Form 6-K

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 January 2008

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 ü 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 ü

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

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: January 28, 2008
KT Corporation

By:		/s/ Thomas Bum Joon Kim
Name:		Thomas Bum Joon Kim
Title:		Managing Director

By:		/s/ Youngwoo Kim
Name:		Youngwoo Kim
Title:		Director

January 25, 2008

LOGO

4^th Quarter 2007

Preliminary Earnings Commentary

(KRX : 030200 / NYSE : KTC)

LOGO

Disclaimer

This material contains estimated information of unaudited non-consolidated preliminary financial and operating data of KT Corporation (“KT” or “the company”) as of December 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 December 31, 2007 will be filed with the Financial Supervisory Service(FSS) and the Korea Exchange(KRX) in March 30, 2008.

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: angelokim@kt.co.kr

LOGO

1. Financial Highlights

A. Summary of Income Statement


(KRW bn)	2007		2007		QoQ			2006		YoY			2007
(KRW bn)	4Q		3Q		Amount	D%		4Q		Amount	D%		Cumm.
Operating revenue	3,013.3		2,952.6		60.7	2.1	%	2,968.3		45.0	1.5	%	11,936.4
¨ Internet access	537.4		528.1		9.4	1.8	%	535.8		1.6	0.3	%	2,118.7
¨ Internet application	95.3		105.6		-10.2	-9.7	%	68.9		26.4	38.3	%	389.9
¨ Data	408.3		404.9		3.3	0.8	%	397.5		10.7	2.7	%	1,627.9
¨ Telephone	1,074.4		1,023.1		51.3	5.0	%	1,053.3		21.2	2.0	%	4,184.7
¨ LM	392.1		387.8		4.3	1.1	%	425.1		-32.9	-7.7	%	1,597.2
¨ Wireless	370.9		362.6		8.2	2.3	%	349.1		21.8	6.2	%	1,511.5
¨ Real estate	50.3		63.5		-13.2	-20.8	%	52.0		-1.6	-3.1	%	218.2
¨ Others	84.5		77.0		7.6	9.8	%	86.6		-2.1	-2.4	%	288.4
^¡ SI	70.7		69.8		0.9	1.3	%	76.6		-6.0	-7.8	%	251.5
Operating expenses	2,816.8		2,620.6		196.2	7.5	%	2,869.3		-52.5	-1.8		10,506.9
¨ Labor	652.5		706.3		-53.8	-7.6	%	748.3		-95.8	-12.8	%	2,639.0
¨ Commissions	196.0		168.4		27.6	16.4	%	182.1		14.0	7.7	%	697.2
¨ Sales commission	181.5		157.7		23.8	15.1	%	183.3		-1.8	-1.0	%	729.0
¨ Sales promotion	58.0		45.2		12.8	28.4	%	59.5		-1.5	-2.6	%	200.6
¨ Advertising	42.2		26.6		15.5	58.3	%	30.4		11.7	38.5	%	124.8
¨ Provision for doubtful accounts	12.8		-19.8		32.6	N/A		-14.1		27.0	N/A		12.8
¨ Depreciation	623.5		541.8		81.7	15.1	%	630.7		-7.2	-1.1	%	2,132.7
¨ Repairs & maintenance	69.9		64.1		5.8	9.0	%	82.0		-12.1	-14.8	%	210.6
¨ Cost of goods sold	142.4		124.3		18.2	14.6	%	146.4		-4.0	-2.7	%	625.2
¨ Cost of service provided	508.7		503.7		5.0	1.0	%	492.5		16.2	3.3	%	1,937.9
¨ R&D	88.9		63.0		26.0	41.2	%	85.5		3.5	4.1	%	260.4
¨ Others	240.3		239.3		1.0	0.4	%	242.7		-2.4	-1.0	%	936.4
Operating income	196.5		332.0		-135.5	-40.8	%	99.0		97.5	98.5		1,429.5
Operating margin	6.5	%	11.2	%	-4.7% P			3.3	%	3.2% P			12.0	%
EBITDA(1)	819.9		873.8		-53.8	-6.2	%	729.6		90.3	12.4	%	3,562.2
EBITDA margin	27.2	%	29.6	%	-2.4% P			24.6	%	2.6% P			29.8	%
Non-operating income	49.0		111.9		-62.9	-56.2	%	175.3		-126.3	-72.0	%	415.6
Non-operating expenses	102.8		136.0		-33.1	-24.4	%	117.0		-14.2	-12.1	%	581.5
Ordinary income	142.7		308.0		-165.3	-53.7	%	157.3		-14.6	-9.3	%	1,263.7
Income tax expenses	27.2		55.3		-28.1	-50.8	%	21.4		5.8	27.1	%	295.4
Effective tax rate	19.1	%	17.9	%	1.1% P			13.6	%	5.5% P			23.4	%
Net income	115.5		252.7		-137.2	-54.3	%	135.9		-20.4	-15.0	%	968.2
EPS(2) (won)	559		1,070		-511	-47.8	%	1,528		-969	-63.4	%	4,684

