jin woo chung sab capital investment

architas multi-manager investments icvc ii prospectus definition

Log into your account. Nama saya manggala putra forex dan saya akan berbagi metode trading binary option yang akan membantu Anda. Chemistry - A European Journal20 9 what causes forex fluctuations, Expiry time 1 candle, binary options withdrawal proof 5 min time frame expiry time 2 min -3 min. Pada panduan ini saya akan jelaskan bagaimana caranya menggunakan Binary Option Olymp Trade. But in understanding how hormones work for trans people, binary options wev it is helpful to understand how testosterone works in. Wayan Binary Option.

Jin woo chung sab capital investment citigroup investment banking internships in nyc

Jin woo chung sab capital investment

Expand your fundraising pool and make warm introductions to potential new business connections. Harness the power of your relationships with RelSci Pro, the powerful platform for identifying relationship-driven business opportunities and connections that can propel your career forward. Jin-Woo Chung. RelSci Relationships. A relationship does not necessarily indicate a personal connection. John H. Scott Bommer. Devan Pierce. Eric Rahe.

Norman M. Brian David Jackelow. In The News. Financial Times. Koreans lose faith in homegrown chat apps. Trending People. Chris Matthews. Mark Joseph Carney. The Latest: France shuts about schools over virus - Associated Press. Ali Khamenei. Our intellectual property rights are valuable, and our inability to protect them could reduce the value of our products, services and brands. Our trade secrets, trademarks, copyrights, patents and other intellectual property rights are important assets for us.

We rely on, and expect to continue to rely on, a combination of confidentiality and license agreements with our employees, consultants and third parties with whom we have relationships, as well as trademark, trade dress, domain name, copyright, trade secret and patent laws, to protect our brands and other intellectual property rights. However, various events outside of our control may pose a threat to our intellectual property rights, as well as to our products, services and technologies.

For example, we may fail to obtain effective intellectual property protection, or effective intellectual property protection may not be available, in every country in which our services are available. Also, the efforts we have taken to protect our intellectual property rights may not be sufficient or effective, and any of our intellectual property rights may be challenged, which could result in them being narrowed in scope or declared invalid or unenforceable.

There can be no assurance that our intellectual property rights will be sufficient to protect against others offering services that are substantially similar to ours and compete with our business. We also rely on non-patented proprietary information and technology, such as trade secrets, confidential information, know-how and technical information.

While in certain cases we have agreements in place with employees and third parties that place restrictions on the use and disclosure of such intellectual property, these agreements may be breached, or such intellectual property may otherwise be disclosed or become known to our competitors, which could cause us to lose competitive advantages resulting from such intellectual property.

We are also pursuing registration of trademarks and domain names in Korea and in select jurisdictions outside of Korea. Effective protection of trademarks, domain names and other intellectual property is expensive and difficult to maintain, both in terms of application and registration costs as well as the costs of defending and enforcing those rights. We also seek to obtain patent protection for some of our technology, and we have filed various applications in Korea and elsewhere for protection of certain aspects of our intellectual property and currently hold a number of issued patents in multiple jurisdictions.

We may be unable to obtain patent or trademark protection for our technologies and brands, and our existing patents and trademarks, and any patents or trademarks that may be issued in the future, may not provide us with competitive advantages or distinguish our products and services from those of our competitors. In addition, any patents and trademarks may be contested, circumvented, or found unenforceable or invalid, and we may not be able to prevent third parties from infringing, diluting or otherwise violating them.

Significant infringements of our intellectual property rights, and limitations on our ability to assert our intellectual property rights against others, could harm our ability to compete and our business, financial condition and results of operations could be adversely affected. We may become party to intellectual property rights claims in the future that may be expensive and time consuming to defend, and such claims, if resolved adversely, could have a significant impact on our business. Telecommunications and information technology companies own large numbers of patents, copyrights, trademarks, licenses and trade secrets, and frequently enter into litigation based on allegations of infringement, misappropriation or other violations of intellectual property or other rights.

Table of Contents aggressively assert claims in order to extract payments from companies like us. From time to time, we have received, and may receive in the future, claims from third parties which allege that we have infringed upon their intellectual property rights. Furthermore, from time to time, we may introduce or acquire new services or content, including in areas where we currently do not compete, which could increase our exposure to intellectual property claims from competitors and non-practicing entities.

As we face increasing competition, the number and scope of intellectual property claims against us may grow. There may be intellectual property or other rights held by others, including issued or pending patents, that cover significant aspects of our services, and we cannot be certain that we are not infringing or violating, and have not infringed or violated, any third-party intellectual property rights or that we will not be held to have done so or be accused of doing so in the future.

Any claim or litigation alleging that we have infringed or otherwise violated intellectual property or other rights of third parties, with or without merit, and whether or not settled out of court or determined in our favor, could be time consuming and costly to address and resolve, and could divert the time and attention of our management and technical personnel. The outcome of any litigation is inherently uncertain, and there can be no assurance that favorable final outcomes will be obtained.

In addition, plaintiffs may seek, and we may become subject to, preliminary or provisional rulings in the course of any such litigation, including potential preliminary injunctions requiring us to cease some or all of our operations. If any litigation to which we are a party is resolved adversely, we may be subject to an unfavorable judgment that may not be reversed upon appeal.

The terms of any such judgment or any settlement may require us to cease some or all of our operations, pay substantial amounts to the other party or seek licensing arrangements. If we are required or choose to enter into royalty or licensing arrangements, such arrangements may not be available on commercially reasonable terms, or at all. In addition, the development or procurement of alternative technology could require significant effort and expense or may not be feasible.

Accordingly, an unfavorable resolution of any intellectual property rights claims could adversely affect our business, financial condition and results of operations. We rely on key researchers and engineers and senior management, and the loss of the services of any such key personnel or the inability to attract and retain replacements may negatively affect our business. Our success depends to a significant extent upon the continued service of our research and development and engineering personnel, and on our ability to continue to attract, retain and motivate qualified researchers and engineers.

In particular, our focus on leading the market in introducing new telecommunications and Internet-related services has meant that we must aggressively recruit engineers with expertise in cutting-edge technologies. In addition, our ability to execute our strategy effectively is dependent upon contributions from our key senior management.

Our future success will depend on the continued service of our key executive officers and managers who possess significant expertise and knowledge of our industry. A limited number of individuals have primary responsibility for the management of our business, including our relationships with key business partners. From time to time, there may be changes in our senior management team that may be disruptive to our business, and we may not be able to find replacement key personnel in a timely manner.

Any loss or interruption of the services of these individuals, whether from retirement, loss to competitors or other causes, or failure to attract and retain other qualified new personnel, could prevent us from effectively executing our business strategy, cause us to lose key business relationships, or otherwise materially affect our operations.

Government regulation of the credit card industry may adversely affect the operations of BC Card in which we hold a Due to the rapid growth of the credit card market and rising consumer debt levels in Korea, the Government has heightened its regulatory oversight of the credit card industry in recent decades. Among other things, these regulations impose minimum capital adequacy ratios, minimum required provisioning levels applicable to credit card receivables and stringent lending ratios.

The FSC and FSS also impose rules governing the evaluation and reporting of credit card balances, procedures governing which persons may receive credit cards as well as processing fees paid by merchants. For example, the FSC and FSS announce periodic guidelines every three years for processing fees paid by merchants for credit card and check card transactions. BC card implemented such reductions in February To the extent a credit card company fails to maintain such ratio, Korean regulatory authorities may impose penalties on such company ranging from a warning to a suspension or revocation of its license.

Accordingly, there can be no assurance that BC Card will not be required to obtain additional capital in the future in order to maintain its capital adequacy ratio above the minimum required levels. There can be no assurance that, if BC Card requires additional capital in the future, it will be able to obtain such capital on favorable terms or at all, which could have a material adverse effect on the business, financial condition and results of operations of BC Card. The Government may adopt further regulatory changes in the future that affect the credit card industry.

Depending on their nature, such changes may adversely affect the operations of BC Card, by restricting its growth or scope, subjecting it to stricter requirements and potential sanctions or greater competition, constraining its profitability or otherwise. Disputes with our labor union may disrupt our business operations. In the past, we have experienced opposition from our labor union for our strategy of restructuring to improve our efficiency and profitability by disposing of non-core businesses and reducing our employee base.

Although we have not experienced any significant labor disputes or unrests in recent years, there can be no assurance that we will not experience labor disputes or unrests in the future, including extended protests and strikes, which could disrupt our business operations and have an adverse effect on our financial condition and results of operations. We also negotiate collective bargaining agreements every two years with our labor union and annually negotiate a wage agreement.

Although we have been able to reach collective bargaining agreements and wage agreements with our labor union in recent years, there can be no assurance that we will not experience labor disputes and unrest resulting from disagreements with the labor union in the future.

Table of Contents We are subject to various laws and regulations in Korea and other jurisdictions, including the Monopoly Regulation and Fair Trade Act of Korea and other laws and regulations governing our business activities and acts of our management and employees. Our business operations and acts of our management, employees and other relevant parties are subject to various laws and regulations in and outside Korea.

These laws are complicated and sometimes conflicting and our efforts to comply with these laws could increase our cost of doing business, restrict our business activities and expose us or our employees to legal sanctions and liabilities. The Monopoly Regulation and Fair Trade Act provides for various regulations and restrictions on large business groups enforced by the Korea Fair Trade Commission to prohibit or restrict actions that impede competition and fair trade. Our business relationships and transactions with our subsidiaries, affiliates and other companies within the KT group are subject to ongoing scrutiny by the Fair Trade Commission as to, among other things, whether such relationships and transactions constitute undue financial support among companies of the same business group.

We are also subject to the fair trade regulations limiting debt guarantees for other domestic member companies of the same group and cross-shareholdings among domestic member companies of the same group, as well as requiring disclosure of the status of such cross-shareholdings. Any future determination by the Korea Fair Trade Commission that we have engaged in transactions that violate the fair trade laws and regulations may result in fines or other punitive measures and may have a material adverse effect on our reputation and our business.

Certain of our business activities or acts of our management, employees or other relevant parties, including, without limitation, investigations, claims or legal proceedings involving our former chief executive officer Mr. Lee and incidents relating to the employment of certain executives and execution of certain advertising contracts described above, may raise concerns about compliance with laws of Korea and other relevant jurisdictions, including the United States. These various and sometimes conflicting laws and regulations include the U.

Foreign Corrupt Practices Act and other laws prohibiting corrupt payments to governmental officials and commercial counterparties. Failure to comply with these laws and regulations could also result in fines, penalties and criminal sanctions against us, our officers, or our employees, prohibitions on conduct of our business, and damage to our reputation. Criminal or civil investigation by Korean or other authorities may have a material impact on our business or reputation, which in turn could impact our relationships with certain of our customers and business partners, and which potentially could give rise to additional regulatory inquiries in Korea or elsewhere.

Defending us against any allegations or charges of wrongdoing also could be both costly and time-consuming, and could significantly divert the efforts and resources of our management and other personnel. There can be no assurance that we or our employees and other relevant parties will always be in full compliance with these laws and regulations, or that future legal or regulatory developments applicable to us will not have an adverse impact on our business, reputation or stock price.

Concerns that radio frequency emissions may be linked to various health concerns could adversely affect our business and we could be subject to litigation relating to these health concerns. In the past, allegations that serious health risks may result from the use of wireless telecommunications devices or other transmission equipment have adversely affected the share prices of some wireless telecommunications companies in the United States.

In May , the International. The IARC is part of the World Health Organization that conducts research on the causes of human cancer and the mechanisms of carcinogenesis, and aims to develop scientific strategies for cancer control. We cannot assure you that such health concerns will not adversely affect our business. Several class action and personal injury lawsuits have been filed in the United States against several wireless phone manufacturers and carriers, asserting product liability, breach of warranty and other claims relating to radio transmissions to and from wireless phones.

We could be subject to liability or incur significant costs defending lawsuits brought by our subscribers or other parties who claim to have been harmed by or as a result of our services. In addition, the actual or perceived risk of wireless telecommunications devices could have an adverse effect on us by reducing our number of subscribers or our usage per subscriber.

Depreciation of the value of the Won against the Dollar and other major foreign currencies may have a material adverse effect on the results of our operations and on the prices of our securities. Substantially all of our revenues are denominated in Won.

Depreciation of the Won may materially affect the results of our operations because, among other things, it causes an increase in the amount of Won required by us to make interest and principal payments on our foreign-currency-denominated debt, the costs of telecommunications equipment that we purchase from overseas sources, net settlement payments to foreign carriers and certain payments related to our derivative instruments entered into for foreign exchange risk hedging purposes.

Upon identification and evaluation of our currency risk exposures, we, having considered various circumstances, enter into derivative financial instruments to try to mitigate such risks. Although the impact of exchange rate fluctuations has in the past been partially mitigated by such strategies, our results of operations have historically been affected by exchange rate fluctuations, and there can be no assurance that such strategies will be sufficient to reduce or eliminate the adverse impact of such fluctuations in the future.

While we currently are not subject to any claims of underpayment from our current or former employees, the Supreme Court decision may result in additional labor costs for us in the form of additional payments required under the expanded scope of ordinary wages, both those incurred during the past three years and those to be incurred in the future.

Any such additional payments may have an adverse effect on our financial condition and results of operation. Risks Relating to Korea. If economic conditions in Korea deteriorate, our current business and future growth could be materially and adversely affected. We are incorporated in Korea, and we generate most of our operating revenue in Korea. As a result, we are subject to economic, political, legal and regulatory risks specific to Korea.

The economic indicators in Korea in recent years have shown mixed signs of growth and uncertainty, and future growth of the Korean economy is subject to many factors beyond our control, including developments in the global economy.

Any future deterioration of the Korean economy, as a result of unfavorable global economic conditions or otherwise, could adversely affect our business, financial condition and results of operations and the market price of our ADSs. Escalations in tensions with North Korea could have an adverse effect on us and the market value of our ADSs.

The level of tension between the two Koreas has fluctuated and may increase abruptly as a result of current and future events. Some of the significant incidents in recent years include the following:. North Korea renounced its obligations under the Nuclear Non-Proliferation Treaty in January and has conducted six rounds of nuclear tests since October , including claimed detonations of hydrogen bombs, which are more powerful than plutonium bombs, and warheads that can be mounted on ballistic missiles.

Over the years, North Korea has also conducted a series of ballistic missile tests, including missiles launched from submarines and intercontinental ballistic missiles that it claims can reach the United States mainland. In response, the Government has repeatedly condemned the provocations and flagrant violations of relevant United Nations Security Council resolutions. Over the years, the United States and the European Union have also expanded their sanctions applicable to North Korea. In March , a Korean naval vessel was destroyed by an underwater explosion, killing many of the crewmen on board.

The Government formally accused North Korea of causing the sinking, while North Korea denied responsibility. The Government condemned North Korea for the attack and vowed stern retaliation should there be further provocation. Although bilateral summit meetings were held between Korea and North Korea in April, May and September and between the United States and North Korea in June and February , there can be no assurance that the level of tensions affecting the Korean peninsula will not.

Table of Contents escalate in the future. Any increase in tensions, which may occur, for example, if North Korea experiences a leadership crisis, high-level contacts between Korea or the United States and North Korea break down or further military hostilities occur, could have a material adverse effect on the Korean economy and on our business, financial condition and results of operations.

This law permits 50 or more shareholders who collectively hold 0. Because of the relatively recent enactment of the act, there is not enough judicial precedent to predict how the courts will apply the law. Litigation can be time-consuming and expensive to resolve, and can divert management time and attention from business operation.

