KT, the nation’s No. 2 telecom carrier, has shown renewed vigor recently under the leadership of chairman and CEO Hwang Chang-gyu, who took office in January last year.

For more than a decade, KT has been a fast follower behind SK Telecom, which played a leading role in creating key consumer and technological trends in the telecom industry.

Although the state-run KT was privatized in 2002, a deep-rooted sense of complacency had been holding back the company and its employees.

But the new CEO, former president of Samsung Electronics’ memory business division, seems to be showing no more tolerance toward that laid-back attitude.

Over the past year, Hwang carried out a large-scale restructuring program, spurring employees to restore profits. His tight approach faced sometimes fierce resistance from the labor union. 

A company executive said employees had hoped for someone with a KT background before his appointment, but now most of them show trust in his leadership and expertise.

“It’s true that we feel more pressure under Hwang’s leadership. But at the same time we know this is the right direction for future growth,” he said on condition of anonymity.

In reflection of renewed commitment to business acumen and speed, KT is more recently outpacing rivals to preempt the market.

There were two big launches within the industry in the first half of this year ― data-based service plans and the world’s first commercialization of the GiGA LTE ― and both were led by KT.

In May, KT started the nation’s first phone plans based on data use. At a time when Internet-based communications are fast replacing traditional voice calls and text messages, KT succeeded in leading the paradigm shift.

On Monday, the company made a surprise announcement on the GiGA LTE, the fastest mobile network technology that would pave the way for the next fifth-generation network service.

The nation’s three telecom carriers, which also include LG Uplus, had already secured related technologies, but the issue was who would first join hands with Samsung Electronics, the device-maker, to start the service.

Considering the tight lobbying race, industry watchers say the chairman could have played a key role in persuading his former colleagues for KT to win the Samsung deal.

“The ‘first’ title is a useful marketing tool within the telecom industry. SK Telecom is feeling the pinch,” said another industry source.

Despite recent achievements, Hwang still faces challenges to cope with, including improving profit margins, diversifying the business portfolio and expanding global presence. More recently, KT is pouring resources into overseas infrastructure projects.

By Lee Ji-yoon (jylee@heraldcorp.com)