KT : ANNUAL FINANCIAL REPORT OF KT CORPORATION - Form 6-K

ANNUAL FINANCIAL REPORT

OF

KT CORPORATION

(From January 1, 2021 to December 31, 2021)

(Translation of the Annual Report filed in Korean with the Financial Supervisory Service of Korea)

Table of Contents

Table of Contents

I. Corporate General			2
		1.		Corporate Purpose of KT Corporation			2
	2.		History			4
	3.		Total Number of Shares and Related Matters			5
II. Business Details			6
	1.		(Manufacturing Service) Business Overview			6
	2.		(Manufacturing Service) Main Products and Services			8
	3.		(Manufacturing Service) Sales			18
	4		(Manufacturing Service) Other References			26
	5		(Finance) Business Overview			26
	6		(Finance) Business Status			27
	7.		(Finance) Derivatives Transaction			27
	8.		(Finance) Business Facilities			28
	9.		(Finance) Financial Stability			28
	10.		Research and Development Activities			31
	11.		Other Matters Necessary for Making Investment Decisions			33
III. Financial Information			34
	1.		Summary of Financial Statements (Consolidated)			34
	2.		Summary of Financial Statements (Separate)			35
IV. Auditors' Opinion			36
	1.		Auditor's Opinion on the Consolidated Financial Statements			36
	2.		Audit services contract			36
	3.		Non-Audit services contract			37
	4.		The results of the Internal Audit Organization's discussion with the auditor			37
	5.		Dividends and Related Matters			38
V. Management and Affiliated Companies			39
	1.		Overview of the Board of Directors and Committees			39
	2.		Audit Committee			58
	3.		Matters on Shareholder's exercise of Voting Rights			66
	4.		Equity Investments			67
VI. Directors, Senior Management and Employees			69
	1.		Directors			69
	2.		Senior Management			69
	3.		Current Status of Employees			71
	4.		Remunerations of Executive Officers			72

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I. Corporate Generals

1.	Corporate Purpose of KT Corporation

Business Objectives

1.

Information and communications business;

2.

New media business and internet multimedia broadcasting business

3.

Development and sale of software and contents;

4.

Sale and distribution of information communication equipment;

5.

Testing and inspection of information communication equipment, device or facilities;

6.

Advertisement business;

7.

Retail business via telephone, mail order or online;

8.

IT facility construction business, electrical construction business and fire protection facility business

9.

Real estate and housing business

9(1).

Business facilities management and business support service industry

10.

Electronic banking and finance business;

11.

Education and learning service business;

12.

Security service business (Machinery system surveillance service, Facilities security service, etc);

13.

Research and technical development, education, training and promotion, overseas businesses, and export and import, manufacture and distribution related to activities mentioned in Subparagraphs 1 through 12

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14.

Frequency-based telecommunications services and other telecommunications services

15.

Value-added telecommunications business

16.

Manufacture, provision (screening) and distribution of contents such as musical records, music videos, movies, videos and games

17.

Issuance and management of pre-paid electronic payment instruments, and businesses related to electronic finance such as payment gateway services

18.

Sales and leasing of equipment and facilities related to the activities mentioned in Subparagraphs 14 through 17

19.

Any overseas business or export and import business related to activities mentioned in Subparagraphs 14 through 18

20.

Tourism

21.

(Deleted)

22.

New and renewable energy, energy generation business, electrical system design business and electrical safety management agent business

23.

Health Informatics business

24.

Manufacture of communication equipment, device or facilities for military purpose

25.

Energy diagnostics business, professional business relating to energy conservation, and any and all other business in the field of energy use rationalization

26.

Information securities, any and all other business in the field of identification service

27.

Activities of management consultancy

28.

Warehousing and storage

29.

Total construction business

30.

Specialized design services

31.

Freight Transportation Business, Cargo Transportation Intermediation Business

32.

Manufacturing and sales of medical device

33.

Any and all other activities or businesses incidental to or necessary for attainment of the foregoing

34.

Personal information management business and ancillary work

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2.

History

A.	Changes since Incorporation

(1)	Date of Incorporation: December 10, 1981

(2)	Location of Headquarters:

90 Bulljeong-ro

Bundang-gu, Seongnam-city

Gyeonggi-do 13606

Korea

(3)	Major Changes in KT Corporation

•

On March 27, 2009, KT Corporation ("KT") signed a merger agreement with its mobile subsidiary KTF, in which KT held a 54.25% interest, and on June 1, 2009, the merger was completed.

•

At the annual general shareholders' meeting held on March 11, 2011, KT's shareholders approved the addition of the health bioinformatics business to KT's business objectives, which is a new emerging industry that integrates IT with genetic data information sequencing, computation, accumulation, and application. The shareholders also approved the addition of military communication equipment, devices and facility manufacturing to its business objectives.

•

Mr. Suk Chae Lee was reelected as the Chief Executive Officer ("CEO") and President of KT at the annual general shareholders' meeting held on March 16, 2012.

•

At the annual general shareholders' meeting held on March 15, 2013, KT's shareholders approved the addition of energy inspection, energy conservation, and the energy use rationalization business to KT's business objectives.

•

Mr. Chang-Gyu Hwang was elected as the CEO and President of KT at the extraordinary general shareholders' meeting held on January 27, 2014.

•

At the annual general shareholders' meeting held on March 25, 2016, KT's shareholders approved the addition of Information securities, any and all other business in the field of identification service.

•

Mr. Chang-Gyu Hwang was re-elected as the CEO and President of KT at the annual general shareholders' meeting held on March 24, 2017. KT's shareholders approved the addition of fire protection facility business, electrical system design business, activities of management consultancy, and warehousing & storage

•

At the annual general shareholders' meeting held on March 23, 2018, KT's shareholders approved the addition of electrical safety management agent business. They also approved the Total construction business for Clarification of Business Purpose and Specialized design services for Business Area Expansion.

•

Mr. Hyeon-Mo Ku was elected as the Representative Director of KT at the annual general shareholders' meeting held on March 30, 2020.

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•

At the annual general shareholders' meeting held on March 31, 2021, KT's shareholders approved the addition of "My data" business on the Article of Incorporation. They also approved change in notification and diversification of shareholders return method.

3.	Total Number of Shares and Related Matters

A.	Status of Capital Increase/Decrease (As of December 31, 2021) (Unit: KRW million, Shares)

Type of Stock

Category

40th (The end of 2021)

39th (The end of 2020)

38th (The end of 2019)

Common Stock

Current Number of Issued Shares

261,111,808

261,111,808

261,111,808

Par value

0.005

0.005

0.005

Capital Stock

1,564,499

1,564,499

1,564,499

Preferred Stock

Current Number of Issued Shares

Par value

Capital Stock

Others

Current Number of Issued Shares

Par value

Capital Stock

Total

Capital Stock

1,564,499

1,564,499

1,564,499

Date of Shares Issued (Retired)

Type of Shares Issued (Retired)

Details of Issued (Retired) Shares

Type

Number of Issued (Retired) Shares

Par Value per Share

Par Value of Issued per Share

Note

-

-

-

-

-

-

-

B.	Total Number of Shares (As of December 31, 2021) (Unit: Shares)

Category				Type of Shares			Total
		Common shares			Preferred shares
I. Total Number of Authorized Shares			1,000,000,000				-				1,000,000,000
II. Total Number of Issued Shares			312,899,767				-				312,899,767
III. Total Number of Reduced Shares			51,787,959				-				51,787,959
Details of Reduced Shares		1. Reduction of Capital			-				-				-
	2. Share Retirement			51,787,959				-				51,787,959
	3. Redemption of Redeemable Shares			-				-				-
	4. Other			-				-				-
IV. Current Number of Issued Shares (II - III)			261,111,808				-				261,111,808
V. Number of Treasury Shares				25,303,662				-				25,303,662
VI. Current Number of Issued and Outstanding Shares				235,808,146				-				235,808,146

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C. Acquisition and Disposal of Treasury Shares (As of December 31, 2021) (Unit: Shares)

Method of Acquisition			Type of Shares		Beginning of Term			Acquisition (+)			Disposition (-)			Retirement (-)			End of Term
Direct Acquisition			Over-the- Counter			Common shares			14,719,678				-				1,566,902				-				13,152,776
		Preferred shares			-				-				-				-				-
		Exchange- Traded			Common shares			-				-				-				-				-
		Preferred shares			-				-				-				-				-
Indirect Acquisition (e.g. Trust Contract)			Common shares			4,550,000				7,600,886				-				-				12,150,886
	Preferred shares			-				-				-				-				-
Total			Common shares			19,269,678				7,600,886				1,566,902				-				25,303,662
	Preferred shares			-				-				-				-				-

•

The above "Beginning of Term" means as of January 1, 2021 and "End of Term" means as of December 31, 2021, which is the most recent date of shareholder registry.

•

Details of Disposition of treasury shares from January 1, 2021 to December 31, 2021 are as follows.

- On July 14, 2021, KT disposed 134,570 shares of treasury shares for stock grant to compensation to outside directors and executive directors for FY 2020.

- On December 14, 2021, KT disposed 1,432,332 shares of treasury shares for stock grant to provide stock grant compensation to employees

II. Business Details

Overview

1.	(Manufacturing Service) Business Overview

A.

ICT : KT

KT operates wireless communications services for individual and corporate customers such as wireless communications, high-speed Internet, and corporate lines, pay TV services such as IPTV, and platform-based B2B businesses such as IDC, Cloud, and AI/DX. KT declared its change into a digital platform company (DIGICO) in 2020 and is accelerating innovation from various businesses such as media, finance, and B2B to customer-centered platforms. Based on the solid performance growth of Telco business in 2021, we are striving for the growth of B2B+DIGICO business.

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B.	Satellite TV : Skylife

KT Skylife is leading the domestic HD broadcasting service market by commercializing H.264 based multi-channel HD for the first time in Korea. It is launching Korea's largest UHD multi-channel service and reflecting customer trends that aim for rational consumption with '30% discount home combination' products. In October 2020, it launched 'SkyLife Mobile', an affordable phone service, and started selling three types of combined products (TPS) including affordable phones, satellite broadcasting, and the Internet.

C.	Other Businesses (Estate, Commerce, Ad, etc.)

Genie Music provides high-quality music streaming services and differentiated music services using artificial intelligence (AI) curation technology based on customer music listening history through the music service platform 'genie'. KT SAT's satellite service business is a business that receives orbit and frequency from the government and uses them to secure satellites and generate profits by providing services. We provide satellite services using a total of four self-owned satellites and satellite relay services from overseas operators. KT ESTATE provides the best value in each field, such as project financing, construction management, marketing, leasing and management, as well as planning and design of real estate products. KT Alpha (formerly KT HiTel) is expanding its e-commerce business from TV to mobile, and is creating e-commerce capabilities and synergy through a merger with KT mhows which has mobile coupon business capabilities. Nasmedia is mainly engaged in Internet and mobile, IPTV, and digital outdoor advertising media sales centered on display advertising, and launched K-Deal, a text-based CPS advertising product, in 2021. KT Studio Genie was established on January 28, 2021 to lead the group's media/content business (content production/planning/investment/distribution, etc.).

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2.	(Manufacturing Service) Main Products and Services

A.

ICT : KT

The price fluctuations of representative rates of mobile, IPTV, broad band, fixed-line phones, and combined products provided by KT are as follows. For more information, please refer to the product service contents on our website(https://product.kt.com). The prices below are the amounts that do not reflect the Additional discount.

•

Mobile

2020 (Unit : Korean won, VAT included)

Plan		Monthly Rate
5G Super Plan Choice		Premium Choice			130,000
	Special Choice			110,000
	Basic Choice			90,000
5G Simple			69,000
5G Slim			55,000
5G Save			45,000

We launched the KT 5G Super Plan Choice on September 25, 2020, and added Netflix contents on them on October 28, 2020. We added the partnership benefit for the Hyundai Card holders on June 2, 2021 and Disney+ contents on October 5, 2021. And we also launched the 5G Simple and the 5G Save on October 5, 2020.

2019 (Unit : Korean won, VAT included)

Plan		Monthly Rate
5G Super Plan		Premium			130,000
	Special			100,000
	Basic			80,000
5G Slim			55,000

We launched the KT 5G Super Plan on April 5, 2019.

•

IPTV IPT

2021 (Unit : Korean won, VAT included)

Plan		Monthly Rate			Rate with 1 year term			Rate with 2 year term			Rate with 3 year term			Rate when IPTV and Broadband are combined
Essence Plus			28,160				26,730				25,300				22,484				18,700
VOD Plus			29,150				27,775				26,510				23,980				20,900
TV Prime Super			36,300				34,540				32,890				29,480				25,300
TV Netflix
UHD			39,600				37,325				35,840				31,680				27,500
TV Prime
Home-school			108,900				103,950				99,000				89,100				82,500

2020 (Unit : Korean won, VAT included)

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Plan		Monthly Rate			Rate with 1 year term			Rate with 2 year term			Rate with 3 year term			Rate when IPTV and Broadband are combined
TV Basic			18,150				17,270				16,390				14,740				12,100

We launched the TV Basic in April 2020.

2019 - No change

2018 (Unit : Korean won, VAT included)

Plan		Monthly Rate			Rate with 1 year term			Rate with 2 year term			Rate with 3 year term			Rate when IPTV and Broadband are combined
TV Essence			25,300				24,035				22,770				20,240				16,500
TV Entertainment			31,020				29,469				27,918				24,816				20,900
TV Prime Kids Land			31,020				29,469				27,918				24,816				20,900

•

Broadband

The below rate is an amount that does not reflect additional expenses such as modem rental fee.

2021 (Unit : Korean won, VAT included)

Plan		Monthly Rate			Rate with 1 year term			Rate with 2 year term			Rate with 3 year term			Rate with 3 year term when IPTV, mobile and Broadband are combined
GiGA Wi Max 2.5G(ax)			78,100				69,300				60,500				45,650				40,150
GiGA Wi Max 1G(ax)			72,600				63,800				55,000				40,150				34,650
GiGA Wi Max 500M(ax)			63,800				56,100				48,400				35,750				30,250
GiGA Wi Max 100M(ax)			57,200				48,950				40,700				24,750				24,750
Multinet Essence			60,500				53,900				48,400				44,000				38,500
Multinet Basic			51,700				46,200				41,800				38,500				33,000
Multinet Slim			45,100				39,600				34,100				27,500				27,500

The rates are the amount applied to the GiGA Wi Max 2.5G/1G/500M/100M plans with 3 year term when IPTV, mobile and Broadband are combined. The Multinet Essence/Basic/Slim rates are the amount applied to the 3 years term when multinet(TV) is combined

2020 (Unit : Korean won, VAT included)

Plan		Monthly Rate			Rate with 1 year term			Rate with 2 year term			Rate with 3 year term			Rate with 3 year term when IPTV, mobile and Broadband are combined
GiGA Wi Max 2.5G(ac)			78,100				69,300				60,500				45,100				39,600
GiGA Wi Max 1G(ac)			72,600				63,800				55,000				39,600				34,100
GiGA Wi Max 500M(ac)			63,800				56,100				48,400				35,200				29,700
GiGA Wi Max 100M(ac)			57,200				48,950				40,700				24,200				24,200

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The rates are the amount applied to the GiGA Wi Max 2.5G/1G/500M/100M plans with 3 year term when IPTV, mobile and Broadband are combined.

2019 (Unit : Korean won, VAT included)

Plan		Monthly Rate			Rate with 1 year term			Rate with 2 year term			Rate with 3 year term			Rate with 3 year term when IPTV, mobile and Broadband are combined
10 GiGA Max 10G			110,000				99,000				93,500				88,000				77,000
the Internet that reassures the family (10 GiGA Max 2.5G)			63,800				57,750				51,700				45,100				39,600
the Internet that reassures the family (GiGA Max 1G)			58,300				52,250				46,200				39,600				34,100
the Internet that reassures the family (GiGA Max 500M)			49,500				44,550				39,600				34,100				28,600
the Internet that reassures the family (Max 100M)			42,900				37,400				31,900				23,100				23,100
the Internet plus that reassures the family (10 GiGA Max 2.5G)			72,600				64,900				57,200				45,100				39,600
the Internet plus that reassures the family (GiGA Max 1G)			67,100				59,400				51,700				39,600				34,100
the Internet plus that reassures the family (GiGA Max 500M)			58,300				51,700				45,100				35,200				29,700
the Internet plus that reassures the family (Max 100M)			51,700				44,550				37,400				24,200				24,200

The rate with 4 year term is 77,000 won.

