KT Powertel Union Opposes Sale That Degrades Radio Service Quality... Demands Meeting with KT CEO Koo Hyun-mo

KT Powertel Union Delivers Request for Meeting to CEO Koo Hyun-mo to Withdraw Sale
KT Powertel Sale Pending Public Interest Review by Ministry of Science and ICT

On the morning of the 10th, Park Gap-jin, Chairman of the Emergency Measures Committee of KT Powertel, is advocating against the sale of KT Powertel at the KT Gwanghwamun Building East in Jongno-gu, Seoul.

[Asia Economy Reporter Eunmo Koo] “KT’s sale of KT Powertel will lead to a decline in radio communication service quality and could trigger another Itseop incident.”

On the morning of the 10th, the labor union of KT Powertel, KT’s specialized radio communication subsidiary, submitted a request for a meeting with KT CEO Koo Hyun-mo to demand the withdrawal of the sale. The KT Powertel union, which has been holding rallies for 109 days, claimed that the sale was a blind contract made without prior discussion with employees and executives and demanded its cancellation.

Park Gap-jin, chairman of the KT Powertel Emergency Countermeasures Committee, stated, “The KT Powertel union has held more than ten labor-management council meetings with KT Powertel management, but only differences in opinion have been confirmed, and time is passing without progress. Since decision-making by KT Powertel management is practically impossible, we plan to demand the withdrawal of the sale through a direct meeting with KT CEO Koo Hyun-mo, who decided on the sale.”

KT announced on January 22 that it would sell KT Powertel to IDIS, a domestic video security solution specialist company. The deal involves selling KT’s 44.85% stake in KT Powertel for 40.6 billion KRW. The sale of KT Powertel is considered the first case of restructuring a telecommunications business affiliate since CEO Koo Hyun-mo took office last year.

The KT Powertel union argues that if IDIS, a manufacturer rather than a telecommunications operator, acquires the company, it cannot guarantee service quality. Chairman Park said, “KT Powertel was able to maintain service and generate profits for 35 years because of the synergy with KT, a telecommunications-based company. If KT Powertel is separated from KT and managed by a manufacturer unrelated to telecommunications, the past synergy will be impossible, and the burden of service quality degradation will fall on customers, potentially causing a second Itseop incident.”

On the morning of the 10th, KT Powertel union members are holding a rally against the sale of KT Powertel at the KT Gwanghwamun Building East in Jongno-gu, Seoul.

Furthermore, the KT Powertel union insists that the Ministry of Science and ICT must responsibly review whether this sale aligns with the public interest. The sale of KT Powertel must pass the Ministry’s public interest review before completion. When the largest shareholder or management rights of a telecommunications carrier change, it is necessary to assess whether it harms the public interest.

Chairman Park said, “We have submitted petitions demanding a thorough public interest review to the Ministry of Science and ICT five times. Since various quality issues may arise from the transfer of a radio communication service provider from a telecommunications company to a non-telecommunications company, the Powertel Emergency Committee will persistently demand a fair public interest review by the government.”

KT, which is transitioning into a digital platform company (Digico), has been restructuring its group companies focusing on new businesses with high growth potential based on strengths such as AI, Big Data, and Cloud (ABC) since CEO Koo’s inauguration. KT plans to secure resources for new growth engines through group restructuring, including the sale of KT Powertel, and reorganize its group portfolio into a platform company centered on growth businesses such as finance, media, and content.

KT Powertel is a KT affiliate specializing in industrial radio communication (TRS). In 2010, it was a key KT affiliate with annual sales reaching 127 billion KRW, but as the telecommunications market shifted to LTE and 5G mobile communications, sales declined to 62.7 billion KRW in 2019, experiencing stagnation. The company has about 140 employees.

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