(1)	EBITDA = Operating income + depreciation

(2)	EPS = Net income ÷ Weighted average of no. of shares outstanding

^¡	Revenue:

Increase in QoQ revenue by KRW 60.7bn due to rise in telephone and internet access sales

Increase in YoY revenue by KRW 45bn mainly led by rise in internet application sales

^¡	Operating Income:

Higher depreciation, provision for doubtful accounts and marketing costs led to a QoQ decrease of KRW 135.5bn

YoY increase of KRW 97.5bn due to decrease in labor costs

LOGO

B. Summary of Balance Sheet


(KRW bn)	2007		2007		QoQ				2006		YoY
(KRW bn)	4Q		3Q		Amount		D %		4Q		Amount	D%
Total assets	17,947.4		17,942.9		4.5		0.0	%	17,962.3		-14.9	-0.1	%
¨ Current assets	3,306.8		3,559.5		(252.8	)	-7.1	%	3,239.2		67.6	2.1	%
^¡Quick assets	3,184.7		3,462.9		(278.2	)	-8.0	%	3,146.2		38.5	1.2	%
- Cash & Cash equivalents	1,229.2		1,220.3		8.9		0.7	%	1,267.6		-38.4	-3.0	%
^¡ Inventories	122.1		96.7		25.4		26.3	%	93.0		29.1	31.3	%
¨ Non-current assets	14,640.6		14,383.4		257.3		1.8	%	14,723.1		-82.5	-0.6	%
^¡ Investments and other non-current assets	3,752.3		3,726.6		25.7		0.7	%	3,854.3		-102.0	-2.6	%
- KTF shares	2,653.1		2,673.5		(20.5	)	-0.8	%	2,765.1		-112.1	-4.1	%
- Long-term loans	66.3		94.7		(28.4	)	-30.0	%	187.6		-121.3	-64.7	%
- Others	1,033.0		958.4		74.6		7.8	%	901.6		131.4	14.6	%
^¡ Tangible assets	10,448.6		10,237.1		211.5		2.1	%	10,398.1		50.5	0.5	%
^¡ Intangible assets	439.7		419.6		20.1		4.8	%	470.8		-31.0	-6.6	%
Total liabilities	9,044.0		9,045.3		(1.3	)	0.0	%	9,413.3		-369.2	-3.9	%
¨ Current liabilities	2,978.1		2,984.9		(6.9	)	-0.2	%	3,270.2		-292.2	-8.9	%
^¡ Interest-bearing debts	438.0		590.2		(152.2	)	-25.8	%	709.7		-271.7	-38.3	%
^¡ Accounts payable	769.9		643.7		126.1		19.6	%	657.4		112.5	17.1	%
^¡ Others	1,770.2		1,751.0		19.2		1.1	%	1,903.2		-133.0	-7.0	%
¨ Long-term liabilities	6,065.9		6,060.4		5.6		0.1	%	6,143.0		-77.1	-1.3	%
^¡ Interest-bearing debts	4,643.9		4,620.8		23.1		0.5	%	4,729.4		-85.5	-1.8	%
^¡ Installation deposit	841.4		858.1		(16.8	)	-2.0	%	907.5		-66.2	-7.3	%
^¡ Others	580.7		581.5		(0.8	)	-0.1	%	506.1		74.6	14.7	%
Total shareholders’ equity	8,903.4		8,897.6		5.8		0.1	%	8,549.1		354.3	4.1	%
¨ Common stock	1,561.0		1,561.0		0.0		0.0	%	1,561.0		0.0	0.0	%
¨ Capital surplus	1,440.8		1,440.8		0.0		0.0	%	1,440.9		-0.1	0.0	%
¨ Retained earnings	9,709.6		9,699.0		10.7		0.1	%	9,353.9		355.7	3.8	%
¨ Capital adjustments	(3,815.8	)	(3,816.0	)	0.3		N/A		(3,817.7	)	1.9	N/A
^¡ Treasury stock	(3,825.7	)	(3,825.7	)	0.0		N/A		(3,826.6	)	0.9	N/A
^¡ Gain(loss) on valuation of investment securities	11.4		12.9		(1.5	)	-11.4	%	13.2		-1.8	-13.6	%
^¡ Others	(1.5	)	(3.3	)	1.7		N/A		(4.4	)	2.8	N/A
¨ Others	7.8		12.9		(5.1	)	-39.6	%	11.0		-3.2	-29.2	%
Total interest-bearing debt	5,081.9		5,211.0		(129.1	)	-2.5	%	5,439.1		-357.2	-6.6	%
Net debt	3,852.7		3,990.7		(138.0	)	-3.5	%	4,171.5		-318.8	-7.6	%
Net debt / Total shareholders’ equity	43.3	%	44.9	%	-1.6% P				48.8	%	-5.5% P

