KT CEO nominee considers bowing out of candidacy: Reports

Industry

Published: 23 Mar. 2023, 18:56

KT CEO nominee considers bowing out of candidacy: Reports

KT office building in Jongno District, central Seoul [YONHAP]

KT's CEO nominee has reportedly expressed his intent to step down from the candidacy.

Yun Kyoung-lim, who was named as the final and only candidate for the top post by the KT board committee on Mar. 7, offered to resign from the candidacy during a meeting with the company’s board of directors, according to local media outlets citing multiple internal sources.

KT’s board members are also reportedly trying to dissuade Yun from bowing out.

KT did not confirm the report, saying that it is currently looking into the matter.

Yun has been under pressure as President Yoon Suk Yeol’s People Power Party (PPP) lawmakers took shots at KT for selecting candidates for the CEO position only from its own backyard “to maintain their cartel.”

Yun Kyoung-lim, KT CEO nominee and president of Group Transformation division [KT]

The National Pension Service (NPS), KT’s largest shareholder, also has been suspected of having cast an vote against Yun during the shareholder meeting, as it criticized the company, citing unfair practices, during its CEO selection process in December.

Hyundai Motor Group, the second-largest shareholder, reportedly told KT that “the large shareholders’ opinions should be considered” as well.

The NPS holds 8.32 percent of KT. Hyundai Motor owns 4.69 percent and Hyundai Mobis owns 3.1 percent.

Moreover, prosecutors recently launched an investigation into Yun and incumbent KT CEO Ku Hyeon-mo over an alleged misappropriation of corporate funds and breach of trust. KT is denying the allegation.

If Yun officially resigns from the candidacy, the ongoing uncertainties and controversies surrounding KT’s leadership will likely persist.

As the telecom giant originally planned to appoint its next CEO during a general shareholder meeting slated for Mar. 31, Yun’s possible resignation may result in a leadership vacancy.

KT reopened the CEO race twice before naming Yun as the final candidate.

The company initially selected current CEO Ku as the final candidate for the CEO post, first on Dec. 16 and again on Dec. 28, after the candidacy was reopened at Ku’s request citing “a major shareholder’s concern.”

On Dec. 28, the NPS voiced opposition against KT’s selection of Ku as the sole CEO candidate, saying that “the decision is not compliant with the basic principle that the CEO candidate appointment should take place through a transparent and fair process.”

In February, KT reopened the CEO selection process for a second time, but Ku ultimately decided not to run for the second term.

After KT shortlisted four candidates that all share a background in KT on Feb. 28, five PPP lawmakers said in a joint statement that “there are rumors buzzing inside KT that incumbent CEO Ku withdrew from the candidacy after he was put under investigation on the allegation of breach of duty, and then put forward Yun Kyoung-lim as his proxy and Shin Soo-jung as a backup in the shortlist.”

Yun is the current president of KT's group transformation division. Yun left KT twice since he first joined the company in 2006 and was appointed president in 2021.

However, small shareholders of KT established an online forum in February to take collective action with the goal of steering the final decision in favor of the KT board committee’s selection of the CEO candidate.

Small shareholders, with less than 1 percent of KT's shares with voting rights, had 57.36 percent of the stock as of December last year.

KT's share price decreased 1.31 percent to 30,050 won on Thursday.

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