KT CEO gives up seeking second term
KT CEO Ku Hyeon-mo / Courtesy of KT
By Park Jae-hyuk
KT CEO Ku Hyeon-mo has decided to drop out of the race for leadership of the telecommunication firm for the next three years, the company said Thursday.
“After Ku notified KT's board of directors of his intention, the board members moved to exclude him from the list of next CEO candidates,” KT said in a press release. “The ongoing procedure to select the next CEO will be continued regardless of Ku's decision.”
The company added that Ku will officially resign as KT CEO at the general meeting of shareholders slated for March. He is said to be attending the Mobile World Congress in Spain later this month as planned.
Ku's decision came after he faced growing pressure from the government to step down.
KT's board had initially sought to reappoint him, despite opposition from the National Pension Service, the telecommunication firm's largest shareholder. The state-run pension fund claimed that KT board's recommendation procedure was unfair and lacked transparency.
Last Month, President Yoon Suk Yeol also indicated his administration's intention to replace the KT CEO, saying that “stewardship” is needed at companies with a complex ownership structure that were privatized after being operated in the past as state-run enterprises. In the capital market, stewardship refers to the interference of institutional investors in the management of companies they invest in.
In response, KT announced earlier this month that it will overhaul its CEO selection process with an open primary system.
As a result, Ku and various other candidates, including politicians, former government officials and former and incumbent executives of KT and other companies decided to participate in a competition to become the next head of the telecommunications firm.
According to KT, an advisory group comprised of experts from various fields will shortlist the candidates by the end of this month after screening them. The selected candidate will be appointed as KT's next CEO during the general meeting of shareholders next month.
Even though KT was privatized in 2002, former CEO Nam Joong-soo resigned after the launch of the 2008-13 Lee Myung-bak administration, while former Chairman Lee Suk-chae stepped down after being investigated by prosecutors under the 2013-17 Park Geun-hye administration.