Conference call. Now we'll begin the conference call of 2020 fourth quarter earnings results by KT. We'd like to have welcoming remarks from Mr. Seung-Hoon Chi, KT IRO, and then Mr. Kyung-Keun Yoon, CFO, will present earnings results and then entertain your questions. This conference will start with a presentation, followed by a Q&A session. If you have a question, please press star one, that is star and one, on your phone during the Q&A. Now, we would like to turn the conference over to Mr. Seung-Hoon Chi, KT IRO. KT IRO, Chi Seung-Hoon. Good afternoon. I'm Seung-Hoon Chi, KT's IRO. This earnings release call is currently being webcasted via our website. You can follow the slides as you listen in on the call. Let us now begin KT's Q4 2020 earnings presentation. Before we begin, please note that today's presentation includes financial estimates and operating results under the KIFRS standards, and have not yet been reviewed by an outside auditor. As we cannot ensure accuracy and completeness of financial and business data, except for historical performances, please be reminded that these figures are subject to change. Now, I invite our CFO, Kim Young-jin, for his welcoming remarks on 2020 earnings. Good afternoon. I'm Kim Young-jin, KT CFO. I've been newly appointed as the CFO of the company. I think there was a minor mistake by the operator. I would just like to make that correction before I begin. Now, let's begin with KT's 2020 key business highlights. First, consolidated revenue was KRW 23,916.7 billion. Service revenue was KRW 20,846.1 billion. Operating profit recorded KRW 1,184.1 billion. On handset sale decline on the back of COVID-19 pandemic, total revenue declined, but improved profitability of KT's key cash cow businesses and expansion of our growth businesses, operating profit posted a 2.1% growth year-over-year. On a standalone basis, there was growth across our B2B platform, wireless, and media, which all supported service revenue to rise 1% on year, breaking the KRW 15 trillion threshold in nine years. Last year, with the launch of B2B brand, KT Enterprise, we bolstered our B2B platform business while AI and DX business posted a 11.8% growth on year, which is the highest uptrend out of all of KT's business portfolio. Existing core businesses of wireless and media are also sustaining their growth trajectory. There's also been many changes for the group as a whole. Since the rights offering for K Bank last July, operations normalized, leading to a rise in total deposits from KRW 1.8 trillion in June 2020 to KRW 4.5 trillion as of January 21st, which is more than 2.5 times increase. Number of customers surged from 1.3 million to 2,470,000. To further expand on the company's media platform Edge, KT SkyLife is in the process of acquiring HCN, and we've made the decision to merge KTH, a T-commerce company, and kt mhows, a B2B mobile commerce company, to further bring growth to the media commerce business. Based on the confidence we have on earnings improvement and corporate value enhancements, we have also decided on a stronger shareholder return. On top of the decision for KRW 300 billion share buyback announced last November, in line with KT's profit improvements for 2020, we decided to pay out KRW 1,350 per share, which is up KRW 250 year-over-year. Our business direction for 2021. Last year, KT declared that we will make the transformation from a telco to a digico and be a digital platform company with a telecom foundation. While in 2020 we brought improvements to our fundamentals in order to change into a digico, in 2021, we plan to bring tangible business results as a digico and bring growth befitting a digital platform company. In the post COVID-19 world, untact or contact-free culture has become a daily norm, calling upon consumers and companies to make the necessary digital conversion. Government is also adding speed to digital transformation of the public sector through digital new deal policies. We believe this backdrop brings big opportunities to KT. As you know, KT is already providing best domestic fixed wireless network and telecom services, and have been sharpening its competitiveness in AI, big data, and cloud, which are the essential elements of digital transformation. Now, starting with IPTV set-top boxes, we've been successful in adopting and expanding AI services to a B2B model, including AI hotel, real estate, and AI contact centers. Currently, KT has the biggest AI subscriber base of 2,720,000 and provides AI services to around 7,200 hotel rooms and 500,000 apartments