KT CORP

6-K 1 d31730d6k.htm FORM 6-K Form 6-K

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SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 6-K

REPORT OF FOREIGN PRIVATE ISSUER

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

THE SECURITIES EXCHANGE ACT OF 1934

For the month of June 2025

Commission File Number 1-14926

KT Corporation

(Translation of registrants name into English)

90, Buljeong-ro,

Bundang-gu, Seongnam-si,

Gyeonggi-do,

Korea

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

Form 20-F ☒ Form 40-F ☐

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SIGNATURES

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

Dated: June 17, 2025
KT Corporation
By:	/s/ Youngkyoon Yun
Name: Youngkyoon Yun
Title: Vice President
By:	/s/ Sanghyun Cho
Name: Sanghyun Cho
Title: Director

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KT Corporation and Subsidiaries

Consolidated Interim Financial Statements

March 31, 2025 and 2024, and December 31, 2024

ATTACHMENT: INDEPENDENT AUDITORS REVIEW REPORT

KT Corporation

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KT Corporation and Its Subsidiaries

Index

March 31, 2025 and 2024, and December 31, 2024

	Page(s)
Report on Review of Consolidated Interim Financial Statements	1 2
Consolidated Interim Financial Statements
Consolidated Interim Statements of Financial Position	3 4
Consolidated Interim Statements of Profit or Loss	5
Consolidated Interim Statements of Comprehensive Income	6
Consolidated Interim Statements of Changes in Equity	7 8
Consolidated Interim Statements of Cash Flows	9 10
Notes to the Consolidated Interim Financial Statements	11 71

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Deloitte Anjin LLC 9F., One IFC, 10, Gukjegeumyung-ro, Youngdeungpo-gu, Seoul 07326, Korea Tel: +82 (2) 6676 1000 Fax: +82 (2) 6674 2114 www.deloitteanjin.co.kr

Independent Auditors Review Report

[English Translation of Independent Auditors Review Report Originally Issued in Korean on May 15, 2025]

To the Shareholders and the Board of Directors of KT Corporation.

Reviewed Consolidated Interim Financial Statements

We have reviewed the accompanying consolidated interim financial statements of KT Corporation and its subsidiaries (the Group). The consolidated interim financial statements consist of the consolidated statement of financial position as of March 31, 2025, and the related consolidated interim statements of profit or loss, comprehensive income, changes in equity and cash flows for the three-month periods ended March 31, 2025 and 2024, all expressed in Korean won, and a summary of material accounting policy information and other explanatory notes.

Managements Responsibility for the Consolidated Interim Financial Statements

Management is responsible for the preparation and fair presentation of these consolidated interim financial statements in accordance with Korean International Financial Reporting Standards (K-IFRS) No. 1034 Interim Financial Reporting, and for such internal control as management determines is necessary to enable the preparation of consolidated interim financial statements that are free from material misstatement, whether due to fraud or error.

Auditors Responsibility

Our responsibility is to express a conclusion on these consolidated interim financial statements based on our reviews.

We conducted our reviews in accordance with the Review Standards for Quarterly and Semi-annual Financial Statements established by the Securities and Futures Commission of the Republic of Korea. A review of consolidated interim financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Korean Standards on Auditing (KSA) and consequently, does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (DTTL), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as Deloitte Global) does not provide services to clients. Please see www.deloitte.com/kr/about to learn more about our global network of member firms.

Deloitte Touche Tohmatsu Limited is a private company limited by guarantee incorporated in England & Wales under company number 07271800, and its registered office is Hill House, 1 Little New Street, London, EC4a, 3TR, United Kingdom.

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Conclusion

Based on our reviews, nothing has come to our attention that causes us to believe that the accompanying consolidated interim financial statements referred to above do not present fairly, in all material respects, the financial position as of March 31, 2025, and its financial performance and its cash flows for the three-month periods ended March 31, 2025 in accordance with K-IFRS No.1034 Interim Financial Reporting.

Other Matters

We have audited the consolidated statement of financial position as of December 31, 2024, and the related consolidated statement of profit or loss, comprehensive income, changes in equity and cash flows for the year then ended, which do not accompany this report, in accordance with KSA. We expressed an unqualified opinion on those consolidated financial statements in our audit report dated March 13, 2025. The accompanying consolidated statement of financial position as of December 31, 2024, presented for comparative purposes, is not different from the audited consolidated statement of financial position above in all material respects.

Seoul, Korea

May 15, 2025

Notice to Readers

This review report is effective as of May 15, 2025, the auditors review report date. Certain subsequent events or circumstances may have occurred between the auditors review report date and the time the auditors review report is read. Such events or circumstances could significantly affect the financial statements and may result in modifications to the auditors review report.

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KT Corporation and Its Subsidiaries

Consolidated Interim Statements of Financial Position

As of March 31, 2025 and December 31, 2024

(In millions of Korean won)		March 31, 2025		December 31, 2024
Assets
Current Assets
Cash and cash equivalents	4,29	W	3,132,996	W	3,716,680
Trade and other receivables, net	4,5,29		6,612,026		6,147,456
Other financial assets	4,6,29		1,482,864		1,344,248
Current tax assets			1,521		1,213
Inventories, net	7		853,884		940,209
Other current assets	8		2,375,209		2,102,131
Total Current Assets			14,458,500		14,251,937
Non-Current Assets
Trade and other receivables, net	4,5,29		1,672,939		1,540,727
Other financial assets	4,6,29		2,764,004		2,759,170
Property and equipment, net	9		14,398,140		14,825,814
Right-of-use assets	16		1,211,874		1,212,770
Investment properties, net	9		2,853,395		2,299,616
Intangible assets, net	9		1,795,987		1,862,740
Investments in associates and joint ventures	10		1,567,381		1,562,232
Deferred tax assets			646,994		671,609
Net defined benefit assets	14		30,179		49,351
Other non-current assets	8		786,223		843,991
Total Non-Current Assets			27,727,116		27,628,020
Total Assets		W	42,185,616	W	41,879,957

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KT Corporation and Its Subsidiaries

Consolidated Interim Statements of Financial Position

As of March 31, 2025 and December 31, 2024

(In millions of Korean won)		March 31, 2025
Liabilities
Current Liabilities
Trade and other payables	4,11,29	W	6,952,539	W	7,394,791
Borrowings	4,12,29		3,649,089		3,904,752
Other financial liabilities	4,6,29		351,365		351,632
Current tax liabilities			216,320		123,145
Other provisions	13,15		114,446		112,530
Deferred income	19		61,698		62,247
Other current liabilities	4,8,16		1,789,130		1,925,637
Total Current Liabilities			13,134,587		13,874,734
Non-Current Liabilities
Trade and other payables	4,11,29		372,399		578,409
Borrowings	4,12,29		7,520,456		6,615,938
Other financial liabilities	4,6,29		725,976		722,517
Net defined benefit liabilities	14		181,693		128,457
Other provisions	13,15		111,675		111,877
Deferred income	19		148,518		148,960
Deferred tax liabilities			873,685		919,996
Other non-current liabilities	4,8,16		778,306		782,520
Total Non-Current Liabilities			10,712,708		10,008,674
Total Liabilities			23,847,295		23,883,408
Equity Attribute to Owners of the Controlling Company
Share capital			1,564,499		1,564,499
Share premium			1,440,258		1,440,258
Retained earnings	17		14,197,443		13,779,776
Accumulated other comprehensive income			79,191		63,729
Other components of equity	18		(676,839	)	(637,560	)
			16,604,552		16,210,702
Non-Controlling Interest			1,733,769		1,785,847
Total Equity			18,338,321		17,996,549
Total Liabilities and Equity		W	42,185,616	W	41,879,957

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

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KT Corporation and Its Subsidiaries

Consolidated Interim Statements of Profit or Loss

For the three-month periods ended March 31, 2025 and 2024

(In millions of Korean won, except per share amounts)	Notes	Three-Month Periods Ended March 31 — 2025		2024
Operating Revenue	19,27	W	6,845,117	W	6,654,574
Operating Expenses	20		6,156,346		6,148,074
Operating Profit	27		688,771		506,500
Other income	21		65,362		72,838
Other expenses	21		37,810		70,372
Finance income	22		128,094		250,276
Finance costs	22		124,359		240,492
Share of net profits (losses) of associates and joint ventures	10		(8,228	)	10,238
Profit before Income Tax			711,830		528,988
Income tax expense	23		145,031		135,985
Profit for the Period		W	566,799	W	393,003
Profit for the Period Attributable to:
Owners of the Parent Company		W	539,839	W	375,530
Non-controlling interests			26,960		17,473
Earnings per share attributable to the equity holders of the Parent Company during the period
(in Korean won):
Basic earnings per share	24	W	2,196	W	1,524
Diluted earnings per share	24		2,194		1,523

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

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KT Corporation and Its Subsidiaries

Consolidated Interim Statements of Comprehensive Income

For the three-month periods ended March 31, 2025 and 2024

(In millions of Korean won)	Notes	Three-Month Periods Ended March 31 — 2025		2024
Profit for the period		W	566,799	W	393,003
Other comprehensive income (loss)
Items that will not be reclassified to profit or loss:
Remeasurements of the net defined benefit liabilities	14		(3,862	)	603
Share of remeasurement of the net defined benefit liabilities of associates and joint
ventures			144		(95	)
Valuation gains (losses) on equity instruments at fair value through other comprehensive
income	6		(6,672	)	113,455
Items that are or may be subsequently reclassified to profit or loss:
Valuation gains on cash flow hedges	6		13,823		82,753
Other comprehensive income from cash flow hedges reclassified to profit or loss			1,040		(86,721	)
Share of other comprehensive income of associates and joint ventures			781		614
Exchange differences on translation of foreign operations			1,732		45,726
Other comprehensive income (loss) for the period, net of tax			6,986		156,335
Total comprehensive income for the period		W	573,785	W	549,338
Total comprehensive income for the period attributable to:
Owners of the Parent Company		W	556,022	W	507,543
Non-controlling interests			17,763		41,795

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

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KT Corporation and Its Subsidiaries

Consolidated Interim Statements of Changes in Equity

For the three-month periods ended March 31, 2025 and 2024

(In millions of Korean won)	Notes	Attributable to owners of the Parent Company — Share capital		Share premium		Retained earnings		Accumulated other comprehensive income		Other components of equity			Total		Non controlling interest		Total Equity
Balance as of January 1, 2024		W	1,564,499	W	1,440,258	W	14,494,430	W	52,407	W	(802,418	)	W	16,749,176	W	1,811,961	W	18,561,137
Comprehensive income
Profit for the period							375,530							375,530		17,473		393,003
Remeasurements of net defined benefit liabilities	14						1,685							1,685		(1,082	)	603
Share of remeasurement of the net defined benefit liabilities of associates and joint
ventures							(81	)						(81	)	(14	)	(95	)
Share of other comprehensive income of associates and joint ventures									580					580		34		614
Valuation gains (losses) on cash flow hedges	6								(4,126	)				(4,126	)	158		(3,968	)
Valuation gains on financial instruments at fair value through other comprehensive
income	6						(21	)	113,247					113,226		229		113,455
Exchange differences on translation of foreign operations									20,729					20,729		24,997		45,726
Total comprehensive income for the period							377,113		130,430					507,543		41,795		549,338
Transactions with owners
Dividends paid by the Parent Company							(482,970	)						(482,970	)			(482,970	)
Dividends paid to non-controlling interest of
subsidiaries																(20,600	)	(20,600	)
Change in ownership interests in subsidiaries											291			291		(811	)	(520	)
Acquisition of treasury stock											(27,100	)		(27,100	)			(27,100	)
Retirement of treasury stocks							(27,100	)			27,100
Others											4,695			4,695		(1,811	)	2,884
Subtotal							(510,070	)			4,986			(505,084	)	(23,222	)	(528,306	)
Balance as at March 31, 2024		W	1,564,499	W	1,440,258	W	14,361,473	W	182,837	W	(797,432	)	W	16,751,635	W	1,830,534	W	18,582,169

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KT Corporation and Its Subsidiaries

Consolidated Interim Statements of Changes in Equity

For the three-month periods ended March 31, 2025 and 2024

(In millions of Korean won)	Notes	Attributable to owners of the Parent Company — Share capital		Share premium		Retained earnings		Accumulated other comprehensive income		Other components of equity			Total		Non controlling interest		Total Equity
Balance as of January 1, 2025		W	1,564,499	W	1,440,258	W	13,779,776	W	63,729	W	(637,560	)	W	16,210,702	W	1,785,847	W	17,996,549
Comprehensive income
Profit for the period							539,839							539,839		26,960		566,799
Remeasurements of net defined benefit liabilities	14						(521	)						(521	)	(3,341	)	(3,862	)
Share of remeasurement of the net defined benefit liabilities of associates and joint
ventures							153							153		(9	)	144
Share of other comprehensive income of associates and joint ventures									385					385		396		781
Valuation gains (losses) on cash flow hedges	6								14,942					14,942		(79	)	14,863
Valuation gains on financial instruments at fair value through other comprehensive
income	6						1,089		(7,331	)				(6,242	)	(430	)	(6,672	)
Exchange differences on translation of foreign operations									7,466					7,466		(5,734	)	1,732
Total comprehensive income for the period							540,560		15,462					556,022		17,763		573,785
Transactions with owners
Dividends paid by the Parent Company							(122,836	)						(122,836	)			(122,836	)
Dividends paid to non-controlling interest of
subsidiaries																(18,572	)	(18,572	)
Change in Consolidation Scope																(43,143	)	(43,143	)
Change in ownership interests in subsidiaries											5,015			5,015		(6,464	)	(1,449	)
Appropriations of loss on disposal of treasury stock							(57	)			57
Acquisition of treasury stock											(47,197	)		(47,197	)			(47,197	)
Others											2,846			2,846		(1,662	)	1,184
Subtotal							(122,893	)			(39,279	)		(162,172	)	(69,841	)	(232,013	)
Balance as of March 31, 2025		W	1,564,499	W	1,440,258	W	14,197,443	W	79,191	W	(676,839	)	W	16,604,552	W	1,733,769	W	18,338,321

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

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KT Corporation and Its Subsidiaries

Consolidated Interim Statements of Cash Flows

For the three-month periods ended March 31, 2025 and 2024

(In millions of Korean won)	Notes	Three-Month Periods Ended March 31 — 2025			2024
Cash flows from operating activities
Cash generated from operations	25	W	728,367		W	1,169,061
Interest paid			(126,472	)		(122,818	)
Interest received			84,085			92,869
Dividends received			3,410			2,585
Income tax paid			(59,141	)		(27,430	)
Net cash inflow from operating activities			630,249			1,114,267
Cash flows from investing activities
Collection of loans			11,276			9,512
Disposals of financial assets at fair value through profit or loss			47,939			36,777
Disposals of financial assets at amortized cost			129,949			507,212
Disposals of financial assets at fair value through other comprehensive income			142			1,631
Disposals of investments in associates and joint ventures			10,599			2,100
Disposals of property, equipment and investment properties			28,709			21,068
Disposals of intangible assets			2,312			1,514
Disposals of right-of-use assets			45			76
Disposals of derivatives			4,256
Increase in cash due to consolidation scope change			74,237
Loans granted			(14,107	)		(6,711	)
Acquisitions of financial assets at fair value through profit or loss			(15,388	)		(73,496	)
Acquisitions of financial assets at amortized cost			(310,686	)		(293,822	)
Acquisitions of investments in associates and joint ventures			(12,630	)		(6,700	)
Acquisitions of property and equipment and investment properties			(1,373,759	)		(563,704	)
Acquisitions of intangible assets			(304,937	)		(308,426	)
Acquisitions of right-of-use assets			(45	)		(2,544	)
Net cash outflow from investing activities		W	(1,722,088	)	W	(675,513	)

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KT CORPORATION and ITS SUBSIDIARIES

Consolidated Interim Statements of Cash Flows

For the three-month periods ended March 31, 2025 and 2024

(In millions of Korean won)	Three-Month Periods Ended March 31 — 2025		2024
Cash flows from financing activities
Proceeds from borrowings	W	2,719,681	W	866,617
Cash inflow from transactions with non-controlling shareholders		1,699		200
Cash inflow from other financing activities		12,711		66
Repayments of borrowings		(2,072,728	)	(1,061,640	)
Dividends paid				(15	)
Decrease in finance lease liabilities		(97,790	)	(97,006	)
Cash outflow from derivatives contracts		(3,724	)
Acquisition of treasury stock		(47,197	)	(27,100	)
Cash outflow from transactions with non-controlling shareholders		(3,633	)	(520	)
Cash outflow from other financing activities		(425	)	(36	)
Net cash outflow from financing activities		508,594		(319,434	)
Effect of exchange rate change on cash and cash equivalents		(439	)	1,813
Net increase (decrease) in cash and cash equivalents		(583,684	)	121,133
Cash and cash equivalents
Beginning of the period		3,716,680		2,879,554
End of the period	W	3,132,996	W	3,000,687

The above consolidated interim statements of cash flows should be read in conjunction with the accompanying notes.

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KT Corporation and Its Subsidiaries

Notes to the Consolidated Interim Financial Statements

As of March 31, 2025 and 2024, and December 31, 2024

General Information

The consolidated financial statements have been prepared by KT Corporation, the Controlling Company as defined under Korean IFRS 1110 Consolidated Financial Statements , by consolidating 80 subsidiaries (collectively referred to as the Group) including BC Card Co., Ltd., etc. as described in Note 1.2

1.1 The Controlling Company

KT Corporation (the Controlling Company) commenced operations on January 1, 1982, when it spun off from the Korea Communications Commission (formerly the Korean Ministry of Information and Communications) to provide telecommunication services and to engage in the development of advanced communications services under the Act of Telecommunications of Korea. The address of the Controlling Companys registered office is 90, Buljeong-ro, Bundang-gu, Seongnam City, Gyeonggi Province, Korea.

On October 1, 1997, upon the announcement of the Government-Investment Enterprises Management Basic Act and the Privatization Law, the Controlling Company became a government-funded institution under the Commercial Code of Korea.

On December 23, 1998, the Controlling Companys shares were listed on the Korea Exchange.

On May 29, 1999, the Controlling Company issued 24,282,195 additional shares and issued American Depository Shares (ADS), which represents new shares and 20,813,311 government-owned shares, on the New York Stock Exchange. On July 2, 2001, additional ADS representing 55,502,161 government-owned shares were issued on the New York Stock Exchange.

In 2002, the Controlling Company acquired all government-owned shares in accordance with the Korean governments privatization plan. As of March 31, 2025, the Korean government does not own any shares in the Controlling Company.

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KT Corporation and Its Subsidiaries

Notes to the Consolidated Interim Financial Statements

As of March 31, 2025 and 2024, and December 31, 2024

1.2 Consolidated Subsidiaries

(1) The consolidated subsidiaries as of March 31, 2025 and December 31, 2024, are as follows:

Subsidiary	Type of business	Location	Controlling Interest 1 (%) — March 31, 2025	December 31, 2024	Closing month
KT Telecop Co., Ltd.	Security service	Korea	92.7 %	92.7 %	December
KT Alpha Co., Ltd. 4	Data communication	Korea	73.0 %	73.0 %	December
KT Service Bukbu Co., Ltd	Opening services of fixed line	Korea	67.3 %	67.3 %	December
KT Service Nambu Co., Ltd. 4	Opening services of fixed line	Korea	95.9 %	77.3 %	December
KT Commerce Inc.	B2C, B2B service	Korea	100.0 %	100.0 %	December
KT Strategic Investment Fund No.3	Investment fund	Korea	100.0 %	100.0 %	December
KT Strategic Investment Fund No.4	Investment fund	Korea	100.0 %	100.0 %	December
KT Strategic Investment Fund No.5	Investment fund	Korea	100.0 %	100.0 %	December
BC-VP Strategic Investment Fund No.1	Investment fund	Korea	100.0 %	100.0 %	December
BC Card Co., Ltd.	Credit card business	Korea	69.5 %	69.5 %	December
VP Inc. 4	Payment security service for credit card, others	Korea	72.2 %	72.2 %	December
H&C Network	Call center for financial sectors	Korea	100.0 %	100.0 %	December
BC Card China Co., Ltd.	Software development and data processing	China	100.0 %	100.0 %	December
Smartro Co., Ltd.	VAN (Value Added Network) business	Korea	64.5 %	64.5 %	December
KTDS Co., Ltd. 4	System integration and maintenance	Korea	91.6 %	91.6 %	December
KT M&S Co., Ltd.	PCS distribution	Korea	100.0 %	100.0 %	December
KT GENIE Music Corporation (formerly. GENIE Music Corporation) 2,	Online music production and distribution	Korea	36.0 %	36.0 %	December
KT MOS Bukbu Co., Ltd. 4	Telecommunication facility maintenance	Korea	100.0 %	100.0 %	December
KT MOS Nambu Co., Ltd. 4	Telecommunication facility maintenance	Korea	98.4 %	98.4 %	December
KT Skylife Co., Ltd 4	Satellite TV	Korea	50.5 %	50.5 %	December
KT ENA Co., Ltd (formerly. Skylife TV Co., Ltd.)	TV contents provider	Korea	100.0 %	100.0 %	December
KT Estate Inc.	Residential building development and supply	Korea	100.0 %	100.0 %	December
KT Investment Management Inc.	Asset management, real estate, and consulting services	Korea	100.0 %	100.0 %	December
KTGDH Co., Ltd.	Data center development and related service	Korea	100.0 %	100.0 %	December
KT Sat Co., Ltd.	Satellite communication business	Korea	100.0 %	100.0 %	December
kt Nasmedia, Co., Ltd. (formerly. Nasmedia, Co., Ltd.) 2,4	Solution provider and IPTV advertisement sales business	Korea	44.1 %	44.1 %	December
KT Sports Co., Ltd.	Management of sports teams	Korea	100.0 %	100.0 %	December
KTCS Corporation 2,4	Database and online information provider	Korea	34.1 %	34.1 %	December
KTIS Corporation 2,4	Database and online information provider	Korea	33.3 %	33.3 %	December
KT M Mobile Co., Ltd.	Special category telecommunications operator and sales of communication device	Korea	100.0 %	100.0 %	December
KT Investment Co., Ltd.	Financing business for new technology	Korea	100.0 %	100.0 %	December
PlayD Co., Ltd.	Advertising agency	Korea	70.4 %	70.4 %	December

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KT Corporation and Its Subsidiaries

Notes to the Consolidated Interim Financial Statements

As of March 31, 2025 and 2024, and December 31, 2024

Subsidiary	Type of business	Location	Controlling Interest 1 (%) — March 31, 2025	December 31, 2024	Closing month
Next Connect PFV	Residential building development and supply	Korea	100.0 %	100.0 %	December
KT Rwanda Networks Ltd.	Network installc management	Rwanda	51.0 %	51.0 %	December
AOS Ltd.	System integration and maintenance	Rwanda	51.0 %	51.0 %	December
KT Japan Co., Ltd.	Foreign investment business and local counter work	Japan	100.0 %	100.0 %	December
East Telecom LLC	Wireless/fixed line internet business	Uzbekistan	91.6 %	91.6 %	December
KT America, Inc.	Foreign investment business and local counter work	USA	100.0 %	100.0 %	December
PT. BC Card Asia Pacific	Software development and supply	Indonesia	99.9 %	99.9 %	December
KT Hongkong Telecommunications Co., Ltd.	Fixed line telecommunication business	Hong Kong	100.0 %	100.0 %	December
Korea Telecom Singapore Pte. Ltd.	Foreign investment business and local counter work	Singapore	100.0 %	100.0 %	December
Texnoprosistem LLC	Fixed line internet business	Uzbekistan	100.0 %	100.0 %	December
Nasmedia Thailand Co., Ltd.	Internet advertising solution	Thailand	99.9 %	99.9 %	December
KT Huimangjieum	Manufacturing	Korea	100.0 %	100.0 %	December
K-REALTY RENTAL HOUSING REIT 3	Residential building	Korea	88.6 %	88.6 %	December
Storywiz Co., Ltd.	Contents and software development and supply	Korea	100.0 %	100.0 %	December
KT Engineering Co., Ltd.	Telecommunication facility construction and maintenance	Korea	100.0 %	100.0 %	December
KT Studio Genie Co., Ltd.	Data communication service and data communication construction business	Korea	90.9 %	90.9 %	December
KHS Corporation	Operation and maintenance of facilities	Korea	100.0 %	100.0 %	December
kt HCN Co., Ltd. (formerly. HCN Co., Ltd.)	Cable television service	Korea	100.0 %	100.0 %	December
kt Millie Seojae (formerly. Millie Seojae) 2	Book contents service	Korea	38.7 %	38.7 %	December
KT ES Pte. Ltd.	Foreign investment business	Singapore	68.8 %	68.8 %	December
Epsilon Global Communications PTE. Ltd.	Network service industry	Singapore	100.0 %	100.0 %	December
Epsilon Telecommunications (SP) PTE. Ltd.	Fixed line telecommunication business	Singapore	100.0 %	100.0 %	December
Epsilon Telecommunications (US) PTE. Ltd.	Fixed line telecommunication business	Singapore	100.0 %	100.0 %	December
Epsilon Telecommunications Limited	Fixed line telecommunication business	UK	100.0 %	100.0 %	December
Epsilon Telecommunications (HK) Limited	Fixed line telecommunication business	Hong Kong	100.0 %	100.0 %	December
Epsilon US Inc.	Fixed line telecommunication business	USA	100.0 %	100.0 %	December
Epsilon Telecommunications (BG) EOOD	Employee support service	Bulgaria	100.0 %	100.0 %	December
Nasmedia-KT Alpha Future Growth Strategic Investment Fund	Investment fund	Korea	100.0 %	100.0 %	December
KT Strategic Investment Fund 6	Investment fund	Korea	100.0 %	100.0 %	December
Altimedia Corporation	Software development and delivery	Korea	100.0 %	100.0 %	December
Altimidia B.V.	Software development and delivery	Netherlands	100.0 %	100.0 %	December
Altimidia Vietnam	Software development and delivery	Vietnam	100.0 %	100.0 %	December

Table of Contents

KT Corporation and Its Subsidiaries

Notes to the Consolidated Interim Financial Statements

As of March 31, 2025 and 2024, and December 31, 2024

Subsidiary	Type of business	Location	Controlling Interest 1 (%) — March 31, 2025	December 31, 2024	Closing month
BCCARD VIETNAM LTD.	Software sales business	Vietnam	100.0 %	100.0 %	December
KTP SERVICES INC.	Fixed line telecommunication business	Philippines	100.0 %	100.0 %	December
KT RUS LLC	Foreign investment business	Russia	100.0 %	100.0 %	December
Hangang Real Estate Investment Trust No. 24	Investment fund	Korea	75.0 %	75.0 %	December
KT DX VIETNAM COMPANY LIMITED	Software development	Vietnam	100.0 %	100.0 %	December
kt Cloud Co., Ltd.	Information and communications development	Korea	92.7 %	92.7 %	December
PT CRANIUM ROYAL ADITAMA	Software development	Indonesia	67.0 %	67.0 %	December
Open cloud lab Co., Ltd	IT consulting service and Telecommunication equipment sales	Korea	100.0 %	100.0 %	December
KT Living, Inc.	Residential building management	Korea	100.0 %	100.0 %	December
K-Realty Qualified Private Real Estate Investment Trust
No. 1 3	Real estate management	Korea	6.5 %	6.5 %	December
AQUA RETAIL VIETNAM COMPANY LIMITED	E-voucher issuance and trading business	Vietnam	100.0 %	100.0 %	December
K-Realty Qualified Private Real Estate Investment Trust
No. 4	Real estate management	Korea	98.3 %	93.9 %	December
BC Strategic Investment Fund 2	Investment fund	Korea	100.0 %	100.0 %	December
K-Logis Hwaseong Inc	Residential building development and supply	Korea	80.0 %	80.0 %	December
kt netcore. Co., Ltd.	Telecommunication facility maintenance and service business	Korea	100.0 %	100.0 %	December
kt p&m Co., Ltd	Information and communications development and Electrical design corporation	Korea	100.0 %	100.0 %	December

1 Sum of the interests owned by the Controlling Company and subsidiaries.

2 Although the Controlling Company owns less than 50% of the interest in kt Nasmedia, Co., Ltd. (formerly. Nasmedia, Co., Ltd.), KTCS Corporation, KTIS Corporation, kt Millie Seojae (formerly. Millie Seojae), and KT GENIE Music Corporation (formerly. GENIE Music Corporation), these entities are consolidated as the Controlling Company can exercise the majority of voting rights in its decision-making process at all times, based on voting patterns at previous shareholders meetings.

