General Information | 1. General Information The consolidated financial statements have been prepared by KT Corporation, the “Controlling company” as defined under IFRS 10 Consolidated Financial Statements 1.1 The Controlling Company KT Corporation (the “Controlling Company”) commenced operations on January 1, 1982, when it spun off from the Korea Communications Commission (formerly the Korean Ministry of Information and Communications) to provide telecommunication services and to engage in the development of advanced communications services under the Act of Telecommunications of Korea. The headquarters are located in Seongnam City, Gyeonggi Province, Republic of Korea, and the address of its registered head office is 90, Buljeong-ro, Bundang-gu, Seongnam City, Gyeonggi Province. On October 1, 1997, upon the announcement of the Government-Investment Enterprises Management Basic Act and the Privatization Law, the Controlling Company became a government-funded institution under the Commercial Code of Korea. On December 23, 1998, the Controlling Company’s shares were listed on the Korea Exchange. On May 29, 1999, the Controlling Company issued 24,282,195 additional shares and issued American Depository Shares (ADS), which represents new shares and 20,813,311 government-owned shares, on the New York Stock Exchange. On July 2, 2001, additional ADS representing 55,502,161 government-owned shares were issued on the New York Stock Exchange. In 2002, the Controlling Company acquired the entire government-owned shares in accordance with the Korean government’s privatization plan. As of December 31, 2023, the Korean government does not own any shares in the Controlling Company. 1.2 Consolidated Subsidiaries (1) The consolidated subsidiaries as of December 31, 2022 and 2023, are as follows Controlling percentage 1 Subsidiary Type of business Location December 31, December 31, Closing 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 Controlling percentage 1 Subsidiary Type of business Location December 31, December 31, Closing VP Inc. 5 Payment security service for credit card, others Korea 69.7% 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 61.3% 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 95.6% 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 50.2% 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 44.0% 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 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 Controlling percentage 1 Subsidiary Type of business Location December 31, December 31, Closing East Telecom LLC Wireless/fixed line internet business Uzbekistan 91.6% 91.6% December KT America, Inc. Foreign investment business and local counter work USA 100.0% 100.0% December PT. BC Card Asia Pacific Software development and supply Indonesia 99.9% 99.9% December KT Hongkong Telecommunications Co., Ltd. Fixed line telecommunication business Hong Kong 100.0% 100.0% December Korea Telecom Singapore Pte. Ltd. Foreign investment business and local counter work Singapore 100.0% 100.0% December Texnoprosistem LLC Fixed line internet business Uzbekistan 100.0% 100.0% December Nasmedia Thailand Co., Ltd. Internet advertising solution Thailand 99.9% 99.9% December KT Huimangjieum Manufacturing Korea 100.0% 100.0% December K-REALTY RENTAL HOUSING REIT 3 Residential building Korea 88.6% 88.6% December Storywiz Co., Ltd. Contents and software development and supply Korea 100.0% 100.0% December KT Engineering Co., Ltd. Telecommunication facility construction and maintenance Korea 100.0% 100.0% December KT Studio Genie Co., Ltd. Data communication service and data communication construction business Korea 90.9% 90.9% December KHS Corporation Operation and maintenance of facilities Korea 100.0% 100.0% December Lolab Co., Ltd. Truck transportation and trucking arrangement business Korea 79.8% 79.8% December HCN Co., Ltd. Cable television service Korea 100.0% 100.0% December Millie Seojae 2 Book contents service Korea 38.6% 30.2% December KT ES Pte. Ltd. Foreign investment business Singapore 57.6% 57.6% December Epsilon Global Communications PTE. Ltd. Network service industry Singapore 100.0% 100.0% December Epsilon