KT CEO Koo Hyun-mo, the Background Behind His Sudden Decision to Decline Reappointment

Governance Uncertainty Raises Concerns Over Shareholder Value Damage
Industry Says "Giving Up Due to Political Pressure and Prosecutor Investigation"

[Asia Economy Reporter Lim Hye-seon] KT CEO Koo Hyun-mo has decided not to seek reappointment.

On the 23rd, CEO Koo informed the board of directors of his intention to withdraw from the next CEO candidate pool. The board accepted Koo's decision and decided to exclude him from the internal candidates for the next CEO. Koo Hyun-mo plans to conclude his tenure as KT CEO after the regular shareholders' meeting in March.

Earlier, the board had nullified the resolution confirming Koo Hyun-mo as the final candidate for the next CEO and returned to square one. In response to concerns raised by the National Pension Service and political circles regarding transparency and fairness, the board decided to reselect candidates through an "open competition" process. Koo consistently expressed his intention to seek reappointment. Previously, he stated, "I hope to enhance transparency and objectivity through open competition."

Koo reportedly made his decision believing that prolonged uncertainty in governance could damage shareholder value. However, the industry views his decision as a result of intense political pressure and investigations by prosecutors. Recently, the police and prosecution have been gathering information regarding allegations that arose during Koo's tenure. Koo is currently undergoing a formal trial after appealing a summary order imposing a fine of 15 million won for violating the Political Funds Act and embezzlement related to "split donations" to lawmakers. Previously, former chairmen Nam Jung-soo and Lee Seok-chae were reappointed but resigned in disgrace after facing legal action for personal misconduct.

The board accepted Koo's decision and decided to exclude him from the internal candidate pool for the next CEO. The ongoing process for selecting the next CEO will continue. The board will conduct a verification process for a total of 33 candidates excluding Koo Hyun-mo.