[Exclusive] Kang Guyoung, KAI CEO, Tenders Resignation on First Day of New Administration

Term Set to End in September, but Resigns on Inauguration Day of New Administration
Tells Export-Import Bank: "Will Serve Until Successor is Appointed"

Kang Guyoung, CEO of Korea Aerospace Industries (KAI), tendered his resignation on the day of Lee Jaemyung's inauguration as the 21st President.

Yonhap News Agency

According to government officials on June 4, Kang visited the Export-Import Bank of Korea that morning to submit his resignation and conveyed his intention to serve out his term until a successor is appointed. The Export-Import Bank of Korea is the largest shareholder of KAI.

Kang was appointed in October 2022 for a three-year term set to end in September this year, but he is understood to have offered his resignation to take responsibility for his performance during his tenure.

There is speculation that a figure from Lee Jaemyung's presidential campaign may be appointed as the next CEO. Some have criticized that parachute appointments at KAI have slowed the development of the aviation industry. In fact, shortly after taking office, Kang carried out a large-scale executive reshuffle, with around 20 executives leaving the company within three months. The resulting vacancies were filled with former Air Force personnel and individuals from organizations where Kang had previously worked. One of the newly hired Air Force veterans was investigated by the local labor office over allegations of workplace abuse. After Kang became CEO, KAI received a notably low score in a comprehensive defense industry technology protection assessment. There was also an incident where an Indonesian employee was caught leaking data using a portable storage device (USB).

The market expects that even under the Lee Jaemyung administration, there will continue to be opposition to the privatization of KAI. Former President Moon Jaein, during his candidacy, visited Sacheon in South Gyeongsang Province, where KAI's production line is located, and clearly expressed his opposition to privatization.

Regarding Kang's resignation, a government official stated, "We respect his responsible decision as the head of KAI," and added, "We ask that he continue to do his utmost to ensure ongoing management stability and secure future competitiveness."