e6vk

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 August 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-

Disclaimer

This material contains estimated information of unaudited preliminary financial and operating data of KT Corporation (“KT” or “the company”) for the second 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 second quarter will be filed with the Financial Supervisory Service(FSS) and the Korea Exchange(KRX) on August 14, 2009.

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

Tel : 82-31-727-5392, 5412, 7363
Fax : 82-31-727-0949
E-mail: ir@kt.com

2009 2Q KT Earnings Release — KGAAP version

This material contains the financial statements of the merged entity prepared in accordance with Korean GAAP. Note that all financial results before June 1, 2009(merger date) are of KT before the merger.

1. Financial Highlights

A. Income Statememt


(KRW bn)	’08-1Q		’08-2Q		’08-3Q		’08-4Q		’09-1Q		’09-2Q		QoQ			YoY			’08-1H		’09-1H		YoY
Operating Revenue		2,967.0		3,029.0		2,913.5		2,875.3		2,773.1		3,564.3		28.5	%		17.7	%		5,996.1		6,337.4		5.7	%
Service Revenue		2,741.3		2,757.5		2,718.1		2,713.1		2,593.9		3,055.2		17.8	%		10.8	%		5,498.8		5,649.2		2.7	%
Sales of Merchandise		225.7		271.6		195.3		162.2		179.2		509.0		184.1	%		87.4	%		497.2		688.2		38.4	%
¨ Wireless		419.9		428.8		364.6		350.7		336.0		1,132.2		237.0	%		164.0	%		848.7		1,468.2		73.0	%
¨ Telephone		1,387.3		1,374.7		1,310.9		1,305.2		1,264.5		1,248.8		-1.2	%		-9.2	%		2,762.0		2,513.3		-9.0	%
¨ Internet		635.1		688.0		690.6		656.8		642.3		649.3		1.1	%		-5.6	%		1,323.0		1,291.6		-2.4	%
¨ Data		402.4		413.0		419.8		415.0		417.3		390.4		-6.5	%		-5.5	%		815.4		807.7		-0.9	%
¨ Real estate		58.7		60.5		63.4		63.2		65.3		70.0		7.1	%		15.6	%		119.3		135.3		13.4	%
¨ Others		63.6		64.0		64.2		84.4		47.7		73.6		54.2	%		14.9	%		127.6		121.3		-4.9	%

Operating Expense		2,634.0		2,661.4		2,584.0		2,792.0		2,388.6		3,200.8		34.0	%		20.3	%		5,295.4		5,589.4		5.6	%
¨ Labor expense		683.3		627.4		600.7		703.5		598.2		670.3		12.1	%		6.8	%		1,310.7		1,268.5		-3.2	%
¨ Commission		170.9		173.0		182.4		211.1		207.3		237.0		14.4	%		37.0	%		343.9		444.3		29.2	%
¨ Sales promotion		79.3		69.0		64.9		69.8		61.3		162.2		164.7	%		135.2	%		148.3		223.4		50.7	%
¨ Sales commission		230.1		228.8		174.6		172.3		171.8		332.0		93.3	%		45.1	%		458.9		503.8		9.8	%
¨ Bad debt expense		6.9		49.4		22.7		-3.3		15.6		14.7		-6.1	%		-70.3	%		56.2		30.3		-46.2	%
¨ Depreciation & Amortization		482.3		493.8		560.2		666.8		485.0		543.3		12.0	%		10.0	%		976.1		1,028.2		5.3	%
¨ Advertising		16.9		32.3		17.2		17.5		8.4		32.8		289.4	%		1.7	%		49.2		41.2		-16.2	%
¨ Repair & Maintenance		22.0		32.1		26.6		49.1		17.3		18.2		5.4	%		-43.1	%		54.1		35.6		-34.3	%
¨ Cost of goods sold		157.3		180.8		117.7		106.4		127.2		403.9		217.6	%		123.3	%		338.1		531.0		57.1	%
¨ Cost of service provided		476.8		481.0		489.8		515.0		456.0		519.5		13.9	%		8.0	%		957.8		975.5		1.8	%
¨ Research & Development		56.8		57.2		59.4		77.7		43.8		49.9		14.0	%		-12.6	%		114.0		93.8		-17.7	%
¨ Activation, Installation & A/S cost		96.5		92.1		98.7		86.9		73.1		83.9		14.9	%		-8.9	%		188.7		157.0		-16.8	%
¨ Others		154.9		144.5		169.1		119.1		123.8		133.1		7.5	%		-7.9	%		299.4		256.8		-14.2	%

Operating Income		333.0		367.6		329.4		83.3		384.5		363.5		-5.5	%		-1.1	%		700.7		747.9		6.7	%
EBITDA		815.4		861.5		889.7		750.1		869.4		906.7		4.3	%		5.3	%		1,676.8		1,776.2		5.9	%

Non-operating Income		134.3		133.8		295.3		291.9		225.1		204.9		-9.0	%		53.2	%		268.1		430.1		60.4	%
Non-operating Expense		269.6		307.9		425.8		405.3		434.1		9.9		-97.7	%		-96.8	%		577.5		444.0		-23.1	%

Income before Income Taxes		197.8		193.5		198.9		-30.1		175.5		558.5		218.1	%		188.7	%		391.2		734.0		87.6	%
Income tax		43.7		32.9		37.5		-3.9		36.0		102.4		184.6	%		210.9	%		76.6		138.4		80.6	%

Net Income		154.1		160.5		161.4		-26.2		139.6		456.1		226.8	%		184.1	%		314.6		595.7		89.3	%
EPS (in KRW)		756		788		799		-130		691		2,226		222.3	%		182.5	%		1,545		2,932		89.8	%


*		EPS : Net Income / Number of Weighted Average Outstanding Shares


¡ Operating Revenue		QoQ and YoY rise was due to increase in wireless revenue as a result of merger with KTF.

¡ Operating Income		QoQ 5.5% decrease due to increase in marketing expense.

¡ Net Income		QoQ 226.8% and YoY 184.1% increase was due to decreased loss on foreign currency translation affected by F/X stabilization.

