KT Corp (KT) 2024 Q4 法說會逐字稿

Good morning and good evening. Thank you all for joining this conference call, and now we'll begin the conference of the fourth quarter of fiscal year 2024 earnings results by KT. We would like to have welcoming remarks from Ktir O, and then CFO will present earnings results and take your questions. (Operator Instructions) Now we would like to turn the conference over to KT's IRO.

早安，晚上好。感謝大家參加本次電話會議，現在我們將開始 KT 2024 財年第四季獲利業績發表會。我們歡迎 Ktir O 致歡迎辭，然後 CFO 將介紹盈利結果並回答您的問題。(操作員指示)現在我們想將會議交給 KT 的 IRO。

Good afternoon. I'm KT's IRO, Young-Kyun Yoon. We will begin KT's 2024 full year earnings presentation. This earnings release call is being webcast live on the company's website, so you can listen in on the call and follow the presentation slides as we go along.

午安.我是 KT 的 IRO，Young-Kyun Yoon。我們將開始 KT 2024 年全年財報。本次收益發布電話會議將在公司網站上進行網路直播，因此您可以收聽電話會議並關注簡報投影片。

Let me remind you that today's presentation includes financial estimates and operating results under the K-IFRS standards that are yet to be reviewed by an outside auditor. We therefore cannot ensure accuracy nor completeness of financial and business data aside from the historical actuals. So please note that these figures may be subject to change in the future.

讓我提醒您，今天的報告包括根據 K-IFRS 標準得出的財務估算和經營業績，尚未經過外部審計師的審查。因此，除了歷史實際情況之外，我們無法確保財務和業務資料的準確性和完整性。因此請注意這些數字將來可能會發生變化。

With that, I invite the company CFO, Min Jang to run through our annual results of FY2024.

因此，我邀請公司財務長 Min Jang 來介紹我們 2024 財年的年度業績。

Good afternoon. I am CFO of KT, Jang Min. In 2024, under the goal of AICT transformation, KT pushed forward with innovating its workforce and business structure and through our partnership with Microsoft and by cultivating our IT professionals, we strived to build up a driving force behind the future growth.

午安.我是 KT 的財務長 Jang Min。 2024年，KT以AICT轉型為目標，推動員工隊伍和業務結構創新，並透過與微軟的合作以及培養IT人才，努力打造未來成長的驅動力。

On the back of balanced growth between B2C and B2B and good performances from data center, cloud, and other core businesses, consolidated revenue reported KRW26,431.2 billion which is a historical record since the company went public in 1998.

在B2C與B2B均衡成長、資料中心、雲端等核心業務表現良好的基礎上，合併營收達26.4312兆韓元，創下1998年上市以來的歷史最高紀錄。

Also, we entered into strategic partnership with Microsoft to effect a complete transformation as AICT company focusing on structural profitability improvements such as innovating the workforce structure and rationalizing underperforming businesses.

此外，我們與微軟建立了策略合作夥伴關係，實現作為 AICT 公司的全面轉型，專注於結構性盈利能力的改善，例如創新勞動力結構和合理化表現不佳的業務。

Following workforce innovation in Q4, operating profits fell 50.9% year-on-year, coming in at KRW809.5 billion. But if one-off impact is removed, OP stands at KRW1,811.8 billion, increasing 9.8% year on year, showing stronger fundamentals.

受第四季勞動力革新影響，營業利潤年減50.9%，至8,095億韓元。但如果除去一次性影響，營業利潤為1.8118兆韓元，較去年同期成長9.8%，顯示基本面更加強勁。

Also in terms of corporate value, last November we put in place mid to longer term corporate value enhancement goal presenting a progressive action plan.

在企業價值方面，去年11月，我們訂定了中長期企業價值提升目標，並提出了漸進式的行動計畫。

We will speed up structural innovation to transition to AICT Company in 2025 and by actively implementing the plan on corporate value enhancement, we intend to yield results from core growth businesses including AICT cloud, and elevate shareholder return. And so we've set consolidated revenue target for the year at about KRW28 trillion.

