Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16]

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 OF

THE SECURITIES EXCHANGE ACT OF 1934

For the month of May 2024

Commission File Number 1-14926

KT Corporation

(Translation of registrant’s name into English)

90, Buljeong-ro,

Bundang-gu, Seongnam-si,

Gyeonggi-do,

Korea

(Address of principal executive offices)

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

Form 20-F ☒ Form 40-F ☐

SIGNATURES

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


Dated: May 24, 2024
KT Corporation

By:		/s/ Youngkyoon Yun
Name: Youngkyoon Yun
Title: Vice President

By:		/s/ Sanghyun Cho
Name: Sanghyun Cho
Title: Director

KT Corporation and Subsidiaries

Consolidated Interim Financial Statements

March 31, 2024 and 2023

KT Corporation and Subsidiaries

Index

March 31, 2024 and 2023


		Page(s)

Report on Review of Interim Financial Statements		1 – 2

Consolidated Interim Financial Statements

Consolidated Interim Statements of Financial Position		3 – 4

Consolidated Interim Statements of Profit or Loss		5

Consolidated Interim Statements of Comprehensive Income		6

Consolidated Interim Statements of Changes in Equity		7 – 8

Consolidated Interim Statements of Cash Flows		9 – 10

Notes to the Consolidated Interim Financial Statements		11 – 73

LOGO

Deloitte Anjin LLC

9F., One IFC,

10, Gukjegeumyung-ro,

Youngdeungpo-gu, Seoul

07326, Korea

Tel: +82 (2) 6676 1000

Fax: +82 (2) 6674 2114

www.deloitteanjin.co.kr

Independent Auditor’s Review Report

[English Translation of Independent Auditor’s Review Report Originally Issued in Korean on May 16, 2024]

To the Shareholders and the Board of Directors of KT Corporation.

Reviewed Consolidated Interim Financial Statements

We have reviewed the accompanying consolidated interim financial statements of KT Corporation and its subsidiaries (the “Group”). The consolidated interim financial statements consist of the consolidated statement of financial position as of March 31, 2024, and the related consolidated statements of profit or loss, comprehensive income, changes in equity and cash flows for the three-month periods ended March 31, 2024 and 2023, all expressed in Korean won, and a summary of significant accounting policies and other explanatory information.

Management’s Responsibility for the Consolidated Interim Financial Statements

Management is responsible for the preparation and fair presentation of these consolidated interim financial statements in accordance with Korean International Financial Reporting Standards (“K-IFRS”) No. 1034 Interim Financial Reporting, and for such internal control as management determines is necessary to enable the preparation of consolidated interim financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express a conclusion on the accompanying consolidated interim financial statements based on our reviews.

We conducted our reviews in accordance with the Review Standards for Quarterly and Semi-annual Financial Statements established by the Securities and Futures Commission of the Republic of Korea. A review of consolidated interim financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Korean Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our reviews, nothing has come to our attention that causes us to believe that the accompanying consolidated interim financial statements referred to above do not present fairly, in all material respects, the financial position as of March 2024 and its financial performance and its cash flows for the three-month periods ended March 2024 in accordance with K-IFRS No.1034 Interim Financial Reporting.

LOGO

Other Matters

We have audited the consolidated statement of financial position as of December 31, 2023, and the related consolidated statement of profit or loss, consolidated statement of comprehensive income, consolidated statement of changes in equity and cash flows for the year then ended, which are not accompanying this report, in accordance with Korean Standards on Auditing. We expressed an unqualified opinion on those consolidated financial statements in our audit report dated March 18, 2024. The accompanying consolidated statement of financial position as of December 31, 2023, presented for comparative purposes, is not different from the audited consolidated statement of financial position above in all material respects.

Seoul, Korea

May 16, 2024

Notice to Readers

This review report is effective as of May 16, 2024, the auditor’s review report date. Certain subsequent events or circumstances may have occurred between the auditor’s review report date and the time the auditor’s review report is read. Such events or circumstances could significantly affect the financial statements and may result in modifications to the auditor’s review report.

KT Corporation and Subsidiaries

Consolidated Interim Statements of Financial Position

March 31, 2024 and December 31, 2023


(in millions of Korean won)	Notes		March 31, 2024		December 31, 2023
Assets

Current assets
Cash and cash equivalents		4,29	W	3,000,687	W	2,879,554
Trade and other receivables, net		4,5,29		7,363,529		7,170,289
Other financial assets		4,6,29		1,471,688		1,440,200
Current tax assets				3,185		3,299
Inventories, net		7		899,137		912,262
Other current assets		8		2,259,146		2,112,553

Total current assets				14,997,372		14,518,157

Non-current assets
Trade and other receivables, net		4,5,29		1,348,557		1,404,168
Other financial assets		4,6,29		2,815,651		2,724,761
Property and equipment, net		9		14,585,722		14,872,079
Right-of-use assets		16		1,263,040		1,304,963
Investment properties, net		9		2,186,404		2,198,135
Intangible assets, net		9		2,406,379		2,533,861
Investments in associates and joint ventures		10		1,571,489		1,556,889
Deferred tax assets				615,529		608,924
Net defined benefit assets		14		107,795		160,748
Other non-current assets		8		812,071		827,297

Total non-current assets				27,712,637		28,191,825

Total assets			W	42,710,009	W	42,709,982

(Continued)

See accompanying notes to the consolidated interim financial statements.

KT Corporation and Subsidiaries

Consolidated Interim Statements of Financial Position

March 31, 2024 and December 31, 2023


(in millions of Korean won)	Notes		March 31, 2024			December 31, 2023
Liabilities

Current liabilities
Trade and other payables		4,11,29	W	8,282,447		W	8,054,922
Borrowings		4,12,29		3,538,571			3,058,564
Other financial liabilities		4,6,29		346,645			322,099
Current tax liabilities				216,898			236,463
Provisions		13,15		108,575			115,209
Deferred income		19		49,603			51,537
Other current liabilities		8		1,503,363			1,308,615

Total current liabilities				14,046,102			13,147,409

Non-current liabilities
Trade and other payables		4,11,29		554,092			819,558
Borrowings		4,12,29		6,612,819			7,159,601
Other financial liabilities		4,6,29		698,936			753,739
Net defined benefit liabilities		14		68,322			63,616
Provisions		13,15		107,661			107,014
Deferred income		19		150,272			153,563
Deferred tax liabilities				1,047,237			994,330
Other non-current liabilities		4,8,16		842,399			950,015

Total non-current liabilities				10,081,738			11,001,436

Total liabilities				24,127,840			24,148,845

Equity
Share capital				1,564,499			1,564,499
Share premium				1,440,258			1,440,258
Retained earnings		17		14,361,473			14,494,430
Accumulated other comprehensive income				182,837			52,407
Other components of equity		18		(797,432	)		(802,418	)

				16,751,635			16,749,176

Non-controlling interests				1,830,534			1,811,961

Total equity				18,582,169			18,561,137

Total liabilities and equity			W	42,710,009		W	42,709,982

(Concluded)

See accompanying notes to the consolidated interim financial statements.

KT Corporation and Subsidiaries

Consolidated Interim Statements of Profit or Loss

Three-Month Periods Ended March 31, 2024 and 2023


			Three-Month Period Ended March 31
(in millions of Korean won, except per share amounts)	Notes		2024		2023

Operating revenue		19	W	6,654,574	W	6,443,676
Operating expenses		20		6,148,074		5,957,571

Operating profit				506,500		486,105
Other income		21		72,838		68,986
Other expenses		21		70,372		60,237
Finance income		22		250,276		173,334
Finance costs		22		240,492		226,781
Share of net profits (losses) of associates and joint ventures		10		10,238		(3,805	)

Profit before income tax expense				528,988		437,602
Income tax expense		23		135,985		127,974

Profit for the period			W	393,003	W	309,628

Profit attributable to:
Owners of the Controlling Company:			W	375,530	W	296,614
Non-controlling interest:				17,473		13,014

Earnings per share attributable to the equity holders of the Controlling Company during the period (in Korean won):		24
Basic earnings per share			W	1,524	W	1,159
Diluted earnings per share				1,523		1,158

See accompanying notes to the consolidated interim financial statements.

KT Corporation and Subsidiaries

Consolidated Interim Statements of Comprehensive Income

Three-Month Periods Ended March 31, 2024 and 2023


			Three-Month Period Ended March 31
(in millions of Korean won)	Notes		2024			2023

Profit for the period			W	393,003		W	309,628

Other comprehensive income
Items that will not be reclassified to profit or loss:
Remeasurements of the net defined benefit liabilities		14		603			(5,410	)
Share of remeasurement of the net defined benefit liabilities of associates and joint ventures				(95	)		1,068
Gain on valuation of equity instruments at fair value through other comprehensive income		6		113,455			72,817
Items that may be subsequently reclassified to profit or loss:
Valuation gains on cash flow hedges		6		82,753			56,596
Other comprehensive loss from cash flow hedges reclassified to profit or loss				(86,721	)		(67,025	)
Share of other comprehensive income from associates and joint ventures				614			8,839
Exchange differences on translation of foreign operations				45,726			7,477


Other comprehensive income for the period, net of tax				156,335			74,362

Total comprehensive income for the period			W	549,338		W	383,990

Total comprehensive income is attributable to:
Owners of the Controlling Company			W	507,543		W	365,523
Non-controlling interests				41,795			18,467

See accompanying notes to the consolidated interim financial statements.

