KT CORP | CIK:0000892450 | 3

  • Filed: 4/30/2018
  • Entity registrant name: KT CORP (CIK: 0000892450)
  • Generator: Donnelley Financial Solutions
  • SEC filing page: http://www.sec.gov/Archives/edgar/data/892450/000119312518141554/0001193125-18-141554-index.htm
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    • ifrs-full:DisclosureOfGeneralInformationAboutFinancialStatementsExplanatory

    1. General Information

    The consolidated financial statements include the accounts of KT Corporation, which is the controlling company as defined under IFRS 10, Consolidated Financial Statements, and its 59 controlled subsidiaries as described in Note 1.2 (collectively referred to as the “Group”).

    The Controlling Company

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

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

    On December 23, 1998, the Controlling Company’s shares were listed on the Korea Exchange.

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

    In 2002, the Controlling Company acquired the entire government-owned shares in accordance with the Korean government’s privatization plan. As of the end of the reporting period, the Korean government does not own any share in the Controlling Company.

     

    Consolidated Subsidiaries

    The consolidated subsidiaries as of December 31, 2016 and 2017, are as follows:

     

                Controlling percentage
    ownership1 (%)    		    
    Subsidiary   Type of Business   Location   December 31,
    2016    		   December 31,
    2017    		   Closing
    month

    KT Powertel Co., Ltd. 2

    		   Trunk radio system business   Korea   44.8%   44.8%   December

    KT Linkus Co., Ltd.

    		   Public telephone maintenance   Korea   91.4%   91.4%   December

    KT Submarine Co., Ltd. 2,3

    		   Submarine cable construction and maintenance   Korea   39.3%   39.3%   December

    KT Telecop Co., Ltd.

    		   Security service   Korea   86.8%   86.8%   December

    KT Hitel Co., Ltd.

    		   Data communication   Korea   67.1%   67.1%   December

    KT Service Bukbu Co., Ltd.

    		   Opening services of fixed line   Korea   67.3%   67.3%   December

    KT Service Nambu Co., Ltd.

    		   Opening services of fixed line   Korea   77.3%   77.3%   December

    KT Commerce Inc.

    		   B2C, B2B service   Korea   100.0%   100.0%   December

    KT New Business Fund No.1

    		   Investment fund   Korea   100.0%   100.0%   December

    KT Strategic Investment Fund No.1

    		   Investment fund   Korea   100.0%   100.0%   December

    KT Strategic Investment Fund No.2

    		   Investment fund   Korea   100.0%   100.0%   December

    KT Strategic Investment Fund No.3

    		   Investment fund   Korea   100.0%   100.0%   December

    KT Strategic Investment Fund No.4

    		   Investment fund   Korea   —     100.0%   December

    BC Card Co., Ltd.

    		   Credit card business   Korea   69.5%   69.5%   December

    VP Inc.

    		   Payment security service for credit card, others   Korea   50.9%   50.9%   December

    H&C Network

    		   Call centre for financial sectors   Korea   100.0%   100.0%   December

    BC Card China Co., Ltd.

    		   Software development and data processing   China   100.0%   100.0%   December

    INITECH Co., Ltd.4

    		   Internet banking ASP and security solutions   Korea   58.2%   58.2%   December

    Smartro Co., Ltd.

    		   VAN (Value Added Network) business   Korea   81.1%   81.1%   December

    KTDS Co., Ltd.4

    		   System integration and maintenance   Korea   95.5%   95.5%   December

    KT M Hows Co., Ltd.

    		   Mobile marketing   Korea   90.0%   90.0%   December

    KT M&S Co., Ltd.

    		   PCS distribution   Korea   100.0%   100.0%   December

    GENIE Music Corporation(KT Music Corporation)2

    		   Online music production and distribution   Korea   49.9%   42.5%   December

    KT Skylife Co., Ltd.4

    		   Satellite broadcasting business   Korea   50.3%   50.3%   December

    Skylife TV Co., Ltd.

    		   TV contents provider   Korea   92.6%   92.6%   December

    KT Estate Inc.

