[Conference Call] KT: "No Excessive Subsidy Competition Expected After DanTong Act Repeal"

KT has predicted that competition in the wireless market will not intensify even after the repeal of the Mobile Device Distribution Improvement Act (commonly known as the "DanTong Act").

During its second quarter earnings conference call held on the afternoon of August 11, KT stated, "Although a new Galaxy flagship product was released following the repeal of the DanTong Act, we have not observed any excessive competition in the market that would be cause for concern." The company added, "While there is a possibility that competition could intensify if new products such as the iPhone are launched in the future, we believe it will be difficult for such competition to be sustained over the long term."

As for the reasons why prolonged competition is unlikely, KT explained, "The penetration rate of 5G has surpassed 80%, and consumers are now replacing their devices less frequently." The company further noted, "Telecommunications operators also need to focus on investments in artificial intelligence (AI), IT, and new business areas, so we do not expect fierce competition in the wireless market to persist over the long term."