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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 December 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-

SUMMARY OF 2009 THIRD QUARTER BUSINESS REPORT
(From January 1, 2009 to September 30, 2009)

THIS IS A SUMMARY OF THE 2009 THIRD QUARTER REPORT ORIGINALLY PREPARED IN KOREAN AND IN SUCH FORM AS REQUIRED BY THE KOREAN FINANCIAL SUPERVISORY COMMISSION. IN THE TRANSLATION PROCESS, SOME PARTS OF THE REPORT WERE REFORMATTED, REARRANGED OR SUMMARIZED FOR THE CONVENIENCE OF READERS.

UNLESS EXPRESSLY STATED OTHERWISE, ALL INFORMATION CONTAINED HEREIN IS PRESENTED ON A NON-CONSOLIDATED BASIS IN ACCORDANCE WITH ACCOUNTING PRINCIPLES GENERALLY ACCEPTED IN KOREA, OR KOREAN GAAP, WHICH DIFFER IN CERTAIN RESPECTS FROM GENERALLY ACCEPTED ACCOUNTING PRINCIPLES IN CERTAIN OTHER COUNTRIES, INCLUDING THE UNITED STATES. WE HAVE MADE NO ATTEMPT TO IDENTIFY OR QUANTIFY THE IMPACT OF THESE DIFFERENCES.

I. Corporate General

1. General Information

A. Date of Incorporation

KT Corporation (“KT”) was incorporated on December 10, 1981 under the Korea Telecom Act with the purpose of offering telecommunication services business. On December 23, 1998 KT was listed on the Korea Stock Exchange (later, Korea Exchange).

B. Postal address of Headquarters, telephone and company website

1) Postal address :
206 Jungja-dong,
Bundang-gu, Sungnam City, Gyunggi-do
463-711 Korea

2) Telephone : +82 31 727 0114

3) Company website : http://www.kt.com

C. Main Business

We are a telecommunications service provider providing fixed-line, broadband internet, mobile services. In an effort to maintain our leadership in the telecommunication market, we have launched new services such as IP-TV, VoIP, WiBRO and FMC (Fixed Mobile Convergence) responding to the recent industry trends of convergence between telecommunications and broadcasting and between fixed and mobile communication. In part due to the merger with former KT Freetel, we have amended our articles of incorporation at the extraordinary shareholders meeting held on March 27, 2009. As of the end of the third quarter of 2009, our business purpose, as specified in our articles of incorporation, is to engage in the following business activities:


Business purpose		Other
1. Information and communications business;

2. New media business;

3. Development and sale of software and contents;

4. Sale and distribution of information communication equipment

5. Testing and inspection of information communication equipment, device or facilities;

6. Advertisement business;

7. Retail business via telephone, mail order or online;

8. IT facility construction business and electrical construction business;

9. Real estate and housing business;

10. Electronic banking and finance business;

11. Education and learning service business;

12. Security service business (machinery system surveillance service, Facilities security service, etc);

13. Research and technical development, education, training and promotion, overseas businesses, and export and import, manufacture and distribution related to activities mentioned in Subparagraphs 1 through 12; and


Business purpose		Other
14. Frequency-based telecommunications services and other telecommunications services		Added on March 27, 2009

15. Value-added telecommunications business		Added on March 27, 2009

16. Manufacture, provision (screening) and distribution of contents such as musical records, music videos, movies, videos and games		Added on March 27, 2009

17. Issuance and management of pre-paid electronic payment instruments, and businesses related to electronic finance such as payment gateway services		Added on March 27, 2009

18. Sales and leasing of equipment and facilities related to the activities mentioned in Subparagraphs 14 through 17		Added on March 27, 2009

19. Any overseas business or export and import business related to activities mentioned in Subparagraphs 14 through 18		Added on March 27, 2009

20. Tourism		Added on March 27, 2009

21. Insurance agency business		Added on March 27, 2009

22. New and renewable energy and energy generation business		Added on March 27, 2009

23. Any and all other activities or businesses incidental to or necessary for attainment of the foregoing.		Amended on March 27, 2009

D. Affiliated Companies

(1) Name of Group : KT

(2) Affiliated Companies (as of November 13, 2009)


		Financial
		year		Listed/
No.	Name	ended on	Primary business	Unlisted
1	KT	Dec. 31	Telecommunication business	Listed on KRX

2	KT Powertel Co., Ltd.	Dec. 31	Trunk radio system business	Unlisted

3	KT Networks Corporation	Dec. 31	Telecommunication, specific service provider and value-added service provider	Unlisted

4	KT Linkus Co., Ltd.	Dec. 31	Public telephone maintenance	Unlisted

5	KT Hitel Co., Ltd.	Dec. 31	Data communication	Listed on KOSDAQ

6	KT Submarine Co., LTd.	Dec. 31	Submarine cable construction and maintenance	Listed on KOSDAQ

7	KT Commerce Inc.	Dec. 31	Online commerce (B2B, B2B service)	Unlisted

8	KT Technologies	Dec. 31	Mobile handset development	Unlisted


		Financial
		year		Listed/
No.	Name	ended on	Primary business	Unlisted
9	KT M Hows Co., Ltd.	Dec. 31	Mobile marketing	Unlisted

10	KT Rental Co., Ltd.	Dec. 31	Rental Service	Unlisted

11	Sidus FNH Corporation	Dec. 31	Movie production	Unlisted

12	Telecop Service Co., Ltd.	Dec. 31	Security service	Unlisted

13	KT Capital Co., Ltd.	Dec. 31	Financing service	Unlisted

14	Vanguard Private Equity Fund	Dec. 31	Financing service	Unlisted

15	KT M&S Co., Ltd.	Dec. 31	Telecommunication devices distribution business	Unlisted

16	Nasmedia Co., Ltd.	Dec. 31	Online advertisement business	Unlisted

17	KT Music Co., Ltd.	Dec. 31	Entertainment business	Listed on KOSDAQ

18	Doremi Media Co., Ltd.	Dec. 31	Recording device (magneto-optical disk) and music disc manufacture	Unlisted

19	Music City Media Co., Ltd.	Dec. 31	Movie, broadcasting and performance business	Unlisted

20	Parangoyangi Co., Ltd.	Dec. 31	Movie, broadcasting and performance business	Unlisted

21	D&G Star Co., Ltd.	Dec. 31	Movie, broadcasting and performance business	Unlisted

22	Softnics, Inc.	Dec. 31	Software development and sales	Unlisted

23	JungBoPremiumEdu Co., Ltd.	Dec. 31	Online education business	Unlisted

24	KTDS Co., Ltd. (f/k/a KT Data System Co., Ltd.)	Dec. 31	Management, supply and advisory services of information technology systems	Unlisted

- On August 27, 2009, Olive Nine Co. Ltd. and its related companies (Olive Nine Creative Co. Ltd., The Contents Entertainment Co. Ltd. and Olive Nine Entertainment Co. Ltd.) were excluded as affiliated companies.

- On September 1, 2009, Vanguard Private Equity Fund was included as an affiliated company.

- On October 16, 2009, Doremi Media Co., Ltd., Doremi Music Publishing Co. Ltd. and Parangoyangi Co. Ltd. were excluded as affiliated companies.

[Foreign Affiliated Companies]


		Financial
		year		Listed/
No.	Name	ended on	Primary business	Unlisted
1	Korea Telecom America Inc.	Dec.31	Foreign telecommunication business	Unlisted

2	Mongolian Telecommunications	Dec. 31	Foreign telecommunication business	Listed

3	New Telephone Company Inc.	Dec. 31	Foreign telecommunication business	Unlisted

4	KT Japan, Co., Ltd.	Dec. 31	Foreign telecommunication business	Unlisted

5	KT China Co., Ltd.	Dec. 31	Foreign telecommunication business	Unlisted

6	Super iMax LLC	Dec. 31	Foreign telecommunication business	Unlisted

7	East Telecom LLC	Dec. 31	Foreign telecommunication business	Unlisted

8	KTSC Investment Management B.V.	Dec. 31	Foreign telecommunication business	Unlisted

E. Credit Rating

(1) Overseas Credit Rating


	Assessed	Credit Rating
Date of	Securities,	of Assessed	Assessing Company	Assessment
Assessment	etc.	Securities	(Scale of Rating)	Type
May 22, 2009	—	A3	Moody’s: U.S. (Aaa, Aa1, Aa2, Aa3, A1, ~ C)	Annual Assessment
November 26, 2008	—	A	Fitch: U.S. (AAA, AA+, AA, AA-, A, ~ D)	Annual Assessment
July 14, 2008	—	A3	Moody’s: U.S. (Aaa, Aa1, Aa2, Aa3, A1, ~ C)	Annual Assessment
June 30, 2008	—	A-	S&P: U.S. (AAA, AA+, AA, AA-, A, ~ D)	Annual Assessment
July 2, 2007	—	A	Fitch: U.S. (AAA, AA+, AA, AA-, A, ~ D)	Annual Assessment
April 2, 2007	2007 Global Bond	A3	Moody’s: U.S. (Aaa, Aa1, Aa2, Aa3, A1, ~ C)	Special Assessment
April 2, 2007	2007 Global Bond	A-	S&P: U.S. (AAA, AA+, AA, AA-, A, ~ D)	Special Assessment

