Profile: KT Corp (KT)

KT on New York Consolidated

2 Sep 2015
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KT Corporation, incorporated on December 10, 1981, is a telecommunications service provider. The Company's principal services include mobile service and fixed-line services, including fixed-line telephone services, broadband Internet access service and data communication services. The Company's operating segments include the Customer/Marketing Group, which engages in providing various telecommunication services to individual/home customers and the convergence business; the Enterprise Sales Group, which engages in telecommunication services for the global market and corporate customers, as well as data communication service; the Finance/Rental Business Group, which engages in providing various financial services, such as credit card and lending, and also engages in the automobile rental and leasing business, and others, which include security services, satellite service, information technology and network services, satellite television service and real estate development businesses.

The Company's principal services include mobile voice and data telecommunications services; fixed-line services, which include telephone services, including local, domestic long-distance and international long-distance fixed-line telephone services and interconnection services to other telecommunications companies; broadband Internet access service and other Internet-related services, and data communication service, including leased line service and dedicated broadband Internet connection services to institutional customers. It also offers credit card processing and other financial services through KT Capital Co., Ltd. and BC Card Co., Ltd., and various other services, including satellite service and information technology, real estate business, satellite television service, media contents business and network services, such as cloud computing services.

Mobile Service

The Company provides mobile services, which are third-generation, high-capacity wireless Internet and video multimedia communications services. As of December 31, 2014, revenues related to its mobile services accounted for 29.9% of its operating revenues. In addition, its goods sold, which are primarily from mobile handset sales, accounted for 14.7% of its operating revenues. The Company markets its mobile services primarily through independent dealers located throughout Korea. As of December 31, 2014, there were approximately 2,500 shops managed by its independent dealers. In addition to assisting new subscribers to activate mobile service and purchase handsets, dealers are connected to its database and are able to assist customers with account information.

Fixed-line Services

The Company provides a range of fixed-line communication services, including various telephone services, broadband and other Internet services and data communication services. The Company utilizes its nationwide telephone network to provide fixed-line telephone services, which consist of local, domestic long-distance, international long-distance services and land-to-mobile interconnection services. These fixed-line telephone services accounted for 11.0% of its operating revenues, as of December 31, 2014. Its telephone network includes exchanges, long-distance transmission equipment and fiber optic and copper cables. The Company provides Internet phone services that enable phone devices with broadband connection to make domestic and international calls. The Company provides value-added services, such as video communication, short message service, phone banking and a range of traffic and local news information.

The Company's broadband Internet access service accounted for 8.2% of its operating revenues, as of December 31, 2014. Its principal Internet access services include olleh Internet and olleh GiGA Internet brand names; wireless land area network (LAN) service (or Wi-Fi) under the ollehWiFi brand name, which is designed to integrate fixed-line and wireless services by offering high speed wireless Internet access to laptops and smartphones in hot-spot zones and olleh Internet service in fixed-line environments. OllehWiFi enables subscribers to access the Internet at a speed of up to 1.3 giga bytes per second. olleh 4G WiBro Internet access service enables two-way wireless broadband Internet access to portable computers, mobile phones and other portable devices at a speed averaging 6 giga bytes per second per user.

The Company's other Internet-related services focus primarily on providing infrastructure and solutions for business enterprises, as well as network portal services. Its other Internet-related services accounted for 4.9% of its operating revenues, as of December 31, 2014. The Company operates seven Internet data centers located throughout Korea and provides a range of computing services to companies, which need servers, storage and leased lines. Its Internet data centers offer network outsourcing services, server operation services and system support services. Its network outsourcing services include co-location, which is the installation of its customers' network equipment at its Internet data centers. Its server operation services include optimal server management service and technical support service the Company provides with respect to the leased servers that are linked directly to its Internet backbone switch. The Company also leases servers and network equipment. Its system support services include providing system resources for a range of Internet computing services, such as application transfer, network storage, video streaming and application download, as well as sending short text messages and messages containing multimedia objects, such as images, audio and video.

The Company also offers a service called Bizmeka to develop and commercialize business-to-business solutions targeting small- and medium-sized business enterprises in Korea. Bizmeka is an applied application service provider, which provides specialized business solutions, including integrated business administration solutions and intranet collaboration solutions. The Company also offers high definition video-on-demand and real-time broadcasting Internet protocol television (IPTV) services under the brand name olleh TV and ultra-high-definition (UDH) IPTV services under the brand name olleh GiGA UHD TV. Its IPTV service offers access to an array of digital media contents, including movies, sports, news, educational programs and television replay. Through a digital set-top box that the Company rents to its customers, its customers browse the catalogue of digital media contents and view selected media streams on their television.

The Company's data communications service involves offering lines that allow point-to-point connection for voice and data traffic between two or more geographically separate points. As of December 31, 2014, the Company leased 231,436 lines to domestic and international businesses. The data communication service accounted for 4.8% of its operating revenues in 2014. The Company provides dedicated and secure broadband Internet connection service to institutional customers under the Kornet brand name. The Company provides high-speed connection up to 10.0 giga bytes per second connected to its Internet backbone network, as well as rents to its customers and installs necessary routers. The Company's customers include small- and medium-sized enterprises, businesses engaging in Internet access services and government agencies.

Financial Services

The Company owns a 69.54% interest in BC Card Co., Ltd. as of December 31, 2014. BC Card Co., Ltd. offers various credit card and related financial services. Financial Services accounted for 17.2% of its operating revenues in 2014.

Automobile Rental Services

The Company also operates KT Rental, a subsidiary that provides rental cars and equipment. KT Rental operated approximately 122,000 vehicles, as of December 31, 2014. Automobile rental services accounted for 3.3% of its operating revenues in 2014.

Miscellaneous Businesses

The Company also engages in various business activities, such as satellite services, information technology and network services, real estate development, satellite television services, through KT Skylife Co. and media contents business through KT Media Hub Co., Ltd. Its miscellaneous businesses accounted for 6.1% of its operating revenues for 2014. The Company provides transponder leasing, broadcasting, video distribution and data communications services through its satellites. The Company operates two satellites, Koreasat 5 and Koreasat 6 (also known as olleh 1), and owns interests in one additional satellite, Koreasat 8. Koreasat 6 carries transponders that are used for direct-to-home satellite broadcasting, video distributions and data communications services.

The Company also leases satellite capacity from other satellite operators to offer satellite services to both domestic and international customers. The Company offers an array of integrated information technology and network services to its business customers. Its range of services includes consulting, designing, building and maintaining systems and communication networks. The Company owns land and real estate in various locations nationwide. It is also engaged in the planning and development of commercial and office buildings and condominiums on its unused sites, as well as in the leasing of buildings the Company owns.

The Company competes with SK Telecom, LG U+, SK Broadband, Onse Telecom Corporation and SK Telink.

Company Address

KT Corp

KT Main Office
90, Buljeong-ro, Bundang-gu
SEONGNAM     463815
P: +8231.7270114
F: +822.34955914

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