The plan names of the internet service changed since September 25, 2021

Classification		AS-IS		TO-BE
Internet only		10 GiGA MAX 10G		Internet Super Premium
	10 GiGA MAX 5G		Internet Premium Plus
	10 GiGA MAX 2.5G		Internet Premium
	GiGA MAX 1G		Internet Essence
	GiGA MAX 500M		Internet Basic
	GiGA MAX 200M		Internet Slim Plus
	GiGA MAX 100M		Internet Slim
WiFi Package		10G MAX 2.5G Plus		Internet Premium WiFi
	GiGA MAX 1G Plus		Internet Essence WiFi
	GiGA MAX 500M Plus		Internet Basic WiFi
	GiGA MAX 100M Plus		Internet Slim WiFi

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GiGA Wi internet		GiGA Wi		Internet Wide
the Internet that reassures the family		the Internet plus that reassures the family (10 GiGA Max 2.5G)		Internet Premium WiFi that reassures the family
	the Internet plus that reassures the family (10 GiGA Max 1G)		Internet Essence WiFi that reassures the family
	the Internet plus that reassures the family (10 GiGA Max 500M)		Internet Basic WiFi that reassures the family
	the Internet plus that reassures the family (10 GiGA Max 100M)		Internet Slim WiFi that reassures the family
	the Internet that reassures the family (10 GiGA Max 2.5G)		Internet Premium that reassures the family
	the Internet that reassures the family (10 GiGA Max 1G)		Internet Essence that reassures the family
	the Internet that reassures the family (10 GiGA Max 500M)		Internet Basic that reassures the family
	the Internet that reassures the family (10 GiGA Max 100M)		Internet Slim that reassures the family

•

Fixed-line Telephone Services

2019, 2020 and 2021 - No change

•

Bundled Rate Plans

2021		2020		2019
<2021.04> ● Mobile bundle promotion 'between friends' - Equivalent discount benefit as the 'Mobile bundle pack for my family' for foreigners of same nationality <2021.05> ● Renewal of the CEO Success Pack - Added mobile bundle service - Integrated VAN billing and relaxation of the discount condition <2021.08> ● Promotion of the Premium Single bundling package - 25% discount of the mobile tariff for the service usage of over 500Mbps internet and 5G mobile plan over 80k Korean won (65,890 Korean won for LTE subscriber) <2021.10> ● Pre-marriage Bundle Promotion - Lump sum discount of mobile service for soon to be married or newly married couple for maximum 6 months		<2020.04> ● Renewal of the Internet Telephony Home bundle plan - Change of the discount amount from 2,200 won to 1,100 won of the Internet Telephony Home bundle plan if bundled with Home Telephony with 3 year term <2020.06> ● Renewal of the Home Telephony TPS bundle plan within home bundle - Change of the discount amount from 4,620 won to 1,320 won for grade 8 or higher of the Home Telephony bundle plan if bundled with TPS with 3 year term including IPTV <2020.07> ● CEO Success Pack launch		<2019.04> ● Change of the bundled discount rate about fixed rate discount of 5G plan - Discount rate 10/15/20/25/30% to bundled mobile 1/2/3/4/5 line <2019.08> ● 5G Premium Family bundle discount plan promotion (08.09~12.31) - Term : sign up at least two 5G mobile line starting from W80k - benefit : 25% discount to over 80k for 5G mobile line and 66k for LTE mobile line. (Total amount discount plan is applied to below 80k for 5G mobile line or 66k for LTE mobile line.)

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B.

Satellite TV - KT Skylife

•

TV (Unit : Korean won, VAT Included)

Service Type			2021			2020			2011
Satellite only		Android		sky UHD Family A+			Receiving				12,100				12,100				-
		Bundle				8,800				8,800				-
	sky UHD Blue A+			Receiving				14,300				14,300				14,300
		Bundle				11,000				11,000				11,000
	sky UHD Green A+			Receiving				12,100				12,100				12,100
		Bundle				8,800				8,800				8,800
	UHD		sky Family+ HD + sky UHD pack			Receiving				12,100				12,100				-
		Bundle				8,800				8,800				-
	HD		Sky On+ HD			Receiving				8,800				8,800				8,800
		Bundle				7,700				8,250				8,250
OTS		-		UHD OTS Prime Kids Land /Entertainment (19)			Receiving				20,900				20,900				20,900
	UHD OTS Essence (15)			Receiving				16,500				16,500				16,500
	UHD OTS Light (12)			Receiving				13,200				13,200				13,200
	UHD OTS Slim (10)			Receiving				11,000				11,000				11,000
	OTS Prime Kids Land /Entertainment (19)			Receiving				20,900				20,900				20,900
	OTS Essence (15)			Receiving				16,500				16,500				16,500
	OTS Light (12)			Receiving				13,200				13,200				13,200
	OTS Slim (10)			Receiving				11,000				11,000				11,000
	OTS Basic (11)			Receiving				12,100				12,100				-

Receiving : The rate with 3 year term

Bundle : The rate if bundled between TV and Broadband

•

Broadband (Unit : Korean won, VAT Included)

Service Type			2021			2020			2019
Internet		Sky 100M			Service				28,050				28,050				28,050
		Bundle				19,800				19,800				19,800
	Sky GiGA 200M			Service				30,250				30,250				30,250
		Bundle				22,000				22,000				22,000
	Sky GiGA 500M			Service				33,000				33,000				33,000
		Bundle				27,500				27,500				27,500
	Sky GiGA 1G			Service				38,500				38,500				38,500
		Bundle				33,000				33,000				33,000

Service : The rate with 3 year term and the rate does not reflect additional fees such as rental, installation, etc.

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Bundle : The rate if bundled between TV and Broadband

The bundle rate of Sky 100M and Sky GiGA 200M are the amount applied to the AP rental discount promotion, 2,000 won.

•

Mobile (Unit : Korean won, VAT Included)

Service Type			2021
Mobile		Ultra Slim 500M/60min			Service				1,900
	Slim			Service				4,400
	Economy			Service				5,500
	Basic			Service				9,900
	Special			Service				19,800
	Phone Call Enough 300MB			Service				8,800
	Phone Call Enough 5GB			Service				20,900
	Data Enough 2.2GB+/100min			Service				11,700
	Data Enough 5GB+/100min			Service				14,300
	Data Enough 15GB+/300min			Service				27,500
	Data Enough 15GB+/100min			Service				25,300
	All Enough 0GB+			Service				11,000
	All Enough 1GB+			Service				12,650
	All Enough 2.5GB+			Service				15,400
	All Enough 7.0GB+			Service				16,900
	All Enough 11GB+			Service				33,000
	All Enough 11GB+ (Membership point)			Service				35,200
	All Enough 11GB+ (Gifti-show)			Service				35,200
	All Enough 11GB+ (Genie music)			Service				35,200
	All Enough 100GB+ (Seezn OTT)			Service				39,600
	All Enough 100GB+ (Game Box)			Service				39,700
	5G All Enough 5GB			Service				15,300
	5G All Enough 7GB			Service				18,700
	5G All Enough 10GB			Service				38,500
	Gold 500MB+			Service				4,900
	Gold 2GB+			Service				7,400
	Gold 4GB+			Service				10,400
	Enough Smart Data 10GB+			Service				10,800
	Enough Smart Data 20GB+			Service				14,100
	Interpark 10GB/100min			Service				20,800
	Interpark 15GB/100min			Service				27,300
	Interpark 11GB			Service				35,000

C.

Others

•

Others - Genie Music (Unit : Korean won, VAT excluded)

Service Service Type		Products		2021			2020			2019
Music source service		Unlimited Streaming		Data Safe Music Streaming			10,900				10,900				-
	Music Streaming (PC+Mobile)			8,400				8,400				8,400
	Smart Music Streaming (Mobile only)			7,400				7,400				7,400
	Smart streaming + Download (30 songs)			-				10,800				10,800
	MP3 Download + Unlimited Streaming		Smart streaming + Download (50 songs)			-				15,000				15,000
	Download 5 songs			3,000				3,000				3,000
	Download 10 songs			5,500				5,500				5,500
	MP3 Download		Download 30 songs			-				8,800				8,800
	Download 50 songs			-				12,500				12,500
Integrated Service		1,000 times			16,000				16,000				16,000
	300 times			4,800				4,800				4,800
	Counted number of music listening		100 times			1,600				1,600				1,600
	20 times			800				800				800
	Unlimited Music + e-book		Smart music streaming+e-book (Genie+ Millie's library)			13,000				-				-

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•

Others-KT CS (Unit : Korean won, VAT excluded)

Item		2021		2020		2018
114 directory assistance		170 won (190 won at Night/Holidays)		120 won (140 won at night/holidays)
Priority number assistance		30,000 / month (Dong standard)

"Dong" is Korea's address classification system.

The rate of 114 directory assistance is changed to 170 won at daytime and 190 won at Night/Holidays, respectively, since February 1, 2021.

•

Others-KT IS (Unit : Korean won, VAT excluded)

Item		2021			2020			2019
114 directory assistance		170 won (190 won at Night/Holidays)				120 won (140 won at Night/Holidays)
		Monthly fixed rate		Group 1			Group 2			Group 3			Group 4
	"City"Unit			55,000				53,000				50,000				45,000
	"Gu"Unit			44,000				42,000				40,000				36,000
Priority number assistance		"Dong"Unit			33,000				31,000				30,000				27,000

"Gu" and "Dong" is Korea's address classification system.

Groups are classified by service district and the type of business.

The rate of 114 directory assistance is changed to 170 won and 190 won of Day time and Night/Holidays, respectively, since February 1, 2021.

•

Others-KT M mobile (Unit : Korean won, VAT included)

Mobile (Postpaid)

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Products		2021			2020			2019
Mobile (Postpaid)		<2021.02> 500 MB/100min <2021.11> 5G 2GB/unlimited voice call 5G 4GB/unlimited voice call6 5G 2GB/unlimited voice call <2021.12> 5G 10GB/unlimited voice call 5G 110GB/unlimited voice call6 5G 220GB/unlimited voice call			18,000 25,500 29,000 33,000 50,000 69,000 74,000			<2020.11> 3G 30MB/180min 3G 30MB (Voice-call) LTE Data 500M/60min LTE Data 500M/100min LTE Data 500M/200min LTE Data 500M/300min LTE Data 1G/60min LTE Data 1G/100min LTE Data 1G/200min LTE Data 1G/300min LTE Data 3G/100min LTE Data 3G/200min LTE Data 3G/300min			26,400 34,100 19,800 20,900 23,100 25,300 22,000 23,100 25,300 27,500 29,700 31,900 34,100			<2019.3> LTE Data 0MB/30min LTE 0MB (Voice-call) Economy Kids basic Economy Kids smart Economy junior study 1.5GB Economy junior study 3GB Economy junior smart 6GB Economy junior smart 10GB <2019.4> Sky practical 1.2GB Sky practical 4GB Sky practical 6GB Sky practical 10GB+ <2019.8> LTE economy 3GB LTE economy 5GB <2019.10> LTE reassurance 1.5G LTE reassurance 2.5G			8,800 27,500 12,100 18,700 27,500 29,700 34,100 38,500
		24,800 36,300 39,600 60,000 31,900 40,700 26,400 31,900

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Products		2021			2019			2018
Usim only		<2021.01>			<2020.4>			<2019.4>
(Postpaid)		Google play(15GB+100min)			47,300			LTE Basic			38,500			Data 15GB+/100min			47,300
	Google play (11GB+call free)			49,280			LTE Economy 1GB			33,000			Economy universal rate			19,900
	Google play (100GB+100min)			66,000
	Unlimited 100GB +Game Box			66,000			<2020.5>			<2019.7>
			Data free 250M+			28,200			Voice call free 1.5GB			35,300
	<2021.02>			Data free New 1GB+			33,000			Voice call free 2.5GB			43,500
	Senior Relief 2GB+			28,000			Data free 10GB+			33,800			Voice call free 4.5GB			47,500
	Senior Relief 4GB+			35,000
	Data Relief 3.5GB +110min			26,400			<2020.6>			<2019.8>
	Data Relief 5GB +110min			31,900			All free 1.4GB+			38,300			Data sharing			-
			Data free 6GB+/100min			28,600
	<2021.03>			All free 100GB+(Seezn)			66,000			<2019.10>
	M plan 5GB/day+Seezn			66,000					Data free 100M+			16,500
			<2020.7>			Data free reassurance			23,650
	<2021.04>			Data free 15GB+			47,300			1GB+/100min			29,150
	Data Relief 15GB+300min			55,000			Economy Voice 3GB			17,200			Data free 3GB+			41,250
	Senior Relief 0.5GB+			22,000			Economy Voice 5GB			21,300			Data free ON			31,350
	Super saving 500MB/60min			9,900					Voice call free 300MB
	Super saving 500MB/100min			11,000			<2020.9>
	Super saving 1GB/60min			13,200			Voice free 6.5GB			35,000			<2019.11>
	Super saving 1GB/100min			15,400			All free 6GB+			42,900			All free 3GB+			46,000
	Super saving 1.5GB/100min			16,500					All free 100GB+			66,000
	Super saving 1.5GB/150min			17,600			<2020.10>
	Super saving 2GB/200min			19,800			All 1.5GB/100min			18,590			<2019.12>
	Sharing data 120min			5,500			All 2GB/200min			19,800			5G Slim M			55,000
	Sharing data 240min			7,700			Data 2.4GB/100min			17,600			5G Slim Special			77,000
			Data 2.4GB/200min			22,000
	<2021.06>			Data 3.5GB/100min			23,100
	Unlimited data 10GB+180min			32,500			Data 3.5GB/200min			27,500
			Data 5GB/100min			28,600
	<2021.07>			Data 5GB/200min			30,800
	Unlimited data relief 1GB/300min			24,000			All reassurance+			20,900
	Unlimited data relief 1GB/300min			27,500			All reassurance 1.5GB+			26,000
	Unlimited data relief 5GB/300min			32,500			All reassurance 2.5GB+			27,500
			All reassurance 4.5GB+			30,800

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Products		2021			2019			2018
Usim only		All unlimited 7GB			35,200
(Postpaid)		All unlimited 11GB +Genie music			51,000
	All unlimited 11GB +Gifti 5,000p			51,000
	All unlimited 11GB +pay coupon 5,000p			51,000
	5G unlimited call 5G			33,000
	5G unlimited call 7G			39,000
	5G simple M			69,000
	Teenager unlimited data 1GB/300min			32,000
	Teenager unlimited data 1GB			35,000
	<2021.08>
	All and many 2.5GB/250min			33,000
	All and many 2.5GB/250min			33,000
	Unlimited data 15GB/100min(Genie music)			56,100
	Unlimited data 15GB/100min(Giftishow 5,000p)			56,100
	Unlimited data 15GB/100min(Pay coupon 5,000p)			56,100
	Unlimited data 15GB/300min(Genie music)			60,500
	Unlimited data 15GB/300min(Giftishow 5,000p)			60,500
	Unlimited data 15GB/300min(Pay coupon 5,000p)			60,500
	Data sharing 120min			5,500
	Data sharing 240min			7,700
	<2021.10>
	All unlimited 11GB+Blice			51,000

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Mobile (Prepaid)

Mobile		<2021>		<2020>		<2019.5>
(Prepaid)		No change in 2021		No change in 2020		LTE Free			-
		+		PPS Data 1GB+			19,800
			PPS Data 10GB			28,800
			PPS Data 15GB+			39,000
			<2019.8>
			PPS Data 300MB+			36,300

The prepaid rate plan is based on 30 days

KT Studio Genie

A. Performance in Terms of Revenue (Unit: millions of Korean won, %)

Category		2021
	Amount			%
Content Production			10,578				89
Distribution Agency			293				2
Other			952				8
Total			11,824				100

3. (Manufacturing Service) Sales

A.

ICT-KT

(1) Performance in Terms of Revenue (Unit: millions of Korean won, %)

Category		2021			2020			2019
	Amount			%			Amount			%			Amount			%
Service revenue			15,501,216				84.3				15,086,246				84.4				14,937,785				82.1
Merchandise sales			2,886,218				15.7				2,793,035				15.6				3,266,966				18.0
Total			18,387,434				100.0				17,879,281				100.0				18,204,751				100.0

(2) Sales Organization and Channels

Sales organization

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Sales Channels

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(3) Methods and Conditions of Sales

KT provides our products and services to customer through the sales organization and channel as above, basically, customers pay the service charges with cash, bank direct debit bill and credit card. In addition to monthly service fee, customers must pay the equipment rental fee and installment fee as well.

For the corporate customers, we negotiate contractual terms, such as supply conditions and services fees.

(4) Sales Strategy

(a) Mobile Service

•

Device leadership : Differentiate wireless experience with pre-emptive adoption of differentiated 5G/LTE smartphones and new forms of emerging devices.

•

Network quality differentiation : 5G first C-DRX Application and 5G network quality based on edge communication center, tight national network LTE-A Network.

•

Innovative rate plans : 5G super plan to offer unlimited data and worldwide data roaming, and LTE data ON providing unlimited data across all plans

•

Segment marketing : Introducing products exclusively for young customers such as Y super pan, Y24 and providing premium single bundled rate plan optimized for single-person households

•

Loyalty program : A variety of mobile phone replacement programs and installment plans, including industry-leading membership benefits, long-term customer special benefits, and rental services to reduce inconvenience in device replacement.

•

Differentiated service : The CS system optimized for smartphones, the benefits of reducing telecommunication charge through affiliated cards, and differentiated mobile phone insurance products.

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(b) Broadband Internet Service

•

Solidifying a No.1 market stance with active GiGA investment and wire-wireless bundling competitiveness

•

Market leading with 10G internet

•

Suggest the new internet paradigm by introducing 'GiGA Wi internet' which comes with new concept of WiFi service, GiGA WiFi Buddy in the era of Post-Covid19

•

Strengthen the B2B market with Office IP Net security packages and POSNET products that are specialized for corporate customers.

•

Increase sales synergies linked to GiGA infrastructure business such as 5G and IPTV

•

Broaden internet business coverage such as low cost market with skylife internet resale

•

Satisfying a diverse range of customer needs by providing differentiated value-added services such as GiGA WiFi home ax, GiGA WiFi Premium 2.4, Family Internet Security Package, etc.

