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 2009

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 þ Form 40-F o

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): o

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): o

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 o No þ

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

TABLE OF CONTENTS


SIGNATURES

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 24, 2009
	KT Corporation


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


	By:	/s/ Young Jin Kim
	Name: Young Jin Kim
	Title: Director

April 24, 2009

1st Quarter 2009

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”) for the first quarter of 2009 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 for 2009 first quarter will be filed with the Financial Supervisory Service(FSS) and the Korea Exchange(KRX) on May 15, 2009.

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

Tel : 82-31-727-0950~59
Fax : 82-31-727-0949
E-mail: ir@kt.com

The negative consolidated capital surplus that was recorded as of September 30, 2008 was restated as capital adjustment pursuant to changes of the SKAS No.25(“Consolidated Financial Statements”) as of December 29, 2008. In accordance, capital surplus and other capital adjustment as of fourth quarter 2008 and as of first quarter 2009 have changed in comparison to first quarter 2008.

1. Financial Highlights

A. Summary of Income Statement


	2009			2008			QoQ					2008			YoY					2008
(KRW bn)	1Q			4Q			Amount		D%			1Q			Amount		D%			Cumm.
OPERATING REVENUES		2,773.1			2,875.3			-102.2		-3.6	%		2,967.0			-193.9		-6.5	%		2,773.1
o Internet access		519.5			527.9			-8.4		-1.6	%		528.1			-8.7		-1.6	%		519.5
o Internet application		122.8			129.0			-6.2		-4.8	%		106.9			15.9		14.8	%		122.8
o Data		417.3			415.0			2.3		0.6	%		402.4			14.9		3.7	%		417.3
o Telephone		959.3			974.9			-15.6		-1.6	%		1,023.2			-63.9		-6.2	%		959.3
o LM		305.2			330.3			-25.1		-7.6	%		364.1			-58.9		-16.2	%		305.2
o Wireless		336.0			350.7			-14.7		-4.2	%		419.9			-83.9		-20.0	%		336.0
o Real estate		65.3			63.2			2.1		3.4	%		58.7			6.6		11.2	%		65.3
o Others		47.7			84.4			-36.7		-43.4	%		63.6			-15.9		-24.9	%		47.7
¡ SI		39.7			77.3			-37.6		-48.6	%		55.5			-15.8		-28.4	%		39.7
OPERATING EXPENSES		2,388.6			2,792.0			-403.4		-14.4	%		2,634.0			-245.3		-9.3	%		2,388.6
o Labor		598.2			703.5			-105.3		-15.0	%		683.3			-85.1		-12.5	%		598.2
o Commissions		207.3			211.1			-3.9		-1.8	%		170.9			36.4		21.3	%		207.3
o Sales commission		171.8			172.3			-0.5		-0.3	%		230.1			-58.3		-25.3	%		171.8
o Sales promotion		61.3			69.8			-8.5		-12.2	%		79.3			-18.0		-22.8	%		61.3
o Advertising		8.4			17.5			-9.1		-52.0	%		16.9			-8.5		-50.3	%		8.4
o Provision for doubtful accounts		15.6			-3.3			18.9		N/A			6.9			8.8		127.8	%		15.6
o Depreciation		485.0			666.8			-181.9		-27.3	%		482.3			2.6		0.5	%		485.0
o Repairs & maintenance		17.3			49.1			-31.8		-64.8	%		22.0			-4.7		-21.4	%		17.3
o Cost of goods sold		127.2			106.4			20.8		19.5	%		157.3			-30.1		-19.1	%		127.2
o Cost of service provided		456.0			515.0			-59.0		-11.4	%		476.8			-20.8		-4.4	%		456.0
o R&D		43.8			77.7			-33.9		-43.6	%		56.8			-13.0		-22.9	%		43.8
o Activation/installation and A/S cost		73.1			86.9			-13.9		-16.0	%		96.5			-23.5		-24.3	%		73.1
o Others		123.8			119.1			4.7		4.0	%		154.9			-31.1		-20.1	%		123.8
OPERATING INCOME		384.5			83.3			301.2		361.6	%		333.0			51.4		15.4	%		384.5
Operating margin		13.9	%		2.9	%		11.0% P					11.2	%		2.6% P					13.9	%
EBITDA(1)		869.4			750.1			119.3		15.9	%		815.4			54.1		6.6	%		869.4
EBITDA margin		31.4	%		26.1	%		5.3% P					27.5	%		3.9% P					31.4	%
Non-operating income		225.1			291.9			-66.7		-22.9	%		134.3			90.8		67.6	%		225.1
Non-operating expenses		434.1			405.3			28.8		7.1	%		269.6			164.5		61.0	%		434.1
INCOME BEFORE INCOME TAXES		175.5			-30.1			205.6		N/A			197.8			-22.2		-11.2	%		175.5
Income tax expenses		36.0			-3.9			39.9		N/A			43.7			-7.7		-17.6	%		36.0
Effective tax rate		20.5	%		12.9	%		7.5% P					22.1	%		-1.6% P					20.5	%
NET INCOME		139.6			-26.2			165.8		N/A			154.1			-14.5		-9.4	%		139.6
EPS(2) (units: won)		691			-130			821		N/A			756			-65		-8.6	%		691


