KT outside director Cho Seung-a lost her KT outside directorship because of a conflict of interest with Hyundai Motor Group, the largest shareholder.
KT disclosed on the 17th through the Financial Supervisory Service's electronic disclosure system that "outside director Cho Seung-a lost her outside directorship under Article 542-8, Paragraph 2 of the Commercial Act."
Cho's outside director resignation date is retroactively applied to Mar. 26 of last year, when she took office as an outside director of Hyundai Steel. Accordingly, from that point until today, all portions of KT board resolutions in which Cho participated are void.
The current Commercial Act stipulates that when the largest shareholder is a corporation, that corporation's directors, auditors, executive officers, or employees lose their eligibility to serve as outside directors. Cho was appointed a KT director in June 2023. But shortly afterward, in Mar. 2024, she was also appointed an outside director of Hyundai Steel, an affiliate of Hyundai Motor Group. When the National Pension Service sold part of its KT stake in March last year and Hyundai Motor Group became KT's largest shareholder in April of the same year, Cho could no longer concurrently serve as a KT outside director.
KT confirmed during the vetting of candidates for outside directors to be submitted to next year's regular shareholders meeting that there was a problem with Cho's eligibility as an outside director.
It is controversial that on the 16th, the KT board's director recommendation committee, which included Cho, voted to finalize former head of the business division (president) Park Yun-young as the next CEO candidate. KT said Cho did not take part in the in-depth interviews of the three candidates, including Park, but questions over legitimacy are likely to continue as a person who lost eligibility as an outside director was involved in the CEO selection process.
A KT official said, "After reporting the matter to the board, the company completed disclosures in accordance with relevant laws and regulations and is proceeding with the change registration," adding, "A review of resolutions of the board and committees held after the date of concurrent service confirmed that all requirements for the resolutions were met." The official added, "We will continue to strengthen the board's transparency and accountability through more thorough legal compliance and maintain the trust of shareholders and stakeholders."