Table of Contents

 

 

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

Form 6-K/A

 

 

REPORT OF FOREIGN PRIVATE ISSUER

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

THE SECURITIES EXCHANGE ACT OF 1934

For the month of March 2023

Commission File Number 1-14926

 

 

KT Corporation

(Translation of registrant’s name into English)

 

 

90, Buljeong-ro,

Bundang-gu, Seongnam-si,

Gyeonggi-do,

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  ☑                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  ☑

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

 

 

 


Table of Contents

SIGNATURES

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: March 27, 2023
KT Corporation
By:   /s/ Seunghoon Chi
Name: Seunghoon Chi
Title: Vice President
By:   /s/ Sanghyun Cho
Name: Sanghyun Cho
Title: Director


Table of Contents

Explanatory Note

This Form 6-K/A is being filed to amend KT Corporation’s amended filing of Form 6-K/A on March 10, 2023 related to its Notice of the 41st Annual General Meeting of Shareholders. KT Corporation is further amending its Agenda No. 1 (Election of Representative Director) to delete election of Mr. Yun since he resigned as a candidate for personal reason on March 27, 2023. Pursuant to Articles of Incorporation of the company, Agenda No. 4-1 (Election of Inside Director Candidate) and 4-2 (Election of Inside Director Candidate) will be discarded due to invalidation of the recommendation of the candidacy for inside director. Additionally, Agenda 7 (Employment Contract for the Representative Director) will be discarded due to the resignation of the Representative Director Candidate.


Table of Contents

Notice of the 41st Annual General Meeting of Shareholders

 

LOGO


Table of Contents

 

CONTENTS

 

Notice of the Annual General Meeting of Shareholders

     3  

ESG Management Scheme

     4  

Matters to be Reported

     7  

•  Business Report for the 41st Fiscal Year

     8  

•  Report on Evaluation Results of Management Performance for the 41st Fiscal Year

     10  

•  Report on Standards and Method of Payment for Remuneration of Directors

     11  

•  General Information for Voting

     15  

•  Report on Transaction with Major Stakeholders

     16  

Matters Requiring Resolution

     17  

•  Agenda No. 1 Election of Representative Director

     18  

•  Agenda No. 2 Approval of Financial Statements for the 41st Fiscal Year

     19  

•  Agenda No. 3 Amendment to the Articles of Incorporation

     33  

<Agenda No.3-1, Amendment to add items in Business Purposes>

     34  

<Agenda No. 3-2, Duty to report purpose of holding treasury stocks and plans for cancellation and disposal>

     35  

<Agenda No. 3-3, Shareholders approval required in case of acquisition of stock of other companies for
cross shareholding through treasury stocks
>

     36  

•  Agenda No. 4 Election of Directors

     38  

<Agenda No. 4-1, Inside Director Candidate>

     40  

<Agenda No. 4-2, Inside Director Candidate>

     41  

<Agenda No. 4-3, Outside Director Candidate>

     42  

<Agenda No. 4-4, Outside Director Candidate>

     44  

<Agenda No. 4-5, Outside Director Candidate>

     46  

<Agenda No. 4-6, Outside Director Candidate>

     47  

•  Agenda No. 5 Election of Members of Audit Committee

     51  

<Agenda No. 5-1, Election of Members of Audit Committee>

     52  

<Agenda No. 5-2, Election of Members of Audit Committee>

     54  

•  Agenda No. 6 Approval of Ceiling Amount on Remuneration for Directors

     56  

•  Agenda No. 7 Employment Contract for the Representative Director

     57  

•  Agenda No. 8 Amendment to Severance Pay Regulations for Executives

     58  

 

*

To be presented at the meeting

 

2


Table of Contents

 

Notice of the Annual General Meeting of Shareholders

March 8, 2023

To our Shareholders,

KT Corporation will be holding the 41st Annual General Meeting of Shareholders (“the Meeting”) on March 31st, 2023.

At the Meeting, “Matters to be Report” will present information on the Company’s performance as well as material issues worth noting for FY2022. Agenda items including the election of Executive directors will be submitted for shareholders’ approval.

Holders of KT Corporation’s common stock as of the close of business on December 31, 2022 will be entitled to exercise voting rights at the Meeting. Each common stock is entitled to one vote for the election of each director position and one vote for each of the other agendas.

KT Corporation would like to thank our shareholders for their continued investment and support. The Company understands that shareholders consider a range of matters before submitting their vote. We hope that our shareholders will find the information in the Convocation Notice helpful to make an informed voting decision.

We invite you to attend our upcoming Annual General Meeting on Friday March 31st, 2023. We wish you good health and look forward to your participation.

Hyeon-Mo Ku

Chief Executive Officer

 

   

Date and Time: Friday, March 31st 2023 at 9:00 a.m. (local time)

 

   

Place: Lecture Hall (2F) of KT Corporation’s R&D Center located at 151 Taebong-ro, Seocho-gu, Seoul, Korea

 

   

Record Date: December 31, 2022

 

3


Table of Contents

 

ESG Management Scheme

 

LOGO

[2023 ESG(Environmental)]

Strengthen Net-Zero implementation based on enhanced DIGICO capabilities

 

  1.

Upgrade Net-Zero strategy and RE100 implementation

 

   

Reestablish mid to long-term carbon neutral strategy

 

   

Reinforce execution to achieve RE100

 

   

Establish a system for climate change disclosures

 

  2.

Reinforcing partners for the internalization of ESG supply chain

 

   

Expand recycle business for rental mobiles

 

   

Establish a network cable/device renewing cycle

 

   

Operate a customer-oriented carbon-neutral platform

 

4


Table of Contents

[2023 ESG(Social)]

Strengthening social responsibility by spreading digital citizenship

 

  1.

Activation of One-Team digital citizenship

 

   

Establishment of the education infrastructure and expansion of education opportunities

 

   

Finding and expansion of the Digital Clean Tech

 

   

Support digital victims for the recovery of daily lives

 

  2.

Reinforcing partners for the internalization of ESG supply chain

 

   

Support overall partners for the evaluation of ESG

 

   

Intensive ESG consulting to be conducted for major 20 partners and minor 20 partners

 

  3.

Continuous resolution of the digital gap through DX linkage

 

   

Advancement of the longterm social contributoin activities incorporating DIGICO technology

 

   

Bolster accompanying with the socially disabled, utilizing govermental·municipal public budgets

 

   

Promotion of nationwide sharing activities using APP developed by KT

 

  4.

Digital based safety management and spread of the safety culture

 

   

Establish a safety first culture among KT, subsidiaries, and partners

 

   

Systemize safety management system for the potential risk of serious disasters

 

   

Introduce smart safety equipements and strengthen safety education

[2023 ESG(Governance)]

Establishment of the KT Group ESG management system and reinforcement of the cooperation between the labor union and the management

 

  1.

Enhancement KT group’s governance and compliance

 

   

Upgrade of KT compliance self-inspection platform

 

   

Conduct dedicated compliance diagnosis for the domestic and global subsidiary companies

 

   

Improve governance of the listed group companies and support external ESG assessments

 

  2.

Joint ESG management of the labor union and the management, and inspiration of the employees’ pride

 

   

Environmental campaign by the labor union and the management

 

   

ESG activities using GenieVerse(KT metaverse)

 

   

Campaign to spread digital citizenship

 

5


Table of Contents

[Enhancement of Compliance System]

<System>

 

   

Established the Compliance Committee and recruited outside expert as Chair of Compliance(April 2020)

 

   

Created compliance supporting group and regional HQs’ compliance teams

 

   

Revised operating standards for the expenses, strengthened internal control including improvement of the security management system, and enacted a code of conduct to prevent corruption

<Infra>

 

   

Established the Compliance Platform to systemize compliance-related management such as self-inspection, and awareness enhancement(March 2020)

 

   

Expanded the Compliance Platform to the Group level

<Education>

 

   

CEO’s continuous message of compliance control fostered the consensus to establish a compliance culture

 

   

290 times training session conducted for 317k employees in KT group for the past 3 years

 

   

Quarterly Compliance Day Education conducted via Compliance Platform

 

6


Table of Contents

Matters to be Reported

 

 

 

 

7


Table of Contents

 

Business Report for the 41st Fiscal Year

Pursuant to Article 447-2(Preparation of Business Report) and Article 449 of the Commercial Act (Approval and Public Notice of Financial statements, etc.), KT’s 41st annual business report is as follows:

The year 2022 marked the 3rd year since declaring transformation into a digital platform company (DIGICO), expanding business playgrounds and building a foundation for structural growth.

The telco business continued to show robust growth, and the DIGICO/B2B businesses showed accelerated growth. Moreover, KT Corporation (“the Company”) has firmly established a Group business portfolio around finance, media and contents, and real estate. (B2B+DIGICO portion accounts for 41 % of KT’s separate service revenue in FY22.)

In the B2B sector, revenue uptrend in Corp. line continued, and AI/DX businesses such as AICC began to see increases in the top-line. For Cloud/IDC business, the Company established a special entity ‘kt cloud’ on April 1st to strengthen the competitiveness. In media and contents business, following the success of our original content <Extraordinary Attorney Woo>, in December, KT and CJ ENM merged their respective OTT businesses, Seezn and Tving. Consequently, the Company rapidly secured the competitiveness for becoming a local top-tier OTT player. In finance, the business performance of BC Card has improved, following the recovery of domestic consumption from COVID-19 peak-out. K bank has also seen all indicators uptrend including loans/deposits/subscribers widening its profit since it began to make profits in the second quarter of 2021.