我們將加速結構創新，在2025年轉型為AICT公司，並積極實施企業價值提升計劃，力爭讓AICT雲端等核心成長業務取得成果，提高股東回報。因此，我們設定今年的綜合收入目標為​​約28兆韓元。

Also under the strategic partnership with Microsoft, we will commence with the launch of products that are distinct to KT in the first half of the year, such as AI models specialized for Korea and secure public cloud, etc. To place full force behind sales and order wins to build a basis for B2B AX business growth.

另外，在與微軟的策略夥伴關係下，我們將在上半年開始推出專門針對韓國的AI模型和安全的公有雲等KT獨有的產品。

Fixed and wireless business and the media business will continue its growth by delivering differentiated customer experience underpinned by AX Technology. While through technology innovation and scale up of IT, we plan to optimize system for business operations and management.

固定和無線業務以及媒體業務將透過提供以 AX 技術為基礎的差異化客戶體驗繼續成長。同時透過技術創新和IT規模化，優化業務營運和管理體系。

As an AICT company, KT is endeavoring on making improvements in growth and profitability and translate them into enhancing shareholder value. Through the revision of articles of incorporation in 2024, we adopted quarterly dividend as part of our shareholder-friendly management policy with KRW150 billion of cumulative dividend paid out up to Q3.

作為一家 AICT 公司，KT 正致力於提高成長速度和獲利能力，並將其轉化為提高股東價值。透過2024年修改公司章程，我們採用季度股利作為股東友善管理政策的一部分，截至第三季已累計派發股利1,500億韓元。

BPS for Q4 '24 is KRW500 per share and dividend record date is February 28. On the back of effort on structural profit improvements, we increased annual DPS from 1,961 back in 2023 to 2001 in FY24. Q4 dividend will be paid out after the approval from March general meeting of shareholders.

24 年第四季的 BPS 為每股 500 韓元，股利記錄日期為 2 月 28 日。在結構性利潤改善的努力下，我們將年度 DPS 從 2023 年的 1,961 提高到 2024 財年的 2001。第四季股利將於三月股東大會批准後發放。

Under the corporate Value enhancement plan as part of the 1 trillion share buyback and cancellation plan we have for until 2028, we plan on [KRW250 billion] buyback and cancellation this year. KT will continue to drive fundamental innovation as an AICT company to ensure sustainable growth and corporate value enhancement.

根據企業價值提升計劃，作為我們到 2028 年的 1 兆股票回購和註銷計劃的一部分，我們計劃今年進行 [2500 億韓元] 的回購和註銷。作為一家 AICT 公司，KT 將繼續推動基礎創新，以確保永續成長和企業價值提升。

I will now move on to 2024 annual earnings.

我現在要談談 2024 年的年度收入。

Operating revenue was up 0.2%. Year-on-year to KRW26,431.2 billion, while operating profit declined 50.9% year-on-year, coming in at KRW809.5 billion on the back of one-off labor costs following structural enhancement of the workforce.

營業收入成長0.2%。營業利潤為26.4312兆韓元，年減50.9%，至8.095兆韓元，主要是因為勞動力結構性增強導致的一次性勞動成本增加。

Following the decrease in operating profits, net profits fell 54.5% year-on-year to KRW450.1 billion, and EIA was down 14.2% year on year to KRW4,687.2 billion.

伴隨營業利潤的下降，淨利年減54.5%至4,501億韓元，EIA年減14.2%至4,6,872億韓元。

Next is on operating expense. On the back of workforce revamping, which led to an increase in one-off labor cost and on higher depreciation, operating expense was up 3.6% year-on-year, reporting KRW25,621.7 billion.

接下來是營業費用。由於勞動重組導致一次性勞動成本增加以及折舊增加，營業費用年增3.6%，達到25,6217億韓元。

Next is on the financial position of the company. Debt to equity ratio at end of December 24, was 132.3% and net debt to equity ratio dipped 1.9% points year over year, reporting 37.7%. Next is on CapEx.

接下來是關於公司的財務狀況。截至12月24日，負債權益比率為132.3%，淨負債權益比率較去年同期下降1.9個百分點，為37.7%。接下來是資本支出 (CapEx)。

KT Group's total CapEx spend in 2024 was KRW3,123.4 billion. KT on separate basis, its cumulative annual CapEx was KRW2,299.9 billion, and CapEx from key growth businesses of finance, media, DX, real estate reported KRW823.5 billion.

