 |
Kim Jong-chul, former head of the Unmanned Systems Program Division at the Defense Acquisition Program Administration (Photo = DAPA) |
[Alpha Biz= Reporter Lee Joonhyun] SACHEON, South Korea — Kim Jong-chul, the nominee for CEO of Korea Aerospace Industries (KAI) and former official at the Defense Acquisition Program Administration (DAPA), has ignited a firestorm by using the title of "CEO" on official government-level invitations before his legal appointment.
According to investigations by Alpha Biz on the 12th, KAI is scheduled to hold a rollout ceremony for the first mass-produced unit of the KF-21 Boramae fighter jet on March 26. Invitations sent to industry leaders and officials were signed: "Kim Jong-chul, CEO of Korea Aerospace Industries, Ltd." The invitation requested RSVPs by the 13th, despite the fact that Kim’s status as CEO has not yet been formalized through the legally required shareholder and board processes.
Under South Korean commercial law and KAI's internal regulations, the appointment of a CEO follows a strict protocol:
Nomination: Completed on Feb 27 by the Director Candidate Recommendation Committee.
Extraordinary General Meeting (EGM): Scheduled for March 18.
Board Resolution: Finalizes the CEO appointment following the EGM.
By using the title on an invitation issued before March 18, Kim effectively bypassed the voting rights of shareholders, including the Export-Import Bank of Korea (KEXIM), KAI’s largest shareholder with a 26.41% stake.
"A Simple Mistake" vs. "Procedural Negligence"
KAI officials have dismissed the incident as a clerical error. "During the process of creating multiple versions of the invitation, a printed version was mistakenly sent out," a KAI representative explained, noting that the mobile versions were issued correctly without the CEO title.
However, legal experts and labor unions are not convinced. "For a company like KAI, where a state-run bank is the largest shareholder, claiming the CEO title before the shareholder meeting is highly irregular," said Jeon Dae-gyu, an adjunct professor at Ewha Womans University Law School. "It invites unnecessary suspicion that the formal appointment process is being treated as a mere formality."
Rising Tensions with Labor Union
The KAI labor union, which has already been protesting Kim’s nomination over concerns regarding "procedural transparency," is expected to use this incident as further evidence of an illegitimate appointment process. With President Lee Jae-myung potentially attending the KF-21 ceremony on the 26th, the stakes for Kim’s formal and ethical standing are higher than ever.
Alphabiz 이준현 기자(wtcloud83@alphabiz.co.kr)
