General Information | 1. General Information The consolidated financial statements as of December 31, 2022 include the accounts of KT Corporation, which is the controlling company as defined under IFRS 10, Consolidated Financial Statements, and its 85 controlled subsidiaries as described in Note 1.2 (collectively referred to as the “Group”). 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 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 shares 1.2 Consolidated Subsidiaries The consolidated subsidiaries as at December 31, 2021 and 2022, are as follows: Controlling percentage 1 Subsidiary Type of business Location December 31, December 31, Closing month 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 % 32.9 % December KT Telecop Co., Ltd. Security service Korea 86.8 % 86.8 % December KT Alpha Co., Ltd. (KT Hitel Co., Ltd.) 4 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.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 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 Controlling percentage 1 Subsidiary Type of business Location December 31, December 31, Closing month VP Inc. 4 Payment security service for credit card, others Korea 50.9 % 69.7 % 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. 4 Internet banking ASP and security solutions Korea 58.2 % 61.3 % 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 % 95.6 % December KT M&S Co., Ltd. PCS distribution Korea 100.0 % 100.0 % December GENIE Music Corporation 3,4 Online music production and distribution Korea 36.2 % 36.0 % 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 4 Satellite TV Korea 50.3 % 50.2 % 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 (KT AMC Co., Ltd.) 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. 3,4 Solution provider and IPTV advertisement sales business Korea 44.0 % 44.0 % 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 KT-Michigan Global Content Fund Content investment business Korea 88.6 % 88.6 % December KTCS Corporation 2,4 Database and online information provider Korea 32.2 % 34.1 % December KTIS Corporation 2,4 Database and online information provider Korea 31.4 % 33.3 % 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. 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 Controlling percentage 1 Subsidiary Type of business Location December 31, December 31, Closing month 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 100.0 % 90.9 % December KHS Corporation Operation and maintenance of facilities Korea 100.0 % 100.0 % December Lolab Co., Ltd. Truck transportation and trucking arrangement business Korea 80.0 % 79.8 % December HCN Co., Ltd. Cable television service Korea 100.0 % 100.0 % December Millie Seojae 3 Book contents service Korea 38.6 % 38.6 % December KT ES Pte. Ltd. Foreign investment business Singapore 57.6 % 57.6 % December Epsilon Global Communications PTE. Ltd. Network service industry Singapore 100.0 % 100.0 % December Epsilon Telecommunications (SP) PTE. Ltd. Fixed line telecommunication business Singapore 100.0 % 100.0 % December Epsilon Telecommunications (US) PTE. Ltd. Fixed line telecommunication business Singapore 100.0 % 100.0 % December Epsilon Telecommunications Limited Fixed line telecommunication business UK 100.0 % 100.0 % December Epsilon Telecommunications (HK) Limited Fixed line telecommunication business Hong Kong 100.0 % 100.0 % December Epsilon US Inc. Fixed line telecommunication business USA 100.0 % 100.0 % December Epsilon Telecommunications (BG) EOOD Employee support service Bulgaria 100.0 % 100.0 % December Epsilon M E A General Trading LLC 3 Local counter work United Arab Emirates 49.0 % 49.0 % 