KT union members approved a tentative deal for an average 3 percent increase in base pay and a 3 million won lump-sum payment. The vote sealed the first wage and collective bargaining agreement since CEO Park Yoon-young took office, with 94.5 percent in favour.

KT said on Thursday that the tentative wage deal passed with 94.5 percent support in a union vote held the previous day. A total of 9,252 members, including those from the KT union and the New Union, took part, and 8,742 voted in favour.

Base pay will rise by a fixed 2 percent rate plus an additional 590,000 won per year. The increase will be applied retroactively from Jan. 1 this year. The retroactive amount and the 3 million won lump sum are set to be paid on Oct. 23. KT will maintain the current performance pay system.

KT will also increase the share of top grades in personnel evaluations. Starting with this year's evaluations, the share of the S grade will rise to 20 percent from 10 percent. The E grade will expand to 40 percent from 30 percent. The G grade will be cut to 30 percent from 50 percent. The N grade will remain at 10 percent.

In welfare, KT will provide current employees with 50,000 won a month for pension savings from January next year through December 2036, and raise the annual cap on medical expense support to 20 million won from 10 million won. For family members, a 10 million won cap will apply.

Among employees covered by the wage peak system, the wage payment rate for those receiving an S grade in performance evaluations will be raised to 90 percent. The E grade will be raised to 85 percent. Those with an N grade in competency evaluations will be excluded. The measure will take effect from January 2027, reflecting this year's evaluation results.

KT plans to operate a joint labour-management task force from the fourth quarter to discuss measures to respond to an extension of the retirement age.