Major Telecom CEOs Reappointed
By Cho Jin-seo
Staff Reporter
CEOs of major telecommunications companies secured their seats in the year-end season while restructuring their organizations to cope with the volatile telecom market environment expected next year.
KT and SK Telecom, the two largest telecommunications firms, have decided to reappoint their current CEOs whose tenures end next spring. The only change of command in major telecom firms may take place at Hanarotelecom, which was acquired by SK Telecom earlier this month.
The vote of confidence on telecom CEOs does not indicate that the companies are expecting a halcyon time. On the contrary, the seasoned leaders remained in their positions as the firms prepare for massive shakeups in the mobile, telephone and Internet industries next year.
``We should make next year one of serious growth,'' said Kim Shin-bae, CEO of SK Telecom, at a year-end party with reporters on Dec. 12, which was held a week after the firm concluded the Hanarotelecom deal. ``If there is no growth, then there is no future for us and there is no future for the IT industry,'' he said, adding that he volunteered for the title of Chief Growth Officer.
Revenues of KT and SK Telecom have stalled or grown slightly over the past few years at 11 trillion won and 10 trillion won, respectively. But both companies predicted that things will be a little different next year, with the emergence of new services such as the Internet Protocol TV and third-generation mobile phone services. The government's dedication to lower communication fees and looser telecom market regulations has also encouraged firms to consider aggressive mergers and acquisitions.
SK Telecom, Korea's largest mobile operator, started retooling its organizations to fit a growth-focused strategy. As its first step, its organization was divided into four divisions, giving more autonomy and responsibility to executives of each part, which is named CIC (company in company). Kim was appointed as the chief of the Corporate Management Support Company, continuing his duty as the CEO, while three other divisions had new heads.
With his second term starting next March, SK Telecom's Kim will continue his rivalry with KT CEO Nam Joong-soo. Nam and Kim have been drawing attention as alumni of Kyonggi High School's class of 1974.
On Dec. 3, KT's outside directors gave a unanimous vote to Nam Joong-soo to renew his 3-year term. The firm's general shareholders' meeting in February will approve the decision. In his year-end speech, Nam said the firm will try to pass the 12 trillion-won mark next year for the first time in its history and will seek ways to streamline itself and to merge with KTF, its mobile service subsidiary.
There were no exciting changes this winter in the top positions of other companies. LG Telecom CEO Jung Il-jae, KTF CEO Cho Young-chu, LG Dacom CEO Park Jong-eung and LG Powercom CEO Lee Joung-sik have remaining tenures of one or two years.
Hanarotelecom CEO Park Byung-moo may leave the firm when SK Telecom officially takes over the management as early as January. A company official said that rumors are spreading in the company that the former lawyer may return to the finance industry, with 65,000 shares, which he bought two years ago at nearly half of currently traded price, in his pocket.