韓國電信集團 2024 年的總資本支出為 31,234 億韓元。韓國單獨來看，其年度累計資本支出為22,999億韓元，其中金融、媒體、DX、房地產等主要成長業務的資本支出為8,235億韓元。

Next is on the performance of each of our business segments. Wireless revenue was up 1.3% year on year, reporting KRW6,959.9 billion.

接下來是我們各個業務部門的表現。無線營收年增1.3%，達6.9599兆韓元。

With the launch of many different rate plans offering greater choice to customers, 5G subscriber count exceeded 10.4 million subscribers, accounting for 77.8% of total handset subscriber base. We are also seeing solid growth continuing from roaming and MVNO business. Next is on the fixed line business.

隨著多種資費套餐的推出，為客戶提供了更多的選擇，5G用戶數突破1040萬，佔手機用戶總數的77.8%。我們也看到漫遊和行動虛擬網路營運商業務持續穩定成長。接下來是固定電話業務。

On the back of growth in giga internet subscribers, internet revenue was up 1.1% year on year, reporting KRW2,486.9 billion.

在千兆網路用戶成長的推動下，網路營收年增1.1％，達到24,869億韓元。

Media business so 1.2% year-on-year growth on IPTV subscriber expansion, mainly around high IP plans and higher quality setup boxes. The new media division set up end of 2024 is going to be a pivot for all of our group's media business related competencies, and we plan to push forward with media business innovation driven by AX.

媒體業務年增1.2%，主要得益於IPTV用戶的擴張，這主要圍繞著高IP計劃和更高品質的機上盒。2024年底成立的新媒體部門將成為我們集團所有媒體業務相關能力的支點，我們計劃推動由AX驅動的媒體業務創新。

Home fixed line telephony revenue was down 7.3% year on year to KRW699.4 billion. Next on B2B services.

家庭固定電話收入較去年同期下降7.3%至6994億韓元。接下來是 B2B 服務。

Despite rationalization of unprofitable businesses driven by solid growth of enterprise internet and data business and growing demand for AX services, B2B revenue posted 2.9% year over year growth.

儘管由於企業互聯網和數據業務的穩健增長以及對 AX 服務的需求不斷增長，無利可圖的業務進行了合理化調整，但 B2B 收入仍同比增長 2.9%。

It's worth noting that AI IT business revenue increasing 11.9% year on year following AICC expansion and Thailand's LLM project.

值得注意的是，隨著AICC擴建及泰國LLM專案的落地，AI IT業務營收年增11.9%。

In 2025, we will continue to streamline businesses yielding low performance while driving volume and quality growth through having a core focus on strategic customers and product launches based on the partnership with Microsoft. Next, moving on to the results of our major subsidiaries.

2025年，我們將持續精簡業績不佳的業務，以策略客戶為核心，以與微軟的合作為基礎推出新產品，推動數量和品質的成長。接下來，我們來看看我們主要子公司的業績。

On the back of decline in acquiring volume, BC card revenue was down 5.4% year on year to KRW3,805.8 billion, and operating profit, however, posted a sizable year over year increase driven by private label cards, financial business expansion, as well as profitability enhancement efforts.

由於收單量下降，BC 卡營業收入年減 5.4% 至 38,058 億韓元，不過，受自有品牌卡、金融業務擴張以及盈利能力提升等推動，營業利潤同比大幅增長。

Despite growth from internet resale and MVNO business growth due to pay TV subscriber declines, KT Skylife revenue was down 1.5% year on year, coming in at KRW1022.9 billion.

儘管由於付費電視用戶減少，網路轉售和MVNO業務成長，但KT Skylife的營收年減1.5%，至1,0229億韓元。

Impacted by contracting market, content subsidiary saw its revenue fall by 13.6% year on year. But despite the industry depression, Crash, Your Honor, to my Harry were box office successes attesting to future potential for growth.