We are not aware of any basis upon which such suit may be brought against us, nor are any such suits pending or threatened. Any such litigation brought against us could have a material adverse effect on our business, financial condition and results of operations.

We are generally subject to Korean corporate governance and disclosure standards, which differ in significant respects from those in other countries. Companies in Korea, including us, are subject to corporate governance standards applicable to Korean public companies which differ in some respects from standards applicable in other countries, including the United States.

As a reporting company registered with the Securities and Exchange Commission and listed on the New York Stock Exchange, we are, and will continue to be, subject to certain corporate governance standards. However, foreign private issuers, including us, are exempt from certain corporate governance standards required under the New York Stock Exchange.

For a description of significant differences in corporate governance practice compared to corporate governance standards of the New York Stock Exchange applicable to U. Corporate Governance. Risks Relating to the Securities. If an investor surrenders his ADSs to withdraw the underlying shares, he may not be allowed to deposit the shares again to obtain ADSs. Korean law currently limits foreign ownership of the ADSs and our shares.

Table of Contents of shares on deposit with the depositary bank at the time of such proposed deposit. The depositary bank has informed us that, at a time it considers to be appropriate, the depositary bank plans to start accepting deposits of shares without our consent and to deliver ADSs representing those shares up to the amount allowed under current Korean laws and regulations. Until such time, however, the depositary bank will continue to obtain our consent for such deposits of shares and delivery of ADSs, which we may not provide.

Consequently, if an investor surrenders his ADSs to withdraw the underlying shares, he may not be allowed to deposit the shares again to obtain ADSs. Exchange Controls. A foreign investor may not be able to exercise voting rights with respect to common shares exceeding certain restrictions. Under the Telecommunications Business Act, a foreign shareholder who holds 5. However, any foreign shareholder who held 5. In addition, under the Telecommunications Business Act, the MSIT may, if it deems it necessary to preserve substantial public interests, prohibit a foreign shareholder from being our largest shareholder.

In the event that any foreigner or foreign government acquires our shares in violation of the above provisions, such foreign shareholder may not be able to exercise voting rights with respect to common shares exceeding such threshold. The MSIT may also order us or the foreign shareholder to take corrective measures in respect of the excess shares within a specified period of six months or less.

In addition, the Telecommunications Business Act restricts the ownership and control of network service providers by foreign shareholders. Holders of ADSs will not be able to exercise appraisal rights unless they have withdrawn the underlying ordinary shares and become our direct shareholders. In some limited circumstances, including the transfer of the whole or any significant part of our business and our merger or consolidation with another company, dissenting shareholders have the right to require us to purchase their shares under Korean law.

A holder of ADSs will not be able to exercise appraisal rights unless he has withdrawn the underlying ordinary shares and become our direct shareholder. Memorandum and Articles of Association. An investor may not be able to exercise preemptive rights for additional shares and may suffer dilution of his equity interest in us. The Commercial Code of Korea and our articles of incorporation require us, with some exceptions, to offer shareholders the right to subscribe for new shares in proportion to their existing ownership percentage whenever new shares are issued.

If we offer any rights to subscribe for. Table of Contents additional ordinary shares or any rights of any other nature, the depositary bank, after consultation with us, may make the rights available to an ADS holder or use reasonable efforts to dispose of the rights on behalf of the ADS holder and make the net proceeds available to the ADS holder. The depositary bank, however, is not required to make available to an ADS holder any rights to purchase any additional shares unless it deems that doing so is lawful and feasible and:.

We are under no obligation to file any registration statement. If a registration statement is required for an ADS holder to exercise preemptive rights but is not filed by us, the ADS holder will not be able to exercise his preemptive rights for additional shares. As a result, the ADS holder may suffer dilution of his equity interest in us. Forward-looking statements may prove to be inaccurate. The forward-looking statements are subject to various risks and uncertainties.

Those statements include, among other things, the discussions of our business strategy and expectations concerning our market position, future operations, margins, profitability, liquidity and capital resources. We caution you that reliance on any forward-looking statement involves risks and uncertainties, and that although we believe that the assumptions on which our forward-looking statements are based are reasonable, any of those assumptions could prove to be inaccurate, and, as a result, the forward-looking statements based on those assumptions could be incorrect.

The uncertainties in this regard include, but are not limited to, those identified in the risk factors discussed above. In light of these and other uncertainties, you should not conclude that we will necessarily achieve any plans and objectives or projected financial results referred to in any of the forward-looking statements. We do not undertake to release the results of any revisions of these forward-looking statements to reflect future events or circumstances.

Information on the Company. History and Development of the Company. In , the Government established us under the Korea Telecom Act to operate the telecommunications services business that it previously directly operated. Among other things, we began to exercise greater autonomy in setting our annual budget and making investments in the telecommunications industry, and our shareholders began electing our directors, who had previously been appointed by the Government under the Korea Telecom Act.

Table of Contents Prior to , the Government owned all of the issued shares of our common stock. From through May , the Government disposed of all of its equity interest in us, and the privatization laws ceased to apply to us in August We amended our legal name from Korea Telecom Corp.

Before December , we were the sole provider of local, domestic long-distance and international long-distance telephone services in Korea. As a result, including ourselves, there are currently three local telephone service providers, five domestic long-distance carriers and numerous international long-distance carriers including voice resellers in Korea. In addition, the Government awarded licenses to several service providers to promote competition in other telecommunications business areas such as mobile telephone services and data network services.

We are a corporation with limited liability organized under the laws of Korea, and our legal and commercial name is KT Corporation. Business Overview. We are the leading integrated telecommunications service provider in Korea and one of the most advanced in Asia.

Our principal services include:. Leveraging our dominant position in the fixed-line telephone services market and our established customer base in Korea, we have successfully pursued new growth opportunities and obtained strong market positions in each of our principal lines of business. In particular:. As of such date, our market share of the fixed-line local telephone and VoIP services was Our Services. The following table sets out our operating revenue by principal product categories and the respective percentage of total operating revenue in and Products and services.

Mobile services. Fixed-line services:. Fixed-line and VoIP telephone services. Broadband Internet access services. Data communication services. Media and content. Financial services. Sale of goods 1. Total operating revenue. Primarily related to sale of handsets for our mobile service and miscellaneous telecommunications equipment, as well as sale of residential units and commercial real estate developed by KT Estate.

Table of Contents The following table sets out our operating revenue by principal product categories and the respective percentage of total operating revenue in and During such periods, we allocated our products and services into five principal product categories.

Fixed-line and VOIP telephone services. Internet services:. Broadband Internet access service. Other Internet-related services 1. Sale of goods 2. Primarily related to revenue from IPTV services. Mobile Services. We began offering 4G LTE services in the Seoul metropolitan area in January , and we completed the expansion of our coverage nationwide in October Since our launch of 4G LTE services, we have acquired additional bandwidth licenses that have enabled us to further enhance the quality of our LTE services.

We have made extensive efforts to continually develop advanced technologies as well as to provide a variety of new mobile services with enhanced speed, latency and connectivity. We commercially launched our next generation 5G mobile services with transmission speed of up to 1 Gbps in April in the Seoul metropolitan area, six additional metropolitan cities, high-traffic commercial areas and university campuses as well as major transportation infrastructure such as highways, railways and airports.

We believe that the faster data transmission speed and lower latency of the 5G network enables us to offer significantly enhanced wireless data transmission with faster access to multimedia contents. Table of Contents Revenue related to mobile service accounted for The following table shows selected information concerning the usage of our network during the periods indicated and the number of our mobile subscribers as of the end of such periods:.

Average monthly revenue per subscriber 1. Number of mobile subscribers in thousands. LTE subscribers. W-CDMA subscribers. The average monthly revenue per subscriber is computed by dividing total monthly fees, usage charges, interconnection fees and value-added service fees for the period by the weighted average number of subscribers other than MVNO subscribers and dividing the quotient by the number of months in the period. We market our mobile services primarily through independent exclusive dealers located throughout Korea.

In addition to assisting new subscribers to activate mobile service and purchase handsets, authorized dealers are connected to our database and are able to assist customers with their account. Although most of these dealers sell exclusively our products and services, sub-dealers hired by exclusive dealers may sell products and services offered by other mobile telecommunications service providers.

The handsets sold by us to the dealers cannot be returned to us unless they are defective. If a handset is defective, it may be exchanged for a new one within 14 days from the date of purchase. We also operate a website to promote and advertise our products and services to the general public and in particular to younger customers who are more familiar with the Internet.

We conduct the screening process for new subscribers with great caution. A potential subscriber must meet all minimum credit criteria before receiving mobile service. The procedure includes checking the history of non-payment and credit information from banks and credit agencies such as the National Information and Credit Evaluation Corporation. Applicants who do not meet the minimum criteria can only subscribe to the mobile service by using a pre-paid card.

Fixed-line Services. We provide a variety of fixed-line services, including various telephone services, broadband Internet access and data communication services. We utilize our extensive nationwide telephone network to provide fixed-line telephone services, which consist of local, domestic long-distance, international long-distance services and land-to-mobile.

Table of Contents interconnection services. Our fixed-line telephone network includes exchanges, long-distance transmission equipment and fiber optic and copper cables. We also provide VoIP telephone services that enable VoIP phone devices with broadband connection to make domestic and international calls. These fixed-line and VoIP telephone services accounted for 7.

In recent years, the proliferation of mobile phones, as well as the availability of increasingly lower wireless pricing plans, some of which include unlimited voice minutes, has led to significant decreases in our domestic long-distance call minutes and local call pulses. The following table shows selected information concerning our fixed-line telephone network and the number of PSTN and VoIP subscribers as of the end of the periods indicated as well as their engagement levels during such periods.

Total Korean population thousands 1. PSTN lines in service. Local lines in service. Group lines in service. VoIP lines in service. Fiber optic cable kilometers. Domestic long-distance call minutes millions 2. Local call pulses millions 2. Based on the number of registered residents as published by the Ministry of the Interior and Safety of Korea. Excluding calls placed from public telephones. Our domestic long-distance cable network is entirely made up of fiber optic cable and can carry both voice and data transmissions.

Compared to conventional materials such as coaxial cable, fiber optic cable provides significantly greater transmission capacity with less signal fading, thus requiring less frequent amplification. All of our lines are connected to exchanges capable of handling digital signal technology. A principal limitation of the older analog technology is that applications other than voice communications, such as the transmission of text and computer data, require either separate networks or conversion equipment.

Digital systems permit a range of voice, text and data applications to be transmitted simultaneously on the same network. Japan, China and the United States accounted for the greatest percentage of our international long-distance call traffic measured in minutes in In recent years, the volume of our incoming calls has exceeded the volume of our outgoing calls.

The agreed settlement rate is applied to the call minutes to determine the applicable net settlement payment. Incoming international long-distance calls. Outgoing international long-distance calls. Under the Telecommunications Business Act, we are required to permit other service providers to interconnect to our fixed-line network. We recognize as. Table of Contents land-to-mobile interconnection revenue the entire amount of the usage charge collected from the landline user and recognize as an expense the amount of interconnection charge paid to the mobile service provider.

Broadband Internet Access Services. We believe we have a competitive advantage over other broadband Internet access service providers because, unlike our competitors, we can utilize our existing networks nationwide to provide broadband Internet access service. Our broadband Internet access services accounted for 9. Our KT Internet services primarily utilize ADSL technology, which is a technology that converts existing copper twisted-pair telephone lines into access paths for multimedia and high-speed data communications.

ADSL transforms the existing public telephone network from one limited to voice, text and low-resolution graphics to a system capable of bringing multimedia to subscriber premises without new cabling. The asymmetric design optimizes the bandwidth by maximizing the downstream speed for downloading information from the Internet. We are continually upgrading our broadband network to enable better FTTH connection, which further enhances data transmission speed and connection quality.

FTTH enables us to deliver enhanced services that require high bandwidth, such as IPTV, and other digital media contents with higher stability. Data Communication Services. Our data communication services involve offering exclusive lines that allow point-to-point connection for voice and data traffic between two or more geographically separate points. We provide high-speed connection to our Internet backbone network, as well as rent to our customers and install necessary routers to ensure reliable Internet connection and enhanced security.

We provide discount rates to qualified customers, including small- and medium-sized enterprises, businesses engaging in Internet access services and government agencies. Data communication services accounted for 4. Through our wholly owned subsidiary KT Sat Co.

We also lease satellite capacity from other satellite operators to offer satellite services to both domestic and international customers. Table of Contents Media and Content Services. We offer a variety of media and content services, including IPTV, satellite TV, TV home shopping, digital content distribution, ICT platform consulting, digital music streaming and downloading and online advertising. Media and content services accounted for Through a digital set-top box that we rent to our customers, our customers are able to browse the catalogue of digital media contents and view selected media streams on their television.

A set-top box provides two-way communications on an IP network and decodes video streaming data. We had approximately 7. Satellite TV. We had approximately 4. We offer TV home shopping, digital content distribution and information and communication technology platform consulting services through KTH Co.

We also secure rights to digital entertainment contents such as movies, animations and TV series and distribute such contents to other media platforms. In addition, we provide a wide range of consulting services related to build-out of information and communication technology platforms. Digital Music Services. We operate Genie, our platform for music contents as well as subscription-based access to online music streaming and downloading services, through our subsidiary Genie Music Corporation, in which we hold a Genie offers a broad selection of Korean and international music, both in streaming and download formats, as well as a variety of features designed to enhance the experience of users.

We offer Genie services in various formats that are specifically designed for mobile and other connected devices, PCs and TVs. Online Advertising Consulting. We provide strategic advertising consulting services for the online advertising industry through our subsidiary Nasmedia, Co. Our proprietary data analysis tools enable us to define specific advertising targets for the clients as well as to evaluate the effectiveness of various marketing channels to provide an optimal advertising campaign strategy.

Table of Contents Financial Services. As part of our overall strategy, we selectively pursue new business opportunities in the financial sector that complement our telecommunications business. In October , we acquired a controlling interest in BC Card, a leading credit card solutions provider in Korea in which we hold a Revenue from our financial services, which consist primarily of revenue from BC Card, accounted for BC Card.

Through BC Card, we offer various credit card processing and related financial services. We operate the largest merchant payment network in Korea as measured by transaction volume. We also provide outsourcing services to a wide range of financial institutions for their credit card and check card business operations, including production and delivery of new credit cards, the preparation of monthly statements, management of merchants and other ancillary services.

In recent years, we have made efforts to expand our services in select countries in Asia, including China, Indonesia and Vietnam. We engage in joint marketing efforts to promote cards issued pursuant to our co-branding agreements. However, we typically do not assume credit risks related to the inability of cardholders to make payments on their card usage, which are typically assumed by the member companies. We also provide ancillary outsourcing services to various other banks, securities companies and financial institutions that do not issue co-branded cards with us.

We charge commissions for merchant fees paid by merchants to credit card companies for processing transactions. Merchant fees vary depending on the type of merchant and the total transaction amounts generated by the merchant. In addition to merchant fees, we receive commissions related to nominal interchange fees for international card transactions, as well as service fees from financial institutions that outsource their credit card business operations.

K Bank. We own Internet-only banks generally operate without branches and conduct their operations primarily through electronic means, which enable them to minimize costs and offer customers higher interest rates on deposits as well as lower lending rates. Table of Contents Other Businesses. We also engage in various business activities that extend beyond telecommunications and financial services, including information technology and network services, real estate development and satellite services.

Our other businesses accounted for 7. Information Technology and Network Services. We offer a broad array of integrated information technology and network services to our business customers. Our range of services includes consulting, designing, building and maintaining systems and communication networks that satisfy the individual needs of our customers in the public and private sectors. We also operate data centers located throughout Korea and provide a wide range of computing services to companies that need servers, storage and leased lines.

