General Information | 1. General Information The consolidated financial statements as of December 31, 202 0 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 telephone 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, 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), representing new shares and 20,813,311 government-owned shares, at the New York Stock Exchange. On July 2, 2001, the additional ADS representing 55,502,161 government-owned shares were issued at 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 at the end of the reporting period, the Korean government does not own any share in the Controlling Company. 1.2 Consolidated Subsidiaries The consolidated subsidiaries as at December 31, 2019 and 2020, are as follows: Controlling percentage 1 Subsidiary Type of business Location December 31, December 31, Closing month KT Powertel Co., Ltd. 2 Trunk Radio System (TRS) business Korea 44.8% 44.8% December KT Linkus Co., Ltd. Public telephone maintenance Korea 92.4% 92.4% December KT Submarine Co., Ltd. 2,4 Submarine cable construction and maintenance Korea 39.3% 39.3% December KT Telecop Co., Ltd. Security service Korea 86.8% 86.8% December KT Hitel Co., Ltd. Data communication Korea 67.1% 67.1% 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.2 Investment fund 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 Investment fund Korea 100.0% 100.0% December BC Card Co., Ltd. Credit card business Korea 69.5% 69.5% December VP Inc. Payment security service for credit card, others Korea 50.9% 50.9% December H&C Network Call centre 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. 4 Internet banking ASP and security solutions Korea 58.2% 58.2% December Smartro Co., Ltd. VAN (Value Added Network) business Korea 64.5% 64.5% December KTDS Co., Ltd. 4 System integration and maintenance Korea 95.5% 95.5% December KT M Hows Co., Ltd. Mobile marketing Korea 90.0% 90.0% December KT M&S Co., Ltd. PCS distribution Korea 100.0% 100.0% December GENIE Music Corporation (KT Music Corporation) 2,4 Online music production and distribution Korea 36.0% 36.2% December KT MOS Bukbu Co., Ltd. 4 Telecommunication facility maintenance Korea 100.0% 100.0% December KT MOS Nambu Co., Ltd. 4 Telecommunication facility maintenance Korea 98.4% 98.4% December KT Skylife Co., Ltd. 4 Satellite broadcasting business Korea 50.3% 50.3% December Skylife TV Co., Ltd. TV contents provider Korea 92.6% 92.6% December KT Estate Inc. Residential building development and supply Korea 100.0% 100.0% December KT AMC Co., Ltd. Asset management and consulting services Korea 100.0% 100.0% December NEXR Co., Ltd. Cloud system implementation Korea 100.0% 100.0% December KTGDH Co., Ltd. (KTSB Data Service) Data centre 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. 3,4 Solution provider and IPTV advertisement sales business Korea 44.0% 44.0% December KT Sports Co., Ltd. Management of sports group Korea 100.0% 100.0% December KT Music Contents Fund No.1 Music contents investment business Korea 80.0% 80.0% December KT Music Contents Fund No.2 Music contents investment business Korea 100.0% 100.0% December KT-Michigan Content investment business Korea 88.6% 88.6% December Autopion Co., Ltd. Information and communication service Korea 100.0% 100.0% December KTCS Corporation 2,4 Database and online information provider Korea 30.9% 31.9% December KTIS Corporation 2,4 Database and online information provider Korea 30.1% 30.8% December KT M Mobile Co., Ltd. Special category telecommunications