(1)		EBITDA = Operating income + depreciation

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

¡		Revenue

		— YoY and QoQ decrease was due to fall in telephone, LM and wireless revenue.

¡		Operating Income

		— QoQ increase was due to decrease in labor and depreciation

		— YoY increase was due to decrease in labor and sales commission

B. Summary of Balance Sheet


	2009			2008			QoQ					2008			YoY
(KRW bn)	1Q			4Q			Amount		D%			1Q			Amount		D%
TOTAL ASSETS		18,841.8			18,684.9			156.9		0.8	%		17,596.1			1,245.7		7.1	%
o Current assets		4,208.1			3,778.1			430.0		11.4	%		3,058.7			1,149.4		37.6	%
¡ Quick assets		4,042.5			3,610.6			432.0		12.0	%		2,953.5			1,089.0		36.9	%
— Cash & Cash equivalents		1,763.0			1,425.9			337.1		23.6	%		884.5			878.4		99.3	%
¡ Inventories		165.6			167.5			-1.9		-1.2	%		105.2			60.4		57.4	%
o Non-current assets		14,633.7			14,906.8			-273.1		-1.8	%		14,537.4			96.3		0.7	%
¡ Investments and other non-current assets		4,164.4			4,081.1			83.3		2.0	%		3,753.8			410.6		10.9	%
— KTF shares		2,590.7			2,560.1			30.5		1.2	%		2,595.4			-4.8		-0.2	%
— Long-term loans		15.7			20.3			-4.7		-23.0	%		39.8			-24.2		-60.7	%
— Others		1,558.1			1,500.7			57.4		3.8	%		1,118.5			439.6		39.3	%
¡ Tangible assets		10,107.4			10,428.7			-321.3		-3.1	%		10,371.0			-263.6		-2.5	%
¡ Intangible assets		361.9			397.0			-35.1		-8.8	%		412.6			-50.7		-12.3	%
TOTAL LIABILITIES		10,310.5			9,853.0			457.4		4.6	%		8,983.8			1,326.6		14.8	%
o Current liabilities		2,686.4			2,585.9			100.5		3.9	%		2,455.7			230.7		9.4	%
¡ Interest-bearing debts		629.3			410.2			219.1		53.4	%		235.1			394.2		167.7	%
¡ Accounts payable		491.8			644.1			-152.4		-23.7	%		664.0			-172.3		-25.9	%
¡ Others		1,565.3			1,531.6			33.8		2.2	%		1,556.5			8.8		0.6	%
o Non-current liabilities		7,624.1			7,267.2			356.9		4.9	%		6,528.2			1,095.9		16.8	%
¡ Interest-bearing debts		6,284.0			5,881.2			402.7		6.8	%		5,104.6			1,179.4		23.1	%
¡ Installation deposit		763.1			781.9			-18.8		-2.4	%		833.1			-69.9		-8.4	%
¡ Others		576.9			604.0			-27.1		-4.5	%		590.5			-13.6		-2.3	%
TOTAL STOCKHOLDERS’ EQUITY		8,531.4			8,831.9			-300.5		-3.4	%		8,612.3			-80.9		-0.9	%
o Common stock		1,561.0			1,561.0			0.0		0.0	%		1,561.0			0.0		0.0	%
o Capital surplus		1,440.6			1,440.6			0.0		0.0	%		1,276.7			163.9		12.8	%
o Retained earnings		9,727.4			9,814.1			-86.7		-0.9	%		9,592.2			135.2		1.4	%
o Capital adjustments		-4,154.2			-3,994.7			-159.4		N/A			-3,815.8			-338.4		N/A
¡ Treasury stock		-3,989.2			-3,824.9			-164.3		N/A			-3,824.9			-164.3		N/A
¡ Gain(loss) on valuation of investment securities		8.9			8.9			0.0		0.0	%		8.9			0.0		0.0	%
¡ Others		-173.9			-178.7			4.9		N/A			0.2			-174.1		N/A
o Others		-43.5			10.9			-54.4		N/A			-1.9			-41.6		N/A
Total interest-bearing debt		6,913.3			6,291.5			621.8		9.9	%		5,339.7			1,573.6		29.5	%
Net debt		5,150.3			4,865.6			284.7		5.9	%		4,455.2			695.2		15.6	%
Net debt / Total shareholders’ equity		60.4	%		55.1	%		5.3% P					51.7	%		8.6% P


