Won-seok Jeong

Won-seok Jeong from Shinyoung Securities inquired about the financial impact of KT's customer compensation package following the data breach incident and the incoming CEO's stance on the company's shareholder return policy and growth strategy.

Answer

Min Jang, CFO of KT Corporation, explained that while the customer benefit from the appreciation package was estimated at KRW 450 billion, not all of it would be booked as cost, depending on actual usage. Costs incurred in 2025 and certain for 2026 have been booked in the 2025 numbers, with further accounting for 2026 to be determined with external auditors. The CFO expressed confidence that 2026 earnings would surpass 2025. Regarding the new CEO, Min Jang noted the 20% increase in DPS to KRW 2,400 for 2025 and anticipated the 2026 shareholder plan, to be finalized by the new CEO and BOD, would align with the company's progressive stance and higher profit objectives. The CFO also stated that the new CEO, with expertise in B2B and future technologies, is expected to maintain the strategic approach, particularly in AX-driven innovation, though tactical adjustments may reflect the new CEO's philosophy.

Won-seok Jeong asked about the IT business, specifically the impact of rising memory semiconductor prices and the conservative outlook for the downstream IT set market on profitability. He inquired about the IT business operating strategy and the possibility of achieving a turnaround this year. He also questioned if the company's lack of 8.6-generation IT OLED investment or mass production plans would disadvantage them in customer allocation, and asked for the IT PC OLED strategy.

Answer

Ahn Yu-shin, in charge of Medium Display Planning and Management, stated that in 2025, the mid-size business focused on high-end global customers and reducing low-margin products, along with rigorous cost innovation, leading to meaningful profitability improvement. This trend is expected to continue into 2026. He acknowledged market uncertainties but outlined a two-track strategy: profitability-focused selection and concentration for high-end LCD, and new demand response and future market preparation for premium OLED. CFO Kim Seong-hyun added that while LG Display is monitoring IT OLED market expansion, there's insufficient visibility for 8.6-generation investment. The company will leverage 6th-gen fabs for tablet OLED and 8th-gen fabs for monitor OLED, while carefully reviewing notebook PC OLED market size and transition pace, maximizing existing infrastructure and developing cost-advantageous technologies.