( CNN ) -- In the high-tech world of South Korea , it 's difficult to find someone who is n't plugged in . Demand here is fulfilled by the country 's largest mobile phone carrier , SK Telecom . CEO of SK Telecom , Kim Shin Bae spoke to CNN 's Andrew Stevens in The Boardroom . It 's ubiquitous branding hints at the 51 percent market share the company holds . Earlier this year the company broke with South Korea 's rigid corporate tradition . They scrapped the hierarchy in favor of a flatter management structure in the hope of encouraging risk taking and creativity . These decisions were the making of CEO , Kim Shin Bae , who 's been at the helm since 2004 . He sat down with CNN 's Andrew Stevens to explain the hidden value of corporate culture . Kim : I think we need to be more creative and innovative in order to be a global communications leader . To create a new culture , we broke from the Asian tradition of seniority based hierarchical structure by introducing a single level manager system . This is for the open-minded communication and knowledge sharing between employees and a speedy organizational process . We introduced it more than a year ago and I think it 's selling quite well . Stevens : So how difficult was it to get your people on board with these changes ? Kim : Korea is basically a Confucian culture , so we respect the elders and the senior people . So with the senior people , the hard debate with the senior people is the difficulty . But by introducing the single level structure we could encourage more free communication . Stevens : Since the 1960s , the South Korean economy has developed enormously , so why was there a need to change it ? Kim : As you know , during the last several decades of South Korean economic growth , manufacturing was the real core industry . In manufacturing the hierarchy code -- the strong top down leadership -- is very effective and sometimes very efficient . Now the world is changing , especially for IT services and communication services . Creativity and innovation from the very free communication knowledge sharing is more and more important so I think we need that kind of change especially for SK Telecom . Stevens : Today is the company 's monthly `` Funergizer '' -- a lunch-time entertainment for employees held in the lobby of SK Telecom 's headquarters . Kim : I think the happy employees can make others happy . Their work their productivity will improve . So every month during lunch time , we introduce the talent -- professionals of music , dance , or drum players for employees . It will also help the creative and flexible corporate culture , I think . All those have the synergy to change the culture . I think the corporate culture is much more important than the system or process . Our business environment changes very quickly . Once the system or process is set up , then it might have some other shackle for us to change . But the corporate culture drives the people , even though they are not the older this would do it this way and that way , so corporate culture I think is very important . Stevens : We 've been talking a lot about the softer issues , about softer employee relations , rather than the structure and processes of corporate South Korea . Do you think the softer issues are becoming more important right across industry here ? Kim : I think with the rise of China and India as a manufacturing base , we need to be more toward the service oriented company which requires more creativity , so I think it 's very natural . But I think that creativity and efficiency should take balance that 's why we also strongly implement the activities at SK Telecom together . So it 's this kind of ambidexterity , efficiency and creativity should take balance . E-mail to a friend .
Kim Shin Bae , CEO of SK Telecom speaks in CNN 's The Boardroom . Hide Caption Kim led the company against national tradition , scrapping corporate hierarchy .