As of the end of 2022, the number of 5G subscribers reached 8.45 million, which is about 62% of total handset subscribers. Due to the increased demand for high quality of internet service, the sales portion of GiGA internet has been expanded, and IPTV business has initiated “home media era” reinventing its brand as ‘Genie TV’ from “olleh TV” and introducing AI-based media portal service.

KT Corporation has prepared its financial statements in accordance with K-IFRS. On a separate basis, the Company recorded a total operating revenue of KRW 18,289.3 billion, operating income of KRW 1,168.1 billion and net income of KRW 763.8 billion in FY2022.

 

8


Table of Contents

LOGO

 

LOGO

 

9


Table of Contents

 

Report on Evaluation Results of Management Performance for the 41st Fiscal Year

Pursuant to Article 34 (Execution of Employment Contract with the Representative Director), evaluations results for Representative Directors performance shall be reported at the Meeting as described below.

The Evaluation and Compensation Committee has reviewed management’s performance for FY2022. The following table summarizes annual KPI and evaluation results for the Representative Director’s short-term performance.

 

    

Annual KPI

   Weight     Score  

    Quantitative     KPI

  

- Service Revenue of KT Corporation

- Revenue Generated from DIGICO/B2B Business
   (DIGICO: Digital Platform Company)

- Operating Income of KT Corporation

     65     64.87  

    Qualitative     KPI

  

- Accelerating Growth with ‘DIGICO’

- Enhancing Group Value and
   Continuing Innovation of Management System

- Strengthening Customer Trust in KT

     35     34.50  
     

 

 

   

 

 

 

Total

     100     99.37  
     

 

 

   

 

 

 

 

10


Table of Contents

 

Report on Standards and Method of Payment for Remuneration of Directors

Pursuant to Article 31 (Remuneration and Severance Allowance for Directors) of the KT’s Articles of Incorporation, the criteria in place to determine the remuneration for executive directors and the method of payment are reported as follows:

For clarification, executive director refers to an inside director, whereas non-executive director represents an outside director.

 

 

Summary of Executive Compensation Program

The Company’s Executive Compensation program is designed to reward both short-term and long-term performances of management. The Company believes it is critical to maintain a well-balanced incentive program that encourages the management not only to achieve short-term performance, but also to strive for the Company’s long-term value enhancement. The Company operates the Evaluation and Compensation Committee, which dictates annual goals and conducts performance evaluation of the management on an annual basis. The Evaluation and Compensation Committee is also comprised of only outside directors in order to maintain objectivity and fairness of the program. Despite the existing norm among Korean companies do not disclose such standards and methods, the Company not only discloses but also reports such information to the AGM in order to guarantee transparency in executive compensation.

 

 

Components of Executive Compensation

The remuneration for executive officers consists of annual salary, short-term performance based incentives, long-term performance based incentives, severance package.

The annual salary is further separated into two major factors — base salary and payment for the responsibility of office. Compensation shall be made on a monthly basis at an amount equivalent to one-twelfth of the annual salary.

Short-term performance based incentives are paid in cash. The amount varies in accordance with each director’s result of performance evaluation by the Evaluation and Compensation Committee. Specific payment schemes related to short-term incentives are as follows:

 

   

Representative Director : 0~180% of base salary

 

   

Other Inside Directors : 0~140% of base salary

 

11


Table of Contents

Long-term performance based incentives are paid in the form of a stock grant with a lock-up period of three years. The amount is determined based on TSR (Total Shareholder’s Return), Group EBITDA and Group Revenue. Specific payment schemes related to long-term incentives are as follows:

 

   

Representative Director : 0~140% of base salary

 

   

Other Inside Directors : 0~95% of base salary

Severance payment is calculated using the following formulas:

 

   

Representative Director :

(Average monthly salary) x (number of years in service) x (5)

 

   

Other Inside Directors :

(Average monthly salary) x (number of years in service) x (3)

Fringe benefits are paid in accordance with relevant standards.

 

 

Criteria for Evaluation

The Company’s performance evaluation process begins with the setting up of annual goals by the Evaluation and Compensation Committee. Annual goals are established in alignment with the Company’s overall operational and financial goals and the ultimate goal of improving shareholders’ value.

Short-term Performance

Short-term performance is comprised of quantitative and qualitative factors. Typically, quantitative goals are related to financial and operational performances, whereas qualitative goals are focused on achieving operational and strategic goals to further enhance long-term competitiveness. Weighted Key Performance Index (KPI) is in place to assess annual short-term performance. Please refer to “Report on Evaluation Results of Management Performance for the 41th Fiscal Year” for results of the Representative Director’s short-term performance for FY2022.

Long-term Performance

Long-term performance incentives are provided to reward management’s contribution to long-term financial and operational competitiveness. Incentive are offered in accordance with TSR (Total Shareholder Return), Group EBITDA and Group Revenue; each factor has a weight of 20%, 40% and 40% respectively. TSR is computed by the relative performance of the Company’s TSR against the TSR of KOSPI and other domestic telecommunication service providers. The following illustrates the formulas for TSR, Group EBITDA and Group Revenue:

 

   

TSR : Share Price Return + Shareholders Return (Dividend and Share Retirement)

 

   

TSR Result : 100% + {KT’s TSR – (Domestic Telco’s TSR x 80% + KOSPI TSR x 20%)}

 

   

Group EBITDA : Operating profit + Depreciation & Amortization

 

   

Group Revenue : Consolidated revenue

 

12


Table of Contents
 

Compensation for Outside Directors

Until February 2010, the Company had no incentive based compensation program for outside directors. Instead, fixed amounts of compensation were paid to outside directors as allowances to execute their respective duties. However, the BoD introduced a new compensation program for outside directors in March 2010. The program consists of cash and stock grant in which stock grant requires a one year of lock-up period. The total remuneration for outside directors for FY2022 was recorded at KRW million. The stock grant will be offered in FY2023

 

 

Summary of Total Compensation

1) Compensation Paid to Directors

(KRW millions)

Year

   Inside Directors      Outside Directors      Total  
   Total      Average      Total      Average  

2020

     6,680        2,227        764        96        7,444  

2021

     4,979        1,660        827        103        5,806  

2021 excl. severance pay

     3,439        1,146        827        103        4,266  

2022

     2,994        1,497        786        98        3,780  

 

*

The amount above represents actual cash payments executed each FY.

 

*

The amount includes severance pay for former-inside directors following the Severance Pay Regulations for Executives.

 

*

FY2021 severance pay for former-inside director Mr. Yoon-Young Park (13.32 years of service) was KRW 1,540 million

 

*

From FY2020 to FY2021, the compensation was paid to three inside directors and eight outside directors; In FY2022, the compensation was paid to two inside directors and eight outside directors.

2) Comparison between total compensation paid and ceiling amounts on remuneration approved at the Annual General Meeting of Shareholders.

(KRW millions)

Year

   Total
Compensation(A)
     Ceiling Amount on
Remuneration(B)*
     Payment
Ratio(A/B)
 

2020

     7,444        5,800        128.3

2021

     5,806        5,800        100.1

2021 excl. severance pay

     4,266        5,800        73.6

2022

     3,780        5,800        65.2

 

*

Maximum amounts of remuneration allowed per accrual basis

 

13


Table of Contents

Ceiling amount on remuneration for Directors for the year 2023 is proposed at the BoD meeting on March 8, 2023. Following the board’s resolution, proposed cap will be voted at the upcoming AGM. For further details, please refer to the Agenda No.6 – Approval of Ceiling Amount on Remuneration for Directors.

 

 

Share Ownership of Directors

Inside directors can make personal decisions to purchase KT shares from the market. In addition, inside directors are also rewarded with stock grants as long-term performance incentives based on the TSR, Group EBITDA and Group Revenue formulas described above. Such grants are subject to a lock-up period of three years.

The following table represents current inside directors’ ownership of KT shares as of December 31, 2022.

 

Full Name

   Number of Shares  

Hyeon-Mo Ku

     36,571  

Kyung-Lim Yun

     1,100  

Outside directors are also rewarded with stock grant with a lock-up period of one year. The following table represents current outside directors’ ownership of KT shares as of December 31, 2022.

 

Full Name

   Number of Shares  

Dae-You Kim

     1,979  

Gang-Cheol Lee

     1,892  

Hee-Yol Yu

     1,421  

Chung-Gu Kang

     949  

Eun-Jung Yeo

     949  

Hyun-Myung Pyo

     11,633  

Yong-Hun Kim

     —    

Benjamin Hong

     —    

 

*

Mr. Gang-Cheol Lee resigned from the outside director as of 12 January 2023.

 

*

Mr. Benjamin Hong resigned from the outside director as of 6 March 2023.

 

14


Table of Contents

 

General Information for Voting

 

 

Number and Classification of Voting Shares

The record date to exercise voting rights at the AGM is December 31, 2022. As of the record date, the total number of KT shares issued was 261,111,808. The number of common shares, excluding treasury shares, entitled to exercise voting rights was 256,042,678 shares.