•

Provide a variety of customer convenience by providing customized products through analysis of customer usage patterns.

Acquire lots of new lines by utilizing B2C/B2C order business such as installment business for expanding for mobile infrastructure.

(c) Telephone Service

•

Preemptive care activities to minimize customer churn :

•

Uncombined customers using the Internet and TV products : Service bundling propulsion

•

Customer who need home telephony service : Promoting KT telephony 3000 price plan

•

Customer who did re-contract VoIP service : Promoting KT VoIP 3000 price plan

•

SOHO, small business customer : Pushing to sign up for converged products including Telephone manager, Ringo

•

Preventing from decreasing revenue by restructuring price plans :

•

Rolling out new VoIP price plan which is charging per second

•

Efforts to secure new customers by providing differentiated services :

•

VoIP device D2 release(July, 2017) : Provide user convenience, including support for Google Address Book

(d) IPTV Service

•

Introducing products that reflect customer preferences

•

Based on AI, organizing personalized content and strengthening the recommendation

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•

Differentiation of technologies such as subminiature and wireless set-top box(UHD4), voice-based user interface.

B. Satellite Business (KT skylife)

(1) Performance in Terms of Revenue (Unit: millions of Korean won, %)

Category		2021			2020			2019
	Amount			%			Amount			%			Amount			%
Service revenue			364,983				55.7				349,277				52.9				334,016				50.7
Platform revenue			219,218				33.5				216,968				32.9				236,353				35.9
Others			71,153				14.3				94,159				14.3				87,928				13.4
Total			655,354				100.0				660,404				100.0				658,297				100.0

The above numbers are written on a separate basis.

2020 and 2019 was written in accordance with K-IFRS 1116, but 2018 was written in accordance with the previous Standard, K-IFRS 1017.

Platform revenue: Advertisement revenue + Home shopping transmission fee + T-commerce transmission fee

Service revenue: Broadcasting revenue + Internet revenue + Mobile revenue

(2) Sales Organization and Channels

KT Skylife currently has various sales channels such as skylife head office, customer center, 213 sales offices which are further organized under 9 branches (three in Seoul, two in Busan and one each in Daejeon, Daegu, Gwangju and etc.) and 2 local office (one each in Jeonju, Daejeon), KT.

Sales offices perform sales and services through consignment contracts with KT Skylife, and 2 customer centers(Suwon, Gwangju) perform business activities such as customer counseling, as well as defending customer churn and attracting new subscribers.

The combined products are sold through KT's in-house/outdoor sales channels and group companies, which are nationwide, and we are continuously sold on the headquarters' website.

In addition, we have been continuously partnering with various on and off-line companies such as companies, government offices, and online markets to secure sales channels.

As of the end of December 2021, sales by route are as follows (Accumulated from January to December 2021)

Category		New Subscribers			%
Sales office			216,473				69.2
KT			8,175				2.6
Headquarter, customer center			87,952				28.1
Total			312,600				100.0

C. Others Business

KT Sat

(1) Performance in Terms of Revenue (Unit: millions of Korean won, %)

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Category		2021			2020			2019
	Amount			%			Amount			%			Amount			%
Gap filler rentals			102,372				58.6				96,853				55.8				90,244				53.7
Data transmission			24,565				14.1				20,778				12.0				12,205				7.3
Video transmission			8,161				4.7				9,467				5.5				10,326				6.2
Mobile satellite service			22,051				12.6				20,059				11.6				16,536				9.8
Others			17,506				10.0				26,391				15.2				38,698				23.0
Total			174,655				100.0				173,548				100.0				168,009				100.0

2020 and 2019 were written in accordance with K-IFRS 1116, but 2018 was written in accordance with the previous Standard, K-IFRS 1017.

(2) Sales Organization and Channels

KT SAT's sales organization manages and operates customers by region. Due to the nature of the service, the company has a large number of corporate customers and is attracting new customers through sales of internal sales representatives and external distribution networks (partners).

KT Estate

(1) Performance in Terms of Revenue (Unit: millions of Korean won, %)

Category		2021			2020			2019
	Amount			%			Amount			%			Amount			%
PM fee			99,424				29.6				7,753				2.2				23,663				4.9
Rental business			160,212				47.8				156,784				33.4				160,283				33.4
Real estate commission business			75,737				22.6				134,057				39.2				188,004				39.2
Development business			-				-				61,360				22.5				107,923				22.5
Total			335,373				100.0				359,954				100.0				479,873				100.0

KT alpha (Former KT Hitel)

(1) Performance in Terms of Revenue (Unit: millions of Korean won, %)

Category		2021			2020			2019
	Amount			%			Amount			%			Amount			%
T-Commerce(K Shopping)			307,181				65.2				228,424				65.4				182,947				56.8
Mobile Gift Commerce			32,056				6.8
Content Distribution			43,769				9.3				37,486				10.7				60,803				18.9
ICT Platform			88,471				18.8				83,404				23.9				78,571				24.4
Total			471,477				100.0				349,314				100.0				322,321				100.0

The revenue of Mobile Gift Commerce was separated from T- Commerce and disclosed in 2021.

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(2) Sales Organization and Channels

(a) Commerce

After the MD has signed a contract with the vendor to supply the product, the product information is provided directly to the general customer through platforms such as VOD, TV, Internet, and mobile. After receiving the customer's order through TV remote control, internet, and mobile, if payment is made, we will ship the product through the delivery company.

(b) Mobile Gift Commerce

KT alpha divides its customers to B2B and B2C depending on the purchasing entities and provides its service. For the B2B customers, the company carries out the sales activities directly to enterprise customers who want to purchase in bulk. Also, the company provides the mobile gift certificate purchase online service ("Giftishow biz") optimized for business purchase process indirectly such as promotion planning and managing the budget, etc. For B2C customers, the company service through its own web/app and also a variety of affiliate channel such as mobile commerce channel and online open market, etc.

(c) Content

The content supply and demand representative make copyright agreements with the content creator or distributor. And we provide content VOD or library services to 150 platform companies such as IPTV, OTT, and Internet web hard.

(d) ICT

Most of ICT business is related to installment business (ex. IT Project). For this reason, this report does not disclose its own sales organization and channels.

Genie Music

(1) Performance in Terms of Revenue (Unit: millions of Korean won, %)

		2021			2020			2019
Category		Amount			%			Amount			%			Amount			%
Music business			235,257				96.4				236,652				95.8				222,165				96.4
Others			8,696				3.6				10,316				4.2				8,304				3.6
Total			243,954				100.0				246,968				100.0				230,469				100.0

Music Business: Regular Music services and distribution of content

Others: Irregular music service development service and Artist-related MD sales

(2) Sales Organization and Channels

Genie Music serves as a service provider and content distributor within the digital music industry.

(a) Service provider

Genie Music provides streaming and downloading services through our own misic platform Genie. B2B music service is to provide music listening services to wireless customers of KT and LGU+, shareholders. We also provide store music services(Shop & Genie) to offline stores.

(b) Content distributor

Genie Music supplies content distributed by us to other providers' music platforms.

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(c) Music Business (Music Services and Content Distributor)

Genie Music provides music services directly to the domestic customers through its own music platform Genie such as website, mobile app and etc. Also, the company is providing music services through the value-added services which telecom companies roll out.

Genie Music has signed a contract with other music services companies to distribute content which is secured by the network with record label and music companies.

(d) Others (IT development service, MD and etc.)

Genie Music generates IT development revenue through the contract by IT projects with private companies. Also, In terms of MD revenue, the company is selling the MD products (which are bought or imported from MD vendor) to the online and offline stores.

KT Telecop

(1) Performance in Terms of Revenue (Unit: millions of Korean won, %)

Category		2021			2020			2019
	Amount			%			Amount			%			Amount			%
Security service			502,075				98.3				380,575				97.5				319,062				96.3
Distribution			8,318				1.6				9,098				2.3				11,482				3.5
Others			608				0.1				660				0.2				673				0.2
Total			511,001				100.0				390,333				100.0				331,217				100.0

(2) Sales Organization and Channels

KT Telecop operates the business department, regional headquarters strategic sales team, branch offices. And we provide dispatch security service and integrated security service.

Nasmedia

(1) Performance in Terms of Revenue (Unit: millions of Korean won, %)

Category				2021			2020			2019
	Amount			%			Amount			%			Amount			%
Advertising		Online DA (PC, Mobile)			51,282				59.6				43,892				53.5				41,470				52.9
	Mobile platform			26,330				29.7				20,895				25.4				24,274				31.0
	Digital broadcasting (IPTV)			6,601				7.4				7,318				8.9				1,921				2.5
	Digital outdoor			2,881				3.2				9,895				12.1				10,669				13.6
Commerce			1,561				1.8				-				-				3				0.0
Financial Lease			71				0.1				58				0.1				36				0.0
Total			88,726				100.0				82,058				100.0				78,373				100.0

The above numbers are written on a separate basis.

(2) Sales Organization and Channels

The online advertising industry can be divided into three areas: advertising companies, media reps, and media. Media reps generate revenue by selling media.

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Nasmedia and its major subsidiaries generally deal with advertisers, advertising agencies, and media companies.

KT Studio Genie

(1) Performance in Terms of Revenue (Unit: millions of Korean won, %)

Category		2021
	Amount			%
Content Production			10,578				89.5
Distribution Agency			293				2.5
Other			952				8.0
Total			11,824				100.0

(2) Sales Organization and Channels

KT Studio Genie's main business are producing and selling media content (drama). For this reason, this report does not disclose the sales organization and channels information.

4. (Manufacturing Service) Other References

Matters related to the discharge of environmental substances or environmental protection

KT was designated as a company subject to the Greenhouse Gas Emissions Trading System, which has been in effect since 2015 under the ' Framework Act on Low Carbon Green Growth' and 'Act on Allocation and Transaction of Greenhouse Gas Emissions'.

In 2018, KT was allocated a greenhouse gas emission allowance from the government, and we continue to reduce Greenhouse Gas emissions.

KT's greenhouse gas emissions are mainly due to the heating and cooling energy of office buildings nationwide and the use of electricity in telecommunication facilities, such as base stations, and repeaters. By 2050, we have set a goal to meet carbon neutrality.

5. (Finance) Business Overview

Under Specialized Credit Finance Business Act of Korea, business areas of BC Card are 1) soliciting and managing credit card member merchants, 2) credit card transaction processing, which is settling balances of the credit card payment, and 3) issuing and managing credit cards for credit finance companies. Also, it is a credit finance company providing funding service, insurance, retail business via telephone, mail order or online, and tourism service.

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6. (Finance) Business Status

A. Performance in Terms of Revenue (Unit: KRW million, %)

Category		2021			2020			2019
	Amount			%			Amount			%			Amount			%
Card processing revenue			3,154,561				88.1				2,961,791				87.4				3,077,807				87.1
Service fee revenue			176,610				4.9				199,934				5.9				217,014				6.1
Additional business fee revenue			68,972				1.9				77,032				2.3				84,217				2.4
Member Service Fee revenue			57,182				1.6				49,860				1.5				51,562				1.5
Card revenue			9,051				0.3				4,591				0.1				4,506				0.1
Financial revenue			29,935				0.9				24,186				0.7				22,831				0.6
Foreign currency-related profit			4,062				0.1				4,679				0.1				23,813				0.6
Other operating revenue			79,065				2.2				67,986				2.0				55,428				1.6
Total			3,579,438				100.0				3,390,059				100.0				3,537,178				100.0

The above numbers are written on a K-IFRS consolidated basis.

B. Sales Organization and Channels

BC Card is engaged in the issuance and purchase of credit cards (including check cards) based on the basic contracts with card companies. In addition, we are expanding credit card business by acquiring new customers other than existing member companies.

C. Major Management Contracts

(1) Contracting Party: K Bank

1) Contract contents: Capital increase of K Bank

2) Date: 2021. 7. 9

3) Number of shares acquired: ordinary shares of 65,377,980

4) Acquisition amount: KRW 424,957 million

(2) Contracting Party: INITECH Co., Ltd.

1) Contract contents: Acquisition of shares of SMARTRO

2) Date: 2021. 12. 29

3) Number of shares acquired: 626,736 shares

4) Acquisition amount: KRW 96,842 million

7. (Finance) Derivatives Transaction

For this term, Company gave drag-along rights to financial investors participating in capital raise of K Bank. In case K Bank fails in IPO at an agreed conditions, financial investors can exercise drag-along rights and Company can accept those or exercise a right of claim for sale. In case financial investors exercise drag-along rights, Company should exercise a right of claim for sale or guarantee agreed profit margin.

A. Derivatives at 4Q21 and 3Q21

(Unit: KRW million)

Item

4Q21

3Q21

Asset

Liability

Asset

Liability

Drag-along Right

-

158,284

-

-

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B. Profit and Loss related with Derivatives at 4Q21 and 3Q21

(Unit: KRW million)

Item

4Q21

3Q21

Profit and Loss from valuation

Profit and Loss from Transaction

Profit and Loss from valuation

Profit and Loss from Transaction

Drag-along Right

47,039

-

-

-

8. (Finance) Business Facilities

A. Branch offices and other establishments

(Unit: KRW million)

Region		Branch office			Sales office			Office			Sum
Seoul			-				-				-				-
Gyeonggi-do			-				-				-				-
Chungcheong-do			-				-				-				-
Gangwon-do			-				-				-				-
Gyeongsang-do			2				-				1				3
Jeolla-do			1				-				1				2
Jeju-do			-				-				1				1
Sum			3				-				3				6

B. Equipment and other assets

(Unit: KRW million)

Item		Property			Building			Sum			Note
Main office			310,041				186,076				496,117				-
Branch office			465				2,989				3,454				-
Sum			310,506				189,065				499,571				-

Main office includes real estate for investment (based on acquisition cost)

9. (Finance) Financial Stability

[Major Management Index]

Items		2020			2019			2018			Formula
Capital Adequacy		Adjusted Equity Ratio			35.80				44.19				34.40			Adjusted Equity/ Adjusted Total Assets x 100
	Tangible Common Equity Ratio			35.44				41.43				32.07			Equity/Total Assets x 100
Asset Quality		Loss Risk Weighted Non-performing Loans Ratio			0.08				0.12				0.11			Weighted Non-performing Loans/ Total Loans x 100
	Substandard Loans Ratio			0.11				0.15				0.13			Substandard Loans/ Total Loans x 100
	Loan Loss Provision Ratio			171.83				158.34				131.35			Loan Loss Provision Balance/ Required Provision Amount x 100

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Profitability		Return on Asset			2.47				2.15				3.06			Net profit / Total Assets x 100
	Return on Equity			7.46				6.32				9.55			Net profit/ Equity x 100
	Expenses to Total Assets			5.44				6.24				4.67			Total expenses/ Total Assets x 100
Liquidity		Liquidity Ratio			114.90				112.27				106.08			Current Asset/ Current Liability x 100 (Due in 90 days)
	Operating Assets Ratio			36.31				38.25				41.22			Operating Asset/ Equity

A. Characteristics of the Industry

Credit card business involves issuing and managing credit cards, settling card balances derived from the usage of the card holders, and managing credit card member stores. Credit card business generates revenues through transaction fee, annual fees, financial loans, and others. If a company desires to enter into the credit card business, government licensing is required. Also, government regulations are strict, so this industry has an extremely high barriers to entry.

B. Growth of the Industry

In early 2000, the credit card business grew exponentially with the supportive policies of the Korean government. However, since 2010, the industry is entering into the maturity stage. The growth in number of member stores is slowing down and the average payment amount is decreasing.

C. Characteristics of Economic Cycle and Seasonality

The credit card industry is a typical domestic business which is highly affected by the private consumption trend and overall economic conditions.

D. Market Conditions

(1) Market Stability

(a) Number of Credit Card and Member Merchant Store

Category		Population (in 10K)			Population Available for Economic Activity*1 (in 10K)			Credit Card (in 10K)			Number of Credit Card Per Capital			Number of Member Stores*2 (in 10K)
2015			5,101				2,715				9,314				3.4				242
2016			5,125				2,742				9,564				3.5				250
2017			5,145				2,775				9,946				3.6				257
2018			5,164				2,758				10,506				3.8				269
2019			5,171				2,819				11,098				3.9				281
2020			5,178				2,801				11,373				4.1				290
2021.2Q			5,182				2,860				11,546				4.0				-

Source : Credit Finance Association, Korea

*1	Age 15 or order and must be eligible for employment activity

*2	At least one sales transaction incurred annually from a member store

Accumulated number of credit card issuance is 115,460,000 as of 2Q21. Average credit card holdings of economically active population is 4 cards per person and the number of member merchant stores is 2.9 million as of the end of 2020

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(b) Credit Card Usage in Korea (Unit : KRW billion)

		Credit Card Usage			Credit Card Usage over Private Consumption Expenditure*
Category		Total			Lump-Sum Payment			Installment Payment			Card Loan (Short-term)
2015			594,434.5				435,612.7				99,318.8			59,503.0				60.9	%
2016			655,361.0				489,442.9				106,589.2				59,328.9				66.3	%
2017			686,608.0				512,081.2				115,260.6				59,266.2				67.0	%
2018			724,781.5				539,284.6				124,728.6				60,768.3				68.4	%
2019			760,075.9				572,183.9				128,768.1				59,123.9				71.7	%
2020			705,246.4				572,943.2				132,303.3				54,083.6				75.2	%
2021. 2Q			402,350.7				305,201.0				70,015.7				27,134.0				77.3	%

Source: Credit Finance Association, Korea

Credit card usage is in uptrend and the portion of credit card as a payment method is in very high level as the credit card usage over private consumption expenditure exceeds 70% as of 2Q21.