3 Although the Controlling Company owns less than 50% of the interest in K-Realty Qualified Private Real Estate Investment Trust No. 1, this entity is consolidated by comprehensively considering the criteria for determining control, such as power, variable profit, and relationship between power and variable profit, rather than simply judging by the interests owned by the Controlling Company.

4 The number of treasury stock held by subsidiaries are deducted from the total number of shares when calculating the controlling percentage interest.

(2) Changes in Scope of Consolidation

Subsidiaries newly included and excluded in the consolidation during the three-month period ended March 31, 2025:

Changes	Location	Name of subsidiary	Reason
Excluded	Korea	KT Linkus Co., Ltd.	Merged
Excluded	Korea	KT Music Contents Fund No.2	Liquidated
Excluded	Korea	Initech Co., Ltd.	Shares disposed

Table of Contents

KT Corporation and Its Subsidiaries

Notes to the Consolidated Interim Financial Statements

As of March 31, 2025 and 2024, and December 31, 2024

(3) Summarized information for consolidated subsidiaries as of March 31, 2025 and December 31, 2024, and for the three-month periods ended March 31, 2025 and 2024, is as follows

(In millions of Korean won) — Total assets	Total liabilities	Operating revenues	Profit(loss) for the period
KT Telecop Co., Ltd.	404,698	252,575	144,046	5,265
KT Alpha Co., Ltd.	450,884	179,516	96,474	10,817
KT Service Bukbu Co., Ltd.	50,448	50,726	56,345	(137	)
KT Service Nambu Co., Ltd.	98,202	105,078	92,795	(7,706	)
BC Card Co., Ltd. 1	6,414,043	4,591,322	871,989	35,157
H&C Network	81,812	24,633	6,819	30
kt Nasmedia, Co., Ltd. (formerly. Nasmedia, Co., Ltd.) 1	483,136	248,654	31,165	2,966
KTDS Co., Ltd.	285,088	146,134	153,652	9,032
KT M&S Co., Ltd.	256,389	183,947	213,316	4,429
KT MOS Bukbu Co., Ltd.	44,576	26,651	23,346	(326	)
KT MOS Nambu Co., Ltd.	46,534	23,534	24,060	(31	)
KT Skylife Co., Ltd 1	999,465	443,789	242,881	2,798
KT Estate Inc. 1	3,092,641	1,432,026	134,743	(2,295	)
KT GDH Co., Ltd.	7,921	1,279	859	106
KT Sat Co., Ltd.	742,963	95,992	43,565	6,292
KT Sports Co., Ltd.	34,611	21,671	16,499	(2,922	)
KT M Mobile Co., Ltd.	197,572	73,841	91,800	3,124
KT Investment Co., Ltd. 1	83,842	56,260	1,343	(65	)
KTCS Corporation 1	436,046	233,929	235,235	5,295
KTIS Corporation	463,596	254,715	153,299	4,549
Next Connect PFV	1,344,485	908,495	276,281	140,620
KT Japan Co., Ltd. 1	2,014	3,578	866	42
KT America, Inc.	6,851	626	1,918	68
KT Rwanda Networks Ltd. 2	125,573	151,718	5,558	(8,084	)
AOS Ltd. 2	14,269	18,128	2,922	1,188
KT Hong Kong Telecommunications Co., Ltd.	9,356	1,892	2,814	62
KT Huimangjieum 1	10,982	3,197	6,311	1,218
KT Engineering Co., Ltd.	98,743	49,236	33,132	(10,447	)

Table of Contents

KT Corporation and Its Subsidiaries

Notes to the Consolidated Interim Financial Statements

As of March 31, 2025 and 2024, and December 31, 2024

(In millions of Korean won) — Total assets	Total liabilities	Operating revenues	Profit(loss) for the period
KT Studio Genie Co., Ltd. 1	860,426	187,466	112,514	2,869
East Telecom LLC 1	79,268	41,853	9,837	1,958
KT ES Pte. Ltd. 1	80,028	62,918	24,603	(309	)
KTP SERVICES INC.	2,427	12		(62	)
Altimedia Corporation 1	43,736	12,398	8,043	(489	)
KT RUS LLC	392			(138	)
KT DX VIETNAM COMPANY LIMITED	1,434	70	181	(74	)
kt Cloud Co., Ltd. 1	2,073,846	535,919	249,092	19,344
K-Realty Qualified Private Real Estate Investment Trust
No. 1	79,150	50,758	1,159	(147	)
AQUA RETAIL VIETNAM COMPANY LIMITED	1,306	150	358	(239	)
kt netcore Co. Ltd	187,810	141,210	92,655	(14,536	)
kt p&m Co. Ltd	22,145	12,567	15,739	(350	)

1 As intermediate controlling companies, financial information from their consolidated financial statements is presented.

2 Convertible preferred stock issued by subsidiaries as of the end of the reporting period is included in liabilities.

3 Profit or loss of companies newly included in consolidated financial statements from the acquisition date of control to the end of the reporting period is included.

Table of Contents

KT Corporation and Its Subsidiaries

Notes to the Consolidated Interim Financial Statements

As of March 31, 2025 and 2024, and December 31, 2024

(In millions of Korean won)	December 31, 2024 — Total assets	Total liabilities	Operating revenues	Profit(loss) for the period
KT Linkus Co., Ltd.	W	54,247	55,750	19,546	(2,164	)
KT Telecop Co., Ltd.		400,437	253,509	130,834	2,233
KT Alpha Co., Ltd.		464,180	201,902	106,464	10,669
KT Service Bukbu Co., Ltd.		56,706	56,846	56,182	(2,304	)
KT Service Nambu Co., Ltd.		57,827	51,826	71,007	(1,822	)
BC Card Co., Ltd. 1		5,961,047	4,196,724	935,556	49,963
H&C Network		59,808	5,039	6,992	560
kt Nasmedia, Co., Ltd. (formerly. Nasmedia, Co., Ltd.) 1		492,782	252,707	32,075	3,279
KTDS Co., Ltd. 1		388,812	179,630	156,295	9,993
KT M&S Co., Ltd.		261,539	193,526	236,260	5,014
KT MOS Bukbu Co., Ltd.		50,262	32,012	23,340	(278	)
KT MOS Nambu Co., Ltd.		51,458	28,427	23,906	779
KT Skylife Co. Ltd 1		1,040,188	463,594	254,401	1,266
KT Estate Inc. 1		2,617,662	947,834	135,739	4,752
KT GDH Co., Ltd.		7,998	1,462	1,041	140
KT Sat Co., Ltd.		733,574	92,877	43,946	8,942
KT Sports Co., Ltd.		23,299	7,435	14,105	(4,224	)
KT Music Contents Fund No.2		5,508	1,589	34	12
KT M Mobile Co., Ltd.		195,196	74,570	82,263	3,173
KT Investment Co., Ltd. 1		84,369	56,721	4,930	1,078
KTCS Corporation 1		435,066	232,129	265,455	6,263
KTIS Corporation		469,932	261,826	145,328	3,368
Next Connect PFV		1,429,260	1,133,891		(1,570	)
KT Japan Co., Ltd. 1		1,750	3,289	781	138
KT America, Inc.		6,843	614	1,889	38
KT Rwanda Networks Ltd. 2		131,362	341,313	5,195	(696	)
AOS Ltd. 2		14,305	19,422	2,492	385
KT Hong Kong Telecommunications Co., Ltd.		9,105	1,680	5,065	170
KT Huimangjieum 1		8,854	2,275	4,656	649
KT Engineering Co., Ltd.		183,753	123,132	48,224	(3,647	)

Table of Contents

KT Corporation and Its Subsidiaries

Notes to the Consolidated Interim Financial Statements

As of March 31, 2025 and 2024, and December 31, 2024

(In millions of Korean won) — Total assets	Total liabilities	Operating revenues	Profit(loss) for the period
KT Studio Genie Co., Ltd. 1	880,509	212,683	106,511	1,605
East Telecom LLC 1	75,828	40,371	7,779	2,353
KT ES Pte. Ltd. 1	78,800	59,114	23,020	(4,568	)
KTP SERVICES INC.	3,257	750	298	214
Altimedia Corporation 1	45,287	11,919	8,199	(173	)
KT RUS LLC	420			(49	)
KT DX VIETNAM COMPANY LIMITED	1,568	120	30	(105	)
kt Cloud Co., Ltd. 1	2,061,020	542,569	175,188	3,095
K-Realty Qualified Private Real Estate Investment Trust
No. 1	79,220	50,681	881	(516	)
AQUA RETAIL VIETNAM COMPANY LIMITED	1,903	497	191	(228	)
kt netcore. Co. Ltd.	61,213	79
kt p&m Co. Ltd	10,029	96

1 As intermediate controlling companies, financial information from their consolidated financial statements is presented.

2 Convertible preferred stock issued by subsidiaries as of the end of the reporting period is included in liabilities.

3 Profit or loss of companies newly included in consolidated financial statements from the acquisition date of control to the end of the reporting period is included.

Table of Contents

KT Corporation and Its Subsidiaries

Notes to the Consolidated Interim Financial Statements

As of March 31, 2025 and 2024, and December 31, 2024

Material Accounting Policies

2.1 Basis of Preparation

The Group maintains its accounting records in Korean won and prepares statutory financial statements in the Korean language (Hangul) in accordance with International Financial Reporting Standards as adopted by the Republic of Korea (K-IFRS). The accompanying consolidated financial statements have been condensed, reformatted, and translated into English from the original Korean language financial statements.

The consolidated interim financial statements of the Group for the three-month period ended March 31, 2025, have been prepared in accordance with Korean IFRS 1034 Interim Financial Reporting. In order to understand the consolidated interim financial statements, the annual consolidated financial statements as of December 31, 2024 prepared in accordance with IFRS should be used together.

2.2 Changes in Accounting Policy and Disclosures

(1) New and amended standards and interpretations adopted by the Group

K-IFRS 1021 The Effects of Changes in Foreign Exchange Rates and K-IFRS 1101 First-time adoption of Korean International Financial Reporting Standards (Amendment) - Lack of Exchangeability

The amendments specify how to assess whether a currency is exchangeable, and how to determine the exchange rate when it is not.

The amendments state that a currency is exchangeable into another currency when an entity is able to obtain the other currency within a time frame that allows for a normal administrative delay and through a market or exchange mechanism in which an exchange transaction would create enforceable rights and obligations.

When a currency is not exchangeable into another currency, the spot exchange rate is estimated as of the measurement date, either by using an observable exchange rate without adjustment or by applying an alternative estimation technique.

(2) New and revised standards and interpretations in issue but not yet effective or adopted by the Group

At the date of authorization of these financial statements, the Group has not applied the following new and amended K-IFRS standards that have been issued but are not yet effective:

K-IFRS 1109 Financial Instruments and K-IFRS 1107 Financial Instruments: Disclosures Classification and measurement requirements of financial instruments

Table of Contents

KT Corporation and Its Subsidiaries

Notes to the Consolidated Interim Financial Statements

As of March 31, 2025 and 2024, and December 31, 2024

The amendments clarify the conditions related to the discharge of a financial liability before the settlement date when settling such financial liabilities using an electronic payment system. They further specify an interest feature, a contingent feature, financial assets with non-recourse features and contractually linked instruments which should be considered in assessing whether contractual cash flows of a financial asset are consistent with a basic lending arrangement. Furthermore, the amendments include additional disclosure requirements for investments in equity instruments designated at fair value through other comprehensive income and contractual terms that could change the timing or amount of contractual cash flows. The amendments are applied retrospectively for annual reporting periods beginning on or after 1 January 2026 with earlier application permitted.

K-IFRS 1109 Financial Instruments Derecognition of lease liabilities and Transaction price

The amendments clarify that when a lessee has determined that a lease liability has been extinguished in accordance with K-IFRS 1109, the lessee is required to recognize any resulting gain or loss in profit or loss. Additionally, the amendments have replaced their transaction price (as defined in K-IFRS 1115) in K-IFRS 1109:5.1.3 with the amount determined by applying K-IFRS 1115 to remove an inconsistency between K-IFRS 1109 and the requirements in K-IFRS 1115.

The amendments are effective for annual reporting periods beginning on or after 1 January 2026, with earlier application permitted.

K-IFRS 1110 Consolidated Financial Statements Determination of de facto agent

The amendments have amended K-IFRS 1110:B74 to use less conclusive language and to clarify that the relationship described in K-IFRS1110:B74 is just one example of a circumstance in which judgement is required to determine whether a party is acting as a de facto agent.

The amendments are effective for annual reporting periods beginning on or after 1 January 2026, with earlier application permitted.

K-IFRS 1101 First-time adoption of Korean International Financial Reporting Standards Hedging accounting by a first-time adopter

The amendments have improved the consistency of the wording of K-IFRS 1101:B6 with the requirements for hedge accounting in K-IFRS 1109 and added cross-references to K-IFRS 1109:6.4.1 to improve the understandability of K-IFRS 1101.

The amendments are effective for annual reporting periods beginning on or after 1 January 2026, with earlier application permitted.

K-IFRS 1107 Financial Instruments: Disclosures Gain or loss on derecognition

The amendments have updated the obsolete cross-reference in K-IFRS 1107:B38 and aligned the wording of this paragraph with the terms used in K-IFRS.

The amendments are effective for annual reporting periods beginning on or after 1 January 2026, with earlier application permitted.

K-IFRS 1007 Statement of Cash Flows : Cost method

The amendments have replaced the term cost method with at cost in K-IFRS 1007:37.

Table of Contents

KT Corporation and Its Subsidiaries

Notes to the Consolidated Interim Financial Statements

As of March 31, 2025 and 2024, and December 31, 2024

The amendments are effective for annual reporting periods beginning on or after 1 January 2026, with earlier application permitted.

The Group is reviewing the impact of the above-listed amendments on the financial statements.

2.3 Accounting Policies

The material accounting policies and methods of computation used in the preparation of the consolidated interim financial statements are consistent with those of the consolidated financial statements for the year ended December 31, 2024, except for the changes resulting from the application of amendments and enactments of standards described in Note 2.2 (1) and as detailed below.

2.3.1 Income Tax Expense

Income tax expense for the interim period is recognized based on managements best estimate of the weighted average annual income tax rate expected for the full financial year. The estimated average annual effective income tax rate is applied to the pre-tax income of the interim period.

Critical Accounting Estimates and Assumptions

The preparation of financial statements requires the Group to make estimates and assumptions about the future. Management also needs to exercise judgment in applying the Groups accounting policies. Estimates and assumptions are evaluated continuously and are based on historical experience and other factors, including reasonable expectations of future events under the given circumstances. As the resulting accounting estimates will, by definition, rarely equal the actual results, they involve a significant risk of resulting in material adjustments.

Table of Contents

KT Corporation and Its Subsidiaries

Notes to the Consolidated Interim Financial Statements

As of March 31, 2025 and 2024, and December 31, 2024

Financial Instruments by Category

Financial instruments by category as of March 31, 2025 and December 31, 2024, are as follows:

(In millions of Korean won) — Financial assets	March 31, 2025 — Financial assets at amortized cost	Financial assets at FVTPL	Financial assets at FVOCI	Derivatives used for hedging	Total
Cash and cash equivalents	W	3,132,996				3,132,996
Trade and other receivables		8,011,353		273,612		8,284,965
Other financial assets		1,041,078	1,082,702	1,658,876	464,212	4,246,868

(In millions of Korean won) — Financial liabilities	March 31, 2025 — Financial liabilities at amortized cost	Financial liabilities at FVTPL	Derivatives used for hedging	Others	Total
Trade and other payables 1	W	6,881,435				6,881,435
Borrowings		11,169,545				11,169,545
Other financial liabilities		954,158	123,169	14		1,077,341
Lease liabilities					1,058,786	1,058,786

1 Amounts related to employee benefit plans are excluded in Trade and other payables.

(In millions of Korean won) — Financial assets	December 31, 2024 — Financial assets at amortized cost	Financial assets at FVTPL	Financial assets at FVOCI	Derivatives used for hedging	Total
Cash and cash equivalents	W	3,716,680				3,716,680
Trade and other receivables		7,573,409		114,774		7,688,183
Other financial assets		962,653	1,029,926	1,665,368	445,471	4,103,418

(In millions of Korean won) — Financial liabilities	December 31, 2024 — Financial liabilities at amortized cost	Financial liabilities at FVTPL	Derivatives used for hedging	Others	Total
Trade and other payables 1	W	7,214,174				7,214,174
Borrowings		10,520,690				10,520,690
Other financial liabilities		942,135	132,011	3		1,074,149
Lease liabilities					1,059,453	1,059,453

1 Amounts related to employee benefit plans are excluded in Trade and other payables.

Table of Contents

KT Corporation and Its Subsidiaries

Notes to the Consolidated Interim Financial Statements

As of March 31, 2025 and 2024, and December 31, 2024

Trade and Other Receivables

(1) Trade and other receivables as of March 31, 2025 and December 31, 2024, are as follows:

(In millions of Korean won)	March 31, 2025 — Total amounts	Provision for impairment		Present value discount		Carrying amount
Current assets
Trade receivables	W	3,617,433	(383,455	)	(7,854	)	3,226,124
Other receivables		3,494,053	(105,436	)	(2,715	)	3,385,902
Total	W	7,111,486	(488,891	)	(10,569	)	6,612,026
Non-current assets
Trade receivables	W	201,800	(1,299	)	(11,129	)	189,372
Other receivables		1,591,948	(97,708	)	(10,673	)	1,483,567
Total	W	1,793,748	(99,007	)	(21,802	)	1,672,939
(In millions of Korean won)	December 31, 2024
	Total amounts	Provision for impairment		Present value discount		Carrying amount
Current assets
Trade receivables	W	3,309,177	(378,327	)	(9,011	)	2,921,839
Other receivables		3,335,066	(107,653	)	(1,796	)	3,225,617
Total	W	6,644,243	(485,980	)	(10,807	)	6,147,456
Non-current assets
Trade receivables	W	260,154	(1,299	)	(14,977	)	243,878
Other receivables		1,405,923	(96,941	)	(12,133	)	1,296,849
Total	W	1,666,077	(98,240	)	(27,110	)	1,540,727

Table of Contents

KT Corporation and Its Subsidiaries

Notes to the Consolidated Interim Financial Statements

As of March 31, 2025 and 2024, and December 31, 2024

(2) Details of other receivables as of March 31, 2025 and December 31, 2024, are as follows:

(In millions of Korean won) — Loans	March 31, 2025 — W	61,580		42,413
Receivables 1		2,992,462		2,913,728
Accrued income		97,181		40,950
Refundable deposits		253,721		264,054
Loans receivable		1,406,377		1,209,887
Finance lease receivables		198,241		202,372
Others		63,051		53,656
Less: Provision for impairment		(203,144	)	(204,594	)
Total	W	4,869,469		4,522,466

1 As of March 31, 2025, credit sales asset of W 2,189,444 million (December 31, 2024: W 1,970,895 million) held by BC Card Co., Ltd. are included.

(3) The maximum exposure of trade and other receivables to credit risk is the carrying amount of each class of receivables mentioned above as of March 31, 2025.

(4) The Group classifies a certain portion of trade receivables as financial assets at fair value through other comprehensive income, based on business model for managing the asset and the cash flow characteristics of the contract.

Table of Contents

KT Corporation and Its Subsidiaries

Notes to the Consolidated Interim Financial Statements

As of March 31, 2025 and 2024, and December 31, 2024

Other Financial Assets and Liabilities

(1) Details of other financial assets and liabilities as of March 31, 2025 and December 31, 2024, are as follows:

(In millions of Korean won)	March 31, 2025
Other financial assets
Financial assets at amortized cost 1	W	1,041,078		962,653
Financial assets at fair value through profits or loss 1,2		1,082,702		1,029,926
Financial assets at fair value through other comprehensive income		1,658,876		1,665,368
Derivatives used for hedging		464,212		445,471
Less: Non-current		(2,764,004	)	(2,759,170	)
Current	W	1,482,864		1,344,248
Other financial liabilities
Financial liabilities at amortized cost 3,4	W	954,158		942,135
Financial liabilities at FVTPL		123,169		132,011
Derivatives used for hedging		14		3
Less: Non-current		(725,976	)	(722,517	)
Current	W	351,365		351,632

1 As of March 31, 2025, the Groups financial instruments amount to W 106,508 million (December 31, 2024: W 97,913 million) and consist of checking account deposits, time deposits, and others which are subject to withdrawal restrictions.

2 As of March 31, 2025, the Group provided investments in Korea Software Financial Cooperative and others amounting to W 10,618 million (December 31, 2024: W 10,511 million) as a collateral in exchange for the payment guarantee provided by the Korea Software Financial Cooperative and others.

3 The amount includes liabilities related to the obligation to acquire additional shares in Epsilon Global Communications Pte. Ltd. and kt Cloud Co., Ltd. (Note 15).

4 The amount includes liabilities convertible preferred Stock issued by kt Cloud Co., Ltd. (Note 15).

Table of Contents

KT Corporation and Its Subsidiaries

Notes to the Consolidated Interim Financial Statements

As of March 31, 2025 and 2024, and December 31, 2024

(2) Financial Assets at fair value through profit or loss

1) Details of financial assets at fair value through profit or loss as of March 31, 2025 and December 31, 2024, are as follows:

(In millions of Korean won) — Equity instruments (Listed)	March 31, 2025 — W	6,394		5,620
Equity instruments (Unlisted)		51,816		47,227
Debt instruments		1,024,044		971,805
Derivatives held for trading		448		5,274
Total		1,082,702		1,029,926
Less: Non-current		(811,387	)	(826,708	)
Current	W	271,315		203,218

2) The maximum exposure to credit risks for debt instruments of financial assets at fair value through profit or loss is the carrying amount of each class of debt instruments above as of March 31, 2025.

(3) Financial Assets at fair value through other comprehensive income

1) Details of financial assets at fair value through other comprehensive income as of March 31, 2025 and December 31, 2024, are as follows:

(In millions of Korean won) — Equity instruments (Listed)	March 31, 2025 — W	1,312,528		1,317,458
Equity instruments (Unlisted)		340,089		341,753
Debt instruments		6,259		6,157
Total		1,658,876		1,665,368
Less: Non-current		(1,658,876	)	(1,665,368	)
Current	W

2) Upon disposal of these equity investments, any balance within the accumulated other comprehensive income is reclassified not to profit or loss, but to retained earnings. Upon disposal of these debt investments, the remaining balance of the accumulated other comprehensive income is reclassified to profit or loss.

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KT Corporation and Its Subsidiaries

Notes to the Consolidated Interim Financial Statements

As of March 31, 2025 and 2024, and December 31, 2024

(4) Derivatives used for Hedging

1) Details of valuation of derivatives used for hedging as of March 31, 2025 and December 31, 2024, are as follows:

(In millions of Korean won)	March 31, 2025 — Assets		Liabilities		Assets		Liabilities
Interest rate swap	W			14		352		3
Currency swap 1		464,212				445,119
Total		464,212		14		445,471		3
Less: Non-current		(279,806	)	(14	)	(261,719	)
Current	W	184,406				183,752		3

1 The currency swap contract is to hedge the risk of variability in cash flow from the borrowings due to changes in interest rate and foreign exchange rate and the expected maximum period for the Group to be exposed to risks of cash flow fluctuation by hedged items is until September 7, 2034.

The entire fair value of a hedging derivative is classified as a non-current asset or liability if the remaining maturity of the hedged item exceeds 12 months and, as a current asset or liability, if the maturity of the hedged item is within 12 months.

2) Details of valuation gains and losses on the derivative instruments for the three-month periods ended March 31, 2025 and 2024, are as follows:

(In millions of Korean won)
	2025				2024
Type of transaction	Valuation gain	Valuation loss	Other comprehensive loss 1		Valuation gain	Valuation loss	Other comprehensive loss 1
Interest rate swap	W	10		(373	)	18		858
Currency swap		7,584	8,561	20,069		116,388	93	(6,280	)
Total	W	7,594	8,561	19,696		116,406	93	(5,422	)

1 The amounts are before adjustments for deferred income tax and allocations to non-controlling interests and have been directly reflected in equity.

3) The effective portion recognized in profit or loss related to cash flow hedges amounts to valuation gains of W 18,622 million as other comprehensive income for the year ended March 31, 2025 (for the three-month period ended March 31, 2024: W 110,629 million). The ineffective portion recognized in profit or loss related to cash flow hedges amounts to valuation gains of W 341 million as current profit or loss for the year ended March 31, 2025 (for the three-month period ended March 31, 2024: W 804 million). In addition, the valuation loss reclassified from other comprehensive income to profit or loss amounts to W 1,074 million for the year ended March 31, 2025 (for the three-month period ended March 31, 2024: valuation gains of W 116,052 million).

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KT Corporation and Its Subsidiaries

Notes to the Consolidated Interim Financial Statements

As of March 31, 2025 and 2024, and December 31, 2024

(5) Financial Liabilities at fair value through profit or loss

1) Details of financial liabilities at fair value through profit or loss as of March 31, 2025 and December 31, 2024, are as follows:

(In millions of Korean won) — Derivatives held for trading 1	March 31, 2025 — W	123,169	132,011

1 The Group signed a shareholder-to-share agreement with financial investors participating in the paid-in capital increase of K Bank Inc. for the three-month period ended March 31, 2025. According to the Drag-Along Right, if K Back inc. fails to be listed on the terms agreed upon for the date of completion of the acquisition, financial investors may exercise the Drag-Along right to the Group, and the Group may comply or exercise the right to claim for sale. If financial investors exercise the Drag-Along Right, the Group must exercise the right to claim for sale or guarantee the return on the terms agreed upon by financial investors (Note 15).

