KT’s board of directors approved the reappointment of CEO Hwang Chang-gyu on Tuesday, allowing Hwang another three years to lead the second-largest mobile carrier in South Korea.
According to the company, the board held a meeting Tuesday morning to discuss the CEO’s second term and overhaul of corporate governance.
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KT CEO Hwang Chang-gyu (Yonhap) |
The board’s endorsement of Hwang needs final approval from a shareholders meeting slated for March.
With his second term almost ready, Hwang is expected to resume his external activities as the KT leader.
He is scheduled to deliver a keynote speech at the Mobile World Congress in February, introducing KT’s new businesses for the next three years.
Hwang is expected to focus the company’s efforts on commercialization of the fifth-generation telecommunication network as the first in the country.
Under Hwang, KT has been increasing its international presence by proposing its 5G pilot services to organizations such as the International Telecommunication Union. Five services developed by KT for the PyeongChang 2018 Winter Olympic Games were adopted as a draft recommendation for international standardization by the ITU on Monday.
Among the challenges facing Hwang is to improve the company’s governance structure.
Having the National Pension Service as the largest shareholder, KT has no individual owner.
On Tuesday, NPS increased its stake in KT from 7.33 percent to 10.34 percent by purchasing 7.8 million shares, according to a regulatory filing.
The formerly landline service provider under the government was privatized in May 2002. However, speculations have persisted that KT is still vulnerable to political clout. The carrier is one of the major businesses involved in the ongoing Choi Soon-sil scandal.
Last Thursday, the company’s committee in charge of recommending the next CEO demanded Hwang establish independent corporate governance if he is given a second term, according to industry insiders.
“Selling some stake in the company to private market players is considered as a measure for KT to be less affected by political influence,” an industrial source told The Korea Herald. “Some also say that KT’s board should be filled less with outside directors and more with insiders.”
The 64-year-old former Samsung man came to the helm of KT in 2014 and has been recognized for his achievements, including earnings growth and corporate restructuring over the last three years.
Last week, global credit rating agency Moody’s raised KT’s credit rating level from Baa1 to A3.
By Song Su-hyun (song@herapdcorp.com)
