KT Executive Accused of Public Line Bid Rigging Faces Detention Decision... Possible Ruling This Afternoon

[Image source=Yonhap News]

[Asia Economy Reporter Kim Hyung-min] The decision on whether to detain a KT executive accused of leading bid-rigging among telecommunications companies over dedicated public sector lines is expected as early as the 14th.

At 10:30 a.m. on the same day, Judge Kim Tae-gyun of the Seoul Central District Court, who is in charge of warrants, is holding a pre-arrest detention hearing (warrant substantive examination) for Han Mo (57), an executive of a KT subsidiary, who has been charged with violating the Fair Trade Act and bid interference.

The decision on whether to issue an arrest warrant for Han is expected to be announced as early as that night.

Han is accused of colluding with other telecommunications companies by favoring a specific company during the process of securing public sector dedicated line projects, including the National Science and Technology Research Network backbone line construction project ordered by the Public Procurement Service in November 2015. Han worked as the head of KT's Public Customer Headquarters before moving to an executive position at a subsidiary this year.

A dedicated line is a communication line that connects specific points desired by the subscriber under a dedicated contract and can be exclusively used by that subscriber. In the case of the National Science and Technology Research Network backbone line, it connects the Korea Institute of Science and Technology Information with 16 universities and research institutions nationwide.

The prosecution received a complaint from the Fair Trade Commission stating that KT and two other telecommunications companies colluded in 12 public sector dedicated line projects from April 2015 to June 2017 and conducted an investigation. The Fair Trade Commission viewed KT, which holds a dominant market position, as leading the collusion.

The prosecution filed an arrest warrant for Han on the 13th.

Additionally, after indicting two former KT executives and KT Corporation on the 1st of last month, the prosecution is conducting further investigations into the project managers responsible for the collusion, including raiding KT's Gwanghwamun headquarters.