Form 6-K

6-K 1 d6k.htm FORM 6-K Form 6-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 6-K

REPORT OF FOREIGN PRIVATE ISSUER

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

THE SECURITIES EXCHANGE ACT OF 1934

For the month of January 2011

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 x Form 40-F ¨

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

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

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

Yes ¨ No x

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

SIGNATURES

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


Dated: January 28, 2011
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

January 28, 2011

LOGO

4th Quarter 2010

Preliminary Earnings Commentary

(KRX : 030200 / NYSE : KT)

Disclaimer

This material contains estimated information of unaudited preliminary financial and operating data of KT Corporation (“KT” or “the company”) for the fourth quarter of 2010 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 the fourth quarter of 2010 will be filed with the Financial Supervisory Service(FSS) and the Korea Exchange(KRX) by March 31, 2011.

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

Tel : 82-31-727-1911~3

Fax : 82-31-727-0159

E-mail: ir@kt.com

2010 4Q 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.

(2009 figures are results as of KT merged on January 1, 2009.)


1. Financial Highlights		(unit : KRW bn)


A.	Income Statement	‘10-4Q		‘09-4Q		YoY			‘10-4Q		‘10-3Q		QoQ			2010		2009		YoY
	Operating Revenue		5,191.4		4,747.6		9.3	%		5,191.4		5,233.4		-0.8	%		20,233.5		18,955.8		6.7	%
	Service Revenue		3,908.5		3,893.2		0.4	%		3,908.5		3,997.6		-2.2	%		15,732.6		15,434.1		1.9	%
	Sales of Merchandise		1,282.9		854.4		50.1	%		1,282.9		1,235.8		3.8	%		4,500.9		3,521.7		27.8	%
	Ÿ Wireless		2,919.0		2,468.2		18.3	%		2,919.0		2,925.6		-0.2	%		11,084.5		9,660.9		14.7	%
	Ÿ Telephone		1,051.5		1,150.8		-8.6	%		1,051.5		1,087.6		-3.3	%		4,388.6		4,852.7		-9.6	%
	Ÿ Internet		707.3		648.5		9.1	%		707.3		676.0		4.6	%		2,735.1		2,574.1		6.3	%
	Ÿ Data		328.9		322.7		1.9	%		328.9		326.9		0.6	%		1,318.0		1,316.8		0.1	%
	Ÿ Real estate		104.0		76.7		35.7	%		104.0		144.6		-28.1	%		394.0		293.8		34.1	%
	Ÿ Others		80.7		80.8		-0.1	%		80.7		72.6		11.2	%		313.4		257.5		21.7	%

	Operating Expense		4,886.7		5,297.1		-7.7	%		4,886.7		4,638.9		5.3	%		18,180.2		18,010.6		0.9	%
	Ÿ Labor expense		574.5		1,498.5		-61.7	%		574.5		545.8		5.3	%		2,351.9		3,517.2		-33.1	%
	Ÿ Commission		371.0		346.7		7.0	%		371.0		332.2		11.7	%		1,354.8		1,253.2		8.1	%
	Ÿ Sales promotion		274.7		275.4		-0.2	%		274.7		273.5		0.4	%		1,092.9		1,025.7		6.6	%
	Ÿ Sales commission		406.2		398.4		2.0	%		406.2		512.8		-20.8	%		1,757.4		1,957.2		-10.2	%
	Ÿ Bad debt expense		65.7		15.7		317.4	%		65.7		29.3		123.9	%		145.6		72.9		99.7	%
	Ÿ Depreciation & Amortization		788.4		857.7		-8.1	%		788.4		717.3		9.9	%		2,914.4		3,120.3		-6.6	%
	Ÿ Advertising		43.3		43.9		-1.5	%		43.3		36.8		17.7	%		164.5		163.5		0.6	%
	Ÿ Repair & Maintenance		61.4		55.0		11.8	%		61.4		23.9		156.8	%		142.7		147.9		-3.5	%
	Ÿ Cost of goods sold		1,233.0		828.1		48.9	%		1,233.0		1,147.0		7.5	%		4,288.3		3,145.9		36.3	%
	Ÿ Cost of service provided		629.4		574.8		9.5	%		629.4		618.3		1.8	%		2,403.8		2,167.1		10.9	%
	Ÿ Research & Development		84.0		80.5		4.3	%		84.0		70.9		18.4	%		278.7		237.2		17.5	%
	Ÿ Activation, Installation & A/S cost		100.2		97.8		2.4	%		100.2		96.9		3.3	%		375.7		338.0		11.2	%
	Ÿ Others		254.8		224.7		13.4	%		254.8		234.1		8.8	%		909.7		864.7		5.2	%

