Duration 3 years… Decision at the general meeting of shareholders in March next year
Following an assessment by CEO Koo Hyun-mo (pictured), who announced his intention to continue his tenure, KT’s CEO Candidate Review Board decided that he was “suitable”.
KT’s board announced on the 13th that it had been notified of the results of the selection, which determined that CEO Koo was eligible for a second term by the CEO Candidate Review Committee.
At that day’s board meeting, CEO Koo called for a review of the possibility of multiple candidates considering “concerns over the governance structure of companies with dispersed ownership” raised by major shareholders. After a thorough discussion, the Management Board decided to proceed with a further examination.
If the board accepts Koo’s proposal, it is expected that several candidates will be recommended and the next representative decided through a competition.
CEO Koo rose to the position as a person within KT, not a person recruited from outside. In 1987, he joined Korea Telecommunications Corporation as a researcher at the Economics and Management Research Institute, and later served as the head of the general manager of management support, management planning division and customer division and mean of KT. In March 2020, he was formally named CEO of KT. The term of office is until the shareholders’ meeting in March next year. If the final decision is taken, the mandate will be extended to March 2026.
It’s not that there are no obstacles to reappointment. Representative Koo was summarily indicted on charges of so-called “split sponsorship” to lawmakers and sentenced to a 15 million won fine in January. Rep. Koo disobeyed the summary order and a formal trial is currently pending in the court.
There is also the possibility that the National Pension Service (10.35% stake), KT’s largest shareholder, will put the brakes on. The National Pension Service exercised its voting rights against you on grounds such as “damage to company value” or “violation of shareholder rights and interests”.
The industry believes that the mood in the political world after the change of government can also have an impact. Currently, 3 out of 8 KT external administrators are pro-Moon Jae-in staff.
