By Kim Yoo-chul
KT Corp., the nation's second largest mobile carrier, announced Monday that it has selected Hwang Chang-gyu, a former CEO of Samsung Electronics, as the nominee for its next president.
He will serve a three-year term if endorsed at a shareholders' meeting early next year, the firm said.
Hwang served as the president of Samsung's memory chief business division from 2001 to 2004. He now teaches at Sungkyunkwan University in Seoul. Hwang competed with three candidates including former SK hynix Chief Executive Kwon Oh-chul for the CEO post.
Hwang was credited for his role in elevating Samsung to the world's largest manufacturer of computer memory chips and developing other advanced semiconductor products.
Hwang is known for his declaration that the memory capacity of chips could be doubled every 12 months, a theory dubbed "Hwang's Law," in comparison to Moore's Law that stated the computing power of chips doubles every 18 months.
The nomination of Hwang as the next KT CEO represents the firm's resolution to become a more profitable and trusted company, KT officials said.
KT's top post has been vacant since former chief Lee Suk-chae resigned on Nov. 12 amid a widening investigation by prosecutors into corruption allegations against him. There had been speculation that he was in conflict with the Park Geun-hye administration.
Lee assumed the post in 2009 and his second term was due to end in May 2015. Lee's predecessor, Nam Joong-soo, also quit ahead of his tenure amid reports of political pressure.
Lee is being investigated for his alleged involvement in the sale of two of the firm's Mugunghwa satellites at bargain prices, in addition to quietly transferring ownership of two others. Critics say the sale resulted in heavy losses for the company.
KT's business performance remained weak in the third quarter of the year on a fall in the number of subscribers, with its net profit sinking 63 percent year-on-year to 136 billion won ($127 million).
Sales fell 7.3 percent year-on-year to 5.73 trillion won over the cited period.
Founded as a public corporation, KT became a private entity in 2002. The government currently has no stake in KT, but it has influenced nominations of its key executives.
The state-run National Pension Service (NPS) holds the largest number of shares with 8.65 percent, though it has no managerial rights over the company. Foreign shareholders own a combined 43.9 percent in KT, and other major shareholders include NTT DoCoMo of Japan, which holds a 5.46 percent stake, and Mirae Asset Global Investments, which has 4.99 percent. Under the current shareholder structure, there is no controlling shareholder.
KT Corp., the nation's second largest mobile carrier, announced Monday that it has selected Hwang Chang-gyu, a former CEO of Samsung Electronics, as the nominee for its next president.
He will serve a three-year term if endorsed at a shareholders' meeting early next year, the firm said.
Hwang served as the president of Samsung's memory chief business division from 2001 to 2004. He now teaches at Sungkyunkwan University in Seoul. Hwang competed with three candidates including former SK hynix Chief Executive Kwon Oh-chul for the CEO post.
Hwang was credited for his role in elevating Samsung to the world's largest manufacturer of computer memory chips and developing other advanced semiconductor products.
Hwang is known for his declaration that the memory capacity of chips could be doubled every 12 months, a theory dubbed "Hwang's Law," in comparison to Moore's Law that stated the computing power of chips doubles every 18 months.
The nomination of Hwang as the next KT CEO represents the firm's resolution to become a more profitable and trusted company, KT officials said.
KT's top post has been vacant since former chief Lee Suk-chae resigned on Nov. 12 amid a widening investigation by prosecutors into corruption allegations against him. There had been speculation that he was in conflict with the Park Geun-hye administration.
Lee assumed the post in 2009 and his second term was due to end in May 2015. Lee's predecessor, Nam Joong-soo, also quit ahead of his tenure amid reports of political pressure.
Lee is being investigated for his alleged involvement in the sale of two of the firm's Mugunghwa satellites at bargain prices, in addition to quietly transferring ownership of two others. Critics say the sale resulted in heavy losses for the company.
KT's business performance remained weak in the third quarter of the year on a fall in the number of subscribers, with its net profit sinking 63 percent year-on-year to 136 billion won ($127 million).
Sales fell 7.3 percent year-on-year to 5.73 trillion won over the cited period.
Founded as a public corporation, KT became a private entity in 2002. The government currently has no stake in KT, but it has influenced nominations of its key executives.
The state-run National Pension Service (NPS) holds the largest number of shares with 8.65 percent, though it has no managerial rights over the company. Foreign shareholders own a combined 43.9 percent in KT, and other major shareholders include NTT DoCoMo of Japan, which holds a 5.46 percent stake, and Mirae Asset Global Investments, which has 4.99 percent. Under the current shareholder structure, there is no controlling shareholder.
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