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 August 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: August 26, 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 Its Subsidiaries

Consolidated Interim Financial Statements

June 30, 2024 and 2023, and December 31, 2023

ATTACHMENT: INDEPENDENT AUDITOR’S REVIEW REPORT

KT Corporation and Its Subsidiaries

Index

June 30, 2024 and 2023, and December 31, 2023


		Page(s)
Report on Review of Consolidated 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 – 76

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 August 14, 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 June 30, 2024, and the related consolidated interim statements of profit or loss and comprehensive income for the three-month and six-month periods ended June 30, 2024 and 2023, and changes in equity and cash flows for the six-month periods ended June 30, 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 these 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(“KSA”) 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.

LOGO

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 June 30, 2024, and its financial performance and its cash flows for the six-month periods ended June 2024 in accordance with K-IFRS No.1034 Interim Financial Reporting.

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, comprehensive income, changes in equity and cash flows for the year then ended, which are not accompanying this report, in accordance with KSA. 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.

LOGO

Seoul, Korea

August 14, 2024

Notice to Readers

This review report is effective as of August 14, 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 Its Subsidiaries

Consolidated Interim Statements of Financial Position

As of June 30, 2024 and December 31, 2023


(In millions of Korean won)	Notes		June 30, 2024		December 31, 2023
Assets
Current Assets
Cash and cash equivalents		4,29	W	3,786,724	W	2,879,554
Trade and other receivables, net		4,5,29		6,881,876		7,170,289
Other financial assets		4,6,29		1,304,742		1,440,200
Current income tax assets				2,325		3,299
Inventories, net		7		964,044		912,262
Other current assets		8		2,235,470		2,112,553

Total Current Assets				15,175,181		14,518,157

Non-Current Assets
Trade and other receivables, net		4,5,29		1,379,706		1,404,168
Other financial assets		4,6,29		3,070,502		2,724,761
Property and equipment, net		9		14,591,713		14,872,079
Right-of-use assets		16		1,286,681		1,304,963
Investment properties, net		9		2,250,074		2,198,135
Intangible assets, net		9		2,266,316		2,533,861
Investments in associates and joint ventures		10		1,592,746		1,556,889
Deferred income tax assets				623,699		608,924
Net defined benefit assets		14		92,458		160,748
Other non-current assets		8		815,303		827,297

Total Non-Current Assets				27,969,198		28,191,825

Total Assets			W	43,144,379	W	42,709,982

KT Corporation and Its Subsidiaries

Consolidated Interim Statements of Financial Position

As of June 30, 2024 and December 31, 2023


(In millions of Korean won)	Notes		June 30, 2024			December 31, 2023
Liabilities
Current Liabilities
Trade and other payables		4,11,29	W	8,052,305		W	8,054,922
Borrowings		4,12,29		3,595,006			3,058,564
Other financial liabilities		4,6,29		324,832			322,099
Current income tax liabilities				316,958			236,463
Other provisions		13,15		105,854			115,209
Deferred income		19		62,500			51,537
Other current liabilities		4,8,16		1,637,760			1,308,615

Total Current Liabilities				14,095,215			13,147,409

Non-Current Liabilities
Trade and other payables		4,11,29		556,236			819,558
Borrowings		4,12,29		6,555,579			7,159,601
Other financial liabilities		4,6,29		696,966			753,739
Net defined benefit liabilities		14		73,113			63,616
Other provisions		13,15		111,420			107,014
Deferred income		19		147,972			153,563
Deferred income tax liabilities				1,053,640			994,330
Other non-current liabilities		4,8,16		872,337			950,015

Total Non-Current Liabilities				10,067,263			11,001,436

Total Liabilities				24,162,478			24,148,845

Equity Attribute to Owners of the Controlling Company
Share capital				1,564,499			1,564,499
Share premium				1,440,258			1,440,258
Retained earnings		17		14,452,660			14,494,430
Accumulated other comprehensive income				294,207			52,407
Other components of equity		18		(637,177	)		(802,418	)

				17,114,447			16,749,176
Non-Controlling Interest				1,867,454			1,811,961

Total Equity				18,981,901			18,561,137

Total Liabilities and Equity			W	43,144,379		W	42,709,982

The above consolidated interim statements of financial position should be read in conjunction with the accompanying notes.

KT Corporation and Its Subsidiaries

Consolidated Interim Statements of Profit or Loss

For the three-month and six-month periods ended June 30, 2024 and 2023


		Three-Month and Six-Month Periods Ended June 30
(In millions of Korean won, except per share amounts)	Notes	2024					2023
		Three-month			Six-month		Three-month		Six-month
Operating Revenue	19,27	W	6,546,399		W	13,200,973	W	6,547,521	W	12,991,197
Operating Expenses	20		6,052,413			12,200,487		5,971,413		11,928,984

Operating Profit	27		493,986			1,000,486		576,108		1,062,213
Other income	21		107,459			180,297		62,945		131,931
Other expenses	21		48,027			118,399		74,399		134,636
Finance income	22		218,356			468,632		126,026		299,360
Finance costs	22		212,032			452,524		148,498		375,279
Share of net profits (losses) of associates and joint ventures	10		(3,033	)		7,205		5,952		2,147

Profit before Income Tax			556,709			1,085,697		548,134		985,736
Income tax expense	23		146,168			282,153		115,635		243,609

Profit for the Period		W	410,541		W	803,544	W	432,499	W	742,127

Profit for the Period Attributable to:
Owners of the Controlling Company		W	393,025		W	768,555	W	394,533	W	691,147
Non-controlling interests			17,516			34,989		37,966		50,980
Earnings per share attributable to the equity holders of the Controlling Company during the period (in Korean won):	24
Basic earnings per share		W	1,598		W	3,122	W	1,580	W	2,734
Diluted earnings per share			1,597			3,120		1,578		2,731

The above consolidated interim statements of profit or loss should be read in conjunction with the accompanying notes.