    		   Residential building development and supply   Korea   100.0%   100.0%   December

    KT AMC Co., Ltd.

    		   Asset management and consulting services   Korea   100.0%   100.0%   December

    NEXR Co., Ltd.

    		   Cloud system implementation   Korea   100.0%   100.0%   December

    KTSB Data service

    		   Data centre development and related service   Korea   51.0%   51.0%   December

    KT Sat Co., Ltd.

    		   Satellite communication business   Korea   100.0%   100.0%   December

    KT Innoedu Co

    		   E-learning business   Korea   96.8%   —     December

    Nasmedia, Inc.3

    		   Online advertisement   Korea   42.8%   42.8%   December

    KT Sports

    		   Management of sports group   Korea   100.0%   100.0%   December

    KT Music Contents Fund No.1

    		   Music contents investment business   Korea   80.0%   80.0%   December

    KT Music Contents Fund No.2

    		   Music contents investment business   Korea   —     100.0%   December

    KT-Michigan Global Content Fund

    		   Content investment business   Korea   88.6%   88.6%   December

    Autopion Co., Ltd.

    		   Service for information and communication   Korea   100.0%   100.0%   December

    KTCS Corporation 2,4

    		   Database and online information provider   Korea   30.9%   30.9%   December

    KTIS Corporation 2,4

    		   Database and online information provider   Korea   30.1%   30.1%   December

    KT M mobile

    		   Special category telecommunications operator and sales of communication device   Korea   100.0%   100.0%   December

    KT Investment Co., Ltd.

    		   Technology business finance   Korea   100.0%   100.0%   December

    NgenBio

    		   Medicine and Pharmacy development business   Belgium   49.8%   —     December

    Whowho&Company Co., Ltd.

    		   Software development and supply   Korea   100.0%   100.0%   December

    PlayD Co., Ltd.

    (N Search Marketing Co., Ltd.)

    		   Advertising agency business   Korea   100.0%   100.0%   December

    KT Rwanda Networks Ltd.

    		   Network installation and management   Rwanda   51.0%   51.0%   December

    AOS Ltd.

    		   System integration and maintenance   Rwanda   51.0%   51.0%   December

    KT Belgium

    		   Foreign investment business   Belgium   100.0%   100.0%   December

    KT ORS Belgium

    		   Foreign investment business   Belgium   100.0%   100.0%   December

    Korea Telecom Japan Co., Ltd.

    		   Foreign telecommunication business   Japan   100.0%   100.0%   December

    KBTO sp.zo.o.

    		   Electronic communication business   Poland   75.0%   94.0%   December

    Korea Telecom China Co., Ltd.

    		   Foreign telecommunication business   China   100.0%   100.0%   December

    KT Dutch B.V

    		   Super iMax and East Telecom management   Netherlands   100.0%   100.0%   December

    Super iMax LLC

    		   Wireless high speed internet business   Uzbekistan   100.0%   100.0%   December

    East Telecom LLC

    		   Fixed line telecommunication business   Uzbekistan   91.0%   91.0%   December

    Korea Telecom America, Inc.

    		   Foreign telecommunication business   USA   100.0%   100.0%   December

    PT. KT Indonesia

    		   Foreign telecommunication business   Indonesia   99.0%   99.0%   December

    PT. BC Card Asia Pacific

    		   Software development and supply   Indonesia   99.9%   99.9%   December

    KT Hongkong Telecommunications

    Co., Ltd.

    		   Fixed line communication business   Hong Kong   100.0%   100.0%   December

    KT Hong kong Limited

    		   Foreign investment business   Hong Kong   100.0%   100.0%   December

    Korea Telecom Singapore Pte.Ltd.

    		   Foreign investment business   Singapore   100.0%   100.0%   December

    Texnoprosistem LLP.