nationwide. big data is another business that KT takes pride. KT Group has great amount of data on fixed, wireless communications, video, financial, commercial zones, et cetera, and have been building big data capabilities in many areas, including healthcare and climate. With the recent revision of the Data 3 Act, things have become more favorable when it comes to data usage. There is now greater value and opportunities for data utilization. As Korea's domestic number one native cloud provider, we offer not only the hybrid cloud services, but on top of that, recently launched a DX platform, through which we are providing Korea's top-level cloud services. Let me brief you on the key directions for the company this year. As a digital transformation partner of Korean industries, KT will push for the growth of B2B business in earnest. In B2B communications, where KT is market share number one, we will combine our AI, big data, and cloud to develop a new DX business model to further expand the market. To be more specific, we can add AI chatbots, customer support, and big data failure predictions to the current product offerings, including call, messaging, lease line services. Based on the segmentation by sector size and industry, such as public, financial, and large corporates, we plan to design and provide services for each customer segment. KT alone cannot do this on its own. To further enhance our competitiveness, we plan to actively pursue partnerships, M&As, and equity investments. We can work with partners to provide convergence services or can gain capabilities that we lack through M&As and equity investments. Second, in order to gain ground for platform business development, we plan to accelerate group portfolio restructuring mainly around growth businesses. As mentioned on top of B2B, we have selected media, content, commerce, and financial businesses as our core growth areas and plan to support their growth with a strong focus. Recent announcement for the launch of Studio Genie, a specialized content provider, is also in line with such objectives. Securing original IPs and content is becoming ever more important at this juncture, and KT wishes to make investments into content business by leveraging more than 12 million subscribers for the media platform. There were also quite some changes in the makeup of the management with a view to strengthen our competitiveness. For all our financial businesses, outside financial experts have been appointed as CEOs, and we also hired global talent for AI and robotics business. By allowing group subsidiary CEOs to hold multiple positions, we plan to maximize synergies across the group. Lastly, we will bolster profitability of the current cash cow business. For fixed and wireless communications and internet business, we will expand on high quality subscribers of 5G and giga internet so as to grow our top-line revenue and to strengthen profitability through efficient spending. Guided by these directions, we commit to growth and for 2021, on a standalone basis, we will bring more than 4% growth for service revenue with consolidated revenue of more than KRW 25 trillion. I will present on 2020 full year performances. Total revenue was down 1.7% on year to KRW 23,916.7 billion on decline in handset revenue. Operating profit was driven by increase in service revenue as well as cost efficiency efforts, leading to a 2.1% growth on year, reporting KRW 1,184.1 billion. Net profit was up 5.6% on year to KRW 703.4 billion. EBITDA was up 0.6% on year, reporting KRW 4,818.4 billion. On the next page is operating expense. 영업비용은 지속적인 비용 효율화를 통해 전년 동기 대비 1.9% 감소한 22조 7,326억원입니다. 다음 페이지에서 재무 상태에 대해 설명드리도록 하겠습니다. Operating expense was down 1.9% year-over-year to KRW 22,732.6 billion and sustained cost efficiency measures. Next is on our financial position. 2020년 연도 말 부채 비율은 116.5%로 전년 대비 11.0%포인트 감소했습니다. 순부채 비율은 전년 대비 2.8%포인트 감소한 30.1%입니다. 다음은 투자 지출에 대해 말씀드리겠습니다. 2020 year-end debt to equity ratio was 116.5%, down 11 percentage points year-on-year. Net debt ratio was down 2.8 percentage point to 30.1%. Next is on CapEx. 2020년 집행한 투자 지출은 총 2조 8,720억원입니다. 지금부터는 사업별 실적에 대해 설명드리겠습니다. Total CapEx spend for 2020 was KRW 2,872 billion. Next is on the performances from each of our respective businesses. 무선 수익은 전년 대비 1.3% 증가한 6조 9,338억원입니다. 무선 수익은 5G 가입자가 확대되면서 전년 대비 1.6% 증가한 6조 5,427억원입니다. Wireless revenue was up 1.3% year-over-year to KRW 6,933.8 billion. Driven by 5G subscriber growth, wireless revenue was up 1.6% year-over-year reporting KRW 6,542.7 billion. 2020년 말 무선 전체 가입자는 2,231만 명을 기록하였습니다. 