(2) Competition

(a) Competing Companies:

Samsung Card, Hyundai Card, Lotte Card, Shinhan Card, Woori Card, KB Card and Hana Card etc.

(b) Competition Factors:

The number of member card issuers, card transactions, member stores and card issuance

(3) Market Share

Category		2021			2020			2019
Card transaction M/S			23.05	%			23.5	%			24.1	%

*	Source: BC Card's internal data

E. Competitiveness

In credit card business, solicitation of member merchant stores, development of products and services, customer segment focused marketing services and risk management capabilities for stable asset portfolio are key management factors. With the technological advancement, boundary of financial services has become more abstract, and digital payment market has grown bigger in which competition among financial service providers are increasing. BC Card has lower credit card industry specific risk like deterioration risk of asset soundness while BC card focuses on core business, credit card processing business, and most of its receivables are from high credit institutions like banks and credit card companies. Based on strong foothold in credit card transaction processing market, BC card has built stable revenue stream from middle and small card issuers, which are not available of economy of scale. Moreover, BC Card continues its efforts to provide easy and convenient financial life through simple payment service based on mobile platform 'paybooc' and various financial services.

F. Price change of Major services

In credit card business, solicitation of member merchant stores, development of products and services, customer segment focused marketing services and risk management capabilities for stable asset portfolio are key management factors. With the technological advancement, boundary of financial services has become more

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abstract, and digital payment market has grown bigger in which competition among financial service providers are increasing. BC Card has lower credit card industry specific risk like deterioration risk of asset soundness while BC card focuses on core business, credit card processing business, and most of its receivables are from high credit institutions like banks and credit card companies. Based on strong foothold in credit card transaction processing market, BC card has built stable revenue stream from middle and small card issuers, which are not available of economy of scale. Moreover, BC Card continues its efforts to provide easy and convenient financial life through simple payment service based on mobile platform 'paybooc' and various financial services.

(Unit: %)

Item

2021

2020

2019

Member merchant commission rate

0.8~2.3

0.8~2.3

0.8~2.3

Installment commission rate

11.0~18.5

11.0~18.5

11.0~18.5

Cash advance interest rate

7.9~23.3

7.9~23.3

7.9~23.3

G. Intellectual Property

As of 31^st December 2021, BC card has total 135 patents for core business and most of them are credit card payment methods, transaction authorization and others. Also, BC card has total 797 trademark rights and major trademarks are like below.

Item

Acquisition date

Brand Name

Register Number

Applicable Law

Trademark rights

2010.12.02

BC card

0204148

Trademark act

10. Research and Development Activities

A. R&D Costs-Consolidated Basis (Unit: millions of Korean won, %)

Category		2021			2020			2019
Raw Materials			-				-				-
Labor Costs			83,774				82,225				76,433
Depreciation			22,685				20,732				29,586
Commissions			-				-				-
Others			97,673				120,477				147,502
Total R&D Costs (( 1)			213,969				230,473				253,521
(Subsidy from Government)			8				211				37
Accounting Research and Ordinary Development Costs			168,969				156,940				165,028
Treatment Development Costs (Intangible Assets)			44,992				73,322				88,456
Percentage of R&D Costs over Revenue ( 2)			0.68	%			0.66	%			0.68	%

1:	Total costs before deducted the subsidy from government

2:	Rate of Total costs before deducted the subsidy from government and Total Revenue

B. R&D Organization Structure (KT)

●

Institute of Convergence Technology

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●

Main Mission

•

Securing core technologies to strengthen future business and business competitiveness

•

Establishing mid- and long-term technology strategies for leading future technologies

•

Developing competitive technologies and supporting commercialization to strengthen business competitiveness

•

Developing and securing core technologies for mid- to long-term future

•

NW Platformer based on Smart Connectivity and market&customers

•

Development of network efficiency and optimization technology to strengthen infrastructure competitiveness

•

Realization of operation excellence based on AI/SDN2.0 and completion of intelligent control operating system

•

Development of core technology for OSP stable operation/quantum cryptography service

•

Research and development of 5G Access/Core network and 5G Mobility technology

•

5G core/wireless/control intelligence technology and SW-based infrastructure innovation

•

KT Network Technology Innovation Through R&D of Next Generation Network Technology

•

Developing next-generation wireless core technologies and solutions to enhance competitiveness in the wireless business

•

Development of Network Efficiency and Optimization Technology for the Competitiveness of GiGA Infra Research technology for next generation network

•

Development and Commercialization of Edge-Based IT Architecture + NW Infra Based on SDN

•

AI service and media service fast delivery and AI voice/language core engine development

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•

Technology development for AICC, GiGA Genie and Fast Delivery of AI service

•

AI media service/platform technology development for IPTV and Seezn business delivery

•

Development of language intelligence core engine (conversation/inference/search)

•

Voice/complex intelligence core engine (voice recognition/synthesis/recommendation/TA) development

•

Innovate B2X business through customer-centered platform technology differentiation

•

Develop differentiated Biz solution/platform for enterprise business innovation

•

Developing DX solutions/platforms differentiated by industry such as factories, buildings, and logistics

•

Development of industry AI core technologies/services such as digital twin, vision, and sound

•

Establish an efficient and agile commercialization system of future technologies based on customer self-innovation

•

Future technology sensing/analysis and commercialization item discovery

•

Discover new BM/services from the perspective of customer/market value and execute pretotyping/PoC

•

Securing the basis for promoting the Big Thing business through cooperation/sourcing with key partners

•

Realization in Fast Delivery from discovery of future growth engines to commercialization through 'innovation pipeline' based on AI Core technology

•

Discovering convergence future growth engines

•

No. 1 AI Core technology competency

•

Fast Delivery as a new growth business

11. Other Matters Necessary for Making Investment Decisions

A. Intellectual Property Rights (as of December 31, 2021)

•

ICT (KT)

KT holds 4,341 domestic patents, 4,077 overseas patents and 1,706 trademarks.

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•

Others

KT Skylife holds 16 patents.

KT Hitel holds 83 patents.

Genic music holds 5 domestic patents and 69 trademarks.

KT Telecop holds 37 patents, 5 designs and 72 trademarks.

KTCS holds 1 patent.

KT M-mobile holds 3 trademarks.

Nasmedia holds 2 patents and 3 trademarks

PlayD holds 5 domestic patents.

KTDS holds 8 patents, 7 trademarks, 2 service marks and 12 trade/service marks

Initech holds 37 patents and 35 trademarks.

VP holds 22 patents

III. Financial Information

1. Summary of Financial Statements (Consolidated) (Unit : millions of Korean won)

		2021			2020			2019
Current Assets			11,858,350				11,154,180				11,897,229
•  Cash and Cash Equivalents			3,019,592			2,634,624				2,305,894
•  Trade and Other Receivables			5,087,490			4,902,471				5,906,445
•  Inventories			514,145			534,636				665,498
•  Other Current Assets			3,237,123			3,082,449				3,020,418
Non-current Assets			25,300,991			22,508,365				22,642,869
•  Trade and Other Receivables			1,091,326			1,250,769				1,181,797
•  Property, plant and equipment			14,464,886			14,206,119				13,785,299
•  Investment Property			1,720,654			1,368,453				1,387,430
•  Intangible Assets			3,447,333			2,161,258				2,834,037
•  Investments in Joint Ventures and Associates			1,288,429				557,881				267,660
•  Other Non-Current Assets			3,288,363			2,963,885				3,186,646
Total Assets			37,159,341				33,662,545				34,540,098
Current Liabilities			10,072,432			9,192,472				10,148,056
Non-Current Liabilities			10,519,748			8,918,640				9,208,494
Total Liabilities			20,592,180				18,111,112				19,356,550
Capital Stock			1,564,499			1,564,499				1,564,499
Share Premium			1,440,258			1,440,258				1,440,258
Retained Earnings			13,287,390			12,155,420				11,633,780
Accumulated Other Comprehensive Expense			117,469			86,051				194,934
Other Components of Equity			(1,433,080	)			(1,234,784	)			(1,170,083	)
Non-Controlling Interests			1,590,625			1,539,989				1,520,160
Total Equity			16,567,161				15,551,433				15,183,548

		2021			2020			2019
Operating Revenue			24,898,005				23,916,667				24,342,064
Operating Profit			1,671,824				1,184,107				1,159,566
Profit for the Period			703,392				703,392				665,942
Owners of the Controlling Company			1,356,878				658,025				615,777
Non-controlling interest			102,517				45,367				50,165

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Earnings per share attributable to the equity holders of the Controlling Company during the year (in Korean won):
Basic earnings per share			5,759				2,684				2,512
Diluted earnings per share			5,747				2,683				2,510
Number of Consolidated Companies			79				64				65

2. Summary of Financial Statements (Separate) (Unit : millions of Korean won)

		2021			2020			2019
Current Assets			7,167,047				7,155,734				7,235,243
•  Cash and Cash Equivalents			1,708,714				1,541,210				1,328,397
•  Trade and Other Receivables			3,092,397				3,127,040				3,231,008
•  Other Financial Assets			104,062				268,046				100,830
•  Inventories			289,345				353,310				477,138
•  Other Current Assets			1,972,529				1,866,128				2,097,870
Non-Current Assets			22,195,322				20,872,192				20,977,417
•  Trade and Other Receivables			750,820				1,080,282				1,063,440
•  Other Financial Assets			591,201				180,780				179,240
•  Property and equipment			12,021,117				11,999,717				11,447,952
•  Right-of-use assets			1,078,129				1,152,153				1,194,800
•  Investment Property			997,344				735,563				769,019
•  Intangible Assets			2,236,564				1,583,456				2,239,882
•  Investments in Subsidiaries, Associates and Joint Ventures			3,816,915				3,505,017				3,501,391
•  Other Non-Current Assets			635,224				635,224				581,693

Total Assets			29,362,369				28,027,926				28,212,660
Current Liabilities			6,968,720				6,607,967				6,801,252
Non-Current Liabilities			8,528,755				8,518,112				8,518,112
Total Liabilities			15,497,475				14,824,369				15,319,364
Capital Stock			1,564,499				1,564,499				1,564,499
Share Premium			1,440,258				1,440,258				1,440,258
Retained Earnings			11,233,714				11,233,714				10,866,582
Accumulated Other Comprehensive Income			125,610				42,906				23,449	)
Other Components of Shareholders' Equity			(1,077,820	)			(1,001,492	)			(1,001,492	)
Total Equity			13,203,557				12,893,296				12,893,296

		2021			2020			2019
Operating Revenue			18,387,434				17,879,281				18,204,751
Operating Profit			1,068,273				878,239				747,722
Profit for the Period			990,491				665,493				428,422
Earnings per share (in Korean won):
Basic earnings per share			4,211				2,714				1,747
Diluted earnings per share			4,203				2,713				1,747

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IV. Auditors' Opinion

1. Auditors' opinion on the consolidated/separate financial statements

Fiscal Year		Auditor		Audit Comments		Issues noted		Key Audit Matters
2021		Samil PwC		Unqualified		Not applicable.		1. Cash-Generating Unit Impairment Assessment in Parent 2. Business Combination Accounting-HyundaiHCN(Consoliated) 3. Business Combination Accounting-Epsilon Global Communications(Consoliated)
2020		Samil PwC		Unqualified		The financial statements for the fiscal year ending on December 31, 2019 are rewritten, as the retrospectively applying the effect of the change in accounting policy due to the change in the lease term calculation method.		Cash-Generating Unit Impairment Assessment
2019		Samil PwC		Unqualified		Not applicable		1. Impairment of investment in subsidiaries, associates and joint ventures 2. Cash-Generating Unit Impairment Assessment

2. Audit services contract (Unit : millions of Korean won, hours)

Fiscal Year

Auditor

Contents

Contractual

Actual

Compensation

Total Time

Compensation

Total Time

2021

Samil PwC

Review interim financial statements

3,200

33,000

3,200

33,028

Audit of Separate financial statements

Audit of the consolidated financial statements

20-F Filing

2020

Samil PwC

Review interim financial statements

3,200

33,000

3,200

33,062

Audit of Separate financial statements

Audit of the consolidated financial statements

20-F Filing

2019

Samil PwC

Review interim financial statements

3,000

39,024

3,000

35,121

Audit of Separate financial statements

Audit of the consolidated financial statements

20-F Filing

Financial Statement Review and Audit Period, Internal Accounting Management System Audit (Review) Period

Category		2021		2020		2019
1st quarter review		From April 1, 2021 to May 15, 2020		From April 1, 2020 to May 15, 2020		From April 13, 2019 to May 15, 2019

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2nd quarter review		From July 12, 2021 to August 17, 2021		From July 13, 2020 to August 14, 2020		From July 13, 2019 to August 14, 2019
3rd quarter review		From October 11, 2021 to November 15, 2021		From October 15, 2020 to November 16, 2020		From October 13, 2019 to November 14, 2019
Audit of systems and automatic internal controls		From May 16, 2021 to June 30, 2021, From August 15, 2021 to September 30, 2021, From November 16, 2020 to December 31, 2021		From May 18, 2020 to June 30, 2020, From August 18, 2020 to September 29, 2020, From November 17, 2020 to December 31, 2020		From May 20, 2019 to June 28, 2019, From August 19, 2019 to September 30, 2019, From November 18, 2019 to February 5, 2020
Early proof audit		From May 9, 2021 to December 30, 2021		From May 11, 2020 to December 24, 2020		From May 6, 2019 to December 27, 2019
Internal Accounting Management System Audit (Review)		From May 9, 2021 to March 10, 2022		From May 11, 2020 to March 9, 2021		From May 6, 2019 to March 10, 2020
Update Early Proof Audit Procedure and Financial Statement Audit		From January 3, 2022 to March 10, 2022		From January 2, 2021 to March 9, 2021		From January 2, 2020 to March 10, 2020

3. Non-Audit services contract (Unit : millions of Korean won)

Fiscal Year		Contract date		Contents		Service period		Compensation
2021		July 2021		Comfort letter		July 2021			100
2020		August 2020		Comfort letter		August 2020			100
2019		July 2019		Comfort letter		July 2019			100

4. The results of the Internal Audit Organization's discussion with the auditor

Date		Attendee		Method		Main Discussion Content
March 4, 2021		- KT Audit committee, - Audit committee, executive secretary, Compliance officer, etc. - Auditor : 3 people (Director of Business Conductor, etc.)		A face-to-face meeting		- Report on the results of external auditors' end-of-term audit of 2020 - Results of Key Audit Matters
March 4, 2021		- Audit committee, executive secretary, Compliance officer, etc. - Auditor : 3 people (Director of Business Conductor, etc.)		A face-to-face meeting		- Key matters related to external audit
April 8, 2021		- KT Audit committee, - Audit committee, executive secretary, Compliance officer, etc. - Auditor : 3 people (Director of Business Conductor, etc.)		A face-to-face meeting		- Annual audit plan for 2021 - Scope and timing of audit, independence
May 11, 2021		- KT Audit committee, - Audit committee, executive secretary, Compliance officer, etc. - Auditor : 2 people (Director of Business Conductor, etc.)		A face-to-face meeting		- Results of the first quarter of 2020 review

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May 11, 2020		- Audit committee, executive secretary, Compliance officer, etc. - Auditor : 2 people (Director of Business Conductor, etc.)		A face-to-face meeting		- Key matters related to external audit
August 10, 2021		- KT Audit committee, - Audit committee, executive secretary, Compliance officer, etc. - Auditor : 2 people (Director of Business Conductor, etc.)		A face-to-face meeting		- Results of the second quarter of 2020 review
August 10, 2021		- Audit committee, executive secretary, Compliance officer, etc. - Auditor : 3 people (Director of Business Conductor, etc.)		A face-to-face meeting		- Key matters related to external audit
November 9, 2021		- KT Audit committee, - Audit committee, executive secretary, Compliance officer, etc. - Auditor : 2 people (Director of Business Conductor, etc.)		A face-to-face meeting		- Results of the third quarter of 2020 review
December 10, 2021		- KT Audit committee, - Audit committee, executive secretary, Compliance officer, etc. - Auditor : 2 people (Director of Business Conductor, etc.)		A face-to-face meeting		- Important risks identified by the auditor, selection of key audit items, and auditing by item, etc.
December 10, 2021		- Audit committee, executive secretary, Compliance officer, etc. - Auditor : 2 people (Director of Business Conductor, etc.)		A face-to-face meeting		- Key matters related to external audit

5. Dividends and Related Matters

Dividend Policy from FY2020 to FY2022

•

Return 50% of normalized separate net income

•

Maintain equal to or greater than the dividends for FY2019(KRW 1,100 per share)

Category		FY2021			FY2020			FY2019
Par Value per Share (Won)			5,000				5,000				5,000
Net Profit of the Current Term (in Millions of Won)			1,459,395				703,392				665,942
Net Profit per Share (Won)			5,759				2,684				2,512
Year-end Cash Dividend (in Millions of Won)			450,394				326,487				269,766
Year-end Share Dividend (in Millions of Won)			-				-				-
Cash Dividend Pay Out (%)			33.2				49.6				43.8
Cash Dividend Yield (%)		Common Shares			5.9				5.3				4.0
	Preferred Shares			-				-				-
Cash Dividend per Share (Won)		Common Shares			1,910				1,350				1,100
	Preferred Shares			-				-				-

•

Net Profit, Net profit per share, Cash dividend Pay Out are based on consolidated result.