¡		Assets

		— Increase in cash and cash equivalents due to issuance of debt.

¡		Liabilities

		— YoY and QoQ increase of non-current liabilities due to issuance of debt.

¡		Stockholders’ Equity

		— Change in treasury stock due to purchase of treasury shares for retirement

		— Change in capital surplus and capital adjustment due to change in accounting standards.

2. Operating Results

A. Internet Revenue


	2009		2008		QoQ					2008		YoY					2009
(KRW bn)	1Q		4Q		Amount		D%			1Q		Amount		D%			Cumm.
Internet access		519.5		527.9		-8.4		-1.6	%		528.1		-8.7		-1.6	%		519.5
o Broadband		519.0		528.2		-9.1		-1.7	%		527.5		-8.5		-1.6	%		519.0
¡ QOOK Internet		485.0		500.7		-15.7		-3.1	%		501.1		-16.1		-3.2	%		485.0
¡ Nespot		6.5		6.9		-0.4		-6.2	%		8.5		-2.0		-23.0	%		6.5
¡ WiBro		27.5		20.5		7.0		34.3	%		17.9		9.6		53.5	%		27.5
o Others		0.5		-0.3		0.8		N/A			0.7		-0.2		-28.3	%		0.5
Internet application		122.8		129.0		-6.2		-4.8	%		106.9		15.9		14.8	%		122.8
o IDC		50.8		59.3		-8.5		-14.3	%		48.9		2.0		4.0	%		50.8
o Bizmeka		33.1		33.9		-0.8		-2.3	%		36.7		-3.6		-9.8	%		33.1
o QOOK TV		19.9		17.6		2.2		12.7	%		5.0		14.8		293.9	%		19.9
o Others		19.0		18.2		0.8		4.5	%		16.3		2.7		16.3	%		19.0



¡	Internet access

	—	YoY and QoQ decrease in revenue due to decrease in QOOK internet ARPU affected by increase of bundled services subscribers and long-term discount subscribers.

¡	Internet application

	—	QoQ decrease from fall in sales revenue such as sales of servers in IDC revenue.