(2) Domestic Credit Rating


	Assessed	Credit Rating
Date of	Securities,	of Assessed	Assessing Company	Assessment
Assessment	etc.	Securities	(Scale of Rating)	Type
June 30, 2009	Commercial Paper	A1	Korea Information Service Inc.	Regular
June 26, 2009	Commercial Paper	A1	Korea Ratings Corporation	Regular
May 20, 2009	Corporate Bond	AAA	Korea Information Service Inc., National Information & Credit Evaluation Inc.	Regular
May 19, 2009	Corporate Bond	AAA	Korea Ratings Corporation	Regular
February 19, 2009	Corporate Bond	AAA	Korea Information Service Inc., National Information & Credit Evaluation Inc., Korea Ratings Corporation	Regular
December 19, 2008	Corporate Bond	AAA	Same as above	Regular
July 28, 2008	Corporate Bond	AAA	Same as above	Regular
June 13, 2008	Commercial Paper	A1	Korea Ratings Corporation	Regular
June 11, 2008	Commercial Paper	A1	National Information & Credit Evaluation Inc.	Regular
March 20, 2008	Corporate Bond	AAA	Korea Information Service Inc., National Information & Credit Evaluation Inc., Korea Ratings Corporation	Regular
February 18, 2008	Corporate Bond	AAA	Same as above	Regular
December 27, 2007	Corporate Bond	AAA	Same as above	Regular
June 27, 2007	Commercial Paper	A1	Korea Information Service Inc.	Regular
June 21, 2007	Commercial Paper	A1	National Information & Credit Evaluation Inc.	Regular
March 22, 2007	Corporate Bond	AAA	Korea Information Service Inc., National Information & Credit Evaluation Inc., Korea Ratings Corporation	Regular

2. History

- Major Changes in Management


	Before Change (February 29, 2008)		After Change (March 6, 2009)
		Title or			Title or
	Name	position		Name	position
	Joong-Su Nam	President and CEO		Suk Chae Lee	President and CEO
Standing Directors	Jong Lok Yoon	Director	Standing Directors	Sang Hoon Lee	Director
	Jeong Soo Suh	Director		Hyun-Myung Pyo	Director

	Jeong Ro Yoon	Audit Committee Member		Jeong Suk Koh	—
	Kon Sik Kim	—		Si-Chin Kang	Audit Committee Member
	Do Hwan Kim	Audit Committee Member		In-Man Song	Audit Committee Member
Outside Directors	Jong Kyoo Yoon	Audit Committee Member	Outside Directors	Joon Park	Audit Committee Member
	Paul C. Yi	—		E. Han Kim	Audit Committee Member
	Jeong Suk Koh	—		Choon Ho Lee	—
	Gyu Taeg Oh	Audit Committee Member		Jeung Soo Huh	—

- At the annual general meeting of shareholders held on March 27, 2009, our shareholders resolved to amend our articles of incorporation to add KT Freetel’s business purposes, including frequency-based telecommunication services and new and renewable energy and energy generation business (to pursue new growth opportunities in the alternative energy industry), to the list of our business purposes.

3. Change in Capital

A. Increase (decrease) status

(Unit: Won, share)

Date of share

Method of

issuance

Details of change

Price

per

Type

Number

Par value

Note

June 2, 2009

Common

700,108

5,000

New issuance as a result of the merger with former KT Freetel


*		The company has issued 700,108 new shares as a result of the merger with former KT Freetel, which increased its capital by approximately Won 3.5 billion.

**		The date of issuance is the date of the merger (June 1, 2009)

(Unit: Won)

Type

Before change

Increase

After change

Capital

1,560,998,295,000

3,500,540,000

1,564,498,835,000

4. Total Number of Shares and Others

A. Total Number of Shares



(As of November 13, 2009)		(Unit: shares)


	Type of Shares
Category	Common Shares		Total
I. Total Number of Authorized Shares		1,000,000,000		1,000,000,000
II. Total Number of Issued Shares		312,899,767		312,899,767
III. Total Number of Shares Reduced		51,787,959		51,787,959
1. Reduction of Capital		—		—
2. Share Retirement		51,787,959		51,787,959
3. Redemption of Redeemable Shares		—		—
4. Other		—		—
IV. Current Number of Issued Shares (II – III)		261,111,808		261,111,808
V. Number of Treasury Shares		26,368,562		26,368,562
VI. Current Number of Issued and Outstanding Shares		234,747,223		234,747,223


*		Total number of treasury shares includes 8,453,222 shares that have been escrowed with the Korea Depositary Service (KDS) to provide for the exchange of exchangeable bonds (“EB”) that we have issued. Excluding treasury shares escrowed with KDS, the company has 17,915,340 treasury shares.

B. Acquisition and Disposal of Treasury Shares

(1) Acquisition and Disposal of Treasury Shares



(As of November 13, 2009)		(Unit: shares)


Method of		Beginning of		Acquisition		Disposition		Retirement
Acquisition	Type	Term		(+)		(-)		(-)		End of Term
Direct Acquisition pursuant to Article 165-2 of the Financial Investment Services and Capital Markets Act (“FSCMA”)	Common Share		70,241,234				2,594				70,238,640
	Preferred Share		—		—		—		—		—
Direct Acquisition for Reasons other than Article 165-2 of the FSCMA	Common Share		—		13,624,232		45,629,480		13,124,000		(45,129,248	)
	Preferred Share		—		—		—		—		—
Subtotal	Common Share		70,241,234		13,624,232		45,632,074		13,124,000		25,109,392
	Preferred Share		—		—		—		—		—
Indirect Acquisition (e.g. Trust Contract)	Common Share		1,259,170		—		—		—		1,259,170
	Preferred Share		—		—		—		—		—

Total	Common Share		71,500,404		13,624,232		45,632,074		13,124,000		26,368,562

	Preferred Share		—		—		—		—		—


*		Details of the change in our treasury shares are as follows:

1) Acquisition of treasury shares (13,620,255 shares)

- March 10~April 17, 2009: Direct acquisition of shares for share retirement (13,124,000 shares)

- May 15, 2009: Acquisition of appraising shares in relation to merger (451,038 shares)

- July 7, 2009: Acquisition of fractional shares (45,217 shares)

- September 23, 2009 : Acquisition of appraising shares in relation to the merger between former KTF and former ICOM (7 shares)

- October 7, 2009 : Acquisition of appraising shares in relation to the merger between former KTF and former ICOM (15 shares)

- October 16, 2009 : Acquisition of appraising shares in relation to the merger with former KTF (after withdrawing requests to court for an adjustment of the appraisal price – 3,955 shares)

2) Disposal of treasury shares (45,632,074 shares)

- March 3, 2009: Performance based payments to members of the Board of Directors (2,594 shares)

- June 22, 2009: Disposal of shares in exchange for KTF shares (45,629,480 shares)

3) Retirement of treasury shares (13,124,000 shares)

- April 22, 2009: Retirement of shares (13,124,000 shares)

5. Voting Rights



(As of November 13, 2009)		(Unit: Shares)


Category			Number of Shares		Note
Total Issued Shares (A)	Common Share			261,111,808		—
	Preferred Share			—		—
Shares without Voting Rights (B)	Common Share			26,371,816	Treasury shares
	Preferred Share			—	Treasury shares
Shares with Restricted Voting Rights under the Stock Exchange Act and Other Laws (C)		—		—		—
Shares with Reestablished Voting Rights (D)		—		—		—
Shares with Exercisable Voting Rights	Common Share			234,739,992		—
(E = A – B – C + D)	Preferred Share			—		—


(1)		Shares without voting rights under the Korean Commercial Code: (i) 26,368,562 shares, including treasury shares and shares held through treasury stock funds and (ii) 3,254 cross-holding shares.

6. Matters on Dividends and Others

A. Matters on Dividends

Our shareholder return policy is to pay our shareholders at least 50% or more of the adjusted net profit of the current term (through cash dividends and/or acquisition of treasury stock, etc.).

B. Dividends Paid during the Past Three Fiscal Years


	First Three
	Quarters of
Category	2009		2008		2007
Par Value per Share (Won)		5,000		5,000		5,000
Net Profit of the Current Term (in millions of Won)		947,036		449,810		957,623
Net Profit per Share (Won)		4,429		2,217		4,635
Year-end Cash Dividend (in millions of Won)		—		226,280		407,374
Year-end Share Dividend (in millions of Won)		—		—		—
Cash Dividend Propensity (%)		—		50.3		42.5

II. Details of Business

1. Overview

A. Present Conditions of the Industry

(1) Characteristics of the Industry

Current markets for fixed line telephones, broadband Internet and mobile communications in Korea have reached their maturity. With technical advances and changes in customer demands, the communications industry has recently been moving toward convergence between different technologies and industries, such as convergence between fixed-lined communications and mobile communications and between the telecommunications industry and the broadcasting industry. These converged media businesses, represented by IPTV, opens up new opportunities for telecommunications carriers as they bridge telecommunications and broadcasting industries. In the mobile communications market, the transition to 3G will become a turning point in shaping a new competitive landscape, replacing the existing competition in the 2G market. In the saturated communications market, increasing customer value has become increasingly more important as fixed-line communications carriers not only offer integrated services such as the TPS (or Triple Play Service) or QPS (or Quadruple Play Service), but also recently began offering FMC (or Fixed Mobile Convergence) in a continuous effort to offer additional benefits to their customers.

(2) Growth of the Industry

(Unit: 1,000 persons)


	December		December		December		December		December		September
Category	31, 2004		31, 2005		31, 2006		31, 2007		31, 2008		30, 2009
Broadband Internet Subscribers		11,921		12,191		14,043		14,710		15,475		16,041
Local Telephone Subscribers		22,871		22,920		23,119		23,130		22,132		20,554
Mobile Phone Subscribers		36,586		38,342		40,197		43,498		45,607		47,071


*		From 2004 to 2007, data was provided by the Ministry of Information and Communication (www.mic.go.kr).

*		Data as of December 31, 2008 was provided by the Korea Communications Commission (www.kcc.go.kr).

*		Data for Broadband Internet Subscribers is as of the end of August 2009.

(3) Characteristics of Market Fluctuations

The demand for communications services does not fluctuate greatly as such services are regarded as a necessity in modern life. However, if the Korean economy slows and continues to do so in the future, it could have an adverse impact on KT’s business activities.

(4) Competition

(a) Competing Companies

	•		Local calls: SK Broadband, LG Dacom, etc.

