Prosecutors raid KT's acting CEO, former CEOs over alleged biz favoritism

▲ KT Corp. headquarters in Seoul (Yonhap)

prosecutors-KT probe

Prosecutors raid KT's acting CEO, former CEOs over alleged biz favoritism

SEOUL, July 20 (Yonhap) -- Prosecutors on Thursday raided about 10 places related to telecom giant KT Corp.'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.

The Seoul Central District Prosecutors Office sent prosecutors and investigators to the houses and offices of KT's acting CEO Park Jong-wook, senior executive Shin Hyun-ok and former KT CEOs Ku Hyeon-mo and Nam Joong-soo in the morning to secure evidence over the favoritism allegations.

Prosecutors suspect that incumbent and former KT executives have given preferential business treatment to KDFS, one of its subsidiaries, since about three years ago and used the increased proceeds from the controversial deals as slush funds.

The prosecution launched the investigation in May with a raid on the KT Corp. headquarters in Seoul and a court issued an arrest warrant for Hwang Wook-jung, president of KDFS, last week on charges of breach of trust and embezzlement.

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