KT Corporation and Its Subsidiaries

Consolidated Interim Statements of Comprehensive Income

For the three-month and six-month periods ended June 30, 2024 and 2023


		Three-Month and Six-Month Periods Ended June 30
(In millions of Korean won)	Notes	2024						2023
		Three-month			Six-month			Three-month			Six-month
Profit for the period		W	410,541		W	803,544		W	432,499		W	742,127

Other comprehensive income (loss)
Items that will not be reclassified to profit or loss:
Remeasurements of the net defined benefit liabilities	14		(1,251	)		(648	)		4,114			(1,296	)
Share of remeasurement gain of associates and joint ventures			(601	)		(696	)		(836	)		232
Gain on valuation of equity instruments at fair value through other comprehensive income	6		117,346			230,801			41,222			114,039
Items that are or may be subsequently reclassified to profit or loss:
Valuation gains (losses) on cash flow hedges	6		58,683			141,436			(9,247	)		47,349
Other comprehensive income from cash flow hedges reclassified to profit or loss			(66,223	)		(152,944	)		(8,388	)		(75,413	)
Share of other comprehensive income of associates and joint ventures			4,303			4,917			4,532			13,371
Exchange differences on translation of foreign operations			680			46,406			13,924			21,401

Other comprehensive income (loss) for the period, net of tax			112,937			269,272			45,321			119,683

Total comprehensive income for the period		W	523,478		W	1,072,816		W	477,820		W	861,810

Total comprehensive income for the period attributable to:
Owners of the Controlling Company		W	504,272		W	1,011,815		W	430,149		W	795,672
Non-controlling interests			19,206			61,001			47,671			66,138

The above consolidated interim statements of comprehensive income should be read in conjunction with the accompanying notes.

KT Corporation and Its Subsidiaries

Consolidated Interim Statements of Changes in Equity

For the six-month periods ended June 30, 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			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				—		—		691,147			—			—			691,147			50,980			742,127
Remeasurements of net defined benefit liabilities		14		—		—		1,291			—			—			1,291			(2,587	)		(1,296	)
Share of remeasurement of the net defined benefit liabilities of associates and joint ventures				—		—		223			—			—			223			9			232
Share of other comprehensive income of associates and joint ventures				—		—		—			10,303			—			10,303			3,068			13,371
Valuation gains (losses) on cash flow hedges		6		—		—		—			(27,888	)		—			(27,888	)		(176	)		(28,064	)
Valuation gains on financial instruments at fair value through other comprehensive income				—		—		222			113,822			—			114,044			(5	)		114,039
Exchange differences on translation of foreign operations				—		—		—			6,552			—			6,552			14,849			21,401

Total comprehensive income for the period				—		—		692,883			102,789			—			795,672			66,138			861,810

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 interests in subsidiaries				—		—		—			—			2,405			2,405			(7,608	)		(5,203	)
Appropriation of retained earnings related to loss on disposal of treasury stock				—		—		(44,422	)		—			44,422			—			—			—
Acquisition of treasury stock				—		—		—			—			(300,086	)		(300,086	)		—			(300,086	)
Others				—		—		—			—			7,029			7,029			1,751			8,780

Subtotal				—		—		(546,265	)		—			(246,230	)		(792,495	)		(30,298	)		(822,793	)

Balance as at June 30, 2023			W	1,564,499	W	1,440,258	W	14,403,961		W	25,013		W	(818,382	)	W	16,615,349		W	1,838,391		W	18,453,740

KT Corporation and Its Subsidiaries

Interim Consolidated Statements of Changes in Equity

For the six-month periods ended June 30, 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			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				—		—		768,555			—			—			768,555			34,989			803,544
Remeasurements of net defined benefit liabilities		14		—		—		556			—			—			556			(1,204	)		(648	)
Share of remeasurement of the net defined benefit liabilities of associates and joint ventures				—		—		(510	)		—			—			(510	)		(186	)		(696	)
Share of other comprehensive income of associates and joint ventures				—		—		—			4,463			—			4,463			454			4,917
Valuation gains (losses) on cash flow hedges		6		—		—		—			(11,219	)		—			(11,219	)		(289	)		(11,508	)
Valuation gains on financial instruments at fair value through other comprehensive income				—		—		1,414			229,077			—			230,491			310			230,801
Exchange differences on translation of foreign operations				—		—		—			19,479			—			19,479			26,927			46,406

Total comprehensive income for the period				—		—		770,015			241,800			—			1,011,815			61,001			1,072,816

Transactions with owners
Dividends paid by the Controlling Company				—		—		(482,970	)		—			—			(482,970	)		—			(482,970	)
Interim dividends paid by the Controlling Company				—		—		(122,859	)		—			—			(122,859	)		—			(122,859	)
Dividends paid to non-controlling interest of subsidiaries				—		—		—			—			—			—			(20,642	)		(20,642	)
Change in Consolidation Scope				—		—		—			—			—			—			(796	)		(796	)
Change in ownership interests in subsidiaries				—		—		—			—			(15,777	)		(15,777	)		14,562			(1,215	)
Acquisition of treasury stock				—		—		—			—			(27,100	)		(27,100	)		—			(27,100	)
Disposal of treasury stock				—		—		—			—			3,760			3,760			—			3,760
Retirement of treasury stocks				—		—		(205,956	)		—			205,956			—			—			—
Others				—		—		—			—			(1,598	)		(1,598	)		1,368			(230	)

Subtotal				—		—		(811,785	)		—			165,241			(646,544	)		(5,508	)		(652,052	)

Balance as of June 30, 2024			W	1,564,499	W	1,440,258	W	14,452,660		W	294,207		W	(637,177	)	W	17,114,447		W	1,867,454		W	18,981,901

The above consolidated interim statements of changes in equity should be read in conjunction with the accompanying notes.

KT Corporation and Its Subsidiaries

Consolidated Interim Statements of Cash Flows

For the six-month periods ended June 30, 2024 and 2023


			Six-Month Periods Ended June 30
(In millions of Korean won)	Notes		2024			2023
Cash flows from operating activities
Cash generated from operations		25	W	3,428,623		W	2,864,299
Interest paid				(214,215	)		(190,745	)
Interest received				188,726			173,784
Dividends received				48,179			37,661
Income tax paid				(214,987	)		(207,457	)

Net cash inflow from operating activities				3,236,326			2,677,542

Cash flows from investing activities
Collection of loans				18,672			22,240
Disposals of financial assets at fair value through profit or loss				74,119			65,088
Disposals of financial assets at amortized cost				949,781			924,623
Disposals of financial assets at fair value through other comprehensive income				7,851			306
Disposals of investments in associates and joint ventures				3,745			5,405
Disposals of property, equipment and investment properties				26,696			33,556
Disposals of intangible assets				4,069			4,641
Disposals of right-of-use assets				100			1,330
Disposals of derivatives				—			4,888
Increase in cash due to consolidation scope change				9,847			1,765
Loans granted				(14,278	)		(16,865	)
Acquisitions of financial assets at fair value through profit or loss				(105,687	)		(49,719	)
Acquisitions of financial assets at amortized cost				(546,754	)		(960,331	)
Acquisitions of financial assets at fair value through other comprehensive income				(1,000	)		(501	)
Acquisitions of investments in associates and joint ventures				(29,580	)		(42,911	)
Acquisitions of property and equipment and investment properties				(1,205,286	)		(1,690,823	)
Acquisitions of intangible assets				(345,359	)		(471,838	)
Acquisitions of right-of-use assets				(4,666	)		(568	)
Decrease in cash due to consolidation scope change				(10,310	)		(3,134	)

