KT manages through shareholders' meeting

By Jun Ji-hye

KT held a general meeting of shareholders, Friday, with unions and civic groups gathering in front of the meeting venue and calling on KT Chairman Hwang Chang-gyu to step down.

About 50 members of unions and civic groups staged protests two hours before the beginning of the meeting, claiming Hwang should take responsibility for recent controversies, including allegations that he offered sizeable payments to powerful people for lobbying.

“Chairman Hwang has focused only on privatizing KT for the past five years,” said one group comprised of KT's former and incumbent employees. “KT has recently faced a management crisis due to the CEO risk, but what Hwang is doing is just keeping himself in office.”

Protesters also called on prosecutors to carry out thorough investigations into the allegations.

About 100 security guards were hired to block the front gate of the meeting venue.

Last year, journalists were allowed to enter the meeting to collect news, but were not allowed to do so this year. They could watch the meeting through a monitor in a separate room.

Hwang encountered booing and criticism during the meeting as well.

A shareholder said, “KT employees are suffering from low morale following a fire at a KT building in Ahyeon-dong and allegations over the firm's unfair hiring. Hwang should resign if he really cares about employees and the people.”

The fire broke out in the basement of the KT building in Ahyeon-dong, western Seoul, last November, causing unprecedented internet and phone disruptions.

Another shareholder claimed recent controversies surrounding the mobile carrier have resulted in a fall in the firm's stock prices, saying, “Stock prices will increase only after Hwang leaves.”

Hwang kept mostly silent while listening to criticism from shareholders, nodding his head several times.

He made remarks only regarding the fire, saying, “I feel truly sorry about the Ahyeon-dong fire. KT has been preparing measures to prevent the recurrence of such accidents.”

Hwang refused to comment on the ongoing investigation of the persecution, saying the issues were unrelated to agenda of the general meeting of the shareholders.

During the meeting, five agenda were approved including the appointment of two new executive directors ― Kim In-hoe, president of KT's corporate planning group, and Lee Dong-myun, president of KT's future platform business group.

The two presidents have been cited as leading candidates to become the next leader of the country's largest broadband service provider as Hwang raised hopes for an in-house figure, not an outsider, to succeed him.

An executive director is cited as the post closest to the next chairmanship, according to industry sources.