2) The valuation gain and loss on financial liabilities at fair value through profit or loss for the three-month periods ended March 31, 2025 and 2024, are as follows:

(In millions of Korean won)	2025 — Valuation gain	Valuation loss	Valuation gain	Valuation loss
Derivatives liabilities held for trading	W	8,461		11,048

Inventories

Inventories as of March 31, 2025 and December 31, 2024, are as follows:

(In millions of Korean won)
	March 31, 2025				December 31, 2024
	Acquisition cost	Valuation allowance		Carrying amount	Acquisition cost	Valuation allowance		Carrying amount
Merchandise	W	901,507	(75,814	)	825,693	1,003,127	(99,517	)	903,610
Others		28,715	(524	)	28,191	37,123	(524	)	36,599
Total	W	930,222	(76,338	)	853,884	1,040,250	(100,041	)	940,209

Cost of inventories recognized as expenses for the three-month period ended March 31, 2025 amounts to W 943,415 million (for the three-month period ended March 31, 2024: W 924,958 million) and reversal valuation loss on inventory amounts to W 23,703 million for the three-month period ended March 31, 2025 (for the three-month period ended March 31, 2024: W 19,476 million).

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KT Corporation and Its Subsidiaries

Notes to the Consolidated Interim Financial Statements

As of March 31, 2025 and 2024, and December 31, 2024

Other Assets and Liabilities

Other assets and liabilities as of March 31, 2025 and December 31, 2024, are as follows:

(In millions of Korean won)	March 31, 2025
Other assets
Advance payments	W	230,974		217,679
Prepaid expenses		280,465		170,544
Contract cost		1,787,555		1,738,164
Contract assets		806,274		800,806
Others		56,164		18,929
Less: Non-current		(786,223	)	(843,991	)
Current	W	2,375,209		2,102,131
Other liabilities
Advances received 1	W	1,005,109		1,151,499
Withholdings		147,934		154,355
Unearned revenue 1		41,893		38,327
Lease liabilities		1,058,786		1,059,453
Contract liabilities		292,448		273,320
Others		21,266		31,203
Less: Non-current		(778,306	)	(782,520	)
Current	W	1,789,130		1,925,637

1 The amounts include adjustments arising from adoption of Korean IFRS 1115 Revenue from Contracts with Customers (Note 19).

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KT Corporation and Its Subsidiaries

Notes to the Consolidated Interim Financial Statements

As of March 31, 2025 and 2024, and December 31, 2024

Property and Equipment, Investment Properties, and Intangible Assets

(1) Changes in property and equipment for three-month period ended March 31, 2025 and 2024, are as follows:

(In millions of Korean won) — Beginning, net	2025 — W	14,825,814		14,872,079
Acquisition and capital expenditure		393,227		440,801
Disposal and termination		(33,677	)	(17,625	)
Depreciation		(709,846	)	(701,279	)
Transfer from (to) investment properties		(7,748	)	5,805
Changes in consolidation scope		(2,930	)
Others 1		(66,700	)	(14,059	)
Ending, net	W	14,398,140		14,585,722

1 Amounts include transfers to intangible assets.

(2) Changes in investment properties for the three-month period ended March 31, 2025 and 2024, are as follows:

(In millions of Korean won) — Beginning, net	2025 — W	2,299,616		2,198,135
Acquisition and capital expenditure		564,195		9,962
Disposal				(1,772	)
Depreciation		(18,171	)	(13,851	)
Transfer from (to) property, plant and equipment		7,748		(5,805	)
Changes in consolidation		(3,430	)
Others		3,437		(265	)
Ending, net	W	2,853,395		2,186,404

As of March 31, 2025, the Group (Lessor) has entered into a non-cancellable operating lease contract for real estate. The future minimum lease payments under this contract amount to W 114,251 million for one year or less, W 123,502 million for more than one year and less than five years, W 9,903 million for over five years, and W 247,656 million in total.

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KT Corporation and Its Subsidiaries

Notes to the Consolidated Interim Financial Statements

As of March 31, 2025 and 2024, and December 31, 2024

(3) Changes in intangible assets for the three-month period ended March 31, 2025 and 2024, are as follows:

(In millions of Korean won) — Beginning, net	2025 — W	1,862,740		2,533,861
Acquisition and capital expenditure 1		95,928		39,260
Disposal and termination		(2,540	)	(7,496	)
Amortization		(150,238	)	(170,080	)
Impairment				(22	)
Changes in consolidation scope		(2,471	)
Others		(7,432	)	10,856
Ending, net	W	1,795,987		2,406,379

1 Amounts include transfers from property and equipment.

(4) The carrying amount of intangible assets with indefinite useful lives, including membership rights (except for goodwill), that are not subject to amortization, is W 203,492 million as of March 31, 2025 (December 31, 2024: W 203,227 million).

(5) Goodwill is allocated to the Groups cash-generating units, which are identified by operating segments. As of March 31, 2025, the goodwill allocated to each cash-generation unit is as follows:

(In millions of Korean won) — Cash-Generating Unit	Amount
Mobile services	W	65,057
BC Card Co., Ltd.		41,234
kt HCN Co., Ltd. (formerly. HCN Co., Ltd.)		2,674
KT GENIE Music Corporation (formerly. GENIE Music Corporation)		38,258
kt Millie Seojae (formerly. Millie Seojae)		54,725
PlayD Co., Ltd.		26,262
KT Telecop Co., Ltd.		15,418
KT MOS Bukbu Co., Ltd. and others		30,101
Total	W	273,729

The recoverable amount of goodwill has been determined based on the fair value obtained by calculating the value in use or deducting the cost of disposal. The value in use was calculated using pre-tax cash flow estimates based on financial budgets, such as the budget for the next five years. Cash flows after the estimated period were estimated using the expected growth rate, and the growth rate does not exceed the long-term average growth rate of the industry to which the cash-generating unit belongs. The Group has determined revenue growth rate based on past performance and expectations of future market changes. The Group has determined pre-tax cash flow estimates based on past earnings and market growth forecasts, and the discount rate used reflects the specific risks associated with related operations.

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KT Corporation and Its Subsidiaries

Notes to the Consolidated Interim Financial Statements

As of March 31, 2025 and 2024, and December 31, 2024

Investments in Associates and Joint Ventures

(1) Details of associates as of March 31, 2025 and December 31, 2024, are as follows:

March 31, 2025	December 31, 2024
KIF Investment Fund	33.3 %	33.3 %	Korea	December
K Bank Inc.	33.7 %	33.7 %	Korea	December
HD Hyundai Robotics Co., Ltd. 1	10.0 %	10.0 %	Korea	December
Megazone Cloud Corporation 1	6.8 %	6.8 %	Korea	December
IGIS No. 468-1 General Private Real Estate Investment
Company	44.6 %	44.6 %	Korea	December
KT-DSC Creative Economy Youth Start-up Investment Fund	28.6 %	28.6 %	Korea	December
IGIS No. 395 Professional Investors Private Investment Real Estate Investment LLC	35.3 %	35.3 %	Korea	December

1 Although the Group holds less than 20% interest in ordinary shares as of March 31, 2025, these entities are included in investments in associates as the Group exerts significant influence over operational and financial policies.

(2) Changes in investments in associates and joint ventures for the three-month period ended March 31, 2025 and 2024, are as follows:

(In millions of Korean won)	2025 — Beginning	Acquisition (Disposal)	Share of net profit (loss) from associates and joint ventures 1		Others	Ending
KIF Investment Fund	W	191,125		97			191,222
K Bank Inc.		917,641		2,347		943	920,931
HD Hyundai Robotics Co., Ltd.		45,830		(465	)	141	45,506
Megazone Cloud Corporation		130,773		(2,403	)	669	129,039
IGIS No. 468-1 General Private Real Estate Investment
Company		23,374		(3	)		23,371
KT-DSC Creative Economy Youth Start-up Investment Fund		15,951		1,170		3	17,124
IGIS Professional Investors Private Investment Real Estate Investment LLC No 395		9,727		(476	)		9,251
Others 1		227,811	8,935	(6,352	)	543	230,937
Total	W	1,562,232	8,935	(6,085	)	2,299	1,567,381

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KT Corporation and Its Subsidiaries

Notes to the Consolidated Interim Financial Statements

As of March 31, 2025 and 2024, and December 31, 2024

(In millions of Korean won)	2024 — Beginning	Acquisition (Disposal)	Share of net profit (loss) from associates and joint ventures 1		Others		Ending
KIF Investment Fund	W	177,054		43				177,097
K Bank Inc.		872,881		16,233		859		889,973
HD Hyundai Robotics Co., Ltd.		47,734		142		(112	)	47,764
Megazone Cloud Corporation		131,694		(764	)	719		131,649
IGIS No. 468-1 General Private Real Estate Investment
Company		23,484		(3	)			23,481
KT-DSC Creative Economy Youth Start-up Investment Fund		25,117		(362	)			24,755
IGIS Professional Investors Private Investment Real Estate Investment LLC No 395		11,942		(751	)			11,191
LS Marine Solution Co., Ltd.		23,492		(137	)	(312	)	23,043
Others 1		243,491	4,600	(5,446	)	(109	)	242,536
Total	W	1,556,889	4,600	8,955		1,045		1,571,489

1 KT Investment Co., Ltd., a subsidiary of the Group, recognized net profit (loss) in the investments in associates as operating income. Net loss recognized as operating income for the three-months period ended March 31, 2025 amount to W 156 million (three-month period ended March 31, 2024: net gain of W 144 million).

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KT Corporation and Its Subsidiaries

Notes to the Consolidated Interim Financial Statements

As of March 31, 2025 and 2024, and December 31, 2024

(3) Summarized statements of financial position of the major associates and joint ventures as of March 31, 2025 and December 31, 2024 and summarized statements of profit or loss for the three-month period ended March 31, 2025 and 2024, are as follows:

(In millions of Korean won)	March 31, 2025 — Assets	Liabilities	Operating revenue	Profit(loss) for the period
KIF Investment Fund	W	573,668			292
K Bank Inc.		30,394,060	28,378,674	323,501	16,118
HD Hyundai Robotics Co., Ltd.		359,462	111,911	54,460	(4,656	)
Megazone Cloud Corporation		1,381,172	813,456	477,609	(638	)
IGIS No. 468-1 General Private Real Estate Investment
Company		52,357	6	1	(8	)
KT-DSC Creative Economy Youth Start-up Investment Fund		60,327	404	2,575	2,430
IGIS Professional Investors Private Investment Real Estate Investment LLC No 395		181,673	140,122		(112	)

(In millions of Korean won)	December 31, 2024 — Assets	Liabilities	Operating revenue	Profit(loss) for the period
KIF Investment Fund	W	573,376			127
K Bank Inc		31,191,682	29,187,152	281,717	49,293
HD Hyundai Robotics Co., Ltd.		356,541	105,722	46,769	1,397
Megazone Cloud Corporation		1,456,061	860,488	428,618	182
IGIS No. 468-1 General Private Real Estate Investment
Company		52,370	11	1	(7	)
KT-DSC Creative Economy Youth Start-up Investment Fund		56,231	404	2	(1,269	)
IGIS Professional Investors Private Investment Real Estate Investment LLC No 395		175,328	133,665		(86	)

(4) Due to discontinuance of equity method of accounting, the Group has not recognized loss from associates and joint ventures of W 1,628 million for the three-month period March 31, 2025 (three-month period ended March 31, 2024: W 85 million). The unrecognized accumulated comprehensive loss of associates and joint ventures as of March 31, 2025, is W 8,894 million (December 31, 2024: W 7,942 million).

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KT Corporation and Its Subsidiaries

Notes to the Consolidated Interim Financial Statements

As of March 31, 2025 and 2024, and December 31, 2024

Trade and Other Payables

(1) Details of trade and other payables as of March 31, 2025 and December 31, 2024, are as follows:

(In millions of Korean won)	March 31, 2025
Current liabilities
Trade payables	W	865,080	1,036,707
Other payables		6,087,459	6,358,084
Total	W	6,952,539	7,394,791
Non-current liabilities
Trade payables		914	1,035
Other payables	W	371,485	577,374
Total	W	372,399	578,409

(2) Details of other payables as of March 31, 2025 and December 31, 2024, are as follows:

(In millions of Korean won) — Non-trade payables 1	March 31, 2025 — W	3,919,695		4,578,424
Accrued expenses		1,433,872		1,293,627
Operating deposits		859,151		833,482
Others		246,226		229,925
Less: non-current		(371,485	)	(577,374	)
Current	W	6,087,459		6,358,084

1 As of March 31, 2025, credit sale liabilities amounting to W 1,726,230 million (December 31, 2024: W 1,612,495 million) held by BC Card Co., Ltd. (a subsidiary of the Group) are included.

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KT Corporation and Its Subsidiaries

Notes to the Consolidated Interim Financial Statements

As of March 31, 2025 and 2024, and December 31, 2024

Borrowings

(1) Details of borrowings as of March 31, 2025 and December 31, 2024, are as follows:

1) Debentures

(In millions of Korean won and foreign currencies in thousands) — Type	Maturity	Annual interest rates	March 31, 2025 — Foreign currency	Korean won	Foreign currency		Korean won
MTNP notes 1	Sep. 07, 2034	6.500 %	USD 100,000	W	146,650	USD 100,000	W	147,000
MTNP notes	Jul. 18, 2026	2.500 %	USD 400,000		586,600	USD 400,000		588,000
MTNP notes	Sep. 01, 2025	1.000 %	USD 400,000		586,600	USD 400,000		588,000
MTNP notes	Jan. 21, 2027	1.375 %	USD 300,000		439,950	USD 300,000		441,000
MTNP notes	Aug. 08, 2025	4.000 %	USD 500,000		733,250	USD 500,000		735,000
MTNP notes	Feb. 02, 2028	4.125 %	USD 500,000		733,250	USD 500,000		735,000
MTNP notes	Mar. 05, 2027	1.217 %	JPY 23,300,000		228,750
MTNP notes	Mar. 07, 2028	1.367 %	JPY 6,700,000		65,778
The 183-3rd Public bond	Dec. 22, 2031	4.270 %			160,000			160,000
The 184-3rd Public bond	Apr. 10, 2033	3.170 %			100,000			100,000
The 186-4th Public bond	Jun. 26, 2034	3.695 %			100,000			100,000
The 187-4th Public bond	Sep. 02, 2034	3.546 %			100,000			100,000
The 188-2nd Public bond	Jan. 29, 2025							240,000
The 188-3rd Public bond	Jan. 29, 2035	2.706 %			50,000			50,000
The 189-3rd Public bond	Jan. 28, 2026	2.203 %			100,000			100,000
The 189-4th Public bond	Jan. 28, 2036	2.351 %			70,000			70,000
The 190-3rd Public bond	Jan. 30, 2028	2.947 %			170,000			170,000
The 190-4th Public bond	Jan. 30, 2038	2.931 %			70,000			70,000
The 191-3rd Public bond	Jan. 15, 2029	2.160 %			110,000			110,000
The 191-4th Public bond	Jan. 14, 2039	2.213 %			90,000			90,000
The 192-3rd Public bond	Oct. 11, 2029	1.622 %			50,000			50,000
The 192-4th Public bond	Oct. 11, 2039	1.674 %			110,000			110,000
The 193-2nd Public bond	Jun. 17, 2025	1.434 %			70,000			70,000
The 193-3rd Public bond	Jun. 17, 2030	1.608 %			20,000			20,000
The 193-4th Public bond	Jun. 15, 2040	1.713 %			60,000			60,000
The 194-2nd Public bond	Jan. 27, 2026	1.452 %			140,000			140,000
The 194-3rd Public bond	Jan. 27, 2031	1.849 %			50,000			50,000
The 194-4th Public bond	Jan. 25, 2041	1.976 %			80,000			80,000
The 195-2nd Public bond	Jun. 10, 2026	1.806 %			80,000			80,000
The 195-3rd Public bond	Jun. 10, 2031	2.168 %			40,000			40,000
The 196-1st Public bond	Jan. 27, 2025							270,000
The 196-2nd Public bond	Jan. 27, 2027	2.637 %			100,000			100,000
The 196-3rd Public bond	Jan. 27, 2032	2.741 %			30,000			30,000
The 197-1st Public bond	Jun. 27, 2025	4.191 %			280,000			280,000
The 197-2nd Public bond	Jun. 29, 2027	4.188 %			120,000			120,000
The 198-1st Public bond	Jan. 10, 2025							70,000
The 198-2nd Public bond	Jan. 12, 2026	3.869 %			150,000			150,000
The 198-3rd Public bond	Jan. 12, 2028	3.971 %			80,000			80,000
The 199-1st Public bond	Jul. 11, 2025	4.028 %			85,000			85,000
The 199-2nd Public bond	Jul. 10, 2026	4.146 %			160,000			160,000
The 199-3rd Public bond	Jul. 12, 2028	4.221 %			155,000			155,000
The 200-1st Public bond	Feb. 27, 2026	3.552 %			120,000			120,000

Table of Contents

KT Corporation and Its Subsidiaries

Notes to the Consolidated Interim Financial Statements

As of March 31, 2025 and 2024, and December 31, 2024

(In millions of Korean won and foreign currencies in thousands) — Type	Maturity	Annual interest rates	Korean won	Korean won
The 200-2nd Public bond	Feb. 26, 2027	3.608 %	200,000	200,000
The 200-3rd Public bond	Feb. 27, 2029	3.548 %	80,000	80,000
The 201-1st Public bond	Dec. 02, 2027	2.899 %	130,000	130,000
The 201-2nd Public bond	Dec. 02, 2029	2.918 %	70,000	70,000
The 201-3rd Public bond	Dec. 02, 2034	3.057 %	100,000	100,000
The 18-2nd unsecured bond	Jul. 02, 2026	2.224 %	50,000	50,000
The 19-1nd unsecured bond	Jun. 12, 2027	3.691 %	50,000	50,000
The 19-2nd unsecured bond	Jun. 12, 2029	3.783 %	50,000	50,000
The 149-2nd Won-denominated unsecured bond	Mar. 10, 2026	1.756 %	30,000	30,000
The 152-2nd Won-denominated unsecured bond	Aug. 28, 2026	1.982 %	20,000	20,000
The 154th Won-denominated unsecured bond	Jan. 23, 2025			40,000
The 155-3rd Won-denominated unsecured bond	Feb. 28, 2025			20,000
The 156-1st Won-denominated unsecured bond	Mar. 25, 2025			60,000
The 156-2nd Won-denominated unsecured bond 2	Mar. 25, 2032	10Y CMS+0.965 %	40,000	40,000
The 158th Won-denominated unsecured bond	Jan. 27, 2025			50,000
The 159-2nd Won-denominated unsecured bond	Aug. 11, 2027	4.505 %	30,000	30,000
The 160-3rd Won-denominated unsecured bond	Dec. 12, 2025	5.769 %	30,000	30,000
The 161-3rd Won-denominated unsecured bond	Jun. 20, 2025	5.594 %	30,000	30,000
The 161-4th Won-denominated unsecured bond	Dec. 22, 2025	5.615 %	10,000	10,000
The 163-1st Won-denominated unsecured bond	Feb. 20, 2026	4.059 %	20,000	20,000
The 163-2nd Won-denominated unsecured bond	Feb. 22, 2028	4.311 %	80,000	80,000
The 164-3rd Won-denominated unsecured bond	Apr. 14, 2028	4.220 %	30,000	30,000
The 165-1st Won-denominated unsecured bond	May. 09, 2025	3.870 %	30,000	30,000

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KT Corporation and Its Subsidiaries

Notes to the Consolidated Interim Financial Statements

As of March 31, 2025 and 2024, and December 31, 2024

(In millions of Korean won and foreign currencies in thousands) — Type	Maturity	Annual interest rates	Korean won	Korean won
The 165-2nd Won-denominated unsecured bond	Nov. 09, 2026	3.932 %	10,000	10,000
The 165-3rd Won-denominated unsecured bond	May. 07, 2027	3.972 %	30,000	30,000
The 166-2nd Won-denominated unsecured bond	Apr. 22, 2025	4.310 %	40,000	40,000
The 166-3rd Won-denominated unsecured bond	May. 21, 2025	4.332 %	10,000	10,000
The 166-4th Won-denominated unsecured bond	May. 22, 2025	4.332 %	40,000	40,000
The 167-2nd Won-denominated unsecured bond	Jan. 22, 2025			50,000
The 167-3rd Won-denominated unsecured bond	Feb. 21, 2025			10,000
The 167-4th Won-denominated unsecured bond	Dec. 22, 2025	3.858 %	10,000	10,000
The 168-1st Won-denominated unsecured bond	Jun. 05, 2025	3.687 %	40,000	40,000
The 168-2nd Won-denominated unsecured bond	Aug. 06, 2025	3.703 %	70,000	70,000
The 168-3rd Won-denominated unsecured bond	Oct. 02, 2025	3.724 %	40,000	40,000
The 169th Won-denominated unsecured bond	Apr. 04, 2025	3.671 %	50,000	50,000
The 170th Won-denominated unsecured bond	Jun. 12, 2026	3.688 %	50,000	50,000
The 171-1st Won-denominated unsecured bond	Jun. 11, 2027	3.330 %	20,000	20,000
The 171-2nd Won-denominated unsecured bond	Aug. 12, 2027	3.329 %	60,000	60,000
The 172-1st Won-denominated unsecured bond	Mar. 06, 2026	3.514 %	10,000	10,000
The 172-2nd Won-denominated unsecured bond	Mar. 09, 2026	3.514 %	40,000	40,000
The 172-3rd Won-denominated unsecured bond	Sep. 09, 2026	3.474 %	30,000	30,000

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KT Corporation and Its Subsidiaries

Notes to the Consolidated Interim Financial Statements

As of March 31, 2025 and 2024, and December 31, 2024

(In millions of Korean won and foreign currencies in thousands) — Type	Maturity	Annual interest rates	Korean won	Korean won
The 173-1st Won-denominated unsecured bond	Sep. 23, 2027	3.291 %	60,000	60,000
The 173-2nd Won-denominated unsecured bond	Sep. 24, 2027	3.291 %	50,000	50,000
The 173-3rd Won-denominated unsecured bond	Oct. 22, 2027	3.292 %	40,000	40,000
The 174th Won-denominated unsecured bond	Nov. 10, 2025	3.339 %	60,000	60,000
The 175-1st Won-denominated unsecured bond	Dec. 10, 2025	3.169 %	50,000	50,000
The 175-2nd Won-denominated unsecured bond	Dec. 10, 2027	3.101 %	50,000	50,000
The 176th Won-denominated unsecured bond	Dec. 18, 2026	3.134 %	70,000	70,000
The 177-1st Won-denominated unsecured bond	Jul. 09, 2027	3.097 %	70,000
The 177-2nd Won-denominated unsecured bond	Jul. 12, 2027	3.097 %	70,000
The 177-3rd Won-denominated unsecured bond	Jan. 09, 2029	3.115 %	30,000
The 177-4th Won-denominated unsecured bond	Jan. 09, 2030	3.140 %	40,000
The 178-1st Won-denominated unsecured bond	Feb. 28, 2029	3.026 %	50,000
The 178-2nd Won-denominated unsecured bond	Feb. 28, 2030	3.087 %	30,000
The 179-1st Won-denominated unsecured bond	Sep. 23, 2027	3.013 %	10,000
The 179-2nd Won-denominated unsecured bond	Sep. 24, 2027	3.013 %	40,000
The 179-3rd Won-denominated unsecured bond	Mar. 24, 2028	3.038 %	50,000
The 179-4th Won-denominated unsecured bond	Mar. 25, 2030	3.126 %	20,000

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KT Corporation and Its Subsidiaries

Notes to the Consolidated Interim Financial Statements

As of March 31, 2025 and 2024, and December 31, 2024

(In millions of Korean won and foreign currencies in thousands) — Type	Maturity	Annual interest rates	Korean won		Foreign currency	Korean won
The 179-5th Won-denominated unsecured bond	Sep. 25, 2030	3.178 %		20,000
Subtotal				9,060,828			9,154,000
Less: Current portion				(2,872,327	)		(3,073,474	)
Discount on bonds				(22,252	)		(24,177	)
Total			W	6,166,249		W	6,056,349

1 As of March 31, 2025, the Controlling Company has outstanding notes in the amount of USD 100 million with fixed interest rates under Medium Term Note Program (MTNP) registered on the Singapore Stock Exchange, which allowed issuance of notes of up to USD 2,000 million. However, the MTNP was terminated in 2007.

2 The CMS (10Y) is approximately 2.630%, as of March 31, 2025.

2) Convertible bonds

(In millions of Korean won) — Type	Issuance Date	Maturity	March 31, 2025
The 1st CB (Private) 1	Jun. 5, 2020	Jun. 5, 2025	W	8,000
Redemption premium				2,267
Conversion rights adjustment				(580	)
Subtotal				9,687
Less: Current portion				(9,687	)
Total			W

1 Convertible bond was fully redeemed for the three-month period ended March 31, 2025.

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KT Corporation and Its Subsidiaries

Notes to the Consolidated Interim Financial Statements

As of March 31, 2025 and 2024, and December 31, 2024

3) Borrowings

a. Short-term borrowings

(In millions of Korean won) — Type	Financial institution	Annual interest rates	March 31, 2025		December 31, 2024
			Foreign currency	Korean won	Foreign currency	Korean won
Operational	Shinhan Bank 1
		5.430%		W	5,000	W	5,000
		5.840%			2,000
							79,090
		CD(91D)+0.800%~CD(91D)+1.800%			86,900		16,900
		FB(6M)+2.850%~ FB(6M)+2.860%			8,990
		Term SOFR(3M)+1.580%	USD 35,000		51,328
	Woori Bank 1	4.230%~4.280%			48,000		48,000
		4.620%			20,000		20,000
							3,950
		FB(1Y)+0.730%			70,000		70,000
	Korea Development Bank 1	4.680%			17,000		35,000
		KDB Bond(1Y)+2.640%			8,000
	Industrial Bank of Korea	4.340%			6,000		6,000
	Hana Bank 1	FB(6M)+1.988%			5,000
	KB SECURITIES	3.630%			120,000		120,000
	NongHyup Bank 1						14,200
		MOR(6M)+1.770%			1,000
	Standard Chartered Bank Korea 1	CD(91D)+0.750%			32,000		32,000
	Korea Investment & Securities	3.130%			70,000
	Kiwoom Securities	3.130%			10,000
	Shinhan Investment & Securities	2.940%			97,465
	BCA	8.500%	IDR 692,024		61
Total				W	658,744	W	450,140

1 As of March 31, 2025, CD(91D), Financial Bond (6M), Term SOFR(3M), Financial Bond (1Y), KDB bond (1Y), and MOR (6M) were approximately 2.840%, 2.853%, 4.288%, 2.842%, 2.807% and 2.850%, respectively.