 

 

Method of Resolution

Pursuant to the provisions of the Commercial Act, Agenda No. 1, 2, 4, 5, 6, 7, and 8 shall be passed by a majority of the votes cast by the shareholders present at the meeting and at least one-fourth of the total shares that are entitled to vote. However, in which voting rights can be exercised electronically, Agenda No. 5 shall be passed with the approval of a majority vote of the shareholders present at the meeting is obtained. Agenda No. 3 shall be passed by at least two-thirds of the votes cast by the shareholders present at the meeting and at least one-third of total shares entitled to vote.

 

 

Limit on Exercising Voting Rights for Election of the Members of the Audit Committee

The Article 409 of the Commercial Act stipulates that any shareholder who holds more than 3% of the total issued shares with voting rights may not exercise his or her vote in respect of such excess shares beyond the “3% limit” when exercising voting rights with respect to election of Member of the Audit Committee(Agenda No. 5). Please note that the shareholders who own more than 3% of KT’s voting shares, equivalent to 7,681,280 shares, are not entitled to exercise any voting rights exceeding the “3% limit”.

 

15


Table of Contents

 

Report on Transaction with Major Stakeholders

Pursuant to Article 542-9 of the Commercial Code (Transaction with the stakeholders, including major shareholders, etc.), such transaction for the period shall be reported at the Meeting as described below.

Background Information

The following transaction involves an outsourcing contract with an affiliated subsidiary specialized in the IT field.

Summary of Transaction

 

1.

Purpose:

 

   

To secure provision of high-quality IT related services from KT ds

 

   

To achieve cost efficiency by leveraging core competency of KT ds

 

2.

Counterparty: KT ds

 

3.

Contract Amount

 

   

Fixed(Flat) Amount : KRW 6,576 billion

 

   

Variable Amount : KRW 1,773 billion (ITO increase expected by the establishment of new technology fields and the development of new services)

 

4.

Contract Period

 

   

January 2023 ~ December 2025 (3 Years)

 

16


Table of Contents

Matters Requiring Resolution

 

 

 

 

17


Table of Contents

 

Agenda No. 1

Election of Representative Director

<Not applicable>

 

18


Table of Contents

 

Agenda No. 2

Approval of Financial Statements for the 41st Fiscal Year

Pursuant to Article 449 of the Commercial Act (Approval and Public Notice of Financial Statements), approval of the financial statements for the 41th fiscal year is hereby requested.

Background Information

Subsequent pages include only financial statements for both consolidated and separate bases. The financial statements have been audited by an independent auditor. On March 8, 2023, a full copy of the Independent Auditor’s Report, including opinion pages and a report on ICOFR*, was uploaded to KT’s website(https://corp.kt.com/eng/html/investors/financial/audit_01.html , IR Audit Report), and will be filed with SEC as a Form 6-K on March 9, 2023. Financial notes is also included in the Independent Auditor’s Report and should be read in conjunction with financial statements.

* ICOFR : Internal Controls over Financial Reporting

 

19


Table of Contents

KT Corporation and Subsidiaries

Consolidated Statements of Financial Position

Years Ended December 31, 2022 and 2021

 

 

(in millions of Korean won)    Notes      December 31, 2022      December 31, 2021  

Assets

        

Current assets

        

Cash and cash equivalents

     4,5,38      W 2,449,062      W 3,019,592  

Trade and other receivables, net

     4,6,38        6,098,072        5,087,490  

Other financial assets

     4,7,38        1,322,452        1,185,659  

Current income tax assets

        1,543        5,954  

Inventories, net

     8        709,191        514,145  

Current assets held-for-sale

     10        —          1,187  

Other current assets

     9        2,101,212        2,044,323  
     

 

 

    

 

 

 

Total current assets

        12,681,532        11,858,350  
     

 

 

    

 

 

 

Non-current assets

        

Trade and other receivables, net

     4,6,38        1,491,046        1,091,326  

Other financial assets

     4,7,38        2,501,484        822,379  

Property and equipment, net

     11        14,772,179        14,464,886  

Right-of-use assets

     21        1,280,334        1,248,308  

Investment properties, net

     12,38        1,933,358        1,720,654  

Intangible assets, net

     13        3,129,833        3,447,333  

Investments in associates and joint ventures

     14        1,480,722        1,288,429  

Deferred income tax assets

     30        578,443        423,728  

Net defined benefit assets

     18        311,142        17,585  

Other non-current assets

     9        820,608        776,363  
     

 

 

    

 

 

 

Total non-current assets

        28,299,149        25,300,991  
     

 

 

    

 

 

 

Total assets

      W 40,980,681      W 37,159,341  
     

 

 

    

 

 

 

 

20


Table of Contents

KT Corporation and Subsidiaries

Consolidated Statements of Financial Position

Years Ended December 31, 2022 and 2021

 

 

(in millions of Korean won)    Notes      December 31, 2022     December 31, 2021  

Liabilities

       

Current liabilities

       

Trade and other payables

     4,15,38      W 7,333,165     W 6,641,422  

Borrowings

     4,16,38        1,827,042       1,731,422  

Other financial liabilities

     4,7,38        8,791       72,807  

Current income tax liabilities

        232,382       266,430  

Other provisions

     17        109,133       171,316  

Deferred income

     26        55,737       64,742  

Other current liabilities

     9        1,133,018       1,124,293  
     

 

 

   

 

 

 

Total current liabilities

        10,699,268       10,072,432  
     

 

 

   

 

 

 

Non-current liabilities

       

Trade and other payables

     4,15,38        1,064,099       1,338,781  

Borrowings

     4,16,38        8,179,643       6,706,281  

Other financial liabilities

     4,7,38        412,650       424,859  

Net defined benefit liabilities

     18        51,654       197,883  

Other provisions

     17        91,233       86,081  

Deferred income

     26        165,186       194,309  

Deferred income tax liabilities

     30        967,650       643,958  

Other non-current liabilities

     9        934,575       927,596  
     

 

 

   

 

 

 

Total non-current liabilities

        11,866,690       10,519,748  
     

 

 

   

 

 

 

Total liabilities

        22,565,958       20,592,180  
     

 

 

   

 

 

 

Equity attribute to owners of the Controlling Company

       

Share capital

     22        1,564,499       1,564,499  

Share premium

        1,440,258       1,440,258  

Retained earnings

     23        14,257,343       13,287,390  

Accumulated other comprehensive income

     24        (77,776     117,469  

Other components of equity

     24        (572,152     (1,433,080
     

 

 

   

 

 

 
        16,612,172       14,976,536  

Non-controlling interest

        1,802,551       1,590,625  
     

 

 

   

 

 

 

Total equity

        18,414,723       16,567,161  
     

 

 

   

 

 

 

Total liabilities and equity

      W 40,980,681     W 37,159,341  
     

 

 

   

 

 

 

The above consolidated statements of financial position should be read in conjunction with the accompanying notes.

 

21


Table of Contents

KT Corporation and Subsidiaries

Consolidated Statements of Profit or Loss

Years Ended December 31, 2022 and 2021

 

 

(in millions of Korean won, except per share amounts)    Notes      2022     2021  

Operating revenue

     26      W 25,650,011     W 24,898,005  

Operating expenses

     27        23,959,923       23,226,181  
     

 

 

   

 

 

 

Operating profit

        1,690,088       1,671,824  

Other income

     28        595,351       307,654  

Other expenses

     28        314,607       280,081  

Finance income

     29        690,428       726,283  

Finance costs

     29        749,908       563,330  

Share of net losses of associates and joint ventures

     14        (17,285     116,061  
     

 

 

   

 

 

 

Profit before income tax expense

        1,894,067       1,978,411  

Income tax expense

     30        506,404       519,016  
     

 

 

   

 

 

 

Profit for the year

      W 1,387,663     W 1,459,395  
     

 

 

   

 

 

 

Profit for the year attributable to:

       

Owners of the Controlling Company:

      W 1,262,498     W 1,356,878  

Non-controlling interest:

        125,165       102,517  

Earnings per share attributable to the equity holders of the Controlling Company during the year (in Korean won):

     31       

Basic earnings per share

      W 5,209     W 5,759  

Diluted earnings per share

        5,205       5,747  

The above consolidated statements of profit or loss should be read in conjunction with the accompanying notes.

 

22


Table of Contents

KT Corporation and Subsidiaries

Consolidated Statements of Comprehensive Income

Years Ended December 31, 2022 and 2021

 

 

(in millions of Korean won)    Notes      2022     2021  

Profit for the year

      W 1,387,663     W 1,459,395  
     

 

 

   

 

 

 

Other comprehensive income

       

Items that will not be reclassified to profit or loss:

       

Remeasurements of net defined benefit liabilities

     18        181,429       55,822  

Share of remeasurement loss of associates and joint ventures

        (332     (1,596

Gain (loss) on valuation of equity instruments

        (141,944     144,890  

at fair value through other comprehensive income

       

Items that may be subsequently reclassified to profit or loss:

       

Loss on valuation of debt instruments at fair value through other comprehensive income

        (16,630     (15,110

Valuation gain on cash flow hedge

        64,091       141,855  

Other comprehensive loss from cash flow hedges reclassified to profit or loss

        (95,421     (136,583

Share of other comprehensive loss from associates and joint ventures

        (10,851     (24,216

Exchange differences on translation of foreign operations

        17,464       505  
     

 

 

   

 

 

 

Total comprehensive income for the year

      W 1,385,469     W 1,624,962  
     

 

 

   

 

 

 

Total comprehensive income for the year attributable to:

       

Owners of the Controlling Company

      W 1,236,679     W 1,510,373  

Non-controlling interest

        148,790       114,589  

The above consolidated statements of comprehensive income should be read in conjunction with the accompanying notes.

