||||||||||
— |
( |
) | ||||||||||||||
( |
) | |||||||||||||||
1 |
||||||||||||||||
— |
— |
|||||||||||||||
2 |
( |
) | ||||||||||||||
— |
( |
) | ||||||||||||||
— |
( |
) | ||||||||||||||
( |
) | |||||||||||||||
2 |
( |
) | ||||||||||||||
( |
) | |||||||||||||||
— |
— |
— |
1 |
These companies are the intermediate controlling companies of other subsidiaries and the above financial information is from their consolidated financial statements. |
2 |
At the end of the reporting period, convertible preferred stock issued by subsidiaries is included in liabilities. |
(In millions of Korean won) |
December 31, 2020 |
|||||||||||||||
Total assets |
Total liabilities |
Operating revenues |
Profit (loss) for the year |
|||||||||||||
₩ |
₩ |
₩ |
₩ |
|||||||||||||
( |
) | |||||||||||||||
. (KT Hitel Co., Ltd.) |
||||||||||||||||
( |
) | |||||||||||||||
( |
) | |||||||||||||||
1 |
||||||||||||||||
1 |
||||||||||||||||
1 |
||||||||||||||||
1 |
||||||||||||||||
( |
) | |||||||||||||||
1 |
||||||||||||||||
1 |
||||||||||||||||
. (KTSB Data Service) |
||||||||||||||||
( |
) | |||||||||||||||
( |
) | |||||||||||||||
KT-Michigan Global Contents Fund |
( |
) | ||||||||||||||
( |
) | |||||||||||||||
( |
) | |||||||||||||||
1 |
||||||||||||||||
1 |
||||||||||||||||
( |
) | |||||||||||||||
1 |
||||||||||||||||
( |
) | |||||||||||||||
1 |
||||||||||||||||
2 |
( |
) | ||||||||||||||
( |
) |
( |
) | |||||||||||||
( |
) | |||||||||||||||
2 |
||||||||||||||||
g Telecommunications Co., Ltd. |
||||||||||||||||
( |
) | |||||||||||||||
( |
) | |||||||||||||||
. (KT ENGCORE Co., Ltd.) |
( |
) |
1 | These companies are the intermediate controlling companies of other subsidiaries and the above financial information is from their consolidated financial statements. |
2 | At the end of the reporting period, convertible preferred stock issued by subsidiaries is included in liabilities. |
(In millions of Korean won) |
December 31, 2021 |
|||||||||||||||
Total assets |
Total liabilities |
Operating revenues |
Profit (loss) for the year |
|||||||||||||
|
₩ |
₩ |
₩ |
₩ |
( |
|||||||||||
|
( |
) | ||||||||||||||
|
||||||||||||||||
Ltd. (KT Hitel Co., Ltd.) |
( |
) | ||||||||||||||
|
||||||||||||||||
|
||||||||||||||||
1 |
||||||||||||||||
1 |
||||||||||||||||
1 |
||||||||||||||||
1 |
||||||||||||||||
|
||||||||||||||||
|
||||||||||||||||
|
||||||||||||||||
1 |
||||||||||||||||
1 |
||||||||||||||||
|
||||||||||||||||
|
||||||||||||||||
|
( |
) | ||||||||||||||
|
( |
) | ||||||||||||||
|
||||||||||||||||
|
||||||||||||||||
1 |
( |
) | ||||||||||||||
1 |
||||||||||||||||
|
||||||||||||||||
|
( |
) | ||||||||||||||
1 |
( |
) | ||||||||||||||
|
||||||||||||||||
2 |
( |
) | ||||||||||||||
2 |
||||||||||||||||
|
||||||||||||||||
1 |
||||||||||||||||
d. (KT ENGCORE Co., Ltd.) |
||||||||||||||||
1,2 |
( |
) | ||||||||||||||
|
( |
) | ||||||||||||||
1 |
||||||||||||||||
1 |
( |
) | ||||||||||||||
|
||||||||||||||||
1 |
1 |
These companies are the intermediate controlling companies of other subsidiaries and the above financial information is from their consolidated financial statements. |
2 |
At the end of the reporting period, convertible preferred stock issued by subsidiaries is included in liabilities. |
2. |
Significant Accounting Policies |
2.1 |
Basis of Preparation |
• | Certain financial assets and liabilities (including derivative instruments) – measured at fair value |
• | Assets held-for-sale |
• | Defined benefit pension plans – plan assets measured at fair value |
2.2 |
Changes in Accounting Policy and Disclosures |
• | IFRS 1 First Time Adoption of Korean International Financial Reporting Standards |
• | IFRS 9 Financial Instruments |
• | IFRS 16 Leases |
• | IAS 41 Agriculture |
2.3 |
Consolidation |
2.4 |
Segment Reporting |
2.5 |
Foreign Currency Translation |
2.6 |
Financial Assets |
• | those to be measured at fair value through profit or loss |
• | those to be measured at fair value through other comprehensive income |
• | those to be measured at amortized cost |
• |
Amortized cost: Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortized cost. A gain or loss on a debt investment that is subsequently measured at amortized |
cost and is not part of a hedging relationship is recognized in profit or loss when the asset is derecognized or impaired. Interest income from these financial assets is included in ‘finance income’ using the effective interest rate method. |
• |
Fair value through other comprehensive income: Assets that are held for collection of contractual cash flows and for selling the financial assets, where the assets’ cash flows represent solely payments of principal and interest, are measured at fair value through other comprehensive income. Movements in the carrying amount are taken through other comprehensive income, except for the recognition of impairment loss (and reversal of impairment loss), interest income and foreign exchange gains and losses which are recognized in profit or loss. When the financial asset is derecognized, the cumulative gain or loss previously recognized in other comprehensive income is reclassified from equity to profit or loss. Interest income from these financial assets is included in ‘finance income’ using the effective interest rate method. Foreign exchange gains and losses are presented in ‘finance income or finance costs’ and impairment loss in ‘finance costs or operating expenses’. |
• | Fair value through profit or loss: Assets that do not meet the criteria for amortized cost or fair value through other comprehensive income are measured at fair value through profit or loss. A gain or loss on a debt investment that is subsequently measured at fair value through profit or loss and is not part of a hedging relationship is recognized in profit or loss and presented net in the statement of profit or loss within ‘finance income or finance costs’ in the period in which it arises. |
2.7 |
Derivative Instruments |
• | hedges of a particular risk associated with the cash flows of recognized assets and liabilities and highly probable forecast transactions (cash flow hedges) |
2.8 |
Trade Receivables |
2.9 |
Inventories |
2.10 |
Non-Current Assets (or Disposal Group) Held-for-Sale |
2.11 |
Property and Equipment |
Useful Life | ||
Buildings |
||
Structures |
||
Machinery and equipment (Telecommunications equipment and others) |
||
Vehicles |
||
Tools |
||
Office equipment |
2.12 |
Investment Property |
2.13 |
Intangible Assets |
Useful Life | ||
Development costs |
||
Software |
||
Frequency usage rights |
||
Others 1 |
1 |
Membership rights (condominium membership and golf membership) and broadcast license included in others are classified as intangible assets with indefinite useful life. |
2.14 |
Borrowing Costs |
2.15 |
Government Grants |
2.16 |
Impairment of Non-Financial Assets |
2.17 |
Trade and Other Payables |
2.18 |
Financial Liabilities |
2.19 |
Financial Guarantee Contracts |
• | the amount determined in accordance with the expected credit loss model under IFRS 9 Financial Instruments |
• | the amount initially recognized less, where appropriate, the cumulative amount of income recognized in accordance with IFRS 15 Revenue from Contracts with Customers |
2.20 |
Compound Financial Instruments |
2.21 |
Employee Benefits |
2.22 |
Share-Based Payments |
2.23 |
Provisions |
2.24 |
Leases |
• |
Fixed payments (including in-substance fixed payments), less any lease incentives receivable |
• |
Variable lease payment that are based on an index or a rate, initially measured using the index or rate as at the commencement date |
• |
Amounts expected to be payable by the Group (the lessee) under residual value guarantees |
• |
The exercise price of a purchase option if the Group (the lessee) is reasonably certain to exercise that option, and |
• |
Payments of penalties for terminating the lease, if the lease term reflects the Group (the lessee) exercising that option |
• | amount of the initial measurement of lease liability |
• | any lease payments made at or before the commencement date less any lease incentives received |
• | any initial direct costs (leasehold deposits) |
• | restoration costs |
2.25 |
Share Capital |
2.26 |
Revenue Recognition |
2.27 |
Current and Deferred Income Tax |
2.28 |
Dividend |
2.29 |
Approval of Issuance of the Financial Statements |
3. |
Critical Accounting Estimates and Assumptions |
3.1 |
Impairment of Non-Financial Assets (including Goodwill) |
3.2 |
Income Taxes |
3.3 |
Fair Value of Derivatives and Financial Instruments |
3.4 |
Impairment of Financial Assets |
3.5 |
Net Defined Benefit Liability |
3.6 |
Amortization of Contract Assets, Contract Liabilities and Contract Cost Assets |
3.7 |
Provisions |
3.8 |
Useful Lives of Property and Equipment and Investment Property |
3.9 |
Critical Judgments in Determining the Lease Term |
• | If there are significant penalties to terminate (or not extend), the Group is typically reasonably certain to extend (or not terminate). |
• | If any leasehold improvements are expected to have a significant remaining value, the Group is typically reasonably certain to extend (or not terminate). |
• | Otherwise, the Group considers other factors including historical lease durations and the costs and business disruption required to replace the leased asset. |
4. |
Financial Instruments by Category |
(In millions of Korean won) |
December 31, 2020 |
|||||||||||||||||||
Financial assets |
Financial assets at amortized cost |
Financial assets at fair value through profit or loss |
Financial assets at fair value through other comprehensive income |
Derivatives used for hedging |
Total |
|||||||||||||||
Cash and cash equivalents |
₩ |
₩ |
— | ₩ |
— | ₩ |
— | ₩ |
||||||||||||
Trade and other receivables |
— | — | ||||||||||||||||||
Other financial assets |
( I |
December 31, 2020 |
|||||||||||||||||||
Financial liabilities |
Financial liabilities at amortized cost |
Financial liabilities at fair value through profit and loss |
Derivatives used for hedging |
Others |
Total |
|||||||||||||||
Trade and other payables |
₩ |
₩ |
— | ₩ |
— | ₩ |
— | ₩ |
||||||||||||
Borrowings |
— | — | — | |||||||||||||||||
Other financial liabilities |
— | |||||||||||||||||||
Lease liabilities |
— | — | — |
(In millions of Korean won) |
December 31, 2021 |
|||||||||||||||||||
Financial assets |
Financial assets at amortized cost |
Financial assets at fair value through profit or loss |
Financial assets at fair value through other comprehensive income |
Derivatives used for hedging |
Total |
|||||||||||||||
Cash and cash equivalents |
₩ |
₩ |
— | ₩ |
— | ₩ |
— | ₩ |
||||||||||||
Trade and other receivables |
— | — | ||||||||||||||||||
Other financial assets |
( I n millions of Korean won) |
December 31, 2021 |
|||||||||||||||||||
Financial liabilities |
Financial liabilities at amortized cost |
Financial liabilities at fair value through profit and loss |
Derivatives used for hedging |
Others |
Total |
|||||||||||||||
Trade and other payables |
₩ |
₩ |
— | ₩ |
— | ₩ |
— | ₩ |
||||||||||||
Borrowings |
— | — | — | |||||||||||||||||
Other financial liabilities |
— | |||||||||||||||||||
Lease liabilities |
— | — | — |
(In millions of Korean won) |
2019 |
2020 |
2021 |
|||||||||
Financial assets at amortized cost |
||||||||||||
Interest income 1 |
₩ |
₩ |
₩ |
|||||||||
Gain (loss) on foreign currency transactions 4 |
( |
) | ||||||||||
Gain (loss) on foreign currency translation 4 |
( |
) | ( |
) | ||||||||
Gain (loss) on disposal |
( |
) | ||||||||||
Impairment loss |
( |
) | ( |
) | ( |
) | ||||||
Financial assets at fair value through profit or loss |
||||||||||||
Interest income 1 |
||||||||||||
Dividend income 5 |
||||||||||||
Gain on valuation 6 |
||||||||||||
Gain (loss) on disposal |
( |
) | ||||||||||
Loss on foreign currency transactions 4 |
— | ( |
) | — | ||||||||
Gain on foreign currency translation 4 |
( |
) | — | |||||||||
Financial assets at fair value through other comprehensive income |
||||||||||||
Interest income 1 |
||||||||||||
Dividend income 5 |
||||||||||||
Impairment loss |
( |
) | — | — | ||||||||
Loss on disposal |
( |
) | ( |
) | ( |
) | ||||||
Other comprehensive income for the year 2 |
(In millions of Korean won) |
2019 |
2020 |
2021 |
|||||||||
Derivative used for hedging |
||||||||||||
Gain on transactions |
||||||||||||
Loss (gain) on valuation |
( |
) | ||||||||||
Other comprehensive income (loss) for the year 2 |
( |
) | ||||||||||
Reclassified to profit or loss from other comprehensive income for the year 2,3 |
( |
) | ( |
) | ||||||||
Financial liabilities at fair value through profit or loss |
||||||||||||
Gain (loss) on valuation |
( |
) | ||||||||||
Gain on disposal |
||||||||||||
Loss (gain) on foreign currency transactions 4 |
( |
) | ||||||||||
Derivatives used for hedging |
||||||||||||
Gain on transactions |
( |
) | ||||||||||
Loss (gain) on valuation |
( |
) | ( |
) | ||||||||
Other comprehensive income (loss) for the year 2 |
( |
) | ( |
) | ||||||||
Reclassified to profit or loss from other comprehensive income for the year 2,3 |
( |
) | ||||||||||
Financial liabilities at amortized cost |
||||||||||||
Interest expense 1 |
( |
) | ( |
) | ( |
) | ||||||
Loss on foreign currency transactions 4 |
( |
) | ( |
) | ( |
) | ||||||
Gain (loss) on foreign currency translation 4 |
( |
) | ( |
) | ||||||||
Lease liabilities |
||||||||||||
Interest expense 1 |
( |
) | ( |
) | ( |
) | ||||||
|
|
|
|
|
|
|||||||
Total |
₩ |
₩ |
( |
) | ₩ |
|||||||
|
|
|
|
|
|
1 | BC Card Co., Ltd., etc., subsidiaries of the Group, recognized interest income and expenses as operating revenue and expenses, respectively. Related interest income recognized as operating revenue is ₩ 2019 2020: : ₩ million, ₩ m illion) and related interest expense recognized as operating expense is ₩ 2019: ₩ 2020: ₩ |
2 | The amounts directly reflected in equity after adjustments of deferred income tax. |
3 | During the current and previous year, certain derivatives of the Group was settled and the related gain or loss on valuation of cash flow hedge in other comprehensive income was reclassified to profit or loss for the year. |
4 | BC Card Co., Ltd., a subsidiary of the Group recognized foreign currency translation/transaction gain and loss and as operating revenue and expense. In relation to this, foreign currency translation gain and loss recognized as operating revenue and expense amount to translation gain ₩ million (2019: translation loss ₩ ₩ transaction gain and loss amount gain to transaction ₩ 19: trans ac tion loss ₩ 2020, : transaction loss ₩ m illion), respectively, for the year ended December 31, 2021. |
5 | BC Card Co., Ltd., etc., subsidiaries of the Group, recognized dividend income as operating revenue. Related dividend income recognized as operating revenue is ₩ million 2020: , ₩ 2021. |
6 |
KT Investment Co., Ltd., etc., subsidiaries of the Group, recognized financial instruments measured at fair value through profit or loss as operating revenue and expenses. In relation to |
this, valuation gain and loss recognized as operating revenue and expense amount to valuation |
|
loss ₩ ₩ 2020: valuation gain ₩ |
5. |
Cash and Cash Equivalents |
(In millions of Korean won) |
December 31, 2020 |
December 31, 2021 |
Description | |||
Bank deposits |
₩ |
₩ |
Deposit restricted for government project and others |
6. |
Trade and Other Receivables |
December 31, 2020 |
||||||||||||||||
(In millions of Korean won) |
Total amounts |
Provision for impairment |
Present value discount |
Carrying amount |
||||||||||||
Current assets |
||||||||||||||||
Trade receivables |
₩ |
₩ |
( |
) | ₩ |
( |
) | ₩ |
||||||||
Other receivables |
( |
) | ( |
) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
₩ |
₩ |
( |
) | ₩ |
( |
) | ₩ |
|||||||||
|
|
|
|
|
|
|
|
|||||||||
Non-current assets |
||||||||||||||||
Trade receivables |
₩ |
₩ |
( |
) | ₩ |
( |
) | ₩ |
||||||||
Other receivables |
( |
) | ( |
) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
₩ |
₩ |
( |
) | ₩ |
( |
) | ₩ |
|||||||||
|
|
|
|
|
|
|
|
December 31, 2021 |
||||||||||||||||
(In millions of Korean won) |
Total amounts |
Provision for impairment |
Present value discount |
Carrying amount |
||||||||||||
Current assets |
||||||||||||||||
Trade receivables |
₩ |
₩ |
( |
) | ₩ |
( |
) | ₩ |
||||||||
Other receivables |
( |
) | ( |
) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
₩ |
₩ |
( |
) | ₩ |
( |
) | ₩ |
|||||||||
|
|
|
|
|
|
|
|
|||||||||
Non-current assets |
||||||||||||||||
