KT Corporation (Hangul: 주식회사 케이티), formerly Korea Telecom, is a South Korean telecommunications company, mobile network operator (MNO) and mobile virtual network operator (MVNO). KT is the large wireless carrier in South Korea, with 13.5 million subscribers as of Q4 2023.
The formerly fully-state-owned firm (the government's National Pension Service currently owns 12.19% shares and is the largest shareholder) is South Korea's first telecommunications company and is a major supplier of the local landline and broadband internet market, serving about 90 percent of the country's fixed-line subscribers and 45 percent of high-speed Internet users. After selling its wireless affiliate Korea Mobile Telecom in 1994, KT returned to the wireless market with the creation of PCS carrier KTF in January 1997.
The company's merger with KTF, its wireless subsidiary, in 2009 made it the country's ninth largest chaebol (conglomerate) with nearly 24 trillion won in assets as of 2009.[3]
In January 2011, KT launched unified brand "Olleh" for both fixed-line and cellular broadband services.[4] However in 2016, they decided to revert to "KT" for landline and cellular broadband services.[5]
Company overview
Founded in 1981 as a public utility, KT played a major role in Korea's development in the information technology hub sector. KT sold its wireless affiliate in 1994, founding another in 1996 and becoming, along with LG Dacom, one of Korea's earliest Internet service providers. In 2001 KT acquired struggling broadband provider Thrunet, then the largest broadband company in Korea, which paved the way for KT to dominate the broadband market.[6] In 2009, KT merged with its wireless subsidiary KTF, paving the way to the integration of landline and cellular services. Ever since KT introduced the Apple iPhone to South Korea, it has been constantly seeking new business areas, such as media, e-commerce, and global business partnerships. The company has a well-distributed shareholder structure under which the National Pension Service (NPS) is the largest shareholder (6.81% as of December 31, 2012), but NPS holds no managerial rights over the company.[7] Under the current shareholder structure, no controlling shareholder exists.
History and milestones
Before privatization
- December 10, 1981: The company becomes incorporated as KTA.[8]
- 1984: Tenth in the world to develop the electronic switch TDX-1.
- 1987: Nationwide automated long-distance network completed.[8]
- 1991: Company renamed Korea Telecom.
- 1993: Total of approximately 20 million telephone lines installed (only 4.5 million existed in 1982), laying groundwork for the emerging information society.
- 1995: Mugunghwa Satellite No. 1 launched.
- 1996: Mugunghwa Satellite No. 2 launched.
- 1996: PCS and CT-2 license acquired. KT Freetel (wireless carrier
Corporate governance
KT's Board of Directors (BOD) consists of three non-independent directors and eight outside directors, totalling eleven directors as of March 2012. The outside directors are nominated by the Outside Director Nomination Committee based on their expertise and business leadership, and hold office for less than three years. The BOD chairman is selected from among the outside directors and serves for a one-year term. The BOD consists of five standing subcommittees and two ad hoc subcommittees. If required, additional sub-committees may be set up. The current internal directors are Chang-Gyu Hwang (Chairman & CEO), Hyeon-myung Pyo and Il-yung Kim, and the external directors are Eung Han Kim (Board Chairman), Chun-Ho Lee, Hyun-nak Lee, Byong-won Bahk, Keuk-je Sung, Sang-Kyun Cha, Do-Kyun Song.[38]
Services
Wireless
As of 2012 KT customers can receive the services on any of radio frequency band assigned, one or more of radio interfaces.[39]
Global business
Bangladesh
On April 27, 2017, KT announced the launch of a 'GiGA Island' in Bangladesh, the result of multilateral partnerships with the Bangladesh government, international organizations, public institutions, and non-governmental organizations (NGOs). KT connected the Moheshkhali Island to the inland areas by installing the wireless network technology 'GiGA Microwave' and used copper-based KT's providing giga-level internet solution 'GiGA Wires' to circulate network traffic within the island. With the 'GiGA Microwave', the island could successfully receive 500 Mbit/s internet service, and the 'GiGA Wire' enables the island's internet speed at the most 100 Mbit/s. This enabled more than 30% of the residents in Moheshkhali to communicate with the world through high-speed internet.
Brunei
In 2012, KT contracted with the Brunei government to establish National Data Center (NDC) and its operation.[50]
Mongolia
KT Sports
KT Corporation sponsors an e-sport team and a number of sports teams and athletes, some of which were inherited from KTF before the merger. The corporate headquarters of KT Sports is located in Suwon, where its baseball and basketball teams are located.[60]
In addition to the teams, KT is the main sponsor of the South Korea national football team[62] and several LPGA of Korea Tour golfers.[63] KT was one of the official sponsors of the 2002 FIFA World Cup held in Korea and Japan.
One of KT Corporation's major corporate rivals is SK Telecom. Match-ups between teams owned by both companies are dubbed the "Telecommunications Derby" by the media.[64][65]
Smart grid investment
KT is currently involved in the Jeju Smart Place test bed project led by Korea's Ministry of Trade, Industry and Energy, which is being pursued for the purpose of testing and developing smart grid business models. The project is being conducted on 6,000 households in Jeju island's Gujwa-eup area, and is scheduled to be conducted over a period of 42 months from May 2009 to May 2013. The aim of the project is to provide an integrated energy management service and achieve the means for efficient energy usage by adopting renewable energy sources and energy storage devices. The project is being executed by the KT Consortium, which is composed of KT and fourteen other companies, including Samsung SDI, Hyosung, Samsung Electronics, and four contractors, with the focus being to conduct demonstration tests on electric power-communication convergence business models.
Controversy
KT Internet slowdown incident
On April 17, 2021, it was revealed that the 10-Gigabit Internet plan used by YouTuber It-seop was actually being serviced at 100 megabit. It-seop released the data on the speed test in the video, after which the controversy was published, and KT users repelled it.[69]
On April 19, 2021, KT explained that "the customer's information was incorrectly transferred due to an error in the process of moving the studio recently" and "For this reason, only 100 megabit would have been provided." Subsequently, KT officially acknowledged and apologized for causing inconvenience to customers at the 6 o'clock meeting.[70]
Malware incident
In June 2024, following a JTBC investigation, it was revealed that KT remotely installed malware on the computers of 600,000 subscribers in order to throttle, disrupt and monitor their usage of the torrent protocol, a popular peer-to-peer file transfer protocol. A police investigation on the matter is ongoing.
External links
References
- Kt, 김영섭 후보 Ceo 최종 승인^
- KT Corp. - Financial Highlights kt.com, retrieved 2021-01-23^
- KT Releases United Brand 'QOOK' Newsworld, May 9, 2009, retrieved September 5, 2015^