‘Penalty-Free’ KT Sees 210,000 Departures
(Seoul = Yonhap News) Reporter Lee Jin-wook reports that the number of KT subscribers who switched to other carriers during the penalty-free period exceeded the scale during the SK Telecom waiver period. According to the telecommunications industry on the 11th, 216,203 subscribers left KT from last month’s 31st to the 10th of this month after KT’s penalty exemption began. The photo shows a mobile carrier store in Eunpyeong-gu, Seoul, on the same day. Jan 11, 2026. [email protected]
(Seoul = Yonhap News) Reporter Kim Ji-yeon reports that on the 13th, Hana Securities stated that the important focus for KT this year is shareholder returns, anticipating a gradual increase in stock prices as the verification process progresses.
In a report, Kim Hong-sik, an analyst at Hana Securities, suggested KT as the top pick in the telecommunications service sector, reasoning that the one-time costs accounted for would result in stable performance by the fourth quarter of 2025. Considering cash flow and the basis for dividend resource calculation, it was expected that hacking-related losses would have a minimal impact on dividends for last year’s fourth quarter and the first quarter of this year.
He also noted an expectation of high profit growth in 2026 excluding one-time gains and losses, predicting that the negative impacts related to hacking have already been reflected in stock prices, given the fine could be estimated.
Particularly, he noted that considering the increase in shareholder returns over the last two years, the stock price increase this year might surpass expectations. Despite being earnings season and acknowledging sluggish fourth-quarter performance, a stepped stock price increase is anticipated for January and February.
Regarding the announcement of KT’s 4th quarter 2025 results on February 10th, he noted that the results are expected to be weaker than the consensus (operating profit consensus of 2,756 billion), reflecting hacking-related losses and factoring in a complete loss treatment of 100 billion won for SIM card replacement costs, with a partial reflection of fee reduction effects. The impact of one-time costs is expected to be larger than initially anticipated.
Kim predicted that KT’s stock price might show an upward trend from January to May, asserting that despite the reflection of hacking costs, improved cash flow means the dividend per share (DPS) for the 4th quarter of 2025, to be announced in February, is expected to be 600 won per share, same as the previous quarter, alleviating market concerns. The 1st quarter 2026 DPS is expected to be 700 or 900 won.
He mentioned that initially, a forced buyback of treasury shares seemed likely. However, there is a growing possibility that sectors with foreign ownership limits could apply exceptions to this obligation. Despite the penalty-free measures, the DPS growth trend continues, and additional treasury share purchases or dividend conversions are expected, potentially positively affecting KT’s stock price.
Kim maintained a ‘buy’ rating for KT with a 12-month target price of 76,000 won. KT closed the previous trading day at 51,700 won.