Trade receivables |
₩ |
₩ |
( |
) | ₩ |
( |
) | ₩ |
||||||||
Other receivables |
( |
) | ( |
) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
₩ |
₩ |
( |
) | ₩ |
( |
) | ₩ |
|||||||||
|
|
|
|
|
|
|
|
2020 |
2021 |
|||||||||||||||
(In millions of Korean won) |
Trade receivables |
Other receivables |
Trade receivables |
Other receivables |
||||||||||||
Beginning balance |
₩ |
₩ |
₩ |
₩ |
||||||||||||
Provision |
||||||||||||||||
Reversal |
— | ( |
) | — | ( |
) | ||||||||||
Written-off or transfer out |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Change in consolidation scope |
( |
) | ||||||||||||||
Others |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Ending balance |
₩ |
₩ |
₩ |
₩ |
||||||||||||
|
|
|
|
|
|
|
|
(In millions of Korean won) |
December 31, 2020 |
December 31, 2021 |
||||||
Loans |
₩ |
₩ |
||||||
Receivables 1 |
||||||||
Accrued income |
||||||||
Refundable deposits |
||||||||
Loans receivable |
||||||||
Finance lease receivables |
||||||||
Others |
||||||||
Less: Provision for impairment |
( |
) | ( |
) | ||||
|
|
|
|
|||||
₩ |
₩ |
|||||||
|
|
|
|
1 | Settlement receivables of BC Card Co., Ltd., a subsidiary of the Group, of ₩ ₩ |
7. |
Other Financial Assets and Liabilities |
(In millions of Korean won) |
December 31, 2020 |
December 31, 2021 |
||||||
Other financial assets |
||||||||
Financial assets at amortized cost 1 |
₩ |
₩ |
||||||
Financial assets at fair value through profit or loss 1,2,3 |
||||||||
Financial assets at fair value through other comprehensive income 1,3 |
||||||||
Derivative used for hedging |
||||||||
Less: Non-current |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Current |
₩ |
₩ |
||||||
|
|
|
|
|||||
Other financial liabilities |
||||||||
Financial liabilities at amortized cost 4 |
₩ |
₩ |
||||||
Financial liabilities at fair value through profit or loss |
||||||||
Derivatives used for hedging |
||||||||
Less: Non-current |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Current |
₩ |
₩ |
||||||
|
|
|
|
1 | As at December 31, 2021, the Group’s other financial assets amounting to ₩ ₩ |
2 | As at December 31, 2021, MMW(Money Market Wrap) and MMT(Money Market Trust) amounting to ₩ ₩ |
3 | As at December 31, 2021, the Group provided investments in Korea Software Financial Cooperative amounting to ₩ ₩ |
4 | The amount includes liabilities related to the obligation to acquire additional shares in Epsilon Global Communications Pte. Ltd. and BOOK CLUB MILLIE (Note 20). |
(In millions of Korean won) |
December 31, 2020 |
December 31, 2021 |
||||||
Equity Instruments (Listed) |
₩ |
₩ |
||||||
Equity Instruments (Unlisted) |
||||||||
Debt securities |
||||||||
Derivatives held for trading |
||||||||
|
|
|
|
|||||
Total |
||||||||
Less: non-current |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Current |
₩ |
₩ |
||||||
|
|
|
|
(In millions of Korean won) |
December 31, 2020 |
December 31, 2021 |
||||||
Equity Instruments (Listed) |
₩ |
₩ |
||||||
Equity Instruments (Unlisted) |
||||||||
Debt securities |
||||||||
|
|
|
|
|||||
Total |
||||||||
Less: non-current |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Current |
₩ |
₩ |
||||||
|
|
|
|
December 31, 2020 |
December 31, 2021 |
|||||||||||||||
(In millions of Korean won) |
Assets |
Liabilities |
Assets |
Liabilities |
||||||||||||
Interest rate swap 1 |
₩ |
— | ₩ |
₩ |
— | ₩ |
||||||||||
Currency swap 2, 3 |
||||||||||||||||
Currency forwards 4 |
— | |||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
||||||||||||||||
Less: non-current |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Current |
₩ |
₩ |
₩ |
₩ |
||||||||||||
|
|
|
|
|
|
|
|
1 | The interest rate swap contract is to hedge the risk of variability in future fair value of the borrowings. |
2 | The currency swap contract is to hedge the risk of variability in cash flow from the borrowings. In applying the cash flow hedge accounting, the Group hedges its exposures to cash flow fluctuation until September 7, 2034. |
3 | The amount of derivatives subject to the second phase of interest rate indicator reform is |
4 | The currency forward contract is to hedge the risk of variability in cash flow from transactions in foreign currencies due to changes in foreign exchange rate. |
(In millions of Korean won) |
2019 |
2020 |
2021 |
|||||||||||||||||||||||||||||||||
Type of Transaction |
Valuation gain |
Valuation loss |
Other comprehensive income 1 |
Valuation gain |
Valuation loss |
Other comprehensive income 1 |
Valuation gain |
Valuation Loss |
Other comprehensive income 1 |
|||||||||||||||||||||||||||
Interest rate swap |
₩ |
— | ₩ |
₩ |
( |
) | ₩ |
— | ₩ |
— | ₩ |
( |
) | ₩ |
— | ₩ |
— | ₩ |
||||||||||||||||||
Currency swap |
— | ( |
) | |||||||||||||||||||||||||||||||||
Currency forwards |
— | — | — | — | — | — | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Total |
₩ |
₩ |
₩ |
₩ |
— | ₩ |
₩ |
( |
) | ₩ |
₩ |
₩ |
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 | The amounts before adjustments of deferred income tax directly reflected in equity and allocation to the non-controlling interest. |
(In millions of Korean won and thousands of foreign currencies) |
2020 |
|||||||||||||||||||
Book value of hedging instruments |
Changes in fair value to calculate the ineffective portion of hedges |
|||||||||||||||||||
Currency |
Foreign currency |
Contract amount |
Assets |
Liabilities |
||||||||||||||||
USD |
₩ |
₩ |
₩ |
₩ |
( |
) | ||||||||||||||
JPY |
( |
) | ||||||||||||||||||
SGD |
( |
) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Total |
₩ |
₩ |
₩ |
₩ |
( |
) | ||||||||||||||
|
|
|
|
|
|
|
|
(In millions of Korean won and thousands of foreign currencies) |
2021 |
|||||||||||||||||||
Book value of hedging instruments |
Changes in fair value to calculate the ineffective portion of hedges |
|||||||||||||||||||
Currency |
Foreign currency |
Contract amount |
Assets |
Liabilities |
||||||||||||||||
USD |
₩ |
₩ |
₩ |
₩ |
||||||||||||||||
JPY |
( |
) | ||||||||||||||||||
SGD |
||||||||||||||||||||
EUR |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Total |
₩ |
₩ |
₩ |
₩ |
||||||||||||||||
|
|
|
|
|
|
|
|
(In millions of Korean won) |
||||||||||||||||||||||||
2020 |
2021 |
|||||||||||||||||||||||
Currency |
Book value of hedged items |
Changes in fair value to calculate the ineffective portion of hedges |
Cash flow hedge reserves 1 |
Book value of hedged items |
Changes in fair value to calculate the ineffective portion of hedges |
Cash flow hedge reserves 1 |
||||||||||||||||||
USD |
₩ |
₩ |
₩ |
₩ |
₩ |
( |
) | ₩ |
||||||||||||||||
JPY |
( |
) | ||||||||||||||||||||||
SGD |
( |
) | ||||||||||||||||||||||
EUR |
( |
) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
₩ |
₩ |
₩ |
₩ |
₩ |
( |
) | ₩ |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
1 | The amounts after adjustments of deferred income tax directly reflected in equity. |
(In millions of Korean won) |
December 31, 2020 |
December 31, 2021 |
||||||
Derivatives held for trading 1,2 |
₩ |
₩ |
||||||
|
|
|
|
1 | The Group signed a shareholder-to-share agreement with financial investors participating in the paid-in capital increase of K Bank for the year period ended December 31, 2021. According to the Drag-Along Right, if K Bank fails to be listed on the terms agreed upon for the date of completion of the acquisition, financial investors may exercise the Drag-Along right to the Group, and the Group may comply or exercise the right to claim for sale. If financial investors exercise the Drag-Along Right, the Group must exercise the right to claim for sale or guarantee the return on the terms agreed upon by financial investors. |
2 | The amount includes derivatives for redeemable convertible preference shares and convertible bonds issued by the Group (Note 16). |
2019 |
2020 |
2021 |
||||||||||||||||||||||
(In millions of Korean won) |
Valuation gain |
Valuation loss |
Valuation gain |
Valuation loss |
Valuation gain |
Valuation loss |
||||||||||||||||||
Derivatives held for trading |
₩ |
₩ |
₩ |
₩ |
₩ |
₩ |
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
8. |
Inventories |
December 31, 2020 |
December 31, 2021 |
|||||||||||||||||||||||
(In millions of Korean won) |
Acquisition cost |
Valuation allowance |
Book amount |
Acquisition cost |
Valuation allowance |
Book amount |
||||||||||||||||||
Merchandise |
₩ |
₩ |
( |
) | ₩ |
₩ |
₩ |
( |
) | ₩ |
||||||||||||||
Others |
— | — | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
₩ |
₩ |
( |
) | ₩ |
₩ |
₩ |
( |
) | ₩ |
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
9. |
Other Assets and Liabilities |
(In millions of Korean won) |
December 31, 2020 |
December 31, 2021 |
||||||
Other assets |
||||||||
Advance payments |
₩ |
₩ |
||||||
Prepaid expenses |
||||||||
Contract cost |
||||||||
Contract assets |
||||||||
Others |
||||||||
Less: Non-current |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Current |
₩ |
₩ |
||||||
|
|
|
|
|||||
Other liabilities |
||||||||
Advances received 1 |
₩ |
₩ |
||||||
Withholdings |
||||||||
Unearned revenue 1 |
||||||||
Lease liabilities |
||||||||
Contract liabilities |
||||||||
Others |
||||||||
Less: Non-current |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Current |
₩ |
₩ |
||||||
|
|
|
|
1 | The amounts include adjustments arising from adoption of IFRS 15 (Note 26). |
10. |
Assets Held for Sale |
( I n millions of Korean won) |
||||
Land |
₩ |
|||
Buildings |
||||
Others |
||||
|
|
|||
Total |
₩ |
|||
|
|
11. |
Property and Equipment |
2020 |
||||||||||||||||||||||||
(In millions of Korean won) |
Land |
Buildings and structures |
Machinery and equipment |
Others |
Construction- in-progress |
Total |
||||||||||||||||||
Acquisition cost |
₩ |
₩ |
₩ |
₩ |
₩ |
₩ |
||||||||||||||||||
Less: Accumulated depreciation (including accumulated impairment loss and others) |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Beginning, net |
||||||||||||||||||||||||
Acquisition and capital expenditure |
||||||||||||||||||||||||
Disposal and termination |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
Depreciation |
— | ( |
) | ( |
) | ( |
) | — | ( |
) | ||||||||||||||
Impairment |
— | ( |
) | ( |
) | ( |
) | ( |
) | |||||||||||||||
Transfer in (out) |
( |
) | ( |
) | ||||||||||||||||||||
Transfer from (to) investment properties |
( |
) | — | — | — | ( |
) | |||||||||||||||||
Changes in scope of consolidation |
— | |||||||||||||||||||||||
Others |
( |
) | ( |
) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Ending, net |
₩ |
₩ |
₩ |
₩ |
₩ |
₩ |
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Acquisition cost |
₩ |
₩ |
₩ |
₩ |
₩ |
₩ |
||||||||||||||||||
Less: Accumulated depreciation (including accumulated impairment loss and others) |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) |
2021 |
||||||||||||||||||||||||
(In millions of Korean won) |
Land |
Buildings and structures |
Machinery and equipment |
Others |
Construction- in-progress |
Total |
||||||||||||||||||
Acquisition cost |
₩ |
₩ |
₩ |
₩ |
₩ |
₩ |
||||||||||||||||||
Less: Accumulated depreciation (including accumulated impairment loss and others) |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Beginning, net |
||||||||||||||||||||||||
Acquisition and capital expenditure |
||||||||||||||||||||||||
Disposal and termination |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
Depreciation |
— | ( |
) | ( |
) | ( |
) | — | ( |
) | ||||||||||||||
Impairment |
— | ( |
) | ( |
) | ( |
) | |||||||||||||||||
Transfer in (out) |
( |
) | ( |
) | ||||||||||||||||||||
Transfer from (to) investment properties |
( |
) | ( |
) | — | — | — | ( |
) | |||||||||||||||
Changes in scope of consolidation |
||||||||||||||||||||||||
Others |
( |
) | ( |
) | ( |
) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Ending, net |
₩ |
₩ |
₩ |
₩ |
₩ |
₩ |
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Acquisition cost |
₩ |
₩ |
₩ |
₩ |
₩ |
₩ |
||||||||||||||||||
Less: Accumulated depreciation (including accumulated impairment loss and others) |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) |
(In millions of Korean won) |
December 31, 2020 | |||||||||||||||||
Carrying amount |
Secured amount |
Related line item |
Related amount |
Secured party | ||||||||||||||
Land and Buildings |
₩ |
₩ |
₩ |
Bank of Korea, Korea Development Bank | ||||||||||||||
₩ |
₩ |
₩ |
(In millions of Korean won) |
December 31, 2021 | |||||||||||||||||
Carrying amount |
Secured amount |
Related line item |
Related amount |
Secured party | ||||||||||||||
Land and Buildings |
₩ |
₩ |
₩ |
Bank of Korea, Korea Development Bank |
12. |
Investment Properties |
(In millions of Korean won) |
2020 |
|||||||||||||||
Land |
Buildings |
Construction- in-progress |
Total |
|||||||||||||
Acquisition cost |
₩ |
₩ |
₩ |
₩ |
||||||||||||
Less: Accumulated depreciation |
( |
) | ( |
) | — | ( |
) | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Beginning, net |
₩ |
₩ |
₩ |
₩ |
||||||||||||
Acquisition |
||||||||||||||||
Disposal and termination |
( |
) | ( |
) | — | ( |
) | |||||||||
Depreciation |
— | ( |
) | — | ( |
) | ||||||||||
Transfer from(to) property and equipment |
( |
) | — | |||||||||||||
Transfer and others |
( |
) | ( |
) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Ending, net |
₩ |
₩ |
₩ |
₩ |
||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Acquisition cost |
₩ |
₩ |
₩ |
₩ |
||||||||||||
Less: Accumulated depreciation |
( |
) | ( |
) | — | ( |
) |
(In millions of Korean won) |
2021 |
|||||||||||||||
Land |
Buildings |
Construction- in-progress |
Total |
|||||||||||||
Acquisition cost |
₩ |
₩ |
₩ |
₩ |
||||||||||||
Less: Accumulated depreciation |
( |
) | ( |
) | — | ( |
) | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Beginning, net |
₩ |
₩ |
₩ |
₩ |
||||||||||||
Acquisition |
||||||||||||||||
Disposal and termination |
( |
) | ( |
) | — | ( |
) | |||||||||
Depreciation |
— | ( |
) | — | ( |
) | ||||||||||
Transfer from(to) property and equipment |
— | |||||||||||||||
Changes in scope of consolidation |
— | |||||||||||||||
Transfer and others |
( |
) | ( |
) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Ending, net |
₩ |
₩ |
₩ |
₩ |
||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Acquisition cost |
₩ |
₩ |
₩ |
₩ |
||||||||||||
Less: Accumulated depreciation |
( |
) | ( |
) | — | ( |
) |
(In millions of Korean won) |
December 31, 2020 |
|||||||||||||
Carrying amount |
Secured amount |
Related account |
Related amount |
|||||||||||
Land and Buildings |
₩ |
₩ |
₩ |
|||||||||||
Land and Buildings |
₩ |
₩ |
₩ |
(In millions of Korean won) |
December 31, 2021 |
|||||||||||||
Carrying amount |
Secured amount |
Related account |
Related amount |
|||||||||||
Land and Buildings |
₩ |
₩ |
₩ |
|||||||||||
Land and Buildings |
₩ |
₩ |
₩ |
13. |
Intangible Assets |
2020 |
||||||||||||||||||||||||
(In millions of Korean won) |
Goodwill |
Development costs |
Software |
Frequency usage rights |
Others |
Total |
||||||||||||||||||
Acquisition cost |
₩ |
₩ |
₩ |
₩ |
₩ |
₩ |
||||||||||||||||||
Less: Accumulated amortization (including accumulated impairment loss and others) |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Beginning, net |
₩ |
₩ |
₩ |
₩ |
₩ |
₩ |
||||||||||||||||||
Acquisition and capital expenditure |
— | — | ||||||||||||||||||||||
Disposal and termination |
— | ( |
) | ( |
) | ( |
) | ( |
) | |||||||||||||||
Amortization |
— | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | |||||||||||||
Impairment 1 |
— | — | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||
Changes in scope of consolidation |
— | — | ||||||||||||||||||||||
Others |
( |
) | ( |
) | ( |
) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Ending, net |
₩ |
₩ |
₩ |
₩ |
₩ |
₩ |
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Acquisition cost |
||||||||||||||||||||||||
Less: Accumulated amortization (including accumulated impairment loss and others) |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) |
1 | For the year ended December 31, 2020, an impairment loss of ₩ |
2021 |
||||||||||||||||||||||||
(In millions of Korean won) |
Goodwill |
Development costs |
Software |
Frequency usage rights |
Others 1 |
Total |
||||||||||||||||||
Acquisition cost |
₩ |
₩ |
₩ |
₩ |
₩ |
₩ |
||||||||||||||||||
Less: Accumulated amortization (including accumulated impairment loss and others) |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Beginning, net |
₩ |
₩ |
₩ |
₩ |
₩ |
₩ |
||||||||||||||||||
Acquisition and capital expenditure |
||||||||||||||||||||||||