	•		Long distance calls: LG Dacom, Onse Telecom, SK Broadband, SK Telink, etc.

	•		International calls: LG Dacom, Onse Telecom, SK Broadband, SK Telink, etc.

	•		Broadband Internet: SK Broadband, LG Powercom, LG Dacom, Service Operators (including cable television, relay wired broadcasting operators), etc.

	•		Mobile communications: SK Telecom, LG Telecom, etc.

	•		Internet telephones using Internet Protocol (VoIP): SK Broadband, SK Networks, SK Telink, Samsung Networks, LG Dacom, LG Powercom, Korea Cable Telecom, etc.

	•		IPTV: SK Broadband, LG Dacom

	•		Mobile Internet (WiBro service): SK Telecom

(b) Market Entry Requirements

	•		Communication service providers: business operations must be approved by the Korea Communications Commission

	•		Specific telecommunications service providers: registration is required

	•		Value-added telecommunications service providers: reporting is required

(5) Relevant Laws and Government Regulations

(a) Relevant Laws

	•		Telecommunications policy-related laws

			- Telecommunications Basic Act, Telecommunications Business Act, etc.

	•		Radio and broadcasting policy-related laws

			- Radio Regulation Law

	•		Informatization related laws

			- Promotion of Information and Communication Basic Act, etc.

	•		Broadcast related laws

			- Broadcasting Law, etc.

	•		Others

- Internet Multimedia Broadcasting Business Law (IP-TV related)

(b) Government Regulations

The Korea Communications Commission is responsible for managing the convergence between broadcasting and communications, as well as assuring their independence and their role of providing public service. The commission is also responsible for issuing relevant licenses, permits, approvals, policy enactments and other matters relating to the promotion of broadcasting and communications and the enhancement of their global competitiveness.

B. Current Status of KT

(1) Operations Outlook and Classification of Business

(a) Operations Outlook

The Korean communications market is currently experiencing slow growth as leading services, including fixed-line telephones, broadband Internet and mobile communications, have reached maturity, caused in part by intense competition in the industry. We are no exception to this industry trend as our local telephone, QOOK Internet broadband Internet access and mobile services are all facing difficult business climates due to: (i) increase in fixed-to-mobile substitution trend and the increasing popularity of VoIP market; (ii) aggressive marketing and price cutting measures from competitors of broadband Internet access service providers; and (iii) a mobile market environment in which competitive elements have become diversified as service providers not only compete with handset subsidies but also on tariffs, handsets and convergent services.

Despite the unfavorable environment, we have made company-wide efforts to reduce costs based on quality management and treatment of customer value innovation as our top priority. We have launched a new brand “QOOK”, for all the telecommunication services that we provide to our household customers, in order to establish an easier and efficient communication channel with our customers.

As of the end of September 2009, we had approximately 6.8 million broadband Internet subscribers, approximately 18.6 million local telephony subscribers (including ISDN subscribers and group telephony) and approximately 14.9 million KT mobile subscribers.

In the future, we plan to promote various rate plans to address different customer calling patterns, as well as promote bundled-services (economic efficiency), reiterate value of the fix-line (well-being) and promote digital Ann phone (convenience) in our fixed-line telephone business and provide differentiated VoIP services to address the proliferation of internet phones.

In the broadband Internet arena, we will aim to improve customer value from the viewpoint of our customers with continued provisions of the FTTH (Fiber-To-The-Home) services. As for our mobile business, we will focus on continuously expanding the subscriber base of our long-term subscription program “Show-King Sponsor”, which provides differentiated handset subsidies and usage charge discounts, in order to achieve marketing cost effectiveness and provide actual cost reduction benefits to our customers.

We plan to further expand our wireless broadband Internet access service business, or SHOW WiBro, to the greater Seoul metropolitan area and will aim to become a leader in the Mobile 2.0 era, the next generation of two-way communication mobile environment.

In addition, our IPTV business will focus on actively catering to the TV portal market through its QOOK TV service and, in the long term, by pursuing a leadership position in the broadcasting convergence market.

We will also aim to expand our market share by enhancing our network-based care services, offering on- and off-line total solutions while expanding our bizmeka services to address individual needs, such as medical and education services.

In particular, we will strive to combine our collective resources and diverse service offerings to periodically develop and introduce new package of services that we believe will provide a new growth momentum for us.

(b) Operations Subject to Disclosure

KT’s main area of business is the telecommunications sector under the Korea Standard Industry Code.

(2) Market Share


		Market Share for Each Term (%)
		First Three
		Quarters
		of 28th
		Fiscal		27th Fiscal		26th Fiscal		25th Fiscal
		Year		Year		Year		Year
Category	Operator	(2009)		(2008)		(2007)		(2006)
Local Telephone	KT		90.2		89.8		90.4		92.1
(On the Basis of Number of Subscribers)	SK Broadband		8.1		8.7		8.8		7.5
	LG Dacom		1.7		1.5		0.8		0.4

Long Distance Telephone	KT		86.2		85.2		85.4		85.6
(On the Basis of Number of Subscribers)	LG Dacom		3.4		3.7		3.9		4.8
	Onse Telecom		1.6		1.7		1.8		2.1
	SK Broadband		6.8		7.8		7.4		6.1
	SK Telink		1.9		1.6		1.5		1.4

Mobile	KT		31.3		31.5		31.5		32.1
(On the Basis of Number of Subscribers)	SK Telecom		50.6		50.5		50.5		50.4
	LG Telecom		18.1		18.0		18.0		17.5

Broadband Internet Subscriber	KT		42.2		43.4		44.3		45.2
(On the Basis of Number of Subscribers)	SK Broadband		23.6		22.9		24.9		25.7
	LG Powercom		15.3		14.1		11.7		8.6
	Service Operators		17.7		19.6		17.5		16.6

* In 2006 and 2007, data was provided by the Ministry of Information and Communication (www.mic.go.kr).

* In 2008, data was provided by the Korea Communications Commission (www.kcc.go.kr).

* Data for broadband Internet market share for the 3rd quarter of 2009 is as of the end of August 2009.

(3) Market Characteristics

Our local telephone business provides universal services for homes and businesses, and despite increased marketing efforts by competitors, we maintained approximately 90.2% of the market share as of the end of September, 2009. Although Public Switched Telephone Network (PSTN) sales and the number of PSTN subscribers are on a gradual decline due to the increased use of mobile phones over traditional phones and the advancement of VoIP services as well as the expansion of local number portability, we are committed to fending off a further decline in sales by (i) increasing Average Revenue per User (ARPU) through sales of additional services, (ii) increasing customer satisfaction by offering optional calling plans and (iii) retaining existing customers through customer relationship management activities.

As for broadband Internet, we are seeking to improve our ARPU by providing competitive rates for our high-quality products, aided by the reorganization of our product lineup. We are the leader in terms of both speed and quality in a market with intense price competition, mostly through our dominance in supplying FTTH services. Our ultimate goal is to be a market leader in offering next generation services, such as IPTV, through achieving 100 mega-bites access for ordinary households.

As for the mobile services, despite facing a slow growing and highly competitive market for attracting new customers, we are continuously focusing on expanding our customer base by attracting new subscribers for our bundled services and “Show King Sponsor” program.

(4) Status and Forecast of New Business

In order to overcome present market obstacles of growth limits of the voice business market and the sluggish growth of the broadband Internet access services, we have been actively involved in developing a wide range of new businesses with growth prospects.

We aim to create a digital entertainment world that will enrich our customers’ lives through a ubiquitous environment which can be accessed through various terminals anytime anywhere; to offer customers convenience solutions that they may freely use without the time or location limitations, and to offer business solutions necessary to raise corporate efficiency and competitiveness. By excelling in these new business areas, we strive to become a company that accomplishes customer value innovation while realizing our customers’ objectives.

Our SHOW WiBro (Wireless Broadband and mobile Internet) operation enables portable broadband Internet access services, allowing universal Internet access with high transmission speeds through personal handsets or laptop computers. WiBro was first commercialized in the world using Korean technology, and we successfully provided commercial WiBro services in limited areas in 2006. Since April 2007, we have actively been seeking to provide WiBro services in the Seoul area, including various major buildings and university campuses in the Seoul metropolitan area. In October 2008, WiBro service in the Seoul metropolitan area was extended to 19 neighbouring cities with approximately twice the service speed as before.

Currently, anyone may utilize SHOW WiBro services with ultra-mobile PC (UMPC), smart phone-type WiBro phones, Portable Media Players, navigation devices or Dongle, a USB

device that can be connected to any laptop computer. In addition, through the wireless sharing device “egg”, which was launched at beginning of this year, customers can enjoy SHOW WiBro through a greater variety of Wi-Fi devices. We will continue to try and expand our array of digital devices that are compatible with WiBro services.

We will promote a mobile culture for our customers through SHOW WiBro, which shall offer not only the basic Internet access function but also other individually tailored services, such as combined webmail, two-way visual communications, remote controlled home computers, information services linked with real-time search functions and mobile UCC to its users. Through SHOW WiBro, we aim to lead the Mobile 2.0 generation, the next-generation mobile environment, by accelerating the introduction of new bundled services that utilize mobile 3G technology.

The QOOK&SHOW launched in September 2009 is our mobile converged service. ‘QOOK&SHOW’, which provides WCDMA and Wi-Fi services to a single handset, allow subscribers to use mobile services at a low price. The service enables WCDMA to be used outdoors, while VoIP and data services can be used indoors through Wi-Fi technology. KT expects to enhance customers convenience, reduce tariffs and promote the mobile internet data market by launching three FMC handsets, including a handset with triple module capabilities -(WCDMA, Wi-Fi and WiBro)- by the end of the year. Similar to voice communication being our past growth engine for our mobile service, we believe that mobile Internet data services will become our new growth engine for the mobile service. In order to promote mobile Internet data usage, we plan to reduce mobile Internet data tariffs, develop new handsets and expand the distribution of mobile Internet data software through the promotion of an open market platform. In addition, in an effort to achieve our vision of “Convergence-based Global IT Leader”, we plan to continuously promote innovative convergence businesses by converging services and contents in our “four screens” (mobile, broadband, IPTV and VoIP phone) and expanding our home network services.

