KT is a company whose earnings center on telecommunications, primarily mobile, high-speed internet, and IPTV, layered with subsidiaries in card payments (BC Card), data centers, cloud, media, and real estate. The structure combines the steady monthly cash flow of telecom fees with growth businesses in enterprise (B2B) AI, cloud, and data centers, and annual revenue runs around ₩28 trillion. At the end of March the company reaffirmed a 2028 consolidated ROE target of 9-10% along with share buybacks and cancellations, and in May it laid out a plan to return 50% of standalone adjusted net profit over 2026-2028, raised the minimum DPS to ₩2,400, and set a standalone adjusted operating profit target of ₩1.5 trillion for this year. First-quarter results were weak due to fallout from a hacking incident and a difficult base effect, but operating profit more than doubled versus the prior quarter. What stands out recently is that KT combines the highest ROE among the three domestic carriers (9.8%) with the lowest multiples, a P/B of 0.76x, and clear shareholder returns; on the other hand, the disappearance of one-off gains booked in 2025, lingering effects of the hacking incident, and slow top-line growth of roughly 3% a year are conditions to keep in mind.
At-a-glance assessment financial health · growth · profitability · valuation
- Revenue rose 6.9% year over year, and the pace is quickening (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 1.0% lower than a year earlier.
- Even versus the prior quarter (Q4 2025), revenue was 1.0% lower.
- ROE is 9.8% (controlling-interest basis). It is above the sector average.
- Operating margin is 8.7%.
Ownership & governance As of 2025-12-31
Largest shareholder Hyundai Motor 4.86% (corporate)
Controlling bloc incl. related parties 8.07%
With the controlling bloc holding 8%, ownership is dispersed, leaving room for control-related or activist dynamics.
🔎 In-depth analysis
- KT's real earnings engine is telecommunications.
- Mobile (phone plans) for individuals and businesses, high-speed internet, dedicated corporate lines, and IPTV pay-TV form the large pillars of revenue.
- Subsidiaries broaden the business from there: BC Card, which operates a credit-card payment network (finance); KT Cloud, which handles data centers (IDC) and AI cloud; KT Studio Genie, which produces dramas and content (media); the satellite broadcaster KT SkyLife; and a real estate business that draws on the company's property holdings, all of which add to consolidated results.
- In other words, on the foundation of the steady monthly cash flow of telecom fees, KT builds out growth businesses in enterprise (B2B) AI, cloud, and data centers.
- Annual revenue is around ₩28 trillion, within which the core telecom business is the center of earnings while BC Card, cloud, and others handle diversification.
- The recent closing price is ₩58,000 and the market cap is ₩14.6 trillion.
- The price sits above its 20-day line (₩54,010) and above its 60-day line (₩57,032).
- Being above both the short- and medium-term moving averages, the trend is relatively healthy.
- The RSI (a supplementary gauge that compares upward and downward force over the past 14 days on a 0-100 scale) is 63.3, a neutral level.
- The one-month change is +3.8%, the three-month change is -1.9%, and the position versus the 52-week high is -15.8%.
- Relative strength against the KOSPI is 35 (1-99, computed from returns against the index over the past year with more weight on recent periods; higher means stronger than the market).
- That places it in roughly the top 65% of all stocks by strength.
- Over the past three months it lagged the index by 23.4%.
- When reading the chart, it helps to look at trading volume and disclosure dates together.
- The valuation (whether the price is cheap or expensive relative to earnings and assets) is on the low side.
- The P/E ratio (how many times one year's earnings the price represents) is 8.44x, and the P/B (how many times book net assets the price represents) is 0.83x, so it trades below even its net assets.
- Profitability is sound, with an ROE (how much is earned in a year on equity) of 9.8% and an operating margin of 8.7%.
- On the balance sheet, the debt ratio (debt relative to equity) shows as 133%, but when a financial subsidiary like BC Card is consolidated, card receivables and borrowings are counted as debt and can make the figure look large, so a simple comparison with ordinary manufacturers is difficult; the interest coverage ratio of 3.2x means covering interest is not a strain.
- That said, the P/E of 7.7x here is based on 2025 net profit of ₩1.73 trillion, and that 2025 figure mixes one-off items such as real estate sales with a recovery off the 2024 trough (restructuring costs), so applying it directly to the future has limits.