^¡	Assets: Decrease in accounts receivables and non-trade receivables resulted in QoQ decrease of KRW 252.8bn

^¡	Liabilities: Redemption of borrowings resulted in QoQ and YoY decrease in total liabilities

^¡	Shareholders’ Equity: QoQ increase in shareholders’ equity due to rise in 4Q net income

LOGO

2. Operating Results

A. Internet Revenue


	2007	2007	QoQ			2006	YoY			2007
(KRW bn)	4Q	3Q	Amount	D%		4Q	Amount	D%		Cumm.
Internet access	537.4	528.1	9.4	1.8	%	535.8	1.6	0.3	%	2,118.7
¨ Broadband	532.5	529.1	3.4	0.7	%	532.2	0.3	0.1	%	2,116.9
^¡ Megapass	506.5	506.8	-0.3	-0.1	%	518.4	-11.9	-2.3	%	2,037.0
^¡ Nespot	9.0	9.4	-0.5	-4.8	%	13.6	-4.6	-34.0	%	43.3
^¡ WiBro	17.0	12.8	4.2	32.9	%	0.2	16.8	N/A		36.6
¨ Others	4.9	-1.0	5.9	N/A		3.6	1.3	35.5	%	1.8
Internet application	95.3	105.6	-10.2	-9.7	%	68.9	26.4	38.3	%	389.9
¨ IDC	42.5	44.9	-2.4	-5.4	%	30.6	11.9	38.9	%	168.7
¨ Bizmeka	28.0	33.5	-5.5	-16.4	%	16.1	11.9	73.6	%	118.3
¨ Others	24.9	27.2	-2.3	-8.5	%	22.2	2.6	11.8	%	102.9