受到市場萎縮影響，內容子公司營收年減13.6%。但是，儘管行業不景氣，《撞車》、《法官大人》和《我的哈利》仍然取得了票房成功，證明了未來的成長潛力。

Supported by growing data center usage by global customers and an increase in traffic for cloud-based CDN, KT Cloud posted 15.5% year over year growth.

受全球客戶資料中心使用率不斷增長以及基於雲端的 CDN 流量增加的支持，KT Cloud 同比增長了 15.5%。

Posted 1.7% year over year increase, reporting KRW604.9 billion on the back of rental revenue growth from office and hotel.

年增1.7%，達到6,049億韓元，得益於辦公室和飯店租金收入的成長。

This was an update on KT's 2024 annual performance. KT will continue to drive structural transformation as an AICT company, and through a successful implementation of corporate value enhancement, we'll make sure we take the leap towards driving KT's corporate value a notch higher.

這是 KT 2024 年度業績的最新進展。KT 將繼續推動作為 AICT 公司的結構轉型，並透過成功實施企業價值提升，確保實現 KT 企業價值的飛躍。

We hence look forward to your ongoing support and interest from all of our investors and analysts. Thank you.

因此，我們期待所有投資者和分析師繼續給予支持和關注。謝謝。

For more details, please refer to the presentation deck which we previously circulated. We would now like to begin the Q&A to give as many chances as possible. I would like to ask, did you ask no more than two questions per person. We'll take the first question.

如欲了解更多詳情，請參閱我們先前分發的簡報。我們現在想開始問答環節，以提供盡可能多的機會。我想問一下，你們每個人問的問題不超過兩個嗎？我們將回答第一個問題。

Jong Xin, TB Financial and investment securities.

鍾欣，TB金融投資證券。

Thank you for taking my question. I have a couple of questions. First one relates to your 2025 outlook. If you could guide us on what your forecast is in terms of revenue, profit, and shareholder return, that would be helpful. And I would also like to understand as to when we will be able to see either revenue and profit come through from your real estate development located in the north of the riverside.

感謝您回答我的問題。我有幾個問題。第一個問題與你的 2025 年展望有關。如果您能告訴我們您對收入、利潤和股東回報的預測，那將會很有幫助。我也想了解一下，你們位於河北岸的房地產開發案什麼時候才能帶來收入和利潤。

Responding to your second question first, with regarding the real estate development related profit, you're asking the timing under which we would be recognizing that profit with respect to the apartment that's been built on site, we will start to book the revenues from that business. People will start to move into that apartment starting March, and we would be recognizing and booking the profit across Q1 and Q2.

首先回答您的第二個問題，關於房地產開發相關利潤，您問的是我們將在什麼時候確認已在現場建造的公寓的利潤，我們將開始記錄該業務的收入。人們將從三月開始搬進那間公寓，我們將確認並記錄第一季和第二季的利潤。

And also regarding the guidance for revenue operating profit and shareholder return, I've mentioned in my presentation the revenue guidance is on a consolidated basis above KRW28 trillion.

關於收入、營業利潤和股東回報的指引，我在演講中提到，綜合收入指引在 28 兆韓元以上。

In terms of the profit guidance, you would understand that we won't be able to share with you any specific figure per se, but if you look at the size of the profit for 2024 and the effect that we will get from structural improvements that we've undertaken and also based on the expansion of the revenue that comes from AICT Business and initiative, I think you can make an appropriate estimation.

關於利潤指引，您應該明白，我們無法與您分享任何具體的數字，但如果您看看 2024 年的利潤規模以及我們從所進行的結構性改進中獲得的效果，並且基於來自 AICT 業務和計劃的收入擴大，我想您可以做出適當的估計。

As part of managing our bottom line, we are planning to make sure that all the workforce related improvements that we've made over the past year will really materialize into profit for us this year. And also we're going through a rationalization process for unprofitable or underperforming business, so we continuously endeavor to bring improvements on the structural profitability of the company.

作為管理底線的一部分，我們計劃確保過去一年中所做的所有與勞動力相關的改進能在今年真正轉化為我們的利潤。同時，我們正在對無利可圖或表現不佳的業務進行合理化調整，因此我們不斷努力改善公司的結構性獲利能力。

Responding to the question of shareholder return, once we are able to materialize the impact from profit improvement, that will give us some room in terms of resources that we need in order to provide a shareholder return.

