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In the lead-up to its shareholders’ meeting, KT’s board of directors has announced plans for nominating external director candidates and improving corporate governance. However, the KT New Union has strongly criticized this move, labeling it as a “superficial overhaul.”
The KT New Union issued a statement asserting that this announcement, coming in the wake of a hacking incident and management-related risks that have damaged the company’s value, shows no real intent to address deep-rooted governance issues. They vehemently called for the withdrawal of Yoon Jong-soo’s reappointment as an external director and the elimination of politically-motivated appointments.
The union harshly criticized the attempt to reappoint Yoon Jong-soo, calling it “an act of deception against shareholders and the public.” They argued, “As the current chair of the ESG committee, Director Yoon bears significant responsibility for allegedly covering up a major hacking incident and the subsequent erosion of trust.” The union added, “Renominating someone who allowed the board to operate dysfunctionally is tantamount to repeating last year’s ‘self-reappointment’ controversy.”
The union also highlighted the lack of diversity in the board’s composition. While acknowledging the positive aspects of recruiting female executives and technical experts, they contended that the board still remains a “rubber-stamp entity” dominated by academics and former bureaucrats. The union argued that this closed structure, which excludes voices from consumers and civil society, makes effective oversight of management impossible.
The KT New Union expressed skepticism about the effectiveness of the external director evaluation system included in the renewal plan. They emphasized that for this system to serve as a genuine mechanism for removing incompetent and irresponsible directors, the evaluation criteria and processes must be fully transparent. Moreover, they insisted that the opinions of internal stakeholders, including the labor union, must be incorporated into the evaluation process.
The union particularly stressed the elimination of politically-motivated appointments from both previous and current administrations as a prerequisite for genuine reform. They claimed, “CEO Kim Young-seop, Vice President Lim Hyun-kyu, and others appointed under the current administration’s influence—including those from the prosecution, political circles, and LG CNS—are controlling management.” The union demanded that Kim Young-seop cease making personnel decisions and called for the next CEO candidate and the board to lead efforts in eradicating what they termed “human resource corruption.”
In conclusion, the KT New Union stated, “The remaining external directors, who share responsibility for the current management failures, must commit to a phased replacement.” They warned, “If the shareholders’ meeting proceeds with appointing unqualified directors and ignores the need for personnel reform, we will launch an aggressive campaign for their resignation.”
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