Prosecutors have questioned a former chief of KT, a major telecom operator in Korea, as part of an investigation into suspicions that the firm s executives formed a slush fund through unfair subcontract deals, sources said Friday.
KT ex-CEO offices raided as corruption scandal escalates lightreading.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from lightreading.com Daily Mail and Mail on Sunday newspapers.
Prosecutors on Thursday raided about 10 places related to telecom giant KT s acting CEO and two former CEOs as part of their investigation into allegations of preferential work contracts provided to one of the company s subsidiaries.
KT CEO Ku Hyeon-mo has decided to drop out of the race for leadership of the telecommunication firm for the next three years, the company said Thursday. “After Ku notified KT s board of directors of his intention, the board members moved to exclude him from the list of next CEO candidates,” KT said in a press release.
The Yoon Suk Yeol administration has indicated its intention to meddle in the governance of former public enterprises that have long since been privatized - two decades ago - as the government forced financial holding companies recently to replace their chairmen. Concerns are therefore growing over the possibility of nepotism spreading to both KT and POSCO Holdings, based on who ends up replacing their chief executives.