    		   Fixed line internet business   Uzbekistan   100.0%   100.0%   December

     

    1 Sum of the ownership interests owned by the Controlling Company and subsidiaries.
    2 Although the Controlling Company owns less than 50% ownership in this entity, this entity is consolidated as the Controlling Company can exercise the majority voting rights in its decision-making process at all times considering the historical voting pattern at the shareholders’ meetings.
    3 Although the Controlling Company owns less than 50% ownership in this entity, this entity is consolidated as the Controlling Company holds the majority of voting right based on an agreement with other investors.
    4 The number of subsidiaries’ treasury stock is deducted from the total number of shares when calculating the controlling percentage ownership.

    Changes in scope of consolidation in 2017 are as follows:

     

    Changes    Location    Subsidiary    Reason

    Included

    		    Korea    KT Strategic Investment Fund No.4    Newly established
          KT Music Contents Investment Fund No.2    Newly established

    Excluded

    		    Korea    KT Innoedu Co., Ltd.    Shares disposed
          NgeneBio    Percentage of ownership decreased

     

    Summarized information for consolidated subsidiaries as of and for the years ended December 31, 2015, 2016 and 2017, follows:

     

    (in millions of Korean won)    2015  
         Total assets      Total
    liabilities    		      Operating
    revenues    		     

    Profit (loss)

    For the year

    		  

    KT Powertel Co., Ltd.

    		    ￦ 113,515      ￦ 21,182      ￦ 104,527      ￦ (32,417 ) 

    KT Linkus Co., Ltd.

    		      77,141        65,745        116,095        3,449  

    KT Submarine Co., Ltd.

    		      160,314        63,518        67,268        4,145  

    KT Telecop Co., Ltd.

    		      269,191        134,966        302,844        (7,593 ) 

    KT Hitel Co.,Ltd.

    		      235,757        33,938        162,155        7,258  

    KT Service Bukbu Co., Ltd2

    		      31,879        22,627        89,498        (4,630 ) 

    KT Service Nambu Co., Ltd2

    		      20,729        10,567        110,129        (5,055 ) 

    BC Card Co., Ltd.1

    		      2,963,952        1,945,634        3,504,946        218,969  

    H&C Network1

    		      248,189        70,635        241,008        19,513  

    Nasmedia, Inc.

    		      141,733        72,202        45,630        9,916  

    KTDS Co., Ltd.1

    		      162,518        116,654        423,015        12,836  

    KT M Hows Co., Ltd.

    		      25,093        17,980        19,352        1,728  

    KT M&S Co., Ltd.

    		      256,246        217,892        853,011        (18,776 ) 

    GENIE Music Corporation(KT Music Corporation)

    		      90,518        30,704        90,005        3,446  

    KT Skylife Co., Ltd.1

    		      711,294        217,850        668,521        72,987  

    KT Estate Inc.1

    		      1,603,438        260,292        254,776        27,487  

    KTSB Data service

    		      23,063        1,730        4,390        (2,444 ) 

    KT Innoedu Co., Ltd.

    		      5,858        7,585        18,156        (4,288 ) 

    KT Sat Co., Ltd.

    		      679,959        210,110        133,326        27,174  

    KT Sports

    		      15,341        11,643        51,801        (3,836 ) 

    KT Music Contents Fund No.1

    		      10,206        47        468        (111 ) 

    KT-Michigan Global Content Fund

    		      5,401        —          861        (209 ) 

    Autopion Co., Ltd.

    		      7,102        3,317        10,585        1,123  

    KT M mobile

    		      64,756        13,121        42,478        (36,725 ) 

    KT Investment Co., Ltd

    		      49,485        30,827        4,704        (219 ) 

    NgeneBio

    		      7,894        4,683        —          (434 ) 

    KTCS Corporation1

    		      346,949        194,367        1,066,556        13,685  

    KTIS Corporation

    		      211,164        55,370        473,892        15,041  

    Korea Telecom Japan Co., Ltd.

    		      13,889        14,393        25,652        (248 ) 

    Korea Telecom China Co., Ltd.

    		      909        198        1,748        (95 ) 

    KT Dutch B.V.1

    		      29,402        27        161        118  

    Super iMax LLC

    		      14,962        8,186        8,291        (2,220 ) 

    East Telecom LLC

    		      30,833        17,066        24,066        664  

    Korea Telecom America, Inc.