	Operating Income		304.7		-549.5		TB			304.7		594.5		-48.7	%		2,053.3		945.2		117.2	%
	EBITDA		1,093.2		308.2		254.7	%		1,093.2		1,311.7		-16.7	%		4,967.7		4,065.4		22.2	%

	Non-operating Income		143.0		152.2		-6.0	%		143.0		83.9		70.5	%		573.1		856.6		-33.1	%
	Non-operating Expense		312.7		236.0		32.5	%		312.7		226.2		38.2	%		1,109.4		1,092.6		1.5	%

	Income before Income Taxes		135.1		-633.3		TB			135.1		452.1		-70.1	%		1,517.0		709.2		113.9	%
	Income tax		30.0		-185.0					30.0		101.6		-70.5	%		345.1		104.1		231.5	%

	Net Income		105.1		-448.3		TB			105.1		350.6		-70.0	%		1,171.9		605.1		93.7	%

		‘10-4Q		‘09-4Q		YoY			‘10-4Q		‘10-3Q		QoQ			2010		2009		YoY
	CAPEX		1,238.8		1,471.6		-15.8	%		1,238.8		647.2		91.4	%		3,057.2		2,958.7		3.3	%

Sales of Merchandise consists of sales of handsets and others.


B.	Balance Sheet	‘10-4Q			‘09-4Q			YoY			‘10-4Q			‘10-3Q			QoQ
	Total Assets		24,101.0			24,342.5			-1.0	%		24,101.0			24,394.4			-1.2	%
	• Current assets		6,111.8			6,474.6			-5.6	%		6,111.8			6,874.6			-11.1	%
	• Quick assets		5,552.4			5,867.8			-5.4	%		5,552.4			6,361.0			-12.7	%
	• Cash & cash equivalents		935.1			1,574.6			-40.6	%		935.1			1,732.4			-46.0	%
	• Accounts receivables		3,635.5			3,491.1			4.1	%		3,635.5			3,702.6			-1.8	%
	• Inventories		559.5			606.8			-7.8	%		559.5			513.5			8.9	%
	• Non-current assets		17,989.2			17,867.9			0.7	%		17,989.2			17,519.9			2.7	%
	• Investment		1,510.6			1,274.7			18.5	%		1,510.6			1,519.8			-0.6	%
	• Investment stocks accounted in equity method		1,299.6			1,081.0			20.2	%		1,299.6			1,314.4			-1.1	%
	• Available-for-sale securities		81.3			60.3			34.8	%		81.3			65.4			24.2	%
	• Tangible assets		13,947.8			14,203.8			-1.8	%		13,947.8			13,714.5			1.7	%
	• Intangible assets		1,138.0			1,206.6			-5.7	%		1,138.0			1,036.1			9.8	%
	• Others		1,392.7			1,182.8			17.7	%		1,392.7			1,249.4			11.5	%
	Total Liabilities		13,060.1			13,944.2			-6.3	%		13,060.1			13,436.4			-2.8	%
	• Current liabilities		6,112.8			5,684.3			7.5	%		6,112.8			6,164.4			-0.8	%
	• Current portion of LT debt		1,940.4			1,024.7			89.4	%		1,940.4			2,184.2			-11.2	%
	• Current portion of LT accrued payables		168.3			148.5			13.3	%		168.3			166.4			1.2	%
	• Accounts payable		1,231.8			1,350.1			-8.8	%		1,231.8			1,576.9			-21.9	%
	• Others		2,772.3			3,160.9			-12.3	%		2,772.3			2,236.8			23.9	%
	• Non-current liabilities		6,947.3			8,259.9			-15.9	%		6,947.3			7,272.0			-4.5	%
	• Bonds		5,528.6			6,739.1			-18.0	%		5,528.6			5,844.3			-5.4	%
	• Long-term borrowings		28.3			63.1			-55.1	%		28.3			30.9			-8.4	%
	• Long-term accounts payables		—			160.8			-100.0	%		—			—
	• Installation deposit		616.1			696.7			-11.6	%		616.1			634.3			-2.9	%
	• Others		774.3			600.2			29.0	%		774.3			762.4			1.6	%
	Total Stockholders’ Equity		11,040.9			10,398.3			6.2	%		11,040.9			10,958.0			0.8	%
	• Common stock		1,564.5			1,564.5			0.0	%		1,564.5			1,564.5			0.0	%
	• Capital surplus		1,449.8			1,448.6			0.1	%		1,449.8			1,449.6			0.0	%
	• Retained earnings		9,371.8			9,595.5			-2.3	%		9,371.8			9,266.7			1.1	%
	• Capital adjustment		-1,262.5			-2,165.7			-41.7	%		-1,262.5			-1,262.9			0.0	%
	• Treasury stock		-955.1			-956.2			-0.1	%		-955.1			-955.1			0.0	%
	• Gain/loss on disposal of treasury stock		-0.3			-890.7			-100.0	%		-0.3			-0.3			0.0	%
	• Accumulated Other Comprehensive Income		-82.6			-44.5			85.5	%		-82.6			-59.9			38.0	%

