Change in Dividend Payments
1692-1 Seocho-dong, Seocho-gu, Seoul
Financial Office, Investor Relations
November 29, 2013
Change in Dividend Payments
As reported to the Board of Directors of KT Corporation ("KT") today, KT's management concluded that it has become difficult for KT to maintain the minimum dividend of KRW 2,000 per share as previously announced by KT, due to KT's expected results of operations, and expects the dividend per share in respect of FY2013 to be below KRW 2,000 per share. The dividend for FY2013 will be finalized at the Board of Directors' meeting and General Shareholders' Meeting early next year. Dividend payments in respect of FY2014 will be announced upon further view of KT's operations and business outlook.
Having duly considered KT's current circumstances, KT's management and Board of Directors feel that a change in the dividend payment is necessary in order to enhance its corporate value and focus on improving its core competency. KT will make its best efforts to improve its business performance with new incoming chief executive officer.
KT plans to improve its business performance next year by strengthening its core telecommunications business with an emphasis on the wireless business, which has been recovering its competitiveness with the launching of wideband LTE-A. Also, KT will put forth strong efforts in improving its cost structure through gradual reduction of various expenditures, such as capital expenditures.
KT Investor Relations
Tel : +82-2-3495-3557, 3558, 3563, 3564,5529, 5343, 5344, 5347
Final dividend payments by KT Corporation in respect of FY 2013 and any future periods are subject to numerous factors, including any legal and regulatory restrictions on KT Corporation's ability to pay dividends, management's assessment on whether a particular dividend amount, if any, is prudent under the facts relevant at the time (including prevailing business and market conditions, as well as KT Corporation's financial condition and results of operations) and approval of dividend payment by KT Corporation's Board of Directors and its shareholders.
This document contains certain statements that may include "forward-looking statements." All statements other than statements of histori cal fact included herein are "forward-looking statements." These forward-looking statements are often identified by the use of forward-lo oking terminology such as "believes," "expects," "plans to" or similar expressions, involving known and unknown risks and unc ertaintie s. Although KT believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. You should not place undue reliance on these forwa rd-looking statements, which speak only as of the date of this document. KT's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including the risk factors discussed in KT's periodic reports that are filed with or furnished to the Securities and Exchange Commission and available on the SEC's website (http://www.sec.gov). All forward-loo king statements attributable to KT or persons acting on its behalf are expressly qualified in their entirety by these risk factors. Other th an as required under the securities laws, KT does not assume a duty to update these forward-looking statements.