*	QOOK : New brand name for KT’s fixed line products

B. Data Revenue


	2009		2008		QoQ					2008		YoY					2009
(KRW bn)	1Q		4Q		Amount		D%			1Q		Amount		D%			Cumm.
Data		417.3		415.0		2.3		0.6	%		402.4		14.9		3.7	%		417.3
o Leased line		277.9		277.1		0.8		0.3	%		268.3		9.7		3.6	%		277.9
¡ Local		115.2		117.5		-2.3		-2.0	%		116.8		-1.6		-1.4	%		115.2
¡ Domestic long distance		85.1		85.6		-0.5		-0.5	%		80.2		5.0		6.2	%		85.1
¡ International long distance		6.3		6.3		0.0		0.0	%		5.0		1.3		25.8	%		6.3
¡ Broadcasting & others		71.3		67.7		3.6		5.3	%		66.2		5.0		7.6	%		71.3
o Data leased line		39.0		39.9		-0.9		-2.3	%		37.8		1.2		3.2	%		39.0
¡ Packet data		0.4		1.0		-0.6		-62.3	%		1.6		-1.2		-76.5	%		0.4
¡ National network ATM		21.7		21.3		0.3		1.4	%		20.7		0.9		4.6	%		21.7
¡ VPN		16.9		17.5		-0.6		-3.4	%		15.4		1.5		9.7	%		16.9
o Kornet		63.7		61.4		2.3		3.7	%		62.9		0.8		1.3	%		63.7
o Satellite		26.8		27.3		-0.5		-1.7	%		26.0		0.9		3.3	%		26.8
o Others		9.8		9.2		0.6		6.5	%		7.5		2.4		31.4	%		9.8

C. Telephone Revenue


	2009		2008		QoQ					2008		YoY					2009
(KRW bn)	1Q		4Q		Amount		D%			1Q		Amount		D%			Cumm.
Telephone revenue		959.3		974.9		-15.6		-1.6	%		1,023.2		-63.9		-6.2	%		959.3
o Subscriber connection		320.0		322.1		-2.2		-0.7	%		340.3		-20.3		-6.0	%		320.0
¡ Subscription fee		4.3		5.5		-1.2		-21.1	%		9.2		-4.9		-53.0	%		4.3
¡ Basic monthly fee		255.5		261.4		-5.9		-2.3	%		270.1		-14.6		-5.4	%		255.5
¡ Installlation		4.9		5.7		-0.8		-13.5	%		7.9		-3.0		-37.4	%		4.9
¡ Interconnection		55.2		49.6		5.6		11.4	%		53.1		2.1		3.9	%		55.2
o Local		203.1		220.5		-17.4		-7.9	%		224.2		-21.1		-9.4	%		203.1
¡ Usage		126.3		132.2		-5.8		-4.4	%		148.5		-22.2		-14.9	%		126.3
¡ Interconnection		21.6		22.9		-1.4		-5.9	%		23.8		-2.3		-9.5	%		21.6
¡ Others		55.2		65.4		-10.2		-15.7	%		51.8		3.3		6.4	%		55.2
o Domestic long distance		123.0		133.6		-10.6		-7.9	%		152.2		-29.1		-19.1	%		123.0
¡ Usage		117.6		125.9		-8.4		-6.6	%		142.9		-25.3		-17.7	%		117.6
¡ Interconnection		5.2		7.4		-2.2		-29.4	%		9.0		-3.8		-42.1	%		5.2
¡ Others		0.2		0.3		0.0		-9.6	%		0.2		0.0		-6.5	%		0.2
o International long distance		35.3		40.2		-4.9		-12.2	%		46.9		-11.6		-24.8	%		35.3
o International settlement		63.5		67.7		-4.2		-6.1	%		49.7		13.8		27.8	%		63.5
o QOOK Internet phone		41.5		23.7		17.7		74.7	%		10.2		31.3		305.7	%		41.5
o VAS		77.0		74.2		2.8		3.7	%		93.4		-16.4		-17.6	%		77.0
o Public telephone		14.2		21.4		-7.3		-33.9	%		10.6		3.5		33.3	%		14.2
o 114 phone directory service		30.3		27.7		2.6		9.3	%		32.1		-1.8		-5.5	%		30.3
o Others		51.5		43.7		7.8		17.8	%		63.6		-12.2		-19.1	%		51.5


¡	Local — Others

	—	One-off increase in 4Q08 due to reflection of increased local telephone loss estimation of USO.

