2011 KT Sustainability Report

Report Outline
Objective
This is the sixth issue of kt’s Sustainability Report which is
intended to provide information on our efforts and activities
toward a sustainable world. This report aims at helping our
Black 배경 stakeholders understand our sustainability management
by viewing economic profitability, social responsibility, and
environmental soundness in an integrated manner. We plan
to reflect the voices of our stakeholders to create new values
and implement sustainability management more actively.
Report Framework
This report is largely comprised of four sections such
as sustainability management, economy, society, and
environment. To enhance stakeholders’ understandability,
the triple bottom line section is classified into six parts;
investors, customers, employees, suppliers, society, and
environment. Our sixth sustainability report was prepared
by CSR Team with the cooperation of the working-level staff
from the pertinent teams.
Guidelines and Assurance

This report has been created in reference to the G3.1
standards of Global Reporting Initiative. It also contains
information related to ISO 26000 which was disclosed in
November 2010. To secure inclusiveness, materiality, and
responsiveness, this report received third party assurance.
The assurance statement is on page 94.
Period and Scope

This report covers the period from January 1 to December
31, 2010. It also contains activities and plans for 2011 when
deemed necessary. The reporting scope is the activities
and performances carried out by the business sites in Korea.
We plan to publish the report annually.
This report was printed with bean oil on environmental-friendly paper.

Black 배경
Report Outline Mid-term Growth Strategy 6 At a Glance 12 Creation of New Growth Engine 24
BOD Chairman Message 2 Improving Rate Structure 7 kt’s Value System 14 Economic Performance 26
CEO Message 3 Work & Life Balance 8 Corporate Governance 15 Brand Value 28
Stakeholder Engagement 4 Partnering for Growth 9 Sustainability Management 16 Innovative Management 30
Materiality Test 5 Local Community-Focused Social Contribution 10 Ethical Management 18 Global Sustainability Management 32
Promoting Environment-Friendly Management 11 Risk Management 20 Shareholder Communication 33
CS Management System 36 Great Work Place 46 Partnering for Growth 58 Social Contribution System 68
kt’s 2011 Sustainability Report was prepared based VOC as Strategic Asset 37 Fair Human Management System 48 Infrastructure and Financial Support 59 IT Sharing 70
on the GRI G3.1 guidelines. This report fully satisfies Differentiated Service 38 Employee Welfare and Benefits 49 Promoting Mutual Growth 60 Love Sharing 72
the quality and quantitative requirements of level Stable Telecommunication Service 40 Human Resource Development 50 Building Green Ecosystem 62 Culture Sharing 74
“A” in the GRI G3.1 Application Level Table. As such, IT Security and Customer Protection 41 Labor-Management Cooperation 52 Innovation of Purchasing System 63 Green Sharing 75
kt self declares that the GRI G3.1 Application Level Solving the Side Effects of Informatization 42 Safety and Health 53 Fair Trade 64 Addressing Digital Divide 76
of the 2011 Sustainability Report is at Level “A+”. This Customer Communication 43 Human Rights 54 Supplier Communication 65 Community Communication 77
self-declaration has been verified as being appropriate Employee Communication 55
by Two Tomorrows.
Additional Information
Additional information is available at kt’s homepage
[http://www.kt.com]. If you need more information or
have questions on our sustainability management, please
contact us at the following. Environmental Management System 80 CSR Activities by kt Group Companies 88
Response to Climate Change 81 Independent Assurance Statement 94
Homepage http://www.kt.com Energy Efficiency and Resource Recycling 82 GRI Index (G3.1) 96
E-mail csr@kt.com Realizing Green Office 84 ISO 26000 99
Tel 82-2-730-0354 Environment-Friendly Products and Services 85 Membership Status 100
Fax 82-2-730-0308 Participating in Green Growth Projects 86 Key Performance Indicators 100
Environmental Regulations and Certifications 87 Major Awards in 2010 100
CSR Team, Public Relations Office
100 Sejong-ro, Jongno-gu, Seoul 110-777, Korea Environmental Communication 87
At a Glance 12 Creation of New Growth Engine 24
kt’s Value System 14 Economic Performance 26
Corporate Governance 15 Brand Value 28
Sustainability Management 16 Innovative Management 30
Ethical Management 18 Global Sustainability Management 32
Risk Management 20 Shareholder Communication 33
Partnering for Growth 58 Social Contribution System 68

Infrastructure and Financial Support 59 IT Sharing 70
Promoting Mutual Growth 60 Love Sharing 72
Building Green Ecosystem 62 Culture Sharing 74
Innovation of Purchasing System 63 Green Sharing 75
Fair Trade 64 Addressing Digital Divide 76
Supplier Communication 65 Community Communication 77
Environmental Management System 80 CSR Activities by kt Group Companies 88

Response to Climate Change 81 Independent Assurance Statement 94
Energy Efficiency and Resource Recycling 82 GRI Index (G3.1) 96
Realizing Green Office 84 ISO 26000 99
Environment-Friendly Products and Services 85 Membership Status 100
Participating in Green Growth Projects 86 Key Performance Indicators 100
Environmental Regulations and Certifications 87 Major Awards in 2010 100
Environmental Communication 87
kt has continued to generate values based on coexistence in various areas by achieving mutual growth
with small & medium enterprises, establishing a new labor-management culture, and adopting a “Smart
Working” environment. This is inevitable in order to satisfy everyone, including stakeholders, so as to become a
sustainable corporate. Corporate’s wealth is naturally generated through customer satisfaction by enhancing
the productivity of employees. The benefits from this wealth are distributed amongst all stakeholders.
Based on this business philosophy, kt will double its effort to expand its sustainability management values.
The thing that we all sincerely desire, which is the hope of the future, is to create a world full of happiness.
kt is doing everything possible to enable hope to grow in all areas of the workplace. As part of its on-going
effort, kt allowed the youth to achieve their dreams through a new recruiting policy for customer service job
The thing that we all group, which provides equal opportunities to all without considering educational background. The company
sincerely desire is to will continue to provide a platform for outstanding individuals to work without limits. Efforts will also be taken
to jointly enhance performance. kt will continue to search for concrete ways to achieve mutual growth that
create a world full of enables it to share the fruits of success.
happiness
The most important component in the continuous development of a corporate is customer satisfaction.
kt not only enhances customer satisfaction through products & services and process innovation, it also places its
effort in providing products & services demanded by customers by reflecting the thoughts of customers
into its business. Especially by making various devices ‘smart’ through the utilization of its wired and
wireless network, which is kt’s strength, the company is focused on providing services that can
simultaneously enhance productive activities, learning and leisure anytime and anywhere.
kt will never cease its challenge to achieving its vision as a ‘Global ICT Convergence Leader.’
This goes beyond just simply becoming a leader from an external perspective such as
revenues. Rather, it means establishing itself as a truly global corporate by sincerely fulfilling
its social obligations. By having various stakeholders such as shareholders, customers,
employees, suppliers, and local communities join in this journey to achieve its vision,
kt promises to bring the journey closer to a world overflowing with hope.
With the stipulation of the BOD’s role in the company’s sustainability

management in 2011, kt is able to perceive risks, which appear in
uncertain business environments, in advance, while searching
for new opportunities. Through this, kt will actively pursue the
road to becoming a sustainable company.
Eung-Han Kim
Chairman of the BOD
2
Joseph A. Schumpeter, an economist in early 20th century, stressed that ‘economic development is a process
of creative destruction,’ and the rise and fall of companies depends on whether there have been changes in
the way of thinking. In the past, kt had once experienced stagnant growth for long periods of time due to the
structural changes in the telecommunications industry and fierce competition. To overcome these matters
and search for new growth opportunities, as stressed by Schumpeter, creative destruction and change in the
way of thinking was necessary.
As a result, we started to change. A merger with ktf was successfully achieved in a short-period of time,
something that no one expected, while establishing a new management-labor culture with the adoption of
job competition and annual salaries. kt expanded its Internet phone business and became a leader of change
and innovation through a shift in the way it thinks, as a result of the paradigm shift in the telecommunications kt will take the lead in
market due to the smart phone. Its boldness to push forward also played a crucial role in becoming a leader
expanding its
of change and innovation. In addition, we have become the leading Korean telecommunications company,
providing the most efficient wired/wireless convergence service in the world. Moving a step forward, we were “New Humanitarianism”
able to create a ‘Great Work Place’ that enables our employees to grow hand-in-hand with the company, while
spirit
instilling the dream of mutual growth in partner firms. From the shareholders’ perspective, we moved forward
as a company poised for growth. Being selected as a DJSI World company in 2010, along-side prominent
global companies, was a recognition of kt’s efforts.
In 2011, kt’s business priority is customer service innovation to help maximize customer
satisfaction. To enable customers’ to feel that ‘It was the best choice to become kt’s
customer,’ we will make new changes in all of our processes starting from product
introduction to after sales services. In addition, to actively engage in overcoming
various social issues such as climate change, low birth rate and job creation, we
will expand our smart working and cloud computing services. We will also place
greater emphasis on creating a Great Work Place to pave the way for mutual growth
with small & medium enterprises and success for the general public.
Believing that the various activities benefitting the world will also benefit the company,
kt will take the lead in expanding its “New Humanitarianism (Shin Hongik Ingan)” spirit.
Suk-Chae Lee
Chairman & CEO
3
To be a sustainable company, it is vital to stay on top of all the issues raised or considered
during communications with stakeholders. Stakeholder communication is the best way for
both the company and its stakeholders to prosper together and the most influential factor to
the company’s sustainability. kt runs the Sustainability Management Committee, consisting
of related executive directors, to maintain effective communication with stakeholders and to
reflect key issues in actual operations. The Committee supports the activities of departments
and divisions under its supervision, which are tasked with performing sustainability
management activities.
Framework for Stakeholder Communication

The change in business environment has given rise to new stakeholders while incumbent
stakeholders are exerting greater influence on corporate policy. Our major stakeholders include
customers and investors, which have an economic relationship with the company; employees
and business partners, who are invaluable for driving innovation and growth; and local
communities where we operate. We pursue diverse forms of communication with them
by identifying a representative of each group. Dialogue may take place through a regular
consultation body or through surveys.
Stakeholder Communication Channels
rs Cus
lde to me
ho rs
are
Sh General shareholders’ meeting (annual) Customer pools
CEO conference (annual) (200 persons, and 3 regular surveys and
Earnings conference 4-5 special surveys a year)
(quarterly, disclosures, conference calls) Customers regular online surveys
IR news (1-2 times a month) (10,000 respondents, twice a year)
Domestic/overseas NDR events College student product review
(year-round) (60 persons, 6 months)
IR homepage Household panel
nt
ent and Environme
Meeting between the CEO and the head of

the Korea Communications Commission Joint Labour-Management conference (twice a quarter)
Employees
(3 or 4 times a year) Labour-Management conference at regional level

Meeting with regulatory agencies such as Labour-Management conference at group level
Sustainability Report
the Korea Communications Commission, Labor-Management policy conference (regular, year-round)
Fair Trade Commission, and Ministry of (published annually since 2006) Employees management conferences (regular, year-round)
Knowledge Economy (year-round) kt website (www.kt.com) / kt119 (Grievance resolution center, online and offline)
KTOA members meeting ‘DigiEco,’ the homepage of the kt Research Newsletter/Company news/Intranet debate forum
ernm
(three times a year) Institute of Economics and Management

Gov
Meetings with local Partner firm CEO meeting (annual)

communities (year-round) Partner firm satisfaction survey (biannual)
Love Sharing (twinning with local children’s centers) Partner firm conference (biannual)
IT Sharing (telephone and website) SCM consultative group conference (monthly)
Culture Sharing (survey, SNS, website) Product meeting (year-round)
Technology exchange forum (monthly)
Online and offline mutual prosperity center (year-round)
Website for receiving partner firm suggestions
Communities in various fields
(under preparation) Su
y Forums for IT company CEOs pp
iet (bi-monthly) lier
S oc s
4
Overview
We carried out a materiality test to find key issues and to reflect them in our management. It
has been conducted through five steps: checking stakeholders’ interests and concerns, reviewing
company’s policies, benchmarking of peer companies, media research, and investigating relevant
norms and laws both in Korea and abroad. Among 58 issues derived through these steps, this
report focuses on 21 core issues that are highly material to internal and external stakeholders.
Particularly, our responses to highly challenging issues are shown at the “special issue section.”
Going forward, we will identify issues through stakeholder communication while disclosing
them transparently in our sustainability reports.
Materiality Test Results

Special Issue: Six Major Issues
Mid-term
Shareholders Growth Strategy Suppliers Partnering for Growth
Local Community-Focused
Customers Improving Rate Structure Society Social Contribution
Promoting Environment-
Employees Work & Life Balance Environment Friendly Management
Materiality Matrix
Sustainability management at kt Employees Sustainability management at kt Employees
High
Sustainability management Labor-Management Cooperation Stakeholder Engagement Great Work Place

Fair Human Management System
Ethical Management Safety and Health Corporate Governance Human Resource Development
Risk Management
Shareholders Suppliers
Shareholders Society Creation of New Growth Engine Partnering for Growth
Innovative Management IT Sharing / Love Sharing / Economic Performance Infrastructure and Financial Support
Global Sustainability Management Culture Sharing / Green Sharing Brand Value Society
Shareholder Communication Community Communication Social Contribution System
Customers
Customers Environment CS Management System Environment
Solving the Side Effects of Environment-Friendly Products and Services VOC as Strategic Asset Environmental Management System
Response to Climate Change
External stakeholders
Informatization Participating in Green Growth Projects Differentiated Service Energy Efficiency and Resource Recycling
IT Security and Customer Protection Environmental Communication Stable Telecommunication Service Realizing Green Office
Suppliers Customers Society

Promoting Mutual Growth Customer Communication Addressing Digital Divide
Building Green Ecosystem
Innovation of Purchasing System Employees Environment
Fair Trade Human Rights Environmental Regulations and
Supplier Communication Employee Communication Certifications
Low Internal stakeholders High
5
Special Issue 01
The market leadership shown in smartphones

will be extended into convergence services
Currently the communications market is becoming more and more competitive with players competing
fiercely against each other. At the same time, the number of companies entering the communications domain
is increasing. Communications services have become even more diverse with wired phones, Internet, IPTV and
wireless phones, and are evolving, enabling customers to communicate whenever and wherever. However,
as technologies develop such as the Long Term Evolution (LTE), heavy investments are required, making the
communications industry ever more uncertain. At the same time, as the demands of stakeholders are becoming
greater in relation to climate change, one of the largest current issues, there is a need to pursue green industries
using IT to overcome global warming and energy crisis, and to secure new growth engines.
1 Data explosion, Strengthen Smart

Communications Leadership through the Smart Home
Corporate customer needs
2 Lead the general customer’s

4 Global infotainment & corporate customer’s
ICT *
biz innovation
3 Convergence
3
IT service Convergence Lead the “smart life” convergence through
2 ICT connections with other industries
Media
1 4 Expand global business partnerships &
Communications
Global Global formally expand globally with ICT
competencies
* ICT : Information, Communication, Transaction
General customer needs
Chosun Daily To aggressively take measures to overcome the above crisis, kt’s objective is to leap
forward as a ‘Global ICT Convergence Leader’ through a continuous growth strategy
KT’s CEO, Suk-Chae Lee announced that
KT will achieve KRW30 trillion in revenues
taking into consideration market trends, evolving customer needs and global energy
by 2015. To achieve this, he pointed out issues. The leadership shown in smartphones will extend to emerging devices,
two core business, the ‘Smart Home while overcoming the stagnation of the wired market through the smart home
Strategy,’ and the ‘Expansion of Cloud strategy. In addition, kt will concentrate on fostering the Global/ICT/Convergence
Computing Services.’ In addition, KT
sector and use it to lead growth. The company will secure market competitiveness
plans to introduce 7~8 tablet PC models
this year and sell over one million units.
by expanding its corporate customer-base. Video conferencing, smart working and
As for smartphones, KT plans to roll out Energy Management System (EMS) will be internalized across the company, while the
25 ~ 30 models and secure 6.5 million green industry, including new and renewable energies, will be used as a new growth
subscribers. engine, creating a firm platform for sustainable growth.
(January 21, 2011)
6
Special Issue 02
Doing everything possible to foster a rational communications
consumption culture & protect consumer rights
As communications services have diversified with wired phones, Internet, IPTV & wireless phones, customers
are able to conveniently communicate anytime & anywhere. However, communications expenses are taking up
a larger portion of the household budget. With the increase in smartphone distribution, wireless data usage by
customers has also increased. At the same time, issues are being raised related to communications expenses
which include home phone flat sum rates and the non-refunded payments.
Inquiry & application for payment of non-refunded

Diversify refundable routes
payments through olleh.com (www.olleh.com)
Automatic inquiry of non-refunded details Provide pop-up services for non-refunded detail status when
when subscribing to a service inquiring on the citizen’s registration number
Initiate real-time account services

Non-refunding Prevent excessive duplicate payments by Establish a real-time payment system at convenience stores &
policy shortening the payment period credit card payments
improvement
method Minimize customer inconveniences by Register a refund account when paying through a Giro or credit card
expediently processing refunds Initiate automatic next day refund for erroneous payments
Automatic sending of next month refund notice after termination of service to advertise non-refunded amounts
kt is searching for diverse ways to enable customers to make rational communications

consumptions. Customers can dial 100 or visit www.olleh.com to confirm the
Seoul Economic Daily user’s communications status and to find the most economical way of using
communications services. In 2010, kt enabled the user to make adjustments
KT introduced a smartphone rate plan according to the actual usage pattern of voice-text-data. A customized rate policy
that allows the user to freely adjust the
was introduced where unused wireless data could be carried over to the following
user amount for voice, data and text
messages. With 5 different rate policies, month for use. In addition, by introducing diverse combined rate policies such
users can control the use of voice, data and as reducing data roaming rates and paying per MMS, kt is trying to lessen the
text message within a limit established by communications expense burden on the customer. As for the home phone flat sum
each policy. The customized adjustable rate which has become a communications expense issue, subscribers are notified of
rate plan was a huge welcome for those
their subscription and are provided information to compare rates. If the customer
on the iRate Plan that did not use wireless
Internet that much. desires to terminate the service, every measure is taken to ensure that the consumer
(August 2, 2010) rights are protected through notification. For customers who have not received
refunds, services are provided so that the customer can confirm by visiting www.
olleh.com. kt will continue to foster a rational communications consumption culture
and do everything possible to protect consumer rights.
7
Special Issue 03
By promoting Smart Working,

kt is creating a Great Work Place
Survey results of the effects of smart working (%)

• Source: Employee survey initiated in March 2011
• Base: 100% comparison with working at the office
Average 115.7 Average 115.2 Average 79.8
122.5 123.8
115.6 114.2
112.6 112.9
89.8
80.3 75.8
1times 2~3times Over 4 times 1times 2~3times Over 4 times 1times 2~3times Over 4 times
Concentration level Productivity Stress
As women are becoming more economically active, the importance of family-friendly management is gaining
in importance. Although having women enter the work force plays a positive role on the economy, the
rigid work methods of domestic corporations are causing social issues. Having the world’s lowest birthrate,
many are continuously pointing out that this could place a great burden on future generations. There is a need
to enhance the quality of life by balancing work & life.
Hankuk Economic Daily By creating a Great Work Place that aims to establish the best work place for
KT announced that it will formally competent employees, kt is pursuing a balance in work & life, and is doing everything
initiate Smart working starting this possible to allow employees have a happy life. To help mitigate low birthrate
month for its 20,000 employees. Smart problems, which has become a social issue, kt is providing diverse family-friendly
working was actually initiated as a trial programs such as the children’s nursery in the workplace and maternity leave. kt has
service in June of last year for pregnant
initiated a Smart Work policy to innovate the way one works and to help balance
employees and employees on maternity
leave. Based on analysis, smart working work & life. Mostly pregnant employees and employees with 13 or younger children
not only enhanced concentration and utilize the smart working policy the most. They can either work at home or at
productivity, it also created a balance smart working centers nearby. Smart Working is also being implemented for male
between family, society and company. employees. To enable them to work in offices close to home, smart working centers
Because of the positive results, KT
are open. From research, Smart Working not only enhances employee satisfaction,
decided to expand the implementation
of smart working. it also enhances productivity.
(April 3, 2011)
8
Through the ‘3 Don’t Policy,’ mutual growth,
Special Issue 04
a new paradigm, will be implemented
We will not
3 Don’t We will not waste
misappropriate
SME’s ideas of
Policy SME’s resources
technology
development
Expanding Sustainability Management
Based on the Executing Managing

supply chain guidelines violations of
We will not create standards
Environment and Internal audit
an environment labor management External audit Violation processing
of competing with standard policy & regulations,
SMEs
violation criteria &
treatment procedures,
organized learning,
etc.
A company’s competitiveness is decided on its supply chain. Since companies cannot internalize all the required
competencies, trustworthy relations with outstanding suppliers is becoming more important to sustainability
management. Since the perception that small & medium suppliers that contributed to the growth of large
corporations are not appropriately compensated is spreading, there is a need to adopt a policy for mutual growth
on a government level and for large corporations to voluntarily pursue mutual growth.
Kyunghyang Daily kt has continuously placed its effort on coexistence through diverse measures
which include preventing abuse stemming from bids, expanding payment for
In July 12, 2010, Suk-Chae Lee, Chairman
maintenance & repairs, strengthening self-support platforms for competitive SMEs,
of KT announced its ‘3 Don’t policy” and
mentioned that moving toward mutual and initiating cash settlements & expanding financial support. By declaring the
growth rather than just coexistence with ‘3 Don’t Policy” in July 2010, kt has taken a step forward from the existing coexistent
SMEs is eventually creating a platform policy. Not only is kt executing its mutual growth policy towards its suppliers, it is
for maximizing customer value. He
also inducing the suppliers to disseminate sustainability management policies
went on to say that KT would achieve
towards other suppliers. To achieve this, kt is inducing 1st suppliers towards a cash
meaningful growth with SMEs through
a sustainable open policy. The Chairman settlement structure with the 2nd suppliers. At the same time, kt is managing
also announced that the coexistent transactions between 1st and 2nd suppliers to ensure that any price increases by
cooperation with SMEs will be expanded the 1st supplier on goods delivered to kt is also disseminated down to the 2nd
through the ‘3 Don’t Policy.’
supplier. Also, starting in October 2010, diverse mutual growth programs are being
(July 12, 2010)
applied to the 2nd suppliers.
9
Rather than a one-time activity, kt is
pursuing long-term social contribution
Special Issue 05
activities by linking with the local society Gangneung
Namyangju
Wonju
Bucheon Joongrang
olleh Dream Center Status
Completed Centers: 2010 (Joongrang, Seongnam, Daejeon, Wonju, Chilgok, Mokpo, Jeju) Yangcheon Seongnam
2011 (Namyangju, Busan, Gwangju, Bucheon)
Planned Openings: 2nd Half 2011

(Cheonan, Gangneung, Yangcheon, Gunsan, Andong, Cheongju)
Cheonan
Cheongju
Daejeon Andong
Gunsan Chilgok
As the awareness of social responsibilities is increasing,

companies are initiating diverse social activities.
However, rather than one-time activities, there is a
Gwangju
need to systematically initiate social contribution
activities from a long-term perspective that connects Busan
with local societies. When government or large Mokpo
customers place a project order, there are some that
require social responsibility performance results. This
phenomenon is steadily increasing.
Jeju
Choong-Ang Daily
The olleh Dream Center is as its name
suggests a place where children can Starting in 2010, to enable children from low income families realize their dreams
embrace their dreams. It is a social and hopes, kt connected with local children’s centers located in major regions of the
contribution model using the company’s country to provide children with access to ‘olleh Dream Centers.’ Space equipped
assets. By reallocating space in KT with diverse IT devices including IPTVs, beam projectors, smart pads, and eBooks,
buildings across the county, space was have been made available in branch buildings across the country for various classes
made available for the Dream Center such as English, music, etc. As of the end of 2010, there are 7 centers located in major
children. Currently there are 10 Dream sectors of the country. In the second half of 2011, new Dream Centers will be opened
Centers some of which are located in in the Namyangju, Busan, Gwangju areas. In order for local employee volunteer
Seongnam, Chilgok, Mokpo, Wonju groups to systematically support the local children’s centers, forming relations with
and Daejeon. By the end of this year 10 these children centers is encouraged. By the end of the 1st half of 2011, relations with
more Dream Centers will be added to 600 children’s centers will have been formed, and by the end of the 2001, the total
cities such as Bucheon, Cheonan and number will have been expanded to 1,000 children centers.
Gangneung.
(June 23, 2011)
10
Solar Power Generation
• In 2008, utilizing the rooftop of the Leading global environment preservation by
Shinae Branch building and property at
Hwaseong Transmission Station, a 50Kw enhancing energy efficiencies, and developing
solar power generation equipment was
eco-friendly products & services
Special Issue 06
installed for each location.
• In December 2010, a 423Kw large
capacity solar power generator equipment
was installed at the Gangneung Promoting
Receiving Station.
utilization of
new & renewable
energy
Fuel Cell
• As part of the Ministry of Smart Grid
Knowledge Economy’s new and Jeju Test Project
renewable energy trial distribution • For 42 months between May 2009 and
project, kt installed five 1Kw fuel cells Geo-thermal Energy May 2013, the Smart Grid project was
on the rooftop of its Songdo building. • Heating/cooling and hot/cold water implemented in Goojwa-eub, Jeju Island to
supply was installed at the Daeduk cover approximately 6,000 households.
Research Complex and Gongju Branch
as a trial.
• Dust, vibration and noise that can
occur while using geo-thermal energy
from 100~150 meters underground
has been solved by an eco-friendly
green technology developed by kt.
The effects from global warming are spreading. In terms of adapting to climate change and energy independence,
Korea was ranked very low amongst OECD nations. Although ICT companies do not directly emit greenhouse
gases, they use a lot of energy, in effect, indirectly contributing to greenhouse gas emissions. Since ICT companies
can provide services such as energy solutions and remote monitoring, they can also contribute to the reduction of
carbon dioxide, which provides both opportunities and threats. As such, it is important for companies to commit
to increasing the portion of new and renewable energy supplies from a corporate level, and to help reduce energy
consumption and enhance energy efficiencies.
Kookmin Daily To help reduce carbon dioxide, kt is improving energy efficiencies within the
workplace, developing eco-friendly products and services, and expanding the use
As part of KT’s Green Management,
of new and renewable energy. kt is trying to enhance energy efficiencies at work
KT opened a smart grid operating
through video conferencing and smart working. By developing services such as the
center in Jeju Islands’ Smart Grid Test
Energy Management System (EMS) to efficiently manage energy within buildings and
Complex last April. KT also finalized
Green PCs, kt is providing support so that customers can create a highly efficient IT
its low carbon green growth plans by
environment. Moving a step forward, to expand the use of new and renewable energies,
converging electric power with IT. The
solar power generators were installed on the rooftop of the Shinnae Branch and on
Smart Grid, which is a smart power
the premises of the Hwaseong transmission station and Gangneung receiving station.
network, applies IT technology to
Using geo-thermal energy, cooling, heating and hot/cold water are being supplied at
existing power production & transport
the Daeduk Research Complex and Gongju Branch. In addition, kt is participating in
and consumption processes, helping
the smart grid Jeju Test Project to help expand green technologies.
optimize energy efficiencies. The Smart
Grid is a next generation intellectual
power network system that creates
value for both supplier and consumer.
(June 29, 2010)
11
Sustainability at kt
At a Glance
kt’s Value System
Corporate Governance
Sustainability Management
Ethical Management
Risk Management
Corporate Overview
Standing at the forefront of the digital era, kt has been spearheading advances in information
technology in Korea since its inception in 1981. We are moving towards a vision of becoming a
Global ICT* leader equipped with wired/wireless convergence technologies attained after the
merger with ktf. Based on our digital communication devices that can be connected anywhere
and anytime, we provide advanced wired/wireless services to customers and promote our
corporate philosophy of “partnership for growth” by pursuing green growth and contributing to
job creation. kt will continue to provide families, individuals and companies with advanced IT
services, including voice & data, wired & wireless networks, and broadcasting & telecommunications
services, in order to grow as a sustainable enterprise that fulfills environmental, social and
economic responsibilities.
* ICT: Information, Communication, Transaction
kt Profile Affiliates
Company Company name Main business Ownership (%) Book value (KRW million)
kt
name
kth Internet/contents business 65.94 119,129
Date of
December 10, 1981
establishment ktp Trunked Radio Service(TRS) 44.85 43,515
CEO Suk-Chae Lee Special category telecommunications/

ktn 100.00 51,210
NI business
90 Buljeong-ro,
Location of Bundang-gu, Construction and maintenance of
ktsm 36.92 25,497
head office Seongnam-city, submarine cable
Gyeonggi-do Security services
ktt 88.82 30,374
No. of 31,155 persons (security systems, facilities, etc.)
employees (as of the end of 2010)
ktm&s Sales of terminals 100.00 21,095
KRW24.1 trillion
Total assets Lease/installment financing,
(as of the end of 2010) kt Capital 73.74 147,438
investment banking
Operating KRW20.2 trillion
revenue (as of the end of 2010) IT solution rental
ktr 58.00 165,724
(equipment/auto lease, etc.)
Korean, New York
Stock listing and London stock ktds SM/SI 95.31 27,810
exchanges
Moody’s A3 kt Music Sound source distribution 48.69 16,008
(Mar. 4, 2009),
Credit rating S&P A (Nov. 26, 2010) Nasmedia Display advertisement 50.00 22,504
Fitch Ratings A
(Jul. 15, 2010) ktcs Call center operation and establishment 17.80 19,613
ktis Call center operation and establishment 17.80 19,432
kt Skylife Satellite broadcasting, media 32.12 29,089
Sales of high-speed wireless

kt Wibro Infra 26.22 65,502
telecommunication devices and equipment
Note) Includes only affiliates with book value of minimum KRW10 billion. (as of the end of 2010)
12
Market Share
Major Businesses (based on no. of subscribers) (Unit: %)
At the end of 2009, kt was the first in Korea to introduce iPhone (Apple), successfully changing the
Local call Broadband Internet
market landscape with a data-oriented smartphone. At the same time, by successfully introducing Mobile phone
diverse smartphone terminals in 2010 such as iPhone4 (Apple), Nexus-One (HTC), Optimus-One
(LGE), Desire HD (HTC) and Streak (DELL), kt was able to further its competitiveness. In addition, to 89.8 89.9
86.3
maintain existing wired service subscribers and simultaneously strengthen its business platform,
kt introduced various integrated rate policies such as the ‘ollehtoong,’ Unlimited Family and the
Family Sponsor rates. At the same time, the company aggressively marketed its ‘olleh tv skylife’ 43.4 42.5 43.1
product by linking up with Korea Digital Satellite Broadcasting’s (Affiliate of kt) satellite channel 31.5 31.3 31.6
broadcasting services to lead the communications & broadcasting convergence market. This
further strengthened the company’s competitiveness in the media sector.
2008 2009 2010

No. of Subscribers (Unit: 1,000 persons)
Category 2008 2009 2010
Local call 22,132 20,090 19,273
Broadband Internet 15,475 16,349 17,224
Mobile phone 45,607 47,944 50,767
Global Network
kt Moscow Office
Moscow
East Telecom
Tashkent Omnitel China
Mongolia Telecom Beijing
Ulaanbaatar
Super iMAX
ktai
Tashkent
LA
kt Tashkent Office ktj
Tashkent Tokyo
ktc
kt Algiers Office Beijing
Algiers kt Hong Kong Office
kt Dhaka Office Hong Kong
Dhaka
Freekoms kt Hanoi Office
Jakarta Hanoi
kt Kigali Office
Kigali kt Bogota Office
kt Jakarta Office Bogota
Jakarta
Overseas Subsidiaries Overseas Office

• China - kt China Corp. Omnitel China • Russia (Moscow Office)
• Japan - kt Japan Co., Ltd. • Vietnam (Hanoi Office)
• USA - kt America Inc. • Columbia (Bogota Office)
• Mongol - Mongolian Telecom • China (Hong Kong Office)
• Uzbekistan - East Telecom, Super-iMax • Bangladesh (Dacca Office)
• Indonesia - Freekoms • Rwanda (Kigali Office)
• Algeria (Algiers Office)
• Indonesia (Jakarta Office)
• Uzbekistan (Tashkent Office)
Overseas Subsidiary Overseas Independent Company Overseas Representative Office Overseas Temporary Office
13
At a Glance
kt’s Value System
Ethical Management
Risk Management
kt has implemented its olleh management, reflecting its commitment to thinking outside
the box and drawing on the synergies produced by the merger with ktf to enhance customer
value. This is the operational direction kt needs to follow to transform itself into a global ICT
convergence leader. The program requires the company. The program requires the company
to grow through mutual benefit to customers and all other stakeholders through future-
oriented, innovative thinking. By thinking innovatively, we intend to provide future-oriented
services that are welcomed by shareholders, the nation, employees, society, customers and
other stakeholders.
kt Value Pyramid
Management philosophy Always * * Always Connected
cted Updated interpretation of our former management

