KT faces criminal probes for questionable donations

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National

Tue, April 24, 2018 | 23:32

KT faces criminal probes for questionable donations

Posted : 2018-01-03 15:46

Updated : 2018-04-16 11:07

KT Chairman Hwang Chang-gyu

By Lee Kyung-min

KT, the nation's second-largest mobile carrier, is facing multiple criminal investigations over allegations it offered money to lawmakers sitting on a National Assembly committee overseeing communications and broadcasting-related legislation, in return for business favors.

In particular, the company is suspected of "donating" hundreds of millions of won to the association managing the country's e-sports to curry favor with its former chairman, who later became a top political advisor to President Moon Jae-in.

KT Chairman Hwang Chang-gyu is also facing increasing pressure to resign over what union members claim is misconduct and mismanagement, evidenced by investigations separately undertaken by the police and prosecution late last year.
The firm's largest union representing a quarter of all employees recently elected a new leader who demanded Hwang's immediate resignation.

A police investigation is underway over allegations that up to eight officials at the firm's corporate relations (CR) department donated political funds illegally to an unidentified number of lawmakers on the National Assembly Broadcasting and Communications Committee. Officers said they will question involved figures soon.

This follows the investigation by the prosecution into allegations that the firm "donated" an unidentified amount of money to Korea e-Sports Association (KeSPA), a sports association formerly headed by Jun Byung-hun, former presidential secretary for political affairs.

Investigators from the Seoul Central District Prosecutors' Office said they were reviewing the firm's financial records and the cell phones of CR officials, after the firm voluntarily submitted them at the request of the prosecution.
Prosecutors believe the firm gave the money in return for Jun's influence with the committee. Jun, while he was a presidential secretary, was alleged to have called a high-ranking official at the Ministry of Strategy and Finance to allocate 2 billion won ($1.8 million) to the association, despite protests from the ministry official.

KT sponsored numerous events organized by the association and gave broad support to its company-run professional gamer team, which prosecutors believe has room for monetary and material exchanges both mutually benefitted from.
They are also looking into how much money the firm paid in the form of "donations" and where it secured the funds from.

Meanwhile, the investigation into KT is the latest development in bribery allegations surrounding Jun, the first high-ranking presidential aide to President Moon Jae-in implicated in a bribery scandal. A district court refused to issue arrest warrants for him twice citing insufficient grounds to detain him.
Jun was alleged to have pressured Lotte Homeshopping and GS Shop to "donate" 330 million won and 150 million won, respectively. He was also alleged to have received 4 million won in gift certificates from Lotte Homeshopping and had his family members use them.

lkm@ktimes.com