^¡	Megapass: QoQ and YoY decrease in revenue from decrease in subscribers and from modem rental fee expiration for customers exceeding 3 years subscription as well as long-term customer discounts

^¡	Nespot: QoQ and YoY decrease in revenue due to decreased handset sales and decrease in subscribers

^¡	Internet application: QoQ decline from decrease in one-time sales and YoY increase in revenue due to rise in demand for IDC and Bizmeka

B. Data Revenue


	2007	2007	QoQ			2006	YoY			2007
(KRW bn)	4Q	3Q	Amount	D%		4Q	Amount	D%		Cumm.
Data	408.3	404.9	3.3	0.8	%	397.5	10.7	2.7	%	1,627.9
¨ Leased line	277.4	274.3	3.0	1.1	%	269.4	8.0	3.0	%	1104.7
^¡ Local	118.3	115.4	3.0	2.6	%	113.6	4.7	4.2	%	469.8
^¡ Domestic long distance	83.3	84.4	-1.1	-1.2	%	82.0	1.3	1.6	%	335.9
^¡ International long distance	7.1	4.4	2.7	61.4	%	6.1	1.0	16.4	%	20.4
^¡ Broadcasting & others	68.6	70.1	-1.6	-2.3	%	67.7	0.9	1.3	%	278.6
¨ Data leased line	35.7	35.3	0.3	0.9	%	31.5	4.2	13.2	%	137.1
^¡ Packet data	1.7	2.1	-0.3	-15.4	%	2.2	-0.5	-20.8	%	8.0
^¡ National network ATM	19.8	19.9	-0.1	-0.3	%	16.9	2.9	17.3	%	76.0
^¡ VPN	14.1	13.4	0.7	5.0	%	12.4	1.7	13.6	%	53.0
¨ Kornet	61.4	63.4	-2.0	-3.2	%	56.6	4.7	8.4	%	255.3
¨ Satellite	25.3	25.0	0.3	1.2	%	27.4	-2.1	-7.8	%	102.9
¨ Others	8.6	6.9	1.7	24.1	%	12.6	-4.0	-31.6	%	27.9

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C. Telephone Revenue

	2007	2007	QoQ			2006	YoY			2007
(KRW bn)	4Q	3Q	Amount	D%		4Q	Amount	D%		Cumm.
Telephone revenue	1,074.4	1,023.1	51.3	5.0	%	1,053.3	21.2	2.0	%	4,184.7
¨ Subscriber connection	344.9	345.0	0.0	0.0	%	363.0	-18.0	-5.0	%	1386.9
^¡ Subscription fee	10.5	10.2	0.3	3.2	%	10.5	0.0	-0.1	%	43.5
^¡ Basic monthly fee	272.4	274.1	-1.7	-0.6	%	278.1	-5.7	-2.1	%	1098.5
^¡ Installlation	8.7	7.5	1.2	16.7	%	9.5	-0.8	-8.5	%	34.2
^¡ Interconnection	53.4	53.3	0.1	0.2	%	64.9	-11.5	-17.7	%	210.7
¨ Local	228.1	228.1	0.0	0.0	%	222.5	5.6	2.5	%	933.1
^¡ Usage	151.8	151.5	0.3	0.2	%	166.1	-14.3	-8.6	%	626.2
^¡ Interconnection	23.8	24.0	-0.2	-0.9	%	4.0	19.8	497.4	%	97.8
^¡ Others	52.6	52.6	-0.1	-0.1	%	52.4	0.1	0.2	%	209.0
¨ Domestic long distance	159.8	158.7	1.1	0.7	%	167.0	-7.2	-4.3	%	646.8
^¡ Usage	150.5	149.7	0.7	0.5	%	162.8	-12.3	-7.6	%	613.4
^¡ Interconnection	9.0	8.8	0.2	2.4	%	4.0	5.0	124.7	%	32.3
^¡ Others	0.4	0.3	0.1	57.2	%	0.3	0.1	56.6	%	1.1
¨ International long distance	44.5	48.7	-4.1	-8.5	%	50.1	-5.5	-11.0	%	195.1
¨ International settlement	47.1	35.3	11.8	33.5	%	37.5	9.6	25.5	%	167.7
¨ VoIP	9.1	7.6	1.5	20.1	%	7.7	1.4	18.2	%	32.3
¨ VAS	98.7	94.5	4.2	4.5	%	100.1	-1.4	-1.4	%	379.7
¨ Public telephone	14.1	14.7	-0.7	-4.4	%	21.9	-7.8	-35.7	%	58.5
¨ 114 phone directory service	28.5	30.2	-1.7	-5.5	%	29.4	-0.9	-3.1	%	119.4
¨ Others	99.5	60.4	39.1	64.8	%	54.0	45.5	84.3	%	265.2