C nne
o philosophy of “convergence of information,
telecommunications and people”
Management direction
ment
anage
olleh M
** ACTION
A
ll for Customer, Collaboration, Trust, Innovation,
Vision Ownership, Now
l ICT
Globa ce Leader
rge n
Aim of “olleh” Management Core value Conve
Management t Way
of reverse
kt is a company that
.** = New k
reverses customer’s ideas .O.N
ideas A.C.T.I
Future kt is a company that
management realizes customers’ dreams
Management Philosophy and Direction
Communication kt is a company that reads olleh management represents kt’s new management direction under which we aim to make
management the heart of customers
customers happy by creating new customer value through continued innovation by changing
Customer
kt is a company welcomed the way we think and pursuing constant communication. By thinking outside the box, we intend
satisfaction
by customers to provide innovative services of the future. Our goal is to become a company that rethinks ideas
management
(management of reverse ideas), realizes customers’ dreams (future management), reads the
olleh Management Direction heart of customers (communication management), and is welcomed by customers (customer
Shareholders satisfaction management).
Outstanding Company maximizing
Performance corporate value
Core Value - A.C.T.I.O.N.=New kt Way
Country
Under the belief that action-oriented change is imperative to driving growth, kt adopted the
Company leading the
Leading IT
IT Industry “New kt Way” which represents six principles for ACTION: All for customer, Collaboration, Trust,
Innovation, Ownership and Now. The ‘New kt Way’ will serve as the underlying principle for all
Employees
business activities carried out by kt.
Liberal Company creating free
Culture communication culture
Society
Esteemed Company respected

Company by the society All for Customer Collaboration Trust Innovation Ownership Now
Customers
Happy Company making

Process Organizational Support
Customer customers happy system
Speedy and Goal-oriented and Professionalism and
14 action-oriented changes accountability management productivity

Since its privatization in 2002, kt has been committed to ensuring corporate transparency,
adopting almost all of the recommended global standards for corporate governance. We
have professional managers and an independent Board of Directors (BOD). The role of
the BOD and CEO are separate and clearly stated. We have also adopted the “kt Corporate
Governance Charter” and established the Corporate Governance Committee in order to
improve our corporate structure. These efforts were externally recognized through the
“Grand Prize” at the 2010 Corporate Governance Awards by the Corporate Governance
Service of Korea. We have also been listed in the CGS Hall of Fame (2007 and 2008).
BOD Composition and Operation BOD Activities

The Board of Directors (BOD) is comprised of 11 members (three executive directors and eight
Category 2008 2009 2010
outside directors, as of March 2011). Outside directors, equipped with expertise in certain areas
No. of BOD
and with management skills, serve three years or less. They are appointed by the Outside Director 17 14 10
meetings
Recommendation Committee. The BOD chair serves a one-year term and is chosen from among Rate of
96% 93% 93%
the independent directors. We have five permanent committees under the BOD. In addition, two participation
Evaluation
provisional committees are under operation. When necessary, special committees are established by
results 4.61 4.41 4.38
the resolution of the BOD. To effectively operate the BOD and enhance the responsibilities of directors, (scale of five)
kt has evaluated its performances and directors’ performances annually. Resolutions are passed when Note) In 2010, the BOD deliberated on and approved 46
agenda items including the plans for establishment of
the majority of the board members are present and the majority of those attending the meeting give Hot-line, mid-term strategies for 2015, and business
plan for 2011.
their approval.
Committees under the BOD

Compensation for Directors
(Including outside directors as of
Committees Composition Roles and responsibilities
the end of Dec. 2010) (Unit: KRW 100 million)
Corporate Governance 4 outside directors Deals with issues related to
Committee 1 executive director corporate governance Amount
approved at
Performs audits on accounting and Total Individual
Audit Committee 4 outside directors Category the general
company operations amount average
shareholders
Evaluation and Oversees matters related meeting
4 outside directors
Permanent Remuneration Committee to the CEO’s contract and evaluation Executive
Committee directors 45.4 15.1
3 executive Deliberates on general management issues
Management Committee (3)
directors mandated by the BOD
65
Deliberates on major internal transactions and Outside
Related Transactions transactions with related parties, which are directors 4.8 0.6
4 outside directors (8)
Committee prescribed in the Monopoly Committee Regulation
and Fair Trade Act and the Commercial Act
Note1) Compensation paid in 2010 was excluded
CEO Recommendation All outside directors Nominates CEO candidates, deliberates on and since it was recorded in financial statements of fiscal
year 2009.
Provisional Committee 1 executive director approves necessary matters
Committee Note2) Detailed information on the BOD is available
Outside Director Candidate All outside directors Nominates outside director candidates, on the kt homepage (www.kt.com; IR > BOD)
Recommendation Committee 1 executive director deliberates on and approves necessary matters
Responsibility Management by Professionals and

Compensation System
The CEO signs a management contract with the BOD to ensure responsibility. The CEO’s
performance bonus is linked to kt’s overall performance, which is assessed by the Evaluation and
Remuneration Committee’s quantitative and qualitative analysis of various indicators, including
non-financial performance. Equally, the performance bonus for executive directors is based on
the same corporate performance evaluation and the respective business units.
15
At a Glance
kt’s Value System
Ethical Management
Risk Management
kt built an organizational structure that allows it to implement corporate sustainability

kt demonstrated its commitment to CSR management goals more systematically and effectively, while it continues to seek ways
to the international community in May
to grow along with its stakeholders. We have raised the value of society through diverse
2008 by joining the UN Global Compact.
achievements in the areas of ethical management, customer management, environmental
management, win-win management, economic growth, and employee satisfaction while
enhancing customer value by providing advanced IT services. Going forward, we will create
growth engines by stepping up sustainability management and transparent management
that meet global standards.
Sustainability Management Direction

The goal of kt’s drive for sustainability management is to continue to advance as a major world
player. To this end, we maintain effective communication with customers and other stakeholders.
Moreover, five sustainability priorities (ethical management, customer management,
environmental management, win-win management, and social contribution) have been
established to enable us to effectively incorporate major issues to our business activities.
Sustainability Management Direction
Five priorities Initiative Roles and responsibilities
Ethical Gain recognition as Ethical management activities,

management a clean organization corporate governance, risk management
Respect customer value, promote Service development, product liability, information

Customer
customer satisfaction, increase customer protection, CRM, innovative management (product,
management
benefits and provide distinctive services social innovation), brand management
Environmental policy, environment management

Environmental
Realize “Green kt, Green Korea” system, climate change response strategy, innovative
management
management and efficiency, energy saving
Fair HR management (HRD, hiring and fostering),

Win-win Foster a productive corporate ecosystem
recruiting, labor union (labor practices indicators,
management to create value with our partners
occupational health & safety), fair trade
Social contribution activities, public services
Narrow the digital divide and
Social contribution (addressing digital divide), social cooperation
enhance quality of life
(regional investment, cooperation)
Sustainability Management Leadership

The Sustainability Management Committee, chaired by a vice president is under obligation
to implement sustainability management more effectively. We were obligated to provide
regular sustainability management performance reports and plans to the Board of Directors
in 2011. Composed of the heads of 16 offices and divisions, the committee handles company-
wide sustainability management and, through the olleh initiative, supports the operation of
subcommittees. It also discusses annual plans for sustainability management and evaluates
results. The Sustainability Management Working Committee, composed of executives and chaired
by the head of the Public Relations Office, manages and supervises the activities of each division,
and ensures compliance to global standards.
16
Sustainability Management Committee
Implementation Structure Decision-making System
Board of Directors Corporate

Five priorities Major issues Relevant organizations Stakeholders Governance
Committee
Ethical management activities,
Ethical Ethical Management Office,
corporate governance, transparent Shareholders CEO olleh Management
management Value Management Office
management, growth & innovation Committee
CS Implementation Division, Sustainability

Service innovation, prevention of Management
Personal Customer Division, Home
Customer communication disruption, customer Committee Secretariat
Customer Strategy Division, Synergy Customers
management protection, VOC management, (Public Relations
Management Office, DigiEco,
product impact analysis Sustainability Dept.)
Technology Strategy Office
Management
Working Committee
Green IT, energy saving, response Smart Green Development Office,
Environmental Environment
to climate change, development of Network Strategy Division, Real
management (Future generations)
eco-friendly BM Assets Management Office
HR Management Office, Business

Win-win HR management, compensation, fair Employees and
Support Office, GMC Strategy Office,
management trade, mutual growth suppliers
Purchasing Strategy Office
Volunteer activities, public service,

Social Local communities
addressing digital divide, social Public Relations Office
contribution (Government)
cooperation
Sustainability Management Performances

Sustainability Management Recognition
Award Sponsor organization Award date
Presidential Award in the category of Small & Medium Business Administration

May 14, 2010
SME support Federation of Small and Medium Business
Grand Prize at the

Korea Corporate Governance Service (KCGS) Jun. 30, 2010
2010 Corporate Governance Awards
Audit Award Korea Listed Company Association Sep. 29, 2010
No. 1 in four categories*

KMAC Mar. 31, 2010
by Korea Customer Satisfaction Index (KCSI)
Carbon Management 2010
CDP Korea Oct. 21, 2010
(Leader in telecommunications industry)
Labor-Management Culture Grand Prize
Ministry of Employment and Labor Nov. 2, 2010
(Presidential Award)
Family-Friendly Company Ministry of Gender Equality & Family Nov. 20, 2010
* International call, city local call / long distance call, broadband Internet, Internet call
kt Listed on DJSI World

kt was included in the Dow Jones Sustainability Korea Index and the DJSI Asia Pacific in 2009, and
on the Dow Jones Sustainability World Index in September 2010. The DJSI World comprises of
318 companies, which were selected by Dow Jones and SAM. The DJSI assesses more than 2,500
companies on their level of sustainability management. DJSI World members are recommended
as preferred investment targets for socially responsible investment funds.
17
At a Glance
kt’s Value System
Ethical Management
Risk Management
kt has made ethics a part of its corporate culture, and is continuously implementing its Clean
kt project to establish itself as an honest and transparent corporation. The company has taken
every effort to enable employees to naturally come into contact with ethical management
through ethical management practice programs. Through education and informal meetings,
ethical management is being spread company-wide and group-wide. In October 2010, an
ethical management help-line was set-up to help employees correctly present solutions to
ethical dilemmas faced on a daily basis during work. As a result, the 2010 kt ethical level
evaluation carried out on employees, senior management and partnership companies
showed that kt’s employees received 91 points for their ethical practices, which was an
increase of 19% from the previous year. As for its suppliers, 97% replied that they had never
experienced providing money or entertainment when transacting with kt. These figures are
an overall improvement in ethical standards.
Results of Follow-up Measures Clean kt

to Non-compliances
Hotline to Audit Committee Chair
Category 2009 2010 Employees can use e-mail or voice-mail to report irregularities by executives directly to the Audit
Dismissed 16 11 Committee Chair.
Disciplined 148 80
“Clean kt” campaign for holidays
It is designed to promote an ethical culture across the company and prevent corruption and
irregularity in advance.
Self-assessment and ethics pledge

Everyone at kt has conducted an ethics self-assessment and signed a pledge of ethics online.
Ethics monitoring activities

Monitoring activities are carried out to expose unethical conduct.
Clean 365 Center

The Clean 365 Center is under operation to protect employees and preserve corporate integrity.
Ethics training by heads of business units (executives)

Heads of business units learn ethical management and then give lectures to their subordinates to
raise employee awareness of ethical issues and promote their ethical conduct.
Reinforced communication channels (Cyber Reporting Center)

Cyber Reporting Center was improved and became more vitalized.
Reviewing progress in ethical management

Reviews are conducted to gauge how employees, business partners and customers perceive
ethical management at kt. Findings from the reviews are used to make necessary improvements.
They are also used as reference when determining the future direction of ethical management.
Ethical management help-line

It has been set up to help employees deal with ethical dilemmas they face on a daily basis.
18
Unethical Behavior Reporting Channel Reporting Channel
kt operates a Cyber Sinmungo (Open Hot-line), which is a channel for reporting unethical
Cyber Reporting Center
behaviors. For reporting unethical monetary transactions by employees, and irregular behaviors (www.kt.com; About kt
Ethical Management
that result in irregular increases in profits or decrease in losses, the informant is entitled to receive
Cyber Reporting Center)
KRW50 million as compensation. To protect the identity of the informant, steps are taken not to e-mail: ethics@kt.com
Counseling Center (080-713-6262)
expose the identity of the informant during compensation payment. The informant can decide
the method of payment for identity protection.
Ethical Management Training 2010 Ethical Management Training

Since April 2010, heads of business units, including executives, have held monthly training
Subject Date
sessions to raise employee awareness of ethical issues and promote their ethical conduct. The Ethical Management
unit chiefs (over 500 in total) at the kt Head Office and worksites are familiarized in advance with Meaning & Introduction to
April
kt’s Ethical Management
the training materials, prepared by the Ethical Management Office, and then give lectures to their Infrastructure
subordinates. This way, the unit chiefs serve as a model and help to instill an ethical mindset in their Importance of Practicing
June
Ethical Management
people. The materials contain various case studies that make the training content more realistic, Ethical Awareness &
July
encouraging greater participation by all employees and maximizing the training effectiveness. In Judgment
Importance of Small
2010, ethical management training was implemented eight times. August
Actions
Chuseok Holiday Gifts &
September
Bribes
Ethical Management Slogan Proclamation Improper Acquisition of
October
In January 2011, kt announced its ethical management slogan, “JUMP,” with justice, uprightness, Shares
Eliminating the Attitude of
morality and pureness as its underlying spirit. The slogan was created to help employees Ignoring Small & Medium November
internalize ethical values and naturally practice ethical management at work. By proclaiming Partnership Companies
the ethical management slogan to establish a global standard ethical management culture, kt’s 2010 Review of Core
Details of Division Head’s December
intention is not just to take appropriate measures for past irregularities and corruption, but to also Ethical Actions
establish a foundation where ethical management can actively be practiced.
Ethical Management Slogan
Justice • Uprightness • Morality • Pureness
“Leaping forward to Meet Global Standards, kt is Escaping from

Past Habitual Work Processes and Methods of Thinking”
Justice Uprightness Morality Pureness

19
At a Glance
kt’s Value System
Ethical Management
Risk Management
Market saturation, fierce competition and growing uncertainties in the market have
heightened the risk of doing business. kt has set up a company-wide risk management
system that allows it to respond to financial, strategic, operational, and compliance risks.
These efforts will help us prevent risks, maintain close ties with stakeholders, and pave the
way toward sustainable growth in an uncertain environment.
Risk Management System

Risk Management Organization Chart Risk Management Scope and Principles
Company-wide
Risk Management
Chief Risk Officer
(Head of the Ethical
Management Office)
Compliance
Risk
Ethical Management
Dept.
(Risk Management
Center) Strategic Operational R Rapid & Resolute - Employ rapid and resolute follow-up
Respond to measures
Risk Risk i Integrity & Initiative - Disclose transparently and
and minimize respond proactively
uncertainties that
Risk Management s Specific & Supportive - Set clear directions and support
by Each Business Unit negatively affect
corporate value k Knowledge Accumulative - Build risk management
Risk Supervisor know-how to reduce risks
Division
Financial Event
Risk Risk
Risk Owner Risk Owner Risk Owner Risk Owner
Head of Head of Head of Head of
Relevant Relevant Relevant Relevant
Business Business Business Business
Unit Unit Unit Unit
Company-wide ERM System
kt integrated division-based risk management activities into the company-wide Enterprise Risk
Management (ERM) system in 2004. In 2010, we established the Risk Management Center under
the Ethical Management Office as an organization dealing exclusively with ERM. The Center
supervises all activities relating to risk management, sets risk management plans, examines risks
related to new services, and runs the Risk Management Committee. All organizations in the
company are now using the “Enterprise Risk Response Handbook” to respond to actual problems
strategically and practically as well as to conduct risk-prevention activities.
Risk Management Process

Management on Key Risks
We have reinforced our preventive activities by identifying key risk factors related to our operations
and then established strategies for managing risks. Operational and strategic risks are pooled and
evaluated to identify the greatest threats. The casual relations of these risks are analyzed to come
up with a set of “key risk indicators,” which are used in monitoring risks and improving weak areas,
thereby minimizing the chance of reoccurrence.
20
Crisis Response
A company-wide crisis response system is in place, allowing the Risk Management Center to
initiate appropriate action in case any risk becomes an actual problem. In such cases, the Center
induces swift action to prevent escalation and minimize the actual damage. In addition, to make
sure the crisis does not reoccur after having solved the issue, measures are being taken to prevent
the reoccurrence and to improve the root cause.
Risk Examination Related to New Services

Provision of perfect service that meets customers’ expectation is vital to customer satisfaction.
kt introduced the “Risk Examination System for New Services” in August 2010. Under the system,
in-depth examination is carried out in the four scopes – customers, privacy protection, legal
stipulation, and fair competition. A total of 417 service-related risks were examined to offer
differentiated value to our customers.
Raising Risk Awareness

Successful risk management requires a scientific and efficient risk management system while
employees’ awareness of risks is equally critical to responding risks. We have adopted an in-house
risk evaluation framework to assess risk factors and “risk owners” and categorize risks according to
potential impact and possibility of occurrence. In the process, we have improved our capability to
respond to crises and prevent risks from turning into real problems. Our employees are more aware
of the need to consider risk factors when carrying out their assigned duties. Our risk evaluation
in 2010 identified a total of 227 risk factors. They have been prioritized, response strategies have
been formulated, and risk prevention measures are now being implemented.
Preventive Management Process of Core Risks

Assess Establish risk Analyze the Decide response
current situation management indicators development of risk strategy
• Pool risks • Prioritize value worth • Examine causal • Form dedicated

• Evaluate key risk protecting relationships based response team
candidates • Set key risk indicators on KRI • Conduct improvement
(KRI) • Identify key causes measures
of risk
Risk Response Process
Recognize problem Evaluate problem Respond to problem Feedback
• Receive internal or • Determine whether it • Determine response • Report response

external reports of the affects whole company, direction results
problem and designate lead • Determine role & • Analyze the case to
• Have RMC identify responder (based on responsibility of prevent recurrence
potential effect &
the problem relevant units and feedback
possibility of spread)
21
Vision and Strategic Direction
Through convergence-based innovation, in order for kt to leap forward as a global IT leader, kt is
reorganizing its portfolio focused on sustainable growth businesses. kt is leading management
innovations and is pursuing a search for new business opportunities and products through its creative
management program. To grow into a leading global company, it is strengthening partnerships with
Chinese and Japanese companies.
Material Test Results

External (0~100%)
100 A A Creation of New Growth Engine

B
B Economic Performance
80 C
Ⓔ Ⓓ C Brand Value
60 Ⓕ Ⓓ Innovative Management
Ⓔ Global Sustainability Management

40
Ⓕ Shareholder Communication
20
20 40 60 80 100
Internal (0~100%)
Major Performance
Category 2008 2009 2010
Total Assets (KRW 100 million) 186,849 234,424 241,010

Economic
Revenue (KRW 100 million) 117,848 159,062 202,335
Performance
Net Income (KRW 100 million) 4,498 5,165 11,719
No. of Patents (Registration) 772 583 710

Innovation
Capital Expenditure (KRW 100 million) 31,503 29,587 30,572
Global IT Business Amount of Orders Receviced (KRW million) 74,799 75,996 107,762
Awards and Recognition in 2010
• Embedded mobile best prize (Mobile World Congress)

• Grand Prize at the 2010 Corporate Governance Awards (Korea Corporate Governance Service)
• Inclusion in DJSI World Index (Dow Jones / SAM)
• Audit Award (Korea Listed Company Association)
No. of Patents
Revenue in 2010
(KRW 100 million)
Net Income in 2010

(KRW 100 million)
Although kt has been leading the change in the domestic communications

industry by creating a smartphone craze, in order for it to secure future growth
engines and firmly establish itself as a Global ICT leader, kt needs to make
daring investments in new areas.
Sang-Hyun Cho
IR Department, Value Management Office
17.1
Dream with Shareholders
Creation of New Growth Engine
Economic Performance %
Brand Value Rate of smartphone users out of
Innovative Management total subscribers at kt
Global Sustainability Management
Shareholder Communication
To overcome the uncertain business environment stemming from stalled growth and vehement
competition in the telecommunications industry, kt formulated various plans such as business
diversification into non-telecommunication sectors, patent development, facility investment, and
launching of new services.
New Business through Acquisition

On June 1, 2010, kt acquired Kumho Rent-a-Car, the largest domestic rent-a-car company of
which the annual revenue stood at around KRW500 billion. This business diversification into a
non-telecommunication sector enabled us to restructure kt Group’s business portfolio and helped
Synergy Effect us establish a solid foundation for convergence services by integrating two different services
Asset
(telecommunication and automobile). From the group’s perspective, the acquisition enabled
Group synergy Business kt to maximize asset efficiencies by eliminating waste factors. By utilizing kt’s communications
Customer
infrastructure, development of integrated products is possible. Group synergies can also be
Economy of scale
Synergy from Decrease in interest expected through internal cross-selling and joint marketing. kt believes the acquisition will create
expenses
merger Common use of
synergies by enhancing efficiencies through economies of scale, reducing interest expenses
assets through refinancing, and jointly utilizing the distribution network & garages.
Patent Registration Patent Registration

kt is actively searching for new patents. In 2010, the number of reported inventions increased
Domestic Overseas
by 35% compared to that of 2009 as a result of the human management mileage allowance
and invention compensation. While patent registrations reflecting the new trend, such as the
729
634 N-Screen convergence service technology patent, have increased, patents related to traditional
526 communications technology have decreased. By focusing on high quality patent searches, including
standard patents, the number of A-class patents increased by 171% over the previous year.
43 57 76 Capital Expenditure
In 2010, we invested KRW3.06 trillion, a 3.3% increase from a year earlier. The main reasons behind
the increase were surging investment in the Internet and mobile phone businesses. Facility
2008 2009 2010
investment in the Internet business jumped 39.0% year-on-year due to expansion of WiBro and IPTV
Total 772 583 710
equipment while investment in the mobile phone business rose 11.9%. In 2011, we mapped out
a plan to increase facility investment in the mobile phone business to enhance network quality.
Investment Details (Unit: KRW 100 million)
Category 2008 2009 2010
Internet 8,836 6,033 8,388
Fixed phone 1,213 1,427 1,425
Mobile phone 9,635 7,295 8,164
Data 2,565 4,185 4,051
Telecommunication infrastructure 8,080 6,752 5,012
Others 1,174 3,895 3,532
Total 31,503 29,587 30,572
24
Percentage of Smartphone
New Service Launch Subscribers in Comparison to
Total Subscribers
Leading the Smartphone/Pad Markets (As of the end of 2010, Unit: 10,000 persons)
Through the distribution of smartphones and pads, kt is not only leading the mobile market, but Total Smartphone
Composition
is also leading the ‘smart revolution’ economically and socially. The iPhone that caused the global Subscribers Subscribers
smartphone craze was first launched in Korea in November 2009. Since its launch, kt sold over 2.4 kt 1,604 274 17.1%
million sets. With the introduction of iPhone4 in September 2010 and sales of over 1 million sets SKT 2,571 391 15.2%
in just a 4 months period, kt has become the leader in the smart era. The explosive demand for LGU+ 902 53 5.9%
the iPhone4 can be attributed to the high satisfaction of previous iPhone3GS users, over 300,000
applications (Apps), iPhone’s exclusive expansion capabilities through continuous upgrades,
our competitive rate policy such as the 3G + WiFi limitless data usage, and positive appraisal of
the close to 50,000 olleh WiFi zones across the country. In addition, by introducing the iPad in
November 2010, kt accelerated large scale consumption of contents as a media device, and led
the expansion of the pad market that is innovatively changing the digital lifestyle.
Smart Home Service

In the first half of 2011, by introducing the ‘smart homepad,’ an advanced version of the existing
video terminals or style phones, and the ‘Kibot,’ an edutainment terminal for children, kt started to
provide contents-oriented SoIP services rather than just voice services.
uCloud Service
In June 2010, kt launched uCould services where users can utilize diverse IT resources
(infrastructure, platform, software) as much as the user needs and wants, while paying for the ‘Kibot,’ an edutainment terminal for children
amount used. As a wired/wireless combined storage service, users can use mobile devices such
as tablet PCs and notebook PCs to access large amounts of data even without being in an office
environment. Cloud service refers to the overall service name, while the u in front refers to ‘your,’
in effect meaning existing anywhere and anytime (ubiquitous).
uCloud Service
Classification Special advantages
Home Automatic backup of personal data, up & download from diverse terminals
Storage
Automatic backup of corporate data, up & download from diverse terminals,
Pro
usage of common folders
CS* Virtual server service allowing users to easily organize (construct) systems
SS* Storage of large amounts of data & limitless online search service Introduction of uCould services
Computing
BS* Backup of large amounts of data & recovery service
DS* No initial investments required & convenient database service
CDN* Service helping transmit contents to many users * CS : Compute Service / * SS : Storage Service
* BS : Backup Service / * DS : Database Service
Service VDI* Outstanding virtual desktop service that provides high security and flexibility * CDN : Content Delivery Network
* VDI : Virtual Desktop Infrastructure
PasS(IDE)* Open platform service enabling application development & test environment * IDE : Integrated Development Environment
Mobile TV
kt is expanding its screen so that media services that can
only be enjoyed on existing TV screens can be viewed
anytime and anywhere through diverse devices. As a
result, kt introduced the mobile TV App. that allows
users to enjoy existing real time IPTV and VOD contents
on smartphones and pads. kt will create a new N-Screen
media consumption culture by expanding from mobile ‘olleh TV Now’ in your hands
TVs to PCs and 3rd party devices, and by linking with

diverse contents such as e-books and games. 25
586.1
Economic Performance
Brand Value KRW billion
Innovative Management Dividends
Economic Performance Overview

Operating Revenue
Breakdown (Unit: %)
Operating Revenue by Business (Unit: KRW 100 million)
2008 2009 2010

Category YoY Change
3.5 Revenue As % of total Revenue As % of total Revenue As % of total
12.3
Internet 24,186 20.5% 23,865 15.0% 24,923 12.3% 4.4%
22.3 6.5
Data 16,501 14.0% 14,502 9.1% 13,160 6.5% -9.3%
Phone 53,323 45.2% 47,606 29.9% 42,864 21.2% -10.0%
21.2 Wireless 10,066 8.5% 42,607 26.8% 69,145 34.2% 62.3%
Goods 8,551 7.3% 25,012 15.7% 45,029 22.3% 80.0%
Others 5,221 4.4% 5,470 3.4% 7,214 3.5% 31.9%

34.2
Total 117,848 100% 159,062 100% 202,335 100% 27.2%
Internet 12.3
Summary Statement of Financial Position (Unit: KRW 100 million)
Data 6.5
Phone 21.2 Classification 2008 2009 2010 YoY Change
Wireless 34.2 Current assets 37,781 64,746 61,118 -5.6%
Goods 22.3
Non-current assets 149,068 178,679 179,892 0.7%
Others 3.5
Total assets 186,849 243,425 241,010 -1.0%
Current liabilities 25,859 56,843 61,128 7.5%
Non-current liabilities 72,672 82,599 69,473 -15.9%
Total liabilities 98,531 139,442 130,601 -6.3%
Capital stock 15,610 15,645 15,645 0.0%
Capital surplus 14,406 14,486 14,498 0.1%
Capital adjustment -39,947 -21,657 -12,625 -41.7%
Accumulated other comprehensive income 108 -445 -826 86.5%
Retained earnings 98,141 95,955 93,718 -2.3%
Total stockholders’ equity 88,318 103,983 110,409 6.2%
Total liabilities and stockholders’ equity 186,849 243,425 241,010 -1.0%
Summary Income Statement (Unit: KRW 100 million)
Classification 2008 2009 2010 YoY Change
Operating revenue 117,848 159,062 202,335 27.2%
Operating expenses 106,714 152,946 181,802 18.9%
Operating income 11,134 6,116 20,533 235.8%
Non-operating income 8,553 8,843 5,731 -35.2%
Non-operating expenses 14,086 9,397 11,094 18.1%
Income before income taxes 5,600 5,562 15,170 172.8%
Income tax expense 1,102 396 3,451 770.8%
Net income 4,498 5,165 11,719 126.9%
26
Financial Ratios (Unit: %)
Classification 2008 2009 2010
Current ratio 146.1 113.9 100.0
Debt-to-equity ratio 111.6 134.1 118.3

Stability
Dependence on borrowings ratio 33.5 33.4 31.8
Interest coverage 3.4 times 1.4 times 4.1 times
Operating income margin 9.4 3.8 10.1
Net income margin 3.8 3.2 5.8
Profitability ROA (Return on assets) 2.4 2.1 4.9
ROE (Return on equity) 5.1 5.0 10.6
Operating cash flow to total assets 12.8 12.8 13.5
Operating revenue growth -1.3 35.0 27.2
Operating income growth -22.3 -45.1 235.8

Growth
Net income growth -54.2 14.8 126.9
Total assets growth 4.3 30.3 -1.0
Distribution of Economic Value by Stakeholder

Contribution to Distribution of
Dividends Local Communities Economic Value by Stakeholder
(Unit: KRW 100 million) (Unit: KRW 100 million)
2008 2009 2010 2008 2009 2010

Shareholders
Dividends 2,263 4,864 5,862 Social contribution (Dividend)
348 352 370
spending
Suppliers
Employee Compensation (Unit: KRW 100 million) (Investment, Employees
procurement) (Wage)
2008 2009 2010
Wage 18,101 18,412 18,405
Reserves for retirement allowances 3,222 10,717 2,076

Government
(Tax) Local
Welfare expenses and employee benefits 4,826 5,092 3,038 communities
(Contribution)
Total 26,149 34,221 23,519
Taxes (Unit: KRW 100 million)

Customers (Revenue)
2008 2009 2010
Income tax expenses 1,102 396 3,451
Taxes and dues 1,590 1,595 2,267
Total 2,692 1,991 5,718
Financial Support for Suppliers (Unit: KRW 100 million)
2008 2009 2010
Amount of cash settlements 21,186 17,562 29,665
Amount of financial assistance 2,298 2,961 3,103
27
Brand Value
Innovative Management
Brands are now valued as intangible assets that create corporate values. According to surveys on
the brand value of major global players, the brand value of kt has steadily increased since 2005.
Starting in 2009, we introduced “olleh” as a key component of the new company name, “olleh kt.”
olleh provides new impetus to the company’s brand strategy while functioning as familiar brand
to customers.
Especially in 2011, we combined various brands into one, olleh. The representative brand olleh
embraces all areas from fixed, wireless services as well as convergence services, enabling us to
create synergies and enhance efficiency in brand management. We operate the Group Brand
Management Committee, Group Brand Working Committee, and CIC (Company in Company)
Brand Working Committee to bolster our brand management system as well as to ensure all
related activities are aligned systematically.
Connection between Sustainability Management and Brand

kt spares no effort to establish corporate image as a sustainable company. To this end, we have
assessed the images of corporate brand and product brand, covering a range of assessment
indicators such as fair price policy, misleading advertisement prevention, environmental
preservation, social responsibility activities, etc.
Up to 2009, only customers participated in surveys. However, we expanded the target to

stakeholders at the government level and NGOs, and investors from 2010. The assessment results
are reported to the Integrated Marketing Communication (IMC) units of each CIC, and relevant
business divisions to be reflected in marketing strategies and sustainability management. We
continue to monitor external recognitions on our sustainability activities while integrating
sustainability management and brand management within the Sustainability Management
Committee.
olleh’s Evolution Process
July 2009 July 2010 January 2011

1st Stage 2nd Stage 3rd Stage
Role by Convergence Product / kt’s Representative Brand /

Management Slogan
Stage Service Brand Service Brand
Target by Establishing an Innovative Image Securing Wired/Wireless

