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Photo courtesy of Yonhap News |
[Alpha Biz= Paul Lee] KT Corp.’s board is set to begin the process of selecting new outside directors on Friday, as calls grow from major shareholders and labor unions for accountability over governance controversies involving conflicts of interest and board neutrality.
According to industry sources, KT will hold a preliminary briefing on August 9 involving all outside directors and internal directors, followed by a formal board meeting on August 10 to finalize recommendations for outside director appointments.
The discussions are expected to revisit allegations that an outside director, identified as A, sought to broker investments and employment favors involving a satellite affiliate—an issue that previously derailed board proceedings amid heated exchanges. At the same time, KT plans to convene its Outside Director Nomination Committee to review a shortlist of new candidates, narrowed to three times the number of vacancies across fields such as law and accounting.
Another agenda item likely to be raised is whether to scrap a controversial rule requiring board approval for organizational restructuring and executive appointments by the chief executive officer. The provision has been criticized by the National Pension Service and KT’s labor union as an overreach of board authority.
KT’s board currently consists of seven outside directors and two inside directors. Three outside directors—Ahn Young-kyun, Yoon Jong-soo, and Choi Yang-hee—are reaching the end of their terms, while the resignation of former outside director Cho Seung-ah last December leaves a total of four vacancies to be filled.
The stance of the National Pension Service, a key shareholder, is emerging as a major variable. The fund is reportedly opposed to reappointing outside directors who supported the rule mandating board approval for CEO-led personnel and organizational changes, casting uncertainty over the reappointment prospects of Yoon and Choi.
Other outside directors also face pressure, having been criticized for “self-reappointment” during last year’s renewal process. The controversy was amplified by revelations that Cho, who later resigned amid eligibility concerns, had exercised voting rights on the nomination committee during that process.
Market watchers say the outcome of the upcoming board meetings and the extent of outside director turnover will be closely watched as a barometer of whether KT can address long-standing governance concerns ahead of its next shareholders’ meeting.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