回答股東回報的問題，一旦我們能夠實現利潤改善的影響，這將為我們在提供股東回報所需的資源方面提供一些空間。

So in terms of the method of that shareholder return, the mix between actual cash payouts versus share buyback and cancellation, the specifics will be decided based on well, from the upcoming BOD meeting, but we will make sure that we maintain the minimum level of return that the market is expecting and we'll make a decision in line with that expectation.

因此，就股東回報方式、實際現金支出與股票回購和取消的組合而言，具體細節將根據即將召開的董事會會議決定，但我們將確保維持市場預期的最低迴報水平，並根據該預期做出決定。

Next question, please.

請回答下一個問題。

Chisa Kim, KB Securities.

Chisa Kim，KB證券。

Thank you for taking my question. I'm from KB Securities. My questions relate to your business and the partnership that you have with Microsoft. First on Business, I understand from press articles that KT will focus on providing business process innovation solutions to your customers and clients, and I understand that this is a domain where there are many number of competitors, so I would like to understand the unique point that KT has in terms of its. Business strategy, your roadmap and what your top line revenue projection is from this business.

感謝您回答我的問題。我是 KB 證券公司的。我的問題與您的業務以及您與微軟的合作關係有關。首先關於業務，我從新聞文章中了解到，KT 將專注於為您的客戶和客戶提供業務流程創新解決方案，我了解到這個領域有很多競爭對手，所以我想了解 KT 在其方面的獨特之處。商業策略、路線圖以及您對這項業務的頂線收入的預測。

Second question relates to your cooperation and partnership with Microsoft. You talked about a more Korea specialized AI model and you also talked about SPC, secure public cloud for this year, where would your focus be and what is the milestone like and also what do you project to be the financial impact from these initiatives?

第二個問題涉及您與微軟的合作與夥伴關係。您談到了更韓國化的 AI 模型，也談到了 SPC、今年的安全公有雲，您的重點是什麼？

Thank you for that question. When we say AICT transformation, basically the overarching approach to AX strategy for KT is first off focusing on B2B customers, and that is through our IT business, and also there is B2C.

感謝您的提問。當我們說到 AICT 轉型時，基本上 KT AX 策略的整體方法首先是專注於 B2B 客戶，這是透過我們的 IT 業務，同時還有 B2C。

Which is the core fundamental of KT's business, so that is the CT, the communication technology business, and the third prong is our media business. So our strategy is to enable transformation that is driven by an AI capabilities.

這是 KT 業務的核心基礎，即 CT，即通訊技術業務，第三個部分是我們的媒體業務。因此，我們的策略是實現由人工智慧能力驅動的轉型。

So I take it that you must have read some press articles that dealt with the A, the B2B business side of our endeavors, and basically all of the B2B IT businesses that KT is providing, these are areas that cannot develop or where we cannot generate performance without the element of AI piece in it, so it is all AI powered or AI enabled.

因此，我認為您一定讀過一些涉及 A 方面的新聞文章，即我們努力的 B2B 業務方面，以及 KT 提供的所有 B2B IT 業務，這些領域如果沒有 AI 元素就無法發展或無法產生績效，因此，一切都由 AI 驅動或由 AI 實現。

So, based on such a strategy, we will be providing new service offerings to our B2B customers. So AI and ITPs combined in 2024, their financial impact was KRW1 trillion and in 2025, basically we will be our objective is to have a double digit growth.

因此，基於這樣的策略，我們將為 B2B 客戶提供新的服務。因此，到 2024 年，人工智慧和 ITP 的綜合財務影響將達到 1 兆韓元，到 2025 年，我們的目標是實現兩位數的成長。

Moving on to the other question on Microsoft.

繼續討論有關微軟的另一個問題。

So I will divide this answer into three pieces one on service, second on the customer, and third on our internal organization capacity.

因此，我會將這個答案分成三個部分：第一部分是服務，第二部分是客戶，第三部分是我們的內部組織能力。

So first on the service offering side, basically our plan is to launch a Korea specialized secure public cloud within the Q1 of this year so that we can provide that to our B2B customers and very quickly carry on with proof of concept so that we can actually secure reference point and have the basis for us to be established in the market early on.