5G 가입자는 362만 명으로 휴대폰 가입자 대비 25%에 해당합니다. 다음은 유선과 IPTV 사업입니다. As of end of 2020, total wireless subscriber was 22,310,000. There were 3,620,000 5G subscribers, which is 25% of total handset subscriber base. Next is fixed line and IPTV business. 유선전화 수익은 가입자 감소로 전년 동기 대비 7.3% 줄어든 1조 4,655억원입니다. 초고속 인터넷 수익은 접속료 수익 하락에도 불구하고 기가인터넷 가입자 증가와 기가와이파이 판매 활성화로 전년과 비슷한 2조 12억원을 기록하였습니다. On declines in subscribers, PSTN revenue was down 7.3% on year to KRW 1,465.5 billion. Despite lower interconnect revenue on growth in giga internet subscribers and sales of giga wifi really taking off, broadband internet revenue came in flat year on year reporting KRW 2,001.2 billion. IPTV 수익은 우량 가입자 증가와 미디어 플랫폼 기반 매출 확대로 전년 대비 7.7% 성장한 1조 7,232억원을 달성하였습니다. 다음은 B2B 사업입니다. IPTV revenue reported KRW 1,723.2 billion, up 7.7% on year on the back of increase in high-end subscribers and revenues based on the media platform. Next is B2B business. B2B 수익은 전년 대비 2.0% 증가한 2조 7,740억원입니다. 특히 산업 전반으로 디지털 전환이 가속함에 따라 AIDX 사업은 전년 대비 11.8% 성장하였습니다. B2B revenue was up 2% on year, reporting KRW 2,774 billion. With faster take off across these, AI and business posted 11.8% year-over-year growth. 기업 IT 솔루션 사업은 코로나로 인한 글로벌 SI 사업 감소, 저수익 사업에 대한 사업 조정으로 전년 대비 소폭 감소하였습니다. 다음은 주요 그룹사 실적입니다. B2B IT and solutions business showed slight contraction on the back of subdued global SI business following COVID-19 pandemic and restructuring of low margin businesses. Next is on subsidiary performances. BC카드 수익은 코로나로 인한 외국인 여행객이 감소하고 소비가 위축되면서 전년 대비 4.2% 감소한 3조 3,864억원을 기록하였습니다. 에스테이트 수익은 분양 매출의 하락과 코로나로 인한 여행객 감소에 따른 호텔 임대 매출의 감소, 그리고 지난해 8월 건물 관리 사업을 KT텔레캅으로 이관함에 따라 전년 대비 24.9% 감소한 3,644억원을 기록하였습니다. With declines in inbound foreign travelers and contraction of spending on the back of COVID-19 pandemic, BC Card revenue was down 4.2% on year, reporting KRW 3,386.4 billion. For the Estate revenue, due to declines in hotel rental revenue on the back of decrease in travelers from COVID-19 pandemic and declines of revenue from real estate sales, and also as we transferred building management business to KT Telecop in August, revenue fell 24.9% on year to KRW 364.4 billion. 스카이라이프 수익은 통신 서비스 매출이 확대되며 전년 대비 0.6% 증가한 6,987억원입니다. 콘텐츠 자회사 수익은 KTH, KT엠하우스, 지니뮤직, 스토리위즈 등 주요 회사들 모두 플랫폼 기반 매출이 증가하면서 전년 대비 9.6% 성장한 7,720억원을 기록하였습니다. On increases in telecom service revenue, SkyLife revenue was up 0.6% on year to KRW 698.7 billion. For the content subsidiary revenue, as platform-based revenue increased for all of the main companies like KTH, kt mhows, Genie Music, and StoryWiz, revenue was up 9.6% on year to KRW 772 billion. 다만 이익 측면에서는 코로나 영향 등으로 규모가 큰 BC카드와 에스테이트 영업이익이 크게 감소하면서 전체적으로 그룹사들의 이익 기여도는 전년 대비 감소하였습니다. However, in terms of profit, due to the COVID pandemic impact, there was sizable decline in the operating profits of BC Card and KT Estate who are big companies, driving down overall profit contributions on a year-over-year basis. 지금까지 KT 2020년 연간 실적을 말씀드렸습니다. KT는 디지털 플랫폼 기업으로서 대한민국 디지털 혁신에 앞장서고 소비자들에게는 더욱 편리하고 재미있는 서비스를 제공하고자 합니다. KT 그룹의 역량을 결집하여 새로운 성장 사업들을 과감하게 진행하고, 이를 기반으로 기업 가치 향상에 더욱 노력하겠습니다. 투자자와 애널리스트분들의 더욱 많은 관심과 성원 부탁드리겠습니다. 감사합니다. This has been KT's 2020 annual performance briefing. As a digital platform company, KT will lead Korea's digital transformation and provide fun and convenient services to our customers. By bringing together KT Group's capabilities, we will be bold with growth businesses, and based on that, we'll endeavor to further enhance our corporate value. I ask our investors and analysts for your continued interest and support. Thank you very much. 기타 세부적인 내용은 미리 배포해 드린 실적 발표 자료를 참고해 주시기 바라며, 지금부터 여러분께서 궁금해하시는 질문에 대해 답변을 드리는 시간을 갖도록 하겠습니다. 많은 분들께 질문의 기회를 골고루 드리기 위해서 질문은 한 분당 두 개 이내로 제한하도록 하겠습니다. For more details, please refer to the earnings presentation that we previously circulated, and now we will be very happy to take any of the questions that you may have. To allow for as many people to ask questions, we'd like to ask that you please limit your questions to two per person. [Foreign language] [Foreign language] [Foreign language] [Foreign language] Q&A session will begin. Please press star one, star and one if you have any questions. Please press star two, star and two if you want to cancel your question. In order to allow as many Q&A chances as possible within the restricted time, we would appreciate only two questions per participant. [Foreign language] [Foreign language] The first question will be provided by Jun Sop Kim from KB Securities, and the next question will be provided by Hoeje Kim from Daishin Securities. Mr. Jun Sop Kim, please go ahead with your question. 