2009 2Q KT Earnings Release — KGAAP version

B. Balance Sheet


(KRW bn)	’08-1Q			’08-2Q			’08-3Q			’08-4Q			’09-1Q			’09-2Q			QoQ			YoY			’08-1H			’09-1H			YoY
Total Assets		17,596.1			17,801.3			18,478.1			18,684.9			18,841.8			24,623.3			30.7	%		38.3	%		17,801.3			24,623.3			38.3	%
¨ Current assets		3,058.7			3,084.1			3,616.1			3,778.1			4,208.1			7,151.4			69.9	%		131.9	%		3,084.1			7,151.4			131.9	%
¡ Quick assets		2,953.5			2,964.0			3,468.1			3,610.6			4,042.5			6,676.2			65.1	%		125.2	%		2,964.0			6,676.2			125.2	%
— Cash & cash equivalents		884.5			829.5			1,362.0			1,425.9			1,763.0			2,850.7			61.7	%		243.7	%		829.5			2,850.7			243.7	%
— Accounts receivables		1,662.6			1,746.0			1,673.0			1,687.4			1,734.0			3,132.6			80.7	%		79.4	%		1,746.0			3,132.6			79.4	%
¡ Inventories		105.2			120.1			148.0			167.5			165.6			475.2			187.0	%		295.6	%		120.1			475.2			295.6	%
¨ Non-current assets		14,537.4			14,717.2			14,862.0			14,906.8			14,633.7			17,471.9			19.4	%		18.7	%		14,717.2			17,471.9			18.7	%
¡ Investment		3,468.8			3,481.5			3,535.9			3,517.9			3,542.2			1,219.5			-65.6	%		-65.0	%		3,481.5			1,219.5			-65.0	%
— Investment stocks accounted in Equity Method		3,416.0			3,419.4			3,477.7			3,462.6			3,490.0			1,103.8			-68.4	%		-67.7	%		3,419.4			1,103.8			-67.7	%
— Available-for-sale securities		13.0			20.5			18.9			16.4			18.0			31.2			72.7	%		51.7	%		20.5			31.2			51.7	%
¡ Tangible assets		10,371.0			10,501.9			10,450.7			10,428.7			10,107.4			13,755.4			36.1	%		31.0	%		10,501.9			13,755.4			31.0	%
¡ Intangible assets		412.6			391.7			374.5			397.0			361.9			1,238.5			242.2	%		216.2	%		391.7			1,238.5			216.2	%
¡ Others		285.0			342.0			500.9			563.2			622.2			1,258.5			102.3	%		268.0	%		342.0			1,258.5			268.0	%
Total Liabilities		8,983.8			9,025.9			9,583.7			9,853.0			10,310.5			14,466.3			40.3	%		60.3	%		9,025.9			14,466.3			60.3	%
¨ Current liabilities		2,455.7			2,399.7			2,648.9			2,585.9			2,686.4			4,999.2			86.1	%		108.3	%		2,399.7			4,999.2			108.3	%
¡ Current portion of LT debt		235.1			13.5			411.8			410.2			629.3			1,110.3			76.4	%		8141.7	%		13.5			1,110.3			8141.7	%
¡ Current portion of LT accrued payables		0.0			0.0			0.0			0.0			0.0			145.1									0.0			145.1
¡ Accounts payable		664.0			758.6			658.0			644.1			491.8			1,160.2			135.9	%		52.9	%		758.6			1,160.2			52.9	%
¡ Others		1,556.5			1,627.7			1,579.1			1,531.6			1,565.3			2,583.6			65.1	%		58.7	%		1,627.7			2,583.6			58.7	%
¨ Non-current liabilities		6,528.2			6,626.1			6,934.8			7,267.2			7,624.1			9,467.2			24.2	%		42.9	%		6,626.1			9,467.2			42.9	%
¡ Bonds		5,081.2			5,164.8			5,462.1			5,853.2			6,258.3			7,906.1			26.3	%		53.1	%		5,164.8			7,906.1			53.1	%
¡ Long-term borrowings		23.3			32.0			29.6			28.1			25.7			96.2			273.7	%		201.0	%		32.0			96.2			201.0	%
¡ Long-term accounts payables		0.0			0.0			0.0			0.0			0.0			157.3									0.0			157.3
¡ Installation deposit		833.1			813.3			808.8			781.9			763.1			743.0			-2.6	%		-8.6	%		813.3			743.0			-8.6	%
¡ Others		590.5			616.1			634.3			604.0			576.9			564.6			-2.1	%		-8.4	%		616.1			564.6			-8.4	%
Total Stockholders’ Equity		8,612.3			8,775.4			8,894.4			8,831.9			8,531.4			10,156.9			19.1	%		15.7	%		8,775.4			10,156.9			15.7	%
¨ Common stock		1,561.0			1,561.0			1,561.0			1,561.0			1,561.0			1,564.5			0.2	%		0.2	%		1,561.0			1,564.5			0.2	%
¨ Capital surplus		1,276.7			1,258.5			1,257.3			1,440.6			1,440.6			1,458.7			1.3	%		15.9	%		1,258.5			1,458.7			15.9	%
¨ Retained earnings		9,592.2			9,752.7			9,840.3			9,814.1			9,727.4			9,674.6			-0.5	%		-0.8	%		9,752.7			9,674.6			-0.8	%
¨ Capital adjustment		-3,815.8			-3,828.0			-3,815.1			-3,994.7			-4,158.3			-2,509.4			-39.7	%		-34.4	%		-3,828.0			-2,509.4			-34.4	%
¡ Treasury stock		-3,824.9			-3,837.4			-3,824.9			-3,824.9			-3,989.2			-1,407.2			-64.7	%		-63.3	%		-3,837.4			-1,407.2			-63.3	%
¡ Gain/loss on disposal of treasury stock		-0.1			-0.1			-0.1			0.0			0.0			-791.3									-0.1			-791.3
¨ Accumulated Other Comprehensive Income		-1.9			31.2			50.9			10.9			-39.3			-31.5			-20.0	%		-201.0	%		31.2			-31.5			-201.0	%

Total interesting bearing debt		5,339.7			5,210.2			5,903.6			6,291.5			6,913.3			9,615.0			39.1	%		84.5	%		5,210.2			9,615.0			84.5	%
Net debt		4,455.2			4,380.7			4,541.6			4,865.6			5,150.3			6,461.9			25.5	%		47.5	%		4,380.7			6,461.9			47.5	%
Net debt (including LT A/P)		4,455.2			4,380.7			4,541.6			4,865.6			5,150.3			6,764.2			31.3	%		54.4	%		4,380.7			6,764.2			54.4	%

Debt/ equity ratio		104.3	%		102.9	%		107.8	%		111.6	%		120.9	%		142.4	%		21.6	%p		39.6	%p		102.9	%		142.4	%		39.6	%p
Net debt/ equity ratio		51.7	%		49.9	%		51.1	%		55.1	%		60.4	%		63.6	%		3.3	%p		13.7	%p		49.9	%		63.6	%		13.7	%p
Net debt/ equity ratio (including LT A/P)		51.7	%		49.9	%		51.1	%		55.1	%		60.4	%		66.6	%		6.2	%p		16.7	%p		49.9	%		66.6	%		16.7	%p


¡ Assets	Increase in current and tangible assets due to merger.

¡ Liabilities	Increased due to merger.

¡ Stockholders’ Equity	Common Stock	: 3.5 bn KRW was increased due to 700,108 newly issued shares.
	Capital Surplus	: Increased due to issuance of EB.
	Capital Adjustment	: Decrease in treasury stock and loss on disposal of treasury stock due to merger related transactions.

2009 2Q KT Earnings Release — KGAAP version

2. Operating Results

A. Wireless Revenue


(KRW bn)	’08-1Q		’08-2Q		’08-3Q		’08-4Q		’09-1Q		’09-2Q		QoQ			YoY			’08-1H		’09-1H		YoY
Wireless Revenue		419.9		428.8		364.6		350.7		336.0		1,132.2		237.0	%		164.0	%		848.7		1,468.2		73.0	%
¨ Service revenue		255.9		259.4		249.5		241.9		230.3		701.0		204.3	%		170.3	%		515.3		931.4		80.8	%

¡ Voice		222.7		226.4		218.5		215.7		203.0		487.4		140.1	%		115.3	%		449.1		690.4		53.7	%
Monthly base fee		137.1		137.1		134.2		131.2		126.0		295.3		134.3	%		115.4	%		274.2		421.3		53.7	%
Airtime charge		79.8		84.0		79.4		80.2		72.6		201.1		176.8	%		139.3	%		163.8		273.7		67.1	%
Value added service		9.0		8.6		7.8		7.2		6.5		16.2		148.2	%		89.0	%		17.6		22.7		29.1	%
Other voice revenue		-0.8		-0.7		-0.5		-0.6		-0.3		7.6								-1.5		7.3
(Voice discount)		-2.5		-2.6		-2.4		-2.3		-1.9		-32.7								-5.1		-34.6

¡ Data		19.3		20.1		19.1		18.3		17.2		103.2		499.5	%		413.6	%		39.4		120.4		205.8	%
Monthly base fee		0.0		0.0		0.0		0.0		0.0		27.4								0.0		27.5
Messaging (SMS, MMS)		15.9		16.6		15.9		15.6		14.7		39.3		166.9	%		137.4	%		32.5		54.1		66.5	%
Wireless data usage		3.2		3.3		3.0		2.5		2.4		26.1		1004.6	%		683.4	%		6.5		28.5		338.1	%
Contents		0.0		0.0		0.0		0.0		0.0		6.8								0.0		6.8
Others		0.2		0.2		0.1		0.1		0.1		3.5								0.4		3.6		857.8	%

¡ Interconnection revenue		0.0		0.0		0.0		0.0		0.0		72.5								0.0		72.5

¡ Other revenue		13.9		12.9		11.9		7.9		10.1		38.0		274.7	%		194.2	%		26.8		48.1		79.2	%

¨ Handset sales		164.0		169.4		115.1		108.8		105.6		431.2		308.3	%		154.5	%		333.5		536.8		61.0	%


¡ Wireless		Increased due to merger.

B. Telephone Revenue


(KRW bn)	’08-1Q		’08-2Q		’08-3Q		’08-4Q		’09-1Q		’09-2Q		QoQ			YoY			’08-1H		’09-1H		YoY
Telephone Revenue		1,387.3		1,374.7		1,310.9		1,305.2		1,264.5		1,248.8		-1.2	%		-9.2	%		2,762.0		2,513.3		-9.0	%
¨ Subscriber connection		340.3		335.3		329.1		322.1		320.0		309.5		-3.3	%		-7.7	%		675.6		629.5		-6.8	%
¡ Activation & Installation fee		17.1		14.5		10.8		11.2		9.3		9.7		4.5	%		-33.0	%		31.6		19.0		-39.9	%
¡ Monthly base fee		270.1		267.5		264.9		261.4		255.5		248.0		-2.9	%		-7.3	%		537.6		503.5		-6.3	%
¡ Interconnection		53.1		53.3		53.4		49.6		55.2		51.8		-6.2	%		-2.8	%		106.5		107.0		0.5	%

¨ Local		224.2		217.9		212.1		220.5		203.1		209.3		3.1	%		-3.9	%		442.0		412.4		-6.7	%
¡ Local airtime charge		148.5		140.5		134.8		132.2		126.3		119.9		-5.1	%		-14.7	%		289.0		246.2		-14.8	%
¡ Local interconnection		23.8		25.4		25.0		22.9		21.6		22.7		5.1	%		-10.7	%		49.2		44.3		-10.1	%
¡ Others		51.8		52.0		52.3		65.4		55.2		66.7		20.9	%		28.4	%		103.8		121.9		17.4	%