- The dividend yield of 4.5% is relatively high, making this a stock better approached through cash flow and dividends than through earnings.
- Over five years revenue rose gradually from ₩24.9 trillion (2021) to ₩28.2 trillion (2025), about 3.2% a year on average, and in 2025 it grew 6.9% over the prior year, a faster pace.
- Earnings swung widely.
- The 2024 operating profit of ₩0.81 trillion and net profit of ₩0.47 trillion were a trough depressed by one-off losses such as large-scale workforce restructuring costs, and in 2025 the company came off that base with operating profit of ₩2.47 trillion (+205%) and net profit of ₩1.73 trillion (+268%), a sharp rebound.
- This is less 'growth' than a mix of normalization and one-off gains.
- The first quarter of 2026 stepped back, with revenue of ₩6.78 trillion (-1.0%), operating profit of ₩0.483 trillion (-29.9%), and net profit of ₩0.388 trillion (-31.5%), and the causes are clear: the difficult base against a one-off real estate sale gain of about ₩170 billion booked in the year-earlier first quarter, plus subscriber-compensation and defensive-marketing costs following the late-2025 hacking incident and subscriber churn from waived cancellation penalties.
- The company has officially stated, however, that by managing operating expenses (particularly selling costs) from the second quarter onward it will reach a standalone adjusted operating profit of around ₩1.5 trillion this year (about 15% growth year on year).
- Annual net profit will come in below 2025 as that year's one-off gains drop out, but with cost control in the second half the trajectory should stay firm, and on this normalized (forward) earnings basis the current price sits in a low band of around a 9x P/E.
- The recent narrative from disclosures and IR can be summed up as 'strengthened shareholder returns' and 'earnings normalization.' In a late-March corporate value enhancement plan, the company reaffirmed a 2028 consolidated ROE target of 9-10% and named share buybacks and cancellations as tools for capital allocation; in May its preliminary results revealed a weak first quarter (hacking fallout and a difficult base) while also confirming that operating profit more than doubled versus the immediately preceding fourth quarter.
- On the same day the company formalized a three-year medium-term shareholder-return policy for 2026-2028, pairing cash dividends with share buybacks and cancellations funded by 50% of standalone adjusted net profit, raised the minimum annual dividend per share (DPS) to ₩2,400 (with a first-quarter dividend set at ₩600), and on its earnings call stated a standalone adjusted operating profit target of ₩1.5 trillion for this year.
- The points to watch are a cheap valuation, a high dividend, and clear shareholder returns.
- Among the three domestic carriers (KT, SK Telecom, LG Uplus), KT has the highest ROE (9.8%) yet the lowest P/E, and it trades below net assets at a P/B of 0.76x.
- The company's commitment to returning 50% of standalone adjusted net profit and a minimum DPS of ₩2,400 for three years, together with a disclosed 2028 ROE target of 9-10%, raises the predictability of dividends and returns.
- The cautions are equally clear.
- Because 2025 net profit included one-off gains, this year's earnings are likely to come in lower, and the aftermath of the hacking incident (subscriber churn and compensation costs) is weighing on first-half profitability.
- Top-line growth in the core telecom business is slow at around 3% a year, so an earnings rebound depends on second-half cost control and growth in B2B, data centers, and cloud.
- In short, if second-half costs are managed toward the company's official ₩1.5 trillion target, the low valuation and high dividend come to the fore; conversely, if the hacking aftermath drags on or marketing competition intensifies, the earnings recovery could be delayed.
🔎 Valuation vs peers Undervalued
Compared directly against the three domestic mobile carriers (mobile, fixed-line, B2B), a peer group that shares the core-telecom-plus-media/finance-subsidiary structure and regulatory environment; P/E, P/B, and ROE are on-site values computed at the current price (tools/peers.py).
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| KT | 8.44x | 0.83x | 9.80% |
| SK Telecom | 44.18x | 1.40x | 3.18% |
| LG Uplus | 12.31x | 0.73x | 5.91% |
(a) Position versus the peer group: among the three carriers, KT trades the lowest relative to earnings and assets while posting the highest profitability (ROE). (b) Premium/discount: at a P/B of 0.76x it trades below net assets, which can be seen as reflecting both the inflated-looking debt ratio from consolidating a financial subsidiary and the low top-line growth of the telecom business. (c) Limits of trailing and the forward basis: the 7.7x P/E on 2025 net profit of ₩1.73 trillion is hard to read at face value because it mixes in one-off gains such as real estate sales, but on normalized earnings stripped of those items (2026 consolidated net profit in the ₩1.4 trillion range) the P/E is around 9x, still a low band. The company's official target (standalone adjusted operating profit of ₩1.5 trillion, +15%) also supports the earnings recovery. Relative to peers and on a forward basis, therefore, the undervalued position holds.
