KT Corp. shareholders approve new CEO

SEOUL, Jan. 14 (Yonhap) -- Shareholders of KT Corp., South Korea's biggest fixed-line telephone and broadband Internet operator, on Wednesday approved the appointment of a former top government official as its new chief executive officer.

Lee Suk-chae, 63, who served as an information and communications minister in
1995, replaced Nam Joong-soo, 50, who stepped down in November after being
arrested on charges of taking 300 million won (US$220,751) in kickbacks from
mobile affiliate KTF Co. and its subcontractors.
The two month-long management vacuum forced the company to put its new market
plans on hold.
The new CEO, nominated by KT's board in December, has served in several
government posts since 1969.
Lee is expected to face an uphill battle to help KT find new sources of revenue
and profit in the saturated South Korean telecommunications market, some analysts
say.
KT plans to apply later this month for a merger with KTF, a source said earlier
this week. If the much-anticipated deal is approved, experts say the company
could see 20 billion won in sales by June.
KT controls 90 percent of South Korea's telephony services and more than half of
its 12 million broadband Internet subscribers, while KTF serves more than 40
percent of the country's mobile phone users.
ygkim@yna.co.kr
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