XML 38 R26.htm IDEA: XBRL DOCUMENT
v3.23.1

Commitments and Contingencies | 12 Months Ended
--- | ---
Dec. 31, 2022
Text block [abstract] |
Commitments and Contingencies |
20. | Commitments and Contingencies
As at December 31, 2022, major commitments with local financial institutions are as follows:
(in millions of Korean won and foreign currencies in thousands) |  | Financial institution |  | Limit |  |  | Used amount |
Bank overdraft |  | Kookmin Bank and others |  |  | 372,000 |  |  |  | — |
Inter-Korean Cooperation Fund |  | Export-Import Bank of Korea |  |  | 37,700 |  |  |  | 1,974 |
Economic Cooperation Business Insurance |  | Export-Import Bank of Korea |  |  | 3,240 |  |  |  | 1,732 |
Collateralized loan on electronic accounts receivable-trade |  | Kookmin Bank and others |  |  | 567,150 |  |  |  | 28,298 |
Plus electronic notes payable |  | Industrial Bank of Korea |  |  | 50,000 |  |  |  | 1,663 |
Working capital loan |  | Korea Development Bank and others |  |  | 1,415,600 |  |  |  | 165,100 |
|  | Shinhan Bank |  | USD | 72,507 |  |  | USD | 72,507 |
|  | Woori Bank |  | EUR | 7,700 |  |  | EUR | 7,700 |
Facility loans |  | Shinhan Bank and others |  |  | 824,000 |  |  |  | 309,680 |
Derivatives transaction limit |  | Shinhan Bank |  |  | 8,000 |  |  |  | 8,000 |
|  | Korea Development Bank and others |  | USD | 2,510,510 |  |  | USD | 1,970,000 |
|  | DBS Bank |  | SGD | 284,000 |  |  | SGD | 284,000 |
|  | Citi Bank |  | USD | 400,000 |  |  | JPY | 400,000 |
|  |  |  |  |  |  |  | USD | 100,000 |
Total |  | KRW |  |  | 3,277,690 |  |  |  | 516,447 |
|  | USD |  |  | 2,983,017 |  |  |  | 2,142,507 |
|  | EUR |  |  | 7,700 |  |  |  | 7,700 |
|  | SGD |  |  | 284,000 |  |  |  | 284,000 |
|  | JPY |  |  | — |  |  |  | 400,000 |
As at December 31, 2022, guarantees received from financial institutions are as follows:
(in millions of Korean won and foreign currencies in thousands) |  | Financial institution |  |  |  |  | Limit |
Hana Bank |  | Guarantee for payment in Korean currency |  |  |  |  |  |  | 4,000 |
|  | Comprehensive credit line and others |  |  |  |  |  |  | 3,100 |
|  | Guarantee for payment in foreign currency |  |  | USD |  |  |  | 273 |
|  | Comprehensive credit line and others |  |  | USD |  |  |  | 10,300 |
Kookmin Bank |  | Guarantee for payment in foreign currency |  |  | USD |  |  |  | 6,484 |
Shinhan Bank |  | Guarantee for payment in Korean currency and others |  |  |  |  |  |  | 36,298 |
|  | Guarantee for payment in foreign currency and others |  |  | USD |  |  |  | 77,837 |
Woori Bank |  | Guarantee for payment in Korean currency |  |  |  |  |  |  | 5,200 |
|  | Guarantee for payment in foreign currency |  |  | USD |  |  |  | 7,000 |
Korea Development Bank |  | Refund guarantee for advances received |  |  | USD |  |  |  | 6,880 |
HSBC |  | Guarantees for depositions |  |  | USD |  |  |  | 871 |
Seoul Guarantee Insurance Company |  | Performance guarantee and others |  |  |  |  |  |  | 783,247 |
Korea Software Financial Cooperative |  | Performance guarantee and others |  |  |  |  |  |  | 1,445,072 |
Korea Specialty Contractor Financial Cooperative |  | Performance guarantee and others |  |  |  |  |  |  | 531 |