IP-TV is a service that integrates telecommunications and broadcasting services, brought about by the acceleration in the development of broadband Internet network and multimedia contents in the era where traditional industries converge. IP-TV is a service that provides traditional Internet services, such as information searches, games, message exchanges, and shopping with VOD (Video on Demand) services, which allow users to watch a variety of contents, such as movies, dramas and educational programs, at any time.

From the second half of 2007 to October of 2008, only non-real time VOD services and interactive services were provided due to regulatory restrictions. However, after the passing of the Korean Internet Multimedia Broadcasting Business Law by the National Assembly in December 2007 and the granting of the IP-TV business license to KT on September 8, 2008, we have been able to provide enhanced IP-TV service, including real-time broadcasting starting November 17, 2008 for the first time in Korea. We are taking every step to provide new services such as providing nationwide QOOK TV services starting January 9, 2009, and expanding our real-time broadcasting channels up to 72 channels on July 20, 2009. By providing real IP-TV services, we will promote the convergence in telecommunications and broadcasting and grow as a digital entertainment company. In particular, we plan to minimize social and cultural gaps

within the society, improve the quality of life and ultimately improve national competitiveness by (i) encouraging our customers to use media more actively, (ii) establishing an environment that promotes telecommunications related industry including contents, set-top-box (STB) and platform equipment productions, (iii) developing a business model that involves public institutions such as public schools and military and (iv) developing media-poor areas.

Our Internet phone service provides competitive voice transmission services and differentiated video communication services in order to maintain our existing fixed-line customer base and to also attract new customers. In the third quarter of the year, we focused on promoting our voice transmission service and secured 1.4 million subscribers as of September 2009. In the video communication service arena, we are gradually expanding our customer base by simultaneously targeting mass customers and high-income customers by promoting two distinctive device lineups: “economic”(4-inch LCD) and “prestige”(7-inch LCD). Marketing leverage is achieved by bundling voice transmission service with our PSTN and QOOK Internet services as well as by securing customer base through our subscription agreement policies. In particular, increase in service usage is expected from the “PSTN+VoIP” bundling customers who are provided with an additional VoIP device that is very user-friendly. In the video communication service arena, we are focusing on (i) securing new applications and providing improved services by analyzing our customer’s content usage patterns and (ii) realizing bulk sales of our “prestige” 7-inch LCD phones to large scale customers (e.g. apartment, residence complex) as well as to customers who would be interested in the contents provided (e.g. English education and BGM for stores). Our QOOK Internet phone service, in line with its role as a major telecommunication carrier, is striving to expand the future telecommunication market by creating new markets through the development of new and diversified services.

We believe that our new businesses will not only bring about new sources of revenue for the company, but will also assist us to maintain our existing fixed-line market share as well as promote our competitiveness in the broadband Internet service market. By leveraging on our past success, we intend to continue to develop and nurture new businesses so that we can become a pioneer in the areas of fixed-line to mobile consolidation, convergence of communications, broadcasting and home appliances and cross-industry convergence.

The statements included in above section are based on our forecasts and are offered for the sole purpose of providing a better understanding of the company’s current state. Consequently, investors must not rely solely on our forecasts when making their investment decisions.

(5) Organization Chart

C. Matters related to products

(1) Status of main products

(Unit: in millions of Won)


Items	Product/service	Main brand		Revenue (%)
Internet Connection	Broadband internet	QOOK internet			1,474,991 (13.2	%)
Internet Application	IDC	Bizmeka			315,484 (2.8	%)
Data	Dedicated leased line	KT			1,127,524 (10.1	%)
Telephone	Fixed-line service	KT			2,747,910 (24.6	%)
LM	Fixed-line service	KT			887,693 (8.0	%)
Wireless	Mobile	SHOW			2,571,055 (23.0	%)
System Integration	SI	KT			157,528 (1.4	%)
Real Estate	Lease, development		—		210,205 (1.9	%)
Sales of goods	SHOW handset sales	SHOW			1,644,397 (14.7	%)
Others	Others		—		21,743 (0.2	%)

	Total				11,158,530 (100.0	%)

* In accordance with Korean GAAP, the financial results of former KT Freetel are reflected for the four months from June 2009 to September 2009.

2. Capital Expenditure

A. Capital Expenditure (First Three Quarters of 2009)

(Unit : hundred million Won)

Total

Cumulative

Investment

Type of

Effect of

Investment

(Third

(2009

Business Unit

Investment

investment

(2005~2008)

quarter)

cumulative)

Internet business

WiBro, XDSL
equipment

Address demands and enhancement of competence

27,827

1,704

2,614

Fixed-line business

Maintenance of fixed-line facilities

Address demands

5,790

429

668

Mobile business

Maintenance of mobile phone facilities

Address demands

31,879

1,770

4,326

Data business

ATM, dedicated leased line equipment and others

Address demands

13,428

1,837

2,662

Telecommunication infrastructure

Transmission, cable tunnels, power facilities and others

Address demands and infrastructure upgrade

34,240

2,427

3,828

Facilities and others

R&D, wireline, IT facilities and others

Address demands and management efficiency

12,963

485

773

Total

126,127

8,652

14,871

* Capital expenditures of KT and former KT Freetel are presented on a combined basis.

B. Capital Expenditure Plans

(Unit : hundred million Won)


Business Unit	Details	Type of Investment	2009
Internet business	- Expansion of internet facilities	WiBro, XDSL equipment		7,484
	- Expansion of new business facilities such as WiBro and IP-TV			7,484
Fixed-line business	- Expansion of fixed line facilities	Maintenance of fixed-line facilities		1,752
	- Network upgrade (PSTNàIP based)			1,752


Business Unit	Details	Type of Investment	2009
Mobile business	- Expansion of mobile facilities	Maintenance of mobile phone facilities		7,907
	- Expansion of CDMA coverage			7,907
Data business	- Expansion of ATM, dedicated leased line facilities	ATM, dedicated line equipment and others		3,185
Telecommunication infrastructure	- Expansion of infrastructure facilities	Transmission, cable tunnels, power facilities and others		9,130
	- Expansion of buildings and others
Facilities and others	- Facility expansion of IT service and U-City business	R&D, wireline, IT facilities and others		2,569
	- Expansion of management facilities

	Total			32,027

The statements included in the above are based on our forecasts and are offered to provide a better understanding of the company’s current state only. Consequently, investors must not rely solely on our forecasts when making their investment decisions.

3. Matters Related to Revenue

A. Performance in Terms of Revenue

(Unit: in millions of Won)


	First Three
	Quarters of 28th
	Fiscal Year
	(For the Nine
	months ended
	September 30,		27th Fiscal Year		26th Fiscal Year
Items	2009)		(2008)		(2007)
Internet Connection		1,474,991		2,129,900		2,118,670
Internet Application		315,484		540,620		389,884
Data		1,127,524		1,650,127		1,627,923
Telephone		2,747,910		3,984,520		4,184,668
LM		887,693		1,393,605		1,597,203
Wireless		2,571,055		1,563,999		1,511,452

•

External distribution channel: sales agencies (445), specialty stores (68), specific service provider (17), SHOW stores (2,500, including 143 KT M&S stores) and affiliate channels (50)

(2) Sales Path

	•		Branch offices offer sales of products and customer services.

	•		Sales of products and subscription to services through sales agencies: sales agencies, agency stores, specialty stores, specific service providers, KTF SHOW stores, and affiliates.

	•		Subscription to products and services through the Internet (www.qook.co.kr).

	•		Attracting new subscribers and increasing cross-sales through business sales agreements.

	•		Utilizing distribution routes through alliance with other businesses.

(3) Methods and Conditions of Sales

(a) Sales Methods

	•		Service fees are paid in cash (wire transfer, direct bank transfer and credit cards). Fixed and wireless telephone services are operated on a unit pricing system or partial flat rate system and broadband Internet access service are operated on a flat rate system.

	•		Sale of terminals may involve installment payments.

	•		Rental of terminals is charged on a monthly basis, and a discounted rate is applied during the contract period.

	•		Distribution fee is comprised of acquisition and retention fee

(b) Conditions for Sales

•

Discount of Service Fees in accordance with the Subscription Period


Category	1 Year	2 Years	3 Years	4 Years
QOOK Internet	5%	10%	15%	20% (limited to Special)

KORNET (Express/Premium)	5%	10%	15%	—

QOOK TV (Live/VOD)	5%	10%	20%	—

- Additional discounts available for subscribers who have used the following services for at least 3 years


Category	After 3 Years	After 4 Years	After 5 Years	Other
QOOK Internet	2%	3%	5%	—

KORNET	2%	3%	5%
(Express/Premium)	(When subscribers sign up for an additional 1 year agreement)	(When subscribers sign up for an additional 2 year agreement)	(When subscribers sign up for an additional 3 year agreement)	When subscribers enter into an additional agreement

•

Package Discounts


1. QOOK Internet plus SHOW	QOOK Internet	SHOW
	3% to 10% additional discount for service fees according to agreement terms	10% discount for monthly service fees (5% for QOOK Internet subscriptions without long-term discount agreements)

2. QOOK Internet plus KT WIBRO	QOOK Internet	KT WIBRO
	3% to 10% additional discount for service fees according to agreement terms	None (instead, NESPOT family provided free of charge)

3. QOOK Internet plus QOOK TV	QOOK Internet	QOOK TV
	3% to 10% additional discount for service fees according to agreement terms	3% to 10% additional discount for service fees according to agreement terms

•

Discounts for Multiple Leased-Lines Subscriptions

Local Leased-Line


	30,001 to 40,000	40,001 to 60,000	Above 60,001
Category	lines	lines	lines	Note
Discount Rate	4%	5%	6%	Limited to Circuits below Low-Speed (300 bps) Level

Long Distance Leased-Line


Category	5~9 lines			Above 10 lines			Note
Discount Rate		5	%		10	%	—

* Please refer to the explanations for each service provided on their respective websites or the relevant terms and conditions for further details.