 

23


Table of Contents

KT Corporation and Subsidiaries

Consolidated Statements of Changes in Equity

Years Ended December 31, 2022 and 2021

 

 

          Attributable to owners of the Controlling Company              
(in millions of Korean won)   Notes     Share
capital
    Share
premium
    Retained
earnings
    Accumulated
other
comprehensive
income
    Other
components
of equity
    Total     Non-controlling
interest
    Total equity  

Balance as at January 1, 2021

    W 1,564,499     W 1,440,258     W 12,155,420     W 86,051     W (1,234,784   W 14,011,444     W 1,539,989     W 15,551,433  

Comprehensive income

                 

Profit for the year

      —         —         1,356,878       —         —         1,356,878       102,517       1,459,395  

Remeasurements of net defined benefit liabilities

    18       —         —         47,348       —         —         47,348       8,474       55,822  

Share of gain on remeasurements of associates
and joint ventures

      —         —         (1,559     —         —         (1,559     (37     (1,596

Share of other comprehensive loss of associates
and joint ventures

      —         —         —         (19,718     —         (19,718     (4,498     (24,216

Valuation gain on cash flow hedge

    4,7       —         —         —         5,222       —         5,222       50       5,272  

Gain on valuation of financial instruments at fair value
through other comprehensive income

    4,7       —         —         76,288       47,247       —         123,535       6,245       129,780  

Exchange differences on translation of foreign operations

      —         —         —         (1,333     —         (1,333     1,838       505  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total comprehensive income for the year

      —         —         1,478,955       31,418       —         1,510,373       114,589       1,624,962  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Transactions with owners

                 

Dividends paid by the Controlling Company

      —         —         (326,487     —         —         (326,487     —         (326,487

Dividends paid to non-controlling interest of subsidiaries

      —         —         —         —         —         —         (23,762     (23,762

Effect of change in connection range

      —         —         —         —         —         —         (17,566     (17,566

Change in ownership interest in subsidiaries

      —         —         —         —         15,797       15,797       (22,620     (6,823

Appropriations of loss on disposal of treasury stock

      —         —         (20,498     —         20,498       —         —         —    

Acquisition of treasury stock

      —         —         —         —         (190,105     (190,105     —         (190,105

Disposal of treasury stock

      —         —         —         —         50,954       50,954       —         50,954  

Recognition of the obligation to purchase its own equity

      —         —         —         —         (101,829     (101,829     —         (101,829

Others

      —         —         —         —         6,389       6,389       (5     6,384  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Subtotal

      —         —         (346,985     —         (198,296     (545,281     (63,953     (609,234
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Balance as at December 31, 2021

    W 1,564,499     W 1,440,258     W 13,287,390     W 117,469     W (1,433,080   W 14,976,536     W 1,590,625     W 16,567,161  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

24


Table of Contents

KT Corporation and Subsidiaries

Consolidated Statements of Changes in Equity

Years Ended December 31, 2022 and 2021

 

 

          Attributable to owners of the Controlling Company              
(in millions of Korean won)   Notes     Share
capital
    Share
premium
    Retained
earnings
    Accumulated
other
comprehensive
income
    Other
components
of equity
    Total     Non-controlling
interest
    Total equity  

Balance as at January 1, 2022

    W 1,564,499     W 1,440,258     W 13,287,390     W 117,469     W (1,433,080   W 14,976,536     W 1,590,625     W 16,567,161  

Comprehensive income

                 

Profit for the year

      —         —         1,262,498       —         —         1,262,498       125,165       1,387,663  

Remeasurements of net defined benefit liabilities

    18       —         —         165,524       —         —         165,524       15,905       181,429  

Share of gain on remeasurements of associates
and joint ventures

      —         —         (189     —         —         (189     (143     (332

Share of other comprehensive loss of associates
and joint ventures

      —         —         —         (8,291     —         (8,291     (2,560     (10,851

Valuation loss on cash flow hedge

    4,7       —         —         —         (32,140     —         (32,140     810       (31,330

Loss on valuation of financial instruments at fair value
through other comprehensive income

    4,7       —         —         4,091       (160,785     —         (156,694     (1,880     (158,574

Exchange differences on translation of foreign operations

      —         —         —         5,971       —         5,971       11,493       17,464  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total comprehensive income for the year

      —         —         1,431,924       (195,245     —         1,236,679       148,790       1,385,469  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Transactions with owners

                 

Dividends paid by the Controlling Company

      —         —         (450,394     —         —         (450,394     —         (450,394

Dividends paid to non-controlling interest of subsidiaries

      —         —         —         —         —         —         (26,407     (26,407

Effect of change in connection range

      —         —         —         —         —         —         3,152       3,152  

Change in ownership interest in subsidiaries

      —         —         —         —         88,924       88,924       32,695       121,619  

Appropriations of loss on disposal of treasury stock

      —         —         (11,577     —         11,577       —         —         —    

Acquisition of treasury stock

      —         —         —         —         763,081       763,081       —         763,081  

Conversion of redeemable convertible preferred shares of subsidiaries to common shares

      —         —         —         —         —         —         51,476       51,476  

Others

      —         —         —         —         (2,654     (2,654     2,220       (434
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Subtotal

      —         —         (461,971     —         860,928       398,957       63,136       462,093  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Balance as at December 31, 2022

    W 1,564,499     W 1,440,258     W 14,257,343     W (77,776   W (572,152   W 16,612,172     W 1,802,551     W 18,414,723  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

The above consolidated statements of changes in equity should be read in conjunction with the accompanying notes.

 

25


Table of Contents

KT Corporation and Subsidiaries

Consolidated Statements of Cash Flows

Years Ended December 31, 2022 and 2021

 

 

(in millions of Korean won)    Notes      2022     2021  

Cash flows from operating activities

       

Cash generated from operations

     33      W 3,835,879     W 5,829,607  

Interest paid

        (263,520     (257,809

Interest received

        307,091       272,061  

Dividends received

        68,827       74,441  

Income tax paid

        (351,212     (356,466
     

 

 

   

 

 

 

Net cash inflow from operating activities

        3,597,065       5,561,834  
     

 

 

   

 

 

 

Cash flows from investing activities

       

Collection of loans

        44,287       54,934  

Disposal of financial assets at fair value through profit or loss

        1,298,621       609,849  

Disposal of financial assets at amortized cost

        1,046,115       690,457  

Disposal of financial assets at fair value through other comprehensive income

        97,932       244,994  

Disposal of investments in associates and joint ventures

        34,828       10,880  

Disposal of assets held-for-sale

        4,600       —    

Disposal of property and equipment and investment properties

        178,063       174,413  

Disposal of intangible assets

        20,088       11,624  

Disposal of right-of-use assets

        97       318  

Increase in cash due to changes in scope of consolidation and others

        6,754       39,340  

Loans granted

        (43,694     (54,128

Acquisition of financial assets at fair value through profit or loss

        (1,317,175     (753,907

Acquisition of financial assets at amortized cost

        (1,450,442     (623,924

Acquisition of financial assets at fair value through other comprehensive income

        (449,504     (131,674

Acquisition of investments in associates and joint ventures

        (280,988     (487,828

Acquisition of property and equipment and investment properties

        (3,439,857     (3,495,021

Acquisition of intangible assets

        (545,190     (752,181

Acquisition of right-of-use assets

        (2,090     (4,261

Decrease in cash due to changes in scope of consolidation and others

        (41,088     (671,359
     

 

 

   

 

 

 

Net cash outflow from investing activities

        (4,838,643     (5,137,474
     

 

 

   

 

 

 

 

 

26


Table of Contents

December 31, 2022 and 2021

Separate Statements of Financial Position

December 31, 2022 and 2021

 

 

(in millions of Korean won)    Notes      December 31, 2022     December 31, 2021  

Assets

       

Current assets

       

Cash and cash equivalents

     4,5,36      W 966,307     W 1,708,714  

Trade and other receivables, net

     4,6,36        3,055,649       3,092,397  

Other financial assets

     4,7,36        232,837       104,062  

Inventories, net

     8        349,870       289,345  

Other current assets

     9        1,998,825       1,972,529  
     

 

 

   

 

 

 

Total current assets

        6,603,488       7,167,047  
     

 

 

   

 

 

 

Non-current assets

       

Trade and other receivables, net

     4,6,36        526,988       750,820  

Other financial assets

     4,7,36        1,993,893       591,201  

Property and equipment, net

     10        11,540,162        12,021,117   

Right-of-use assets

     20        983,049       1,078,129  

Investment properties, net

     11,36        1,137,489       997,344  

Intangible assets, net

     12        1,855,679       2,236,564  

Investments in subsidiaries, associates and joint ventures

     13        4,879,219       3,816,915  

Net defined benefit assets

     17        180,689       —    

Other non-current assets

     9        717,118       703,232  
     

 

 

   

 

 

 

Total non-current assets

        23,814,286       22,195,322  
     

 

 

   

 

 

 

Total assets

      W 30,417,774     W 29,362,369  
     

 

 

   

 

 

 

 

27


Table of Contents

KT Corporation

Separate Statements of Financial Position

December 31, 2022 and 2021

 

 

(in millions of Korean won)           December 31, 2022     December 31, 2021  

Liabilities

       

Current liabilities

       

