The Three Major Telecom Companies Start Shareholder Meetings Today... LGU+ Approves Sale of Payment Business

[Asia Economy Reporter Seulgina Jo] Starting with LG Uplus on the 20th, the regular general meetings of shareholders of the three major domestic telecommunications companies have begun. This year, a large-scale reshuffle of internal and external directors whose terms are expiring will take place. Each company has introduced online live streaming and electronic voting systems or installed thermal imaging cameras at the entrance of the general meeting hall in consideration of concerns about the spread of the novel coronavirus infection (COVID-19).

Among the three telecom companies, LG Uplus, which held its general meeting first, resolved agenda items such as ▲partial amendment of the articles of incorporation ▲appointment of directors ▲approval of the division plan at the main auditorium of its Yongsan headquarters. LG Uplus’s general meeting ended without dissent within 20 minutes of starting.

On this day, LG Uplus approved a division plan to sell its electronic payment business, including PG business, VAN business, and fund management business, to Viva Republica, the operator of Toss. The division will be carried out by establishing a new company called 'Toss Payments,' with the division date set at midnight on June 1. This move is to streamline non-core businesses and focus on 5G and paid broadcasting, among others.

As new outside directors and audit committee members, LG Uplus appointed Lee Jae-ho, former CFO and Vice President of Coway. He is a 'financial expert' who has served as CFO of NCSoft, CEO of NCWest, and CFO of Coway. Along with this, LG Uplus also passed an amendment to the articles of incorporation regarding the method of board resolution. This reflects Article 391, Paragraph 2 of the Commercial Act, which recognizes attendance even with voice connection only, without video.

Ha Hyun-hoe, Vice Chairman of LG Uplus, said to shareholders, "This year, the telecommunications industry is expected to become more competitive amid rapid environmental changes," and added, "We will innovate customer experience and actively promote digital transformation for this purpose." He emphasized, "The mobile and home businesses are continuously shifting from traditional offline-centered businesses to non-face-to-face online markets. We intend to proactively respond by promoting digital transformation, and new business opportunities will be created in the process."

Following LG Uplus, which took the lead, SK Telecom’s regular general meeting will be held on the 26th. SK Telecom, which was the first among the three telecom companies to introduce electronic voting, will live stream this year’s general meeting online to prevent the spread of COVID-19. Questions will be received in advance, and management including President Park Jung-ho will answer them on site.

The main agenda for SK Telecom is the reappointment of President Park, who took office in 2017, as an internal director. After confirming his reappointment, President Park is expected to accelerate governance restructuring such as establishing an intermediate holding company, changing the company name, and listing subsidiaries during his second term. Additionally, SK Telecom revealed its intention to strengthen its AI business by including AI technology expert Associate Professor Kim Jun-mo of KAIST as a new outside director. Another outside director candidate, Professor Kim Yong-hak, Emeritus Professor at Yonsei University, is known as a partner in SK Group Chairman Chey Tae-won’s 'social value' management.

Along with this, SK Telecom will also expand stock options for executives. SK Telecom, which was the first mobile carrier to grant stock options to key executives in 2018, will continue this practice for the third consecutive year. This is interpreted as a measure to strengthen responsible management to increase medium- to long-term corporate value.

KT, which is transitioning from CEO Hwang Chang-gyu to CEO Koo Hyun-mo, will hold its general meeting on the 30th, the latest among the three telecom companies. Due to concerns about the spread of COVID-19, KT is introducing electronic voting for the first time this year. The main issue at this year’s general meeting is the appointment of internal director candidate President Koo, who is an internal personnel.

The scale of director reshuffling is also the largest among the three telecom companies. At this general meeting, KT will replace all internal directors and half of the outside directors. New outside director candidates include Pyoh Yeon-myung, former President of Lotte Rental who competed with President Koo for the CEO position, Professor Kang Choong-gu of the Department of Electrical and Electronic Engineering at Korea University, Professor Park Chan-hee of the Department of Business Administration at Chung-Ang University, and Associate Professor Yeo Eun-jung, specializing in finance at the Department of Business Administration at Chung-Ang University. Internal director candidates are President Koo, President Park Yoon-young of the Enterprise Division, and Vice President Park Jong-wook of the Management Planning Division.

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