Former KT(030200) CEO Koo, who was brought to trial on charges of interfering in the appointment of a subcontractor's CEO, was acquitted in the first trial. The court said it suspects Koo may have used his position within the group to involve himself in the management of the subcontractor, but found the evidence submitted by prosecutors insufficient to prove a crime.
The Seoul Central District Court's Criminal Division 23 (Chief Judge Oh Se-yong) on the 25th acquitted former CEO Koo, who was indicted on charges of violating the Fair Transactions in Subcontracting Act.
Koo was indicted on charges of ordering KS Mate, a subcontractor of KT Telecop, a KT subsidiary, in 2020 to appoint a former executive from a KT affiliate as CEO. Prosecutors sought a fine of 70 million won.
◇ "Management interference suspected, but evidence lacking"
The court said, "There is a suspicion that the defendant used the position at KT to interfere in the management of a subcontractor of an affiliate," but added, "When the facts are considered as a whole, the evidence submitted by the prosecutor is insufficient to recognize this."
Shin, a former KT vice president who was indicted alongside Koo, was fined 5 million won. The court found Shin guilty of coercion for using the position to have KT Telecop adjust existing partner volumes in a direction they did not want. However, the court found not guilty on charges of violating the Fair Transactions in Subcontracting Act and the Fair Trade Act and on attempted coercion.
◇ KT Telecop not guilty; some defendants receive suspended prison terms
The KT Telecop corporation was also acquitted. Among the other defendants, three were each sentenced to one to two years in prison, suspended for two to three years, and were ordered to forfeit between 33.55 million and 68.35 million won. Another defendant was sentenced to 10 months in prison, suspended for two years. Some of the charges applied to them, including violating the Fair Trade Act, were found not guilty.
The case expanded as prosecutors investigated in 2023 allegations that KT Group steered facilities management contracts. Prosecutors judged that it would be difficult to prove Koo's alleged violation of the Fair Trade Act related to the steering and declined to indict in May 2024, but separately brought to trial the charge of violating the Fair Transactions in Subcontracting Act for involvement in appointing the KS Mate CEO.