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 Altimedia Corporation Software development and delivery Korea 100.0 % 100.0 % December Alticast B.V. Software development and delivery Netherlands 100.0 % 100.0 % December Alticast Company Limited 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 % December Hangang Real Estate Investment Trust No. 24 Investment fund Korea — 75.0 % December Controlling percentage 1 Subsidiary Type of business Location December 31, December 31, Closing month KT DX Vietnam Company Limited Software development Vietnam — 100.0 % December kt cloud Co., Ltd. Information telecommunication business Korea — 100.0 % December Pocheon Jeonggyori Development Co., Ltd. Residential building development Korea — 80.9 % December Alpha DX Solution Co., Ltd. Data communication service Korea — 100.0 % December PT CRANIUM ROYAL ADITAMA Software development Indonesia — 67.0 % December KT Primorye IDC LLC Data processing and associated service delivery Russia — 99.0 % December Juice Inc. 3 Online information provider/Software development and delivery Korea — 41.2 % December SPARK AND ASSOCIATES INC. Network service industry 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. 1.3 Changes in Scope of Consolidation Subsidiaries newly Changes Location Name of Subsidiary Reason Included Russia KT RUS LLC Newly established Included Korea Hangang Real Estate Investment Trust No. 24 Newly established Included Vietnam KT DX Vietnam Company Limited Newly established Included Korea kt cloud Co., Ltd. Newly established Included Korea Pocheon Jeonggyori Development Co., Ltd. Newly established Included Korea Alpha DX Solution Co., Ltd. Split-off Included Indonesia PT CRANIUM ROYAL ADITAMA Transferred Included Russia KT Primorye IDC LLC Newly established Included Korea SPARK AND ASSOCIATES INC. Transferred Included Korea Juice Inc. Transferred Excluded Korea MEDIA GENIE Co., Ltd. Merged Excluded Korea kt seezn Co., Ltd. Merged Excluded UK 7D Digital Limited Liquidated Excluded Korea Whowho&Company Co., Ltd. Merged Summarized information for consolidated subsidiaries as at and for the years ended December 31, 2020, 2021 and 2022 is as follows: ( in December 31, 2020 Total assets 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 Alpha Co., Ltd. (KT Hitel Co., Ltd.) 288,949 92,599 350,231 2,080 KT Service Bukbu Inc. 60,825 56,554 217,451 (871 ) KT Service Nambu Inc. 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 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 Inc. 630,740 92,791 173,693 14,753 KT Sports Inc. 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 Global Contents Fund 10,382 175 111 (1,420 ) Autopion Co., Ltd. 4,903 4,961 6,174 (2,459 ) KT M Mobile Inc. 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 Inc. 394,268 37,271 26 (7,101 ) KT 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 KT 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 Hopemate 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. (In millions of Korean won) December 31, 2021 Total assets Total Operating 3 Profit (loss) for the year 3 KT Linkus Co., Ltd ₩ 54,219 ₩ 53,316 ₩ 81,434 ₩ (3,095 ) KT Submarine Co., Ltd. 110,390 10,736 31,374 (3,183 ) KT Telecop Co., Ltd. 363,224 233,797 515,456 3,985 KT Alpha Co., Ltd. (KT Hitel Co., Ltd.) 390,671 172,767 471,870 (8,692 ) KT Service Bukbu Inc. 59,341 54,070 231,602 1,128 KT Service Nambu Inc. 62,513 52,695 271,174 1,430 BC Card Co., Ltd. 1 3,933,427 2,481,004 3,580,970 120,308 H&C Network Co., Ltd. 1 88,616 4,993 227,604 11,995 Nasmedia Co., Ltd. 1 490,394 268,618 125,876 27,120 KTDS Co., Ltd. 1 341,358 199,831 632,899 21,464 KT M&S