	Total interesting bearing debt		7,665.7			8,136.3			-5.8	%		7,665.7			8,225.9			-6.8	%
	Net debt		6,562.3			6,252.4			5.0	%		6,562.3			6,327.1			3.7	%
	Net debt (including LT A/P)		6,730.6			6,561.7			2.6	%		6,730.6			6,493.5			3.7	%

	Debt/ equity ratio		118.3	%		134.1	%		-15.8	%p		118.3	%		122.6	%		4.3	%p
	Net debt/ equity ratio		59.4	%		60.1	%		-0.7	%p		59.4	%		57.7	%		1.7	%p
	Net debt/ equity ratio (including LT A/P)		61.0	%		63.1	%		-2.1	%p		61.0	%		59.3	%		1.7	%p


2. Operating Results		(unit : KRW bn)


A.	Wireless Revenue	‘10-4Q		‘09-4Q		YoY			‘10-4Q		‘10-3Q		QoQ			2010		2009		YoY
	• Service revenue		1,728.8		1,695.3		2.0	%		1,728.8		1,766.4		-2.1	%		6,932.5		6,462.3		7.3	%
	• Monthly base fee		633.2		577.7		9.6	%		633.2		642.2		-1.4	%		2,504.0		2,211.5		13.2	%
	• Airtime charge		358.5		436.5		-17.9	%		358.5		378.6		-5.3	%		1,559.6		1,714.1		-9.0	%
	• VAS others		63.1		58.9		7.1	%		63.1		67.6		-6.8	%		251.1		247.1		1.6	%
	• Wireless data		414.6		319.1		29.9	%		414.6		371.6		11.6	%		1,474.3		1,185.4		24.4	%
	• Interconnection revenue		175.6		214.8		-18.3	%		175.6		229.3		-23.4	%		842.4		840.5		0.2	%
	• Activation fee		30.5		23.7		28.7	%		30.5		37.3		-18.2	%		130.9		113.9		14.9	%
	• Others		53.3		64.5		-17.4	%		53.3		39.7		34.5	%		170.2		150.0		13.5	%
	• Handset sales		1,190.2		772.9		54.0	%		1,190.2		1,159.2		2.7	%		4,152.0		3,198.5		29.8	%

			2,919.0		2,468.2		18.3	%		2,919.0		2,925.6		-0.2	%		11,084.5		9,660.9		14.7	%


• Monthly base fee			Total subscriber growth and rising high monthly fee subscribers resulted in YoY growth. However, increasing tariff discounts led to QoQ drop.

• Airtime charge			Expanded tariff discount rate plans such as Smart Sponsors caused 17.9% YoY drop. Annually, sharply growing high monthly fee flat rate subscribers led to 9% YoY decrease.

• Wireless data			Surging data traffics from increasing adoption of Smartphones led to healthy QoQ and YoY growth.

• Interconnection revenue			Due to reflection of new interconnection rates, its revenue dropped temporarily.

