New Street Research - KT Corp (ADR) (KTC) ... South Korean Telcos What could the telcos do to address the “Value-up” programme?

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New Street Research

Chris Hoare

EUR 9344.00 For Business Accounts Only

South Korean Telcos What could the telcos do to address the “Value-up” programme?

In this note, we address the “Value-up Programme” in Korea. All three telcos have said they want to engage with and support the programme. So, what could they do? And how significant could it be?

22/03/2024 1 EN

Underlyings

KT Corp (ADR)

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US48268K1016 Berlin Stock Exchange South Korea

LG Uplus

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SK Telecom Co. Ltd.

SK Telecom is a wireless telecommunications services provider in the Republic of Korea (South Korea). Co. provides the following services: wireless Internet services, which include music portal services, game portal services, multimedia services, and wired and wireless integrated multimedia services; ubiquitous and convergence services, which include telematics, digital home, commerce, mobile radio frequency identification and mobile community; international roaming services, which include global system for mobile communication; video telephony services, which enable subscribers incorporating video conferences, as well as B2B services.

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KR7017670001 Korea Stock Exchange South Korea

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Analysts

Chris Hoare

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We met with all 3 of the Korean Telcos in Seoul over the last couple of days. All 3 are committed to engaging with and following the government “Value-up” programme, with the industry having started to become more shareholder friendly 2-3 years ago. We see the potential for higher industry returns (lower capex, opex) as well as better shareholder remuneration. Change will take time, but patient investors are set to do well from Korea as the market finally finds its place in the sun we think. Top pick remains KT. Key takeaways below.

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South Korean Telcos What could the telcos do to address the “Value-up” programme?

SK Telecom (Buy, TP: KRW 116,000, +120%) New shareholder return policy, somewhat underwhelming

South Korean Telcos Takeaways from Meetings with the Korean Telcos in Seoul

Charter Model Update

CHTR: quick thoughts following the call

Altice France (SFR)/Orange/Iliad/Bouygues ARCEP 2023 customer survery results

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