^¡	Local, DLD: YoY decline in revenue from fall in subscribers and traffic

^¡	International settlement: QoQ and YoY increase due to increase in international traffic

^¡	Others: Increase in international ISDN demand led to a QoQ and YoY increase

LOGO

D. LM (Land to Mobile) Interconnection Revenue


(KRW bn)	2007	2007	QoQ			2006	YoY			2007
(KRW bn)	4Q	3Q	Amount	D%		4Q	Amount	D%		Cumm.
LM Revenue	392.1	387.8	4.3	1.1	%	425.1	-32.9	-7.7	%	1,597.2
LM interconnection cost	206.2	195.7	10.5	5.4	%	219.9	-13.8	-6.3	%	797.5

^¡	LM Revenue: YoY decline due to decrease in subscribers and traffic

^¡	LM Interconnection cost: 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	2007	QoQ			2006	YoY			2007
(KRW bn)	4Q	3Q	Amount	D%		4Q	Amount	D%		Cumm.
Wireless revenue	370.9	362.6	8.2	2.3	%	349.1	21.8	6.2	%	1,511.5
¨ PCS resale	364.9	358.1	6.8	1.9	%	326.6	38.3	11.7	%	1,479.8
^¡ PCS service	255.6	251.0	4.6	1.8	%	233.2	22.4	9.6	%	989.9
^¡ Handset sales	109.3	107.1	2.2	2.0	%	93.4	15.9	17.0	%	489.9
¨ Others	5.9	4.5	1.5	33.0	%	22.5	-16.6	-73.6	%	31.6

^¡	Wireless revenue : QoQ and YoY increase due to rise in PCS service and handset sales