(4) Sales Strategy

(a) Broadband Internet Service

•

Strengthen competitiveness by enhancing both quality and speed of FTTH offerings

•

Satisfy a diverse range of customer needs and provide differentiated services through development and offering of additional QOOK Internet services

•

Promote specialized high-quality products and increase sales through up-selling and retention of existing customers

(b) WiBro Service

•

Improve distribution networks and strengthen handset design and service offerings

•

Promote interactive stores and pursue target marketing at WiBro U-Campus, laptop rental businesses and securities companies.

•

Stimulate early market interest through promotional rate plans and package products

•

Sell VOD-based QOOK TV products to QOOK Internet customers nationwide

•

Expand client base by offering free set-top box rentals (with a 3 year subscription contract) and opportunities to experience KT services

•

Increase synergy, such as cross-selling and customer retention, through promotion of bundling products with QOOK Internet

(d) Data Service

	•		Enhance customer value by offering high-quality exclusive networks that are stable and unique

	•		Offer customized services through professional consulting

(e) Telephone Service

	•		Focus on retaining local call subscriber base by preventing LNP transfers and cancellations

	•		Increase sales efficiency by target marketing based on analyses of customers’ usage patterns

•

Promote customer loyalty with care programs designed specifically for each customer, and by developing services based on specific customer needs

•

Retain existing customers and effectively compete with Internet telephone companies through optional calling plans and development of package products

(f) Mobile Service

•

Increase customer benefits through promotion of “Show King Sponsor” program

•

Improve sales competitiveness by servicing high-end handsets and diversifying service plans

•

Become a leader in the 3G mobile (WCDMA) market by strengthening our distribution structure and diversifying our sales channels

•

Increase revenue from our mobile data communication business through the expansion of trial services and promotion of new strategic products

•

Focus on customer retention by engaging in care activities for preferred customers

•

Increased revenue through implementation of customer benefit programs primarily to long-term preferred customers

•

Continuously secure competitive advantage in the 3G mobile market through (i) achieving differentiated positioning in the market (ii) providing superior core services to customers and (iii) providing competitive handset lineups

(g) Bundling Service

•

Retain existing customers by developing and promoting new QOOK Internet-based package products and recruiting new clients for services such as SHOW WiBro and SHOW

•

Promote customer retention through continued development and sale of package products of major services

4. Research and Development Activities

A. Research and Development costs

(Units : in millions of Won)


	First Three
	Quarters of
Category	2009			2008		2007		Notes
Raw material		—		—		—			—
Labor cost		43,320		69,256		65,478
Depreciation		44,030		51,637		49,524			—
Commissions		705		14,027		20,239			—
Others		90,755		214,263		236,605			—
Total R&D costs		178,810		349,183		371,846			—
Accounting treatment
Research and ordinary development costs		154,598		251,141		260,445
Development cost (intangible asset)		24,212		98,042		111,401
Percentage of R&D costs over revenue		1.60	%	2.96	%	3.12	%		—

5. Other Matters Necessary for Making Investment Decisions

A. Status of patents

As of September 30, 2009, we held 5,253 registered patents domestically and 404 registered patents internationally.

III. Financial Information

1. Summary of Financial Statements (Non-Consolidated)

(Unit: in millions of Won)


	As of Sept.			As of Dec.			As of Dec.			As of Dec.			As of Dec.
Classification	30, 2009			31, 2008			31, 2007			31, 2006			31, 2005
Current Assets		6,713,075			3,778,105			3,310,412			3,239,188			3,418,917
-Quick Assets		6,188,865			3,610,564			3,188,309			3,146,206			3,303,033
-Inventory		524,210			167,541			122,103			92,982			115,884
Fixed Assets		17,316,544			14,906,817			14,606,770			14,723,145			14,517,592
-Investments		1,225,535			3,517,906			3,458,580			3,661,067			3,453,071
-Tangible assets		13,755,755			10,428,674			10,448,618			10,398,084			10,411,523
-Intangible assets		1,173,752			397,046			439,738			470,782			443,098
-Other non-current assets		1,161,502			563,191			259,834			193,212			209,900
Total Assets		24,029,619			18,684,922			17,917,182			17,962,333			17,936,509
Current Liabilities		4,272,020			2,585,875			2,991,341			3,270,249			3,079,999
Fixed Liabilities		9,211,425			7,267,158			6,065,948			6,143,004			6,807,214
Total Liabilities		13,483,445			9,853,033			9,057,289			9,413,253			9,887,213
Capital		1,564,499			1,560,998			1,560,998			1,560,998			1,560,998
Capital Surplus		1,458,700			1,440,633			1,440,777			1,440,910			1,440,258
Capital Adjustments		(2,507,604	)		(3,994,736	)		(3,983,929	)		(3,817,717	)		(3,870,288	)
Accumulated Comprehensive Income		4,620			10,879			(818	)		10,978			119,658
Retained Earnings		10,025,959			9,814,115			9,842,865			9,353,911			8,798,670
Total Capital		10,546,174			8,831,889			8,859,893			8,549,080			8,049,296

(Unit: in millions of Won)


	For the
	third
	quarter
	ended		For the year		For the year		For the year		For the year
	Sept. 30,		ended Dec.		ended Dec.		ended Dec.		ended Dec
Classification	2009		31, 2008		31, 2007		31, 2006		31, 2005
Sales		11,158,530		11,784,835		11,936,382		11,856,009		11,877,272
Operating Income		1,161,050		1,113,389		1,433,722		1,756,228		1,659,883
Ordinary Income		947,036		560,045		1,274,725		1,574,460		1,376,429
Net Income		947,036		449,810		981,967		1,233,449		1,031,810
- Basic earnings per share		4,429		2,217		4,753		5,877		4,877
- Diluted earnings per share		4,358		2,217		4,753		5,870		4,871

* In accordance with Korean GAAP, the financial results of former KT Freetel are reflected for the four months from June 2009 to September 2009.

2. Summary of Financial Statements (Consolidated)

As of the end of December 31

(Unit: in millions of Won)


Classification	2008			2007			2006			2005			2004
Current Assets		7,073,826			5,642,799			5,981,420			6,131,744			6,808,977
-Quick Assets		6,648,985			5,343,695			5,744,225			5,771,631			6,434,658
-Inventory		424,841			299,104			237,195			360,113			374,319
Fixed Assets		19,064,778			18,484,086			18,261,914			18,556,973			19,664,255
-Investments		546,000			470,195			533,947			792,669			913,844
-Tangible assets		15,188,631			15,288,002			15,167,429			15,087,032			15,721,455
-Intangible assets		1,474,238			1,735,323			1,959,591			2,133,199			2,184,689
-Other non-current assets		1,855,909			990,566			600,947			544,073			844,267
Total Assets		26,138,604			24,126,885			24,243,334			24,688,717			26,473,232
Current Liabilities		5,241,028			5,078,621			5,423,115			4,822,341			8,334,490
Fixed Liabilities		9,809,678			7,910,498			8,122,915			9,476,442			9,112,362
Total Liabilities		15,050,706			12,989,119			13,546,030			14,298,783			17,446,852
Capital		1,560,998			1,560,998			1,560,998			1,560,998			1,560,998
Capital Surplus		1,440,633			1,440,777			1,292,475			1,389,222			1,291,617
Capital Adjustments		(3,994,736	)		(3,983,929	)		(3,817,717	)		(3,868,078	)		(3,967,270	)
Accumulated Comprehensive Income		10,879			142			5,772			(3,166	)		(1,782	)
Retained Earnings		9,814,115			9,843,775			9,400,068			8,786,413			8,333,240
Minority Interest		2,256,009			2,276,003			2,267,252			2,518,213			1,809,577
Total Capital		11,087,898			11,137,766			10,697,304			10,389,934			9,026,380

For the years ended December 31
(Unit: in millions of Won)


Classification	2008		2007		2006		2005		2004
Revenues		19,644,543		18,660,082		17,824,880		17,155,455		17,068,371
Operating Income		1,427,762		1,745,341		2,383,376		2,430,942		2,480,532
Income from continuing operations		513,290		1,096,774		1,509,721		1,365,010		1,431,147
Net Income		513,290		1,170,978		1,509,717		1,360,036		1,431,147
Consolidated Net Income		449,810		1,056,227		1,291,863		1,085,450		1,282,216
Number of consolidated companies		33		28		23		21		13

IV. Auditors’ Opinion

1. Auditor


Third quarter 2009	Third quarter 2008	2008	2007
Deloitte Anjin LLC	Deloitte Anjin LLC	Deloitte Anjin LLC	Deloitte Anjin LLC

2. Audit (or Review) Opinion


Term	Audit (or Review) Opinion	Issues noted
Third quarter 2009	—	Not Applicable
Third quarter 2009	—	Not Applicable
2008	Unqualified	Not Applicable
2007	Unqualified	Not Applicable

3. Remuneration for Independent Non-Executive Auditors for the Past Three Fiscal Years

A. Audit Contracts

(Unit: in million won, hours)


Term	Auditor	Contents	Fee	Total Hours
First three quarters of 2009	Deloitte Anjin LLC	Quarterly and semi-annual review of	2,795	18,260
		financial statements
		Semi-annual review of consolidated
		financial statements
		Non-consolidated financial statements
		audit
		Consolidated financial statements audit
		Kaesong Branch Office audit
		US GAAP financial statements
		semi-annual review
		US GAAP financial statements audit

2008	Deloitte Anjin LLC	Quarterly and semi-annual review of	2,319	33,858
		financial statements
		Semi-annual review of consolidated
		financial statements
		Non-consolidated financial statements
		audit
		Consolidated financial statements audit
		Kaesong Branch Office audit
		US GAAP financial statements
		semi-annual review
		US GAAP financial statements audit

2007	Deloitte Anjin LLC	Quarterly and semi-annual review of	1,985	37,000
		financial statements
		Semi-annual review of consolidated
		financial statements
		Non-consolidated financial statements
		audit
		Consolidated financial statements audit
		US GAAP financial statements audit

V. Board of Directors and Affiliated Companies

1. Overview of the Board of Directors and Committees under the Board

A. Matters on the Board of Directors

Currently our board of directors is comprised of three standing directors and seven outside directors. Also, we have established six committees within the board of directors: (i) Audit Committee, (ii) Outside Director Candidate Nominating Committee, (iii) Evaluation and Compensation Committee, (iv) Executive Committee (v) Related-party Transaction Committee, and (vi) Corporate Governance Enhancement Committee. The Board of directors can establish additional committees, if deemed necessary.