Disposal and termination |
— | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | |||||||||||||
Amortization |
— | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | |||||||||||||
Impairment |
— | ( |
) | ( |
) | ( |
) | ( |
) | |||||||||||||||
Changes in scope of consolidation |
( |
) | ( |
) | — | |||||||||||||||||||
Others |
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Ending, net |
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Acquisition cost |
||||||||||||||||||||||||
Less: Accumulated amortization (including accumulated impairment loss and others) |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) |
1 | The carrying amount of membership rights and others, excluding goodwill, with indefinite useful life not subject to amortization is ₩ 20 : ₩ |
(In millions of Korean won) |
900MHz |
1.8GHz |
2.1GHz |
|||||||||
Payment amount 1 |
₩ |
₩ |
₩ |
|||||||||
|
|
|
|
|
|
1 | The Group paid a certain portion of the full payment in a lump sum during the year ended December 31, 2021, and plans to make the remainder payment in annual installment for the next five years. |
(In millions of Korean won) |
||||||
Operating Segment |
Cash generating Unit |
Amount |
||||
ICT 10 |
Mobile services 1 |
₩ |
||||
Finance |
BC Card Co., Ltd. 2 |
|||||
Satellite TV |
HCN Co., Ltd. 3 |
|||||
Others |
GENIE Music Corporation 4 |
|||||
BOOK CLUB MILL I E 5 |
||||||
PlayD Co., Ltd. 6 |
||||||
KT Telecop Co., Ltd. 7 |
||||||
Epsilon Global Communications Pte. Ltd. 8 |
||||||
MEDIA GENIE Co., Ltd. 9 |
||||||
KT MOS Bukbu Co., Ltd and others |
||||||
Total |
₩ |
1 |
The recoverable amounts of mobile services business are calculated based on value-in use calculations. These calculations use discounted cash flow projections for the next five years based on financial budgets. A terminal growth rate of |
2 | value-in use calculations. These calculations use discounted cash flow projections for the next five years based on financial budgets. A terminal growth rate of |
rate of the industry which the cash-generating unit belongs in. The Group estimated its revenue growth rate - |
3 | The recoverable amounts of HCN Co., Ltd. are calculated based on value-in use calculations. These calculations use discounted cash flow projections for the next four years based on financial budgets. A terminal growth rate of four years. This growth rate does not exceed the average growth rate of the industry which the cash-generating unit belongs in. The Group estimated its revenue growth rate |
4 | The recoverable amount of GENIE Music Corporation is calculated based on fair value less cost to sell. |
5 | The recoverable amounts of BOOK CLU MILLIE are calculated based on B value-in use calculations. These calculations use discounted cash flow projections for the next four years based on financial budgets. A terminal growth rate of four years. This growth rate does not exceed the average growth rate of the industry which the cash-generating unit belongs in. The Group estimated its revenue growth rate |
6 | The recoverable amount of PlayD Co., Ltd. is calculated based on fair value less cost to sell. |
7 |
value-in use calculations. These calculations use discounted cash flow projections for the next five years based on financial budgets. A terminal growth rate of |
8 |
The recoverable amounts of Epsilon Global Communications Pte. Ltd. are calculated based on value-in use calculations. These calculations use discounted cash flow projections for the next nine years based on financial budgets. A terminal growth rate of |
9 |
The recoverable amounts of MEDIA GENIE Co., Ltd. are calculated based on value-in use calculations. These calculations use discounted cash flow projections for the next five years based on financial budgets. A terminal growth rate of |
10 |
The Group performed its impairment assessment for long-lived assets attributed to the Information and Communication Technology (“ICT”) reporting segment, which includes the Cash-Generating Units of Mobile, Fixed line, and Corporate Services (the “CGUs”). The Group compared the carrying value of each CGU to the estimated recoverable amount. The recoverable amounts of ICT reporting segment are calculated based on value-in use calculations. These calculations use discounted cash flow projections for the next five years based on financial budgets. A terminal growth rate of sed on past performance and its expectation of future market changes. In addition, management estimated the cash flow based on past performance and its expectation of market growth, and the discount rate %. Accordingly, the Group did t recognize an impairment loss on ICT reporting segment for the years ended December 31, 2019, 2020 and 2021. |
14. |
Investments in Associates and Joint Ventures |
Percentage of ownership (%) |
Location |
Closing month |
||||||||||||||
December 31, 2020 |
December 31, 2021 |
|||||||||||||||
Korea Information & Technology Fund |
% | % | ||||||||||||||
KT-IBKC Future Investment Fund 1 1 |
% | % | ||||||||||||||
K Bank |
% | % | ||||||||||||||
Hyundai Robotics Co., Ltd. 2 |
% | % | ||||||||||||||
K-REALTY CR REITs No.1 |
% | % |
1 | At the end of the reporting period, although the Group owns 50% ownership, the equity method of accounting has been applied as the Group, which is a limited partner of the investment fund, because the Group cannot participate in determining the operating and financial policies. |
2 | At the end of the reporting period, although the Group has less than 20% ownership in ordinary share, this entity is included in investments in associates as the Group has a significant influence in determining the operating and financial policies. |
2020 |
||||||||||||||||||||
(In millions of Korean won) |
Beginning |
Acquisition (Disposal) |
Share of net profit from associates and joint ventures 1 |
Others |
Ending |
|||||||||||||||
Korea Information & Technology Fund |
₩ |
|
₩ |
— | ₩ |
|
₩ |
( |
) | ₩ |
|
|||||||||
KT-IBKC Future Investment Fund 1 |
— | — | ||||||||||||||||||
KT-CKP New Media Investment Fund |
( |
) | — | — | — | |||||||||||||||
K Bank |
( |
) | ( |
) | ||||||||||||||||
Hyundai Robotics Co., Ltd. |
— | ( |
) | |||||||||||||||||
Others 1 |
||||||||||||||||||||
₩ |
|
₩ |
|
₩ |
|
₩ |
( |
) | ₩ |
|
||||||||||
2021 |
||||||||||||||||||||
(In millions of Korean won) |
Beginning |
Acquisition (Disposal) |
Share of net profit from associates and joint ventures 1 |
Others 2 |
Ending |
|||||||||||||||
Korea Information & Technology Fund |
₩ |
|
₩ |
— | ₩ |
|
₩ |
( |
) | ₩ |
|
|||||||||
KT-IBKC Future Investment Fund 1 |
( |
) | — | |||||||||||||||||
K Bank 2 |
||||||||||||||||||||
Hyundai Robotics Co., Ltd. |
( |
) | ||||||||||||||||||
K-REALTY CR REITs No.1 |
— | ( |
) | |||||||||||||||||
Others 1 |
( |
) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
₩ |
|
₩ |
|
₩ |
|
₩ |
|
₩ |
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
1 | KT investment Co., Ltd., a subsidiary of the Group, recognized its share in net profit from associates and joint ventures as operating revenue and expense. These include its share in net gain from associates and joint ventures of ₩ ₩ ₩ |
2 | The amount includes the amount increased as derivatives liabilities were borne by shareholders’ agreements between financial investors participating in the paid-in capital increase of K Bank during the current period (Note 7). |
(In millions of Korean won) |
December 31, 2020 |
|||||||||||||||
Current assets |
Non-current assets |
Current liabilities |
Non-current liabilities |
|||||||||||||
Korea Information & Technology Fund |
₩ |
₩ |
₩ |
— | ₩ |
— | ||||||||||
KT-IBKC Future Investment Fund 1 |
— | — | — | |||||||||||||
K Bank |
||||||||||||||||
Hyundai Robotics Co., Ltd. |
(In millions of Korean won) |
December 31, 2021 |
|||||||||||||||
Current assets |
Non-current assets |
Current liabilities |
Non-current liabilities |
|||||||||||||
Korea Information & Technology Fund |
₩ |
₩ |
₩ |
— | ₩ |
— | ||||||||||
KT-IBKC Future Investment Fund 1 |
— | — | — | |||||||||||||
K Bank |
||||||||||||||||
Hyundai Robotics Co., Ltd. |
||||||||||||||||
K-REALTY CR REITs No.1 |
— | — | — |
(In millions of Korean won) |
2020 |
|||||||||||||||||||
Operating revenue |
Profit (loss) for the year |
Other comprehensive income(loss) |
Total comprehensive income(loss) |
Dividends received from associates |
||||||||||||||||
Korea Information & Technology Fund |
₩ |
₩ |
₩ |
₩ |
₩ |
|||||||||||||||
KT-IBKC Future Investment Fund 1 |
— | — | ||||||||||||||||||
K Bank |
( |
) | ( |
) | ( |
) | — | |||||||||||||
Hyundai Robotics Co., Ltd. |
( |
) | — |
(In millions of Korean won) |
2021 |
|||||||||||||||||||
Operating revenue |
Profit (loss) for the year |
Other comprehensive income(loss) |
Total comprehensive income(loss) |
Dividends received from associates |
||||||||||||||||
Korea Information & Technology Fund |
₩ |
₩ |
₩ |
( |
) | ₩ |
₩ |
|||||||||||||
KT-IBKC Future Investment Fund 1 |
— | — | ||||||||||||||||||
K Bank |
( |
) | ( |
) | — | |||||||||||||||
Hyundai Robotics Co., Ltd. |
( |
) | ( |
) | — | |||||||||||||||
K-REALTY CR REITs No.1 |
— |
(In millions of Korean won) |
December 31, 2020 |
|||||||||||||||||||
Net assets (a) |
Percentage of ownership (b) |
Share in net assets (c)=(a)x(b) |
Intercompany transaction and others (d) |
Book amount (c)+(d) |
||||||||||||||||
Korea Information & Technology Fund |
₩ |
|
% | ₩ |
₩ |
— | ₩ |
|||||||||||||
KT-IBKC Future Investment Fund 1 |
% | — | ||||||||||||||||||
K Bank |
|
% | ||||||||||||||||||
Hyundai Robotics Co., Ltd. |
% |
(In millions of Korean won) |
December 31, 2021 |
|||||||||||||||||||
Net assets (a) |
Percentage of ownership (b) |
Share in net assets (c)=(a)x(b) |
Intercompany transaction and others (d) |
Book amount (c)+(d) |
||||||||||||||||
Korea Information & Technology Fund |
₩ |
% | ₩ |
₩ |
— | ₩ |
||||||||||||||
KT-IBKC Future Investment Fund 1 |
% | — | ||||||||||||||||||
K Bank |
% | |||||||||||||||||||
Hyundai Robotics Co., Ltd. |
% | |||||||||||||||||||
K-REALTY CR REITs No.1 |
% |
15. |
Trade and Other Payables |
(In millions of Korean won) |
December 31, 2020 |
December 31, 2021 |
||||||
Current liabilities |
||||||||
Trade payables |
₩ |
₩ |
||||||
Other payables |
||||||||
|
|
|
|
|||||
Total |
₩ |
₩ |
||||||
|
|
|
|
|||||
Non-current liabilities |
||||||||
Trade payables |
₩ |
₩ |
— | |||||
Other payables |
||||||||
|
|
|
|
|||||
Total |
₩ |
₩ |
||||||
|
|
|
|
(In millions of Korean won) |
December 31, 2020 |
December 31, 2021 |
||||||
Non-trade payables1 |
₩ |
₩ |
||||||
Accrued expenses |
||||||||
Operating deposits |
||||||||
Others |
||||||||
Less: non-current |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Current |
₩ |
₩ |
||||||
|
|
|
|
1 | Settlement payables of BC Card Co., Ltd., a subsidiary of the Group, of ₩ ₩ |
16. |
Borrowings |
(In millions of Korean won and thousands of foreign currencies) |
December 31, 2020 |
December 31, 2021 |
||||||||||||||||||||
Type |
Maturity |
Annual interest rates |
Foreign currency |
Korean won |
Foreign currency |
Korean won |
||||||||||||||||
MTNP notes 1 |
USD |
₩ |
USD |
₩ |
||||||||||||||||||
MTNP notes |
USD |
USD |
||||||||||||||||||||
MTNP notes |
USD |
USD |
||||||||||||||||||||
FR notes 2 |
USD |
USD |
||||||||||||||||||||
MTNP notes |
— | JPY |
— | — | ||||||||||||||||||
MTNP notes |
JPY |
JPY |
||||||||||||||||||||
MTNP notes |
JPY |
JPY |
||||||||||||||||||||
MTNP notes |
USD |
USD |
||||||||||||||||||||
FR notes 2 |
USD |
USD |
||||||||||||||||||||
FR notes 2 |
SGD |
SGD |
||||||||||||||||||||
MTNP notes |
— | — | USD |
|||||||||||||||||||
The 180-2nd Public bond |
— | — | — | — | ||||||||||||||||||
The 181-3rd Public bond |
— | — | — | — | ||||||||||||||||||
The 182-2nd Public bond |
— | — | — | — | ||||||||||||||||||
The 183-2nd Public bond |
— | — | — | — | ||||||||||||||||||
The 183-3rd Public bond |
— | — | ||||||||||||||||||||
The 184-2nd Public bond |
— | — | ||||||||||||||||||||
The 184-3rd Public bond |
— | — | ||||||||||||||||||||
The 186-3rd Public bond |
— | — | ||||||||||||||||||||
The 186-4th Public bond |
— | — | ||||||||||||||||||||
The 187-3rd Public bond |
— | — | ||||||||||||||||||||
The 187-4th Public bond |
— | — | ||||||||||||||||||||
The 188-2nd Public bond |
— | — | |
|||||||||||||||||||
The 188-3rd Public bond |
— | — | ||||||||||||||||||||
The 189-2nd Public bond |
— | — | — | — | ||||||||||||||||||
The 189-3rd Public bond |
— | — | ||||||||||||||||||||
The 189-4rd Public bond |
— | — | ||||||||||||||||||||
The 190-1st Public bond |
— | — | — | — | ||||||||||||||||||
The 190-2nd Public bond |
— | — | ||||||||||||||||||||
The 190-3rd Public bond |
— | — | ||||||||||||||||||||
The 190-4th Public bond |
— | — | ||||||||||||||||||||
The 191-1st Public bond |
— | |
— | |||||||||||||||||||
The 191-2nd Public bond |
— | — | ||||||||||||||||||||
The 191-3rd Public bond |
— | — | ||||||||||||||||||||
The 191-4th Public bond |
— | — | ||||||||||||||||||||
The 192-1st Public bond |
— | — | ||||||||||||||||||||
The 192-2nd Public bond |
— | — | ||||||||||||||||||||
The 192-3rd Public bond |
— | — | ||||||||||||||||||||
The 192-4th Public bond |
— | — | ||||||||||||||||||||
The 193-1st Public bond |
— | — | ||||||||||||||||||||
The 193-2nd Public bond |
— | — | ||||||||||||||||||||
The 193-3rd Public bond |
— | — | ||||||||||||||||||||
The 193-4th Public bond |
— | — | ||||||||||||||||||||
The 194-1st Public bond |
— | — | — | |||||||||||||||||||
The 194-2nd Public bond |
— | — | — | |||||||||||||||||||
The 194-3rd Public bond |
— | — | — | |||||||||||||||||||
The 194-4th Public bond |
— | — | — |
(In millions of Korean won and thousands of foreign currencies) |
December 31, 2020 |
December 31, 2021 |
||||||||||||||||||||
Type |
Maturity |
Annual interest rates |
Foreign currency |
Korean won |
Foreign currency |
Korean won |
||||||||||||||||
The 195-1st Public bond |
— | ₩ |
— | — | ₩ |
|||||||||||||||||
The 195-2nd Public bond |
— | — | — | |||||||||||||||||||
The 195-3rd Public bond |
— | — | — | |||||||||||||||||||
The 18-1st Won-denominated unsecured bond |
— | — | — | |||||||||||||||||||
The 18-2nd Won-denominated unsecured bond |
— | — | — | |||||||||||||||||||
The 148th Won-denominated unsecured bond |
— | — | ||||||||||||||||||||
The 149-1st Won-denominated unsecured bond |
— | — | — | |||||||||||||||||||
The 149-2nd Won-denominated unsecured bond |
— | — | — | |||||||||||||||||||
The 150-1st Won-denominated unsecured bond |
— | — | — | |||||||||||||||||||
The 150-2nd Won-denominated unsecured bond |
— | — | — | |||||||||||||||||||
The 151-1st Won-denominated unsecured bond |
— | — | — | |||||||||||||||||||
The 151-2nd Won-denominated unsecured bond |
— | — | — | |||||||||||||||||||
The 152-1st Won-denominated unsecured bond |
— | — | — | |||||||||||||||||||
The 152-2nd Won-denominated unsecured bond |
— | — | — | |||||||||||||||||||
The 153-1st Won-denominated unsecured bond |
— | — | — | |||||||||||||||||||
The 153-2nd Won-denominated unsecured bond |
— | — | — | |||||||||||||||||||
The 154th Won-denominated unsecured bond |
— | — | — | |||||||||||||||||||
|
|
|
|
|||||||||||||||||||
Subtotal |
||||||||||||||||||||||
Less: Current portion |
( |
) | ( |
) | ||||||||||||||||||
Discount on bonds |
( |
) | ( |
) | ||||||||||||||||||
|
|
|
|
|||||||||||||||||||
Total |
₩ |
₩ |
||||||||||||||||||||
|
|
|
|
1 | As at December 31, 2021, the Group has outstanding notes in the amount of USD 2,000 million with fixed interest rates under Medium Term Note Program (“MTNP”) registered in the Singapore Stock Exchange, which allowed issuance of notes of up to USD 100 million. However, the MTNP has been terminated since 2007. |
2 | The Libor (3M) and SOR (6M) is approximately |
(In millions of Korean won and thousands of foreign currencies) |
||||||||||||||||||||
Type |
Issuance date |
Maturity |
Annual interest rate |
December 31, 2020 |
December 31, 2021 |
|||||||||||||||
The 1st CB(Private) 1,2 |
Jun. 5, 2020 | % | ₩ |
₩ |
||||||||||||||||
Redemption premium |
||||||||||||||||||||
Bond discount issuance |
( |
) | ( |
) | ||||||||||||||||
|
|
|
|
|||||||||||||||||
Subtotal |
₩ |
₩ |
||||||||||||||||||
|
|
|
|
|||||||||||||||||
Current portion |
₩ |
— | ₩ |
— | ||||||||||||||||
|
|
|
|
|||||||||||||||||
Total |
₩ |
₩ |
||||||||||||||||||
|
|
|
|
1 | Common shares of Storywiz Co., Ltd. are subject to conversio n |
2 | Nominal interest rate and maturity yield is approximately |
( I n millions of Korean won) |
||||||||||||||
Type |
Transition period |