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KT Corporation and Its Subsidiaries

Notes to the Consolidated Interim Financial Statements

As of March 31, 2025 and 2024, and December 31, 2024

b. Long-term borrowings

(In millions of Korean won and thousands of foreign currencies) — Financial institution	Type	Annual interest rates	March 31, 2025 — Foreign currency		Korean won		Foreign currency		Korean won
Export-Import Bank of Korea	Inter-Korean Cooperation Fund 1	1.00%			W	740			W	987
CA-CIB	General loans	3.020%~3.820%				200,000				100,000
JPM	General loans									100,000
DBS	General loans	2.980%~3.820%				200,000				100,000
Shinhan Bank	General loans	4.090%				100,000				100,000
	General loans 2	Term SOFR(3M)+1.300%	USD	21,127		30,982	USD	21,127		31,056
	General loans 2	Term SOFR(3M)+1.700%	USD	8,910		13,067	USD	8,910		13,098
	General loans 3	4.490%				62,398				62,398
	General loans						USD	35,000		51,450
Woori Bank	General loans 2	EURIBOR(3M)+0.950%	EUR	6,900		10,956	EUR	6,900		10,548
	PF loans 2	CD(91D)+1.750%				25,526
	General loans									26,526
Hi Investment & Securities	CP	2.302%				95,912				95,321
Korea Investment & Securities	CP	3.622%				79,702				78,933
Korea Development Bank	General loans	4.740%~4.960%				33,000				33,000
KDB Bank Uzbekistan	loans 4	23.000%	UZS	45,017,739		4,952	UZS	45,448,426		4,999
	loans 4	10.300%	USD	5,400		7,738	USD	5,400		7,725
NH Jayang	PF loans									8,366
Kyobo Life Insurance	PF loans									44,385
Standard Chartered Bank Korea	PF loans									29,590
	PF loans	4.700%				65,000
Samsung Life Insurance	PF loans									24,658
Kookmin Bank	General loans	4.750%				8,000				8,000
NongHyup Bank	PF loans	4.700%				170,000
Korea Investment Capital	PF loans	8.000%				8,500
Korea Investment Savings Bank	PF loans	8.000%				1,500
DHG 1st	PF loans	10.000%				10,000
Industrial Bank of Korea	PF loans	4.700%				65,000
Hana Bank and others	PF loans	4.700%				279,252
Subtotal						1,472,225				931,040
Less: Current portion						(118,018	)			(371,451	)
Total					W	1,354,207			W	559,589

1 The above Inter-Korean Cooperation Fund is repayable in installments over 13 years after a 7-year grace period.

2 EURIBOR (3M), Term SOFR (3M) and CD (91D) are approximately 2.336%, 4.288%, 2.840% respectively, as of March 31, 2025.

3 The general loans are repayable in installments over 4 years after a three-year grace period.

4 The general loans are repayable in installments over 3 years after a two-year grace period.

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KT Corporation and Its Subsidiaries

Notes to the Consolidated Interim Financial Statements

As of March 31, 2025 and 2024, and December 31, 2024

(2) Repayment schedule of the Groups debentures and borrowings including the portion of current liabilities as of March 31, 2025, is as follows:

(In millions of Korean won)
	Bonds			Borrowings			Total
	In local currency	In foreign currency	Sub- total	In local currency	In foreign currency	Sub- total
Apr. 1, 2025 ~ Mar. 31, 2026	W	1,555,000	1,319,850	2,874,850	701,382	75,380	776,762	3,651,612
Apr. 1, 2026 ~ Mar. 31, 2027		770,000	1,255,300	2,025,300	919,010	30,982	949,992	2,975,292
Apr. 1, 2027 ~ Mar. 31, 2028		1,210,000	799,028	2,009,028	342,599	4,230	346,829	2,355,857
Apr. 1, 2028 ~ Mar. 31, 2029		455,000		455,000	15,600	4,230	19,830	474,830
After Apr. 1, 2029		1,550,000	146,650	1,696,650	33,326	4,230	37,556	1,734,206
Total	W	5,540,000	3,520,828	9,060,828	2,011,917	119,052	2,130,969	11,191,797

Provisions

Changes in provisions the three-month period ended March 31, 2025 and 2024, are as follows:

(In millions of Korean won)	2025 — Litigation		Restoration cost		Others		Total
Beginning balance	W	21,690		141,761		60,956		224,407
Increase (transfer)		27		1,607		8,949		10,583
Usage		(27	)	(758	)	(7,673	)	(8,458	)
Reversal				(157	)	(265	)	(422	)
Others				11				11
Ending balance	W	21,690		142,464		61,967		226,121
Less: Current	W	(21,690	)	(32,591	)	(60,165	)	(114,446	)
Non-current				109,873		1,802		111,675
	2024
(In millions of Korean won)	Litigation		Restoration cost		Others		Total
Beginning balance	W	29,707		133,159		59,357		222,223
Increase (transfer)				226		2,135		2,361
Usage		(2,145	)	(301	)	(2,075	)	(4,521	)
Reversal		(3,009	)	(355	)	(463	)	(3,827	)
Ending balance	W	24,553		132,729		58,954		216,236
Less: Current	W	(24,498	)	(25,222	)	(58,855	)	(108,575	)
Non-current		55		107,507		99		107,661

Table of Contents

KT Corporation and Its Subsidiaries

Notes to the Consolidated Interim Financial Statements

As of March 31, 2025 and 2024, and December 31, 2024

Net Defined Benefit Liabilities (Assets)

(1) The amounts recognized in the statements of financial position as of March 31, 2025 and December 31, 2024, are determined as follows:

(In millions of Korean won) — Present value of defined benefit obligations	March 31, 2025 — W	2,288,205		2,232,898
Fair value of plan assets		(2,136,691	)	(2,153,792	)
Liabilities	W	181,693		128,457
Assets	W	30,179		49,351

(2) Changes in the defined benefit obligations for the three-month period ended March 31, 2025 and 2024, are as follows:

(In millions of Korean won) — Beginning	2025 — W	2,232,898		2,365,793
Current service cost		57,056		55,015
Interest expense		16,408		20,948
Benefit paid		(27,072	)	(35,330	)
Remeasurements on defined benefit obligations:		11,186		2,141
Changes in scope of consolidation		(4,636	)
Others		2,365		(19	)
Ending	W	2,288,205		2,408,548

(3) Changes in the fair value of plan assets for the three-month period ended March 31, 2025 and 2024, are as follows:

(In millions of Korean won) — Beginning	2025 — W	2,153,792		2,462,925
Interest income		16,794		22,766
Remeasurements on plan assets:		596		879
Employer contributions		1,311
Benefits paid		(29,672	)	(39,293	)
Changes in scope of consolidation		(5,588	)
Others		(542	)	744
Ending	W	2,136,691		2,448,021

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KT Corporation and Its Subsidiaries

Notes to the Consolidated Interim Financial Statements

As of March 31, 2025 and 2024, and December 31, 2024

(4) Amounts recognized in the consolidated statement of profit or loss for the three-month period ended March 31, 2025 and 2024, are as follows:

(In millions of Korean won) — Current service cost	2025 — W	57,056		55,015
Net interest income		(386	)	(1,818	)
Transfer out		(3,383	)	(3,710	)
Total expenses	W	53,287		49,487

Commitments and Contingencies

(1) As of March 31, 2025, major commitments with local financial institutions are as follows:

(In millions of Korean won and foreign currencies in thousands)	Financial institution	Limit	Used amount
Bank overdraft	Kookmin Bank and others	W 374,000
Inter-Korean Cooperation Fund	Export-Import Bank of Korea	37,700	740
Economic Cooperation Business Insurance	Export-Import Bank of Korea	3,240	1,732
Collateralized loan on electronic accounts receivable-trade	Kookmin Bank and others	541,650	29,630
Plus electronic notes payable	Industrial Bank of Korea	50,000	110
Working capital loan	Korea Development Bank and others	1,562,440	282,890
	Shinhan Bank	USD 65,037	USD 65,037
	Woori Bank	EUR 6,900	EUR 6,900
Facility loans	Shinhan Bank and others	794,000	667,924
Derivatives transaction limit	Korea Development Bank and others	USD 2,120,000	USD 2,120,000
	Shinhan Bank and others	JPY 30,000,000	JPY 30,000,000
Total	KRW	3,363,030	983,026
	USD	2,185,037	2,185,037
	EUR	6,900	6,900
	JPY	30,000,000	30,000,000

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KT Corporation and Its Subsidiaries

Notes to the Consolidated Interim Financial Statements

As of March 31, 2025 and 2024, and December 31, 2024

(2) As of March 31, 2025, guarantees received from financial institutions and others are as follows:

(In millions of Korean won and foreign currencies in thousands)	Financial institution	Limit
Hana Bank	Guarantee for payment in Korean currency	4,000
	Comprehensive credit line and others	2,900
	Comprehensive credit line and others	USD 10,300
Kookmin Bank	Guarantee for payment in foreign currency	USD 3,186
Shinhan Bank	Guarantee for payment in Korean currency	710
	Refund guarantee for advances received	USD 21,800
	Guarantee for payment in foreign currency	USD 77,043
	Corporate card issuance guarantee	VND 231,830
Woori Bank	Guarantee for payment in Korean currency	100
	Guarantee for payment in foreign currency	USD 7,000
	Performance guarantee and others	USD 270
	Guarantee for payment in foreign currency	EUR 6,900
HSBC	Guarantees for depositions	USD 811
Seoul Guarantee Insurance Company	Performance guarantee and others	414,441
Korea Software Financial Cooperative	Performance guarantee and others	1,585,679
Korea Specialty Contractor Financial Cooperative	Performance guarantee and others	135
Korea Housing Finance Corporation	Performance guarantee and others	25,526
Korea Housing & Urban Guarantee
Corporation 1	Performance guarantee and others	693,902
Information & Communication Financial Cooperative	Performance guarantee and others	834,978
Total	KRW	3,562,371
	USD	120,410
	EUR	6,900
	VND	231,830

1 Inventory assets ( W 386,036 million) and investment properties ( W 541,114 million) are provided as collateral with commitment respectively, as of March 31, 2025.

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KT Corporation and Its Subsidiaries

Notes to the Consolidated Interim Financial Statements

As of March 31, 2025 and 2024, and December 31, 2024

(3) As of March 31, 2025, guarantees provided by the Group to third parties are as follows:

(In millions of Korean won)	Subject to payment guarantees	Creditor	Limit	Used amount	Period
KT Estate Inc	Wonju Bando U-bora Mark Bridge Buyer	Hana Bank	103,000	227	Aug. 5, 2022 ~ Feb. 28, 2025
kt Nasmedia, Co., Ltd. (formerly. Nasmedia, Co., Ltd.)	Stockholders Association Members	Korea Securities Finance Corp	414	247

(4) The Controlling Company is jointly and severally obligated with KT Sat Co., Ltd., a subsidiary, to pay KT Sat Co., Ltd.s liabilities incurred prior to spin-off. As of March 31, 2025, the Controlling Company and KT Sat Co., Ltd. are jointly and severally liable for reimbursement of W 428 million.

(5) For the three-month period ended March 31, 2025, the Group entered into agreements with the Securitization Specialty Companies (2025: First 5G 79 th Securitization Specialty Co., Ltd., 2024: First 5G 73 rd to 78 th Securitization Specialty Co., Ltd.) and disposed of its trade receivables related to handset sales. The Group also made asset management agreements with each securitization specialty company and in accordance with the agreement, the Group will receive asset management fees upon liquidation of the securitization specialty company.

(6) As of March 31, 2025, the Group is a defendant in 165 lawsuits with a total claimed amount of W 140,006 million (as of December 31, 2024: W 141,941 million). As of March 31, 2025, litigation provisions of W 21,690 million for pending lawsuits and unasserted claims are recorded as liabilities for potential loss in the ordinary course of business. The final outcomes of the cases cannot be estimated as of March 31, 2025 (Note 13).

(7) Under the agreement of bond issuance and borrowings, the Group is required to maintain certain financial ratios such as debt-to-equity ratio, use the funds for the designated purpose and report to the creditors periodically. The covenant also contains restriction on provision of additional collateral and disposal of certain assets.

(8) As of March 31, 2025, the Group participates in Algerie Sidi Abdela new town development consortium (percentage of ownership: 2.5%) and has joint liability with other consortium participants.

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KT Corporation and Its Subsidiaries

Notes to the Consolidated Interim Financial Statements

As of March 31, 2025 and 2024, and December 31, 2024

(9) As of March 31, 2025, the contract amount of properties and equipments acquisition agreement made but not yet recognized amounts to W 352,743 million (as of December 31, 2024: W 350,949 million).

(10) As of March 31, 2025, there are derivatives generated by the Group granting Drag-Along Right to financial investors participating in paid-in capital increase of K Bank Inc. (Note 6).

(11) The Group entered into an agreement with financial investors of Epsilon Global Communications Pte regarding the acquisition of shares contract. If certain conditions are not met in the future as disclosed in the terms and conditions of the agreement, financial investors may exercise Tag-Along Right, Drag-Along Right, and the right to sell shares for the convertible preferred shares they hold (Note 6).

(12) The Group has an obligation for additional contributions as per agreement to Storm Ventures FUND VII and others. As of March 31, 2025, remaining amounts of USD 32,900 thousand and JPY 240,000 thousand will be invested through the Capital Call method in the future.

(13) The Group has an amount of W 201,615 million (40%) of joint responsibility obligation and W 302,423 million (60%) of obligation to provide financial support as a construction investor during the construction period with respect to K Defense Co., Ltd. established in accordance with the Private Investment Act on Social Infrastructure. During the operating period, the Group has the amount of W 438,312 million (100%) of obligation to provide financial support as an operating investor.

(14) The Group has an agreement related to a stock sale contract with HYUNDAI MOBIS Co., Ltd., and HYUNDAI MOTOR COMPANY. If the Company intends to dispose of the acquired stocks to a third party after a certain period has elapsed from the date of the contract and the acquired stocks are to be disposed to a third party, HYUNDAI MOBIS Co., Ltd., and HYUND AI MOTOR COMPANY may exercise a preferential purchase right to designate a buyer with priority.

(15) The Group entered into an agreement with equity investors who participated in the equity acquisition contract of kt Cloud Co., Ltd. According to this agreement, if conditions per the agreement are met, the financial investor may exercise a Tag-Along or a Put-Option to the Group in the future. In relation to this contract, the Group and the financial investor may settle mutual profits if there is a difference between the final public offering price and the preliminary public offering price (Note 6).

(16) The Group has the obligation of paying Minimum Guarantee as utilizing product bundling of Tving Co., Ltd., and the right to be paid a certain proportion of the excess as per agreement.

(17) As of March 31, 2025, the Group is in the progress of exercising a put option under the shareholders agreement with the Rwandan government.

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KT Corporation and Its Subsidiaries

Notes to the Consolidated Interim Financial Statements

As of March 31, 2025 and 2024, and December 31, 2024

(18) Details of properties and equipment and investment properties provided as collateral as of March 31, 2025 and December 31, 2024, are as follows:

(in millions of Korean won) — Collateral	March 31, 2025 — Carrying amount	Secured amount		Related account	Related amount	Mortgagee
Land and buildings	W	1,193,560	852,294	Borrowings	670,416	Industrial Bank of Korea/Shinhan Bank/Standard Chartered Bank and others
Land and buildings		541,890	68,045	Deposits received	57,987	leaseholder
(in millions of Korean won)	December 31, 2024
Collateral	Carrying amount	Secured amount		Related account	Related amount	Mortgagee
Land and buildings	W	79,959	76,668	Borrowings	63,890	Industrial Bank of Korea/Shinhan Bank/Standard Chartered Bank
Land and buildings		541,351	68,019	Deposits received	58,062	leaseholder

(19) The Group has established supplier finance agreements with some suppliers, and suppliers participating in the supplier finance agreement can receive early payment on invoices sent to the Group from the Groups external finance provider. The Group pays the finance provider in accordance with the usual payment terms to settle the debt. As of March 31, 2025, all financial liabilities subject to the supplier finance agreement are included in trade and other payables, and the carrying amount is W 11,245 million (as of December 31, 2024: W 16,081 million). Of these, the carrying amount of the part that the suppliers have already received from the finance provider is W 2,867 million (as of December 31, 2024: W 9,746 million). There were no significant non-cash changes in the carrying amount of the trade and other payables included in the Groups supplier finance agreement.

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KT Corporation and Its Subsidiaries

Notes to the Consolidated Interim Financial Statements

As of March 31, 2025 and 2024, and December 31, 2024

Leases

Information for leases when the Group acts as a lessee is as follows. Information on leases when the Group acts as a lessor is described in Note 9.

(1) Amounts recognized in the consolidated statement of financial position

The consolidated statements of financial position shows the following amounts relating to leases:

(In millions of Korean won)	March 31, 2025
Right-of-use assets
Property and building	W	937,771	950,940
Machinery and communication line facilities		116,118	103,672
Others		157,985	158,158
Total	W	1,211,874	1,212,770

(In millions of Korean won)	March 31, 2025
Lease liabilities 1
Current	W	362,161	349,264
Non-current		696,625	710,189
Total	W	1,058,786	1,059,453

1 Included in the line item other current liabilities and other non-current liabilities in the consolidated statements of financial position (Note 8).

For the three-month periods ended March 31, 2025 and 2024, right-of-use assets related to leases increased by W 105,804 million and W 46,479 million, respectively.

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KT Corporation and Its Subsidiaries

Notes to the Consolidated Interim Financial Statements

As of March 31, 2025 and 2024, and December 31, 2024

(2) Amounts recognized in the consolidated statement of profit or loss

The consolidated statement of profit or loss relating to leases for the three-month period March 31, 2025 and 2024, are as follows:

(In millions of Korean won)	2025
Depreciation of right-of-use assets
Property and building	W	78,822	74,733
Machinery and communication line facilities		6,337	6,551
Others		19,338	21,622
Total	W	104,497	102,906
Interest expense relating to lease liabilities	W	9,701	12,969
Expense relating to short-term leases		3,493	2,144
Expense relating to leases of low-value assets that are
not short-term leases		6,132	5,132
Expense relating to variable lease payments not included in lease liabilities		3,346	4,576

The total cash outflow for leases for the three-month periods ended March 31, 2025 and 2024, is W 118,636 million and W 121,034 million, respectively.

Retained Earnings

Details of retained earnings as of March 31, 2025 and December 31, 2024, are as follows:

(In millions of Korean won) — Legal reserve 1	March 31, 2025 — W	782,249	782,249
Voluntary reserves 2		4,651,362	4,651,362
Unappropriated retained earnings		8,763,832	8,346,165
Total	W	14,197,443	13,779,776

1 The Commercial Code of the Republic of Korea requires the Controlling Company to appropriate, as a legal reserve, an amount equal to a minimum of 10% of cash dividends paid until such reserve equals 50% of its issued share capital. The reserve is not available for the payment of cash dividends but may be transferred to share capital with the approval of the Controlling Companys Board of Directors or used to reduce accumulated deficit, if any, with the ratification of the Controlling Companys majority shareholders.

2 The reserves of research and development of human resources in other surplus reserves are separately accumulated on disposal of retained earnings on tax filing adjustments when calculating income taxes in accordance with regulations of Tax Reduction and Exemption Control Act of Korea. Reversal of the reserves according to the relevant tax law can be paid out as dividends.

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KT Corporation and Its Subsidiaries

Notes to the Consolidated Interim Financial Statements

As of March 31, 2025 and 2024, and December 31, 2024

Other Components of Equity

(1) The Groups other components of equity, as of March 31, 2025 and December 31, 2024, are as follows:

(In millions of Korean won) — Treasury stock	March 31, 2025 — W	(262,407	)	(215,210	)
Gain on disposal of treasury stock		2,919		2,862
Share-based compensation		8,869		7,106
Equity transactions within consolidated entities 1		(426,220	)	(432,318	)
Total	W	(676,839	)	(637,560	)

1 Profit or loss incurred from transactions with non-controlling interest and investment difference incurred from change in proportion of subsidiaries are included.

(2) As of March 31, 2025 and December 31, 2024, the details of treasury stock, are as follows:

Number of shares (in shares)	March 31, 2025	7,148,677	6,188,739
Amount (in millions of Korean won)	W	262,407	215,210

Treasury stock held as of March 31, 2025, is expected to be used for stock compensation for the Groups directors, employees, and for other purposes.

Revenue from Contracts with Customers and Relevant Contract Assets and Liabilities

(1) The Group has recognized the following amounts as revenue for the three-month periods ended March 31, 2025 and 2024:

(In millions of Korean won) — Revenue from contracts with customers	2025 — W	6,785,075	6,597,842
Revenue from other sources		60,042	56,732
Total	W	6,845,117	6,654,574

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KT Corporation and Its Subsidiaries

Notes to the Consolidated Interim Financial Statements

As of March 31, 2025 and 2024, and December 31, 2024

(2) Operating revenues for the three-month periods ended March 31, 2025 and 2024, are as follows:

(In millions of Korean won) — Services provided	2025 — W	5,700,395	5,722,650
Sales of goods		1,144,722	931,924
Total	W	6,845,117	6,654,574

Revenue from providing services is recognized over time and revenue from sales of goods is recognized at a point in time. Revenues from construction commitments included in sales of goods are recognized using the percentage of completion method.

(3) The contract assets, liabilities and deferred revenue recognized in relation to the revenues from contracts with customers are as follows:

(In millions of Korean won) — Contract assets 1	956,739	977,514
Contract liabilities 1	951,471	1,089,146
Deferred revenue 2	92,995	87,209

1 The Group recognized contract assets of W 150,465 million and contract liabilities of W 659,023 million for long-term construction contracts as of March 31, 2025 (December 31, 2024: contract assets of W 176,708 million and contract liabilities of W 815,826 million). The Group recognizes contract assets as trade receivables and other receivables, and contract liabilities as other current liabilities.

2 Deferred revenue related to government grant is excluded.

(4) The contract costs recognized as assets are as follows:

(In millions of Korean won) — Incremental costs of obtaining a contract	March 31, 2025 — W	1,714,983	1,666,042
Cost of contract performance		72,572	72,122
Total	W	1,787,555	1,738,164

As of March 31, 2025, the Group recognized W 431,336 million (three-month period ended March 31, 2024: W 431,034 million) of operating expenses related to contract cost assets.

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KT Corporation and Its Subsidiaries

Notes to the Consolidated Interim Financial Statements

As of March 31, 2025 and 2024, and December 31, 2024

(5) For the three-month periods ended March 31, 2025 and 2024, revenue recognized from contract liabilities and deferred revenue carried-forward from prior year, is as follows:

(In millions of Korean won)	2025
Revenue recognized from the beginning balance of contract liabilities
Allocation of the transaction price	W	63,915	68,560
Deferred revenue of joining/installment fees		12,485	11,869
Total	W	76,400	80,429

Operating Expenses

(1) Operating expenses for the three-month periods ended March 31, 2025 and 2024, are as follows:

(In millions of Korean won) — Employee benefit cost	2025 — W	1,121,835	1,100,923
Depreciation		715,828	703,836
Depreciation of right-of-use assets		104,497	102,906
Amortization of intangible assets		148,351	166,943
Commissions		394,628	353,008
Interconnection charges		97,365	109,926
International interconnection fees		30,940	36,860
Purchase of inventories		833,388	892,357
Changes of inventories		86,324	13,124
Sales commissions		568,686	566,370
Service cost		600,399	562,041
Utilities		136,783	134,371
Taxes and dues		64,441	65,291
Rent		39,123	37,138
Insurance premium		17,150	18,137
Installation fee		45,839	37,831
Advertising expenses		32,250	32,055
Research and development expenses		61,413	51,034
Card service costs		672,645	741,902
Others		384,461	422,021
Total	W	6,156,346	6,148,074

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KT Corporation and Its Subsidiaries

Notes to the Consolidated Interim Financial Statements

As of March 31, 2025 and 2024, and December 31, 2024

(2) Details of employee benefits for the three-month periods ended March 31, 2025 and 2024, are as follows:

(In millions of Korean won) — Salaries & Wages	2025 — W	1,036,195	1,019,719
Post-employment benefits (defined benefit plan)		53,287	49,487
Post-employment benefits (defined contribution plan)		20,722	21,529
Share-based payment		2,340	2,919
Others		9,291	7,269
Total	W	1,121,835	1,100,923

Other Income and Other Expenses

(1) Other income for the three-month periods ended March 31, 2025 and 2024, are as follows:

(in millions of Korean won) — Gain on disposal of property and equipment and investment properties	2025 — W	9,832	17,317
Gain on disposal of intangible assets		1,641	112
Gain on disposal of right-of-use assets		939	291
Compensation on impairment of property and equipment		17,566	30,085
Income from government subsidies		45	9,351
Gain on disposal of investments in associates		7,481
Gain on disposal of subsidiaries		10,156
Others		17,702	15,682
Total	W	65,362	72,838

(2) Other expenses for the three-month periods ended March 31, 2025 and 2024, are as follows:

(in millions of Korean won) — Loss on disposal of properties and equipment	2025 — W	14,548	15,644
Loss on disposal of intangible assets		1,868	6,095
Loss on disposal of right-of-use assets		907	294
Loss on disposal of subsidiaries		403
Donations		3,731	3,753
Other allowance for bad debts		4,452	9,905
Others		11,901	34,681
Total	W	37,810	70,372

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KT Corporation and Its Subsidiaries

Notes to the Consolidated Interim Financial Statements

As of March 31, 2025 and 2024, and December 31, 2024

Financial Income and Costs

(1) Details of finance income for the three-month periods ended March 31, 2025 and 2024, are as follows:

(in millions of Korean won) — Interest income	2025 — W	66,266	77,747
Gain on foreign currency transactions		4,894	2,797
Gain on foreign currency translation		11,040	4,443
Gain on derivatives transactions		76
Gain on valuation of derivatives		16,495	129,544
Dividend income		28,803	31,046
Others		520	4,699
Total	W	128,094	250,276

(2) Details of finance costs for the three-month periods ended March 31, 2025 and 2024, are as follows:

(in millions of Korean won) — Interest expenses	2025 — W	93,083	103,824
Loss on foreign currency transactions		2,502	2,246
Loss on foreign currency translation		12,447	129,538
Loss on derivatives transactions		4,742
Loss on valuation of derivatives		8,561	93
Loss on disposal of trade receivables		1,015	362
Loss on valuation of financial instruments		138	760
Others		1,871	3,669
Total	W	124,359	240,492

Income Tax Expense

Income tax expense is recognized based on the best estimate of the weighted average annual income tax rate expected for the full financial year. The estimated average annual income tax rate used for the year ending December 31, 2025, is 20.4%

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KT Corporation and Its Subsidiaries

Notes to the Consolidated Interim Financial Statements

As of March 31, 2025 and 2024, and December 31, 2024

Earnings per Share

Basic earnings per share for the three-month periods ended March 31, 2025 and 2024, are calculated as follows:

(1) Basic Earnings per Share

Basic earnings per share is calculated by dividing the profit for the period by the weighted average number of ordinary shares outstanding during the period, excluding ordinary shares held by the Group as treasury stock.

| Profit attributable to ordinary shares of owners of the Controlling Company (in millions of
Korean won) | 2025 — W | 539,569 | 375,274 |
| --- | --- | --- | --- |
| Weighted average number of ordinary shares outstanding (in number of shares) | | 245,753,391 | 246,230,512 |
| Basic earnings per share (in Korean won) | W | 2,196 | 1,524 |

(2) Diluted Earnings per Share

Diluted earnings per share from operations is calculated by adjusting the weighted average number of ordinary shares outstanding assuming that all dilutive potential ordinary shares are converted into ordinary shares. The Group has dilutive potential ordinary shares from convertible bonds, convertible preferred stock and other share-based payments:

Profit attributable to ordinary shares (in millions of Korean won)	2025 — W	539,569		375,274
Adjusted net income attributable to ordinary shares (in millions of Korean won)		(257	)	(99	)
Diluted profit attributable to ordinary shares (in millions of Korean won)	W	539,312		375,175
Number of dilutive potential ordinary shares Outstanding 1 (in number of shares)		101,557		134,369
Weighted average number of ordinary shares outstanding (in number of shares)		245,854,948		246,364,881
Diluted earnings per share (in Korean won)	W	2,194		1,523

1 The dilutive potential common shares consist of share-based compensation.

Diluted earnings per share is calculated by dividing the profit for the period by the sum of the weighted average number of ordinary shares and dilutive potential ordinary shares. This calculation takes into account both ordinary shares and all dilutive potential shares.

