Staff Dislike Yes-Men
Excessive Protocols Disappear, Direct Reporting Increases
Emphasizing Communication and Practicality for Efficient Decision-Making
Numerous Issues... High Expectations for Changes Inside and Outside KT
[Asia Economy Reporter Koo Chae-eun] "I dislike yes-men. Speak your mind with conviction."
KT's incoming CEO, Koo Hyun-mo, made this request during a meeting with executives. Ahead of his March inauguration, he revealed his management philosophy at the introductory meeting. Having lowered the CEO title from 'Chairman' to 'President,' he intends to emphasize 'communication' over 'hierarchy' and 'practicality' over 'show,' aiming to drive innovation at KT.
◆ "Don't be a yes-man" = According to industry sources on the 17th, President Koo is carefully selecting representatives for 42 affiliates, including KT's key subsidiaries such as Estate, Skylife, and BC Card. He has already appointed representatives for KTH (Lee Pil-jae, former Head of Marketing), KT Telecop (Park Dae-soo, former Head of CR Division), and KT SAT (Song Kyung-min, former Secretary to the CEO of the Management Planning Office). As follow-up appointments proceed, candidates are busy understanding Koo's management style. A senior KT official said, "Previously, no one dared to say 'no' face-to-face, but the new appointee is known to dislike aides who only say yes," adding, "Many executives are preparing meetings with the appointee with this in mind."
Compared to before, excessive formalities have disappeared and direct reporting has increased. A KT official stated, "President Koo often says, 'Why can't people meet people?' showing his emphasis on communication," and added, "Although he has many business ideas accumulated over his 33 years as a KT man, he listens carefully to employees' opinions and takes other perspectives seriously."
Koo Hyun-mo's emphasis on communication is linked to his status as an 'internal CEO.' He is the second internal appointment in 11 years since Nam Joong-soo took office in 2005. Having worked at KT for 33 years, he has held various roles across departments, building deep relationships with employees. As a senior figure, this connection continues through deep and active communication even after being appointed CEO.
◆ Challenges such as expanding 5G subscribers = President Koo plans to enter new fields through bold innovation. Immediate tasks this year include △securing 5G subscribers in its second year, △maintaining the No.1 position in paid broadcasting through M&A, △establishing AI strategies, △securing next-generation media content, and △normalizing K-Bank. As of the end of last year, 5G subscribers numbered approximately 1,419,388. This represents about 25-30% of the total including the three major carriers, maintaining a similar share to LTE, though the gap with the third operator LG Uplus has significantly narrowed.
The paid broadcasting business, which holds a 31% market share and maintains the No.1 position, is also a critical issue. SK Telecom and LG Uplus have each acquired T-broad and CJ Hello, narrowing the market share gap to single digits. Urgent issues include improving profitability in the wireless sector, which has deteriorated due to astronomical 5G infrastructure investments, growing the newly launched OTT service 'Season' to compete on par with rivals, and normalizing K-Bank, which faces difficulties in capital expansion amid various adversities.
KT recorded sales of 24.3 trillion won last year, a 3.8% increase. The target for this year is 25 trillion won. A KT official said, "Unlike before, the CEO selection process was independent without external pressure or influence, so internal cohesion around the new CEO's leadership is high," adding, "Business divisions have high expectations that current challenges facing KT will be addressed with strong drive."
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