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F. Operating Expenses


	2007	2007	QoQ			2006	YoY			2007
(KRW bn)	4Q	3Q	Amount	D%		4Q	Amount	D%		Cumm.
Labor	652.5	706.3	-53.8	-7.6	%	748.3	-95.8	-12.8	%	2,639.0
¨ Salaries & wages	465.4	506.5	-41.1	-8.1	%	574.1	-108.7	-18.9	%	1,860.2
¨ Employee benefits	118.7	110.2	8.5	7.7	%	111.6	7.1	6.4	%	453.0
¨ Provision for retirement	68.5	89.7	-21.2	-23.6	%	62.6	5.8	9.3	%	325.9
Commissions	196.0	168.4	27.6	16.4	%	182.1	14.0	7.7	%	697.2
Marketing expenses	281.7	229.6	52.1	22.7	%	273.3	8.4	3.1	%	1,054.4
¨ Sales commission	181.5	157.7	23.8	15.1	%	183.3	-1.8	-1.0	%	729.0
¨ Sales promotion	58.0	45.2	12.8	28.4	%	59.5	-1.5	-2.6	%	200.6
¨ Advertising	42.2	26.6	15.5	58.3	%	30.4	11.7	38.5	%	124.8
Provision for doubtful accounts	12.8	-19.8	32.6	N/A		-14.1	27.0	N/A		12.8
Depreciation	623.5	541.8	81.7	15.1	%	630.7	-7.2	-1.1	%	2,132.7
Repairs and Maintenance	69.9	64.1	5.8	9.0	%	82.0	-12.1	-14.8	%	210.6
Cost of goods sold	142.4	124.3	18.2	14.6	%	146.4	-4.0	-2.7	%	625.2
¨ PCS handset cost	122.9	109.6	13.3	12.1	%	89.4	33.5	37.5	%	523.8
¨ PDA, WLAN card, others	19.6	14.7	4.9	33.1	%	57.1	-37.5	-65.7	%	101.4
Cost of service provided	508.7	503.7	5.0	1.0	%	492.5	16.2	3.3	%	1,937.9
¨ Cost of service	240.3	247.9	-7.6	-3.1	%	229.6	10.8	4.7	%	916.9
^¡ PCS resale network cost to KTF	132.7	126.2	6.5	5.1	%	121.3	11.4	9.4	%	500.7
^¡ SI service cost	68.5	65.9	2.7	4.0	%	73.3	-4.8	-6.5	%	246.0
^¡ Others	39.1	55.8	-16.7	-30.0	%	35.0	4.1	11.7	%	170.2
¨ International settlement cost	57.0	53.6	3.4	6.3	%	42.5	14.4	33.9	%	199.4
¨ LM interconnection cost	206.2	195.7	10.5	5.4	%	219.9	-13.8	-6.3	%	797.5
¨ Others	5.3	6.6	-1.3	-20.2	%	0.5	4.8	937.5	%	24.0
R&D	88.9	63.0	26.0	41.2	%	85.5	3.5	4.1	%	260.4
Others	240.3	239.3	1.0	0.4	%	242.7	-2.4	-1.0	%	936.4
CAPEX*	876.2	535.3	340.9	63.7	%	871.0	5.2	0.6	%	2,228.9

*	3Q 07 CAPEX has been finalized at KRW 535.3bn (Announced as KRW 507.3bn at 3Q preliminary earnings results)

^¡	Labor: QoQ and YoY decrease, mainly due to recognition of increased salary as a result of wage negotiations in 3Q ‘07 and partial early recognition of annual incentive payments in 4Q ‘06.

^¡	Marketing expenses: QoQ and YoY increase due to increase in PCS resale subscribers and promotion of new services

^¡	Provision for doubtful accounts: Conservative year-end provision for doubtful accounts resulted in QoQ and YoY increase

^¡	Depreciation: QoQ increase due to increase in depreciable assets

^¡	COGS: Rise in QoQ COGS due to increased PCS subscribers and PCS hanset costs

^¡	Cost of service provided: QoQ and YoY increase from rise in PCS resale network costs from increased PCS subscribers

LOGO


G. Non-operating Income

	2007	2007	QoQ			2006	YoY			2007
(KRW bn)	4Q	3Q	Amount	D%		4Q	Amount	D%		Cumm.
Non-operating income	49.0	111.9	-62.9	-56.2	%	175.3	-126.3	-72.0	%	415.6
¨ Gains on disposition of investments	2.2	0.0	2.2	N/A		44.8	-42.6	-95.0	%	2.2
¨ Gains on disposition of tangible assets	1.7	0.9	0.7	79.8	%	1.0	0.6	57.6	%	16.1
¨ Interest income	41.9	24.3	17.6	72.3	%	18.1	23.8	131.9	%	117.7
¨ FX transaction gain	1.5	1.0	0.5	49.1	%	3.8	-2.3	-60.6	%	4.0
¨ FX translation gain	-12.3	10.5	-22.7	N/A		23.7	-35.9	N/A		4.1
¨ Gain on equity method	15.3	15.6	-0.3	-2.0	%	10.8	4.5	42.1	%	64.4
¨ Others	-1.3	59.6	-60.9	N/A		73.3	-74.5	N/A		207.1