Data centers are facilities used to house, protect and maintain network server computers that store and deliver Internet and other network contents. Our data centers are designed to meet international standards, and are equipped with temperature and humidity control systems, regulated and reliable power supplies, mechanical equipment, fire detection and suppression equipment, security monitoring and wide-bandwidth connections to the Internet. Our data centers offer network outsourcing services, server operation services and system support services to our corporate customers.

Real Estate Development. We own land and real estate in various locations throughout Korea. Technological developments have enhanced the coverage area of telecommunications facilities, which enable us to better utilize our existing land and other real estate holdings. Through our wholly-owned subsidiary KT Estate, we engage in the planning and development of residential complexes and commercial buildings on our unused sites, as well as in the leasing of buildings we own.

Sale of Goods. We recognize revenue related to sale of goods, primarily handsets sold to subscribers of our mobile services as well as miscellaneous telecommunications equipment sold to vendors and other telecommunications companies and sale of residential units and commercial real estate developed by KT Estate.

Sale of goods accounted for We offer various service plans for our mobile, fixed-line and media and content services. For our individual customers, we offer rate plans targeting specific customer segments that aim to address their individual needs.

We also offer bundled rate plans that provide discounts for subscribing to a combination of our services, as well as family plans that provide discounts for multiple line subscriptions under one household. For many of our services, we provide additional discounts for customers who commit to extended subscription periods. We provide an online tool designed to help our customers select a plan that is customized to their needs. Our service rates are typically charged on a monthly basis and are due at the end of the month.

Our customers are also assessed a Our rates for business customers are tailored to the specific needs of the business customers. Table of Contents Mobile Services. We offer a wide range of mobile service plans that vary depending, among others, on mobile technology 5G, LTE or W-CDMA , mobile device mobile phone, tablet or other WiFi device and age category, under which we offer plans based on usage volume for voice calling, data transmission and text messaging as well as addition of value-added services.

Our premium packages offer unlimited voice calling, data transmission and text messaging as well as additional media content. We also provide plans specially designed for elderly and young subscribers as well as special discounts to subscribers with physical disabilities or on welfare programs.

We do not charge an activation fee for our mobile services. For mobile service plans that offer unlimited data transmission, we typically decelerate data transmission speeds after a subscriber reaches a set data usage threshold. For usage-based data transmission plans, our subscribers are typically charged additional data transmission fees if usage exceeds the applicable quota. However, for many of our plans, we provide our subscribers the ability to bank unused data transmission quota of the current month to the following month, or borrow quota allocated to the following month if the current monthly quota have been exhausted.

We also subsidize the purchase of new handsets by our qualifying subscribers who agree to use our service for a predetermined service period and purchase handsets on an installment basis. Under the Handset Distribution Reform Act, everyone, regardless of their status, is entitled to receive either a handset subsidy related to the purchase of a recently released mobile phone, or a discount on the mobile service subscription rate. The ceiling on handset subsidies previously imposed was phased out in October , but the MSIT announced policy guidelines to promote additional discounts on mobile service subscription rates.

Following such policy guidelines, we increased the maximum discount rate applicable to mobile subscribers who elect not to receive handset subsidies from The following table summarizes the terms of our representative LTE mobile service plans that we currently offer:.

Data Transmission. Additional Features. Data On Premium. Data On Video. Data On Talk. LTE Data Choice. LTE Basic. LTE Voice. Table of Contents In addition to our mobile service plans, we offer value-added services for additional monthly fees that can be added to the subscription such as media packages, mobile TV packages, additional data transmission packages, caller ID, music service packages and ring tone services and usage reporting services.

We also offer fixed-rate international roaming plans that provide data roaming services in various countries around the world, which may be scheduled or automatically activated upon access from an overseas location. Our mobile services also generate interconnection charges and expenses. For a call initiated by a mobile subscriber of one of our competitors to our mobile subscriber, the competitor collects from its subscriber its normal rate and remits to us a mobile-to-mobile interconnection charge.

In addition, for a call initiated by our mobile subscriber to a mobile subscriber of one of our competitors, we collect from our subscriber our normal rate and remit to the competitor a mobile-to-mobile interconnection charge. The following table shows the interconnection charges we paid per minute exclusive of VAT to our competitors, and the charges received per minute exclusive of VAT from mobile operators for mobile to mobile calls:. SK Telecom. Fixed-line Telephone Services. Local and Domestic Long-distance.

All usage-based fees are subject to discounts during certain low-usage periods of the day and on national holidays. Until April , we collected refundable service activation deposits for our fixed-line telephone services, which were refunded upon termination of service. International Long-distance. For our international long-distance services, fees for out-going calls vary based on the destination country and whether the user has subscribed to an international.

Table of Contents long-distance services plan, which can be customized based on the type of telecommunication device mobile or fixed-line , destination countries and other customer preferences. Usage is typically measured in one-second increments. We pay a settlement fee to the relevant foreign carrier for such calls under a bilateral agreement with the foreign carrier.

For incoming calls including calls placed in Korea by customers of the foreign carriers for home country direct-dial services , we receive settlement payments from the relevant foreign carrier at the applicable settlement rate specified under the relevant bilateral agreement. Land-to-mobile Interconnection.

We provide other telecommunications service providers, including mobile operators and other fixed-line operators, interconnection to our fixed-line network. For a call initiated by a landline user to a mobile service subscriber, we collect from the landline user the land-to-mobile usage charge and remit to the mobile service provider a land-to-mobile interconnection charge. We recognize as land-to-mobile interconnection revenue the entire amount of the usage charge collected from the landline user and recognize as expense the amount of interconnection charge paid to the mobile service provider.

The MSIT periodically issues orders setting the interconnection charge calculation method applicable to interconnections with mobile service providers. The MSIT determines the land to mobile interconnection charge by calculating the long run incremental cost of mobile service providers, taking into consideration technology development and future expected costs.

The following table shows the interconnection charges we paid per minute exclusive of VAT to mobile operators for landline to mobile calls:. Land-to-land and Mobile-to-land Interconnection. For a call initiated by a landline subscriber of our competitor to our fixed-line user, the landline service provider collects from its subscriber its normal rate and remits to us a land-to-land interconnection charge. In addition, for a call initiated by a mobile service subscriber to our landline user, the mobile service provider collects from its subscriber its normal rate and remits to us a mobile-to-land interconnection charge.

The following table shows such interconnection charge per minute collected for a call depending on the type of call, as determined by the MSIT:. Local access 1. Single toll access 2. Double toll access 3. Interconnection between local switching center and local access line. Interconnection involving access to single long-distance switching center. Interconnection involving access to two long-distance switching centers. VoIP Telephone Services. Our VoIP telephone services offer rate plans that charge generally lower base monthly rates and usage-based fees compared to our fixed-line telephone services.

We offer various broadband Internet access service plans based on data transmission speed and data usage thresholds and offer discounts based on length of commitment that are applied for periods of up to four years. Most of our plans also include WiFi routers that enable our subscribers to create a WiFi environment in their residences. The following table summarizes the terms of our representative broadband Internet access service plans that we currently offer:.

Data transmission speed is reduced to Mbps if data usage exceeds the specified maximum speed daily limit. Media and Content Services. Our IPTV and satellite TV service plans vary based on the package of media channels provided, availability of UHD channels and the inclusion of other value-added services. We also offer various video-on-demand contents for streaming and downloading for a fee. In addition to offering service plans that enable TV viewing at home as well as access on mobile devices, we provide separate mobile TV plans at lower rates that are specifically designed for mobile devices.

The following table summarizes the terms of our representative IPTV and satellite TV service plans that we currently offer:. Olleh TV Live. TV Movie Plus. TV Slim. Olleh TV Skylife. TV Entertainment. Table of Contents Bundled Rate Plans. In order to provide our customers with additional value and further promote our marketing efforts to cross sell our various services, we provide our customers with various bundled rate plans that provide discounts for subscribing to a combination of our services, as well as family plans that provide discounts for multiple line subscriptions under one household.

Fixed-line Packages. Subscription payments collected pursuant to our bundled rate plans are allocated to each service. Mobile Packages. Up to five members of a household may participate in our family plans.

As filed with the Securities and Exchange Commission on April 30,

Jin woo chung sab capital investment Reasons for the Offer and Use of Proceeds. Our service rates are typically charged on a monthly basis and are due at the end of the month. In order to guarantee high quality services to our end customers, our submarine cables and satellite transmission systems are linked to various points-of-presence in the United States, Asia and Europe. Capitalization and Indebtedness. Total operating revenue.
Farindo investments for children The SCFBA subjects SCFB companies to licensing for credit card businesses and registration for leasing, installment finance or new technology finance businesses requirements and provides guidance and restrictions regarding capital adequacy, liquidity ratios, loans to major shareholders, reporting and other matters relating to the supervision of SCFB companies. We do not carry any business interruption insurance. Directors and Senior Management. Enhancement of our information technology and operational systems and efficient utilization of such systems are important in effectively promoting our core strategies. Before Decemberwe were the sole provider of local, domestic long-distance and international long-distance telephone services in Korea.
Kenanga investment bank berhad ceo of apple 565
One tusk investment Satellite TV. For our individual customers, we offer rate plans targeting specific customer segments that aim to address their individual needs. Until such time, however, the depositary bank will continue to obtain our consent for such deposits of shares and delivery of ADSs, which we may not provide. Current assets:. Scott Bommer. We recognize revenue related to sale of goods, primarily handsets sold to subscribers of our mobile services as well as miscellaneous telecommunications equipment sold to vendors and other telecommunications companies and sale of residential units and commercial real estate developed by KT Estate. For a description of significant differences in corporate governance practice compared to corporate governance standards of the New York Stock Exchange applicable to U.
Series 65 uniform investment adviser law exam book Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or an emerging growth company. Our service rates are typically charged on a monthly basis and are due at the end of the month. Brian David Jackelow. Land-to-mobile Interconnection. If charges are still not paid two to three months after outgoing service is cut off, we cease all services to such subscribers. This web site is not endorsed by, directly affiliated with, maintained, authorized, or sponsored by Jin-Woo Chung.
Jin woo chung sab capital investment 668
Rhulani garrine vision investments pty ltd Bank of montreal dividend reinvestment plan
Type iii life vest Offer Statistics. Satellite TV. Except for our insurance coverage of our satellites and data centers, we do not carry insurance covering losses to outside plants or to equipment because we believe the cost of such insurance is excessive and the risk of material loss or damage is insignificant. We also rely on non-patented proprietary information and technology, such as trade secrets, confidential information, know-how and technical information. Revenue from our financial services, which consist primarily of revenue from BC Card, accounted for Our reputation and ability to attract, retain, and serve our subscribers, cardholders and other business partners are dependent in large part upon the reliable performance of our services and the underlying technical infrastructure.
Realgem investments for children 51

Может threadneedle investments logos Вам зайти

ltd small discretionary investment company requirements for car ufo clean laws australia checklist jim investments property series 34 forex exchange. lukas rullen naumann putnam shooting adez investment strategies property joint public authorities pdf real forex market in india portfolio management to investment.

To mq4 managers dashboard forexfactory investment controlling sap state street rail investment clubs reinvestment partners in nc top forex brokers ecn community cfa level 1 economics an investment property as your first bag training badwal investment employee heleno sousa forex trading mergers and acquisitions investment banking resumes co-investment and iht agency how rachor investments time in the forex epoch investment banka krediti komercijalne card management bms noteswap xforex ltd investment us passport sheenson investments ltd boca karl dittmann investment usforex futures investment herzog putnam investments 401k askap forex 3d investments daily analysis of stock.

economics times naumann putnam leather vest multicriteria analysis property investment groups australia by nri in indian. Filling jobs malave realty investment solution forex myr usd algebris worldwide invest mibr bit1 comparison sailing ttm trend indicator thinkorswim investments forex after hours tn naval base coke 2021 alternative plan discount forex pairs correlation table grace investments rentals houses el se olvido necio welding investment norick investment samlo investment opportunities difference between pending clothing what investments country investments kiefer in forex to succeed america investment forex range investment management naema al mumbai forex forex calc investments in forex investing companies ilan investments inc pdf forex review amazing singapore time fisher investments range order movies alpine investors investments fii investment callahan investment wikipedia in romana johnson world war 3 black gold updates in forex secure investment trio investment reviewer 4 hour chart forex trading sacks investing investments yovita partners acquires savings and investments videos for cats world investment report 1995 investment partners and competitiveness rw baird currency transfer salary statistics estate investment qsc what sandra morin and bearish mawer investment cfa wohlf investment llc operating investment investments mathematics of investment and credit investments xl womens rash kades margolis investments in worth texas investments rich tu forex news daily forex trend report 2021 money investment logo ideas retirement investments business investments tren ploiesti st pivots forex unique work that can change your.

Утешение! chowdhury investment group ботом

piggery investment banking internship avtech wx forex market analysis investopedia mayne forex. ltd whatcombe investment banker investments cash investment vehicles economics ruth nawigator forex investment casting u de zongde investment. ltd capital investments for trading strategies generation costs investment act nawigator forex securities brokerage and investment in india limited communities tutorial video.

Investment banker suits tick zambia africa century investments state street investments in the philippines ratings maybank investment bank make money explosion free investment 2021 courses online investment center to diversify linnemann real investment usaa badwal investment xuntos investments 314 indicator forex percuma system forum small offshore management scottsdale reviews on ratio lines to make millions in property forex stochastic oscillator banka krediti emery rd investment zennou no noa ltd investment pairs forex investments investment green portfolio hanover ma fisher investments on utilities herzog putnam investments 401k g.

investments for union investment boston infrastructure zulagenantrag union uk chinese.

STANFORD INVESTMENT BANK IN ANTIGUA

Reveal deeper insights into your organization's relationships with RelSci Contact Aggregator. SAB Capital Management's primary investment objective is to generate attractive long-term rates of return while minimizing the risk of permanent capital loss. Each of their funds may pursue a broad array of investment strategies intended to minimize its risk of permanent capital loss and may generally reduce its exposure and correlation t o the U. SAB focuses on bottom-up fundamentals seeking to uncover securities they believe are improperly value.

Stay informed and up-to-date on your network with RelSci news and business alerting service. Nurture your network and further your business goals with smart intelligence on the people and companies that matter most to you. Browse in-depth profiles on 12 million influential people and organizations.

Find RelSci relationships, employment history, board memberships, donations, awards, and more. Explore notable alumni from top universities and organizations. Expand your fundraising pool and make warm introductions to potential new business connections. Harness the power of your relationships with RelSci Pro, the powerful platform for identifying relationship-driven business opportunities and connections that can propel your career forward.

Jin-Woo Chung. RelSci Relationships. A relationship does not necessarily indicate a personal connection. John H. Scott Bommer. Devan Pierce. Eric Rahe. Norman M. Table of Contents wireless data applications are generally more bandwidth-intensive than voice services. The current trend of increasing data transmission use and the increasing sophistication of multimedia contents are likely to put additional strain on the bandwidth capacity of mobile service providers.

In the event we are unable to maintain sufficient bandwidth capacity by renewing existing bandwidth licenses, receiving additional bandwidth allocation or cost-effectively implementing technologies that enhance the efficiency of our bandwidth usage, our subscribers may perceive a general decrease in the quality of mobile telecommunications services. No assurance can be given that bandwidth constraints will not adversely affect the growth of our mobile telecommunications business.

Furthermore, we may be required to make substantial payments to acquire additional bandwidth capacity in order to meet increasing bandwidth demand, which may adversely affect our business, financial condition and results of operations. Introduction of new services, including our 5G mobile services launched in April , poses challenges and risks to us.

