'Koo Hyun-mo KT', 12% Reduction in Executives and Introduction of Multiple CEO System

Organizational Restructuring Executed on the 16th
Establishing Cooperative System with President Park Yoon-young
Reducing Executives by 12% Compared to Last Year and Merging Departments
New Customer Division Established... Focus on Close Customer Management

[Asia Economy Reporter Koo Chae-eun] The "Koo Hyun-mo KT ship" has implemented an organizational restructuring and executive appointments on the 16th for the new year. While forming a cooperative governance system with President Park Yoon-young, the number of executives was reduced by 12% compared to the previous year, and overlapping functions were consolidated. The establishment of a new "Customer" division to strengthen the B2C (business-to-consumer) sector also drew attention.

On the 16th, KT carried out an organizational restructuring based on these points. In addition to President Koo Hyun-mo, who has been nominated as the next CEO, President Park Yoon-young was promoted, establishing a dual-president "cooperative governance" system. This is expected to enable a more agile response to the complex and rapidly changing market. Specifically, one president, two vice presidents, and five executive directors were promoted. Park Yoon-young, who was promoted from vice president to president and led the Enterprise Business Division, is credited with playing a pivotal role in KT's remarkable achievements in the enterprise business sector.

President Park Yoon-young will oversee the Enterprise Division, which integrates the Enterprise Business Division and the Global Business Division. Lee Cheol-gyu, who was promoted from executive director to vice president and heads the Infrastructure Operation Innovation Office, was highly praised for establishing a company-wide telecommunications disaster response system and leading the development of next-generation telecommunications infrastructure innovation technologies. Shin Hyun-ok, head of the Management Division, was promoted for her contributions to establishing a performance-oriented personnel system and spreading a corporate culture that adheres to basics and principles.

◆Reducing Executives and Generational Change = With this personnel move, the average age of KT executives dropped to 52.1 years, about one year younger than the previous year's average of 52.9 years. The number of executives decreased by 12% from the previous year to 98. For the first time in four years since 2016, the number of executives was reduced to double digits. The number of senior executives at the executive director level and above was significantly reduced (from 33 to 25), signaling a shift to a younger and more agile operational organization.

Among the 21 newly promoted executives (managing directors), 27% were born in the 1970s (under 50 years old). Kim Bong-gyun, born in 1972, was promoted to executive director this time, signaling the entry of the 1970s-born generation into senior executive ranks. KT stated, "This personnel move is not simply about reducing the number of older executives but is based on the principle of appointing talents recognized for their performance and capabilities, maximizing the motivation of our members."

The organizational restructuring focused on ▲rapid and flexible acceptance of customer demands ▲accelerating digital innovation based on 5G and artificial intelligence (AI) ▲completing a global-level compliance management system. To transform into a customer-centric organization, the previously separated sales and product/service development organizations were integrated. The existing Customer & Media Division and Marketing Division were merged to create a new "Customer" division dedicated to consumer customers (B2C).

◆Transition to Customer-Centric Organization = The newly established Customer Division oversees product and service development and sales for wired and wireless businesses centered on 5G and Giga Internet, as well as media platform businesses such as IPTV and VR. Through this, the goal is to lead changes in customers' lives and provide greater value. Departments responsible for corporate customers (B2B) and global customers (B2G) were also integrated.

The existing Enterprise Business Division and Global Business Division were reorganized into the "Enterprise Division." Furthermore, the Enterprise Division focuses on activating the "digital innovation" of corporate customers and enhancing competitiveness. Regional headquarters, which were divided into sales and network, were also integrated. Eleven regional customer headquarters and six network operation headquarters nationwide were merged into six metropolitan headquarters to ensure organic customer service and technical support.

Park Jong-wook, head of KT's Strategic Planning Office (vice president), said, "KT has changed its organization to focus on customers in order to actively accept and promptly satisfy customer demands. We also expect that the talents promoted this time will not only support the management of Koo Hyun-mo, who has been nominated as the next CEO, but also bring change and innovation to KT."

This content was produced with the assistance of AI translation services.