Digital transformation expert nominated as next KT CEO

KT CEO nominee Yun Kyung-lim / Courtesy of KT

By Park Jae-hyuk

KT's board of directors unanimously recommended Yun Kyung-lim, head of the group transformation division, as the final candidate to replace outgoing CEO Ku Hyeon-mo, the telecommunications firm said Tuesday.

The decision was made after in-depth interviews of four shortlisted candidates, all of whom are former and incumbent KT executives.

“Based on his expertise in digital transformation, Yun presented the future vision of KT's growth into a global digital platform company, amid the rapidly changing market environment,” KT board chairman Kang Chung-gu said. “The board of directors regards him as the right person to enhance shareholder value.”

Kang added that KT will accelerate efforts to improve its governance structure, in order to dispel worries among the government and lawmakers over the corporate governance of companies with complex ownership structures.

The CEO nominee is expected face a bumpy road as the head of KT for the next three years, due to the ruling People Power Party's (PPP) negative view of him. Yun is considered to be the closest aide of the incumbent CEO, who was virtually forced by the government to step down.

Earlier this month, Rep. Park Sung-joong of the PPP leveled criticism against KT's decision to exclude outsiders from the shortlist. The lawmakers described Yun as “Ku's avatar,” raising suspicions that Yun, who was a Hyundai Motor executive vice president, was allowed to join KT in September 2021, after helping the incumbent CEO's older brother sell his money-losing startup, Airplug, to the nation's largest carmaker.

If the decision by KT's board fails to win approval from the company's largest shareholder, the National Pension Service (NPS), during the general meeting of shareholders later this month, the telecommunications firm will not be able to avoid a leadership vacuum.

One of KT's labor unions, which had opposed Ku's reappointment, also issued a statement criticizing the board's recommendation of Yun. The union said in a statement that KT's board of directors increased uncertainties surrounding the company's future.

The CEO nominee, however, is still able to win support from KT's minority shareholders, who are planning to resist the government's pressure on the telecommunication firm, which was privatized two decades ago.

KT's foreign shareholders, who collectively own about 40 percent of the company's outstanding shares, are also expected to exercise strong influence over the appointment of the new CEO.