KT Labor Union Protests Workforce Reallocation as Company Shifts to AI Focus

The KT Labor Union Central Headquarters began staging a sit-in protest at KT’s Bundang office on Oct. 14, opposing the company’s workforce reallocation plan. This move comes as KT Corp., a major South Korean telecommunications company, aims to expedite its transition to an AI-driven enterprise by reorganizing its structure and personnel.

On Oct. 15, KT’s board of directors convened and approved the establishment of two new subsidiaries, tentatively named KT OSP and KT P&M, with investments of 61 billion won and 10 billion won, respectively. Both subsidiaries will be wholly owned by KT and are expected to complete their corporate registration on Jan. 1 of next year.

KT’s decision to create these subsidiaries is part of a broader strategy to enhance organizational efficiency by reallocating field personnel. The newly established subsidiaries will handle network and installation-related tasks. The company plans to transfer employees to the new entities and offer special voluntary retirement packages for those who do not wish to transfer. These packages reportedly provide severance pay exceeding 300 million won for field personnel.

KT stated, “We have decided to pursue workforce innovation to transition to an AICT company. This is not an artificial and coercive reduction of personnel typically associated with ‘restructuring,’ but rather a reallocation of certain roles and personnel where efficiency is needed.” The company emphasized that it will deeply consider employment stability and promote job and personnel reallocation based on employee choice, ensuring reasonable treatment, compensation, and opportunities for extended employment.

Despite these assurances, the KT labor union remains staunchly opposed to the workforce reallocation. The union has been staging a sit-in protest at KT’s Bundang office since the 14th and plans to hold a general strike resolution meeting at KT’s Gwanghwamun office on the 16th to protest against the unilateral organizational restructuring.

KT plans to communicate with internal members and negotiate with the union regarding the workforce restructuring plan. The company aims to balance its strategic goals with the need to maintain employment stability and fair treatment for its employees.