KT restarts CEO selection process after controversy

KT CEO Ku Hyeon-mo [KT]

KT decided to reopen the candidacy for the CEO post in a board meeting Thursday, restarting the candidate review process from scratch.

The decision came after the National Pension Service (NPS), the largest shareholder of KT, voiced opposition to the telecom company’s previous decision to select incumbent CEO Ku Hyeon-mo as the final and only candidate for the post.

In December, NPS Chief Investment Officer (CIO) Seo Won-joo said that reselecting Ku was "not compliant with the basic principle that CEO candidate appointments should take place through a transparent and fair process.”

President Yoon Suk Yeol also said on Jan. 30 that “a stewardship code should be adopted at companies with dispersed ownership.”

A stewardship code refers to a set of guidelines promoting active shareholder engagement to ensure responsible corporate management.

Also on Thursday, KT reported 1.39 trillion won ($1.3 billion) in net profit for 2022 in a regulatory filing, a 4.9 percent on-year decrease.

The figure beat analyst expectations of 1.30 trillion won compiled by FnGuide.

Operating profit came in at 1.69 trillion won, up 1.1 percent on year.

Sales hit a record 25.65 trillion won, up 3 percent.

The telecom company did not hold its regular quarterly conference call with investors and analysts Thursday amid controversy surrounding the CEO candidacy.

BY SHIN HA-NEE [shin.hanee@joongang.co.kr]