KT Board Approves Restructuring Plan Affecting 5,700 Employees... Union Holds Overnight Sit-in Protest

KT Board Approves Staffing Plan for New Subsidiary
3,780 of 5,700 Employees Subject to Restructuring Retained
Union Demands Withdrawal... Headquarters Rally Scheduled for Afternoon of 16th

The KT board of directors has resolved to focus on the artificial intelligence (AI) business by employing about 3,700 of the approximately 5,700 telecommunications network management personnel targeted for restructuring in newly established subsidiaries. In response to this decision, the labor union has launched an overnight sit-in demanding its withdrawal.

Kim Young-seop, CEO of KT, attended the 'AICT Business Strategy Press Conference' held on the 10th at Novotel Ambassador Dongdaemun in Jung-gu, Seoul, where he spoke about the background of cooperation with Microsoft, future plans, and the business strategy toward becoming an 'AICT Company.' Photo by Jo Yong-jun jun21@

According to the telecommunications industry on the 15th, KT held a board meeting that morning and approved the establishment of KT OSP and KT P&M (tentative name).

KT plans to establish KT OSP and KT P&M through 100% equity cash investment and employ about 3,400 employees and about 380 personnel who are subject to company restructuring. This aims to improve management efficiency for the transition to AICT (AI+ICT).

The restructuring targets approximately 5,700 field personnel, including those in line, business opening & AS, power, and microwave. KT OSP will select 77% of the personnel who performed existing tasks, and KT P&M will select 90%. The 170 personnel in C&R and corporate CRM tasks will move to the subsidiaries KT IS and KT CS.

The plan also includes providing a lump-sum payment at the highest level in history for those who take special voluntary retirement.

Among the personnel subject to innovation, those with more than 10 years of actual service will receive 70% of KT’s base salary after transfer. Two-thirds of 30% of the base salary will be paid as a lump sum considering the remaining period until retirement.

For those with less than 10 years of actual service, the base salary level is low, so to prevent a sharp drop in living wages, 100% of the existing base salary will be maintained.

The first labor union, KT Labor Union, plans to hold a rally at 4 p.m. on the 16th at the Gwanghwamun headquarters to request the withdrawal of the KT board’s decision. A total of 288 union executives nationwide will participate.

Since the day before, the union’s central headquarters has been conducting an overnight sit-in, and from the afternoon of the day, local headquarters also plan to conduct overnight sit-ins. A KT union official said, “(At the rally on the 16th) we will request the withdrawal of the restructuring plan,” adding, “The plan itself came out without consultation with the union.” He also said, “We are communicating with the management.”

On the afternoon of the 15th, Kim Mi-young, chairperson of the KT Saenoduo, is speaking at a press conference opposing KT's restructuring held at the National Assembly Communication Hall in Yeouido. Photo by Hwang Seo-yul chestnut@

On the same day, the second labor union, KT Saenodoo, criticized in a statement, “The KT board’s forced approval of the restructuring plan is an irresponsible decision that shakes the foundation of the telecommunications industry and ignores workers’ rights,” calling it “a worrisome move that repeats the history of failed restructuring in the past.” According to a survey conducted by KT Saenodoo, 95% of the targets oppose unilateral restructuring, and 85% answered that such personnel changes do not help KT’s development. A total of 591 people participated in the survey.

A KT official said, “We are carrying out personnel structural innovation for the transition to an AICT company, and this is not a forced reduction of personnel but a reallocation of some jobs and personnel that require efficiency,” adding, “We have also considered employment stability and will promote job and personnel reallocation based on employees’ own choices, and reasonable compensation will be provided to the relevant personnel.” He added, “We will communicate internally through consultation with the union.”