Co., Ltd. 241,377 203,051 710,634 3,496 KT MOS Bukbu Co., Ltd. 32,511 25,402 70,212 1,637 KT MOS Nambu Co., Ltd. 36,741 26,053 71,940 2,016 KT Skylife Co., Ltd. 1 1,275,645 469,694 772,950 62,309 KT Estate Inc. 1 2,370,940 791,884 577,578 213,203 KTGDH Co., Ltd. 11,464 1,560 4,423 553 KT Sat Inc. 593,616 34,169 174,750 20,830 KT Sports Inc. 29,524 19,740 67,612 (2,039 ) KT Music Contents Fund No.2 14,985 278 253 (30 ) KT-Michigan Global Contents Fund 3,552 112 13,592 10,032 KT M Mobile Inc. 144,175 40,749 204,641 5,918 KT Investment Co., Ltd. 1 87,366 66,108 21,040 (697 ) KTCS Corporation 1 416,750 234,172 968,499 19,034 KTIS Corporation 369,361 177,619 487,801 24,944 Next Connect PFV Inc. 518,441 167,963 — (6,519 ) KT Japan Co., Ltd. 1 1,474 2,633 1,298 (142 ) KT America, Inc. 4,884 101 6,508 201 KT Rwanda Networks Ltd. 2 125,860 236,389 23,328 (28,770 ) AOS Ltd. 2 11,539 2,812 6,942 823 KT Hong Kong Telecommunications Co., Ltd. 6,613 1,346 18,825 1,313 KT Hopemate 1 6,311 2,978 12,538 116 KT Engineering Co., Ltd. (KT ENGCORE Co., Ltd.) 185,850 144,832 284,998 366 KT Studio Genie Co., Ltd. 1, 648,534 276,933 90,047 (16,443 ) Lolab Co., Ltd. 26,726 897 2,107 (134 ) East Telecom LLC 1 35,904 22,088 11,960 2,487 KT ES Pte. Ltd. 1 240,331 80,597 15,157 (6,355 ) KT Philippines 3,641 1,243 — — Altimedia Corporation 1 32,338 9,742 6,968 1,037 ( i December 31, 2022 Total assets Total Operating 3 Profit (loss) for the year 3 KT Linkus Co., Ltd. ₩ 47,734 ₩ 47,498 ₩ 76,135 ₩ (614 ) KT Submarine Co., Ltd. 120,255 7,884 42,848 (12,126 ) KT Telecop Co., Ltd. 370,004 230,965 517,406 4,267 KT Alpha Co., Ltd 1 (KT Hitel Co., Ltd.) 406,236 172,211 516,737 13,115 KT Service Bukbu Co., Ltd. 74,673 65,820 252,304 3,227 KT Service Nambu Co., Ltd. 80,450 66,479 301,720 3,067 BC Card Co., Ltd. 1 5,666,075 4,109,200 3,897,090 148,341 H&C Network 82,737 6,640 27,392 992 Nasmedia Co., Ltd. 1 516,945 275,730 153,211 27,691 KTDS Co., Ltd. 1 401,932 228,474 723,161 30,941 KT M&S Co., Ltd. 255,310 204,336 730,802 8,105 KT MOS Bukbu Co., Ltd. 38,684 22,553 83,085 4,607 KT MOS Nambu Co., Ltd. 42,011 25,416 83,330 5,035 KT Skylife Co., Ltd. 1 1,359,166 503,679 1,038,468 20,941 KT Estate Inc. 1 2,480,333 833,842 478,188 58,780 KT GDH Co., Ltd. 12,059 1,596 4,323 451 KT Sat Co., Ltd. 677,980 89,644 185,313 28,073 KT Sports Co., Ltd. 28,220 15,461 65,350 (7,302 ) KT Music Contents Fund No.2 15,718 277 1,040 735 KT-Michigan Global Content Fund 2,371 27 33 (1,095 ) KT M Mobile Co., Ltd. 152,114 49,816 262,918 4,731 KT Investment Co., Ltd. 1 103,354 79,182 15,136 2,840 KTCS Corporation 1 419,726 228,618 1,031,010 17,634 KTIS Corporation 396,208 199,204 536,229 15,917 Next Connect PFV 624,734 277,967 3 (3,712 ) KT Japan Co., Ltd. 1 1,888 3,141 3,263 226 KT America, Inc. 5,945 843 8,070 37 KT Rwanda Networks Ltd. 2 126,721 267,369 30,834 (27,467 ) AOS Ltd. 2 10,972 905 8,049 1,274 KT Hong Kong Telecommunications Co., Ltd. 10,505 4,768 20,413 51 KT Huimangjieum 1 6,984 2,582 22,860 494 KT Engineering Co., Ltd. (KT ENGCORE Co., Ltd.) 141,463 89,853 258,435 10,302 KT Studio Genie Co., Ltd. 1 987,270 268,911 723,580 189,498 Lolab Co., Ltd. 35,091 17,247 74,881 (7,985 ) East Telecom LLC 1 42,691 21,645 27,030 6,419 KT ES Pte. Ltd. 1 240,721 88,640 78,815 (23,957 ) KTP SERVICES INC. 3,832 2,044 776 (255 ) Altimedia Corporation 1 44,861 15,777 47,203 6,035 KT RUS LLC 1 967 16 5 (871 ) KT DX Vietnam Company Limited 1,815 6 — 26 kt cloud Co., Ltd. 1 1,348,684 245,872 432,118 14,712 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. 3 Profit or loss is included from the date of acquisition of control to the end of the reporting period. |