Repayment period |
Dividend |
December 31, 2020 |
December 31, 2021 |
|||||||||
Redeemable convertible preferred stock 1 |
the day after the first issue |
have elapsed from the date of issuance to the expiration date of the preferred residence period |
equivalent to the par value (accumulated) |
₩ |
₩ |
1 | The redeemable convertible preferred stock was issued in BOOK CLUB MILLIE, and the part acquired by GENIE Music Corporation was excluded. Redeemable convertible preferred stock are measured according to the effective interest rate at the time of issuance, and the conversion ratio is one subsidiary stock per preferred stock (adjusted based on the issuance price under certain conditions). The repayment value is the amount obtained by subtracting the base payment dividend from the total amount of interest calculated by applying |
(In millions of Korean won) |
December 31, 2020 |
December 31, 2021 |
||||||||||
Type |
Financial institution |
Annual interest rates | ||||||||||
Operational |
NongHyup Bank | — | ₩ |
₩ |
— | |||||||
Shinhan Bank | ||||||||||||
Shinhan Bank | — | — | ||||||||||
Woori Bank | — | — | ||||||||||
Woori Bank 1 |
— |
|||||||||||
Korea Development Bank | ||||||||||||
Industrial Bank of Korea | ||||||||||||
Hana Bank | ||||||||||||
KB SECURITIES | — |
|||||||||||
Shinhan Investment | — |
|||||||||||
KIWOOM Securities | — |
|||||||||||
NH INVESTMENT & SECURITIES | — |
|||||||||||
Korea Investment & Securities | — |
|||||||||||
HSBC | — |
|||||||||||
|
|
|
|
|||||||||
Total | ₩ |
₩ |
||||||||||
|
|
|
|
1 | The KORIBOR (3M) is approximately |
( I n millions of Korean won and thousands of foreign currencies) |
December 31, 2020 |
December 31, 2021 |
||||||||||||||||||
Financial institution |
Type |
Annual interest rates |
Foreign currency |
Korean won |
Foreign currency |
Korean won |
||||||||||||||
Export-Import Bank of Korea | Inter-Korean Cooperation Fund 1 |
— | ₩ |
— | ₩ |
|||||||||||||||
CA-CIB |
Long-term CP | — | — | |||||||||||||||||
Shinhan Bank |
Facility loans 2 |
USD |
USD |
|||||||||||||||||
General loans 2 |
USD |
USD |
||||||||||||||||||
General loans 2 |
USD |
USD |
||||||||||||||||||
General loans 2 |
— | — | USD |
|||||||||||||||||
General loans | — | — | USD |
|||||||||||||||||
General loans | — | — | — | |||||||||||||||||
Industrial Bank of Korea |
General loans |
— | — | — | ||||||||||||||||
NongHyup Bank |
Facility loans | — | — | — | ||||||||||||||||
PF loans | — | — | — | |||||||||||||||||
Woori Bank |
General loans 2 |
— | — | EUR |
||||||||||||||||
General loans | — | — | — | |||||||||||||||||
PF loans | — | — | — | |||||||||||||||||
CP | — | — | — | |||||||||||||||||
Korea Development Bank |
General loans | — | — | — | ||||||||||||||||
General loans | — | — | — | |||||||||||||||||
General loans | — | — | — | |||||||||||||||||
Kyobo Life Insurance |
PF loans | — | — | — |
( I n millions of Korean won and thousands of foreign currencies) |
December 31, 2020 |
December 31, 2021 |
||||||||||||||||||||
Financial institution |
Type |
Annual interest rates |
Foreign currency |
Korean won |
Foreign currency |
Korean won |
||||||||||||||||
Standard Chartered First Bank Korea | PF loans | — | ₩ |
— | — | ₩ |
||||||||||||||||
Samsung Life Insurance |
PF loans | — | — | — | ||||||||||||||||||
Kookmin Bank and others 2 |
Facility loans 2 |
USD |
USD |
|||||||||||||||||||
|
|
|
|
|||||||||||||||||||
Subtotal |
||||||||||||||||||||||
Less: Current portion |
( |
) | ( |
) | ||||||||||||||||||
|
|
|
|
|||||||||||||||||||
₩ |
₩ |
|||||||||||||||||||||
|
|
|
|
1 | |
2 | LIBOR (3M) and EURIBOR (3M) are approximately - |
( I |
||||||||||||||||||||||||||||
Bonds |
Borrowings |
Total |
||||||||||||||||||||||||||
In local currency |
In foreign currency |
Sub- total |
In local currency |
In foreign currency |
Sub- total |
|||||||||||||||||||||||
Jan. 1, 2022 ~ Dec. 31, 2022 |
₩ |
₩ |
₩ |
₩ |
₩ |
₩ |
₩ |
|||||||||||||||||||||
Jan. 1, 2023 ~ Dec. 31, 2023 |
||||||||||||||||||||||||||||
Jan. 1, 2024 ~ Dec. 31, 2024 |
||||||||||||||||||||||||||||
Jan. 1, 2025 ~ Dec. 31, 2025 |
— | |||||||||||||||||||||||||||
After Jan. 1, 2026 |
||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total |
₩ |
₩ |
₩ |
₩ |
₩ |
₩ |
₩ |
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
17. |
Provisions |
2020 |
||||||||||||||||
(In millions of Korean won) |
Litigation |
Restoration cost |
Others |
Total |
||||||||||||
Beginning balance |
₩ |
₩ |
₩ |
₩ |
||||||||||||
Increase (Transfer) |
( |
) | ||||||||||||||
Usage |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Reversal |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Changes in scope of consolidation |
— | |||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Ending balance |
₩ |
₩ |
₩ |
₩ |
||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Current |
₩ |
₩ |
₩ |
₩ |
||||||||||||
Non-current |
— |
2021 |
||||||||||||||||
(In millions of Korean won) |
Litigation |
Restoration cost |
Others |
Total |
||||||||||||
Beginning balance |
₩ |
₩ |
₩ |
₩ |
||||||||||||
Increase (Transfer) |
||||||||||||||||
Usage |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Reversal |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Changes in scope of consolidation |
— | |||||||||||||||
Others |
— | — | ||||||||||||||
Ending balance |
₩ |
₩ |
₩ |
₩ |
||||||||||||
Current |
₩ |
₩ |
₩ |
₩ |
||||||||||||
Non-current |
18. |
Net Defined Benefit Liabilities |
(In millions of Korean won) |
December 31, 2020 |
December 31, 2021 |
||||||
Present value of defined benefit obligations |
₩ |
₩ |
||||||
Fair value of plan assets |
( |
) | ( |
) | ||||
Liabilities in the statement of financial position |
₩ |
₩ |
||||||
Assets in the statement of financial position |
₩ |
₩ |
||||||
(In millions of Korean won) |
2020 |
2021 |
||||||
Beginning |
₩ |
₩ |
||||||
Current service cost |
||||||||
Interest expense |
||||||||
Benefit paid |
( |
) | ( |
) | ||||
Changes due to settlements of plan & Past Service Cost |
( |
) | ||||||
Remeasurements: |
||||||||
Actuarial gains and losses arising from changes in demographic assumptions |
( |
) | ||||||
Actuarial gains and losses arising from changes in financial assumptions |
( |
) | ||||||
Actuarial gains and losses arising from experience adjustments |
( |
) | ||||||
Changes in scope of consolidation |
||||||||
Ending |
₩ |
₩ |
||||||
(In millions of Korean won) |
2020 |
2021 |
||||||
Beginning |
₩ |
₩ |
||||||
Interest income |
||||||||
Remeasurements: |
||||||||
Return on plan assets (excluding amounts included in interest income) |
( |
) | ||||||
Benefits paid |
( |
) | ( |
) | ||||
Employer contributions |
||||||||
Changes in scope of consolidation |
||||||||
Ending |
₩ |
₩ |
||||||
(In millions of Korean won) |
2019 |
2020 |
2021 |
|||||||||
Current service cost |
₩ |
|
₩ |
|
₩ |
|
||||||
Net Interest cost |
||||||||||||
Changes due to settlements of plan & Past Service Cost |
( |
) | ||||||||||
Transfer out |
( |
) | ( |
) | ( |
) | ||||||
Total expenses |
₩ |
₩ |
₩ |
|||||||||
December 31, 2019 |
December 31, 2020 |
December 31, 2021 |
||||||||||
Discount rate |
|
|
||||||||||
Future salary increase |
|
|
|
(In percentage, in millions of Korean won) |
Effect on defined benefit obligation |
|||||||||
Changes in assumption |
Increase in assumption |
Decrease in assumption |
||||||||
Discount rate |
₩ ( |
₩ |
|
|||||||
Salary growth rate |
( |
) |
(In millions of Korean won) |
Less than 1 year |
Between 1-2 years |
Between 2-5 years |
Over 5 years |
Total |
|||||||||||||||
Pension benefits |
₩ |
₩ |
₩ |
₩ |
₩ |
19. |
Defined Contribution Plan |
20. |
Commitments and Contingencies |
(In millions of Korean won and thousands of foreign currencies) |
Financial institution |
Currency |
Limit |
Used amount |
||||||||
Bank overdraft |
Kookmin Bank and others | KRW | ||||||||||
Inter-Korean Cooperation Fund |
Export-Import Bank of Korea | KRW | ||||||||||
Insurance for Economic Cooperation project |
Export-Import Bank of Korea | KRW | ||||||||||
Collateralized loan on electronic accounts receivable-trade |
Kookmin Bank and others | KRW | ||||||||||
Plus electronic notes payable |
Industrial Bank of Korea | KRW | ||||||||||
Loans for working capital |
Korea Development Bank and others | KRW | ||||||||||
Shinhan Bank | USD | |||||||||||
Woori Bank | EUR | |||||||||||
Facility loans |
Shinhan Bank and others | KRW | ||||||||||
Kookmin Bank and others | USD | |||||||||||
Derivatives transaction limit |
Korea Development Bank | KRW | ||||||||||
Woori Bank and others | USD | |||||||||||
|
|
|
|
|||||||||
Total |
KRW | |||||||||||
USD | ||||||||||||
EUR | ||||||||||||
|
|
|
|
(In millions of Korean won and thousands of foreign currencies) |
Financial institution |
Currency |
Limit |
|||||||
Performance guarantee |
Seoul Guarantee Insurance and others |
KRW | ||||||||
Hana Bank | USD | |||||||||
Guarantee for payment in foreign currency |
Kookmin Bank and others | USD | ||||||||
Guarantee for payment in Korean currency |
Shinhan Bank and others | KRW | ||||||||
Refund guarantee for advances received |
Korea Development Bank | USD | ||||||||
Comprehensive credit line |
Hana Bank and others | KRW | ||||||||
USD | ||||||||||
Guarantees for depositions |
HSBC | USD | ||||||||
Bid guarantee |
Hana Bank | USD | ||||||||
Bid guarantee |
Korea Software Financial Cooperative and others | KRW | ||||||||
Performance guarantee / warranty guarantee |
KRW | |||||||||
Guarantee for advance payments/others |
KRW | |||||||||
Construction fund guarantee insurance and others |
Seoul Guarantee Insurance | KRW | ||||||||
|
|
|||||||||
Total |
KRW | |||||||||
USD | ||||||||||
|
|
(In millions of Korean won) |
Subject to payment guarantees |
Creditor |
Limit |
Used amount |
Period |
|||||||||||
KT Engineering Co., Ltd. (KT ENGCORE Co., Ltd.) |
Shinhan Bank | ₩ |
₩ |
~ |
||||||||||||
KT Engineering Co., Ltd. (KT ENGCORE Co., Ltd.) |
Suhyup Bank | ~ |
| |||||||||||||
KT Engineering Co., Ltd. (KT ENGCORE Co., Ltd.) |
Suhyup Bank | ~ |
||||||||||||||
KT Engineering Co., Ltd. (KT ENGCORE Co., Ltd.) |
l Association Corporation |
Suhyup Bank | ~ |
|||||||||||||
KT Alpha Co., Ltd. (KT Hitel Co., Ltd.) |
Cash payers | ~ |
| |||||||||||||
KT Alpha Co., Ltd. (KT Hitel Co., Ltd.) |
NongHyup Agribusiness Group Inc and others |
~ |
| |||||||||||||
KT Alpha Co., Ltd. (KT Hitel Co., Ltd.) |
Emart Co., Ltd and others |
~ |
| |||||||||||||
Nasmedia Co., Ltd. |
Association Members |
Korea Securities Finance Corp |
— |
( I n millions of Korean won) |
Commitment (limit) amount |
Amount provided as collateral for beneficiary rights |
||||||||||||
Collateral assets |
Placing |
Trust collateral beneficiary | ||||||||||||
Real Estate Collateral Trust 1 |
1st place | NH Jayang Inc. | ₩ |
₩ |
||||||||||
Kyobo Life Insurance | ||||||||||||||
Standard Chartered Bank Korea Limited |
||||||||||||||
Samsung Life Insurance | ||||||||||||||
2nd place | Industrial Bank of Korea | |||||||||||||
Korea Investment Capital | ||||||||||||||
BNK Capital | ||||||||||||||
Standard Chartered Bank Korea Limited |
||||||||||||||
NH Capital | ||||||||||||||
3rd place | 2 |
LOTTE Engineering & Construction |
1 | The Group provides a certificate of beneficiary rights for land classified as investment properties and inventory assets as collateral in connection with the above real estate collateral trust. |
2 | The Group provides LOTTE Engineering & Construction with a certificate of third-priority beneficiary rights as collateral in relation to the construction contract amount of ₩ |
21. |
Leases |
(i) | Amounts recognized in the consolidated statement of financial position |
(In millions of Korean won) |
December 31, 2020 |
December 31, 2021 |
||||||
Right-of-use |
||||||||
Property and building |
₩ |
₩ |
||||||
Machinery and telecommunication line facilities |
||||||||
Others |
||||||||
|
|
|
|
|||||
Total |
₩ |
₩ |
||||||
|
|
|
|
|||||
Investment property (buildings) |
||||||||
(In millions of Korean won) |
December 31, 2020 |
December 31, 2021 |
||||||
Lease liabilities 1 |
||||||||
Current |
₩ |
₩ |
||||||
Non-Current |
||||||||
|
|
|
|
|||||
Total |
₩ |
₩ |
||||||
|
|
|
|
1 | Included in the line items ‘Other current liabilities and other non-current liabilities’ in the consolidated statement of financial position (Notes 9). |
(ii) | Amounts recognized in the consolidated statements of profit or loss |
(In millions of Korean won) |
December 31, 2019 |
December 31, 2020 |
December 31, 2021 |
|||||||||
Depreciation of Right-of-use |
||||||||||||
Property and building |
₩ |
|
|
|
₩ |
₩ |
||||||
Machinery and telecommunication line facilities |
|
|
|
|
||||||||
Others |
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|||||
Total |
₩ |
|
|
|
₩ |
₩ |
||||||
|
|
|
|
|
|
|||||||
Depreciation of Investment Properties |
₩ |
|
|
|
₩ |
₩ |
||||||
Interest expense relating to lease liabilities |
|
|
|
|
||||||||
Expense relating to short-term leases |
|
|
|
|
||||||||
Expense relating to leases of low-value assets that are not short-term leases |
|
|
|
|
||||||||
Expense relating to variable lease payments not included in lease liabilities |
|
|
|
|
22. |
Share Capital |
December 31, 2020 |
December 31, 2021 |
|||||||||||||||||||||||
Number of issued shares |
Par value per share (Korean won) |
Ordinary Shares ( I Korean won) |
Number of issued shares |
Par value per share (Korean won) |
Ordinary Shares ( I Korean won) |
|||||||||||||||||||
Ordinary shares 1 |
₩ |
₩ |
₩ |
₩ |
1 | The Group retired |
23. |
Retained Earnings |
(In millions of Korean won) |
December 31, 2020 |
December 31, 2021 |
||||||
Legal reserve 1 |
₩ |
₩ |
||||||
Voluntary reserves 2 |
||||||||
Unappropriated retained earnings |
||||||||
|
|
|
|
|||||
Total |
₩ |
₩ |
||||||
|
|
|
|
1 | The Commercial Code of the Republic of Korea requires the Controlling Company to appropriate, as a legal reserve, an amount equal to a minimum of |
2 | The provision of research and development of human resources is separately accumulated with tax reserve fund during earned surplus disposal by Tax Reduction and Exemption Control Act of Korea. Reversal of this provision can be paid out as dividends according to related tax law. |
24. |
Accumulated Other Comprehensive Income and Other Components of Equity |
(In millions of Korean won) |
December 31, 2020 |
December 31, 2021 |
||||||
Changes in investments in associates and joint ventures |
₩ |
₩ |
( |
) | ||||
Gain or loss on derivatives valuation |
||||||||
Gain on valuation of financial assets at fair value through other comprehensive income |
||||||||
Exchange differences on translation for foreign operations |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Total |
₩ |
|
₩ |
|
||||
|
|
|
|
2020 |
||||||||||||||||
(In millions of Korean won) |
Beginning |
Increase/ decrease |
Reclassification to gain or loss |
Ending |
||||||||||||
Changes in investments in associates and joint ventures |
₩ |
₩ |
₩ |
— | ₩ |
|||||||||||
Gain or loss on derivatives valuation |
( |
) | ( |
) | ||||||||||||
Gain on valuation of financial assets at fair value through other comprehensive income |
( |
) | — | |||||||||||||
Exchange differences on translation for foreign operations |
( |
) | ( |
) | — | ( |
) | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
₩ |
₩ |
( |
) | ₩ |
₩ |
||||||||||
|
|
|
|
|
|
|
|
2021 |
||||||||||||||||
( I n millions of Korean won) |
Beginning |
Increase/ decrease |
Reclassification to gain or loss |
Ending |
||||||||||||
Changes in investments in associates and joint ventures |
₩ |
₩ |
( |
) | ₩ |
— | ₩ |
( |
) | |||||||
Gain or loss on derivatives valuation |
( |
) | ||||||||||||||
Gain on valuation of financial assets at fair value through other comprehensive income |
— | |||||||||||||||
Exchange differences on translation for foreign operations |
( |
) | ( |
) | — | ( |
) | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
₩ |
₩ |
₩ |
( |
) | ₩ |
||||||||||
|
|
|
|
|
|
|
|
(In millions of Korean won) |
December 31, 2020 |
December 31, 2021 |
||||||
Treasury stock 1 |
₩ |
( |
) | ₩ |
( |
) | ||
Gain or loss on disposal of treasury stock 2 |
( |
) | ( |
) | ||||
Share-based payments |
||||||||
Others 3 |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Total |
₩ |
( |
) | ₩ |
( |
) | ||
|
|
|
|
1 |
During the year ended December 31, 2021, the Group acquired |
2 |
The tax impact amount directly reflected in equity is ₩ ₩ |
3 |
Profit or loss incurred from transactions with non-controlling interest and investment difference incurred from change in proportion of subsidiaries are included. |