^¡	Interest gain : QoQ and YoY increase due to rise in retirement insurance and interest rate

^¡	FX translation gain: Due to depreciation of KRW against USD. 3Q FX translation gain was deducted

^¡	Others: QoQ and YoY decrease due to decrease in gains of income tax refund and reversal of provision for doubtful accounts


H. Non-operating Expenses

	2007	2007	QoQ			2006	YoY			2007
(KRW bn)	4Q	3Q	Amount	D%		4Q	Amount	D%		Cumm.
Non-operating expenses	102.8	136.0	-33.1	-24.4	%	117.0	-14.2	-12.1	%	581.5
¨ Interest expense	74.6	77.3	-2.7	-3.5	%	79.2	-4.6	-5.8	%	309.8
¨ FX transaction loss	1.8	1.1	0.8	74.6	%	2.5	-0.6	-25.4	%	5.3
¨ FX translation loss	12.5	1.6	10.9	694.8	%	3.3	9.2	279.4	%	14.8
¨ Loss on equity method	17.5	17.4	0.1	0.4	%	14.3	3.2	22.3	%	60.3
¨ Loss on disposition of fixed assets	20.8	5.8	15.1	260.6	%	24.9	-4.0	-16.2	%	43.4
¨ Others	-24.4	32.9	-57.3	N/A		-7.1	-17.4	N/A		147.8

^¡	FX translation loss: Depreciation of KRW against USD compared to 3Q resulted in translation loss for foreign bonds

^¡	Others: Additional corporate income tax for prior periods recognized in 2Q ‘07(KRW 54.3bn) following changes in accounting standards was recognized in 4Q as corporate income tax, resulting in a QoQ decline

Appendix: Factsheet


Broadband

	Dec-06		Mar-07		Apr-07		May-07		Jun-07		Jul-07		Aug-07		Sep-07		Oct-07		Nov-07		Dec-07
Broadband Subs	6,352,542		6,449,729		6,492,321		6,515,008		6,522,631		6,512,848		6,511,779		6,522,080		6,520,022		6,513,293		6,515,541
Net Addition	4,817		36,334		42,592		22,687		7,623		-9,783		-1,069		10,301		-2,058		-6,729		2,248
o Megapass Lite	4,937,187		5,106,874		5,424,229		5,437,207		5,430,552		5,399,162		5,385,578		5,368,990		5,344,715		5,317,444		5,295,715
o Megapass Premium	604,485		579,580		258,690		262,392		264,185		272,291		267,596		270,462		273,295		275,144		277,399
o Megapass Special	8,204		7,739		32,237		35,463		36,641		38,366		38,873		40,161		41,754		43,623		45,383
o Megapass Ntopia	802,666		755,536		777,165		779,946		791,253		803,029		819,732		842,467		860,258		877,082		897,044

Broadband M/S

KT	45.2	%	45.3	%	45.4	%	45.4	%	45.2	%	45.0	%	44.8	%	44.7	%	44.5	%	44.3	%	44.3	%
Hanaro	25.7	%	25.6	%	25.5	%	25.5	%	25.5	%	25.5	%	25.4	%	25.3	%	25.2	%	25.1	%	24.9	%
Powercomm	8.6	%	9.3	%	9.8	%	10.1	%	10.3	%	10.5	%	10.7	%	10.9	%	11.1	%	11.4	%	11.7	%
Dacom	0.8	%	0.7	%	0.7	%	0.6	%	0.6	%	0.6	%	0.6	%	0.5	%	0.5	%	0.5	%	0.5	%
SO	16.6	%	17.0	%	17.0	%	17.1	%	17.2	%	17.2	%	17.3	%	17.4	%	17.5	%	17.6	%	17.5	%
Others	3.0	%	2.0	%	1.7	%	1.3	%	1.2	%	1.2	%	1.2	%	1.2	%	1.1	%	1.1	%	1.1	%