•

Cash dividend Pay Out(%) is calculated on a basis of Net Profit contribution to KT.

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•

Cash dividend yield(%) is the percentage of dividends per share against the arithmetic average price of the final price formed in the exchange market for the past week from the date of the two trading days before the closing date of the shareholders 'list to convene the general shareholders' meeting.

V. Management and Affiliated Companies

1. Overview of the Board of Directors and Committees

A. Matters on the Board of Directors

(1) Organization

As of December 31, 2021, the Board of Directors of KT consists of 11 Directors (3 Inside Directors and 8 Outside Directors). Under the Board of Directors, KT has eight different Committees as follows; Representative Director Candidate Examination Committee, Corporate Governance Committee, Outside Director Candidate Recommendation Committee, Audit Committee, Evaluation & Compensation Committee, Executive Committee, Related-Party Transaction Committee and Corporate Sustainability Management Committee. The Board of Directors may establish additional committees if necessary. The Chairman of the Board of Directors is elected separately with CEO and the Board of Directors appoints one of the outside director as a chairman annually. Currently, The Board Chairman is Director Hee-Yol Yu who has enough leadership to coordinate members of the Board.

Please refer to 'VIII. Directors, Senior Management and Employees' to see each director's major career.

• The Number of Outside Directors and its change

The Number of Directors		The Number of Outside Directors			Change of Outside Directors
	Appointment			Dismissal			Interim resignation
11			8				2				-				-

Numbers are results of the 39th AGM 2021.

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(2) Major Activities of the Board of Directors

Order

Date

Subject

Result of Discussion

Outside Director

Inside Director

Dae-You Kim

Gang- Cheol Lee

Hee-Yol Yu

Tae-Yoon Sung

Hyun- Myung Pyo

Chung-Gu Kang

Chan-Hi Park

Eun-Jung Yeo

Hyeon-Mo Ku

Yoon- Young Park

Jong-Ook Park

Attendance 100%

Attendance 84.6%

Attendance 100%

Attendance 100%

Attendance 92.3%

Attendance 92.3%

Attendance 100%

Attendance 100%

Attendance 50%

Attendance 0%

Attendance 100%

1st

2021. 1. 21

Proposal on Corporate Sustainability Management Plan in 2021

Original proposal approved

For

For

For

For

For

For

For

For

For

Absence

For

Proposal on donation of 2021 CSR fund

Original proposal approved

For

For

For

For

For

For

For

For

For

Absence

For

Proposal of Project Praha

Original proposal approved

For

For

For

For

For

For

For

For

For

Absence

For

2nd

2021.2.9

Approval of financial statements(separate and consolidated) of the 39th term

Original proposal approved

For

For

For

For

For

For

For

For

For

Absence

For

Approval of Business reports of the 39th term

Original proposal approved

For

For

For

For

For

For

For

For

For

Absence

For

Report on matters for resolution of executive committee for 2H 2020

Original proposal accepted

For

For

For

For

For

For

For

For

For

Absence

For

Proposal on revision of operating rules of the board meeting and the board committee

Original proposal approved

For

For

For

For

For

For

For

For

For

Absence

For

40

Table of Contents

Order

Date

Subject

Result of Discussion

Outside Director

Inside Director

Dae-You Kim

Gang- Cheol Lee

Hee-Yol Yu

Tae-Yoon Sung

Hyun- Myung Pyo

Chung-Gu Kang

Chan-Hi Park

Eun-Jung Yeo

Hyeon-Mo Ku

Yoon- Young Park

Jong-Ook Park

Attendance 100%

Attendance 84.6%

Attendance 100%

Attendance 100%

Attendance 92.3%

Attendance 92.3%

Attendance 100%

Attendance 100%

Attendance 50%

Attendance 0%

Attendance 100%

3nd

2021.3.9

Approval of financial statements(separate and consolidated) of the 39th term

Original proposal approved

For

For

For

For

For

For

For

For

For

Absence

For

Approval of Business reports of the 39th term

Original proposal approved

for

for

for

for

for

for

for

for

for

Absence

for

Approval of convening of the 39th regular general meeting of shareholders

Original proposal approved

for

for

for

for

for

for

for

for

for

Absence

for

Report on inspection results of the internal accounting management system in 2020 by Audit committee

Original proposal accepted

for

for

for

for

for

for

for

for

for

Absence

for

Report on the results of the audit committee's evaluation of the operation status of the internal accounting management system in 2020

Original proposal accepted

for

for

for

for

for

for

for

for

for

Absence

for

Proposal on Standards and Method of Payment on Remuneration of CEO and Inside Directors

Original proposal approved

for

for

for

for

for

for

for

for

-*

-*

-*

Proposal on Limit of Remuneration of Directors

Original proposal approved

for

for

for

for

for

for

for

for

for

Absence

for

Proposal on Limit of Remuneration, distinction and the number of administration executives

Original proposal approved

for

for

for

for

for

for

for

for

for

Absence

for

Amendment of the articles of incorporation

Original proposal approved

for

for

for

for

for

for

for

for

for

Absence

for

Recommendation of Audit committee candidate

Recommendation of Audit committee candidate

for

for

for

for

for

for

for

for

for

Absence

for

Agreement on Recommendation of inside director candidate

Recommendation of Inside Director Candidate agreed

for

for

for

for

for

for

for

for

for

-*

-*

*	No voting right for Inside directors

41

Table of Contents

2021. 3. 29 the 39th AGM

•

Term of Inside director Yoon-Young Park expired, Inside director Kook-Hyun Kang newly appointed, Inside director Jong-Ook Park reappointment

•

Outside director Gang-Cheol Lee, Dae-You Kim reappointment

Order

Date

Subject

Result of Discussion

Outside Director

Inside Director

Dae-You Kim

Gang-Cheol Lee

Hee-Yol Yu

Tae-Yoon Sung

Hyun-Myung Pyo

Chung-Gu Kang

Chan-Hi Park

Eun-Jung Yeo

Hyeon-Mo Ku

Jong-Ook Park

Kook-Hyun Kang

Attendance 100%

Attendance 84.6%

Attendance 100%

Attendance 100%

Attendance 100%

Attendance 100%

Attendance 100%

Attendance 100%

Attendance 100%

Attendance 100%

Attendance 90%

4th

2021. 3. 30

Proposal on election of the BOD chairman and committee organization

Chairman of BOD and members of committees appointed

for

Absence

for

for

for

for

for

for

for

for

for

Approval of investment in kind of KT StudioGenie

Original proposal approved

for

Absence

for

for

for

for

for

for

for

for

for

Report on 'Anti-Corruption Code of Conduct' legislation

Original proposal accepted

for

Absence

for

for

for

for

for

for

for

for

for

5th

2021.4.13

Approval of US filing consolidate financial statements of FY2020

Original proposal approved

for

for

for

for

for

for

for

for

for

for

for

Approval of Appointment of Compliance Officer

Original proposal approved

for

for

for

for

for

for

for

for

for

for

for

Approval of securing a base space for media content business

Original proposal modified and accepted

for

for

for

for

for

for

for

for

for

for

for

Approval of securing work space for customer center

Original proposal modified and accepted

for

for

for

for

for

for

for

for

for

for

for

42

Table of Contents

6th

2021. 5.13

Report on financial statements(separate and consolidated) of 1Q FY2021

Original proposal accepted

for

for

for

for

for

for

for

for

for

for

for

Approval of incorporation of KT Seezn

Original proposal approved

for

for

for

for

for

for

for

for

for

for

for

7th

2021. 6.17

Proposal on provision of long term incentive and disposition of treasury share for 2020

Original proposal approved

for

for

for

for

for

for

for

for

-*

-*

-*

Proposal on limit of long term incentive and criteria of stock compensation for 2021

Original proposal approved

for

for

for

for

for

for

for

for

-*

-*

-*

Proposal on handling provided long term incentives

Original proposal approved

for

for

for

for

for

for

for

for

for

for

Absence

Report on inspection results of compliance management

Original proposal accepted

for

for

for

for

for

for

for

for

for

for

Absence

Approval of sale of some shares of 'yanolja'

Original proposal approved

for

for

for

for

for

for

for

for

for

for

Absence

Report on financial performance of corporates invested less than 15 billion won in 2020

Original proposal accepted

for

for

for

for

for

for

for

for

for

for

Absence

Approval of Epsilon Acquisition promotion

Original proposal approved

for

for

for

for

for

for

for

for

for

for

Absence

43

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8th

2021.7.20

Approval of M-BcN Construction project

Original proposal approved

for

for

for

for

for

for

for

for

for

for

for

9th

2021.8.12

Report of financial statements(separate and consolidated) of the 1H 2021

Original proposal accepted

for

for

for

for

for

for

for

for

for

for

for

Report on matters for resolution of Executive Committee for 1H 2021

Original proposal accepted

for

for

for

for

for

for

for

for

for

for

for

10th

2021.9.16

Proposal on donation of corporate partnership investment fund for operating collaboration programs with partners

Original proposal approved

for

for

for

for

for

for

for

for

for

for

for

Approval of safety and health plan of 2021

Original proposal approved

for

for

for

for

for

for

for

for

for

for

for

Approval of development project plan (Beom-A Building)

decision pending

for

for

for

for

for

for

for

for

for

for

for

Approval of capital increase of KT StudioGenei

Original proposal approved

for

for

for

for

for

for

for

for

for

for

for

Report on matters for occasional reorganization in 2021

Original proposal accepted

for

for

for

for

for

for

for

for

for

for

for

Proposal on composition of Outside Director Candidate Recommendation Committee and selection criteria for Outside Director Candidate

Passed resolution organizing committee and confirmed Outside director candidate selection criteria

for

for

for

for

for

for

for

for

for

for

for

44

Table of Contents

11th

2021.10.29

Approval of disability compensation such as Internet service

Original proposal modified and accepted

for

for

for

for

for

for

for

for

for

for

for

12th

2021.11.9

Report on financial statements(separate and consolidated) of 3Q FY2021

Original proposal accepted

for

Absence

for

for

for

for

for

for

for

for

for

Approval of development business plan (Beom-A Building)

Original proposal approved

for

Absence

for

for

for

for

for

for

for

for

for

Proposal on donation to labor welfare fund in 2021

Original proposal approved

for

Absence

for

for

for

for

for

for

for

for

for

Proposal on disposition of treasury shares

Original proposal approved

for

Absence

for

for

for

for

for

for

for

for

for

Approval of 'My data' Business promotion

Original proposal approved

for

Absence

for

for

for

for

for

for

for

for

for

13th

2021.12.16

Proposal on 2022 management plan

Original proposal approved

for

for

for

for

for

for

for

for

for

for

for

Report on matters for reorganization in 2022

Original proposal accepted

for

for

for

for

for

for

for

for

for

for

for

(*) No voting right for Inside directors

45

Table of Contents

(3) The Status of Committees under the Board of Directors

(a) Organization of the Committees under the Board of Directors (as of December 31, 2021)

Committee		Composition		Name		Purpose of Establishment and Authority
Representative Director Candidate Examination Committee		All Outside Directors & 1 Inside Director		-		According to Article 32(Representative Director Candidate Examination Committee), examine CEO candidates and make a short list
Corporate Governance Committee		4 Outside Directors, & 1 Inside Director		Gang-Cheol Lee(Chairperson), Dae-You Kim, Hee-Yol Yu, Hyun-Myung Pyo, Jong-Ook Park		Matters related with corporate governance ø Article 41-2(CG Committee)
Outside Director Candidate Recommendation Committee		All Outside Directors (exclude directors whose term to be expired) & 1 Inside Director		Chung-Gu Kang(Chairperson) Gang-Cheol Lee, Dae-You Kim, Hyun-Myung Pyo, Eun-Jung Yeo, Jong-Ook Park		Recommendation of Outside candidates to the general meeting ø See V. 1.(4) Independence of the Board of Directors for the Outside Director Candidate Recommendation Committee ø Commercial Act §542: 8(appointment of Outside Directors), Article 42(Outside Director Candidates Recommendation Committee)
Audit Committee		4 Outside Directors		Dae-You Kim(Chairperson), Tae-Yoon Sung, Chung-Gu Kang, Eun-Jung Yeo		Matters related with financial and performance audit ø See V. 2. Audit system ø Commercial Law §542: 11 (Audit Committee) 1st article ø Article 43(Audit Committee)
Evaluation & Compensation Committee		4 Outside Directors		Tae-Yoon Sung(Chairperson), Hee-Yol Yu, Hyun-Myung Pyo, Chan-Hi Park		Management Agreement with the CEO and Assessment
Executive Committee		3 Inside Directors		Hyeon-Mo Ku(Chairperson), Jong-Ook Park, Kook-Hyun Kang		Management matters authorized by the Board of Directors
Related-party Transaction Committee		4 Outside Directors		Chan-Hi Park(Chairperson), Hee-Yol Yu, Chung-Gu Kang, Eun-Jung Yeo		Under the Commercial Act : Matters about approval of using business opportunities of company, Transaction between directors and company, Transactions which need to be approved by the Board of Directors among transactions with the largest shareholder and specially related persons and Internal trading stipulated by the Monopoly Regulation and Fair Trade Act
Corporate Sustainability Management Committee		4 Outside Directors, & 1 Inside Director		Hyun-Myung Pyo(Chairperson), Gang-Cheol Lee, Tae-Yoon Sung, Chan-Hi Park, Kook-Hyun Kang		Matters about Corporate Sustainability Management

46

Table of Contents

(b) Activities of the Committees under the Board of Directors

•

President Candidate Examination Committee : Not applicable

•

Corporate Governance Committee

Order

Meeting Date

Agenda

Results of discussion

Outside Director

Inside Director

Gang-Cheol Lee

Dae-You Kim

Hee-Yol Yu

Hyun-Myung Pyo

Jong-Ook Park

Attendance 100%

Attendance 100%

Attendance 100%

Attendance 100%

Attendance 100%

1st

2021.02.09

Report on revision of operating rules of the board meeting and the board committee

Original proposal modified and accepted

For

For

For

For

For

2nd

2021.02.25

Report on amendment of the articles of incorporation

Original proposal accepted

For

For

For

For

For

•

Outside Director Candidate Recommendation Committee : Refer to "(4) Independence of the Board of Directors" for details

•

Audit Committee : Refer to "2. Audit System major Activities of the Audit Committee" for details

•

Evaluation & Compensation Committee

Order

Meeting Date

Agenda

Results of discussion

Outside Director

Inside Director

Hee-Yol Yu

Gang-Cheol Lee

Hyun-Myung Pyo

Chan-Hi Park

Attendance 100%

Attendance 100%

Attendance 100%

Attendance 100%

1st

2021.03.04

Evaluation result of CEO's management goal achievement for 2020

Evaluation results confirmed

For

For

For

For

Proposal on CEO's management goal for 2021

Original proposal modified and approved

For

For

For

For

Report on Standards and Method of Payment on Remuneration of CEO and Inside Directors

Original proposal approved

For

For

For

For

47

Table of Contents

ø	The 4th Board Meeting of 2021 (2021.3.30) :

•

The Evaluation & Compensation Committee was formed by outside director Tae-Yoon Sung(Chairperson), Hee-Yol Yu, Hyun-Myung Pyo, Chan-Hi Park

Order

Meeting Date

Agenda

Results of discussion

Outside Director

Tae-Yoon Sung

Hee-Yol Yu

Hyun-Myung Pyo

Chan-Hi Park

Attendance 100%

Attendance 66.7%

Attendance 100%

Attendance 100%

2nd

2021.06.15

Report on provision of long term incentive and disposition of treasury share for 2020

Original proposal accepted

for

for

for

for

Report on limit of long term incentive and criteria of stock compensation for 2021

Original proposal accepted

for

for

for

for

•

Executive Committee

Order

Meeting Date

Agenda

Results of discussion

Inside Director

Hyeon-Mo Ku

Yoon-Young Park

Jong-Ook Park

(Attendance:100%)

(Attendance:0%)

(Attendance: 100%)

1st

2021.01.14

Plan for issuance of 194th KT corporate bonds

Original proposal approved

for

Absence

for

Approval of the promotion plan for the new content corporation

Original proposal approved

for

Absence

for

48

Table of Contents

2nd

2021.01.27

Approval of establishment, relocation, and abolition of branches

Original proposal approved

for

Absence

for

Approval of investment 'Future Innovation Fund III'

Original proposal approved

for

Absence

for

3rd

2021.02.04

KT Handset Account Receivable Selling Plan for 2021

Original proposal approved

for

Absence

for

4th

2021.02.24

Approval of investment of Project Olaf

Original proposal approved

for

Absence

for

ø	the 39th AGM on March 29, 2021

•

Inside director Yoon-Young Park expired, Kook-Hyun Kang newly appointed, Jong-Ook Park reappointment

Order

Meeting Date

Agenda

Results of discussion

Inside Director

Hyeon-Mo Ku

Jong-Ook Park

Kook-Hyun Kang

(Attendance:100%)

(Attendance: 100%)

(Attendance: 100%)

