Returning to the Starting Point to Reflect Social Demands
Strengthening Fairness, Transparency, and Objectivity in Candidate Evaluation
[Asia Economy Reporter Lim Hye-seon] KT's board of directors announced on the 9th that it will return to the starting point and reinitiate the next CEO appointment process through an open competitive method.
KT's board had confirmed Koo Hyun-mo as the next CEO candidate at the end of last December. However, to align with the direction of improving ownership-dispersed corporate governance requested by major stakeholders, CEO Koo expressed his intention not to claim the right as the next CEO candidate and to compete again through an open competition. Accordingly, after several discussions, the board decided through a resolution to reinitiate the CEO appointment process using an open competitive method.
The KT Governance Committee will form a pool of outside candidates through an open recruitment. Eligibility requirements, according to the articles of incorporation, include having abundant knowledge and experience in management and economics, successful experience in corporate management, possessing the qualities and capabilities of a top executive, and holding professional knowledge and experience in the information and communications field. Document submission will be accepted from the 10th until 1 p.m. on the 20th. Applications will be accepted by mail and in person. Detailed information about the open competition, including applicant submission documents and evaluation methods, can be found on the KT website’s notice menu starting from the morning of the 10th.
Additionally, the KT Governance Committee plans to form an appointment advisory group composed of industry experts in fields such as economics and management, leadership, partnerships and investments, law, and future industries to ensure fair evaluation. The advisory group will consider the CEO candidate requirements stipulated in the articles of incorporation and refer to various information about the candidates to conduct candidate verification and shortlisting.
The CEO Candidate Screening Committee will conduct interviews based on evaluation criteria set by the board for the candidates selected by the Governance Committee. During this process, opinions on the optimal KT CEO image will be gathered from key stakeholders, including domestic and international shareholders, and utilized in the evaluation.
The board plans to finalize one individual among the CEO candidates decided by the CEO Candidate Screening Committee as the final CEO candidate.
In particular, KT’s internal directors have decided not to attend the CEO candidate screening process, including the Governance Committee, CEO Candidate Screening Committee, and board meetings, to enhance the fairness of the CEO appointment procedure. Furthermore, the list of outside applicants and internal candidates, the composition of the appointment advisory group, and the results of committee/board meetings, including the CEO candidate screening process and step-by-step evaluation results, will be transparently disclosed.
KT’s board stated, "The CEO appointment process so far has been conducted fairly according to the articles of incorporation and related regulations," adding, "However, with this board’s decision, transparency, fairness, and objectivity will be further strengthened by applying an open competitive method, focusing on outside directors for evaluation, and disclosing evaluation results." The board plans to complete the KT CEO candidate appointment process before the announcement of the regular shareholders’ meeting.
In addition, as a follow-up measure to the "Governance Improvement in Response to ESG Management Trend Changes" requested by the board at the end of last December, KT decided to review the governance system that has been continuously developed and to establish a governance framework reflecting social changes.
KT will review the current status of the CEO appointment process, including new appointments and renewals, and the internal candidate development system through external consulting, and analyze excellent domestic and international cases. It will also prepare governance strengthening measures for ESG management by considering government policy improvement plans and ESG best practice guidelines.
Based on the external consulting results, after the board further reviews detailed measures, KT will conduct an opinion-gathering process targeting domestic and international shareholders to ensure objectivity in governance improvement plans. KT stated that once the final improvement plan is confirmed, it will codify it in the articles of incorporation and related regulations to enhance fairness and transparency and will continue efforts to establish a governance system recognized externally.
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