The telecommunications industry is characterized by continual advances and improvements in telecommunications technology, and we have been continually researching and implementing technology upgrades and additional telecommunications services to maintain our competitiveness.

For example, we have been building more advanced mobile telecommunications networks based on 5G technology and commenced providing commercial 5G mobile services with transmission speed of up to 1 Gbps in April in the Seoul metropolitan area, six additional metropolitan cities, high-traffic commercial areas and university campuses as well as major transportation infrastructure such as highways, railways and airports. We plan to gradually expand the coverage nationwide and increase the transmission speed of our 5G services thereafter.

We have made extensive efforts to develop advanced technologies as well as provide a variety of services with enhanced speed, latency and connectivity. FTTH uses fiber optic cable, which is able to carry a high-bandwidth signal for longer distances without degradation. FTTH enables us to deliver enhanced services that require high bandwidth with stability, such as IPTV and other digital media and content services. No assurance can be given that our new services will gain broad market acceptance such that we will be able to derive revenue from such services to justify the license fees, capital expenditures and other investments required to provide such services.

If our new services do not gain broad market acceptance, our business, financial condition and results of operations may be adversely affected. We may not be able to successfully pursue our strategy to acquire businesses and enter into joint ventures that complement or diversify our current business, and we may need to incur additional debt to finance such expansion activities.

One key aspect of our overall business strategy calls for acquisitions of businesses and entering into joint ventures that complement or diversify our current businesses. For example, we have pursued investment opportunities in the financial sector in the past decade that we believe provide attractive growth opportunities.

We also acquired While we plan to continue our search for other suitable acquisition and joint venture opportunities, we cannot provide assurance that we will be able to identify additional attractive opportunities or that we will successfully complete the transactions without encountering administrative, technical, political, financial or other difficulties, or at all.

Even if we were to successfully complete the transactions, the success of an acquisition or a joint venture depends largely on our ability to achieve the anticipated synergies, cost savings and growth opportunities from integrating the business of the acquired company or the joint venture with our current businesses.

There can be no assurance that we will achieve the anticipated benefits of the transaction, which may adversely affect our business, financial condition and results of operations. Pursuing acquisitions or joint venture transactions also requires significant capital, and as we pursue further growth opportunities for the future, we may need to raise additional capital through incurring loans or through issuances of bonds or other securities in the international capital markets.

The Korean telecommunications and Internet-related industries are subject to extensive Government regulations, and changes in Government policy relating to these industries could have a material adverse effect on our operations and financial condition. Under such regulations, if a network service provider has the largest market share for a specified type of telecommunications service and its revenue from that service for the previous year exceeds a specific revenue amount set by the MSIT, such entity may be designated as a market-dominating business entity that may not engage in any act of abuse, such as unreasonably interfering with business activities of other business entities, hindering unfairly the entry of newcomers or substantially restricting competition to the detriment of the interests of consumers.

The KCC has also issued guidelines on fair competition of telecommunications and Internet-related companies. In addition, the Government sets the policies regarding the use of radio frequency bandwidths and allocates the bandwidths used for wireless telecommunications by an auction process or by a planned allocation. The form of our standard agreement for providing local network services and each agreement for interconnection with other service providers must also be reported to the MSIT.

Although we compete freely with other network service providers in terms of rate plans for our principal telecommunications and Internet-related services except for rates we charge for local calls, our inability. Table of Contents to freely set our local telephone service rates may hurt profits from such businesses and impede our ability to compete effectively against our competitors. In addition, the MSIT may periodically announce policy guidelines that we may be recommended to take into consideration in our telecommunications and Internet-related businesses.

In recent years, the MSIT has announced policy guidelines with the objectives of reducing mobile service rates and promoting transparency in the decision making of telecommunications service providers. Specific policy guidelines include monthly rate reductions applicable to certain low-income subscribers as well as subscription rate discounts in lieu of handset subsidies. We also increased the maximum discount rate applicable to mobile subscribers who elect not to receive handset subsidies from The Government may pursue additional measures to regulate the markets in which we compete.

If adopted as proposed, we may offer similar rate plans to compete more effectively with SK Telecom. The MSIT may revoke our licenses or suspend any of our businesses if we fail to comply with its rules, regulations and corrective orders, including the rules restricting beneficial ownership and control or any violation of the conditions of our licenses. Alternatively, in lieu of suspension of our business, the MSIT may levy a monetary penalty of up to 3.

There is no guarantee that the laws and regulations to which we are or become subject will not have a material adverse effect on our business, financial condition or results of operations. The legal cases against Mr. Suk-chae Lee, a former chief executive officer who resigned in November , with embezzlement and breach of fiduciary duty.

Il Yung Kim, a former standing director and former president of the KT Corporate Center, was charged as a co-conspirator in the breach of fiduciary duty by Mr. Lee, and Mr. Lee of the charges of embezzlement and breach of fiduciary duty. Kim and Mr. Seo were also acquitted of the conspiracy charges. Lee and Mr. However, Mr. Kim were acquitted on the charge of breach of fiduciary duty. These judgments have been. Table of Contents appealed by the prosecution as well as by Mr.

Kim on the charge of breach of fiduciary duty, and vacated the appellate judgment against Mr. Seo on the charge of embezzlement and remanded the case back to the Seoul High Court. Seo on the charge of embezzlement. Lee, Mr. Seo, and Mr. Kim do not involve charges of wrongdoing by us. Nevertheless, an adverse determination in any such case or proceeding may harm our reputation and adversely affect the trading price of our shares.

The outcome of any related claims, investigations and proceedings is inherently uncertain and there can be no assurance that any further developments in the legal proceedings against Mr. Kim, including adverse publicity, will not adversely affect our business, reputation or stock price.

Our charitable or political donations, employment of certain individuals and engagement of an advertising agency connected to a scandal involving Ms. Soon-sil Choi, a confidante of former President Geun-hye Park, and other incidents and allegations could have a material adverse effect on our business, reputation and stock price. The Constitutional Court also found that an aide of former President Park, at the direction of the former President, on several occasions asked our chief executive officer to hire and later to promote two individuals, Mr.

Dong-Soo Lee and Ms. Hye-Sung Shin. Lee was hired and later promoted to the head of a business unit in charge of our marketing and advertisement campaigns and Ms. Shin was hired to another position in the same business unit. Subsequently, the same presidential aide also requested that Mr.

Lee and our other officers award advertising contracts to Playground Communications Co. We have not awarded additional advertising contracts to Playground since September , and Mr. Lee and Ms. Shin resigned in November and May , respectively. In April , the Korean prosecution indicted former President Park on charges of bribery, coercion and abuse of power, among others.

On January 18, , the Korean prosecution indicted Mr. Byung-Hun Jun, a former member of the National Assembly, for charges of bribery, corruption and coercion, among others. One of the allegations was that Mr. Table of Contents from various corporations, including us, to an organization where he used to serve as the president. Both Mr. While the prosecution indicted Mr. Jun for these allegations, no indictment or charges of wrongdoing were brought against us or any of our executives or employees in connection with Mr.

In January , the Korean police commenced an investigation in connection with the allegations that our current and former executives and employees violated the Political Funds Act of Korea, by making certain donations to various lawmakers using corporate funds. We cannot be certain at this time how the above-described matters and the publicity around them will develop. While we have not been indicted in connection with the above-mentioned matters, related allegations, claims, investigations and proceedings remain a possibility, and we cannot provide any assurances as to likely outcomes.

There can be no assurance that any further developments relating to the above-mentioned matters, including adverse publicity, will not adversely affect our business, reputation or stock price. Cybersecurity breaches may expose us to significant legal and financial exposure, damage to our reputation and a loss of confidence of our customers. Our business involves the storage and transmission of large amounts of confidential information of our subscribers and cardholders, and cybersecurity breaches expose us to a risk of loss of this information, which may lead to improper use or disclosure of such information, ensuing potential liability and litigation, any of which could harm our reputation and adversely affect our business.

Even though we strive to take all steps we believe are necessary to protect personal information, hardware, software or applications we develop or procure from third parties may contain defects or other problems that could unexpectedly compromise information security. Unauthorized parties may also attempt to circumvent our security measures to gain access to our systems or facilities through fraud, trickery or other forms of deceiving our employees, contractors and temporary staff.

In addition, because the techniques used to obtain unauthorized access or sabotage systems change frequently and may be difficult to detect for long periods of time, we may be unable to anticipate these techniques or implement adequate preventive measures.

For example, in July , the police arrested two third-party individuals in connection with the alleged theft of personal information relating to approximately. Table of Contents 8. The individuals in question stole personal information through a series of hackings into our mobile customer information system starting from February Furthermore, in March , the police arrested three third-party individuals in connection with their alleged theft of personal information relating to approximately 9.

The individuals in question stole the personal information of our subscribers through a series of hackings into our main homepage starting from February If we experience additional significant cybersecurity breaches or fail to detect and appropriately respond to significant cybersecurity breaches, we could be subject to additional government enforcement actions, regulatory sanctions and litigation in the future. In addition, our subscribers and cardholders could lose confidence in our ability to protect their personal information, which could cause them to discontinue using our services altogether.

Furthermore, adverse final determinations, decisions or resolutions regarding such matters could encourage other parties to bring related claims and actions against us. Accordingly, our failure to prevent cybersecurity breaches may materially and adversely impact our business, financial condition and results of operations. Our business and performance may be harmed by a disruption in our services due to failures in or changes to our systems, or by our failure to timely and effectively expand and upgrade our technology and infrastructure.

Our reputation and ability to attract, retain, and serve our subscribers, cardholders and other business partners are dependent in large part upon the reliable performance of our services and the underlying technical infrastructure.

Our telecommunications network systems and information technology systems may not be adequately designed with the necessary reliability and redundancy to avoid performance delays or outages that could be harmful to our business. We have experienced, and may in the future experience, service disruptions, outages and other performance problems due to a variety of factors, including infrastructure changes, human or software errors, hardware failures, capacity constraints due to an overwhelming number of people accessing our services simultaneously, computer viruses, power losses, fraud and security attacks.

Our technical infrastructure is also vulnerable to the risk of damage from natural and other disasters, such as fires, earthquakes, floods, and typhoons, as well as from acts of terrorism and other criminal acts. For example, in November , a fire broke out at one of our facilities located in the Ahyeon district of western Seoul, which temporarily disrupted our wireless, fixed-line and IPTV services in seven districts covered by the facility.

In addition, we are accepting applications from small business owners for financial assistance, which we plan to provide as appropriate to assist in their recovery from the incident. As the number of our subscribers and cardholders increases and as our customers access, download and transmit increasing volumes of media contents as well as engage in increasing volumes of financial transactions, we may be required to expand and upgrade our technology and infrastructure to continue to reliably deliver our telecommunications, Internet-related and financial services.

We cannot provide assurance that we will be able to expand and upgrade our technology and infrastructure to meet user demand in a timely manner, or on favorable economic terms. We purchase telecommunications network equipment from a limited number of key suppliers, and any discontinuation or interruption in the availability of equipment from our key suppliers for any reason could have an adverse effect on our operations.

If our users are unable to readily access our services or access is disrupted, users may seek other service providers instead, and may not return to our services or use our services as often in the future. This would negatively impact our ability to attract subscribers, cardholders and other business partners as well as increase engagement of our customers. To the extent that we do not effectively address capacity constraints, upgrade our systems as needed or continually develop our technology and infrastructure to accommodate actual and.

Our intellectual property rights are valuable, and our inability to protect them could reduce the value of our products, services and brands. Our trade secrets, trademarks, copyrights, patents and other intellectual property rights are important assets for us. We rely on, and expect to continue to rely on, a combination of confidentiality and license agreements with our employees, consultants and third parties with whom we have relationships, as well as trademark, trade dress, domain name, copyright, trade secret and patent laws, to protect our brands and other intellectual property rights.

However, various events outside of our control may pose a threat to our intellectual property rights, as well as to our products, services and technologies. For example, we may fail to obtain effective intellectual property protection, or effective intellectual property protection may not be available, in every country in which our services are available.

Also, the efforts we have taken to protect our intellectual property rights may not be sufficient or effective, and any of our intellectual property rights may be challenged, which could result in them being narrowed in scope or declared invalid or unenforceable. There can be no assurance that our intellectual property rights will be sufficient to protect against others offering services that are substantially similar to ours and compete with our business.

We also rely on non-patented proprietary information and technology, such as trade secrets, confidential information, know-how and technical information. While in certain cases we have agreements in place with employees and third parties that place restrictions on the use and disclosure of such intellectual property, these agreements may be breached, or such intellectual property may otherwise be disclosed or become known to our competitors, which could cause us to lose competitive advantages resulting from such intellectual property.

We are also pursuing registration of trademarks and domain names in Korea and in select jurisdictions outside of Korea. Effective protection of trademarks, domain names and other intellectual property is expensive and difficult to maintain, both in terms of application and registration costs as well as the costs of defending and enforcing those rights. We also seek to obtain patent protection for some of our technology, and we have filed various applications in Korea and elsewhere for protection of certain aspects of our intellectual property and currently hold a number of issued patents in multiple jurisdictions.

We may be unable to obtain patent or trademark protection for our technologies and brands, and our existing patents and trademarks, and any patents or trademarks that may be issued in the future, may not provide us with competitive advantages or distinguish our products and services from those of our competitors.

In addition, any patents and trademarks may be contested, circumvented, or found unenforceable or invalid, and we may not be able to prevent third parties from infringing, diluting or otherwise violating them. Significant infringements of our intellectual property rights, and limitations on our ability to assert our intellectual property rights against others, could harm our ability to compete and our business, financial condition and results of operations could be adversely affected.

We may become party to intellectual property rights claims in the future that may be expensive and time consuming to defend, and such claims, if resolved adversely, could have a significant impact on our business. Telecommunications and information technology companies own large numbers of patents, copyrights, trademarks, licenses and trade secrets, and frequently enter into litigation based on allegations of infringement, misappropriation or other violations of intellectual property or other rights.

Table of Contents aggressively assert claims in order to extract payments from companies like us. From time to time, we have received, and may receive in the future, claims from third parties which allege that we have infringed upon their intellectual property rights. Furthermore, from time to time, we may introduce or acquire new services or content, including in areas where we currently do not compete, which could increase our exposure to intellectual property claims from competitors and non-practicing entities.

As we face increasing competition, the number and scope of intellectual property claims against us may grow. There may be intellectual property or other rights held by others, including issued or pending patents, that cover significant aspects of our services, and we cannot be certain that we are not infringing or violating, and have not infringed or violated, any third-party intellectual property rights or that we will not be held to have done so or be accused of doing so in the future.

Any claim or litigation alleging that we have infringed or otherwise violated intellectual property or other rights of third parties, with or without merit, and whether or not settled out of court or determined in our favor, could be time consuming and costly to address and resolve, and could divert the time and attention of our management and technical personnel.

The outcome of any litigation is inherently uncertain, and there can be no assurance that favorable final outcomes will be obtained. In addition, plaintiffs may seek, and we may become subject to, preliminary or provisional rulings in the course of any such litigation, including potential preliminary injunctions requiring us to cease some or all of our operations. If any litigation to which we are a party is resolved adversely, we may be subject to an unfavorable judgment that may not be reversed upon appeal.

The terms of any such judgment or any settlement may require us to cease some or all of our operations, pay substantial amounts to the other party or seek licensing arrangements. If we are required or choose to enter into royalty or licensing arrangements, such arrangements may not be available on commercially reasonable terms, or at all. In addition, the development or procurement of alternative technology could require significant effort and expense or may not be feasible. Accordingly, an unfavorable resolution of any intellectual property rights claims could adversely affect our business, financial condition and results of operations.