Securing Convergence Leadership
Stage as a Merged Corporation Representative Brand Leadership
28
Group Brand Management System
At the kt Group level, we operate a Group Brand Management Committee, where executives of kt
and its affiliates participate to deliberate on and decide major issues on brand as well as internal
and external communications. In addition, the Group Brand Working Committee which is
comprised of team heads has a responsibility to submit proposals to the Group Brand
Management Committee and deal with issues on brands, public relations, and internal communication
among group companies. The CIC Brand Working Committee attended by kt’s team heads, discusses
issues on brand, public relations, and communication among the company’s CICs.
The Group Brand Management Committee determines strategies for brand policy & design and
advertising while setting the overall branding direction of the kt Group and affiliates to secure
consistency and enhance execution power. In addition, it deals with changes of Group brand
policy, deliberates on Group brand violence cases, and provides guidelines for Group brand
design and affiliates’ brand advertising. It is convened when necessary while Group Brand Working
Committee and CIC Brand Working Committee are held once a month.
Group Brand
Management
Agenda: Brand decision-making from the Group level & major Committee Agenda: Form & change major policy issue categories
communications issues such as internal/external advertising & related to the mother company’s, kt’s, company-wide brand
commercials
Member: Synergy Management Head, CIC IMC Head
Member: Synergy Management Head, Investment Management (Executive)
Head, PR Head, Affiliate Company IMC Head (Executive) Meeting Frequency :
Meetings whenever
matters arise
Group Brand Working Committee CIC Brand Working Committee

Agenda: Group level branding activities & internal/external Agenda: Group brand/design/advertising policy, category formation &
communication issues discussions related to individual product names
Member: Integrated Media Head (Team Head), Investment Member: Integrated Image Head (Team Head), CIC IMC Team Head,
Management Head (Team Head), PR Team Head, Group Communications Asset Development Head (Team Head), Management PR Head (Team
Head (Team Head), Group Marketing Team Head Head), IPR Head (Team Head)
Meeting Frequency: Once a month (Additional meetings whenever Meeting Frequency: Once a month
issues arise)
Brand Efficiency Assessment

Assessment on brand value and efficiency is conducted biannually by using the Brand
Performance Index (BPI). Consisting of brand awareness, brand attitude and brand behavior, the
BPI is designed for enhancing brand value and implementing brand management. The index
helps us decide marketing policies through brand performance results and relationship analysis
between marketing activities and brand index.
We also use Advertising Performance Index (API) to analyze how much our advertisements affect
our brand image. The API provides us with a wide range of useful information on message power,
image power, and creative power of our advertisements as well as those of peer companies,
helping us establish brand and advertizing strategies. Additionally, we carry out Brand Concept
Map surveys to incorporate customers’ initial impression on to our brands. Also, we hold
seminars where brand experts from academia and the industry participate to strengthen our
brand management capabilities while conducting brand surveys when brand issues occur.
29
381.8
Brand Value
KRW billion
Innovative Management Cost reduction
kt Innovation Area
Growth
BM Ideation Working Management

Process Method Structure
Creative Management WITH, Group PEG BIT Expense Structure
Innovation
Creative Management Program

kt initiated a creative management program in August 2010 led by the CC (Corporate Center)
Creative Management KPI and 32 members from the corporate customer sector to create new business opportunities by
Search for Opportunity Areas searching for new ideas on-site. The program aims at searching for opportunity areas, establishing
Improve Business for Corporate Customers future-oriented targets, strengthening senior management’s innovative competencies,
Creative Management Leadership Training
Satisfaction Level
improving management systems, and vitalizing internal communities. To increase creative
Creative Management Communications management awareness, KPI was established and reflected in the performance evaluation, while
Vitalization
the dissemination of creative management is promoted through training. In the future, efforts
will be further complemented to make sure that the endeavors taken to strengthen employee
creative management competencies are put into practice.
Project Expert Group (PEG)

kt established an internal consulting organization, Group PEG to provide solutions to special
Secure Concrete Performance from
issues affecting the company. To create a platform for project oriented work methods, kt focused
Special Project
Establish Company-wide N-Screen on establishing a PEG personnel pool, fostering competent employees, providing clear personnel
Implementation Plan compensation, and securing a PEG operations management system in 2010. In 2011, kt will
Corporate Culture Structure Improvements
through Internalization of Creative
enhance the performance of special target projects by upgrading project quality through interim
Management appraisals, adjusting roles between projects, and rearranging redundancies.
Open IPTV related Technologies to Prepare
for Smart TVs (Research Development / PR)
WITH (Way of Innovative Task management for High performance)
WITH is a work system to help realize the CEO’s philosophies on ‘way of working.’ It is also an
HR policy. It is a work tool organically linking work management & performance management
with knowledge management by carrying out work orders & reporting, and the evaluation
process within the system. Through WITH, a systematic and thorough work management, and
cooperative culture is possible. With fair and objective appraisals, it will be possible to foster and
secure competent employees, and firmly establish smart working.
WITH Process
Responsible Executive/Team Head Input Input by the Person in Charge
Interim Daily Final

Project Registration (Voluntary) Report Recording Report
Review/
Prepare Review/
Approve
Orders Implementation Prepare Report Approve Report Appraisal
Implementation
Plan Plan
30 Skip Implementation Plan

Request for
Cooperation
Cooperation
Order
Implement
Cooperation
BIT Project Implementation BIT Project
kt is implementing the BIT (Business & Information system Transformation) project to continue Platform supporting
business planning, finance,
improving its IT system. The BIT project is being implemented in 5 sections: management, Management
asset, distribution & human
sales support, operational support, service, and data analysis. In 2010, through the BIT project, management
process and IT integration was achieved for tasks related to “Integrated Customer Analysis Mart
Platform supporting
Sales
Establishment,”“Campaign Planning Integration,”“Wired/Wireless Response-type Integration,” and Support
marketing, sales, service
& billing
“Wireless Terminal SCM Optimization.” Since orders and line opening for wire is done at the ICIS
(Wired Sales System) and wireless was done separately at the N-STEP (Wireless Sales System), Company-wide strategic planning,
Data analysis required for monitory,
inconveniences were incurred. To eliminate these inconveniences, kt plans to integrate the Analysis providing information to the user
real-time
process from responding to customer, taking orders and opening the line into one system.
Platform supporting order
ERP Establishment Project & ‘Power User Group*’ Formation Operational
processing, network & line
Support opening
Between August 2010 and February 2011, a six months ERP TD (Transformation Design) project
was initiated to finalize the design for change in business management, investments/assets,
Infrastructure to enable merger
demand/supply, purchase, revenues, finance and human management areas. Based on the Service of services by establishing a joint
platform by service
‘innovation task’ which was generated at the ERP TD stage starting in April 2011, and the already
designed ‘To-Be Process,’ the ERP establishment project was implemented. By forming the ‘Power
User Group,’ to establish the BIT Cooperation System inside the main headquarters and divisions,
* Power User Group: Comprised of 213
kt will enhance the awareness of the BIT project and strengthen internal cooperation in areas
employees, the roles include change
such as sales support, operational support and data analysis. expansion from the establishment stage,
integrated testing, final user training,
preparation for data transfer, and stabilization
Expense Structure Innovation support
kt is focused on innovative activities to improve the expense structure by improving basic problems
in kt’s activities and processes, and expense inefficiencies. To achieve this, various measures
are being taken. They include structure & systems innovation, voluntary (and not controlled)
innovation, immediate compensation and company-wide implementation structure innovation
under the 3 principles of dispensing justice, and voluntary innovation on an organizational level.
Annual Performance of
Innovative Activities Performance Innovation Task (Unit: KRW 100 million)
As for the expense structure innovation, focused on productivity enhancement, cost

competitiveness improvement, and market expense efficiency, kt implemented a total of 107
tasks including 10 company-wide innovation tasks, resulting in KRW381.8 billion in expense 3,818
reduction. From the total reduction amount, KRW197.4 billion was reinvested in growth-based
business areas, thus completing the circle of growth. 2,188
Expense Reduction Performance: KRW381.8 billion (Unit: KRW 100 million)
Performance Amount 719

Productivity improvement through direct management & materialization of merger
1,275
synergies
Cost reduction through asset cleansing & investment efficiencies 671 2008 2009 2010
Elimination of inefficiencies through improvement in managing sales expense 474
Voluntary implementation tasks on a departmental level 1,398
Total 3,818
Future Direction
kt will strengthen voluntary innovative activities by organization, induce internalization of
innovative activities by reflecting performance appraisals from the innovative activities and
expanding compensations, and focus on implementing improvements on a root level for chronic
problems company-wide.
31
Brand Value
KRW 107.7
Orders from global
billion
Innovative Management
IT business
Sustainability Management at Overseas Subsidiaries

To extend sustainability management into our operations abroad, kt established and provided
Code of Conduct and Global Sustainability Management Guidelines to our overseas joint
ventures in their local languages. The Guidelines provide guidance on ethical management, social
contribution, information protection, and compliance with International labor standards. We are
strengthening sustainability management globally by monitoring and providing education to
our overseas joint ventures.
Creation of Smart Belt

kt is endeavoring to create a global smart ecosystem encompassing Korea, China and Japan by
entering into cooperative relations with China Mobile and NTT Docomo, leading operators in
China and Japan. The proposed areas of cooperation include creation of “OASIS,” a super app store
where 650 million people in Northeast Asia can use, Free Roaming Area (FRA) in which customers
are able to use WiFi free, and joint research on Long-term Evolution (LTE), a next-generation
mobile Internet technology. The cooperation will provide customers with greater convenience
Strategic Alliance with China Mobile and NTT while kt and two partners have the opportunity to secure future technologies.
Docomo (Jan. 2011)
Global Competitiveness
Utilizing the accumulated success in Korea, kt is making inroads into the global market. The
company strengthened its competitive edge through M&A and joint ventures while providing
services for establishing telecommunication infrastructures, public infrastructures, and ICT
services (U-City) to governments and companies overseas. In addition, high-end satellite services
are provided through our satellite olleh 1.
Global ICT Business Model Global IT Business

Wired/wireless Network On the back of extensive expertise in building and operating various kinds of ICT infrastructure,
Nationwide backbone network, broadband including PSTN*, broadband Internet network, WiBro network, BCN**, IPTV, CDMA and WCDMA, kt
Internet, WiBro
is expanding its business overseas by targeting governments and telecom operators in emerging
Public Infrastructure Service
markets. Additionally, we are actively venturing into overseas markets by providing customers
Security network, education network, ICT
center, Internet Data Center (IDC)
with world-class solution platforms and consulting services. We leverage our global network that
connects major countries around the world to provide end-to-end data lines and IP services as well as
Convergence
fixed and mobile satellite telecommunication solutions globally.
U-City, mobile control(CCTV), Intelligent
Transportation System (ITS), Managed service *PSTN : Public Switch Telephone Network / **BCN : Broadband Convergence Network
ICT Solutions
Orders from Global IT Business (Unit: KRW million)
CellTREK (Wireless network design),
New Operation Support System (NeOSS)
Category 2002 2003 2004 2005 2006 2007 2008 2009 2010
Solution 1,920 5,541 4,414 5,200 3,315 8,406 1,626 2,122 1,800
Consulting - 748 - 70 - - 1,327 101 46
Telecommunication
- - 33,609 350 138 22,258 71,846 73,717 99,716
network
Others - - - - - - - 56 6,200
Total 1,920 6,289 38,023 5,620 3,453 30,664 74,799 75,996 107,762
32
Share Ownership
Share Ownership (Unit: shares, %) (as of the end of 2010) (Unit: %)
Shareholder No. of shares owned Ownership

1.56
Foreign investors 126,681,567 48.52 6.85
8.26
Domestic investors 90,907,180 34.82
National Pension Service 21,557,950 8.26

48.52
Treasury shares 17,895,964 6.85
ESOP 4,069,147 1.56

34.82
Total 261,111,808 100%
IR Activities
Foreign investors 48.52
Category Details Remark
Domestic investors 34.82
IR conference Performance and overall business situation Year-round National pension service 8.26
Business result presentation Quarterly results Once a quarter Treasury shares 6.85
ESOP 1.56
Business report (quarterly, half-yearly, annual) Once a quarter
Audit report Once a quarter

Reports
Annual report Once a year
Sustainability report Once a year
Shareholder Return
kt adopted the cumulative voting and written ballot system to protect the rights of minority
shareholders. Moreover, in principle, a return of at least 50% of the previous year’s net profit is
provided to shareholders as dividend. At the March 2011 General Shareholders’ Meeting, a
resolution was passed to distribute KRW586.2 billion in dividends for the FY 2010.
Dividends
Category 2008 2009 2010
Par value (KRW) 5,000 5,000 5,000
Net income (KRW million) 449,810 516,533 1,171,866
Total dividends (KRW million) 226,280 486,393 586,150
Dividend payout ratio

50.3% 94.2% 50.0%
(Dividend/net income)
Dividend yield ratio

2.9% 4.9% 5.0%
(Dividend per share/share price)
33
All management processes and activities have been redesigned to be customer-oriented for
implementing a differentiated customer value management. To be number 1 in all CS categories, kt
is initiating various tasks such as zero-defect, 3 major contact point innovation, smart kt realization,
customer sensation company-wide innovation and CS infrastructure enhancement. Activities such as
communications with customers and customer information protection have also been strengthened.

External (0~100%)
100 A CS Management System / VOC as Strategic Asset

B A
C B Differentiated Service
80
Ⓓ C Stable Telecommunication Service
Ⓔ
60 Ⓓ IT Security and Customer Protection
Ⓔ Solving the Side Effects of Informatization

40
Ⓕ Customer Communication
20
Ⓕ
20 40 60 80 100
Internal (0~100%)
Major Performance
Category 2008 2009 2010

Mobile Phone 66 69 72
Customer
Broadband Internet 67 70 70
Satisfaction Index
Wired Phone 71 72 73
Mobile Phone 0.96 0.96 0.97
CVA Broadband Internet 1.02 1.00 1.03
Wired Phone 1.03 1.00 1.04
• Advertisement of the year - Internet category (Korea Association of Advertising Agencies)

• 18th Good advertisement award chosen by consumers, Minister of Culture, Sports & Tourism award (Korea Advertisers Association)
• No. 1 in four categories (Broadband Internet, Internet call, city local call, long-distance call, international call) by Korea Customer
34 Satisfaction Index (KMAC)
2011 kt 지속가능경영 보고서
34
In the customer satisfaction survey held for major
communications service companies, kt received
the appraisal. However, in some categories the
results did not meet expectations. Efforts need
to be made with an attitude that customer
satisfaction is the priority in the entire process
from designing services, providing services to
after-sale services to be a company chosen by
customers.
Se-Hee Kim
CS Innovation Department,
Customer Satisfaction Bureau
Customer Satisfaction
Index (Mobile Phone)
CVA
(Wired Phone)
Customer
Satisfaction Index
(Broadband Internet)
Dream Big 35
Dream with Customers
CS Management System
VOC as Strategic Asset
Differentiated Service
Stable Telecommunication Service
IT Security and Customer Protection
Solving the Side Effects of Informatization
Customer Communication
We at kt pursue customer value-oriented management by re-aligning our vision, principles

and core values to meet the needs of our customers, and by displaying differentiated customer
satisfaction (CS) activities. All of our CS activities and procedures are to be carried out consistently
in accordance with our five strategic directions.
Slogan
Customer Satisfaction, Jumping and Jumping More

5대 CS경영 원칙
5 Major CS Strategic Decisions
Zero Defect 3 Major Point Customer Sensing Strengthening

Product of Contact Company-wide CS Smart = kt
Innovation Innovation Innovation Infrastructure
• Customer-oriented products through • Strengthen customer center self-regulated

participation & verification of competencies & establishing operating system
customers & field • Withdraw business site (Work-Out) if the call
• Complete restructuring & slimming Zero Defect Product 3 Major Point of opening & A/S quality appraisals
abstruse & difficult products Innovation Contact Innovation continue to be low
• Improve CS influent on branches
by revising the rate structure
5 Major CS
• Strengthen smartphone A/S & • Strengthen customized products
foster smartphone experts Strategic by customer segments & rate plan
Customer
• Establish & expand Decisions Sensing • Search & improve customer
experience-oriented smart stores Smart = kt Company-wide complaints through active
• Operate Smart Supporters for Innovation communications with field
smart terminal training & experience
Strengthening CS
• Strengthen strategic utilization of VOC when • Establish & operate a performance management
Infrastructure
initiating management/business/ marketing structure for all departments related to CS
• Integrate into one the wired/wireless CS operating system
CS Implementation Process
CS Activity Related CS KPI
CS improvement activities are implemented gradually depending on the organization such as
Classification AS-IS TO-BE customer point-of-contact, division, or headquarters. The target task is enhancing customer value that
Strengthening
PRB* index Provided a KPI customers can directly feel such as rates, quality, brand, service and benefits. To effectively manage
without weighted-
index
management
weighted- average of 20 this, kt uses an internal management system, Kate. Outstanding tasks are rewarded. In addition, to
average points
Limited Organically
establish and operate performance management systems organically for customer satisfaction,
Expand
applicable
operations in connected starting in February 2011, CS KPI was reflected in all departments related to CS activities.
only certain “Division-HQ-
departments fields Field”
Non-operations
Fixate VOC of VOC
Adopt VOC To unify the CS operating structure, 20 items were selected in 4 categories and integrated. First,
responsibility
responsibilities responsibility for the point-of-contact category, the call center number/consultation system and billing were
policy
policy
*PRB: Performance Review Board

integrated. In the product category, product introduction process, categorizing system, subscriber
applications were improved. Unifying the CS operating structure and all tasks excluding related IT
system establishments are planned for integration during the 2nd half of 2011..
36
24 hours a day
VOC monitoring via twitter
Converting VOC into an Asset

The strategic conversion of VOC into assets is to divert from the point-of-contact being the central
department for treating VOCs. It is rather an effort to utilize VOCs for real improvement activities
on a company-wide level. To achieve this, efforts are being made to integrate and unify into one
VOC category system the already divided wired and wireless, with the collection·response system
and analysis system by customer unit. In addition, through the olleh management meetings, the
VOC impact review must be mandatorily carried out for major business plans.
Voice of Customer (VOC) System

kt operates a VOC system to identify customers’ needs, explain their needs company-wide, and
solve problems immediately. We also offer service packages that include “pre-inspections of
services,” “improvement of business processes,” and “boosting customer loyalty by heeding the
advice of key customers.” The VOC system empowers employees at the point of contact with
customers to address the problem immediately. When impossible, the customer request is sent
to the person in charge and the complaint is resolved within nine hours from the time it was
received. To carry out VOC improvements company-wide, the VOC control tower, VOC council
and MOT meetings are utilized internally. Measures are also taken to meet VOCs related to WiBro,
call quality and Nespot. Continuous efforts are placed on early VOC analysis and improvements
measures related to the iPhone4 and iPad.
Dealing with VOCs Real Time Using Twitter Twitter VOC Implementation System
kt is able to deal with VOCs on a real time basis by establishing a twitter based CS system and two- Communications Field (ENG
way VOC processing system. With this, the company is hoping to convert from the existing call Network Team/Access Customer
Management Network Center
center focused VOC processing system to a text-based SNS VOC processing system. In addition, by Team Team)
converging the twitter VOC processing duties into one window, field work efficiencies have improved. Observation / Twitter VOC
improvements improvements /
A 24 hour monitoring and real time improvement response system has also been established. required notification Twitter
VOC
After customer
Processed by
SNS(Yammer) response
Processes for Handling User Complaints concerned
registration 24 hour
department
notify through response
Results notified
MMS system
One-stop handling review
(greater authority for contact point employee) Pattern analysis CEO: immediate
/ establish General: within
Customer service Comprehensive
Visit Agency, kt Plaza response method a Day
After service VOC management
Quality
system
Telephone Customer Center Filing
Privacy
DB
Handset Statistics
handling
User Internet Cyber Rate
VOC handling
Customer service request
VOC management (handle within 9 hours) Regional BU
Customer facility Representative Processing
by category
Sales support Feedback on VOC result
Internal control index Result analysis, feedback

Feedback
User survey / Customer satisfaction study Head office/Business unit
(management index,
internal control index)
User contact point channel User contact point User consultation area User VOC management
We introduced the Consumer Complaints Management System (CCMS) in May 2007. Key
executives responsible for customer service manage the CCMS. Customer opinions are also
collected, classified and analyzed by the Customer Relationship Management (CRM) system.
37
3.5
VOC as Strategic Asset Lowest in
Differentiated Service Korea KRW
Stable Telecommunication Service Data roaming rate
Efforts to Actively Provide Customer Benefits

Alleviation of Customer Rate Burden through Combined Products
To alleviate the burden on the customer, a ‘Customized Rate Plan’ was launched where the user
can make adjustments based on user pattern of ‘voice-text-data.’ Wireless data not used that
month can be carried over to the following month. To encourage data roaming, starting in August
2010, the global data roaming rate was lowered to the lowest domestic rate at KRW3.5 per packet,
while MMS rates were applied per message, resulting in an average 90% rate reduction. In May
2011, kt introduced a new combined product, the ‘Unite, olleh,’ which provides discounts to new
Introduced “Unite, olleh,’ a family combined smartphone subscribers, subscribers changing smartphones and to existing mobile phones.
product
Data Communications Expense Reduction by Expanding WiFi

As WiFi is expanding, WiFi Zones that were once installed in Seoul & metropolitan areas and indoor
areas are now being installed in diverse areas. To enable the use of WiFi while travelling on public
transportations, the ‘Public Egg,’ which is used for public transportation, has already been installed
on Seoul’s Metro 9 line, all Incheon subway lines, Busan’s line 4, airport rail line, Bundang line, Ilsan
line, Chungang line, Gyongeui line, Gwacheon line and major city bus lines. In 2011, installation of
the ‘Public Egg’ will be expanded to cover all subway lines in the Seoul and metropolitan areas. In
addition, through olleh WiFi roaming, data roaming costs are now more than 99% cheaper than
“Public Egg” that allows customers to use that of the general data roaming cost in 100 major countries.
wireless Internet in high speed vehicles
Enhance Customer Benefits through Partnerships

‘olleh Club’ was launched in June 2010, enabling customers to use their accumulated points when
purchasing wired/wireless terminals or settling phone bills. To allow customers to experience the
latest IT trend and to utilize IT to enhance life’s values, a ‘Membership Lounge’ was opened at the
KTX train terminal, allowing customers to freely experience smartphones and tablet PCs. Through
‘olleh Square’ and ‘olleh Avenue,’ customers cannot only experience hi-tech IT devices, they can
also use it as a relaxation and cultural venue.
kt olleh Square at Gwanghwamun Office Boosting Customer Convenience & Benefit

Building
Integrated Fixed-Mobile Services and Integrated Online Channel
e-Billing Trend
Upon starting as an integrated fixed-mobile services provider in 2009, kt integrated its previously
(Unit: 1,000 cases)
separate fixed and mobile customer centers into a full-service, one-stop “100 Call Center” to
Fixed Mobile enhance user convenience. The integration allows all fixed and mobile customers to easily access
86,247 * the help they need in one single step. Moreover, a comprehensive corporate portal (www.olleh.
com) that covers products and services for fixed and mobile customers, also offers information on
service charges and user terms. Users can visit this site to apply for or cancel subscriptions, check
53,816 bills, change service plans and handle other matters.
36,850
35,711
Expansion of “One Billing” and “e-Billing”
kt is expanding the number of e-billing subscribers, who receive their bills by mobile phone or
32,431
email, in order to reduce costs and resource usage from sending bills in the mail. We also plan to
2008 2009 2010 provide an integrated billing (“One Billing”) service to customers who use multiple kt services. This
* Mobile service billing was added due to merger with ktf will allow them to more easily track household telecom expenditures. Moreover, customers who
apply for the service will be able to receive one-stop consultations for greater convenience.
38
Customer Quality Warranty System
We operate a customer quality warranty system which involves a customer satisfaction evaluation
immediately after customers receive services such as service initiation and after-service. The
registering of customer requests on-site allows us to use the information to improve services. IT
engineers who provided the relevant service present customers with a service quality warranty
to boost customer trust.
Expansion of Before Service (B/S)

kt adopted a preventative before-service system in addition to its existing after-service system to
minimize inconveniences and maximize customer value. The B/S system assesses and addresses
facilities which have a high likelihood of malfunctioning.
Differentiated Service for Customer Delight

As an extra consideration for customers, kt technicians visiting homes to initiate services or
provide after-service wear overshoes and place their tools and equipment on a special work pad.
We have also recruited more female technicians in consideration of the fact that most of the
customers who come in contact with installation or after-service technicians are housewives.
Customer Point-of-Contact CS Quality Innovation

Unifying Customer Point-of-Contact Response Knowledge
As IT related consultations are becoming more complicated, it is necessary to have the consultants
provide unified information and responses. As such, kt opened the ‘olleh Ji (Knowledge) zone,’ an
integrated wired/wireless consultation knowledge system. Through this, it provides a platform
for the consultants to easily search for information that the customer requested. Q&As were held
for consultants from the headquarters level to prevent misinformation, while the consultants
were constantly monitored for wrong call forwardings. To make sure the person in charge does
not disseminate wrong information, internal extensions of those responsible for services were
shared. A short study video was made on newly introduced smartphones to enhance expertise
in providing consultations. New employees assigned as consultants are required to thoroughly
read the training manual before entering the field.
Reduce Standby Time for Consultation

To be able to expediently respond to customer’s enquiries new customer centers were opened in
Wonju, Cheongju and Dangsan, with 600 new consultants hired. By allowing consultants to work
from their home, experienced & skilled employees can flexibly chose their work environment. By
making improvement to the bill so that the customers can easily understand the information on
the bill, inbound calls have been reduced, while standby time has also been reduced.
Reduction in Customer Point-of-Contact Inbound Calls*

In March 2011, the self-regulated target management method by the CIC was changed into
* Inbound Call
a company-wide target management method to innovatively enhance the quality of the Calls from customers for purposes of
consultations as inbound calls have been reduced. In addition, from the top 10 negative VOCs consultation
that were selected, efforts were made to eliminate the root cause and implement improvement
measures. To evenly distribute inbound and outbound calls various measures were taken. Some
included improving the before and after process of launching a product, improving two-way
email / SMS, and improving the bill.
Establish a Call Center Self-regulatory Responsible Management System

To help affiliate call centers establish a responsible management system and enable them to take
full responsibility of their own performance, we transferred various duties to affiliate companies,
excluding the SLA (Service Level Agreement).
39
Differentiated Service
Stable Telecommunication Service
50,000 WiFi areas
areas

Dual Network Monitoring System

Dual Network Monitoring System
As Korea’s largest IT network operator, kt employs various measures to prevent disruptions
Nationwide network center and ensure stable and reliable telecom services at all times. We currently run regional network
1 >> Nationwide monitoring
and controlling
operation centers in Seoul, Busan and seven other regions to monitor local service quality, while
a nationwide network center in Gwacheon features a real-time monitoring function, completing
Regional network operation center
(Switchboards, transmission lines, Internet a dual network monitoring system. We carry out year-round preventive measures for all facilities
>>
infrastructure, and power supplies)
9 that could cause service disruptions, including switchboards, transmission lines, Internet, and
Regional monitoring
and controlling
power supplies.
Network service center
39 >> Maintenance and repair

of telecommunication
facilities
Emergency Recovery Drill
To be ready for occasions when services are disrupted by natural disasters or accidents, kt engages
in annual emergency drills with other telecom operators led by the Korea Communications
Commission. kt has also equipped itself with 7,800 units of 208 types of different emergency
recovery equipment such as switchboards, Internet devices, transmission devices, engine-
generators, and Satellite News Gathering (SNG) by the Mugunghwa Satellite and regularly
performs emergency recovery drills. Additionally, the fourth day of every month is designated
“safety day.” On this day, each business site undertakes safety training and checks key facilities to
ensure speedy and effective response to natural disasters or accidents.
Picture of the Equipment Rack Base Isolation
System Undergoing Earthquake Resistant Tests Earthquake Preparation Plans & Earthquake Resistant Solutions
To provide stable communications services during earthquakes, kt developed a double floor
layer system that satisfies appropriate earthquake resistance performance standards as posted
by the government. This system has already been applied to the required facilities. Earthquake
measures for communications equipment are being implemented by installing equipment
racks that have been proven for their earthquake resistant performance. In addition, the
equipment racks do not have to be fixated to the floor. To enable existing equipment racks to be
WiFi Investment by Region (Unit: %)
earthquake resistant, kt developed an equipment rack base isolation system. In the future, this
will be used in locations where equipment rack cannot be anchored to concrete floors.
8.7
10.8
Establish a Mobile Wonderland
kt is leading the new changes occurring in the communications environment, such as the
expansion in smartphones & wireless data explosion, expansion in diverse applications, and the
11.3 formation of ecosystems. Utilizing kt’s superior wired/wireless network infrastructure, kt created
57.4
a ‘Mobile Wonderland’ by providing the world’s best standard 3W network (WCDMA, WiBro, WiFi)
11.9
services. As of March 2011, there were 50,000 WiFi stations. However, by the end of the year there
is expected to be more than 100,000 WiFi stations installed. As of April 1, 2011, WiBro boasts the
world’s best nation-wide coverage network in comparison to the population.
Metropolitan area 57.4

As the leading WiFi company, kt is actively developing new relevant technologies to enhance
Gyeongnam 11.9
WiFi quality. Unlike the existing WiFi AP (Access Point) that supports a 2.4GHz bandwidths, the
Honam 11.3
premium WiFi developed from domestic technology, supports a 5GHz bandwidths in addition to
Chungcheong 10.8
the 2.4GHz bandwidths, eliminating any frequency interferences. The access capacity and speed
Gyeongbuk 8.7
is 3 times and 8 times, faster than the WiFi AP, respectively.
40
91 %
Rate of employees who received
customer information protection
education
Expansion of Customer Information Protection Infrastructure

kt strengthened its technical and operational capabilities by improving encryption systems,
establishing new DB access controlling systems, adopting access log forgery/falsification
prevention systems, and installing systems for checking multiple hits of customer information to
prevent hackers’ unauthorized and illegal use of customer information. We introduced the Digital
Right Management (DRM) solution in 2007 and the Data Loss Prevention (DLP) solution in the first
half 2011, to monitor data flows on personal computers, thus blocking customer information leaks
and misuse. We routinely check for potential weak spots in all of our systems, including personal
data storage. Simulated training sessions are conducted in cooperation with other public sector
organizations to prevent and respond to relevant risks.
Enhancing Customer Information Protection Efficiency

kt’s personal information protection policy is in compliance with Korea’s Act on Promotion of
Information and Communications Network Utilization and Information Protection, Personal
Information Protection Law (effective from Sep. 2011) as well as other related regulations. We run a
dedicated webpage (http://privacy.kt.com) to respond to customer’s inquiries. Beyond implementing
the basic policy, we continue to expand our data security infrastructure given that most information
leaks result from hacking and careless data management, while requiring security checks on all new
services. All employees are now required to sign a pledge every year to protect customer information. Customer information protection website
In addition, we routinely check the personal information protection activities of our sales agents and
partner firms to ensure compliance is upheld. kt also visits branches and partner companies to instill
greater awareness about the importance of protecting customer information. In 2010, 91% of our
employees attended the customized on-site education programs targeting personnel in charge of
customer information protection. We built an e-learning system to conduct related online training
for all employees twice a year while utilizing office e-mails and electronic bulletin boards to raise
employee awareness on customer information protection.
Information Safety Inspection

Every year, kt conducts the information protection safety inspections in accordance with the law
and obtains external safety certification on services and key ICT facilities. Our branches, call centers,
partner firms, and webpage are subject to our customer information security certification to heighten
privacy protection. Our subsidiaries also adhere to the protection policy practiced by kt.
Complying with Legal Standard on Electromagnetic Radiation