¡	International long distance

	—	QoQ and YoY decrease due to fall in international call traffic.

¡	QOOK Internet phone

	—	QoQ and YoY increase due to rise in 1) handset sales affected by increase of new subscribers and 2) rise in service revenue affected by increase in retained subscribers.

¡	Public telephone

	—	One-off increase in 4Q08 due to reflection of increased public telephone loss estimation of USO.

D. LM(Land to Mobile) Interconnection Revenue

2009

2008

QoQ

2008

YoY

2009

(KRW bn)

Amount

Cumm.

LM Revenue

305.2

330.3

-25.1

-7.6

364.1

-58.9

-16.2

305.2

LM interconnection cost

165.2

161.7

3.5

2.2

184.5

-19.3

-10.5

165.2


¡	LM Revenue

	—	QoQ and YoY decline due to decrease in subscribers and call traffic.

¡	LM Interconnection cost

	—	One-off decrease in 4Q08 due to reflection of interconnection cost settlement estimate amount (-9bn).

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

E. Wireless Revenue


	2009		2008		QoQ					2008		YoY					2009
(KRW bn)	1Q		4Q		Amount		D%			1Q		Amount		D%			Cumm.
Wireless revenue		336.0		350.7		-14.7		-4.2	%		419.9		-83.9		-20.0	%		336.0
o PCS resale		334.5		351.1		-16.6		-4.7	%		418.2		-83.7		-20.0	%		334.5
¡ PCS service		229.0		242.8		-13.8		-5.7	%		255.1		-26.1		-10.2	%		229.0
¡ Handset sales		105.5		108.3		-2.8		-2.6	%		163.2		-57.6		-35.3	%		105.5
o Others		1.5		-0.4		1.9		N/A			1.7		-0.2		-12.1	%		1.5


¡	Wireless revenue

	—	YoY and QoQ decrease due to fall in new and retained subscribers.

F. Operating Expenses


	2009		2008		QoQ					2008		YoY					2009
(KRW bn)	1Q		4Q		Amount		D%			1Q		Amount		D%			Cumm.
Labor		598.2		703.5		-105.3		-15.0	%		683.3		-85.1		-12.5	%		598.2
o Salaries & wages		445.2		444.9		0.3		0.1	%		476.8		-31.7		-6.6	%		445.2
o Employee welfare		112.8		141.5		-28.6		-20.2	%		108.5		4.3		4.0	%		112.8
o Provision for retirement		40.2		117.2		-77.0		-65.7	%		98.0		-57.8		-59.0	%		40.2
Commissions		207.3		211.1		-3.9		-1.8	%		170.9		36.4		21.3	%		207.3
Marketing expenses		241.5		259.6		-18.2		-7.0	%		326.3		-84.8		-26.0	%		241.5
o Sales commission		171.8		172.3		-0.5		-0.3	%		230.1		-58.3		-25.3	%		171.8
o Sales promotion		61.3		69.8		-8.5		-12.2	%		79.3		-18.0		-22.8	%		61.3
o Advertising		8.4		17.5		-9.1		-52.0	%		16.9		-8.5		-50.3	%		8.4
Provision for doubtful accounts		15.6		-3.3		18.9		N/A			6.9		8.8		127.8	%		15.6
Depreciation		485.0		666.8		-181.9		-27.3	%		482.3		2.6		0.5	%		485.0
Repairs and Maintenance		17.3		49.1		-31.8		-64.8	%		22.0		-4.7		-21.4	%		17.3
Cost of goods sold		127.2		106.4		20.8		19.5	%		157.3		-30.1		-19.1	%		127.2
o PCS handset cost		104.0		108.5		-4.5		-4.1	%		160.6		-56.6		-35.3	%		104.0
o Others		23.2		-2.1		25.3		N/A			-3.3		26.5		N/A			23.2
Cost of service provided		456.0		515.0		-59.0		-11.4	%		476.8		-20.8		-4.4	%		456.0
o Cost of service		210.6		260.8		-50.2		-19.3	%		226.5		-16.0		-7.0	%		210.6
¡ Network cost to KTF		119.0		125.7		-6.7		-5.4	%		128.8		-9.8		-7.6	%		119.0
¡ SI service cost		35.1		73.4		-38.3		-52.2	%		53.9		-18.8		-34.9	%		35.1
¡ Others		56.5		61.7		-5.2		-8.4	%		43.8		12.6		28.9	%		56.5
o International settlement cost		60.3		67.9		-7.6		-11.2	%		59.3		1.0		1.7	%		60.3
o LM interconnection cost		165.2		161.7		3.5		2.2	%		184.5		-19.3		-10.5	%		165.2
o Others		20.0		24.6		-4.6		-18.8	%		6.5		13.4		205.7	%		20.0
R&D		43.8		77.7		-33.9		-43.6	%		56.8		-13.0		-22.9	%		43.8
Activation/installation and A/S cost		73.1		86.9		-13.9		-16.0	%		96.5		-23.5		-24.3	%		73.1
Others		123.8		119.1		4.7		4.0	%		154.9		-31.1		-20.1	%		123.8
CAPEX^*		120.8		627.4		-506.6		-80.8	%		395.3		-274.5		-69.5	%		120.8