Trade and other payables

     4,14,36      W 4,411,056     W 4,523,621  

Borrowings

     4,15,36        984,720       1,338,207  

Other financial liabilities

     4,7,36        —         17,807  

Current income tax liabilities

     29        127,944       104,481  

Provisions

     16        87,720       155,660  

Deferred income

     25        44,042       48,977  

Other current liabilities

     9        665,968       779,967  
     

 

 

   

 

 

 

Total current liabilities

        6,321,450         6,968,720  
     

 

 

   

 

 

 

Non-current liabilities

       

Trade and other payables

     4,14,36        979,050       1,259,709  

Borrowings

     4,15,36        6,510,841       5,611,447  

Other financial liabilities

     4,7,36        37,566       5,572  

Net defined benefit liabilities

     17        —         116,456  

Provisions

     16        79,374       77,284  

Deferred income

     25        158,161       187,309  

Deferred income tax liabilities

     29        763,113       487,107  

Other non-current liabilities

     9        710,139       783,871  
     

 

 

   

 

 

 

Total non-current liabilities

        9,238,244       8,528,755  
     

 

 

   

 

 

 

Total liabilities

        15,559,694       15,497,475  
     

 

 

   

 

 

 

Equity

       

Share capital

     21        1,564,499       1,564,499  

Share premium

        1,440,258       1,440,258  

Retained earnings

     22        12,347,403       11,931,481  

Accumulated other comprehensive income

     23        (72,672     125,610  

Other components of equity

     23        (421,408     (1,196,954
     

 

 

   

 

 

 

Total equity

        14,858,080       13,864,894  
     

 

 

   

 

 

 

Total liabilities and equity

      W 30,417,774     W 29,362,369  
     

 

 

   

 

 

 

The above separate statements of financial position should be read in conjunction with the accompanying notes.

 

28


Table of Contents

KT Corporation

Separate Statements of Profit or Loss

Years Ended December 31, 2022 and 2021

 

 

(in millions of Korean won, except per share amounts)    Notes    2022      2021  

Operating revenue

   25    W 18,289,243      W 18,387,434  

Operating expenses

   26      17,121,140        17,319,161  
     

 

 

    

 

 

 

Operating profit

        1,168,103        1,068,273  

Other income

   27      408,025        346,907  

Other expenses

   27      228,723        244,261  

Finance income

   28      577,334        638,931  

Finance costs

   28      653,996        488,533  
     

 

 

    

 

 

 

Profit before income tax

        1,270,743        1,321,317  

Income tax expense

   29      506,993        330,826  
     

 

 

    

 

 

 

Profit for the year

      W 763,750      W 990,491  
     

 

 

    

 

 

 

Earnings per share

        

Basic earnings per share

   30    W 3,153      W 4,211  

Diluted earnings per share

   30      3,152        4,203  

The above separate statements of profit or loss should be read in conjunction with the accompanying notes.

 

29


Table of Contents

KT Corporation

Separate Statements of Comprehensive Income

Years Ended December 31, 2022 and 2021

 

 

(in millions of Korean won)    Notes      2022     2021  

Profit for the year

      W 763,750     W 990,491  
     

 

 

   

 

 

 

Other comprehensive income (loss)

       

Items that will not be reclassified to profit or loss:

       

Remeasurements of net defined benefit liabilities

     17        114,154       31,025  

Gain (loss) on valuation of equity instruments at fair value through other comprehensive income

        (149,638     116,913  

Items that may be subsequently reclassified to profit or loss:

       

Loss on valuation of debt instruments at fair value through other comprehensive income

     4        (13,902     (15,110

Valuation gain on cash flow hedges

     4,7        56,259       137,865  

Other comprehensive loss from cash flow hedges reclassified to profit or loss

     4        (91,012     (133,728
     

 

 

   

 

 

 

Total other comprehensive income (loss)

      W (84,139   W 136,965  
     

 

 

   

 

 

 

Total comprehensive income for the year

      W 679,611     W 1,127,456  
     

 

 

   

 

 

 

The above separate statements of comprehensive income should be read in conjunction with the accompanying notes.

 

30


Table of Contents

KT Corporation

Separate Statements of Changes in Equity

Years Ended December 31, 2022 and 2021

 

 

(in millions of Korean won)   Notes     Share capital     Share
premium
    Retained
earnings
    Accumulated
other
comprehensive
income
    Other
components of
equity
    Total  

Balance at January 1, 2021

    W 1,564,499     W 1,440,258     W 11,233,714     W 42,906     W (1,077,820   W 13,203,557  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Comprehensive income

             

Profit for the year

      —         —         990,491       —         —         990,491  

Gain on valuation of financial assets at fair value through other comprehensive income

    4,29       —         —         23,236       78,567       —         101,803  

Remeasurements of net defined benefit liabilities

    17,29       —         —         31,025       —         —         31,025  

Valuation gain on cash flow hedge

    4,29       —         —         —         4,137       —         4,137  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total comprehensive income for the year

      —         —         1,044,752       82,704       —         1,127,456  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Transactions with equity holders

             

Dividends paid

    31       —         —         (326,487     —         —         (326,487

Appropriation of retained earnings related to loss on disposal of treasury stock

    22       —         —         (20,498     —         20,498       —    

Acquisition of treasury stock

    23       —         —         —         —         (190,105     (190,105

Disposal of treasury stock

    23       —         —         —         —         50,954       50,954  

Others

      —         —         —         —         (481     (481
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Balance at December 31, 2021

    W 1,564,499     W 1,440,258     W 11,931,481     W 125,610     W (1,196,954   W 13,864,894  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Balance at January 1, 2022

    W 1,564,499     W 1,440,258     W 11,931,481     W 125,610     W (1,196,954   W 13,864,894  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Comprehensive income

             

Profit for the year

      —         —         763,750       —         —         763,750  

Loss on valuation of financial assets at fair value through other comprehensive income

    4,29       —         —         (11     (163,529     —         (163,540

Remeasurements of net defined benefit liabilities

    17,29       —         —         114,154       —         —         114,154  

Valuation loss on cash flow hedge

    4,29       —         —         —         (34,753     —         (34,753
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total comprehensive income for the year

      —         —         877,893       (198,282     —         679,611  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Transactions with equity holders

             

Dividends paid

    31       —         —         (450,394     —         —         (450,394

Appropriation of retained earnings related to loss on disposal of treasury stock

    22       —         —         (11,577     —         11,577       —    

Disposal of treasury stock

    23       —         —         —         —         763,081       763,081  

Others

      —         —         —         —         888       888  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Balance at December 31, 2022

    W 1,564,499     W 1,440,258     W 12,347,403     W (72,672   W (421,408   W 14,858,080  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

31


Table of Contents

KT Corporation

Separate Statements of Cash Flows

Years Ended December 31, 2022 and 2021

 

 

(in millions of Korean won)    Notes      2022     2021  

Cash flows from operating activities

       

Cash generated from operations

     32      W 4,128,185     W 4,998,368  

Interest paid

        (202,579     (228,368

Interest received

        211,170       230,509  

Dividends received

        98,874       76,629  

Income tax paid

        (173,297     (117,810
     

 

 

   

 

 

 

Net cash inflow from operating activities

        4,062,353       4,959,328  
     

 

 

   

 

 

 

Cash flows from investing activities

       

Collection of loans

        133,864       47,254  

Disposal of current financial instruments at amortized cost

        900       189,976  

Disposal of financial assets at fair value through profit or loss

        1,695       33,651  

Disposal of financial assets at fair value through other comprehensive income

        —         36,749  

Disposal of investments in subsidiaries, associates and joint ventures

        36,028       70,785  

Disposal of property and equipment

        60,619       40,722  

Disposal of intangible assets

        17,047       6,036  

Disposal of right-of-use assets

        96       110  

Loans granted

        (125,146     (42,815

Acquisition of current financial instruments at amortized cost

        (117,764     —    

Acquisition of non-current financial instruments at amortized cost

        (226,030     —    

Acquisition of financial assets at fair value through profit or loss

        (115,415     (71,899

Acquisition of financial assets at fair value through other comprehensive income

        (442,176     (40,182

Acquisition of investments in subsidiaries, associates and joint ventures

        (348,607     (383,221

Acquisition of property and equipment

        (2,980,008     (2,946,975

Acquisition of intangible assets

        (307,689     (633,847

Acquisition of right-of-use assets

        (1,984     (3,330
     

 

 

   

 

 

 

Net cash outflow from in investing activities

        (4,414,570     (3,696,986
     

 

 

   

 

 

 

Cash flows from financing activities

       

Proceeds from borrowings and bonds

        1,741,962       1,038,456  

Settlement of derivative instruments (inflow)

        76,280       216  

Dividend paid

        (450,394     (326,487

Repayments of borrowings and debentures

        (1,359,117     (1,223,841

Settlement of derivative instruments (outflow)

        (41,197     —    

Acquisition of treasury stock

        —         (190,105

Decrease in lease liabilities

        (357,337     (393,634
     

 

 

   

 

 

 

Net cash outflow from financing activities

     33        (389,803     (1,095,395
     

 

 

   

 

 

 

Effect of exchange rate change on cash and cash equivalents

        (387     557  
     

 

 

   

 

 

 

Net increase (decrease) in cash and cash equivalents

        (742,407     167,504  

Cash and cash equivalents

       

Beginning of the year

     5        1,708,714       1,541,210  
     

 

 

   

 

 

 

End of the year

     5      W 966,307     W 1,708,714  
     

 

 

   

 

 

 

 

32


Table of Contents

 

Agenda No. 3

Amendment to the Articles of Incorporation

In order to expand subscriber base and to strengthen communication with shareholders regarding treasury stocks matter, approval of the following changes to the Articles of Incorporation is requested. .

