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 December 16 with three candidates: Park, former SK Shieldus CEO Hong Wonpyo, and former SK Communications CEO Joo Hyungchul. Park was selected 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 qualification requirements stipulated in the articles of association, evaluations from an external advisory panel, and feedback from key stakeholders, all in accordance with the board's screening criteria. The committee specifically focused on enhancing corporate value, securing internal and external trust, establishing a collaborative management environment, presenting a management vision and direction for change and innovation, and laying the foundation for sustainable growth. During the interview, Park reportedly emphasized the importance of keeping promises to shareholders and the market, and presented practical solutions to current issues.

The board of directors evaluated Park as an individual who has achieved results in digital transformation (DX) and business-to-business (B2B) sectors, based on his experience in KT's business operations and his technology-driven management capabilities. Kim Yongheon, 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, swiftly restore internal and external trust, and build cooperative relationships with stakeholders."

This is Park's fourth attempt at the CEO position. He was included in the final pool of candidates when the current CEO Kim Youngsub was appointed, and he also competed until the last stage when former CEO Koo Hyunmo was selected. Park joined Korea Telecom in 1992 and has served as Executive Vice President and President of KT's Enterprise Business Division, earning recognition as a B2B expert.

The top priority for KT's new CEO will be addressing the recent unauthorized micro-payment and personal information leakage incidents. Depending on the results of the joint government-private investigation, compensation measures such as waiving penalties for all affected customers must be finalized. The new CEO will also need to focus on accurately identifying the root causes, developing measures to prevent recurrence, and restoring trust among affected customers. As suspicions have been raised that KT attempted to conceal or downplay the incidents, there is a need to strengthen internal controls and organizational discipline.

So far, there have been 368 victims of unauthorized micro-payments, with total damages amounting to approximately 240 million won. In addition, 22,227 subscribers have been identified as having had their personal information leaked after connecting to illegal micro base stations (femtocells). 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 key challenge. Previously, KT announced a goal of achieving cumulative AI sales of 4.6 trillion won by 2029 in partnership with Microsoft (MS). However, KT was recently excluded from the government-led independent AI foundation model project, and the recent hacking incident has reportedly slowed the company's AI business execution. This underscores the importance of transforming KT into an AI-centered company. KT has announced plans to raise the proportion of AI and information technology (IT) sales (on a standalone basis) to over 19% by 2028.

Park will officially assume the CEO position if he receives approval from more than 60% of the shares represented at the regular general shareholders' meeting scheduled for March next year. If this happens, KT will once again have a CEO promoted from within the company, following former CEO Koo Hyunmo.