¨ Domestic long distance		152.2		140.2		136.7		133.6		123.0		113.8		-7.5	%		-18.8	%		292.4		236.8		-19.0	%
¡ DLD airtime charge		142.9		132.9		128.6		125.9		117.6		109.2		-7.1	%		-17.9	%		275.8		226.8		-17.8	%
¡ DLD interconnection		9.0		7.0		7.9		7.4		5.2		4.4		-16.5	%		-37.9	%		16.0		9.6		-40.2	%
¡ Others		0.2		0.3		0.3		0.3		0.2		0.2		1.2	%		-10.5	%		0.5		0.5		-8.6	%

¨ LM revenue		364.1		358.5		340.6		330.3		305.2		297.5		-2.5	%		-17.0	%		722.6		602.7		-16.6	%

¨ International long distance		46.9		49.1		43.7		40.2		35.3		35.0		-0.9	%		-28.8	%		96.1		70.3		-26.8	%

¨ International long distance settlement		49.7		47.6		42.9		67.7		63.5		54.0		-15.0	%		13.5	%		97.2		117.5		20.8	%

¨ VoIP		10.2		21.5		19.6		23.7		41.5		50.9		22.7	%		136.9	%		31.7		92.4		191.3	%

¨ VAS		93.4		83.0		89.2		74.2		77.0		87.4		13.6	%		5.3	%		176.3		164.4		-6.8	%

¨ Public phones & 114 service		42.7		38.2		41.6		49.2		44.5		38.1		-14.3	%		-0.3	%		80.9		82.6		2.1	%

¨ Others		63.6		83.5		55.3		43.7		51.5		53.3		3.6	%		-36.1	%		147.1		104.8		-28.8	%


¡ Local		QoQ rise due to increase in other local revenue.

¡ LM		QoQ and YoY fall was due to decreased in number of subscribers and LM traffic.

¡ VoIP		QoQ and YoY increase due to increase in subscribers.

2009 2Q KT Earnings Release — KGAAP version

C. Internet Revenue


(KRW bn)	’08-1Q		’08-2Q		’08-3Q		’08-4Q		’09-1Q		’09-2Q		QoQ			YoY			’08-1H		’09-1H		YoY
Internet Revenue		635.1		688.0		690.6		656.8		642.3		649.3		1.1	%		-5.6	%		1,323.0		1,291.6		-2.4	%

Internet Access		528.1		539.8		534.1		527.9		519.5		524.9		1.0	%		-2.8	%		1,068.0		1,044.4		-2.2	%

¨ Broadband		501.1		508.4		509.5		500.7		485.0		481.7		-0.7	%		-5.3	%		1,009.5		966.7		-4.2	%
¨ Nespot		8.5		8.0		7.3		6.9		6.5		6.2		-4.7	%		-21.9	%		16.4		12.7		-22.5	%
¨ WiBro		17.9		22.9		15.8		20.5		27.5		35.4		28.7	%		54.7	%		40.8		63.0		54.2	%
¨ Others		0.7		0.5		1.4		-0.3		0.5		1.5		221.3	%		192.1	%		1.2		2.0		68.8	%

Internet Application		106.9		148.2		156.5		129.0		122.8		124.4		1.3	%		-16.0	%		255.1		247.2		-3.1	%

¨ IDC		48.9		70.6		71.1		59.3		50.8		51.1		0.6	%		-27.6	%		119.4		101.9		-14.6	%
¨ Bizmeka		36.7		47.4		51.8		33.9		33.1		34.0		2.7	%		-28.3	%		84.0		67.0		-20.2	%
¨ IPTV		5.0		9.6		14.3		17.6		19.9		21.1		6.3	%		119.9	%		14.7		41.0		179.8	%
¨ Others		16.3		20.6		19.3		18.2		19.0		18.2		-4.3	%		-11.7	%		37.0		37.2		0.7	%


¡ Internet Access		YoY decrease was due to stagnant internet user base and decreased ARPU caused by increased discounts for bundling and long-term contractors.

¡ Internet Application		QoQ and YoY decrease due to fall in one-time sale of servers in IDC revenue.

¡ IPTV		YoY increase due to rising ARPU and subscriber base.

D. Data Revenue


(KRW bn)	’08-1Q		’08-2Q		’08-3Q		’08-4Q		’09-1Q		’09-2Q		QoQ			YoY			’08-1H		’09-1H		YoY
Data Revenue		402.4		413.0		419.8		415.0		417.3		390.4		-6.5	%		-5.5	%		815.4		807.7		-0.9	%
¨ Leased line		268.3		269.9		280.0		277.1		277.9		251.6		-9.5	%		-6.8	%		538.2		529.5		-1.6	%
¡ Local		116.8		115.6		115.4		117.5		115.2		102.9		-10.7	%		-11.0	%		232.5		218.1		-6.2	%
¡ Domestic long distance		80.2		81.2		83.5		85.6		85.1		80.2		-5.8	%		-1.2	%		161.3		165.3		2.5	%
¡ International long distance		5.0		6.3		7.3		6.3		6.3		7.1		11.6	%		12.9	%		11.3		13.4		18.6	%
¡ Broadcasting & others		66.2		66.9		73.8		67.7		71.3		61.5		-13.8	%		-8.1	%		133.1		132.7		-0.3	%

¨ Data leased line		62.9		67.8		65.2		61.4		63.7		64.4		1.1	%		-5.1	%		130.8		128.1		-2.0	%

¨ VPN		15.4		16.4		17.3		17.5		16.9		17.4		2.7	%		6.3	%		31.8		34.4		8.0	%

¨ National network ATM		20.7		21.3		21.7		21.3		21.7		20.4		-5.9	%		-4.2	%		42.0		42.0		0.1	%

¨ Satellite		26.0		27.7		26.6		27.3		26.8		27.1		1.1	%		-2.2	%		53.7		54.0		0.5	%

¨ Others		9.1		9.8		9.0		10.2		10.2		9.5		-6.8	%		-3.0	%		18.9		19.7		4.3	%


¡ Data		Relative QoQ and YoY fall due to unrealized leased line revenue from KTF in June as a result of merger.

2009 2Q KT Earnings Release — KGAAP version

E. Operating Expense


(KRW bn)	’08-1Q		’08-2Q		’08-3Q		’08-4Q		’09-1Q		’09-2Q		QoQ			YoY			’08-1H		’09-1H		YoY
Operating Expense		2,634.0		2,661.4		2,584.0		2,792.0		2,388.6		3,200.8		34.0	%		20.3	%		5,295.4		5,589.4		5.6	%
Labor Expense		683.3		627.4		600.7		703.5		598.2		670.3		12.1	%		6.8	%		1,310.7		1,268.5		-3.2	%
¨ Salaries & wages		476.8		450.6		437.9		444.9		445.2		446.0		0.2	%		-1.0	%		927.4		891.1		-3.9	%
¨ Provision for retirement		98.0		57.3		49.8		117.2		40.2		69.0		71.6	%		20.4	%		155.3		109.2		-29.7	%
¨ Employee welfare		108.5		119.6		113.1		141.5		112.8		155.3		37.7	%		29.9	%		228.1		268.1		17.6	%

Commission		170.9		173.0		182.4		211.1		207.3		237.0		14.4	%		37.0	%		343.9		444.3		29.2	%

Sales Promotion		79.3		69.0		64.9		69.8		61.3		162.2		164.7	%		135.2	%		148.3		223.4		50.7	%

Sales Commission		230.1		228.8		174.6		172.3		171.8		332.0		93.3	%		45.1	%		458.9		503.8		9.8	%

Bad Debt Expenses		6.9		49.4		22.7		-3.3		15.6		14.7		-6.1	%		-70.3	%		56.2		30.3		-46.2	%

Depreciation & Amortization		482.3		493.8		560.2		666.8		485.0		543.3		12.0	%		10.0	%		976.1		1,028.2		5.3	%

Advertising		16.9		32.3		17.2		17.5		8.4		32.8		289.4	%		1.7	%		49.2		41.2		-16.2	%

Repair & Maintenance		22.0		32.1		26.6		49.1		17.3		18.2		5.4	%		-43.1	%		54.1		35.6		-34.3	%

Cost of Goods Sold		157.3		180.8		117.7		106.4		127.2		403.9		217.6	%		123.3	%		338.1		531.0		57.1	%
¨ Cost of mobile handset sold		106.8		99.5		47.7		58.1		54.4		325.4		498.5	%		226.9	%		206.4		379.8		84.0	%
¨ Others		50.4		81.3		70.0		48.3		72.8		78.5		7.8	%		-3.5	%		131.7		151.3		14.8	%

Cost of Service Provided		476.8		481.0		489.8		515.0		456.0		519.5		13.9	%		8.0	%		957.8		975.5		1.8	%
¨ Cost of service		226.5		235.6		238.4		260.8		210.6		207.8		-1.3	%		-11.8	%		462.1		418.4		-9.5	%
¨ International long distance settlement cost		59.3		59.3		54.7		67.9		60.3		55.4		-8.2	%		-6.7	%		118.6		115.7		-2.5	%
¨ Interconnection expense		184.5		176.8		183.9		161.7		165.2		222.3		34.6	%		25.8	%		361.2		387.5		7.3	%
¨ Others		6.5		9.3		12.8		24.6		20.0		33.9		69.7	%		263.3	%		15.9		53.9		239.6	%

Research & Development		56.8		57.2		59.4		77.7		43.8		49.9		14.0	%		-12.6	%		114.0		93.8		-17.7	%

Activation, Installation & A/S Cost		96.5		92.1		98.7		86.9		73.1		83.9		14.9	%		-8.9	%		188.7		157.0		-16.8	%

Others		154.9		144.5		169.1		119.1		123.8		133.1		7.5	%		-7.9	%		299.4		256.8		-14.2	%

CAPEX*		3,953		6,530		5,111		6,279		1,471		2,506		70.4	%		-61.6	%		10,483		3,977		-62.1	%


*		2009 1Q CAPEX was settled as 147.1bn KRW (previously disclosed amount : 120.8bn KRW).