December 31, 2020 |
December 31, 2021 |
|||||||
Number of shares (in shares) |
||||||||
Amounts ( i n millions of Korean won) |
₩ |
₩ |
25. |
Share-based Payments |
2020 | ||
(In share) |
14th grant | |
Grant date |
June 16, 2020 | |
Grantee |
CEOs, internal directors, external directors, executives | |
Vesting conditions |
Service condition: 1 year Non-market performance condition: achievement of performance | |
Fair value per option (in Korean won) |
₩ | |
Total compensation costs (in Korean won) |
₩ | |
Estimated exercise date (exercise date) |
July 14, 2021 | |
Valuation method |
Fair value method | |
(In share) |
Employee wage negotiation | |
Grant date |
September 21, 2020 | |
Grantee |
All employees | |
Vesting conditions |
Current employees as of September 21, 2020 | |
Fair value per option (in Korean won) |
₩ | |
Total compensation costs (in Korean won) |
₩ | |
Estimated exercise date (exercise date) |
December 22, 2020 | |
Valuation method |
Fair value method | |
2021 | ||
(In share) |
15th grant | |
Grant date |
June 17, 2021 | |
Grantee |
CEOs, internal directors, external directors, executives | |
Vesting conditions |
Service condition: 1 year Non-market performance condition: achievement of performance | |
Fair value per option (in Korean won) |
₩ | |
Total compensation costs (in Korean won) |
₩ | |
Estimated exercise date (exercise date) |
During 2022 | |
Valuation method |
Fair value method |
(In share) |
Employee wage negotiation | |
Grant date |
September 6, 2021 | |
Grantee |
All employees | |
Vesting conditions |
Current employees as of September 6, 2021 | |
Fair value per option (in Korean won) |
₩ | |
Total compensation costs (in Korean won) |
₩ | |
Estimated exercise date (exercise date) |
December 10, 2021 | |
Valuation method |
Fair value method |
( I n share) |
2020 |
|||||||||||||||||||||||
Beginning |
Grant |
Expired |
Exercised 1 |
Ending |
Number of shares exercisable |
|||||||||||||||||||
13th grant |
( |
) | ( |
) | — | |||||||||||||||||||
14th grant |
— | — | — | — | ||||||||||||||||||||
Employee wage negotiation |
— | — | ( |
) | — | — | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
( |
) | ( |
) | — | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
(In share) |
2021 |
|||||||||||||||||||||||
Beginning |
Grant |
Expired |
Exercised 1 |
Ending |
Number of shares exercisable |
|||||||||||||||||||
14th grant |
( |
) | ( |
) | — | |||||||||||||||||||
15th grant |
— | — | — | — | ||||||||||||||||||||
Employee wage negotiation |
— | — | ( |
) | — | — | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
( |
) | ( |
) | — | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
1 | The weighted average price of ordinary shares at the time of exercise in 2021 was ₩ ₩ |
26. |
Revenue from Contracts with Customers and Relevant Contract Assets and Liabilities |
(In millions of Korean won) |
2019 |
2020 |
2021 |
|||||||||
Revenue from contracts with customers |
₩ |
₩ |
₩ |
|||||||||
Revenue from other sources |
||||||||||||
Other income (Note 27) |
||||||||||||
|
|
|
|
|
|
|||||||
Total revenue |
₩ |
₩ |
₩ |
|||||||||
|
|
|
|
|
|
(In millions of Korean won) |
2019 |
2020 |
2021 |
|||||||||
Mobile services |
₩ |
₩ |
₩ |
|||||||||
Fixed-line services |
||||||||||||
Fixed-line and VoIP telephone services |
||||||||||||
Broadband Internet access services |
||||||||||||
Data communication services |
||||||||||||
Media and content |
||||||||||||
Financial services |
||||||||||||
Sale of goods |
||||||||||||
Others |
||||||||||||
|
|
|
|
|
|
|||||||
Total |
₩ |
₩ |
₩ |
|||||||||
|
|
|
|
|
|
(In millions of Korean won) |
December 31, 2020 |
December 31, 2021 |
||||||
Contract assets 1 |
₩ |
₩ |
||||||
Contract liabilities 1 |
||||||||
Deferred revenue 2 |
₩ |
₩ |
1 |
The Group recognized contract assets of ₩ ₩ ₩ ₩ |
2 |
Deferred revenue recognized relating to government grant is excluded . |
(In millions of Korean won) |
2019 |
2020 |
2021 |
|||||||||
Incremental cost of contract establishment |
₩ |
₩ |
₩ |
|||||||||
Cost of Contract performance |
(In millions of Korean won) |
2019 |
2020 |
2021 |
|||||||||
Revenue recognized that was included in the contract liability balance at the beginning of the year |
||||||||||||
Allocation of the transaction price |
₩ |
₩ |
₩ |
|||||||||
Deferred revenue of joining/installment fee |
||||||||||||
Total |
₩ |
₩ |
₩ |
|||||||||
27. |
Other Income from Operating Revenue |
(In millions of Korean won) |
2019 |
2020 |
2021 |
|||||||||
Gains on disposal of property and equipment and investment properties |
₩ |
₩ |
₩ |
|||||||||
Gains on disposal of intangible assets |
||||||||||||
Gain on disposal of right-of-use assets |
||||||||||||
Compensation on property and equipment |
||||||||||||
Gains on government subsidies |
||||||||||||
Gain on disposal of investments in subsidiaries |
||||||||||||
Reversal of other allowance for bad debts |
||||||||||||
Others |
||||||||||||
Total |
₩ |
₩ |
₩ |
|||||||||
28. |
Operating Expenses |
(In millions of Korean won) |
2019 |
2020 |
2021 |
||||||||||
Salaries and wages |
₩ |
₩ |
₩ |
||||||||||
Depreciation |
|||||||||||||
Depreciation of right-of-use |
|||||||||||||
Amortization of intangible assets |
|||||||||||||
Commissions |
|||||||||||||
Interconnection charges |
|||||||||||||
International interconnection fee |
|||||||||||||
Purchase of inventories |
|||||||||||||
Changes of inventories |
|||||||||||||
Sales commission |
|||||||||||||
Service cost |
|||||||||||||
Utilities |
|||||||||||||
Taxes and dues |
|||||||||||||
Rent |
|||||||||||||
Insurance premium |
|||||||||||||
Installation fee |
|||||||||||||
Advertising expenses |
|||||||||||||
Research and development expenses |
|||||||||||||
Card service cost |
|||||||||||||
Loss on disposal of property and equipment |
|||||||||||||
Loss on disposal of intangible assets |
|||||||||||||
Loss on disposal of right-of-use assets |
|||||||||||||
Direct cost of government subsidies |
|||||||||||||
Loss on disposal of investments in subsidiaries |
|||||||||||||
Impairment loss on property and equipment |
|||||||||||||
Impairment loss on intangible assets |
|||||||||||||
Donations |
|||||||||||||
Other allowance for bad debts |
|||||||||||||
Others |
|||||||||||||
Total |
₩ |
₩ |
₩ |
||||||||||
(In millions of Korean won) |
2019 |
2020 |
2021 |
|||||||||
Short-term employee benefits |
₩ |
₩ |
₩ |
|||||||||
Post-employment benefits(Defined benefit plan) |
||||||||||||
Post-employment benefits(Defined contribution plan) |
||||||||||||
Share-based payment |
||||||||||||
Others |
||||||||||||
Total |
₩ |
₩ |
₩ |
|||||||||
2 9 . |
Financial Income and Costs |
(In millions of Korean won) |
2019 |
2020 |
2021 |
|||||||||
Interest income |
₩ |
₩ |
₩ |
|||||||||
Gain on foreign currency transactions |
||||||||||||
Gain on foreign currency translation |
||||||||||||
Gain on settlement of derivatives |
||||||||||||
Gain on valuation of derivatives |
||||||||||||
Gain on valuation of financial instruments |
||||||||||||
Others |
|
|||||||||||
|
|
|
|
|
|
|||||||
Total |
₩ |
₩ |
₩ |
|||||||||
|
|
|
|
|
|
(In millions of Korean won) |
2019 |
2020 |
2021 |
|||||||||
Interest expenses |
₩ |
₩ |
₩ |
|||||||||
Loss on foreign currency transactions |
||||||||||||
Loss on foreign currency translation |
||||||||||||
Loss on settlement of derivatives |
||||||||||||
Loss on valuation of derivatives |
||||||||||||
Loss on disposal of trade receivables |
||||||||||||
Loss on valuation of financial instruments |
||||||||||||
Others |
||||||||||||
Total |
₩ |
₩ |
₩ |
30 . |
Deferred Income Tax and income Tax Expense |
(In millions of Korean won) |
December 31, 2020 |
December 31, 2021 |
||||||
Deferred tax assets |
||||||||
Deferred tax assets to be recovered within 12 months |
₩ |
₩ |
||||||
Deferred tax assets to be recovered after more than 12 months |
||||||||
|
|
|
|
|||||
Deferred tax assets before offsetting |
||||||||
|
|
|
|
|||||
Deferred tax liabilities |
||||||||
Deferred tax liability to be recovered within 12 months |
( |
) | ( |
) | ||||
Deferred tax liability to be recovered after more than 12 months |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Deferred tax liabilities before offsetting |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Deferred tax assets after offsetting |
₩ |
₩ |
||||||
|
|
|
|
|||||
Deferred tax liabilities after offsetting |
₩ |
₩ |
||||||
|
|
|
|
(In millions of Korean won) |
2020 |
|||||||||||||||
Beginning |
Consolidated statements of profit or loss |
Other comprehensive income |
Ending |
|||||||||||||
Deferred tax liabilities |
||||||||||||||||
Derivative instruments |
( |
) | — | ( |
) | |||||||||||
Investment in subsidiaries, associates, and joint ventures |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Depreciation |
( |
) | — | ( |
) | |||||||||||
Advanced depreciation provision |
( |
) | — | ( |
) | |||||||||||
Deposits for severance benefits |
( |
) | ( |
) | ( |
) | ||||||||||
Accrued income |
( |
) | ( |
) | — | ( |
) | |||||||||
Reserve for technology and human resource development |
( |
) | — | — | ( |
) | ||||||||||
Contract cost |
( |
) | — | ( |
) | |||||||||||
Contract assets |
( |
) | ( |
) | — | ( |
) | |||||||||
Financial assets at fair value through profit or loss |
( |
) | ( |
) | — | ( |
) | |||||||||
Financial assets at fair value through other comprehensive income |
( |
) | ( |
) | ( |
) | ||||||||||
Others |
( |
) | — | ( |
) | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
( |
) | ( |
) | ( |
) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Deferred tax assets |
||||||||||||||||
Derivative instruments |
— | ( |
) | |||||||||||||
Provision for impairment or trade receivables |
— | |||||||||||||||
Inventory valuation |
( |
) | — | ( |
) | |||||||||||
Contribution for construction |
— | |||||||||||||||
Unsettled expenses |
( |
) | — | |||||||||||||
Provisions |
— | |||||||||||||||
Property and equipment |
( |
) | — | |||||||||||||
Defined benefit liabilities |
||||||||||||||||
Withholding of facilities expenses |
( |
) | — | |||||||||||||
Deduction of installment receivables |
( |
) | — | |||||||||||||
Assets retirement obligation |
( |
) | — | |||||||||||||
Gain or loss foreign currency translation |
( |
) | — | |||||||||||||
Deferred revenue |
— | |||||||||||||||
Contract assets |
— | — | ||||||||||||||
Real-estate sales |
( |
) | — | |||||||||||||
Others |
( |
) | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
( |
) | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Temporary difference, net |
( |
) | ( |
) | ( |
) | ||||||||||
Tax credit carryforwards |
— | |||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total net balance |
( |
) | ( |
) | ||||||||||||
|
|
|
|
|
|
|
|
(In millions of Korean won) |
2021 |
|||||||||||||||
Beginning |
Consolidated statements of profit or loss |
Other comprehensive income |
Ending |
|||||||||||||
Deferred tax liabilities |
||||||||||||||||
Derivative instruments |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Investment in subsidiaries, associates, and joint ventures |
( |
) | ( |
) | ( |
) | ||||||||||
Depreciation |
( |
) | ( |
) | — | ( |
) | |||||||||
Advanced depreciation provision |
( |
) | ( |
) | — | ( |
) | |||||||||
Deposits for severance benefits |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Accrued income |
( |
) | — | ( |
) | |||||||||||
Reserve for technology and human resource development |
( |
) | — | — | ( |
) | ||||||||||
Contract cost |
( |
) | — | ( |
) | |||||||||||
Contract assets |
( |
) | ( |
) | — | ( |
) | |||||||||
Financial assets at fair value through profit or loss |
( |
) | — | ( |
) | |||||||||||
Financial assets at fair value through other comprehensive income |
( |
) | ( |
) | ( |
) | ||||||||||
Inventory valuation |
— | ( |
) | — | ( |
) | ||||||||||
Others |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
( |
) | ( |
) | ( |
) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Deferred tax assets |
||||||||||||||||
Derivative instruments |
( |
) | ||||||||||||||
Provision for impairment or trade receivables |
— | |||||||||||||||
Inventory valuation |
( |
) | — | |||||||||||||
Contribution for construction |
( |
) | — | |||||||||||||
Unsettled expenses |
— | |||||||||||||||
Provisions |
— | |||||||||||||||
Property and equipment |
( |
) | — | |||||||||||||
Defined benefit liabilities |
( |
) | ( |
) | ||||||||||||
Withholding of facilities expenses |
( |
) | — | |||||||||||||
Deduction of installment receivables |
( |
) | — | |||||||||||||
Assets retirement obligation |
— | |||||||||||||||
Gain or loss foreign currency translation |
— | |||||||||||||||
Deferred revenue |
— | |||||||||||||||
Contract assets |
( |
) | — | |||||||||||||
Others |
— | |||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
( |
) | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Temporary difference, net |
( |
) | ( |
) | ( |
) | ||||||||||
Tax credit carryforwards |
( |
) | — | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total net balance |
( |
) | ( |
) | ||||||||||||
|
|
|
|
|
|
|
|
2019 |
2020 |
2021 |
||||||||||||||||||||||||||||||||||
(In millions of Korean won) |
Before recognition |
Tax effect |
After recognition |
Before recognition |
Tax effect |
After recognition |
Before recognition |
Tax effect |
After recognition |
|||||||||||||||||||||||||||
Gain on valuation of financial assets at fair value through other comprehensive income |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||
Gain (loss) on valuation of hedge instruments |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||
Remeasurements of net defined benefit liabilities |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||
Share of gain(loss) of associates and joint ventures, and others |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||
Exchange differences on translation for foreign operations |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Total |
₩ |
₩ |
( |
) | ₩ |
₩ |
₩ |
( |
) | ₩ |
₩ |
₩ |
( |
) | ₩ |
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of Korean won) |
2019 |
2020 |
2021 |
|||||||||
Current income tax expense |
₩ |
₩ |
₩ |
|||||||||
Impact of change in deferred taxes |
||||||||||||
|
|
|
|
|
|
|||||||
Income tax expense |
₩ |
₩ |
₩ |
|||||||||
|
|
|
|
|
|
(In millions of Korean won) |
2019 |
2020 |
2021 |
|||||||||
Profit before income tax expense |
₩ |
₩ |
₩ |
|||||||||
|
|
|
|
|
|
|||||||
Statutory income tax expense |
₩ |
₩ |
₩ |
|||||||||
Tax effect |
||||||||||||
Income not taxable for taxation purposes |
( |
) | ( |
) | ( |
) | ||||||
Non-deductible expenses |
||||||||||||
Tax credit |
( |
) | ( |
) | ( |
) | ||||||
Additional payment of income taxes |
( |
) | ||||||||||
Tax effect and adjustment on consolidation |
||||||||||||
Goodwill impairment |
— | |||||||||||
Eliminated dividend income form subsidiaries |
||||||||||||
Changes of out-side tax effect |
||||||||||||
Intangible Asset impairment and amortization |
||||||||||||
Reversal expenses of contract cost assets |
( |
) | ( |
) | ||||||||
Change in scope of consolidation |
— | — | ( |
) | ||||||||
Others |
( |
) | ( |
) | ||||||||
|
|
|
|
|
|
|||||||
Income tax expense |
₩ |
₩ |
₩ |
|||||||||
|
|
|
|
|
|
(In millions of Korean won) |
2020 |
2021 |
||||||
Deductible temporary differences |
||||||||
Investment in subsidiaries, associates, and joint ventures |
₩ |
₩ |
||||||
Unused tax loss |
||||||||
Unused Tax credit |
||||||||
Others |
||||||||
|
|
|
|
|||||
Total |
₩ |
₩ |
||||||
|
|
|
|
|||||
Taxable temporary differences |
||||||||
Investment in subsidiaries, associates, and joint ventures |
₩ |
₩ |
||||||
Others |
||||||||
|
|
|
|
|||||
Total |
₩ |
₩ |
||||||
|
|
|
|
(In millions of Korean won) |
2020 |
2021 |
||||||
2022 |
₩ |
₩ |
||||||
2023 |
||||||||
2024 |
||||||||
2025 |
||||||||
2026 |
||||||||
2027 |
||||||||
2028 |
||||||||
2029 |
||||||||
2030 |
||||||||
After 2031 |
||||||||
Total |
₩ |
₩ |
||||||
3 1 . |
Earnings per Share |
2019 |
2020 |
2021 |
||||||||||
Profit attributable to ordinary shares ( i n millions of Korean won) |
₩ |
₩ |
₩ |
|||||||||
Weighted average number of ordinary shares outstanding ( in shares) |
||||||||||||
Basic earnings per share ( i n Korean won) |
2019 |
2020 |
2021 |
||||||||||
Profit attributable to ordinary shares ( i n millions of Korean won) |
₩ |
₩ |
₩ |
|||||||||
Adjustment to net income attributable to ordinary shares ( I |
( |
) | — | |||||||||
Diluted profit attributable to ordinary shares ( i n millions of Korean won) |
||||||||||||