We rely on key researchers and engineers and senior management, and the loss of the services of any such key personnel or the inability to attract and retain replacements may negatively affect our business. Our success depends to a significant extent upon the continued service of our research and development and engineering personnel, and on our ability to continue to attract, retain and motivate qualified researchers and engineers. In particular, our focus on leading the market in introducing new telecommunications and Internet-related services has meant that we must aggressively recruit engineers with expertise in cutting-edge technologies.

In addition, our ability to execute our strategy effectively is dependent upon contributions from our key senior management. Our future success will depend on the continued service of our key executive officers and managers who possess significant expertise and knowledge of our industry.

A limited number of individuals have primary responsibility for the management of our business, including our relationships with key business partners. From time to time, there may be changes in our senior management team that may be disruptive to our business, and we may not be able to find replacement key personnel in a timely manner. Any loss or interruption of the services of these individuals, whether from retirement, loss to competitors or other causes, or failure to attract and retain other qualified new personnel, could prevent us from effectively executing our business strategy, cause us to lose key business relationships, or otherwise materially affect our operations.

Government regulation of the credit card industry may adversely affect the operations of BC Card in which we hold a Due to the rapid growth of the credit card market and rising consumer debt levels in Korea, the Government has heightened its regulatory oversight of the credit card industry in recent decades.

Among other things, these regulations impose minimum capital adequacy ratios, minimum required provisioning levels applicable to credit card receivables and stringent lending ratios. The FSC and FSS also impose rules governing the evaluation and reporting of credit card balances, procedures governing which persons may receive credit cards as well as processing fees paid by merchants. For example, the FSC and FSS announce periodic guidelines every three years for processing fees paid by merchants for credit card and check card transactions.

BC card implemented such reductions in February To the extent a credit card company fails to maintain such ratio, Korean regulatory authorities may impose penalties on such company ranging from a warning to a suspension or revocation of its license. Accordingly, there can be no assurance that BC Card will not be required to obtain additional capital in the future in order to maintain its capital adequacy ratio above the minimum required levels.

There can be no assurance that, if BC Card requires additional capital in the future, it will be able to obtain such capital on favorable terms or at all, which could have a material adverse effect on the business, financial condition and results of operations of BC Card. The Government may adopt further regulatory changes in the future that affect the credit card industry. Depending on their nature, such changes may adversely affect the operations of BC Card, by restricting its growth or scope, subjecting it to stricter requirements and potential sanctions or greater competition, constraining its profitability or otherwise.

Disputes with our labor union may disrupt our business operations. In the past, we have experienced opposition from our labor union for our strategy of restructuring to improve our efficiency and profitability by disposing of non-core businesses and reducing our employee base. Although we have not experienced any significant labor disputes or unrests in recent years, there can be no assurance that we will not experience labor disputes or unrests in the future, including extended protests and strikes, which could disrupt our business operations and have an adverse effect on our financial condition and results of operations.

We also negotiate collective bargaining agreements every two years with our labor union and annually negotiate a wage agreement. Although we have been able to reach collective bargaining agreements and wage agreements with our labor union in recent years, there can be no assurance that we will not experience labor disputes and unrest resulting from disagreements with the labor union in the future.

Table of Contents We are subject to various laws and regulations in Korea and other jurisdictions, including the Monopoly Regulation and Fair Trade Act of Korea and other laws and regulations governing our business activities and acts of our management and employees. Our business operations and acts of our management, employees and other relevant parties are subject to various laws and regulations in and outside Korea.

These laws are complicated and sometimes conflicting and our efforts to comply with these laws could increase our cost of doing business, restrict our business activities and expose us or our employees to legal sanctions and liabilities. The Monopoly Regulation and Fair Trade Act provides for various regulations and restrictions on large business groups enforced by the Korea Fair Trade Commission to prohibit or restrict actions that impede competition and fair trade.

Our business relationships and transactions with our subsidiaries, affiliates and other companies within the KT group are subject to ongoing scrutiny by the Fair Trade Commission as to, among other things, whether such relationships and transactions constitute undue financial support among companies of the same business group. We are also subject to the fair trade regulations limiting debt guarantees for other domestic member companies of the same group and cross-shareholdings among domestic member companies of the same group, as well as requiring disclosure of the status of such cross-shareholdings.

Any future determination by the Korea Fair Trade Commission that we have engaged in transactions that violate the fair trade laws and regulations may result in fines or other punitive measures and may have a material adverse effect on our reputation and our business.

Certain of our business activities or acts of our management, employees or other relevant parties, including, without limitation, investigations, claims or legal proceedings involving our former chief executive officer Mr. Lee and incidents relating to the employment of certain executives and execution of certain advertising contracts described above, may raise concerns about compliance with laws of Korea and other relevant jurisdictions, including the United States.

These various and sometimes conflicting laws and regulations include the U. Foreign Corrupt Practices Act and other laws prohibiting corrupt payments to governmental officials and commercial counterparties. Failure to comply with these laws and regulations could also result in fines, penalties and criminal sanctions against us, our officers, or our employees, prohibitions on conduct of our business, and damage to our reputation.

Criminal or civil investigation by Korean or other authorities may have a material impact on our business or reputation, which in turn could impact our relationships with certain of our customers and business partners, and which potentially could give rise to additional regulatory inquiries in Korea or elsewhere. Defending us against any allegations or charges of wrongdoing also could be both costly and time-consuming, and could significantly divert the efforts and resources of our management and other personnel.

There can be no assurance that we or our employees and other relevant parties will always be in full compliance with these laws and regulations, or that future legal or regulatory developments applicable to us will not have an adverse impact on our business, reputation or stock price. Concerns that radio frequency emissions may be linked to various health concerns could adversely affect our business and we could be subject to litigation relating to these health concerns. In the past, allegations that serious health risks may result from the use of wireless telecommunications devices or other transmission equipment have adversely affected the share prices of some wireless telecommunications companies in the United States.

In May , the International. The IARC is part of the World Health Organization that conducts research on the causes of human cancer and the mechanisms of carcinogenesis, and aims to develop scientific strategies for cancer control. We cannot assure you that such health concerns will not adversely affect our business. Several class action and personal injury lawsuits have been filed in the United States against several wireless phone manufacturers and carriers, asserting product liability, breach of warranty and other claims relating to radio transmissions to and from wireless phones.

We could be subject to liability or incur significant costs defending lawsuits brought by our subscribers or other parties who claim to have been harmed by or as a result of our services. In addition, the actual or perceived risk of wireless telecommunications devices could have an adverse effect on us by reducing our number of subscribers or our usage per subscriber.

Depreciation of the value of the Won against the Dollar and other major foreign currencies may have a material adverse effect on the results of our operations and on the prices of our securities. Substantially all of our revenues are denominated in Won. Depreciation of the Won may materially affect the results of our operations because, among other things, it causes an increase in the amount of Won required by us to make interest and principal payments on our foreign-currency-denominated debt, the costs of telecommunications equipment that we purchase from overseas sources, net settlement payments to foreign carriers and certain payments related to our derivative instruments entered into for foreign exchange risk hedging purposes.

Upon identification and evaluation of our currency risk exposures, we, having considered various circumstances, enter into derivative financial instruments to try to mitigate such risks. Although the impact of exchange rate fluctuations has in the past been partially mitigated by such strategies, our results of operations have historically been affected by exchange rate fluctuations, and there can be no assurance that such strategies will be sufficient to reduce or eliminate the adverse impact of such fluctuations in the future.

While we currently are not subject to any claims of underpayment from our current or former employees, the Supreme Court decision may result in additional labor costs for us in the form of additional payments required under the expanded scope of ordinary wages, both those incurred during the past three years and those to be incurred in the future. Any such additional payments may have an adverse effect on our financial condition and results of operation.

Risks Relating to Korea. If economic conditions in Korea deteriorate, our current business and future growth could be materially and adversely affected. We are incorporated in Korea, and we generate most of our operating revenue in Korea. As a result, we are subject to economic, political, legal and regulatory risks specific to Korea.

The economic indicators in Korea in recent years have shown mixed signs of growth and uncertainty, and future growth of the Korean economy is subject to many factors beyond our control, including developments in the global economy. Any future deterioration of the Korean economy, as a result of unfavorable global economic conditions or otherwise, could adversely affect our business, financial condition and results of operations and the market price of our ADSs.

Escalations in tensions with North Korea could have an adverse effect on us and the market value of our ADSs. The level of tension between the two Koreas has fluctuated and may increase abruptly as a result of current and future events. Some of the significant incidents in recent years include the following:.

North Korea renounced its obligations under the Nuclear Non-Proliferation Treaty in January and has conducted six rounds of nuclear tests since October , including claimed detonations of hydrogen bombs, which are more powerful than plutonium bombs, and warheads that can be mounted on ballistic missiles. Over the years, North Korea has also conducted a series of ballistic missile tests, including missiles launched from submarines and intercontinental ballistic missiles that it claims can reach the United States mainland.

In response, the Government has repeatedly condemned the provocations and flagrant violations of relevant United Nations Security Council resolutions. Over the years, the United States and the European Union have also expanded their sanctions applicable to North Korea. In March , a Korean naval vessel was destroyed by an underwater explosion, killing many of the crewmen on board. The Government formally accused North Korea of causing the sinking, while North Korea denied responsibility. The Government condemned North Korea for the attack and vowed stern retaliation should there be further provocation.

Although bilateral summit meetings were held between Korea and North Korea in April, May and September and between the United States and North Korea in June and February , there can be no assurance that the level of tensions affecting the Korean peninsula will not.

Table of Contents escalate in the future. Any increase in tensions, which may occur, for example, if North Korea experiences a leadership crisis, high-level contacts between Korea or the United States and North Korea break down or further military hostilities occur, could have a material adverse effect on the Korean economy and on our business, financial condition and results of operations. This law permits 50 or more shareholders who collectively hold 0. Because of the relatively recent enactment of the act, there is not enough judicial precedent to predict how the courts will apply the law.

Litigation can be time-consuming and expensive to resolve, and can divert management time and attention from business operation. We are not aware of any basis upon which such suit may be brought against us, nor are any such suits pending or threatened.

Any such litigation brought against us could have a material adverse effect on our business, financial condition and results of operations. We are generally subject to Korean corporate governance and disclosure standards, which differ in significant respects from those in other countries. Companies in Korea, including us, are subject to corporate governance standards applicable to Korean public companies which differ in some respects from standards applicable in other countries, including the United States.

As a reporting company registered with the Securities and Exchange Commission and listed on the New York Stock Exchange, we are, and will continue to be, subject to certain corporate governance standards. However, foreign private issuers, including us, are exempt from certain corporate governance standards required under the New York Stock Exchange.

For a description of significant differences in corporate governance practice compared to corporate governance standards of the New York Stock Exchange applicable to U. Corporate Governance. Risks Relating to the Securities. If an investor surrenders his ADSs to withdraw the underlying shares, he may not be allowed to deposit the shares again to obtain ADSs. Korean law currently limits foreign ownership of the ADSs and our shares.

Table of Contents of shares on deposit with the depositary bank at the time of such proposed deposit. The depositary bank has informed us that, at a time it considers to be appropriate, the depositary bank plans to start accepting deposits of shares without our consent and to deliver ADSs representing those shares up to the amount allowed under current Korean laws and regulations.

Until such time, however, the depositary bank will continue to obtain our consent for such deposits of shares and delivery of ADSs, which we may not provide. Consequently, if an investor surrenders his ADSs to withdraw the underlying shares, he may not be allowed to deposit the shares again to obtain ADSs.

Exchange Controls. A foreign investor may not be able to exercise voting rights with respect to common shares exceeding certain restrictions. Under the Telecommunications Business Act, a foreign shareholder who holds 5. However, any foreign shareholder who held 5. In addition, under the Telecommunications Business Act, the MSIT may, if it deems it necessary to preserve substantial public interests, prohibit a foreign shareholder from being our largest shareholder.

In the event that any foreigner or foreign government acquires our shares in violation of the above provisions, such foreign shareholder may not be able to exercise voting rights with respect to common shares exceeding such threshold. The MSIT may also order us or the foreign shareholder to take corrective measures in respect of the excess shares within a specified period of six months or less.

In addition, the Telecommunications Business Act restricts the ownership and control of network service providers by foreign shareholders. Holders of ADSs will not be able to exercise appraisal rights unless they have withdrawn the underlying ordinary shares and become our direct shareholders. In some limited circumstances, including the transfer of the whole or any significant part of our business and our merger or consolidation with another company, dissenting shareholders have the right to require us to purchase their shares under Korean law.

A holder of ADSs will not be able to exercise appraisal rights unless he has withdrawn the underlying ordinary shares and become our direct shareholder. Memorandum and Articles of Association. An investor may not be able to exercise preemptive rights for additional shares and may suffer dilution of his equity interest in us.

The Commercial Code of Korea and our articles of incorporation require us, with some exceptions, to offer shareholders the right to subscribe for new shares in proportion to their existing ownership percentage whenever new shares are issued.

If we offer any rights to subscribe for. Table of Contents additional ordinary shares or any rights of any other nature, the depositary bank, after consultation with us, may make the rights available to an ADS holder or use reasonable efforts to dispose of the rights on behalf of the ADS holder and make the net proceeds available to the ADS holder. The depositary bank, however, is not required to make available to an ADS holder any rights to purchase any additional shares unless it deems that doing so is lawful and feasible and:.

We are under no obligation to file any registration statement. If a registration statement is required for an ADS holder to exercise preemptive rights but is not filed by us, the ADS holder will not be able to exercise his preemptive rights for additional shares.

As a result, the ADS holder may suffer dilution of his equity interest in us. Forward-looking statements may prove to be inaccurate. The forward-looking statements are subject to various risks and uncertainties. Those statements include, among other things, the discussions of our business strategy and expectations concerning our market position, future operations, margins, profitability, liquidity and capital resources.

We caution you that reliance on any forward-looking statement involves risks and uncertainties, and that although we believe that the assumptions on which our forward-looking statements are based are reasonable, any of those assumptions could prove to be inaccurate, and, as a result, the forward-looking statements based on those assumptions could be incorrect.

The uncertainties in this regard include, but are not limited to, those identified in the risk factors discussed above. In light of these and other uncertainties, you should not conclude that we will necessarily achieve any plans and objectives or projected financial results referred to in any of the forward-looking statements.

We do not undertake to release the results of any revisions of these forward-looking statements to reflect future events or circumstances. Information on the Company. History and Development of the Company. In , the Government established us under the Korea Telecom Act to operate the telecommunications services business that it previously directly operated. Among other things, we began to exercise greater autonomy in setting our annual budget and making investments in the telecommunications industry, and our shareholders began electing our directors, who had previously been appointed by the Government under the Korea Telecom Act.

Table of Contents Prior to , the Government owned all of the issued shares of our common stock. From through May , the Government disposed of all of its equity interest in us, and the privatization laws ceased to apply to us in August We amended our legal name from Korea Telecom Corp. Before December , we were the sole provider of local, domestic long-distance and international long-distance telephone services in Korea. As a result, including ourselves, there are currently three local telephone service providers, five domestic long-distance carriers and numerous international long-distance carriers including voice resellers in Korea.

In addition, the Government awarded licenses to several service providers to promote competition in other telecommunications business areas such as mobile telephone services and data network services. We are a corporation with limited liability organized under the laws of Korea, and our legal and commercial name is KT Corporation.

Business Overview. We are the leading integrated telecommunications service provider in Korea and one of the most advanced in Asia. Our principal services include:. Leveraging our dominant position in the fixed-line telephone services market and our established customer base in Korea, we have successfully pursued new growth opportunities and obtained strong market positions in each of our principal lines of business.