Net cash outflow from investing activities			W	(1,168,040	)	W	(2,172,848	)

KT CORPORATION and ITS SUBSIDIARIES

Consolidated Interim Statements of Cash Flows

For the six-month periods ended June 30, 2024 and 2023


		Six-Month Periods Ended June 30
(In millions of Korean won)	Notes	2024			2023
Cash flows from financing activities
Proceeds from borrowings		W	2,060,181		W	3,356,398
Cash inflow from derivatives contracts			1,118			26,593
Cash inflow from transactions with non-controlling shareholders			812			—
Cash inflow from other financing activities			130			2,017
Repayments of borrowings			(2,341,632	)		(3,497,760	)
Dividends paid			(626,429	)		(526,268	)
Decrease in finance lease liabilities			(200,555	)		(208,342	)
Decrease in other financial liabilities			—			(4	)
Acquisition of treasury stock			(27,100	)		(300,086	)
Cash outflow from transactions with non-controlling shareholders			(30,738	)		(3,085	)
Cash outflow from other financing activities			(36	)		—

Net cash outflow from financing activities			(1,164,249	)		(1,150,537	)

Effect of exchange rate change on cash and cash equivalents			3,133			2,278

Net increase (decrease) in cash and cash equivalents			907,170			(643,565	)
Cash and cash equivalents
Beginning of the period			2,879,554			2,449,062

End of the period		W	3,786,724		W	1,805,497

The above consolidated interim statements of cash flows should be read in conjunction with the accompanying notes.

KT Corporation and Its Subsidiaries

Notes to the Consolidated Interim Financial Statements

As of June 30, 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 82 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 address of the Controlling Company’s registered office is 90, Buljeong-ro, Bundang-gu, Seongnam City, Gyeonggi Province, Korea.

On October 1, 1997, upon the announcement of Act on the Management of the Government-Invested Institutions 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 June 30, 2024, the Korean government does not own any shares in the Controlling Company.

KT Corporation and Its Subsidiaries

Notes to the Consolidated Interim Financial Statements

As of June 30, 2024 and 2023, and December 31, 2023

1.2

Consolidated Subsidiaries

(1)

The consolidated subsidiaries as of June 30, 2024 and December 31, 2023, are as follows:


			Controlling Interest ¹(%)
Subsidiary	Type of business	Location	June 30, 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		66.1	%		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 Its Subsidiaries

Notes to the Consolidated Interim Financial Statements

As of June 30, 2024 and 2023, and December 31, 2023


			Controlling Interest ¹(%)
Subsidiary	Type of business	Location	June 30, 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
HCN Co., Ltd.	Cable television service	Korea		100.0	%		100.0	%	December
Millie Seojae ²	Book contents service	Korea		38.7	%		30.2	%	December
KT ES Pte. Ltd.	Foreign investment business	Singapore		68.8	%		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
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

KT Corporation and Its Subsidiaries

Notes to the Consolidated Interim Financial Statements

As of June 30, 2024 and 2023, and December 31, 2023


			Controlling Interest ¹(%)
Subsidiary	Type of business	Location	June 30, 2024			December 31, 2023			Closing month
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
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
KT Living, Inc. (formerly KD Living, Inc.)	Residential building management	Korea		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
BC Strategic Investment Fund 2	Investment fund	Korea		100.0	%		—		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 has the ability to 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, this entity is 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 Controlling Company.

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

KT Corporation and Its Subsidiaries

Notes to the Consolidated Interim Financial Statements

As of June 30, 2024 and 2023, and December 31, 2023

(2)

Changes in Scope of Consolidation

Subsidiaries newly included and excluded in the consolidation during the six-month period ended June 30, 2024:


Changes	Location	Name of subsidiary	Reason
Included	Korea	BC Strategic Investment Fund 2	Newly established
Excluded	Korea	Lolab Co., Ltd.	Excluded
Excluded	Korea	Pocheon Jeonggyori Development Co., Ltd.	Liquidated
Excluded	Vietnam	KT HEALTHCARE VINA COMPANY LIMITED	Excluded

KT Corporation and Its Subsidiaries

Notes to the Consolidated Interim Financial Statements

As of June 30, 2024 and 2023, and December 31, 2023

(3)

Summarized information for consolidated subsidiaries as of June 30, 2024 and December 31, 2023 and for the six-month periods ended June 30, 2024 and 2023, is as follows


(In millions of Korean won)	June 30, 2024				Six-month period ended June 30, 2024³
	Total assets		Total liabilities		Operating revenues		Profit(loss) for the period
KT Linkus Co., Ltd.	W	57,482		57,954		39,554		(1,335	)
KT Telecop Co., Ltd.		391,984		249,256		262,403		5,911
KT Alpha Co., Ltd.		429,865		173,140		214,323		13,533
KT Service Bukbu Co., Ltd.		56,093		52,874		110,547		(5,181	)
KT Service Nambu Co., Ltd.		62,364		56,856		137,851		(7,323	)
BC Card Co., Ltd. ¹		6,319,545		4,594,100		1,913,228		99,904
H&C Network		82,389		4,001		13,438		996
Nasmedia Co., Ltd. ¹		500,893		247,483		67,991		10,182
KTDS Co., Ltd. ¹		377,980		170,842		336,092		23,182
KT M&S Co., Ltd.		267,875		209,824		391,267		8,650
KT MOS Bukbu Co., Ltd.		54,976		31,831		49,590		826
KT MOS Nambu Co., Ltd.		54,023		31,625		49,984		1,571
KT Skylife Co., Ltd. ¹		1,276,393		546,879		509,026		(1,437	)
KT Estate Inc. ¹		2,607,700		959,544		291,521		13,540
KT GDH Co., Ltd.		7,837		1,390		2,101		188
KT Sat Co., Ltd.		717,505		90,889		90,339		15,580
KT Sports Co., Ltd.		45,377		27,934		42,130		2,133
KT Music Contents Fund No.2		5,343		1,526		65		31
KT M Mobile Co., Ltd.		185,361		72,651		167,951		5,205
KT Investment Co., Ltd. ¹		85,382		57,828		5,932		1,336
KTCS Corporation ¹		447,576		253,747		583,588		(902	)
KTIS Corporation		477,651		270,487		296,883		8,039
Next Connect PFV		1,133,755		821,975		—		(5,098	)
KT Japan Co., Ltd. ¹		1,797		2,866		1,600		183
KT America, Inc.		6,382		607		3,798		82
KT Rwanda Networks Ltd. ²		137,896		329,171		10,740		(4,447	)
AOS Ltd. ²		12,275		17,275		5,338		769
KT Hong Kong Telecommunications Co., Ltd.		12,093		5,147		10,205		386
KT Huimangjieum ¹		9,057		2,241		9,008		1,457
KT Engineering Co., Ltd.		138,204		82,418		130,292		(1,518	)
KT Studio Genie Co., Ltd. ¹		974,115		245,990		205,949		(3,176	)
East Telecom LLC ¹		72,685		39,352		17,619		4,767
KT ES Pte. Ltd. ¹		155,923		64,317		46,484		(6,764	)
KTP SERVICES INC.		2,826		662		398		101
Altimedia Corporation ¹		44,229		10,574		17,268		232
KT RUS LLC		452		—		—		(90	)
KT DX VIETNAM COMPANY LIMITED		1,581		91		159		(142	)

