KT chairman demands fundamental changes

KT Chairman Hwang Chang-gyu, in a message to employees yesterday, called for a fundamental change and for innovation after KT’s recent information leak scandal.

On Friday, Hwang bowed his head and publicly apologized for the leak of personal information of 12 about million customers when the company’s website was hacked, saying he would make swift, innovative changes.

In the email sent by the chairman to KT employees yesterday, he said there is no excuse for another massive hacking after information leaks in March and July 2012. He called the leak a disgrace for the public IT professional company.

“Although we plan to implement fundamental countermeasures to improve the situation, I am incredibly disappointed that we have not been able to keep the most basic promise to our customers. We can no longer back out,” said Hwang.

He also confirmed again that he would proceed with countermeasures to prevent any secondary damage and improve the situation in the shortest amount of time as possible.

“In the current situation, just one more mistake would mean that KT has no future,” said Hwang.

“It will not be tolerated to shirk responsibility or to be all talk and no action and idle away considering it as a customary practice.

“Unless we spontaneously look out for the ways to improve and implement them, these incidents will be repeated. We have to fundamentally change the attitude and approach.”

Hwang also emphasized once again the new management policy he introduced as he was inaugurated of making KT No. 1.

“Let’s make KT the No. 1 company with the pride and confidence as members of KT,” he said.

Hwang has made aggressive changes since his first day at work and promised more transparent management, but, just weeks after he took office, the chairman faced unexpected problems, including the massive loan swindle last month.

An employee of KT ENS embezzled 280 billion won ($262.5 million) in loans issued to a company that was set up by the KT unit’s contractors.

And just few weeks after the loan scandal, the fact that KT’s customer website had been hacked was discovered.

It is expected that the new chairman will take on what are considered to be the company’s chronic problems such as dependence on temporary solutions, lack of checks and balances among managers and the absence of customer-oriented attitudes, among other things.

BY kim jung-yoon [kjy@joongang.co.kr]