We conduct tests on all handsets to measure their specific absorption rate (SAR). All devices are
registered and sold only after they meet the government’s SAR limit of 1.6 W/kg. To make sure
there are no customer complaints from installing wireless base stations, we build base stations in
an eco-friendly way. For base stations with strong signals, electromagnetic radiation measuring is
compulsory. They are also classified as measurement targets. Output signals from these stations
are maintained at a minimum. In addition, to make sure there are no principal damages due to
electromagnetic radiation, environment request documents for telecommunications equipment
are required so that the supplier can help prevent tolerances or disorders and protect the human
body. For the past five years internal studies have been carried out on the potential affects from
electromagnetic radiation. As such, kt is placing substantial emphasis on protecting consumers.
41
1,100
Differentiated Service sites
Stable Telecommunication Service Preventing access to harmful
overseas sites
e-Clean Activities
We developed the “Clean-i,”“TimeCodi,”“iAlimi,” and “NOLeTEO” services for our olleh Internet service
users. The “Clean-i” application blocks pornographic materials distributed through P2P programs
and various harmful websites, while the “TimeCodi” application prevents Internet addiction
by cutting off access after a preset usage time is over. These two services have been in place
since 2002, and are now used by more than 300,000 customers. In March 2009, we introduced
an application called “iAllimi,” which allows parents to easily understand the harmful level of the
“Clean-I Mobile,” an application blocking internet environment which their children are exposed to. This program is available free of charge
access to harmful websites on smartphone to all users, including non-kt customers. In November 2010, we also began the “NOLeTEO” service.
This service was designed to offer a clean Internet environment to children by blocking access to
harmful websites and limiting usage time for Internet and online games.
In addition, we are partnered with the Korea Internet Safety Commission (KISCOM) to prevent
access to over 1,100 harmful overseas sites, and we developed a system to prevent indirect access
to these sites. We continue to monitor websites for harmful factors, while providing customers
with content ‘grade level.’ Website pages are required to post viewer age limits.
Cleaning of Our Portal Site

e-Clean Services Status
Paran.com, which is run by our subsidiary ktH, regularly monitors contents on its open message
Service Details board, blogs and photo community (pudding). As user-participation services and user-created
olleh Internet
Blocks access to harmful
websites, such as those
content (UCC) becomes popular, the number of harmful postings increased gradually. In 2010,
Clean-i that provide lewd or violent a total of 19 million postings were registered on Paran.com, with 3.9% of them being harmful
material
Arranges and manages postings. Recognizing the problems, we require users to verify their age through personal ID
olleh Internet
Internet usage by time period
TimeCodi
and day numbers in order to obtain access to any Paran.com web page that contains adult contents.
olleh Internet Blocks and cures viruses and The portal site employs an AI technology-applied screening program and IP-blocking system to
Doctor malicious code attacks
Encryption of
Ensures protection from monitor UCC and other interactive services. By blocking the services that violate the rules of the
information
hacking by encrypting
entered
information entered through site and taking preventive measures, we are cleaning our portal site. In addition, kt runs a reporting
through the
the keyboard
keyboard center and hotline for stamping out online pornography and illegally distributed contents. To
Internet clean index reporting
iAllimi service (records of visits to facilitate these activities, we share relevant information with many external agencies.
harmful sites, etc)
Blocks access to harmful
NOLeTEO websites and limit time for
Internet and online games
Prevention of Internet Security Threats
“olleh Internet Doctor” was launched in August 2007 in order to protect customers from the
increasing number of cyber threats such as cracking, spam emails and phishing. This free-of-charge
application features a personal firewall, automatic PC diagnosis, application fix management,
overall system optimization, and anti-virus function. An anti-phishing feature was additionally
offered to prevent damage from e-mail fraud, a growing problem.
42
73 points
Customer satisfaction index
(Wired phone)
Establishing Diverse Channels

By opening the ‘olleh.com’ in January 2011, various wired and wireless websites have converged
into one. As a result, kt was able to gather the previously dispersed online customers into one
website. In addition, to take care of its customers 24-hours a day, a 24 hour branch service was
opened starting February 2010, the first in the communications industry. This service caters to
the needs of customers whenever and wherever. As the use of the smartphone environment
is expanding, we opened ‘olleh Avenue’ to reflect customer suggestions and experiences onto
various terminals and services. Customers can also request network quality improvements
through the smartphone application, ‘olleh Cok Cok.’
Operating an SNS for Customer Communications

Since the SNS is fast becoming a core channel for customer communication, kt is actively pursuing
SNS. Customer suggestions are being heard real time through ‘olle Mobile,’ Twitter and Blogs. These
suggestions are then expediently processed and resolved. By having the exclusive internal SNS
‘Yammer’ connected real time, customer suggestions can be delivered real time to all employees
at kt. Starting in October 2010, a ‘Twit Genius’ group was formed to provide quick responses to
enquiries made through various SNS related to smartphones. Customer improvement request
items and suggestions are immediately relayed to the relevant department, which is then solved Six experts selected as “Twit Genius”
as quickly as possible. At the same time, by having the ‘Twit Genius’ disseminate smartphone and
tablet PC information related to their usage through Twitter and Blogs, customer complaints have
dropped.
Top in CS Surveys CS Survey Results in 2010

kt won the grand slam in three major CS surveys. The National Customer Satisfaction Index (NCSI)
Survey Result Date
survey by the Korea Productivity Center (KPC) has designated kt as the No. 1 service provider of
Broadband
National
broadband Internet service and city local call service for seven consecutive years, long-distance Customer
Internet, Internet
call, city local call, Mar. 24, 2010
Satisfaction
call service for 13 consecutive years, and Internet call service for two consecutive years. In addition, Index (NCSI)
long-distance call,
international call
the Korea Customer Satisfaction Index (KCSI) survey and the Korea Service Quality Index (KS-SQI) Broadband
Korea
survey recognized kt as No. 1 in several service areas such as broadband Internet, IPTV and Internet Customer
Internet, Internet
call, city local call, Sep. 30, 2010
Satisfaction
phone. These recognitions are due to our continued innovation by changing the way of thinking Index (KCSI)
long-distance call,
international call
and communication, which enabled us to provide future services to customers in advance. Korea
Service No.1 in broadband
Oct. 20, 2010
Quality Index Internet and IPTV
Customer Satisfaction Index by NCSI CVA* Scores (KS-SQI)
Mobile phone Broadband internet Wired phone Mobile phone Broadband internet Wired phone
74 1.06
73
1.04
72 72 1.04
72 1.03 1.03
71 1.02
1.02
70 70
70 1.00 1.00 * CVA
69 1.00 kt’s score / No. 1 competitor’s score
68 0.98 0.97
in customer satisfaction
67
0.96 0.96 Classification according to the CVA score range:
66 0.96
66 Top-level competitiveness (1.1 or more),
0.94 Outstanding competitiveness
64 (1.03 or more and less than 1.1)
0.92
Average-level competitiveness
62 0.90 (0.97 or more and less than 1.03)
2008 2009 2010 2008 2009 2010
Low-level competitiveness (lower than 0.97)
43
To achieve a Great Work Place where trust, passion and fun are in abundance and where there is a balance in
work and life, fair human management policies and diverse welfare programs have been put in place to help
attract competent employees and enable them to grow. Through an HR policy that fosters the best experts,
kt is securing IT competencies. In addition, continuous efforts are being placed on securing human rights and
safety & health for employees, while fostering a transparent communications environment.

External (0~100%)
100 A Great Work Place
B Fair Human Management System

80
B A C Employee Welfare and Benefits
D
60 D Human Resource Development
Ⓔ C Ⓔ Labor-Management Cooperation / Safety and Health
40 Ⓖ
Ⓕ Ⓕ Human Rights
20
Ⓖ Employee Communication
20 40 60 80 100
Internal (0~100%)
Major Performance
Category 2008 2009 2010
Welfare and Wage (KRW 100 million) 18,101 18,412 18,405

Benefits Welfare Spending (KRW 100 million) 4,826 5,092 3,038
HR Participants of Classroom Education (persons) 41,567 24,072 35,286

Development Language Academy (persons) 8,614 8,903 6,524
No. of Grievances Received 19 12 11

Grievance
No. of Grievances Handled 18 12 11
• Family-Friendly Company (Ministry of Gender Equality & Family)

• Labor-Management Culture Grand Prize - Presidential Award (Ministry of Employment and Labor)
44
●
dream with shareholders
Wage in 2010
(KRW 100 million)
●
2011 사회적 책임 보고서
Participants of
Classroom Education
(persons)
No. of Grievances
Received
I believe kt’s HR management, up to now, was well managed, creating

a balance between the individual’s competitiveness and the company’s
productivity. Going forward, to diversify into non-telecom areas and to
expand into the global market, it will be necessary to foster competent
employees early on that are appropriate to a future business structure.
Eun-Bee Kim
HR Planning Department,
Human Resources Office
45
Dream with Employees
Great Work Place
Employee Welfare and Benefits
18.7
Average length of employment
years
Human Resource Development
Labor-Management Cooperation
Safety and Health
Human Rights
Employee Communication
Employees are both the generative source of corporate competitiveness and the key competitive
edge of the company. kt pursues “partnership in growth,” whereby labor and management
advance in tandem to foster a “win-win” corporate culture. This approach is designed to bring
together company productivity with individual employee competitiveness. Our goal is to
increase the value of our people by maintaining trust, passion and fun in the workplace, as well
as a harmonious work-life balance.
Employment Status
As of December 2010, a total of 31,155 employees worked at kt, with the average length of
employment being 18.7 years. Employment rate of disabled workers was 2.43%, meeting the
government-mandated minimum of 2%. Number of female workers totaled 4,621, representing
14.83% of total workforce. Employees are hired either on permanent or temporary status to meet
our requirements for specific job skills and work competencies. The portion of temporary workers
has increased during for the last couple of years and reached 1.35% as of the end of December
2010. We strictly adhere to the Temporary Employee Protection Law and provide our temporary
employees with fair compensation. In addition to our domestic employees, we employ more
than 2,000 people at subsidiaries in Mongolia and Russia.
Strategy and Direction
•Strengthening family-friendly
management
•Expanding employee welfare
A workplace where •Encouraging productive, efficient
work and life are meetings
balanced
•Work-centered employee
career management
•Unearthing and nurturing •Invigorating internal
talent communication
•Helping employees to •Expanding zero-accident
grow into experts safety activitiese
A workplace full of trust, passion
and fun, where work and
life are balanced
A workplace that
guarantees personal A workplace full of
growth and trust
>
opportunities
New kt Way : Action
By creating a GWP (Great Work Place), employees are voluntarily focusing on their work with
an ownership attitude, creative mind-set and passion. This not only enhances corporate
competitiveness, it provides for continuous growth for all employees. In the past, kt’s corporate
culture was mainly focused on improving work processes. Now, the emphasis has changed
towards providing basic needs focused on satisfying employees, which will then lead to customer
satisfaction. Customer satisfaction will then lead to securing market competitiveness. Through
this, kt is trying to create a cyclical structure where each factor leads to another in a continuous
46 process, further enhancing competitiveness.

Major GWP Implementation Tasks
Classification Major Tasks
Fostering 1. Equitable compensation based on performance & capability

Competent
Employees 2. Growth opportunity expansion & powerful training course
3. Free environment allowing creative ideas & acknowledging diversity

Providing
Enjoyment for
4. Right working environment enabling employees to focus on their work
Competent
Employees
5. Work & Life Balance
6. Strengthen pride as an employee of kt that is leading the wired/wireless

convergence
Gathering
Competent 7. Strengthen the leadership position in the hiring market
Employees
8. Create an image as a citizen’s company
To create kt’s own GWP that allows for competent employees to grow, competent employees
to enjoy work, and competent employees to gather, a survey was carried out on all employees
in February 2011 to confirm how the employees view the company and to prioritize required
improvements. Out of the total employee pool, 51% responded. Based on the response, kt initiated
a company-wide effort by holding a workshop by CIC to complement certain areas considered
deficient, forming a GWP Implementation Group, and selecting Champion departments by
implementation task. Considering the needs that are diverse as the size of the company, kt plans
to create a GWP that takes into consideration characteristics of each individual, and that is focused
on bottom-up voluntary actions rather than top-down.
GWP Programs Taking into Consideration the Employees

kt holds an olleh Family Day, which is a program that not only takes into consideration the
employees, but also their families. The olleh Family Day is held by organization and region. Diverse
programs are provided allowing family members to select based on their preference. Programs
include cake baking, movie viewing, cultural lectures and sports viewing.
At times, each division head will make irregular visits with a stress reduction kit to departments
olleh Family Day event
that are quite at work. The kit is a present box comprised of vitamins, board games, herb tea, and
chocolate. The present boxes significantly help in relieving the employee’s fatigue and stress. It
also improves employee-management relations.
GWP Model
Heart-Opened Commun
/Ear/ icat
u th i on
Mo
Cons
vity/ idera
Creati Credib tion/
Focus ility
Pr
po wth
y
nit
ide
loyee Enjoying
etent Emp
Op Gro
rtu
Work Stress reduction kit

Comp
ing Gat Co
ow he
mp g at t
r
eG
ete he Wo
rin
e
Environ
ploy
Growth &
nt E
nge
Great Work Place

Social t
mplo place
Competent Em
Challe
yee
men
“Warm Worksite where

rk
Everyone Can Walk Together & Dream Together”
GWP Slogan 3 Major Directives 6 Major Drivers Communication Principle
47
Great Work Place
7,008
No. of employees selected from
Human Resource Development Talent Market program
Safety and Health
Human Rights
Fair Human Management
kt made innovations to its HR policy focused on roles & responsibilities to foster a competitive
culture based on good intentions, and equitable HR policies. Detailed principles are stipulated
in kt’s human management regulations to guarantee equitable opportunities and challenges
for workers and to execute justifiable compensations. kt holds an open selection process when
hiring employees and does not in any way discriminate in terms of sex & educational background.
In addition, fairness and transparency are being secured in human management policies as it
relates to hiring, assigning, transferring, promoting, evaluating and compensating.
Talent Market System Process Human Management Direction
Classification Stipulated context

Required
Department Individual HR • Fair competitive hiring principle, open selection process
Fairness in Hiring, • Hiring rights have been entrusted to each sector
Assigning, • Select & manage an personnel evaluation company for fair hiring
Transferring • Adopt a talent market system in accordance the 2009 competitive principles
Need for
Personnel • Guarantee fairness & transparency in assigning employees
• Promotion system abolished by agreement between labor & management in 2010

Decision on Fairness in Promoting
Notice for • Adopt an ‘Employee Growth Mileage System’ to provide employees incentive for growth
whether to
Personnel participate in
Selection (Hiring) the public
selection process • Transparently disclose evaluation standards, processes and results
Fairness in Evaluating, • Operate a multi-faceted evaluation, competency evaluation and post-audit system
NO Compensating • Compensation based on sex & educational background abolished: fair compensation
based on performance
Pre-registration
for Desired
Department Employee Growth Mileage System
Selection With the abolishment of the promotion & rank system, kt adopted the Employee Growth Mileage
Select from Completed,
YES
Personnel
System starting in 2010 to secure fairness in evaluation based on performance. This system takes
Application Pool
Assigned into consideration the individual’s performance and expertise as a priority. However, factors
such as level of cooperation, creativity, contribution to the organization and leadership are
also reflected in the evaluation. This contributes to the spread of a competitive culture based
on goodwill. Whatever the title, once a set mileage is satisfied, the employee can be granted a
position. Performance and competency accumulated points (mileage) are used as standards to
assigning positions. In addition, when selecting a managerial level position, someone with onsite
experience is given priority.
Talent Market System

Compensation Based on Performance
Starting in January 2010, the human management system based on salary class and seniority
Public No. of
Application No. of
Category Selection
(cases) Applicants
Selected rank was abolished and a system focused on performance was adopted. The evaluation criteria is
(cases) Employees
Irregu-
divided into A, B, C+, C, D & F grade levels. The number of employees at C+/C grade level (average
2,441 10,026 2,884 1,207
lar T/M salary level) is maintained at a 50% level. The performance compensation gap for employees was
Regular
T/M
5,433 15,094 5,689 5,801 generally at 60% in the past. However, this has changed to 100%. For employees with a position,
Total 7,874 25,120 8,573 7,008 the gap could range up to 210%. All employees and executives hand in their annual target plans
Note) Based on figures from July 2009 to June 2010 every January for performance management review. Employees are evaluated 1 to 2 times a
year on an interim basis, whereas executive are evaluated once a year. The final performance
evaluation is concluded at the end of the year based on the individual’s original targets and plans.
The results are reflected in the competency development principles and compensation.
48
10
No. of Smart Working
Center

kt carries out diverse employee welfare and benefit programs. The company has adopted a welfare
policy where individuals can freely select based on their needs. Some of the benefits include tuition
support for children from childhood to college, loan support to help stabilize living conditions,
and operations of recreational facilities. Medical examinations, corporate group insurance, medical
expenses and family event expenses have been expanded to cover the employees’ direct family
and wife’s direct family member depending on the event. We have operated the web-based cyber
welfare center (b4u.kt.co.kr) to serve employees’ needs since 2002.
Family Friendly Programs

kt has initiated the Smart Working Program where employees can perform their work when and
wherever possible. In addition, to encourage child birth, diverse programs are being initiated.
They include providing congratulatory financial gifts to families with many children to encourage
birth, allowing pre- and post birth vacations, maternity leaves, infertility birth leaves and wife birth
leaves. Upbringing centers and nurse feeding facilities are also part of the initiatives.
Outplacement Program Selected as Family-friendly Company by the

Ministry of Gender Equality & Family
kt operates a program to help employees transfer to other occupations. Annually, 550 employees (Outstanding Family Friendly Certificate
Award Ceremony)
are beneficiaries to this program. The program offers diverse opportunities such as workshops
comprised of lectures covering change management & financial design (2 days), 1:1 financial
consulting for start-ups (5 days), and reemployment training (4 days). Start-up and reemployment
consulting services are regularly provided. In addition, through a partnership agreement with the
SMBA, Gyeonggi Small & Medium Business Center, Labor-Management Joint Reemployment Support
Center, Graduate School of Industrial & Entrepreneurial Management at Chung-Ang University, Large
& Small Industries Cooperation Foundation, and Korea Franchise Association, kt provides support.
Through its kt Life Plan System (www.ktlifeplan.com), kt helps arrange employment to affiliate
companies or distribution networks. Other programs include the entrepreneur implementation
project program (2 weeks), entrepreneurship instruction presentation, opportunities to experience
entrepreneurship through partnership franchise companies, books detailing the 100 successful Career Design System
entrepreneurs and support to help acquire certificates.
Smart Working
To enable employees to be flexible in selecting their work location, kt became the first domestic
company that adopted ‘Smart Working.’ In September 2010, it opened Smart Working Center
in Bundang, equipped with high-definition video conferencing facilities and individual work
space. Currently, ten centers are in operation and more centers will be established after analyzing
employees’ residential locations and by collecting their opinions.
Refresh Temporary Rest Policy Smart Working Center in Bundang
This policy is provided to excellently performing employees to help them self-develop and re-
charge. As a new policy adopted in 2009, it was implemented after basic operational directions
were established in 2010. 350 employees are selected company-wide to benefit from this policy.
Selections are made in March and September.
49
Great Work Place
88 hours
Training hours per employee
Safety and Health
Human Rights
Ideal Employee
kt’s vision of an ideal employee can be summarized as “Top Talent in ACTION.” We promote
professionals who have passion and executive energy to accomplish challenging goals based on
mutual cooperation, trustworthiness, and innovative thinking from a customer’s perspective. Thus
our HR system aims to support our employees to internalize the three core values - customer-
oriented, trustworthiness and passion.
“ACTION” education for employees Top Talent in ACTION

Ideal Passionate and results-oriented professionals, the top in their respective fields,
Employee think innovatively from the customer’s perspective and work on the basis of
cooperation and trust to achieve challenging targets without fail.
Customer Trust
Orienta- Passion
worthiness
tion
Competencies
Employees should adhere Employees should act
Employees should approach to ethical principles, respect responsibly, as owners, and
problems with flexibility and others’ positions and take accept the corporate vision and
new perceptions to create the leading role in fostering values wholeheartedly, thus
customer value. organizational harmony and generating excellent results for
olleh innovation school mutual consideration. the company.
Training Hours
per Employee (Unit: hours)
Development of Employee Competencies
We have established a mid- to long-term HRD master plan to foster experts who can achieve
sustainable growth and generate value for customers. In addition, we have established a
131 competency-based HRD system. The system allows employees to assess their competency
levels and improve step-by-step, thereby helping them to realize their full potential. A regular
learning system is in place that accommodates individual skill levels, and a multi-channel learning
88
79 environment (m-Learning through smartphone) is also in place. All employees are required to
take part in certain training programs, while leadership training, job-related training and online
training courses are also offered, MBA programs or other master and doctorate programs at
domestic or foreign universities are provided.
Training System
Program Course Self-development

2008 2009 2010
Core Values “ACTION,” olleh innovation school
“Self-development notes”?
Training for executives and team leaders, courses for is an annual plan, made by each
Leadership people newly hired or newly promoted employee to improve his or her
competencies. Employees use
Commonly- Basic training for the newly hired, courses for key work
required Training skills: 12 courses covering 5 different areas an online HR system to submit
competency levels (overall as well
Basic intermediate and expert level courses for specific as job-specific) with respect to
Specialized Job work areas, External training programs for executives and their current position. They verify
Skills / External team leaders, Time-based domestic training scheme,
Training Day-based domestic training scheme, overseas MBA how they are improving. Regarding
courses individual growth targets and self-
cultivation activities, coaching and
e-Learning: Kate, an HRD Center
Online & Other Outside link: ktedu.kt.com feedback are provided. Annually 60
Programs Language Academy: cyber.yhmsisa.com/edukt hours are given to each employees.
(open to employees’ family members)
Training for Leadership course for managers, Competency course for hand-on workers
Group Companies
50
Education Overview (Cumulative Total for Participants)
2008 2009 2010

Category
Courses Participants Courses Participants Courses Participants
Classroom education 575 41,567 456 24,072 502 35,286
e-Learning 253 177,998 223 116,758 161 86,010
Aptitude 52 148,680 99 179,550 196 344,306
Book reading 100 4,246 90 2,877 47 5,946
Language 364 8,614 525 8,903 330 6,524
Fostering Competent Employees

To foster future leaders, kt classifies the pool into three groups - manager group consisting of
competent employees above team manager level, olleh class core competent group with high
expectations to develop into managers, and the domestic/overseas degree group dispatched
to educational institutions. kt provides support to competent employees to study and train in
domestic & overseas masters, doctorate or MBA programs to foster core talent. This is an excellent
opportunity for individuals to enhance competency and provide incentives for growth.
Leadership training course for managers
Securing Future IT Competencies

Training & education on new business models (BM) are implemented to secure future
competencies in the IT sector. Training is held for new businesses that kt is initiating. As of April
2011, 478 employees participated in 14 new business planning competency enhancement
courses. Going forward, kt will develop customized training programs and redesign existing
programs, while creating a human resource pool for development and fostering.
Knowledge Management
kt operates an advanced knowledge management system (KMS) using the latest information
technologies, thereby boosting work efficiency and promoting a more creative organizational
culture. Collected information is classified and registered in the KMS database. The information
registered in the system must be assessed and inspected by designated “Knowledge Masters”
before it can be qualified for use. Also, ‘kt idea wiki’ was launched to search for ideas. It is acting as
a year-round idea suggestion window. Some of the events of ‘kt idea wiki’ are the ‘Big Question,’
where a major question asked once every month by senior management can be answered freely
by any employee or executive, the ‘wiki Contest,’ where kt’s best ideas are selected, and the ‘wiki
Contest Exhibit,’ which acts as a doorway to diverse idea contests are held daily.
Knowledge Management Bulletin Board

Activities and
Category Details performances in 2010
“Tell Me, Please” All employees can ask their questions freely, using the 2,867 questions and
bulletin board same format as the “Naver Knowledge In” website 1,637,779 hits
A participatory knowledge-sharing bulletin board
Treasure Chest 502 postings
similar to Wikipedia
Knowledge Sharing Experts in the related area assess posted ideas and knowledge
Place 4,333 postings
and make necessary corrections.
Idea Wiki New ideas or suggestions regarding work for practical use 74,641 postings
Knowledge and materials shared to revitalize cafés
kt Cafe 522 cafes under operation
by job category
kt Blog Knowhow shared at individual blogs 6,066 postings
51
Great Work Place
78.70
Ratio of employees joining
%
labor union
Safety and Health
Human Rights
Labor Union
kt employees are free to organize their own labor union and other representative bodies. The
collective agreement stipulates that new hires are automatically members of the labor union. As
of January 2011, 78.70% of the kt employees were registered union members.
New and Creative Labor-Management Culture

kt seeks “win-win” labor-management relations. kt announced the “olleh kt Constructive New
Labor-Management Culture Joint Declaration” in March 2010 to gain mutual benefits - generating
sustained corporate value, maintaining amicable labor relations, providing a satisfying work
environment, fulfilling all corporate social responsibilities, and creating new work opportunities.
To expand the creative new labor-management culture, diverse activities are carried out. The
activities include HOST, the labor unions Share Movement for employees and alienated classes,
olleh kt Constructive New e-Learning programs for employee’s children, joint labor-management YOUTH scholarship
Labor-Management Culture Joint Declaration
programs, and free education for middle-school students from alienated classes. Having overcome
the economic crisis through 11 years of successful negotiations with no disputes since 2001
and two years (2008 / 2009) of negotiations based on concessions, kt’s efforts were recognized
through the Presidential Labor-Management Culture Grand Prize.
Grievances Received and Grievance Handling

Handled (Unit: cases, %)
Grievances are received through various means such as phones, letters, emails and website. By
Received Rate of responses focusing on preventive measures to solve grievances, the company has seen the number of
Handled
grievances decrease in the past 3 years. kt set up the grievance processing kt119 center starting
in January 2011 where an exclusive employee will process the grievances in real time. This makes
100 100
95 grievance requests and consultations more convenient. For those not wanting to expose their
identity, an anonymous bulletin board was established. In addition, a grievance consultation
19 center has been established at kt’s headquarters and at 354 of its business sites. Grievances that
12 cannot be solved easily can be referred to the Grievance Processing Committee comprised of
18 11
12 labor-management representatives.
11
Grievance Handling Process
Grievance Generated Receipt of Grievance Hold Grievance Processing Committee & Process Notification of Results
2008 2009 2010
kt119 kt119
Center Central Center
Impossible to Grievance Processing

Process Committee
Website Division
Impossible to Confirm &
Grievance email Process (Regional HQ)
Satisfaction
Generated phone Grievance Processing Appraisal
FAX Onsite Committee
Department
Grievance Processing
Committee
Employee Grievance Committee Employee
52
0.22
Accident rate
%
To promote a corporate safety culture, each business site establishes and implements an industrial
safety & health plan and actively takes measures to prevent accidents. Representatives from both
labor and management, as well as headquarters and other worksites are working in concert for
successful implementation of these activities.
Industrial Accident Rate for

Safety-first Corporate Culture Past Three Years
kt is conducting a wide range of activities to make safety an integral part of the corporate culture.
Regular safety and health training courses are provided online (two hours per month, at least 20 kt Telecom industry Korea
hours for staff in charge) “Safety message” alerts are texted to employees on the job in advance
of inclement weather. In addition to three-minute safety meetings held just before onsite duties,
0.71 0.7 0.69
theme events are held on the fourth day (Safety Inspection Day) of every month, promoting
0.56 0.45 0.51
safety at work as well as helping to instill the “safety-first” mindset. Excellent departments and
accident-free workplaces are awarded at the Safety Leader Seminar held in the second quarter. 0.19 0.22
0.16
Joint Labor-Management Disaster Prevention Activities

Through a joint effort between labor and management, a nationwide tour is carried out to provide 2008 2009 2010
special safety training (regulations, cases, etc.) to onsite team leaders and honorary supervisors.
A 2 day seminar is held for about 300 safety related employees during the second quarter every
year. To establish a safe corporate culture and eliminate disasters, special safety training is held for Annual Accident Rate at kt
major disasters. Through indirect experience of disaster cases, employees are made aware of the
dangers and consequences of disasters. Injuries Fatalities
75 72
Promoting Employee Health & Well-being
Through an anonymous grievance system, employees are able to manage their stress. Prominent 56
outside lecturers are invited once every quarter to lecture on health management. In addition, a
general medical examination is held for employees and their spouse once every year. A differentiated
well-being temporary leave system has been adopted. At the same time, a welfare beneficiary 2 1
0
management system (work nursery facilities, stable living fund support, etc.) has been established to
2008 2009 2010
create a welfare life. To enable employees to enjoy family life, every Wednesday has been designated
as Family Day. Through a professional institution in 2011, stress measurement of all the employees
was taken. The results will be used to establish a customized stress management policy.
Fostering a Healthy & Safe Work Environment

To improve the work environment, for any new or expanded building, a cultural space, book café,
meditation room and physical exercise room is built. In addition, hazardous factor (closed space,
manhole) measurements are taken on all sites every year by a professional institution.
Industrial Safety Support for Group Companies

kt is trying to create a group safety corporate culture and establish a safe workplace. By
implementing diverse measures and activities such as enhancing work competencies for
employees at group companies, initiating industrial disaster preventive activities in group
Outstanding Safety Photograph
companies, and providing continuous and systematic diverse disaster preventive contents, kt is Contest Exhibition Tour
contributing to the maintenance of group companies’ employee’s safety and health.
53
Great Work Place
14.83
Proportion of female
%
Human Resource Development employees
Safety and Health
Human Rights
kt forbids discrimination by reason of regionalism, educational background, gender, religion, and

physical impairments. By changing the customer service hiring criteria to above high school level in
2010, kt is providing competent people with opportunities to realize their dreams. While respecting
the principle of equal opportunities for both sexes and work-life balance, kt also guarantees
protection of minors and motherhood. We provide support to female employees so that they
can work in a comfortable work environment by prohibiting pregnant employees from working
overtime and being assigned to physically-challenging work; allowing one day special leave per
month for women (without pay); and giving a 90-day vacation before and after giving birth.
In addition, we forbid child labor and forced labor. Furthermore, we have in place systematic
support to prevent sexual harassment, including online training, awareness training, and
preventive guidelines. In recruiting, compensation, and promotion, kt does not discriminate
employees and applicants by their gender. To enable women employees to fully display their
potential, kt has established 3 policy directions. They include the policy allowing work and family
to coexist, the policy eliminating discrimination in hiring, promotions and compensation, and
finally, the policy to foster women leadership.
As such, women are provided childbirth congratulatory monetary gifts and pre-school education
tuition support. In case of maternity leave, measures are taken so that women can easily return
to work by enabling them to complete e-Learning course during their leave period. A women
leadership program is managed to help foster middle-management women leaders. As of the
end of 2010, there were 109 women managers, comprising 2.4% of the total female workforce.
Sexual Harassment Related Grievance
Year No. of participants Remark
2008 35,843
2009 35,855 No grievance during the last three years
2010 30,762
Employees by Gender Status of Female Employees
Male Female Total female employees

No. of female employees with a managerial post or higher
Management Briefing Session

5,281 4,621
30,245 26,802 4,603
26,534
5,281 4,603 4,621
306
(14.86%) (14.66%) (14.83%)
109
115
2008 2009 2010 2008 2009 2010
54
75 points
Employee satisfaction
index
Companywide management briefing sessions are provided in two forms. The first is the quarterly
central management briefing session where labor-management committee members attend.
The second is the semi-annual briefing for all employees provided through internal broadcasting.
In addition, a joint labor-management sponsored division management briefing is held annually
or semi-annually for all division employees. In case of major management issues, management
briefings are held regularly by inviting division heads. Major corporate issues are decided through
a thorough discussion process between labor and management. Discussion sessions include
the quarterly Labor-Management Council (Starting in 2011, council holds sessions twice every
quarter) and the Labor-Management Discussion Roundtable, which is held once annually. Overall
management issues are discussed through a permanent organization, the Labor-Management
Coexistent Council, the results of which are reflected in decision making.
olleh Meeting
The objective of the olleh meeting is to share and communicate important messages from the
CEO and company-wide issues. The meeting is held once a month at the department level, and
issues relating to the company and department are discussed. To help vitalize the olleh meet-
ing, departments are encouraged to voluntarily submit implementation details of the meeting.
Awards are provided to outstanding department meetings once a month.
Employee Survey to Improve Labor-Management Relations

kt collects employee needs and suggestions to help improve labor-management relations through
surveys targeted towards the diverse pool of employees. The results of the survey are reflected in
policy decisions after thorough discussions between labor and management.
Employee
Employee Satisfaction Level Satisfaction Index (Unit: points, %)
After the merger with ktf, kt has been pursuing the GWP policy to enhance employee satisfaction
Index Participation rate
and improve efficiencies. As part of its effort, employ surveys, unlike in the past, are now carried
out by outside professional organizations based on global standards. As such, the 2010 employee 42 52
satisfaction survey results cannot be directly compared to that of previous years. The new surveys 28
are comprised of 58 items that include work conditions, employees’ health & safety, compensation &
welfare, and corporate identity. Based on the 2010 survey results, kt’s employee satisfaction level was 79 79
75
higher than the average satisfaction level of other Asian or global companies in the industry.
Two-way Communications with Management

kt also places a great effort in establishing and managing a two-way communications channel, 2008 2009 2010
enabling kt’s management to have direct access to the opinions and difficulties faced by employees,
and if required, to have the CEO’s management philosophy and corporate vision accurately
communicated. In June 2011, senior managers voluntarily manage an online discussion room, ‘I Want
to Know’ where opinions on major issues are gathered, and issues of curiosity, baseless rumors and
dissatisfied issues are dealt with. Besides, all senior managers are required to make site-tours quarterly
to provide a management brief, and experience first-hand VOCs, the opening of an account and A/S
on a semi-annual basis. Through these activities, kt is promoting understanding and communications
between senior management and employees.
55
In 2010, rather than just the coexistent concept, kt proposed an aggressive new mutual growth paradigm
where kt and its suppliers grow together. To eliminate the root cause of complaints by small & medium
enterprises, a ‘3 Don’t Policy’ was announced. The Mutual Growth Center, IT CEO Forum and Information
Sharing Consultative Groups brought vitality to communications with suppliers. kt is also securing
transparency through purchase policy innovations and fair trade that is self-regulated. The company also
provides support for supply companies to establish sustainability management system.

