ABOUTABOUT THIS THIS REPORT REPORT This Thisreport report is kt’s is 10thkt’s 10th integrated integrated sustainability sustainability report report to communicate to communicate with with stakeholdersstakeholders more more transparently transparently and developand develop performances performances for sustainable for sustainable management.management. ReportingReporting Time Time Frame Frame and and Boundary Boundary • Reporting• Reporting Time Time Frame Frame ThisThis report report outlines outlines kt’s kt’sachievements, achievements, initiatives, initiatives, and anddata data that thatspan span fromfrom January January to December to December 2014. 2014. Its reporting Its reporting period period is one is oneyear, year, and andthe the previousprevious report report was waspublished published in June in June 2014. 2014. This Thisscope scope extends extends to April to April 20152015 for major for major business business activities, activities, and inand cases in cases of some of some quantitative quantitative data, data, threethree year’s year’s worth worth data data is presented is presented to help to help readers readers identify identify relevant relevant trends. trends. • Reporting• Reporting Boundary Boundary The reportThe report cover cover 510 510business business sites sites including including the head the head office office and andbranches branches in thein countrythe country as a asmajor a major reporting reporting target. target. “kt” “kt”in this in thisreport report refers refers to kt’s to kt’s separateseparate company, company, except except for subsidiaries for subsidiaries which which are targets are targets for connection for connection in accordancein accordance with with K-IFRS. K-IFRS. In cases In cases of reporting of reporting performances performances by by subsidiariessubsidiaries and andoverseas overseas branches, branches, a relevant a relevant explanation explanation was wasincluded included GiGAtopia in thein report. the report. The businessThe business boundary boundary for each for each material material issue issue was waspresented presented on pageon page 23 of 23 this of reportthis report in accordance in accordance with withthe GRI the G4 GRI Guidelines. G4 Guidelines. kt Integrated Report 2015 ReportingReporting Principles Principles and and Assurance Assurance • Reporting• Reporting Principles Principles To complyTo comply with with the internationallythe internationally accredited accredited reporting reporting standards, standards, this this reportreport followed followed comprehensive comprehensive GRI GRI(Global (Global Reporting Reporting Initiative) Initiative) G4 G4 guidelines,guidelines, the internationalthe international guideline guideline for sustainability for sustainability reporting, reporting, and and was waswritten written in accordance in accordance with with the “IR”the “IR”Framework Framework of the of Internationalthe International IntegratedIntegrated Reporting Reporting Council Council (IIRC). (IIRC). • Assurance• Assurance To ensureTo ensure the reliabilitythe reliability and andtransparency transparency of reporting of reporting processes, processes, data, data, and andreported reported content, content, this reportthis report was wasassured assured by an by independent an independent external external assuranceassurance service service provider. provider. CharacteristicsCharacteristics of This of This Report Report This Thisreport report connects connects material material issues issues regarding regarding sustainability sustainability to business to business strategystrategy and andfocuses focuses on kt’s on kt’sshared shared value value to promote to promote the people’sthe people’s convenience.convenience. The reportThe report also also shares shares the company’sthe company’s strategic strategic directions directions on theon currentthe current and andfuture future business business through through major major business business activities, activities, achievements,achievements, and planningand planning reports reports based based on management on management strategies. strategies. To increaseTo increase the effectivenessthe effectiveness of the of performancethe performance report, report, the reportthe report presentspresents issues issues for stakeholders for stakeholders in major in major sectors sectors and KPIand (Key KPI (KeyPerformance Performance Indicators).Indicators). In addition, In addition, matters matters that thathave have high high importance importance in terms in terms of of sustainabilitysustainability and andare mainly are mainly carried carried out byout kt by were kt were reported reported in depth in depth as as “Special“Special Issues.” Issues.” InformationInformation and andstatements statements for prediction for