Korea Housing Finance Corporation |  | Performance guarantee and others |  |  |  |  |  |  | 14,464 |
Information & Communication Financial Cooperative |  | Performance guarantee and others |  |  |  |  |  |  | 28,027 |
Total |  |  |  |  | KRW |  |  |  | 2,319,939 |
|  |  |  |  | USD |  |  |  | 109,645 |
As at December 31, 2022, guarantees provided by the Group to a third party, are as follows:
(in millions of Korean won) |  | Subject to payment guarantees |  | Creditor |  | Limit |  |  | Used amount |  |  | Period |
KT Engineering Co., Ltd. 1 |  | Gasan Solar Power Plant Inc. |  | Shinhan Bank |  |  | 4,700 |  |  |  | 672 |  |  |  | Jan. 7, 2010 ~ Jan. 8, 2025 |
KT Engineering Co., Ltd. 1 |  | SPP Inc. |  | Suhyup Bank |  |  | 3,250 |  |  |  | 345 |  |  |  | Feb. 17, 2014 ~ Feb. 16, 2024 |
KT Engineering Co., Ltd. 1 |  | Korea Cell Inc. |  | Suhyup Bank |  |  | 3,250 |  |  |  | 338 |  |  |  | Feb. 17, 2014 ~ Feb. 16, 2024 |
KT Engineering Co., Ltd. 1 |  | San-Ya Agricultural Association Corporation |  | Suhyup Bank |  |  | 3,250 |  |  |  | 345 |  |  |  | Feb. 17, 2014 ~ Feb. 16, 2024 |
KT Alpha Co., Ltd. (KT Hitel Co., Ltd.) |  | Cash payers |  | T-commerce cash payers |  |  | 860 |  |  |  | — |  |  |  | Apr. 14, 2022 ~ Apr. 14, 2023 |
Nasmedia Co., Ltd. |  | Stockholders Association Members |  | Korea Securities Finance Corp |  |  | 5,654 |  |  |  | 986 |  |  |  | — |
| 1 | According to the above payment guarantee, KT Engineering, a subsidiary of the Group, will have an obligation for repayment if the principal borrower does not repay the borrowing.
As at December 31, 2022, the details of the issuance of real estate collateral trust and beneficiary certificates of the Group are as follows:
(in millions of Korean won) |  |  |  |  | Commitment (limit) amount |  |  | Amount provided as collateral for beneficiary rights |
Collateral assets |  | Placing |  |  | Trust collateral beneficiary
Real Estate Collateral Trust 1 |  |  | 1st place |  |  | NongHyup Bank |  | ￦ | 100,000 |  |  | ￦ | 120,000 |
|  |  |  |  |  | Kyobo Life Insurance |  |  | 180,000 |  |  |  | 216,000 |
|  |  |  |  |  | Standard Chartered Bank Korea Limited |  |  | 120,000 |  |  |  | 144,000 |
|  |  |  |  |  | Samsung Life Insurance |  |  | 100,000 |  |  |  | 120,000 |
|  |  | 2nd place |  |  | Industrial Bank of Korea |  |  | 40,000 |  |  |  | 48,000 |
|  |  |  |  |  | Korea Investment Capital |  |  | 40,000 |  |  |  | 48,000 |
|  |  |  |  |  | BNK Capital |  |  | 30,000 |  |  |  | 36,000 |
|  |  |  |  |  | Standard Chartered Bank Korea Limited |  |  | 20,000 |  |  |  | 24,000 |
|  |  |  |  |  | NH Capital |  |  | 20,000 |  |  |  | 24,000 |
|  |  | 3rd place 2 |  |  | LOTTE Engineering & Construction |  |  | — |  |  |  | 736,921 |
| 1 | The Group provides a certificate of beneficiary rights for land classified as investment properties and inventory assets as collateral in connection with the above real estate collateral trust.
| 2 | The Group provides LOTTE Engineering & Construction with a certificate of third-priority beneficiary rights as collateral in relation to the construction contract amount of ￦ 614,101 million.