Price history Close · MA20 · MA60
The latest close is ₩58,000 and the market capitalization is ₩14.6 trillion. The price sits above its 20-day moving average (₩54,010) and above its 60-day moving average (₩57,032). It holds above both its short- and medium-term moving averages, so the trend looks healthy. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 63.3, a neutral level. The one-month change is +3.8%, the three-month change is -1.9%, and the position relative to the 52-week high is -15.8%. Relative strength versus the KOSPI is 35 (on a 1-99 scale, converted from returns against the index over the past year with more weight on recent performance; higher means stronger than the market). It is stronger than roughly 35% of all stocks. Over the past three months it lagged the index by 23.4%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
Relative performance stock vs index · start = 100
Excess return vs index · 3M -23.43% / 6M -31.83% / 12M -56.13%
Key metrics vs sector median
Valuation
The P/E of 8.44x is below the sector median (12.21x). The P/B is 0.83x.
Enterprise value (EV)
EV = market cap + net debt. It reflects cash and debt, so it captures the real cost of the whole business that market cap alone misses; lower multiples are cheaper relative to earnings or sales.
Profitability & financials
Return on equity (ROE) is 9.8%, in line with the sector average (9.0%). The operating margin is 8.7%. The debt ratio is 133.1%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $17.5B | $17.5B | $18.7B | +6.86% ↑ faster |
| Operating profit | $1.1B | $536.5M | $1.6B | +205.03% ↑ faster |
| Net profit | $669.3M | $311.7M | $1.1B | +268.08% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $16.5B | $17.0B | $17.5B | $17.5B | $18.7B |
| Operating profit | $1.1B | $1.1B | $1.1B | $536.5M | $1.6B |
| Net profit | $899.3M | $836.8M | $669.3M | $311.7M | $1.1B |
| Revenue CAGR | 4-yr avg 3.20% | ||||
Revenue rose 6.9% year over year (2023 ₩26.4 trillion → 2024 ₩26.4 trillion → 2025 ₩28.2 trillion), and the three-year trend is 'rising'. The pace of growth also quickened from the prior year. Operating profit rose 205.0% year over year. Profit is growing at an accelerating pace. Over the 5 years on record, revenue compound annual growth (CAGR) is 3.2%. The two-year revenue CAGR is 3.5%. In the most recent quarter (Q1 2026), revenue was 1.0% lower than the same period a year earlier. Because quarterly results are relatively even in this industry, revenue also came in 1.0% lower than the prior quarter (Q4 2025), so the recent trend looks soft.
Latest quarterly results Q1 2026 · vs year-ago + prior quarter
Technical indicators
What stands out
- The dividend yield, at 4.1%, is on the high side.
Points to watch
- The figures shown are based on the last annual report as of the writing date, so it is best to review the latest quarterly results and filings alongside them.
