EX-99.11 2 exhibit1.htm EX-99.11 Exhibit  EX-99.11

Changes in Revenues or Income

                                 
Income Statement Data   Years Ended December 31,   Changes   Changes(%)
    2005   2004                
Revenues
     11,877,272       11,850,819       26,453       0.2  
 
                                
Operating Income
     1,667,811       2,127,119       -459,308       -21.6  
 
                                
Ordinary Income
     1,334,571       1,799,525       -464,954       -25.8  
 
                                
Net Income
     997,320       1,255,522       -258,202       -20.6  
 
                                
Balance Sheet Data   As of December 31,
     
    2005
   2004
     
    
Total Assets   17,912,897
   20,114,036
     
    
Total Liabilities   9,903,903
   12,667,523
     
    
Capital Stock   1,560,998
   1,560,998
     
    
Total Stockholders’ Equity   8,008,993
   7,446,513
     
    
Capital Stock / Total Stockholders’ Equity (%)  
                       
     
    
     
l
l
  Unit: KRW million except for percentages
Reasons for the decrease in revenue or income:

Fines imposed by the Korean Fair Trade Commission, and increased marketing and labor cost.

Dividends

                 
    Years Ended December 31
    2005   2004
Dividends declared per share
   KRW 3,000
   KRW 3,000
 
                
- Regular (Year-end) Dividends
   KRW 2,000
   KRW 2,000
 
                
- Interim / quarterly dividends
   KRW 1,000
   KRW 1,000
 
                
Dividends yield ratio
     7.09       6.93  
 
                
Total dividends declared
   KRW636,872 million
   KRW632,277 million
 
                
Net Income
   KRW 997,320million
   KRW1,255,522 million
 
                
Record date   December 31, 2005
     
Dividends payment date   March 31, 2006
     
Date of the general shareholders’ meeting   March 10, 2006
     
Date of the board resolution   January 26, 2006
     
Above figures are subject to changes as a result of an audit by the independent auditors or the general shareholders’ meeting.
 

Exchange Price Adjustments

                                                         
 
                                                   Exchange price
1. details of
   Series No. of
                           Exchange price before
           after adjustments
adjustments
   bonds`   Type of bonds
           adjustments (KRW)           (KRW)
             
    
        
    6   Exchangeable Bonds
           56,507           55,773
             
    
        
2. changes in the number of
                                                        
shares available
   Series No. of   Total face value of
   Number of shares available for
   Number of shares available for exchange
for exchange
   bonds`   exchange bonds           exchange before adjustments
   after adjustments        
             
    
    
    6   11,245,000 USD
   257,150           260,532
             
    
    
    Exchange price after adjustment = PX (M-sp)/M
                                        
    P: the Exchange Price before adjustments, KRW 56,507
                                        
4. formula used for   M: the average closing sale price per share for the 10 trading days immediately preceding the date of the special dividends announcement
        
adjustments   sp : the amount of the Special Dividends payable per Share, KRW 507
                                
     
                                
3. reasons for
                                                        
adjustments   EB covenant, which requires anadjustment in the event ofthe dividends payment increase by more than20% compared to the previous year, was triggered.
     
5. effective date of the exchange price adjustments
   January 1, 2006
                                                
 
                                                        
6. date of the board resolution
   January 26, 2006
                                                
- attendance of outside directors
   Present(no.)
           7   Absent(no.)
           1        
 
                                                        
    1. The exchange price adjustments apply to Overseas Exchangeable Bonds
                                
    2. The adjustments Effective Date is January 1, 2006 and the adjusted price will be retroactively applied.
                
8. others   3. The exchange price adjustments are subject to changes as a result of an audit by the independent auditors or the general shareholders’ meeting
     

Acquisition of Affiliated Entity’s Shares
1. Details of the affiliated entity

a. name of the entity : KTF

b. name of the representative: Young Joo Cho

c. relationship with KT: Affiliated company

d. paid-in capital (KRW): 1,044,181,455,000

e. total number of outstanding shares: 201,208,091

f. business area: telecommunication services, internet business

2. Details of the acquisition

a. type of securities acquired: equity

b. amount paid (KRW): 356,700,000,000

c. number of shares acquired: 14,860,000

d. number of shares owned by KT after the acquisition: 104,500,000

e. percentage of KT’s ownership interest after the acquisition (%): 51.9

f. method of the acquisition: purchase on exchange and on the over-the-counter market

3. Purposes of the acquisition

a. enhancing corporate value by increasing interest in KTF

b. preparing for changes in the telecommunications market, such as the convergence of the wired and wireless market

4. Total amount acquired (KRW): 356,700,000,000

a. capital at the end of the previous fiscal year (KRW): 7,446,513,000,000

b. ratio to capital (%): 4.8

5. Date of the board resolution: January 26, 2006