B.	Telephone Revenue	‘10-4Q		‘09-4Q		YoY			‘10-4Q		‘10-3Q		QoQ			2010		2009		YoY
	• Subscriber connection		257.8		285.8		-9.8	%		257.8		262.8		-1.9	%		1,066.0		1,186.4		-10.1	%
	• Activation & Installation fee		7.1		8.1		-12.5	%		7.1		7.0		0.5	%		29.9		35.9		-16.8	%
	• Monthly base fee		207.5		232.0		-10.6	%		207.5		210.0		-1.2	%		857.1		975.6		-12.1	%
	• Interconnection		43.3		45.7		-5.4	%		43.3		45.8		-5.4	%		179.1		174.9		2.4	%
	• Local		137.7		164.0		-16.1	%		137.7		157.7		-12.7	%		632.2		756.7		-16.5	%
	• Local airtime charge		74.7		105.7		-29.3	%		74.7		89.2		-16.2	%		365.1		464.8		-21.4	%
	• Local interconnection		17.8		19.1		-6.6	%		17.8		18.5		-3.4	%		73.3		75.5		-2.9	%
	• Others		45.2		39.3		15.0	%		45.2		50.1		-9.8	%		193.8		216.4		-10.5	%
	• Domestic long distance		72.9		103.1		-29.3	%		72.9		82.9		-12.1	%		341.8		446.9		-23.5	%
	• DLD airtime charge		68.5		98.4		-30.4	%		68.5		78.4		-12.6	%		323.7		428.7		-24.4	%
	• DLD interconnection		4.2		4.5		-6.6	%		4.2		4.4		-2.8	%		17.5		17.3		0.9	%
	• Others		0.2		0.2		-25.4	%		0.2		0.2		-0.3	%		0.7		0.9		-24.4	%
	• LM revenue		228.5		266.4		-14.2	%		228.5		232.8		-1.9	%		956.1		1,153.9		-17.1	%
	• International long distance		27.5		31.9		-13.9	%		27.5		27.5		-0.3	%		112.2		135.6		-17.3	%
	• International long distance settlement		46.6		47.0		-1.1	%		46.6		53.1		-12.4	%		205.5		219.6		-6.4	%
	• VoIP		105.1		81.4		29.1	%		105.1		96.4		9.1	%		380.2		261.0		45.7	%
	• VAS		94.9		83.6		13.5	%		94.9		92.2		2.9	%		360.7		328.9		9.7	%
	• Public phones & 114 service		33.1		38.1		-13.2	%		33.1		35.5		-6.8	%		141.1		154.6		-8.7	%
	• Others		47.4		49.4		-3.9	%		47.4		46.6		1.9	%		192.8		209.1		-7.8	%

			1,051.5		1,150.8		-8.6	%		1,051.5		1,087.6		-3.3	%		4,388.6		4,852.7		-9.6	%


• Local, DLD & LM			Weakening subscriber number and declining traffics resulted in YoY and QoQ drop.

• VoIP			Fast rising subscriber base resulted in YoY and QoQ growth.


C.	Internet Revenue	‘10-4Q		‘09-4Q		YoY			‘10-4Q		‘10-3Q		QoQ			2010		2009		YoY
	Internet Access		529.9		505.1		4.9	%		529.9		504.0		5.1	%		2,055.6		2,060.4		-0.2	%
	• Broadband		473.2		463.1		2.2	%		473.2		472.5		0.1	%		1,880.9		1,905.5		-1.3	%
	• Nespot		4.7		5.4		-13.4	%		4.7		4.7		-0.6	%		19.4		23.7		-18.2	%
	• WiBro		49.4		35.4		39.7	%		49.4		25.0		97.6	%		148.7		127.0		17.1	%
	• Others		2.5		1.2		118.1	%		2.5		1.7		48.0	%		6.6		4.1		60.1	%
	Internet Application		177.4		143.4		23.8	%		177.4		172.0		3.1	%		679.5		513.7		32.3	%
	• IDC		58.8		59.5		-1.2	%		58.8		59.1		-0.4	%		240.0		216.0		11.1	%
	• bizmeka		40.5		32.8		23.5	%		40.5		43.1		-6.0	%		175.6		125.4		40.0	%
	• IPTV		60.3		33.3		80.8	%		60.3		51.8		16.3	%		192.9		99.4		94.0	%
	• Others		17.8		17.7		0.7	%		17.8		18.0		-1.1	%		71.0		72.9		-2.6	%

			707.3		648.5		9.1	%		707.3		676.0		4.6	%		2,735.1		2,574.1		6.3	%


	• Broadband		Total subscriber gain led to QoQ and YoY growth. But ARPU erosion from increasing discounts for bundling and long-term contract subscribers caused annual revenue drop.