KT Corporation and Subsidiaries

Consolidated Interim Statements of Changes in Equity

Three-Month Periods Ended March 31, 2024 and 2023


			Attributable to owners of the Controlling Company
(in millions of Korean won)	Notes		Share capital		Share premium		Retained earnings			Accumulated other comprehensive income (loss)			Other components of equity			Total			Non- controlling interest			Total equity

Balance as of January 1, 2023			W	1,564,499	W	1,440,258	W	14,257,343		W	(77,776	)	W	(572,152	)	W	16,612,172		W	1,802,551		W	18,414,723
Comprehensive income
Profit for the period				—		—		296,614			—			—			296,614			13,014			309,628
Remeasurements of net defined benefit liabilities		14		—		—		(691	)		—			—			(691	)		(4,719	)		(5,410	)
Share of remeasurement of the net defined benefit liabilities of associates and joint ventures				—		—		1,055			—			—			1,055			13			1,068
Share of other comprehensive loss of associates and joint ventures				—		—		—			6,237			—			6,237			2,602			8,839
Valuation loss on cash flow hedge		6		—		—		—			(9,997	)		—			(9,997	)		(432	)		(10,429	)
Gain on valuation of financial assets at fair value through other comprehensive income				—		—		224			72,421			—			72,645			172			72,817
Exchange differences on translation of foreign operations				—		—		—			(340	)		—			(340	)		7,817			7,477

Total comprehensive income for the period				—		—		297,202			68,321			—			365,523			18,467			383,990

Transactions with owners
Dividends paid by the Controlling Company				—		—		(501,843	)		—			—			(501,843	)		—			(501,843	)
Dividends paid to non-controlling interest of subsidiaries				—		—		—			—			—			—			(24,441	)		(24,441	)
Change in ownership interest in subsidiaries				—		—		—			—			741			741			(2,994	)		(2,253	)
Appropriations of loss on disposal of treasury stock				—		—		(44,422	)		—			44,422			—			—			—
Acquisition of treasury stock				—		—		—			—			(121,975	)		(121,975	)		—			(121,975	)
Others				—		—		—			—			2,770			2,770			1,009			3,779

Subtotal				—		—		(546,265	)		—			(74,042	)		(620,307	)		(26,426	)		(646,733	)

Balance at March 31, 2023			W	1,564,499	W	1,440,258	W	14,008,280		W	(9,455	)	W	(646,194	)	W	16,357,388		W	1,794,592		W	18,151,980

See accompanying notes to the consolidated interim financial statements.

KT Corporation and Subsidiaries

Consolidated Interim Statements of Changes in Equity

Three-Month Periods Ended March 31, 2024 and 2023


			Attributable to owners of the Controlling Company
(in millions of Korean won)	Notes		Share capital		Share premium		Retained earnings			Accumulated other comprehensive income (loss)			Other components of equity			Total			Non- controlling interest			Total equity

Balance as of January 1, 2024			W	1,564,499	W	1,440,258	W	14,494,430		W	52,407		W	(802,418	)	W	16,749,176		W	1,811,961		W	18,561,137
Comprehensive income
Profit for the period				—		—		375,530			—			—			375,530			17,473			393,003
Remeasurements of net defined benefit liabilities		14		—		—		1,685			—			—			1,685			(1,082	)		603
Share of remeasurement of the net defined benefit liabilities of associates and joint ventures				—		—		(81	)		—			—			(81	)		(14	)		(95	)
Share of other comprehensive loss of associates and joint ventures				—		—		—			580			—			580			34			614
Valuation loss on cash flow hedge		6		—		—		—			(4,126	)		—			(4,126	)		158			(3,968	)
Gain on valuation of financial assets at fair value through other comprehensive income				—		—		(21	)		113,247			—			113,226			229			113,455
Exchange differences on translation of foreign operations				—		—		—			20,729			—			20,729			24,997			45,726

Total comprehensive income for the period				—		—		377,113			130,430			—			507,543			41,795			549,338

Transactions with owners
Dividends paid by the Controlling Company				—		—		(482,970	)		—			—			(482,970	)		—			(482,970	)
Dividends paid to non-controlling interest of subsidiaries				—		—		—			—			—			—			(20,600	)		(20,600	)
Change in ownership interest in subsidiaries				—		—		—			—			291			291			(811	)		(520	)
Acquisition of treasury stock				—		—		—			—			(27,100	)		(27,100	)		—			(27,100	)
Retirement of treasury stocks				—		—		(27,100	)		—			27,100			—			—			—
Others				—		—		—			—			4,695			4,695			(1,811	)		2,884

Subtotal				—		—		(510,070	)		—			4,986			(505,084	)		(23,222	)		(528,306	)

Balance at March 31, 2024			W	1,564,499	W	1,440,258	W	14,361,473		W	182,837		W	(797,432	)	W	16,751,635		W	1,830,534		W	18,582,169

(Concluded)

See accompanying notes to the consolidated interim financial statements.

KT Corporation and Subsidiaries

Consolidated Interim Statements of Cash Flows

Three-Month Periods Ended March 31, 2024 and 2023


			Three-Month Period Ended March 31
(in millions of Korean won)	Notes		2024			2023
Cash flows from operating activities
Cash generated from operations		25	W	1,169,061		W	1,060,791
Interest paid				(122,818	)		(108,887	)
Interest received				92,869			85,084
Dividends received				2,585			2,850
Income tax paid				(27,430	)		(125,609	)

Net cash inflow from operating activities				1,114,267			914,229

Cash flows from investing activities
Collection of loans				9,512			11,246
Disposal of financial assets at fair value through profit or loss				36,777			45,678
Disposal of financial assets at amortized cost				507,212			236,071
Disposal of financial assets at fair value through other comprehensive income				1,631			300
Disposal of investments in associates and joint ventures				2,100			1,050
Disposal of property, equipment and investment properties				21,068			8,640
Disposal of intangible assets				1,514			1,814
Disposal of right-of-use assets				76			364
Disposal of derivatives				—			4,888
Loans granted				(6,711	)		(11,293	)
Acquisition of financial assets at fair value through profit or loss				(73,496	)		(7,974	)
Acquisition of financial assets at amortized cost				(293,822	)		(380,501	)
Acquisition of investments in associates and joint ventures				(6,700	)		(10,136	)
Acquisition of property and equipment and investment properties				(563,704	)		(1,040,575	)
Acquisition of intangible assets				(308,426	)		(370,747	)
Acquisition of right-of-use assets				(2,544	)		(416	)
Decrease in cash due to business combination				—			(3,134	)

Net cash outflow from investing activities				(675,513	)		(1,514,725	)

(Continued)

See accompanying notes to the consolidated interim financial statements.

KT Corporation and Subsidiaries

Consolidated Interim Statements of Cash Flows

Three-Month Periods Ended March 31, 2024 and 2023


			Three-Month Period Ended March 31
(in millions of Korean won)	Notes		2024			2023
Cash flows from financing activities		26
Proceeds from borrowings				866,617			1,043,904
Cash inflow from consolidated capital transactions				200			—
Cash inflow from other financing activities				66			75
Repayments of borrowings				(1,061,640	)		(571,569	)
Dividends paid				(15	)		—
Decrease in finance lease liabilities				(97,006	)		(89,366	)
Acquisition of treasury stock				(27,100	)		(121,975	)
Transactions with non-controlling interest				(520	)		(2,407	)
Cash outflow from consolidated equity transaction				(36	)		—

Net cash inflow (outflow) from financing activities				(319,434	)		258,662

Effect of exchange rate change on cash and cash equivalents				1,813			2,000


Net increase (decrease) in cash and cash equivalents				121,133			(339,834	)

Cash and cash equivalents
Beginning of the period				2,879,554			2,449,062

End of the period			W	3,000,687		W	2,109,228

(Concluded)

See accompanying notes to the consolidated interim financial statements.

KT Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

As of March 31, 2024 and 2023, and December 31, 2023

1.	General Information

The consolidated financial statements have been prepared by KT Corporation, the “Controlling company” as defined under Korean IFRS 1110 Consolidated Financial Statements, by consolidating 84 subsidiaries (collectively referred to as the “Group”) including BC Card Co., Ltd., etc. as described in Note 1.2

1.1

The Controlling Company

KT Corporation (the “Controlling Company”) commenced operations on January 1, 1982, when it spun off from the Korea Communications Commission (formerly the Korean Ministry of Information and Communications) to provide telecommunication services and to engage in the development of advanced communications services under the Act of Telecommunications of Korea. The headquarters are located in Seongnam City, Gyeonggi Province, Republic of Korea, and the address of its registered head office is 90, Buljeong-ro, Bundang-gu, Seongnam City, Gyeonggi Province.

On October 1, 1997, upon the announcement of the Government-Investment Enterprises Management Basic Act and the Privatization Law, the Controlling Company became a government-funded institution under the Commercial Code of Korea.

On December 23, 1998, the Controlling Company’s shares were listed on the Korea Exchange.

On May 29, 1999, the Controlling Company issued 24,282,195 additional shares and issued American Depository Shares (ADS), which represents new shares and 20,813,311 government-owned shares, on the New York Stock Exchange. On July 2, 2001, additional ADS representing 55,502,161 government-owned shares were issued on the New York Stock Exchange.

In 2002, the Controlling Company acquired the entire government-owned shares in accordance with the Korean government’s privatization plan. As of March 31, 2024, the Korean government does not own any shares in the Controlling Company.

KT Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

As of March 31, 2024 and 2023, and December 31, 2023

1.2

Consolidated Subsidiaries

(1)

The consolidated subsidiaries as of March 31, 2024 and December 31, 2023, are as follows:


			Controlling Interest ¹(%)
Subsidiary	Type of business	Location	March 31, 2024			December 31, 2023			Closing month

KT Linkus Co., Ltd.	Public telephone maintenance	Korea		92.4	%		92.4	%	December
KT Telecop Co., Ltd.	Security service	Korea		86.8	%		86.8	%	December
KT Alpha Co., Ltd.⁵	Data communication	Korea		73.0	%		73.0	%	December
KT Service Bukbu Co., Ltd	Opening services of fixed line	Korea		67.3	%		67.3	%	December
KT Service Nambu Co., Ltd.	Opening services of fixed line	Korea		77.3	%		77.3	%	December
KT Commerce Inc.	B2C, B2B service	Korea		100.0	%		100.0	%	December
KT Strategic Investment Fund No.3	Investment fund	Korea		100.0	%		100.0	%	December
KT Strategic Investment Fund No.4	Investment fund	Korea		100.0	%		100.0	%	December
KT Strategic Investment Fund No.5	Investment fund	Korea		100.0	%		100.0	%	December
BC-VP Strategic Investment Fund No.1	Investment fund	Korea		100.0	%		100.0	%	December
BC Card Co., Ltd.	Credit card business	Korea		69.5	%		69.5	%	December
VP Inc. ⁵	Payment security service for credit card, others	Korea		72.2	%		72.2	%	December
H&C Network	Call center for financial sectors	Korea		100.0	%		100.0	%	December
BC Card China Co., Ltd.	Software development and data processing	China		100.0	%		100.0	%	December
INITECH Co., Ltd. ⁵	Internet banking ASP and security solutions	Korea		64.5	%		63.9	%	December
Smartro Co., Ltd.	VAN (Value Added Network) business	Korea		64.5	%		64.5	%	December
KTDS Co., Ltd. ⁵	System integration and maintenance	Korea		91.6	%		91.6	%	December
KT M&S Co., Ltd.	PCS distribution	Korea		100.0	%		100.0	%	December
GENIE Music Corporation ^2,	Online music production and distribution	Korea		36.0	%		36.0	%	December
KT MOS Bukbu Co., Ltd. ⁵	Telecommunication facility maintenance	Korea		100.0	%		100.0	%	December
KT MOS Nambu Co., Ltd. ⁵	Telecommunication facility maintenance	Korea		98.4	%		98.4	%	December
KT Skylife ⁵	Satellite TV	Korea		50.6	%		50.6	%	December
Skylife TV Co., Ltd.	TV contents provider	Korea		100.0	%		100.0	%	December
KT Estate Inc.	Residential building development and supply	Korea		100.0	%		100.0	%	December
KT Investment Management Inc.	Asset management, real estate and consulting services	Korea		100.0	%		100.0	%	December
NEXR Co., Ltd.	Cloud system implementation	Korea		100.0	%		100.0	%	December
KTGDH Co., Ltd.	Data center development and related service	Korea		100.0	%		100.0	%	December
KT Sat Co., Ltd.	Satellite communication business	Korea		100.0	%		100.0	%	December
Nasmedia, Co., Ltd. ^2,5	Solution provider and IPTV advertisement sales business	Korea		44.1	%		44.1	%	December
KT Sports Co., Ltd.	Management of sports teams	Korea		100.0	%		100.0	%	December
KT Music Contents Fund No.2	Music and contents investment business	Korea		100.0	%		100.0	%	December
KTCS Corporation ^2,5	Database and online information provider	Korea		34.1	%		34.1	%	December
KTIS Corporation ^2,5	Database and online information provider	Korea		33.3	%		33.3	%	December