네, 질문 기회 주셔서 감사합니다. KB증권 김준섭입니다. CapEx와 콘텐츠 투자 전략 관련 두 가지 질문을 하고 싶습니다. 먼저 CapEx인데요. 금년도 CapEx 지출 가이드라인 및 중점 기술 사항에 대해 여쭤보고 싶습니다. 기지국 커버리지에 중점을 두실지, 아니면 인빌딩 장비나 클라우드 장비 중 어느 영역 투자에 초점을 두실는지요? 예년과 비교해 주시면 이해하기 좀 쉬울 것 같습니다. 다음은 콘텐츠 투자 전략입니다. 최근 KT 스튜디오지니 설립건도 있고, 국내 다양한 OTT 서비스가 출시하는 이런 콘텐츠 환경이 급변하고 있는 것 같은데요. 저희가 보고 있는 경쟁 환경 및 경쟁 전략에 대해서 설명해 주시면 좋겠습니다. 감사합니다. Thank you. I would like to ask two questions. I'm Kim Jun Sop from KB Securities. My questions relate to, first, CapEx and second, your strategies on content investment. For this year, could you provide some color as to what your CapEx guidance is? Would you be focusing your capital expenditure more on expanding the coverage based on the sites and the base stations, or would you focus on specific areas such as in-building coverage or cloud equipment? I think it would be helpful if you could make comparisons with your past practices. Second question relates to the content industry. Recently, we've seen quite a bit of change around the content landscape. Could you provide some color as to what your take is on the current content landscape? I know that you recently set up KT Studio Genie, and there are multiple number of OTTs that are going to be launched in Korea. It will be helpful if you could provide us with your understanding and the way you see this content market. 네, 김준섭 위원님, 질문 감사드립니다. Yes. Mr. Kim Jun Sop, thank you very much for your question. 먼저 올해 CapEx 계획 관련해서 질문에 대해서 답변드리도록 하겠습니다. First, responding to your question on CapEx. 올해 CapEx는 전체적인 규모는 전년과 유사한 수준으로 예상하고 있습니다. Now, in terms of the total size of the CapEx, we're looking at about a flat year-on-year size. 다만 CapEx 내용의 구성에 있어서 상대적으로 AIDX라든지, 이런 미디어라든지 성장 분야에 대한 재원에 대한 배분 부분들을 작년에 비해서 좀 더 확대하는 것을 계획하고 있습니다. If you look at the breakdown of what comprises that CapEx, we are planning to make more resource allocations on growth areas such as AIDX and media. 무선 투자 관련해서 기지국과 In-Building 관련해서 질문을 주셨는데, 그거 관련해서 2020년 말 저희 KT는 5G 관련해서 85개 동 지역 커버리지를 대부분 구축 완료하였습니다. With regards to wireless investment, you've asked about the base station site and In-Building coverage. As of end of 2020, KT was able to complete the coverage, this is 5G network based, across the 85 common locations. 2021년은 85개 동 지역 5G 커버리지를 100% 확보하고, 전국 지하철 커버리지도 확보를 완료할 계획입니다. 그리고 In-Building 관련해서는 다중 이용 시설을 우선하여 커버리지를 지속 확대할 계획입니다. For 2021, basically we will be expanding the 85 regional, the 5G coverages nationwide, and also for the nationwide, we will complete the coverage for the subways as well. When it comes to in-building coverage, we will focus on locations where multiple people are using the network. That will be our focus in improving and increasing our coverage. 네, 두 번째 질문에 대해서 답변드리도록 하겠습니다. Moving on to your second question. 두 번째 질문은 콘텐츠에 대해서 투자 전략과 KT가 바라보는 경쟁 상황과 전략에 대한 질문을 주셨던 거로 이해하겠습니다. I understand your second question relates to what our strategy is for content investment, as well as how KT sees the competitive landscape. 국내 미디어 콘텐츠 시장은 국내외 OTT 확산과 K-콘텐츠에 대한 글로벌 수요 확대로 웹툰, 웹소설 등 IP와 이를 통한 영상 콘텐츠 제작, 유통을 중심으로 빠르게 성장하고 있는 것 같습니다. If you look at the domestic media content industry, with the expansion of the OTT services and gaining popularity of K-content, we are seeing a significant growth in terms of production of original IPs, including web novels and webtoons, and we are seeing a lot of video content being produced as well as facilitated distribution of such IP-based content. 이미 대형 미디어 사업자들은 자체 제작 능력이라든지 채널 기반 바탕으로 영향력을 크게 확대하고 있으며, 플랫폼 사업자들도 웹툰, 웹소설 IP를 바탕으로 영상 콘텐츠 제작 유통 분야로 빠르게 영향을 확장하고 있는 것 같습니다. Already, if you look at key media players in Korea, based off of their in-house capabilities and based off of their channel basis, they are building on their influence. Also, if you look at the platform providers underpinned by the original IPs that they own, they are very fast developing and utilizing the web novels and webtoon and really expanding the reach of such content. 이런 상황에서 KT의 경쟁 전략 및 역량에 관해서 말씀드리도록 하겠습니다. That's the backdrop. Now let me move on to what our competitive strategy is. KT는 아시다시피 IPTV와 위성, 케이블 기반의 한 1,200만 명 가입자를 보유한 국내 1위 미디어 플랫폼 사업자입니다. Now, as you know, KT is a number 1 media platform provider in Korea with about 12 billion subscriber base across IPTV, satellite, and cable TV. 동시에 미디어 콘텐츠 산업 전반의 Value Chain에 걸쳐서 역량을 보유하고 있습니다. 예를 들어, 저희가 웹소설, 웹툰 전문 기업인 StoryWiz를 설립해서 IP 역량도 보유하고 있습니다. On top of that, we actually have capabilities across the entire value chain of media content. For instance, by setting up StoryWiz, we actually own IPs when it comes to web novels and webtoons. 