Number of dilutive potential ordinary shares outstanding ( i n number of shares) |
||||||||||||
Weighted average number of ordinary shares outstanding ( i n number of shares) |
||||||||||||
Diluted earnings per share ( i n Korean won) |
3 2 . |
Dividend |
3 3 . |
Cash Generated from Operations |
(In millions of Korean won) |
2019 |
2020 |
2021 |
|||||||||
1. Profit for the year |
₩ |
₩ |
₩ |
|||||||||
2. Adjustments to reconcile net income |
||||||||||||
Income tax expense |
||||||||||||
Interest income |
( |
) | ( |
) | ( |
) | ||||||
Interest expense |
||||||||||||
Dividends income |
( |
) | ( |
) | ( |
) | ||||||
Depreciation |
||||||||||||
Amortization of intangible assets |
||||||||||||
Depreciation of right-of-use |
||||||||||||
Provision for severance benefits |
||||||||||||
Impairment losses on trade receivables |
||||||||||||
Share of net profit or loss of associates and joint ventures |
( |
) | ( |
) | ||||||||
Loss(gain) on disposal of associates and joint ventures |
||||||||||||
Loss on the disposal of subsidiaries |
— | — | ||||||||||
Loss(gain) on disposal of right-of-use |
||||||||||||
Impairment losses on assets held for sale |
||||||||||||
Loss on disposal of property and equipment and investment in properties |
||||||||||||
Loss(gain) on disposal of intangible assets |
( |
) | ||||||||||
Loss on impairment of intangible assets |
||||||||||||
Loss(gain) on foreign currency translation |
( |
) | ||||||||||
Loss(gain) on valuation and settlement of derivatives, net |
( |
) | ( |
) | ||||||||
Loss(gain) on disposal of financial assets at fair value through profit or loss |
( |
) | ( |
) | ||||||||
Gain on valuation of financial assets at fair value through profit or loss |
( |
) | ( |
) | ( |
) | ||||||
Loss(gain) on disposal of financial assets at amortized cost |
( |
) | ( |
) | ||||||||
Others |
||||||||||||
3. Change in operating assets and liabilities, net of effects from purchase of controlled entity and sale of engineering division |
||||||||||||
Decrease(increase) in trade receivables |
( |
) | ||||||||||
Decrease(Increase) in other receivables |
( |
) | ( |
) | ||||||||
Decrease(increase) in other current assets |
( |
) | ||||||||||
Decrease(increase) in other non-current assets |
( |
) | ( |
) | ( |
) | ||||||
Decrease(increase) in inventories |
||||||||||||
Increase(decrease) in trade payables |
( |
) | ||||||||||
Decrease in other payables |
( |
) | ( |
) | ||||||||
Increase in other current liabilities |
||||||||||||
Increase(decrease) in other non-current liabilities |
( |
) | ( |
) | ( |
) | ||||||
Decrease(Increase) in provisions |
( |
) | ( |
) | ||||||||
Decrease(Increase) in deferred revenue |
( |
) | ||||||||||
Increase in plan assets |
( |
) | ( |
) | ( |
) | ||||||
Payment of severance benefits |
( |
) | ( |
) | ( |
) | ||||||
|
|
|
|
|
|
|||||||
4. Cash generated from operations (1+2+3) |
₩ |
|
₩ |
|
₩ |
|
||||||
|
|
|
|
|
|
(In millions of Korean won) |
2019 |
2020 |
2021 |
|||||||||
Reclassification of the current portion of borrowings |
₩ |
₩ |
₩ |
|||||||||
Reclassification of construction-in-progress |
||||||||||||
Reclassification of accounts payable from property and equipment |
( |
) | ||||||||||
Reclassification of accounts payable from intangible assets |
( |
) | ( |
) | ||||||||
Reclassification of payable from defined benefit liability |
( |
) | ||||||||||
Reclassification of payable from plan assets |
( |
) | ( |
) |
3 4 . |
Changes in Liabilities Arising from Financing Activities |
(In millions of Korean won) |
2019 |
|||||||||||||||||||||||||||||||
Non-cash |
||||||||||||||||||||||||||||||||
Beginning |
Cash flows |
Changes in Accounting Policy 1 |
Newly acquired |
Exchange difference |
Fair Value changes |
Others |
Ending |
|||||||||||||||||||||||||
Borrowing |
₩ |
₩ |
₩ |
— |
₩ |
— |
₩ |
₩ |
— |
₩ |
₩ |
|||||||||||||||||||||
Lease liabilities |
( |
) |
— |
— |
( |
) |
||||||||||||||||||||||||||
Derivative liabilities |
( |
) |
— |
— |
( |
) |
( |
) |
( |
) |
||||||||||||||||||||||
Derivative assets |
( |
) |
— |
— |
( |
) |
( |
) |
( |
) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total |
₩ |
₩ |
₩ |
₩ |
₩ |
₩ |
( |
) |
₩ |
( |
) |
₩ |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of Korean won) |
2020 |
|||||||||||||||||||||||||||||||
Beginning |
Cash flows |
Non-cash |
Ending |
|||||||||||||||||||||||||||||
Newly acquired |
Exchange difference |
Fair Value changes |
Change in Consolidati- on Scope |
Others |
||||||||||||||||||||||||||||
Borrowing |
₩ |
₩ |
₩ |
₩ |
( |
) | ₩ |
— | ₩ |
— | ₩ |
( |
) | ₩ |
||||||||||||||||||
Lease liabilities |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||
Other financial liabilities |
— | ( |
) | — | — | — | — | — | ||||||||||||||||||||||||
Derivative liabilities |
( |
) | ( |
) | — | ( |
) | |||||||||||||||||||||||||
Derivative assets |
( |
) | — | ( |
) | — | ( |
) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total |
₩ |
₩ |
( |
) | ₩ |
₩ |
( |
) | ₩ |
( |
) | ₩ |
₩ |
( |
) | ₩ |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of Korean won) |
2021 |
|||||||||||||||||||||||||||||||
Beginning |
Cash flows |
Non-cash |
Ending |
|||||||||||||||||||||||||||||
Newly acquired |
Exchange difference |
Fair Value changes |
Change in Consolidati- on Scope |
Others |
||||||||||||||||||||||||||||
Borrowing |
₩ |
₩ |
₩ |
₩ |
₩ |
— | ₩ |
₩ |
( |
) | ₩ |
|||||||||||||||||||||
Lease liabilities |
( |
) | ( |
) | ||||||||||||||||||||||||||||
Derivative liabilities |
( |
) | ( |
) | ( |
) | — | ( |
) | |||||||||||||||||||||||
Derivative assets |
( |
) | — | ( |
) | ( |
) | — | ( |
) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total |
₩ |
₩ |
₩ |
₩ |
₩ |
( |
) | ₩ |
₩ |
( |
) | ₩ |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
35. |
Segment Information |
Details |
Business service | |
ICT |
Mobile/fixed line telecommunication service and convergence business, B2B business and others | |
Finance |
Credit card business and others | |
Satellite TV |
Satellite TV business | |
Others |
IT, facility security and global business, and others |
2019 |
||||||||||||
(In millions of Korean won) |
Operating revenues |
Operating Income |
Depreciation and Amortization 1 |
|||||||||
ICT |
₩ |
₩ |
₩ |
|||||||||
Finance |
||||||||||||
Satellite TV |
||||||||||||
Others |
||||||||||||
|
|
|
|
|
|
|||||||
Elimination |
( |
) | ( |
) | ( |
) | ||||||
|
|
|
|
|
|
|||||||
Consolidated amount |
₩ |
₩ |
₩ |
|||||||||
|
|
|
|
|
|
1 | Sum of the amortization of tangible assets, intangible assets, investment properties, and right-of-use |
2020 |
||||||||||||
(In millions of Korean won) |
Operating revenues |
Operating Income |
Depreciation and Amortization 1,2 |
|||||||||
ICT |
₩ |
₩ |
₩ |
|||||||||
Finance |
||||||||||||
Satellite TV |
||||||||||||
Others |
||||||||||||
|
|
|
|
|
|
|||||||
Elimination |
( |
) | ( |
) | ( |
) | ||||||
|
|
|
|
|
|
|||||||
Consolidated amount |
₩ |
₩ |
₩ |
|||||||||
|
|
|
|
|
|
1 |
Sum of the amortization of tangible assets, intangible assets, investment properties, and right-of-use |
2 | Property and equipment and intangible assets associated with ICT reporting segment are ₩ |
2021 |
||||||||||||
(In millions of Korean won) |
Operating revenues |
Operating Income |
Depreciation and Amortization 1,2 |
|||||||||
ICT |
₩ |
₩ |
₩ |
|||||||||
Finance |
||||||||||||
Satellite TV |
||||||||||||
Others |
||||||||||||
|
|
|
|
|
|
|||||||
Elimination |
( |
) | ( |
) | ( |
) | ||||||
|
|
|
|
|
|
|||||||
Consolidated amount |
₩ |
₩ |
₩ |
|||||||||
|
|
|
|
|
|
1 |
Sum of the amortization of tangible assets, intangible assets, investment properties, and right-of-use |
2 |
Property and equipment and intangible assets associated with ICT reporting segment are ₩ |
(In millions of Korean won) |
Operating revenues |
Non-current assets1 |
||||||||||||||||||
Location |
2019 |
2020 |
2021 |
2020.12.31 |
2021.12.31 |
|||||||||||||||
Domestic |
₩ |
₩ |
₩ |
₩ |
₩ |
|||||||||||||||
Overseas |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
₩ |
₩ |
₩ |
₩ |
₩ |
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
1 | Non-current assets include property and equipment, intangible assets, investment properties and right-of-use |
36. |
Related Party Transactions |
Relationship |
Name of Entity | |
Associates and joint ventures |
KIF Investment Fund, K-REALTY CR REITs No.1, Boston Global Film & Contents Fund L.P., QTT Global (Group) Company Ltd., CU Industrial Development Co., Ltd, KD Living, Inc., LoginD Co., Ltd., K Bank, ISU-kth Contents Investment Fund, Daiwon Broadcasting Co., Ltd., KT-DSC Creative Economy Youth Start-up Investment Fund, Korea Electronic Vehicle Charging Service, K-REALTY RENTAL HOUSING REIT 2, AI RESEARCH INSTITUTE, KT-IBKC Future Investment Fund 1, Gyeonggi-KT Yoojin Superman Fund, FUNDA Co., Ltd, CHAMP IT Co., Ltd., Alliance Internet Corp., Little big pictures, Virtua Realm Sendirian Berhad, KT-Smart Factory Investment Fund, Studio Discovery Co., Ltd., KT Young Entrepreneurs DNA Investment Fund, Hyundai Robotics Co., Ltd., IGIS Professional Investors Private Investment Real Estate Investment LLC No.395, Maruee Limited Company Specializing in the Cultural Industry, Trustay Co., Ltd., The Skyk Co., Ltd., StorySoop Inc., Mastern No.127 Logispoint Daegu Co., Ltd., SMART KOREA KT NEXT VENTURE FUND, KT Early Stage Investment Fund, Pacific Professional Investors Private Investment Real Estate Investment LLC No.55 Mastern KT Multi-Family Real Estate Private Equity Investment Fund 1, Home Choice Corp, K-REALTY RENTAL HOUSING REIT V, K-Realty 11th Real Estate Investment Trust Company, IBK-KT Emerging Digital Industry Investment Fund, SG-IBKC K-Contents Investment Fund No.1 | |
Others 1 |
Goody Studio Co., Ltd. |
1 |
Although it is evaluated by applying IFRS 9, it is included in the scope of related parties under IAS 24 as it has a significant influence. |
December 31, 2020 |
||||||||||||||||||||||||||
Receivables |
Payables |
|||||||||||||||||||||||||
( I n millions of Korean won) |
Trade receivables |
Other receivables |
Lease receivables |
Trade payables |
Other payables |
Lease liabilities |
||||||||||||||||||||
Associates and joint ventures |
K-REALTY CR REIT 1 |
₩ |
₩ |
₩ |
— | ₩ |
— | ₩ |
— | ₩ |
||||||||||||||||
K Bank | — | — | — | |||||||||||||||||||||||
Others | — | — | — | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total |
₩ |
₩ |
₩ |
— | ₩ |
— | ₩ |
₩ |
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2021 |
||||||||||||||||||||||||||
Receivables |
Payables |
|||||||||||||||||||||||||
( I n millions of Korean won) |
Trade receivables |
Other receivables |
Lease receivables |
Trade payables |
Other payables |
Lease liabilities |
||||||||||||||||||||
Associates and joint ventures |
K Bank | ₩ |
₩ |
₩ |
— | ₩ |
— | ₩ |
₩ |
|||||||||||||||||
IGIS Professional Investors Private Investment Real Estate Investment LLC No.395 | — | — | — | — | — | |||||||||||||||||||||
Others | — | — | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total |
₩ |
₩ |
₩ |
— | ₩ |
₩ |
₩ |
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
2019 |
||||||||||
(In millions of Korean won) |
Sales |
Purchases 1 |
||||||||
Associates and joint ventures |
K- Realty CR-REITs No.1 |
₩ |
₩ |
— | ||||||
K Bank | ||||||||||
Others | ||||||||||
Others |
K-REALTY CR-REIT 101 |
— | ||||||||
|
|
|
|
|||||||
Total |
₩ |
₩ |
||||||||
|
|
|
|
1 |
The amounts include acquisition of property and equipment and others. |
2019 |
||||||||||||||||||
(In millions of Korean won) |
Acquisition of lease receivables |
Acquisition of right-of-use assets |
Interest expense |
Dividend income |
||||||||||||||
Associates and joint ventures |
K- Realty CR-REITs No.1 |
₩ |
— | ₩ |
₩ |
₩ |
||||||||||||
Korea Information & Technology Investment Fund (KIF Investment Fund) | — | — | — | |||||||||||||||
Others | — | — | — | |||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Total |
₩ |
— | ₩ |
₩ |
₩ |
|||||||||||||
|
|
|
|
|
|
|
|
2020 |
||||||||||
( I |
Sales |
Purchases 1 |
||||||||
Associates and joint ventures |
K- Realty CR-REITs No.1 |
₩ |
₩ |
— | ||||||
Korea Information & Technology Investment Fund (KIF Investment Fund) | — | — | ||||||||
K Bank | ||||||||||
Others | ||||||||||
|
|
|
|
|||||||
Total |
₩ |
₩ |
||||||||
|
|
|
|
1 |
The amounts include acquisition of primarily property and equipment. |
2020 |
||||||||||||||
( I |
Interest income |
Interest expense |
Dividend income |
|||||||||||
Associates and joint ventures |
K- Realty CR-REITs No.1 |
₩ — |
₩ |
₩ |
||||||||||
Korea Information & Technology Investment Fund (KIF Investment Fund) | — | — | ||||||||||||
K Bank | — | — | ||||||||||||
Others | — | — | ||||||||||||
|
|
|
|
|
|
|||||||||
Total |
₩ |
₩ |
₩ |
|||||||||||
|
|
|
|
|
|
2021 |
||||||||||
(In millions of Korean won) |
Sales |
Purchases 1 |
||||||||
Associates and joint ventures |
K- Realty CR-REITs No.1 |
₩ |
₩ |
|||||||
IGIS Professional Investors Private Investment Real Estate Investment LLC No. 395 | ||||||||||
K Bank | ||||||||||
Others | ||||||||||
|
|
|
|
|||||||
Total |
||||||||||
|
|
|
|
2021 |
||||||||||||||
(In millions of Korean won) |
Interest income |
Interest expense |
Dividend income |
|||||||||||
Associates and joint ventures |
K- Realty CR-REITs No.1 |
₩ — |
₩ |
₩ |
||||||||||
Korea Information & Technology Investment Fund (KIF Investment Fund) | — | — | ||||||||||||
K Bank | — | — | — | |||||||||||
Others 2 |
— | — | ||||||||||||
|
|
|
|
|
|
|||||||||
Total |
₩ |
₩ |
₩ |
|||||||||||
|
|
|
|
|
|
1 | The amounts include acquisition of primarily property and equipment. |
2 | Transaction amount before OSKENT Co., Ltd., Mission Culture Industry Limited, Sweet and Sour Culture |
(In millions of Korean won) |
2019 |
2020 |
2021 |
|||||||||
Salaries and other short-term benefits |
₩ |
₩ |
₩ |
|||||||||
Post-employment benefits |
||||||||||||
Stock-based compensation |
||||||||||||
|
|
|
|
|
|
|||||||
Total |
₩ |
₩ |
₩ |
|||||||||
|
|
|
|
|
|
December 31, 2019 |
||||||||||||
Borrowing transaction 1 |
Equity contributions in cash |
|||||||||||
(In millions of Korean won) |
Borrowing 2 |
Repayment |
||||||||||
KT-IBKC Future Investment Fund1 |
₩ |
— | ₩ |
— | ₩ |
|||||||
KT Philippines C o. Ltd. |
— | — | ||||||||||
Virtua Realm Sendirian Berhad |
— | — | ||||||||||
K-REALTY CR REIT 1 |
— | — | ||||||||||
K Bank |
— | — | ||||||||||
KIF Investment Fund |
— | — | — | |||||||||
Daiwon Broadcasting Co.,Ltd. |
— | — | — | |||||||||
JB Emerging Market Specialty Investment Private Equity Trust No.1 |
— | — | — | |||||||||
Gyeonggi-KT Yoojin Superman Fund |
— | — | ||||||||||
KT-CKP New Media Investment Fund |
— | — | ( |
) | ||||||||
KT-DSC creative economy youth start-up investment fund |
— | — | ( |
) | ||||||||
KT-Smart Factory Investment Fund |
— | — | ||||||||||
KT-SB Venture Investment Fund |
— | — | ( |
) | ||||||||
|
|
|
|
|
|
|||||||
Total |
₩ |
— | ₩ |
₩ |
||||||||
|
|
|
|
|
|
1 | Borrowing transactions include lease transactions. |
2 | Conversion effect from the adoption of IFRS 16 Lease |
December 31, 2020 |
||||||||||||
Borrowing transaction 1 |
Equity contributions in cash |
|||||||||||
(In millions of Korean won) |
Borrowing |
Repayment |
||||||||||
K- Realty CR-REITs No.1 |
₩ |
— | ₩ |
₩ |
— | |||||||
Studio Discovery Co. Ltd. |
— | — | ||||||||||
KT Young Entrepreneurs DNA Investment Fund |
— | — | ||||||||||
KT-Smart Factory Investment Fund |
— | — | ||||||||||
KT-CKP New Media Investment Fund |
— | — | ( |
) | ||||||||
K Bank |
— | — | ||||||||||
Gyeonggi-KT Yoojin Superman Fund |
— | — | ||||||||||
Hyundai Robotics Co. Ltd. |
— | — | ||||||||||
|
|
|
|
|
|
|||||||
Total |
₩ |
— | ₩ |
₩ |
||||||||
|
|
|
|
|
|
1 |
Borrowing transactions include lease transactions. |
December 31, 2021 |
||||||||||||
Borrowing transaction 1 |
Equity contributions in cash |
|||||||||||
(In millions of Korean won) |
Borrowing |
Repayment |
||||||||||
K- REALTY CR REIT 1 |
₩ |
— | ₩ |
₩ |
— | |||||||
K Bank |
— | — | ||||||||||
Pacific Professional Investors Private Investment Real Estate Investment LLC No. 55 |
— | — | ||||||||||
KT Young Entrepreneurs DNA Investment Fund |
— | — | ||||||||||
Mastern KT Multi-Family Real Estate Private Equity Investment Fund 1 |
— | — | ||||||||||
KT-IBKC Future Investment Fund 1 |
— | — | ( |
) | ||||||||
Others |
— | — | ||||||||||
|
|
|
|
|
|
|||||||
Total |
₩ |
— | ₩ |
₩ |
||||||||
|
|
|
|
|
|
1 | Borrowing transaction include lease transactions. |
3 7 . |
Financial Risk Management |
(In millions of Korean won) |
Fluctuation of foreign exchange rate |