Telecommunications (SP) PTE. Ltd. Fixed line telecommunication business Singapore 100.0% 100.0% December Epsilon Telecommunications (US) PTE. Ltd. Fixed line telecommunication business Singapore 100.0% 100.0% December Epsilon Telecommunications Limited Fixed line telecommunication business UK 100.0% 100.0% December Epsilon Telecommunications (HK) Limited Fixed line telecommunication business Hong Kong 100.0% 100.0% December Epsilon US Inc. Fixed line telecommunication business USA 100.0% 100.0% December Epsilon Telecommunications (BG) EOOD Employee support service Bulgaria 100.0% 100.0% December Nasmedia-KT Alpha Future Growth Strategic Investment Fund Investment fund Korea 100.0% 100.0% December KT Strategic Investment Fund 6 Investment fund Korea 100.0% 100.0% December Altimedia Corporation Software development and delivery Korea 100.0% 100.0% December Altimidia B.V. (formerly Alticast B.V.) Software development and delivery Netherlands 100.0% 100.0% December Controlling percentage 1 Subsidiary Type of business Location December 31, December 31, Closing Altimidia Vietnam (formerly 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% 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 100.0% 92.7% December Pocheon Jeonggyori Development Co., Ltd. Residential building development Korea 80.9% 80.9% December PT CRANIUM ROYAL ADITAMA Software development Indonesia 67.0% 67.0% December Juice Inc. 3,5 Online information provider/Software development and delivery Korea 41.2% 42.6% December open cloud lab Co., Ltd (formerly SPARK AND ASSOCIATES INC.) IT consulting service and Telecommunication equipment sales Korea 100.0% 100.0% December KD Living, Inc. Residential building management Korea — 100.0% December KT HEALTHCARE VINA COMPANY LIMITED Medical service Vietnam — 100.0% December K-Realty Qualified Private Real Estate Investment Trust No. 1 4 Real estate management Korea — 6.5% December AQUA RETAIL VIETNAM COMPANY LIMITED E-voucher issuance and trading business Vietnam — 100.0% December K-Realty Qualified Private Real Estate Investment Trust No. 4 Real estate management Korea — 93.9% December 1 Sum of the interests owned by the Controlling Company and subsidiaries. 2 Although the Controlling Company owns less than 50% interest in Nasmedia, Co., Ltd., KTCS Corporation and KTIS Corporation, Millie Seojae, and GENIE Music Corporation these entities are consolidated as the Controlling Company can exercise the majority of the voting rights in its decision-making process at all times considering voting patterns at previous shareholders’ meetings. 3 Although the Controlling Company owns less than 50 4 Although the Controlling Company owns less than 50% interest in K-Realty Qualified Private Real Estate Investment Trust No. 1, these entities are consolidated by comprehensively considering the criteria for determining control, such as ‘power’, ‘variable profit’, and ‘relationship between power and variable profit’, rather than simply judging by the interests owned by the company. 5 The number of treasury stocks held by subsidiaries are deducted from the total number of shares when calculating the controlling percentage interest. (2) Changes in Scope of Consolidation Subsidiaries newly included and excluded in the consolidation during the year ended December 31, 2023: Changes Location Name of subsidiary Reason Included Korea KD Living, Inc. Transferred 1 Included Vietnam KT HEALTHCARE VINA COMPANY LIMITED Newly established Included Korea K-Realty Qualified Private Real Estate Investment Trust No. 1 Transferred 2 Included Vietnam AQUA RETAIL VIETNAM COMPANY LIMITED Newly established Included Korea K-Realty Qualified Private Real Estate Investment Trust No. 4 Newly established Excluded United Arab Emirates Epsilon M E A General Trading LLC Liquidated Excluded Korea Alpha DX Solution Co., Ltd. Merged Excluded Korea KT Strategic Investment Fund No.2 Liquidated Excluded Korea LS Marine Solution Co., Ltd. (formerly KT Submarine Co., Ltd.) Excluded 3 Excluded Korea KT-Michigan Global Contents Fund Liquidated Excluded Russia KT Primorye IDC LLC Liquidated 1 The entity has been reclassified from a joint venture to a consolidated entity. 