KT Corporation provides integrated telecommunications and platform services in South Korea, rest of Asia, and internationally. The company offers mobile voice and ...
KT Corporation (KT) is one of South Korea’s leading telecommunications groups, historically known as Korea Telecom, and headquartered in the Seoul area. The company began operations in 1981 and has evolved from core telecom infrastructure into an integrated connectivity and digital-services provider. KT’s business is organized around delivering reliable network ...KT Corporation (KT) is one of South Korea’s leading telecommunications groups, historically known as Korea Telecom, and headquartered in the Seoul area. The company began operations in 1981 and has evolved from core telecom infrastructure into an integrated connectivity and digital-services provider. KT’s business is organized around delivering reliable network services (mobile, fixed-line, broadband, and data/leased-line connectivity), and monetizing those capabilities through platform and application offerings.
From a product and service perspective, KT provides mobile voice and data services leveraging modern cellular technologies such as 5G/4G and legacy platforms during transitions, alongside fixed-line telephone services including local, domestic and international long-distance offerings and VoIP-based telephony. It also operates broadband Internet access and offers enterprise and wholesale interconnection services. In the data communications domain, KT supplies fixed-line and leased-line services, as well as broadband connectivity tailored for corporate use.
KT extends beyond connectivity into media and content services such as IPTV, satellite TV, digital music, e-commerce, online advertising/consulting, and web-based digital content (e.g., web comics and novels). The company also participates in financial and related services, including credit card processing.
On the technology and enterprise side, KT offers information technology and network services, including system integration and maintenance, call center services, cloud system implementation, value-added network services, and data center development and related offerings. The company is also involved in satellite and related services, as well as installation and management activities and infrastructure-type projects such as submarine cable construction and maintenance.
Operationally, KT is a large employer (reported full-time employees around 14.7k), indicating significant workforce coverage across networks, customer operations, and enterprise/ICT delivery. As a telecommunications operator, its cost structure is typically shaped by network capital expenditures (CAPEX) and ongoing operating expenses for maintenance, spectrum/network operations, and customer service, alongside investment in platform and digital capabilities. Financially, market valuation metrics and profitability ratios reported in public market datasets indicate a business with ongoing cash generation, with free-cash-flow yield and operating margins reflecting a mature, asset-intensive telecom model.
Key people include CEO Kim Young Shub (leadership shown in recent disclosures), responsible for steering KT through telecom modernization, platformization, and technology investment priorities. KT’s “wishes” and strategic direction, inferred from its positioning as an AI/AX platform-focused communications company, center on strengthening next-generation connectivity, leveraging data and AI to improve network performance and customer experience, and expanding higher-value ICT and platform services alongside traditional telecom revenues.
Operator: Good morning, and good evening. Thank you all for joining this conference call. And now we will begin the conference of the First Quarter of Fiscal Year 2026 Earnings results by KT. We would like to have welcoming remarks from KT IRO, and then CFO will present earnings results and entertain your questions. This conference will start with a presentation followed by a Q&A session. Now we would like to turn the conference over to KT IRO.
Sun Wook Kim: Good afternoon. I am Sun Wook Kim, IRO of KT. We will now begin the earnings presentation for the first quarter of 2026. Please note that today's presentation includes estimates of financial and operating performance based on K-IFRS that have not been reviewed by an outside auditor. As such, other than confirmed historical data, we cannot guarantee the accuracy and completeness of financial and business-related information and such information is subject to change in the future. Now Hye-Byung Min, CFO of KT will present the 2026 Q1 earnings.
Hye-Byung Min: Good afternoon. I am Hye-Byung Min, CFO of KT. In Q1, KT reorganized the company's growth strategy and implementation system based on stable transition of the management and business structure and developed a new midterm shareholder return policy to solidify the foundation for corporate value enhancement. KT will evolve to become an AX platform company that leads the AI innovation of Korea. AX innovation will be a springboard for our next leap forward. First, we will make utmost effort to regain customer trust while also strengthening our core businesses by innovating information security, network and IT infrastructure. Second, we plan to secure solid growth drivers with AX innovation-based success models such as sector-specific AX, hyper-personalized AX and new growth AX. At the same time, we will continue to seamlessly implement our corporate value up plan. In order to ensure continuity, the new midterm shareholder return policy effective from 2026 to 2028 will be equivalent to the previous policy of using 50% of stand-alone adjusted net income as resources for shareholder return. For 2026, the annual dividend per share will be a minimum of KRW 2,400 and the dividend per share for Q1 will be KRW 600. The record date is May 27 and payment date is June 11. Also, as part of our corporate value up plan for 2026, the share buyback program of KRW 250 billion will be completed by September. Next, the performance and future plan of each business division will be presented by the respective division heads before we dive into the Q1 results.
Hyun-Jin Park: Good afternoon. I am Hyun-Jin Park, Head of the Customer Business Group. The B2C business in January experienced temporary decline in both wireless and fixed line subscribers because of the early termination penalty waiver program. However, since February, we are observing a net increase in the number of subscribers. The related sales expense, which increased last year should weigh on this …