¡ Labor		QoQ increase due to merger with KTF and increase in retiring employees.

¡ Commission		YoY increase due to merger and commission payments to newly established KT Data Systems.

¡ Cost of Service Provided		Rise in interconnections costs due to merger

¡ Bad Debt Expenses		QoQ and YoY decrease due to fall in estimation rate for accrual of bad debt expense, which offset the effects from the merger.

2009 2Q KT Earnings Release — KGAAP version

F. Marketing Cost


(KRW bn)	’08-1Q		’08-2Q		’08-3Q		’08-4Q		’09-1Q		’09-2Q		QoQ			YoY			’08-1H		’09-1H		YoY
¨ Sales Promotion		79.3		69.0		64.9		69.8		61.3		162.2		164.7	%		135.2	%		148.3		223.4		50.7	%
¨ Sales Commission		230.1		228.8		174.6		172.3		171.8		332.0		93.3	%		45.1	%		458.9		503.8		9.8	%
¨ Advertising		16.9		32.3		17.2		17.5		8.4		32.8		289.4	%		1.7	%		49.2		41.2		-16.2	%
(Profits from mobile handset sold)		-57.2		-69.9		-67.4		-50.7		-51.2		-105.8		106.5	%		51.4	%		-127.1		-157.1		23.6	%

Total Marketing Cost		269.1		260.1		189.2		208.9		190.2		421.2		121.4	%		61.9	%		529.2		611.4		15.5	%


¡ Marketing Cost		Total marketing cost for the 2Q was 421.2bn KRW. QoQ and YoY increase due to merger.

G. Interconnection Expenses


(KRW bn)	’08-1Q		’08-2Q		’08-3Q		’08-4Q		’09-1Q		’09-2Q		QoQ			YoY			’08-1H		’09-1H		YoY
Interconnection Expenses		184.5		176.8		183.9		161.7		165.2		222.3		34.6	%		25.8	%		361.2		387.5		7.3	%
¡ MM		0.0		0.0		0.0		0.0		0.0		58.6								0.0		58.6
¡ ML		0.0		0.0		0.0		0.0		0.0		3.3								0.0		3.3
¡ LM		164.0		158.2		165.9		139.6		144.6		140.9		-2.6	%		-10.9	%		322.2		285.5		-11.4	%
¡ Others		20.4		18.6		18.1		22.0		20.5		19.6		-4.7	%		5.4	%		39.0		40.1		2.8	%


*		Interconnection expenses may not move proportionally to voice traffic due to difference in estimation.

2009 2Q KT Earnings Release — KGAAP version

H. Non-operating Income


(KRW bn)	’08-1Q		’08-2Q		’08-3Q		’08-4Q		’09-1Q		’09-2Q		QoQ			YoY			’08-1H		’09-1H		YoY
Non-operating Income		134.3		133.8		295.3		291.9		225.1		204.9		-9.0	%		53.2	%		268.1		430.1		60.4	%
¨ Interest Income		18.2		25.8		22.3		37.3		26.0		52.6		102.5	%		104.1	%		43.9		78.5		78.7	%
¨ Gain on foreign currency transaction		6.3		5.2		16.1		21.4		14.6		5.8		-60.2	%		11.7	%		11.6		20.5		76.8	%
¨ Gain on foreign currency translation		11.0		6.5		14.6		4.3		18.1		-5.3		-129.0	%		-180.3	%		17.5		12.9		-26.6	%
¨ Gain on Equity Method		19.1		30.6		15.4		7.4		57.2		57.2		-0.1	%		87.0	%		49.7		114.4		130.4	%
¨ Gain on disposal of tangible assets		0.4		1.6		1.0		0.5		0.4		5.2		1071.5	%		231.7	%		2.0		5.6		181.2	%
¨ Others		79.3		64.1		225.9		221.0		108.8		89.5		-17.8	%		39.6	%		143.4		198.2		38.2	%


¡ Interest Income		QoQ increase due to i) merger with KTF and ii) one-off reflection of 16.5bn KRW of interest income from reimbursement of FTC fines following court ruling. * 18bn KRW net reimbursed fine is included in other non-operating income.

¡ Other Non-operating Income		QoQ fall due to decrease in gain on valuation of derivatives affected by KRW/USD appreciation within the quarter.

I. Non-operating Expense


(KRW bn)	’08-1Q		’08-2Q		’08-3Q		’08-4Q		’09-1Q		’09-2Q		QoQ			YoY			’08-1H		’09-1H		YoY
Non-operating Expense		269.6		307.9		425.8		405.3		434.1		9.9		-97.7	%		-96.8	%		577.5		444.0		-23.1	%
¨ Interest Expense		72.6		85.8		78.8		92.1		98.1		87.6		-10.7	%		2.1	%		158.4		185.7		17.2	%
¨ Loss on foreign currency transaction		2.0		5.4		10.4		21.2		12.2		9.5		-22.3	%		75.8	%		7.4		21.6		192.0	%
¨ Loss on foreign currency translation		108.4		88.0		290.1		170.8		242.4		-181.3		-174.8	%		-306.1	%		196.4		61.1		-68.9	%
¨ Loss on Equity Method		36.5		54.4		-7.7		-9.8		23.8		18.8		-21.2	%		-65.5	%		90.9		42.6		-53.2	%
¨ Loss on disposal of tangible assets		7.9		16.3		6.7		18.7		4.9		14.0		186.4	%		-14.3	%		24.2		18.8		-22.2	%
¨ Others		42.2		58.0		47.5		112.3		52.7		61.4		16.5	%		5.9	%		100.2		114.2		13.9	%


¡ Loss on For.Cur. Translation		KRW/USD appreciation within the quarter (1377.1Won/$®1284.7Won/$) resulted in reduction in loss on foreign currency translation.

¡ Loss on Disposal of Tangible Assets		QoQ increase due to merger.

2009 2Q KT Earnings Release — KGAAP version

* Operation Highlights

1. Fixed-Line (’000)

’08-1Q

’08-2Q

’08-3Q

’08-4Q

’09-1Q

’09-2Q

QoQ

YoY

’08-1H

’09-1H

YoY

Telephony

20,881

20,944

20,882

20,194

19,972

19,852

-0.6

-5.2

20,944

19,852

-5.2

PSTN

20,818

20,741

20,621

19,866

19,468

19,057

-2.1

-8.1

20,741

19,057

-8.1

Household

19,861

19,768

19,635

18,883

18,483

18,070

-2.2

-8.6

19,768

18,070

-8.6

Business

958

974

986

983

984

987

0.2

1.4

974

987

1.4

VoIP

203

261

328

505

795

57.6

291.9

203

795

291.9

Broadband

6,627

6,687

6,754

6,712

6,714

6,738

0.4

0.8

6,687

6,738

0.8

IPTV

567

706

808

773

694

724

4.3

2.6

706

724

2.6

Nespot

392

387

371

352

340

330

-3.1

-14.9

387

330

-14.9

Wibro

145

202

172

160

184

218

18.7

8.2

202

218

8.2


2. Wireless	’08-1Q			’08-2Q			’08-3Q			’08-4Q			’09-1Q			’09-2Q			QoQ			YoY			’08-1H			’09-1H			YoY
Subscribers (’000)		13,940			14,165			14,259			14,365			14,547			14,713			1.1	%		3.9	%		14,165			14,713			3.9	%
Gross addition		2,343			2,350			1,788			1,463			1,623			2,173			34.0	%		-7.5	%		4,693			3,796			-19.1	%
Deactivation		2,124			2,125			1,695			1,356			1,440			2,008			39.4	%		-5.5	%		4,249			3,448			-18.8	%
Net addition		219			225			93			107			182			165			-9.1	%		-26.5	%		445			348			-21.8	%
Churn rate		4.4	%		4.4	%		3.2	%		2.6	%		2.8	%		4.0	%		1.2	%p		-0.3	%p		4.4	%		3.4	%		-0.9	%p
ARPU (KRW)		34,818			35,954			35,637			36,249			34,669			35,353			2.0	%		-1.7	%

Voice		24,146			24,804			24,482			24,609			23,612			23,967			1.5	%		-3.4	%
Data		6,103			6,356			6,454			6,384			6,431			6,650			3.4	%		4.6	%
Interconnection		4,569			4,794			4,701			5,256			4,627			4,737			2.4	%		-1.2	%


*		Wireless ARPU was calculated based on revenue from the “Guidance” material.