WLAN

	Dec-06		Mar-07		Apr-07		May-07		Jun-07		Jul-07		Aug-07		Sep-07		Oct-07		Nov-07		Dec-07
WLAN Subs	470,855		450,147		447,858		446,719		432,068		422,315		421,020		419,228		411,653		406,475		401,831
o NESPOT Family	185,599		172,750		168,455		164,790		161,301		157,590		154,327		152,040		148,815		145,657		143,049
o NESPOT Solo	38,260		38,130		37,960		37,684		37,372		37,183		37,024		36,675		36,286		35,925		35,645
o NESPOT Pop	138,436		124,092		121,157		117,223		113,037		108,522		106,235		104,678		100,928		98,307		96,429
o NESPOT Biz	67,091		66,033		68,713		68,563		68,620		67,567		69,195		72,151		71,369		71,567		70,965
o NESPOT Play	13,792		13,143		13,238		18,096		9,103		6,735		8,241		6,643		6,329		6,112		5,235
o NESPOT Home	27,677		35,999		38,335		40,363		42,635		44,718		45,998		47,041		47,926		48,907		50,508

Leased Lines

	Dec-06		Mar-07		Apr-07		May-07		Jun-07		Jul-07		Aug-07		Sep-07		Oct-07		Nov-07		Dec-07
Leased Lines	400,196		398,461		396,959		396,692		396,227		398,281		398,767		394,305		395,629		395,128		396,794
o Local leased line	368,693		367,169		366,925		366,663		366,334		367,524		368,432		363,682		365,805		365,602		367,021
o DLD leased line	31,283		31,062		29,751		29,730		29,523		30,362		29,954		30,262		29,460		29,273		29,515
o International leased line	112		130		130		146		145		149		152		156		157		157		159
o Broadcasting leased line	108		100		153		153		225		246		228		205		208		96		99
Internet Leased Lines	56,619		58,598		57,293		60,231		61,103		61,416		62,390		63,482		63,964		63,499		63,876

Fixed-line

	Dec-06		Mar-07		Apr-07		May-07		Jun-07		Jul-07		Aug-07		Sep-07		Oct-07		Nov-07		Dec-07
Local ('000)	20,331		20,281		20,266		20,259		20,219		20,180		20,153		20,117		20,064		20,018		19,98 0
Domestic Long Distance ('000)	18,688		18,713		18,725		18,749		18,740		18,730		18,719		18,697		18,658		18,599		18,57 1
* Ann ('000)	1,747		1,882		1,958		2,020		2,095		2,126		2,171		2,214		2,252		2,282		2,308
* Ringo ('000)	3,766		3,809		3,664		3,785		3,779		3,791		3,774		3,783		3,610		3,605		3,843
* Caller ID Users ('000)	5,315		5,403		5,438		5,478		5,503		5,510		5,525		5,538		5,538		5,532		5,538
* My Style(Local) ('000)	335		671		775		834		928		1,007		1,053		1,075		1,060		1,044		1,022
* My Style(DLD) ('000)	312		614		707		757		834		898		931		951		936		920		897

Fixed-line M/S

Local M/S (subscriber base)	92.2	%	91.7	%	91.6	%	91.5	%	91.4	%	91.3	%	91.1	%	91.0	%	90.8	%	90.6	%	90.4	%
DLD (revenue base)	85.6	%	85.6	%	85.6	%	85.7	%	85.7	%	85.7	%	85.6	%	85.6	%	85.5	%	85.4	%	85.4	%

Reference Data

	Dec-06		Mar-07		Apr-07		May-07		Jun-07		Jul-07		Aug-07		Sep-07		Oct-07		Nov-07		Dec-07
Population ('000)	48,378		48,418		48,431		48,444		48,457		48,457		48,457		48,457		48,457		48,457		48,457
Number of Household	15,989		16,194		16,194		16,194		16,194		16,194		16,194		16,194		16,194		16,194		16,194