operator and sales of communication device Korea 100.0% 100.0% December KT Investment Co., Ltd. Technology business finance Korea 100.0% 100.0% December Whowho&Company Co., Ltd. Software development and supply Korea 100.0% 100.0% December PlayD Co., Ltd. (N Search Marketing Co., Ltd.) Advertising agency Korea 100.0% 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 Belgium Foreign investment business Belgium 100.0% 100.0% December Korea Telecom Japan Co., Ltd. Foreign telecommunication business Japan 100.0% 100.0% December KBTO sp.z o.o. Electronic communication business Poland 97.2% 97.4% December Korea Telecom China Co., Ltd. Foreign telecommunication business China 100.0% 100.0% December KT Dutch B.V. Super iMax and East Telecom management Netherlands 100.0% 100.0% December East Telecom LLC Fixed line telecommunication business Uzbekistan 91.0% 91.6% December Korea Telecom America, Inc. Foreign telecommunication business USA 100.0% 100.0% December PT. BC Card Asia Pacific Software development and supply Indonesia 99.9% 99.9% December KT Hong Kong Telecommunications Co., Ltd. Fixed line communication business Hong Kong 100.0% 100.0% December Korea Telecom Singapore Pte. Ltd. Foreign investment business 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 provider Thailand 99.9% 99.9% December KT Huimangjieum Manufacturing Korea 100.0% 100.0% December GE Premier 1st Corporate Restructuring Real Estate Investment Trust Co. Residential building investment and rent Korea 63.5% 68.1% December K-REALTY Residential building Korea 100.0% 88.6% December Storywiz Co., Ltd Content and software development and supply Korea — 100.0% December KT Engineering Co., Ltd. (KT ENGCORE Co., Ltd.) Telecommunication facility construction and maintenance Korea — 100.0% December 1 Sum of the ownership interests owned by the Controlling Company and subsidiaries. 2 Although the Controlling Company owns less than 50% ownership in this entity, this entity is consolidated as the Controlling Company can exercise the majority voting rights in its decision-making process at all times considering the historical voting pattern at the shareholders’ meetings. 3 Although the Controlling Company owns less than 50% ownership in this entity, this entity is consolidated as the Controlling Company holds the majority of voting right based on an agreement with other investors. 4 The number of subsidiaries’ treasury stock is deducted from the total number of shares when calculating the controlling percentage ownership. Changes in scope of consolidation in 2020 are as follows: Changes Location Name of Subsidiary Reason Included Korea Storywiz Co., Ltd Newly established Korea KT Engineering Co., Ltd. (KT ENGCORE Co., Ltd.) Transferred Excluded Uzbekistan Super iMax LLC Merged Indonesia PT. KT Indonesia Liquidated Belgium KT ORS Belgium Liquidated Summarized information for consolidated subsidiaries as at and for the years ended December 31, 2018, 2019 and 2020, is as follows: (In millions of Korean won) 2018 Total Total Operating Profit (loss) for the year KT Powertel Co., Ltd. ₩ 124,064 ₩ 28,217 ₩ 65,620 ₩ (5,545 ) KT Linkus Co., Ltd. 54,147 44,895 106,337 1,216 KT Submarine Co., Ltd. 130,715 27,530 61,652 (4,286 ) KT Telecop Co., Ltd. 272,492 140,314 328,262 166 KT Hitel Co., Ltd. 272,708 66,043 279,117 657 KT Service Bukbu Co., Ltd. 30,599 23,964 195,961 (31 ) KT Service Nambu Co., Ltd. 37,452 27,939 230,088 160 BC Card Co., Ltd. 1 3,722,379 2,630,536 3,551,715 70,889 H&C Network 1 245,841 