	• WiBro		Increasing WiBro-based device sales led to 97.6% QoQ YoY growth.

	• IPTV		Expanding subscriber base, especially for Olleh TV Skylife, resulted in annual growth of 94% YoY.

D.	Data Revenue	‘10-4Q		‘09-4Q		YoY			‘10-4Q		‘10-3Q		QoQ			2010		2009		YoY
	• Leased line		180.8		186.2		-2.9	%		180.8		179.3		0.9	%		733.1		767.2		-4.4	%
	• Local		76.2		77.0		-1.0	%		76.2		74.5		2.3	%		302.1		303.0		-0.3	%
	• Domestic long distance		67.8		65.7		3.3	%		67.8		67.8		0.1	%		276.3		263.7		4.8	%
	• International long distance		3.8		6.4		-40.2	%		3.8		4.1		-6.1	%		21.2		26.5		-19.9	%
	• Broadcasting & others		32.9		37.1		-11.3	%		32.9		32.9		0.0	%		133.4		174.0		-23.3	%
	• Kornet		61.3		59.9		2.4	%		61.3		61.3		0.1	%		244.1		249.4		-2.1	%
	• VPN		28.0		22.8		22.9	%		28.0		28.7		-2.4	%		106.2		75.2		41.2	%
	• National network ATM		7.0		10.3		-31.4	%		7.0		7.1		-0.3	%		29.5		64.8		-54.5	%
	• Satellite		34.8		26.6		30.7	%		34.8		34.8		0.0	%		141.1		106.8		32.1	%
	• Others		17.0		17.0		0.0	%		17.0		15.9		7.0	%		63.9		53.3		20.1	%

			328.9		322.7		1.9	%		328.9		326.9		0.6	%		1,318.0		1,316.8		0.1	%


E.	Operating Expense	‘10-4Q		‘09-4Q		YoY			‘10-4Q		‘10-3Q		QoQ			2010		2009		YoY
	Labor Expense		574.5		1,498.5		-61.7	%		574.5		545.8		5.3	%		2,351.9		3,517.2		-33.1	%
	Ÿ Salaries & wages		456.3		478.2		-4.6	%		456.3		454.3		0.4	%		1,840.5		1,914.2		-3.8	%
	Ÿ Provision for retirement		42.0		905.2		-95.4	%		42.0		15.0		180.8	%		207.6		1,079.0		-80.8	%
	Ÿ Employee welfare		76.3		115.2		-33.8	%		76.3		76.5		-0.3	%		303.8		524.1		-42.0	%
	Commission		371.0		346.7		7.0	%		371.0		332.2		11.7	%		1,354.8		1,253.2		8.1	%
	Sales Promotion		274.7		275.4		-0.2	%		274.7		273.5		0.4	%		1,092.9		1,025.7		6.6	%
	Sales Commission		406.2		398.4		2.0	%		406.2		512.8		-20.8	%		1,757.4		1,957.2		-10.2	%
	Bad Debt Expenses		65.7		15.7		317.4	%		65.7		29.3		123.9	%		145.6		72.9		99.7	%
	Depreciation & Amortization		788.4		857.7		-8.1	%		788.4		717.3		9.9	%		2,914.4		3,120.3		-6.6	%
	Advertising		43.3		43.9		-1.5	%		43.3		36.8		17.7	%		164.5		163.5		0.6	%
	Repair & Maintenance		61.4		55.0		11.8	%		61.4		23.9		156.8	%		142.7		147.9		-3.5	%
	Cost of Goods Sold		1,233.0		828.1		48.9	%		1,233.0		1,147.0		7.5	%		4,288.3		3,145.9		36.3	%
	Ÿ Cost of mobile handset sold		1,150.1		724.2		58.8	%		1,150.1		1,076.5		6.8	%		3,963.1		2,802.1		41.4	%
	Ÿ Others		82.9		103.9		-20.2	%		82.9		70.4		17.7	%		325.1		343.8		-5.4	%
	Cost of Service Provided		629.4		574.8		9.5	%		629.4		618.3		1.8	%		2,403.8		2,167.1		10.9	%
	Ÿ Cost of service		184.2		150.9		22.1	%		184.2		156.4		17.8	%		649.1		536.7		21.0	%
	Ÿ International long distance settlement cost		78.8		65.2		20.9	%		78.8		71.9		9.7	%		284.1		262.8		8.1	%
	Ÿ Interconnection expense		298.3		306.3		-2.6	%		298.3		313.4		-4.8	%		1,222.5		1,204.2		1.5	%
	Ÿ Others		68.1		52.4		30.0	%		68.1		76.7		-11.2	%		248.1		163.5		51.7	%
	Research & Development		84.0		80.5		4.3	%		84.0		70.9		18.4	%		278.7		237.2		17.5	%
	Activation, Installation & A/S Cost		100.2		97.8		2.4	%		100.2		96.9		3.3	%		375.7		338.0		11.2	%
	Others		254.8		224.7		13.4	%		254.8		234.1		8.8	%		909.7		864.7		5.2	%