Recent news & events searched · sourced
- 2026-03-31FilingCorporate value enhancement plan (voluntary disclosure) — maintains a 2028 consolidated ROE target of 9-10%, and presents the shift to an AICT structure, rationalization of low-margin businesses, and share buybacks/cancellations as capital-allocation tools.The company sets out its medium-term direction for profitability and shareholder returns in an official document. That said, top-line targets for revenue and operating profit are not given as figures. Source
- 2026-05-12EarningsQ1 2026 preliminary results (fair disclosure) — consolidated revenue of ₩6.7784 trillion (-1.0% year on year) and operating profit of ₩482.7 billion (-29.9%). The difficult base against a one-off real estate sale gain in the year-earlier first quarter, plus compensation and defensive-marketing costs after the hacking incident, pressured profitability. Operating profit was +112% versus the immediately preceding fourth quarter.Confirms a short-term decline in earnings. Much of it, however, stems from the base effect and one-off costs, and the key question is whether costs are controlled in the second half. Source
- 2026-05-12Dividend2026-2028 medium-term shareholder-return policy and Q1 dividend decision — 50% of standalone adjusted net profit will fund cash dividends and share buybacks/cancellations, with the minimum annual dividend per share (DPS) raised to ₩2,400. A first-quarter dividend of ₩600 per share was set.Improves the predictability of dividends and expands the scale of shareholder returns, supporting the durability of a dividend yield in the 4% range. Source
- 2026-05-12IRQ1 2026 earnings conference call — the company officially set a target of reaching a standalone adjusted operating profit of around ₩1.5 trillion this year (about 15% growth year on year), and noted a policy of managing operating expenses such as selling costs from the second quarter onward.Provides the company's official baseline for a medium-term earnings recovery and grounds for expecting second-half normalization. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Q1 2026 revenue (consolidated) | 6₩778.4 billion | ₩6.78 trillion | Confirmed | link |
| Q1 2026 operating profit (consolidated) | ₩482.7 billion | ₩482.7 billion | Confirmed | link |
| Minimum annual dividend per share (DPS) | ₩2,400 | ₩2,400 | Confirmed | link |
| 2026 full-year earnings (forward) estimate | net profit approx. ₩1.42 trillion(self-estimate) | — | Unverified | link |
Recent filings
- 2026-05-29OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-29Corporate governance report
- 2026-05-29Large-business-group status disclosure (amended)
- 2026-05-28Large-business-group status disclosure
- 2026-05-28Large-business-group status disclosure
- 2026-05-15PeriodicQuarterly report
- 2026-05-15OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-15OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-15OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-13OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-13OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-13OwnershipOfficers'/major-shareholders' holdings report
📖 Plain-language glossary — expand if you are new to this
- P/E
- How many times a year's net profit the price is worth (lower is cheaper relative to earnings). The P/E here is on trailing (last full-year) results; for companies whose earnings swing fast (memory chips and other cyclicals/high-growth), a forward P/E on this year's expected earnings is more accurate.
- P/B
- Price relative to net assets (equity). Around 1x means it trades near book value; below 1x means below book.
- P/S
- Price relative to a year's revenue — useful for growth companies with thin earnings.
- Net debt / EV
- Net debt = interest-bearing debt − cash. Negative means more cash than debt (net cash). EV (enterprise value) = market cap + net debt, closer to what it would cost to buy the whole business.
- EV/EBIT · EV/EBITDA · EV/Sales
- Enterprise value against operating profit (EBIT), EBITDA, or revenue. Unlike P/E these reflect debt and cash; lower is cheaper relative to earnings power or sales.
- FCF / FCF yield
- Free cash flow = operating cash − capex, the cash actually left over. FCF yield = FCF ÷ market cap; higher means more cash generated per unit of market value.
- Intrinsic value (DCF)
- Future free cash flow (or, for some capex-heavy but profitable names, forecast earnings) discounted to today to estimate per-share value. Because it shifts a lot with the discount-rate and growth assumptions, it is shown as a bear/base/bull range, and the basis and assumptions are disclosed in one line beneath it.
- ROE
- How much profit the company earns in a year on its equity (%). Higher means better returns on capital.
- EPS / BPS
- Earnings per share / net assets (book value) per share.
- Operating / net margin
- Profit left from the core business / final profit after tax and interest, per unit of revenue.
- Debt ratio
- Debt relative to equity (%). Higher means more reliance on borrowing (norms vary by sector).
- Current ratio
- Assets convertible to cash within a year against debt due within a year. Above 100% leaves some short-term headroom.
- Interest coverage
- How many times operating profit covers the interest owed. Below 1x means operating profit alone struggles to cover interest.
- Dividend yield / payout ratio
- The year's dividend as a % of today's price / the share of earnings paid out as dividends.
- Revenue CAGR
- Multi-year growth expressed as a single yearly average (compound annual growth rate).
- RSI (short-term signal)
- Whether recent price action is overheated or beaten down. Above 70 is overbought, below 30 oversold.
- MA20 / MA60 (moving averages)
- The 20- and 60-day average price. Price above them signals a firmer short-term trend.
- vs 52-week high
- How far below the past year's peak the price sits now (%).
All figures are for reference only; how they read varies by sector and over time.
Sources: Korea FSC market-price API (data.go.kr), OpenDART, KRX/KIND — public data only.
Bong Stocks presents public-data-based information for reference only. It is not investment advice and contains no target prices, ratings, or buy/sell recommendations. Verify independently before making any decision.