[Attachment]

2009 2Q KT Earnings Release — Guidance version

The unaudited business and financial results of the merged company contained in this material prepared in accordance with Korean GAAP is for the sole convenience of investors and analysts.

1. Financial Highlights

A. Income Statememt


(KRW bn)	’08-1Q		’08-2Q		’08-3Q		’08-4Q		’09-1Q		’09-2Q		QoQ			YoY			’08-1H		’09-1H		YoY
Operating Revenue		4,752.9		5,006.6		4,641.6		4,531.7		4,514.5		4,872.5		7.9	%		-2.7	%		9,759.5		9,387.0		-3.8	%
Service Revenue		3,878.0		3,960.8		3,928.6		3,954.9		3,787.7		3,888.1		2.7	%		-1.8	%		7,838.7		7,675.8		-2.1	%
Sales of Merchandise		874.9		1,045.8		713.1		576.8		726.8		984.4		35.4	%		-5.9	%		1,920.8		1,711.2		-10.9	%
¨ Wireless		2,310.2		2,515.7		2,200.9		2,100.3		2,183.0		2,507.9		14.9	%		-0.3	%		4,825.8		4,691.0		-2.8	%
¨ Telephone		1,361.9		1,348.4		1,284.3		1,282.3		1,239.9		1,234.1		-0.5	%		-8.5	%		2,710.2		2,474.0		-8.7	%
¨ Internet		633.5		686.3		689.0		655.4		640.7		646.2		0.9	%		-5.8	%		1,319.8		1,286.9		-2.5	%
¨ Data		323.6		331.3		337.7		344.1		335.5		338.6		0.9	%		2.2	%		654.9		674.2		2.9	%
¨ Real estate		62.3		63.3		67.9		67.0		69.1		73.1		5.7	%		15.5	%		125.6		142.2		13.2	%
¨ Others		61.5		61.7		61.8		82.5		46.2		72.6		57.1	%		17.7	%		123.1		118.7		-3.6	%

Operating Expense		4,360.4		4,684.1		4,173.8		4,272.0		3,916.3		4,389.1		12.1	%		-6.3	%		9,044.5		8,305.4		-8.2	%
¨ Labor expense		744.8		680.3		659.1		757.9		660.0		703.7		6.6	%		3.4	%		1,425.2		1,363.6		-4.3	%
¨ Commission		263.1		274.2		281.9		316.0		299.5		311.3		4.0	%		13.5	%		537.2		610.8		13.7	%
¨ Sales promotion		164.0		376.8		263.9		198.6		194.1		269.4		38.8	%		-28.5	%		540.8		463.6		-14.3	%
¨ Sales commission		714.4		644.8		467.2		536.7		503.9		544.4		8.0	%		-15.6	%		1,359.2		1,048.3		-22.9	%
¨ Bad debt expense		6.9		55.7		38.9		19.4		35.1		18.5		-47.3	%		-66.8	%		62.6		53.6		-14.3	%
¨ Depreciation & Amortization		794.5		803.6		863.0		986.9		775.3		736.6		-5.0	%		-8.3	%		1,598.1		1,511.9		-5.4	%
¨ Advertising		41.3		65.2		47.6		39.6		26.3		42.8		62.6	%		-34.3	%		106.5		69.1		-35.1	%
¨ Repair & Maintenance		35.0		48.4		42.9		70.7		27.8		26.7		-4.0	%		-44.8	%		83.4		54.5		-34.6	%
¨ Cost of goods sold		674.9		815.6		530.5		401.5		568.0		836.9		47.3	%		2.6	%		1,490.5		1,405.0		-5.7	%
¨ Cost of service provided		502.1		517.4		540.6		561.4		493.6		557.9		13.0	%		7.8	%		1,019.5		1,051.5		3.1	%
¨ Research & Development		57.6		58.2		61.2		79.6		44.9		50.9		13.4	%		-12.5	%		115.8		95.8		-17.2	%
¨ Activation, Installation & A/S cost		96.5		92.1		98.7		86.9		73.1		83.9		14.9	%		-8.9	%		188.7		157.0		-16.8	%
¨ Others		265.3		251.8		278.2		216.8		214.8		205.9		-4.1	%		-18.2	%		517.1		420.7		-18.6	%

Operating Income		392.6		322.4		467.8		259.7		598.2		483.4		-19.2	%		49.9	%		715.0		1,081.6		51.3	%
EBITDA		1,187.1		1,126.0		1,330.9		1,246.6		1,373.5		1,220.0		-11.2	%		8.3	%		2,313.1		2,593.5		12.1	%

Non-operating Income		166.5		160.6		371.7		356.3		252.2		150.1		-40.5	%		-6.5	%		327.1		402.4		23.0	%
Non-operating Expense		339.5		341.4		580.9		576.2		561.1		35.8		-93.6	%		-89.5	%		680.9		596.9		-12.3	%

Income before Income Taxes		219.6		141.6		258.6		39.8		289.3		597.7		106.6	%		322.1	%		361.2		887.0		145.6	%
Income tax		54.1		-4.7		63.2		19.8		91.6		93.5		2.1	%	NA				49.4		185.1		274.8	%

Net Income		165.5		146.3		195.3		20.0		197.7		504.2		155.0	%		244.7	%		311.8		701.9		125.1	%
EPS (in KRW)		705		623		832		85		842		2,148		150.0	%		244.7	%		1,328		2,990		125.1	%


*		EPS : Net Income / Number of Outstanding Shares as of June 30, 2009


¡ Operating Revenue		QoQ 7.9% rise stemmed from increases in mobile, internet and data revenues. YoY 2.7% fall due to reduction in fixed-line subscribers and increase in discounts on mobile service.

¡ Operating Income		Declined 19.2% QoQ due to increases in marketing expense and labor expense. Jumped 49.9% YoY due to efficiently controlled marketing cost and decrease in depreciation expense.

¡ Net Income		Due to stabilized KRW/USD rate, sharp reduction in loss on foreign currency transaction, led to 155.0% QoQ and 244.7%% YoY growth.

[Attachment]