*	2008.4Q CAPEX was settled as 627.4 billion(previously disclosed as 627.8bn)

¡	Labor

	—	4Q08 increase in employee welfare cost due to one-off compensation as a result of labor negotiations

	—	YoY and QoQ decrease due to fall in severance indemnities affected by decrease in number of employees and bonus payments.

¡	Commission

	—	QoQ increase due to establishment of KT Data Systems.

¡	Marketing expenses

	—	QoQ and YoY decrease due to fall in new subscribers.

¡	COGS

	—	Rise in QoQ due to increased QOOK internet phone subscribers and WiBro netbook subscribers.

G. Non-operating Income


	2009		2008		QoQ					2008		YoY					2009
(KRW bn)	1Q		4Q		Amount		D%			1Q		Amount		D%			Cumm.
Non-operating income		225.1		291.9		-66.7		-22.9	%		134.3		90.8		67.6	%		225.1
o Gains on disposition of investments		0.0		0.0		0.0		N/A			0.0		0.0		N/A			0.0
o Gains on disposition of tangible assets		0.4		0.5		0.0		-9.0	%		0.4		0.0		1.1	%		0.4
o Interest income		26.0		37.3		-11.4		-30.5	%		18.2		7.8		42.8	%		26.0
o FX transaction gain		14.6		21.4		-6.8		-31.6	%		6.3		8.3		130.3	%		14.6
o FX translation gain		18.1		4.3		13.8		321.7	%		11.0		7.1		64.9	%		18.1
o Gain on equity method		57.2		7.4		49.8		674.5	%		19.1		38.2		200.1	%		57.2
o Others		108.8		221.0		-112.2		-50.8	%		79.3		29.5		37.2	%		108.8



¡	Interest income

	—	One-off increase in 4Q08 due to dividend income in severance indemnities insurance.

¡	Others

	—	QoQ fall due to decrease in gain on valuation of derivatives

H. Non-operating Expenses


	2009		2008		QoQ					2008		YoY					2009
(KRW bn)	1Q		4Q		Amount		D%			1Q		Amount		D%			Cumm.
Non-operating expenses		434.1		405.3		28.8		7.1	%		269.6		164.5		61.0	%		434.1
o Interest expense		98.1		92.1		6.0		6.5	%		72.6		25.5		35.1	%		98.1
o FX transaction loss		12.2		21.2		-9.0		-42.6	%		2.0		10.1		499.9	%		12.2
o FX translation loss		242.4		170.8		71.6		41.9	%		108.4		134.0		123.6	%		242.4
o Loss on equity method		23.8		-9.8		33.6		N/A			36.5		-12.6		-34.7	%		23.8
o Loss on disposition of fixed assets		4.9		18.7		-13.8		-73.9	%		7.9		-3.1		-38.5	%		4.9
o Others		52.7		112.3		-59.6		-53.0	%		42.2		10.5		25.0	%		52.7



