6-K 1 d6k.htm FORM 6-K

Form 6-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 OF

THE SECURITIES EXCHANGE ACT OF 1934

For the month of April 2007

Commission File Number 1-14926

KT Corporation

(Translation of registrant’s name into English)

206 Jungja-dong

Bundang-gu, Sungnam

Kyunggi-do

463-711

Korea

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

Form 20-F      Ö            Form 40-F              

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):             

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):             

Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes                      No      Ö

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-             

        April 27, 2007

1st Quarter 2007

Preliminary Earnings Commentary

(KRX : 030200 / NYSE : KTC)

Disclaimer

This material contains estimated information of unaudited non-consolidated preliminary financial and operating data of KT Corporation (“KT” or “the company”) as of March 31, 2007 and forward-looking statements with respect to the financial condition, results of operations and business of KT. Statements that are not historical facts, including statements about KT’s beliefs and expectations, are forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other future results or performance expressed or implied by such forward-looking statements. Such forward-looking statements were based on current plans, estimates and perfections of KT and the political and economic environment in which KT will operate in the future and therefore you should not place undue reliance on them.

Therefore, KT does not make any representation or warranty, expressed or implied, as to the accuracy or completeness of the unaudited financial and operating data contained in this material and such information maybe materially different from the actual results or performance of KT. KT speaks only as of the date it is made, and KT undertakes no obligation to update publicly any of them in light of new information or future events.

The financial and operating data contained in this presentation have been rounded. Since affiliated companies have not finished accounting, estimated figures were used for the equity method gains/losses.

KT’s non-consolidated financial statements and report as of March 31, 2007 will be filed with the Financial Supervisory Service(FSS) and the Korea Exchange(KRX) on May 15, 2007.

If you have any questions in connection with the preliminary earnings, please contact Investor Relations Department of KT Corp.

Tel : 82-31-727-0950~59

Fax : 82-31-727-0949

E-mail: shinbo@kt.co.kr

1

1. Financial Highlights

A. Summary of Income Statement

(KRW bn)		2007 1Q			2006 4Q			QoQ					2006 1Q			YoY
								Amount		D%						Amount		D%
Operating revenue		2,953.8			2,919.1			34.7		1.2	%		2,897.6			56.2		1.9	%
¨ Internet access		524.7			528.6			–3.9		–0.7	%		544.4			–19.7		–3.6	%
¨ Internet application		91.3			68.9			22.3		32.4	%		58.9			32.4		55.0	%
¨ Data		406.9			397.5			9.4		2.4	%		400.5			6.5		1.6	%
¨ Telephone		1,042.5			1,018.8			23.6		2.3	%		1,058.5			–16.0		–1.5	%
¨ LM		411.9			425.1			–13.1		–3.1	%		438.4			–26.4		–6.0	%
¨ Wireless		377.2			341.5			35.6		10.4	%		326.5			50.7		15.5	%
¨ Real estate		45.9			52.0			–6.1		–11.7	%		26.0			19.9		76.3	%
¨ Others		53.4			86.6			–33.2		–38.4	%		44.5			8.9		20.1	%
¡ SI		44.6			76.6			–32.1		–41.8	%		32.5			12.1		37.3	%
Operating expenses		2,427.0			2,853.1			–426.1		–14.9	%		2,232.9			194.1		8.7	%
¨ Labor		653.2			748.3			–95.1		–12.7	%		586.8			66.4		11.3	%
¨ Commissions		153.0			182.1			–29.1		–16.0	%		151.3			1.6		1.1	%
¨ Sales commission		141.0			183.3			–42.3		–23.1	%		107.2			33.8		31.6	%
¨ Sales promotion		50.2			59.5			–9.3		–15.7	%		20.4			29.8		146.1	%
¨ Advertising		20.6			30.4			–9.9		–32.5	%		11.5			9.1		79.4	%
¨ Provision for doubtful accounts		20.2			–14.1			34.4		N/A			18.4			1.8		9.9	%
¨ Depreciation		477.3			630.7			–153.3		–24.3	%		487.8			–10.5		–2.1	%
¨ Repairs & maintenance		25.6			82.0			–56.4		–68.8	%		78.4			–52.9		–67.4	%
¨ Cost of goods sold		182.3			146.4			35.9		24.5	%		127.0			55.4		43.6	%
¨ Cost of service provided		442.9			492.5			–49.6		–10.1	%		429.2			13.7		3.2	%
¨ R&D		37.6			69.3			–31.6		–45.7	%		42.6			–5.0		–11.7	%
¨ Others		223.2			242.8			–19.6		–8.1	%		172.4			50.8		29.5	%
Operating income		526.8			66.0			460.8		698.5	%		664.7			–137.9		–20.7	%
Operating margin		17.8	%		2.3	%		15.6% P					22.9	%		–5.1% P
EBITDA(1)		1,004.1			696.6			307.5		44.1	%		1,152.5			–148.4		–12.9	%
EBITDA margin		34.0	%		23.9	%		10.1% P					39.8	%		–5.8% P
Non-operating income		160.0			233.2			–73.2		–31.4	%		168.0			–8.0		–4.8	%
Non-operating expenses		160.4			141.9			18.5		13.1	%		262.6			–102.2		–38.9	%
Ordinary income		526.4			157.3			369.1		234.7	%		570.1			–43.7		–7.7	%
Income tax expenses		148.7			–6.7			155.5		N/A			160.8			–12.1		–7.5	%
Effective tax rate		28.3	%		–4.3	%		N/A					28.2	%		0.1% P
Net income		377.6			164.0			213.6		130.2	%		409.2			–31.6		–7.7	%
EPS(2) (won)		1,815			799			1,016		127.1	%		1,921			–106		–5.5	%