2009 2Q KT Earnings Release — Guidance version

B. Balance Sheet


(KRW bn)	’08-1Q			’08-2Q			’08-3Q			’08-4Q			’09-1Q			’09-2Q			QoQ			YoY			’08-1H			’09-1H			YoY
Total Assets		22,586.2			22,999.9			23,806.7			24,127.1			24,385.8			24,623.3			1.0	%		7.1	%		22,999.9			24,623.3			7.1	%
¨ Current assets		4,600.6			4,746.5			5,398.8			5,756.1			6,454.7			7,151.4			10.8	%		50.7	%		4,746.5			7,151.4			50.7	%
¡ Quick assets		4,319.0			4,348.3			5,007.3			5,378.2			6,062.3			6,676.2			10.1	%		53.5	%		4,348.3			6,676.2			53.5	%
— Cash & cash equivalents		1,029.5			890.0			1,558.5			1,824.9			2,291.1			2,850.7			24.4	%		220.3	%		890.0			2,850.7			220.3	%
— Accounts receivables		2,723.8			2,920.2			2,821.9			2,855.0			3,010.3			3,132.6			4.1	%		7.3	%		2,920.2			3,132.6			7.3	%
¡ Inventories		281.6			398.2			391.5			377.9			392.3			475.2			21.1	%		19.3	%		398.2			475.2			19.3	%
¨ Non-current assets		17,985.6			18,253.4			18,407.9			18,371.0			17,931.2			17,471.9			-2.6	%		-4.3	%		18,253.4			17,471.9			-4.3	%
¡ Investment		1,181.3			1,247.9			1,270.5			1,217.3			1,228.8			1,219.5			-0.8	%		-2.3	%		1,247.9			1,219.5			-2.3	%
— Investment stocks accounted in Equity Method		820.5			888.2			932.8			902.5			899.3			1,103.8			22.7	%		24.3	%		888.2			1,103.8			24.3	%
— Available-for-sale securities		261.6			252.7			240.7			219.1			242.1			31.2			-87.1	%		-87.7	%		252.7			31.2			-87.7	%
¡ Tangible assets		14,622.5			14,699.0			14,640.2			14,591.3			14,173.4			13,755.4			-2.9	%		-6.4	%		14,699.0			13,755.4			-6.4	%
¡ Intangible assets		1,557.0			1,481.8			1,407.3			1,372.5			1,278.1			1,238.5			-3.1	%		-16.4	%		1,481.8			1,238.5			-16.4	%
¡ Others		624.8			824.7			1,089.9			1,189.9			1,250.8			1,258.5			0.6	%		52.6	%		824.7			1,258.5			52.6	%
Total Liabilities		11,922.9			12,291.8			12,954.3			13,296.1			13,796.8			14,466.3			4.9	%		17.7	%		12,291.8			14,466.3			17.7	%
¨ Current liabilities		4,301.9			4,344.4			4,640.6			4,370.7			4,825.3			4,999.2			3.6	%		15.1	%		4,344.4			4,999.2			15.1	%
¡ Current portion of LT debt		595.1			383.9			1,025.6			1,037.9			1,114.4			1,110.3			-0.4	%		189.2	%		383.9			1,110.3			189.2	%
¡ Current portion of LT accrued payables		124.3			125.7			127.2			128.7			143.4			145.1			1.2	%		15.4	%		125.7			145.1			15.4	%
¡ Accounts payable		1,073.0			1,200.1			852.4			757.3			786.0			1,160.2			47.6	%		-3.3	%		1,200.1			1,160.2			-3.3	%
¡ Others		2,509.5			2,634.6			2,635.3			2,446.7			2,781.5			2,583.6			-7.1	%		-1.9	%		2,634.6			2,583.6			-1.9	%
¨ Non-current liabilities		7,621.0			7,947.4			8,313.7			8,925.5			8,971.5			9,467.2			5.5	%		19.1	%		7,947.4			9,467.2			19.1	%
¡ Bonds		5,754.8			6,085.2			6,402.9			7,030.3			7,269.1			7,906.1			8.8	%		29.9	%		6,085.2			7,906.1			29.9	%
¡ Long-term borrowings		92.8			94.6			124.6			116.1			108.4			96.2			-11.2	%		1.7	%		94.6			96.2			1.7	%
¡ Long-term accounts payables		286.3			289.4			292.6			295.7			155.5			157.3			1.2	%		-45.7	%		289.4			157.3			-45.7	%
¡ Installation deposit		833.0			813.3			808.7			781.8			763.1			743.0			-2.6	%		-8.6	%		813.3			743.0			-8.6	%
¡ Others		654.2			665.0			684.9			701.6			675.5			564.6			-16.4	%		-15.1	%		665.0			564.6			-15.1	%
Total Stockholders’ Equity		10,663.4			10,708.1			10,852.4			10,831.0			10,589.0			10,156.9			-4.1	%		-5.1	%		10,708.1			10,156.9			-5.1	%
¨ Capital stock		1,564.5			1,564.5			1,564.5			1,564.5			1,564.5			1,564.5			0.0	%		0.0	%		1,564.5			1,564.5			0.0	%
¨ Capital surplus		1,440.8			1,440.8			1,440.8			1,440.6			1,440.6			1,458.7			1.3	%		1.2	%		1,440.8			1,458.7			1.2	%
¨ Retained earnings		9,592.2			9,752.7			9,840.3			9,814.1			9,727.4			9,674.6			-0.5	%		-0.8	%		9,752.7			9,674.6			-0.8	%
¨ Capital adjustment		-1,930.6			-2,082.0			-2,045.4			-1,994.6			-2,099.0			-2,509.4			19.6	%		20.5	%		-2,082.0			-2,509.4			20.5	%
¡ Treasury stock		-1,388.2			-1,400.8			-1,388.2			-1,388.2			-1,552.5			-1,407.2			-9.4	%		0.5	%		-1,400.8			-1,407.2			0.5	%
¡ Gain/loss on disposal of treasury stock		-791.9			-791.9			-791.9			-791.7			-791.7			-791.3			0.0	%		-0.1	%		-791.9			-791.3			-0.1	%
¨ Accumulated Other Comprehensive Income		-3.5			32.1			52.2			6.3			-44.6			-31.5			-29.4	%		-198.1	%		32.1			-31.5			-198.1	%

Total interesting bearing debt		6,853.2			6,980.3			8,046.4			8,608.8			9,190.7			9,615.0			4.6	%		37.7	%		6,980.3			9,615.0			37.7	%
Net debt		5,413.1			5,675.2			6,068.1			6,359.4			6,600.7			6,461.9			-2.1	%		13.9	%		5,675.2			6,461.9			13.9	%
Net debt (including LT A/P)		5,823.6			6,090.3			6,487.9			6,783.9			6,899.6			6,764.2			-2.0	%		11.1	%		6,090.3			6,764.2			11.1	%

Debt/ equity ratio		111.8	%		114.8	%		119.4	%		122.8	%		130.3	%		142.4	%		12.1	%p		27.6	%p		114.8	%		142.4	%		27.6	%p
Net debt/ equity ratio		50.8	%		53.0	%		55.9	%		58.7	%		62.3	%		63.6	%		1.3	%p		10.6	%p		53.0	%		63.6	%		10.6	%p
Net debt/ equity ratio (including LT A/P)		54.6	%		56.9	%		59.8	%		62.6	%		65.2	%		66.6	%		1.4	%p		9.7	%p		56.9	%		66.6	%		9.7	%p

[Attachment]
2009 2Q KT Earnings Release — Guidance version

2. Operating Results

A. Wireless Revenue


(KRW bn)	’08-1Q		’08-2Q		’08-3Q		’08-4Q		’09-1Q		’09-2Q		QoQ			YoY			’08-1H		’09-1H		YoY
Wireless Revenue		2,310.2		2,515.7		2,200.9		2,100.3		2,183.0		2,507.9		14.9	%		-0.3	%		4,825.8		4,691.0		-2.8	%
¨ Service revenue		1,495.7		1,570.8		1,566.9		1,576.0		1,528.9		1,598.5		4.6	%		1.8	%		3,066.6		3,127.3		2.0	%
¡ Voice		991.9		1,034.4		1,031.8		1,043.8		1,011.1		1,037.9		2.7	%		0.3	%		2,026.3		2,049.0		1.1	%
Monthly base fee		569.4		577.8		591.8		601.2		605.8		619.2		2.2	%		7.2	%		1,147.2		1,225.0
Airtime charge		417.1		457.4		449.1		458.8		425.0		453.0		6.6	%		-1.0	%		874.5		878.0		0.4	%
Value added service		42.4		40.1		40.2		38.5		40.4		37.9		-6.2	%		-5.7	%		82.5		78.2		-5.2	%
Other voice revenue		18.9		22.2		23.1		26.6		25.2		21.7		-14.0	%		-2.3	%		41.1		46.9		14.2	%
(Voice discount)		-55.8		-63.1		-72.4		-81.3		-85.2		-93.9		10.2	%		48.8	%		-118.9		-179.1		50.6	%

¡ Data		250.7		265.1		272.0		270.8		275.4		288.0		4.6	%		8.6	%		515.8		563.4		9.2	%
Monthly base fee		83.1		86.4		87.4		88.9		94.1		96.8		2.8	%		12.0	%		169.5		190.9		12.7	%
Messaging (SMS, MMS)		75.4		81.8		84.4		86.0		83.5		89.2		6.8	%		9.1	%		157.2		172.8		9.9	%
Wireless data usage		61.4		65.5		67.1		66.0		67.4		70.9		5.2	%		8.2	%		126.9		138.3		8.9	%
Contents		22.5		22.7		23.9		21.2		20.2		20.2		0.1	%		-10.8	%		45.2		40.4		-10.5	%
Others		8.3		8.7		9.2		8.7		10.2		10.8		6.8	%		24.2	%		17.0		21.0		23.4	%

¡ Interconnection revenue		187.7		199.9		198.1		222.9		198.1		205.1		3.5	%		2.6	%		387.6		403.3		4.0	%

¡ Other revenue		65.4		71.4		65.0		38.6		44.2		67.5		52.5	%		-5.5	%		136.8		111.7		-18.4	%

¨ Handset sales		814.4		944.8		634.0		524.4		654.2		909.4		39.0	%		-3.7	%		1,759.3		1,563.6		-11.1	%


¡ Voice		2.6% QoQ rise due to growing subscriber numbers and seasonality. YoY 0.3% rise due to subscriber growth which offset loss from increased discounts from bundling and contract subscribers.

¡ Data		Grew 4.6% QoQ and 8.6% YoY from increased traffics in messaging service and flat rate data service users. YoY decreased in data contents revenue due to introduction of free contents fee products such as “Completely Free Data Package”.