또한 MPP 채널인 skyTV 중심으로 Original Content 제작 및 라인업을 강화할 계획이고, OTT 서비스인 Seezn, 음악 스트리밍 플랫폼인 Genie Music도 보유하고 있습니다. Also through skyTV, which is an MPP provider, basically we will continue to strengthen the portfolio of original content and really strengthen the lineup of such content. We also own Seezn, our OTT service. We also distribute music titles through Genie Music as well. 무엇보다도 KT가 보유한 1,200만 가입자 기반으로 가입자의 좋아하는 프로그램 등 시청 형태의 분석을 통해서 타겟화된 프로그램을 제작할 수 있고, IP의 역량을 기반으로 바탕으로 제작 분야에도 적극적으로 진출할 수 있습니다. On top of that, underpinned by our 12 million subscriber base, we can analyze the programs that viewers like, and we can also study the viewing behavior of the audience. Based on that information, we can develop targeted programs. Underpinned by our capabilities in IP, intellectual property, we will be able to make further expansions. KT 그룹이 보유한 IP, 플랫폼, 채널, OTT 등 경쟁력을 바탕으로 Original Content 제작, 유통 연계 및 안정적인 수익 창출이 가능할 거로 전망하고 있습니다. 또한 국내외 제작사 및 기획사와 함께 협업하여 적극적으로 제휴를 통한 콘텐츠 제작에도 뛰어들 예정입니다. KT, with its capabilities in IP, platform, channel, and OTT, we will focus on producing and distributing original content, and we feel that that will be a good basis for earnings generation going forward. We also plan to cooperate and collaborate with production studios, both home and abroad, and through such cooperation, we will focus our efforts on producing such contents as well. 이러한 기획 및 제작에 필요한 자금은 KT 자체 펀딩뿐만 아니라 외부 자금 조달들도 계획하고 있으며, 저희 KT 캡티브 시장 규모 고려 시에 안정적으로 제작 유통 구조를 정착이 가능할 것으로 전망하고 있습니다. When it comes to planning and making these contents and productions, the resources that would be required could be funded with KT's own resources, but we're also planning to bring outside funding as well. In light of the size of the captive market that KT currently enjoys, we believe that we will be able to set a very steady structure for production and distribution of such content. 네, 다음 회원님 질문 부탁드리겠습니다. We will take the next question, please. [Foreign language] [Foreign language] The next question will be presented by Hoeje Kim from Daishin Securities, and the following question will be presented by Jae Min An from NH Investment & Securities. Mr. Hoeje Kim, please go ahead with your question. 네, 안녕하세요. 대신증권 김회재입니다. 무선 ARPU 상승이 잘 나오고 있는데 올해 전망 좀 부탁드리겠습니다. 특히 최근에 5G 저가 요금제가 출시되면서 ARPU 상승이 정체되지 않을까 우려되는데, 올해 마케팅 경쟁 상황과 연계해서 ARPU 전망 좀 부탁드리고요. 두 번째는 20년도 주당 배당금이 시장 예상을 상회할 수준이라고 저는 판단을 하고 있는데, 실적도 개선되고 있고 자사주 취득도 진행하고 있기 때문에 21년 주당 배당금도 절대 금액 기준으로 20년 대비 상회 가능할 것으로 저는 그렇게 보고 있습니다만, 21년 배당 전망 및 작년 5월에 제시하셨던 중기 배당 정책에 대해서 다시 한번 설명 부탁드리겠습니다. 감사합니다. I am 김회재 from Daishin Securities. It seems like your wireless ARPU trend is quite favorable. Could you share with us what your projection is for your wireless ARPU? With the launch of the lower-end 5G tariff plan, there are some concerns that this may actually curb the ARPU growth. In light of the marketing backdrop, could you share with us what your ARPU outlook is? Second, with respect to 2020 dividend per share, that actually, I believe that was higher than what market had expected. With your business performance improving for 2021, can we expect, on an absolute basis, bigger dividend payout compared to 2020? What is your outlook for your dividend payout for 2021? Also, could you make some clarifications or more elaborations on the interim dividend of May? 네, 김회재 연구원님 질문 감사드립니다. Yes, Mr. 김회재, thank you for that question. 먼저 올해 ARPU 상승 전망 관련해서는 저희는 한 3% 내외로 성장할 것으로 전망하고 있습니다. For ARPU outlook, on our side, we're looking at around 3% ARPU growth for this year. 5G 중저가 요금제로 인해서 ARPU 정체 우려에 대해서 질문해 주셨는데, 저희 고가 요금제 중심의 가입자에서 LTE 가입자들이 5G로, 고가 요금제로 많이 전환했습니다. 그래서 LTE의 저가 요금제 가입자들이 좀 더 원활하게 증가될 수 있도록 5G 중저가 요금제를 출시하였고, 이 요금제가 전체적으로 5G 가입자 확대와 ARPU 증가에도 긍정적일 거라고 예상하고 있습니다. You asked about the lower-end, mid to low-end 5G rate plan, and whether that would have a curbing impact on ARPU growth. As you know, we had introduced a high-end 5G rate plan, and that successfully converted the LTE users inflow into 5G. There are also a group of subscribers using the low-end LTE rate plan, and we wanted to attract them. Hence, we decided to launch the 5G mid to low-end rate plan. We believe that with the launch of this mid to low-end 5G rate plan, we will be able to further grow the subscriber as well as ARPU for 5G. 마케팅 경쟁 환경과 연계해서 아까 질문을 주셨는데, 저희가 2021년도 시장 안정화 기조는 계속 유지될 것으로 전망하고 있습니다. You also asked about that question in relation to the marketing competition. For 2021, we expect the stabilized environment for marketing competition will continue for the year. 2021년부터는 통신 3사가 win-win하는 co-opetition 경쟁을 더욱 강화해서 5G 공동 투자뿐만 아니라 V 컬러링 등 부가 서비스 관련 부분에서도 적극적으로 협력할 계획입니다. 