KT to Gain Future
Growth Momentum

Posts a slight sales increase to 11.8 trillion won.

KT chalked up 11,877.3 billion won in sales during 2005, an increase of 26.5 billion won over 2004, Korea's largest fixed line and broadband service provider said. However, KT witnessed operating income register a 21.6 percent increase on a year-on-year plunge to 1,667.8 billion won and net income plummet 20.6 percent to 997.3 billion won. The 2005 business performances stood at similar levels KT aimed to rake in last year during a conference call on the third quarter results.
Despite the sluggish fixed line market and fierce market competition conditions, KT registered a growth in sales, riding on a boost in broadband internet service and PCS resale business sectors, but operating and net income declined due to a rise in penalty charges imposed by the fair trade watchdog and personnel expenses.
KT saw its debt ratio dropping from 170.01 percent to 123.7 percent as the corporation repaid exchange bonds and bonds with warrant in the process of its privatization. KT declared to maintain the 6.2 percent market share in the PCS business sector on a voluntary basis to ensure fair trade.
KT successfully demonstrated its forthcoming mobile internet service WiBro while building a foundation to take a lead in the ubiquitous era by acquiring a content maker.
Kwon Haeng-min, head of Finance Office at KT, said KT will invest 3 trillion won during this year to launch its commercial WiBro service following two years of preparation and concentrate on other futuristic growth engine sectors, including IP media and digital contents and IT services.

FUTURE GROWTH MOMENTUM ― KT President-CEO Nam Joong-soo said in his New Year's message that 2006 will be a year for not only instilling a new vigor into the moribund IT market in anticipation of the full-fledge convergence era but also building up infrastructure for its leap into a futuristic ubiquitous world.
CEO Nam noted that 2005 saw the telecommunications market remain stagnant overall with the sluggish IT industry and sagging new services, but he expressed the hope KT will explore a "ubiquitous wonderland"(wonderful world) by overcoming these difficulties.
As one of the three tasks KT will implement during this year, Nam said, "This year will be a year for implementing new services in a full-fledged manner we have prepared ambitiously."He said the upcoming commercial launch of WiBro for the first time in the world will attract global limelight, and IP media is coming up as KT's another opportunity, thus raising KT's profile and creating the new added values.
CEO Nam emphasized that KT will purse management based on futuristic investments, building up advanced network and developing corresponding contents and services and cultivating manpower responsible for their operation. KT will also expand its existing business arenas and capabilities to create such new values as U-City.
KT will put more energy into impressing clients with heart-warming services, he said. He said KT will have to develop a new "customer care program"designed to promote marketing differentiating the value for clients, staying away from the existing supplier-oriented "push marketing."Recognizing the fact that "our partners"competitiveness is closed related to our competitive edge, KT will promote co-prosperity between management and labor, with its partners and purse activities contributing to society and ethical management. nw

No Longer Redialing When Line Is Busy!

Telephone users will no longer face the nuisance of dialing repeatedly when the line is busy.
KT announced on February 6 the development of a service automatically connecting a telephone call once the line is clear.
When your line is busy, you have to push the asterisk button according to the guidance of the operator, and you will be connected automatically later after the initial call is over.
KT officials said the new service would be favored by telephone users as the service will not require surcharges other than inter- or intra-city call charges when it is fully available.
Initially, KT will experiment the service to clients in such areas as Jeongeup. Donggunsan and Namjeongju, all in North Jeolla Province, during the two-week period between February 6 and February 19. Starting with South Jeolla Province, North Jeolla Province, Gyeonggi Province and other Seoul metropolitan area, KT will launch the commercial service to clients using TDX-class telephones in March.
Kim Hyun-mook, managing director in charge of communication services at KT, said currently, telephone users repeat dialing the same telephone numbers at seven occasions out of every 10, and the new service will alleviate an inconvenience - clients'redialing without additional charges. nw

KT President-CEO Nam Joong-soo