External (0~100%)
100 A Partnering for Growth / Infrastructure and Financial Support

A Ⓑ Promoting Mutual Growth / Building Green Ecosystem
80
Ⓒ Innovation of Purchasing System / Fair Trade
60 Ⓓ Supplier Communication
Ⓓ
40
ⒸⒷ
20
20 40 60 80 100
Internal (0~100%)
Major Performance
Category 2008 2009 2010
Amount of Cash Settlements (KRW 100 million) 21,186 17,562 29,665
Amount of Financial Assistance (KRW 100 million) 2,298 2,961 3,103
Free Training for Employees of Suppliers (persons) 15,389 11,520 12,688
• Presidential Award in the category of SME support (Small & Medium Business Administration /
Korea Federation of Small and Medium Business)
56
The industrial eco-system is affecting corporate
competitiveness more and more. Through actual
and unprecedented support to suppliers, kt
has achieved significant results with its mutual
growth policy. In the future, to make sure one
supplier continues to disseminate sustainability
management to other suppliers, a cooperative
system must be established.
Sun-Kil Kim
Strategic Purchasing Department,
Purchasing Strategy Office
Violation of Fair
Trade Practice
Amount of
Cash Settlements
(KRW 100 million)
Free Training for

Employees of Suppliers
(persons)
57
Dream with Suppliers
Three
Partnering for Growth
Infrastructure and Financial Support
Promoting Mutual Growth
Don’t
Building Green Ecosystem Declaration of “Partnering
Innovation of Purchasing System
for Growth”
Fair Trade
Supplier Communication
The Declaration of Three Don’t Policy to

Three Don’t Policy
Promote Partnership for Growth
Since June 2009, kt has strengthened win-win ties with its partner companies. For example, the
kt’s Declaration of Three Don’t Policy
company has implemented measures to prevent the abuse of the lowest bidding scheme, while
We will not waste SME’s resources
strengthening the basis for SME self-sufficiency, paying in cash, and expanding financial support
We will not misappropriate SME’s ideas of technology
development for the SMEs. In addition, we have supported software application and content developers
We will not create an environment of competing through the “Open-Eco” policy. On July 12, 2010, kt proposed a new paradigm for mutual growth
with SMEs
with suppliers by declaring the “Three Don’t Policy” which aims at alleviating SMEs’ concerns
when they cooperate with big companies.
Demand Forecast
Our SME partners previously had trouble managing their production and inventories because
they were unable to accurately predict kt’s future demand. Additional resources of our suppliers
may be wasted when we do not commercialize newly developed products. However, our new
demand forecast program helps us improve our joint development scheme. Our new program
calls for us to announce, at the beginning of each year, our projected annual procurement
requirement based on current market and technology trends, as well as our short- to mid-term
IT CEO Forum Homepage (www.itceo.org) business forecasts. We began the program by disclosing our first round of demand forecasts in
where demand forecast is disclosed
July 2010, followed by periodic updates as the business situation changed. Under this program,
we will disclose our development plans in advance and give appropriate compensation to
partner firms in case the projects they are involved in are not commercialized, thus addressing
problems mentioned above.
Non-Disclosure Agreement
We conclude non-disclosure agreements (NDAs) with our partner firms. The NDA helps improve
the transparency of our cooperative arrangements with suppliers while preventing sensitive
information from being leaked to third parties. We will severely punish employees who violate
the agreement.
NDA (Non-Disclosure Agreement)
Business
development
Follow-up
processes
Research & customized
development
for each
SME’s suggestions Quick Review In-depth review project
Equipment
Single channel by a third party
procurement
Compulsory NDA conclusion with Objective and Quick review to prevent

pre-registration SMEs transparent review ideas from being discarded
Protection of SME’s ideas / Pun-

Compulsory registration of Operation of Review Board by Review and adoption of ideas
ishment of employees who leak
SME’s proposals and develop- a third party / prevention of within two months / custom-
relevant information of suppliers
ment cooperation before undue influence by established ized follow-up processes for
(including existing partners) to
project starts interest adopted proposals
competitors
58
KRW 2,966.5 billion
Cash settlement amount
Benefit-sharing Arrangement
In 2006, kt adopted the benefit-sharing arrangement where both kt and partner firms jointly
develop equipment and services. Six projects were carried out in 2008, seven in 2009 and three
in 2010. kt provides suppliers with training and consulting (for Master Black Belt) on Six Sigma.
We also provide environmental testing and measuring devices to help them develop equipment.
Starting in September 2009, improvements were made to the benefit-sharing arrangement.
Based on the improvements, if successful in completing the specification optimizing task for
equipment cost reductions, 50% of the cost reduction amount will be reflected in the purchase
price. In addition, benefit-sharing quantity will increase from the previous 20% maximum to 30%
maximum while the benefit-sharing term will be extended from a year to 2 years.
Support for Telecom Infrastructure and Testing Facilities

In order to alleviate R&D burdens on our suppliers and nurture SMEs and venture companies,
we have established an independent network infrastructure such as the Comprehensive Model
Center and Econovation Center, and provided an environment of developing and testing wired/
wireless telecommunication service and Internet service to our suppliers. In 2010, a total of 400
partners (206 partners in 2009) were benefited under this support scheme; 55 times for servers,
151,444 for terminals, and 62 times for measuring devices.
Free Training to Partner Companies

kt provides free training programs to employees of SME partners. In 2010, a total of 12,688 trainees
(11,520 in 2009) participated in 73 courses (94 in 2009), covering equipment and service operation,
customer relations, resource management, and IT construction. Classroom courses are provided at
the kt HRD Center and each regional field-training center, and textbooks, accommodations and meals
are all provided free. These programs have earned favorable responses from our partner firms.
Financial Support for Partner Companies Financial Support (Unit: KRW 100 million)
In order to help SMEs secure liquidity and operating capital and to enhance management stability,
Category 2009 2010
kt operates diverse financial assistance programs. We raise a fund worth KRW300 billion under kt
17,562 29,665
Capital to provide credit loans to SMEs. Moreover, we have stopped settling payments in promissory Cash settlement (45,232 (54,263
amount contracts) contracts)
notes and have been providing cash settlements for deliveries by SME partners since 2006, regardless
Financial support 2,961 (553 3,103(528
of the contract amount. We also concluded agreements with financial institutions so that partner for suppliers companies) companies)
companies can receive loans at lower interest rates according to their performance.
Support for Overseas Expansion of Exemplary Suppliers

We help top-performing partner companies to make inroads into overseas countries through joint
development of new businesses. In 2009, we pursued 15 global IT projects with twelve exemplary
suppliers, generating KRW26.4 billion in sales. In 2010, we cooperated with 23 companies for 13
joint projects of KRW79.0 billion. We will continue to strengthen relationships with suppliers by
carrying out joint business development and increase orders from overseas countries.
Transfer of Patent Usage Rights Signing an MOU between kt and KOTRA

to help SMEs make inroads into overseas
We grant SMEs the rights to use our key patents and R&D findings at lower rates. We will also countries
continue to sell our rights to unused patents to SMEs.
59
12,688
persons
Building Green Ecosystem
Free training for employees of
our suppliers
Fair Trade
Efforts to Expand Mutual Growth

Points Added in Case of
Induce Cash Settlement with 2nd Suppliers
Cash Settlement
Starting in 2011, kt is inducing 1st suppliers to cash settle with 2nd suppliers. When carrying out
Over 30% Over 50% Over 70% Over 90%
annual evaluations for 1st suppliers, depending on the ratio of cash settlements, a maximum
0.3 points 0.5 points 1.0 points 2.0 points of 1.5 points can be added to the evaluation. 1.5 points can actually affect the ranking within
a similar S/G. To verify whether cash settlements have been made, kt requires 2nd suppliers to
submit cash settlement confirmation document. As such, kt verifies cash settlements directly
with the 2nd suppliers.
Management of Cost Delivered Goods

As of October 2010, kt is managing delivery goods costs so that any increases in unit cost of the
delivered goods to kt is also reflected in the 2nd vendor supplier’s unit cost to the 1st vendor supplier.
When a request is made by the 1st vendor supplier to adjust unit cost, the 1st vendor supplier
must submit transaction related documents with the 2nd vendor supplier. Initially, 1st suppliers
were only required to submit adjustment details (confirmation documents detailing reasons for the
increase) to the contract amount. However, now 1st suppliers are required to submit transaction
details with 2nd suppliers in the bid notice and goods (construction, services) contract. The results
of cost adjustments with 2nd suppliers should also be submitted to kt.
Major Results of the Mutual
Growth Program in 2010 Providing Financial Support to 2nd Suppliers
Starting in October 2010, kt provides financial support to 2nd suppliers through kt Capital. Utilizing
2010
New product
the kt Capital Network Loan of KRW300 billion, credit loans are being provided to the 2nd suppliers.
development 6 tasks
under condition KRW1,680 million
The loans are provided through a recommendation of the 1st supplier. Right after initiating this
to purchase policy, approximately KRW800 million was provided in loans to two 2nd suppliers.
Measuring equipment
/ Test-bed: 41 times
Support
infrastructure
1st Econovation: 4,128 times (individual) Applying the Mutual Growth Program to 2nd Suppliers
/ terminals 2,350 times
facilities
2nd Econovation: 6,223 times (359 companies) Starting in October 2010, the mutual growth program is also being applied to 2nd suppliers.
/ terminals 63,340 times / server 55 times
The support amount is 50% of the required amount with a limit of KRW4 million per company.
Benefit-sharing Received 23 tasks in 1st and 2nd round
performance 3 development tasks, KRW2,690 million in
Currently, kt is providing financial support to five 2nd suppliers by subsidizing quality, environment
management delivered goods
consulting & certification expenses. Free training is also provided through the human resource
Support with development center and the wireless network headquarters. 2nd suppliers are also able to use
quality/
environment 17 companies various facilities including test-beds, measuring equipment, integrated model rooms, econovation
consulting & KRW58,200,000
in acquiring center, etc. In 2010, three more 2nd suppliers were added to the Vendor Coaching Program, which
certificates
was initiated in 2008, bringing the total number of companies to nine. Starting in November 2010,
Completed coaching of
Vendor Coaching
nine 2nd suppliers kt is encouraging 1st and 2nd suppliers to conclude an agreement for mutual growth. The contents
Technology transfer:
Patent usage 6 cases 10 companies of the agreement include fair subcontracting transactions, cash settlement with 2nd suppliers,
approval & Technology utilization contract: 5 cases
technology transfer Technology 8 cases 7 companies
and competency enhancement support. The agreement is based on the agreement that kt has
Licensing: 2 cases 6 companies concluded with 454 1st suppliers on July 8, 2010.
On/offline free
73 courses 12,688 employees
training support
60
Econovation
kt is actively implementing its ‘Econovation’ activities to achieve mutual growth with smart
application developers. The company provided to developers its‘olleh SDK (Software Development
Kit)’ which is an application development solution that the developer can use to develop operating
system applications with one execution code. kt also provides support high quality applications
through application development contests. In addition, a developer’s camp is held where
developers can receive technological support and consulting to help in developing applications.
Seminars are also held every month to provide developers with the opportunity to share and Application development contest
“Econovation Second Fair”
discuss information. kt is providing support to mobile application developers to help expand
into the overseas market to enable the developers to expand profit generation opportunities
through kt’s ‘Global Frontier Project.’ Actual support in entering the global market is provided,
which includes specialized application development training, translations, commercialization
test-beds, and marketing. kt, NTT Docomo and China Mobile concluded a strategic agreement
to establish an application store, OASIS (One Asia Super Inter-Store) through which a total of 650
million people in Asia can use applications.
Mutual Growth Expansion Plans

In 2011, kt plans to increase the loan support size to KRW340 billion to help provide financial
support to small & medium enterprises. In addition, the cash settlement policy towards SMEs
will be maintained going forward. In the future, kt plans to transfer ‘kt Naratgeul’ patent to
4 companies and 16 other patents to 24 companies. In addition, to provide support to the
technological environment of suppliers, kt will provide measuring equipment and test-beds to
help in the development of IT terminals & equipment. For wireless suppliers, network/PC/terminal
Supplier-kt Cooperative Council
test space will be provided. For the ‘new product development under the condition to purchase
project’ targeted towards potential companies, kt and the Small & Medium Business Association
plans to jointly provide KRW1,680 million in support for six tasks to be completed by these high
potential companies. To continuously provide free training & consulting support so that SMEs
can enhance their business competencies, kt plans to provide training and quality management
consulting for 1st and 2nd suppliers. The company opened a mutual growth community within
its ‘Human Resource Development Center’ in November 2010 to provide training support. In
2011, a cooperative council will be initiated to expand the scope of on/offline training and to
provide training support.
kt will continuously provide support to the suppliers through diverse purchasing policies. Continuous
improvements will be made to kt’s purchasing policy. Policies such as the implementation of the demand
forecast policy and the policy to reflect inflation factors in the purchase price will be maintained along
with the multiple price policy, bid price limitations, overall evaluation bid policy, and benefit-sharing
policies. In 2011, kt will focus its effort on stably executing its improved purchase policy and expand its
mutual growth performance. At the same time, the company will encourage 2nd suppliers to join in
mutual growth and will further expand mutual growth to other areas.
2011 Target & KPI
Implementation
Task KPI 2010 2011 Target
tasks
1Q 2Q 3Q 4Q Total
Mutual growth Supplier 77.4
with suppliers satisfaction level points
- 82points - 82points 82points
Strengthen 2nd supplier

mutual coexistent 6 10 10 20
- -
cooperation with program companies companies companies companies
2nd suppliers implementation
61
16 companies
No. of suppliers that received kt’s
Building Green Ecosystem support for ISO 14001
Fair Trade
Development of Green Technologies

kt is initiating diverse cooperative activities with suppliers such as encouraging the development
of green technologies by suppliers. To this end, kt established various guidelines related to green
IT and applied it to its purchase process.
Major Guidelines to Vitalizing the Development Green Technologies
Classification Details Introduction

Green Growth Green IT Forum Establish technical standards for temperature, humidity, surge,
Environment
drop shock, vibration (internal), electronic wave (tolerance, trouble
request for
prevention, physical protection), hazardous material, standby power, Aug. 2007
telecommunications
energy efficiency, noise, & surface temperature, and apply it to kt
equipment
purchase items.
Green IT As a result of kt’s green implementation to all sectors, CO2

Apr. 2009
implementation plan emissions to be reduced 20% by 2013 compared to that of 2005.
Priority is to be given to low carbon equipment when purchasing

new equipment. Selection of 4 core green technologies is to be
Green purchase initiated which will be applied steadily by 2013.
Jun. 2009
plan Improve energy efficiency of the communications infrastructure
by replacing with low carbon, eco-friendly equipment
(2009: 5,000 tons, 2010: 6,000 tons)
Green network
By achieving a green network, electric energy will be reduced
implementation Oct. 2009
by 18% compared to that of 2008 in 2013
strategy
Support for Past Two Years Support for Suppliers’ ISO 14001 Certification
To strengthen kt’s overall supply eco-system through continuous enhancement of environmental
Category 2009 2010
management competencies of suppliers, kt provides environment management system (ISO
No. of Four
16 companies
suppliers companies 14001) consulting and systematic certification acquisition support to 1st and 2nd suppliers.
including
that kt including Dae
supported FRTEK In order to ensure a proper environmental and quality management system for our partner
Han Polymer
Support KRW11.97 KRW54.25 companies, kt encourages them to be certified with TL9000 (quality management system) / ISO
amount million million 14001 (environmental management system) by providing them financial assistance – kt covers
50% of the certificate related expenses. During the past three years from 2008 to 2010, a total of
46 partner companies (20 companies in 2008, nine in 2009, and 17 in 2010) were beneficiaries.
This support promotes the standardization of their quality management processes, raises
their employees’ awareness of environmental issues, and improves their overall productivity.
At the same time, preference will be given to suppliers that have established the environmental
management system (ISO 14001) when selecting the vendor and evaluating quality. Through
strict post-management activities after providing cost support, kt will at the end continuously
enhance its overall sustainability management standards.
Support for Suppliers’ ISO 14001 Certification
426 (147 for materials and equipment,

No. of kt’s suppliers (A) 279 for construction)
No. of suppliers that kt supported in 2010 (B) 16
B/A 3.8%
Program ISO 14001 Certification
62
KRW 176.3 billion
Performance of multiple
price policy
Purchase Policy Innovation

Reflection of Unit Cost Change Factors Performance
In August 2009, kt institutionalized the reflection of unit cost change factors. Factors such as the Amount
Number of
previous year’s inflation rate, foreign exchange rate, and material cost change have been standardized Category (KRW100
cases
millions)
and reflected in the initial target price, which is decided every year. In case unit cost change factors Multiple
191 1,763
Pricing
increase by over 3% during the contract period, the supplier can request price adjustment. Overall
82 1,384
Evaluation
Adopting the Multiple Pricing Policy Target Price

Adjustment
101 1,343
kt adopted the multiple pricing policy in August 2009. In this policy, the lowest bidder wins the N:N Contract 287 3,712
contract quantity. However, if the lowest bidder’s bid price is more than 5% lower than the 2nd lowest Long-term
14 382
Supplier
bidder, the 2nd lower bidder’s price is set as the contract price for the original lowest bidder.
Bid Price
215 515
Limitations
Improving the Overall Evaluation Bid Policy

In August 2009, kt improved the evaluation bid policy. To prevent unfortunate circumstances of
purchasing low quality goods when focused on price, improvements were made to the bid policy
so that the final bidder is decided after evaluating both quality and price. When newly purchasing
equipment that has gone through the BMT (Equipment Evaluation) and when making repetitive
purchases on equipment, the overall evaluation bid policy serves as the general rule. However,
the reflection ratio of quality points will be over 50/100 as stipulated by regulations.
Allocating Quantities to all SGs

Starting in August 2009, kt initiated a policy to allocate quantities to all the SGs (Items). Based Purchase Support System
on operational quality, after selecting a few SG suppliers, a minimum quantity is allocated to all
SG suppliers. This policy is applied to items when the number of items exceeds the number of
suppliers in comparison to the annual consumption amount or when there is a need to decrease
the number of suppliers on an item due to reduction in demand.
Adopting the Bid Price Limitation Competitive Bidding Policy

In October 2009, the policy was adopted. It is a policy excluding successful bidders if the tender
offer is below the bid limitation base price which is calculated as ‘the average price multiplied
by the limitation ratio of the tenders offered below the target price.’The limitation ratio is generally
set at 80%, but can be changed by the characteristics of the bid.
Minimizing the Discord in the Contract / Delivery Ratio

As part of the company’s effort to minimize the discord in the contract / deliver ratio, measures
were initiated in May 2010. The measures include demand forecasts by product based on
a real name policy, standardization focused on outstanding preferred items, invigoration of price
contracts without quantity, and systematic management of quantity allocation ratio.
Eliminating Volume D/C Policy

The Volume D/C policy was eliminated in June 2010. Initially, when items are delivered in excess of
110% compared to the original contract amount, a Volume D/C policy was applied by changing
the contract. However, considering the difficulty in accurately projecting demand, there were
suggestions that improvements had to be made from a mutual growth perspective.
63
Dream with Suppliers Self-regulated Allocation of Field Preferred Equipment
Because of the differences in product configuration or structure of each supplier’s product, there
Promoting Mutual Growth exist differences in work and operational conveniences. As such is the case, in case preferred
Building Green Ecosystem items are supplied in excess of the contract quantity, the excess amount can be freely allocated
Fair Trade
based on preference. This rule applies to all item provided by all suppliers and to those items pre-
Supplier Communication ferred. This is also to eliminate problems caused by inefficiencies of the suppliers manufacturing
facilities as a result of being supplied too early because of the item’s preference.
0
Violation of fair
trade practice
Fair Trade Compliance

kt operates the fair trade compliance program (CP) to prevent economic losses for society and the
company while voluntarily complying with regulations and preventing unfair activities. During
the 2009 CP rating evaluation conducted by the Fair Trade Commission (FTC), we acquired the
top rating of “AA.” The recognition served as an external recognition of our commitment to fair
competition and secured incentives such as the reduction of fines and exemption from official
FTC investigations for the subsequent two years. In addition, in 2010, kt and three of its affiliate
Ceremony for win-win cooperation companies concluded an agreement with 520 SMEs, promising mutual cooperation and fair
and fair trade
trade. Through the agreement, kt proclaimed externally that it would abide by regulations and
principles to guarantee transparent subcontracting transactions.
Items for Pre-audit Fair Competition Deliberation Center

• Companywide marketing plans, ad campaigns,
As part of our fair trade compliance program, kt opened the Fair Competition Deliberation Center
PR materials
in 2005 comprising of fair trade lawyers. By conducting reviews on anti-trust issues for business
• Marketing agreement among service providers
plans of all divisions, we are effectively preventing violations of competition laws. Additionally, we
• Internal transactions among affiliates such as
finance, assets, and human resources have designated on-site fair trade representatives to prevent unfair business activities.
• Contracts with suppliers/outside distributors/
subcontractors
Fair Competition Education and Promotion
kt provides training on fair trade three or four times a year. Online training programs are for the
No. of Pre-audited Deliberations
employees. In addition, experts from regulatory organizations are invited to share information
Category 2008 2009 2010
on recent trends in laws and systems on fair trade while special lectures on key fair trade issues
No. of cases 348 418 651 are being held. Visiting lectures are organized for departments where fair trade is of particular
importance. To establish a culture of fair competition and promote continued interest and
No. of Trainees by Year dedication, kt has incorporated an evaluation system.
Category 2008 2009 2010
Working- Corrective Measures for Unfair Trade Practices

level 96 57 41
education General Unfair internal
Cartel Others * Total
unfair trade transaction
Cyber Type
1,447 1,260 1,387
program Correction Fines Correction Fines Correction Fines Correction Fines Correction Fines
(case) (case) (case) (case) (case)
2008 - - - - - - - - - -
2009 - - 1 0 - - - - 1 0
2010 - - - - - - - - - -
* Related to Contract Terms Regulation Act, Labeling & Advertising Act, Door-to-Door Sales Act, e-commerce Consumer
Protection Act
64
77.4 points
Supplier satisfaction
index
Operating Mutual Growth Center Operation of Mutual Growth Center

kt operates the Mutual Growth Center, providing conveniences such as conference rooms, OA
• Center size: 200m2
equipment, etc. Supplier suggestions (VOS: Voice of Supplier) is also heard at the center. An exclusive • Available facilities: Conference room,
Consultation room (5), Business room
window is open within the center to provide mutual cooperation one-stop work support.
2009 2010
• Usage results • Usage results
Ideas, Proposals & Rewards 2,911 suppliers 1,830 suppliers
5,932 visitors 7,044 visitors
We reorganized our site for submitting suggestions and proposals (ktidea.olleh.com) in order to 1,784 times used 1,136 times used
create a single reception window. We have also streamlined our processes so that all ideas or
proposals are reviewed and decided within two months of receipt. We have also introduced an
idea purchasing scheme for technology, business models or other ideas that contribute to our
operations. If an idea can be commercialized, the proposer will be guaranteed up to 50% of the
total procurement volume for the item in question. For ideas that require further development,
purchase orders are assured for a pre-set period if the development is completed successfully.
Our commitment to supporting the R&D activities of SMEs is underlined by a KRW45 billion
fund for commercializing ideas and technologies related to mobile applications and content. Idea proposal site (ktidea.olleh.com)
An additional fund worth KRW55 billion is planned to support projects for key IT solutions. These
funds lower the R&D costs of SMEs and revenues earned from projects will be shared.
Operating “IT CEO Forum”

The core leaders of the small & medium IT companies are the main bodies of the IT CEO Forum. The
Forum is operated from three different directions: holding open forums, encouraging coexistent
partnerships and linking on/offline. The open forum is open to all companies, mainly to small &
medium IT company CEOs, guests from large corporations, associations, academic institutions and
related R&D centers participating to search for ways to achieve mutual growth. From a coexistent
partnership perspective various results were obtained. They include increasing the number
projects shared (MVNO, App. Store, etc.) through mutual cooperation which is being pursued by
kt and other large corporations, expanding free discussions and networking exchange gatherings The 9th IT CEO Breakfast Seminar
related to specific business and R&D (‘ollehting’), and attracting special loan programs from IBK for
forum member companies. To hook up on/offline, 6 regular seminars were held annually and the 4
major regional conferences were made into a regular event. Guests were invited to the information
exchange seminar to hold around 20 seminars including the DigiEco Open Seminar. Information
on these seminars can be found on the forum’s exclusive portal (www.itceo.org).
Operate Information Sharing Consultative Group

kt established an ‘Information Sharing Consultative Group’ to help support suppliers when
promoting their products or when emergency demand occurs. The 1st consultative group
meeting was held on October 28, 2008 with Kisan Telecom and 11 other companies participating.
Supplier Satisfaction Level
Issues on the emergency demand timing and inventory carried by suppliers were discussed.
Category 2008 2009 2010
Supplier Satisfaction Level Points 80.2 75.2 77.4
Since 2005, kt has performed multi-dimensional evaluations on its suppliers every year to assess the
company’s general purchasing process make improvements accordingly. The survey conducted in
2010 showed a satisfaction score of 77.4 points, up 2.2%p from the previous year’s result.
65
kt is implementing its social contribution activities focused on 4 areas: IT Sharing, Love Sharing, Culture
Sharing & Green Sharing. As such, on a company level, through the kt Volunteer Corps of Love and IT
Supporters, greater efforts are being placed on communications and sharing with local societies.

External (0~100%)
100 A Social Contribution System
Ⓑ A
Ⓑ IT Sharing / Love Sharing / Culture Sharing / Green Sharing
80
Ⓒ Addressing Digital Divide
60 Ⓓ Ⓓ Community Communication
40
Ⓒ
20
20 40 60 80 100
Internal (0~100%)
Major Performance
Category 2008 2009 2010
Beneficiaries of IT Supporters (persons) 453,084 515,286 325,771
Volunteer Hours (hours) 255,219 89,621 114,657

kt Volunteer Corps
of Love
No. of Participants (persons) 39,878 15,723 30,383
IT Master Scholarship No. of Beneficiaries (persons) 225 256 263
• Social Contribution Outstanding Award – Human Network Association (Ministry of Health & Welfare, KBS)
• Social Contribution Outstanding Leadership Award – Korea Productivity Center
kt has placed a great effort into eliminating the
information divide that low income families
face. Social Contribution activities targeted
towards children have continued in order to
make sure that children from alienated classes
do not lose their dreams and hope. Greater
interest should be placed on these children so
that they don’t fall back in this information age.
Jee-Mahn Shin
Public Relations Department,
Public Relations Office
Beneficiaries of
IT Supporters
(persons)
No. of Beneficiaries of
IT Master Scholarship
(persons)
No. of Employees Participating

in kt Volunteer Corps of Love
(persons)
Dream with Society
114,657
Social Contribution System
IT Sharing
Love Sharing hours
Culture Sharing Volunteer hours
Green Sharing
Addressing Digital Divide
Community Communication
Social Contribution Strategies

Corporate social activities are a means to form a sound relationship between a company and society
by sharing corporate resources with local communities, contributing to mutual growth and progress.
kt has introduced diverse initiatives to address the problem of the digital divide and enhance quality
of life in local communities. Our management directive calls for us to be a respected company under
the slogan of “Together, Come, olleh.” kt’s social contribution slogan incorporates the determination
to change the way of thinking, which is the direction that ‘olleh management’ is pursuing, and the
practice of sharing on a global basis. It also embodies three meanings: Together, Come and olleh.
Together refers to coexistence, while Come alludes to action and participation oriented towards the
world. Last, olleh refers to a happy world of sharing together.
Mission and Direction
Create a brighter world through ‘olleh’ sharing activities

Mission Serve all of society through continuous social contributions
Support the marginalized by sharing core strengths
Vision Create a more pleasant world by sharing
Slogan Together, Come, olleh
Key area Multicultural families Children
Approach IT sharing Love sharing Culture sharing Green sharing
Organization for Social Contribution

kt Volunteer Corps of Love
Activities of kt Volunteer Corps of Love
kt Volunteer Corps of Love was founded in 2001 to promote greater efficiency by integrating kt
2008 2009 2010 employees’ volunteer activities, which had been conducted individually, into a systematic, company-
Volunteer wide movement. Currently, the Corps consists of more than 700 teams with around 31,000 employees
255,219 89,621 114,657
hours
donating their time to various causes such as supporting local children’s centers, helping the
No. of
39,878 15,723 30,383
participants underprivileged, providing disaster relief assistance, and extending a helping hand to farming and
fishing communities. In addition, the Corps provides programs for children such as education and
scholarships for gifted students. In 2010, a volunteer activity guideline was announced company-wide
to ensure effectiveness of the company’s volunteer activities.
Organizational Chart of kt Volunteer Corps of Love
Head (CEO)
Secretariat (PR Office)
Headquarters and Personal Customer Home Customer Corporate Customer

Network Division (73)
other departments (88) Division (76) Division (28) Division (189)
68
IT Supporters
Launched in 2007, IT Supporters is kt’s employee volunteer group that donates IT knowledge to
enable anyone to freely utilize IT. This pro bono contribution is focused on donating the talents of
the IT Supporters and is considered to be a representative example that changes social contribution.
A total of 200 full-time employees from 23 teams across the country are focused on narrowing
the information divide and improving life through IT. Anyone can request the support of the IT
Supporters by calling (1577-0080) or by connecting to the Internet (www.itsupporters.com).
Launch of fifth group of IT Supporters
Organizational Chart of IT Supporters
IT Supporters Center (4 staff )

23 teams / 200 staff
Metropolitan area Gangwon Chungcheong Honam Youngnam Jeju
9 teams / 90 staff 1 team / 8 staff 3 teams / 24 staff 3 teams / 24 staff 6 teams / 51 staff 1 team / 3 staff
Social Contribution Spending

Finance for Social Contribution by Category (Unit: KRW 100 million)
To promote social contribution activities, kt has managed the Love Sharing Fund since 2003, which
Category 2008 2009 2010
is led by employees’ voluntary donations and the company’s matching grant scheme. The company
Love
matches the donations raised by employees to support social contribution activities of each volunteer 42 40 40
Sharing Fund
team and mid- to long-term social contribution initiatives for hearing-impaired children and local Education and
8 8 12
scholarship
children’s centers. In 2010, 73% of our employees made donations, raising a total of KRW1,740 million.
Sponsorship 19 21.3 70*
Support for
Operation of the Love Sharing Fund is stipulated by the Love Sharing Fund Operation Committee, which hearing-
1.4 1.5 2
is comprised of representatives from both labor union and management. To ensure transparency, each impaired
children
volunteer team is required to post on the Internet site details and related evidence of the uses of the IT support
allocated funds. for local 250 250 130**
communities
Culture, art, and

Donations to Love Sharing Fund sports
28 31 116***
Category 2008 2009 2010 Total 348.4 351.8 370
Fund raised (KRW 100 million) 21.2 20.3 17.4 * Donations in kind added
** Decrease in number of IT Supporters (400 -> 200)
*** Cultural and sports activities added
Employees’ participation rate (%) 78 78 73
Evaluation & Compensation System