KT Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

As of March 31, 2024 and 2023, and December 31, 2023


			Controlling Interest ¹(%)
Subsidiary	Type of business	Location	March 31, 2024			December 31, 2023			Closing month

KT M Mobile Co., Ltd.	Special category telecommunications operator and sales of communication device	Korea		100.0	%		100.0	%	December
KT Investment Co., Ltd.	Financing business for new technology	Korea		100.0	%		100.0	%	December
PlayD Co., Ltd.	Advertising agency	Korea		70.4	%		70.4	%	December
Next Connect PFV	Residential building development and supply	Korea		100.0	%		100.0	%	December
KT Rwanda Networks Ltd.	Network installation and management	Rwanda		51.0	%		51.0	%	December
AOS Ltd.	System integration and maintenance	Rwanda		51.0	%		51.0	%	December
KT Japan Co., Ltd.	Foreign investment business and local counter work	Japan		100.0	%		100.0	%	December
East Telecom LLC	Wireless/fixed line internet business	Uzbekistan		91.6	%		91.6	%	December
KT America, Inc.	Foreign investment business and local counter work	USA		100.0	%		100.0	%	December
PT. BC Card Asia Pacific	Software development and supply	Indonesia		99.9	%		99.9	%	December
KT Hongkong Telecommunications Co., Ltd.	Fixed line telecommunication business	Hong Kong		100.0	%		100.0	%	December
Korea Telecom Singapore Pte. Ltd.	Foreign investment business and local counter work	Singapore		100.0	%		100.0	%	December
Texnoprosistem LLC	Fixed line internet business	Uzbekistan		100.0	%		100.0	%	December
Nasmedia Thailand Co., Ltd.	Internet advertising solution	Thailand		99.9	%		99.9	%	December
KT Huimangjieum	Manufacturing	Korea		100.0	%		100.0	%	December
K-REALTY RENTAL HOUSING REIT 3	Residential building	Korea		88.6	%		88.6	%	December
Storywiz Co., Ltd.	Contents and software development and supply	Korea		100.0	%		100.0	%	December
KT Engineering Co., Ltd.	Telecommunication facility construction and maintenance	Korea		100.0	%		100.0	%	December
KT Studio Genie Co., Ltd.	Data communication service and data communication construction business	Korea		90.9	%		90.9	%	December
KHS Corporation	Operation and maintenance of facilities	Korea		100.0	%		100.0	%	December
Lolab Co., Ltd.	Truck transportation and trucking arrangement business	Korea		79.8	%		79.8	%	December
HCN Co., Ltd.	Cable television service	Korea		100.0	%		100.0	%	December
Millie Seojae ²	Book contents service	Korea		30.2	%		30.2	%	December
KT ES Pte. Ltd.	Foreign investment business	Singapore		57.6	%		57.6	%	December
Epsilon Global Communications PTE. Ltd.	Network service industry	Singapore		100.0	%		100.0	%	December
Epsilon Telecommunications (SP) PTE. Ltd.	Fixed line telecommunication business	Singapore		100.0	%		100.0	%	December
Epsilon Telecommunications (US) PTE. Ltd.	Fixed line telecommunication business	Singapore		100.0	%		100.0	%	December
Epsilon Telecommunications Limited	Fixed line telecommunication business	UK		100.0	%		100.0	%	December
Epsilon Telecommunications (HK) Limited	Fixed line telecommunication business	Hong Kong		100.0	%		100.0	%	December
Epsilon US Inc.	Fixed line telecommunication business	USA		100.0	%		100.0	%	December
Epsilon Telecommunications (BG) EOOD	Employee support service	Bulgaria		100.0	%		100.0	%	December

KT Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

As of March 31, 2024 and 2023, and December 31, 2023


			Controlling Interest ¹(%)
Subsidiary	Type of business	Location	March 31, 2024			December 31, 2023			Closing month

Nasmedia-KT Alpha Future Growth Strategic Investment Fund	Investment fund	Korea		100.0	%		100.0	%	December
KT Strategic Investment Fund 6	Investment fund	Korea		100.0	%		100.0	%	December
Altimedia Corporation	Software development and delivery	Korea		100.0	%		100.0	%	December
Altimidia B.V.	Software development and delivery	Netherlands		100.0	%		100.0	%	December
Altimidia Vietnam	Software development and delivery	Vietnam		100.0	%		100.0	%	December
BCCARD VIETNAM LTD.	Software sales business	Vietnam		100.0	%		100.0	%	December
KTP SERVICES INC.	Fixed line telecommunication business	Philippines		100.0	%		100.0	%	December
KT RUS LLC	Foreign investment business	Russia		100.0	%		100.0	%	December
Hangang Real Estate Investment Trust No. 24	Investment fund	Korea		75.0	%		75.0	%	December
KT DX Vietnam Company Limited	Software development	Vietnam		100.0	%		100.0	%	December
KT Cloud Co., Ltd.	Information and communications development	Korea		92.7	%		92.7	%	December
Pocheon Jeonggyori Development Co., Ltd.	Residential building development	Korea		80.9	%		80.9	%	December
PT CRANIUM ROYAL ADITAMA	Software development	Indonesia		67.0	%		67.0	%	December
Juice Inc.^3,5	Online information provider/Software development and delivery	Korea		41.9	%		42.6	%	December
Open cloud lab Co., Ltd	IT consulting service and Telecommunication equipment sales	Korea		100.0	%		100.0	%	December
KD Living, Inc.	Residential building management	Korea		100.0	%		100.0	%	December
KT HEALTHCARE VINA COMPANY LIMITED	Medical service	Vietnam		100.0	%		100.0	%	December
K-Realty Qualified Private Real Estate Investment Trust No. 1 ⁴	Real estate management	Korea		6.5	%		6.5	%	December
AQUA RETAIL VIETNAM COMPANY LIMITED	E-voucher issuance and trading business	Vietnam		100.0	%		100.0	%	December
K-Realty Qualified Private Real Estate Investment Trust No. 4	Real estate management	Korea		93.9	%		93.9	%	December

¹	Sum of the interests owned by the Controlling Company and subsidiaries.

Although the Controlling Company owns less than 50% interest in Nasmedia, Co., Ltd., KTCS Corporation and KTIS Corporation, Millie Seojae, and GENIE Music Corporation, considering voting patterns at previous shareholders’ meetings, these entities are consolidated as the Controlling Company can exercise the majority of the voting rights in its decision-making process at all times.

³	Although the Controlling Company owns less than 50% interest in, Juice Inc., this entity is consolidated as the Controlling Company holds the majority of the voting right based on an agreement with other investors.

⁴

Although the Controlling Company owns less than 50% interest in K-Realty Qualified Private Real Estate Investment Trust No. 1, these entities are consolidated by comprehensively considering the criteria for determining control, such as ‘power’, ‘variable profit’, and ‘relationship between power and variable profit’, rather than simply judging by the interests owned by the company.

⁵	The number of treasury stocks held by subsidiaries are deducted from the total number of shares when calculating the controlling percentage interest.

(2)

Changes in Scope of Consolidation

There is no change in the scope of consolidation during the three-month period ended March 31, 2024

KT Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

As of March 31, 2024 and 2023, and December 31, 2023

(3)

Summarized information for consolidated subsidiaries as of March 31, 2024 and December 31, 2023 and for the three-month periods ended March 31, 2024 and 2023, is as follows


(in millions of Korean won)	March 31, 2024				Three-month period ended March 31, 2024 ³
	Total assets		Total liabilities		Operating revenues		Profit (loss) for the period

KT Linkus Co., Ltd.	W	56,722	W	58,104	W	19,546	W	(2,164	)
KT Telecop Co., Ltd.		386,163		244,554		130,834		2,233
KT Alpha Co., Ltd.		420,032		165,342		106,464		10,669
KT Service Bukbu Co., Ltd.		58,314		52,219		56,182		(2,304	)
KT Service Nambu Co., Ltd.		64,217		53,208		71,007		(1,822	)
BC Card Co., Ltd. ¹		6,228,927		4,554,561		935,556		49,963
H&C Network		82,849		4,925		6,992		560
Nasmedia Co., Ltd. ¹		468,016		221,659		32,075		3,279
KTDS Co., Ltd. ¹		361,466		165,922		156,295		9,993
KT M&S Co., Ltd.		239,671		185,256		236,260		5,014
KT MOS Bukbu Co., Ltd.		47,192		25,152		23,340		(278	)
KT MOS Nambu Co., Ltd.		43,503		21,897		23,906		779
KT Skylife Co., Ltd. ¹		1,193,107		470,863		254,401		1,266
KT Estate Inc. ¹		2,653,191		1,013,824		135,739		4,752
KT GDH Co., Ltd.		7,789		1,389		1,041		140
KT Sat Co., Ltd.		729,121		109,127		43,946		8,942
KT Sports Co., Ltd.		33,991		22,903		14,105		(4,224	)
KT Music Contents Fund No.2		5,320		1,522		34		12
KT M Mobile Co., Ltd.		178,904		68,222		82,263		3,173
KT Investment Co., Ltd. ¹		87,320		60,024		4,930		1,078
KTCS Corporation ¹		435,344		234,829		265,455		6,263
KTIS Corporation		477,588		274,391		145,328		3,368
Next Connect PFV		1,036,258		720,950		—		(1,570	)
KT Japan Co., Ltd. ¹		1,860		3,007		781		138
KT America, Inc.		6,183		628		1,889		38
KT Rwanda Networks Ltd. ²		103,059		287,699		5,195		(696	)
AOS Ltd. ²		11,645		16,960		2,492		385
KT Hong Kong Telecommunications Co., Ltd.		11,293		4,803		5,065		170
KT Huimangjieum ¹		8,334		2,327		4,656		649
KT Engineering Co., Ltd.		106,144		52,485		48,224		(3,647	)
KT Studio Genie Co., Ltd. ¹		951,369		219,502		106,511		1,605
Lolab Co., Ltd.		42,689		39,141		46,536		(1,358	)
East Telecom LLC ¹		56,604		25,894		7,779		2,353