			4,886.7		5,297.1		-7.7	%		4,886.7		4,638.9		5.3	%		18,180.2		18,010.6		0.9	%


	Ÿ Labor Expense		Annually declined 33.1% YoY because of labour force reduction in 4Q09.

	Ÿ Depreciation & Amortization		Increased quarterly Capex led to 9.9% QoQ rise. But, declining depreciable assets and resulted in 8.1% YoY drop.

	Ÿ Cost of Goods Sold		Increased 48.9% QoQ mainly from escalating sales of smartphones.

	Ÿ Cost of Service Provided		Interconnection expense declined QoQ and YoY after reflecting new rates.

	Ÿ Marketing Cost	‘10-4Q		‘09-4Q		YoY			‘10-4Q		‘10-3Q		QoQ			2010		2009		YoY
	Ÿ Sales Promotion		274.7		275.4		-0.2	%		274.7		273.5		0.4	%		1,092.9		1,025.7		6.6	%
	Ÿ Sales Commission		406.2		398.4		2.0	%		406.2		512.8		-20.8	%		1,757.4		1,957.2		-10.2	%
	Ÿ Advertising		43.3		43.9		-1.5	%		43.3		36.8		17.7	%		164.5		163.5		0.6	%
	(Profits from mobile handset sold)		-40.1		-48.7		-17.7	%		-40.1		-82.6		-51.5	%		-188.8		-396.4		-52.4	%

			684.1		669.0		2.3	%		684.1		740.5		-7.6	%		2,825.9		2,749.9		2.8	%


	Ÿ Interconnection Expenses	‘10-4Q		‘09-4Q		YoY			‘10-4Q		‘10-3Q		QoQ			2010		2009		YoY
	Ÿ MM		180.3		176.8		2.0	%		180.3		180.4		-0.1	%		711.4		680.1		4.6	%
	Ÿ ML		5.1		7.6		-32.8	%		5.1		7.2		-28.7	%		27.5		33.9		-18.8	%
	Ÿ LM		84.5		99.1		-14.8	%		84.5		100.7		-16.2	%		381.5		407.9		-6.5	%
	Ÿ Others		28.4		22.8		24.9	%		28.4		25.1		13.5	%		102.1		82.3		24.0	%

