KT’s Experience in Development Projects March 2011

Contents KT Overview Case Study Closing Remarks Introduction Global Business Case Study Rwanda / Indonesia / Nepal Lessons Learned Closing Remarks Reference KT Financial Highlight KT Global ICT Project ICT Project in Rwanda ICT Solutions(Managed, e-Gov, u-City, u-Cloud, M2M) PPP&ICT project(what? Why? Position, definition)

Korea and ICT KT Overview Bolstered by policy to promote the ICT industry, Korea became the Broadband Wonderland Public (2010) Private (2010) e-Government (UN) index (No. 1) Broadband Penetration (Fiber)* - 17.9 subscribers per 100 (No.1) Mobile Penetration (post pay) - 57% (’01)  104% (’10) Mobile Data Usage (2010) - ATPU**: 271MB (3.2 times global avg.) Smartphone Subscribers - 1mil (Jan.’10)  10mil (Mar. ‘11) World Class IPTV Services Fast Growing Markets - Broadband: 7.8mil (’01)  17.2mil (’10) - Mobile: 3.2mil (’01)  50.7mil (’10) Republic of Korea 0.8785 1 *As of Dec. 2010 ** ATPU: Average Traffic Per User

Telephone Subscribers Broadband Subscribers Introduction KT Overview As Korea’s leading telco, KT has been leading the Korean telecom industry, including the latest Smart Revolution Dec. 1981 KT Corporation established Aug. 2002 Completely privatized Apr. 2006 World’s first WiMAX service Nov. 2008 Real-Time IPTV Jun. 2009 Merged with KTF (mobile subsidiary) Jan. 2010 3W (WCDMA, WiFi, WiMAX) services USD 17B 19.4M 7.4M 16M 31,000 Telephone Subscribers Broadband Subscribers Mobile Subscribers # of Employees Revenue (2010) (As of Dec. 2010)

“Global ICT Convergence Leader” New Businesses KT Overview Fixed-Mobile convergence services, smart solutions, and cloud computing are recent additions to KT’s services ICT Trends “Global ICT Convergence Leader” Cloud Computing (uCloud) WAC* Participation Smartphone Promotion and Data Explosion “Smart Work” Solutions IPTV Fixed-Mobile Convergence Cloud Computing Mobile Applications Social Communication and Collaboration Video Contents Context-Aware Computing Source: Gartner (2010) *Wholesale Application Community

Global Business KT Overview Global IT Business KT has been expanding its business into the global arena, with its experience and expertise in telecom development Strategies Projects Global IT Business Build telecom networks, provide solutions and managed services Rwanda National Backbone Bangladesh Internet & PSTN Network Data & Wholesale Deliver wholesale and global data services based on KT´s global network and partnerships Voice retail & wholesale Global data services Global and regional satellite services Global Investment Explore investment opportunities mainly in mobile sector in regions of lower penetration rates Russia NTC (Mobile) Uzbekistan (WiMAX) Mongolia Telecom

National Backbone Network National Fiber Optic Cable Rwanda IT Hub Case Study Rwanda aims to be the IT hub for Central Africa by transforming itself into a knowledge society Agriculture- Based Economy Knowledge- Based Economy Vision 2020 NICI 1 (’01~’05) NICI 2 (’06~’10) NICI 3 (’11~’15) NICI 4 (’16~’20) Develop economic base and support accelerated growth Strengthen economic environment and promote growth towards predominantly information and knowledge based economy (PIKE) Facilitate process to sustain economic development and growth towards PIKE Consolidate process towards achieving PIKE and middle income status Given Rwanda’s landlocked geography, it’s hard to argue with a plan that will provide some of the world’s poorest people with access to the one of the richest resources: knowledge ICT is a cross-cutting edge area to vision 2020 More than 220 institutions connected: district offices, universities, hospitals... Sectors: e-gov’t, e-Agriculture, e-Health, e-education KT Projects WiBro and FOC Network National Backbone Network National Fiber Optic Cable 2007 2008 2009 *NICI: National Information and Communications Infrastructure 6

Rwanda IT Hub Case Study Implementation of the NICI plan helped Rwanda to achieve economical growth and ICT sector development Benefits NICI Pillars Education Economic Indicators GDP (US$ billion) Human Resource Development 2000 2008 GNI per capita(US$) 250 440 School enrolment(%) 48 55 5.06B Infrastructure, Equipment and Content CAGR 14.4% 1.73B Economic Development Social Development 2000 2008 E-Government and E-Governance ICT Indicators Private Sector Development Telco Revenue (% of GDP) Rural and Community Access 3.1B Subscribers (per 100) 2000 2008 Mobile 0.5 13.6 Internet 0.0 0.1 Legal&Regulatory provisions and standards CAGR 15.2% 1.0B National Security Law and order 2000 2008

Indonesia ICT Training Center Case Study Indonesia pursues to develop skilled ICT specialists, and is promoting economic growth through public and private partnerships Overview Benefits Training 10,000 ICT personnel per year expected National ICT curriculum standards established (network and system administrators, programmers, etc.) Recognized and licensed as official ICT educational institution Positioned as the central ICT hub for learning and information exchange Visited and benchmarked by other countries Smaller ICT centers promoted in Southeast Asia but none comparable to Indonesia in size Area/Capacity: 100,000ft2, / 425 people Enhance ICT skills and competitiveness of public servants Expedite e-Government through HR development 교육센터가 비즈니스 모델이 있는지?

Nepal GIDC Case Study Nepal established the first Government IDC (GIDC) to promote e-Government Overview Benefits Top priority project in the Nepal’s e-Government Master Plan (ADB, ‘07) Next priority projects: (2) NID, (3) Land Registration, (4) Vehicle Registration ICT operational know-how transferred 20 ICT operators trained Investment minimized through consolidated GIDC common facilities Project Period: 2007~2009 Area: 1,317m2(2 floors) System set-up: Backbone switch (Gigabit) 4EA, Security equipment 3EA, Server 11EA Bandwidth: Backbone 1Gbit, Internet Connection 2M*2(with ISP providers) ICT Training Center * Of 26 government ministries, 6 ministries are using the facilities * No private IDC in Nepal

Lessons Learned Case Study Top-down holistic approach, large funds and focusing on ICT for development are key points in ODA projects Holistic Approach Adequate Financing Emphasis on ICT Projects based on longer- term master plan Continuous ancillary supports for projects and the roadmap Larger funding requirements (USD 12B for Korean e- Government projects) Relatively limited/fragmented funding ICT based services in developing countries promotes overall economic growth (OECD, 2009) 10% increase in BB penetration increases 1.38% of GDP

Closing Remarks ICT Led Development ICT Recipient Companies MDB ICT enabled infrastructure is the key to successful economic and social development. Governments, MDB, and participating ICT companies need to strategically collaborate ICT Led Development Technologies Vision/Strategies Financing ICT Companies Recipient Countries MDB Technologies/ Expertise Commercial efficiency Clear visions and strategies Accountability and transparency Strategic development partnership Increased private participation

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