Park Jae-hyuk is a seasoned journalist who has provided comprehensive coverage of South Korea's corporate dynamics, economic policies, industry challenges and the global positioning of Korean companies. Based on the articles he has written since joining The Korea Times in 2016, his investigative approach has helped readers understand corporate governance, economic trends and business strategies shaping South Korea’s economy.
Concerns grow over possibility of KT appointing CEO without ICT experience
A pedestrian passes by the KT headquarters building in Seoul in this March file photo. Yonhap
By Park Jae-hyuk
By Park Jae-hyuk
KT is facing growing controversy after it recently decided to remove “expertise in the ICT sector” as a requirement for leadership positions at the telecommunication firm, according to industry officials, Sunday.
Last Friday, the company disclosed its plan to revise its articles of association. Under the plan, CEO candidates are required to have expertise in corporate management, leadership, communication skills and relevant industries.
Critics say the decision is intended to enable the selection of a CEO with close ties to the Yoon Suk Yeol administration.
A group of former KT executives emphasized that knowledge of ICT is still necessary to lead the company.
“Amid KT's expansion to new digital businesses based on its conventional ICT business, a CEO without an understanding of the industry may face troubles with making decisions on important investments,” the former executives said in a statement.
One of KT's multiple unions also expressed concerns that the revision of the articles of association may be associated with appointing a CEO who has a friendly relationship with the incumbent administration.
Concerns have grown further as former high-ranking officials from conservative administrations were put on the list of the seven non-executive director candidates.
They are Hallym University President Choi Yang-hee, who served as the minister of science, ICT and future planning under the Park Geun-hye administration, and Kim & Chang senior adviser Yoon Jong-soo, who worked as the vice environment minister under the Lee Myung-bak administration. The former vice minister is also a member of the Presidential Commission on Carbon Neutrality and Green Growth under the Yoon government.
Korea University professor Kim Seong-cheol, a member of the Yoon administration's media policy control tower, was also recommended as KT's non-executive director.
In response to criticism, KT explained that its CEO needs knowledge of a wide range of industrial sectors, as the company is also doing business in financial services, media and real estate.
“We will prevent an unqualified outsider from leading the company,” KT Board Chairman Kim Yong-hun said in a letter to the company's shareholders.
Although KT was privatized in 2002, the incumbent and previous governments have meddled with its management by using the National Pension Service, the company's largest shareholder.
Under the presidency of Yoon, KT failed twice in its attempts to appoint the next leader, after facing severe backlash from the government and the ruling party.
In order to normalize its management by resolving the four months of leadership vacuum, KT seeks to convene its shareholders on June 30 and gain approval for the revision of its articles of association and for the appointment of its non-executive directors.