(1) EBITDA = Operating income + depreciation

(2) EPS = Net income ÷ No. of shares outstanding

¡ Revenue

– Despite fall in broadband, telephone, and LM revenues, increase in PCS resale and solution sales resulted in YoY increase of KRW 56.2 bn, posting KRW 2,953.8 bn in sales for 1Q

¡ Operating Expense

– Increase in provision for retirement, COGS, as well as higher marketing cost from heightened competition led to YoY decline of KRW 137.9 bn and KRW 31.6 bn for operating income and net income, respectively

2

B. Summary of Balance Sheet

(KRW bn)		2007 1Q			2006 4Q			QoQ					2006 1Q			YoY
								Amount		D%						Amount		D%
Total assets		17,746.1			17,962.3			–216.2		–1.2	%		17,620.5			125.5		0.7	%
¨ Current assets		3,311.0			3,239.2			71.9		2.2	%		3,349.2			–38.2		–1.1	%
¡ Quick assets		3,205.3			3,146.2			59.1		1.9	%		3,233.3			–28.0		–0.9	%
- Cash & Cash equivalents		1,358.8			1,157.3			201.4		17.4	%		1,096.7			262.0		23.9	%
¡ Inventories		105.7			93.0			12.8		13.7	%		116.0			–10.2		–8.8	%
¨ Non-current assets		14,435.0			14,723.1			–288.1		–2.0	%		14,271.3			163.7		1.1	%
¡ Investments and other non-current assets		3,776.5			3,854.3			–77.8		–2.0	%		3,684.0			92.5		2.5	%
- KTF shares		2,700.0			2,765.1			–65.1		–2.4	%		2,552.4			147.6		5.8	%
- Long-term loans		154.5			187.6			–33.1		–17.6	%		279.6			–125.1		–44.7	%
- Others		922.0			901.6			20.4		2.3	%		852.0			69.9		8.2	%
¡ Tangible assets		10,205.8			10,398.1			–192.3		–1.8	%		10,166.1			39.7		0.4	%
¡ Intangible assets		452.8			470.8			–18.0		–3.8	%		421.2			31.6		7.5	%
Total liabilities		9,236.7			9,413.3			–176.5		–1.9	%		9,586.0			–349.3		–3.6	%
¨ Current liabilities		3,289.3			3,270.2			19.1		0.6	%		2,786.9			502.4		18.0	%
¡ Interest-bearing debts		912.2			709.7			202.5		28.5	%		634.8			277.4		43.7	%
¡ Accounts payable		605.1			657.4			–52.3		–7.9	%		607.4			–2.2		–0.4	%
¡ Others		1,772.0			1,903.2			–131.2		–6.9	%		1,544.7			227.3		14.7	%
¨ Long-term liabilities		5,947.4			6,143.0			–195.6		–3.2	%		6,799.1			–851.7		–12.5	%
¡ Interest-bearing debts		4,537.1			4,729.4			–192.2		–4.1	%		5,303.7			–766.6		–14.5	%
¡ Installation deposit		893.9			907.5			–13.6		–1.5	%		945.9			–52.0		–5.5	%