KT Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

As of March 31, 2024 and 2023, and December 31, 2023


(in millions of Korean won)	March 31, 2024				Three-month period ended March 31, 2024 ³
	Total assets		Total liabilities		Operating revenues		Profit (loss) for the period

KT ES Pte. Ltd. ¹		124,758		101,030		23,020		(4,568	)
KTP SERVICES INC.		2,940		634		298		214
Altimedia Corporation ¹		46,029		12,771		8,199		(173	)
KT RUS LLC		441		—		—		(49	)
KT DX Vietnam Company Limited		1,582		62		30		(105	)
KT Cloud Co., Ltd. ¹		1,989,237		505,016		175,188		3,095
KT Healthcare Vina Co., Ltd.		15,876		3,716		—		(384	)
K-Realty Qualified Private Real Estate Investment Trust No. 1		79,859		50,801		881		(516	)
AQUA RETAIL VIETNAM COMPANY LIMITED		1,022		88		191		(228	)

¹	As intermediate controlling companies, financial information from their consolidated financial statements is presented.

²	Convertible preferred stock issued by subsidiaries as of the end of the reporting period is included in liabilities.

³	Profit or loss from the date of acquisition of control to the end of the reporting period is included.

KT Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

As of March 31, 2024 and 2023, and December 31, 2023


(in millions of Korean won)	March 31, 2023				Three-month period ended March 31, 2023 ³
	Total assets		Total liabilities		Operating revenues		Profit (loss) for the period

KT Linkus Co., Ltd.	W	64,178	W	63,452	W	19,652	W	915
KT Telecop Co., Ltd.		375,596		235,947		129,184		1,735
KT Alpha Co., Ltd.		443,639		191,254		107,385		3,771
KT Service Bukbu Co., Ltd.		63,760		55,360		58,214		(237	)
KT Service Nambu Co., Ltd.		71,576		58,745		70,544		(627	)
BC Card Co., Ltd. ¹		6,352,878		4,722,432		953,163		(1,318	)
H&C Network		81,107		4,863		6,826		508
Nasmedia Co., Ltd. ¹		513,311		262,336		32,105		2,857
KTDS Co., Ltd. ¹		393,667		202,067		162,891		9,764
KT M&S Co., Ltd.		258,477		209,075		173,184		555
KT MOS Bukbu Co., Ltd.		50,750		28,431		23,779		2,919
KT MOS Nambu Co., Ltd.		46,839		26,012		23,670		1,553
KT Skylife Co., Ltd. ¹		1,220,842		479,369		254,787		7,645
KT Estate Inc. ¹		2,664,880		1,021,741		112,812		(1,228	)
KT GDH Co., Ltd.		7,760		1,501		1,122		174
KT Sat Co., Ltd.		699,607		88,524		42,289		7,693
KT Sports Co., Ltd.		26,615		11,299		8,239		(7,816	)
KT Music Contents Fund No.2		5,558		1,772		138		60
KT M Mobile Co., Ltd.		176,838		69,317		71,684		2,344
KT Investment Co., Ltd. ¹		83,638		57,420		12,884		2,782
KTCS Corporation ¹		434,900		234,850		214,943		4,111
KTIS Corporation		447,609		243,519		142,720		4,616
Next Connect PFV		946,687		629,809		—		(232	)
KT Japan Co., Ltd. ¹		2,015		3,341		697		66
KT America, Inc.		6,013		701		2,305		21
KT Rwanda Networks Ltd. ²		134,847		313,787		8,257		(11,489	)
AOS Ltd. ²		10,763		1,983		2,133		333
KT Hong Kong Telecommunications Co., Ltd.		11,142		5,121		4,666		53
KT Huimangjieum ¹		8,073		2,715		3,806		322
KT Engineering Co., Ltd.		160,243		104,005		21,229		(5,068	)
KT Studio Genie Co., Ltd. ¹		989,187		259,413		110,404		5,457
Lolab Co., Ltd.		42,744		37,838		36,793		(3,900	)
East Telecom LLC ¹		48,483		22,632		7,334		2,271
KT ES Pte. Ltd.¹		117,009		90,392		21,019		(1,387	)
KTP SERVICES INC.		2,967		919		235		53
Altimedia Corporation ¹		48,381		12,374		8,299		(840	)
KT RUS LLC		501		10		—		(332	)

KT Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

As of March 31, 2024 and 2023, and December 31, 2023


(in millions of Korean won)	March 31, 2023				Three-month period ended March 31, 2023 ³
	Total assets		Total liabilities		Operating revenues		Profit (loss) for the period

KT DX Vietnam Company Limited		1,694		102		—		(13	)
KT cloud Co., Ltd. ¹		1,983,972		503,241		148,682		9,939
KT Healthcare Vina Co., Ltd.		12,730		439		—		(47	)
K-Realty Qualified Private Real Estate Investment Trust No. 1		80,266		50,693		—		—
AQUA RETAIL VIETNAM COMPANY LIMITED		1,202		62		—		—

As intermediate controlling companies, financial information from their consolidated financial statements is presented.

Convertible preferred stock issued by subsidiaries as of the end of the reporting period is included in liabilities.

Profit or loss from the date of acquisition of control to the end of the reporting period is included.

KT Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

As of March 31, 2024 and 2023, and December 31, 2023

2	Material Accounting Policies

2.1

Basis of Preparation

The Group maintains its accounting records in Korean won and prepares statutory financial statements in the Korean language (Hangul) in accordance with International Financial Reporting Standards as adopted by the Republic of Korea (K-IFRS). The accompanying consolidated financial statements have been condensed, restructured and translated into English from the Korean language financial statements.

The consolidated interim financial statements of the Group for the three-month period ended March 31, 2024, have been prepared in accordance with Korean IFRS 1034 Interim Financial Reporting. In order to understand the consolidated interim financial statements, annual consolidated financial statements as of December 31, 2023 prepared in accordance with IFRS should be used together.

2.2

Changes in Accounting Policy and Disclosures

(1) New and amended standards and interpretations adopted by the Group

The Group has applied a number of new and amended standards and new interpretations issued that are effective for accounting periods beginning on January 1, 2024.

- K-IFRS 1001 Presentation of Financial Statements (Amendment in 2020) – Classification of Liabilities as Current or Non-current

The amendments clarify that the classification of liabilities as current and non-current is based on rights that are existing at the end of the reporting period, specify that classification is unaffected by expectations about whether an entity will exercise its right to defer settlement of a liability, explain that rights are in existence if covenants are complied with at the end of the reporting period, and introduce a definition of ‘settlement’ to make clear that settlement refers to the transfer to the counterparty of cash, equity instruments, other assets or services.

- K-IFRS 1001 Presentation of Financial Statements (Amendment in 2023) - Non-current Liabilities with Covenants

The amendments specify that only covenants that an entity is required to comply with on or before the end of the reporting period affect the entity’s right to defer settlement of a liability for at least twelve months after the reporting date. Such covenants affect whether the right exists at the end of the reporting period, even if compliance with the covenant is assessed only after the reporting date.

KT Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

As of March 31, 2024 and 2023, and December 31, 2023

The amendments also specifies that the right to defer settlement of a liability for at least twelve months after the reporting date is not affected if an entity only has to comply with a covenant after the reporting period. However, if the entity’s right to defer settlement of a liability is subject to the entity complying with covenants within twelve months after the reporting period, an entity discloses information that enables users of financial statements to understand the risk of the liabilities becoming repayable within twelve months after the reporting period. This would include information about the covenants (including the nature of the covenants and when the entity is required to comply with them), the carrying amount of related liabilities and facts and circumstances, if any, that indicate that the entity may have difficulties complying with the covenants.

- K-IFRS 1007 Cash Flow Statement and K-IFRS 1107 Financial Instruments Disclosure (Amendment) - Supplier Finance Agreements

The amendments add a disclosure objective in K-IFRS 1007 Cash Flow Statement stating that an entity is required to disclose information about supplier finance agreements that enables users of financial statements to assess the effects of those arrangements on the Group’s liabilities and cash flows. In addition, K-IFRS 1107 was amended to add supplier finance arrangements as an example within the requirements to disclose information about an entity’s exposure to concentration of liquidity risk.

The term ‘supplier finance agreements’ is not defined; instead, the amendments describe the characteristics of an arrangement for which an entity would be required to provide the information.

To meet the disclosure objective, an entity will be required to disclose in aggregate for its supplier finance arrangements:

•

The terms and conditions of an agreement

•

The carrying amount, and associated line items presented in the entity’s statement of financial position, of the liabilities that are part of the arrangements

•

The carrying amount, and associated line items for which the suppliers have already received payment from the finance providers

•

Ranges of payment due dates for both those financial liabilities that are part of a supplier finance arrangement and comparable trade payables that are not part of a supplier finance arrangement

•

Types of non-cash changes in the carrying amount of financial liabilities corresponding to supplier finance agreements and their impact

•

Liquidity risk information

KT Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

As of March 31, 2024 and 2023, and December 31, 2023

- K-IFRS 1116 Leases (Amendment) - Lease Liability in a Sale and Leaseback

The amendments add a subsequent measurement requirement for sale and leaseback transactions that satisfy the requirements in K-IFRS 1115 Revenue from contracts with customers. The amendments require the seller-lessee to determine ‘lease payments’ or ‘revised lease payments’ in such a way that the seller-lessee does not recognise a gain or loss that relates to the right of use asset retained by the seller-lessee, after the lease commencement date.

