Morningstar Rating

Stock Research and Analysis

by Allan C. Nichols, CFA

Bulls Say

KT continues to generate solid free cash flow despite government intervention.
Management expects nontelecom businesses to grow to 45% of total revenue from 27% by 2015.
The firm's IPTV subscriber base grew 24.5% during the past year to 4.7 million. Read more 

Bears Say

KT lowered its monthly fees by KRW 1,000 in 2011 and is providing 50 free text messages to appease the government.
By expanding into nontelecom businesses, KT is moving away from its core competence and economic moat into more competitive businesses.
Because of weak revenue and earnings in 2012, KT cut its dividend. Read more 

Management

On Dec. 16, 2013, KT's board announced the hiring of Hwang Chang Gyu as its new CEO. He replaces Hyun-Myung Pyo who was serving as acting CEO while the board conducted a search for a new CEO after CEO Suk-Chae Lee resigned in November because of ongoing   Read more 

Profile

KT Corp. is the largest fixed-line telecom operator in South Korea, with 18.2 million customers, including 3.5 million VoIP subscribers. It is the largest broadband firm,  Read more 

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