2 Although the Controlling Company owns less than 50% interest in K-Realty Qualified Private Real Estate Investment Trust No. 1, these entities are consolidated by comprehensively considering the criteria for determining control, such as ‘power’, ‘variable profit’, and ‘relationship between power and variable profit’, rather than simply judging by the interests owned by the company. 3 Due to the loss of control by the parent company, the entity has been reclassified from a subsidiary to an associate company. (3) Summarized information for consolidated subsidiaries as at and for the years ended December 31, 2021, 2022 and 2023 is as follows (In millions of Korean won) December 31, 2021 3 Total assets Total liabilities 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 1 These companies are the intermediate controlling companies of other subsidiaries and the above financial information is from their consolidated financial statements. 2 Convertible preferred stock issued by subsidiaries as of the end of the reporting period is included in liabilities. 3 Profit or loss is included from the date of acquisition of control to the end of the reporting period. (in millions of Korean won) December 31, 2022 3 Total assets Total liabilities 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. 1 516,945 275,730 153,210 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 Convertible preferred stock issued by subsidiaries as of the end of the reporting period is included in liabilities. 3 Profit or loss is included from the date of acquisition of control to the end of the reporting period. (in millions of Korean won) December 31, 2023 3 Total assets Total liabilities Operating Profit (loss) for the year KT Linkus Co., Ltd. ₩ 64,178 ₩ 63,452 ₩ 81,645 ₩ 821 KT Telecop Co., Ltd. 375,596 235,947 527,015 5,728 KT Alpha Co., Ltd. 443,639 191,254 437,308 19,352 KT Service Bukbu Co., Ltd. 63,760 55,360 242,119 1,212 KT Service Nambu Co., Ltd. 71,576 58,745 291,170 1,354 BC Card Co., Ltd. 1 6,352,878 4,722,432 4,027,450 76,545 H&C Network 81,107 4,863 27,205 1,814 Nasmedia Co., Ltd. 1 513,311 262,336 147,934 17,703 KTDS Co., Ltd. 1 393,667 202,067 727,477 33,971 KT M&S Co., Ltd. 258,477 209,075 695,856 3,783 KT MOS Bukbu Co., Ltd. 50,750 28,431 101,428 8,457 KT MOS Nambu Co., Ltd. 46,839 26,012 101,422 5,749 KT Skylife Co., Ltd. 1 1,220,842 479,369 1,034,342 (109,407 ) KT Estate Inc. 1 2,746,546 1,121,970 511,018 871 KT GDH Co., Ltd. 7,760 1,501 4,346 648 KT Sat Co., Ltd. 699,607 88,524 182,274 30,502 KT Sports Co., Ltd. 26,615 11,299 66,309 (12,386 ) KT Music Contents Fund No.2 5,558 1,772 534 (992 ) KT M Mobile Co., Ltd. 176,838 69,317 301,049 5,605 KT Investment Co., Ltd. 1 83,638 57,420 24,976 2,180 KTCS Corporation 1 434,900 234,850 1,035,911 15,804 KTIS Corporation 447,609 243,519 593,162 13,922 Next Connect PFV 946,687 629,809 — (29,889 ) KT Japan Co., Ltd. 1 2,015 3,341 2,793 (110 ) KT America, Inc. 6,013 701 8,928 133 KT Rwanda Networks Ltd. 2 134,847 313,787 26,788 (57,628 ) AOS Ltd. 2 10,763 1,983 8,287 128 KT Hong Kong Telecommunications Co., Ltd. 11,142 5,121 19,373 143 KT Huimangjieum 1 8,073 2,715 17,687 1,012 KT Engineering Co., Ltd. 160,243 104,005 262,063 5,327 KT Studio Genie Co., Ltd. 1 989,187 259,413 542,955 13,507 Lolab Co., Ltd. 42,744 37,838 173,035 (12,938 ) East Telecom LLC 1 48,483 22,632 30,350 7,723 KT ES Pte. Ltd. 1 117,009 90,392 87,865 (124,850 ) KTP SERVICES INC. 2,967 919 671 235 Altimedia Corporation 1 48,381 12,374 45,035 7,352 KT RUS LLC 501 10 1 (378 ) KT DX Vietnam Company Limited 1,694 102 82 (207 ) KT Cloud Co., Ltd. 1 1,983,972 503,241 679,825 63,956 KT Healthcare Vina Co., Ltd. 12,730 439 — (721 ) K-Realty Qualified Private Real Estate Investment Trust No. 1 80,266 50,693 4,682 (1,037 ) AQUA RETAIL VIETNAM COMPANY LIMITED 1,202 62 16 (248 ) 1 These companies are the intermediate controlling companies of other subsidiaries and the above financial information is from their consolidated financial statements. 2 Convertible preferred stock issued by subsidiaries as of the end of the reporting period is included in liabilities. 3 Profit or loss is included from the date of acquisition of control to the end of the reporting period. |