2021, we are expecting all of the three telcos to engage in the so-called co-opetition, a win-win for all of the players. There will be joint investments on 5G, and also there will be quite active cooperations and collaborations on other VAS services, value-added services, such as V Coloring. 전체적으로 저희 KT는 보조금 경쟁을 지양하고 본원적인 경쟁력 강화에 집중할 계획입니다. All in all, KT will depart from any subsidy-based futile competition and focus more on the fundamental aspects. 다음, 배당에 관련해서 질문해 주셨습니다. Your next question related to dividends. 2021년도에 대한 배당 규모는 저희가 배당 정책을 발표한 게 중기 배당 정책이 조정 당기 순이익의 50%를 배당하겠다고 밝힌 바 있습니다. In terms of the size of the dividend payout for 2021, first of all, as you know, we've announced that for the interim dividend, we will be paying out 50% of the adjusted net profit. 2020년 5월 발표한 중기 재무 가이던스에 따라 2020년 영업이익 1조 원 달성을 목표로 2021년도에도 전년 대비 영업이익 개선을 위해 노력할 것입니다. In accordance with the midterm financial guidance, which we announced in May of 2020, based on the OP target of KRW 1 trillion of 2020 for 2021, we will endeavor to further enhance the operating profit on an year-over-year basis. 수익성이 개선되는 정도에 따라 배당액도 확대할 수 있도록 노력하겠습니다. In line with improvements and the profitability, we will do our best to make sure that we can further expand on dividend payout. 다음 의원님 질문 부탁드리겠습니다. We'll move on to the next question. [Foreign language]다음으로 질문해 주실 분은 NH투자증권의 안재민 님입니다. 그 다음으로 질문해 주실 분은 키움증권의 장민준 님입니다.[/Foreign language] The next question will be presented by Jae Min An from NH Investment & Securities. The following question will be presented by Min Jun Jang from Kiwoom Securities. Mr. Jae Min An, please go ahead with your question. 네, 안녕하세요. NH투자증권의 안재민입니다. 먼저 CFO님으로 IR팀 예전에 계시다가 오신 부분들에 대해서 다시 축하드리고요. 과거에 IR팀에 계셨던 부분들이 있어서 또 시장에서는 또 기대가 많은 것 같습니다. 다시 한번 축하드리고요. 저는 질문 두 가지 있습니다. 무선 가입자 관련해서 5G 올해 아까 보급률도 확대하겠다라고 이야기하셨는데, 5G 가입자 올해 전망하고요. 최근에 KT파워텔 매각이라든지 이런 구조조정 관련해서 변화를 보이시고 있는 것 같은데, 올해 그룹 관련해서 리스트럭처링이나 이런 부분들 설명해 주시면 감사하겠습니다. Hello, I am Jae Min An from NH Investment & Securities. Before asking the question, I would like to congratulate you on becoming the new CEO. I know you used to work at the IR department, I think that's why the market has quite a bit of expectations for your contributions going forward. Moving on to my question. It's on wireless subscriber. You've mentioned that you are looking to see a higher penetration of 5G. What is your forecast for 5G subscriber going forward? Second question, there was a recent decision to sell off one of your subsidiaries, KT Powertel. Could you share with us what the group's position is on the restructuring of these affiliates and companies? 네, 안재민 님. 축하 말씀과 기대에 대한 말씀 감사드립니다. Yes, Mr. An, thank you for that kind words, for the congratulations that you've given me and the expectations that you've shared. 첫 번째 질문 관련, 5G 가입자 전망 관련해서는 저희가 2021년은 5G가 좀 더 본격 대중화되면서 저희 KT 기준으로 handset 가입자 대비 한 45% 정도가 5G 가입자가 될 것으로 전망하고 있습니다. First, on the 5G subscriber forecast, in 2021, we expect 5G to become much more mainstream. According to the handset base for KT, we think that the portion is going to increase to 45%. KT파워텔 매각과 관련해서 추가적인 그룹사 리스트럭처링 관련해서 질문도 주셨습니다. You asked about the group restructuring, including the decision to sell KT Powertel. 저희가 작년부터 진행된 그룹사 리스트럭처링 관련해서 간단히 말씀드리도록 하겠습니다. Let me briefly share with you what our efforts were since last year when it comes to group restructuring. 작년 5월에 Corporate Day를 통해 B2B 플랫폼, 금융, 미디어 콘텐츠 등 성장 사업 중심으로 KT 그룹의 사업 포트폴리오를 재편하겠다고 선언한 바 있습니다. Now, as you know, last year in May, during our Corporate Day, we announced that we will be restructuring the group portfolio, focusing on group growth industries such as B2B, financial, and media content. 이에 따라 작년 7월에 미디어 플랫폼 사업 지위 확대를 위해서 스카이라이프의 현대 HCN 인수 절차를 진행하였습니다. Under that objective, in order to further bolster our media platform capabilities, last July, we embarked on the process to acquire HCN, KT SkyLife that is. 7월에 케이뱅크 증자를 통해서 금융 사업 본격 성장 기반도 마련하였고, 작년 11월에는 T커머스 기업인 KTH와 모바일 커머스 기업인 KT엠하우스 간의 합병을 통해서 디지털 커머스로 진화 준비 중입니다. Also in July, we successfully completed the rights offering by K Bank, really laying down the basis for further financial business growth. In November, we decided to merge the two entities, KTH of T-commerce and KT M House, a mobile platform-based company, so that we may take a step further towards becoming a digital content platform. 