KT "Achieving ROE up to 10% within 4 years... Enhancing Corporate Value"

"1 Trillion Won Scale Share Buyback and Cancellation"

KT plans to raise its return on equity (ROE) to the 9-10% range by 2028. To enhance shareholder value, it will also pursue a cumulative 1 trillion KRW share buyback and cancellation program.

Kim Young-seop, CEO of KT, is delivering the keynote speech at the 'AICT Business Strategy Presentation Press Conference' held last month at the 'Novotel Ambassador Seoul Dongdaemun'. KT

On the 5th, KT announced its value enhancement plan (Value-Up Program), which includes mid- to long-term financial targets and achievement strategies.

KT has set a mid- to long-term goal of achieving an ROE of 9-10% based on consolidated financial statements by 2028.

Currently, KT’s ROE stands in the 6% range. ROE, calculated by dividing net income by total equity, is a key profitability indicator showing how much profit a company generates from its equity.

To achieve this goal, KT outlined plans including ▲ transforming its business structure into an AICT (Artificial Intelligence + Information and Communication Technology) company ▲ innovating its business structure with a focus on profitability ▲ securing financial resources ▲ and conducting share buybacks and cancellations.

Through the transition to an 'AICT company,' KT aims to innovate the structure of each business sector such as telecommunications, media, and networks, and foster growth in the business-to-business (B2B) artificial intelligence transformation (AX) field.

KT set a target to increase the revenue share from AI and IT sectors, which accounted for 6% of service sales on a separate basis last year, to over 19%?approximately three times higher?by 2028.

Additionally, by streamlining low-profit and low-growth businesses and innovating the business structure with a focus on profitability, KT expects its consolidated operating profit margin, which was in the 6% range last year, to improve to the 9% range by 2028.

KT will also secure financial resources through the monetization of non-core assets. It plans to review and sell or develop non-core assets such as idle real estate and available-for-sale securities based on their purpose, profitability, and future potential to improve cash flow.

The improved cash flow will be used for new business investments and shareholder returns. Regarding shareholder returns, KT will pursue a cumulative 1 trillion KRW share buyback and cancellation program by 2028.

Jang Min, KT’s Chief Financial Officer (CFO), said, “We will successfully implement the mid- to long-term financial targets and achievement strategies to transition into an AICT company,” adding, “We will continue to explore various measures to enhance corporate value and actively communicate with the capital market regarding the results and progress.”