¡ Others		516.4			506.1			10.3		2.0	%		549.4			–33.0		–6.0	%
Total shareholders’ equity		8,509.4			8,549.1			–39.7		–0.5	%		8,034.6			474.8		5.9	%
¨ Common stock		1,561.0			1,561.0			0.0		0.0	%		1,561.0			0.0		0.0	%
¨ Capital surplus		1,440.9			1,440.9			0.0		0.0	%		1,440.3			0.7		0.0	%
¨ Retained earnings		9,315.4			9,353.9			–38.6		–0.4	%		8,709.9			605.5		7.0	%
¨ Capital adjustments		–3,816.7			–3,817.7			1.0		N/A			–3,831.8			15.1		N/A
¡ Treasury stock		–3,825.7			–3,826.6			0.9		N/A			–3,840.5			14.8		N/A
¡ Gain(loss) on valuation of investment securities		15.6			13.2			2.4		18.1	%		48.4			–32.7		–67.7	%
¡ Others		–6.6			–4.4			–2.2		N/A			–39.7			33.1		N/A
¨ Others		8.8			11.0			–2.2		–20.0	%		155.3			–146.5		–94.3	%
Total interest-bearing debt		5,449.3			5,439.1			10.2		0.2	%		5,938.6			–489.3		–8.2	%
Net debt		4,090.5			4,281.7			–191.2		–4.5	%		4,841.8			–751.3		–15.5	%
Net debt / Total shareholders’ equity		48.1	%		50.1	%		–2.0% P					60.3	%		–12.2% P

¡ Assets

– QoQ decline in tangible assets due to lower CAPEX than depreciation cost

¡ Liabilities

– Decrease in QoQ and YoY liabilities from decline in other current liabilities

¡ Shareholders’ Equity

– Dividend payout of KRW 416 bn over quarterly net income of KRW 378 bn resulted in a QoQ decline in shareholders’ equity

3

2. Operating Results

A. Internet Revenue

(KRW bn)		2007 1Q		2006 4Q		QoQ					2006 1Q		YoY
						Amount		D%					Amount		D%
Internet access		524.7		528.6		–3.9		–0.7	%		544.4		–19.7		–3.6	%
¨ Broadband		525.3		532.0		–6.7		–1.3	%		548.0		–22.8		–4.2	%
¡ Megapass		513.6		518.4		–4.8		–0.9	%		532.6		–19.0		–3.6	%
¡ Nespot		11.7		13.6		–1.9		–14.2	%		15.4		–3.7		–24.3	%
¨ Others		–0.6		–3.4		2.8		N/A			–3.6		3.0		N/A
Internet application		91.3		68.9		22.3		32.4	%		58.9		32.4		55.0	%
¨ IDC		38.2		30.6		7.6		24.7	%		22.9		15.3		66.7	%
¨ Bizmeka		26.4		16.1		10.3		64.1	%		16.6		9.8		59.3	%
¨ Others		26.6		22.2		4.4		19.8	%		19.4		7.3		37.5	%

¡ Decrease in Megapass revenue from modem rental exemption for customers exceeding 3 years subscription, and long-term customer discounts

¡ QoQ and YoY decline in Nespot revenue due to decreased service revenue and handset sales, resulting from decline in subscribers