Background Information

Proposed changes to the Articles of Incorporation have been drafted following a resolution by the Board of Directors. The amendment includes –

 

  1)

Adding items in Business Purposes in the Article of Incorporation in order to expand subscriber base of DIGICO B2C to initiate rental service

 

  2)

Strengthening communication with Shareholders regarding treasury stock matters

Background information is drafted to improve shareholder’s understanding. For more accurate excerpts, please refer to the subsequent pages. If any potential conflicts exist, the following information shall prevail.

 

33


Table of Contents

<Agenda No. 3-1, Amendment to add items in Business Purposes>

 

Before Amendment

 

After Amendment

 

Purpose

Article 2. (Purpose) The objective of KT is to engage in the following business activities:

 

35. Any and all other activities or businesses incidental to or necessary for attainment of the foregoing.

 

Article 2. (Purpose) The objective of KT is to engage in the following business activities:

 

35. Facility rental business

 

36. Any and all other activities or businesses incidental to or necessary for attainment of the foregoing.

 

Added a business purpose to promote

rental business to expand DIGICO

B2C customer base

 

34


Table of Contents

<Agenda No. 3-2, Duty to report purpose of holding treasury stocks and plans for cancellation and disposal >

 

Before Amendment

 

After Amendment

 

Purpose

<New>  

Article 48-2 (Treasury Stock Report)

 

KT shall report the purpose, plans for retirement and disposal of the treasury stock held at the annual general shareholder’s meetings.

  Strengthening communication with Shareholders regarding treasury stock matters

 

35


Table of Contents

<Agenda No. 3-3, Shareholders approval required in case of acquisition of stock of other companies for cross shareholding through treasury stocks>

 

Before Amendment

 

After Amendment

 

Purpose

<New>  

Article 48-3 (Acquisition of Stock of Other Companies for Cross Shareholding)

 

When KT acquires the stocks of other companies for cross shareholding by way of selling or exchanging treasury stocks, it shall be approved by the General Meeting of Shareholders.

  Strengthening communication with Shareholders regarding treasury stock matters

 

36


Table of Contents

LOGO Addendum

 

Before Amendment

 

After Amendment

 

Purpose

 

ADDENDUM (March 31, 2023)

 

Article 1. (Enforcement Date)

 

These Articles of Incorporation shall become effective from the date on which a resolution on the foregoing amendments is adopted at the General Meeting of Shareholders.

  Amended to add effective date of amended Articles of Incorporation as of date of the resolution at the Annual General Meeting of Shareholders

 

37


Table of Contents

 

Agenda No. 4

Election of Directors

Pursuant to Article 382(Appointment of Directors, Relationship with Company and Outside Directors) and Article 542-8(Appointment of Outside Directors) of the Commercial Act, Article 25(Election of the Representative Director and Directors) and Article 42(Outside Director Candidates Recommendation Committee) of the Articles of Incorporation, approval of the election of directors is hereby requested.

At the 41th Annual General Meeting of Shareholders, a total of 3 directors shall be elected – three outside directors. The Outside Director Nominating Committee has nominated three outside director candidates.

[Board Composition and Election Process]

Our board of directors has the ultimate responsibility for the administration of our affairs. Our articles of incorporation provide for a board of directors consisting of:

 

   

up to three inside directors, including the Representative Director; and

 

   

up to eight outside directors.

All of our directors are elected at the general shareholders’ meeting. Under our articles of incorporation, the term of office for an inside director is up to three years. Pursuant to an amendment to our articles of incorporation in March 2020, the term of office for an outside director changed from up to ten years to up to six years, which change was made to reflect an amendment to the enforcement decree of the Commercial Code of Korea.

According to our articles of incorporation, Outside Director Nominating Committee must consist of one inside director and all of our outside directors, other than for election of an outside director resulting from the expiration of the term of the office, in which case such outside director whose term is expiring may not be a member of the committee. Our Outside Director Candidate Nominating Committee nominates outside director candidates for appointment at the general shareholders’ meeting.

Representative Director recommends Inside Director candidates with the consent of the Board of Directors and candidates are elected at the general shareholders’ meeting. And in accordance with the company’s Articles of Incorporation, one person recommended by the CEO among the inside directors can be additionally appointed as a representative director by a resolution of the Board of Directors.

 

38


Table of Contents

Nomination and Election Process for Outside Director

 

LOGO

Biographies of candidates are disclosed in the subsequent pages.

 

39


Table of Contents

<Agenda No. 4-1, Inside Director Candidate>

<Not applicable>

 

40


Table of Contents

<Agenda No. 4-2, Inside Director Candidate>

 

<Not applicable>

 

41


Table of Contents

<Agenda No. 4-3, Outside Director Candidate>

 

Full Name: Mr. Chung-Gu Kang

Current Occupation: Professor, College of Engineering, Korea University

 

Date of Birth

 

  

December 12, 1962

 

Recommended by

 

  

Outside Director Nominating Committee

 

Relation to the Largest Shareholder

 

  

None

 

Transactions with the Company (recent three years)

 

  

None

 

Taxes in Arrears / Management of any Insolvent Companies / Statutory Reasons for Disqualification (recent five years)

 

   None

Other Board Service

 

  

None

 

Service Term

 

  

March 31, 2023 to the 2024 AGM (one-year term)

 

 Educational Background

 

• 1993    Ph.D. in Electrical and Computer Engineering, University of California at Irvine
• 1989    Master’s in Electrical and Computer Engineering, University of California at Irvine
• 1987    Bachelor’s in Electrical Engineering, University of California at San Diego

 

 Professional Associations

 

• 1994 – Present    Full Professor, School of Electrical Engineering, Korea University
• 2020 – Present    Chair, Executive Committee, SatCom Forum
• 2020 – Present    Member, The National Academy of Engineering of Korea
• 2019 – 2020    Chair, Consultative Committee for Radio Policy, Ministry of Science and ICT
• 2018 – Present    Honorary President at Korea Institute of Communication and Information Sciences
• 2015 – 2018    Chair at Technology Development & Standardization Subcommittee, 5G Strategic Planning Committee, Ministry of Science and ICT

 

42


Table of Contents

Rationale for Recommendation

Mr. Kang, as an expert in ICT industry, currently serves as a professor at Korea University School of Electrical Engineering, and during the past three years of working as an outsider director, he has presented the company’s development direction based on strategic decisions related to telecommunications technology and future businesses.

In 2022, as a Chairperson of the Board of Directors, including delivering various opinions from internal and external stakeholders’ of a company to the management, he made efforts to ensure a balanced board operation. In particular, as the Chair of Representative Director Candidate Examination Committee (the “RDCEC”), he contributed greatly to the selection of the best CEO candidate to lead the KT Group, operating the committee fairly and transparently.

Based on the professionalism and balanced perspectives that the candidate has demonstrated through board activities, He is recommend as an outside director since he is expected to decide company’s management goals and management policies for the benefit of the company and shareholders, and to contribute to enhancing the corporate value to the next level, supervising management activities for the transparent management.

• Candidate’s Plan as Outside Director

Mr. Kang will continue to monitor and support activities to ensure proper investment, stability in the network, and basic infrastructure so that the management can go back to basics and prevent potential risks. As an ICT expert, through preemptively establishing a 6G vision, he will support future standardization led by operators, and will also review frequency·technology strategies as well as mid-to long-term investment plans.

As a member of the board of directors, Mr. Kang will support KT’s business portfolio strengthening for its sustainable growth, and contribute to the company’s growth as a digital platform company through systematic review of performance. In particular, Mr. Kang will strive to introduce sustainable evaluation index necessary for technology accumulation and human resource management for the internalization of basic technologies. Mr. Kang will improve communication with stakeholders to strengthen the independence of the board of directors and the stability of governance structure. Moreover, Mr. Kang will support to become a company that meets market expectations and become a trusted company through continuously monitoring compliance performance at the board level.

 

43


Table of Contents

<Agenda No. 4-4, Outside Director Candidate>

 

Full Name: Mrs. Eun-Jung Yeo

Current Occupation: Professor, College of Business, Chuang-Ang University

 

Date of Birth

 

  

February 15, 1973

 

Recommended by

 

  

Outside Director Nominating Committee

 

Relation to the Largest Shareholder

 

  

None

 

Transactions with the Company (recent three years)

 

  

None

 

Taxes in Arrears / Management of any Insolvent Companies / Statutory Reasons for Disqualification (recent five years)

 

   None

Other Board Service

  

Outside Director and Audit Committee Chairperson at Krafton Inc.