Income before tax 1 |
Shareholders’ equity |
|||||||||
2019.12.31 |
% | ₩ |
₩ |
|||||||||
- |
% | ( |
) | ( |
) | |||||||
2020.12.31 |
% | ₩ |
₩ |
|||||||||
- |
% | ( |
) | ( |
) | |||||||
2021.12.31 |
% | ₩ |
( |
) | ₩ |
|||||||
- |
% | ( |
) |
1 | Computed with considering derivatives hedging effect applied by the Group to hedge foreign exchange risk of liabilities in foreign currencies. |
(In thousands of foreign currencies) |
2019 |
2020 |
2021 |
|||||||||||||||||||||
Financial assets |
Financial liabilities |
Financial assets |
Financial liabilities |
Financial assets |
Financial liabilities |
|||||||||||||||||||
USD |
||||||||||||||||||||||||
SDR 1 |
||||||||||||||||||||||||
JPY |
||||||||||||||||||||||||
GBP |
— | — | — | — | ||||||||||||||||||||
EUR |
||||||||||||||||||||||||
CNY |
||||||||||||||||||||||||
RWF 2 |
— | — | — | |||||||||||||||||||||
THB 3 |
— | — | — | — | ||||||||||||||||||||
MMK 4 |
— | — | — | — | ||||||||||||||||||||
TZS 5 |
— | — | — | |||||||||||||||||||||
BWP 6 |
— | — | — | |||||||||||||||||||||
HKD 7 |
— | — | — | |||||||||||||||||||||
BDT 8 |
— | — | — | — | — | |||||||||||||||||||
PLN 9 |
— | — | — | — | — | |||||||||||||||||||
VND 10 |
— | — | — | |||||||||||||||||||||
XAF 11 |
— | — | — | — | ||||||||||||||||||||
SGD 12 |
— | — | ||||||||||||||||||||||
TWD 13 |
— | — | — | — | — | |||||||||||||||||||
CHF 14 |
— | — | — | — | — |
1 |
Special Drawing Rights. |
2 |
Rwanda Franc. |
3 |
Thailand Bhat. |
4 |
Myanmar Kyat. |
5 |
Tanzanian Shilling. |
6 |
Botswana Pula. |
7 |
Hong Kong Dollar. |
8 |
Bangladesh Taka. |
9 |
Polish Zloty. |
10 |
Vietnam Dong. |
11 |
Central African Franc. |
12 |
Singapore Dollar. |
13 |
Taiwan Dollar. |
14 |
Swiss Franc. |
|
(In millions of Korean won) |
Fluctuation of price |
Income before tax |
Equity |
|||||||
2019.12.31 |
₩ |
₩ |
||||||||
- |
( |
) | ( |
) | ||||||
2020.12.31 |
₩ |
₩ |
||||||||
- |
( |
) | ( |
) | ||||||
2021.12.31 |
₩ |
₩ |
||||||||
- |
( |
) | ( |
) |
(In millions of Korean won) |
Fluctuation of interest rate |
Income before tax |
Shareholders’ equity |
|||||||||
2019.12.31 |
+ |
₩ |
|
₩ |
|
|||||||
- |
( |
) | ( |
) | ||||||||
2020.12.31 |
+ |
₩ |
₩ |
|||||||||
- |
( |
) | ( |
) | ||||||||
2021.12.31 |
+ |
₩ |
₩ |
|||||||||
- |
( |
) | ( |
) |
- |
Risk management |
- |
Security |
- | Impairment of financial assets |
• | trade receivables for sales of goods and provision of services, |
• | contract assets relating to provision of services, |
• | debt investments carried at fair v a lue through other comprehensive income, and |
• | other financial assets carried at amortized cost. |
(In millions of Korean won) |
December 31, 2020 |
December 31, 2021 |
||||||
Cash and cash equivalents (except for cash on hand) |
₩ |
₩ |
||||||
Trade and other receivables |
||||||||
Financial assets at amortized costs |
||||||||
Financial assets at fair value through other comprehensive income |
||||||||
Contract assets |
||||||||
Other financial assets |
||||||||
Derivatives financial assets for hedging |
||||||||
Financial assets at fair value through profit or loss |
||||||||
Financial assets at fair value through other comprehensive income |
||||||||
Financial assets at amortized costs |
||||||||
|
|
|
|
|||||
Total |
₩ |
₩ |
||||||
|
|
|
|
December 31, 2020 |
||||||||||||||||
(In millions of Korean won) |
Less than 1 year |
1-5 years |
More than 5 years |
Total |
||||||||||||
Trade and other payables |
₩ |
₩ |
₩ |
₩ |
||||||||||||
Borrowings(including debentures) |
||||||||||||||||
Lease liabilities |
||||||||||||||||
Other non-derivative financial liabilities |
— | |||||||||||||||
Financial guarantee contracts 1 |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
₩ |
₩ |
₩ |
₩ |
||||||||||||
|
|
|
|
|
|
|
|
1 | It is total amount guaranteed by the Group according to guarantee contracts. Cash flow from financial guarantee contracts is classified as the maturity group in the earliest period when the financial guarantee contracts can be executed. |
December 31, 2021 |
||||||||||||||||
(In millions of Korean won) |
Less than 1 year |
1-5 years |
More than 5 years |
Total |
||||||||||||
Trade and other payables |
₩ |
₩ |
₩ |
₩ |
||||||||||||
Borrowings(including debentures) |
||||||||||||||||
Lease liabilities |
||||||||||||||||
Other non-derivative financial liabilities |
||||||||||||||||
Financial guarantee contracts 1 |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
₩ |
₩ |
₩ |
₩ |
||||||||||||
|
|
|
|
|
|
|
|
1 | It is total amount guaranteed by the Group according to guarantee contracts. Cash flow from financial guarantee contracts is classified as the maturity group in the earliest period when the financial guarantee contracts can be executed. |
December 31, 2019 |
||||||||||||||||
(In millions of Korean won) |
Less than 1 year |
1-5 years |
More than 5 years |
Total |
||||||||||||
Outflow |
₩ |
₩ |
₩ |
₩ |
||||||||||||
Inflow |
December 31, 2020 |
||||||||||||||||
(In millions of Korean won) |
Less than 1 year |
1-5 years |
More than 5 years |
Total |
||||||||||||
Derivatives settled gross 1 |
||||||||||||||||
Outflows |
₩ |
₩ |
₩ |
₩ |
||||||||||||
Inflows |
December 31, 2021 |
||||||||||||||||
(In millions of Korean won) |
Less than 1 year |
1-5 years |
More than 5 years |
Total |
||||||||||||
Derivatives held for trading 2 |
||||||||||||||||
Outflows |
₩ |
₩ |
₩ |
₩ |
||||||||||||
Derivatives settled gross 3 |
||||||||||||||||
Outflows |
₩ |
₩ |
₩ |
₩ |
||||||||||||
Inflows |
1 | Cash outflow and inflow of gross-settled derivatives are undiscounted contractual cash flow and may differ from the amount in the statement of financial position. |
2 | During the current period, derivative liabilities held-for-trading are shareholder-to-share |
3 | Cash outflow and inflow of gross-settled derivatives are undiscounted contractual cash flow and may differ from the amount in the statement of financial position. |
(In millions of Korean won) |
December 31, 2020 |
December 31, 2021 |
||||||
Total liabilities |
₩ |
₩ |
||||||
Total equity |
||||||||
Debt-to-equity |
% | % |
(In millions of Korean won, %) |
December 31, 2020 |
December 31, 2021 |
||||||
Total borrowings |
₩ |
₩ |
||||||
Less: cash and cash equivalents |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Net debt |
||||||||
Total equity |
||||||||
Total capital |
||||||||
Gearing ratio |
% | % |
(In millions of Korean won) |
December 31, 2020 |
|||||||||||||||||||||||
Gross assets |
Gross liabilities offset |
Net amounts presented in the statement of financial position |
Amounts not offset |
Net amount |
||||||||||||||||||||
Financial instruments |
Cash collateral |
|||||||||||||||||||||||
Trade receivables |
₩ |
₩ |
( |
) | ₩ |
₩ |
( |
) | ₩ |
₩ |
|
(In millions of Korean won) |
December 31, 2021 |
|||||||||||||||||||||||
Gross assets |
Gross liabilities offset |
Net amounts presented in the statement of financial position |
Amounts not offset |
Net amount |
||||||||||||||||||||
Financial instruments |
Cash collateral |
|||||||||||||||||||||||
Trade receivables |
₩ |
₩ |
₩ |
₩ |
( |
) | ₩ |
₩ |
(In millions of Korean won) |
December 31, 2020 |
|||||||||||||||||||||||
Gross liabilities |
Gross assets offset |
Net amounts presented in the statement of financial position |
Amounts not offset |
Net amount |
||||||||||||||||||||
Financial instruments |
Cash collateral |
|||||||||||||||||||||||
Trade payables |
₩ |
₩ |
— | ₩ |
₩ |
( |
) | ₩ |
₩ |
|
||||||||||||||
Other financial liabilities |
( |
) | — | — | — | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
₩ |
₩ |
( |
) | ₩ |
₩ |
( |
) | ₩ |
₩ |
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of Korean won) |
December 31, 2021 |
|||||||||||||||||||||||
Gross liabilities |
Gross assets offset |
Net amounts presented in the statement of financial position |
Amounts not offset |
Net amount |
||||||||||||||||||||
Financial instruments |
Cash collateral |
|||||||||||||||||||||||
Trade payables |
₩ |
₩ |
— | ₩ |
₩ |
( |
) | ₩ |
₩ |
|
38. |
Fair Value |
December 31, 2020 |
December 31, 2021 |
|||||||||||||||
(In millions of Korean won) |
Carrying amount |
Fair value |
Carrying amount |
Fair value |
||||||||||||
Financial assets |
||||||||||||||||
Cash and cash equivalents |
₩ |
|
₩ |
|
||||||||||||
Trade and other receivables |
||||||||||||||||
Financial assets measured at amortized cost 2 |
|
|
||||||||||||||
Financial assets at fair value through other comprehensive income |
||||||||||||||||
Other financial assets |
||||||||||||||||
Financial assets measured at amortized cost |
|
|
||||||||||||||
Financial assets at fair value through profit or loss |
||||||||||||||||
Financial assets at fair value through other comprehensive income |
||||||||||||||||
Derivative financial assets for hedging |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
₩ |
|
₩ |
|
||||||||||||
|
|
|
|
|||||||||||||
Financial liabilities |
||||||||||||||||
Trade and other payables |
₩ |
|
₩ |
|
||||||||||||
Borrowings |
|
|||||||||||||||
Other financial liabilities |
||||||||||||||||
Financial liabilities at amortized cost |
|
|
||||||||||||||
Financial liabilities at fair value through profit or loss |
||||||||||||||||
Derivative financial liabilities for hedging |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
₩ |
₩ |
||||||||||||||
|
|
|
|
1 | The Group did not conduct fair value estimation since the book amount is a reasonable approximation of the fair value |
2 | With the application of IFRS 7, lease receivables are excluded from fair value disclosure. |
3 8 .2 |
Fair Value Hierarchy |
• | Level 1: The fair value of financial instruments traded in active markets is based on quoted market prices at the end of the reporting period. The quoted market price used for financial assets held by the Group is the current bid price. These instruments are included in level 1. |
• | Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximize the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2. |
• | Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. |
(In millions of Korean won) |
December 31, 2020 |
|||||||||||||||
Level 1 |
Level 2 |
Level 3 |
Total |
|||||||||||||
Assets |
||||||||||||||||
Trade and other receivables |
||||||||||||||||
Financial assets at fair value through other comprehensive income |
₩ |
— | ₩ |
₩ |
— | ₩ |
||||||||||
Other financial assets |
||||||||||||||||
Financial assets at fair value through profit or loss |
||||||||||||||||
Financial assets at fair value through other comprehensive income |
||||||||||||||||
Derivative financial assets for hedging |
— | — | ||||||||||||||
Disclosed fair value |
||||||||||||||||
Investment properties |
— | — | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
₩ |
₩ |
₩ |
₩ |
||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Liabilities |
||||||||||||||||
Borrowings |
₩ |
— | ₩ |
₩ |
— | ₩ |
||||||||||
Other financial liabilities |
||||||||||||||||
Financial liabilities at fair value through profit or loss |
— | |||||||||||||||
Derivative financial liabilities for hedging |
— | |||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
₩ |
— | ₩ |
₩ |
₩ |
|||||||||||
|
|
|
|
|
|
|
|
(In millions of Korean won) |
December 31, 2021 |
|||||||||||||||
Level 1 |
Level 2 |
Level 3 |
Total |
|||||||||||||
Assets |
||||||||||||||||
Trade and other receivables |
||||||||||||||||
Financial assets at fair value through other comprehensive income |
₩ |
— | ₩ |
₩ |
— | ₩ |
||||||||||
Other financial assets |
||||||||||||||||
Financial assets at fair value through profit or loss |
||||||||||||||||
Financial assets at fair value through other comprehensive income |
||||||||||||||||
Derivative financial assets for hedging |
— | |||||||||||||||
Disclosed fair value |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment properties |
— | — | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
₩ |
₩ |
, 872 | ₩ |
₩ |
|||||||||||
|
|
|
|
|
|
|
|
|||||||||
Liabilities |
||||||||||||||||
Borrowings |
₩ |
— | ₩ |
₩ |
— | ₩ |
||||||||||
Other financial liabilities |
||||||||||||||||
Financial liabilities at fair value through profit or loss |
— | |||||||||||||||
Derivative financial liabilities for hedging |
— |
— |
||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
₩ |
— | ₩ |
₩ |
₩ |
|||||||||||
|
|
|
|
|
|
|
|
2020 |
||||||||||||||||
Financial assets |
Financial liabilities |
|||||||||||||||
(In millions of Korean won) |
Financial assets at fair value through profit or loss |
Financial assets at fair value through other comprehensive income |
Financial liabilities at fair value through profit or loss |
Derivative financial liabilities (assets) for hedging |
||||||||||||
Beginning balance |
₩ |
₩ |
₩ |
— | ₩ |
( |
) | |||||||||
Purchases |
— | |||||||||||||||
Reclassification |
— | — | — | |||||||||||||
Disposal |
( |
) | ( |
) | — | — | ||||||||||
Amount recognized in profit or loss 1,2 |
( |
) | ( |
) | ||||||||||||
Amount recognized in other comprehensive income 1 |
— | ( |
) | — | ( |
) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Ending balance |
₩ |
₩ |
|
₩ |
|
₩ |
|
|||||||||
|
|
|
|
|
|
|
|
1 | Amount recognized in profit or loss and other comprehensive income with respect to derivative financial liabilities for hedging comprises loss on valuation of derivative instruments. |
2 | Amount recognized in profit or loss with respect to financial liabilities at fair value through profit or loss comprises loss on valuation of derivative instruments. |
2021 |
||||||||||||||||
Financial assets |
Financial liabilities |
|||||||||||||||
( I n millions of Korean won) |
Financial assets at fair value through profit or loss |
Financial assets at fair value through other comprehensive income |
Derivative financial assets (liabilities) for hedging |
Financial liabilities at fair value through profit or loss |
||||||||||||
Beginning balance |
₩ |
₩ |
₩ |
( |
) | ₩ |
||||||||||
Acquisition |
— | |||||||||||||||
Reclassification |
( |
) | — | — | ||||||||||||
Changes in Consolidation Scope |
( |
) | — | |||||||||||||
Disposal |
( |
) | ( |
) | — | — | ||||||||||
Amount recognized in profit or loss 1,2 |
( |
) | ||||||||||||||
Amount recognized in other comprehensive income 1 |
— | ( |
) | — | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Ending balance |
₩ |
₩ |
₩ |
₩ |
||||||||||||
|
|
|
|
|
|
|
|
1 | The recognition of gains and losses on derivatives financial liabilities (assets) for hedging purposes consists entirely of derivatives valuation losses. |
2 | The recognition of gains and losses on financial liabilities measured at fair value through profit or loss consists of derivative valuation losses. |
3 8 .4 |
Valuation Technique and the Inputs |
December 31, 2020 | ||||||||||
(In millions of Korean won) |
Fair value |
Level |
Valuation techniques | |||||||
Assets |
||||||||||
Trade and other receivables |
||||||||||
Financial assets at fair value through other comprehensive income |
₩ |
|
2 | |||||||
Other financial assets |
||||||||||
Financial assets at fair value through profit or loss |
2,3 | DCF Model, Adjusted net asset model | ||||||||
Financial assets at fair value through other comprehensive income |
2,3 | |||||||||
Derivative financial assets for hedging |
2 | |||||||||
Investment properties |
3 | |||||||||
Liabilities |
||||||||||
Borrowings |
₩ |
2 | ||||||||
Other financial liabilities |
||||||||||
Financial liabilities at fair value through profit or loss |
2,3 | DCF Model, Binomial Option Pricing | ||||||||
Derivative financial liabilities for hedging |
2,3 | Hull-White model, DCF Model |
December 31, 2021 | ||||||||||
(In millions of Korean won) |
Fair value |
Level |
Valuation techniques | |||||||
Assets |
||||||||||
Trade and other receivables |
||||||||||
Financial assets at fair value through other comprehensive income |
₩ |
2 | ||||||||
Other financial assets |
||||||||||
Financial assets at fair value through profit or loss |
2,3 | DCF Model, Adjusted Net Asset Model | ||||||||
Financial assets at fair value through other comprehensive income |
2,3 | DCF Model, Market approach Model | ||||||||
Derivative financial assets for hedging |
2,3 | Hull-White Model, DCF Model | ||||||||
Investment properties |
3 | |||||||||
Liabilities |
||||||||||
Borrowings |
₩ |
2 | ||||||||
Other financial liabilities |
||||||||||
Financial liabilities at fair value through profit or loss |
2,3 | DCF Model, Binomial Option Pricing Model | ||||||||
Derivative financial liabilities for hedging |
2 |
3 8 .5 |
Valuation Processes for Fair Value Measurements Categorized Within Level 3 |