¡ Rise in QoQ and YoY Internet application revenue from increased Bizmeka demand, and increased IDC revenue from rise in server sales

B. Data Revenue

(KRW bn)		2007 1Q		2006 4Q		QoQ					2006 1Q		YoY
						Amount		D%					Amount		D%
Data		406.9		397.5		9.4		2.4	%		400.5		6.5		1.6	%
¨ Leased line		275.8		269.4		6.4		2.4	%		268.2		7.6		2.8	%
¡ Local		118.0		113.6		4.4		3.9	%		110.8		7.2		6.5	%
¡ Domestic long distance		84.0		82.0		2.0		2.5	%		85.4		–1.4		–1.7	%
¡ International long distance		4.2		6.1		–1.9		–30.7	%		3.7		0.5		13.8	%
¡ Broadcasting & others		69.6		67.7		1.9		2.8	%		68.3		1.3		1.9	%
¨ Data leased line		32.5		31.5		1.0		3.2	%		33.6		–1.0		–3.1	%
¡ Packet data		2.1		2.2		0.0		–2.3	%		2.3		–0.1		–6.5	%
¡ National network ATM		17.8		16.9		0.9		5.1	%		21.2		–3.4		–16.2	%
¡ VPN		12.6		12.4		0.2		1.6	%		10.1		2.5		25.2	%
¨ Kornet		65.6		62.9		2.7		4.3	%		64.1		1.4		2.2	%
¨ Satellite		27.2		27.4		–0.2		–0.7	%		27.5		–0.2		–0.8	%
¨ Others		5.8		6.3		–0.5		–8.6	%		7.1		–1.3		–18.7	%

¡ Rise in QoQ and YoY data revenue from increased demand for Local/DLD leased lines, as well as increase in Kornet sales

* Effective January, 2007, Kornet and Satellite sales are classified under Data Revenue

4

C. Telephone Revenue

(KRW bn)		2007 1Q		2006 4Q		QoQ					2006 1Q		YoY
						Amount		D%					Amount		D%
Telephone revenue		1,042.5		1,018.8		23.6		2.3	%		1,058.5		–16.0		–1.5	%
¨ Subscriber connection		349.4		363.0		–13.6		–3.7	%		347.0		2.4		0.7	%
¡ Subscription fee		11.1		10.5		0.6		5.8	%		12.8		–1.6		–12.8	%
¡ Basic monthly fee		276.6		278.1		–1.4		–0.5	%		281.4		–4.7		–1.7	%
¡ Installlation		8.9		9.5		–0.6		–6.1	%		9.7		–0.7		–7.7	%
¡ Interconnection		52.7		64.9		–12.2		–18.7	%		43.2		9.5		22.0	%
¨ Local		241.6		219.7		21.9		10.0	%		266.5		–24.9		–9.3	%
¡ Usage		158.5		162.8		–4.2		–2.6	%		183.4		–24.9		–13.6	%
¡ Interconnection		26.8		4.0		22.8		573.3	%		35.8		–9.0		–25.2	%
¡ Others		56.2		52.9		3.3		6.3	%		47.3		9.0		19.0	%
¨ Domestic long distance		166.4		167.0		–0.6		–0.4	%		180.4		–14.0		–7.7	%
¡ Usage		152.3		158.6		–6.3		–4.0	%		173.2		–20.9		–12.1	%
¡ Interconnection		6.3		4.0		2.3		57.8	%		6.9		–0.6		–8.9	%
¡ Others		7.8		4.4		3.4		76.1	%		0.3		7.5		2848.6	%
¨ International long distance		51.8		50.1		1.7		3.4	%		50.7		1.1		2.1	%
¨ International settlement		42.9		37.5		5.3		14.2	%		41.3		1.6		3.9	%
¨ VoIP		7.6		7.7		–0.1		–1.0	%		6.9		0.7		9.9	%
¨ VAS		94.4		100.1		–5.7		–5.7	%		90.6		3.7		4.1	%
¨ Public telephone		5.8		6.4		–0.6		–9.0	%		7.1		–1.3		–18.2	%
¨ 114 phone directory service		31.1		29.4		1.6		5.4	%		36.9		–5.8		–15.7	%
¨ Others		51.6		37.9		13.6		35.9	%		31.2		20.4		65.4	%

