New KT CEO rules out large-scale reshuffling this year

KT’s new CEO Kim Young-shub said there will be “no large-scale restructuring this year,” breaking the tradition of a massive reshuffle that followed whenever the mobile carrier appointed a new chief from outside the company.

KT CEO Kim Young-shub answers questions at a press event held at Le Meridien Seoul in central Seoul on Thursday. [KT]

KT’s new CEO Kim Young-shub said there will be “no large-scale restructuring this year,” breaking the tradition of a massive reshuffle that followed whenever the mobile carrier appointed a new chief from outside the company.

Kim, former CEO of LG CNS, was appointed to the new position on Aug. 30.

“I am not thinking of a large-scale reshuffle, contrary to my predecessors,” Kim said on Thursday at a press event at Le Meridien Seoul, in central Seoul. “Personnel appointments require prudence, especially at KT because last year’s appointments could not be made under the circumstances. Given the leadership vacuum, I would like to make swift hiring decisions[…] There will be replacements, new recruits and dismissals, but I am not thinking of a massive reshuffle at a scale that would remove thousands of employees.”

This year’s personnel allocation will be primarily focused on reassigning KT employees to appropriate positions, but Kim is open to “external recruits if it’s a business the company has not tried yet.”

Kim emphasized that KT’s vision lies in transforming the telecom company into a digital platform business, bolstering its efforts in AI, big data and cloud services.

“The value of KT will depend on creating distinctive services based on how we, originally a telecom company, revamp our business structure with information technology. Once we can combine them together, there will be infinite possibilities for expansion into new businesses.”

Kim did not outline specific growth figures for his management guidelines, saying that he will focus on strengthening the company’s fundamental values.

“I will not dwell on exterior revenue and profits,” he said. “In the short term, company shares and values are irrelevant to quarterly earnings.

“Companies such as Coupang and Amazon, even though they recorded hundreds of billions in losses, managed to boost their company shares because shareholders believed in their future potential,” he said. “KT looks to such precedents, to build up its future growth factors which will be the base of shareholder returns.”

Lastly, Kim promised that the so-called "cartel culture" of the company, for which KT has received backlash, will be eliminated under his management.

“I am aware that there are rumors within the company that specific people are part of cartels,” Kim said. “They will soon be eliminated. I am rooting for ‘one KT,’ a company that prioritizes tangible achievements where employees work as one to attain their goals.”

BY LEE JAE-LIM [lee.jaelim@joongang.co.kr]