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KT&G CEO Baek Bok-in turns down reappointment

Published: 11 Jan. 2024, 18:33 Updated: 11 Jan. 2024, 18:55

SEO JI-EUN
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KT&G CEO Baek Bok-in speaks in a town hall meeting with employees on Sept. 13, 2023. [KT&G]

Baek Bok-in, KT&G's longest-serving CEO, decided not to pursue a fourth term, a move aligned with the decisions made by the heads of other previously state-run companies like KT and Posco.

Baek conveyed his decision to the board on Tuesday, citing a “crucial juncture requiring fresh leadership for global advancement and transformative changes within the company.”

Want to be KT&G's next CEO? Here's how to apply.

The KT&G board concluded its open recruitment of external candidates for the CEO position and finalized a longlist of 24 candidates on Thursday.

Baek took his role in October 2015 post-privatization and was reappointed in 2018 and 2021. Recent challenges, including a dip in operating profit and a decline in stock prices, have driven activist funds to protest his reappointment.

KT&G's appointment process involves three steps: assessment by a governance committee consisting of outside board members, a committee recommendation, and approval at a shareholders' meeting.

However, the company has been criticized for involving outside directors appointed who were during the current CEO's term, raising concerns about the transparency of the process.

Baek's resignation echoes the past: The heads of the telecom company KT and steel company Posco both stepped down due to opposition from their companies' largest shareholder, the National Pension Service.

BY SEO JI-EUN [[email protected]]