All information included in these consolidated financial statements is the representation of the management of the company. We did not review the financial statements of KT Freetel Co., Ltd. (KTF), a 41 percent owned

subsidiary at June 30, 2001, as of and for the six-month period ended June 30, 2001. The financial statements of KTF reflect total assets constituting 22.3 percent as of June 30, 2001 and revenues constituting 28.5 percent for the six-month period then ended of the related consolidated totals. Those financial statements were reviewed by other accountants whose report has been furnished to us, and our report, insofar as it relates to the amounts included for KTF, is based solely on the report of the other accountants.

A review consists principally of inquiries of company personnel and analytical procedures applied to financial data. It is substantially less in scope than an audit in accordance with Auditing Standards, established by the Financial Supervisory Commission of the Republic of Korea, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.

Based on our review, we are not aware of any material modifications that should be made to the accompanying consolidated financial statements in order for them to be in conformity with the Accounting Standards for Quarterly and Semiannual Financial Statements established by the Securities and Futures Commission of the

Republic of Korea.

The consolidated financial statements for the six-month period ended June 30, 2000, presented herein for comparative purposes, were reviewed by other accountants whose report dated August 4, 2000 stated that they were not aware of any material modifications that should be made to those statements in order for them to be in conformity with the Accounting Standards for Quarterly and Semiannual Financial Statements established by the Securities and Futures Commission of the Republic of Assets, liabilities and treasury stock transferred from KTM at book value are W2,517,563 million, W2,122,358 million and W28,898 million, respectively.

Korea Telecom’s interest in KT ICOM, a new subsidiary established at March 16, 2001 for the purpose of providing IMT-2000 service, is 62.6% as of June 30,

2001. KT ICOM acquired the right to purchase one license utilizing CDMA-2000 technology from the Ministry of Information and Communication of the Republic of Korea(the MIC) on December 15, 2000. In March 2001, KT ICOM paid half of the W1.3 trillion license fee proposed to the MIC and is expected to pay the remaininglicense fee within a period of ten years. However, the MIC has not yet determined the amount of any remaining fee and applicable interest rates payable on such amount.