KT Corporation and Its Subsidiaries

Notes to the Consolidated Interim Financial Statements

As of June 30, 2024 and 2023, and December 31, 2023


(In millions of Korean won)	June 30, 2024				Six-month period ended June 30, 2024³
	Total assets		Total liabilities		Operating revenues		Profit(loss) for the period
KT Cloud Co., Ltd. ¹		2,033,100		537,007		355,253		14,548
K-Realty Qualified Private Real Estate Investment Trust No. 1		79,407		50,589		2,017		(755	)
AQUA RETAIL VIETNAM COMPANY LIMITED		845		94		211		(415	)

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 acquisition date of control to the end of the reporting period is included.

KT Corporation and Its Subsidiaries

Notes to the Consolidated Interim Financial Statements

As of June 30, 2024 and 2023, and December 31, 2023


(In millions of Korean won)		December 31, 2023				Six-month period ended June 30, 2023³
	Total assets		Total liabilities		Operating revenues		Profit(loss) for the period
KT Linkus Co., Ltd.	W	64,178		63,452		39,337		1,254
KT Telecop Co., Ltd.		375,596		235,947		262,124		3,216
KT Alpha Co., Ltd.		443,639		191,254		217,449		12,496
KT Service Bukbu Co., Ltd.		63,760		55,360		115,457		(2,482	)
KT Service Nambu Co., Ltd.		71,576		58,745		140,109		(2,491	)
BC Card Co., Ltd. ¹		6,352,878		4,722,432		2,002,365		30,635
H&C Network		81,107		4,863		13,728		933
Nasmedia Co., Ltd. ¹		513,311		262,336		67,510		7,646
KTDS Co., Ltd. ¹		393,667		202,067		340,777		18,873
KT M&S Co., Ltd.		258,477		209,075		320,488		3,215
KT MOS Bukbu Co., Ltd.		50,750		28,431		47,848		5,798
KT MOS Nambu Co., Ltd.		46,839		26,012		47,564		4,246
KT Skylife Co., Ltd. ¹		1,220,842		479,369		516,072		24,208
KT Estate Inc. ¹		2,664,880		1,021,741		258,212		10,979
KT GDH Co., Ltd.		7,760		1,501		2,233		303
KT Sat Co., Ltd.		699,607		88,524		86,592		13,567
KT Sports Co., Ltd.		26,615		11,299		30,107		(6,291	)
KT Music Contents Fund No.2		5,558		1,772		285		138
KT M Mobile Co., Ltd.		176,838		69,317		145,227		3,119
KT Investment Co., Ltd. ¹		83,638		57,420		23,019		3,681
KTCS Corporation ¹		434,900		234,850		470,984		9,910
KTIS Corporation		447,609		243,519		287,211		9,489
Next Connect PFV		946,687		629,809		—		(1,514	)
KT Japan Co., Ltd. ¹		2,015		3,341		1,382		(6	)
KT America, Inc.		6,013		701		4,562		86
KT Rwanda Networks Ltd. ²		134,847		313,787		16,247		(28,379	)
AOS Ltd. ²		10,763		1,983		4,129		680
KT Hong Kong Telecommunications Co., Ltd.		11,142		5,121		9,475		115
KT Huimangjieum ¹		8,073		2,715		8,159		1,359
KT Engineering Co., Ltd.		160,243		104,005		80,823		(5,235	)
KT Studio Genie Co., Ltd. ¹		989,187		259,413		233,832		14,975
Lolab Co., Ltd.		42,744		37,838		79,795		(6,841	)
East Telecom LLC ¹		48,483		22,632		14,594		3,373
KT ES Pte. Ltd.¹		117,009		90,392		43,125		(3,851	)
KTP SERVICES INC.		2,967		919		283		12
Altimedia Corporation ¹		48,381		12,374		21,909		2,768
KT RUS LLC		501		10		—		(382	)

KT Corporation and Its Subsidiaries

Notes to the Consolidated Interim Financial Statements

As of June 30, 2024 and 2023, and December 31, 2023


(In millions of Korean won)		December 31, 2023				Six-month period ended June 30, 2023³
	Total assets		Total liabilities		Operating revenues		Profit(loss) for the period
KT DX VIETNAM COMPANY LIMITED		1,694		102		23		(94	)
KT cloud Co., Ltd. ¹		1,983,972		503,241		302,433		18,345
KT HEALTHCARE VINA COMPANY LIMITED		12,730		439		—		(138	)
K-Realty Qualified Private Real Estate Investment Trust No. 1		80,266		50,693		1,965		(947	)
AQUA RETAIL VIETNAM COMPANY LIMITED		1,202		62		—		4

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 acquisition date of control to the end of the reporting period is included.

KT Corporation and Its Subsidiaries

Notes to the Consolidated Interim Financial Statements

As of June 30, 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 six-month period ended June 30, 2024, have been prepared in accordance with Korean IFRS 1034 Interim Financial Reporting. In order to understand the consolidated interim financial statements, the 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 Its Subsidiaries

Notes to the Consolidated Interim Financial Statements

As of June 30, 2024 and 2023, and December 31, 2023

The amendments also specify that the right to defer settlement of a liability for at least twelve months after the reporting date is not affected if an entity must only 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 is 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 Its Subsidiaries

Notes to the Consolidated Interim Financial Statements

As of June 30, 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, set 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 must 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 and clarify the assessment of the exchangeability with other currencies, the estimation 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 Its Subsidiaries

Notes to the Consolidated Interim Financial Statements

As of June 30, 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.