5th

2021.04.12

Approval of investment of Project Alaska

Original proposal approved

for

for

for

Approval of investment of Project Stellar

Original proposal approved

for

for

for

6th

2021.05.26

Plan for issuance of 195th KT corporate bonds

Original proposal approved

for

for

for

7th

2021.06.16

Approval of investment of Project Wyoming

Original proposal approved

for

for

for

8th

2021.7.6

Plan for issuance of 2021 1st KT foreign currency corporate bonds

Original proposal approved

for

for

for

9th

2021.7.20

Approval of investment in New Industry Advancement Investment Association with KT-IBK

Original proposal approved

for

for

for

10th

2021.8.18

Approval of BHH acquisition for disposal of Ochang site and relocation of communication facilities on site

Original proposal approved

for

for

for

49

Table of Contents

11th

2021.8.25

Approval of investment in Strategic Investment Association No. 6

Original proposal approved

for

for

for

12th

2021.11.24

Approval for acquiring land adjacent to Jeonnong Building

Original proposal approved

for

for

for

13th

2021.12.22

Approval of blind fund investment for real estate (IDC) business growth

Original proposal approved

for

for

for

Approval of establishment and address transfer of branch offices

Original proposal approved

for

for

for

•

Related-Party Transaction Committee

Order

Meeting Date

Agenda

Results of discussion

Outside Director

Chan-Hi Park

Hee-Yol Yu

Chung-Gu Kang

Eun-Jung Yeo

Attendance 100%

Attendance 100%

Attendance 100%

Attendance 100%

1st

2021.09.03

Proposal on participating in paid-in capital increase for lolab

Original proposal approved

for

for

for

for

•

Corporate Sustainability Management Committee

Order

Meeting Date

Agenda

Results of discussion

Outside Director

Inside Director

Hyun-Myung Pyo

Gang-Cheol Lee

Chan-Hi Park

Tae-Yoon Sung

(Attendance: 100%)

(Attendance: 100%)

(Attendance: 100%)

(Attendance: 100%)

(Attendance: 0%)

1st

2021.01.19

Report on 2021 Corporate Sustainability Management plan

Original proposal accepted

for

for

for

for

Absence

50

Table of Contents

ø	the 39th AGM on March 29, 2021

•

Inside director Yoon-Young Park expired, Kook-Hyun Kang newly appointed,

Order

Meeting Date

Agenda

Results of discussion

Outside Director

Inside Director

Hyun-Myung Pyo

Gang-Cheol Lee

Chan-Hi Park

Tae-Yoon Sung

Kook-Hyun Kang

(Attendance: 100%)

(Attendance: 100%)

(Attendance: 100%)

(Attendance: 100%)

(Attendance: 100%)

2nd

2021.05.13

Approval to appear in a win-win cooperation organization to spread a culture of shared growth

Original proposal approved

for

for

for

for

for

3rd

2021.08.12

Report on result of Corporate Sustainability Management assessment for the 1H 2021

Original proposal accepted

for

for

for

for

for

4th

2021.12.16

Report on result of Corporate Sustainability Management assessment for 2021

Original proposal accepted

for

for

for

for

for

(4) Independence of the Board of Directors

(a) Independence of appointing BOD members

In order to secure independence and transparency, outside director candidate should be recommended to the AGM by Outside director candidate committee and the outside search and advisory service may be conducted if necessary. Inside director, excluding representative director, should be recommended among executives by representative director with consent of the board of directors and selected from the AGM following the articles of incorporation.

51

Table of Contents

(b) Appointment of new Directors and recommender (as of December 31, 2020)

Title

Name

Tenure

Consecutive term (number of term)

Appointment background

Recommendation

Acting area as a director

Transactions with the company, relationship with major shareholders

Representative director

Hyeon-Mo Ku

March of 2020 ~ AGM day of 2023

-

ICT/Management expert

BOD

Executive committee

None

Inside director

Jong-Ook Park

March of 2020 ~ AGM day of 2022

Consecutive term (1)

ICT/Management expert

Representative director (w/ the consent of BOD)

Executive committee Corporate governance committee Outside director candidate recommendation committee

None

Inside director

Kook-Hyun Kang

March of 2021 ~ AGM day of 2022

-

ICT/Management expert

Representative director (w/ the consent of BOD)

Executive committee Corporate sustainability management committee

None

Outside director

Dae-You Kim

March of 2018 ~ AGM day of 2024

Consecutive term (1)

Corporate relations expert

Outside director candidate recommendation committee

Chairperson of Audit committee Corporate governance committee Outside director candidate recommendation committee

None

52

Table of Contents

Outside director

Gang-Cheol Lee

March of 2018 ~ AGM day of 2024

Consecutive term (1)

Corporate relations expert

Outside director candidate recommendation committee

Chairperson of Corporate governance committee, Corporate sustainability management committee Evaluation and compensation committee

None

Outside director

Hee-Yol Yu

March of 2019 ~ AGM day of 2022

-

ICT expert

Outside director candidate recommendation committee

Chairperson of BOD Corporate governance committee Evaluation and compensation committee Related-party transaction committee

None

Outside director

Tae-Yoon Sung

March of 2019 ~ AGM day of 2022

-

Global affairs /Economy expert

Outside director candidate recommendation committee

Chairperson of Evaluation and compensation committee, Audit committee Corporate sustainability management committee

None

Outside director

Hyun-Myung Pyo

March of 2020 ~ AGM day of 2023

-

ICT/Management expert

Outside director candidate recommendation committee

Chairperson of Corporate sustainability management committee, Corporate governance committee, Evaluation and compensation committee Outside director candidate recommendation committee

None

53

Table of Contents

Outside director

Chung-Gu Kang

March of 2020 ~ AGM day of 2023

-

Telecommunication ICT expert

Outside director candidate recommendation committee

Audit committee, Related-party transaction committee Outside director candidate recommendation committee

None

Outside director

Chan-Hi Park

March of 2020 ~ AGM day of 2022

-

Management expert

Outside director candidate recommendation committee

Chairperson of Related party transaction committee Evaluation and compensation committee, Corporate sustainability management committee

None

Outside director

Eun-Jung Yeo

March of 2020 ~ AGM day of 2023

Accounting·Finance expert

Outside director candidate recommendation committee

Audit committee, Related-party transaction committee Outside director candidate recommendation committee

None

54

Table of Contents

Tenure : Tenure as a director

(c)	Establishing separate committee to appoint new directors

The 10th Board meeting of 2021 (2021.9.16) : Chairperson and members of Outside Director Candidate Recommendation Committee appointed

Name		Whether Outside Director		Note
Chung-Gu Kang (Chairperson)		O		The number of Outside Directors should be more than 50% (fulfilled requirements stipulated in Commercial Act 542(8) 4.)
Gang-Cheol Lee		O
Dae-You Kim		O
Hyun-Myung Pyo		O
Eun-Jung Yeo		O
Jong-Ook Park		X

Excluded Outside Director Hee-Yol Yu, Tae-Yoon Sung, Chan-Hi Park whose tenure ended by the AGM of 2022

•

Outside Director Candidate Recommendation Committee

Order

Meeting Date

Agenda

Results of discussion

Outside Director

Inside Director

Hee-Yol Yu

Tae-Yoon Sung

Hyun- Myung Pyo

Chung-Gu Kang

Chan-Hi Park

Eun-Jung Yeo

Jong-Ook Park

(Attendance: 100%)

(Attendance: 100%)

(Attendance: 100%)

(Attendance: 100%)

(Attendance: 100%)

(Attendance: 100%)

(Attendance: 100%)

1st

2021.02.25

Final decision on Outside Director candidates

Candidates decided

for

for

for

for

for

for

for

The 10^th Board meeting of 2021 (2021.9.16) : Chairperson and members of Outside Director Candidate Recommendation Committee appointed

55

Table of Contents

Order

Meeting Date

Agenda

Results of discussion

Outside Directors

Inside Directors

Chung-Gu Kang

Gang- Cheol Lee

Dae-You Kim

Hyun- Myung Pyo

Eun-Jung Yeo

Jong-Ook Park

(Attendance: 100%)

(Attendance: 100%)

(Attendance: 100%)

(Attendance: 100%)

(Attendance: 100%)

(Attendance: 100%)

2nd

2021.11.04

Proposal on operating plan of Outside Director Candidate Recommendation Committee

Committee operating plan approved

for

for

for

for

for

for

(5) Expertise of Outside Directors

KT established a dedicated team(corporate governance team) for outside directors to support the board meeting and committee activities. The corporate governance team provides explanatory meetings in advance, if necessary, to make agendas fully considered and information on business issues.

(a) Supportive team for Outside Directors

Department		Number of Staffs		Job Position(years served)		Activity history
BOD Office of the Management Planning Department		9		Office Director 1 (3.9 years of service) Team leader 2 (1.3 years of service on average) Vice director 2 (2.3 years of service on average) Manager 3 (4.7 years of service on average) Assistant manager 1 (0.3 years of service)		- Provides daily news about the company and telecom policies and report on major issues - Reports on preliminary check result for meeting items - Provides other information needed for outside directors' job and supports for their requests.

Years served are counted up to date of disclosure

56

Table of Contents

(b) Education for outside directors

Date		Education provider		Attended outside director		Reasons for absence		Education contents
2021. 01. 14		KT		All		-		Cloud/IDC business status and strategy
2021. 01. 19		KT		All		-		Major regulation issues and responds in
2021. 01. 28		KT		Hee-Yol Yu Hyun-Myung Pyo Chung-Gu Kang		for applicants		Financials
2021. 02. 25		KT		All		-		My data business status and strategy KT Group management direction and achievements
2021. 03. 09		KT		Hee-Yol Yu Dae-You Kim Tae-Yoon Sung Hyun-Myung Pyo Chung-Gu Kang Chan-Hi Park Eun-Jung Yeo		private schedule (Alternatively provided education materials		Group Media/Contents business management plan
2021. 04. 13		KT		All		-		Group Real estate business status and strategy Robot business status and strategy The potential and limitations of AI technology
2021. 05. 13		KT		All		-		DX business growth strategy
2021. 06. 15		KT		All		-		Notes for Compliance with the Anti-Corruption Code of Conduct
2021. 06. 17		KT		All		-		Internet Bank estate business status and strategy Digital Health-care business status and strategy
2021. 08. 10		KT		Hee-Yol Yu Gang-Cheol Lee Dae-You Kim Hyun-Myung Pyo Chung-Gu Kang Chan-Hi Park Eun-Jung Yeo		private schedule (Alternatively provided education materials		Business performance in the first half and management direction in the second half
2021. 08. 12		KT		All		-		Cloud business market competition and response Global business status and strategy video training of Anti-corruption
2021. 09. 14		KT		All		-		Financial business market change and response
2021. 09. 16		external auditor		All		-		Internal accounting management system*
2021.10.19		external instructor		Hee-Yol Yu Dae-You Kim Hyun-Myung Pyo Chung-Gu Kang Chan-Hi Park Tae-Yoon Sung Eun-Jung Yeo		private schedule (Alternatively provided education materials		A Study on the Role of the KT Board of Directors

*	CEO Hyeon-Mo Ku, inside director Jong-Ook Park, Kook-Hyun Kang attended

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2. Audit Committee

(1) Personal Information of Members of the Audit Committee (As of December 31, 2020)

Name		Outside Director		Experience		Accounting/ Finance Expert
	Expert		Expertise		Relevant career
Dae-You Kim		Yes		- Economic Policy Top Secretary, Presidential Secretariat (Vice Minister Level) - Vice Chairman, Wonik Investment Partners - Outside Director, DB Life Insurance Co., Ltd(Present)		-		-		-
Tae-Yoon Sung		Yes		- Professor at School of Economics, Yonsei University - Dean of Underwood International College, Yonsei University - Director at Korea Money and Finance Association - Editorial Member at Editorial Committee, Korea Economic Association		-		-		-
Chung-Gu Kang		Yes		- Professor at College of Engineering, Korea University - Member of the National Academy of Engineering of Korea - Honorary President at Korea Institute of Communication and Information Sciences - Chair at Consultative Committee for Radio Policy, Ministry of Science and ICT		-		-		-
Eun-Jung Yeo		Yes		- Profess at College of Business, Chung-Ang University - Member of Asset Management Committee for Employment Insurance / Industrial Insurance Fund, Ministry of Employment and Labor - Member of Financial subcommittee, Consumer Policy Committee, Fair Trade Commission, Prime Minister's Office - Vice President at Korea Money and Finance Association		Yes		Ph.D. in Finance and accounting		- Qualification : Ph.D. in Economics, University of Michigan - Work Length : Profess at College of Business, Chung-Ang University (2013-Present)

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(a) Finance and accounting expert

Director Dae-You Kim is reelected as member of Audit Committee at AGM on March 29th, 2021. Amongst Audit committee members, Director Eun-Jung Yeo is a finance/accounting expert. Director Eun-Jung Yeo received Ph,D in Economics and has worked from September, 2013 as a professor of School of Business, Chung-Ang University.

Director Eun-Jung Yeo is an expert in corporate finance (CSR, remuneration, governance, behavioral finance), Fintech (payment, virtual currency), financial brokerage (credit information, credit card, banking industry), financial investment business, and capital market, writing a number of papers related to Corporate Finance. She also has been in charge of evaluation and advisory services in accounting and finance related fields, such as in government agencies. Please refer to the following for specific major career and financial accounting-related activities.

•

Qualification and work experience

Begin Year		End Year		Experience		Note
1996		1998		Bachelor's in Chemical Engineering, Seoul National University		-
2000		2006		Ph.D. in Economics, University of Michigan		Qualified : Master's degree or higher in finance and accounting related field
2013		Present		Profess at College of Business, Chung-Ang University		Qualified : Worked for a university at least as an assistant professor or higher in accounting or finance for an aggregated period of at least five years

•

Other major work experience

•

2017-present : Member of Financial Developments Council, Financial Services Commission

•

2015-present : Member of Evaluation Committee for Public Funds, Ministry of Strategy and Finance

•

2016-present : Member of Financing & Planning Council, City government of Seoul

•

2018-present : Vice President at Financial Information Society of Korea

•

2016 : Vice President, MBA, Chung-Ang University

•

2015-2016 : Director, Korea Money and Finance Association

•

2015-2016 : Coordinator, Korea Securities Association

•

2012-2014 : Public capital redemption fund oversight council, Financial Services Commission

•

2012-2014 : Editorial Board of Asian Review of Financial Research

•

2006-2009 : Research Fellow, Korea Institute of Finance

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(2) Independence of Audit Committee

The Audit Committee is established within the Board of Directors and members of the audit committee are appointed at the shareholders' meeting. The Audit Committee is composed of four Outside Directors. Among the members, Eun-Jung Yeo is the financial expert.

The Audit Committee performs its duties and accounting work independently. If necessary, the Audit Committee and its members have the right to report on the company's business and investigate the company's financial status.

Outside Director

Tenure*

Consecutive term (number of term)

Reasons for appointment

Recommender

Roles in the Board

Transaction with the Company, Relationship with the largest shareholder and major shareholders

Dae-You Kim

March of 2021 ~ AGM of 2024

Consecutive term (1)

External Cooperation Expert

Board of Directors

Audit Committee (Chairperson) Corporate Governance Committee(Member), Outside director candidate recommendation committee

None

Tae-Yoon Sung

March of 2020 ~ AGM of 2022

-

Global affairs/ Economy Expert

Board of Directors

Evaluation and compensation committee (Chairperson) Audit Committee, Corporate sustainability management committee

None

Chung-Gu Kang

March of 2020 ~ AGM of 2023

-

ICT Expert

Board of Directors

Audit Committee Related-party transaction committee Outside director candidate recommendation committee

None

Eun-Jung Yeo

March of 2020 ~ AGM of 2023

-

Finance/Accounting Expert (Article 37 (2) 2 of the Enforcement Decree of the Commercial Act)

Board of Directors

Audit Committee Related-party transaction committee Outside director candidate recommendation committee

None

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(3) Major Activities of the Audit Committee

Order

Date

Agenda

Result of Discussion

Outside Director

Dae-You Kim

Tae-Yoon Sung

Chung-Gu Kang

Eun-Jung Yeo

(Attendance: 100%)

(Attendance: 100%)

(Attendance: 100%)

(Attendance: 100%)

1st

2021.02.04

Approval of audit and non-audit services for consolidated company for the Fiscal year 2021

Original proposal approved

for

for

for

for

2021.02.04

2021 Compliance Plan Report

Original proposal accepted

for

for

for

for

2nd

2021.02.25

Report on operational condition of the internal accounting management system for 2020

Original proposal accepted

for

for

for

for

Report on audit records for 2020 and audit plan for 2021

Original proposal accepted

for

for

for

for

3rd

2021.03.04

Report on final audit for fiscal year 2020

Original proposal accepted

for

for

for

for

Evaluation report on operational status of internal compliance device of the audit committee for 2020

Original proposal approved

for

for

for

for

4th

2021.03.18

Evaluation Opinion on the Operation Status of the Audit Committee's Internal Monitoring System

Original proposal approved

for

for

for

for

Research result report on agenda and documents of the annual general meeting of shareholders for the 39th term

Original proposal approved

for

for

for

for

Audit report of the annual general meeting of shareholders for the 39th term

Original proposal approved

for

for

for

for

Appointment of the Chairman of the Compliance Committee

Appointment of Chairperson

for

for

for

for

After the 39th General Meeting of Shareholders on March 29, 2020

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- Outside Director Dae-You Kim reappointed as Audit Committee member

Order

Date

Agenda

Result of Discussion

Outside Director

Dae-You Kim

Tae-Yoon Sung

Chung-Gu Kang

Eun-Jung Yeo

(Attendance: 100%)

(Attendance: 100%)

(Attendance: 100%)

(Attendance: 100%)

5th

2021.03.30

Appointment of the chairman of Audit committee

Chairman appointed

for

for

for

for

Delegation of authority for prior approval of non-audit service of external auditor

Original proposal approved

for

for

for

for

6th

2021.04.08

Report on US filing consolidated financial statements final audit for the Fiscal year 2020

Original proposal accepted

for

for

for

for

Report on the status of audit performance by external auditors in fiscal year 2020

Original proposal accepted

for

for

for

for

7th

2021.05.11

Report on financial statements(separate and consolidated) of the 1Q 2021

Original proposal accepted

for

for

for

for

8th

2021.08.10

Report on financial statements(separate and consolidated) of the 1H 2021

Original proposal accepted

for

for

for

for

Report on final audit for the first half of fiscal year 2021

Original proposal accepted

for

for

for

for

Report on audit result for the first half of fiscal year 2020 and audit plan for second half of fiscal year 2021

Original proposal accepted

for

for

for

for

Report on hiring results of management executives in the first half of 2021

Original proposal accepted

for

for

for

for

9th

2021.11.09

Report on financial statements(separate and consolidated) of the 3Q 2021

Original proposal accepted

for

for

for

for

Report on compliance performance in 2021

Original proposal accepted

for

for

for

for

Report on External auditor selection criteria of FY2022-FY2024

Original proposal approved

for

for

for

for

Approved audit service for consolidated companies(periodic designation) by external auditors in fiscal year 2021 and limit change of non-audit service of external auditor

Original proposal approved

for

for

for

for

Report on Compliance Officer Evaluation Results in fiscal year 2021

Evaluation grade determined

for

for

for

for

10th

2021.11.23

Report on External auditor selection of FY2022-FY2024

Original proposal approved

for

for

for

for

11th

2021.12.10

Approved Final selection of external auditors and approval of remuneration of FY2022-FY2024

Original proposal approved

for

for

for

for

Approved audit service for consolidated companies(periodic designation) by external auditors

Original proposal approved

for

for

for

for

(4) Education plan

Though auditors already have sufficient experience and knowledge, KT provides auditors with reports and education programs about related issues such as industry which KT belongs to, change in management environment, legal change and etc..

