Financial Data and Key Metrics Changes - Operating revenue increased by 7.1% year-over-year, reaching KRW 7.1267 trillion, driven by sustained growth from core businesses including telecom, real estate, cloud, and data center [27] - Operating profit rose by 16% year-over-year, amounting to KRW 538.2 billion [27] - Net income increased by 16.2% year-over-year, recording KRW 445.3 billion, supported by the rise in operating profit [28] - EBITDA grew by 5.2% year-over-year, reaching KRW 1,503.9 billion [28] - Operating expenses rose by 6.4% year-over-year to KRW 6 trillion 588.6 billion, attributed to increased cost of goods sold, cost of services, and selling expenses [32] Business Line Data and Key Metrics Changes - Wireless revenue grew by 4% year-over-year, reaching KRW 1,809.6 billion, driven by subscriber base expansion around 5G, with 5G penetration at 80.7% [35][36] - Broadband internet revenue increased by 2.3% year-over-year to KRW 636.7 billion, supported by GiGA Internet subscriber growth and value-added services [38] - Media business revenue grew by 3.1% year-over-year, backed by higher IPTV subscriber net additions and premium plan sales [40] - Home telephony revenue fell by 6.6% year-over-year to KRW 160.9 billion [42] - B2B service revenue reported a 0.7% year-over-year growth, driven by enterprise messaging and corporate broadband despite low-margin business streamlining [44] - AI and IT business revenue decreased by 5.7% year-over-year due to structural enhancements, despite ongoing monetization efforts [46] - KT Cloud revenue surged by 20.3% year-over-year, driven by increased data center usage and AI cloud demand [49] - KT Estate revenue rose by 23.9% year-over-year to KRW 186.9 billion, supported by strong hotel business performance and new development projects [50] Market Data and Key Metrics Changes - The net to equity ratio as of September 2025 was 123.3%, while the net debt ratio increased by 4.2 percentage points year-over-year to 34.5% [33] Company Strategy and Development Direction - KT is focusing on transforming into an AICT company, collaborating with global tech firms to launch specific services and establishing the KT Innovation Hub [14][16] - The corporate value enhancement plan is ongoing, with efforts to streamline assets and enhance profitability through rationalizing low-margin businesses and liquidating non-core assets [21] - A share buyback of KRW 250 billion was completed on August 13 as part of the value enhancement plan [23] Management's Comments on Operating Environment and Future Outlook - Management expressed a conservative outlook for Q4 due to seasonality and uncertainties related to customer compensation measures following the unauthorized micropayment incident [62] - Despite challenges, management is optimistic about achieving year-over-year growth for the full year 2025, supported by solid performance in core businesses and one-off gains [64] - The company is committed to investing over KRW 1 trillion in information security over the next five years to enhance customer protection and prevent future incidents [79] Other Important Information - The process for CEO nomination began on November 4, with a committee of independent directors responsible for selecting candidates [9] - The third quarter dividend was set at KRW 601 per share, maintaining a 20% higher payout year-over-year [19] Q&A Session Summary Question: Outlook for Q4 and dividend payment - Management acknowledged the usual seasonality impacts in Q4 and uncertainties from customer compensation measures, taking a conservative stance on forecasts while striving to minimize impacts [62][65] - Regarding dividends, management indicated that the board will consider annual financial performance and shareholder expectations before making decisions [65][66] Question: Financial impact of the hacking incident and prevention measures - Management confirmed that compensation plans are in place for affected customers, with costs related to USIM replacement expected to be recognized in Q4 [75][77] - A significant investment in information security exceeding KRW 1 trillion over five years was announced, with annual investments of KRW 120 billion-130 billion expected [79] Question: CEO appointment process and impact on value-up program - The CEO appointment process involves a director candidate recommendation committee and will conclude with a candidate presented to the board for final confirmation [86][90] - Management assured that the value-up plan will remain consistent regardless of the new CEO, as it is a commitment to the market [92]