B. Telephone Revenue


(KRW bn)	’08-1Q		’08-2Q		’08-3Q		’08-4Q		’09-1Q		’09-2Q		QoQ			YoY			’08-1H		’09-1H		YoY
Telephone Revenue		1,361.9		1,348.4		1,284.3		1,282.3		1,239.9		1,234.1		-0.5	%		-8.5	%		2,710.2		2,474.0		-8.7	%
¨ Subscriber connection		328.7		323.3		317.0		311.7		304.7		303.9		-0.3	%		-6.0	%		652.0		608.6		-6.6	%
¡ Activation & Installation fee		17.1		14.5		10.8		11.2		9.3		9.7		4.6	%		-33.0	%		31.6		19.0		-40.0	%
¡ Monthly base fee		270.0		267.4		264.8		261.3		255.4		248.0		-2.9	%		-7.3	%		537.4		503.3		-6.3	%
Telephone Revenue		41.6		41.4		41.4		39.2		40.1		46.3		15.5	%		11.8	%		83.0		86.3		4.0	%

¨ Local		218.6		212.1		206.3		215.5		197.6		206.0		4.2	%		-2.9	%		430.6		403.6		-6.3	%
¡ Local airtime charge		148.2		140.2		134.5		131.9		126.3		119.9		-5.1	%		-14.5	%		288.4		246.2		-14.6	%
¡ Local interconnection		19.8		21.2		20.7		19.3		17.4		20.2		16.4	%		-4.5	%		41.0		37.6		-8.2	%
¡ Others		50.6		50.7		51.0		64.3		53.9		65.8		22.1	%		29.9	%		101.3		119.8		18.2	%

¨ Domestic long distance		149.7		137.7		134.1		131.3		123.8		111.5		-9.9	%		-19.0	%		287.3		235.3		-18.1	%
¡ DLD airtime charge		142.9		132.9		128.6		125.9		117.6		109.2		-7.1	%		-17.8	%		275.8		226.8		-17.8	%
¡ DLD interconnection		6.6		4.5		5.3		5.2		6.0		2.1		-65.3	%		-53.1	%		11.0		8.1		-26.4	%
¡ Others		0.2		0.3		0.3		0.3		0.2		0.2		1.2	%		-10.5	%		0.5		0.5		-8.6	%

¨ LM revenue		364.0		358.4		340.5		330.2		305.1		297.5		-2.5	%		-17.0	%		722.4		602.6		-16.6	%

¨ International long distance		46.9		49.1		43.6		40.1		35.3		35.0		-0.9	%		-28.7	%		95.9		70.3		-26.8	%

¨ International long distance settlement		49.5		47.4		42.7		67.5		63.5		54.0		-15.0	%		13.9	%		96.9		117.5		21.2	%

¨ VoIP		10.2		21.5		19.6		23.7		41.5		50.9		22.7	%		136.8	%		31.7		92.3		191.2	%

¨ VAS		90.1		79.6		85.7		71.2		74.5		85.5		14.8	%		7.5	%		169.6		160.0		-5.6	%

¨ Public phones & 114 service		40.6		36.1		39.4		47.3		42.4		36.6		-13.8	%		1.4	%		76.7		79.0		3.0	%

¨ Others		63.6		83.5		55.3		43.7		51.4		53.3		3.6	%		-36.2	%		147.1		104.7		-28.8	%


¡ Local		QoQ rise in revenue due to increase in other local telephone revenue.

¡ LM		Decreased in number of subscribers and LM traffic resulted in QoQ and YoY fall.

¡ VoIP		QoQ and YoY increase due to increase in number of subscribers.

[Attachment]
2009 2Q KT Earnings Release — Guidance version

C. Internet Revenue


(KRW bn)	’08-1Q		’08-2Q		’08-3Q		’08-4Q		’09-1Q		’09-2Q		QoQ			YoY			’08-1H		’09-1H		YoY
Internet Revenue		633.5		686.3		689.0		655.4		640.7		646.2		0.9	%		-5.8	%		1,319.8		1,286.9		-2.5	%

Internet Access		527.2		538.8		533.1		527.0		518.2		524.1		1.1	%		-2.7	%		1,066.0		1,042.3		-2.2	%

¨ Broadband		500.5		507.8		508.9		500.2		483.8		481.1		-0.6	%		-5.3	%		1,008.3		964.9		-4.3	%
¨ Nespot		8.5		8.0		7.3		6.9		6.5		6.2		-4.7	%		-21.9	%		16.4		12.7		-22.5	%
¨ WiBro		17.5		22.5		15.4		20.2		27.4		35.3		28.9	%		56.8	%		40.1		62.7		56.5	%
¨ Others		0.7		0.5		1.5		-0.3		0.5		1.5		221.3	%		187.2	%		1.2		2.0		66.4	%

Internet Application		106.3		147.5		155.9		128.4		122.5		122.1		-0.3	%		-17.2	%		253.8		244.6		-3.6	%

¨ IDC		48.3		70.0		70.5		58.8		50.6		48.8		-3.5	%		-30.2	%		118.3		99.4		-16.0	%
¨ Bizmeka		36.6		47.3		51.8		33.8		33.0		33.9		2.8	%		-28.3	%		83.9		67.0		-20.2	%
¨ IPTV		5.0		9.6		14.3		17.6		19.9		21.1		6.3	%		119.9	%		14.6		41.0		179.8	%
¨ Others		16.3		20.6		19.3		18.2		19.0		18.2		-4.3	%		-11.7	%		37.0		37.2		0.7	%


¡ Internet Access		QoQ 1.1% rise due to increase in WiBro revenue. YoY 2.7% decrease due to ARPU contraction caused by stagnant internet user base and increased discounts for bundling and long-term contractors.

¡ Internet Application		QoQ and YoY decrease due to fall in one-time sale of servers in IDC revenue.

¡ IPTV		YoY increase due to rising ARPU and subscriber base.

D. Data Revenue


(KRW bn)	’08-1Q		’08-2Q		’08-3Q		’08-4Q		’09-1Q		’09-2Q		QoQ			YoY			’08-1H		’09-1H		YoY
Data Revenue		323.6		331.3		337.7		344.1		335.5		338.6		0.9	%		2.2	%		654.9		674.2		2.9	%
¨ Leased line		190.7		189.5		199.2		207.3		197.3		200.4		1.6	%		5.8	%		380.2		397.8		4.6	%
¡ Local		80.2		77.7		77.3		84.6		77.1		74.0		-4.0	%		-4.7	%		157.9		151.1		-4.3	%
¡ Domestic long distance		60.0		60.3		62.5		67.5		63.0		69.4		10.1	%		15.1	%		120.3		132.5		10.1	%
¡ International long distance		5.0		6.2		7.3		6.3		6.3		7.0		12.0	%		13.3	%		11.2		13.3		19.0	%
¡ Broadcasting & others		45.5		45.3		52.1		49.0		50.9		50.0		-1.8	%		10.3	%		90.8		100.9		11.1	%

¨ Data leased line		62.4		67.3		64.7		61.0		63.3		64.1		1.3	%		-4.8	%		129.8		127.4		-1.8	%

¨ VPN		14.8		15.7		16.6		16.9		16.2		17.0		4.9	%		8.7	%		30.4		33.3		9.3	%

¨ National network ATM		20.7		21.3		21.7		21.3		21.7		20.4		-5.9	%		-4.2	%		42.0		42.0		0.1	%

¨ Satellite		25.9		27.7		26.6		27.3		26.8		27.1		1.3	%		-2.1	%		53.6		53.9		0.6	%

¨ Others		9.1		9.8		9.0		10.2		10.2		9.5		-6.8	%		-3.0	%		18.9		19.7		4.3	%


¡ Data		QoQ rise due to increased leased line and VPN revenue.

[Attachment]
2009 2Q KT Earnings Release — Guidance version

E. Operating Expense


(KRW bn)	’08-1Q		’08-2Q		’08-3Q		’08-4Q		’09-1Q		’09-2Q		QoQ			YoY			’08-1H		’09-1H		YoY
Operating Expense		4,360.4		4,684.1		4,173.8		4,272.0		3,916.3		4,389.1		12.1	%		-6.3	%		9,044.5		8,305.4		-8.2	%
Labor Expense		744.8		680.3		659.1		757.9		660.0		703.7		6.6	%		3.4	%		1,425.2		1,363.6		-4.3	%
¨ Salaries & wages		523.3		490.6		484.7		486.2		494.1		470.0		-4.9	%		-4.2	%		1,013.9		964.1		-4.9	%
¨ Provision for retirement		105.0		61.3		53.1		121.1		45.0		71.5		58.9	%		16.5	%		166.3		116.4		-30.0	%
¨ Employee welfare		116.6		128.4		121.3		150.6		120.9		162.2		34.1	%		26.3	%		245.0		283.1		15.5	%

Commission		263.1		274.2		281.9		316.0		299.5		311.3		4.0	%		13.5	%		537.2		610.8		13.7	%

Sales Promotion		164.0		376.8		263.9		198.6		194.1		269.4		38.8	%		-28.5	%		540.8		463.6		-14.3	%

Sales Commission		714.4		644.8		467.2		536.7		503.9		544.4		8.0	%		-15.6	%		1,359.2		1,048.3		-22.9	%

Bad Debt Expenses		6.9		55.7		38.9		19.4		35.1		18.5		-47.3	%		-66.8	%		62.6		53.6		-14.3	%

Depreciation & Amortization		794.5		803.6		863.0		986.9		775.3		736.6		-5.0	%		-8.3	%		1,598.1		1,511.9		-5.4	%