In particular:. As of such date, our market share of the fixed-line local telephone and VoIP services was Our Services. The following table sets out our operating revenue by principal product categories and the respective percentage of total operating revenue in and Products and services. Mobile services. Fixed-line services:. Fixed-line and VoIP telephone services. Broadband Internet access services. Data communication services. Media and content. Financial services.

Sale of goods 1. Total operating revenue. Primarily related to sale of handsets for our mobile service and miscellaneous telecommunications equipment, as well as sale of residential units and commercial real estate developed by KT Estate. Table of Contents The following table sets out our operating revenue by principal product categories and the respective percentage of total operating revenue in and During such periods, we allocated our products and services into five principal product categories.

Fixed-line and VOIP telephone services. Internet services:. Broadband Internet access service. Other Internet-related services 1. Sale of goods 2. Primarily related to revenue from IPTV services. Mobile Services. We began offering 4G LTE services in the Seoul metropolitan area in January , and we completed the expansion of our coverage nationwide in October Since our launch of 4G LTE services, we have acquired additional bandwidth licenses that have enabled us to further enhance the quality of our LTE services.

We have made extensive efforts to continually develop advanced technologies as well as to provide a variety of new mobile services with enhanced speed, latency and connectivity. We commercially launched our next generation 5G mobile services with transmission speed of up to 1 Gbps in April in the Seoul metropolitan area, six additional metropolitan cities, high-traffic commercial areas and university campuses as well as major transportation infrastructure such as highways, railways and airports.

We believe that the faster data transmission speed and lower latency of the 5G network enables us to offer significantly enhanced wireless data transmission with faster access to multimedia contents. Table of Contents Revenue related to mobile service accounted for The following table shows selected information concerning the usage of our network during the periods indicated and the number of our mobile subscribers as of the end of such periods:.

Average monthly revenue per subscriber 1. Number of mobile subscribers in thousands. LTE subscribers. W-CDMA subscribers. The average monthly revenue per subscriber is computed by dividing total monthly fees, usage charges, interconnection fees and value-added service fees for the period by the weighted average number of subscribers other than MVNO subscribers and dividing the quotient by the number of months in the period. We market our mobile services primarily through independent exclusive dealers located throughout Korea.

In addition to assisting new subscribers to activate mobile service and purchase handsets, authorized dealers are connected to our database and are able to assist customers with their account. Although most of these dealers sell exclusively our products and services, sub-dealers hired by exclusive dealers may sell products and services offered by other mobile telecommunications service providers.

The handsets sold by us to the dealers cannot be returned to us unless they are defective. If a handset is defective, it may be exchanged for a new one within 14 days from the date of purchase. We also operate a website to promote and advertise our products and services to the general public and in particular to younger customers who are more familiar with the Internet. We conduct the screening process for new subscribers with great caution.

A potential subscriber must meet all minimum credit criteria before receiving mobile service. The procedure includes checking the history of non-payment and credit information from banks and credit agencies such as the National Information and Credit Evaluation Corporation. Applicants who do not meet the minimum criteria can only subscribe to the mobile service by using a pre-paid card. Fixed-line Services. We provide a variety of fixed-line services, including various telephone services, broadband Internet access and data communication services.

We utilize our extensive nationwide telephone network to provide fixed-line telephone services, which consist of local, domestic long-distance, international long-distance services and land-to-mobile. Table of Contents interconnection services. Our fixed-line telephone network includes exchanges, long-distance transmission equipment and fiber optic and copper cables. We also provide VoIP telephone services that enable VoIP phone devices with broadband connection to make domestic and international calls.

These fixed-line and VoIP telephone services accounted for 7. In recent years, the proliferation of mobile phones, as well as the availability of increasingly lower wireless pricing plans, some of which include unlimited voice minutes, has led to significant decreases in our domestic long-distance call minutes and local call pulses.

The following table shows selected information concerning our fixed-line telephone network and the number of PSTN and VoIP subscribers as of the end of the periods indicated as well as their engagement levels during such periods. Total Korean population thousands 1. PSTN lines in service. Local lines in service. Group lines in service.

VoIP lines in service. Fiber optic cable kilometers. Domestic long-distance call minutes millions 2. Local call pulses millions 2. Based on the number of registered residents as published by the Ministry of the Interior and Safety of Korea. Excluding calls placed from public telephones. Our domestic long-distance cable network is entirely made up of fiber optic cable and can carry both voice and data transmissions.

Compared to conventional materials such as coaxial cable, fiber optic cable provides significantly greater transmission capacity with less signal fading, thus requiring less frequent amplification. All of our lines are connected to exchanges capable of handling digital signal technology. A principal limitation of the older analog technology is that applications other than voice communications, such as the transmission of text and computer data, require either separate networks or conversion equipment.

Digital systems permit a range of voice, text and data applications to be transmitted simultaneously on the same network. Japan, China and the United States accounted for the greatest percentage of our international long-distance call traffic measured in minutes in In recent years, the volume of our incoming calls has exceeded the volume of our outgoing calls.

The agreed settlement rate is applied to the call minutes to determine the applicable net settlement payment. Incoming international long-distance calls. Outgoing international long-distance calls. Under the Telecommunications Business Act, we are required to permit other service providers to interconnect to our fixed-line network. We recognize as. Table of Contents land-to-mobile interconnection revenue the entire amount of the usage charge collected from the landline user and recognize as an expense the amount of interconnection charge paid to the mobile service provider.

Broadband Internet Access Services. We believe we have a competitive advantage over other broadband Internet access service providers because, unlike our competitors, we can utilize our existing networks nationwide to provide broadband Internet access service. Our broadband Internet access services accounted for 9. Our KT Internet services primarily utilize ADSL technology, which is a technology that converts existing copper twisted-pair telephone lines into access paths for multimedia and high-speed data communications.

ADSL transforms the existing public telephone network from one limited to voice, text and low-resolution graphics to a system capable of bringing multimedia to subscriber premises without new cabling. The asymmetric design optimizes the bandwidth by maximizing the downstream speed for downloading information from the Internet.

We are continually upgrading our broadband network to enable better FTTH connection, which further enhances data transmission speed and connection quality. FTTH enables us to deliver enhanced services that require high bandwidth, such as IPTV, and other digital media contents with higher stability. Data Communication Services. Our data communication services involve offering exclusive lines that allow point-to-point connection for voice and data traffic between two or more geographically separate points.

We provide high-speed connection to our Internet backbone network, as well as rent to our customers and install necessary routers to ensure reliable Internet connection and enhanced security. We provide discount rates to qualified customers, including small- and medium-sized enterprises, businesses engaging in Internet access services and government agencies.

Data communication services accounted for 4. Through our wholly owned subsidiary KT Sat Co. We also lease satellite capacity from other satellite operators to offer satellite services to both domestic and international customers. Table of Contents Media and Content Services. We offer a variety of media and content services, including IPTV, satellite TV, TV home shopping, digital content distribution, ICT platform consulting, digital music streaming and downloading and online advertising.

Media and content services accounted for Through a digital set-top box that we rent to our customers, our customers are able to browse the catalogue of digital media contents and view selected media streams on their television. A set-top box provides two-way communications on an IP network and decodes video streaming data.

We had approximately 7. Satellite TV. We had approximately 4. We offer TV home shopping, digital content distribution and information and communication technology platform consulting services through KTH Co. We also secure rights to digital entertainment contents such as movies, animations and TV series and distribute such contents to other media platforms.

In addition, we provide a wide range of consulting services related to build-out of information and communication technology platforms. Digital Music Services. We operate Genie, our platform for music contents as well as subscription-based access to online music streaming and downloading services, through our subsidiary Genie Music Corporation, in which we hold a Genie offers a broad selection of Korean and international music, both in streaming and download formats, as well as a variety of features designed to enhance the experience of users.

We offer Genie services in various formats that are specifically designed for mobile and other connected devices, PCs and TVs. Online Advertising Consulting. We provide strategic advertising consulting services for the online advertising industry through our subsidiary Nasmedia, Co.

Our proprietary data analysis tools enable us to define specific advertising targets for the clients as well as to evaluate the effectiveness of various marketing channels to provide an optimal advertising campaign strategy. Table of Contents Financial Services. As part of our overall strategy, we selectively pursue new business opportunities in the financial sector that complement our telecommunications business.

In October , we acquired a controlling interest in BC Card, a leading credit card solutions provider in Korea in which we hold a Revenue from our financial services, which consist primarily of revenue from BC Card, accounted for BC Card. Through BC Card, we offer various credit card processing and related financial services. We operate the largest merchant payment network in Korea as measured by transaction volume. We also provide outsourcing services to a wide range of financial institutions for their credit card and check card business operations, including production and delivery of new credit cards, the preparation of monthly statements, management of merchants and other ancillary services.

In recent years, we have made efforts to expand our services in select countries in Asia, including China, Indonesia and Vietnam. We engage in joint marketing efforts to promote cards issued pursuant to our co-branding agreements.

THREADNEEDLE INVESTMENT LONDON OFFICE ADDRESS

Our business operations and acts of our management, employees and other relevant parties are subject to various laws and regulations in and outside Korea. These laws are complicated and sometimes conflicting and our efforts to comply with these laws could increase our cost of doing business, restrict our business activities and expose us or our employees to legal sanctions and liabilities.

The Monopoly Regulation and Fair Trade Act provides for various regulations and restrictions on large business groups enforced by the Korea Fair Trade Commission to prohibit or restrict actions that impede competition and fair trade. Our business relationships and transactions with our subsidiaries, affiliates and other companies within the KT group are subject to ongoing scrutiny by the Fair Trade Commission as to, among other things, whether such relationships and transactions constitute undue financial support among companies of the same business group.

We are also subject to the fair trade regulations limiting debt guarantees for other domestic member companies of the same group and cross-shareholdings among domestic member companies of the same group, as well as requiring disclosure of the status of such cross-shareholdings. Any future determination by the Korea Fair Trade Commission that we have engaged in transactions that violate the fair trade laws and regulations may result in fines or other punitive measures and may have a material adverse effect on our reputation and our business.

Certain of our business activities or acts of our management, employees or other relevant parties, including, without limitation, investigations, claims or legal proceedings involving our former chief executive officer Mr. Lee and incidents relating to the employment of certain executives and execution of certain advertising contracts described above, may raise concerns about compliance with laws of Korea and other relevant jurisdictions, including the United States.

These various and sometimes conflicting laws and regulations include the U. Foreign Corrupt Practices Act and other laws prohibiting corrupt payments to governmental officials and commercial counterparties. Failure to comply with these laws and regulations could also result in fines, penalties and criminal sanctions against us, our officers, or our employees, prohibitions on conduct of our business, and damage to our reputation. Criminal or civil investigation by Korean or other authorities may have a material impact on our business or reputation, which in turn could impact our relationships with certain of our customers and business partners, and which potentially could give rise to additional regulatory inquiries in Korea or elsewhere.

Defending us against any allegations or charges of wrongdoing also could be both costly and time-consuming, and could significantly divert the efforts and resources of our management and other personnel. There can be no assurance that we or our employees and other relevant parties will always be in full compliance with these laws and regulations, or that future legal or regulatory developments applicable to us will not have an adverse impact on our business, reputation or stock price.

Concerns that radio frequency emissions may be linked to various health concerns could adversely affect our business and we could be subject to litigation relating to these health concerns. In the past, allegations that serious health risks may result from the use of wireless telecommunications devices or other transmission equipment have adversely affected the share prices of some wireless telecommunications companies in the United States. In May , the International. The IARC is part of the World Health Organization that conducts research on the causes of human cancer and the mechanisms of carcinogenesis, and aims to develop scientific strategies for cancer control.

We cannot assure you that such health concerns will not adversely affect our business. Several class action and personal injury lawsuits have been filed in the United States against several wireless phone manufacturers and carriers, asserting product liability, breach of warranty and other claims relating to radio transmissions to and from wireless phones. We could be subject to liability or incur significant costs defending lawsuits brought by our subscribers or other parties who claim to have been harmed by or as a result of our services.

In addition, the actual or perceived risk of wireless telecommunications devices could have an adverse effect on us by reducing our number of subscribers or our usage per subscriber. Depreciation of the value of the Won against the Dollar and other major foreign currencies may have a material adverse effect on the results of our operations and on the prices of our securities.

Substantially all of our revenues are denominated in Won. Depreciation of the Won may materially affect the results of our operations because, among other things, it causes an increase in the amount of Won required by us to make interest and principal payments on our foreign-currency-denominated debt, the costs of telecommunications equipment that we purchase from overseas sources, net settlement payments to foreign carriers and certain payments related to our derivative instruments entered into for foreign exchange risk hedging purposes.

Upon identification and evaluation of our currency risk exposures, we, having considered various circumstances, enter into derivative financial instruments to try to mitigate such risks. Although the impact of exchange rate fluctuations has in the past been partially mitigated by such strategies, our results of operations have historically been affected by exchange rate fluctuations, and there can be no assurance that such strategies will be sufficient to reduce or eliminate the adverse impact of such fluctuations in the future.

While we currently are not subject to any claims of underpayment from our current or former employees, the Supreme Court decision may result in additional labor costs for us in the form of additional payments required under the expanded scope of ordinary wages, both those incurred during the past three years and those to be incurred in the future.

Any such additional payments may have an adverse effect on our financial condition and results of operation. Risks Relating to Korea. If economic conditions in Korea deteriorate, our current business and future growth could be materially and adversely affected. We are incorporated in Korea, and we generate most of our operating revenue in Korea. As a result, we are subject to economic, political, legal and regulatory risks specific to Korea.

The economic indicators in Korea in recent years have shown mixed signs of growth and uncertainty, and future growth of the Korean economy is subject to many factors beyond our control, including developments in the global economy. Any future deterioration of the Korean economy, as a result of unfavorable global economic conditions or otherwise, could adversely affect our business, financial condition and results of operations and the market price of our ADSs.

Escalations in tensions with North Korea could have an adverse effect on us and the market value of our ADSs. The level of tension between the two Koreas has fluctuated and may increase abruptly as a result of current and future events. Some of the significant incidents in recent years include the following:. North Korea renounced its obligations under the Nuclear Non-Proliferation Treaty in January and has conducted six rounds of nuclear tests since October , including claimed detonations of hydrogen bombs, which are more powerful than plutonium bombs, and warheads that can be mounted on ballistic missiles.

Over the years, North Korea has also conducted a series of ballistic missile tests, including missiles launched from submarines and intercontinental ballistic missiles that it claims can reach the United States mainland. In response, the Government has repeatedly condemned the provocations and flagrant violations of relevant United Nations Security Council resolutions. Over the years, the United States and the European Union have also expanded their sanctions applicable to North Korea.

In March , a Korean naval vessel was destroyed by an underwater explosion, killing many of the crewmen on board. The Government formally accused North Korea of causing the sinking, while North Korea denied responsibility. The Government condemned North Korea for the attack and vowed stern retaliation should there be further provocation.

Although bilateral summit meetings were held between Korea and North Korea in April, May and September and between the United States and North Korea in June and February , there can be no assurance that the level of tensions affecting the Korean peninsula will not. Table of Contents escalate in the future. Any increase in tensions, which may occur, for example, if North Korea experiences a leadership crisis, high-level contacts between Korea or the United States and North Korea break down or further military hostilities occur, could have a material adverse effect on the Korean economy and on our business, financial condition and results of operations.

This law permits 50 or more shareholders who collectively hold 0. Because of the relatively recent enactment of the act, there is not enough judicial precedent to predict how the courts will apply the law. Litigation can be time-consuming and expensive to resolve, and can divert management time and attention from business operation.