Results of all volunteer activities are required to be registered on the website (www.volunteer.kt.co.kr).
This is to evaluate and compensate the volunteer activities carried out by kt employees & executives.
After evaluating the Volunteer Corps of Love and the activities towards local children’s centers across
the country in 2010, five volunteer teams were selected for their outstanding social contributions.
These teams were awarded a commendation and monetary reward by the CEO. In addition to this,
ten outstanding volunteer teams are selected every month and provided incentives. Starting in 2011,
social contribution awards will be upgraded in status to the kt grand prize.
69
Dream with Society
325,771
IT Sharing
Love Sharing
persons
Culture Sharing Beneficiaries of IT Sharing
Green Sharing
Supporting Multi-cultural Families

Starting in 2010, in connection with the Ministry of Health & Welfare’s Nationwide Multi-cultural
Family Support Division and Multi-cultural Center, kt has been providing greater support to multi-
cultural families. Some of the support includes opening kt multi-cultural classes to provide IT
lessons and opportunities for wives from abroad to experience Korean culture. In addition to
providing MS Office program lessons such as Word and PowerPoint, kt actively provides support
to help multi-cultural families settle down and educate their children through Korean language &
Supporting multi-cultural family cultural classes and lecture skill training.
(Multi-cultural Center in Songpa-gu)
IT Knowledge Sharing
kt is taking the lead in creating a “warm smart world” through its ‘Smart Academy’ and ‘Smart
Sharing,’ which provides support in narrowing the new types of information divide in the wake of
the advent of hi-tech IT devices. As part of our effort, new IT device experience & usage training
and information accessibility opportunities are provided to the four alienated social groups. If
requested by outside institutions or organizations to help train on the use of smart devices, kt
provides customized lectures. In addition, the ‘Smart Academy’ lectures are publicly held in major
IT Knowledge Sharing (Sweet Academy) metropolitan cities such as Seoul, Busan, Daejeon, Daegu, Gwangju, Ulsan and Jeonju. ‘Smart
Sharing’ activities are also held for local children’s centers to help eliminate the Smart Divide.
IT Knowledge Training Activities

Category Open lecture On-site lecture Group lecture Total
No. of trainings 91 630 197 918
Participants (persons) 1,283 14,099 399 15,781
Supporting the 4 Information Alienated Social Groups

For the 4 information alienated social groups, the disabled, farmers/fisherman, old/senior citizens
and low income groups, kt held basic computer and Internet application training. IT training for
practical everyday usage and classes for various qualification tests were also held. Through this
training, kt is narrowing the information divide and enhancing the quality of life.
IT Supporters Experience Training for Stakeholders

Supporting Alienated Social Groups As part of IT Supporters’ experience-oriented activities for stakeholders, intern IT Supporters
(Health Town for Senior Citizens in Gwangju) activities were implemented. During the first half of 2010, 362 interns participated, while 113
joined during the second half. 20 overseas students also participated as interns. Besides this, the
IT Supporters University Student Volunteer Group, comprised of 200 college students(22 teams),
carried out diverse activities across the country from July 12th to 23rd.
70
Supporting Small & Medium Entrepreneurs & Independent Enterprises
Targeted towards merchants in traditional markets such as Seoul PoongMool Market, Gwangjang
Market and Bangshin Market, and local small entrepreneurs including the Yangsan multi-cultural
restaurant, Busan Beauty Artists Association and Daejeon City Music Education Institutes,
kt provides support that can help create real economic value through homepage & blog
construction and practical OA training.
Training to Prevent Negative Effects of the Internet Junk shop (PoongMool Market in Seoul)
In concert with kt’s Culture Foundation, continuous training is provided to the general public and
children to help counter the negative effects of using the Internet. The major contents of the training
include Internet addiction prevention, cyber crime prevention, and personal information protection.
To help prevent these side effects, kt trained expert lecturers. In 2008, 2009 and 2010, a total of 80, 330
and 131 lecturers were trained, respectively.
Global IT Sharing
Education to prevent negative effects of
Volunteer activities of IT Supporters became a target for benchmarking by the Ministry of Internal Internet
Affairs and Communications of Japan. It was also acknowledged overseas as a representative

example of social contribution activities. In October 2008 and November 2009, IT Supporters
visited Sri Lanka’s Ministry of Education to provide training on utilizing the Sri Lankan language
virtual keyboard and construction of audio/video contents. This was followed by IT training IT Supporters’ Program
courses held at the Goryo People’s Cultural Center in Russia’s Maritime Province. This was the first
overseas training opportunity which is an excellent representation of global IT sharing. Supporting Multi-cultural Families
• Support multi-cultural lecturers on using the
Powerpoint
• Support multi-cultural families in converting to
a Korean citizen through Korean language &
culture training utilizing IT
Results of the IT Supporters Activities (Beneficiaries) (Unit: persons) • Support in providing everyday practical
convenience through traffic information and
Information shopping mall search
Multi- Companies
alienated General
Category Total Children cultural and other
social public
families organizations Supporting Small Entrepreneurs &
groups
Independent Merchants
2008 453,084 216,502 115,792 81,043 21,022 18,725 • Help create a marketing platform through the
construction of a homepage and Blog
2009 515,286 202,371 185,747 80,688 25,991 20,489 • Enhance productivity through practical O/A &
various S/W training
2010 325,771 120,778 86,793 20,166 80,393 17,641
Customized IT Training
Total 1,294,141 539,651 388,332 181,897 127,406 56,855 • Method of using computers & printers
• Internet information search
• Construction of UCC & digital albums
• Method of utilizing Hangeul, Excel, PowerPoint
Outside Evaluation of the IT Supporters Contribution Activities • Homepage & Blog construction
• Method of using digital cameras, MP3s &
mobile phones
Nov. 21, 2007 Awarded the Korea Volunteer Service Grand Prize in 2007 (Korea Social Welfare Association)
Dec. 17, 2007 Selected among the 100 to have lightened the world in 2007 (Korea Green Foundation) IT Utilization for Practical Everyday Living
• Internet (banking, shopping, reservation)
Selected as the most memorable university student social contribution program • Issuance of electronic civil documents
Aug. 12, 2008
(Yonhap News) • Issuance of public certification
• Using emails and messengers
Oct. 17, 2008 Visited the Sri Lankan Ministry of Education and provided training on the use of the Sri Lankan
Nov. 09, 2009 language virtual keyboard and construction of audio/video contents.
Using Hi-tech IT Devices
Jun. 03, 2009 Awarded the “Prime Minister’s Award” on the Information Culture Day • Method of using smartphones
• SNS service using smartphones
Jointly executed measures with the government to counter DDoS attacks: Carried out Zombie • Method of using tablet PCs
Jul. 12, 2009 ~
PC clean-up activities
The Ministry of Internal Affairs and Communications of Japan visited kt to benchmark Preventing Negative Effects of IT
Nov. 25, 2009
the IT Supporters activities • Special lecture on self-evaluation of Internet
addiction & prevention
Nov. 04, 2009 Held the first overseas IT training classes at the Goryo People’s Cultural Center • Cyber crime prevention, voice phishing
~Nov. 13, 2009 in Russia’s Maritime Province prevention & personal information protection
• Method of utilizing programs to help block
Jan. 05, 2010 Selected as the most recognized amongst the CSR activities of the 30 large groups (Economist) hazardous sites and PC usage time
• IT classroom with both parents and children
Nov. 24, 2010 Awarded the Grand Prize at the 2nd Korea Human Awards (Ministry of Health & Welfare / KBS) participating
71
Dream with Society
IT Sharing
Love Sharing
400
No. of sisterhood children’s centers
Culture Sharing
Green Sharing
Love Sharing for Children

Support for Local Children’s Centers
kt is carrying out diverse support activities targeted towards local children’s centers to enable
alienated children to grow into future leaders. Various activities were held for 400 local children’s
centers in 2010 which included tree planting, book donations, educational environment
improvements, etc. In 2011, the number of children’s centers receiving this support is expected to
expand to 1,000, targeting 30,000 alienated children.
Mini- Library in ‘Delightful School olleh Dream Center

Local Children’s Center’ Starting in 2010, in connection with local children’s centers located in major areas, kt began
operations of its ‘olleh Dream Center.’ Utilizing available space in kt branches across the country,
the olleh Dream Centers were equipped with diverse IT devices which included IPTVs, beam
projectors, smart pads, etc. Through the olleh Dream Center, various educational courses were held
to help enhance scholastic achievements. Courses include English, constellation education and
music. As of the end of 2010, including the olleh Center located at kt headquarters in Seongnam
city, seven centers were under operation in major areas of the country. During the 1st half of 2011,
olleh Dream Bus three centers were added, bringing the total to ten nationwide. In order to enable children to
conveniently use the olleh Dream Center, buses to and from each center was provided.
Support for Hearing-impaired Children

We have helped children and teenagers from low-income families to restore their hearing since
2003. As of the end of 2010, kt has funded artificial cochlea implants and rehabilitation treatment
for 126 children, while 172 more have been given digital hearing aids. Starting in 2010, the scope
of support was expanded to cover brainstem transplant surgeries from just hearing disabilities.
To provide more systematic support kt and Yonsei Medical Center concluded an MOU for the
“Find the Voice for the Hearing Disability Children Project.” With the support of the kt Cultural
Hearing Recovery Project for the Hearing Foundation in 2010, through the ‘Find the Voice’ project, 21 children with hearing disabilities were
Impaired Children
selected and provided treatment cost and hearing aids.
Number of Children Receiving Hearing Restoration Support (Unit: Persons)
Category 2010 Cumulative
Brainstem transplant 3 3
Artificial cochlea implants 7 126
Digital hearing aids 11 172
Total 21 301
In commemoration of ‘Ear Day’ on September 9, kt and the Yonsei Medical Center jointly held
campaigns. With the theme ‘Noise, Communications & Important People,’ the event included
various programs that helped everyone realize the importance of sound. Some of the events
included hearing examinations, photo exhibits and a mini concert.
‘Ear Day’ Commemoration Mini Concert
72
Love Sharing for the Alienated Social Group
Scholarship Programs
kt Labor-Management Youth Scholarship Project

To foster future leaders through support for the alienated social class, kt’s labor union & management
initiated a Youth Scholarship project by providing tuition fee to selected outstanding high school
students of low income families. In 2010 a total of KRW280 million were provided as support
to 210 high school students. The beneficiary students were further encouraged through Youth
Camps. In 2011, KRW300 million has been allocated for 217 high school students.
IT Master Scholarship Labor-Management Youth Scholarship
Initiated in 1988, the ‘IT Master Scholarship’ is a scholarship program providing scholarships to olleh IT Master Scholarship
academically outstanding university students that have been recommended by each school. Year of
scholarship 2008 2009 2010
The students have to be majoring in any IT related department, including electronics, computer, granted
electricity, telecommunications, media, etc. In addition to providing scholarships, network
No. of recipients
225 256 263
establishment programs are also implemented to continuously maintain a close relationship (Persons)
with scholarship beneficiaries. Programs include seminars and informal discussion tables. The Supported
amount (KRW 8 8 8.2
beneficiaries are also provided the opportunity to participate in local IT Supporters and supporters 100 million)
Note) Total no. of recipients 5,662 / Accumulative

of kt’s exhibitions. The size of the scholarship in 2011 was at the same level as that of 2010 at
amount KRW14.8 billion
KRW820 million. Scholarships are to be provided to a total of 263 students in 141 universities.
Hope Sharing Fund for Youth

For those customers wanting to participate in kt’s youth scholarship project, the telecommunication
rates on their bill are increased in units of KRW thousand at the request of the customer. This
increased amount is reserved as scholarship funds. The funds are managed under the ‘Hope
Sharing Fund for Youth’ to help youth in low income families that have talent in culture & arts and
athletics. In 2010, KRW20 million were provided as scholarship to 4 students.
Disaster Recovery
When stricken by unexpected disasters, kt works hard to repair telecommunications facilities and
restore services as quickly as possible. We also provide public phone services to the victims without
charge, as well as telecommunication services at reduced or exempted rates in order to ease
their hardship. In addition, kt Volunteers are dispatched to the scene to deliver relief supplies and
donated funds as well as to help out with the recovery effort. In the aftermaths of the sinking of the
Cheonanham naval ship and the bombing of Yeonpyeong Island, contributions of KRW227 million
were evenly made through the Community Chest of Korea and the Korean Red Cross in 2010. Telecommunications Rate Reduction for
Special Disaster Areas
Global Love Sharing

In cooperation with KOICA, a government grant aid agency, kt completed construction of Wimana
elementary school in Rwanda’s Kamonyi City on March 2011 as part of the Korean government’s
public-private partnership project. As a result of the project, about 600 students, who had to
travel long distances to school before, now have the benefit of having a school close by. KOICA
and kt provided the school with various study material, uniforms and soccer balls. In addition, kt
implemented the Information of Education project in Uzbekistan by donating a computer class
in September 2010. This has become a model to computer classes to come. The donated class Relief Funds for Affected Citizens in
Yeonpyeong Island
included PCs, scanners, printers, a beam projector and a screen. Other items donated included
soccer balls, basketball balls and volleyballs. In addition, kt opened a kt multi-cultural class at the
Mapo Multi-cultural Family Support Center to provide support to domestic multi-cultural families in
April 2010. This was in conjunction with The Central Office for Multicultural Family Support Center.
Twice in 2010 (January / September), newly hired employees carried out clean-up activities for multi-
cultural families as part of their volunteering initiative.
73
Dream with Society
527,333
IT Sharing
Love Sharing
persons
Culture Sharing Visitiors to olleh square
Green Sharing
Mecenat Activities
olleh Square
The olleh Square, located on the 1st floor of kt’s Gwanghwamun building, is an integrated
cultural space (3,300m2) for experiencing IT. The ‘kt Art Hall’ was renovated and changed in
May 2010 to the olleh Square, housing up-to-date IT devices and services that everyone can
experience unlimitedly. By operating a café and holding olleh Square Talk Concerts, the olleh
Square has become one of the leading integrated cultural spaces where culture and relaxation
is offered.
olleh Square
The olleh Square is also used for outside events such as the 62nd Army Day Commemoration
and the launching of Apple’s iPhone4 and iPad. It has also become a popular tour course for
experiencing the hi-tech IT environment. Since its opening on May 24, 2010 and as of the end of
2010 there were a total of 527,333 visitors.
kt Chamber Hall
The kt Chamber Hall was opened inside the Mokdong IDC in Seoul in May 2009 as part of a remodeling
project. As the name suggests, the venue is designed to stage chamber music performances. The Hall
can accommodate an audience of 410, while parking is available for 600 vehicles. Prominent chamber
music artists are invited to perform, and the recorded performance is broadcast on our Chamber Hall
concert channels - olleh TV classical music and concerts.
kt Chamber Hall The ‘Saturday Afternoon Chamber Music with kt’ which was held 24 times since the hall was first open
had a total of 9,262 audiences, whereas the ‘2010 Jazz and the City’ performance, which was held 12
times, had a total of 3,266 audiences. By providing seats at extraordinary rates and donating seats to
the alienated class, and inviting VIPs to special events, the kt Chamber Hall is fully being utilized for
purposes of social contribution and customer satisfaction.
Sports Sharing Activities

Sonic Boom Basketball Team Activities
kt Sonic Boom, kt’s professional basketball team with connections to Busan, held diverse social
contribution activities. Through the Love Seat Sharing event, free professional basketball game
seats were provided to alienated children and misfortunate neighbor support groups in Busan.
kt’s Sonic Boom and Busan’s Fruit of Love initiated a surgery cost support program to help children
with hearing impairment to hear again.
Winner of the 2010-2011 Basketball Regular
League
In addition, through Sonic Boom’s 2nd Frontiers, a sports onsite experience group, an onsite sports
experience program was initiated for university students living in the Busan area with interest
to sports marketing. Also, by holding intern programs for university students and soon to be
graduating students in the Busan area, kt is helping to create jobs and to foster sports leaders. In
July 2010, the Sonic Boom Children Basketball Club was launched for children in the Busan area.
Summer camps were also held. To create a healthy sports culture among the young, the ‘2010
Basketball Class with the Alienated Children olleh 3 on 3 Basketball Contest’ was held. As a new concept sports cheer group for the alienated,
the ‘olleh Gun’ was created, helping the alienated participate in sports cheering.
74
Pro-gamers Activities
Through the co-sponsorship of kt’s pro-gamers and the Korea Make a Wish Foundation a charity game
event was held. KRW20 million was collected and delivered to children with incurable diseases.
Supporting Amateur Sports

kt fosters future sports potentials. To expand non-popular sports, kt started managing a women’s
hockey team and a shooting team in 1984 and 1985, respectively. In 2010 alone, including Jin,
Jong Oh’s World Shooting Championship and Asian Games gold medals, kt’s shooting team won Charity Game Event held by kt Pro-gamers
56 medals in 13 domestic and overseas championships. The women’s hockey team won the silver
medal at the Asian Games and became two time champions in domestic competition. kt also
provided support to Baduk competition, contributing to the growth of young Baduk players.
Supporting Children Soccer Competitions

In addition to sponsoring the Korean National Soccer Team, kt also helps foster young soccer
players and provides support to children sports competition (Little K-League). By enabling children
olleh kt Baduk Competitions
alienated from elite soccer the opportunity to participate in soccer competitions, kt helped to
instill dreams of becoming national soccer players and foster a healthy children’s culture.
Children Soccer Competitions

(Little K-League)
Preservation of the Dong River

kt has been protecting the Dong River, which boasts stunning scenery, and sponsoring projects such
as the restoration of a traditional house in Jejang Village, Jeongseon-gun, Gangwon Province. We have
also participated in raising funds to purchase 17,190cm2 of since 2003. We then carried out volunteer
activities to complete the construction of a traditional house, “Loving Dong River” in August 2005. The
house has become a symbol of Dong River preservation activities and is used as a site for teaching
youths about the importance of protecting nature.
Protecting Ranunculus Kazusensis Makino Colonies in Ganghwa Island

Since 2003, kt has been leading the movement to protect colonies of ranunculus kazusensis
makino, an herbaceous water plant belonging to the buttercup family. This species grows only
in Ganghwa Island and has become threatened with extinction due to habitat loss. The National
Trust of Korea designated this wild plant as the country’s first Citizen’s Natural Heritage. We created
mountain paths near the colonies to prevent their being damaged, and we sponsor trips to view
the flowers in bloom every May. (On May 15, 2010, we invited 40 children from local children’s
centers.) Meanwhile, since 2009, kt has been supporting local residents’ efforts to prevent damage Local Children’s Center Ranunculus
Kazusensis Makino Observation Activities
to the olleh hiking trails on Jeju Island and to promote them as a tourist attraction.
H2O Green Protection Event

As part of the labor-management coexistence program, kt initiated the ‘H2O (Host to olleh) Green
Protection Event.’ Held simultaneously in 460 locations, a total of 21,000 labor union members,
employees and executives participated in clean-up activities. Surrounding streams, roadsides,
cultural heritage facilities, bus stops, and ravines were part of the clean-up targets. In the future, the
green protection movement will be expanded from environment clean-up activities to protecting Green Protection Activities
cultural heritage sites and providing twice annually cultural performances for local citizens.
75
Dream with Society
IT Sharing
Love Sharing
KRW 235.3
Fee reduction for the
billion
Culture Sharing underprivileged
Green Sharing
Providing Universal Service

Universal service refers to basic telecommunications services that are provided to everyone
at an appropriate rate when and wherever. In other words, it allows users to conveniently use
communications services at a rate that can generally be paid by most of the public, no matter
which social class the user is in or where the user lives. Universal services generally include wired
phone services, emergency communication phones services, and discount rates for the disabled
& low income groups. kt maintains low rates* for all citizens using services designated as universal
services. No discrimination is placed on usage conditions such as rates or quality for reasons of
geographical location, income level and whether disabled or not. Usage conditions are applied
* Landline rates based on small / medium usage are

equally. Unlike most other domestic telecommunications service providers limiting service
the second lowest among OECD nations membership areas due to service area coverage issues, kt provides the same service to users in
(OECD Communications Outlook 2009)
cities and users living in high cost areas such as agricultural / farmland & island areas.
Rate Reduction for the

Underprivileged 2010 Universal Service Status
(Unit: KRW 100 million)
Service definition Service status
Phone service • Service provided to 16,258,000 subscriber users

2,353 connecting as of the end of 2010 (Market Share: 86%)
City Call Service communications • Replacing worn-out switchboards: 264,000 lines
2,103 between subscribed • Facilities provided due to demand from new
phones city development: 275,000 lines
1,747
Wired Phone service
Phone Island connecting • Providing inner city phone & broadband Internet
Services Communications communications service to 65,000 subscribers in 422 island areas
Service between land & island across the country
and island to land
Phone service
2008 2009 2010 • Operates 88,000 public phones nationwide
Inner City Public connecting
• Regular disinfection/sanitary management,
Phone Service communications using
convenient booths for the disabled
public phones
• Emergency Numbers: National Security Reporting

Among the backbone / Consultation (111), Crime Reporting (112),
communications service, Spy Reporting (113), Cyber Terror Reporting
Special Number
services that the Korea / Consultation (118), Fire / Disaster Reporting
Phone Service
Communications Service (119), Maritime Accident & Crime Reporting (122),
for Emergency
has designated as a Smuggling Reporting (125),
Communications
special number phone Drug Crime Reporting (127)
Emergency
service • Calls are diverted to the nearest representative
Communications
authority; calls are free
Phone Service
• Provide telegraph, phone and telegram services
Phone service
to 4 thousand subscribed ships
connecting
Ship Wireless • When a GMDSS*** disaster signal is received,
communications
Phone Service the signals are automatically relayed real-time to
between land to ship
related organizations such as the maritime police
and ship to ship
in accordance to the SOLAS** Convention
• Discount rate services; city/long distance

Communications service
phone calls, phone information, mobile phones,
at discount rates for
broadband Internet
those requiring social
** International Convention for the Safety of Life Phone Services at Discount Rate • Set amount discounted from base rate and
protection such as
At Sea enacted by the International Maritime usage rate
the disabled and low
Organizations • 5,239 thousand subscribers by service in 2010;
*** Global Maritime Distress and Safety System income class
total of KRW235.4 billion discounted
76
Information Village
In 2010, kt participated in the farming & fishing village broadband project to provide public
good such as enhancing the quality of life for these villages and vitalizing the local economy. The
project entailed the installation of a broadband network with a capacity of 50 or less subscribers,
providing specialized services for the village occupants, which include providing broadcasting,
and convenience and safety related services. In addition, by advertising and providing educational
support to vitalize the usage of the broadband network, kt’s objective is to achieve balanced
growth between the city and village, while contributing to the information expansion of the Building broadband networks in farming and
fishing villages
country. With the start of the smart infrastructure establishment working group committee
on June 20, 2010, agreements with ten local governments from Chungbuk to Gyeonggi were
Broadband Networks Built in 2010
concluded between July and October. By pre-planning and designing to be able to provide
No. of No. of
services within the predetermined period, kt was able to complete the broadband subscriber Region
No. of
coun- house-
cities
ties holds
network at the end of November 2010. To successfully complete the project, existing copper-
Ulsan 1 10 393
based ADSL, FTTC, and FTTP networks were replaced with FTTH networks, creating a farming Gyeonggi 2 10 385
& fishing village IT infrastructure from a long-term perspective. In 2010, kt exceeded its target Gangwon 9 71 2,737
of providing 658 administrative districts with broadband subscriber networks by 26, enabling a Chungbuk 11 71 2,835
Chungnam 15 81 3,335
total of 25,000 households access to the broadband network infrastructure. Many benefits can be
Jeonbuk 10 145 5,221
expected from this kind of Information Village. Among the benefits include the alleviation of the
Jeonnam 20 103 3,900
information divide between regions, enhanced regional competitiveness, increased income for Gyeongbuk 4 86 3,280
local citizens and vitalization of the local community. Gyeongnam 12 78 3,044

Jeju 1 3 121
Total 85 658 25,251
Lover Sharing Communications

To ensure that genuine and effective social contribution programs are initiated, kt holds diverse
Area Communications
communications with related members in each social contribution area, including ‘IT Sharing,’
Plan program jointly with local
‘Love Sharing,’‘Culture Sharing,’ and ‘Green Sharing.’ children’s center associations
Alienated Children Provide transport support
Support Programs through the Dream ‘Poom’ Bus
In case of ‘IT Sharing,’ communications with IT Supporters are possible through the phone (1577- to the local children’s center
associations
0080) and Internet homepage (www.itsupporters.com). Through this, anyone has the opportunity
Carry out theme-based
to receive IT and IT related training and consulting. For ‘Love Sharing,’ communications are held kt Volunteer Corps of volunteer activities by forming
with related parties and beneficiaries in the 4 major areas that include alienated children support Love Volunteer Programs relations with local children’s
centers
programs, activities of kt Volunteer Corps of Love volunteer programs, hearing impaired support
Select beneficiary targets
programs, and scholarship programs. By communicating with the beneficiaries of these programs, Hearing Impairment through hospital networks,
Support Programs including famous otolaryn-
kt is able to initiate social contribution programs that meet their needs.
gologists across the country
Maintain close cooperation
To actively implement ‘Culture Sharing,’ questionnaires are provided to olleh Square and kt Scholarship Programs
with middle & high schools
and universities across the
Chamber Hall visitors. Requests by the visitors are reflected in on-going activities. In addition, by country
using SNS type mediums such as Facebook, information on various performances and Mecenat
activities are advertised, while opinions and suggestions are collected. Last, to expand ‘Green
Sharing,’ in cooperation with various environment-related NGOs such as the National Trust, kt
holds environmental protection experience activities throughout the year. Diverse programs are
being prepared to enable children to understand the importance of the environment.
77
Under the slogan “Green kt, Green Korea,” kt established an environmental vision, “Green Convergence
Leader” that leads the construction of a green advanced country.” By converting the work environment
into a green ecosystem, leading the national economy into a green innovation, and searching for green
growth engines, kt was able to establish a greenhouse gas reduction target of 20%. Meanwhile, Green
IT working group committee was formed to implement green strategies.

External (0~100%)
100 A Environmental Management System

Ⓓ
B Response to Climate Change
80
C Energy Efficiency and Resource Recycling / Realizing Green Office
Ⓕ A
60 Ⓓ Environment-Friendly Products and Services / Participating in Green Growth Projects
CB
Ⓔ Environmental Regulations and Certifications
40
Ⓕ Environmental Communication
20
Ⓔ
20 40 60 80 100
Internal (0~100%)
Major Performance
Category 2008 2009 2010
Scope 1 (tonCO2) 52,936 58,432 66,736

Greenhouse
Scope 2 (tonCO2) 1,147,116 1,057,743 1,061,357
Gas Emissions
Total 1,200,052 1,116,175 1,128,093
Water Use (tons) 2,721,622 2,775,565 3,014,704

Water Use
Water Use Per Person (tons) 85.64 88.78 83.01
Environmental Green Procurement (KRW million) 7,834 1,777 4,876

Investment Green Investment (KRW million) 48,800 113,700 651,200
• Green Technology Certification (3): Home Network Technology using Zigbee/PLC / kt Building Energy Management Solution
/ RF/CT based Energy Remote Measurement
• Green Business Certification (4): 3G, IPTV, VoIP linked Video Conferencing Business / Station broadening to establish Green
Communications Infrastructure / Eco-friendly Address Change business
/ Green IDC Establishment Business Utilizing DC Power Technology
• Leader in telecommunications industry in Carbon Management 2010 (CDP Korea)
ICT is a new communications service not
requiring vehicle mobility, and which helps
reduce carbon dioxide. Going forward, from
a green growth perspective that will provide
greater new opportunities, it is inevitable to
actively pursue this business.
Jin-Myung Lee
Smart Green Division,
Smart Green Development Center
Green Procurement
(KRW million)
Water Use
Per Person (tons)
Greenhouse
Gas Emissions
(tonCO2)
Dream Big 79
Dream with Environment
Environmental Management System
Energy Efficiency and Resource Recycling
Realizing Green Office
Environment-Friendly Products and Services
Participating in Green Growth Projects
Environmental Regulations and Certifications
Environmental Communication
Environmental Management Vision
The Meaning of Green kt, Green Korea As the use of IT devices are expanding globally, the portion that IT takes up in terms of energy
Green kt usage and greenhouse gas emissions are rising. The environment is not only core to sustainability
Cost reduction and accumulation of related management, but also provides new business opportunities. Acknowledging the importance
experiences / technologies by leading the of this, to create new growth engines in the green technology business, kt established ‘Green kt,
green initiative at the highest level
A new leap ahead by searching for

Green Korea’ as its vision. In order to achieve this, there is a need to convert the high energy con-
green growth engines suming social infrastructure to one of zero carbon. At the same time, kt is striving to achieve green
Enhancing group competitiveness by establishing growth by developing IT solutions that encourage IT infrastructure energy savings technologies
the number one green image
and customers to go green. kt will also actively participate in government sponsored green proj-
Green Korea ects to help effectively counter climate change.
Lead the country’s green growth through
Green kt capabilities Vision
Enhance quality of living for citizens through
a green revolution Green kt, Green KOREA
Improve national competitiveness by enhancing
the green country image
Promote green ecosystems Seeking new growth engines Drive green revolution in Korea
• Purchase eco-friendly products • Secure new growth momentum • Promote green telecom infrastruc-
• Strengthen partner companies’ by uncovering sectors for ture and green workplace
green capabilities convergence with IT • Encourage consumers’ green
• Green IT Supporters activities • Home, office, building, lifestyles with green services
infrastructure, energy
Organization and Systems

To drive green growth and efficiently advance green IT-related capabilities, we established the
“Green IT Committee.” Chaired by the CEO, the committee sets annual green IT action plans every
first quarter and passes on relevant information to each subcommittee. It also checks whether
or not the company meets GHG emission reduction targets and generates target revenue from
green products. The “War Room,” a central database center from where the progress of the Green IT
management is monitored in real time, consists of six divisions. The system allows all business units
of the company to share the status of green achievements.
Organizational Chart of the Green IT Working Committee (2011)
Green IT Working Committee

Champion: Head of Research Center
Green Individual Green Home Green Office Green Virtualization Green Infrastructure Green Environment
Subcommittee Subcommittee Subcommittee Subcommittee Subcommittee Subcommittee
Green wireless Green home envi- Green IDC and Virtualization Green network Green property
environment / BM ronment / BM Office / BM technology
Note) kt Networks and kt Telecop started to participate in subsidiary subcommittee in 2011.
80
1,128 GHG Emissions
thousand
tonCO 2
GHG Emission Reduction Plan

GHG Emission Reduction Targets
We plan to reduce our GHG emissions by 20% by 2013 (from 2007 levels) by conserving energy, using
alternative energy sources, upgrading telecom and IT infrastructure, and promoting a green workplace.
GHG Emission Reduction

kt became the first in the Korean telecom industry to build a company-wide GHG inventory system. In 2010,
we examined the energy consumption of our buildings and increased the energy efficiency of our facilities. In
2010, GHG emissions totaled 1,128,093tonCO2, about the same level as that in the previous year. We manage
greenhouse gases that are related to logistics such as vehicles for business use under the category of mobile
combustion of SCOPE 1. Going forward, we plan to increase the portion of environment-friendly vehicles.
GHG Emissions* (Unit: tonCO2) Management of GHG emissions
Type 2008 2009 2010
Fixed combustion 40,839 40,222 49,079
SCOPE1 Mobile combustion 12,097 18,210 17,657
Total 52,936 58,432 66,736
Electricity 1,143,495 1,053,352 1,056,698
SCOPE 2 Steam 3,621 4,391 4,659
Total 1,147,116 1,057,743 1,061,357 * According to Article 44 of the Basic Act on Low
Carbon Green Growth enacted on Jan. 13, 2010, we
recalculated greenhouse gas emissions generated
Total 1,200,052 1,116,175 1,128,093 from rental areas and telecommunication facilities.
(Additional emitting sources: repeaters both inside
and outside buildings, base stations)
Investment in New & Renewable Energy Equipment