¡ Subscriber interconnection revenue declined QoQ, while local interconnection revenue increased QoQ, following adjustments for interconnection scheme in 4Q ‘06

¡ Increased Ann phone sales (1Q ‘06: KRW 6.2 bn, 4Q ‘06: KRW 8.3 bn, 1Q ‘07: KRW 18.1 bn) led to QoQ and YoY increase in other telephone revenue

5

D. LM(Land to Mobile) Interconnection Revenue

(KRW bn)

2007 1Q

2006 4Q

QoQ

2006 1Q

YoY

Amount

D%

Amount

D%

LM Revenue

411.9

425.1

–13.1

–3.1

%

438.4

–26.4

–6.0

%

LM interconnection cost

200.7

219.9

–19.2

–8.7

%

211.5

–10.8

–5.1

%

¡ LM revenue declined QoQ and YoY from decreased traffic

¡ It takes approximately two months for operators to verify the actual volume of LM traffic. Thus figures for 2 months every quarter are based on estimation, resulting in disparity with actual traffic volume

E. Wireless Revenue

(KRW bn)		2007 1Q		2006 4Q		QoQ					2006 1Q		YoY
						Amount		D%					Amount		D%
Wireless revenue		377.2		341.5		35.6		10.4	%		326.5		50.7		15.5	%
¨ PCS resale		363.4		326.6		36.9		11.3	%		307.7		55.8		18.1	%
¡ PCS service		229.4		233.2		–3.7		–1.6	%		217.4		12.0		5.5	%
¡ Handset sales		134.0		93.4		40.6		43.5	%		90.3		43.7		48.5	%
¨ Others		13.7		15.0		–1.2		–8.1	%		18.8		–5.0		–26.8	%

¡ QoQ and YoY increase in wireless revenue from increased handset sales

¡ PCS service revenue declined QoQ from seasonality such as lower number of business days, while YoY increase occured due to increased subscribers

6

F. Operating Expenses

(KRW bn)		2007 1Q		2006 4Q		QoQ					2006 1Q		YoY
						Amount		D%					Amount		D%
Labor		653.2		748.3		–95.1		–12.7	%		586.8		66.4		11.3	%
¨ Salaries & wages		438.3		574.1		–135.8		–23.7	%		436.0		2.3		0.5	%
¨ Employee benefits		109.5		111.6		–2.1		–1.9	%		105.7		3.8		3.6	%
¨ Provision for retirement		105.4		62.6		42.7		68.2	%		45.0		60.3		134.0	%
Commissions		153.0		182.1		–29.1		–16.0	%		151.3		1.6		1.1	%
Marketing expenses		211.7		273.3		–61.6		–22.5	%		139.0		72.7		52.3	%
¨ Sales commission		141.0		183.3		–42.3		–23.1	%		107.2		33.8		31.6	%
¨ Sales promotion		50.2		59.5		–9.3		–15.7	%		20.4		29.8		146.1	%
¨ Advertising		20.6		30.4		–9.9		–32.5	%		11.5		9.1		79.4	%
Provision for doubtful accounts		20.2		–14.1		34.4		N/A			18.4		1.8		9.9	%
Depreciation		477.3		630.7		–153.3		–24.3	%		487.8		–10.5		–2.1	%
Repairs and Maintenance		25.6		82.0		–56.4		–68.8	%		78.4		–52.9		–67.4	%
Cost of goods sold		182.3		146.4		35.9		24.5	%		127.0		55.4		43.6	%
¨ PCS handset cost		145.2		89.4		55.8		62.5	%		96.8		48.4		50.0	%
¨ PDA, WLAN card, others		37.1		57.1		–19.9		–34.9	%		30.2		7.0		23.1	%
Cost of service provided		442.9		492.5		–49.6		–10.1	%		429.2		13.7		3.2	%
¨ Cost of service		193.2		229.6		–36.4		–15.8	%		171.8		21.4		12.4	%
¡ PCS resale network cost to KTF		113.1		121.3		–8.2		–6.8	%		108.3		4.8		4.4	%
¡ SI service cost		42.4		73.3		–30.9		–42.2	%		31.4		10.9		34.8	%
¡ Others		37.7		35.0		2.8		7.9	%		32.1		5.6		17.5	%
¨ International settlement cost		45.8		42.5		3.3		7.8	%		45.7		0.1		0.3	%
¨ LM interconnection cost		200.7		219.9		–19.2		–8.7	%		211.5		–10.8		–5.1	%
¨ Others		3.2		0.0		3.2		N/A			0.0		3.2		N/A
R&D		37.6		69.3		–31.6		–45.7	%		42.6		–5.0		–11.7	%
Others		223.2		242.8		–19.6		–8.1	%		172.4		50.8		29.5	%
CAPEX		269.5		871.1		–601.6		–69.1	%		219.8		49.7		22.6	%

