[Featured Stock] KT, CEO Koo Hyun-mo Declines Reappointment... 'Management Risk' Hits New Low
[Herald Economy=Reporter Seokyungwon] KT is experiencing a decline of more than 2%, hitting a new intraday low on the 24th. This is interpreted as a result of expanded management risks following the current CEO Koo Hyun-mo, who had challenged for the next CEO position, announcing his intention to forgo reappointment.
As of 10:03 AM on the day, KT was trading at 30,850 KRW, down 2.68% from the previous trading day. Early in the session, the stock fell to 30,600 KRW, marking a 52-week low. KT's stock price has been declining continuously amid the emerging management risks.
According to KT on the previous day, CEO Koo stated at the KT board meeting that he would no longer compete with other candidates for the next CEO position and decided to withdraw from the candidate pool, and the board accepted Koo's decision.
In the industry, it is observed that the strengthened voting rights of the largest shareholder, the National Pension Service, and the National Pension Service's active expression of negative opinions toward Koo's reappointment have likely influenced Koo's decision to forgo reappointment.
The securities industry holds a negative outlook on KT's stock price.
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Kim Hongsik, a researcher at Hana Securities, said, "KT showed solid performance with a 21% increase in headquarters operating profit (111.1 billion KRW) in the fourth quarter of last year compared to the same period last year, and has been gradually increasing its shareholder return ratio recently, so fundamentally it is not bad," but added, "However, it will take considerable time for management to stabilize after the appointment of a new CEO," recommending reducing holdings during any rebound. Choi Namgon, a researcher at Yuanta Securities, said, "From an investor's perspective, uncertainty continues, exposing KT to uncertainty regarding the maintenance of the three-year plan and delays in personnel appointments," and forecasted, "Despite solid performance and aggressive shareholder return policies, it will be difficult for KT's stock price to rebound until the next CEO is appointed, which is the core reason for the stock's stagnation."
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