63,188 297,470 (15,944 ) Nasmedia Co., Ltd. 1 303,112 161,164 106,805 20,596 KTDS Co., Ltd. 1 148,675 95,834 434,302 8,586 KT M Hows Co., Ltd. 60,197 42,386 26,673 3,691 KT M&S Co., Ltd. 228,073 207,740 791,652 11,408 GENIE Music Corporation (KT Music Corporation) 221,559 75,827 171,314 6,374 KT MOS Bukbu Co., Ltd. 14,121 10,571 16,543 (782 ) KT MOS Nambu Co., Ltd. 14,313 8,927 14,941 (2,418 ) KT Skylife Co., Ltd. 1 816,001 149,841 694,059 52,010 KT Estate Inc. 1 1,695,995 304,712 569,269 51,854 KTGDH Co., Ltd. (KTSB Data service) 8,632 523 4,627 (9,576 ) KT Sat Co., Ltd. 685,926 173,513 137,186 4,921 KT Sports Co., Ltd. 9,560 6,376 55,565 (154 ) KT Music Contents Fund No.1 14,092 1,035 559 294 KT Music Contents Fund No.2 7,629 281 150 (142 ) KT-Michigan 12,741 — 869 (670 ) Autopion Co., Ltd. 8,838 5,801 12,035 453 KT M mobile Co., Ltd. 146,334 35,335 172,674 (10,085 ) KT Investment Co., Ltd. 1 74,580 58,040 8,095 247 KTCS Corporation 1 350,280 188,561 1,019,787 11,401 KTIS Corporation 229,246 68,997 451,532 7,900 Next connect PFV 385,769 34,370 143 (12,449 ) Korea Telecom Japan Co., Ltd. 1 1,326 2,910 1,965 (126 ) Korea Telecom China Co., Ltd. 661 22 681 10 KT Dutch B.V. 31,693 41 191 105 Super iMax LLC 4,150 4,528 4,845 (424 ) East Telecom LLC 1 16,590 14,263 15,087 2,639 Korea Telecom America, Inc. 4,218 832 7,554 350 PT. KT Indonesia 8 — — — KT Rwanda Networks Ltd. 2 144,129 162,801 15,150 (29,238 ) KT Belgium 90,172 1 29 (43 ) KT ORS Belgium 6,709 5 — (46 ) KBTO sp.zo.o. 1,364 217 202 (3,771 ) AOS Ltd. 2 14,018 4,952 6,300 (680 ) KT Hongkong Telecommunications Co., Ltd. 3,616 2,143 9,990 351 1 These companies are the intermediate controlling companies of other subsidiaries and the above financial information is from their consolidated financial statements. 2 At the end of the reporting period, convertible preferred stock issued by subsidiaries is included in liabilities. (In millions of Korean won) 2019 Total Total Operating Profit (loss) for the year KT Powertel Co., Ltd. ₩ 118,052 ₩ 19,766 ₩ 62,846 ₩ 3,085 KT Linkus Co., Ltd. 70,494 62,088 97,892 (2,258 ) KT Submarine Co., Ltd. 120,947 18,452 55,244 486 KT Telecop Co., Ltd. 279,878 153,841 332,063 (4,875 ) KT Hitel Co., Ltd. 279,818 74,769 323,065 1,426 KT Service Bukbu Co., Ltd. 64,802 58,984 219,427 (445 ) KT Service Nambu Co., Ltd. 63,917 55,548 266,148 280 BC Card Co., Ltd. 1 3,912,982 2,594,232 3,553,008 115,885 H&C Network 1 282,016 68,401 320,701 (1,593 ) Nasmedia Co., Ltd. 1 356,236 203,105 117,550 22,484 KTDS Co., Ltd. 1 158,153 105,462 428,758 9,027 KT M Hows Co., Ltd. 74,326 50,638 33,443 6,771 KT M&S Co., Ltd. 248,142 215,777 813,498 12,732 GENIE Music Corporation (KT Music Corporation) 234,131 80,952 230,480 7,658 KT MOS Bukbu Co., Ltd. 33,376 28,841 63,761 353 KT MOS Nambu Co., Ltd. 34,258 26,722 67,300 3,099 KT Skylife Co., Ltd. 1 848,276 142,839 704,996 56,008 KT Estate Inc. 1 1,686,000 295,706 485,686 48,552 KTGDH Co., Ltd. (KTSB Data service) 10,437 1,628 3,977 344 KT Sat Co., Ltd. 651,195 127,523 168,376 16,497 KT Sports Co., Ltd. 15,603 8,333 55,241 (464 ) KT Music Contents Fund No.1 10,579 1,677 521 345 KT Music Contents Fund No.2 7,675 279 331 48 KT-Michigan 11,688 61 248 (1,113 ) Autopion Co., Ltd. 7,460 4,894 5,604 (302 ) KT M mobile Co., Ltd. 135,917 30,603 161,720 (5,580 ) KT Investment Co., Ltd. 1 73,463 56,212 13,375 847 KTCS Corporation 1 378,171 213,983 944,778 7,597 KTIS Corporation 305,798 137,524 454,561 9,205 Next connect PFV 385,412 24,275 1,590 (5,898 ) Korea Telecom