- K-IFRS 1001 Presentation of Financial Statements (Amendment in 2023) - Disclosure of Virtual Assets

The amendments, in addition to additional disclosure requirements required by other Standards for transactions related to virtual assets, are setting out the disclosure requirements in each case of 1) holding virtual assets; 2) holding virtual assets on behalf of customers; and 3) issuing virtual assets.

When holding a virtual asset, disclosure on the general information of the virtual asset, the applied accounting policy, and the acquisition method, acquisition cost, and the fair value of each virtual asset at the end of the reporting period should be disclosed. In addition, when issuing a virtual asset, the entity’s obligations and the status of fulfilment of the obligation related to the issued virtual asset, the timing and amount of the recognized revenue of the sold virtual asset, the quantity of virtual assets held after issuance, and important contract details should be disclosed.

(2) New and revised standards and interpretations in issue but not yet effective or adopted by the Group

At the date of authorization of these financial statements, the Group has not applied the following new and amended K-IFRS standards that have been issued but are not yet effective:

- K-IFRS 1021 The effects of changes in foreign exchange rates and K-IFRS 1101 First time adoption of international financial reporting- Improving Interchangeability

The amendments define situations in which exchange with other currencies is possible for accounting purposes, assess the exchangeability with other currencies and clarify the estimating and requirements for disclosure of spot exchange rates to be used in the absence of exchangeability.

If exchange for other currencies is not possible, the spot exchange rate should be estimated on the measurement date, and the observable exchange rate should be used without adjustment or other estimation techniques should be used.

The above amendments are applicable for annual reporting periods beginning on or after 1 January 2025, with early application permitted.

The Group is reviewing the impact of the above-listed amendments on the financial statements.

KT Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

As of March 31, 2024 and 2023, and December 31, 2023

2.3

Accounting Policies

Material accounting policies and method of computation used in the preparation of the consolidated interim financial statements are consistent with those of the consolidated financial statements for the year ended December 31, 2023, except for the changes due to the application of amendment and enactments of standards described in Note 2.2 (1) and as described below.

(1) Income Tax Expense

Income tax expense for the interim period is recognized based on management’s best estimate of the weighted average annual income tax rate expected for the full financial year. The estimated average annual tax rate is applied to the pre-tax income of the interim period.

3	Critical Accounting Estimates and Assumptions

The preparation of financial statements requires the Group to make estimates and assumptions concerning the future. Management also needs to exercise judgement in applying the Group’s accounting policies. Estimates and assumptions are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. As the resulting accounting estimates will, by definition, seldom equal the actual results, it poses significant risk of resulting in a material adjustment.

KT Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

As of March 31, 2024 and 2023, and December 31, 2023

4	Financial Instruments by Category

Financial instruments by category as of March 31, 2024 and December 31, 2023, are as follows:


(in millions of Korean won)	March 31, 2024
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	W	3,000,687	W	—	W	—	W	—	W	3,000,687
Trade and other receivables		8,431,833		—		280,253		—		8,712,086
Other financial assets		1,179,028		1,028,218		1,831,921		248,172		4,287,339


(in millions of Korean won)	March 31, 2024
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 payables¹	W	8,393,343	W	—	W	—	W	—	W	8,393,343
Borrowings		10,151,390		—		—		—		10,151,390
Other financial liabilities		894,982		147,982		2,617		—		1,045,581
Lease liabilities		—		—		—		1,123,711		1,123,711

¹	Amounts related to employee benefit plans are excluded in Trade and other payables.


(in millions of Korean won)	December 31, 2023
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	W	2,879,554	W	—	W	—	W	—	W	2,879,554
Trade and other receivables		8,458,259		—		116,198		—		8,574,457
Other financial assets		1,385,921		939,661		1,680,168		159,211		4,164,961


(in millions of Korean won)	December 31, 2023
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 payables¹	W	8,317,822	W	—	W	—	W	—	W	8,317,822
Borrowings		10,218,165		—		—		—		10,218,165
Other financial liabilities		915,185		136,106		24,547		—		1,075,838
Lease liabilities		—		—		—		1,179,909		1,179,909

¹	Amounts related to employee benefit plans are excluded in Trade and other payables.

KT Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

As of March 31, 2024 and 2023, and December 31, 2023

5	Trade and Other Receivables

(1)

Trade and other receivables as of March 31, 2024 and December 31, 2023, are as follows:


(in millions of Korean won)	March 31, 2024
	Total amounts		Provision for impairment			Present value discount			Carrying amount

Current assets
Trade receivables	W	3,925,589	W	(337,434	)	W	(8,128	)	W	3,580,027
Other receivables		3,876,741		(90,413	)		(2,826	)		3,783,502

Total	W	7,802,330	W	(427,847	)	W	(10,954	)	W	7,363,529


Non-current assets
Trade receivables	W	239,478	W	(1,288	)	W	(14,440	)	W	223,750
Other receivables		1,238,187		(101,535	)		(11,845	)		1,124,807

Total	W	1,477,665	W	(102,823	)	W	(26,285	)	W	1,348,557


(in millions of Korean won)	December 31, 2023
	Total amounts		Provision for impairment			Present value discount			Carrying amount

Current assets
Trade receivables	W	3,596,899	W	(330,002	)	W	(9,165	)	W	3,257,732
Other receivables		3,990,900		(76,089	)		(2,254	)		3,912,557

Total	W	7,587,799	W	(406,091	)	W	(11,419	)	W	7,170,289

Non-current assets
Trade receivables	W	318,429	W	(1,288	)	W	(19,476	)	W	297,665
Other receivables		1,227,929		(107,547	)		(13,879	)		1,106,503

Total	W	1,546,358	W	(108,835	)	W	(33,355	)	W	1,404,168

KT Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

As of March 31, 2024 and 2023, and December 31, 2023

(2)

Details of other receivables as of March 31, 2024 and December 31, 2023, are as follows:


(in millions of Korean won)	March 31, 2024			December 31, 2023

Loans	W	42,839		W	51,854
Receivables ¹		3,397,770			3,539,742
Accrued income		110,951			43,920
Refundable deposits		277,850			299,935
Loans receivable		1,073,726			1,067,005
Finance lease receivables		139,941			141,883
Others		57,180			58,357
Less: Provision for impairment		(191,948	)		(183,636	)

	W	4,908,309		W	5,019,060

As of March 31, 2024, credit sales asset of W 2,612,307 million (December 31, 2023: W 2,696,505 million) held by BC Card Co., Ltd. are included

(3)

The maximum exposure of trade and other receivables to credit risk is the carrying amount of each class of receivables mentioned above as of March 31, 2024.

(4)

The Group classifies a certain portion of trade receivables as financial assets at fair value through other comprehensive income considering the trade receivables business model for managing the asset and the cash flow characteristics of the contract.

KT Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

As of March 31, 2024 and 2023, and December 31, 2023

6	Other Financial Assets and Liabilities

(1)

Details of other financial assets and liabilities as of March 31, 2024 and December 31, 2023, are as follows:


(in millions of Korean won)	March 31, 2024			December 31, 2023

Other financial assets
Financial assets at amortized cost ¹	W	1,179,028		W	1,385,921
Financial assets at fair value through profit or loss ^1,2		1,028,218			939,661
Financial assets at fair value through other comprehensive income		1,831,921			1,680,168
Derivatives used for hedging		248,172			159,211
Less: Non-current		(2,815,651	)		(2,724,761	)

Current	W	1,471,688		W	1,440,200

Other financial liabilities
Financial liabilities at amortized cost ³	W	894,982		W	915,185
Financial liabilities at fair value through profit or loss		147,982			136,106
Derivatives used for hedging		2,617			24,547
Less: Non-current		(698,936	)		(753,739	)

Current	W	346,645		W	322,099

As of March 31, 2024, the Group’s other financial assets amounting to W 99,152 million (December 31, 2023: W 98,309 million), which consist of checking account deposits, time deposits and others, are subject to withdrawal restrictions.

As of March 31, 2024, the Group provided investments in Korea Software Financial Cooperative amounting to W 9,485 million as a collateral for the payment guarantee provided by the Cooperative.

The amount includes liabilities related to the obligation to acquire additional shares in Epsilon Global Communications Pte. Ltd. and KT Cloud Co., Ltd. (Note 15).

(2)

Financial Assets at fair value through profit or loss

Details of financial assets at fair value through profit or loss as of March 31, 2024 and December 31, 2023, are as follows:


(in millions of Korean won)	March 31, 2024			December 31, 2023

Equity instruments (Listed)	W	11,555		W	13,911
Equity instruments (Unlisted)		42,457			42,185
Debt securities		969,081			880,549
Derivatives held for trading ¹		5,125			3,016

Total		1,028,218			939,661
Less: Non-current		(801,629	)		(782,143	)

Current	W	226,589		W	157,518

According to a derivative arrangement with LS Cable & System Ltd. in connection with LS Marine Solution Co., Ltd., derivative assets amounting to W 1,015 million is included as of March 31, 2024 (Note 15).

The maximum exposure of debt instruments of financial assets recognized at fair value through profit or loss to credit risk is the carrying amount as of March 31, 2024.

KT Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

As of March 31, 2024 and 2023, and December 31, 2023

(3)

Financial Assets at fair value through other comprehensive income

Details of financial assets at fair value through other comprehensive income as of March 31, 2024 and December 31, 2023, are as follows:


(in millions of Korean won)	March 31, 2024			December 31, 2023
Equity instruments (Listed)	W	1,382,808		W	1,231,188
Equity instruments (Unlisted)		443,211			443,067
Debt securities		5,902			5,913

Total		1,831,921			1,680,168
Less: Non-current		(1,831,921	)		(1,680,168	)

Current	W	—		W	—

Upon disposal of these equity investments, any balance within the accumulated other comprehensive income is not reclassified to profit or loss, but to retained earnings. Upon disposal of these debt investments, the remaining balance of the accumulated other comprehensive income is reclassified to profit or loss.

(4)

Derivatives used for hedging

Details of valuation of derivatives used for hedging as of March 31, 2024 and December 31, 2023, are as follows:


(in millions of Korean won)	March 31, 2024						December 31, 2023
	Assets			Liabilities			Assets			Liabilities
Interest rate swap ¹	W	2,336		W	181		W	1,530		W	191
Currency swap ²		245,836			2,436			157,681			24,356

Total		248,172			2,617			159,211			24,547
Less: Non-current		(176,982	)		(1,724	)		(107,802	)		(23,696	)

Current	W	71,190		W	893		W	51,409		W	851

¹	The interest rate swap contract is to hedge the risk of variability in cash flow from the floating-rate borrowings due to changes in interest rate.

