Kim Hoi-Jae

Kim Hoi-jae from Daishin Securities inquired about KT's Q4 2025 earnings outlook, considering seasonal costs and customer compensation impacts. He also asked about potential dividend increases for Q4 and whether the KRW 1 trillion share buyback program might expand in 2026.

Answer

CFO Min Jang stated that the Q4 outlook is conservative due to seasonality, customer compensation, and potential fines, but full-year 2025 is still projected for YoY growth. Regarding dividends, the BOD will make a reasonable decision considering annual performance and shareholder expectations despite the hacking incident's impact. For share buybacks, the KRW 250 billion for 2025 is complete, and the BOD will flexibly decide on the 2026 size, balancing market confidence and operational changes.

Kim Hoi-Jae from Daishin Securities inquired about KT's fourth-quarter financial outlook, considering typical seasonal expenses and current uncertainties. Kim also asked about the potential for increased dividend payments for Q4 and whether the KRW 1 trillion share buyback and cancellation program, initiated in 2025, might expand in 2026.

Answer

KT CFO Min Jang stated that the Q4 outlook is conservative due to seasonality, customer compensation costs, and potential fines from the hacking incident, though efforts are being made to minimize financial impact. For the full year 2025, KT expects year-over-year growth on both consolidated and separate bases, driven by revenue growth, profitability improvements, one-off gains, and core business expansion. Regarding dividends, Min Jang noted that while the hacking incident introduces uncertainty, the Board of Directors will make a reasonable decision based on annual financial performance and shareholder expectations. For the share buyback, Min Jang confirmed KRW 250 billion was completed in 2025 and future sizes will be flexibly decided by the board, considering market confidence and the ongoing value-up plan.

Hoi Jae Kim from Daishin Securities questioned the future CapEx forecast, including the timing of the next 5G/6G investment cycle and costs for AI model training. He also asked for specifics on the shareholder value plan and sought clarification on whether the KRW 250 billion share buyback would be an annual commitment through 2028.

Answer

CFO Min Jang stated that total CapEx is planned to remain flat at 2024 levels, as lower B2C investment will be offset by higher AICT and IT spending. He clarified that significant 6G investment is unlikely for 2-3 years. Regarding the shareholder return plan, he confirmed the KRW 250 billion buyback and cancellation for the year, noting it is highly possible this amount will be repeated annually through 2028, contingent on profit growth and pending board approval.