 

Service Term

 

  

March 31, 2023 to the 2024 AGM (one-year term)

 

• Educational Background

 

• 2006    Ph.D. in Economics, University of Michigan
• 1998    Master’s in Chemical Engineering, Seoul National University
• 1996    Bachelor’s in Chemical Engineering, Seoul National University

 

• Professional Associations

 

• 2009 – Present    Professor at College of Business, Chung-Ang University
• 2022 – Present    Member of Advisory Committee, Korea Deposit Insurance Corporation
• 2021 – Present    Non-Executive Officer, KOMSCO(Korea Minting & Security Printing & ID Card Operating Corporation)
• 2020 – Present    Auditor, Financial Information Society of Korea
• 2019 – Present    Director in MBA Program, School of Business Administration, Chung-Ang University
• 2018 – Present    Member of Asset Management Committee for Employment Insurance / Industrial Insurance Fund, Ministry of Employment and Labor
• 2018 – Present    Risk Management Committee, Deposit Insurance Fund, Korea Deposit Insurance Corporation
• 2015 – Present    Member of Evaluation Committee for Public Funds, Ministry of Strategy and Finance

 

44


Table of Contents

Rationale for Recommendation

Mrs. Eun-Jung Yeo, a candidate for outside director, is an engineering graduate with a Ph.D. in economics. She is a financial expert, actively engaged with many different positions, serving as a professor of College of Business at Chung-Ang University, a Chair of Financial Innovation Committee at the Korea Securities Association, and a non-executive officer at the KOMSCO(Korea Minting & Security Printing & ID Card Operating Corporation)Korea Minting and Security Printing Corporation). The candidate has the financial/accounting expert qualifications required by Article 37 (Audit Committee) of the Enforcement Decree of the Commercial Act. During her tenure as an outside director at KT, she made efforts to strengthen the compliance system as the chair of the Audit Committee, thereby improving management supervision based on his financial expertise and through this, contributed to the improvement of the management supervision function based on financial expertise.

Her knowledge and experience related to financial accounting that the candidate has demonstrated through her board activities will continue to be a great help to the interests of company as well as shareholders. Through transparent management supervision, Mrs. Yeo can contribute to enhancing long-term corporate value by reconciling conflicting interests between company’s management and shareholders including supervising the adequacy and effectiveness of the internal control system.

• Candidate’s Plan as an Outside Director

KT’s corporate value and shareholder value enhancement are the top priorities, and Mrs. Yeo plans to continue to strive for the independent and effective functioning of the Board of Directors and Audit Committee. Mrs. Yeo will provide a wide range of advice on valuation and financial risk factors according to the company’s new business in the future, take a close look at internal control as well as related tasks to ensure that the agreement with the U.S. Securities and Exchange Commission is fully implemented, and will supervise the company to thoroughly implement preparations in response to the introduction of the consolidated internal accounting management system.

 

45


Table of Contents

<Agenda No. 4-5, Outside Director Candidate>

<Not applicable>

 

46


Table of Contents

<Agenda No. 4-6, Outside Director Candidate>

 

Full Name: Mr. Hyun-Myung Pyo

Current Occupation: Outside Director, Hankook Tire & Technology

 

Date of Birth

 

  

October 21, 1958

 

Recommended by

 

  

Outside Director Nominating Committee

 

Relation to the Largest Shareholder

 

  

None

 

Transactions with the Company (recent three years)

 

  

None

 

Taxes in Arrears / Management of any Insolvent Companies / Statutory Reasons for Disqualification (recent five years)

 

   None

Other Board Service

 

  

Outside Director at Hankook Tire & Technology

 

Service Term

 

  

March 31, 2023 to the 2024 AGM (one-year term)

 

• Educational Background

 

• 1998    Ph.D. in Telecommunication Engineering, Korea University
• 1983    Master’s in Telecommunication Engineering, Korea University
• 1977    Bachelor’s in Electronic Engineering, Korea University

 

• Professional Associations

 

• 2021 – Present    Outside Director at Hankook Tire & Technology
• 2019 – 2020    Outside Director at JB Financial Group Co., Ltd.
• 2015 – 2018    CEO at Lotte Rental Co., Ltd.
• 2014 – 2015    CEO at KT Rental Co., Ltd.
• 2010 – 2014    President at KT Corporation, KT

 

47


Table of Contents

• Rationale for Recommendation

Mr. Pyo is a well-respected expert both in the ICT sector with a Ph.D. in telecommunication Engineering and in corporate management with myriad experiences including his former position as CEO of Lotte Rental. As an outside director of KT for the past three years, the candidate spared no advice for the Company’s advancement based on his past experience as a successful CEO.

During his tenure as the Company’s outside director, Mr. Pyo presented the Company with the direction for sustainable management as the Chairman of the Sustainable Management Committee and contributed to the declaration of KT’s ESG management by advising the Company to prepare a differentiated ESG roadmap. Furthermore, he proposed the path for the Company’s advancement such as strengthening the competitiveness of major businesses and revamping the portfolio, and contributed to enhancing the corporate value through requesting a stronger alignment between management goals and executive evaluations for a robust growth of KT Group.

Based on the expertise shown by the Candidate through Board activities and diverse corporate experiences, Mr. Pyo is expected to contribute significantly to positioning the Company as an exemplary company in terms of governance through with practical advice on digital-based eco-friendly policies and solutions to social issues.

• Candidate’s Plan as Outside Director

Mr. Pyo plans to encourage an active Board so that the Company’s governance structure can be reach a top-tier level on a global standard. In particular, he will upgrade the CEO succession process to a global level. Mr. Pyo will strive to implement ESG management throughout the entire KT Group, to internalize the company’s compliance system, and to publicize it. In addition, he will fully support an upgrade to the communication network and IT infrastructure to a level will satisfy customers by providing advice on ways to strengthen the Group’s IT capabilities such as fostering and securing IT personnel and internalizing core technologies.

Mr. Pyo will advocate an innovation to the business portfolio to enhance long-term shareholder values and will also spare no advice on ways to strengthen the competitiveness of the Company’s Mobility business with specific action plans based on management experience in the mobility business. Furthermore, to achieve a global standard Group management scheme, Mr. Pyo will advocate upgrading the authority delegation system so that CEOs of subsidiaries can fully execute responsible management, and as a result increase the portion of subsidiaries’ revenue.

 

48


Table of Contents

Board of Directors - Activity & Tenure Status

1) Summary of the BoD Meeting Attendance

 

Outside Directors

   Percentage of
Attendance*
   The Number of
Meetings
   The Number of
Attendance
• Outside Directors      
Dae-You Kim    100%    23    23
Gang-Cheol Lee    100%    23    23
Hee-Yol Yu    100%    23    23
Hyun-Myung Pyo    100%    23    23
Chung-Gu Kang    100%    23    23
Eun-Jung Yeo    95.7%    23    22
Yong-Hun Kim    100%    16    16
Benjamin Hong    100%    16    16

 

*

Percentage of attendance is calculated over FY 2022

2) Comparison of the BoD Members

In 2023, as an outside director Benjamin Hong resigned just before the notice of the 41st AGM, there was a limit to nominate new outside director candidate.

(  ) Gender in parenthesis, LOGO Represents directors who are candidates for KT Board of Directors

 

Before AGM

  

After AGM

• Inside Directors
Hyeon-Mo Ku (M)   
Kyoung-Lim Yun (M)   
  
• Outside Directors
Dae-You Kim* (M)    Dae-You Kim* (M)
Gang-Cheol Lee (M)    Hee-Yol Yu (M)
Hee-Yol Yu (M)    Yong-Hun Kim* (M)
Eun-Jung Yeo* (F)    Chung-Gu Kang* (M)
Chung-Gu Kang* (M)    Eun-Jung Yeo* (F)
Hyun-Myung Pyo (M)    Hyun-Myung Pyo (M)
Yong-Hun Kim* (M)   
Benjamin Hong (M)   

 

*

Members of the Audit Committee

LOGO

Gang-Cheol Lee voluntarily resigned on January 12, 2023

LOGO

Benjamin Hong voluntarily resigned on March 6, 2023

LOGO

Seung-Tae Lim voluntarily resigned on March 10, 2023

LOGO

Kyoung-Lim Yun voluntarily resigned on March 27, 2023

LOGO

Pursuant to Articles of Incorporation of the company, the candidacy for Chang-Seok Seo and Kyung-Min Song is no longer available due to the invalidation of recommendation of the candidacy by Representative Director Candidate.

 

49


Table of Contents

3) Tenure Status of the BoD Members

LOGO Refers to directors who are candidates for KT Board of Directors

 

    

Name

  

Initial Appointment

  

Recent Appointment

  

End of Tenure

Outside Directors

   Dae-You Kim    March 2018    March 2021    AGM 2024
   Hee-Yol Yu    March 2019    March 2022    AGM 2025
   Yong-Hun Kim    March 2022    March 2022    AGM 2025
   Chung-Gu Kang    March 2020    March 2023*    AGM 2024*
   Eun-Jung Yeo    March 2020    March 2023*    AGM 2024*
   Hyun-Myung Pyo    March 2020    March 2023*    AGM 2024*

 

*

implies the date under the assumption of approval of election at the 41st AGM.

4) Committees of the BOD

 

    

Corporate
Governance Committee

  

Audit Committee

  

Evaluation
and
Compensation
Committee

  

Related-
Party
Transactions
Committee

  

Sustainability
Management
Committee

  

Outside Director
Candidate
Nominating
Committee

  

Management
Committee

Hyeon-Mo Ku

                     LOGO

Kyoung-Lim Yun

   LOGO             LOGO    LOGO    LOGO

Dae-Yoo Kim

      LOGO    LOGO          LOGO   

Gang-Cheol Lee

   LOGO          LOGO    LOGO    LOGO   

Hee-Yol Yu

   LOGO       LOGO    LOGO       LOGO   

Eun-Jung Yeo

      LOGO       LOGO         

Chung-Gu Kang

      LOGO       LOGO         

Hyun-Myung Pyo

   LOGO       LOGO       LOGO      

Yong-Hun Kim

      LOGO          LOGO    LOGO   

Benjamin Hong

   LOGO       LOGO       LOGO    LOGO   

LOGO chairperson

 

*

In 2023, Inside Director Kyoung-Lim Yun did not attend Outside Director Candidate Nominating Committee meetings for Outside Director candidate examination and recommendation

 

50


Table of Contents

 

Agenda No. 5

Election of Members of Audit Committee

Pursuant to the Article 542-11(Audit Committee) and Article 542-12(Composition of Audit Committee) of Commercial Code, approval of the election of the members of the Audit Committee is hereby requested.