因此，首先在服務提供方面，我們基本上計劃在今年第一季推出韓國專門的安全公有雲，以便我們可以將其提供給我們的 B2B 客戶，並非常快速地進行概念驗證，以便我們能夠真正獲得參考點，並為我們儘早進入市場奠定基礎。

And second service is basically this is an AI model that is trained on data that is specific to Korea. It will be a model that is based on GPT4.

第二項服務基本上是一個基於韓國特定資料訓練的人工智慧模型。它將是一個基於 GPT4 的模型。

So our objective is to release this model within the second quarter of this year and right now the model is undergoing.

因此我們的目標是在今年第二季發布該模型，目前該模型正在進行中。

Now, in terms of the breakdown, what we are doing, and we have actually selected about three strategic key customers together with Microsoft, and we are currently in the proposal stage. Basically these 30 or so strategic customers will be the first batch of clients that we will focus on in delivering the services that we are developing.

現在，就細分而言，我們正在做的事情，我們實際上已經與微軟一起選擇了大約三個策略關鍵客戶，目前我們處於提案階段。基本上這30個左右的策略客戶將是我們開發服務時重點關注的第一批客戶。

A third aspect is our internal organizational capabilities. In order to address the needs of our customers from a more professional perspective, we've been able to really strengthen the consulting capabilities of our existing consulting organization, and we've also set up a specialized organization, and we've been cultivating and beefing up talent within that group so that we can better meet the requirements of our customers in regards to AX.

第三個面向是我們內部的組織能力。為了從更專業的角度滿足客戶的需求，我們能夠真正加強現有諮詢機構的諮詢能力，並且我們還成立了一個專業機構，並且一直在培養和加強該機構內的人才，以便我們能夠更好地滿足客戶對AX的要求。

We'll move on to the next question.

我們繼續討論下一個問題。

Kim, Taicn Securities.

Kim，台中證券。

Thank you, I'm So -- covering telecommunications services at patient Securities. I would like to first ask about your CapEx. I would like to know the current capexx level has been coming down. I would like to know the future forecast for CapEx. And when will be the timing for us to see another increase in CapEx due to additional investment in 5G or maybe a 6G network? And also you've mentioned that you're currently training your AI models. Does that entail a significant amount of investment?

謝謝，我負責病人證券的電信服務。我想先詢問一下你們的資本支出。我想知道當前的資本水準是否已經下降。我想了解資本支出的未來預測。那麼，什麼時候我們會看到由於對 5G 或 6G 網路的額外投資而導致的資本支出再次增加？您也提到您目前正在訓練您的 AI 模型。這是否需要大量投資？

Second question is that you've announced your shareholder return or value enhancement related plan back in November of 2024 and you've listed many objectives in improving and enhancing shareholder return, increasing ROE. I would like to understand. What are the specific plans that will drive that or make that possible and also another question is on your share buyback.

第二個問題是，早在 2024 年 11 月，您就已經宣布了股東回報或價值提升相關計劃，並且列出了許多改善和提高股東回報、提高 ROE 的目標。我想了解一下。有哪些具體計劃將推動或實現這一目標？

You've disclosed that you will be buying back and making cancellation of KRW250 billion of Treasury shares. Up until 2028, your objective is to do share buyback and cancellation in the amount of KRW1 trillion. So does that mean that from 2025 up to '28, you will be making KRW250 billion every single year. I just want to check whether that understanding is correct.

您已透露將回購並註銷 2500 億韓元的庫存股。到 2028 年，你的目標是回購和註銷 1 兆韓元的股票。那麼這是否意味著從 2025 年到 2028 年，你每年將賺 2,500 億韓元？我只是想檢查一下這種理解是否正確。

Now first responding to the question on CapEx and depreciation, CapEx for KT and all of its subsidiaries, basically our plan is to maintain it at 2024 levels.

現在首先回答有關資本支出和折舊的問題，對於 KT 及其所有子公司的資本支出，我們基本上計劃將其維持在 2024 年的水平。

So on a standalone basis, although investment into B2C is going to go down because of AICT business growth and further scaling up of IT, we think that the level is going to be flat year over year basis.