B. Major Activities of the Board of Directors

Outside Directors

Results

Paul C.

Jeong

Si-Chin

In-Man

Meeting

Suk Koh

Kang

Joon Park

Song

Order

Date

Agenda

discussion

Voting Result

Jan. 14

Appointment of Chairman of BOD and members of committees

Appointed

For

Jan. 20

Proposal for merger with KT Freetel Co.,

Original proposal approved

For

Proposal for of issuance of exchangeable bonds

Original proposal approved

For

Proposal for closing of books of records

Original proposal approved

For

Proposal for appointments of members of Outside Director Nominating Committee

Members appointed

For

Jan. 22

Approval of Financial Statements of the 27th Term

Original proposal approved

For

Business Report of the 27th Term

Original proposal approved

For

Plan for issuance of bonds for the first half year

Original proposal approved

For

Feb. 6

Approval on nominated candidate for standing directors

Original proposal approved

For

Proposal on remuneration standards and payment methods for the President and Executive Directors

Original proposal approved

For

Approval of the proposal for limit on remuneration of Directors for 2009

Original proposal approved

For

Approval of Financial Statements of the 27th Term

Original proposal approved

For

Outside Directors

Results

Paul C.

Jeong

Si-Chin

In-Man

Meeting

Suk Koh

Kang

Joon Park

Song

Order

Date

Agenda

discussion

Voting Result

Business Report of the 27th Term

Original proposal approved

For

Report on operational condition of internal accounting management system of Fiscal Year 2008

Original proposal received

For

Convocation of Annual General Meeting of Shareholders of 27th Term

Original proposal approved

For

Report on validity of the Audit Committee

Original proposal approved

For

Feb. 24

Proposal for amendment of articles of incorporation

Original proposal approved

Absent

For

Convocation of Extraordinary General Meeting of Shareholders

Original proposal approved

Absent

For

2009 Management plan

Original proposal approved

Absent

For

Disposal of treasury shares for payment of long-term incentives

Original proposal approved

Absent

For

Proposal to withhold payment of incentives to former CEO

Original proposal approved

Absent

For

Report on operational condition of internal accounting management system of Fiscal Year 2007 (prepared by the Audit Committee)

Original proposal received

Absent

For


*		Choon-Ho Lee, E.Han Kim, Jeung-Soo Huh were newly elected as outside directors at the annual general meeting of shareholders held on March 6, 2009

Outside Directors

Jeong

Si-

In-

Jeung

Results

Paul

Suk

Chin

Joon

Man

Choon

E.Han

-Soo

Meeting

C. Yi

Koh

Kang

Park

Song

-Ho Lee

Kim

Huh

Order

Date

Agenda

discussion

Voting Result

Mar.6, 2009

Appointments of Chairman of BOD and members of committees

Appointed

For

Shareholder value enhancement plan

Original proposal approved

For


*		Paul C. Yi resigned as our outside director on March 6, 2009

Outside Directors

Jeong

Jeung-

Results

E.Han

Suk

Si-Chin

Joon

In-Man

Choon-

Soo

Meeting

Kim

Koh

Kang

Park

Song

Ho Lee

Huh

Order

Date

Agenda

discussion

Voting Result

Mar. 27, 2009

Proposal for equity investment to KTSC

Original proposal approved

For

Absent

For

Plan for amendments of BOD and committee regulations

Original proposal approved

For

Absent

For

Outside Directors

Jeong

Jeung-

Results

E.Han

Suk

Si-Chin

Joon

In-Man

Choon-

Soo

Meeting

Kim

Koh

Kang

Park

Song

Ho Lee

Huh

Order

Date

Agenda

discussion

Voting Result

May 7, 2009

Proposal for amendment of executive directors committee

Original proposal approved

For

Payment of long-term incentives

Original proposal approved

For

Report on statement of accounts for the first quarter of fiscal year 2009

Original proposal received

For

Proposal for organization and operation plan of the corporate governance enhancement committee

Original proposal approved

For

May 20, 2009

Proposal on disposal of treasury shares for the issue of EB and exchange of merger price

Original proposal approved

For

Proposal on classification, number and remuneration limit of executive officers

Original proposal approved

For

Jun. 1, 2009

Report on announcement of merger completion between KT and KT Freetel

Original proposal approved

For

July 30, 2009

Proposal on contribution to welfare fund for employee benefits for fiscal year 2009

Original proposal approved

For

Report on statement of accounts for the first half of fiscal year 2009

Original proposal registered

For

C. Committees within the Board of Directors

(1) Status of committees within the Board of Directors


		Name		Note
		(As of March 6,	Purpose of Establishment	(Jan.14~March
Title	Organization	2009)	and Authority	6, 2009)
Evaluation and Compensation Committee	4 Outside Directors	4 Outside Directors Jeong Suk Koh (Chairperson) In-Man Song Choon Ho Lee Jeung Soo Huh	Matters on management agreement with the president and assessment of president	3 Outside Directors Jeong Suk Koh (Chairperson) Si Chin Kang In-Man Song

Executive Committee	3 Standing Directors	Suk-Chae Lee (Chairperson) Sang Hoon Lee Hyun-Myung Pyo	Management and financial matters authorized by the Board of Directors	Suk-Chae Lee (Chairperson) Jeong Soo Suh Jong Lok Yoon*


		Name		Note
		(As of March 6,	Purpose of Establishment	(Jan.14~March
Title	Organization	2009)	and Authority	6, 2009)
Related-party Transaction Committee	4 Outside Directors	Joon Park (Chairperson) Jeong Suk Koh Choon Ho Lee Jeung Soo Huh	Internal transactions that require resolution by the Board of Directors as stipulated by the ‘Antitrust Regulation and Fair Trade Law’ and ‘Securities and Exchange Act’	Paul C. Yi (Chairperson) Jeong Suk Koh Joon Park In Man Song

Corporate Governance Committee	5 Outside Directors, 1 Standing Director	E.Han Kim (Chairperson), Jeong Suk Koh, Si-Chin Kang, Joon Park, Choon Ho Lee, Hyun-Myung Pyo	Enhancement of corporate governance	—

Outside Director Candidate Recommendation Committee	See “Management and Affiliated Companies — Overview of the Board of Directors and Committees under the Board — Independence of Directors.”			—

Audit Committee	See “Management and Affiliated Companies — Audit Committee.”			—


*		resigned as of January 22, 2009

(2) Main activities of committees

(a) Evaluation and Compensation Committee


			Independent and Non-Executive Directors
			Jeong Suk
			Koh	Si-Chin Kang	In-Man Song
			Attendance	Attendance	Attendance
Meeting		Results	100%	100%	100%
Date	Agenda	on discussion	Voting Result
Feb.4, 2009	Proposal for remuneration standards and payment methods for the president and standing directors	Original proposal approved	For	For	For
	Proposal for limit on remuneration of directors	Original proposal approved	For	For	For
	Results of 2008 CEO management assessment	Request for revision	Against	Against	Against
	Proposal for president’s management index	Conditional approval	Conditional approval	Conditional approval	Conditional approval

Feb.6, 2009	Results of 2008 CEO management assessment	Original proposal approved	For	For	For

Feb. 18, 2009	Proposal for payment of long-term incentives	Original proposal approved	For	For	For
	Proposal to withhold payment of incentives to former CEO	Original proposal approved	For	For	For

Feb. 24, 2009	2009 CEO management goal	Original proposal approved	For	For	For


*		On March 6, 2009, new committee members were elected (Jeong Suk Koh, In-Man Song, Choon Ho Lee, Jeung Soo Huh)

Independent and Non-Executive Directors

Jeong Suk

In-Man

Choon Ho

Jeung Soo

Koh

Song

Lee

Huh

Attendance

Meeting

Results

100%

Date

Agenda

of discussion

Voting Result

Apr. 29, 2009

Payment of long-term incentives for fiscal year 2009

Original proposal approved

For

Plan for assessment of fiscal year 2009 performance indexes

Original proposal approved

For

Sept. 7, 2009

CEO management performance for the first half of fiscal year 2009

Original proposal received

For

(b) Executive Committee


			Executive Directors
			Suk-Chae	Jeong-Soo	Jong-Lok
			Lee	Suh	Yoon
			Attendance	Attendance	Attendance
Meeting		Results	100%	100%	100%
Date	Agenda	of discussion	Voting Result
Jan. 12, 2009	Proposal for the establishment, relocation and closing of branch offices	Original proposal approved	—	For	For

Feb. 16, 2009	Plan for issuance of bonds for the first half year	Original proposal approved	For	For	—

Feb. 24, 2009	Plan for relocation of branch offices	Original proposal approved	For	For	—


*		Standing director Jong-Lok Yoon resigned as of January 22, 2009.

*		On March 6, 2009, new committee members were elected (Sang Hoon Lee, Hyun-Myung Pyo).