¡ QoQ decline in labor cost is a result of temporary increase in labor cost for 4Q ‘06 due to recognition of annual bonus payments following change in accounting policy

¡ YoY increase in labor cost is due to rise in provision for retirement caused by increased average monthly labor cost from rise in annual bonus payments

¡ YoY increase in marketing cost from increased market competition

¡ QoQ decline in depreciation cost from decrease in tangible assets

¡ QoQ and YoY increase in COGS from increased handset sales following increased subscriber intake

¡ QoQ decline in cost of services from decline in SI service cost, and lower number of business days resulting in decreased KTF network cost

7

G. Non–operating Income

(KRW bn)		2007 1Q		2006 4Q		QoQ					2006 1Q		YoY
						Amount		D%					Amount		D%
Non-operating income		160.0		233.2		–73.2		–31.4	%		168.0		–8.0		–4.8	%
¨ Gains on disposition of investments		0.0		44.8		–44.8		N/A			0.1		–0.1		N/A
¨ Gains on disposition of tangible assets		7.0		1.0		6.0		571.7	%		0.8		6.3		806.4	%
¨ Interest income		20.1		18.1		2.1		11.4	%		18.6		1.6		8.4	%
¨ FX transaction gain		0.9		3.8		–2.8		–75.5	%		2.2		–1.3		–57.6	%
¨ FX translation gain		2.2		23.7		–21.4		–90.6	%		65.3		–63.1		–96.6	%
¨ USO fund		12.9		22.3		–9.4		–42.1	%		11.6		1.3		11.6	%
¨ Gain on equity method		17.3		10.8		6.5		60.7	%		24.4		–7.0		–28.8	%
¨ Others		99.5		108.8		–9.3		–8.6	%		45.2		54.3		120.2	%

¡ QoQ decline in gains on disposition of investments mainly due to the high level posted in 4Q ‘06 from liquidation of Mirae Asset Securities stocks

¡ As of March 31, 2007, net debt exposure for foreign currency (foreign borrowings USD 1,511 mil - foreign currency deposit USD 22 mil) is USD 1,489 million. Exchange rate has increased by KRW 10.7 since year-end 2006, resulting in an FX translation loss of KRW 15 bn

¡ YoY increase in other gains from KRW 40.8 bn refund of call–bonus mileage allowance

<Equity Method>

(KRW bn)		2007 1Q		2006 4Q		QoQ					2006 1Q		YoY
						Amount		D%					Amount		D%
¨ Gain on equity method		17.3		10.8		6.5		60.7	%		24.4		–7.0		–28.8	%
¨ Loss on equity method		8.2		14.3		–6.2		–43.0	%		9.1		–1.0		–10.4	%
Gain or loss on equity method		9.2		–3.5		12.7		N/A			15.3		–6.1		–39.8	%
Gain or loss on equity method
¨ Gain or loss from KTF		55.9		48.7		7.2		14.8	%		57.4		–1.5		–2.6	%
¨ Amortization on goodwill from KTF		–45.6		–45.6		0.0		N/A			–45.6		0.0		N/A
¨ Other subsidiaries		–1.1		–6.6		5.5		N/A			3.5		–4.6		N/A

