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| KT CEO nominee Yun Kyung-lim |
By Park Jae-hyuk
KT's group transformation division head Yun Kyung-lim, who was nominated as the telecommunication firm's next CEO on March 7, indicated his intention to give up the company leadership for the next three years, during Wednesday's breakfast meeting with the board members, according to industry officials, Thursday.
The board members reportedly accepted Yun's resignation on Thursday morning, as he did not change his mind even after being told to endure the difficulties he was facing. The nominee is said to have told the board members that KT will be damaged if he resists the pressure.
A KT spokesperson said on Thursday afternoon that it is uncertain whether Yun has really offered to resign. One of KT's multiple unions, which opposed incumbent CEO Ku Hyeon-mo's reappointment, as well as Yun's appointment, leveled criticism at the nominee's latest decision, saying Yun and the board of directors brought serious turmoil to the company.
KT is supposed to take a vote on Yun's appointment as the new CEO, during the general meeting of shareholders on March 31. The company is therefore unable to avoid a leadership vacuum if the nominee's resignation turns out to be true.
Yun's resignation is attributed to intensifying pressure from the government and the ruling party's lawmakers. They have raised suspicions that the nominee, a Hyundai Motor executive vice president, was allowed to join KT in September 2021 after he helped the incumbent KT CEO's twin brother sell his money-losing startup Airplug to the nation's largest carmaker.
Earlier this year, the incumbent KT CEO was virtually forced by the government to step down. His attempt to serve another term had brought on criticism from KT's largest shareholder, the National Pension Service (NPS). In addition, the prosecutors began to investigate both Ku and Yun earlier this month, after a civic group alleged malpractice.
"Even if Yun is appointed as the CEO, it will be difficult for him to manage the company smoothly, under the government's control over the nation's telecommunication industry," an industry official said.
Although Yun gained support from KT's minority shareholders, as well as the proxy advisers here and overseas, which advised KT shareholders to vote for him, he is expected not to get a vote from the NPS.
Hyundai Motor Group, the telecommunication firm's second-largest shareholder, also asked KT to take into account the opinions of its major shareholders in its CEO selection process. Its request has been interpreted as its opposition to Yun.
Shinhan Bank, the third largest shareholder of KT, has remained neutral on this issue, as the bank has promised not to intervene in KT management issues when they swapped each other's shares.
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