올해는 KT파워텔 매각, 콘텐츠 법인인 KT 스튜디오지니 설립 등을 발표하였습니다. This year we announced that we will sell KT Powertel, and that we will set up and establish KT Studio Genie. Excuse me. Such group restructuring was not just done on a top-down perspective. Group companies or subsidiaries themselves, starting last year, redefined the business that they were in, and they started to re-highlight the customer base that they had, really trying to make preparations for further strengthening of competitiveness. KT will focus on its core businesses of IT and telecommunications, and really realign and restructure its business portfolio centering around new growth businesses and growth areas such as in finance and in media content. In terms of the more specific restructuring plan, as the updates arise, we will promptly communicate with you. We will move on to the next question, please. The next question will be presented by Minjun Jang from Kiwoom Securities. The following question will be presented by Neale Anderson from HSBC. Mr. Minjun Jang, please go ahead with your question. Now, thank you. I also have two questions. First, your AI and DX revenue, part of your B2B business, is posting a double-digit growth. Do you expect such growth trend to continue into the future? If you could give us a guidance on your B2B growth, including AIDX, that would be helpful. Second, I know there was a question on dividend already, but I just want to confirm that your increase in DPS this year, of course, is going to be positively received by the market, but it seems like you still have quite a bit of investment that's going to be needed for 5G as well as content and other growth businesses like B2B. The company obviously then would have to think about whether it is not better to actually retain these resources. From the market perspective, can we expect same level of DPS or payout ratio for this year? Yes. Mr. Jang Min Jun, thank you for that question. I understand that you asked question about annual growth trend of AIDX and also any B2B growth guidance. AIDX business posted a growth of 11.8%. Not only cloud and IDC business growth, but we are really planning to enter full swing into AI, artificial intelligence-based AICC, contact centers. If you look at KT's cloud, we are the sole provider in Korea that can bring together and integrate the network, IDC, and cloud at the same time. As supported by our network business, basically when it comes to cloud IaaS, as well as public sector cloud and financial cloud, we have competitive edge. Based off of that, we can very effectively expand into PaaS and SaaS as well. For AICC, we plan to focus on targeting customers such as local governments, hospitals, and small to medium-sized merchants. 저희가 구체적인 수치는 제공하지는 않지만, 전년 11.8%보다 더 높은 성장률을 달성할 계획입니다. In terms of the guidance, the growth is going to be higher than the 11.8% that we've seen previous year. Please understand, I cannot disclose any specific figures. 두 번째 질문 관련해서, 5G 투자와 B2B 투자 등 투자에 대한 부분이 많은데 payout ratio에 대한 정책이 유지될 수 있을까에 대한 질문을 주셨습니다. Your second question relates to whether we will be able to maintain the current payout ratio in light of the fact that there will be quite a bit of resources that is required for 5G and B2B investment. 저희 CapEx 관련해서는 전년 수준으로 전체적인 CapEx는 유지한다는 계획은 말씀드렸고, 다만 CapEx의 포트폴리오를 성장 사업 위주로써 그 부분에 대한 배분을 좀 더 늘일 계획입니다. I have already said that basically our plan is to maintain our CapEx level at a flat rate compared to the previous year, but the adjustment will be made within the portfolio. We will increase allocation to growth businesses. Payout ratio 관련해서는 2022년까지는 저희가 조정 당기순이익 별도 기준입니다. 50%를 유지할 계획입니다. In terms of the payout ratio up until 2022, basically we will keep to the 50% of the adjusted net profit. This is on a standalone basis. 네, 다음 위원님 질문 부탁드리겠습니다. Next question, please. [Foreign language] The next question will be presented by Neale Anderson from HSBC. Please go ahead with your question. Thank you very much. Good afternoon. I have two questions, please. The first one relates to 5G, and specifically it's when KT plans to see commercial benefits, revenues from some of the newer features of 5G, such as edge computing, low latency or network slicing. The second is really a follow-up from the previous question, and it relates again to 5G. In which specific areas of the market are likely to adopt 5G services first? Would that be in the smart city domain or factory automation, etcetera? It would be very helpful to get your view on that. Thank you. 네, 안녕하십니까? 저는 두 가지 질문드리도록 하겠습니다. 우선 5G 관련하여서 KT가 생각하기에 소위 5G와 관련되어 있는 새로운 사양 쪽에서 상업적 수익은 언제부터 발생시킬 수 있다고 생각하시는지요? 즉, edge computing이나 low latency 또는 network slicing 관련되어서 상업적 수익 발생 기준 시점 어디라고 생각하시는지 설명 부탁드리고요. 