Kim Young-shub, KT CEO and president, said at the board meeting on the 4th that he would not seek another term. The KT board began discussions on the process to recruit the next CEO. At the same time, it passed an agenda item to offer free USIM card replacements for all customers in the wake of the unauthorized small payments and hacking incident that surfaced in September.
On this day, Kim was said to have told the board that, taking responsibility for the unauthorized small payments and the hacking incident, he would serve only the current term. Kim's term runs until the regular shareholders meeting in Mar. next year.
Until the hacking incident broke, Kim had been seen as likely to win another term. However, pressure to resign mounted, led by the ruling party. In the end, at the National Assembly's Science, ICT, Broadcasting and Communications Committee audit in Oct., he said, "As the chief executive officer (CEO) who bears overall responsibility for management, it is only right to take appropriate responsibility for the personal information leak and the damage from small payments caused by this KT incident."
The KT Director Candidate Recommendation Committee said it officially launched the process to appoint the next CEO, starting with discussions on how to form the pool of CEO candidates at the board meeting that day, and plans to finalize the selection of one CEO candidate within the year. The KT Director Candidate Recommendation Committee consists of all eight KT outside directors. The committee plans to form the CEO candidate pool through: △ recommendations from external professional institutions △ open recruitment △ shareholder recommendations (shareholders who have held at least 0.5% of total shares for at least six months) △ internal candidates under relevant regulations.
Open recruitment will run from 9 a.m. on the 5th of this month to 6 p.m. on the 16th. Details can be found in the notices on KT's website. The Director Candidate Recommendation Committee said, "Through a fair and transparent process, we will contribute to KT's sustainable growth and enhancement of shareholder value."
Immediately after the agenda item for free USIM replacements passed at the board meeting, KT said, "We once again apologize for the recent damage from unauthorized small payments and the personal information leak, and to address security concerns, from the 5th of this month we will offer free USIM card replacements to all customers who wish to replace their cards."
Customers who wish to replace their USIM cards can make a reservation through the KT.com website or the dedicated USIM replacement center from 9 a.m. on the 5th and then replace their USIM at KT retail stores nationwide. For customers who find it difficult to visit a store, a self-activation service via courier delivery will also operate from the 11th of this month.
Considering that applications may be concentrated at the start of the program, the company will first proceed with replacements in areas where damage from unauthorized small payments occurred (Gwangmyeong, Geumcheon, etc.) and then expand in stages to the Seoul metropolitan area and nationwide. In eight districts of Seoul, nine cities in Gyeonggi, and all of Incheon, replacements will be available from the 5th; in the broader Seoul metropolitan area and all of Gangwon, from the 19th of this month. From the 3rd of next month, USIM replacements will be available nationwide.
The company said the same free USIM replacement will apply to budget phone customers who use the KT network. Specific schedules and methods will be announced later by each budget phone operator.
KT said, "With this measure as a starting point, we plan to further strengthen overall network security and personal information protection to build a communications environment that customers can use with confidence," adding, "We will continue efforts to minimize customer inconvenience and to fundamentally improve our security system and stabilize services to become a trusted corporations."