Kim Young-shub, former chief executive of information technology service provider LG CNS Co., has been named to head South Korea’s leading telecommunications company KT Corp.
The approval of his appointment at KT’s extraordinary shareholders’ meeting on Wednesday puts an end to a leadership vacuum lasting months at the country’s leading fixed-line and mobile carrier.
“I’ll do my best to build a sustainable growth foundation for the company and enhance its corporate value through KT’s network infrastructure, technology and business capabilities,” he said after his appointment was passed at the shareholders’ meeting with over 60% of all voting shares in his favor.
With his extensive corporate management experience and top-notch information technology expertise, Kim was the top pick to usher KT into a digital platform operator, KT said.
Company officials said he is unlikely to conduct drastic personnel reshuffles upon taking office as one of his priority tasks is to keep the organization stable.
His first external activity as KT’s new leader will be to give a keynote speech at Mobile 360 APC, hosted by the GSMA Association, in Seoul on Sept. 7.
At the event, he is expected to reveal his views on future communication technology and digital innovation, KT officials said.
KT is Korea's leading fixed-line and mobile carrier PROTRACTED LEADERSHIP VACUUM
KT’s top leadership post has been vacant since March, when its former Chief Executive Ku Hyeon-mo stepped down after failing to win shareholder approval for his second term.
The process of picking a new KT leader has taken on a journey of twists and turns since December.
Months before his three-year term ended, Ku vowed to run for a second term and was later named the single candidate by KT’s board of directors.
But he dropped his reelection bid in February, succumbing to growing calls for enhanced corporate governance.
His thwarted bid followed weeks of strong requests by KT’s largest shareholder, the state-run National Pension Service (NPS), and Korean President Yoon Suk Yeol for the telecom company to fix its opaque process in choosing the next CEO.
Yoon and lawmakers of the ruling People Power Party criticized the board’s choice, suggesting a second term for Ku could be likened to being “self-appointed.”
NPS, KT’s largest shareholder with a 10.35% stake, has also been calling for improved corporate governance at companies in which it has invested.
KT's new CEO Kim Young-shub holds his first meeting with KT employees SHAREHOLDER ACTIVISM
According to market tracker FnGuide, KT’s sales revenue and operating profit this year are estimated at 26.4 trillion won ($20 billion) and 1.8 trillion won, respectively.
Seo Won-joo, the state-run pension fund’s chief investment officer, said in December that the fund would strengthen its shareholder engagement, calling for enhanced transparency and fairness in CEO hiring processes at local companies, including KT and POSCO Holdings Inc., where there are no clear dominant shareholders.
In March, KT’s board nominated Yoon Kyoung-lim, a telecom industry veteran and KT’s digital transformation division chief, as its sole CEO candidate. But Yoon resigned as CEO nominee in the face of objections from the NPS and KT’s second-largest shareholder Hyundai Motor Group.
KT was a state-owned enterprise for decades before it was privatized in 2002.
Every CEO in KT’s history has faced challenges with each government transition. Former CEO Nam Joong-soo and former Chairman Lee Suk-chae succeeded in their reelections but both resigned midterm.
Former Chairman Hwang Chang-kyu was the only one to complete a second term, but he faced a prosecution investigation.
Write to Ji-Eun Jeong at jeong@hankyung.com In-Soo Nam edited this article.