2.3.1

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, they pose significant risk of resulting in a material adjustment.

KT Corporation and Its Subsidiaries

Notes to the Consolidated Interim Financial Statements

As of June 30, 2024 and 2023, and December 31, 2023

4.	Financial Instruments by Category

Financial instruments by category as of June 30, 2024 and December 31, 2023, are as follows:


(In millions of Korean won)	June 30, 2024
Financial assets	Financial assets at amortized cost		Financial assets at FVTPL		Financial assets at FVOCI		Derivatives used for hedging		Total
Cash and cash equivalents	W	3,786,724		—		—		—		3,786,724
Trade and other receivables		8,148,722		—		112,860		—		8,261,582
Other financial assets		1,002,142		1,064,624		1,983,633		324,845		4,375,244

(In millions of Korean won)	June 30, 2024
Financial liabilities	Financial liabilities at amortized cost		Financial liabilities at FVTPL		Derivatives used for hedging		Others		Total
Trade and other payables¹	W	8,007,446		—		—		—		8,007,446
Borrowings		10,150,585		—		—		—		10,150,585
Other financial liabilities		906,785		113,329		1,684		—		1,021,798
Lease liabilities		—		—		—		1,138,425		1,138,425

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 FVTPL		Financial assets at FVOCI		Derivatives used for hedging		Total
Cash and cash equivalents	W	2,879,554		—		—		—		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 FVTPL		Derivatives used for hedging		Others		Total
Trade and other payables¹	W	8,317,822		—		—		—		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 Its Subsidiaries

Notes to the Consolidated Interim Financial Statements

As of June 30, 2024 and 2023, and December 31, 2023

5.	Trade and Other Receivables

(1)

Trade and other receivables as of June 30, 2024 and December 31, 2023, are as follows:


(In millions of Korean won)	June 30, 2024
	Total amounts		Provision for impairment			Present value discount			Carrying amount
Current assets
Trade receivables	W	3,543,584		(363,387	)		(8,896	)		3,171,301
Other receivables		3,807,265		(94,357	)		(2,333	)		3,710,575

Total		7,350,849		(457,744	)		(11,229	)		6,881,876

Non-current assets
Trade receivables		261,774		(1,295	)		(16,224	)		244,255
Other receivables		1,244,964		(96,551	)		(12,962	)		1,135,451

Total	W	1,506,738		(97,846	)		(29,186	)		1,379,706


(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		(330,002	)		(9,165	)		3,257,732
Other receivables		3,990,900		(76,089	)		(2,254	)		3,912,557

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

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

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

KT Corporation and Its Subsidiaries

Notes to the Consolidated Interim Financial Statements

As of June 30, 2024 and 2023, and December 31, 2023

(2)

Details of other receivables as of June 30, 2024 and December 31, 2023, are as follows:


(In millions of Korean won)	June 30, 2024			December 31, 2023
Loans	W	43,058			51,854
Receivables ¹		3,407,553			3,539,742
Accrued income		52,143			43,920
Refundable deposits		268,403			299,935
Loans receivable		1,058,088			1,067,005
Finance lease receivables		151,747			141,883
Others		55,942			58,357
Less: Provision for impairment		(190,908	)		(183,636	)

Total	W	4,846,026			5,019,060

¹	As of June 30, 2024, credit sales asset of W 2,551,310 million (December 31, 2023: W 2,696,505 million) held by BC Card Co., Ltd. are included.

(3)

The maximum exposure to credit risks for trade and other receivables is the carrying amount of each class of receivables mentioned above as of June 30, 2024.

(4)

The Group classifies a certain portion of trade receivables as financial assets at FVOCI, based on, business model for managing the asset and the cash flow characteristics of the contract.

KT Corporation and Its Subsidiaries

Notes to the Consolidated Interim Financial Statements

As of June 30, 2024 and 2023, and December 31, 2023

6.	Other Financial Assets and Liabilities

(1)

Details of other financial assets and liabilities as of June 30, 2024 and December 31, 2023, are as follows:


(In millions of Korean won)	June 30, 2024			December 31, 2023
Other financial assets
Financial assets at amortized cost ¹	W	1,002,142			1,385,921
Financial assets at FVTPL ^1,2		1,064,624			939,661
Financial assets at FVOCI		1,983,633			1,680,168
Derivatives used for hedging		324,845			159,211
Less: Non-current		(3,070,502	)		(2,724,761	)

Current	W	1,304,742			1,440,200

Other financial liabilities
Financial liabilities at amortized cost ^3,4	W	906,785			915,185
Financial liabilities at FVTPL		113,329			136,106
Derivatives used for hedging		1,684			24,547
Less: Non-current		(696,966	)		(753,739	)

Current	W	324,832			322,099

¹	As of June 30, 2024, the Group’s financial instruments amount to W116,822 million (December 31, 2023: W 98,309 million) and consist of checking account deposits, time deposits, and others which are subject to withdrawal restrictions.

²	As of June 30, 2024, the Group provided investments in Korea Software Financial Cooperative and others amounting to W9,485 million as a collateral in exchange for the payment guarantee provided by the Korea Software Financial Cooperative and others.

³	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).

⁴	The amount includes liabilities convertible preferred Stock issued by 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 June 30, 2024 and December 31, 2023, are as follows:


(In millions of Korean won)	June 30, 2024			December 31, 2023
Equity instruments (Listed)	W	8,042			13,911
Equity instruments (Unlisted)		41,886			42,185
Debt securities		1,007,044			880,549
Derivatives held for trading ¹		7,652			3,016

Total		1,064,624			939,661
Less: Non-current		(841,814	)		(782,143	)

Current	W	222,810			157,518

¹	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 June 30, 2024 (Note 15).

KT Corporation and Its Subsidiaries

Notes to the Consolidated Interim Financial Statements

As of June 30, 2024 and 2023, and December 31, 2023

The maximum exposure to credit risks for debt instruments of financial assets at fair value through profit or loss is the carrying amount of each class of debt instruments above as of June 30, 2024.

(3)

Financial Assets at fair value through other comprehensive income

Details of financial assets at fair value through other comprehensive income as of June 30, 2024 and December 31, 2023, are as follows:


(In millions of Korean won)	June 30, 2024			December 31, 2023
Equity instruments (Listed)	W	1,533,518			1,231,188
Equity instruments (Unlisted)		444,198			443,067
Debt securities		5,917			5,913

Total		1,983,633			1,680,168
Less: Non-current		(1,983,633	)		(1,680,168	)

Current	W	—			—

Upon disposal of these equity investments, any balance within the accumulated other comprehensive income is reclassified not 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 June 30, 2024 and December 31, 2023, are as follows:


(In millions of Korean won)	June 30, 2024 Assets Liabilities				December 31, 2023 Assets Liabilities
Interest rate swap ¹	W	1,729		82		1,530		191
Currency swap ²		323,116		1,602		157,681		24,356

Total		324,845		1,684		159,211		24,547
Less: Non-current		(239,899	)	—		(107,802	)	(23,696	)

Current	W	84,946		1,684		51,409		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 within 12 months.