²	The currency swap contract is to hedge the risk of variability in cash flow from the borrowings due to changes in interest rate and foreign exchange rate and the expected maximum period for the Group to be exposed to risks of cash flow fluctuation by hedged items is until September 7, 2034.

The entire fair value of a hedging derivative is classified as a non-current asset or liability if the remaining maturity of the hedged item is more than 12 months and, as a current asset or liability, if the maturity of the hedged item is less than 12 months.

KT Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

As of March 31, 2024 and 2023, and December 31, 2023

The valuation gains and losses on the derivative contracts for the three-month periods ended March 31, 2024 and 2023, are as follows:


(in millions of Korean won)
	2024							2023
Type of transaction	Valuation gain		Valuation loss		Other comprehensive income¹			Valuation gain		Valuation loss		Other comprehensive income¹
Interest rate swap	W	18	W	—	W	858		W	—	W	—	W	(2,379	)
Currency swap		116,388		93		(6,280	)		89,714		—		77,915

Total	W	116,406	W	93	W	(5,422	)	W	89,714	W	—	W	75,539

¹	The amounts directly reflected in equity are before adjustments of deferred income tax and allocation to the non-controlling interest.

The ineffective portion recognized in profit or loss on the cash flow hedges are valuation loss of W 804 million for the three-month period March 31, 2024 (three-month period ended March 31, 2023: valuation gain of W 866 million).

(5)

Financial Liabilities at fair value through profit or loss

Details of financial liabilities at fair value through profit or loss as of March 31, 2024 and December 31, 2023, are as follows:


(in millions of Korean won)	March 31, 2024		December 31, 2023
Derivatives held for trading ^1,2,3	W	147,982	W	136,106

Derivative liabilities recognized as the Group signed a shareholders’ agreement with financial investors participating in capital increase of K Bank Inc are included. In case of IPO failure of K Back Inc. on the terms agreed upon from the date of completion of the acquisition of shares, financial investors may exercise the Drag-Along right to the Group, and the Group may accede to it or exercise the right to claim for sale. If financial investors exercise the Drag-Along Right, the Group should exercise the right to claim for sale or guarantee the rate of return on the terms agreed upon by financial investors.

²	The amount includes derivatives separated from convertible bonds issued by the Group (Note 12).

³	The amount includes liabilities related to the obligation to acquire additional shares in MILLIE Co., Ltd. (Note 15).

KT Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

As of March 31, 2024 and 2023, and December 31, 2023

The valuation gain and loss on financial liabilities at fair value through profit or loss for the three-month periods ended March 31, 2024 and 2023, are as follows:

(in millions of Korean won)

2024

2023

Valuation

gain

Valuation

loss

Valuation

gain

Valuation

loss

Derivatives liabilities held for trading

11,048

—

17,642

7	Inventories

Inventories as of March 31, 2024 and December 31, 2023, are as follows:


(in millions of Korean won)
	March 31, 2024							December 31, 2023
	Acquisition cost		Valuation allowance			Carrying amount		Acquisition cost		Valuation allowance			Carrying amount
Merchandise	W	949,379	W	(82,739	)	W	866,640	W	981,127	W	(102,215	)	W	878,912
Others		32,497		—			32,497		33,350		—			33,350

Total	W	981,876	W	(82,739	)	W	899,137	W	1,014,477	W	(102,215	)	W	912,262

Cost of inventories recognized as expenses for the three-month period March 31, 2024 amounts to W 924,958 million (March 31, 2023: W 881,384 million) and reversal valuation loss on inventory amounts to W 19,476 million for the three-month period March 31, 2024 (March 31, 2023: valuation loss on inventory of W 3,162 million).

KT Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

As of March 31, 2024 and 2023, and December 31, 2023

8	Other Assets and Liabilities

Other assets and liabilities as of March 31, 2024 and December 31, 2023, are as follows:


(in millions of Korean won)	March 31, 2024			December 31, 2023
Other assets
Advance payments	W	225,447		W	217,997
Prepaid expenses		290,198			146,628
Contract cost		1,714,249			1,727,468
Contract assets		828,545			832,520
Others		12,778			15,237
Less: Non-current		(812,071	)		(827,297	)

Current	W	2,259,146		W	2,112,553

Other liabilities
Advances received ¹	W	761,482		W	582,652
Withholdings		132,338			159,080
Unearned revenue ¹		23,173			27,392
Lease liabilities		1,123,711			1,179,909
Contract liabilities		288,021			278,749
Others		17,037			30,848
Less: Non-current		(842,399	)		(950,015	)

Current	W	1,503,363		W	1,308,615

¹	The amounts include adjustments arising from adoption of Korean IFRS 1115 Revenue from Contracts with Customers (Note 19).

KT Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

As of March 31, 2024 and 2023, and December 31, 2023

9	Property and Equipment, Investment Properties, and Intangible Assets

(1)

Changes in property and equipment for three-month periods ended March 31, 2024 and 2023, are as follows:


(in millions of Korean won)	2024			2023
Beginning, net	W	14,872,079		W	14,772,179
Acquisition and capital expenditure		440,801			555,933
Disposal and termination		(17,625	)		(13,323	)
Depreciation		(701,279	)		(671,077	)
Transfer to investment property		5,805			(33,951	)
Impairment		—			(522	)
Others		(14,059	)		(47,044	)

Ending, net	W	14,585,722		W	14,562,195

Details of property and equipment and Investment Properties provided as collateral as of March 31, 2024 and December 31, 2023, are as follows:

(in millions of Korean won)

March 31, 2024

Carrying
amount

Secured
amount

Related line
item

Related
amount

Secured party

Land and Buildings

80,726

65,880

Borrowings

54,900

Industrial Bank of Korea/Shinhan Bank/Standard Chartered Bank Korea

Land and Buildings

555,317

64,869

Deposits

56,183

Lessee

(in millions of Korean won)

December 31, 2023

Carrying
amount

Secured
amount

Related line
item

Related
amount

Secured party

Land and Buildings

81,057

64,680

Borrowings

54,900

Industrial Bank of Korea/Shinhan Bank/Standard Chartered Bank Korea

Land and Buildings

555,921

64,877

Deposits

55,965

Lessee

KT Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

As of March 31, 2024 and 2023, and December 31, 2023

(2)

Changes in investment properties for the three-month periods ended March 31, 2024 and 2023, are as follows:


(in millions of Korean won)	2024			2023
Beginning, net	W	2,198,135		W	1,933,358
Acquisition		9,962			9,893
Disposal		(1,772	)		(14	)
Depreciation		(13,851	)		(12,619	)
Transfer from property and equipment		(5,805	)		33,951
Others		(265	)		8,598

Ending, net	W	2,186,404		W	1,973,167

As of March 31, 2024, the Group (Lessor) has entered into a non-cancellable operating lease contract relating to real estate lease. The future minimum lease payments under this contract are W 97,931 million for one year or less, W 125,324 million for more than one year and less than five years, W 16,029 million for over five years, and W 239,284 million in total.

(3)

Changes in intangible assets for the three-month periods ended March 31, 2024 and 2023, are as follows:


(in millions of Korean won)	2024			2023
Beginning, net	W	2,533,861		W	3,129,833
Acquisition and capital expenditure ¹		39,260			110,358
Disposal and termination		(7,496	)		(2,085	)
Amortization		(170,080	)		(188,590	)
Impairment		(22	)		—
Changes in consolidation scope		—			6,207
Others		10,856			12,757

Ending, net	W	2,406,379		W	3,068,480

¹	Amounts include transfer from property and equipment.

The carrying amount of membership rights with an indefinite useful life not subject to amortization, except for goodwill, is W 212,614 million as of March 31, 2024 (December 31, 2023: W 212,910 million).

KT Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

As of March 31, 2024 and 2023, and December 31, 2023

Goodwill is allocated to the Group’s cash-generating unit, which is identified by operating segments. As of March 31, 2024, goodwill allocated to each cash-generation unit is as follows:


(In millions of Korean won)
Cash-Generating Unit	Amount
Mobile services	W	65,057
BC Card Co., Ltd.^.		41,234
HCN Co., Ltd.		128,688
GENIE Music Corporation		50,214
MILLIE Co., Ltd.		54,725
PlayD Co., Ltd.		40,068
KT Telecop Co., Ltd.		15,418
Epsilon Global Communications Pte. Ltd.		47,703
KT MOS Bukbu Co., Ltd. and others		45,848

	W	488,955

The recoverable amount of goodwill has been determined based on the fair value obtained by calculating the value in use or deducting the cost of disposal. The pre-tax cash flow estimate was used to calculate the value of use based on the financial budget, such as the budget for the next five years. Cash flows after the estimated period were estimated using the expected growth rate, and the growth rate does not exceed the long-term average growth rate of the industry to which the cash-generating unit belongs. The Group determines the growth margin rate based on past performance and expectations of future market changes. The Group has determined pre-tax cash flow estimates based on past earnings and market growth forecasts, and the discount rate used reflects the specific risks of related operations.

10	Investments in Associates and Joint Ventures

(1)

Details of associates as of March 31, 2024 and December 31, 2023, are as follows:


	Percentage of ownership (%)						Location		Closing month
	March 31, 2024			December 31, 2023
KIF Investment Fund		33.3	%		33.3	%		Korea		December
K Bank Inc.		33.7	%		33.7	%		Korea		December
HD Hyundai Robotics Co., Ltd. ¹		10.0	%		10.0	%		Korea		December
Megazone Cloud Corporation ¹		6.8	%		6.8	%		Korea		December
IGIS No. 468-1 General Private Real Estate Investment Company		44.6	%		44.6	%		Korea		December
KT-DSC Creative Economy Youth Start-up Investment Fund		28.6	%		28.6	%		Korea		December
IGIS No. 395 Professional Investors Private Investment Real Estate Investment LLC		35.3	%		35.3	%		Korea		December
LS Marine Solution Co., Ltd.^1,		7.3	%		7.3	%		Korea		December

¹	As of March 31, 2024, although the Group has less than 20% ownership in ordinary share, this entity is included in investments in associates as the Group has significant influence in determining the operational and financial policies.