因此，從獨立角度來看，儘管由於 AICT 業務成長和 IT 規模的進一步擴大，對 B2C 的投資將下降，但我們認為該水準將同比持平。

Now regarding the next question on -- CapEx for 5G and 6G cycle, for 5G investment depreciation period has ended, and for 6G investment, I think there's not big of a probability. For an investment into 6G in two to three years' time, I say that because the technical standard is going to be standardized in 2028 or '29, and then investment will follow. So this is quite far out into the future.

現在關於下一個問題——5G 和 6G 週期的資本支出，對於 5G 投資折舊期已經結束，對於 6G 投資，我認為可能性不大。對於兩到三年內對 6G 的投資，我這樣說是因為技術標準將在 2028 年或 2029 年標準化，然後才會進行投資。所以這是相當遙遠的未來。

He also talked about a possibility of an additional spectrum allocation for 5G network at this point in terms of the necessity of having that additional spectrum, that's not very, I guess, substantive and also the government at this point does not have a clear government policy on spectrum allocation, so we do not consider that as one of risk factors for CapEx.

他還談到了目前為 5G 網路分配額外頻譜的可能性，但就額外頻譜的必要性而言，我認為這並不是實質性的，而且政府目前還沒有明確的頻譜分配政策，所以我們不認為這是資本支出的風險因素之一。

And moving on to your question about the implementation of the value up plan that we disclosed in November at that time we also shared specific four action plans, and over the course of this year we will faithfully carry on with those action plans.

關於你提到的價值提升計劃的實施問題，我們在11月份披露過，當時我們也分享了四項具體的行動計劃，今年我們會忠實地執行這些行動計劃。

And also just to elaborate, these are nothing new, but in order to make sure that we implement the value up plan as was communicated, we are mindful of two aspects. One is, how we can drive an improvement and bottom line the profit so that we may facilitate and take an appropriate form of shareholder return and the specifics we will of course decide as we go through the Q1 dividend approval through the BOD.

另外詳細地說，這些並不是新鮮事，但為了確保我們按照傳達的方式實施價值提升計劃，我們注意兩個方面。一是，我們如何推動改進並實現利潤底線，以便我們能夠促進並採取適當形式的股東回報，具體細節我們將在董事會批准第一季股息時決定。

And yes, we did make the disclosure that we will be canceling KRW250 billion of Treasury shares, but because our foreign ownership limit has been fully reached at above 40% level, we will make appropriate market communications and we will come up with ways to maintain the corporate value because there are some technicalities that we need to be mindful of. So in light of all of that, we will make the appropriate.

是的，我們確實披露了將取消2500億韓元庫存股的消息，但由於我們的外資持股比例已達到40%以上的上限，我們將進行適當的市場溝通，並想出辦法來維持公司價值，因為有一些技術細節我們需要注意。因此，考慮到所有這些，我們將做出適當的決定。

And that KRW250 billion that we've disclosed and you asked whether out of that KRW1 trillion over the course of four years, will there be the same amount that will be canceled or bought back every single year. Of course it's pending BOD. Approval, but I can say at this point that there is quite a bit of possibility that that may be the case. But of course it will depend on the growth and the size of the profit that we are able to generate, but I'm sure I believe that we do have an upside.

我們已經披露了 2500 億韓元，您問到在四年內這 1 兆韓元中，是否每年都會取消或回購相同數量的資金。當然，這還有待董事會批准。同意，但是我現在可以說，這種情況很有可能發生。但這當然取決於我們能夠創造的成長和利潤規模，但我確信我們確實有上行空間。

Next question, please.

請回答下一個問題。

Kim Hong-shi, Hana Securities.

韓亞證券金泓時（Kim Hong-shi）

I have two questions I would like to ask. On the back of reorganization that the company undertook, there was an impact on cost savings. I would like to understand you could basically give me a labor cost figure or also the overall expense or cost impact since you were able to reduce the headcount both on headquarter basis as well as consolidated basis.