¡	FX translation loss

	—	QoQ decline from relatively stronger exchange rate over previous quarter (4Q08: 1,257.5 KRW/US$ ® 1Q09: 1,377.1 KRW/US$)

2009/03


Broadband
	Feb-08			Mar-08			Apr-08			May-08			Jun-08			Jul-08			Aug-08			Sep-08			Oct-08			Nov-08			Dec-08			Jan-09			Feb-09			Mar-09
Broadband Subs		6,555,162			6,627,175			6,648,047			6,684,230			6,687,147			6,741,946			6,811,107			6,754,027			6,793,156			6,771,374			6,711,538			6,683,979			6,682,793			6,714,405
Net Addition		36,341			72,013			20,872			36,183			2,917			54,799			69,161			-57,080			39,129			-21,782			-59,836			-27,559			-1,186			31,612
¡ Megapass Lite		5,565,964			5,599,970			5,600,582			5,613,366			5,596,844			5,629,828			5,662,337			5,611,047			5,624,066			5,600,155			5,552,393			5,518,916			5,512,777			5,533,193
¡ Megapass Special		989,198			1,027,205			1,047,465			1,070,864			1,090,303			1,112,118			1,148,770			1,142,980			1,169,090			1,171,219			1,159,145			1,165,063			1,170,016			1,181,212

Broadband M/S
KT		44.2	%		44.3	%		44.2	%		44.4	%		44.4	%		44.7	%		44.7	%		44.2	%		44.1	%		43.8	%		43.8	%		43.1	%		42.8	%
Hanaro		24.6	%		24.2	%		24.0	%		23.5	%		23.0	%		22.4	%		21.9	%		22.6	%		22.7	%		22.7	%		22.7	%		23.0	%		23.1	%
Powercomm		12.0	%		12.2	%		12.3	%		12.5	%		12.8	%		13.2	%		13.6	%		13.4	%		13.5	%		13.8	%		13.8	%		14.3	%		14.5	%
Dacom		0.4	%		0.4	%		0.4	%		0.3	%		0.3	%		0.3	%		0.3	%		0.2	%		0.2	%		0.2	%		0.2	%		0.2	%		0.2	%
SO		17.7	%		17.8	%		17.9	%		18.2	%		18.4	%		18.6	%		18.4	%		18.5	%		18.4	%		18.4	%		18.4	%		18.4	%		18.4	%
Others		1.1	%		1.1	%		1.1	%		1.0	%		1.0	%		0.9	%		1.1	%		1.0	%		1.0	%		1.0	%		1.0	%		1.0	%		1.0	%

Wireless
	Feb-08			Mar-08			Apr-08			May-08			Jun-08			Jul-08			Aug-08			Sep-08			Oct-08			Nov-08			Dec-08			Jan-09			Feb-09			Mar-09
Nespot		395,395			391,921			388,506			389,393			387,193			379,663			376,860			370,764			363,214			359,465			351,869			347,694			344,045			340,197
WiBRO		120,443			145,290			158,190			197,496			201,903			187,601			177,611			172,048			175,194			176,157			160,422			164,472			172,524			184,015
KT Resale		2,919,223			2,938,583			2,959,223			2,901,544			2,905,973			2,898,953			2,894,718			2,860,213			2,874,966			2,861,746			2,833,751			2,815,794			2,791,803			2,800,273
— KTF Resale Activation		132,058			195,159			150,140			93,935			166,982			151,074			108,058			81,109			133,066			83,316			83,224			92,910			87,689			134,796
— KTF Resale Deactivation		156,834			175,799			129,500			151,614			162,553			158,094			112,293			115,614			118,313			96,536			111,219			110,867			111,680			126,326
— Internal Migration		28,495			4,912			3,800			4,813			7,852			16,115			8,391			7,240			15,567			7,276			16,862			16,479			11,329			11,051
— Net Addition		-24,776			19,360			20,640			-57,679			4,429			-7,020			-4,235			-34,505			14,753			-13,220			-27,995			-17,957			-23,991			8,470
— Churn Rate		5.3	%		6.0	%		4.4	%		5.2	%		5.6	%		5.4	%		3.9	%		4.0	%		4.1	%		3.4	%		3.9	%		3.9	%		4.0	%		4.5	%