- Briefing on major change in management environment and compliance issue

- Seminars related with the Audit Committee

- Educational programs or conference

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(5) Audit Committee Education status

Date		Education provider		Attended audit member		Reasons for absence		Education contents
2021. 04. 22		Audit Committee Forum		Dae-You Kim Eun-Jung Yeo Chung-Gu Kang		due to personal schedule (Substitute for provision of educational materials)		- Covid 19 & ESG - ESG-related reporting & Role of the Audit Committe
2021. 06. 15		KT		All		-		Notes for Compliance with the Anti-Corruption Code of Conduct
2021. 07. 15		Audit Committee Forum		All		-		- Internal accounting management system experience and lessons learned - Changes in the internal accounting management system & Role of the Audit Committe
2021. 08. 12		KT		All		-		video training of Anti-corruption
2021.11.18		Audit Committee Forum		All		-		- Review of the feasibility of the audit committee's best practices and improvement plans - The role of investigation and reporting by the audit committee based on cases

Anti-corruption education(2021.6.15, 2021.8.12) is provided to all outside directors, including audit committee members

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(6) Supportive team for Audit Committee

Department		Number of Staffs		Job Position(years served)		Activity history
Ethics Management Office		47		Offce Head 1 (3 years of service) Director 2 (2.6 years of service on average) Team leader 8 (2.7 years of service on average) Team members 36 (3.7 years of service on average)		•  Group/company-wide ethical management promotion and organizational soundness and ethics diagnosis/audit •  Company-wide risk management and compliance status diagnosis and inspection •  Group/company-wide accounting audit and internal control diagnosis

(7) Matters on Compliance officer

•

Name : Byung-Sam Park

•

Qualification : Passed the 35th Korean judicial examination(1993), Lawyer

•

Education

•

Graduated School of Law, Korea University (1990)

•

Studied in Munich University, Germany (2007~2008)

•

Completed executive course in School of Law, Seoul University (2014)

•

Professional experience

•

Completed the 27th training of the Judicial Research and Training Institute (1998)

•

Judge of Daegu, Incheon, Seoul Central and Seoul Southern District Court (1998~2007)

•

Judge of Seoul High Court (2009~2010)

•

Delegated to Constitutional Court (2010~2012)

•

Judge in charge of warrant at Seoul Central District Court (2012~2013)

•

Vice president, Legal Affair Department of Legal Affair Center, KT Ethics Management Office / Legal Affair 1 Department, Legal Affairs office (2013~2015)

•

Head of KT Legal Affair Office, Corporate Planning Group (2017.12.~2018.11)

•

Head of KT Legal Affair Office (2018.11 ~ Present)

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•

Major Activities and results

Items		Date/Period		Contents		Result
Compliance education		On occasion		- Conducting compliance training by department by major position - Online education including anti-graft/foreign anti-corruption laws for all employees - Conducting compliance education for group companies and business partners		Nothing significant to report
Compliance Support		On occasion		- Enactment and enforcement of the 'Code of Conduct for Anti-Corruption' to comply with the Anti-Graft Act and FCPA ('21.3~) - Introduction of third-party risk assessment and compliance due diligence process ('12.12~) - Conducting legal review on the work performed by executives and employees and contracts - Establish a communication channel between compliance officers and employees by building a compliance platform (Regular access to compliance control related materials, support for voluntary compliance activities by department) - Establishment & support of group compliance system (Compliance management consulting for group companies, operation of group compliance management council)		Nothing significant to report
Compliance check		On occasion		- Support for setting major legal risk areas and establishing compliance inspection plans for each department - Report the plan and results of compliance activities to the audit committee - Report to the Board of Directors on the results of the inspection on compliance with the compliance control standards - Operation of the Compliance Committee (the highest decision-making body related to compliance control) and the Compliance Secretariat		Nothing significant to report

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•

Supportive team for the compliance officer

Department		Number of Staffs		Job Position(years served)		Activity history
Compliance Office		16		Team leader 3 (3.4years of service on average) Director 4 (1.7 year of service) Senior Manager 6 (4.4 years of service on average) Manager 1 (0.8 years of service on average) Lawyer 2 (6.1 years of service on average)		- Corporate compliance planning - Compliance trainings for employees - Inspection and evaluation on each compliance area - Facilitating compliance to be culturally embedded - Provides prior report on main issues - Supports compliance decision making entities(Audit committee, Compliance committee and others)

3. Matters on Shareholder's Exercise of Voting Rights

A.	Adoption of Cumulative Voting System

•

Automatic introduction of the cumulative voting system was implemented following the completion of the privatization process in 2002.

•

Where a general meeting of shareholders of a company is convened to appoint two or more directors, shareholders who hold no less than three percent of the total number of issued and outstanding shares excluding nonvoting shares may request the company to appoint directors based on cumulative voting, except as otherwise provided for by the articles of incorporation.

•

Each shareholder shall have the same number of voting rights per share as directors to be elected, with respect to the resolutions for election of directors, and the voting rights may be exercised based on cumulative voting for one or several candidates for directors

•

Where directors are to be elected by a vote, the directors shall be elected in order of candidates who obtain the most votes.

•

For further information, refer to Commercial Act Article 382-2(Cumulative Voting) and Article 542-7(Special cases concerning Cumulative Voting)

B.	Adoption of the Written Voting System or Electronic Voting

•

Adoption of the written voting system in accordance with the changes in the Articles of Incorporation at the 23rd General Meeting of Shareholders (March 11, 2005). The written voting system has been introduced and exercised to protect right of the minority shareholders. To make minor shareholders can exercise voting right on each agenda with the written vote measure, KT sends voting papers with the AGM notice and shareholders can exercise voting rights by marking for/against on voting paper and mailing back to the company before the meeting.

Article 22-2 (Exercise of Voting Rights by Writing)

(1) The Shareholders may exercise their voting rights by writing without attending the General Meetings of Shareholders in person.

(2) In case of Paragraph (1) above, KT shall send the notice of convening the General Meeting of Shareholders, together with written documents and reference materials necessary for the Shareholders to exercise their voting rights.

(3) The Shareholders desiring to exercise their voting rights by writing shall enter necessary matters in the written documents under paragraph (2) and submit them to KT by the date immediately preceding the date set for the Meeting.

•

To promote attendance for the shareholders' meeting, KT improved shareholders' convenience by adopting electronic voting through the BOD resolution on February 6, 2020 in accordance with the Commercial Act Article 368-4(Exercise of Voting Rights by Electronic Means). On the AGM notice, KT will notice that shareholders mayn exercise vote by electronic means. When shareholders exercise an absentee vote, he/she shall choose to do so either in writing or by electronic mean in accordance with the Commercial Act Article 368-4(4).

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4. Equity Investments

[As of December 31, 2021]			(Units: In Share, Won million)
Name of Company or Item		Beginning Balance			Increase (Decrease)			Ending Balance			Financial Facts (Latest fiscal year)
	Number of Shares			Equity Ratio			Book Value			Acquisition (Disposal)			Valuation			Number of Shares			Equity Ratio			Book Value			Total Assets			Net Profits
	Shares			Amounts
KT Powertel Co., Ltd.			7,771,418				44.8	%			37,419				-7,771,418			-37,419			-				0				0	%			0				119,694				3,809
KT Linkus Co., Ltd.			3,075,232				87.3	%			6,738				-				-				-				3,075,232				87.3	%			6,738				54,219				-4 ,653
KT Submarine Co., Ltd. (*1)			8,085,000				39.3	%			24,370				-				-				-				8,085,000				39.3	%			24,370				116,813				1,197
KT Sat Co., Ltd.			10,000,000				100.0	%			390,530				-				-				-				10,000,000				100.0	%			390,530				593,616				20,830
KT Telecop Co., Ltd.			5,765,911				86.8	%			134,308				-				-				-				5,765,911				86.8	%			134,308				363,224				3,985
KTCS Corporation (*1)			3,177,426				7.8	%			6,427				-				-				-				3,177,426				7.9	%			6,427				294,669				14,709
KTIS Corporation (*1)			10,196,190				30.8	%			30,633				-				-				-				10,196,190				31.4	%			30,633				369,672				25,253
KT Skylife Co., Ltd. (*1)			23,908,000				50.3	%			311,696				-				-				-				23,908,000				50.3	%			311,696				1,147,038				51,254
SkylifeTV Co., Ltd.			6,000,000				14.8	%			3,000				-6,000,000			-3,000				-				0				0	%			0				75,459				9,033
KT Estate Inc.			15,848,819				100.0	%			1,084,522				-				-				-				15,848,819				100.0	%			1,084,522				2,045,125				13,361
Next connect PFV			73,696,974				100.0	%			24,250				-				-				-				73,696,974				100.0	%			24,250				518,441				-6,519
GE premier CR-REITs			600,000				54.3	%			3,000				-600,000				-3,000				-				0				0	%			0				-				-
BC card Co., Ltd.			3,059,560				69.5	%			633,004				-				-				-				3,059,560				69.5	%			633,004				3,801,579				101,578
H&C Network			8,903				1.0	%			848				-				-				-				8,903				1.0	%			848				90,437				5,540
KT Sprorts Co., Ltd.			2,904,000				66.0	%			14,520				-				-				-				2,904,000				66.0	%			14,520				29,524				-2,039
Autopion Co., Ltd.			400,000				100.0	%			2,000				-400,000			-2,000			-				-				-				-				4,903				-2,459
KT Service Bukbu Co., Ltd.			476,094				67.3	%			7,092				-				-				-3,219			476,094				67.3	%			3,873				59,341				1,128

[As of December 31, 2021]			(Units: In Share, Won million)
Name of Company or Item		Beginning Balance			Increase (Decrease)			Ending Balance			Financial Facts (Latest fiscal year)
	Number of Shares			Equity Ratio			Book Value			Acquisition (Disposal)			Valuation			Number of Shares			Equity Ratio			Book Value			Total Assets			Net Profits
	Shares			Amounts
KT Service Nambu Co., Ltd.			531,127				76.4	%			10,160				-				-				-				531,127				76.4	%			10,160				62,513				1,430
KT MOS Bukbu Co., Ltd. (*1)			409,991				100.0	%			6,334				-				-				-				409,991				100.0	%			6,334				32,511				1,637
KT MOS Nambu Co., Ltd. (*1)			248,515				98.4	%			4,267				-				-				-				248,515				98.4	%			4,267				37,226				2,016
KT Engineering Co., Ltd. (KT ENGCORE)			1,000,000				59.8	%			28,000			400,000				28,000				-				1,400,000				59.8	%			28,000				185,850				-366
KTDS Co., Ltd. (*1)			2,400,000				95.5	%			19,616				-				-				-				2,400,000				95.5	%			19,616				244,168				18,191
KT GDH Co., Ltd. (KT SB Data service)			7,400,000				100.0	%			7,544				-				-				-				7,400,000				100.0	%			7,544				11,464				553
KT M mobile Co., Ltd.			40,000,000				100.0	%			102,237				-				-				-				40,000,000				100.0	%			102,237				144,175				5,918
KT Alpha Co., Ltd.			22,750,000				63.7	%			120,078				11,804,525			10,846			-				34,554,525				70.5	%			130,924				390,671				-8,692
KT M&S Co., Ltd.			47,400,000				100.0	%			26,764				-				-				-				47,400,000				100.0	%			26,764				241,377				3,496
KT Huimangjieum			300,000				100.0	%			1,500				300,000			1,500				-				600,000				78.1	%			3,000				6,399				622
KT Commerce, Inc.			266,000				19.0	%			1,782				-				-				-				266,000				19.0	%			1,782				130,889				4,158
KT M hows Co., Ltd.			760,000				76.0	%			6,794				-760,000			-6,794			-				0				0	%			0				-				-
Genie Music Corporation (*1)			20,904,514				36.2	%			37,417				-20,904,514			-37,417			-				0				0				% 0				287,986				14,288
Nasmedia Inc. (*1)			3,742,406				44.0	%			23,051				-				-				-				3,742,406				44.0	%			23,051				322,623				22,452
PlayD Co., Ltd.			3,008,989				23.5	%			20,000				-				-				-				3,008,989				23.5	%			20,000				141,799				-73
Storywiz Co., Ltd.			2,800,000			100.0	%			14,000			-2,800,000				-14,000				-				0				0	%			0				18,503				-4,047
KT Music Contents Investment Fund No.1			840,000,000				23.3	%			840				-840,000,000				-840				-				0				0	%			0				-				-
KT Music Contents Investment Fund No.2			4,000,000,000				26.7	%			4,000				-				-				-				4,000,000,000				26.7	%			4,000				14,985				-30
KT-Michigan Global Contents Fund			9,420				53.5	%			9,420				-				-9,420			-				9,420				53.5	%			0				3,552				10,032

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[As of December 31, 2021]			(Units: In Share, Won million)
Name of Company or Item		Beginning Balance			Increase (Decrease)			Ending Balance			Financial Facts (Latest fiscal year)
	Number of Shares			Equity Ratio			Book Value			Acquisition (Disposal)			Valuation			Number of Shares			Equity Ratio			Book Value			Total Assets			Net Profits
	Shares			Amounts
KT Investment Co., Ltd.			4,000,000				100.0	%			20,000				-				-				-				4,000,000				100.0	%			20,000				21,572				2,626
KT Strategic Investment Fund No. 2			173				90.9	%			10,245				-94				-7,864			-				79				90.9	%			2,381				6,434				-8,537
KT Strategic Investment Fund No. 3			45				86.7	%			4,507				-16				-1,560				-				29				86.7	%			2,947				5,989				735
KT Strategic Investment Fund No. 4			190				95.0	%			19,000				-				-				-				190				95.0	%			19,000				15,785				-688
KT Strategic Investment Fund No. 5			125				95.0	%			12,540				65				6,460				-				190				95.0	%			19,000				19,250				-381
Korea Telecom America, Inc.			4,500				100.0	%			2,376				-				-				-				4,500				100.0	%			2,376				4,498				712
Korea Telecom Japan Co., Ltd.			1,671				100.0	%			-				-				-				-				1,671				100.0	%			-				2,694				1
Korea Telecom China Co., Ltd.			-				100.0	%			2,160				-				-				-				4,500			100.0	%			2,376				4,884				201
KT Hong Kong Telecommunications Co., Ltd.			405,000				100.0	%			460				-				-				-				405,000				100.0	%			460				6,613				1,313
KT Dutch B.V.			222,098				100.0	%			32,359				-222,098			-32,359			-				0				0	%			0				-				-
KT Belgium			81,049,999				99.9	%			5,489				-81,049,999			-5,489			-				0				0	%			0				-				-
KBTO sp.z o.o.			546,240				97.4	%			-				-546,240				-				-				0				0	%			0				-				-
AOS Ltd.			1,530,000			51	%			1,876			0				2				-				1,530,000				51.0	%			1,878				11,539				823

(*1)	The number of subsidiaries' treasury stock is deducted from the total number of shares when calculating the equity ratio.