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KT Corporation and Its Subsidiaries

Notes to the Consolidated Interim Financial Statements

As of March 31, 2025 and 2024, and December 31, 2024

Cash Generated from Operations

(1) Cash flows from operating activities for the three-month periods ended March 31, 2025 and 2024, are as follows:

(In millions of Korean won) — 1. Profit for the period	2025 — W	566,799		393,003
2. Adjustments for:
Income tax expense		145,031		135,985
Interest income 1		(93,923	)	(103,775	)
Interest expense 1		109,686		117,815
Dividends income 2		(29,046	)	(31,314	)
Depreciation		728,017		715,130
Amortization of intangible assets		150,238		170,080
Depreciation of right-of-use assets		104,497		102,906
Provisions for severance benefits (defined benefits)		56,670		53,197
Impairment losses on trade receivables		33,667		47,244
Share of net profit or loss of associates and joint ventures		8,384		(10,382	)
Gain on disposal of subsidiaries and associates		(17,234	)
Gain (loss) on disposal of property, equipment and investment properties		4,716		(1,673	)
Gain (loss) on disposal of right-of-use assets		(32	)	3
Loss on disposal of intangible assets		227		5,983
Impairment loss on intangible assets				22
Loss on foreign currency translation		1,423		125,053
Gain on valuation and settlement of derivatives		(4,294	)	(129,469	)
Loss on disposal of financial assets at amortized cost		18		1
Gain (loss) on disposal of financial assets at fair value through profit or loss		1,835		(4,465	)
Loss on valuation of financial assets at fair value through profit or loss 3		1,293		680
Others		9,784		51,655
3. Changes in operating assets and liabilities
Increase in trade receivables		(350,836	)	(346,449	)
Decrease (Increase) in other receivables		(297,319	)	144,246
Increase in other current assets		(316,140	)	(135,478	)
Decrease in other non-current assets		31,614		4,164
Decrease in inventories		141,528		30,780
Decrease in trade payables		(241,380	)	(77,085	)
Increase (decrease) in other payables		167,629		(207,987	)
Increase (decrease) in other current liabilities		(174,918	)	103,833
Increase in other non-current liabilities		4,390		1,158
Increase (decrease) in provisions		1,612		(1,448	)
Increase (decrease) in deferred revenue		29		(567	)
Decrease in plan assets		204,802		158,516
Payment of post-employment benefits (defined benefit)		(220,400	)	(142,301	)
4. Cash generated from operations (1+2+3)	W	728,367		1,169,061

1 Subsidiaries such as BC Card Co., Ltd. recognize interest income and expense as operating revenue and expense, respectively. Interest income of W 27,657 million (for the three-month period ended March 31, 2024: W 26,028 million) recognized as operating revenue and interest expense of W 16,603 million (for the three-month periods ended March 31, 2024: W 13,653 million) recognized as operating expense, for the three-month period ended March 31, 2025, are included in the adjustment.

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KT Corporation and Its Subsidiaries

Notes to the Consolidated Interim Financial Statements

As of March 31, 2025 and 2024, and December 31, 2024

2 BC Card Co., Ltd. recognized dividend income as operating revenue. Dividend income of W 228 million recognized as operating revenue for the three-month period ended March 31, 2025 (three-month period ended March 31, 2024: W 268 million) is included in the adjustment.

3 Subsidiaries such as KT Investment Co., Ltd. recognized gain and loss on valuation of financial assets at fair value through profit or loss as operating revenue and expense, respectively. Net loss on valuation of financial assets at fair value through profit or loss of W 1,401 million (for the three-month period ended March 31, 2024: net loss on valuation of financial assets at fair value through profit or loss of W 154 million) that is recognized as operating revenue and expense, for the three-month period ended March 31, 2025, is included in the adjustment.

(2) Significant transactions not affecting cash flows for the three-month periods ended March 31, 2025 and 2024, are as follows:

(In millions of Korean won) — Reclassification of current portion of borrowings	613,630		1,161,055
Reclassification of construction-in-progress to property and equipment	665,171		374,345
Change of other payables relating to acquisition of property and equipment	(416,484	)	(111,505	)
Change of other payables relating to acquisition of intangible assets	(274,591	)	(279,767	)
Reclassification of other payables from net defined benefit liabilities	(17,587	)	12,542
Increase in dividend payable	141,408		503,555

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KT Corporation and Its Subsidiaries

Notes to the Consolidated Interim Financial Statements

As of March 31, 2025 and 2024, and December 31, 2024

Changes in Liabilities Arising from Financing Activities

Details of changes in liabilities arising from financing activities, liabilities related to cashflow to be classified as future financing activities, for the three-month periods ended March 31, 2025 and 2024, are as follows:

(In millions of Korean won)	2025
					Others
	Beginning		Cash flows		Acquisition	Changes in FX rate		Fair value change		Other changes		Ending
Borrowings	W	10,520,691		646,953		22,990	(4,468	)			(16,621	)	11,169,545
Lease liabilities		1,059,453		(97,790	)	138,670			20		(41,567	)	1,058,786
Derivative liabilities		3							11				14
Derivative assets		(445,471	)	(3,724	)				(19,444	)	4,427		(464,212	)
Total	W	11,134,676		545,439		161,660	(4,468	)	(19,413	)	(53,761	)	11,764,133
(In millions of Korean won)	2024
					Others
	Beginning		Cash flows		Acquisition	Changes in FX rate		Fair value change		Other changes		Ending
Borrowings	W	10,218,165		(195,023	)		122,762				5,486		10,151,390
Lease liabilities		1,179,909		(97,006	)	79,897			238		(39,327	)	1,123,711
Derivative liabilities		24,547					93		394		(22,417	)	2,617
Derivative assets		(159,211	)				(113,078	)	1,700		22,417		(248,172	)
Total	W	11,263,410		(292,029	)	79,897	9,777		2,332		(33,841	)	11,029,546

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KT Corporation and Its Subsidiaries

Notes to the Consolidated Interim Financial Statements

As of March 31, 2025 and 2024, and December 31, 2024

Segment Information

(1) The management of the Group determines the operating segments based on the reported information when establishing the business strategy.

Details	Business service
ICT	Mobile/fixed line telecommunication service and convergence business, B2B business and others
Finance	Credit card business
Satellite TV	Satellite TV business
Real estate	Residential building development and supply
Others	IT, facility security, global business, and others

(2) Details of each segment for the three-month periods ended March 31, 2025 and 2024, are as follows:

(in millions of Korean won)	2025 — Operating revenues		Operating income	Depreciation and amortization 1
ICT	W	4,682,007		400,114	810,484
Finance		825,492		53,517	7,890
Satellite TV		169,597		13,152	11,378
Real estate		133,238		16,099	16,794
Others		2,352,422		176,996	154,487
Subtotal		8,162,756		659,878	1,001,033
Elimination		(1,317,639	)	28,893	(32,357	)
Consolidated amount	W	6,845,117		688,771	968,676

1 Sum of the depreciation and amortization of property and equipment, intangible assets, investment properties and right-of-use assets.

(in millions of Korean won)	2024
	Operating revenues		Operating income		Depreciation and amortization 1
ICT	W	4,694,828		393,773		805,302
Finance		873,917		32,698		8,494
Satellite TV		177,884		12,962		12,371
Real estate		134,823		17,804		18,180
Others		1,996,008		56,560		151,297
Subtotal		7,877,460		513,797		995,644
Elimination		(1,222,886	)	(7,297	)	(21,959	)
Consolidated amount	W	6,654,574		506,500		973,685

1 Sum of the depreciation and amortization of property and equipment, intangible assets, investment properties and right-of-use assets.

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KT Corporation and Its Subsidiaries

Notes to the Consolidated Interim Financial Statements

As of March 31, 2025 and 2024, and December 31, 2024

(3) Operating revenues for the three-month periods ended March 31, 2025 and 2024, and non-current assets as of March 31, 2025 and December 31, 2024, by geographical regions, are as follows:

(in millions of Korean won) — Location	Operating revenues — 2025	2024	March 31, 2025	December 31, 2024
Domestic	W	6,799,776	6,612,419	20,074,129	20,021,125
Overseas		45,341	42,155	185,267	179,815
Total	W	6,845,117	6,654,574	20,259,396	20,200,940

1 Sum of property and equipment, intangible assets, investment properties and right-of-use assets.

Related Party Transactions

(1) The list of related party of the Group as of March 31, 2025, is as follows:

Relationship	Name of Entity
Associates and joint ventures	49 entities such as K Bank Inc., KIF Investment Fund, Megazone Cloud Corporation, and KIAMCO Data Center Development Real Estate General Private Placement Investment Blind Trusts
Others 1	Goody Studio Co., Ltd., Rebellion Inc., Digital Pharm Co., Ltd., Mastern No.127 Logispoint Daegu Co., KORAMKO No. 143 General Private Real Estate Investment Company and others

1 Included within the scope of related parties under Korean IFRS 1024 due to the presence of significant influence, even though treated in accordance with Korean IFRS 1109.

(2) Outstanding balances of receivables and payables in relations to transactions with related parties as of March 31, 2025 and December 31, 2024, are as follows:

(In millions of Korean won)		March 31, 2025
		Receivables		Payables
Relationship	Name of Entity	Trade receivables	Other receivables	Trade payables	Other payables	Lease liabilities
Associates and joint ventures	K Bank, Inc.	W	1,401	122,253		868
	Little Big Pictures		235	1,396		17
	K-Realty 11th Real Estate Investment Trust Company		50	1,283			2,883
	K-Realty No.3 Real Estate General Private Placement Investment		15,875
	Others		4,848	2,645	149	1,535
Others	Others		138	192	1
	Total	W	22,547	127,769	150	2,420	2,883

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KT Corporation and Its Subsidiaries

Notes to the Consolidated Interim Financial Statements

As of March 31, 2025 and 2024, and December 31, 2024

(In millions of Korean won)		December 31, 2024
		Receivables		Payables
Relationship	Name of Entity	Trade receivables	Other receivables	Trade payables	Other payables	Lease liabilities
Associates and joint ventures	K Bank, Inc.	W	778	147,868		83
	Little Big Pictures		235	1,396		2
	K-Realty 11th Real Estate Investment Trust Company		113	1,283			4,588
	K-Realty No.3 Real Estate General Private Placement Investment		7,911
	Others		2,439	1,628	1,302	1,326
Others	Others		138	240	1
	Total	W	11,614	152,415	1,303	1,411	4,588

(3) Significant transactions with related parties for the three-month periods ended March 31, 2025 and 2024, are as follows:

(In millions of Korean won)		2025
		Sales		Purchases		Acquisition of right-of-use assets
Relationship	Name of Entity	Operating revenue	Other income	Operating expenses	Others 1
Associates and joint ventures	K Bank, Inc.	W	8,509		6,094
	HD Hyundai Robotics Co., Ltd.		19
	K-Realty 11th Real Estate Investment Trust Company		9	50	595
	K-Realty No.3 Real Estate General Private Placement Investment Company		21,577	81
	Others 2		6,536	176	12,670	10,533
Others	Others		1		61
	Total	W	36,651	307	19,420	10,533

1 The amount of acquisition of property, equipment and others is included.

2 Transactions with Trustay Co., Limited. before they were classified as non-affiliated companies are included.

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KT Corporation and Its Subsidiaries

Notes to the Consolidated Interim Financial Statements

As of March 31, 2025 and 2024, and December 31, 2024

(In millions of Korean won)		2024
		Sales		Purchases		Acquisition of right-of-use assets
Relationship	Name of Entity	Operating revenue	Other income	Operating expenses	Others 1
Associates and joint ventures	K Bank, Inc.	W	6,397		4,862
	HD Hyundai Robotics Co., Ltd.		19
	K-Realty 11th Real Estate Investment Trust Company		9	50	932		14
	K-Realty No.3 Real Estate General Private Placement Investment Company		2,422	82
	Others		7,956	174	11,493
Others	Rebellions Co.,Ltd.		5			430
	Total	W	16,808	306	17,287	430	14

1 The amount of acquisition of property, equipment and others is included.

(In millions of Korean won) — Relationship	Name of Entity	2025 — Finance income	Finance costs	Dividend Income	Finance income	Finance costs	Dividend income
Associates and joint ventures	K Bank, Inc.	W	665			2,726
	K-Realty 11th Real Estate Investment Trust Company			26	200		60	202
	Others				85			287
	Total	W	665	26	285	2,726	60	489

(4) Key management compensation for the three-month periods ended March 31, 2025 and 2024, consists of:

(In millions of Korean won) — Sort-term benefits	2025 — W	435	406
Post-employment benefits		70	48
Share-based compensation		183	82
Total	W	688	536

Table of Contents

KT Corporation and Its Subsidiaries

Notes to the Consolidated Interim Financial Statements

As of March 31, 2025 and 2024, and December 31, 2024

(5) Fund transactions with related parties for the three-month periods ended March 31, 2025 and 2024, are as follows:

(In millions of Korean won)	2025 — Borrowing transactions 1		Equity contributions in cash
	Borrowings	Repayments
Associates and joint ventures
IBK-KT Young Entrepreneurs MARS Investment Fund	W			6,000
K-Realty 11th Real Estate Investment Trust
Company			186
Others				1,374
Total	W		186	7,374

1 Borrowing transactions include lease transactions.

(In millions of Korean won)	2024
	Borrowing transactions 1		Equity contributions in cash
	Borrowings	Repayments
Associates and joint ventures
IBK-KT Young Entrepreneurs MARS Investment Fund	W			5,000
K-Realty 11th Real Estate Investment Trust
Company			320
Others				(400	)
Others
Rebellions Co.,Ltd.				9,999
Total	W		320	14,599

1 Borrowing transactions include lease transactions.

(6) The Group has an obligation according to invest agreements with related parties such as KIAMCO Data Center Development Real Estate General Private Placement Investment Blind Trusts. As of March 31, 2025 the Group has a plan to make an additional investment of W 92,034 million.

(7) As of March 31, 2025, the limit of the credit card contract provided by the Group to K Bank, Inc. and others is W 1,817 million (December 31, 2024: W 1,447 million).

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KT Corporation and Its Subsidiaries

Notes to the Consolidated Interim Financial Statements

As of March 31, 2025 and 2024, and December 31, 2024

Fair Value

(1) Fair Value of Financial Instruments by Category

Carrying amount and fair value of financial instruments by category as of March 31, 2025 and December 31, 2024, are as follows:

(In millions of Korean won)	March 31, 2025 — Carrying amount	Fair value	Carrying amount	Fair value
Financial assets
Cash and cash equivalents	W	3,132,996	1	3,716,680	1
Trade and other receivables
Financial assets at amortized cost 2		7,823,295	1	7,380,901	1
Financial assets at fair value through other comprehensive income		273,612	273,612	114,774	114,774
Other financial assets
Financial assets at amortized cost		1,041,078	1	962,653	1
Financial assets at fair value through profit or loss		1,082,702	1,082,702	1,029,926	1,029,926
Financial assets at fair value through other comprehensive income		1,658,876	1,658,876	1,665,368	1,665,368
Derivative financial assets for hedging		464,212	464,212	445,471	445,471
Total	W	15,476,771		15,315,773
Financial liabilities
Trade and other payables	W	6,881,435	1	7,214,174	1
Borrowings		11,169,545	10,945,802	10,520,690	10,423,619
Other financial liabilities
Financial liabilities at amortized cost		954,158	1	942,135	1
Financial liabilities at fair value through profit or loss		123,169	123,169	132,011	132,011
Derivative financial liabilities for hedging		14	14	3	3
Total	W	19,128,321		18,809,013

1 The Group did not conduct fair value estimation as the book amount is a reasonable approximation of the fair value.

2 Lease receivables are excluded from fair value disclosure in accordance with Korean IFRS 1107.

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KT Corporation and Its Subsidiaries

Notes to the Consolidated Interim Financial Statements

As of March 31, 2025 and 2024, and December 31, 2024

(2) Fair Value Hierarchy

Financial instruments that are measured at fair value are categorized by the fair value hierarchy, and the defined levels are as follows Level 1: The quoted (unadjusted) price in active markets for identical assets or liabilities that an entity can access at the measurement date.

Level 2: All inputs other than quoted prices included in Level 1 that are observable (either directly that is, or indirectly that is, derived from prices) for the asset or liability.

Level 3: The unobservable inputs for the asset or liability.

Fair value hierarchy classifications of the financial assets and financial liabilities that are measured disclosed at fair value or its fair value is disclosed as of March 31, 2025 and December 31, 2024, are as follows:

(In millions of Korean won)	March 31, 2025 — Level 1	Level 2	Level 3	Total
Assets
Trade and other receivables
Financial assets at fair value through other comprehensive income	W		273,612		273,612
Other financial assets
Financial assets at fair value through profit or loss		6,394	267,515	808,793	1,082,702
Financial assets at fair value through other comprehensive income		1,311,069	6,613	341,194	1,658,876
Derivative financial assets for hedging			464,212		464,212
Total	W	1,317,463	1,011,952	1,149,987	3,479,402
Liabilities
Borrowings	W		10,945,802		10,945,802
Other financial liabilities
Financial liabilities at fair value through profit or loss				123,169	123,169
Derivative financial liabilities for hedging			14		14
Total	W		10,945,816	123,169	11,068,985

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KT Corporation and Its Subsidiaries

Notes to the Consolidated Interim Financial Statements

As of March 31, 2025 and 2024, and December 31, 2024

(In millions of Korean won)	December 31, 2024 — Level 1	Level 2	Level 3	Total
Assets
Trade and other receivables
Financial assets at fair value through other comprehensive income	W		114,774		114,774
Other financial assets
Financial assets at fair value through profit or loss		5,620	181,694	842,612	1,029,926
Financial assets at fair value through other comprehensive income		1,317,120	5,418	342,830	1,665,368
Derivative financial assets for hedging			445,471		445,471
Total	W	1,322,740	747,357	1,185,442	3,255,539
Liabilities
Borrowings	W		10,423,619		10,423,619
Other financial liabilities
Financial liabilities at fair value through profit or loss				132,011	132,011
Derivative financial liabilities for hedging			3		3
Total	W		10,423,622	132,011	10,555,633

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KT Corporation and Its Subsidiaries

Notes to the Consolidated Interim Financial Statements

As of March 31, 2025 and 2024, and December 31, 2024

(3) Transfers Between Fair Value Hierarchy Levels of Recurring Fair Value Measurements

1) Details of transfers between Level 1 and Level 2 of the fair value hierarchy for recurring fair value measurements

There are no transfers between Level 1 and Level 2 of the fair value hierarchy for the recurring fair value measurements.

2) Details of changes in Level 3 of the fair value hierarchy for recurring fair value measurements.

Details of changes in Level 3 of the fair value hierarchy for the recurring fair value measurements are as follows for the three-month periods ended March 31, 2025 and 2024:

(In millions of Korean won)	2025
	Financial assets				Financial liabilities
	Financial assets at FVTPL		Financial assets at FVOCI		Financial liabilities at FVTPL
Beginning balance	W	842,612		342,830		132,011
Acquisition		7,369
Transfer				(108	)
Disposal		(38,946	)	(1,157	)	(381	)
Amount recognized in profit or loss		(2,242	)	24		(8,461	)
Amount recognized in other comprehensive income				(395	)
Ending balance	W	808,793		341,194		123,169

(In millions of Korean won)	2024
	Financial assets			Financial liabilities
	Financial assets at FVTPL		Financial assets at FVOCI	Financial liabilities at FVTPL
Beginning balance	W	768,832		444,026	134,561
Acquisition		21,559
Transfer		(605	)	7	22,925
Disposal		(978	)
Amount recognized in profit or loss		1,866			(9,504	)
Amount recognized in other comprehensive income				164
Ending balance	W	790,674		444,197	147,982

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KT Corporation and Its Subsidiaries

Notes to the Consolidated Interim Financial Statements

As of March 31, 2025 and 2024, and December 31, 2024

(4) Valuation Technique

Valuation techniques and inputs used in the recurring and non-recurring fair value measurements and disclosed fair values categorized within Level 2 and Level 3 of the fair value hierarchy as of March 31, 2025 and December 31, 2024, are as follows:

(In millions of Korean won)	March 31, 2025 — Fair value	Level	Major valuation techniques
Assets
Trade and other receivables
Financial assets at fair value through other comprehensive income	W	273,612	2	DCF Model
Other financial assets
Financial assets at fair value through profit or loss		1,076,308	2,3	DCF Model, Adjusted Net Asset Model, Market Approach Model, T-F Model
Financial assets at fair value through other comprehensive income		347,807	2,3	DCF Model, Market Approach Model
Derivative financial assets for hedging		464,212	2	DCF Model
Liabilities
Borrowings		10,945,802	2	DCF Model
Other financial liabilities
Financial liabilities at fair value through profit or loss		123,169	3	Binomial Option Pricing Model
Derivative financial liabilities for hedging		14	2	DCF Model

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KT Corporation and Its Subsidiaries

Notes to the Consolidated Interim Financial Statements

As of March 31, 2025 and 2024, and December 31, 2024

(In millions of Korean won)	December 31, 2024 — Fair value	Level	Major valuation techniques
Assets
Trade and other receivables
Financial assets at fair value through other comprehensive income	W	114,774	2	DCF Model
Other financial assets
Financial assets at fair value through profit or loss		1,024,306	2,3	DCF Model, Adjusted Net Asset Model, Market Approach Model, T-F Model
Financial assets at fair value through other comprehensive income		348,248	2,3	DCF Model, Market Approach Model
Derivative financial assets for hedging		445,471	2	DCF Model
Liabilities
Borrowings		10,423,619	2	DCF Model
Other financial liabilities
Financial liabilities at fair value through profit or loss		132,011	3	Binomial Option Pricing Model
Derivative financial liabilities for hedging		3	2	DCF Model

(5) Valuation Processes for Fair Value Measurements Categorized Within Level 3

The Group engages external experts that perform the fair value measurements required for financial reporting purposes. External experts report directly to the chief financial officer (CFO), and discuss the valuation processes and results with the CFO in line with the Groups closing dates.

Events After the Reporting Period

The Group has decided on a quarterly dividend at the Board of Directors dated April 15, 2025 and the details are as follows.

Type	Details
Dividend per share	W 600 (Total dividend: W 146,984 million)
Dividend yield	1.2%
Dividend report date	March 31, 2025
Dividend pay date	April 30, 2025

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KT Corporation

Separate Interim Financial Statements

March 31, 2025 and 2024, and December 31, 2024

ATTACHMENT: INDEPENDENT AUDITORS REVIEW REPORT

KT Corporation

Table of Contents

KT Corporation

Index

March 31, 2025 and 2024, and December 31, 2024

	Page(s)
Report on Review of Separate Interim Financial Statements	1 2
Separate Interim Financial Statements
Separate Interim Statement of Financial Position	3 4
Separate Interim Statement of Profit or Loss	5
Separate Interim Statement of Comprehensive Income	6
Separate Interim Statement of Changes in Equity	7
Separate Interim Statement of Cash Flows	8
Notes to the Separate Interim Financial Statements	9 57

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Deloitte Anjin LLC 9F., One IFC, 10, Gukjegeumyung-ro, Youngdeungpo-gu, Seoul 07326, Korea Tel: +82 (2) 6676 1000 Fax: +82 (2) 6674 2114 www.deloitteanjin.co.kr

Independent Auditors Review Report

[English Translation of Independent Auditors Review Report Originally Issued in Korean on May 15, 2025]

To the Shareholders and the Board of Directors of KT Corporation.

Reviewed Separate Interim Financial Statements

We have reviewed the accompanying separate interim financial statements of KT Corporation (the Company). The separate interim financial statements consist of the separate interim statement of financial position as of March 31, 2025, and the related separate interim statements of profit or loss, comprehensive income, changes in equity and cash flows for the three-month periods ended March 31, 2025 and 2024, all expressed in Korean won, and a summary of significant accounting policies and other explanatory notes.

Managements Responsibility for the Separate Interim Financial Statements

Management is responsible for the preparation and fair presentation of these separate interim financial statements in accordance with Korean International Financial Reporting Standards (K-IFRS) No. 1034 Interim Financial Reporting, and for such internal control as management determines is necessary to enable the preparation of separate interim financial statements that are free from material misstatement, whether due to fraud or error.

Auditors Responsibility

Our responsibility is to express a conclusion on these separate interim financial statements based on our reviews.

We conducted our reviews in accordance with the Review Standards for Quarterly and Semi-annual Financial Statements established by the Securities and Futures Commission of the Republic of Korea. A review of separate interim financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Korean Standards on Auditing(KSA) and consequently, does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

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Conclusion

Based on our reviews, nothing has come to our attention that causes us to believe that the accompanying separate interim financial statements referred to above are not presented fairly, in all material respects, the financial position as of March 31, 2025, and its financial performance and its cash flows for the three-month periods ended March 2025 in accordance with K-IFRS No.1034 Interim Financial Reporting.

Other Matters

We have audited the separate statement of financial position of the Company as of December 31, 2024, and the related separate statements of profit or loss, comprehensive income, changes in equity and cash flows for the year then ended, which are not accompanying this report, in accordance with KSA. We expressed an unqualified opinion on those financial statements in our audit report dated March 13, 2025. The accompanying separate statement of financial position as of December 31, 2024, presented for comparative purposes, is not different from the audited separate statement of financial position above in all material respects.

