The National Pension Service disclosed on the 2nd that it changed the purpose of its KT shareholding from "passive investment" to "general investment." The National Pension Service is currently the second-largest shareholder with 7.05% equity in KT. The industry interpreted this as a move indicating the National Pension Service plans to actively exercise shareholder rights ahead of the regular shareholders meeting in March, when the agenda to begin the appointment process for CEO-designate Park Yoon-young will be raised.
In the filing, the National Pension Service also said it would dispose of 1,556,640 shares, equivalent to 0.62% equity in KT, as it changes its investment purpose. The National Pension Service changed its KT shareholding purpose from general investment to passive investment in Feb. last year. It has changed it back to general investment after two years.
Under the Financial Investment Services and Capital Markets Act and its enforcement decree, shareholders like the National Pension Service who hold 5% or more equity in a listed company must disclose their purpose of holding as one of passive investment, general investment, or management participation. Passive investment means exercising only the minimum rights as a shareholder—such as voting rights, rights to subscribe for new shares, and dividends—without involvement in company management. General investment means there is no intention to influence control, but the shareholder will engage in active shareholder activities such as shareholder proposals.
The National Pension Service had maintained its position as KT's largest shareholder and actively exercised shareholder rights during each CEO transition. During the 2023 KT CEO selection process, the National Pension Service expressed opposition to former KT CEOs Koo Hyun-mo and Yun Kyung-lim, sending the selection back to square one. However, in Apr. 2024, the National Pension Service ceded the top shareholder position to Hyundai Motor Group.