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Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] KT Corporation’s board of directors (Chairman Kim Yong-heon) experienced a disrupted meeting as heated exchanges and profanity erupted during discussions concerning allegations that a specific outside director intervened in company investment and personnel decisions.
The board, tasked with overseeing compliance and neutrality, has instead become the focal point of internal conflict and procedural controversy, raising questions not only about the independence of outside directors but also the neutrality and decorum expected of all board members.
According to an Edaily report on the 25th, the KT board met on January 20 to receive an oral report from the Compliance Committee regarding allegations that Outside Director A facilitated investment in German satellite firm Rivada and subsequently requested personnel changes. During the discussion, Outside Director B reportedly shouted profanities including “Hey, you bastard” and “Rude,” which led to the suspension of debate, and the meeting ultimately adjourned without a conclusion.
The board has scheduled a preliminary briefing session to revisit the matter ahead of a formal board meeting, now set for February 9. KT’s compliance office reportedly submitted an internal report noting that the issue “may pose concerns,” although this does not constitute a legal judgment, and the facts and procedural appropriateness remain under review.
Outside Director A has denied wrongdoing, submitting a statement asserting that “no financial transactions occurred,” and the company has pledged to ensure that A will have adequate opportunity to present counterarguments in future discussions. As of yet, the Compliance Committee’s formal report and A’s rebuttal have not been publicly submitted.
Sources indicate that the controversy centers on the timing of A’s involvement in the Rivada investment review and subsequent personnel requests. Reports suggest that on May 22, 2024, former U.S. Secretary of State Mike Pompeo, serving as a Rivada outside director, visited Korea for an event hosted by Chosun Ilbo, during which A reportedly arranged a meeting with KT CEO Kim Young-seop, marking the beginning of engagement.
On June 12, 2024, a non-disclosure agreement (NDA) with Rivada was pursued, during which A actively sent emails, participated in the company-wide task force formation, and influenced conference call proceedings. Internal sources questioned whether these actions exceeded the normal scope of an outside director’s role. Ultimately, on July 15, CEO Kim decided to put the investment on hold.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