Seoul, Korea

May 15, 2025

Notice to Readers

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KT CORPORATION

Separate Interim Statements of Financial Position

As of March 31, 2025 and December 31, 2024

(In millions of Korean won)		March 31, 2025		December 31, 2024
Assets
Current Assets
Cash and cash equivalents	4,28	W	1,150,640	W	1,540,570
Trade and other receivables, net	4,5,28		3,209,502		2,904,846
Other financial assets	4,6,28		315,710		262,547
Inventories, net	7		190,204		224,678
Other current assets	8		2,150,236		1,959,960
Total Current Assets			7,016,292		6,892,601
Non-Current Assets
Trade and other receivables, net	4,5,28		241,107		309,106
Other financial assets	4,6,28		2,184,662		2,175,177
Property and equipment, net	9		11,068,273		11,477,680
Right-of-use assets	16		858,751		896,299
Investment properties, net	9		1,110,761		1,114,379
Intangible assets, net	9		1,058,209		1,104,680
Investments in subsidiaries, associates and joint ventures	10		4,832,116		4,831,186
Other non-current assets	8		670,803		727,772
Total Non-Current Assets			22,024,682		22,636,279
Total Assets		W	29,040,974	W	29,528,880

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KT Corporation

Separate Interim Statements of Financial Position

As of March 31, 2025 and December 31, 2024

(In millions of Korean won)		March 31, 2025
Liabilities
Current Liabilities
Trade and other payables	4,11,28	W	3,987,326	W	4,326,079
Borrowings	4,12,28		2,263,005		2,434,204
Current tax liabilities			136,987		32,057
Provisions	13,15		92,491		90,413
Deferred income	19		49,838		52,257
Other current liabilities	4,8,16		735,721		698,209
Total Current Liabilities			7,265,368		7,633,219
Non-Current Liabilities
Trade and other payables	4,11,28		216,325		479,416
Borrowings	4,12,28		5,417,644		5,437,715
Other financial liabilities	4,6,28		28		28
Net Defined Benefit Liability	14		82,105		51,082
Provisions	13		95,641		96,059
Deferred income	19		132,842		136,382
Deferred tax liabilities			692,864		728,863
Other non-current liabilities	4,8,16		506,520		545,976
Total Non-Current Liabilities			7,143,969		7,475,521
Total Liabilities			14,409,337		15,108,740
Equity
Share capital			1,564,499		1,564,499
Share premium			1,440,258		1,440,258
Retained earnings	17		11,965,021		11,717,929
Accumulated other comprehensive income			96,259		86,478
Other components of equity	18		(434,400	)	(389,024	)
Total Equity			14,631,637		14,420,140
Total Liabilities and Equity		W	29,040,974	W	29,528,880

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

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KT CORPORATION

Separate Interim Statements of Profit or Loss

For the three-month periods ended March 31, 2025 and 2024

(In millions of Korean won, except per share amounts)	Notes	Three-Month Periods Ended March 31 — 2025		2024
Operating Revenue	19	W	4,682,007	W	4,694,828
Operating Expenses	20		4,281,893		4,301,055
Operating Profit			400,114		393,773
Other income	21		64,594		99,867
Other expenses	21		27,589		48,271
Finance income	22		87,893		209,105
Finance costs	22		76,691		188,325
Profit before Income Tax			448,321		466,149
Income tax expense	23		82,944		112,118
Profit for the Period		W	365,377	W	354,031
Earnings per share
Basic earnings per share	24	W	1,487	W	1,438
Diluted earnings per share	24		1,486		1,437

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

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KT CORPORATION

Separate Interim Statements of Comprehensive Income

For the three-month periods ended March 31, 2025 and 2024

(In millions of Korean won)	Notes	Three-Month Periods Ended March 31 — 2025		2024
Profit for the period		W	365,377	W	354,031
Other comprehensive income (loss)
Items that will not be reclassified to profit or loss:
Remeasurements of the net defined benefit Assets	14		4,610		2,153
Valuation gains(losses) on equity instruments at fair value through other comprehensive
income			(5,432	)	112,137
Items that are or may be subsequently reclassified to profit or loss:
Valuation gains on cash flow hedges	6		13,881		79,834
Other comprehensive income from cash flow hedges reclassified to profit or loss			1,330		(84,296	)
Other comprehensive income (loss) for the period, net of tax			14,389		109,828
Total comprehensive income (loss) for the period		W	379,766	W	463,859

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

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KT CORPORATION

Separate Interim Statements of Changes in Equity

For the three-month periods ended March 31, 2025 and 2024

(In millions of Korean won) — Balance as of January 1, 2024	W	1,564,499	Share premium — W	1,440,258	Retained earnings — W	12,544,425	W	64,229	W	(569,872	)	Total equity — W	15,043,539
Comprehensive income
Profit for the period						354,031							354,031
Valuation gains on financial assets at fair value through other comprehensive income	6					(21	)	112,158					112,137
Remeasurements of net defined benefit assets	14					2,153							2,153
Valuation gains (losses) on cash flow hedges	6							(4,462	)				(4,462	)
Total comprehensive income for the period						356,163		107,696					463,859
Transactions with owners
Dividends paid						(482,970	)						(482,970	)
Acquisition of treasury stock										(27,100	)		(27,100	)
Retirement of treasury stock						(27,100	)			27,100
Others										1,839			1,839
Subtotal						(510,070	)			1,839			(508,231	)
Balance as of March 31, 2024	W	1,564,499	W	1,440,258	W	12,390,518	W	171,925	W	(568,033	)	W	14,999,167
Balance as of January 1, 2025	W	1,564,499	W	1,440,258	W	11,717,929	W	86,478	W	(389,024	)	W	14,420,140
Comprehensive income
Profit for the period						365,377							365,377
Valuation gains on financial assets at fair value through other comprehensive income	6					(2	)	(5,430	)				(5,432	)
Remeasurements of net defined benefit assets	14					4,610							4,610
Valuation gains (losses) on cash flow hedges	6							15,211					15,211
Total comprehensive income for the period						369,985		9,781					379,766
Transactions with owners
Dividends paid						(122,836	)						(122,836	)
Appropriation of retained earnings related to loss on disposal of treasury stock						(57	)			57
Acquisition of treasury stock										(47,197	)		(47,197	)
Others										1,764			1,764
Subtotal						(122,893	)			(45,376	)		(168,269	)
Balance as of March 31, 2025	W	1,564,499	W	1,440,258	W	11,965,021	W	96,259	W	(434,400	)	W	14,631,637

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

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KT CORPORATION

Separate Interim Statements of Cash Flows

For the three-month periods ended March 31, 2025 and 2024

(In millions of Korean won)	Notes	Three-Month Periods Ended March 31 — 2025		2024
Cash flows from operating activities
Cash generated from operations	25	W	899,443	W	863,194
Interest paid			(85,666	)	(92,451	)
Interest received			41,808		50,514
Income tax paid			(7,091	)	(1,471	)
Net cash inflow from operating activities			848,494		819,786
Cash flows from investing activities
Collection of loans			9,563		9,339
Disposals of financial assets at amortized cost					197,569
Disposals of financial assets at fair value through profit or loss			3,009		5,061
Disposals of financial assets at fair value through other comprehensive income			142		1,631
Disposals of investments in subsidiaries, associates and joint ventures			7,096		1,820
Disposals of property and equipment			28,499		18,930
Disposals of intangible assets			2,302		436
Disposals of right-of-use assets			20		76
Loans granted			(5,005	)	(5,767	)
Acquisitions of current financial assets at amortized cost			(52,803	)
Acquisitions of financial assets at fair value through profit or loss			(291	)	(4,060	)
Acquisitions of investments in subsidiaries, associates and joint ventures			(5,800	)	(5,000	)
Acquisitions of property and equipment			(627,945	)	(455,491	)
Acquisitions of intangible assets			(277,380	)	(273,428	)
Acquisitions of right-of-use assets			(38	)	(220	)
Net cash outflow from investing activities			(918,631	)	(509,104	)
Cash flows from financing activities
Proceeds from borrowings and debentures			1,090,657		398,700
Repayments of borrowings and debentures			(1,280,247	)	(510,247	)
Settlement of derivative contracts (outflow)			(3,724	)
Acquisition of treasury stock			(47,197	)	(27,100	)
Decrease in lease liabilities			(79,032	)	(82,466	)
Net cash outflow from financing activities	26		(319,543	)	(221,113	)
Effect of exchange rate change on cash and cash equivalents			(250	)	37
Net increase (decrease) in cash and cash equivalents			(389,930	)	89,606
Cash and cash equivalents
Beginning of the period			1,540,570		1,242,005
End of the period		W	1,150,640	W	1,331,611

The above separate interim statements of cash flows should be read in conjunction with the accompanying notes.

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KT Corporation

Notes to the Separate Interim Financial Statements

As of March 31, 2025 and 2024, and December 31, 2024

General Information

KT Corporation (the Company) commenced operations on January 1, 1982, when it spun off from the Korea Communications Commission (formerly the Korean Ministry of Information and Communications) to provide telecommunication services and to engage in the development of advanced communications services under the Act of Telecommunications of Korea. The address of the Companys registered office is 90, Buljeonga-ro, Bundang-gu, Seongnam City, Gyeonggi Province, Korea.

On October 1, 1997, upon the announcement of the Government-Investment Enterprises Management Basic Act and the Privatization Law, the Company became a government-funded institution under the Commercial Code of Korea.

On December 23, 1998, the Companys shares were listed on the Korea Exchange.

On May 29, 1999, the Company issued 24,282,195 additional shares and issued American Depository Shares (ADS), which represents new shares and 20,813,311 government-owned shares, on the New York Stock Exchange. On July 2, 2001, additional ADS, representing 55,502,161 government-owned shares, were issued on the New York Stock Exchange.

In 2002, the Company acquired all government-owned shares in accordance with the Korean governments privatization plan. As of March 31,2025, the Korean government does not own any shares in the Controlling Company.

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KT Corporation

Notes to the Separate Interim Financial Statements

As of March 31, 2025 and 2024, and December 31, 2024

Material Accounting Policies

2.1 Basis of Preparation

The Company maintains its accounting records in Korean won and prepares statutory financial statements in the Korean language (Hangul) in accordance with International Financial Reporting Standards as adopted by the Republic of Korea (Korean IFRS or K-IFRS). The accompanying separate interim financial statements have been condensed, reformatted, and translated into English from the original Korean language financial statements.

The separate interim financial statements of the Company for the three-month period ended March 31, 2025, have been prepared in accordance with Korean IFRS 1034 Interim Financial Reporting and are separate financial statements in accordance with K-IFRS 1027. In order to understand the interim financial statements, the annual financial statements as of December 31, 2024 prepared in accordance with K-IFRS should be used together.

2.2 Changes in Accounting Policies and Disclosures

(1) New and amended standards and interpretations adopted by the Company

The Company has applied the following standards and interpretations for the first time for their annual reporting period commencing January 1, 2025.

K-IFRS 1021 The Effects of Changes in Foreign Exchange Rates and K-IFRS 1101 First-time adoption of Korean International Financial Reporting Standards (Amendment) - Lack of Exchangeability

The amendments specify how to assess whether a currency is exchangeable, and how to determine the exchange rate when it is not.

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KT Corporation

Notes to the Separate Interim Financial Statements

As of March 31, 2025 and 2024, and December 31, 2024

(2) New and revised standards and interpretations in issue but not yet effective or adopted by the Company

At the date of authorization of these financial statements, the Company has not applied the following new and amended K-IFRS standards that have been issued but are not yet effective:

K-IFRS 1109 Financial Instruments and K-IFRS 1107 Financial Instruments: Disclosures Classification and measurement requirements of financial instruments

K-IFRS 1109 Financial Instruments Derecognition of lease liabilities and Transaction price

The amendments are effective for annual reporting periods beginning on or after 1 January 2026, with earlier application permitted.

K-IFRS 1110 Consolidated Financial Statements Determination of de facto agent

The amendments have amended K-IFRS 10: B74 to use less conclusive language and to clarify that the relationship described in K-IFRS 10: B74 is just one example of a circumstance in which judgement is required to determine whether a party is acting as a de facto agent.

The amendments are effective for annual reporting periods beginning on or after 1 January 2026, with earlier application permitted.

K-IFRS 1101 First-time adoption of Korean International Financial Reporting Standards Hedging accounting by a first-time adopter

The amendments have improved the consistency of the wording of K-IFRS 1101: B6 with the requirements for hedge accounting in K-IFRS 1109 and added cross-references to K-IFRS 1109:6.4.1 to improve the understandability of K-IFRS 1101.

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KT Corporation

Notes to the Separate Interim Financial Statements

As of March 31, 2025 and 2024, and December 31, 2024

The amendments are effective for annual reporting periods beginning on or after 1 January 2026, with earlier application permitted.

K-IFRS 1107 Financial Instruments: Disclosures Gain or loss on derecognition

The amendments have updated the obsolete cross-reference in K-IFRS 1107: B38 and aligned the wording of this paragraph with the terms used in K-IFRS.

The amendments are effective for annual reporting periods beginning on or after 1 January 2026, with earlier application permitted.

K-IFRS 1007 Statement of Cash Flows : Cost method

The amendments have replaced the term cost method with at cost in K-IFRS 1007:37.

The amendments are effective for annual reporting periods beginning on or after 1 January 2026, with earlier application permitted.

The Company is reviewing the impact of the above-listed amendments on the financial statements.

2.3 Accounting Policies

The material accounting policies and methods of computation used in the presentation of the separate interim financial statements are consistent with those of the separate financial statements for the year ended December 31, 2024, except for the changes resulting from the application of amendments and enactments of standards described in Note 2.2 (1) and as detailed below.

2.3.1 Income Tax Expense

Critical Accounting Estimates and Assumptions

The preparation of financial statements requires the Company to make estimates and assumptions about the future. Management also needs to exercise judgement in applying the Companys accounting policies. Estimates and assumptions are continuously evaluated and are based on historical experience and other factors, including reasonable expectations of future events under the given circumstances. As the resulting accounting estimates will, by definition, rarely equal the actual results, they involve a significant risk of resulting in material adjustments.

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KT Corporation

Notes to the Separate Interim Financial Statements

As of March 31, 2025 and 2024, and December 31, 2024

Financial Instruments by Category

Financial instruments by category as of March 31, 2025 and December 31, 2024, are as follows:

(In millions of Korean won) — Financial assets	March 31, 2025 — Financial assets at amortized cost	Financial assets at FVTPL	Financial assets at FVOCI	Derivatives used for hedging	Total
Cash and cash equivalents	W	1,150,640				1,150,640
Trade and other receivables		3,176,997		273,612		3,450,609
Other financial assets		133,303	453,506	1,452,645	460,918	2,500,372
(In millions of Korean won)	March 31, 2025
Financial liabilities	Financial liabilities at amortized cost	Financial liabilities at FVTPL	Derivatives used for hedging	Others	Total
Trade and other payables 1	W	3,961,012				3,961,012
Borrowings		7,680,649				7,680,649
Other financial liabilities			28			28
Lease liabilities					727,115	727,115

1 Amounts related to employee benefit plans are excluded in Trade and other payables.

(In millions of Korean won) — Financial assets	December 31, 2024 — Financial assets at amortized cost	Financial assets at FVTPL	Financial assets at FVOCI	Derivatives used for hedging	Total
Cash and cash equivalents	W	1,540,570				1,540,570
Trade and other receivables		3,099,178		114,774		3,213,952
Other financial assets		80,465	456,224	1,458,891	442,144	2,437,724
(In millions of Korean won)	December 31, 2024
Financial liabilities	Financial liabilities at amortized cost	Financial liabilities at FVTPL	Derivatives used for hedging	Others	Total
Trade and other payables 1	W	4,315,375				4,315,375
Borrowings		7,871,919				7,871,919
Other financial liabilities			28			28
Lease liabilities					759,743	759,743

1 Amounts related to employee benefit plans are excluded in Trade and other payables.

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KT Corporation

Notes to the Separate Interim Financial Statements

As of March 31, 2025 and 2024, and December 31, 2024

Trade and Other Receivables

(1) Trade and other receivables as of March 31, 2025 and December 31, 2024, are as follows:

(In millions of Korean won)	March 31, 2025 — Total amounts	Provision for impairment		Present value discount		Carrying amount
Current assets
Trade receivables	W	3,107,207	(291,189	)	(7,712	)	2,808,306
Other receivables		437,410	(33,735	)	(2,479	)	401,196
Total	W	3,544,617	(324,924	)	(10,191	)	3,209,502
Non-current assets
Trade receivables	W	152,371	(927	)	(9,328	)	142,116
Other receivables		105,506	(362	)	(6,153	)	98,991
Total	W	257,877	(1,289	)	(15,481	)	241,107

(In millions of Korean won)	December 31, 2024 — Total amounts	Provision for impairment		Present value discount		Carrying amount
Current assets
Trade receivables	W	2,840,837	(290,502	)	(8,749	)	2,541,586
Other receivables		399,200	(34,376	)	(1,564	)	363,260
Total	W	3,240,037	(324,878	)	(10,313	)	2,904,846
Non-current assets
Trade receivables	W	221,495	(927	)	(14,150	)	206,418
Other receivables		109,723	(430	)	(6,605	)	102,688
Total	W	331,218	(1,357	)	(20,755	)	309,106

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KT Corporation

Notes to the Separate Interim Financial Statements

As of March 31, 2025 and 2024, and December 31, 2024

(2) Details of other receivables as of March 31, 2025 and December 31, 2024, are as follows:

(In millions of Korean won) — Loans	March 31, 2025 — W	32,581		37,005
Receivables		232,757		246,303
Accrued income		56,487		1,812
Refundable deposits		212,459		215,634
Less: Provision for impairment		(34,097	)	(34,806	)
Total	W	500,187		465,948

(3) The maximum exposure of trade and other receivables to credit risk is the carrying amount of each class of receivables mentioned above as of March 31, 2025.

(4) The Company classifies a certain portion of the trade receivables as financial assets at fair value through other comprehensive income, based on business model for managing the asset and the cash flow characteristics of the contract.

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KT Corporation

Notes to the Separate Interim Financial Statements

As of March 31, 2025 and 2024, and December 31, 2024

Other Financial Assets and Liabilities

(1) Details of other financial assets and liabilities as of March 31, 2025 and December 31, 2024, are as follows:

(In millions of Korean won)	March 31, 2025
Other financial assets
Financial assets at amortized cost 1	W	133,303		80,465
Financial assets at fair value through profit or loss 2		453,506		456,224
Financial assets at fair value through other comprehensive income		1,452,645		1,458,891
Derivatives used for hedging		460,918		442,144
Less: Non-current		(2,184,662	)	(2,175,177	)
Current	W	315,710		262,547
Other financial liabilities
Financial liabilities at fair value through profit or loss	W	28		28
Less: Non-current		(28	)	(28	)
Current	W

1 As of March 31, 2025, the Companys financial instruments amount to W 30,464 million (December 31, 2024: W 30,464 million) and consist of checking account deposits, time deposits, and others which are subject to withdrawal restrictions.

2 As of March 31, 2025, the Company provided investment in Korea Software Financial Cooperative and others amounting to W 1,136 million (December 31, 2024: W 1,136 million) as collateral in exchange for the payment guarantee provided by the Korea Software Financial Cooperative and others.

(2) Financial Assets at fair value through profit or loss

1) Details of financial assets at fair value through profit or loss as of March 31, 2025 and December 31, 2024, are as follows:

(In millions of Korean won) — Debt instruments	March 31, 2025 — W	453,506		456,224
Less: Non-current		(453,506	)	(456,224	)
Current	W

2) The maximum exposure to credit risks of debt instruments of financial assets at fair value through profit or loss is the carrying amount of each class of debt instruments above as of March 31, 2025.

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KT Corporation

Notes to the Separate Interim Financial Statements

As of March 31, 2025 and 2024, and December 31, 2024

(3) Financial Assets at fair value through other comprehensive income

1) Details of financial assets at fair value through other comprehensive income as of March 31, 2025 and December 31, 2024, are as follows:

(In millions of Korean won) — Equity instruments (Listed)	March 31, 2025 — W	1,311,630		1,317,876
Equity instruments (Unlisted)		141,015		141,015
Less: Non-current		(1,452,645	)	(1,458,891	)
Current	W

2) Upon disposal of these equity instruments, any balance within the other comprehensive income is reclassified not to profit or loss, but to retained earnings. Upon disposal of these debt instruments, the remaining balance of the accumulated other comprehensive income is reclassified to profit or loss.

(4) Derivatives used for hedging

1) Details of valuation of derivatives used for hedging as of March 31, 2025 and December 31, 2024, are as follows:

(In millions of Korean won)	March 31, 2025 — Assets		Liabilities		Liabilities
Currency swap 1	W	460,918		442,144
Less: Non-current		(278,508	)	(260,057	)
Current	W	182,410		182,087

1 The currency swap contract is to hedge the risk of volatility in cash flow from the borrowings due to changes in interest rate and foreign exchange rate and the expected maximum period for the Company to be exposed to risks of cash flow volatility by hedged items is until September 7, 2034.

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KT Corporation

Notes to the Separate Interim Financial Statements

As of March 31, 2025 and 2024, and December 31, 2024

2) Details of valuation gains and losses from derivatives for risk hedging purposes for the three-month periods ended March 31, 2025 and 2024, are as follows:

(In millions of Korean won)
	2025			2024
Type of transaction	Valuation gain	Valuation loss	Other comprehensive loss 1	Valuation gain	Valuation loss	Other comprehensive loss 1
Currency swap	W	5,814	7,183	20,144	113,882	93	(6,069	)

1 The amounts directly reflected in equity are before adjustments of deferred income tax.

3) The effective portion recognized in profit or loss related to cash flow hedges amounts to valuation gains of W 18,706 million as other comprehensive income for the three-month period ended March 31, 2025 (three-month period ended March 31, 2024: W 106,916 million). The ineffective portion recognized in profit or loss related to cash flow hedges amounts to valuation gains of W 242 million as current profit or loss for the three-month period ended March 31, 2025 (three-month period ended March 31, 2024: W 804 million). In addition, the valuation loss reclassified from other comprehensive income to profit or loss amounts to W 1,438 million for the three-month period ended March 31, 2025 (three-month period ended March 31, 2024: valuation gains of W 112,985 million).

(5) Financial Liabilities at fair value through profit or loss

1) Details of financial liabilities at fair value through profit or loss as of March 31, 2025 and December 31, 2024, are as follows:

(In millions of Korean won) — Derivative liabilities held for trading 1	March 31, 2025 — W	28	28

1 Derivative liabilities recognized in relation to acquisition of Epsilon Global Communications Pte. Ltd. (Note 15).

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KT Corporation

Notes to the Separate Interim Financial Statements

As of March 31, 2025 and 2024, and December 31, 2024

Inventories

Inventories as of March 31, 2025 and December 31, 2024, are as follows:

(In millions of Korean won)
	March 31, 2025		December 31, 2024
	Acquisition cost	Valuation allowance	Carrying amount	Acquisition cost	Valuation allowance	Carrying amount
Merchandise	W 226,581	(36,377)	190,204	285,892	(61,214)	224,678

Cost of inventories recognized as expenses for the three-month period ended March 31, 2025 amounts to W 686,027 million (for the three-month period ended March 31, 2024: W 696,334 million), and reversal valuation loss on inventory amounts to W 24,837 million for the three-month period ended March 31, 2025 (for the three-month period ended March 31, 2024: W 20,048 million).

Other Assets and Liabilities

Other assets and liabilities as of March 31, 2025 and December 31, 2024, are as follows:

(In millions of Korean won)	March 31, 2025
Other assets
Advance payments	W	51,216		52,289
Prepaid expenses		188,195		97,714
Contract costs		1,860,445		1,802,221
Contract assets		721,183		735,508
Less: Non-current		(670,803	)	(727,772	)
Current	W	2,150,236		1,959,960
Other liabilities
Advances received 1	W	216,239		215,354
Withholdings		38,806		25,362
Unearned revenue		4,775		828
Lease liabilities		727,115		759,743
Contract liabilities		255,306		242,898
Less: Non-current		(506,520	)	(545,976	)
Current	W	735,721		698,209

1 The amounts include adjustments arising from adoption of Korean IFRS 1115 Revenue from Contracts with Customers (Note 19).

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KT Corporation

Notes to the Separate Interim Financial Statements

As of March 31, 2025 and 2024, and December 31, 2024

Property and Equipment, Investment Properties, and Intangible Assets

(1) Changes in property and equipment for the three-month periods ended March 31, 2025 and 2024, are as follows:

(In millions of Korean won) — Beginning, net	2025 — W	11,477,680		11,492,776
Acquisition and capital expenditure		311,361		352,635
Disposal and termination		(31,987	)	(15,418	)
Depreciation		(615,062	)	(598,493	)
Transfer to investment properties		(7,730	)	(3,045	)
Others 1		(65,989	)	(14,172	)
Ending, net	W	11,068,273		11,214,283

1 Amounts include transfers to intangible assets.

(2) Changes in investment properties for the three-month periods ended March 31, 2025 and 2024, are as follows:

(In millions of Korean won) — Beginning, net	2025 — W	1,114,379		1,191,592
Depreciation		(11,348	)	(11,879	)
Transfer from property and equipment		7,730		3,045
Ending, net	W	1,110,761		1,182,758

(3) As of March 31, 2025, the Company (Lessor) has entered into a non-cancellable operating lease contract for real estate. The future minimum lease payments under this contract amount to W 135,374 million for one year or less, W 238,697 million for more than one year and less than five years, W 453,469 million for over five years, and W 827,540 million in total.

(4) Changes in intangible assets for the three-month periods ended March 31, 2025 and 2024, are as follows:

(In millions of Korean won) — Beginning, net	2025 — W	1,104,680		1,487,848
Acquisition and capital expenditure 1		70,414		16,136
Disposal and termination		(1,959	)	(5,982	)
Amortization		(114,926	)	(121,746	)
Ending, net	W	1,058,209		1,376,256

1 Amounts include transfers from property and equipment.

The carrying amount of goodwill and memberships assessed to have indefinite useful life and, therefore, not subject to amortization is W 65,057 million (December 31, 2024: W 65,057 million) and W 58,086 million (December 31, 2024: W 55,778 million), respectively as of March 31, 2025.

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KT Corporation

Notes to the Separate Interim Financial Statements

As of March 31, 2025 and 2024, and December 31, 2024

Investments in Subsidiaries, Associates and Joint Ventures

(1) Carrying amounts in investments in subsidiaries, associates and joint ventures as of March 31, 2025 and December 31, 2024, is as follows:

(In millions of Korean won) — Subsidiaries	March 31, 2025 — W	4,418,442	4,419,598
Associates and joint ventures		413,674	411,588
Total	W	4,832,116	4,831,186

1) Investments in subsidiaries as of March 31, 2025 and December 31, 2024, are as follows:

(In millions of Korean won)			Carrying amount
			March 31, 2025	December 31, 2024
KT Estate Inc.	Korea	100.0 %	W	1,084,522	1,084,522
KT Sat Co., Ltd.	Korea	100.0 %		390,530	390,530
KTCS Corporation 1	Korea	8.4 %		6,427	6,427
KTIS Corporation 1	Korea	33.3 %		30,633	30,633
KT Skylife Co., Ltd.	Korea	50.5 %		311,696	311,696
BC Card Co., Ltd.	Korea	69.5 %		633,004	633,004
KT M&S Co., Ltd.	Korea	100.0 %		26,914	26,914
KT Alpha Co., Ltd.	Korea	70.5 %		130,924	130,924
KT Telecop Co., Ltd.	Korea	92.7 %		138,541	138,541
kt Nasmedia, Co., Ltd. (formerly. Nasmedia, Co., Ltd.) 1	Korea	44.1 %		23,051	23,051
KTDS Co., Ltd.	Korea	91.6 %		19,616	19,616
KTGDH Co., Ltd.	Korea	100.0 %		2,745	2,745
KT Sports Co., Ltd.	Korea	52.6 %		27,327	27,327
KT M Mobile Co., Ltd.	Korea	100.0 %		102,237	102,237
KT Service Bukbu Co., Ltd.	Korea	67.3 %		3,873	3,873
KT Service Nambu Co., Ltd.	Korea	94.7 %		16,898	10,160
KT Strategic Investment Fund No.3	Korea	86.7 %		130	130
PlayD Co., Ltd. 2	Korea	23.5 %		20,000	20,000
KT MOS Bukbu Co., Ltd.	Korea	100.0 %		6,334	6,334
KT MOS Nambu Co., Ltd.	Korea	98.4 %		4,267	4,267
Next Connect PFV	Korea	100.0 %		24,250	24,250
KT Strategic Investment Fund No.5	Korea	95.0 %		19,000	19,000
KT Engineering Co., Ltd.	Korea	59.8 %		28,000	28,000
KT Studio Genie Co., Ltd.	Korea	90.9 %		283,620	283,620
KT ES Pte. Ltd.	Singapore	68.8 %		16,003	16,003
Altimedia Corporation	Korea	100.0 %		22,000	22,000
kt Cloud Co., Ltd.	Korea	92.7 %		901,504	901,504
kt netcore. Co., Ltd.	Korea	100.0 %		61,000	61,000
kt p&m Co., Ltd.	Korea	100.0 %		10,000	10,000
Others				73,396	81,290
Total			W	4,418,442	4,419,598

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KT Corporation

Notes to the Separate Interim Financial Statements

As of March 31, 2025 and 2024, and December 31, 2024

1 As of March 31, 2025, although sum of percentage of ownership of the Company and its subsidiaries is less than 50% ownership in these entities, these entities are included in investments in subsidiaries due to the dispersion of other shareholders excluding the Company and voting patterns at previous shareholders meetings.