    		      6,016        1,378        6,391        156  

    PT. KT Indonesia

    		      22        —          —          (9 ) 

    Olleh Rwanda Networks Ltd.

    		      188,951        147,653        7,299        (28,721 ) 

    KT Belgium

    		      77,058        4        —          (127 ) 

    KT ORS Belgium

    		      1,996        20        —          (75 ) 

    KBTO sp.zo.o.

    		      1,471        1,817        —          (328 ) 

    Africa Olleh Services Ltd.

    		      11,928        12,187        8,712        (923 ) 

     

    (In millions of Korean won)    2016  
         Total assets      Total liabilities      Operating
    revenues    		     

    Profit (loss)

    For the year

    		  

    KT Powertel Co., Ltd.

    		    ￦ 113,725      ￦ 19,899      ￦ 81,390      ￦ 202  

    KT Linkus Co., Ltd.

    		      64,318        56,953        117,587        (3,830 ) 

    KT Submarine Co., Ltd.

    		      156,993        55,573        84,137        5,146  

    KT Telecop Co., Ltd.

    		      265,553        132,344        315,948        143  

    KT Hitel Co., Ltd.

    		      249,202        46,941        198,994        4,298  

    KT Service Bukbu Co., Ltd.

    		      32,863        24,580        182,952        694  

    KT Service Nambu Co., Ltd.

    		      32,621        24,282        218,602        772  

    BC Card Co., Ltd.1

    		      3,651,065        2,602,404        3,567,512        163,131  

    H&C Network1

    		      272,110        80,983        266,613        14,749  

    Nasmedia, Inc.1

    		      263,925        159,502        70,037        11,972  

    KTDS Co., Ltd.1

    		      197,970        151,644        476,379        10,838  

    KT M Hows Co., Ltd.

    		      28,539        18,466        19,922        2,865  

    KT M&S Co., Ltd.

    		      247,854        227,507        724,144        (12,955 ) 

    GENIE Music Corporation(KT Music Corporation)

    		      110,080        41,953        111,450        8,235  

    KT Skylife Co., Ltd.1

    		      777,948        231,452        668,945        68,863  

    KT Estate Inc.1

    		      1,734,729        375,341        405,417        46,815  

    KTSB Data service

    		      20,075        759        5,136        (1,983 ) 

    KT Innoedu Co., Ltd.

    		      6,477        7,259        15,599        103  

    KT Sat Co., Ltd.

    		      744,653        253,041        144,594        36,266  

    KT Sports

    		      16,925        13,573        48,476        (198 ) 

    KT Music Contents Fund No.1

    		      10,592        331        349        103  

    KT-Michigan Global Content Fund

    		      16,250        163        133        (514 ) 

    Autopion Co., Ltd.

    		      6,163        2,794        7,772        (409 ) 

    KT M mobile

    		      131,446        20,369        112,532        (40,041 ) 

    KT Investment Co., Ltd.1

    		      39,506        23,123        10,130        (1,832 ) 

    NgeneBio

    		      6,361        4,733        244        (1,833 ) 

    KTCS Corporation1

    		      322,768        166,642        955,050        7,892  

    KTIS Corporation

    		      221,176        63,871        436,914        9,991  

    Korea Telecom Japan Co., Ltd.

    		      3,592        5,374        5,122        (1,391 ) 

    Korea Telecom China Co., Ltd.

    		      532        188        930        60  

    KT Dutch B.V

    		      34,197        73        166        85  

    Super iMax LLC

    		      10,308        6,734        10,759        (1,802 ) 

    East Telecom LLC

    		      31,885        16,554        27,492        3,257  

    Korea Telecom America, Inc.

    		      4,464        1,306        7,113        181  

    PT. KT Indonesia

    		      16        —          —          (7 ) 

    KT Rwanda Networks Ltd.

    		      167,112        138,651        13,435        (31,455 ) 

    KT Belguium

    		      79,391        7        —          (67 ) 

    KT ORS Belgium

    		      2,013        23        —          (46 ) 

    KBTO sp.zo.o.

