'34 to 1' KT 'Next CEO Race' Begins... Half Are Ruling Party Figures

When Koo Hyun-mo was appointed KT CEO in 2019, the ratio was 37 to 1
During former Chairman Hwang Chang-gyu's term in 2013, it was 45 to 1
KT reports sales of 25.6 trillion won and operating profit of 1.6901 trillion won

[Asia Economy Reporter Lim Hye-seon] 34 to 1. This is the competition ratio for the 16th KT CEO. Many people raise their hands every time a KT CEO is appointed. When Koo Hyun-mo was appointed KT CEO in 2019, the ratio was 37 to 1, and when former Chairman Hwang Chang-gyu was appointed in 2013, it was 45 to 1. The criteria for screening CEO candidates include qualities and abilities as a top executive, as well as professional knowledge and experience in the information and communications sector. However, in reality, behind-the-scenes competition and schemes often run rampant. Not only internal stakeholders but also political connections and close aides of the president are involved.

Half of the Candidates Are from the Ruling Party

Eighteen external candidates applied for the public recruitment for KT's next CEO. Including 16 internal candidates, a total of 34 people are competing. Among them, eight are former ruling party members or have a ruling party inclination. Former ruling party lawmakers include Kwon Eun-hee, former head of KT Networks' Business Division; Kim Jong-hoon, former head of the Ministry of Foreign Affairs and Trade's Trade Negotiation Headquarters; Kim Sung-tae, advisory member of the Presidential Digital Platform Government Committee; and Yoon Jin-sik, former Minister of Industry and Resources. Former KTF Vice President Kim Ki-yeol was active in President Yoon Seok-yeol's campaign. Hanyang University adjunct professor Kim Chang-hoon participated in Hong Joon-pyo's campaign during last year's People Power Party presidential primary. Park Jong-jin, vice chairman of IHQ, who ran as a candidate for the United Future Party in the 21st general election, and Yoon Jong-rok, former head of the Information and Communications Industry Promotion Agency and former 2nd Vice Minister of the Ministry of Science, ICT and Future Planning during the Park Geun-hye administration, are also among the candidates.

From KT, former marketing division head Nam Kyu-taek, former corporate division head Park Yoon-young, former vice president Song Jeong-hee, former president Lim Heon-moon, former head of the General Technology Institute and former POSCO ICT president Choi Doo-hwan, former management planning division head Han Hoon, former Skylife management headquarters head Kim Jin-hong, and former chairman of the Group Hope Sharing Foundation Park Heon-yong have thrown their hats in the ring. External candidates include former Samsung Electronics vice president Choi Bang-seop and Hong Seong-ran, anti-money laundering expert at KDB Industrial Bank, who applied through public recruitment. Among the external candidates, there are two in their 50s, fourteen in their 60s, and two in their 70s.

What Makes the KT CEO Position So Important?

The KT CEO is the chief executive officer of a telecommunications company with annual sales and operating profits exceeding 25.6 trillion won and 1.6901 trillion won, respectively. KT has 50 affiliates and 58,000 employees. Although it is a company without an 'owner,' once appointed CEO, one holds internal influence equivalent to that of an 'owner.' The KT CEO holds personnel authority over 58,000 employees. Since Korea is a 'telecommunications powerhouse,' the CEO can also exert influence in the global telecommunications market. This is why the KT CEO position is called 'a position that is hard to ascend but easy to fall from' both inside and outside KT.

Some candidates even try again for the 'KT CEO candidacy.' For example, former POSCO ICT president Choi Doo-hwan and former KT corporate division head Park Yoon-young have thrown their hats in the ring again after the 15th term. Both were among the nine candidates selected for the next chairman candidate screening from a total of 37 candidates who applied in 2019.

Will It End with One Internal Leader?

Since KT was privatized in 2002, the organization has been shaken every time the government changed due to the 'CEO appointment' issue. External influence has never stopped during CEO selection. The first CEO after privatization, Lee Yong-kyung, sought reappointment but was dismissed without reason. Nam Joong-soo, appointed during the Roh Moo-hyun administration, resigned as KT president after being arrested during the Lee Myung-bak administration. Chairman Lee Seok-chae succeeded in reappointment but voluntarily resigned a week after the prosecution investigation began during the Park Geun-hye administration. Chairman Hwang Chang-gyu was the only one to succeed in reappointment, but he also faced difficulties due to external pressure. To block external influence, Chairman Hwang amended the articles of association before stepping down. Internal candidates were defined as those who have worked at the company and its affiliates for more than two years and hold a position of vice president or higher according to the company's rank standards. The person who rose through this process is the current KT CEO Koo Hyun-mo. He is the first internal CEO after privatization.

KT has evolved into a digital platform company expanding its business areas beyond telecommunications to artificial intelligence (AI), cloud, and content. Accordingly, the KT CEO requires management expertise that goes beyond organizational management to understand global digital trends, spread digital transformation (DX) to other industries and globally, and enhance corporate value. If a non-expert unfamiliar with corporate management becomes a candidate, KT's corporate value could regress significantly.

Following the public disclosure of internal and external CEO candidates, KT plans to transparently disclose the list of the selection advisory panel and the results of each screening stage.