KT union lodges police complaint over outside director obstruction, fiduciary breach, Rivada pressure

KT labor union has filed a complaint with the Seoul Jongno Police Station against outside director Lee Seung-hoon, accusing him of obstruction of business and breach of fiduciary duty (including attempted) in connection with interference in personnel decisions and pressure to invest in a German satellite communications firm.

The union says the allegations cover actions from the second half of 2025 through January this year, including the outside director using his status to push for appointment to the role of head of “Management Planning” and to strongly urge decision-makers to back investments related to Rivada.

Officials from the labor union say internal company investigations may not provide timely, objective clarity, and therefore external law enforcement inquiry is the only viable path to establish facts. They also call for the immediate suspension of the outside director and full participation in the investigation by the relevant parties.

Beyond the specific case, the union frames this as a systemic governance problem rather than an isolated incident. It urges the board to undergo a comprehensive personnel overhaul, adopt an outside-director evaluation system, introduce worker representation on the board, and strengthen compliance measures to prevent a recurrence.

The union says it may pursue additional legal actions depending on the evidence and will exercise shareholder rights to push for board normalization and stronger governance controls.

Kim In-kwan, head of the KT labor union, stressed that KT belongs to its employees and shareholders, not a single faction, and vowed to pursue the investigation to ensure governance transparency and protect the company’s foundations.

KT is South Korea’s leading telecom operator and a major player in the country’s digital infrastructure. Rivada, referenced in the allegations, is a German satellite communications company linked to KT’s investment discussions. The case highlights ongoing debates in Korea over corporate governance reforms, including the role of outside directors and worker representation, and raises questions for international investors and partners about governance risk, decision-making processes, and the stability of Korea’s technology and telecommunications ventures.