Yoon Young Park Named as Next KT CEO... Faces Test in Handling Hacking Fallout and Expanding AI Business (Comprehensive)

'Veteran KT Insider' Yoon Young Park Succeeds on Fourth Attempt
Emphasizes Commitment to Shareholders, Market, and Practical Solutions
KT Board: "Achievements in DX and B2B Were Key"

Yoon Young Park, former President of KT Enterprise Division, has been confirmed as the final candidate for KT's next CEO.

Yoon Young Park, former President of KT Enterprise Division. Provided by KT

The KT CEO Candidate Recommendation Committee (hereinafter referred to as the committee) conducted in-depth interviews on the afternoon of the 16th with three candidates: former President Park, former SK Shieldus CEO Wonpyo Hong, and former SK Communications CEO Joo Hyungchul. The committee selected former President Park as the final candidate, and the board of directors immediately approved the decision.

The committee explained that the in-depth interviews were conducted based on the CEO qualifications stipulated in the articles of association, the evaluation results of the external selection advisory panel, and the opinions of key stakeholders, all in accordance with the review criteria established by the board. The committee added that it focused on enhancing corporate value, building internal and external trust and a cooperative management environment, presenting a management vision and direction for change and innovation, and establishing a foundation for sustainable growth. During the interview, former President Park reportedly emphasized the importance of keeping promises to shareholders and the market, and presented practical solutions to current issues.

The board evaluated former President Park as a leader who has achieved results in digital transformation (DX) and business-to-business (B2B) sectors, based on his experience at KT and his management capabilities rooted in technology. Yongheon Kim, Chairman of the KT Board of Directors, stated, "Candidate Park is the right person to not only establish a foundation for sustainable growth under a new management vision, but also to lead change and innovation, quickly restore internal and external trust, and build cooperative relationships with stakeholders."

This marks former President Park's fourth attempt at the CEO position. He was among the final candidates when the current CEO Youngsub Kim was appointed, and he was also a strong contender during the selection of former CEO Koo Hyunmo. Having joined Korea Telecom in 1992, he is regarded as a B2B expert, having served as Executive Vice President and President of KT's Enterprise Business Division.

The top priority for the new KT CEO will be resolving the recent unauthorized micro-payment and personal information leak incidents. Depending on the results of the government-private joint investigation, compensation measures such as waiving all customer penalties must be finalized. In addition, the new CEO will need to address the accurate identification of the causes, establish measures to prevent recurrence, and restore the trust of affected customers. As suspicions have been raised that KT attempted to conceal or downplay the incidents, strengthening internal controls and organizational discipline is also required.

So far, there have been 368 victims of unauthorized micro-payments, with total damages amounting to approximately 240 million won. The number of subscribers whose personal information was confirmed to have been leaked by connecting to illegal micro base stations (femtocells) has reached 22,227. The new CEO's initial response is expected to determine KT's management stability and growth trajectory going forward.

Expanding new businesses, including AI, is also a major task. Previously, KT announced its goal to achieve a cumulative AI revenue of 4.6 trillion won by 2029 in partnership with Microsoft (MS). However, after failing to participate in the government-led independent AI foundation model project and facing recent hacking incidents, there are concerns that the pace of AI business execution has slowed. This highlights the importance of transforming KT into an AI-centric company. KT has announced plans to raise the proportion of AI and information technology (IT) revenue (on a standalone basis) to over 19% by 2028.

Former President Park will officially take office if he receives approval from more than 60% of the shares participating in the vote at the regular general shareholders' meeting scheduled for March next year. In that case, KT will return to having a CEO promoted from within the organization for the first time since former CEO Koo Hyunmo.