The recent KT incident has unveiled significant issues surrounding South Korea's leading telecommunications company, which employs over 55,000 people and ranks as the 13th largest conglomerate based on total assets. Not merely a private corporate affair, this situation has implications for public trust due to KT's historical roots in state-run telecommunications services. President Lee Jae-myung emphasized the role of the National Pension Service, KT's second-largest shareholder, in adhering to the 'Stewardship Code,' which promotes responsible shareholder practices and management accountability. The transition of the National Pension’s holding strategy reflects a shift towards active engagement in governance.

The scandal has raised alarms for many, particularly concerning cybersecurity breaches that exposed the personal information of over 22,000 customers, compounded by the unexplained concealment of these incidents for more than a year and a half. Such actions jeopardize user trust in a company that is expected to provide secure communications services. Furthermore, KT's recent failure to secure a spot in the government’s AI national model has added to the company's woes, demonstrating a broader existential challenge in adapting to modern technological demands. Concurrently, disconcerting reports have surfaced about a board meeting where conflict of interest allegations were met with hostile behavior from certain directors, casting further doubt on KT's governance.

Compounding these issues is the revelation that illegal board members, who lack the necessary qualifications, participated in last year’s CEO recruitment process, raising questions about the integrity and fairness of the selection criteria. Additionally, it has emerged that 7 out of 8 members of the chief executive recommendation committee were appointed during the current administration, raising suspicions of potential bias and further eroding public confidence. Moving forward, it is imperative for KT's ESG (Environment, Social, and Governance) practices and compliance structures to be scrutinized to ensure transparency and accountability, which are essential for restoring trust and stability in this critical sector of the economy.