<Schedule for Amortization on Goodwill (KTF)>

(KRW bn)		2007		2008		2009		2010
Total		154.5		141.1		141.1		76.0

8

H. Non–operating Expenses

(KRW bn)		2007 1Q		2006 4Q		QoQ					2006 1Q		YoY
						Amount		D%					Amount		D%
Non-operating expenses		160.4		141.9		18.5		13.1	%		262.6		–102.2		–38.9	%
¨ Interest expense		77.4		79.2		–1.8		–2.2	%		86.7		–9.3		–10.7	%
¨ FX transaction loss		0.8		2.5		–1.6		–66.6	%		4.9		–4.1		–83.1	%
¨ FX translation loss		17.2		3.3		13.9		421.0	%		7.7		9.5		123.1	%
¨ Loss on equity method		8.2		14.3		–6.2		–43.0	%		9.1		–1.0		–10.4	%
¨ Loss on disposition of fixed assets		8.3		24.9		–16.6		–66.8	%		10.7		–2.4		–22.9	%
¨ Others		48.6		17.8		30.8		173.4	%		143.5		–94.9		–66.1	%

¡ YoY decrease in other non-operating costs due to KRW 80 bn loss in derivatives transaction for FX hedging in 1Q ‘06

9

Appendix 1: Factsheet

Broadband
		Dec-04			Mar-05			Jun-05			Sep-05			Dec-05			Mar-06			Jun-06			Sep-06			Dec-06			Jan-07			Feb-07			Mar-07
Broadband Subs		6,077,694			6,133,293			6,172,475			6,244,040			6,241,789			6,240,605			6,320,260			6,333,119			6,352,542			6,382,446			6,413,395			6,449,729
Net Addition		12,372			26,022			13,917			15,281			-3,506			-46,961			34,787			26,562			4,817			29,904			30,949			36,334
o Megapass Lite		4,888,980			4,862,075			4,821,986			4,837,269			4,788,942			4,724,684			4,772,280			4,834,732			4,937,187			4,987,024			5,040,179			5,106,874
o Megapass Premium		662,841			688,997			717,099			724,032			717,866			689,726			671,292			646,839			604,485			598,046			589,358			579,580
o Megapass Special (1)		2,765			4,970			5,973			7,206			8,196			8,992			9,035			8,730			8,204			8,139			7,998			7,739
o Megapass Ntopia		523,108			577,251			627,417			675,533			726,785			817,203			867,653			842,818			802,666			789,237			775,860			755,536
Broadband M/S
KT		51.0	%		50.7	%		50.3	%		51.8	%		51.2	%		50.0	%		49.5	%		45.6	%		45.2	%		45.3	%		45.3	%		45.3	%
Hanaro		23.1	%		22.7	%		22.7	%		23.0	%		22.7	%		28.6	%		28.2	%		25.9	%		25.7	%		25.8	%		25.7	%		25.6	%
Powercomm		0.0	%		0.0	%		0.0	%		0.5	%		2.1	%		3.8	%		5.6	%		7.1	%		8.6	%		8.8	%		9.0	%		9.3	%
Dacom		1.7	%		2.1	%		2.1	%		2.0	%		1.7	%		1.5	%		1.3	%		1.0	%		0.8	%		0.8	%		0.7	%		0.7	%
SO		9.0	%		9.6	%		10.3	%		11.0	%		11.6	%		12.6	%		12.4	%		16.5	%		16.6	%		16.8	%		16.8	%		17.0	%
Others		15.2	%		14.9	%		14.5	%		11.7	%		10.6	%		3.4	%		3.1	%		3.9	%		3.0	%		2.6	%		2.3	%		2.1	%
WLAN
		Dec-04			Mar-05			Jun-05			Sep-05			Dec-05			Mar-06			Jun-06			Sep-06			Dec-06			Jan-07			Feb-07			Mar-07
WLAN Subs		418,451			455,958			525,718			535,630			519,778			524,671			516,708			492,557			470,855			465,262			459,221			450,147
o NESPOT Family		238,526			243,902			249,454			242,976			237,259			230,597			219,650			200,883			185,599			181,794			177,481			172,750
o NESPOT Solo		29,914			32,189			35,871			37,218			38,385			40,725			41,519			39,374			38,260			38,171			38,098			38,130
