Kim Young-seop, KT CEO, on Subsidiary Transfer Pressure Controversy: "I Feel Apologetic"

CEO Kim Holds Special Interview on the 4th
KT Union States "Stop Coercion and Pressure"
"Failure to Innovate Will Lead to a Serious Crisis"

Kim Young-seop, CEO of KT, apologized on the 4th regarding the controversy over a senior executive pressuring employees to transfer during the establishment of a network operation subsidiary, saying, "As the CEO, I sincerely apologize for the recent unfortunate incident that has been circulating."

Kim Young-seop, CEO of KT. Photo by Jo Yong-jun

On the same day, Kim made this statement during a special CEO talk broadcasted internally, explaining the background and future plans for the establishment of the technology-specialized subsidiaries KT OSP and KT P&M.

Previously, Ahn Chang-yong, Head of KT Enterprise Division (Vice President), faced backlash for remarks made at an orientation session for employees subject to transfer, saying, "As time passes, there will be feelings of humiliation and self-disgust, and it will be very difficult." Ahn also apologized during the special talk, stating, "There was a misunderstanding during the explanation."

After the remarks became known, on the 1st, the KT Labor Union, the largest union, issued a statement demanding the cessation of coercion and pressure on union members.

In the talk, CEO Kim said, "While big tech companies are boldly pursuing innovative growth, domestic and international telecom companies have experienced a prolonged period of stagnation for over a decade. If we fail to innovate, we risk falling into a serious crisis." He added, "To enable rational restructuring, we have prepared this workforce structural innovation, and the most urgent task is the innovation of the 13,000-strong field organization."

He also mentioned, "More than 70% of the field workforce, about 9,200 people, are aged 50 or older," and "There has been a significant gap between the market wage system and KT’s system in areas such as line management, which has prevented us from hiring new employees."

Regarding the controversy over forced restructuring such as pressuring transfers to subsidiaries, Kim explained, "This is not the restructuring method of the past but a rational adjustment, creating a structure where employees continue to work in newly established technology-specialized companies, thereby maintaining stability in a reasonable way."

He promised that employees who choose the subsidiaries will not suffer any economic loss in terms of salaries and other benefits they can receive during their remaining period until retirement.

KT is accepting transfer and voluntary retirement applications until today. The minority union, KT Saenojoh, issued a statement urging, "A full investigation into cases where Ahn and others pressured transfers should be conducted, disciplinary actions taken, and clear plans for assigning work and training for employees who choose to remain should be established."