3 8 .6 |
Gains and losses on valuation at the transaction date |
(In millions of Korean won) |
2020 |
2021 |
||||||||||||||
Derivatives used for hedging |
Derivative held for trading |
Derivatives used for hedging |
Derivative held for trading |
|||||||||||||
I. Beginning balance |
₩ |
₩ |
₩ |
₩ |
||||||||||||
II. New transactions |
||||||||||||||||
III. Recognized at fair value through profit or loss |
( |
) | ( |
) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
IV. Ending balance (I+II+III) |
₩ |
₩ |
₩ |
₩ |
||||||||||||
|
|
|
|
|
|
|
|
3 9 . |
Interests in Unconsolidated Structured Entities |
Classes of entities |
Nature, purpose, activities and others | |
Real estate finance |
A structured entity incorporated for the purpose of real estate development is provided with funds by investors’ investments in equity and borrowings from financial institutions (including long-term and short-term loans and issuance of Asset Backed Commercial Paper (“ABCP”) due in three months), and based on these, the structured entity implements activities such as real estate acquisition, development and mortgage loans. The structured entity repays loan principals with funds incurred from instalment house sales after the completion of real estate development or with collection of the principal of mortgage loan. The remaining shares are distributed to investors. As at December 31, 2021, this entity is engaged in real estate finance structured entity, and generates revenues by receiving dividends from direct investments in or receiving interests on loans to the structured entity. Financial institutions, including the Entity, are provided with guarantees including joint guarantees or real estate collateral from investors and others. Consequently, the entity is a priority over other parties in the preservation of claim. However, when the credit rating of investors and others decreases or when the value of real estate decreases, the entity may be obliged to cover losses. | |
PEF and investment funds |
Minority investors including managing members contribute to Private Equity Fund (“PEF”) and investment funds incorporated for the purpose of providing funds to the small, medium, or venture entities, and the managing member implements activities such as investments in equity or loans based on the contributions. As at December 31, 2021, the entity is engaged in PEF and investment funds structured entity, and after contributing to PEF and investment funds, the entity receives dividends for operating revenues from these contributions. The entity is provided with underlying assets of PEF and investment funds as collateral. However, when the value of the underlying assets decreases, the entity may be obliged to cover losses. | |
Asset securitization |
The Group transfers accounts receivable for handset sales to its Special Purpose Company (“SPC”) for asset securitization. SPC issues the asset-backed securities with accounts receivable for handset sales as an underlying asset, and makes payment for the underlying asset acquired. |
(In millions of Korean won) |
December 31, 2020 |
|||||||||||||||
Real Estate Finance |
PEF and Investment Funds |
Asset Securitization |
Total |
|||||||||||||
Total assets of unconsolidated structured entities |
₩ |
₩ |
₩ |
₩ |
||||||||||||
Assets recognized in statement of financial position |
||||||||||||||||
Other financial assets |
₩ |
₩ |
₩ |
— | ₩ |
|||||||||||
Joint ventures and associates |
— | |||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
₩ |
₩ |
₩ |
— | ₩ |
|||||||||||
|
|
|
|
|
|
|
|
|||||||||
Maximum loss exposure 1 |
||||||||||||||||
Investment assets |
₩ |
₩ |
₩ |
— | ₩ |
|||||||||||
Cash deficiency support |
— | — | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
₩ |
₩ |
₩ |
— | ₩ |
|||||||||||
|
|
|
|
|
|
|
|
1 | It includes the investments recognized in the Group’s consolidated financial statements and the amounts which are probable to be determined when certain conditions are met by agreements including purchase agreements, credit granting and others. |
December 31, 2021 |
||||||||||||||||
(In millions of Korean won) |
Real Estate Finance |
PEF and Investment Funds |
Asset Securitization |
Total |
||||||||||||
Total assets of unconsolidated structured entities |
₩ |
₩ |
₩ |
₩ |
||||||||||||
Assets recognized in statement of financial position |
||||||||||||||||
Other financial assets |
₩ |
₩ |
₩ |
— | ₩ |
|||||||||||
Joint ventures and associates |
— | |||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
₩ |
₩ |
₩ |
— | ₩ |
|||||||||||
|
|
|
|
|
|
|
|
|||||||||
Maximum loss exposure 1 |
||||||||||||||||
Investment assets |
₩ |
₩ |
₩ |
— | ₩ |
|||||||||||
Investment agreement, etc |
— | — | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
₩ |
₩ |
₩ |
— | ₩ |
|||||||||||
|
|
|
|
|
|
|
|
1 | Includes the investments recognized in the Group’s financial statements and the amounts which are probable to be determined when certain conditions are met by agreements including purchase agreements, credit granting and others. |
40 . |
Information About Non-controlling Interests |
(In millions of Korean won) |
December 31, 2019 |
|||||||||||||||||||||||
Non- controlling Interests rate (%) |
Accumulated non-controlling interests at the beginning of the year |
Profit or loss allocated to non-controlling interests |
Dividend paid to non- controlling interests |
Others |
Accumulated non-controlling interests at the end of the year |
|||||||||||||||||||
KT Skylife Co., Ltd. |
% | ₩ |
₩ |
₩ |
( |
) | ₩ |
₩ |
||||||||||||||||
BC Card Co., Ltd. |
% | ( |
) | |||||||||||||||||||||
KT Powertel Co., Ltd. |
% | — | ( |
) | ||||||||||||||||||||
KT Alpha Co., Ltd. (KT Hitel Co., Ltd.) |
% | — | ||||||||||||||||||||||
KT Telecop Co., Ltd. |
% | ( |
) | — | ( |
) |
(In millions of Korean won) |
December 31, 2020 |
|||||||||||||||||||||||
Non- controlling Interests rate (%) |
Accumulated non-controlling interests at the beginning of the year |
Profit or loss allocated to non-controlling interests |
Dividend paid to non- controlling interests |
Others |
Accumulated non-controlling interests at the end of the year |
|||||||||||||||||||
KT Skylife Co., Ltd. |
% | ₩ |
₩ |
₩ |
( |
) | ₩ |
( |
) | ₩ |
||||||||||||||
BC Card Co., Ltd. |
% | ( |
) | |||||||||||||||||||||
KT Powertel Co., Ltd. |
% | ( |
) | ( |
) | |||||||||||||||||||
KT Alpha Co., Ltd. (KT Hitel Co., Ltd.) |
% | ( |
) | — | ( |
) | ||||||||||||||||||
KT Telecop Co., Ltd. |
% | — | ( |
) |
(In millions of Korean won) |
December 31, 2021 |
|||||||||||||||||||||||
Non- controlling Interests rate (%) |
Accumulated non-controlling interests at the beginning of the year |
Profit or loss allocated to non-controlling interests |
Dividend paid to non- controlling interests |
Others |
Accumulated non-controlling interests at the end of the year |
|||||||||||||||||||
KT Skylife Co., Ltd. |
% | ₩ |
₩ |
₩ |
( |
) | ₩ |
₩ |
||||||||||||||||
BC Card Co., Ltd. |
% | ( |
) | |||||||||||||||||||||
KTIS Corporation |
% | ( |
) | ( |
) | |||||||||||||||||||
KTCS Corporation |
% | ( |
) | ( |
) | |||||||||||||||||||
Nasmedia Co., Ltd |
% | ( |
) |
December 31, 2019 |
||||||||||||||||||||
(In millions of Korean won) |
KT Skylife Co., Ltd. |
BC Card Co., Ltd. |
KT Powertel Co., Ltd. |
KT Alpha Co., Ltd. (KT Hitel Co., Ltd.) |
KT Telecop Co., Ltd. |
|||||||||||||||
Non-controlling Interests rate (%) |
% | % | % | % | % | |||||||||||||||
Current assets |
₩ |
₩ |
₩ |
₩ |
₩ |
|||||||||||||||
Non-current assets |
||||||||||||||||||||
Current liabilities |
||||||||||||||||||||
Non-current liabilities |
||||||||||||||||||||
Equity |
||||||||||||||||||||
Operating revenue |
||||||||||||||||||||
Profit or loss for the year |
( |
) | ||||||||||||||||||
Total comprehensive income (loss) |
( |
) | ( |
) | ||||||||||||||||
Cash flows from operating activities |
||||||||||||||||||||
Cash flows from investing activities |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||
Cash flows from financing activities |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||
Net increase (decrease) in cash and cash equivalents |
( |
) | ( |
) | ||||||||||||||||
Cash and cash equivalents at beginning of year |
||||||||||||||||||||
Exchange differences |
( |
) | ||||||||||||||||||
Cash and cash equivalents at end of year |
December 31, 2020 |
||||||||||||||||
(In millions of Korean won) |
KT Skylife Co., Ltd. |
BC Card Co., Ltd. |
KT Powertel Co., Ltd. |
KT Alpha Co., Ltd. (KT Hitel Co., Ltd.) |
||||||||||||
Non-controlling Interests rate (%) |
% | % | % | % | ||||||||||||
Current assets |
₩ |
₩ |
₩ |
₩ |
||||||||||||
Non-current assets |
||||||||||||||||
Current liabilities |
||||||||||||||||
Non-current liabilities |
||||||||||||||||
Equity |
||||||||||||||||
Operating revenue |
||||||||||||||||
Profit or loss for the year |
||||||||||||||||
Total comprehensive income (loss) |
( |
) | ||||||||||||||
Cash flows from operating activities |
( |
) | ||||||||||||||
Cash flows from investing activities |
( |
) | ( |
) | ( |
) | ||||||||||
Cash flows from financing activities |
( |
) | ( |
) | ( |
) | ||||||||||
Net increase (decrease) in cash and cash equivalents |
( |
) | ||||||||||||||
Cash and cash equivalents at beginning of year |
||||||||||||||||
Exchange differences |
( |
) | ( |
) | ( |
) | ||||||||||
Cash and cash equivalents at end of year |
December 31, 2021 |
||||||||||||||||||||
(In millions of Korean won) |
KT Skylife Co., Ltd. |
BC Card Co., Ltd. |
KTIS Corporation |
KTCS Corporation |
Nasmedia, Co., Ltd. |
|||||||||||||||
Non-controlling Interests rate (%) |
% | % | % | % | % | |||||||||||||||
Current assets |
₩ |
₩ |
₩ |
₩ |
₩ |
|||||||||||||||
Non-current assets |
||||||||||||||||||||
Current liabilities |
||||||||||||||||||||
Non-current liabilities |
||||||||||||||||||||
Equity |
||||||||||||||||||||
Operating revenue |
||||||||||||||||||||
Profit or loss for the year |
||||||||||||||||||||
Total comprehensive income (loss) |
||||||||||||||||||||
Cash flows from operating activities |
( |
) | ||||||||||||||||||
Cash flows from investing activities |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||
Cash flows from financing activities |
( |
) | ( |
) | ( |
) | ||||||||||||||
Net increase (decrease) in cash and cash equivalents |
( |
) | ( |
) | ( |
) | ||||||||||||||
Cash and cash equivalents at beginning of year |
||||||||||||||||||||
Exchange differences |
( |
) | ( |
) | ( |
) | ||||||||||||||
Cash and cash equivalents at end of year |
40 .3 |
Transactions with Non-controlling Interests |
(In millions of Korean won) |
2019 |
2020 |
2021 |
|||||||||
Carrying amount of non-controlling interests acquired |
₩ |
( |
) | ₩ |
₩ |
|||||||
Consideration paid to non-controlling interests |
||||||||||||
|
|
|
|
|
|
|||||||
Excess of consideration paid recognized in parent’s equity |
₩ |
( |
) | ₩ |
₩ |
|||||||
|
|
|
|
|
|
4 1 . |
Business Combination |
( I n millions of Korean won) |
Major transfer business |
Business combination date |
Transfer price |
|||||||
HCN Co., Ltd. |
Cable television service | ₩ |
||||||||
Epsilon Global Communications Pte. Ltd. |
Network service industry |
( I n millions of Korean won) |
HCN Co., Ltd. |
Epsilon Global Communications Pte. Ltd. |
||||||
I. Total transfer price (A) |
₩ |
₩ |
||||||
II. Amount recognized as identifiable assets and liabilities |
||||||||
Non-current assets |
||||||||
Current assets |
||||||||
Non-current liabilities |
||||||||
Current liabilities |
||||||||
Total identifiable net assets (B) |
||||||||
III. Non-controlling interest (C) |
||||||||
IV. Fair value of net assets acquired (D=B-C) |
||||||||
|
|
|
|
|||||
V. Goodwill (E=A-D) |
₩ |
₩ |
||||||
|
|
|
|
( I n millions of Korean won) |
HCN Co., Ltd. |
Epsilon Global Communications Pte. Ltd. |
||||||
Fair value of identifiable assets |
₩ |
₩ |
||||||
Cash and cash equivalents |
||||||||
Trade and other receivables |
||||||||
Other financial assets |
— | |||||||
Finance lease receivables |
— | |||||||
Property and equipment |
||||||||
Investment properties |
— | |||||||
Right-of-use |
||||||||
Intangible assets |
||||||||
Customer relationship (Intangible assets) |
||||||||
Deferred income tax assets |
— | |||||||
Long-term finance lease receivables |
— | |||||||
Other non-current assets |
— | |||||||
Investments in associates and joint ventures |
— | |||||||
Other non-current financial assets |
— | |||||||
Fair value of identifiable liabilities |
||||||||
Trade and other payables |
||||||||
Lease liabilities |
||||||||
Current provisions |
— | |||||||
Current income tax liabilities |
— | |||||||
Other current liabilities |
||||||||
Net defined benefit liabilities |
— | |||||||
Deferred income tax liabilities |
||||||||
Other non-current liabilities |
||||||||
Borrowings |
— | |||||||
|
|
|
|
|||||
Fair value of identifiable net assets |
₩ |
₩ |
||||||
|
|
|
|
( I n millions of Korean won) |
Goodwill |
Customer relationship |
||||||
HCN Co., Ltd. |
₩ |
₩ |
||||||
Epsilon Global Communications Pte. Ltd. |
After business combination |
2021 1 |
|||||||||||||||
(In millions of Korean won) |
Operating revenue |
Profit (loss) for the year |
Operating revenue |
Profit (loss) for the year |
||||||||||||
HCN Co., Ltd. |
₩ |
₩ |
₩ |
₩ |
||||||||||||
Epsilon Global Communications Pte. Ltd. |
( |
) | ( |
) |
1 |
Operating revenue and profit or loss of the entity for the current reporting period as though the acquisition date for all business combinations that occurred during the year had been as at the beginning of the annual reporting period. |
4 2 . |
Events After Reporting Period |
Type |
Issued date |
Face value ( I n millionsof Korean won) |
Interest rate |
Redemption date |
||||||||||||
The 196-1st Public bond |
₩ |
% | ||||||||||||||
The 196-2nd Public bond |
% | |||||||||||||||
The 196-3rd Public bond |
% |
KT CORPORATION | ||
(Registrant) | ||
/s/ HYEON-MO KU | ||
Name: Hyeon-Mo Ku | ||
Title: |
Representative Director and Chief Executive Officer |
1 |
Articles of Incorporation of KT Corporation (English translation) | |
2.1* |
Deposit Agreement dated as of May 25, 1999 entered into among KT Corporation, Citibank, N.A., as depositary, and all Holders and Beneficial Owners of American Depositary Shares evidenced by the American Depositary Receipts issued thereunder, including the form of American depositary receipt (incorporated herein by reference to Exhibit (a)(i) of the Registrant’s Registration Statement (Registration No. 333-13578) on Form F-6) | |
2.2* |
Form of Amendment No. 1 to Deposit Agreement dated as of May 25, 1999 entered into among KT Corporation, Citibank, N.A., as depositary, and all Holders and Beneficial Owners of American Depositary Shares evidenced by the American Depositary Receipts issued thereunder, including the form of American depositary receipt (incorporated herein by reference to Exhibit (a)(ii) of the Registrant’s Registration Statement (Registration No. 333-13578) on Form F-6) | |
2.3* |
Letter from Citibank, N.A., as depositary, to the Registrant relating to the establishment of a direct registration system for ADSs and the issuance of uncertified ADSs as part of the direct registration system (incorporated herein by reference to Exhibit 2.4 of the Registrant’s Annual Report on Form 20-F filed on June 30, 2008) | |
2.4 |
Description of common stock (see Item 10.B. Memorandum and Articles of Association) | |
2.5 |
Description of American Depositary Shares (incorporated herein by reference to Exhibit 2.6 of the Registrant’s Annual Report on Form 20-F filed on April 29, 2020) | |
8.1 |
List of subsidiaries of KT Corporation | |
12.1 |
Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | |
12.2 |
Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | |
13.1 |
Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | |
101.INS |
Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File as its XBRL tags are embedded within the Inline XBRL document. | |
101.SCH |
Inline XBRL Taxonomy Extension Schema Document | |
101.CAL |
Inline XBRL Taxonomy Extension Calculation Linkbase Document | |
101.DEF |
Inline XBRL Taxonomy Extension Definition Linkbase Document | |
101.LAB |
Inline XBRL Taxonomy Extension Label Linkbase Document | |
101.PRE |
Inline XBRL Taxonomy Extension Presentation Linkbase Document | |
104 |
The cover page for the Company’s Annual Report on Form 20-F for the year ended December 31, 2021, has been formatted in Inline XBRL |
* |
Filed previously. |
(P) |
Paper filing. |