KT Kim Young-seop's Commitment to Continuing Digico... "Enhancing IT Capabilities to Lead the Digital Ecosystem"

On Large-Scale Restructuring Rumors: "Only Routine Personnel Changes Expected"

Kim Young-seop, CEO of KT, expressed his intention to continue the DIGICO strategy. DIGICO is a slogan introduced by former KT CEO Koo Hyun-mo, representing a transformation strategy into a 'digital platform company.' The plan is to combine telecom (Telco) capabilities with IT capabilities to secure leadership in various fields such as smart cities and the metaverse. He actively denied rumors of large-scale restructuring both inside and outside the company, emphasizing that only routine personnel changes would take place.

Challenging Big Tech with DIGICO Strategy Enhanced by IT Capabilities

At his first press conference since taking office on the 7th at Le Meridien Hotel in Myeongdong, CEO Kim said, "KT has long been engaged in the Telco business, and technology in Korea is top-notch," adding, "When IT capabilities complement the overall Telco capabilities, the tasks to be done, the things we want to do, and the regions we can enter will unfold infinitely."

He stated, "DIGICO means rearming Telco with IT and delivering differentiated or innovative services. We will put more effort into DIGICO, gather capabilities, and proceed intensively. Rather than achieving quick results, we will steadily build a foundation, and later, you will definitely see a distinctly changed KT," he emphasized.

Kim's vision is to inherit and develop DIGICO to reclaim the digital paradigm leadership lost to big tech companies. Although global big tech firms have secured many areas, he believes there are still many fields to target, such as smart cities, the metaverse, and energy sectors.

He said, "I don't know if KT's challenge will be seen as a challenge by them (big tech industry), but currently, it's like a mosquito or a fly hitting a passenger plane. Still, it's a field we must pursue, and as all technologies converge, new markets will emerge, and that is how we gain presence."

"No Large-Scale Restructuring"

Regarding rumors of large-scale restructuring, CEO Kim actively denied them. There had been many speculations inside and outside KT that, given Kim's background as a 'restructuring expert' who worked at LG's restructuring headquarters, a personnel shake-up would soon occur.

Kim said, "There will be dismissals and new hires at a routine level, but unlike past CEO changes, there will be no artificial restructuring involving thousands of people." He added, "Personnel decisions must be made carefully. This year-end regular personnel reshuffle should serve as a starting point to remove various issues and unite KT employees to move forward together."

Regarding the internal controversy over vested interest cartels, he said, "I am superficially aware that there are stories about who is on whose side or who is favored," adding, "After the year-end personnel changes, I will tell everyone to erase such thoughts from their minds. We aim for a 'One KT' that moves forward together toward the goals we set."

On the possibility of recruiting external talent such as those from LG, CEO Kim responded, "We will primarily select excellent people within KT. If we cannot find them internally or it is unavoidable, we will look externally, but we have no intention of prioritizing hiring LG people."

He continued, "After talking with people, I found KT employees to be surprisingly excellent. There are dedicated and faithful talents who stay in their positions quietly," adding, "If we create opportunities and directions to motivate them voluntarily, experts will emerge."

"Corporate Value Is Independent of Performance... Not Obsessed with Sales or Profits"

CEO Kim emphasized that he will focus on fundamentally increasing corporate value rather than short-term external growth. He said, "Sales and net profits are unrelated to stock price and corporate value in the short term," adding, "We will not be obsessed with outward growth in sales and profits."

He cited the example of Coupang, which went public on the U.S. stock market with a valuation of 100 trillion won despite being a deficit company, saying, "Even though it posts losses every year, its stock price is supported because future potential growth is expected. KT will also accumulate a growth base and energy, which will fundamentally support shareholder returns."

Regarding the possibility of mergers and acquisitions (M&A), he said, "We will internalize businesses related to our identity where necessary," but added, "Instead of recklessly doing M&A to build a large company, we will create a 'good company.'"

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