			Executive Directors
			Suk-Chae	Sang Hoon	Hyun Myung
			Lee	Lee	Pyo
			Attendance	Attendance	Attendance
Meeting		Results	100%	100%	100%
Date	Agenda	of discussion	Voting Result
May 6, 2009	Proposal for renaming and relocation of branch offices	Original proposal approved	For	For	For

Jun. 1, 2009	Proposal for establishment, renaming and closure of branch offices	Original proposal approved	For	For	For

Sept. 1, 2009	Proposal for investment in IBK-AUCTUS new-growth fund	Original proposal approved	For	For	For

Standing

Independent and Non-Executive Directors

Director

Jeong Suk

Si-Chin

Joon

Choon-

Hyun-

E.Han Kim

Koh

Kang

Park

Ho Lee

Myung Pyo

Results

Attendance

Meeting

100%

50%

100%

Date

Agenda

discussion

Voting Result

May. 20, 2009

Corporate governance examples and related key issues

Original proposal approved

For

July 30, 2009

Characteristics and current status of KT’s corporate governance

Original proposal approved

For

Absent

For

D. Independence of Directors

(1) Standards for appointment of directors

In order to ensure independency and transparency, the Outside Director Nominating Committee appoints outside director candidates to be nominated for election at the general meeting of shareholders. If necessary, the committee can appoint a research institution and establish a candidate nominating advisory council. Legally unqualified candidates are not nominated.

(2) Background for candidate nomination


			Transaction with
			company/
	Reason for		Relationship with
Outside Director	nomination	Acting committee	major shareholders
Jeong Suk Koh	Expertise in investment	Evaluation and compensation committee (Chairman), Related-party Transaction Committee	None

Choon-Ho Lee	Expertise in media business	Evaluation and compensation committee (Chairman), Related-party Transaction Committee	None

Jeong Soo Huh	Expertise in new and renewable energy	Evaluation and compensation committee (Chairman), Related-party Transaction Committee	None

(3) Separate committee established for nomination of outside director candidate

•

Appointment of Members and Chairman of the Outside Director Candidate Nominating Committee (January 20, 2009)


Name	Outside Director	Note
Paul C. Yi Jeong Suk Koh Si-Chin Kang In-Man Song	O O O O	At least half of the directors shall be Outside Directors (satisfied the requirement of Article 542-8 of the Commercial Code)
Joon Park	O
Jeong-Soo Suh	X

Executive

Independent and Non-Executive Directors

Director

Jeong Suk

Si-Chin

In-Man

Jeong-Soo

Paul C. Yi

Koh

Kang

Song

Joon Park

Suh

Attendance

Meeting

Results

100%

Date

Agenda

of discussion

Voting Result

Jan. 20

Support plan for the recommendation of Outside Director candidates

Original proposal approved

For

Jan.29

Appointment of outside director candidates

Original proposal received

For

Feb.4

Final nomination of candidates for Outside Directors - Choon-Ho Lee, Jeong-Soo Huh, E.Han Kim

Advisory council organized

For

2. Matters on Audit Procedure

A. Personal Information of Members of the Audit Committee (As of September 30, 2009)


Name		Experience
Si-Chin Kang		- Master in Business Administration, Korea University

		- Audit Committee, Standard Chartered First Bank

		- Auditor, Catholic Education Foundation

In-Man Song		- Ph.D in Business Administration, University of Wisconsin-Madison

		- IFRS Advisor, Financial Supervisory Service (present)


Name		Experience
		- Professor, Graduate School of Business Sungkyunkwan University

Joon Park		- LL.M., Harvard Law School

		- Attorney-at-law, Kim&Chang, Seoul, Korea

		- Professor, College of Law, Seoul National University

E.Han Kim		- Ph.D. in finance, State University of New York at Buffalo

		- Independent Director and Chairman of board of directors, POSCO

		- Endowed Chair Professor and Director of Financial Research Center, University of Michigan

B. Audit committee independence

We have established an audit committee within our BOD and its members are elected at the general meeting of shareholders. All four of our audit committee members are outside directors and three of them are financial experts. The audit committee functions independently to KT and is entitled to request for information on business matters and evaluate KT financial status.


			Transaction with
			company/
Outside			Relationship with
Director	Reason for nomination	Acting committee	major shareholders
E.Han Kim	Expertise in finance	Chairman, audit committee	None

Si-Chin Kang	Expertise in finance	Audit committee (chairman)	None

In-Man Song	Expertise in finance	Audit committee, evaluation and compensation committee	None

Joon Park	Expertise in law	Audit committee, Related-party transaction committee	None

C. Audit committee main activities


Order	Date	Subject	Result of Discussion
First	Jan.14, 2009	Appointment of the Chairman of the Audit Committee	Chairman appointed
		Agreement of appointments and dismissals of internal auditors	Original proposal approved

Second	Jan.21, 2009	Report on approval of Financial Statements of the 27th Term	Original proposal received
		Report on Business Report of the 27th term	Original proposal received
		Report on final audit of fiscal year 2008	Original proposal received


Order	Date	Subject	Result of Discussion
Third	Feb. 4, 2009	Approval of consolidated company’s independent auditor and remuneration for fiscal year 2008	Revision requested
		Report on operational condition of internal accounting management system of Fiscal Year 2008	Original proposal received
		Report on operational condition of internal accounting management system of Fiscal Year 2007 (prepared by Audit Committee)	Original proposal received
		Report on validity of audit committee	Original proposal received
		Report on 2008 audit results and 2009 audit plans	Original proposal received

Fourth	Feb. 6, 2009	Approval of independent auditor and remuneration of consolidated companies for Fiscal Year 2008	Original proposal approved

Fifth	Feb. 18, 2009	Report on agenda of 27th Annual General Meeting of Shareholders and results on document examination	Original report received
		Audit report for 27th Annual General Meeting of Shareholders	Original report received
		Written Opinion on operational status of internal compliance device of the Audit Committee	Reexamination requested

Sixth	Feb. 24, 2009	Report on operational condition of internal accounting management system of Fiscal Year 2007 (prepared by Audit Committee)	Original report received
		Written Opinion on operational status of internal compliance device of the Audit Committee	Original report received

Seventh	Mar. 20, 2009	Approval of remuneration to independent auditor for Fiscal Year 2009	Original proposal approved
		Approval of independent auditor and remuneration of consolidated companies for Fiscal Year 2009	Original proposal approved
		Report on consolidated financial statements audit for fiscal year 2008	Original report received
		Report on agenda of Extraordinary General Meeting of Shareholders and results on document examination	Original report received

Eighth	April 29, 2009	Report on statement of accounts for the first quarter of fiscal year 2009	Original report received
		Report on audit results for the first quarter of fiscal year 2009 and future plans	Original report received
Ninth	June 18, 2009	Approval of independent auditor and remuneration of consolidated companies (two companies in Uzbekistan) for Fiscal Year 2009	Original proposal approved
		Report on Form 20-F for fiscal year 2008	Original report received


Order	Date	Subject	Result of Discussion
Tenth	July 29, 2009	Pre-approval of service provided by independent auditor	Original proposal approved
		Approval of accounting policy in connection with adoption of IFRS	Original proposal approved
		Report on statement of accounts for the first half of fiscal year 2009	Original report received

Eleventh	Sept. 7, 2009	Report on financial statement audit for the first half of fiscal year 2009	Original report received
		Report on audit results for the second quarter of fiscal year 2009 and future plans	Original report received

3. Matters on Shareholder’s Exercise of Voting Right

A. Adoption of Cumulative Voting System

Automatic introduction of the cumulative voting system following the completion of the privatization process in 2002.

B. Adoption of the Written Voting System or Electronic Voting

Adoption of the written voting system in accordance with the changes in the Articles of Incorporation at the 23rd General Meeting of Shareholders (March 11, 2005)

C. Exercise of Minority Shareholders’ Rights

The minority shareholders’ rights were exercised most recently at the 24th General Meeting of Shareholders in 2006.

24th General Meeting of Shareholders (March 10, 2006)


	Contents of the
	Minority
	Shareholder’s	Purpose of
Shareholder	Right	Exercise	Result	Note
Jai Sik Ji and others	Shareholder proposal on the subject matter of the general meeting of shareholders	Recommendation of Outside Director candidates who will also be members of the Audit Committee	Candidates recommended through shareholder proposals failed to be appointed at the General Meeting of Shareholders (cumulative voting)	Article 191-14 of the Securities and Exchange Act

Jai Sik Ji and others	Request for cumulative voting	Request for cumulative voting for appointment of Outside Director candidates who will also be members of the Audit Committee	Candidates recommended through shareholder proposals failed to be appointed at the General Meeting of Shareholders (cumulative voting)	Article 191-18 of the Securities and Exchange Act

VI. Major Stockholders and Related Party Transactions

1. Major Stockholders

The following table presents information regarding holders of 5% or more of our total issued shares as of September 30, 2009:


			(Unit : Shares, %)
	Number of Shares of Common		Percentage of Total Issued
Name	Stock		Shares
Korean National Pension Service		24,062,457		9.22



*		The above number was estimated based on the following assumptions:

-		22,682,641 shares held by the Korean National Pension Service as of May 6, 2009 as disclosed on June 5, 2009.

-		1,379,816 shares of KT exchanged for 1,918,467 shares of former KT Freetel owned as of June 22, 2009.

2. Share Ownership Status of Employee Stock Ownership Association

A. Transactions with Employee Stock Ownership Association

Not Applicable

B. Guideline for Exercising the Voting Rights of Employee Stock Ownership Association

Association Account: Employee Stock Ownership Association exercises its voting rights in the same proportion as those shares held in the association member accounts that have indicated how to vote.

Association Member Account: Employee Stock Ownership Association may exercise its voting rights only if (i) the association receives a request by an association member to exercise his voting rights within a minimum period of seven days or (ii) the association member chooses to delegate his voting rights to the association.