KT Corporation and Its Subsidiaries

Notes to the Consolidated Interim Financial Statements

As of June 30, 2024 and 2023, and December 31, 2023

Details of valuation gains and losses on the derivative instruments for the six-month periods ended June 30, 2024 and 2023, are as follows:


(In millions of Korean won)
	2024							2023
Type of transaction	Valuation gain		Valuation loss		Other comprehensive loss¹			Valuation gain		Valuation loss		Other comprehensive loss¹
Interest rate swap	W	31		—		324			—		31		(1,353	)
Currency swap		202,420		354		(15,642	)		96,663		185		(36,178	)

Total	W	202,451		354		(15,318	)		96,663		216		(37,531	)

¹	The amounts are before adjustments for deferred income tax and allocations to non-controlling interests and have been directly reflected in equity.

The ineffective portion recognized in profit or loss relate to cash flow hedges is valuation gain of W1,302 million for the six-month periods ended June 30, 2024 (For the Six-month periods ended June 30, 2023: valuation gain of W958 million).

(5)

Financial Liabilities at fair value through profit or loss

Details of financial liabilities at fair value through profit or loss as of June 30, 2024 and December 31, 2023, are as follows:


(In millions of Korean won)	June 30, 2024		December 31, 2023
Derivatives held for trading ^1,2	W	113,329		136,106

The Group signed a shareholder-to-share agreement with financial investors participating in the paid-in capital increase of K Bank Inc. for the six-month period ended June 30, 2024. According to the Drag-Along Right, if K Back inc. 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. (Note 15).

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

KT Corporation and Its Subsidiaries

Notes to the Consolidated Interim Financial Statements

As of June 30, 2024 and 2023, and December 31, 2023

The valuation gain and loss on financial liabilities at fair value through profit or loss for the six-month periods ended June 30, 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

22,777

—

22,808

7.	Inventories

Inventories as of June 30, 2024 and December 31, 2023, are as follows:


(In millions of Korean won)
	June 30, 2024							December 31, 2023
	Acquisition cost		Valuation allowance			Carrying amount		Acquisition cost		Valuation allowance			Carrying amount
Merchandise	W	1,011,164		(78,966	)		932,198		981,127		(102,215	)		878,912
Others		31,846		—			31,846		33,350		—			33,350

Total	W	1,043,010		(78,966	)		964,044		1,014,477		(102,215	)		912,262

Cost of inventories recognized as expenses for the six-month period ended June 30, 2024 amounts to W1,687,715 million (For the six-month periods ended June 30, 2023: W 1,574,186 million) and reversal inventory valuation loss amounts to W23,249 million for the six-month period ended June 30, 2024 (For the six-month periods ended June 30, 2023: reversal valuation loss on inventory of W6,683 million).

KT Corporation and Its Subsidiaries

Notes to the Consolidated Interim Financial Statements

As of June 30, 2024 and 2023, and December 31, 2023

8.	Other Assets and Liabilities

Other assets and liabilities as of June 30, 2024 and December 31, 2023, are as follows:


(In millions of Korean won)	June 30, 2024			December 31, 2023
Other assets
Advance payments	W	262,255			217,997
Prepaid expenses		231,769			146,628
Contract cost		1,705,013			1,727,468
Contract assets		837,364			832,520
Others		14,372			15,237
Less: Non-current		(815,303	)		(827,297	)

Current	W	2,235,470			2,112,553

Other liabilities
Advances received ¹	W	914,965			582,652
Withholdings		128,198			159,080
Unearned revenue ¹		29,683			27,392
Lease liabilities		1,138,425			1,179,909
Contract liabilities		274,795			278,749
Others		24,031			30,848
Less: Non-current		(872,337	)		(950,015	)

Current	W	1,637,760			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 Its Subsidiaries

Notes to the Consolidated Interim Financial Statements

As of June 30, 2024 and 2023, and December 31, 2023

9.	Property and Equipment, Investment Properties, and Intangible Assets

(1)

Changes in property and equipment for six-month period ended June 30, 2024 and 2023, are as follows:


(In millions of Korean won)	2024			2023
Beginning, net	W	14,872,079			14,772,179
Acquisition and capital expenditure		1,233,426			1,417,303
Disposal and termination		(38,785	)		(38,069	)
Depreciation		(1,399,430	)		(1,346,129	)
Transfer to investment properties		(43,710	)		(130,250	)
Changes in consolidation scope		(1,326	)		76,631
Impairment		—			(522	)
Others		(30,541	)		(75,579	)

Ending, net	W	14,591,713			14,675,564

Details of properties and equipments and Investment Properties provided as collateral as of June 30, 2024 and December 31, 2023, are as follows:

(In millions of Korean won)

June 30, 2024

Collateral

Carrying
amount

Secured
amount

Related
account

Related
amount

Secured

party

Land and buildings

80,356

65,880

Borrowings

54,900

Industrial Bank of Korea

ShinhanBank

Standard Chartered Bank Korea

Land and Buildings

550,370

66,289

Deposits

56,746

Lessee

(In millions of Korean won)

December 31, 2023

Collateral

Carrying
amount

Secured
amount

Related
account

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 Its Subsidiaries

Notes to the Consolidated Interim Financial Statements

As of June 30, 2024 and 2023, and December 31, 2023

(2)

Changes in investment properties for the six-month period ended June 30, 2024 and 2023, are as follows:


(In millions of Korean won)	2024			2023
Beginning, net	W	2,198,135			1,933,358
Acquisition		37,403			61,659
Disposal		(1,772	)		(4,228	)
Depreciation		(26,537	)		(25,325	)
Transfer to investment properties		43,710			130,250
Others		(865	)		(1,922	)

Ending, net	W	2,250,074			2,093,792

As of June 30, 2024, the Group (Lessor) has entered into a non-cancellable operating lease contract for real estate. The future minimum lease payments under this contract amount to W 108,434 million for one year or less, W 131,863 million for more than one year and less than five years, W 14,186 million for over five years, and W 254,483 million in total.

