Presidential Office on KT CEO Appointment Controversy: "Fair and Transparent Governance Needed"

The National Assembly Science and ICT Committee Member Criticizes "KT Next CEO Appointment as a Rent-Seeking Cartel"

The Presidential Office on the 2nd expressed the position that "governance must be conducted fairly and transparently" in relation to the criticism of the 'interest cartel' that arose during the selection process of the next KT CEO. The Presidential Office's stance is that if a moral hazard occurs, the loss ultimately falls on the people.

A Presidential Office official said at a briefing at the Yongsan Presidential Office in the afternoon, "The government maintains a policy stance of a 'market economy centered on enterprises,' but for companies that have a significant impact on people's livelihoods and have no clear owners, especially large corporations, governance is an important aspect," and made these remarks.

Earlier, the KT Governance Committee narrowed down the candidates for the next CEO from 33 to 4 on the 28th of last month. The candidates are Park Yoon-young, former head of KT's Corporate Division; Shin Soo-jung, head of KT's Enterprise Division; Yoon Kyung-rim, head of KT Group Transformation Division; and Lim Heon-moon, former head of KT Mass Division. All four have experience working at KT or are currently employed there.

The controversy arose when Yoon Jin-sik, former Minister of Industry and Resources from President Yoon Seok-yeol's presidential campaign, and Kim Ki-yeol, former KTF vice president, who were considered strong candidates, were eliminated. Ruling party figures such as Kwon Eun-hee (former head of KT Networks Business Division), Kim Sung-tae (advisor to the Presidential Digital Platform Government Committee), and Kim Jong-hoon, former member of the National Assembly and former head of the Ministry of Foreign Affairs and Trade's Trade Negotiation Headquarters, also failed to pass the screening. In response, members of the People Power Party from the National Assembly's Science, Technology, Information and Broadcasting Committee held a press conference criticizing it as a "league of their own."

In response, a Presidential Office official added, "If that (fair and transparent governance) does not happen, moral hazard will occur within the organization, and the loss will inevitably be borne by our people." President Yoon Seok-yeol also emphasized the need to advance governance of privatized public enterprises and major financial holding companies, saying at the Financial Services Commission briefing held at the Blue House State Guest House in January, "Ownerless companies must establish transparent governance."

Meanwhile, regarding the criticism that the U.S. government's disclosure of semiconductor subsidy payment criteria might be unfavorable to companies, a Presidential Office official explained, "Rather than being the U.S. government's final position, it seems to be in the process of organizing its stance, and companies, the government, and the local embassy are preparing to respond with full effort."