The KT board restored a rule it had revised in Nov. last year that required the CEO to go through prior discussion and a resolution by the board when carrying out personnel moves at the institutional sector head level or major organizational reshuffles.
The KT board said on the 23rd that it revised parts of the board's rules at a meeting held this month. The board said, "We deleted the existing rule that required the CEO to obtain prior approval from the board when pursuing appointments and dismissals of management executives at the institutional sector head level and organizational reshuffles, and decided to change matters related to organizational reshuffles from 'prior reporting' to the board to 'reporting.'"
Experts have noted that it was unusual for the KT board to revise the rules in Nov. last year to require the CEO to report personnel moves or organizational reshuffles in advance. That is because the company's articles of incorporation are based on the Commercial Act, which is a higher-level concept than the board's rules. Moreover, if a structure takes root in which the board rejects the CEO's key decisions, it would create a structure in which the directors steer the company's operations.
Along with this, the KT board recommended that, for outside directors suspected of violating company regulations, attendance at board and committee meetings and participation in deliberations be restricted until judicial findings are confirmed, and that their voting rights not be exercised.
With this measure, the KT board expects to further strengthen the CEO's accountable management and to focus on its original roles of making management decisions and overseeing management.
Kim Yong-heon, chair of the KT board, said, "This resolution is aimed at enhancing the rationality and transparency of board operations and clarifying the roles of the CEO and the board," adding, "With the launch of the new CEO system, we will establish a governance structure that meets the expectations of shareholders and stakeholders through continuous institutional improvements."
The company said, "The KT board is accelerating governance improvements."