(3)

Changes in intangible assets for the six-month period ended June 30, 2024 and 2023, are as follows:


(In millions of Korean won)	2024			2023
Beginning, net	W	2,533,861			3,129,833
Acquisition and capital expenditure ¹		77,106			236,076
Disposal and termination		(11,797	)		(7,367	)
Amortization		(335,071	)		(386,055	)
Impairment		(857	)		(695	)
Changes in consolidation scope		(9,371	)		6,207
Others		12,445			26,114

Ending, net	W	2,266,316			3,004,113

¹	Amounts include transfers from property and equipment.

The carrying amount of intangible assets with indefinite useful lives, including membership rights (except for goodwill), that are not subject to amortization, is W203,954 million as of June 30, 2024 (December 31, 2023: W212,910 million).

KT Corporation and Its Subsidiaries

Notes to the Consolidated Interim Financial Statements

As of June 30, 2024 and 2023, and December 31, 2023

Goodwill is allocated to the Group’s cash-generating units, which are identified by operating segments. As of June 30, 2024, the 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.		49,205
KT MOS Bukbu Co., Ltd. and others		45,840

Total	W	490,449

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 value in use was calculated using pre-tax cash flow estimates based on financial budgets, 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 has determined revenue growth 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 associated with related operations.

KT Corporation and Its Subsidiaries

Notes to the Consolidated Interim Financial Statements

As of June 30, 2024 and 2023, and December 31, 2023

10.

Investments in Associates and Joint Ventures

(1)

Details of associates as of June 30, 2024 and December 31, 2023, are as follows:


	Percentage of ownership (%)						Location		Closing month
	June 30, 2024			December 31, 2023			Location		Closing month
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,		6.6	%		7.3	%		Korea		December

¹	Although the Group holds less than 20% interest in ordinary share as of June 30, 2024, these entities are included in investments in associates as the Group exerts significant influence over operational and financial policies.

(2)

Changes in investments in associates and joint ventures for the six-month period ended June 30, 2024 and 2023, are as follows:


(In millions of Korean won)	2024
	Beginning		Acquisition (Disposal)			Share of net profit (loss) from associates and joint ventures ¹			Others			Ending
KIF Investment Fund	W	177,054		—			579			983			178,616
K Bank Inc.		872,881		—			28,235			1,762			902,878
HD Hyundai Robotics Co., Ltd.		47,734		—			717			(646	)		47,805
Megazone Cloud Corporation		131,694		—			(1,684	)		1,218			131,228
IGIS No. 468-1 General Private Real Estate Investment Company		23,484		—			(53	)		—			23,431
KT-DSC Creative Economy Youth Start-up Investment Fund		25,117		(275	)		(5,817	)		(1,505	)		17,520
IGIS Professional Investors Private Investment Real Estate Investment LLC No 395		11,942		—			(1,208	)		—			10,734
LS Marine Solution Co., Ltd.		23,492		—			237			(291	)		23,438
Others¹		243,491		27,186			(13,854	)		273			257,096

Total	W	1,556,889		26,911			7,152			1,794			1,592,746

KT Corporation and Its Subsidiaries

Notes to the Consolidated Interim Financial Statements

As of June 30, 2024 and 2023, and December 31, 2023


(In millions of Korean won)	2023
	Beginning		Acquisition (Disposal)			Share of net profit (loss) from associates and joint ventures ¹			Others			Ending
KIF Investment Fund	W	170,979		—			1,122			300			172,401
K Bank Inc.		852,756		—			6,222			10,173			869,151
HD Hyundai Robotics Co., Ltd.		49,372		—			252			(155	)		49,469
Megazone Cloud Corporation		136,199		—			(3,117	)		799			133,881
IGIS No. 468-1 General Private Real Estate Investment Company		23,589		—			(54	)		—			23,535
KT-DSC Creative Economy Youth Start-up Investment Fund		22,123		(500	)		1,985			—			23,608
IGIS Professional Investors Private Investment Real Estate Investment LLC No 395		16,620		—			(715	)		—			15,905
Others¹		209,084		39,877			(3,498	)		(7,116	)		238,347

Total	W	1,480,722		39,377			2,197			4,001			1,526,297

KT Investment Co., Ltd., a subsidiary of the Group, recognized net profit (loss) in the investments in associates as operating income. Net profit recognized as operating income for the six-months period ended June 30, 2024 amount to W85 million (six-month period ended June 30, 2023: net profit of W51 million).

KT Corporation and Its Subsidiaries

Notes to the Consolidated Interim Financial Statements

As of June 30, 2024 and 2023, and December 31, 2023

(3)

Summarized statements of financial position of the major associates and joint ventures as of June 30, 2024 and December 31, 2023 and summarized statements of profit or loss for the six-month period ended June 30, 2024 and 2023, are as follows:


(In millions of Korean won)	June 30, 2024
	Assets		Liabilities		Operating revenue		Profit(loss) for the period
KIF Investment Fund	W	535,848		—		14,380		1,736
K Bank Inc.		24,284,996		22,328,766		569,666		85,989
HD Hyundai Robotics Co., Ltd.		389,364		118,740		111,536		4,175
Megazone Cloud Corporation		1,073,641		480,069		839,184		(6,038	)
IGIS No. 468-1 General Private Real Estate Investment Company		52,498		11		3		(118	)
KT-DSC Creative Economy Youth Start-up Investment Fund		61,724		404		3,994		(20,358	)
IGIS Professional Investors Private Investment Real Estate Investment LLC No 395		162,345		114,060		—		(172	)
LS Marine Solution Co., Ltd.		194,799		37,328		52,043		3,821


(In millions of Korean won)	December 31, 2023				June 30, 2023
	Assets		Liabilities		Operating revenue		Profit(loss) for the period
KIF Investment Fund	W	531,163		—		15,474		3,368
K Bank Inc		21,410,602		19,545,592		447,675		23,614
HD Hyundai Robotics Co., Ltd.		386,292		116,332		80,234		(1,427	)
Megazone Cloud Corporation		1,142,383		546,766		710,068		(7,239	)
IGIS No. 468-1 General Private Real Estate Investment Company		52,616		11		3		(121	)
KT-DSC Creative Economy Youth Start-up Investment Fund		88,010		101		10,659		6,948
IGIS Professional Investors Private Investment Real Estate Investment LLC No 395		151,459		107,553		—		(154	)
LS Marine Solution Co., Ltd.		147,074		24,113		26,527		6,186

(4)

Due to discontinuance of equity method of accounting, the Group has not recognized loss from associates and joint ventures of W542 million for the six-month period June 30, 2024 (six-month period ended June 30, 2023: W334 million). The unrecognized accumulated comprehensive loss of associates and joint ventures as of June 30, 2024 is W6,724 million (December 31, 2023: W10,748 million).