C. Shares Held by the Employee Stock Ownership Association



(As of September 30, 2009)		(Unit: Shares)

Type of Account

Type of Shares

Balance at Beginning of Term

Term-End Balance

Association Account

Common Share

35,136

35,074

Association Member Account

Common Share

13,153,084

8,763,012

Total

13,188,220

8,798,086

VII. Management and Employees

1. Remuneration to Executive Officers

Remuneration paid to Directors (including Outside Directors) and Members of the Audit Committee (Auditors)

(Unit: in hundred millions of Won)


	Total		Amount Approved by		Average
	Amount		the General Meeting		Amount Paid		Fair Value of
Category	Paid		of Shareholders		per Person		Stock Option		Weight
3 Standing Directors		6.37		45		2.12		—		—
7 Outside Directors		3.2		45		0.45		—		—



*		Performance-based compensation made at year end.

B. Grant and Exercise of Stock Option



As of September 30, 2009		(Unit: Won, shares)


				Shares to
				be given
		Date of		upon	Type of	Changed Volume								Period for	Exercise
Holder	Position	Grant		exercise	Share	Granted		Exercised		Revoked		Unexercised		Exercise	Price
Woo Sik Kim	Standing Director		3/25/2002	Treasury Share	Common Share		4,171		—		—		4,171	3/25/2005 to 3/24/2010		62,814
Won Pyo Hong	Standing Director		3/25/2002	Treasury Share	Common Share		4,171		—		—		4,171	3/25/2005 to 3/24/2010		62,814
Min Hee Lee	Standing Director		3/25/2002	Treasury Share	Common Share		4,171		—		—		4,171	3/25/2005 to 3/24/2010		62,814
Ju-Young Song	Standing Director		3/25/2002	Treasury Share	Common Share		4,171		—		—		4,171	3/25/2005 to 3/24/2010		62,814
Lee-Sun Kim	Standing Director		3/25/2002	Treasury Share	Common Share		3,883		—		—		3,883	3/25/2005 to 3/24/2010		62,814
Yong Kyung Lee	Standing Director		12/26/2002	Treasury Share	Common Share		300,000		—		46,900		253,100	12/27/2004 to 12/26/ 2009		70,000
Tae-Won Chung	Standing Director		12/26/2002	Treasury Share	Common Share		100,000		—		54,855		45,145	12/27/2004 to 12/26/2009		70,000
Young- Han Song	Standing Director		12/26/2002	Treasury Share	Common Share		60,000		—		31,283		28,717	12/27/2004 to 12/26/2009		70,000
Ahn-Yong Choi	Standing Director		12/26/2002	Treasury Share	Common Share		60,000		—		27,830		32,170	12/27/2004 to 12/26/2009		70,000
Hong-Sik Chun	Standing Director		12/26/2002	Treasury Share	Common Share		100,000		—		87,500		12,500	12/27/2004 to 12/26/2009		70,000
Jung-Eung Kim	Outside Director		9/8/2003	Treasury Share	Common Share		7,120		—		3,524		3,596	9/9/2005 to 9/8/2010		41,711
Il-Chong Nam	Outside Director		9/8/2003	Treasury Share	Common Share		7,120		—		3,524		3,596	9/9/2005 to 9/8/2010		41,711
Sung-Chul Jun	Outside Director		9/8/2003	Treasury Share	Common Share		7,120		—		3,524		3,596	9/9/2005 to 9/8/2010		41,711
Young-Ju Cho	Standing Director		9/8/2003	Treasury Share	Common Share		43,154		—		2,345		40,809	9/9/2005 to 9/8/2010		41,711
In-Mu Huh	Executive Officer		9/8/2003	Treasury Share	Common Share		28,769				25,533		3,236	9/9/2005 to 9/8/2010		41,711


					Shares to
					be given
			Date of		upon		Type of		Changed Volume								Period for		Exercise
Holder	Position		Grant		exercise		Share		Granted		Exercised		Revoked		Unexercised		Exercise		Price
Ju-Young Song	Executive Officer			9/8/2003	Treasury Share		Common Share			28,769				1,524		27,245	9/9/2005 to 9/8/2010			41,711
Min-Hee Lee	Executive Officer			9/8/2003	Treasury Share		Common Share			21,577				1,173		20,404	9/9/2005 to 9/8/2010			41,711
Su-Sung Jung	Executive Officer			9/8/2003	Treasury Share		Common Share			21,577				1,173		20,404	9/9/2005 to 9/8/2010			41,711
Suh-Hwan Cho	Executive Officer			9/8/2003	Treasury Share		Common Share			21,577				1,173		20,404	9/9/2005 to 9/8/2010			41,711
Hyun-Myung Pyo	Executive Officer			9/8/2003	Treasury Share		Common Share			21,577				1,173		20,404	9/9/2005 to 9/8/2010			41,711
Hun-Chul Shin	Executive Officer			9/8/2003	Treasury Share		Common Share			21,577				19,779		1,798	9/9/2005 to 9/8/2010			41,711
Moon-Ho Lee	Executive Officer			9/8/2003	Treasury Share		Common Share			21,577				1,173		20,404	9/9/2005 to 9/8/2010			41,711
Tae-Bum Roh	Executive Officer			9/8/2003	Treasury Share		Common Share			21,577				7,975		13,602	9/9/2005 to 9/8/2010			41,711
Ki-Chul Kim	Executive Officer			9/8/2003	Treasury Share		Common Share			21,577				1,173		20,404	9/9/2005 to 9/8/2010			41,711
Hyun-June Chang	Standing Director			9/16/2003	Treasury Share		Common Share			36,400		—		33,400		3,000	9/17/2005 to 9/16/2010			57,000
Hui-Chang Roh	Standing Director			2/4/2005	Treasury Share		Common Share			60,000		—		16,847		43,153	2/5/2007 to 2/4/2012			54,600
Hong-Ki Kim	Outside Director			3/4/2005	Treasury Share		Common Share			6,976		—		—		6,976	3/5/2007 to 3/4/2012			42,684
Jae-Chul Lee	Outside Director			3/4/2005	Treasury Share		Common Share			6,976		—		—		6,976	3/5/2007 to 3/4/2012			42,684
Ki-Kwon Doh	Outside Director			3/4/2005	Treasury Share		Common Share			6,976		—		—		6,976	3/5/2007 to 3/4/2012			42,684
Duk-Nam Hwang	Outside Director			3/4/2005	Treasury Share		Common Share			6,976		—		—		6,976	3/5/2007 to 3/4/2012			42,684
Hoon Han	Executive Officer			3/4/2005	Treasury Share		Common Share			21,577		—		5,967		15,610	3/5/2007 to 3/4/2012			42,684
Young-Do Hong	Executive Officer			3/4/2005	Treasury Share		Common Share			21,577		—		3,736		17,841	3/5/2007 to 3/4/2012			42,684
Tae-Kun Kim	Executive Officer			3/4/2005	Treasury Share		Common Share			21,577		—		3,736		17,841	3/5/2007 to 3/4/2012			42,684
Total		—		—		—		—		1,093,070		—		355,620		737,450		—		—

The weighted-average exercise price of the unexercised stock options: Won 57,476.

Remarks:

(1) Unexercised stock options of former KT Freetel and its respective exercising prices have been adjusted and incorporated in accordance with the exchange ratio stipulated in the merger agreement. (total of 319,665 shares have been added)

(2) Position is as of the date of the stock option grant.

(3) Difference between the number of shares granted and the number shares with stock option unexercised: due to adjustment of number of granted shares that are dependent on management results and duration of continuous service

2. Current Status of Employees



(As of September 30, 2009)		(Unit: persons, in millions of Won)

Total

Payroll for

Average Years

first three

Average

Number of Employees

in Continuous

quarters of

Payroll per

Regular

Other

Total

Service

2009

Person

Note

36,807

219

37,026

19.3

1,519,991

42.06

—

1) Number of employees is as of end of September 2009 (excluding directors)

2) Former KT Freetel employee payroll has been reflected for the four months from June 2009 to September 2009.

3) Average payroll per person has been calculated based on the average number of employees for the first three quarters of 2009 (35,489 persons)

à Average payroll per person = cumulative payroll for the first three quarters of 2009 divided by average number of employees for the first three quarters of 2009


Term	Date of contract	Contents	Period	Total Fee
2009	March 2009	Review of SEC filing documents (Form 20-F, annual report)	-June ~December 2009		45,000,000

	September 2009	Home customer value enhancing project	- October 2009~ January 2010		853,636,364
2008	April 2008	Revision of SEC filing documents	- June 2008 - January 2009		85,000,000
2007	—	—	—	—


I. Corporate General			3
1. General Information			3
2. History			7
3. Change in Capital			8
4. Total Number of Shares and Others			9
5. Voting Rights			11
6. Matters on Dividends and Others			11
II. Details of Business			13
1. Overview			13
2. Capital Expenditure			21
3. Matters Related to Revenue			22
4. Research and Development Activities			28
5. Other Matters Necessary for Making Investment Decisions			28
III. Financial Information			29
1. Summary of Financial Statements (Non-Consolidated)			29
2. Summary of Financial Statements (Consolidated)			30
IV. Auditors’ Opinion			31
1. Auditor			31
2. Audit (or Review) Opinion			31
3. Remuneration for Independent Non-Executive Auditors for the Past Three Fiscal Years			31
V. Board of Directors and Affiliated Companies			33
1. Overview of the Board of Directors and Committees under the Board			33
2. Matters on Audit Procedure			39
3. Matters on Shareholder’s Exercise of Voting Right			42
4. Affiliated companies			43
VI. Major Stockholders and Related Party Transactions			44
1. Major Stockholders			44
2. Share Ownership Status of Employee Stock Ownership Association			44
VII. Management and Employees			45
1. Remuneration to Executive Officers			45
2. Current Status of Employees			47
EX-99.1



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