KT's CEO proposes a holding-company-like structure

Tech

Published: 31 Mar. 2022, 18:29

KT's CEO proposes a holding-company-like structure

KT CEO Ku Hyeon-mo strikes the gavel on Thursday during the annual general meeting. [KT]

KT's CEO has proposed a change in corporate structure that would consolidate disparate but related companies under one entity.

KT CEO Ku Hyeon-mo announced the plan during the company's annual general meeting, but noted that he was not proposing the formation of an actual holding company. He is instead proposing a restructuring that would bring various business units directly under KT.

He argues that this would improve shareholder value.

"I can say that KT is interested in transforming into a holding entity-like structure, although it doesn't necessarily mean to building a new holdings unit," Ku said.

By way of example, Olleh TV, Seezn, Skylife and Storywiz were all placed under KT Studio Genie.

As for planned initial public offerings of related companies, Ku said that "Bookclub Millie and K Bank are preparing to take themselves public this year."

Bookclub Millie is the top e-book subscription service provider in Korea, and KT is the largest shareholder. K Bank, Korea's first internet-only bank, is 34 percent owned by BC Card, a subsidiary of KT.

Co-CEO Park Jong-ook resigned as the co-CEO before the meeting, leaving Ku the sole chief of the company.

BY PARK EUN-JEE [park.eunjee@joongang.co.kr]