South Korea's KT union files police report against outside director, calls for board overhaul
KT’s labor union says it has filed a police report against an outside director over misconduct and is demanding a full reshuffle of the board. The union said on the 17th that it lodged the complaint with Seoul’s Jongno Police Station the previous day, accusing the director of obstruction of business and breach of fiduciary duty, including alleged attempts to secure a top management planning post and improper interference in personnel decisions.
The union also alleges the outside director pressured relevant departments and decision-makers to push KT’s investment in Rivada, a satellite communications company based in Germany. It says investigators should determine whether the director violated fiduciary duties and whether the moves caused any harm to the company.
KT’s labor group said the director’s alleged conduct sits at the center of moral and legal controversy, and that immediate suspension and cooperation with investigators are the minimum duties owed to employees and shareholders. The union pressed for a comprehensive overhaul of the board and fundamental reforms to prevent recurrence.
Among the measures sought are the introduction of an external director evaluation system and a labor director system, along with strengthened compliance programs. The union argues these steps are essential to restore trust and ensure independent oversight of executive decisions.
The union also indicated it could pursue further legal actions as the investigation yields objective materials, adding that KT shareholders will exercise their rights to push for a normalized board until governance is restored.
Context for international readers: KT Corp is one of South Korea’s leading telecom operators, with extensive involvement in fixed-line and mobile services, as well as emerging efforts in high-speed networks and satellite-related projects. Outside directors in Korean firms are supposed to provide independent oversight, while labor directors represent workers’ interests; both roles are central to governance reforms that have drawn international attention.
The Rivada investment mentioned by KT’s union refers to a German-based satellite communications firm. Cross-border investments like this highlight how Korean conglomerates’ governance and decision-making can influence international partnerships, technology strategy, and supply chains that matter to U.S. investors and technology firms. Reforms aimed at strengthening governance in Korea can affect corporate risk, capital flows, and regulatory expectations for foreign collaborations and markets.