Prosecutors are expected to intensify their investigation this week into KT CEO Koo Hyun-mo, who has been accused of breach of fiduciary duty, and Yoon Kyung-rim, head of the Transformation Division (President) and the designated next CEO of KT.
According to the legal community on the 14th, the Fair Trade Investigation Division of the Seoul Central District Prosecutors' Office (Chief Prosecutor Lee Jung-seop) was assigned the case on the 10th, in which the civic group "Justice People" filed a complaint against CEO Koo and President Yoon, and is currently examining the necessity of summoning related parties and conducting searches and seizures.
A prosecutor involved in the case told this publication, "We are currently reviewing the complaint," adding, "We are thoroughly examining all the allegations raised." Considering the recent investigative trends of the Fair Trade Investigation Division in cases involving other companies, it is anticipated that they may soon conduct searches and seizures at KT and related institutions.
Recently, there have been reports that prosecutors have decided to expand the scope of the investigation beyond KT to include Hyundai Motor Company. This is due to allegations that Yoon Kyung-rim, then Vice President of Hyundai Motor Company, was involved in the process when Hyundai Motor acquired an automotive software venture company operated by Koo Jun-mo, Koo Hyun-mo's twin brother, in July 2021. The civic group "Justice People" also requested an investigation into this allegation in their complaint to the prosecutors. Additionally, prosecutors are reportedly planning to investigate all allegations surrounding KT, including preferential treatment in business dealings, collusion with political circles regarding KT-owned hotels, hospitality and entertainment provided to KT outside directors, and other related suspicions. There are also reports that prosecutors are looking into allegations of improper salary payments to former senior executives of KT. Furthermore, it is said that prosecutors have detected signs that KT deleted documents related to CEO Koo.
Prosecutors appear to be conducting a large-scale and swift investigation into this case. Amid the Yoon Suk-yeol administration's recent stance to eradicate vested interests and cartel-like power structures across various sectors of society, political and legal circles analyze that KT will serve as a precedent. President Yoon is known to be a close associate of CEO Koo, and the decision to designate him as the next CEO is viewed as reflecting the nature of a cartel protecting vested interests. The Presidential Office also pressured KT on the 2nd, stating that "governance must be conducted fairly and transparently" regarding the appointment of the KT CEO.
Meanwhile, the prosecution's investigation is expected to directly impact the KT annual shareholders' meeting scheduled for the 31st, drawing close attention from the business community. KT plans to appoint a new CEO at the meeting. As a preliminary step, an electronic pre-voting process on the agenda to appoint President Yoon as CEO began at 9 a.m. on the 13th. This procedure allows minority shareholders to exercise their voting rights. Voting will continue online until 5 p.m. on the 30th.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
