Prosecutors Conduct Search of KT Over Alleged Overpriced Purchases by Hyundai Motor Affiliates

The prosecution has conducted a search and seizure of KT Group employees in connection with allegations of the high-priced acquisition of shares in a Hyundai Motor affiliate by a KT subsidiary.

Seoul Central District Prosecutors' Office, Seocho-gu, Seoul. Photo by Jinhyung Kang aymsdream@

According to the legal community on the 17th, the Fair Trade Investigation Division of the Seoul Central District Prosecutors' Office (Chief Prosecutor Yong Seong-jin) sent prosecutors and investigators to the residences of two employees of KT and KT Cloud to secure materials.

They are known to have been involved in the work when KT Cloud acquired Open Cloud Lab (formerly Spark & Associates, Spark), a cloud service provider for vehicles, in September last year.

The prosecution suspects that KT Cloud paid several hundred million won more than the normal corporate value during the process of purchasing 100% of Spark's shares for 20.68 billion won at that time.