KT Supports 4,500 Employees with Subsidiary Transfers and Voluntary Retirement... Workforce Reduced by 23%

Subsidiary 'KT Netcore' Entry-Level Recruitment
Remaining Staff Assigned to Sales Positions

KT announced on the 5th that the total number of applicants for the newly established subsidiary launching next year reached 1,723.

Kim Young-seop, CEO of KT, is taking the oath as a witness at the National Assembly's Science, Technology, Information and Communication Committee's audit held on the 25th of last month. Photo by Yonhap News

As of the previous day, KT received applications from 1,483 employees wishing to transfer to KT Netcore (formerly KT OSP) and 240 employees to KT P&M.

The number of transfer applicants is less than half of KT's target. KT had planned to transfer 3,400 employees, which is 77% of the 4,400 employees previously handling related duties at KT OSP, the predecessor of KT Netcore, and 380 employees, which is 90% of the 420 employees previously responsible for the tasks at KT P&M.

On the last day of applications, the previous morning, KT CEO Kim Young-seop personally apologized via internal broadcast regarding the controversy over 'pressure on employee transfers' and asked for understanding, stating, "More than 70% of the field workforce, about 9,200 people, are aged 50 or older, and we need to consider their retirement timing," but the number of additional transfer applicants did not increase significantly.

The shortfall in personnel is planned to be filled through new hires, expansion of short-term contract workers, and subcontractors.

More than 2,800 employees applied for special voluntary retirement. KT will finalize the selected retirees through the personnel committee and retire them effective on the 8th.

Assuming all applicants for transfer to the new corporation and special voluntary retirement leave, the number of KT employees will decrease by 23% to approximately 15,000.

Meanwhile, employees who did not choose transfer or voluntary retirement are expected to be assigned to sales positions by regional headquarters in the year-end regular personnel reshuffle.