앞서 나온 질문에 대한 팔로우업이기도 합니다만, 5G에 있어서 특별히 어떤 영역에서 5G 서비스가 먼저 채택될 거라고 생각하시는지요? 예를 들어서 스마트 시티 아니면 공장 자동화, 팩토리 자동화, 어떠한 영역에서 5G가 가장 먼저 채택, 활용될 수 있으리라 생각하시는지 회사의 시각을 듣고 싶습니다. 네, Neale Anderson 위원님, 질문 감사드립니다. Yes, Neale Anderson, thank you for that question. 최근 망중립성 가이드라인 개정으로 망중립성 예외를 받는 자율주행, Smart Factory 등 특수 서비스에 대한 B2B 사업 기회가 증가할 것으로 예상되고 있습니다. Recently there's been revision on the network neutrality related guidelines. On the back of that revision, we think that there's going to be more B2B business opportunities in the areas of autonomous driving and Smart Factory. 특수 서비스의 5G 트래픽 차등 정책 적용을 위해서는 기업 전용 5G 인프라와 네트워크 슬라이싱 기술의 활용이 필요하겠습니다. For the specialized services, for differential application of 5G traffic, we would need network slicing as well as the B2B basis. 질문하신 commercial benefit 관련해서는 지금 규제 측면에서는 5G 서비스를 제공, network slicing을 제공할 수 있는 기반은 마련된 것 같습니다. 다만 산업 전체적으로 장비나 기술 등의 부분들이 완벽하게 준비가 돼야지 서비스가 제공 가능할 것으로 전망하고 있습니다. You asked about the commercial benefit being materialized. First, in terms of the regulatory basis of providing 5G services, for instance, network slicing, the basis is already ready. It's all there. We think that from the industry's perspective, until the equipments and the technologies are ready, service would not be able to be deployed. KT는 현재 기업 전용 5G 인프라를 기반으로 다양한 산업 분야에서 5G B2B 유스케이스를 개발 중이며, 향후 특수 서비스 분야에서도 사업 기회가 더 늘어날 것으로 전망하고 있습니다. Based on KT's B2B or private 5G infrastructure, we're currently developing and testing many different B2B use cases. Going forward, we think that there will emerge quite a bit of opportunities when it comes to these specialized services underpinned by 5G. 5G B2B 서비스 관련해서 어떤 분야에서 가장 먼저 채택할 것이라는 관련 질문을 주셨습니다. You also asked which sector or segment will be first to adopt 5G B2B services. 현재 가장 먼저 진행되고 있는 것은 5G Smart Factory 사업입니다. At this point in time, it is 5G Smart Factory that's really at the forefront. KT는 Smart Factory를 중심으로 제조 산업 혁신에 앞장서고 있으며, 현대 로보틱스와 전략적 지분 투자를 통해서 핵심 역량 확보에 힘쓰고 있습니다. KT is going to continuously really innovate on the strategic industries that relate to Smart Factory, and we have very actively cooperated with Hyundai Robotics through equity investment into that entity. 현재 5G Smart Factory 합동 로봇 수주를 총 42건 해왔습니다. Now, when it comes to 5G Smart Factory, we were able to win orders for 42 collaborative robots. 5G Smart Factory 합동 로봇은 로봇과 서비스가 함께 제공되는 혼합형 상품으로 현재 제공하고 있습니다. The 5G Smart Factory collaborative robot is basically a blended product where a robot is provided together with the services. 이런 제조뿐만 아니라 조선이나 건설, 의료, 미디어, 공공 등에 관련해서 B2B 사업화 협력 사례들을 발굴하고 있고 현재 진행되고 있습니다. Not only in manufacturing, but shipbuilding, construction, healthcare, media, and public sector, we're currently developing multiple number of B2B use cases. 특히 현대 건설기계와 함께 무인 지게차를 제어하는 5G 기술을 기반으로 무인 지게차에 대한 긴급 제어 등을 지원하고 있습니다. For instance, we are providing technology that is 5G based that enable the operation of unmanned forklifters at Hyundai Construction Equipment. 삼성서울병원과는 5G 기반의 디지털 병리 진단을 수행하면서 수술 중 발생하는 고용량 데이터를 병리과 교수진에게 실시간으로 전달해 신속 정확한 분석이 가능하게 하고 있습니다. Also together with Samsung Medical Center, based off of a 5G technology, we're enabling real-time transmission of diagnostic pathological data, which is a high capacity, high volume data during the operation procedure. That data will be, on a real-time basis, fed back to the Department of Pathology so that exact diagnostic can be made by the relevant professionals. B2B 사업 영역은 Smart Factory, Connected Car, 실감형 미디어 등을 다양하게 해서 확장할 계획이고, 중소기업은 수요가 높은 솔루션, 중견기업은 클라우드 기반 플랫폼 중심으로 고객 맞춤형 5G B2B 서비스를 제공하여 새로운 시장을 개척할 계획입니다. In terms of B2B, we're going to really expand our positioning in Smart Factory, Connected Car, as well as highly immersive media. For SMEs, based off of high level of demand, we will be providing solution. For mid-sized companies, we will be able to provide platform services underpinned by cloud. We plan to customize our 5G services and technology according to the customer segment. 교환, 질문을 대기하고 계신 분이 계신가요? 현재 질문을 요청하신 분은 없습니다. 질문을 요청하실 때까지 잠시 기다리겠습니다. Currently, there are no participants with questions. We will wait for a second until there is another question. 더 이상 질문이 없으시면 이것으로 Q&A 세션을 마치도록 하겠습니다. 많은 질문과 관심에 감사드립니다. 바쁘신 일정에도 오늘 참여해 주신 모든 분들께 다시 한번 감사의 말씀을 드리며, 이상으로 2020년 연간 실적 설명회 마치도록 하겠습니다. 감사합니다. With no further questions, we would now like to close the Q&A session. I would like to thank you all for your questions and your interest. Once again, thank you for joining us today. We would like to now wrap up Q4 2020 earnings presentation by KT. Thank you.