The Controlling Company is jointly and severally obligated with KT Sat Inc. to pay KT Sat Inc.’s liabilities incurred prior to spin-off. As at December 31, 2022, the Controlling Company and KT Sat Inc. are jointly and severally liable for reimbursement of ￦ 653 million. For the years ended December 31, 2021 and 2022, the Group made agreements with the Securitization Specialty Companies (2022: First 5G 61 th to 66 th Securitization Specialty Co., Ltd., 2021: First 5G 55 th to 60 th Securitization Specialty Co., Ltd.), and disposed of its trade receivables related to handset sales. The Group also made asset management agreements with each securitization specialty company and in accordance with the agreement the Group will receive asset management fees upon liquidation of securitization specialty company. As at December 31, 2022, the Group is a defendant in 189 lawsuits with the total claimed amount of ￦ 80,279 million (2021: ￦ 101,597 million). As at December 31, 2022, litigation provisions of ￦ 36,329 million for pending lawsuits and unasserted claims are recorded as liabilities for potential loss in the ordinary course of business. The final outcomes of the cases cannot be estimated at the end of the reporting period. According to the financial and other covenants included in certain debentures and borrowings, the Group is required to maintain certain financial ratios such as debt-to-equity ratio, use the funds for the designated purpose and report to the creditors periodically. The covenant also contains restriction on provision of additional collateral and disposal of certain assets. At the end of the reporting period, the Group participates in Algerie Sidi Abdela new town development consortium (percentage of ownership: 2.5%) and has joint liability with other consortium participants. At the end of the reporting period, contract amount of property and equipment acquisition agreement made but not yet recognized amounts to ￦ 1,294,823 million (2021: ￦ 1,336,758 million). A t the end of the reporting period, there are derivatives generated by the Group granting Drag-Along Right to financial investors participating in paid-in capital increase of K Bank (Note 7). For the year ended December 31, 2022, the Group entered into an agreement with the seller, who participated in the acquisition of shares in MILLIE Co., Ltd . If certain conditions are not met in the future as disclosed in the terms and conditions of the agreement, the seller may exercise Tag-Along Right, Drag-Along Right and Put Option for the ordinary and redeemable convertible preferred shares it owns (Note 7). For the year ended December 31, 2022, the Group entered into an agreement with financial investors, who participated in the acquisition of shares in Epsilon Global Communications Pte. Ltd. If certain conditions are not met in the future as disclosed in the terms and conditions of the agreement, financial investors may exercise Tag-Along Right, Drag-Along Right and the right to sell shares for the convertible preferred shares it owns (Note 7). The Group has an additional investment obligation under the agreement to Future Innovation Private Equity Fund No.3. For the year ended December 31, 2022, the remaining amount of ￦ 5,473 million and USD 34,050 thousand will be invested in the Capital Call method later. The Group has an obligation to provide financial support as a construction investor during the construction period with respect to K Defense Co., Ltd. established in accordance with the Private Investment Act on Social Infrastructure, and there is a joint responsibility obligation. During the operating period, as an operating investor, the group has an obligation to provide financial support. As at December 31, 2022, the Group entered into a shareholders’ agreement with CJ ENM Co., Ltd., which signed a business cooperation contract with KT Studio Genie Co., Std. If certain conditions under the agreement are not satisfied, CJ ENM Co., Ltd. may exercise its stock purchase right of the Group. As at December 31, 2022, the Group entered into a stock sale contract with HYUNDAI MOBIS and HYUNDAI MOTOR COMPANY. If a certain period of time has elapsed from the date of the contract and the acquired stocks are to be disposed to a third party, HYUNDAI MOBIS and HYUNDAI MOTOR COMPANY may exercise a preferential purchase right to designate a buyer with priority. As at December 31, 2022, the Group entered into an agreement with LS Cable & System Ltd., which participated in the stock acquisition contract of KT Submarine Co., Ltd. Under the agreement, LS Cable & System Ltd. may exercise a call-option to the Group in the future and the Group may exercise a put-option to LS Cable & System Ltd. (Note 7).

X
- Definition The disclosure of commitments and contingent liabilities. [Refer: Contingent liabilities [member]] + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Name IAS -Number 1 -IssueDate 2022-03-24 -Paragraph 10 -Subparagraph e -URI https://taxonomy.ifrs.org/xifrs-link?type=IAS&num=1&code=ifrs-tx-2022-en-r&anchor=para_10_e&doctype=Standard -URIDate 2022-03-24 + Details
Name: | ifrs-full_DisclosureOfCommitmentsAndContingentLiabilitiesExplanatory
Namespace Prefix: | ifrs-full_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Text block [abstract] + References No definition available. + Details
Name: | kt_TextBlockAbstract
Namespace Prefix: | kt_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration