"Prohibition of Personnel and Investment Interference, Semiannual Compliance Checks"... KT Board Revises 'Ethics Charter'

"Enhancing Independence and Ethics of Outside Directors"

The KT board of directors has initiated institutional reforms to strengthen the independence and ethics of outside directors.

KT Gwanghwamun Building. Photo by Yongjun Cho jun21@

On May 14, KT announced that it had revised its board ethics charter and updated the delegation contract for outside directors. These measures are intended to prevent outside directors from improperly intervening in the company’s key management decisions.

In this regard, the ethics charter now clearly specifies prohibited acts. Going forward, outside directors will not be allowed to exert any influence that undermines fairness in matters related to personnel, business operations, or investments. To foster an advanced board culture, each outside director will also be required to complete an ‘Ethical Practice Self-Checklist’ every six months. This introduces a system to help directors review and manage their own compliance with the ethics charter.

The delegation contract for outside directors has also been revised. The updated contract includes a clause requiring outside directors to comply with all relevant laws, the articles of incorporation, the corporate governance charter, and the ethics charter for outside directors.

If an outside director is found to have violated these obligations or breached regulations related to independence or ethics, the board may issue a warning by resolution. It may also restrict the director’s attendance at board and committee meetings, participation in deliberations, and voting rights. In serious cases, the board may recommend resignation or take other appropriate actions.

This institutional reform coincides with the launch of a new board of directors. KT board chair Kim Yonghyun stated, “We pursued these reforms not only to ensure compliance with laws and regulations, but also to enhance the ethical awareness of each board member and establish a more responsible board management system. Through continuous improvement of our governance structure, we will contribute to the company’s sustainable growth and enhancement of corporate value, and meet the expectations of our customers and shareholders.”

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