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Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] KT’s New Union has called for the full resignation of the company’s board of directors, denouncing it as a “hub of vested-interest cartels” and demanding sweeping governance reform.
In a statement released on January 21, the union said KT is facing a serious crisis, citing the loss of 310,000 customers during a contract-penalty waiver period, while the board has failed to exercise proper oversight and instead stands at the center of multiple alleged irregularities. The union described the situation as a case of “deepening moral hazard.”
The union singled out outside director Lee Seung-hoon, alleging that he sought to influence internal appointments and pressured the company to invest in German satellite communications firm Rivada. It said the allegations were serious enough to trigger an internal compliance investigation, which reportedly also involved senior executives, including CEO Kim Young-seop.
According to the union, concerns have been raised that the compliance findings were not formally presented to the board, with allegations that agenda items were withdrawn to avoid official records. Claims of heated exchanges during board discussions were also cited.
The union further pointed to past controversies involving former directors, including retroactive dismissal over qualification issues and conflicts of interest, arguing that ethical lapses have repeatedly surfaced across the board. It also criticized executives’ overseas trips during periods marked by hacking cover-up allegations and mass customer defections.
The union outlined four key demands:
the immediate resignation of Lee Seung-hoon and full disclosure of the allegations;
transparency from management and cooperation with any legal proceedings;
the collective resignation of the current board and the establishment of a fair and transparent process for appointing outside directors; and
active shareholder engagement by the National Pension Service under its stewardship code.
“The board has failed and management has stood by,” the union said, warning it would pursue all available measures if the allegations are ignored.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