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VI. DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES

1. Directors

Changes since the preparation date

Inside and outside directors have been changed through the 31, December 2021 as follows.

Name

Date of Birth

Position

Years with the Company

Expiration of Term of Office

Inside Directors (1)

Hyeon-Mo Ku

January 13, 1964

Representative Director and Chief Executive Officer

12

2023 AGM

Jong-Ook Park

January 24, 1962

President, Head of Corporate Planning Group

7

2022 AGM

Kook-Hyun Kang

September 8, 1963

President, Head of Customer Business Group

11

2022 AGM

Outside Directors (1)

Gang-Cheol Lee

May 6, 1947

Outside Director, Paju Country Club Co., Ltd. Outside Director Candidate Recommendation Committee

3

2024 AGM

Dae-You Kim

July 21, 1951

Outside Director, DB Life Insurance Co., Ltd. Outside Director Candidate Recommendation Committee

3

2024 AGM

Hee-Yol Yu

January 12, 1947

Board Chairperson, Korea Carbon Capture & Sequestration R&D Center

2

2022 AGM

Tae-Yoon Sung

February 13, 1970

Professor, School of Economics, Yonsei University

2

2022 AGM

Hyun-Myung Pyo

October 21, 1958

Outside Director, Hankook Tire & Technology Co., Ltd.

1

2023 AGM

Chung-Gu Kang

December 12, 1962

Professor, School of Electrical Engineering, Korea University

1

2023 AGM

Chan-Hi Park

December 2, 1964

Professor, School of Business, Chung-Ang University

1

2022 AGM

Eun-Jung Yeo

February 15, 1973

Professor, School of Business, Chung-Ang University Outside Director Candidate Recommendation Committee

1

2023 AGM

2. Senior Management (As of December 31, 2021)

Name		Title and Responsibilities		Year of Birth
Kyunglim Yoon		Head of Group Transformation Division		1963
Byung-Sam Park		Senior Executive Vice President, Ethics Office		1966
Chang-seok Seo		Senior Executive Vice President, Network Group		1967
Jae-Ho Song		Senior Executive Vice President, AI/DX Convergence Business Group		1966
Soo-Jung Shin		Senior Executive Vice President, Enterprise Business Group		1965
Hyun-Yok Sheen		Senior Executive Vice President, Corporate Management Group		1968
Sang-Don Ahn		Senior Executive Vice President, Legal Affairs Office		1962
Jung-min Woo		Executive Vice President, IT Planning Office		1964
Dong-Sik Yun		Executive Vice President, Cloud/IDC Business Office		1963
Bong-Gyun Kim		Executive Vice President, Busan/Gyeongnam Regional Headquarter		1972

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Young-woo Kim		Executive Vice President, Group Management Office		1967
Young-Jin Kim		Executive Vice President, Financial Management Office		1967
Lee-han Kim		Executive Vice President, Institute of Convergence Technology		1966
Chae-hee Kim		Executive Vice President, Strategic Planning Office		1974
Hoon-bae Kim		Executive Vice President, Media Business Unit		1963
Chi-Yong Ahn		Executive Vice President, Northern Seoul/Gangwon Regional Headquarter		1966
Chang-yong Ahn		Executive Vice President, Daegu-Gyeongbuk Regional Headquarter		1966
Chi-yong Ahn		Executive Vice President, Northern Seoul/Gangwon Regional Headquarter		1966
Yul-Mo Yang		Executive Vice President, Public Relations Office, Public Relations Office		1967
Kyung-Hwa Ok		Executive Vice President, IT Strategy Unit		1968
Gong-hwan Lee		Executive Vice President, Director of Policy Cooperation		1966
Seon-joo Lee		Executive Vice President, Group HR Devlopment Office Training Course		1969
Changho Lee		Executive Vice President, CEO Support Unit		1972
Hyeon-Seuk Lee		Executive Vice President, Chungnam/Chungbuk Regional Headquarter		1966
Jong-Taek Lim		Executive Vice President, External Cooperation Office		1964
Sang-Kwi Chang		Executive Vice President, Legal Affairs Department 1		1968
Jung-Soo Jung		Executive Vice President, Southern Seoul/Western Seoul Regional Headquarter		1966
Hoon Jo		Executive Vice President, SCM Strategy Office		1966
Jung-Yong Ji		Executive Vice President, Jeonnam/Jeonbuk Regional Headquarter		1968
Chanki Choi		Executive Vice President, Sales Operating Business Unit		1966
Jun Go		Senior Vice President, Head of Legal Office Legal P-TF		1971
Gang-Bon Koo		Senior Vice President, Customer Business Unit		1972
Jaehyung Koo		Senior Vice President, Network Research Technology Support Unit		1972
Oh-ryung Kwon		Senior Vice President, Group Affiliate Manager		1969
Hye-Jin Kwon		Senior Vice President, Network Strategy Department		1971
Hee-geun Kwon		Head of Seoul Metropolitan Area Wholesale Sales Department		1970
Kwang-dong Kim		Senior Vice President, Policy Cooperation Office		1970
Moo-Seong Kim		Senior Vice President, ESG Management & Implementation office		1972
Byung-Kyun Kim		Senior Vice President, Device Business Unit		1968
Bong-Ki Kim		Senior Vice President, Director of Convergence Laboratory		1968
Sang-Kyoon Kim		Senior Vice President, Management Support Office		1970
Seong-ll Kim		Senior Vice President, Chungnam/Chungbuk Network O&M Headquarter		1966
Seung-Woon Kim		Senior Vice President, Infra Service Unit		1968
Young-sul Kim		Senior Vice President, External Cooperation P-TF		1967
Young-sik Kim		Senior Vice President, Head of DX Platform Business Unit		1972
Young-In Kim		Senior Vice President, Network Strategy Unit		1968
Jae-Kwon Kim		Senior Vice President, Biz Customer Business Unit		1968
Jun-Ho Kim		Senior Vice President, Public/Finance Customer Business Unit		1965
Pyeong Ryu		Senior Vice President, Jeonnam/Jeonbuk Enterprise Customer Sales Headquarter		1966
Sang-ryong Moon		Senior Vice President, IT Consulting Unit		1967
Sung-Uk Moon		Senior Vice President, Global Business Unit		1972
Young-Il Moon		Senior Vice President, Data & Information Security Unit		1966
Hye-Byung Min		Senior Vice President, Enterprise Service DX Unit		1969
Soon-ha Park		Senior Vice President, Head of Business Support Unit		1965
Yong-Man Park		Senior Vice President, Jeonnam/Jeonbuk Customer Sales Headquarter		1965
Jeong-Jun Park		Senior Vice President, Enterprise Customer Business Unit		1967
Jeong-Ho Park		Senior Vice President, Customer DX Business Unit		1970
Jong-Ho Park		Senior Vice President, Network Control Unit		1964
Hyo-Il Park		Senior Vice President, Customer Experience Innovation Unit		1970
Soon-min Bae		Senior Vice President, AI2XL Laboratory		1980
Seung-Yun Paik		Senior Vice President, Strategic Investment P-TF		1970
Ki-Hong Seo		Senior Vice President, Daegu/Gyeongbuk Enterprise Customer Sales Headquarter		1967
Young-Soo Seo		Senior Vice President, Network Research Technology Support Unit		1968

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Jeong-Hyun Seo		Senior Vice President, Legal Affairs Department 3		1971
Won-je Seong		Senior Vice President, Southern Seoul/Western Seoul Enterprise Customer Sales Headquarter		1972
Hoon-Joo Shin		Senior Vice President, Corporate Image Strategy P-TF		1971
Jin-Ho Yang		Senior Vice President, Legal Affairs Department 2		1973
Jae-Min Eom		Senior Vice President, Busan/Gyeongnam Customer Sales Headquarter		1965
Hun-Yong Oh		Senior Vice President, Enterprise Business Consulting & Implementation Unit 2		1966
Heung-Jae Won		Senior Vice President, Western Seoul Customer Sales Headquarter		1967
Young-Kyu Yoo		Senior Vice President, Enterprise Strategic Planning Headquarter		1971
Chang-Kyu Yoo		Senior Vice President, Northern Seoul/Gangwon Enterprise Customer Sales Headquarter		1966
Kyung Mo Yoon		Senior Vice President, SCM Strategy Unit		1969
Jinheon Yoon		Senior Vice President, Media R&D P-TF		1968
Mi-Hee Lee		Senior Vice President, CEO Level Consulting Unit		1970
Sang-Il Lee		Senior Vice President, Northern Seoul/Gangwon Network O&M Headquarter		1964
Sang-ho Lee		Senior Vice President, AI Robot Business Unit		1975
Young-Jun Lee		Senior Vice President, Chungnam/Chungbuk Enterprise Customer Sales Headquarter		1968
Young-Jin Lee		Senior Vice President, Group HR Unit		1972
Yong-Gyoo Lee		Senior Vice President, Busan/Gyeongnam Network O&M Headquarter		1965
Jong-Sik Lee		Senior Vice President, Infra DX Laboratory		1972
Seung-Hyouk Lim		Senior Vice President, Digital Bio Health Business Unit		1970
Jang-Mi Lim		Senior Vice President, Industry Biz 2 P-TF		1966
Gil-Sung Jeong		Senior Vice President, Management Strategic Unit		1974
Jae-Wook Jeong		Senior Vice President, CEO Office team 1		1972
Seong-Eun Cho		Senior Vice President, S/W Development Unit		1971
Young-Sim Jin		Senior Vice President, Group HR Development Academy		1972
Kang-Rim Choi		Senior Vice President, AI Mobility Business Unit		1974
Sung-Wook Choi		Senior Vice President, Daegu/Gyeongbuk Customer Sales Headquarter		1965
Si-Hwan Choi		Senior Vice President, Eastern Seoul Customer Sales Headquarter		1967
Joon-Ki Choi		Senior Vice President, AI/BigData Business Unit		1974
Ja-Kyung Hahn		Senior Vice President, Industry Biz 1 P-TF		1971
Suk-Zoon Huh		Senior Vice President, Institute of Economic & Business Research		1967
Tae-Zoon Huh		Senior Vice President, Enterprise Business Consulting & Implementation Unit 1		1970
Sung-Pil Hong		Senior Vice President, Group Real Estate Department		1965
Tae-Hyun Hwang		Senior Vice President, Cloud/DX Strategy Department		1971

3. Current Status of Employees

(Unit: Persons, Years, Won million)

Type

Number of Employees

Average Years in Continuous Service

Total Payroll

Average Payroll per Person

Non-affiliated workers

General

Other

Total

Total

21,087

672

21,759

21.7

1,991,370

95

165

•

Number of employees as of December 31, 2021.

•

Average years in continuous services was calculated based on workers excluding fixed-term workers.

•

Total Payroll and Average payroll per person are the amount of earned income under the income tax law of regular and unregistered executives.

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4. Remuneration to Executive Officers

A.	Total Remuneration paid to Directors (including Outside Directors) and Members of the Audit Committee (Auditors)

		(Unit: Won million)
Category		Total Amount Paid			Amount Approved by the General Meeting of Shareholders			Average Amount Paid per Person
3 Inside Directors			4,979				5,800				1,660
8 Outside Directors			826					104

•

The total amount paid and the average amount paid per person includes severance pay for former CEO and former inside directors following the Severance Pay Regulation for Executives.

B. Standards for payment of remuneration for directors and auditors

(1) Standards for payment of remuneration for CEO and Inside Directors

(a) Earned income

Earned income consists of salary(base and position pay), bonus(short-term and long-term bonus), and other income.

•

Base pay : The amount determined by the board of directors' resolution and the contract for delegation of management officers shall be paid 1/12 per month on the date of remuneration payment by the company.

•

Position pay : The amount determined by the board's resolution and the contract for delegation of executive officers according to the importance of the position he performs shall be paid 1/12 per month on the date of remuneration payment by the company.

•

Short-term bonus : Short-term bonuses are paid after the resolution of the board of directors, reflecting the results of the evaluation of the annual target. The measurement index consisting of sales, operating profit, etc. and the non-measuring index for the major matters of the year are collected and paid within the range of 0-180% of the base salary.

•

Long-term bonus : It can be paid up to 0-180% of the base salary according to the management contract and the delegated contract, and it is paid in shares with limited transfer. (Payment based on TSR and Group EBITDA achievement)

•

The long-term performance bonus in 2020 has been changed to be paid within the range of 0~140% of the base salary.

•

Other income : Payment of medical examination expenses, medical expenses, etc. in accordance with the standards for executive benefits.

(b) Retirement income

Retirement income is determined by the average monthly wage and number of years of service. The CEO shall pay five times the average monthly wage multiplied by the number of years of service, and the Inside director shall pay three times the amount.

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(2). Standards for payment of remuneration for Outside Directors

•

The monthly fixed amount : It shall be paid on the company's remuneration payment date at the same level every month as determined by the board of directors.

•

Attendance expenses : Attendance expenses are calculated based on the amount determined by the board of directors' resolution. This will be settled according to the number of meetings of the board of directors and committees and paid on the next month's remuneration payment date.

•

Stock compensation : In accordance with the resolution of the board of directors, stock compensation shall be paid in the following year with a transfer restriction shares of 20 million won per person.

•

Other income : Payment of medical examination expenses, etc. in accordance with the standards for supporting outside directors

C. Executives and employees with a remuneration of 500 million won or more

		(Unit: Won million)
Name		Position		Total Amount Paid
Yoon Yong Park		Former President			2,020
Hyeon-Mo Ku		Chief Executive Officer			1,522
Jong-wook Park		President			985
Kook-hyun Kang		President			806

•

The total amount paid includes severance pay for former CEO and former inside directors following the Severance Pay Regulation for Executives.

Name		Type		Total Amount Paid (KRW million)		Note
Yoon Yong Park		Earned income		Salary		74		Based on the resolution of the board of directors, the total base pay was 294 million won
	Incentives		399		The incentives has been decided by evaluating revenue and operating profits of the previous year as the quantitative indicators and considering the business competitiveness and the status as the qualitative indicators comprehensively. The short-term incentives can be 0~140% of the base pay and Long-term performance pay is a comprehensive evaluation of total shareholder return, group EBITDA achievement, and group sales achievement can be paid within the range of 0~95% of the base pay. In accordance with the resolution of the board of directors, the performance bonus of the previous year was comprehensively evaluated and bonus of KRW 399 million was paid. * Executive Director at the time of 2020
	Stock option		-		-
	Fringe benefits		7		Including medical expenses, health checkup costs
	Retirement income		1,540		In accordance with the executive retirement payment, 3 months prior to the date on which the reason for resignation occurred regulations approved at the general meeting of shareholders It was calculated by reflecting the length of service (13.3 years) in the base salary (the sum of the base pay and the position pay, 115.8 million won).
	Others		-		-

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Name		Type		Total Amount Paid (KRW million)		Note
Hyeon-Mo Ku		Earned income		Salary		556		Based on the resolution of the board of directors, the total base pay was 356 million won and the total position pay was 200 million won.
	Incentives		946		Based on the resolution of the board of directors, the incentives has been decided by evaluating the management results comprehensively. The short- term incentives can be 0~180% of the base pay and long-term performance pay is a comprehensive evaluation of total shareholder return, group EBITDA achievement, and group sales achievement can be paid within the range of 0~140% of the base pay. - In accordance with the resolution of the board of directors, the performance of the previous year was comprehensively evaluated and a performance bonus of KRW 946 million was paid. * KRW 946 million paid as a performance bonus includes the amount calculated by the stock price at the time of the number of stocks paid to individuals as long-term incentives
	Stock option		-		-
				Fringe benefits		20		Including medical expenses, health checkup costs
		Retirement income		-		-
		Others		-		-
Name		Type		Total Amount Paid (KRW million)		Note
Jong-wook Park		Earned income		Salary		454		Based on the resolution of the board of directors, the total base pay was 294 million won and the total position pay was 160 million won.
	Incentives		509		Based on the resolution of the board of directors, the incentives has been decided by evaluating the management results comprehensively. The short- term incentives can be 0~140% of the base pay and the long-term incentives can be 0~95% of the base pay. - In accordance with the resolution of the board of directors, the performance of the previous year was comprehensively evaluated and a performance bonus of KRW 509 million was paid. * KRW 509 million paid as a performance bonus includes the amount calculated by the stock price at the time of the number of shares paid to an individual as a long-term performance bonus
	Stock option		-		-
				Fringe benefits		22		Including medical expenses, health checkup costs
		Retirement income		-		-
		Others		-		-

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Name		Type		Total Amount Paid (KRW million)		Note
Kook-hyun Kang		Earned income		Salary		451		Based on the resolution of the board of directors, the total base pay was 294 million won and the total position pay was 160 million won.
	Incentives		345		Based on the resolution of the board of directors, the incentives has been decided by evaluating the management results comprehensively. The short-term incentives can be 0~140% of the base pay and the long-term incentives can be 0~95% of the base pay. - In accordance with the resolution of the board of directors, the performance of the previous year was comprehensively evaluated and a performance bonus of KRW 345 million was paid. * Executives at the time of 2020 * KRW 345 million paid as a performance bonus includes the amount calculated by the stock price at the time of the number of shares paid to an individual as a long-term performance bonus
	Stock option		-		-
				Fringe benefits		10		Including medical expenses, health checkup costs
		Retirement income		-		-
		Others		-		-

D. Grant and Exercise of Stock Option

* Not applicable as of December 31, 2021.

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