			298.3		306.3		-2.6	%		298.3		313.4		-4.8	%		1,222.5		1,204.2		1.5	%

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


F.	Non-operating	‘10-4Q		‘09-4Q		YoY			‘10-4Q		‘10-3Q		QoQ			2010		2009		YoY
	Ÿ Interest Income		38.3		38.3		0.0	%		38.3		34.5		10.8	%		127.4		180.4		-29.4	%
	Ÿ Gain on foreign currency transaction		5.2		5.7		-9.0	%		5.2		4.5		15.4	%		19.1		32.7		-41.7	%
	Ÿ Gain on foreign currency translation		6.6		55.0		-88.0	%		6.6		51.4		-87.1	%		64.9		238.0		-72.7	%
	Ÿ Gain on Equity Method		21.3		38.1		-44.1	%		21.3		30.3		-29.7	%		104.6		113.0		-7.4	%
	Ÿ Gain on disposal of tangible assets		2.3		1.8		26.1	%		2.3		0.2		1029.8	%		13.5		5.3		156.1	%
	Ÿ Others		69.3		13.2		425.2	%		69.3		-37.1		NA			243.5		287.2		-15.2	%

	Non-operating Income		143.0		152.2		-6.0	%		143.0		83.9		70.5	%		573.1		856.6		-33.1	%

	Ÿ Interest Expense		123.7		132.2		-6.5	%		123.7		125.0		-1.0	%		504.9		499.5		1.1	%
	Ÿ Loss on foreign currency transaction		4.9		6.9		-29.5	%		4.9		4.6		5.8	%		21.1		37.5		-43.8	%
	Ÿ Loss on foreign currency translation		5.6		-2.6		NA			5.6		-101.3		NA			31.4		17.2		82.4	%
	Ÿ Loss on Equity Method		10.0		10.4		-4.0	%		10.0		3.5		185.8	%		38.9		106.4		-63.5	%
	Ÿ Loss on disposal of tangible assets		54.9		53.8		1.9	%		54.9		71.8		-23.6	%		173.4		121.5		42.8	%
	Ÿ Others		113.7		35.2		222.7	%		113.7		122.6		-7.3	%		339.6		310.5		9.4	%

	Non-operating Expense		312.7		236.0		32.5	%		312.7		226.2		38.2	%		1,109.4		1,092.6		1.5	%


	Ÿ FX related accounts		Stabilized Korean currency against US$ reduced QoQ damages in FX related accounts.

	Ÿ Equity method account		Shrinking deficits from KTM&S reduced its annual loss by 63.5% YoY, enhancing the net account.

3. Operating Highlights


1. Fixed-Line (‘000)	‘10-4Q			‘09-4Q			YoY			‘10-4Q			‘10-3Q			QoQ

(1) Telephony		19,359			19,753			-2.0	%		19,359			19,432			-0.4	%
(PSTN)		16,635			18,052			-7.9	%		16,635			16,942			-1.8	%
Local		15,662			17,069			-8.2	%		15,662			15,966			-1.9	%
Group		972			983			-1.1	%		972			976			-0.4	%
(VoIP)		2,724			1,701			60.1	%		2,724			2,490			9.4	%
(2) Broadband		7,424			6,953			6.8	%		7,424			7,315			1.5	%
(3) IPTV		2,085			1,172			77.9	%		2,085			1,790			16.5	%
(4) Nespot		266			296			-10.4	%		266			275			-3.5	%
(5) WiBro		377			287			31.4	%		377			348			8.4	%

2. Wireless	‘10-4Q			‘09-4Q			YoY			‘10-4Q			‘10-3Q			QoQ

(1) Subscribers (‘000)
Gross addition		1,636			1,551			5.5	%		1,636			2,037			-19.7	%
Deactivation		1,427			1,439			-0.8	%		1,427			1,800			-20.7	%
Net addition		209			112			86.6	%		209			237			-11.9	%
Churn rate (%)		2.9	%		2.7	%		0.2	%p		2.9	%		3.5	%		-0.7	%p

		16,041			15,016			6.8	%		16,041			15,831			1.3	%


(2) ARPU (won)
Monthly base fee		13,480			13,066			3.2	%		13,480			13,881			-2.9	%
Airtime charge		7,633			9,874			-22.7	%		7,633			8,184			-6.7	%
VAS / others		1,343			1,332			0.8	%		1,343			1,462			-8.2	%
Data		8,824			7,218			22.3	%		8,824			8,031			9.9	%
Interconnection revenue		3,743			4,859			-23.0	%		3,743			4,957			-24.5	%

Excluding interconnection		31,281			31,490			-0.7	%		31,281			31,559			-0.9	%
Including interconnection		35,024			36,349			-3.6	%		35,024			36,515			-4.1	%

*	Wireless ARPU excluding activation fee.