o NESPOT Pop		131,882			154,364			180,778			189,955			187,157			180,959			173,070			155,002			138,436			133,910			129,748			124,092
o NESPOT Biz		18,129			25,503			32,337			43,695			45,814			60,776			64,205			64,458			67,091			66,720			66,675			66,033
o NESPOT Play		0			0			27,278			21,786			11,163			11,614			13,925			15,318			13,792			14,327			14,309			13,143
o NESPOT Home		0			0			0			0			0			0			4,339			17,522			27,677			30,340			32,910			35,999
Leased Lines
		Dec-04			Mar-05			Jun-05			Sep-05			Dec-05			Mar-06			Jun-06			Sep-06			Dec-06			Jan-07			Feb-07			Mar-07
Leased Lines		426,633			422,728			417,312			412,160			410,073			407,999			407,357			400,656			400,196			398,737			398,328			398,461
o Local leased line		390,085			387,080			382,946			378,615			376,620			376,458			375,501			370,349			368,693			366,685			367,082			367,169
o DLD leased line		36,233			35,404			34,119			33,300			33,217			31,293			31,480			30,028			31,283			31,886			31,055			31,062
o International leased line		110			105			111			90			91			91			95			94			112			118			127			130
o Broadcasting leased line		205			139			136			155			145			157			281			185			108			48			64			100
Internet Leased Lines		38,775			39,603			40,995			42,523			43,818			45,802			51,553			54,778			56,619			56,874			57,724			58,598
Fixed-line
		Dec-04			Mar-05			Jun-05			Sep-05			Dec-05			Mar-06			Jun-06			Sep-06			Dec-06			Jan-07			Feb-07			Mar-07
Local (‘000)		20,744			20,769			20,729			20,687			20,522			20,527			20,488			20,392			20,331			20,316			20,284			20,281
Domestic Long Distance (‘000)		18,897			18,883			18,791			18,699			18,544			18,629			18,734			18,718			18,688			18,687			18,682			18,713
* Ann (‘000)		53			391			782			945			1,066			1,130			1,267			1,610			1,747			1,799			1,842			1,882
* Ringo (‘000)		2,072			2,905			3,226			3,303			3,382			3,385			3,485			3,707			3,766			3,784			3,794			3,809
* Caller ID Users (‘000)		4,058			4,335			4,600			4,731			4,845			4,931			5,035			5,237			5,315			5,331			5,355			5,391
Fixed-line M/S
Local M/S (subscriber base)		93.8	%		93.8	%		93.5	%		93.2	%		93.2	%		93.0	%		92.7	%		92.4	%		92.2	%		92.0	%		91.9	%		91.7	%
DLD (revenue base) (3)		83.7	%		83.5	%		83.5	%		85.7	%		85.6	%		85.6	%		85.7	%		85.8	%		85.6	%		85.5	%		85.5	%		85.6	%
Reference Data
		Dec-04			Mar-05			Jun-05			Sep-05			Dec-05			Mar-06			Jun-06			Sep-06			Dec-06			Jan-07			Feb-07			Mar-07
Population (‘000)		48,199			48,294			48,294			48,294			48,294			48,344			48,498			48,547			48,378			48,391			48,405			48,418
Number of Household		15,538			15,789			15,789			15,789			15,789			15,989			15,989			15,989			15,989			16,194			16,194			16,194

10

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Dated: April 27, 2007
KT Corporation
By:		/s/ Thomas Bum Joon Kim
Name:		Thomas Bum Joon Kim
Title:		Managing Director