A 50Kw solar power generator was installed at Shinnae Branch and on the premises of the
Hwaseong transmitting station in 2008. And in December 2010, at Gangneung receiving station,
the construction of a large capacity 423Kw solar power generator was completed. In the future, kt
will utilize idle land and building rooftops to install or expand solar power generation equipment.
In addition, kt adopted as a trial project, a heating/cooling and hot water supply system within
buildings using geo thermal energy. The systems were installed both at the Daeduk Research
Complex and Gongju Branch. To eliminate dust, vibration and noise in the process of utilizing
heat from 100~150 meters underground, an eco-friendly drilling technology was developed. At Solar Power Generator established in
Gangneung Receiving Station
the same time, as part of the Ministry of Knowledge Economy sponsored new and renewable
energy trial distribution project, kt installed five 1Kw fuel cells at Songdo building. Through these
initiatives, kt was able to conclude strategic partnerships with energy companies. This paved the
way to help kt develop communications and energy combined services.
Support for Customers to Reduce GHG Emissions

kt provides customers with services for measuring and reducing energy consumption. We apply
our technical knowhow to develop smart-grid telemeasuring, telemetering and remote control
solutions that conserve energy. In addition, we provide green home, green office, green building
and green energy services to our customers.
81
3,014
Response to Climate Change thousand
Energy Efficiency and Resource Recycling tons
Realizing Green Office Water use
Energy Efficiency
Real-time Monitoring of Energy Use
We carried out a government-initiated product development project and developed a device
that measures the energy use and carbon emissions of various facilities on a real-time basis.
The device also helps us carry out various activities such as target management, reporting, and
assurance. Additionally, we applied this device to several kt office buildings to collect energy data
for the Building Energy Management System (BEMS) more systematically.
Energy Target Management Policy

kt is participating in the Ministry of Land, Transportation and Maritime Affairs’ Energy Target
Management trial project in the building sector. The first of many 5-year energy conservation
targets were established in concert with 12 institutions with high energy consumption levels. kt
signed the 1st 5-year trial project agreement to achieve its 1st target by 2014. The building with
the most energy consumption as of 2009 was selected for the project, which was Hyehwa Branch
building with 8,000 TOE. Another non-branch building target was Bundang IDC with 21,000 TOE.
Investment in the Smart Grid Business

Smart Grid Project
kt participates in the Ministry of Knowledge Economy’s Jeju Demonstration Complex project
Implementation Plan
related to Smart Grids. The project, which will approximately cover 6,000 homes in Jeju will be
Target Details implemented from May 2009 to May 2013. The project aims at enhancing energy usage by utilizing
May 2010 Monitoring of 200 homes new and renewable energy sources and energy storage facilities. kt is implementing this project
Monitoring & control of through the kt Consortium comprising of 14 corporations and 4 consignment institutions.
May 2011
1,000 homes
May 2012
Provide KEPCO power Use of Highly Efficient Equipment
trade services
We are now engaged in a company-wide effort to maximize energy efficiency. As heating and
May 2013 Provide services linked to U-city
cooling facilities are thought of as a major source of energy consumption and GHG emission,
we are replacing the existing systems with those that have energy-saving heat pumps. We are
also replacing halogen and incandescent lights, with LED lamps. In addition, we are now using
thermally insulated glass, triple-component glass, double-glazed windows, higher-efficiency
insulation materials, and cool thermal energy storage. Importantly, the “smart-heating” controller
system has proven to be outstanding in lowering energy consumption.
Applying the Insulation Film

In August 2010, kt applied insulation film on window glasses to enhance cooling / heating
efficiencies in some of its buildings that include Goyang office (2,290m2) and Changwon office
(334m2). The insulation film resulted in improved heating / cooling efficiencies.
Reduced Power Consumption of IT Equipment

We have applied green ICT technology to our telecom infrastructure. In 2009, we lowered electricity
consumption by 5.1% by installing Fiber To The Home communication facilities, implementing
stricter thermal standards for telecom systems, and consolidating telecom centers. We plan to extend
the service coverage area of our telecom centers from the current 4km radius to a 50km radius by
2015, reducing power consumption by up to 40%. We will also increase the power efficiency of our
telecom network by replacing existing switches and the current wireless network with 3G systems.
82
Wired/Wireless Communications Infrastructure & Data Center Energy Optimization
kt trys to achieve communications infrastructure and data center energy optimization. A good
example is the broadening of the station coverage project. By downsizing existing communications
stations and simplifying the network structure, a more efficient network management has
been made possible. The project to convert the wireless network infrastructure into a clouding
environment is being initiated.
Resource Recycling
Water Usage Management Water Use
A washbasin water saving device is required to be installed in all new, extension or remodeling
Category 2008 2009 2010
buildings to reduce water consumption. By replacing filters in cooling equipment and regularly
Water Use
cleaning pipes, water usage efficiencies have been improved. Simultaneously, to reduce water (tons)
2,721,622 2,775,565 3,014,704
consumption, various campaigns such as reducing daily water consumption by 1.5 liters per person,
Workforce
31,780 31,264 36,318
decreasing the carbon footprint, and distributing mug cups were held throughout the year. As the (persons)
number of people in the building increased, water consumption also increased by 8.6% in 2010. Water use
per person 85.64 88.78 83.01
However, water consumption per person decreased by 6.5%. The water reduction management (tons)
target for 2011 has been set at 120,588 tons, a 4% decrease compared to the previous year.
Recycling of Telecom Devices Sales of Disused Materials (Unit: tons)

To increase the collection rate of old phones, kt provides a set amount in subsidies for new phone
Category 2008 2009 2010
purchases when a customer returns their old handset. Returned old handsets are reused as rental
Waste cable 7,343 6,209 4,530
phones for those who lost their handsets. In addition, when customers subscribe to broadband
Waste
Internet or ITPV services, kt rents modems and reclaims them back when customers cancels 3,029 2,751 2,965
equipment
services. Waste battery 3,656 1,797 2,414
Others 442 427 315

Waste Disposal Total 14,470 11,184 10,224
kt disposes of used materials such as batteries, cables and machineries from construction sites
and buildings according to pertinent laws. Designated waste materials that contain harmful
substances such as waste fuel and waste acid are registered into the allbaro system (www.allbaro.
or.kr). Cables and other machineries are sold to recycling firms to be reused and recycled as raw
materials, while empty cable drums are sold back to cable suppliers for repurchase.
Waste Disposal Expenses of Subcontract
Waste Disposal Process Construction (Unit: KRW 100 million)
Logistics center Waste handling firm Produce finished product

(Produce raw material)
Waste cables Copper Cable, copper products

Installations (telecom infrastructure, machinery) Gold, silver, iron, aluminum Precious metal 6.1 6.1
Waste batteries Lead Batteries 4.3
Empty drums Cable drums

Vehicles and generators Reuse (for reused car sales, and for use in plants and ships)
Designated Waste Material Treatment by Construction Contractor

For construction wastes, the projected quantity is calculated from the design stage and the
2008 2009 2010
treatment expenses are included in the contract. All wastes from construction are consigned to
a waste disposal company for treatment by the constructor contractor. Payment is concluded
after the contractor compares the waste yield amount to the actual consigned waste quantity.
In case the waste quantity is too small that the disposal company refuses to collect the waste,
the contractor must place the wastes in storage and must get an annually contracted disposal
company to treat the wastes.
83
Energy Efficiency and Resource Recycling
90
Office buidlings that equip
Realizing Green Office videoconferencing room
GHG Emission Reduction through Videoconferencing
Videoconferencing helps reduce carbon emissions as well as increase productivity by accelerating
decision-making and cutting travel costs. The DigiEco estimates that replacing 20% of all
international and domestic meetings with videoconferencing would bring an annual savings
of KRW13.7 billion, as a result of reduced carbon emissions, lower travel costs and increased
productivity. Conventional videoconference solutions require high initial installation costs and
pose quality issues such as audio-video lag. We adopted a PC-based model to address these
Videoconferencing at kt headquarters shortcomings. These systems have been installed in 90 offices of our office buildings to ensure
all employees, even those who are working away from the office, can use their PCs to participate
in meetings.
Smart Working Center

By establishing a Smart Working Center in all major buildings, employee work efficiencies have
improved, while mobile combustion has been reduced. In addition, with the establishment of a
network platform office environment for working at home, kt is encouraging all employees to
participate in and practice ‘Green IT.’
Building an e-Office Environment

Smart Working Center To reduce the use of resources, kt has built an “e-Office” environment. e-Office refers to an optimal
working environment that minimizes environmental impact by adopting information technology.
We shifted a paper-based offline approval process to an electronic business approval system, and
operate an e-cabinet system whereby various documents are stored and managed as electronic
files rather than as paper printouts stored in file cabinets.
kt’s Energy Saving Results

Minus (-) Energy, Plus (+) Love Campaign
kt is simultaneously reducing energy and actively participating in the Ministry of Knowledge
Accumulated
Participat-
Reduction
amount Economy’s ‘Minus (-) Energy, Plus (+) Love’ campaign. This social contribution campaign is to
results Remarks
ing stations (KRW
(Mwh)
thousand)
practice energy conservation while providing energy welfare to the lower income class. The energy
2008 220 3,024 32,400
amount saved at homes and office buildings during the months of July and August, when energy
Selected consumption is highest, can be converted to pay for heating cost for needy neighbors under the
2009 2,442 25,380 124,000 as no. 1
campaign participant’s name. In 2010, 3,510 stations, including main and ancillary, participated
company
2010 3,510 8,075 40,000 1st

in the campaign (an increase of 1,068 stations over the previous year), achieving a reduction of
Total 6,172 36,479 196,400
8,095,000Kw (carbon emission of 3,800 tons) during the peak months of July and August. By
reducing energy expenses by KRW800 million (in concert with company-wide energy reduction
activities), kt was selected 1st for two consecutive years among the participating companies.
Paperless Campaign
We are promoting the use of AnyFax, an e-fax system, as part of an ongoing drive to achieve a
truly paperless office environment. With the introduction of the e-fax system, monthly paper use
per person dropped by approximately 50 sheets (based on A4 size paper).
iPad provided to all our employees
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Environment-Friendly Products
Green PC Solution
The Green PC Solution consists of layers of PCs. 60 independent PCs are stacked on a rack forming
one single multi PC system. Unlike individual PCs, efficient energy management is possible. At
the same time it is possible to eliminate fine dust and other pollutants emanating from individual
PCs. In addition, maintenance is more convenient and heating/cooling energy can be reduced
by using the heat energy from the clustered PCs. This helps save summer cooling expenses by
5%, while reducing CO2 emissions by 500 tons.
Green PCs established in Honam University
Automatic Standby Power Termination PC System
This system allows the user to automatically terminate standby power when the PC is not in use.
Monitor, speaker and printer power can be terminated automatically along with the desktop
PC. In addition, by pressing the green button the standby power is instantly terminated and by
pressing the zero button, it has the same effect as disconnecting the plug.
Environment-Friendly Services
Videoconferencing Service
kt’s videoconferencing service received the Green Business certificate in October 2010. Without Participating in meeting with
various types of devices
using expensive equipment, close distance communications and cooperation is possible with 2G, 3G phone
diverse devices, helping to contribute to cost reduction and reduction in environmental impact. Fixed line phone Telephone
PC H/W codec
Wireless Based Real Time Energy Consumption Remote Monitoring Service

HD
This is a nationally ‘Green’ certified service that enables users to monitor real time through a videoconferencing
service
wireless device the energy consumption and greenhouse gas emissions emanating from homes, Executive Research
conference room center
offices and buildings. Using smartphones, the energy consumption and CO2 emissions status Research center
can be monitored, analyzed and managed without the need for installing expensive meters,
Remote education and seminar Multi-party real-time cooperation
helping reduce costs. When participating in the greenhouse gas target management policy and
emissions trading, it can be used as a platform service enabling the user to link with various
energy reduction solutions at home and at work.
3G +
Smartphone
(e.g. iPhone)
CO2
Light PC Air-conditioner Temperature,

humidity, CO2 Display
Data collection device
(e.g. olleh TV)
Internet
Cloud server
uCloud CS(Compute Service)

uCloud CS is a cloud based virtualization server. Without having to pay for physical server purchases
or rentals, users only need to pay for the amount utilized. This is an eco-friendly product that helps
solve increased energy consumption as the demand for Internet usage goes up. The service can be
used 5 minutes after subscribing. Diverse value added services are provided including automatic
management, security, auto-scaling, etc. It also enhances convenience for individual developers, B2B
related IT solution development companies and IT server environment operating companies.
85
651.2
Energy Efficiency and Resource Recycling KRW billion
Realizing Green Office Green investment
Participating in Government Projects for Green Growth
We are participating in various projects in step with the Korean government’s green growth drive.
Examples are a pilot project to establish targets for building energy use in cooperation with the
Ministry of Land, Transport and Maritime Affairs; a pilot carbon emissions trading project with the
Ministry of Environment; and a project to set energy-use targets in the broadcasting and telecom
sectors with the Korea Communications Commission. In addition, we took the initiative to form
the kt Consortium in order to participate in the Jeju Island Smart Grid Test-bed project, which was
kt Smart Green Center launched in 2009 by the Ministry of Knowledge Economy. We established the kt Smart Green
Center on the island; this Center monitors energy management systems, analyzes energy use
patterns, controls energy distribution services, and sells electricity.
Fund for Green Growth

kt created a KRW30 billion kt-Gyeonggi Investment Fund for Green Growth in cooperation with the
Gyeonggi Provincial Government. The fund is designed to provide financial and technical support to
venture companies or startups in the region that are developing energy-saving technology.
kt’s Green Green Investment

Investments (Unit: KRW 100 million)
kt’s environmental investment continued to increase. In 2010, the amount jumped to KRW651.2
Category 2008 2009 2010
billion from KRW113.7 billion in 2009 and KRW48.8 billion in 2008. Regarding facility investments, we
Service 359 849 6, 035
concentrated on establishing simple network and cloud data centers, and projects such as the green
Facility 129 288 477
IDC pilot project, and the mico-management of energy efficiency project. Meanwhile, investments for
Total 488 1,137 6,512
services included the Smart Grid project on Jeju Island, visual image communications, and electricity-
care service.
Green Procurement
kt participated in the Voluntary Agreement for Green Procurement for IP products. We reflect
environmental aspects in our specification requirements for procuring telecommunication facilities.
We help our suppliers minimize the environmental impacts of their products from the stage of
product development, by providing them with guidelines on environmental friendliness of surface
treatment, potential for recycling or reuse, and minimization of packaging materials. To this end, we
put green labels on our consumable materials. We also update the green information on the labels
twice a month, based on the data provided by the Korea Environmental Industry & Technology
Institute while conducting education to promote the purchase of eco-friendly products.
Green Procurement Amount
2008 2009 2010

Category
No. of Amount No. of Amount No. of Amount
items (KRW million) items (KRW million) items (KRW million)
Eco- Eco-Mark Certificate 1,009 5,899 408 1,400 645 4,308

products GR Mark Certificate 102 34 42 11 - -
Energy Saving Mark 46 566 18 43 106 568
Reducing Hazardous
Other eco- Substances 33 273 16 48 - -
products
Reducing Wastes 8 15 5 6 - -
Others 578 1,047 317 269 - -
86 Total 1,776 7,834 806 1,777 751 4,876

Measures to Meet International Environmental Standards
kt was the first domestic communications company in Korea to receive the environmental
management international standard ISO14001 certification in the construction and property
sector in 2007. By practicing eco-management systems, kt has secured transparency and
credibility in its environmental performance. To acquire ISO14001 in all sectors of the company,
kt is placing its effort on securing standardization in methodologies and systems that ensure
continuous environment improvements. Aggressive eco-management implementation is being
carried out through environment training, internal audits and company-wide campaigns.
First in the Communications Industry to Receive the Green

Technology & Business Certification
kt is continuously carrying out research & development in the eco-friendly communications
sector to help develop and expand Green IT. As a result, kt was the first in the communications
industry to receive 7 Green Technology & Business Certificates from the government.
Home Network Technology Using Zigbee/PLC

Green Technology
kt-Building Energy Management Solution
Certifications (3)
RF/CT based Energy Remote Measurement Technology
3G, IPTV, VoIP linked Video Conferencing Business

Green Business Station broadening to establish Green Communications Infrastructure
Certification (4) Green IDC Establishment Business Utilizing DC Power Technology
Eco-friendly Address Change Business
Participation in Eco-friendly Communications Consultative Groups

to Expand Green IT
To help contribute to green growth on a national level, kt’s CEO was designated to head the Green IT
Consultative Group, a group under the Green Growth Committee, a body acting as a communications
channel with the public and which reports directly to the President of Korea. The CEO is contributing
to the development and promotion of Korea’s eco-friendly green IT technology.
Year-Round Environmental Campaigns

Every year on Environment Day, as part of the company-wide environmental campaign, kt is
spreading the Green Living Practice Guide to make energy conservation and greenhouse gas
reduction an everyday practice. An environment café has been launched to post and share opinions
on implemented cases.
Dream Big 87
87
Established in 1991, kth played a major role in the telecommunications industry through Hitel during the dawn of computer
communications, and was pivotal in developing the Internet environment with its portal site, ‘www.paran.com.’ As kth is
focused on smart mobiles, content disctribution platforms, group synergies and games based on its 4Screen concept, the
company is moving towards becoming a general service provider integrating wired & wireless Internet with digital contents,
in addition to its platform business to secure a sound business base. As a smart mobile company, kth is aggressively moving
ahead through its open platform policy and real time web to strengthen its mobile business including its SNS, LBS and UC
services. Going forward, by integrating supply / demand and distribution channels for various contents and related solutions,
kth a requirement for network operators within the kt group, the company will enhance its overall synergies within the group
http://www.kthcorp.com/ and simultaneously secure new growth engines in preparation for the future.
Social Contribution
As part of the 2010 Lunar New Year and Chuseok festival, kth employees donated gifts received
Sales (Unit: KRW 100 million)
during the holidays to the Nambu Disabilities Welfare Center of Sam Yook Rehabilitation
Center. In addition, through the ‘Haengbok Do Ha Gi (Greater Happiness),’ a voluntary group
1,498
1,338 within the company, employees used the proceeds from iPhone cases sold internally and
membership fees to purchase rice and donate directly to low income senior citizens in
Rice donation by the Greater
Happiness February 2011. kth also established a volunteer site, the ‘erumi” (www.erumi.co.kr) to help
2009 2010 students lacking the benefits of private educational lessons with volunteer teachers.
As a TRS (Trunked Radio System) provider, kt Powertel was initially lanched in 1985 as Korea Port Telephone Corp. Having
launched analog TRS services in 1996 and commercialized nationwide digital TRS services, kt Powertel steadily established
itself as formal TRS service provider. By expanding its service scope to cover mobile phones and wireless data in 2000,
kt Powertel was able to establish itself into a general telecommunications service provider. In 2009, it launched its Dual
Service, a TRS+WCDMA multi-service. This enabled the company to fully position itself as mobile telecommunications service
provider for corporations. Going forward, kt Powertel will firmly position itself as a “No. 1 Group Communication Leader” by
not only providing individual communications means, but also by providing information through the communications
network and adopting an advanced concept towards creating value.
kt Powertel
www.ktp.co.kr
Social Contribution
Starting in 2008, kt Powertel has been carrying out various social contribution activities
targeted towards alienated groups through its internal volunteer group called ‘Power
Angels.’ As of 2010, the company has been aggressively undertaking ‘Love Sharing’ activities,
1,275
especially focused on providing support to estranged children. Financial support has
1,260
been provided to help purchase books for the Children’s Book Play Room and for the
Volunteer activities for
estranged children Development Account (Di Dim Seed Account). The company has been participating in
2009 2010 diverse cultural ‘experience’ activities including attending musicals, making rice cakes,
experiencing farms (rural communities), riding skates, etc. It has also put into practice its
‘IT Sharing’ concept by donating TRS terminals to children welfare centers. kt Powertel has
also actively implemented its ‘Green Sharing’ activities by promoting the collection and
recycling of unused repeaters, and implementing its environment improvement campaign
in all branches nationwide. Every year, employees voluntarily donate to the ‘Love Piggybank.’
Blood donation certificates are collected through donations every year and distributed
to children suffering from childhood cancer. Coal briquettes are also donated to the
underprivileged neighbors every early winter to help them stay warm during the winter
88 season.
kt Networks is a NI specialized company of the kt group, providing ‘total NI (Network Integration) services’ such as network
consulting, installation, operations & maintenance, and ‘IP-based in-building service’ for corporate customers within
buildings. Utilizing its internal installation and operational capabilities, kt Networks is constantly monitoring the changes in
the IT convergence environment to prepare for any circumstances. By concluding exclusive sales agreements with
Polycom, Alcatel Panduit and Fujitsu, the company is providing global standard network equipment to domestic and
overseas customers. To prepare for the future, kt Networks is continuously focused on ‘constructing solar power stations’ and
on ‘ESCO,’ controlling LED green lighting. Recently, through the installation of the BcN in farming and fishing villages and
the olleh tv head-end platform, the company was able to expand its capabilities and create synergies within the kt group. kt Networks
www.ktn.co.kr
Social Contribution
In 2010, by actively forming relations with local children’s centers as part of the Group CSR Sales (Unit: KRW 100 million)
joint project, close relationship with eight centers was formed. For the 2010 ‘Chuseok Love
Sharing’ activity, between September 1st and 17th, visits were made to local children’s centers
3,424
that the company had formed relations with and made donations and carried out diverse 3,244
company-wide programs. In addition, through the Avata Bazaar which was held on September
Delivering rice cakes on
Chuseok holiday 8th 2010, 102 employees donated 161 items to the local children’s center. The proceeds from
the bazaar were used as contributions and as funds for various social contribution activities
under the ‘kt Networks Love Charity.’ 2009 2010
Since establishment in 1994, kt Telecop has grown into a leading security service provider by using kt’s nationwide
telecommunications network and technologies developed in Korea, and led the popularization of the security service.
As a leading service provider, kt Telecop will satisfy customers with more advanced security services.
Social Contribution
Through the internal ‘Love Volunteer’ group consisting of 840 employees, kt Telecop
carried out diverse activities. Starting in October 2010, with the participation of
117 employees, a ‘Volunteer Activity Fund’ was established. The funds collected were kt Telecop
then donated to the local children’s center in December 2010. In addition to forming www.telecop.co.kr
relations with local children’s centers and providing volunteer support, the company
Delivering rice cake soup by Sales (Unit: KRW 100 million)
actively participated in support activities for the estranged neighbors, which included
‘Love Volunteer’ group
participating in ‘Maintaining School Safety’ activities, providing free meals to solitary
senior citizens, and delivering donation funds to children without meals. Utilizing 2,167
kt Telecop’s business characteristics, the company installed unmanned security systems 1,522
for cultural heritages and implemented ‘Cultural Heritage Guard’ activities. As part of
its effort, starting in 2011, unmanned security services were provided for free to
3 cultural heritages, including Heunginji Mun and the National Palace Museum 2009 2010
of Korea. In addition, cultural heritage clean-up activities are being carried out
twice annually across the country. Also, starting in July 2010, the company launched the
‘Dokdo Support Charge Policy’ in addition to implementing a ‘Get to Know Dokdo the
Right Way’ campaign through payment bills, homepage and SNS. Currently, customers
subscribing to the ‘Dokdo Support Charge Policy’ are charged KRW200 monthly extra,
which is reserved as a ‘Dokdo Safeguard Fund.’ In the future, the funds will be donated
to Dokdo related social organizations. kt Telecop also carries out diverse activities
including mountain and river clean-up and traffic control activities.
89
Established in 2006, kt M&S is a communications service distributor that sells wired/wireless communication services and
telecommunications products through a wide range of distribution channels. The company plays a pivotal role in the next-
generation communications convergence market that improves customer convenience by combining wired/wireless
services with services of different industries. kt M&S will strive to become a leading player in the future communications
market as a customer-oriented communications distributor that provides new and differentiated services.
Social Contribution
kt M&S In 2010, approximatley 100 employees participated in seven ‘Love Sharing’ activities which
www.ktmns.co.kr included ‘Love Sharing Coal Briquettes,’ ‘Yangji Hesal Children’s Center volunteering,’ and
delivering food packages to the needy senior citizens. In addition, about 60 employees and
senior management participated in various activities six times a year. Activities included
6,160 cleaning the environment in Gwanak Mountain and Yangjae Stream and planting trees.
Sharing coal briquettes
4,273
Also, employees stating their desire to donate a portion of their monthly salary will have the
desired portion subtracted and saved as a social contributions fund. These funds will be used
as part of the company’s ‘Salary Woosoori Policy’ for needy neighbors. The funds will mostly
be donated to the Yangji Hesal Local Children’s Center (http://www.hesal.org/). The total
accumulated funds amounted to KRW5.8 million in 2010.
2009 2010
kt capital’s main businesses include industrial machinery, construction equipment, high-tech medical systems, auto and IT
equipment lease, installment loans, project financing, business loans, factoring, and IT venture investment. It also develops
quality financial products and services. The company will strive to provide more convenient and differentiated services to
customers by delivering funds for improving kt’s communication services and carrying out various new businesses.
Social Contribution
Various social contribution activities were carried out through the company’s ‘Dasom Nuri’
kt Capital volunteer group. Major activities included educational support for children of branch schools
www.ktcapital.co.kr in the metropolitan area, delivering food packages to senior citizens who live alone and low
income families. As part of its effort to provide educational opportunities for children of multi-
cultural families, kt Capital provided scholarship funds every month to the Mongol School,
Sales (Unit: KRW 100 million) Bazaar held by Dasom Nuri
volunteer group a social corporate cooperative. Also, daily financial support is provided to the L’Arche, an
1,764 international cooperative that helps the disabled support themselves by having the disabled
1,410 live with the non-disabled. The company donated proceeds from a charity bazaar amounting
to KRW5 million. Coal briquettes were provided to the underprivileged neighbors in winter to
help them stay warm during the winter season. Employees voluntarily donate to the ‘Dasom
2009 2010 Nuri Fund’ while the company matches the donation raised by employees.
90
Ever since it was established in 1986, kt Rental has been lending PCs, servers, computational systems, and other types of IT
systems for more than 20 years. The company diversified its business to include costly equipment such as medical equipment,
measuring devices, office automation equipment, and construction equipment, as well as water purifiers and tablet PCs to
provide a wide range of business solutions and resources as a general rental company. In June 2010, kt Rental merged with a
local leading rent-a-car company, Kumho Rent-A-Car. The merger strengthened its position in the domestic rent-a-car market
by enabling it to develop a variety of products and offer differentiated services.
Social Contribution kt Rental

Along with the theatrical group, Boseot (Mushroom), kt Rental planned a play performance www.ktrental.com
with a motive towards ‘Respecting Life’ and ‘Suicide Prevention.’ The disabled and neighbors in Sales (Unit: KRW 100 million)
need that generally do not have the benefits of experiencing cultrual arts were invited to the
6,297
performance to help foster cultural experience. As part of a campaign to help prevent suicides,
which is a social issue, the importance of life is made aware for the disabled and neighbors in
Invitation to cultural event
need. Those participating in the ‘Life Telephone Counselling’ are also provided the opportunity
to enjoy culture. For two weeks in August 2010, with the sponsorship of the Ministry of Health
& Welfare, Association of the Institutes for the Disabled and Korea Institute for Mental Health, 894
4,100 disabled and neighbors in need were provided the opportunity to view the ‘Light the
Fire in the Playground’ play which was held at SsangSsang Nanum Theater in Daehakro. 2009 2010
While providing IT services for the kt group companies, ktds has developed itself through the experience gained from
establishing IT systems and its professional team related to new growth businesses (WiBro, VoIP, etc.), and its world-class
system building technologies including ICIS (World’s largest open platform & large capacity system), NeOSS (Development
and installation of the world’s first MS .Net based integrated operations system), and EDW (Installation of the world’s 3rd largest
capacity system). The company is providing global standard IT service management services based on its acknowledged and
proven capabilities. The company’s capabilities have been acknowledge through CMMI LEVEL 5, the world’s highest level S/W
quality certification, and international standard certification (ISO 20000 Certification) for its ITSM.
ktds
Social Contribution www.ktds.com
Utilizing the expertise of the‘IT Sharing’volunteer group comprising of employees, the company Sales (Unit: KRW 100 million)
initiated IT training for 4 local children’s centers. One-on-one mentoring education was also
held for low income family children. In September 2010, rice purchased from sister villages 3,555
were donated to 271 low income families living in the Yangcheon-gu area, while in October, 2,562
the company helped its sister village harvest sweet potatoes which were then purchased and
IT Sharing volunteer group
donated to 400 low income families in the Yangcheon-gu area. In November, ktds donated 40
computers and computer tables to a nursery. Through the Children’s Foundation, KRW500,000
are provided to 5 children family heads every months as scholarship. 2009 2010
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Since its establishment in 1991, kt Music has focused on four businesses - wired/wireless music, joint music business, store
music, and music contents. Based on its wired/wireless music portal called Dosirak, kt Music plans to carry out convergence
businesses by combining IPTV, IP phone, and IT technology, and become the best music company by 2012. As a subsidiary
of the kt Group that specializes in providing music services, the company will propose a new and unprecedented music
lifestyle while striving to become the leading music company that provides music services so that consumers can enjoy
music anytime, anywhere.
kt Music Social Contribution

www.ktfmusic.co.kr Every month on a Saturday since November 6, 2010, employees have been coming together
to prepare food packages for 1,200 undernourished children and senior citizens through the
‘Food Package Sharing Project.’ The company also formed relations with a children’s center
in the Wooshin area and delivered Chuseok clothes (T-shirts), mushrooms and apples in
September 2010 as part of the company’s Chuseok (Korean Thanksgiving Day) gifts. In
Sharing meal boxes
addition, to deliver dreams and love to the local children’s center, in conjunction with K-Will
(Korean pop singer), the company gathered funds to hold the ‘1st Food Package Sharing
385 401
Showcase.’
2009 2010
kt CS is responsible for customer service in the kt Group, providing services such as the 114 Telephone Number Directory
Service, and call center outsourcing, and CS Academy. On the back of differentiated competitiveness in CS services, the
company ranked top in the call center industry in terms of sales and received the Presidential Award of Korean Service Quality
in 2007 for the first time among call center companies in Korea. The company’s excellent operation of “120 Dasan Call Center”
of Seoul City has been widely acknowledged and has become the benchmark for foreign public institutions. Under the 2015
vision of “The Best Customer Service Provider,” the company will achieve customer services that exceed customer needs.
kt CS Social Contribution
www.ktcs.co.kr kt CS has been involved in various sharing activities based on four themes, Dream, Culture,
Hope and Love. As part of Dream activities, employees visit nurseries to provide educational
support and to help maintain nursery facilities. In July 2010, through the ‘Greater Hope Day
Hof’ which was initiated in cooperation with Save-the-Children, the company was able to
3,539
3,102
collect KRW3 million in profits. The proceeds were donated as Entrusted Children Help funds.
Phone etiquette program
For Culture, a ‘Colorful Korea’ program is held every month for wives of multi-cultural families.
Financial support is provided to the wives as business support. For Hope, seven business
divisions across the country and 7 farm villages formed relations with the motto, ‘Beautiful
2009 2010 Coexistence between City and Farm Village.’ In 2011, the company purchased harvested
crops from these villages and donated to the neighbors in need. This way, it’s a 3-way win-win
situation for the company, farm village and the neighbors in need. Last but least, Love brought
Voice recording for the visually employees in helping senior citizens living near the company. In connection with the Ministry
impaired
of Health & Welfare, the company participated in the ‘Solitary Senior Citizen Continuing Love
Connection’ project in 2011 to help prevent solitary senior citizens from committing suicide.
Other pro bono activities included volunteers helping input Braille to create Braille books with
the help of the local Braille library. Employees also volunteered to voice record books to help
create a voice recording library.
92
92
Established in November 2009 as a marketing specialized company to enhance customer satisfaction, the company has
solutions and professionals in diverse fields ranging from advertisement to distribution and customer satisfaction. Going
forward, utilizing the accumulated customer satisfaction knowhow gained by providing customer service via 114 and the
kt Customer Center, ktis will expand into new joint marketing business areas including advertising, distribution, customer
center solutions, U-Healthcare, etc., in effect becoming the nation’s largest marketing company.
Social Contribution
ktis is carrying out diverse volunteer activities through its ‘Happiness Sharing’ volunteer group. ktis
Volunteer activities are implemented once every year targeted towards 12 organizations that www.ktis.co.kr
ktis has formed relations with. Some of the activities include donating and delivering coal
briquettes to solitary senior citizens and disabled families. ‘Hope’ booklets are also donated Sales (Unit: KRW 100 million)
to prison facilities for the imprisoned. In addition, in accordance to the MOU signed with the
Phone calls to solitary
senior citizens Ministry of Health & Welfare in December 2010, 494 employees will make 12,000 salutation 3,491
and information providing phone calls to solitary senior citizens every year. At the same time, 2,884
the company is trying to form relations with seven local children’s centers and a North Korea
Escapee Children’s Help Center. Voice recording volunteer activities are also being carried out
by recording books for the deaf and donating the recorded contents to organizations for the
disabled. 2009 2010
SkyLife is the only digital satellite broadcasting company in Korea. Through a high-tech digital satellite broadcasting system,
the company provides high quality HD Broadcasting services. It also launched the world’s first 24 hour 3D channel. SkyLife
also provides the first domestic PVR Service, the countries first most recent NVOD service, two-way TV service, and EPG
(Electronic Program Guide). With the conversion to digital in 2012, SkyLife will be able to secure 5 million members. Digital
contents that cater to the needs of its customers will be secured. The company will grow into a leading comprehensive digital
media company by providing fun and happiness to its customers.
SkyLife
Social Contribution
www.skylife.co.kr
To guarantee the rights of viewing public broadcasting, in conjunction with various
government organizations such as KBS, local governments and broadcasting commission, Sales (Unit: KRW 100 million)
expenses were shared to install kt satellite video receivers to 13,514 families in poor reception
4,310
areas. The total financial support provided for the reception equipment, installation expenses 3,975
and transmission/reception support expenses came to a few billion Korean Won. In addition,
Volunteer activity at senior
citizen center the company continued to carry out participation-focused social contribution activities
by providing personnel and material support to low income families and welfare facilities
through its Rainbow Volunteer Group. At the same time, to support neighbors in need,
the company actively participates in diverse activities including coal briquette delivery, rice 2009 2010
donations, food package donations for undernourished children, Kimchi support for senior
citizen facilities and support for ‘Happy4000,’ a social enterprise.
Establishing receivers in poor
reception area
93
Scope and objectives
kt commissioned Two Tomorrows (Asia) Limited to undertake independent assurance of its 2011 Sustainability Report.
The assurance process was conducted in accordance with AA1000AS (2008). We were engaged to provide moderate level, Type 1 assurance, which includes evaluation of
adherence to the AA1000APS (2008) principles of inclusivity, materiality and responsiveness (the Principles).
We undertook no checking of sustainability performance data and consequently offer no assurance over performance data or associated claims included in the Report.
Responsibilities of the directors of kt and of the assurance providers

The directors of kt have sole responsibility for the preparation of the Report. In performing our assurance work, our responsibility is to the management of kt. However our
statement represents our independent opinion and is intended to inform all of kt’s stakeholders. We adopt a balanced approach towards all of kt’s stakeholders.
We have no other contract with kt and this is the first year that we have provided independent assurance. We were not involved in the preparation of any part of the
Report. Our team comprised MinGu Jun, project leader, Todd Cort, Principal Consultant, as well as InMog Yang and YoungJae Ryu. Further information, including individual
competencies relating to the team can be found at: www.twotomorrows.com.
Basis of our opinion

We undertook the following activities.
• Review of kt’s process for identifying and evaluating material issues.

