Two Senior Figures Suggest "KT Is a Private Corporation, Perception Must Change"

Former KT Presidents Yong-kyung Lee and Joong-soo Nam's Advice
KT CEO Emphasizes Internal Promotion for Business Continuity
Governance Improvement and Strengthening Board Independence Needed

[Asia Economy Reporter Lim Hye-sun] The election to select the next head of KT has officially begun. A total of 18 outside candidates, including former lawmakers, high-ranking officials, and KT old boys (OB), along with 16 internal candidates including current CEO Koo Hyun-mo, have come under scrutiny. KT’s board of directors must choose a new CEO to lead KT within two weeks. There is only one week to vet 34 candidates. The schedule is tight. To enhance transparency and fairness, the board has unusually decided to make the entire selection process public. The KT CEO is the chief executive officer of a telecommunications company with annual sales and operating profits exceeding 25.6 trillion won and 1.6901 trillion won, respectively. The position also carries the responsibility for the livelihoods of 58,000 employees working across 50 affiliates. Inside and outside KT, many emphasize IT expertise and independence from political interference as key qualifications for the new CEO candidate. There are also considerable concerns that appointing a parachute candidate might destabilize the company.

Former KT President Lee Yong-kyung (left), Former President Nam Jung-soo

Lee Yong-kyung, former president who led KT first after its privatization in 2002 (aged 79), said on the 23rd, "From the perspective of business continuity, it may be the right choice to produce a manager from within," adding, "KT needs a steadfast talent who can withstand external pressures." KT has had a troubled history whenever the CEO changed. Each time the government changed, KT suffered from various disturbances. KT employees and investors were harmed each time. Lee said, "KT is a private stock company whose shareholders are the owners, like SK Telecom and LG Uplus," and "An IT expert who can focus on and lead KT’s growth should take the helm." He cited the expansion of KT’s business areas beyond telecommunications into artificial intelligence (AI), cloud, metaverse, and content, saying, "Along with flexible organizational management, management expertise capable of expanding the business globally is essential."

The criteria for evaluating CEO candidates according to KT’s articles of incorporation include career experience that can objectively assess knowledge of business and economics, performance that can objectively evaluate corporate management experience, and elements that can assess specialized knowledge in the information and communications field.

Nam Jung-soo, former president (aged 67), criticized, "People who apply just for the position are poison to the company," and said, "The perception in the political sphere must change first." He added, "The necessary virtues in CEO selection are inclusiveness, receptiveness, flexibility, decisiveness, and communication skills," explaining, "A CEO must be a person who can present a future vision and motivate members to move in that direction." While IT expertise is naturally necessary, he also emphasized that a high understanding of other industries is even more important.

Nam stated that to maintain a professional management system, the CEO development program must be strengthened. He said, "The company should discover and nurture talents who are evaluated as capable of becoming CEOs by verifying their abilities and leadership," adding, "The more internal talent pools there are, the stronger the company’s ability to check external forces."

Both veterans pointed to governance improvement as a condition for KT’s growth. They stressed the need to establish a structure that can escape the influence of the CEO and secure the independence of the board of directors. The largest shareholder, the National Pension Service, opposed the existing resolution citing procedural transparency, leading KT to nullify the previous decision. The 're-announcement of the next CEO candidate recruitment' effectively acknowledged the National Pension Service’s criticism. Lee advised, "If a process that can faithfully decide according to the articles of incorporation without external pressure proceeds, independent management is possible." Nam also said, "Open recruitment is not the only answer," adding, "The procedures for selecting outside directors and the CEO should be supplemented to meet the demands of the times."

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