At this Annual General Meeting of Shareholders, an outside director who will serve as Members of the Audit Committee will be elected

LOGO Limit on Exercising Voting Rights for Election of the Members of the Audit Committee

The Article 409 of the Korean Commercial Code stipulates that any shareholder who holds more than 3% of the total issued shares with voting rights may not exercise his or her vote in respect of such excess shares beyond the “3% limit” when exercising voting rights with respect to election of members of the audit committee (Agenda No. 5). Please note that the shareholders who own more than 3% of KT’s voting shares, equivalent to 7,681,280 shares, are not entitled to exercise any voting rights exceeding the “3% limit”.

 

51


Table of Contents

<Agenda No. 5-1, Election of Members of Audit Committee>

Full Name: Mr. Chung-Gu Kang

Current Occupation: Professor, College of Engineering, Korea University

 

Date of Birth

   December 12, 1962

Recommended by

   Outside Director Nominating Committee

Relation to the Largest Shareholder

   None

Transactions with the Company (recent three years)

   None

Taxes in Arrears / Management of any Insolvent Companies / Statutory Reasons for Disqualification (recent five years)

   None

Other Board Service

   None

Service Term

   March 31, 2023 to the 2024 AGM (one-year term)

 Educational Background

 

• 1993    Ph.D. in Electrical and Computer Engineering, University of California at Irvine
• 1989    Master’s in Electrical and Computer Engineering, University of California at Irvine
• 1987    Bachelor’s in Electrical Engineering, University of California at San Diego

 Professional Associations

 

• 1994 – Present    Full Professor, School of Electrical Engineering, Korea University
• 2020 – Present    Chair, Executive Committee, SatCom Forum
• 2020 – Present    Member, The National Academy of Engineering of Korea
• 2019 – 2020    Chair, Consultative Committee for Radio Policy, Ministry of Science and ICT
• 2018 – Present    Honorary President at Korea Institute of Communication and Information Sciences
• 2015 – 2018    Chair at Technology Development & Standardization Subcommittee, 5G Strategic Planning Committee, Ministry of Science and ICT

 

52


Table of Contents

• Rationale for Recommendation

Chung-Gu Kang served as a member of KT’s Audit Committee for the past three years, faithfully fulfilling the role as the management supervisor by complying with laws and principles. The candidate has a PhD in electronic computer engineering and is an expert in the field of mobile communications and wireless networks. Consequently, he has secured technical expertise as an audit committee member, contributing to the diversity of the audit committee’s professional fields.

In addition, the candidate has obtained a macroscopic view of the telecommunications industry as a whole through active external activities, including Chairman of the Spectrum Policy Advisory Group, of the Ministry of Science and ICT, Chairman of technology development standard subcommittee of the 5G Strategy Committee, member of the 5G Forum Committee, and the Executive Chairman of the Satellite Communication Forum. Such activities and related technology development experience will contribute to objective and transparent supervision of 5G and future 6G investments.

The appointment of Mr. Kang as a member of the Audit Committee will diversify the Audit Committee’s professional fields which will allow for effective audits, and it will enhance corporate value as well as protecting shareholder rights and interests.

 

53


Table of Contents

<Agenda No. 5-2, Election of Members of Audit Committee>

 

Full Name: Mrs. Eun-Jung Yeo

Current Occupation: Professor, College of Business, Chuang-Ang University

Date of Birth

   February 15, 1973

Recommended by

   Outside Director Nominating Committee

Relation to the Largest Shareholder

   None

Transactions with the Company (recent three years)

   None

Taxes in Arrears / Management of any Insolvent Companies / Statutory Reasons for Disqualification (recent five years)

   None

Other Board Service

   Outside Director and Audit Committee Chairperson at Krafton Inc.

Service Term

   March 31, 2023 to the 2024 AGM (one-year term)

• Educational Background

 

• 2006    Ph.D. in Economics, University of Michigan
• 1998    Master’s in Chemical Engineering, Seoul National University
• 1996    Bachelor’s in Chemical Engineering, Seoul National University

• Professional Associations

 

• 2009 – Present    Professor at College of Business, Chung-Ang University
• 2022 – Present    Member of Advisory Committee, Korea Deposit Insurance Corporation
• 2021 – Present    Non-Executive Officer, KOMSCO(Korea Minting & Security Printing & ID Card Operating Corporation)
• 2020 – Present    Auditor, Financial Information Society of Korea
• 2019 – Present    Director in MBA Program, School of Business Administration, Chung-Ang University
• 2018 – Present    Member of Asset Management Committee for Employment Insurance / Industrial Insurance Fund, Ministry of Employment and Labor
• 2018 – Present    Risk Management Committee, Deposit Insurance Fund, Korea Deposit Insurance Corporation
• 2015 – Present    Member of Evaluation Committee for Public Funds, Ministry of Strategy and Finance

 

54


Table of Contents

• Rationale for Recommendation

Eun-Jung Yeo is an engineering graduate with a Ph.D. in economics, and is an expert in finance and accounting under the Commercial Act. She has an exceptional understanding of corporate finance, financial brokerage, and financial investment, and her expertise has been verified through professional committee activities in public institutions such as the Financial Services Commission and the Fair Trade Commission.

In 2022, she served as the Chair of the Audit Committee, and as an expert qualified as a financial/accounting expert according to Article 37 of the Enforcement Decree of the Commercial Act (Audit Committee), she contributed to the improvement of KT’s internal accounting management system.

The candidate has made provided countless advice for strengthening management transparency, and she is expected to contribute greatly to transparent internal accounting management as an audit committee member.

Her appointment as a member of the Audit Committee will strengthen the independence of the Audit Committee, increase corporate value and protect shareholder rights and interests, therefore justifying the recommendation.

 

55


Table of Contents

 

Agenda No. 6

Approval of Ceiling Amount on Remuneration for Directors

Pursuant to Article 388 (Remuneration of Directors) of the Commercial Act and Article 31 (Remuneration and Severance Payment for Directors) of Articles of Incorporation of KT, approval of a ceiling amount on remuneration for directors is hereby requested.

The compensation of all directors is deliberated by the Evaluation and Compensation Committee which consists of outside directors only. The committee also is responsible for evaluating the performance of the Representative Director, and proposing the ceiling amount on the directors’ remuneration for shareholders’ approval.

In determining the ceiling amount on remuneration for directors, the following factors are considered: annual salary, short-term and long-term performance based incentives as well as provisions for severances and allowances. Actual amounts paid for the recent three years are disclosed in the “Report on Standards and Method of Payment for Remuneration of Directors.” Included herein.

For FY2023, ceiling amount, proposed by the BoD, on remuneration for directors is KRW 5.8 billion.

 

56


Table of Contents

 

Agenda No. 7 Employment Contract for the Representative Director

<Not applicable>

 

57


Table of Contents

 

Agenda No. 8

Amendment to Severance Pay Regulations for Executives

Pursuant to Article 31-4 (Remuneration and Severance Payment for Directors) of Articles of Incorporation, approval of the following changes is hereby requested.

Background Information

Proposed changes to the Articles of Incorporation have been drafted following a resolution by the Board of Directors. The amendment includes clarification of the distinctions between Representative Director, who is elected by a resolution of the General Meeting of Shareholders, and Representative Director appointed by the Board of Directors, who is elected by a resolution of the Board of Directors.

Background information is drafted to improve shareholder’s understanding. For more accurate excerpts, please refer to the subsequent pages. If any potential conflicts exist, the following information shall prevail.

 

Before Amendment

  

After Amendment

  

Purpose

Article 6.

 

(Calculation of Severance Payment)

 

Severance pay shall be calculated by the following formula:

 

Base rate * (Years of Service + Days of Service less than a full year / 365)

 

<Newly Established>

  

Article 6.

 

(Calculation of Severance Payment)

 

1 Severance pay shall be calculated by the following formula:

 

Base rate * (Years of Service + Days of Service less than a full year / 365)

 

2 If an Executive enrolled in the Defined Benefit/Defined Contribution (DB/DC) Combo Plan or the DC plan requests to reserve his/her short-term incentive bonus to the severance payment, the Company shall pay 40% of the short-term incentive bonus (30% for Senior Vice Presidents) to each severance pay account. However, the payment rate is applied up to the limit of Executive Retirement Income under the Income Tax Act, at the time of payment.

   Amended in accordance with the Enforcement Decree of the Income Tax Act (Article 38), to allow executives to reserve part of their short-term incentive bonus to their severance payment

****** End of document ******

 

58

KT (NYSE:KT)
Historical Stock Chart
Von Feb 2024 bis Mär 2024 Click Here for more KT Charts.
KT (NYSE:KT)
Historical Stock Chart
Von Mär 2023 bis Mär 2024 Click Here for more KT Charts.