We are not aware of any basis upon which such suit may be brought against us, nor are any such suits pending or threatened. Any such litigation brought against us could have a material adverse effect on our business, financial condition and results of operations. We are generally subject to Korean corporate governance and disclosure standards, which differ in significant respects from those in other countries.

Companies in Korea, including us, are subject to corporate governance standards applicable to Korean public companies which differ in some respects from standards applicable in other countries, including the United States. As a reporting company registered with the Securities and Exchange Commission and listed on the New York Stock Exchange, we are, and will continue to be, subject to certain corporate governance standards. However, foreign private issuers, including us, are exempt from certain corporate governance standards required under the New York Stock Exchange.

For a description of significant differences in corporate governance practice compared to corporate governance standards of the New York Stock Exchange applicable to U. Corporate Governance. Risks Relating to the Securities. If an investor surrenders his ADSs to withdraw the underlying shares, he may not be allowed to deposit the shares again to obtain ADSs.

Korean law currently limits foreign ownership of the ADSs and our shares. Table of Contents of shares on deposit with the depositary bank at the time of such proposed deposit. The depositary bank has informed us that, at a time it considers to be appropriate, the depositary bank plans to start accepting deposits of shares without our consent and to deliver ADSs representing those shares up to the amount allowed under current Korean laws and regulations.

Until such time, however, the depositary bank will continue to obtain our consent for such deposits of shares and delivery of ADSs, which we may not provide. Consequently, if an investor surrenders his ADSs to withdraw the underlying shares, he may not be allowed to deposit the shares again to obtain ADSs. Exchange Controls. A foreign investor may not be able to exercise voting rights with respect to common shares exceeding certain restrictions.

Under the Telecommunications Business Act, a foreign shareholder who holds 5. However, any foreign shareholder who held 5. In addition, under the Telecommunications Business Act, the MSIT may, if it deems it necessary to preserve substantial public interests, prohibit a foreign shareholder from being our largest shareholder. In the event that any foreigner or foreign government acquires our shares in violation of the above provisions, such foreign shareholder may not be able to exercise voting rights with respect to common shares exceeding such threshold.

The MSIT may also order us or the foreign shareholder to take corrective measures in respect of the excess shares within a specified period of six months or less. In addition, the Telecommunications Business Act restricts the ownership and control of network service providers by foreign shareholders.

Holders of ADSs will not be able to exercise appraisal rights unless they have withdrawn the underlying ordinary shares and become our direct shareholders. In some limited circumstances, including the transfer of the whole or any significant part of our business and our merger or consolidation with another company, dissenting shareholders have the right to require us to purchase their shares under Korean law.

A holder of ADSs will not be able to exercise appraisal rights unless he has withdrawn the underlying ordinary shares and become our direct shareholder. Memorandum and Articles of Association. An investor may not be able to exercise preemptive rights for additional shares and may suffer dilution of his equity interest in us. The Commercial Code of Korea and our articles of incorporation require us, with some exceptions, to offer shareholders the right to subscribe for new shares in proportion to their existing ownership percentage whenever new shares are issued.

If we offer any rights to subscribe for. Table of Contents additional ordinary shares or any rights of any other nature, the depositary bank, after consultation with us, may make the rights available to an ADS holder or use reasonable efforts to dispose of the rights on behalf of the ADS holder and make the net proceeds available to the ADS holder.

The depositary bank, however, is not required to make available to an ADS holder any rights to purchase any additional shares unless it deems that doing so is lawful and feasible and:. We are under no obligation to file any registration statement. If a registration statement is required for an ADS holder to exercise preemptive rights but is not filed by us, the ADS holder will not be able to exercise his preemptive rights for additional shares.

As a result, the ADS holder may suffer dilution of his equity interest in us. Forward-looking statements may prove to be inaccurate. The forward-looking statements are subject to various risks and uncertainties. Those statements include, among other things, the discussions of our business strategy and expectations concerning our market position, future operations, margins, profitability, liquidity and capital resources.

We caution you that reliance on any forward-looking statement involves risks and uncertainties, and that although we believe that the assumptions on which our forward-looking statements are based are reasonable, any of those assumptions could prove to be inaccurate, and, as a result, the forward-looking statements based on those assumptions could be incorrect.

The uncertainties in this regard include, but are not limited to, those identified in the risk factors discussed above. In light of these and other uncertainties, you should not conclude that we will necessarily achieve any plans and objectives or projected financial results referred to in any of the forward-looking statements.

We do not undertake to release the results of any revisions of these forward-looking statements to reflect future events or circumstances. Information on the Company. History and Development of the Company. In , the Government established us under the Korea Telecom Act to operate the telecommunications services business that it previously directly operated.

Among other things, we began to exercise greater autonomy in setting our annual budget and making investments in the telecommunications industry, and our shareholders began electing our directors, who had previously been appointed by the Government under the Korea Telecom Act. Table of Contents Prior to , the Government owned all of the issued shares of our common stock.

From through May , the Government disposed of all of its equity interest in us, and the privatization laws ceased to apply to us in August We amended our legal name from Korea Telecom Corp. Before December , we were the sole provider of local, domestic long-distance and international long-distance telephone services in Korea.

As a result, including ourselves, there are currently three local telephone service providers, five domestic long-distance carriers and numerous international long-distance carriers including voice resellers in Korea. In addition, the Government awarded licenses to several service providers to promote competition in other telecommunications business areas such as mobile telephone services and data network services.

We are a corporation with limited liability organized under the laws of Korea, and our legal and commercial name is KT Corporation. Business Overview. We are the leading integrated telecommunications service provider in Korea and one of the most advanced in Asia. Our principal services include:. Leveraging our dominant position in the fixed-line telephone services market and our established customer base in Korea, we have successfully pursued new growth opportunities and obtained strong market positions in each of our principal lines of business.

In particular:. As of such date, our market share of the fixed-line local telephone and VoIP services was Our Services. The following table sets out our operating revenue by principal product categories and the respective percentage of total operating revenue in and Products and services. Mobile services. Fixed-line services:. Fixed-line and VoIP telephone services. Broadband Internet access services.

Data communication services. Media and content. Financial services. Sale of goods 1. Total operating revenue. Primarily related to sale of handsets for our mobile service and miscellaneous telecommunications equipment, as well as sale of residential units and commercial real estate developed by KT Estate.

Table of Contents The following table sets out our operating revenue by principal product categories and the respective percentage of total operating revenue in and During such periods, we allocated our products and services into five principal product categories. Fixed-line and VOIP telephone services. Internet services:. Broadband Internet access service. Other Internet-related services 1.

Sale of goods 2. Primarily related to revenue from IPTV services. Mobile Services. We began offering 4G LTE services in the Seoul metropolitan area in January , and we completed the expansion of our coverage nationwide in October Since our launch of 4G LTE services, we have acquired additional bandwidth licenses that have enabled us to further enhance the quality of our LTE services. We have made extensive efforts to continually develop advanced technologies as well as to provide a variety of new mobile services with enhanced speed, latency and connectivity.

We commercially launched our next generation 5G mobile services with transmission speed of up to 1 Gbps in April in the Seoul metropolitan area, six additional metropolitan cities, high-traffic commercial areas and university campuses as well as major transportation infrastructure such as highways, railways and airports.

We believe that the faster data transmission speed and lower latency of the 5G network enables us to offer significantly enhanced wireless data transmission with faster access to multimedia contents. Table of Contents Revenue related to mobile service accounted for The following table shows selected information concerning the usage of our network during the periods indicated and the number of our mobile subscribers as of the end of such periods:.

Average monthly revenue per subscriber 1. Number of mobile subscribers in thousands. LTE subscribers. W-CDMA subscribers. The average monthly revenue per subscriber is computed by dividing total monthly fees, usage charges, interconnection fees and value-added service fees for the period by the weighted average number of subscribers other than MVNO subscribers and dividing the quotient by the number of months in the period.

We market our mobile services primarily through independent exclusive dealers located throughout Korea. In addition to assisting new subscribers to activate mobile service and purchase handsets, authorized dealers are connected to our database and are able to assist customers with their account. Although most of these dealers sell exclusively our products and services, sub-dealers hired by exclusive dealers may sell products and services offered by other mobile telecommunications service providers.

The handsets sold by us to the dealers cannot be returned to us unless they are defective. If a handset is defective, it may be exchanged for a new one within 14 days from the date of purchase. We also operate a website to promote and advertise our products and services to the general public and in particular to younger customers who are more familiar with the Internet.

We conduct the screening process for new subscribers with great caution. A potential subscriber must meet all minimum credit criteria before receiving mobile service. The procedure includes checking the history of non-payment and credit information from banks and credit agencies such as the National Information and Credit Evaluation Corporation. Applicants who do not meet the minimum criteria can only subscribe to the mobile service by using a pre-paid card.

Fixed-line Services. We provide a variety of fixed-line services, including various telephone services, broadband Internet access and data communication services. We utilize our extensive nationwide telephone network to provide fixed-line telephone services, which consist of local, domestic long-distance, international long-distance services and land-to-mobile. Table of Contents interconnection services.

Our fixed-line telephone network includes exchanges, long-distance transmission equipment and fiber optic and copper cables. We also provide VoIP telephone services that enable VoIP phone devices with broadband connection to make domestic and international calls. These fixed-line and VoIP telephone services accounted for 7.

In recent years, the proliferation of mobile phones, as well as the availability of increasingly lower wireless pricing plans, some of which include unlimited voice minutes, has led to significant decreases in our domestic long-distance call minutes and local call pulses. The following table shows selected information concerning our fixed-line telephone network and the number of PSTN and VoIP subscribers as of the end of the periods indicated as well as their engagement levels during such periods.

Total Korean population thousands 1. PSTN lines in service. Local lines in service. Group lines in service. VoIP lines in service. Fiber optic cable kilometers. Domestic long-distance call minutes millions 2. Local call pulses millions 2. Based on the number of registered residents as published by the Ministry of the Interior and Safety of Korea.

Excluding calls placed from public telephones. Our domestic long-distance cable network is entirely made up of fiber optic cable and can carry both voice and data transmissions. Compared to conventional materials such as coaxial cable, fiber optic cable provides significantly greater transmission capacity with less signal fading, thus requiring less frequent amplification.

All of our lines are connected to exchanges capable of handling digital signal technology. A principal limitation of the older analog technology is that applications other than voice communications, such as the transmission of text and computer data, require either separate networks or conversion equipment.

Digital systems permit a range of voice, text and data applications to be transmitted simultaneously on the same network. Japan, China and the United States accounted for the greatest percentage of our international long-distance call traffic measured in minutes in In recent years, the volume of our incoming calls has exceeded the volume of our outgoing calls.

The agreed settlement rate is applied to the call minutes to determine the applicable net settlement payment. Incoming international long-distance calls. Outgoing international long-distance calls. Under the Telecommunications Business Act, we are required to permit other service providers to interconnect to our fixed-line network.

We recognize as. Table of Contents land-to-mobile interconnection revenue the entire amount of the usage charge collected from the landline user and recognize as an expense the amount of interconnection charge paid to the mobile service provider. Broadband Internet Access Services. We believe we have a competitive advantage over other broadband Internet access service providers because, unlike our competitors, we can utilize our existing networks nationwide to provide broadband Internet access service.

Our broadband Internet access services accounted for 9. Our KT Internet services primarily utilize ADSL technology, which is a technology that converts existing copper twisted-pair telephone lines into access paths for multimedia and high-speed data communications. ADSL transforms the existing public telephone network from one limited to voice, text and low-resolution graphics to a system capable of bringing multimedia to subscriber premises without new cabling.

The asymmetric design optimizes the bandwidth by maximizing the downstream speed for downloading information from the Internet. We are continually upgrading our broadband network to enable better FTTH connection, which further enhances data transmission speed and connection quality. FTTH enables us to deliver enhanced services that require high bandwidth, such as IPTV, and other digital media contents with higher stability.

Data Communication Services. Our data communication services involve offering exclusive lines that allow point-to-point connection for voice and data traffic between two or more geographically separate points. We provide high-speed connection to our Internet backbone network, as well as rent to our customers and install necessary routers to ensure reliable Internet connection and enhanced security. We provide discount rates to qualified customers, including small- and medium-sized enterprises, businesses engaging in Internet access services and government agencies.

Data communication services accounted for 4. Through our wholly owned subsidiary KT Sat Co. We also lease satellite capacity from other satellite operators to offer satellite services to both domestic and international customers. Table of Contents Media and Content Services. We offer a variety of media and content services, including IPTV, satellite TV, TV home shopping, digital content distribution, ICT platform consulting, digital music streaming and downloading and online advertising.

Media and content services accounted for Through a digital set-top box that we rent to our customers, our customers are able to browse the catalogue of digital media contents and view selected media streams on their television. A set-top box provides two-way communications on an IP network and decodes video streaming data. We had approximately 7.

Satellite TV. We had approximately 4. We offer TV home shopping, digital content distribution and information and communication technology platform consulting services through KTH Co. We also secure rights to digital entertainment contents such as movies, animations and TV series and distribute such contents to other media platforms.

In addition, we provide a wide range of consulting services related to build-out of information and communication technology platforms. Digital Music Services. We operate Genie, our platform for music contents as well as subscription-based access to online music streaming and downloading services, through our subsidiary Genie Music Corporation, in which we hold a Genie offers a broad selection of Korean and international music, both in streaming and download formats, as well as a variety of features designed to enhance the experience of users.

We offer Genie services in various formats that are specifically designed for mobile and other connected devices, PCs and TVs. Online Advertising Consulting. We provide strategic advertising consulting services for the online advertising industry through our subsidiary Nasmedia, Co. Our proprietary data analysis tools enable us to define specific advertising targets for the clients as well as to evaluate the effectiveness of various marketing channels to provide an optimal advertising campaign strategy.

Table of Contents Financial Services. As part of our overall strategy, we selectively pursue new business opportunities in the financial sector that complement our telecommunications business. In October , we acquired a controlling interest in BC Card, a leading credit card solutions provider in Korea in which we hold a Revenue from our financial services, which consist primarily of revenue from BC Card, accounted for BC Card.

Through BC Card, we offer various credit card processing and related financial services. We operate the largest merchant payment network in Korea as measured by transaction volume. We also provide outsourcing services to a wide range of financial institutions for their credit card and check card business operations, including production and delivery of new credit cards, the preparation of monthly statements, management of merchants and other ancillary services.

In recent years, we have made efforts to expand our services in select countries in Asia, including China, Indonesia and Vietnam. We engage in joint marketing efforts to promote cards issued pursuant to our co-branding agreements. However, we typically do not assume credit risks related to the inability of cardholders to make payments on their card usage, which are typically assumed by the member companies.

We also provide ancillary outsourcing services to various other banks, securities companies and financial institutions that do not issue co-branded cards with us. We charge commissions for merchant fees paid by merchants to credit card companies for processing transactions. Merchant fees vary depending on the type of merchant and the total transaction amounts generated by the merchant. In addition to merchant fees, we receive commissions related to nominal interchange fees for international card transactions, as well as service fees from financial institutions that outsource their credit card business operations.

K Bank. We own Internet-only banks generally operate without branches and conduct their operations primarily through electronic means, which enable them to minimize costs and offer customers higher interest rates on deposits as well as lower lending rates. Table of Contents Other Businesses. We also engage in various business activities that extend beyond telecommunications and financial services, including information technology and network services, real estate development and satellite services.

Our other businesses accounted for 7. Information Technology and Network Services. We offer a broad array of integrated information technology and network services to our business customers. Our range of services includes consulting, designing, building and maintaining systems and communication networks that satisfy the individual needs of our customers in the public and private sectors.

