KT's (030200.KS) board of directors has codified a ban on outside directors' intervention in personnel, business and investment matters in its ethics code. The move extends the telecom operator's governance reform efforts, following earlier rule changes aimed at expanding the CEO's managerial autonomy.
KT's board said on the 14th that it had added a new provision to its outside director ethics code stating that "outside directors shall not exercise influence that undermines fairness or independence in the company's personnel, business and investment matters."
The board also required outside directors to complete an "Outside Director Ethics Practice Self-Assessment Checklist" every half year to review their own compliance. The outside director commission agreement was also revised. The updated agreement stipulates that outside directors must comply with related regulations, including laws, the articles of incorporation, the corporate governance charter and the outside director ethics code.
A new provision emphasizing ethical conduct was also established. If a violation of related rules or damage to independence or ethical standards is recognized, the board can impose measures through a resolution, including a warning, restrictions on attendance and participation in board and committee deliberations, recommendations not to exercise voting rights, and recommendations to resign.
"Through steady improvements in governance, we will strive to contribute to the company's sustainable growth and enhancement of corporate value, and to meet the expectations of customers and shareholders," KT Board Chairman Kim Yong-heon said.