我有兩個問題想問。公司進行的重組對成本節約產生了影響。我想了解您能否給我一個基本的勞動成本數字，或整體費用或成本影響，因為您能夠在總部和合併基礎上減少員工人數。

We'd like to get some color as to what the impact on the cost savings were. And the second question is that usually if you look at past practices at the HQ level, the parent company level, the KT has paid back or did shareholder returns, taking about half of the profit that was generated, and recently there's a saying people are saying that the dividend and flow that you get from the subsidiaries will also be used as resources.

我們想了解這對成本節約有何影響。第二個問題是，通常如果你看看總部層面、母公司層面的過去做法，KT 已經償還或回報股東，拿走了所產生的利潤的一半左右，最近有種說法是，從子公司獲得的股息和流量也將被用作資源。

Resources for shareholder returns. So I would like to understand as to what the logic behind this thinking is. If you could clarify that would be quite helpful because the divided inflow with regards to the subsidiaries may fluctuate and does fluctuate. So if you could provide a bit more color, that will help us making our forecasts.

股東回報資源。所以我想了解這種想法背後的邏輯是什麼。如果您可以澄清這一點，將會非常有幫助，因為與子公司相關的分配流入可能會波動，而且確實會波動。因此，如果您可以提供更多詳細信息，這將有助於我們做出預測。

Regards to the cost saving impact from the organization related revamping, it's difficult to give you a specific figure per se, but there were 4,400 people who left the retirees, so that would be the basis upon which we could build our estimation.

關於組織機構改組對成本節約的影響，很難給出一個具體的數字，但有 4,400 人離開了退休人員，因此我們可以以此為基礎進行估算。

So out of that 4,400 headcount that that was the headcount reduction, 2,700 people completely left, so it was a complete retirement and 1,700 people transferred to the subsidiary that we set up.

因此，在裁員的 4,400 名員工中，有 2,700 人完全離開，也就是完全退休，還有 1,700 人轉移到我們設立的子公司。

So that 1,700 people that moved to the subsidiary, they will be receiving 70% of their previous wage level, and the difference had been settled all at once.

因此，調到該子公司的1,700名員工將獲得原來薪資水準的70％，差額已一次解決。

So I believe that these elements could help you make that calculation in terms of the labor cost savings as well as the expense that is attached to these headcounts that move to the subs.

因此，我相信這些因素可以幫助您計算節省的勞動力成本以及轉移到潛艇的員工人數所產生的費用。

And the second question, we lost your connection in the middle, so I don't know if my understanding of your question is completely correct, but I take it to be the adjusted net profit on a separate basis and the logic behind dividends.

第二個問題，我們中間斷掉了你的聯絡方式，所以我不知道我對你的問題的理解是否完全正確，但我認為它是單獨基礎上的調整後淨利潤和股息背後的邏輯。

So the dividend income that we get from our subsidiaries, it will come under our net profit, and yes, it does qualify for the qualify as resources that could be used for dividend payout to our shareholders.

因此，我們從子公司獲得的股息收入將計入我們的淨利潤，是的，它確實有資格作為可用於向股東派發股息的資源。

And in terms of the adjusted net profit, the elements that actually is going to be adjusted are, for instance, the non-cash invested securities valuation gain or valuation loss. So basically these elements work to offset or smooth out volatilities and fluctuations in profit.

就調整後的淨利而言，實際要調整的因素包括非現金投資證券的估值收益或估值損失。因此，這些因素基本上可以抵消或平滑利潤的波動。

Of the adjustment that was reflected for 2024 numbers, it was KRW120 billion-plus. I hope this answered your question. Did it?

2024 年數字所反映的調整額超過 1,200 億韓元。我希望這回答了你的問題。是嗎？

(Operator Instructions) We would like to now close the Q&A session. Thank you everyone for your questions and your interest, and thank you once again for joining us despite your busy schedules. This brings us to the end of FY2024 earnings release. Thank you.

（操作員指示）我們現在想結束問答環節。感謝大家的提問與關注，再次感謝大家在百忙之中抽空參加我們的活動。這就使我們2024財年收益發布的結束。謝謝。

Statements in English on this transcript were spoken by an interpreter present on the live call. The interpreter was provided by the company sponsoring this event.

本記錄中的英文陳述是由現場翻譯說出的。翻譯由贊助此活動的公司提供。