2 As of March 31, 2025, this entity is included in investments in subsidiaries, as kt Nasmedia Co., Ltd. (formerly. Nasmedia, Co., Ltd.) holds 46.9% ownership, while the Company and its subsidiary together hold 70.4% ownership.

2) Investments in associates and joint ventures as of March 31, 2025 and December 31, 2024, are as follows:

(In millions of Korean won)			Carrying amount
			March 31, 2025	December 31, 2024
KIF Investment Fund	Korea	33.3 %	W	115,636	115,636
HD Hyundai Robotics Co., Ltd. 1	Korea	10.0 %		50,000	50,000
Megazone Cloud Corporation 1	Korea	6.7 %		130,001	130,001
KT-DSC Creative Economy YouthStart-up Investment Fund 1	Korea	17.1 %		2,055	2,055
Others				115,982	113,896
Total			W	413,674	411,588

1 The Company holds less than 20% interest in the investees as of March 31, 2025, but the investments are classified as investments in associates as the Company exerts significant influence over the operational and financial policies.

(2) Changes in investments in subsidiaries, associates and joint ventures for the three-month periods ended March 31, 2025 and 2024, are as follows:

(In millions of Korean won) — Beginning	2025 — W	4,831,186		4,796,606
Acquisition		5,800		5,000
Disposal		(4,870	)	(1,820	)
Ending	W	4,832,116		4,799,786

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KT Corporation

Notes to the Separate Interim Financial Statements

As of March 31, 2025 and 2024, and December 31, 2024

Trade and Other Payables

(1) Details of trade and other payables as of March 31, 2025 and December 31, 2024, are as follows:

(In millions of Korean won)	March 31, 2025
Current liabilities
Trade payables	W	517,258	517,879
Other payables		3,470,068	3,808,200
Total	W	3,987,326	4,326,079
Non-current liabilities
Other payables	W	216,325	479,416

(2) Details of other payables as of March 31, 2025 and December 31, 2024, are as follows:

(In millions of Korean won) — Non-trade payable	March 31, 2025 — W	2,143,348		2,917,086
Accrued expenses		1,077,502		901,219
Operating deposits		370,547		375,105
Others		94,996		94,206
Less: Non-current		(216,325	)	(479,416	)
Current	W	3,470,068		3,808,200

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KT Corporation

Notes to the Separate Interim Financial Statements

As of March 31, 2025 and 2024, and December 31, 2024

Borrowings

(1) Details of borrowings as of March 31, 2025 and December 31, 2024, are as follows:

1) Debentures

(In millions of Korean won and foreign currencies in thousands) — Type	Maturity	Annual interest rates	March 31, 2025 — Foreign currency	Korean won	Foreign currency		Korean won
MTNP notes 1	Sep. 7, 2034	6.500%	USD 100,000	W	146,650	USD 100,000	W	147,000
MTNP notes	Jul. 18, 2026	2.500%	USD 400,000		586,600	USD 400,000		588,000
MTNP notes	Sep. 1, 2025	1.000%	USD 400,000		586,600	USD 400,000		588,000
MTNP notes	Jan. 21, 2027	1.375%	USD 300,000		439,950	USD 300,000		441,000
MTNP notes	Aug. 8, 2025	4.000%	USD 500,000		733,250	USD 500,000		735,000
MTNP notes	Feb. 2, 2028	4.125%	USD 500,000		733,250	USD 500,000		735,000
MTNP notes	Mar. 5, 2027	1.217%	JPY 23,300,000		228,750
MTNP notes	Mar. 7, 2028	1.367%	JPY 6,700,000		65,778
The 183-3rd Public bond	Dec. 22, 2031	4.270%			160,000			160,000
The 184-3rd Public bond	Apr. 10, 2033	3.170%			100,000			100,000
The 186-4th Public bond	Jun. 26, 2034	3.695%			100,000			100,000
The 187-4th Public bond	Sep. 2, 2034	3.546%			100,000			100,000
The 188-2nd Public bond	Jan. 29, 2025							240,000
The 188-3rd Public bond	Jan. 29, 2035	2.706%			50,000			50,000
The 189-3rd Public bond	Jan. 28, 2026	2.203%			100,000			100,000
The 189-4th Public bond	Jan. 28, 2036	2.351%			70,000			70,000
The 190-3rd Public bond	Jan. 30, 2028	2.947%			170,000			170,000
The 190-4th Public bond	Jan. 30, 2038	2.931%			70,000			70,000
The 191-3rd Public bond	Jan. 15, 2029	2.160%			110,000			110,000
The 191-4th Public bond	Jan. 14, 2039	2.213%			90,000			90,000
The 192-3rd Public bond	Oct. 11, 2029	1.622%			50,000			50,000
The 192-4th Public bond	Oct. 11, 2039	1.674%			110,000			110,000
The 193-2nd Public bond	Jun. 17, 2025	1.434%			70,000			70,000
The 193-3rd Public bond	Jun. 17, 2030	1.608%			20,000			20,000
The 193-4th Public bond	Jun. 15, 2040	1.713%			60,000			60,000
The 194-2nd Public bond	Jan. 27, 2026	1.452%			140,000			140,000
The 194-3rd Public bond	Jan. 27, 2031	1.849%			50,000			50,000
The 194-4th Public bond	Jan. 25, 2041	1.976%			80,000			80,000
The 195-2nd Public bond	Jun. 10, 2026	1.806%			80,000			80,000
The 195-3rd Public bond	Jun. 10, 2031	2.168%			40,000			40,000
The 196-1st Public bond	Jan. 27, 2025							270,000
The 196-2nd Public bond	Jan. 27, 2027	2.637%			100,000			100,000
The 196-3rd Public bond	Jan. 27, 2032	2.741%			30,000			30,000
The 197-1st Public bond	Jun. 27, 2025	4.191%			280,000			280,000

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KT Corporation

Notes to the Separate Interim Financial Statements

As of March 31, 2025 and 2024, and December 31, 2024

(In millions of Korean won and foreign currencies in thousands) — Type	Maturity	Annual interest rates	Korean won		Foreign currency	Korean won
The 197-2nd Public bond	Jun. 29, 2027	4.188%	W	120,000		W	120,000
The 198-1st Public bond	Jan. 10, 2025						70,000
The 198-2nd Public bond	Jan. 12, 2026	3.869%		150,000			150,000
The 198-3rd Public bond	Jan. 12, 2028	3.971%		80,000			80,000
The 199-1st Public bond	Jul. 11, 2025	4.028%		85,000			85,000
The 199-2nd Public bond	Jul. 10, 2026	4.146%		160,000			160,000
The 199-3rd Public bond	Jul. 12, 2028	4.221%		155,000			155,000
The 200-1st Public bond	Feb. 27, 2026	3.552%		120,000			120,000
The 200-2nd Public bond	Feb. 26, 2027	3.608%		200,000			200,000
The 200-3rd Public bond	Feb. 27, 2029	3.548%		80,000			80,000
The 201-1st Public bond	Dec. 2, 2027	2.899%		130,000			130,000
The 201-2nd Public bond	Dec. 2, 2029	2.918%		70,000			70,000
The 201-3rd Public bond	Dec. 2, 2034	3.057%		100,000			100,000
	Subtotal			7,200,828			7,494,000
Less: Current portion				(2,262,512	)		(2,333,711	)
Discount on bonds				(20,919	)		(23,068	)
	Total		W	4,917,397		W	5,137,221

1 As of March 31, 2025, the Company has outstanding notes in the amount of USD 100 million with fixed interest rates under Medium Term Note Program (MTNP) registered on the Singapore Stock Exchange, which allowed the issuance of notes of up to USD 2,000 million. However, the MTN program was terminated in 2007.

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KT Corporation

Notes to the Separate Interim Financial Statements

As of March 31, 2025 and 2024, and December 31, 2024

2) Long-Term Borrowings

(In millions of Korean won and foreign currencies in thousands) — Financial institution	Type	Maturity	Annual interest rates	March 31, 2025		December 31, 2024
Export-Import Bank of Korea	Inter-Korean Cooperation Fund 1	Jul. 10, 2026	1.000 %	W	740		987
CA-CIB	Long-term commercial papers	Feb. 26, 2027	3.020 %		100,000
		May. 28, 2027	3.820 %		100,000		100,000
JPM	Long-term commercial papers	Feb. 28, 2025					100,000
DBS	Long-term commercial papers	Feb. 26, 2027	2.980 %		100,000
		May. 28, 2027	3.820 %		100,000		100,000
Shinhan Bank	Long-term commercial papers	May. 28, 2027	4.090 %		100,000		100,000
Subtotal					500,740		400,987
Less: Current portion					(493	)	(100,493	)
Net				W	500,247		300,494

1 The above Inter-Korean Cooperation Fund is repayable in installments over 13 years after a 7-year grace period.

(2) Repayment schedule of the Companys debentures and borrowings including the portion of current liabilities as of March 31, 2025, is as follows:

(In millions of Korean won)	Bonds — In local currency	In foreign currency	Sub-total	Borrowings	Total
Apr. 1, 2025 ~ Mar. 31, 2026	W	945,000	1,319,850	2,264,850	493	2,265,343
Apr. 1, 2026 ~ Mar. 31, 2027		540,000	1,255,300	1,795,300	200,247	1,995,547
Apr. 1, 2027 ~ Mar. 31, 2028		500,000	799,028	1,299,028	300,000	1,599,028
Apr. 1, 2028 ~ Mar. 31, 2029		345,000		345,000		345,000
After Apr. 1, 2029		1,350,000	146,650	1,496,650		1,496,650
Total	W	3,680,000	3,520,828	7,200,828	500,740	7,701,568

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KT Corporation

Notes to the Separate Interim Financial Statements

As of March 31, 2025 and 2024, and December 31, 2024

Provisions

Changes in provisions for the three-month periods ended March 31, 2025 and 2024, are as follows:

(In millions of Korean won)	2025
	Litigation		Restoration cost		Others		Total
Beginning balance	W	21,590		125,150		39,732		186,472
Increase (transfer)		27		399		7,488		7,914
Usage		(28	)	(233	)	(5,866	)	(6,127	)
Reversal				(127	)			(127	)
Ending balance	W	21,589		125,189		41,354		188,132
Less: Current		(21,589	)	(31,231	)	(39,671	)	(92,491	)
Non-current				93,958		1,683		95,641
(In millions of Korean won)	2024
	Litigation		Restoration cost		Others		Total
Beginning balance	W	25,879		115,747		40,728		182,354
Increase (transfer)				(326	)	33		(293	)
Usage		(2	)	(277	)	(125	)	(404	)
Reversal		(3,000	)	(313	)			(3,313	)
Ending balance	W	22,877		114,831		40,636		178,344
Less: Current		(22,877	)	(24,668	)	(40,552	)	(88,097	)
Non-current				90,163		84		90,247

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KT Corporation

Notes to the Separate Interim Financial Statements

As of March 31, 2025 and 2024, and December 31, 2024

Net Defined Benefit Liabilities

(1) The amounts recognized in the statements of financial position as of March 31, 2025 and December 31, 2024, are determined as follows:

(In millions of Korean won) — Present value of defined benefit obligations	March 31, 2025 — W	1,382,990		1,344,701
Fair value of plan assets		(1,300,885	)	(1,293,619	)
Liabilities, net	W	82,105		51,082

(2) Changes in the defined benefit obligations for the three-month periods ended March 31, 2025 and 2024, are as follows:

(In millions of Korean won) — Beginning	2025 — W	1,344,701	1,548,588
Current service cost		25,755	28,088
Interest expense		11,347	15,412
Benefits paid		1,187	(8,337	)
Ending	W	1,382,990	1,583,751

(3) Changes in the fair value of plan assets for the three-month periods ended March 31, 2025 and 2024, are as follows:

(In millions of Korean won) — Beginning	2025 — W	1,293,619		1,609,178
Interest income		11,152		16,042
Remeasurements on plan assets		444		1,019
Benefits paid		(4,330	)	(9,060	)
Ending	W	1,300,885		1,617,179

(4) Amounts recognized in the separate statements of profit or loss for the three-month periods ended March 31, 2025 and 2024, are as follows:

(In millions of Korean won) — Current service cost	2025 — W	25,755		28,088
Net interest expense		195		(630	)
Account transfers		(3,467	)	(3,613	)
Total expenses	W	22,483		23,845

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KT Corporation

Notes to the Separate Interim Financial Statements

As of March 31, 2025 and 2024, and December 31, 2024

Commitments and Contingencies

(1) As of March 31, 2025, major Covenants with local financial institutions are as follows:

(In millions of Korean won and foreign currencies in thousands) — Bank overdraft	Financial institution — Kookmin Bank and others	360,000
Working capital loan	Korea Development Bank and others	1,080,050	100,000
Inter-Korean Cooperation Fund	Export-Import Bank of Korea	37,700	740
Economic Cooperation Business Insurance	Export-Import Bank of Korea	3,240	1,732
Collateralized loan on electronic accounts receivable-trade	Kookmin Bank and others	247,000	15,517
Plus electronic notes payable	Industrial Bank of Korea	50,000	110
Derivatives transaction limit	Korea Development Bank and others	USD 2,120,000	USD 2,120,000
	Shinhan Bank and others	JPY 30,000,000	JPY 30,000,000
Total	KRW	1,777,990	118,099
	USD	2,120,000	2,120,000
	JPY	30,000,000	30,000,000

(2) As of March 31, 2025, guarantees received from financial institutions are as follows:

(In millions of Korean won and foreign currencies in thousands)	Warranty details	Limit
Hana Bank	Comprehensive credit line	W	2,900
			USD 8,700
Shinhan Bank	Guarantee for payment in foreign currency and others		USD 33,806
Kookmin Bank	Guarantee for payment in foreign currency		USD 3,186
Woori Bank	Guarantee for payment in foreign currency		USD 5,000
Korea Software Financial Cooperative	Advance payment/other guarantee and others		1,072,995
Information & Communication Financial Cooperative	Advance payment/other guarantee and others		700,000
Seoul Guarantee Insurance Company	Performance guarantee and others		22,902
Total	KRW		1,798,797
	USD		50,692

(3) The Company is jointly and severally obligated with KT Sat Co., Ltd. to pay KT Sat Co., Ltd.s liabilities incurred prior to its spin-off. As of March 31, 2025, the Company and KT Sat Co., Ltd. are jointly and severally liable for reimbursement of W 428 million.

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KT Corporation

Notes to the Separate Interim Financial Statements

As of March 31, 2025 and 2024, and December 31, 2024

(4) For the three-month period ended March 31, 2025, the Company entered into agreements with Securitization Specialty Companies (2025: First 5G 79 th Securitization Specialty Co., Ltd., 2024: First 5G 73 rd to 78 th Securitization Specialty Co., Ltd.) and disposed of its trade receivables related to handset sales. The Company also made asset management agreements with each securitization specialty company and in accordance with the agreement, the Company will receive asset management fees upon liquidation of the securitization specialty company.

(5) As of March 31, 2025, the Company is a defendant in 110 lawsuits with a total claimed amount of W 124,577 million (as of December 31, 2024: W 124,384 million). As of March 31, 2025, litigation provisions of W 21,589 million for pending lawsuits and unasserted claims are recorded as liabilities for potential loss in the ordinary course of business. The final outcomes of the cases cannot be estimated as of March 31, 2025 (Note 13).

(6) Under the agreement of bond issuance and borrowings, the Company is required to maintain certain financial ratios such as debt-to-equity ratio, use the funds for the designated purpose and report to the creditors periodically. The covenant also contains restrictions on provision of additional collateral and disposal of certain assets.

(7) As of March 31, 2025, the Company participates in Algerie Sidi Abdela new town development consortium (percentage of ownership: 2.5%) and has joint liability with other consortium participants.

(8) As of March 31, 2025, the contract amount of properties and equipment acquisition agreements made but not yet recognized amounts to W 334,188 million (December 31, 2024: W 344,566 million).

(9) The Company entered into an agreement with financial investors of Epsilon Global Communications Pte., Ltd. regarding the acquisition of shares contract. If certain conditions are not met in the future as disclosed in the terms and conditions of the agreement, financial investors may exercise the Tag-Along Right, Drag-Along Right, or the right to sell shares for the convertible preferred shares they hold (Note 6).

(10) The Company has an obligation for additional contributions as per agreement to Storm Ventures FUND VII and others. As of March 31, 2025, remaining amounts of USD 32,900 thousand and JPY 240,000 thousand will be invested through the Capital Call method in the future.

(11) The Company has the amount of W 201,615 million (40%) of joint responsibility obligation and W 302,423 million (60%) of obligation to provide financial support as a construction investor during the construction period with respect to K Defense Co., Ltd. established in accordance with the Private Investment Act on Social Infrastructure. During the operating period, the Company has the amount of W 438,312 million (100%) of obligation to provide financial support as an operating investor.

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KT Corporation

Notes to the Separate Interim Financial Statements

As of March 31, 2025 and 2024, and December 31, 2024

(12) The Company has an agreement related to a stock sale contract with HYUNDAI MOBIS Co., Ltd. and HYUNDAI MOTOR COMPANY. If the Company intends to dispose of the acquired stocks to a third party after a certain period has elapsed from the date of the contract, HYUNDAI MOBIS Co., Ltd. and HYUNDAI MOTOR COMPANY may exercise a preferential purchase right to designate a buyer with priority.

(13) During the prior period, the Company entered into an agreement with equity investors who participated in the equity acquisition contract of kt Cloud Co., Ltd. According to this agreement, if conditions per the agreement are met, the financial investor may exercise a Tag-Along or a Put-Option to the Company in the future. In relation to this contract, the Company and the financial investor may settle mutual profits if there is a difference between the final public offering price and the preliminary public offering price.

(14) As of March 31, 2025, the Company has the obligation of paying Minimum Guarantee as utilizing product bundling of Tving Co., Ltd., and the right to be paid a certain proportion of the excess as per agreement.

(15) As of March 31, 2025, the Company is in the progress of exercising a put option under the shareholders agreement with the Rwandan government.

(16) Details of investment properties provided as collateral as March 31, 2025 and 2024, are as follows:

(in millions of Korean won) — Collateral	March 31, 2025 — Carrying amount	Secured amount	Related account	Related amount	Mortgagee
Land and buildings	W	175,786	35,619	Deposit received	29,859	leaseholder
(in millions of Korean won)	December 31, 2024
Collateral	Carrying amount	Secured amount	Related account	Related amount	Mortgagee
Land and buildings	W	177,229	35,573	Deposit received	29,899	leaseholder

(17) The Company has established supplier finance agreements with some suppliers, and suppliers participating in the supplier finance agreement can receive early payment on invoices sent to the Company from the Companys external finance provider. The Company pays the finance provider in accordance with the usual payment terms to settle the debt. As of March 31, 2025, all financial liabilities subject to the supplier finance agreement are included in trade and other payables, and the carrying amount is W 8,566 million (December 31, 2024: W 55,815 million). None of this amount has been received by the supplier from the finance provider. There were no significant non-cash changes in the carrying amount of the trade and other payables subject to the Companys supplier finance agreement.

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KT Corporation

Notes to the Separate Interim Financial Statements

As of March 31, 2025 and 2024, and December 31, 2024

Leases

Information for leases when the Company acts as a lessee is as follows. Information on leases when the Company acts as a lessor is described in Note 9.

(1) The separate statements of financial position show the following amounts relating to leases:

(In millions of Korean won)	March 31, 2025
Right-of-use assets
Property and buildings	W	789,161	800,961
Machinery and communication line facilities		53,140	38,977
Others		16,450	56,361
Total	W	858,751	896,299

(In millions of Korean won)	March 31, 2025
Lease liabilities 1
Current	W	271,470	259,747
Non-current		455,645	499,996
Total	W	727,115	759,743

1 Included in the line item other current liabilities and non-current liabilities in the separate statements of financial position (Note 8).

For the three-month periods ended March 31, 2025 and 2024, right-of-use assets related to leases increased by W 83,180 million and W 72,183 million, respectively.

(2) The separate statements of profit or loss show the following amounts relating to leases:

(In millions of Korean won)	2025
Depreciation of right-of-use assets
Property and building	W	73,198	71,049
Machinery and communication line facilities		6,247	6,482
Others		2,529	7,816
Total	W 81,974	85,347
Interest expense relating to lease liabilities		6,110	9,564
Expense relating to Short-term leases		337	958
Expense relating to leases of low-value assets that are
not short-term leases		1,564	1,655

The total cash outflow for leases for the three-month periods ended March 31, 2025 and 2024 is W 85,338 million and W 93,901 million, respectively.

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KT Corporation

Notes to the Separate Interim Financial Statements

As of March 31, 2025 and 2024, and December 31, 2024

Retained Earnings

Details of retained earnings as of March 31, 2025 and December 31, 2024, are as follows:

(In millions of Korean won) — Legal reserve 1	March 31, 2025 — W	782,249	782,249
Voluntary reserves 2		4,651,362	4,651,362
Unappropriated retained earnings		6,531,410	6,284,318
Total	W	11,965,021	11,717,929

1 The Commercial Code of the Republic of Korea requires the Company to appropriate, as a legal reserve, an amount equal to a minimum of 10% of cash dividends paid until such reserve equals 50% of its issued share capital. The reserve is not available for the payment of cash dividends but may be transferred to share capital with the approval of the Companys Board of Directors or used to reduce accumulated deficits, if any, with the ratification of the Companys majority shareholders.

Other Components of Equity

(1) The Companys other components of equity as of March 31, 2025 and December 31, 2024, are as follows:

(In millions of Korean won) — Treasury stock	March 31, 2025 — W	(262,407	)	(215,210	)
Gain(Loss) on disposal of treasury stock				(57	)
Share-based compensation		8,869		7,106
Other		(180,862	)	(180,863	)
Total	W	(434,400	)	(389,024	)

(2) As of March 31, 2025 and December 31, 2024, details of treasury stock, are as follows:

Number of shares (in shares)	March 31, 2025	7,148,677	6,188,739
Amount (in millions of Korean won)	W	262,407	215,210

Treasury stock held as of March 31, 2025, is expected to be used for stock compensation for the Companys directors, employees, and for other purposes.

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KT Corporation

Notes to the Separate Interim Financial Statements

As of March 31, 2025 and 2024, and December 31, 2024

Revenue from Contracts with Customers and Relevant Contract Assets and Liabilities

(1) The Company has recognized the following amounts relating to revenue in the separate statement of profit or loss:

(In millions of Korean won) — Revenue from contracts with customers	2025 — W	4,624,966	4,637,699
Revenue from other sources		57,041	57,129
Total	W	4,682,007	4,694,828

(2) Operating revenues for the three-month periods ended March 31, 2025 and 2024, are as follows:

(In millions of Korean won) — Services provided	2025 — W	4,044,462	4,040,568
Sales of goods		637,545	654,260
Total	W	4,682,007	4,694,828

Revenue from services provided is recognized over time and revenue from sales of goods are recognized at a point in time.

(3) The Contract assets, liabilities and deferred revenue recognized in relation to the revenues from contracts with customers, are as follows:

(In millions of Korean won) — Contract assets 1	875,014	863,884
Contract liabilities 1	282,926	268,958
Deferred revenue 2	76,383	74,275

1 The Company recognized contract assets of W 153,831 and, contract liabilities of W 27,620 million for long-term construction contracts as of March 31, 2025 (as of December 31, 2024: contract assets and liabilities of W 128,376 million and W 26,060 million, respectively). The Company recognizes contract asset as trade receivables and other receivables, and contract liabilities as other current liabilities.

2 Deferred revenue related to government grants is excluded.

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KT Corporation

Notes to the Separate Interim Financial Statements

As of March 31, 2025 and 2024, and December 31, 2024

(4) The contract costs recognized as assets are as follows:

(In millions of Korean won) — Incremental cost of obtaining a contract	March 31, 2025 — W	1,707,479	1,650,500
Cost of contract performance		152,966	151,721
Total	W	1,860,445	1,802,221

As of March 31, 2025, the Company recognized W 461,532 million (three-month period ended March 31, 2024: W 463,295 million) of operating expenses related to contract cost assets.

(5) For the three-month periods ended March 31, 2025 and 2024, revenue recognized from contract liabilities and deferred revenue carried-forward from prior year, is as follows:

(In millions of Korean won)	2025
Revenue recognized from the beginning balance of contract liabilities
Allocation of the transaction price	W	52,379	57,680
Deferred revenue of joining/installment fees		11,210	10,610
Total	W	63,589	68,290

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KT Corporation

Notes to the Separate Interim Financial Statements

As of March 31, 2025 and 2024, and December 31, 2024

Operating Expenses

(1) Operating expenses for the three-month periods ended March 31, 2025 and 2024, are as follows:

(in millions of Korean won) — Employee benefit cost	2025 — W	460,190	540,720
Depreciation		614,857	600,497
Depreciation of right-of-use assets		81,974	85,347
Depreciation of intangible assets		113,653	119,458
Commissions		541,411	463,869
Interconnection charges		97,365	109,926
International interconnection fees		30,940	36,860
Purchase of inventories		626,716	618,426
Changes of inventories		34,474	57,861
Sales commission		625,476	620,600
Service cost		205,471	199,432
Purchase of contents		174,573	175,266
Utilities		95,197	93,362
Taxes and dues		50,064	51,200
Rent		29,957	27,885
Insurance premium		12,708	14,092
Installation fee		121,059	112,078
Advertising expenses		28,702	24,156
Research and development expenses		80,523	60,071
Allowance for bad debts		11,929	13,152
Others		244,654	276,797
Total	W	4,281,893	4,301,055

(2) Details of employee benefits for the three-month periods ended March 31, 2025 and 2024, are as follows:

(in millions of Korean won) — Salaries & Wages	2025 — W	424,641	495,882
Post-employment benefits (defined benefit plan)		22,483	23,845
Post-employment benefits (defined contribution plan)		9,503	12,354
Share-based payment		1,763	1,839
Others		1,800	6,800
Total	W	460,190	540,720

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KT Corporation

Notes to the Separate Interim Financial Statements

As of March 31, 2025 and 2024, and December 31, 2024

Other Income and Other Expenses

(1) Other income for the three-month periods ended March 31, 2025 and 2024, are as follows:

(in millions of Korean won) — Gain on disposal of property and equipment	2025 — W	9,782	17,262
Gain on disposal of right-of-use assets		416	375
Gain on disposal of intangible assets		1,641	99
Compensation on impairment of property and equipment		17,566	30,085
Gain on disposal of investments in subsidiaries, associates and joint ventures		2,225
Dividends received		28,083	33,973
Income from government subsidies		45	9,351
Others		4,836	8,722
Total	W	64,594	99,867

(2) Other expenses for the three-month periods ended March 31, 2025 and 2024, are as follows:

(in millions of Korean won) — Loss on disposal of property and equipment	2025 — W	13,018	13,751
Loss on disposal of right-of-use assets		850	294
Impairment loss on intangible assets		1,298	5,644
Donations		2,660	2,660
Others		9,763	25,922
Total	W	27,589	48,271

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KT Corporation

Notes to the Separate Interim Financial Statements

As of March 31, 2025 and 2024, and December 31, 2024

Financial Income and Costs

(1) Details of financial income for the three-month periods ended March 31, 2025 and 2024, are as follows:

(in millions of Korean won) — Interest income	2025 — W	46,600	56,811
Gain on foreign currency transactions		2,525	1,550
Gain on foreign currency translation		6,859	3,179
Gain on valuation of derivatives		5,814	113,882
Dividends income		26,095	29,219
Gain on disposal of financial instruments			4,464
Total	W	87,893	209,105

(2) Details of financial costs for the three-month periods ended March 31, 2025 and 2024, are as follows:

(in millions of Korean won) — Interest expenses	2025 — W	60,524	67,874
Loss on foreign currency transactions		1,608	1,446
Loss on foreign currency translation		2,620	118,552
Loss on derivative transactions		3,724
Loss on valuation of derivatives		7,183	93
Loss on disposal of trade receivables		1,006	360
Loss on disposal of financial instruments		26
Total	W	76,691	188,325

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KT Corporation

Notes to the Separate Interim Financial Statements

As of March 31, 2025 and 2024, and December 31, 2024

Income Tax Expense

Income tax expense is recognized based on the best estimate of the weighted average annual income tax rate expected for the full financial year. The estimated average annual effective income tax rate used for the year ending December 31, 2025, is 18.5%.

