A Series of Bold Moves, Will Koo Hyun-mo's Experiment Write a New Chapter for KT?

KT's Giant Organization 'Transformation for Survival'
Promotion and Balanced Personnel Evaluation with Rival Presidents
Establishing a Dual CEO System... Younger and Faster KT

[Asia Economy Reporter Koo Chae-eun] KT under CEO Koo Hyun-mo is repeatedly making bold moves. A representative example is the establishment of a cooperative governance system with two presidents for the first time in KT's history. The significant increase in 'young' executives born in the 1970s in this personnel reshuffle also draws attention. At the same time, some organizations were consolidated to slim down and trim excess. This is seen as a 'transformation for survival' of the telecommunications giant KT Group, which boasts annual sales of 20 trillion won, 43 affiliates, and a total of about 60,000 employees (including affiliates).

◆ Cooperation with Rivals = On the 17th, the industry regarded the appointment of Park Yoon-young, a 'rival' who competed until the last moment for the next KT CEO position and currently head of the Enterprise Division, as a co-president as a groundbreaking 'balanced personnel appointment.' With Park Yoon-young's promotion, KT Group, ranked 12th in the business world, will establish a unique governance structure of a 'two-president system.' President Park will oversee the enterprise division business. As B2B industries such as smart factories, autonomous driving, healthcare, agriculture, smart cities, and logistics are activated due to 5G, decision-making in B2B business is expected to accelerate.

The organization has also slimmed down. Previously, there was a chairman and four presidents, but now there is no chairman and only two presidents. The numbers of vice presidents, executive directors, and managing directors have all decreased, with the total number of executives at 98, 12% fewer than the previous year. The total number of executives has dropped to double digits for the first time in four years. The generational shift in executive appointments is also notable. Among the 21 newly appointed executives (managing directors) this time, 27% were born in the 1970s (under 50 years old). With 22.5% of all KT executives under 50, about one in five, the organization is expected to be revitalized. In particular, Kim Bong-gyun, born in 1972 (48 years old), who leads the Biz business, was promoted to executive director this time, emerging as a symbol of generational change. KT explained, "The core of this personnel reshuffle is to transform into a young and agile practical organization."

◆ B2C-Centered Organizational Restructuring = The emphasis on 'customer-centric' organizational restructuring is also notable. The existing Customer & Media Division and Marketing Division were merged to create a new Customer Division, which will be dedicated to consumer customers (B2C), strengthening the B2C focus. The newly established Customer Division will oversee product 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.

The departments responsible for enterprise customers (B2B) and global customers (B2G) were integrated. The newly established AI/DX Business Division plans to lead digital innovation for both consumer and enterprise customers by integrating AI, big data, cloud, and IoT technologies into 5G communication services. An industry insider commented, "In the fiercely competitive ICT industry where competition is measured in 'seconds,' this personnel move by the giant KT appears aimed at speeding up decision-making and securing leadership in 5G."

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