KT LABOR UNION SAYS REAPPOINTMENT OF CURRENT CHAIRMAN IS INAPPROPRIATE
KT Corp. Chairman Hwang Chang-gyu has led the company with an intensive restructuring program by reducing its debts, which amounted to 20 trillion won (US$16.82 billion) and selling its affiliates not related to telecommunications such as KT Rental and KT Capital after the inauguration in 2014.
With Hwnag’s such efforts, KT, which had been suffering losses, has returned to profit. The company posted 406.5 billion won (US$341.88 million) in operating losses in 2013 but ran a surplus of 1.29 trillion won (US$1.09 billion) in 2014. It also saw its operating profit reach 1.21 trillion won (US$1.02 billion) in the third quarter of 2016, which came close to profits last year.
Meanwhile, a KT Labor Union (head Lim Soon-taek) spokesperson said, “Before the termination of Hwang’s term of office, we formed “KT CEO Management Assessment Committee,” which included outside experts, and carried out the evaluations on Hwang’s management. As a result, we reached a final conclusion on December 6 that Hwang’s consecutive term of office is very inappropriate.”
To be more specific, it said, “The company’s net profit consecutively made losses in 2013 and 2014. It suffered a loss of 270 billion won (US$227.08 million) due to the failure in the BIT development in 2013, while it posted a net loss of 1 trillion won (US$841.04 million) owing to the increase in one-time fees caused by the largest voluntary retirement program in history in 2014. However, the business showings in 2015 included 1 trillion won (US$841.04 million) that came from the sale of KT Rental.”
He also added, “The operating profits in 2015 and 2016 grew as the company cut down on labor costs by eliminating 8304 jobs through the voluntary retirement program in 2014. KT’s additional labor costs decreased by 600 billion won (US$504.63 million) in 2015 compared to that of 2013, while its operating profits increased by 560 billion won (US$470.98 million) in 2015 compared to 2013. Hwang practically had no accomplishments except for the reduction in labor costs.”