•Benchmark research based on the previous year’s sustainability report to compare the issues commonly seen as significant by peers with those identified through the
kt materiality process.
• Interviews with 5 executive management team members and managers responsible for managing non-financial issues in Bundang, Gwanghwamun, Seocho offices.
Interviewees were designated by kt.
• Sampling review of supporting evidence for key claims in the Report.
Findings
We reviewed and provided feedback on drafts of the Report and where necessary changes were made. On the basis of the work undertaken, nothing came to our attention
to suggest that the Report does not properly describe kt’s adherence to the Principles of the AA1000APS.
Observations
Without affecting our assurance opinion we also provide the following observations.
kt demonstrates a strong approach to sustainability governance. However further efforts could be such as designating a director responsible for the management of key
sustainability issues, and reporting more explicitly on the relationships and reporting structures among the key governance bodies such as the board of directors, CSR
committee, working committee and CSR task force team.
We recommend that kt clarify how the management activities described in the Highlights section of the Report are relevant to sustainability challenges, and how these
activities contribute to the achievement of kt’s vision of becoming a ‘Global ICT Convergence Leader’ in terms of managing risks and opportunities.
Inclusivity concerns the participation of stakeholders in developing and achieving an accountable and strategic response to sustainability.
• We recommend that kt document and implement a formal stakeholder engagement process that would enable the identification of stakeholders and the means to
gather stakeholder feedback more systematically. We also recommend that kt more fully discuss the means by which stakeholder feedback is used in its business decision
making processes.
• We recommend that kt introduce more formal and direct stakeholder communication channel to improve the inclusivity of its sustainability governance. One possible
mechanism for this is to convene a stakeholder panel at the senior management level such as the board of directors.
94
Material issues are those which are necessary for stakeholders to make informed judgments concerning kt and its impacts.
• While the Report includes a materiality matrix, the methodology underlying the matrix as well as the assumptions and thresholds for determining what is material are not
defined. We recommend that kt describe the materiality process including the criteria in future reports.
• Current material issues defined by kt include ‘stakeholder engagement’, ‘environmental management system’, ‘CS management system’ and ‘brand value’. For many
stakeholders, these are management approaches and not sustainability issues. In future materiality assessments, we recommend that kt redefine these issues to align with
more clear sustainability issues such as ‘climate change’, ‘digital divide’, ‘work life balance’, ‘supply chain CSR’, etc.
• We recommend that kt expand the current discussion of operational waste recycling to include improvement of product recyclability and take-back schemes of products
sold to customers.
Responsiveness concerns the extent to which an organisation responds to stakeholder issues

• We recommend that kt establish and implement more extensive approach to assess and manage labor rights, environmental performance, health and safety and
other material issues of suppliers to promote responsibility in the supply chain. A first step might be to include these requirements in the standard purchasing contract
language.
• k t’s performance such as growing energy use, injury rates and water usage shows that the management response to the discussed material issues in the report have not
yet achieved the desired improvement in performance. In these cases, kt should provide relevant cause analysis and improvement plan for the subjects. Rather than a
qualitative discussion of these challenges, we also recommend more practical reporting through the analysis and explanation of the performance challenges as well as
discussion of how the company sets new targets.
• We recommend that kt improve responsiveness by providing objective information and kt’s official position on the negative issues that has been raised by stakeholders
including the media.
Two Tomorrows (Asia) Limited

Seoul, Korea
June 29, 2011
Jason Perks MinGu Jun Todd Cort InMog Yang YoungJae Ryu
Project Director Project Leader Principal Consultant Lead Associate Lead Associate
Two Tomorrows (Asia) Limited trading as Two Tomorrows was formed from the merger of Csrnetwork and Sd3 in January 2009, Two Tomorrows is an international consultancy that helps companies to perform better and create value by doing
business in a sustainable way. www.twotomorrows.com
95
● Reported ◐ Partly reported ○ Not reported ◇ Not available
No. Indicators Page Remark

Profile
Strategy and 1.1 Statement from the most senior decision-maker of the organization about the relevance of sustainability to the organization and its strategy 2~3 ●
Analysis 1.2 Description of key impacts, risks, and opportunities 2~3 ●
Organizational Profile
2.1 Name of the organization 12 ●

2.2 Primary brands, products, and / or services 88 ~ 93 ●
2.3 Operational structure of the organization 12 ~ 13 ●
2.4 Location of organization’s headquarters 12 ●
Number of countries where the organization operates, and names of countries with either major operations or that are specifically relevant to the sustainability
Organizational 2.5 13 ●
reporting
Profile
2.6 Nature of ownership and legal form 12 ~ 13 ●
2.7 Markets served(Economic Performance) 12 ~ 13, 88 ~ 93 ●
2.8 Scale of the reporting organization 12 ~ 13 ●
2.9 Significant changes during the reporting period regarding size, structure, or ownership Not available ◇
2.10 Awards received in the reporting period 99 ●
Report Parameters
3.1 Reporting period Cover page ●
3.2 Date of previous report Cover page ●
Report Profile
3.3 Reporting cycle Cover page ●
3.4 Contact point for questions regarding the report or its contents Cover page ●
3.5 Process for defining report content Cover page ●
3.6 Boundary of the report Cover page ●
3.7 State any specific limitations on the scope or boundary of the report Cover page ●
Report Scope and
3.8 Basis for reporting that can significantly affect comparability from period to period and / or between organizations Cover page ●
Boundary
3.9 Data measurement techniques and the bases of calculations Cover page ●
3.10 Explanation of the effect of any re-statements of information provided in earlier reports, and the reasons for such re-statement Not available ◇
3.11 Significant changes from previous reporting periods in the scope, boundary, or measurement methods Not available ◇
GRI Content Index 3.12 Table identifying the location of the Standard Disclosures in the report 96 ~ 97 ●
Assurance 3.13 Policy and current practice with regard to seeking external assurance for the report 96 ~ 97 ●
Governance, Commitments and Engagement
4.1 Governance structure of the organization 15 ●
4.2 Indicate whether the Chair of the highest governance body is also an executive officer 15 ●
4.3 The number of members of the highest governance body that are independent and / or nonexecutive members 15 ●
4.4 Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body 55 ◐
4.5 Linkage between compensation for members of the highest governance body, senior managers, and executives 15 ◐
Governance 4.6 Processes in place for the highest governance body to ensure conflicts of interest are avoided 15 ◐
4.7 Process for determining the composition, qualifications, and expertise of the members of the highest governance body and its committees 15 ◐
Internally developed statements of mission or values, codes of conduct, and principles relevant to economic, environmental, and social performance and the
4.8 14, 16 ~ 17 ●
status of their implementation
Procedures of the highest governance body for overseeing the organization’s identification and management of economic, environmental, and social
4.9 15, 69 ◐
performance
4.10 Processes for evaluating the highest governance body’s own performance 15, 69 ◐
4.11 Explanation of whether and how the precautionary approach or principle is addressed 20 ~ 21 ●
Commitments to
4.12 Externally developed economic, environmental, and social charters, principles, or other initiatives to which the organization subscribes or endorses 16, 99 ●
External Initiatives
4.13 Memberships in associations (such as industry associations) and / or national / international advocacy organizations 99 ●
4.14 List of stakeholder groups engaged by the organization 4 ●
Stakeholder 4.15 Basis for identification and selection of stakeholders with whom to engage 4 ●
Engagement 4.16 Approaches to stakeholder engagement, including frequency of engagement by type and by stakeholder 4 ◐
4.17 Key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key topics and concerns 4~5 ◐
96

Disclosure on Management Approach
EC_DMA Economy 22 ●
PR_DMA Customer 34 ●
LA_DMA Labor 44, 56 ●
HR_DMA Human Rights 54 ●

SO_DMA Society 66 ●
EN_DMA Environment 78 ●
Economy
EC1 Direct economic value generated and distributed 26 ~ 27 ●
Economic EC2 Financial implications and other risks and opportunities for the organization’s activities due to climate change 81 ◐
Performance EC3 Coverage of the organization’s defined benefit plan obligations 49, 54 ●
EC4 Significant financial assistance received from government 27 ●
EC5 Range of ratios of standard entry level wage compared to local minimum wage at significant locations of operation 45, 49 ●
Market Presence EC6 Policy, practices, and proportion of spending on locally based suppliers at significant locations of operation 58 ~ 65 ●
EC7 Procedures for local hiring and proportion of senior management hired from the local community at locations of significant operation 46 ◐
Indirect Economic EC8 Development and impact of infrastructure investments and services provided primarily for public benefit through commercial, in kind, or pro bono engagement 27, 60 ~ 61, 70, 74 ●
Impacts EC9 Understanding and describing significant indirect economic impacts 10, 70, 74 ●
Environment
EN1 Materials used by weight or volume 100 ●

Materials
EN2 Percentage of materials used that are recycled input materials 83 ◐
EN3 Direct energy consumption by primary energy source 81 ●

EN4 Indirect energy consumption by primary source 81 ●
Energy EN5 Energy saved due to conservation and efficiency improvements 84 ●
EN6 Initiatives to provide energy-efficient or renewable energy based products and services, and reductions in energy requirements as a result of these initiatives 82, 85 ●
EN7 Initiatives to reduce indirect energy consumption and reductions achieved 84 ●
EN8 Total water withdrawal by source 83 ●
Water EN9 Water sources significantly affected by withdrawal of water 83 ●
EN10 Percentage and total volume of water recycled and reused 83 ◐
EN11 Location and size of land owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas 75 ◐
Description of significant impacts of activities, products, and services on biodiversity in protected areas and areas of high biodiversity value
EN12 75 ◐
outside protected areas
Biodiversity
EN13 Habitats protected or restored Not available ◇
EN14 Strategies, current actions, and future plans for managing impacts on biodiversity Not available ◇
EN15 Number of IUCN Red List species and national conservation list species with habitats in areas affected by operations, by level of extinction risk Not available ◇
EN16 Total direct and indirect greenhouse gas emissions by weight 81 ●
EN17 Other relevant indirect greenhouse gas emissions by weight 81 ●
EN18 Initiatives to reduce greenhouse gas emissions and reductions achieved 81 ◐
EN19 Emissions of ozone-depleting substances by weight 81 ◐
EN20 NO, SO, and other significant air emissions by type and weight - ○
Emissions,
Effluents and EN21 Total water discharge by quality and destination - ○
Waste EN22 Total weight of waste by type and disposal method 83 ●
EN23 Total number and volume of significant spills No significant spills ◇
Weight of transported, imported, exported, or treated waste deemed hazardous under the terms of the Basel Convention Annex I, II, III, and VIII, and percentage of Not significantly related to environmental
EN24 ◇
transported waste shipped internationally impacts caused by our operation
Identity, size, protected status, and biodiversity value of water bodies and related habitats significantly affected by the reporting organization’s discharges of water Not significantly related to environmental
EN25 ◇
and runoff impacts caused by our operation
Products and EN26 Initiatives to mitigate environmental impacts of products and services, and extent of impact mitigation 82, 85 ●
Services EN27 Percentage of products sold and their packaging materials that are reclaimed by category 83 ◐
Compliance EN28 Monetary value of significant fines and total number of nonmonetary sanctions for noncompliance with environmental laws and regulations - ○
Significant environmental impacts of transporting products and other goods and materials used for the organization’s operations, and transporting members
Transport EN29 81 ◐
of the workforce
Overall EN30 Total environmental protection expenditures and investments by type 86 ●
97

Labor
LA1 Total workforce by employment type, employment contract, and region 46, 54 ●
Employment LA2 Total number and rate of employee turnover by age group, gender, and region - ○
LA3 Benefits provided to full-time employees that are not provided to temporary or part-time employees, by major operations 49 ●
Labor / Management LA4 Percentage of employees covered by collective bargaining agreements 52 ●

Relations LA5 Minimum notice period(s) regarding operational changes 55 ◐
LA6 Percentage of total workforce represented in formal joint management worker health and safety committees 53 ●
Occupational LA7 Rates of injury, occupational diseases, lost days, and absenteeism, and number of work related fatalities by region 53 ●
Health and Safety LA8 Education, training, counseling, prevention, and risk-control programs in place to assist workforce members, their families, or community members regarding serious diseases 53 ●
LA9 Health and safety topics covered in formal agreements with trade unions 53 ●
LA10 Average hours of training per year per employee by employee category 50 ●
Training and
LA11 Programs for skills management and lifelong learning and assist them Prior Report in managing career endings 50 ◐
Education
LA12 Percentage of employees receiving regular performance and career development reviews 48 ●
Diversity and Equal Composition of governance bodies and breakdown of employees per category according to gender, age group, minority group membership, and other
LA13 46, 54 ●
Opportunity indicators of diversity
Equal Remuneration LA14 Ratio of basic salary of men to women by employee category 48 ◐
Employment LA15 Return to work and retention rates after parental leave, by gender 49, 54 ◐
Human Rights
HR1 Percentage and total number of significant investment agreements that include human rights clauses or that have undergone human rights screening 63, 64 ●
Investment and
Procurement HR2 Percentage of significant suppliers and contractors that have X Insufficient data undergone screening on human rights and actions taken 63, 64 ●
Practices
HR3 Total hours of employee training on policies and procedures concerning aspects of human rights 19, 54, 64 ●
Nondiscrimination HR4 Total number of incidents of discrimination and actions taken 18, 64 ◐
Freedom of Operations identified in which the right to exercise freedom of association and Collective and collective bargaining may be at significant risk, and actions taken
HR5 52, 55 ◐
Association to support these rights
Bargaining Child No operation identified as

HR6 Operations identified as having significant risk for incidents of child labor and measures taken to contribute to the elimination of child labor ◇
Labor having risks of child labor
Forced and Operations identified as having significant risk for incidents of forced or compulsory labor, and measures to contribute to the elimination of forced or compul- No operation identified as
HR7 ◇
Compulsory Labor sory labor having risks of forced labor
Security Practices HR8 Percentage of security personnel trained in the organization’s policies or procedures concerning aspects of human rights 19 ◐
Indigenous Rights HR9 Total number of incidents of violations involving rights of indigenous people and actions taken No relevant cases ◇
Assessment HR10 Percentage and total number of operations that have been subject to human rights reviews and/or impact assessments 52 ◐
Remediation HR11 Number of grievances related to human rights filed, addressed and resolved through formal grievance mechanisms 52 ●
Society
Community SO1 Nature, scope, and effectiveness of any programs and practices that assess and manage the impacts of operations on communities 68 ~ 77 ●
SO2 Percentage and total number of business units analyzed for risks related to corruption - ○
Corruption SO3 Percentage of employees trained in organization’s anticorruption policies and procedures 18 ~ 19 ●
SO4 Actions taken in response to incidents of corruption 18 ~ 19 ●
Public Policy SO5 Public policy positions and participation in public policy development and lobbying 18 ~ 19 ◐
Behavior SO6 Total value of financial and in-kind contributions to political parties, politicians, and related institutions by country - ○
Anti-Competitive SO7 Total number of legal actions for anticompetitive behavior, anti-trust, and monopoly practices and their outcomes 64 ●
Compliance SO8 Monetary value of significant fines and total number of non-monetary sanctions for noncompliance with laws and regulations 64 ◐
Local SO9 Operations with significant potential or actual negative impacts on local communities 76 ◐
Communities SO10 Prevention and mitigation measures implemented in operations with significant potential or actual negative impacts on local communities 76 ◐
Product Responsibility
Life cycle stages in which health and safety impacts of products and services are assessed for improvement, and percentage of significant products and
Customer Health PR1 43 ●
services categories subject to such procedures
and Safety
PR2 Total number of incidents of non-compliance with regulations and voluntary codes concerning health and safety impacts of products and services during their life cycle 41 ◐
PR3 Type of product and service information required by procedures, and percentage of significant products and services subject to such information requirements 38 ~ 39 ●
Product and
PR4 Total number of incidents of non-compliance with regulations and voluntary codes concerning product and service information and labeling - ○
Service Labeling
PR5 Practices related to customer satisfaction, including results of surveys measuring customer satisfaction 37, 43 ●
PR6 Programs for adherence to laws, standards, and voluntary codes related to marketing communications 38 ~ 39 ●
Marketing
Communication Total number of incidents of non-compliance with regulations and voluntary codes concerning marketing communications, including advertising, promotion,
PR7 - ○
and sponsorship
Customer Privacy PR8 Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data 41 ◐
Compliance PR9 Monetary value of significant fines for noncompliance with laws and regulations concerning the provision and use of products and services 64 ●
98
We voluntarily reflected the International Standard, ISO 26000:2010 in our sustainability report. We, as a global corporate citizen, will spare no efforts to
improve our sustainability management by taking into consideration seven core subjects of ISO 26000 – organizational governance, human rights, labor
practices, environment, fair operating practices, consumer issues, and community involvement and development.
● Reported ◐ Partly reported ○ Not reported
Core subjects and issues Page Application Level
Organizational governance Decision-making processes and structures 2 ~ 5, 12 ~ 17, 20, 21, 69 ●
Due diligence 4, 5 ◐
Human rights risk situations - ○
Avoidance of complicity 63, 64 ●
Resolving grievances 52 ●
Human rights
Discrimination and vulnerable groups 46, 54, 72, 73 ●
Civil and political rights 41, 52, 76 ◐
Economic, social and cultural rights 52 ●
Fundamental principles and rights at work 48, 52, 54 ●
Employment and employment relationships 46 ●
Conditions of work and social protection 46, 54 ●
Labor practices Social dialogue 52, 53, 55 ●
Health and safety at work 53 ●
Human development and training in the workplace 50, 51 ●
Prevention of pollution 80 ~ 85 ●
Sustainable resource use 82, 83, 85 ●

The environment
Climate change mitigation and adaptation 81 ●
Protection of the environment, biodiversity and restoration of natural habitats 75 ◐
Anti-corruption 18, 19, 64 ●
Responsible political involvement 18, 19 ◐
Fair operating practice Fair competition 63, 64 ●
Promoting social responsibility in the value chain 60 ~ 64 ●
Respect for property rights 58, 59 ◐
Fair marketing, factual and unbiased information and fair contractual practices 38, 39 ●
Protecting consumers’ Health and safety 41, 42 ●
Sustainable consumption 83, 85 ●
Consumer issues Consumer service, support, and complaint and dispute resolution 37, 39, 43 ●
Consumer data protection and privacy 41 ●
Access to essential services 40, 76 ●
Education and awareness 42, 43, 83 ●
Community involvement 10, 70, 74 ●
Education and culture 61, 69 ~ 75 ●
Employment creation and skills development 46, 74 ●

Community involvement
Technology development and access 69 ~ 72 ●
and development
Wealth and income creation 26, 27, 49, 54 ●
Health 72 ●
Social investment 73, 76, 77 ●
99
• Korea
Korea Research Institute for Competitiveness, Economic Group Council, Network Security Forum, Green Investment Forum Korea, Korea Industrial Safety Association,
Institute of Electronics Engineers of Korea, World Futures Forum, Korea Association of Smart Home, The Federation of Korean Industries, Korea Lasbiburte Information
& Telecom, Korea Association for Telecommunications Policies, Information Technology Forum for Unification, Korea Economic Education Association, The Korean
Economic Association, Fair Competition Federation, Korea Advertisers Association, Korea Digital Media Industry Association, Korean Association for Broadcasting &
Telecommunication Studies, Korea Academic Society of Industrial Organization, Korea Listed Company Association, Korean Society of Consumer Studies, Korea Software
Industry Association, Korea Smart Grid Association, Korean Society for Journalism & Communication Studies, Korea Ubiquitous City Association, Korea Ubiquitous-Health
Association, Korea Association of Natural Disaster Reduction Industries, Korea Radio Promotion Association, Korea Institute of Information Security & Cryptology, Federation
of Korea Information Industries, Telecommunications Technology Association, Korea Association of Information and Telecommunication, Korea Advanced Intelligent
Robot Association, National Intelligence Communication Enterprise Association, Korea Cloud Service Association, Korea Telecommunications Operators Association,
Korea Information and Communication Society, Korea Association for Chief Financial Officers, Korea IT Leaders Forum, CONsortium of CERT (CONCERT), u-KOREA Forum
• Overseas
WFA(Wireless Fidelity Alliance), FMCA(Fixed-Mobile Convergence Alliance), OMA(Open Mobile Alliance), WiMAX Forum, VoiceXML Forum, DSL Forum, WBA(Wireless
Broadband Alliance), TMF(Telecommunication Management Forum), APT(Asia Pacific Telecommunity), ITU(International Telecommunication Union)
Category Indicator Unit 2008 2009 2010 Award Sponsor organization Award date
KRW 100
Operating revenue 117,848 159,062 202,335
million
Embedded mobile best prize Mobile World Congress Feb. 17, 2010
KRW 100
Net income 4,498 5,165 11,719
million
Economy Advertisement of the year
KRW 100 Korea Association of Advertising Agencies Mar. 31, 2010
Capital expenditure 31,503 29,587 30,572 (Internet category)
million
KRW 100 18th Good advertisement award
Tax payment 2,692 1,991 5,718 chosen by consumers, Minister of Korea Advertisers Association Apr. 27, 2010
million
Culture, Sports & Tourism award
CVA (wired phone) points 1.03 1.00 1.04
Proportion of female Small & Medium Business Administration
% 14.86 14.66 14.83 Presidential Award in the category
employees Korea Federation of Small and Medium May 14, 2010
of SME support
Business
Proportion of the disabled % 2.6 2.9 2.4
Employee satisfaction index points 79 79 75 Grand Prize at the Korea Corporate Governance Service
Jun. 30, 2010
KRW 100 2010 Corporate Governance Awards (KCGS)
Welfare spending 4,826 5,092 3,038
million
Society Accident rate % 0.16 0.19 0.22 DJSI World Dow Jones / SAM Sep. 10, 2010
Supplier satisfaction index points 80.2 75.2 77.4
Support for hearing-impaired
persons 30 50 21 Audit Award Korea Listed Company Association Sep. 29, 2010
children
Beneficiaries of IT Sharing persons 453,084 515,286 325,771
No. 1 in four categories (Broadband
Volunteer hours hours 255,219 89,621 114,657 Internet, Internet call, city local call/
KRW 100 long-distance call, international call) KMAC Sep. 29, 2010
Social contribution spending 348 352 370 by Korea Customer Satisfaction Index
million
(KCSI)
Power consumption Mwh 2,493,538 2,302,545 2,314,190
GHG emissions tonCO2 1,200,052 1,116,175 1,128,093 Carbon Management 2010 (Leader
CDP Korea Oct. 21, 2010
in telecommunications industry)
Water use ton 2,721,622 2,775,565 3,014,704
Environment Waste disposal ton 14,470 11,184 10,224 Labor-Management Culture Grand
Ministry of Employment and Labor Nov. 2, 2010
KRW 100 Prize (Presidential Award)
Green investment 488 1,137 6,512
million
KRW 100 Family-Friendly Company Ministry of Gender Equality & Family Nov. 20, 2010
Green procurement 78 17 48
million
100
Reader Survey
We welcome your valuable feedback. Your opinions will be incorporated to improve future editions of our sustainability
report and to enhance our sustainability management effort.
Fax: +82-2-730-0308
E-mail: csr@kt.com
1. Which of the following groups do you belong to?

Shareholder and investment organization Customer Suppliers kt employee Civic group
Government ministry and office Media Research institution / Academia NGO Others ( )
2. For what purpose do you use this report?

Company evaluation Benchmarking Education Information gathering
3. Which parts are you interested in (multiple answers are possible)?

kt 2010 Highlight - Special Issue Sustainability at kt Dream with Shareholders
Dream with Customers Dream with Employees Dream with Suppliers
Dream with Society Dream with Environment CSR activities of kt Group companies
4. Which part needs additional information?

kt 2010 Highlight - Special Issue Sustainability at kt Dream with Shareholders
Dream with Customers Dream with Employees Dream with Suppliers
Dream with Society Dream with Environment CSR activities of kt Group companies
5. Please specify your satisfaction level on each of the following:
Highly disagree Disagree Neutral Agree Highly agree
It provides sufficient useful information ① ② ③ ④ ⑤
It is easy to understand ① ② ③ ④ ⑤
It is trustworthy ① ② ③ ④ ⑤
Design is appealing ① ② ③ ④ ⑤
It enhances kt’s image ① ② ③ ④ ⑤
6. Please give us your opinions on this report and make suggestions for improvement.
Contact Information

(www.kt.com). If you need more information on our
sustainability management, please contact us at the following.
Public Relations Office

100 Sejong-ro, Jongno-gu, Seoul 110-777, Korea
Homepage http://www.kt.com
E-mail csr@kt.com
Tel 82-2-730-0354
Fax 82-2-730-0308
Publisher Suk-Chae Lee

Published by kt
Date of publication July 2011
Planned by CSR Team
Report Outline Mid-term Growth Strategy 6

BOD Chairman Message 2 Improving Rate Structure 7
CEO Message 3 Work & Life Balance 8
Stakeholder Engagement 4 Partnering for Growth 9
Materiality Test 5 Local Community-Focused Social Contribution 10
Promoting Environment-Friendly Management 11
kt’s 2011 Sustainability Report was prepared based CS Management System 36 Great Work Place 46
on the GRI G3.1 guidelines. This report fully satisfies VOC as Strategic Asset 37 Fair Human Management System 48
the quality and quantitative requirements of level Differentiated Service 38 Employee Welfare and Benefits 49
“A” in the GRI G3.1 Application Level Table. As such, Stable Telecommunication Service 40 Human Resource Development 50
kt self declares that the GRI G3.1 Application Level IT Security and Customer Protection 41 Labor-Management Cooperation 52
Solving the Side Effects of Informatization 42 Safety and Health 53
of the 2011 Sustainability Report is at Level “A+”. This
Customer Communication 43 Human Rights 54
self-declaration has been verified as being appropriate
Employee Communication 55
by Two Tomorrows.
Additional Information
[http://www.kt.com]. If you need more information or
have questions on our sustainability management, please
contact us at the following.
Homepage http://www.kt.com
E-mail csr@kt.com
Tel 02)730-0354
Fax 02)730-0308
CSR Team, Public Relations Office
100 Sejong-ro, Jongno-gu, Seoul 110-777, Korea
Report Outline
Objective
This is the sixth issue of kt’s Sustainability Report which is
intended to provide information on our efforts and activities
toward a sustainable world. This report aims at helping our
Black 배경 stakeholders understand our sustainability management
by viewing economic profitability, social responsibility, and
environmental soundness in an integrated manner. We plan
to reflect the voices of our stakeholders to create new values
and implement sustainability management more actively.
Report Framework
This report is largely comprised of four sections such
as sustainability management, economy, society, and
environment. To enhance stakeholders’ understandability,
the triple bottom line section is classified into six parts;
investors, customers, employees, suppliers, society, and
environment. Our sixth sustainability report was prepared
by CSR Team with the cooperation of the working-level staff
from the pertinent teams.
Guidelines and Assurance

This report has been created in reference to the G3.1
standards of Global Reporting Initiative. It also contains
information related to ISO 26000 which was disclosed in
November 2010. To secure inclusiveness, materiality, and
responsiveness, this report received third party assurance.
The assurance statement is on page 94.
Period and Scope

This report covers the period from January 1 to December
31, 2010. It also contains plans for 2011 when deemed
necessary. The reporting scope is the activities and
performances carried out by the business sites in Korea. We
plan to publish the report annually.
This report was printed with bean oil on environmental-friendly paper.

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Report Outline

Guidelines and Assurance

Period and Scope

This report was printed with bean oil on environmental-friendly paper.

Partnering for Growth 58 Social Contribution System 68

Environmental Management System 80 CSR Activities by kt Group Companies 88

With the stipulation of the BOD’s role in the company’s sustainability

Framework for Stakeholder Communication

Stakeholder Communication Channels

Meeting between the CEO and the head of

(3 or 4 times a year) Labour-Management conference at regional level

(three times a year) Institute of Economics and Management

Meetings with local Partner firm CEO meeting (annual)

Materiality Test Results

Sustainability management Labor-Management Cooperation Stakeholder Engagement Great Work Place

Suppliers Customers Society

Low Internal stakeholders High

The market leadership shown in smartphones

1 Data explosion, Strengthen Smart

2 Lead the general customer’s

Inquiry & application for payment of non-refunded

Initiate real-time account services

kt is searching for diverse ways to enable customers to make rational communications

By promoting Smart Working,

Survey results of the effects of smart working (%)

Concentration level Productivity Stress

Expanding Sustainability Management

Based on the Executing Managing

activities by linking with the local society Gangneung

Planned Openings: 2nd Half 2011

As the awareness of social responsibilities is increasing,

CEO Suk-Chae Lee Special category telecommunications/

ktis Call center operation and establishment 17.80 19,432

kt Skylife Satellite broadcasting, media 32.12 29,089

Sales of high-speed wireless

2008 2009 2010

Category 2008 2009 2010

Local call 22,132 20,090 19,273

Broadband Internet 15,475 16,349 17,224

Mobile phone 45,607 47,944 50,767

Overseas Subsidiaries Overseas Office

Management philosophy Always * * Always Connected

cted Updated interpretation of our former management

Esteemed Company respected

Happy Company making

Speedy and Goal-oriented and Professionalism and

14 action-oriented changes accountability management productivity

BOD Composition and Operation BOD Activities

Committees under the BOD

Responsibility Management by Professionals and

kt built an organizational structure that allows it to implement corporate sustainability

Sustainability Management Direction

Sustainability Management Direction

Five priorities Initiative Roles and responsibilities

Ethical Gain recognition as Ethical management activities,

Respect customer value, promote Service development, product liability, information

Environmental policy, environment management

Fair HR management (HRD, hiring and fostering),