Germany - Korea Germany - Korea IT Cooperation IT Cooperation April 2005 Yong-Kyung LEE, Ph.D. President & CEO, KT

KT and the Korean IT Market

History of KT History of KT 1981 KT Corporation Established 1993 Telephone lines surpass 20 M 1999 Local telephony market opened 2002 Fully Privatized 11.85 22 Million 6.1 Million Billion USD (Net Profit: 2.1 Billion USD) Revenue (2004) Telephone Subscribers Broadband Subscribers Population: 47.8 M Household: 15.3 M As of December 2004

Market share of KT Group Korean IT Market Korean IT Market Market share of KT Group Fixed Line 23 M (48 %) Telephone (94%) Hanaro (6%) Mobile 36 M (75 %) Internet Users 36 M (68 %) Mobile Broadband Fixed line penetration rate 47.5% Mobile phone penetration rate 75.2% Internet Users usage rate 75% BB internet penetration rate 24.31% (32%) SKT (51%) LGT (17%) etc (14%) Thrunet (11%) Broadband 12 M (78 % of total households) (51%) Hanaro (24%) Unit: Thousand (Penetration)

Broadband in Korea Broadband in Korea Broadband Subscribers (per 100 Users) e-Life in Korea Korea Stock trading 30 % 50 % 17 % 38 % Banking Commerce Gaming Canada Iceland Denmark Belgium Netherlands Sweden Switzerland Japan USA 5 10 15 20 25 On-line Off-line DSL Cable Modem Others Source: MIC, NCA, KSDA

On-line Games in Korea On-line Games in Korea

New value-added services Vision 2010 Vision 2010 Business Expansion New value-added services New Business Engines u-Computing Digital Content Expanded Core Biz Home Networking VoIP MVoIP Wire & Wireless Next G Mobile u-Sensing Core Biz Bundle Service Media Overseas Biz IT Service

National Vision “ICT 839” National Vision “ICT 839” 9 New Growth Engines 8 New Services 3 Infrastructure WiBro DMB Home Networking Telematics RFID-based W-CDMA DTV Broadcasting Internet phone (VoIP) Broadband Converged Network (BcN) U-Sensor Network (USN) Next Generation IP Address (IPv6) Next Generation Mobile Comm Digital TV Home Networking IT SoC Next Generation PC Embedded S/W Digital Contents Telematics Intelligent Robot

New Services and Technologies

bizmeka bizmeka IT outsourcing service for SMEs Service launch  Sep. 2001 Revenue  USD 80 M(Dec.2004) Subscribers  400,000 Applications Enterprise Contents Consulting IT training bizmeka Platform Broadband Network

WiBro Wibro While on the move Anywhere at Anytime High Data Rate Low Wireless Broadband License Acquisition Feb. 2005 Trial Service Nov. 2005 Commercial Service Apr. 2006 While on the move Anywhere at Anytime High Data Rate Low Access Cost Low Access Cost > 60 Km/H Seamless 1Mbps Low cost Cell Phone PDA Handheld PC Laptop

Wibro in our lives Wibro in our lives

U-City U-City All-in-one network Ubiquitous Communication Environment Economically Vibrant Intelligent City u-Government u-Health u-Learning u-Office                 u-Traffic u-Space u-Home

Germany - Korea Germany - Korea IT Cooperation IT Cooperation

Strengths Strengths Core IT Technologies Strong Software & e-Commerce Manufacturing Competitiveness Global Experience Network Construction Broadband Applications Marketing New Businesses Global IT Test-bed

Cooperation Cooperation KT’s Overseas Projects Strategic Partnership Network Construction Consulting 2002 TM  BB Mgmt/Opr 2003 VNPT  BB N/W 2004 TOT  BB N/W 2002 CT  BB Mgmt/Opr Strategic Partnership 2004 BTTB  Fixed N/W Solution 2004 CNC  BB N/W Mgmt 2004 AsiaTech  BB N/W

Thank You