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[Alpha Biz=(Chicago) Reporter Kim Jisun] Prosecutors raided KT's headquarters on the 16th over allegations of giving all the work to its affiliates. Starting with the forced investigation process, the investigation into former KT CEO Koo Hyun-mo and others is expected to speed up.
The Fair Trade Investigation Department (Director Lee Jung-seop) at the Seoul Central District Prosecutors' Office conducted a raid on about 10 locations, including KT's headquarters in Jongno-gu, Seoul, its affiliates including KT Telecop, and the offices of its partners and officials. Prosecutors are investigating allegations that former CEO Koo and others drove the work of KT Telecop, a group security affiliate, to KDFS, a facility management company.
Based on the data obtained through the search and seizure, the prosecution will confirm suspicions that KT Telecop deducted the amount of KFnS, which had a large deal with KT Group, and unfairly increased the transaction amount with KDFS, or that KT Telecop changed its existing quality evaluation standards to give work to KDFS. The prosecution is expected to summon former representative Koo after specifying the charges based on data obtained through the seizure search and statements from those involved.
Prosecutors are also reportedly looking into allegations that former CEO Koo mobilized a subsidiary to buy Hyundai Motor Group Chairman Chung Eui-sun and sister-in-law to thank Hyundai Motor Co., which took over his twin company at a high price.
KT insiders are paying keen attention to whether the seizure search will affect the process of appointing a chief executive officer (CEO) in the future, even though it was "expected." KT is currently operated as an emergency management system by Park Jong-wook, head of the management planning department (president).
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