Earnings per Share

Basic earnings per share for the three-month periods ended March 31, 2025 and 2024, are calculated as follows:

(1) Basic Earnings per Share

Profit attributable to ordinary shares (in millions of Korean won)	2025 — W	365,377	354,031
Weighted average number of ordinary shares outstanding (In number of shares)		245,753,391	246,230,512
Basic earnings per share (In Korean won)	W	1,487	1,438

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KT Corporation

Notes to the Separate Interim Financial Statements

As of March 31, 2025 and 2024, and December 31, 2024

(2) Diluted Earnings per Share

Diluted earnings per share from operations is calculated by adjusting the weighted average number of ordinary shares outstanding assuming that all dilutive potential ordinary shares are converted into ordinary shares. The Company has dilutive potential ordinary shares from other share-based compensation.

Profit attributable to ordinary shares (in millions of Korean won)	2025 — W	365,377	354,031
Diluted profit attributable to ordinary shares (in millions of Korean won)	W	365,377	354,031
Number of dilutive potential ordinary shares outstanding (In number of shares)		101,557	134,369
Weighted average number of ordinary shares outstanding (In number of shares)		245,854,948	246,364,881
Diluted earnings per share (in Korean won)	W	1,486	1,437

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KT Corporation

Notes to the Separate Interim Financial Statements

As of March 31, 2025 and 2024, and December 31, 2024

Cash Generated from Operations

(1) Cash flows from operating activities for the three-month periods ended March 31, 2025 and 2024, are as follows:

(In millions of Korean won) — 1. Profit for the period	2025 — W	365,377		354,031
2. Adjustments for:
Income tax expense		82,944		112,118
Interest income		(46,600	)	(56,811	)
Interest expense		60,524		68,212
Dividend income		(54,178	)	(63,192	)
Depreciation		626,410		610,372
Amortization of intangible assets		114,926		121,746
Depreciation of right-of-use assets		81,974		85,347
Provisions for severance benefits (defined benefits)		25,950		27,458
Impairment losses on trade receivables		14,578		22,226
Gain on disposal of investments in subsidiaries, associates and joint ventures		(2,225	)
Loss (gain) on disposal of property and equipment		3,236		(3,511	)
Gain (loss) on disposal of intangible assets		(343	)	5,545
Loss (gain) on disposal of right-of-use assets		434		(81	)
Gain (loss) on foreign currency translation		(4,239	)	115,373
Loss (gain) on valuation and settlement of derivatives, net		5,093		(113,789	)
Loss (gain) on disposal of financial assets at fair value through profit or loss		25		(4,465	)
Others		3,162		4,321
3. Changes in operating assets and liabilities
Increase in trade receivables		(210,816	)	(251,103	)
Decrease in other receivables		12,539		12,283
Increase in other current assets		(190,275	)	(131,537	)
Decrease in other non-current assets		56,970		24,814
Decrease in inventories		59,281		77,858
Increase (decrease) in trade payables		(732	)	119,605
Decrease in other payables		(115,947	)	(224,997	)
Increase (decrease) in other current liabilities		25,788		(54,715	)
Increase (decrease) in other non-current liabilities		4,896		(2,343	)
Increase in provisions		1,745		134
Decrease in deferred revenue		(5,959	)	(3,557	)
Payment of post-employment benefits (defined benefits)		(200,079	)	(117,423	)
Decrease in plan assets		184,984		129,275
4. Cash generated from operations (1+2+3)	W	899,443		863,194

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KT Corporation

Notes to the Separate Interim Financial Statements

As of March 31, 2025 and 2024, and December 31, 2024

(2) Significant transactions not affecting cash flows for the three-month periods ended March 31, 2025 and 2024, are as follows:

(In millions of Korean won) — Reclassification of the current portion of borrowings	509,730		679,726
Reclassification of construction-in-progress to property and equipment	417,573		324,467
Change of other payables relating to acquisition of property and equipment	(316,729	)	(101,419	)
Change of other payables relating to acquisition of intangible assets	(272,955	)	(272,955	)
Reclassification of other payables from net defined benefit assets	(20,611	)	11,128
Increase in dividends payable	122,836		482,970

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KT Corporation

Notes to the Separate Interim Financial Statements

As of March 31, 2025 and 2024, and December 31, 2024

Changes in Liabilities Arising from Financing Activities

(In millions of Korean won)	2025
					Others
	Beginning		Cash flows		Acquisition	Changes in FX rate		Fair value change		Other changes		Ending
Borrowings	W	7,871,919		(189,590	)		(5,436	)			3,756		7,680,649
Lease liabilities		759,743		(79,032	)	88,900					(42,496	)	727,115
Derivative assets		(442,144	)	(3,724	)				(18,774	)	3,724		(460,918	)
Total	W	8,189,518		(272,346	)	88,900	(5,436	)	(18,774	)	(35,016	)	7,946,846

(In millions of Korean won)	2024
					Others
	Beginning		Cash flows		Acquisition	Changes in FX rate		Fair value change	Other changes		Ending
Borrowings	W	7,559,933		(111,547	)		117,090			1,639		7,567,115
Lease liabilities		851,610		(82,466	)	79,985				(8,668	)	840,461
Derivative liabilities		23,077					93		19	(22,417	)	772
Derivative assets		(156,774	)				(113,078	)	5,246	22,417		(242,189	)
Total	W	8,277,846		(194,013	)	79,985	4,105		5,265	(7,029	)	8,166,159

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KT Corporation

Notes to the Separate Interim Financial Statements

As of March 31, 2025 and 2024, and December 31, 2024

Related Party Transactions

(1) The list of related parties of the Company as of March 31, 2025, is as follows:

Relationship	Name of Entity
Subsidiaries	80 entities including KT Estate Inc., KT Skylife Co., Ltd., BC Card Co., Ltd.
Associates and joint ventures	49 entities including K Bank Inc., KIF Investment Fund, Megazone Cloud Corporation
Others 1	Goody Studio Co., Ltd., Rebellion Inc., Digital Pharm Co., Ltd., Mastern No.127 Logispoint Daegu Co., Ltd., KORAMKO No. 143 General Private Real Estate Investment Company, etc.

1 Included within the scope of related parties under Korean IFRS 1024 due to the presence of significant influence, even though treated in accordance with Korean IFRS 1109

(2) The amount of the installment handset sales receivable inherited from KTIS Corporation, KTCS Corporation, KT Telecop Co., Ltd., KT M&S Co., Ltd. and KT Service Nambu Co., Ltd. For three-month period ended March 31, 2025 is W 124,614 million.

(3) The Company has entered into an additional agreement in relation to providing communication service in wholesale with KT M Mobile Co., Ltd. in connection with the agreement, the Company offsets all or partial receivables against payables for joining mobile telecommunication services and usage of network arising from telecommunication operations.

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KT Corporation

Notes to the Separate Interim Financial Statements

As of March 31, 2025 and 2024, and December 31, 2024

(4) Outstanding balances of receivables and payables in relation to transaction with related parties as of March 31, 2025 and December 31, 2024, are as follows:

(In millions of Korean won)	March 31, 2025
	Receivables			Payables
	Trade receivables	Loans and others	Other receivables	Trade payables	Other payables	Lease liabilities
Subsidiaries
KT Telecop Co., Ltd.	W	823		96	2	33,783
KTCS Corporation		140		5,502		55,757	4
KTIS Corporation		13,078				51,172
KT Service Bukbu Co., Ltd.		39				19,011
KT Service Nambu Co., Ltd.					312	33,566
KT Skylife Co., Ltd.		26,577		12,595		15,093
KTDS Co., Ltd.		1,095		6,484	15	92,285
KT Estate Inc.		5		48,510		6,708	20,929
KT ENA Co., Ltd. (formerly. Skylife TV Co., Ltd.)		1,345		154		1,909
BC Card Co., Ltd. 1		443		4,619		11,048	5
KT Sat Co., Ltd.		1,400				1,167
KT Alpha Co., Ltd.		5,568		19		5,362
KT Commerce Inc.		18		121	1,821	13,748	6,808
KT M&S Co., Ltd.		80	7,088	82		50,024
KT GENIE Music Corporation (formerly. GENIE Music Corporation.)		13		18,576		22,827
KT M Mobile Co., Ltd.		47,431		66	1,105	1,214
kt Nasmedia, Inc. (formerly. Nasmedia, Inc.)		1,131		3,487		47
KT MOS Bukbu Co., Ltd.		64		222		9,865
KT MOS Nambu Co., Ltd.				119		10,411
KT Engineering Co., Ltd		17		924		27,240
KT Studio Genie Co., Ltd.		44		2		9,029
kt Cloud Co., Ltd.		13,123		1		59,859	242
East Telecom LLC		5,083	15,454		89
kt netcore Co., Ltd		148		6	18,101	66,198
kt p&m Co., Ltd		25				12,934
Others		23,535		5,422	3,488	11,122	12
Associates and joint ventures
K Bank Inc.		873		2,683
Others		466		14		455	857
Total	W	142,564	22,542	109,704	24,933	621,834	28,857

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KT Corporation

Notes to the Separate Interim Financial Statements

As of March 31, 2025 and 2024, and December 31, 2024

(In millions of Korean won)	December 31, 2024
	Receivables			Payables
	Trade receivables	Loans and others	Other receivables	Trade payables	Other payables	Lease liabilities
Subsidiaries
KT Linkus Co., Ltd.	W			2		11,050
KT Telecop Co., Ltd.		224		978	1,137	29,487
KTCS Corporation		186		5,466		53,067	4
KTIS Corporation		12,956				46,564
KT Service Bukbu Co., Ltd.		19		3		24,652
KT Service Nambu Co., Ltd.						25,537
KT Skylife Co., Ltd.		27,816		5,223		20,335
KTDS Co., Ltd.		1,067		2,005		135,524
KT Estate Inc.		581		42,422		22,115	3,743
KT ENA Co., Ltd. (formerly. Skylife TV Co., Ltd.)		1,006		1,541		5,018
BC Card Co., Ltd. 1		4,402		6		12,288	5
KT Sat Co., Ltd.		1,266				1,309
KT Alpha Co., Ltd.		5,738		25	2,081	5,516
KT Commerce Inc.		14		99	8,640	23,215	6,007
KT M&S Co., Ltd.		223	8,400	71		52,773
KT GENIE Music Corporation. (formerly. GENIE Music Corporation.)		1		14,715		14,996
KT M Mobile Co., Ltd.		49,224		51		4,016
kt Nasmedia, Inc. (formerly. Nasmedia, Inc.)		1,549		1		42
KT MOS Bukbu Co., Ltd.		64		736		15,122
KT MOS Nambu Co., Ltd.				211		12,881
KT Engineering Co., Ltd				367	2,965	123,402
KT Studio Genie Co., Ltd.		15		4,825	1,235	30,524
kt Cloud Co., Ltd.		31,683		274		47,789	345
East Telecom LLC		5,811	15,307		89
Others		15,099		1,871	2,746	13,071	18
Associates and joint ventures
K Bank Inc.		518		3,706		1
Others		247		20	117	365	963
Total	W	159,709	23,707	84,618	19,010	730,659	11,085

1 As of March 31, 2025, the unsettled amount of W 10,971 million (December 31, 2024: W 12,145 million) in credit card transaction with BC Card Co., Ltd. is included in trade payables.

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KT Corporation

Notes to the Separate Interim Financial Statements

As of March 31, 2025 and 2024, and December 31, 2024

(5) Significant transactions with related parties for the three-month periods ended March 31, 2025 and 2024, are as follows:

(In millions of Korean won)	2025 — Sales		Purchases		Acquisition of right-of-use assets	Finance income	Finance costs	Dividends received
	Operating revenue	Other income	Operating expenses	Others 1
Subsidiaries
KT Telecop Co., Ltd. 1	W	2,197		36,851	700
KTCS Corporation 1		30,354		85,167	18				318
KTIS Corporation		21,483		85,358					1,224
KT Service Bukbu Co., Ltd. 1		3,431		53,074	480
KT Service Nambu Co., Ltd. 1		4,934	4	78,560	1,371
KT Skylife Co., Ltd. 1		34,209		4,105	15				8,368
KTDS Co., Ltd. 1		3,316		101,325	5,654				6,096
KT Estate Inc. 1		11,281		19,041	5	24,658		193	6,876
KT ENA Co., Ltd. (formerly. Skylife TV Co., Ltd.) 1		2,766		2,684	1,400
BC Card Co., Ltd.		2,252	20	6,897
KT Sat Co., Ltd.		1,723		2,562
KT Alpha Co., Ltd.		16,047		9,090			1
KT Commerce Inc. 1		306		20,238	10,494	2,017		130
KT M&S Co., Ltd.		53,661	6	68,051
KT GENIE Music Corporation. (formerly. GENIE Music Corporation.)		113		12,385
KT M Mobile Co., Ltd.		68,268	26	1,077
kt Nasmedia, Inc. (formerly. Nasmedia, Inc.)		55		265					3,487
KT MOS Nambu Co., Ltd. 1		647		23,007	918
KT MOS Bukbu Co., Ltd. 1		921		22,609	584
KT Engineering Co., Ltd. 1		177		7,999	15,545
KHS Corporation		5		3,476
KT Studio Genie Co., Ltd. 1		542		2,507	16,961
kt Cloud Co., Ltd.		19,221		54,559				3
kt netcore Co., Ltd. 2		829		50,207	42,448
kt p&m Co., Ltd. 2		224		10,807	4,501
Others 3		20,176	13	28,331	811	10	2		1,699
Associates and joint ventures
K Bank Inc.		2,471		2
Others 4		619		9,379			1	12
Others
Others		1
Total	W	302,229	69	799,613	101,905	26,685	4	338	28,068

1 The amount of acquisition of properties, equipment and others is included.

2 kt netcore Co., Ltd. and kt p&m Co., Ltd. were established in the fourth quarter of 2024.

3 Transactions with KT Linkus Co., Ltd. and Initech Co., Ltd. before they were excluded from subsidiaries are included.

4 Transactions with Trustay Co., Ltd. before it was excluded from associates and joint ventures are included.

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KT Corporation

Notes to the Separate Interim Financial Statements

As of March 31, 2025 and 2024, and December 31, 2024

(In millions of Korean won)	2024 — Sales		Purchases		Acquisition of right-of-use assets	Finance income	Finance costs	Dividends received
	Operating revenue	Other income	Operating expenses	Others 1
Subsidiaries
KT Linkus Co., Ltd.	W	1,373		14,623
KT Telecop Co., Ltd.		1,597		33,929			1
KTCS Corporation		26,473	1	87,802					318
KTIS Corporation 1		17,551	80	77,918	255				1,224
KT Service Bukbu Co., Ltd. 1		3,745		52,822	460
KT Service Nambu Co., Ltd. 1		4,713		64,011	607
KT Skylife Co., Ltd. 1		38,742	1	4,380	16				8,368
KTDS Co., Ltd. 1		3,389		100,205	12,957				4,848
KT Estate Inc. 1		10,753		20,212	79	24,251		226	8,600
KT ENA Co., Ltd. (formerly. Skylife TV Co., Ltd.)		4,041		2,489
BC Card Co., Ltd.		2,262		7,518			1		4,590
KT Sat Co., Ltd.		1,867		2,819
KT Alpha Co., Ltd.		15,183		10,736			1
KT Commerce Inc. 1		297		16,951	19,509
KT M&S Co., Ltd.		86,846	8	63,941
KT GENIE Music Corporation. (formerly. GENIE Music Corporation.)		89		13,658
KT M Mobile Co., Ltd.		60,823	17	754
kt Nasmedia, Inc. (formerly. Nasmedia, Inc.)		71		709					3,487
KT MOS Nambu Co., Ltd. 1		463		22,696	1,085
KT MOS Bukbu Co., Ltd. 1		747		22,689	533
KT Engineering Co., Ltd. 1		1,505		10,654	22,632
KHS Corporation		3		1,988
KT Studio Genie Co., Ltd. 1		27		629	14,215
kt Cloud Co., Ltd.		24,608		41,209		1		3
Others		6,714	357	25,457	2	10	1		2,538
Associates and joint ventures
K Bank Inc.		601		51			918
Others		757		1,244		14		20	287
Others
Rebellions Co., Ltd.		5
Total	W	315,245	464	702,094	72,350	24,276	922	249	34,260

1 Amounts include acquisition of property and equipment and others.

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KT Corporation

Notes to the Separate Interim Financial Statements

As of March 31, 2025 and 2024, and December 31, 2024

(6) Key management compensation for the three-month periods ended March 31, 2025 and 2024, consists of:

(In millions of Korean won) — Short-term benefits	2025 — W	435	406
Post-employment benefits		70	48
Stock-based compensation		183	82
Total	W	688	536

(7) Fund transactions with related parties for the three-month periods ended March 31, 2025 and 2024, are as follows:

(In millions of Korean won)	2025
	Loan transactions		Borrowing transactions 1		Equity contributions in cash and others
	Loans	Collections	Borrowings	Repayments
Subsidiaries
KT M&S Co., Ltd.	W	14,700	16,013
KT Estate Inc.				58	6,376
Others				2,026	1,272	(1,156	)
Associates and joint ventures
IBK-KT Young Entrepreneurs MARS Investment Fund						5,000
Others Investment Association					114	525
Total	W	14,700	16,013	2,084	7,762	4,369

1 Borrowing transactions include lease transactions.

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KT Corporation

Notes to the Separate Interim Financial Statements

As of March 31, 2025 and 2024, and December 31, 2024

(In millions of Korean won)	2024
	Loan transactions		Borrowing transactions 1		Equity contributions in cash and others
	Loans	Collections	Borrowings	Repayments
Subsidiaries
KT M&S Co., Ltd.	W	14,700	16,013
KT Estate Inc.					6,317
Others					220
Associates and joint ventures
IBK-KT Young Entrepreneurs MARS Investment Fund						5,000
KT-IBKC Future Investment Fund 1						(1,820	)
Others Investment Association					10
Total	W	14,700	16,013		6,547	3,180

1 Lease transactions are included in borrowing transactions

(8) As of March 31, 2025, the Company has entered into a credit card agreement with a limit of W 18,409 million (December 31, 2024: W 18,481 million) with BC Card Co., Ltd.

(9) The Company has an obligation to invest in KIAMCO Data Center Development Real Estate General Private Placement Investment Blind Trusts, a related party, and other entities according to the agreement. As of March 31, 2025, the Company is planning to make an additional investment of W 44,690 million.

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KT Corporation

Notes to the Separate Interim Financial Statements

As of March 31, 2025 and 2024, and December 31, 2024

Fair Value

During the period ended March 31, 2025, there have been no significant changes in the business or economic environment that affect the fair value of the Companys financial assets and liabilities.

(1) Fair Value by Financial Instruments Category

Carrying amount and fair value of financial instruments by category as of March 31, 2025 and December 31, 2024, are as follows:

(In millions of Korean won)	March 31, 2025 — Carrying amount	Fair value	Carrying amount	Fair value
Financial assets
Cash and cash equivalents	W	1,150,640	1	1,540,570	1
Trade and other receivables
Financial assets measured at amortized cost		3,176,997	1	3,099,178	1
Financial assets at fair value through other comprehensive income		273,612	273,612	114,774	114,774
Other financial assets
Financial assets measured at amortized cost		133,303	1	80,465	1
Financial assets at fair value through profit or loss		453,506	453,506	456,224	456,224
Financial assets at fair value through other comprehensive income		1,452,645	1,452,645	1,458,891	1,458,891
Derivative financial assets for hedging purpose		460,918	460,918	442,144	442,144
Total	W	7,101,621		7,192,246
Financial liabilities
Trade and other payables	W	3,961,012	1	4,315,375	1
Borrowings		7,680,649	7,645,924	7,871,919	7,769,937
Other financial liabilities
Financial liabilities at fair value through profit or loss		28	28	28	28
Total	W	11,641,689		12,187,322

1 The Company did not conduct fair value estimation as the book amount is a reasonable approximation of the fair value.

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KT Corporation

Notes to the Separate Interim Financial Statements

As of March 31, 2025 and 2024, and December 31, 2024

(2) Fair Value Hierarchy

Financial instruments that are measured at fair value are categorized by the fair value hierarchy, and the defined levels are as follows:

Level 1: The quoted (unadjusted) price in active markets for identical assets or liabilities that an entity can access at the measurement date.

Level 2: All inputs other than quoted prices included in Level 1 that are observable (either directly that is, or indirectly that is, derived from prices) for the asset or liability.

Level 3: The unobservable inputs for the asset or liability.

Fair value hierarchy classifications of the financial assets and financial liabilities that are measured or disclosed at fair value or its fair value is disclosed as of March 31, 2025 and December 31, 2024, are as follows:

(In millions of Korean won)	March 31, 2025 — Level 1	Level 2	Level 3	Total
Assets
Trade and other receivables
Financial assets at fair value through other comprehensive income	W		273,612		273,612
Other financial assets
Financial assets at fair value through profit or loss				453,506	453,506
Financial assets at fair value through other comprehensive income		1,311,630		141,015	1,452,645
Derivative financial assets for hedging			460,918		460,918
Total	W	1,311,630	734,530	594,521	2,640,681
Liabilities
Borrowings	W		7,645,924		7,645,924
Other financial liabilities
Financial liabilities at fair value through profit or loss				28	28
Total	W		7,645,924	28	7,645,952

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KT Corporation

Notes to the Separate Interim Financial Statements

As of March 31, 2025 and 2024, and December 31, 2024

(In millions of Korean won)	December 31, 2024 — Level 1	Level 2	Level 3	Total
Assets
Trade and other receivables
Financial assets at fair value through other comprehensive income	W		114,774		114,774
Other financial assets
Financial assets at fair value through profit or loss				456,224	456,224
Financial assets at fair value through other comprehensive income		1,317,876		141,015	1,458,891
Derivative financial assets for hedging			442,144		442,144
Total	W	1,317,876	556,918	597,239	2,472,033
Liabilities
Borrowings	W		7,769,937		7,769,937
Other financial liabilities
Financial assets at fair value through profit or loss				28	28
Total	W		7,769,937	28	7,769,965

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KT Corporation

Notes to the Separate Interim Financial Statements

As of March 31, 2025 and 2024, and December 31, 2024

(3) Transfers between Fair Value Hierarchy Levels of Recurring Fair Value Measurements

1) Details of transfers between Level 1 and Level 2 of the fair value hierarchy for recurring fair value measurements.

There are no transfers between Level 1 and Level 2 of the fair value hierarchy for the recurring fair value measurements.

2) Details of changes in Level 3 of the fair value hierarchy for the recurring fair value measurements.

Details of changes in Level 3 of the fair value hierarchy for recurring fair value measurements for the three-month periods ended March 31, 2025 and 2024 are as follows:

(In millions of Korean won)	2025
	Financial assets				Financial liabilities
	Financial assets at FVTPL		Financial assets at FVOCI		Financial liabilities at FVTPL
Beginning balance	W	456,224		141,015		28
Acquisition		291
Transfer				145
Disposal		(3,009	)	(145	)
Ending balance	W	453,506		141,015		28

(In millions of Korean won)	2024
	Financial assets			Financial liabilities
	Financial assets at FVTPL		Financial assets at FVOCI	Financial liabilities at FVTPL
Beginning balance	W	441,321		201,189	1,403
Acquisition		4,060
Transfer		(950	)
Disposal		(596	)
Ending balance	W	443,835		201,189	1,403

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KT Corporation

Notes to the Separate Interim Financial Statements

As of March 31, 2025 and 2024, and December 31, 2024

(4) Valuation Techniques and Inputs

Valuation techniques and inputs used in the recurring and non-recurring fair value measurements categorized within Level 2 and Level 3 of the fair value hierarchy as of March 31, 2025 and December 31, 2024, are as follows:

(In millions of Korean won)	March 31, 2025 — Fair value	Level		Valuation techniques
Assets
Trade and other receivables
Financial assets at fair value through other comprehensive income	W	273,612	2	DCF Model
Other financial assets
Financial assets at fair value through profit or loss		453,506	3	DCF Model, Adjusted Net Asset Model, Market
Approach Model, Binomial Option Pricing Model, T-F Model
Financial assets at fair value through other comprehensive income		141,015	3	DCF Model
Derivative financial assets for hedging		460,918	2	DCF Model
Liabilities
Borrowings	W	7,645,924	2	DCF Model
Other financial liabilities
Financial assets at fair value through profit or loss		28	3	Binomial Option Pricing Model

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KT Corporation

Notes to the Separate Interim Financial Statements

As of March 31, 2025 and 2024, and December 31, 2024

(In millions of Korean won)	December 31, 2024 — Fair value	Level		Valuation techniques
Assets
Trade and other receivables
Financial assets at fair value through other comprehensive income	W	114,774	2	DCF Model
Other financial assets
Financial assets at fair value through profit or loss		456,224	3	DCF Model, Adjusted Net Asset Model, Market
Approach Model, Binomial Option Pricing Model, T-F Model
Financial assets at fair value through other comprehensive income		141,015	3	DCF Model
Derivative financial assets for hedging		442,144	2	DCF Model
Liabilities
Borrowings	W	7,769,937	2	DCF Model
Other financial liabilities
Financial assets at fair value through profit or loss		28	3	Binomial Option Pricing Model

(5) Valuation Processes for Fair Value Measurements Categorized Within Level 3

The Company engages external experts that perform the fair value measurements required for financial reporting purposes. External experts report directly to the chief financial officer (CFO) and discuss valuation processes and results with the CFO in line with the Companys closing dates.

Table of Contents

KT Corporation

Notes to the Separate Interim Financial Statements

As of March 31, 2025 and 2024, and December 31, 2024

Events After the Reporting Period

The Company has decided on a quarterly dividend at the Board of Directors dated April 15, 2025, and the details are as follows.

Type	Details
Dividend per share	W 600 (Total dividend: W 146,984 million)
Dividend yield	1.2%
Dividend report date	March 31, 2025
Dividend pay date	April 30, 2025

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