KT Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

As of March 31, 2024 and 2023, and December 31, 2023

(2)

Changes in investments in associates and joint ventures for the three-month periods ended March 31, 2024 and 2023, are as follows:


	2024
(in millions of Korean won)	Beginning		Acquisition		Share of net profit (loss) from associates and joint ventures ¹			Others			Ending
KIF Investment Fund	W	177,054	W	—	W	43		W	—		W	177,097
K Bank Inc.		872,881		—		16,233			859			889,973
HD Hyundai Robotics Co., Ltd.		47,734		—		142			(112	)		47,764
Megazone Cloud Corporation		131,694		—		(764	)		719			131,649
IGIS No. 468-1 General Private Real Estate Investment Company		23,484		—		(3	)		—			23,481
KT-DSC Creative Economy Youth Start-up Investment Fund		25,117		—		(362	)		—			24,755
IGIS Professional Investors Private Investment Real Estate Investment LLC No 395		11,942		—		(751	)		—			11,191
LS Marine Solution Co., Ltd.		23,492		—		(137	)		(312	)		23,043
Others¹		243,491		4,600		(5,446	)		(109	)		242,536

Total	W	1,556,889	W	4,600	W	8,955		W	1,045		W	1,571,489

KT Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

As of March 31, 2024 and 2023, and December 31, 2023


	2023
(in millions of Korean won)	Beginning		Acquisition (Disposal)		Share of net profit (loss) from associates and joint ventures ¹			Others			Ending
KIF Investment Fund	W	170,979	W	—	W	53		W	(1,139	)	W	169,893
K Bank Inc.		852,756		—		2,137			8,564			863,457
HD Hyundai Robotics Co., Ltd.		49,372		—		(126	)		38			49,284
Megazone Cloud Corporation		136,199		—		(2,795	)		(289	)		133,115
IGIS No. 468-1 General Private Real Estate Investment Company		23,589		—		(3	)		—			23,586
KT-DSC Creative Economy Youth Start-up Investment Fund		22,123		—		359			—			22,482
IGIS Professional Investors Private Investment Real Estate Investment LLC No 395		16,620		—		(370	)		—			16,250
Others¹		209,084		9,086		(3,083	)		(41	)		215,046

Total	W	1,480,722	W	9,086	W	(3,828	)	W	7,133		W	1,493,113

KT Investment Co., Ltd., a subsidiary of the Group, recognized net profit (loss) in the investments in associates as operating income (loss). Net profit recognized as operating income for the three-months period ended March 31, 2024 amount to W 144 million (three-month period ended March 31, 2023: net loss of W 23 million).

(3)

Summarized statements of financial position of the major associates and joint ventures as of March 31, 2024 and December 31, 2023 and summarized statements of profit or loss for the three-month periods ended March 31, 2024 and 2023, are as follows:


(in millions of Korean won)	March 31, 2024
	Assets		Liabilities		Operating revenue		Profit (loss) for the period
KIF Investment Fund	W	531,291	W	—	W	—	W	127
K Bank Inc.		26,306,355		24,389,501		281,717		49,293
HD Hyundai Robotics Co., Ltd.		386,856		116,623		46,769		1,397
Megazone Cloud Corporation		1,090,852		498,673		428,618		182
IGIS No. 468-1 General Private Real Estate Investment Company		52,603		6		1		(7	)
KT-DSC Creative Economy Youth Start-up Investment Fund		86,739		100		2		(1,269	)
IGIS Professional Investors Private Investment Real Estate Investment LLC No 395		157,879		114,060		—		(86	)
LS Marine Solution Co., Ltd.		158,197		41,382		13,676		(1,867	)

KT Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

As of March 31, 2024 and 2023, and December 31, 2023


(in millions of Korean won)	December 31, 2023				March 31, 2023
	Assets		Liabilities		Operating revenue		Profit (loss) for the period
KIF Investment Fund	W	531,163	W	—	W	—	W	160
K Bank Inc		21,410,602		19,545,592		220,259		10,376
HD Hyundai Robotics Co., Ltd.		386,292		116,332		30,887		(1,722	)
Megazone Cloud Corporation		1,142,383		546,766		321,091		(3,021	)
IGIS No. 468-1 General Private Real Estate Investment Company		52,616		11		1		(7	)
KT-DSC Creative Economy Youth Start-up Investment Fund		88,010		101		1,345		1,257
IGIS Professional Investors Private Investment Real Estate Investment LLC No 395		151,459		107,553		—		(141	)
LS Marine Solution Co., Ltd.		147,074		24,113		8,579		1,668

(4)

Due to discontinuance of equity method of accounting, the Group has not recognized loss from associates and joint ventures of W 85 million for the three-month period March 31, 2024 (three-month period ended March 31, 2023: W 243 million). The unrecognized accumulated comprehensive loss of associates and joint ventures as of March 31, 2024 is W 10,833 million (December 31, 2023: W 10,748 million).

KT Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

As of March 31, 2024 and 2023, and December 31, 2023

11	Trade and Other Payables

(1)

Details of trade and other payables as of March 31, 2024 and December 31, 2023, are as follows:


(in millions of Korean won)	March 31, 2024		December 31, 2023
Current liabilities
Trade payables	W	1,261,565	W	1,297,752
Other payables		7,020,882		6,757,170

Total	W	8,282,447	W	8,054,922

Non-current liabilities
Trade payables	W	2,439	W	3,202
Other payables		551,653		816,356

Total	W	554,092	W	819,558

(2)

Details of other payables as of March 31, 2024 and December 31, 2023, are as follows:


(in millions of Korean won)	March 31, 2024			December 31, 2023
Non-trade payables ¹	W	5,105,198		W	5,207,165
Accrued expenses		1,331,728			1,267,700
Operating deposits		915,597			880,810
Others		220,012			217,851
Less: non-current		(551,653	)		(816,356	)

Current	W	7,020,882		W	6,757,170

¹	As of March 31, 2024, credit sale liabilities amounting to W 2,253,735 million (December 31, 2023: W 2,314,077 million) held by BC Card Co., Ltd. (a subsidiary of the Group) are included.

KT Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

As of March 31, 2024 and 2023, and December 31, 2023

12	Borrowings

(1)

Details of borrowings as of March 31, 2024 and December 31, 2023, are as follows:

Debentures


(in millions of Korean won and foreign currencies in thousands)					March 31, 2024				December 31, 2023
Type	Maturity	Annual interest rates			Foreign currency		Korean won		Foreign currency		Korean won
MTNP notes ¹	Sep. 07, 2034		6.500	%	USD	100,000	W	134,680	USD	100,000	W	128,940
MTNP notes	Jul. 18, 2026		2.500	%	USD	400,000		538,720	USD	400,000		515,760
MTNP notes	Jul. 19, 2024		0.330	%	JPY	400,000		3,558	JPY	400,000		3,651
MTNP notes	Sep. 01. 2025		1.000	%	USD	400,000		538,720	USD	400,000		515,760
FR notes ²	Nov. 01, 2024		Compounded SOFR+1.210	%	USD	350,000		471,380	USD	350,000		451,290
MTNP notes	Jan. 21, 2027		1.375	%	USD	300,000		404,040	USD	300,000		386,820
MTNP notes	Aug. 08, 2025		4.000	%	USD	500,000		673,400	USD	500,000		644,700
The 183-3rd Public bond	Dec. 22, 2031		4.270	%		—		160,000		—		160,000
The 184-3rd Public bond	Apr. 10, 2033		3.170	%		—		100,000		—		100,000
The 186-3rd Public bond	Jun. 26, 2024		3.418	%		—		110,000		—		110,000
The 186-4th Public bond	Jun. 26, 2034		3.695	%		—		100,000		—		100,000
The 187-3rd Public bond	Sep. 02, 2024		3.314	%		—		170,000		—		170,000
The 187-4th Public bond	Sep. 02, 2034		3.546	%		—		100,000		—		100,000
The 188-2nd Public bond	Jan. 29, 2025		2.454	%		—		240,000		—		240,000
The 188-3rd Public bond	Jan. 29, 2035		2.706	%		—		50,000		—		50,000
The 189-3rd Public bond	Jan. 28, 2026		2.203	%		—		100,000		—		100,000
The 189-4th Public bond	Jan. 28, 2036		2.351	%		—		70,000		—		70,000
The 190-3rd Public bond	Jan. 30, 2028		2.947	%		—		170,000		—		170,000
The 190-4th Public bond	Jan. 30, 2038		2.931	%		—		70,000		—		70,000
The 191-2nd Public bond	Jan. 15, 2024		—			—		—		—		80,000
The 191-3rd Public bond	Jan. 15, 2029		2.160	%		—		110,000		—		110,000
The 191-4th Public bond	Jan. 14, 2039		2.213	%		—		90,000		—		90,000
The 192-2nd Public bond	Oct. 11, 2024		1.578	%		—		100,000		—		100,000
The 192-3rd Public bond	Oct. 11, 2029		1.622	%		—		50,000		—		50,000
The 192-4th Public bond	Oct. 11, 2039		1.674	%		—		110,000		—		110,000
The 193-2nd Public bond	Jun. 17, 2025		1.434	%		—		70,000		—		70,000
The 193-3rd Public bond	Jun. 17, 2030		1.608	%		—		20,000		—		20,000
The 193-4th Public bond	Jun. 15, 2040		1.713	%		—		60,000		—		60,000
The 194-1st Public bond	Jan. 26, 2024		—			—		—		—		130,000
The 194-2nd Public bond	Jan. 27, 2026		1.452	%		—		140,000		—		140,000
The 194-3rd Public bond	Jan. 27, 2031		1.849	%		—		50,000		—		50,000
The 194-4th Public bond	Jan. 25, 2041		1.976	%		—		80,000		—		80,000
The 195-1st Public bond	Jun. 10, 2024		1.387	%		—		180,000		—		180,000
The 195-2nd Public bond	Jun. 10, 2026		1.806	%		—		80,000		—		80,000
The 195-3rd Public bond	Jun. 10, 2031		2.168	%		—		40,000		—		40,000
The 196-1st Public bond	Jan. 27, 2025		2.596	%		—		270,000		—		270,000