Japan Co., Ltd. 1 1,851 2,858 2,891 651 Korea Telecom China Co., Ltd. 879 39 844 192 KT Dutch B.V. 31,003 50 — (242 ) Super iMax LLC 3,568 5,304 4,604 (631 ) East Telecom LLC 1 20,857 16,302 17,186 2,140 Korea Telecom America, Inc. 4,611 537 6,808 572 PT. KT Indonesia 8 — — — KT Rwanda Networks Ltd. 2 132,461 183,164 18,013 (31,662 ) KT Belgium 93,321 11 — (64 ) KT ORS Belgium 6,913 14 — (43 ) KBTO sp.zo.o. 1,767 245 519 (3,457 ) AOS Ltd. 2 12,337 3,993 6,982 (591 ) KT Hongkong Telecommunications Co., Ltd. 5,126 2,923 13,321 586 KT Huimangjieum 2,129 1,019 1,027 (390 ) GE Premier 1st Corporate Restructuring Real Estate Investment Trust Co. 6,285 1,139 176 70 K-REALTY 300 — — — 1 These companies are the intermediate controlling companies of other subsidiaries and the above financial information is from their consolidated financial statements. 2 At the end of the reporting period, convertible preferred stock issued by subsidiaries is included in liabilities. ( I 2020 Total Total Operating Profit (loss) for the year KT Powertel Co., Ltd. ₩ 119,694 ₩ 18,833 ₩ 65,897 ₩ 3,809 KT Linkus Co., Ltd. 58,372 54,022 84,519 (3,212 ) KT Submarine Co., Ltd. 116,813 14,032 110,201 1,197 KT Telecop Co., Ltd. 318,456 193,737 392,489 212 KT Hitel Co., Ltd. 288,949 92,599 350,231 2,080 KT Service Bukbu Co., Ltd. 60,825 56,554 217,451 (871 ) KT Service Nambu Co., Ltd. 58,182 51,460 264,776 (456 ) BC Card Co., Ltd. 1 3,084,398 1,778,751 3,387,640 39,455 H&C Network 1 269,651 61,365 322,690 2,413 Nasmedia Co., Ltd. 1 422,039 221,371 113,136 23,134 KTDS Co., Ltd. 1 183,297 133,129 499,990 10,635 KT M Hows Co., Ltd. 104,704 76,315 44,860 6,935 KT M&S Co., Ltd. 231,260 197,306 661,533 (485 ) GENIE Music Corporation (KT Music Corporation) 250,538 88,488 247,237 9,472 KT MOS Bukbu Co., Ltd. 32,167 26,070 67,975 1,473 KT MOS Nambu Co., Ltd. 33,765 24,947 71,259 1,639 KT Skylife Co., Ltd. 1 919,476 175,039 706,631 58,190 KT Estate Inc. 1 1,689,601 325,429 365,335 14,370 KTGDH Co., Ltd. (KTSB Data Service) 11,003 1,669 4,282 538 KT Sat Co., Ltd. 630,740 92,791 173,693 14,753 KT Sports Co., Ltd. 26,572 14,940 46,608 (2,516 ) KT Music Contents Fund No.1 4,844 1,525 243 84 KT Music Contents Fund No.2 15,021 285 169 (116 ) KT-Michigan 10,382 175 111 (1,420 ) Autopion Co., Ltd. 4,903 4,961 6,174 (2,459 ) KT M Mobile Co., Ltd. 129,011 27,281 163,472 (3,617 ) KT Investment Co., Ltd. 1 115,627 93,695 47,801 4,680 KTCS Corporation 1 384,919 215,175 933,006 11,323 KTIS Corporation 294,289 126,894 454,172 7,387 Next Connect PFV 394,268 37,271 26 (7,101 ) Korea Telecom Japan Co., Ltd. 1 2,694 2,622 1,853 1 Korea Telecom China Co., Ltd. 381 21 618 (492 ) KT Dutch B.V. 1 29,585 10,109 26,782 6,061 Korea Telecom America, Inc. 4,498 125 6,808 712 KT Rwanda Networks Ltd. 2 114,768 191,781 17,870 (34,610 ) KT Belgium 87,608 — (81 ) (81 ) KBTO sp.z o.o. 438 117 490 (2,823 ) AOS Ltd. 2 11,812 3,875 5,719 296 KT Hong Kong Telecommunications Co., Ltd. 6,159 2,800 16,386 1,308 KT Huimangjieum 3,720 2,787 5,239 (13 ) GE Premier 1st Corporate Restructuring Real Estate Investment Trust Co. 5,703 1,165 333 83 Storywiz Co., Ltd 21,594 10,065 19,209 (1,954 ) KT Engineering Co., Ltd. (KT ENGCORE Co., Ltd.) 138,220 102,963 346,040 (8,461 ) 1 These companies are the intermediate controlling companies of other subsidiaries and the above financial information is from their consolidated financial statements. 2 At the end of the reporting period, convertible preferred stock issued by subsidiaries is included in liabilities. |