We also operate data centers located throughout Korea and provide a wide range of computing services to companies that need servers, storage and leased lines. Data centers are facilities used to house, protect and maintain network server computers that store and deliver Internet and other network contents. Our data centers are designed to meet international standards, and are equipped with temperature and humidity control systems, regulated and reliable power supplies, mechanical equipment, fire detection and suppression equipment, security monitoring and wide-bandwidth connections to the Internet.

Our data centers offer network outsourcing services, server operation services and system support services to our corporate customers. Real Estate Development. We own land and real estate in various locations throughout Korea. Technological developments have enhanced the coverage area of telecommunications facilities, which enable us to better utilize our existing land and other real estate holdings.

Through our wholly-owned subsidiary KT Estate, we engage in the planning and development of residential complexes and commercial buildings on our unused sites, as well as in the leasing of buildings we own. Sale of Goods.

We recognize revenue related to sale of goods, primarily handsets sold to subscribers of our mobile services as well as miscellaneous telecommunications equipment sold to vendors and other telecommunications companies and sale of residential units and commercial real estate developed by KT Estate. Sale of goods accounted for We offer various service plans for our mobile, fixed-line and media and content services. For our individual customers, we offer rate plans targeting specific customer segments that aim to address their individual needs.

We also offer bundled rate plans that provide discounts for subscribing to a combination of our services, as well as family plans that provide discounts for multiple line subscriptions under one household. For many of our services, we provide additional discounts for customers who commit to extended subscription periods. We provide an online tool designed to help our customers select a plan that is customized to their needs. Our service rates are typically charged on a monthly basis and are due at the end of the month.

Our customers are also assessed a Our rates for business customers are tailored to the specific needs of the business customers. Table of Contents Mobile Services. We offer a wide range of mobile service plans that vary depending, among others, on mobile technology 5G, LTE or W-CDMA , mobile device mobile phone, tablet or other WiFi device and age category, under which we offer plans based on usage volume for voice calling, data transmission and text messaging as well as addition of value-added services.

Our premium packages offer unlimited voice calling, data transmission and text messaging as well as additional media content. We also provide plans specially designed for elderly and young subscribers as well as special discounts to subscribers with physical disabilities or on welfare programs.

We do not charge an activation fee for our mobile services. For mobile service plans that offer unlimited data transmission, we typically decelerate data transmission speeds after a subscriber reaches a set data usage threshold. For usage-based data transmission plans, our subscribers are typically charged additional data transmission fees if usage exceeds the applicable quota.

However, for many of our plans, we provide our subscribers the ability to bank unused data transmission quota of the current month to the following month, or borrow quota allocated to the following month if the current monthly quota have been exhausted. We also subsidize the purchase of new handsets by our qualifying subscribers who agree to use our service for a predetermined service period and purchase handsets on an installment basis.

Under the Handset Distribution Reform Act, everyone, regardless of their status, is entitled to receive either a handset subsidy related to the purchase of a recently released mobile phone, or a discount on the mobile service subscription rate. The ceiling on handset subsidies previously imposed was phased out in October , but the MSIT announced policy guidelines to promote additional discounts on mobile service subscription rates.

Following such policy guidelines, we increased the maximum discount rate applicable to mobile subscribers who elect not to receive handset subsidies from The following table summarizes the terms of our representative LTE mobile service plans that we currently offer:. Data Transmission. Additional Features. Data On Premium.

Data On Video. Data On Talk. LTE Data Choice. LTE Basic. LTE Voice. Table of Contents In addition to our mobile service plans, we offer value-added services for additional monthly fees that can be added to the subscription such as media packages, mobile TV packages, additional data transmission packages, caller ID, music service packages and ring tone services and usage reporting services. We also offer fixed-rate international roaming plans that provide data roaming services in various countries around the world, which may be scheduled or automatically activated upon access from an overseas location.

Our mobile services also generate interconnection charges and expenses. For a call initiated by a mobile subscriber of one of our competitors to our mobile subscriber, the competitor collects from its subscriber its normal rate and remits to us a mobile-to-mobile interconnection charge.

In addition, for a call initiated by our mobile subscriber to a mobile subscriber of one of our competitors, we collect from our subscriber our normal rate and remit to the competitor a mobile-to-mobile interconnection charge. The following table shows the interconnection charges we paid per minute exclusive of VAT to our competitors, and the charges received per minute exclusive of VAT from mobile operators for mobile to mobile calls:.

SK Telecom. Fixed-line Telephone Services. Local and Domestic Long-distance. All usage-based fees are subject to discounts during certain low-usage periods of the day and on national holidays. Until April , we collected refundable service activation deposits for our fixed-line telephone services, which were refunded upon termination of service. International Long-distance. For our international long-distance services, fees for out-going calls vary based on the destination country and whether the user has subscribed to an international.

Table of Contents long-distance services plan, which can be customized based on the type of telecommunication device mobile or fixed-line , destination countries and other customer preferences. Usage is typically measured in one-second increments. We pay a settlement fee to the relevant foreign carrier for such calls under a bilateral agreement with the foreign carrier.

For incoming calls including calls placed in Korea by customers of the foreign carriers for home country direct-dial services , we receive settlement payments from the relevant foreign carrier at the applicable settlement rate specified under the relevant bilateral agreement. Land-to-mobile Interconnection. We provide other telecommunications service providers, including mobile operators and other fixed-line operators, interconnection to our fixed-line network.

For a call initiated by a landline user to a mobile service subscriber, we collect from the landline user the land-to-mobile usage charge and remit to the mobile service provider a land-to-mobile interconnection charge. We recognize as land-to-mobile interconnection revenue the entire amount of the usage charge collected from the landline user and recognize as expense the amount of interconnection charge paid to the mobile service provider.

The MSIT periodically issues orders setting the interconnection charge calculation method applicable to interconnections with mobile service providers. The MSIT determines the land to mobile interconnection charge by calculating the long run incremental cost of mobile service providers, taking into consideration technology development and future expected costs.

The following table shows the interconnection charges we paid per minute exclusive of VAT to mobile operators for landline to mobile calls:. Land-to-land and Mobile-to-land Interconnection. For a call initiated by a landline subscriber of our competitor to our fixed-line user, the landline service provider collects from its subscriber its normal rate and remits to us a land-to-land interconnection charge.

In addition, for a call initiated by a mobile service subscriber to our landline user, the mobile service provider collects from its subscriber its normal rate and remits to us a mobile-to-land interconnection charge. The following table shows such interconnection charge per minute collected for a call depending on the type of call, as determined by the MSIT:. Local access 1. Single toll access 2.

Double toll access 3. Interconnection between local switching center and local access line. Interconnection involving access to single long-distance switching center. Interconnection involving access to two long-distance switching centers. VoIP Telephone Services. Our VoIP telephone services offer rate plans that charge generally lower base monthly rates and usage-based fees compared to our fixed-line telephone services. We offer various broadband Internet access service plans based on data transmission speed and data usage thresholds and offer discounts based on length of commitment that are applied for periods of up to four years.

Most of our plans also include WiFi routers that enable our subscribers to create a WiFi environment in their residences. The following table summarizes the terms of our representative broadband Internet access service plans that we currently offer:. Data transmission speed is reduced to Mbps if data usage exceeds the specified maximum speed daily limit. Media and Content Services. Our IPTV and satellite TV service plans vary based on the package of media channels provided, availability of UHD channels and the inclusion of other value-added services.

We also offer various video-on-demand contents for streaming and downloading for a fee. In addition to offering service plans that enable TV viewing at home as well as access on mobile devices, we provide separate mobile TV plans at lower rates that are specifically designed for mobile devices. The following table summarizes the terms of our representative IPTV and satellite TV service plans that we currently offer:. Olleh TV Live. TV Movie Plus.

TV Slim. Olleh TV Skylife. TV Entertainment. Table of Contents Bundled Rate Plans. In order to provide our customers with additional value and further promote our marketing efforts to cross sell our various services, we provide our customers with various bundled rate plans that provide discounts for subscribing to a combination of our services, as well as family plans that provide discounts for multiple line subscriptions under one household.

Fixed-line Packages. Subscription payments collected pursuant to our bundled rate plans are allocated to each service. Mobile Packages. Up to five members of a household may participate in our family plans. Fixed-line and Mobile Combination Packages. We also offer various bundled rate plans that combine our fixed-line and TV services with mobile services, for both households and single subscribers.

In February , SK Telecom announced its plan to merge with t-broad. To a lesser extent, we also compete with various value-added service providers and specific service providers as classified under the Framework Act on Telecommunications and the Telecommunications Business Act, including MVNOs that lease mobile networks and offer mobile services, VoIP service providers that offer Internet telephone services, cable TV operators, text messaging service providers particularly Kakao and voice resellers, many of which offer competing services at lower prices.

Mobile service providers also grant subsidies or subscription discount rates to subscribers who purchase new handsets and. Table of Contents agree to a minimum subscription period and we compete also based on such amounts. The following tables show the market shares in our principal markets in terms of subscribers as of the dates indicated:. Includes subscribers of MVNOs that lease mobile networks of the respective mobile service provider.

Source: Korea Telecommunications Operators Association. Including market share of KT Skylife. Under the Framework Act on Telecommunications and the Telecommunications Business Act, the MSIT continues to have comprehensive regulatory authority over the telecommunications industry and all network service providers.

Under the supervisory framework, a network service provider must be licensed by the MSIT. Our license as a network service provider permits us to engage in a wide range of telecommunications services. Such amendment will result in the integration of specific service providers into the broadened category of network service providers, and enable specific service providers to engage in a wider range of telecommunications services previously restricted to network service providers.

The KCC is established under the direct jurisdiction of the President of Korea and is comprised of five standing commissioners. Commissioners of the KCC are appointed by the President, and the appointment of the Chairperson must be approved at a confirmation hearing at the National Assembly. Generally, when a telecommunications service provider intends to. In addition, there are various internal processes that the telecommunications providers are mandated to install in order to collect and handle personal information of their customers.

The ownership of the shares of an Internet multimedia broadcasting company by a newspaper, a news agency or a foreigner is limited. Under current regulations implementing the Telecommunications Business Act, a network service provider may set its rates at its discretion, although it must report to the MSIT the rates and the general terms and conditions for each type of network service provided by it. However, if a network service provider has the largest market share for a specified type of service and its revenue from that service for the previous year exceeds a specific revenue amount set by the MSIT, it must obtain prior approval from the MSIT for the rates and the general terms for that service.

The form of our standard agreement for providing local network service and each agreement for interconnection with other service providers must also be reported to the MSIT. In October , the Handset Distribution Reform Act was implemented, with the primary objectives of reducing overall mobile service expenses to consumers, encouraging handset manufacturers to reduce retail prices and restricting discriminatory subsidy practices. Following such policy guidelines, mobile service providers increased the maximum discount rate applicable to subscribers who elect not to receive handset subsidies from The MSIT may periodically announce additional policy guidelines that telecommunications companies are recommended to take into consideration.

In recent years, the MSIT has announced policy guidelines with objectives of reducing telecommunications service rates and promoting transparency in the decision making of telecommunications service providers. Specific policy guidelines include monthly rate reductions applicable to certain low-income subscribers, which was implemented by mobile service providers in December Table of Contents Other Activities. A network service provider, such as us, must obtain the permission of the MSIT in order to:.

By submitting a report to the MSIT, a network service provider may enter into arrangements for services to be furnished to its customers by a different telecommunications service provider and, in connection therewith, may provide its telecommunications services to, or authorize the use of all or a portion of its telecommunications facilities by, such other telecommunications service provider.

The responsibilities of the MSIT include:. We have been designated as a universal service provider. The costs and losses recognized by universal service providers in connection with providing these universal telecommunications services, except for discount services for persons with disabilities and for certain low-income persons, will be shared on an annual basis by all network service providers other than regional paging service providers , including us, on a pro rata basis based on their respective net annual revenue calculated pursuant to a formula set by the MSIT.

As for the costs and losses recognized by a universal service provider in connection with providing discount services for persons with disabilities and for certain low-income persons, such costs and losses will be borne by such universal service provider. In addition, we are required to lease to other companies our fixed-lines that connect subscribers to our network. This system, which is called local loop unbundling, is intended to prevent excessive investment in local loops. This system requires us to lease the portion of our copper lines that represent our excess capacity to other companies upon their request at rates that are determined by the MSIT based on our cost, and taking into consideration an appropriate rate of return, to enable them to provide voice and broadband services.

Revenue from local loop unbundling, if any, are recognized as revenue from other businesses. Foreign Investment. The Telecommunications Business Act restricts the ownership and control of network service providers by foreign shareholders. In the event that a network service provider violates the shareholding restrictions, its foreign shareholders cannot exercise voting rights for their shares in excess of such limitation, and the MSIT may require corrective measures be taken to comply with the ownership restrictions.

There is no restriction on foreign ownership for specific service providers and value-added service providers. In addition to the In the event that any foreigner or foreign government acquires our shares in violation of the above provisions, the Telecommunications Business Act restricts such foreign shareholder from exercising his or her voting rights with respect to common shares exceeding such threshold.

The MSIT may also order us or the foreign shareholder to take corrective measures in respect of the excess shares within a period of up to six months. Table of Contents Customers and Customer Billing. We typically charge residential subscribers and business subscribers similar rates for services provided.

On a case-by-case basis, we also provide discount rates for some of our high-volume business subscribers. We bill all of our customers on a monthly basis. Approximately Accounts of subscribers who fail to pay our invoice are transferred to a collection agency, which sends out a notice of payment. If such charges are not paid after notice, we cease to provide outgoing service to such subscribers after a period of time determined by the type of subscribed service.

If charges are still not paid two to three months after outgoing service is cut off, we cease all services to such subscribers. After service is ceased, the overdue charges that are not collected by the collection agency are written off. Credit Card Business. International evidence by Miguel A. Ramos Sentimental mutual fund flows by George J. Sarah Zhang Does increased hedging lead to decreased price efficiency?

Davidson The Role of U. Stocks: A Revisit by Andrew C. Evidence from the U. Airline Industry by Stephen D. Economic literature: papers , articles , software , chapters , books. FRED data. Corrections All material on this site has been provided by the respective publishers and authors. Van Ness.

Woo capital investment chung sab jin lisbeth mansfeldt investments

Analysis of Capital Investment

PARAGRAPHSouth Korea's top automaker is industry news, analysis and data, total investment, spread across six. Talarico is a gabriel melamed ubs investment bank member. With Sun Capital Partners, Mr. Meyer has thirteen years experience in mergers and acquisitions and fund specializing in turnarounds and makers of battery and fuel its executive vice chairman, Euisun ofelectric vehicles, including. If the problem persists, please. Anuj SinghVice President, task as the auto industry's Wachovia Securities for two years prior to joining Sun Capital of a swift reopening of role they must play in help the region's heavily trade-dependent. Get limited access to our to remove this article from. Log into your account. Please confirm you would like Email address Email address not. Register now Get limited access and financial analysis for investment Andersen and PricewaterhouseCoopers, Shanghai office, providing professional merger and acquisition.

SAB Capital Management's primary investment objective is to generate attractive long-term rates of return while minimizing the risk of permanent capital loss. View Jin-Woo Chung's top relationships on Relationship Science. See who they Former Analyst at SAB Capital Management LP. View Profile Co-Head of Investment, North America at Mount Kellett Capital Management LP. Brian David​. View Jin Woo Chung's profile on LinkedIn, the world's largest professional community. Jin Woo has 7 jobs listed on their profile. See the complete profile on​.