KT Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

As of March 31, 2024 and 2023, and December 31, 2023


(in millions of Korean won and foreign currencies in thousands)					March 31, 2024				December 31, 2023
Type	Maturity	Annual interest rates			Foreign currency		Korean won		Foreign currency		Korean won
The 196-2nd Public bond	Jan. 27, 2027		2.637	%		—		100,000		—		100,000
The 196-3rd Public bond	Jan. 27, 2032		2.741	%		—		30,000		—		30,000
The 197-1st Public bond	Jun. 27, 2025		4.191	%		—		280,000		—		280,000
The 197-2nd Public bond	Jun. 29, 2027		4.188	%		—		120,000		—		120,000
The 198-1st Public bond	Jan. 10, 2025		3.847	%		—		70,000		—		70,000
The 198-2nd Public bond	Jan. 12, 2026		3.869	%		—		150,000		—		150,000
The 198-3rd Public bond	Jan. 12, 2028		3.971	%		—		80,000		—		80,000
The 199-1st Public bond	Jul. 11, 2025		4.028	%		—		85,000		—		85,000
The 199-2nd Public bond	Jul. 10, 2026		4.146	%		—		160,000		—		160,000
The 199-3rd Public bond	Jul. 12, 2028		4.221	%		—		155,000		—		155,000
The 200-1st Public bond	Feb. 27, 2026		3.552	%		—		120,000		—		—
The 200-2nd Public bond	Feb. 26, 2027		3.608	%		—		200,000		—		—
The 200-3rd Public bond	Feb. 27, 2029		3.548	%		—		80,000		—		—
The 18-1st unsecured bond	Jul. 02, 2024		1.844	%		—		100,000		—		100,000
The 18-2nd unsecured bond	Jul. 02, 2026		2.224	%		—		50,000		—		50,000
The 149-1st Won-denominated unsecured bond	Mar. 08, 2024		—			—		—		—		70,000
The 149-2nd Won-denominated unsecured bond	Mar. 10, 2026		1.756	%		—		30,000		—		30,000
The 150-2nd Won-denominated unsecured bond	Apr. 08, 2024		1.462	%		—		30,000		—		30,000
The 151-2nd Won-denominated unsecured bond	May 14, 2024		1.432	%		—		40,000		—		40,000
The 152-1st Won-denominated unsecured bond	Aug. 30, 2024		1.813	%		—		80,000		—		80,000
The 152-2nd Won-denominated unsecured bond	Aug. 28, 2026		1.982	%		—		20,000		—		20,000
The 153-2nd Won-denominated unsecured bond	Nov. 11, 2024		2.425	%		—		70,000		—		70,000
The 154th Won-denominated unsecured bond	Jan. 23, 2025		2.511	%		—		40,000		—		40,000
The 155-1st Won-denominated unsecured bond	Feb. 29, 2024		—			—		—		—		50,000
The 155-2nd Won-denominated unsecured bond	Sep. 02, 2024		2.745	%		—		20,000		—		20,000
The 155-3rd Won-denominated unsecured bond	Feb. 28, 2025		2.880	%		—		20,000		—		20,000
The 156-1st Won-denominated unsecured bond³	Mar. 25, 2025		5Y CMS+0.404	%		—		60,000		—		60,000
The 156-2nd Won-denominated unsecured bond ³	Mar. 25, 2032		10Y CMS+0.965	%		—		40,000		—		40,000
The 158th Won-denominated unsecured bond	Jan. 27, 2025		4.421	%		—		50,000		—		50,000
The 159-1st Won-denominated unsecured bond	Aug. 09, 2024		4.267	%		—		30,000		—		30,000
The 159-2nd Won-denominated unsecured bond	Aug. 11, 2027		4.505	%		—		30,000		—		30,000

KT Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

As of March 31, 2024 and 2023, and December 31, 2023


(in millions of Korean won and foreign currencies in thousands)					March 31, 2024				December 31, 2023
Type	Maturity	Annual interest rates			Foreign currency		Korean won		Foreign currency		Korean won
The 160-1st Won-denominated unsecured bond	Jun. 14, 2024		5.615	%		—		20,000		—		20,000
The 160-2nd Won-denominated unsecured bond	Dec. 13, 2024		5.667	%		—		20,000		—		20,000
The 160-3rd Won-denominated unsecured bond	Dec. 12, 2025		5.769	%		—		30,000		—		30,000
The 161-1st Won-denominated unsecured bond	Jun. 21, 2024		5.527	%		—		10,000		—		10,000
The 161-2nd Won-denominated unsecured bond	Dec. 20, 2024		5.557	%		—		20,000		—		20,000
The 161-3rd Won-denominated unsecured bond	Jun. 20, 2025		5.594	%		—		30,000		—		30,000
The 161-4th Won-denominated unsecured bond	Dec. 22, 2025		5.615	%		—		10,000		—		10,000
The 162-2nd Won-denominated unsecured bond	Jan. 26, 2024		—			—		—		—		40,000
The 162-3rd Won-denominated unsecured bond	Apr. 26, 2024		5.080	%		—		10,000		—		10,000
The 163-1st Won-denominated unsecured bond	Feb. 20, 2026		4.059	%		—		20,000		—		20,000
The 163-2nd Won-denominated unsecured bond	Feb. 22, 2028		4.311	%		—		80,000		—		80,000
The 164-1st Won-denominated unsecured bond	Apr. 12, 2024		3.778	%		—		10,000		—		10,000
The 164-2nd Won-denominated unsecured bond	Oct. 24, 2024		3.821	%		—		30,000		—		30,000
The 164-3rd Won-denominated unsecured bond	Apr. 14, 2028		4.220	%		—		30,000		—		30,000
The 165-1st Won-denominated unsecured bond	May. 09, 2025		3.870	%		—		30,000		—		30,000
The 165-2nd Won-denominated unsecured bond	Nov. 09, 2026		3.932	%		—		10,000		—		10,000
The 165-3rd Won-denominated unsecured bond	May. 07, 2027		3.972	%		—		30,000		—		30,000
The 166-1st Won-denominated unsecured bond	Nov. 22. 2024		4.205	%		—		20,000		—		20,000
The 166-2nd Won-denominated unsecured bond	Apr. 22. 2025		4.310	%		—		40,000		—		40,000
The 166-3rd Won-denominated unsecured bond	May. 21. 2025		4.332	%		—		10,000		—		10,000
The 166-4th Won-denominated unsecured bond	May. 22. 2025		4.332	%		—		40,000		—		40,000
The 167-1st Won-denominated unsecured bond	Dec. 20. 2024		3.865	%		—		30,000		—		30,000
The 167-2nd Won-denominated unsecured bond	Jan. 22. 2025		3.864	%		—		50,000		—		50,000
The 167-3rd Won-denominated unsecured bond	Feb. 21. 2025		3.864	%		—		10,000		—		10,000
The 167-4th Won-denominated unsecured bond	Dec. 22. 2025		3.858	%		—		10,000		—		10,000

KT Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

As of March 31, 2024 and 2023, and December 31, 2023


(in millions of Korean won and foreign currencies in thousands)					March 31, 2024					December 31, 2023
Type	Maturity	Annual interest rates			Foreign currency		Korean won			Foreign currency		Korean won
The 168-1st Won-denominated unsecured bond	Jun. 05. 2025		3.687	%		—		40,000			—		—
The 168-2nd Won-denominated unsecured bond	Aug. 06. 2025		3.703	%		—		70,000			—		—
The 168-3rd Won-denominated unsecured bond	Oct. 02. 2025		3.724	%		—		40,000			—		—

Subtotal								8,744,498					8,446,921

Less: Current portion								(2,384,214	)				(1,924,523	)

Discount on bonds								(19,368	)				(19,248	)

Total							W	6,340,916				W	6,503,150

As of March 31, 2024, the Controlling Company has outstanding notes in the amount of USD 100 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 2,000 million. However, the MTNP has been terminated since 2007.

²	The Daily SOFR is approximately 5.340% as of March 31, 2024. Due to the suspension of LIBOR calculation (After June 30, 2023), the Company changed the alternative indicator interest rate to Compound SOFR+1.210%.

³	The CMS (5Y) and CMS (10Y) is approximately 3.258% and 3.255%, respectively as of March 31, 2024.

KT Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

As of March 31, 2024 and 2023, and December 31, 2023

Convertible bonds


(in millions of Korean won)
Type	Issuance Date		Maturity		Annual interest Rate		March 31, 2024			December 31, 2023
The 1st CB (Private) ¹		Jun. 5, 2020		Jun. 5, 2025		²	W	8,000		W	8,000
Redemption premium								2,267			2,267
Conversion rights adjustment								(1,521	)		(1,811	)

Subtotal								8,746			8,456
Current portion								(8,746	)		(8,456	)

Total							W	—		W	—

¹	Common shares of Storywiz are subject to conversion (appraisal period: June 5, 2021~May 4, 2025).

²	Nominal interest rate and maturity yield is approximately 0% and 5%, respectively, and will be settled on maturity.

Borrowings

Short-term borrowings


(in millions of Korean won)
Type	Financial institution		Annual interest rates	March 31, 2024				December 31, 2023
				Foreign currency		Korean won		Foreign currency		Korean won
Operational		Shinhan Bank	4.480%~6.520%		—	W	151,820		—	W	151,500
			4.480%~5.380%		—		92,000		—		70,000
		Woori Bank	—		—		—		—		20,000
		Korea Development Bank	4.790%~6.060%		—		49,000		—		34,900
		Industrial Bank of Korea	4.862%		—		6,000		—		6,000
		Hana Bank	—		—		—		—		4,800
		KB SECURITIES	4.230%		—		20,000		—		69,635
		HSBC¹	Compounded SOFR +2.100%	USD	26,950		36,317	USD	23,600		30,450
		NongHyup Bank²	KORIBOR(1M)+1.230%		—		4,000		—		8,500
		Korea Investment	4.230%		—		30,000		—		30,000

Total						W	389,137			W	425,785

¹	The Daily SOFR is approximately 5.340% as of March 31, 2024.

²	The KORIBOR(1M) is approximately 3.550% as of March 31, 2024.

KT Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

As of March 31, 2024 and 2023, and December 31, 2023

Long-term borrowings


(in millions of Korean won and thousands of foreign currencies)			March 31, 2024				December 31, 2023
Financial institution	Type	Annual interest rates	Foreign currency		Korean won		Foreign currency		Korean won
Export-Import Bank of Korea	Inter-Korean Cooperation Fund¹	1.00%		—	W	1,234		—	W	1,480
CA-CIB	General loans	3.380%		—		100,000		—		200,000
JPM	General loans	2.700%		—		100,000		—		200,000
DBS	General loans	4.079%		—		100,000		—		100,000
Shinhan Bank	General loans²	Term SOFR(3M)+1.700%	USD	8,910		12,000	USD	8,910		11,489
	General loans	1.900%~3.200%	USD	31,472		42,392	USD	31,472		40,655
	General loans ³	4.490%		—		62,398		—		62,398

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