KT headquarters staff decreases by 23%… Approximately 4,500 people applied for transfer/voluntary retirement to new subsidiary :: Empathy Media Newsis ::

KT on-site workforce relocation… Establishment of ‘Netcore’ and ‘P&M’, specialized telecommunication network subsidiaries

1,723 people applied for transfer, 2,800 people applied for voluntary retirement… Reduced to 15,000 employees

(Seoul = Newsis) Reporter Shim Ji-hye = It was revealed that 1,723 KT executives and employees applied for transfer to two new telecommunication network subsidiaries. At the same time, 2,800 people applied for special voluntary retirement. This amounts to approximately 23% of KT’s headquarters employees.

KT announced on the 5th that this was the result of receiving applications for transfer to a new subsidiary and special voluntary retirement until the 4th.

KT established a subsidiary specializing in technology in related fields to strengthen network stability in a situation where 70% of the field personnel responsible for building and maintaining network infrastructure are in their 50s. In order to strengthen network stability, KT established a subsidiary specializing in technology in related fields and hired new personnel in areas where the workforce is rapidly decreasing in the future. It has been announced that the company will recruit and become elite and specialize.

In relation to this, KT CEO Kim Young-seop said in an in-house broadcast held the previous day, “We will solve the difficulties of recruiting new people that have persisted for decades due to the significant difference from the market wage structure in certain jobs such as track, and at the same time grow as an artificial intelligence + ICT (AICT) company.” “It is a choice to improve network stability.”
On October 17, through consultation between labor and management, KT established technology-specialized subsidiaries KT Netcore (formerly KT OSP) and KT P&M, transferring network infrastructure construction and maintenance work such as lines and power, and transferring the work to those performing duties in those fields. It was decided to provide employees with opportunities to transfer to the new corporation and change jobs within the company.
As a result of the application for transfer applicants to the new technology specialized company conducted until the 4th, a total of 1,723 people (1,483 from KT Netcore and 240 from KT P&M) applied for transfer.

The personnel committee at each level makes the final selection of suitable personnel by considering the job expertise and capabilities of the applicants. The employees will be officially appointed as of January next year when the new corporation is launched.
The two technology companies, which will be in charge of tasks such as building and maintaining network infrastructure such as lines and power sources, plan to maintain stable network operations by recruiting new and experienced employees, transferring expertise, and strengthening synergy with partner companies.

We are proceeding with the establishment process with the goal of launching in January of next year. To this end, we have launched a task force composed of employees scheduled to transfer from each company and a separate task force to support the new corporation. On the 4th, we completed the application for registration of incorporation and also began developing a business-related IT system.
KT plans to quickly complete a flexible and rapid work performance environment and decision-making system optimized for field situations in order to maintain and improve the stability of the overall network infrastructure and the quality of customer service.

It is expected that, under an independent organization and personnel system, skilled workers will be able to focus on essential tasks, work for longer periods of time, and pursue specialization and advancement of the industry.
In addition to recruiting employees with experience in management planning and finance, the two new corporations will also open recruitment doors for network field positions and promote the recruitment and training of new talent.

KT graduates will continue to work for an additional three years after retirement and pass on their capabilities, expertise, and know-how to newly recruited young talent, contributing to nurturing next-generation experts in the network operation field.
In addition, a total of 2,800 people applied for special voluntary retirement, which was received along with transfer applications.

Assuming that all applicants for special voluntary retirement, including those transferred to the new corporation, retire, the number of KT employees will decrease to about 15,000, a 23% decrease from the existing number (19,370 as of the end of June).

Applicants for special voluntary retirement will retire as of the 8th of this month only for those who are finally selected after going through the personnel committee.
In addition, employees remaining at KT who did not choose transfer or special retirement will be assigned to each metropolitan headquarters through regular personnel transfers this year. Relevant employees are operated to develop their sales capabilities through job transition training consisting of theoretical training and field training.

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