prediction based based on management on management goals goals suchsuch as mid as midand andlong-term long-term goals goals and andfuture future benefits benefits were were written written on on the basisthe basis of investment of investment plans plans and andfuture future market market analysis, analysis, but duebut dueto to the uncertaintythe uncertainty in the in managementthe management environment, environment, there there might might be some be some differences.differences. For ForMore More Information Information PleasePlease contact contact us for us additional for additional information information or to or send to send inquiries inquiries about about this this report.report. • Address• Address : kt CSV : kt CSVCenter, Center, Public Public Relations Relations Office, Office, 178, 178, Sejong-daero, Sejong-daero, Jongno-gu,Jongno-gu, Seoul Seoul • Tel •+82-2-732-5055 Tel +82-2-732-5055 Awards 2014 CONTENTS Creating Value beyond Connectivity, GiGAtopia Awards won From Date 04 Chairman of Board of Directors’ Message NCSI(National Customer Satisfaction Index)-ranked 1st in the local/long-distance call, Korea Productivity Center Jan.8 05 CEO’s Message Theinternet best call and nationalinternational call company sectors that provides the fastest and most innovative ICT-based telecommunications and convergence services for the convenience of customers. Winner of 2014 IF Design Award in Communication Design Category IF Design Exhibition Hamburg Jan.24 I. Overview of kt's Sustainability 06 Company Overview The most Admired Companies, All Star Korean Management Association Consulting Feb.17 13 Governance Top 50 Telecoms Operator Brands 2014-ranked 1st in brand value among Korea’s Brand Finance Global Feb.19 telecommunications companies 17 Stakeholder Engagement 18 Ethics Management Winner in the two category of ‘Outstanding LTE Contribution’ and ‘Outstanding Overall Global System for Mobile communications Feb.26 Mobile Technology’ at the GSMA Global Mobile Awards 2014 Association(GSMA) 20 Risk Management 22 Materiality Test INNO STAR 2014-Best Innovation award in the ‘IPTV’ sector Korea Management Association Mar.27 24 Special Issue 2014 Smart Brand-Ranked 1st in the Digital/Telecommunication Sectors as ‘olleh’ Korean Management Association Consulting May.28 Winner of grand prize of Sustainability Management sector at Korea Management Awards II. GiGAtopia_Create the Future Korean Society of Consumer Studies Jul.16 2014 32 Leading the Wired and Wireless Communications Market Winner of 2014 Red Dot Design Awards in Communication Design Category Design Zentrum Nordrhein-Westfalen Aug.18 42 Leadership for Future Technology 2014 NBCI(National Brand Competitiveness Index)-ranked 1st in Internet service, Korea Productivity Center Sep.1 50 Enhancement of Customer Value IPTV and International Call Sectors 58 Creating Shared Value through GiGA Story Winner of Integrated Report 2014 in Korea Reader’s Choice Awards 2014 Korea Standards Association Sep.4 III. Sustainable Value DowJones(US)/RobecoSAM(Swiss-based investment Selected to be included in the DJSI World index for the 5th straight year Sep.11 company 68 Expansion of Win-win Growth Creation of Value for the Local Community 2014 Korea Standard-Service Quality Index-ranked 1st in the wireless and 73 Korea Standards Association Sep.18 ultra high-speed internet sectors 80 Talent Management 2014 KCSI(Korean Customer Satisfaction Index) – ranked 1st in the ultra high speed 91 Eco-friendly Management Korean Management Association Consulting Oct.6 internet, local/long-distance call, internet call and international call sectors Appendix Winner of Sustainability Management sector at Global Standard Management Awards 2014 Korea Management Association Registration Oct.22 101 Sustainability Indicators 2014 CPLI(Climate Performance Leadership index)_ranked 1st in the telecommunication CDP in the U.K., CDP Korea Oct.23 106 Third-Party Assurance Statement sector Winner of grand prize of Telecommunication sector at the Next Society CSR Summit 2014 Next Society Foundation Nov.18 Winner of Creativity sector at Mecenat Awards 2014 Korea Mecenat Association Nov.26 Winner of Creativity and Innovation sector at the 1st Porter Prize for Excellence in CSV The institute for Industrial Policy Studies Dec.3 Cover Story Making Korean communications history, kt has presented a new paradigm in the communications market with “GiGAtopia.” The vivid color expressing the high speed on the cover depicts kt realizing “GiGAtopia” through innovative ICT services. kt Integrated Report 113 Creating Value beyond Connectivity, GiGAtopia The best national company that provides the fastest and most innovative ICT-based telecommunications and convergence services for the convenience of customers. Jeremy Rifkin,