Park Yun-young (63), former KT president (head of the corporations division), has been selected as the next CEO candidate for the "telecom giant" KT. A shareholder meeting vote in March remains, but the telecom industry views Park as likely to be appointed smoothly because of a strong understanding of KT and no ties to parachute appointments.
Park faces tasks including responding to the fact-finding probe into the hacking incident, the Microsoft (MS) contract controversy, and alleged cover-up by the Korea Media and Communications Commission; strengthening organizational culture; and identifying new growth engines centered on B2B (business-to-business) transactions.
KT's director candidate recommendation committee on the 16th conducted in-depth interviews with three people — Park Yun-young, former KT president; Ju Hyeong-cheol, former SK Communications CEO; and Hong Won-pyo, former SK shieldus vice chair — and confirmed Park as the final candidate for the next CEO. Born in 1962, Park graduated from Seoul National University with a degree in civil engineering and earned a master's and a doctorate in civil engineering. He joined Korea Telecom (now KT) in 1992 as a network technology researcher, moved to SK, and then returned to KT. He later served as head of future business development at KT Convergence Technology Institute, head of corporations business consulting, and head of the corporations business division (president).
◇ Tasks include stabilizing KT after the hacking and strengthening organizational culture… "Management direction will show through executive appointments"
Park's top priority is handling KT's hacking incident. This year, unauthorized small-sum charges occurred affecting a total of 368 customers, and the personal information of 22,227 people was leaked. A joint public-private task force is investigating, and depending on the outcome, administrative penalties such as waiver of termination fees and business suspension are possible. A penalty surcharge from the Personal Information Protection Commission and civil lawsuits by victims are also expected. Kim Jong-cheol, the Korea Media and Communications Commission (KMCC) Chairperson nominee, said looking first at whether KT violated the Telecommunications Business Act would be a priority, requiring a response.
Also, KT's project announced in June to invest 2.3 trillion won over five years with MS must be revisited amid rising concerns over Data Sovereignty infringement and allegations of unfair transactions. An industry official said, "It will be difficult to cancel the contract with MS outright, but there seems to be a possibility of downsizing it through negotiations."
As a KT lifer, strengthening a frayed organizational culture is another task. Testimony by CEO Kim Young-shub and executives at the National Assembly hearing on the KT hacking showed that internal communication was not smooth. Park's first step to show his management color will likely be the first round of executive appointments immediately after the March shareholder meeting. A person familiar with KT's situation said, "Executives who caused controversy or failed to respond properly need to be decisively removed, while those with ability but who have been sidelined should be embraced to rebuild the organizational culture."
◇ Needs to secure new growth engines with "B2B" as a specialty
Beyond the stagnant B2C business in a limited domestic market, driving B2B centered on artificial intelligence (AI) is also Park's task. For KT and telecom companies at large, future revenue sources lie in B2B focused on AI, data centers, and cloud. KT, in particular, urgently needs to strengthen competitiveness after failing to win the government-led sovereign AI project.
In a plan released last month to enhance corporate value, KT likewise set a goal to expand AICT (AI+ICT), which accounts for 7% of total 2024 revenue, to 19% by 2028. A telecom industry official said, "As an assistant vice president, Park introduced the country's first internet protocol TV (IPTV) service, and as head of the corporations business division, he shifted the business structure from dedicated leased lines to customer- and industry-specific digital transformation (DX), driving revenue," adding, "Having shown the ability to develop new businesses in the past, he will prove his capabilities again this time."
◇ "Restoring trust is the top priority" "A swift normalization is needed"
Park reached the top post at KT after four attempts. He advanced to the final round when former CEO Koo Hyun-mo was selected in 2019. He was also among the four final candidates in Feb. 2023 and was again included in the final pool in July of the same year.
Inside and outside KT, there is a welcoming mood that the external interference repeated since privatization is quiet this time. An internal official said, "It appears there will be a clearing out of parachuted executives and employees who were brought in at higher salaries than existing staff," adding, "Stabilizing the hacking fallout is the most important task, and it is fortunate that the CEO is from inside."
Former KT leadership is also offering full-throated support. Former KT CEO Koo Hyun-mo advised Park that "the first thing to do is restore KT's fallen trust." Former KT president Yun Kyung-lim said, "KT has become much more difficult, but I believe the company will be normalized quickly, as Park knows KT's internal situation well."
The market is also welcoming Park. Kim Hong-sik, an analyst at Hana Securities, said, "KT still faces negatives related to the hacking, such as a penalty surcharge, but those risks are already well known, and expectations will rise as the new CEO is confirmed."