'Eligible for Reappointment' Koo Hyun-mo Volunteers for KT CEO Election Race...

CEO Koo Hyun-mo, Firm on Reappointment Intentions
Proposes Primary Election... Emerges as Game Changer
About Four Internal Candidates Named
Next Step: Recruiting External Talent Candidates

KT CEO Koo Hyun-mo is attending and presenting at the 'KT AI Strategy Press Conference' held on November 16 at the Sofitel Ambassador Seoul Grand Ballroom in Songpa-gu, Seoul. Photo by Kang Jin-hyung aymsdream@

[Asia Economy Reporter Cha Min-young] Intense behind-the-scenes competition is underway over the appointment of the KT CEO as the company marks the 20th anniversary of its privatization. Current KT CEO Koo Hyun-mo, who expressed his intention to seek reappointment, received a 'qualified' judgment from the CEO Candidate Screening Committee but instead opted for a competitive election against multiple candidates. Some interpret that Koo, who never wavered in his intention to seek reappointment from the start, gave external candidates a reason to enter the race. There are also opinions that the internal atmosphere at KT, which had previously favored Koo's reappointment, has changed.

According to the telecommunications industry and labor unions on the 26th, KT's Governance Committee collected candidates internally until last week. After Koo Hyun-mo, who was judged qualified for reappointment by the KT CEO Candidate Screening Committee on the 13th, proposed a competitive election to the board, the need to select competing candidates arose. It is expected that after shortlisting final candidates through internal recommendations and external talent recommendations from professional organizations, one final candidate will be confirmed through a future board resolution. Since the stage of selecting minimum qualification requirements for external talents remains, candidate recommendations are expected to take place only in early January. A representative from a KT affiliate said, "There was no public internal announcement asking for separate applications," adding, "It seems candidates quietly applied from among the qualified candidates."

It was anticipated that more than 10 internal executives would apply, but it is reported that only about four expressed their intention to participate in the election. The qualifications for internal CEO candidates are 'those who have worked at the company or its affiliates for more than two years and hold a position of vice president or higher.' It is reported that CEOs of key media affiliates of KT subsidiaries and individuals holding president-level or higher positions within KT were among the candidates. As the consensus leaned toward supporting internal candidate Koo, the number of applicants was low. However, the dominant evaluation is that the applicants are 'weak' to directly compete with Koo, making it likely they will serve as mere figureheads. A KT official said, "CEO Koo Hyun-mo gives reasonable instructions without overreaching, so his reputation among employees is not bad," adding, "It won't be easy."

When a 37-to-1 competition occurred for KT's next chairman at the end of 2019, many of the internal candidates mentioned were close associates of former chairman Hwang Chang-gyu or held key positions overseeing wired and wireless networks and technology strategy. CEO Koo was also considered a 'strong candidate' as a close aide who served as the first chief of staff after former chairman Hwang's inauguration. Koo, who was recommended internally, contributed to solidifying KT's number one position in the wired network sector, including IPTV and internet, as head of KT's Customer & Media Division at the time.

With limited expectations for internal candidates, the market is turning its attention externally. Prominent external figures currently considered include former KTF Vice President Kim Ki-yeol, former KT President Lim Heon-moon, former Samsung SDS CEO Hong Won-pyo, former KT Networks Network Engineering Division Head Lee Kyung-soo, and former KT Enterprise Division President Park Yoon-young. Former People Power Party lawmaker Kim Sung-tae, who served as IT special advisor and ICT Korea Promotion Headquarters head during President Yoon Seok-yeol's election campaign, is also mentioned. However, there is frequent criticism that appointing older past figures as KT heads, who must lead competition in the fast-changing ICT industry, is inappropriate.

Koo Hyun-mo, the first internal CEO since KT's privatization, declared his intention to seek reappointment on November 8. However, when the CEO Candidate Screening Committee did not reach a conclusion at once on the 8th of this month, there were signs of a shifting atmosphere. Notably, Kim Tae-hyun, chairman of the National Pension Service, who recently marked his 100th day in office, expressed discomfort at a press conference, saying, "In widely held companies, issues arise regarding preferential screening of incumbents and the acceptance of external personnel in CEO or chairman appointments and reappointments," which was interpreted as a pointed remark targeting companies like POSCO and KT. The statement from the National Pension Service, the largest shareholder with over 10% stake, is also seen as a burden for CEO Koo. An opposition party official said, "While some analyses suggest support is concentrated on CEO Koo, conversely, the 'competitive election' method is also seen as a way to naturally allow external candidates to join the competition," adding, "There are various discussions, causing confusion."

KT remains silent regarding the CEO appointment process. A company official said, "I understand that the Governance Committee is currently conducting procedures to recruit candidates combining internal and external personnel," adding, "I do not know specific schedules or qualification requirements."

Meanwhile, the delay in appointing the head has also postponed personnel changes within KT. This is a difficult situation for a company that needs to plan for next year's business. Typically, KT conducts executive personnel changes in early to mid-December. Last year, as part of the response to the 'KT nationwide communication outage' in October, the company moved up the personnel orders to November 12, about a month earlier than usual, to stabilize the internal organization.

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