Withdrew Reappointment Bid Amid Political Pressure
"Not the Right Path"... Criticizes KT Board of Directors
Koo Hyunmo, former CEO of KT and one of the candidates mentioned for the next CEO position at KT, announced on November 14 that he will not participate in the upcoming CEO selection process. Recently, KT began the process of recruiting a new CEO as the term of current CEO Kim Youngsub is set to expire in March next year.
On this day, Koo released a statement saying, "The core of governance is not the number or authority of outside directors, but a healthy structure that nurtures competent CEO candidates and allows for their fair selection." He added that it would not be appropriate to undergo another review under a distorted governance structure.
Koo served as KT's CEO from 2020 to 2023. He sought reappointment but withdrew due to political pressure during the Yoon Suk-yeol administration. At that time, Koo criticized the CEO appointment process at KT, stating, "What happened at KT three years ago was unprecedented in the history of Korean corporations and should never occur again."
He explained, "A CEO candidate who was recommended according to the articles of incorporation was forced to resign due to outside intervention, and even outside directors were made to step down, resulting in an abnormal management vacuum with neither a CEO nor a board of directors for as long as six months."
Koo also criticized the legitimacy of the KT board of directors. He asserted, "At the beginning of this year, during the general shareholders' meeting, all four directors whose terms were expiring next year were recommended and reappointed, and new personnel regulations that do not align with the articles of incorporation were established. Such incomprehensible decisions have continued."
He continued, "If I must be reviewed again by a board of directors that is the result of KT's distorted governance, as someone who directly experienced the events of three years ago, I do not believe this is the right path." He explained this as the reason for not participating in the selection process.
He added, "Those who do not know KT's history, culture, or the role and responsibility of a national key telecommunications provider should refrain from participating." He emphasized, "While I understand the importance of AI better than anyone, being an AI expert alone does not qualify someone to lead KT. Before being an AI company, KT is responsible for the national telecommunications infrastructure."
Previously, CEO Kim Youngsub decided not to seek another term, taking responsibility for a hacking incident. On November 4, the KT CEO Candidate Recommendation Committee officially began the process to appoint the next CEO. The committee is composed of all eight outside directors of KT. The public application period will close at 6 p.m. on November 16.
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