The Three Major Telecom Companies Start Shareholder Meetings Today... Spotlight on 'New Businesses'

[Asia Economy Reporter Eunmo Koo] Starting with LG Uplus on the 19th, the three major domestic mobile carriers will hold their regular general meetings of shareholders. At this year's shareholder meetings, each company will present key agendas such as business structure reorganization and strengthening new businesses in line with the non-face-to-face era, aiming to enhance corporate value.

LG Uplus, which is kicking off the season, will hold its shareholder meeting at the LG Uplus Building in Yongsan-gu, Seoul, addressing ▲approval of financial statements ▲appointment of inside and outside directors ▲appointment of audit committee members ▲approval of director remuneration limits, among other matters. Through the appointment of directors, LG Uplus will officially appoint President Hwang Hyun-sik as Chief Executive Officer (CEO). If the agenda passes at the meeting, President Hwang will assume the position of CEO for a three-year term.

Attention is focused on whether the Hwang Hyun-sik administration will unveil a concrete new business blueprint in its first year at this shareholder meeting. Previously, President Hwang expressed his intention to discover future growth engines by integrating new business-related organizations scattered across various sectors such as smart health, security, education, advertising, content, and data businesses. Amid evaluations that no clear direction has emerged in the non-telecom sector compared to competitors, it is anticipated whether a detailed blueprint, including the role of the newly established New Business Promotion Division responsible for new businesses, will be announced at this meeting.

Additionally, in accordance with the amended Capital Market Act requiring at least one female member on the boards of large corporations, Je Hyun-joo, CEO of Yellowdog, will be appointed as an outside director. CEO Je is expected to provide advice on technology and industry trends based on her experience in startup investments. Kwon Young-soo, COO (Chief Operating Officer and Vice Chairman) of LG Corporation, will be reappointed as a non-executive director.

The biggest focus of SK Telecom's shareholder meeting scheduled for the 25th is the plan for governance restructuring. SK Telecom is highly likely to pursue a transition to an intermediate holding company by splitting into business and investment companies. Through this transition, SK Hynix can be elevated from a grandchild company to a subsidiary of SK Corporation, expanding operational flexibility, while the investment company can enhance its value as an ICT specialized company through subsidiary listings. Especially, with the revision of the Fair Trade Act requiring the completion of the intermediate holding company transition within the year, attention is concentrated on whether more concrete messages will be delivered despite the plan not being officially listed as an agenda item.

Establishing the basis for quarterly dividends through amendments to the articles of incorporation and granting stock options to executives are also noteworthy. Quarterly dividends and stock option grants demonstrate a commitment to enhancing shareholder value and strengthening responsible management, and are interpreted as strategic moves to secure votes in future governance restructuring.

The last to hold its meeting, KT, will convene on the 29th to expand new businesses and strengthen group restructuring. Since his inauguration last year, CEO Koo Hyun-mo has expressed his intention to pursue continuous restructuring aimed at enhancing the competitiveness and corporate value of group companies. To this end, KT is proceeding with business restructuring by unveiling the B2B brand 'KT Enterprise' and the content-specialized corporation 'KT Studio Genie.'

At this shareholder meeting, KT is expected to further support its transition to a digital platform company (Digico) by adding 'smart logistics' and 'bio' to its business objectives. Smart logistics is a business that introduces ICT into existing logistics operations, managed by KT Labs, newly established under the AI·DX Convergence Business Division through the organizational restructuring last December. The bio business, based on AI and big data, is a healthcare business overseen by the Future Value Promotion Office.

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