* Both the ‘activation’ and ‘deactivation’ numbers above include ‘internal migration’(2G®3G).

Mega-TV
	Feb-08			Mar-08			Apr-08			May-08			Jun-08			Jul-08			Aug-08			Sep-08			Oct-08			Nov-08			Dec-08			Jan-09			Feb-09			Mar-09
Mega-TV		495,913			567,230			608,734			636,536			705,856			722,857			766,058			808,101			846,651			825,760			773,109			712,131			691,009			694,315

Fixed-line
	Feb-08			Mar-08			Apr-08			May-08			Jun-08			Jul-08			Aug-08			Sep-08			Oct-08			Nov-08			Dec-08			Jan-09			Feb-09			Mar-09
Telephony (’000)		20,842			20,818			20,779			20,762			20,741			20,695			20,673			20,621			20,573			20,491			19,866			19,749			19,625			19,468
Household (’000)		19,894			19,861			19,817			19,796			19,768			19,719			19,689			19,635			19,579			19,496			18,883			18,766			18,642			18,483
Business (’000)		948			958			962			966			974			976			984			986			994			996			983			983			983			984
Domestic Long Distance (’000)		18,532			18,512			18,512			18,466			18,440			18,397			18,371			18,321			18,272			18,197			17,634			17,528			17,899			17,263
* Ann (’000)		2,387			2,433			2,461			2,480			2,532			2,540			2,552			2,584			2,596			2,603			2,611			2,619			2,632			2,646
* Ringo (’000)		3,817			3,821			3,813			3,819			3,815			3,805			3,794			3,773			3,754			3,716			3,685			3,640			3,603			3,578
* Caller ID Users (’000)		5,553			5,569			5,582			5,599			5,599			5,591			5,590			5,586			5,579			5,561			5,535			5,506			5,472			5,435
* My Style(Local) (’000)		1,005			985			966			950			933			916			902			887			871			856			839			824			807			787
* My Style(DLD) (’000)		877			858			839			823			808			792			780			767			751			738			723			710			694			676

Fixed-line M/S
Local M/S (subscriber base)		90.2	%		90.1	%		90.1	%		90.1	%		90.1	%		90.1	%		90.1	%		90.0	%		89.9	%		89.9	%		89.8	%		89.8	%		89.8	%		89.9	%
DLD (revenue base)		85.4	%		85.3	%		85.3	%		85.3	%		85.5	%		85.6	%		85.7	%		85.5	%		85.3	%		85.4	%		85.3	%		85.7	%		85.7	%

Reference Data
	Feb-08			Mar-08			Apr-08			May-08			Jun-08			Jul-08			Aug-08			Sep-08			Oct-08			Nov-08			Dec-08			Jan-09			Feb-09			Mar-09
Population (’000)		48,481			48,494			48,507			48,519			48,532			48,544			48,557			48,569			48,582			48,594			48,607			48,618			48,630			48,642
Number of Household (’000)		16,673			16,673			16,673			16,673			16,673			16,673			16,673			16,673			16,673			16,673			16,673			16,673			16,673


*	Broadband

	—	Reorganized service lineup into 2 price packages— Lite and Special in May 19, 2008. Previous Lite, Premium ®Lite(50M), Special, Ntopia®Special(100M)

*	Fixed-line

	—	Telephony : From Jan.2008, number of business line subscribers will be included in Telephony, pursuant to the reporting rules of KCC

	—	Household : Formerly ‘Local’ subscribers

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