    		      1,166        2,378        21        (2,587 ) 

    AOS Ltd.

    		      10,025        3,179        14,481        (1,123 ) 

    KT Hongkong Telecommunications Co., Ltd.

    		      1,571        956        1,568        120  

     

    (In millions of Korean won)    2017  
         Total assets      Total liabilities      Operating
    revenue    		     

    Profit (loss)

    for the year

    		  

    KT Powertel Co., Ltd.

    		      115,125        18,937        69,234        2,112  

    KT Linkus Co., Ltd.

    		      59,344        51,516        112,043        725  

    KT Submarine Co., Ltd.

    		      142,797        34,056        73,985        8,243  

    KT Telecop Co., Ltd.

    		      264,353        131,633        317,591        2,885  

    KT Hitel Co., Ltd.

    		      258,240        52,943        227,884        3,225  

    KT Service Bukbu Co., Ltd.

    		      29,281        22,096        194,837        688  

    KT Service Nambu Co., Ltd.

    		      36,076        26,412        232,996        875  

    BC Card Co., Ltd.1

    		      4,048,263        2,955,038        3,628,995        156,109  

    H&C Network1

    		      273,856        65,446        277,622        16,104  

    Nasmedia, Inc.1

    		      315,967        188,197        120,667        26,676  

    KTDS Co., Ltd.1

    		      144,922        93,343        459,266        11,584  

    KT M Hows Co., Ltd.

    		      42,738        28,489        24,610        4,097  

    KT M&S Co., Ltd.

    		      242,388        231,151        734,420        (9,707 ) 

    GENIE Music Corporation(KT Music Corporation)

    		      139,686        48,512        156,163        (3,401 ) 

    KT Skylife Co., Ltd.1

    		      792,893        210,550        687,752        57,314  

    KT Estate Inc.1

    		      1,869,194        502,915        428,446        52,416  

    KTSB Data service

    		      18,306        605        4,950        (1,651 ) 

    KT Sat Co., Ltd.

    		      742,391        220,804        147,649        29,601  

    KT Sports

    		      11,131        7,805        53,357        (199 ) 

    KT Music Contents Fund No.1

    		      13,804        1,041        370        (499 ) 

    KT Music Contents Fund No.2

    		      7,500        11        —          (11 ) 

    KT-Michigan Global Content Fund

    		      14,575        147        159        (426 ) 

    Autopion Co., Ltd.

    		      6,306        3,530        6,679        (618 ) 

    KT M mobile

    		      93,601        21,453        159,684        (38,883 ) 

    KT Investment Co., Ltd.1

    		      54,673        38,313        8,794        (619 ) 

    KTCS Corporation1

    		      348,334        188,764        968,186        7,385  

    KTIS Corporation

    		      223,818        62,569        438,597        8,337  

    Korea Telecom Japan Co., Ltd.1

    		      1,554        2,788        2,772        536  

    Korea Telecom China Co., Ltd.

    		      665        32        1,030        348  

    KT Dutch B.V

    		      30,312        50        206        169  

    Super iMax LLC

    		      3,449        4,886        7,314        (4,584 ) 

    East Telecom LLC1

    		      11,672        11,748        19,663        (9,118 ) 

    Korea Telecom America, Inc.

    		      3,694        791        6,783        109  

    PT. KT Indonesia

    		      8        —          —          (6 ) 

    KT Rwanda Networks Ltd.2

    		      151,359        139,561        15,931        (22,762 ) 

    KT Belguium

    		      86,455        8        49        (2 ) 

    KT ORS Belgium

    		      1,769        14        10        (10 ) 

    KBTO sp.zo.o.

    		      3,311        2,268        67        (3,456 ) 

    AOS Ltd.2

    		      9,437        4,519        8,952        (682 ) 

    KT Hongkong Telecommunications Co., Ltd.

    		      2,578        1,497        7,304        494  

     

    1 These companies are the intermediate controlling companies of other subsidiaries and the above financial information is from their consolidated financial statements.
    2 At the end of the reporting period, convertible preferred stock issued by subsidiaries included in liabilities.