Advertising		41.3		65.2		47.6		39.6		26.3		42.8		62.6	%		-34.3	%		106.5		69.1		-35.1	%

Repair & Maintenance		35.0		48.4		42.9		70.7		27.8		26.7		-4.0	%		-44.8	%		83.4		54.5		-34.6	%

Cost of Goods Sold		674.9		815.6		530.5		401.5		568.0		836.9		47.3	%		2.6	%		1,490.5		1,405.0		-5.7	%
¨ Cost of mobile handset sold		624.4		734.3		460.5		353.2		495.3		758.4		53.1	%		3.3	%		1,358.8		1,253.7		-7.7	%
¨ Others		50.4		81.3		70.0		48.3		72.8		78.5		7.8	%		-3.5	%		131.7		151.3		14.8	%

Cost of Service Provided		502.1		517.4		540.6		561.4		493.6		557.9		13.0	%		7.8	%		1,019.5		1,051.5		3.1	%
¨ Cost of service		128.1		118.6		136.8		167.6		121.0		137.0		13.2	%		15.5	%		246.7		258.0		4.6	%
¨ International long distance settlement cost		64.9		67.6		63.0		79.3		70.5		62.2		-11.7	%		-7.9	%		132.5		132.7		0.1	%
¨ Interconnection expense		293.7		308.7		317.3		281.2		272.9		319.2		17.0	%		3.4	%		602.4		592.2		-1.7	%
¨ Others		15.4		22.5		23.6		33.2		29.2		39.5		35.4	%		75.3	%		37.9		68.6		81.2	%

Research & Development		57.6		58.2		61.2		79.6		44.9		50.9		13.4	%		-12.5	%		115.8		95.8		-17.2	%

Activation, Installation & A/S Cost		96.5		92.1		98.7		86.9		73.1		83.9		14.9	%		-8.9	%		188.7		157.0		-16.8	%

Others		265.3		251.8		278.2		216.8		214.8		205.9		-4.1	%		-18.2	%		517.1		420.7		-18.6	%

CAPEX*		679.1		862.8		759.3		849.6		299.5		322.4		7.7	%		-62.6	%		1,541.9		621.9		-59.7	%


¡ Labor		QoQ and YoY increase in labor expense due to i) increased provision for retirement and ii) employee welfare cost due to one-off compensation as a result of 2009 labor negotiations, which offset decreased in salaries & wages affected by fall in performance payment.

¡ Commission		YoY 4.0% increase due to newly occurred commission payments to KT Data Systems.

[Attachment]
2009 2Q KT Earnings Release — Guidance version

F. Marketing Cost


(KRW bn)	’08-1Q		’08-2Q		’08-3Q		’08-4Q		’09-1Q		’09-2Q		QoQ			YoY			’08-1H		’09-1H		YoY
¨ Sales Promotion		164.0		376.8		263.9		198.6		194.1		269.4		38.8	%		-28.5	%		540.8		463.6		-14.3	%
¨ Sales Commision		714.4		644.8		467.2		536.7		503.9		544.4		8.0	%		-15.6	%		1,359.2		1,048.3		-22.9	%
¨ Advertising		41.3		65.2		47.6		39.6		26.3		42.8		62.6	%		-34.3	%		106.5		69.1		-35.1	%
(Profits from mobile handset sold)		-190.0		-210.5		-173.5		-171.1		-158.9		-151.0		-5.0	%		-28.3	%		-400.5		-309.9		-22.6	%

Total Marketing Cost		729.7		876.3		605.3		603.8		565.4		705.6		24.8	%		-19.5	%		1,606.0		1,271.0		-20.9	%


¡ Marketing Cost		YoY 19.5% decrease and QoQ 24.8% increase despite intensified competition in mobile market and newly added subscribers.

¡ Sales Promotion		QoQ 38.8% increase due to rise in subsidy from increased number of new subscribers. YoY 28.5% decrease due to effective cost execution in relatively stabilized market competition environment.

¡ Sales Commission		QoQ 8.0% increase due to rise in subscriber acquisition and retention cost as a resulf of intensified market competition.

G. Interconnection Expenses


(KRW bn)	’08-1Q		’08-2Q		’08-3Q		’08-4Q		’09-1Q		’09-2Q		QoQ			YoY			’08-1H		’09-1H		YoY
Interconnection Expenses		293.7		308.7		317.3		281.2		272.9		319.2		17.0	%		3.4	%		602.4		592.2		-1.7	%
¨ MM		151.6		175.5		174.5		175.6		150.8		171.9		14.0	%		-2.0	%		327.1		322.8		-1.3	%
¨ ML		11.7		14.3		10.1		10.0		6.4		10.8		68.9	%		-24.3	%		26.0		17.3		-33.6	%
¨ LM		109.0		99.2		113.5		82.2		98.9		113.2		14.5	%		14.2	%		208.2		212.1		1.9	%
¨ Others		21.4		19.7		19.2		13.4		16.8		23.3		38.4	%		18.3	%		41.1		40.1		-2.4	%

* Interconnection expenses may not move proportionally to voice traffic due to difference in estimation.

* Net Wireless Interconnection Profit

Interconnection Revenue		187.7		199.9		198.1		222.9		198.1		205.1		3.5	%		2.6	%		387.6		403.3		4.0	%
Interconnection Expense		163.3		189.8		184.6		185.6		157.3		182.8		16.2	%		-3.7	%		353.1		340.0		-3.7	%

Net Interconnection Profit		24.4		10.1		13.5		37.3		40.9		22.4		-45.3	%		120.8	%		34.6		63.2		83.0	%


¡ Interconnection		QoQ and YoY rise due to increase in voice traffic.

[Attachment]
2009 2Q KT Earnings Release — Guidance version

H. Non-operating Income


(KRW bn)	’08-1Q		’08-2Q		’08-3Q		’08-4Q		’09-1Q		’09-2Q		QoQ			YoY			’08-1H		’09-1H		YoY
Non-operating Income		166.5		160.6		371.7		356.3		252.2		150.1		-40.5	%		-6.5	%		327.1		402.4		23.0	%
¨ Interest Income		22.9		33.0		25.0		47.4		37.8		61.5		62.7	%		86.5	%		55.8		99.3		77.9	%
¨ Gain on foreign currency transaction		6.6		7.5		18.2		23.7		15.1		5.9		-60.6	%		-20.8	%		14.1		21.0		49.6	%
¨ Gain on foreign currency translation		11.1		6.6		14.9		4.7		18.4		0.1		-99.6	%		-99.0	%		17.7		18.5		4.4	%
¨ Gain on Equity Method		19.4		32.6		15.6		7.5		19.4		25.9		33.8	%		-20.4	%		51.9		45.3		-12.8	%
¨ Gain on disposal of tangible assets		0.5		1.7		1.1		0.8		0.5		5.4		994.8	%		220.7	%		2.2		5.9		173.1	%
¨ Others		106.2		79.3		296.8		272.3		161.1		51.3		-68.2	%		-35.3	%		185.4		212.4		14.5	%


¡ Interest Income		QoQ increase due to reflection of 16.5bn KRW of interest income from reimbursed FTC fines. *18bn KRW net reimbursed fine is included in other non-operating income.

I. Non-operating Expense


(KRW bn)	’08-1Q		’08-2Q		’08-3Q		’08-4Q		’09-1Q		’09-2Q		QoQ			YoY			’08-1H		’09-1H		YoY
Non-operating Expense		339.5		341.4		580.9		576.2		561.1		35.8		-93.6	%		-89.5	%		680.9		596.9		-12.3	%
¨ Interest Expense		100.3		111.3		110.5		139.9		130.5		108.8		-16.7	%		-2.3	%		211.6		239.3		13.1	%
¨ Loss on foreign currency transaction		3.7		6.4		12.9		23.5		13.3		9.3		-30.0	%		45.1	%		10.2		22.7		123.0	%
¨ Loss on foreign currency translation		117.3		104.4		354.8		213.9		288.1		-221.3		-176.8	%		-312.0	%		221.7		66.8		-69.9	%
¨ Loss on Equity Method		51.2		26.3		31.3		32.2		54.2		31.7		-41.6	%		20.7	%		77.4		85.9		11.0	%
¨ Loss on disposal of tangible assets		10.8		19.6		19.2		44.1		17.4		32.5		86.4	%		65.7	%		30.4		49.9		64.4	%
¨ Others		56.2		73.4		52.3		122.7		57.5		74.8		30.1	%		1.9	%		129.6		132.3		2.1	%


¡ Interest Expense		QoQ 16.7% decrease from diminished interest burden on USD debts as foreign exchange rate stabilized.

¡ Loss on For.Cur. Transaction		Won/US$ appreciation within the quarter (1377.1Won/$®1284.7Won/$) resulted in huge reduction in FX translation loss.

¡ Loss on Disposal of Tangible Assets		Increased due to disposal of telecom equipment and scrapping of some fixed lines.


	Dated: August 14, 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

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