KT Corporation and Its Subsidiaries

Notes to the Consolidated Interim Financial Statements

As of June 30, 2024 and 2023, and December 31, 2023

11.

Trade and Other Payables

(1)

Details of trade and other payables as of June 30, 2024 and December 31, 2023, are as follows:


(In millions of Korean won)	June 30, 2024		December 31, 2023
Current liabilities
Trade payables	W	1,427,914		1,297,752
Other payables		6,624,391		6,757,170

Total	W	8,052,305		8,054,922

Non-current liabilities
Trade payables		922		3,202
Other payables	W	555,314		816,356

Total	W	556,236		819,558

(2)

Details of other payables as of June 30, 2024 and December 31, 2023, are as follows:


(In millions of Korean won)	June 30, 2024			December 31, 2023
Non-trade payables ¹	W	4,511,468			5,207,165
Accrued expenses		1,586,144			1,267,700
Operating deposits		858,278			880,810
Others		223,815			217,851
Less: non-current		(555,314	)		(816,356	)

Current	W	6,624,391			6,757,170

¹	As of June 30, 2024, credit sale liabilities amounting to W 2,182,324 million (December 31, 2023: W2,314,077 million) held by BC Card Co., Ltd. (a subsidiary of the Group) are included

KT Corporation and Its Subsidiaries

Notes to the Consolidated Interim Financial Statements

As of June 30, 2024 and 2023, and December 31, 2023

12.

Borrowings

(1)

Details of borrowings as of June 30, 2024 and December 31, 2023, are as follows:

Debentures


(In millions of Korean won and foreign currencies in thousands)			June 30, 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	138,920		USD 100,000	W	128,940
MTNP notes	Jul. 18, 2026	2.500%		USD 400,000		555,680		USD 400,000		515,760
MTNP notes	Jul. 19, 2024	0.330%		JPY 400,000		3,457		JPY 400,000		3,651
MTNP notes	Sep. 01, 2025	1.000%		USD 400,000		555,680		USD 400,000		515,760
FR notes ²	Nov. 01, 2024	Compounded SOFR+1.210%		USD 350,000		486,220		USD 350,000		451,290
MTNP notes	Jan. 21, 2027	1.375%		USD 300,000		416,760		USD 300,000		386,820
MTNP notes	Aug. 08, 2025	4.000%		USD 500,000		694,600		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	—		—		—		—		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

KT Corporation and Its Subsidiaries

Notes to the Consolidated Interim Financial Statements

As of June 30, 2024 and 2023, and December 31, 2023


(In millions of Korean won and foreign currencies in thousands)			June 30, 2024				December 31, 2023
Type	Maturity	Annual interest rates	Foreign currency		Korean won		Foreign currency		Korean won
The 194-4th Public bond	Jan. 25, 2041	1.976%		—		80,000		—		80,000
The 195-1st Public bond	Jun. 10, 2024	—		—		—		—		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
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 19-1nd unsecured bond	Jun. 12, 2027	3.691%		—		50,000		—		—
The 19-2nd unsecured bond	Jun. 12, 2029	3.783%		—		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	—		—		—		—		30,000
The 151-2nd Won-denominated unsecured bond	May. 14, 2024	—		—		—		—		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

KT Corporation and Its Subsidiaries

Notes to the Consolidated Interim Financial Statements

As of June 30, 2024 and 2023, and December 31, 2023


(In millions of Korean won and foreign currencies in thousands)			June 30, 2024				December 31, 2023
Type	Maturity	Annual interest rates	Foreign currency		Korean won		Foreign currency		Korean won
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
The 160-1st Won-denominated unsecured bond	Jun. 14, 2024	—		—		—		—		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	—		—		—		—		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	—		—		—		—		10,000
The 163-1st Won-denominated unsecured bond	Feb. 20, 2026	4.059%		—		20,000		—		20,000

KT Corporation and Its Subsidiaries

Notes to the Consolidated Interim Financial Statements

As of June 30, 2024 and 2023, and December 31, 2023


(In millions of Korean won and foreign currencies in thousands)			June 30, 2024				December 31, 2023
Type	Maturity	Annual interest rates	Foreign currency		Korean won		Foreign currency		Korean won
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	—		—		—		—		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
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		—		—

KT Corporation and Its Subsidiaries

Notes to the Consolidated Interim Financial Statements

As of June 30, 2024 and 2023, and December 31, 2023


(In millions of Korean won and foreign currencies in thousands)			June 30, 2024					December 31, 2023
Type	Maturity	Annual interest rates	Foreign currency		Korean won			Foreign currency		Korean won
The 168-3rd Won-denominated unsecured bond	Oct. 02, 2025	3.724%		—		40,000			—		—
The 169th Won-denominated unsecured bond	Apr. 04, 2025	3.671%		—		50,000			—		—
The 170th Won-denominated unsecured bond	Jun. 12, 2025	3.688%		—		50,000			—		—

Subtotal						8,621,317					8,446,921
Less: Current portion						(2,578,761	)				(1,924,523	)
Discount on bonds						(18,262	)				(19,248	)

Total					W	6,024,294				W	6,503,150

As of June 30, 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 on 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 5.330% as of June 30, 2024.

³	The CMS (5Y) and CMS (10Y) is approximately 3.145% and 3.150%, respectively as of June 30, 2024.

KT Corporation and Its Subsidiaries

Notes to the Consolidated Interim Financial Statements

As of June 30, 2024 and 2023, and December 31, 2023

Convertible bonds


(In millions of Korean won)
Type	Issuance Date		Maturity		Annual interest Rate		June 30, 2024			December 31, 2023
The 1st CB (Private) ¹		Jun. 5, 2020		Jun. 5, 2025		²	W	8,000			8,000
Redemption premium								2,267			2,267
Conversion rights adjustment								(1,220	)		(1,811	)

Subtotal								9,047			8,456
Less: Current portion								(9,047	)		(8,456	)

Total							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)

June 30, 2024

December 31, 2023

Type

Financial institution

Annual interest rates

Foreign
currency

Korean
won

Foreign
currency

Korean
won

Operational

—

71,000

—

151,500

Shinhan Bank

4.370%~6.200%

—

91,890

—

70,000

Market Data

News

Trading Tools

Markets

Discover

Hot Features

Follow Feed

Options Flow

Monitor

KT KT Corp

Trending Now

Toplists

Market Data

News

Trading Tools

Markets

Discover

Hot Features

Follow Feed

Options Flow

Monitor

KT KT Corp